SAN JORGE PROJECT

EPITHERMAL LOW SULPHIDATION VEINS (Au Ag)

YUNGAY ANCASH
PERU
SOUTH AMERICA
2009
SAN JORGE PROJECT GENERAL INFORMATION

San Jorge project is located in Ancash region, Yungay province of North Central
Per at 4700 m.a.s.l. It lies 9 Km in straight line to the North of Esperanza Silvers
Bonanza Au-Ag San Luis Project; 25 Km to NW of Barricks Pierina Mine and 5 Km
SE of Pallcamachay porphyry prospect.

Accessibility is very good from Carhuaz city along a province road in 2 hrs driving (50
Km aprox). The road reaches to the NE corner of the project.

Mining property consists of 500 has in Redimida 1 claim under Werner Warscheids
name, 100% controlled by Quippu Exploraciones. Redimida 1 is connected to the NW
with 1100 has of concessions of Pallcamachay project also controlled by Q-Ex.

This exploration summary is mainly based on very limited exploration field work of
previous project operator conducted during 2008, as well as Quippus and third
parties info collected during old reconnaissance work and property field visits.

2
SAN JORGE LOCATION & GEOLOGICAL SETTING
180000
180000
180000
180000
180000
180000m
180000m
180000
180000mm
m
mE
mE
m
m E
EEE
EE
E 190000
190000
190000
190000
190000m
190000
190000
190000
190000m
mm
mE
mE
m
m
m E
EEE
EE
E 200000
200000
200000
200000 m
m
200000m
200000
200000
200000
200000 m
m
mmE
mE
m E
EEE
EE
E 210000
210000
210000
210000 m
210000m
210000
210000
210000
210000mm
mE
mE
m
m
m E
EEE
EE
E 220000
220000
220000
220000 m
m
220000m
220000
220000
220000
220000 m
m
mmE
mE
m E
EEE
EE
E

m
m
m
9000000m
9000000
9000000m
mmNN
mN
m
NNN
N
NN
Cordillera Blanca
Batholith
9000000
9000000
9000000
9000000
9000000
9000000

8990000
8990000
8990000
8990000
8990000
8990000
8990000m
8990000
8990000
Cretaceous Sedimentary Basement San

m
m
m
m
m
mN
m
mNN
NNN
N
N
NN

NN
NN
N

N
mN
m
mN

Jorge
m
m
m
8990000m
m
m
8990000
8990000
8990000
8990000
8990000
8990000
8990000
8990000

8980000
8980000
8980000
8980000
8980000
8980000
8980000m
8980000
8980000
Neogene Volcanics

m
m
m
m
m
mN
m
m
NN
NNN
N
N
NN

NN
NN
N

N
8980000
8980000
8980000
8980000
8980000
8980000
8980000
8980000
m
m
m
8980000m
m
mmN
m
mN

Pallcamachay

8970000
8970000
8970000
8970000
8970000
8970000
Rio Santa Fault System

8970000
8970000m
8970000
m
mm
m
m
m
m
mN
N
NN
N

N
NN
NN
N

NN
NN
mN
N

N
8970000
8970000
8970000
8970000
8970000
8970000
8970000
8970000
m
m
m
8970000m
m
mm
m

San Jorge

8960000
8960000
8960000
8960000
8960000
8960000
8960000m
8960000
8960000m
m
m
m
m
mN
m
mN
NN
N
NN
N

NN
NN
NN
N

N
mN
m
mN
m
m
m
8960000m
m
8960000
8960000m

Calipuy Miocene Volcanics

8960000
8960000
8960000
8960000
8960000
8960000

Coastal Batholith
N
N
mN
NNN
NN
N
m
m

180000
180000
180000m
mm
mE
EE
EE
E 190000
190000
190000m
mm
mE
EE
EE
E 200000
200000
200000m
m
mmE
EE
EE
E 210000
210000
210000m
mm
mE
EE
EE
E
m
m
m

180000
180000
180000 m
m 190000
190000
190000 m
m 200000
200000
200000mm 210000
210000
210000 m
m
m
m
0m

180000
180000
180000mm
mEEE 190000
190000
190000mm
mEEE 200000
200000
200000m
mmEEE 210000
210000
210000mm
mEEE
00
00
00
0
00
0
0

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SAN JORGE PROJECT LOCATION IN DETAIL

To Carhuaz
San
Jorge

9 Km

San Luis Deposit

To Pierina

4
SAN JORGE CONCESSION AND ACCESS ROADS

Redimida 1

5
SAN JORGE VEINS

3 m wide vein in fault zone

6
SAN JORGE VEINS

2.5 m multistage qz +
Fe ox vein

7
ESPERANZA SILVER / SILVER STANDART
SAN LUIS DEPOSIT VETA AYELEN

AYELEN VEIN
(7m/64.8 gptAu/1875 gpt Ag)

Source : Arstides Chvez

Lpez, Esperanza Silver -
PROEXPLO 2007

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 SAN JORGE ORIGINAL 2007 YEAR VEIN MAP

MINESSOTA VEIN, 2.3m @ 3.6 g/t Au, 915 g/t Ag

4 ,7
897
897
00

8970500
8970500 mN
mN
8970500 mN
8970500

mN
4,400
LABARI VEIN, 1.3 m @

4,
75

8970000
0.43g/t Au, 46 g/t Ag

8970000 mN
0
mN
8970000 mN

0
45
8970000

4,

mN
PRIMOGNITA VEIN, 2m @ 0.27 g/t Au, 235 g/t Ag
4,
35
0
0
4 ,7 5

4 ,8 00

CHUNTA VEIN, 1.5 m @

8969500
8969500 mN
mN

0.33 g/t Au, 74 g/t Ag

8969500 mN
4,700
8969500

4,

mN
4,600
75
0

,7 50
50

4
4 ,6

4 ,3 00

8969000
8969000 mN
50
4 ,5

4 ,7
0
50
mN
8969000 mN

00
4,

0
55
4,
8969000

mN
4 ,6
50
4 ,6 00

4,
65
0

4 ,2
50
1 KM
mN
00 mN

0
188500 mE
188500 mE 189000 mE
189000 mE 189500 mE
189500 mE 190000 mE
190000 mE 190500 mE
190500 mE 191000 mE
191000 mE 191500 mE
191500 mE 192000 mE
192000 mE 55 1930
1930
4,

00
,6
4
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 SAN JORGE MAIN VEINS
INCLUIDED RESPECTIVE WIDHTS
N

1
2
1.1
0.5 5
3

2
1.6
Colluvial cover 0.6
1.
3
2.2 2. 2 1.3
1
2
2.3
2
0.5 2
0.5
0.9
5.2 1.4 1.5
6.1
0.7
1.8

1 Km

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 SAN JORGE NEW Ag ROCK GEOCHEM
N

1.4 m @ 428 g/T Ag

1 Km

11
SAN JORGE NEW Au ROCK GEOCHEM
N

0.7 m @ 7.92 g/T Au

1 Km

12
SAN JORGE NEW As ROCK GEOCHEM
N

1 Km

13
 SAN JORGE NEW Sb ROCK GEOCHEM
N

1 Km

14
 SAN JORGE RTP MAGNETIC MAP + Ag
RESULTS
N

Magnetic Low associated to silicic alteration of veins

1 Km

15
 SAN JORGE PROJECT EXPLORATION
HIGHLIGHTS (1)
San Jorge project shows surface evidences of a Low Sulfidation Epithermal Au-Ag
vein deposit similar to San Luis LS Bonanza Au-Ag project.

Host rock are andesitic to dacitic volcaniclastic breccias, flows and dikes of Miocene
Calipuy Volcanics.

Mineralization is hosted in around 15 main veins and breccias. Vein widths range
from 0.1 to 10 m (1-3 m average) and individual vein lengths have been continuously
traced up to 450 m. All veins disappear under colluvium to the West and East of
sampling sites, but extended lengths can be in excess of 2 Km. Stockwork zones are
also present in structural intersections.
Massive, banded chalcedonic and porous quartz are present in veins. Disseminated
pyrite and trace Acantite is observed in chalcedonic qz, whereas OxFe fractures and
barite can be observed crosscutting massive quartz.

Alteration assemblages associated to veins include silicification with illite-clay

envelopes. A detailed magnetic survey on the project area indicates an outstanding
magnetic low coincident with high intensity of veining.

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 SAN JORGE PROJECT EXPLORATION
HIGHLIGHTS (2)

Sampling consisted in random channel-chip samples across main veins and rock-
chip samples on their wall rocks. A total of 83 samples have been taken in several
reconnaissance works within the property.
Highest gold value is 7.92 g/t Au and silver is 915 g/t Ag. Gold and Silver
mineralization is associated to high anomalous As-Sb-Pb-Zn.

A first conservative approach of the economics of the project can be estimated

considering only 5 of all 15 identified veins @ 2 m width, 1Km length and 100 m
vertical extension would yield 2.2 Million metric tons of ore. We estimate that, as in
San Luis Deposit, the favorable horizon for bonanza Au-Ag grades starts on surface
at 4550 level, in San Jorge, we could find it 100-150 m below the present surface
level (4700m level).

Further exploration work will require systematic channel vein sampling on each vein
outcrops and trenches at vein extensions. Bulk mine able potential is open within
underlying more permeable host rock horizons. A fence oriented drilling program will
finally define a project resource.

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For further information, please contact us:

Quippu Exploraciones SAC

Cl. Bolognesi
Santiago de Surco (L 33)
Lima - Per
Tel.: (51 1) 435 0657

Web Site:
www.quippuexploraciones.com

Daniel Escobar Belevn

General Manager
descobar@quippuexploraciones.com
Cel.: (51 1) 999 622 475 / 992 747 346

Werner Warscheid
Director Manager
wwarscheid@quippuexploraciones.com

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