Technical Report on the Bongará Zinc Projectyambrasbamba Area
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TECHNICAL REPORT ON THE BONGARÁ ZINC PROJECT YAMBRASBAMBA DISTRICT, AMAZONAS REGION, NORTHERN PERU FOR ZINC ONE RESOURCES INC. prepared by: Albert W. (Al) Workman, P.Geo. Senior Geologist, and Vice-President, Operations and John Reddick, P.Geo. Senior Associate Resource Geologist Effective Date: 11 March, 2019 Toronto, Canada Geological and Mining Consultants TABLE OF CONTENTS Page 1. SUMMARY ....................................................................................................................................................... 1 2. INTRODUCTION............................................................................................................................................. 9 2.1 GENERAL ............................................................................................................................................... 9 2.2 TERMS OF REFERENCE..................................................................................................................... 11 2.3 SOURCES OF INFORMATION ........................................................................................................... 11 2.3 UNITS AND CURRENCY .................................................................................................................... 12 2.4 RISK FACTORS .................................................................................................................................... 12 3. RELIANCE ON OTHER EXPERTS ............................................................................................................ 14 4. PROPERTY DESCRIPTION AND LOCATION ........................................................................................ 15 4.1 GENERAL LOCATION ........................................................................................................................ 15 4.2 PROPERTY ADMINISTRATION AND STATUS .............................................................................. 15 4.3 NATURE OF ZINC ONE’S INTEREST ............................................................................................... 20 4.4 ENVIRONMENTAL AND PERMITTING........................................................................................... 20 4.5 SOCIAL OR COMMUNITY IMPACT ................................................................................................. 22 5. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ................................................................................................................................... 23 5.1 ACCESS................................................................................................................................................. 23 5.2 CLIMATE .............................................................................................................................................. 23 5.3 LOCAL RESOURCES .......................................................................................................................... 24 5.4 INFRASTRUCTURE ............................................................................................................................ 24 5.5 AGRICULTURE.................................................................................................................................... 25 5.6 PHYSIOGRAPHY ................................................................................................................................. 25 6. HISTORY ........................................................................................................................................................ 27 6.1 EXPLORATION HISTORY .................................................................................................................. 27 6.2 MINING HISTORY ............................................................................................................................... 30 6.3 HISTORICAL RESOURCES AND RESERVES .................................................................................. 31 7. GEOLOGICAL SETTING AND MINERALIZATION ............................................................................. 38 7.1 REGIONAL GEOLOGY ....................................................................................................................... 38 7.2 GEOLOGY OF THE BONGARÁ AREA ............................................................................................. 38 7.3 MINERALIZATION ............................................................................................................................. 45 7.4 DISCUSSION OF METALLOGENY ................................................................................................... 46 8. DEPOSIT TYPES ........................................................................................................................................... 54 9. EXPLORATION ............................................................................................................................................. 56 10. DRILLING .................................................................................................................................................... 58 11. SAMPLE PREPARATION, ANALYSIS AND SECURITY..................................................................... 60 - i - TABLE OF CONTENTS (continued) Page 12. DATA VERIFICATION .............................................................................................................................. 64 12.1 OVERVIEW ......................................................................................................................................... 64 12.2 GEOLOGY ........................................................................................................................................... 65 12.3 WGM CHECK SAMPLING ................................................................................................................. 71 12.4 DIAMOND DRILLING ........................................................................................................................ 76 12.5 AUDIT OF HISTORICAL AND CURRENT ANALYTICAL DATA ................................................ 76 12.6 EVALUATION OF LABORATORY PERFORMANCE .................................................................... 78 12.7 BONGARÁ HISTORICAL MINERAL RESOURCE ESTIMATE ..................................................... 80 13. MINERAL PROCESSING AND METALLURGICAL TESTING ......................................................... 86 14. MINERAL RESOURCE AND ESTIMATES ............................................................................................ 90 14.1 MINERAL RESOURCES SUMMARY ................................................................................................ 90 14.2 SOFTWARE .......................................................................................................................................... 92 14.3 DATA..................................................................................................................................................... 92 14.3.1 Drill Hole and Surface Sampling Database ............................................................................ 92 14.3.2 Assays, Geological Information and Other Drill Hole and Surface Sampling Data ............... 98 14.3.3 Topography ............................................................................................................................ 98 14.3.4 Sample Recovery .................................................................................................................... 98 14.3.5 Bulk Density ........................................................................................................................... 99 14.4 DATA ANALYSIS .............................................................................................................................. 100 14.4.1 General ................................................................................................................................. 100 14.4.2 Sampling and Sample Lengths ............................................................................................. 100 14.4.3 Sample Bias .......................................................................................................................... 101 14.4.4 Constraining Domains .......................................................................................................... 102 14.5 ASSAYS GRADE DISTRIBUTIONS AND STATISTICS ................................................................ 106 14.5.1 Introduction .......................................................................................................................... 106 14.5.2 Grade Capping ...................................................................................................................... 107 14.5.3 Composites ........................................................................................................................... 107 14.5.4 Variography .......................................................................................................................... 109 14.6 ESTIMATION APPROACH FOR ALL ZONES ................................................................................ 110 14.6.1 Composites ........................................................................................................................... 110 14.6.2 Block Model Domain Codes ...............................................................................................