Porphyry Cu’sMorenci 2+ Bt 0.9%+ Produced4+ Bt 0.30%+SXEW1+ Bt 0.63% SulDos Pobres350+ Mt 0.33 - 0.62% SXEW400 Mt 0.98% SulSan Juan300+ Mt SXEWLone Star1.6+ Bt 0.38% SXEW4 Bt 0.5% SulSanchez195 Mt 0.35% SXEW

Safford-Morenci Porphyry Copper’s

20 km N

Monsoon

Safford-Morenci Geology

LithologyPOST-MINERALQuaternary PedimentTertiary VolcanicPRE-MINERALLaramide IntrusiveCretaceous VolcanicCretaceous SedimentPaleozoic SedimentPrecambrian IntrusivePrecambrian Schist

Porphyry Cu20 km N

Monsoon

Safford Trend Geochemistry, Bio & Hydro

Biogeochemistry

Mo Anomaly

Porphyry Cu

Hydrochemistry

>30 ppm

10-30 ppm

<10 ppm

20 km N

Monsoon

Safford-Morenci Magnetic’s

MagenticIntrusiveComplex’s

Intrusive Complex

Exposed

Covered

20 km N

Monsoon

Safford-Morenci Gravity

RegionalGravity

20 km NMonsoon

Mag & Water Well Mo Hydrochem

Intrusive Complex

Exposed

Covered

Porphyry Cu

Hydrochemistry

>30 ppm

10-30 ppm

<10 ppm

Color RTP Mag

20 km N

Monsoon

Mag & Water Well Cu Hydrochemistry

Intrusive ComplexPartiallyExposed

Covered

Porphyry Cu

Hydrochemistry

>20 ppm

10-20 ppm

<10 ppm

Color RTP Mag

20 km N

Monsoon

Monsoon Geology and Mo Geochem

Biogeochem32-42+ ppm Mo

21-32 ppm Mo

10-21 ppm MoWell Chemistry

>30 ppm Mo

<30 ppm Mo

POST-MINERALQuaternary PedimentTertiary Volcanic

PRE-MINERALCretaceous Volc & SedsPrecambrian Rocks

10 km N

Monsoon Geology and Cu Geochem

Biogeochem83-133 ppm Cu

66-83 ppm Cu

33-62 ppm CuWell Chemistry

>20 ppm Cu

<20 ppm Cu

POST-MINERALQuaternary PedimentTertiary Volcanic

PRE-MINERALCretaceous Volc & SedsPrecambrian Rocks

10 km N

Monsoon Gravity and Cu Biogeochem

Noranda DrillHoles

Safford Trend

2 km

Volcanic Target

Alluvium Target

Monsoon Gravity and Mo Biogeochem

Safford Trend

2 km

Volcanic Target

Alluvium Target

Noranda DrillHoles

Monsoon RTP Mag and Mo Biogeochem

Noranda DrillHoles

Safford Trend

2 km

Volcanic Target

Alluvium Target

Monsoon Geology and Mo Geochem

Biogeochem32-42+ ppm Mo

21-32 ppm Mo

10-21 ppm MoWell Chemistry

>30 ppm Mo

<30 ppm Mo

POST-MINERALQuaternary PedimentTertiary Volcanic

PRE-MINERALCretaceous Volc & SedsPrecambrian Rocks

10 km N

Possible BasementHorst Block

H

L

H

L

L

Pre-Mineral BasementOutcrops

5 km

Monsoon Color RTP Mag and Gravity Contour

Gravity Contour 0.5 mgal

Monsoon

Safford Trend

Monsoon DEM and Cu Biogeochem

Noranda DrillHoles

Safford Trend

2 km

Volcanic Target

Alluvium Target

Monsoon Gravity and Mo Biogeochem

Noranda DrillHoles

Safford Trend

2 km

Basem

ent H

orst

Blo

ck

Volcanic Target

Alluvium Target

Monsoon RTP Mag and Cu Biogeochem

Noranda DrillHoles

Safford Trend

2 kmVolcanic Target

Alluvium Target

Monsoon GEOTEM Resistivity at 200 m

Proposed DrillHoles - Oct 97

Geotem EMLinears

Safford Trend

2 km

Volcanic Target

Alluvium Target

2001 Water Well Monitoring Program

2 km

Well D-3 returned a very significant Mo value of 226 ppm, other anomalous Mo values in D-2 and D6 returned 38 and 16 ppm respectively. D-3 also returned the most significant Au value, 0.025 ppm.

Monsoon Properties Land Ownership

State

Past Exploration Insights

• Noranda exploration was terminated while drilling on the project following Noranda’s decision to terminate US exploration. One and a half drill holes were completed at Monsoon.

• The first hole, R97-1R, was drilled to test the biogeochemical anomaly and drilled 2000 ft of basin fill sediments. Assays of the sediments and water were encouraging and provide information on transport mechanism associated with the geochemical anomalies.

– The groundwater ph is 8.4 suggesting Mo is mobile in the groundwater and Cu is not.

– The upper 25 meters of greenish clay was highly anomalous in Mo up to 20 ppm, Mo transport was hydrologic probably enriched by downward migration due to hydrologic transport (supergene), or possibly upward migration by evapero-transperation.

– Water geochemistry returned anomalous Mo values, further supporting its transport by hydrology.

– From 25 to 175 meters a reddish clay unit that is nowhere exposed on the property contained anomalous copper values ranging from 50 to 95 ppm. The higher end of these copper values are leach cap type grades (this Cu-clay unit could be eroded from a porphyry copper leach cap).

– A groundwater ph of 8.4 suggests that this Cu bearing clay unit and the Cu biogeochem anomaly were transported by erosion. Exploration involving tracing the red Cu bearing clay unit back to its source is needed.

– The fact that the Cu and Mo biogeochem anomalies overlap in much of the area, even though two different transport mechanism could be operating, suggest the source may be proximal.

• Hole R97-2R was on the northern edge of the biogeochem anomaly 3 km northwest of hole 1. This area tested an EM resistor and was drilled to a depth of 1200 ft. The Airborne TDEM resistor mapped a conglomerate unit that was not encountered in drill hole 1. Minor Cu oxide mineralization was drilled in the pediment gravel. The hole was terminated mid-hole; samples were dumped and the hole reclaimed.

Proposed Monsoon Exploration

• Map broad regional geology – NM pre-mineral rocks.• Channel sample Monsoon grey and brown (Cu rich)

clays, and map stratigraphy to determine geochem transport directions

• Geophysics. ZTEM and Mag.• Drill geochemical test holes – analysis of all alluvium

and volcanic cover rocks, and regular hydrogeochem samples.

• Interpret geochemical transport mechanisms and directions.

• Drill again.