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LA BRECHA PROJECT

Commodity: Au-Ag

Location:
La Brecha Project is located 7 km to the South from Los Menucos town, on Río Negro province. The mine property covers a surface of 2,700 hectares.

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Geology
The regional setting belongs to the geological province of the Nordpatagonic Massif. The most important unit, by its metallogenic implications, is given by a volcanic event characterized by flows and intrutions called Los Menucos Complex and it is constituted by rhyolites, dacites, andesites and their associated pyroclastic rocks.

Local Geology
A hydrothermal breccia dike of E-W strike was detected in the explored sector. This structure form part of a major regional structure very evident in the satellite images.
Vein structure has a continuous extent over 3,000 meters with an average width over 40 meters while in some areas it reaches more than 100 meters. Cº El Guacho is located at 3,000 meters on the North of La Brecha structure. On Cº El Guacho there is an inclined layer with 35 meters width and it is composed by light-blue massive silica. This bed is pierced by a stockwork system of veins and veinlets of quartz chalcocedony and filled with red microcrystalline silica.

Geochemistry
On the explored area an expeditious sampling was done, from it 13 samples were taken but they did not reveal any anomalous values in precious metals. Only one sample from Cº Guacho stockwork showed gold anomalies (196 ppb). However, the textures evidences (colloform - crustiform, bladed, etc.) recognized on the main structure of La Brecha and on the stockwork zone of Cerro Guacho, indicate us that we are on the upper zone of a low sulfidation epithermal system.
Geophysics
Trendix decided to extend the exploratory works through geophysics studies. In January 2005, Area Geofísica Eng.S.A Company made an electromagnetic survey of variable frequency (EFV), followed by a magnetometric exploration in almost all the mine property’s surface.

Studies carried out by different prospecting companies in Los Menucos district, have determined that the mineralization is associated with the existence of rhyolitic domes and developed above these intrusive bodies. The geophysics study done on the project, would be suggesting this idea as it was detected the existence of a belt of resistant rocks (rhyolitic domes?) and above these strong anomalies it shows metallization. This belt is situated between Cº Guacho and La Brecha structure, on an area of 1,500 meters wide and 4,500 meters long.

Conclusions
The expeditious geochemical results had not revealed any significant value of precious metals. Nevertheless, these circumstances are not decisive as there are possibilities for these metals to be deposited in depth.

On Cerro La Mina, located 3 km to the North of La Brecha property, were found significant values of Au under the surface bed of hydrothermal kaolin. In the sector between both projects is possible to deduce the existence of silicified and kaolinized outcrops hidden by a modern sedimentary covering. That situation was also confirmed by the geophysical prospection developed between Cerro El Guacho and Cordon de La Brecha.