GEOLOGICAL INFORMATION AND LOCATION

SUMMARY

Table of Contents
  1. Summary
  2. Geological Information and Location Summary
  3. Open Pit Mining Plan: Volcano Mine, Hidalgo County New Mexico, USA
  4. Exhibits

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The Volcano Mine is located in North-central Peloncillo Mountains of Hidalgo County in Southwestern New Mexico, USA. Portions of the U.S. Geological Survey, San Simon-New Mexico, USA 15 minute quadrangle and the Mondel, New Mexico, USA 71/2 minute quadrangle cover the area. (Exhibit 8)

Within the area, east trending valleys cut the range at it’s south and north boundaries and through the center. The highest point is Steins Peak with an elevation of 5867 feet and the lowest point 4226 feet. The general topography is marked by moderately and gently sloping hills, but steep cliffs and active talus slopes are also encountered.

The nearest towns are Lordsburg, New Mexico, USA, approximately 28 miles to the east and San Simon, Arizona about 20 miles to the west. The railroad town of Steins, NM, USA, active during the construction of the Southern Pacific railroad is about 8 miles south of the Volcano Mine. Located adjacent to Steins is a main line railroad with east and west loading sidings available and is parallel to Interstate Highway 10 for truck transportation to the smelter. (Exhibit 8)

The Volcano Mine straddles the Volcano silica, silver and gold vein and has been the largest producer of precious metals in the Kimball mining district.

The silica vein system at the Volcano Mine is marked by one or more parallel vein or vein splits, which consist of strongly silicified wall-rock breccia and quartz. (Exhibit 2) As expected, the silica quartz vein material has yielded the highest combined gold and silver values. The average gold values in the silica quartz vein indicate that gold was more mobile than silver in the hydrothermal system.

Also included are several exhibits showing the property being mined during the exploration stage of 1994-1995. (Exhibit 13-14)

Exhibits 16-18 show the property being mined during the recent developmental stage. As of this date, approximately 4380 tons are ready for shipment to the smelter. Also there are approximately 16,000 tons of decorative rock to be shipped.