Limited diamond drilling and metallurgical test work at theMiraflores property by Kedahda and the
Company has been successful at delineating a significantlow-grade, large tonnage gold-silver deposit atMiraflores
that is potentially amenable to bulk-tonnage mining and mineralextraction techniques. The Miraflores property
consists of a gold-bearing breccia body exposed over a 250 by 250m area on surface that extends to at least 600 m
vertical depth. Previous B2Gold drilling returned up to 124 m at1.3g/t Au and 204 m at 1.2g/t Au. The 2008
program will consist of scoping work and surface sampling.
No further work was done that I could find on the property then B2Gold just dropped the property????
Miraflores Property
The Miraflores property is located within the municipality ofQuinchia, Department of Risaralda, Republic of
Colombia, approximately 190 kilometres west-northwest of theColombian capital of Bogota and, approximately 55
kilometres north of Pereira, the regional capital of theDepartment of Risaralda. The Miraflores property consists
primarily of one granted exploration and exploitation contracttotalling 124.09 hectares. The exploitation license
was granted to AMM by the Colombia Ministry of Mines in 1987 andthe exploitation license has a 30 year term
from the time of grant. The exploitation contract was extended fora term of 15 years in 2003 and is currently valid
until October 13, 2018. The contract rights are presently under anoption granted by the AMM to AngloGold
Colombia. According to the option agreement executed April 25,2005, AngloGold Colombia has the right to earn
100% interest in the exploitation license by making a series ofstaged cash payments totalling approximately
US$3,830,000 to the AMM over a period of five years from the dateof execution. In May 2008, Miraflores
Holdings Ltd., indirectly a wholly-owned subsidiary of theCompany, acquired all of AngloGold Colombia’s right,
title and interest under the option agreement to. As a result,Miraflores Holdings Ltd. held the right to earn a 100%
interest in the Miraflores property.
Exploration of the Miraflores property has shown that it maypresent an opportunity for a lower tonnage, highergrade
underground mining operation, but has not identified a significantlarge tonnage open pittable gold-silver
deposit. Accordingly, the Company concluded that the Mirafloresproperty does not fit within the strategic focus of
the Company and its long term objectives and, on March 24, 2009,gave notice to AMM that the Company will not
be making any further payments to AMM under the option agreement.As a result, on March 24, 2009, the
Company’s rights to the Miraflores property reverted back to AMMin accordance with the terms of the option
agreement.