Copper mineralization on the Encrucijada property is reported to have been exploited since the 19th century. More recently the gold potential of the property has been explored by Cominco and by Newmont. Little information is known of the Cominco work other than that at least eight drill holes were completed. More detailed information is available from the Newmont exploration program conducted during 2002 and 2003.

The Newmont program included a regional scale geochemistry survey, airborne geophysical surveys, trenching and sampling, followed by a limited RC drilling program. The samples were subject to analysis using the BLEG method (bulk leach extractable gold), which utilises a catalyst to accelerate the dissolution of gold, silver and copper particles during bottleroll leaching. In addition, samples were analyzed for arsenic, bismuth, copper, iron, manganese, mercury, molybdenum, lead, antimony and zinc using traditional geochemical methods.

An extensive program of rock chip sampling was carried out. Some 594 samples were collected from outcrops and trenches. Thirty-nine samples assayed higher than 0.5 g/t Au and 12 samples exceeded 2 g/t Au. The highest assay was 8.84 g/t Au, derived from altered, silicified volcanic rock. The trenching served to identify epithermal vein mineralization which was subsequently tested by RC drilling.

Geophysical surveys conducted included ground magnetometer and electromagnetic surveys. The total field magnetometer data covers the western two thirds of the property and serves to outline lineaments that are inferred to be tectonic structures. The combination of anomalous gold geochemistry and geophysics led to the targeting of quartz veins related to fault structures in and adjacent to a quebrada (stream gulch) that trends in a north-westerly direction and dominates the topography of the property. The ground magnetic response illustrating the definition of structural features is presented in.

The drilling program was conducted during May and June 2003 during which 20 holes totalling 2,072 m were completed. The holes ranged in depth from 54 m to 150 m and were intended to test four different vein targets. The best intercept obtained was on the C vein where an interval from 50 m to 54 m averaged 1.8 g/t Au. Other interesting intercepts were derived from Vein A in EN-4, 2 m at 1.9 g/t Au and EN-2, 2 m at 1.3 g/t Au. Overall the drilling results were disappointing, however only a very small portion of the property has been drilled and surface sampling has indicated the presence of gold mineralization on this large property that is almost entirely covered with a thin layer of ash tuff and gravel.