PANTANILLO PROJECT

print page

Pantanillo


Click on images for enlargements

The Pantanillo property was acquired as part of the acquisition of Fortune Valley Resources Inc. The property is located 125 km east of Copiapo in the Maricunga Belt of Chile on 11,750 hectares. During the quarter a database was compiled based on historical information from Anglo American (1985-1998) and Kinross Gold (2005-2008). Mineralization at Pantanillo is characterized by both gold porphyry style veining and high sulfidation ledges. Anglo American and Kinross have historically drilled more than 17,900 meters on the property with 15,134 meters being drilled on the principal target of Pantanillo Norte. This drilling on Pantanillo Norte was completed over a surface area of approximately 800 meters long by 500 meters wide on a 100 meter regular spaced drill sections. Drilling of other targets on the Pantanillo property include Pantanillo Central and Sur, as well as Quebrada Pantanillo.

Historical geological work on the Pantanillo property by Anglo American (1986-1998) and Kinross Gold (2005-2008) has defined a potential mineral deposit estimated to be in the range of 82 to 125 million tonnes grading 0.83 to 0.73 g/t gold, using a 0.6 to 0.5 g/t gold cut-off for the lower and higher tonnage estimates respectively, which is equivalent to 2.18 to 2.95 million ounces of contained gold. This preliminary assessment was made by Kinross Gold in 2007 and was estimated based on a total of 14,891 meters of reverse circulation drilling and diamond drilling. . An "in-house" resource estimate was completed by OMI as part of the due diligence of FVR. This "in-house" resource is not considered compliant with NI 43-101, however it suggests that the Kinross estimate was reasonable. OMI considers that the drilling to date is sufficient to produce a compliant resource however recognizes that the drilling data requires auditing before that can occur and that the 100m spaced drilling pattern would result in an entirely inferred resource.

OMI is initiating a planned 7,500 meter resource definition diamond drill program designed to infill historical drilling on 100 meter section lines. This drill program will focus on the upper oxidized levels down to an average depth of 200 meters. OMI plans to publish a NI 43-101 compliant resource estimate by the end of Calendar 2010. OMI is also moving ahead with obtaining proposals for prefeasibility work and plans to initiate studies concurrently with the resource definition drilling program.