LA AFRICANA

No exploration work was conducted on the Africana property in 2008.

No exploration work was conducted on the Africana property in 2007.

The company has has completed the initial phase of surface and underground sampling on the property. The results indicate potential economic mineralisation over a much wider disseminated zone than initially envisaged. Previously the high-grade epithermal vein at La Africana was mined using conventional mining methods. If further systematic exploration is consistent with the results from this initial phase then the project may be amenable to underground bulk mining. During the first half of 2006, Arian’s technical team accessed and rehabilitated the underground workings of the La Africana mine to sample the Africana vein system. In addition, they surveyed the underground workings to assess the potential of the vein and to establish the extent of the mine workings in order to determine the optimum collar location of proposed drill holes. The survey identified workings extending from surface to the water table (at ~60metres (m) depth), and a horizontal extent of approximately 100m. There are a number of prospects along a 250m strike length of the structure but there are no historical production records for the property. At La Africana samples were taken from the main vein and from the altered, iron oxidestained country rocks to determine the average grade and thickness of the vein to ascertain whether it carried economic silver values over a mineable width. Samples of the wall-rock were also taken to ascertain whether there is silver and other metals present, which may indicate the presence of disseminated mineralization that may be amenable to wider underground mechanized mining using Load-Haul-Dump (LHD) equipment.