Geological Report and Exploration Summary of the Urique Project

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Geological Report and Exploration Summary of the Urique Project GEOLOGICAL REPORT AND EXPLORATION SUMMARY OF THE URIQUE PROJECT Municipality of Urique CHIHUAHUA STATE, MÉXICO December 14, 2011 Submitted by P. C. Gibson, Ph.D., CPG Hacienda del Nopal 6506 Col. Haciendas del Valle Chihuahua, Chihuahua, CP 12317 México Prepared for MAMMOTH CAPITAL CORP. #1610 – 1066 West Hastings Street Vancouver, B.C., Canada, V6E 3X1 In Compliance with NI 43-101 GEOLOGICAL REPORT AND EXPLORATION SUMMARY OF THE URIQUE PROJECT Table of Contents TABLE OF CONTENTS i DESCRIPTION OF TERMS ......................................................................................................... iv CONVERSIONS............................................................................................................................ vi STATEMENT OF QUALIFICATIONS AND CONSENT ......................................................... vii CONSENT ..................................................................................................................................... ix 0.0. Summary............................................................................................................................. 1 1.0 Introduction......................................................................................................................... 4 2.0 Reliance on Other Experts .................................................................................................. 6 3.0 Property Description and Location ..................................................................................... 7 4.0 Accessibility, Climate, Local Resources, Infrastructure and Physiography..................... 12 5.0 History............................................................................................................................... 14 6.0 Geological Setting and Mineralization ............................................................................. 16 8.0 Exploration........................................................................................................................ 21 8.1 Urique South..........................................................................................................23 8.1.1 Urique District (Urique Camp) ..................................................................24 8.1.2 Other Areas................................................................................................37 8.2 Urique North..........................................................................................................38 8.2.1 San Pedro...................................................................................................38 8.2.2 Cuiteco .......................................................................................................47 9.0 Drilling.............................................................................................................................. 51 10.0 Sample Preparation, Analyses and Security ..................................................................... 52 11.0 Data Verification............................................................................................................... 54 12.0 Mineral Processing and Metallurgical Testing ................................................................. 54 13.0 Mineral Resource Estimates ............................................................................................. 54 14.0 Adjacent Properties........................................................................................................... 54 15.0 Other Relevant Data and Information............................................................................... 56 16.0 Interpretation and Conclusions ......................................................................................... 57 17.0 Recommendations............................................................................................................. 58 18.0 References......................................................................................................................... 61 i Technical Report on the Urique Project FIGURES FIGURE 1 LOCATION OF THE URIQUE PROJECT, CHIHUAHUA STATE, MEXICO......................................6 FIGURE 2 LOCATION OF THE URIQUE PROJECT AND OTHER SIGNIFICANT PROJECTS AND MINES IN THE SIERRA MADRE GOLD BELT. .............................................................................................................10 FIGURE 3 URIQUE PROJECT CONCESSION MAP. .............................................................................................11 FIGURE 4 RUGGED TOPOGRAPHY OF THE URIQUE CANYON, CHIHUAHUA STATE, MEXICO.............14 FIGURE 5 GENERALIZED REGIONAL GEOLOGIC MAP, URIQUE PROJECT. GEOLOGY MODIFIED FROM SGM 2004, 2006, 2008..........................................................................................................................17 FIGURE 6 LOCATION OF THE URIQUE NORTH AND SOUTH SECTORS AND EXPLORATION AREAS AT THE URIQUE PROJECT.7.0 DEPOSIT TYPES..............................................................................................20 FIGURE 7 GEOLOGIC AND TARGET MAP, URIQUE SOUTH SECTOR, CHIHUAHUA STATE, MEXICO. .25 FIGURE 8 PANORAMA OF THE URIQUE CAMP, CHIHUAHUA STATE, MEXICO........................................26 FIGURE 9 HISTORIC MINE IN THE URIQUE CAMP ...........................................................................................26 FIGURE 10 GEOLOGIC MAP OF THE ROSARIO AREA SHOWING THREE LARGE CROSSCUTS THAT ACCESSED THE VEIN SYSTEMS, AND GEOPHYSICS TRAVERSES. ....................................................28 FIGURE 11A. GEOLOGIC PLAN MAP OF PART OF THE ROSARIO WORKINGS, SHOWING GOLD ASSAYS. ...........................................................................................................................................................29 FIGURE 12 GEOLOGIC CROSS SECTION, ROSARIO AREA, URIQUE PROJECT, CHIHUAHUA STATE, MEXICO. THE SECTION IS APPROXIMATELY ALONG LINE RL-2 IN FIG 10.....................................31 FIGURE 13 EXAMPLE OF THE NARROW VEINS THAT ARE EXPOSED IN THE ROSARIO WORKINGS..32 FIGURE 14 VERTICAL VEIN PROJECTION OF THE MONO VEIN, ROSARIO MINE, SHOWING LOCATION OF POSSIBLE “CLAVO” OR ORE SHOOT. THE PLAN MAP IN THE LOWER PORTION OF THE FIGURE SHOWS PART OF THE ROSARIO WORKINGS OF FIG. 11. ........................................34 FIGURE 15 COMPARISON OF CROSS SECTION FROM FIG. 11 WITH IP PSEUDOSECTION OVER THE ROSARIO AREA. .............................................................................................................................................36 FIGURE 16 EXPLORATION AREA OF THE, URIQUE NORTH SECTOR, CHIHUAHUA STATE, MEXICO. 41 FIGURE 17 PORTAL OF THE HISTORIC SANGRE DE CRISTO MINE..............................................................42 FIGURE 18 GAMBUSINO WORKINGS IN THE SAN PEDRO AREA OF THE URIQUE PROJECT. ................42 FIGURE 19 QUARTZ VEINING IN DIORITIC INTRUSIVE ROCK, SAN PEDRO AREA, URIQUE PROJECT.43 FIGURE 20 GEOLOGIC MAP, SAN PEDRO AREA, URIQUE PROJECT, CHIHUAHUA STATE, MEXICO. ..44 FIGURE 21 VEIN AND TARGET MAP, SAN PEDRO AREA, URIQUE PROJECT, CHIHUAHUA STATE, MEXICO............................................................................................................................................................45 FIGURE 22 COMPARISON OF GEOLOGIC CROSS SECTION AND IP PSEUDOSECTION ON LINE SPL-3 AT SAN PEDRO. ..............................................................................................................................................46 FIGURE 23 PANORAMA OF THE CUITECO AREA SHOWING STRONG ALTERATION IN THE CENTER OF THE PHOTO. ..............................................................................................................................................47 FIGURE 24 VIEW OF STRONGLY ALTERED VOLCANIC ROCKS IN TRAIN CUT, CUITECO AREA. PHOTO BY ING. CARLOS JURADO. ............................................................................................................48 FIGURE 25 GEOLOGIC MAP, CUITECO AREA, URIQUE PROJECT, CHIHUAHUA STATE, MEXICO. .......49 FIGURE 26 STRONG CLAY-SERICITE PLUS PYRITE ALTERATION WITH STRATIGRAPHIC CONTROL, CUITECO AREA. .............................................................................................................................................50 FIGURE 27 CAVERNOUS AND SACHAROIDAL RESIDUAL SILICA EXHIBITING STRATIGRAPHIC CONTROL, CUITECO AREA. PHOTO BY C. JURADO.............................................................................50 ii Technical Report on the Urique Project TABLES TABLE 1 CONCESSION DATA FOR THE URIQUE PROJECT ..............................................................................9 TABLE 2 SELECTED ASSAY DATA FROM MINES IN THE URIQUE CAMP...................................................27 TABLE 3 SELECTED ASSAY RESULTS FROM VEINS IN THE ROSARIO AREA, URIQUE DISTRICT .......35 TABLE 4 ASSAY RESULTS, LA PATRICIA MINE AREA....................................................................................37 TABLE 5 ASSAY RESULTS, DON ANCHONDO MINE AREA............................................................................37 TABLE 6 ASSAYS FOR SELECTED SAMPLES, SAN PEDRO.............................................................................39 TABLE 7 2008 URIQUE PROJECT DRILL DATA..................................................................................................52 TABLE 8 PROPOSED EXPLORATION BUDGET, URIQUE PROJECT. ..............................................................60 iii Technical Report on the Urique
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