Cuatro Hermanos

(Click here to view the Aug 9, 2008 Technical Report for Cuatro Hermanos)

The property is located in south east Sonora, just west of the Yaqui River which is located in the western flank of the Sierra Madre. It lies at the southern end of the well known and very prolific copper porphyry province of the southwestern United States and northwestern Mexico. The property is 100% owned by Virgin Metals Inc.

The mineralizing system at Cuatro Hermanos is considerably larger than that of the nearby Los Verdes project, but it has been less intensively explored. The property contains a large Cu-Mo porphyry with numerous exploration targets, and widespread hydrothermal alteration encompassing an area of more than 14 sq km. Previous wide-spaced drilling has shown consistent copper-molybdenum mineralization across substantial widths, and over an area of at least 4.5 sq km. Recent developments on the property include completion of a 5,907 m reverse circulation drill program, a NI 43-101 compliant resource estimate, and the initiation of a 5,000 m deep core drilling program. Our target at Cuatro Hermanos is a resource containing many hundreds of millions of tonnes of mineralization at modest Cu-Mo grades, along with Ag credits. Drilling by Virgin Metals has confirmed widespread mineralization; grades are generally seen to increase at depth with the presence of potassic alteration. Cuatro Hermanos bears striking similarities to other large porphyry deposits such as the producing Sierrita mine, located to the north in southern Arizona. A table summarizing our resources for the contiguous Main and Sulfate zones is provided in the table below.

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Property Map	Main Copper Zone	Geology and Drill Map

Since the late-1960s, Cuatro Hermanos has been explored intermittently by several major mining companies, including Occidental Petroleum, Amoco, Cominco, BHP, and Phelps Dodge. Numerous drill holes completed over a period of nearly forty years demonstrate significant copper-molybdenum mineralization over an area of at least 4.5 square kilometers, however, drill density is on the order of only 500 to 700 meters spacing. The goal of our first phase of exploration was to tighten up the spacing (to approximately 150 to 200 meters) over a 1,500 m long x 500 m wide band of intensely phyllically altered and variably silicified quartz diorite and diorite located along the northern and eastern sides of the porphyry complex, in areas historically called the Sulfate Zone and the Main Zone, respectively. Exploration completed to date by Virgin Metals suggests that copper-molybdenum mineralization is continuous between the two zones, and accordingly the present campaign is aimed at demonstrating such continuity.

Four exploratory drill holes were completed on a separate porphyry target located 2.5 kilometers west of the Main Zone, a topographic promontory known as Moly Hill, an area historically called the West Zone. Known for its high grade molybdenum values in surface exposures, recent exploration drilling at Moly Hill has provided considerable encouragement. The West Zone will be further evaluated during 2008.

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Drilling in the Main Zone	Moly Hill	Drilling

At the Company's 53 square kilometer San Lorenzo property, located a few kilometers southwest of Cuatro Hermanos, reconnaissance prospecting, rock chip sampling and geologic mapping were done during the second half of 2007. The San Lorenzo claim block is underlain by a corridor of hydrothermally altered, Lower Tertiary to Upper Cretaceous intermediate to felsic intrusive and volcanic rocks which have the potential to host additional porphyry style mineralization. First pass sampling has provided encouragement and management believes that continued exploration over the property during 2008 will produce targets worthy of follow-up drilling.