AbraPlata owns 100% of the 6,300 ha Aguas Perdidas project in Chubut Province, Argentina, approximately 137 km southwest of Pan American's Navidad project. It is an epithermal Au-Ag project on which approximately USD$2M has been spent on surface exploration work, which identified numerous gold-bearing quartz veins and breccias over an area of about 1,000 metres by up to 500 metres. Trenching results include 38.5 metres at 1.26 g/t gold and 2.0 metres at 15.4 g/t gold.
The Province of Chubut passed a law in 2003 ("Law 5001") that prohibits open pit mining and the use of cyanide in mineral processing. We believe that this law could be overturned in the near future. As such our activities at Aguas Perdidas at this time are focused primarily on satisfying the legal requirements necessary to maintain our property interests in good standing under the current mining law. We plan to continue with such maintenance requirements until a more favourable legislative framework is adopted.