Previous Exploration

Three centuries ago, Spanish colonial miners put in ten horizontal tunnels into the weathered mineralized zones and removed a limited amount of "high-grade" (30 to 45 ounces of silver per ton) ore. The miners were forced to stop work when they encountered hard unweathered rock. In 1994, a government agency (Consejo de Recursos Minerales) took 347 samples from the rock dumps left behind by the Spanish miners. The rock dumps contain 21,595 tonnes of rock averaging 308 grams (9.9 ounces) per tonne silver and 1.53 grams (0.05 ounces) per tonne gold.

Based on this sampling and Stroud’s more recent sampling, grades average approximately 8.0 ounces silver per tonne and 0.02 ounces gold per tonne with high grade (over 45 ounces silver per tonne) sections in the breccia zones.

Stroud Diamond Drilling

A total of 22 holes were drilled on the Santo Domingo project in 2007 and 2008. One of the best mineralized intersections was 97.6 metres (320 feet) of 158.83 g/t silver and 0.49 g/t gold, including 1,521.2 (g/t) silver and 1.15 (g/t) gold over 4.6 metres.

Sampling Programs

Following the limited but very successful drilling program at La Rayas, a program of mapping and prospecting led the discovery of a second zone of mineralization. Dr. Derek McBride, P.Eng. took a series of samples from the old mine workings, which assayed 37.6 grams to 1466.6 grams silver per tonne and 0.17 grams to 3.94 grams gold per tonne. The sampling showed that mineralized structure to be approximately 700 metres long. Earlier miners took out high-grade weathered ore in zones 5 to 10 metres wide.

Additional prospecting on the property located three additional mineralized zones in 2006. Previous sampling from the El Cobre System located east of the Los Reyes Zone assayed 447(g/t) silver, 4.00(g/t) gold and 9.0% lead over 0.7 metres and 0.65 metres of 177.50(g/t) silver, 5.00(g/t) gold and 1.1% lead. A number of adits were located on the mineralized structure. La Esperanza System is located east of the El Cobre System and was discovered by a road cut. The El Zapilote System is located west of the Guadalupe System. Sections of the structure contain a well-developed system of adits and raises, which were used to carry out a limited amount of mining.