Santiago

Introduction:

Santiago is a low-sulphidation, epithermal gold exploration project located in the famous Batopilas district of Chihuahua, Mexico. The 961-hectare property covers several iron oxide-silica-clay alteration zones, one of which (North Zone) surrounds eight parallel, high-grade, gold-bearing, quartz-sulfide veins (see table below). These properties have been owned by the same family for over 100 years and have never been explored by modern methods. Caza can obtain 100% interest in the Santiago property.

Current Status

The 2010 work program planned for the Project includes an expanded mapping and sampling program in preparation for the drilling program planned for Fall, 2010. Activities are underway to obtain permits to complete drill road access to the vein zone and build drill sites to test the vein target and possible extensions to the northwest.

Location and Access:

The Santiago property is located 12 km east of the town of Batopila in the state of Chihuahua, Mexico. Local infrastructure is good as the property is road accessible and a state power line crosses the property.

Ownership:

Caza can acquire a 100% interest in the Santiago concessions (173 hectares) by making US$2 million in cash payments over a 5 year period, spending US$200,000 on exploration within the first 2 years, and by granting a 2% net smelter royalty on mineral production to the vendor.

The Company acquired a 100% interest in a 791 hectare portion of EXMIN's Huimayvo concession (hereafter termed the "Santiago Fraction"), which surrounds the 173 hectare Santiago concessions, as part of the Moris package acquisition.

Geology and Mineralization:

Like most of the epithermal vein districts in the Sierra Madre gold-silver belt of Mexico, such as Ocampo (Gammon Lake) or Tayoltita (Goldcorp), mineralization at Batopila is hosted by the early-Tertiary Lower Volcanic andesites, capped by mid-Tertiary Upper Volcanic rhyolites and intruded by mid-Tertiary granodiorites.

Gold mineralization appears to be associated with disseminated to semi-massive pyrite-arsenopyrite carried within the quartz veins and stockwork zones. Minor disseminated galena, argentite and chalcopyrite have also been observed in the veins. Trace metals associated with the gold bearing veins, such as bismuth, arsenic, and antimony, are present in some of the iron oxide-silica-clay alteration zones outside the high-grade vein zone. Caza is encouraged with the presence of highly anomalous trace elements and considers these probable indicators of the gold mineralization system. The current work program will further explore these geochemical anomalies in an effort to expand the gold mineralization and define additional drilling targets for 2010.

Caza geologists sampled three of the eight know veins in the North Zone and channel sampling returned consistently high-grade gold assays as follows:

 

Vein	Width		Gold
	(m)	(ft)	(gpt)	(opst)
Veta Verde	2.5	8.2	17.7	0.52
	incl. 1.0	3.3	24.1	0.70
Los Tajos	5.0	16.4	7.0	0.20
	incl. 2.0	6.7	13.7	0.40
Veta Blanca
Sample 1	2.3	7.5	30.3	0.88
	incl. 1.1	3.6	60.3	1.76
Sample 2	2.1	6.9	14.9	0.44
	incl. 1.0	3.3	25.3	0.74