Technical Report for the Yanque Deposit, Peru. April 14, 2008(PDF

Transcription

Technical Report for the
Yanque Deposit, Peru
Prepared for
Zincore Metals Inc.
April 14, 2008
80554
Technical Report for the
Yanque Deposit, Peru
Prepared for
Zincore Metals Inc.
April 14, 2008
80554
Prepared by
Pincock, Allen & Holt
Aaron M. McMahon, P.G.
CONTENTS
1.0
2.0
Page
EXECUTIVE SUMMARY
1.1
1.1
1.2
1.3
1.4
1.5
1.6
1.1
1.1
1.1
1.2
1.2
1.2
Introduction
Geology and Mineralization
Exploration History
Drilling and Sampling
Mineral Resource Estimate
Interpretation and Conclusions
INTRODUCTION AND TERMS OF REFERENCE
2.1
2.1
2.2
2.3
2.4
2.5
2.1
2.1
2.1
2.1
2.2
Terms of Reference
Purpose of Technical Report
Qualified Persons and Participating Personnel
Terms and Definitions
Units and Abbreviations
3.0
RELIANCE ON OTHER EXPERTS
3.1
4.0
PROPERTY DESCRIPTION AND LOCATION
4.1
5.0
ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE
AND PHYSIOGRAPHY
5.1
HISTORY
6.1
6.1
6.2
6.3
6.1
6.1
6.1
6.0
7.0
Prior Ownership
Zincore Acquisition of the Accha Property
Production
GEOLOGICAL SETTING
7.1
7.1
7.2
7.1
7.1
Regional Geology
Local Geology
8.0
DEPOSIT TYPES
8.1
9.0
MINERALIZATION
9.1
10.0
EXPLORATION
80554 April 14, 2008
10.1
Page i
CONTENTS (Continued)
10.1
10.2
10.3
11.0
12.0
13.0
14.0
15.0
RTZ, MISOSA
Zincore
Exploration Potential
Page
10.1
10.1
10.2
DRILLING
11.1
11.1
11.2
11.3
11.1
11.1
11.2
RTZ
Zincore
Significant Mineral Intersections
SAMPLING METHOD AND APPROACH – YANQUE AREA
12.1
12.1
12.2
12.1
12.1
RTZ
Zincore
SAMPLE PREPARATION AND QA-QC
13.1
13.1
13.2
RTZ
Zincore
13.1
13.1
DATA VERIFICATION
14.1
14.1
14.2
14.1
14.1
14.1
14.1
14.1
14.2
RTZ
Zincore
14.2.1 Survey Data
14.2.2 Sampling Procedures
14.2.3 Database Validation
14.2.4 Geological Interpretation
ADJACENT PROPERTIES
15.1
15.1
15.2
15.3
15.4
15.5
15.1
15.1
15.2
15.3
15.5
Accha Area
Yanque East
Puyani Area
Azulcancha and Capayocc Areas
Yurac Area
80554 April 14, 2008
Page ii
Page
16.0
MINERAL PROCESSING AND METALLURGICAL TESTING
16.1
17.0
RESOURCE ESTIMATE
17.1
17.1
17.2
17.3
17.4
17.5
17.6
17.7
17.8
17.9
17.1
17.1
17.4
17.4
17.6
17.6
17.6
17.9
17.9
18.0
19.0
Topography
Drill Hole Database
Mineralization Model
Compositing
Block Model
Grade Modeling
Specific Gravity Model
Mineral Resource Classification
OTHER RELEVANT DATA AND INFORMATION
18.1
18.1
18.1
Community Relations
INTERPRETATIONS AND CONCLUSIONS
19.1
19.1
19.2
19.3
19.4
19.5
19.1
19.1
19.1
19.1
19.1
Adequacy of Procedures
Adequacy of Data
Adequacy of Preliminary Assessment Study
Compliance with Canadian NI 43-101 Standards
Conclusions
20.0
RECOMMENDATIONS
20.1
21.0
REFERENCES
21.1
22.0
ILLUSTRATIONS
22.1
23.0
ADDITIONAL REQUIREMENTS FOR DEVELOPING OR PRODUCING
PROPERTIES
23.1
CERTIFICATE OF QUALIFICATION
24.1
24.0
80554 April 14, 2008
Page iii
Page
TABLES
1-1
Inferred Resource Estimate
1.3
4-1
Concessions Summary
4.1
11-1
Significant Drill Hole Intersections
11.3
15-1
15-2
Accha Insitu Resource Estimate
Accha – Yanque Zinc Belt Project – Capayocc Drilling Results
15.2
15.5
17-1
17-2
17-3
Drill Hole Data – Basic Statistics
Block Model Geometry
17.1
17.6
17.9
FIGURES
4-1
4-2
Location Map
Yanque Concession Map
4.2
4.3
5-1
5-2
5-3
Government Road Improvement and Upgrade Route for Accha
Access from Yanque to Port of Mattarani
Electric Power Infrastructure
5.2
5.3
5.4
7-1
7-2
Regional Geology
Local Geologic Map of the Yanque Property
7.2
7.4
11-1
Drill Hole Location Map
11.4
15-1
Accha Yanque Zinc Belt Map
15.4
17-1
17-2
17-3
17-4
17-5
Assay Data Distribution Percent Zinc
Assay Data Distribution Percent Lead
Mineralized Envelope Cross Section View
Nearest Neighbor Zinc Grade Model Cross Section View
Nearest Neighbor Lead Grade Model Cross Section View
17.2
17.3
17.5
17.7
17.8
80554 April 14, 2008
Page iv
1.0
EXECUTIVE SUMMARY
1.1
Introduction
The Yanque deposit (the “Property”) is a zinc oxide/carbonate and lead sulfide/carbonate deposit located
in the southeastern cordillera of Peru. The property is 100 percent owned by Exploraciones Collasuyo
S.A.C. (“Collasuyo”), which is an indirect wholly owned subsidiary of Zincore Metals Inc (“Zincore”).
In this Technical Report (the “Report”), Pincock Allen and Holt (“PAH”) has generated an inferred
resource estimate for the Property.
1.2
Geology and Mineralization
The Property is located at the southern end of the Pucara Basin, a major lead-zinc metallogenic province
that is host to numerous economic mineral deposits. Yanque is approximately 30 kilometers southwest of
the Accha zinc oxide deposit that is owned by Collasuyo. The Yanque deposit consists of zinc oxide/
carbonate and lead carbonate/sulfide mineralization hosted in Ferrobamba limestone. The zone of
mineralization is tabular, near surface and in an area of moderate relief.
1.3
Exploration History
In 1995 and 1996, RTZ Mining and Exploration Limited (“RTZ”) carried out an exploration program that
consisted of prospecting, geochemical rock and soil sampling, stream sediment sampling, geological
mapping, trenching and diamond drilling. RTZ’s work demonstrated the presence of zinc-lead oxide
mineralization over an area measuring 1200 meters by 400 meters. Mineral del Suroeste S.A.C.
(“MISOSA”), a wholly owned subsidiary of Southwestern Resources Corp. (“Southwestern”) acquired the
Property in 2000 when RTZ failed to renew the concessions.
In 2003 MISOSA sampled the Churire and Yanque East zinc oxide showings in Ferrobamba limestones
within the Dolores 1 concession, which is adjacent to the west of the Apurimac batholith. Zinc-lead
values of potential economic interest were obtained from the surface sampling.
In 2006 Zincore acquired the Property from Southwestern and during 2007, Zincore drilled 21 HQ
exploration diamond drill holes, excavated six trenches and commenced structural geological mapping at
Yanque.
Mineralization remains open on the property and exploration potential is considered excellent both in the
immediate deposit area and close by.
80554 April 14, 2008
1.1
1.4
Drilling and Sampling
RTZ, through their Cusco office, completed a drilling program, which consisted of 1,769 meters in 16
holes, at the Yanque Property between March and July 1996. Between August 20, 2007 and October 18,
2007, Zincore drilled a total of 21 holes on the Property for a total of 2,560 meters.
Zincore’s sampling and quality assurance/quality control (QA/QC) program is consistent with current
industry standards. Core was placed in boxes and labeled by hole and interval. Site geologists logged
the core and identified sample intervals. Drill core was then transported to Zincore’s nearby Accha camp
where the identified samples were split and bagged under a project geologist’s supervision. These
samples were trucked to ALS Chemex, Lima (along with standard and blank samples) where they
underwent analyses for zinc (Zn), lead (Pb) and several other elements by both atomic absorption (AA)
and inductively coupled plasma mass spectrometry (ICP) methods.
In the RTZ reports describing their work in the Yanque area up to 1996, it is noted that Anamet
laboratories was used; however, analytical procedures, sample preparation, or security measures were
not reported.
1.5
The drill hole database provided by Zincore is composed of 43 core holes and trenches. From the drilling
and mapping, Zincore interpreted a mineralized envelope that outlined a moderately well defined
continuous mineralized zone. PAH composited the lead and zinc assay data from the drill holes down-thehole at 3-foot (approximately 1 meter) intervals and partitioned the model space into a series of blocks
measuring 5 x 5 x 3 meters. PAH generated grade models for zinc and lead. The mineralized envelope
was used as a hard boundary during the grade interpolation process. Table 1-1 is a summary of the
Yanque resources. There are no measured or indicated resources for the Property at this time.
1.6
Interpretation and Conclusions
PAH conclusions are as follows:
Geology and Mineralization: Yanque is a zinc oxide/carbonate and lead carbonate/sulfide deposit hosted
within Ferrobamba limestone. The zone of mineralization is tabular and occurs near surface in an area of
moderate relief.
Exploration: A total of 4,562 meters of drilling and trenching has been completed on the property. Sixty
percent of this was conducted under Zincore’s QA/QC program. PAH has reviewed this program and is of
the opinion that it is consistent acceptable industry practice. The balance of the drilling was conducted
by RTZ, but no information on their QA/QC program was available. As a result of this drilling, a zone of
zinc and lead mineralization was identified. This mineralization remains open in the immediate deposit
area to the Northeast, East and Southeast. There is additional exploration potential outside of the
80554 April 14, 2008
1.2
immediate deposit area to the Southeast identified by chip samples, soil samples, old mine workings and
outcrop.
Resources: The geologic resources identified by PAH are classified as inferred. Further drilling and
geologic work will be necessary to elevate the classification of these resources. An infill drilling campaign
should be designed to better define the distribution of zinc and lead grade. The discrete fault blocks
identified by Zincore should be incorporated into the resource estimate. Additional drilling is required
around the periphery of the deposit to verify the extents of mineralization.
TABLE 1-1
Zincore Metals Inc.
Yanque Property
Percent Zn + Pb
Tonnes
(ktonnes)
Cut-off Grade
7.0
6,356
6.5
7,083
6.0
7,520
5.5
8,498
5.0
9,621
4.5
10,258
4.0
11,113
3.5
12,361
3.0
13,720
2.5
15,442
2.0
17,714
1.5
20,721
1.0
25,546
0.5
33,426
0.0
59,538
80554 April 14, 2008
Average Grade
Average Grade
(Percent Zn)
(Percent Pb)
6.70
6.45
6.22
5.85
5.44
5.28
5.05
4.74
4.41
4.09
3.75
3.33
2.84
2.27
1.32
6.94
6.49
6.33
5.92
5.58
5.34
5.08
4.74
4.46
4.09
3.68
3.27
2.74
2.17
1.25
1.3
2.0
INTRODUCTION AND TERMS OF REFERENCE
2.1
Terms of Reference
Zincore Metals Inc. (”Zincore”) retained Pincock, Allen & Holt (“PAH”) to prepare a Technical Report (“the
Report”) for the Yanque zinc-lead oxide deposit (“the Property”), located in the Cusco Region in
southeastern Peru, approximately 90 kilometers south of the City of Cusco.
2.2
Purpose of Technical Report
This Report discloses updated mineral resources for the Property under the guidance of Canadian
National Instrument 43-101. PAH conducted two site visits of the Property over three days during
October/ November 2007 and February 2008. During the site visits, PAH toured the deposit area,
reviewed the sampling procedures and facilities, logged existing core, and conversed about the site
geology with the Project geologists.
2.3
Qualified Persons and Participating Personnel
The following person served as Qualified Person (“QP”) responsible for the preparation of the Report, as
defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects (CSA, 2005a, 2005b)
and in compliance with Form 43-101F1 (CSA, 2005c).

Mr. Aaron McMahon, P.G. (California), Geologist PAH Denver office (all Sections)
Mr. McMahon inspected the Property in October/November 2007 and February 2008. While on site, he
reviewed a selection of core holes, toured the core logging and sampling facilities, and examined outcrop
within the area of mineralization. Mr. McMahon also generated the geologic resource model for the
Property and tabulated the Property resources.
2.4
Terms and Definitions
The scope of work included an initial review of the available information and historical work conducted on
the Property, as well as a review of sampling, Quality Assurance-Quality Control (QA-QC), and geological
interpretation. In addition, a resource model was developed for estimation and classification of the
Property resources according to generally accepted industry practices.
During the site visits, information was reviewed, including:
Data

Topographic base
Drill hole locations
80554 April 14, 2008
2.1

Drilling and sampling methods
Geological and geotechnical logging procedures
Sample preparation protocols
Assaying protocols for major elements
QA-QC programs
Density (specific gravity) determination and sufficiency of data by material type
Data entry, verification and archiving procedures.
Data Analysis

Core recovery
Geological interpretations
Compositing procedures
Database validation and verification of geological interpretation consistency were conducted. The
geologic model and mineral resource estimate was prepared under the supervision of Aaron McMahon.
An assessment was also made of the quality of these data relative to industry standard practices.
2.5
Units and Abbreviations
All measurement units are metric units, and currency is expressed in US dollars, unless otherwise noted.
The following abbreviations may be used in this report:
Abbreviation
Unit or Term
AA
Ag
CSA
DXF
ICP
km
ktonnes
kV
m
MISOSA
MW
NI 43-101
NN
PAH
Pb
QA/QC
QP
RTZ
Atomic Absorption
Silver
Canadian Standards Association
Drawing Exchange Format
Inductively Coupled Plasma Mass Spectrometry
kilometers
kilotonnes
kilovolts
meters
Minera del Suroeste S.A.C.
Megawatts
Canadian National Instrument 43-101
Nearest Neighbor
Pincock, Allen and Holt
Lead
Quality Assurance/Quality Control
Qualified Person
Rio Tinto Plc
80554 April 14, 2008
2.2
SG
US$
Zn
80554 April 14, 2008
Specific Gravity
United States of America Dollars
Zinc
2.3
3.0
RELIANCE ON OTHER EXPERTS
The author has relied, and believes there is a reasonable basis for this reliance, upon Zincore regarding
mineral tenure as described in Section 4, electricity and water supply infrastructure as described in
Section 5 and community relations as described in Section 18.
80554 April 14, 2008
3.1
4.0
PROPERTY DESCRIPTION AND LOCATION
The Property consists of two mining exploration concessions named Jaguar-1 and Jaguar-2 which are 100
percent held by Collasuyo. The Property covers 1,600 hectares. Zincore also indirectly holds 55
contiguous mining exploration concessions which total approximately 45,000 hectares. The entire 57
exploration concession land position is referred to as the Accha-Yanque Belt. Exploration work on the
other 55 concessions is detailed in Section 15 Adjacent Properties.
The Property is located approximately 90 kilometers south of the City of Cusco, Peru in the cordillera of
southeastern Peru, approximately 85 kilometers northwest of the Tintaya Copper Mine. The Project lies
within Ingemmet Map Sheet 29R at 14° 10S latitude, 72° 04W longitude (Figure 4-1).
The locations of the concessions are shown in Figure 4-2 and the Yanque Property details are tabulated
in Table 4-1.
TABLE 4-1
Zincore Metals Inc.
Yanque Property
Concessions Summary
Claim
Claim Name
Number
JAGUAR-1
01-01647-02
JAGUAR-2
01-01648-02
Date
2/20/2003
1/31/2003
Map
29 - R
29 - R
Owner
COLLASUYO
COLLASUYO
TOTAL
Area
Hectares
800
800
1,600
Collasuyo’s office is located in Lima, Peru and the concessions are subject to all the terms and conditions
of Peruvian mining law.
Under Peruvian law, the right to explore for and exploit minerals is granted by the government by way of
concessions. A Peruvian mining concession is a real right, independent from the ownership of surface
land on which it is located, even when both belong to the same person. There are no restrictions or
special requirements applicable to foreign companies or individuals regarding the holding of mining
concessions in Peru unless the concessions are within 50 kilometers of Peru's borders. None of the
concessions are so located. The rights granted by a mining concession can be defended against possible
claims by third parties, transferred, or sold. In general, a mining concession may be the subject of any
transaction or contract. The basic unit for newly claimed mining concessions is 100 hectares. Buildings
and other permanent structures used in a mining operation are considered real property additions to the
concession.
The application for a mining concession involves the filing of documents before the mining administrative
authority. The mining concession boundaries are specified in the application documents, with no
requirement to mark the concession boundaries in the field since the vertices of the concession are fixed
80554 April 14, 2008
4.1
by UTM coordinates. Because the location of the concession is not dependent on the location of markers
placed on the ground, it is not necessary to do a land survey to legally describe the locations of
concessions.
In order to develop exploration or exploitation activities, the holder of a mining concession must purchase
the surface land required for the project or reach agreement with the owner for its temporary use. If this
is not possible, a legal easement may be requested from the mining authorities however such easements
have been rarely granted in recent years. The owner of the surface rights covering the Yanque
concessions is the community of Yanque. Zincore has negotiated an agreement with the community for
temporary use of the surface lands to enable the company to conduct its exploration programs. Further
agreements with the community or a purchase of the land would be required in order for a mine to be
developed on the Property.
Mining concessions are irrevocable as long as their holders comply with the annual fee ("vigencias") of
US$3.00 per hectare and any penalties by June 30th of each year. The concession holder must sustain a
minimum level of annual commercial production of US$100 per hectare in gross sales within six years
following the grant of the concession. If the concession has not been put into production within that
period, then the concession holder must make an additional payment ("Penalty") of US$6.00 per hectare
for the 7th through 11th year following the granting of the concession, and of US$20.00 per hectare
thereafter. The concession holder may be exempted from the Penalty if the investment made during the
previous year was 10 times the Penalty (i.e., US$60 per hectare per year 7 through to 11).
In the case of Jaguar concessions #1 and #2, sufficient investment was declared to the Peruvian
government in the Declaracion Annual Consolidada D.A.C-2006 to cover the exploration expenditure
requirements for 2006, so penalties were not required to be paid in 2007. The vigencias payable for
2007 (US$3,000 per concession) for the two concessions (total US$ 6,000) has to be made prior to June
30, 2008.
With the exception of the Peruvian government’s royalty, there are no other royalties or encumbrances to
the Property. The Peruvian government’s royalty is consideration that must be paid by all concession
holders in Peru for the extraction of mineral resources. The mining royalty is between 1 and 3 percent of
the value of the mineral concentrate or equivalent, calculated in accordance with price quotations in
international markets. The mining royalty payable is: (a) 1 percent for annual sales of concentrates
under US$ 60 million; (b) 2 percent for annual sales of concentrates from US$60 million to US$120
million; and (c) 3 percent for annual sales of concentrates in excess of US$120 million.
There are no known environmental liabilities to which the concessions are subject.
Early stage exploration work does not require any permits; however, drilling programs require permits
with the type of permit being affected by the type of program. Permits for the drilling programs at the
Property are in place. Further permits would be required to develop a mine on the Property.
80554 April 14, 2008
4.4
5.0
ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE
AND PHYSIOGRAPHY
The Property is located in the high Andes Mountains at an elevation of 3,400 meters to 3,600 meters
above sea level. This is the high alpine region, and is characterized by rugged mountain peaks, rocky
landscapes and steep talus slopes barren of vegetation with intervening areas of more gently rolling
tundra-like sectors.
The Property is accessible by a well maintained gravel road from Cusco to Capacmarca then by a single
track siding from the provincial highway north of Colquemarca. The total distance is approximately 180
km. Current government road improvement projects in the area will upgrade the existing road from
Cusco to Yanque via Colcha and shorten the overall travel distance to approximately 130 km (Figure 5-1).
The site is also accessible from the south via Velille and Colquemarca, passing the existing mining
operations at Tintaya and eventually to Arequipa and the port of Matarani. Total road distance from the
Yanque site to the port of Matarani is 580 km via this south route (Figure 5-2).
The climate at the elevation of the Property can be extreme, ranging in temperature from -20o Celsius to
+20o Celsius. A rainy season in the summer months from November to April makes travel more difficult
during this season; however, it is possible to work year-round. A meteorological station was installed
near the Project site in April 2007 to collect climatic data.
The Southeastern National Power Grid, a 133-kV transmission line that supplies power from a substation
near Cusco to the Tintaya mine, goes through the small town of Combapata located 60 kilometers east of
the Property. There is sufficient power available on this grid to develop a mining project on the Property
though a new line would be required to tie into this transmission line. A rail line and all weather gravel
road also pass along this corridor to the east (Figure 5-3).
A detailed baseline water study has been ongoing in the Property since mid-2006. The preliminary report
concluded that there is sufficient reliable water supply to support mining operations at the Property.
There are no permanent residents on the Property. The nearest village to the Property is the village of
Yanque which is approximately 1 kilometer to the east. Yanque has a population of approximately 800
residents. The nearest major center of population is the city of Cusco. Cusco has a population of
approximately 300,000 residents and has the services required services to support exploration at the
Property.
The Yanque exploration camp operates as a satellite camp to the Accha exploration camp. It is well
established with facilities to house up to 20 people year-round including meal preparation and
appropriate sanitation. Phone and internet communication is available to provide efficient transfer of
information.
80554 April 14, 2008
5.1
6.0
HISTORY
6.1
Prior Ownership
The Peruvian subsidiary of Southwestern Resources Corp. (“Southwestern”), a TSX listed mineral
exploration company, called Minera del Suroeste S.A.C. (“MISOSA”) acquired title to the two Jaguar
concessions in 2000. During the 1990s the concessions were held by Rio Tinto PLC (“RTZ”). In 1995 and
1996, RTZ carried out an exploration program that consisted of prospecting, geochemical rock and soil
sampling, stream sediment sampling, geological mapping and diamond drilling. More details on these
programs can be found in Section 12, Exploration, and Section 13, Drilling. MISOSA acquired the Yanque
concessions in 2000 when Rio Tinto failed to renew the concessions.
MISOSA completed little additional work on the Project between 2001 and 2004 due to low zinc prices
and other priorities. In 2005, due to the improvement in zinc prices, MISOSA began a re-evaluation of
the Project which included a review of metallurgical processing options, geological review of the Project
and adjacent properties, prospecting in the region and additional concession staking.
6.2
Zincore Acquisition of the Yanque Property
In 2006 Southwestern commenced a process to assess alternatives to advance the exploration and
development of the Yanque Property and the Accha-Yanque Belt in general. This process resulted in a
decision to spin out the Yanque Property, the adjacent Accha-Yanque concessions and other zinc
properties into a new public zinc company. To facilitate this transaction the Yanque Property and other
properties were transferred to Collasuyo, Zincore’s Peruvian subsidiary.
In August of 2006, Zincore issued 32 million common shares to Southwestern in exchange for assets
transferred to Collasuyo, working capital and certain other assets. In November, 2006 Zincore completed
an initial public offering of common shares and commenced trading on the TSX thereby reducing
Southwestern’s ownership in Zincore to approximately 50 percent.
6.3
Production
No minerals have been extracted from the Yanque Property for commercial production.
80554 April 14, 2008
6.1
7.0
GEOLOGICAL SETTING
7.1
Regional Geology
A major regional carbonate basin of Triassic-Cretaceous age, the Pucara Basin which extends for over
1,500 kilometers in southern Peru is a major lead-zinc metallogenic province that is host to numerous
economic mineral deposits. The Property is located at the southern end of the Pucara Basin. The basal
units in the region belong to the Jurassic-Cretaceous Yura Group (Figure 7-1) consisting of black shales,
quartzites and minor limestones of the Soraya Formation and red bed shales of the Mara Formation.
These rocks are broadly contemporaneous with the Chicama and Goyllarisquizga Groups of central Peru.
These units are unconformably overlain by the Middle to Upper Cretaceous Ferrobamba Formation
consisting of micritic and bituminous silty limestones.
The Ferrobamba Formation limestone hosts the mineralization at Yanque as well as the large copper rich
skarns of the Bambas district further south. The Mesozoic rocks have been intruded by dioritegranodiorite of the Apurimac batholith believed to be Oligocene in age (Noble et al., 1984).
An altered and mineralized diorite which is interpreted as being related to the Apurimac batholith
outcrops immediately east of the main mineralized area and is believed to have played a role in the
emplacement of mineralization on the Property. Puno Group sandstones and conglomerates of probable
Oligocene-Miocene age are more than 1.5 kilometers thick in the region, and unconformably overlie the
Mesozoic rocks.
The Property lies within the northeast quadrant of 1:100,000 scale Peruvian Government map No 29-r
and is covered by Boletin No 35: Geologia de los Cuadrangulos de Chalhuanca, Antabamba y Santo
Tomas, 1981 (Gutierrez).
7.2
Local Geology
The age of the stratigraphic units, the diorite intrusives and the felsic dykes and tuffs on the Property
have not been verified by fossil identification or by standard scientific age dating techniques. The oldest
rocks exposed on the Property consist of quartzite, with interbeds of pale green and red siltstone and
silty shale, greenish gray sandstone and minor dark gray to black carbonaceous pyritic shale presumed to
belong to the Soraya Formation. These are unconformably overlain by the pale yellow and light gray
sandstone and mudstone units of the Mara Formation. In turn, these strata are overlain by the midCretaceous Ferrobamba Formation limestone and limestone breccias, which hosts the zinc and lead
mineralization at Yanque.
The base of the sequence is dominated by red beds and thicker bedded quartzite (5-20 m thick)
characterized by crackle breccias, fault gouge, pyrite and silica stockwork veins and deep penetrating
surface weathering down fractures and faults. The contact between the altered and weathered limestone
80554 April 14, 2008
7.1
breccia and the underlying quartzite is a narrow transition over about 10-20 cm, and in most cases the
contact is fault gouge.
The Ferrobamba limestone, characterized by many different breccia types, was initially a tectonic fault
scarp or debris flow breccias (formerly described as conglomerate) triggered by basement growth faults.
The permeability of these stratabound breccia horizons created favorable sites for mineral bearing
hydrothermal fluids and associated alteration. Periodic injections of gas-charged hydrothermal fluids
resulted in the formation of intensely altered, and hydro-fractured breccia zones, which typically exhibit
multiple phases of hydrothermal alteration and brecciation.
Diorite intrusions east and northeast of Yanque village are fresh and unaltered, where as diorites in the
Yanque Property have undergone strong argillic alteration. A general NE (70°) trend of diorite outcrops is
evident at Yanque and may represent major NE structures which controlled its’ emplacement. Felsic aplite
dykes, which cut all rock units including mineralization along NS, EW and NE fracture zones, are inferred
to be the youngest rocks on the Property. They are likely sourced to extrusive equivalents such as
pyroclastic flows and tuffs, which occur near the southern limits of the Yanque Property.
The structural history at Yanque is more complex than initially presented. Fold structures in the
mountains well outside the Yanque project area are likely the result of NE/SW compressional tectonics
related to the Andean Orogeny. On the cliff faces of the mountain peaks to the southeast of the Yanque
project area, a nappe structure is clearly visible where recumbent folds with horizontal axial planes are
overturned to the west implying a SW to NE compressional event. Near the margins of the Yanque
project area, 2-4 km to the northwest and southeast, thickly bedded quartzite of the Soraya Formation
exhibits broad upright anticlines and synclines with faulted and broken axial planes.
A competent thick quartzite unit 50+ meters thick, characterized by broad upright anticlines and synclines
with 200+ m wavelengths, forms the footwall sequence to the Yanque Property. Fold axes strike between
90° and 110° and exhibit shallow plunge angles of 5° to 10° to the southeast. The crestal regions of the
anticlines are commonly broken along axial planes, and these typically exhibit crackle breccias and mosaic
breccias proximal to fault zones. The subsurface distribution of the quartzite underlying most of the
Yanque Property appears to be block faulted and abrupt changes in the basement relief can be as much
as 40 m in drillholes spaced as little as 50 m apart. Faults controlling the margins of the blocks may
control the distribution of the mineralization and/or may be mineralized themselves. Down dropped
blocks of quartzite are associated with finely laminated, pyritic black shale lithologies, indicative of “third
order” sub-basin development along the margins of growth faults.
On the Yanque Property, there is a strong relationship between structural deformation and mineralization,
as most of the mineralization is associated with breccias and appears to be located at or near the
intersection of cross-cutting structures. Detailed mapping has identified three distinct structural trends
associated with mineralization on the Yanque Property. These trends are: north-south, east-west and
northeast-southwest. Post mineral thrust faulting and associated reverse faulting and folding are a
function of SWNE compressional tectonics. The major north-west trending thrust fault, the “Valley Fault,”
which transects the entire length of the Yanque Property, shows evidence of later strike-slip movement.
80554 April 14, 2008
7.3
8.0
DEPOSIT TYPES
The Yanque deposit is a tabular zinc-lead body consisting of Zn oxide, Zn carbonate, Pb carbonate and Pb
sulfide mineralization. Currently, the deposit has been outlined over an area of approximately 900m by
500m striking in a NW direction. The deposit is relatively continuous between drill holes along sections
and follows the gentle dip to the East of the sedimentary units.
Stratabound and fault/fracture controlled zinc oxide and galena-matrix breccia mineralization is hosted
within the Ferrobamba limestone formation, and is intimately associated with multiple pulses of
hydrothermal fluid flow, resulting in complex breccias and intense alteration. There is an intimate
relationship between limestone breccia and mineralization. Most of the mineralization is associated with
breccias that appear to be located at, or near the intersection of large fault structures. Some of these
faults may be growth-faults which controlled the development of “third-order” basins on the quartzite
basement.
Hydrothermal fluids were injected into the Ferrobamba limestone, where they deposited galena (Pb
sulfide) and presumably Zn sulfides. Secondary oxidation of the deposit has re-precipitated all zinc to
either smitsonite (Zn carbonate), hemimorphite (Zn oxide), or other non-sulfide phases. Preliminary
mineralogical studies done to date indicate that a portion of the Zn is also present in fine clays but more
work is required to better define this relationship. Some Pb has been re-precipitated as cerrusite (Pb
carbonate); however, a significant amount of galena remains. There are some field indications that the
galena may be related to a different and later stage of mineralization.
Recent drilling has indicated that the footwall quartzite is block faulted, producing extreme relief of 20-40
m in holes only 50 to 75 m apart. In many instances, these faults do not propagate to surface; however,
their existence is also suggested by abrupt thickening of the overlying Ferrobamba limestone breccias.
The fault boundaries and their inferred “growth-faults” may have been important in developing “thirdorder” basins within down-dropped basement blocks, an important environment for localizing mineral-rich
hydrothermal fluids and forming MVT and Irishtype carbonate-hosted mineral (Zn-Pb-Ag) deposits. The
genetic origin of the deposit is not well understood at this time, however, and more metallogenic studies
are required.
80554 April 14, 2008
8.1
9.0
MINERALIZATION
Faults and fractures may have an important control on mineralization, particularly where they intersect
favorable limestone lithologies such as the permeable limestone breccias. Reactivation of these faults
may be causing break-up and dislocation of the mineralization. However, drill holeYAD-04, collared close
to the trace of the Valley Fault, intersected 52 meters of 6.8 percent Zn and 6.1 percent Pb suggesting
that major structures could be important in developing significant ore shoots.
Stratabound and fault/fracture controlled zinc oxide and galena-matrix breccia mineralization is intimately
associated with multiple pulses of hydrothermal fluid flow, resulting in complex breccias and intense
alteration. There is an intimate relationship between the Ferrobamba limestone breccia and
mineralization. Most of the mineralization is associated with breccias that appear to be located at or near
the intersection of large fault structures. Some of these faults may be growth-faults which controlled the
development of third-order basins on the quartzite basement.
The Ferrobamba limestone is characterized by many different and complex-tectonic breccia types. These
likely originated as stratabound, debris flow breccias shed off a series of fault-scarps associated with
basement growth faults. The permeability of these stratabound breccia horizons created favorable sites
for mineral-bearing hydrothermal fluids to develop zones of fairly continuous mineralization. Episodic
injections of gas-charged hydrothermal fluids resulted in the formation of intensely altered, complex
breccia zones, which typically exhibit multiple phases of hydrothermal alteration and brecciation.
Pervasive iron oxide and manganese oxide hydrothermal alteration and brecciation has obliterated all
primary features of the host rock.
The intersection of the NS and EW fractures with the closely spaced NE striking fractures is interpreted to
be an important control on the galena matrix breccias and veins as highlighted by the significant number
and distribution of the old workings common at the East Block and Ridge Zone. Similar galena
mineralization has been intersected in drillholes YA-09, YA-14 and YA-17 at the Ridge Zone. The East
Block and Ridge Zone commonly exhibit stratabound zinc oxide mineralization. Surface showings in the
East Block include the significant stratabound mineralization encountered in Trench 1 (17 percent Zn, 2.5
percent Pb across 32.5 meters) and intersected in drillholes YA-05 and YA-20.
The transition from the strongly altered limestone breccia to the underlying siliciclastic units is sharp and
generally faulted. The footwall units are generally only weakly altered and unmineralized except for the
occasional stockwork-type pyrite and silica veins and hornfels alteration (Pride, K. 2007).
80554 April 14, 2008
9.1
10.0
EXPLORATION
10.1
RTZ, MISOSA
In the 1990s the concessions comprising this Area were held by RTZ. In 1995 and 1996, RTZ carried out
an exploration program that consisted of prospecting, geochemical rock and soil sampling, stream
sediment sampling, geological mapping and diamond drilling (Section 13, Drilling, for details). MISOSA
acquired the Yanque area in 2000 when RTZ failed to renew the concessions.
The Dolores concessions are immediately adjacent to the east of the Yanque Area. In 2003 MISOSA
sampled the Churire and Yanque East zinc oxide showings in Ferrobamba limestones within the Dolores 1
concession, which is adjacent to the west of the Apurimac batholith. Zinc-lead values of potential
economic interest were obtained from the surface sampling.
Within the Yanque Property geological mapping, prospecting, soil and rock sampling and drilling of 13
short holes indicated the presence of zinc-lead oxide mineralization over an area measuring 1,200 meters
by 400 meters (Carman et al, 1996). Argento drilled an additional three holes on the Property in 1997.
Zinc-lead mineralization post-dates the major brecciation event and occurs in veins and fractures, which
cut the calcareous units and as matrix replacements of the original breccias. Zinc mineralization in
outcrop consists entirely of secondary oxide-carbonate minerals (hemimorphite, smithsonite, zincite, MnZn oxide minerals). Lead mineralization occurs both as galena and cerrusite. Limonites after pyrite occur
sporadically, although the system appears to be generally pyrite-poor.
On the basis of the available data, RTZ (Carman, 1996) considered that several tabular bodies each up to
tens of meters thick and possibly inter-connected, host oxide zinc mineralization (one to ten percent
combined) in calcareous breccias within 100 meters of the surface. This mineralization is continuously
exposed over an area of approximately 1200 meters by 400 meters. Within this larger mineralized
interval, high-grade bodies (greater than 15 percent combined Pb-Zn) occur locally in fault or breccia
controlled pods. A general zonation of Zn-rich mineralization overlying Pb-rich mineralization was
observed in several drill holes.
Only one significant sulfide intersection was found (YAD010) underlying the intrusive. This intersection,
in bituminous layers within quartzite and shale, contains about five percent pyrite on average.
10.2
Zincore
During 2007, Zincore drilled 21 HQ exploration diamond drill holes for a total of 2,450 m, excavated
seven trenches and commenced structural geological mapping at Yanque. These holes were designed to
investigate the geometry of the mineralization and expand upon the mineralization. In general the holes
successfully intersected zinc and/or lead mineralization in previously drilled areas, and some holes
extended mineralization with similar grades.
80554 April 14, 2008
10.1
10.3
Exploration Potential
Mineralization remains open on the Property and exploration potential is considered excellent both in the
immediate deposit area and close by. The deposit is open to the East, the Southeast and to the Northeast
near the contact with the altered intrusive. To the north and immediately to the west, the exploration
potential is limited by a major fault and a steep cliff.
Results of the 2007 exploration program have highlighted strong soil and rock chip anomalies over more
than one kilometer to the southeast of the main mineralized area. Several pits and small adits with Pb
stringer mineralization have been located near the contact with the altered intrusive to the northeast over
a distance of 250 to 300 meters and remain to be drill tested.
The recommended drill program will focus initially on expanding the limits of the currently defined
inferred resource and test some of the exploration targets that have been defined to date by the ongoing work.
The first phase of drilling will include five holes aimed at increasing the resource and three holes to test a
recently identified geophysical anomaly within the altered intrusive. The geophysical target covers an
area of roughly 1.0 km by 2.0 km and is centered over the main area of outcrop of the intrusive. The
anomaly begins at approximately 200 m from the surface and remains open at depth. The three
proposed holes will test the anomaly down to 350 to 450 m depth.
Of the resource definition holes, three will be testing the northern extension of the deposit where old
Spanish workings have been located. The other two will be located to the south of the deposit. These
holes are designed to test the southern continuity of two interpreted mineralized corridors rich in lead at
depth. The most easterly mineralized corridor is characterized by hydrothermal breccias with galena
matrix. These mineralized corridors are clearly different to the mineralization which outcrops further to
the north that is characterized by zinc oxide values with generally low lead.
In addition to the priority drilling targets described above, some holes will be drilling in the strong leadzinc geochemical anomaly located a few kilometers to the southeast of the main deposit area. These
holes will be located once on-going field work is completed. If drilling is successful in identifying
extensions of the deposit to the north and south, additional holes will be designed based on results. A
total of 8,000 meters of drilling has been budgeted for the 2008 campaign.
80554 April 14, 2008
10.2
11.0
DRILLING
11.1
RTZ
RTZ, through their Cusco office, completed a drilling program, which consisted of 1,320 meters in 13
holes, at the Yanque prospect between March and July 1996. Argento drilled an additional 499 meters in
three holes on the Property.
The drilling as well as the surface mapping and sampling indicated that the Yanque zinc-lead
mineralization is hosted predominantly by brecciated sedimentary units. Higher grade mineralization
occurs in brecciated limestones and within the calcareous portions of polymictic breccias which consist of
clasts of Mara formation shales and Ferrobamba limestone. Some clasts of intrusive rock (dioritegranodiorite) are found within the breccias and in particular adjacent to the intrusive rock contact in the
hangingwall.
Exploration of the Yanque Area mineralization is at an early stage so the overall form of the mineralized
zones is poorly understood. The mineralization at Yanque was interpreted by RTZ (Carman, 1996) to
consist of several tabular bodies up to tens of meters thick that may be connected over an area
measuring 1,200 meters by 400 meters. Within this area, higher grade zones (greater than 15 percent
combined lead+zinc) occur locally in fault or breccia controlled pods.
Apart from the occasional stringer of galena or disseminated pyrite grain, the lead-zinc mineralization is
of the zinc oxide type. Drill hole YAD010 intersected a zone of about five percent pyrite on average in
bituminous layers in quartzite and shale immediately underlying the intrusive.
11.2
Zincore
Between August 20, 2007 and October 18, 2007, Zincore drilled a total of 21 holes on the property for a
total of 2,560 meters. All holes were HQ size core and the core was transported to the Accha main camp
for sampling and storage.
Core boxes were well identified with aluminum tags recording. Core runs were well marked with wooden
pieces placed in the box. Core boxes were transported each day from the drill site to the storage shed at
the property. Boxes were closed during transportation. Original drill logs, including geological
observations and recovery information, are available at the Property site.
Core logging was completed in a manner to facilitate the construction of cross sections and a resulting
block model. To help achieve both these goals, drill logging software (Drill King) was utilized by Zincore.
A number of logging codes were inputted into the Drill King dictionary. These codes were designed to
reflect the broad lithological units recognized in the geological mapping.
80554 April 14, 2008
11.1
PAH is of the opinion that procedures meet acceptable practices for core drilling in the exploration and
mining industry.
11.3
Significant Mineral Intersections
A list of significant intersections from the Zincore drilling program is presented in Table 11-1. Figure 11-1
displays the drill hole locations for the Property.
80554 April 14, 2008
11.2
TABLE 11-1
Zincore Metals Inc.
Yanque Property
Significant Drill Hole Intersections
Intersection along drill hole
Hole No.
From (meters)
YA-1
YA-2
YA-3
including
Including
YA-4
YA-5
including
YA-6
YA-7
YA-8
YA-9
YA-10
including
including
including
including
Including
Including
YA-11
YA-12
including
including
YA-13
including
Including
YA-14
YA-15
YA-16
YA-17
Including
YA-18
YA-19
Including
Including
YA-20
Including
YA-21
0.10
0.00
17.00
47.85
0.50
0.50
20.50
0.10
16.10
44.30
61.30
2.00
5.50
27.50
No significant values
0.00
8.00
0.00
0.00
34.00
53.00
70.00
81.00
114.00
59.20
27.80
34.80
98.00
112.10
0.00
0.00
25.00
0.00
18.00
51.50
13.00
0.00
7.00
20.00
3.20
4.00
33.00
48.40
76.20
2.50
13.50
Drill Hole
Intersection
1
(meters)
16.10
13.00
32.00
58.35
27.50
9.50
26.50
8.10
19.10
50.30
73.30
22.50
11.50
43.00
16.00
13.00
15.00
10.50
27.00
9.00
6.00
8.00
3.00
6.00
12.00
20.50
6.00
15.50
Zinc
(%)
4.75
(2)
12.73
3.93
1.18
6.65
9.41
7.71
1.83
8.00
1.21
0.45
5.78
13.87
1.44
3.00
13.50
134.00
8.20
37.00
68.00
79.00
88.00
134.00
69.20
62.80
44.80
118.10
118.10
34.60
15.00
32.40
15.00
32.00
61.50
36.00
3.00
5.50
134.00
8.20
3.00
15.00
9.00
7.00
20.00
10.00
35.00
10.00
20.10
6.00
34.60
15.00
7.40
15.00
14.00
10.00
23.00
2.84
1.28
1.60
5.91
3.62
4.01
3.48
1.61
1.22
1.66
2.98
7.17
2.64
2.27
2.24
3.87
0.31
3.14
2.73
0.52
2.16
8.37
5.38
0.86
1.08
1.20
0.82
1.85
0.41
3.00
1.12
2.13
3.04
4.68
7.10
4.71
3.94
9.80
0.98
0.62
8.32
0.28
14.00
12.00
35.00
14.20
23.00
90.50
72.20
81.30
27.50
25.50
14.00
5.00
15.00
11.00
19.00
57.50
23.80
5.10
25.00
12.00
4.23
9.57
0.57
3.09
4.35
0.76
0.71
0.32
11.31
16.15
0.71
1.19
5.44
1.32
0.52
5.33
8.39
12.05
3.81
6.49
To (meters)
Lead
(%)
1.34
1.13
0.86
(2)
8.05
0.88
0.45
1.23
0.46
0.70
0.58
3.78
1.78
1.31
1.57
(1) Estimated true width not known
(2) Contains some samples greater than 30% zinc or 30% lead. Average grades for these
intervals have been calculated using 30% for these samples until re-assaying of such
samples is completed.
Yanque Trench Results:
Intersection along drill hole
Hole No.
From (meters)
To (meters)
TY-1
including
Including
TY-2
including
Including
80554 April 14, 2008
0.00
5.00
19.90
0.00
0.00
15.00
34.60
14.90
30.60
18.00
6.00
18.00
Drill Hole
Intersection
(meters)1
34.60
9.90
10.70
18.00
6.00
3.00
Zinc
(%)
16.05
19.69
22.14
12.17
13.31
29.40
Lead
(%)
3.51
5.09
4.36
0.58
0.82
0.85
11.3
12.0
SAMPLING METHOD AND APPROACH - YANQUE AREA
12.1
RTZ
In the RTZ reports describing their work in the Yanque Property up to 1996 it is noted that Anamet
laboratories was used; however, analytical procedures, sample preparation or security measures were not
reported. The reported analytical results suggest that lead and zinc were determined by dissolution
followed by an "ore grade" method of analysis while other elements were determined at the geochemical
level by a multi-element analytical technique.
12.2
Zincore
Once retrieved from the drill platform, all drill core boxes were first checked to confirm that the intervals
marked for the drill runs were in order. Any discrepancy was reported to the drill foreman and differences
were sorted out with the driller prior to moving forward to the next steps. The top part of the core boxes
were then painted with a white background and a more permanent black ink marker was used to indicate
hole number, drilling interval and box number within the drill hole.
The boxes were then transferred to the core logging facility at the Yanque camp where core logging was
done by the project geologists using laptop computers to input the logging information directly into the
Drill King database. The project geologist also marked the sample intervals and inserted the numbered
paper sample tags and aluminium sample interval markers in the boxes. Spaces were left in the number
sequence for insertion of blanks and standards. Sample length was one meter within the mineralized
zones and two meters outside the zones. Shorter sampling intervals were taken occasionally to adjust for
lost core intervals. Core boxes were photographed using an 8.1 mega-pixel digital camera. The core
photos were transferred on to the site computer database and CDs which were sent to the Lima office on
a regular basis. Copies of these files are maintained in both the Lima and Vancouver offices as well as on
site. Updated copies of the Drill King database were also sent regularly to Lima and Vancouver where
they are available for review.
Once these initial procedures were completed, the core boxes were packed and transported by company
trucks to the main Accha camp for sampling and storage. At the Accha camp, the field assistants cut the
core in half using a circular diamond rock saw and returned the boxes to the logging facility for sampling
under supervision by a project geologist. Occasionally some samples from very friable oxidized core were
split using a knife and spoon to collect the soft material from the box. The numbered metal tags for
sample intervals as well as one of the original paper tags with sample number were left in the core box
for future reference.
The project geologist supervised the sampling process and bagging ensuring that all bags were correctly
numbered and that numbered plastic safety tags were put on all large storage bags prior to shipment to
the laboratory in Lima. A private trucking company was used for all sample shipments to Lima and
records of all shipments are kept on site at the Accha camp. Finally, the core boxes were transferred to
80554 April 14, 2008
12.1
wooden core storage sheds built by Zincore on site. All core is currently stored on site at the main Accha
camp. Core boxes are readily available and stored on steel and wooden support racks.
Zincore carried out a program of sampling to determine a bulk density factor. Samples were collected
from various drill holes on site and measured by the Project Geologist on site. The procedure utilized
paraffin wax coating of the drill core samples.
80554 April 14, 2008
12.2
13.0
SAMPLE PREPARATION AND QA-QC
13.1
RTZ
At this time, there is no information available regarding the quality control procedures that were used by
RTZ.
13.2
Zincore
During the recent drilling program conducted by Zincore, sampling was conducted in a manner to allow
reasonable averaging and statistical manipulation of the data. Standards and blanks were used to
maintain quality control and to verify laboratory procedures. The zinc oxide standards were made using
ore material from historical trenches at the Accha Property. Three samples were collected representing
low grade, medium grade and high grade values for the deposit. The samples were then sent to ACME
Labs for preparation and assaying in a round robin analysis.
Samples were collected using a standard one meter sample length in the main mineralized zone and a
two meter length in the surrounding rocks or in other minor intervals of alteration and/or mineralization.
Shorter sample lengths were avoided whenever possible. Where required to complete a sampling run to
the end of a mineralized interval, a sample length of greater than 1 meter but less than 2 meters was
applied. The laboratory analyzed the samples in batches of forty. Each batch included at least five
samples that were internal duplicates or standards and thirty five submitted samples. In order to ensure
that at least one blank and a standard were included in each analytical batch, one blank and one
standard were inserted every twenty samples. A blank was inserted every tenth sample and a standard
every twentieth sample. The samples were placed in rice bags and sealed with numbered security tags on
site and then shipped via a privately contracted trucking company directly to the main laboratory facility
of ALS in Lima.
In order to ensure control on the shipping, the laboratory was required to review the state of the security
tags on reception by signing a shipping manifest. The laboratory was instructed to report any evidence of
tampering with the rice bags or security tags. There was no incident of tampering reported by the
laboratory during the drilling campaign.
All samples for the resource drill program were crushed to 70 percent passing 2 millimeters and then
quartered and pulverized to 85 percent passing 75 microns. The samples were digested using a three
acid digestion and analyzed by two packages. Lead and zinc were determined by Atomic Absorption
(AA62) and if the results exceeded 30 percent, they were re-assayed by volumetric methods (VOL70). All
samples were also assayed by ICP for 25 elements (also using the three acid digestion for complete
dissolution (ME_ICP61a)). This provided reliable total analyses for Calcium, Iron, Magnesium, Manganese,
as well as Silver, Aluminum, Arsenic, Beryllium, Bismuth, Cadmium, Cobalt, Chromium, Copper,
Potassium, Molybdenum, Sodium, Nickel, Pb, Antimony, Strontium, Titanium, Vanadium and Zn. All pulps
and coarse rejects were recovered and stored.
80554 April 14, 2008
13.1
The ALS Chemex Lima laboratory that received samples is registered to ISO 9001:2000 for the “provision
of assay and geochemical analytical services” by QMI Management Systems Registration. On the basis of
the Zincore data processing, PAH concludes that the assay data are of sufficient quality to be used for
resource estimation purposes.
80554 April 14, 2008
13.2
14.0
DATA VERIFICATION
14.1
RTZ
Original assay certificates were not available to the Author for review. However, lead and zinc grades for
12 of the RTZ drill holes were reported in an NI 43-101 Technical Report authored by L.D.S. Winter in
2006. This report was posted to SEDAR by Zincore in 2007. PAH cross checked these reported grade
values against those in the drill hole database used for this resource estimate and found them to be
consistent.
14.2
Zincore
14.2.1
Survey Data
Three types of survey data were incorporated when generating the resource estimate for the Property:
Topography, collar locations, and down-hole surveys. PAH has reviewed the methods used to derive
these data. Additionally, the topography and collar locations were field checked during the site visit by
PAH. PAH believes these are reliable methods and are consistent with industry standard practice.
14.2.2
Sampling Procedures
Core drilled by Zincroe were sampled for both assay and density measurements. During the site visit,
PAH toured the Project sampling facilities. During this tour, a Project geologist provided a verbal
description of the procedures for sampling and processing core for assaying. The facilities and
procedures are consistent with the description provided in Section 12.
PAH believes Zincore’s sampling procedures for assays are consistent with industry standard practice.
PAH’s review of the data derived from Zincore’s QA/QC program for these samples (standards, blanks
and duplicates) do not indicate bias or systematic error in the assay results.
14.2.3
Database Validation
To validate that data has been properly transcribed to the master drill hole database used for mineral
resource estimation, PAH conducted two exercises.
First, a sample of core holes drilled by Zincore were relogged. During this logging exercise, PAH
observed the lithology, lead mineralization and intensity of oxidation. These observations were compared
to the drill hole database. This comparison indicates: 1) the observed lithology is consistent with the
database, 2) high lead grades in the database are positively correlated to lead mineralization observed in
the core and 3) the intensity of oxidation observed is positively correlated with the zinc values listed in
the database (high oxidation equals high zinc and vice versa).
80554 April 14, 2008
14.1
Second, PAH obtained copies of the original assay certificates from ALS . The zinc and lead values in
these certificates were compared with those stated in the drill hole database for the corresponding
sample interval. PAH found the database is constant with the assay certificates.
As a result of these two exercises, PAH believes data has been properly transcribed to the drill hole
database.
14.2.4
Geologic Interpretation
Zincore geologists have confirmed the general shallow dip to the East of the stratigraphy. As indicated in
other sections of this report, structure played an important role in the emplacement of mineralization
however, and most mineralization is associated with breccias that appear to be located at or near the
intersection of cross-cutting structures. On a property scale, displacements are generally relatively small
and mineralized zones have good correlation between drill holes along sections.
The altered diorite located immediately east of the main mineralized zone on the property is thought to
have played a significant role in the emplacement of mineralization. Evidence suggests that there was
more than one episode of zinc-lead mineralization on the property but more mineralogical studies are
necessary to further document this idea.
80554 April 14, 2008
14.2
15.0
ADJACENT PROPERTIES
Zincore controls 45,000 hectares of ground to the northeast and east of the Yanque Property covering
the favorable limestone stratigraphy wrapping around the Apirumac batholith. In addition to its
exploration of the Property, Zincore is actively exploring the Accha zinc oxide deposit 30 kilometers
northeast of the Property and has commenced early stage exploration on other Zincore owned claims
within the belt. Zincore's objective is to identify and define multiple deposits within the Accha-Yanque
zinc belt that could be mined to feed a centralized processing facility. As this report deal specifically with
the Yanque Property, an overview of other deposit and targets along the belt is presented in this adjacent
properties section.
15.1
Accha Area
The Accha Area is approximately 30 kilometers northeast of the Yanque mineral deposit. This is a zinc
oxide/carbonate deposit hosted in Ferrobamba limestone. Accha is the subject of the NI 43-101
Technical Report titled “Technical Report for the Accha Property, Peru.” This report was issued to Zincore
on January 18, 2008 by Aaron McMahon of PAH. In this report Accha resources are stated as in Table
15-1.
15.2
Yanque East
The Yanque East target is located 5 kilometers east of the property and is an area of sporadic oxidized
gossanous outcrop currently defined over approximately 400 meters by 200 meters. Select sampling from
oxidized zones of outcrop in the north and central parts of the target returned anomalous values of both
zinc and lead. In the southern portion of the target an old adit was discovered on steeply dipping altered
limestones that strike in a north-south direction close to an intrusive contact.
The alteration of the limestone consists of both hydrothermal and crackle breccias as well as limonite
alteration that is similar to the alteration pattern of the Accha and Yanque deposits. The manto style
mineralization was sampled perpendicular to strike across the adit entrance and via trenching beyond the
adit. The continuous 16-meter channel sample graded 9.7 percent zinc, 8.4 percent lead and 41 grams
per tonne silver. A grab sample from the end of the 50-meter long adit returned 11.7 percent zinc and
1.3 percent lead and mineralization was visually identified along the length of the adit. A second sample
from surface in the same area returned 0.46 percent zinc and 13.75 percent lead. The mineralized zone
has been traced a total of 80 meters along strike to the north, where it has been displaced by a fault. Soil
and vegetation cover the zone to the south.
The limestone package strikes almost North-South and dips steeply to the east towards a large intrusive.
The altered and gossanous limestone unit has been traced over approximately 400m to date through
trenching and detailed mapping. No evidence of previous drilling has been found from this zone.
80554 April 14, 2008
15.1
TABLE 15-1
Zincore Metals Inc.
Yanque Property
Accha Insitu Resource Estimate
Percent Zinc Cut-off
Grade
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Tonnes
(ktonnes)
24,826
10,506
8,352
5,847
5,068
4,804
4,514
4,092
3,635
3,119
2,575
Percent Zinc Cut-off
Grade
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Tonnes
(ktonnes)
10,773
3,077
2,579
1,562
1,429
1,424
1,265
1,101
979
811
561
15.3
Indicated Resources
Average Grade
Average Grade
(Percent Zinc)
(Percent Lead)
2.02
0.29
4.51
0.59
5.47
0.68
7.29
0.82
8.15
0.87
8.48
0.89
8.85
0.92
9.42
0.96
10.14
1.02
11.11
1.08
12.45
1.13
Inferred Resources
Average Grade
Average Grade
(Percent Zinc)
(Percent Lead)
1.08
0.18
3.33
0.48
3.81
0.52
5.55
0.63
5.92
0.66
5.93
0.66
6.33
0.71
6.79
0.74
7.16
0.73
7.76
0.76
9.09
0.84
Puyani Area
Cerro Puyani, in the Puyani Area, is located approximately 7.5 kilometers east-northeast of the Yanque
mineralization (25.5 kilometers southwest of the Titiminas Area). Here, various zinc oxide occurrences
have been identified in the Ferrobamba Formation.
In 1998, Savage drilled two holes in the area of the Puyani prospect for a total of 500m. One hole (SPY01 was drilled about 300 meters distant from the mineralization, was barren. The second hole (SPY-02)
was drilled about 500 m northeast of the mineralization and it cut a 10m section of 1.25 percent Zn at
the base of the Ferrobamba formation. It is considered that Savage probably drilled the hole based on
an incorrect model or incorrect understanding of the trend of the mineralization. Savage channel sampled
along an old adit at Puyani, and the samples returned 60m at 16 percent Zn and 20 percent Pb.
80554 April 14, 2008
15.2
The prevailing ore control at Puyani is tectonic structure. Faults crossing perpendicular to stratigraphy
have guided the hydrothermal fluids and the outcropping, high-grade mineralization appears to be
confined to these structures. The high-grade mineralization sampled by Savage may be along one of
these structures.
15.4
Azulcancha and Capayocc Areas
The Azulcancha Prospect is located 18 kilometers northeast of the Yanque area (Figure 15-1) and the
system covers an area 90 by 50 m of grey re-crystallized limestone that hosts structurally controlled
veinlets and pods of strong iron oxide with locally abundant hemimorphite and distinct zones of lead rich
plumbojarosite bearing iron oxide. The mineralization is located close to the contact with the main
Apurimac batholith. The contact is marked by extensive magentite skarn with local concentrations of
malachite.
The Capayocc Area is located 14 kilometers northeast of the Property and about 6.5 kilometers west of
the Azulcancha Prospect. There are a number of mineralized zones containing zinc oxides hosted in
Ferrobamba limestone. Several old workings are present at Capayocc and it appears that these were
excavated for their silver content. Zinc oxide-rich material is exposed in several places and. surface
outcrops trenching and drilling have defined a mineralized system at Capayocc that extends over an area
of 350 by 100 m. The core of the mineralized area consists of an altered and gossanous area roughly
70m by 180 m. The zone consists of yellow highly altered and limonitic limestone, dark hematite rich
oxide resulting from the weathering of quartz magentite skarn and yellow siliceous Fe oxide resulting
from the weathering of copper bearing skarn. These rocks host several quartz sulfide vein zones that are
expressed as both quartz veins with significant galena, traces of sphalerite and locally strong barite and
as quartz boxwork zones with no remnant sulfide.
The Azulcancha and Capayocc Areas were trenched in the 2004 program and returned significant assays
up to 15 percent zinc across 10.0 meters. Both areas were tested in late 2005 by a drill program
consisting of 12 short drill holes for a total of 1,128 meters. At Capayocc, 10 holes were completed for a
total of 650 meters. The objective of the program was to trace out both down-dip and along strike the
zinc oxide – type mineralization observed in the surface trenches. Three holes CAP-A1, CAP-A7 and CAPA8 confirmed that the mineralization continued in depth and is open to the north, east and west. The
other holes intercepted concentration of iron oxides (hematite and goethite) carrying anomalous values in
copper. The results from holes CAP-A1, CAP-A7 and CAP-A8 are presented in Table 15-2.
The reported results are all core lengths and at this point the true attitude/dimensions of the mineralized
zones are unknown; therefore, the true width of the mineralization is unknown.
The drilling was carried out by Bradley MDH SAC using a Gopher drill and NTW core. Supervision,
logging and sampling were conducted by MISOSA personnel.
80554 April 14, 2008
15.3
TABLE 15-2
Zincore Metals Inc.
Accha Property
Accha – Yanque Zinc Belt Project – Capayocc Drilling Results
Intersection (m)
Hole
From
Length
Zn (%)
Comments
CAP-A1
0.00
2.11
35.38
mineralization fault controlled
14.18
1.34
6.72
CAP-A7
0.72
3.82
12.62
3m lost core – width of
mineralization would be 6.82m
CAP-A8
24.06
2.54
5.48
mineralization fault controlled
No significant mineralization was encountered in the Azulcancha drilling. The holes may have been
drilled in the wrong direction due to some ambiguity in the actual dip of the units in the area.
15.5
Yurac Area
In 2003 MISOSA personnel sampled the Yurac Areas, 9 kilometers northeast of the Property.
Ferrobamba limestone units have been intruded by small quartz-feldspar and feldspar-hornblende
porphyry dykes/stocks and zinc oxide mineralization of potential economic interest occurs as replacement
type mineralization and in fault-hosted zones.
80554 April 14, 2008
15.5
16.0
MINERAL PROCESSING AND METALLURGICAL TESTING
No metallurgical test work has been completed for the Property to date.
80554 April 14, 2008
16.1
17.0
RESOURCE ESTIMATE
17.1
Topography
The Yanque area was flown in 2006 (April –June) by Horizons South America S.A.C. The resulting
topographic map was drawn at a contour interval of 5 meters and a scale of 1:5,000. The photo scale
was 1:20,000.
This topographic map was supplied as a digital file. This file was imported into Gems mine planning
software and a three-dimensional wireframe (surface) was generated. This surface was later used during
the block modeling process.
17.2
Drill Hole Database
This resource estimate is based on the drill hole database provided to PAH by Zincore. These data come
from core holes and surface trenches (“Drill Holes”). Summary statistics for this database are provided in
Table 17-1. The information contained in this database that influenced the resource estimate include
collar locations, down-hole surveys, specific gravity measurements, zinc assays and lead assays.
TABLE 17-1
Zincore Metals Inc.
Yanque Property
Drill Hole Data - Basic Statistics
Number of Core Holes
Number of Trenches
Meters of Core
Meters of Trench
Average Hole/Trench Length
Minimum Depth
Maximum Depth
Meters of Total Drilling/Trenching
Average Sample Interval Length
Number of Sampled Intervals
Total Sampled meterage
Average Grade*
Minimum Grade
Maximum Grade
37
6
4,318
245
106
18
220
4,562
1.44 meters
2,270
3,266
1.4 %Zn, 1.1 %Pb
<0.1 %Zn, <0.1 %PB
42.1 %Zn, 41.3 %Pb
*weighted by sample length
Examination of the zinc and lead assay data show that, like most metal deposits, the sample distribution
is positively skewed. In an effort to identify some structure in these distributions, PAH found it necessary
to examine these data using a natural log scale. At the natural log scale, zinc shows a broad spread and
the positive skew remains. Lead shows a broad spread as well, but little to no positive skew. PAH was
unable to identify multiple populations for either distribution. (See Figures 17-1 and 17-2).
80554 April 14, 2008
17.1
17.3
Mineralization Model
To limit the interpolation of zinc and lead grades in the Yanque deposit, PAH used a mineralized
envelope. This envelope was created by Zincore using Vulcan mine planning software. The envelope
was created by interpretation of a long and cross section map set of the Yanque target area. The cross
section azimuth was 50 degrees. Both long and cross section intervals were 100m.
The longitudinal sections were evaluated first. Sections were plotted with drill hole assay data displaying
side-by-side zinc and lead histograms to show the broad continuity of a mineralized zone over the project
area. For each section, a single polygon outline was drawn by hand on the section and digitized.
A cross section set was then plotted, also showing zinc and lead histograms, and also the intersections of
zone polygons digitized from the longitudinal section set. Once again, on paper, polygon outlines of the
continuous mineralized zone were traced on each section using the added information interpreted from
the long section set. These polygons were also then digitized.
No specific zinc or lead grade was used to trace polygons. The attempt was only made to outline a
moderately well defined continuous mineralized zone based on the drill holes and assays completed.
Once all the cross section polygons were completed, they were merged into three-dimensional closed
triangulation and truncated to the topographic surface where necessary. This final solid was then
exported in drawing exchange format (DXF) and then imported into Gems mine planning software by
PAH. Figure 17-3 is an example of the mineralized envelope in section.
17.4
Compositing
Prior to grade modeling, the zinc and lead assay data were composited. This was done to normalize the
sample lengths and to isolate different sample populations. The compositing logic is as follows:
1.
Composite length is 3 meters.
2.
Composite lengths are measured down-the-hole.
3.
Compositing begins at the hole collar.
4.
Composite transcend the grade envelope.
5.
There is no exclusion or special treatment of truncated composites.
6.
Composite grades are calculated as the weighted average by volume of samples within the
composite interval.
7.
For drill hole intervals without assay data, grades were assumed to be zero percent zinc and/or zero
percent lead.
80554 April 14, 2008
17.4
17.5
Block Model
A three dimensional block model was created in Gems mining software. The geometry of this block
model is detailed in Table 17-2. The block dimensions were chosen to approximate a single selective
mining unit for the open pit mining operation envisioned at the time of the writing of this report.
TABLE 17-2
Zincore Metals Inc.
Yanque Property
Block Model Geometry
Origin (southwest-top corner)
Block Size (meters)
Number of Columns
Number of Rows
Number of Levels
Number of Blocks
17.6
X
814,800
5
200
200
70
2,800,000
Y
8,429,800
5
Z
3,600
3
Grade Modeling
The block model was populated with zinc and lead values calculated from the composited drill hole data.
The mineralized envelope was used as a hard boundary. Only blocks at least 50 percent inside the
mineralized envelope received interpolated zinc and lead grades. These grades were calculated from only
the composites inside the envelope. Interpolated grades were determined using the nearest neighbor
method. The nearest neighbor method sets a block grade equal to the closest composite grade to that
block.
Figure 17-4 and Figure 17-5 are sectional views of the zinc and lead grade models, respectively.
17.7
Specific Gravity Model
Specific gravity (SG) was modeled as a function of lead grade. Analysis of the available SG data indicates
samples with less than one percent lead have a slight negative correlation between lead and SG. The
average SG for these samples is 2.40 (this average excludes 6 samples from the quartzite unit). Samples
with lead values greater than one percent display a strong positive linear relationship (correlation
coefficient of 0.74) between lead and SG. Based on this analysis, PAH elected to assign SG as a function
of lead grade. The logic for assigning SG is as follows:

For blocks with an interpolated lead grade of 1% or less, the SG value is 2.40

For blocks with an interpolated lead grade greater than one percent, the SG value equals the lead
grade times 0.048 plus 2.24
80554 April 14, 2008
17.6
17.8
Mineral Resource Classification
All resources reported for the Yanque deposit are inferred mineral resources.
17.9
The estimated mineral resources for the Property are detailed in Table 17-3. Cut-off grades listed are
based on a straight summation of percent zinc and percent lead. At a cut-off of 4.5 percent zinc plus
lead, the Yanque inferred resource is 10.3 million tonnes with an average zinc grade of 5.28 percent and
an average lead grade of 5.34 percent.
TABLE 17-3
Zincore Metals Inc.
Yanque Property
Percent Zn + Pb
Tonnes
(ktonnes)
Cut-off Grade
7.0
6,356
6.5
7,083
6.0
7,520
5.5
8,498
5.0
9,621
4.5
10,258
4.0
11,113
3.5
12,361
3.0
13,720
2.5
15,442
2.0
17,714
1.5
20,721
1.0
25,546
0.5
33,426
0.0
59,538
80554 April 14, 2008
Average Grade
Average Grade
(Percent Zn)
(Percent Pb)
6.70
6.45
6.22
5.85
5.44
5.28
5.05
4.74
4.41
4.09
3.75
3.33
2.84
2.27
1.32
6.94
6.49
6.33
5.92
5.58
5.34
5.08
4.74
4.46
4.09
3.68
3.27
2.74
2.17
1.25
17.9
18.0
OTHER RELEVANT DATA AND INFORMATION
18.1
Community Relations
Zincore is committed to building relationships with the communities and stakeholders neighboring and
affected by its exploration projects that allow for mutual understanding, respect and participation in the
economic and development benefits the can be generated through its business activities.
The community of Yanque, that holds the surface rights relating to the Property, is comprised on four
villages; Yanque, Laca Laca, Parcobamba and Gran Chico. After a process of community discussions and
engagement, Zincore reached agreement with the community which permits Zincore to conduct its
exploration and drilling activities on the Property. Under this agreement Zincore has committed to hire
community members to assist with its activities, and invest in the health and educational needs on the
communities. Should the Property progress past the exploration stage, a revised agreement to permit
development and mining activities would be required.
80554 April 14, 2008
18.1
19.0
INTERPRETATIONS AND CONCLUSIONS
19.1
Adequacy of Procedures
PAH has reviewed the methods and procedures used by Zincore to gather geological and assaying
information and found them reasonable and meeting generally accepted industry standards.
19.2
Adequacy of Data
PAH believes that the data Zincore provided regarding exploration, sampling and sampling analysis
programs used standard practices and provided generally reasonable results. PAH believes that the
resulting data can be effectively used in the subsequent estimation of resources.
19.3
Adequacy of Technical Report
This Technical Report has been prepared by PAH using standard industry practices and the results and
conclusions that follow are considered reasonable.
19.4
Compliance with Canadian NI 43-101 Standards
PAH believes that the current drill hole database is of sufficient quality for generating resource model for
use in resource estimation.
PAH believes that the resource estimate has been calculated using accepted estimating methods. PAH is
also of the opinion that the classification of inferred resources, stated in Table 17-3 meets the definitions
as stated by NI 43-101 and defined by CIM Standards on Mineral Resources and Reserves Definitions and
Guidelines adopted by the CIM Council on December 21, 2005.
19.5
Conclusions
PAH conclusions are as follows:
Geology and Mineralization: Yanque is a zinc oxide/carbonate and lead carbonate/sulfide deposit hosted
within Ferrobamba limestone. The zone of mineralization is tabular and occurs near surface in an area of
moderate relief.
Exploration: A total of 4,562 meters of drilling and trenching has been completed on the property. Sixty
percent of this was conducted under Zincore’s QA/QC program. PAH has reviewed this program and is of
the opinion that it is consistent acceptable industry practice. The balance of the drilling was conducted
by RTZ, but no information on their QA/QC program was available. As a result of this drilling, a zone of
zinc and lead mineralization was identified. This mineralization remains open in the immediate deposit
area to the Northeast, East and Southeast. There is additional exploration potential outside of the
80554 April 14, 2008
19.1
immediate deposit area to the Southeast identified by chip samples, soil samples, old mine workings and
outcrop.
Resources: The geologic resources identified by PAH are classified as inferred. Further drilling and
geologic work will be necessary to elevate the classification of these resources. An infill drilling campaign
should be designed to better define the distribution of zinc and lead grade. The discrete fault blocks
identified by Zincore should be incorporated into the resource estimate. Additional drilling is required
around the periphery of the deposit to verify the extents of mineralization.
80554 April 14, 2008
19.2
20.0
RECOMMENDATIONS
PAH recommends the following for advancement of the Yanque project:

Conduct metallurgical test work to determine zinc and lead recovery.

Conduct a drilling campaign to define the limits of mineralization on the property and update the
resource estimate by incorporating these drilling results.

Conduct a Preliminary Assessment. All resources reported here for the Property are classified as
inferred. National Instrument 43-101 permits the disclosure of a Preliminary Assessment that
includes an economic evaluation of inferred resources. This can be done before or after the
aforementioned drilling campaign.
80554 April 14, 2008
20.1
21.0
REFERENCES
1.
Carman, G.D., 1996, Memoranda, maps, CD’s re exploration program results, RTZ Mining and
Exploration Limited, Sucursai del Peru, Yanque Zinc Project.
2.
McMahon, A.M., 2007, Technical Report for the Accha Property, Peru, Prepared for Zincore Metals,
Inc.
3.
Pride, K., 2007, Mapping Report, Yanque Project for Zincore Metals Inc and Exploraci SAC.
4.
Winter, L.D.S., 2006, National Instrument 43-101 Technical Report, Zincore Metals Inc., AcchaYanque Zinc Belt Project, Department of Cusco, Peru.
80554 April 14, 2008
21.1
22.0
ILLUSTRATIONS
The illustrations supporting the various sections of the report are located within the relevant sections
immediately following the references to the illustrations, for ease of reference. An index of tables and
illustrations is provided at the beginning of the report.
80554 April 14, 2008
22.1
23.0
ADDITIONAL REQUIREMENTS FOR DEVELOPING OR PRODUCING
PROPERTIES
The Property is not yet at a development level, and no production is occurring. Therefore, there is no
information to be presented for this section of the report.
80554 April 14, 2008
23.1
24.0
CERTIFICATE OF QUALIFICATION
Aaron M. McMahon
165 South Union Boulevard, Suite 950
Lakewood, Colorado 80228-2226
Telephone: 303-9686-6950
Fax: 303-987-8907
Email: [email protected]
I, Aaron McMahon, P.G. do hereby certify that:
1.
I am a Senior Geologist of: Pincock, Allen & Holt
2.
I graduated with a degree in Geology from James Madison University in 1998. In
addition, I have obtained a Master of Science degree in Geology from Arizona State
University in 2001.
3.
I am a Professional Geologist registered with the State of California.
4.
I have worked as a geologist for a total of seven years since my graduation from
university.
5.
I have read the definition of "qualified person" set out in National Instrument 43-101
("NI 43-101") and certify that by reason of my education, affiliation with a professional
association (as defined in NI 43-101) and past relevant work experience, I fulfill the
requirements to be a "qualified person" for the purposes of NI 43-101.
6.
I am responsible for the preparation of all sections of the technical report titled
“Technical Report for the Yanque Deposit, Peru and dated April 14, 2008 (the "Technical
Report") relating to the Yanque zinc-lead oxide deposit. I visited the Yanque zinc-lead
oxide deposit in October/November 2007 and February 2008 for eight days.
7.
I have not had prior involvement with the property that is the subject of the Technical
Report.
8.
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.
9.
I am independent of the issuer applying all of the tests in section 1.4 of National
Instrument 43-101.
10.
I have read National Instrument 43-101 and Form 43-101F1, and the Technical Report
has been prepared in compliance with that instrument and form.
80554 April 14, 2008
24.1
11.
I consent to the filing of the Technical Report with any stock exchange and other
regulatory authority and any publication by them for regulatory purposes, including
electronic publication in the public company files on their websites accessible by the
public, of the Technical Report.
Dated this 14th day of April 2008.
“Aaron M. McMahon”
________________________________
Aaron M. McMahon, P.G.
80554 April 14, 2008
24.2