Projects

Overview

Located in a highly active mining region, this 1,042 hectare property is 5 kilometers from Coeur d'Alene's Palmajero operation, with recently confirmed deposits of more than 3 million ounces gold equivalent. Recent surveys indicate that Pan American Goldfields' Encino Gordo has comparable geology, and is in a zone with a large hydrothermal precious metal-bearing system.

A Rich History of Gold

• The Encino Gordo project is situated in the same famous mining district which currently hosts Minefinders' Dolores Mine, Alamo Gold's Mulatos mine, Glamis Gold's El Sauzal mine and Mediterranian Minerals' Moris mine.
• In 1996, Blackstone Resources and Insular Explorations commissioned a report on the zone, including mapping a 23 kilometer grid with 468 soil samples, 475 rock chip samples, reconnaissance mapping and sampling outside the grid area. Results indicated that a second phase exploration program was merited.
• In 2005, a 3.1 million ounce gold equivalent deposit was discovered on the property 5 kilometers away on Coeur d'Alene's Palmajero site. This site has a resource of +3 million ounces gold equivalent.

Location of Encino Gordo Project

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Geological Surveys of the Property

Situated 270 kilometers southwest of the city of Chihuahua in the Sierra Madre gold belt, the Encino Gordo Project is characterized by a similar geological setting as that of the Palmajero site 5 kilometers away. Findings by Pan American include:

• Surface sampling indicating the presence of strong mineralized structures, including gold and silver anomalies.
• High gold-copper anomalies, with geochemical sampling similar to that associated with stockwork structures.
• The presence of a large hydrothermal precious metal-bearing system.

Strategy for Exploitation

Pan American Gold Fields (Mexoro Minerals MXOM) owns 100% of three properties in the area and has optioned another three mining concessions to complete the land position needed to develop the exploration program it will establish in this area. Given the strong survey results, with suggested parallels to the Palmajero site, Pan American Goldfields is hastening its drilling program in the structures with gold and silver anomalies. Encouraging results will ensure Pan American exercises its option to acquire the properties. Initially, the Company will carry out detailed surface mapping and sampling to target the optimal drilling site.

These results have been prepared under the supervision of Barry Quiroz, MSc., Pan American VP of Exploration. He has the expertise and authority to verify the authenticity and validity of this data. The qualified person who has reviewed this data is Dana C. Durgin, MSc. Economic Geology. He is a Certified Professional Geologist (CPG #10364) with the American Institute of Professional Geologists, and a Registered Professional Geologist in Wyoming (PG-2886).