EL LIMON PROJECT TECHNICAL REPORT Zaragoza, Antioquia

Transcription

EL LIMON PROJECT
TECHNICAL REPORT
Zaragoza, Antioquia, Colombia
TECHNICAL REPORT
PURSUANT TO NATIONAL INSTRUMENT 43-101
OF THE CANADIAN SECURITIES ADMINISTRATORS
Prepared For
PARA RESOURCES INC.
Prepared By:
David Bikerman, EM, MS, MAIG
Bikerman Engineering & Technology Associates, Inc.
200 Central Park South 3Q, New York, New York, 10019, U.S.A.
September 15, 2015
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CERTIFICATE OF QUALIFIED PERSONS
I, David Bikerman, M.S., Engineer of Mines do hereby certify that:
1.
I reside at 200 Central Park South, New York, NY 10019, U.S.A. I have been gainfully employed since 1978
in the field of mining and since 1981, as a Mining Engineer. I am currently a principal in the firm of
Bikerman Engineering & Technology Associates, Inc. located at 200 Central Park South 3Q, New York, New
York, 10019, U.S.A;
2.
This certificate applies to a technical report entitled “El Limon Project, Technical Report” prepared for Para
Resources Inc.("Para") by Bikerman Engineering & Technology Associates, Inc. dated September 15, 2015;
3.
I am a graduate of the Henry Krumb School of Mines and Columbia University in the City of New York, NY,
with the degree of Engineer of Mines in 1995, and the degree of Master of Science in Mining Engineering in
1985. I am a graduate of the University of Pittsburgh, Pittsburgh, PA, with a degree of Bachelors of Science
in Mining Engineering in 1981. I have over 20 years of experience in gold, silver and copper exploration and
mineral estimation, and have relevant experience in the Western USA and numerous other locations
throughout the Americas. I am registered Member # 3588 of the Australian Institute of Geoscientists
(MAIG). I am a qualified person for the purposes of National Instrument 43-101 ("NI 43-101"). I have read
the definition of "qualified person" set out in National Instrument 43-101 and certify that by reason of my
education, affiliation with 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;
4.
My most recent personal inspection of the property referred to in the Technical Report was July 26-28, 2015;
5.
I am responsible for all items in the Technical Report;
6.
I am an independent qualified person of the property and Para Resources Inc.as described in section 1.5 of NI
43-101;
7.
I have limited prior involvement with the project as a mining professional employed by Greenstone
Resources Ltd. from 1994-1996. I have performed independent consulting work for CML and FPM on the El
Limon mine over the past year.
8.
I have not received interest, direct or indirect, in the El Limon Property nor do I have any beneficial interest,
direct or indirect, in the securities of Nicaragua Milling Company Limited, or any parents or subsidiaries of
Para;
9.
I have read NI 43-101 and the Technical Report and to the best of my knowledge and belief the Technical
Report has been prepared in compliance with NI 43-101; and
10.
As of the date of the certificate, 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.
DATED the 15th day of September, 2015.
"David Bikerman"
NAME: DAVID BIKERMAN
September 15, 2015
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TABLE OF CONTENTS
Title Page
1
Date and Signature Page
2
Table of Contents
3
List of Figures and Tables
5
Item 1:
Summary ……………………………………………………………………….
7
Item 2:
Introduction ……………………………………………………………………. 13
Item 3:
Reliance on Other Experts ……………………………………………………... 14
Item 4:
Property Description and Location …………………………………………….. 16
Item 5:
Accessibility, Climate, Local Resources, Infrastructure and Physiography …...
Item 6:
History ………………………………………………………………………….. 29
Item 7:
Geological Setting and Mineralization ………………………………………… 37
Item 8:
Deposit Types ………………………………………………………………….. 45
Item 9:
Exploration …………………………………………………………………….. 47
Item 10:
Drilling …………………………………………………………………………. 48
Item 11:
Sample Preparation, Analyses and Security …………………………………… 55
Item 12:
Data Verification ………………………………………………………………. 56
Item 13:
Mineral Processing and Metallurgical Testing ………………………………… 57
Item 14:
Mineral Resource Estimates ……………………………..…………………….. 61
Item 15:
Mineral Reserve Estimates ……………………………………………………… 62
Item 16:
Mining Methods ………………………………………………………………… 63
Item 17:
Recovery Methods ……………………………………………………………… 74
Item 18:
Project Infrastructure ……………………………………………………………. 80
Item 19:
Market Studies and Contracts …………………………………………………… 81
Item 20:
Environmental Studies, Permitting and Social or Community Impact …………. 82
Item 21:
Capital and Operating Costs …………………………………………………….. 85
Item 22:
Economic Analysis………………………………………………………………. 92
Item 23:
Adjacent Properties…………….………………………..…………………….... 93
Item 24:
Other Relevant Data and Information ………………………………………….. 97
Item 25:
Interpretation and Conclusions ………………………………………………… 98
Item 26:
Recommendations ……………………………………………………………… 99
Item 27:
References ……………………………………………………………………… 100
September 15, 2015
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LIST OF APPENDICES
Appendix A:
Mining Registry Certificates RPP No12011…………………………………… 102
Appendix B:
Mining Registry Certificates Exploration Concession No 620………………… 113
Appendix C:
FPM Certificate of Existence and Legal Representative – Bogota ..…………... 115
Appendix D:
FPM Certificate of Existence and Representation - Medellin …..……………… 120
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4.2 PROPERTY DESCRIPTION
The El Limon claims historically covered a total area of approximately 321 hectares, including 129.6
hectares in RPP No 12011 and 191.1 hectares in the Concession contract #620 which is located west of the
currently exploited zone. (see Figure 4.3) Both titles are located in the Municipality of Zaragoza, in the
north of the Department of Antioquia.
Current documentation issued by the National Mining Agency (see Appendix A and B) indicates a total
project area of 277.5 hectares comprised of 86.4 hectares RPP 12011 and 191.1 hectares in Concession
#620. . FPM attorneys are investigating this discrepancy. The sales agreement between the vendor Bullet
and FPM shows the transfer of 129.6 hectares in RPP12011.
BETA notes that, as recently as 2011, RPP 12011 was comprised of three areas, as shown in Figure 4.3 by
FPM dated June 9 2014. In Figure 4.3, concession #620 is shown as area A, and RPP 12011 is shown as
areas B, C and D. All environmental studies and licenses are based on these areas. Nevertheless, the
current Certificate of Mining Registry from the National Mining Agency shows a total area of 86.4 hectares
comprised of two areas that cover the zones of current mining activity. FPM attorneys are investigating
this discrepancy. BETA notes that the all important areas for ongoing mining activities are covered by the
86.4 hectares shown in areas B and C.
Figure 4.2
Land Tenements - El Limon – Concession No 620 and RPP 12011 to the west
El Limon Mine, within RPP 12011, is located 6 kilometers (4 miles) from the suburban area of Zaragoza, to
the west of the unpaved road that joints the towns of Zaragoza and Segovia, as shown in the aerial view
below.
Bikerman Engineering & Technology Associates, Inc. August 2014
Figure 4.3 Satellite View of El Limon Property Area
September 15, 2015
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Table 9.2
Assay Results from Independent Samples Taken by Para…………………….
Table 10-1
Drill holes locations - drilled from Level 8 to define the presence of sector 5 … 48
Figure 10.2
View of the intercept of FPM-PZ-03……………………………………………. 50
Figure 10.3
Plan view of the intercept of MPF-PZ-03………………………………..…….
50
Figure 10.4
Cross Section Views of El Limon Mine……………………………………….
51
Table 13.1
Equipment in Mill Plant – May 2015…………………………………………..
60
Figure 16.1
Underground Workings at El Limon Mine…………………………………….
63
Figure 16.2
Portal Entrance, El Limon Mine…………………………………….………….
64
Figure 16.3
Drilling Schematic………………………………………………………..…….
64
Figure 16.4
Room and Pillar Extraction Method……………………………………………. 65
Figure 16.5
Typical Room and Pillar Mine – Room Development…………………………. 66
Figure 16.6
Channel Samples taken July 2011 by Four Points………………………………. 68
Figure 16.7
Channel Samples taken January 2012 by Four Points…………………………... 69
Figure 16.8
Channel Samples, Level 7 North…………………………………………..……. 69
Figure 16.9
Gold Isovalue Map of Channel Samples, Level 7 North………………..………. 70
Figure 16.10
Channel Samples, Level 7 South…………………………………………..……. 71
Figure 16.11
Gold Isovalue Map, Channel Samples, Level 7 South…………………………. 72
Figure 17.1
Conceptual Flowsheet – El Limon Mine……………………………………….
75
Table 17.1
Mill Renovation Work Schedule……………………………………………….
76
Figure 17.2
Flow Diagram of Crushing and Process Plant – MFP - 2014………………….
78
Table 17.2
List of Laboratory Equipment………………………………………………….
79
Figure 20.1
Piezometer Location Diagram……………………………………………….…. 82
Figure 20.2
Reforestation at El Limon………………………………………………………. 83
Figure 20.3
El Limon Mine Topography with Piezometer Locations………………………. 84
Figure 20.4
Tailings to be Relocated - El Limon Mine……………………………………… 84
Table 21.1
Capital Cost Summary …………………………………………………………. 85
Table 21.2
Mine Operating Cost Estimates...………………………………………………. 86
Table 21.3
Mill Operating Cost Estimates...……………………….………………………. 87
Table 21.4
Summary - Mine Development Schedule and Cost…………………………….
89
Table 21.5
Detail - Mine Development Schedule and Cost…………………….………….
90
Figure 23.1
Mines in the Vicinity of El Limon…………………………………………..….
94
Figure 23.2
Structural Map Showing Veins in Zaragoza – Segovia Trend…………………
95
Figure 23.3
Structural Map of Adjacent Properties…………………………………………. 96
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1.0 SUMMARY
Bikerman Engineering & Technology Associates, Inc. (BETA) was contracted by Para Resources Inc.
(“Para”) to produce an independent evaluation of the merit of the El Limon Property located in Zaragoza,
Antioquia, Colombia. This report presents the results of the work, BETA’s recommendations, as well as
the methodology and assumptions utilized to perform the work.
This technical report “El Limon Project, Technical Report”, dated September 15, 2015, was prepared for
Para for purposes related to its acquisition of interest in the project. This report is updated based upon a
technical report of the same name for the El Limon project prepared by BETA on August 10, 2014 for
Nicaragua Milling Company Limited.
Work presented by BETA in this report was performed by: David Bikerman, M.S., Engineer of Mines,
MAIG; and Hector Vargas, PhD, Professional Geologist. David Bikerman, the Qualified Person for this
report, conducted his most recent site visit on July 26-28, 2015. Hector Vargas’s site visit was conducted
June 9-13, 2014.
1.1
LOCATION
The El Limon Property is located in Zaragoza, Antioquia, Colombia, The project is located in north-central
Colombia, in the most northern part of the Colombian Central Cordillera, approximately 100 miles
northeast of Medellin and 200 miles northwest of Bogota, by air. By road, the mine is 165 miles northeast
of Medellin and 345 miles northwest of Bogota.
Figure 1.1
Generalized Location Map
The El Limon claims cover a total area of approximately 321 hectares, including 129.6 hectares in RPP No
12011 and 191.1 hectares in the Concession contract #620 which is located west of the currently exploited
zone. BETA notes that one block (referred to as Area 3 in Figure 1.2) of 43.2 hectares within RPP
No12011 was transferred to FPM in 2011 according to acquisition documents but is not currently listed in
the Registry of Mines. FPM attorneys state that this would appear to be a clerical error and are further
investigating. All environmental studies have been performed and licensed granted over the greater area.
September 15, 2015
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Figure 1.2
El Limon Mine Concession Location Map
1.2
DESCRIPTION OF THE TRANSACTION
Colombia Milling Limited (“CML”), a Belize company, was created to purchase an indirect 61.202%
interest in Four Points Mining SAS (“FPM”), a Colombian company that owns 100% of the El Limon gold
mine in Colombia. CML was formed on February 16th, 2015. The purchase of the 61.202% interest was
done under two separate agreements. The remaining 38.798% of FPM is owned by Minera FF SA
(“MFF”), represented by Felipe Florez V. of Medellin, Colombia.
The first agreement was between CML and Surgir Holdings S.A., a Panamanian company, for the purchase
of 100% of the shares of GD Resources S.A. (“GDR”), a Panamanian company that owns 11.2% or 5,600
shares of FPM. The only asset of GDR are the shares of FPM and it has no liabilities. The terms of the
agreement are: US$20,000 was paid as a deposit; a further US$116,000 was paid at closing on April 16,
2015; a further US$100,000 is due on October 16, 2015, and a final payment of US$84,000 on January 18,
2016 for a total consideration of US$320,000. The shares of GDR are held in escrow by Colombian
counsel until the final payment is made.
The second agreement dated April 13th, 2015 was between CML and Red Rock Resources plc (RRR), a
UK public company, for the purchase of 100% of the shares of American Gold Mines Limited (“AGM”), a
Cayman company that owns 50.002% of the shares of FPM. The only asset of AGM are the shares of FPM
and it has no liabilities. The terms of the deal are: US$100,000 was paid as a deposit; a further
US$450,000 was paid to effect closing on May 13th 2015; a further US$225,000 is due 9 months after
closing and a final payment of US$225,000 is due 15 months after closing. Also, a US$1 million
promissory note was issued by CML to RRR payable in 3 years carrying a 5% interest rate payable in
arrears and secured with the shares of AGM. A 3% NSR was granted beginning the earlier of 9 months
after the closing date or when production of at least 100 tpd are achieved for 30 consecutive days. This
royalty is capped at US$2 million and is only paid on ore from existing FPM concessions. A second
August 31, 2015
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royalty of 0.5% was granted following the payment in full of the first royalty. This royalty is capped at
US$1 million and is only paid on ore from existing FPM concessions.
In addition to the shares of FPM, CML will acquire a shareholder loan in the amount of USD$2,250,000
that RRR made to FPM.
CML and MFF agreed to a minimum investment of US$2,000,000 into FPM. It was agreed that the first
US$1million invested by CML would not dilute MFF’s position in FPM. Thereafter MFF can invest
proportionally with CML and thereby avoid dilution from further investment by CML Should MFF not
invest, each dollar invested by CML above US$1 million would result in MFF being diluted based on an
initial valuation of US$6 million for 100% of FPM.
CML has commitments from three parties to each invest US$1 million for a total of US$3 million for the
purchase the shares of FPM and for mine/mill repairs of El Limon. The three parties are James R. Martin
(“Martin”) as an individual; Para, a Canadian public company represented by Geoff Hampton; and SAEF
Exploration, Inc. (“SAEF”), a private Florida company represented by Alejandro Ochoa of Miami Florida.
These parties entered into a shareholder’s agreement with CML dated May 15, 2015 that calls for one share
of CML to be issued for each US$1,000 invested (the “Shareholders’ Agreement”). Pursuant to the
Shareholders’ Agreement, Para, Martin and SEAF are each required to contribute an aggregate total of
US$1,000,000 in consideration of respective 1/3 interests in CML. Para’s payments will be comprised of
one payment of US$400,000 (paid) and six contributions of US$100,000 no later than the first day of each
of the months commencing July 1, 2015 (paid) to December 1, 2015, inclusive.
When fully funded, pursuant to the Shareholders’ Agreement and subject to the completion of conditions of
closing and approval of the TSX Venture Exchange, Para will indirectly control between 33.3% and 45%
of CML which currently owns 61.202% of the El Limon Property. Note: CML’s percentage ownership of
the El Limon project may increase due to dilution of other shareholders of FPM, as described above.
BETA has verified the existence and good standing of Four Points Mining S.A.S.:with the Colombian
National Mining Agency; supporting documentation is included herein as Appendix C and D . BETA also
reviewed a legal opinion supporting the good standing of FPM by attorneys Norton Rose Fulbright
Colombia S.A.S. dated May 22, 2015.
1.3
GEOLOGY AND MINERALIZATION
In the area there are two zones of metamorphic rocks, one of feldespathic-aluminic gneisses and the other
associated to the Cajamarca Complex rocks. There are also granitic bodies associated to Cretaceous
magmatism.
Gneisses and schists occur in bundles which are elongated in an N-S course; they cover the entire area and
they are intruded into the NW by a stock of granodioritic composition and small dikes of porphyry
andesitic composition.
The area features Quaternary deposits; the largest ones are located on the creeks called Juan Vara, Sardina
and Culebra.
The main structure present in the area is the Otu Fault that crosses the area from North to South, the control
over the Juan Vara creek is relevant.
The known vein systems of the region extend up to 2-3 km in length with plunging high-grade ore shoots
central to the vein and surrounded by a lower grade halo. Vein dips are typically around 30-40°, and
occasionally sub-vertical.
The mineralization of El Limon mine is embedded in the quartz-feldespathic gneisses. The gold occurs in a
milky quartz vein, to the west of Otu Fault, its approximate course is N10E/40W, with average thickness of
September 15, 2015
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0.40 m. These features are very consistent in an extension of almost 400m on the course and 350m in the
dip direction.
Figure 1.3
Geologic Map of the Region (INGEOMINAS)
Typical production grades of the region range 8-12 g/t Au diluted. However, higher-grade mines also exist,
such as Quintana and El Limon mines at 15-20 g/t Au diluted. Vein widths are typically below 1m,
although both the hanging wall and footwall zones can contain appreciable economic mineralization within
the high-grade cores.
Structure is continuous, except for a series of reverse faults, with displacements ranging from 0.2 up to 40
and 60 meters, of which the main ones are El Limon and Leonel Faults, and to the north the 5N and the
Victoria faults.
Gold mineralization is related to sulphide contents, mainly pyrite, with smaller amounts of galena,
sphalerite and tetrahedrite, usually occurring as clear strips with a thickness ranging from 2 to 5 mm, and
they comprise from 7% to 12% in volume. Occasionally the strip structure is replaced by distributions of
sulfides which are more irregular or uneven.
Pyrite is the first most common and abundant ore, present in the form of aggregates of anhedral and
subhedral crystals.Tetrahedrite is the second most abundant ore; usually it occurs in anhedral crystals. Gold
is the most important metal; it appears in the form of grains in native state or electrum, normally
encapsulated with galena and in the form of inclusions in pyrite crystals, but not always. The particle size is
distributed in ranges from 1 to 120 microns, occasionally above 200 microns.
Gold – silver ratio is 1:1.2; the mineralization is normally contained within quartz veins, it is very rare to
find quantities of gold directly in the host rock. The tenor of gold appears to relate to the quantity of
sulphides, preferably related to the presence of sphalerite and galena.
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1.4
EXPLORATION CONCEPT AND STATUS
Underground development at the El Limon mine has continued nearly continuously for over 60 years. The
mine has been developed by room and pillar method on the upper levels, as the inclination of the vein has
not been sufficient to allow for stoping. The vein dip has increased with depth, allowing stoping activities.
The El Limon vein has been developed on 8 levels; production over the past 15 years has been from levels
5, 6, 7 and 8.
Underground workings are accessed via the mine portal (at level 0). Track extends from the mine mouth
to an incline drift (shaft), located about 150 meters south of the portal. This primary incline drift is 325
meters long at 50° dip, measuring 3m x 3m, and extends down from level 0 (portal level) to level 6. A
second incline shaft, located on level 6 about 300 meters north of the bottom of the primary incline, is
utilized to access levels 7 and 8.
Three stopes are currently under development for selective mining (resuing) to minimize dilution.
A ventilation raise is being renovated to allow for better air flow at the mining faces.
1.5
MINERAL PROCESSING
FPM has recently initiated an upgrade and renovation of the crushing plant and mill circuit at El Limon.
The existing mineral process at El Limon consists of two-stage crushing, milling, gravity separation,
flotation, cyanidation, merill-crowe precipitation and smelting. Amalgamation in small ball mills (cocos)
has historically been performed as well. The final product sold by FPM is gold/silver doré.
CML has operation control over the upgrades and renovation of the mineral processing facilities on behalf
of FPM. The planned upgrades include installation of equipment required to increase mill throughput to
200 tpd. The proposed mineral process has not changed. Amalgamation is eliminated.
A 2-stage crushing plant is operational on site. The crushing plant historically operated one shift per day,
recently at 10-12 tonnes per hour but with capacity of 20 tonnes per hour, providing sufficient crushed ore
to feed the mill. The crushing plant consists of a jaw crusher, cone crusher, vibrating screen and associated
belts and bins. A nominal 3/4” product is supplied to the mill. This crushing plant will be renovated and
upgraded to allow a smaller (-1/2”) nominal feed to the mill.
The existing mill is housed in a dedicated building. The 5’ x 10’ ball mill was originally a bar mill that was
retrofitted for balls. Rubber liners were installed in 2102. Ore is fed into the ball mill, from which the
oversize is separated via trommel for regrinding and the undersize is fed to 12” duplex jigs. The material
separated by the jigs contains the majority of the gold recovered by the mill. The product captured by the
jig is concentrated on the Wiffley table, and then run through a small ball mill with mercury. Gold is then
recovered by amalgamation. The pulp is collected in a pulp tank and pumped to a pair of hydrocyclones
The coarse reject from the hydrocyclone recirculates into the ball mill, while the undersize goes to a
conditioner tank in preparation for flotation. Flotation provides between 5-10% mass pull. The flotation
concentrate is pumped to a thickener, from which it goes to a 3’ x 4’ regrind mill and into a concentrate
tank from which it is pumped to a pair of hydrocyclones. The coarse reject is recirculated through the
regrind mill, while the fines are sent to agitation tanks (5 batch tanks operating in parallel) for cyanidation.
A Merrill Crowe precipitation circuit , which reportedly can handle 20 cubic meters of solution per day,
recovers to gold from solution.
The mineral processing plant recovered approximately 80% of the gold contained. The renovated plant is
expected to allow recoveries greater than 90%.
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1.6
CONCLUSIONS
The El Limon Project is a property of merit with a rich history of mining. The grade of gold ore that has
been extracted over the years is very high, at over 20 grams per tonne. Recent grades mines are
substantially lower, between 5-10 grams per tonne. This indicates that the known high grade zones have
been substantially depleted. Additional exploration will be required to delineate future mine resources and
reserves.
Mining operation can continue within the known confines of the El Limon vein for a limited number of
years. Determining the location of the vein on the south side of the Leonel fault will add substantial upside
to the project life.
The crushing plant and mill are in operational condition. The mill is operating in relatively poor condition
and needs some upgrades to bring it to good condition. The proposed upgrades and renovations reviewed
by BETA are substantial in scope and if completed should bring the mill to its full potential for gold
recovery of +90%. The use of mercury for amalgamation on site should be terminated.
The Project has potential environmental liabilities due to underground mining activities, past and present,
including:



Surface disturbance and degradation including deforestation.
Waste rock and tailings from mining operations.
Possible contamination of soil and water by mercury, cyanide, arsenic, acid drainage, heavy
metals and solids from mining operations.
These environmental liabilities have been addressed in the Environmental License and FPM is under
obligation to mitigate the above by reforestation and transport of old tailings to an approved location. FPM
is in compliance with the Environmental License. Additional work is mandated for monitoring of surface
and ground water.
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Precipitation data is presented in Table 5.2.
Table 5.2
Precipitation and Data
Period of Record Monthly Climate Summary
Source: worldweatheronline.com
5.3 LOCAL RESOURCES AND DEMOGRAPHICS
Population throughout the region is sparse outside of the principal towns and communities. Town
populations reported in the last census in 2005 are given below:
El Bagre
59,836
Zaragoza
32,916
Segovia
42,000
Remedios
17,658
Population statistics published by the town of Zaragoza in 2011 are as follows:
Inhabitants Urban Zone: 15,366
Inhabitants Rural Zone: 12,214
Total Inhabitants:
27,580
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3.0 RELIANCE ON OTHER EXPERTS
In compiling this report for the El Limon Property, BETA produced work of its own origin derived from
the work of others.
After reasonable due diligence, BETA has accepted and incorporated portions of this work and associated
reports, third party estimates and conclusions as part of the basis of this study as BETA deemed warranted.
The data, maps, and other records on which these estimates are based have been, after careful review,
accepted by BETA as true and accurate without independent verification.
BETA has assumed that Para, CML, FPM, and their third party consultants and engineers did not withhold
from BETA any facts or information.
BETA has verified the existence and good standing of Four Points Mining S.A.S. with the Colombian
National Mining Agency; supporting documentation is included herein as Appendix C and D. BETA also
reviewed a legal opinion supporting the good standing of FPM by attorneys Norton Rose Fulbright
Colombia S.A.S. dated May 22, 2015.
September 15, 2015
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4.0 PROPERTY LOCATION AND DESCRIPTION
4.1 PROPERTY LOCATION
The El Limon project is located in north-central Colombia, in the most northern part of the Colombian
Central Cordillera, approximately 100 miles northeast of Medellin and 200 miles northwest of Bogota, by
air. By road, the mine is 165 miles northeast of Medellin and 345 miles northwest of Bogota.
The
project is located in the northeast part of the Municipality of Zaragoza in the Deparment of Antioquia
(shown in red in Fig. 4.1). The nearest population center to the project is the town of Zaragoza, six
kilometers north of the project site (Fig. 4.2).
El Limon Mine General Location Map
El Limon Mine
Figure 4.1
General Location of El Limon Mine –
Within Department of Antioquia, Colombia
September 15, 2015
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4.2 PROPERTY DESCRIPTION
The El Limon claims historically covered a total area of approximately 321 hectares, including 129.6
hectares in RPP No 12011 and 191.1 hectares in the Concession contract #620 which is located west of the
currently exploited zone. (see Figure 4.3) Both titles are located in the Municipality of Zaragoza, in the
north of the Department of Antioquia.
Current documentation issued by the National Mining Agency (see Appendix A and B) indicates a total
project area of 277.5 hectares comprised of 86.4 hectares RPP 12011 and 191.1 hectares in Concession
#620. . FPM attorneys are investigating this discrepancy. The sales agreement between the vendor Bullet
and FPM shows the transfer of 129.6 hectares in RPP12011.
BETA notes that, as recently as 2011, RPP 12011 was comprised of three areas, as shown in Figure 4.3 by
FPM dated June 9 2014. In Figure 4.3, concession #620 is shown as area A, and RPP 12011 is shown as
areas B, C and D. All environmental studies and licenses are based on these areas. Nevertheless, the
current Certificate of Mining Registry from the National Mining Agency shows a total area of 86.4 hectares
comprised of two areas that cover the zones of current mining activity. FPM attorneys are investigating
this discrepancy. BETA notes that the all important areas for ongoing mining activities are covered by the
86.4 hectares shown in areas B and C.
Figure 4.2
Land Tenements - El Limon – Concession No 620 and RPP 12011 to the west
El Limon Mine, within RPP 12011, is located 6 kilometers (4 miles) from the suburban area of Zaragoza, to
the west of the unpaved road that joints the towns of Zaragoza and Segovia, as shown in the aerial view
below.
Figure 4.3 Satellite View of El Limon Property Area
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Figure 4.4 El Limon Concession Map
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Figure 8.1
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9.0 EXPLORATION
Para, via CML, only recently acquired the project. There has been no relevant exploration work performed
on behalf of the issuer.
Para’s geologist Paulo J. Andrade, PhD Geologist, MAIG; visited the site February 5-6, 2015 and took
several grab samples from underground workings at the El Limon mine for independent analysis.
The results confirm that significant grades of gold and silver exist in site. BETA notes that the samples are
not representative of the mineralization as a whole. Results as presented by Para are shown in Table 9.1
and Table 9.2 below.
Sample ID
PBRCO-001
PBRCO-002
PBRCO-003
PBRCO-004
PBRCO-005
Table 9.1
Independent Samples Taken by Para
Location
Description
N Front-Level 7
Quartz vein; Py infilling fractures
N Front-Level 7
Altered schist with disseminated Py
Duct-Level 06
Chamber-Level 7
Quartz vein; abundant Py>ZnS>PbS
Duct-Level 06
Table 9.2
Assay Results from Independent Samples Taken by Para
Sample ID
PBRCO-001
PBRCO-002
PBRCO-003
PBRCO-004
PBRCO-005
Au (g/t) Ag (ppm) Cu (ppm) Zn (ppm) Pb (ppm)
13.67
11.80
31
177
572
0.01
0.70
55
111
11
3.44
3.90
53
156
48
124.70
127.50
29
17984
12043
0.15
0.40
16
12
6
September 15, 2015
Page 47
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Figure 4.5
El Limon Concessions with Topography
September 15, 2015
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4.2.1 APPLICABLE LEGAL FRAMEWORK
The exploitation of gold ore from the El Limon mine is subject to the mining and environmental standards
set forth by the national government through its laws, decrees, resolutions etc. which are applicable as the
mining guides and environmental terms of reference for the development of this activity.
Mining in Colombia is governed by the Mining Law 685 of 2001. It was modified by Mining Law 1382 of
9 February 2010 but this was annulled on 11 May 2011 and expired in 2013 after a two-year deadline to
pass a new law lapsed, and Mining Law 685 of 2001 regained full force and effect. In addition, the new
National Development Plan (Law 1450 of 2011) included some of the changes of the annulled Law 1382,
specifically article 108 regarding the extension of exploration periods. In lieu of a new mining law, a series
of decrees and resolutions were issued in 2013 to regulate mining as follows:





Decree 935 (9 May 2013) which regulates the free areas, proposal evaluation, estimation of
economical investment and rejection of proposals.
Decree 943 (14 May 2013) which regulates the extensions for stages and concession contracts.
Decree 1300 (21 June 2013) which defines how to support the execution of exploration works
using an estimate for economical investment;
Resolution 428 (23 June 2013) which adopts the terms of reference, mining environmental
guidelines and the minimum exploration program as elements to evaluate the technical and
economic contents of the proposal.
Resolution 551 (9 August 2013) regulates the remaining financial capacity.
All mineral resources belong to the state and can be explored and exploited by means of concession
contracts granted by the state. The mining authority is the Ministry of Mines and Energy, and mining is
regulated by the new National Mining Agency (Agencia Nacional Minería or ANM). There is a single type
of concession contract covering exploration, construction and mining which is valid for 30 years and can be
extended for another 30 years. Concession applications resumed on 2 July 2013 after a suspension since 3
February 2011 to clear a backlog of applications.
4.3 MINING AND ENVIRONMENTAL LEGISLATION
The Mining Law 685 of 2001 requires an annual Environmental-Mining Bond to be posted for each
concession contract. Four Points has done this for the concession contract.
Exploration activities require an Environmental Management Plan (Plan de Manejo Ambiental or PMA),
which has been approved for the concession contract.
At the end of the Exploration Phase an Environmental Impact Study (EIA) has to be presented if the
concession is to proceed to the Construction Phase. This must be approved and an Environmental License
issued before the Exploitation Phase can begin, subject to a PMA. In addition, exploitation requires a
Permit for Springs, Forest Use Permit, Certificate of Vehicular Emissions, Emissions Permit, and River
Course Occupation Permit.
The El Limon mine operates under Environmental License issued in Resolution #130PZ-1402-2703 dated
February 27, 2014. MFP is in compliance with the requirements of the Environmental License. The most
recent visit by Mining Agency officials was August 12, 2015. The mine has explosives permits and stores
its explosives on site.
Under Colombian mining and environmental laws, companies are responsible for any environmental
remediation and any other environmental liabilities based on actions or omissions occurring from and after
the entry into force and effect of the relevant concession contract, even if such actions or omissions
occurred at a time when a third party was the owner of the relevant mining title. However, companies are
not responsible for any such remediation or liabilities based on actions or omissions occurring before the
entry into force and effect of the relevant concession contract, from historical mining by previous owners
September 15, 2015
Page 21
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and operators, or based on the actions or omissions of third parties who carry out activities outside of the
mining title (such as illegal miners).


































Law 685 of 2001 Mining Code, which regulates the legal relations of the State with the individuals
in all its phases with respect to the handling of minerals that are found in soil or subsoil, either
national property or private property.
According to the law of December 99 1993 title 8 which deals with the environmental license.
Decree 2150 of 1995 which regulates the processing of the environmental license,
April 1220 Decree 2005, determines the obligation to submit an environmental management plan
(EMP) for its evaluation and establishment.
Resolution 18-1053 2001; Min Mines delegated tasks to Minercol Ltda.
Resolution 18-1130 2001, except in the functions of Minercol Ltda.
Resolution 18-1145 2001 regulates the functions of processing and celebration of concession
contracts governors and mayors.
Resolution 18-4568 2001 modifies the Resolution 18-1145 2001
Resolution 18-1194 2001 exception in the functions delegated to the Governor of Antioquia
Department.
Resolution 18-1320 2001 orders for the cancellation of the registration of the inputs into the
National Mining Registry.
Resolution 18-1847 2001 Form for the legalization of mining operations without title registered in
the National Mining Registry.
Resolution 0034 of 2001 proposal form Single Concession Contract.
Decree 1335 of 1987, Security in underground mining: regulation of safety in the work of
underground mining.
April 1220 Decree of 2005
Decree 500 of 2006
Law 21 of 1991. Approves the Convention 169 on indigenous and tribal peoples in independent
countries. Adopted by the ILO in 1989.
Law 70 of 1993. Protection of the cultural identity and rights of the black communities in
Colombia.
Decree 1745 of 1995. Land titling of black communities.
Decree 1277 of 1996. Areas of campesino reserves.
Law 2811 of 1974 Part XII. With respect to the resources in the landscape and its protection
Decree 877 of 1976. Uses of the forest resource.
Law 84 of 1989. Adopts the national statute for the protection of animals.
Decree 2811 of 1974 part VII. The agricultural soil and the non-agricultural uses of the land.
Law 388 of 1997, Art. 33. Territorial Management. Regulates the uses of the soil.
Decree 2811 of 1974. Code of natural resources and the environment. Art. 33.192 , 193 noise
control in infrastructure works.
Law 09 of 1979. National health Code
Decree 02 of 1982. Regulates title I of the Act and the decree 09-79 2811-74. Art. 74 Prohibitions
and restrictions on the discharge of material particles, gases and vapors into the atmosphere. Art.
75 Prevention of air pollution.
Decree 948 of 1995. Standards for the protection and control of air quality.
Resolution 8321 of 1983. Noise.
Resolution 619 of 1997. Atmospheric emissions permits for stationary sources.
Decree 2811 of 1974, book II part III. Art. 77 To 78 Classification of waters. Art. 80 To 85:
domain of the waters and channels. Art. 86 To 89: the right to use the water. Art.134 to 138:
Pollution prevention and control. Art. 149: Groundwater. Art.155: Administration of waters.
Decree 1449 of 1977. Provisions on conservation and protection of waters, forests, terrestrial and
aquatic flora.
Decree 1541 of 1978. Inland Waters: Art. 44 To 53 characteristics of concessions, Art. 54 To 66,
Art. 87 To 97: Occupation of channels, Art. 104 To 106: Occupation of channels and permission
September 15, 2015
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

of occupation of channels, Art. 211 To 219: Control of dumping, Art. 220 To 224: dumping by
household and municipal use, Art. 226 To 230 Dumping for industrial use, Art. 231:
Decree 1594 of 1984. Rules of spills of liquid waste. Art. 37 To 50 quality criteria for water
Decree 901 of 1997. Remuneration rates by dumping liquids point to bodies of water.
4.4 MINING RESTRICTIONS:
Colombia has two basic types of restriction over the mining process, those that disallow mining under any
circumstances and those that require formal process to resolve:
Mining Disallowed:
 National parks/reserves (Does not impact El Limon concessions)
 Paramo law - Prohibits mining above 3,200m elevation (Does not impact El Limon concessions)
Require additional environmental submissions:



4.5
Forestry reserve (Law 2) Requires a formal study of the defined project area from the reserve
(Does not impact El Limon concessions)
Indigenous communities - Requires formal Prior Consultation Process with the respective
community (A community zone is located to the far east of the Zaragoza district. This zone does
not impact upon the El Limon concessions)
Black communities - Requires formal Prior Consultation Process with the respective community
(A community zone is located to west of the project, but does not impact El Limon concessions)
LEGAL ACCESS AND SURFACE RIGHTS
FPM has legal access and full surface rights to the 6.855 hectares within the fenced borders of the mine.
These rights have been explicitly granted to FPM by court decree, and accordingly FPM is obligated to pay
a fee determined by the court to the owner for use of the land.
In Colombia, as in most of South America, mineral rights are independent from surface rights. The owner
of the surface does not own the mineral rights, or vice versa. However, Colombian law provides to the
owner of the mineral rights the right to use the surface associated with the mineral rights for the purposes of
carrying out mining exploration and exploitation activities. Under applicable Colombian mining statutes,
this includes the construction and installation of all works and services proper for exploration, construction,
assembly, extraction, gathering and benefit of the mineral rights, as well as the right to exercise other
easements. The owner of mineral rights has also the right to establish its own transportation system, and
appropriate means for the access of persons and to load, transport and unload minerals and equipment
related to the mining operations.
Applicable regulations contemplate that the owner of mining rights will negotiate with the surface rights
owner for an easement or other agreement for the use of the surface. However, if those parties cannot reach
agreement and the owner does not grant access to the land, the Colombian Mining Code, Law 685 of 2001,
and the Code of Civil Procedure (Art 16, numeral 9 and Art 408, numeral 1) provide the mineral rights
owner an expedited legal procedure to gain compulsory access. The Mining Law provides the mining
servitudes and the possibility of expropriation of the surface, in case it is required, since the mining activity
is considered to be in the public interest.
4.6
WATER RIGHTS
Exploration activities require a Surficial Water Concession if a natural resource is required to be used,
especially for drilling. BETA confirmed that Surficial Water Permits granted for the project by
Corantioquia are currently in good standing.
September 15, 2015
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4.7
SEISMIC
El Limon lies in the low-intermediate risk zone (middle volcanic zone) for seismic hazard. Ingeominas
(2011) mapping shows the El Limon project within an band of Aa acceleration values of 0.1 to 0.15
(Intermediate).
Effective peak acceleration (“Aa) corresponds to horizontal accelerations of the
earthquake design standards referred to in Colombian Earthquake Resistant Design and Construction
(NSR-98) as a percentage of the acceleration of the Earth’s gravity (g=980 cm/s). The parameter Aa is
used to determine seismic design loads required by the regulation of Earthquake Resistant Structures.
4.8
OTHER RISKS
The author is not aware of any other significant factors and risks, other than those described above, that
may affect access, title, or the right or the ability to perform work on the property.
4.9
ROYALTIES
The property is subject to the following royalties:
A 4% royalty on gold and silver sales is paid to the government of Colombia.
A 0.4% royalty is paid to the state.
A 3% NSR was granted to RRR, beginning the earlier of 9 months after the closing date or when
production of at least 100 tpd are achieved for 30 consecutive days. This royalty is capped at US$2 million
and is only paid on ore from existing FPM concessions. A second royalty of 0.5% was granted to RRR
following the payment in full of the first royalty. This second royalty is capped at US$1 million and is only
paid on ore from existing FPM concessions.
September 15, 2015
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5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES,
INFRASTRUCTURE AND PHYSIOGRAPHY
5.1 ACCESSIBILITY
The El Limon Property is accessible by automobile via paved road from Medellin (4 hours) or by local
scheduled flights from Medellin to El Bagre or Caucasia (Zaragoza district); and to Otú (Segovia district).
Flights are 25--‐50 minutes, depending on the type of aircraft. BETA’s flight from Medellín-El Bagre took
40 minutes and then the overland route between El Bagre and El Limon took 90 minutes, passing by the
municipal seat Zaragoza. Similarly there are flights from Medellín to Caucasia, two hours by road from the
mine site.
A 4WD vehicle is recommended for access throughout the region. All roads North of Segovia (to
Zaragoza) are unpaved and can often be in poor condition due to the high rainfall of the region. A central
unpaved road accesses the Zaragoza district, commencing at the regional town of Caucasia, to the north,
and running north‐south from Zaragoza through to Segovia. It was originally constructed for the transport
of mining equipment to Frontino Gold Mines from the Nechi river at Zaragoza. Power supply lines also
run alongside the main road. The Segovia‐Zaragoza road has been approved for upgrade to a paved road,
with work scheduled to begin in 2015.
5.2 CLIMATE
The project is amenable to year-round operation. Temperatures range between 23‐33˚C, and the mine gets
about 4.3 meters of rainfall per year.
The average monthly temperature (lowest and highest), are presented in table 5.1.
Table 5.1
Average Monthly Temperature
Months
Temperature
Normal
Warmest
Coldest
January
28.5°C
32.7°C
23.5°C
February
28.7°C
32.9°C
23.6°C
March
28.5°C
32.6°C
23.7°C
April
28.0°C
31.9°C
23.4°C
May
27.8°C
32.0°C
23.3°C
June
27.9°C
32.0°C
23.2°C
July
28.2°C
32.6°C
23.1°C
August
28.0°C
32.4°C
23.0°C
September
27.7°C
31.8°C
22.7°C
October
27.1°C
31.0°C
22.6°C
November
27.3°C
31.1°C
23.0°C
December
27.9°C
31.9°C
23.4°C
Source: Barrancabermeja weather station: 134 m.a.s.l., 129.0 km away from Zaragoza
September 15, 2015
Page 25
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Precipitation data is presented in Table 5.2.
Table 5.2
Precipitation and Data
Period of Record Monthly Climate Summary
Source: worldweatheronline.com
5.3 LOCAL RESOURCES AND DEMOGRAPHICS
Population throughout the region is sparse outside of the principal towns and communities. Town
populations reported in the last census in 2005 are given below:
El Bagre
59,836
Zaragoza
32,916
Segovia
42,000
Remedios
17,658
Population statistics published by the town of Zaragoza in 2011 are as follows:
Inhabitants Urban Zone: 15,366
Inhabitants Rural Zone: 12,214
Total Inhabitants:
27,580
September 15, 2015
Page 26
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Table 5.3
Population distribution by age
Age distribution
>1
Age Ranges
Year
Total Age
Percentage
0.00
1-4
5-14
15-44
45-59
> 60
4,810
6,818
12,602
1,436
1,914
17.44
24.72
45.69
5.21
6.94
Population Distribution by sex:
Men:
13,770
Women: 13,810
The literacy rate is 75.8% according to figures presented by the DANE census 2005.
The ethnographic composition of the municipality is:
Mestizos & Whites (54.5%)
Afro-Colombians (38.8%)
Indigenous (6.7%)
5.4 PHYSIOGRAPHY
The Zaragoza district sits between 50180 meters above sea level (“masl”), with the El Limon mine at 70
masl. The relief is rolling hills with valleys along drainage plains.
The Property area is blanketed with lowland evergreen broadleaf rainforest. Tall, broad leaved evergreens
are the dominant tree type, forming a high, leafy canopy over the forest floor. The undergrowth is often
restricted by the lack of sunlight at ground level, and generally consists of shade-tolerant shrubs, herbs,
ferns, and small trees.
The area is highly forested with principal clearings made by illegal alluvial mining operations, logging, and
cattle ranching. Across the district vegetation coverage is principally secondary forest with cattle ranching.
September 15, 2015
Page 27
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Figure 5-1
Map of Surface Installations – El Limon Mine
September 15, 2015
Page 28
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6.0 HISTORY
The prior ownership and exploration history for the El Limon Property follow.
Table 6.1: General History of El Limon Mine
1938
1940-1946
1947
1947-1953
1958
1961
1962
1963-1975
1975
1986
1987
1988-89
1990
1991
1992-1996
1996
Nepomuceno Mira found the vein, called it El Limon, installed a mill, starting the
exploitation on a small scale.
Sold to Otto Feckler who worked the oxidized zones through 1946
Review by N.A. Timmons Corporation
H. von Staufen bought the mine, improved the mill and continued work until
forced to close in 1953, by lack of working capital.
Leased to the mining company Pacific Chocó S.A. , a subsidiary of South
American Gold and Platinum Company of New York. Furthered exploration
through underground galleries and five diamond drill holes
Reports indicate mineralization showing a grade of 39 grams of gold per tonne and
a 1:1 gold:silver ratio
Pacific Chocó S.A. gave up lease
Operated by H. von Staufen until his death in 1975
Grupo Minero Ltda. of Medellín and Oro Norte S.O.M. obtain authorization from
Ministry of Mines to exploit the deposit
Sold to Greenstone Resources Ltd of Canada who drilled a total of 1573 m from
October 1988 to February 1989. This drilling intersected the vein from level 2 up
to 5, and demonstrated the persistence of the vein at depth.
Greenstone protected the mining title via Reconocimiento de Propiedad Privada,
(recognition of private property), MMP12, which was granted to the company by
Resolution 2781 of 2 October 1987.
The initial development of the underground mine was in 1988 and 1989 through a
contract with Geominas Ltda. In September 1989 the decision was made by
Oronorte S. O. M to put the project into production. The company built a plant to
process 100 tonnes per day, with production of gold concentrates of 500- 800 g/T
Au, with equal quantity of silver content, and some Pb, Cu, and Zn, which was to
be exported to Japan.
After a 3-month delay due to social unrest, the mine was officially opened on
November 11, 1990. Production rate was planned to be 30,000 tonnes per year,
processing 17g/tonne gold ore with expected monthly production of 1,000-1,500
ounces.
A trade union of workers was soon formed, causing a cessation of activity at the
end of 1991. To resolve the conflict, the company helped create the “Cooperative
Workers of Zaragoza Associated” or "Coomizar".
In April 1992, the mining company Oronorte S.A. contracted the exploitation of
the mine with the cooperative Coomizar. The mine continued to operate through
1996 albeit with labor difficulties
Fisher Watt Gold Inc. assumed control of the mining company Oronorte S. A.
through an exchange of properties with Greenstone Resources Ltd. A cyanidation
circuit was added, and gold production on site using amalgamation initiated.
Production peaked in 1997. Based upon drilling results and underground
development to mid-1997, an independent audit of the EL Limón resource by
Watts, Griffis and McOuat, Lakewood, Colorado, indicated reserves of 156,674 t
@ 15 g Au/t (+75,000 Oz Au). BETA has not reviewed this study and cannot
comment regarding the key assumptions, parameters and methods used to prepare
the historical estimate. This area was subsequently mined and therefore the
historical estimate cannot be updated to include current mineral resources or
mineral reserves. The issuer is not treating the historical estimate as current
mineral resources or mineral reserves.
September 15, 2015
Page 29
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Table 6.2
Tonnes Crushed 1990-2000
YR
TONS CRUSHED
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2,040
24,567
17,302
26,961
23,011
22,563
23,088
29,547
18,918
8,781
2,335
The production figures from various SEC filings are given below:
Table 6.3
El Limon Historical Production 1990-1997
El Limon Mine Historical Production
Gold
Avg.
Tonnes
Year
Produced Recovery
Milled
(T. Oz)
(%)
Grade
(g/t)
Calendar
Calendar
Calendar
Calendar
1990*
1991
1992
1993
2,040
24,567
17,302
26,961
365
10,241
7,679
9,990
90%
90%
90%
90%
6.19
14.41
15.34
12.80
Calendar
1994
23,011
7,510
91%
11.10
Calendar
1995
23,563
8,603
92%
12.89
FY H1
FY H2
1996
1996
12,224
10,467
3,562
4,817
10.30
15.90
FY H1
1997
11,904
5,735
17.50
149,999
23,077
1,923
58,137
8,944
745
13.78
Total (6.5 years)
Avg / year (6.5 years)
Avg / month
* Two months' operation
2000-2005
2007
2009
2011
Table 6.4
General History El Limon Mine 2000-2011
In 2000, Bullet Holding acquired Minera Oronorte SA and operated the mine until
December 2005, the date on which the Superintendencia de Sociedades decreed
the compulsory winding-up of the Colombian company Oronorte S.A.
In February of 2007, the Superintendencia de Sociedades auctioned off the assets
of Oronorte S. A., among which were the mining titles. Continental Gold Ltda.
acquired the mineral rights and part of the infrastructure that remained after the
process.
Mineras Four Points SAS acquires rights to Oronorte SA for $150,000,000
(Colombian Pesos) on March 31, 2009 and resumes operations
Reorganization of Mineras Four Points SAS. Red Rock purchases 25,001 shares
of Mineras Four Points SA giving Red Rock 50.002% control of Four Points
September 15, 2015
Page 30
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HISTORICAL PRODUCTION
Figure 6.1
Graph of Gold Sold (oz) – El Limon Mine 2012-2014
Four Points Mining SAS (50.002% owned by Red Rock) reported gold sales of 718 oz in the first quarter of
2014. This corresponds to sales over the same period last year (Q1 2013) of 363 oz, a 97.7% increase year
on year. Q1 2014 sales of 718 oz fell from Q4 2013 figures of 909 oz, a decline of 21%, however in line
with the two year quarterly average of 732 oz. As of 31 March 2014 total gold sales for FY14 sat at 2,607 oz as compared to 1,723 oz at this point in
FY13. The average realized gold price was $1,259/oz during the quarter.
Table 6.5
Gold Sales by Quarter – FY 2014
FY 14
Q1
Q2
Q3
Month
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Gold (oz)
343.36
292.76
343.99
276.64
226.57
405.97
230.12
259.85
228.14
September 15, 2015
Page 31
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A detailed report of gold bars produced by the operation is shown in the following tables. This report
indicates which bars were produced by amalgamation versus cyanidation.
Table 6.6
Four Points Mining Gold Production Detail 2013-2014
Table 6.7
Four Points Mining Gold Production Detail 2014-2015
September 15, 2015
Page 32
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September 15, 2015
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HISTORICAL RESERVE STATEMENTS – DECEMBER 2012
The most recent reserve statement produced by the mine showed 30,058 tonnes of ore grading 11.75 g/T
undiluted (10.1 g/T diluted), containing approximately 10,000 ounces of gold. Details of the estimation are
presented in the following figures.
A significant portion of this historical reserve has been mined and as such the following is relevant only for
historical information purposes.
BETA’s qualified person has not done sufficient work to classify this historical estimate as current mineral
resources or mineral reserves; and the issuer is not treating the historical estimate as current mineral
resources or mineral reserves.
The historical estimates were produced by polygonal estimation methods. There was no distinction or
categorization as to proven or probable.
Additional exploration and development, or drilling, will be required in order to produce a current estimate
of minable reserves.
Table 6.8 2012
Historical Estimation of Minable Reserves
September 15, 2015
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βETA
Figure 6.2
Figure 6.3
September 15, 2015
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Figure 6.4
September 15, 2015
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7.0 GEOLOGICAL SETTING AND MINERALIZATION
7.1
REGIONAL GEOLOGY
The project area features multiple rock types, with ages ranging from the Paleozoic to the Quaternary.
Metamorphic rocks are those covering most of the area; igneous rocks are also found to the E and W and
Quaternary deposits associated with the rivers that flow through the region.
Figure 7.1
Regional Geologic Map
7.1.1. Paleozoic
Paleozoic units in the region are comprised of two packages of metamorphic rocks that cover most of the
area: feldespathic-aluminic gneisses; and rocks of the Cajamarca Complex, which are distinguished by their
degree of metamorphism.
7.1.1.1. Feldespathic-aluminic Gneisses
North-South elongated bodies, located to the West of the Otu fault; the main body presents tectonic contact
with green schists. The predominant rock is medium to fine grain, its color ranges from middle to clear
grey to the south of El Limon Mine and from brown to dark in the north of the mined workings of levels 5,
6 and 7; some sections inside the mine present gneissose structure with good foliation defined by sheets
September 15, 2015
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βETA
whose colors range from white to beige, quartz, plagioclase and dark films with high content of biotite,
with thicknesses from 2 to 4 mm
Figure 7.2
Regional Gold Occurrences
7.1.1.2. Cajamarca Complex.
Cajamarca Complex is a metamorphic pack made up of quartz-sericitic schists, green schists, phylilites,
quartzites, and marbles and metasedimentites. The contacts of this complex with adjacent rocks are varied,
generally faulted, although there are protrusions featuring considerable extension.
Contacts of this complex with adjacent rocks are varied, generally faulted, although there are considerable
intrusions featuring extension.
The main lithological components of the Complex are:
September 15, 2015
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βETA
Quartz-sericitic schists: It is the lithological type being more abundant and characteristic of the complex,
includes both the ordinary sericitic schists and their mineralogical (quartzites and schists) and textural
transitions (phyllites). They are black rocks to grey silver, fine to very fine-grained, laminated and foliated,
with compositional stripping and veins featuring milky quartz of metamorphic segregation.
Quartzites: They appear intercalated and interdigitated with quartz-sericitic schists, showing transition to
them. Massive rock mainly made up by quartz and small amounts of biotite and feldspar.
Actinolitic-chloritic schists: rocks ranging from massive to schistose featuring green color and defined
foliation by amphibole and chlorite parallel to subparallel orientation. They feature compositional stripping
between albite and chlorite layers; sometimes they show lenticular texture by "augen" of quartz and
plagioclase and its stratification is accordingly with quartz-sericitic schists.
Figure 7.3
Geologic Map of the Region (INGEOMINAS)
7.1.2. Mesozoic
In the region there are igneous bodies associated with Cretaceous magmatism.
To the South and slightly to the SW of Zaragoza in the Limon Village there’s a body of intrusive
composition (granodiorite), which is North-South elongated, to the South it contacts quartz-feldespathic
schists, which should form a halo of contact. It is an Exploration Target.
Contact towards eastern edge is uncertain, since the sedimentary cover wraps it up mostly and it cannot be
observed; due to weathering, it is assumed that it has intruded into the gneiss and faulting has taken place
upon said intrusion.
7.1.3. Cenozoic
The Cenozoic period formations are commonly disposed not only in river and stream banks, but also in
small higher strata where there is substantial erosion. They are made up by 60-70% of gravel and 30-40%
of sands; their edges are mostly rounded quartz, the average diameter measures 05-0.10 m and in lesser
September 15, 2015
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βETA
extent fragments of igneous and metamorphic rocks. Most of alluvium and colluvial-alluvial deposits of
valleys high belong to the Holocene; however, in some places, similar deposits are cut by current streams
and they could belong to the Pleistocene.
7.2
LOCAL GEOLOGY
This section pertains to rocks covering the surroundings of El Limon Mine.
In the area there are two zones of metamorphic rocks, one of feldespathic-aluminic gneisses and the other
associated to the Cajamarca Complex rocks. There are also granitic bodies associated to Cretaceous
magmatism.
Gneisses and schists occur in bundles which are elongated in an N-S course; they cover the entire area and
they are intruded into the NW by a stock of granodioritic composition and small dikes of porphyry
andesitic composition
.
The area features Quaternary deposits; the largest ones are located on the creeks called Juan Vara, Sardina
and Culebra.The main structure present in the area is the Otu Fault that crosses the area from North to
South, the control over the Juan Vara creek is relevant.
7.2.1. Feldespathic-aluminic Quartz Gneiss (Pe)
Feldespathic-aluminic gneisses emerge from North to South in the area; to the west of the green schist their
contact is faulty and, to the north they are intruded by a stock of granodioritic composition. There are
lenses of quartzites and amphibolite.
It is a white to dark brown rock, its grain size ranges from medium to thick and its texture is gneissic, made
up by quartz, plagioclase, feldspar, muscovite, biotite and chlorite; micas mark the orientation in the
gneisses; quartz occurs in discordant veins with the orientation of the other minerals; rocks closest to the
veins have pyrite.
The best outcrops of this rock are located in Shaft 6.0 of El Limon Mine.
7.2.2. Cajamarca Complex (Pes)
The main lithological components of the Complex are:
Quartz-sericitic schists: It is the lithological type being more abundant and characteristic of the complex,
includes both the ordinary sericitic schists and their mineralogical (quartzites and schists) and textural
transitions (phyllites). They are black rocks to grey silver, fine to very fine-grained, laminated and foliated,
with compositional stripping and veins featuring milky quartz of metamorphic segregation.
Quartzites are related to Cajamarca Complex and they are associated to feldespathic-aluminic gneisses in
the form of lenses, they are characteristic for being massive rocks, greenish-grey color, and their size is
very fine and their texture is saccharoidal. They are made up by quartz and some sulphides (pyrite), in
quartz veins. The best outcrops are found in El Limon Mine (It is a topic deserving discussion; a
petrographic analysis is suggested for said purpose).
7.2.3. El Limon Granodiorite or Diorite Quartz (Jdc).
A body of intrusive composition (granodiorite) is found, which is N-S elongated; to the west it contacts
feldespathic-quartz schists, which should form a halo of contact since it is a new exploration Target.
It is a small stock that outcrops about 700 m to the west of El Limon Village and to the NW of El Limon
Mine, intruding into gneissic rocks. The best outcrops are found to the NW in tributary streams of the
Culebra Creek.
7.2.4. Porphyry andesitic (KAn).
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βETA
It is a rock featuring porphyritic texture, light green matrix and very fine grain size; the phenocrystals are
white, with cleavage, the mineralogical composition is mainly plagioclase and feldspar in phenocrystals.
Andesitic porphyry bodies emerge on both sides of Juan Vara Fault; occuring in the form of dikes of small
length, they cut gneisses and green schists, on the tributary streams of the La Sardina and El Siete creeks.
They are non-cartographiable to the map scale but they are mentioned because inside the mine, on south
level 4 and 5 a 2 meter wide andesitic body was located in the N-S course.
7.2.5. Quaternary Deposits (Qal).
El Limon mine and its surroundings have many Quaternary deposits associated to creeks that cross the
area; there are two types of deposits: alluvial and alluvial terraces of ancient courses of these creeks; the
latter have special interest in gold mining since large quantities of alluvial gold are found on their
conglomeratic foundations.
Figure 7.4
Geologic Map and Cross Section Through El Limon Mine
September 15, 2015
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7.3
VEIN CHARACTERISTICS
The known vein systems of the region extend up to 2-3 km in length with plunging high-grade ore shoots
central to the vein and surrounded by a lower grade halo. Vein dips are typically around 30-40°, and
occasionally sub-vertical.
Typical production grades of the region range 8-12 g/t Au diluted. However, higher-grade mines also exist,
such as Quintana and El Limon mines at 15-20 g/t Au diluted.
Vein widths are typically below 1m, although both the hanging wall and footwall zones can contain
appreciable economic mineralization within the high-grade cores.
The mineralization of El Limon mine is embedded in the previously described quartz-feldespathic gneisses.
The gold occurs in a milky quartz vein, to the west of Otu Fault, its approximate course is N10E/40W, with
average thickness of 0.40 m. These features are very consistent in an extension of almost 400m on the
course and 350m in the dip direction.
As to structure, it is continuous, except for a series of reverse faults, with displacements ranging from 0.2
up to 40 and 60 meters, of which the main ones are El Limon and Leonel Faults, to the north the 5N and the
Victoria faults
7.4
MINERALIZATION
Gold mineralization is related to sulphide contents, mainly pyrite, with smaller amounts of galena,
sphalerite and tetrahedrite, usually occurring as clear strips with a thickness ranging from 2 to 5 mm, and
they comprise from 7% to 12% in volume. Occasionally the strip structure is replaced by distributions of
sulfides which are more irregular or uneven.
Pyrite is the first most common and abundant ore, present in the form of aggregates of anhedral and
subhedral crystals. Sizes vary from 0.5 μm corresponding to small fragments caused by intense fracturing
up to centimeters.
Tetrahedrite is the second most abundant ore; usually it occurs in anhedral crystals. Galena is a not so
abundant as pyrite, usually it appears in the form of anhedral crystals in Intergrowth with gold, but it is not
always included in pyrite crystals.
Gold is the most important metal; it appears in the form of grains in native state or electrum, normally
encapsulated with galena and in the form of inclusions in pyrite crystals, but not always. The particle size is
distributed in ranges from 1 to 120 microns, occasionally above 200 microns. (Lopez 2004).
Gold – silver ratio is 1:1.2; the mineralization is normally contained within quartz veins, it is very rare to
find quantities of gold directly in the host rock. The tenor of gold appears to relate to the quantity of
sulphides, preferably related to the presence of sphalerite and galena.
In many cases the veins are mineralized segments and may be relatively discontinuous. Potentially
economic mineralization is often related to discrete outbreaks of high quality (more than tens to hundreds
of meters along the guide) and then just lower quality ore zones. In general, these minerals represent a
relatively small proportion of the total of meters and mineralized tonnage, but they may contain more than
75% of the gold content, and thickness from 0.1m up to 0.8m.
The vein’s mineralogical composition is simple since the ore is composed of pyrite as the more abundant
mineral, with smaller quantities of galena, sphalerite, and tetrahedrite; usually they occur in clear strips that
run parallel to semi parallel to the course of the vein.
September 15, 2015
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βETA
By sectors, these strips are replaced by a presentation in "patches". Gold appears intergrowth with galena or
in the form of inclusions in pyrite crystals and from little to moderate presence in "hooks" from 1 to 120
microns. The gold-silver ratio is 1:1.2, normally being the tenor of 450grAu/Mt.; the major tenors of gold
are associated to the presence of galena and sphalerite.
The presence of three mineralization stages that have acted in the quartz vein can be established from a
macroscopic analysis and experience:
1. First stage: injection of macroscopic pyrite crystals which do not carry gold;
2. Second stage: injection of sulfides accompanying fine pyrite, chalcopyrite, sphalerite, galena and gold;
3. Third stage: intense dynamic deformation represented by an association of tetrahedrite-pyrite sphalerite-gold, indicating the presence of tetrahedrite, possibly enrichment caused in addition to gold.
7.4.1
Age Of Mineralization
Embedded quartz gold vein is produced at high temperature; metamorphic rocks (high-temperature facies
and amphibolites) and from Precambrian age are very close to 450 Million years. The presence of a dyke of
andesite with EW course and predominant "pre-vein" age would indicate a Post-Triassic age for the events
of quartz vein mineralization.
7.5
STRUCTURAL CONFIGURATION
The area has three types of geological structures, the first corresponds to the foliation and schistosity of
metamorphic rocks, the second is defined by geological faults that cross the sector and, the third is related
to the jointing of lithological units.
7.5.1 Foliation – Schistocity:
The predominant direction varies from N-S to N25° W dipping on average 60° W, except in the phyllites,
in which the direction of dip is to the E.
7.5.2 Faults:
The main fault is Otu which course is N20° - 35° W/70°, Vertical; the geomorphic expression of the fault is
in aligned valleys of the Pocune River, and hills in the manner of tectonic hooks showing sinistral behavior.
The most important faults related to El Limon Mine are presented in the level 5, 6 and 7 along with the
crease area and some outstanding structural traits. These faults cut the vein, segment it and move it, and
isolate it in independent tabular bodies.
Among these we have El Limon Fault, a structure with N20°W course, dipping 65° east; it moves the vein
32 meters in the dip course. A second fault of this type is the Leonel fault; its course is NNE and it has a
78° W pseudo-vertical dipping with slight variation to the South, it moves the vein about 35 meters in the
dip course. Such fault features a combined motion, with sliding in the direction of the dextral rhumb,
displacing El Limon fault approximately 85 meters. The third fault is the Victoria fault which features a
NNE reverse course and dips 75° W; it displaces the vein approximately 60 meters in the dip course,
locating the continuation of the block 830.
Minor fractures occur abundantly, both pre-minerals such as post-minerals. The most characteristic faulting
is the post-mineral, which causes intense fracturing in the vein and moves it small jumps of centimeters to a
few meters.
The intrinsic structural configuration of El Limon Vein is characterized by the presence of morphologies of
the sigmoid loop type and occasionally echelon and ponytail structures.
September 15, 2015
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In the Sibson nomenclature (1990), these structures are called "Jogs" and basically correspond to
inflections, jumps, imbricated fans and extensional duplex.
There are also small E-W faults generating displacement measured in cm in the veins.
7.5.3 Jointing:
The main families of joints are: E-W/60°- Vertical, N45°W/-30°- Vertical, and N-S/45° - Vertical.
The vein is continuous and it extends to depth with N5°E - N15°E more or less constant disposition,
dipping from 35° to 55° W, except for some changes produced by a folding area, its axis course is
N20°W/28°, locally changing its arrangement and altering its folding site, therefore altering the
exploitation system.
7.6
REGIONAL AND LOCAL STRUCTURAL DESCRIPTION OF EL LIMON MINE
The prevailing geological feature in the area is called the OTU FAULT, its prevailing course is N15-20E
and it tilts towards the West. Since it behaves like a reverse fault in rocks featuring gneissic Precambrian
age, it overlaps schistose rocks of the Paleozoic era towards the East. This is a local event and it is
characteristic of the morphology of the fault of the Valley of the Juan Vara creek, where the mine is
located.
With the pre-cretaceous known activity to date, gold mineralization continues associated with more than
100 km to the South, where it joins the Palestinos Fault that has a length of more than 500 kilometers to the
south of the mineralized zone of Caldas and Tolima, this failure originates a series of very recent faults, as
the known faults Leonel, 1 W, 5N, Victoria and Limon, with an echeloned structure and it is mainly related
having the parallelism to Leonel Fault as a pattern.
From angles close to 30° regarding the Otu Fault, the activity of these faults is contemporary of the
mineralization flows, and it has acted as a priority in relation to mineralization. The fissure where the
quartz vein was injected behaves as a fault featuring dextral direction and its projection towards the North
also forms a 30° angle with the Otu Fault.
The photo-geological presence describes the Northern and Southern zones, parallel to the course of the
Leonel fault and angles that form it are about 30° with Otu Fault which corresponds to the Siete Sur Zone
and the north part of La Estrella Mine, giving place to the possibility that the veins thereof behave like
echelon parallel structures and it keeps a close relationship with the Otu Fault through faults featuring
reverse character affecting the structure and creating "traps" for mineralization; additionally, it was reported
in detail when referring to the Out Fault, so this could cause low values in level 5.
September 15, 2015
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8.0
DEPOSIT TYPES
Sillitoe (2008) classifies the gold deposits of North and South America into five broad categories; 1)
epithermal deposits in shallow volcanic environments, 2) porphyry gold or gold only deposits in the
subvolcanic environment, 3) sediment hosted (or Carlin-type) deposits in non-metamorphosed, carbonaterich sedimentary sequences, 4) pluton-related deposits in deeper, but still epizonal intrusive environments
and 5) orogenic deposits in metamorphic rocks, commonly assignable to greenschist facies (Figure 8.1).
Deposits of the Zaragoza / Segovia belt are classified as “Oxidized Pluton-Related Deposit” within the
plutonrelated (#4) category. They are believed to be genetically related to the Segovia batholith, but to have
formed after the batholith cooled and under stress conditions induced by the Otu fault.
The main characteristics of “Oxidized Pluton-Related Gold Deposits” are:




hey occur as quartz veins, sheeted quartz veins and stockworks.
Associated elements are Cu, Pb, Zn and Mo, and these normally are present as sulphide minerals.
The deposits may occur both in the pluton itself and in the intruded wall rocks.
ommon alteration types that occur proximal to the deposits are alkali feldspar and sericite.
Standard geochemical exploration techniques may be applied in the search for deposits of this type since
a) sheeted veins and stockwork deposits may have a surface expression measured in hectare or tens of
hectares, and
b) they normally have associated base metals (Cu, Pb, Zn & Mo).
A stream sediment survey is useful to define broad target areas, while a more tightly controlled soil survey
is employed to define trenching or drill targets.
September 15, 2015
Page 45
Figure 8.1
βETA
September 15, 2015
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9.0 EXPLORATION
Para, via CML, only recently acquired the project. There has been no relevant exploration work performed
on behalf of the issuer.
Para’s geologist Paulo J. Andrade, PhD Geologist, MAIG; visited the site February 5-6, 2015 and took
several grab samples from underground workings at the El Limon mine for independent analysis.
The results confirm that significant grades of gold and silver exist in site. BETA notes that the samples are
not representative of the mineralization as a whole. Results as presented by Para are shown in Table 9.1
and Table 9.2 below.
Sample ID
PBRCO-001
PBRCO-002
PBRCO-003
PBRCO-004
PBRCO-005
Table 9.1
Independent Samples Taken by Para
Location
Description
N Front-Level 7
N Front-Level 7
Duct-Level 06
Chamber-Level 7
Quartz vein; abundant Py>ZnS>PbS
Duct-Level 06
Table 9.2
Assay Results from Independent Samples Taken by Para
Sample ID
PBRCO-001
PBRCO-002
PBRCO-003
PBRCO-004
PBRCO-005
Au (g/t) Ag (ppm) Cu (ppm) Zn (ppm) Pb (ppm)
13.67
11.80
31
177
572
0.01
0.70
55
111
11
3.44
3.90
53
156
48
124.70
127.50
29
17984
12043
0.15
0.40
16
12
6
September 15, 2015
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βETA
10.0 DRILLING
There has been no drilling performed by CML or Para. The following drill results are from previous
operators.
BETA reviewed:

drill logs and drill core from three holes drilled on level 8 in November 2013; and,

drill logs from two diamond drill holes, drilled in 2008 drilled by Four Points.
The cores from the 2008 drilling were not examined.
The type and extent of drilling is described below. There is no report available on the procedures followed
for this drilling. BETA is not aware of any drilling, sampling, or recovery factors that could materially
impact the accuracy and reliability of the results shown in this section.
As one of the last exploration activities made by Four Points in the area of the El Limon mine, drilling was
undertaken in November 2013 consisting of three holes drilled from a cross cut on Level 8 as indicated on
Table 10.1 and Figures 10.2 and 10.3.
Table 10.1
Drill holes locations - drilled from Level 8 to define the presence of sector 5 of the El Limon vein.
These drill results were modeled in Vulcan, utilizing results as received from on the 27th of August 2014
and these new results are presented in the following interpretation of implications for exploration. Drilling
was designed to perpendicularly intersect the mineralized vein. The relationship between the sample length
and the true thickness of the mineralization has been accounted for in the Vulcan model. The data
presented in the tables show actual sample length.
During the field activities a rapid revision of the drill core was made with the following observations:
1.
In Hole FPM-PZ-01, azimuth 180, Dip -86, length 68 metres, all the lithology corresponds to
biotite gneiss, and at a depth of 58.2m begins a zone of alteration, quartz-sericitic, weak to
moderate, which extends to 59.5m: later the biotite gneiss continues and then another zone of
weak sericitic alteration, with intense silicification up to 66.5 m. In the report from Minera Four
Points, there is a vein between 8,5 and 10 metres but in the boxes there was no core remaining,
since all was sent to the laboratory. The results of the samples No. 1 and 2, which according to
the order of the drill holes correspond to FPM-PZ-01, with values of 100 and 200 ppb possibly
corresponding to another type of quartz, possibly metamorphic, without sulfides and therefore
does not correspond to segment 5 of El Limon.
September 15, 2015
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βETA
2.
3.
In Hole FPM-PZ-02, with azimuth 100 dip -70, length 65 metres, all of the rock corresponds to
biotite gneiss with three weak fault zones, between 16 and 17 metres, between 21.5 to 23 metres
and between 44 and 45 metres. Between 62 and 64 m there is a zone of sericitic alteration, weak
to moderate in rock which is not cataclastic. In the revision of the logs this hole was not sampled.
In hole FPM-Pz03, azimuth 280, dip -70 and depth 20m, we observed biotite gneiss, with two
fault zones, between 11 and 14m. In the Minera Four Points report, there is a vein between 17.5
and 20 m but there are no remaining samples in the core box.
Photograph 10-1: Core cases from hole FPM-PZ-01, with gneiss biotite and the empty space corresponding
to sample (muestra) #1 and 2, between 8.5 and 10.0 meters down the hole, with results of 101 and 192 PPB
gold, indicating that it does not correspond to sector 5 of the El Limon vein.
September 15, 2015
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βETA
Figure 10.2 – View of the intercept of FPM-PZ-03, between 18.50 and 20.00 meters with results of 5.60
and 4.60 PPM gold. In the figure the displacement of fault 8 is shown to be 50m between sectors 4 and 5,
however based on these results the displacement appears to be 18 to 20 meters.
Figure 10.3
Plan view of the intercept of MPF-PZ-03 18.5 and 20.0 meters with results of 5.60 and 4.60 PPM gold.
September 15, 2015
Page 50
βETA
Prospect
Hole #
Depth
Status
Results
El Limon
Pzlim-01
456.3
completed
0.30 m Limon vein intersected at 451 m
El Limon
Pzlim-02
422.8
completed
thin intercept of Limon vein; sparse sulfs.
60 cm sample (some non-vein material)
with pyrite-galena
Figure 10.4
Cross Section Views of El Limon Mine
The drill holes were designed with the aim to establish the continuity of the El Limon mine below level 7
along the dip. Two holes were planned with a depth of 450 m, vertical. Drilling was conducted between
the months of June and August of 2008 with a Longyear 38 machine. The cores were marked, boxed and
transported to the El Limon mine site, where sample preparation was performed. Core was marked in the
boxes, washed, photographed, and split by diamond saw. Samples for assay were selected from the cores
taking into account the mineralization and the structures present in the rock. A total of 47 samples in hole
PZLIM01 and 94 samples in holes PZLIM02 were analyzed.
PZLIM01
Hole Pzlim01 reached a total depth of 456 m and intersected two families of lodes, the most important of
which at 450.50 m corresponds with the projection of the Limon mine. This intercept proved continuity of
50 m along the dip of the vein.
September 15, 2015
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βETA
212587
21258:
212591
212592
212593
212594
212595
212596
212597
212598
212599
21259:
2125:1
2125:2
2125:3
2125:4
2125:5
2125:6
2125:7
2125:8
2125:9
212612
212613
212614
212615
212616
212617
212618
212619
21261:
212621
212622
212623
212624
212625
212626
212627
212628
212629
21262:
212631
212632
212633
212634
212637
212638
212639
21263:
212641
212642
212643
212644
212645
212646
212647
212648
212649
21264:
212651
212652
212653
212654
212655
212656
212658
212659
212662
212663
212664
212665
212666
212667
212668
212669
21266:
212671
212672
212673
212674
212675
212676
212677
212678
212679
2*8:4
9*43
2*259
1*:2:
1*194
7*36
6*48
1*38
1*57:
1*242
3*7:2
1*894
1*489
:3*18
2*456
6*48
49*16
4:*36
45*16
5*415
2*267
2*654
1*3
1*857
2*753
44*8:
5*652
2*44
8*42
3*849
2*39:
:*18
6*64
33*9
1*918
3*449
32*22
3*7:5
33*87
9*24
:*3
24*26
21*55
212*83
7*23
6*:4
1*982
52*4
2*546
1*653
34*82
42*66
3*272
:*76
94*42
44*14
9*6:
1*2:2
1*623
1*158
1*616
3*556
2*24:
2*152
72*69
:*8
27*37
63*46
53*6
226*68
27*55
34*42
56*75
79*97
51*42
29*64
8*:6
6*49
32*33
23*:5
22*62
7*68
33*39
66*33
4
5*8
3
4*7
1+3
5*2
7
1*4
1*:
1*5
2*9
2*5
1*3
::*8
2*4
5*:
63*5
39*3
4:*9
9*4
2*9
5*4
2*3
3*2
4*2
39*7
6*5
2*2
8*9
5*:
2*9
24*7
7*7
27*4
1*:
2*:
29*8
2*:
4:*4
27*3
6*7
21*3
23*3
73*6
7*3
24*2
2*6
37*8
3*9
2*:
2:*8
62*8
2*:
:*2
74*4
44*8
21*4
2*3
4
2
1*6
4*5
2*6
5*5
:7*3
:*9
39*:
31*9
46*5
:9*5
27*5
36*4
63*9
57*7
64*3
31*8
:*9
:*9
28*9
28*8
23*7
8
26*9
36*7
September 15, 2015
Page 52
βETA
21267:
212681
212683
212684
212687
212688
212689
21268:
212691
212692
212693
212694
212695
212696
212697
212698
212699
21269:
2126:1
2126:2
2126:3
2126:4
2126:5
2126:6
2126:7
2126:8
2126:9
212991
212992
212993
213212
213215
213216
213217
213218
213219
21321:
213221
213222
213223
213224
213225
213226
213227
213228
213229
213231
213232
213233
213234
213235
213236
213237
213238
213239
21323:
213241
($
28*13164:
48*95
67*73
23*12
1*137
4*257
3*63:
1*4:9
1*559
2*19
22*93
27*45
3*63:
8*89
1*61:
1*383
6*64
3*48
8*6:
3*254
5*132
7*58
2*615
8*14
8*82
23*97
31*:5
26*6
1*1:8
1*248
1*15:
82*8
1*527
47*18
74*97
3*986
6*57
23*17
43*74
5:*35
71*55
33*17
98*43
1*8:7
71*38
2:*15
7*98
46*89
2:*59
5*875
:*:3
3*58:
4*937
3*57:
9*29
2*:42
:4*23
3*376
27*6427658
63
68*3
21*6
;1+3
3*8
4*8
2*:
5
1*:
22*:
6*9
3*7
5*7
1*4
2*2
8
3*5
23*7
3*5
3*3
3*9
2*5
8*8
5*9
24*9
32*7
26*7
1*:
1*8
1*5
76*2
2*6
41*:
54*6
5*2
:*9
23*6
44*5
58*7
37*2
39
66*6
1*9
86*5
33*3
8*3
45*2
32*8
7*4
2:*3
4*6
6*8
3*3
3*3
5*2
7:*2
3*3
September 15, 2015
Page 53
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September 15, 2015
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βETA
11.0 SAMPLE PREPARATION, ANALYSES, SECURITY
Sample preparation and analysis is performed onsite. BETA did not review the sample preparation or
analysis procedures actually utilized.
BETA was not able to identify the sample preparation methods and quality control measures employed
before dispatch of drill core samples to the analytical laboratory, the method or process of sample splitting
and reduction, nor the security measures taken to ensure the validity and integrity of samples taken. BETA
therefore cannot comment with regard to the nature, extent, and results of quality control procedures
employed and quality assurance actions taken.
As such, none of the results from historical drilling are suitable for resource or reserve evaluation.
BETA’s qualified person does not believe that historical sample preparation, security, and analytical
procedures were adequate.
As a result, Four Points has, under the direction of CML, produced a Sampling Quality Assurance / Quality
Control Plan which meets acceptable industry standards for future use.
September 15, 2015
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βETA
12.0 DATA VERIFICATION
BETA personnel independently verified the site conditions, mine geology and mineral processing
operations.
BETA has not independently verified or check-sampled any of the laboratory results presented in this
report.
The mining of ore and the production of gold from the existing operation was independently verified for the
project.
In the opinion of the author, the data presented in this report is adequate and appropriate for the purposes
used in this technical report.
September 15, 2015
Page 56
EL LIMON PROJECT
TECHNICAL REPORT
Zaragoza, Antioquia, Colombia
TECHNICAL REPORT
PURSUANT TO NATIONAL INSTRUMENT 43-101
OF THE CANADIAN SECURITIES ADMINISTRATORS
Prepared For
PARA RESOURCES INC.
Prepared By:
David Bikerman, EM, MS, MAIG
200 Central Park South 3Q, New York, New York, 10019, U.S.A.
September 15, 2015
βETA
The material being discharged from the fine ore bin at the time of site visit was about minus ¾”. The
crushing plant operates at 10-12 tonnes per hour with a maximum capacity of 20 tonnes per hour.
MILL PLANT
The mill was operating throughout BETA’s visit.
The 5’ x 10’ ball mill was originally a bar mill that was retrofitted for balls. Rubber liners were installed in
2102. Ore is fed into the ball mill, from which the oversize is separated via trommel for regrinding and the
undersize is fed to 12” duplex jigs. There seemed to be considerable coarse overflow from the mill.
The material separated by the jigs contains the majority of the gold recovered by the mill. The product
captured by the jig is concentrated on the Wiffley table, and then run through a small ball mill with
mercury. Gold is then recovered by amalgamation.
The pulp is collected in a pulp tank and pumped to a pair of hydrocyclones.. BETA notes that these pumps
appear to be too small. The oversize from the hydrocyclone recirculates into the ball mill, while the
undersize goes to a conditioner tank in preparation for flotation.
Flotation cells are operating at partial capacity, with motors operating at differential speeds limiting their
effectiveness. Flotation cell dividers were not operational so corners between the cells have been cut out to
allow fluids to flow through between cells.
Flotation provides between 5-10% mass pull. The flotation concentrate is pumped to a thickener, from
which it goes to a 3’ x 4’ regrind mill and into a concentrate tank from which it is pumped to a pair of
hydrocyclones. The coarse reject is recirculated through the regrind mill, while the fines are sent to
agitation tanks (5 batch tanks operating in parallel) for cyanidation.
A Merrill Crowe precipitation circuit , which reportedly can handle 20 cubic meters of solution per day, is
utilized to remove the gold from solution and produce dore bars on site.
Ball mill size and pumping capacity appears to be the limiting factors keeping plant tonnage constrained at
3.8-4 tonnes per hour, making the current plant a 100 tpd max best-case throughput, more likely a 75 tpd
plant as is.
September 15, 2015
Page 58
βETA
The barren solution tank was rusted through at the top, so it was kept at ¾ level, but the system was
operable.
While presently in operational condition, the mill needs some work. Tank repairs, valve repair, etc are
needed in addition to increased milling capacity in order to bring it to 150-200 tpd. (this will be mitigated
in the rehabilitation underway)
The mine has adequate facilities for security, warehouse, geology & core storage, lamp room, etc.
September 15, 2015
Page 59
βETA
The following equipment was in place at the start of reconstruction in May 2015:
Table 13.1
Equipment in Mill Plant – May 2015
21
7
3
2
5
6
3
September 15, 2015
27.33.
5&
621&
7&47.
4)5&
23.23.
35.35.
41.41.
35.35.
2*64!
-7
-7
-5
-5
-21
57&
219&
57&
77&
2221&
31111 ,
211"#$#&&
31"#$#&&#$#"'$
21"#$#&&#$#"'$
Page 60
βETA
14.0 MINERAL RESOURCE ESTIMATES
There are no mineral resource estimates that meet NI 43-101 standards.
September 15, 2015
Page 61
βETA
15.0 MINERAL RESERVE ESTIMATES
There are no mineral reserve estimates that meet NI 43-101 standards.
September 15, 2015
Page 62
βETA
16.0 MINING METHODS
Underground development at the El Limon mine has continued nearly continuously for 75 years. The
mine has been developed by room and pillar method, as the inclination of the vein is not sufficient to allow
for stoping. The El Limon vein has been developed on 8 levels; production over the past 15 years has been
from levels 5-8.
Figure 16.1 Underground Workings at El Limon Mine
September 15, 2015
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Figure 16.2. Levels and raises in levels 3, 4, 5, 6, 7, and 8 of the Limon mine.
The underground workings are accessed via the mine portal (at level 0). Track extends from the mine
mouth to an incline drift (shaft), located about 150 meters south of the portal. This primary incline drift is
325 meters long at 50° dip, measuring 3m x 3m, amd extends down from level 0 (portal level) to level 6.
A second incline shaft, located on level 6 about 300 meters north of the bottom of the primary incline, is
utilized to access levels 7 and 8.
Figure 16.2
Portal Entrance, El Limon Mine
The mine openings are naturally supported, with square set timber installed as needed in fault zones or
other areas of instability.
Figure 16.3 – Drilling Schematic
September 15, 2015
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Mine drift development is by drill, blast and muck. Drilling is with standard pneumatic shortleg drills
using 5 foot rods and 34mm (1.33 inch) diameter holes. The holes are loaded with explosive (ANFO,
Indugel), with blasts planned for twice daily. Each advance is 1.5 meters. Material from the face is loaded
into 1 tonne mine cars with Eimco12B muckers.
Development of drifts and raises for room and pillar extraction follows typical extraction methods as shown
in Figure 16.4.
Figure 16.4
Room and Pillar Extraction Method
Room (stope) development is drilled and blasted utilizing the same drills and explosives as used in drifting.
Mucking of the face is by winch and bucket (scraper).
Twelve (12) scraper bucket loads (“bulto”) fill a one tonne rail car, which is pushed manually on the lower
levels from the draw point to the incline shaft, where it is loaded onto skips for transport to the surface.
The loaded cars are manually dumped into 2-ton skip buckets that raise the material up to the surface,
where it is loaded into 1 tonne rail cars for transport out of the mine to the crushing plant (ore) or waste
dump.
A 1.5 ton battery locomotive is shown to exist, however all of the mine cars were pushed manually at the
time of BETA’s site visit.
September 15, 2015
Page 65
βETA
Figure 16.5 Typical Room and Pillar Mine – Room Development
Mine ventilation is by axial fans located underground. A 10hp fan is situated on level 0. Fans are placed
on the levels of exploitation (currently levels 6 and 7) in a manner so as to circulate air to facilitate the
workers. The two auxiliary fans are 5ph and 7.5 hp.
Photograph of Axial Fan for Ventilation
Photograph of Dewatering Pump
Mine dewatering is accomplished by means of four (4) suction pumps of 24hp each. These pumps are
located on levels 6, 5, 4 and 3, and arranged in series such that the water on level 6 is pumped to the sump
on level 5, and from there to level 4 and level 3 and from there to the surface.
At the time of BETA’s site visit, extraction of ore was being conducted on low-grade blocks in the southern
part of level 6, as well as higher grade blocks on level 7.
Development work is currently suspended due to lack of geological data to indicate the presence and
continuity of the quartz vein to the north and south ends of levels 5-8. In particular, there is a lack of
exploration drilling from underground drill stations to determine the displacement of the vein across
limiting faults. While the historical drilling records indicate approximately 20 drill holes from the surface
and 45 drill holes from underground from levels 3, 4 and 5, most of these intercepts have already been
September 15, 2015
Page 66
βETA
mined. Only three drill holes are relevant: drilled from level 8 south, in November 2013; however these
did not produce significant intercepts.
From level 5 toward surface, all levels are facing collapse and considered dangerous. Current workings are
on levels 6-8.
The El Limon quartz vein is continuous along strike for 600 meters trending N10-20E, with inclination of
40 to 50 SW. The vein has been shown to be continuous down dip for 350 meters, affected by post-mineral
reverse faulting direction, and possibly associated with one of the final mineralizing events.
The dip of the quartz vein between levels 7 and 8 changes drastically to a pitch of 60 to 70 to the SW.
Limiting faults are present at both the north and south ends of levels 7 and 8. Exploration drilling is
required to determine the location of the vein as displaced by these faults.
.
Two details of the limiting fault of Level 8 south
The mine rooms and pillars are referred to numerically by levels and raises (“tambor”), based upon the
distance from the incline shaft. For example Level 6 Raise 9S (or alternatively level 6S raise 9) refers to
the raise beginning 9 meters south of the primary incline drift on level 6. Level 6 Raise 70N refers to the
raise beginning 70 meters north of the primary incline drift. On levels 7 and 8, the raises are measured
from the incline shaft that connects levels 6-8.
Mine production was feasible at the following locations at the time of BETA’s visit:
Level 6 - raises 9S, 52N and 70N
Level 7 – raises 92S, 39S, 14S, 10N 20N and 90N
Level 8 – raises 65S and 19S
Numerous channel samples have been taken in the mine workings. Results of some these sample locations
and isovalue maps, from 2011 and 2012, are shown in the following Figures 16.6 to 16.11. Most of the
areas sampled have since been mined out.
September 15, 2015
Page 67
βETA
7/12/11
7/12/11
7/13/11
7/13/11
7/13/11
7/13/11
7/13/11
7/13/11
7/13/11
7/13/11
7/13/11
7/13/11
7/13/11
7/13/11
7/13/11
7/13/11
7/13/11
7/13/11
7/13/11
7000
7001
7002
7003
7004
7005
7006
7007
7008
7009
7010
7011
7012
7013
7014
7015
7016
7017
7018
7019
7020
7021
7022
7023
7024
7025
7026
7027
7028
7029
7030
7031
7032
7033
7034
7035
7036
7037
7038
7039
7040
7041
7042
7043
7044
7045
7046
7047
7048
7049
7050
7051
7052
7053
7054
7055
7056
7057
7058
7059
7060
7061
7062
7063
7064
7065
7066
7067
7068
7069
7070
7071
7072
7073
7074
7075
7076
7077
7078
7079
7080
7081
7082
7083
7084
7085
7086
7087
7088
7089
7090
7091
7092
7093
7094
7095
7096
7097
7098
7099
0.20
0.20
19.00
15.30
2.80
58.70
0.20
3.00
1.90
5.60
106.30
12.20
14.00
0.20
66.60
6.90
3.80
377.00
94.70
12.30
18.50
48.30
33.60
11.40
140.90
7.60
9.10
8.60
19.40
148.10
29.30
39.30
150.90
21.40
8.90
556.30
140.50
Pila de Veta
Canal en veta
Canal en veta
Canal en veta
Canal en veta
Canal en veta
Canal en veta
Canal en veta
Canal en veta
Canal en veta
Canal en veta
Canal en veta
Canal en veta
Canal en veta
Canal en veta
Canal en veta
Canal en veta
Canal en veta
Canal en veta
Nivel 7 sur
78 + 0
Nivel 7 Norte 78 + 3.40
Nivel 7 Norte
2
Nivel 7 Norte
4
Nivel 7 Norte
6
Nivel 7 Norte
8
Nivel 7 Norte
26
Nivel 7 Norte
30
Nivel 7 Norte
32
Nivel 7 Norte
36
Nivel 7 Norte
38
Nivel 7 Norte
40
Nivel 7 Norte
42
Nivel 7 Norte
44
Nivel 7 Norte
46
Nivel 7 Norte
48
Nivel 7 Norte
50
Nivel 7 Norte
56
Nivel 7 Norte
58
N.A
43 cm
73 cm
100 cm
74
47
25
26
70
102
100
50
66
70
55
20
50
45
58
N.A
43 cm
73 cm
100 cm
74
47
25
26
70
102
100
50
66
70
55
20
50
45
58
224.30
192.30
142.80
19.60
13.00
81.20
27.00
36.40
19.70
43.30
52.60
36.00
13.20
4.40
5.40
26.80
18.10
39.00
68.20
126.40
23.00
3.60
28.20
66.40
84.20
0.40
0.40
5.10
76.60
23.60
44.20
131.20
12.00
0.60
0.40
8.60
2.40
0.40
0.40
1.30
16.70
0.40
94.80
69.00
137.70
21.30
43.10
36.30
62.40
6.60
12.20
10.80
10.60
14.80
8.20
291.60
291.60
285.60
41.60
24.70
171.40
43.20
80.00
33.50
47.60
99.90
77.30
19.40
10.20
11.90
56.30
42.60
74.30
161.70
198.60
40.90
11.80
63.40
109.30
146.30
12.30
9.10
11.40
160.70
55.80
99.30
321.80
28.20
8.40
6.60
19.10
17.30
11.90
0.90
7.60
39.40
7.90
147-9
133.40
290.30
47.30
101.90
96.30
85.40
10.80
21.60
25.40
25.60
39.30
23.90
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
Nivel 7 Norte
Nivel 7 Norte
Nivel 7 Norte
Nivel 7 sur
Nivel 7 sur
Nivel 7 sur
Nivel 7 sur
Nivel 7 sur
Nivel 7 sur
Nivel 7 sur
Nivel 7 sur
Nivel 7 sur
Nivel 7 sur
Nivel 7 sur
Nivel 7 sur
Nivel 7 sur
Nivel 7 sur
Nivel 7 sur
Nivel 7 sur
Nivel 7 sur
Nivel 7 sur
Nivel 7 sur
Nivel 7 Sur
Nivel 7 Sur
Nivel 7 Sur
Nivel 7 Sur
Nivel 7 Sur
Nivel 7 Sur
Nivel 7 Sur
Nivel 7 Sur
Nivel 7 Sur
Nivel 7 Sur
Nivel 7 Sur
Nivel 7 Sur
Nivel 7 Sur
Nivel 7 Sur
Nivel 7 Sur
Nivel 7 Sur
Nivel 7 Sur
Nivel 7 Sur
N7S T.14
N7S T.14
N7S T.14
N7S T.14
N7S T.14
N7S T.14
N7S T.14
N7S T.14
N7S T.14
N7S T.14
N7S T.14
N7S T.14
N7S T.14
N7S T.14
N7S T.14
62
64
66
4
6
8
10
12
14
16
18
20
32
26
28
30
32
34
36
38
40
42
44
46
48
50
52
54
56
58
60
62
64
68
70
72
74
76
78
80
2 M.
4
6
8
10
12
14
16
18
20
22
24
26
28
30
70 cm
54 cm
59 cm
132 cm
110 cm
35 cm
25 cm
36 cm
30 cm
32 cm
26 cm
30 cm
40 cm
65 cm
76 cm
60 cm
50 cm
48 cm
39 cm
24 cm
47 cm
36 cm
47 cm
38 cm
40 cm
45 cm
40 cm
35 cm
76 cm
47 cm
50 cm
30 cm
48 cm
20 cm
15 cm
26 cm
36 cm
34 cm
52 cm
24 cm
27
30
36
40
42
78
60
28
37
16
14
19
20
20
70 cm
54cm
59 cm
132 cm
110 cm
35 cm
25 cm
32 cm
30 cm
32 cm
26 cm
30 cm
40 cm
65 cm
76 cm
60 cm
50 cm
48 cm
39 cm
24 cm
47 cm
36 cm
47 cm
38 cm
40 cm
45 cm
40 cm
35 cm
76 cm
47 cm
50 cm
30 cm
48 cm
20 cm
15 cm
20 cm
26 cm
36 cm
34 cm
52 cm
24 cmc
27
30
36
40
42
78
60
28
37
16
14
19
20
20
10.40
29.20
8.20
55.60
133.00
68.40
22.20
161.50
127.70
79.00
113.30
58.20
130.40
34.70
101.40
14.80
19.60
50.40
80.60
3.00
79.30
92.80
179.80
46.40
0.00
81.40
0.00
139.40
345.80
157.30
69.80
399.60
301.90
88.30
112.50
84.84.3
127.60
48.90
119.90
0.00
17.30
71.50
85.90
0.00
95.60
118.70
104.50
79.60
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
Canal
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
en
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
veta
N7S T.14
N7S T.14
N7S T.14
N7S T.14
N7S T.14
N7S T.14
N7S T.14
N7N T. 55
N7N T. 55
N7N T. 55
N7N T. 55
N7N T. 55
N7N T. 45
N7N T. 45
N7N T. 45
N7N T. 45
N7N T. 45
N7N T. 45
N7N T. 45
N7N T- 30
N7N T- 30
N7N T- 30
N7N T- 30
N7N T- 30
34
36
38
40
42
46
48
0
2
4
6
8
0
2
4
6
8
10
12
2
4
6
8
10
40
20
30
20
32
34
40
54
61
36
32
30
30
32
42
20
24
64
41
47
20
64
22
8
40
20
30
20
32
34
40
54
61
36
32
30
30
32
42
20
24
64
41
47
20
64
22
8
7/14/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/19/11
7/26/11
7/26/11
7/26/11
7/26/11
7/26/11
7/26/11
7/26/11
7/26/11
7/26/11
7/26/11
7/26/11
7/26/11
7/26/11
7/26/11
7/26/11
7/27/11
7/27/11
7/27/11
7/27/11
7/27/11
7/27/11
7/27/11
7/28/11
7/28/11
7/28/11
7/28/11
7/28/11
7/28/11
7/28/11
7/28/11
7/28/11
7/28/11
7/28/11
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7/28/11
7/28/11
7/28/11
7/28/11
Figure 16.6 Channel Samples taken July 2011 by Four Points
September 15, 2015
Page 68
βETA
Figure 16.7 Channel Samples taken January 2012 by Four Points
Figure 16.8 Channel Samples, Level 7 North
September 15, 2015
Page 69
βETA
Figure 16.9 Gold Isovalue Map of Channel Samples, Level 7 North
September 15, 2015
Page 70
βETA
Figure 16.10 Channel Samples, Level 7 South
September 15, 2015
Page 71
βETA
Figure 16.11 Gold Isovalue Map, Channel Samples, Level 7 South
September 15, 2015
Page 72
βETA
EQUIPMENT IN MINE:
5 - Pneumatic drills YT-28 column and lubricator with
2 - pneumatic drills Toyo-260
6 - pneumatic drills Toyo-280L
1 - electric winch with barrel for loading 2" Sunderland
1 - electric winch with barrel for loading 2" WEG motors 50 KVA
1 - winch Sunderland motor siemens 30 KVA
2 - pneumatic Shovels EIMCO
3 - peristaltic pump Envirotech pump system inc 30 HP Level 3,5,7
2 - 24HP centrifugal pump Level 6, Level 6N,7
2- 10HP centrifugal pump level 6.7
3 - sludge pump 10HP Wilfley type 2" Platform 0, level 6N,7
2 - Siemens Transformer 500 KVA
1 - Axial Fan Motor 75 HP
1 - electric motor Level 6 Siemens M OT 279
1 - 5 HP Siemens platform 0
10 – ore cars
1 - electrical substation
4 - axial fans Vano WEG
1 - pneumatic Grinder ss266jr
1 - Locomotive 1.5 ton
300 - Rail 25 lbs/yd tranches 6m lengths
4 - Compressors atlas copco GA 75 WEG motor 100 KVA 220 v-220 psi-901 digital control
September 15, 2015
Page 73
βETA
17.0 RECOVERY METHODS
The historical operations at El Limon provide reliable information on the recoverability of gold and silver
from the nearby mineralization, and the amenability of the mineralization to the proposed processing
method.
CML has operation control over the upgrades and renovation of the mineral processing facilities on behalf
of FPM. Tom McGrail, Engineer of Mines, MAIG, is the individual responsible for the plant upgrades and
renovation. The planned upgrades include installation of equipment required to increase mill throughput to
200 tpd. The proposed mineral process has not changed. Amalgamation is eliminated. A conceptual
flowsheet (see figure 17.1) details the proposed upgraded circuit with calculated material flow for each
component of the plant.
At the time of the writing of this report, the existing ball mill and flotation circuit have been disassembled
pending relocation. Detailed CAD design of the plant is underway, and pertinent equipment has been
sourced and contracted for delivery in tranches through October. Two used mills have been sourced incountry and are being inspected and serviced as necessary prior to delivery to site. Electrical demands have
been recently reviewed by an independent contractor.
The roof of the mill building is pending repairs that have been contracted to be completed by September 15.
Final process plant design is to be completed in mid-September with installation continuing through
November. The crushing plant will be refurbished, mitigating the discrepancies described below of the
existing facilities, by mid-October.
September 15, 2015
Page 74
Slurry Density (t/m 3)
Ore/Solution Density
17.69
20.45
Solution (m3/h)
Slurry (m3/h)
% Solids
3
1.24
2.75
30.0%
20.45
17.69
7.58
24
2.75
1.94
76.1%
10.13
4.69
14.95
2.75
1.00
31.33
31.33
23
"!!&$&
1.24
30.0%
7.58
22
2.61
2.75
2.61
2.75
Solids (t/h)
STREAM DATA:
Slurry Density (t/m 3)
Ore/Solution Density
0.13
1.64
97.0%
0.13
1.64
97.0%
Solution (m3/h)
2
4.17
.0
2.90
1.20
25.0%
3.80
3.41
1.14
25
2.75
1.29
35.0%
31.54
26.38
14.20
4
./
,%"!!&$&
$(&+
*0
Slurry (m3/h)
% Solids
1
.0
&"
4.17
%
!%
Solids (t/h)
STREAM DATA:
$
$"%%&$
&$ #
2.75
1.25
31.1%
16.62
14.28
6.45
26
2.75
1.91
75.0%
7.26
3.47
10.41
5
%
!$")
+"!
'%&$.0
./
!$")
+"!
'%&$./
6
2.90
1.49
50.0%
0.01
0.01
0.01
27
2.75
1.10
14.2%
24.29
22.91
3.79
($")
%
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21.62
19.27
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22.81
22.81
7
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2.75
2.18
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3.48
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6.44
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2.90
1.36
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1.38
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9
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18.14
18.14
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10.13
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1.40
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31.54
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1.32
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5.47
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2.90
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Figure 17.1
2.90
1.97
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3.08
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3.05
2.51
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2.90
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4.32
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42
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5.00
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"##$-$'!
The following work has been undertaken by FPM since CML assumed control as of June 1, 2015.
Table 17.1
Mill Renovation Work Schedule
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August 31, 2015
Page 76
βETA
! (&-
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September 15, 2015
Page 77
βETA
Figure 17.2 Flow Diagram of Crushing and Process Plant – MFP – 2014
September 15, 2015
Page 78
βETA
Table 17.2
1. JAW CRUSHER AND ROLLER GRINDER
MOTOR:
OPENING: 12"
874 rpm
1700 rpm
220V - 14 amps - 7.5 hz
polea motor: 3"
JAW CRUSHER
2. DISC PULVERIZER
ROLLER
GRINDER
MOTOR
CENTURY:
437 rpm
220V - 3KW
4. GAS SMELTING OVEN
Motor búfalo, 1/4 hz para horno a gas
Hanna HI 3222 con electrodo ISE HI 4109 (para
cianuro)
6. PRINTER
SCX 3200
7. PORTABLE COMPUTER
HP G42-265LA
8. PhMETER
Hanna de bolsillo
9. MUFLA TYPE OVEN
10. WATER DISTILLER
modelo K11 marca: RZG
marca SCHOTT
Gerate
11. RO - TAP
modelo: RX 29-10
serial: 11-1509
230V - 50hz 2.9amps
serie M power, model: AZ313, 310g. Legibilidad
0,001g
14. SCREEN SIEVES
MALLA: 50,70,100,200,325
220g
d=
18. SPLITTER HUMBOLDT H3992
September 15, 2015
-
-
-
-
-
-
-
-
/
-
-
.
0.01mg (80g)
0.1mg
(220g)
17. CUPELS
12. MANUAL LAMINATOR
13. ELECTRONIC BALANCE PRECISIÓN AZ 313
Sartorius
15. SAFE
16. ANALYTICAL BALANCE ANALITICA
SARTORIUS CP225D
1800 rpm
220V 3hz
3. DRYING OVEN
5. PhMETER MESA
-
-
-
-
-
-
Page 79
βETA
18.0 PROJECT INFRASTRUCTURE
The nearest ports are at Tolú and Cartagena on the Atlantic Ocean. Caucasia is situated on the navigable
Cauca River, part of the Magdalena River system which enters the Atlantic Ocean at Barranquilla.
The nearest railway is at Medellin.
The national electricity grid supplies the mine and the town of Zaragoza. There is sufficient power
available for the mine’s needs.
Hotel accommodation and field supplies are available locally in the towns of Zaragoza, Caucasia and El
Bagre.
Personnel for the project are available locally from the operating mine and from the nearby towns and
villages. The district is expected to be able to supply the basic workforce for any future mining operation.
The region has high rainfall and there are ample water resources available.
Tailings disposal has historically been located at the mine site. The environmental agency has recently
given permission for a permanent tailing disposal site located on the southern periphery of FPM’s
exploitation concession, within RPP 12011.
September 15, 2015
Page 80
βETA
19.0 MARKET STUDIES AND CONTRACTS
FPM has sold its production to several refineries in 2013-2015 in Colombia, including
Goldex, CIGSA, Gutiérrez, C.I. Mepricol, and Metales Hermanos. The most recent bars
were sold to CIGSA. There are no long term agreements for sales to refineries. FPM
regularly determines which refinery will charge the least smelter fees and sells accordingly.
As gold/silver dore has a ready market in Colombia, Para and CML have not conducted any
relevant market studies, commodity price projections, product valuations, market entry
strategies, or product specification requirements.
BETA is not aware of any contracts material to the issuer that are required for property
development at El Limon including mining, concentrating, smelting, refining, transportation,
handling, sales and hedging, and forward sales contracts or arrangements.
September 15, 2015
Page 81
βETA
20.0 ENVIRONMENTAL STUDIES, PERMITTING
AND SOCIAL IMPACT
The El Limon mine operates under Environmental License issued in Resolution #130PZ-1402-2703 dated
February 27, 2014. MFP is in compliance with the requirements of the Environmental License. The most
recent visit by Mining Agency officials was August 12, 2015.
MFP is in compliance with the groundwater sampling requirements of the government. Figure 20.1
indicates the piezometer locations for sampling activities conducted by FPM.
Figure 20.1
Piezometer Location Diagram
September 15, 2015
Page 82
βETA
MFP is in compliance with the reforestation requirements of the government. Figure 20.2 indicates the
locations for reforestation activities conducted by FPM.
Figure 20.2
Reforestation at El Limon
MFP has filed a closure plan and bond with Corantioquia (the pertinent environmental authority for the El
Limon mine). BETA is not aware of any additional closure requirements for the project.
September 15, 2015
Page 83
βETA
In March 2015, FPM formally requested from Corantioquia a modification to the environmental license in
order to allow for the movement of tailings from the current location near the mine to a new location where
long-term placement is possible. The current tailings location is nearing capacity.
FPM received approval from Corantioquia for this modification on August 24, 2015. BETA estimates a
cost of US$120,000 to move the tailings.
Figure 20.3
El Limon Mine Topography with Piezometer Locations
Figure 20.4
Tailings to be Relocated - El Limon Mine
September 15, 2015
Page 84
βETA
21.0 CAPITAL AND OPERATING COSTS
21.1
CAPITAL COSTS
In order to bring the mineral processing plant to a 200 tonne per day operating status, and to eliminate the
use of mercury in amalgamation on site, the following improvements and estimated costs are anticipated:
Table 21.1
Capital Cost Summary
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#!"
)-1,%,,,
"
)-%/,,%,,,
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)-1,%,,,
" $
)-.1%,,,
"
).1%,,,
)-%31,%,,,
Crushing plant:
1) Belt cleaners, roller replacement
2) Course ore bin feeder
3) Vibrating screen rehabilitation
4) Rebuild Jaw crusher
5) Cone Crusher rehabilitation
6) Fine ore bin feeder
Mill needs – at 200 tpd
1) Install two new ball mills
2) Fix mill foundation
3) Install equipment per design flow sheet (Figure 13.1)
4) Repair mill building
5) Repair solution tanks (35 cubic meters each)
6) Structural upgrades – walkways; stairs;
TAILINGS AND PONDS:
1) Tailings disposal area is nearly full. Transport tails to new approved facility
2) Ponds are marginal, but operable at current rates. Will need to be enlarged to double production.
LAB NEEDS:
1) Purchase and install new laboratory equipment to allow 100 determinations per day.
2) Train personnel on how to
SITE NEEDS:
1) General cleanup
2) Maintenance facility rehabilitation
September 15, 2015
Page 85
βETA
21.2
OPERATING COSTS
21.2.1 Mine Operating Cost
Cash costs have been estimated for the project by BETA based on historical costs at El Limon. Table 21.2
details the mine operating cost estimates for mining of $96.50 per ton of ore mined.
Table 21.2
Mine Operating Cost Estimates
21.2.2
!"'"
LABOR - MINE
$50.00
LABOR BURDEN & ADMIN
$10.00
EXPLOSIVES
$5.12
WOOD
$3.97
PUMPS
$0.01
OILS AND GREASE
$0.22
HARDWARE
$1.79
OTHER
$0.10
TOOLS
$0.97
FUEL
$0.01
ELECTRIC AND TELEPHONE
$13.01
TRANSPORTATION
$0.64
SECURITY
$0.06
MAINTENANCE OF EQUIPMENT
$0.60
MAINTENANCE OF SITE
$0.18
MAINTENANCE OF VEHICLES
$0.07
SERVICES
$4.44
FEES
$3.75
CASINO AND RESTAURANT
$0.15
DIVERSOS
$0.07
LEASES
$1.23
ENDOWMENTS
$0.09
TOTAL COST - MINING
$96.50
Mill Operating Cost
Cash costs have been estimated for the project by BETA based on historical costs at El Limon, factoring in
the improvements being made. Table 21.3 details the mill operating cost estimates of $59.16 per tonne of
ore processed.
September 15, 2015
Page 86
βETA
Table 21.3
Mill Operating Cost Estimates
MILL & PLANT
'
ADMIN
)3&,0
PERSONNEL
)2&3/
SALARIES
)/&/.
OVERTIME
),&/-
UNEMPLOYMENT
),&/1
SERVICE PREMIUM
),&/-
VACATIONS
),&.1
BONUS
).&-0
OTHER TAXES ETC
),&-.
TRAVEL
),&.4
MILL COSTS
LABOR
MATERIALS
)-/&,2
WINCHES
),&--
PUMPS
),&,-
CHEMICALS
)1&20
STEEL
)-&-1
OILS AND GREASE
),&25
HARDWARE
)-&02
GAS
),&-/
TOOLS
),&-.
OTHER
),&-3
FUEL
),&..
ELECTRIC AND TELEPHONE
)-/&4/
TRANSPORTATION
),&-/
SECURITY
),&,3
MAINTENANCE OF EQUIPMENT
),&--
SERVICES
)-&-4
ENDOWMENTS
TOTAL COST - MILLING
),&.-
$59.16
September 15, 2015
Page 87
βETA
21.2.3
Mine Development Plan
BETA has assisted in preparation of a 6-month mine development plan for FPM: the details and costs are
shown in Table 21.4. Total cost is estimated at $954,000.
During development, 2,870 tonnes of mineralized rock is projected to be mined. Gold production is
expected to pay back all of the proposed development activity costs.
Three major goals of this plan are:
1.
2.
3.
Repair existing ventilation shaft to provide adequate ventilation to working areas
Provide secondary egress from working areas by rehabilitating existing openings; provide
adequate manways, ladders and signs indicating escapeways; replace winch to increase worker
safety.
Develop stopes and haulage levels to prepare for future production needs.
The work to be completed in this plan includes:
Rehabilitation of 100 meter ventilation raise
Reactivation of 300 meter shaft from levels 2-4
Replacement of winch, levels 0-6
Development of 150 meters on level 7
Development of 150 meters on level 6 south
Development of stope #102 on level 6 – preparation for resuing
Development of new stope on level 7 – preparation for resuing
Rehabilitation of manways and ladders – shaft 0-5
Rehabilitation of raises 5-6 and 6-8
September 15, 2015
Page 88
" "1'
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Table 21.4
Summary - Mine Development Schedule and Cost
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Page 90
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September 15, 2015
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Table 21.5
Detail - Mine Development Schedule and Cost
βETA
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Page 91
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September 15, 2015
/3#00 /4#44
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1. 10 10
βETA
22.0 ECONOMIC ANALYSIS
An economic analysis is not presented as: the project is currently in production; this technical
report does not include a material expansion of current production capability; and there are
no reportable demonstrated resources or reserves for the project.
August 31, 2015
Page 92
βETA
23.0 ADJACENT PROPERTIES
The qualified person for this report has been unable to verify the information in this section. The
following information is not necessarily indicative of the mineralization on the El Limon property that is
the subject of this technical report
23.1 Regional Mines
Principal towns in the region include El Bagre, Zaragoza, Segovia, Remedios and Santa Isabel; all of which
are aligned with the north/south Otu fault. Mining activities are present in all areas, with the principal
operations defined below:
Zaragoza:
Segovia:
Remedios:
Santa Isabel:
La Ye and El Limon mines
Frontino Gold Mines and Marmajito mine
San Pablo mine
Quintana mine
23.2 Zaragoza District
The Zaragoza district comprises approximately 46,000 hectares of 100% owned concessions and
concession applications covering a broad zone of 60 x 20 km principally contained with the municipality of
Zaragoza.
Within the district there are more than 60 small scale mining operations and several established
trends of artisanal mining operations.
The main trends of interest on the basis of work completed by Continental Gold and Grupo de Bullet
geologists to date are as follows:
1. Oro Verde trend: Two small mines define approximately 300m of strike length of a 0.7-1.0m vein
system. Sampling of these mines completed by Continental Gold gave an average grade of 19.1 g/t Au.
Additional abandoned mine workings along this trend indicate a minimum trend of 500m.
2. Machuca trend: Development of the Machuca trend was commenced by Continental Gold in 2007 and
continued by Minera Four Points S.A. and Grupo de Bullet. The Machuca trend includes the El Mango 1
& 2, Higueron and Aurora mines defining over 700m of trend.
3. Aparecida trend: Located 3 km to the east of the Machuca trend, defined by the Aparecida group of
mines, Rica mine and potentially Amansaguapos and Mazamorros mines giving a potential trend of up to
4 km.
4.
Primavera trend: A more formal abandoned mine operation.
5. Limoncito trend: Central in the Zaragoza district, with a north--‐south trend of small
mining operations and one major trackless access tunnel.
6. Diamantina trend:
Potentially an extension of the El Limon vein that includes the
Diamantina and Delirios mines.
A regional exploration program across the Zaragoza district was completed by Continental Gold between
2007 and 2008. This program targeted the identification of existing vein trends and new areas.
September 15, 2015
Page 93
βETA
Figure 23.1
Mines in the Vicinity of El Limon
September 15, 2015
Page 94
βETA
Figure 23.2
Structural Map Showing Veins in Zaragoza – Segovia Trend
September 15, 2015
Page 95
βETA
Figure 23.3
Structural Map of Adjacent Properties
September 15, 2015
Page 96
βETA
24.0 OTHER RELEVANT DATA AND INFORMATION
Not applicable
September 15, 2015
Page 97
βETA
25.0 INTERPRETATION AND CONCLUSIONS
The El Limon Project is a property of merit with a rich history of mining. The grade of gold ore that has
been extracted over the years is very high, at over 20 grams per tonne. Recent grades mines are
substantially lower, between 5-10 grams per tonne. This indicates that the known high grade zones have
been substantially depleted. Additional exploration will be required to delineate future mine resources and
reserves.
Mining operation can continue within the known confines of the El Limon vein for a limited number of
years. Determining the location of the vein on the south side of the Leonel fault will add substantial upside
to the project.
There are no demonstrated mineral resource or reserves for the El Limon project. This adds a level of risk
to the project as there is no reliable estimation of gold grade and tonnage scheduled for production. The
short term risk to the project’s viability is limited due to the advanced nature of the underground operation
and development and the likelihood that suitable mineralization has already been prepared for production.
The long term risk to project viability due to resource or reserve is greater due to lack of development and
exploration in these areas. BETA concludes that additional exploration is warranted to delineate mine
resources and reserves.
The crushing plant and mill are in operational condition. The mill is operating in relatively poor condition
and is currently being upgraded to bring it to good condition.
The Project has potential environmental liabilities due to underground mining activities, past and present,
including:
• Surface disturbance and degradation including deforestation.
• Waste rock and tailings from mining operations.
• Possible contamination of soil and water by mercury, cyanide, arsenic, acid drainage, heavy
metals and solids from mining operations.
From geological evidence and laboratory results, combined with structural-geological analysis we can
conclude:
1. The logging in the field and the laboratory results indicate that in FPM-PZ-03, various zones of
quartz-sericitic alteration were intersected between 11 and 14m; followed by a zone of intense
silicification in a dark colored rock, fine grained, banded, mylonitic and biotitic, until the possible
contact with the vein was intersected between 17.5 and 20m with samples 3 and 4. The samples
assayed 5.6ppm and 4.6ppm respectively.
2. The displacement of the El Limon vein is between 18 and 20 m below Segment 4. This model can
be reevaluated with the new holes programmed from the existing crosscut farther to the east.
3. As well there are other factors which support the existence of Segment 5, of the El Limon vein at
depth, as in the present configuration of known faults, based on the underground mapping and
interpretation, where Zone 4 corresponds to a zone of maximum distention and opening by reverse
faulting, and which caused the maximum enrichment in this block, and whose characteristic show
that possibly this ore chute continues at depth and has moved to the south as shown in Figure 4.
4. The Orogenic style of mineralization shown by the gold bearing quartz structures in the ZaragozaMachuca district, indicates that in these areas of contact between Paleozoic terranes and
transcurrent borders, which are subject to multiple orogenies, there are multiple metamorphic
events, reaching high amphibolite facies and these events have the capacity to generate conditions
of pressure and temperature which generate these types of deposits, and for this reason, there
exists the possibility of multiple quartz veins encased in metamorphic terranes between fault zones
and duplex fault zones with weak dips to the west, and for this reason there could exist multiple
structures similar to El Limon which don’t outcrop and have been cut by the Otu Fault and other
related faults. The only outcrops of the El Limon vein on surface, correspond to a 20 cm vein,
white, milky, oxidized, with druses in the core and a grade of 4ppm Au.
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26.0 RECOMMENDATIONS
BETA recommends a two phase work program:
Phase 1
Expenditure of $954,000 for 6-month mining and development activities;
Expenditure of $1,750,000 for capital improvements to the mineral processing facilities and
general site area;
Phase 2
Completion of a 24-month mining plan by FPM;
Completion of NI 43-101 compliant resource and reserve estimates
Phase 1
BETA has assisted in preparation of a 6 month mine development plan for FPM: the details and costs are
shown in Table 18.1. Total cost is estimated at approximately $954,000, and 2,870 tonnes of ore are
expected to be extracted in the process of implementation.
Three major goals of this plan are:
1. Repair existing ventilation shaft to provide adequate ventilation to working areas
2. Provide secondary egress from working areas by rehabilitating existing openings; provide
adequate manways, ladders and signs indicating escapeways; replace winch to increase worker
safety.
3. Develop stopes and haulage levels to prepare for future production needs.
The work to be completed in this plan includes:
Rehabilitation of 100 meter ventilation raise
Reactivation of 300 meter shaft from levels 2-4
Replacement of winch, levels 0-6
Development of 150 meters on level 7
Development of 150 meters on level 6 south
Development of new stope on level 7 – preparation for resuing
Rehabilitation of manways and ladders – shaft 0-5
Rehabilitation of raises 5-6 and 6-8
The capital improvements recommended are sufficient to bring the plant back to full operation, eliminating
the use of amalgamation on site. The mill is expected to have a full capacity of 200 tonnes per day.
Ponds and tailing facilities are to be cleaned up. The laboratory is to be upgraded in order to produce
capacity for an appropriate quantity of repeatable determinations for an operation of this type.
Maintenance facilities and other buildings on site are recommended to be improved.
Phase 2
BETA recommends that FPM geologists create a 24-month mining plan in order to assure that exploration
and development proceed well in advance of mining.
FPM mining engineers should complete the calculations of volume and gold grade of the existing known
mineralization to estimate mineral resources and reserves.
September 15, 2015
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27.0 REFERENCES
Cediel, F., Shaw, R. P. & Cáceres, C., 2003. Tectonic Assembly of the Northern Andean Block.
In: Bartolini, C., Buffler, R. T. & Blickwede, J., eds, The Circum-Gulf of Mexico and the
Caribbean: Hydrocarbon habitats, basin formation, and plate tectonics. American
Association of Petroleum Geologists Memoir 79, p. 815-848.
Cediel, F. & Cáceres, C., 2000. Geological Map of Colombia. Bogotá, Colombia, Geotec Ltda,
3rd edition. 7 thematic maps at 1:1,000,000 scale.
Emmons, W. H., 1937. Gold Deposits of the World. New York & London, McGraw-Hill Book
Company, Inc., 562 p.
Kantor, J. A. & Cameron, R. E., 2013. Technical Report on the Titiribi Project, Department of
Antioquia, Colombia. NI 43-101 technical report by Behre Dolbear & Company (USA), Inc.
for Sunward Resources Limited, 9 September 2013, 187 p.
Kennan, L. & Pindell, J., 2009. Dextral shear, terrane accretion and basin formation in the Northern
Andes: best explained by interaction with a Pacific-derived Caribbean Plate? In: James, K.,
Lorente, M.A. & Pindell, J. (eds), The Origin and Evolution of the Caribbean Plate. Geological
Society of London, Special Publication, Vol. 328, p. 487 - 531.
Lesage, G., Richards, J. P., Muehlenbachs, K. & Spell, T. L., 2013. Geochronology, Geochemistry,
and Fluid Characterization of the Late Miocene Buriticá Gold Deposit, Antioquia
Department, Colombia. Economic Geology, vol. 108, p. 1067-1097.
Manco, J. D. & Dávila Bolívar, C., 2012. Geology Report, Minerales Córdoba S.A.S. Internal
company report, May 2012, 57 p.
Mibex, 2013. Estudio de Magnetometría Terrestre Proyecto “Minerales Córdoba”, Municipio de Puerto
Libertador Bijao, Departamento de Córdoba. Report for Minerales Córdoba S.A.S. by Mibex,
Colombia, March 2013, 42 p.
Parsons, B., 2012. A NI 43-101 Mineral Resource Estimate on the Marmato Project, Colombia,
21 June 2012. Report for Gran Colombia Gold Corp. by SRK Consulting (UK) Limited,
187 p.
Redwood, S. D., 2011. Technical Report for the Córdoba Project, Department of Córdoba,
Republic of Colombia. NI 43-101 technical report for Wesgold Minerals Inc. (now
Cordoba Minerals Corp.), Vancouver, 65 p.
Restrepo, J. J. & Toussaint, J. F., 1988. Terranes and Continental Accretion in the Colombian
Andes. Episodes, vol. 11, p. 189-193.
Shaw, R. P., 2002. A Technical Overview of the El Alacran Gold (Copper, Silver) Project,
Municipality of Puerto Libertador, Department of Cordoba, Colombia. Report for
Sociedad Minera El Alacran S.O.M., 14 p.
Sillitoe, R. H., 2010. Porphyry Copper Systems. Economic Geology, vol. 105, p. 3-41.
September 15, 2015
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Sillitoe, R.H. 2008. Major gold deposits and belts of the North and South
AmericanCordillers: distribution, tectomagmatic setting and metallogenic
considerations; Economic Geology special paper, vol. 103, pp. 663-687.
Sillitoe, R. H., Jaramillo, L., Damon, P. E., Shafiqullah, M. & Escovar, R., 1982. Setting,
Characteristics, and Age of the Andean Porphyry Copper Belt in Colombia. Economic
Geology, vol. 77, p. 1837-1850.
Starling, T., 2012. Structural review of the Cordoba Project, Colombia. Report by Telluris
Consulting Ltd. for Cordoba Minerals Corp., 20 p.
Taylor, B. E., 2007, Epithermal gold deposits, in Goodfellow, W. D., ed., Mineral Deposits of
Canada: A Synthesis of Major Deposit-Types, District Metallogeny, the Evolution of
Geological Provinces, and Exploration Methods: Geological Association of Canada,
Mineral Deposits Division, Special Publication No. 5, p. 113-139.
Vargas, H., 1998. Reservas y potencial en el proyecto El Alacrán, San Juan de Asis, Cordoba,
Colombia. Report by Guacomo Ltda for Sociedad Minera El Alacran S.O.M., 24 p.
Vargas, H., 2001. Reservas Explotables en el Proyecto El Alacrán, San Juan de Asis, Cordoba,
Colombia. Report for Sociedad Minera El Alacran S.O.M.
Vargas, H., 2002. El Alacrán Skarn Deposito de Cobre Oro Plata, Puerto Libertador, San Juan de Asis,
Cordoba, Licencia No. 022-23, Colombia. Independent Reserves Report by Guamoco & Cia
Ltda Minerals Exploration for Sociedad Minera El Alacran S.O.M., October 2002, 50 p.
Vigar, A. J. & Recklies, M., 2012. Mineral Resource Estimate of the Buriticá Gold Project, Colombia.
NI 43-101 technical report by Mining Associates Pty Limited for Continental Gold Limited,
211 p.
Wilson, S. E., 2012. Technical Report, Bellhaven Copper & Gold Inc., La Mina Project,
Antioquia, Republic of Colombia. Report by Scott E. Wilson Consulting Inc. for
Bellhaven Copper & Gold Inc., 15 August 2012, 144 p.
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APPENDIX A
FOUR POINTS MINING S.A.S.
MINING REGISTRY CERTIFICATES
RPP No12011
National Mining Agency
Department of Mining Registry
July 27, 2015
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APPENDIX B
MINING REGISTRY CERTIFICATE
Exploration Concession No 620
National Mining Agency
Department of Mining Registry
May 13, 2011
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APPENDIX C
REPORT OF EXISTANCE AND LEGAL REPRESENTATIVE
Camara de Comercio de Bogota
May 15, 2015
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APPENDIX D
CERTIFICATE OF EXISTANCE AND REPRESENTATION
Camara de Comercio de Medellin para Antioquia
April 15, 2015
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EL LIMON PROJECT TECHNICAL REPORT Zaragoza, Antioquia

Transcription

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