Metalline Mining Company




Maps & Photos Location Concessions District Concessions Sierra Mojada Range Sierra Mojada Fault Geology Map District Cross Section Mines, Workings & Stopes Sierra Mojada Photos Mineralization & Grades Drill Hole Location Map Sections 629800E and 6315000E 2008 Surface and Underground Drill Hole Locations	SIERRA MOJADA PROJECT Metalline’s Location Metalline’s Sierra Mojada Project is located in the west central part of the state of Coahuila, Mexico, near the Coahuila-Chihuahua state border 200 kilometers south of the Big Bend of the Rio Grande River and 250 kilometers north of Torreon, the nearest large city. It consists of concessions that total 19,408 hectares (47,939 acres). Sierra Mojada has paved road access from Torreon, high voltage electric power, an operating railroad and a well maintained 1100 meter gravel airstrip. See Location Map, Concessions and District Concessions. History The Sierra Mojada District is a high grade silver mining area extending more than 6 kilometers in an east-west direction and over 1.5 kilometer in a north-south direction along the base of the precipitous Sierra Mojada Range. District ore has been selectively mined for high grade silver, copper, zinc and lead mineralization of sufficient grade to be shipped directly to smelters, the district has never had a mill to concentrate lower grade mineralization. See Sierra Mojada Range. Discovered in 1879, Sierra Mojada was one of the early bonanza silver districts of Mexico. High grade silver bearing lead carbonate was the first ore mined in the district, known as the Lead Manto (manto is a near horizontal tabular body). The Lead Manto has been mined from discovery through the 1950’s and was the only ore mined until 1906 when the San Jose Mine was discovered. The San Jose Mine was the first silver copper ore discovered in the district, with silver grades of 3000 to 4000 grams per tonne (31.1 grams = 1 troy ounce) and 3% to 4% copper. The San Jose mine started a new period of exploration, discovery and mine development north of the east-west trending Sierra Mojada fault. The fault separates silver, copper, cobalt, zinc, and lead sulfide mineralization, north of the fault, from lead and zinc oxide mineralization south of the fault. From discovery through the 1950’s over 45 mines were discovered and all produced high grade direct shipping ore. The waste dumps of all of these mines contain lower grade mineralization that is amenable to concentration in a standard flotation mill. See Sierra Mojada Fault, Geology Map, District Cross Section and Mineralization & Grades which contains examples of mineralization and grades. Exploration In 1997 Metalline Mining acquired concessions in the Sierra Mojada District. All available historic data from literature and previous operators was acquired, this included work by Peñoles, Asarco and Kennecott Copper Corporation. Two areas were selected for evaluation: the La Nortena area of the Encantada mine which is silver, copper, cobalt, zinc, lead sulfide mineralization and oxide zinc mineralization in the San Salvador, Encantada, Fronteriza mines. See Mines, Workings & Stopes. From 1997 through 1999 Metalline channel sampled and percussion drilled the underground workings and in 1999 completed a surface reverse circulation drill program which consisted of 24 holes and 6,630 meters. Fifteen holes were drilled in the La Nortena area and nine holes were drilled in the oxide zinc mineralization in the San Salvador and Encantada mines. High grade mineralization over thick intervals was intersected in both mineral systems. Metallurgy advances, the ability to leach oxide zinc mineralization with sulfuric acid combined with electrolytic reduction to refined zinc metal shifted exploration activity to the oxide zinc mineralization. Metalline received inquiries for joint venture from mining companies and decided to seek a joint venture partner to pursue the evaluation and development of Sierra Mojada. In October 1999 an agreement was signed with North Limited of Australia that allowed North Ltd. to earn a 60% interest in Sierra Mojada by completing a bankable feasibility study. North Ltd mapped the surface and underground geology and continued channel sampling and percussion drilling of the mine workings. A program consisting of surface reverse circulation drilling of 6,753 meters and 26 holes and 8,339 meters of percussion drill and channel samples from the underground workings was completed. Rio Tinto Ltd. purchased North Ltd. in October 2000 and decided that the Sierra Mojada project did not match their corporate priorities and terminated the joint venture agreement. In November 2001 Metalline signed a joint venture agreement with Minas Peñoles S.A. de C.V. The agreement allowed Peñoles to earn 60% interest in the project by completing a bankable feasibility study. Peñoles is Mexico’s second largest mining company and the world’s largest silver refiner. Peñoles continued to explore and evaluate the oxide zinc mineralization by surface and underground drilling, driving raises vertically through the mineral horizon in order to bulk sample the mineralization and mapping and channel sampling the mine workings in the San Salvador, Encantada and Fronteriza mines. In December 2003 Peñoles and Metalline terminated the joint venture agreement by mutual consent. In January 2004 Metalline initiated an underground diamond drill program and continued percussion drilling and channel sampling. During 2004 in excess of 30,000 meters of diamond drilling in the San Salvador, Encantada and Fronteriza mines was completed. Website Copyright ©2010 Metalline Mining Company. All Rights Reserved.	QuickLinks NYSE Amex Quote News Releases Company Profile Metal Charts Presentation Join Email Alert