SAN MARTIN

Prospective for: Bulk tonnage Silver/Gold

Location:

San Martin is located in the province of Castilla in the department of Arequipa, approximately 1,350 km southeast of the city of Lima and 7 km southeast of the Orcopampa gold mine, at elevations ranging from 4500m to 4800m. Access is by a 195 km unpaved public road which connects to the Pan American highway. Arequipa, the closest major centre, is approximately 160km SE of San Martin, and is accessible via 320 km of public road.

Ownership:

The 4 sq km San Martin Project is 100% owned by Condor.

Previous Work:

The San Martin epithermal sediment hosted precious metals discovery has no recorded history of prior sampling or drilling before Condor's work.


Geology/Mineralization:

The property is hosted within the Orcopampa-Caylloma precious metals belt of south central Peru and is underlain by Cretaceous-aged quartzites which have been hydrothermally brecciated and strongly silicified over an area observed in outcrop of 700 by 100 meters. The silicified breccia matrix and clasts include silica-barite and iron oxides along with patches of abundant fine grained grey sulphides and disseminated pyrite.

Recent activity:

During August & September 2011, the Company conducted reconnaissance mapping, and rock and soil sampling at San Martin. A total of 236 samples were taken during this period, of which 186 were taken from the 700 x 100m exposed breccia area noted above. In the latter part of September, an IP/Resistivity geophysical survey was completed at San Martin. Preliminary results confirm a correlation between the hydrothermal breccias and high resistivity near surface due to the presence of oxidation, followed by high chargeability to a depth of 200m due to the suggested presence of sulphides.

An initial drill program commenced in the latter part of November 2011, and finished in the last week of April 2012. The drill program consisted of 2,001m of diamond core drilling in 10 holes, and was designed to test the 700m x 100m exposed breccias.

Summary results for holes SMA-001 to SMA-008 are reported below, and include near surface intervals of 14.9m grading 68.7 g/t Ag in SMA-001, 12.1m grading 63.9 g/t Ag in SMA-002, 7.9m grading 72.0 g/t Ag in SMA-006, 12.6m grading 48.6 g/t Ag in SMA-007, and 9.3m grading 64.7 g/t Ag in SMA-008.

SMA-001
From (m)
To (m)
Interval (m)
Ag (g/t)
Au (g/t)
 
including
1.50
5.80
16.40
11.30
14.90
5.50
68.7
135.1
0.09
0.15
 
SMA-002
From (m)
To (m)
Interval (m)
Ag (g/t)
Au (g/t)
0.90
7.05
6.15
25.0
0.54
43.90
56.05
12.15
63.9
0.12
 
SMA-003
From (m)
To (m)
Interval (m)
Ag (g/t)
Au (g/t)
3.20
6.60
3.40
12.70
0.04
35.50
41.70
6.20
21.96
0.04
 
SMA-004
From (m)
To (m)
Interval (m)
Ag (g/t)
Au (g/t)
 
6.10
9.40
3.30
16.37
-
85.50
92.00
6.50
11.76
0.10
 
SMA-005
From (m)
To (m)
Interval (m)
Ag (g/t)
Au (g/t)
 
7.60
13.00
5.40
24.09
-
 
56.80
63.20
6.40
18.53
 
 
SMA-006
From (m)
To (m)
Interval (m)
Ag (g/t)
Au (g/t)
including
2.90
7.70
10.80
8.80
7.90
1.10
71.97
253.00
-
-
 
SMA-007
From (m)
To (m)
Interval (m)
Ag (g/t)
Au (g/t)
including
8.60
14.15
21.20
18.30
12.60
4.15
48.57
95.95
-
-
 
SMA-008
From (m)
To (m)
Interval (m)
Ag (g/t)
Au (g/t)
including
0.00
3.60
9.30
6.50
9.30
2.90
64.66
127.90
-
0.16


Partially due to drilling limitations, eight of the ten holes reached only shallow down-hole depths ranging from 136m to 182m; however, four of these drillholes intersected a near surface, sub-horizontal zone of mineralized hydrothermal breccias varying from 7.9m to 14.9m in thickness, with silver grades ranging from 63.9 g/t Ag to 72.0 g/t Ag.

Drilling confirmed the presence of a large silicified alteration system which has been extended to approximately 800m long by 150m wide at surface and to a vertical depth of 400m, comprising hydrothermal breccias. The silicified alteration system remains open in all directions and at depth. Within the silicified breccias silver values range up to highs of 1,595 g/t Ag over 0.20m.

Update:

Subject to obtaining additional equity financing the Company is planning a further drilling program at San Martin. Goals of additional drilling will be to further define the extent of the silver mineralization and anomalous gold values in this large system, to test for possible extensions under gravel cover to the south, and to test for high grade lenses and feeders at depth.