June 30, 2005 The province of Rio Negro voted to ban the use of cyanide within the province. Following this ban,
work was stopped on the Los Menucos project and no further work is planned.
In the first half of 2005, the company completed 1,700 m of drilling with disappointing results.
In 2001, exploration work focused on the 20km by 10km Abanico alteration zone. Detailed mapping and geochemical sampling showed that the Cerro Abanico and Cerro La Mina targets warranted drill follow-up. Subsequently, a joint venture agreement was signed with Companhia Vale do Rio Doce (“CVRD”) on the Cerro Abanico target. A total of 3,600m of core and RC drilling was undertaken to test gold and base metal anomalies. The drilling showed that the system was eroded to a depth below the favorable elevation for epithermal gold mineralization and CVRD withdrew from the project.
March 31, 2001 1,800m of a planned 3,500m diamond and reverse circulation drill program om the Cerro Abanico had been completed. The best results received were 4.5m averaging 6.8g/t of gold and 270g/t of silver; and 9.3m averaging 1.7 g/t of gold and 40 g/t of silver.
In 2000, reconnaissance and detailed exploration work were completed.
January 31, 2000 Regional geochemical data, released by the provincial geological survey confirmed gold occurrences on the property.
In 1999, Los Menucos epithermal gold district in Rio Negro Province was recognized.