Table of Contents:
-Introduction
-Background
-Important Geologic, Alteration, Mineralization And Geochemical Zoning Features
In Vertical Cross Section
-Discussion
-Conclusions
-Proposed Drill Program
-Useful References
-Exploration Model Summary

List Of Tables:
Table 1 - Geochemical Analytical Results - Surface Samples
Table 2 - Geochemical Analytical Results - DDH-EK-99-02 - HQ Core
Table 3 - Geochemical Analytical Results - DDH-EK-01-11 - NQ Core
Table 4 - Geochemical Analytical Results - DDH-EK-99-02 – Sludge
Table 5 - Geochemical Analytical Results - DDH-EK-01-11 – Sludge
Table 6 - Length and Features of Mapped Mineralized Zones
Table 7 - Comparison of Eskapa, El Indio-Tambo, Choquelimpie

List Of Figures:
Figure 1 - Map of Igneous Belts/Ore Deposits - Cordillera Occidental
Figure 2 - Schematic Cross Section - Geologic Setting High-Sulfidation/Acid-Sulfate System
Figure 3 - Location of Target Mineralized Zones
Figure 4 - Base Cross Section
Figure 5 - Geologic Cross Section
Figure 6 - Alteration Features In Section
Figure 7 - Distribution in Cross Section of Au, Ag, and Tl
Figure 8 - Distribution in Cross Section of Cu, Pb, and Zn
Figure 9 - Distribution in Cross Section of Hg, As, and Sb
Proposed Holes 1 Through 8

Introduction – A review of the geologic features and geochemical data from drill hole DDH-EK-01-11 has been completed and integrated with similar information from nearby, more-shallow, drill hole DDH-EK-99-02, geologic mapping of the surrounding area, and analytical results of surface rock-chip sampling.  The section line through the holes is positioned across the southeast end of mineralized Zone III in the eroded-out core zone of the Cerro Eskapa stratovolcano (Figure 3).   A series of cross sections have been assembled which well-depict changes with depth of the spatial relationships of geologic features, intensity of alteration, and pathfinder- and base-metal zoning to gold-silver-copper-bismuth-antimony mineralization disclosed by the two holes (see Figures 4 through 9).  A more in-depth technical report influenced by the recent drilling results, detailed re-mapping of geologic features of the eroded-out stratovolcano core zone, review of geochemical analytical results of surface rock-chip samples, and re-interpretation of IP surveys has been compiled into a Form 43-101F1 technical report which will be filed with the BC Securities Commission.  This report will be available for examination by parties who have an interest in participating in financing the continued exploration of the property.

Background – Core hole DDH-EK-01-11 was drilled September-October (2001) and successfully completed a deeper test through mineralized vuggy silica rock intersected at shallow depth by DDH-EK-99-02 several years earlier in March, 1999 (see pertinent previous news releases 8-99 and 25-01).  Both holes were drilled angled at -65^o and in the same line of direction (N55^oE), which is perpendicular to the surface outcrop trace of the vuggy silica rock occupying the central part of mineralized Zone III.  The original exploration interest in this sector is the high-grade silver (to 2259.5 g/mt) occurrences of stephanite and other silver-lead-antimony sulfosalt minerals in outcropping vuggy silica rock (see news release 6-99).  Core recoveries were overall excellent (>95%) in both holes.  DDH-EK-99-02 made a shallow intersection (140 meters vertical depth) of the mineralized zone and DDH-EK-01-11 penetrated the zone at much greater depth (400 meters vertical depth).  Although there is some hole drift (i.e. DDH-EK-01-11), for practical purposes, the two drill holes can be presented within the same plane of vertical section

Important Geologic, Alteration, Mineralization And Geochemical Zoning Features In Vertical Cross Section –

(1) Tracing the vuggy silica zone from surface outcrops down through the two drill hole intersections of DDH-EK-99-02 and DDH-EK-01-11 demonstrates a nearly vertical attitude (very steep southwest dipping) at this location, and a down-dip continuity to great depths (>500 meters - open ended)   with little fault disruption (Figures 4 and 5).  The width over which the vuggy silica rock is developed and outward extent of surrounding halos of alteration and anomalous base metals gradually increase with depth from several meters at the surface to over 12 meters with depth in DDH-EK-99-02.  Below the latter intersection, the vuggy silica rock appears to bifurcate from a single body into numerous closely spaced, prominent strands distributed over a true width of 30 meters.

(2) Surface outcrops and the drill intersection of DDH-EK-99-02 show that ore mineralization is restricted to the centrally positioned vuggy silica rock at shallow levels.  Marked changes in mineral composition and character of ore mineralization occur with depth from moderate- to high-grade, silver-lead-antimony sulfosalt at shallow levels, which is more diffuse (disseminated/vug and fracture infillings), downward into discrete intervals of veins, veinlets and associated dense disseminations of gold-bearing, high-grade, copper-silver-antimony-bismuth-mercury sulfide/sulfosalt intersected in DDH-EK-01-11 (Figures 6 and 7).  The latter veins and veinlets cross cut the footwall, vuggy silica rock strands and are considered to be late-stage or secondary in nature.  Review of analytical results shows downward increase in copper, gold, silver bismuth, and antimony values (Tables 1, 2, and 3).  No systematic investigation to identify the sulfide and sulfosalt mineral assemblages has yet been undertaken of drill-intersected mineralization.  The high amounts of copper, silver, antimony, bismuth, mercury, and some arsenic intersected in DDH-EK-01-11 do suggest the presence of enargite-luzonite (family) and/or various copper-antimony-silver sulfosalt or sulfide minerals, bismuthinite, and mercury-bearing sulfide and sulfosalt minerals.  Significant gold values reflect possible occurrence of gold-telluride minerals and/or native gold-electrum.  Locally common, trace amounts of other minerals observed in vuggy silica above the veins include: orpiment and native sulfur.

TABLE 1 -      GEOCHEMICAL ANALYTICAL RESULTS OUTCROP CHIP SAMPLES ALONG/NEAR MINERALIZED ZONE III VICINITY OF DDH’S EK-99-02 AND -EK-01-11

TABLE 2 -      GEOCHEMICAL ANALYTICAL RESULTS- DDH-EK-99-02 VUGGY SILICA ROCK
                        INTERCEPT SPLIT HQ CORE