Pimentón

A new Cu-Au porphyry deposit in Farellones

This report by Rio Tinto dated June 6, 2006 was prepared as an Executive Summary
and is not compliant with National Instrument 43-101

1 Pimentón Project –June 6, 2006

Summary
•Exploration was carried out under an LOU between SAGC
and Rio Tinto, signed in March 2005

• 8 holes were drilled totalling 3891m of diamond drilling

• A very well mineralised copper-gold porphyry system was

discovered

• Best results include 279m 0.4% Cu - 0.43g/T Au and 70m

0.46% Cu - 0.49g/T Au

• Results of exploration programme conducted by Rio Tinto

have added a significant value to the Pimentón project
2 Andean District - Chile Exploration June 6, 2006
 Pimentón 34m @ 0.13% Cu &
0.14g/t Au, from 188m
2
Legend 136m @ 0.17% Cu &
0.04g/t Au, from 627m
Lithology 8
Diorite porphyry 4
1
Volcaniclastics
6
Tuffs 5
Tourmaline breccia

Alteration
Potassic
Phyllic
7 Plant
Propylitic

Auriferous quartz veins Camp

RT diamond drill holes
Other diamond drill holes N
86m @ 0.15% Cu &
Proposed drill holes 0 m 500 0.06g/t Au, from 11m 3

3 Pimentón Project –June 6, 2006

 Pimentón
Schematic Cross Section
Pimentón Valley Valle Hondo
Lithology

Moraine 2
6 4
Volcaniclastics
70m @ 0.46% Cu &
Early porphyry 0.49g/t Au, from 100m 34m @ 0.13% Cu &
0.14g/t Au, from 188m
465m
Intermineral 279m @ 0.4% Cu &
porphyry 0.43g/t Au, from 312m
626m
Late porphyry
685m
lt

Tourmaline
u
Fa

breccia

RT diamond
drill holes N
Other diamond
drill holes 0 m 500
4 Pimentón Project –June 6, 2006
 Intermineral diorite porphyry

Late diorite porphyry

5 Pimentón Project –June 6, 2006

Pimentón – Hole 4 330m
Cu & Au mineralisation
in potassically altered
early diorite porhyry
0.53% Cu – 0.56 g/t Au

6 Pimentón Project –June 6, 2006

Pimentón Hole 6 128m
Early diorite porphyry
with A-veinlets and
chalcopyrite – bornite
mineralisation

7 Pimentón Project –June 6, 2006

Early diorite porphyry

Intermineral
diorite
porphyry

8 Pimentón Project –June 6, 2006

Intermineral Diorite Early diorite porphyry
porphyry
9 Pimentón Project –June 6, 2006
Intermineral diorite Early diorite porphyry
porphyry
10 Pimentón Project –June 6, 2006
 MODELO GEOLOGICO
PREDICTIVO

Valle Pimentón
Valle Hondo
Lithology

Moraine
2
Volcaniclastics
6 4
MODELO GEOLOGICO CON
Early diorite
porphyry
70m @ 0.46% Cu &
0.49g/t Au, from 100m 34m @ 0.13% Cu &
INFORMACION DE NUEVOS
Intermineral
diorite porphyry
(0.8% Cu equivalent)
465m
0.14g/t Au, from 188m
SONDAJES
279m @ 0.4% Cu &
Late diorite 0.43g/t Au, from 312m
porphyry (0.7% Cu equivalent) 626m
Tourmaline 685m
ult

breccia
Fa

RT diamond
drill holes
Other diamond
0 M 500
drill holes

11 Pimentón Project –June 6, 2006

 A

B Vetas Qz Leached
Argilica I Au Epitermal Pórfido
Hm Jr Diorítico
E.Sec. Pórfido Tardío - sin
Diorítico vt qz
Cc/Py Intermineral
Argilica-Seric

Vt qz A Pórfido
truncada Diorítico
Intermineral
C
Bx
Termal Vetas Au Mesotermal
Esp-Cp

Sericita
Sericita verde Calc-Ep Pórfido
Br act-Qz-Ep-Esp- Diorítico
mgt Temprano
Pórfido
Biotita Diorítico
Vetillas D Temprano
Cp(+) Vetilla B (Py)
(Mo)

Biotita-FK-mgt Pórfido Cu
Stockwork
Vetilla A

Cp-Bn

Vt qz A – cp

12 Pimentón Project –June 6, 2006

Unidad Columna Litología
A
Andesita porfídica
Fm.
B
gruesas y afanítica
A con intercalaciones
brechas volcánicas
F
A
R
E
B
Toba soldada
C
L
L Toba cristalina-lítica
O
N
E Andesita porfídica,
S aglomerados,
C areniscas tobáceas y
andesita grano fino

13 Pimentón Project –June 6, 2006

 2
SONDAJES PIMENTON
8

4 1 2005: 3 POZOS DDH – 1.822,9 m

5
6
2006: 5 POZOS DDH – 2.068,2 m

TOTAL 3.891,1 m
7 Plant

Camp
RIO TINTO

0 M 500 PIMENTON

14 Pimentón Project –June 6, 2006

 CONTROL DE CALIDAD
CONTROL DE CALIDAD DE STANDARD ALTAR 1 CONTROL DE CALIDAD DE STANDARD ALTAR 1
PM-DD-004 PROYECTO PIMENTON 2006 PM-DD-006 PROYECTO PIMENTON

11000 110 0 0
Cu PPM

10000

Cu PPM
10 0 0 0
9000
9000
8000
8000
1 3 5 7 9 11 1 3 4 6
RANGO SUP ERIOR (VALOR 10007 P P M) RANGO SUP ERIOR (VALOR 10007 P P M)
B A TC H
BATCH RANGO INFERIOR (VALOR 9237 P P M) RANGO INFERIOR (VALOR 9237P P M)
STANDARD STANDARD

CONTROL DE CALIDAD DE STANDARD ALTAR 2 CONTROL DE CALIDAD DE STANDARD ALTAR 2

PM-DD-004 PROYECTO PIMENTON 2006 PM-DD-006 PROYECTO PIMEMTON

6000 6000
Cu P P M

Cu PPM
5000 5000

4000 4000
2 4 6 8 10 12 2 5 7
RANGO SUP ERIOR (VALOR 5282 P P M)
RANGO SUP ERIOR (VALOR 5282 P P M) B A TC H RANGO INFERIOR (VALOR 4779 P P M)
BATCH RANGO INFERIOR (VALOR 4779 P P M)
STANDARD STANDARD

CONTROL DE DUPLICADO CONTROL DE CALIDAD DUPLICADO

PM -DD-004 PROYECTO PIM ENTON PM-DD-006 PROYECTO PIMENTON
10000
10000 Cu PPM 8000
C u PP M

6000
5000 4000
2000
0 0
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7
BATCH DUPLICADO PADRE BATCH DUP LICADO P ADRE
DUPLICADO HIJO DUP LICADO HIJ O

15 Pimentón Project –June 6, 2006

 SECCION LITOLOGIA-ESTRUCTURA

Valle Pimentón
Valle Hondo
Lithology

Moraine
2
6 4
Volcaniclastics
Early diorite
70m @ 0.46% Cu &
porphyry 0.49g/t Au, from 100m 34m @ 0.13% Cu &
Intermineral (0.8% Cu equivalent) 0.14g/t Au, from 188m
465m
diorite porphyry 279m @ 0.4% Cu &
Late diorite 0.43g/t Au, from 312m
porphyry (0.7% Cu equivalent) 626m
Tourmaline 685m
ult

breccia
Fa

RT diamond
drill holes
Other diamond
0 M 500
drill holes

16 Pimentón Project –June 6, 2006

 SECCION ZONA MINERAL

Valle Pimentón
Valle Hondo

Mineralisation

Py (<0.1% Cu) 2
6 4

Cp - Py (~0.2% Cu)
70m @ 0.46% Cu &
0.49g/t Au, from 100m 34m @ 0.13% Cu &
Cp > Py - Bn (0.8% Cu equivalent) 0.14g/t Au, from 188m
465m
(~0.5% Cu)
279m @ 0.4% Cu &
Cp >> Bn 0.43g/t Au, from 312m
(0.7% Cu equivalent) 626m
(> 0.7% Cu) 685m

RT diamond
drill holes
Other diamond
drill holes
0 M 500

17 Pimentón Project –June 6, 2006

 ZONA DE ALTERACION

A
P

K B
Ca-Na
C
S-C
C
S

18 Pimentón Project –June 6, 2006

 RESULTADOS DE LEYES Cu - Au
HOLE HOLE
PM-DD-004 PM-DD-005
GRADE AVERAGE GRADE AVERAGE
FROM TO LARGE m Cu% Au gr/tn FROM TO LARGE m Cu% Au gr/tn
83.7 681.15 597.45 0.28 0.32 69 332 263 0.12 0.10
INCLUYE INCLUYE
FROM LARGE m Cu% Au gr/tn FROM LARGE m Cu% Au gr/tn
148.5 56 0.30 0.31 69 44 0.20 0.22
259 49 0.22 0.22 151 20 0.32 0.15
312 279 0.40 0.43
(312) 385 121 0.44 0.46
(312) 553 35 0.44 0.46
591 37 0.22 0.25 2
600 26 0.23 0.25
8
HOLE
PM-DD-006
4 1
GRADE AVERAGE 5
FROM TO LARGE m Cu% Au gr/tn 6
95.5 464 368.5 0.23 0.26
INCLUYE
FROM LARGE m Cu% Au gr/tn
100 72 0.46 0.48
(100) 106 58 0.50 0.52
224 34 0.21 0.21 7 Plant
280 20 0.23 0.27
388 48 0.33 0.43
Camp

0 M 500

19 Pimentón Project –June 6, 2006

 Valle Pimentón
Valle Hondo

Mineralisation

Py (<0.1% Cu) 2
6 4

Cp - Py (~0.2% Cu)
70m @ 0.46% Cu &
0.49g/t Au, from 100m 34m @ 0.13% Cu &
Cp > Py - Bn (0.8% Cu equivalent) 0.14g/t Au, from 188m
465m
(~0.5% Cu)
279m @ 0.4% Cu &
Cp >> Bn 0.43g/t Au, from 312m
(0.7% Cu equivalent) 626m
(> 0.7% Cu) 685m

RT diamond
drill holes
Other diamond
drill holes
0 M 500

Metraje Abundancia relativa % Leyes vetillas

(m) magnetita calcopirita bornita % Cu gr/tn Au Qz
197 4 2a3 0.27 0.38 B
PM-DD-004 330 2a3 0.31 0.38 B
357 3 a 3,5 1,5 a 2 traza 0.33 0.31 AyB
419 3a4 2,5 a 3 0.30 0.40 EB-B-D
575 4a5 1,5 traza 0.40 0.47 EB-A-B

20 Pimentón Project –June 6, 2006

 Los Pelambres
4000 m.a.s.l Breccias
K-alteration
Pimentón Volcanics and plutons 22-12 Ma
10-6.9 Ma
Late porphyries >6 Ma
Disputada
3500 m.a.s.l
Pimentón

Sericite Secondary Biotite

Pelambres 3000 m.a.s.l
10.37 +/- 0.19 Ma 9.94 +/- 0.14 Ma

Los Bronces- Rio Blanco

K-alteration
>5.4 Ma
2500 m.a.s.l Volcanics 21-14 Ma
Late porphyries 5.2-3.9 Ma

Plutons 20-7.6 Ma Breccias 7.3-4.2 Ma

Lowest extraction level 1983 mts 2000 m.a.s.l El Teniente Alteration

Volcanics 14-5.6 Ma >4.4 Ma
Late dykes 3.8-1.8 Ma

Plutons 8-7 Ma Braden Breccia

Teniente Porphyry
1500 m.a.s.l 4.6-4 Ma

Mineralisation drilled to at least 1200 mts Teniente

22 20 18 16 14 12 10 8 6 4 2 0 Ma

21 Pimentón Project –June 6, 2006

Conclusions and recommendations
• A large Cu-Au porphyry deposit was identified in the
Pimentón valley under relatively shallow moraine

• This new Cu-Au deposit is one of the most significant

discoveries in the Farellones belt in the last years

• Although the Cu and Au grades can be considered

subeconomic at this stage, there is potential for a high
grade core in depth

22 Andean District - Chile Exploration June 6, 2006

Conclusions and recommendations (cont.)
• It is recommend to drill a few deep holes in the main
valley to evaluate the vertical extension of mineralisation

• Potential resources of several hundreds million tonnes

is thought to be a realistic scenario

• Results of exploration programme done by Rio Tinto

have added a significant value to the Pimentón project
and subsequently to their stakeholders

23 Andean District - Chile Exploration June 6, 2006