Other Chilean Properties

The Anocarire Project

The Anocarire Project is located in the district of Putre, Province of Parinacota, Region I, Chile, approximately 120 km east of Arica and 60 km southeast of the town of Putre.

The exploration that has been conducted to date at Anocarire has generally defined a north-westerly trending structural zone which has defined the emplacement of the original partially eroded Tertiary stratovolcano and which has controlled the emplacement of the very high level, steam-heated (advanced argillic) alteration and coincident variously weakly anomalous mineralization. The steam heated zone is characterized by variably friable and porous to massive opaline silica, gypsum, jarosite, limonite, and weakly developed native sulfur, with flanking and/or below, zones of argillic and advanced argillic alteration including areas of quartz-(kaolinite) alunite. The north-westerly trending zone of the very high-level alteration is estimated to be approximately 900 m long by 600 m wide. The host rocks for the alteration/mineralization are considered to be andesitic volcanics.

Andina drilled two holes for the purpose of determining the nature of the geology underlying the widespread high sulphidation-type epithermal alteration system. Drill hole DAN-01, drilled to a depth of 286 metres, returned elevated gold values averaging 0.06 grams per tonne gold over the bottom 106 metres of the drill hole along with elevated barium and mercury values. Drill hole DAN-02, was lost at a depth of 117 metres as a result of poor ground conditions, however, anomalous gold values were obtained.

Previous to that, Homestake Mining collected a series of surface samples 1997 and Goldfields also did limited work (2004) taking 102 rock chip samples.

The Piras Gold Project

The Pircas project comprises 2,220 ha of concessions located in Region III, approximately 270 km to the northeast of Copiapó and 70 km northeast of El Salvador, Region II Chile.

The Pircas concessions under an option to purchase agreement with Gold Fields whereby Gold Fields has agreed to spend US$6,799,000 over 96 months, effective October 9, 2009. In the event that Gold Fields completes a bankable feasibility and enters into production, it will pay a 2.5% NSR royalty to SCMAH (50% owned by Atacama Pacific) with the ability to reduce the NSR for payment of US$10,000,000.

Preliminary exploration at the Pircas performed in the early 1980s, detected geochemically anomalous gold and/or other elements associated within a high-level, high sulfidation epithermal system. Interpretation of satellite imagery color anomalies suggested that alteration which is typical of such systems and which are characteristic of Maricunga-style mineralization and alteration may be present. The project was previously explored by one, or more, unknown companies who drilled at least 3 RC holes (results unknown) and constructed 8 km of roads.

The mineralization and alteration (hypogene advanced argillic) observed at the Pircas Project is characteristic of the high-level high sulfidation mineralization/alteration seen at the La Coipa Mine. The banded quartz veining and Cu-Mo geochemistry suggests the potential for telescoped Maricunga-style Au-(Cu) porphyry mineralization.

Gold Fields sampled 13 trenches (4,892 m) and drilled seven RC angle holes (2,682 m) and nine diamond drill angle holes (2,718.2 m).

The best results from the drilling program included 34 m grading 3.0 g/t Au and 17 g/t Ag starting at a depth of 133 m including 16 m grading 5.7 g/t Au and 34 g/t Ag. The Pircas Gold Project continues to be held by and funded per the option agreement with Gold Fields and the exploration being conducted on this property is currently outside of Atacama Pacific’s control.

The Piedra Parada Project

The Piedra Parada Project comprises 900 ha located approximately 80 km east and northeast of El Salvador in Region III, Chile. The property is owned 100% by Atacama Pacific. Preliminary exploration, which was performed in the area of the Piedra Parada concessions in the early 1980’s, detected geochemically anomalous gold and/or other indicator elements associated with high-level, high sulfidation epithermal (Maricunga-style) systems in which the interpretation of satellite image false color anomalies suggested alteration typical of such systems.

In 2008, Gold Fields initiated limited reconnaissance geochemical sampling in the vicinity of Piedra Parada by including soil, rock chip, trench sampling and drilling (2 RC holes – 562 m) typically returned low Au values with a high of 23 ppb Au, and variously anomalous As, Ba, Cu being reported. Atacama Chile purchased the property in 2010.

Atacama Pacific is planning a 1st Phase exploration program to comprise geological mapping, trenching and assaying to determine the potential for economic precious metals mineralization. Depending on the results, additional exploration activities will be considered.

The Roca Prospect

The Roca Prospect comprises three clusters of contiguous concessions which Atacama Pacific acquired by filing in 2009.

The Roca Prospect is located approximately 80-100 km east and northeast of El Salvador, Region III, Chile. To date, minimal on the ground work has been performed within these concessions and the concessions are considered to cover separate areas of prospectable Maricunga-style high-level hydrothermal alteration.

The Roca Project concessions were acquired on the basis of regional geologic and satellite image evaluations. The apparent alteration zones have dimensions of up to 4 km x 2 km. In 2008, Gold Fields performed limited geochemical sampling at the Lagunas Norte and Sur concessions (18 and 26 samples respectively). This work returned trace to weakly anomalous Au (<2.5 to 25) and trace to moderately anomalous indicator elements (As, Cu, Mo, Hg, and Sb). The elevated Cu-Mo values at Lagunas Norte may signal the potential for a Maricunga-style gold (copper) porphyry at depth.

The Company is planning additional geochemical sampling, and preliminary geologic mapping program and depending on the results of this work, Atacama Pacific may propose a more specific and expanded exploration program.

The Toro Prospect

The Toro Prospect comprises the Toro-Eulogio concessions located approximately 60 km to the north-east of the Cerro Maricunga Project.

Atacama Pacific acquired the rights to the Toro and Eulogio concessions from a local Chilean prospector through an agreement to pay US$1,000 before June 30, 2012. Furthermore Atacama Pacific agreed to pay a 0.6% NSR royalty from any commercial production however may buy 25% of the royalty (or 0.15% NSR) for US$1,500,000 at its election. These concessions were acquired, on the basis of detailed satellite imaging research, as areas which have characteristics suggestive of the alteration typical of Maricunga-style high-level (solfataric), high sulfidation precious metal epithermal systems.

To date, Atacama Pacific has not conducted any geochemical sampling or on-the-ground geology over these concessions. The color anomalous alteration areas that have been detected on the basis of satellite imaging suggest that the altered areas at Toro warrant a first pass geochemical sampling and geologic mapping program as proposed by Atacama Pacific. This work would primarily comprise geochemical sampling (soil, float and rock chip) and limited geological mapping. Dependent on the results of this work, an expanded Phase II exploration program may be considered.