Pimentón A new Cu-Au porphyry deposit in Farellones This report by Rio Tinto dated June 6, 2006 was prepared as an Executive Summary and is not compliant with National Instrument 43-101 1 Pimentón Project June 6, 2006
Summary Exploration was carried out under an LOU between SAGC and Rio Tinto, signed in March 2005 8 holes were drilled totalling 3891m of diamond drilling A very well mineralised copper-gold porphyry system was discovered Best results include 279m 0.4% Cu - 0.43g/T Au and 70m 0.46% Cu - 0.49g/T Au Results of exploration programme conducted by Rio Tinto have added a significant value to the Pimentón project 2 Andean District - Chile Exploration June 6, 2006
Pimentón Legend Lithology Diorite porphyry Volcaniclastics Tuffs Tourmaline breccia 8 4 6 2 5 34m @ 0.13% Cu & 0.14g/t Au, from 188m 1 136m @ 0.17% Cu & 0.04g/t Au, from 627m Alteration Potassic Phyllic Propylitic 7 Plant Auriferous quartz veins Camp RT diamond drill holes Other diamond drill holes Proposed drill holes N 0 m 500 86m @ 0.15% Cu & 0.06g/t Au, from 11m 3 3 Pimentón Project June 6, 2006
Lithology Pimentón Schematic Cross Section Pimentón Valley Valle Hondo Moraine Volcaniclastics 6 4 2 Early porphyry Intermineral porphyry Late porphyry Tourmaline breccia 70m @ 0.46% Cu & 0.49g/t Au, from 100m 279m @ 0.4% Cu & 0.43g/t Au, from 312m Fault 465m 685m 626m 34m @ 0.13% Cu & 0.14g/t Au, from 188m RT diamond drill holes Other diamond drill holes 4 Pimentón Project June 6, 2006 N 0 m 500
Intermineral diorite porphyry Late diorite porphyry 5 Pimentón Project June 6, 2006
Pimentón Hole 4 330m Cu & Au mineralisation in potassically altered early diorite porhyry 0.53% Cu 0.56 g/t Au 6 Pimentón Project June 6, 2006
Pimentón Hole 6 128m Early diorite porphyry with A-veinlets and chalcopyrite bornite mineralisation 7 Pimentón Project June 6, 2006
Early diorite porphyry Intermineral diorite porphyry 8 Pimentón Project June 6, 2006
Intermineral Diorite porphyry Early diorite porphyry 9 Pimentón Project June 6, 2006
Intermineral diorite porphyry 10 Pimentón Project June 6, 2006 Early diorite porphyry
MODELO GEOLOGICO PREDICTIVO Lithology Valle Pimentón Valle Hondo Moraine Volcaniclastics Early diorite porphyry Intermineral diorite porphyry Late diorite porphyry Tourmaline breccia 6 4 70m @ 0.46% Cu & 0.49g/t Au, from 100m (0.8% Cu equivalent) 279m @ 0.4% Cu & 0.43g/t Au, from 312m (0.7% Cu equivalent) Fault 465m 685m 2 34m @ 0.13% Cu & 0.14g/t Au, from 188m 626m MODELO GEOLOGICO CON INFORMACION DE NUEVOS SONDAJES RT diamond drill holes Other diamond drill holes 0 M 500 11 Pimentón Project June 6, 2006
A Argilica I B Argilica-Seric Vetas Qz Au Hm Leached Jr E.Sec. Cc/Py Epitermal Pórfido Diorítico Intermineral Pórfido Diorítico Tardío - sin vt qz Bx Termal C Vetas Au Esp-Cp Mesotermal Vt qz A truncada Pórfido Diorítico Intermineral Sericita Sericita verde Calc-Ep Br act-qz-ep-espmgt Pórfido Diorítico Temprano Biotita Cp(+) Biotita-FK-mgt Vetilla B (Mo) Stockwork Vetilla A Vetillas D (Py) Pórfido Cu Pórfido Diorítico Temprano Cp-Bn Vt qz A cp 12 Pimentón Project June 6, 2006
Unidad Columna Litología A Fm. A Andesita porfídica gruesas y afanítica con intercalaciones brechas volcánicas B F A R E L L O N E S B C Toba soldada Toba cristalina-lítica Andesita porfídica, aglomerados, areniscas tobáceas y andesita grano fino C 13 Pimentón Project June 6, 2006
8 2 SONDAJES PIMENTON 4 6 5 1 2005: 3 POZOS DDH 1.822,9 m 2006: 5 POZOS DDH 2.068,2 m TOTAL 3.891,1 m 7 Plant Camp 0 M 500 RIO TINTO PIMENTON 3 14 Pimentón Project June 6, 2006
CONTROL DE CALIDAD Cu PPM Cu PPM Cu PPM CONTROL DE CALIDAD DE STANDARD ALTAR 1 PM-DD-004 PROYECTO PIMENTON 2006 11000 10000 9000 8000 1 3 5 7 9 11 BATCH CON TROL D E CALID AD D E STAN D ARD ALTAR 2 PM-DD-004 PROYECTO PIMENTON 2006 6000 5000 4000 RANGO SUP ERIOR (VALOR 10007 P P M) RANGO INFERIOR (VALOR 9237 P P M) STANDARD 2 4 6 8 10 12 RANGO SUP ERIOR (VALOR 5282 P P M) BATCH RANGO INFERIOR (VALOR 4779 P P M) STANDARD CONTROL DE DUPLICADO PM-DD-004 PROYECTO PIMENTON 10000 5000 0 1 2 3 4 5 6 7 8 9 10 11 12 BATCH DUPLICADO PADRE DUPLICADO HIJO Cu PPM Cu PPM Cu PPM CONTROL DE CALIDAD DE STANDARD ALTAR 1 PM-DD-006 PROYECTO PIMENTON 110 0 0 10000 9000 8000 5000 4000 1 3 4 6 RANGO SUP ERIOR (VALOR 10007 P P M) BATCH RANGO INFERIOR (VALOR 9237P P M) STANDARD CONTROL DE CALIDAD DE STANDARD ALTAR 2 PM-DD-006 PROYECTO PIMEMTON 6000 2 5 7 RANGO SUP ERIOR (VALOR 5282 P P M) BATCH RANGO INFERIOR (VALOR 4779 P P M) STANDARD CONTROL DE CALIDAD DUPLICADO PM-DD-006 PROYECTO PIMENTON 10000 8000 6000 4000 2000 0 1 2 3 4 5 6 7 BATCH DUP LICADO P ADRE DUP LICADO HIJO 15 Pimentón Project June 6, 2006
SECCION LITOLOGIA-ESTRUCTURA Lithology Valle Pimentón Valle Hondo Moraine Volcaniclastics 6 4 2 Early diorite porphyry Intermineral diorite porphyry Late diorite porphyry Tourmaline breccia 70m @ 0.46% Cu & 0.49g/t Au, from 100m (0.8% Cu equivalent) 279m @ 0.4% Cu & 0.43g/t Au, from 312m (0.7% Cu equivalent) Fault 465m 685m 626m 34m @ 0.13% Cu & 0.14g/t Au, from 188m RT diamond drill holes Other diamond drill holes 0 M 500 16 Pimentón Project June 6, 2006
SECCION ZONA MINERAL Valle Pimentón Valle Hondo Mineralisation Py (<0.1% Cu) 6 4 2 Cp - Py (~0.2% Cu) Cp > Py - Bn (~0.5% Cu) Cp >> Bn (> 0.7% Cu) 70m @ 0.46% Cu & 0.49g/t Au, from 100m (0.8% Cu equivalent) 279m @ 0.4% Cu & 0.43g/t Au, from 312m (0.7% Cu equivalent) 465m 685m 626m 34m @ 0.13% Cu & 0.14g/t Au, from 188m RT diamond drill holes Other diamond drill holes 0 M 500 17 Pimentón Project June 6, 2006
ZONA DE ALTERACION Ca-Na C K S-C P C B A S 18 Pimentón Project June 6, 2006
HOLE PM-DD-004 HOLE PM-DD-005 GRADE AVERAGE GRADE AVERAGE FROM TO LARGE m Cu% Au gr/tn FROM TO LARGE m Cu% Au gr/tn 83.7 681.15 597.45 0.28 0.32 69 332 263 0.12 0.10 INCLUYE HOLE PM-DD-006 INCLUYE FROM LARGE m Cu% Au gr/tn FROM LARGE m Cu% Au gr/tn 148.5 56 0.30 0.31 69 44 0.20 0.22 259 49 0.22 0.22 151 20 0.32 0.15 312 279 0.40 0.43 (312) 385 121 0.44 0.46 (312) 553 35 0.44 0.46 591 37 0.22 0.25 600 26 0.23 0.25 2 GRADE AVERAGE FROM TO LARGE m Cu% Au gr/tn 95.5 464 368.5 0.23 0.26 INCLUYE FROM LARGE m Cu% Au gr/tn 100 72 0.46 0.48 (100) 106 58 0.50 0.52 224 34 0.21 0.21 280 20 0.23 0.27 388 48 0.33 0.43 RESULTADOS DE LEYES Cu - Au 8 6 4 5 1 7 Plant Camp 0 M 500 3 19 Pimentón Project June 6, 2006
Valle Pimentón Valle Hondo Mineralisation Py (<0.1% Cu) 6 4 2 Cp - Py (~0.2% Cu) Cp > Py - Bn (~0.5% Cu) Cp >> Bn (> 0.7% Cu) 70m @ 0.46% Cu & 0.49g/t Au, from 100m (0.8% Cu equivalent) 279m @ 0.4% Cu & 0.43g/t Au, from 312m (0.7% Cu equivalent) 465m 685m 626m 34m @ 0.13% Cu & 0.14g/t Au, from 188m RT diamond drill holes Other diamond drill holes 0 M 500 PM-DD-004 Metraje Abundancia relativa % Leyes vetillas (m) magnetita calcopirita bornita % Cu gr/tn Au Qz 197 4 2 a 3 0.27 0.38 B 330 2 a 3 0.31 0.38 B 357 3 a 3,5 1,5 a 2 traza 0.33 0.31 A y B 419 3 a 4 2,5 a 3 0.30 0.40 EB-B-D 575 4 a 5 1,5 traza 0.40 0.47 EB-A-B 20 Pimentón Project June 6, 2006
Pimentón Disputada 4000 m.a.s.l 3500 m.a.s.l Los Pelambres Volcanics and plutons 22-12 Ma Pimentón Breccias K-alteration 10-6.9 Ma Late porphyries >6 Ma Pelambres 3000 m.a.s.l Sericite 10.37 +/- 0.19 Ma Secondary Biotite 9.94 +/- 0.14 Ma 2500 m.a.s.l Los Bronces- Rio Blanco Volcanics 21-14 Ma K-alteration >5.4 Ma Late porphyries 5.2-3.9 Ma Plutons 20-7.6 Ma Breccias 7.3-4.2 Ma Lowest extraction level 1983 mts 2000 m.a.s.l El Teniente Volcanics 14-5.6 Ma Alteration >4.4 Ma Late dykes 3.8-1.8 Ma 1500 m.a.s.l Plutons 8-7 Ma Braden Breccia Teniente Porphyry 4.6-4 Ma Mineralisation drilled to at least 1200 mts Teniente 22 20 18 16 14 12 10 8 6 4 2 0 Ma 21 Pimentón Project June 6, 2006
Conclusions and recommendations A large Cu-Au porphyry deposit was identified in the Pimentón valley under relatively shallow moraine This new Cu-Au deposit is one of the most significant discoveries in the Farellones belt in the last years Although the Cu and Au grades can be considered subeconomic at this stage, there is potential for a high grade core in depth 22 Andean District - Chile Exploration June 6, 2006
Conclusions and recommendations (cont.) It is recommend to drill a few deep holes in the main valley to evaluate the vertical extension of mineralisation Potential resources of several hundreds million tonnes is thought to be a realistic scenario Results of exploration programme done by Rio Tinto have added a significant value to the Pimentón project and subsequently to their stakeholders 23 Andean District - Chile Exploration June 6, 2006