August 22, 2008 - Prospero Silver Corp.

Transcription

SAN LUIS DEL CORDERO PROJECT
TECHNICAL REPORT ON THE SAN LUIS DEL CORDERO PROJECT
DURANGO STATE. MEXICO
LOCATION
CENTERED NEAR NAD27 MEXICO UTM ZONE 13
567524E
2812900N
Lat: 25°25 ‘5 8”N Long: 104° 1 7’20”W
PREPARED FOR
PROSPERO SILVER CORP.
300 ROYAL CENTRE-1055 WEST GEORGIA STREET
VANCOUVER. B.C. V6E 3R3
PREPARED BY
PETER A. CHRISTOPHER P.ENG. PHD
PAC GEOLOGICAL CONSULTING INC.
3707 WEST 34 AVENUE
VANCOUVER B C V6N 2K9
AUGUST 22, 2008
PAC GEOLOGICAL CONSULTING INC
AUGUST 2008
3.0 SUMMARY................................................................................................................................. 5
3.1 Property Description ................................................................................................................ 5
3.2 Property Location, Infrastructure and Access.......................................................................... 5
3.3 Property Ownership & Terms of Agreement........................................................................... 5
3.4 Property Geology and Mineralization...................................................................................... 6
TABLE 3.1. CHECK SAMPLES SAN LUIS DEL CORDERO PROJECT, DURANGO,
MEXICO (080502). ................................................................................................................... 6
3.5 Deposit Type & Exploration Concept...................................................................................... 6
3.6 Status of Exploration Development and Operations................................................................ 7
3.7 Conclusions and Recommendations ........................................................................................ 7
3.6 Opinion of Merit ...................................................................................................................... 7
4.0 INTRODUCTION AND TERMS OF REFERENCE ................................................................. 7
4.1 Terms of Reference and Purpose ............................................................................................. 7
4.2 Source of Information and Data............................................................................................... 7
4.3 Field Involvement of the Qualified Person (Author)............................................................... 8
5.0 Reliance on Other Professionals .............................................................................................. 8
6.0 PROPERTY DESCRIPTION AND LOCATION (Figures 6.1, 6.2 & 6.3) ................................ 8
6.1 Property Area (Figures 6.1, 6.2, & 6.3; Table 6.1) .................................................................. 8
6.2 Property Location (Figures 6.1, 6.2 & 6.3).............................................................................. 9
6.3 Description of Claims (Fig. 6.3 & Table 6.1) .......................................................................... 9
6.4 Claim Title and Agreements (Tables 6.2 & 6.3)...................................................................... 9
6.5 Legal Survey ............................................................................................................................ 9
6.7 Environmental Liabilities......................................................................................................... 9
6.8 Working on the Property.......................................................................................................... 9
Table 6.1 Pertinent Claim (Mining Concession) Data for San Luis Project............................ 10
Table 6.2 Prospero Shares Issueable to Altiplano Under Section Schedule “C” of Option
Agreement................................................................................................................................ 10
Table 6.3 Summary of Cash Payments and Work Commitments to Retain SLDC Option..... 11
Figure 6.1 Location Plan for San Luis Del Cordero Project, Durango State, Mexico............. 12
Figure 6.2 General Locations of SLDC Project, Mexico......................................................... 13
Figure 6.3 Location of SLDC Project Mining Concessions Durango State, Mexico. ............. 14
7.0 ACCESSIBILITY, LOCAL RESOURCES, CLIMATE, AND PHYSIOGRAPHY ................ 15
7.1 Access to the Property and Proximity to Population Center(s) ............................................. 15
7.2 Topography, Elevation and Vegetation ................................................................................. 15
7.3 Relevant Climate and Length of Operating Season............................................................... 15
7.4 Availability of Surface Rights, Power, Water and Mining Personnel ................................... 15
7.5 Potential Areas for Tailings Disposal, Heap Leach Pads and Plant Sites.............................. 16
8.0 HISTORY .................................................................................................................................. 16
8.1 Previous Ownership ............................................................................................................... 16
8.2 Previous Exploration.............................................................................................................. 16
8.3 Historic Production and Resource Estimates......................................................................... 17
Figure 8.1 Geology of the SLDC showing locations of veins and Apex and HC drill holes. A
number of adits and shafts were used to exploit the Santa Rosa and India Bonita structures
(Prepared by Prospero, 2008). ................................................................................................. 18
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2
Figure 8.2. SW-NE Section in the Plane of Apex Drill Holes SL-0-1 & 2. ........................... 19
Figure 8.3. NE-SW Section in the Plane of Apex Drill Holes SL-0-3. ................................. 20
Figure 8.4 N-Section in the in the Plane of HC Drill Hole HCSR-2 Testing Santa Rosa
Structure (Prepared by Prospero, 2008)................................................................................... 21
Figure 8.5 N-S Section in Plane of HC Drill Holes HCIB-1 and HCIB-2 Testing India Bonita
Vein System. ............................................................................................................................ 22
Figure 8.6 NW-SE Section Showing Santa Rosa Workings and Altiplano Sampling Above
Water Table.............................................................................................................................. 23
9.0 GEOLOGICAL SETTING ........................................................................................................ 23
9.1 Regional Geological Setting .................................................................................................. 23
9.2 Property Geology (Figures 9.1 & 9.2) ................................................................................... 24
Figure 9.1 Generalized Geology of SLDC, Durango State, Mexico. ...................................... 25
Figure 9.2 Stratigraphic Section for the SLDC Project Area................................................... 26
10.0 DEPOSIT TYPES (Figure 10.1).............................................................................................. 27
10.1 Mineral Deposit Type/Model for the Property .................................................................... 27
10.2 Geological Concepts Used For Exploration of the Property ............................................... 27
11.0 MINERALIZATION (Figures 11.1) ....................................................................................... 27
11.1 Mineralized Zones Encountered .......................................................................................... 27
Figure 10.1 Section Showing Vein, Replacement and Skarn Type Targets for Ag-Cu-Zn-Pb
Mineralization on the SLDC.................................................................................................... 28
Figure 11.1 Figure Showing Silicification or Jasperoid Mineralization Trending WNW in
Santa Rosa Mine Area. ............................................................................................................ 29
12.0 EXPLORATION BY THE ISSUER ....................................................................................... 30
12.1 Geochemical Sampling ........................................................................................................ 30
Table 12.1 Further Analysis by Prospero of ½ Core from Historic Hole HCSR2. ................. 31
12.2 Induced Polarization Geophysical Program (Figure 12.1, 12.2, 12.3 & 21.1) .................... 32
12.2 Discussion of Induced Polarization Results..................................................................... 32
Figure 12.1 Sampling of India Bonita Mine by Prospero and Altiplano (Prospero, 2008). .... 34
Figure 12.2 Location Plan for Surveyed IP Grid. .................................................................... 35
Figure 12.3 3D Distribution of Resistivity (from Rastad & Dobrescu, 2008)......................... 36
Figure 12.4 3D Distribution of Chargeability (from Rastad & Dobrescu, 2008). ................... 37
13.0 DRILLING............................................................................................................................... 38
14.0 SAMPLING METHOD AND APPROACH ........................................................................... 38
14.1 Sampling by Prospero .......................................................................................................... 38
14.2 Prospero Rock Sampling Procedures............................................................................... 38
Table 14.2 Supplier for Analytical Standards.......................................................................... 41
15.0 SAMPLE PREPARATION, ANALYSES AND SECURITY ................................................ 42
15.1 Sampling Personnel and Security ........................................................................................ 42
15.2 Sample Preparation and Analytical Procedures................................................................... 42
16.0 DATA VERIFICATION ......................................................................................................... 42
16.1 Quality Control and Data Verification................................................................................. 42
16.2 Verification of Sampling and Analytical Data by Author (Table 15.1) .............................. 43
Table 16.1 Writer’s Check Samples from the San Luis Property............................................ 43
17.0 ADJACENT PROPERTIES` ................................................................................................... 43
17.1 Relevant Data on Adjacent & Nearby Properties ................................................................ 43
18.0 MINERAL PROCESSING AND METALLURGICAL TESTING........................................ 44
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18.1 Mineral Processing and Metallurgical Testing .................................................................... 44
19.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES................................... 44
19.1 Mineral Resource Estimates ................................................................................................ 44
20.0 OTHER RELEVANT DATA AND INFORMATION ........................................................... 44
21.0 INTERPRETATION AND CONCLUSIONS......................................................................... 44
21.1 Conclusions and Recommendations (Table 21.1) ............................................................... 44
Table 21.1 Proposed Phase 1 Drill Holes. ............................................................................... 46
22.0 WORK RECOMMENDATIONS............................................................................................ 46
22.1 Summary Recommendation Phase One Work Program...................................................... 46
22.2 Recommendation of Phase Two Work Program ................................................................. 46
22.3 Opinion that Property is of Sufficient Merit to Justify Work Recommended ..................... 46
TABLE 22.1 RECOMMENDED WORK PROGRAM AND BUDGET FOR PHASE 1 ON
SAN LUIS PROPERTY, DURANGO STATE, MEXICO. .................................................... 47
TABLE 22.2. WORK PROGRAM AND BUDGET FOR PHASE 2 ON SAN LUIS
PROPERTY, DURANGO STATE, MEXICO (Success Contingent)..................................... 47
23.0 REFERENCES AND SOURCES OF INFORMATION......................................................... 48
24.0 SIGNATURE, STAMP AND DATE ...................................................................................... 50
25.0 CERTIFICATE .................................................................................................................... 51
AUGUST 2008
4
3.0 SUMMARY
3.1 Property Description
Prospero Silver Corp. (“Prospero” or “The Company”) through its Mexican subsidiary
Minera Fumarola, S.A. De C.V. (“Fumarola”) holds the San Luis Del Cordero Project (“SLDC”)
which covers about 2,778 hectares in Durango State, Mexico. On March 25, 2008, Prospero signed
a letter of agreement with Exploraciones Del Altiplano, S.A. Del C.V. (“Altiplano”) and an option
agreement was finalized providing an option for Prospero to earn a 100% interest in Altiplano’s
San Luis del Cordero project.
The SLDC covers a contact zone between granodioritic or dioritic and quartz feldspar
porphyry intrusive rocks and siltstone, limestone and shale. The zone has vein type copper-silverzinc mineralization in the Santa Rosa, India Bonita and Veta NE systems with potential for skarn
and replacement of limestone and limy sediments. Surface exploration work and drilling conducted
by previous operators has concentrated on the Santa Rosa Vein, the India Bonita Vein and Veta
NE target.
The writer was retained by Prospero to examine the setting of the SLCD to qualify for
preparation of an independent technical report on the SLDC in the form required by NI 43-101. A
field examination was conducted on May 2nd, 2008 during which three check samples were
collected (Table 3.1) and historic core stored at the secured core splitting and storage facility in
San Luis Del Cordero was examined. This NI 43-101 technical report was prepared for Prospero
for supporting documentation to be submitted to the TSX Venture Exchange.
3.2 Property Location, Infrastructure and Access
The SLDC Project is located about 150 kilometers NNE of Durango City, Durango State,
Mexico and about 65 kilometres west of Torreon, State of Coahuila, Mexico. The project area can
be reached from Durango City or Torreon via Federal highways 40 (Durango-Torreon) and then
westerly on Highway 34 (also Highway 39 on Durango map) to Nazas and northerly for 23km on
a secondary paved road that passes through the town of San Luis del Cordero, Durango Mexico.
Local mine and ranch roads provide access to the project area with the old Santa Rosa mine
approximately 1km northwest of the village of San Luis del Cordero.
3.3 Property Ownership & Terms of Agreement
The SLDC property, consisting of 6 claims covers about 2,825 ha near San Luis del
Cordero in Durango State, Mexico. The terms of the Option Agreement provide Prospero the
ability to earn a 100% interest in the San Luis del Cordero property. Prospero will pay US$25,000
and issue 20,000 shares on acceptance for filling of the agreement by the TSX Venture Exchange.
To earn its 100% interest, Prospero has to pay US$450,000 in cash and issue a maximum of
1,980,000 shares and incur US$1,650,000 in property expenditures over a four year period. The
Mexican partner (Altiplano) will receive 2% NSR which can be bought down to 1.5% by paying
US$500,000 within 3 years of the decision to exercise the option.
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3.4 Property Geology and Mineralization
The SLDC area is underlain by a multiphase interbedded siltstone and limetstone of the
Cretaceous Cuesta del Cura, Caracol and La Casito Formations. The sedimentary rocks are as roof
pendants or irregular wedges in a granodioritic intrusive complex and are cut by quartz feldspar
porphyry bodies. Prospero’s mapping has shown that large areas have been skarnfied and that
jasperoid has deposited along structures and replaced limy sedimentary rocks. The writer examined
the Santa Rosa and India Bonita areas of the prospect and collected three samples to verify the
presence of significant mineralization in veins and check results from Prospero’s and Altiplano’s
sampling. A grab sample from siliceous material in a small dump obtained from a shaft in Santa
Rosa structure contained 1.436% Cu and 990 g/t Ag and a 0.2m continuous chip sample from the
Santa Rosa workings, at sample station 20388, contained 1.183% Cu and 251 g/t Ag and verifies
an Altiplano sample containing 0.96% Cu and 239 g/t Ag over 0.4m. A chip sample from the India
Bonita structure contained 104 g/t Ag and 1.06% Pb over a 2.0m width. The writer’s samples
verify the presence of significant copper and silver mineralization in the Santa Rosa and India
Bonita vein zones.
The Santa Rosa and India Bonita vein structures has been traced for over a kilometer with
trends varying up to 30° from the main east-west trend. Multiple veins occur in each structure with
vein varying in width to several meters and silicified structural zone up to 100m wide and veins
dipping southerly 60-80°.
TABLE 3.1. CHECK SAMPLES SAN LUIS DEL CORDERO PROJECT, DURANGO, MEXICO (080502).
Sample #
IB080502-1
SR080502-2
SR080502-3
Location
UTM E/N
(Elevation)
0572907E
2813832N
(1578m)
0571700E
2812854N
(1531m)
portal
0572077E
2812817N
(1519m)
Type/
KG
Width
Pb
%
Cu %
Ag
g/t
COMMENTS
Chip/
1.99
2.0m
1.06
0.214
104
@▲32 LIMY SED; Zn
0.14%
Chip/
0.85
0.2m
0.04
1.183
251
Grab/
0.71
na
0.03
1.436
990
@▲20388 50m into adit;
checks 0.4m @ 239 g/t Ag;
0.96% Cu; 0.02% Pb &
0.19% Zn.
Siliceous rocks; secondary
copper stained in small, 1-2
tonne dump
3.5 Deposit Type & Exploration Concept
The San Luis Project area has a number of old shafts, adits and drifts that exploited
argentiferous tetrahedrite and base metal bearing vein structures. The veins are situated in hornfels,
silicified and skarnified sedimentary rocks that are adjacent to granodiorite or quartz feldspar
porphyry intrusive. A number of silver bearing replacement and skarn bodies occur in similar
settings near the eastern edge of the Sierra Madre. Prospero used geophysical methods to define
conductive areas covered by soil and post-mineral or un-mineralized cover that may conceal
sulphide bearing veins or skarn deposits.
AUGUST 2008
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3.6 Status of Exploration Development and Operations
Exploration by Prospero, costing in excess of Cdn$100,000 has consisted of verification
geological mapping, and 104 rock samples from historical core and India Bonita workings and a
23 line-km 3D induced polarization (“IP”) survey with qualifying work used to evaluate the
mineral potential in covered areas and provide information to assist in defining viable targets for
future drilling. Previous exploration programs by Altiplano, Apex Silver, and Minera Hochschild
Mexico and included drilling of 9 core holes with 3 used to test the India Bonita vein structure, 5
used to test the Santa Rosa and one used to test a NE anomalous area.
3.7 Conclusions and Recommendations
Previous exploration and the sampling and drilling by previous operators have confirmed
the presence of significant grades of silver-copper-zinc mineralization in limy Mesozoic sediments
near their contact with intrusive bodies. The mineralized zones are associated with IP chargeability
and rock geochemical anomalies. The presence of a prospective environment for precious metal
enhanced base metal vein, skarn and replacement mineralization provides justification for a Phase
1 drilling program. The historical drilling programs have also indicated significant silver and base
metal mineralization that requires further drill definition.
A Phase 1 program of further drilling is justification on the basis of Prospero’s qualifying
exploration program consisting of mapping, sampling and geophysical exploration. A
recommended Phase 1, 1,500 meter drill will satisfy the year 1 work and expenditure requirements
with the program estimated to cost US$300,000. A success contingent Phase 2, 3,000 meter drill
program and associated supervision, site preparation and reporting is estimated to cost
US$600,000.
3.6 Opinion of Merit
In the writer’s opinion, the character of the property is of sufficient merit to justify the
recommended Phase 1 program.
4.0 INTRODUCTION AND TERMS OF REFERENCE
4.1 Terms of Reference and Purpose
This Technical Report, requested by Prospero Silver Corp. (“Prospero” or “The
Company”), is to propose further exploration to define mineralization on the SLDC in Durango
State, Mexico. The report has been prepared in compliance with the requirements of National
Instrument 43-101 and Form 43-101F1, and is for supporting documentation to be filed with the
relevant securities commissions and the TSX Venture Exchange.
4.2 Source of Information and Data
The majority of the information for this report comes from reports and documents listed
under the References and Sources of Information section of this report. Data was collected mainly
by geological and geophysical contractors and employees of Prospero, previous operators and
Consejo de Recursos Minerales (CRM) personnel. The writer review of mapping, drill sites and
AUGUST 2008
7
core handling and storage indicated that previous operators used competent personnel for
fieldwork and sampling and HC used certified laboratories for analytical work. The Induced
Polarization geophysical program conducted by SJ Geophysics Ltd. for Prospero is outlined in a
report entitled “Logistical Report for Prospero Silver Corp. Induced Polarization Survey on the
San Luis Del Cordero Project” (Dobrescu and Ko, 2008) and interpreted in a draft report entitled,
“3D Induced Polarization on the San Luis del Cordero Project” (Rastad and Dobrescu, 2008).
The writer personally examined the geological setting of the SLDC area on May 2nd, 2008
and reviewed the geological setting with Prospero’s exploration manager, geological engineer
Martin Soto Moran. The writer examined core at the company’s core splitting and storage facility
in San Luis on May 2nd, 2008. The writer has prepared several NI 43-101 technical reports on
other properties in the Mexican States of Sinaloa, Durango and Zacatecas and participated in tours
of the Tayoltita Mine and Basis Mine that provided the writer insights into geological and
structural controls of mineralization in the region. The writer collected independent check samples
to verify mineralization on the SLDC property. The writer has no previous exploration experience
in the SLDC property area.
4.3 Field Involvement of the Qualified Person (Author)
The author of this report spent May 2nd, 2008 traveling from Mexico City to Torreon and
then to the San Luis Property for a 4 hour property examination with geologist Martin Soto Moran.
The writer collected two chip samples and one dump sample to verify the presence of significant
copper and silver mineralization. The writer examined core at Prospero’s secured core splitting and
storage facility in San Luis Del Cordero. The writer has examined a number of properties in
Durango, Sinaloa and Zacatecas states, Mexico for other TSX and TSX venture companies but has
no previous experience on the SLDC.
5.0 Reliance on Other Professionals
The writer is required by NI 43-101 to include description of the property title and terms of
legal agreements that are presented in the following sections. The writer reviewed property
agreements and title documents provided by Prospero in order to provide summaries of title and
ownership. Property agreements and title documents are legal matters and should be reviewed by
Prospero’s legal counsel. In Mexico, claim locations are established by a registered Mexican
mineral claim surveyor and his plan should be equivalent to a legal survey of the claim area.
However, knowing the exact location of a concession does not guarantee clear title.
6.0 PROPERTY DESCRIPTION AND LOCATION (Figures 6.1, 6.2 & 6.3)
6.1 Property Area (Figures 6.1, 6.2, & 6.3; Table 6.1)
The SLDC, consisting of 6 exploration concessions covering about 2,825 hectares (6,980 acres)
(Table 6.1; Figures 6.1, 6.2 & 6.3) is situated in Durango State and centered near NAD27
MEXICO UTM ZONE 13 coordinates 567524E and 2812900N and geographic coordinates
o
o
25 25’58”N latitude and 104 17’20”W longitude.
AUGUST 2008
8
6.2 Property Location (Figures 6.1, 6.2 & 6.3)
The SLDC Project is located about 150 kilometers NNE of Durango City, Durango State,
Mexico and about 65 kilometres west of Torreon, Coahuila State, Mexico. The project area can be
reached from Durango City or Torreon via Federal highways 40 (Durango-Torreon) and then
westerly on Highway 34 (also Highway 39 on Durango map) to Nazas and northerly for 23km on
a secondary paved road that passes through the town of San Luis del Cordero, Durango Mexico.
Alternately, Highway 45 north from Durango for about 160km to Hildago de San Antonio and east
on Highway 34 to Nazas, avoids the toll road.
6.3 Description of Claims (Fig. 6.3 & Table 6.1)
The SLDC, consisting of 6 claims or mining concessions covers about 2,825 ha in the
Municipality of San Luis del Cordero, State of Durango, Mexico was optioned by Prospero in
2008 (Table 6.1) .
6.4 Claim Title and Agreements (Tables 6.2 & 6.3)
The SLDC property, consisting of 6 claims covers about 2,825 ha in Durango State,
Mexico. Prospero acquired an option to obtain 100% interest in the concessions from Altiplano for
payments totaling US$450,000 and shares of Prospero (Tables 6.2 & 6.3) over four years.
The 2005 Mexican Mining Regulations, effective January 2006, provide for all concessions
to be valid for a period or 50 years. Annual taxes, due in January and June of each year, vary from
about US$0.40 in the first year to US$8.50 per hectare in the sixth year of exploration. Property
holding costs for 2008 are about US$17,000 and will increase to about US$25,000 as titles mature.
6.5 Legal Survey
Mexican mining law requires a mineral claim be established by a registered Mexican
Mineral Claim Surveyor. Prospero compiled a plan of the SLDC property concessions (Figure 6.3)
from the registered surveyor’s plots. Monuments were observed in the field establish the location
of the property as shown on Figure 6.3 claim locations but no attempt was made to evaluate the
legal title to claims shown on Figure 6.3.
6.7 Environmental Liabilities
The writer is not aware of any environmental liabilities related to the San Luis Project area.
The area is used for grazing by local ranchers and care must be taken to insure safety of livestock.
No permits are required for normal surface exploration and drilling.
6.8 Working on the Property
A small shaft and a number of pits and trenches have been constructed along the main
intrusive contact by previous operators. The old workings have been sampled by Altiplano and
three check samples collected by writer to verify the presence of significant silver and copper
mineralization. The location of vein structures, shafts and historical drill holes is shown on Figures
8.1 and 9.1. Figure 8.6 is a section showing underground workings at the Santa Rosa Mine and
Figure 12.1 is a section showing underground workings at the India Bonita Mine.
AUGUST 2008
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Table 6.1 Pertinent Claim (Mining Concession) Data for San Luis Project.
Name
Title Number
Hectares
Issued
Expiry
Tecolotes
Cordero III
Cordero
Cordero III
Cordero II
Cordero IV
Total
194984
223678
222485
221970
218972
228447
25.0000
129.0000
320.0000
129.0000
175.0000
2,047.0000
2,825.0000
30 July 1992
02 Feb. 2055
16 July 2004
22 Apr. 2004
28 Jan. 2003
22 Nov. 2006
29 July 2042
01 Feb. 2055
15 July 2054
21 Apr. 2054
27 Jan. 2053
21 Nov. 2056
Annual Taxes
in Pesos
5,040.00
26,112.66
50,493.26
22,950.87
35,132.80
28,186.00
Table 6.2 Prospero Shares Issuable to Altiplano Under Section Error!
Reference source not found.“C” of Option Agreement.
THE NUMBER OF PROSPERO SHARES REQUIRED TO BE ISSUED SHALL BE
DETERMINED BY THE MARKET PRICE ON THE ISSUE DATE AS FOLLOWS:
ISSUE
DATE*
(# of months
after the date of
the Agreement)
6
12
18
24
30
36
42
48
MARKET PRICE**
< $1.25
$1.25 - $2.499
$2.50 - $7.50
> $7.50
30,000
25,000
20,000
15,000
30,000
25,000
20,000
15,000
50,000
40,000
35,000
25,000
50,000
40,000
35,000
25,000
100,000
80,000
70,000
50,000
100,000
80,000
70,000
50,000
100,000
100,000
100,000
100,000
1,500,000
1,100,000
600,000
450,000
* The column entitled ISSUE DATE in the table above sets out the dates on which
Prospero shall issue shares under the Option, being the end of the six month, twelve month,
eighteen month, twenty-four month, thirty month, thirty-six month periods, forty-two month and
forty-six month periods respectively, after the date of this Agreement.
** The number of Prospero Shares required to be issued under the Option on a given Issue
Date shall be determined by reference to the MARKET PRICE set out in the table above as of the
applicable Issue Date.
AUGUST 2008
10
Table 6.3 Summary of Cash Payments and Work Commitments to Retain
SLDC Option.
Date
US Cash Payment *
Required Expenditure/ Required Work Type
Cumulative Exp. US$
September 1, 2008
$25,000
NA
March 1, 2009
$12,500
NA
September 1, 2009
$12,500
$250,000
March 1, 2009
$12,500
September 1, 2009
$12,500
March 1, 2010
$12,500
September 1, 2010
$12,500
March 1, 2010
$150,000
September 1, 2010
$200,000
1,500 metres
Diamond Drilling
$400,000/$650,000
$400,000/$1,050,000
$600,000/$1,650,000
* A 2% NSR payable to Altiplano on Commercial Production. After exercise of option Prospero
may, within 3 years, purchase 0.5% of the NSR for a payment of US$500,000. Altiplano shall
receive NSR of 0.75% from third party claim within 5km of SLDC perimeter (Area of Interest).
AUGUST 2008
11
BIZMARK
TERRAZAS
STA. EULALIA
NAICA
PARRAL
INDE
SAN
LUIS DEL CORDERO
PITARRILLA
PLATOSA
MAPIMI
VELARDEÑA
SAN
AGUSTIN
PRECIOSA
MAIN FEATURES
0
9 Within the Mexican Altiplano
Megallogenic Province
9 Three styles of Mineralization:
Mineralization:
Polymetallic AgAg-CuCu-ZnZn-Pb veins,
veins, carbonate
replacements and skarns
SAN JUAN
AVINO
SALADILLO
50
KMS
Ë
Ë
Ë
#
Ë
Ë
Ë
##
#
Ë
# #
Ë
Ú
9 100% rights of claims can be optioned from
Exploraciones del Altiplano, S.A.
S.A. de C.V.
C.V.
Figure 6.1 Location Plan for San Luis Del Cordero Project, Durango State, Mexico.
(Prepared by Prospero, 2008)
AUGUST 2008
12
105°
104°
SAN LUIS
DEL CORDERO
25°
25°
0
24°
50
KMS
24°
105°
104°
Figure 6.2 General Locations of SLDC Project, Mexico.
AUGUST 2008
13
Figure 6.3 Location of SLDC Project Mining Concessions Durango State, Mexico.
AUGUST 2008
14
7.0 ACCESSIBILITY, LOCAL RESOURCES, CLIMATE, AND
PHYSIOGRAPHY
7.1 Access to the Property and Proximity to Population Center(s)
The project area can be reached from Durango City via Federal highways 40 (DurangoTorreon) and then westerly about 50km on highway 39 to Nazas and then northerly for 23km
on a good secondary road to San Luis del Cordero (Figure 6.2). Access to the project area
requires two-wheel drive but local trails and tracks require four wheel drive truck or ATV.
Permission for local access may be required from local ranchers that should be kept informed
of exploration activity.
7.2 Topography, Elevation and Vegetation
The SLDC project is located in the Eastern Sierra Madre Occidental Physiographic subprovince near the eastern edge of the Mesa Central Province (Central Plateau Province) near
the boundary with the Sierra Madre Madre Oriental. In the SLDC area jasperoid alteration and
dioritic and granodioritic bodies form resistant areas which result in modest relief of about 200
meters with elevations ranging from about 1500 meters and 1700 meters with old workings
mainly between 1500m and 1600m.
San Luis is situated in an area with various bushes, shrubs and cactus. Natural grass
meadows are used to graze cattle and other livestock. Wild fauna is not abundant but wild
turkeys and several other varieties of birds, rabbits, coyote, lizards, white tail deer, and
rattlesnakes are seen.
7.3 Relevant Climate and Length of Operating Season
The climate in the region is characterized by elevated temperatures during the summer
months with cooler temperatures in the winter months producing some freezing from
December through February. The area is semi-arid with maximum temperatures over 30ºC
during the summer season. The rainy season extends from June through October with
occasional rain during December and January. The average annual precipitation is about 50mm
but during wet years rainfall reaches 250 mm.
7.4 Availability of Surface Rights, Power, Water and Mining
Personnel
The SLDC is not part of an environmental reserve or protected area and permits are not
required for early stage exploration and drilling. Surface rights are controlled by local ranchers
and farmers and they should be kept informed of planned exploration. Roads should be planned
to assist locals with access and gated and/or cattle guarded as necessary.
Drilling companies and mining contractors are available in Durango, Zacatecas and
Fresnillo and other areas of Mexico and San Louis del Cordero provides a local labor pool. The
AUGUST 2008
15
SJDC area is used for grazing cattle but many of the ranchers and hands would quickly switch
to better paying jobs at a local mine.
Mining personnel are available and they have been trained to work at local mines in
Zacatecas and Durango States.
7.5 Potential Areas for Tailings Disposal, Heap Leach Pads and Plant
Sites
A number of meadows provide flat or basin areas for tailings disposal and plant sites.
Land is relatively inexpensive and sufficient areas could be purchased for all mining needs.
8.0 HISTORY
Systematic mining in the Altiplano of Mexico started in pre-colonial times with mines
in the Velardena mining district and in the Mapimi mining district located or re-located by
Spanish prospectors late in the 16th century. The presence of mineralization near San Luis del
Cordero was probably also known to the early Spanish prospectors. The mineralization at the
SLDC would have generated minimal interest because it was not amenable to silver recovery
by simple amalgamation.
The first formal operation on the SLDC took place in the Santa Rosa Mine and was
carried out by Torreon-based Compañia Minera del Carmen, SA de CV with records
suggesting extraction in the order of 70,000 tons during the 1950’s and 1960’s with 300 tons
lots, shipped directly to the now inactive Industrial Minera Mexico SA (IMMSA) smelter at
San Luis Potosi, yielding 600-700 g/t Ag and 2% to 2.5% copper. At some uncertain date
during the 1960’s or 1970’s IMMSA carried out at least two diamond drill holes of EW
diameter aimed at the Sta. Rosa vein but the results and details are unknown.
8.1 Previous Ownership
Compania Minera del Carmen controlled the property in the 1960’s and 1970’s and
following completion of mining in the Santa Rosa Mine, the concessions were relinquished.
The Tecolotes concession, covering the Santa Rosa Mine has been held since July 1992 and
Exploraciones del Altiplano, SA de CV initially filed claims in the district in 1996 and the
“Tecolotes” claim was optioned in 1999 and purchased in 2002. Altiplano finalized
consolidation of all ground in the district by claiming of the Cordero IV concession in
November 2006. On May 12, 2006 Minera Hochschild Mexico, SA de CV (“HC”) and
Altiplano signed an exploration option agreement allowing HC to obtain rights to the project
by spending US$2,700,000 in four years. After completing sampling of workings, geological
assessment, and 6 diamond drill holes totaling 1,477.40m, the property was returned to
Altiplano in 2007.
8.2 Previous Exploration
At some uncertain date during the 1960’s or 1970’s IMMSA carried out at least two
diamond drill holes of EW diameter aimed at the Sta. Rosa vein but the results are unknown.
During the year 2000 Apex Silver Mines Ltd. executed diamond drill holes SL-001, SL-002,
SL-003 under the Sta. Rosa mine (Figures 8.1, 8.2, and 8.3), and commissioned detailed
mapping of the central and western portion of the district. During 2007 Minera Hochschild
AUGUST 2008
16
Mexico, SA de CV (“HC”) carried out a 6 hole diamond drill program (Figure 8.1) both at the
Sta. Rosa mine area (2 holes; Figure 8.4), as well as in the India Bonita target zone (3 holes;
Figures 8.4 & 8.5) and NE vein structure (1 hole). Altiplano conducted underground
sampling of the Santa Rosa workings above the water table at about 40m shaft depth
(Figure 8.6).
8.3 Historic Production and Resource Estimates
Altiplano, the vendor, used production records to estimate historic production of about
70,000 tons yielding 650 g/t Ag and 2.5% Cu. The records are no longer available to
Prospero and the vendor’s historic production figures, presented as property
information, have not been verified by the writer or Prospero and should not be relied
upon. Workings and dumps present at the Santa Rosa Mine and India Bonita Mines suggest
that the 70,000 tons is a reasonable estimate of material removed from the property and it is
reasonable to expect that higher grade material was removed, resulting in lower grades for
material left in the Santa Rosa Mine (Figure 8.6) and India Bonita Mine (Figures 12.1).
In 2000 sampling of the Santa Rosa working and 3 diamond drill holes that intersected
the Santa Rosa structure up to 200m below the workings allowed Altiplano (reported by HC) to
estimate a small inferred resource of 81,000 tons @460 g/t Ag, 1.2% Cu and 2,5% Zn in the
Santa Rosa vein (Perez Corona, 2007). The estimate is vendor generated and does not contain
information regarding methods used by Altiplano. The estimate is presented as historic
information and is not supported by a technical report. The historical estimate has not
been confirmed by the writer or Prospero and should not be relied upon or used for
economic evaluation.
AUGUST 2008
17
DDH’S APEX SILVER
Figure 8.1 Geology of the SLDC showing locations of veins and Apex and HC
drill holes. A number of adits and shafts were used to exploit the Santa Rosa
and India Bonita structures (Prepared by Prospero, 2008).
AUGUST 2008
18
Figure 8.2. SW-NE Section in the Plane of Apex Drill Holes SL-0-1 & 2.
(Section Looking NW; Prepared by Prospero, 2008)
AUGUST 2008
19
Figure 8.3. NE-SW Section in the Plane of Apex Drill Holes SL-0-3.
(Section Looking NW; Prepared by Prospero, 2008))
AUGUST 2008
20
Meters
24.10
24.90
25.15
25.45
25.65
25.80
26.00
26.45
27.55
28.80
24.90
25.15
25.45
25.65
25.80
26.00
26.45
27.55
28.80
28.95
28.95
29.50
30.55
31.00
31.40
29.50
30.55
31.00
31.40
31.80
Width
0.80
0.25
0.30
0.20
0.15
0.20
0.45
1.10
1.25
0.15
4.85
0.55
1.05
0.45
0.40
0.40
7.70
Ag
ppm
68.90
850.00
38.50
741.00
19.30
19.50
30.80
3.60
22.50
101.00
102.00
35.30
3.70
326.00
4.40
51.30
89.29
Zn
%
1.15
1.84
2.02
3.00
3.92
1.63
1.17
1.37
2.22
10.45
2.00
2.00
0.36
1.78
0.26
0.35
1.61
Cu
%
0.54
2.46
0.08
6.18
0.14
0.11
0.18
0.02
0.26
2.25
0.64
0.52
0.06
1.90
0.03
1.14
0.62
Figure 8.4 N-Section in the in the Plane of HC Drill Hole HCSR-2 Testing Santa
Rosa Structure (Prepared by Prospero, 2008).
AUGUST 2008
21
Meters
83.65
84.75
84.75
85.70
85.70
86.40
86.40
87.50
87.50
88.20
88.20
89.10
89.10
89.40
89.40
89.80
89.80
90.60
90.60
91.05
91.05
92.10
Width
1.10
0.95
0.70
1.10
0.70
0.90
0.30
0.40
0.80
0.45
1.05
8.45
Ag
ppm
356.40
181.40
23.00
13.80
49.40
6.30
44.40
300.90
144.20
152.00
89.60
123.95
Pb
pct
1.62
3.50
0.30
0.14
0.34
0.20
0.90
3.18
2.84
0.87
0.79
1.29
Cu
pct
0.09
0.10
0.01
0.00
0.04
0.00
0.04
0.14
0.07
0.11
0.03
0.05
Zn
pct
2.44
2.58
0.20
0.06
0.80
0.21
2.15
6.06
4.75
1.50
2.06
1.87
Figure 8.5 N-S Section in Plane of HC Drill Holes HCIB-1 and HCIB-2 Testing
India Bonita Vein System.
(note India Bonita veins generally dip southerly 70-80° but best intersection suggest shallower dip)
AUGUST 2008
22
LONGITUDINAL SECTION N60W LOOKING NE SANTA ROSA VEIN
Figure 8.6 NW-SE Section Showing Santa Rosa Workings and Altiplano
Sampling Above Water Table.
9.0 GEOLOGICAL SETTING
9.1 Regional Geological Setting
The geology of Durango State, Mexico is dominated by extensive volcanic fields that form one
of the world’s largest deposits of rhyolitic ignimbrite and tuff. The volcanic field has been divided into
an early, Lower Volcanic Group (LVG) consisting mainly of intermediate composition volcanic and
volcaniclastic rocks and a later (Oligocene), Upper Volcanic Group (UVG) consisting of acid volcanic
rocks.
Early Tertiary to Mesozoic age, sedimentary rocks occur in the eastern part of Durango State
and as windows in the extensive Tertiary volcanic fields. Younger intrusive bodies cut the sedimentary
rocks. Quartz feldspar porphyry and dioritic or granodioritic bodies intrude limy sedimentary rocks on
the SLDC property and result in large area of skarn development.
AUGUST 2008
23
9.2 Property Geology (Figures 9.1 & 9.2)
The SLDC property is located in the Sierras y Llanuras de Durango with the property geology
described as part of a regional mapping project by the CRM. The local geology has been mapped by
Apex, Altiplano and HC and field checked by Prospero and the writer. A plan of the SLDC geology
compiled by Prospero is presented as Figure 9.1 with the stratigraphic section for the SLDC presented
as Figure 9.2 and a geological plan showing the area of silicification and jasperoid alteration is
presented as Figure 11.1.
The SLDC is underlain by Mesozoic and Tertiary clastic sedimentary rocks and limestone
covered by large areas of recent alluvium. The oldest sedimentary rocks consist of interbedded shale,
sandstone and limestone of the Jurassic La Casita Formation. The Jurassic sedimentary rocks occupy
the core of a recumbent anticline that passes through the central part of the SLCD and are the main
country rocks for the India Bonita vein structure. The Jurassic sedimentary rocks are hornfelsed near
intrusive contacts and vein structures. Massive limestone and thick bedded dolomite with minor
interbedded shale of the Cretaceous Cuesta del Cura Formation overlie the Jurassic sedimentary rocks.
The Questa del Cura Formation is estimated to be up to 200 meters thick and is converted to skarn
near the Tertiary quartz feldspar porphyry and granodiorite contacts.
Conglomerate, containing limestone fragments and boulders, is part of the Tertiary Ahuichila
Formation which reaches thicknesses of 50 meters. A few small outcropping of this unit have been
mapped.
The Tertiary conglomerate is overlain by rhyolitic tuff of the Cerro Prieto Formation cover
much of the SLDC near and west of the main road. Quaternary Basalt overlies rhyolites east of the
main road about two kilometers west of San Luis del Cordero. Recent alluvial cover is the most
extensive unit on the SLDC.
Mineralization is believed to be related to quartz feldspar porphyry and diorite or granodiorite
intrusive rocks of Tertiary age with intrusive bodies sub-parallel to the trends of the Santa Rosa and
India Bonita vein structures.
The geological picture is complicated by a recumbent fold with the northerly trending axis
centered on the SLDC. Thrust fault, normal faults and fracture zones complicate the distribution of
units and cause segmenting of the geophysical response.
AUGUST 2008
24
Figure 9.1 Generalized Geology of SLDC, Durango State, Mexico.
AUGUST 2008
25
Figure 9.2 Stratigraphic Section for the SLDC Project Area.
AUGUST 2008
26
10.0 DEPOSIT TYPES (Figure 10.1)
10.1 Mineral Deposit Type/Model for the Property
The SLDC property contains a number of workings in skarnified and hornfelsed areas
of Mesozoic limy sediments along the contact of a dioritic or granodioritic intrusive bodies.
The setting is favourable for skarn type and replacement deposits like Velardena and Victoria,
replacement and skarn deposits held by others in Durango State. Previous exploration and
exploitation was directed at mineralized and veined shear zones with the Santa Rosa and India
Bonita the most developed and some exploration of the NE vein zone.
10.2 Geological Concepts Used For Exploration of the Property
The concept for exploration of skarn and contact metamorphic deposits in the Sierra
Madre is to locate geophysical anomalies associated with the conductivity of sulfide bodies or
magnetism associated with bodies enriched in pyrite, magnetite or pyrrhotite. The inducted
polarization method has been successfully used to identify sulfide concentration buried below
post-mineral or recent alluvial or soil cover. The quality of the geophysical interpretation is
enhanced by the availability of detailed geological and alteration mapping. The evaluation of
vein type deposits can be enhanced if mineralization is associated with conductive sulfides and
if resistivity signatures are characteristic of well mineralized lodes.
11.0 MINERALIZATION (Figures 11.1)
11.1 Mineralized Zones Encountered
Three mineralized structural epithermal vein zones, the Santa Rosa, India Bonita and
Veta NE have been explored with workings and drilling. Modest exploitation has occurred
from the Santa Rosa Mine workings and minor exploitation is indicated by the smaller
workings at the India Bonita Mine. Areas of skarn or replacement mineralization, occurring on
the SLDC, have not been the main exploration targets in the past. In the Santa Rosa Mine area
a zone of silicification or jasperoid occurs along a WNW trend that splays from the EW
trending Santa Rosa structure. Previous drilling has shows that quartz and carbonate veins with
galena, chalcopyrite, pyrite, sphalerite and tetrahedrite fill several sub-parallel structures in the
Santa Rosa and India Bonita vein systems with mineralization occurring within a width of 50
to 100m (Figures 8.1 to 8.5) along east-west trending zones with 60-80°southerly dips. The
Santa Rosa and India Bonita structures have been traced for over a kilometer in workings and
drilling. The Santa Rosa structures has a possible WNW splay indicated by silicification and
jasperoid formation and the India Bonita structure bends to the SSW along its westerly trend
(Figures 8.1 & 11.1). The Veta NE structures has been followed for about 200m and tested by
a single drill hole.
AUGUST 2008
27
Veins under
Limestones
Santa Rosa
Mine
India Bonita
Mine
HCSR-02
POSSIBLE LARGE
TONNAGE
TARGETS
EXPLORATION STRATEGY
•
•
DRILL THE TETRAHEDRITETETRAHEDRITE-BEARING VEINS FOR SHALLOW RESOURCE
WITH POTENTIAL FOR SEVERAL MILLION TONS
FOLLOW THE VEINS DOWNWARDS INTO REPLACEMENT DEPOSITS,
SKARNS AT THE INTRUSIVE CONTACT IN JURASSIC LIMESTONES
OR BELOW THE THRUST FAULT
Figure 10.1 Section Showing Vein, Replacement and Skarn Type Targets
for Ag-Cu-Zn-Pb Mineralization on the SLDC.
AUGUST 2008
28
Figure 11.1 Figure Showing Silicification or Jasperoid Mineralization
Trending WNW in Santa Rosa Mine Area.
AUGUST 2008
29
12.0 EXPLORATION BY THE ISSUER
12.1 Geochemical Sampling
Prospero’s and Altiplano’s geochemical sampling program consisted of 104 rock
samples from surface outcrops, the India Bonita underground workings (Figure 12.1) and
further sampling in historic drill hole (Table 12.1) with another 8 samples (blank, standard and
duplicate) for QA/QC purposes. All samples were analyzed by ICP multi-element Au + 41
package at the ALS-Chemex laboratory in Vancouver, British Columbia. The elements Au,
Ag, Cu, Pb, and Zn were considered of economic interest or as possible pathfinders for silverbase metal mineralization. Prospero found that molybdenum and to a lesser degree beryllium
and tungsten were also anomalous in the India Bonita structure. Tin values were not obtained
by some analyses might prove worthwhile. A tabulation of results from surface and
underground channel samples are presented on Figure 12.1 and the results of further sampling
of hole HCRS2 is presented in Table 12.1. The geochemical sampling verifies the presence of
significant silver in the India Bonita structure and suggests that molybdenum and possibly the
lithophile elements tungsten, beryllium and tin may be of interest in skarn and replacement
type deposits or wider areas of vein or stockwork mineralization. The channel sampling did not
test the full width of the vein structure because surface outcrops and underground working did
not expose the full 8.4m vein width intersected in DDH HCIB-2.
Core samples from HCRS2 were sawed to yield half of the material for analysis with
the remainder retained in secured storage for reference. Sample sequence 70275 to 70330 were
bagged, secured and shipped to ALS Chemex for preparation and prepared pulps shipped to
North Vancouver for Au + ICP by ME-ICP41 and assay for over limit Ag, Cu, Pb and Zn.
Sample 70306, 0.52m from 48.70 to 49.22m containing calcite veinlets with sulphides,
returned >100ppm Ag and assayed 86ppm Ag and 1.38% Zn. A 2.5 meter interval from 18.5
50 21.0m contained an average of 37.7ppm Ag and an 0.52m interval from 48.70 to 49.22m
contained 86ppm Ag and the 0.95m interval from 52.2 to 53.15m (#70309) contained 76.5ppm
Ag. Further sampling by Prospero showed that core with modest sulphide-carbonate veinlets
may contain significant silver values and requires analysis.
Channel samples from surface and underground workings (Figure 12.1) showed that the
India Bonita vein system contained some high grade silver values up to 1060ppm silver
(#70231) with values associated with copper, zinc and lead mineralization and strongly
anomalous molybdenum (to 6940ppm in #70245) and vanadium (to >10,000ppm in 70255 and
70258). The values obtained by Prospero suggest that the lithophile elements molybdenum and
possibly tungsten, beryllium (values to 3100ppm in #70260) and tin should be considered
when evaluating vein, replacement and skarn mineralization.
AUGUST 2008
30
Table 12.1 Further Analysis by Prospero of ½ Core from Historic Hole
HCSR2.
Number Interval (m.)
70275
70276
70277
70278
70279
70280
70281
70282
70283
70284
70285
70286
70287
70288
70289
70290
70291
70292
70293
70294
70295
70296
70297
70298
70299
70300
70301
70302
70303
70304
70305
70306
70307
70308
70309
70310
70311
70312
70313
70314
70315
6.1-7.6
7.6-8.55
Duplicate
8.55-10.1
10.1-1.68
11.68-12.38
12.38-12.83
12.83-13.70
13.70-14.60
14.60-15.38
15.38-16.45
16.45-17.05
18.20-18.50
Blank
18.50-18.80
18.80-19.50
19.50-20.20
20.20-21.00
21.00-21.50
21.50-22.45
22.45-22.85
22.85-24.10
Std PR6 11
32.70-34.00
34.00-34.95
34.95-35.30
35.30-36.40
36.40-37.20
37.20-38.35
38.35-39.50
39.50-41.15
48.70-49.22
49.22-49.95
49.95-50.25
52.20-53.15
53.15-53.95
54.10-55.00
55.00-56.00
56.00-57.55
57.55-58.60
58.60-59.75
Width
(m.)
1.50
0.95
1.55
1.58
0.70
0.45
0.87
0.90
0.78
1.07
0.60
0.30
0.30
0.70
0.70
0.80
0.50
0.95
0.40
1.25
1.30
0.95
0.35
1.10
0.80
1.15
1.15
1.65
0.52
0.73
0.30
0.95
0.80
0.90
1.00
1.55
1.05
1.15
Ag
ppm
3.6
6.1
5.5
12.4
4.3
5.2
9.4
5.0
15.3
2.2
4.8
1.7
9.8
39.6
40.7
53.9
14.1
5.6
4.0
12.4
42.9
1.3
1.3
8.8
2.8
0.9
2.0
8.1
1.6
1.1
86
13.2
0.8
76.5
1.6
0.6
1.0
0.8
15.2
3.9
Comments and Observations
Sil-chl-hem hornfels
Sil-chl-hem hornfels
Sil-chl-hem-cal hornfels,
Qv-cal hornfels
Hornfels minor Cal-hem-chl
Qv-hem in hornfels
Hornfels clast sil-hem
Hornfels hem-Cal-veins
Hornfels
Hornfels veins cal
Hornfels veinlets cal-chl
>>hem, veinlets white cal
As color Mnox-feox-Cuox
Hornfels feox-cuox-veinlets cal
Hornfels feox-cuox-veinlets cal
As, gossen, Mnox-hem
Hornfels, ep-chl-cal-py
Gossen hem-chl-py
As >>hem, Qv
Std pr6 11
Hornfels, >hem
Hornfels chl-py in Qv
Hornfels 2-3cm Qv, hem
Hornfels, >hem,cal-Qv
Hornfels, ep-chl, py
Hornfels, >>chl, py
Hornfels, >>chl, py
Hornfels, chl, py,ep
Hornfels, v cal, v sulp Zn 1.38%
As wk hem & cal.
Hornfels
Hornfels
Hornfels
Hornfels
Hornfels
Hornfels
Hornfels, chl, py, ep
Hornfels chl, py, ep
AUGUST 2008
31
cont. Table 12.1
#
Interval (m)
70316
59.75-61.20
70317
61.20-61.80
70318
Blank
70319
62.15-63.40
70320
63.40-64.22
70321
64.22-65.05
70322
65.45-66.15
70323
NA
70324
122.30-122.55
70325
174.70-175.75
70326
177.50-178.80
70327
178.80-180.15
70328
180.15-180.45
70329
195.45-196.60
70330
196.60-197.80
Width
(m)
1.45
0.60
1.25
0.82
0.83
0.70
0.25
1.05
1.30
1.35
0.30
1.15
1.20
Ag
ppm
2.1
20.6
0.2
19.2
0.5
0.3
0.7
5.3
1.7
0.2
0.2
0.4
0.3
Comments and Observations
Banded sil, hem, >chl
Sil hornfels chl, ep, hem, py
As?, >>chl, hem
Hornfels, hem, chl, py layers
As?, >>chl,hem
Hornfels, chl, sil sed, ep & py
Below vein , ser & py
Contact (CZ) Sil, v py
Cz Cal v chl & py
Cz v cal, chl, py
Cz v cal, chl, py
V white cal, py
Cz v cal, chl, py
Cz v cal, chl, py
12.2 Induced Polarization Geophysical Program (Figure 12.2, 12.3 & 21.1)
A time domain 3D Induced Polarization (“IP”) survey was conducted from June 05,
2008 to June 25, 2008 on 17 north-south line spaced at 100m intervals (1W to 17W) by SJ
Geophysics (“SJ”) of Canada (Dobrescu and Ko, 2008; Rastad and Dobrescu, 2008). A dipole
array consisted of a modified pole-dipole configuration with a combination of 8 or 12 dipoles,
for a total array length of 800m. For a majority of the lines the remote current was placed at
station 1100N on line 7W or at 3125N and 2W for the southern part of lines 5W, 6W and 7W.
The IP readings from each day’s surveying were downloaded to a computer and entered into a
database archive every evening. The data base program allowed the operator to display the IP
decay curves and a visual review of the data quality on site. The acquired data was inverted to
provide a subsurface distribution of resistivity and chargeability.
The 23 line-km IP survey was interpreted in a report by Rastad and Dobrescu (2008).
SJ’s survey shows that chargeability anomalies appear to correlate with resistivity features and
mapped geology (Figures 12.3 & 12.4).
All receiver lines were approximately 800m in length and current lines were 1300m
long. Stations were placed every 50m, and clinometer measurements were taken at all stations.
DGPS waypoints, defined in the UTM NAD 27 (Mexico) Projection, Zone 13, were
established by a Prospero crew of line cutters. SJ Geophysics provided geophysicist Jan
Dobrescu and two trained geophysical assistants and Prospero provided a crew of eight local
helpers and geological support.
12.2 Discussion of Induced Polarization Results
The modeled chargeability in milliseconds is shown in Figure 12.4 with anomalous
features C1 through C5 with >22ms illustrated on Figure 12.4. The strongest chargeability
response C1 has a >35ms core (~300 x 500m), shown in dark green on Figure 12.4, surround
by anomalous chargeability >22ms in green. The C1 chargeability feature, in the northwest part
of the grid is approximately 500m wide and over 800m long and open to the north and west. If
AUGUST 2008
32
Phase 1 drilling shows the anomaly to result form significant mineralization then further Phase
2 IP definition should be considered. Chargeability feature C2 in the northeast part of the IP
grid is a >22ms feature open to the north and east but without the strong core found at C1. The
large size of the anomalous feature justifies future evaluation. Smaller chargeability features
C3, C4 and C5 are within the grid and have been delineated. The 100m diameter C5 feature is
the main chargeability feature in the southern part of the grid which generally has low, <17ms
chargeability response. Figure 12.4 shows the grid separated by an east-west trending line near
2800N which show a northern domain of higher chargeability.
The resistivity shown on Figure 12.3 separate the grid into three contrasting resistivity
zones with R1 to the southwest separated by a linear resistivity low L1 from resistivity low
zone R2 in the southeast and a mixed resistivity zone R3 in the central and northwest area
with resistivity contrasts separated by linear features possibly reflecting fault structures.
The combined chargeability and resistivity was described in 4 geophysical zones
designated G1 (northwest), G2 (southwest), G3 (northeast) and G4 (southeast). G1 contains
chargeability feature C1 with the higher resistivity area R1 dipping northerly below the strong
chargeability. The interpretation was possible mineralization near or above an intrusive
contact. Chargeability anomaly C1 and geophysical zone G1 represent the main IP drill target.
AUGUST 2008
33
Figure 12.1 Sampling of India Bonita Mine by Prospero and Altiplano
(Prospero, 2008).
AUGUST 2008
34
Figure 12.2 Location Plan for Surveyed IP Grid.
(from Rastad and Dobrescu, 2008)
AUGUST 2008
35
Figure 12.3 3D Distribution of Resistivity (from Rastad & Dobrescu, 2008).
(note MS=Ohm-meters)
AUGUST 2008
36
Figure 12.4 3D Distribution of Chargeability (from Rastad & Dobrescu, 2008).
AUGUST 2008
37
13.0 DRILLING
Prospero has not conducted diamond drilling on the SLDC. Historic drilling,
including 3 holes completed by Apex and 6 holes completed by HC, is summarized under
history in section 8 of this report.
14.0 SAMPLING METHOD AND APPROACH
14.1 Sampling by Prospero
A total of about 50 rock samples were collected by Prospero geologists from outcrops,
workings and dumps to evaluate extensions of known mineralization and previous sampling. Chip
samples were collected over a specific length or panel size at a sample grid location with a GPS
NTS and elevation reading recorded for each sample center. Initial evaluation samples collected by
Prospero that established the validity of the SLDC project are tabulated on Figure 12.1.
14.2 Prospero Rock Sampling Procedures
In order, Channel samples were obtained by Prospero to estimate grade of
mineralization in mine workings. A vertically or horizontally oriented channel were spaced
every 3 meters along the sides of the workings. The various steps of sample collection were
undertaken under the supervision of Elisiel Moreno, Geological Engineer, with over 10
years experience as an exploration and mine geologist in México. A detailed description of
the various sample collection and processing steps is described as follows:
• Marking of sample lines. A 50 meter tape is extended along the wall of the
working and a vertical or horizontal line is marked with a red spray can across the
mineralized body where possible every 3 meters. Sample lines are vertical or
horizontal depending on whether the mineralized body is a manto deposit in subhorizontal position, or a sub-vertical vein. Individual samples along the vertical or
horizontal line are separated by short red lines. The size/length of individual
samples is selected according to natural geological boundaries of the sub-horizontal
strata or vein. The number of individual samples generally varies from 2 to 3 per
line. The maximum length of an individual sample is 1.5 meters.
• Numbering sequence of the samples. The sequence initiates in each line in the
lowermost part or the footwall side of the orebody which generally corresponds to
the host rock contact. When the working allow, an additional sample is obtained in
the hangingwall or footwall to evaluate metal values in the host rocks. The sample
numbers are recorded in the walls of the workings with red spray paint. The
numbering sequence is organized in a field notebook.
• Numbering of samples. The numbering sequence used for sampling is continuous
and ascending. Assay Quality Control requires systematic insertion of standards,
blanks, and pulp duplicates (see following discussion).
AUGUST 2008
38
• Sample collection. The surface is first cleaned and evened out with a rock hammer
and chisel, to create a clean and flat surface. A channel is excavated 10 centimeters
wide and 3-6 centimeters deep with a hammer and chisel. The size of the channel
varies with the hardness of the material. As the material is being cut it is collected
with a 3/8” steel hoop with canvas in the middle. The material is then placed on the
ground over a large piece of canvas and is fragmented down to fragments <1/2”, it
is homogenized and quartered when the amount of material exceeds 6 kilograms.
The sample (maximum of 6 kgs) is then placed inside a plastic bag. The samples are
tagged by labeling a piece of flag tape with an indelible marker pen, and the tag is
placed inside the sample bag. The sample bag is also labeled on the exterior surface
with the indelible marker pen. Labeled sample bags are then placed inside 30
kilogram sacks.
• Transport of the samples to the local warehouse. The sacks with samples are
transported every day in a pickup to the local warehouse for temporary storage and
are kept in a secured room.
• Storage of the samples. The sacks are placed in numerical order and covered with
black plastic to protect from dust contamination. Access is controlled by 2
company representatives.
• Sample transport to the assay laboratory. At the end of each sampling
campaign a vehicle is loaded with the sacks and driven to a courier for delivery to a
Mexican ALS Chemex preparation center.
14.3 QA/QC Protocol for Proposed Drilling
After considering the success of the initial exploration, Prospero is planning on
implementing a more comprehensive QA/QC program for drilling to include more standard,
blank and check assays. During the proposed Phase 1 drill program the following QA/QC
protocol has been established by Prospero (company memorandum dated July 2008) as
follows:
1. Drilling Supervisión. Supervision of the drill program, sampling of the core, and
collection of the metallurgical sample is under the supervision of the project
geologist. During drilling round the clock supervision of 2 twelve hour shifts is
required by the geologist and his assistants. At the time of target intersection it is
important to take notes on core recovery and the conditions of the core.
2. Transport of the core to the core shack. Once the drill hole is completed the core
boxes are loaded into a pick up and tied together with a rope to avoid any core falling
out during transport.
3. Placing of the core for logging. In the secured core shack the core is placed in
sequential order above benches specially conditioned to an adequate chest-height with
lamps that provide proper ilumination. The secured core shack is a rented warehouse
located in the town of San Luis del Cordero.
4. Calculation of core recovery and RQD (Rock Quality Data). With the core placed
in decending order, the number of core pieces greater than 10 centimeters in length is
determined in order to calculate the RQD. Measurement of the length of recovered
core between each drilling interval is used to estimate the percent recovery of the
core.
AUGUST 2008
39
5. Logging procedures and sample selection. The core is described according to
intervals of equal lithology, according to formations and members, paying special
attention to subdivisions in the mineralized zones. Sample selection is carried out in
the mineralized intervals with a black marker pen indicating where each sample
initiates and ends and showing arrows that indicate the interval to be sampled. The
length of the samples varies depending on the type of material being sampled. The
maximum length for individual samples does not exceed 1.5 meters.
6. Numbering of samples. Within the interval that is to be sampled a sample number is
marked with a black marker pen that identifies the sample. The numbering sequence
used for sampling is continuous and ascending with respect to depth in a specific
diamond drill hole. Numbering control is carried out in a field notebook.
7. Assay Quality Control, during the period May 2008 to July 2008, required
systematic insertion of standards, blanks, and pulp duplicates in the following
manner:
• Two standards with predetermined values (Standard PR611 and Standard
M5374) are inserted successively 2 every 100 samples, each one between
the ranges 50-55 and 95-100.
• Two blanks are inserted every 100 samples, one blank after a visually high
grade sample occurring within each 50 sample interval..
• Duplicate pulp samples are inserted in the sample sequences 35-40 and 7580. Thus, 2 duplicate samples exist for every 100 pulp samples that are sent
for assaying. Placing of the duplicate pulps is done by the laboratory once
all the pulps are produced.
For the period of time starting August 2008 and forward the systematic insertion
of standards, blanks and pulp duplicates will be carried in the following manner:
1.At least three standards with predetermined values are inserted successively
every 100 samples, each at predetermined sample numbers terminating in 3,
34, 67. Both gold standards (see Table 14.2) and silver and base metal
standards (see Table 14.2) will be used depending on the type of deposit in
order to develop statistical comparative data on all metals of economic
significance in polymetallic mineralization.
2. Two blanks are inserted every 100 samples, one blank after a visually high
grade sample occurring within each 50 sample interval.
3. Duplicate pulp samples are inserted in the sample sequence 35-40 and 75-80.
Thus 2 duplicate samples exist for every 100 pulp samples that are sent to
assaying. Placing of the duplicate pulps into the stream of samples is done by
the laboratory once all the pulps are produced.
4. Check assays from a referee laboratory will be conducted on 4 of 100
duplicate pulp samples which are selected to represent a range of low to high
grade assays.
8. Sampling of the Core. Splitting of the core carried out with a diamond saw that
cuts the core in half. A half is placed in a plastic bag and is tagged by labeling a
piece of flag tape with an indelible marker pen and inserting the numbered flag
and/or an assay tag. The same number is also placed on the outside of the plastic
AUGUST 2008
40
bag. The remaining half core is ordered and returned the core box for reference
and later use. Sample selection and splitting of the core is carried out by trained
geological technicians with experience in core splitting and under the supervision
of the geologist.
9. Storage of core boxes and transport of samples to the Assay Laboratory.
The core boxes are placed inside secured rooms. The keys, permitting access, are
controlled by two company representatives. The samples for assaying are placed
into 30 kilogram sacks, loaded onto a company vehicle and driven by a company
employee to a courier service for shipment to a sample preparation laboratory of
ALS Chemex in Hermosillo, Sonora or in Guadalajara, Jalisco, México.
10. The pulps are sent from Hermosillo or Guadalajara to ALS Chemex in North
Vancouver for assaying.
11. Assay Methods. The assay methods currently used by ALS Chemex are MEICP61m or ME-ICP41m for the metals and Au ICP21 for gold. The Code OG62
is for silver overruns of 100 ppm.
Table 14.2 Supplier for Analytical Standards.
GOLD STANDARDS
SUPPLIER
CODE
Au
ppm
Prepared by Newmont
MS-374
1.007
Prepared by Newmont
PR-611
0.428
Analytical Supply Solutions, OREAS
.307
Ltd.
52Pb
www.explorationgeochem.com
OREAS
.841
50Pb
OREAS
1.52
6Pc
OREAS
4.76
61d
Ag
ppm
0.6
1.2
1.3
Cu%
82ppm
192ppm
0.338
QMP
2.5
0.744
QMP
Greywacke
9.27
COPPER STANDARDS
Ag
Cu%
CODE
Au
ppm
ppm
Analytical Supply Solutions, Ltd. OREAS 94
1.15
www.explorationgeochem.com
OREAS 96
3.93
COPPER-LEAD-ZINC-SILVER-GOLD STANDARDS
SUPPLIER
CODE
Au
Ag
Cu
Pb
Zn
ppm ppm %
%
%
Minerals Exploration & MEG-AG- 1.13 248.3 0.24
6.26 10.46
Environmental
1
Geochemisty
[email protected] MEG-CU25
0.48
.1019 2.5
1
SUPPLIER
Matrix
AUGUST 2008
Matrix
Siltstone
Siltstone
Matrix
Pb-Zn-Ag
skarn Nevada
Pb-Zn-Ag
skarn Nevada
41
15.0 SAMPLE PREPARATION, ANALYSES AND SECURITY
15.1 Sampling Personnel and Security
SLDC sampling data is from samples collected by trained geological personnel and
consultants. The writer has no reason to doubt the sampling results. Reporting and
description of sampling methods are conducted to standards recommended by the CIM and
required by NI 43-101. Sampling and geological mapping, conducted by Altiplano, was
undertaken by Martin Soto Moran, a geologist with extensive experience mapping and
evaluating epithermal Au-Ag vein and skarn deposits in the Sierra Madre and Mesa Central
of Mexico.
15.2 Sample Preparation and Analytical Procedures
The writer and Prospero follow recommended standards as outline by the CIM best
practice guidelines. The writer’s samples were secured in plastic sacks and returned to Acme
Laboratory in Vancouver for gold and silver assay and analyzed for copper, lead and zinc.
Gold analyses are by fire assay start with an atomic absorption finish (“FA-AA”) on a 30
gram split. ICP-mass spectrometer methods were used for multiple elements.
Prospero’s rock samples are delivered by Prospero personnel via courier to ALS
Chemex Laboratories in Guadalajara or Hermosillo for processing and preparation, with
sample pulps assayed by ALS-Chemex Laboratories in Vancouver, British Columbia. The
assay methods currently used by ALS Chemex are ME-ICP61m or ME-ICP41m for the
metals and Au ICP21 for gold. The Code OG62 is for silver overruns of 100 ppm.
Typical interval standards and checks on the labs were completed by Acme and
Chemex in Vancouver, B.C. A referee laboratory, possibly BS Inspectorate in Durango, will
be used for checks of drill samples. The Altiplano (now Prospero) processing and storage
facility in San Luis is clean and samples were well marked, secured and stored to industry
standards.
16.0 DATA VERIFICATION
16.1 Quality Control and Data Verification
The writer conducted a-field examination of the SLDC on May 2nd, 2008. The field
examinations included examination of old workings, skarnified limy sedimentary rocks near
the quartz feldspar porphyry or granodiorite contact and review of historic core securely
stored in Altiplano’s core logging and storage building in San Luis del Cordero. After a
review of the files on the property and a site examination of the geological setting, the writer
was of the opinion that the intrusive contact zone and vein systems on the SLDC represent
cost effective silver, copper and zinc exploration targets. The writer viewed and re-sampled
Prospero sample locations in the field. Sample data is tabulated with samples described by
number, UTM GPS location, type, width and geological notes (Table 16.1).
AUGUST 2008
42
16.2 Verification of Sampling and Analytical Data by Author (Table
15.1)
The writer toured the SLDC property with Prospero’s exploration manager Martin
Soto Moran on May 2nd, 2008 and collected 3 samples from an adit, a surface pits and a
shallow trench. The writer’s samples support the presence of significant silver, zinc and
copper grades obtained by Apex, HC, Altiplano and Prospero. The writer samples and
locations are summarized in Table 16.1. The writer’s samples were submitted to Acme
Laboratories in Vancouver for preparation and assay for gold and silver by fire assay start
with an atomic absorption finish (“FA-AA”) on a 30 gram split from the prepared sample.
Copper, lead and zinc were determined by digestion of a 1.0 gram split in aqua regia and
analysis by AA.
Table 16.1 Writer’s Check Samples from the San Luis Property.
Sample #
IB080502-1
SR080502-2
SR080502-3
Location
UTM E/N
(Elevation)
0572907E
2813832N
(1578m)
0571700E
2812854N
(1531m)
0572077E
2812817N
(1519m)
Type/
KG
Width
Pb
%
Cu %
Ag
g/t
COMMENTS
Chip/
1.99
2.0m
1.06
0.214
104
▲32 LIMY SED; CU 0.14%
Chip/
0.85
0.2m
0.04
1.183
251
Grab/
0.71
na
0.03
1.436
990
@▲20388 50m into adit;
checks 239 g/t Ag; 0.96%
Cu; 0.02% Pb & 0.19% Zn.
Siliceous rocks; secondary
copper stained; from dump
@ small shaft on Santa Rosa
structure.
17.0 ADJACENT PROPERTIES`
17.1 Relevant Data on Adjacent & Nearby Properties
The SLDC contains an intrusive contact type environment with potential for
replacement or skarn type precious metal enhanced base metal deposits and structurally
controlled vein mineralization. A number of other base metal skarn and replacement deposits
occur in similar geological settings in eastern Durango State. The Velardena mining district,
about 70km southeast of SLDC property, has been mining from skarn-replacement,
limestone replacement and epithermal veins since Spanish times. Velardena is presently
controlled by ECU Silver Mining Inc. (“EUC”).
The Ojuela-Mapimi District, about 60km northeast of SLDC, was discovered by
Spanish prospectors in 1598 and the district had strong production by Compania Minera
Penoles, S.A. (“Penoles”) from 1894 till 1932 with production reported by Consejo de
Recursos Minerales (“CRM”) of 3,732,589 tonnes yielding 470 g/t Ag, 3.73 g/t Au and
15.8% lead with total district production estimated at over 5,000,000 tonnes (Cardenas
Vargas et al., 1993). The historic production is from Mexican government publications
and has not been verified by either Prospero or the writer. The Ojela-Mapimi District is
AUGUST 2008
43
about 60km from the SLDC and similar quantities of mineralization may not occur on
the SLDC.
18.0 MINERAL
TESTING
PROCESSING
AND
METALLURGICAL
18.1 Mineral Processing and Metallurgical Testing
A number of skarns in the area have been exploited for direct shipping mineralization
containing silver, zinc, lead and copper which suggests that skarn mineralogy is compatible
with mills that have operated in the area. There are currently no mill facilities on the SLDC
property. There are ruins of a processing facility remaining from past production but
information regarding their processing methods was not available to the writer. Technical
evaluation of metallurgical processing options will be required as exploration progresses.
EUC is presently milling silver and base metal bearing vein, replacement and skarn
mineralization at Velardena about 70km southeast of the SLDC and their operation might
provide for a custom milling option or at least provide metallurgical information on similar
type mineralization.
19.0 MINERAL RESOURCE AND MINERAL RESERVE
ESTIMATES
19.1 Mineral Resource Estimates
At the present time the SLDC property is at the drilling stage and does not contain
demonstrated mineral reserves or resources.
20.0 OTHER RELEVANT DATA AND INFORMATION
The writer is not aware of any data not included in this report that would make the
report misleading or would influence the writer’s opinion that the property warrants further
exploration and evaluation by Prospero.
21.0 INTERPRETATION AND CONCLUSIONS
21.1 Conclusions and Recommendations (Table 21.1)
The SLDC is situated in a geological and tectonic environment the host numerous
precious and base metal bearing skarn, replacement and base metal vein deposits. Previous
exploration included a shaft and several levels on the Santa Rosa vein indicated the presence
of significant silver, zinc, lead and copper mineralization. The SLDC property covers
prospective contacts between quartz feldspar porphyry and granodioritic bodies with limy
Mesozoic sedimentary rocks. The favourable contact zone is mainly covered by soil and
alluvial deposits that require indirect geophysical and geochemical methods to guide drilling
and detect covered or buried mineralized bodies. A qualifying exploration program of
induced polarization was conducted by Prospero to identify prospective areas for
AUGUST 2008
44
replacement or skarn deposits and mineralized extensions of the Santa Rosa and India Bonita
vein systems. The India Bonita and Santa Rosa vein system have exploration potential along
strike and dip extensions away from historic mine workings. Holes PSLC 1 to 7 have been
selected to test for extensions. The contact areas between intrusive rocks and limy
sedimentary rocks provide targets for skarn and replacement typed mineral deposits. A
Contact or skarn mineralization may be the cause of the strong chargeability anomaly C1 in
the NW part of the IP grid.
The success of the initial exploration provides justification for further drilling of the
SLDC with a recommended Phase 1 drill program of 1,500 meters. Seven holes (PSLC-1 to
7) are proposed to test extensions of the Santa Rosa and India Bonita vein structures and hole
(PSLC-8) is proposed to test the strong chargeability anomaly in the northwest part of the IP
grid (Table 21.1). The IP anomaly could represent:
1. a patch of pyrite-bearing jasperoid which outcrops about 350m north of the IP
anomaly. The jasperoid outcrop does not explain the anomaly depth which extends
below the project base of the limestone,
2. Santa Rosa type pyrite and tetrahedrite mineralization which is known from
workings and historic drilling to extend below the limestone contact,
3. represent intrusive with dissemiated sulphides since a pyritic dyke outcropping near
the jasperoid about 350m north of the IP anomaly, or
4. Some combination of pyritic jasperoid, tetahedrite bearing pyritic veins and/or
sulphide bearing intrusive rocks with adjacent mineralized skarn.
AUGUST 2008
45
Table 21.1 Proposed Phase 1 Drill Holes.
PROSPERO SILVER DIAMOND DRILL HOLE PROGRAM
SAN LUIS DEL CORDERO, DGO
LOCATION
EAST
ELEVATION
TARGET
DDH Id
(m)
NORTH (m)
(m)
INDIA
BONITA
PSLC-1
573025
2813690
1559
INDIA
BONITA
PSLC-2
572875
2813673
1600
INDIA
BONITA
PSLC-3
572953
2813586
1556
SANTA
ROSA E
PSLC-4
572060
2812665
1509
SANTA
ROSA E
PSLC-5
572135
2812666
1510
SANTA
ROSA E
PSLC-6
571985
2812666
1510
SANTA
ROSA
PSLC-7
571401
2812817
1525
IP ANOMALY
PSLC-8
570800
2813430
1619
AZIMUT (°)
DIP (°)
LONG
(m)
0
-60
105
0
-60
105
0
-60
210
0
-60
130
0
-55
120
0
-55
120
30
-55
260
0
-70
TOTAL METERS
450
1500
22.0 WORK RECOMMENDATIONS
22.1 Summary Recommendation Phase One Work Program
A recommended Phase 1 program of 1,500 meters of HQ diamond drilling is
estimated to cost US$ 300,000 (Table 22.1).
22.2 Recommendation of Phase Two Work Program
A success contingent US$600,000 Phase 2 3,000-meter drilling program is
recommended for definition of significant mineralization found during the Phase 1 program
(Table 22.2).
22.3 Opinion that Property is of Sufficient Merit to Justify Work
Recommended
In the writer’s opinion, the character of the SLDC property is of sufficient merit to
justify the recommended Phase 1 program, and the program represents a worthwhile
investment by Prospero.
AUGUST 2008
46
TABLE 22.1 RECOMMENDED WORK PROGRAM AND BUDGET FOR PHASE 1
ON SAN LUIS PROPERTY, DURANGO STATE, MEXICO.
Type
Description
Project Preparation
Personnel
Vehicles
Diamond Drilling
1,500 meters
Surface Sampling
Geochemical Costs
Reporting
Management
Office Charges
Permitting, Claim
Fees, Legal
Contingency
~10%
Phase 1 Total in US Dollars
Cost/unit
Estimated Cost
US $5,000
30,000
5,000
180,000
5,000
20,000
10,000
10,000
5,000
10,000
$120/m
20,000
US $300,000
TABLE 22.2. WORK PROGRAM AND BUDGET FOR PHASE 2 ON SAN LUIS
PROPERTY, DURANGO STATE, MEXICO (Success Contingent).
.Type
Description
Diamond Drilling
3,000 meters
Phase 2 Total in US Dollars
Total Length
All in $200/m
Estimated Cost
US $600,000
US $600,000
AUGUST 2008
47
23.0 REFERENCES AND SOURCES OF INFORMATION
Camprubi, A., Ferrari, L., Cosca, M.A., Cardellachi, E., and Canals, A., 2003. Age of Epithermal
Deposits in Mexico: Regional Significance and Links with the Evolution of Tertiary Volcanism.
Econ. Geol., Vol. 98, pp. 1029-1037.
Cardenas Vargas, J., Carrasco Centeno, M., Sanenz Reyes, R., and Macedo Palencia, R., 1993.
Monografia Geologico-Minero del Estado de Durango. For Consejo de Recursos Minerales,
Publication M-10e.
Cardenas Vargas, J., Paraga Perez, J. de J., Merida Montiel, R., Macedo Palencia, R., and Rodriguez
Salinas, J. de J., 1992. Geological-Mining Monograph of the State of Zacatecas for Consejo de
Recursos Minerales, Publication M-2e.
Christopher, P.A., 2005. Technical Report on Proposed Exploration, Claudia Project, Durango
State, Mexico. For Capstone Gold Corp. and Silverstone Resources Corp. dated December 31,
2005.
Christopher, P.A., 2004a. Technical Report on the Inde Gold Property, Durango State, Mexico. For
Sydney Resource Corporation. dated March 18, 2004.
Christopher, P.A., 2004(b). Progress Report on Drilling of the Cerro Prieto and El Manto Zones,
Tejamen Silver Property, Durango State, Mexico. For Oremex Resources Inc. dated August 6, 2004.
Christopher, P.A., 2004(c). Progress Report on Drilling of the Tejamen Silver Property, Durango
State, Mexico. For Oremex Resources Inc. dated May 10, 2004.
Christopher, P.A., 2003(a). Technical Report on Proposed Exploration Ventanas Gold-Silver
Property, Durango State, Mexico. For Capstone Gold Corp. dated May 9, 2003.
Christopher, P.A., 2003(b). Technical Report on Proposed Exploration Claudia Project, Durango
State, Mexico. For Capstone Gold Corp. dated December 1, 2003.
Christopher, P.A., 2003(c). Technical Report on Proposed Exploration Promontorio Gold-Silver
Property, Durango State, Mexico. For Capstone Gold Corp. dated November 28, 2003.
Christopher, P.A., 2003(d). Technical Report on Proposed Exploration Montoros Project, Durango
State, Mexico. For Capstone Gold Corp. dated December 4, 2003.
Christopher, P.A., 2003(e). Technical Report on Proposed Exploration Cozamin Project, Zacatecas
State, Mexico. For Capstone Gold Corp. dated November 25, 2003.
48
Christopher, P.A., 2003(f). Technical Report on Proposed Exploration Copala Project, Sinaloa State,
Mexico. For Capstone Gold Corp. dated December 10, 2003.
Christopher, P.A., 2003(g). Technical Report on the Tejamen Silver Property, Durango State,
Mexico. For Blackhorn Gold Mines Ltd. dated April 30, 2003, revised September 2003 and October
1, 2003.
Christopher, P.A., 2003(h). Technical Report on the San Lucas Silver Property, Durango State,
Mexico. For Blackhorn Gold Mines Ltd. dated April 30, 2003, revised September 22, 2003 and
October 1, 2003.
Christopher, P.A., 2003(i). Summary Report on the Parrilla Silver Property, Durango State, Mexico.
For Blackhorn Gold Mines Ltd. dated April 30, 2003.
Christopher, P.A., 2003(j). Summary Report on the Mezquital Silver Property, Durango State,
Mexico. For Blackhorn Gold Mines Ltd. dated April 30, 2003.
Christopher, P.A., 2003(k). Summary Report on the El Sol Silver Property, Durango State, Mexico.
For Blackhorn Gold Mines Ltd. dated April 30, 2003.
Christopher, P.A., 2003(l). Summary Report on the Chalchiuites Silver Property, Zacatecas State,
Mexico. For Blackhorn Gold Mines Ltd. dated April 30, 200.
Christopher, P.A., 2001. Geology and Mineralization of the Inde Gold Property, Durango State,
Mexico. For Hunter Dickinson Group Inc. dated October 26, 2001.
Dobrescu, J. and Ko, K., 2008. Logistical Report for Prosper Silver Corp. Induced Polarization
Survey on the San Luis Del Cordero Project. Survey conducted by SJ Geophysics Ltd., dated July
2008.
Gilmer, A.L., Clark, K.F., Conde C., J., Hernabdez C., I., Figueroa S., J., and Porter, E.W., 1988.
Sierra de Santa Maria, Velardena Mining District, Durango, Mexico. Econ. Geol., Vol. 83, pp. 10821829.
Perez Corona, J.L., 2007. Reporte de barrenacion con diamate primera etapa-Projecto San Luis del
Cordero, Durango: Internal Report Minera Hochschild Mexico, SA de CV, Julio 2007.
Ponce S., B.F., and Clark, K.F., 1988. The Zacatecas Mining District: A Tertiary Caldera Complex,
Associated with Precious and Base Metal Mineralization. Econ. Geol. V. 83, No. 8, pp. 1668-1682.
49
SAN LUtS DEL CORDERO PROJECT
Prospero Silver Corp., 2008a. Procedure for sample collection, security, and data verification of
Mine Assay Samples. Memorandum Dated July 2008.
Prospero Silver Corp., 2008b. Procedure for sample collection and security of diamond drill hole
core samples for assaying. Memorandum Dated July 2008.
Rastad, S. and Dobrescu, J., 2008. Geophysical Report for Prospero Silver Corporation, 3D Induced
Polarization on the San Luis del Cordero Project. Draft report prepared by S.J.V. Consultants Ltd.,
dated July 2008.
Smaliwood, R., and Enriquez, F., 2003. San Dimas District, Durango, Mexico. Abstract for
presentation at Cordilleran Roundup, pp.17-19.
Smee, B.W., 2004. Results of an Audit of Reno and Elko Laboratories Nevada, USA. Prepared by
Smee and Associates Consulting Ltd., Audit jointly funded by Capstone and other Canadian listed
companies, dated September 2004.
Wallis, S., Pearson, J.L., and Hayden, A.S., 2005. Technical Report on the Velardena Project,
Durango Mexico. For ECU Silver Mining Inc. dated July 10, 2005.
24.0 SIGNATURE, STAMP AND DATE
Signed and stamped at Vancouver, B.C., on the 22 day of August 2008.
Peter A.
50
25.0 CERTIFICA TE
thi
34
Avenue, Vancouver. British
I, Peter A. Christopher, with business address at 3707 West
Columbia, do hereby certify that:
1. 1 am a Consulting Geological Engineer registered (#10,474) with the Association of Professional
Engineers and Geoscientists of British Columbia since 1976.
2. 1 am a Fellow of the Geological Association of Canada.
3. I hold a B.Sc. (1966) from the State University of New York at Fredonia, a M.A. (1968) from
Dartmouth College and a Ph.D. (1973) from the University of British Columbia.
4. 1 have been practicing my profession as a Geologist for over 35 years and as a Consulting
Geological Engineer since June 1981. 1 have authorized over 300 qualifying engineering and
exploration reports, and over 20 professional publications. I have work experience in most areas of
the Mexico, United States, Canada, Papaua New Guinea, Madagascar, Mexico and several African,
European, and Latin American countries. As a result of my experience and qualifications, 1 am a
qualified person as defined in National Instrument 43-101.
the
5. 1 have no direct or indirect, nor do I expect to receive any interest directly or indirectly in
with
in
accordance
Prospero
of
properties or securities of Prospero Silver Corp. I am independent
the application of Section 1.4 of National Instrument 43-101.
6. 1 am responsible for the preparation of the technical report entitled “Technical Report on the San
Luis Del Cordero Project” dated August 22, 2008, 1 have based this report on previous exploration
experience in Durango, Sinaloa and Zacatecas States, Mexico and on a review of reports listed in the
references and sources of data section and on a personal examination of the San Luis Del Cordero
area on May 2, 2008 and an examination of core at Exploraciones Altiplano’s core splitting and
storage facility in San Luis on May 2 2007. 1 have no experience on the San Luis Del Cordero
property prior to May 2, 2008.
7. As of the date of this certificate and 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 the Technical Report not misleading.
8. I have read National Instrument 43-101, Form 43-101F1 and believe my report is in compliance
with that instrument and form.
9. 1 consent to the filing by Prospero of the Technical Report entitled “Technical Report on the San
Luis Del Cordero Project” dated August 22, 2008 with any stock exchange and other regulatory
in
authority and any publication by them for regulatory purposes, including electronic publication
the public company files.
Signed and Stamped at Vancouver, British Columbia, the 22’ day of August 2008.
I Vi ‘&/
j
Peter A
I
r
51

August 22, 2008 - Prospero Silver Corp.

Transcription

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