Lucero

Prospective for: Gold/Silver

Location:

The Lucero property is located in the Chila Range of southern Peru, is approximately 130 kms northwest of the city of Arequipa and 600 kms southeast of Lima. The property is in the Chachas District, Castilla Province of the Department of Arequipa, about 22 kms southeast of Buenaventura's Orcopampa mine.

Ownership:

The 21 sq km project was acquired by staking and is 100% owned by Condor.

History:

The Lucero property covers what is known as the Shila Mining Camp, which includes several precious metal vein mines, of which the Sando Acalde, Pillune and Apacheta-shila were among the better known. These rich veins were most recently worked by Buenaventura, who were extracting ore until 2006, and processing it at a small plant east of the concessions. Signs of older workings indicate that the gold veins were known from well before, and were likely worked in colonial times.

Previous mining has been based on low sulfidation vein deposits. There are large epithermal alteration zones and gossans on the property, but to the best of our knowledge only the veins having been exploited.

Geology/Mineralization:

High grade 'bonanza-style' direct shipping ore was mined here in the past from low to intermediate sulphidation quartz-carbonate (rhodochrosite) massive sulphide veins. Lucero is one of many areas of low-sulphidation epithermal Au-Ag deposits hosted in Tertiary volcanics of the Central Andes Cordillera of southern Peru.

Recent activity:

Preliminary evaluations of the property by Condor's exploration team comprised prospecting the property and sampling other veins and structures, including the surface areas surrounding the above-mentioned former producing mines. Dr. Richard Culbert, Condor's Qualified Person, visited Lucero and his sample results were consistent with Condor's sample results, in that the grades were as expected for a property that has supported mining via direct ore shipping. Comparison of Dr. Culbert's sample results with Condor's sample results also shows nugget effect.

The following table was prepared by Dr. Culbert:

Sample
g/t Gold
g/t Silver
Notes
Culbert 1
1.76
224
Sando Acalde ore sorting dump
Culbert 2
Condor 5706
17.2
0.2
969
14
Sando Acalde vein on surface
Culbert 3
Condor 5708
1.17
1.70
95
197
Quartz vein at 802120 East, 8293450 North
Culbert 4
Condor 4709
33.8
43.2
519
437
Pillune area, vein above old tunnel
Culbert 5
Condor 5710
2.3
2.3
74
68
Same area as Culbert 4, different vein
Culbert 6
Condor 5655
5.9
25.0
23
76
Calcite-pyrite vein at 802215 East, 8295638 North
Culbert 7
2.8
7
Vein float composite at 800625 East, 8297125 North
Culbert 8
32.2
3500
Baratina area, 3 small veins with sulfides, 801120 East, 8296890 North
Culbert 9
Condor 5715
30.1
33.4
842
860
Baratina veins
Culbert 10
Condor 5828
6.1
1.8
22
6
Baratina veins
Culbert 11
17.5
498
Baratina area, 801015 East, 8296885 North
Culbert 12
0.4
62
Pyritic material from shaft on no. 8 vein
Culbert 13
0.1
9
Siliceous sample from no. 8 vein. 801573 East, 8296825 North
Culbert 14
0.6
36
Similar to Culbert 13


During the preliminary prospecting work, an epithermal high sulphidation alteration zone with low sulphidation structures was identified on the property, and returned peak sample values of 33.4 g/t Au and 3,500 g/t Ag. This alteration zone, measuring approximately 1300m by 1400m in size, exhibits no evidence of prior sampling or drilling and is believed to host potential for a bulk tonnage disseminated gold-silver deposit.

Update:

Condor believes that potential remains for the discovery of additional high grade ore shoots in the 3 former producing mines, and in the numerous other veins and structures located on the property. In addition, the newly identified 1.8 sq km disseminated bulk tonnage target is considered highly prospective and will be given priority in an upcoming prospecting, sampling, and mapping program at Lucero.