Guayabales NI 43-101 Technical Report Dated June 17, 2010

Guayabales Project Technical Report
Department of Caldas Republic of Colombia Latitude: 5.48o North Longitude: 75.61o West
Effective Date: June 17, 2010
Dean D. Turner, C.P.G. Exploration Geotechnologies Inc. Littleton, Colorado USA
TABLE OF CONTENTS Section Pg. 3.0 SUMMARY. 1 4.0 INTRODUCTION... 4 4.1 Terms of Reference............................................. 4 4.2 Information Used..................................... 5 5.0 RELIANCE ON OTHER EXPERTS.................... 7 6.0 PROPERTY LOCATION AND DESCRIPTION... 8 6.1 Property Location.... 8 6.2 Colombian Mineral Tenure and Royalties....... 10 6.2.1 2201 Mining Law.. 11 6.2.2 2201 Law 1382.. 15 6.3 MGC Obligations..................................................... 15 6.3.1 Subject to Underlying Option Agreement.. 15 6.3.2 Subject to Mineral Assets Option Agreement.. 16 6.4 Property Boundary and Location of Mineralized Zones and Mine 17 Workings........ 6.5 Environmental Liabilities and Permits to Conduct Work...... 17 18 7.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY... 8.0 PROPERTY HISTORY...... 20 8.1 Historical Colombian Gold Production. 20 8.2 History of the Guayabales Project..... 20 9.0 GEOLOGIC SETTING.. 21 9.1 Regional and District Scale Geology.. 21 9.2 Property Geology.. 26 10.0 DEPOSIT TYPES.... 29 11.0 MINERALIZATION 30 12.0 EXPLORATION.. 33 12.1 Previous Exploration Encanto Mine Area Colombia 34 Gold.. 12.2 Previous Exploration Encanto Mine Colombian Mines 37 Corporation 12.3 Comments on Combined CG and CMC Encanto Mine Area 38 Sampling Results 12.4 Colombian Mines Corporation Surface Exploration In Recently 42 Discovered Road Cut Gold Zones.. 13.0 DRILLING.. 46 14.0 SAMPLING METHOD AND APPROACH.. 55 15.0 SAMPLE PREPARATION, ANALYSIS, AND SECURITY 57 15.1 Colombian Mines Corporation Samples. 57 15.2 Colombian Mines Corporation QA/QC Program. 58 15.3 Drill Hole QA/QC Results . 61 16.0 DATA VERIFICATION.... 64 16.1 Independent QP Data Verification.. 64
June 17, 2010 MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia
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18.0
19.0 20.0 21.0 22.0 23.0 24.0 25.0 App. 1 App. 2 App. 3
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 Drill Assay Database Audit.... 16.3 Independent Data Verification by Thompson..... 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 Historical Mining Titles and Consolidation of the Marmato District 17.7 Current Activities at Marmato.... 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 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATION.. OTHER RELEVANT DATA AND INFORMATION.... INTERPRETATION AND CONCLUSIONS.... RECOMMENDATIONS..... REFERENCES..... CERTIFICATE OF AUTHOR..... DATE AND SIGNATURE PAGE ...... Legal Opinion on Guayabales Property License LH # 0071-17.. Mining Law 1382 of Colombia Drill Core Assays.
64 67 67 69 69 70 70 73 74 75 77 78 80 80 80 81 82 82 82 83 85 87 90 91 92 97 112
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MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia
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LIST OF TABLES Table 6.1 Table 6.2 Table 12.1 Table 12.1 Table 12.2 Table 13.1 Table 16.1 Table 16.2 Table 16.3 Table 16.4 Table 17.1 Table 17.2 Table 22.1 Table 22.2 Boundary Corners, Guayabales License Payment schedule to Comunidad Minera Guayabales Weighted Average and Maximum Gold Results for CMC Samples Weighted Average and Maximum Gold Results for CMC Samples Sampling By Mine Area CMC Significant Drill Intercepts Original CMC Drill Sample and Independent Duplicate Sample 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 Mineral Resources of the Marmato Gold District 2010 Guayabales Phase I Program 2010-2011 Guayabales Phase II Program LIST OF FIGURES Figure 4.1 Figure 6.1 Figure 6.2 Figure 9.1 Figure 9.2 Figure 10.1 Figure 11.1 Figure 12.1 Figure 12.2 Figure 12.3 Figure 12.4 Figure 12.5 Figure 12.6 Figure 12.7 Figure 13.1 Figure 13.2 Figure 13.3 Figure 13.4 Figure 13.5a Figure 13.5b Figure 15.1 Figure 15.2 Figure 15.3 Figure 15.4 Figure 15.5
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Pg. 8 15 29 29 39 49 66 67 69 69 74 76 86 86
Regional Property Location Map, South America Project Location Map and License Area, Colombia Property Location Map of Guayabales, Showing Known Prospects Marmato District Regional Geology Guayabales Project Geology Intermediate Sulfidation Epithermal Deposit Model Yarumalito Mineralization Paragenetic Sequence Location Map CG Samples with Au Results Location Map CG Samples with 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 Location Map Showing Road Cut and Property Wide Au results Maps of Road Cut Rock Au-Ag-Cu-Pb Results CMC Collar and Drill Hole Trace Map CMC Drill Hole Gold Plan Map CMC Drill Hole Silver Plan Map 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 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
Pg. 6 9 17 23 27 29 31 35 36 38 40 41 44 45 48 50 51 53 54 54 59 60 61 62 63
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Figure 15.6 Figure 16.1 Figure 16.2 Figure 17.1 Figure 17.2
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 LIST OF PLATES
63 66 66 71 72
Plate 7.1 Plate 9.1 Plate 9.2 Plate 9.3 Plate 10.1 Plate 11.1 Plate 11.2 Plate 13.1 Plate 13.2 Plate 13.3 Plate 14.1 Plate 14.2 Plate 16.1 Plate 16.2
Typical view of the countryside in the Marmato region Altered and mineralized Marmato Stock intrusive rocks Deformed and altered sediments of the Amaga Formation Silicified and brecciated Marmato Stock from La Azucena Mine Marmato Stock Frog-eye diorite porphyry 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 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 w/ late carbonate veins and disseminated sulfides (2-phase pyrite) w/in high grade zone. Panning stream sediments from the Guayabales License Panning ore from El Encanto Tunnel MG Core Storage Core Duplicate Sampling
Pg. 19 24 26 28 32 33 37 49 52 52 56 56 65 65
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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 2032. 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, Uranium International Corp., now renamed to Mercer Gold Corporation (MGC), entered into an Option Agreement to acquire the 100% interest of Guayabales subject to the terms of the 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 mineralization at Guayabales, and the Marmato District in general, is related to the emplacement of porphyry stocks of late Miocene age, and is typical of an epithermal, intermediate sulfidation gold-silver deposit. Structure is an important control on the gold-silver mineralization, particularly along northwest trending shear zones. The main mineralized zone on the Guayabales Property, known as the Encanto Zone, ranges from 20 to 40 meters in width, strikes N50o-60oW, and has a sub-vertical to steep southwesterly 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. This work was focused on exploiting the Encanto Zones high grade gold-silver mineralization in relatively narrow underground workings that average 1-2 meters in width, along a strike trend of approximately 250 meters. 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 exploration programs on the property: a) Colombia Gold (CG) from 2005-2006, and b) Colombian Mines
Corporation (CMC) from 2006-2009. CG and CMC principally focused their geologic mapping and geochemical sampling programs on Encanto Zone mines and associated underground workings that are encompassed within a 500 meter by 500 meter 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 northeastsouthwest. The majority of this mineralized structural corridor has not been explored. CMCs Encanto Zone exploration work culminated in a 17 hole diamond drill program 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 successfully 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 goldsilver 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 averaging 2.43 g/t gold and 16.5 g/t silver, including 3.15 meters at 11.0 g/t gold and 43 g/t silver. The CMC core drilling program successfully extended the Encanto Zones strike length to 500 meters, and down dip extent to 200 meters. The zone remains open along strike and to depth, with additional exploration potential within in-parallel mineralized zones in the hanging and footwall rocks. In addition to the Encanto Zone exploration, CMC also collected 163 surface chip channel samples along a new 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 discovered a broad, 600 meter wide zone of fracturing, quartz veining, consistent grades of gold mineralization averaging 0.24 g/t, and anomalous copper-lead geochemistry. Taken together, CMCs underground and road cut sampling define a 1,100 meter wide corridor of significant to anomalous gold mineralization that is on trend with Marmato-Echandia, and has the potential to host a near surface, bulk tonnage, oxide gold resource. Independent data verification of the CMC results included samples taken 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 were representative and reproducible. The assay database verification yielded no errors. Finally, a compilation and review of CMCs QA assay results established that all QC tests were passed for standard, blank, and duplicate samples. The emphasis on establishing the veracity of CMCs results is particularly important as initial results from MGCs Guayabales exploration program remain pending at the time of this report.
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 Marmato complex contains three mining areas termed the Zona Alta, the Zona Baja, and Echandia. In March of 2010, Medoro Resources Ltd. released a NI 43101 compliant Marmato resource estimate reported at a 0.3 g/t gold cutoff of: a) 245 million tonnes of measured and indicated material averaging 0.95 g/t and yielding 7.490 million gold ounces, and b) 75.8 million tonnes of inferred material averaging 0.92 g/t and yielding 2.232 million gold ounces. The resource also includes a significant silver credit. The mineralized trend hosting the Marmato resource projects directly northwest into the gold-silver mineralized zones hosted at Guayabales. 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 (i.e., within 1-2 kilometers) of Guayabales and the Marmato mining complex provides a compelling exploration opportunity for MGC. MGCs priority target is a bulk-tonnage, gold-silver deposit that will be amenable to open pit mining. However, there remains significant exploration potential for higher grade gold-silver 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. As a result, the exploration target at Guayabales not only includes the broad (i.e., in excess of 1 kilometer) 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. Two phases of exploration over a 12 month period are recommended. The first phase is budgeted at US$508,475, and includes data compilation and modeling, further confirmation of CMC drill results, additional geologic mapping and sampling, and an aeromagnetic survey. If the Phase I results return sufficient justification, then a Phase II program budgeted at US$994,450 is recommended, and consists of additional sampling, core drilling, and preliminary metallurgical testing.
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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 28, 2032, 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 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. This current report, with an effective date of June 17, 2010, has been updated to reflect the company name change to Mercer Gold Corporation. In addition, typographic errors or other editorial errata have been corrected. However, there are no changes from the original May 28th report of a significant or material nature in this updated, June 17th version. UIC (now MGC) intended that this report satisfy reporting requirements resulting from its public disclosure dated April 14, 2010 titled Uranium International Corp. Enters Into a Definitive Option Agreement to Acquire the Guayabales Claims From Mercer Gold Corporation. At the Companys request, the scope of the report includes the following: Compile and review all exploration and technical data related to the property. Special emphasis is placed on results provided by Colombian Mines Corporation as a result of their 2006-2009 assessment of the property, which includes compilation of the work from previous operators. 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. 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.
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Update and expand on the NI 43-101 Guayabales technical report written by Richard Thompson on April 5, 2007 in accordance with NI 43-101 and CIM Best Practices reporting guidelines. INFORMATION USED
4.2
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 the 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), 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 exploration database compilation for the Guayabales Property, Public disclosures made by CMC and Medoro Resources Ltd., and A Mercer Gold internal technical summary written by Keith Laskowski in February, 2010.
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 spent in the authors Littleton, Colorado office compiling, reviewing, and interpreting exploration reports and data for the project. 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
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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
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RELIANCE ON OTHER EXPERTS
The opinions expressed in this report have been 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 Colombian Mines Corporation, as well as 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 have been researched and legal opinion provided by ARAL Consultores y Asesores and Alexander Restrepo Quiceno, Esq. (Appendix 1). The author of this report 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: a) the author offers no opinion as to the validity of the mineral title claimed and the description of the property, b) the author offers no opinion on the environmental status of the property, c) the author offers no opinion on whether the necessary permits are in place to carry out exploration and exploitation on the property, and d) the author offers no opinion on the legal status of the option agreements. This reports author hereby acknowledges the original the work of Richard Thompson, the author of the 2007 Guayabales technical report that forms the foundation for this update, Calvin Li for assistance with field and core sampling, James Stonehouse for his review and update on adjacent properties, Keith Laskowski for his review of the CMC exploration results and exploration planning and budgeting, and Michael Sheehan for assistance on report preparation.
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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 main mineralized zone, known as the Encanto Zone, and sixteen known underground workings occur within the Guayabales Property boundaries (Figure 6.2).
Table 6.1. The Guayabales license corners in Latitude & Longitude WGS-84. Corner 1 2 3 4 5 6 7 8 9 10 Latitude N 5 29' 14.3" N 5 29' 39" N 5 29' 39" N 5 29' 55.2" N 5 29' 55.3" N 5 29' 22.9" N 5 28' 40.5" N 5 28' 45.7" N 5 28' 50.3" N 5 28' 50.3" Longitude W 75 36' 31" W 75 36' 30.9" W 75 36' 24.4" W 75 36' 24.4" W 75 36' 35.7" W 75 37' 29.4" W 75 37' 29.5" W 75 37' 19.8" W 75 37' 19.7" W 75 37' 11.6"
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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 28, 2032, 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. No surface agreements are in place, 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 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. The author understands from MGC that due diligence review of Law 1382 is currently in progress.
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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) 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
(b)
(c)
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(d)
the location of fuel and oil storage areas, away from streams and creeks.
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 LAW 1382 An English language translation of Law 1382 was provided to the author May 24, 2010, and can be referenced in Appendix 2. The author has not received expert advice, either positive or negative, on the impact of Law 1382 on the status of the Guayabales Property. 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.
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 June 17, 2010 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 Pending Pending Pending 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
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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. 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. 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. 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. 3. Expenditures for Exploration and Development: MGC is obligated to provide or expend the expenditures within the following schedule: a. Initial $1,500,000 prior to December 31, 2010 b. Additional $5,000,000 prior to December 31, 2011, for a cumulative total expenditure of at least $6,500,000. c. Additional $5,000,000 prior to December 31, 2012, for a cumulative total expenditure of at least $11,500,000. 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
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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.
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. Guayabales Property Mineralized Zones and Mine Workings.
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 has represented and warranted in the Underlying Option Agreement that there were no environmental liabilities at March 4, 2010 and has not reported any subsequent liabilities to date. The author has been informed, but has not confirmed, that all exploration permits for additional work are in place.
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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 property 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 25 kilometers through the mining town of Marmato to 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 second to fifth 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 TSX Venture Tier II issuer Colombian Mines Corporation, conducted geological mapping, geochemical sampling, and limited drilling on the property, starting in 2005. See Section 12 of this report for a detailed review of this work. 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.
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Mercer Gold, a privately-held, Canadian entity registered in British Colombia, entered into an Option Agreement with Comunidad Minerea Guayabales on March 4, 2010 to acquire a 100% interest in the Guayabales Property. Uranium International Corp. (now renamed as Mercer Gold Corporation), 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. 9.0 GEOLOGICAL SETTING
9.1 REGIONAL AND DISTRICT SCALE GEOLOGY (refer to Figure 9.1) 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 terrains (Hall, 1973). Hall suggests that the Cauca Romeral 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 Cauca Romeral 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 porphyry stock is a multi-phase intrusive complex measuring 18 km long by 3 to 6 km wide and is elongated north-south (Calle et al., 1984). Numerous other porphyry stocks are present in the Marmato District. The Marmato porphyries intrude Amag Formation sedimentary rocks in the Cauca Valley and Combia Formation volcanic rocks. The basement is Cretaceous ophiolite complex and Paleozoic metamorphic rocks. 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,
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2003). The latter date is interpreted as the time of maximum ore deposition and may be slightly younger than the age of intrusion. Locally granodiorite and quartz diorite occur with the porphyritic dacites and andesites of the Marmato stock. These rocks are intruded by very fine grained, magnetite-rich dikes that appear to be post-mineral, and have compositions ranging from diabase to rhyolite.
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Figure 9.1. Marmato District Regional Geology.
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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., average of 0.24 g/t Au).
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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 nearly east-west trending structures. 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 Echandia, adjacent to and north of the Zona Alta and Zona Baja, the Echandia trend structures range from N60oW to N80oW in strike. Mineralization on the Guayabales Property occurs approximately on strike to the west-northwest of these productive gold zones. The Marmato trend consists of an extensive set of sub parallel 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. Locally important east west striking structures are important controls for mineralization and form high grade chutes 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.
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9.2 PROPERTY GEOLOGY (refer to Figure 9.2) The geology of the Guayabales Property is dominated by the sheared and mineralized intrusive contact zone between the Tertiary age Marmato Stock and older Paleozoic age marine sediments present in the vicinity of Guayabales (Plate 9.2). The main shear, the Encanto Zone trends roughly N60oW, is sub vertical to steeply southwest 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 east west 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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Figure 9.2. Guayabales Project Geology.
The Marmato Stock is an intermediate composition multiple intrusive complex, which ranges from andesite-diorite to dacite-granodiorite (quartz diorite) in composition. The distribution of the individual intrusive phases has not been mapped in detail. All phases of the stock are weakly to strongly porphyryitic, and all appear to be altered and mineralized. Post-mineral dikes ranging from diabase to rhyolite are relatively minor volumetrically and typically unmineralized, 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).
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The granodiorite porphyry contains phenocrysts of bipyramidal quartz to 5 mm, plagioclase, hornblende and biotite in a fine grained groundmass. The quartz diorite porphyry is darker gray with abundant phenocrysts of coarse white plagioclase to 2 cm, minor fine phenocrysts of quartz, hornblende and biotite, with accessory magnetite (Rosetti and Colombo, 1999). Locally, east west striking structures are important controls for mineralization and form high grade chutes 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.
Plate 9.3. Altered and brecciated Marmato Stock with siliceous matrix, La Azucena Mine, Guayabales Property.
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10.0
DEPOSIT TYPES
The mineralization at Guayabales is typical of an epithermal, intermediate sulfidation type gold-silver-base metal deposit associated with a porphyry system (Figure 10.1, Plate 10.1). This type of mineralization is very 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, or in other words, paragenetically later than the porphyry-style mineralization (Ferdock, 2006; Lewis, 2006). Secondary targets related to earlier precursor porphyry-style mineralization may have the potential to develop significant gold-coppermolybdenum mineralization. These types of deposits often have high exploration potential for surface and underground resources amenable to bulk mining techniques. Figure 10.1. 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.
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). Mineralization occurs in sheared and mineralized intrusive rocks of the Marmato Stock, older Paleozoic sediments, meta-sediments, and the contact zone between the stock and sedimentary rocks. Multiple mineralized shears are exposed in the accessible mine workings and in road cuts on the Guayabales Property. The main productive zone on the property, known as the Encanto Zone, is exposed and developed in the underground workings. The Encanto Zone ranges from 20 to 40 meters in width, striking N50o to N60oW and has a subvertical 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 eastwest to N40oW.
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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 Yarumalito, an exploration property located 10 kilometers north of Guayabales, gold and silver mineralization has similar mineralogy. The sulfosalts tennantite and tetrahedrite were also identified at Yarumalito. At Marmato and Yarumalito, 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, Ferdock, 2006). Limited mineralogic work has been done at Guayabales, but mineralization is expected to be very 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 qualitative review of multi-element geochem results shows that zinc and arsenic are closely associated with gold and silver, and that copper, lead, antimony, cadmium, and bismuth are more loosely affiliated with gold and silver mineralization. Figure 11.1 shows a modified paragenetic sequence for the Yarumalito property, which is located at the north end of the Marmato Stock, and exhibits geology similar to Guayabales. Figure 11.1 Yarumalito mineralization paragenetic sequence (Ferdock 2006).
Stage 1 Alteration
?
Stage 2 Alteration Early Pyrite Chalcopyrite-Sphalerite Late Euhedral Py in exsolution cavities
Early Fracturing Tetrahedrite, acanthite, etc. deposited in early fractures Late Fracturing
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A 3-phase paragenetic sequence 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. 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.
12.0
EXPLORATION
Exploration on the property has primarily been focused on the underground 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 a due diligence program 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. From 2007 to 2008 CMC continued the mapping and sampling programs, with their efforts culminating in the 17 hole drill program discussed in Section 13 of this report. CMC dropped the property in February 2009, and to the authors knowledge, no further exploration has taken place on the property since that time.
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Mercer Gold Corporation commenced initial exploration activities in May 2010, but results were not available at the time of this report. This Section 12 summarizes the results from CGs and CMCs previous work programs. The CG summary is essentially as given in Thompsonss 2007 report. On the other hand, the CMC summary has been updated significantly since the 2007 report (also see Section 13). 12.1 PREVIOUS EXPLORATION ENCANTO MINE AREA - 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 12.1; Figures 12.1 and 12.2). 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. Table 12.1. Weighted Average and Maximum Gold Results for CG Samples. CG Samples Samples Total Avg. Meters Wt. 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). ** This value computed by taking the wt. Au times the meters divided by the total meters for all the locations.
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Figure 12.1.
Location Map Showing CG Sample Au Results.
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Figure 12.2. Location Map Showing CG Sample Ag Results.
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12.2
PREVIOUS EXPLORATION ENCANTO MINE AREA - COLOMBIAN MINES CORPORATION
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 12.3. 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 12.2 and Figures 12.4 and 12.5). 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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12.3 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.
Figure 12.3. 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 12.2. 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 strikelength 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 39.6 6.54 0.43 6.7 1.18 0.04 1.15 0.04 0.14 1.42 0.09 0.41 0.69 0.50 0.47 14.35 50.0 16.2 12.2 18.8 21.4 13.2 0.20 7.36 0.29 4.92 8.77 2.32 13.77
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Figure 12.4.
Location Map Showing Combined CMC and CG Mine Area Au Results.
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Figure 12.5. Location Map Showing Combined CMC and CG Mine Area Ag Results.
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12.4
COLOMBIAN MINES CORPORATION SURFACE EXPLORATION IN RECENTLY DISCOVERED ROAD CUT GOLD ZONES (refer to Figures 12.6 and 12.7)
CMC collected 163 road cut chip channel samples in 2007 along a new access road leading to the Encanto area from the northeast. The road generally trends northeastsouthwest, and perpendicular to the west-northwest structural trend projecting onto the Guayabales Property from Marmato-Echandia to the southeast. The road cuts have exposed saprolitically weathered intrusive rocks, and CMCs sampling identified a broad, 600 meter wide zone of fracturing, quartz veining, gold mineralization, and anomalous geochemistry just to the north of the underground mining area. Taken together, the underground and road cut gold zones define a 1,100 meter wide corridor of significant to anomalous gold mineralization that is on trend with Marmato-Echandia (see Section 17). CMCs road cut samples occur in semi-contiguous groups with accessible exposure of bedrock. CMC defined two new mineralized trends from this sampling, named the Portada and Mill Zones. CMCs work is important in that it identified broad new zones of surface exposed, gold mineralization. However, the sampling to date has poorly constrained the size, orientation, and grade of these zones. The true orientation and distribution of alteration and gold mineralization is not confidently known, and these zones may in fact be continuous with each other. The 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 Au, with a median of 0.16 g/t Au. Silver was low grade (i.e., avg. 4.6 g/t Ag). Anomalous levels of copper and lead are present with gold. The geochemical-geological relationships of gold-copper-lead warrant further characterization and study. Laskowski (2010) summarized CMCs work for the Mill and Portada Zones, as augmented by his personal field observations, as given below: - Portado 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 (phyllitic), with secondary argillic alteration resulting from weathering. Veins cross-cut the altered intrusive and are interpreted to be intermediate to high sulfidation quartz veins with sulfides, and variable amounts of magnetite. As summarized by CMC, the Portado 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, 31.1 meters @ 0.48g/t gold.
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- 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 Portado Zone, including the occurrence of sheeted quartz veins. The principal orientation of the veining is westnorthwest which is different from the orientation noted in the Portado Zone. The outcrops contain strongly brecciated rocks that cross cut the principal northwest structures. As summarized by CMC, the Mill Zone road cut contains the following select mineralized intervals, from north to south: 10.0 meters @ 0.44 g/t gold. 32.8 meters @ 0.37 g/t gold. Clearly, CMCs discovery of the Portado and Mill gold mineralized zones northeast of the high grade Encanto Zone presents a new, and important exploration target type. The spatial distribution and tenor of mineralization, and the depth of oxidation are not yet known. These new zones areas have the potential to host a bulk tonnage, near surface, oxide gold resource, and should be a focus of MGCs early exploration planning and work program.
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Figure 12.6. Location Map Showing Road Cut and Property Wide Au Results.
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Figure 12.7. Maps of Road Cut Rock Au-Ag-Cu-Pb Results.
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13.0
DRILLING
MGC has not conducted drilling on the Guayabales Property. This section describes the 2008 drilling program of previous operator Colombian Mines Corporation. Refer to Appendix 3 for a complete listing of the CMC drill assays. CMC completed a 2079.4 meter, 17 hole drill program to evaluate the extent of goldsilver mineralization hosted in the Encanto Zone, as well in the hanging and footwalls of the zone (Figure 13.1). Small scale mine production from the Guayabales Property has been focused on the Encanto gold zone, which hosts higher-grade, structurally hosted gold-silver mineralization. Encanto related mineralization is controlled by northwest trending shear zones, veins, breccias and faults within the Marmato stock, Paleozoic sedimentary rocks, and at the contact between the stock and sedimentary rocks. From underground and surface mapping and sampling, the Encanto structural corridor ranges from 2040 meters in width, strikes N50-60W, and dips steeply at 7080 degrees SW. The Guayabales diamond drilling campaign was conducted 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 rigs (GDH05,06,09,11,16). The Winkie rigs 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) and 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). Of note, GDH10 and 12 had no assay records in the database for approximately half of the drilled meters; the drill logs should be reviewed to determine the reason for this missing data. Portions of the core
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have been examined by Stonehouse and were observed to be unsplit, so are presumably unsampled over theses intervals (Personal Communication, May 2010).
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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
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 10.40 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 Includes
108.95 110.55 117.95 122.95 110.10 139.45
GDH-15
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 13.2. 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). This shoot returned one of the better Encanto intercepts of 21.85 meters @ 2.43 g/t gold and 16.5 g/t silver, including 3.15 meters @ 11.0 g/t gold and 43 g/t silver. 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. Plate 13.3. GDH07 @ 50.3m Brecciated Plate 13.2. GDH07: 50.25-53.4 3.2 m @ dacite porphyry w/ late carbonate veins 11 g/t Au: Note highly broken rock. and disseminated sulfides (2-phase pyrite) w/in high grade zone.
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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. Further work to understand these drill results in more detail would include: relogging of the core, check assaying of drill sample coarse rejects and pulps, development of a 3-D geologic and alteration model, and the 3-D integration of the underground mine sampling with the drill data. Figure 13.4. Section A-A Looking Northeast, Encanto Zone Grade Shell Interpretation. 1900 Elev
1700 Elev
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Figure 13.5a. Perspective view looking N-NE of Figure 13.5b. Perspective view looking N-NE of Encanto Encanto Zone Au in Drill Holes (10m contours for ref). Zone Grade Shell Model (10m contours for ref).
500m
500m
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14.0
SAMPLING METHOD AND APPROACH
This section, with minor edits and updated comments on drill sampling, is as originally presented in Thompsons 2007 report. MGC sample procedures or results were not available by the effective date of this report. CMC surface and underground sampling at Guayabales has consisted of channel samples and rock chip samples (refer to Table 12.1). 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 12.2). 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). Notes from author of updated June 17, 2010 report: 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 CMC geologists seen here at the Yarumalito property use 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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15.0
SAMPLE PREPARATION, ANALYSIS, AND SECURITY
This section updates and summarizes CMCs sample preparation, analysis, and security protocols. MGC protocols were not available by the effective date of this report. 15.1 COLOMBIAN MINES CORPORATION SAMPLES
This section, with minor edits and updates, 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 June 17, 2010 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 and CMC were working on locating and transferring the Guayabales drill core coarse rejects and pulps from CMCs secure warehouse facility to MGCs secure warehouse. It is expected that this process will be completed sometime in June, 2010.
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15.2
COLOMBIAN MINES CORPORATION 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 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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16.0
DATA VERIFICATION
The authors data verification included independent duplicate and check sampling, as well as an assay database verification, was carried out by the author. 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 CMC 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 secure 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).
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However, the original CMC samples on average assayed higher. The higher gold average is due to three high-grade samples (A008128, A008129, A008308) taken from a broken and rubbly 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 CMC 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 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. Previous CMC sampling 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. There were no sample tags or markings remaining from the CMC sampling program, and due to inaccuracies of the GPS coordinates, taking accurate field duplicates was not feasible. 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 gold, 4.6 g/t silver, and 430 ppm copper from 163 samples. From the limited number of the independent check samples, the average grades are remarkably similar (i.e., 0.30 g/t Au, 8.5 g/t Ag, 477 ppm Cu). These results not only indicate that the CMC samples are reliable and reproducible, but further highlight the consistent nature of the low grade 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
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along the Encanto (Table 16.3). Directly comparing the duplicate samples, the 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.
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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. This 100% fidelity is a strong endorsement of CMCs assay data handling protocols and procedures. 16.3 INDEPENDENT DATA VERIFICATION BY THOMPSON
The 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
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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.
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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 La Colosa deposit, 100% owned by AngloGold Ashanti Limited (Anglogold), and the Marmato Gold District. La Colosa is a new discovery made by AngloGold, and is located at the south end of the Middle Cauca Gold Belt. La Colosa is approximately 200 kilometers south of the Guayabales Property. The gold mineralization is reported to occur in intrusive rocks of similar age and composition to those at Guayabales. AngloGold announced an initial inferred gold resource at La Colosa of 486.8 million metric tonnes with an average grade of 0.86 g/t gold, totaling 12.9 million ounces of gold, using a 0.3 g/t low grade cutoff (News Release, AngloGold Ashanti Limited, May 6, 2008). The gold mineralization at La Colosa is not indicative of gold mineralization on the Guayabales Property, but does provide an analogous deposit-type example with similar host rocks from the same metallogenic belt. 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 1200 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. Section 17.5 is the authors interpretation based upon his work at Guayabales, and from the aforementioned cited sources and personal communications.
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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
GUAYABALES PROJECT MERCER GOLD CORP
Mercer Gold Corporation
Echandia
MARMATO MINES
17.2
MARMATO GOLD DISTRICT - HISTORY
Several versions of the source of the name for the Marmato District exist in the literature. The two most prominent are the based on the similarity of the busy mining district to that of a colony of marmots when viewed from a distance, and the second is ascribed to an old world Spanish word for pyrite, marmat. The district has been exploited since prehistoric 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. At one point during the 1950s, the government of Colombia used the gold resources of Marmato as collateral for its national debt (Tewalt and Carrington, 2006). 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
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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 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. This does not include contraband and illegally mined metal. 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 two kilometers 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
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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 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. A mineral resource estimate for inferred resources was made in 1998 for the Marmato project by MRDI of San Mateo, California and this estimate is contained in a report entitled Marmato Gold/Silver Project Scoping Study which was commissioned by Conquistador (MRDI, 1998). For the Zona Alta and the Zona Baja combined, MRDI estimated an inferred resource of 150 Mt grading 1.07 g/t gold for a total of 5.2 Moz gold. MRDI states that the estimate conforms to the CIM definition of inferred resource required by NI 43-101 (Wilson 2010). The author believes this historical estimate is reliable and relevant. The Zona Baja is operated by Mineros Nacionales (Now 100% owned by Medoro). Mineros Nacionales is currently producing 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 new NI 43-101 compliant resource estimate for the consolidated Marmato District which they now control and continue to consolidate (Wilson, 2010). The update resources are presented in the table below.
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Table 17.2 Mineral Resources of the Marmato Gold District, Colombia (Wilson, 2010).
ZonaAltaMeasuredandIndicatedGoldMineralResources
March05,2010MeasuredResources Cutoff(g/tAu) 0.3 March05,2010IndicatedResources Cutoff(g/tAu) 0.3 March05,2010Measured& IndicatedResources Cutoff(g/tAu) 0.3 March05,2010InferredResource Cutoff(g/tAu) 0.3 March05,2010MeasuredResource Cutoff(g/tAu) 0.3 March05,2010IndicatedResources Cutoff(g/tAu) 0.3 March05,2010Measured& IndicatedResources Cutoff(g/tAu) 0.3 March05,2010InferredResources Cutoff(g/tAu) 0.3 Type Gold Type Gold Tonnes 37,222,000 Tonnes 207,887,000 g/tAu 1.04 g/tAu 0.93 g/tAu 0.95 g/tAu 0.92 g/tAg 7.99 g/tAg 5.75 g/tAg 6.09 g/tAg 5.51 Ounces 1,242,000 Ounces 6,249,000 Ounces 7,490,000 Ounces 2,232,000 Ounces 9,559,000 Ounces 38,398,000 Ounces 47,956,000 Ounces 13,432,000
Type Tonnes Gold 245,109,000 Tonnes 75,810,000
ZonaAltaInferredGoldMineralResources
Type Gold
ZonaAltaMeasuredandIndicatedSilverMineralResources
Tonnes 37,222,000 Type Tonnes Silver 207,887,000 Type Silver Type Tonnes Silver 245,109,000 Tonnes 75,810,000
ZonaAltaInferredSilverMineralResources
Type Silver
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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 the subject of MGCs proposed exploration program at Guayabales, and are 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 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. Veins-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 zones 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. All of the above characteristics of the Marmato District are observed in Zona Alta, Zona Baja, Echandia, and Guayabales. Further exploration at Guayabales has the opportunity to demonstrate 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 volumes of gold-silver mineralized material.
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17.6 HISTORICAL MINING TITLES AND CONSOLIDATION OF THE MARMATO DISTRICT The Marmato District contains three primary areas of mining which are the subject of a NI 43-101 report filed by Medoro Resources Ltd. (Wilson, 2010). Properties of merit adjacent to the Guayabales Property are the Zona Alta and Zona Baja of Marmato, and the adjacent Echandia, both situated east and slightly south of Guayabales (refer to Figure 17.2). Medoro has recently acquired the majority of these three main mining areas of the Marmato District through the purchase of either shares or assets of the various prospects and operating mines in the district. This section on Marmato relies heavily on the data presented in Medoros 2010 report. The Zona Alta, an area of 178.9 hectares was delineated as an aporte (an area which the state would grant permission to mine to advance the national interest) in 1954, to separate it from the lower levels of Marmato (Zona Baja), and various regulations were applied by the various government agencies responsible for regulating mining in this area. The horizontal limits of the aporte were described, and vertical limits were applied to effect the separation from the Zona Baja. The vertical limit is parallel to a road in the district and varies from an elevation of 1207 to 1298 meters. The Zona Alta was further divided in to three additional vertical subdivisions the upper, middle and lower divisions. The mining law of 1994 calls for all the mine concessions or contracts within the Aportes to become legalized. The lower division was consolidated into a single contract with 36 individual owners all operating their own mines. A contract with a 30 year life, renewable for an additional 30 years was granted to the 36 owners in August of 2001. In the two upper levels, contracts are polygonal and have a life of ten years, renewable for ten years. These are dated at the time of their entry into the National register of mines. There are numerous fractions and unclaimed areas within both middle and upper divisions which remained property of the state although some polygons have been granted from time to time by Ecominas in these areas. In January of 2006, Colombian Goldfields Ltd (CGL) bought an equity interest in RNC Colombia which was a Belize corporation that held a 100% interest in Minera de Caldas. Minera de Caldas had acquired certain mineral rights, options to purchase mineral rights, and rights to evaluate certain mineral properties within Zona Alta. After various renegotiations and amendments to the agreement, CGL completed the acquisition of 94.95% of the shares of RNC. The remaining 5.05% are owned by directors of CGL because of the requirement to have at least 5 shareholders of any Colombian company, essentially giving CGL 100% ownership of RNC and hence Minera de Caldas. The entire purchase price in shares and cash was equal to 22 million Canadian dollars. After several unsuccessful attempts to consolidate more of the district by buying-out holders of Echandia and Zona Alta, CGL was acquired by Medoro for 35,120,227 shares
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of Medoro and 1,128,864 warrants to purchase shares during the following 24 month period at a price of C$0.50 per share. CGL stockholders at this point in time controlled approximately 25% of the shares of Medoro. This purchase is pending regulatory approval and the completion of certain conditions placed on CGL by Medoro. Up to this point, CGL had spent a total of C$87,191,000 on the district in acquisition, exploration and administration. Within the Zona Alta there exist 250 individual mines and 95 registered titles in the upper and middle divisions. There 36 registered owners of the lower division of the Zona Alta. Of these 131 registered owners, Minera de Caldas has made agreements with 95 of them. 98 of the remaining mine owners have made applications to register their contracts and the remaining mines are illegal. Of the 98 applications, Minera de Caldas has purchased 35. Of the applications that remain, Medoro estimates that 19-25 of these will be granted and the rest will be denied and become invalid. As of June of 2009, Minera de Caldas had $5.1 million in accounts payable related to these acquisitions due a staged payment scheme. Minera de Caldas has filed applications to cover all gaps in the Zona Alta. (Wilson, 2010) The Zona Baja also began as a 952.6 hectare aporte created in 1954 separated from the Zona Alta and was managed by various state entities and leased to different operators. The contract for the Zona Baja was awarded to Mineros Nacionales S.A. in April of 1989 Ecominas. Previously, it had been explored and operated by various operators including Phelps Dodge. Mineros de Antioquia, which changed its name to Mineros S.A in 1997, began acquisition of shares of Mineros Nacionales in 1993. It gained full control of Mineros Nacionales in 2001. Mineros Nacionales negotiated its own sale to CGL and received over $9 million dollars in advance, non-refundable payments from CGL. In October of 2007, CGL failed to complete the deal and forfeited the advance payments. In February of 2010, Medoro announced that they had acquired all of the outstanding shares of Mineros Nacionales from Mineros S.A for $35 million. The Echandia License lies northeast of the Zona Alta and is not constrained by elevation like Zona Alta and Zona Baja. The concession was original applied for in 1956 By George Geale on three adjoining mining tracts, and in 1972, the subsequent owner, Sociedad Minera Echandia submitted documents to prove the ground was under exploitation and the license was granted in February of 1985. In February of 1990, a new license was issued consolidating the tract under a new mining code. The property passed through several hands for the next several years including Grand Colombia Resources, Mistral, and Croesus. The property was acquired by Medoro in July of 2009 from Colombia Gold for 33,333,333 shares of Medoro and the payment of C$2.6 million in debt.
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17.7
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 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. At least 10 diamond drills and possibly more are operating in the Marmato area for Medoro. Drilling can be observed to continue in Zona Alta and Echandia, and is presumed to continue in Zona Baja as contractors vehicles are 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. Some aspect of this reluctant attitude is also due to closure of mines and mills once they have been purchased.
18.0 18.1
MINERAL PROCESSING AND METALLURGICAL TESTING COMMENTS ON GUAYABALES SMALL SCALE MINE PRODUCTION AND PROCESSING
At present MGC and MGC do 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 ores (Ferdock, 2006).
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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 the firm of 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, based on the MRDI (1998) resource estimate, 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 9095% 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 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.
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18.3
COMMENTS ON THE RELEVANCE OF MARMATO PROPERTIES METALLURGICAL STUDIES TO GUAYABALES
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 ore 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 underestimation 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
Mercer Gold Corporation (MGC) has completed a definitive option agreement to acquire the exploration and mining rights for the Guayabales Property, and has initiated field based exploration assessment of the property. In addition, the Company recently (May 2010) purchased a property-wide digital exploration database that includes results from work programs conducted by Colombia Gold and Colombian Mines Corporation. From initial field reviews, and evaluation of the exploration data compilation, MGC has identified a number of priority exploration targets at Guayabales. These targets are similar in character to the mineralization found at the adjacent properties of Marmato and Echandia. 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. The Marmato mining complex is located two kilometers southeast of Guayabales, and lies within a major northwest trending fracture/shear zone within the Middle Cauca Gold Belt. This trend is credited with more than 16 million gold ounces of resources/reserves and historic production (Sillitoe, 2008). The host rocks, alteration, geochemistry and mineralization in the Marmato District are characteristic of a bulk tonnage, porphyryrelated 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 mineralization of the Mill and Portado 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 100200 meters of the mineralized system. MGCs principal exploration target is a bulk-tonnage, gold-silver deposit that will be potentially amenable to open-pit mining. Metallurgical test work has not yet been performed for Guayabales mineralized material, but based upon metallurgical work at the adjacent Marmato complex it is reasonable to conclude that processing will be either by milling and cyanide leaching, or by heap-leaching. Potentially economic grades of a bulk-tonnage target are dependent on defining areas with a sufficiently high density of gold-silver bearing veins and veinlets to make cutoff grade. A second target type with upside exploration potential are the well recognized, higher-grade, 1-3 meter wide vein zones amenable to selective, underground mining exploitation. The potential for defining economic gold-silver mineralization is clearly manifested by the presence of a number of small scale mining operations on the property. Finally, porphyry-style alteration has been identified in the Marmato District, and the geologic relationships of intermediate sulfidation deposits to porphyry systems provides metallogenic context for the mineralization at Guayabales, as well as representing an additional potential target type.
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MGC has concluded that the 2006-2009 exploration program conducted by CMC, as augmented with earlier data from Colombia Golds work, was successful in confirming that the mineralization at Guayabales is analogous to that found at the adjacent Marmato and Echandia properties. Furthermore, CMCs 2,079 meter drilling program on the Encanto gold zone, delineated 500 meters (northwest-southeast) of strike length and 200 meters of down dip extent. 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. Finally, road cut sampling north of the underground mining area exposed altered and mineralized intrusive rocks and broad zones of low grade gold mineralization on trend with the mineralized structural corridor projecting from Marmato and Echandia. Additional work will be needed to delineate these zones and to determine the distribution and grade of the mineralization.
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22.0
RECOMMENDATIONS
Guayabales is a property of merit, with multiple upside exploration target types. Two phases of exploration over a 12 month period are recommended. General recommendations for additional work are listed below: 1) A thorough review of the Guayabales exploration database compilation, including a comprehensive integration, interpretation, and target selection study. This includes 3-D modeling of the underground workings, sampling, and drill hole data. Confirmation of the CMC drill hole collar coordinates in the field, wherever possible. Check assays on 10% of the CMC drill pulps, if they are available. Also, screen fire assays on select high grade samples. Additional underground channel sampling, particularly for tunnels with limited CMC or CG data. Soil (MMI) and stream sediment geochemistry programs. The soil sampling will focus on the recently recognized (road cut) gold zones north of the underground mine area. Additional trench sampling on priority targets. Trenches should be mapped for geology and alteration as a component of the program. Preliminary metallurgical testing on representative high grade and lower grade bulk tonnage samples. Conclude legal review and impact of Law 1382. Complete all aspects of legal and environmental due diligence review and vetting. Surface and/or underground drilling on priority targets. Ground magnetics orientation survey and regional aeromagnetic survey, to encompass the Guayabales and Marmato mineralized systems.
2) 3) 4) 5)
6) 7) 8) 9) 10)
The first phase of 2010 exploration is budgeted at US$508,475, including land payments until the end of 2010 (Table 22.1). Phase I will consist of surface and underground mapping and sampling programs to follow-up on CMCs work. This new work should be conducted simultaneously with a regional aeromagnetic survey of the Guayabales and surrounding areas. A systematic soil sampling program to evaluate the recently recognized road cut gold zones north of the Encanto mine area is a priority. Encouraging results from the soil survey should be followed by trenching and bedrock channel sampling, and with further encouragement, drilling. As the program progresses, additional mineralized zones might be tested with trenching and sampling to produce the next generation of targets. Other recommended work includes check sampling of previous CMC drill pulp assays, including screen fire assays of high grade samples, as well as confirmation of drill hole collar locations.
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Table 22.1. 2010 Guayabales Phase I Program.

Item Data purchase and compilation Camp costs Local labor Trenching for assays and geology Drill Core Check Analysis Rock Sampling Other Sampling Mapping Drafting and Modeling Ground Magnetics Airborne Magnetics Travel Property Payments Legal Labor Contingency 7.5% Total Description Acquisition of CMC & other digital data Housing technical crew and vehicle 2-4 people for 80 days Map, sample, assay @ $10/m 200 samples @ $50/each Outcrop samples Soil and stream sediments Map surface & underground exposures In Colombia and North American offices Orientation Survey Regional airmag survey 375 line km In Colombia; limited travel from the US Next 2 payments In Colombia and Canada Geologist and assistants Cost (US$) 30,000 8,000 5,000 5,000 10,000 5,000 75,000 15,000 25,000 20,000 80,000 25,000 110,000 10,000 50,000 35,475 $508,475
If Phase I is successful in developing drill targets, then a Phase II program budget of US$994,450 is recommended for later in 2010 and early 2011 (Table 22.2). This next phase of exploration work will be focused on drilling, but also includes increased district and property-wide exploration, metallurgical testing, and follow-up mapping and sampling work.
Table 22.2. 2010-2011 Guayabales Phase II Program.
Item Core Drilling (surface/underground) Rig Mobilization & Survey Pad and Road Building Drill Core Analysis Camp costs Local labor Metallurgical studies Drafting, GIS and Modeling Travel Property Payments CMG Property Payment Government Legal Other sampling Labor Contingency 5% Total June 17, 2010 Description 2500 meters @ $135/m (potentially less with MGC equipment) 1 road plus culverts 2000 samples @ $50/each Housing technical crew and vehicle Up to 20 people, but 8 person average for 8 months Prelim met testing In Colombia and North American offices Colombia; limited travel from the US Through May of 2011 Estimated 247.85 @ $9/ha In Colombia and Canada 200 samples @$50 Geologist and assistants Cost (US$) 337,500 10,000 15,000 100,000 30,000 20,000 55,000 25,000 25,000 140,000 2,250 25,000 10,000 130,000 69,700 $994,450
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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. Ferdock, Greg, 2006, CGS Consultants, Summary and Observations, Yarumalito Property, Thin and Polished Sections, 6 pp. 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.
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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. 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. 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 Rossetti, P. and Colombo, F., 1999, Adularia-sericite gold deposits of Marmato, Caldas, 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.
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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, techtonomagmatic 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. Tewalt, N.A. and Carrington, R.G., 2006 personal correspondence on the results of surface sampling, and unpublished internal reports and presentation material. 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. 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 http://www.lablaa.org/blaavirtual/historia/minas/indice.htm.
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Certificate of Author
Dean D. Turner
10607 Brown Fox Trail Littleton, Colorado USA 80125 I, Dean D. Turner, of Littleton, Colorado, United States of America, 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. 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 of the titled Guayabales Project Technical Report, Department of Caldas, Republic of Colombia dated 17th June 2010 (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. I am not aware of any material fact or change with respect to the subject matter of this technical report that is not reflected in the report, the omission to disclose which makes this report misleading. I am independent of Mercer Gold Corporation as set out in section 1.5 of NI 43-101. Dated this July 6, 2010 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 June 17, 2010.
Dated this July 6th, 2010
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: Legal Opinion on Guayabales Property 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: 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 3. 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
June 17, 2010
113
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
June 17, 2010
114
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
June 17, 2010
115
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
June 17, 2010
116
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
June 17, 2010
117
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
June 17, 2010
118
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
June 17, 2010
119
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
June 17, 2010
120
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
June 17, 2010
121
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 1.10 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
June 17, 2010
122
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
June 17, 2010
123
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
June 17, 2010
124
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
June 17, 2010
125
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
June 17, 2010
126
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
June 17, 2010
127
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
June 17, 2010
128
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
June 17, 2010
129
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
June 17, 2010
130
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
June 17, 2010
131
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
June 17, 2010
132
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
June 17, 2010
133
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
June 17, 2010
134
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
June 17, 2010
135
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
June 17, 2010
136
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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137
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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138
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
June 17, 2010
139

Guayabales NI 43-101 Technical Report Dated June 17, 2010

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Guayabales NI 43-101 Technical Report Dated June 17, 2010

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Guayabales Project Technical Report

Effective Date: June 17, 2010

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

June 17, 2010

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

June 17, 2010

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

June 17, 2010

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

INTRODUCTION TERMS OF REFERENCE

June 17, 2010

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

June 17, 2010

Figure 4.1. Regional Location Map, Colombia, South America.

MERCER GOLD CORPORATION

June 17, 2010

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

RELIANCE ON OTHER EXPERTS

June 17, 2010

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

PROPERTY LOCATION AND DESCRIPTION PROPERTY LOCATION

June 17, 2010

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

Figure 6.1 Project Location Map and License Area, Colombia.

MERCER GOLD CORPORATION

June 17, 2010

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

June 17, 2010

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

June 17, 2010

June 17, 2010

June 17, 2010

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

MERCER GOLD CORPORATION

ACCESSIBILITY, CLIMATE, LOCAL INFRASTRUCTURE, AND PHYSIOGRAPHY

June 17, 2010

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

June 17, 2010

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

PROPERTY HISTORY HISTORICAL COLOMBIAN GOLD PRODUCTION

June 17, 2010

June 17, 2010

June 17, 2010

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

Figure 9.1. Marmato District Regional Geology.

MERCER GOLD CORPORATION

June 17, 2010

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

June 17, 2010

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

June 17, 2010

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

Figure 9.2. Guayabales Project Geology.

MERCER GOLD CORPORATION

June 17, 2010

June 17, 2010

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

June 17, 2010

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia

Stage 2 Alteration Early Pyrite Chalcopyrite-Sphalerite Late Euhedral Py in exsolution cavities

June 17, 2010

MERCER GOLD CORPORATION Technical Report Guayabales Project, Colombia