The Urumalqui Property is owned 100% by Gitennes. Previously it was a joint venture between Gitennes and Meridian Gold Inc., but on June 17, 2005, the companies terminated the agreement and Gitennes assumed 100% of the project.  On February 1, 2010 Gitennes announced a signed a memorandum of understanding with AndeanGold Ltd. (“Andean”) whereby Gitennes has granted to Andean the right to earn a 60% interest in the Urumalqui project.  Andean must spend $3,000,000 in qualifying exploration expenditures on the project over a four-year term, which shall include a minimum of 3,000 metres of drilling by the end of the second year and 7,000 metres of cumulative drilling by the end of the third year.  Andean must issue 800,000 shares to Gitennes in four tranches of 200,000 shares. The first tranche is to be issued within five days of delivery of the related agreements in Peru, with the remaining tranches upon the first, second and third year anniversaries of the agreements.  Except for the first payment, Gitennes may elect to receive cash in lieu of shares, with the amount not to exceed $25,000, $50,000 and $100,000 with respect to the first, second and third year anniversary date payments, respectively. If the market value of the shares on the respective payment dates exceeds the maximum cash payment amount on such date, the difference will be paid in equivalent shares. Upon Andean meeting the terms and exercising its option, the Company and Andean will form a joint venture to further the development of the property

The property was acquired in 1993 by Minera Andina de Exploraciones, a subsidiary of the SIMSA Group.  Andina optioned the property to Sociedad Minera Cambior Perú S.A., possibly in 1995 or 1996.  According to local sources and field information, Cambior drilled six widely-spaced holes in 1996, apparently on geophysical targets. Five of six Cambior drill sites can be re-located in the field. Andina did not pay its taxes on its concessions at Urumalqui, and they were declared open for re-application in 2002.  Gitennes and Meridian agreed to pool their resources and acquired the concessions in late 2002 and 2003. 

Mineralization: Urumalqui is known as “quartz – adularia” or “low sulphidation” epithermal type mineralization. Two main vein orientations have been mapped on the property.  A NW-SE trend includes the Urumalqui Vein, La Mariscala West Vein, La Mariscala South Vein, and the Penélope Vein.  An east-west trend includes La Mariscala East Vein, Candual East Vein, the Candual West vein zone, and the Candual Vein.  These veins are developed south of the Urumalqui Vein and occur in pyroclastic and andesite flow units.

Three distinct styles of epithermal mineralization have been recognized from surface mapping and drilling on the property:

1)   The main Urumalqui vein is a classic “crack-and-fill” style open-space-filling quartz - adularia structure, characterized by sharp vein boundaries, multi-stage quartz mineralization as banded and crustiform veins, and ore-grade gold and silver mineralization.  Also present are vugs and cockade, bladed, pelletal and breccia textures.  Gold and silver are the analytical elements of interest, with little or no geochemically anomalous arsenic, antimony, mercury, lead, zinc or copper.  Silver minerals include argentite and electrum, while gold reports to electrum.  The only other vein on the property with similar banded, pelletal and crustiform textures is the western portion of La Mariscala Vein;

2)   Brecciated diffuse-walled replacement-style or silicified zones, characterized by fine-grained, grey to black chalcedonic quartz, with highly anomalous to ore grade gold and silver content that are similar to but overall lower than in the Urumalqui style (1) of mineralization.  Locally, quartz replaces clasts and to a lesser extent the adjacent country rock, and volcanic textures can still be recognized.  These silicified zones appear to be oriented vertically in a vein-like fashion.  Mineralization is distinctly anomalous in arsenic and mercury, with erratic but anomalous lead, zinc and antimony.  Penélope Vein, the central and eastern portions of La Mariscala Vein, and veins in the Candual area are of this style; and

3)  A broad zone of leaching and argillic alteration roughly symmetrical about the Urumalqui Vein, comprising silicified, chlorite and sericite-altered, zones marked by fine-grained pyrite that has elevated gold values and silver (the “Envelope”).  Where unoxidized, pyrite has been the only sulphide observed to date, occurring as several percent or more fine disseminated grains and aggregates in well silicified volcanic tuffs and lapilli tuffs.  Gold and silver values consistently in excess of 100 ppb and 20 ppm respectively are common, which increase in tenor toward the vein, and are considered to define the extents of this style of mineralization.  Similar alteration occurs adjacent to La Mariscala Vein.

The principal target on the property is referred to as the “Urumalqui Vein”.

The Urumalqui Vein is a near-vertical zone, up to 20 metres wide, comprising a core of one or two banded quartz veins ranging from 0.5 to 11 metres aggregate thickness, and intervening oxidized vein breccias or altered volcanic rocks.  The vein is exposed at surface over a strike length of 1,500 metres.  Average strike is 125° ± 005° throughout much of this length.  The vein shows a number of minor, northeast-stepping offsets that deflect it with a dextral sense of movement.  There are eight vein segments between offsets, ranging in length from 40 metres to 400 metres.  For the most part, vein outcrop is continuous along each segment.  At least one of the offsets is due to an east-west trending strike-slip fault exposed in outcrop.  Elsewhere along the vein, other significant breaks occur in which the vein does not outcrop. The vein is offset right-laterally where these breaks occur, and it is thought that these are also sites of east-west faulting. 

Results of all the drilling on the Urumalqui Vein is summarized following. The interval reported for “Vein” is the quartz-adularia vein itself, as a miner might see and follow a mineralized structure. 

Gitennes’ exploration drilling at Urumalqui has been done on relatively widely-spaced centres, from 45 to over 100 metres apart, and has concentrated upon the 1,000 metre-long, southeastern and central portion of the main Urumalqui vein. Despite having drilled the vein to depths exceeding 200 metres below surface, the vein structure remains strong and mineralized. All holes are in the “boiling zone”, based upon vein textures, and the potential for good mineralization at deeper levels than those tested thus far is considered to be good. Recent drill results also suggest that further drilling on the 400 to 500 metre-long northwestern segment of the same vein structure is necessary, where 2003-2004 drilling may have been too shallow..

 December 2008

Figure 1 - Longitudinal Section

 

   

Figure 3 - Grid Layout and Drill Plan