The Tabaco Property already has a compelling history. It saw small-scale, rudimentary production of gold and silver as far back as the late 1800s. More recently, high grade copper, gold and silver was extracted from shallow mine workings between the 1930s and the late 1960s. And in the mid 1960s, a European mining company conducted a 56-hole drill program that suggested a surface oxide copper resource of about 20 million tonnes grading 1 per cent copper. Additionally, significant gold and silver values were also encountered at that time. This drill program, however, only probed about one quarter of the known area of the surface mineralization and only to a depth of about 76 metres, though most of the copper oxide sits within 30 meters of the surface.

Nonetheless, these very encouraging results were not capitalized on due to a precipitous deterioration in Chile's political climate at that time. This situation has long since improved though the Tabaco Property languished for many years until it was "rediscovered" by associates of PBX a few years ago. Again, the property's resource base is confined to the drilled area and covers only 750 metres of the known 2,400-metre long strike length of this prospect. Hence, there exists the potential of doubling or tripling this resource by way of step-out drilling along the strike length.

However, this discovery may yet prove to be merely the "icing on the geological cake." By way of explanation, a much larger copper-gold porphyry target, with a potential for 200 to 500 million tonnes, underlies the surface oxide discovery zone. A number of key telltale indicators point towards this tantalizing possibility. Most compelling of all is the presence of a 2.4-kilometre long induced polarization anomaly (an X-ray of sorts of a large metals-infused rock formation). Since PBX acquired the property a little over a year ago, the company has commenced drilling on a 5,000-metre program. These recently released results have so far corroborated the findings of the extensive drill hole program that was conducted in the 1960s and have uncovered the primary sulphide source material for the oxide copper.

These new holes encountered high-grade intersections in the primary sulphide assaying as high as 1.63% copper. And one recently reported hole encountered a 68-metre section grading 0.83 per cent copper. More importantly, these holes also point to the likely existence of a deeper-seated main mineralized body that is synonymous with the 2.4-kilometre by 300-500 metre geophysical anomaly. A number of deeper reconnaissance holes will likely be undertaken later this year to test the existence of a major "company-maker" copper-gold porphyry deposit. It is also worth noting that this project has ready access to good infrastructure and can be worked year-round. This situation greatly enhances the prospects for the property's economic viability.

PBX also has an option to acquire a 100 per cent interest in an expansive 3,600-hectare iron-oxide-copper-gold property. It is located in the heart of a mining camp that is also being extensively explored by the global mining heavyweight BHP Billiton. Named the Zulema Property, PBX's prospect displays a very similar geological "footprint" to the prolific Candelaria Mine (500 million tonnes grading 0.95 per cent copper and 0.22 g/tonne gold) that is situated only 40 kilometres away. This open pit mine is 650 metres deep and ore-grade intersections have been encountered to at least 800 metres. PBX's management asserts that there is excellent potential for the occurrence of a Candelaria-type deposit on the Zulema Property. Such a buoyant viewpoint is underscored by the fact that the property lies along the same fault zone as the Caldelaria mine.

More significantly, however, a 2002 geophysical exploration program has outlined a large 1.2-kilometre by 1-kilometre induced polarization anomaly that overlaps an expansive airborne magnetic anomaly. (Such corroborative geophysical exploration techniques act like X-rays to detect metallic structures or deposits below the surface). The effectiveness of such surveying techniques is well-established and is further reinforced by a recent drill program. A total of six 200-metre holes intersected a Caldelaria-style mineralized system that is "open" (untested) laterally with an increase in grades and continuity at depth.

PBX is also narrowing its search for a significant find on its Sierra Pintada Property which has the potential to host a 20-to-100 million tonne iron-oxide-copper-gold deposit from two main mineralized target zones. The property consists of fourteen "grass roots" exploration claims totaling approximately 3,300 hectares. Located in the Chilean Coastal Cordilleran copper-gold belt, this property is readily accessible from the town of Vallenar, which is only 30 kilometres away. The property covers a 15-kilometer strike length that is situated along a major mineral-rich geological belt that hosts a number of historic high-grade copper-gold-silver and cobalt mining operations. This prolific mineral corridor includes the Carrizal Alto Mining District which has historically produced approximately 450,000 tonnes of copper and 1.5 million ounces of gold.

The Sierra Pintada project claims cover two strongly mineralized zones within a main structural system. They are known as the Gloria Zone and the Vina Zone. The westernmost Viņa zone consists of a 50-100 metre wide by 1,500-metre long strike length with widespread copper oxide mineralization. Small-scale historic mining of this property to a depth of 150 metres has yielded very encouraging results. The workings consist of trenches, adits and open cuts that have produced grades averaging 2.59 per cent copper, while also running as high as 5 per cent copper. The workings concentrate in several high-grade sections measuring 15-20 metres in width with a tonnage potential of about 20 million metric tonnes.

Meanwhile, mineralization in the Gloria Zone is exposed for at least 1,700 metres and averages about 50 metres in width with grades averaging 2.58 g/tonne gold and 0.36 per cent copper. PBX's management believes that the Gloria Zone's near-surface open pit potential is also about 20 to 30 million tonnes.

Elsewhere, the highly prospective Tierra De Oro project, which covers approximately 50 square kilometres, encompasses an historic gold camp and lies within the same geological setting that hosts several large open pit gold and copper-gold mines. This gold camp is reported to have produced several hundred thousand ounces of gold from pits and shafts prior to the 1930s. This gold camp covers over more than 30 linear kilometres of intersecting major gold-bearing structures within oxidized granite rock. Moreover, the property possesses many drill-ready, high-grade underground and open pit targets and has negligible overburden.

Among them is a 100 by 150-metre wide mineralized zone containing numerous gold-bearing veins. Known as the Escondida vein system, it was recently the focus of a detailed surface sampling program that was sampled along 1,200 metres of strike length. Chip samples from old workings returned values ranging from 2.76 g/tonne gold over 1.5 metres to 42.1 g/tonne gold over 1.7 metres. Other results suggest that the average grade of the system's core vein zone could range from 5.0 g/tonne gold to 6.9 g/tonne gold over a 15-metre width.

This translates into a potential resource of over 1.1 million ounces of gold for the 900-metre stretch of the vein sampled and to a depth of 150 metres. Furthermore, the Escondida vein system is "open" in both strike directions and is only one of eight similar vein systems that have been discovered on the Tierra de Oro property. All told, management believes that this project has the clear potential for a large bulk tonnage, open pit type of deposit. Notably, the property is also accessed by well-maintained gravel roads and is located only 20 kilometres from the Pan American highway. Additionally, it is also adjacent to Chile's main power grid.

PBX also owns the 1,000-hectare San Pedro property which covers several large alteration systems that have historically produced copper, gold and titanium dioxide (a valuable industrial mineral). Previous owners conducted an outcrop sampling program of the disseminated titanium oxide-bearing alteration system in the early 1990s. It produced grades varying from 1-15 per cent titanium dioxide with an average of 1.5 to 2 per cent over widths of 30 to 150 metres. The known surface area and exposed depth would also give this mineralized system similar deposit size potential to an associated copper-gold mesothermal vein system.

A 2003 exploration program is expected to involve extensive sampling of a number of old mine workings in this high-grade vein system. Historically, this prospect has produced copper grading an average of 2 per cent and in excess of 3 g/tonne gold to a depth of 80 metres. Moreover, there appears to have been no prior systematic sampling of this vein system, especially at depth. Hence, PBX intends to begin a systematic exploration program by tracing the extent of the mineralized structure's surface area, which measures at least 100 metres by 200-300 metres. It also remains "open" (untested) at depth and along strike. Management believes that a resource of 50 to 100 million tonnes may be present, though readers should take note that this is also a "grass roots" exploration project.

PBX is presided over by Gary Medford, PhD, who has several decades of experience as a geologist during which time he has specialized in exploration projects for major and junior mining companies, alike. He is joined by fellow geologist Terence Walker, M.Sc., a seasoned veteran of the mineral exploration business who has worked all over the world for such mining heavyweights as Noranda Inc. In the past seven years, he has focused exclusively on finding and exploring mineral properties in Chile.

On a technical note, PBX has 24 million shares outstanding. The company's share price is presently in a consolidation phase. Previously, it rallied on healthy volume from around Can. $0.10 at the start of the year to a high of Can. $0.86 in the following several months. This can be mainly attributed to the enthusiasm surrounding the announcement in January of the large induced polarization anomaly on the Tabaco Property and the subsequent announcement of plans to drill this compelling target. Another key endorsement came in May when the US-based Prudent Bear Fund underwrote a large financing to earn a 5.5 per cent interest in PBX (and up to 11 per cent if warrants are all exercised).

Meanwhile, PBX has ample working capital as of mid 2003 to advance its five very prospective Chilean projects. Moreover, each and every one of them has enough "home run" potential to catapult the share price to multiples of its present trading range. Consequently, SmallCapMedia believes that PBX is currently undervalued based on its current prospects. And the company's share price appears poised to easily test its former 2003 highs based on a continuation of the flow of compelling drill results.