• Tara Gold owns option to earn 100% interest.
• Assessing options for advancement.

The Picacho Gold Mine is located within the Northern Sierra Madre Gold Belt, 120 kilometers south of the United States Border, in Sonora State, Republic of Mexico.

The Picacho mine, a 3,236 hectare mining concession, is 24km by haulage road from Bacoachi, a town with a population of approximately 2000 people serviced by the national electrical grid, a 1200m airstrip, a paved highway accessing the nearby mining town of Cananea and the State capital of Hermosillo.

The previous owners have been exploiting an up to 5 meter wide vein structure by driving a 5 meter by 5 meter ramp declining 8% extending over 1km in length. Production came from several working faces averaging 4 - 6 meters in width, dipping at 700, with very competent hanging wall conditions. The owner reported, and the company has verified, ore grades averaging 5 grams gold and 15 grams silver. The structure that hosts the mineralization is 85% silica creating a tailings product that can be sold as a flux agent to the local smelters for US$35.00/tonne, an amount that is estimated to generate sufficient revenues to cover current mining and milling costs. Management believes the ore body width, dip, and hanging wall competency will offer very good flexibility by allowing for a variety of mining methodologies that can be employed to contribute enhanced efficiencies and minimize pillar volumes and dilution.

The mine includes an extensive processing facility currently capable of 250 tonnes/per day of ore throughput. The mill includes a 1,500 tonnes/day jaw crusher, a 500 tonnes/day cone crusher, 2 ball mills, 2 floatation cells (400 tonnes/day), 2 caterpillar gen-sets and a large shop facility. The rolling stock consists of 3 Wagner ST8 scoop trams, a Gardner Denver 2 boom pneumatic jumbo, a stationary hydraulic exploration drill, 2 compressors, 2 Cat D8 and D9 dozers, a Clarke Michigan front end loader, 1 track loader, haul trucks and ancillary mining equipment. The equipment is in good serviceable condition.

Tara Gold is assessing options for advancement. The project is able to move towards produciton start-up by refurbishing the existing mill, crushing circuit and rolling stock. The initial focus of any exploration program will likely be resource delineation. Initial interpretation suggests that there are a number of parallel structures that host the mineralization and that the mineralization extends over a strike length of 1,500 meters. Ore grades average 5 g/t gold and 15 g/t silver over a 1 km, 6 m wide vein.