GEOLOGIC SETTING AND STRUCTURAL INTERPRETATION

The concession is a greenfield area that hosts significant outcropping mineralization. The area has been regionally and locally faulted and is highly uplifted to 5400m at Cerro Desfiladero. Milena sits within 2 km of a U-shaped bend in the continental divide bounding Chile and Argentina. It occupies three valleys, a cirque basin and all high ground between two through-going fold-like features related to a major NNW trending structural valley and an NE trending ridge line which intersect to make Cerro Desfiladero. There is no glaciation on site. The cirque basin is an ice-free glacial feature with a relict moraine and an ephemeral pond.

Google Earth images suggest Cerro Desfiladero is a “half-dome” formed by collapse of a bimodal dike work stockworked dome that rises 500 meters above the uppermost geomorphic surface of the “High Andes”. The slopes of the dome host a high-sulfidation porphyry Au-Cu system associated with mineralized breccia shells, dikes and pipes outcropping in and around a well defined magnetic low bounded on one side by the slope of the dome.

Country rock of the dome itself is reported as Paleozoic granite and meta volcanic sediments but there has been little dating beyond Sernageomin’s publication of a 16 Ma date on a Miocene hornblende diorite plug (in contact with dome rock at the foot of cliffs exposing Cerro Desfiladero dike zone) and a 14.3 Ma age on alteration sericite in a Teck report Cerro Desfiladero shows such intimate intrusive association, it may be interpreted as having been affected by Miocene events and is not merely Paleozoic wallrock material.