Guayabales NI 43-101 Technical Report Dated February 8, 2011

Guayabales Project Technical Report
Department of Caldas Republic of Colombia Latitude: 5.48o North Longitude: 75.61o West
Effective Date: February 8, 2011
Dean D. Turner, C.P.G. Exploration Geotechnologies Inc. Littleton, Colorado USA
TABLE OF CONTENTS Section Pg. 3.0 SUMMARY. 1 4.0 INTRODUCTION... 5 4.1 Terms of Reference............................................. 5 4.2 Information Used..................................... 6 5.0 RELIANCE ON OTHER EXPERTS.................... 8 6.0 PROPERTY LOCATION AND DESCRIPTION... 9 6.1 Property Location.... 9 6.2 Colombian Mineral Tenure and Royalties....... 11 6.2.1 2001 Mining Law.. 12 6.2.2 2010 Law 1382.. 16 6.3 MGC Obligations..................................................... 17 6.3.1 Subject to Underlying Option Agreement.. 17 6.3.2 Subject to Mineral Assets Option Agreement.. 18 6.4 Property Boundary and Location of Mineralized Zones and Mine 19 Workings........ 6.5 Environmental Liabilities and Permits to Conduct Work...... 20 7.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, 20 INFRASTRUCTURE, AND PHYSIOGRAPHY... 8.0 PROPERTY HISTORY...... 22 8.1 Historical Colombian Gold Production. 22 8.2 History of the Guayabales Project..... 22 9.0 GEOLOGIC SETTING.. 23 9.1 Regional and District Scale Geology.. 23 9.2 Property Geology.. 28 10.0 DEPOSIT TYPES.... 31 11.0 MINERALIZATION 33 11.1 Intermediate Sulfidation Vein Mineralization.... 33 11.2 Porphyry Gold-Copper Mineralization...... 35 12.0 EXPLORATION.. 38 12.1 Property-Wide Exploration.... 39 12.1.1 MGC Soil Survey.... 39 12.1.2 MGC Reconnaissance Rock Sampling.... 43 12.2 Encanto Mine Area Exploration. 46 12.2.1 Previous Exploration Colombia Gold...... 46 12.2.2 Previous Exploration Colombia Mines...... 50 12.2.3 Comments on Combined CG and CMC Encanto Mine 55 Area Sampling Results . 12.2.4 MGC Underground Sampling Results 55 12.3 Porphyry Target Exploration. 56 12.3.1 Previous CMC Exploration in Mill and Portada Zone.... 56 12.3.2 MGC Exploration in Porphyry Target Gold Corridor........ 59
February 8, 2011
MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia
13.0 DRILLING.. 13.1 CMC Drill Program..... 13.2 MGC Drill Program..... 13.3 Discussion of Survey issues, Drill Hole Locations and Core Recovery. 14.0 SAMPLING METHOD AND APPROACH.. 14.1 Colombian Mines Corporation Sampling.. 14.2 Mercer Gold Corporation Sampling... 14.2.1 MGC Soil Sampling........ 14.2.2 MGC Rock Sampling........ 14.2.3 MGC Drill Samples........ 15.0 SAMPLE PREPARATION, ANALYSIS, AND SECURITY 15.1 CMC Samples... 15.2 CMC QA/QC Program... 15.3 CMC Drill Hole QA/QC Results . 15.4 MGC Samples... . 15.4.1 MGC Sample Preparation and Analysis...... 15.4.2 MGC Security and Chain of Custody....... 15.5 MGC Rock and Soil QA/QC Results... 15.6 MGC Drill QA/QC Results 15.7 Comments on Umpire Lab Assays 16.0 DATA VERIFICATION.... 16.1 Independent QP Samples.... 16.1.1 Duplicate Core Samples... 16.1.2 Surface Chip Channel Check Samples. 16.1.3 Underground Chip Channel Check and Field Duplicate samples..... 16.2 Independent Assay Database verification.... 16.3 Independent Data Verification by Thompson..... 17.0 ADJACENT PROPERTIES..... 17.1 Introduction........ 17.2 Marmato Gold District - History....... 17.3 Geology and Mineralization of Marmato... 17.4 Marmato Resource Estimates..... 17.5 Similarities Between Marmato Mineralization and Guayabales 17.6 Current Activities at Marmato.... 18.0 MINERAL PROCESSING AND METALLURGICAL TESTING.... 18.1 Comments on Guayabales Small Scale Mine Production and Processing. 18.2 Metallurgical Test Work at Adjacent Marmato Properties .. 18.3 Comments on the Relevance of Marmato Properties Metallurgical Studies to Guayabales 19.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATION.. 20.0 OTHER RELEVANT DATA AND INFORMATION.... 21.0 INTERPRETATION AND CONCLUSIONS....
February 8, 2011 MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia
63 63 72 75 76 76 78 78 78 79 82 82 83 86 89 89 89 91 94 94 97 97 97 100 100 101 102 102 102 104 105 106 107 108 109 109 109 110 110 110 111
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22.0 23.0 24.0 25.0 App. 1 App. 2 App. 3 App. 4 App. 5
RECOMMENDATIONS..... REFERENCES..... CERTIFICATE OF AUTHOR..... DATE AND SIGNATURE PAGE ...... Dec 21, 2009 Legal Opinion on Guayabales License LH # 0071-17. Feb 8, 2011 Legal Opinion on Guayabales License LH # 0071-17... Mining Law 1382 of Colombia.. CMC Drill Core Assays. MGC Drill Core Assays.
116 119 123 124 125 130 133 148 178
LIST OF TABLES Table 6.1 Table 6.2 Table 12.1 Table 12.2 Table 12.3 Table 12.4 Table 12.5 Table 12.6 Table 13.1 Table 13.2 Table 16.1 Table 16.2 Table 16.3 Table 16.4 Table 17.1 Table 17.2 Table 22.1 The Guayabales License Corners in Latitude & Longitude WGS-84 Payment Schedule to Comunidad Minera Guayabales MGC Guayabales 2010 Exploration Expenditures Soil Sample Statistical Summary for Precious and Base Metals Soil Sample Pearson Correlation Matrix for Select Elements Weighted Average and Maximum Gold Results for CG Samples Summary of CMCs Underground Sampling Results MGC Gold Sampling Results for Portada and Mill Zones CMC Significant Drill Intercepts MGC Significant Drill Intercepts Original CMC Drill Sample and Independent Duplicate Sample Au-Ag Results Independent Surface Sampling Duplicate Assays Independent Duplicate and Check Sample Assays Azucena Mine Independent Check Sample Assays La Cacica Mine Gold Production from the Municipality of Marmato 2004-09 Marmato Project Mineral Resources as Updated January 6, 2011 2011 Guayabales Program Budget Pg. 9 17 38 39 40 47 52 59 66 72 99 100 101 101 105 106 117
February 8, 2011
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LIST OF FIGURES Figure 4.1 Figure 6.1 Figure 6.2 Figure 9.1 Figure 9.2 Figure 9.3 Figure 10.1 Figure 12.1 Figure 12.2 Figure 12.3 Figure 12.4 Figure 12.5 Figure 12.6 Figure 12.7 Figure 12.8 Figure 12.9 Figure 12.10 Figure 12.11 Figure 12.12 Figure 12.13 Figure 12.14 Figure 12.15 Figure 12.16 Figure 13.1 Figure 13.2 Figure 13.3 Figure 13.4 Figure 13.5a Figure 13.5b Figure 13.6 Figure 13.6a Figure 13.6b Figure 15.1 Figure 15.2 Figure 15.3 Figure 15.4 Figure 15.5 Figure 15.6 Figure 15.7 Figure 15.8 Regional Property Location Map, South America Project Location Map and License Area, Colombia Location Map of Guayabales, Showing Encanto Mine Area and Porphyry Target Areas of Mineralization Guayabales Regional Geology Guayabales and Marmato District Geology Guayabales Property Geology Porphyry and Intermediate Sulfidation Epithermal Deposit Model MGC Soil Sample Locations and Gold Anomalies MGC Soil Sample Log10 Histograms for Select Elements MGC Soil Sample Geochem Anomaly Maps for Select Elements MGC Rock Sample Locations and Gold Anomalies MGC Rock Sample Anomaly Maps for Select Elements Guayabales Property Encanto Mine Area Prospects Location Map Showing CG Sample Au Results Location Map Showing CG Sample Ag Results Histograms and length-weighted statistics for CMC gold and silver underground sampling results Location Map Showing Combined CMC and CG Mine Area Au Results Location Map Showing Combined CMC and CG Mine Area Ag Results Map Showing MGC Mine Area Results (w/ CMC & CM Au) Maps of CMC Road Cut Rock Au-Ag-Cu-Pb Results Location Map of MGC Road Cut Rock Au Results MGC Road Cut Rock Au Results Portada Zone MGC Road Cut Rock Au Results Mill Zone CMC Collar and Drill Hole Trace Map With Section Line A-A CMC Drill Hole Gold Plan Map With Section Line A-A CMC Drill Hole Silver Plan Map With Section Line A-A. Section A-A Looking Northeast, Encanto Zone Grade Shell Interpretation. Perspective view looking N-NE of CMC Encanto Zone Au in Drill Holes Perspective view looking N-NE of Encanto Zone Grade Shell Model MGC Drill Hole Intercepts Plan Map With Section Lines MGC Drill Hole Section B-B MGC Drill Hole Section C-C CMC Rock Sampling CRM QC Plots for Gold and Silver. CMC Rock Sampling Blank QC Plots for Gold and Silver CMC Rock Duplicate Sampling QC Scatter Plots Gold and Silver Drill Core Sampling CRM QC Plots for Gold and Silver Drill Core Sampling Blank and Duplicate QC Plots for Gold and Silver Drill Core Sampling Duplicate QC Plots for Gold and Silver MGC Rock & Soil CRM QC Plots for Gold and Silver MGC Rock Blank QC Plots for Gold and Silver
Pg. 7 10 19 26 27 30 31 40 41 42 44 45 46 48 49 51 53 54 55 58 60 61 62 65 67 68 70 71 71 74 75 75 84 85 86 87 88 88 92 93
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Figure 15.9 Figure 15.10 Figure 15.11 Figure 15.12 Figure 16.1 Figure 16.2 Figure 17.1 Figure 17.2 Figure 21.1 Figure 21.2
MGC Rock Duplicate Sampling QC Scatter Plots Gold & Silver MGC Drill Core Sampling CRM QC Plots for Gold and Silver MGC Drill Core Sampling Blank QC Plots for Gold and Silver MGC Drill Core Sampling Duplicate QC Plots for Gold and Silver Au Core Duplicate Scatter Plots Ag Core Duplicate Scatter Plots Principal Gold Belts and Districts of Colombia Location Map of the Guayabales, Marmato and Echandia Properties, Colombia Porphyry-style Alteration with Surface Gold Samples and Geology Porphyry-style Alteration with Surface Gold Samples on Gridded Goldin-Soil LIST OF PLATES
93 95 96 96 99 99 103 104 114 115
Plate 7.1 Plate 9.1 Plate 9.2 Plate 9.3 Plate 10.1 Plate 11.1 Plate 11.2 Plate 11.3 Plate 11.4 Plate 11.5 Plate 11.6 Plate 12.1 Plate 13.1 Plate 13.2 Plate 13.3 Plate 13.4a Plate 13.4b Plate 14.1 Plate 14.2 Plate 14.3 Plate 16.1 Plate 16.2
Typical View of the Countryside in the Marmato Region Altered and Mineralized Marmato Stock Intrusive Rocks Folded, Sheared and Oxidized Continental Sediments Altered and Brecciated Marmato Stock from La Azucena Mine Marmato Stock Frog-eye Diorite Porphyry Multiphase Quartz-sulfide Breccia from the Encanto Zone, El Encanto Tunnel Hand Specimen Showing Coarse Gold/electrum Contained Within a Base Metal Vein from La Azucena Mine, Guayabales Road Cut Outcrop Showing Strong Argillic Alteration of Andesite Protolith Road Cut Outcrop of Intrusive (DQP) with Sericite (mod to stg+argillic alteration Road Cut Outcrop Showing Stockworked Intrusive with Phyllic Overprint Andesite Porphyry (AP) Medium to Coarse Grained with Chlorite+sericite alt.+argillic Overprinting NW View Towards the Mill-Portada Zone Road Cut Worker in the Encanto Zone within the Encanto Tunnel GDH07: 50.25-53.4 3.2 m @ 11 g/t Au: GDH07 @ 50.3m Brecciated Dacite Porphyry with late Carbonate Veins and Disseminated Sulfides (2-phase pyrite) within High Grade Zone T600N Rig Moving to Drill Pad T600N Rig Drilling Hole MGDH-02 Panning Stream Sediments from the Guayabales License Panning Ore from El Encanto Tunnel MGC Core Handling Procedures. MG CMC Core Storage Core Duplicate Sampling
Pg. 21 24 28 29 32 34 35 36 36 37 37 56 64 70 70 73 73 77 77 81 98 98
February 8, 2011
3.0
SUMMARY
The Guayabales property is located in the Department of Caldas, approximately 80 kilometers south of Medellin, Colombia. The Comunidad Minera Guayabales (CMG), a Colombian legal entity, is the rightful owner of the 247.85 hectare concession contract #LH0071-17. The concession contract is an exploitation license valid until the year 2038. Private Canadian company Mercer Gold entered into an Option Agreement (Underlying Option Agreement) with CMG to acquire a 100% interest in Guayabales. US public company, Mercer Gold Corporation (MGC), entered into an Option Agreement with Mercer Gold to acquire the 100% interest of Guayabales subject to the terms of an Underlying Option Agreement. At the request of Mr. Rahim Jivraj, CEO, President and Director of MGC, Dean D. Turner of Exploration Geotechnologies Inc. (the author) was requested to prepare, and subsequently update, this independent NI 43-101 compliant Technical Report for the Guayabales project. Guayabales is located in the Marmato Mining District, a region that has an extensive and productive gold mining history dating back to before the time of the Spanish Conquistadors, and continuing to the present. Security, access, infrastructure and available workforce are adequate to support the development of a mineral deposit at Guayabales due to an active and growing mining industry presence in the area. The Guayabales property is located on the eastern margin of the Western Cordillera of the Colombian Andes, and occurs within a regional scale structural zone that hosts the productive Middle Cauca Gold Belt (i.e., credited with 16 million ounces of gold resources/reserves and historic production). The porphyry gold and intermediate sulfidation gold-silver mineralization at Guayabales, and the Marmato District in general, is related to the emplacement of stocks of late Miocene age. Structure is an important control on the mineralization, particularly along northwest trending shear zones. The Guayabales property hosts a porphyry gold (copper) system and related intermediate sulfidation gold-silver mineralization within a northwest trending structural corridor. The porphyry is characterized by hydrothermal alteration of intrusive and sub-volcanic rocks comprised of argillic, intermediate argillic, and potassic overprinted by +- phyllic assemblages. Quartz vein sets cross-cut the altered rocks. The intermediate sulfidation mineralization, known as the Encanto Zone, ranges from 20 to 40 meters in width, strikes N50o-60oW, and has a sub-vertical to steep southwesterly/northeasterly dip. Encanto Zone alteration occurs as multi-phase quartz, clay-white mica, and sulfide-rich breccia. Gold and silver mineralization occurs in quartz and sulfides as native gold, auriferous pyrite, argentite, argentiferous galena, and electrum. The Comunidad de Guayabales commenced underground exploration and development activities in 1995. These small scale underground mining operations have resulted in low rates of artisanal gold-silver production that continue to the present. A formal process to legalize property ownership was initiated in 2002, and was granted to the entity Comunidad Minera Guayabales as concession contract #LH0071-17 on March 28, 2008. Two North American companies are known to have conducted previous exploration
programs on the property: a) Colombia Gold (CG) from 2005-2006, and b) Colombian Mines Corporation (CMC) from 2006-2009. MGC commenced exploration in April 2010. MGC collected 253 soil samples on a 100 by 100 meter grid over the entire Guayabales property. The results yielded distinctly high grade soil geochemistry outliers for gold (max=4.797 g/t), silver (max=26.2 g/t), and lead (max=1772 ppm). The soil sampling results delineate the epithermal mineralization of the Encanto Zone as a west-northwest trending, 1000 meter long by 100 meter wide gold anomaly. The porphyry target is outlined as a broad 900 by 500 meter semi-circular area within the property boundary of anomalous gold and copper mineralization and pathfinder geochemistry. Other, lower priority targets were defined as well. MGCs 89 reconnaissance rock samples delineated the porphyry targets Northeast Zone (16 vein samples, with 13 assaying > 0.5 g/t Au), which is a peripheral extension of the Portada Zone, as well as series of gold mineralized samples within the Portada and Mill Zones (17 samples, 6 samples >0.5 g/t Au). Elsewhere on the property, the reconnaissance rock sampling yielded anomalous gold arrayed along trend with the Encanto Zone. In addition to single point gold anomalies suggesting targets for future follow-up, a number of samples are also anomalous in other metals, including a high grade silver sample that assayed 1782 g/t. The Comunidad de Guayabales work has focused on exploiting the Encanto Zones high grade gold-silver mineralization in relatively narrow underground workings that average 1-3 meters in width, along a strike trend of approximately 250 meters. CGs and CMCs exploration programs focused in the Encanto mine area. CMC collected 512 underground rock chip channel samples that returned average grades of 1.10 g/t gold and 18.6 g/t silver. The best sampling results came from the two principal Encanto Zone mines: Cacica (42 samples averaging 4.71 g/t Au and 50.9 g/t Ag) and Encanto (64 samples averaging 3.67 g/t Au and 21.7 g/t Ag). Significant mineralization was also sampled in the underground workings of the Encanto Zone hanging and footwalls. Taken together, the CMC and CG mine area sampling delineated a west-northwest trending, gold-silver mineralized corridor centered along the Encanto Zone, with dimensions of 650 meters northwest-southeast by 350 meters northeast-southwest. The majority of this mineralized structural corridor has not been explored. MGC collected only 15 underground samples in the mining area due to heavy rains and flooding during the last six months. Both CMC and MGC have drill tested the Encanto Zone. CMCs 17 hole diamond drill program was conducted during 2008. The holes were located along 450 meters of projected Encanto Zone strike length, and had orientations that were directed perpendicular to the strike direction. The drill program yielded: a) five holes that intersected the main Encanto Zone across its entire width, b) four holes that initiated penetration of the main zone, but were lost before completion, c) three holes that intersected anomalous gold-silver mineralization along trend to the northwest and southeast, and d) intercepts from a number of drill holes in the hanging wall and footwall of the gold zone. Intercepts from the Encanto Zone include GDH07 which returned
21.85 meters (9.18m est. true thickness) averaging 2.43 g/t gold and 16.5 g/t silver, including 3.15 meters (1.32m est. true thickness) at 11.0 g/t gold and 43 g/t silver. MGCs on-going drill program, which commenced in October 2010, is currently focused on the Encanto Zone. MGC has completed 1114.6 meters of drilling in four core holes of a planned 5000 meter program from the data available at the effective date of this report. Three of the holes MGDH-01, MGDH-01A, and MGDH-02 were drilled from the same pad in the area of the La Cacica mine, and between CMC holes GDH14 and GDH15. The results are similar to those reported by CMC, and include 21.7 meters (18m est. true thickness) averaging 1.70 g/t gold and 28.43 g/t silver. MGDH-03 was drilled approximately 200 meters along strike to the northwest, and intersected the Encanto Zone, including a high grade silver intercept of 25 meters (20.73m est. true thickness) averaging 88.9 g/t silver, with a sub-interval of 7 meters (5.8m est. true thickness) averaging 292.4 g/t silver. MGCs first four holes in the Encanto Zone all successfully intersected the targeted gold-silver mineralization and generally confirmed CMCs results. From the CMC and MGC drilling, the Encanto Zone remains open along strike and to depth, with additional exploration potential within in-parallel mineralized zones in the hanging and footwall rocks. Porphyry gold mineralization at Guayabales was first recognized from CMCs work in 2007, with a substantial follow-up program conducted by MGC in 2010. CMC collected 163 surface chip channel samples along the access road leading to the underground mining area. The road generally trends perpendicular to the west-northwest structural trend projecting onto the Guayabales property from Marmato-Echandia. CMCs sampling delineated a broad, over 600 meter wide zone of fracturing, quartz veining, and consistent grades of gold mineralization averaging 0.24 g/t, and anomalous copper-lead geochemistry. MGCs work consisted of detailed (1:200 scale) road cut geologic mapping and channel sampling, and both confirmed and expanded on CMCs results. MGC collected a total of 133 samples, primarily as chip channels that totaled over 235 meters of sampling. The MGC road cut samples returned a length weighted average grade of 0.28 g/t gold (this compares favorably with CMCs 0.24 g/t Au avg). The gold grades are notably consistent, with a median of 0.23 g/t gold. Anomalous levels of copper (avg=368 ppm, max=974 ppm) and lead (avg=133 ppm, max=1871 ppm) are present with the gold mineralization. The road cut mapping and sampling, in conjunction with the geochemical patterns from the soil geochemistry, defines a 750 by 400 meter target characterized by elevated gold, copper, and other metals within an alteration pattern characteristic of a gold (copper) porphyry system. Independent data verification included sampling during the Guayabales field and core shed reviews, as well as assay database verification in the office. The independent samples confirmed that the CMC samples checked were representative and reproducible. The assay database verification yielded no errors. Finally, a compilation and review of MGCs and CMCs QA assay results established that all QC tests were passed for standard, blank, and duplicate samples. In a district scale exploration context, the Guayabales property is located immediately adjacent to, and on trend with, the mineralized structures of the Marmato mining
complex. The similarities of Guayabales and Marmato include a number of key elements, including the same: a) host rocks, b) structural trends, c) styles of mineralization, and d) types of alteration. The northwest striking Marmato mineralized trend consists of an extensive set of sub-parallel veins and veinlets over an area in excess of one kilometer along strike, and more than one kilometer wide, while the Echandia trend consists of a similar set of parallel to sub-parallel veins and veinlets explored and developed over an area approximately one kilometer along strike and more than 500 meters wide. These trends consist of higher grade gold-silver zones that occur within broad halos of lower grade disseminated stockwork and porphyry-style mineralization that have bulk-mining exploitation potential. The geological similarities and close proximity of Guayabales and the Marmato mining complex provides a compelling exploration opportunity for MGC. MGC has identified a bulk-tonnage, precious metals porphyry gold target at Guayabales. In addition, there remains significant exploration potential for higher grade gold-silver Encanto Zone mineralization that could be exploited with selective underground mining techniques. Emphasis is placed on the fact that the precious metals mineralization at Marmato is exposed over a vertical extent of more than 1,000 meters, yet exploration at Guayabales has been limited to the upper 100 to 200 meters of the system. Further, Moncayo (Moncayo and others, 2010) observed that the upper exploitation level at Marmato is at an approximate elevation of 1500 m.a.s.l., yet the southern sector of the Guayabales property is at an elevation above 1800 m.a.s.l. It follows that the mineralized system evident at Marmato may indeed be at depths +250-300 meters below the current topographic surface in the southern sector of the Guayabales property. This straightforward, but extraordinarily important observation has important exploration implications. Furthermore, the broad, 1100 meter wide, northwest trending corridor of gold-silver and gold (copper) mineralization on the Guayabales property is on trend with, and is of a similar width as, the projection of the Marmato-Echandia mineralized zones. It follows from the foregoing relationships, that the exploration target area at Guayabales not only includes the broad lateral projection of the Marmato-Echandia trends onto the property, but as well, a potentially significant projection to depth. Guayabales is a property of merit, with multiple upside target types justifying exploration follow-up. The one year Guayabales program is budgeted at US$5.8M, including land payments until the end of 2011. The 2011 work program is initially focused on further drill testing of the Encanto related mineralization. Accurate surveying of drill hole and underground working locations in the Encanto mining area will allow a 3-D model of the gold-silver mineralization to be developed. Check assaying of CMC drill results, as well as underground confirmation sampling will provide additional confidence for using these data in the Encanto modeling exercise. Further, underground geologic mapping will very likely provide important, new, and detailed information on the mineralizing controls of the system. Beyond the Encanto intermediate sulfidation related mineralization, recommended geophysical surveys (i.e., IP, magnetics, VLF-R) will provide important information on the porphyry gold system. Based upon these results, targets can be selected for drill follow-up. From the drill campaign results, it is anticipated that a NI 43101 resource estimate can be developed.
4.0 4.1
INTRODUCTION TERMS OF REFERENCE
This report is a technical review of the Guayabales property located in the Department of Caldas, approximately 80 kilometers south of Medellin, Colombia (Figure 4.1). The Comunidad Minera Guayabales CMG, a Colombian legal entity, is the rightful owner of concession contract #LH 0071-17. The concession contract is an exploitation license valid until March 27, 2038, that was registered on March 28, 2008 by INGEOMINAS in the Department of Caldas (registration #HHXB 01). Mercer Gold, a privately-held, Canadian entity registered in British Columbia, entered into an Option Agreement Underlying Option Agreement with CMG on March 4, 2010 to acquire a 100% interest in Guayabales. Uranium International Corp. (UIC), a US public company incorporated in Nevada, entered into an Option Agreement with Mercer Gold in April 2010 to acquire the 100% interest of Guayabales subject to the terms of the Underlying Option Agreement. Subsequently, as announced in a June 9, 2010 news release, UIC changed its name to Mercer Gold Corporation (MGC). At the request of Mr. Rahim Jivraj, CEO, President and Director of Mercer Gold Corporation, Dean D. Turner of Exploration Geotechnologies Inc. (the author), was initially commissioned in April 2010 to prepare a NI 43-101 compliant Technical Report for the Guayabales project. The initial report, with an effective date of May 28, 2010, was filed as required by Canadian security regulators under the then current company name of Uranium International Corporation. A subsequent report, with an effective date of June 17, 2010, was updated to reflect the company name change to Mercer Gold Corporation. In addition, typographic errors and other editorial errata were corrected. This current report, with an effective date of February 8, 2011, substantially updates the previous versions with the results from MGCs work programs conducted over an approximately eight month time period. MGCs work is ongoing as of the time of this report. The intention of this report is to in part satisfy listing requirements for MGC to become an issuer on the TSX Venture exchange as a Tier II company. At MGCs request, the scope of the report includes the following: Compile and review all exploration and technical data related to the property. Conduct a field review of the Guayabales property and a review of the drill core stored in Medellin. These reviews include the collection of independent check and duplicate samples. Update and expand on the NI 43-101 Guayabales technical report originally written by Richard Thompson on April 5, 2007 and updated in June 17, 2010 in accordance with NI 43-101 and CIM Best Practices reporting guidelines. Provide interpretations and conclusions based upon data and field reviews, an opinion on the merits of the property, and work recommendations for exploration assessment of the property over a one year period.
February 8, 2011
4.2
INFORMATION USED
This report is based on technical data and other information provided by MGC. MGC provided open access to all the records in its possession, in the opinion of the author, to enable a proper technical assessment of the Guayabales property. MGC has warranted to the author that full disclosure has been made of all material information and that, to the best of MGCs knowledge and understanding, such information is complete, accurate and true. Readers of this report must appreciate that there is an inherent risk of error in the acquisition, compilation and interpretation of mineral exploration data. Additional relevant material was acquired independently by the author from a variety of sources. The list of references at the end of this report lists the sources consulted. This material was used to expand on the information provided by MGC and, where appropriate, confirm or provide alternative assumptions to those made by MGC. In summary, the principal sources of information used for this report include: Thompsons 2007 technical report commissioned by Colombian Mines Corporation (CMC), The June 17, 2010 updated technical report commissioned by MGC (formerly UIC), Maps and abridged tables of assay results in PDF format delivered by CMC upon termination of their option agreement with Comunidad Minera Guayabales in 2009, A series of digital data files of various types representing CMCs and MGCs exploration database compilations for the Guayabales property, Public disclosures made by MGC, CMC and Medoro Resources Ltd., A Mercer Gold internal technical summary written by Keith Laskowski in February, 2010. An MGC internal technical annual report authored by C. Moncayo and others in December 2010. Various other MGC source documents, internal reports, email correspondence, and verbal communications with MGC personnel.
The author spent two days performing a field review of the Guayabales project from April 16-17, 2010, and one day, April 18, 2010, at the core shed in Medellin. An additional 3.0 weeks were initially spent in the authors Littleton, Colorado office compiling, reviewing, and interpreting exploration reports and data for the project. A further 2.5 weeks were taken to update the report with the 2010 MGC exploration program results. The true nature of any body of mineralization is never known until the last tonne of ore has been mined out, by which time exploration has long since ceased. Exploration information relies on interpretation of a relatively small statistical sample of the deposit being studied; thus a variety of interpretations may be possible from the fragmentary data
available. As a result, investors should note that the statements and diagrams in this report are based on the best information available at the time, but may not necessarily be absolutely correct. Such statements and diagrams are subject to change or refinement as on-going exploration makes new data available, or new research alters prevailing geological concepts. Within this context, appraisal of all the information mentioned above forms the basis for this report. Figure 4.1. Regional Location Map, Colombia, South America.
MERCER GOLD CORPORATION
February 8, 2011
5.0
RELIANCE ON OTHER EXPERTS
The opinions expressed in this report are based on information supplied to the author by Mercer Gold Corporation (MGC). The author has exercised all due care in reviewing and compiling the supplied information, including an extensive review of the technical data for the Guayabales property. The accuracy of the results, and conclusions from this review, are reliant on the accuracy of the supplied data. The author has relied on this information and has no reason to believe that any material facts have been withheld, or that a more detailed analysis may reveal additional material information. Technical reports, maps and data produced by MGC and past operators, are of a reliable and relevant nature, and are supported by the authors property review. The author does not accept responsibility for any errors or omissions in the supplied information, and does not accept any consequential liability arising from commercial decisions or actions resulting from them. The title to, and environmental status of, the Guayabales property was originally researched and legal opinion provided on December 21, 2009 by ARAL Consultores y Asesores and Alexander Restrepo Quiceno, Esq. (Appendix 1). An updated legal opinion was provided on February 8, 2011 by Bernardo P. Cardenas M., Esq. and Partner of Cardenas & Cardenas Abogados Ltda. (Appendix 2). From this 2011 review, the Mining Rights of the Guayabales Concession Contract LH 0071-17 are in good standing and all environmental permits have been obtained, or applied for, and have materially been complied with by the Comunidad Minera Guayabales. Further, MGCs Option Agreement, provided that payments have been duly made, is valid and enforceable under Colombian law. The author is not qualified to provide comment on legal issues, including status of land tenure or environmental compliance associated with the property referred to in this report. Assessment of these aspects has relied on information provided by MGC, which has not been independently verified by the author. This report has been prepared with the understanding that the property is, or will be, lawfully accessible for exploration, development, mining and processing, and this understanding is based on information provided by MGC. From the foregoing paragraph the author offers no opinion: a) as to the validity of the mineral title claimed and the description of the property, b) on the environmental status of the property, c) on whether the necessary permits are in place to carry out exploration and exploitation on the property, and d) on the legal status of the option agreements. This reports author hereby acknowledges the original the work of Richard Thompson, the author of the initial 2007 Guayabales technical report, Calvin Li for assistance with field and core sampling, Carlos Moncayo for his excellent technical summary regarding the MGC 2010 exploration results, James Stonehouse for his review and update on adjacent properties, exploration results, and exploration planning and budgeting, G.
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Rosero for GIS and database technical support, and Michael Sheehan for assistance on report preparation. 6.0 6.1 PROPERTY LOCATION AND DESCRIPTION PROPERTY LOCATION
The Guayabales property consists of 247.85 hectares in the Marmato Mining District of Caldas Department, Colombia. The property is located approximately 80 kilometers south of the city of Medellin (refer to Figure 4.1), and is centered at approximately 1,162,000E, 1,099,000N, Colombian National Grid, Choco projection, or in geographic coordinates at latitude 5.48oN and longitude 75.61oW (Figure 6.1). Under Colombian law, the property boundaries are determined by coordinate descriptions defined on the original application, and as awarded to the applicant by the Colombian Ministry of Mines and Energy (Table 6.1). The property boundaries were located by global positioning satellite survey. The Encanto Zone mining area, and sixteen known underground workings occur within the Guayabales property boundary (Figure 6.2). The porphyry target mineralization in the northeastern quarter of the property is interpreted to extend outside of the Guayabales property to the north. Table 6.1. The Guayabales license corners in Latitude- Longitude WGS-84. Corner Latitude Longitude 1 N 5 29' 14.3" W 75 36' 31" 2 N 5 29' 39" W 75 36' 30.9" 3 N 5 29' 39" W 75 36' 24.4" 4 N 5 29' 55.2" W 75 36' 24.4" 5 N 5 29' 55.3" W 75 36' 35.7" 6 N 5 29' 22.9" W 75 37' 29.4" 7 N 5 28' 40.5" W 75 37' 29.5" 8 N 5 28' 45.7" W 75 37' 19.8" 9 N 5 28' 50.3" W 75 37' 19.7" 10 N 5 28' 50.3" W 75 37' 11.6" In Colombia, surface rights for exploration and mining exploitation are provided by statute for a license in good standing. As described in Section 5 and Appendix 2 of this report, Guayabales Concession Contract LH 0071-17 is in good standing according to the legal opinion given by Cardenas. Furthermore, the Cardenas opinion (Appendix 2 (iv)) states (iv) Mining titles allow their holders to use the land required for exploration and mining and ancillary activities. The Colombian Mining Code (Law 685 of 2001) governs and allows the creation of mining easements as well as the expropriation of land from private owners in the areas of mineral rights, if required, since the mining activity is considered to be of public interest. Also see Section 6.2 and Appendix 3 of this report for more information on Colombian mining law. With respect to tailings storage, waste disposal, heap leach pads, and processing plants the property has available locations to support an underground mining operation, but may be constrained for a bulk tonnage open pit operation. According to Stonehouse (personal communication, 2011) there are
mechanisms under current mining law that accommodate acquisition of nearby land necessary for mining purposes. Figure 6.1 Project Location Map and License Area, Colombia.
Caramanta
Marmato
Supia
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6.2 COLOMBIAN MINERAL PROPERTY TENURE AND ROYALTIES The Comunidad Minera Guayabales CMG, a Colombian legal entity, is the rightful owner of the concession contract #LH 0071-17, an exploitation license valid until March 27, 2038, that was registered on March 28, 2008 by INGEOMINAS in the Department of Caldas (registration #HHXB 01). Mercer Gold, a privately-held, Canadian entity registered in British Colombia, entered into an Option Agreement (the Underlying Option Agreement) with CMG on March 4, 2010 to acquire a 100% interest in Guayabales. Uranium International Corp., now renamed as Mercer Gold Corporation (MGC), a US public company incorporated in Nevada, entered into an Option Agreement with Mercer Gold to acquire the 100% interest of Guayabales subject to the terms of the Underlying Option Agreement. Necessary surface agreements are in place to conduct work (Stonehouse, personal communication 2011). However, CMG represents and warrants reasonable surface access to Guayabales in the Underlying Option Agreement and the Colombian Mining Code guarantees surface access. In Colombia, all mineral rights are the property of the government of Colombia. Obtaining a mining right does not transfer ownership of the mineral estate, but creates a temporary right to explore and benefit from minerals in exchange for royalty payments so long as the mining title remains in good standing. Under Colombian mining law, foreign individuals and corporations have the same rights as Colombian individuals and corporations, and Colombian governmental regulatory bodies are specifically prohibited from requiring any additional or different requirements than would be required of a Colombian individual or corporation. Mineral property rights are governed by the Colombian Mining Code, which has been subject to various changes and amendments. The oldest version applicable is Law 20 promulgated in 1969. Law 20 was superseded by decree 2655 in 1988 (the 1988 Decree), which in turn was amended by Law 685 in 2001 (the 2001 Law). A relatively recent development is the amendment of the 2001 Law by Law 1382, enacted February 9, 2010. Under Colombian mining law, the holder of surface or subsurface minerals, whether operating on government or private property, is subject to the legal requirements established under the 1988 Decree, the 2001 Law, and the new (February 2010) Law 1382.
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6.2.1 2001 MINING LAW Authors note: This section 6.2.1 is as taken from Colombian Mines Corporations Prospectus filed March 14, 2008. The following is subject to amendments based upon Law 1382 which was passed February 9, 2010 (see Section 6.2.2). FORMS OF MINERAL TENURE Under the 2001 Law, there is a single type of mineral tenure, a Concession Contract covering exploration, construction and exploitation. The initial duration of a Concession Contract is 30 years, but may be extended for up to 30 additional years. A Concession Contract has three distinct phases: exploration, construction, and exploitation. The exploration phase lasts for the first three years of the Concession Contract, but may be extended for a term of up to two years. During this phase, the holder has the right to carry out within the given area, the studies necessary to establish the existence of the minerals. These studies should include a determination of the existence, location, geometry, and economic viability of the mineral deposit. In order to proceed to the construction phase, 30 days prior to the completion of the exploration phase, the Concession Contract holder must submit a building and works plan Plan de Trabajas y Obras (a PTO) to the mining authority for approval and concurrently submit an environmental impact study Estudio de Impacto Ambiental (an EIA) to the environmental authority. The PTO must cover the entire area granted under the Concession Contract during the stages of construction and exploitation. The PTO is based upon the results of surveys and works undertaken during the exploration stage and include: the final delimitation of the area to be exploited; cartographic information of the area, location, calculation and characterization of minerals to be exploited; a description and location of all facilities and mining infrastructure; geomorphologic, landscape and forest rehabilitation plan and a description of the escalation and duration of the expected exploitation phase; physical and chemical features of minerals to be exploited; a closure plan and an exploitation reclamation plan. The EIA provides the technical support parameters to obtain an environmental license. Depending on the commodity being produced and the level of production, this study must be submitted to the Ministry of the Environment or to environmental authority of the jurisdiction in which the mining project is located (i.e. the Regional Autonomous Corporations). The environmental license grants the necessary environmental permits including, concessions and authorizations, to make use of and profit from renewable natural resources necessary to move the project forward including resources such as water and timber. The construction and exploitation stage cannot begin until the environmental license is obtained. The construction phase lasts for three years, commencing on acceptance of the PTO, and may be extended for an additional year. During this phase, the holder has the right to
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prepare the mining area and install the services, equipment, and fixed machinery necessary to start and carry out the extraction, storage, transportation and beneficiation of the minerals. The construction, installations and mining assemblies should have the characteristics and dimensions and quality set forth in the approved PTO. In order to proceed to the construction phase, during the exploration phase, the Concession Contract holder must submit the EIA. Furthermore, the submittal of the EIA is necessary for the issuance of the environmental license required for the initiation of the construction phase. During this phase, the holder has the right to carry out within the given area, the exploitation of minerals according to the principles, rules and criteria of accepted geology and mining engineering. The Company is obligated to comply with all legal, technical, operative and environmental rules set forth in the mining code, with all buildings, facilities and mining assemblies designed and installed according to the approved PTO. The exploitation phase lasts for the remaining duration of the Concession Contract. An exploration license - Licencia de Exploracion as defined by the 1988 Decree and continued unchanged in the 2001 Law, grants the holder the exclusive right to conduct exploration activities. Under the 1988 Decree, the term of an exploration license depends on its geographical area of application. For an area up to 100 hectares, the initial term is one year, with an extension possible for one additional year; from 100 to 1000 hectares, the initial term is two years, with an extension possible for one additional year; and for an area larger than 1000 hectares, the term is five years, with no extension possible. All these terms can be accelerated if exploitation starts earlier than anticipated. Work performed during the term of an exploration license must be filed with the MME. Once the exploration term has expired, the holder must submit a Final Exploration Report and a Works and Investment Program - Programa de Trabajas e Inversiones (a PTI) to the mining authority. Exploitation licenses have a term of 10 years which can be extended under the 1988 Decree and continue under this designation until their expiry date. ENVIRONMENTAL OBLIGATIONS Exploration on a mineral tenure which exceeds prospecting, mapping and sampling, requires the submittal and approval of an Environmental Management Plan - Plan of Management Environmental (PMA) which must include: (a) (b) (c) (d)
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the work to be done (i.e., the number of drill holes, location, direction, depth, etc); the proposed points of diversion for water so appropriate water permits can be issued; the location and number of settling ponds to prevent turbidity in the streams by drilling fluids; and the location of fuel and oil storage areas, away from streams and creeks.
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The preparation and filing of the PMA is normally the responsibility of the drill contractor, and is typically approved in 15 to 30 days, up to a maximum of 90 days. There is no bond requirement for exploration PMAs, and no site reclamation is required. While PMAs do not require any authorization or environmental permits, any such work carried out in areas designated as natural reserves according to Article 34 of the Code are to be governed by those rules and restrictions. As discussed above, an EIA must be submitted before an environmental license will be issued. The EIA has to demonstrate the PTOs environmental feasibility. Without approval of this study and the issuance of the corresponding Environmental License, mining and exploitation cannot commence. Chapter 20 of the Mining Code under the 2001 Law deals with the issuance of the required environmental licenses for mining titles. Once an EIA has been submitted, the law provides that the issuance of the required environmental licenses can only be refused when: (a) the EIA does not comply with the requirement in Article 204 of the Code and specifically those foreseen in the terms of reference and/or guides, established by the competent environmental authority; the EIA has errors or omissions that cannot be corrected by the applicant and that are required components of such study; the level of prevention, mitigation, correction, compensation and substitution for the negative impacts of the mining project prescribed in the EIA, do not comply with the substantial elements established for such effects in the guidelines; or the omissions, errors or deficiencies of the EIA, and of the proposed measures referred to in the previous subsections, affect the total mining project.
(b) (c)
(d)
The 2001 Law also requires a Concession Contract holder to obtain an Environmental Mining Insurance Policy. During the exploration stage, the insured value under the policy must be 5% of the value of the planned annual exploration expenditures and during the construction phase the insured value under the policy must be 5% of the planned investment for assembly and construction under the PTO. During the exploitation phase the insured value under the policy must be 10% of the product of the estimated annual production multiplied by the mine mouth price of the minerals being produced, as fixed annually by the Colombian government. For licenses or agreements to be maintained under decree 2655 (the 1988 Decree), the holder has to obtain an insurance policy and the insured value must be 10% of the estimated production for the first two years as established by the PTI. Further, the policy must be maintained during the entire term of the license or agreement.
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SURFACE RIGHTS AND SURFACE TENURE Colombian law specifically provides that the owner of a Concession Contract, exploration license or exploitation license is entitled to use so much of the surface as is necessary to carry out the activities under the given license or contract. Under normal conditions, this requires little more than speaking with the surface owner, obtaining permission and paying a reasonable fair market price for the area actually used. Colombian law grants exclusive temporary possession of mineral deposits and provides mandatory easements to ensure efficient exploration and exploitation of legal mining titles and further provides authority to impose appropriate easements as necessary both within and external to the limits of the mining title. The holder of a mining title must agree with the surface owner or other party against which such easement is enforceable, including other mining title holders, upon the time, and appropriate remuneration for the use and occupancy. Colombian law provides that the remuneration payable to the surface owner is to be based on the reasonable fair market value of the land and is not to include any value attributable to the development of the mineral wealth, and that it should only be for so much of the surface as is actually affected, consumed or occupied by the exploration or mining activity. Should the use of the surface affect the value of areas, not subject to the easement, this loss of value will also be taken into account when fixing the remuneration payable to the land owners. Furthermore, since the mining industry is an activity of public interest, it is also possible for the concessionaire to request the competent mining authority for the expropriation of the lands necessary for mining activities. The acquisition of land through expropriation is also subject to prior indemnification to the owner(s). TAXES AND ROYALTY OBLIGATIONS In Colombia, production of gold and silver is subject to a royalty payable to the state equal to 4% of the gross value of the minerals calculated at the mine mouth for gold, subject to certain deductions and adjustments. CMG has represented and warranted in the Underlying Option Agreement on March 4, 2010 that they are obligated to pay all associated royalty payments related to their current exploitation. MGC is not liable for any of the royalty payments related to the current exploitation. The value per gram of gold and silver at mine mouth for the estimation of royalties, will be eighty per cent (80%) of the average international price for the previous month, as published in the London Metal Exchange. Under the 2001 Law, Colombian staff of a mining company, as a whole, should receive not less than seventy percent of the total payroll of qualified or of skilled personnel in upper management or senior level staff, and no less than eighty percent of the value of total payroll of the subordinates. Upon prior authorization, relief may be granted by the Ministry of Labour for a specified time to allow specialized training for Colombian personnel.
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6.2.2 2010 LAW 1382 An English language translation of Law 1382 was provided to the author and can be referenced in Appendix 3. The author is aware, as is the Colombian exploration and mining community in general, that the new law excludes mining and exploration activity from the Pramo ecosystem, which occurs above 3,200 meters elevation. The Guayabales property occurs within an elevation range of 1620 to 2240 meters elevation. In the Guayabales legal opinion provided by Cardenas (see Section 5.0 and Appendix 2 (vi)): (vi) Article 3 of Law 1382 of 2010 ("Law 1382") established that certain areas for the protection and development of renewable natural resources or the environment, to be declared and specified in accordance with current regulations, shall be excluded from mining activities. It also provided that any construction, assembly or exploitation activities with a valid mining title and environmental license, or other similar permit, in areas previously not excluded, would not be affected. To our knowledge, the area where the Mining Rights are located has not been declared as an area excluded from mining activities in accordance with Law 1382. Furthermore, since the Mining Rights were validly granted previously to the enactment of Law 1382, and have all necessary environmental permits, they may not, at this time, be excluded from mining activities.
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6.3
MGC OBLIGATIONS
6.3.1 SUBJECT TO UNDERLYING OPTION AGREEMENT Subject to the Mineral Assets Option Agreement, MGC is responsible for all obligations established in the Underlying Option Agreement with the Comunidad Minera Guayabales in order to complete the 100% acquisition of the Guayabales property. These obligations include cash payments, provision for allowing continued Limited Mining Rights, property maintenance, and quarterly reports. More specifically, these obligations include: 1. Cash Payments: MGC is responsible to make cash payments to the Comunidad Minera Guayabales, according to the following payment schedule shown in Table 6.2 (all figures U.S. dollars). The payment schedule may be accelerated without penalty: Table 6.2. Payment Schedule to Comunidad Minera Guayabales.
Payment Schedule October 14, 2009 January 14, 2010 April 14, 2010 July 14, 2010 October 14, 2010 January 14, 2011 April 14, 2011 July 14, 2011 October 14, 2011 January 14, 2012 July 14, 2012 January 14, 2013 July 14, 2013 January 14, 2014 July 14, 2014 January 14, 2015 July 14, 2015 Payment Amount $20,000 $40,000 $40,000 $55,000 $55,000 $65,000 $75,000 $75,000 $85,000 $85,000 $160,000 $160,000 $190,000 $190,000 $230,000 $230,000 $2,245,000 Status Paid Paid Paid Paid Paid Paid Pending Pending Pending Pending Pending Pending Pending Pending Pending Pending Pending Source MGC MGC MGC MGC MGC MGC MGC MGC MGC MGC MGC MGC MGC MGC MGC MGC MGC
2. Limited Mining Rights: MGC provides CMG with Limited Mining Rights, allowing the cooperative group of miners belonging to the entity to continue mining operations on the property. Operations are not to exceed 80 metric tonnes per day, providing that the mining operations are restricted to geographic areas in which mining operations are currently being conducted. MGC has the right to terminate this right to mine, by either completing the cash payment schedule described in Table 6.2 above, or by making a one time cash payment of $600,000. 3. Property Maintenance: MGC is obligated to maintain the property in good standing, free and clear of all liens, charges and encumbrances.
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4. Property Reports: MGC is obligated to provide CMG with summary operating reports on a 3 month/quarterly schedule. 6.3.2 SUBJECT TO MINERAL ASSETS OPTION AGREEMENT US listed Mercer Gold Corporation (MGC) has the following obligations, subject to its Mineral Assets Option Agreement with private Canadian company Mercer Gold Corporation (Mercer Gold). These obligations are in addition to those obligations listed in section 6.3.1 and are required in order to acquire the underlying Option interest, which includes a 100% legal, beneficial and registerable interest in the Guayabales Property. 1. Cash Payments: MGC is obligated to make a non-refundable cash payment of $200,000 to Mercer Gold upon execution of the Mineral Assets Option Agreement. This requirement has been satisfied. 2. Stock Awards: MGC is obligated to issue up to 20 million restricted common shares in the share capital of MGC to Mercer Gold in the following denominations: a. An initial 10 million shares within 2 days of the effective date of the Mineral Assets Option Agreement. This requirement has been satisfied. b. A further 10 million shares within 5 days of MGCs prior receipt of a NI 43-101 Technical Report confirming that any of the Guayabales Property contains a mineral resource with not less than 2,000,000 troy ounces of gold, in either inferred, indicated or measured categories as defined in NI 43-101. This requirement is pending. 3. Expenditures for Exploration and Development: MGC is obligated to provide or expend the expenditures within the following schedule: a. Initial $750,000 prior to December 31, 2010. This requirement has been satisfied. b. Additional $5,750,000 prior to December 31, 2011, for a cumulative total expenditure of at least $6,500,000. This is a future requirement. c. Additional $5,000,000 prior to December 31, 2012, for a cumulative total expenditure of at least $11,500,000. This is a future requirement. Termination: MGC can terminate its Mineral Assets Option Agreement at any time by providing 30 days minimum advance notice, however such notice shall require that MGC leave the property in good standing for a period of at least 180 calendar days from the termination date. Upon termination, MGC shall provide all transfer documents and provide all data and reports on the property.
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6.4 PROPERTY BOUNDARY AND LOCATION OF MINERALIZED ZONES AND MINE WORKINGS The property boundaries of the Guayabales property are identified through legal descriptions and surveyed locations. All known mineralized zones and mine workings are shown in Figure 6.2. Further detailed discussion of mineralized zones and mine workings is given in Section 12 of this report.
Figure 6.2. Location Map of Guayabales, Showing Encanto Mine Area and Porphyry Target Areas of Mineralization.
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6.5 ENVIRONMENTAL LIABILITIES AND PERMITS TO CONDUCT WORK The author is unaware of any environmental liabilities to which the Guayabales property is subject. CMG represented and warranted in the Underlying Option Agreement that there were no environmental liabilities as at March 4, 2010. From the February 8, 2011 legal opinion given by Cardenas (Section 5.0 and Appendix 2), the Guayabales mining concession LH 0071-17 is in good standing with respect to environmental requirements and exploitation and exploration activities. 7.0 ACCESSIBILITY, CLIMATE, LOCAL INFRASTRUCTURE, AND PHYSIOGRAPHY RESOURCES,
The Guayabales property is readily accessible by a combination of paved and all weather gravel roads. The project is located approximately 80 kilometers south of Medellin, Colombia, and is accessed by driving approximately 114 kilometers along the paved Pan American Highway, and then a further 25 kilometers through the mining town of Marmato to arrive at the Guayabales property (refer to Figures 4.1 and 6.1). Guayabales is situated in Colombias upper temperate climatic zone. The climate varies with elevation, and is relatively warm (greater than 24 C) below 1,000 meters in the Cauca River valley. With increasing elevations temperatures moderate to a range of 18 C to 24 C between 1,000 meters and 2,000 meters, and above 2,000 meters cool to 12 C to 18 C. Rainfall averages 1,400 mm to 2,300 mm annually, primarily during the periods from March through May, and again from September to December. The nearby town of Marmato has an average temperature of 23 C, and rainfall of 1,885 millimeters per year (Municipo de Marmato, 2004). Average annual rainfall of 2,065 millimeters is recorded at the nearby town of Supia (1,307 meter altitude) where there is a Federacon Nacional de Cafeteros de Colombia (Federacafe) weather station (Plate 7.1). The climatic conditions of the region support mining operations year-round. The Marmato region has an extensive and productive mining history, and as such, provides a skilled work force from the surrounding communities for exploration and mining labor requirements. Water, for mining purposes, is abundant from either surface or underground sources. Three high tension power lines (230 kV each) belonging to the Colombian national power grid are located between Marmato and the Cauca River valley to the east. A 132 kV substation is located at Marmato, which supplies power to the community and surrounding area, including Guayabales.
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Plate 7.1. Typical hilly topography of the Marmato region. The warm, wet equatorial climate and soils of the area are well suited to coffee production, and coffee fields are common as shown below.
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8.0 8.1
PROPERTY HISTORY HISTORICAL COLOMBIAN GOLD PRODUCTION
Colombia has produced an estimated 85 million ounces of gold since the Spanish conquest in 1514. There is no reliable estimate of the gold produced prior to, and during the Spanish conquest. In 1937, Emmons estimated production at over 49 million ounces of gold during the post conquest period from 1514 to 1937, making Colombia the largest producer in South America during that time frame. Recent production has earned Colombia a ranking which has ranged from 2nd to 5th largest gold producer in South America, and 12th to 20th largest in the world (Ministerio de Minas y Energia, Colombia, 1999-2006). In 2000, Shaw documented additional production of 30 million ounces of gold for the period 1937 to 2000. For the years 2000 to 2004, the U.S. Geological Survey documents additional production of 4.95 million ounces of gold (Bermundez, 2000; Torres, 2004). The Dow Jones Business News Service reported on August 15, 2006 that Colombia had produced 1.5 million ounces of gold in 2005. Approximately two thirds of Colombian gold production has been from placer deposits in the Department of Antioquia, which is immediately adjacent to the Department (Caldas) in which Guayabales occurs. 8.2 HISTORY OF THE GUAYABALES PROPERTY
The close proximity of Guayabales to the historic Marmato mining complex makes it likely that the property was prospected by Spanish Conquistadors, and perhaps earlier by Colombian indigenous people. There are, however, no records of these activities. Nevertheless, historic exploration and production from the Guayabales property is evidenced by concrete footings of a mill in the canyon below the present site of the Guayabales operations. There are no production records available from this operation, but total production is estimated to not exceed 20,000 ounces of gold and 200,000 ounces of silver. The Comunidad de Guayabales has conducted underground exploration and development activities since 1995. They have developed and prospected a total of sixteen underground workings, with low rates of production by artisanal miners. The Comunidad began the formal process to legalize ownership on October 10, 2002, and were granted ownership on March 28, 2008. The legalized entity has been recorded under the name of Comunidad Minera Guayabales. Colombia Gold and Colombian Mines Corporation conducted geological mapping, geochemical sampling, and limited drilling on the property, starting in 2005. CMC entered into agreement with the Comunidad de Guayabales on November 26, 2006, for 100% of the rights to explore the concession area. CMC terminated their Guayabales option agreement in February, 2009. See Sections 12 and 13 of this report for a detailed review of this previous work.
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Mercer Gold, a privately-held, Canadian entity registered in British Colombia, entered into an Option Agreement with Comunidad Minera Guayabales on March 4, 2010 to acquire a 100% interest in the Guayabales property. Mercer Gold Corporation (previously named Uranium International Corp.), a US public company incorporated in Nevada, entered into an Option Agreement with Mercer Gold to acquire its 100% interest in Guayabales subject to the terms of the Underlying Option Agreement on April 13, 2010, which was later amended on December 30, 2010. Mercer Gold Corporation has subsequently conducted an exploration program consisting of geological mapping, geochemical sampling, and core drilling to follow-up and expand upon previous exploration results. A detailed review of MGCs work is given in Sections 12 and 13 of this report. 9.0 GEOLOGICAL SETTING
9.1 REGIONAL AND DISTRICT SCALE GEOLOGY (refer to Figures 9.1 and 9.2) The Guayabales property is located on the eastern margin of the Western Cordillera of the Colombian Andes. The Cauca River has eroded a deep river valley along the Cauca Romeral fault zone. This deep intermontane river valley separates the Western Cordillera from the Central Cordillera of the Andes. The Cauca-Romeral fault zone forms a boundary between dominantly Paleozoic-age continental basement (low grade metasediments, medium to high grade amphibolite schists, amphibolites and gneisses) of the Central Cordillera and Cretaceous-age oceanic basement (gabbro, serpentinite, basalt, dolerite, chert, greywacke, black shale) of the Western Cordillera. The zone may have originated as a subduction zone separating the two terranes (Hall, 1973). Hall suggests that the CaucaRomeral fault zone is now a regional scale wrench fault system, with perhaps more than 50 kilometers of lateral displacement, similar to wrench faults described by Feininger (1973) in eastern Antioquia Department. Both rock sequences divided by the CaucaRomeral zone are intruded by Upper Cretaceous granodiorite and quartz monzonite. In turn, these rocks are partially covered by continental sediments of the Miocene age Amag Formation and the Neogene age Combia Formation, which consists of calc-alkaline volcanic andesite flows and pyroclastic rocks. The gold mineralization at Guayabales and the Marmato District is related to the emplacement of porphyry stocks of late Miocene age that intrude the older rock sequences in the region. The Marmato Stock is an intermediate composition, multi-phase intrusive complex that ranges from andesite-diorite to dacite-granodiorite (quartz diorite) in composition (Plate 9.1). The Marmato porphyries intrude Amag Formation sedimentary rocks in the Cauca Valley and Combia Formation volcanic rocks. The basement is the Cretaceous ophiolite complex and Paleozoic metamorphic rocks. The distribution of the individual intrusive phases has not been mapped in detail. All phases of the stock are weakly to strongly porphyritic, and all appear to be altered and mineralized. Post-mineral dikes ranging from diabase to rhyolite are relatively minor volumetrically and typically unmineralized,
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but may show some local alteration where they cut mineralized and altered porphyry in the district. These dikes have been interpreted to represent sub-volcanic basal intrusives formed during the waning stages of deposition of the Upper Combia Formation volcaniclastics (Pinzon and Tassinari, 2003, Gonzalez, 1996; Perez, 1980; Hall, 1973).
Plate 9.1. Altered and mineralized Marmato Stock intrusive rocks weathered to saprolite and exposed in a road cut northeast of the main Guayabales mining area. The rocks are primarily dioritic in composition, strongly fractured, cross cut by veins and sheeted vein sets, and consistently mineralized with low levels of gold (i.e., +100-200 ppb Au).
The Marmato stock has been radiometrically dated by potassium-argon (K-Ar), yielding ages of 6.3 0.7 Ma and 7.1 0.2 Ma (Late Miocene) for porphyritic dacite and porphyritic andesite respectively (Sillitoe et al., 1982; Rossetti & Colombo, 1999). More recent dating for the Marmato Complex by argon-argon (Ar-Ar) on biotite gives dates of 6.7 0.06 Ma, and 5.6 0.6 Ma for sericitized plagioclase by K-Ar (Pinzn &Tassinari, 2003). The latter date is interpreted as the time of maximum mineralization and may be slightly younger than the age of intrusion.
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Pinzn & Tassinari (2003) give the following summary of the geological and metallogenic evolution of the Marmato District, based on recent age-date and isotope studies: 1. 33 Ma to 25 Ma: Magmatism in the Piedrancha-Farallones Arc. 2. 22 Ma: Development of a back-arc basin related to the Piedrancha-Farallones Arc and start of deposition of continental sediments (Amag Formation). 3. 12 Ma: Collision of the Panam-Choc Arc against the South American Continent. Reactivation of the Cauca-Romeral Shear Zone (CRSZ) and development of pull-apart basins. 4. 11 Ma: Calc-alkaline and tholeiitic magmatism (Combia Formation), related to pull-apart basins. 5. 6.3 Ma: Intrusion of Marmato Stock associated with Combia Formation magmatism. Start of hydrothermal alteration related to CRSZ reactivation and fracturing of Marmato Stock. 6. 5.6 Ma: Last reactivation of CRSZ, last magmatic activities of Marmato Stock, and main mineralization episode. 7. 5.0 Ma: End of Combia Formation magmatic activity. Mineralization within the Marmato District occurs dominantly along northwest trending shears, with lesser mineralization found associated with north-south and east-west trending structures. Two distinct sets of northwest trending mineralized shears are evident in the greater Marmato area termed the Zona Alta and Zona Baja. Mineralization on the Guayabales Property occurs approximately on strike one kilometer to the west-northwest of these productive gold zones. The author of this report has been unable to verify the information concerning the Marmato District, and the foregoing information is not necessarily indicative of the mineralization on the Guayabales property.
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Figure 9.1. Guayabales Regional Geology.
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Figure 9.2. Guayabales and Marmato District Geology.
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9.2 PROPERTY GEOLOGY (refer to Figure 9.3) A key aspect of the geology of Guayabales is the sheared and mineralized intrusive contact zone between the Tertiary age Marmato Stock and older Paleozoic age marine sediments present in the vicinity of property (Plates 9.2 and 9.3). The main shear, the Encanto Zone corridor, trends roughly N60oW, is sub-vertical to steeply southwest/northwest dipping, and has widths ranging from 20 to 40 meters. Existing mine workings demonstrate approximately 500 meters of strike, and geomorphic expressions indicate approximately 1.3 kilometers of cumulative strike extent. Lesser shears and other structures are evident throughout the property and range from N 60o W to eastwest in strike with sub-vertical dips. A strong rectilinear drainage pattern is present on much of the property which suggests drainages are controlled by structures parallel to the Marmato and Echandia structural trends, offset by cross-cutting faults. Plate 9.2. Folded, sheared and oxidized continental sediments of Paleozoic age, as exposed in the Gloria #1 Tunnel, Guayabales. Note the deformed nature of quartzveining indicating post-alteration tectonism.
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Plate 9.3. Altered and brecciated Marmato Stock with siliceous matrix, La Azucena Mine, Guayabales Property.
MGC carried out a property scale mapping program in 2010, resulting in a 1:5000 scale geologic compilation (Figure 9.3). As Guayabales is over 95% covered with soil and vegetation, most of the mapping is necessarily generalized and interpretive. Notwithstanding, MGCs mapping has produced what is by far the best understanding of the property geology to date. As described by Moncayo and others (2010) the five primary units mapped are, from oldest to youngest 1) metamorphic rocks (roof pendants) represented by chlorite/quartz sericite and graphitic schists, 2) coarse grained granodiorite, 3) fine to medium, and coarse grained biotite/hornblende andesites, 4) medium to coarse grained dacitc quartz porphyries/andesite volcanic flows (Combia Fm.), 5) late stage, post-mineral dikes with compositions ranging from andesite to rhyolite.
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Figure 9.3. Guayabales Property Geology.
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10.0
DEPOSIT TYPES
The mineralization at Guayabales is typical of an intermediate sulfidation type gold-silver metal deposit associated with a porphyry system (Figure 10.1, Plate 10.1). This type of mineralization is similar to that found at Marmato Mountain in La Zona Alta and La Zona Baja (see Section 17 of this report, Adjacent Properties). The intermediate sulfidation-type epithermal mineralization is superimposed on, and paragenetically later than the porphyry-style mineralization (Lewis, 2006). Targets related to ther precursor porphyry-style mineralization may have the potential to develop significant gold-copper molybdenum mineralization. These types of deposits often have high exploration potential for surface and underground resources amenable to bulk mining techniques. Figure 10.1. Porphyry and Intermediate Sulfidation Epithermal Deposit Model (after Hedenquist, et al., 2004).
Most of the precious metal mineralization in the Marmato District is associated with base metal sulfides or native precious metal species. Oxide mineralization may occur in the weathering zone above the sulfides but is limited, as is generally typical in the development of supergene oxidation in the Western Cordillera of Colombia. MGC is primarily targeting the bulk tonnage potential of the Guayabales property. However existing underground development and resulting production at Guayabales demonstrates significant target potential for high grade mineralization amenable to selective mining techniques. Narrow, unoxidized, vein-type portions of the main Encanto Zone, as well as subparallel zones, are actively being mined by the CMG.
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Plate 10.1. Marmato Stock frog-eye porphyry: diorite porphyry with coarse plagioclase, hornblende and biotite with minor pyroxene phenocrysts in a microlitic matrix.
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11.0
MINERALIZATION
The Guayabales property covers an extensive zone of mineralization and alteration at the projected northwest extension of the Marmato and Echandia structural trends (see Section 17 for discussion). Guayabales hosts a gold-silver mineralized corridor of shearing and veining (Encanto Zone) and high-level intrusions associated with porphyry gold (copper) mineralization (La Portada and Mill Zones). 11.1 INTERMEDIATE SULFIDATION VEIN MINERALIZATION
Multiple mineralized shears are exposed in the accessible mine workings and in road cuts on the Guayabales property. The main productive zone, known as the Encanto Zone, is exposed and developed in the underground workings. The Encanto structural corridor ranges from 20 to 40 meters in width, strikes N50o to N60oW and has a sub-vertical dip. This mineralized zone is sympathetic to the major mineralized fault zones along strike to the southeast at Marmato and Echandia. Other mineralized structures and shears range from a few millimeters to several meters in width, are sub-vertical, and strike from east west to N40oW. The Encanto Zone consists of multi-phase quartz, clay-white mica, and sulfide-rich breccia (Plate 11.1). Gold and silver mineralization occurs in quartz and sulfides as native gold, auriferous pyrite, argentite, argentiferous galena, and electrum (Plate 11.2). At Marmato and Guayabales the precious metal-bearing minerals are controlled by late fractures that crosscut earlier pyrite, chalcopyrite and sphalerite veins. The paragenetic sequence indicates an early base-metal mesothermal assemblage formed at temperatures greater than 250 degrees centigrade, associated with quartz-sericite-pyrite alteration, crosscut by later, relatively high-temperature epithermal, precious-metal bearing assemblages associated with quartz-clay-white mica (Lewis, 2006). Limited mineralogic work has been done at Guayabales, but mineralization is expected to be similar to that found on the adjacent Marmato property, and multi-element geochem from Guayabales is compatible with better identified mineral suites on adjacent properties. A 3-phase paragenetic sequence for the intermediate sulfidation veins has been established for Marmato and may also be a good model for Guayabales (Cuellar and Mora, 1985; Rubiano, 1986): 1) High-temperature pyrite phase accompanied by Fe-rich sphalerite, chalcopyrite and minor bornite, arsenopyrite and pyrrhotite. 2) Relatively low-temperature phase; chalcopyrite, pyrite and sphalerite of phase 1) are replaced by iron-poor sphalerite (Fe exsolved at lower temperatures) and argentiferous galena; other lower temperature species deposited largely in secondary fractures include marcasite, acanthite, polybasite, freibergite, gold and electrum. 3) Supergene phase accompanied primarily by deposition of covellite, chalcocite and malachite.
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The multiple late fracture-controlled nature of the precious metal bearing species observed on adjacent properties probably accounts for the good recovery levels seen at Guayabales. Clay content is higher in the upper exposed parts of the Encanto Zone with quartz, semi massive sulfides and chlorite rapidly becoming prominent with depth. This change may well be due to weathering of sulfides and chlorite to kaolinite during supergene phase 3) (Tewalt and Carrington, 2006).
Plate 11.1. Multiphase quartz-sulfide breccia from the Encanto Zone, El Encanto drift, Guayabales.
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Plate 11.2. Early Pyrite veinlets oriented vertically in this picture are cut by a transverse veinlet containing pyrite, sphalerite, and galena in this sample from the Azucena Mine at Guayabales. The base metal veinlet contains leaves of coarse gold/electrum just above and to the left of the coin. Both sets of veinlets show supergene chalcocite and covellite coatings over hypogene sulfides.
11.2 PORPHYRY GOLD (COPPER) MINERALIZATION (after Moncayo and others, 2010) MGCs 2010 geologic mapping and sampling programs have yielded new and definitive information regarding the recently recognized porphyry system at Guayabales. In particular, road cut mapping at 1:200 scale has identified alteration assemblages typical of porphyry systems (see Plates 11.3-11.6). The presence of a porphyry system is supported by the occurrence of polyphasal intrusive and sub-volcanic rocks with hydrothermal alteration assemblages comprised of clay+leached pyritequartz-mgt (argillic), chlorite+quartz+leached pyrite+sericite-mgt+clay (intermediate argillic), and localized FeOx/quartz stockwork+magnetite diss./veinlets+ hematite (after mgt.)+sericite (potassic overprinted by +- phyllic). The mapped alteration is interpreted to be transitional from a potassic core to peripheral quartz-sericite-pyrite alteration (phyllic). In addition, it is important to note that some outcrops of andesites /quartz diorites have an epidote+pyrite(>5%)+chlorite assemblage which could be indicative of a propylitic/pyritic halo around the porphyry gold (copper) system.
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Plate 11.3. Road cut outcrop showing strong argillic alteration of andesite protolith, with clays+kaolinite +isolated structure/veins filled by rare quartz and abundant FeOx.
Plate 11.4. Road cut outcrop of intrusive (DQP) with sericite (mod to stg+argillic alteration overprint showing veins with +-quartz+pyrite(leached)+sericite/kaolinite halos.
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Plate 11.5. Road cut outcrop showing stockworked intrusive with phyllic overprint.
Plate 11.6. Andesite porphyry (AP) med to coarse grained with chlorite+sericite alt.+argillic overprinting. Cross cut by FeOx/quartz sheeted veins ranging between 1mm to 5 cm and with a density >10/m (Mill Zone).
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12.0
EXPLORATION
Prior to Mercer Gold Corporations (MGC) 2010 work, exploration on the Guayabales property primarily focused on the Encanto Zone underground mine workings developed by the Comunidad Minera Guayabales (CMG). Besides CMG, the earliest documented exploration on the property was conducted by Colombia Gold (CG) in 2005 and 2006 on 10 of the 11 primary underground workings they had identified at the time (there are now five additional, but minor workings, bringing the total to 16). Subsequently, Colombian Mines Corporation (CMC) initiated exploration programs in late 2006 that consisted of two stages: 1) evaluating underground mineralization at the Azucena, Guayabales and Ensueno underground workings by channel sampling and mapping portions of the drifts and crosscuts to which CMC had access, and 2) follow-up channel and select chip-sampling combined with reconnaissance mapping of road cut surface exposures northeast of the Encanto Zone mining area. From 2007 to 2008 CMC continued its mapping and sampling programs, with these efforts culminating in the 17 hole drill program discussed in Section 13. CMC dropped the property in February 2009. Mercer Gold Corporation (MGC) commenced exploration activities in April-May 2010, with programs that consisted of: 1) property-wide 1:5000 scale geological mapping accompanied by reconnaissance level rock sampling, 2) a systematic property-wide soil sampling campaign, 3) detailed (1:200 scale) road cut geological mapping and chip channel sampling, and 4) a core drilling campaign in the Encanto mine area that is ongoing at the time of this report (see Section 13). MGCs work over a period of approximately nine months has established the first property-wide context for the wellknown intermediate sulfidation gold-silver mineralization related to the Encanto Zone, as well as porphyry related mineralization suggested by CMCs earlier work. Table 12.1 summarizes MGCs direct project related work expenditures through 2010. Table 12.1. MGC Guayabales 2010 Exploration Expenditures. Expense type Description
Geologic mapping etc. Consultants Drilling Drill Analysis Soils Geochem Rock Geochem Geophysics Camp costs Transport Field labor Environmental Permitting CSR Professional technical staff Geologic field investigations & reports Ongoing DDH program DDH assays Property-wide survey Property-wide, road cut, etc. surveys Down payment for 2011 survey Project field living Field travel, assay shipments, etc. Local labor for pad building, maint etc. Required reclamation etc. Water use permit Community supplies, education, etc.
USD
$158,000.00 $21,678.00 $349,445.27 $9,647.60 $26,802.12 $10,295.49 $7,000.00 $12,768.72 $15,793.61 $49,014.09 $17,800.00 $1,000.00 $9,800.00 $689,044.90
Total Approved Expenditures

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Note that including G&A and other items, 2010 MGC spending on the Guayabales project met the $750,000 Mineral Assets Option Agreement work commitment discussed in Section 6.3.2. This Section 12 summarizes the results from MGCs 2010 work, as well as CGs and CMCs previous programs. Refer to Figure 6.2 for a map outlining areas discussed for the various work programs. 12.1 PROPERTY-WIDE EXPLORATION 12.1.1 MGC SOIL SURVEY The Guayabales project is nearly 95% covered by soil and vegetation, and as a result, MGCs soil sampling program was necessary to identify broad geochemical trends and anomalies of precious and base metals, as well as pathfinder element distributions on a comprehensive, property-wide scale. The sampling was on a 100 by 100 meter grid (N-S by E-W), with samples taken from the B soil horizon at depths ranging from 0.6 to 1.8 meters. See section 14.2.1 for a discussion on soil sample orientation studies and methodologies. A total of 253 soil grid locations were sampled over the property. (Figure 12.1). The univariate statistical summary given in Table 12.2 highlights anomalous levels of base and precious metals mineralization. As well, there are distinctly high grade soil geochemistry outliers for gold, silver, and lead. Multivariate analysis yielded two distinct suites of geochemical associations as given by the Pearson correlation matrix (Table 12.3). The strongest positive correlations are grouped as Au-Ag-Pb and Cu-Mo-K, which corresponds to metal associations indicative of intermediate sulfidation and porphyry styles of mineralization, respectively. The Log10 histograms in Figure 12.2 display nested, polymodal distributions reflecting the distinct mineralizing environments. Gold, copper and potassium display what appears to be two nested Log symmetric populations. Table 12.2. Soil Sample Statistical Summary for Precious and Base Metals.
Number Min Max Median Mean StdDev CV AU PPM 253 0.001 4.797 0.037 0.109 0.344 3.165 AG PPM 253 0.20 26.20 0.30 0.97 2.49 2.55 CU PPM 253 0.50 619.00 36.30 76.90 100.03 1.30 MO PPM 253 1.00 44.00 2.00 4.69 6.72 1.43 PB PPM 253 2.00 1772.00 14.00 50.29 159.22 3.17 ZN PPM 253 6.10 221.30 33.20 43.62 34.85 0.80
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Table 12.3. Soil Sample Pearson Correlation Matrix for Select Elements.
AUPPM AGPPM ASPPM CUPPM KPCT MOPPM PBPPM SBPPM ZNPPM AU PPM 1.00 0.87 0.23 0.27 0.18 0.22 0.58 0.13 0.26 AG PPM 1.00 0.29 0.33 0.22 0.27 0.77 0.23 0.39 AS PPM CU PPM K PCT MO PPM PB PPM SB PPM ZN PPM
1.00 0.19 0.34 0.09 0.32 0.19 0.31
1.00 0.48 0.66 0.37 0.37 0.29
1.00 0.53 0.30 0.31 0.32
1.00 0.32 0.35 0.07
1.00 0.22 0.39
1.00 0.18
1.00
Figure 12.1. MGC Soil Sample Locations and Gold Anomalies.
Porphyry Target
SW Target (also see Arsenic Map)
The soil sampling results delineate the well-known epithermal mineralization of the Encanto Zone as a west-northwest trending, 1000 meter long by 100 meter wide anomaly that projects from the propertys southern boundary towards the Marmato mining complex (refer to Figures 12.1 and 12.3). A northwest trending arsenic anomaly
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reinforces this pattern. This Encanto Zone parallel geochemical trend occurs at, and is partially coincident with, the southwestern margin of a broad 900 by 500 meter semicircular area within the property boundary of porphyry alteration (see Section 11.2 for discussion). This region of porphyry alteration is strongly anomalous in gold (max=4.797 ppm), silver (max = 26.2 ppm), copper (max=619 ppm; 8 samples > 200 ppm), and lead (max=1772 ppm; 6 samples > 200 ppm), and weakly anomalous in molybdenum. An additional epithermal target has been interpreted by MGC geologists in the southwest portion of the property based on low level gold (0.247 ppm) and high arsenic values (i.e., up to 656 ppm) over an area of 400 by 250 meters. The rest of the southwestern sector of the property consistently lacks anomalous soil geochemistry in a region interpreted as a structural block without exposures of mineralized rocks. Figure 12.2. MGC Soil Sample Log10 Histograms for Select Elements.
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Figure 12.3. MGC Soil Sample Geochem Anomaly Maps for Select Elements. GOLD SILVER
COPPER
MOLYBDENUM
ARSENIC
LEAD
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12.1.2 MGC RECONNAISSANCE ROCK SAMPLING MGC conducted reconnaissance rock sampling during the 1:5000 scale geologic mapping program (Figure 12.4). A total of 89 samples were collected, with the sample types comprised of chip channel (typical length of 1 m), grab, and select. Two groups of early stage road cut samples were taken in the northeast corner of the property (see Section 12.3 for detailed discussion of road cut sampling exploration program). These samples occur within the porphyry alteration zone delineated from mapping and soil geochemistry. The first group, in what MGC geologists termed the Northeast Zone, consisted of 16 samples taken in outcropping vein structures ranging from 5 to 60 centimeters wide, and generally striking northwest and parallel to the regional trends in the Marmato district, and coincident with the contact between the dacite porphyry and andesites. Thirteen samples assayed greater than 0.5 g/t gold, with the highest channel sample value of 3.12 g/t across 1 meter. The Northeast Zone samples are also anomalous in lead, and include a high grade silver sample that assayed 322 g/t (Figure 12.5). The second group consisted of 17 samples, and occurs in the porphyry target area (i.e., Portada and Mills Zones) subsequently mapped and channel sampled as discussed in Section 12.3.2. The zone is defined by an area of argillic and silica alteration with mineralized veins that range in width up to 3.0 meters, and generally strike west-northwest. Six samples assayed greater than 0.5 g/t gold, with a maximum of 1.52 g/t gold from a 1.0 meter channel sample. The porphyry zone rock samples are also consistently anomalous in copper and molybdenum (refer to Figure 12.5). Elsewhere on the Guayabales property, the reconnaissance rock sampling yielded single sample gold anomalies arrayed along trend with the Encanto Zone. This Encanto coincident trend is also enriched in arsenic and zinc, and cuts along the geologic contact between the schists and dacite porphyry. Single point gold anomalies southwest of the Encanto Zone highlight potential exploration targets for future follow-up; a number of these samples are also anomalous in the other metals, including a high grade silver sample that assayed 1782 g/t.
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Figure 12.4. MGC Rock Sample Locations and Gold Anomalies.
NE Zone Porphyry Samples Portada & Mill Zones
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Figure 12.5. MGC Rock Sample Anomaly Maps for Select Elements. GOLD SILVER
COPPER
MOLYBDENUM
LEAD
ZINC
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12.2 ENCANTO MINE AREA EXPLORATION The Encanto mine area has been the focus of previous exploration programs first conducted by Colombia Gold, and subsequently Colombian Mines Corporation (Figure 12.6). MGCs surface and underground sampling work around Encanto has been limited to date. Figure 12.6. Guayabales Property Encanto Mine Area Prospects.
12.2.1 PREVIOUS EXPLORATION COLOMBIA GOLD CG performed rock chip channel sampling and underground mapping in 2005 and 2006 in 10 underground workings. In addition, they performed limited surface sampling. CGs underground sampling focused on the underground mines of the Encanto Zone. Their work delineated significant gold mineralization, with associated silver, in the La Cacica, Azucena, Guayabales, and Encanto mines (Table 12.4; Figures 12.7 and 12.8). In addition, Encanto Zone hanging wall sampling at the La Gloria 1 mine returned encouraging results. CGs footwall underground sampling returned generally lower grade gold and silver assays. From CGs work, the Encanto Zone clearly stands out as the primary gold-silver target zone, with secondary targets hosted by subparallel structural zones in the Encanto hanging wall.
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Table 12.4. Weighted Average and Maximum Gold Results for CG Samples. CG Samples Samples Tot. Meters Avg. Avg Au Max Au g/t Meters** g/t*** Azucena Mine 37 32.44 0.877 0.250 2.79 Chiquita Mine 1 0.35 0.35 0.14 0.14 Encanto Mine 70 100.63 1.44 3.32 50.35 Ensueno Mine*1 29 19.06 0.657 0.390 1.688 Fortuna Mine 9 5.7 0.633 0.620 1.85 Gloria I Mine 27 17.55 0.65 2.76 21.53 Gloria II Mine*2 17 25.31 1.49 0.257 1.53 Guayabales Mine*3 17 17.81 1.05 4.54 12.70 La Cacica Mine*4 26 23.34 0.897 4.6 19.0 Clavada Mine No Samples Martina Mine 3 2.05 0.683 1.02 1.35 Surface 27 41.3 1.652 0.350 6.40 Total 263 285.54 1.466 2.146** 50.35
*1, 2, 4 have 2 grab samples not included with the sample number. *3 has 4 grab samples not associated with the sample number. *5 has no coordinate data for two samples (275744, 275745). ** Samples generally taken across along the rib of a working. *** This value computed by taking the Au grade times the meters divided by the total meters for all the locations.
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Figure 12.7.
Location Map Showing CG Sample Au Results.
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Figure 12.8. Location Map Showing CG Sample Ag Results.
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12.2.2 PREVIOUS EXPLORATION - COLOMBIAN MINES CMC followed-up on CGs exploration results with a focus on the Encanto Zone and associated mines and underground workings in the surrounding 500 meter by 500 meter area. Underground mining has exploited gold mineralization in four separate mines within the Encanto Zone. Mining has also extracted gold mineralization from the hanging wall and the footwall of this southwest dipping zone. CMCs work included mine mapping, sampling, and surveying for the 16 individual mines on the Guayabales property. Global length-weighted summary statistics for the CMC underground rock chip channel sampling are given in Figure 12.9. The minimum sample length was 0.20 meters, the maximum 3.00 meters, and the average length was 1.51 meters. The gold and silver histograms display nested polymodal distributions, representing higher grade populations in the Encanto structural zone, and lower grade populations in the zones hanging and footwalls. The four primary mines of the Encanto Zone, the Azucena, Cacica, Encanto, and Guayabales tunnels, were the focus of CMCs underground sampling program (Table 12.5 and Figures 12.10 and 12.11). The Cacica and Encanto mines drift along approximately 230 meters of strike length in the Encanto Zone, and CMCs sampling in these two mines returned the best overall results, averaging 4.71 g/t and 3.67 g/t gold, respectively. The Azucena, Cacica, Encanto, and Guayabales mines identify a distinctive northwest-southeast striking, high grade gold zone. The hanging and footwalls of the Encanto Zone have variable gold-silver sampling results. The footwall mines tend to be lower grade, with the best results reported from limited sampling in the Aguato (avg. 1.44 g/t Au, 39.6 g/t Ag) and Martina mines (avg. 1.42 g/t Au, 50.0 g/t Ag). The hanging wall sampling returned generally low grade to geochemically anomalous gold-silver assays. However, the Gloria 1 tunnel does have a series of high grade samples (max 8.77 g/t Au, 114 g/t Ag) in a east-northeast oriented cross cut. Approximately 425 meters to the north-northwest of the Encanto Zone mines, the Mamey mine returned anomalous to high grade gold and silver (max 4.92 g/t Au, 164 g/t Ag). CMC also collected 212 surface chip channel samples in the underground mining area and surrounding vicinity. The samples had an average length of 1.87 meters, and returned length weighted averages of 0.23 g/t gold and 9.6 g/t silver. These low grade values proved to be of limited value in interpreting mineralized trends identified from the underground workings, although there are cases of anomalous, or individual high grade gold-silver surface samples that warrant follow up.
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Figure 12.9. Histograms and length-weighted statistics for CMC gold and silver underground sampling results.
AU_PPM AG_PPM -------------------------+----------------N of Cases 512 512 Minimum 0.008 0.050 Maximum 27.050 322.000 Median 0.220 9.100 Arithmetic Mean 1.103 18.600 Standard Deviation 3.560 41.915 Coefficient of Variation 3.228 2.254
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Table 12.5. Summary of CMCs Underground Sampling Results.

Mine Azucena Cacica Encanto Guayabales Clavada Colorados El Aguato Ensueno Chiquita Fortuna La Martina La Tigre Mamey La Gloria 1 La Gloria 2 Quinguana Elev (m) 1805 1870 1850 1825 1840 1850 1845 1825 1875 1905 1825 1790 1920 1865 1870 1865 # Samps 155 42 64 33 2 5 11 2 2 7 17 23 48 13 27 Avg Au g/t 0.54 4.71 3.67 0.59 Avg Ag g/t 11.8 50.9 41.4 10.6 Max Au g/t 27.05 22.71 21.74 6.23 Max Ag g/t 261.1 250.0 322.0 130.7 63.1 145.0 40.6 1.4 16.4 261.0 86.3 164.0 114.0 85.6 144.3 Comments Encanto Zone, NW cross cutting zone in hanging wall, many samples >1g/T, 1 + 5g/T, 120 m length. Encanto Zone, 150 meters in zone,13 continuous samples +5g/T, not strike length constrained, 150 m length. Encanto Zone, 16 samples +5g/T, 140 meters in zone, open not strike-length constrained, 140 m length. Encanto Zone, 6 samples in zone, two (2) +5g/T, little sampling, 120 m length. 80 m north of the Encanto, FW. 60 m north of the Encanto, FW. 125 m north of the Encanto, FW, 5 samples, all anomalous, 1 +5g/t. 200 m north of the Encanto, 1 sample + 1g/T. 150 NW of the Encanto Zone, FW, no significant values. 250 meters NW of Encanto trend, hanging wall (HW), no Significant geology/alteration or values. 125 m N of the Encanto Zone, FW, anomalous values with 1 + 5g/T. 300 m N of the Encanto Zone, FW, no significant values. 400 m N of the Encanto Zone, andesite, anomalous values. 100 m S of the Encanto Zone, HW, numerous anomalous values, 1 +5g/T. 100 m S of the Encanto Zone, HW, anomalous, with 2 samples + 1g/T. 60 m S of the Encanto Zone, HW, some anomalous values.
6.56 38.2 12.34 no assay data 1.44 0.43 0.04 0.14 1.42 0.09 0.41 0.69 0.50 0.47 39.6 6.7 1.15 14.35 50.0 16.2 12.2 18.8 21.4 13.2 6.54 1.18 0.04 0.20 7.36 0.29 4.92 8.77 2.32 13.77
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Figure 12.10.
Location Map Showing Combined CMC and CG Mine Area Au Results.
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Figure 12.11. Location Map Showing Combined CMC and CG Mine Area Ag Results.
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12.2.3 COMMENTS ON COMBINED CG AND CMC ENCANTO MINE AREA SAMPLING RESULTS Taken together, the CMC and CG sampling delineates a west-northwest trending, goldsilver mineralized corridor focused along the Encanto Zone, with mineralization also hosted in the zones hanging and footwalls. This corridor has dimensions of 650 meters northwest-southeast by 350 meters northeast-southwest. The vertical dimension is 115 meters ranging from the Azucena mine (1805 m) to the Mamey mine (1920 m). From the underground and surface sampling, the gold-silver mineralization remains open along strike, as well as down dip. 12.2.4 MGC UNDERGROUND SAMPLING RESULTS Although MGC has an on-going core drilling campaign in the Encanto Zone (see Section 13), it has otherwise relied on the extensive underground sampling databases from CGs and CMCs work. This reliance on previous work is due to: a) a (near) record breaking 2010 rainy season that limited access, and b) a focus on other priority targets. MGCs limited number of underground samples are summarized in Figure 12.12, and as: La Tigra (10 samples, 10.5 m of sampling @ 0.1 g/t Au), El Aguato (3 samples, 4 m of sampling @ 0.03 g/t Au), and El Peluche (2 samples, 3 m of sampling @ 0.24 g/t Au). MGCs results are low grade, but generally consistent with those from CG and CMC. Figure 12.12. Map Showing MGC Mine Area Results (w/ CMC & CM Au).
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12.3
PORPHYRY TARGET EXPLORATION
MGCs 2010 exploration work clearly established a porphyry target in the northeast sector of the Guayabales property. CMC initially discovered porphyry style gold (copper) mineralization with a road cut sampling program in 2007. MGC expanded on CMCs work, and based upon detailed mapping and systematic sampling, synthesized an integrated interpretation of a porphyry gold target within a northwest trending structural zone. 12.3.1 PREVIOUS CMC EXPLORATION IN MILL AND PORTADA GOLD ZONES CMC collected 163 road cut chip channel samples in 2007 along what was then a new access road leading to the Encanto mining area from the northeast (Plate 12.1 and Figure 12.13). The road generally trends northeast-southwest, and perpendicular to the westnorthwest structural trend projecting onto the Guayabales property from MarmatoEchandia to the southeast. CMCs sampling identified a broad, 600 meter wide zone of fracturing, quartz veining, gold mineralization, and anomalous geochemistry just to the northeast of the underground mining area.
Plate 12.1. NW View Towards the Mill & Portada Zones Road Cut.
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CMCs road cut samples occur in semi-contiguous groups with accessible exposures of bedrock. CMC defined two mineralized trends from this sampling, named the Portada and Mill Zones. Laskowski (2010) summarized CMCs work for the Mill and Portada Zones, augmented by his personal field observations, as given below: - Portada Zone. A continuous east-west road cut, and a discontinuous northeast trending road cut expose weathered bedrock for a distance of approximately 250 meters. The geology consists of variably porphyritic, and strongly altered dioritic intrusive rocks. The sequence contains at least three distinct fracturing and veining events, each oriented generally northeast. The dominant alteration consists of sericite +/- pyrite +/- quartz (phyllic), with secondary argillic alteration. Quartz veins with sulfides and variable amounts of magnetite cross-cut the altered intrusive. As summarized by CMC, the Portada Zone road cut contains the following select mineralized intervals, from east to west: 27.8 meters @ 0.27 g/t gold, 10.0 meters @ 0.47g/t gold, and 31.1 meters @ 0.48g/t gold. - Mill Zone. This zone is exposed in approximately 150 meters of altered rock in a west-directed road cut around the bend of a ridge. The road cut is not well exposed, but the rocks appear to be similarly altered as the Portada Zone, including the occurrence of sheeted quartz veins. The outcrops contain strongly brecciated rocks that cross cut the principal northwest structures. As summarized by CMC, the Mill Zone contains the following select mineralized intervals, from north to south: 10.0 meters @ 0.44 g/t gold and 32.8 meters @ 0.37 g/t gold. Overall, the CMC road cut samples averaged 2.53 meters in width, and returned a length weighted average grade of 0.24 g/t gold. The gold grades are notably consistent, ranging from 0.03 to 1.32 g/t gold, with a median of 0.16 g/t gold. Silver was low grade (i.e., avg. 4.6 g/t Ag). Anomalous levels of copper and lead are present with gold. CMCs work is important in that it identified broad new zones of surface exposed, porphyry related gold mineralization at Guayabales.
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Figure 12.13. Maps of CMC Road Cut Rock Au-Ag-Cu-Pb Results.
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12.3.2 MGC EXPLORATION IN PORPHYRY TARGET GOLD CORRIDOR A significant component of MGCs 2010 work was to follow-up on CMCs discovery of the Portada and Mill gold mineralized zones. MGCs program consisted of detailed road cut geologic mapping and channel sampling, and confirmed, and expanded on CMCs results. MGCs road cut mapping of the exposed and weathered intrusive and subvolcanic rocks identified the following porphyry alteration assemblages: argillic, intermediate argillic, and phyllic overprinted on potassic (Moncayo and others, 2010). Quartz vein sets cross-cut the altered rocks, as originally described by Laskowski (2010). The porphyry alteration model taken from geologic mapping and the property-wide soil geochemistry provided the context for what had previously been described as distinct gold zones. MGC collected a total of 133 samples along the road cut exposed zones of porphyry alteration and mineralization (Figure 12.14). The samples were primarily chip channels, and totaled over 235 meters of sampling. Due to a lack of outcrop, the sampling was not continuous between zones, and to a certain extent within zones. The sampling program was focused in and around the Mill and Portada Zones, which are now interpreted as areas of one large porphyry target occurring within a gold-enriched northwest trending structural corridor. The porphyry altered rocks are cut by several small, late stage barren intrusions. A summary of MGCs road cut sampling results is given in Table 12.6 and Figures 12.15 and 12.16. Table 12.6. MGC Gold Sampling Results for Portada and Mill Zones. High Low Length Sampled # Au avg Zone Au Au (m) (m) Samples (g/t) (g/t) (g/t) Portada 20 18.0 9 0.46 0.83 0.26 Portada 50 48.0 24 0.36 4.89 0.08 Portada 20 20.0 10 0.26 0.37 0.16 Portada 25 21.5 12 0.39 0.64 0.14 Portada-Mill 17 9.7 6 0.08 0.45 0.04 Mill 20 13.4 8 0.16 0.30 0.02 Mill 20 12.0 7 0.42 0.45 0.30 Mill 100 66.0 33 0.28 0.97 0.09 Mill 30 15.4 8 0.18 0.30 0.04 Overall, the MGC road cut samples averaged 1.79 meters in width, and returned a length weighted average grade of 0.28 g/t gold (this compares favorably with CMCs 0.24 g/t Au avg). The gold grades are notably consistent, ranging from 0.025 to 4.89 g/t gold, with a median of 0.23 g/t gold. Anomalous levels of copper (avg=368 ppm, max=974 ppm) and lead (avg=133 ppm, max=1871 ppm) are present with the gold mineralization. MGCs mapping and chip channel sampling program clearly delineated a broad zone of fracturing, quartz veining, gold mineralization, and anomalous base metal and pathfinder geochemistry within the porphyry target area. The road cut mapping and sampling, in
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conjunction with the soil geochemistry, defines a 750 by 400 meter target characterized by elevated gold, copper, and other metals within an alteration pattern characteristic of a gold (copper) porphyry system. Figure 12.14. Location Map of MGC Road Cut Rock Au Results.
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Figure 12.15. MGC Road Cut Rock Au Results Portada Zone.
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Figure 12.16. MGC Road Cut Rock Au Results Mill Zone.
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13.0
DRILLING
This Section 13 describes the 1) 2008 drill results of previous operator Colombian Mines Corporation and 2) results from Mercer Gold Corporations on-going drill program that commenced in October 2010. Small scale mine production from the Guayabales property has been focused on the Encanto gold zone, which hosts higher-grade, structurally controlled gold-silver mineralization. Both CMCs and MGCs drill program (to date) have also focused on the Encanto Zone, as well in the hanging and footwalls of the zone. From underground and surface mapping and sampling, the Encanto structural corridor ranges from 2040 meters in width, strikes N50-60W, and dips sub-vertical to steeply at 7080 both to the southwest and northeast. 13.1 CMC DRILL PROGRAM (See Appendix 4 for a complete listing of the CMC drill assays) CMC completed a 2079.4 meter, 17 hole core drilling program in 2008 (Figure 13.1). The diamond drilling campaign was carried out by local Colombian contractor Terramundo. The drilling was collared from surface, and in some cases up to 10 meters of surface casing was set through gravels and saprolite. Cased zones at the tops of holes were drilled with either a tricone rock bit or casing shoe. Two types of core rigs were used for the drill program: 1) a Boyles 37 rig (HQ core), and 2) a man portable Winkie rig (thin walled BTW core). The Boyles rig was used to drill twelve holes, with an average total depth of 160.9 meters. Five holes were drilled with the Winkie rig (GDH05,06,09,11, and 16). The Winkie rig had limited capabilities, resulting in an average total depth of 29.6 meters. The CMC drilling, in relative priority order, was either 1) beneath the Cacica (1870 m) or Encanto (1850 m) mines, 2) along trend to the northwest and southeast of the Encanto Zone, or 3) as step-outs testing adjacent sub-parallel structures in the hanging and footwalls. The holes were located along 450 meters of projected Encanto Zone strike length. Hole orientations had generally northeast or southwest directed azimuths across the Encanto Zone strike direction, and dips of -40 to -65 degrees. The five Winkie holes never reached the intended Encanto Zone target. Further, the small diameter Winkie samples are of questionable quality. As a result, the Winkie drill results are not considered further. All twelve Boyles core holes returned either significant (Table 13.1), or anomalous, goldsilver intercepts (Figures 13.2 and 13.3). Five of the 12 Boyles holes successfully intersected the main Encanto Zone across its entire width (holes GDH04, 07, 08, 14, 15). Another four holes initiated penetration of the main zone, but were lost before completion due to difficult drilling conditions (holes GDH01, 02, 03, 13) (Plate 13.1). The remaining three Boyles holes intersected anomalous gold-silver mineralization along trend to the northwest and southeast (GDH10, 12, 17).
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Of note, GDH10 and 12 had no assay records in the database for approximately half of the drilled meters. Portions of the core have been examined by Stonehouse and were observed to be unsplit, so are presumably unsampled over these intervals (Personal Communication, May 2010).
Plate 13.1. R. Dario at a working face in the Encanto Zone within the Encanto Tunnel, Guayabales. Note the intensely altered and sheared nature of the zone.
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Figure 13.1. CMC Collar and Drill Hole Trace Map With Section Line A-A.
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Table 13.1. CMC Significant Drill Intercepts (>= 0.3 g/t Au equivalent over a min 5m).
Note 1: Au equivalent calculated with Au:Ag 55:1 ratio. Note 2: GDH16-17 returned anomalous Au-Ag, but did not meet the cutoffs.
Hole GDH-01
Includes
From
To
Est. True Length Thickness (m) (m)

11.43 1.20 5.60 5.95 5.65 2.75 21.85 3.15 30.85 3.75 11.80 3.10 44.05 1.05 1.60 5.00 29.35 10.40 1.1 4.31 4.22 4.01 1.95 9.18 1.32 5.24 0.64 2.01 0.53 18.50 0.44 0.67 2.10 9.98
Gold g/t
1.04 5.12 1.08 1.07 2.55 4.92 2.43 11.00 1.16 4.81 3.11 10.48 1.24 18.45 3.09 2.44 0.87
Silver g/t
15.2 43.8 13.0 33.1 38.3 72.3 16.5 43.0 17.0 32.7 15.3 26.2 17.6 16.6 11.0 67.6 7.8
Gold equiv g/t

1.31 5.91 1.32 1.67 3.24 6.24 2.73 11.78 1.47 5.40 3.38 10.96 1.56 18.75 3.29 3.67 1.04
185.95 197.38 194.60 195.80 21.40 3.30 87.85 90.75 50.25 50.25 87.00 95.50 91.80 97.90 78.90 96.45 27.00 9.25 93.50 93.50 72.10 53.40 117.85 99.25 103.60 101.00 122.95 97.50
GDH-02 GDH-04 GDH-04

Includes
GDH-07
Includes
GDH-08
Includes
GDH-13
Includes
GDH-14
Includes Includes
108.95 110.55 Includes 117.95 122.95
GDH-15
110.10 139.45
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Figure 13.2. CMC Drill Hole Gold Plan Map With Section Line A-A.
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Figure 13.3. CMC Drill Hole Silver Plan Map With Section Line A-A.
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A first-pass, schematic, three dimensional interpretation of the Encanto Zone was constructed by interpreting a grade shell model at a nominal 0.5 g/t gold cutoff (intervals down to 0.1 g/t Au were used where necessary to ensure zone continuity) on sections perpendicular to the strike direction, spaced at 50 meter intervals (Figure 13.4). The resulting model defines approximately 500 meters of strike length, 200 meters of dip extent, and a width ranging from 5 to 20 meters (Figure 13.5). From Laskowskis (2010) observations, mineralization is hosted on the western end within dacite porphyry and the frog-eye andesite porphyry, while on the eastern end most mineralization is hosted within the footwall metasedimentary rocks (greenschist). Alteration is variable. Further comments on the CMC drill results include: - Laskowski (2010) observed that hole GDH-07 penetrated the down plunge extension of a high grade ore shoot identified in underground workings (Plates 13.2 and 13.3; see Table 13.1). Going forward, the 3-D interpretation and modeling of shoot geometries at structural intersections will be critical for drill testing additional zones of thicker and higher grade mineralization. - Significant mineralization was intersected in the Encanto hanging wall sequence, and to a lesser extent in the footwall as well (see Figure 13.4 for an example). - The Encanto mineralized zone remains open for extension along strike and down dip. - Core recovery does not appear to be an issue for the CMC mineralized drill intercepts reported. For all of the holes, the average recovery is 95.5%. For the reported significant intercepts the average is 88.6%. Notwithstanding, further review of the mineralized intercept core by MGC is recommended to judge whether CMCs estimates of recovery appear to be reasonably accurate. - Recently, Moncayo noted after inspecting CMC core that some of the holes display porphyry style alteration (GDH-01,-02,-14), including potassic alteration (fine hydrothermal biotite + mgt + py + chlorite / sericite overprinting + early quartz A and B vein type). GDH-02,-06,-07,-09,-12, GDH-07, and GDH-13 may show evidence of propylitic/pyritic halo alteration. Taken together, the CMC 2008 core drilling program successfully extended the known strike length and down dip extent of the Encanto Zone. Further, the drilling identified what are interpreted as in-parallel mineralized zones in the hanging wall and footwall rocks. Moncayos observations of porphyry alteration in the CMC holes are especially insightful; further review and relogging of the CMC core could provide important input for developing a zoned porphyry alteration model at depth. Further work to understand these drill results in more detail would include: complete relogging of the core, check assaying of drill sample coarse rejects and pulps, development of a 3-D geologic, alteration, and grade model, and the 3-D integration of the underground mine sampling with the drill data.
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Plate 13.2. GDH07: 50.25-53.4 3.2 m Plate 13.3. GDH07 @ 50.3m Brecciated (1.32m est. true thickness) @ 11 g/t Au: dacite porphyry w/ late carbonate veins Note highly broken rock. and disseminated sulfides (2-phase pyrite) w/in high grade zone.
Figure 13.4. Section A-A Looking NE, Encanto Zone Grade Shell Interpretation. 1900 Elev
1700 Elev
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Figure 13.5a. Perspective view of Encanto Zone Au in Figure 13.5b. Perspective view of Encanto Zone Grade Drill Holes (10m contours for ref). Shell Model (10m contours for ref).
500m
500m
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13.2 MGC DRILL PROGRAM (See Appendix 5 for a complete listing of the MGC drill assays) MGC has completed 1114.6 meters of drilling in four core holes from the data available at the effective date of this report (Figure 13.6). The campaign commenced in October 2010 and is on-going. The planned drill program call for a total of 5000 meters. The diamond drilling is being carried out by local Colombian contractor Logan Drilling Colombia S.A.S. with a track mounted, light weight Duralite T600N core rig (Plate 13.4). All holes have been collared from surface, with casing set through gravels and saprolite, and drilled with HQ core, with reduction to NQ necessary in zones of poor recovery and at depths of over 400 meters. The four MGC holes had southwest directed azimuths across the Encanto Zone strike direction, and inclinations of -42 to -70 degrees. Holes MGDH-01, redrill MGDH-01A, and MGDH-02 were drilled from the same pad in the area of the La Cacica mine, and between CMC holes GDH14 and GDH15. These three MGC holes intersected the Encanto gold-silver mineralized zone (Table 13.2; Figure 13.7a). MGDH-02, drilled at a steeper inclination, intersected two thin mineralized intervals approximately 55 meters down-dip from MGDH-01 and MGDH-01A. MGDH-03 was drilled approximately 200 meters along strike to the northwest, and intersected the Encanto Zone, as well as a second in-parallel zone deeper in the hole (Figure 13.7b). Table 13.2. MGC Significant Drill Intercepts.
Note 1: Au equivalent calculated with Au:Ag 55:1 ratio.
Hole MGDH-01
Includes
MGDH-01a
Includes
MGDH-02 MGDH-03
Includes
MGDH-03
From 20.8 28.8 22 30 70 108 201 201 498
To 42.5 42.5 44 44 74 112 226 208 506
Length (m) 21.7 13.7 22 14 4 4 25 7 8
Est. True Thickness (m) 18 11.4 18.2 11.6 2.6 2.6 20.73 5.8 6.63
Gold g/t 1.702 2.361 1.585 2.12 2 0.741 0.658 1.152 1.959
Silver g/t 28.43 37.96 12.63 15.54 33.5 7 88.93 292.43 2
Gold equiv g/t 2.22 3.05 1.81 2.40 2.61 0.87 2.27 6.47 2.00
MGCs first four holes in the Encanto Zone all successfully intersected the targeted goldsilver mineralization. Furthermore, 25% (280.3 m) of the total drilled meters assayed anomalous levels of gold mineralization (i.e., >0.1 g/t Au). The gold-silver mineralization intersected by MGC is relatively consistent with expected results, and as previously reported from CMCs drilling.
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Plate 13.4a. T600N rig moving to drill pad.
Plate 13.4b. T600N rig drilling hole MGDH-02.
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Figure 13.6. MGC Drill Hole Intercepts Plan Map With Section Lines.
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Figure 13.7a. MGC Drill Hole Section B-B.
Figure 13.7b. MGC Drill Hole Section C-C.
13.3 DISCUSSION OF SURVEY ISSUES, DRILL HOLE LOCATIONS, AND CORE RECOVERY MGCs field work suggests that there are issues regarding the survey network setup by CMC. As a result, there are positional inconsistencies when comparing expected CMC and MGC drill hole locations (up to 20-30 m). This issue is a top priority to resolve, as it affects important aspects of drill planning and interpretation. There also appears to be differences in the interpretation of the dip of the Encanto Zone mineralization from steeply south to steeply north (~80 dip in either direction) that would have an impact on estimated drill intercept true thicknesses. For example, given a hole drilled perpendicular to the azimuth of the Encanto Zone at -45 degrees inclination, discrepancies in the dip direction interpretation (i.e., either to the north or south at -80) yield a 30% difference in the estimated true thickness. Accurate surveying of the CMC, MGC, and underground workings is necessary in order to more confidently model mineralized zone dips. Notwithstanding, the estimated true thicknesses given in Sections 13.1 and 13.2 are considered to be representative given the information available at the time of this report. A review of MGCs core recovery for the four holes reported yield an average of 92.4% for all intervals (note: only partial MGDH-03 to 286.6m recoveries available at the time of the report). For the reported mineralized intercepts the average recovery is 73.7%.
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This lower recovery in the Encanto Zone mineralization is not surprising, considering its sheared and brittlely deformed nature. As the drill crew gains experience on the project, it is expected that recoveries will improve. Regardless, it is not possible to judge if the low core recoveries have biased the reported gold-silver results either high or low for the mineralized intercepts. However, considering that the MGC drill results are consistent with expected grades from underground sampling and CMCs results, it is concluded that the reported intercepts are reliable and relevant at this stage of drill evaluation. Further review of recoveries versus grade will be necessary before engaging in resource estimation. 14.0 14.1 SAMPLING METHOD AND APPROACH COLOMBIAN MINES CORPORATION SAMPLING
This section, with minor edits and updated comments on drill sampling, is as originally presented in Thompsons 2007 report. CMC surface and underground sampling at Guayabales consisted of channel samples and rock chip samples (refer to Table 12.4). Most of the samples were collected underground where continuous access to mineralized intervals was generally available. Some surface sampling was also done where mineralization could be exposed. In addition, the property owners provided 263 analyses of samples taken by CG (refer to Table 12.3). All samples taken by CMC were collected by CMC technicians under the supervision of a CMC geologist. Channel samples were obtained by hammer and chisel, and typically consisted of a continuous channel. Individual rock chip samples were collected where continuous channels could not be reasonably collected over the entire sample interval. Road cuts and certain exposures in drainages were cleaned of vegetative and soil cover, mapped, and where appropriate, sampled. The sample quality is generally considered good and representative of the zones sampled, with the possible exception of surface samples in oxidized rocks, where collapse of mineralized structural zones in strongly supergene altered rocks probably downgrades hypogene values (Tewalt and Carrington, 2006). Sampling was primarily directed toward underground exposures of highly altered, veined and stockworked shear zones within the Marmato Stock, along its contact, and in adjacent sedimentary rocks. Zones of base metal veining were considered particularly favorable, and the presence or absence of native gold/electrum was confirmed visually and by hand-panning (Plates 14.1 and 14.2). It is reasonably assumed that CMCs surface and underground sampling programs continued during 2008 in a similar manner as described by Thompson in 2007. The current authors review of the CMC Guayabales drill core and logs suggest that logging and sampling was carried out to at least minimum CIM standards. Written documentation on these procedures is not available from CMC. See Section 16 (Data Verification) of this report for the authors duplicate sampling results for CMC drill core assays.
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Plate 14.1. Panning for coarse visible gold and electrum is a common practice in the Marmato District. The geologist seen here uses the technique as a general prospecting tool to explore for covered mineralization by panning soils and stream sediments.
Plate 14.2. Panning is also used as a qualitative guide to grade at Guayabales. Coarse flakes of gold panned from crushed samples taken from El Encanto Tunnel indicate ore-grade material.
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14.2
MERCER GOLD CORPORATION SAMPLING
14.2.1 MGC SOIL SAMPLES MGCs soil sampling program was designed to identify broad trends of precious metals, base metals, and pathfinder element distributions on a comprehensive, property-wide scale. Initially, an orientation survey was conducted to determine the geochemical response by soil horizon. Fourteen orientation sites with selected that were a) near vertical slopes with preserved A-B-C-(D) soil horizons, and b) located adjacent or proximal to areas known to host anomalous gold mineralization from either underground workings or road cut sampling. Soil samples of approximately four kilograms were collected from each horizon in each profile after at least 40 cm of surface had been removed; in essence a vertical trench was created. The orientation results clearly demonstrated that the B horizon gave the best geochemical responses for gold. The soil sampling program was conducted on a 100 by 100 meter, north-south, east-west grid. MGCs J. Stonehouse supervised contractors from Geominas (a Colombian geological services company), and over the course of the June-July program verified field procedures, sample integrity, and secure sample storage. The MGC procedures consisted of: - Collection of B horizon soil samples from depths of 60 to 180 centimeters using posthole diggers or soil augers. Two 2-man crews worked in parallel, and were supervised by an MGC geologist. - Information collected at each sample site included a GPS location, depth of sample, soil color, any observed mineralization, nearby mine workings, type of cover, and date and time. Where GPS was ineffective due to dense tree cover, the site was located by compass and chain from the last well located sample point. - Samples were gathered daily and stored in a locked facility in the nearby town of Portada. Samples were transported from Portada to MGCs Medellin facilities, where the they were double checked for completeness and QA samples inserted. The samples were delivered by MGC personnel to SGSs Medellin sample preparation lab. 14.2.2 MGC ROCK SAMPLES Property-wide, reconnaissance level MGC rock sampling was conducted in conjunction with geologic mapping, and consisted of chip, chip channel, and select sample types. Subsequently, detailed follow-up channel sampling, especially in the area of the porphyry target, was conducted. All rock samples were taken by, or under the direct supervision of MGC geologists The procedures are described below (after Stonehouse, 2010): - Chip samples were collected from outcrop and subcrop over an area that varied in size and orientation, and are only generally indicative of the presence of mineralization.
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- Chip channel samples were collected in an oriented manner (i.e., across vein widths, etc.), and generally with a uniform amount of rock material over each 5-10 centimeters sampled. These samples give an indication of the presence of mineralization, and to some degree its dimension as measured by width. - Select rock samples were typically collected on specific geological features thought to be related to mineralization, such as quartz veinlets, structures, etc. Sample orientation was not considered. - Channel samples were collected by hammer and chisel in a rigorous and systematic manner as follow-up to previous mapping and sample results. The channels were carefully oriented to cross structures and mineralized trends across an approximate true width. The sites were carefully cleaned before sampling. Samples were taken to a depth of approximately 10 centimeters, and an approximately equal amount of material taken over each increment of width. Typically 2-4 kilograms of sample were taken in the field, an MGC sample tag placed in the sample bag, taken to a locked facility each night, and stored for secure shipment to the sample preparation facilities in Medellin. Field notes were taken in a Company sample book or geologists notebook, and transcribed into the MGC digital database. All MGC sample books are stored in the Medellin office for future reference. 14.3.3 MGC DRILL SAMPLES MGCs diamond drill program is in the initial stages of an on-going campaign. The core is typically HQ in diameter, but is reduced to NQ diameter as required by drilling conditions. MGCs drill core procedures are listed below (after Stonehouse, 2010). - Drill core is transferred to the project core shed at the end of each shift, or more frequently when practical. MGC geologists immediately inspect the core for any discrepancies in the organization and labeling of blocks or boxes, and corrections are made immediately, and if possible, in the presence of the driller. - The core is cleaned, and geotechnically logged for recovery and RQD. - Core is then geologically logged for alteration, mineralization, lithology, and structure by the MGC geologic staff. - Upon completion of the geologic logging, core photos are taken. - The geologist marks sample runs in the hole, and prepares a sampling list that includes QA samples. The standard length is 1 meter, although sample lengths can range from 0.3 to 3.0 meters in length. Longer sample lengths are used in barren, unaltered rock, and shorter lengths are used in distinct vein or alteration zones. - The core samples are sawn into two halves with a diamond saw, with special attention given to producing representative, non-biased samples. Extremely fractured samples are not sawn (see below). - MGC geologic staff sample the sawn core, removing half of the core to prepared sample bags that are pre-numbered, with an identically numbered sample tag inserted into the bag. Extremely fractured and friable samples are carefully scooped from core
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box, with special diligence given to collecting representative samples, including the fine material. - QA samples, including blanks, standards, and duplicates are inserted into the sample sequence. Core duplicates consist of sawn quarter core. - Individual sample bags are sealed, collected in groups of 5-6, and placed in large grain/rice bags for shipment. Each bag lists the samples contained on the outside. The list of bags, the list of samples, the sample collection sheet, and the logs are all reviewed for consistency. - Samples are stored in MGCs secure, project core facility until ready for shipment. A Company chain of custody form and a lab order form are prepared. Samples are securely shipped directly to Acmes sample prep lab in Medellin. On occasion, when lab hours do not permit delivery, the samples are kept under lock in the Company garage at Mercers Medellin office (the office is occupied by staff 24 hours per day, 7 days a week). Plate 14.3 illustrates MGCs core handling protocols (described above) at the Guayabales logging facility.
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Plate 14.3 MGC Core Handling Procedures.
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15.0 15.1
SAMPLE PREPARATION, ANALYSIS, AND SECURITY CMC SAMPLES
This section updates and summarizes CMCs sample preparation, analysis, and security protocols. Other than minor edits and updates, the text is as originally presented in Thompsons 2007 report. Follow-on notes are provided by the current author. All CMC samples were collected and shipped under the supervision of a company geologist. Samples were collected in individual cotton sample bags, then transported to Inspectorate Laboratories sample preparation facility in Medellin, Colombia. At no time were the samples out of the control of CMC personnel until delivered to Inspectorate. Inspectorate then dried, and crushed the entire sample to -10 mesh. Approximately 500 grams were then split from the whole sample, and pulverized in a ring and puck style pulverizer to 150 mesh. The prepared samples were then shipped by Inspectorate, Medellin, to Inspectorates Reno, Nevada laboratory facility for analysis. All CMC samples were run for Au using fire assay techniques with over limit analyses for samples assaying over 5 g/t Au. Multi-element analysis was also completed for most of the samples using the ICP method. Coarse rejects were stored temporarily at Inspectorate, Medellin. CMC periodically picked up the coarse rejects and transferred them to CMCs warehouse in Medellin. Inspectorate was storing the remaining pulps at its Reno, Nevada facility. Inspectorate is an ISO/IEC 17025 accredited laboratory. It was Thompsons opinion that sample preparation, security and analysis had been adequate. Notes from author of February 8, 2011 report: In June 2007, CMC switched from Inspectorate to SGS labs for sample preparation and analysis. Sample preparation was conducted at SGSs Medellin lab, and assay and geochemical analyses at SGSs ISO 9001 certified Lima, Peru lab. At SGS, the assay method codes for CMC were typically FAA313 (1 assay ton fire assay) and ICP12B (aqua regia digest, 35 element ICP/AES analysis). The core from all 17 holes drilled by CMC have now been transferred to a secure warehouse leased by MGC in Medellin. At the time of this report, MGC was organizing, inventorying, and storing the available Guayabales drill core coarse rejects from CMCs drill program; the pulps were discarded.
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15.2
CMC ROCK QA/QC PROGRAM
This section 15.2 reviews and summarizes the QA/QC program results for the CMC surface and underground sampling programs conducted from 2007-2008 (QA/QC procedures were not practiced by CMC in 2006). The CRM QC results consistently reported within two standard deviations of the expected gold value, with only isolated cases occurring between two and three standard deviations (Figure 15.1). These CRMs, as well as others used during the CMC programs, are well within the CRM QC acceptance criteria. The silver analyses also pass the CRM QC acceptance criteria. As a result, it is concluded that the 2007-2008 CMC surface and underground assay results for gold and silver are within acceptable limits of precision and accuracy. For gold rock blanks, all QC samples were below the 0.005 ppm detection limit, excepting one isolated case at 0.005 ppm Au (Figure 15.2). There are no contamination issues with the rock sample gold blanks. For silver, all samples are at 0.1 ppm Ag. As a result, silver blank results are interpreted as showing no significant level of contamination. The duplicate underground and surface field duplicate samples reflect an acceptable reproducibility as portrayed by a linear relationship on the scatter plots (Figure 15.3). This is especially true considering the high grade nature of the vein-hosted gold-silver mineralization at Guayabales. This intermediate sulfidation style of precious metals mineralization is expected to contribute some component of nugget effect to the overall variance. CMCs field surface sampling procedures and protocols have yielded representative and reproducible results as evidenced by the duplicate samples.
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Figure 15.1. CMC Rock Sampling CRM QC Plots for Gold and Silver.
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Figure 15.2. CMC Rock Sampling Blank QC Plots for Gold and Silver.
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Figure 15.3. CMC Rock Duplicate Sampling QC Scatter Plots Gold and Silver.
15.3 CMC DRILL HOLE QA/QC RESULTS The CMC drill core QA samples passed all of the QC tests for CRM, blank and duplicate samples. The CRM QC charts demonstrate excellent laboratory accuracy and precision for both gold and silver analyses. The CRMs represented in Figure 15.4, as well as other CRMs used in the program, consistently assayed within the two standard deviation bounds for gold and silver. The blank samples show excellent performance for gold and silver, and suggest that low level contamination is not a problem (Figure 15.5). This is especially important considering the multi-gram gold and silver intercepts reported from the drill core. Any deviation from the baseline blank value is negligible. The duplicate core sample analyses demonstrate a linear correlation (Figure 15.6). This linear relationship holds for both gold and silver values ranging from the low to high end of the range. As with the rock sample duplicates, this correspondence is especially important considering the erratic nature of the vein-hosted gold-silver mineralization at Guayabales. The QC results confirm that CMC drill core gold-silver assays yield reproducible and representative gold-silver assay results.
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Figure 15.4. Drill Core Sampling CRM QC Plots for Gold and Silver.
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Figure 15.5. Drill Core Sampling Blank and Duplicate QC Plots for Gold and Silver
Figure 15.6. Drill Core Sampling Duplicate QC Plots for Gold and Silver
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15.4
MGC SAMPLES
This section summarizes MGCs sample preparation, analysis, and security protocols. In the authors opinion MGCs sample preparation, analysis, security and chain of custody protocols meet CIM standards. 15.4.1 MGC Sample Preparation and Analysis Rock and Soil Samples. MGCs rock and soil samples were submitted to SGS labs for sample preparation and analysis. Sample preparation was conducted at SGSs Medellin lab, and assay and geochemical analyses at SGSs ISO 9001 certified Lima, Peru lab. Soil samples were prepared according to SGS code SCR30, which includes: sample drying, -10 followed by -80 mesh screening, and pulverization to p95 -140 mesh. Rock samples were prepared according to SGS code PRP94, which includes, sample drying, two stage crushing at and 10 mesh, riffle split 250 grams, and pulverization to p95 -140 mesh. Early in the MGC program (i.e., May-June 2010), the assay method codes were FAA313 (1 assay ton Au fire assay, AAS finish) and ICP40B (4-acid near total digest, 32 element ICP/AES analysis) for surface and underground reconnaissance rock samples. Subsequently, starting with the systematic soil and road cut sampling programs, the assay method codes were switched to FAI303 (1 assay ton Au fire assay, ICP finish) and ICP12B (aqua regia digest, 34 element ICP/AES analysis). All sample pulps are currently in paid storage at SGS. Coarse rejects are discarded after 90 days. Drill Samples. MGCs drill samples were submitted to Acme labs for sample preparation and analysis. Sample preparation was conducted at Acmes Medellin, Colombia lab, and assay and geochemical analyses at Acmes ISO 9001 certified lab in Santiago, Chile or Vancouver, Canada. Prep code R200 was specified, which consists of crush 1 kilogram of sample p80 passing 10 mesh, split 250 grams and pulverize to p85 passing 200 mesh. The assay method codes were G6 for gold (1 assay ton Au fire assay, AAS finish), and 7AR1 for silver (aqua regia digest, ICP/AES analysis), and 1D02 for multielement geochemistry (aqua regia digest, 34 element ICP/AES analysis). All drill sample coarse rejects are currently stored at Acmes prep lab but will eventually be transferred to MGCs secure warehouse in Medellin. Drill sample pulps are in paid storage at Acme. 15.4.2 MGC Security and Chain of Custody MGCs security, and chain of custody procedures have been internally documented, and guidelines provided to responsible MGC technical staff (Stonehouse, 2010, MGC internal
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memo). MGCs in-house QP responsible for the implementation of these procedures is J. Stonehouse. A summary of the guidelines is given below:
Sample collection. Samples that are candidates for public disclosure will be collected by, or in the presence of an MGC geologist. Core samples will be sampled by personnel under careful supervision of an MGC geologist. Samples will not be submitted to the assay laboratory until a MGC geologist has inspected the sample site and/or reviewed the sampling procedure. Security. All MGC exploration samples will be stored in a locked, secure area or under vigilant watch from the time of field collection until delivery to the assay laboratory. Personnel not authorized to perform or supervise sampling will not come in contact with, or have access to samples at any time. Authorized personnel will be either employees or contractors of MGC. Chain of custody. Samples prepared for shipment to the lab will be grouped in sacks or boxes and sealed. A chain of custody form, either provided by the laboratory or MGC, will accompany the samples from the sample storage facility to the laboratory. Each individual responsible for custody of the samples will print and sign his or her name on the form. After samples are delivered to the lab, the finalized chain of custody form will be returned to MGCs Medellin office for filing and archive. Record keeping and sample tracking. All field sample information will be recorded in a Company sample book. Additionally, drill sample information will be noted on the drill log form. Samples will not be shipped to the lab until it is confirmed that all required data is recorded. It is the responsibility of the sampler, or in the case of drilling, the project geologist, to insure that all sample locations, and other pertinent data are entered into the GIS database maintained in Medellin. A list of all samples shipped to the assay lab will be filed in the Medellin office. This tracking list will be used to assist in monitoring the status of MGC samples, and is to include: the project, sample numbers indicating which are duplicates, standards and blanks, the date shipped, where shipped, date delivered, who is responsible for the results, date results were received, and to whom they were distributed.
Confidentiality of results. Assay results are confidential to MGC, and under no circumstances are they to be discussed until approval is received from the General Manager or V.P. Exploration in Medellin. Assay results will be distributed from the Medellin office to the project manager or responsible person for the samples, to the Manager GIS, and others on a need to know basis. The responsible person for each shipment of samples will submit in writing within 48 hours a brief report explaining the results and their implications to the general manager or V.P. Exploration. Assay QC Monitoring. Standards, blanks and duplicate results will be maintained in a separate database. These results will also be reviewed by the responsible person for each sample shipment. Any variance of greater than 15% of the expected value in standards, and any result blank greater than 60 ppb Au will be immediately reported to MGC management. The GIS manager will maintain the database and will be in charge of advising all personnel of any changes in the above limits based on statistical evaluation.
The rigorous protocols setup by MGC meet CIM best practice standards.
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15.5
MGC ROCK AND SOIL QA/QC RESULTS
This section reviews and summarizes the QA/QC program results for the MGC rock and soil sampling programs conducted in 2010. The CRM QC results reported within two standard deviations of the expected gold value, with only isolated cases occurring between two and three standard deviations (Figure 15.7). These CRMs are well within the CRM QC acceptance criteria. The silver analyses also pass the CRM QC acceptance criteria. However, it is of note that SGS labs tended to consistently bias high for the gold analyses, and low for the silver analyses. Regardless, it is concluded that the MGC rock and soil QC results for gold and silver are within acceptable tolerances for precision and accuracy. For gold rock blanks, the QC samples were below 10 ppb, excepting one isolated case at 53 ppb Au (Figure 15.8). For silver, the first three samples in the sequence demonstrate a decaying pattern indicative of possible cross contamination. The fact that sample 503 is out of tolerance for both Au and Ag further reinforces the possibility of contamination. MGC has been made aware of this situation. However, considering the relatively low absolute values for Au and Ag under consideration, the rock blank results are interpreted as acceptable for this stage of exploration evaluation. The underground and surface rock field duplicate samples reflect an acceptable reproducibility as portrayed by a linear relationship on the scatter plots (Figure 15.9). The duplicate pairs for both gold and silver are remarkably consistent, although a couple of outliers may be due to expected geologic variability, or nugget effect. MGCs field sampling procedures and protocols have yielded representative and reproducible results as evidenced by the duplicate samples.
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Figure 15.7. MGC Rock & Soil CRM QC Plots for Gold and Silver.
MG - OREAS 65a
0.58 0.56 0.54 Au ppm . 0.52 0.50 0.48 0.46
501 504 7 050 0 051 513 517 519 522 6 010 109 115 565 591 543
SGS Assay OREAS Au 0.52 ppm +2 SD -2 SD +3 SD -3 SD
Sample Number
MG - OREAS 66a
1.60 1.50
SGS Assay
1.40 1.30 Au ppm . 1.20 1.10 1.00 0.90 0.80

502 505 8 050 1 051 514 516 520 523 108 111 114 434 554 572
OREAS 1.24 ppm +2 SD -2 SD +3 SD -3 SD
Sample Number
MG - OREAS 65a
11.00 10.00 9.00 Ag ppm . 8.00 7.00 6.00 5.00
501 504 7 050 0 051 513 517 519 522 6 010 109 115 565 591 543
SGS Assay OREAS 7.80 ppm +2 SD -2 SD +3 SD -3 SD
Sample Number
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Figure 15.8. MGC Rock Blank QC Plots for Gold and Silver.
Figure 15.9. MGC Rock Duplicate Sampling QC Scatter Plots Gold & Silver.
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15.6 MGC DRILL QA/QC RESULTS The CMC drill core QA samples passed the QC tests for CRM and duplicate samples. The CRM QC charts demonstrate acceptable laboratory accuracy for both gold and silver analyses. The CRMs represented in Figure 15.10, as well as other CRMs used in the program, consistently assayed within the two standard deviation bounds for gold and silver. However, silver assayed with a bias to the low end of tolerance. The blank samples show inconsistent, but marginally acceptable performance for gold. Low level contamination may be an issue at the Acme sample prep lab (Figure 15.11). The silver all reported below detection limit for the blank QA samples. The duplicate core sample analyses generally demonstrate linear correlation at the low end, but show a scatter at higher values for both gold and silver (Figure 15.12). These are especially important to note considering the erratic nature of the vein-hosted gold-silver mineralization represented by MGCs Encanto Zone drilling at Guayabales. The QC results confirm that MGCs drill core gold-silver assays yield reproducible and representative results within the ranges expected for intermediate sulfidation vein hosted mineralization. 15.7 COMMENTS ON UMPIRE LAB ASSAYS MGC, nor previous operators CMC or CG, have conducted an umpire lab QA program. Although this is not an absolute requirement, at minimum MGC drill samples should be routinely assayed at a second ISO certified analytic lab. This check assay program should concentrate on samples from mineralized intervals, but random samples of nonmineralized material should also be included.
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Figure 15.10. MGC Drill Core Sampling CRM QC Plots for Gold and Silver.
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Figure 15.11. MGC Drill Core Sampling Blank QC Plots for Gold and Silver.
Figure 15.12. MGC Drill Core Sampling Duplicate QC Plots for Gold and Silver.
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16.0
DATA VERIFICATION
The authors data verification included independent duplicate and check sampling, as well as assay database verification. In the authors opinion, there are no significant limitations to the data verification for this level of property review. 16.1 INDEPENDENT QP SAMPLES
A suite of independent verification samples were collected by the author comprised of 1) surface chip channel samples taken along the road cut crossing the Portada and Mill zones, 2) underground chip channel samples taken at the La Cacica and Azucena mines, and 3) select quarter core samples from CMCs drill core archive. The independent samples remained under the authors control until personally delivered to the SGS sample preparation laboratory in Medellin. The samples were analyzed for gold at SGSs Lima, Peru laboratory using a one assay ton fire assay with AA finish (SGS code Au-FAA313), and silver underwent aqua regia digestion and analysis via ICP/AES (SGS code ICP12B). These methods match those used for the original assays. Digital assay certificates were sent directly to the author. QA samples were included with the submission to the lab, and were comprised of three blank samples, two gold-silver certified standards from Ore Research & Exploration Ltd Pty, and one gold-silver reference sample from MEG (Metals Exploration Geochemistry, Reno, Nevada). The blank samples indicated that there were no issues with cross-contamination, and the standards returned precise and accurate gold and silver assays that passed the QC tests. 16.1.1 DUPLICATE CORE SAMPLES Independent verification of sampling results from select drill core samples was conducted by the author at the MGC core storage warehouse on April 18, 2010. Holes GDH07 and GDH14 were selected after review of the CMC drill logs, to emphasize higher grade intercepts from the Encanto Zone. All duplicate samples were taken either directly by the author, or under his supervision. For the diamond holes chosen, the core boxes were retrieved, laid out, and the logs and core reviewed. Intervals were identified for duplicate sampling, and the core was sawn into quarters, with core bagged for duplicate analysis and the other core returned to the core box (Plates 16.1 and 16.2). For intervals composed of broken and friable material, efforts were given to take a representative sub-sample of the core material, with careful attention given to acquiring fine as well as coarse material. The duplicate core was bagged, labelled with an anonymous sample number, and secured pending shipment. The duplicate analyses for gold show reasonable linear correlation between the original CMC sample results and the independent sample assays (Table 16.1 and Figure 16.1). However, the original CMC samples on average assayed higher. The higher gold average
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is due to three high-grade samples (A008128, A008129, A008308) taken from a broken and rubbley zone with poor recovery. Elimination of these three gold outlier intervals results in nearly identical average grades of 2.155 g/t Au (original) versus 2.150 g/t Au (duplicate). High grade gold intervals characteristically have an element of nugget effect resulting in erratic duplicate assay reproducibility. However, the original CMC high grade samples are consistently higher, and the possibility of sampling bias cannot be discounted. Special attention must be given to any future drill sampling programs, particularly in high grade structural zones with poor recovery. The duplicate analyses for silver show strong linear correlation between the original sample results and the independent sample assays (Table 16.1 and Figure 16.1). Elimination of one silver outlier (i.e., sample A006426) results in nearly identical average grades of 22.1 g/t Ag (original) versus 22.2 g/t Ag (duplicate). Unlike gold, the silver duplicates suggest that there is no high grade bias from the CMC sampling. The linear correlation between the original and duplicate drill samples suggest that CMCs drill sample assay results for gold and silver are reliable within the context of geologic variance expected for a gold-silver vein deposit. Nevertheless, there is the potential for biased sampling, particularly for gold in high grade structural zones, that must be recognized. Plate 16.1 MG CMC Core Storage Plate 16.2 Core Duplicate Sampling
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Table 16.1 Original CMC Drill Sample and Independent Duplicate Sample Au-Ag Results ORIGINAL DRILL SAMPLE DUPLICATE SAMPLE Drill Hole Samp# From To Au g/t Ag g/t QP Samp# Au g/t Ag g/t
GDH07 GDH07 GDH07 GDH07 GDH14 GDH14 GDH14 GDH14 A008128 A008129 A008134 A008141 A008308 A006416 A006421 A006426 50.3 51.5 58.9 66.1 96.5 106.6 113.4 118.9 51.5 53.4 60.2 68.2 97.5 108.0 114.7 119.4 20.06 5.42 0.073 1.596 18.45 1.241 0.806 7.06 77.1 22 2.7 13.6 16.6 10.4 12.3 486 GUY-021-D GUY-022-D GUY-023-D GUY-024-D GUY-026-D GUY-027-D GUY-028-D GUY-029-D 11.250 1.492 0.077 1.694 10.180 0.957 1.803 6.220 95 11.8 1.8 10.7 11.3 12.6 12.5 336
Average
6.838
80.09
4.2091
61.463
Figure 16.1 Au core duplicate scatter Figure 16.2 Ag core duplicate scatter plots (Top:Arithmetic, Bottom: Log10). plots (Top:Arithmetic, Bottom:Log10).
Quarter Core Duplicates
500

450 400 350 Ag g/t (Duplicate) 300 250 200 150 y = 0.688x + 6.3621 R2 = 0.9838
20 y = 0.5315x + 0.5748 R2 = 0.9373 15

Au g/t (Duplicate)
10
5
100 50
0 0 5 10
Au g/t (Original)
15
20
100
200
300
400
500
Ag g/t (Original)

100

1000
10 Au g/t (Duplicate)
100 Ag g/t (Duplicate)

0.1 1 Au g/t (Original) 10 100
10
0.1
0.01 0.01
0.1 0.1 1 10 Ag g/t (Original) 100 1000
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16.1.2 SURFACE CHIP CHANNEL CHECK SAMPLES Independent surface chip channel samples were taken from exposures on the principle access road from Marmato Mountain to the Guayabales property. MGC and CMC sampling has highlighted broad, west-northwest trending zones of low grade gold mineralization termed the Portada and Mill Zones. Of note is that these zones also carry relatively anomalous levels of copper mineralization, typically in the range of 100s of ppm. A sequence of six, one meter long chip channel samples were taken at 50-60 meter increments along approximately 350 meters of northeast-southwest road cut exposure. Most of the exposures were weathered to saprolite, and were cross cut with high angle quartz veins and veinlets. Locations were determined with a hand held GPS. The results of the surface chip channel check sampling consistently returned gold mineralized and copper anomalous assays, with variable silver (Table 16.2). The CMC road cut sampling returned average grades of 0.24 g/t gold, 4.6 g/t silver, and 430 ppm copper from 163 samples. MGCs sampling yielded average grades of 0.28 g/t gold, 4.6 g/t silver, and 368 ppm copper from 133 samples. From the limited number of the independent check samples, the average grades are remarkably similar (i.e., 0.30 g/t Au, 1.6 g/t Ag, 477 ppm Cu). These results not only indicate that the MGC and CMC samples are reliable and reproducible, but further highlight the consistent nature of the porphyry mineralization in the Portada and Mill Zones. Table 16.2. Independent Surface Sampling Duplicate Assays
Sample GUY-001-S GUY-002-S GUY-003-S GUY-004-S GUY-005-S GUY-006-S Average Type Rockchip channel Rockchip channel Rockchip channel Rockchip channel Rockchip channel Rockchip channel Au g/t 0.125 0.427 0.479 0.187 0.408 0.181 0.301 Ag g/t 0.2 1.0 0.2 23.6 7.8 18.1 8.5 Cu ppm 260 660 373 352 645 569 477 Location La Portada zone La Portada zone La Portada zone La Portada zone La Portada zone Mill zone
16.1.3 UNDERGROUND CHIP CHANNEL CHECK AND FIELD DUPLICATE SAMPLES Independent underground chip channel samples were taken from the Azucena and La Cacica mines. At the time of the site visit on a weekend, access to the other mines was restricted due to locked gates at the portals; access to Azucena and La Cacica was given by special permission. At the Azucena mine, four duplicate samples were taken from the access tunnel leading to the Encanto Zone, and two samples were taken from recent working faces in drifts along the Encanto (Table 16.3). Directly comparing the duplicate samples, the
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independent samples average 0.863 g/t Au and 16.5 g/t Ag, versus the CMC sample averages of 1.597 g/t Au and 4.4 g/t Ag. The variance between the averages is due to a higher grade CMC sample compared to independent sample GUY-020-U. Notwithstanding, the agreement between the original and duplicate assay values is well within the expected range for the gold-silver vein mineralization at Guayabales. The two check samples taken from the recent working faces returned gold-silver values consistent with previous CMC sampling in those two areas of the mine. Table 16.3. Independent Duplicate and Check Sample Assays Azucena Mine
Sample GUY-014-U GUY-015-U GUY-017-U GUY-018-U GUY-019-U GUY-020-U Average Type Rockchip channel Rockchip channel Rockchip channel Rockchip channel Rockchip channel Rockchip channel Au g/t 0.160 0.106 2.436 0.155 0.067 3.068 0.999 Ag g/t 1.5 6.4 50.5 6.1 0.2 58.3 20.5 Original CMC Sample Comments SN 289491, Au 0.038 g/t, Ag 3.1 g/t NA, recent drift working face NA, recent drift working face SN 289491, Au 0.079 g/t, Ag 6.9 g/t SN 289491, Au 0.059 g/t, Ag 0.3 g/t SN 289491, Au 6.210 g/t, Ag 7.2 g/t
At the La Cacica mine, there were no CMC sample tags or markings in the accessible workings, and as a result, check instead of duplicate samples were collected (Table 16.4). A total of five samples were taken along 72 linear meters of a west-northwest oriented tunnel in the Encanto Zone. The samples were collected as one meter chip channels along either rib of the workings, except GUY-008-U which was taken from the working face at the end of the tunnel. The gold-silver assay results are in general agreement with expected values given by previous sampling. Table 16.4. Independent Check Sample Assays La Cacica Mine
Sample GUY-008-U GUY-009-U GUY-010-U GUY-011-U GUY-012-U Average Type Rockchip channel Rockchip channel Rockchip channel Rockchip channel Rockchip channel Au g/t 0.358 0.109 0.483 6.000 0.275 1.445 Ag g/t 36.5 6.1 2.1 164.0 6.3 43.0 Location La Cacica Mine. La Cacica Mine. La Cacica Mine. La Cacica Mine. La Cacica Mine.
16.2
INDEPENDENT ASSAY DATABASE VERIFICATION
The author supervised an independent verification of gold and silver assays in CMCs drill and rock sample databases. Approximately 10% (over 200 records) of the digital assay records were randomly selected and checked against the laboratory assay reports. The gold-silver assays in the reports were cross-checked by sample number against the entry in the database, with zero errors or discrepancies.
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MGCs digital drill database also underwent a random 10% (over 40 records) check versus the assay lab certificates. In addition, all assay intervals > 1 g/t Au were vetted. The checks returned with no errors in the database for either the gold or silver assays. 16.3 INDEPENDENT DATA VERIFICATION BY THOMPSON
The current author has left this section verbatim as originally written by Thompson (2007). Prior to 2007, two independent rounds of sampling have been conducted during 2006 at Guayabales. One of these sampling programs was conducted by a third party, Colombia Gold (CG) and the other by CMC. In the case of the Azucena Mine area, the same or similar areas were channel sampled. Although not identical, samples taken by CMC show a similar metal suite and tenor-range as samples taken at similar locations on Guayabales by CG. Similar results for the data sets suggest that sampling techniques and analyses are comparable, and the data is valid. Figure 12.5 shows a detailed view of sample locations for comparable areas sampled by both CMC and CG. During the construction of this report, the author has confirmed that the reported results tabulated for CMC data agree with those reported on the original certificates of assay.
17.0 17.1
ADJACENT PROPERTIES INTRODUCTION
The Guayabales property is located within the Middle Cauca Gold Belt, which is credited with more than 16 million ounces of gold resources/reserves and production (Sillitoe, 2008). The Middle Cauca Gold Belt extends approximately 350 kilometers north-south (Figure 17.1), and contains hundreds of bedrock and placer gold occurrences, including the recently discovered La Colosa deposit, 100% owned by AngloGold Ashanti Limited, and the historic Marmato Gold District that hosts the Guayabales property. The Guayabales property is located immediately adjacent to, and on trend with the mineralized structures of the Marmato mining complex (Figure 17.2). The Marmato complex contains three mining areas consolidated by Medoro Resources Ltd. (Medoro). The Medoro package, now referred to as simply Marmato, was formerly described as three land parcels: Zona Alta, Zona Baja, and Echandia. The distinction between the Alta (or upper), and Baja (or below) zones, is a road between the two at an elevation of approximately 1300 meters. The Guayabales propertys Encanto gold zone is located less than 2 kilometers to the northwest of these two mining zones. The author has relied on cited sources and personal communications for the information in sub Sections 17.1-17.4, and 17.6-17.7 which follow. The author has not independently verified the information in this section 17, and this information is not necessarily indicative of the mineralization on the Guayabales property, which is the subject of this
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technical report. Section 17.5 is the authors interpretation based upon his work at Guayabales, and from the aforementioned cited sources and personal communications.
Figure 17.1 Principal Gold Belts and Districts of Colombia (Sillitoe, 2008)
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Figure 17.2. Location map of the Guayabales, Marmato and Echandia Properties, Colombia.
17.2
MARMATO GOLD DISTRICT - HISTORY
Several versions of the source of the name for the Marmato District exist in the literature. The district has been exploited since pre-historic times. The Indians residing in the district at the time of the Spanish Conquest were famous gold miners and metalworkers, and much of this work is on display in Colombian museums. Spanish colonists assumed control of the Marmato mines in 1527, and the area has been in almost continuous production since. The district was so renowned that it was pledged by Simon Bolivar to gain donations and financing for his war of independence from Spain. After the War of Independence against Spain, several English companies operated mines in the Marmato region until 1925. After 1925, the Marmato area was managed by differing agencies and departments of the Colombian government. Various areas and mines were leased or licensed to private companies and individuals. Foreign companies have been involved in exploration in the district again since the late 1970s. In 1993, a 300 tpd mining and processing facility was
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constructed and operated by Mineros Nacionales, S.A., and this plant has been subsequently expanded and is reported to have a capacity of 800 tpd, although it does not seem to run at this capacity. A review of existing data compilations (completed by Wilson, 2010) accumulated by Colombian Goldfields indicates that production records are incomplete, and only indicative in nature. Notably Wilson reports that incomplete data exists for six widely scattered periods: 17781823; 18321836; 19091914; 19311935; 19411944; and 1967 to 1998. Total recorded production is 205,834 ounces during 56 of the 231 years studied. Average annual gold production was between 1,206 and 12,000 ounces per year. Wilson used an average annual production rate of 3,954 ounces per year yields a value of about 900,000 ounces of gold mined legitimately at Marmato. Additionally, this does not include pre-Colombian gold mined by native peoples and gold mined from 1527-1778 for which there is no record. Wilson estimates this to be conservatively 500,000 ounces of gold. Assuming that recoveries have been historically in the 60% range, this indicates that 2.3 Million ounces of gold have been removed from the area by mining. Better records are available for the period 2004 -2009 and are given in the table below:
Table 17.1 Gold Production from the Municipality of Marmato 2004-09 (from Wilson, 2010).
Year 2004 2005 2006 2007 2008 2009 Q1 & Q2 Total Average Gold (oz) 39,728 63,174 44,824 35,523 34,018 16,754 234,021 45,549 Silver (oz) 55,436 63,488 72,088 59,739 62,075 29,175 342,001 62,182
17.3 GEOLOGY AND MINERALIZATION OF MARMATO (refer to Section 9.1 for a review of Regional and District Scale Geology) The Marmato mining complex is located one kilometer southeast of Guayabales, and lies within a major northwest trending fracture/shear zone of the Cauca-Romeral fault trend. This trend is credited with more than 16 million ounces of gold resources/reserves and production (Sillitoe, 2008). The Marmato trend consists of an extensive set of subparallel veins and veinlets over an area in excess of 1 kilometer along strike, and more than 1 kilometer wide, while the Echandia trend consists of a similar set of parallel to sub parallel veins and veinlets explored and developed over an area roughly 1 kilometer along strike and more than 500 meters wide. Two distinct sets of northwest trending mineralized shears are evident in the greater Marmato area. Structures within the Zona Alta and Zona Baja of Marmato, the Marmato Trend, typically range from N45oW to N60oW. Within the area of Mina Echandia, adjacent to and north of the Zona Alta and
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Zona Baja, the Echandia trend structures range from N60oW to N80oW in strike. Locally important eastwest striking structures are important controls for mineralization and form high grade shoots at intersections with the main trends. Most structures in the district are very steep to sub-vertical. Individual structures and veins range from a few millimeters to more than one meter, and locally coalesce to form wider stockwork zones. The larger structures along both trends have been mined extensively and have demonstrated excellent continuity. High-grade gold-silver mineralization is localized within through-going structures, and at structural intersections. These higher grade zones occur within broad halos of lower grade disseminated stockwork and porphyry-style mineralization that have potential for bulk-mineable exploitation. The precious metal mineralization at Marmato is exposed over a vertical extent of more than 1,000 meters. The host rocks, alteration, geochemistry and mineralization in the Marmato District are characteristic of a bulk tonnage, porphyryrelated gold deposit, similar to other recent discoveries in Colombia. 17.4 MARMATO RESOURCE ESTIMATES
The Zona Alta consists of approximately 179 hectares generally demarcated as that portion of Marmato Mountain above approximately 1300 meters elevation. The Zona Baja is operated by Mineros Nacionales (Now 100% owned by Medoro). Mineros Nacionales is producing approximately 877 metric tonnes per day from a cut and fill and open stull stope operation, at an average grade of 3.2 g/t Au, and 5.3 g/t Ag. Mineros Nacionales production continues today through the Marjua Level, reportedly developed by the Spanish during Colombias colonial period. To the authors knowledge, NI 43101 compliant resources have not been estimated for Mina Echandia. In March of 2010, Medoro released a NI 43-101 compliant Zona Alta resource estimate for the consolidated Marmato District which they now control and continue to consolidate (Wilson, 2010). This resource estimate was updated on January 6, 2011 as publicly disclosed by Medoro (Table 17.2). As of the effective date of this report, the corresponding updated technical report had not yet been filed on Sedar. The author of this report has been unable to verify the Medoro resource estimate information, and this information is not necessarily indicative of the mineralization on the Guayabales property. Table 17.2. Marmato Project Mineral Resources as Updated January 6, 2011.
Source:MedoroResourcesLtd.newsreleasedated GOLD SILVER January6,2011. Tonnes Grade OuncesGrade Ounces (at0.3g/tAucutoff) (mm) (g/t) (mm) (g/t) (mm) MeasuredMineralResource 34 1.0 1.1 8.2 9 IndicatedMineralResource 192 0.9 5.5 4.6 28 MeasuredandIndicatedMineralResource 226 0.9 6.6 5.1 37 InferredMineralResource 116 0.9 3.2 5.9 22
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17.5 SIMILARITIES BETWEEN MARMATO AND GUAYABALES GOLDSILVER MINERALIZATION The geology exposed at Marmato and Echandia is very similar in character to the Guayabales property, and can be considered analogous, due to its close proximity and geologic similarities, including the same host rocks and structural trends (Lewis, 2006). The similarities of lithological, structural, alteration, and mineralization characteristics between these three adjacent properties is summarized below: Rock types: Three primary intrusive units and two secondary units are recognized at Marmato. These are dacite porphyry, a later dacite porphyry with bi-pyramidal quartz phenocrysts, and an andesite porphyry with plagioclase metacrysts. The two secondary units occur as dikes and are significantly smaller in volume and are intermittently mineralized. Style of mineralization: High grade vein gold-silver mineralization is localized within through-going structures, and at structural intersections. These higher grade zones occur within broad halos of lower grade disseminated stockwork and porphyry-style mineralization that have potential for bulk-mineable exploitation. Veins are characterized by their minor amount of gangue material. Vein-hosted sulfides are primarily pyrite and pyrrhotite with minor chalcopyrite, sphalerite, galena, tennantite and tetrahedrite, and occasional bornite and chalcocite. Gold occurs freely as electrum. Silver is contained as exsolutions in sphalerite and chalcopyrite, in electrum, and as solid solution in galena and tetrahedrite. Mineralization is commonly banded. Gangue minerals are silica, calcite, and anhydrite. There are often open space fillings. Structure: Veins are localized by a strong NW-SE trending regional structural tendency and areas of higher grades are often controlled by intersections with roughly east west trending structures. Higher grade shoots often plunge as defined by the intersection of these two structural trends. Alteration: Alteration is propyllitic and intermediate argillic. Propyllitic alteration is characterized by chlorite and epidote in intrusive rocks being developed at the expense of feldspar and biotite. Argillic alteration is characterized by large quantities of sericite and kaolinite. Much of the kaolinite may be secondary or the result of weathering. The above characteristics of the Marmato District are observed in Zona Alta, Zona Baja, Echandia, and Guayabales. Exploration at Guayabales has demonstrated that not only does Guayabales share similar features such as host rock types, structural control, style of mineralization and alteration, but also the potential to host bulk mineable gold-silver mineralized material.
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Moncayo (Moncayo and others, 2010) observed that the upper exploitation level at Marmato is at an approximate elevation of 1500 m.a.s.l. Yet the Marmato adjacent, southern sector of the Guayabales property is at an elevation above 1800 m.a.s.l. The northwest projection of the Marmato structural trend into Guayabales is characterized by oxidized /sheared rocks, but with no quartz or sulphide minerals as fracture fillings. It follows that the mineralized system evident at Marmato may indeed be at depths +250300 meters below the current topographic surface at Guayabales. This straight-forward, but extraordinarily important observation may have significant exploration implications. 17.6 CURRENT ACTIVITIES AT MARMATO
Current activities at Marmato are readily observed in the field. Operations of various mines are continuing and numerous mills in Zona Alta continue to process ore. Miners are hired from the local communities to extract ore from the various small operations. At Zona Baja, several small milling operations process ore from all over the district. The principal operator, Mineros Nacionales, continues to process ore and presumably mine material to process. Because of the type of license granted on Echandia, production must be maintained from the property. For this reason, at least five mines are kept operating at the property to insure compliance with this requirement. Also, small mills, which are most likely illegal, are currently running in the Cien Pesos portion of the Echandia property. In the Spring of 2010, at least 10 diamond drills and possibly more were seen operating in the Marmato area for Medoro. Drilling was observed to continue in Zona Alta and Echandia, and was presumed to continue in Zona Baja as contractors vehicles were observed entering and leaving the area (J.M. Stonehouse, Personal Communication, May 2010). Efforts are continuing by Medoro to acquire the remaining small licenses and milling operations in the area. Conversations with local residents suggest that there exists some resistance to this, but it is felt that this represents a bargaining position more than a true recalcitrance on the part of owners (J.M. Stonehouse, Personal Communication, May 2010). Some aspect of this reluctant attitude is also due to closure of mines and mills once they have been purchased.
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18.0 18.1
MINERAL PROCESSING AND METALLURGICAL TESTING COMMENTS ON GUAYABALES SMALL SCALE MINE PRODUCTION AND PROCESSING
At present MGC does not have any recent or historic metallurgical test results for the Guayabales property. However, small scale production continues on the property by the Comunidad Minera Guayabales. The CMG is producing approximately 30 to 50 metric tonnes per week from multiple underground workings. Ore is processed in up to 15 separate mills operating at from 1 to 14 metric tonnes per week. Of the ore processed on the property, gold-silver recovery is achieved by milling, gravity concentration and cyanidization. Mercury is not used on the Guayabales property. The late-stage fracturecontrolled nature of the precious metals mineralization in the form of electrum and native gold may be a primary reason for the apparently acceptable recovery rates from the unoxidized Guayabales mineralized material. 18.2 METALLURGICAL PROPERTIES TEST WORK AT ADJACENT MARMATO
Although metallurgical test results from the adjacent Marmato (Zona Alto and Zona Bajo) and Echandia properties are not from the Guayabales property, they are from a similar geological environment. As such, they may provide some insight on the metallurgical characteristics of Guayabales mineralization as summarized in this section. Colombia Goldfields commissioned Kappes Cassidy to conduct milled cyanide bottle roll tests on sulfide ore from the Zona Alta portion of the Marmato District in 2006 (Wilson, 2010). The objective was to test the amenability of sulfide ores to cyanide leaching, as a majority of the mineral resource is expected to be sulfide rather than oxide. Samples were selected from the underground faces in the Zona Alta, using three sulfide composites of about 20 kg that were created using 15-17 coarse sample rejects for each. Two composites were made at a grade of 1 g/t to 2 g/t gold to represent the expected head grade of a possible bulk mining operation, and one at a grade of 10 g/t to 15 g/t gold to represent the head grade of the veins currently being exploited by the small scale miners. Four bottle roll tests were carried out on 1 kg sized splits of each composite. (Wilson 2010). The metallurgical testing yielded extractions of 77-83% gold at a 1.7 mm grind size, and 90-95% gold recovery at grind sizes of 0.106 mm, 0.90 mm and 0.075 mm, with no significant variation in the recovery between the three finer grind sizes. Silver extraction was 51-52% at a 1.70 mm grind size and 49-81% at the finer grind sizes (Wilson 2010). SGS Lakefield Research Ltd, Lakefield Ontario, Canada (SGS Lakefield) carried out preliminary metallurgical test work for Colombia Gold in 2005 and 2007 at the Zona Baja and Echandia mines (Wilson, 2010). Twenty samples were shipped to the lab representing mine levels 16-19, and test work was carried out on six samples designated
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as medium grade. No work was carried out on samples from mines in the upper levels of Echandia. SGS Lakefields work is summarized below: The head grades of the samples varied from 2.3 24.7 g/t Au. A screened metallic assay of a sample with head grade of 12.9 g/t showed that 14.8% of the gold was in the +150 mesh fraction. The mineralogy consists of several sulfide species, with pyrite being prevalent with lesser amounts of chalcopyrite, and trace amounts of galena, sphalerite, arsenopyrite, pyrrhotite and magnetite. Gold appeared as inclusions in the sulfide species and was somewhat poorly liberated. Semi-qualitative liberation analysis by manual point counting on nominal 10 mesh material showed that 34% of the gold in pyrite was locked, 58% was liberated and 8% was attached. COMMENTS ON THE RELEVANCE OF MARMATO PROPERTIES METALLURGICAL STUDIES TO GUAYABALES
18.3
It is unknown if the metallurgical results described in the previous section will be representative for the mineralization at Guayabales. However, the many similarities in mineralized material from Guayabales and the adjacent Marmato properties make this information relevant for general informational purposes. This relevance is further emphasized by the broad similarities in process flow between the artisanal miners at Guayabales and the formal metallurgical test work. Further relevance from the Marmato studies comes from the observation that high grade gold samples contain appreciable coarse gold, with an example of +14.8% in the +150 mesh fraction. This observation points to the importance of performing screen fire analysis on high grade Guayabales samples, particularly from drilling, to determine if traditional fire assay sample preparation may result in under-estimation of the total gold content. 19.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES There are no estimates of mineral resources or mineral reserves on the Guayabales property at this time. 20.0 OTHER RELEVANT DATA AND INFORMATION
The author is unaware of any additional relevant data or information.
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21.0 INTERPRETATION AND CONCLUSIONS (refer to Figures 21.1 and 21.2; also see Figure 17.2) The mineralization at Guayabales, and the Marmato District in general, is related to the emplacement of porphyry stocks of late Miocene age. Structure is an important control on the mineralization, particularly along northwest trending shear zones. Guayabales hosts a porphyry gold (copper) system and related intermediate sulfidation gold-silver mineralization within a northwest trending structural corridor that projects across the property from the Marmato-Echandia mining complex to the southeast. MGCs mapping of argillic-intermediate to argillic-potassic overprinted by +- phyllic alteration assemblages, coupled with a coincident suite of zoned geochemical anomalies, has clearly established the 750 by 400 meter porphyry gold target. Road chip channel sampling across the gold-enriched porphyry has consistently yielded average grades in the range of 0.24 to 0.28 g/t gold. The Encanto Zone gold-silver mineralization has long been established as a viable exploration target through the work of small scale miners, as well as substantial underground sampling programs (over 1000 meters of chip channeling) by previous operators Colombian Gold and Colombian Mines Corporation. Taken together, the CMC and CG mine area sampling delineated a west-northwest trending, gold-silver mineralized corridor centered along the Encanto Zone, with dimensions of 650 meters northwestsoutheast by 350 meters northeast-southwest, and averaging 1.38 g/t gold and 27.2 g/t silver. The Encanto Zone proper ranges from 20 to 40 meters in width, strikes N5060W, and has a sub-vertical dip. CMCs 17 hole diamond drill program increased the Encanto Zones down dip extent to 200 meters, with intercepts such as 21.85 meters (9.18m est. true thickness) averaging 2.43 g/t gold and 16.5 g/t silver, including 3.15 meters (1.32m est. true thickness) at 11.0 g/t gold and 43 g/t silver from GDH07. MGCs Encanto Zone drill program, which is on-going at the time of this report, has completed 1114.6 meters of drilling in four core holes. All four of MGCs holes intersected the Encanto Zone, with results similar to those reported by CMC, including 21.7 meters (18 m est. true thickness) averaging 1.70 g/t gold and 28.43 g/t silver in MGDH-01. From the CMC and MGC drilling, the Encanto Zone remains open along strike and to depth, with additional exploration potential within in-parallel mineralized zones in the hanging and footwall rocks. Taken together, the geologic mapping, property-wide geochemistry, drilling, and underground and road cut sampling define a 1,100 meter wide northwest trending corridor of porphyry gold (Portada and Mills Zones) and intermediate sulfidation goldsilver (Encanato Zone) mineralization. This northwest corridor is on trend with the Marmato mining complex to the southeast. Marmato is located one kilometer southeast of Guayabales, and is known to lie within a major northwest trending fracture/shear zone that controls mineralization. The host rocks, alteration, geochemistry and mineralization in the Marmato District are
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characteristic of a bulk tonnage, porphyry-related gold system, similar to other recent discoveries in Colombia. At Marmato, high grade gold-silver mineralization is localized within through-going structures, and at structural intersections. These higher grade zones occur within broad halos of lower grade disseminated stockwork mineralization that have potential for bulk-mineable exploitation. At Guayabales, the high grade gold-silver mineralization of the Encanto Zone, as well as the lower grade porphyry gold mineralization of the Mill and Portada Zones, are similar in style and grade to the adjacent Marmato and Echandia mines. The precious metal mineralization at Marmato is exposed over a vertical extent of more than 1,000 meters. To date, exploration at Guayabales has been limited from the surface to the upper 100-200 meters of the mineralized system. Moncayo (Moncayo and others, 2010) observed that the upper exploitation level at Marmato is at approximately 1500 m.a.s.l., yet the southern sector of the Guayabales property is at an elevation above 1800 m.a.s.l. It follows that the mineralized system evident at Marmato may indeed be at depths +250-300 meters below the current topographic surface in the southern sector of the Guayabales property. This straight-forward, but extraordinarily important observation may have significant exploration implications. MGCs 2010 exploration program focused on three principal goals: a) perform a property-wide assessment based upon geological mapping and geochemical sampling in order to provide context for the intermediate sulfidation gold-silver and porphyry gold styles of mineralization, as well as to define new exploration targets, b) conduct detailed road cut geological mapping and sampling to further refine the porphyry alteration and geochemical models and their relationship to gold mineralization, and c) initiate a drill campaign in the Encanto Zone to confirm previous CMC results, as well as to test for extensions along strike and down dip. MGCs 2010 work achieved these primary objectives. As a whole, the exploration database that has resulted from MGCs 2010 programs, and previous work spanning from 2005 (Colombia Gold) through 2009 (Colombian Mines Corporation) is extensive from the perspective of early-stage mineral property evaluation. These data are judged to be reliable, as three different companies, working independently, have generated similar results over time. The authors independent sampling and database checks, and review of MGCs and CMCs sample methods, preparation, analysis and chain of custody have further validated these results. In the case of Encanto Zone related exploration, the underground sampling has now been augmented by CMCs and MGCs initial drill testing. While this drilling has verified, from an exploration vantage, the continuity of Encanto gold-silver mineralization along strike and to depth, detailed geologic and grade modeling will require a tighter drill spacing (i.e., 25 m or less), careful surveying, and increasing recovery rates in the mineralized zones before a 43-101 compliant resource can be estimated. Further work on determining the structural controls and three dimensional geometries of the high grade zones should be a priority. The Encanto Zone remains open along strike and down dip, with additional, but lower priority targets occurring in the hanging and footwalls of the zone. Road cut mapping and sampling north of the underground mining area has
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delineated a broad zone of lower grade porphyry gold mineralization. The work to date has been conducted at a density, and is of a type to identify a viable porphyry exploration target. This is especially so considering the cover of soil and vegetation that conceals the mineralization over +95% of the property. However, additional work, including geophysics (IP, magnetics, VLF-R) and drill testing will be needed to delineate the porphyry gold zones and to further determine the distribution and grade of the mineralization. MGC has identified a number of priority exploration targets at Guayabales. The exploration targets identified by MGC define Guayabales as a property of merit, and justify a significant follow-up work program as discussed further in Section 22 of this report.
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Figure 21.1. Porphyry-style Alteration with Rock Gold Results on Geology.
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Figure 21.2. Porphyry-style Alteration with Rock Gold Results on Gold-in-Soil.
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22.0
RECOMMENDATIONS
The geologic relationship of gold-silver intermediate sulfidation to porphyry gold mineralization provides metallogenic context for the exploration targets and 2011 program for the Guayabales project. MGCs principal exploration target is a bulktonnage, porphyry precious metals deposit that will be potentially amenable to open-pit mining. A second target type with upside exploration potential is the long recognized, higher-grade vein zones amenable to selective, underground mining exploitation. The potential for defining economic gold-silver mineralization of this style is clearly manifested by the presence of a number of small scale mining operations on the property. General recommendations for the 12 month Guayabales work program are listed below: 1) A system of umpire lab check assays should be implemented to provide additional confidence in MGC drill sample results. This QA program should concentrate on samples from mineralized intervals, but random samples of non-mineralized material should be included. 2) A study to determine if there is a recovery versus grade sampling issue for Encanto mineralized intervals should be conducted. Efforts to improve recoveries at the rig should continue. 3) A study of whether a coarse gold component can be identified with screen fire assay analysis of coarse rejects from mineralized Encanto Zone intervals should be conducted. 4) Mineralized and altered zones from the CMC drilling should be re-logged and results confirmed by re-assaying the available coarse rejects. 5) A survey network on the property should be established as a base to accurately locate current and past drilling, all mine openings and other works related to ongoing mining, as well as to provide a reference for field mapping and setup a grid for geophysical surveying. 6) An updated, photogrammetrically accurate topographic base should be generated, most likely from satellite stereo imagery. The imagery must be tied to the local ground survey from 5) above. 7) A 10,000 line-meter IP program should be carried out on a priority basis over the porphyry target area. In conjunction with this survey, magnetics and VLF-R should be performed over the entire property. 8) The current drill program should be extended to a total of 7500 meters (approximately 1100m already drilled) in order to test priority targets. 9) A follow-up drill program of 12,000 meters to follow-up on the results of the drill program from 8) above. 10) Underground workings should be re-mapped and check sampled to confirm earlier results. Furthermore, additional underground channel sampling should be conducted for tunnels with limited CMC or CG data. 11) A metallurgical testing program should be carried out on fresh samples from recent drilling to characterize recoveries from gravity techniques, direct cyanidization, flotation with cyanidization, etc.
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12) All exploration data should be compiled into an integrated 3-D model in order to review results to date, plan future work, and as an input to 13) below. 13) A resource estimate should be prepared for the Encanto mineralized corridor, as well as potential near-surface porphyry related mineralization. 14) Additional property should be acquired in areas bounding the identified target areas and obvious extensions of mineralized trends. The one year Guayabales exploration program is budgeted at US$5,831,635, including land payments until the end of 2011 (Table 22.1). Table 22.1. 2011 Guayabales Program Budget.
ITEM
Access Drilling Geological consulting Environmental Equipment Geochemistry Geophysics Assay Laboratory Line cutting Mapping Metallurgy Other contracts Permitting Reclamation Field Supplies Surveying Camp costs Personnel/Labor costs TECHNICAL SUBTOTAL COMMUNITY/SOCIAL SUBTOTAL Communications Legal Licenses etc. Land payments Safety, health, training Logistics, vehicles, etc Personnel DIRECT PROJ ADMIN SUBTOTAL TOTAL Contingency
DESCRIPTION
Road build/maint & drill pads, etc 18500 meters of core drilling 43-101 resource report On-going clean-up req.; water treat Field gear, generators, etc. Field survey costs IP, VLF, and magnetics surveys Drill & geochem analyses For geophysical surveys, etc. Surface and UG Contract services Satellite imagery, photogrammetry, etc Permits for roads, drilling, etc. Reqd reclamation work, drill pads etc Sample bags, expendables etc Survey base network, DH locs, etc Project housing, food, etc Professional staff & local labor
COST USD
95,000 3,000,000 100,000 76,000 60,000 90,000 52,000 665,000 30,000 36,000 80,000 25,000 18,000 100,000 60,000 30,000 93,000 489,000 5,099,000 62,000 12,000 24,000 12,000 300,000 36,000 130,000 14,400 528,400 5,689,400 142,235
Health, community projects, education, etc Cell phones etc Title opinion, etc Govt req CMG 2011 payments Company & govt req Travel & field expenses Professional staff
Estimated at 2.5%
GRAND TOTAL
5,831,635
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The 2011 work program is initially focused on further drill testing of the Encanto related mineralization. Accurate surveying of drill hole and underground working locations in the Encanto mining area will allow a 3-D model of the gold-silver mineralization to be developed. Check assaying of CMC drill results, as well as underground confirmation sampling will provide additional confidence in using these data for the Encanto modeling exercise. Further, underground geologic mapping will very likely provide important new, and detailed information on the mineralizing controls of the system. Beyond the Encanto related mineralization, the geophysical surveys will provide important information on the porphyry gold system. Based upon these results, targets can be selected for drill followup. From the 2011 drill campaign results, it is anticipated that a 43-101 inferred resource model can be developed for the Guayabales project.
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23.0
REFERENCES
Bermundez, Omayara -Lugo, 2000, Mineral Industry of Colombia 2000, USGS. Calle, B., Gonzalez, H., de la Pena, R., Escorce, E. and Durango, J., 1984, Mapa Geologico Preliminar. Plancha No. 186 (Riosucio). Instituto Nacional de Investigacion Geologico Minera, Informe 1878 (1980), 1 map at 1:1,000,000 scale. Cinits, Robert, 1993, Report No. 740: Geological Report on the Cordoba Joint Venture Properties, Departments of Antioquia and Caldas; for Conquistador Mines. Columbia Goldfields, Inc., 2006, Zona Alta press release dated December 19, 2006. Cuellar, J.V. and Mora, M., 1985, Estudio geologico del yacimiento de oro de Marmato. In: Wagner, J. V., (ed), Sexto Congresso Latinoamericano de Geologia, Vol. 3, p. 342377. Duran, R., et al., 2005, Complementacion Geologica, Geoquimica y Geofisica (Magnetometrica) de las Planchas 166, 167, 186 y 187, Escala 1:100,000, IGAC, Zona de Influencia del Sector Caucal-Romeral. Report by Union Temporal Dunia ATG (Dunia Consoltores Ltda. Y Asesorias Tecnicas Geologicas), Bogota, 23 November 2005, 391p. Emmons, W.H., 1937, Gold Deposits of the World, First Edition, McGraw-Hill Book Co. Inc., in Shaw, Rober P., Gold Mineralisation in the Northern Andes: magmatic setting vs. metallogeny, XI International Mining Congress, Bogot, Colombia, Oct., 2000 Technical Abstracts. Feinger, Tomas, 1973, Geology and mineralization of an area in the Departments of Antioquia and Caldas (Subzone IIB), Colombia, USGS Open File Report 73-69. Gonzalez, H., 1980: Geology of the Sheets 167 (Sonson) and 187 ( Salamina); INGEOMINIAS, Geology Bulletin, No. 23, 174 pp. Gonzaelez, H., 1993: Generalized Geologic of the Department of Risaralda; INGEOMINAS, Explanatory Memorandum, 55 pp. Gonzalez, H., 1996: Geologic Map of the Department of Antioquia Mineral Resources and Potential Threats; INGEOMINAS, Explanatory Memorandum, 232 pp. Hall, Robert B., 1973, Geology and Mineral Resources of Central Antioquia and Part of Caldas Department (Zone IIA), Colombia, USGS Open File Report -73-97. Hall, R. B., Feininger,T., Barrero, D., Ricoh, H. y Alvarez, J., 1970, Recursos Minerales de Parte de Antioquia y Caldas. Boletin Geologico, Bogata. 18 (2), 90p.
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Hedenquist, J. W., Sillitoe, R. H. and Arribas, A., 2004, Characteristics of and exploration for high sulfidation epithermal gold-copper deposits. In: Cooke, D. R., Deyell, C., and Pongratz, J., 24ct Au Workshop. Tasmania Centre for Ore Deposit Research (CODES) Special Publication 5, p.99-110. Laskowski, K.A. 2010, Summary of Surface Rock Sampling and Drilling Results at Guayabales, Internal company report for Mercer Gold Corporation. Lewis, W. J., 2006, NI 43-101 Technical Report on the Marmato and Caramanta Projects, Departments of Caldas and Antioquia, Republic of Colombia, Report by MICON International Ltd., for Colombia Goldfields, Ltd. Ministerio de Minas y Energia, Colombia, 1999-2006, Annual Reports Mineral Resources Development Inc. (MRDI), (1998), Scoping Study, Marmato gold/Silver Project, Colombia. Report for Conquistador Mines Ltd., October 1998, 184 p. Orrego, A., and Paris, G., 1991: Geology, Geochemistry, and Mineral Occurrences Quadrangle N-6, Popayan; INGEOMINAS. Moncayo, C., Rosero, G., Villegas, F., Garces, H., 2010, Mercer Gold Corp. Guayabales Project 2010 Annual report December 2010. Perez, G., 1980: Geologic Evolution of the Upper Patia Subbasin, Department of Cauca, Colombia; INGEOMINAS, Geologia Norandina, No. 2, pp 3-11. Pinzon, F. D., and Tassinari, C. C.G., 2003, Ages and Sources of the Gold Mineralization in the Marmato Mining District, NW Colombia: Based on Radiogenic Isotope Evidence. South American Symposium on Isotope Geology. IRD (Institut de Recherche pour le Development) Salvador, Bahia, Brazil, 24-27 August, 2003, p. 758761. Rendon, J. E. Lopez, 1993: Geology , Mineralogy, and Genetic Aspects at La Maruja Mine, Marmato Mining District, Caldas Department, Colombia. (Private Company Report). Restrepo, J. J. and Toussaint, J. F., 1974: Cretaceous Obduction in West Colombia; Universidad Nacional, Anales, Fac. De Minas, Medellin, No. 58, p 73-105. Restrepo, J. J. and Toussaint, J. F., 1975: Radiometric Ages Restrepo, V., 1952, Estudio sobre las minas de oro y plata de Colombia. Ediciones 1885, 1888, 1937 and 1952. Digital copy of 1952 edition on internet at Biblioteca Luis Angel Arango del Banco de la Republica de Colombia Rossetti, P. and Colombo, F., 1999, Adularia-sericite gold deposits of Marmato, Caldas,
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Colombia: field and petrographic data. In: McCaffrey, K. J. W., Longeran, L. and Wilkinson, J. J., editors, Fractures, Fluid Flow and Mineralization. Geological Society, London, Special Publications, 155, p. 167-182. Rubiano, M., 1986, Presencia de Mackinawita, Cubanita II y Melnicovita en los depositos de ore de Marmato, Caldas, Colombia. Geologia Norandina, #10, p. 29-34. Shaw, Robert P., 2000, Gold Mineralisation in the Northern Andes: magmatic setting vs. metallogeny, XI International Mining Congress, Bogot, Colombia, Oct., 2000 Technical Abstracts. Sillitoe, R. H., 2008, Major gold deposits and belts of the North and South American Cordillera: Distribution, tectonomagmatic settings, and metallogenic considerations. Economic Geology, v.103, p. 663-687. Sillitoe, R. H., Jaramillo, L., Damon, P. E., Shafiqullah, M. and Escovar, R., 1982, Setting, Characteristics and Age of the Andean Porphyry Copper Belt in Colombia. Economic Geology, v. 77, p. 1837-1850. Stonehouse, J. M., 2010, A Narrative Description of the Various Sample Techniques Used to Date at Mercer Golds Guayabales Project., Internal Report Mercer Gold Corporation, 3p. Stonehouse, J. M., 2010, Sampling and Chain of Custody Protocol., Internal Report Mercer Gold Corporation, 3p. Tewalt, N.A. and Carrington, R.G., 2006 personal correspondence on the results of surface sampling, and unpublished internal reports and presentation material. Thompson, R. J., 2007 NI 43-101 Guayabales Project Technical Report April,5 2007, Torres, Ivette, 2002, Mineral Industry of Colombia, 2002, USGS Torres, Ivette, 2003, Mineral Industry of Colombia, 2003, USGS Torres, Ivette, 2004, Mineral Industry of Colombia, 2004 USGS Warden, A. J., and Colley, H.. 1990, Field investigation of the Marmato gold deposits of Caldas and Risaralda, Colombia. Transactions, Institute of Mining and Metallurgy, Section B, 99, B52-B54.
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Wilkinson, J. J., editors, Fractures, Fluid Flow and Mineralization. Geological Society, London, Special Publications, 155, p. 167-182. Wilson, S. E., 2010, NI 43-101 Technical Report Medoro Resources LTD., Marmato Project Department of Caldas, Republic of Colombia, March 2010. p269.
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Certificate of Author
Dean D. Turner
Littleton, Colorado USA 80125
I, Dean D. Turner, of Littleton, Colorado, USA, do hereby certify that: I am a graduate of the University of Arizona with a Bachelors degree in Geosciences, and of the Colorado School of Mines with a Masters degree in Mineral Exploration and Mining Geosciences. I have practiced my profession continuously for 30 years since graduation from the University of Arizona in 1980, and have held both exploration and production geological positions. This experience includes exploration for, and development of, precious and base metal mineral deposits in North America, South America, Europe, and Asia, with over 25% of the time spent in the field or at mining operations. I am an American Institute of Professional Geologists (AIPG) Certified Professional Geologist (CPG) in good standing, and my certificate number is 10998. I am a member of the Society of Economic Geologists, the Society of Mining Engineers, and the American Society of Photogrammetry and Remote Sensing. I have read the definition of Qualified Person set out in National Instrument 43-101 and certify that by reason of my education, affiliation with a professional association, registration as a professional geologist and past relevant work experience, I fulfill the requirements of a qualified person for the purposes of NI 43-101. I have read National instrument 43-101 and Form 43-101F1, and the Technical Report has been prepared in compliance with that instrument. I am responsible for the preparation and content of the report titled Guayabales Project Technical Report, Department of Caldas, Republic of Colombia dated 8th February 2011 (the Technical Report). I spent two days at the Guayabales project from April 16-17, 2010, and one day, April 18, 2010 at the core shed in Medellin. Previously, I spent May 12, 2007 touring the Marmato Mining complex, and reviewing the Guayabales property as a consulting geologist for Colombian Mines Corporation (CMC). During the 2007-2009 timeframe, in the capacity of a consulting geologist, I reviewed exploration results on behalf of CMC from time to time. As of the date of this certificate, to the best of my knowledge, information, and belief, this technical report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading. I am independent of the issuer, Mercer Gold Corporation, as well as the underlying vendor, Comunidad Minera Guayabales, as set out in section 1.4 of NI 43-101. Dated this February 10, 2011
Signed: Dean D. Turner Signature of Qualified Person Dean D. Turner, Certified Professional Geologist 10998 (Professional Seal AIPG)
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25.0 DATE AND SIGNATURE PAGE The effective date of this technical report titled Guayabales Project Technical Report, Department of Caldas, Republic of Colombia is February 8, 2011. Dated this February 10, 2011 Signed: Dean D. Turner Signature of Qualified Person Dean D. Turner, Certified Professional Geologist 10998 (Professional Seal AIPG) Name of Qualified Person
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Appendix 1: Dec 21, 2009 Legal Opinion on Guayabales License LH # 0071-17

(Original Spanish Document and English Translation)
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Medelln, December 21stof 2009.
Mr. RAHIM JIVRAJ Mercer Gold Corporation Vancouver- British Columbia Canada.
REF. Report on the legal status of the mining license and procedures, obligations and
costs of the mining-grant contract # LH # 0071-17 Guayabales Mine.
Dear Mr. RAHIM JIVRAJ,
This current evaluation is based upon the content of the file # LH 0071-17, mining-grant contract # LH # 0071-17 of the Mining community of Guayabales which holds the Taxes Identification Number (NIT) # 0810005405-0.
Hereby is shown the following points regarding the evaluation process:
Mining Component : 1. The Mining community of Guayabales, following article 165 from the Norm 685 of 2001(Colombia), On October 10th 2002 started the process of legalizing their Active-mining operations, which did not have a proper mining title subscribed at the National Mining Register, such active-mining operations were taking place in jurisdiction of Marmato municipality in the area of intersection with the route to Echandia and the Alto Los Novios road, located in the following coordinates X: 1098.530 and Y: 1.163.180. 2. This legalizing process of the active-mining operations were properly register at the Colombian mining office under the following code # HHXB01 on March 28th of 2008. 3. Legal concepts and technical feasibility of this project can be found in every single administrative(law) and technical procedures coming from the Gobernacion de Caldas Mining Delegation. 4. At the same time it was verified that there were no current Mining tittles subscribed at National Mining Register on the area in which the Guayabales communitys operation are taking place and its mining legalizing process.
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5. It is stated in the same Mining file that there is a requirement of information, update and accomplishment which was established in the Auto (decree) # 465 of September 2009,this Auto (decree) comes from the duly Mining Authority, in which The Mining community of Guayabales is requested to attach and update all information related to the mining technical operation of the exploitation and to hand out the proper documents in which the payments of the royalty mining reports are stated. 6. In the same Mining file was established that the answer to the requirements of the Mining Authority, was given properly by the Mining Community of Guayabales by a legal document under register Number 24833 of November 24th of 2009, at current report this document is being evaluated by the duly Authority. Environmental Component : 1.CORPOCALDAS, which is the regional environmental authority, reported to the Caldas Mining Delegation, its acceptance and approval to the mining activities carried out by the Community of Guayabales, when consulted about such activities. 2. At current report, the water-granting supply of the Community of Guayabales which provides the water for the mineral process and exploitation is still awaiting to be updated, therefore the documents consulted for this report allows to conclude that the Community of Guayabales fulfil the minimum requirements in Environmental aspects. Due to the previous analyze it is possible to conclude that the Mining Community of Guayabales holds a clear, express and demandable right over the mining exploitation site registered under file # LH 0071-17 and registered under # HHXB-01 of March 28th of 2008. Note: As a personal opinion and perception I consider prudent to mention that there is an unusual movement of interest around the Mining property of the Community of Guayabales, this doesnt mean there is any kind of risk for the property, however continuous oversight measures must be taken. Sincerely,
ALEXANDER RESTREPO QUICENO. Abogado especialista en derecho Pblico. Tarjeta Profesional No 89.805 del C. S. J
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Appendix 2: Feb 8, 2011 Legal Opinion on Guayabales License LH # 0071-17
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Appendix 3: Mining Law 1382 of Colombia

LAW NUMBER 1382 OF FEBRUARY 9, 2010 BY WHICH LAW NUMBER 685 OF YEAR 2001 ON CODE OF MINING IS MODIFIED THE CONGRESS OF COLOMBIA DECREES: ARTICLE 1: The following paragraphs are assigned to Article number 16 of Law number 685 of year 2001 of the Code of Mining: FIRST PARAGRAPH: All applicants for concession contract proposals should state whether the geographical area that has been requested shows any kind of mining exploitation, also indicating its location and the methodology that has being applied, in order to know about the existence of such mining project. The Mining Authorities are expected to certify the type of mining project existing in the area of study before a maximum delay that should not exceed three (3) months. In case traditional mining is present in the area, Articles number 31 and 248, and other applicable dispositions established by the Code of Mining, should be applied, and if no Article can be applied, the competent authorities from the Executive and Judiciary powers should be informed in order to carry out all administrative and penal actions that are in accordance with Articles 159 and 164 of the Code of Mining, as well as any other applicable dispositions from the Penal Code. If the concession contract applicant does not inform about the existence of previous mining projects, a rejection of the application should take place, or a fine should be imposed if a concession contract has already been entered, in case the Mining Authorities find that there exists previous mining projects and that the concessionaire has not proceeded according to Articles 306 and 307, and subsequent articles from the Code of Mining. In case traditional mining is present in the area, and the existence of such traditional mining activities has bee proven by the Mining Authorities, and in case the existence of such traditional mining has not been informed by the applicant, being a mining project under development, in accordance with a concession contract, said contract shall be suspended for a time of six months in the area in question, and the parties shall have to enter additional agreements. In case no agreement is reached, the technical arbitration mechanism shall be applied pursuant to Article 294 of this Code, whose additional costs shall be paid by the parties. The Arbitration Tribunal shall define the most appropriate agreement that should be liable and binding for the parties. Traditional Mining is understood as the one carried out by people and groups of people or communities that exploit mines that belong to the State, and that do not hold any type of
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title registered before the National Mining Registry, as far as they can certify that their mining works have taken place in a continuous way during the last five (5) years, supported upon commercial and technical documents, and existence for at least ten (10) years before the validity of this law. SECOND PARAGRAPH: The maximum time available for Mining Authorities in order to decide on a concession contract application shall be equal to one hundred and eighty (180) calendar days, considered as the time assigned to Mining Authorities. Breach to this liability shall be considered as a neglectful behavior of the responsible officer. SECOND ARTICLE: The following sections are assigned to Article number 31 of Law number 685 of year 2001 of the Code of Mining: The Mining Authorities are entitled to define other free special areas in which, according to geological information available, it is possible to begin a mining project of great importance for the country. The objective is to assign such areas during public bids, through processes of objective selection, according to the best technical, economic, social and environmental conditions, in order to take advantage of the resources. These processes shall determine the level of economic compensations that should take place, as well as the royalties that are established by the law, which should be paid by the applicants. All areas that are not assigned before three (3) years from the date of definition of the special area shall be subject to be assigned in accordance with the regime that is regulated by this Code. The Mining Authorities shall determine the general process, as well as the conditions and requirements that should be fulfilled in order to assign the mining exploitation in each case. The Mining Authorities shall use broadcasted and written mass media in order to inform all interested parties about the mining bids that are opened in order to apply, according to this article. INGEOMINAS, the Geological Mining Authority, shall be entitled to define the special areas that are free, that shall not be assigned or received along with mining titles, and that shall remain subject to any existing concession, in order to carry out the processes that are necessary and assign such areas for up to five (5) years in favor of all those that offer the best geological and technical evaluation of the area, according to the terms and conditions established by the Mining Authorities. All those that are benefited by granting a Technical Evaluation contract shall, upon termination of said contract, benefit from the right to have the first chance to enter a new contract with the Mining Authorities for the area that is subject of the contract and in accordance with the conditions established by this Code. None of the companies that have been previously accused of breach of the original contract, and for which breach has been declared by the Mining Authority, shall be in capacity to compete for mining contracts mentioned in this Article.
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The definition of areas that is mentioned in this Article shall be previously regulated by the Mining Authorities. THIRD ARTICLE: Article number 34 of Law number 685 of year 2001 shall remain as follows: ARTICLE THIRTY-FOUR: Zones subject to exclusion from mining projects. No mining projects or mining exploitations shall be carried out in zones declared and defined according to the valid regulations as protection and development areas in favor of renewable and environmental natural resources. The excluded zones shall include all those that have been declared as such, as well as all those that shall be declared as such pursuant to the valid regulations, and those that are declared as to make part of the system of national natural parks, regional natural parks, protection forest reserves, and other forest reserves, high plateau ecosystems, and marshes pursuant to the list of international importance of the Ramsar Convention. These areas, to be considered as such, shall be geographically defined by environmental authorities on the basis of technical, social and environmental studies. High plateau ecosystems are to be identified in accordance with the cartographic information that is supplied by the Alexander von Humboldt Research Institute. Nevertheless, all forest reserve areas declared pursuant to Law number 2 of year 1959, and other regional forest reserve areas shall be subject to be removed from their condition as such by the environmental competent authority. The Mining Authority, by the time of grating the mining title, shall inform the concessionaire if the area of exploitation is considered as a forest reserve, and the concessionaire shall not be entitled to begin any mining activity whatsoever until the moment when the Environmental Authority has removed the area from the list of natural forest reserve areas. In order to achieve the remotion of the area from the list of natural forest reserve areas, the concessionaire shall have to carry out and present appropriate studies in order to prove the possibility of coexistence between the mining activity and the objectives of the forest reserve area. Once the remotion of the area has been successfully carried out, the Mining Authority, in accordance with the environmental regulations, shall determine the conditions that will regulate the exploration and exploitation activities that should be developed according to the restrictions, or according to a specific set of methods and systems, in such a way that it does not negatively affect the objectives of the portion of the natural forest reserve area that has not been removed. The Ministry of Environment, Housing and Territorial Development shall determine the requirements and the procedures that are necessary in order to remove the areas according to the previous paragraph. Likewise, it shall determine the conditions under which a temporary remotion shall take place during exploration activities.
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FIRST PARAGRAPH: If by the time this Law comes into force a certain construction, assembly, or mining exploitation is taking place on the basis of a mining title and an environmental license, or their equivalent, in areas that had not been previously excluded as forest reserve, then such activities shall continue according to the terms that had been agreed, but shall not be subject to any type of extension. SECOND PARAGRAPH: The Ministry of Environment, Housing and Territorial Development, once this Law comes into force, shall, in a term of five (5) years, redefine the zones to be considered as forest reserves according to Law number 2 of year 1959, determining those that are protective and those that are not, and allowing the participation of the Mining Authorities and other parties interested in the process. THIRD PARAGRAPH: The declaration of zones of exclusion according to this Article shall require a previous concept non liable to be issued by the Minister of Mining and Energy. FOURTH ARTICLE: Article number 38 of Law number 685 of year 2001 shall be added with the following sections: The Ministry of Mining and Energy shall be in charge of developing, before the first three (3) years that follow to the date when this Law comes into force, the National Mining Order Plan. The making of such plan and its adoption shall keep in mind the regulations, determinations, and directions that have been established according to environmental matters and territorial order, all issued by the Ministry of Environment, Housing and Territorial Development. The National Mining Order Plan shall be coordinated along with the Ministry of Environment, Housing and Territorial Development, given the environmental effects, the population, and the possibilities linked to the exploitation of soils. In any case the National Mining Order Plan shall include a strategic environmental analysis of the territory. FIFTH ARTICLE: Article number 74 of Law number 685 of year 2001 shall be added with the following paragraph: PARAGRAPH: In case an extension for longer than what has been determined by this Article is necessary, the concessionaire shall be entitled to continue its explorations by means of requesting additional extensions for two (2) years each, for up to eleven (11) years, for which it shall be necessary to present technical reasons and economic perspectives, demonstrate exploration works already carried out, demonstrate the fulfillment of Mining and Environmental Guidelines, describe the works to be executed, specify the duration of the works, describe the investments to be made, and make the corresponding payment based on the surface fee of the exploration.
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SIXTH ARTICLE: Article number 77 of Law number 685 of year 2001, Code of Mining, shall be modified as follows: ARTICLE SEVENTY-SEVEN. CONTRACT EXTENSION AND RENEWAL: The concessionaire shall be entitled to request the extension of a contract for up to twenty (20) years only if such request is made at least two (2) years before the termination of the period of exploitation, and if the concessionaire is free of any debt. The acceptance of the extension is no automatic and shall be accompanied by new technical, economic, environmental and social studies that should explain the current situation of the resources. In order to do this, the concessionaire shall have to negotiate the terms of the extension, and shall be subject to agree forms of payment different from royalties, but in any case the extension shall only be granted if it is proven that it is beneficial for the State. The extension shall be notarized by means of issuing a Deed undersigned by the two parties, and said Deed shall be inscribed in the Mining Registry. SEVENTH ARTICLE: Article number 84 of Law number 685 of year 2001, Code of Mining, shall be added along with the following paragraph: PARAGRAPH: The Ministry of Mining shall be in charge of designing a special form in order to guide the making of work programs (PTO) for the emerald sector, given the fact that these minerals are not subject to quantifications similar to those applied to other minerals. EIGHTH ARTICLE: Article number 101 of Law number 685 of year 2001, Code of Mining, shall be as follows: INTEGRATION OF AREAS: In case various areas of exploitation belong to various titles of ownership and belong to one or various beneficiaries for the same mineral to be exploited, and such areas are next to each other or are neighbors, even if they are not next to each other, but belong to the same mineral source, they can be included in only one program of exploration and exploitation in order to carry out the works that are necessary in such areas, in a simultaneous or alternative way, according to unified objectives and levels of production, all of them unified in only one contract. In order to do so, the interested parties should present before the Mining Authorities the program mentioned above, in order to be approved. The interested parties shall be responsible for such program. The unified contract shall guarantee, on the one hand, that the payments that have been demanded for the titles that have been integrated can be effectively made, and, on the other hand, it shall establish the mechanisms that are necessary in order to allow appropriate control over the exploitations, in order to ensure the appropriate distribution of the economic benefits among the beneficiaries. The regime to be applied to the integrated contract shall be the one that should be attributed according to what is established by Title VIII, Chapter XXXII, of this Code,
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implying that in case the integration includes contracts from the Contribution Regime, all conditions for the contracts shall be kept, as well as the payments that have been agreed, in addition to the royalties according to the law. In case of integration of contracts from different types of regime, or in case such contracts imply differences in relation to their liabilities, different from the environmental and economic payments, only the liabilities the most favorable for the State shall be kept. The result of the integration of areas shall imply a modification of the environmental license that has been granted, or the application for a new environmental license for the project before the corresponding environmental authorities, for which a previous permission should be granted. No integration of areas shall take place at all in case such integration implies the negative affection of the royalties expected for two (2) or more municipalities that are beneficiary from such royalties, during the next ten (10) years after the integration. The duration of the new contract shall be determined on the basis of the term that has passed since the most ancient contract, and the term can be extended in accordance with Article 77 of this Code. In any case the Mining Authorities shall be entitled to approve or disapprove the integration on the basis of a 'motivated resolution'. NINTH ARTICLE: The following section is added to Article number 112 of Law number 685 of year 2001, Code of Mining, as follows: k) In case companies or individuals that exercise the mining activity hire people under the age of 18 in order to carry out mining jobs including open pit or underground activities. NINTH ARTICLE: Article number 116 of Law number 685 of year 2001, Code of Mining, is modified as follows: TEMPORARY AUTHORIZATION: All public entities, territorial entities, companies, and contractors that are willing to carry out the construction, reparation, maintenance, or improvement of a national, departmental, or municipal public way, or the making of a big infrastructural project declared as to be of national interest by the National Government, they will be able to, according to environmental regulations, request before the Mining Authorities a temporary and non transferable authorization in order to extract from neighboring rural properties to the place of works, any building materials that are exclusively necessary for the works, on the basis of the certificate issued by the entity for which the works are carried out, and specifying the lenght of the track for the way, the characteristics of the works, the duration of the works, and the maximum quantity of resources that should be used.
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This authorization shall be granted before a maximum term of thirty (30) days, not subject to extension, or shall be considered as granted in case no answer is given at all after such deadline. Temporary authorizations shall be granted for a maximum of three (3) years, subject to only one equal extension, counting from the date of granting of authorization. The competent Mining Authorities shall make the follow up of the activities carried out during the execution of the works according to the issuance of a temporary authorization. Any breach according to the conditions established in the report of activities, or the liabilities that have been imposed during the administrative action at the moment of granting the right in favor of the beneficiary of the temporary authorization, shall be sufficient to revoke said temporary authorization, without prejudice against the eventual impositions of fines according to Article 115 of this Code. No area holding a mining title for exploitation of construction materials is subject to the issuance of a temporary authorization; nevertheless, the beneficiaries of the exploitation of these areas should supply with their construction materials according to local market prices. In case no agreement is reached in relation to the price that should be paid, a technical arbitration shall take place along with the corresponding Chamber of Commerce, in order to define the price to be paid. In case the concessionaire does not supply the construction materials, the exploitation shall be carried out by the party that requests the issuance of the temporary authorization, and, in that case, the arbitration shall also define the zones that are compatible in order to carry out new exploitations. In respect of the payment and the right to entry to the zone, the Chapter on Servitudes that makes part of this Code shall be applied. In case the concessionaire carries out the exploration stage, subject to the environmental regulations, it shall be entitled to request before the Mining Authorities the authorization in order to begin the construction, assembly, and exploitation in accordance with this Code. In case the zone that is subject to a temporary authorization is the same that has already been considered for the making of an exploitation, without including construction materials, the temporary authorization shall be granted, but, once said authorization expires, the area shall continue making part of the proposal or the contract to which it had already been assigned. In case the holder of a mining right authorizes so, the Mining Authorities shall be entitled to grant a temporary authorization to another beneficiary. In this case each beneficiary shall be responsible for the mining works that are carried out, as well as for the fulfillment of the valid environmental regulations.
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All conditions imposed by Articles 117, 118, 119, 120, and 332, of Law number 685 of year 2001, are applicable to infrastructure works according to section one of this Article; as well as all previsions contained by Article 41, and all others derivative from private property rights, that are also applicable. ELEVENTH ARTICLE: Article number 187 of Law number 685 of year 2001, Code of Mining, is modified as follows: NECESSITY OF THE GOODS: The indispensable character of certain properties that are subject to expropriation, as well as the right over such properties, including possession, shall determine the basis for the Program of Works and Investments, according to the Program of Works and the Study of Feasibility, according to the particular requirements, all of them approved by the Mining Authorities, along with their respective changes. In case of contracts according to regimes that do not demand the approval of this type of documents, the mere presentation of the mining plant shall be sufficient. The Ministry of Mining and Energy shall, if considered necessary, before the first ten (10) days that follow to the presentation of the request, by means of decision to be informed personally to the owner of the property, order the making of an administrative inspection to be paid by the interested mining concessionaire, and shall make a definite decision before the twenty (20) following days. PARAGRAPH: This procedure shall take place upon previous technical evaluation of the property and the possession, to be made by real estate experts from the real estate office, in order to calculate the corresponding payment to be made in favor of the owner of the property that shall be expropriated. TWELFTH ARTICLE: LEGALIZATION: All mining exploiters, groups, and traditional mining associations that exploit mines that belong to the State without a valid title inscribed before the National Mining Registry, shall be subject to request, before a maximum term of two (2) years, not subject to extension, counting from the date of issuance of this law, that the mine or mines that they exploit be granted to them, upon fulfillment of all the formal and fundamental requirements, as far as the area that is being requested is free for contract, and as far as the mining works can be accredited as to have been made in a continuous way since before the validity of Law 685 of year 2001. In case the area that has been requested has already been assigned to another concessionaire, and as far as the group or association that requests the area demonstrates to have settled in such area for longuer that the time of granting in favor of the new concessionaire, this information shall be verified in accordance with the conditions established for the fulfillment of the liabilities of the mining concessionaire, and, if there are sufficient grounds to declare expiration, the most ancient occupation shall be considered as the first option for the legalization request dully fulfilled, once the contract expires.
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In case the concessionaire is free of any debt in relation to its economic liabilities, the Mining Authority shall mediate between the parties in order to foster an agreement such as the entering of an Association and Operation Contract, dully inscribed before the National Mining Registry, according to Article 221 of this Code, among others, in order to allow the exploitation to be made by the two groups or associations. The making of these agreements shall take place before a maximum term of six (6) months counting from the date of official request made by the traditional mining entity. In case the area of exploitation is not free from a previous contract proposal, and a legalization request arises in accordance with the terms established by this article, the proposal shall continue its process, and, in case it becomes an actual mining contract, the Mining Authorities shall proceed in accordance with the terms established in the third section of this Article. In case the proposal for contract is rejected, it shall be the first option in order to continue the process and the request for legalization. FIRST PARAGRAPH: In any case the Mining Authorities shall count on a maximum term of one (1) year in order to carry out the visit, upon presentation of the legalization request, in order to give response to the application; and shall count on a maximum term of two (2) months, counting from the moment of reception of the Program of Works and Installations (PTO) and the Environmental Managing Plan (PMA) from the interested party, in order to make a fundamental decision in relation to the legalization application. As far as the Mining Authorities does not make any decision in relation to the legalization, according to this Article, no action in accordance with Articles 161 and 306 shall be carried out by the interested party, and no penal actions according to Articles 156 and 160 of this Code. In case of legalizations according to this Article, all evaluation, visits, and granting in favor of the concessionaire shall be carried out free of charge by the Mining Authorities, which shall be in charge of using the resources that are necessary in order to carry out such activities. Nevertheless, PTO and PMA studies required for the execution of the contract shall be paid by the applicants. SECOND PARAGRAPH: Any activity related to the extraction of materials of dragging shall be considered as legal as far as they are carried out without using mechanical tools and as far as the amount of extraction does not exceed a maximum volume of 10 cubic meters per day, for each area equal to 200 meters of length. THIRTEENTH ARTICLE: Article number 205 of Law number 685 of year 2001, Code of Mining, is modified as follows: ENVIRONMENTAL LICENSE: On the basis of the Environmental Impact Study, the competent authorities shall decide whether or not to grant the corresponding Environmental License for construction, assembly, and exploration when the construction of ways is required, all of them including the issuance of environmental licenses, the
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exploitation according to the subject of the contract, the benefits, and all additional exploration works according to the stage of exploitation. The environmental authorities shall be entitled to ground their decision on the basis of an Environmental Impact Study issued by an external auditor in accordance with Article 216 of this Code. FOURTEENTH ARTICLE: Article number 206 of Law number 685 of year 2001, Code of Mining, is modified as follows: ENVIRONMENTAL REQUIREMENT: For all early exploitation works, the interested party shall have to obtain an Environmental License which shall then be presented before the Environmental Authority in order to be modified in accordance with the actual exploitation works and in accordance with the legal requirements. FIFTEENTH ARTICLE: Article number 212 of Law number 685 of year 2001, Code of Mining, is modified as follows: JOINT STUDIES AND LICENSES: The beneficiaries of neighboring areas either included or not in the joint exploration and exploitation plan, shall be entitled to carry out the Environmental Impact Study that is ordered by this Code, if they prefer to do so, for infrastructure, assembly exploitation works in such areas, both of them if necessary. In case the conditions and characteristics of both areas are homogeneous and similar, the two concessionaires shall be entitled to demand a Joint Environmental License. The environmental procedures that include the License shall include similar measures in accordance with the concrete location of the area to be granted. In this case the beneficiaries shall be subject to give a common response in accordance with the fulfillment of the liabilities that are established by the license. SIXTEENTH ARTICLE: Article number 230 of Law number 685 of year 2001, Code of Mining, is modified as follows: REGULATION ON SURFACE FEES: The regulations on surface fee that apply to the total area of exploitation during the time of exploration, assembly and construction, or the total surface fee that the contractor uses in order to explore during the period of exploitation, are compatible with the royalties and constitute a payment that shall be paid by the contracting entity without consideration of those who own the property and the lands where the project takes place. The payment shall be equivalent to a minimum legal wage per legal valid day (SMDLV), for each hectare per year, from the first to the fifth year; and from then, the payment shall increase every two (2) additional years as follows: for years number 6 and 7 the payment shall be equal to 1.25 minimum legal wage per legal valid day for each hectare per year; and for year number 8 the payment shall be equal to 1.50 minimum legal wage per legal valid day for each hectare per year. This payment shall be made in advance per year. The first year should be paid before the first three (3) days from the moment when the Mining Authority, by means of an administrative action, determines that the area is free and subject to contract.
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For any additional construction, assembly and exploration activities, the same payment than for the exploration shall be made. FIRST PARAGRAPH: The non accreditation of the payment for surface fee shall be considered as a reason to deny the proposal, as well as the declaration of expiration of the contract, depending on the situation. The Authority shall only be entitled to manage the money that it receives on the basis of payments for surface fee after entering the exploitation contract. The amount paid shall only be reimbursed in favor of the applicant in case of rejection due to total or partial superposition of areas. In such case the amount shall be reimbursed before the first five (5) business days that follow to the administrative decision, and the reimbursement shall be pro rata according to the area in case a reduction of the total surface fee is decided. Likewise, a reimbursement shall take place in case the environmental authority denies permission for subtraction in a forest reserve area for exploration. SECOND PARAGRAPH: Any proposals made at the date of validity of this law, and all those that are in process, and all those mining titles that have not paid the amount due according to the surface fee for the first year, should demonstrate the making of said payment during the first three (3) months that follow to the issuance of this Law, being subject to rejection and expiration, according to the case, if they do not. SEVENTEENTH ARTICLE: Section number 1 of Article number 270 of Law number 685 of year 2001, Code of Mining, is modified as follows: PRESENTATION OF THE PROPOSAL: The contract proposal should be personally presented either by the interested party or its attorney, before the office of the Mining Authorities that is competent according to the jurisdiction of the area in the proposal. EIGHTEENTH ARTICLE: Article number 271 of Law number 685 of year 2001, Code of Mining, is added along with the following sections: h) A technical attachment shall describe the exploration works which should be equal or superior to the minimum that have been defined by the Ministry of Mining and Energy, according to the area and the characteristics of the mining project. i) In case of projects of more than one hundred fifty (150) hectares, the demonstration of the economic capacity of the interested party in order to carry out the mining project shall be in accordance with the parameters established by the Ministry of Mining and Energy, which should be in proportion to the area that is requested. NINETEENTH ARTICLE: Article number 273 of Law number 685 of year 2001, Code of Mining, is modified as follows:
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OBJECTIONS AGAINST PROPOSALS: All proposals shall be subject to be corrected or amended, only one time, by the applicant, and upon order issued by the Mining Authorities, in accordance with those cases that are not included in the list of grounds for rejection according to Article 274 of this Code. The term established for the making of corrections or amendments to a proposal shall be of thirty (30) days and the Mining Authorities shall count on a term of thirty (30) days in order to make a final decision. TWENTIETH ARTICLE: Article number 274 of Law number 685 of year 2001, Code of Mining, is modified as follows: REJECTION OF A PROPOSAL: A proposal shall be rejected in the following cases: 1. In case the total area demanded is located in places and zones mentioned in Article 34 of this Code, and as far as no authorizations or concepts have been obtained in accordance with the legal conditions. 2. In case the area of the proposal is in totally superposition in respect of other proposals or previous contracts. 3. In case the proposal does not fulfill all the requirements that have been established by Article 271 of this Code. 4. In case the proposal does not fulfill the condition of correcting any deficiencies in the proposal. 5. In case the payment for the first year according to surface fee is not dully certified as to have been made. TWENTY-FIRST ARTICLE: Article number 280 of Law number 685 of year 2001, Code of Mining, is added as follows: PARAGRAPH: In case of difficulties for the constitution of a police, said police shall be subject to be substituted by a real warranty, either personal or in favor of third parties, as fare as they ensure the fulfillment of the mining and environmental liabilities, the payment of fines, and the expiration. The National Government shall be entitled to issue regulations about other types of warranties. TWENTY-SECOND ARTICLE: Article number 285 of Law number 685 of year 2001, Code of Mining, is modified as follows: ADMINISTRATIVE PROCEDURES TO BE APPLIED FOR SERVITUDES: The use of servitudes shall be preceded by a formal announcement addressed to the owner or the tenant of the property, which should be issued through the Major. The Major shall be in charge of making the personal notification, or the public sign that should be fixed in a public and visible place during three (3) days, including a certificate of such action in the Secretary of the City Hall. Once this announcement has been successfully published, in case no agreement is reached by the parties the following procedure should be applied:
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For the use of mining servitudes the Major shall order the hiring of an expert who shall be appointed by the Agustin Codazzi Geographical Institute, or by the local Real Estate Office, in order to make an estimation before a total term of thirty (30) days, including the amount of compensation to be made for the prejudices that might take place. After the issuance of this estimation, the Major should accept it by means of issuing an official decision that should take place before the first five (5) days that follow to the date of the estimation. The price of the estimation made by the expert shall be paid by the mining contractor. In case the owner or the tenant of the servitudes, or the mining contractor, requests before the Major the issuance of a mining caution, the Major shall fix said caution by means of issuing the same decision, including an amount equivalent to the total compensation. This caution shall be governed in accordance with the Code of Civil Procedures, and in particular Articles 678 and 679, and their devolution shall take place in accordance to a maximum term of thirty (30) days. The decision made by the Major shall be subject to appeal before the Governor and shall only granted if the interested party certifies the existence of the caution or the payment of the compensation. Once the total amount of the caution or the compensation has been defined, it shall be subject to be revised by a corresponding judge from the place where the servitudes are located, upon request of any of the interested parties, by means of an abbreviated process in accordance with Article 408, and subsequent ones, of the Code of Civil Procedures, and in accordance with the general regulations related to this type of procedure in the same Code. Once the caution has been made or the compensation has been paid, the mining entity shall, with the assistance of the Major if necessary, enter the servitudes and occupy the zones that are necessary for the works. The agreement between the parties or the decision of the Major should be registered in the corresponding local Office of Public Deeds. TWENTY-THIRD ARTICLE: Article number 325 of Law number 685 of year 2001, Code of Mining, is added with the following sections: The Mining Authorities shall demand the payment of audit and follow up services in favor of mining titles. Any payments that are supposed to be made because of the collection of the amounts quoted above, collected by the Mining Authorities, shall be deposited in the special account that the Mining Authorities will have created for such end, which shall be called the Mining Audit Fund. The amount to be collected shall be calculated in accordance with the parameters that are established by section number two of this Article. The amount shall include the price of the professional fees required for the making of the activities that have been proposed,
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the total price of travel allowances, and any other professional expenses linked to the follow up of the mining titles. The Mining Authorities shall supply audit and follow up services in favor of the mining titles that have been mentioned in this Article and this activity shall be carried out by the officers and contractors of the Mining Authorities. TWENTY-FOURTH ARTICLE: Article number 332 of Law number 685 of year 2001, Code of Mining, is added with the following section: j) Special reserves mentioned in Article 31 of this Code. TWENTY-FIFTH ARTICLE: Article number 334 of Law number 685 of year 2001, Code of Mining, is added with the following section: All areas that have been subject to a mining title or a mining application, and that for any reason whatsoever are left free, shall only be subject to a new mining title or mining application thirty (30) years after the validity of all definite administrative acts that determine their situation. All administrative acts mentioned in this Article should be published in the electronic web site of the Mining Authorities, or in any other site that replaces it, during the first five (5) days after their execution. This time should be used in order to inscribe said administrative acts in the Mining Registry. TWENTY-SIXTH ARTICLE: SPECIAL MINING DISTRICTS: The Ministry of Mining and Energy shall define, along with the participation of regional and local entrepreneurial, social, governmental and other administrative actors involved, the mining processes and the mining strategies for the national territory, which shall be called Special Mining Districts, in order to facilitate the relation that exists among the State, the Society and the Territory, and contribute to the participation and planning activities in a context of sustainable human development and equilibrium, improving the competitiveness of the territory. The Mining Authorities shall guarantee the articulation of these strategies applied to Special Mining Districts and the National Competitiveness System. All aspect in Articles 248, 249, 250, 255, and 257 of Law number 685 of year 2001 shall be considered as plans, programs and projects of Competitiveness and Sustainable Human Development proposed for the Mining Special Districts of the country. PARAGRAPH: The Mining Authorities shall define the Mining Districts in accordance with geological, mining, social and economic conditions. TWENTY-SEVENTH ARTICLE: Law number 685 of year 2001, Code of Mining, is added with the following Article:
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SOCIAL ENTREPRENEURIAL RESPONSIBILITY: All mining companies shall promote and carry out social responsibility activities, in accordance with the frame of sustainable human development, in order to promote voluntary behaviors, socially responsible, based on the design, the development, and the execution of policies, plans, programs, and projects that allow the achievement of social objectives such as the improvement of the quality of life of the population and the prevention and reparation of environmental damages in the regions, the subregions, and the zones of influence. TWENTY-EIGHTH ARTICLE: The legal dispositions of the Law do not modify nor render invalid the warranties nor the rights that have been instituted by Law number 70 of year 1993, nor the Code of Mining in favor of ethnic groups (black and indigenous communities), and their mining areas. TWENTY-NINTH ARTICLE: The Mining Authorities shall be responsible for the regulation of Article 254 on regional manpower, in accordance with Law number 685 of year 2001, in a maximum term not exceeding six (6) months from the date of promulgation of this Law. THIRTIETH ARTICLE: In Departments mentioned in Article 309 of the National Constitution and in Choco, where there exists a small mining activity that works upon the use of small dredgers of up to 60 horsepower, the State shall guarantee special protection in order to guarantee the continuity of such activities, and shall have a maximum term of two (2) years from the date when this Law comes into force, in order to legalize said activity. THIRTY-FIRST ARTICLE - VALIDITY: This Law governs and comes into force from the date of its publication and it revokes Articles number 190, 191, 203, 211, 213, 215, 282, 292, 298, and 316 of Law number 685 of year 2001, Code of Mining. THE PRESIDENT OF THE SENATE OF THE REPUBLIC SIGNATURE HERNAN FRANCISCO ANDRADE SERRANO THE GENERAL SECRETARY OF THE SENATE OF THE REPUBLIC SIGNATURE EMILIO OTERO DAJUD THE PRESIDENT OF THE CHAMBER OF REPRESENTATIVES SIGNATURE GERMAN VARON COTRINIO THE GENERAL SECRETARY OF THE CHAMBER OF REPRESENTATIVES SIGNATURE JESUS ALFONSO RODRIGUEZ CAMARGO
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Appendix 4. CMC Drill Core Assays

Drill Hole GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 Sample Number NULL A004601 A004602 A004603 A004604 A004605 A004606 A004607 A004608 A004609 A004610 A004611 A004612 A004613 A004614 A004615 A004616 A004617 A004618 A004619 A004620 A004621 A004622 A004623 A004624 A004625 A004626 A004627 A004629 A004630 A004631 A004632 A004633 A004634 A004635 A004636 From (m) 0.00 2.05 3.00 4.65 6.15 7.65 9.10 10.55 12.60 14.70 15.55 17.65 19.80 20.30 21.10 22.20 23.30 24.20 25.85 27.00 28.40 29.75 30.55 31.95 33.75 35.20 36.95 37.90 39.95 42.00 44.05 45.20 47.00 48.80 50.75 52.10 To (m) 2.05 3.00 4.65 6.15 7.65 9.10 10.55 12.60 14.70 15.55 17.65 19.80 20.30 21.10 22.20 23.30 24.20 25.85 27.00 28.40 29.75 30.55 31.95 33.75 35.20 36.95 37.90 39.95 42.00 44.05 45.20 47.00 48.80 50.75 52.10 53.70 Length (m) 2.05 0.95 1.65 1.50 1.50 1.45 1.45 2.05 2.10 0.85 2.10 2.15 0.50 0.80 1.10 1.10 0.90 1.65 1.15 1.40 1.35 0.80 1.40 1.80 1.45 1.75 0.95 2.05 2.05 2.05 1.15 1.80 1.80 1.95 1.35 1.60 Au (ppm) 0.000 0.005 0.039 0.012 0.050 0.053 0.006 0.015 0.015 0.125 1.224 0.270 25.260 0.513 0.210 0.269 0.842 0.140 0.061 0.038 0.197 0.099 0.102 0.102 1.399 0.096 0.260 0.056 0.078 0.048 0.854 0.069 0.055 0.018 0.017 0.016 Ag (ppm) 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.3 9.3 12.6 6.7 78.4 14.1 10.4 10.7 19.5 4.5 3.0 0.3 1.3 3.5 5.9 2.3 27.1 8.4 4.6 0.5 2.4 2.5 8.8 2.5 0.1 0.3 0.1 0.9 Cu (ppm) 0.0 6.4 8.2 5.8 7.1 14.7 48.8 65.2 52.8 92.7 117.2 76.1 600.4 178.3 307.7 291.2 478.7 259.4 350.7 61.9 76.1 178.4 189.2 253.6 543.2 578.0 1393.6 325.7 240.0 353.0 650.7 366.2 131.4 190.9 144.4 355.7 Pb (ppm) 0.0 5.0 12.0 4.0 2.0 3.0 8.0 19.0 32.0 132.0 179.0 121.0 7256.0 167.0 40.0 55.0 226.0 38.0 8.0 12.0 14.0 15.0 30.0 7.0 2031.0 14.0 1.0 1.0 5.0 5.0 294.0 12.0 3.0 1.0 1.0 6.0 Zn (ppm) 0.0 91.1 139.5 104.1 93.0 92.4 177.7 116.4 203.4 454.3 757.7 1075.6 2428.9 633.5 102.7 66.8 179.4 111.9 63.2 38.1 31.8 52.8 51.2 43.5 1241.7 97.9 140.8 36.0 43.2 50.5 444.7 64.3 35.3 55.9 59.9 43.5
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Drill Hole GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01 GDH01
Sample Number A004637 A004638 A004639 A004640 A004642 A004643 A004644 A004645 A004646 A004647 A004648 A004649 A004650 A004651 A004652 A004653 A004654 A004655 A004656 A004657 A004658 A004659 A004660 A004662 A004663 A004664 A004665 A004666 A004667 A004668 A004669 A004670 A004671 A004673 A004674 A004675 A004676 A004677
From (m) 53.70 54.80 56.40 58.00 59.60 61.30 63.00 64.70 65.85 67.60 69.40 70.10 71.65 73.20 74.65 76.20 77.50 78.70 79.60 81.70 83.80 85.65 86.30 87.70 88.95 90.05 91.30 92.20 93.65 95.05 96.30 97.10 98.80 100.50 101.50 103.00 105.00 106.70
To (m) 54.80 56.40 58.00 59.60 61.30 63.00 64.70 65.85 67.60 69.40 70.10 71.65 73.20 74.65 76.20 77.50 78.70 79.60 81.70 83.80 85.65 86.30 87.70 88.95 90.05 91.30 92.20 93.65 95.05 96.30 97.10 98.80 100.50 101.50 103.00 105.00 106.70 108.75
Length (m) 1.10 1.60 1.60 1.60 1.70 1.70 1.70 1.15 1.75 1.80 0.70 1.55 1.55 1.45 1.55 1.30 1.20 0.90 2.10 2.10 1.85 0.65 1.40 1.25 1.10 1.25 0.90 1.45 1.40 1.25 0.80 1.70 1.70 1.00 1.50 2.00 1.70 2.05
Au (ppm) 0.025 0.044 0.040 0.047 0.021 0.027 0.040 0.105 0.034 0.028 0.048 0.025 0.032 0.081 1.130 0.084 0.229 5.400 0.189 0.156 0.067 2.887 0.088 0.062 0.109 0.084 0.129 0.094 0.185 0.024 0.011 0.038 0.066 0.689 0.050 0.047 0.061 0.105
Ag (ppm) 0.1 3.2 0.9 1.2 0.6 0.3 0.4 7.1 0.5 2.6 0.6 1.4 4.0 3.9 22.9 8.9 11.0 109.0 8.5 14.4 1.5 12.6 1.5 1.5 3.6 1.6 1.1 1.2 0.9 0.6 0.3 0.8 11.2 39.8 1.4 2.1 1.8 2.5
Cu (ppm) 217.1 403.2 391.8 454.9 233.0 191.9 280.2 248.0 255.8 125.0 17.3 239.8 205.8 144.2 222.0 367.3 360.9 1876.1 364.4 664.8 389.8 475.6 412.9 390.2 805.4 347.1 507.4 557.5 365.6 264.1 110.6 394.1 603.1 1108.4 453.6 293.8 531.0 863.8
Pb (ppm) 1.0 7.0 3.0 2.0 4.0 2.0 4.0 42.0 4.0 13.0 15.0 4.0 18.0 66.0 3009.0 53.0 215.0 11300.0 47.0 59.0 7.0 237.0 4.0 11.0 8.0 4.0 1.0 1.0 1.0 1.0 372.0 2.0 35.0 2135.0 13.0 12.0 6.0 50.0
Zn (ppm) 73.7 52.4 83.3 66.0 33.0 36.1 21.1 40.5 17.1 19.7 22.5 27.5 38.1 78.2 2018.9 55.1 375.5 8335.4 56.1 66.0 32.2 227.4 35.1 47.2 60.6 36.1 36.7 30.6 31.6 30.0 21.7 31.8 51.7 3403.0 27.2 29.3 36.0 114.9
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From (m) 108.75 110.10 110.85 112.65 113.75 115.20 116.80 118.00 119.40 120.90 121.65 122.45 123.00 124.10 124.70 125.95 126.80 128.70 129.85 131.75 132.15 133.20 134.00 135.20 136.00 136.60 137.35 138.80 139.95 140.75 142.65 144.55 145.50 147.00 147.80 148.90 150.90 152.45
To (m) 110.10 110.85 112.65 113.75 115.20 116.80 118.00 119.40 120.90 121.65 122.45 123.00 124.10 124.70 125.95 126.80 128.70 129.85 131.75 132.15 133.20 134.00 135.20 136.00 136.60 137.35 138.80 139.95 140.75 142.65 144.55 145.50 147.00 147.80 148.90 150.90 152.45 154.05
Length (m) 1.35 0.75 1.80 1.10 1.45 1.60 1.20 1.40 1.50 0.75 0.80 0.55 1.10 0.60 1.25 0.85 1.90 1.15 1.90 0.40 1.05 0.80 1.20 0.80 0.60 0.75 1.45 1.15 0.80 1.90 1.90 0.95 1.50 0.80 1.10 2.00 1.55 1.60
Au (ppm) 0.070 0.071 0.076 0.080 0.081 0.223 0.085 0.390 0.089 0.129 2.263 0.033 0.055 0.192 0.059 0.634 0.041 0.039 0.054 1.308 0.058 0.098 0.328 0.092 0.102 0.492 0.041 0.074 0.387 0.062 0.110 0.058 0.175 0.221 0.038 0.033 0.018 0.025
Ag (ppm) 2.6 2.0 1.3 0.7 1.1 9.8 1.9 11.6 0.3 2.3 21.8 0.2 0.5 4.8 3.6 16.7 0.8 0.8 3.3 27.9 0.4 1.4 9.9 1.0 1.1 6.9 0.7 1.1 9.1 1.3 2.8 1.5 4.2 5.4 0.3 0.1 1.0 0.2
Cu (ppm) 632.8 568.5 505.2 477.8 191.0 421.6 555.7 2621.4 500.2 659.1 487.8 174.1 276.1 74.2 234.2 83.5 120.2 153.0 316.2 259.3 23.9 82.5 1090.5 377.1 365.5 273.0 102.0 57.7 217.7 354.5 442.2 318.5 662.4 40.2 106.0 78.9 42.2 41.2
Pb (ppm) 3.0 6.0 7.0 5.0 8.0 52.0 6.0 35.0 1.0 9.0 3244.0 5.0 3.0 99.0 20.0 3912.0 19.0 10.0 38.0 5333.0 22.0 18.0 14.0 6.0 1.0 276.0 7.0 28.0 986.0 24.0 4.0 7.0 25.0 1005.0 9.0 4.0 59.0 5.0
Zn (ppm) 34.2 44.1 40.2 32.5 24.6 50.9 50.2 143.6 55.7 63.6 6628.0 40.5 52.6 136.8 83.2 1826.7 47.5 37.4 88.5 2730.0 62.1 29.9 33.8 77.4 54.6 321.9 45.1 47.2 664.7 47.0 41.7 53.2 79.0 1072.7 45.7 27.7 75.1 24.8
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From (m) 154.05 154.55 155.40 156.90 157.17 158.50 160.15 162.10 164.00 165.80 167.75 169.00 171.00 173.00 174.15 176.30 177.90 178.80 180.30 181.30 182.00 182.55 183.00 183.65 184.35 184.95 185.50 185.95 187.00 188.25 188.75 190.20 190.98 191.70 193.15 194.60 195.25 195.80
To (m) 154.55 155.40 156.90 157.17 158.50 160.15 162.10 164.00 165.80 167.75 169.00 171.00 173.00 174.15 176.30 177.90 178.80 180.30 181.30 182.00 182.55 183.00 183.65 184.35 184.95 185.50 185.95 187.00 188.25 188.75 190.20 190.98 191.70 193.15 194.60 195.25 195.80 197.38
Length (m) 0.50 0.85 1.50 0.27 1.33 1.65 1.95 1.90 1.80 1.95 1.25 2.00 2.00 1.15 2.15 1.60 0.90 1.50 1.00 0.70 0.55 0.45 0.65 0.70 0.60 0.55 0.45 1.05 1.25 0.50 1.45 0.78 0.72 1.45 1.45 0.65 0.55 1.58
Au (ppm) 0.016 0.021 0.013 2.752 0.041 0.084 0.028 0.026 0.028 0.049 0.084 0.027 0.055 0.074 0.056 0.096 0.278 0.756 0.182 0.165 0.170 0.100 0.305 0.935 0.088 0.148 0.132 0.547 0.377 0.408 1.463 0.275 0.646 0.410 0.887 4.758 5.540 0.834
Ag (ppm) 0.1 0.3 0.5 111.0 0.5 0.4 0.1 0.3 0.4 0.9 2.3 0.4 0.5 0.8 1.9 2.0 1.6 3.0 2.2 5.5 5.7 7.0 1.3 3.4 3.2 5.9 2.3 16.9 8.1 14.1 34.9 10.1 46.4 6.2 2.6 29.5 60.6 4.7
Cu (ppm) 16.0 39.9 10.6 683.3 83.0 208.3 50.3 61.3 56.4 118.0 212.9 57.7 27.3 70.7 137.9 83.5 74.7 22.7 38.3 132.6 114.8 88.5 17.8 93.5 152.2 157.3 42.4 181.2 250.6 241.2 336.5 169.7 614.6 139.8 98.7 408.2 437.3 68.7
Pb (ppm) 6.0 13.0 12.0 30400.0 10.0 5.0 1.0 4.0 6.0 11.0 13.0 7.0 19.0 15.0 14.0 21.0 26.0 359.0 80.0 106.0 262.0 720.0 44.0 282.0 236.0 25.0 41.0 2253.0 303.0 1946.0 7675.0 1602.0 12800.0 158.0 313.0 7094.0 17300.0 718.0
Zn (ppm) 49.7 58.1 27.3 27700.0 35.1 34.3 32.5 33.8 36.3 67.8 83.2 47.6 63.5 45.3 120.9 108.8 85.2 147.5 40.6 261.2 1198.1 1480.8 35.4 226.8 251.2 55.7 72.3 8941.3 917.3 2859.2 7673.3 1622.4 16100.0 440.6 316.5 10000.0 14300.0 656.3
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From To (m) (m) 197.38 198.08 198.08 198.80 0.00 2.05 2.05 4.00 4.00 6.05 6.05 7.70 7.70 9.05 9.05 11.00 11.00 13.00 13.00 15.00 15.00 17.00 17.00 19.00 19.00 20.20 20.20 21.40 21.40 23.00 23.00 25.00 25.00 26.00 26.00 27.00 27.00 29.00 29.00 31.00 31.00 33.00 33.00 34.05 34.05 35.55 35.55 36.75 36.75 37.90 37.90 39.35 39.35 40.80 40.80 41.75 41.75 43.00 43.00 45.00 45.00 47.00 47.00 49.00 49.00 51.05 51.05 52.45 52.45 53.85 53.85 55.35 55.35 57.00 57.00 59.00
Length (m) 0.70 0.72 2.05 1.95 2.05 1.65 1.35 1.95 2.00 2.00 2.00 2.00 1.20 1.20 1.60 2.00 1.00 1.00 2.00 2.00 2.00 1.05 1.50 1.20 1.15 1.45 1.45 0.95 1.25 2.00 2.00 2.00 2.05 1.40 1.40 1.50 1.65 2.00
Au (ppm) 0.041 0.182 0.009 0.010 0.012 0.013 0.003 0.010 0.023 0.028 0.025 0.016 0.032 0.135 0.439 0.090 4.788 0.395 0.097 0.051 0.096 0.028 0.039 0.053 0.184 0.096 0.146 0.049 0.054 0.027 0.045 0.041 0.029 0.034 0.039 0.103 0.021 0.024
Ag (ppm) 0.6 1.6 0.3 0.1 0.1 0.1 0.1 0.1 0.3 1.1 1.3 0.6 1.1 4.0 14.6 9.6 22.4 8.1 7.8 6.0 6.8 4.7 0.5 1.8 7.0 7.6 4.0 0.6 1.2 1.9 3.2 0.8 0.8 1.1 0.8 0.6 1.2 2.3
Cu (ppm) 49.3 258.3 11.9 8.9 27.1 3.5 11.1 23.9 42.1 37.7 49.1 60.5 68.2 92.6 209.0 337.6 340.2 227.2 291.3 306.0 268.7 377.2 254.4 322.4 521.7 529.2 208.2 326.5 613.5 234.3 276.8 316.3 163.7 236.3 260.3 680.7 284.9 290.9
Pb (ppm) 34.0 16.0 3.0 3.0 5.0 1.0 2.0 8.0 16.0 20.0 37.0 74.0 94.0 83.0 226.0 36.0 1639.0 49.0 22.0 15.0 17.0 7.0 1.0 4.0 14.0 4.0 6.0 1.0 1.0 3.0 3.0 1.0 1.0 3.0 1.0 1.0 1.0 1.0
Zn (ppm) 66.7 51.0 137.9 108.1 84.6 79.0 95.1 85.1 123.0 205.1 157.9 336.0 635.7 990.3 478.9 59.0 3391.3 133.0 41.8 42.8 38.1 36.3 24.3 26.1 49.9 48.2 51.0 50.0 118.3 47.3 57.2 53.1 55.8 49.9 58.2 98.7 45.8 51.7
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From (m) 59.00 61.00 63.00 64.85 66.00 68.00 69.15 70.25 71.40 72.65 74.30 76.00 77.70 78.65 79.70 80.75 82.35 83.95 85.55 87.20 88.25 89.45 91.00 93.00 94.35 95.00 96.40 97.65 99.40 100.80 102.40 104.00 106.00 107.20 108.40 108.90 110.90 112.05
To (m) 61.00 63.00 64.85 66.00 68.00 69.15 70.25 71.40 72.65 74.30 76.00 77.70 78.65 79.70 80.75 82.35 83.95 85.55 87.20 88.25 89.45 91.00 93.00 94.35 95.00 96.40 97.65 99.40 100.80 102.40 104.00 106.00 107.20 108.40 108.90 110.90 112.05 113.43
Length (m) 2.00 2.00 1.85 1.15 2.00 1.15 1.10 1.15 1.25 1.65 1.70 1.70 0.95 1.05 1.05 1.60 1.60 1.60 1.65 1.05 1.20 1.55 2.00 1.35 0.65 1.40 1.25 1.75 1.40 1.60 1.60 2.00 1.20 1.20 0.50 2.00 1.15 1.38
Au (ppm) 0.178 0.218 0.025 0.027 0.019 0.012 0.042 0.052 0.036 0.024 0.051 0.186 2.638 0.096 0.074 0.092 0.028 0.038 0.112 0.090 0.103 0.319 0.072 0.057 0.080 0.044 0.118 0.066 2.430 0.057 0.079 0.115 0.096 0.203 10.590 0.065 0.050 0.052
Ag (ppm) 3.9 1.6 0.1 0.3 0.2 0.3 1.0 2.5 5.3 0.8 1.0 4.7 27.9 8.1 7.2 4.9 1.8 0.9 1.3 1.1 1.6 1.5 1.4 1.1 3.0 2.0 4.4 3.7 12.0 2.5 1.3 1.9 5.0 9.9 45.8 2.9 2.1 1.9
Cu (ppm) 231.7 412.2 55.8 222.2 90.1 98.5 328.2 632.6 257.0 159.9 342.7 161.3 345.7 239.1 318.7 307.8 178.3 208.7 379.3 396.4 556.7 488.9 480.3 398.2 333.9 452.1 298.7 325.2 385.8 269.9 276.2 289.3 327.7 586.8 756.2 429.0 298.1 233.4
Pb (ppm) 39.0 1.0 3.0 1.0 1.0 3.0 2.0 3.0 17.0 4.0 3.0 189.0 3036.0 29.0 24.0 10.0 3.0 1.0 1.0 3.0 7.0 2.0 3.0 4.0 15.0 3.0 44.0 29.0 869.0 12.0 16.0 17.0 52.0 60.0 5110.0 9.0 14.0 10.0
Zn (ppm) 42.5 66.2 17.8 21.1 18.8 15.6 30.0 38.8 30.3 32.1 32.8 31.4 4907.6 30.2 39.1 58.5 34.5 28.1 33.0 34.9 37.5 28.5 36.5 31.0 45.0 34.8 56.5 50.0 3261.2 31.1 30.2 26.8 44.9 61.7 2804.7 41.2 55.4 51.0
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From (m) 113.43 115.30 117.20 118.95 120.67 122.55 124.10 125.25 127.20 128.65 131.15 132.75 134.70 135.95 137.25 139.10 140.90 142.90 143.35 144.75 146.20 148.00 149.80 151.70 152.65 154.60 155.90 157.25 158.70 160.30 161.90 163.50 165.25 167.05 169.00 171.00 173.00 175.00
To (m) 115.30 117.20 118.95 120.67 122.55 124.10 125.25 127.20 128.65 131.15 132.75 134.75 137.25 137.25 139.10 140.90 142.90 143.35 144.75 146.20 148.00 149.80 151.70 152.65 154.60 155.90 157.25 158.70 160.30 161.90 163.50 165.25 167.05 169.00 171.00 173.00 175.00 177.00
Length (m) 1.87 1.90 1.75 1.72 1.88 1.55 1.15 1.95 1.45 2.50 1.60 2.00 2.55 1.30 1.85 1.80 2.00 0.45 1.40 1.45 1.80 1.80 1.90 0.95 1.95 1.30 1.35 1.45 1.60 1.60 1.60 1.75 1.80 1.95 2.00 2.00 2.00 2.00
Au (ppm) 0.087 0.065 0.058 0.079 0.039 0.079 0.085 0.083 0.048 0.053 0.227 0.046 0.037 0.076 0.091 0.036 0.040 0.196 0.025 0.024 0.036 0.033 0.036 0.044 0.170 0.059 0.073 1.906 0.102 0.097 0.052 0.133 0.506 0.071 0.151 0.160 0.157 0.151
Ag (ppm) 2.5 0.8 0.5 0.8 1.4 0.9 0.9 1.4 1.5 1.3 1.9 1.2 0.6 0.7 1.3 0.8 1.1 3.1 0.3 0.9 0.6 0.3 0.8 0.8 1.9 1.7 1.3 14.2 3.6 3.0 1.2 8.7 25.9 2.9 2.4 3.8 2.4 3.5
Cu (ppm) 254.5 371.7 348.9 474.9 105.6 341.1 529.9 337.5 326.6 533.7 446.3 334.5 255.7 353.1 595.8 261.5 261.0 409.1 78.9 225.0 447.8 272.8 222.1 161.8 656.6 428.4 399.9 380.0 419.1 341.5 205.0 217.6 257.1 398.7 306.3 463.4 255.1 602.2
Pb (ppm) 14.0 4.0 3.0 3.0 17.0 3.0 1.0 8.0 7.0 1.0 4.0 1.0 1.0 1.0 8.0 11.0 12.0 17.0 10.0 9.0 1.0 1.0 7.0 2.0 3.0 4.0 5.0 978.0 17.0 17.0 7.0 506.0 2683.0 12.0 21.0 111.0 43.0 19.0
Zn (ppm) 36.7 27.1 29.5 25.1 34.8 36.2 39.2 38.0 42.4 58.4 51.4 50.7 30.3 33.1 34.3 33.3 38.9 54.4 54.9 43.7 23.1 21.0 27.9 25.5 35.5 33.0 35.7 4090.6 50.1 50.3 46.3 761.4 4052.4 53.1 51.2 209.0 85.5 47.8
February 8, 2011
154
From (m) 177.00 179.00 181.00 183.00 185.00 187.00 189.00 191.00 191.95 193.05 194.05 195.45 196.90 198.40 200.00 201.40 203.00 204.90 205.60 207.15 208.75 210.10 212.00 214.00 215.70 217.30 218.95 220.20 0.00 1.40 2.70 4.40 6.40 8.40 10.40 12.40 14.40 16.30
To (m) 179.00 181.00 183.00 185.00 187.00 189.00 191.00 191.95 193.05 194.05 195.45 196.90 198.40 200.00 201.40 203.00 204.90 205.60 207.15 208.75 210.10 212.00 214.00 215.70 217.30 218.95 220.20 221.50 1.40 2.70 4.40 6.40 8.40 10.40 12.40 14.40 16.30 18.30
Length (m) 2.00 2.00 2.00 2.00 2.00 2.00 2.00 0.95 1.10 1.00 1.40 1.45 1.50 1.60 1.40 1.60 1.90 0.70 1.55 1.60 1.35 1.90 2.00 1.70 1.60 1.65 1.25 1.30 1.40 1.30 1.70 2.00 2.00 2.00 2.00 2.00 1.90 2.00
Au (ppm) 0.408 0.142 0.096 0.088 0.044 0.047 0.174 0.046 0.050 0.052 0.063 0.055 0.048 0.116 0.130 0.139 0.088 0.210 0.072 0.103 0.295 0.105 0.179 0.138 0.133 0.321 0.338 0.745 0.166 0.353 0.300 0.339 0.069 0.061 0.061 0.044 0.051 0.049
Ag (ppm) 5.2 2.9 1.5 1.7 1.5 1.3 1.3 1.2 0.8 0.7 1.3 4.9 0.5 0.9 7.2 1.9 3.7 7.3 3.6 4.1 4.4 3.3 1.9 4.6 5.1 5.3 19.0 37.5 2.1 5.6 5.6 4.2 1.5 1.8 1.9 3.5 3.5 3.3
Cu (ppm) 360.8 277.6 453.5 404.0 316.2 293.2 194.6 267.1 230.0 221.2 253.0 433.2 193.4 380.3 313.4 235.8 217.0 266.0 243.8 210.1 194.7 112.9 78.0 164.0 133.5 86.5 243.1 235.1 391.4 305.5 312.4 289.3 273.6 296.6 324.9 295.2 351.0 469.9
Pb (ppm) 202.0 219.0 8.0 4.0 5.0 7.0 30.0 6.0 5.0 1.0 7.0 30.0 5.0 6.0 140.0 13.0 341.0 503.0 90.0 92.0 203.0 420.0 126.0 474.0 568.0 1222.0 2403.0 8258.0 157.0 88.0 87.0 72.0 10.0 9.0 9.0 7.0 8.0 5.0
Zn (ppm) 280.9 339.6 47.7 54.4 55.9 63.6 74.8 48.9 43.3 47.5 52.2 74.1 44.6 54.6 87.3 60.6 537.4 766.6 595.5 128.0 155.1 726.9 182.3 1139.1 757.4 1771.7 4137.8 6303.6 454.9 78.1 76.6 102.5 60.6 56.0 75.9 59.9 79.7 58.9
February 8, 2011
155
From (m) 18.30 20.30 22.30 24.40 25.00 26.90 27.30 28.95 30.60 31.75 33.50 34.55 36.50 38.50 40.50 42.50 43.90 45.30 47.20 48.40 49.60 49.95 51.95 53.95 55.45 57.10 57.50 59.45 60.10 60.85 61.25 63.25 65.15 67.15 68.35 70.35 72.35 74.35
To (m) 20.30 22.30 24.40 25.00 26.90 27.30 28.95 30.60 31.75 33.50 34.55 36.50 38.50 40.50 42.50 43.90 45.30 47.20 48.40 49.60 49.95 51.95 53.95 55.45 57.10 57.50 59.45 60.10 60.85 61.25 63.25 65.15 67.15 68.35 70.35 72.35 74.35 76.35
Length (m) 2.00 2.00 2.10 0.60 1.90 0.40 1.65 1.65 1.15 1.75 1.05 1.95 2.00 2.00 2.00 1.40 1.40 1.90 1.20 1.20 0.35 2.00 2.00 1.50 1.65 0.40 1.95 0.65 0.75 0.40 2.00 1.90 2.00 1.20 2.00 2.00 2.00 2.00
Au (ppm) 0.051 0.034 0.019 0.053 0.050 0.051 0.034 0.067 0.085 0.988 0.100 0.044 0.043 0.049 0.039 0.043 0.042 0.037 0.082 0.038 0.215 0.089 0.054 0.042 0.058 0.094 0.044 0.065 0.050 0.119 0.230 0.062 0.048 0.056 0.052 0.028 0.089 0.078
Ag (ppm) 10.8 14.0 8.7 6.8 2.5 3.3 1.7 5.5 8.5 10.2 28.0 3.4 1.0 3.5 1.6 3.5 1.3 3.1 3.8 8.6 9.1 4.8 1.6 1.3 4.2 7.4 2.7 1.4 3.7 10.3 2.3 1.4 0.8 1.1 1.5 0.9 7.1 4.3
Cu (ppm) 284.3 401.0 369.6 401.2 400.3 475.2 556.3 584.8 588.7 491.5 596.4 603.2 246.0 303.3 237.0 272.0 374.1 260.8 174.0 322.1 173.7 541.5 448.5 431.6 629.3 393.6 595.5 512.1 375.6 378.3 559.2 467.8 279.4 373.7 377.5 442.4 571.4 346.4
Pb (ppm) 9.0 12.0 6.0 7.0 3.0 6.0 6.0 25.0 35.0 182.0 63.0 11.0 6.0 41.0 5.0 11.0 3.0 6.0 12.0 14.0 483.0 320.0 1.0 3.0 8.0 19.0 217.0 177.0 60.0 32.0 137.0 319.0 44.0 1.0 3.0 1.0 46.0 271.0
Zn (ppm) 71.0 88.5 89.3 85.6 117.2 151.9 241.3 92.2 80.9 97.5 146.2 95.4 93.6 109.1 76.2 73.4 79.8 89.1 83.0 88.5 1325.8 312.7 91.6 76.8 77.5 140.4 895.0 127.6 439.5 42.9 645.4 294.1 137.5 40.2 170.3 41.3 164.4 309.8
February 8, 2011
156
From (m) 76.35 78.35 80.35 82.00 83.90 85.90 87.90 89.10 89.70 90.90 91.90 93.20 95.20 96.40 97.40 98.40 100.00 101.50 102.40 103.90 105.40 107.40 109.40 111.40 113.40 115.30 116.80 117.85 119.37 121.00 123.00 124.30 125.65 127.00 129.00 130.90 132.20 134.10
To (m) 78.35 80.35 82.00 83.90 85.90 87.90 89.10 89.70 90.90 91.90 93.20 95.20 96.40 97.40 98.40 100.00 101.50 102.40 103.90 105.40 107.40 109.40 111.40 113.40 115.30 116.80 117.85 119.37 121.00 123.00 124.30 125.65 127.00 129.00 130.90 132.20 134.10 136.10
Length (m) 2.00 2.00 1.65 1.90 2.00 2.00 1.20 0.60 1.20 1.00 1.30 2.00 1.20 1.00 1.00 1.60 1.50 0.90 1.50 1.50 2.00 2.00 2.00 2.00 1.90 1.50 1.05 1.52 1.63 2.00 1.30 1.35 1.35 2.00 1.90 1.30 1.90 2.00
Au (ppm) 0.087 0.082 0.044 0.043 0.463 0.036 0.040 0.031 0.022 0.053 0.034 0.040 0.038 0.063 0.100 0.246 0.102 0.028 0.030 0.240 0.075 0.062 0.054 0.025 0.052 0.000 0.000 0.056 0.000 0.000 0.000 0.000 0.000 0.027 0.042 0.036 0.019 0.000
Ag (ppm) 7.4 2.5 0.9 1.0 6.4 1.8 1.1 1.6 1.3 14.2 4.1 1.7 2.7 3.2 3.4 15.8 4.0 2.9 0.6 9.7 7.5 6.1 2.8 0.7 1.9 0.0 0.0 4.1 0.0 0.0 0.0 0.0 0.0 1.0 0.9 3.8 0.8 0.0
Cu (ppm) 434.8 348.3 366.4 355.3 199.5 321.7 247.5 450.5 276.9 167.4 274.1 224.2 276.6 136.9 391.4 312.8 411.7 317.0 331.8 1420.3 461.2 499.1 441.2 257.7 357.4 0.0 0.0 607.3 0.0 0.0 0.0 0.0 0.0 241.1 256.8 350.7 175.9 0.0
Pb (ppm) 42.0 17.0 1.0 1.0 228.0 11.0 4.0 1.0 6.0 41.0 14.0 1.0 11.0 75.0 12.0 155.0 3.0 25.0 31.0 11.0 12.0 11.0 10.0 1.0 1.0 0.0 0.0 6.0 0.0 0.0 0.0 0.0 0.0 1.0 1.0 7.0 1.0 0.0
Zn (ppm) 161.2 212.5 96.6 1333.6 496.6 132.3 76.7 139.4 56.4 90.9 110.7 58.0 175.2 123.8 260.7 173.8 45.7 230.4 41.7 62.9 123.5 102.0 68.5 35.2 84.7 0.0 0.0 129.1 0.0 0.0 0.0 0.0 0.0 57.3 40.4 49.5 52.2 0.0
February 8, 2011
157
From (m) 136.10 138.00 140.00 142.00 144.00 145.85 147.70 149.70 151.00 153.00 155.00 156.95 158.25 159.90 161.00 162.40 163.60 164.80 166.80 168.58 170.00 172.00 173.20 174.15 175.30 177.00 178.50 180.30 182.00 183.45 184.70 186.00 188.00 190.00 192.00 194.00 195.10 195.65
To (m) 138.00 140.00 142.00 144.00 145.85 147.70 149.70 151.00 153.00 155.00 156.95 158.25 159.90 161.00 162.40 163.60 164.80 166.80 168.58 170.00 172.00 173.20 174.15 175.30 177.00 178.50 180.30 182.00 183.45 184.70 186.00 188.00 190.00 192.00 194.00 195.10 195.65 196.85
Length (m) 1.90 2.00 2.00 2.00 1.85 1.85 2.00 1.30 2.00 2.00 1.95 1.30 1.65 Tb 1.40 1.20 1.20 2.00 1.78 1.42 2.00 1.20 0.95 1.15 1.70 1.50 1.80 1.70 1.45 1.25 1.30 2.00 2.00 2.00 2.00 1.10 0.55 1.20
Au (ppm) 0.000 0.357 0.000 0.063 0.126 0.065 0.000 0.000 0.198 0.000 0.100 0.000 0.000 0.000 0.000 0.055 0.108 0.052 0.069 0.167 0.095 0.102 0.060 0.052 0.041 0.064 0.120 0.052 0.060 0.046 0.030 0.047 0.057 0.091 0.069 0.251 4.323 0.230
Ag (ppm) 0.0 32.8 0.0 3.9 3.4 1.8 0.0 0.0 7.7 0.0 4.3 0.0 0.0 0.0 0.0 1.0 1.6 1.6 2.5 6.2 3.9 0.9 1.0 3.2 1.1 2.5 2.3 7.2 3.6 2.3 2.7 3.6 3.3 2.2 1.8 8.1 24.2 10.6
Cu (ppm) 0.0 565.7 0.0 376.7 812.8 341.8 0.0 0.0 381.1 0.0 481.7 0.0 0.0 0.0 0.0 341.1 573.2 304.7 368.7 492.7 356.7 291.5 332.7 445.5 358.8 282.3 105.5 323.5 294.2 171.4 167.0 200.5 245.4 240.3 282.3 375.8 796.7 390.7
Pb (ppm) 0.0 474.0 0.0 16.0 5.0 5.0 0.0 0.0 126.0 0.0 7.0 0.0 0.0 0.0 0.0 3.0 1.0 7.0 20.0 194.0 62.0 7.0 3.0 12.0 7.0 13.0 89.0 19.0 16.0 20.0 12.0 10.0 18.0 26.0 5.0 667.0 1580.0 730.0
Zn (ppm) 0.0 521.3 0.0 75.0 67.8 45.8 0.0 0.0 215.9 0.0 61.1 0.0 0.0 0.0 0.0 59.9 61.0 39.2 38.8 56.9 106.5 32.8 44.6 45.0 37.6 37.6 121.6 30.8 33.2 35.0 29.8 34.2 38.7 133.3 50.2 318.6 11700.0 286.1
February 8, 2011
158
From To (m) (m) 196.85 198.75 198.75 200.45 200.45 202.60 3.30 5.25 5.25 7.25 7.25 9.25 9.25 11.25 11.25 13.25 13.25 15.25 15.25 17.25 17.25 19.30 19.30 20.60 20.60 22.30 22.30 23.75 23.75 25.75 25.75 27.60 27.60 29.60 29.60 30.65 30.65 31.75 31.75 32.15 32.15 33.05 33.05 33.55 33.55 35.30 35.30 36.60 36.60 37.80 37.80 39.05 39.05 40.10 40.10 42.10 42.10 44.10 44.10 45.50 45.50 46.85 46.85 48.30 48.30 49.80 49.80 51.80 51.80 53.80 53.80 55.00 55.00 56.45 56.45 58.40
Length (m) 1.90 1.70 2.15 1.95 2.00 2.00 2.00 2.00 2.00 2.00 2.05 1.30 1.70 1.45 2.00 1.85 2.00 1.05 1.10 0.40 0.90 0.50 1.75 1.30 1.20 1.25 1.05 2.00 2.00 1.40 1.35 1.45 1.50 2.00 2.00 1.20 1.45 1.95
Au (ppm) 0.564 0.251 0.882 3.008 0.153 0.082 0.085 0.034 0.048 0.035 0.037 0.023 0.034 0.049 0.063 0.045 0.059 0.098 0.106 0.072 0.071 0.116 0.117 0.047 0.035 0.017 0.021 0.048 0.050 0.052 0.052 0.032 0.034 0.046 0.067 0.045 0.046 0.049
Ag (ppm) 14.5 13.8 50.5 45.7 15.4 38.5 20.6 3.6 9.9 8.9 6.5 4.8 10.4 25.4 8.0 3.5 4.4 1.7 1.3 1.0 2.1 1.7 1.1 0.6 0.5 0.7 0.4 0.8 0.4 0.7 0.6 0.1 0.7 0.1 0.4 0.4 2.7 0.1
Cu (ppm) 298.9 204.5 700.6 454.0 410.1 542.7 536.0 422.4 349.9 376.0 319.2 283.6 221.8 364.2 295.9 307.7 216.1 371.4 217.8 324.5 167.7 57.3 192.1 138.0 108.8 53.9 40.9 100.9 111.2 51.0 79.5 99.5 46.8 61.1 41.9 111.2 29.0 68.4
Pb (ppm) 1120.0 424.0 1275.0 4640.0 3744.0 218.0 133.0 139.0 189.0 76.0 26.0 7.0 107.0 9.0 8.0 9.0 50.0 13.0 16.0 9.0 10.0 10.0 9.0 6.0 4.0 3.0 5.0 4.0 1.0 2.0 7.0 5.0 9.0 1.0 8.0 4.0 83.0 1.0
Zn (ppm) 1096.6 680.9 3038.5 102.6 157.9 233.3 192.8 163.7 126.3 118.3 110.6 104.9 110.9 90.2 145.8 173.5 125.6 85.2 65.8 68.0 83.1 38.6 62.9 77.2 59.9 52.2 66.6 59.5 52.7 76.5 89.9 56.2 57.0 57.8 75.3 87.2 130.8 57.9
February 8, 2011
159
From (m) 58.40 59.75 61.75 63.75 64.85 65.85 67.70 68.70 70.70 71.75 73.75 75.75 77.05 78.35 80.35 81.65 83.65 84.75 86.05 87.85 89.60 90.75 91.65 92.80 93.50 94.70 95.80 97.80 99.35 100.90 102.90 104.90 106.90 108.90 110.90 112.40 113.85 115.85
To (m) 59.75 61.75 63.75 64.85 65.85 67.70 68.70 70.70 71.75 73.75 75.75 77.05 78.35 80.35 81.65 83.65 84.75 86.05 87.85 89.60 90.75 91.65 92.80 93.50 94.70 95.80 97.80 99.35 100.90 102.90 104.90 106.90 108.90 110.90 112.40 113.85 115.85 117.90
Length (m) 1.35 2.00 2.00 1.10 1.00 1.85 1.00 2.00 1.05 2.00 2.00 1.30 1.30 2.00 1.30 2.00 1.10 1.30 1.80 1.75 1.15 0.90 1.15 0.70 1.20 1.10 2.00 1.55 1.55 2.00 2.00 2.00 2.00 2.00 1.50 1.45 2.00 2.05
Au (ppm) 0.029 0.039 0.043 0.060 0.067 0.037 0.051 0.028 0.016 0.025 0.018 0.018 0.052 0.065 0.062 0.037 0.013 0.010 0.069 0.333 0.227 7.840 1.668 6.520 0.207 0.122 0.041 0.041 0.089 0.081 0.078 0.072 0.054 0.057 0.046 0.039 0.065 0.068
Ag (ppm) 0.2 0.8 0.5 0.6 3.1 1.1 0.8 0.5 0.8 0.9 0.7 0.3 0.9 2.0 2.1 1.1 0.5 0.4 6.4 6.4 5.3 40.1 28.4 186.0 15.7 4.0 1.5 0.9 2.0 0.3 0.8 0.6 0.5 0.3 0.1 0.2 0.5 0.4
Cu (ppm) 31.0 59.9 66.3 68.0 346.8 124.7 46.7 75.7 34.1 80.7 44.3 29.5 78.0 229.7 213.3 120.9 32.6 12.2 267.7 86.8 109.0 483.8 341.2 1928.5 228.1 62.3 68.2 56.3 88.2 154.4 138.1 87.9 115.6 142.8 115.3 131.1 159.7 152.3
Pb (ppm) 1.0 24.0 2.0 6.0 6.0 1.0 16.0 6.0 9.0 9.0 3.0 4.0 49.0 5.0 10.0 6.0 5.0 16.0 31.0 27.0 77.0 7459.0 4552.0 20300.0 355.0 59.0 31.0 18.0 31.0 5.0 7.0 7.0 56.0 1.0 3.0 1.0 6.0 5.0
Zn (ppm) 55.0 58.9 51.6 55.1 47.3 42.9 39.2 54.2 48.9 46.6 32.1 34.6 30.9 39.4 36.3 29.3 34.8 31.3 27.5 29.7 53.1 13400.0 16700.0 9114.2 189.6 42.2 50.9 75.5 47.5 39.0 42.2 40.6 67.5 35.2 28.0 31.7 33.9 36.5
February 8, 2011
160
From (m) 117.90 118.90 119.80 121.70 123.65 124.75 125.80 126.90 0.00 2.00 4.00 5.50 7.05 8.17 3.10 4.50 4.95 6.95 8.95 10.95 12.95 14.90 15.70 17.20 18.70 20.05 22.15 23.40 25.25 27.25 29.25 31.29 33.00 33.70 35.60 37.00 38.00 40.00
To (m) 118.90 119.80 121.70 123.65 124.75 125.80 126.90 128.00 2.00 4.00 5.50 7.05 8.17 9.83 4.50 5.95 6.95 8.95 10.95 12.95 14.90 15.70 17.20 18.70 20.05 22.15 23.40 25.25 27.25 29.25 31.29 33.00 33.70 35.60 37.00 38.00 40.00 42.00
Length (m) 1.00 0.90 1.90 1.95 1.10 1.05 1.10 1.10 2.00 2.00 1.50 1.55 1.12 1.66 1.40 1.45 2.00 2.00 2.00 2.00 1.95 0.80 1.50 1.50 1.35 2.10 1.25 1.85 2.00 2.00 2.04 1.71 0.70 1.90 1.40 1.00 2.00 2.00
Au (ppm) 0.126 0.076 0.160 0.057 0.021 0.039 0.053 0.070 0.086 0.029 0.069 0.064 0.823 0.706 0.145 0.065 0.000 0.022 0.020 0.021 0.046 0.126 0.111 0.029 0.148 0.024 0.014 0.429 0.038 0.032 0.039 0.009 0.286 0.018 0.020 0.021 0.022 0.018
Ag (ppm) 0.7 1.0 0.4 0.3 0.6 0.8 0.3 0.2 0.6 0.2 0.3 0.1 31.8 14.6 1.5 1.2 0.0 0.5 1.1 1.5 0.5 1.2 0.9 1.1 5.2 1.1 1.8 10.9 3.5 3.6 1.1 0.2 11.0 0.7 0.1 0.3 0.5 1.6
Cu (ppm) 294.9 309.6 190.7 149.4 109.7 258.4 105.5 117.7 199.2 48.7 93.6 96.9 305.0 186.4 225.0 92.8 0.0 15.9 23.7 17.3 40.7 13.7 9.5 26.7 14.7 34.0 45.9 87.1 40.3 48.3 57.0 32.8 51.4 32.3 28.8 10.7 25.3 27.6
Pb (ppm) 4.0 5.0 3.0 1.0 4.0 7.0 11.0 18.0 7.0 10.0 14.0 9.0 5150.0 3250.0 27.0 24.0 0.0 14.0 22.0 20.0 10.0 94.0 41.0 57.0 27.0 31.0 17.0 1566.0 603.0 123.0 14.0 10.0 2609.0 29.0 4.0 9.0 8.0 16.0
Zn (ppm) 38.7 37.5 31.6 38.7 23.0 20.9 32.3 48.8 133.0 148.6 62.4 70.0 6576.7 2596.2 87.7 62.4 0.0 89.6 72.6 75.3 69.4 111.8 47.7 80.9 79.9 75.8 83.6 2426.7 66.1 435.5 49.8 81.1 1460.0 56.4 62.2 56.6 45.8 38.4
February 8, 2011
161
From (m) 42.00 5.95 7.95 9.95 11.95 13.55 15.20 17.20 19.20 21.20 23.30 25.40 27.30 29.20 31.00 32.70 34.50 36.45 37.60 39.00 40.40 42.40 44.40 46.40 48.40 50.25 51.45 53.40 54.40 56.20 57.70 58.90 60.20 62.15 63.35 64.10 66.10 68.20
To (m) 43.67 7.95 9.95 11.95 13.55 15.20 17.20 19.20 21.20 23.30 25.40 27.30 29.20 31.00 32.70 34.50 36.45 37.60 39.00 40.40 42.40 44.40 46.40 48.40 50.25 51.45 53.40 54.40 56.20 57.70 58.90 60.20 62.15 63.35 64.10 66.10 68.20 70.30
Length (m) 1.67 2.00 2.00 2.00 1.60 1.65 2.00 2.00 2.00 2.10 2.10 1.90 1.90 1.80 1.70 1.80 1.95 1.15 1.40 1.40 2.00 2.00 2.00 2.00 1.85 1.20 1.95 1.00 1.80 1.50 1.20 1.30 1.95 1.20 0.75 2.00 2.10 2.10
Au (ppm) 0.012 0.073 0.151 0.059 0.066 0.043 0.028 0.046 0.050 0.117 0.056 0.044 0.037 0.053 2.705 0.055 0.055 0.232 0.057 0.052 0.054 0.062 0.032 0.022 0.305 20.060 5.420 0.291 0.661 0.509 0.089 0.073 0.118 0.641 0.115 0.721 1.596 0.165
Ag (ppm) 0.1 0.3 1.5 2.1 0.8 1.2 0.8 1.9 5.1 1.3 0.7 1.1 0.1 2.3 15.7 3.1 0.6 9.6 1.3 1.0 1.4 1.2 0.5 0.4 5.2 77.1 22.0 2.3 9.4 21.4 2.8 2.7 10.3 11.6 4.6 11.0 13.6 3.4
Cu (ppm) 21.0 24.6 150.6 140.8 138.9 151.9 82.1 228.5 499.7 179.2 95.2 159.2 19.0 350.3 143.0 396.2 58.1 62.9 56.2 48.0 46.2 57.2 28.1 23.6 64.9 636.2 247.5 38.8 128.6 259.7 40.8 45.1 140.0 143.6 143.3 196.1 187.1 89.3
Pb (ppm) 6.0 11.0 11.0 26.0 16.0 36.0 35.0 56.0 36.0 23.0 53.0 23.0 6.0 9.0 1876.0 15.0 15.0 1411.0 40.0 21.0 28.0 10.0 13.0 43.0 1407.0 25600.0 4059.0 271.0 1332.0 3272.0 231.0 124.0 608.0 1147.0 62.0 1144.0 2587.0 81.0
Zn (ppm) 55.7 63.4 100.0 251.4 178.1 195.8 183.9 148.1 378.1 129.6 149.4 126.6 52.5 135.6 2042.8 69.2 76.4 1724.1 90.7 72.1 99.1 45.5 47.7 61.5 1390.8 29900.0 6594.7 743.6 505.5 7257.5 314.2 205.8 960.5 1841.6 68.3 829.6 2326.4 117.2
February 8, 2011
162
From (m) 70.30 72.10 73.70 75.70 77.70 79.70 81.70 4.20 5.80 7.80 9.80 11.80 13.80 15.80 17.80 19.80 21.80 23.80 25.80 27.80 29.80 31.80 33.80 35.80 37.80 39.70 40.30 41.50 42.60 43.35 44.70 46.05 46.95 48.30 50.30 52.30 54.20 56.20
To (m) 72.10 73.70 75.70 77.70 79.70 81.70 83.70 5.80 7.80 9.80 11.80 13.80 15.80 17.80 19.80 21.80 23.80 25.80 27.80 29.80 31.80 33.80 35.80 37.80 39.70 40.30 41.50 42.60 43.35 44.70 46.05 46.95 48.30 50.30 52.30 54.20 56.20 58.20
Length (m) 1.80 1.60 2.00 2.00 2.00 2.00 2.00 1.60 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 1.90 0.60 1.20 1.10 0.75 1.35 1.35 0.90 1.35 2.00 2.00 1.90 2.00 2.00
Au (ppm) 5.420 0.264 0.040 0.060 0.090 0.062 0.056 0.050 0.060 0.051 0.041 0.074 0.333 0.050 0.017 0.044 0.076 0.049 0.070 0.068 0.158 0.084 0.221 0.463 0.078 0.049 0.064 0.029 1.359 0.132 0.251 0.022 0.051 0.040 0.035 0.042 0.017 0.025
Ag (ppm) 39.7 9.9 2.3 2.5 2.5 0.4 1.5 1.7 0.3 1.3 1.3 1.8 3.4 1.3 0.8 0.3 0.5 0.6 0.3 0.4 0.1 0.1 1.7 6.0 0.7 0.4 0.4 0.7 19.3 3.9 0.7 0.5 0.7 0.7 0.7 1.2 1.1 0.1
Cu (ppm) 273.7 224.8 142.0 382.9 160.5 98.5 144.1 122.1 50.0 100.9 70.1 150.4 408.2 201.7 116.0 100.3 151.6 45.9 107.9 85.6 219.7 113.2 279.5 231.1 119.4 49.0 52.1 63.8 139.9 105.1 100.0 12.9 21.1 28.4 29.7 38.8 45.9 37.8
Pb (ppm) 7194.0 223.0 35.0 19.0 23.0 5.0 11.0 31.0 14.0 20.0 20.0 14.0 15.0 15.0 22.0 6.0 7.0 15.0 10.0 6.0 5.0 5.0 9.0 174.0 11.0 17.0 12.0 17.0 3634.0 826.0 26.0 36.0 118.0 60.0 21.0 34.0 26.0 7.0
Zn (ppm) 12500.0 526.0 151.3 94.1 83.3 48.4 54.7 237.0 398.4 201.7 380.0 162.5 250.7 205.0 193.1 52.3 53.5 107.1 92.3 72.0 51.0 54.2 63.7 683.7 79.3 107.9 190.0 57.3 4676.4 577.0 96.0 54.7 73.3 100.0 76.9 80.2 112.6 44.6
February 8, 2011
163
From (m) 58.20 60.20 61.80 63.45 64.80 66.10 68.10 70.10 72.10 73.60 75.15 76.80 78.60 80.30 81.95 83.95 85.05 87.00 88.50 89.90 91.90 93.55 95.50 97.30 99.25 101.20 102.70 104.25 105.80 107.35 109.05 111.05 112.60 114.15 116.25 117.85 119.85 121.35
To (m) 60.20 61.80 63.45 64.80 66.10 68.10 70.10 72.10 73.60 75.15 76.80 78.60 80.30 81.95 83.95 85.05 87.00 88.50 89.90 91.90 93.55 95.50 97.30 99.25 101.20 102.70 104.25 105.80 107.35 109.05 111.05 112.60 114.15 116.25 117.85 119.85 121.35 122.80
Length (m) 2.00 1.60 1.65 1.35 1.30 2.00 2.00 2.00 1.50 1.55 1.65 1.80 1.70 1.65 2.00 1.10 1.95 1.50 1.40 2.00 1.65 1.95 1.80 1.95 1.95 1.50 1.55 1.55 1.55 1.70 2.00 1.55 1.55 2.10 1.60 2.00 1.50 1.45
Au (ppm) 0.089 0.062 0.015 0.023 0.029 0.125 0.038 0.049 0.016 0.020 0.248 0.085 0.329 0.036 0.130 0.058 0.018 0.582 0.259 0.227 0.381 0.689 1.939 7.450 0.658 1.746 0.690 1.287 0.790 0.401 0.224 2.297 0.248 0.061 0.506 0.066 0.070 0.054
Ag (ppm) 1.5 3.2 1.7 0.5 0.4 5.2 2.6 1.4 0.9 1.1 1.0 0.7 1.6 0.6 3.3 3.0 9.4 10.7 3.0 20.2 7.6 8.7 40.3 25.7 32.8 25.1 7.1 24.4 17.7 6.6 7.8 44.0 9.6 3.7 10.8 1.8 3.1 1.8
Cu (ppm) 29.7 78.1 59.2 16.4 20.2 140.1 81.3 52.8 53.6 38.6 21.2 76.1 251.9 325.4 49.4 305.6 197.3 165.6 84.8 171.0 213.4 98.5 415.2 410.2 332.0 321.1 52.5 227.4 334.1 72.8 141.9 328.4 206.3 353.0 144.3 60.4 133.6 131.2
Pb (ppm) 285.0 31.0 18.0 27.0 19.0 132.0 509.0 48.0 8.0 12.0 7.0 8.0 17.0 7.0 354.0 34.0 1315.0 1927.0 261.0 5621.0 998.0 1885.0 10500.0 4681.0 6421.0 3697.0 938.0 4685.0 2333.0 354.0 374.0 6247.0 269.0 45.0 799.0 61.0 44.0 14.0
Zn (ppm) 262.5 96.3 97.5 61.2 63.7 292.7 750.0 64.0 47.6 71.3 39.2 32.1 36.5 43.7 376.9 75.1 956.9 3379.3 450.9 4646.7 1318.8 1329.9 5678.2 4802.4 4011.3 4258.0 1186.9 8146.1 12100.0 322.3 558.8 7202.5 381.1 74.1 9980.9 72.3 86.4 67.6
February 8, 2011
164
From To (m) (m) 122.80 124.30 0.00 1.90 1.90 3.80 3.80 5.70 5.70 7.50 7.50 9.45 9.45 10.70 10.70 11.90 11.90 13.75 13.75 15.50 15.50 17.45 17.45 19.45 19.45 20.75 20.75 22.05 22.05 24.20 24.20 26.20 26.20 28.20 28.20 30.20 30.20 32.25 32.25 34.25 34.25 36.25 36.25 38.20 38.20 40.20 7.00 9.00 9.00 11.00 11.00 13.00 13.00 14.25 14.25 15.80 15.80 17.50 17.50 18.65 18.65 20.65 20.65 22.65 22.65 24.65 24.65 26.65 26.65 28.65 28.65 30.00 30.00 32.10 32.10 33.00
Length (m) 1.50 1.90 1.90 1.90 1.80 1.95 1.25 1.20 1.85 1.75 1.95 2.00 1.30 1.30 2.15 2.00 2.00 2.00 2.05 2.00 2.00 1.95 2.00 2.00 2.00 2.00 1.25 1.55 1.70 1.15 2.00 2.00 2.00 2.00 2.00 1.35 2.10 0.90
Au (ppm) 0.048 0.059 0.021 0.035 0.031 0.057 0.020 0.024 0.053 0.055 0.043 0.039 0.063 0.037 0.032 0.043 0.047 0.052 0.028 0.046 0.042 0.088 0.035 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Ag (ppm) 3.6 0.6 0.4 0.5 1.0 0.3 0.5 0.4 2.9 3.7 1.5 7.7 3.3 2.3 0.8 2.7 0.6 0.4 0.8 0.6 1.7 1.4 0.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Cu (ppm) 256.7 63.9 31.3 151.9 44.0 63.5 46.2 47.2 164.0 101.3 85.0 96.7 143.2 131.2 78.2 62.2 136.4 108.4 318.7 108.2 113.6 17.4 34.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Pb (ppm) 22.0 19.0 26.0 77.0 43.0 7.0 16.0 11.0 64.0 174.0 62.0 160.0 338.0 173.0 20.0 494.0 11.0 5.0 3.0 7.0 7.0 20.0 10.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Zn (ppm) 63.6 51.5 79.2 81.9 85.7 89.3 67.6 109.6 112.0 191.8 91.4 88.6 100.4 83.8 72.7 147.0 60.3 69.4 75.5 56.5 66.5 56.2 56.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
February 8, 2011
165
From (m) 33.00 34.10 35.30 37.30 38.40 39.65 40.30 42.30 44.30 46.30 48.30 50.30 52.30 54.25 55.35 56.45 57.80 59.85 61.90 64.00 64.75 65.65 66.50 67.90 68.90 70.90 73.00 75.00 76.00 78.05 79.55 80.50 81.60 82.35 83.00 84.00 84.85 86.40
To (m) 34.10 35.30 37.30 38.40 39.65 40.30 42.30 44.30 46.30 48.30 50.30 52.30 54.25 55.35 56.45 57.80 59.85 61.90 64.00 64.75 65.65 66.50 67.90 68.90 70.90 73.00 75.00 76.00 78.05 79.55 80.50 81.60 82.35 83.00 84.00 84.85 86.40 87.95
Length (m) 1.10 1.20 2.00 1.10 1.25 0.65 2.00 2.00 2.00 2.00 2.00 2.00 1.95 1.10 1.10 1.35 2.05 2.05 2.10 0.75 0.90 0.85 1.40 1.00 2.00 2.10 2.00 1.00 2.05 1.50 0.95 1.10 0.75 0.65 1.00 0.85 1.55 1.55
Au (ppm) 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.051 0.035 0.029 0.042 3.452 0.379 0.028 0.063 0.060 0.069 0.035 0.047 0.035 0.069
Ag (ppm) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.8 2.1 4.8 4.8 33.6 5.2 2.2 6.3 7.7 4.8 3.9 5.5 1.2 2.6
Cu (ppm) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 275.6 224.8 264.8 147.3 500.8 139.7 237.3 193.7 294.0 121.3 278.7 272.5 283.6 299.4
Pb (ppm) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 19.0 33.0 28.0 161.0 5306.0 142.0 29.0 50.0 35.0 155.0 210.0 90.0 7.0 44.0
Zn (ppm) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 70.9 449.7 178.3 266.7 12000.0 224.1 222.9 524.9 107.4 215.2 152.1 117.0 88.7 159.7
February 8, 2011
166
From (m) 87.95 88.50 90.15 91.80 92.60 94.10 95.90 97.50 99.50 101.00 102.50 104.10 106.10 147.65 149.40 151.15 152.20 154.00 156.00 158.00 158.95 160.95 162.80 163.85 164.90 165.60 166.75 167.90 169.90 171.50 173.50 175.50 177.50 179.20 180.50 181.80 183.70 185.70
To (m) 88.50 90.15 91.80 92.60 94.10 95.90 97.50 99.50 101.00 102.50 104.10 106.10 108.10 149.40 151.15 152.20 154.00 156.00 158.00 158.95 160.95 162.80 163.85 164.90 165.60 166.75 167.90 169.90 171.50 173.50 175.50 177.50 179.20 180.50 181.80 183.70 185.70 187.00
Length (m) 0.55 1.65 1.65 0.80 1.50 1.80 1.60 2.00 1.50 1.50 1.60 2.00 2.00 1.75 1.75 1.05 1.80 2.00 2.00 0.95 2.00 1.85 1.05 1.05 0.70 1.15 1.15 2.00 1.60 2.00 2.00 2.00 1.70 1.30 1.30 1.90 2.00 1.30
Au (ppm) 2.818 0.221 0.036 0.210 0.176 0.042 0.194 0.018 0.052 0.003 0.019 0.007 0.029 0.010 0.228 0.028 0.035 0.003 0.006 0.008 0.003 0.008 0.008 0.007 0.071 0.006 0.003 0.003 0.006 0.003 0.015 0.556 0.037 0.018 0.012 0.100 0.042 0.006
Ag (ppm) 31.8 7.1 4.1 11.4 12.6 7.2 14.6 1.5 0.7 0.5 0.1 0.6 2.5 0.5 12.9 0.7 1.0 1.8 0.9 0.1 0.1 0.7 0.5 0.8 1.6 0.4 0.4 1.4 2.6 0.3 0.3 13.7 2.1 2.1 1.3 3.7 2.9 0.6
Cu (ppm) 403.4 414.7 373.5 279.9 257.0 403.8 299.7 265.5 227.0 142.2 187.5 120.1 122.0 105.2 216.4 173.3 190.0 193.1 153.9 138.2 37.2 126.7 124.7 81.5 371.1 139.8 175.1 221.8 316.9 114.5 63.8 152.9 95.3 66.8 59.1 97.6 169.1 146.5
Pb (ppm) 4043.0 27.0 10.0 92.0 90.0 25.0 119.0 2.0 7.0 7.0 8.0 8.0 33.0 15.0 1238.0 12.0 18.0 16.0 12.0 9.0 44.0 18.0 10.0 8.0 15.0 8.0 6.0 28.0 22.0 6.0 9.0 2423.0 92.0 58.0 28.0 367.0 84.0 7.0
Zn (ppm) 7781.1 226.9 86.9 66.8 112.9 75.6 175.1 44.8 47.8 38.6 40.7 42.5 87.5 41.6 2064.7 50.3 93.1 54.5 37.0 33.4 48.6 51.7 37.8 47.8 65.7 48.1 44.2 64.6 60.0 49.7 45.2 3770.0 217.5 97.0 65.7 252.1 128.6 78.0
February 8, 2011
167
From (m) 187.00 188.30 190.30 192.30 194.00 196.00 198.00 200.00 202.00 204.00 206.00 208.00 209.30 211.00 213.00 214.10 5.95 7.95 9.95 11.95 13.95 15.95 17.95 3.40 5.40 7.40 9.40 11.40 13.40 15.40 59.20 61.20 62.60 63.85 65.40 76.00 78.00 79.55
To (m) 188.30 190.30 192.30 194.00 196.00 198.00 200.00 202.00 204.00 206.00 208.00 209.30 211.00 213.00 214.10 215.60 7.95 9.95 11.95 13.95 15.95 17.95 19.60 5.40 7.40 9.40 11.40 13.40 15.40 17.40 61.20 62.60 63.85 65.40 67.00 78.00 79.55 80.10
Length (m) 1.30 2.00 2.00 1.70 2.00 2.00 2.00 2.00 2.00 2.00 2.00 1.30 1.70 2.00 1.10 1.50 2.00 2.00 2.00 2.00 2.00 2.00 1.65 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 1.40 1.25 1.55 1.60 2.00 1.55 0.55
Au (ppm) 0.050 0.010 0.010 0.026 1.377 0.031 0.057 0.055 0.010 0.008 0.019 0.115 0.284 0.012 0.029 0.031 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.029 0.030 0.037 0.017 0.013 0.122 0.079 0.033 0.042 0.021 0.041 0.043 0.850 0.033 0.867
Ag (ppm) 3.7 0.9 1.2 1.6 8.4 0.3 2.3 2.5 2.5 0.7 2.1 7.5 8.9 0.7 3.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.3 1.5 1.9 1.8 0.8 1.9 2.0 2.1 1.8 1.5 2.2 1.0 4.9 0.7 10.9
Cu (ppm) 211.4 67.0 118.3 156.8 71.1 84.1 100.0 138.2 88.0 100.1 164.9 234.7 178.3 123.0 136.5 139.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 377.1 348.9 390.8 293.4 286.0 254.7 291.1 184.0 192.9 104.2 191.7 165.5 34.4 125.0 249.6
Pb (ppm) 56.0 17.0 27.0 16.0 1796.0 10.0 76.0 108.0 51.0 17.0 83.0 379.0 702.0 12.0 41.0 4.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 9.0 6.0 10.0 4.0 6.0 9.0 5.0 9.0 14.0 6.0 18.0 3.0 319.0 6.0 412.0
Zn (ppm) 135.6 33.5 42.7 42.9 1535.2 42.3 122.4 106.5 99.1 69.6 80.8 724.1 939.7 53.2 108.0 48.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 106.8 109.7 105.3 91.0 115.4 141.0 79.4 130.0 209.4 46.3 97.3 55.0 286.2 63.5 681.0
February 8, 2011
168
From (m) 80.10 82.10 84.10 86.10 88.10 90.10 92.10 94.10 172.15 174.00 175.65 176.25 178.00 180.00 181.10 182.65 184.50 186.10 188.00 190.00 192.00 194.00 196.00 198.00 199.70 201.00 62.00 64.00 66.00 68.00 70.00 72.00 73.30 75.25 77.20 79.00 81.00 83.00
To (m) 82.10 84.10 86.10 88.10 90.10 92.10 94.10 96.00 174.00 175.65 176.25 178.00 180.00 181.10 182.65 184.50 186.10 188.00 190.00 192.00 194.00 196.00 198.00 199.70 201.00 202.50 64.00 66.00 68.00 70.00 72.00 73.30 75.25 77.20 79.00 81.00 83.00 85.00
Length (m) 2.00 2.00 2.00 2.00 2.00 2.00 2.00 1.90 1.85 1.65 0.60 1.75 2.00 1.10 1.55 1.85 1.60 1.90 2.00 2.00 2.00 2.00 2.00 1.70 1.30 1.50 2.00 2.00 2.00 2.00 2.00 1.30 1.95 1.95 1.80 2.00 2.00 2.00
Au (ppm) 0.073 0.035 0.107 0.027 0.090 0.157 0.030 0.031 0.022 0.069 0.734 0.038 0.100 0.265 0.348 0.041 0.094 0.063 0.022 0.015 0.021 0.037 0.037 0.019 0.007 0.040 0.014 0.012 0.029 0.080 0.010 0.042 0.244 0.020 0.030 0.031 0.012 0.049
Ag (ppm) 2.8 3.6 3.8 1.6 6.8 5.5 2.2 4.4 5.2 13.6 10.9 4.3 6.5 9.7 7.8 0.8 8.3 3.5 4.4 1.4 0.3 0.1 0.6 1.2 0.6 1.1 0.1 0.2 0.6 1.8 0.5 2.1 7.3 1.7 0.6 1.3 0.5 1.6
Cu (ppm) 238.4 227.4 275.9 239.2 365.1 325.1 319.4 392.5 250.3 410.6 328.7 149.3 159.1 91.5 199.9 113.5 238.6 58.9 71.1 94.4 70.8 97.1 114.3 82.5 74.8 65.6 55.2 91.2 169.4 80.5 110.6 177.2 157.7 90.2 132.5 116.7 102.6 85.9
Pb (ppm) 28.0 17.0 28.0 4.0 35.0 118.0 5.0 9.0 18.0 56.0 67.0 54.0 100.0 185.0 336.0 3.0 998.0 170.0 95.0 3.0 2.0 4.0 3.0 99.0 7.0 4.0 7.0 7.0 12.0 48.0 16.0 20.0 278.0 23.0 20.0 13.0 9.0 17.0
Zn (ppm) 89.6 94.4 165.0 82.1 236.3 215.3 65.6 75.8 101.2 146.7 324.4 315.9 212.0 248.1 624.0 48.2 1267.8 259.9 153.5 54.4 71.8 79.7 87.8 209.5 57.6 40.6 39.6 40.8 50.0 126.9 51.4 54.1 485.2 54.8 58.7 53.0 44.8 49.8
February 8, 2011
169
From (m) 85.00 87.00 88.90 90.40 91.80 93.80 95.50 97.10 97.90 99.80 101.00 101.75 102.70 103.60 58.70 60.10 61.45 63.30 65.30 66.90 67.90 69.20 70.55 72.05 73.70 75.00 75.50 77.20 78.90 80.60 82.30 83.95 85.95 86.95 88.30 90.30 92.53 94.40
To (m) 87.00 88.90 90.40 91.80 93.80 95.50 97.10 97.90 99.80 101.00 101.75 102.70 103.60 104.50 60.10 61.45 63.30 65.30 66.90 67.90 69.20 70.55 72.05 73.70 75.00 75.50 77.20 78.90 80.60 82.30 83.95 85.95 86.95 88.30 90.30 92.35 94.40 96.45
Length (m) 2.00 1.90 1.50 1.40 2.00 1.70 1.60 0.80 1.90 1.20 0.75 0.95 0.90 0.90 1.40 1.35 1.85 2.00 1.60 1.00 1.30 1.35 1.50 1.65 1.30 0.50 1.70 1.70 1.70 1.70 1.65 2.00 1.00 1.35 2.00 2.05 1.87 2.05
Au (ppm) 0.009 0.007 0.009 0.024 1.490 0.013 0.062 0.003 14.210 4.581 0.527 0.310 0.384 0.262 0.044 0.035 0.027 0.029 0.049 0.040 0.066 0.049 0.039 0.049 0.080 0.074 0.060 0.117 1.139 0.085 0.081 0.093 0.997 1.584 0.124 0.059 0.046 0.086
Ag (ppm) 0.2 0.5 0.5 2.7 15.7 2.2 7.6 2.2 18.7 38.2 27.0 22.9 8.5 8.7 1.2 0.4 0.5 0.1 0.8 0.6 0.8 0.7 1.0 1.5 3.3 3.2 2.0 3.0 12.4 20.6 7.0 8.5 14.2 32.2 9.8 1.9 2.0 8.4
Cu (ppm) 79.0 199.0 126.3 211.5 323.7 248.7 388.2 356.6 508.9 464.2 338.6 357.4 185.8 106.5 266.8 128.8 37.5 57.4 244.8 133.5 160.1 192.6 192.9 283.1 592.3 599.7 537.6 538.0 397.1 536.0 595.4 454.3 518.8 840.6 414.4 578.0 544.8 501.5
Pb (ppm) 8.0 20.0 17.0 147.0 2572.0 37.0 38.0 32.0 357.0 4024.0 282.0 497.0 601.0 200.0 1.0 1.0 1.0 1.0 1.0 5.0 4.0 4.0 5.0 4.0 4.0 3.0 7.0 10.0 1148.0 133.0 30.0 28.0 252.0 412.0 36.0 17.0 15.0 38.0
Zn (ppm) 58.6 154.2 207.2 637.2 3214.7 533.5 444.9 358.3 921.6 4728.4 262.8 1221.2 477.1 297.6 35.2 37.6 31.4 21.0 29.3 56.2 31.2 50.7 60.0 62.4 79.3 76.0 87.6 59.4 1222.8 192.8 125.5 107.3 559.6 1015.5 195.4 84.5 95.5 126.1
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From (m) 96.45 97.50 99.20 100.80 102.45 104.50 106.60 107.95 108.95 110.55 111.25 113.40 114.70 115.75 116.35 117.95 118.85 119.40 121.25 122.95 124.95 126.95 128.95 2.75 4.75 6.75 8.75 10.75 12.45 14.75 16.30 18.20 19.40 20.60 22.60 24.60 26.50 28.00
To (m) 97.50 99.20 100.80 102.45 104.50 106.60 107.95 108.95 110.55 111.25 113.40 114.70 115.75 116.35 117.95 118.85 119.40 121.25 122.95 124.95 126.95 128.95 130.75 4.75 6.75 8.75 10.75 12.45 14.75 16.30 18.20 19.40 20.60 22.60 24.60 26.50 28.00 29.50
Length (m) 1.05 1.70 1.60 1.65 2.05 2.10 1.35 1.00 1.60 0.70 2.15 1.30 1.05 0.60 1.60 0.90 0.55 1.85 1.70 2.00 2.00 2.00 1.80 2.00 2.00 2.00 2.00 1.70 2.30 1.55 1.90 1.20 1.20 2.00 2.00 1.90 1.50 1.50
Au (ppm) 18.450 0.112 0.092 0.067 0.127 0.163 1.241 0.871 3.089 0.637 1.814 0.806 0.051 0.166 1.630 2.506 7.060 1.532 1.910 0.209 0.043 0.288 0.098 0.020 0.043 0.033 0.107 0.036 0.010 0.014 0.099 0.126 0.101 0.103 0.063 0.091 0.045 0.033
Ag (ppm) 16.6 8.5 5.7 3.7 8.3 11.5 10.4 11.2 11.0 14.7 18.4 12.3 3.7 9.7 25.2 8.4 486.0 10.4 25.7 14.3 2.0 4.4 1.5 3.2 0.6 1.4 14.5 5.8 2.3 2.8 18.6 8.4 13.7 4.8 2.1 1.2 2.1 0.1
Cu (ppm) 309.7 278.6 348.7 307.2 600.6 670.8 318.2 327.0 123.5 287.6 407.7 975.6 1140.9 597.6 657.7 503.0 2506.3 203.7 609.0 614.9 397.2 411.5 496.6 191.8 222.8 215.8 203.3 178.3 108.5 82.8 375.8 1158.9 1415.0 450.9 291.0 419.2 230.5 176.9
Pb (ppm) 713.0 40.0 14.0 21.0 72.0 56.0 75.0 219.0 234.0 40.0 101.0 12.0 26.0 17.0 982.0 45.0 6628.0 395.0 613.0 39.0 7.0 25.0 4.0 3.0 3.0 20.0 11.0 5.0 4.0 2.0 18.0 10.0 2.0 1.0 1.0 1.0 3.0 1.0
Zn (ppm) 678.8 97.8 45.1 57.1 152.9 107.9 141.4 339.7 309.3 37.5 118.8 104.5 120.8 92.3 1306.6 115.4 6216.8 165.1 874.5 140.5 77.1 113.1 65.4 73.7 55.3 50.2 82.7 79.9 79.6 20.6 163.9 257.7 204.3 386.5 523.7 236.7 158.7 76.6
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From (m) 29.50 31.10 32.70 34.45 36.45 38.35 40.35 42.35 44.35 46.05 48.05 50.05 51.50 53.25 55.00 55.60 57.10 58.50 59.30 60.30 62.35 63.20 64.25 64.70 66.20 67.70 69.50 70.35 72.00 74.00 76.00 78.00 80.00 82.00 84.00 86.00 88.00 90.00
To (m) 31.10 32.70 34.45 36.45 38.35 40.35 42.35 44.35 46.05 48.05 50.05 51.50 53.25 55.00 55.60 57.10 58.50 59.30 60.30 62.35 63.20 64.25 64.70 66.20 67.70 69.50 70.35 72.00 74.00 76.00 78.00 80.00 82.00 84.00 86.00 88.00 90.00 92.00
Length (m) 1.60 1.60 1.75 2.00 1.90 2.00 2.00 2.00 1.70 2.00 2.00 1.45 1.75 1.75 0.60 1.50 1.40 0.80 1.00 2.05 0.85 1.05 0.45 1.50 1.50 1.80 0.85 1.65 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Au (ppm) 0.078 0.129 0.042 0.056 0.087 0.047 0.029 0.026 0.013 0.007 0.017 0.018 0.037 0.061 0.046 0.545 0.046 0.037 0.100 0.037 0.045 0.064 0.481 0.009 0.076 0.147 2.622 0.466 0.031 0.033 0.026 0.023 0.022 0.078 0.050 0.017 0.016 0.034
Ag (ppm) 5.0 3.5 5.7 3.6 2.4 1.5 1.3 0.1 0.4 0.4 0.1 0.3 0.1 0.9 0.3 11.9 2.0 5.2 5.0 2.9 1.4 3.3 6.4 0.5 7.7 10.4 154.0 16.6 0.8 1.3 1.2 0.2 0.3 2.2 1.6 1.1 0.9 0.5
Cu (ppm) 286.3 545.6 253.5 298.6 151.3 37.2 29.1 23.2 21.4 24.6 25.8 18.5 22.1 23.4 29.6 434.5 104.2 308.9 197.3 288.9 379.8 276.9 329.3 144.3 253.9 297.9 264.0 241.1 148.6 263.2 277.8 173.1 225.7 596.3 508.0 159.5 127.9 119.6
Pb (ppm) 1.0 2.0 18.0 4.0 6.0 4.0 2.0 3.0 5.0 5.0 3.0 4.0 7.0 19.0 17.0 32.0 33.0 36.0 29.0 9.0 10.0 14.0 72.0 4.0 27.0 51.0 1090.0 204.0 12.0 8.0 10.0 1.0 6.0 35.0 4.0 6.0 4.0 1.0
Zn (ppm) 143.6 161.5 87.5 244.7 140.5 118.1 130.3 99.1 144.9 95.5 91.2 83.5 91.2 88.7 85.3 225.1 147.0 141.5 53.8 58.4 54.5 85.9 108.0 58.8 76.6 88.9 530.0 749.8 50.2 61.0 98.4 48.5 38.8 59.8 39.0 52.9 35.2 28.9
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From (m) 92.00 94.00 96.00 98.00 100.00 102.00 104.00 106.00 107.90 109.10 110.10 111.15 112.70 113.95 115.30 116.90 118.45 120.50 121.00 122.60 124.60 125.80 127.30 128.80 130.80 132.80 134.10 136.55 137.45 139.45 141.45 143.45 144.95 146.15 147.35 0.00 2.00 4.00
To (m) 94.00 96.00 98.00 100.00 102.00 104.00 106.00 107.90 109.10 110.10 111.15 112.70 113.95 115.30 116.90 118.45 120.50 121.00 122.60 124.60 125.10 127.30 128.80 130.80 132.80 134.10 135.70 137.45 139.45 141.45 143.45 144.95 146.15 147.35 148.65 2.00 4.00 6.00
Length (m) 2.00 2.00 2.00 2.00 2.00 2.00 2.00 1.90 1.20 1.00 1.05 1.55 1.25 1.35 1.60 1.55 2.05 0.50 1.60 2.00 0.50 1.50 1.50 2.00 2.00 1.30 1.60 0.90 2.00 2.00 2.00 1.50 1.20 1.20 1.30 2.00 2.00 2.00
Au (ppm) 0.024 0.062 0.012 0.018 0.018 0.015 0.021 0.084 0.541 0.144 1.309 1.296 1.017 0.175 0.144 0.086 0.341 0.065 0.159 0.956 3.013 0.156 0.037 0.783 2.067 1.170 2.393 2.206 0.596 0.054 0.090 0.023 0.147 0.016 0.019 0.038 0.038 0.031
Ag (ppm) 0.9 2.5 0.3 0.8 0.8 1.2 1.2 1.7 3.9 4.0 6.4 7.7 4.7 4.9 3.7 6.0 3.0 3.9 4.5 13.8 9.7 3.8 4.5 6.8 8.1 8.3 25.3 10.0 6.0 9.8 2.8 6.4 2.8 0.5 0.5 1.0 0.6 0.5
Cu (ppm) 226.3 532.8 171.0 278.1 270.0 207.4 260.7 188.9 98.8 122.7 104.3 184.8 166.0 161.9 107.8 142.5 93.1 153.5 142.1 161.1 175.1 145.4 186.9 151.3 175.0 179.5 263.7 138.9 158.7 159.9 131.9 120.0 94.7 96.6 112.1 47.1 99.1 80.0
Pb (ppm) 2.0 29.0 1.0 3.0 3.0 3.0 3.0 1.0 8.0 4.0 41.0 7.0 5.0 5.0 12.0 11.0 7.0 6.0 24.0 2445.0 162.0 124.0 64.0 20.0 60.0 232.0 3283.0 240.0 95.0 36.0 29.0 36.0 63.0 7.0 3.0 6.0 2.0 13.0
Zn (ppm) 27.7 54.3 29.4 35.5 29.0 26.0 29.6 31.1 27.4 27.2 41.8 42.0 27.4 40.2 36.5 34.5 32.4 47.5 49.2 1839.2 160.1 68.9 148.2 58.8 262.3 748.1 4680.0 519.4 134.9 68.1 64.7 92.4 130.3 58.4 42.4 91.5 79.2 124.3
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From (m) 6.00 8.00 9.40 11.00 12.65 14.60 16.50 18.40 20.40 22.40 89.70 91.70 92.45 93.40 95.40 97.40 99.40 101.40 103.40 105.40 107.40 109.40 111.40 113.05 114.80 115.90 117.90 119.90 121.90 123.40 125.30 126.80 128.80 130.80 132.80 134.40 136.25 138.00
To (m) 8.00 9.40 11.00 12.65 14.60 16.50 18.40 20.40 22.40 24.40 91.70 92.45 93.40 95.40 97.40 99.40 101.40 103.40 105.40 107.40 109.40 111.40 113.05 114.80 115.90 117.90 119.90 121.90 123.40 125.30 126.80 128.80 130.80 132.80 134.40 136.25 138.00 139.95
Length (m) 2.00 1.40 1.60 1.65 1.95 1.90 1.90 2.00 2.00 2.00 2.00 0.75 0.95 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 1.65 1.75 1.10 2.00 2.00 2.00 1.50 1.90 1.50 2.00 2.00 2.00 1.60 1.85 1.75 1.95
Au (ppm) 0.094 0.051 0.044 0.050 0.117 0.076 0.058 0.068 0.075 0.038 0.035 1.005 0.217 0.157 0.064 0.031 0.031 0.814 0.101 0.029 0.054 0.348 0.309 0.090 0.968 0.037 0.054 0.036 0.014 0.096 0.040 0.037 0.027 0.028 0.021 0.017 0.059 0.029
Ag (ppm) 0.6 0.4 0.5 1.0 1.8 1.4 1.0 1.0 0.3 0.3 1.6 53.6 16.0 4.8 2.2 2.0 0.8 0.4 0.7 0.1 0.1 20.2 3.5 0.6 107.0 1.8 5.8 1.3 1.2 4.9 2.1 0.9 0.9 0.1 0.1 0.3 7.0 0.3
Cu (ppm) 186.9 123.7 40.9 74.9 70.3 45.2 9.4 0.7 7.5 8.0 171.3 102.3 263.1 169.9 146.1 126.1 70.6 96.9 168.1 90.0 74.8 402.9 90.5 102.8 259.4 46.7 128.0 65.5 33.3 80.2 72.0 76.0 72.6 85.0 89.2 139.6 100.0 69.4
Pb (ppm) 12.0 6.0 14.0 85.0 109.0 102.0 135.0 86.0 20.0 14.0 8.0 1165.0 530.0 213.0 12.0 12.0 8.0 4.0 5.0 4.0 4.0 81.0 210.0 3.0 1315.0 10.0 427.0 4.0 6.0 18.0 8.0 4.0 8.0 6.0 8.0 5.0 5.0 4.0
Zn (ppm) 143.1 128.0 124.0 221.4 349.5 403.9 47.7 67.1 52.7 47.9 90.0 356.2 438.6 448.8 55.5 30.8 32.8 25.0 74.2 46.8 40.3 183.1 465.3 41.6 2267.5 23.0 36.4 23.1 23.7 139.0 31.7 24.1 36.5 60.6 61.9 83.4 44.7 33.1
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Drill Hole GDH17 GDH17 GDH17 GDH17 GDH17 GDH17 GDH17
Sample Number A009133 A009134 A009135 A009136 A009137 A009138 A009139
From (m) 139.95 141.90 143.90 145.50 147.50 149.50 151.50
To (m) 141.90 143.90 145.50 147.50 149.50 151.50 153.40
Length (m) 1.95 2.00 1.60 2.00 2.00 2.00 1.90
Au (ppm) 0.020 0.016 0.010 0.039 0.032 0.025 0.034
Ag (ppm) 0.2 0.1 0.1 0.1 0.1 0.6 0.1
Cu (ppm) 84.5 59.4 68.8 79.6 81.6 76.6 79.5
Pb (ppm) 2.0 1.0 1.0 1.0 2.0 3.0 3.0
Zn (ppm) 46.7 53.9 73.4 59.8 39.1 37.4 104.3
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Appendix 5. MGC Drill Core Assays

Sample Drill Hole MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 Number MG-1044 MG-1045 MG-1046 MG-1047 MG-1048 MG-1049 MG-1032 MG-1033 MG-1034 MG-1035 MG-1036 MG-1037 MG-1038 MG-1039 MG-1041 MG-1042 MG-1043 MG-1050 MG-1051 MG-1053 MG-1054 MG-1055 MG-1056 MG-1057 MG-1058 MG-1059 MG-1061 MG-1062 MG-1063 MG-1064 MG-1065 MG-1066 MG-1067 From (m) 8.4 10.8 12.6 15 16.8 18.8 20.8 22.8 25.8 28.8 31.7 33.8 36.1 38.9 41.6 42.5 43.8 48 52 56 58 62 66 68 70 72 74 76 78 80 82 84 92 To (m) 10.8 12.6 15 16.8 18.8 20.8 22.8 25.8 28.8 31.7 33.8 36.1 38.9 41.6 42.5 43.8 46 50 54 58 60 64 68 70 72 74 76 78 80 82 84 86 94 Length (m) 2.4 1.8 2.4 1.8 2 2 2 3 3 2.9 2.1 2.3 2.8 2.7 0.9 1.3 2.2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Au (ppm) 0.169 0.132 0.062 0.076 0.049 0.278 0.751 0.898 0.13 6.985 0.381 0.334 0.374 0.075 10.3 0.042 0.054 0.07 0.118 0.941 0.132 0.174 0.073 0.106 0.101 0.056 0.484 0.041 0.045 0.062 0.218 0.152 0.077 Ag (ppm) 10 10 3 7 2 9 14 12 11 134 9 4 17 8 38 5 6 2 2 9 4 17 5 4 2 2 6 2 2 2 7 3 2 Cu (ppm) 628 582 454 610 439 483 272.03 201.45 294.66 429.77 300.8 562.84 341 354.24 244.27 265.64 690.93 716 1261 891 657 1014 977 452 676 347 448 223 235 421 381 310 328 Pb (ppm) 125 854 150 234 290 999 301.88 224.99 239.43 38400 128.05 18.24 134.09 80.33 4428.03 20.03 51.92 9 5 183 25 95 17 17 6 4 316 6 4 6 117 6 8 Zn (ppm) 69 405 340 428 1314 172 165.7 84.5 546 14300 370.3 124.1 142.9 134.1 5587.2 94.4 377.3 61 73 71 71 153 75 48 46 56 755 30 38 62 1021 42 31
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Sample Drill Hole MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01 MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-01A MGDH-02 MGDH-02 Number MG-1068 MG-1069 MG-1071 MG-1072 MG-1073 MG-1001 MG-1002 MG-1003 MG-1004 MG-1005 MG-1006 MG-1007 MG-1008 MG-1009 MG-1011 MG-1012 MG-1013 MG-1014 MG-1015 MG-1016 MG-1017 MG-1018 MG-1019 MG-1020 MG-1021 MG-1022 MG-1023 MG-1025 MG-1026 MG-1027 MG-1028 MG-1029 MG-1031 MG-1074 MG-1075
From (m) 106 110 112 114 116 6.6 8 10 12.05 14 16 18 20 22 24 25.5 28.35 30 32 34 37.5 40.5 42 44 46 48 50 52 58 68 70 72 74 7 9.3
To (m) 108 112 114 116 117.5 8 10 12.05 14 16 18 20 22 24 25.5 28.35 30 32 34 37.5 40.5 42 44 46 48 50 52 54 60 70 72 74 76.6 9.3 12.35
Length (m) 2 2 2 2 1.5 1.4 2 2.05 1.95 2 2 2 2 2 1.5 2.85 1.65 2 2 3.5 3 1.5 2 2 2 2 2 2 2 2 2 2 2.6 2.3 3.05
Au (ppm) 0.036 0.039 0.092 0.025 0.24 0.068 0.221 0.088 0.019 0.028 0.036 0.045 0.295 0.3 2.414 0.271 0.116 3.971 1.373 0.547 1.285 0.024 6.595 0.057 0.108 0.047 0.21 0.083 0.05 0.054 0.123 0.058 0.072 0.085 0.061
Ag (ppm) 2 2 5 2 5 16 8 3 3 5 7 3 9 14 8 6 2 3 2 7 17 2 68 3 9 2 13 3 2 2 6 4 189 9 5
Cu (ppm) 316 171 322 269 305 274.68 532.08 458.49 220.21 489.14 652.32 537.3 509.43 398.88 182.77 118.88 38.52 33.25 39.25 227.44 212.05 185.79 503.44 563.24 1124.56 475.6 1335.86 1012.18 476.49 447.41 770.5 370.65 936.33 389 316
Pb (ppm) 11 9 105 17 36 241.78 475.37 142.48 115.91 154.61 414.96 550.62 692.55 136.8 775.78 565.58 195.41 138.15 53.25 55.28 360.17 7.36 12300 17.1 64.86 9.92 275.29 3.83 13.99 3.61 74.71 11.75 86.07 173 58
Zn (ppm) 44 21 33 125 154 153.5 112.7 78.7 72.6 665.3 1047.9 1402.1 508.3 207 776.7 981.1 75.5 191.9 68.9 79.8 235.7 76.6 3545.9 128.5 224.2 53.1 1438.8 44.7 60.1 45.5 139.8 34.5 62.5 185 100
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Drill Hole MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02 MGDH-02
Sample MG-1076 MG-1077 MG-1078 MG-1079 MG-1080 MG-1082 MG-1083 MG-1084 MG-1085 MG-1086 MG-1087 MG-1088 MG-1089 MG-1091 MG-1092 MG-1093 MG-1094 MG-1095 MG-1096 MG-1097 MG-1098 MG-1099 MG-1101 MG-1102 MG-1103 MG-1104 MG-1105 MG-1106 MG-1107 MG-1108 MG-1109 MG-1110 MG-1112 MG-1113 MG-1114 MG-1115
From (m) 12.35 13.8 22 24 28 32 34 36 42 48 50 56 62 64 68 70 72 74 76 78 80 82 84 86 88 94.8 102 104 106 108 110 126 136 160 162 164
To (m) 13.8 16 24 26 30 34 36 38 44 50 52 58 64 66 70 72 74 76 78 80 82 84 86 88 90 96.8 104 106 108 110 112 128 138 162 164 166
Length 1.45 2.2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Au (ppm) 0.148 0.122 0.043 0.087 0.051 0.079 0.041 0.048 0.034 0.038 0.429 0.058 0.043 0.077 0.147 3.65 0.342 0.197 0.371 0.09 0.159 0.07 0.084 0.056 0.082 0.027 0.068 0.021 0.084 0.686 0.796 0.055 0.02 0.045 0.025 0.035
Ag (ppm) 5 7 2 2 2 2 2 2 3 4 6 2 4 9 14 29 38 9 22 2 2 2 2 2 2 2 2 2 2 4 10 2 2 2 2 2
Cu (ppm) 1819 540 339 288 347 286 375 271 367 650 393 465 296 266 594 515 1454 291 858 335 431 256 408 508 519 662 534 318 357 378 338 252 27 121 293 199
Pb (ppm) 25 164 17 15 59 16 18 33 18 20 53 15 23 43 57 3061 190 54 105 13 12 9 4 6 8 3 4 3 5 24 47 5 3 8 21 6
Zn (ppm) 95 207 117 118 420 122 196 113 88 88 62 69 48 75 68 2785 92 63 105 49 38 49 63 71 45 52 65 51 41 75 85 43 47 49 62 28
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178
From (m) 166 168 170 172 174 176 178 180 188 197 199 201 203 211.5 214.2 215.6 237.5 239.5 241.5 244 258 262 272 278 280 282 284 286 298 0 2 5 6.55 8 11 14
To (m) 168 170 172 174 176 178 180 182 190 199 201 203 205 214.2 215.6 218.3 239.5 241.5 243.5 246 260 264 274 280 282 284 286 288 300.5 2 5 6.55 8 11 14 15.3
Length 2 2 2 2 2 2 2 2 2 2 2 2 2 2.7 1.4 2.7 2 2 2 2 2 2 2 2 2 2 2 2 2.5 2 3 1.55 1.45 3 3 1.3
Au (ppm) 0.022 0.029 0.037 0.043 0.065 0.061 0.015 0.034 0.016 0.067 0.034 0.019 0.033 0.58 0.062 0.08 0.017 0.033 0.014 0.068 0.053 0.184 0.085 0.466 0.152 0.732 0.058 0.083 0.071 0.086 0.716 0.176 0.008 0.036 0.035 0.104
Ag (ppm) 2 2 2 2 11 2 2 2 2 2 2 2 2 3 2 2 2 2 2 2 2 2 2 10 3 10 2 2 2 2 2 2 2 2 2 2
Cu (ppm) 247 183 217 186 400 154 227 171 107 222 243 245 176 156 169 178 209 129 229 304 284 360 150 349 299 327 419 284 356 52 49 60 30 18 20 28
Pb (ppm) 9 5 5 4 249 7 11 8 15 32 14 26 3 879 9 7 5 17 4 6 5 5 6 84 13 2205 99 5 6 311 1278 43 23 32 38 114
Zn (ppm) 37 27 37 28 438 25 37 31 42 127 45 80 26 398 36 39 33 40 54 53 49 62 48 59 60 3172 142 38 51 66 73 323 413 264 529 252
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179
From (m) 15.3 17 20 23 25.7 27.3 29 32 35 36.6 38 39 41 43 45 52 54 56 58 60 62 64 66 68 70 72 74 76 78 86 88 90 92 94 96 98
To (m) 17 20 23 25.7 27.3 29 32 35 36.6 38 39 41 43 45 47 54 56 58 60 62 64 66 68 70 72 74 76 78 80 88 90 92 94 96 98 100
Length 1.7 3 3 2.7 1.6 1.7 3 3 1.6 1.4 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Au (ppm) 0.031 0.088 0.116 0.234 0.031 0.152 0.037 0.045 0.052 0.167 0.095 0.091 0.644 0.234 0.483 0.075 0.07 0.046 0.018 0.046 0.034 0.037 0.036 0.038 0.015 0.079 0.046 0.07 0.267 0.063 0.059 0.038 0.05 0.024 0.059 0.052
Ag (ppm) 2 4 3 7 9 6 3 4 3 2 2 8 11 5 22 2 2 2 2 2 2 2 2 3 2 2 2 2 2 2 2 2 2 2 2 2
Cu (ppm) 27 30 38 58 26 35 23 24 54 70 136 110 94 116 65 74 120 76 22 77 25 39 63 74 17 37 84 191 174 34 76 26 134 27 111 67
Pb (ppm) 48 182 61 1589 74 642 26 15 94 131 248 432 1407 448 1142 259 46 44 14 6 9 13 45 275 70 12 13 12 9 15 12 19 10 11 8 17
Zn (ppm) 365 331 342 207 177 218 161 115 140 105 160 156 154 170 148 237 215 309 98 43 53 52 57 320 251 50 55 50 38 36 55 36 40 33 42 35
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180
From (m) 100 102 104 106 108 110 112 114 116 118 120 122 124 126 133 135 136 138 140 142 144 146 148 151 154 156 158 164 170 172 174 176 178 182 184 185
To (m) 102 104 106 108 110 112 114 116 118 120 122 124 126 128 135 136 138 140 142 144 146 148 150 152 156 158 160 166 172 174 176 178 180 184 185 186
Length 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 2 2 2 2 2 2 2 1 2 2 2 2 2 2 2 2 2 2 1 1
Au (ppm) 0.147 0.057 0.05 0.061 0.03 0.023 0.022 0.021 0.02 0.021 0.022 0.023 0.023 0.087 0.044 0.14 0.022 0.037 0.058 0.039 0.079 0.043 0.027 0.058 0.023 0.019 0.033 0.02 0.07 0.391 0.081 0.05 0.22 0.118 1.109 0.079
Ag (ppm) 2 2 2 2 2 2 2 2 2 2 2 2 2 4 3 14 2 2 2 2 3 2 2 2 2 2 2 2 5 7 5 8 4 2 24 8
Cu (ppm) 346 121 153 285 72 63 171 86 82 83 29 47 48 118 88 41 79 164 145 121 192 97 49 22 42 122 125 95 267 318 204 264 237 260 268 236
Pb (ppm) 7 8 9 24 21 13 13 18 12 9 19 8 27 35 140 3940 14 40 16 13 114 9 5 24 9 9 9 10 59 1254 51 1287 397 69 1916 31
Zn (ppm) 38 39 38 45 32 34 29 54 36 34 41 23 49 72 161 183 51 65 45 41 39 30 34 41 37 64 40 22 80 829 106 891 143 106 1413 70
February 8, 2011
181
From (m) 186 188 190 193 194 195 196.2 197.4 199 201 203 204 206 208 209 210.8 212.7 215.2 215.7 218 219.7 222 224 226 228 240 242 244 246 248 249.7 252 256 258 260 262
To (m) 188 190 192 194 195 196.2 197.4 199 201 203 204 206 208 209 210.8 212.7 215.2 215.7 218 219.7 222 224 226 228 230 242 244 246 248 249.7 252 254 258 260 262 264
Length 2 2 2 1 1 1.2 1.2 1.6 2 2 1 2 2 1 1.8 1.9 2.5 0.5 2.3 1.7 2.3 2 2 2 2 2 2 2 2 1.7 2.3 2 2 2 2 2
Au (ppm) 0.02 0.017 0.05 0.449 0.23 0.2 0.132 0.134 0.247 0.149 0.281 2.425 0.97 0.698 0.165 0.711 1.62 0.283 0.09 0.15 0.349 0.06 0.574 0.042 0.038 0.027 0.033 0.293 0.196 0.097 0.19 0.093 0.063 0.026 0.417 0.03
Ag (ppm) 2 3 2 6 2 6 12 11 8 300 300 28 9 18 5 10 19 23 7 7 11 8 10 5 5 3 3 4 5 6 6 3 2 3 2 2
Cu (ppm) 234 260 178 187 86 123 294 300 281 1156 6131 497 194 225 197 297 438 404 727 328 173 172 186 116 120 363 281 224 267 264 294 403 298 277 197 182
Pb (ppm) 22 24 28 797 103 151 170 197 597 500 494 6634 968 1291 50 560 3177 1196 62 64 468 2027 2151 177 96 13 14 261 615 196 380 23 8 24 15 18
Zn (ppm) 104 85 69 749 110 190 312 392 764 693 719 8134 1332 765 134 698 4060 2065 319 207 418 788 867 191 117 69 80 258 2218 416 652 63 42 51 43 47
February 8, 2011
182
From (m) 264 266 268 270 272 274 276 278 280 281 283 285 287.5 290 292.6 294 296 298 300 302 304 306 308 310 312 314 316 318 320 322 324 326 328 330 332 334
To (m) 266 268 270 272 274 276 278 280 281 283 285 287.5 290 292.6 294 296 298 300 302 304 306 308 310 312 314 316 318 320 322 324 326 328 330 332 334 336
Length 2 2 2 2 2 2 2 2 1 2 2 2.5 2.5 2.6 1.4 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Au (ppm) 0.006 0.028 0.017 0.047 0.015 0.183 0.053 0.008 0.098 0.039 0.081 0.164 0.048 0.504 0.043 0.095 0.104 0.267 0.262 0.042 0.023 0.107 1.162 0.842 0.056 0.054 0.033 0.025 0.01 0.085 0.154 0.035 0.011 0.021 0.038 0.421
Ag (ppm) 2 2 3 4 2 5 3 2 2 3 6 4 2 22 4 8 6 8 8 4 2 5 15 40 6 5 2 2 2 2 2 2 2 2 2 4
Cu (ppm) 191 245 206 205 227 164 184 184 162 292 430 338 235 318 191 362 777 500 273 364 212 332 602 753 418 243 338 335 249 294 204 218 332 301 273 257
Pb (ppm) 3 12 10 36 17 99 54 7 26 13 28 19 7 198 45 92 7 790 136 39 13 347 860 2475 53 63 11 6 4 78 5 4 5 4 51 118
Zn (ppm) 44 46 76 138 88 178 138 57 50 49 81 52 43 397 105 128 62 1326 273 96 89 370 761 10100 76 122 59 47 79 141 35 40 47 43 99 102
February 8, 2011
183
From (m) 336 338 340 342 344 346 348 350 352 354 356 358 374 376 378 380 382 384 386 388 390 392 394 396 398 400 402 404 406 408 410 412 414 416 418 420
To (m) 338 340 342 344 346 348 350 352 354 356 358 360 376 378 380 382 384 386 388 390 392 394 396 398 400 402 404 406 408 410 412 414 416 418 420 422
Length 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Au (ppm) 0.1 0.054 0.033 0.014 0.03 0.064 0.115 0.013 0.059 0.552 0.016 0.038 0.216 0.816 0.955 0.078 0.114 0.117 0.074 0.013 0.484 0.037 0.367 0.031 0.097 0.048 0.032 0.02 0.018 0.035 0.126 0.064 0.031 0.476 0.225 0.063
Ag (ppm) 6 3 2 2 2 2 2 2 2 3 2 2 8 12 8 2 2 5 2 2 9 2 2 2 2 3 2 2 2 2 2 2 2 2 2 2
Cu (ppm) 219 208 165 205 264 190 198 215 260 311 235 231 417 311 246 277 380 650 240 143 290 136 104 128 140 155 114 159 120 170 309 210 136 149 292 199
Pb (ppm) 140 115 16 13 20 4 16 7 5 375 5 25 160 828 665 5 3 113 5 3 1083 9 223 15 65 43 4 23 5 6 14 11 3 11 3 3
Zn (ppm) 149 132 48 41 54 43 49 37 65 1123 36 64 255 691 601 44 41 90 47 38 862 41 495 56 108 90 43 47 47 35 74 44 53 60 45 41
February 8, 2011
184
From (m) 422 424 426 428 430 432 434 436 438 440 442 444 446 448 450 452 454 456 458 460 462 464 466 468 470 472 474 476 478 480 482 484 486 488 490 492
To (m) 424 426 428 430 432 434 436 438 440 442 444 446 448 450 452 454 456 458 460 462 464 466 468 470 472 474 476 478 480 482 484 486 488 490 492 494
Length 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Au (ppm) 0.081 0.027 0.091 0.027 0.073 0.069 0.115 0.195 0.129 0.079 0.049 0.026 0.045 0.064 0.087 0.054 0.076 0.08 0.052 0.829 0.067 0.202 0.1 0.186 0.126 0.097 0.287 0.164 0.118 0.115 0.482 0.167 0.135 0.051 0.066 0.116
Ag (ppm) 2 2 2 2 2 2 2 2 2 2 2 2 2 3 2 7 4 2 2 5 3 2 2 2 2 2 2 2 2 5 2 2 2 2 2 2
Cu (ppm) 281 156 214 246 336 320 421 467 339 384 309 221 243 273 226 252 222 175 192 254 350 328 226 239 262 195 247 304 338 362 198 152 159 166 243 227
Pb (ppm) 37 3 3 3 3 5 4 3 5 3 3 5 9 27 19 162 51 4 4 632 12 6 9 3 3 3 3 3 5 942 3 3 3 3 3 21
Zn (ppm) 70 34 34 35 46 39 43 47 47 67 44 52 45 69 75 305 93 36 45 302 55 51 51 33 41 33 34 34 37 3826 34 33 26 37 35 72
February 8, 2011
185
From (m) 494 496 498 500 502 504 506 508 510 512 514 516 518 520 522 524 526 528 530 532 534 536 538 540 542 544 546 548 550 552 554 556 558 560 562 564
To (m) 496 498 500 502 504 506 508 510 512 514 516 518 520 522 524 526 528 530 532 534 536 538 540 542 544 546 548 550 552 554 556 558 560 562 564 566
Length 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Au (ppm) 0.037 0.099 1.889 0.899 0.911 3.902 0.027 0.071 0.11 0.28 0.177 0.099 0.04 0.023 0.027 0.067 0.033 0.086 0.058 0.008 0.012 0.022 0.007 0.015 0.009 0.028 0.088 0.011 0.016 0.022 0.023 0.006 0.008 0.013 0.011 0.016
Ag (ppm) 2 2 3 2 2 3 2 2 2 2 2 3 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Cu (ppm) 233 273 293 235 302 427 214 231 168 197 174 223 181 159 206 177 139 129 124 76 108 124 93 88 92 129 111 92 93 121 108 153 160 156 113 127
Pb (ppm) 5 3 8 19 5 9 3 3 3 9 31 829 11 8 30 105 3 53 34 3 3 9 3 20 17 33 163 6 10 48 12 10 7 16 17 73
Zn (ppm) 28 27 31 35 36 46 31 38 28 33 51 578 42 37 103 289 29 63 71 38 30 37 28 56 39 100 124 33 34 57 43 34 31 41 47 115
February 8, 2011
186
Drill Hole MGDH-03 MGDH-03 MGDH-03 MGDH-03 MGDH-03 MGDH-03 MGDH-03 MGDH-03 MGDH-03 MGDH-03 MGDH-03 MGDH-03 MGDH-03 MGDH-03 MGDH-03 MGDH-03 MGDH-03 MGDH-03 MGDH-03 MGDH-03 MGDH-03 MGDH-03 MGDH-03 MGDH-03 MGDH-03 MGDH-03 MGDH-03
Sample MG-1416 MG-1417 MG-1418 MG-1419 MG-1421 MG-1422 MG-1423 MG-1424 MG-1425 MG-1426 MG-1427 MG-1428 MG-1429 MG-1431 MG-1432 MG-1433 MG-1434 MG-1435 MG-1436 MG-1437 MG-1438 MG-1439 MG-1441 MG-1442 MG-1443 MG-1444 MG-1445
From (m) 566 568 570 572 574 576 578 580 582 584 586 588 590 592 594 596 598 600 602 604 606 608 610 612 614 616 618
To (m) 568 570 572 574 576 578 580 582 584 586 588 590 592 594 596 598 600 602 604 606 608 610 612 614 616 618 620
Length 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Au (ppm) 0.018 0.026 0.03 0.332 0.14 0.078 0.057 0.02 0.013 0.056 0.037 0.086 0.017 0.126 0.03 0.043 0.011 0.016 0.025 0.045 0.108 0.009 0.04 0.063 0.037 0.012 0.015
Ag (ppm) 2 2 2 4 4 2 2 2 2 2 2 4 2 6 2 2 2 2 2 2 2 2 2 2 2 2 2
Cu (ppm) 115 137 97 88 186 148 119 192 154 147 165 231 102 183 96 72 106 106 119 94 74 72 62 52 91 103 83
Pb (ppm) 21 53 33 1132 294 88 6 16 10 13 61 14 12 1849 282 107 5 3 5 35 45 9 4 11 22 3 3
Zn (ppm) 35 90 116 1149 350 133 36 42 31 28 85 38 64 3637 382 156 32 26 29 143 97 36 30 54 71 30 28
February 8, 2011
187

Guayabales NI 43-101 Technical Report Dated February 8, 2011

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Guayabales NI 43-101 Technical Report Dated February 8, 2011

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Guayabales Project Technical Report

Effective Date: February 8, 2011

Dean D. Turner, C.P.G. Exploration Geotechnologies Inc. Littleton, Colorado USA

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

22.0 23.0 24.0 25.0 App. 1 App. 2 App. 3 App. 4 App. 5

116 119 123 124 125 130 133 148 178

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

93 95 96 96 99 99 103 104 114 115

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

INTRODUCTION TERMS OF REFERENCE

MERCER GOLD CORPORATION

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

RELIANCE ON OTHER EXPERTS

MERCER GOLD CORPORATION

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

PROPERTY HISTORY HISTORICAL COLOMBIAN GOLD PRODUCTION

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

Figure 9.1. Guayabales Regional Geology.

MERCER GOLD CORPORATION

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

Figure 9.2. Guayabales and Marmato District Geology.

MERCER GOLD CORPORATION

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

Figure 9.3. Guayabales Property Geology.

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

Total Approved Expenditures

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

1.00 0.19 0.34 0.09 0.32 0.19 0.31

1.00 0.48 0.66 0.37 0.37 0.29

1.00 0.53 0.30 0.31 0.32

1.00 0.32 0.35 0.07

1.00 0.22 0.39

Figure 12.1. MGC Soil Sample Locations and Gold Anomalies.

SW Target (also see Arsenic Map)

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

Figure 12.4. MGC Rock Sample Locations and Gold Anomalies.

NE Zone Porphyry Samples Portada & Mill Zones

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

Location Map Showing CG Sample Au Results.

MERCER GOLD CORPORATION

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

Figure 12.8. Location Map Showing CG Sample Ag Results.

MERCER GOLD CORPORATION

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia