Precious Metals Division - Pallasca

The Pallasca prospect consists of two concessions, Gianderi 29 (798 hectares) and Karolina Mines (100 hectares) (Figure 5). The elevation varies from 3,700 m to 4,400 m asl.

The property is underlain principally by sandstones/quartzites of the Chimu Formation. The property includes the abandoned (1979) Santa Rita tungsten mine, and the remains of numerous other small polymetallic operations can be seen on or adjacent to the preliminary work by Inca Gold, which has delineated an extensive area of argillic and siliceous alteration in Chimu sandstones on the flanks of Cerro Campana in the northern part of the property. A surface rock sampling program by Inca Gold in this area returned anomalous gold up to 1.3 g/t, with coincident anomalous arsenic and copper.

Sample values from the Karolina Mines concession show typical tungsten polymetallic results in tungsten (0.4%), silver (2 – 3 oz/t), and copper (1 –2%).