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In 2001, Kilborn Engineering modeled the valid holes for the Paititi zone. Their model showed potential for a near-surface gold resource. At the same time, 197 tonnes of bulk samples were collected from the surface and the average gold grade was 1.64 grams per tonne gold. Once our team completes an in-house preliminary geologic model, the Company believes that only 20 to 30 additional drill holes will be required to calculate a qualified Mineral Resource for this zone, which will become the second zone with a resource in the San Simon district. Additionally, because gold comes right to the surface in this area, the preliminary geologic model demonstrates Paititi's potential to be economic for an open-pit gold mine, like Yamana Gold's nearby Sao Francisco mine in Brazil.

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