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|  JV Partner: Netco Silver Inc. Target Silver-Gold-Copper in Epithermal Breccias NI 43-101 Report for Toruel  Download PDF (29.3 Mb)Joint Venture Terms Under the terms of the agreement, NEI can earn a 50% interest during the next three years by paying an aggregate of $200,000 in cash, issuing 3,150,000 NEI common shares to Marifil and making work expenditures of $2,800,000 on the Property. NEI can earn a further 10% over the next two years by providing Marifil with a pre-feasibility study on the Property and paying the Company $100,000 per year. NEI can earn a further 10% over the next two years by providing Marifil with a feasibility study on the Property. At that time, all further expenditures shall be shared, with 70% covered by NEI and 30% by Marifil. However, at Marifil's sole option, the Company can elect to be carried through to the commencement of commercial production on the Property, in which case NEI will earn an additional 5% interest, bringing its interest to 75%. In the event NEI fails to provide the Company with a feasibility study in the allotted time then, at Marifil's option, NEI's interest may be reduced to 49%. Comments The ore targets are large epithermal veins and breccias hosted in Jurassic volcanics. The veins and breccias contain silver-copper-gold plus lead and zinc. Some of the drill intercepts contain bonanza grades exceeding 1,000 g/t silver and 5% copper. Veins and breccias occur across a belt more than 2 km wide and more than 8 km in length. The Company has drilled 63 holes and is now calculating preliminary reserves. Business / Work Plan Over the next three months, Netco will embark on its first phase of exploration on the Toruel project, which will include detailed mapping and sampling of the property, as well as geophysical work and trenching. The goal is to gain a better understanding of the true scope of the previously discovered Toruel vein system, as well as to investigate the entire property for additional veins and potential that may exist outside of the Toruel vein structure. Hectares 43,621 Overview The Toruel property is located in Rio Negro Province near the small town of Los Menucos. The area was exploited in the 1940s by small scale local miners looking for fluorite. The most prominent mineralization on the property is the Toruel vein. This vein system comprises a fissure vein with numerous smaller veins splitting off the main vein to form smaller, sub-parallel veins. The main vein system can be divided into three blocks, an eastern block, central block, and a western block, each block separated by high angle faults. The western block is shorter than the east block, geochemical values are lower (although still strongly anomalous), but the vein system is verywide, ranging up to 150 meters. Company geologists believe these outcrops represent the top of a strong hydrothermal system. The central block is 350 to 400 meters wide and occupies a valley. Only a few outcrops are present but all show very high grades in silver and copper. The western block has strongly silicified areas >10m wide, along the main structure and with a strong sericitic alteration assemblage. The central part of the structure is a quartz vein 0.50 m thick. The gold anomalies are lower than 1 g/t and with silver values generally less than 200 g/t . The eastern block shows more pronounced topography and forms a low ridge up to 20 m high and 100 m wide. The vein system has a geometry of splays and horse tail veins and veinlets splitting off of the main structure. This part of the vein can be traced for more than 1,200 m along strike and is still open-ended. The main part of this vein averages more than 5 m wide and surface channel samples show silver values averaging in excess of 400 g/t with one sample containing 5,871 g/t silver. Maps
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