October 2014 Technical Report

Transcription

NI 43-101 REPORT ON THE INITIAL RESOURCE ESTIMATE FOR THE
SAN LUIS DEL CORDERO PROJECT
DURANGO STATE, MEXICO
LOCATION
CENTERED NEAR NAD27 MEXICO UTM ZONE 13
567524 E
2812900 N
Lat: 25°25’58”N Long: 104°17’20”W
PREPARED FOR
PROSPERO SILVER CORP.
900 - 900 West Howe Street
Vancouver, B.C.
Canada V6Z 2M4
PREPARED BY
TERENCE WESLEY HODSON, P.GEO.
HODSON GEOLOGICAL LTD.
12426 23rd Avenue
Surrey, B.C. V4A 2C4
Effective Date: October 1, 2014
1
1.0 SUMMARY ..................................................................................................................................... 6
1.1 Conclusions and Recommendations .............................................................................................8
1.2 Budget ...........................................................................................................................................8
2.0 INTRODUCTION AND TERMS OF REFERENCE ..................................................................... 8
2.1 Terms of Reference and Purpose ...................................................................................................9
2.2 Source of Information and Data.................................................................................................... 9
3.0 RELIANCE ON OTHER PROFESSONALS……………….......................................................... 9
4.0 PROPERTY DESCRIPTION AND LOCATION ………………………......................................10
4.1 Property Area...............................................................................................................................10
4.2 Property Location........................................................................................................................11
4.3 Description of Claims……………............................................................................................. 12
4.4 Claim Title and Agreements………........................................................................................... 13
4.5 Legal Survey ............................................................................................................................... 13
4.7 Environmental Liabilities and Surface Access ............................................................................13
4.8 Work Permits…………. ............................................................................................................ 14
5.0 ACCESSIBILITY, LOCAL RESOURCES, CLIMATE, AND PHYSIOGRAPHY ....................14
5.1 Topography, Elevation and Vegetation ..................................................................................... 14
5.2 Access to the Property and Proximity to Population Center(s) ................................................. 14
5.3 Relevant Climate and Length of Operating Season ...................................................................14
5.4 Availability of Surface Rights, Power, Water and Mining Personnel .......................................15
5.5 Potential Areas for Tailings Disposal, Heap Leach Pads and Plant Sites ..................................15
6.0 HISTORY …..................................................................................................................................15
6.1 Previous Ownership ...................................................................................................................15
6.2 Previous Exploration...................................................................................................................16
6.3 Historic Production and Resource Estimates .............................................................................17
7.0 GEOLOGICAL SETTING ............................................................................................................ 24
7.1 Regional Geological Setting ...................................................................................................... 24
7.2 Property Geology……………………………………………………………………………….25
7.3 Mineralized Zones……………………...................................................................................... 26
8.0 DEPOSIT TYPES……………...................................................................................................... 28
8.1 Mineral Deposit Type…………………………………………………………………………...28
8.2 Geological Concepts Used For Exploration of the Property …...................................................29
8.3 Mineralization …………………….. ..........................................................................................29
9.0 EXPLORATION …………………...............................................................................................31
9.1 Geochemical Sampling ...............................................................................................................31
9.2 Induced Polarization Geophysical Program..……………………………...................................31
9.2 Discussion of Induced Polarization Results ............................................................................... 33
10.0 DRILLING .................................................................................................................................. 33
9.1 Drillhole Orientation…................................................................................................................40
11.0 SAMPLE PREPARATION, ANALYSES AND SECURITY.................................................... 40
11.1 Sample Preparation and Analytical Procedures……………………………………………….40
11.2 Review of Quality Assurance/Quality Control..........................................................................41
11.2.1 Standards………………………………………………………………………………….41
11.2.2 Duplicates…………………………………………………………………………………44
11.2.3Blanks……………………………………………………………………………………...46
11.3 Core Storage Facility……………….........................................................................................47
11.4 Discussion..……………………………………………………………………………………48
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12.0 DATA VERIFICATION ..............................................................................................................48
12.1 Quality Control and Data Verification ......................................................................................48
12.2 Verification of Sampling and Analytical Data...........................................................................48
12.3 Discussion..……………………………………………………………………………………49
13.0 MINERAL PROCESSING AND METALLURGICAL TESTING ............................................50
14.0 MINERAL RESOURCE ESTIMATES .......................................................................................50
14.1 Drillhole Database……………………………….....................................................................50
14.2 Project Parameters……………………………….....................................................................50
14.3 Specific Gravity………………………………….....................................................................51
14.4 Compositing………………………………..…….....................................................................51
14.5 Geological Interpretation….......................................................................................................51
14.6 Block Model Validation………………………….....................................................................52
14.7 Resource Classification………………......................................................................................53
14.8 Mineral Resource Statement…………………..........................................................................54
15.0 ADJACENT PROPERTIES .........................................................................................................57
15.1 Relevant Data on Adjacent & Nearby Properties......................................................................57
16.0 OTHER RELEVANT DATA AND INFORMATION ................................................................57
17.0 INTERPRETATION AND CONCLUSIONS .............................................................................57
18.0 WORK RECOMMENDATIONS …............................................................................................58
19.0 REFERENCES …………………………………………….........................................................60
20.0 DATE AND CERTIFICATE…....................................................................................................62
3
LIST OF TABLES
Table 1.1 Mineral Resource Statement, San Luis del Cordero Project.…………………….…………...7
Table 1.2 Budget…………………………………………………………………………….………..…8
Table 4.1 Pertinent Claim (Mining Concession) Data for San Luis Project…………………………...12
Table 4.2 Prospero Shares Issuable to Altiplano Under Option Agreement…………………………...13
Table 10.1 Drillhole Collars……………………………………………………………………………33
Table 10.2 Assay Intervals Used in the Resource Estimation…………………………….…………...34
Table 12.1 Drill Core Check Samples from the San Luis Property…………………………………....48
Table 12.2 Drill Hole Collar Checks from the San Luis Property……………………………………..49
Table 14.1 SRLC Block Model Setup………………………………………………………………….50
Table 14.2 3D Wireframe Statistics……………………………………………………………………52
Table 14.3 Interpolation Parameters…………………………………………………………………...52
Table 14.4 Global Model Comparisons………………………………………………………………..53
Table 14.5 Block Model vs Composites……………………………………………………………….53
Table 14.6 Mineral Resource Statement, San Luis del Cordero Project……………………………….54
Table 18.1 Budget for Recommended Drill Programs......……………………………………………..59
LIST OF FIGURES
Figure 4.1 Location Plan for San Luis Del Cordero Project, Durango State, Mexico…………………10
Figure 4.2 General Location of SLDC Project, Mexico……………………………………………….11
Figure 4.3 Location of SLDC Project Mining Concessions Durango State, Mexico………………….12
Figure 6.1 Geology of the SLDC………………………………………………………………………18
Figure 6.2 SW-NE Section in the Plane of Apex Drill Holes SL-0-1 & 2…………………….………19
Figure 6.3 NE-SW Section in the Plane of Apex Drill Holes SL-0-3…………………………………20
Figure 6.4 NE-SW Section in the Plane of Prospero Drill Holes PSLC-11-14, PSLC-11-16,
and Silver Standard Hole SSLC-13-20……………………………………………………21
Figure 6.5 N Section in the Plane of Prospero Drill Holes PSLC-10-1 and PSLC-10-12………….….22
Figure 6.6 N Section in the Plane of Silver Standard Drill Holes SSLC-13-21 and SSLC-14-32….…23
Figure 6.7 NW-SE Section Showing Santa Rosa Mine Workings and Altiplano Sampling
Above Water Table…………………………………………………………………………24
Figure 7.1 Generalized Geology of SLDC, Durango State, Mexico…………………………………..27
Figure 7.2 Stratigraphic Section for the SLDC Project Area………………………………………….28
Figure 8.1 Outcrop map showing General geology of the project……………………………………..30
Figure 9.1 Location Plan for Surveyed IP Grid………………………………………………………..32
Figure 11.1 Standard CDN-FCM-5……………………………………………………………………42
Figure 11.2 Standard STD-15………………………………………………………………………….43
Figure 11.3 Ag-Cu-Zn Duplicates…….………………………………….…………………………….45
4
Figure 11.3 Ag-Cu-Zn Blanks………...………………………………….…………………………….46
Figure 14.2 Santa Rosa Vein and Santa Rosa East Skarn Resource Classification……………………55
Figure 14.2 Santa Rosa Vein and Santa Rosa East Skarn AgEq Grade Distribution………………….56
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1.0 SUMMARY
Prospero Silver Corp. (“Prospero” or “The Company”) through its Mexican subsidiary Minera
Fumarola, S.A. De C.V. (“Fumarola”) holds an option to earn 100% in the San Luis Del Cordero
Project (“SLDC” or “Cordero”). The property is located immediately north of the town of San Luis
del Cordero, Durango State, Mexico and consists of six (6) mineral concessions totaling 2825
hectares. On August 29, 2008 P rospero signed a letter of agreement with Exploraciones Del
Altiplano, S.A. Del C.V. (“Altiplano”) providing an option for Prospero to earn a 100% interest in
Altiplano’s San Luis del Cordero project.
Subsequently on May 14, 2009 a nd July 10, 2009 t he agreement was amended. The final
terms of the Option Agreement and amendments provide Prospero the ability to earn a 100% interest
in the San Luis del Cordero property. Prospero will issue 50,000 shares on or before September 13,
2014; 100,000 shares on or before March 13, 2015; 100,000 shares on or before September 13, 2015;
and 600,000 shares on or before March 13, 2016 a s outlined in Table 6.2. The Mexican partner
(Altiplano) will receive 2% NSR which can be bought down to 1.5% by paying US$500,000 within 3
years of the decision to exercise the option.
The SLDC area is underlain by a basement of Jurassic age La Casita Formation overlaid by
limestone and shales of the Cretaceous Aurora/Cuesta del Cura, Indidura and Caracol Formations.
SLDC covers a contact zone between granodioritic, dioritic, quartz porphyry, feldspar porphyry and
quartz-feldspar porphyry intrusive rocks and siltstone, limestone and shale. The property hosts both
vein type and skarn copper-silver-zinc mineralization. Prospero’s mapping has shown that large areas
close to the intrusive contact zone have been recrystallized to hornfels and skarnified and that more
distal jasperoids have formed along structures and replaced limy sedimentary rocks.
The principle mineralized structures, Santa Rosa Vein and Santa Rosa East Skarn have been
traced for over a kilometer with trends varying up to 30° from the main east-west trend. These
structures have close association with the north border of the main complex stock. Multiple veins and
skarn occur in each structure varying in width from one to several 10’s of meters. The Santa Rosa
East Skarn and additional known skarn style mineralized zones, La Puerta and El Canal, envelope the
intrusive complex along its northern, eastern and southern borders, for a total length in the order of 5
kilometers and is referred to as the “Skarn Rim Zone”.
A number of silver bearing replacement and skarn bodies occur in similar settings in other
deposits near the eastern edge of the Sierra Madre (Figure 4.1)
The San Luis Del Cordero Project area has a number of historical old shafts and old mine
workings that exploited tetrahedrite and base metal bearing vein structures. The first formal operation
on the SLDC took place in the Santa Rosa Mine and targeted the near surface extent of the Santa
Rosa Vein. Mining was carried out by Torreon-based Compañia Minera del Carmen, SA de
CV with records suggesting extraction in the order of 70,000 tons during the 1950’s and 1960’s with
three hundred 270 t onne lots), shipped directly to the now inactive Industrial Minera Mexico SA
(IMMSA) smelter at San Luis Potosi, yielding 600-700 g/t Ag and 2% to 2.5% copper.
6
Since 2000 four separate exploration programs have been carried out. In overburden covered
areas surface sampling, Induced Polarization (IP), air borne magnetic and electrical magnetic
geophysics surveys were conducted to trace vein and skarn structures. Four drill programs totaling
11,436.42 meters in 43 drill holes have been completed. Drilling has been focused on the known or
extensions of the Santa Rosa vein and Santa Rosa Skarn mineralized structures.
The SLDC deposits are classified under the categories of Indicated and Inferred in accordance
with Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards. Table 1
lists the estimated resources for both mineralized zones as of October 1, 2014. Resources were
calculated using Inverse Distance cubed (ID3). Resources are reported at a silver-equivalent (AgEq)
cut-off grade of 85 g/ t using the following metal prices: silver= $19/oz, copper= $3.00/lb,
zinc=$0.90/lb.
The known mineralized zones have not been fully delineated by the current drilling and
remain open in several directions. Additionally the property has potential for new mineralized zones
such as the El Canal and La Puerta targets.
Table 1.1 Resource Statement, San Luis del Cordero Project, October 1, 2014
AgEq3
Ag
g/t
g/t
Class
Zone
TONNES
Cu
%
Zn
Ag
AgEq4
%
ozs
Ozs
Sta. Rosa vein
Indicated
31,500
1022.6
827.8
1.21
1.98
838,366
1,035,663
Sta. Rosa East
skarn
Indicated
631,125
200.8
86.1
0.76
1.02
1,747,094
4,075,335
Total
Indicated
662,625
239.9
121.4
0.78
1.06
2,585,460
5,110,998
Sta. Rosa vein
Inferred
218,437
955.4
716.4
1.12
3.62
5,031,291
6,710,075
Sta. Rosa East
skarn
Total
Inferred
2,566,875
214.9
95.7
0.72
1.26
7,897,950
17,734.488
Inferred
2,785,312
273.0
144.4
0.75
1.45
12,929,241
24,444,562
1.
2.
3.
4.
5.
Mineral Resources are not Mineral Reserves as there are insufficient studies to demonstrate economic viability.
It cannot be assumed that all or any part of an Inferred Resource will be upgraded to an Indicated or Measured
Resource as a result of continued exploration.
Resources are reported at a silver-equivalent cut-off grade of 85 g/t.
AgEq = Ag + [Cu% x 22.046 x Cu price x 31.103/Ag price + Zn% x 22.046xZn price x 31.103/Ag price]. Metal prices
used in the formula: silver = US$19/oz, copper = US$3.00/lb, Zn = US$0.90/lb.
AgEq ozs = AgEq grams/31.103
7
1.1Conclusions and Recommendations
The Santa Rosa Vein, located at depth and along strike from the old Santa Rosa Mine
workings, is a structurally controlled narrow vein zone hosting highly anomalous silver grades with
associated copper and zinc mineralization. The Santa Rosa East Skarn deposit is located east of the
Santa Rosa Mine workings along the contacts between quartz feldspar porphyry and granodioritic
bodies with limy Mesozoic sedimentary units hosting silver-copper-zinc mineralization. Both
deposits remain open along strike and to depth.
Previous drill results and the success of the exploration programs justify further drilling of the
SLDC as follows in priority order.
1.
2.
3.
4.
5.
6.
Extension to depth and to the west in the Santa Rosa Vein mineralized zone.
Upgrading the Santa Rosa Vein deposit to Measured and Indicated categories.
Extents and definition of the Santa Rosa East Skarn.
Extension at depth, east and west of drill hole PSLC-17 in the El Canal target.
The extension at depth of La Puerta skarn.
The blind skarn adjacent to and in the HW of the Santa Rosa Vein.
1.2 Budget
Preliminary budget for the recommended work outlined above is shown in Table 1.2.
Costs shown are all inclusive and cover associated costs required to support the recommended 12,500
meter drilling and sampling program. All costs are in US dollars.
Table 1.2 Budget for Recommended Drill Programs
Type
Phase 1
Description
Santa Rosa Vein extension and
definition drilling
Phase 2
Santa Rosa East Skarn extensions, 10,000 meters
definition and exploration targets
Total
Drilling
Total Length
2,500 meters
12,500 meters
Estimated Cost
US $500,000
US $2,000,000
US $2,500,000
2.0 INTRODUCTION AND TERMS OF REFERENCE
This T e c h n i c a l R e p o r t was prepared for Minera Fumarola SA de CV the wholly
owned Mexican subsidiary of Prospero Silver Corp. (“Prospero” or “The Company”). Prospero is
listed under the symbol PSL on the Toronto Stock Exchange (TSX) Venture Exchange.
8
Prospero’s head office is located at Suite 900 900 Howe St., Vancouver, BC, Canada, V6Z 2M4.
2.1 Terms of Reference and Purpose
Hodson Geological Ltd. was retained by Fumarola to produce an initial resource estimate on
the San Luis del Cordero property. The report has been prepared in compliance with the requirements
of National Instrument 43-101 and Form 43-101F1, and is for supporting documentation to be filed
with the relevant securities commissions and the TSX Venture Exchange.
Terence Wesley Hodson, P.Geo. is the qualified person for this report. The writer personally
examined the geological setting of the SLDC area on August 15, 2014 and reviewed the geological
setting with Prospero’s exploration manager, geological engineer Martin Soto Moran. In addition, the
writer examined and sampled core at Prospero’s secured core splitting and storage facility in San Luis
Del Cordero. The writer has examined a number of properties in Sonora, Coahuila, Baja California
Sur and Michoacán, Mexico for other TSX and TSX venture companies, but has no previous
experience on the SLDC prior to his August 15, 2014 property examination.
2.2 Source of Information and Data
All reports and documents used for this report were provided by Fumarola (Prospero) in the
form of digital files. Other supporting documents are listed under the References and Sources of
Information section of this report. Data was collected primarily by geological and geophysical
contractors and employees of Prospero and Silver Standard, previous operators and Consejo de
Recursos Minerales (CRM) personnel. The writer’s review of mapping, drill sites and core handling
and storage indicated that previous operators u sed competent personnel for fieldwork and
sampling and Hochschild, Prospero Silver, and Silver Standard used certified laboratories for
analytical work. The Induced Polarization geophysical program conducted by SJ Geophysics Ltd. for
Prospero is outlined in a report entitled “Logistical Report for Prospero Silver Corp. Induced
Polarization Survey on the San Luis Del Cordero Project” (Dobrescu and Ko, 2008) and interpreted
in a draft report entitled, “3D Induced Polarization on the San Luis del Cordero Project” (Rastad and
Dobrescu, 2008).
3.0 RELIANCE ON OTHER PROFESSIONALS
The writer is required by NI 43-101 to include description of the property title and terms of
legal agreements that are presented in the following sections. The writer has relied entirely on
property agreements and title documents provided by Prospero in order to provide summaries of title
and ownership. Property agreements and title documents are legal matters and should be reviewed by
Prospero’s legal counsel. In Mexico, claim locations are established by a registered Mexican mineral
claim surveyor and such plans are equivalent to a legal survey of the claim area.
9
4.0 PROPERTY DESCRIPTION AND LOCATION
4.1 Property Area
The SLDC, consisting of 6 exploration concessions covering 2825.0 hectares Table 4.1;
Figures 4.1, 4.2 & 4.3) is situated in Durango State and centered near NAD27 MEXICO UTM
ZONE 13 coordinates 567524E and 2812900N and geographic coordinates
25o 25’ 58” N latitude and 104 o 17’ 20” W longitude.
Figure 4.1 Location Plan for San Luis Del Cordero Project, Durango State,
Mexico.
(Prepared by Prospero, 2008)
10
4.2 Property Location
The SLDC Project is located about 150 kilometers NNE of Durango City, Durango State,
Mexico and about 85 kilometers west of Torreon, Coahuila State, Mexico. The project area can be
reached from Durango City or Torreon via Federal highways 40 (Durango-Torreon) and then
westerly on Highway 34 (also Highway 39 on Durango map) to Nazas and northerly for 23km on a
secondary paved road that passes through the town of San Luis del Cordero, Durango Mexico.
Alternately, Highway 45 north from Durango for about 160km to Hidalgo del Parral and east on
Highway 34 to Nazas, avoids the toll road.
The San Luis Del Cordero municipality is a small town with a population of 2,000 people, all services
(manpower, electrical, water, general goods) are available. The town also offers cell phone service and
low speed internet.
Figure 4.2 General Location of SLDC Project, Mexico.
11
4.3 Description of Claims
The SLDC, consisting of 6 claims or mining concessions covers about 2,825.0 ha in the
Municipality of San Luis del Cordero, State of Durango, Mexico was optioned by
Prospero in 2008 (Table 4.1) .
Table 4.1 Pertinent Claim (Mining Concession) Data for San Luis Project.
CLAIM
ISSUED
EXPIRY
Claim Taxes
2º half 2014
(pesos)
Claim Taxes
1º half 2015
(pesos)
TITLE
HECTARES
TECOLOTES
194984
25.00
30 Jul. 1992
29 Jul. 2042
3,231
3,231
CORDERO II
218972
175.00
28 Jan. 2003
27 jan.2053
22,617
22,617
CORDERO III
223678
129.00
2 Feb. 2005
01 Feb. 2055
9,474
16,672
CORDERO
222485
320.00
16 Jul. 2004
15 jul. 2054
23,501
41,357
CORDERO III
221970
129.00
22 Apr. 2004
21 Ap. 2054
16,672
16,672
CORDERO IV
228447
2047.00
22 Nov. 2006
21 Nov. 2056
150,332
150,332
225,827
250,881
2,825.00
Figure 4.3 Location of SLDC Project Mining Concessions Durango State,
Mexico.
12
The 2005 Mexican Mining Regulations, effective in January 2006, provide for all concessions
to be valid for a period or 50 years. Annual taxes, due in January and June of each year, vary from
about US$0.45 in the first year to US$9.88 per hectare in year eleven of exploration. Property
holding costs for June to December 2014 are about US$17,265.00 and will increase to about
US$27,913.00 as titles mature.
4.4 Claim Title and Agreements
The SLDC property consists of 6 claims in Durango State, Mexico. On August 29, 2008,
Prospero, through a Mexican subsidiary Minera Fumarola and Exploraciones Del Altiplano, S.A. Del
C.V. (“Altiplano”) entered into an exploration and option agreement, as amended May 14, 2009 and
July 10, 2009 (the “Cordero Option Agreement”), providing an option for the Company to earn a
100% interest in the Cordero Property, subject only to a 2.0% net smelter royalty interest on
commercial production payable to Altiplano. After exercise of option Prospero may, within 3 years,
purchase 0.5% of the NSR for a payment of US$500,000. In order to maintain the Cordero Option
Agreement in good standing and exercise such option, Fumarola must issue shares of Prospero (Table
4.2) to Altiplano.
Table 4.2 Prospero Shares Issuable to Altiplano Under Option Agreement.
ISSUE DATE
September 13, 2014 (issued)
March 13, 2015
September 13, 2015
March 13, 2016
NUMBER OF SHARES
50,000
100,000
100,000
600,000
4.5 Legal Survey
Mexican mining law requires a mineral claim be established by a registered Mexican Mineral
Claim Surveyor. Prospero compiled a plan of the SLDC property concessions (Figure 4.3) from the
registered surveyor’s plots. Monuments were observed in the field establish the location of the
property as shown on Figure 4.3 claim locations but no attempt was made to evaluate the legal title to
claims shown on Figure 4.3.
4.7 Environmental Liabilities and Surface Access
The writer is not aware of any environmental liabilities or social issues related to the San Luis
Project area. The area is used for grazing by local ranchers and care must be taken to insure safety of
livestock.
The SLDC property is mainly situated on privately held land and permission must be obtained
13
to access the land. Altiplano and previous exploration companies obtained permission to access the
claim area for mapping and sampling at no cost, the permission for access the properties for drilling
purposes was obtained at a cost of $3,000.00 Mexican pesos per each drill hole. Prospero
management believes that access permission will not be a problem. Some land purchase may
eventually be required for mill and disposal sites.
4.8 Work Permits
All exploration activities carried out on the property are in compliance with relevant
environmental permitting requirements.
5.0 ACCESSIBILITY, LOCAL RESOURCES, CLIMATE, AND
PHYSIOGRAPHY
5.1 Topography, Elevation and Vegetation
The SLDC project is located in the Eastern Sierra Madre Occidental Physiographic subprovince near the eastern edge of the Mesa Central Province (Central Plateau Province) near the
boundary with the Sierra Madre Oriental. In the SLDC area jasperoid alteration and dioritic and
granodioritic bodies form resistant areas which result in modest relief of about 200 meters with
elevations ranging from about 1500 meters and 1700 meters with old workings mainly between
1500m and 1600m.
San Luis is situated in an area with various bushes, shrubs and cactus. Natural grass meadows
are used to graze cattle and other livestock. Wild fauna is not abundant but wild turkeys and several
other varieties of birds, rabbits, coyote, lizards, white tail deer, and rattlesnakes are seen.
5.2
Access to the Property and Proximity to Population Centers
The project area can be reached from Durango City via Federal highways 40 (DurangoTorreon) and then westerly about 50km on highway 39 to Nazas and then northerly for 23km on a
good secondary road to San Luis del Cordero (Figure 4.2). Access to the project area requires twowheel drive but local trails and tracks require four wheel drive truck or ATV. Permission for local
access may be obtained from local ranchers that are kept informed of exploration activity.
5.3
Relevant Climate and Length of Operating Season
The climate in the region is characterized by elevated temperatures during the summer months
with cooler temperatures in the winter months producing some freezing from December
through February. The area is semi-arid with maximum temperatures over 30ºC during the summer
season. The rainy season extends from June through October with occasional rain during December
14
and January. The average annual precipitation is about 50mm but during wet years rainfall reaches
250 mm.
5.4 Availability of Surface Rights, Power, Water and Mining
Personnel
The SLDC is not part of an environmental reserve or protected area and Estudio de Impacto
Ambiental and Cambio de Uso de Suelo (Environmental Impact and Soil Use Change) permits are
not required for early stage exploration and drilling. Surface rights are controlled by local ranchers
and farmers and they should be kept informed of planned exploration. Roads should be planned to
assist locals with access and gated and/or cattle guarded as necessary. Water and power are available
in San Luis Cordero.
Drilling companies and mining contractors are available in Durango, Zacatecas and Fresnillo
and other areas of Mexico and San Luis del Cordero provides a local labor pool. Mining personnel
are available and they have been trained to work at local mines in Zacatecas and Durango States.
5.5 Potential Areas for Tailings Disposal, Heap Leach Pads and Plant
Sites
The property covers a number of flat meadow or basin areas which would be suitable for
tailings disposal and plant sites. Land is relatively inexpensive and sufficient areas could be
purchased for all mining needs.
6.0 HISTORY
Systematic mining in the Altiplano of Mexico started in pre-colonial times with mines in the
Velardeña mining district and in the Mapimi mining district located or re-located by Spanish
prospectors late in the 16th century. The presence of mineralization near San Luis del Cordero was
probably also known to the early Spanish prospectors. The mineralization at the SLDC would have
generated minimal interest because it was not amenable to silver recovery by simple amalgamation.
The first formal operation on the SLDC took place in the Santa Rosa Mine and was carried
out by Torreon-based Compañia Minera del Carmen, SA de CV with records suggesting
extraction in the order of 70,000 tons during the 1950’s and 1960’s with 300 ton lots, shipped directly
to the now inactive Industrial Minera Mexico SA (IMMSA) smelter at San Luis Potosi, yielding 600700 g/t Ag and 2% to 2.5% copper.
6.1 Previous Ownership
Compañia Minera del Carmen controlled the property in the 1960’s and 1970’s and following
completion of mining in the Santa Rosa Mine, the concessions were relinquished. The Tecolotes
concession, covering the Santa Rosa Mine has been held since July 1992 and Exploraciones del
15
Altiplano, SA de CV initially filed claims in the district in 1996 and the “Tecolotes” claim was
optioned in 1999 and purchased in 2002. Altiplano finalized consolidation of all ground in the district
by claiming of the Cordero IV concession in November 2006. On May 12, 2006 Minera Hochschild
Mexico, SA de CV (“HC”) and Altiplano signed an exploration option agreement allowing HC to
obtain rights to the project by spending US$2,700,000 in four years. After completing sampling of
workings, geological assessment, and 6 diamond drill holes totaling 1,477.40m, the property was
returned to Altiplano in 2007. In August 2008 Exploraciones del Altiplano and Prospero Silver
through its subsidiary Minera Fumarola signed an option agreement to acquire 100% of the SLDC
concession for cash payments, share payments and US$1,650,000.00 work commitments. I n 2013
the Project was subject to Join Venture Agreement with three parties, Exploraciones del Altiplano,
Prospero Silver and Silver Standard. In March 2014 Silver Standard returned the option to Prospero.
The original contract between Prospero and Altiplano has been amended to require Prospero to issue
to Altiplano 100,000 shares on or before March 13, 2015; 100,000 shares on or before September 13,
2015; and 600,000 shares or before March 13, 2016 for 100% of the concession.
6.2 Previous Exploration
During the year 2000 Apex Silver Mines Ltd. completed diamond drill holes SL-001, SL-002,
SL-003 under the Sta. Rosa mine (Figures 6.1, 6.2, and 6.3), and commissioned detailed mapping of
the central and western portion of the district. During 2007 Minera Hochschild Mexico, SA de CV
(“HC”) carried out a 6 hole diamond drill program at the Sta. Rosa mine area (2 holes), the India
Bonita target zone (3 holes) and NE Veta structure (1 hole) (Figures 6.1, 7.1, 8.1). Altiplano
conducted underground sampling of the Santa Rosa workings above the water table at about 40m
shaft depth. Pierce points for historic drill holes below the Santa Rosa workings are shown in Figure
6.7 a longitudinal section along with the location and results of channel samples results. Altiplano’s
sampling showed the Santa Rosa vein to be a generally narrow vein with swells to 2.0m containing
strong to high-grade values in silver, copper and zinc plus elevated but commercially non-significant
values in Pb and Mo.
In August 2008 P rospero Silver through his subsidiary Minera Fumarola cmpleted detailed
surface geologic mapping and sampling and an IP geophysical survey. In 2010 a nd 2011 P rospero
completed two diamond drill hole programs. The drilling program delineated a high grade silver ore
shoot with modest width in Santa Rosa Vein and in following up of HC’s skarn intercept in drill hole
HCSL-1 outlined a p olymetalic (Ag-Cu-Zn) mineralized skarn deposit in Santa Rosa East skarn
structure. Hole PSLC-11-17 intersected a polymetalic mineralized structure in the Canal Target Zone.
In 2013 Silver Standard reviewed the previous information, carried out rock sampling in the
jasperoid zone, completed a ground IP geophysical survey and executed a 15 diamond drill hole
program. Three drill holes intersected the Santa Rosa Vein, all three intersected high grade silver
values (Figure 6.4 SSLC-13-14, SSLC-13-16). Drillhole SSLC-13-20 intersected a strong 70 m wide
unmineralized blind skarn body located in the hangingwall of the Santa Rosa Vein. Five drill holes
drilled along the eastern extension of Santa Rosa East skarn extended the mineralized skarn an
additional 250 meters in that direction. Five holes drilled to intersect IP anomalies in the west zone of
the property below the jasperoid zone and along the India Bonita trend at the NE sector of the
property, failed to find significant mineralization. Two drill holes (SSLC-13-28 and SSLC-13-30)
located to the east of the Santa Rosa E skarn trend intersected a zone of quartz porphyry dikes with an
associated low temperature style mineralization in quartz veins, which represent possible peripheral
16
mineralization of the La Puerta skarn target.
6.3 Historic Production and Resource Estimates
Altiplano used production records to estimate historic production of about 70,000 tonnes
yielding 650 g/t Ag and 2.5% Cu. (The records are no longer available to Prospero and
the vendor’s historic production figures, presented as property information, have not
been verified by the writer or Prospero and should not be relied upon). Workings and dumps
present at the Santa Rosa Mine and India Bonita Mines suggest that the 70,000 tons is a reasonable
estimate of material removed from the property and it is reasonable to expect that higher grade
material was removed, resulting in lower grades for material left in the Santa Rosa Mine dump
(Figure 6.7).
The writer is unaware of any previous resource estimates having been carried out on the Santa
Rosa Vein or Santa Rosa East Skarn mineralized structures.
17
Figure 6.1 Geology of the SLDC showing locations of veins
and Apex, HC, Prospero and Silver Standard drill holes. A number
of adits and shafts were used to exploit the Santa Rosa
and India Bonita structures
(Prepared by Prospero, 2014).
18
Figure 6.2. SW-NE Section in the Plane of Apex Drill Holes SL-0-1 & 2.
(Section Looking NW; Prepared by Prospero, 2014)
19
Figure 6.3. NE-SW Section in the Plane of Apex Drill Holes SL-0-3.
20
Figure 6.4. NE-SW Section in the Plane of Prospero Drill Holes PSLC-11-14,
PSLC-11-16, and Silver Standard Hole SSLC-13-20, Testing Santa Rosa vein.
21
Figure 6.5. N Section in the Plane of Prospero Drill Holes PSLC-10-1 and PSLC10-12, Testing Santa Rosa East Skarn.
(Section Looking N; Prepared by Prospero, 2014)
22
Figure 6.6. N Section in the Plane of Silver Standard Drill Holes SSLC-13-21 and
SSLC-14-32, Testing the Santa Rosa East Skarn.
(Section Looking N; Prepared by Prospero, 2014)
23
Figure 6.7 NW-SE Section Showing Santa Rosa Mine Workings and Altiplano
Sampling Above Water Table.
7.0 GEOLOGICAL SETTING
7.1 Regional Geological Setting
The geology of Durango State, Mexico is dominated by extensive volcanic fields that form
one of the world’s largest deposits of rhyolitic ignimbrite and tuff. The volcanic field has been
divided into an early, Lower Volcanic Group (LVG) consisting mainly of intermediate composition
volcanic and volcaniclastic rocks and a later (Oligocene), Upper Volcanic Group (UVG) consisting
of acid volcanic rocks.
24
Early Tertiary to Mesozoic age, sedimentary rocks occur in the eastern part of Durango State
and as windows in the extensive Tertiary volcanic fields. Locally younger intrusive bodies, quartz
feldspar porphyry, dioritic or granodioritic units, intrude limy sedimentary rocks and result in areas of
skarn development as seen on the SLDC property.
7.2 Property Geology
The SLDC property is located in the Sierras y Valles Province (Basin and Range) of Durango
with the property geology described as part of a regional mapping project by the CRM (Consejo de
Recursos Minerales). The local geology has been mapped by Apex, Altiplano, Hochschild and
Prospero and field checked by Prospero and the writer. A plan of the SLDC property geology
compiled by Prospero is presented as Figure 7.1. This outcrop geological map shows areas of
silicification, jasperoid alteration and skarnification (the “Skarn Rim Zone). A stratigraphic section
for the SLDC is presented as Figure 7.2.
The SLDC is underlain by Mesozoic and Tertiary clastic sedimentary rocks and limestone
covered by large areas of recent alluvium. The oldest sedimentary rocks consist of interbedded shale,
sandstone and limestone of the Jurassic La Casita Formation. These Jurassic sedimentary rocks
occupy the core of a recumbent anticline that passes through the central part of the SLCD property
and are the primary host rocks for the Santa Rosa, Santa Rosa East and the India Bonita vein
structures. These sedimentary rocks are hornfelsed near intrusive contacts and vein structures.
Cretaceous Aurora/Cuesta formation massive limestone and thick bedded dolomite with minor
interbedded shale overlie the Jurassic sedimentary rocks. Tertiary Ahuichila Formation conglomerate
is found locally.
The Tertiary conglomerate is overlain by rhyolitic tuff of the Cerro Prieto Formation in
western areas of the SLDC property. Quaternary Basalt overlies the rhyolites east of the main access
road. Recent alluvial cover is the most extensive unit on the SLDC.
The geological picture is further complicated by a recumbent fold with a northerly trending
axis centered on the SLDC. Thrust fault, normal faults and fracture zones complicate the distribution
of units and cause segmenting of the geophysical response.
The granodiorite is equigranular, composed of plagioclase, biotite, quartz and variable
amounts of K-feldspar. The quartz porphyry dikes consist of angular and small quartz crystals in a
fine grained felsitic groundmass. Quartz-feldspar porphyry consists of large quartz and plagioclase
crystals in a felsic matrix. The feldspar porphyry consists of large euhedral plagioclase crystals in
felsic matrix. A diorite intrusive, composed of medium grained plagioclase and mafic minerals in a
fine grained pyritic groundmass, is found mainly in the NE sector of the project area (Figure 7.1).
Surface mapping indicates the granodiorite is the oldest intrusive and the porphyry dikes and
diorites are younger. An early prograde skarn is primarily structurally controlled, and affects all the
intrusive phases. Retrograde polymetalic and precious metals mineralization occurred mainly after
skarn formation and occurs in veins and stockwork zones hosted in hornfels close to the intrusive
contact as well as in zones of skarnification.
25
7.3 Mineralized Zones
Mineralization is related to skarnified and replacement zones associated with the contact zone
of Cretaceous limy sediments and a h ighly differentiated intrusive complex which includes a
granodioritic stock cut by quartz porphyry, feldspar porphyry, quartz-feldspar porphyry and diorite
dikes of Tertiary age.
Four mineralized structural vein and skarn zones, the Santa Rosa Vein, Santa Rosa East
Skarn, India Bonita vein and Veta NE, have been explored with workings and/or drilling. Modest
exploitation has occurred from the Santa Rosa Mine workings and minor exploitation is
indicated by the smaller workings at the India Bonita Mine. The primary exploration target had been
extensions of the Santa Rosa Vein structure until 2007 w hen Hochschild hole HCSR-2 intersected
skarn style mineralization while looking for the east extension of the Santa Rosa Vein structure.
In the Santa Rosa Mine area silicification or jasperoid alteration occurs along a WNW trend.
Drilling has shown that quartz and carbonate veins with chalcopyrite, pyrite, sphalerite, tetrahedrite
and galena fill several sub-parallel structures in the Santa Rosa Vein. The vein dips 60-80 degrees
south with widths up to two (2) meters true width. Drilling has traced strike and dip extensions of this
structure beneath the old workings for 300 m eters along strike and 200 meters down dip. This
mineralized structure remains open along strike and down dip.
The old workings extend along strike for 170m and down dip from surface to the 1450
elevation. Water table is approximately at the 1500m elevation leaving only the uppermost portion of
the old workings accessible. Historic production from the Santa Rosa Vein was an estimated 70,000
tonnes of direct shipping ore.
Santa Rosa East Skarn occurs along an east-west trending zone located at or near the contact
of the Tertiary intrusive units with Cretaceous limestone or limy sediments. Multiple mineralization
skarnified zones typically occur over widths of 30m to 100m (Figures 6.1 to 6.6) along east-west
trending zones with 60-80°southerly dips. Chalcopyrite, pyrite, sphalerite, tetrahedrite and trace
galena mineralization are found in zones up t o 25 meters true width. Mapping and drilling have
traced the main Santa Rosa East Skarn zone for over 900 meters along the east-west trend and 200
meters down dip. Two drill holes (SSLC-13-28 & 30) located 650 meters along strike to the east of
the Santa Rosa East Skarn also intersected skarn style mineralization (Figure 8.1).
The India Bonita outcrops in the northern portion of the project, trending SW to NE and
dipping 55-60o to the SE. It is a narrow banded to brecciated quartz-calcite vein hosted by altered
sandstone-siltstone-limestone units. Best result returned was from SSLC-13-25 with 110 g/ t Ag,
0.105% Zn over 1.50 meters (Figures 7.1 & 8.1).
Veta NE vein, located NE of the Bonita Vein, is a quartz-calcite skarn structure trending SW
to NE and dipping 75o to the SE. One drill hole tested the structure and returned minor disseminated
chalcopyrite.
26
Figure 7.1 Generalized Geology of SLDC, Durango State, Mexico.
27
Figure 7.2 Stratigraphic Section for the SLDC Project Area.
8.0 DEPOSIT TYPES
8.1 Mineral Deposit Types
The SLDC property contains a number of workings in skarnified and hornfelsed areas of
Mesozoic limy sediments associated with the contact of granodioritic and porphyritic intrusive
bodies. The setting is favourable for skarn type and replacement deposits similar to Velardeña, Naica,
and San Martín deposits held by others in Durango and Chihuahua States (Figure 4.1). Exploration
has been primarily directed at mineralization associated with veined shear zones (Santa Rosa Vein,
India Bonita Vein) and mineralized skarn zones (Santa Rosa East Skarn) (Figure 8.1).
28
8.2 Geological Concepts Used For Exploration of the Property
General exploration concept for skarn and contact metamorphic deposits in the Sierra Madre
is to locate geophysical anomalies associated with conductive sulfide bodies or magnetism associated
with bodies enriched in pyrite, magnetite or pyrrhotite. Induced polarization surveys have been
successfully used to identify sulfide concentrations buried below post-mineral or recent alluvial or
soil cover. The quality of the geophysical interpretation is enhanced by the availability of detailed
geological and alteration mapping. The evaluation of vein type deposits can be enhanced if
mineralization is associated with conductive sulfides and if resistivity signatures are characteristic of
well mineralized lodes.
Drilling results showed the known ore bodies, Santa Rosa Vein and Santa Rosa E Skarn, have
subtle or null chargeability response and in the localities with interesting IP anomalies the drill holes
intersected hornfels with disseminated pyrrhotite. To date the better exploration methods on the
SLDC property are geologic targets produced by detailed geologic mapping and soil sampling at the
border of the intrusive stock complex.
8.3 Mineralization
Mineralization associated with the Santa Rosa Vein consists of coarse crystalline quartz+
pyrite+chalcopyrite+sphalerite+tetrahedrite-tennantite. Sphalerite is light-medium brown with
chalcopyrite replacement textures (also known as exsolution textures). Tetrahedrite is the more
abundant sulfosalt, tennantite is less common. Galena is rare in the Santa Rosa vein.
Both prograde and retrograde skarn type mineralization are associated with the Santa Rosa
East Skarn. Retrograde minerals seen are similar to those found in Santa Rosa Vein and include
quartz, pyrite, chalcopyrite, sphalerite, and tetrahedrite-tennantite. Prograde skarn mineralization is
usually simple: garnets (andradite and grossularite) crystalline quartz+chalcopyrite+pyrite.
At the India Bonita vein quartz+calcite+pyrite+sphalerite+galena are found.
29
Figure 8.1 Outcrop map showing General geology of the project.
30
9.0 EXPLORATION
9.1 Geochemical Sampling
Prospero’s geochemical sampling consisted of rock samples from surface outcrops,
underground workings, soil samples and core samples. All samples were analyzed by ICP multielement Au + 41 package at the ALS-Chemex laboratory in Vancouver, British Columbia. The
elements Au, Ag, Cu, Pb, and Zn were considered of economic interest or as possible pathfinders for
silver-base metal mineralization. Prospero found that molybdenum and to a lesser degree beryllium
and tungsten were also anomalous in the India Bonita structure. Geochemical sampling verified the
presence of significant silver in the India Bonita structure and suggests that molybdenum and
possibly the lithophile elements tungsten, beryllium and tin may be of interest in skarn and
replacement type deposits or wider areas of vein or stockwork mineralization.
Soil geochemistry developed in the East sector of Santa Rosa East Skarn shows interesting
anomalous zone at the border of the intrusive in Cu, Zn, Ag and Mo with spikes at La Puerta and El
Canal zones. La India Bonita shows spikes in Pb, Zn and Ag.
Soil anomalies have been used to confirm drill targets in zones where the geology is partially
or totally alluvium covered.
9.2 Induced Polarization Geophysical Program
A time domain 3D Induced Polarization (“IP”) survey was conducted for Prospero from June
05, 2008 to June 25, 2008 on 17 north-south lines spaced at 100m intervals (1W to 17W) by SJ
Geophysics (“SJ”) of Canada (Dobrescu and Ko, 2008; Rastad and Dobrescu, 2008). A total of 23
line-kms were surveyed (Figure 9.1). A dipole array consisted of a modified pole-dipole
configuration with a combination of 8 or 12 dipoles, for a total array length of 800m. The acquired
data was inverted to provide a subsurface distribution of resistivity and chargeability.
The 23 line-km IP survey produced a number of resistivity and chargeability anomalies as
interpreted in a report by Rastad and Dobrescu (2008). SJ’s survey shows that chargeability
anomalies appear to correlate with resistivity features and mapped geology.
Silver Standard completed an additional 19.2 line-kms of ground IP and CSMAT (Controlled
source Audio-frequency Magnetotelluric survey) in the eastern sector of the project.
31
Figure 9.1 Location Plan for Surveyed IP Grid.
(from Rastad and Dobrescu, 2008)
32
9.2 Discussion of Induced Polarization Results
Drill programs completed by Prospero and Silver Standard indicated that known mineralized
deposits have a subtle chargeability response. In contrast, the more peripheral zones within the
intrusive metamorphic halo host pyrrhotite and pyrite and produce significant IP anomalies, but lack
polymetalic mineralization of significance. Confirmation of this is seen in drill core from holes
SSLC-13-27 and SSLC-13-29 suggesting chargeability anomalies are in response to disseminated
pyrite within hornfels and silicified Jurassic sediments.
10.0 DRILLING
Previous drilling campaigns on the SLDC property include Apex Silver Mines Ltd. (Apex) in
2000 drilled three (3) diamond drill holes under the Sta. Rosa mine (659.37m); in 2007 Minera
Hochschild Mexico, SA de CV (HC) carried out a six (6) hole diamond drill program (1477.40m)
both at the Sta. Rosa mine area (2 holes), the India Bonita target zone (3 holes) and NE Veta structure
(1 hole); Prospero in 2010-11 completed 19 drillholes primarily targeted at extensions of the Santa
Rosa Vein and Santa Rosa East Skarn structures (3779.30m); and in 2013-14 Silver Standard carried
out a 15 h ole program (5520.35) also mainly targeted at extensions of the known vein and skarn
mineralization but also drilled exploration targets. In total 43 drill holes were completed for
11,436.42 meters. Drill holes were collared using HQ and reduced to NQ as required.
Coordinate system used is WGS 84 (equivalent to ITRF 92) and the topography relief
lines are taken from INEGI (Instituto Nacional de Geografía e Informática) maps.
Table 10.1 Drill Hole Collars.
Drill Hole
SL-00-1
SL-00-2
SL-00-3
HCIB-1
HCIB-2
HCIB-3
HCNE-1
HCSR-1
HCSR-2
PSLC-10-1
PSLC-10-2
PSLC-10-3
PSLC-10-4
PSLC-10-5
PSLC-10-6
PSLC-10-7
Easting
571533
571533
571603
572911
572916
572774
574711
571376
572042
571996
572095
571946
572145
571672
572907
572048
Northing
2812946
2812945
2812887
2814070
2813898
2813812
2815397
2813058
2812909
2812874
2812875
2812873
2812855
2812900
2813791
2812820
Elevation
1530
1529
1529
1566
1562
1575
1572
1530
1510
1507
1508
1511
1507
1524
1562
1504
Dip
-53
-68
-65
-48
-65
-60
-50
-45
-50
-50
-50
-50
-50
-50
-65
-50
Azimuth
30
30
30
0
0
325
315
30
0
0
0
0
0
30
0
0
Length
195.07
231.65
232.65
184.40
299.40
396.30
195.65
199.35
202.30
126.60
87.60
138.80
146.40
158.80
185.00
189.10
33
PSLC-10-8
PSLC-10-9
PSLC-10-10
PSLC-10-11
PSLC-11-12
PSLC-11-13
PSLC-11-14
PSLC-11-15
PSLC-11-16
PSLC-11-17
PSLC-11-18
PSLC-11-19
SSLC-13-20
SSLC-13-21
SSLC-13-22
SSLC-13-23
SSLC-13-24
SSLC-13-25
SSLC-13-26
SSLC-13-27
SSLC-13-28
SSLC-13-29
SSLC-13-30
SSLC-13-31
SSLC-14-32
SSLC-14-33
SSLC-14-34
572043
572196
570793
572146
572000
571839
571453
571884
571352
572459
571787
572361
571347
572318
572463
571334
570859
572280
572570
570512
573100
570506
573097
571290
572318
572318
572407
2812848
2812855
2813196
2812807
2812759
2812834
2812972
2812790
2812907
2811826
2813187
2811948
2812911
2812841
2813120
2813080
2813299
2813485
2813724
2813486
2813035
2813487
2813027
2813020
2812841
2812842
2812845
1505
1508
1568
1504
1503
1520
1526
1514
1522
1497
1541
1490
1520
1503
1531
1528
1566
1527
1603
1612
1520
1610
1520
1526
1503
1497
1519
-50
-50
-70
-50
-50
-51
-49
-51
-50
-50
-51
-50
-73
-50
-60
-65
-60
-45
-50
-45
-60
-65
-60
-73
-70
-60
-50
0
0
0
0
0
0
30
2
30
320
173
140
30
0
180
30
30
340
315
30
10
30
150
30
0
320
0
85.40
173.85
125.05
228.75
303.75
218.40
228.45
273.50
320.25
143.05
491.00
155.55
398.65
366.45
439.75
298.70
389.20
406.75
423.70
452.60
523.70
213.75
409.50
314.75
412.10
270.10
200.65
Table 10.2. Assay intervals used in the resource estimation.
Dhid From(m)
HCSR-2
18.50
HCSR-2
18.80
HCSR-2
19.50
HCSR-2
20.20
HCSR-2
21.00
HCSR-2
21.50
HCSR-2
22.45
HCSR-2
22.85
HCSR-2
24.10
HCSR-2
24.90
HCSR-2
25.15
To(m)
18.80
19.50
20.20
21.00
21.50
22.45
22.85
24.10
24.90
25.15
25.45
Length(m)
0.30
0.70
0.70
0.80
0.50
0.95
0.40
1.25
0.80
0.25
0.30
Ag g/t
39.6
40.7
53.9
14.1
5.6
4.0
12.4
42.9
68.9
850.0
38.5
Cu%
0.49
0.61
0.63
0.35
0.08
0.08
0.14
0.48
0.54
2.46
0.08
Zn%
0.29
0.35
0.25
0.16
0.50
0.08
0.43
0.67
1.15
1.84
2.02
MinZone
Santa Rosa East Skarn
34
HCSR-2
HCSR-2
HCSR-2
HCSR-2
HCSR-2
HCSR-2
HCSR-2
HCSR-2
HCSR-2
HCSR-2
HCSR-2
HCSR-2
HCSR-2
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
25.45
25.65
25.80
26.00
26.45
27.55
28.80
28.95
29.50
30.55
31.00
31.40
18.50
80.32
81.37
82.10
82.80
84.08
85.35
86.03
86.82
87.20
88.18
88.50
89.67
90.13
90.57
90.97
92.47
93.94
95.25
96.10
97.45
98.70
99.62
100.02
100.80
101.30
102.20
103.05
103.76
104.64
105.60
106.35
107.03
25.65
25.80
26.00
26.45
27.55
28.80
28.95
29.50
30.55
31.00
31.40
31.80
31.80
81.37
82.10
82.80
84.08
85.35
86.03
86.82
87.20
88.18
88.50
89.67
90.13
90.57
90.97
92.47
93.94
95.25
96.10
97.45
98.70
99.62
100.02
100.80
101.30
102.20
103.05
103.76
104.64
105.60
106.35
107.03
107.48
0.20
0.15
0.20
0.45
1.10
1.25
0.15
0.55
1.05
0.45
0.40
0.40
13.30
1.05
0.73
0.70
1.28
1.27
0.68
0.79
0.38
0.98
0.32
1.17
0.46
0.44
0.40
1.50
1.47
1.31
0.85
1.35
1.25
0.92
0.40
0.78
0.50
0.90
0.85
0.71
0.88
0.96
0.75
0.68
0.45
741.0
19.3
19.5
30.8
3.6
22.5
101.0
35.3
3.7
326.0
4.4
51.3
63.3
76.4
81.2
474.0
16.3
13.2
3.5
157.0
133.0
36.4
89.6
142.0
25.0
17.6
26.6
7.8
4.1
2.3
4.5
21.3
2.2
189.0
839.0
48.2
322.0
440.0
30.0
135.0
80.9
27.6
16.6
24.8
45.5
6.18
0.14
0.11
0.18
0.02
0.26
2.25
0.52
0.06
1.90
0.03
1.14
0.52
0.65
0.74
3.60
0.10
0.07
0.02
1.61
0.48
0.53
1.73
1.84
0.10
0.04
0.35
0.11
0.06
0.02
0.08
0.09
0.03
0.35
5.62
0.34
1.31
1.45
0.07
0.33
0.60
0.21
0.31
0.42
1.00
3.00
3.92
1.63
1.17
1.37
2.22
10.45
2.00
0.36
1.78
0.26
0.35
1.08
0.19
0.39
0.56
0.11
0.17
0.09
0.19
0.24
0.30
0.43
1.30
0.94
0.58
3.45
0.55
0.29
0.18
0.29
0.21
0.13
0.27
0.23
0.98
3.70
1.47
0.32
0.23
1.25
0.09
0.12
0.76
4.32
Interval
35
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-1
PSLC-10-11
PSLC-10-11
PSLC-10-11
PSLC-10-11
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-2
PSLC-10-3
PSLC-10-3
107.48
108.51
109.61
110.61
80.32
168.29
168.64
169.97
168.29
51.40
52.65
53.90
54.95
56.45
57.28
57.95
58.85
59.00
59.50
60.15
60.35
61.53
62.13
62.55
63.65
64.45
65.23
66.10
66.74
67.65
68.20
68.55
70.00
70.05
70.35
70.65
70.90
71.20
71.85
73.40
74.45
75.00
51.40
94.55
95.37
108.51
109.61
110.61
110.91
110.91
168.64
169.97
170.48
170.48
52.65
52.90
54.95
56.45
57.28
57.95
58.85
59.00
59.50
60.15
60.35
61.53
62.13
62.55
63.65
64.45
65.23
66.10
66.74
67.65
68.20
68.55
70.00
70.05
70.35
70.65
70.90
71.20
71.85
73.40
74.45
75.00
75.60
75.60
95.37
96.06
1.03
1.10
1.00
0.30
30.59
0.35
1.33
0.51
2.19
1.25
0.25
1.05
1.50
0.83
0.67
0.90
0.15
0.50
0.65
0.20
1.18
0.60
0.42
1.10
0.80
0.78
0.87
0.64
0.91
0.55
0.35
1.45
0.05
0.30
0.30
0.25
0.30
0.65
1.55
1.05
0.55
0.60
24.20
0.82
0.69
23.7
29.4
302.0
223.0
91.6
25.1
115.0
99.0
96.9
83.5
0.9
98.0
84.8
687.0
77.3
65.1
70.0
14.7
397.0
74.1
4.3
6.5
25.4
4.9
3.5
2.1
14.8
217.0
129.0
23.2
128.0
26.5
26.5
13.7
18.9
0.8
758.0
27.3
2.1
23.6
2.4
72.6
84.0
11.8
56.8
0.70
0.89
8.41
6.26
0.70
1.53
0.65
0.92
0.67
1.12
0.3
0.71
0.48
0.54
0.70
0.80
0.11
0.04
1.24
1.31
0.13
0.04
0.73
0.13
0.09
0.00
0.24
3.62
4.00
0.94
0.74
0.65
0.65
0.43
0.43
0.02
3.74
0.22
0.01
0.49
0.04
1.67
0.72
0.18
0.60
0.69
0.47
2.99
3.47
0.92
0.36
0.47
3.07
1.24
0.14
0.23
0.37
0.24
0.53
0.58
0.63
0.24
0.14
0.59
0.74
0.18
0.13
0.73
0.22
0.19
0.05
0.09
6.40
0.96
0.11
4.24
0.50
0.50
0.10
2.37
0.41
0.77
0.05
0.06
0.48
0.45
0.97
0.58
1.72
3.53
Interval
Interval
Interval
36
PSLC-10-3
PSLC-10-3
PSLC-10-3
PSLC-10-3
PSLC-10-3
PSLC-10-4
PSLC-10-4
PSLC-10-4
PSLC-10-4
PSLC-10-4
PSLC-10-4
PSLC-10-4
PSLC-10-4
PSLC-10-4
PSLC-10-4
PSLC-10-4
PSLC-10-4
PSLC-10-4
PSLC-10-4
PSLC-10-4
PSLC-10-4
PSLC-10-5
PSLC-10-5
PSLC-10-5
PSLC-10-5
PSLC-10-7
PSLC-10-7
PSLC-10-7
PSLC-10-7
PSLC-10-7
PSLC-10-7
PSLC-10-7
PSLC-10-7
PSLC-10-7
PSLC-10-7
PSLC-10-7
PSLC-10-7
PSLC-10-7
PSLC-10-7
PSLC-10-7
PSLC-10-7
PSLC-10-7
PSLC-10-7
PSLC-10-7
PSLC-10-7
97.20
97.80
98.44
99.31
94.55
85.40
86.90
88.73
89.53
90.75
92.20
93.60
95.00
96.30
97.70
97.90
98.90
99.90
100.65
102.17
85.40
132.50
132.85
134.20
132.50
141.50
142.15
143.69
144.38
145.00
145.50
146.05
147.35
148.13
148.87
149.95
150.83
151.31
151.76
152.80
154.14
155.50
157.00
157.78
141.50
97.80
98.44
99.31
99.86
99.86
86.90
87.90
89.53
90.75
92.20
93.60
95.00
96.30
97.70
97.90
98.90
99.90
100.65
102.17
103.70
103.70
132.85
134.20
135.52
135.52
142.15
142.84
144.38
145.00
145.50
146.05
147.35
148.13
148.87
149.95
150.83
151.31
151.76
152.80
154.14
155.50
157.00
157.78
158.55
158.55
0.60
0.64
0.87
0.55
5.31
1.50
1.00
0.80
1.22
1.45
1.40
1.40
1.30
1.40
0.20
1.00
1.00
0.75
1.52
1.53
18.30
0.35
1.35
1.32
3.02
0.65
0.69
0.69
0.62
0.50
0.55
1.30
0.78
0.74
1.08
0.88
0.48
0.45
1.04
1.34
1.36
1.50
0.78
0.77
17.05
964.0
9.3
15.2
14.5
125.7
59.1
89.7
17.2
191.0
11.5
2.5
0.5
0.7
0.6
250.0
155.0
262.0
177.0
68.8
54.4
68.1
1.4
26.2
58.7
37.5
92.8
76.2
75.0
208.0
52.6
183.0
5.6
3.1
35.1
12.4
48.7
88.9
13.4
3.2
3.7
3.6
4.6
35.0
425.0
61.5
1.62
0.21
0.60
0.54
0.52
1.12
0.12
0.13
0.43
0.17
0.01
0.00
0.00
0.00
4.50
2.86
5.43
4.17
1.64
0.99
1.04
0.13
0.03
0.74
0.35
1.02
0.26
0.25
0.72
0.14
0.85
0.14
0.02
0.23
0.07
0.42
0.10
0.03
0.02
0.06
0.08
0.13
1.55
1.28
0.36
1.67
0.92
1.23
0.61
1.74
0.42
0.10
0.18
0.45
0.12
0.01
0.01
0.00
0.01
0.21
0.24
0.06
0.54
0.19
0.08
0.16
4.21
0.19
0.28
0.70
3.05
2.91
0.97
3.74
0.22
1.61
0.69
0.18
0.82
0.70
6.22
1.89
0.72
0.19
0.41
0.41
0.34
0.22
0.35
1.48
Interval
Interval
Interval
Interval
37
PSLC-10-9
PSLC-10-9
PSLC-10-9
PSLC-10-9
PSLC-10-9
PSLC-10-9
PSLC-10-9
PSLC-10-9
PSLC-10-9
PSLC-10-9
PSLC-10-9
PSLC-10-9
PSLC-10-9
PSLC-10-9
PSLC-10-9
PLSC-11-12
PLSC-11-12
PSLC-11-13
PSLC-11-13
PSLC-11-13
PSLC-11-13
PSLC-11-13
PSLC-11-13
PSLC-11-13
PSLC-11-13
PSLC-11-13
PSLC-11-13
PSLC-11-13
PSLC-11-15
PSLC-11-15
PSLC-11-15
PSLC-11-15
PSLC-11-15
PSLC-11-15
PSLC-11-15
PSLC-11-15
PSLC-11-15
PSLC-11-15
PSLC-11-15
PSLC-11-15
PSLC-11-15
PSLC-11-15
PSLC-11-15
PSLC-11-15
PSLC-11-15
132.24
133.39
134.10
135.53
136.75
137.94
138.72
140.03
140.72
141.72
142.85
143.50
143.64
144.82
132.24
250.10
250.10
173.78
174.34
175.07
175.22
175.50
176.40
177.45
178.25
178.95
179.90
173.78
201.55
202.32
203.81
204.22
205.52
206.40
207.55
208.43
209.12
210.30
211.45
211.72
212.35
212.75
213.12
213.43
214.17
133.39
134.10
135.53
136.75
137.94
138.72
140.03
140.72
141.72
142.85
143.50
143.64
144.82
145.46
145.46
251.10
251.10
174.34
175.07
175.22
175.50
176.40
177.45
178.25
178.95
179.90
180.78
180.78
202.32
203.25
204.22
205.52
206.40
207.55
208.43
209.12
210.30
211.45
211.72
212.35
212.75
213.12
213.43
214.17
214.85
1.15
0.71
1.43
1.22
1.19
0.78
1.31
0.69
1.00
1.13
0.65
0.14
1.18
0.64
13.22
1.00
1.00
0.56
0.73
0.15
0.28
0.90
1.05
0.80
0.70
0.95
0.88
7.00
0.77
0.93
0.41
1.30
0.88
1.15
0.88
0.69
1.18
1.15
0.27
0.63
0.40
0.37
0.31
0.74
0.68
74.8
67.6
0.9
1.2
1.9
6.1
17.4
73.9
3.7
4.7
14.9
30.6
20.8
237.0
31.8
57.7
57.7
131.0
14.5
96.0
5.1
23.5
21.1
106.0
56.5
120.0
34.9
58.9
121.0
72.2
86.5
32.8
32.0
337.0
10.8
7.9
15.6
9.4
46.5
9.2
33.2
5.4
23.6
7.1
26.4
2.56
1.05
0.02
0.03
0.05
0.11
0.62
1.81
0.05
0.06
0.13
0.52
0.41
0.94
0.55
0.51
0.51
0.38
0.11
2.80
0.04
0.08
0.08
0.64
0.68
0.99
0.21
0.43
0.59
0.21
0.41
0.20
0.25
1.91
0.21
0.11
0.36
0.07
2.29
0.23
0.53
0.08
0.51
0.13
0.86
2.99
2.16
0.04
0.13
0.23
0.03
0.10
0.08
0.17
0.09
0.03
4.32
0.11
0.22
0.52
0.33
0.33
0.85
0.50
6.67
0.19
0.37
0.19
3.03
4.44
9.91
2.60
2.81
0.62
0.32
1.58
0.62
0.42
0.31
0.32
0.51
0.25
0.52
0.20
0.32
0.26
0.45
0.86
0.62
1.49
Interval
Interval
Interval
38
PSLC-11-15
PSLC-11-15
PSLC-11-15
PSLC-11-15
PSLC-11-15
PSLC-11-15
SL-00-2
SL-00-2
SL-00-2
SL-00-2
SL-00-2
SL-00-3
SL-00-3
SL-00-3
SL-00-3
SL-00-3
SL-00-3
SSLC-13-21
SSLC-13-21
SSLC-13-21
SSLC-13-21
SSLC-13-21
SSLC-13-21
SSLC-13-21
SSLC-13-21
SSLC-13-21
SSLC-13-21
SSLC-13-21
SSLC-13-21
SSLC-13-21
SSLC-13-21
SSLC-13-21
SSLC-13-21
SSLC-14-33
SSLC-14-33
SSLC-14-33
SSLC-14-33
SSLC-14-34
SSLC-14-34
SSLC-14-34
SSLC-14-34
PSLC-11-14
PSLC-11-14
PSLC-11-14
PSLC-11-14
214.85
216.25
216.70
217.23
217.75
201.55
195.07
195.62
196.46
197.56
195.07
212.98
213.36
214.56
215.14
215.98
212.98
137.45
139.10
140.05
141.00
142.50
144.05
144.95
146.45
148.00
149.50
150.00
151.05
152.55
154.10
155.60
137.45
197.05
197.65
198.45
197.05
137.30
137.85
138.90
137.30
163.73
164.61
165.13
163.73
216.25
216.70
217.23
217.75
218.10
218.10
195.62
195.98
197.56
197.70
197.70
213.36
214.56
215.14
215.98
216.93
216.93
139.10
140.05
141.00
142.50
144.05
144.95
146.45
148.00
149.50
150.00
151.05
152.55
154.10
155.60
157.15
157.15
197.65
198.45
200.00
200.00
137.85
138.90
139.70
139.70
164.61
165.13
166.07
166.07
1.40
0.45
0.53
0.52
0.35
16.55
0.55
0.36
1.10
0.14
2.63
0.38
1.20
0.58
0.84
0.95
3.95
1.65
0.95
0.95
1.50
1.55
0.90
1.50
1.55
1.50
0.50
1.05
1.50
1.55
1.50
1.55
19.70
0.60
0.80
1.55
2.95
0.55
1.05
0.80
2.40
0.88
0.52
0.94
2.34
2.1
28.6
65.5
171.0
274.0
62.5
0.3
173.0
0.0
15.9
28.8
17.6
1.9
87.0
6.4
13.8
19.7
98.0
64.3
39.8
382.0
390.0
98.1
218.0
37.4
49.0
95.0
95.0
48.5
121.0
11.0
256.0
142.4
843.0
14.3
7.4
179.2
1020.0
103.0
34.3
290.3
1915.0
534.0
62.0
863.7
0.05
0.69
2.52
0.89
4.94
0.69
0.01
6.20
0.00
0.08
0.95
0.25
0.02
0.46
0.33
0.12
0.20
0.40
0.42
0.18
0.46
0.61
0.29
1.38
0.56
0.26
1.98
1.98
0.79
0.61
0.14
1.08
0.69
4.16
0.22
0.04
0.93
6.59
0.39
1.24
2.09
2.16
1.49
0.18
1.22
0.43
2.17
3.41
1.64
1.62
0.85
0.01
0.12
0.00
1.06
0.08
5.85
0.30
2.40
9.20
8.15
4.92
0.02
1.91
0.74
1.69
1.12
1.41
0.69
2.26
1.24
1.79
1.79
0.60
0.72
0.39
0.19
1.02
1.52
1.38
0.02
0.69
0.23
2.87
1.54
1.82
1.36
1.40
0.21
0.91
Interval
Interval
Interval
Interval
Interval
Interval
Santa Rosa Vein
Santa Rosa Vein
Santa Rosa Vein
Interval
39
PSLC-11-16
PSLC-11-16
PSLC-11-16
PSLC-11-16
PSLC-11-16
SL-00-1
SL-00-1
SL-00-1
SL-00-1
SL-00-1
SSLC-13-23
SSLC-13-23
SSLC-13-23
260.84
261.68
261.86
262.36
260.84
173.94
174.56
174.99
175.53
173.94
138.90
139.90
138.90
261.68
261.86
262.36
263.46
263.46
174.56
174.99
175.53
176.05
176.05
139.90
141.00
141.00
0.84
0.18
0.50
1.10
2.62
0.62
0.43
0.54
0.52
2.11
1.00
1.10
2.10
60.4
801.0
2430.0
575.0
779.6
837.6
156.0
370.2
971.0
612.0
226.0
834.0
544.5
0.26
2.94
3.17
0.72
1.19
1.58
0.26
0.58
1.56
1.05
0.24
1.74
1.03
0.21
30.00
8.27
0.88
4.08
5.80
0.30
0.98
0.89
2.24
2.31
10.45
6.57
Santa Rosa Vein
Santa Rosa Vein
Santa Rosa Vein
Santa Rosa Vein
Interval
Santa Rosa Vein
Santa Rosa Vein
Santa Rosa Vein
Santa Rosa Vein
Interval
Santa Rosa Vein
Santa Rosa Vein
Interval
10.1 Drill Hole Orientation
The Santa Rosa Vein strikes at approximately 130o and dips southeast at 70-80o. The Santa
Rosa East Skarn strikes east-west and dips southerly at 70-80o. Therefore the majority of drill holes
were drilled in a northerly direction at dips ranging from 45 to 70 degrees (Table 10.1). All collars
were positioned using GPS instrumentation. Downhole surveys were taken with a Reflex survey tool
for all Prospero and Silver Standard holes.
True width is on average about 75% of drillhole intercept. No cutting factors were applied to
the assay data base.
While there are some exploration holes located to test geological structures, geochemical
anomalies, and/or IP anomalies, the primarily method to locate drill holes has been to target projected
extensions of the Santa Rosa Vein, Bonita Vein and Santa Rosa East Skarn structures.
11.0 SAMPLE PREPARATION, ANALYSES AND SECURITY
11.1 Sample Preparation and Analytical Procedures
During the drill programs the following QA/QC protocol has been established by Prospero
(company memorandum dated July 2008) and Silver Standard as follows:
1. Drilling Supervisión. Supervision of the drill program, sampling of the core, and
collection of the metallurgical sample is under the supervision of the project geologist.
2. Transport of the core to the core shack. Once the drill hole is completed the core boxes
are loaded into a pick up and tied together with a rope to avoid any core falling out during
transport to the secured core shack, a rented warehouse located in the town of San Luis del
Cordero.
40
3. Calculation of core recovery and RQD (Rock Quality Data). With the core placed in
decending order, the number of core pieces greater than 10 centimeters in length is
determined in order to calculate the RQD. Measurement of the length of recovered core.
4. Logging procedures and sample selection. The core is described according to intervals of
equal lithology, according to formations and members, paying special attention to
subdivisions in the mineralized zones. Sample selection is carried out in the mineralized
intervals with a black marker pen indicating where each sample initiates and ends and
showing arrows that indicate the interval to be sampled. The length of the samples varies
depending on the type of material being sampled. The maximum length for individual samples
does not exceed 1.5 meters.
6. Numbering of samples. Within the interval that is to be sampled a sample number is marked
with a black marker pen that identifies the sample. The numbering sequence used for
sampling is continuous and ascending with respect to depth in a specific diamond drill
hole. Numbering control is carried out in a field notebook.
7. Duplicates-Blanks-Standards.
• duplicate pulp samples are inserted 3 for every 100 s amples. Placing of the
duplicate pulps is done by the laboratory once all the pulps are produced.
• 2 blanks are inserted every 100 samples,
• standards are inserted one per 20 assay samples,
8. Sampling of the Core. Splitting of the core is carried out with a diamond saw that cuts the
core in half. A half is placed in a plastic bag and is tagged by labeling a piece of flag tape with
an indelible marker pen and inserting the numbered flag and/or an assay tag. The same
number is also placed on the outside of the plastic bag. The remaining half core is ordered and
returned the core box for reference and later use. Sample selection and splitting of the core is
carried out by trained geological technicians with experience in core splitting and under
the supervision of the geologist.
9. Storage of core boxes and transport of samples to the Assay Laboratory. The core boxes
are placed inside secured rooms. The keys, permitting access, are controlled by two company
representatives. The samples for assaying are placed into 30 kilogram sacks, loaded onto a
company vehicle and driven by a company employee to a courier service for shipment to a
sample preparation laboratory of ALS Chemex in Zacatecas, Hermosillo, Sonora or in
Guadalajara, Jalisco, México.
10. Pulp Transport. ALS Chemex shops the pulps from its preparation laboratory in Zacatecas or
Guadalajara to ALS Chemex in North Vancouver for assaying. ALS Chemex is an ISO
9001:2008 certified facility and operates in compliance with ISO/IES 17025.
11. Assay Methods. The assay methods currently used by ALS Chemex are ME- ICP61m or
ME-ICP41m for the metals and Au ICP21 for gold. The Code OG62 is for silver overruns of
100 ppm.
11.2 Review of Quality Assurance/Quality Control
Hochschild, Silver Standard and Prospero used a series of Standard Reference Materials
(SRMs), blank references (Blanks) and duplicates as part of their QA/QC program. Apex Silver
relied on laboratory controls.
11.2.1 Standards
One standard was inserted for every 20 assay samples Hochschild, Silver Standard and
41
Prospero drill programs. Not all results have been graphically displayed, but a r eview of the assay
results for the Prospero standards show reasonable correlation to the standards certified assay results.
Figures 11.1 and 11.2 show Silver Standard results.
Figure 11.1. Standard CDN-FCM-5
CDN-FCM-5 [Ag]
34
32
Ag_ppm
30
Mean-Ag
+2SD-Ag
28
-2SD-Ag
+3SD-Ag
26
-3SD-Ag
24
Ag
22
0
10
20
30
40
50
60
70
80
NumberOfSamples
CDN-FCM-5 [Cu]
4700
4600
4500
Cu_ppm
4400
Mean-Cu
4300
+2SD-Cu
4200
-2SD-Cu
+3SD-Cu
4100
-3SD-Cu
4000
Cu
3900
3800
3700
0
10
20
30
40
50
NumberOfSamples
60
70
80
42
CDN-FCM-5 [Zn]
7400
7200
7000
Zn_ppm
6800
Mean-Zn
+2SD-Zn
6600
-2SD-Zn
6400
+3SD-Zn
6200
-3SD-Zn
6000
Zn
5800
5600
5400
0
10
NumberOfSamples
30
40
50
20
60
70
80
Figure 11.2. Standard STD-15
STD-15 [Ag]
165
160
155
Ag_ppm
150
Mean-Ag
145
+2SD-Ag
140
-2SD-Ag
+3SD-Ag
135
-3SD-Ag
130
ICP61-Ag
125
120
0
10
20
30
40
50
60
70
80
90
NumberOfSamples
43
11.2.2 Duplicates
Duplicate pulp samples were introduced 3 for every 100 assay samples. Placing of the
duplicate pulps was done by the laboratory once all the pulps are produced.
There were 176 duplicate samples analyzed (Figure 11.3). The Ag, Cu and Zn duplicates all
report 70% within 30% relative difference. These numbers are affected by the number of duplicates
for low grade assays which tend to return a higher relative difference.
44
Figure 11.3 Ag Cu Zn Duplicates
Ag Duplicates
50
ICP61-Ag
D
U
P
40
30
20
10
0
0
10
20
30
40
50
Cu Duplicates
2500
ICP61-Cu
y = 0.9611x - 8.4757
2000
D
U
P
1500
1000
500
0
0
500
1000
1500
2000
2500
-500
45
Zn Duplicates
6000
ICP61-Zn
y = 0.9842x + 1.4692
D
U
P
5000
4000
3000
2000
1000
0
0
1000
2000
3000
4000
5000
6000
11.2.3 Blanks
Blank samples were introduced 2 for every 100 assay samples. The graphs below show the
results for Ag, Cu and Zn for 179 blanks (Figure 11.4).
The blank results are within established limits except for the blanks used for the Prospero drill
program. The material Propero used for blanks is not uniform and needs to be replaced in any future
drill program. Care needs to be taken to ensure all standard materials are of high quality.
Figure 11.4 Ag Cu Zn Blanks
Blank [Ag]
6
5
Ag_ppm
4
3
Ag LLD
Ag 10LLD
2
ICP61-Ag
1
0
-20
30
80
NumberOfSamples
130
180
46
Blank [Cu]
400
350
Zn_ppm
300
250
Cu LLD
200
Cu 10LLD
150
ICP61-Cu
100
50
0
-20
30
NumberOfSamples
80
130
180
Blank [Zn]
600
500
Zn_ppm
400
Zn LLD
300
Zn 10LLD
200
ICP61-Zn
100
0
-20
30
NumberOfSamples
80
130
180
11.3 Core Storage Facility
Prospero established a secure core storage facility at a warehouse in San Luis Cordero. The
facility has ample room for core logging, core sampling and core, reject and pulp storage. All drill
core, rejects and pulps are stored at the warehouse.
47
11.4 Discussion
The writer believes that QA/QC procedures carried out by the operators through the 2000 to
2014 programs at SLDC follow industry guidelines and the drillhole database is sufficient for
resource estimation.
12.0 DATA VERIFICATION
12.1 Quality Control and Data Verification
The writer carried out a-field examination of the SLDC on August 15, 2014. The field
examinations included examination of old workings, skarnified limy sedimentary rocks near the
quartz feldspar porphyry or granodiorite contact and review of drill core securely stored in Prospero’s
core logging and storage building in San Luis del Cordero. The writer verified drill coordinates of
drill holes in the field and re-sampled several drill hole core intervals at the core storage facility.
12.2 Verification of Sampling and Analytical Data
The writer toured the SLDC property with Prospero’s exploration manager Martin Soto
Moran on August 15, 2014 and collected 5 samples from core holes. The writer’s samples support the
presence of significant silver, zinc and copper grades obtained by Apex, HC, Altiplano, Prospero and
Silver Standard. The writer’s collar checks and samples are summarized in Tables 12.1 and 12.2. The
writer’s samples were submitted to ALS Chemex Lab in Vancouver for preparation and assay for
gold and silver by fire assay start with an atomic absorption finish (“FA-AA”) on a 30 gram split
from the prepared sample. Copper, lead and zinc were determined by digestion of a 1.0 gram split in
aqua regia and analysis by AA.
Seven point two percent (7.2%) of the assay database was compared to the original assay
certificates as received from the ALS Chemex lab. No errors were found.
Table 12.1 Drill Hole Collar Checks from the SLDC Property.
DDH
SSLC-13-23
SSLC-11-14
SL-00-1
SL-00-3
SSLC-13-20
PSLC-10-9
PSLC-10-2
Data Base
Coordinates
Easting
571334
571453
571533
571603
571347
572196
572095
Northing
2813080
2812972
2812946
2812887
2812911
2812855
2812875
Elevation
1528
1526
1530
1529
1520
1508
1508
DDH
PSLC-11-23
SSLC-11-14
SL-00-1
SL-00-3
SSLC-13-20
PSLC-10-9
PSLC-10-2
GPS Check
Coordinates
Easting
571335
571451
571537
571602
571345
572193
572092
Northing
2813079
2812972
2812926
2812888
2812910
2812856
2812878
Elevation
1533
1528
1525
1513
1523
1506
1507
48
Seven drill hole collars were checked in the field during the site visit with a handheld Garmin
GPS 60CSx. Accuracy with this instrument is stated to be ±3 meters for easting and northing with
elevation readings often less accurate. Accuracy of the collar coordinates were generally confirmed
within the level of GPS accuracy. The northing for SL-00-1 is outside of the error limit and should be
verified by Prospero staff during the next available property visit. Drillhole collars are well marked in
the field with permanent cement markers.
Table 12.2 Drill Core Check Samples from the SLDC Property.
Original
Sample
72068
74103
74106
255978
441659
Ag
ppm
89.6
534.0
17.2
1020.0
98.1
Cu
%
1.73
1.49
0.15
6.59
0.29
Zn
%
0.43
1.40
0.48
0.23
1.41
Fe
%
3.93
3.01
2.54
8.20
2.61
S
%
0.60
0.01
2.32
10.00
1.59
Pb
ppm
137
3050
44
968
588
Re-Sample
Ag
ppm
94.6
567.0
6.0
921.0
83.9
Cu
%
2.23
1.14
0.08
6.26
0.22
Zn
%
0.59
1.80
0.68
0.11
1.52
Fe
%
4.50
3.89
1.33
8.29
2.35
S
%
0.71
0.25
0.98
9.42
1.38
Pb
ppm
166
4610
25
657
501
72068
74103
74106
255978
441659
The writer collected five samples, one each from five separate drill holes during the visit to
the core storage facility. Every effort was made to match the sample interval from the original
sample. There was no core saw available and sampling was carried out with a core splitter.
Results of the duplicate samples compare reasonably well with the original sample and
confirmed the presence of anomalous mineralization on the SLDC property.
12.3 Discussion
The writer believes that the database is sufficient to support resource estimation.
49
13.0 MINERAL PROCESSING AND METALLURGICAL TESTING
Prospero has not conducted any metallurgical testing on the mineralization nor is there and
metallurgical data available on the processing of the direct shipping ore mined from the Santa Rosa
Vein deposit. The property has sufficient areas for any potential tailings pond and plant facilities.
14.0 MINERAL RESOURCE ESTIMATES
The mineral resource was calculated using MinesightTM MS3D software. The effective date of
the resource is October 1, 2014.
14.1 Drillhole Database
In the period 2000 to 2014 the SLDC property has been subject to 4 separate drill campaigns by
Apex Silver Mines Ltd., Minera Hochschild Mexico, SA de CV, Prospero and Silver Standard totaling
11,436.42 meters in 43 drill holes (Tables 10.1).
The database contains all required drill hole information required to construct a 3D model and
resource estimate including location, orientation, downhole surveys, assays, logged geology and
alteration. The drillhole database was compiled by Prospero, reviewed and verified by the writer and
was determined to be acceptable for use in resource estimation. Topographic data is from hand held
GPS units or taken from INEGI (Instituto Nacional de Geografía e Informática) maps.
14.2 Project Parameters
The project was modeled for silver, copper and zinc. Block sized used is 25 meters east-west by
25 meters north-south with a 10 meters bench height and was based on the nominal drill spacing of 50
to 100 meters. Block model origin in UTM coordinates is 570200 East, 2811400 North and 1050
Elevation. Table 14.1 contains the block model limits.
Table 14.1 SRLC Block Model Setup
Minimum(m) Maximum(m)
Easting
570200
574800
Northing
2811400
2815500
Elevation
1050
1650
Cell Size
25
25
10
Number
184
164
60
50
14.3 Specific Gravity
After discussions with Prospero geologists, review of assay results, visual inspection of drill
core and data search of other similar operations SGs a specific gravity of 3.00 g/t3 was selected for use
in the resource estimate.
The writer recommends Prospero carry out a detailed program of specific gravity measurements
from the existing core and to continue this program with future drill programs.
14.4 Compositing
A compositing length of 1.0 meters was selected for the Santa Rosa Vein and Santa Rosa East
Skarn mineralized zones based on the average assay length for these zones, 0.84m and 0.71m
respectively. Composite values for intervals less than or equal to 0.4m in length were combined with
the preceding composite. Composites honoured the geologic code used to define the separate
mineralized zones.
14.5 Geological Interpretation
Separate three dimensional (3D) wireframe solids were developed for the Santa Rosa Vein and
the Santa Rosa East Skarn. The wireframe models were constructed from drill holes using the basis of a
minimum value of $50 US over a minimum true thickness of 1.50 meters. Prices used for value
calculation were Ag = $19/oz; Cu = $3.00/lb; Zn = $0.90/lb. The cost of $50/tonne used to tag the
assays and construct the 3D solids was provided by Prospero and is based on data from seven Mexican
silver and/or base metal operations. The average production cost for these seven Mexican operations is
$42.50 per tonne. Cost data for these operations was obtained from 2013 annual reports, company’s
2014 guidance or conversations with company personnel. Production rates vary from 1300 to 3200
tonnes per day. Deposit types include veins, skarns and carbonate replacement deposits. When an
average recovery of 85% is applied to the $42.50 per tonne cost it raises the value to the $50 used. The
$50 value is approximately equal to 85 grams silver (or silver equivalent (AgEq)) and is the cut-off
grade used to report the resource estimate Table 14-6.
Sectional interpretations were built using Minesight software. These 2D interpretations were
then verified and altered if necessary to maintain consistency of strike and dip of the mineralized
structures. Sections developed for the Santa Rosa Vein and Santa Rosa East Skarn deposits were then
linked to form 3D solids. The solids were projected a maximum of 50m along strike from the last drill
hole. Wireframes were trimmed to honour old mine workings and the estimated base of overburden.
Solids were validated using Minesight software with no errors found (Table 14-2). Due to sheer size of
the wireframes and interpolation parameters used, grades were not estimated into the full volume of the
wireframe models.
51
Table 14.2 3D Wireframe Statistics
Zone
Santa Rosa Vein
Min
Easting
571545
Max
Easting
572460
Min
Elev
1291
Max
Elev
1506
Min
Thk
1.53
Max
Thk
23.05
Volume(m3)
90,608
571314
571619
1269
1485
1.40
2.35
1,089,863
The wireframe solids were then used to tag the block model with Santa Rosa Vein and East
Skarn identifier codes and volume percent of the 3D wireframe solid contained within each model
block. Grade interpolations into the model blocks were completed using the Inverse Distance cubed
(ID3) estimation method. Grade interpolation was limited to the wireframe models by employing
composite and model code matching. Estimation was designed in three passes with the maximum
interpolation distance decreasing and minimum and maximum number of data points required to
interpolate a block increasing with each pass. Table 14.3 summarizes interpolation criteria used.
Table 14.3 Interpolation Parameters
Interpolation distance (m)
Number of composites
Pass 1
Min Max
100
1
15
Pass 2
Min
Max
75
2
15
Pass 3
Min
Max
50
4
15
14.6 Block Model Validation
Visual Validation
The visual comparisons of interpolated block grades, resource classification, 3D wireframe
outlines and drill hole composite intersections for each of the zones were verified on screen for plan
and section. No significant discrepancies were apparent from the sections reviewed, yet grade
smoothing is apparent in some regions due to the distance between drill samples being broader.
Global Comparison
The block model ID3 estimate was verified for global bias by comparing it to the average
grades of a sectional model. Table 14.4 shows the comparison of the global estimates for the two
models. In general, there is good agreement between the models. Larger discrepancies reflect a lower
52
drill density in some portions of the model. Table 14.5 contains statistical comparison of composite and
model grades.
Table 14.4 Global Model Comparisons
Model
Type
ID3
Sectional
Ag g/t
140
151
Cu%
0.76
0.80
Zn%
1.37
1.40
Table 14.5 Block Model vs Composites
BM
Item
Average
Std.dev
Minimum
Maximum
c.v.
BM
Item
Average
Std.dev
Minimum
Maximum
c.v.
Skarn
Ag g/t
94
84.1
20
368
0.83
Vein
Ag g/t
732
153.0
508
1104
0.22
Skarn
Cu%
0.73
0.56
0.19
2.52
0.71
Vein
Cu%
1.13
0.11
0.94
1.45
0.1
Skarn
Zn%
1.23
1.18
0.10
6.21
0.81
Vein
Zn%
3.41
1.93
0.95
6.84
0.53
Comps
Item
Average
Std.dev
Minimum
Maximum
c.v.
Comps
Item
Average
Std.dev
Minimum
Maximum
c.v.
Skarn
Ag g/t
84
109.3
1.0
607
1.31
Vein
Ag g/t
722
563.7
179
1749
0.78
Skarn
Cu%
0.73
1.02
0.0
7.32
1.40
Vein
Cu%
1.13
0.66
0.24
2.08
0.59
Skarn
Zn%
1.00
1.34
0.0
8.98
1.34
Vein
Zn%
3.37
3.19
0.57
10.45
0.95
14.7 Resource Classification
The resources are classified under the categories Indicated Resources and Inferred Resources in
accordance with CIM Definition Standards. Classification reflects confidence of drill hole spacing,
grade continuity, historic mine workings, the number of samples required to estimate a block and the
author’s experience with shear hosted, CRD and skarn deposits.
The resource model blocks were classified into Indicated and Inferred Resource categories. The
basis for the classification varied. If the distance to the nearest composite was less than 50 meters and
composites from a minimum of 2 drillholes were used the block was classified as Indicated. If the
distance to the nearest composite was 50 to 90 meters the block was classified as Inferred.
No environmental, permitting, legal, title, taxation, socio-economic, marketing or other relevant
issues are known to the author that may affect the estimate of mineral resources. Mineral reserves can
only be estimated on the basis of an economic evaluation that is used in a preliminary feasibility study
53
or a feasibility study of a mineral project; thus, no reserves have been estimated. As per NI 43-101,
mineral resources, which are not mineral reserves, do not have to demonstrate economic viability.
14.8 Mineral Resource Statement
The mineral resource for the San Luis del Cordero project as of October 1, 2014 comprises
Indicated Resources and Inferred Resources (Table 14.7). All classes of resources are reported at an
AgEq 85 g/t cut-off.
Table 14.6 Mineral Resource Statement, San Luis del Cordero Project 1
Indicated
Tonnes
AgEq
g/t3,4
Ag g/t
Cu%
Zn%
Santa Rosa Vein
31,500
1022.6
827.8
1.21
1.98
631,125
200.8
86.1
0.76
1.02
Total Indicated
631,125
251.9
127.4
0.82
1.11
Inferred2
Tonnes
AgEq
g/t
Ag g/t
Cu%
Zn%
Santa Rosa Vein
218,437
955.4
716.4
1.12
3.62
2,566,875
214.9
95.7
0.72
1.26
2,566,875
296.2
156.7
0.82
1.57
Total Inferred
1.
2.
3.
4.
Mineral Resources are not Mineral Reserves because there are insufficient studies to demonstrate economic
viability.
It cannot be assumed that all or any part of an Inferred Resource will be upgraded to an Indicated or Measured
Resource as a result of continued exploration.
Resources are reported at a silver-equivalent cut-off grade of 85 g/t.
AgEq = Ag + [Cu x 22.046 x Cu price/Ag price * 31.013 + Zn x 22.046 x Zn price/Ag price x 31.103]. Metal prices
used in the formula: silver = US$19/oz, copper = US$3.00/lb, Zn = US$0.90/lb.
The resource estimate is constrained within the wireframe models. The 85 g/t AgEq cut-off is
based on similar Mexican deposits. Grade distribution and resource classification are shown in Figures
54
14.1 and 14.2)
Figure 14.1 Santa Rosa Vein and Santa Rosa East Skarn Resource
55
Classification
Figure 14.2 Santa Rosa Vein and Santa Rosa East Skarn AgEq Grade
Distribution
56
15.0 ADJACENT PROPERTIES
15.1 Relevant Data on Adjacent & Nearby Properties
The SLDC contains an intrusive contact type environment with potential for replacement or
skarn type precious metal base metal deposits and structurally controlled vein mineralization. A
number of other base metal skarn and replacement deposits occur in similar geological settings in
eastern Durango State. The Velardeña mining district, about 70km southeast of SLDC property, has
been mining from skarn-replacement, limestone replacement and epithermal veins since Spanish
times.
The Ojuela-Mapimi District, about 60km northeast of SLDC, was discovered by Spanish
prospectors in 1598 and the district had strong production by Compania Minera Penoles, S.A.
(“Penoles”) from 1894 till 1932 with production reported by Consejo de Recursos Minerales (“CRM”)
of 3,732,589 tonnes yielding 470 g/t Ag, 3.73 g/t Au and 15.8% lead with total district production
estimated at over 5,000,000 tonnes (Cardenas Vargas et al., 1993). The historic production is from
Mexican government publications and has not been verified by either Prospero or the writer. The
Ojela-Mapimi District is about 60km from the SLDC.
16.0 OTHER RELEVANT DATA AND INFORMATION
The writer is not aware of any data not included in this report that would make the report
misleading or would influence the writer’s opinion that the property warrants further exploration.
17.0 INTERPRETATION AND CONCLUSIONS
The SLDC property is situated in a geological and tectonic environment that hosts numerous
precious and base metal bearing skarn, replacement and base metal vein deposits. Previous work on the
SLDC property included a shaft and several levels of development on the Santa Rosa Vein, minor
development on the India Bonita vein and exploration drill programs. Drill programs carried out by
Apex Silver, Hochschild, Prospero Silver and Silver Standard outlined two mineralized deposits, the
Santa Rosa Vein and Santa Rosa East Skarn.
The Santa Rosa Vein, located at depth and along strike from the old Santa Rosa Mine
workings, is a structurally controlled narrow vein zone hosting highly anomalous silver grades with
associated copper and zinc mineralization. Due to its high silver grades, the Santa Rosa Vein has the
57
potential to impact future exploration and potential development of this property. The Santa Rosa East
Skarn deposit is located east of the Santa Rosa Mine workings along the contacts between quartz
feldspar porphyry and granodioritic bodies with limy Mesozoic sedimentary units hosting silvercopper-zinc mineralization. Both deposits remain open along strike and to depth. The drill hole
database and geological understanding are sufficiently reliable to support the resource calculation for
the Santa Rosa Vein and the Santa Rosa East Skarn deposits.
The specific gravity of 3.00 t/m3 used is reasonable for the drill data seen and deposit types, but
a detailed program of density measurements should be carried out to provide a definitive specific
gravity for each deposit.
The SLDC Property covers additional prospective contacts between quartz feldspar porphyry
and granodioritic bodies with limy Mesozoic sedimentary rocks). The favorable contact zone is mainly
covered by soil and alluvial deposits that require indirect geophysical and geochemical methods to
guide drilling and detect covered or buried mineralization. Exploration programs consisting of soil and
rock sampling and induced polarization conducted by Prospero and Silver Standard have identified
prospective areas for replacement or skarn deposits (La Puerta and El Canal showings) and have
outlined projected extensions of the Santa Rosa Vein, Santa Rosa East Skarn and India Bonita Vein
systems.
Previous drill results and the success of the exploration programs justify further drilling of the
SLDC as follows in priority order:
1.
2.
3.
4.
5.
6.
Extension to depth and to the west in the Santa Rosa Vein mineralized zone,
Upgrading the Santa Rosa Vein deposit to Measured and Indicated categories.
Extension at depth and to the East and definition of the Santa Rosa East Skarn,
Extension at depth, east and west of drill hole PSLC-17 in the El Canal target,
The extension at depth of La Puerta skarn.
The blind skarn adjacent to and in the HW of the Santa Rosa Vein.
18.0 WORK RECOMMENDATIONS
The primary focus of future drill programs should initially be the Santa Rosa Vein deposit
structure and its projected extensions. A detailed understanding of the size, grade and extents of the
Santa Rosa Vein could have a significant impact on any future exploration programs and potential
development of this property.
A 2 Phased program of 12,500 meters of HQ diamond drilling is recommended (Table 18.1).
Phase 1 would consist of a 2,500 meter drill program targeting extensions and definition of the Santa
Rosa Vein.
58
Depending on Phase 1 results, a 10,000 meter Phase 2 drill program targeting extensions and infill of the Santa Rosa East Skarn deposit and other advanced exploration targets is warranted. Initial
focus of Phase 2 should be on the Santa Rosa East Skarn extents. In-fill definition drilling would then
target thicker and/or higher grading areas of this skarn.
Table 18.1 Budget for Recommended Drill Programs
Type
Description
Phase 1 Santa Rosa Vein extension and
definition drilling
Total Length
2,500 meters
Phase 2 Santa Rosa East Skarn extensions, 10,000 meters
definition and exploration targets
Total
Drilling
12,500 meters
Estimated Cost
US$500,000
US$2,000,000
US$2,500,000
59
19.0 REFERENCES AND SOURCES OF INFORMATION
Addison, R., López, L., 2011. Summary Report on the Parrilla Silver Mine, Tate of Durango, Mexico.
Prepared for First Majestic Silver Corp. dated September 8, 2011.
Alegria, L., Diaz, C., Martinez, R., 2014. Exploration Activities at San Luis De Cordero Project,
Durango, Mexico. For Silver Standard Resources Inc., March, 2014.
Camprubi, A., Ferrari, L., Cosca, M.A., Cardellachi, E., and Canals, A., 2003. Age of Epithermal
Deposits in Mexico: Regional Significance and Links with the Evolution of Tertiary Volcanism.
Econ. Geol., Vol. 98, pp. 1029-1037.
Cardenas Vargas, J., Paraga Perez, J. de J., Merida Montiel, R., Macedo Palencia, R., and Rodriguez
Salinas, J. de J., 1992. Geological-Mining Monograph of the State of Zacatecas for Consejo de
Recursos Minerales, Publication M-2e.
Christopher, P.A., 2008. Technical Report on the San Luis Del Cordero Project, Durango State,
Mexico for Prospero Silver Corp., August 22, 2008.
Dobrescu, J. and Ko, K., 2008. Logistical Report for Prosper Silver Corp. Induced Polarization
Survey on the San Luis Del Cordero Project. Survey conducted by SJ Geophysics Ltd., dated July
2008.
Hulse, D.E., Black, Z., Gurr, K.D., Mohorta, D., 2013. NI 43-101 Technical Report Bolivar Mine,
Chihuahua State, Mexico for Sierra Metals Ltd. date May 31, 2013.
Montenegro, H., 2014. Determinacion Densidad Bulk for Silver Standard Resources. February 4,
2014.
Neff, D.H., Drielick, P.E., Orbock III, E.J.C., Hertal, M., Guajes and El Limon Open Pit Deposits
Updated Mineral Resource statement Form 43-101F1 Technical Report Guerro, Mexico for Torex
Gold Resources Inc. date June 18, 2012.
Perez Corona, J.L., 2007. Reporte de barrenacion con diamate primera etapa-Projecto San Luis del
Cordero, Durango: Internal Report Minera Hochschild Mexico, SA de CV, Julio 2007.
Polk, A., Trueman, A., Fox, J., Technical Report on Tejamen Silver Property, Durango State,
Mexico. For Oromex Resources Ltd. date October 3, 2006.
60
Prospero Silver Corp., 2008a. Procedure for sample collection, security, and data verification of
Mine Assay Samples. Memorandum Dated July 2008.
Prospero Silver Corp., 2008b. Procedure for sample collection and security of diamond drill hole
core samples for assaying. Memorandum Dated July 2008.
Rastad, S. and Dobrescu, J., 2008. Geophysical Report for Prospero Silver Corporation, 3D Induced
Polarization on the San Luis del Cordero Project. Draft report prepared by S.J.V. Consultants Ltd.,
dated July 2008.
61
20.0 CERTIFICATE OF QUALIFIED PERSON
I Terence W, Hodson, B.Sc., P,GEO.
I, Terence W. Hodson, with business address at 12426 23 Avenue, Surrey, British
Columbia, do hereby certify that:
•
I am a Professional Geologist registered (#109491) with the Association of Professional
Engineers and Geoscientists of British Columbia since 1992.
•
I am a graduate of the University of British Columbia ( B.Sc. Honours, 1980).
5. This certificate applies to the technical report entitled NI 43-101 Report On the Initial Resource
Estimate for the San Luis Del Cordero Project, Durango State, Mexico dated October 1, 2014.
6. I have practiced my profession in geology for 34 years with experience in exploration,
operations, project evaluation and resource estimation. I am a “Qualified Person” for the
purposes of National Instrument 43-101 (the “Instrument”).
7. My personal inspection of the Property was on August 15, 2014,
•
I am responsible for Sections 1.0 to 20.0 of the Technical Report.
•
I am independent of Prospero Silver Corp. as defined by Section 1.5 of the
Instrument.
•
I have no prior involvement with the Property that is the subject of the Technical
Report.
•
I have read the Instrument and the Technical Report has been prepared in
compliance with the Instrument.
•
As of the date of this 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.
.
Signed and dated this 18th day of November, 2014 at Vancouver, British Columbia.
Original document signed and sealed
by Terence Wesley Hodson, P.Geo.
Terence Wesley Hodson, P.Geo.
62

October 2014 Technical Report

Transcription

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