Bilbao Zinc Project and La Laguna Silver Project - Mexico

Status: Bilbao Pre-Feasibility                 
           La Laguna: Feasibility

In August 2007, PRRF entered into an agreement with AIM-listed Minco Plc to finance feasibility studies and development of two projects in Zacatecas, Mexico: the La Laguna Silver Project and the Bilbao Zinc Project, owned by subsidiary company Orca Minerals Limited. Orca Minerals Limited has subsequently listed on the TSX Ventures exchange as Xtierra Resources in September 2008.  The agreements providing PRRF options to invest at the project level remain in place.   The La Laguna Silver Project contains silver and mercury tailings remaining from silver production that started in the 15th century and lasted to the early 1900s.  An independent feasibility study prepared in 2005 determined a reserve of 7.9 million tonnes at a grade of 59g/t silver. An update of this previous work has been undertaken during 2008 and is intended to be completed this year.

The Bilbao Zinc Project has an inferred oxide resource defined in a 1997 pre-feasibility study of 3.2 million tonnes at a grade of 3.9% zinc equivalent.  A subsequent drilling program identified a sulphide resource below the oxide cap of similar size and grade as the oxide resource with the area surrounding the existing resource prospective for resource extension. Exploration continues to delineate extensions to the known mineralization at Bilbao and metallurgical studies have progressed throughout 2008 to scope out the likely project development plan.

Link to Xtierra website