Geology

Geological mapping of the Main Zone and Victoria deposits has outlined an east-west trending, elongated zone of strong phyllic-alteration over a 4500m x 1,500m x 500m-600m area. This altered zone is hosted by a foliated, fine-grained volcano-sedimentary unit of probable Jurassic age, cut by several generations of porphyritic diorite stocks, and dykes of andesitic and dacitic composition with weak to moderate phyllic alteration and moderate to strong secondary biotite alteration. Geological interpretation of drillhole data indicates that the copper-gold rich porphyry system is associated with at least one multiphase biotite-altered quartz diorite to diorite stock located at the center of the Zafranal alteration system.Drilling on the Main Zone has shown that mineralization and alteration have a well-zoned pattern consisting of a leached zone, an immature enriched supergene blanket and a lesser explored hypogene sulphide zone. The best copper mineralization comes from an enriched blanket defined over a 3300m x up to 600m x 50-150m (thickness of blanket) east-west trending area which averages approximately 0.7% Cu consisting of chalcopyrite replaced by chalcocite and covellite.Mineralization at surface includes disseminated pyrite within distal areas and abundant “D" and rare “B" veins in the core of the zone. Copper oxides observed include malachite, chrysocolla, azurite, and atacamite in the form of veins, fracture fillings, disseminations and stains. The system is locally weakly leached and systematic outcrop sampling returned anomalous copper and molybdenum values (2,147 ppm Cu average).Mineralization in the enriched blanket consists of chalcocite as rims or total replacements of chalcopyrite as well as chalcocite coatings over pyrite grains. Covellite is also present but in lesser quantities. Most chalcocite/covellite is disseminated or vein-controlled as it follows the distribution pattern of chalcopyrite-pyrite. The nature of the leached zone (0.1-0.2% Cu), the presence of malachite and azurite and the mix of chalcocite with chalcopyrite and pyrite in the enriched zone are characteristics of an immature blanket with moderate enrichment.Mineralization on the Victoria Zone is hosted by very strongly foliated dioritic rocks, and occurs principally as primary chalcopyrite on a tabular-shaped body dipping parallel to the principal foliation phase. Weak secondary enrichment occurs on the southern side of Victoria. A similar geometry to the mineralization hosted by similar rocks is observed on the Sicera Norte target, whereas mineralization on Sicera Sur occurs as oxide, mixed and primary sulphides hosted by diorite intrusive rocks and by Cretaceous age limestone rocks.MetallurgyAQM plans to conduct additional metallurgical tests on samples from all styles of mineralization found on the Main Zone and Victoria zones. Results will be announced as they are received.