Pimentn

A new Cu-Au porphyry deposit in Farellones

Pimentn Project June 6, 2006

Summary
Exploration was carried out under an LOU between SAGC
and Rio Tinto, signed in March 2005
8 holes were drilled totalling 3891m of diamond drilling
A very well mineralised copper-gold porphyry system was
discovered
Best results include 279m 0.4% Cu - 0.43g/T Au and 70m
0.46% Cu - 0.49g/T Au
Results of exploration programme conducted by Rio Tinto
have added a significant value to the Pimentn project
2

Andean District - Chile Exploration

June 6, 2006

Pimentn

34m @ 0.13% Cu &

0.14g/t Au, from 188m

Legend

136m @ 0.17% Cu &

0.04g/t Au, from 627m

Lithology

Diorite porphyry
Volcaniclastics

1
6

Tuffs

Tourmaline breccia
Alteration
Potassic
Phyllic

Propylitic

Plant

Auriferous quartz veins

Camp

RT diamond drill holes

Other diamond drill holes

Proposed drill holes

86m @ 0.15% Cu &

0.06g/t Au, from 11m

500

Pimentn Project June 6, 2006

Pimentn
Schematic Cross Section
Pimentn Valley

Lithology
Moraine

Valle Hondo

Volcaniclastics

porphyry
Late porphyry
Tourmaline
breccia

34m @ 0.13% Cu &

0.14g/t Au, from 188m

465m

279m @ 0.4% Cu &

0.43g/t Au, from 312m
626m

lt

Intermineral

70m @ 0.46% Cu &

0.49g/t Au, from 100m

685m

Fa
u

Early porphyry

RT diamond
drill holes

Other diamond
drill holes

0
4

Pimentn Project June 6, 2006

500

Intermineral diorite porphyry

Late diorite porphyry

5

Pimentn Project June 6, 2006

Pimentn Hole 4 330m

Cu & Au mineralisation
in potassically altered
early diorite porhyry
0.53% Cu 0.56 g/t Au

Pimentn Project June 6, 2006

Pimentn Hole 6 128m

Early diorite porphyry
with A-veinlets and
chalcopyrite bornite
mineralisation

Pimentn Project June 6, 2006

Early diorite porphyry

Intermineral
diorite
porphyry

Pimentn Project June 6, 2006

Early diorite porphyry

Intermineral Diorite
porphyry
9

Pimentn Project June 6, 2006

Intermineral diorite
porphyry

Early diorite porphyry

10

Pimentn Project June 6, 2006

MODELO GEOLOGICO
PREDICTIVO

Valle Pimentn

Valle Hondo

Lithology
Moraine
6

Volcaniclastics

Intermineral
diorite porphyry
Late diorite
porphyry
Tourmaline
breccia

70m @ 0.46% Cu &

0.49g/t Au, from 100m
(0.8% Cu equivalent)

MODELO GEOLOGICO CON

INFORMACION DE NUEVOS
SONDAJES

34m @ 0.13% Cu &

0.14g/t Au, from 188m

465m

279m @ 0.4% Cu &

0.43g/t Au, from 312m
(0.7% Cu equivalent)

Fa
ult

Early diorite
porphyry

626m
685m

RT diamond
drill holes
Other diamond
drill holes

11

500

Pimentn Project June 6, 2006

Argilica I

Vetas Qz
Au

Leached
Jr

Hm

Argilica-Seric

Epitermal

E.Sec.
Cc/Py

Prfido
Diortico
Tardo - sin
vt qz

Prfido
Diortico
Intermineral

Vt qz A
truncada

Bx
Termal

C
Vetas Au
Esp-Cp

Mesotermal

Sericita
Sericita verde

Calc-Ep
Br act-Qz-Ep-Espmgt

Biotita
Cp(+)

Vetilla B
(Mo)

Biotita-FK-mgt
Stockwork
Vetilla A

Prfido
Diortico
Temprano
Prfido
Diortico
Temprano

Vetillas D
(Py)

Prfido Cu

Cp-Bn

Vt qz A cp

12

Pimentn Project June 6, 2006

Prfido
Diortico
Intermineral

Unidad

Fm.

F
A
R
E
L
L
O
N
E
S

Columna

Litologa

Andesita porfdica
gruesas y afantica
con intercalaciones
brechas volcnicas

B
C

Toba soldada

B
Toba cristalina-ltica

Andesita porfdica,
aglomerados,
areniscas tobceas y
andesita grano fino

13

Pimentn Project June 6, 2006

SONDAJES PIMENTON

8
4
6

2005: 3 POZOS DDH 1.822,9 m

2006: 5 POZOS DDH 2.068,2 m

TOTAL 3.891,1 m
7

Plant

Camp

RIO TINTO
500

PIMENTON

14

Pimentn Project June 6, 2006

CONTROL DE CALIDAD
CONTROL DE CALIDAD DE STANDARD ALTAR 1

CONTROL DE CALIDAD DE STANDARD ALTAR 1

PM-DD-006 PROYECTO PIMENTON

11000
10000
9000
8000

110 0 0

Cu PPM

Cu PPM

PM-DD-004 PROYECTO PIMENTON 2006

10 0 0 0
9000
8000

11

BATCH

RANGO INFERIOR (VALOR 9237P P M)

STANDARD

CONTROL DE CALIDAD DE STANDARD ALTAR 2

PM-DD-006 PROYECTO PIMEMTON

PM-DD-004 PROYECTO PIMENTON 2006

6000
Cu PPM

6000
Cu P P M

6
RANGO SUP ERIOR (VALOR 10007 P P M)

B A TC H

CONTROL DE CALIDAD DE STANDARD ALTAR 2

5000
4000

5000
4000

10

12

RANGO SUP ERIOR (VALOR 5282 P P M)

RANGO INFERIOR (VALOR 4779 P P M)
STANDARD

BATCH

STANDARD

Cu PPM

5000
0
2

BATCH

RANGO INFERIOR (VALOR 4779 P P M)

CONTROL DE CALIDAD DUPLICADO

PM-DD-006 PROYECTO PIMENTON

10000

RANGO SUP ERIOR (VALOR 5282 P P M)

B A TC H

CONTROL DE DUPLICADO
PM -DD-004 PROYECTO PIM ENTON

C u PP M

RANGO SUP ERIOR (VALOR 10007 P P M)

RANGO INFERIOR (VALOR 9237 P P M)
STANDARD

10

11

12

10000
8000
6000
4000
2000
0
1

DUPLICADO PADRE
DUPLICADO HIJO

15

Pimentn Project June 6, 2006

4
BATCH

7
DUP LICADO P ADRE
DUP LICADO HIJ O

SECCION LITOLOGIA-ESTRUCTURA

Valle Pimentn

Valle Hondo

Lithology
Moraine
6

Volcaniclastics

Intermineral
diorite porphyry
Late diorite
porphyry
Tourmaline
breccia

70m @ 0.46% Cu &

0.49g/t Au, from 100m
(0.8% Cu equivalent)

34m @ 0.13% Cu &

0.14g/t Au, from 188m

465m

279m @ 0.4% Cu &

0.43g/t Au, from 312m
(0.7% Cu equivalent)

626m
685m

Fa
ult

Early diorite
porphyry

RT diamond
drill holes
Other diamond
drill holes

16

Pimentn Project June 6, 2006

500

SECCION ZONA MINERAL

Valle Pimentn

Valle Hondo

Mineralisation
Py (<0.1% Cu)
Cp - Py (~0.2% Cu)
Cp > Py - Bn
(~0.5% Cu)
Cp >> Bn
(> 0.7% Cu)

6
70m @ 0.46% Cu &
0.49g/t Au, from 100m
(0.8% Cu equivalent)
279m @ 0.4% Cu &
0.43g/t Au, from 312m
(0.7% Cu equivalent)

34m @ 0.13% Cu &

0.14g/t Au, from 188m

465m

685m

626m

RT diamond
drill holes
Other diamond
drill holes

17

Pimentn Project June 6, 2006

500

ZONA DE ALTERACION

A
P

K
Ca-Na
C

S-C
S

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Pimentn Project June 6, 2006

RESULTADOS DE LEYES Cu - Au
HOLE
PM-DD-004
FROM
83.7

HOLE
PM-DD-005
TO
681.15

LARGE m
597.45

FROM
148.5
259
312
(312) 385
(312) 553
591
600

LARGE m
56
49
279
121
35
37
26

GRADE AVERAGE
Cu%
Au gr/tn
0.28
0.32

INCLUYE

TO
332

LARGE m
263

FROM
69
151

LARGE m
44
20

GRADE AVERAGE
Cu%
Au gr/tn
0.12
0.10

INCLUYE
Cu%
0.30
0.22
0.40
0.44
0.44
0.22
0.23

Au gr/tn
0.31
0.22
0.43
0.46
0.46
0.25
0.25

HOLE
PM-DD-006
FROM
95.5

FROM
69

TO
464

LARGE m
368.5

FROM
100
(100) 106
224
280
388

LARGE m
72
58
34
20
48

Au gr/tn
0.22
0.15

2
8
4

GRADE AVERAGE
Au gr/tn
Cu%
0.23
0.26

Cu%
0.20
0.32

1
5

INCLUYE
Cu%
0.46
0.50
0.21
0.23
0.33

Au gr/tn
0.48
0.52
0.21
0.27
0.43

Plant

Camp

0
3

19

Pimentn Project June 6, 2006

500

Valle Pimentn

Valle Hondo

Mineralisation
Py (<0.1% Cu)
Cp - Py (~0.2% Cu)
Cp > Py - Bn
(~0.5% Cu)
Cp >> Bn
(> 0.7% Cu)

6
70m @ 0.46% Cu &
0.49g/t Au, from 100m
(0.8% Cu equivalent)
279m @ 0.4% Cu &
0.43g/t Au, from 312m
(0.7% Cu equivalent)

34m @ 0.13% Cu &

0.14g/t Au, from 188m

465m

685m

626m

RT diamond
drill holes
Other diamond
drill holes

500

Metraje
Abundancia relativa %
(m) magnetita calcopirita bornita
197
4
2a3
330
2a3
357
3 a 3,5
1,5 a 2 traza
419
3a4
2,5 a 3
575
4a5
1,5
traza

PM-DD-004

20

Pimentn Project June 6, 2006

Leyes
vetillas
Qz
% Cu gr/tn Au
0.27
0.38
B
0.31
0.38
B
0.33
0.31
AyB
0.30
0.40 EB-B-D
0.40
0.47
EB-A-B

Los Pelambres

4000 m.a.s.l

Pimentn

Volcanics and plutons 22-12 Ma

Breccias
K-alteration
10-6.9 Ma
Late porphyries >6 Ma

Disputada

3500 m.a.s.l
Pimentn

Pelambres

Sericite
10.37 +/- 0.19 Ma

3000 m.a.s.l

Secondary Biotite
9.94 +/- 0.14 Ma

Los Bronces- Rio Blanco

2500 m.a.s.l

K-alteration
>5.4 Ma

Volcanics 21-14 Ma

Late porphyries 5.2-3.9 Ma

Plutons 20-7.6 Ma

Lowest extraction level 1983 mts

Breccias 7.3-4.2 Ma

El Teniente

2000 m.a.s.l

Alteration
>4.4 Ma

Volcanics 14-5.6 Ma

Late dykes 3.8-1.8 Ma

Plutons 8-7 Ma Braden Breccia
Teniente Porphyry
4.6-4 Ma

1500 m.a.s.l
Mineralisation drilled to at least 1200 mts

Teniente

22

21

20

18

16

14

Pimentn Project June 6, 2006

12

10

0 Ma

Conclusions and recommendations

A large Cu-Au porphyry deposit was identified in the
Pimentn valley under relatively shallow moraine
This new Cu-Au deposit is one of the most significant
discoveries in the Farellones belt in the last years
Although the Cu and Au grades can be considered
subeconomic at this stage, there is potential for a high
grade core in depth

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Andean District - Chile Exploration

June 6, 2006

Conclusions and recommendations (cont.)

It is recommend to drill a few deep holes in the main
valley to evaluate the vertical extension of mineralisation
Potential resources of several hundreds million tonnes
is thought to be a realistic scenario
Results of exploration programme done by Rio Tinto
have added a significant value to the Pimentn project
and subsequently to their stakeholders

23

Andean District - Chile Exploration

June 6, 2006