Note 7 - Mining Properties

6 Months Ended

Jun. 30, 2011

Mineral Industries Disclosures [Text Block]

Note 7 – Mining Properties

Our property interests located in Peru are in the exploration stage and we refer to these properties as the "Gorilla Property." Our property interests located in Peru are in the exploration stage and we refer to these properties as the "Peru Property." 

Name	Area (hectares)	Dept	Province	District
Gorilla	400	Loreto	Datem del Maranon	Manseriche

 Exploration Program

 Shortly after our initial acquisition of the property interests in Peru, we commenced the initial stages of our exploration and development program and carried out the following activities:

·   Completed an initial social base line study to document all surface rights owners and people resident in the project area;

·   Implemented a community relations program to inform local communities of the project and what potential opportunities that may exist for community involvement in the implementation phases of the development program;

·   Acquired equipment for further evaluation and development of resources;

·   Set-up an operational base in the project area to continuously review the exploration program and prior experiences gained operating in this difficult terrain;

·   Began bulk sampling of the site to assist in mapping the property

 ·   Commissioned a preliminary master plan which indicated the size and scope of our projected operations and areas where more information is required.

The principle objective of our planned exploration and development program is to bring a dredge and appropriately matched floating plant onto the property to assist us in conducting trial mining tests which requires that we undertake the following actions:

·   Drill an area on the property where known mineralization;

 ·   Extend the resource though a wider-spaced program of reconnaissance drilling so as to indicate the potential size of the deposit;

·   Perform additional geotechnical and metallurgical studies to complement existing information in order to prepare the optimum processing route to be adopted in the exploitation phase; and

·  Prepare scoping, prefeasibility, and full feasibility studies.

Bulk Sampling

The Company spent 23 days engaged in bulk sampling which the resulted in the following data:

Gravel Mined:                                         135 m3 (apprx. 165 tons)

Raw Gold Produced:                              122 grams

Raw Gold Grade:                                     .90g/ m3

Raw Gold Value:                                     $34.74 per m3