The 100% owned Erika project was initially explored for its epithermal potential, which is indicated by steam heated acid sulphate alteration, mercury mineralisation and replacement silicification developed in volcanic rocks overlying carbonate rocks.  These are indicative of what can be expected to occur over high grade silver-gold vein systems such as the nearby Taxco vein system which has produced over 1 billion ounces of silver.  Tarsis drilled holes ER-11-01 to ER-11-08 (2,546 meters) based on prior geological modeling coupled with geochemical and geophysical anomalies.  This drilling intersected a series of limestone, clastic sediment and volcanic horizons with trace levels of gold, ranging from below detection to 55 ppb but significant values for arsenic ranging from below detection to 6,080 ppm.

Tarsis geological staff subsequently inspected historical drill core from 1997, specifically hole EK-03, which reportedly returned a 5.0 m interval averaging 0.48 g/t gold.  This intersection is largely comprised of decarbonatized dirty siltstone containing patchy orpiment and realgar preferentially replacing decarbonatized matrix and open spaces within vuggy multi-phase calcite veins. Medium-to coarse-grained crystalline diagenetic pyrite is also disseminated throughout the interval.  The mineralization appears to be largely stratabound although there are a number of crosscutting structural features in proximity to the decarbonatized and mineralized interval.

Holes ER-11-09 to ER-11-15 were subsequently drilled targeting sediment-hosted gold mineralization and they appear to confirm the presence of such a system.  The Company is reviewing results and determining the best vectoring tools to look for higher-grade and thicker intervals of mineralization during the next phase of exploration at Erika.

Soil anomalies elsewhere on the property contain gold in association with anomalous mercury, arsenic, thallium and antimony. Tarsis is following up on these anomalies.