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Geophysical Surveys

Highvista has acquired and reviewed magnetic survey data which shows several anomalies on the property. A particularly strong magnetic anomaly occurs in the Las Quintas area which corresponds to an area where detailed field geological mapping reveals a strong foliation in conglomerates and overlying siltstones that dip to the south, and an intrusive unit also exhibits the same foliation. The magnetic anomaly may be associated with the emplacement of the intrusion, which appears to be a sill, and the presence of magnetite which is locally abundant in the intrusive and conglomerate unit. Anomalous gold mineralization has been observed in quartz veins and lenses that are concordant with foliation, and occur in the sheared siltstones that overlie the conglomerates. Additional geologic mapping and sampling is currently being conducted to determine the relationship between the magnetic anomaly in the Las Quintas area and possible association with the gold mineralization.

During 2006-2008 HDG conducted an SP survey within the Basurero concession between the Big Pit and the Placer areas. The results of this limited survey show a strong gradient from minus 100-200 millivolts to positive readings with the zero contour approximating the location of the low angle structure which controls the mineralization in the Big Pit area. The SP indicates that this structure continues to the southeast across the Basurero concession to a location just to the north of the Placer area, which was confirmed by CD-07-016 intersecting a low-angle structure similar to those seen in the holes located in the pit area. As mineralization is controlled in large part by the low angle structure, the SP geophysical results appear to provide a useful method for mapping the structure through alluvial cover.

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