Exploration is focused principally on discovery and delineation of low sulfidation, Au-Ag epithermal mineralization of the type well documented throughout the Deseado Massif [e.g. White and Hedenquist (1990 &1994), Corbett, G.J. (2001) and Sillitoe, R.H. (1993)]. Mineralization typically comprises banded fissure veins and local vein/breccias characterized by high Au and Ag contents and ratios of Au:Ag generally greater than 1:10. Mineralized veins and breccias consist of quartz (coliform, banded, and chalcedonic morphologies), adularia, bladed carbonate (often replaced by quartz), and dark sulphidic material termed ginguro (fine grained electrum or Ag sulphosalts banded with quartz). Discrete vein deposits, such as at COSE, develop where mineralizing hydrothermal fluids are focused into dilatant structures, producing ore shoots which host the highest precious metal grades. Low sulfidation mineralization can also develop where mineralizing fluids flood permeable lithologies to generate large tonnage, low grade disseminated deposits (e.g. Round Mountain, Nevada; McDonald Meadows, Montana)

Mineralization at COSE is also assigned to the low sulfidation type, based on the presence of fine-grained replacement quartz and adularia, widespread illite alteration, bladed textures indicative of hydrothermal boiling, and a mineral assemblage dominated by marcasite, arsenopyrite and silver-bearing sulphosalts. The presence of anomalous copper and molybdenum associated with high ........

The deposit at COSE is a sub vertical, gold and silver bearing breccia that averages 0.5 m to 4 m in width and dips approximately 75° to the southwest. The interpreted ore shoot has a strike length of about 35 m, with a down dip extension of approximately 170 m. The preliminary estimate of undiluted resources is 34,000 tonnes.

The proposed method for mining the COSE deposit is mechanized cut and fill, where 3.0 m x 3.0 m access drifts to the ore are developed every 9 m, vertically, off of the access decline. Once a mining cut (3 m high, the length of the deposit) is completed, it is backfilled with un-cemented, screened, mine development waste rock, or possibly waste rock derived from the surface near the mine portal. The development waste rock will be hauled out of the mine and stored close to the access portal. 20-tonne ore haulage trucks are proposed to carry the backfill back into the mine.

Since the deposit is very small (about 34,000 tonnes undiluted), a production rate of 120 tonnes per day (3,600 tonnes per month has been estimated.

Small, epithermal vein/breccia pipe deposits are typically very irregular in both the vertical and horizontal directions. As the vein widens (> 4 m), there is generally less irregularity, and the effect of wall rock dilution is diminished substantially. However, at COSE, the deposit widths generally vary from very narrow (0.5 m) up to 5 m, with occasional wider areas.

The use of more productive s ........

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