In September 2007, Carl Windels presented a 40-page report in association with Quantec GeoScience Chile Ltda. and previous data collected
from Asarco's exploration of the area in 1999. In his conclusion of the report Mr. Windels stated the following:
Economic models, the 2007 and 1999 drill hole assays, metallurgical data and the new gravity UBC GRAV3D inversion will be used to calculate an indicated reserve for the primary target.Additionally, Chanaral Resources, Inc. has contracted Quantec GeoScience Chile Ltda. to conduct a magnetic survey of the proposed drill area to give a more accurate reading of the potential resource. This report is expected by the end of December 2007.
In addition, an inferred mineral resource from the GRAV3D inversion, drill holes, and metallurgical test will be calculated for the exploration targets at the South, Central, and North Anomalies.
This program is expected to delineate a significant inferred mineral resource at the combined targets exceeding 500,000,000 MT at a grade of greater than 45% magnetized Copper prospects will also be evaluated for the future exploration programs within and adjacent to the present Hanwel Chile S.A. concessions.