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Chanate North area

In the Chanate North area, W-NW structures from the El Chanate Mine property appear to project onto the property in an area where there is little outcrop exposure except along the arroyos and washes. Rock chip samples collected by Highvista from this area during 2010 show gold values up to 2.13 g/t Au. The mineralization at the El Chanate mine occurs primarily along the W-NW San Jose fault and where it intersects a low-angle structural fault zone that is an ideal host for gold mineralization. The El Chanate ore zone is characterized by abundant quartz veining parallel to the W-NW structural zone and in tensional quartz veins that strike to the northwest. In addition, there are erratically distributed arrays of high-angle quartz veins and sulfide hydrofractures that strike E-NE to E-W within this zone. The direction of these features and compressional character to mineralized structures suggest a late Mesozoic or Laramide age to mineralization. The presence of light-coloured dikes intruding the San Jose fault zone, several kilometres to the southeast, suggest a possible genetic relationship between these intrusives and mineralization. The dikes, however, are cut by gold-bearing quartz veins and appear to be auto-altered, resulting in a crumbly, sugary textured mass of granulated quartz. It has been reported that where the dikes are relatively fresh, they are distinguishable as a feldspar porphyry with rare visible white quartz grains (Clarke, 2005). Gold mineralization is likely to occur along structural trends that project from the El Chanate mine onto the Canasta Dorada property.

View from the Chanate North target area of the property looking southeast along strike of the dominant NW structural trend at the adjacent El Chanate mine.

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