Muzhu Mining Ltd. provided a geology overview of the XWG property, which is located in China's "Silver Triangle" with good infrastructure, water, power and road access, along with the Jinqiao Mill just 9km away from the XWG property. The XWG property exhibited high grades of Silver, Lead, Zinc and Copper with some samples returning values as high as; 1,500 g/t Ag, 3.88 % Pb, 6680 ppm Zn and 7% Copper. More than seven (7) individual mineralized veins have been identified with lengths of the known veins from 270 to 1,080 metres with widths varying from 1.0 to
5.0 metres. The Xiao Wa Gou (XWG) property, which is encircled by several operating Silver, Zinc, Lead producing mines in the Henan Province of China, to which Muzhu Mining has an option agreement to earn up to 80% interest in, is situated in the 300 km-long west-northwesterly trending Qinling orogenic belt, on a major structural belt formed by the collision of two large continental tectonic plates in the Paleozoic time period Rocks along the orogenic belt between the two major tectonic plates are severely folded and faulted, offering optimal structural conditions for the emplacement of a myriad of mineral deposits. Several operating silver-lead-zinc mines, including those in the Ying Mining District, occur along this belt. The Qinling orogenic belt is composed largely of Proterozoic- to Paleozoic-age rock sequences consisting of mafic to felsic volcanic rocks with variable amounts of interbedded clastic and carbonate sedimentary rocks. The rocks are weakly metamorphosed to lower greenschist facies, with local areas of strongly metamorphosed lower amphibolite facies. The basement of the belt comprises highly metamorphosed Archean-age rocks of the North China plate, dominantly felsic to mafic gneisses with minor amphibolite, intrusive
gabbro and diabase. The metamorphosed Qinling belt sequence and the underlying Archean basement rocks are intruded by mafic to felsic dykes and stocks of Proterozoic and Mesozoic ages. The dominant structures in the Qinling orogenic belt are west-northwest trending folds
and faults generated during the collision of the two major tectonic plates in Paleozoic time. The faults consist of numerous thrusts having a component of oblique movement with sets of conjugate shear structures trending either northwest or northeast. These conjugate shear zones, which display features of brittle fracturing such as fault gouge, brecciation and well-defined slickensides, are associated with all the important
mineralization recognized along the 300 km-long orogenic belt.