Plomosas Mining District

Summary

Over 3000-acre group of claims and ongoing operation with a 100 ton/day capable mill and underground equipment. Have drilling counts with an independent certified Canadian consultant report, as well as a NR 43-101 report, lead-zinc reserves as well as gold/copper credits in adjacent claim, with metallurgy ready for use on actual mill.

More info available at: http://www.thefeinstone.com/plomosas.htm

The Diamond drill program carried-out in 2000 was considered a preliminary stage of a scheduled exploration program.

1,306 meters in 8 holes were drilled, exploring the “Manto Plomosas” along 1.5 km although basically 6 of them were drilled in a central segment of 400 m of length between 1000 and 1150 m.a.s.l.

The program was designed based on geology in detail, gravity data and integral interpretation.

The drilling confirms the presence and continuity of Manto Plomosas hosted by conglomeratic and fossiliferous limestone with intersections from 21.95 m to 58.25 m (average=35 m). With sphalerite and galena disseminated; assays results shown presence of Zn-Pb (already of 1%Zn and 0.3%Pb).

A small model can be constructed from geological data collected during drilling: marbleization can see on core focused in the central part which is more intense at depth and associated with Manto Plomosas in 3-D including Mn and organic material halo.

Localization

The Plomosas Mining District is located in northern Mexico in the NE part of Chihuahua State, 115 kilometers NE of Chihuahua city.

Access from Chihuahua city is via Highway (90 km) and dusty road (20 km) 1.5 hours driving time.

The infrastructure (logistic and facilities) can be considered good.

History

The district was discovered in 1832

exploited by Asarco from 1952 to 1981 (1.5 million tons @ 16% Zn, 8% Pb and 60 g/t Ag)

In 1995 6 reverse circulation holes were drilled

In 2000 8 Diamond drill holes were drilled.

Currently Retec Guaru exploits the Juarez Ore body at the rate of 70 tonnes per day @ 17% Zn, 3% Pb and 60 g/t Ag and controls the district (100%)

Plomosas Property

The ore deposit is an intrusion-related distal replacement type associated with important thrusting.

Zinc and lead are disseminated, the mineralogy is simple: iron poor sphalerite and silver poor galena in calcite, barite and quartz.

The control on mineralization is lithological and structural with high grade concentrated in steep fault structures N-NW/S-SE.

The ore deposit Is considered as world class type.

Geophysics Gravity

• Based on the geometry of the structures and the grades obtained for the chip sampling it maybe assumed that the Plomosas and Juarez Mantos are part of the same geologic system, although, they appear to sit at different stratigraphic levels. The operators of the Juarez mine referred to other prospects of lead-zinc mineralization, in the district, that were farther to the south (i.e. Mexicano and Alfosito). These other prospect would represent other Mantos that would require follow up exploration programs of their own.

• In examining mapping complied by North (see map), they identified approximately 1.7 Km of prospective stratigraphy for Zn-Pb-Ag mineralization. If we use the chip sampling data of the Plomosas structure above and assume an average width of 2.0 m and a down dip extension of 200 m, the following Resource Potential can be estimated.

Length (m)     Width (m)     Down Dip Extension (m)     SG      Tonnes      $/Tonnes      Metal Value
1700              2.0                         200                        3.5    2,380,000     $162.33        $386,345,400

Plomosas Mantos

• Located 7.0 km south, up (or down, the stratigraphic facing is unknown) sequence from the Juarez Mantos, i.e. Plomosas appears to be at a different stratigraphic level than Juarez.

• Oxidized lead zinc material with rare Zn Carbonate locally.

• The geometry of mineralization observed on surface appears to be similar to Juarez Mantos, i.e. flat laying structures that pinch and swell between 1 to 3 metres wide (see photo).

• Several samples were collected (#177063- 177064, 177067-177068, 833014-833015 see Appendix 1.0 for results) and sent to ALS-CHEMEX lab in Chihuahua Mexico for analysis.

• 177067-177068 were systematic chip samples taken across the Plomosas stratigraphic sequence. Sample #177067 represents the Hanging-Wall, where as #177068 represents the main Plomosas Mantos (see photo).

• Results for the main Plomosas Mantos are as follows: 6.86 gpt Ag, 7.00% Zn, 0.44% Pb @ $162.33 pt or 3.69 % Cu equivalents. These values are similar to results obtained for the Juarez stock pile and suggest that these two systems may be related.

• The Plomosas area is comprised of a sequence of limestones, shales, conglomerates and sandstones of upper Palaezoic, at the top of the stratigraphic sequence exposed in the area consists of volcanic rocks of Miocene age.

The stratigraphic units at Plomosas strike roughly NW to N-NW, and dip moderately to the NE. This attitude was produced by thrusting Permo-Triassic with vergence to SW and by faulting in half-graben or tilting during Miocene.
All stratigraphic units are disrupted by a number of high-angle cross-faults of minor displacement associated with mineralization.

The mineralization with the best potential is hosted by conglomeratic and fossiliferous horizon with typical dimensions of 2000 m in length, 135 m (thick) and depth unknown.

The ore deposits occurs in stratabound shape (Manto Plomosas) following foliation plans and bedding along the favorable unit with 35 meters width.