Copper-Gold Deposits

The property is situated on the western flank of the Sierra Madre Occidental province, a well known metallogenic belt which is host to many silver and gold epithermal deposits, copper and/or molybdenum porphyry deposits, copper-gold (and other) skarn deposits, and iron oxide-copper-gold (IOCG) deposits. Late Cretaceous to Early Tertiary calc-alkalic intrusives, which form the basement of the Sierra Madre Occidental, provided the mechanism for hydrothermal activity and mineral deposition.

Exposed Mineralization

A multiphase granitic intrusive of this calc-alkalic intrusive suite is exposed in the northern part of the Baroyeca property and hosts disseminated and fracture-controlled copper-silver mineralization on the property. The intrusive hosted Cu-Ag mineralization is exposed, intermittently in subcrop and outcrop, over a 1 square kilometre area. Average grades in the range of 20-30 ppm Ag and 0.5-1% Cu have been returned from select grab samples throughout this area.

High Grade Samples

Many of the samples which returned the highest silver and copper grades were samples of intense hematite-sericite alteration or massive hematite-sericite veins within altered, mineralized intrusive rocks. Because of the very poor rock exposure, potential width and average grade of mineralization remains unknown. Average grades from select grab samples should not be interpreted as representative of the entire 1 square kilometre area.

Cu-Ag Mineralization

Approximately 2 kilometres to the north-northeast of the zone of known Cu-Ag mineralization, a large area of intense hematite-quartz breccia and intense sericite and/or hematite alteration occurs. These alteration zones are interpreted to be part of the same large porphyry-driven hydrothermal system responsible for the intrusive-hosted Cu-Ag mineralization to the southwest. There is essentially no rock exposed in the low lying plains between the zone of copper-silver mineralization described above and the large, intense alteration system seen to the north. Collectively, these two areas are referred to as the B-4 Area, and are best explained by an IOCG model. The B-4 Area is untested by any geophysics, trenching or diamond drilling and is a high priority for further work. The exploration target in the B-4 is a large, near-surface open-pittable Cu-Ag resource.

Exploration Target

South of the B-4 Area, in the southern part of the property, the intrusive rocks are overlain by Tertiary volcanics and volcaniclastics. These younger volcanic rocks form steep mountains that rise above the plain level and they host a strong and impressive Ag-Pb +/- Au, Cu, Zn epithermal vein occurs. The Baroyeca vein system is a shear-hosted vein that is traceable intermittently in outcrop and subcrop for 2.5 kilometres along strike. Individual vein widths, where observed on surface, average 2-3 metres, however the mineralized shear zones hosting the veins can be much wider than this, to as much as 30 metres.

Historic Mining

Historic mining (intermittently from 1700-1880) was done along a 650 metre long segment of the shear zone. This historical mining is largely undocumented, although reportedly was only of near-surface oxidized ore. The extent of surface oxidation and the depth to which the system was mined historically, remain unknown. The exploration target in this part of the property is for the at-depth continuation of the vein system, below the limit of historic mining, and for the on-strike continuation of the vein system, north of the limit of historic mining. While this target is attractive and is recommended for further work, it is a logistically more difficult target to explore than the B-4 Area, because of challenging terrain in the southern part of the Baroyeca Gold & Silver Inc., Baroyeca Property – NI 43-101 Technical Report May 15, 2009 property.

Rock Sampling and Geological Mapping

Since optioning the original claims in 2006, Baroyeca Gold and Silver Inc. has completed prospecting, rock sampling and geological mapping on the property, additional claim staking, and limited trenching and diamond drilling. All of the drilling has been on the epithermal vein target in the southern, optioned part of the property. The B-4 Area (IOCG target) remains untested by any trenching or drilling.

Work Program

A two-phase $1,500,000 work program is recommended for the property. Phase 1 has a budget of $700,000 and is intended to bring the B-4 Area to a drill ready stage. The recommended Phase 1 program includes airborne and ground geophysics (gravity, magnetics, radiometrics, IP) to generate specific targets in the B-4 Area for follow-up work. Soil sampling and excavator trenching are also recommended in Phase 1 program. The Phase 2 program includes diamond drilling to test targets in the B-4 Area which were defined by the Phase 1 work program, as well as drilling at the Tescalama and Mina Verde showings. Phase 2 has a budget of $800,000 and is in part contingent on the results of the Phase 1 program.

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