TECHNICAL REPORT ON THE LA LAJITA PROPERTY, DURANGO

Transcription

TECHNICAL REPORT ON THE
LA LAJITA PROPERTY,
DURANGO, MEXICO
For
OCEANUS RESOURCES CORPORATION
Centred at
468,000 E; 2,561,000 N
WGS 84 Zone 13 N
Prepared By
Peter Webster, P.Geo.
Mercator Geological Services Limited
Effective Date: October 26, 2012
ii
La Lajita Property Technical Report October 2012 Table of Contents
1.0 Introduction and Terms of Reference ........................................................................ 1 2.0 Reliance on Other Experts ......................................................................................... 2 2.1 General ......................................................................................................................... 2 3.0 Property Description and Location ............................................................................ 3 3.1 General......................................................................................................................... 3 3.2 Summary of Exploration Title Information .................................................................. 3 3.3 Terms of the Agreement ............................................................................................... 4 4.0 Accessibility, Climate and Physiography .................................................................. 7 5.0 History ...................................................................................................................... 10 5.1 General ....................................................................................................................... 10 5.1 Minera Fuerte Mayo ................................................................................................. 10 5.2 International Northair Mines Ltd............................................................................. 11 6.0 Geological Setting and Mineralization .................................................................... 15 6.1 Regional Geology ..................................................................................................... 15 6.2 Property Geology ...................................................................................................... 18 6.3 Structural Geology...................................................................................................... 20 6.4 Mineralization............................................................................................................. 20 7.0 Deposit Type............................................................................................................. 24 8.0 Exploration ............................................................................................................... 28 9.0 Drilling ..................................................................................................................... 32 9.1 Minera Fuerte Mayo ................................................................................................. 32 9.2 International Northair Mines Ltd............................................................................. 32 10.0 Sample Preparation, Analyses and Security .......................................................... 36 10.1 Sample Preparation ................................................................................................... 36 10.2 Analysis .................................................................................................................... 36 10.3 Quality Assurance and Control (QAQC) ................................................................. 36 10.4 Security ..................................................................................................................... 36 11.0 Data Verification .................................................................................................... 38 11.1 Site Visit ................................................................................................................... 38 11.2 Independent Sampling .............................................................................................. 38 12.0 Adjacent Properties ................................................................................................ 42 12.1 GoGold Resources Inc. - San Diego Project ............................................................ 42 13.0 Mineral Processing and Metallurgical Testing ...................................................... 45 14.0 Mineral Resources and Mineral Reserve Estimates .............................................. 47 15.0 Other Relevant Data and Information .................................................................... 48 16.0 Interpretation and Conclusions .............................................................................. 49 17.0 Recommendations .................................................................................................. 51 17.1 Phase 1 Recommendations ....................................................................................... 51 17.2 Phase 2 Recommendations ....................................................................................... 51 18.0 Date and Signatures................................................................................................ 53 19.0 References Cited and Selected References ............................................................ 54 Appendix I ...................................................................................................................... 56 Statements of Qualifications .......................................................................................... 56 Appendix II..................................................................................................................... 59 65 Queen St. • Dartmouth, NS B2Y 1G4 • Ph.: (902) 463‐1440 • Fax: (902) 463‐1419 E‐mail: [email protected] • Web: www.mercatorgeo.com iii
La Lajita Property Technical Report October 2012 Author Sample Data ....................................................................................................... 59 List of Figures
Figure 1: Property Location.................................................................................................... 5 Figure 2: Claim Title .............................................................................................................. 6 Figure 3: Claims Location and Property Access .................................................................... 8 Figure 4: Historic Exploration Programs .......................................................................... 13 Figure 5: Regional Geology ................................................................................................. 16 Figure 6: Property Geology and Mineralized Zones ............................................................ 19 Figure 7: Structural Geology ................................................................................................ 21 Figure 8: A Zone Workings and Sample Location ............................................................... 22 Figure 9: B Zone Workings and Sample Location ............................................................... 23 Figure 10: Genesis of Epithermal Mineral Deposits (White, 1994) ..................................... 25 Figure 11: Location of Major Open Pit and Underground Epithermal Au-Ag Deposits ..... 27 Figure 12: Preliminary Geological Interpretation............................................................. 29 Figure 13: Cross Section RC Hole TRC-04-013 .............................................................. 31 Figure 14: Historical Drill Hole Locations ........................................................................... 33 Figure 15: Mercator Check Sample Locations ..................................................................... 40 Figure 16: A Zone - Maroon Hematitic Breccia Sample Site .............................................. 41 Figure 17: B Zone - Production Pile Sample Site ................................................................ 41 Figure 18: Adjacent property locations ................................................................................ 43 List of Tables
Table 1: Summary of Concessions ......................................................................................... 3 Table 2: Historical mineralized Zone Names ....................................................................... 10 Table 3: Continuous Sample Line Summary (International Northair 2004) ........................ 11 Table 4a: Select Open Pit gold and silver mines within the SMO ....................................... 25 Table 4b: Select Underground gold and silver mines within the SMO ................................ 26 Table 5: *Significant RC Drilling Results Recalculated from Northair (2004) ................... 30 Table 6: *Significant Drilling Intercepts From Minera Fuerte Mayo - 1999 ....................... 32 Table 7: RC Drill Hole Data for Northair Program - 2004 .................................................. 34 Table 8: *Significant RC Drilling Results A Zone (Northair 2004) .................................... 34 Table 9: *Significant RC Drilling Results E Zone (Northair 2004) ..................................... 35 Table 10: *Significant RC Drilling Results B Zone (Northair 2004) .................................. 35 Table 11: *Significant RC Drilling Results D Zone (Northair 2004) .................................. 35 Table 12: Mercator Check Sample Results - La Lajita ........................................................ 39 Table 12: *Significant Drill Hole Results From Chispa South Prospect ............................. 42 Table 13: *Lluvia De Oro Historic Reserves ....................................................................... 44 Table 14: *Summary of Cyanide Leach Tests (Northair 2004) ........................................... 45 Table 15: *Summary of Metallic Screen Analysis ALS Chemex (Northair 2004) .............. 46 Table 16: Phase 1 Estimated Budget .................................................................................... 51 Table 17: Phase 2 Estimated Budget .................................................................................... 52 65 Queen St. • Dartmouth, NS B2Y 1G4 • Ph.: (902) 463‐1440 • Fax: (902) 463‐1419 E‐mail: [email protected] • Web: www.mercatorgeo.com iv
La Lajita Property Technical Report October 2012 Summary
This Technical Report on the geology and mineralization of the La Lajita property was
prepared by Mercator Geological Services Limited ("Mercator") on behalf of Oceanus
Resources Corporation ("Oceanus") to comply with technical reporting and disclosure
requirements set out under National Instrument 43-101. The property consists of 12
Mexican mining concession titles covering approximately 3,218 hectares in Durango State,
Mexico. The property is located in the south-western corner of the state near the borders
with Sinaloa and Nayarit states. The property is centred about UTM coordinates
2,561,000N and 468,000E WGS 84, Zone 13N.
On October 24, 2012 Oceanus announced the Company signed a binding letter of intent
(“LOI”) to acquire all of the issued and outstanding securities of Lunar Gold Holdings
Incorporated (“LGH”), a Canadian company, by way of security exchange. LGH and
LGH’s wholly owned Canadian subsidiary, LGHI Holdings Incorporated (“LGHI”),
together own 100% of Minera Pueblo de ORO SA DE CV, a Mexican company, (“MPO”).
MPO has the option to earn a 100-per-cent interest in twelve (12) Mexican mining
concession titles, collectively known as the La Lajita property (the “Claims”) covering
approximately 3,218 hectares in Durango, Mexico (the “MPO Agreements”).
The La Lajita property is located in the Pueblo Nuevo mining district, and some
mineralized zones have been hand mined by small scale mining interests (Gambusinos).
The property is accessible by paved and local gravel roads from either of the main centres
of Durango or Mazatlan, where commercial international flights land from the United
States and from Mexico City. A 4 wheel drive vehicle may be required along some dirt
roads in the immediate property area. Many of the historic mining areas are accessible by
narrow switch back hiking trails and locals use donkeys to carry supplies to these sites.
The author accessed the property by helicopter from the town of Pueblo Nuevo and landed
at the A Zone showing.
The claims are host to an epithermal gold/silver system that extends for a distance of more
than 1.5 km. Widespread quartz veins, breccias and stockworks occur over the length of the
system and host gold and silver mineralization. The district has been mined by small scale
historical operations and no recorded mining history by the Spanish occurred on the La
Lajita property. However, mining by local miners known as Gambusinos has occurred on
the property. This mining is by pick and shovel and gold is hand panned after pulverization
of the mined material. This limited historical work on the property is the oldest known
work and dates back approximately 50 years.
The La Lajita property is located in the central portion of the Sierra Madre Occidental
(SMO) province. The Sierra Madre is one of the largest volcanic belts in the world, and
extends for over 2,000 km from the U.S. – Mexico border to southern Nayarit State where
it is overlain by the Trans-Mexican Volcanic Belt. The SMO is recognized as an
extremely prospective mineral belt for gold, silver and poly metallic mineral deposits.
The volcanic-related epithermal precious metal deposits of middle Tertiary age occur
throughout the north of the SMO and include low-sulfidation Ag-Au (±Pb-Zn-Cu)
65 Queen St. • Dartmouth, NS B2Y 1G4 • Ph.: (902) 463‐1440 • Fax: (902) 463‐1419 E‐mail: [email protected] • Web: www.mercatorgeo.com v
La Lajita Property Technical Report October 2012 veins, and high-sulfidation Au-(Cu) deposits. La Lajita is a low-sulfidation epithermal
type deposit and known gold and silver mineralization at the La Lajita property occurs
within seven distinct alteration zones. Mineralization generally occurs in veins,
stockwork and breccia zones along and adjacent to fault zones. Minor sulphide minerals are
associated with hematite and local specularite and the presence of these minerals suggest a
low-sulfidation type system.
The most significant historical exploration work completed on the property included
geological mapping, soil and stream sediment sampling, rock sampling, underground
sampling trenching and reverse circulation drilling by International Northair Mines Ltd.
(Northair) between January and June 2004. Known gold and silver mineralization at the
La Lajita property occurs within seven distinct alteration zones which are identified as
the A to G Zones. Mineralization generally occurs as veins, stockwork and breccia zones
along and adjacent to fault zones. Presence of relatively minor amounts of sulphide
minerals along with hematite (locally as specularite) within these alteration zones indicates
association with a low-sulfidation type epithermal system. Visible gold mineralization
within siliceous quartz and hematite breccia hosted by maroon colored andesitic pyroclastic
host rocks at both the A and C zones. Significant underground samples reported by
Northair at the A and B Zones included 4.5m grading 19.35g/t Au and 100g/t Ag, 5.49m
grading 7.22g/t Au and 31g/t Ag, and 3m grading 10.55g/t Au and 36.6g/t Ag. Significant
intercepts from continuous surface trench sampling include 10m grading 9.0g/t Au and
67.9g/t Ag, 20m grading 2.8g/t Au and 23.1g/t Ag and 12m grading 18.86g/t Au and
13.2g/t Ag. Drilling by Northair indicates that gold and silver mineralized zones can exceed
100 meters in strike length and have true widths ranging from 1.5m to greater than 15m.
Wider zones of high grade gold and silver mineralization may also occur in areas
influenced by structural intersections. Significant drill results include A Zone hole TRC-0406 that returned 8.19g/t Au and 46.2g/t Ag over 10.7m and B Zone hole TRC-04-13 that
returned 3.16g/t Au and 16.5g/t Ag over 10.7m. Similar dimensions were confirmed by the
author in field observations at the A and B Zones during the 2012 site visit.
A Zone mineralization appears to be associated with a northwest striking fault zone and
visible gold mineralization was observed in a brecciated, maroon, andesitic pyroclastic rock
showing hematitic and silicic alteration. The A Zone is locally 15-20m thick as measured in
drilling, surface exposures and grab sampling of mineralization within this zone. B and C
Zone mineralization is also associated with a hematitic, silicified breccia developed in
maroon andesite. Visible gold mineralization was also observed and results of historic
mapping and drilling indicate that this alteration zone is thicker than the A Zone. The D
Zone is describe as having amethystine and chalcedonic quartz vein associated
mineralization, occurring along a regional west northwest striking fault drilling. Sampling
by Northair indicates that gold mineralization in this area occurs in scattered patches or
pockets within the broader zone of altered host rock. Gold and silver mineralization at the
E Zone is associated with a 20m wide hematitic, silicic breccia that occurs along a west
dipping fault. The E Zone is interpreted to be a continuation of the A Zone and is located
350m to the south, but this has not been fully assessed to date. F Zone gold mineralization
occurs within a hematitic, silicified breccia that is associated with maroon volcanics. The G
Zone is located approximately 600m to the northeast of the E Zone and there is limited
65 Queen St. • Dartmouth, NS B2Y 1G4 • Ph.: (902) 463‐1440 • Fax: (902) 463‐1419 E‐mail: [email protected] • Web: www.mercatorgeo.com vi
La Lajita Property Technical Report October 2012 documentation about the gold mineralization in this area. The occurrence is based on
historical information plus the mapped presence of old mine workings and trenches
Limited exploration work has been completed by Oceanus on the La Lajita property and to
date most of this work has focused on the compilation of past exploration results. Limited
interpretation work by Oceanus of results of past exploration suggests that correlation of
individual mineralized zones and associated alteration trends is possible, based on sampling
and drilling results from 1999 and 2004. Two main trends have been identified, but more
exploration is needed to fully test these trends and associated potential ideas.
The author of this report completed a site visit to the La Lajita property on August 21st and
22nd, 2012 in the company of David Duncan, P. Geo., Director of Oceanus Resources
Corporation. A total of 9 samples were collected by the author for independent check
sample purposes from two mineralized zones on the property. These included chip samples
across altered and mineralized zones, outcrop samples of brecciated or mineralized rock
and grab samples from production pile ore from the small scale mining operations. These
check samples were analyzed at ALS laboratory in Zacatecas, Mexico, an independent,
accredited and ISO certified laboratory, and returned gold values ranging between 6.89g/t
and 75.83g/t and silver values between 64.5g/t and 485.09g/t. The author is satisfied that
these samples are representative of the mineralization found on the property and similar to
that addressed in historical exploration reporting.
Based on the findings of this report, a two phase exploration program is proposed to
further assess property potential. Phase 1 recommended exploration includes detailed
mapping and sampling of the 7 known mineralized zones, reconnaissance mapping and
sampling of newly identified gossan zones, satellite image analysis and associated
ground truthing for the entire property area. The Phase 1 estimated budget is $500,000.
Recommended Phase 2 exploration is contingent on success of Phase 1 exploration and
primarily consists of diamond drilling of known mineralized zones in order to better test
their down dip and strike extensions and to establish a basis for future resource estimation
work. Diamond drilling of newly discovered mineralized zones or trends is also
recommended, after careful priority ranking. The estimated Phase 2 budget is $1,000,000.
65 Queen St. • Dartmouth, NS B2Y 1G4 • Ph.: (902) 463‐1440 • Fax: (902) 463‐1419 E‐mail: [email protected] • Web: www.mercatorgeo.com 1
Las Lajitas Property Technical Report October 2012 1.0 Introduction and Terms of Reference This Technical Report on the geology and mineralization of the La Lajita property was
prepared by Mercator Geological Services Limited ("Mercator") on behalf of Oceanus
Resources Corporation ("Oceanus") to comply with technical reporting and disclosure
requirements set out under National Instrument 43-101. The property consists of 12
Mexican mining concession titles covering approximately 3,218 hectares in Durango State,
Mexico, and is located in the south-western corner of the state, near the borders with the
states of Sinaloa and Nayarit. It lies in the Pueblo Nuevo mining district and is centred
about UTM coordinates 2,561,000N and 468,000E WGS 84, Zone 13N.
This report documents the exploration and mining history of the La Lajita property where
limited hand-based mining by artisanal miners, called Gambusinos, has taken place over the
last 50 years. There are no verifiable reports of grade and tonnage for the gold extracted by
these operations. The most significant documented historical exploration on the property
was completed by International Northair Mines Ltd. (Northair) and included mapping
bedrock sampling, geochemical sampling and reverse circulation drilling during the period
January to June 2004.
The information and data used in the preparation of this report was sourced from Oceanus
and included reports of past work by Northair and others in 1999 and 2004, publicly
accessible academic papers and publicly disclosed technical information from company
websites. The author has provided citations throughout the report where this information
has been referenced.
The author of this report is a professional geologist (P.Geo.) and prepared this report after
review of past exploration on the property and mineralization viewed during the property
visit. Peter Webster P.Geo is an independent Qualified Person (QP) as defined by NI43101 and visited the property in August 2012. The author and the company worked strictly
on a fee for service basis.
As stated above the author of this report visited the La Lajita Property at which time
mineralization was observed in outcrop and the locations of old workings and active
Gambusino base hand mining operations were observed. Based on the site visit
observations with respect to historic mine workings, drill collar locations, mineralization
and the results of independent sampling the QP is certain that the work detailed in this
technical report has actually been completed.
Las Lajitas Property Technical Report October 2012 2.0 Reliance on Other Experts 2.1General
No other experts were consulted in the preparation of this report.
This report was prepared by Mercator for Oceanus and the information, conclusions and
recommendations contained herein are based upon information available to Mercator at the
time of report preparation. This includes data made available by Oceanus and from
government and public record sources. Information contained in this report is believed
reliable but in part the report is based upon information not within the authors’ control. The
author has no reason, however, to question the quality or validity of data used in this report.
Comments and conclusions presented herein reflect best judgment at the time of report
preparation and are based upon information available at that time.
The author is not a Qualified Person with respect to comment on validity of mineral titles,
surface rights titles, access agreement terms, land ownership issues and environmental
liabilities assessments in the state of Durango, Mexico. Mercator has relied upon the
opinion of Mr. Richard Gordon, President and CEO of Oceanus with respect to these
issues, who confirmed the content and validity of associated report text on October 24,
2012. 65 Queen St. • Dartmouth, NS B2Y 1G4 • Ph.: (902) 463‐1440 • Fax: (902) 463‐1419 E‐mail: [email protected] • Web: www.mercatorgeo.com 3
Las Lajitas Property Technical Report October 2012 3.0 Property Description and Location 3.1General
The La Lajita property is located in Durango State, Mexico and is located approximately
110 km southwest of the capital city Durango and is centred at 2,561,000N and 468,000E
WGS 84, Zone 13N (Figure 1).
3.2SummaryofExplorationTitleInformation
The La Lajita property is located in the Pueblo Nuevo mining district, and some
mineralized zones have been hand mined to a limited degree by artisanal miners
(Gambusinos). The property consists of 12 Mexican mining concession titles covering a
total of 3,218 hectares in Durango State, Mexico that are permitted by the Mexican
government. Table 1 summarizes the land ownership concession titles that comprise the
Oceanus property (Figure 2). Property boundaries are established by survey measurements
taken relative to a concrete monument erected near the center of the title property.
Table 1: Summary of Concessions
Concession #
Concession Name
Owner
Hectares
Expiry Date
229020
La Fourtuna
Adrian Betancourt
186533
Guadalupe
219837
Tesoro 1
Groupo Northair
Groupo Northair
Tesoro 2
Groupo Northair
Tesero1 Fraccion 1
Groupo Northair
Tesero 2 Fraccion 1
Groupo Northair
Tesero 2 Fraccion 2
Groupo Northair
219857
Tesero 2 Fraccion 3
Groupo Northair
222421
Tesoro 3
Groupo Northair
La Lajita
Groupo Northair
204.2018
January 16, 2053
220311
Dos Hermanos
Groupo Northair
75.282
July 10, 2053
194007
Santo Ninos
Noriega Family
10.3354
December 18, 2041
219854
219838
219855
219856
218784
197.5266
Feb 27, 2057
20
April 2, 2015
471.3
April 21, 2053
2.33
April 23, 2053
5.158
April 21, 2053
12.545
April 23, 2053
4.9498
April 23, 2053
0.0018
April 23, 2053
2215.9864
July 7, 2054
Las Lajitas Property Technical Report October 2012 3.3TermsoftheAgreement
Under the terms of the LOI, Oceanus will issue 11,000,000 shares of the Company to the
shareholders of LGH. The LOI is subject to TSX Venture Exchange (the “Exchange”) and
other regulatory approvals. As well, closing is subject to satisfactory due diligence by the
Company, a geological report compliant with National Instrument 43-101 being completed
by Oceanus and approved by the Exchange, execution of a definitive share exchange
agreement and other customary approvals for transactions of this type.
The terms of the MPO Agreements provide MPO with an option to acquire a 100%
interest in 10 Mexican mining concession titles from Groupo Northair in exchange for
payments commencing October 4, 2012 and proceeding as follows:
-
rental payment of US$1,200 per month
on the 6th month anniversary payments of US $94,000;
on the 60th month anniversary payments of US $500,000; and
on the 72nd month anniversary payments of US $500,000.
In addition, if these claims are put into production the claims will be subject to a 2% NSR
if gold is valued at less than $1,000 per ounce or 2.5% if gold is valued at greater than
$1,000 per ounce at the time of production. Oceanus can purchase 50% of this NSR for
$1,500,000 US.
Licence 229020 has a required annual payment of $50,000 starting on October 4, 2012 and
if these claims are put into production the claims will be subject to a 2% NSR if gold is
valued at less than $1,000 per ounce or 2.5% if gold is valued at greater than $1,000 per
ounce at the time of production. Oceanus can acquire 50% of this NSR for $200,000 US.
Licence 194007 has an annual rental charge of $6,000 US commencing October 15, 2012,
which can be purchased outright for $35,000 US.
Property mineral tenure does not include land access but Oceanus has negotiated
access rights with the Ejido Pueblo Nuevo, the local native land owners. Oceanus has
all necessary permissions to complete surface and underground exploration, which
includes mapping and sampling, diamond drilling and ground geophysics on the La
Lajita property. Mr. Richard Gordon president and CEO of Oceanus confirmed for the
author on October 24, 2012 that all access agreements and other permits required to
carry out the work recommended in this report were in place at the report effective
date. Mr. Gordon also confirmed with the author on October 24, 2012 that Oceanus
was not aware of any environmental liabilities on the property at the report effective
date and Mercator has relied upon these assertions. The author is not aware of any
significant factors and risks that may affect access, title, or the right or ability to perform
work on the property.
65 Queen St. • Dartmouth, NS B2Y 1G4 • Ph.: (902) 463‐1440 • Fax: (902) 463‐1419 E‐mail: [email protected] • Web: www.mercatorgeo.com -500,000 mE
0 mE
500,000 mE
1,000,000 mE
1,500,000 mE
2,000,000 mE
2,500,000 mE
CHIHUAHUA
U.S.A.
3,500,000 mN
3,500,000 mN
COAHUILA
DURANGO
BAJA
CALIFORNIA
SONORA
MEXICO
BAJA
CALIFORNIA
SUR
ZACATECAS
COAHUILA
Mazatlan
SINALOA
La Lajita
3,000,000 mN
3,000,000 mN
Durango
SINALOA
CHIHUAHUA
NUEVO LEON
DURANGO
5
(
Durango
(
NAYARIT
TAMAULIPAS
ZACATECAS
JALISCO
100 Kilometres
2,500,000 mN
2,500,000 mN
SAN LUIS
POTOSI
La Lajita
NAYARIT
AGUASCALIENTES
YUCATAN
GUANAJUATO
QUERETARO
HIDALGO
JALISCO
QUINTANA
ROO
TLAXCALA
COLIMA
2,000,000 mN
CAMPECHE
EDO. DE Mexico City
MEXICO
MORELOS
PUEBLA
2,000,000 mN
Pacific Ocean
MICHOACAN
TABASCO
VERACRUZ
Belize
GUERRERO
Oceanus Resources Corporation
OAXACA
CHIAPAS
0
250
500
Figure 1
Guatemala
Kilometres
Property Location Map
Honduras
El Salvador
0 mE
500,000 mE
1,000,000 mE
1,500,000 mE
Date: Oct. 2012
2,000,000 mE
mercator
GEOLOGICAL
SERVICES
1,500,00
Projection: UTM Zone 13, Northern Hemisphere (WGS 84)
472000
2566000
470000
2564000
2566000
468000
2564000
¯
466000
219837
219855
2562000
2562000
229020
219857
186533
194007
219838
219856
220311
2560000
2560000
219854
218784
2558000
2558000
222421
Date: Oct. 2012
Figure 2
Claim Title
Projection:
WGS84 UTM 13N
Scale: 1 : 10 000
466000
468000
0
470000
500
1,000
2,000
Meters
472000
7
Las Lajitas Property Technical Report October 2012 4.0 Accessibility, Climate and Physiography The La Lajita property is located in Durango State, Mexico, approximately 110km
southwest of the state capital, Durango, centred at 468,000E/2,561,000N WGS84 Zone 13
N. The property is accessible by paved and local gravel roads from either of the main
centres of Durango or Mazatlan, where commercial international flights land from the
United States and from Mexico City (Figure 3). The property is accessed from Durango or
Mazatlan by paved federal highway Number 40 to El Salto, and then south via paved roads
to the town of La Puerta, a distance of about 70km. A gravel road in good condition leads
from La Puerta to the project area, for a total of 135km from El Salto, and a driving time of
approximately 5 ½ hours from Durango.
From Mazatlan, a paved government highway leads south to the town of Rosario for a
distance of 55km. From Rosario, a dirt road ranging from good to poor quality climbs the
western slopes of the Sierra Madre for a distance of 105km to the property. The road is very
rough and a four wheel drive is recommended. Total driving time from Mazatlan is
approximately 6 hours.
Most of the property can be accessed by 4 wheel drive vehicle along dirt roads. Many of
the historic mining properties are accessible by narrow switch back hiking trails and locals
use donkeys to carry supplies to these sites. The author accessed the property by helicopter
from the town of Pueblo Nuevo and landed at the A Zone showing.
The area of the La Lajita property is generally semi-arid and daily temperatures range from
a low of -6°C during coldest winter night time periods to daytime seasonal high
temperatures that range from 18°C to 36°C. Exploration can be completed all year long
with some minor disruption due to heavy rain during the raining season from July to
September.
The San Diego River is a main river and flows near the eastern part of the property area.
Water levels vary during the year, increasing during the rainy season of July and
September. Smaller streams that are generally dry during much of the year increase
substantially during the rainy season.
The topography in the area is generally steep and dominated by escarpments and deeply
incised stream valleys that form gorges with a generally northwest-southeast orientation.
Typical vegetation is dry scrub on steep slopes and coniferous forest and fragmented forest
on the high flatter ground. Elevations above sea level (ASL) on the property range from
500m in the deep river valleys to a high of about 2300m on the nearby ridge tops. The
main mineralized zones are located at elevations between approximately 1350m and 1400m
ASL.
Pueblo Nuevo is the closest local town and has limited amenities. It has a population of
approximately 500 inhabitants and sits at an elevation of about 1500m (Figure 3). Local
infrastructure in Pueblo Nuevo area is very limited but includes electrical power and
several telephones. The small village of La Lajita (population of approximately 25 people)
lies in the centre of the property, at the end of the access road, but has no infrastructure
400000
500000
600000
¯
_
^
2800000
2800000
U. S. A.
DURANGO
La Lajita
Project
2700000
2700000
MEXICO
!
2600000
SINALOA
EL SALTO
PUEBLO NUEVO
!
MAZATLAN
La Lajita
Project
2600000
!
DURANGO
_
^
2500000
ZACATECAS
2500000
!
Pacific Ocean
NAYARIT
Figure 3
Claims Location and
Property Access
2400000
Date: Oct. 2012
TEPIC
!
400000
500000
Projection:
WGS84 UTM 13N
2400000
Scale: 1 : 2,000,000
0
25
600000
50
100
Kilometers
9
Las Lajitas Property Technical Report October 2012 support. Most local inhabitants earn subsistence livings by farming, cattle and small scale
artisanal mining. Phone and electrical service is not available through most of the property,
but a high tension power line is located within 20km of the property. The capacity of this
line is not known to the author. Oceanus has sufficient surface rights access to allow for a
potential mining operation. This includes sufficient land access for potential tailings pond
storage areas, potential waste disposal areas, heap leach pad areas and potential processing
plant sites. However necessary permits must be in place prior to these operations taking
place.
El Salto is the largest local town in the area, with a population of 21,000. The larger
centres of Durango and Mazatlan have all the amenities of a modern city and can provide
all supplies and general support services necessary for exploration programs. Manpower for
laborer level positions associated with future exploration or mining programs would be
available from the small various towns mentioned above that occur close to the property.
Las Lajitas Property Technical Report October 2012 5.0 History 5.1General
Mining in Mexico dates back almost 500 years, when the Spaniards arrived in the country
and began mining silver in the 1520’s. During the next 300 years of Spanish rule many
minerals were extracted including silver, gold, copper, lead coal and iron. Although there
is no recorded mining history by the Spanish on the La Lajita property, mining by local
artisanal miners known as “gambusinos” has occurred. This mining is by pick and shovel
and gold is hand panned from the material mined. This type of work is the oldest known
on the property and dates back approximately 50 years. Oceanus advised Mercator that,
due to the nature of such enterprises, there are no reliable records of the metal grades or
amounts extracted by these operations. The author accepts this assertion and was also
unable to locate any records of historical mining production or deposit grades for the
property.
Seven zones of mineralization have been outlined in this report and have been labeled A to
G by Northair. Some of these are also known by historical names that represent either the
property owner or an associated mining family. Table 2 summarizes the current
mineralized zone names and provides a cross-reference to historical names used for the
prospects.
Table 2: Historical mineralized Zone Names
Zone Name
A
B
C
D
E
F
G
Soil anomaly Northair
Historical Name
Dos Hermanos
Guadaluope Prospect
No historical name
El Sol Prospect
Santo Niño Prospect
La Esperanza
Las Trabas
La Bajada Prospect
5.1MineraFuerteMayo
The earliest non-artisanal work on the property was carried out by Minera Fuerte Mayo
in 1999, at which time they completed 13 HQ diamond drill holes totalling
approximately 944m. Their program was oriented towards defining a large, bulk tonnage
gold and silver deposit in the southern portion of the 2 Hermanos concession, as well as
exploring the 2 Hermanos vein or A Zone. Details of the drill program and significant
intercepts are presented in section 9.0 of this report.
Las Lajitas Property Technical Report October 2012 5.2InternationalNorthairMinesLtd.
The most significant historical work completed on the property includes geological
mapping, soil and stream sediment sampling, rock sampling, underground sampling,
trenching, and reverse circulation drilling carried out by International Northair Mines
Ltd. (Northair) in 2004.
Geological mapping was completed on the property and focused on 1:500 scale
definition of mineralized zones and underground workings. Limited regional scale
mapping was also completed. The author has incorporated results of this mapping into
the figures used in this report.
Northair also took over 1000 rock chip samples that included continuous chip samples
from rock exposures and underground workings. In addition, the company completed
56 “continuous line samples” (CLS) from surface trenches cut by an excavator. The
average sample length for all programs was 1m and sampling results identified gold
and silver mineralization associated with all 7 mineralized zones. Significant assay
results from the CLS samples are presented in Table 3 and sample locations appear in
Figure 4. The relationship between true width and sample width is not known.
Table 3: Continuous Sample Line Summary (International Northair 2004)
Trench
1
2
24
25
26
27
includes
28
29
includes
30
includes
31
3
includes
4
includes
5
6
7
8
and
9
35
36
10
10 A
11
Zone
A
A
A
A
A
A
A
A
A
A
B
B
B
B
B
B
B
B
B
C
C
C
Length (m)
2
3
6
2
3
6
4
4
9
3
10
2
1
24
5
27
7
2
10
4
20
7
7
2
2
4
4
7
Au g/t
18.88
27.00
27.04
9.12
56.93
16.09
22.60
10.43
6.57
13.26
5.08
17.03
3.43
2.61
9.33
1.86
4.67
20.88
9.00
7.02
3.80
7.32
3.24
5.84
7.00
6.99
5.00
10.46
Ag g/t
168.0
145.3
702.2
157.0
261.7
114.2
149.0
77.8
65.3
119.0
52.3
98.0
54.0
15.2
32.6
18.1
38.3
171.0
67.9
41.8
23.1
36.4
21.9
30.0
34.0
49.0
32.3
43.6
Au50 g/t**
22.24
29.87
41.09
12.26
62.17
18.38
24.73
11.99
7.87
15.64
6.13
18.99
4.51
2.90
9.98
2.22
5.43
24.3
10.36
7.86
4.26
8.04
3.68
6.44
7.98
7.97
5.68
11.33
Las Lajitas Property Technical Report October 2012 Trench Zone Length (m)
Au g/t
Ag g/t
Au50 g/t**
33
C
5
4.09
26.6
4.62
34
C
5
3.78
22.8
4.23
13
D
2
3.16
16.0
3.48
14
E
5
13.07
91.4
14.89
15
E
7
5.69
38.1
6.45
16
E
3
10.69
94.0
12.57
17
E
7
2.56
25.7
3.07
37
E
3
5.90
45.7
6.82
38
E
3
22.42
71.7
23.85
39
E
4
13.88
67.0
15.22
40
E
3
16.07
85.7
17.78
41
E
3
6.01
51.0
7.03
42
E
2
13.42
62.0
14.66
43
E
3
8.81
45.7
9.72
46
E
4
4.96
34
5.64
includes
3
6.25
43
7.11
18
F
6
1.03
25.5
1.54
19
F
7
1.82
53.6
2.89
includes
1
7.03
47
7.97
20
G
4
6.40
25.0
6.90
21
G
11
4.81
26.7
5.35
22
G
2
2.84
5.0
2.94
47
G
3
3.23
8.0
3.39
53
G
12
18.86
13.2
19.12
includes
4
54.54
33.0
55.20
55
G
4
1.22
13.9
1.50
* Information summarized from Robertson (2004) and has not been validated by the author
**Gold to Silver ratio of 1:50 used for Au50g/t gold equivalent.
The relationship between true width and sample width is not known.
A total of 130 chip samples were collected from underground workings and were taken at
workings located at the A Zone, B Zone and small area in the F Zone. Sample lengths were
generally 1-2m but individual samples up to 10.7m were noted. Significant samples
reported by Northair included 4.5m grading 19.35g/t Au and 100g/t Ag, 5.49m grading
7.22g/t Au and 31g/t Ag, and 3m grading 10.55g/t Au and 36.6g/t Ag. More work is
needed to fully evaluate these results and determine the full width of the gold and silver
mineralized zones.
A total of 88 stream-sediment samples were collected from active stream courses, with silt
being collected from sediment traps such as areas behind rocks and logs (Figure 4). Results
show anomalous Au and Ag values within drainages below the known mineralized zones.
Additional anomalies occur in the south-western part of the property area, where they are
possibly related to extension of the A zone, and on the north-facing slope in the northwestern part of the concession block (Robertson, 2004) (Figure 4).
Grid based soil sampling was also completed on the property along 50m spaced stations.
Very strong anomalies were defined in an area locally referred to as “La Bajada”, which
lies along the structural projection between the E and F Zones (Figure 4) (Robertson 2004).
¯
13
468000
470000
472000
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1999 Drill holes - Minera Fuerto Mayo
2004 Drill holes - Northair
Trench samples - Northair
Rock samples - Northair
Stream sediments - Northair
Area of soil sampling - Northair
Claims
468000
Date: Oct. 2012
Projection:
WGS84 UTM 13N
Figure 4
Historic Exploration
Programs
Scale: 1 : 40 000
0
470000
500
1,000
2,000
Meters
472000
2556000
!
H
14
Las Lajitas Property Technical Report October 2012 In March, 2004 Northair completed a total of 20 reverse circulation drill holes for a
total of 1832m and the holes tested mineralization at zones A, B, C, D, and E. Details
and results of this drill program are reported in section 9.0 of this report.
Northair completed limited sample metallurgical test work which included cyanide leach
tests and screen metallics analysis. The results of this work are described in section 13.0 of
this report.
Las Lajitas Property Technical Report October 2012 6.0 Geological Setting and Mineralization 6.1RegionalGeology
The La Lajita project is located in the central portion of the Sierra Madre Occidental
(SMO) province (Figure 5). The Sierra Madre is one of the largest volcanic belts in the
world, and extends for over 2,000 km from the U.S. – Mexico border to southern Nayarit
State, where it is overlain by the Trans-Mexican Volcanic Belt (Figure 5). The SMO is
recognized as an extremely prospective mineral belt for gold, silver and polymetallic
mineral deposits.
The geology of northwestern Mexico is defined by the boundary between the Pacific and North
America Plates. The Baja Peninsula of California sits on the Pacific plate and is separated from
mainland Mexico by the displacement along the extensional boundary with the North America
Plate. The western boundary of the North American Plate is an extensional zone bound to the
east by the Sierra Madre Occidental, which is a north-northwest trending plateau of thick
Tertiary volcanic rocks (Figure 5).
The SMO is a silicic volcanic province which has been affected by various phases of Basin and
Range extension and strike-slip deformation since the Early Miocene (Ferrari, et al, 1999). It is
terminated to the south by the Trans-Mexican Volcanic Belt (MVB), where alkaline and calcalkaline volcanism has been active since Late Miocene and is still active today. The MVB is
thought to conceal the tectonic boundary between different tectonostratigraphic terranes
which underwent hundreds of kilometres of strike-slip displacement in Mesozoic to earliest
Tertiary times (Sedlock et al., 1993).
The basin and range province has been subdivided into three sub provinces. These consist of (1)
northwest-trending plateaus, which consist of near or horizontal plains, that are thought to
represent the original surface of the Sierra Madre Occidental, (2) the deep canyon province that
is located towards the western margin of the SMO and represented by the vertical erosion caused
by rivers, and (3) the exterior margin province that is located along the steep slopes produced by
erosion of the SMO. The marginal areas are affected by extension, but the plateaus have
undergone less net extension than provinces to the east and west (Ferrari, et al, 2007).
Cenozoic igneous rocks in northern Mexico, including the SMO, are generally thought to
reflect subduction-related continental arc magmatism that slowly migrated eastward during
the early Tertiary, and then retreated westward more rapidly, reaching the western margin
of the continent by the end of the Oligocene (Sedlock et al., 1993). The SMO is a relatively
undisturbed plateau that contains volcanic rocks associated with an extrusive magmatic episode
of mid-Tertiary age that is widely present in western Mexico. In general, the SMO contains two
large, coextensive calc-alkalic igneous sequences. The older of these sequences, which ranges in
age from late Cretaceous to Eocene, is characterized by abundant batholithic as well as volcanic
rocks and is dominantly intermediate in composition, has traditionally been called the Lower
Volcanic Complex (LVC) (Ferrari, et al, 2007).
500000
600000
700000
¯
2800000
2800000
2900000
400000
2900000
300000
CULIACAN
2700000
2700000
!
!
MAZATLAN
!
EL SALTO
PUEBLO NUEVO
!
La Lajita
Project
2600000
2600000
!
DURANGO
_
^
ZACATECAS
2500000
!
2400000
2400000
2500000
!
TEPIC
Contacts
2300000
Metamorphic and crystalline rocks
Date: Oct. 2012
Plutonic rocks
Projection:
WGS84 UTM 13N
Sedimentary rocks
Scale: 1 : 3,000,000
Volcanic rocks
300000
400000
500000
0
600000
35
Figure 5
Regional Geology
!
70
700000
140
Kilometers
2300000
Faults
17
Las Lajitas Property Technical Report October 2012 The LVC is principally represented by andesites, ignimbrites, lavas, and composite batholiths.
These rocks are best exposed where they have been uncovered by erosion in deep canyons along
the western margin of the SMO. The batholiths are also exposed on the coastal margin plain of
mainland Mexico, adjacent to the Gulf of California. The volcanic rocks are generally deformed
by faulting and tilting, and typically show signs of regional propylitic alteration. Generally, only
a few hundred metres of the LVC section is exposed, but in Tayoltita, the canyon of the Rio
Piaxtla River, in the state of Sinaloa, the LVC is exposed for more than 2,000m and includes
volcanic rocks intruded by granodioritic intrusives at the base of the section (Ferrari, et al, 1999).
The younger sequence is dominated by rhyodacitic to rhyolitic ignimbrites erupted from large
caldera complexes and is estimated that this younger sequence was produced by 350 calderas
distributed throughout the SMO. These are collectively referred to as the Upper Volcanic Series
(UVS). An alternative interpretation is that these ignimbrites were extruded through extensional
basin and range-related faults, and were generally accompanied by rhyolitic flows. The SMO
volcanics represent one of the largest ignimbrite-dominated felsic provinces in the world. They
extend in uninterrupted exposures for more than 1,200km along the plateau-like SMO. Similar
exposures extend from the plateau into surrounding fault-bounded basins and range areas of
Mexico to produce a total aerial distribution of 296,000 km2 (Sedlock et al., 1993) (Figure 5).
The UVS is an extensive sequence of volcanic and volcaniclastic rocks, although shallow
intrusions are present. These rocks form the plateau of the SMO with an average thickness of
1,000m and generally consist of ignimbrites that are the result of continuous eruptions between
34 and 27 Ma. Dating indicates that some igneous activity persisted until 23 Ma. This volcanic
sequence is dominated by rhyodacitic to rhyolitic ignimbrites, generally accompanied by rhyolite
flows and domes and small outpourings of mafic lavas. Volcanic rocks of intermediate
composition have been reported at the base of the felsic rocks in several localities throughout the
SMO (Ferrari, et al, 1999). The LVS is overlain in angular unconformity by a pumicebearing felsic lithic tuff of the UVS.
The UVS is considered to be the biggest ignimbrite unit in the world and is represented by
an alternated sequence of breccias plus rhyolitic and andesitic tuffs that are distributed
extensively throughout the SMO. These rocks are widely exposed in the higher
topographic areas of the La Lajita property.
Three major volcanic events are represented in the UVS, the first consisting of light gray
andesitic lithic tuffs that are massive in character, with lithic fragments, feldspar, quartz and
iron oxides that are cut by dikes of andesitic composition. The second volcanic event
produced a sequence of andesitic, rhyolitic and sometimes dacitic tuffs, with individual
bedded units ranging from 0.5 – 1.0m in thickness. These pyroclastic units include quartz,
feldspar and lithic fragments as well as iron oxides and are typically light gray or green to
reddish in color. Units are generally flat lying to sub horizontal with local dips up to 10° or
25°.
The third and youngest event is marked by massive, thick sequences of ignimbrites and
imbricated tuffs of andesitic to rhyolitic composition. These rocks cover a large area of the
La Lajita property and are observed in topographically elevated areas. They are typically
characterized by sub-horizontal strata displaying columnar joints.
Las Lajitas Property Technical Report October 2012 Metallic mineralization is abundant and widespread throughout northwestern Mexico, with
origin related to tectono-magmatic events that have active since Jurassic time. The types include
deposits associated with magmatic (intrusion- and extrusion-related), metamorphic, and
sedimentary rocks. The older mineralizing period is related to the magmatic event that originated
the LVC mostly during the Eocene compressional regime and a later event is related to the UVS
during the Oligocene. Intrusion-related mineralization in the northern SMO corresponds to the
end of the Laramide orogeny and the most common metals of this age are Cu, Mo, W, and PbZn; which resulted from skarn-, greissen-, and porphyry-type systems.
6.2PropertyGeology
The La Lajita property is located within the SMO and is characterized by deep ravines and
steep topography that is typical of the basin and range provinces described above. Rocks
of the LVC and the UVC are both exposed on the property and gold and silver
mineralization is thought to be associated with transitional rocks between to two volcanic
sequences (Robertson, 2004).
The LVC stratigraphy is widely distributed within the project area and is typically
represented by andesitic lithic tuff and agglomerate which are overlain by maroon andesitic
pyroclastics and volcaniclastic sediments, and a quartz-biotite lithic tuff. The andesitic
units are well exposed due to erosion on the sides of the steep hills and outcrop extensively
throughout the property area (Figure 6). The andesites are typically green to gray, fine
grained to aphanitic, massive and locally contain feldspar phenocrysts, calcite and chlorite.
The unit shows moderate to strong propylitic alteration and is the host rock of the majority
of the mineral deposits in the area. It represents a good general target for future exploration.
The andesitic stratigraphy is unconformably overlain by UVS.
During the Tertiary (Eocene and Oligocene) the entire stratigraphic sequence was intruded
by porphyritic andesite, rhyolite and dacite bodies plus larger quartz monzonite and
granodiorite intrusions. Two types of intrusive rock have been identified at La Lajita,
property, these being quartz rhyolite porphyry and a magnetite-bearing, dark green, finegrained andesite that occur as dikes and irregular intrusive masses. The quartz porphyry
contains conspicuous 1-5 mm ragged quartz phenocrysts and features specular hematite in
some exposures. It is in fault contact with the volcaniclastic sediments at the D Zone.
Intrusive rocks at the G Zone are interpreted as being related to the same system. The
intrusive bodies are considered to be the source of the mineralization and responsible for
strong pervasive hydrothermal alteration including propylitic alteration and silicification
(Robertson, 2004).
65 Queen St. • Dartmouth, NS B2Y 1G4 • Ph.: (902) 463‐1440 • Fax: (902) 463‐1419 E‐mail: [email protected] • Web: www.mercatorgeo.com ¯
467000
467500
468000
468500
469000
Approximate contacts
Approximate faults
Alteration limits
Breccia zones
F Zone
Claims
G Zone
Las Lajitas Tuff
2561500
2561500
Colluvium, alluvium
Intrusive andesite
Quartz porphry
Undivided volcanics
Maroon pyroclastics and
volcaniclastic sediments
Quartz biotite lithic tuff
Green andesitic lithic tuff
19
2561000
2561000
E Zone
B Zone
C Zone
D Zone
A Zone
2560500
2560500
Date: Oct. 2012
Projection:
WGS84 UTM 13N
Geology after International Northair Mines Ltd, 2004.
467000
Figure 6
Property Geology and
Mineralized Zones
Scale: 1 : 10 000
467500
468000
468500
0
120
240
480
Meters
20
Las Lajitas Property Technical Report October 2012 6.3StructuralGeology
Two main structural events have been recognized within the property area. The oldest
structures show a general NE-SW trend and are possibly related to late intrusives that
affected the Paleocene rocks throughout region. This brittle deformation is related to the
post-Laramide deformation phase and is generally manifested by NE-SW and NW-SE
faults. These faults generally show dextral, lateral displacement and generated a horst and
graben setting that controlled the Tertiary and younger clastic sedimentation (Ferrari, et al,
2007) (Figure 7).
A second and younger structural event affected much of the UVS and is associated with a
regional structural system with a preferred NW-SE orientation that divides the SMO into a
series of blocks of basin and range type. The faults show normal, near-vertical throw that
resulted in UVS and LVC rocks being in structural contact. This system is thought to be the
most important in the region as it is these younger structures that localize silver and gold
mineralization of economic interest.
The regional structural framework includes deep seated extensional and transverse fault
systems that trend both northwest and east-west, and elements of both sets localize
mineralization at La Lajita. Work on the property by Northair indicates that northwest
striking structures are both high angle and moderately southwest dipping and that they
record post-mineralization tectonic activity. This includes multiple reactivations of fault
zones. The majority of the vein systems on the property are north-northwest trending and
westerly dipping, but other orientations also host mineralization. Some mineralized vein
systems accommodated post-mineral tectonic movement that is locally evidenced by
brecciation and alteration (Robertson, 2004).
6.4Mineralization
Known gold and silver mineralization at the La Lajita property occurs within seven
distinct alteration zones which are identified as the A to G Zones. During the recent
site visit the author was flown by helicopter to the property and visited the A Zone and
B Zone and was able to observe a number of other alteration zones on the property
from the air.
Mineralization generally occurs as veins, stockwork and breccia zones along and adjacent
to fault zones. Presence of relatively minor amounts of sulphide minerals along with
hematite (locally as specularite) within these alteration zones indicates association with a
low-sulfidation type epithermal system. The author observed visible gold mineralization
host rocks at both the A and C zones. Other workers have described amethystine quartz
veins and vein breccias at the D zone and quartz (+/- epidote) veining and silicification at
the G Zone (Robertson, 2004).
Rodeo half-graben
(32.3-30.6 and ca. 24 Ma)
E
E
Culiacan
go
ran
Du loa
a
Sin
RioChicho-Otinapa graben
(ca. 11 Ma)
Tayolita graben
(< 20 Ma)
E
Durango
Gu
lifo
f
lf o a
i
rn
Ca
W
Southern Sinaloa graben
(ca. 13-10 Ma)
La Lajita
Property
Mezquital graben
(< 30 Ma)
Mazatlan
0
W
100
50
Kilometres
Legend
Caldera
(inferred)
Normal fault
Main roads
State boundary
Accomodating zone
with tilting inversion
W
Zone with WSW tilting
Main normal fault
E
Zone with ENE tilting
Figure 7
Structural Geology
Modified from Ferrari et al. (2007).
Date: Oct. 2012
mercator
GEOLOGICAL
SERVICES
22
Las Lajitas Property Technical Report October 2012 Alteration and mineralization is represented by multiple phases of silicification localized by
structural conduits. Boiling is evidenced by banding and micro-textured hydrothermal
brecciation. Amethyst and green – yellow tinted quartz occur at La Lajita, which are
commonly found in association with high grade silver and gold bearing veins arrays
elsewhere within the SMO (Robertson, 2004).
Robertson (2004) suggests that high grade gold occurs in ore shoots within mineralized
vein structures and that due to the early stage of exploration by Northair, and lack of
subsequent detailed exploration, strike lengths and spatial systematics of mineralized shoots
have not yet been established. Drilling results to date show that gold and silver mineralized
zones can exceed 100 meters in strike length and have true widths ranging from 1.5m to
greater than 15m. Similar dimensions were confirmed by the author in field observations at
the A and B Zones. Wider zones of high grade gold and silver mineralization may occur in
areas influenced by structural intersections.
A Zone mineralization appears to be associated with a northwest striking fault zone that
dips approximately 45o-55o to the southwest. As noted above, weakly disseminated
sulphide and isolated visible gold mineralization were observed at this location by the
author, hosted by brecciated, maroon, andesitic pyroclastic rocks showing hematitic and
silicic alteration. The A Zone is locally 15-20m thick as measured in surface exposures and
grab sampling of mineralization within this zone was completed by the author (Figure 8).
Figure 8: A Zone Workings and Sample Location 65 Queen St. • Dartmouth, NS B2Y 1G4 • Ph.: (902) 463‐1440 • Fax: (902) 463‐1419 E‐mail: [email protected] • Web: www.mercatorgeo.com 23
Las Lajitas Property Technical Report October 2012 B and C Zone mineralization is also associated with a hematitic, silicified breccia
developed in a maroon andesite. Traces of visible gold mineralization were also observed
by the author in samples collected from the B Zone. Results of historic mapping indicate
that this alteration zone is thicker than the A Zone, locally dips between 45o-50o to the
southwest and is defined in surface exposures over a strike length of 150m (Robertson,
2004) (Figure 9).
Figure 9: B Zone Workings and Sample Location The author did not visit the D Zone but previous explorers describe it as having
amethystine and chalcedonic quartz vein associated mineralization occurring along a
regional west northwest striking fault (Robertson, 2004) (Figure 4). The zone generally
follows a contact between altered porphyry stockwork to the north and volcanics to the
south and numerous small gambusino workings occupy one portion of the zone. Gold and
silver mineralization at the E Zone is associated with a 20m wide hematitic, silicic breccia
that occurs along a west dipping fault. Robertson (2004) interpreted the E Zone to be a
continuation of the A Zone, located 350m to the south, but this has not been fully assessed
to date. More work is needed to fully test the model (Figure 4).
The F Zone is located approximately 600m northwest of the E Zone and hosts gold
mineralization within a hematitic, silicified breccia that occurs with maroon volcanics
(Figure 4). The G Zone is located approximately 600m to the northeast of the E Zone and
little is known about the gold mineralization in this area. The occurrence is based on
historical information plus mapped presence of old mine workings and trenches (Robertson,
2004). Presence of significant gold or silver mineralization at this location has not been
confirmed to date by Oceanus.
Las Lajitas Property Technical Report October 2012 7.0 Deposit Type Volcanic-related epithermal precious metal deposits of middle Tertiary age occur
throughout the SMO and both low-sulfidation Ag-Au (±Pb-Zn-Cu) veins, and highsulfidation Au-(Cu) type deposits occur. Low sulfidation deposits generally display quartz
± calcite veins with chlorite + adularia + sericite alteration and these deposits are Agdominated at the lower levels of the volcanic column, and Au-dominated towards the top of
the sequence (Wisser, 1966). High sulfidation deposits are less common within the SMO,
but several occurrences have been identified in the last few years. These are important
targets for mineral exploration because of their potential for large associated gold content
(e.g. deposits such as Mulatos and El Sauzal in Mexico). Based on the limited exploration
completed on the La Lajita property to date, all mineralization appears to be related to low
sulfidation alteration systems located near the top of the LVC.
Based on the above, the La Lajita property and its associated mineralization are best
classified as low to intermediate sulfidation state epithermal Au-Ag deposits. This group of
deposits is one of the world’s major sources of gold and silver and the largest source in
Mexico. They are distinguished from high sulfidation deposits primarily on the basis of
their associated sulfide mineralogy (Corbett, G.J., 2002) (Figure 10). Low-sulfidation
deposits contain pyrite-pyrrhotite-arsenopyrite and high Fe sphalerite, in contrast to the
pyrite-enargite-luzonite-covellite assemblage that often marks high-sulfidation deposits.
Low sulfidation mineralization typically formed from hydrothermal fluids influenced by
igneous intrusions and occur at relatively low temperatures (<200°C) and in moderate
pressure conditions. Mineralization occurs within quartz veins with local carbonate, and
associated wallrock alteration including illites and clays (Corbett and Leach, 1998) (Figure
10). Many low sulfidation veins are well banded and each band represents a separate
episode of hydrothermal mineral deposition.
Epithermal deposits form near surface and veins are the common hosts of economically
important metals such as gold, silver, lead and zinc. Deposits form in extensional tectonic
settings having well developed fracture systems and normal faults such as those present
within the SMO. Association with well differentiated, sub-aerial pyroclastic rocks and subvolcanic intrusions is also notable. At the La Lajita property, gold and silver are the main
economic minerals present and are associated with hematized quartz breccias, plus
amethystine and chalcedonic quartz veins that occur within wide, fault related breccias
showing evidence of strong hydrothermal alteration. Mineralization specifically occurs in
breccia zones where silicification is present along with stockwork quartz veins and veinlets,
plus hematite and illite-sericite-clay wallrock alteration.
Alteration and mineralization reflect multiple phases of silicification localized along faults
that acted as mineralizing fluid conduits. Boiling textures in veins are common in this
setting and also occur as banding and micro-texturing within associated hydrothermal
breccias. Both amethyst and green-yellow sericitic alteration occurs within quartz veining
systems and is found in association with gold and silver mineralized breccia zones.
Epithermal textures such as banded and crustiform chalcedony and crystalline quartz are
Las Lajitas Property Technical Report October 2012 Figure 10: Genesis of Epithermal Mineral Deposits (White, 1994) also evident in some mineralized zones. Several phases or stages of vein formation were
noted to occur but may not all have associated silver-gold mineralization.
Mineralization at La Lajita occurs within faulted and brecciated andesitic pyroclastics and
faulting appear to have acted as conduits for mineralizing fluids. However, postmineralization displacement has been noted in some areas and has brecciated vein material
(Robertson, 2004).
The SMO hosts a number of world class low sulfidation gold and silver deposits of which
the majority are being developed as open pit operations. However, a number of vein hosted
underground deposits are also present. Tables 4a and 4b outline grade and production rates
from selected low sulfidation open pit and underground gold and silver mines. The location
of these operations in relation to the San Diego property is outlined in Figure 11.
Table 4a: Select Open Pit gold and silver mines within the SMO
Open Pit Bulk Tonnage Deposits
Company
Tonnes
(,000)
Rounded
Gold
Grade
g/t
Silver
Grade
g/t
Ocampo Reserves: Proven and Probable
Ocampo Resources: Measured and Indicated
Gammon Gold
Gammon Gold
70,000
35,000
0.56
0.20
24.00
9.00
Ocampo: Resources - Inferred
Gammon Gold
20,000
1.37
81.00
Pinos Altos: Reserves - Proven (open pit)
Pinos Altos: Reserves - Probable (open pit)
Pinos Altos: Reserves - Probable (underground)
Pinos Altos: Resources - Indicated (open pit)
Agnico Eagle
Agnico Eagle
Agnico Eagle
Agnico Eagle
880
18,000
23,000
7,000
1.51
2.05
2.92
0.67
26.35
49.30
86.87
8.30
Deposit
Las Lajitas Property Technical Report October 2012 Pinos Altos: Resources - Indicated (underground)
Pinos Altos: Resources - Inferred (open pit)
Agnico Eagle
Agnico Eagle
8,500
12,000
1.11
1.02
41.78
15.33
Pinos Altos: Resources – Inferred (underground)
Agnico Eagle
4,000
2.42
43.41
Palmarejo: Reserves - Proven
Palmarejo: Resrves - Probable
Palmarejo: Resources - Measured
Palmarejo: Resources - Indicated
Coeur
Coeur
Coeur
Coeur
4,500
9,000
1,600
3,000
2.80
1.56
1.24
1.56
221.45
133.43
100.46
123.17
Palmarejo: Resources - Inferred
Coeur
12,000
1.56
89.27
Argonaut
170,000
0.32
0.00
Castillo: Resources -Measured and Indicated
(Including P&P Reserves)
Castillo: Resources - Inferred
Argonaut
43,000
0.42
0.00
 Note: These figures are NI 43-101 compliant resources and reserves summarized from company
websites and have been publicly disclosed. They are used as examples only. These projects are not
considered adjacent properties and occur at a distance of over 100 km away from the San Diego
property (Figure 11).
 The author has not been able to verify this information and mineralization on these properties is not
indicative of mineralization on the La Lajita property that is the subject of this report.
Table 4b: Select Underground gold and silver mines within the SMO
Underground High Grade Vein Deposits
Ore Deposit
Tayoltita: Reserves -Proven
Tayoltita: Reserves - Probable
Tayoltita: Resources - Inferred
La Parrilla: Reserves - Proven (Oxide plus
Sulphide)
La Parrilla: Reserves - Probable (Oxide plus
Sulphide)
La Parrilla: Resources - Measured (Oxide
plus Sulphide)
Tonnes
(,000)
Rounded
Gold
Grade g/t
Silver
Grade g/t
4,000
5.04
348
2,000
4.07
306
17,000
3.67
330
First Majestic
300,000
0.00
302
First Majestic
200
0.00
287
Company
Primero
Mining
Primero
Mining
Primero
Mining
First Majestic
2,000
0.00
264
La Parrilla: Resources – Indicated (Oxide
Plus Sulphide)
First Majestic
900
0.00
245
La Parrilla; Resources - Inferred
First Majestic
8,000
0.00
169
La Encantada: Reserves - Proven
La Encantada: Reserves - Probable
La Encantada: Reserves - Measured
La Encantada: Resources - Indicated
La Encantada: Resources - Inferred
First Majestic
First Majestic
First Majestic
First Majestic
700
4,500
450
5,000
0.00
0.00
0.00
0.00
354
186
399
156

First Majestic
2,500
0.00
220
Note: These figures are NI 43-101 compliant resources and reserves summarized from company
websites and have been publicly disclosed. They are used as examples only. These projects are not
considered adjacent properties and occur at a distance of over 100 km away from the San Diego
property (Figure 11).
Las Lajitas Property Technical Report 
October 2012 The author has not been able to verify this information and mineralization on these properties is not
indicative of mineralization on the La Lajita property that is the subject of this report.
Figure 11: Location of Major Open Pit and Underground Epithermal Au-Ag Deposits
Las Lajitas Property Technical Report October 2012 8.0 Exploration Limited exploration work has been completed by Oceanus on the La Lajita property and to
date this work has focused on the compilation of past exploration. Limited interpretation
by Oceanus of past exploration results indicates that spatial correlation may exist between
some of the mineralized zones defined by sampling and drilling in 1999 and 2004. As
described below, two main trends have been identified, but more exploration is needed to
fully assess the continuity concept.
An upper mineralized trend is defined by potential correlation of the F Zone - La Bajada, E
Zone, A Zone and the southern extension of the A Zone (Figure 12). These zones all occur
near the same topographic horizon and host gold and silver mineralization within hematitic
quartz breccias over a surface extent of approximately 1.5 km. Alteration was defined by
Northair around these mineralized zones and projection of the alteration along a constant
elevation contour passes through all of the mineralized zones and suggests that a northwest
structural trend connects all of these zones (Figure 12).
A similar northwest trending structural trend of alteration and mineralization provides
potential correlation between the B Zone, C Zone and D Zone mineralization, which occur
at a lower elevation than that mentioned above (Figure 12). The lower elevation trend hosts
gold, silver and alteration association that is discernible at surface for a distance of at least
1 km. More work is needed to fully test these trends and to define internal continuity of
gold and silver mineralization. Future exploration planned by Oceanus will assess
continuity of alteration and mineralization along both strike and dip components of these
trends.
The limited work by Oceanus to date has specifically outlined the following points:
1) historic exploration has identified northwest structural trends within the mineralized
alteration zones that are open along strike
2) mineralized and alteration zones sit within geological and structural settings that
show similarities in the nature and distribution of gold and silver mineralization
3) mineralized and altered zones frequently occur at common topographic elevations
4) mineralized and altered zones show potential strike and dip correlation at surface
over distances of at least 1 km.
5) additional exploration is needed to fully evaluate these preliminary ideas
Oceanus has also completed limited compilation of the Northair work on the property.
Collectively, historic sampling, drilling and underground sampling have defined the
mineralized breccia zones in 3 dimensions at several locations and along strike. The work
completed by Northair which was confirmed by the author has defined strong gold and
silver mineralization over significant widths.
Preliminary review of Northair data by Oceanus and the author suggests that wider widths
of lower gold and silver mineralization were not considered significant by Northair but
should be the focus of ongoing exploration by Oceanus. Reweighting of these sample
468000
468500
469000
Section Line
Geology interpretation
2562000
2562000
¯
467000
Approximate faults
Alteration limits
Breccia zones
Colluvium, alluvium
Intrusive andesite
Quartz porphry
F Zone
G Zone
Las Lajitas Tuff
2561500
2561500
Undivided volcanics
Oceanus Claims
29
2561000
2561000
E Zone
A'
A
B Zone
C Zone
D Zone
A Zone
2560500
Date: Oct. 2012
Projection:
WGS84 UTM 13N
467000
Figure 12
La Lajita Preliminary
Geological Interpretation
Scale: 1 : 10 000
467500
468000
468500
0
120
240
480
Meters
30
Las Lajitas Property Technical Report October 2012 intervals from drilling, trenching and underground sampling over wider widths could help
to better understand the current economics of wider gold and silver mineralized zones and
also direct future exploration efforts by Oceanus.
Oceanus recalculated the significant drill intercepts reported by Northair 2004 over wider
intervals and these new intercept widths are reported in Table 5. In addition, intercepts were
also calculated using an Au50 grade ratio of gold to silver equal to 1:50. The original
significant intercepts reported by Northair are presented in section 9.0 of this report.
The broader recalculated intersections were calculated using a factor of 0.25g/t which
represents the difference between $400 Au in 2004 to $1600 Au today. These results are
presented for comparison purposes only and more work is needed to fully evaluate these
results. The recalculated significant intervals are reported in Table 5. The relationship
between sample length and true width is not known.
Table 5: *Significant RC Drilling Results Recalculated from Northair (2004)
Hole ID
Zone
From (m) To (m)
Length (m)
Au (g/t)
Ag (g/t)
TRC-04-001
A
19.8
29.0
9.2
2.76
20.6
TRC-04-002
A
16.8
22.9
6.1
3.41
26.2
TRC-04-003
A
15.2
16.8
1.5
3.26
30.3
TRC-04-004
A
16.0
22.9
6.9
0.25
6.3
TRC-04-005
A
48.0
52.6
4.6
3.79
15.5
TRC-04-006
A
17.5
28.2
10.7
8.19
46.2
TRC-04-020
A
70.1
80.8
10.7
4.11
9.7
TRC-04-007
E
14.5
18.3
3.8
1.61
10.0
TRC-04-008
E
16.0
28.2
12.2
0.92
6.2
TRC-04-009
E
13.0
18.3
5.3
0.67
4.9
and
E
22.9
29.0
6.1
2.74
19.4
TRC-04-010
E
15.2
20.6
5.3
2.01
5.9
and
E
25.9
32.8
6.9
1.12
6.0
TRC-04-011
E
54.1
62.5
8.4
1.59
12.2
TRC-04-012
B
137.9
144.0
6.1
0.82
4.0
and
B
161.5
171.5
9.9
0.58
3.3
TRC-04-013
B
120.4
131.1
10.7
3.16
16.5
TRC-04-019
B
196.6
204.2
7.6
0.19
7.1
TRC-04-014
D
32.8
35.1
2.3
4.66
9.7
TRC-04-015
D
45.0
53.3
8.4
1.81
10.0
* Information recalculated from Robertson (2004) and has been validated by the author
** Au50 is a calculated field where the ratio of gold to silver is 1:50
Au50 (g/t)**
2.93
3.93
3.86
0.37
4.10
9.14
4.30
1.81
1.04
0.77
3.13
2.12
1.24
1.83
0.90
0.58
3.49
0.33
4.85
2.01
Figure 13 shows recalculated gold values posted for reverse circulation drill hole TRC-04013 (10.7m @ 3.16g/t Au), underground chip sampling (20m @ 3.80 g/t Au) and surface
trench sampling for trench CSL-3 and 3b (24m @ 2.61g/t Au). While this cross section is
limited in its extent it does demonstrate that wide intervals of gold and silver mineralization
do exist within the known mineralized breccia zones and should be considered in future
exploration plans. The relationship between sample length and true width is not known.
65 Queen St. • Dartmouth, NS B2Y 1G4 • Ph.: (902) 463‐1440 • Fax: (902) 463‐1419 E‐mail: [email protected] • Web: www.mercatorgeo.com A
10,040E
10,060E
TRC-04-013
1440 m
10,080E
10,100E
A’
Cross Section
RC Hole TRC-04-013
B ZONE
Mineralized Fault Zone
~ 50 m wide
1420 m
1400 m
Breccia
Silicification
Hematite
Rhyolite tuff
1380 m
Andesitic pyroclastics
Crystal lithic tuff
Intrusive andesite
Guadalupe
Main Adit
Level
20 m @ 3.80 g/t Au
Geology after International Northair Mines Ltd.
Figure 13: Cross Section RC Hole TRC-04-013
10.7m @ 3.16 g/t Au
31
CSL 3 & 3B
24m @ 2.61 g/t Au
32
Las Lajitas Property Technical Report October 2012 9.0 Drilling No drilling has been completed by Oceanus on the La Lajita property. The drilling
described below is historic in nature.
9.1MineraFuerteMayo
Minera Fuerte Mayo drilled 13 HQ holes totalling approximately 944m in 1999. Their
program was oriented towards defining a large bulk tonnage deposit in the southern portion
of the 2 Hermanos concession, as well as exploring the 2 Hermanos vein or A Zone.
Oceanus acquired a copy of Minera Fuerte Mayo drill logs and assay results and the author
has reviewed this information. Limited information was available to the author in regard to
this drilling but drill holes intersected moderately encouraging gold values within the vein
system, but there was extremely poor core recovery within mineralized intervals and no
core remains from this work period. Several drill holes targeted the A Zone mineralization
and a number of holes appear to have tested a potential bulk gold mineralized zone along
strike from this zone. The author is not certain of the drilling procedures followed. The
relationship between sample length and true width is also not known, nor is the orientation
of mineralization to drill hole intercepts. Significant drilling intersections from the 1999
program appear in Table 6 and Figure 14 presents associated drill hole locations. .
Table 6: *Significant Drilling Intercepts From Minera Fuerte Mayo - 1999
Au
Ag
Au50**
Hole
Zone From (m) To (m) Length m) (g/t
g/t
g/t
A
LL-99-01
93.4
96.6
3.2
0.04
10.41
0.25
A
LL-99-02
69.0
79.8
10.8
0.57
23.44
1.04
LL-99-03
21.7
28.1
6.4
0.84
34.44
1.53
A
LL-99-04
92.2
93.7
1.5
0.20
13.00
0.46
A
LL-99-05
81.4
85.9
4.5
0.82
28.00
1.38
LL-99-06
34.8
50.3
15.5
1.57
26.57
2.10
LL-99-07
32.6
39.7
7.1
0.21
21.30
0.64
LL-99-08
82.0
92.7
10.7
0.28
9.30
0.47
LL-99-09
61.5
70.1
8.6
0.17
14.56
0.46
LL-99-10
68.3
78.9
10.6
0.09
14.16
0.37
LL-99-12
93.3
95.7
2.4
0.12
9.38
0.30
* Information summarized from Robertson 2004
** Au50 is a calculated Au equivalent field where the ratio of gold to silver is 1:50
9.2InternationalNorthairMinesLtd.
In March, 2004 International Northair Mines Ltd. completed a total of 20 reverse
circulation drill holes for a total of 1832m. These holes tested mineralization at zones
A, B, C, D, and E. The drill program was performed by Layne de México, S.A. de C.V.
with a Drill Systems W-750 “buggy”-style rig having an articulated center that carries the
compressor. Figure 14 presents drill hole locations and hole location, orientation and depth
data appear in Table 7.
467800
468000
468200
468400
468600
H 1999 Drill holes - Minera
!
and Fuerto Mayo
H 2004 Drill holes - Northair
!
2561200
2561200
¯
467600
Approximate faults
Alteration limits
Breccia zones
TRC-04-008
TRC-04-007
H!
!
H TRC-04-009
H
!
H TRC-04-010
!
Las Lajitas Tuff
TRC-04-011
Undivided volcanics
H
!
TRC-04-013
H
!
TRC-04-012
H
!
LL-99-01
H
LL-99-02 !
H
!
H
!
!
H
H
!
H
!
H
H!
!
C Zone
TRC-04-019
H
!
LL-99-03
D Zone
!TRC-04-018
H
TRC-04-002
TRC-04-016
H
TRC-04-017 !
TRC-04-001
2560400
467400
467600
LL-99-12
H
!
Date: Oct. 2012
Figure 14
Historical Drill
Hole Locations
Projection:
WGS84 UTM 13N
LL-99-13
467800
TRC-04-014
! TRC-04-015
H
2560600
2560600
LL-99-06!
H
H!
LL-99-04 !
A Zone
H
LL-99-05
LL-99-07
H
!
LL-99-08 !
H
LL-99-09
H LL-99-10
!
LL-99-11
H
!
Oceanus Claims
33
TRC-04-005
TRC-04-006
TRC-04-003
2560800
2560800
TRC-04-004
TRC-04-020
B Zone
2561000
2561000
E Zone
Colluvium, alluvium
Intrusive andesite
Quartz porphry
Scale: 1 : 5000
468000
468200
0
50
100
200
Meters
34
Las Lajitas Property Technical Report October 2012 Table 7: RC Drill Hole Data for Northair Program - 2004
Hole
Prospect
UTM N (m)
UTM E (m)
Elevation (m)
TRC-04-001
TRC-04-002
TRC-04-003
TRC-04-004
TRC-04-005
TRC-04-006
TRC-04-007
TRC-04-008
TRC-04-009
TRC-04-010
TRC-04-011
TRC-04-012
TRC-04-013
TRC-04-014
TRC-04-015
TRC-04-016
TRC-04-017
TRC-04-018
TRC-04-019
TRC-04-020
A Zone
A Zone
A Zone
A Zone
A Zone
A Zone
E Zone
E Zone
E Zone
E Zone
E Zone
B Zone
B Zone
D Zone
D Zone
D Zone
D Zone
C zone
B Zone
A Zone
2560688.88
2560726.12
2560752.60
2560767.48
2560723.91
2560752.45
2561061.18
2561061.22
2561048.70
2561039.98
2560983.88
2560887.06
2560923.87
2560707.59
2560706.89
2560693.89
2560692.69
2560756.32
2560805.59
2560756.79
467721.59
467720.32
467724.99
467719.87
467687.75
467722.16
467610.93
467615.63
467613.25
467616.52
467617.05
467845.75
467864.20
468440.92
468440.28
468401.66
468401.27
467971.10
467853.93
467681.78
1538.95
1535.14
1533.85
1533.85
1547.11
1533.85
1465.82
1465.98
1467.60
1468.51
1473.01
1483.59
1477.32
1431.45
1431.36
1430.93
1430.87
1445.65
1481.24
1547.37
Azimuth
(deg.)
88
88
88
88
103
358
18
56
68
68
63
43
43
18
18
13
68
-
Inclination
(deg.)
-60
-60
-60
-60
-45
-90
-70
-55
-90
-61
-60
-70
-65
-45
-65
-50
-70
-65
-65
-90
Depth
(m)
76.20
54.86
45.72
45.72
76.20
45.72
54.86
37.34
36.58
40.39
76.20
228.60
170.69
88.39
85.34
80.77
50.29
211.84
239.27
86.87
Drilling at the A and E Zones intersected the down dip extension of surface
mineralization exposed in the old workings. Assay results returned gold and silver
mineralization within a hematitic, silicified breccia occurring within maroon
pyroclastic rocks. The author is not certain of all the detailed drilling procedures followed.
The relationship between sample length and true width is also not fully understood, due to
the intersection angels of drill holes and mineralization. Robinson (2004) reported that the
B Zone mineralization has a rough north-south strike and dips approximately 500 to the
west. The true width of the zone reportedly ranges from 5m to over 15m along its strike
length.
Significant results of the A Zone and E Zone drilling are summarized in Tables 8 and 9
below.
Table 8: *Significant RC Drilling Results A Zone (Northair 2004)
Hole
From(m)
To(m)
Length (m) Au (g/t)
Ag (g/t)
TRC-04-001
21.34
25.15
3.81
5.10
26.5
TRC-04-002
18.29
22.10
3.81
4.85
26.8
TRC-04-003
15.24
16.76
1.52
3.26
30.3
TRC-04-004
22.10
22.86
0.76
1.10
6.6
TRC-04-005
48.77
51.05
2.29
6.13
24.6
TRC-04-006
17.53
22.10
4.57
16.87
122.3
TRC-04-020
73.15
76.20
3.05
13.60
18.4
* Information from Robertson (2004) and has not been validated by the author
Las Lajitas Property Technical Report October 2012 Table 9: *Significant RC Drilling Results E Zone (Northair 2004)
Hole
From(m)
To(m)
Interval
Au (g/t)
Ag (g/t)
TRC-04-007
15.24
16.76
1.52
3.04
15.9
TRC-04-008
17.53
19.81
2.29
3.41
14.6
TRC-04-009
13.72
15.24
1.52
1.52
7.7
and
23.62
27.43
3.81
4.09
15.8
TRC-04-010
16.76
19.05
2.29
4.33
9.7
and
29.72
32.00
2.29
2.38
10.0
TRC-04-011
55.63
59.44
3.81
3.20
23.3
Northair drilling of the B, C and D Zones was of a reconnaissance nature but, as outlined
below, the holes did encounter significant intersections of hematized, silicified breccia and
stockwork veining, with gold and silver mineralization (Robertson, 2004).
The hole targeted to intersect the C Zone did not return significant gold values and
apparently failed to penetrate the zone. It appears that surface mineralization may have
been cut off by a high-angle fault displacing the mineralization at depth.
Drilling at the D Zone showed amethystine and chalcedonic quartz veins and vein breccias
in a wide fault breccia (Robertson 2004). Significant assay results from the B and D Zone
drilling are summarized in Tables 10 and 11.
Table 10: *Significant RC Drilling Results B Zone (Northair 2004)
Hole
Depth(m)
To(m)
Interval
Au (g/t)
Ag (g/t)
TRC-04-012
140.21
140.97
0.76
3.76
6.3
TRC-04-013
121.16
131.06
9.91
3.38
17.0
Table 11: *Significant RC Drilling Results D Zone (Northair 2004)
Hole
Depth(m)
To(m)
Interval
Au (g/t)
Ag (g/t)
TRC-04-014
33.53
35.05
1.52
6.87
10.9
TRC-04-015
45.72
48.01
2.29
2.27
7.0
including
45.72
46.48
0.76
5.18
9.6
and
51.05
51.82
0.76
11.20
56.2
Las Lajitas Property Technical Report October 2012 10.0 Sample Preparation, Analyses and Security No sampling has been completed by Oceanus. However, Northair completed an RC drilling
and rock sampling programs on the property and historic reports used in the preparation of
this technical report outline sample preparation, analyses and security measures used by
Northair during their 2004 exploration program. The author feels that the sampling
completed Northair followed industry standards for the time and that associated results
verify the nature of mineralization found within specific mineralized zones on the property.
All sample preparation and methods used are reported below and samples were analyzed by
ALS Chemex in Mexico and Canada, and ALS is an ISO Certified laboratory and
independent of the issuer.
10.1SamplePreparation
Northair collected samples from RC drill cuttings nominally 2.5 ft (~0.75m) intervals in
known mineralized zones and at 5 ft (~1.5m) intervals through the remainder of the drill
hole. Samples were quartered on site and an A and B split were prepared, a sample number
assigned and secured in a poly plastic sample bag. Sample groups of 6 were bagged in
large sample bags that were secured before delivery by Northair to ALS-Chemex (ALS) in
Hermosillo, Sonora.
10.2Analysis
Samples were delivered by Northair staff to ALS and all samples were prepared in Mexico
and then sent to Vancouver, Canada for final analysis. All samples were assayed for gold
and silver using Fire Assay (FA) methods and Atomic Absorption Spectrometry finish
method (Au-AA24- ALS Code). Over limit samples for gold and silver were also analyzed
by FA and gravimetric finish method (Au-AG-GRA22 -ALS Code)) for quantitative
analysis. Samples were also analyzed for 50 Element package by Aqua Regis and ICP-MS
and ACP-AES (ALS Code).
10.3QualityAssuranceandControl(QAQC)
Northair employed a QAQC program that included the insertion of field blanks, field
duplicates and field standards. Duplicates and blanks were inserted at a frequency of one in
every 25 samples. Commercial standards from CDN Resource Laboratories in Delta, BC,
Canada were used and these samples were inserted at a frequency of one in every 35
samples. Results from these samples were monitored to make sure they fell within
acceptable standards. Northair reviewed QAQC program results and deemed these to be
acceptable for exploration program purposes.
10.4Security
All Northair samples were reported as being under the control of Northair staff at all times
and a clear chain of custody from the drill to the lab is described in associated reporting.
Las Lajitas Property Technical Report October 2012 Independent samples collected by the author were in control of the author at all times and
secured and tagged in poly plastic bags. All of the author’s samples were collected,
bagged, tagged and sent via courier to ALS Chemex in laboratory in Zacatecas, Mexico.
These samples were analyzed by quantitative analysis FA/Gravimetric methods (FAGRAV ALS Code). Two quality control commercial standards were inserted by the author
into the sample stream and ALS utilized in-house QA/QC standards in all laboratory
procedures.
Las Lajitas Property Technical Report October 2012 11.0 Data Verification 11.1SiteVisit
The author completed a site visit to the La Lajita property on August 21st and 22nd, 2012
in the company of Mr. David Duncan, P. Geo., Director of Oceanus. During the visit the
author inspected a small scale underground mining operation at the A Zone and B Zone and
sampled vein and the hangingwall breccia zones in both locations. In addition, grab
samples from Gambusinos ore piles were collected at those locations. The author also
completed a visual inspection by helicopter of a number of other mineralized zones on the
property.
11.2IndependentSampling
A total of 9 samples were collected by the author during the August, 2012 site visit. These
were sourced from two mineralized zones on the property. Samples included chip samples
across altered and mineralized bedrock intervals, and grab samples of mineralized rock
from production stockpile material from the small scale mining operations. This sampling
was not comprehensive in nature and more detailed and systematic mapping and sampling
of such exposures is needed to fully assess all altered and mineralized zones on the La
Lajita property.
All independent sampling followed industry standard procedures and the author relied upon
results of QAQC samples inserted into the sample stream and assay quality control
procedures utilized by the commercial lab to assess associated data quality. The
independent sampling carried out by the author did not exactly duplicate sample points
from previous explorers but is thought to be representative of the styles of mineralization
that occur within mineralized zones present on the property. No samples from drill core
were available to be collected during the site visit.
All samples were collected bagged, tagged and sent via courier to the ALS laboratory in
Zacatecas, Mexico and all samples were under the control of the author at all times prior to
shipment by the courier. These samples were analyzed by quantitative analysis
FA/Gravimetric methods (FA-GRAV ALS Code). Two quality control commercial
standards were inserted by the author into the sample stream and ALS also utilized QA/QC
standards as part of the normal laboratory procedure. The author’s sample descriptions and
summary analytical results are presented in Table 12 and a complete tabulation of
analytical values for these samples is presented in Appendix III. Figure 15 presents sample
locations and Figures 16 and 17 show field conditions at two sample sites.
The author did not sample all mineralized zones on the property due to time constraints and
accessibility issues, but feels that the sample suite collected adequately provides a check on
the representative style and nature of the gold and silver mineralization described to date on
the property.
Las Lajitas Property Technical Report October 2012 Table 12: Mercator Check Sample Results - La Lajita
Sample Number
Description
Grab sample from prospector ore pile at lower A zone
workings
1.5 m chip samples from red hematite fault contact across
exposed maroon qtz breccia zone
Grab sample from prospector ore pile at upper A zone
workings
chip sample of old workings near upper fault area (approx
1.7m)
Au g/t
Ag g/t
Zone
10001
75.83
485.09
A
10002
12.12
108.54
A
10003
33.91
177.91
A
10004
6.89
64.5
A
10005P
0.72
<3.00
10006
8.7
123.35
A
sample 1 continuous chip sample across maroon qtz breccia
zone in lower A zone area in old workings (approx 0.75m)
10007
26.61
203.19
A
sample 2 continuous chip sample across maroon qtz breccia
zone in lower A zone area in old workings (approx 0.75m)
10008P
< 0.03
<3.00
10009
22.9
79.67
B
10010
13.45
65.6
B
Standard CDN-BL-09
continuous chip sample of old B zone workings, continues
from sample 1 below for 0.95m
continuous chip sample of old B zone workings, from upper
fault contact for 0.85m
10011
29.12
112.56
B
Grab sample from prospector ore pile at B zone workings
Standard CDN-GP-P7E
468000
468500
469000
!
(
Check sample location
2562000
2562000
¯
467000
Approximate faults
Alteration limits
Breccia zones
Colluvium, alluvium
Intrusive andesite
Quartz porphry
Las Lajitas Tuff
!
(
2561500
2561500
10009
10010
Undivided volcanics
B Zone
Oceanus Claims
40
C Zone
2561000
2561000
10001
10003
!
(
!
(!
(
10002
10006
!
(
2560500
A Zone
Date: Oct. 2012
Projection:
WGS84 UTM 13N
Figure 15
Mercator check sample
locations
Scale: 1 : 2 500
467000
467500
468000
468500
0
30
60
120
Meters
41
Las Lajitas Property Technical Report Figure 16: A Zone ‐ Maroon Hematitic Breccia Sample Site Figure 17: B Zone ‐ Production Pile Sample Site 65 Queen St. • Dartmouth, NS B2Y 1G4 • Ph.: (902) 463‐1440 • Fax: (902) 463‐1419 E‐mail: [email protected] • Web: www.mercatorgeo.com October 2012 42
Las Lajitas Property Technical Report October 2012 12.0 Adjacent Properties Two adjacent properties, as defined under NI 43-101, occur in close proximity to the La
Lajita property. GoGold Resources Inc. (GoGold) holds a large land position adjacent to
Oceanus and is actively drilling on the Chispa De Oro property that is located within 12km.
In addition, a private Mexican exploration company is mining the main Lluvia de Oro vein
located within 10km of the La Lajita property (Figure 18).
12.1GoGoldResourcesInc.‐SanDiegoProject
GoGold has a large land package known as the San Diego Project, which contains
epithermal gold/silver mineralization that occurs over an area of more than 35 kilometres
(Figure 16). Gold and silver mineralization is exposed at surface and on hillsides where
numerous small hand dug mines occur on the property. GoGold has reported (eg. Press
release Number #22-1012, dated Oct 4, 2012) that quartz veins, breccias and stockwork
zones are exposed in several areas of the property. One area of current exploration is
known as the Chispa De Oro property, which is located approximately 12km from the La
Lajita property. Mapping, sampling and drilling results reported by GoGold for this area
indicates that mineralization and alteration at Chispa De Oro is related to a high
sulphidation system, based on rock mineralogy and field observations.
GoGold is currently drilling the area known as Chispa South and this work is focused on a
network of high sulphidation epithermal breccia zones within a large 2.5km x 750m
oxidized alteration zone that is reported to host disseminated gold and silver mineralization.
In an October 4, 2012 press release GoGold reported new drill results which include Hole
GGS-035 which returned 70 m grading 0.28 g/t Au, 96.3 g/t Ag, 3.37% Cu. Other
significant results are reported below in Table 12.
Table 12: *Significant Drill Hole Results From Chispa South Prospect
Drill Hole
From (m) To (m) **Interval (m)
Copper (%)
Au (g/t)
Ag (g/t)
GGS-18
3.05
77.5
74.45
0.24
76.36
GGS-18
59.6
113.5
53.9
1.25
GGS-19
36.4
131
94
0.04
54
GGS-19
26.4
92
65.6
0.45
GGS-20
1
51
50
0.35
161
GGS-20
40
54
14
1.07
GGS-32
4.8
129
124
0.34
0.1
47.3
GGS-33
78
170
92
0.55
0.1
32.8
*Data in this table is taken from GoGold Press release Number #22-1012, dated Oct 4, 2012. The author has
not verified this information and mineralization on these properties is not indicative of mineralization on the
La Lajita property that is the subject of this report.
**True widths have not been determined as orientation of mineralization is not understood.
A second area, known as Breccia Hill, is located near the town of Pueblo Nuevo, 25 km
from the La Lajita property. Based on results of surface and underground sampling results
from this area, it is thought to contain multiple geological exploration targets with open pit
mineralization potential (GoGold website, 2012).
¯
Pueblo Nuevo
Breccia Hill
Property
Chispa de Oro
Property
IIuvia de Oro
Property
Oceanus Claims
GoGold Claims
Other Claims
Date: Oct. 2012
Figure 18
Projection:
Adjacent property locations
WGS84 UTM 13N
Scale: 1 : 200 000
0
2,450
4,900
9,800
Meters
44
Las Lajitas Property Technical Report October 2012 The Company reported that it has taken a total of 918 samples within the Breccia Hill open
pit target area and the arithmetic average assay of all 918 samples is 1.23 g/t gold and 13.15
g/t silver (GoGold website, 2012).
The author visited GoGold’s San Diego property in 2011 and completed independent
sampling of certain mineralized exposures at that time. However, the author cannot
specifically verify the information reported by GoGold on their website or in the press
releases referenced above. Additionally, the mineralization and information reported by
GoGold is not necessarily indicative of the style and quantity of mineralization that occurs
on the La Lajita property held by Oceanus.
12.2 Lluvia De Oro Property
The Lluvia De Oro property sits immediately adjacent to the south west boundary of the
Oceanus property (Figure 18). The deposit is comprised of the main Lluvia de Oro vein
system that strikes at 1550 and dips at approximately 550 to the west. The vein occurs in a
fault zone cutting andesites, agglomerate and tuffs and is defined over a length of
approximately 5km. It is reported to average about 6m in thickness.
The property owners have reported a non NI43-101 compliant “reserve estimate” for the
property and details of this are presented below in Table 13.
Table 13: *Lluvia De Oro Historic Reserves
Category
Tonnes
Measured
283,731
Indicated
420,811
Inferred
24,340
Au g/t
3.29
3.12
0.26
* Information summarized from Minera Lince and has not been validated by the author
The author cautions that the term “reserve estimate” does not meet NI43-101 reporting
standards. This estimate is not NI43-101 compliant and a qualified person has not done
sufficient work to classify this historical estimate as a current mineral resource or mineral
reserve. Oceanus is not treating this as a current mineral resource or mineral reserve as
defined in sections 1.2 and 1.3 of NI43-101 and this historical estimate should not be relied
upon. The author has been unable to verify the estimate and this information is not
necessarily indicative of the mineralization on the La Lajita property that is the subject of
this report.
Las Lajitas Property Technical Report October 2012 13.0 Mineral Processing and Metallurgical Testing No mineral processing or metallurgical testing has been completed by Oceanus with respect
to the La Lajita property.
However, Northair completed limited sample metallurgical test work which included
cyanide leach tests and screen metallics analysis. Details of this work are excerpted from
Robertson, 2004. While not specific to work completed by Oceanus the author has included
this information for completeness.
Northair collected a total of 18 samples and had them analyzed to determine gold and silver
recoverability by cyanide leach tests. The results of this work showed recoveries that
ranged from 96% to 100% for gold and ranged 35% to 87.9% for silver. The procedures
used simulate an actual vat leach style recovery plant and are summarized below (Robinson
2004).
Table 14: *Summary of Cyanide Leach Tests (Northair 2004)
SAMPLE
Leachate
Au
ppm
19
2.33
7.76
11.05
1.35
13.1
7.13
9.75
7.37
2.48
12.7
9.17
6.11
14.95
5.32
6.72
4.05
8.28
Leachate
Ag
ppm
26.35
7.14
23.91
62.75
6.54
9.46
14.34
66.27
79.63
19.04
72.02
29.2
23.43
58.15
30.17
12.78
15.64
47.2
Tails
Au
Ppm
0.24
<0.05
0.17
0.31
<0.05
0.2
0.13
0.25
0.06
0.06
0.35
0.28
0.2
0.47
0.2
0.13
0.07
0.26
Tails
Ag
ppm
49
6
24
38
6
27
23
77
66
51
61
26
24
8
27
18
16
21
Recovery Recovery
Au vs
Ag vs
Tails
Tails
LA-219
98.8
35.0
LA-220
100.0
54.3
LA-225
97.9
49.9
LA-228
97.3
62.3
LA-236
100.0
52.2
LA-238
98.5
25.9
LA-241
98.2
38.4
LA-245
97.5
46.3
LA-248
99.2
54.7
LA-254
97.6
27.2
LA-258
97.3
54.1
LA-262
97.0
52.9
LA-264
96.8
49.4
LA-269
97.0
87.9
LA-284
96.4
52.8
LA-301
98.1
41.5
LA-305
98.3
49.4
LA-306
97.0
69.2
Average
97.9
50.2
In addition to the work outlined above Northair analyzed three samples by metallic screen
analysis. Results revealed that the majority of the gold in mineralized rock from La Lajita
is in the minus 100 micron fraction. The results outlined in Table 15 show that there is no
nugget effect associated with the visible gold on the property and that conventional Fire
Assay methods will provided accurate gold values.
Las Lajitas Property Technical Report October 2012 Table 15: *Summary of Metallic Screen Analysis ALS Chemex (Northair 2004)
AuAuAuAuAuAuAu-SCR21
SCR21
SCR21
SCR21
SCR21
SCR21
GRA21
Au Total
WT. +
WT. (+)(-)
Au (+)
Au (-)
Au (+)
Frac
Frac
SAMPLE
Combined
Fraction
Fraction
mg
Entire
Entire
Au
ppm
ppm
ppm
mg
g
g
ppm
228
12.55
15.25
12.4
0.691
45.36
802
12.45
245
12.25
11.1
12.25
0.014
1.26
191
11.9
269
19.75
22.7
19.55
0.386
17.03
269
19.85
AuGRA21d
Au
ppm
12.3
12.6
19.3
The author has not verified these sample results but feels the assay values returned
from these samples is consistent with the style and nature of mineralization observed
by the author during the site visit.
Las Lajitas Property Technical Report October 2012 14.0 Mineral Resources and Mineral Reserve Estimates There are no mineral resources or reserves defined on the property to date and Oceanus has
not carried out any mineral resource or reserve programs with respect to La Lajita property.
Las Lajitas Property Technical Report 15.0 Other Relevant Data and Information There is no additional information or explanation necessary for this report.
65 Queen St. • Dartmouth, NS B2Y 1G4 • Ph.: (902) 463‐1440 • Fax: (902) 463‐1419 E‐mail: [email protected] • Web: www.mercatorgeo.com October 2012 49
Las Lajitas Property Technical Report October 2012 16.0 Interpretation and Conclusions On October 24, 2012 Oceanus announced the Company signed a binding letter of intent
The La Lajita property and its associated mineralization exemplify genetic association with
a low sulfidation epithermal Au-Ag system. This type of deposit is one of the world’s
major sources of gold and silver and the largest source in Mexico. To date, 7 zones of
mineralization have been outlined on the property and discussed in this report. These are
currently identified as Zones A to G. Small scale artisanal mining has taken place on the
property over the last 50 years by Gambusinos. This resulted in numerous small, nearsurface tunnels being driven along high grade gold and silver bearing quartz veins, vein
stockwork zones and irregular breccia bodies. However, results of this historic work have
not been recorded.
The most significant documented historical exploration on the property was completed by
Minera Fuerte Mayo in 1999 and Northair in 2004. Minera Fuerte Mayo drilled 13 HQ
holes totalling approximately 944m and Northair completed a total of 20 reverse
circulation drill holes for a total of 1832m. These holes tested mineralization at Zones
A, B, C, D, and E. In addition, they completed geological mapping, soil and stream
sediment sampling, rock sampling, underground sampling and trenching.
Gold and silver mineralization at the La Lajita property occurs within 7 distinct
alteration zones and mineralization generally occurs as veins, stockwork and breccia zones
along and adjacent to fault zones. Visible gold mineralization was noted by the author
host rocks at both the A and B zones. Underground sampling reported by Northair at the A
and B Zones included 4.5m grading 19.35g/t Au and 100g/t Ag, 5.49m grading 7.22g/t Au
and 31g/t Ag, and 3m grading 10.55g/t Au and 36.6g/t Ag. Continuous surface trench
sampling returned 10m grading 9.0g/t Au and 67.9g/t Ag, 20m grading 2.8g/t Au and
23.1g/t Ag and 12m grading 18.86g/t Au and 13.2g/t Ag.
The author is not certain about relationship between sample length and true width, nor the
orientation of mineralization to drill hole intercepts. However, drilling by Northair
indicates that individual gold and silver mineralized zones can exceed 100 meters in strike
length and have true widths ranging from 1.5m to greater than 15m. Significant drill results
include A Zone hole TRC-04-06 that returned 8.19g/t Au and 46.2g/t Ag over 10.7m and B
Zone hole TRC-04-13 that returned 3.16g/t Au and 16.5g/t Ag over 10.7m. Similar
dimensions were confirmed by the author in field observations at the A and B Zones during
the 2012 site visit.
Las Lajitas Property Technical Report October 2012 Results of verification sampling and site geological observations by the author have
confirmed that alteration, gold and silver mineralization present on the property is
consistent with presence of a low sulfidation epithermal deposit type. Verification
sampling by the author at the A Zone chip returned grades of 26.61g/t Au and 203.19g/t Ag
over 0.75m and at the B Zone returned grades of 20.84g/t Au and 87.77g/t Ag over a 1.8m.
These sample intervals are considered comparable to results reported by previous explorers.
The author did not sample all mineralized zones or the full width of these zones, due to
time constraints and accessibility issues, but feels that samples collected are adequate and
representative of the style and nature of the gold and silver mineralization represented on
the property.
Limited exploration work has been completed by Oceanus on the La Lajita property. To
date, this has included initial compilation of past work results. One significant result of this
work has been recognition of spatial correlation of historically defined mineralized and
altered zones along two trends. The first consists of an upper trend of mineralization and
alteration defined by correlation of the F Zone, La Bajada, E Zone, A Zone and A Zone
southern extension, These mineralized and altered areas all occur near the same
topographic level and collectively define the presence of gold and silver mineralization
within hematitic, quartz breccias over a surface trend length of approximately 1.5 km. The
second trend reflects correlation of the B Zone, C Zone and D Zone mineralization and
alteration, all of which occur at a common elevation that is slightly below that of the upper
zone described above. This lower mineralized trend is currently defined at surface over a
length of at least 1 km. While the relationship between these zones has not been
established they appear to share structural similarities along a northwest trending lineation.
Future exploration by Oceanus should test these trends for continuity of gold and silver
mineralization both along strike and down dip.
Collectively historic sampling, drilling and underground mining and sampling have defined
the mineralized breccia zones in 3 dimensions at several locations and along strike. The
work completed by Northair and confirmed by the author has defined strong gold and silver
mineralization over significant widths. A preliminary review of Northair data by Oceanus
and the author suggests that wider widths of lower gold and silver mineralization were not
considered significant by Northair but should be the focus of ongoing exploration by
Oceanus. Reweighting of these sample intervals from drilling, trenching and underground
sampling over wider widths could help to better understand the current economics of wider
gold and silver mineralized zones and also direct future exploration efforts by Oceanus.
The author is not aware of any risks or uncertainties that could reasonably be expected
to affect the reliability or confidence in the exploration information presented in this
report. The author therefore sees no risks or uncertainties to the project's potential
economic viability or continued viability.
Las Lajitas Property Technical Report October 2012 17.0 Recommendations Based on the findings of this report, the following recommendations are presented for
ongoing exploration of the property.
17.1Phase1Recommendations
1. Complete detailed mapping and sampling of the La Lajita property in the areas of
known mineralized zones ( A-G Zones)
2. Complete studies to better assess the potential spatial correlation along two possible
mineralization trends identified by Oceanus during the initial data review process.
3. Complete review and reweighting of sample intervals from Northair drilling, trench
and underground sampling to define wider zone of gold and silver mineralization.
4. Complete reconnaissance or property scale geological mapping and sampling to
identify new zones or trends of mineralization and alteration on the property.
5. Complete a satellite image study to define structures, alteration and mineralization
that may be indicative of new target zones with potential to host precious and base
metal mineralization.
Based on the recommendations outlined above the following Phase 1 budget is proposed.
Table 16: Phase 1 Estimated Budget
Task
Personnel (incl. Geologists)
Travel/Transportation
Labour/support
Camp support
Laboratory analysis of geological samples
Total Phase 1
Estimated cost
$300,000
$75,000
$35,000
$30,000
$60,000
$500,000.00
17.2Phase2Recommendations
The Phase 2 work programs presented below are in part contingent on positive results of
the Phase 1 exploration. Geological mapping of historic mineral occurrences and identified
structures is an important part of the on-going property evaluation. Diamond drilling listed
below is contingent on the identification of suitable targets from the Phase 1 evaluation
process.
1. Complete diamond drilling of targets on the La Lajita mineralized zones to better
define their depth and strike extensions and to assess distribution of contained gold
and silver mineralization.
2. Complete initial diamond drilling tests on highest priority new targets identified
from Phase 1 exploration.
Las Lajitas Property Technical Report Table 17: Phase 2 Estimated Budget
Task
Personnel (incl. Geologists)
Travel/Transportation
Camp food
Camp communication
Geological samples
Diamond drilling (3000 metres)
Total Phase 1
65 Queen St. • Dartmouth, NS B2Y 1G4 • Ph.: (902) 463‐1440 • Fax: (902) 463‐1419 E‐mail: [email protected] • Web: www.mercatorgeo.com October 2012 Estimated cost
$300,000
$100,000
$20,000
$10,000
$70,000
$500,000
$1,000,000.00
53
Las Lajitas Property Technical Report 18.0 Date and Signatures The effective date of this report is October 26, 2012
“Signed and Sealed by”
________________________
Peter C. Webster, P.Geo.
President
Date: October 26, 2012
65 Queen St. • Dartmouth, NS B2Y 1G4 • Ph.: (902) 463‐1440 • Fax: (902) 463‐1419 E‐mail: [email protected] • Web: www.mercatorgeo.com October 2012 54
Las Lajitas Property Technical Report October 2012 19.0 References Cited and Selected References Albinson T., 1984, Visita preliminar al prospecto Cerro Agujerado, Pueblo Nuevo Durango
México, reporte Privado
Albinson, T, Norman, D.I., Cole, D., Chomiak, B, 2001, Controls on Formation of LowSulphidation Epithermal Deposits in Mexico: Constraints from Fluid Inclusion and Stable
Isotope Data, In: Albinson, T. and Nelson, C.E., eds., Society of Economic Geology
Special Publication 8, p. 1-32.
Bryan, S.E. 2007. Silicic Large Igneous Provinces. Episodes, vol 30; p. 20-31.
Davila R. T., 1992, evaluación del potencial minero del proyecto Cerro Agujerado en
Pueblo Nuevo Durango México, reporte privado
Corbett, G.J., 2002, Epithermal gold for explorations, AIG Journal – Applied geoscientific
practice and research in Australia Paper 2002-01, February 2002 26p.
Corbett, G.J., and Leach, T.M., 1998, Southwest Pacific rim gold-copper systems:
Structure, alteration and mineralisation: Economic Geology, Special Publication 6, 238 p.,
Society of Economic
Consejo de Recursos Minerales, 1993, Monografias Geologico Mineras
Ferrari, L., Pasquarè, G., Venegas-Salgado, S., and Romero-Rios, F., 1999, Geology of the
western Mexican Volcanic Belt and adjacent Sierra Madre Occidental and Jalisco block, in
Delgado-Granados, H., Aguirre-Díaz, G., and Stock, J. M., eds., Cenozoic Tectonics and
Volcanism of Mexico: Boulder, Colorado, Geological Society of America Special Paper
334.
Ferrari, l., Valencia-Moreno, M. and Bryan, S. 2007. Magmatism and tectonics of the
Sierra Madre Occidental and its relation with the evolution of the western margin of North
America. In Geology of Mexico; ed: S.A. Alaniz-Alvarez and Angel F. Nieto-Samaniego.
Geological Society of America Special Paper 422; p. 1-40.
Manriquez R., 2005, Characteristics of the major epithermal gold deposits in the northern
Sierra Madre Occidental, Mexico, Thesis Presented to the Faculty of the Graduate School
of The University of Texas at El Paso in Partial Fulfillment of the Requirements for the
Degree of Master of Science Department of Geological Sciences The University Of Texas
at El Paso.
Maynard Stephen R., 2004, El Tesoro Project, January to June 2004 Exploration Program
Summary Report, Prepared for International Northair Mines Ltd. July 2004. This is an
internal company report on 2004 exploration program.
Las Lajitas Property Technical Report October 2012 Robinson, James R., 2004 Report on the El Tesoro Project, State of Durango, Mexico for
International Northair Mines Ltd. August 2004. This is an internal company report on 2004
exploration program.
Sedlock, R. L., Ortega-Gutierrez, F., and Speed, R. C., 1993, Tectonostratigraphic Terranes
and Tectonic Evolution of Mexico, Geological Society of America Special Paper 278, 142p
Sivertz G., 1995, Castle Rock Exploration Corp, 1995, Phase I exploration and Drilling
program Cerro Agujerado Project, Pueblo Nuevo Durango Mexico
White, N C and Hedenquist,J W, 1994, Epithermal environments and styles of
mineralization; variations and their causes, and guidelines for exploration, In: Epithermal
gold mineralization of the Circum-Pacific; geology, geochemistry, origin and exploration;
II.Siddeley-G (editor), Journal of Geochemical Exploration. 36; 1-3, Pages 445-474. 1990.
Wisser, E., 1966, The epithermal precious-metal province of northwest Mexico: Nevada
Bureau of Mines Geological Report, no. 13, p. 63-92.
Websites Used
Agnico Eagle Inc. http://www.agnico-eagle.com
Argonaut Gold Inc. http://www.argonautgoldinc.com
Coeur d’Alene Mines Corporation http://www.coeur.com
First Majestic Silver Corp http://www.firstmajestic.com
Gammon Gold Inc. http://www.gammongold.com
GoGold Resources Inc. http://www.gogoldresources.com
Primero Mining Corp http://www.primeromining.com
Las Lajitas Property Technical Report Appendix I Statements of Qualifications 65 Queen St. • Dartmouth, NS B2Y 1G4 • Ph.: (902) 463‐1440 • Fax: (902) 463‐1419 E‐mail: [email protected] • Web: www.mercatorgeo.com October 2012 57
Las Lajitas Property Technical Report October 2012 CERTIFICATE of AUTHOR
I, Peter C. Webster, P. Geo. do hereby certify that:
1.
I currently reside in Dartmouth, Nova Scotia and I am currently employed as
President and Senior Manager with:
65 Queen Street
Dartmouth, Nova Scotia, Canada
B2Y 1G4
2.
I graduated with a Bachelors Degree in Geology from Dalhousie University
in 1981. In addition, I obtained a Certificate in Environmental Management
(C.E.M.) from the Technical University of Nova Scotia in 1996.
3.
I am a member in good standing of the Association of Professional
Geoscientists of Nova Scotia, registration number 047. I am a member in
good standing of the Association of Professional Engineers and
Geoscientists of Newfoundland and Labrador, member number 03337.
4.
I have worked as a geologist in Canada and internationally for over 27 years
since my graduation from university in 1981. I have a wide variety of
commodity experience including, gold, VMS, base metals, nickel, and
industrial minerals. I have completed numerous NI43-101 compliant
Technical Reports and Resource Estimates.
5.
I have relevant work experience and authored reports on similar epithermal
gold deposits. I have worked in Mexico on two occasions for Gammon Lake
Resources and evaluated similar style gold and silver mineralization and
alteration.
6.
I have no prior involvement with the La Lajita Property that is the subject of
this report.
7.
I have read the definition of “qualified person” set out in National
Instrument 43-101 (“NI 43-101”) and certify that by reason of my education,
affiliation with a professional association (as defined in NI 43-101) and past
relevant work experience, I fulfill the requirements to be a “qualified
person” for the purposes of NI 43-101.
Las Lajitas Property Technical Report 8.
October 2012 I am the qualified person responsible all items in this Technical Report:
Technical Report On The
La Lajita Property,
Durango Mexico
For
Centred at
468,000 E; 2,561,000 N
Zone 13 N
WGS 84
Effective Date: October 26, 2012
9.
I visited the La Lajita property on August 21st and 22nd 2012 at which time I
visited the A Zone and B Zone and viewed outcrop mineralization and
alteration that is the subject of this report.
10.
To the best of my knowledge, information and belief, the Technical Report
contains all scientific and technical information that is required to be
disclosed to make those sections of the technical report not misleading.
11.
I am independent of Oceanus Resources Corporation applying all of the tests in
Section 1.5 of National Instrument 43-101.
12.
I am independent of the Vendors including Lunar Gold Holdings Inc., LGHI
Holdings Inc. & Minera Pueblo de ORO SA DE CV and the La Lajita Property
discussed in this report.
13.
I have read National Instrument 43-101 and Form 43-101F1, and believe
that this Technical Report has been prepared in compliance with that
instrument and form.
Dated this 26th Day of Oct, 2012
“Signed and Sealed by”
____________________________
Peter C. Webster, P. Geo.
President
Las Lajitas Property Technical Report Appendix II Author Sample Data 65 Queen St. • Dartmouth, NS B2Y 1G4 • Ph.: (902) 463‐1440 • Fax: (902) 463‐1419 E‐mail: [email protected] • Web: www.mercatorgeo.com October 2012 Report: Z12-190 (i) rev 1
Id. Lote
Cliente
Proyecto
Nombre Lote
Fecha Recep.
Tipo Muestra(s)
Solicitante
Fecha Reporte
Analyte
Method Type
Units
Limit
10001
10002
10003
10004
10005P
10006
10007
10008P
10009
10010
10011
Activation Laboratorios Ltda.
Z12-190 (i)
Servicios y Proyectos Mineros de Mexico S.A.
La Lajita
25-08-2012
Roca
Peter Webster
27-08-2012
Ag
FA-GRAV
g/Mt
3.00
Au
FA-GRAV
g/Mt
0.03
485.09
108.54
177.91
64.5
<3.00
123.35
203.19
<3.00
79.67
65.6
112.56
75.83
12.12
33.91
6.89
0.72
8.7
26.61
< 0.03
22.9
13.45
29.12
Page 1 of 2
Report: Z12-190 (i) rev 1
Id. Lote
Cliente
Proyecto
Nombre Lote
Fecha Recep.
Tipo Muestra(s)
Solicitante
Fecha Reporte
Analyte
Method Type
Units
Limit
CDN-GS-7A meas
CDN-GS-7A cert
CDN-ME-1206 mea
CDN-ME-1206 cert
10004 original
10004 pulp duplicat
10010 original
10010 pulp duplicat
bk
Activation Laboratorios Ltda.
Z12-190 (i)
Servicios y Proyectos Mineros de Mexico S.A.
La Lajita
25-08-2012
Roca
Peter Webster
27-08-2012
Ag
FA-GRAV
g/Mt
3.00
Au
FA-GRAV
g/Mt
0.03
<3.00
7.61
7.2
2.74
2.61
6.89
7.15
13.45
10.3
< 0.03
266.62
274
64.5
61.06
65.6
62.03
< 3.00
Page 2 of 2

TECHNICAL REPORT ON THE LA LAJITA PROPERTY, DURANGO

Transcription

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