Pizon

This is an area of limited historic artisanal mining and lies some 300km NW of Palito. Work programmes involving reconnaissance geochemistry, field mapping and grid-auger drilling together with stream sediment sampling have now been completed. Initial stream sediment screening of an area covering 123,000ha was undertaken, which allowed the Company to prioritise certain areas and has now reduced its land-holding to a single tenement area of approximately 4,700 hectares.

The region has the potential for granite hosted and epithermal style gold mineralisation with significant anomalous areas corresponding to both NW trending structural lineaments and volcanic units. The area is isolated and as a result is garimpeiro free. The results have been highly encouraging with the best catchment anomaly of 15km X 5km containing a 4.02g/t Au, from -80# fraction and multiple >0.5g/t results.

The location of Pizon and its distance from Palito realistically make it low priority for the Company. The underlying geology, and the large stream anomalies could be indicative of a large, low grade, near surface deposit, and this has generated some interest amongst some of the mid-tier gold miners in Brazil.