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  Yarely is strategically located within 25 kilometres of the proposed El Paso plant site in Sinaloa state. Precious and base metal mineralization is hosted within several different deposit types including skarns, epithermal veins, disseminated stockwork zones and breccias. A systematic program of geological mapping, rock chip channel sampling, trenching and IP geophysics has defined six significant prospects.

Central Prospect

The Central prospect occupies a northwest to northeast trending corridor 4 kilometres long and 1 kilometre wide with three different mineralized areas. To the north, swarms of northeast trending, quartz-carbonate fracture filling veins hosted within Tertiary sandstone were exploited during the Spanish Colonial period. Surface and underground channel samples returned:

2 metres of 19.5 g/t gold and 505 g/t silver
8 metres of 1.6 g/t gold and 33 g/t silver
11 metres of 1.1 g/t gold and 42 g/t silver.

To the south, four subparallel northwest trending quartz stockwork structures up to 1 kilometre are hosted within chlorite, clay and sericite altered sandstone. Channel samples from trenches include:

14 metres of 1.5 g/t gold and 143 g/t silver
65 metres of 0.5 g/t gold and 12 g/t silver
33 metres of 81 g/t silver

Between the fracture filling veins in the north and the quartz stockworks to the south is a multi-stage hydrothermal breccia measuring 400 by 300 metres. This breccia is emplaced at the side of a regional northeast trending regional fault. Overall, mineralization is coincident with a "V" shaped anomaly measuring 6 kilometres in length, up to 600 metres wide and over 300 metres in depth.

Loretos Prospect

Loretos is contiguous to the west of the Central prospect and is coincident with the north-northwest trending “V” shaped IP anomaly. The west side of the “V” anomaly is over 3 kilometres long and 1 kilometre wide. Trench channel samples include:

2 metres of 3.0 g/t gold, 100 g/t silver, 0.9% lead and 0.8% zinc
10 metres of 73 g/t silver and 1.4% lead

Yazmin Prospect

Yasmin comprises a northeast trending zone 6 kilometres long and 2 kilometres wide which remains open along strike. Channel sampling returned:

3 metres of 4.1 g/t gold
6 metres of 1.1 g/t gold, 33 g/t silver and 0.5% copper
17 metres of 0.8 g/t gold and 10 g/t silver

Sundae Prospect

Sundae hosts a swarm of quartz veins ranging from 1 to 15 metres wide which have been traced along strike for over 3 kilometres. The quartz veins display classic high level epithermal textures which suggest the structures may have precious metal mineralization at depth. Preliminary geophysics shows a continuity of the structures to over 500 metres depth in the resistivity sections and a chargeability anomaly possibly related to sulfides.

Lucy Prospect

Lucy consists of an extensive zone of outcropping skarn developed along several kilometres of the contact between intrusive rocks and limestone. Channel samples across the manto-like skarn mineralization returned:

4 metres of 0.9 g/t gold and 103 g/t silver
7 metres of 117 g/t silver, 1.1% copper and 1.4% zinc
30 metres of 0.4 g/t gold, 12 g/t silver, and 3.7% zinc

Los Mimbres Prospect

Los Mimbres covers an extensive alteration area of 8 square kilometres within sandstone and shale. The system varies from fracture filling veins in the upper zones to disseminated sulfides and quartz stockwork 200 metres lower in elevation. The clastic sedimentary host rocks, age, geochemistry and the style of mineralization are all similar to Metates. Channel samples taken within the disseminated-stockwork zones returned:

7 metres of 0.4 g/t gold and 44 g/t silver
31 metres of 0.3 g/t gold and 14 g/t silver from a quartz breccia.

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