CHILE

Especularita

13,799 HA.

The Especularita project, located approx. 170km to the south of the San Lorenzo project and within the same coastal metallogenic belt, comprises 13,799 ha of exploitation and exploration concessions both granted and in the process of being granted. GSC owns rights to 100% of the projects via a US$2m Purchase Option Agreement payable over 6-8 years with no additional royalty payments or consideration to vendors.

Geology and Exploration Targets

The geology of Especularita is dominated by an extensive lithocap alteration zone formed at the intersection of several sets of crustal-scale structures and the contact margin of the Quilitapia Granodiorite and overlying andesitic volcanics.

Remote sensing studies by GSC suggest that the lithocap alteration, which comprises an inner advanced argillic core enveloped by a more extensive halo of silica-argillic alteration (silica cap) is larger and more intense than that associated with the large Andacollo copper mine located in the same coastal metallogenic belt some 90km to the north. Such lithocap systems are common above and/or lateral to porphyry Cu mineralizing s ystems and may themselves be mineralized or barren.

Evidence of small-scale and artisanal copper mining is extensive in the district and particularly concentrated both at the contact of the granodiorite with the overlying volcanics as well as preferentially located around the base of the lithocap alteration zone providing strong evidence for the potential of discovering porphyry copper style mineralisation beneath the lithcap.

Work by GSC indicates that the volcanic rocks also host distal skarn and epithermal style alteration and mineralisation suggesting that the Especularita mineralisation forms part of a district-scale system.

Especularita Project North Alteration Zones

Exploration Programme

Where applicable GSC will employ modern best practice exploration methodology and technology to advance the development of its projects. On-going work programmes for San Lorenzo include surface mapping and sampling (rockchip, soil and trenching) and geophysics surveys (magnetics, gravity, IP). Results from these programmes will be used to target reconnaissance drilling programmes.