The El Milagro Project is located in the central plain of Tamaulipas State in Mexico. It lays along the furthest southern extensions of the Chihuahua trough, 60 kilometers northwest of the city of Tampico on the coast of the Gulf of Mexico. Alkaline dikes and sills along the caldera ring fracture carry semi-massive sulphide stockwork zones in altered intrusive rocks. Silver grades reach bonanza levels often in excess of 2 kilograms per tonne and combined lead-zinc grades usually exceed 10%.

Three types of mineralization have been located on the property: silver-lead-zinc stockworks barite-calcite-jasperoid veining, in alkaline intrusive rocks and disseminated rare earth elements in nephenilites and carbonitites.

The primary target defined within the Milagro Concessions is the Santa Maria Vein, a 1 - 4 meter wide tabular subvertical NNE trending breccia vein with a lead-rich polymetallic assemblage and bonanza silver grades. This vein, exposed in the Santa Maria Mine, is the only known occurrence of this style of mineralization on the property. At the Santa Maria Mine, mineralization occurs in dike materials over an exposed width of one to four metres and has been explored along 450 metres of strike and to a depth of 30 metres at the mine. Prospect pits sampled by Consejo Recursos Minerales (CRM) returned assays of 111 grams/tonne within one meter of surface just below a barite vein outcrop. A one metre chip sample from within three metres of surface assayed 5.4 kilograms/tonne silver.

Silver values across the dike in the Santa Maria workings vary from 0.8 to 3.8 kilograms/tonne over 4 metres. Accompanying base metal values include lead assays ranging from 10.3% to 12.3% and zinc assays from 2.8% to 6.8%. Anomalous copper values are also associated with the mineralization. Mineralization is very low in arsenic, mercury and cadmium and only slightly elevated in antimony.

The Milagro Mine was a fortuitous and relatively recent discovery and as such it is probable that other silver-rich vein and replacement zones exist within the large area covered by the Milagro and Santa Maria Properties.