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Exhibit 10.2
 
BACO (Pativilca) PROYECT

Ancash Department-   PERU
MRC1 Exploraciones E.I.R.L.

The Baco project consists of a gold production operation which has a cyanidation
  plant of 5 0 TMD capacity and about 2.100 hectares of m ining properties with
the presence of gold veins in the north-central coast of Peru .

Location and Access - The project is located in the last western reinforcement
of the west ern of c entral Andes of Peru. About 200 km NNW of Lima .
Politically belongs to the district and province of Huarmey , Anchas dep artment
.   It is accessible by highway from Lima , according to the following itinerary
:

Lima - Pativilca
200 km .
Asphalt Highway
Pativilca - Cruz de Arévalo
33 km .
Asphalt Highway
Cruz de Arévalo - Proyecto
4 km .
Affirmed Highway
     
Total Lima - Proyect
237 km .
(4 Hours)

Topography and Weather.- The project area is at a n altitude between 300 and
1.000 m .a.s.l. Its relief t is rugged and moderately disected by dry valleys
and ravines. It has an arid coast weather, most of the year is dry and presents
fog and drizzle during the winter months.

Property Mining.-  C onsists of 6 mining valid concessions that are a total of
2.100 hectares of extension .

RIGHT
CODE
HECTARE
TITULAR
VIA CARIÑO
01-00823-04
100
MRC1 EXPLORACIONES E.I.R.L.
LAGRIMAS DE ORO
01-02227-04
200
MRC1 EXPLORACIONES E.I.R.L.
BONANZA DE ORO
01-02337-04
200
S.M.R.L. ÉXITO XXIII
GIANDERI XXVII
01-02723-04
1000
S.M.R.L. ÉXITO XXII
GIANDERI XXXI
01-02775-04
400
S.M.R.L. OMAY 300
GIANDERI XXX
01-02776-04
200
MRC1 EXPLORACIONES E.I.R.L.
   
2100
 

Lupine Formation (Casma group) :

A ndesitic lavas of marine origin, in pad s , locally porfiritics ; l ying in
accordance with the Breas formation, which passes in gradual way. Locally
presents silcificated areas and marcasite dissem ination , possibly associated
with a metarmosfism contact with intrusive rocks. It is Albiana age east to s
uperior.

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Tonalita Huaricanga (Santa Rosa Complex) :

Unit intrusive outcrop with varying compositions between a diorite cuarcífera
and tonalita basic. Locally enriches in quartz and feldspar granodiorite. It
lower tertiary age.

Diorite Paccho (Santa Rosa Complex):

I ntrusive complex unit that stands between metadiorite , diorite quartzly and
monzodiorite cuarcifera of fine grain, in which graduatioly contacts are more
frequent than clear contacts. It is lower tertiary age.

Barrages Deposits (Quaternary Recent):

They are powerful deposits of conglomerates badly classified, badly stratified
and with rollings songs moderately round to angular that are deep in the valleys
or depressions of the zone. They form inclined moderately slopes and mainly
present fragments of local origin generally.

ECONOMIC GEOLOGY:

The rocks outcrop s in the area have suffered tectonic processes that have led
to fractures and folds. The fracturing has been used by fluids from the
intrusive to form veins, bodies of divide and dikes.

System Stripes :

The main system of veins is NE-SW direction and 65 º-75 º SE   dip. This system
has ties cimoides and generally branches to the west.

The length of the outcroppings varies from a few meters to more than one
kilometer, its average power is 0.20 m . to 0.50 m . a nd are stationed in
andesites of the Lupin formation .

The second system is N-S direction and is more powerful, between 1.00 and 2.00
meters .

The veins mineralogy is simple stuffed with quartz gold, iron oxides (limonite,
jarosite and hematite), calcite, barite and sparks malachite, galena and blenda.

The alteration of the boxes consists of an argiliza tion and weak to moderate  
propylene.

Mineralized Areas and Mineralized Corridor :

There were three areas located with the presence of mining work and mining
outcrops of gold veins that belong to the two systems, NE-SW and N-S, which form
a corridor of about 5 –   6   kilometer lenght . It may be the presence of a
stock work at the intersections of the two vein systems , specially in the area
2.

Areas 1 and 2 are located in central and s outh- w est of m ineralized c orridor
, are the lower areas and have road access, the veins of these areas are being
prepared by the Company. They are located within the concessions BONANZA DE ORO
and LAGRIMAS DE ORO .

The zone 3 is located at Nor-East, in the highest part, it worked by informal
miners, road access reaches about 200 meters below the proceedings inside the
concession VIA CARIÑO.

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SAMPLING AND MINES WORK

R epresentative S amples have been taken from the different tasks and worked
veins by informal miners, which gave the following results:

TABLE OF GEOCHEMISTRY ANALYSIS OF SGS

Element
Au*
Au-140M
Au+140M
W_Mtra
W-140M
W+140M
Ag
As
Unit
g/TM
g/TM
g/TM
g
g
g
ppm
ppm
Method

FAXONW
FAXONW
 FAXONW
FAXONW
FAXONW
FAXONW
ICPREC
ICPREC
Limit Detec.

0,02
0,02
0,02
0
0
0
0,2
3
PT-02
19,38
15,01
109,5
515,1
491,3
23,8
4,8
1102
PT-03
2,49
2,4
3,99
504
474,7
29,3
6,6
200
PT-06
92,12
59,35
877,5
519,3
498,5
20,8
65,4
>10000
PT-07
38,69
28,9
233,8
501,9
477,9
24
20,8
>10000
PT-08
14,11
10,72
82,54
524,2
499,4
24,8
17,8
>10000
PT-09
108
72,71
671,6
500
470,5
29,5
40,3
>10000
PT-10
31,84
23,07
193,9
509,9
483,7
26,2
9
>10000
PT-11
21,09
17,51
81,64
501,2
473,2
28
6,5
8914
PT-12
12,75
11,67
33,18
489
464,5
24,5
9,7
1072
PT-13
7,33
7,32
7,48
504,8
481,8
23
0,7
1964
PT-14
1,42
1,43
1,17
494,5
470,5
24
0,2
3382
PT-15
11
9,84
34,89
500
476,7
23,3
2,6
5094
PT-16
0,09
0,1
-0,02
477,6
453,6
24
0,3
49
PT-17
0,06
0,07
-0,02
465,8
442,3
23,5
0,3
34
PT-30
79,59
71,02
252,1
504,8
480,9
23,9
20,5
859
PT-31
47,24
42,15
147,2
494,5
470,5
24
10
1119
QB-01
0,07
0,08
-0,02
540,5
516,8
23,7
0,2
13
QB-02
0,08
0,06
0,48
503,8
480,8
23
0,2
é12

Also , a sampling on 100 meters of outcrop of the “Cobre” vein in the west zone
of the project, gave the following results:

 
SAMPLE
LAWAugr/TM
   
MC–01
0.38
MC–02
1.60
MC–03
4.49
MC–04
24.93
MC–05
5.07
   
MC–06
2.05
MC–08
2.38
MC–09
1.06
MC–10
25.79
MC–11
4.03
MC–12
0.44
MC–13
12.06
MC–14
2.28
MC–15
29.70
MC–16
11.86
MC–17
2.43
MC–18
3.47
MC–19
1.34
MC–20
3.56
MC–21
4.97
MC–22
0.67

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Image [nilam_image1.jpg]
 

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Image [nilam_image2.jpg]
 

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