History:

Selective artisanal mining on the property was carried out in the past, probably more than 50 years ago. There are at least 2 different areas on the property where artisanal mining occurred and it was done from surface cuts, shallow stopes and is mainly exploratory in nature. Kennecott staked a concession over the zone of hornfels that occurs in the northwest part of the concession in 1998, but the concession was abandoned shortly thereafter and declared open ground in November of 2002. Golden Minerals (Minera de Las Cordilleras) staked the ground that comprises the La Buena project and received title to the concession in June of 2007. Their exploration effort consisted of limited reconnaissance rock-chip sampling.

Mineralization:

On the La Buena property, prospect pits and shallow workings have been found on chimneys in reef limestones, in structures in hornfels, and in structures in Tertiary intermediate subvolcanics. The Cupido Formation hosts the chimney-style mineralization and Caracol Formation as well as subvolcanics host mineralized structures. Limited sampling of the dumps and workings found on the La Buena property has returned gold assays as high as 3.67 grams per tonne gold. Since alluvium covers roughly half of the surface area of the La Buena property, there is potential for discovering covered mineralization similar to that at the Peñasquito mine.

Property Geology:

Shallow alluvium covers nearly half of the La Buena property; however Caracol Formation dominates the property geology. The same shelf carbonates that host ore in the Zuloaga, Noche Buena, and Providencia districts are found at the north end of the La Buena property along the hinge-line of an anticline that forms a prominent ridge called the Sierra de Zuloaga. Subvolcanic pyrite-rich monzonitic intrusives occur a few kilometers south of there at Cerro de Los Potrorillos, forming a halo of hornfels in the local Caracol Formation.