ni 43-101 technical report

Transcription

NI 43-101 TECHNICAL REPORT
For the
Córdoba Project,
Department of Córdoba,
Republic of Colombia
For
Wesgold Minerals Inc., 355 Burrard Street, Suite 830, Vancouver,
British Columbia, Canada, V6C 2G8
By
STEWART D. REDWOOD, PhD, FIMMM
Effective date
26 July 2011
Wesgold Minerals Inc.
Córdoba Project Technical Report
S. Redwood
26 July 2011
TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................................ 2
List of Tables .............................................................................................................................. 3
List of Figures ............................................................................................................................. 3
1
SUMMARY ............................................................................................................................ 5
1.1
Introduction ..................................................................................................................... 5
1.2
Property Description and Location ................................................................................. 5
1.3
History............................................................................................................................. 5
1.4
Geology and Mineralization ........................................................................................... 5
1.5
Exploration, Drilling and Sampling ................................................................................ 6
1.6
Mineral Processing and Metallurgical Testing ............................................................... 6
1.7
Mineral Resource Estimates ........................................................................................... 6
1.8
Interpretation and Conclusions ....................................................................................... 6
1.9
Recommendations ........................................................................................................... 7
2
INTRODUCTION AND TERMS OF REFERENCE ............................................................ 9
2.1
Purpose of Report ........................................................................................................... 9
2.2
Terms of Reference ......................................................................................................... 9
2.3
Sources of Information ................................................................................................... 9
2.4
Property Inspection ......................................................................................................... 9
2.5
Abbreviations ................................................................................................................ 10
3
RELIANCE ON OTHER EXPERTS ................................................................................... 12
4
PROPERTY DESCRIPTION AND LOCATION ................................................................ 13
4.1
Property Location.......................................................................................................... 13
4.2
Property Description ..................................................................................................... 14
4.2.1 Legal Framework ...................................................................................................... 14
4.2.2 The Wesgold-Minatura Agreement .......................................................................... 17
4.2.3 Córdoba Project Mining Rights ................................................................................ 18
4.3
Environmental Regulations and Liabilities................................................................... 22
4.4
Surface Rights ............................................................................................................... 23
4.5
Water Rights ................................................................................................................. 23
5
ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRA-STRUCTURE AND
PHYSIOGRAPHY........................................................................................................................ 24
5.1
Accessibility .................................................................................................................. 24
5.2
Climate .......................................................................................................................... 26
5.3
Local Resources and Infrastructure .............................................................................. 26
5.4
Physiography................................................................................................................. 27
6
HISTORY ............................................................................................................................. 28
6.1
Colombian Gold Mining History .................................................................................. 28
6.2
Córdoba History ............................................................................................................ 28
7
GEOLOGICAL SETTING AND MINERALIZATION ...................................................... 30
7.1
Regional Geology ......................................................................................................... 30
7.2
Project Geology ............................................................................................................ 32
7.3
Mineralization ............................................................................................................... 34
7.4
Metallogenesis .............................................................................................................. 37
8
DEPOSIT TYPES ................................................................................................................. 38
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26 July 2011
9
EXPLORATION................................................................................................................... 40
10
DRILLING ........................................................................................................................ 43
11
SAMPLE PREPARATION, ANALYSIS AND SECURITY .......................................... 44
12
DATA VERIFICATION .................................................................................................. 45
13
MINERAL PROCESSING AND METALLURGICAL TESTING ................................ 47
14
MINERAL RESOURCE ESTIMATES ........................................................................... 47
15
MINERAL RESERVE ESTIMATES............................................................................... 47
16
MINING METHODS ....................................................................................................... 47
17
RECOVERY METHODS ................................................................................................. 47
18
PROJECT INFRASTRUCTURE ..................................................................................... 47
19
MARKET STUDIES AND CONTRACTS ...................................................................... 47
20
ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY
IMPACT ....................................................................................................................................... 48
21
CAPITAL AND OPERATING COSTS ........................................................................... 48
22
ECONOMIC ANALYSIS ................................................................................................ 48
23
ADJACENT PROPERTIES ............................................................................................. 49
24
OTHER RELEVANT DATA AND INFORMATION .................................................... 49
25
INTERPRETATION AND CONCLUSIONS .................................................................. 50
26
RECOMMENDATIONS .................................................................................................. 51
27
REFERENCES ................................................................................................................. 53
28
CERTIFICATE OF AUTHOR ......................................................................................... 55
ANNEX 1: CERTIFICATE OF ANALYSIS OF CHECK SAMPLES ....................................... 56
List of Tables
Table 1.1 Estimated budget to carry out Stage 1 exploration program at Córdoba Project. ......... 7
Table 1.2 Estimated budget to carry out Stage 2 exploration program at Córdoba Project. ......... 7
Table 2.1 List of abbreviations .................................................................................................... 11
Table 4.1 Description of Córdoba Project mining rights. ............................................................ 20
Table 5.1 Road access to the Córdoba Project. ............................................................................ 24
Table 9.1 Geochemical analyses for selected elements for reconnaissance rock chip samples
from Córdoba Project taken by Cordoba Minerals, February and May 2011. ..................... 41
Table 12.1 Sample description and results of check sampling at Córdoba Project. .................... 46
Table 26.1 Estimated budget to carry out Stage 1 exploration program at Córdoba Project. ..... 51
Table 26.2 Estimated budget to carry out Stage 2 exploration program at Córdoba Project. ..... 51
List of Figures
Figure 4.1 Location map of Córdoba Project, Department of Córdoba, Colombia ...................... 13
Figure 4.2 Corporate organizational chart of ownership of Minerales Cordoba S.A.S. .............. 18
Figure 4.3. Map of the Córdoba Project mining properties. ......................................................... 21
Figure 5.1 Plan of road access to the Córdoba Project. ................................................................ 25
Figure 5.2 General view of the Córdoba Project. ........................................................................ 27
Figure 7.1 The tectonic setting of the Córdoba Project. .............................................................. 31
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26 July 2011
Figure 7.2 Geological Map of the Córdoba Project with location of artisanal mines. ................. 33
Figure 7.3 Open pit artisanal mine workings at La Montiel Mine............................................... 35
Figure 7.4 Quartz veinlet stockwork at La Montiel. .................................................................... 35
Figure 7.5 Copper oxides in artisanal gold mine at Teherán. ...................................................... 36
Figure 7.6 Quartz veinlets with goethite and copper oxides in supergene argillic altered
porphyry dacite with magnetite after hypogene potassic alteration at the Teherán mine. .... 36
Figure 9.1 Location of reconnaissance rock chip samples taken by Cordoba Minerals from the
Córdoba Project. ................................................................................................................... 42
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26 July 2011
1 SUMMARY
1.1 Introduction
This report was prepared by Dr. Stewart D. Redwood at the request of Wesgold Minerals Inc.
(Wesgold Minerals), a Canadian company. The terms of reference were to produce a Technical
Report as defined in Canadian Securities Administrators’ National Instrument 43-101, and in
compliance with Form 43-101F1 (Technical Report) and Companion Policy 43-101CP for the
Córdoba Project in Colombia. The effective date of the report is 26 July 2011.
1.2 Property Description and Location
The Córdoba Project is located in the Municipality of Puerto Libertador, Department of Córdoba,
Republic of Colombia. The mining rights cover 25,797 hectares or about 258 km2 in ten
properties which comprise one concession contract and nine applications with the free areas
declared. The latitude and longitude are 7° 45’ north, 75° 43’ west, and the altitude is between
100 m and 170 m above sea level. Wesgold has an option to acquire an interest in the Córdoba
Project from Minatura International LLC.
1.3 History
Artisanal mining for gold is carried out at several places within and adjacent to the Córdoba
Project. The only modern exploration was carried out by Dual Resources Inc. in 1984-86, and by
Sociedad Minera El Álacran S.O.M in 1995-98. A historical mineral resource was determined
from this work at the El Álacran mine of 13.5 Mt grading 0.85 g/t Au and 0.3% Cu. El Álacran is
surrounded by, but is not part of the Córdoba Project.
1.4 Geology and Mineralization
The project is underlain by Late Cretaceous ocean floor basalts and sediments of the San Jacinto
terrane, one of the accreted oceanic terranes that form the Western Cordillera of Colombia.
These are overlain by Neogene sedimentary rocks in the northern part of the project, and by
alluvial deposits. The Late Cretaceous rocks are intruded by diorite, quartz monzonite or quartz
diorite porphyries which may be of Upper Miocene age.
Porphyry style gold and copper mineralization at the Montiel and Teherán mines is hosted by
diorite porphyry and basalt with a well developed quartz vein stockwork. The two deposits are
probably connected and form a single porphyry system at least 900 m long. The grades in check
chip and grab samples taken by the author here are from 0.21 to 4.01 g/t Au, 0.44 to 22 g/t Ag,
and 0.33 to 3.06% Cu.
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26 July 2011
1.5 Exploration, Drilling and Sampling
The project is at an early stage of exploration. Minatura have carried out reconnaissance
geochemical exploration at the Córdoba Project. No geological mapping, topographic surveys,
other geochemistry, trenching or drilling has been carried out. Wesgold have carried out no
exploration yet.
1.6 Mineral Processing and Metallurgical Testing
No mineral processing and metallurgical testing has been carried out due to the early exploration
stage of the project.
1.7 Mineral Resource Estimates
There are no mineral resource estimates for the property that are compliant with the current CIM
standards and definitions required by the Canadian NI 43-101 “Standards for Disclosure of
Mining Projects”.
1.8 Interpretation and Conclusions
The Córdoba Project is an early stage, district scale exploration project for porphyry Cu-Au-Mo,
epithermal Au, and possibly iron oxide copper-gold deposits. Preliminary observations and
sampling of artisanal mine workings at Montiel and Teherán show porphyry style mineralization
with significant grades of Au and Cu associated with a well developed stockwork of quartz
veinlets. The identification of porphyry style mineralization is highly encouraging and it is
interpreted that Córdoba lies on the northern continuation of the highly prospective Middle
Cauca gold belt, host to the La Colosa porphyry deposit (12.4 million ounces (Moz) gold), the
Marmato epithermal deposit (9.8 oz gold), and the Cerro Vetas porphyry deposit (3.7 Moz gold
and 0.46 million tonnes (Mt) copper).
The Córdoba Project is at too early a stage of exploration to make predictions about the possible
tonnes and grade of the deposit(s).
The author concludes that the Córdoba Project has potential for the discovery of one or more
bulk mineable gold and copper deposits, and that further exploration is warranted to test the
economic potential.
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1.9 Recommendations
A two stage exploration program is recommended for the Córdoba Project. Stage 1 comprises:
a) district scale exploration by an airborne magnetic and radiometric survey, obtaining and
interpreting a high resolution satellite image and DTM, and stream sediment sampling and
reconnaissance sampling and prospecting, and b) systematic channel sampling and geological
mapping of the Montiel-Teherán prospect. The estimated costs for the Stage 1 program are
US$900,000 and the estimated time to carry out the program is six months. The estimated costs
are given in Table 1.1.
Item
Aeromagnetic and radiometric survey
High resolution satellite image and DTM
District scale stream sediment sampling
District scale reconnaissance sampling and prospecting
Channel sampling and mapping Montiel-Teherán
General & administration
Total
US$
250,000
100,000
100,000
50,000
200,000
200,000
900,000
Table 1.1 Estimated budget to carry out Stage 1 exploration program at Córdoba Project.
The Stage 2 program comprises a) an initial phase of diamond drilling on the Montiel-Teherán
target, comprising 20 holes of 300 m each for a total of 6,000 m, with the hole locations to be
defined by the Stage 1 program; b) systematic mapping and sampling of other targets defined by
the Stage 1 district scale exploration program; and c) an initial phase of diamond drilling on
other targets as defined by the Stage 1 district scale exploration program, consisting of 20 holes
of 200 m each for a total of 4,000 m. The Stage 2 program is conditional upon positive results
from the Stage 1 program. The estimated costs for the Stage 2 exploration program are
US$3,500,000 and are listed in Table 1.2. The estimated time to carry out the program is six
months.
Item
Diamond drilling 10,000 m, including geology and
assays, at $250 per meter.
Drilling access and permits.
Detailed sampling and mapping of two other targets
General and administration.
Total
US$
2,500,000
333,300
333,400
333,300
3,500,000
The total cost of the Stage 1 and Stage 2 exploration programs is US$4,400,000 and the
estimated time to completion is 12 months.
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26 July 2011
For both the Stage 1 and 2 programs it is recommended that a comprehensive QA-QC program
that meets current industry standards is used.
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26 July 2011
2 INTRODUCTION AND TERMS OF REFERENCE
2.1 Purpose of Report
Dr. Stewart D. Redwood, Consulting Geologist, prepared this independent Qualified Person’s
Technical Report of the Córdoba Project in the Municipality of Puerto Libertador, Department of
Córdoba, Republic of Colombia for Wesgold Minerals Inc. (Wesgold), a Canadian company
based in Vancouver whose shares are listed for trading on the Toronto Stock Exchange (TSX)’s
Venture Exchange. Wesgold has an option to acquire an interest in the Córdoba Project from
Minatura International LLC (Minatura).
The report is based on information known to the author as of 26 July 2011, which is the effective
date of the report.
2.2 Terms of Reference
The terms of reference were to prepare a Technical Report as defined in Canadian Securities
Administrators’ National Instrument 43-101, Standards of Disclosure for Mineral Projects, and
in compliance with Form 43-101F1 (Technical Report) and Companion Policy 43-101CP.
2.3 Sources of Information
The project has been described in a number of unpublished reports by Minatura and other
companies. The author considers that he has seen the most important reports and data and that
there are no significant omissions of information. The reports that were consulted, as well as
other published government reports and scientific papers, are listed in Section 27 “References”
of this report.
Posse, Herrera & Ruiz of Bogota, as the legal counsel to Wesgold, provided legal information
about the project. Macleod Dixon S.A.S., Bogota, as the legal counsel for Minatura and its
subsidiary Cordoba Minerals Holdings Ltd, also provided legal information.
2.4 Property Inspection
The author visited the property on 6 and 7 July 2011, accompanied by Romulo Tejera, Senior
Geologist, and Julian Manco, Project Geologist, Minatura.
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26 July 2011
2.5 Abbreviations
A list of the abbreviations used in the report is provided in Table 2.1. All currency units are
stated in US dollars, unless otherwise specified. Quantities are generally expressed in the metric
International System (SI) of units, including metric tonnes (t), kilograms (kg) and grams (g) for
weight; kilometres (km) and meters (m) for distance; hectares (ha) for area; and grams per metric
tonne (g/t) for gold and silver grades. Metal grades may also be reported in parts per million
(ppm). Precious metal quantities may also be reported in Troy ounces (ounces, oz) or castellanos,
an old Colombian unit (1 castellano equals 4.7680 g).
Description
Abbreviation
Atomic absorption spectrophotometer
AAS
Canadian Institute of Mining, Metallurgy and Petroleum
CIM
Canadian National Instrument 43-101
NI 43-101
Canadian Dollar
CDN$
Centimetre(s)
cm
Proyecto Coco Hondo S.A.S.
Coco Hondo
Republic of Colombia
Colombia
Colombian Peso
COP
Cordoba Minerals Corporation
Cordoba Minerals
Certified Standard Reference Materials
CSRM
Degree(s)
o
Degrees Celsius
o
Digital terrain model
DTM
Dual Resources Inc.
Dual Resources
United States' Dollar(s)
US$
Environmental Impact Study (Estudio de Impacto Ambiental)
EIA
Environmental Management Plan (Plan de Manejo Ambiental)
PMA
Gram(s)
g
Grams per metric tonne
g/t
Greater than
>
Hectare(s)
ha
Inductively coupled plasma spectrometer
ICP
Inductively coupled plasma atomic emission spectrometer
ICP-AES or ICP-ES
Inductively coupled plasma mass spectroscopy
ICP-MS
Instituto Colombiano de Geología y Minería
INGEOMINAS
International Organization for Standardization
ISO
Kilogram(s)
kg
Kilometre(s)
km
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26 July 2011
Square kilometre (s)
km2
Less than
<
Meter(s)
m
Million tonnes
Mt
Million Troy ounces
Moz
Million years
Ma
Millimetre(s)
mm
Minatura International LLC
Minatura
Minerales Córdoba S.A.S.
Minerales Córdoba
Mine Plan
PTO
Mining Energy Planning Unit (Unidad de Planeacion Minero Energetica)
UPME
Ministry of Mines and Energy (Ministerio de Minas y Energia)
MME
Minutes
‘
National Mining Registry (Registro Minero Nacional)
RMN
Not available/applicable
n.a.
Ounces (Troy)
oz
Parts per billion
ppb
Parts per million
ppm
Percent(age)
%
Plus or minus
±
Quality Assurance/Quality Control
QA-QC
Sistema de Informació Minero Colombiano
SIMCO
Système International d'Unités (International System of Units)
SI
Tonne (metric)
t
Toronto Stock Exchange
TSX
Universal Transverse Mercator
UTM
Wesgold
Table 2.1 List of abbreviations
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26 July 2011
3 RELIANCE ON OTHER EXPERTS
The author has relied on information supplied by Minatura and Wesgold for the property
description and environmental permitting and has not carried out independent verification of
these. Posse, Herrera & Ruiz of Bogota, as the legal counsel to Wesgold, provided legal
information about the project. Macleod Dixon S.A.S., Bogota, as the legal counsel for Minatura
and its subsidiary Cordoba Minerals Holdings Ltd, also provided legal information.
The author has also received technical information from Minatura’s geologists and management
and has done his best to verify the reliability of this information. The opinions expressed in this
report are based on the available information and geologic interpretations as provided by the
company.
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26 July 2011
4 PROPERTY DESCRIPTION AND LOCATION
4.1 Property Location
The Córdoba Project is located in the Municipality of Puerto Libertador, Department of Córdoba,
Republic of Colombia (Figure 4.1). The latitude and longitude for the Córdoba Project is about
7° 45’ 05” north and 75° 43’ 13” west (coordinates for the Montiel Mine on the east side of the
property; UTM 18N 0420577 - 0856864). Altitudes in the project are between about 100 m and
170 m above mean sea level (UTM).
Figure 4.1 Location map of Córdoba Project, Department of Córdoba, Colombia
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26 July 2011
4.2 Property Description
4.2.1 Legal Framework
Mining in Colombia is governed by the Mining Law 685 of 2001. It was modified by Mining
Law 1382 of 9 February 2010. The mining authorities in Colombia are as follows:
•
Ministry of Mines and Energy (Ministerio de Minas y Energia, MME): The highest
mining authority in the country.
•
INGEOMINAS (Instituto Colombiano de Geología y Minería or Colombian Institute of
Geology and Mining): The MME had delegated the administration of mineral resources
to INGEOMINAS and some Department Mining Delegations. INGEOMINAS has two
departments, the Geological Survey (Servicio Geológico), and the Mines Department
(Servicio Minero) which is responsible for all mining contracts except where
responsibility for the administration has been delegated to the Departmental Mining
Delegations.
•
Departmental Mining Delegations (Gobernaciones Delegadas): These administer mining
contracts in the Departments with the most mining activity (namely Antioquia, Caldas,
Bolívar, Boyacá, Norte Santander and César).
•
Mining Energy Planning Unit (Unidad de Planeación Minero Energética, UPME):
Provides technical advice to the MME regarding planning for the development of the
mining and energy sector and maintains the System of Colombian Mining Information
(Sistema de Información Minero Colombiano, SIMCO).
All mineral resources belong to the state and can be explored and exploited by means of
concession contracts granted by the state. Under the Mining Law of 2001, there is a single type
of concession contract covering exploration, construction and mining which is valid for 30 years
and can be extended for another 20 or 30 years, depending on whether the contract was signed
and registered after or before the amendment of the Mining Law 1382 of 9 February 2010.
Concession contract areas are defined on a map with reference to a starting point (punto
arcifinio) with distances and bearings, or map coordinates.
A surface tax (canon superficial) has to be paid for signed contracts annually in advance during
the exploration and construction phases of the concession contract. This is defined by the
Mining Law of 2010 as one minimum daily wage per hectare per year for years 1 to 5 (about
US$10.00), 1.25 minimum daily wages per hectare per year for years 6 and 7 (about US$12.52),
and 1.5 minimum daily wages per hectare per year for year 8 (about US$15.00). The 2010
Mining Law does not define the property tax for years 9 to 11. A reasonable interpretation could
14
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26 July 2011
be that the property tax for year 9 should be 1.5 minimum daily wages per hectare and per year
(the same as for year 8), and for years 10 and 11 should be 1.75 minimum daily wages per
hectare and per year (about US$17.52), on the basis that this provision appears to understand that
the property tax should be increased every two years by 0.25 minimum daily wages per hectare
and per year. This issue requires clarification from the Ministry of Mines and Energy. The
minimum daily wage in 2011 is Colombian Pesos (COP) 17,853.33 which, at the present
exchange rate of COP1,783 = US$1.00 (15 August 2011), is about US$10.01. The minimum
daily wage is adjusted annually.
Under the 2001 Mining Law, the surface tax varied with the size of the concession contract and
was 1 minimum daily wage for areas up to 2,000 ha, two minimum daily wages for areas
between 2,000 and 5,000 ha, and three minimum daily wages for areas above 5,000 ha. The 2010
Mining Law changed this to the same surface tax for all sizes of concession.
The application process for a concession contract is as follows:
1. Application submitted. The application form costs COP500,000 (about US$280).
Attached to this claim should be all legal, economic and technical documents including
the economic capacity of the applicant and the exploration proposal for the requested
area.
2. Technical study by the mining authority to determine whether there is any overlap with
other contracts or applications. The applicant is notified of the free areas.
3. Under the modifications to the Mining Law of 2010, the surface tax has to be paid within
three days of the notification of the technical study of free areas.
4. Once the surface tax is paid, the contract is prepared and signed.
5. The contract is inscribed in the National Mining Registry (Registro Minero Nacional,
RMN).
The full areas of the applications may be not granted in their entirety if there is overlap with
existing mining rights.
The concession contract has three phases:
1. Exploration Phase.
•
•
•
•
Starts once the contract is registered in the National Mining Registry.
Valid for 3 years plus up to 4 extensions of 2 years each, for a maximum of 11
years.
Annual surface tax.
Requires an annual Environmental Mining Insurance Policy for 5% of the value
of the planned exploration expenditure for the year.
15
•
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26 July 2011
Present a mine plan (PTO) and an Environmental Impact Study (Estudio de
Impacto Ambiental or EIA) for the next phase.
2. Construction Phase.
•
•
•
•
Valid for 3 years plus a 1 year extension.
Annual surface tax payments continue as in Exploration Phase.
Requires an annual Environmental Mining Insurance Policy for 5% of the value
of the planned investment as defined in the PTO for the year.
Environmental License issued on approval of Environmental Impact Study.
3. Exploitation Phase.
•
•
•
•
Valid for 30 years minus the time taken in the exploration and construction
phases, and is renewable for 30 years.
An annual Environmental Mining Insurance Policy required equivalent to 10% of
the estimated production in the PTO.
No annual surface tax.
Pay royalty based on regulations at time of granting of the Contract.
Royalties payable to the state are 4% of gross value at the mine mouth for gold and silver and
5% for copper (Law 141 of 1994, modified by Law 756 of 2002). For the purposes of royalties
the gold and silver price is 80% of the average of the London afternoon fix price for the previous
month.
The most important changes in the Mining Law 1382 of 2010 are:
• The exploration phase can now be up to 11 years, rather than 5 years.
• The contract length is reduced to 50 years (30 years plus 20 year extension) from 60
years (30 plus 30).
• The surface tax is the same for all sizes of concession, and increases from year 6.
• The surface tax for year 1 has to be paid within three days of notification of the free
areas.
• Once an application or contract is dropped or expires for whatever reason, the area does
not become free for staking again for a period of 30 days.
The MME suspended reception of new concession contract applications on 3 February 2011 for a
period of six months until 3 August 2011 and the suspension was extended until 3 February
2012, when a new mining authority with national jurisdiction should be in place named the
National Mining Agency (Agencia Nacional Minera).
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26 July 2011
4.2.2 The Wesgold-Minatura Agreement
The beneficial owner of 100% of the mining rights of the Córdoba Project is Minerales Córdoba
S.A.S. (Minerales Córdoba), a Colombian company which is owned 100% by Cordoba Mineral
Holdings Ltd., a company registered in Barbados which is, in turn, owned 100% by Cordoba
Minerals Corporation (Cordoba Minerals), a British Columbia company. This is owned 57.5%
by Minatura International LLC (Minatura), a Delaware limited liability corporation, and 40.2%
by Minatura Gold Ltd, a Nevada corporation (which is owned about 98% by Minatura). A
corporate organizational chart is shown in Figure 4.2.
Wesgold signed an option agreement with Minatura on 6 June 2011, which was restated and
signed on 26 July 2011, to acquire up to a 51% interest in the Cordoba Project. The terms of the
transaction are as follows:
• Wesgold will lend CDN$2.0 million (the Loan) to Minatura, the Loan being secured by
the Cordoba Project. The Loan was made on 14 June 2011.
• Minatura will nominate one representative to serve on Wesgold’s Board of Directors;
• Subject to at least one of the nine concession applications having been converted into a
signed concession contract and receipt of stock exchange approval, Wesgold will acquire
an initial 11% interest in the Cordoba Property through the purchase of shares in Cordoba
Minerals by paying CDN$2,030,000 to Minatura and forgiving the Loan, for a total
purchase price of CDN$4,030,000, and issuing to Minatura warrants to purchase up to
5.0 million shares of Wesgold at a price of CDN$0.40 per share, exercisable until the
earlier of the exercise or expiry of the Option (described below).
• If Wesgold does not acquire the 11% interest, the Loan will be repayable no later than 31
July 2012, with interest accruing at 8% per year.
• If Wesgold completes the acquisition of the 11% interest, Wesgold will then be granted
an option (the Option) to acquire an additional 40% interest (for a total of 51%) of
Cordoba Minerals by expending CDN$15.0 million on exploration of the Cordoba
Property and paying to Minatura an additional CDN$2.0 million within 2.5 years.
CDN$5.0 million of the exploration expenditures will be a firm commitment.
• If Wesgold exercises the Option and acquires the full 51% interest, Minatura will have a
one-time right to sell its remaining 49% interest in Cordoba Minerals to Wesgold in
consideration for shares in Wesgold. The issuance of these shares would be subject to
approval by the Wesgold shareholders at that time.
• If Minatura elects to sell its remaining interest and the Wesgold shareholders do not
approve the issuance of the shares, Minatura may buy back 2% of the outstanding shares
of Cordoba Minerals from Wesgold for CDN$1,000, resulting in Minatura owning 51%.
• If Minatura does not sell its remaining interest, Wesgold and Minatura will form a 51:49
joint venture to further develop the Cordoba Property.
17
•
S. Redwood
26 July 2011
If Wesgold does not exercise the Option then Minatura has a onetime right to purchase
back the initial 11% interest in Cordoba Minerals for CDN$1.00.
Figure 4.2 Corporate organizational chart of ownership of Minerales Cordoba S.A.S.
4.2.3 Córdoba Project Mining Rights
The package of mining rights covered by the Wesgold-Minatura agreement is 25,797 hectares
(ha) or about 258 km2 in ten properties. These comprise one concession contract and nine
applications with the free areas declared. The mining rights are listed in Table 4.1 and are shown
in Figure 4.3. The mining rights are identified in the figures by their Claim Numbers (Código
Expediente) which are the numbers used by the Colombian Mining Cadastral survey maintained
by INGEOMINAS.
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26 July 2011
The concession contract number HI6-15311 was awarded to Camara Minera de Colombia
Compania Limitada. This was later merged into Proyecto Coco Hondo S.A.S. (Coco Hondo), a
subsidiary of Minatura. The title was subsequently assigned in the NMR to Minatura Colombia
S.A.S.
The concession applications were made by Coco Hondo. With the purpose of isolating the title
and mining applications of the Córdoba Project, Minatura incorporated Minerales Córdoba.
Minatura Colombia and Coco Hondo contributed the 100% interest in the mining rights to
Minerales Córdoba as consideration for the acquisition of 20,000 and 5,000 common shares of
Minerales Córdoba, respectively. Subsequently, Minatura Colombia and Coco Hondo transferred
the 100% of the acquired shares back to Minerales Córdoba in exchange for the payment by
Minerales Córdoba of USD$560,000 and USD$140,000, respectively.
Minatura and Coco Hondo undertook to transfer and register the transfer of the 100% of the
mining rights to Minerales Córdoba before the Mining Authority. Minerales Córdoba is the sole
beneficiary of the 100% of the mining rights, subject to prior approval of the Mining Authority
and registration in the National Mining Registry.
The assignment of the mining applications to Minerales Córdoba can only occur once concession
contracts have been awarded and registered in the NMR. Coco Hondo have signed assignment
agreements and promises of assignment in favour of Minerales Córdoba.
There is a mining legalization from a group of local artisanal miners covering part of
application LEB-08491. Cordoba Minerals disputes the validity of the claims made in the
request.
19
Claim
Number
Date of
Application
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26 July 2011
Date of
Registration
Status
HI6-15311
2
JKC-08221
12/11/2008
Application
Proyecto Coco Hondo S.A.S. (2)
3
LCP-08142
LCQ16171
LEB-08491
LED-10191
LEQ-15161
LG6-08061
LJT-10551
LK8-09321
25/03/2010
Application
4,416.0100
26/03/2010
Application
1,218.3570
11/05/2010
13/05/2010
26/05/2010
06/06/2010
29/10/2010
08/11/2010
Application
Application
Application
Application
Application
Application
1,184.1577
233.6385
673.0200
307.7000
483.8637
8,976.6700
5
6
7
8
9
10
01/05/2038 Concession contract
Concessionaire / Applicant
Minatura Colombia S.A.S. (1)
Granted /
Free Area
(hectares)
1
4
02/05/2008
Date of
Expiry
8,205.8745
97.9795
Table 4.1 Description of Córdoba Project mining rights.
Table compiled from information supplied by Posse, Herrera & Ruiz, Bogota, legal counsel for Wesgold, in a report dated 3 June 2011, and Macleod Dixon
S.A.S., Bogota, legal counsel for Cordoba Minerals Holdings Ltd in a letter dated 12 August 2011.
Note 1: Contract awarded to Camara Minera de Colombia Compania Limitada. This was later merged into Proyecto Coco Hondo S.A.S. The title has been
assigned in the NMR to Minatura Colombia S.A.S.
Note 2: Application made by Promocion de Proyectos Mineros S.A. This was later merged into Proyecto Coco Hondo SAS, together with Camara Minera de
Colombia Compania Limitada. Proyecto Coco Hondo S.A.S. has assigned the rights to Minerales Cordoba S.A.S.
20
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26 July 2011
Figure 4.3. Map of the Córdoba Project mining properties.
(Colombian coordinates, Bogota origin)
21
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26 July 2011
4.3 Environmental Regulations and Liabilities
The Mining Law 685 of 2001 requires an Environmental Mining Insurance Policy for each
concession contract. In addition, the Law states that an Environmental Impact Study (EIA) has to
be presented at the end of the Exploration Phase if the concession is to proceed to the
Construction Phase. The EIA must be approved and an Environmental License issued before the
Exploitation Phase can begin, subject to an Environmental Management Plan (Plan de Manejo
Ambiental or PMA). In addition, exploitation requires a Permit for springs, Forest Use Permit,
Certificate of Vehicular Emissions, Emissions Permit, and River Course Occupation Permit.
Exploration activities require an Environmental Management Plan (PMA) and a Surficial Water
Concession.
The Córdoba Project has potential environmental liabilities due to informal artisanal mining
activities, including:
•
•
•
Surface disturbance and degradation including deforestation.
Waste rock and tailings from mining operations.
Contamination of soil and water by mercury, cyanide, arsenic, acid drainage, heavy
metals and solids from past mining operations.
Under Colombian mining and environmental laws, Minerales Córdoba is responsible for any
environmental remediation and any other environmental liabilities based on actions or omissions
occurring from and after the entry into force and effect of the relevant concession contract,
exploration license or mining request, as applicable, even if such actions or omissions occurred
at a time when a third party was the owner of the relevant mining title. On the other hand,
Minerales Córdoba is not responsible for any such remediation or liabilities based on actions or
omissions occurring before the entry into force and effect of the relevant concession contract,
exploration license or mining request, as applicable, from historical mining by previous owners
and operators, or based on the actions or omissions of third parties who carry out activities
outside of the mining title (such as illegal miners).
Minerales Cordoba is conducting an environmental and social baseline report to clearly establish
the conditions in the concessions before the start of exploration activities. A preliminary report
was produced by Ceballos & Ángel in August 2011.
The Paramillo National Natural Park is situated in the forested mountains to the south and west
of the Córdoba Project. The park does not overlap with the mining properties but it shares a
boundary with them, meaning that it is highly probable that the buffer area is within some parts
of the mining properties. It is recommended that the boundaries of the buffer zone be verified.
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26 July 2011
The mining cadastral indicates that there is a restricted area in part of mining properties HI615311, JCK-08221, LCP-08142, LEB-08491 and LEQ-15161, although the nature of the
restricted area is not clear. Cordoba Minerals states that there is an error in the mining cadastral
and that no actual restriction exists. The mining authority has acknowledged the error in writing
and a correction in the cadastral website has been requested.
Law 1382 of 2010 which modified the Mining Law prohibits exploration and mining in national
parks, regional parks, forest reserves, the “páramo” (moorland) and wet lands. The páramo
ecosystem is defined as an ecosystem above 3,200 m altitude consisting of glaciated uplands
with lakes and peat bogs. All of the mining properties that comprise the Córdoba Project are
located below the paramo ecosystem and are not affected by this law.
4.4 Surface Rights
In Colombia there is no need to have surface ownership to access the subsoil. The Mining Law
provides the mining servitudes and the possibility of expropriation of the surface, in case it is
required, since the mining activity is considered to be in the public interest. Wesgold and
Minatura do not own any surface rights in the project area.
4.5 Water Rights
Exploration activities require a Surficial Water Concession if a natural resource is required to be
used, especially for drilling. Minerales Cordoba is gathering information in order to apply for the
requisite Surficial Water Concession.
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26 July 2011
5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY
5.1 Accessibility
The Cordova Project is located 395 km northwest of Bogotá, the capital of Colombia, 170 km
north of Medellin (280 km by road), the capital of the Department of Antioquia and the second
largest city in Colombia, and 112 km south of Montería, the capital of the Department of
Córdoba. Access to the project is by road from Medellin, Caucasia or Montería. The distances
are listed in Table 5.1 and the routes are shown in a plan in Figure 5.1
There are daily scheduled flights from Medellin to the city of Caucasia (population about
90,000) where there is a surfaced airstrip by ADA (Aerolineas de Antioquia) using Twin Otter
aircraft, and then by road to the project. The flight time is 40 minutes. There are also scheduled
flights to the city of Monteria (population about 410,000) by ADA and other airlines, with a
more frequent service than that to Caucasia.
From
Medellin
Caucasia
Montelíbano
Puerto Libertador
To
Caucasia
Montelíbano
Puerto Libertador
Montiel Mine
Road
Surfaced
Surfaced
Unsurfaced, graded
Unsurfaced track,
poor condition
Distance (km)
280
33
38
21
Table 5.1 Road access to the Córdoba Project.
24
Time (hours)
4h0m
0 h 30 m
0 h 40 m
1h0m
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26 July 2011
Figure 5.1 Plan of road access to the Córdoba Project.
Coordinates in UTM WGS84. Department of Córdova outline in white. Municipality of Puerto Libertador in light
gray.
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26 July 2011
5.2 Climate
The Córdoba Project has a tropical wet climate with an average temperature of 27.5°C and an
annual rainfall of approximately 2,500 mm (data for Puerto Libertador). The highest rainfall is
between May and September.
The Córdoba Project is mostly within the tropical, premontane wet forest ecological zone (bh-T)
of the Holdridge Life Zone climatic classification system. Most of the original forest cover has
been cleared for agriculture and grazing. Land is used mainly for cattle and mining.
5.3 Local Resources and Infrastructure
The Municipality of Puerto Libertador has a population of about 34,000. The main population
center is the town of Puerto Libertador. The project includes the villages of Juan José, San Juan,
La Rica, Santa Fe, Las Claras (Río Verde) and Villa Nueva, and the hamlets of San Juan Alto,
San Juan Medio, Williams, Morrocoy, La Piedra Indígena and Piragua.
There are indigenous Zenú and Embera settlements in claim LEB-08491. A community survey is
required to be carried out on this claim before exploration or exploitation activity can be carried
out.
Hotel accommodation and field supplies are available in the towns of Puerto Libertador and
Montelíbano.
Field personnel for the exploration program are available locally from artisanal mines on the
project and from the nearby towns and villages. The district is expected to be able to supply the
basic workforce for any future mining operation.
There is an airstrip at Montelíbano, and surfaced airports with scheduled flights at Caucasia and
Monteria.
The Córdoba Project is about 220 km west of the Pacific Ocean and 115 km west of the Gulf of
Uraba of the Caribbean Sea or Atlantic Ocean. The nearest ports are at Tolú (220 km by road)
and Cartagena (360 km by road) on the Atlantic Ocean. Caucasia is situated on the navigable
Cauca River, part of the Magdalena River system which enters the Atlantic Ocean at
Barranquilla.
The nearest railway is at Medellin, 170 km to the south.
The national electricity grid supplies the towns of Puerto Libertador and Montelíbano and the
Cerro Matoso mine. The national gas grid supplies the Cerro Matoso operation also.
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26 July 2011
The region has high rainfall and there are ample water resources available. Water rights belong
to the state and are governed by Decree 1541 (1978).
5.4 Physiography
The Córdoba Project is located in the northern foothills of the Western Cordillera and Caribbean
lowlands where the north-south trending mountains die out into the plains with altitudes of less
than 100 m.
The project is in the Upper San Jorge river basin. The north-flowing San Pedro River flows
through the eastern part of the Córdoba Project, while the north-flowing San Jorge River lies
west of the project. These are part of the Magdalena River system which drains into the Atlantic.
The Paramillo National Park is situated in the forested mountains to the south and west of the
Córdoba Project.
Figure 5.2 General view of the Córdoba Project.
Looking south west from the Montiel Mine at the north-south trending foothills of the Western Cordillera where
they die out into the Caribbean plains. The San Pedro river is in the middle distance. The edge of the Montiel open
pit mine working is in the foreground, and the El Alacrán mine is located in the ridge in the background left.
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6 HISTORY
6.1 Colombian Gold Mining History
Colombia was historically the top gold producer in South America with total recorded gold
production of about 91 million ounces (Moz) (1511-2010). Colombia ranked as the fourth
largest gold producer in Latin America in 2009 with 1.53 Moz, after Peru (5.86 Moz), Brazil
(1.93 Moz) and Mexico (1.65 Moz), and fourteenth worldwide (US Geological Survey 2009
Minerals Yearbook). These figures indicate the high gold exploration potential of the country,
given that there has been no modern gold exploration until recently, nor major new mine
developments.
Colombian historical gold production is estimated between 29 Moz and 35 Moz from the
Spanish conquest in 1537 until the start of the California gold rush in 1848, making Colombia
the largest gold producer of the Spanish empire and the second in South America after Brazil
(Restrepo, 1952). Seventy-five percent of this production came from the Departments of
Antioquia and Caldas. Colombian gold production between 1514 and 1934 has been estimated
at 49 Moz which makes Colombia number one in South America with 38% of the total
production (Emmons, 1937). Two-thirds of the gold production was from placer deposits.
Subsequent Colombian production is estimated at 30 Moz by the Banco de la Republica (Shaw
2000), and gold production between 2000 and 2010 was 12.11 Moz (INGEOMINAS). Gold
production in 2010 was 1.72 Moz, mainly from the Departments of Chocó (46%) and Antioquia
(35%), an increase of 45% over the decade (2000 – 1.19 Moz).
6.2 Córdoba History
Informal artisanal mining activity for gold is carried out at several places on and adjacent to the
project in both alluvial and the weathered zone of hard rock deposits. These are described in
Section 7.3 and their locations are shown on Figure 7.2. Stamp mills, sluices and pans are used to
recover gold.
The only modern exploration to be carried out for gold and copper in the project area was at El
Alacrán and Rá in 1984-86 by Canadian junior company Dual Resources Inc. (Dual Resources),
and in 1995-1998 by Colombian company Sociedad Ordinaria de Minas Santa Gertudis, which
changed its name to Sociedad Minera El Alacrán S.O.M. in 1996. The Córdoba Project mining
licenses surround El Alacrán but Cordoba Minerals does not have an interest in El Alacrán. The
Rá mine is part of the Córdoba mining licences.
The exploration at El Alacrán included drilling of 15 diamond drill holes for 2,407 m by Dual
Resources and the estimation of historical mineral “reserves” of 13.5 Mt grading 0.85 g/t Au and
28
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26 July 2011
0.3% Cu containing 367,880 ounces of gold and 42,455 tonnes of copper in “proven”,
“probable” and “postulated” categories (Vargas, 1998). This is a historical mineral resource and
not a mineral reserve, and was made before the introduction of NI 43-101. The criteria used to
estimate the mineral resource are not known and it is included here for information purposes
only.
Dual Resources also drilled five holes of 70-120 m length each at the Rá Mine in 1984-86, but
the results and core are reported as lost (Vargas, 1998).
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7 GEOLOGICAL SETTING AND MINERALIZATION
7.1 Regional Geology
The Córdoba Project lies within the San Jacinto terrane, one of the accreted oceanic terranes that
form the Western Cordillera of Colombia (Figure 7.1; Cediel & Cáceres, 2000; Cediel et al.,
2003). It is separated from the continental margin of the Central Cordillera on the east side by the
Cauca-Almaguer Fault, a name synonymous with the Romeral Fault, which has large scale right
lateral movement. The timing of accretion of the San Jacinto terrane is poorly constrained, but it
contains turbidite sequences of continental affinity starting in the Paleocene, and erosional
surfaces recorded in the early Eocene suggest pre-Oligocene collision (Cediel et al., 2003). The
Sinú terrane, which lies west of the San Jacinto terrane, has Oligocene-aged turbidites and
accretion is interpreted for the Miocene. Sometime before the Late Miocene the Cañas Gordas
terrane was accreted to northwest Colombia further to the west.
30
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26 July 2011
Figure 7.1 The tectonic setting of the Córdoba Project.
(Source: Cediel et al., 2003).
31
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26 July 2011
7.2 Project Geology
The geology of the Córdoba Project is shown in Figure 7.2, based on the INGEOMINAS
1:500,000 scale map. The Córdoba Project is underlain by Late Cretaceous volcano-sedimentary
rocks of the Cañasgordas Group and La Equis Group. The Cañasgordas Group is subdivided into
the Barroso Formation (labelled as Ksvb or K2-Vm4 on Figure 7.2) of tholeiitic basic volcanic
rocks with pyroclastic rocks and siliceous sediments in the upper part, and the Penderisco
Formation (Kslb or K2K6-Mds4) of chert, siliceous mudstones, and some dark gray to black
lithic arenites. The Cañasgordas Group are ocean floor basalts and sediments.
To the east the Cauca-Almaguer Fault puts these in contact with the Palaeozoic Cajamarca
Complex (NP?-CA?-Mev2) of graphitic schist, quartz sericite schist, chlorite schist, amphibolite,
phyllite, quartzite, marble and serpentinite.
These are overlain to the north by sedimentary rocks of Oligocene-Miocene age of the Upper
San Cayetano Formation (e8n2-St) of ferruginous sandstones to conglomerates, interbedded with
calcareous shales and coals, and the Cerrito Formation (n3n5-St) of calcareous mudstones and
shales with sandstone beds, and by extensive Quaternary alluvial deposits.
Dual Resources mapped the central part of the Córdoba Project between the Rá mine and the San
Pedro River and defined three lithological units, described from east to west (Vargas, 1998):
• Felsic pyroclastic rocks in the eastern part (tuff, agglomerate of rhyolite-dacite
composition, minor andesite and chert), several hundred meters thick. Host to
mineralization at the Rá Mine.
• Overlain to the west by volcano-sedimentary rocks (sandstone, arkose, greywacke,
siltstone, calcareous mudstone, andesite flows, siliceous tuffs), 150-300 m thick. Host to
mineralization at El Alacrán. Six lithological units were defined within this unit.
• Basic volcanic rocks in the west (basalt and andesite).
These are intruded by diorite, quartz monzonite or quartz diorite porphyries including those that
host porphyry Cu-Au mineralization at Montiel and Teherán. The age of the porphyry intrusions
is not known but it may be similar to the Upper Miocene monzonite porphyry stocks further
south dated at ca 11 Ma at Paramo de Frontino, Rio San Juan, Cerro Frontino, Morrogacho and
La Horqueta, which host Au-Ag and base metal mineralization (Gonzalez & Londoño, 2003).
32
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26 July 2011
Figure 7.2 Geological Map of the Córdoba Project with location of artisanal mines.
(Source: INGEOMINAS Atlas Geológico de Colombia, Sheet 5-05, 1:500,000 scale, 2007)
33
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26 July 2011
7.3 Mineralization
There are several artisanal gold mines in the area of the Córdoba Project called Montiel,
Teherán, El Alacrán, Mina Seca, Mina Rá, La Bonga (alluvial) and El Inglés (alluvial). Their
locations are shown on Figure 7.2. The author visited the first three during the site visit. The
Montiel, Mina Rá and El Inglés mines are located within the mine properties of Minerales
Cordoba while the others are on properties held by third parties. The Montiel mine is operated by
backhoes and average monthly production of about 30 to 32 castellanos (4.6 to 4.9 ounces; 1
castellano equals 4.7680 g). The Teherán mine has three stamp mills and produces an average of
1 castellano (0.15 ounces) of gold per day.
Mineralization at the Montiel Mine is hosted by diorite porphyry and aphyric basalt with a well
developed quartz vein stockwork with supergene argillic alteration after potassic alteration, with
magnetite and localized sericite alteration. Gold is mined in a large, shallow open pit on a
hillside and in alluvial deposits in a river on the east side.
The Teherán Mine, 0.7 km east of the Montiel Mine, is also hosted by a diorite porphyry with
plagioclase and hornblende with supergene kaolinite and hypogene magnetite alteration and
abundant quartz veins in a stockwork, with veins often flat lying. There is massive goethite and
rare remnants of chalcopyrite, and abundant malachite, some azurite. Gold is mined in an open
pit.
Mineralization at Montiel and Teherán is a porphyry system with potassic alteration with
magnetite, a well developed stockwork of A and B type quartz veins (some with magnetite).
There is supergene argillic alteration with gold, and a copper oxide zone is present at Teherán.
The two deposits are probably connected and form a single porphyry system at least 900 m long.
Outcrops in the river between the two mines are in basalt with potassium-feldspar-magnetite
alteration and veinlets of quartz-pyrite, magnetite and chalcopyrite.
Vargas (1998) also mentions disseminated pyrite-chalcopyrite-magnetite mineralization in a
porphyry stock north of El Alacrán at an unspecified location.
The El Alacrán Mine is 2.0 km southwest of Montiel. Gold is mined in a gossan by the
Asociacion de Mineros de El Alacrán with about 80 miners and 30 adits. Mineralization is hosted
by basalts and bedded siliceous siltstones or tuffs, belonging to the Barroso Formation. The
bedding strikes about north-south and dips 60-70° west. There is a 30 m wide zone of
hydrothermal alteration zoned outwards from silica to phyllic to argillic, mined over 800 m
length. Mineralization is associated with silicification and comprises irregular quartz veinlets,
coarse magnetite, specularite, chalcopyrite, bornite and pyrite. There is secondary chalcocite and
covellite. There are float blocks of monzonite porphyry.
34
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26 July 2011
There is float with magnetite-specularite replacement by the road northeast of El Alacrán and
within the Córdoba property.
The Rá Mine is 1.5 km south of El Alacrán. Vargas (1998) described the mineralization as
hosted by the basal pyroclastic unit and forming a stockwork with quartz veins with pyrite,
chalcopyrite, sphalerite and galena with up to 25 g/t Au at surface. Five holes between 70-120 m
long were drilled by Dual Resources, reportedly without encouraging results, but the results and
core are lost (Vargas, 1998).
Figure 7.3 Open pit artisanal mine workings at La Montiel Mine.
Figure 7.4 Quartz veinlet stockwork at La Montiel.
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26 July 2011
Figure 7.5 Copper oxides in artisanal gold mine at Teherán.
Figure 7.6 Quartz veinlets with goethite and copper oxides in supergene argillic altered porphyry dacite with
magnetite after hypogene potassic alteration at the Teherán mine.
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26 July 2011
7.4 Metallogenesis
The age and metallogenic setting of the Au-Cu mineralization in the Córdoba Project is not well
defined. The age of the porphyry intrusions is not known but it may be similar to the Upper
Miocene monzonite porphyry stocks to the south which have dated at about 11 Ma at Paramo de
Frontino, Rio San Juan, Cerro Frontino, Morrogacho and La Horqueta, and which host Au-Ag
and base metal mineralization (Gonzalez & Londoño, 2003).
The Córdoba Project is interpreted by the author to form the northern continuation of the Middle
Cauca Gold Belt, also called the Central Porphyry sub-belt (Sillitoe et al., 1982), of Middle to
Late Miocene age. Mineralization is related to the emplacement of the porphyry stocks. The belt
extends for about 360 km in a north-south direction if Córdoba is included. The gold
mineralization in the belt is of porphyry style and intermediate sulfidation epithermal style. The
most significant porphyry deposit is La Colosa, near Cajamarca, Tolima, 360 km south of
Córdoba, which was discovered by AngloGold Ashanti in 2008, with a JORC inferred mineral
resource of 12.4 Moz gold grading 0.99 g/t in 392 Mt (AngloGold Ashanti Mineral Resource and
Ore Reserve Report, 2010). The other major gold deposit in the belt is Marmato, located 250 km
south of Córdoba. Marmato is an intermediate sulfidation epithermal deposit with a NI 43-101
compliant measured and indicated mineral resource of 226 Mt grading 0.9 g/t Au and 5.1 g/t Ag
containing 6.6 Moz Au and 37 Mt Ag, plus an inferred mineral resource of 116 Mt at 0.9 g/t Au
and 5.9 g/t Ag containing 3.2 Moz Au and 22 Moz Ag, for a total of 9.8 Moz Au and 59 Moz
Ag, at a 0.3 g/t Au cut off (Parsons, 2011).
The porphyry deposits in the belt tend to be gold rich. Some have copper, such as the Cerro Veta
porphyry copper-gold deposit at Titiribi, which has a NI 43-101 compliant inferred mineral
resource of 230 Mt at 0.5 g/t gold and 0.2% copper, containing 3.7 Moz gold and 0.46 Mt copper
(Montgomery, 2010).
Preliminary observations and sampling at Montiel and Teherán indicate that the porphyry
contains significant grades of both gold and copper.
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26 July 2011
8 DEPOSIT TYPES
Mineralization at Montiel and Teherán is porphyry style Cu-Au.
The mineralization at El Alacrán has been assigned to several different models including
volcanogenic massive sulphide (Vargas, 1998), or more recently iron oxide copper-gold (IOCG).
An alternative interpretation is that it may be epithermal veins peripheral to a porphyry system.
Porphyry copper systems were reviewed by Sillitoe (2010). Porphyry copper systems may
contain porphyry Cu ± Mo ± Au ± Ag deposits of various sizes from less than 10 million tonnes
to 10 billion tonnes. Typical primary porphyry Cu deposits have average grades of 0.5 to 1.5%
Cu, <0.01 to 0.04% Mo, and 0.01 to 1.5 g/t Au, although a few gold-only deposits have grades of
0.9 to 1.5 g/t gold but little Cu (<0.1 %).
The alteration and mineralization in porphyry copper systems can have a volume of many cubic
kilometres of rock and are zoned outward from stocks or dike swarms, which typically comprise
several generations of intermediate to felsic porphyry intrusions. Porphyry Cu ± Au ± Mo
deposits are centered on the intrusions. High-sulfidation epithermal deposits may occur in
lithocaps above porphyry Cu deposits, where massive sulphide lodes tend to develop in deeper
feeder structures and Au ± Ag-rich, disseminated deposits within the uppermost 500 m or so.
Less commonly, intermediate sulfidation epithermal mineralization, chiefly veins, may develop
on the peripheries of the lithocaps. The alteration-mineralization in the porphyry Cu deposits is
zoned upward from barren, early sodic-calcic through potentially ore-grade potassic, chloritesericite, and sericitic, to advanced argillic, the last of these constituting the lithocaps, which may
attain >1 km in thickness if unaffected by significant erosion. Low sulfidation-state chalcopyrite
± bornite assemblages are characteristic of potassic zones, whereas higher sulfidation-state
sulphides are generated progressively upward in concert with temperature decline and the
concomitant greater degrees of hydrolytic alteration, culminating in pyrite ± enargite ± covellite
in the shallow parts of the lithocaps. The porphyry Cu mineralization occurs in a distinctive
sequence of quartz-bearing veinlets as well as in disseminated form in the altered rock between
them. Magmatic-hydrothermal breccias may form during porphyry intrusion, with some of them
containing high-grade mineralization because of their intrinsic permeability. In contrast, most
phreatomagmatic breccias, constituting maar-diatreme systems, are poorly mineralized at both
the porphyry Cu and lithocap levels, mainly because many of them formed late in the evolution
of systems.
Iron oxide copper-gold (IOCG) deposits are ore bodies of hydrothermal origin associated with
specular hematite and magnetite, but deficient in sulphides, and enriched in Cu, Au, Ag, U, REE,
Bi, Co, Nb and P. They were first described by Hitzman et al. (1992), and recent reviews are
given by Williams et al. (2005) and Corriveau (2007). They form breccias, veins, disseminations
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26 July 2011
and massive bodies. There is no clear spatial association with igneous intrusions but there is a
broader association with batholithic granitoids or alkaline-carbonatite stocks. There is regional
calcic-sodic regional alteration overprinted by focused potassic, sericite and iron oxide alteration.
The deposits form at shallow to mid crustal levels in extensional, anorogenic or orogenic,
continental settings such as intracratonic or intra-rift arcs, continental margin arcs and back arc
basins. Deposit sizes can be greater than 100 Mt ranging up to more than 1,000 Mt, with metal
grades that exceed those in most porphyry Cu ± Au deposits. In the Andes, IOCG deposits of
Jurassic to Early Cretaceous age occur in the Coastal Cordillera of Chile and Peru (Sillitoe,
2003).
39
S. Redwood
26 July 2011
9 EXPLORATION
Cordoba Minerals have carried out reconnaissance geochemical exploration at the Córdoba
Project. No geological mapping, topographic surveys, other geochemistry or trenching has been
carried out. Wesgold have carried out no exploration yet.
The geochemical sampling consisting of visiting known mineral showings at artisanal mines, and
taking 31 rock chip and grab samples for geochemical analysis in February and May 2011. A
table of results for selected elements is given in Table 9.1and a map of sample waypoints is
shown in Figure 9.1. Gold values range from <5 ppb to 37.0 ppm, with 3 samples above 1 g/t.
Silver values range from <0.2 to 16.8 ppm. Copper values vary from 26 ppm to 3.9%.
Molybdenum is weakly anomalous, with values up to 58 ppm. Arsenic, lead, antimony, mercury,
selenium and tellurium are not anomalous.
40
S. Redwood
26 July 2011
Waypoint
Sample
Number
Au
ppb
Ag
ppm
As
ppm
Cu ppm
Mo
ppm
Pb
ppm
Sb
ppm
Zn
ppm
Hg
ppm
Se
ppm
Te
ppm
Jn2
252451
340
2.8
17
1035
25
17
<5
29.5
<1
<10
23
Jn3
252452
232
2.2
4
3147
2
<2
<5
165
<1
<10
15
Jn4
252453
66
1.4
<3
1511.6
1
<2
<5
51.3
<1
<10
12
Jn4
252454
66
16.8
<3
724.8
4
<2
<5
8.3
<1
<10
<10
Jn5
252455
27
1.1
3
197.6
<1
<2
<5
37.8
<1
<10
<10
Jn5
252456
36
1.4
4
4881.2
58
<2
<5
315.3
<1
<10
24
Jn6
252457
19
0.6
<3
78.8
3
<2
<5
88.6
<1
<10
<10
Jn7
252458
<5
1.1
3
65.4
<1
<2
<5
63.5
<1
<10
<10
Jn8
252459
<5
0.8
5
82.4
1
<2
<5
60.9
<1
<10
<10
Jn11
252460
6
<0.2
<3
150.5
2
<2
<5
10.7
<1
<10
13
Jn12
252461
278
<0.2
<3
334.5
2
<2
<5
22.1
<1
<10
11
Jn13
252462
<5
0.3
<3
389.2
2
<2
<5
24.2
<1
<10
12
Jn13
252463
12
0.8
<3
480.4
2
<2
<5
26.1
<1
<10
14
Jn14
252464
16
0.4
<3
489.1
3
<2
<5
38.6
<1
<10
16
Jn17
252465
2696
6.2
<3
39000
2
19
<5
59.9
<1
<10
<10
Jn17
252466
4505
9.2
<3
28800
1
10
<5
53.9
<1
<10
<10
Jn19
252467
10
0.4
<3
192.5
3
<2
<5
74.5
<1
<10
<10
Jn19
252468
<5
<0.2
<3
66.5
1
<2
<5
26.5
<1
<10
<10
Jn20
252469
<5
0.2
<3
200.1
4
<2
<5
32
<1
<10
12
Jn21
252472
21
<0.2
<3
922.5
26
18
<5
46
<1
<10
38
Jn22
252470
7
0.2
<3
93
6
<2
<5
18.6
<1
<10
<10
Jn22
252471
<5
0.2
<3
97.1
5
<2
<5
11.6
<1
<10
14
Jn24
252473
91
0.8
<3
418.2
1
<2
<5
60.6
<1
<10
15
Jn25
252474
37001
12.1
<3
2998.9
6
36
<5
179.5
<1
<10
71
Jn27
252475
<5
0.2
<3
95.6
1
<2
<5
113.6
<1
<10
15
Jn34
252476
9
1.6
<3
90.7
2
<2
<5
82.2
<1
<10
13
Jn35
252477
<5
<0.2
<3
26.3
2
<2
<5
3
<1
<10
<10
Jn36
252478
12
0.8
3
150.2
1
<2
<5
93
<1
<10
12
Jc1
Jc1
390
0.80
<3
79.10
<1
2
<5
10.90
<1
<10
<10
Jc2
Jc2
520
<0.2
<3
1392.80
<1
5
<5
21.30
<1
<10
<10
Jc3
Jc3
480
0.40
<3
2438.20
<1
3
<5
23.60
<1
<10
<10
Table 9.1 Geochemical analyses for selected elements for reconnaissance rock chip samples from Córdoba
Project taken by Cordoba Minerals, February and May 2011.
41
S. Redwood
26 July 2011
Figure 9.1 Location of reconnaissance rock chip samples taken by Cordoba Minerals from the Córdoba
Project.
Map shows waypoints. Not all waypoints were sampled.
42
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26 July 2011
10 DRILLING
No drilling has been carried out at the Córdoba Project by Cordoba Minerals or Wesgold.
Dual Resources drilled five diamond drill holes of 70-120 m length each at the Rá Mine in 198486 but the results and core are reported as lost (Vargas, 1998).
43
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26 July 2011
11 SAMPLE PREPARATION, ANALYSIS AND SECURITY
The Cordoba Minerals samples were prepared by SGS Colombia SAS in Medellin and analyzed
at the SGS del Perú S.A.C. laboratory in El Callao, Peru. These companies are part of SGS
which is ISO 9001:2008 registered and ISO 17025 accredited in Peru and North America.
The sample preparation procedure was to dry the sample and crush the entire sample to >95%
passing ‐2 mm, then make a 250 g to 500 g split using a riffle splitter, and pulverize the split to
>95% passing minus 140 mesh in 800 cc chrome steel bowls in a Labtech LM2 vibrating ring
mill.
SGS del Perú S.A.C. analyzed samples for gold by fire assay (30 g sample) with an atomic
adsorption spectroscopy (AAS) finish on a 50 g sample (code FAA515), with over limit samples
repeated by fire assay with a gravimetric finish on a 50 g sample (method FAG505).
Multielement geochemical analyses were done by a two acid (nitric and hydrochloric) digestion
and ICP‐atomic emission spectrometer (ICP-AES) for 39 elements (method ICP12B). Over limit
samples for copper and lead were repeated by multi-acid digestion and AAS (method AAS41B).
Whole rock silicate analyses were done by lithium metaborate fusion and ICP-AES (method
ICP95A).
No quality assurance – quality control (QA-QC) was carried out on the reconnaissance sampling
program. It is recommended that a full QA-QC program that meets the best practices guidelines
currently used within the industry be carried for all future sampling and drilling programs using
certified standard reference materials (CSRM), blanks, field duplicates, preparation duplicates,
replicates and check samples.
44
S. Redwood
26 July 2011
12 DATA VERIFICATION
The author has verified the data used upon in this report by visiting the property and confirming
the geology and mineralization, and by carrying out independent check sampling.
Chip and grab samples were taken by the author of mineralization exposed on surface at several
locations in the Córdoba Project. The samples were collected in plastic bags, a sample number
was inserted, and the bag was sealed with a cable tie. The samples were kept in the author’s
custody in the field and hotel, and were sent by courier to the SGS laboratory in Medellin. The
samples were prepared by SGS in Medellin, and sample pulps were sent by them by courier to be
analyzed at their laboratory in El Callao, Lima, Peru. The sample descriptions and summary of
results is shown in Table 12.1 and the assay certificate number MC1101050 is given in Annex 1.
The results of the independent check sampling confirm the presence of anomalous amounts of
gold, silver and copper at the Córdoba Project in quantities similar to those reported by Córdoba
Minerals. The grades in the check samples are from 6 ppb to 4.01 ppm Au, 0.13 to 22 ppm Ag,
and 472 ppm to 3.06% Cu.
The check samples from Teherán (R00622 to R00625) have grades of 3.17 to 4.01 g/t Au, 2.2 to
22.0 g/t Ag, 0.4 to 3.1% Cu and 0.3 to 2.4 ppm Mo which are similar to the Cordoba Minerals
samples (252465 and 252466 at Jn17) which returned grades of 2.70 to 4.51 g/t Au, 6.2 to 9.2 g/t
Ag, 2.9 to 3.9% Cu and 1 to 2 ppm Mo.
The check samples from Montiel (R00628 to R00630) have grades of 0.21 to 3.1 g/t Au, 0.44 to
4.68 g/t Ag, 0.33 to 0.46% Cu and 1.25 to 3.27 ppm Mo, which are similar to higher than the
Cordoba Minerals samples (Jc1-3) which grade 0.39 to 0.52 g/t Au, <0.2 to 0.8 g/t Ag, 0.14 to
0.24% Cu and <1 ppm Mo.
45
S. Redwood
26 July 2011
Sample
Number
UTM
Easting
UTM
Northing
UTM
Altitude
Location
Description
Sample
Type
R00621
420826
85486
171
Road cut.
Basalt, minor veinlets quartz, kaolinite.
Disseminated pyrite.
Chip
R00622
421298
856855
154
Teheran Mine,
North Pit, N end.
Diorite porphyry, magnetite-kaolinite
alteration, veinlets quartz A + B. Jarositegoethite oxidation strong.
R00623
421298
856855
154
Teheran Mine,
North Pit, S end.
R00624
421298
856844
197
R00625
421298
856844
197
Sample
Width
(m)
Au ppb
Ag ppm
Cu ppm
Mo ppm
5.0
6
0.13
474.2
4.23
Chip
2.5
4010
2.19
4012
0.75
alteration, veinlets quartz A + B. Jarositegoethite oxidation strong, malachite.
Chip
4.0
3166
22
30600
2.36
Teheran Mine,
South Pit, E end.
alteration, veinlets quartz A + B, relic
chalcopyrite. Malachite.
Chip
4.0
3924
5.79
17300
0.32
Teheran Mine,
South Pit, W end.
alteration, veinlets quartz A + B, relic
chalcopyrite. Malachite.
Chip
5.0
3910
3.91
17300
0.32
0.24
7.3
0.29
845
1.89
6830
516.9
R00626
Blank.
R00627
Standard Oreas 50c. Rec value 845 ppb
Au.
R00628
420577
856864
144
La Montiel Mine
R00629
420133
856851
148
La Montiel Mine
R00630
420577
856864
144
La Montiel Mine
<5
Plagioclase basalt or diorite, magnetitekaolinite alteration. Stockwork quartz
veinlets, minor magnetite, relic pyrite,
strong goethite.
Plagioclase basalt or diorite, magnetitekaolinite alteration. Stockwork quartz
veinlets, minor magnetite, relic pyrite,
strong goethite.
Block of quartz-sericite-goethite,
probable D vein.
Chip
4.0
785
1.18
3271
2.44
Chip
5.0
208
0.44
3835
1.25
3051
4.68
4581
3.27
Grab
Grab
Table 12.1 Sample description and results of check sampling at Córdoba Project.
46
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26 July 2011
13 MINERAL PROCESSING AND METALLURGICAL TESTING
No metallurgical testing has been carried out on the Córdoba Project.
14 MINERAL RESOURCE ESTIMATES
There are no mineral resource estimates for the Córdoba Project that are compliant with the
current CIM standards and definitions required by the Canadian NI 43-101 “Standards for
Disclosure of Mining Projects”.
15 MINERAL RESERVE ESTIMATES
The Córdoba Project is not an advanced project and therefore this section is not applicable.
16 MINING METHODS
17 RECOVERY METHODS
18 PROJECT INFRASTRUCTURE
19 MARKET STUDIES AND CONTRACTS
47
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26 July 2011
20 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR
COMMUNITY IMPACT
Minerales Córdoba have started to carry out social and environmental assessment and have
produced a preliminary report dated 8 August 2011 (Ceballos & Ángel, 2011).
21 CAPITAL AND OPERATING COSTS
22 ECONOMIC ANALYSIS
48
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26 July 2011
23 ADJACENT PROPERTIES
The Cerro Matoso nickel laterite mine and ferronickel smelter is located 25 km northeast of the
Córdoba Project near Montelíbano. The geology of the deposit was described by Gleeson et al.
(2004). It is operated by Cerro Matoso S.A., a subsidiary of BHP-Billiton. Cerro Matoso is the
world’s second largest producer of ferronickel. Mining started in 1980 and the mine has an
estimated current reserve life of 39 years. The process capacity is 50,000 tonnes per year of
nickel in ferronickel form. Total proved and probable ore reserves are 96 Mt at 1.27% Ni (30
June 2010).
The La Guacamaya open pit coal mine owned by Carbones del Caribe S.A., part of the Argos
Group, is located north of Puerto Libertador.
There are several small hard rock and alluvial artisanal gold mines within and adjacent to the
Córdoba project. These are described in Section 7.3. The El Alacrán mine, surrounded by the
Córdoba project, has a historical resource of 13.5 Mt grading 0.85 g/t Au and 0.3% Cu (Vargas,
1998). The mine is currently being explored by private Vancouver-based junior company
Ashmont Resources Corp.
24 OTHER RELEVANT DATA AND INFORMATION
There are no other relevant data and information to be reported.
49
Minerals Inc.
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26 July 2011
25 INTERPRETATION AND CONCLUSIONS
The Córdoba Project is an early stage, district scale exploration project for porphyry Cu-Au-Mo,
epithermal Au, and possibly IOCG Cu-Au deposits. Preliminary observations and sampling of
artisanal mine workings at Montiel and Teherán show porphyry style mineralization with
significant grades of Au and Cu associated with a well developed stockwork of quartz veinlets.
The identification of porphyry style mineralization in the Córdoba Project is considered to be
highly encouraging and it is interpreted that Córdoba lies on the northern continuation of the
highly prospective Middle Cauca gold belt, host to the La Colosa porphyry deposit (12.4 Moz
gold), the Marmato epithermal deposit (9.8 oz gold), and the Cerro Vetas porphyry deposit (3.7
Moz gold and 0.46 Mt copper).
The Córdoba Project is at too early a stage of exploration to make predictions about the possible
tonnes and grade of the deposit(s).
The author concludes that the Córdoba Project has potential for the discovery of one or more
bulk mineable gold and copper deposits, and that further exploration is warranted to test the
economic potential.
50
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26 July 2011
26 RECOMMENDATIONS
A two stage exploration program is recommended for the Córdoba Project. Stage 1 comprises:
a) district scale exploration by an airborne magnetic and radiometric survey, obtaining and
interpreting a high resolution satellite image and DTM, and stream sediment sampling and
reconnaissance sampling and prospecting, and b) systematic channel sampling and geological
mapping of the Montiel-Teherán prospect. The estimated costs for the Stage 1 program are
US$900,000 and the estimated time to carry out the program is six months. The estimated costs
are given in Table 26.1.
Item
Aeromagnetic and radiometric survey
High resolution satellite image and DTM
District scale stream sediment sampling
District scale reconnaissance sampling and prospecting
Channel sampling and mapping Montiel-Teherán
General & administration
Total
US$
250,000
100,000
100,000
50,000
200,000
200,000
900,000
The Stage 2 program comprises a) an initial phase of diamond drilling on the Montiel-Teherán
target, comprising 20 holes of 300 m each for a total of 6,000 m, with the hole locations to be
defined by the Stage 1 program; b) systematic mapping and sampling of other targets defined by
the Stage 1 district scale exploration program; and c) an initial phase of diamond drilling on
other targets as defined by the Stage 1 district scale exploration program, consisting of 20 holes
of 200 m each for a total of 4,000 m. The Stage 2 program is conditional upon positive results
from the Stage 1 program. The estimated costs for the Stage 2 exploration program are US$
3,500,000 and are listed in Table 26.2. The estimated time to carry out the program is six
months.
Item
Diamond drilling 10,000 m, including geology and
assays, at $250 per meter.
Drilling access and permits.
Detailed sampling and mapping of two other targets
General and administration.
Total
US$
2,500,000
333,300
333,400
333,300
3,500,000
The total cost of the Stage 1 and Stage 2 exploration programs is US$ 4,400,000 and the
estimated time to completion is 12 months.
51
Minerals Inc.
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26 July 2011
For both the Stage 1 and 2 programs it is recommended that a comprehensive QA-QC program
that meets current industry standards is used.
52
Minerals Inc.
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26 July 2011
27 REFERENCES
Ceballos Espinosa, D. & Ángel, M., 2011. Cordoba Project Social and Environmental
Assessment. Internal report by Minerales Cordoba S.A.S., Department of Social and
Environmental Management, 8 August 2011, 43 p.
Cediel, F., Shaw, R. P. & Cáceres, C., 2003. Tectonic Assembly of the Northern Andean Block.
In: Bartolini, C., Buffler, R. T. & Blickwede, J., eds, The Circum-Gulf of Mexico and the
Caribbean: Hydrocarbon habitats, basin formation, and plate tectonics. American
Association of Petroleum Geologists Memoir 79, p. 815-848.
Cediel, F. & Cáceres, C., 2000. Geological Map of Colombia. Bogotá, Colombia, Geotec Ltda,
3rd edition. 7 thematic maps at 1:1,000,000 scale.
Corriveau, L., 2007. Iron Oxide Copper-Gold (±Ag±Nb±P±REE±U) Deposits: a Canadian
Perspective. In Goodfellow, W.D., ed., Mineral Deposits of Canada: A Synthesis of
Major Deposit Types, District Metallogeny, the Evolution of Geological Provinces, and
Exploration Methods: Geological Association of Canada, Mineral Deposits Division,
Special Publication No. 5, 1068 p, p. 307-328.
Emmons, W.H., 1937. Gold Deposits of the World. New York & London, McGraw-Hill Book
Company, Inc., 562 p.
Gleeson, S.A., Herrington, R.J., Durango, J., Velásquez, C.A. & Koll, G., 2004. The Mineralogy
and Geochemistry of the Cerro Matoso S.A. Ni Laterite Deposit, Montelíbano, Colombia.
Economic Geology, vol. 99, p. 1197-1213.
Gonzalez, H. & Londoño, A.C., 2003. Geologia de las planchas 129 Cañasgordas y 145 Urrao,
Escala 1:100,000, Memoria Explicativa. INGEOMINAS, 119 p.
Hitzman, M.W., Oreskes, N. & Einaudi, M.T., 1992. Geological characteristics and tectonic
setting of Proterozoic iron oxide (Cu-U-Au-REE) deposits. Precambrian Research, vol.
58, p. 241-287.
Montgomery, M., 2010. Amended Independent Resource Report. Cerro Vetas Prospect, Titiribi
Project, Antioquia, Colombia. NI 43‐101 technical report by Geosure Exploration &
Mining Solutions Pty Ltd for MKM Resources Limited (now Sunward Resources Ltd),
28 February 2010, 90 p.
Parsons, B., 2011. Mineral Resource Estimate of Marmato Project, Colombia, 6 January 2011.
Report by SRK Consulting (UK) Ltd., Cardiff, UK for Medoro Resources Ltd., Toronto,
February 2011, 158 p.
Restrepo, V., 1952. Estudio sobre las minas de oro y plata de Colombia. Bogota, Banco de la
Republica, 295 p, 4th edition (1st edition 1885).
53
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26 July 2011
Shaw, R. P., 2000. Gold mineralisation in the northern Andes, magmatic setting vs metallogeny.
XI International Mining Congress, Bogotá, Colombia, October 2000 Technical Abstracts.
Sillitoe, R.H., 2003. Iron oxide-copper-gold deposits: an Andean view. Mineralium Deposita,
vol. 38, p. 787-812.
Sillitoe, R. H., 2010. Porphyry Copper Systems. Economic Geology, vol. 105, p. 3-41.
Sillitoe, R. H., Jaramillo, L., Damon, P. E., Shafiqullah, M. & Escovar, R., 1982. Setting,
Characteristics, and Age of the Andean Porphyry Copper Belt in Colombia. Economic
Geology, vol. 77, p. 1837-1850.
Vargas, H., 1998. Reservas y potencial en el proyecto El Alacrán San Juan de Asis, Cordoba,
Colombia. Report for Sociedad Minera El Alacran S.O.M., 24 p.
Williams, P.J., Barton, M.D., Johnson, D.A., Fontboté, L., De Haller, A., Mark, G., Olivier,
N.H.S. & Marschik, R., 2005. Iron Oxide Copper-Gold Deposits: Geology, Space-Time
Distribution, and Possible Modes of Origin. Economic Geology 100th Anniversary
Volume, p. 371-405.
54
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28 CERTIFICATE OF AUTHOR
I, Stewart D. Redwood, FIMMM, hereby certify that:
1. I am a Consulting Geologist with address at P.O. Box 0832-1784, World Trade Center,
Panama City, Republic of Panama.
2. I am responsible for the preparation of the technical report titled “NI 43-101 Report for
the Córdoba Project, Department of Córdoba, Colombia” dated 26 July 2011.
3. I graduated from Glasgow University with a First Class Honours Bachelor of Science
degree in Geology in 1982, and from Aberdeen University with a Doctorate in Geology
in 1986.
4. I am a Fellow of The Institute of Materials, Minerals and Mining, Number 47017.
5. I have 30 years experience as a geologist working in mineral exploration, mine site
geology, mineral resource and reserve estimations and feasibility studies on numerous
precious, base and lithophile metal deposits in South and Central America, the Caribbean,
North America, Europe, Africa, Asia and Australia. In particular I have relevant
experience of exploring porphyr and epithermal deposits.
6. 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
organization (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.
7. I have visited the project on 6 and 7 July 2011 for two days.
8. I am the author of all the sections of the technical report titled “NI 43-101 Report for the
Córdoba Project, Department of Córdoba, Colombia” dated 26 July 2011.
9. I am independent of the issuer applying all of the tests in Section 1.4 of NI 43-101.
10. I have had no prior involvement with the property.
11. I have read NI 43-101 and the Technical Report has been prepared in compliance with
that instrument.
12. As of the date of the certificate, to the best of my knowledge, information and belief, the
Technical Report contains all scientific and technical information that is required to be
disclosed to make the technical report not misleading.
13. I consent to the filing of the Technical Report with any stock exchange and other
regulatory authority and any publication by them, including electronic publication in the
company files on their websites accessible by the public, of the Technical Report.
Dated 26 July 2011
“Signed”
Signature of Qualified Person
Stewart D. Redwood
Print Name of Qualified Person
55
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26 July 2011
ANNEX 1: CERTIFICATE OF ANALYSIS OF CHECK SAMPLES
56
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60

ni 43-101 technical report

Transcription

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