Cisneros Gold Project
1.0 TITLE PAGE
UPDATE ON EXPLORATION CISNEROS GOLD PROJECT
Municipalities of Cisneros, Santo Domingo and Yolombo
Department of Antioquia, Colombia
Latitude: 6º32’35”N Longitude: 75º8’25”W
Submitted to: Antioquia Gold Inc. 300, 840 6th Ave SW Calgary AB T2P3E5
6 December 2010
Prepared by: R.J. Morris, M.Sc., P.Geo. Moose Mountain Technical Services [email protected]
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2.0 TABLE OF CONTENTS 1.0 TITLE PAGE ...... 1 2.0 TABLE OF CONTENTS ...... 2 3.0 SUMMARY ...... 5 4.0 INTRODUCTION ...... 6 5.0 RELIANCE ON OTHER EXPERTS ...... 8 6.0 PROPERTY DESCRIPTION AND LOCATION ...... 9 7.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE & PHYSIOGRAPHY ...... 13 8.0 HISTORY ...... 16 9.0 GEOLOGICAL SETTING ...... 18 9.1 Regional Geology ...... 18 10.0 DEPOSIT TYPES ...... 23 11.0 MINERALIZATION ...... 24 12.0 EXPLORATION ...... 27 13.0 DRILLING ...... 41 14.0 SAMPLING METHOD AND APPROACH ...... 48 15.0 SAMPLE PREPARATION, ANALYSES AND SECURITY ...... 54 15.1 Blank Samples ...... 54 15.2 Lab Sample Duplicates ...... 55 15.3 Field Duplicate Samples ...... 58 15.4 Standard Samples ...... 60 16.0 DATA VERIFICATION ...... 63 17.0 ADJACENT PROPERTIES ...... 64 18.0 MINERAL PROCESSING AND METALLURGICAL TESTING ...... 65 18.1 Preliminary Metallurgical Test One ...... 65 18.2 Preliminary Metallurgical Test Two ...... 67 19.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES...... 77 20.0 OTHER RELEVANT DATA AND INFORMATION ...... 78 21.0 INTERPRETATION AND CONCLUSIONS ...... 79 22.0 RECOMMENDATIONS ...... 81 23.0 REFERENCES ...... 82 24.0 DATE AND SIGNATURE PAGE ...... 83 25.0 ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT PROPERTIES AND PRODUCTION PROPERTIES ...... 85 26.0 ILLUSTRATIONS ...... 86
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LIST OF TABLES
Table 6-1 Concession Areas ...... 9 Table 11-1 Sample Statistics, Minimum Gold, 4ppb (n=240) ...... 24 Table 11-2 Sample Statistics, Medium Gold, 100-700ppb (n=240) ...... 25 Table 11-3 Sample Statistics, High Gold, 1000-216340ppb (n=240) ...... 25 Table 11-4 Cisnero Lithology and Gold (Au-assay) Statistics ...... 26 Table 11-5 Correlation Coefficients (n=1,996) ...... 26 Table 12-1 Univariate Statistics; All Soil Samples ...... 28 Table 12-2 Univariate Statistics; Soil Samples, B Horizon ...... 28 Table 12-3 Univariate Statistics; Soil Samples, B and C Horizon Mixed ...... 28 Table 12-4 Univariate Statistics; Soil Samples, C Horizon ...... 28 Table 12-5 Correlation Coefficient; Soil Samples ...... 29 Table 12-6 Exploration Details on Cisneros Project ...... 30 Table 13-1 Summary of Drilling, Cisneros Project...... 41 Table 14-1 Selected Highlights of 2009/2010 Drilling Results ...... 49 Table 15-1 Blank Samples, Statistics ...... 54 Table 15-2 Duplicate Lab Samples ...... 56 Table 15-3 Duplicate Field Samples ...... 58 Table 15-4 Standard Samples...... 60 Table 18-1 Leach Test Data ...... 65
LIST OF FIGURES
Figure 4-1 Location Map ...... 7 Figure 6-1 Location Map ...... 11 Figure 6-2 Property Map ...... 12 Figure 7-1 Access Map ...... 15 Figure 9-1 Regional Geology ...... 21 Figure 9-2 Structural Features ...... 22 Figure 12-1 Regional Structures, Cisneros Project ...... 31 Figure 12-2 Gold in Soil Samples ...... 32 Figure 12-3 Gold in Soil Samples, Detailed Areas ...... 33 Figure 12-4 Total Magnetics, Detailed Areas ...... 34 Figure 12-5 Magnetics, Horizontal Derivative ...... 35 Figure 12-6 IP Survey, Structures, Guaybito Area ...... 36 Figure 12-7 IP Survey, Structures, La Manuela Area ...... 37 Figure 12-8 Exploration Trenches ...... 38 Figure 12-9 Tunnels ...... 39 Figure 13-1 Guayabito Area Drilling ...... 43 Figure 15-1 Blank Samples ...... 55 Figure 15-2 Duplicate Lab Samples, Au ...... 56 Figure 15-3 Duplicate Lab Samples, Ag ...... 57 Figure 15-4 Duplicate Lab Samples, Cu ...... 57 Figure 15-5 Duplicate Field Samples, Au ...... 58 Figure 15-6 Duplicate Field Samples, Ag ...... 59 Figure 15-7 Duplicate Field Samples, Cu ...... 59 Figure 15-8 Standard CDN-GS-1E ...... 60 Cisneros Gold Project Prepared for Antioquia Gold Inc. Cisneros Project 6 Dec '10.doc Page 3 of 86
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Figure 15-9 Standard GS-20A ...... 61 Figure 15-10 Standard GS-5D ...... 61 Figure 15-11 Standard GS-P8 ...... 62 Figure 18-1 Au Extraction Kinetics ...... 66 Figure 18-2 Ag Extraction Kinetics ...... 66
LIST OF PHOTOS
Photo 7-1 Looking to the East; the Cisneros project covers the hillside on both sides of the small pass in the centre of the photo as well as the main valley area in the forground...... 14 Photo 7-2 Looking to the South; the south and west side of the Guayabito property...... 14 Photo 8-1 Underground at Mina Chapulin ...... 17
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3.0 SUMMARY
The Cisneros project area is interpreted as a mesothermal lode-gold occurrence located near Cisneros in the Department of Antioquia, Colombia. The property is just north of Highway 62 which connects the city of Cisneros to the east and Santiago in the west. It is in the Cisneros Mining Division of Colombia.
The property consists of ten separate parcels of land covering approximately 5,630ha. It was previously held by Am-Ves Resources Inc. (Am-Ves) of Alberta. High American Gold Inc. (now Antioquia Gold Inc.) took over Am-Ves in a reverse takeover in 2008 and in March, 2009 the two companies amalgamated as Antioquia Gold Inc. (Antioquia). A due diligence and a preliminary exploration program were conducted by Am-Ves in 2007 before its takeover by Antioquia.
Since 2007, Antioquia has completed detailed geological mapping, soil sampling, stream sediment sampling, and 67 diamond drillholes, totaling 9,308.21m.
Mr. Robert J. Morris of Moose Mountain Technical Services conducted a site visit and preliminary examination of the property 17 September 2007. From this preliminary visit, an exploration program was proposed for the project and a property of merit report submitted. Morris visited the property again 2-5 February 2010 for an update on exploration to date and to report on the continuing exploration on the property. This report represents an update to 23 September 2010.
Because of the gold mining history in the area and the positive results to date the Cisneros project area is considered a property of merit deserving of further exploration. “Gold at Cisneros occurs in shear zones, up to 16m in true thickness, containing veins and veinlets of quartz and pyrite, with lesser chalcopyrite and traces of molybdenite. Gold is most closely associated with fine grained pyrite. The majority of the veins appear to be of mesothermal origin, however, some quartz textures observed in N 50°E, 80°SE veins in the Tunel Hiro appeared to be of possible chalcedonic composition, suggesting a range in temperature of formation that includes the upper level of the epithermal classification. The veins throughout the property can display geochemically anomalous Au, Ag, Cu, Mo, and Bi, suggestive of being peripheral to and above and likely derived from, a porphyry Cu-Mo system at an unknown depth.” Contributed by Robert J. Casaceli; Consulting Geologist, technical expert.
Thirty holes in the Phase one program in 2009 intercepted fifteen veins with gold assays greater than 10g/t over 0.3m to 2.2m core lengths, including one intercept of 216.34g/t Au over 0.7m. As well, a further seven veins were cut with drilling showing gold grades greater than 3g/t over 0.6m to 1.5m core lengths. In 2010, thirty-seven holes have been completed in three areas, testing and extending known vein systems. The 2010 holes produced a further 45 vein intercepts with greater than 10g/t over 0.3m to 11.7m core lengths.
An exploration program consisting of core drilling, ground magnetometer and IP surveys, detailed soils sample programs, and continued mapping and sampling of the overall Cisneros property away from the central core. The budget estimate for proposed work until the end of September 2011 is CAN$4.6 million.
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4.0 INTRODUCTION
Antioquia Gold Inc. (Antioquia) holds the mineral rights to the Cisneros gold properties in the Cisneros area of Antioquia, Colombia, Figure 4-1.
Moose Mountain Technical Services (MMTS) was retained by Antioquia to assist with the evaluation of the property, to recommend an exploration program, and to prepare a Technical Report compliant with NI 43-101 (the Instrument) and Form 43-101F1. This report represents an exploration update to the property of merit report dated 30 May 2008, and the original exploration update dated 21 May 2010.
Antioquia conducted its due diligence, as well as a preliminary exploration program on the property in 2007. The preliminary exploration included geological mapping and sampling of underground tunnels, pits, and outcrops.
Mr. Robert J. Morris of MMTS conducted a site visit and preliminary examination of the property 17 September 2007. During the site visit, sufficient opportunity was available to examine several tunnels and rock exposures, conduct a general overview of the property, and observe the condition of existing project infrastructure. A second site visit was completed 2-5 February 2010 by the author to review the exploration completed since 2007. Based on his experience, qualifications and review of the site and resulting data, the author, Mr. Morris, is of the opinion that the exploration to date has been conducted in a professional manner and the quality of data and information produced from the efforts meet or exceed acceptable industry standards. The work has been directed and supervised by individuals who are geologists.
In preparing this report, the author hereof has followed methodology and procedures, and exercised due care consistent with the intended level of accuracy, using their professional judgment and reasonable care.
While actively involved in the preparation of the report, MMTS had no direct involvement or responsibility in the collection of the data and information or any role in the execution or direction of the work programs conducted for the project on the property or elsewhere. Much of the data has undergone thorough scrutiny by project staff as well as certain data verification procedures by MMTS (included in Item 16).
Sources of information are listed in the references, Item 23.
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Figure 4-1 Location Map
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5.0 RELIANCE ON OTHER EXPERTS
Moose Mountain Technical Services (MMTS) prepared this report for Antioquia Gold Inc. (Antioquia). The quality of information, conclusions and estimates contained herein are based on industry standards for engineering and evaluation of a mineral project. In preparing this report, the authors hereof have followed methodology and procedures, and exercised due care consistent with the intended level of accuracy, using their professional judgment and reasonable care. Robert J. Morris is responsible for the entire report.
This report is intended to be used by Antioquia, subject to the terms and conditions of its contract with MMTS. MMTS disclaims any liability to any third party in respect of any reliance upon this document without MMTS’s written consent.
Parts of this report, relating to the legal aspects of the ownership of the mineral claims, rights granted by the Government of Colombia and environmental and political issues, have been prepared or arranged by Antioquia. While the contents of those parts have been generally reviewed for reasonableness by the author of this report, for inclusion into this report, the information and reports on which they are based have not been fully audited by the author.
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6.0 PROPERTY DESCRIPTION AND LOCATION
The Cisneros project area consists of ten properties with a total area of approximately 5,630.14ha. The project area is 55km northeast of Medellin and 2km west of Cisneros at approximately 75º08’25”W Longitude and 6º32’35”N Latitude, Figure 6-1. The project area is in the department of Antioquia, and lies partially within the municipalities of Cisneros, Yolumbo and Santo Domingo on the main route that leads from Medellin to the Caribbean coast to the north via the Magdalena River. The properties underlie numerous small villages and towns, including La Quiebra, El Limon, Santiago and Bareno. The properties are held as concessions for gold, silver and related minerals.
Figure 6-2 shows the ten properties which constitute the Cisneros project area. Table 6-1 summarizes the property concession numbers, ownership status and areas plus the names of the most explored prospects in the project area. The concessions are in good standing and a legal opinion from a Colombian based legal firm has confirmed the titles.
Antioquia has 100% ownership of eight of the properties, while it is partnered with Bullet in a 90%/10% joint venture ownership of the two Santo Domingo properties (previously referred to as the Bullet lands).
Surface ownership is held privately by numerous individuals for agricultural use. Colombian law allows for exploration on private lands with notification of the surface landowners and reasonable compensation for surface disturbance caused by exploration activities. To date Antioquia has negotiated access and drill platform locations with the individual land owner to compensate for the disturbance or loss of crop. As the company is using a man portable drill rig there has been little disturbance.
Table 6-1 Concession Areas Area Concession Prospects Ownership Area(ha) Number Status Guayabito L5671005 Guayabito 100% owned 111.85 178.35 L5671005 100% owned 66.5 La Manuela H7175005 100% owned Chapulin, Manuela, T1498005 100% owned 100.46 Guaico L5419005 Chorrera 100% owned Pacho Luis ILD-14271 100% owned 103.72 Troncocito 4655005 Guayabito 100% owned 4.74 Santo Domingo B7342B005 90%/10%JV 5,242.89 B7342005 90%/10%JV Total: 5,630.14
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Certain types of exploration activity require a Land Use Permit, issued by the Colombia Government, prior to conducting the work on a mineral property. At present, the only permit Antioquia needs to have is a water permit to access water. This permit is issued by the environmental authority and covers the current drilling area and is referred to as resolution number 135-0016. If large trees were to be removed, the company would also need a permit, but to date the company has been working in agricultural lands with mainly sugar cane.
The current or future operations of Antioquia, including exploration, development and commencement of production activities on this property require such permits. Other permits governed by laws and regulations pertaining to development, mining, production, taxes, labor standards, occupational health, waste disposal, toxic substances, land use, environmental protection, mine safety and other matters, may be required as the project progresses.
At this time there are no environmental liabilities identified on the property.
Parts of this report, relating to the legal aspects of the ownership of the mineral claims, rights granted by the Government of Colombia and environmental and political issues, have been prepared or arranged by Antioquia. While the contents of those parts have been generally reviewed for reasonableness by the authors of this report, for inclusion into this report, the information and reports on which they are based has not been fully audited by the authors.
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Figure 6-1 Location Map
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Figure 6-2 Property Map
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7.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE & PHYSIOGRAPHY
The Cisneros project area is north and south of the main, paved road (Highway 62) connecting Cisneros (population 7,000) in the east and Santiago towards the west, in the middle of the project area. It is 55km northeast of the city of Medellin (population 3,800,000). There is a none operational narrow gage railway connecting Medellin and Cisneros.
In the southwest corner of the Guayabito property there is an old road that accesses the largest underground workings in the area, though it is used only for foot traffic at this time. As well, there is a good access road in the eastern part of the Guayabito property that accesses the highest part of the property and the north side. There is an access road connecting Highway 62 to the village of El Limon and providing access to the Pacho Luis concession. There are also old roads connecting the Manuela concessions 7175 and 1498 to Highway 62. Access to the northern portion of Santo Domingo concession is via Highway 62 and the road to Bareno which accesses the area near Mina Sur America. The southern portion of the Santo Domingo concessions area is accessed via the road between the village of Santo Domingo & San Roque and Santo Domingo & Santiago. In addition there are numerous walking trails to access farms, artisanal tunnels and fields throughout all the concessions, which serve well as access routes and can be easily upgraded for movement of exploration equipment.
The climate is tropical, though, with elevations ranging between about 1,200m and 1,800m, the temperature is very pleasant.
Transportation service to the area is provided daily by the bus companies Coopetransa and Coonorte from the city of Medellin. There are several hotels in Cisneros. The property is crossed by a three phase power line, though it could be disturbed during electrical storms in the winter season. Water is abundant with all three drainages on the property flowing year round. The project area has a (COMCEL) signal for cellular phones. Internet, fax and scanner services can be obtained in the municipality of Cisneros.
The National Police has permanent presence in the urban area of Cisneros. As well, the Army has a permanent base and does continuous patrols in the region.
The project area is mountainous with many of the western slopes being used as sugar cane plantations. To a lesser extent coffee is grown at higher elevations. The western slopes are gentle, and there are three main drainage gullies trending to the west-southwest. The main river bisecting the project area is the Nus River.
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Photo 7-1 Looking to the East; the Cisneros project covers the hillside on both sides of the small pass in the centre of the photo as well as the main valley area in the forground.
Photo 7-2 Looking to the South; the south and west side of the Guayabito property.
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Figure 7-1 shows the roads between the Guyabito area in the northwest and the Chapulin area in the southeast. The main road, Highway 62, is between the two areas. Station 001 is near DH 09- 05, station 002 is near DH’s 09-01 and 09-02,
Figure 7-1 Access Map
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8.0 HISTORY
The Cisneros project area has a long history of gold mining and exploration with over a hundred years of small scale artisanal mining. To date, at least 62 underground exploration workings have been located in the Cisneros project area, 49 of which are on Antioquia’s properties. Historically, a portion of the western slope of the Guayabito property was hydraulically mined for placer gold. Since that time several shafts and adits have been driven into the hillsides chasing veins carrying gold. Placer operations exist today along the rivers throughout the Santo Domingo land block. There is no official record of the amount of gold production from the Guayabito property or the Cisneros area in general. There have been no resource estimates completed for any of the Cisneros properties.
Am-Ves Resources (Antioquia’s predecessor) completed two phases of exploration on the Guayabito property in 2007: a limited due diligence sampling program as well as a preliminary exploration program of geological mapping and sampling. The due diligence program included the collection of seven samples while 221 samples were collected during the mapping/sampling program (217 samples were analyzed for gold, while four samples were collected for gold and silver extraction testing).
Moose Mountain Technical Services (MMTS) was retained by Am-Ves in 2007 to assist with the evaluation of the Guayabito property, to recommend an exploration program, and to prepare a Technical Report compliant with NI 43-101 (the Instrument) and Form 43-101F1. MMTS recommended a sequence of activities focused on further defining and tracing the surface or near surface expression of mineralized structures, identified (in artisanal mine workings and on surface) during the previous investigations of the property. Detailed geological mapping of known mineralized structures and of the alteration and mineralization was advised. Trenching, mechanized channel sampling (rock saw) and ground geophysics were also recommended to trace and sample structures and their associated mineralized zones. With information from this new exploration a geologic model could be developed and targets for drilling, if warranted, could be defined.
In October, 2008, Antioquia acquired the four La Manuela concessions and it entered into an agreement with Grupo de Bullet to acquire a 90% interest in the two Bullet concessions which Antioquia called the Santo Domingo properties. In March, 2010, the Pacho Luis concession was acquired and in August 2010 the Tonocito block was acquired to fill in a missing sliver of land within the Guayabito prospect area.
Based, in part, on MMTS’s recommendations, Antioquia has completed three phases of geological mapping and geochemical surveying at Cisneros. In all, Antioquia has collected in excess of 3,400 geochemical samples which include rock, soil and stream sediment samples samples. Antioquia has completed geophysical surveys (magnetometer and IP) on three of their prospects and are presently completing ground magnetometer and VLF magnetometer surveys on two of the prospects. A phase one core drilling campaign was completed in December, 2009 (30 drillholes totaling 3,929.76m) and phase two is in progress (as of 23 September 2010, 37 drillholes have been completed, totaling 5,378.45m).
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Photo 8-1 Underground at Mina Chapulin
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9.0 GEOLOGICAL SETTING
9.1 Regional Geology The majority of the Cisneros area is underlain by an intrusive body of granodiorite to quartz diorite composition called the Antioquia Batholith. In the project area, the batholith is cut by two fault systems: one trending northwest, the other trending east-northeast.
Antioquia Batholith (Ksta) The Antioquia batholith covers an area of 7,221 km2 and its satellite bodies, a further 322 km2. In the centre and eastern part of the province, it is characterized as having lithologic homogeneity with little variation from one place to another. The normal facies have a tonalite and granodiorite composition and there are subordinate facies, one felsic and the other gabbroic.
The felsic facies appears mainly in residual blocks near Yalí, between Amalfi and Yolombó, Santo Domingo and the Nare River and between Maceo and La Susana. The rock is medium to coarse crystalline, leucocratic, hypidiomorphic to xenomorphic, and of granodiorite to quartz monzonite composition. This facies is less resistant to weathering than the normal one and therefore it is rare to find fresh rock blocks.
Although the contacts between different facies are not always clear, the petrography and field relations indicate that they are gradational, and in many places the residual blocks of the different facies appear to be intimately mixed.
The shape of the batholith is trapezoidal, unlike other great plutons that extend in the regional tectonic direction, and it is characterized by its petrographic and petrochemical homogeneity. It has discordant contacts with its encasing rocks which have contact aureole development of varied extension and magnitude, in pyroxene hornblende to albite-epidote-hornblende facies. Very little deformation can be attributed to its intrusion; there are no changes in the shape or intensity of the encasing rock’s deformation. The intrusive rock does not deflect the regional folding but instead truncates it and for that reason the pitch on the metamorphic or sedimentary rocks of San Luis varies little if at all as it approaches contact with the intrusive rock.
Alluvium (Qal) Thin non-consolidated deposits of colluvial and alluvial material (Qal) are deposited in gorges and rivers, though some deposits reach great thicknesses and great extent. These deposits are a mixture of drag and loosening or slip material, made up of fragments with different lithologies, which were badly selected and have no stratification. Nevertheless, some well selected horizons can be observed in some elevated alluviums with respect to the present level of some of the main rivers.
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Structural Geology Contributed by Robert J. Casaceli; Consulting Geologist, technical expert.
“There is a series of east-northeast trending structural breaks or faults crossing the Guayabito/La Magdelena/Pacho Luis part of the Cisneros area that may be the primary control of alteration and mineralization on the property. There are potentially four of these structural breaks crossing the property, as defined by stream gullies and the location of old underground exploration workings. The structures are up to one kilometer long (the length of the stream gullies), though the width, depth and continuity is unknown.
After the field review of several key mines and locations, (e.g. Guayabito. Manuela, Chapulin, Rio Nus, Sur America) it was revealed that from a structural geology perspective, the driving mechanisms that control the gold mineralization on the Cisneros property are N 80° E strike-slip faults that early on created en echelon sinistral (left-lateral) dilational jogs that allowed extension and mineralization to occur along N-S to N 20° E normal faults. Later, the principal stress direction was apparently rotated clockwise from NNE-SSW to NW-SE, which in turn allowed a transition to dextral (right-lateral) movement on the same N 80° E strike- slip faults. This dextral movement then created extension and mineral deposition along N 40° to 60° W normal faults that were formed within dilational jogs in the right-lateral sense.
It is not possible with current geologic data from the Cisneros district to know precisely the age of the two episodes of strike-slip faulting, however, from the known age range of intrusions that make-up the Antioquia Batholith, it is assumed that the earliest left-lateral displacements occurred in the Late Cretaceous when the primary axis of compression was oriented NNE-SSW. Then, in the Late Cretaceous to Early Tertiary, complex interactions along a triple junction in the NW corner of the South American plate, allowed oblique NE-directed subduction of the Nazca plate and SW- directed subduction of the Caribbean plate, to cause clockwise rotation of the principal axis of compression to WNW-ESE and the transition to right-lateral displacement on the N 80° E trending strike-slip faults in the Cisneros district. This slightly younger dextral movement created normal fault displacements and mineral deposition along structures that strike in the direction N 40° to 60° W.
Exploration programs to date have emphasized testing the main N 80° E driving structures and the secondary N-S to N 20° E and N35° to 55° E normal structures formed within the earlier sinistral dilational jog systems. These normal structures generally have shown some of the best gold values in current exploration drilling and small-scale vein mining. At the Papi mine, a zone of normal extension showed the development of a rotated block along a listric fracture with reported average grades of approximately 10 g/t Au over 0.6-1.0m. The gold grades throughout the Cisneros district have been reasonably good, with local grades of 5g/t Au to +15 g/t Au, with true vein widths commonly pinching and swelling between 0.1m to ~1.5m, often within a broader structural zone of up to 16m true width.
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The widths of the mineralized N-S to N 20° E veins on normal faults have been much narrower than predicted from the apparent level of development of the sinistral strike- slip system, and observed Riedel shear ridges on some normal fault planes indicate later reverse movement. The reverse movement is most likely indicative of premature closing of the tensional features as a result of the transition to dextral strike-slip movement with the clockwise rotation of the δ₁ primary compressional axis to WNW- ESE and the subsequent opening of normal faults along N 40° to 55° W structures. Preliminary review of these latter structures as depicted in a geologic map of the Guayabito mine indicates a shear zone up to 14.6m true width containing individual narrower veins running up to 40.81 g/t Au. This normal fault zone is interpreted to be part of a NW structural system indicated by the trend in Bi soil anomalies apparent between the Guayabito and Chapulin mines. The main NW shear zone in the Guayabito mine cuts an earlier N 30° E structure that runs from 2.2g/t Au to 7.47 g/t Au over an average width of about 0.6m. It is hoped that normal faults formed within the en echelon dextral strike slip zone have not prematurely pinched-out, allowing for sufficient open space to produce significant volumes of gold mineralization.
At Mina Peñas, a system of N 35° to 60° W veins, veinlets, and breccia dipping 50° to 70° W and at least 4m wide was observed to host quartz, pyrite, and chalcopyrite mineralization with local secondary potassium feldspar being present. This zone was observed to continue 1.5 km to the NW of Mina Peñas, where it was expressed as a zone of sheeted quartz veins over some 12m wide. The breadth of this zone is encouraging, although Au values at the farthest NW extent were reported to be less than 1 g/t.”
Figure 9-1 shows the regional geology of the Cisneros project area, within Antioquia Department, and Figure 9-2 shows the structural geology of the Guayabito, La Manuela, Pacho Luis and the eastern part of the Santo Domingo properties.
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Figure 9-1 Regional Geology
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Figure 9-2 Structural Features
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10.0 DEPOSIT TYPES
The Guayabito occurrences can be classified as a mesothermal lode-gold deposit (Hodgson, 1993).
“Mesothermal gold deposits are mostly quartz-vein-related, gold only deposits with associated carbonatized wall rocks. They occur in low to medium-grade metamorphic terranes of all ages, but only in those that have been intruded by granitoid batholiths. The deposits are characterized by a high gold/silver ratio, great vertical continuity with little vertical zonation, and a broadly syn-tectonic time of emplacement. They are commonly associated with pyrite, arsenopyrite, tourmaline and molybdenite. Mineralization may occur in any rock type and ranges in form from veins, to veinlet systems, to disseminated replacement zones. Most mineralized zones are hosted by and always related to steeply dipping reverse- or oblique-slip brittle-fracture to ductile-shear zones. In mechanically anisotopic host-rock sequences, the shear zones typically are controlled by pre-existing anisotrophies like volcanic flow contacts, dykes and early veins. Shear zone dilation is commonly the result of interference between intersecting sets of shear zones and is part of bulk inhomogeneous flattening in the seismogenic regime of the crust where fluid pressure varied cyclically between sub-lithostatic and supra-lithostatic. At the regional scale, the deposits occur in prograding arc-trench complexes in association with major transcrustal fault zones, linear belts of fluviatile to shallow-marine sedimentary rocks, and small felsic alkali and trondhjemitic intrusions, a co-spatial assemblage of structures and rocks that developed after the main period of accretions-related contractional deformation, but before much of the metamorphism and penetrative fabric. Ore fluids are CO2 rich and have been variously attributed to magmas, metamorphic devolatilization of supracrustal rocks and mantle degassing; most current opinion favours devolatilization of subcreted volcanic and sedimentary rocks, with modification by interaction with the crustal column between the sites of fluid generation and ore deposition”
The exploration target on the Cisneros project area is orogenic lode gold deposits also known as mesothermal vein deposits. Numerous examples of this type of deposit are known throughout the world including the Campbell Red Lake deposits in Ontario, the Bralorne deposit in British Columbia and the Parcoy deposit in Peru. To date, exploration studies have demonstrated that the vein systems on the Cisneros properties have all of the attributes of the orogenic vein gold deposit including, but not limited to association with major structural break, quartz-carbonate vein association, low-sulphide assemblage with pyrite, chloritic and sericitically altered wall rocks.
MMTS believes the deposit type and model is appropriate for the Cisneros properties’ gold occurrences.
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11.0 MINERALIZATION
Contributed by Robert J. Casaceli; Consulting Geologist, technical expert.
“Gold at Cisneros occurs in shear zones, up to 16m in true thickness, containing veins and veinlets of quartz and pyrite, with lesser chalcopyrite and traces of molybdenite. Gold is most closely associated with fine grained pyrite. The majority of the veins appear to be of mesothermal origin, however, some quartz textures observed in N 50°E, 80°SE veins in the Tunel Hiro appeared to be of possible chalcedonic composition, suggesting a range in temperature of formation that includes the upper level of the epithermal classification. The veins throughout the property can display geochemically anomalous Au, Ag, Cu, Mo, and Bi, suggestive of being peripheral to and above and likely derived from, a porphyry Cu-Mo system at an unknown depth.”
The main host rocks in the Cisneros district are granodiorites, dacites, and local dikes of both aplitic and mafic composition that range in age from 90 Ma to 56 Ma (Late Cretaceous to Early Tertiary). The mineralization in the district is generally interpreted to have been derived from these same intrusive events.”
Mineralization was observed by the author during the site visits, in surface and in underground exposures as well as drill core.
In an attempt to show the relationship between various elements, the drillhole assay database was divided into three parts, a minimum gold file, which includes the lowest 240 gold assays (all reporting as less than 4ppb), a median gold file, which includes 240 gold values between 100-700ppb, and a high gold file, which includes 240 gold values between 1000-216340ppb. Tables 11-1 to 11-3 show the statistics for a selection of elements as they relate to gold for each of the data sets. As shown, most elements show a general increase with increasing gold (except for Ba).
Table 11-1 Sample Statistics, Minimum Gold, 4ppb (n=240) Element Minimum Maximum Mean St.Dev. C.V.1 Au (ppb) 4.0 4.0 4.0 0.0 0.0 Ag (ppm) 0.1 36.7 0.3 2.4 6.9 As (ppm) 2.0 18.0 4.0 3.1 0.8 Ba (ppm) 23.0 596.0 195.9 154.4 0.8 Bi(ppm) 4.0 4.0 4.0 0.0 0.0 Cu (ppm) 0.8 366.6 37.7 41.3 1.1 Mo (ppm) 0.5 376.0 4.1 24.9 6.0 Zn (ppm) 17.5 97.2 47.8 15.2 0.3 Hg (ppm) 0.5 6.0 0.7 0.6 0.8 Note: 1. C.V. = Coefficient of Variation (standard deviation/mean). It should be noted that the high CV values (>2) indicate a highly skewed distribution of assay values.
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Table 11-2 Sample Statistics, Medium Gold, 100-700ppb (n=240) Element Minimum Maximum Mean St.Dev. C.V.1 Au (ppb) 100.0 701.0 265.9 161.8 0.6 Ag (ppm) 0.1 39.5 1.8 3.7 2.1 As (ppm) 2.0 18.0 4.1 3.3 0.8 Ba (ppm) 5.0 447.0 91.0 86.5 1.0 Bi(ppm) 1.5 143.0 7.6 13.6 1.8 Cu (ppm) 2.6 10000.0 745.5 1518.0 2.0 Mo (ppm) 0.5 1337.0 28.4 138.3 4.9 Zn (ppm) 14.2 159.1 67.2 23.8 0.4 Hg (ppm) 0.5 4.0 0.6 0.4 0.6 Note: 1. C.V. = Coefficient of Variation (standard deviation/mean). It should be noted that the high CV values (>2) indicate a highly skewed distribution of assay values.
Table 11-3 Sample Statistics, High Gold, 1000-216340ppb (n=240) Element Minimum Maximum Mean St.Dev. C.V.1 Au (ppb) 1008.0 216,340 10,299 22,020 2.1 Ag (ppm) 0.1 99 9 16 1.8 As (ppm) 2.0 144 11 18 1.6 Ba (ppm) 4.0 549 53 63 1.2 Bi(ppm) 0.5 413 25 50 2.0 Cu (ppm) 3.1 10,000 1,320 2,113 1.6 Mo (ppm) 0.5 10,000 55 647 11.7 Zn (ppm) 8.9 152 70 23 0.3 Hg (ppm) 0.5 7 1 1 0.9 Note: 1. C.V. = Coefficient of Variation (standard deviation/mean). It should be noted that the high CV values (>2) indicate a highly skewed distribution of assay values.
Table 11-4 shows the relationship between the various lithologies reported with drilling and the gold content.
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Table 11-4 Cisnero Lithology and Gold (Au-assay) Statistics Lithology Number Minimum Maximum Mean St.Dev. C.V. Breccia 456 4 5000000 19566.55 245990.61 12.6 Cataclasite 22 4 31040 1836.61 6586.56 3.6 Diorite 252 4 21200 159.34 1438.30 9.0 Galt 35 4 4950 256.74 984.46 3.8 Granodiorite 112 4 1378 20.97 130.01 6.2 Hornblendite 85 4 3915 71.18 429.42 6.0 Mylonite 137 4 31270 918.33 3750.81 4.1 Quartzdiorite 1471 4 58780 219.65 2188.61 10.0 (R) Fracturing1 299 4 23600 440.99 2275.26 5.2 Saprolite 213 4 16200 113.06 1115.91 9.9 Tonalite 148 4 17500 216.09 1540.14 7.1 (V) Veins2 47 4 58080 5026.40 11477.30 2.3 Note: 1) RGA is weak fracturing/brecciation with alteration, RGF is crushed/fractured with weak alteration, BCH is strong brecciation, strong alteration. 2) V is veins >10cm, Vn is veins 5-10cm, Vnt is veinlets <5cm.
Table 11-5 shows the correlation coefficients for various elements. As shown the best correlation is between silver and gold, while arsenic/gold and bismuth/gold are good. Iron/gold and lead/gold show good correlation, while copper/gold is moderate. There is very poor to no correlation between molybdenum/gold, antimony/gold, mercury/gold, zinc/gold, potassium/gold, and nickel/gold.
Table 11-5 Correlation Coefficients (n=1,996) Au Au 1.0 Ag 0.71 As 0.60 Ba 0.16 Cu 0.37 Mo 0.0 Sb 0.0 Zn 0.12 Hg 0.0 Bi 0.60 Pb 0.55 Fe 0.53 K 0.03 Ni 0.03
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12.0 EXPLORATION
Exploration on the Cisneros property has consisted of reconnaissance mapping, structural and alteration mapping, geochemical sampling, geophysical surveying and drilling. Table 12-1 lists details of where and when exploration has taken place and what type of exploration has been carried out.
Geological mapping has increased the knowledge of the structures in the area as shown in Figure 12-1. The dominant E/W structure is defined by the orientation of vein systems in outcrop and the continuity of the systems through various drainages and underground workings. The secondary N/S structure is shown generally on a more detailed scale (Item 9, Geological Setting, Structural Setting, discusses the structure in more detail).
Figures 12-2 and 12-3 show gold in soil for the Cisneros project area. Figure 12-2 shows gold in soils from samples spaced at 100m x 100m, while Figure 12-3 shows gold in soils from samples spaced at 50m x 25m. The E/W orientation of anomalies is shown along the southern portion of the drawing, while the secondary N/S orientation is shown in at least three areas.
Contributed by Robert J. Casaceli, Consulting Geologist, technical expert.
“Bismuth in soils shows a distinct and prominent linearity pattern in the direction N 55° W passing through the Colina, Guayabito, and Chapulin mine zones. This is due to the relative insolubility of bismuth in surface and near-surface waters, and the interpreted structure following that approximate azimuth. Gold, and to a lesser degree Cu, show broad areas with anomalous values in soils, but are poor indicators of structure. Silver values are more point source anomalies and appear to be washed-out and dispersed from the soils. Iron shows somewhat broad dispersions in soils and is not useful in determining structure, but coincident anomalies with Au, such as in the NW corner of the Colina zone may be indicative of local areas of auriferous pyrite.”
MMTS completed a review of soil and silt sampling completed to date. Both the soil sampling and stream sediment data will continue to be useful with further development of exploration targets on the property. Tables 12-1 to 12-4 list statistics for selected elements from various soil horizons (samples collected to the end of 2009).
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Table 12-1 Univariate Statistics; All Soil Samples Statistic Au Ag As Cu Mo Bi Ni Zn (ppb) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) Population1 417 417 417 417 417 417 417 417 Minimum2 2.5 0.1 1.0 4.0 0.5 0.1 2.0 16.3 Maximum 4,956.0 1.5 27.0 918.2 28.0 26.0 24.0 134.9 Mean 54.39 0.14 3.74 59.14 1.20 0.34 6.96 58.99 Std. Dev. 326.23 0.14 3.41 97.99 2.03 1.61 2.87 17.74 CV3 6.00 0.96 0.91 1.66 1.70 4.74 0.41 0.30 Note: 1 = The “all” soils sample set includes one sample with a “?” for soil horizon. 2=The values reported as below detection limit have been reset as 2.5ppb for Au, 0.1ppm for Ag, 1.0 for As, 0.5ppm for Mo and 0.1ppm for Bi. 2 = CV is the standard deviation/mean.
Table 12-2 Univariate Statistics; Soil Samples, B Horizon Statistic Au Ag As Cu Mo Bi Ni Zn (ppb) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) Population 73 73 73 73 73 73 73 73 Minimum1 2.5 0.1 1.0 7.3 0.5 0.1 4.0 27.0 Maximum 154.0 0.5 11.0 174.2 9.0 5.0 20.0 134.9 Mean 8.7 0.11 4.8 33.96 0.75 0.17 7.64 64.55 Std. Dev. 23.61 0.06 3.34 24.09 1.17 0.57 2.92 19.01 CV2 2.71 0.51 0.69 0.71 1.57 3.43 0.38 0.29 Note: 1 = The values reported as below detection limit have been reset as 2.5ppb for Au, 0.1ppm for Ag, 1.0 for As, 0.5ppm for Mo and 0.1ppm for Bi. 2 = CV is the standard deviation/mean.
Table 12-3 Univariate Statistics; Soil Samples, B and C Horizon Mixed Statistic Au Ag As Cu Mo Bi Ni Zn (ppb) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) Population 169 169 169 169 169 169 169 169 Minimum1 2.5 0.1 1.0 4.0 0.5 0.1 2.0 23.3 Maximum 4,956.0 1.1 27.0 918.2 28.0 26.0 24.0 119.5 Mean 54.07 0.14 3.63 67.22 1.36 0.42 7.37 60.55 Std. Dev. 385.14 0.12 3.74 120.38 2.86 2.20 3.17 16.50 CV2 7.12 0.85 1.03 1.79 2.10 5.23 0.43 0.27 Note: 1 = The values reported as below detection limit have been reset as 2.5ppb for Au, 0.1ppm for Ag, 1.0 for As, 0.5ppm for Mo and 0.1ppm for Bi. 2 = CV is the standard deviation/mean.
Table 12-4 Univariate Statistics; Soil Samples, C Horizon Statistic Au Ag As Cu Mo Bi Ni Zn (ppb) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) Population 174 174 174 174 174 174 174 174 Minimum1 2.5 0.1 1.0 5.6 0.5 0.1 2.0 16.3 Maximum 3,446.0 1.5 11.0 811.8 4.0 7.0 15.0 129.7 Mean 73.56 0.16 3.34 61.96 1.23 0.34 6.29 55.12 Std. Dev. 332.22 0.17 2.97 91.83 1.14 1.18 2.39 17.64 CV2 4.52 1.07 0.89 1.48 0.92 3.50 0.38 0.32 Note: 1 = The values reported as below detection limit have been reset as 2.5ppb for Au, 0.1ppm for Ag, 1.0 for As, 0.5ppm for Mo and 0.1ppm Bi. 2 = CV is the standard deviation/mean.
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Associations were tested, comparing gold to all of the elements listed, Table 12-5. Generally it can be stated that there is only weak association between gold and the other elements in the soil samples. The best correlation is between gold and silver, with selenium showing the second best correlation, then lead, and arsenic.
Silver is weakly associated with both mercury and selenium, while arsenic and antimony are closely associated.
Table 12-5 Correlation Coefficient; Soil Samples Metal Metal Correlation Coefficient One Two All Soil Samples Au Ag 0.57 Au As 0.05 Au Ba 0.1 Au Ca 0.1 Au Cu 0.24 Au Fe 0.01 Au Mn 0.04 Au Mo 0.04 Au Ni 0.08 Au Pb 0.09 Au Zn 0.02 Au Hg 0.02
Contributed by Robert J. Casaceli, Consulting Geologist, technical expert.
“A review of the Total Field ground magnetic survey data compiled by Claude Robillard in the Guayabito – Colina area shows the presence of numerous structures that are oriented E-W, N-S to N 35° E, and N 40° W, Figure 12-4. Areas of intersection of these interpreted structures provide several targets for vein-type gold mineralization, and several dipole-type anomalies that are coincident with these structural intersections may be indicative of higher concentrations of sulfides. This method can be an especially useful exploration tool when used together with soil geochemistry and structural surface mapping to select drill targets for vein-type gold deposits.”
Figures 12-4 and 12-5 show the results of magnetic surveys across the properties. Figures 12-6 and 12-7 show the surface projection of structures from two IP surveys on the property.
Figure 12-8 shows the exploration trenches on the property, while Figure 12-9 shows the exploration tunnels. In the La Manuela area there are at least ten tunnels, while in the Chapulin area there are at least 18 tunnels.
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Table 12-6 Exploration Details on Cisneros Project Year Company Work Completed Due diligence sampling (seven rock samples, taken to Canada for testing) 2007 Am-Ves Resources Inc.
Am-Ves Resources Inc. Reconnaissance mapping and sampling (73 soil samples) Mapping and sampling of nine underground workings (113 rock samples) 2007 (Colgold, a contract group of Total: 221 samples (186 property samples, 31 QA/QC samples, four metallurgical test samples Geologists from Medellin) Structural and alteration mapping of Guayabito and La Manuela properties Geochemical sampling of Guayabito and La Manuela properties (645 rock samples (+ 43 rock QA/QC samples) 2008 Antioquia Gold Inc. and 271 soil samples (+ 34 soil QA/QC samples)) Reconnaissance mapping and geochemical sampling of Santo Domingo property
Phase 1 Three geophysical surveys (magnetometer and IP) at Guayabito, La Manuela and Chapulin prospects, KTTM Geophysical Contracting from Medellin) 2009 Antioquia Gold Inc. Drilling on Guayabito and La Manuela properties (30 drillholes, 3,929.76m), Energold Drilling Colombia SAS Structural and alteration mapping and sampling of Santo Domingo property (48 rock samples, 300 stream sediment samples)
Phase 2 (in progress) Geophysical surveys (ground magnetometer and VLF magnetometer) of Guayabito and La Manuela 2010 Geochemical (soil) surveys of Guayabito, La Manuela and Guaico prospects (as of 23 S Antioquia Gold Inc. Geochemical (stream sediment) sampling of Santo Domingo 2010) Drilling 37 drillholes, 5,378.45m, Major Drilling (MD Colombia SA)
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Figure 12-1 Regional Structures, Cisneros Project
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Figure 12-2 Gold in Soil Samples
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Figure 12-3 Gold in Soil Samples, Detailed Areas
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Figure 12-4 Total Magnetics, Detailed Areas
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Figure 12-5 Magnetics, Horizontal Derivative
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Figure 12-6 IP Survey, Structures, Guayabito Area
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Figure 12-7 IP Survey, Structures, La Manuela Area
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Figure 12-8 Exploration Trenches
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Figure 12-9 Tunnels
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MMTS believes the exploration to date confirms that the mineralization is in shear zones that developed in two dominant orientations and that there is lateral and vertical continuity of some of these zones.
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13.0 DRILLING
Antioquia has completed Phase one of a drill campaign on the Cisneros project area and is part way through Phase two. Phase 1, September 1, 2009 to December 16, 2009, was drilled by Energold Drilling Corp. of Vancouver using a man-portable core drill. A total of 30 holes for 3,929.76m were drilled. Phase 2, started on March 17 and continued to 23 September 2010 using Major Drilling Group International Inc., again using a man-portable core drill. Phase two continuing at this time, but with a different drilling contractor and drill machine to further test structures to greater depth. The drill targets to date are the Guayabito prospect on the Guayabito property, the Chapulin prospect straddling the western and middle La Manuela property, and La Manuela and Guaico prospects, both on the middle La Manuela property.
The Guayabito prospect is located north of an old artisanal mine and the objective in drilling this prospect is to define and trace the north/south trending structures (one of which can be seen in the Guayabito mine to the south). To date, 22 holes for 4,185.08m have been drilled on this prospect.
The Chapulin prospect is located on the E/W Chapulin structure and the goal in drilling the Chapulin prospect is to verify continuity of the Chapulin structure and identify any associated N/S structures. Thirteen holes totaling 868.95m have been drilled on the Chapulin prospect.
La Manuela prospect, located near the north central part of the middle La Manuela property, is being drilled to verify the continuity of N/S and E/W structures on the prospect. To date five holes have been drilled for a total of 1,100.17m.
The objective of drilling the Guaico/Nus prospect at the southeast corner of the middle La Manuela property is to follow the Guaico structure in a N/S direction and the Guaiquito and Nus structures in an E/W direction. Seven holes totalling 889.29m were drilled in the Guaico prospect area in Phase 1 and Twenty holes totalling approximately 2,264m have been drilled to date in Phase 2, focussing on the Guaico and Nus structures for a total of 3,153m.
Table 13-1 summarizes the drilling on the Cisneros project to date.
Table 13-1 Summary of Drilling, Cisneros Project Number of holes Totals Number of metres Total Year Operator La La (m) Guayabito Chapulin Guaico Guayabito Chapulin Guaico Manuela Manuela 2009 Antioquia 5 13 5 7 30 1070.98 868.95 1100.17 889.29 3929.39 2010* Antioquia 17 20 37 3114.10 2264.35 5378.45 Total 22 13 5 27 67 4185.08 868.95 1100.17 3,153.64 9307.84 *to September 23, 2010
Figure 13-1 shows the drilling in the Guayabito area, with the first structure/vein called the Bolo target. Figure 13-2 is a longitudinal section, looking east, of the Bolo structure/vein with some of the drill intercepts.
Figure 13-3 shows the drilling in the La Manuela area where the targets called the Guaico and Nus structures/veins. Figure 13-4 is a longitudinal section, looking west, of the Guaico structure/vein with some of the drill intercepts, while Figure 13-5 is a longitudinal section, looking north, of the Nus structure/vein. Cisneros Gold Project Prepared for Antioquia Gold Inc. Cisneros Project 6 Dec '10.doc Page 41 of 86
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Figure 13-1 Guayabito Area Drilling
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Figure 13-2 Guayabito, Bolo Structure/Vein, Drill Section
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Figure 13-3 La Manuela Area Drilling
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Figure 13-4 Guaico Structure/Vein, Drill Section
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Figure 13-5 Nus Structure/Vein, Drill Section
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14.0 SAMPLING METHOD AND APPROACH
Geochemical sampling on the Cisneros project has consisted of rock sampling (from old underground workings, road cuts and grab samples), soil sampling and stream sediment sampling. The sample sites were located by GPS. Samples were placed in plastic sample bags, secured and tagged and then transported by the geologists to the SGS preparation lab in Medellin. Prepared samples were shipped to the SGS facility in Lima, Peru for analysis. The samples were assayed using induced coupled plasma (ICP) with a fire assay finish for high-grade gold samples. There are 1,463 rock samples in the database (including QA/QC samples), 1,811 soil samples and 223 stream sediment/pan concentrate samples.
The procedure for core sampling during the 2009-2010 drilling campaign was as follows: core was described, photographed, sawed in half, and one half was returned to its box and stored in a secure facility for future reference. The other half of the core was placed in a plastic sample bag, secured and tagged and transported to the SGS preparation lab in Medellin. Again, prepared samples were shipped to the SGS facility in Lima, Peru for analysis. There are 3,373 drill core samples in the database up to September 23, 2010 (including QA/QC samples)
Table 14-1 lists selected highlights of the drilling to date. At this time it is difficult to determine true thickness of the structures and veins, but, as more knowledge is gained from the drilling, the drill intercepts will become closer to true thickness.
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Table 14-1 Selected Highlights of 2009/2010 Drilling Results Prospect Drillhole No. From To Interval AU (metres) (metres) (metres) (grams/tonne)
Chapulin PC09‐02 18.25 20.43 2.18 1.97 including 19.34 20.43 1.09 3.28 35.05 38.10 3.05 1.79 PC09‐03 97.87 99.11 1.24 4.08 including 98.49 99.11 0.62 7.54 125.42 128.98 3.56 3.58 including 125.77 126.95 1.18 8.55 132.48 132.78 0.30 12.03 Manuela PC10‐14 62.42 67.17 4.75 7.39 including 66.47 67.17 0.70 40.01 PC09‐15 159.20 173.22 14.02 1.05 including 162.63 163.43 0.80 13.01 251.69 268.25 16.56 0.90 including 251.69 252.03 0.34 15.31 including 263.65 264.09 0.44 12.98 PC09‐18 259.47 260.66 1.19 5.02 Guiaco PC09‐20 38.81 45.72 6.91 15.73 including 41.84 42.43 0.59 162.66 including 42.87 44.19 1.32 3.38 PC09‐22 14.70 26.19 11.49 1.31 including 18.30 19.19 0.89 7.15 Guaico PC09‐21 42.67 44.19 1.52 1.58 PC09‐25 25.90 27.43 1.53 1.20 43.14 50.98 7.84 1.61 including 43.14 44.19 1.05 1.99 including 44.19 45.19 1.00 3.36 including 45.19 46.19 1.00 2.95 including 49.24 49.98 0.74 1.38 including 49.98 50.98 1.00 1.61 Guayabito PC09‐26 101.37 103.62 2.25 1.48 165.76 167.27 1.51 3.83 175.89 187.56 11.67 22.56 including 175.89 176.89 1.00 3.34 including 176.89 177.94 1.05 31.27 including 177.94 179.46 1.52 1.54 including 179.46 180.99 1.53 4.02 including 180.99 182.86 1.87 14.50 including 182.86 183.56 0.70 216.34 including 183.56 184.56 1.00 23.92
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Prospect Drillhole No. From To Interval AU (metres) (metres) (metres) (grams/tonne)
including 184.56 185.56 1.00 11.12 including 185.56 186.56 1.00 4.31 191.65 195.64 3.99 6.91 including 194.64 195.64 1.00 26.25 215.89 221.39 5.50 1.39 including 217.39 218.93 1.54 3.64 245.04 249.10 4.06 3.79 including 245.04 245.84 0.80 12.07 including 248.05 249.10 1.05 4.25 250.02 251.70 1.68 1.95 253.95 255.75 1.80 1.56 PC09‐27 87.30 89.39 2.09 1.15 including 87.30 88.39 1.09 1.38 100.65 107.15 5.75 4.61 including 100.65 101.40 0.75 11.79 including 103.15 105.15 2.00 8.07 including 106.15 107.15 1.00 1.23 116.74 123.14 6.40 6.37 including 116.74 118.21 1.47 9.44 including 118.21 118.65 0.44 44.25 including 119.85 120.54 0.69 2.80 including 120.54 122.14 1.60 1.10 including 122.14 123.14 1.00 3.47 PC09‐28 66.87 67.32 0.45 11.13 82.46 84.17 1.71 2.17 97.74 98.34 0.60 3.67 111.66 112.16 0.50 48.87 132.10 136.20 4.10 4.88 including 132.10 133.10 1.00 10.16 including 135.20 136.20 1.00 9.38 PC09‐29 27.43 27.83 0.40 46.59 121.79 124.07 2.28 4.49 169.11 170.11 1.00 3.56 198.67 201.90 3.23 22.05 including 198.67 200.90 2.23 31.04 including 200.90 201.90 1.00 1.99 PC09‐30 130.90 139.20 8.30 5.56 including 130.90 132.41 1.51 1.45 including 132.41 133.95 1.54 1.01 including 135.20 136.20 1.00 3.12 including 136.20 137.20 1.00 37.57
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Prospect Drillhole No. From To Interval AU (metres) (metres) (metres) (grams/tonne)
138.20 139.20 1.00 1.26 170.06 170.98 0.92 6.56 Guaico NS PC10‐01 67.95 72.30 4.35 16.60 including 69.24 70.24 1.00 61.80 PC10‐05 37.80 38.30 0.50 21.20 PC10‐07 57.40 58.04 0.64 4.00 82.90 83.30 0.40 6.10 PC10‐08 114.00 115.50 1.50 2.28 115.50 117.15 1.65 3.05 132.00 136.20 4.20 4.00 including 133.35 135.05 1.70 6.70 including 135.05 136.20 1.15 3.91 154.90 156.00 1.10 4.25 169.58 170.22 0.64 3.92 Nus EW PC10‐10 49.50 63.00 13.50 1.05 including 51.05 51.48 0.43 2.30 including 51.48 52.48 1.00 2.10 including 53.48 54.85 1.37 4.10 PC10‐14 71.40 83.37 11.97 1.80 including 72.60 73.18 0.58 4.06 including 74.10 74.60 0.50 3.37 including 76.80 79.25 2.45 3.72 Guaico NS PC10‐16 47.35 60.80 13.45 4.05 including 47.35 53.60 6.25 8.64 including 48.00 49.20 1.20 19.66 Nus EW PC10‐17 27.80 51.28 23.48 2.07 including 34.00 45.55 11.55 3.96 including 38.50 42.50 4.00 6.78 65.00 66.00 1.00 17.50 67.10 67.60 0.50 4.69 72.90 73.60 0.70 4.95 PC10‐18 34.55 58.50 23.95 2.57 including 42.40 53.60 11.20 5.44 including 44.25 53.60 9.35 6.44 including 45.00 46.50 1.50 7.18 including 49.40 51.00 1.60 16.70 Guayabito PC10‐21 35.80 41.30 5.50 2.80 including 37.15 41.30 4.15 3.64 130.50 139.00 8.50 3.60 including 132.90 134.85 1.95 12.83
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Prospect Drillhole No. From To Interval AU (metres) (metres) (metres) (grams/tonne)
including 130.50 134.85 4.35 6.67 170.20 207.35 37.15 4.45 including 170.20 175.50 5.30 8.99 including 186.25 194.00 7.75 5.92 including 200.10 207.35 7.25 9.27 including 170.20 170.90 0.70 30.30 including 170.90 172.00 1.10 12.03 191.90 192.70 0.80 23.60 including 200.10 201.20 1.10 39.99 PC10‐22 11.25 13.50 2.25 1.44 41.80 42.10 0.30 2.32 61.28 61.58 0.30 6.96 83.00 84.10 1.10 1.25 PC10‐23 17.70 18.00 0.30 4.65 PC10‐24 23.00 23.30 0.30 10.97 76.10 102.00 25.90 1.56 including 76.10 92.25 16.15 2.04 including 76.10 76.40 0.30 28.80 including 81.10 81.55 0.45 14.36 including 87.20 87.80 0.60 17.33 PC10‐25 29.25 30.75 1.50 1.22 35.80 39.42 3.62 5.12 including 37.72 39.42 1.70 14.40 PC10‐26 12.70 13.95 1.25 2.10 17.50 19.25 1.75 2.17 38.75 39.30 0.55 1.44 44.05 44.45 0.40 13.54 110.70 115.77 5.07 9.33 including 114.00 114.95 0.95 38.98 123.15 124.50 1.35 1.40 PC10‐27 95.75 96.85 1.10 7.53 PC10‐28 162.70 163.25 0.55 12.60 PC10‐29 86.45 86.75 0.30 3.35 146.90 147.70 0.80 6.42 180.40 182.65 2.25 3.20 including 180.40 180.70 0.30 16.35 PC10‐33 31.50 34.30 2.80 1.74 including 33.50 34.30 0.80 3.83 PC10‐35 105.85 106.30 0.45 140.36 PC10‐36 106.00 108.65 2.65 3.33
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Prospect Drillhole No. From To Interval AU (metres) (metres) (metres) (grams/tonne)
including 107.95 108.65 0.70 7.29 131.15 131.45 0.30 5.07 PC10‐37 101.95 102.60 0.65 5.94 158.57 159.90 1.33 22.63 203.94 204.65 0.71 5.34 231.75 232.60 0.85 3.01
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15.0 SAMPLE PREPARATION, ANALYSES AND SECURITY
Four exploration programs have been completed on the Cisneros project area and a fifth is underway. The first was a limited due diligence program, the second and third were more thorough geological mapping and sampling programs while the fourth and fifth have been drilling programs along with the geological mapping and sampling programs and geophysical programs.
The due diligence program included collection of seven samples from the property. The samples were collected by Am-Ves personnel and carried to Canada for testing. The three geological mapping and sampling programs included the collection of more than 3,400 samples including four samples which were tested for gold and silver extraction characteristics in Canada. The sample sites were located by GPS and the samples were placed in plastic sample bags, secured and tagged. The samples were transported to the SGS preparation lab in Medellin. From the preparation lab, a small pulverized portion of the original sample was shipped to the SGS laboratory in Lima, Peru for testing. The SGS preparation lab, in Medellin, was visited by the author in 2007. The lab is well organized and clean.
There are 3,373 samples from the drilling to date. Antioquia has run a comprehensive QA/QC program, including blank, lab duplicate samples (preparation duplicates), field duplicate samples, and standards samples.
15.1 Blank Samples A total of 72 blank samples were included in the sample stream as a check for contamination at the laboratory. Table 15-1 provides statistics for the blank samples, while Figure 15-1 shows the results of the analyses. The blank sampling program documents generally consistent low values which can be considered acceptable.
Table 15-1 Blank Samples, Statistics Parameter Au_ppb Ag_ppm Cu_ppm Population 72 72 72 Minimum 4 0.1 0.5 Maximum 8 3 70.9 Mean 4.4 0.2 4.9 Standard 0.97 0.41 9.49 Deviation CV 0.22 2.05 1.94
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Figure 15-1 Blank Samples
15.2 Lab Sample Duplicates
SGS laboratory completed a duplicate assay program, which included one sample for every fifty- one samples being re-assayed, for a total of 70 lab duplicates. The results are shown in Table 15-2 and Figures 15-2, 15-3 and 15-4.
An F-test, the comparison of variances, of the two sample sets for Au, Ag and Cu (Table 15-2, original test to the duplicate test) indicates that the two sets for all three elements represent the same populations (the ratio of the two variances is 1.33 for Au, 0.64 for Ag and 1.02 for Cu, all within the range of 0.065 to 1.68). A Paired t-test, a check on global bias, indicates that the two sets for each element show no bias.
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Table 15-2 Duplicate Lab Samples Parameter Au Au Ag Ag Cu Cu Orig. Dup. Orig. Dup. Orig. Dup. (ppb) (ppb) (ppm) (ppm) (ppm) (ppm) Population 70 70 70 70 70 70 Minimum 4 4 0.1 0.1 2.1 4.8 Maximum 40010 34290 16.1 22.5 2839.1 2784.1 Mean 931.27 839.44 1.05 1.22 208.14 205.88 Standard Deviation 4930.93 4275.88 2.69 3.36 429.08 425.81 CV 5.295 5.094 2.548 2.765 2.061 2.068
1 F-test 1.330 0.639 1.015
Figure 15-2 Duplicate Lab Samples, Au
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Figure 15-3 Duplicate Lab Samples, Ag
Figure 15-4 Duplicate Lab Samples, Cu
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15.3 Field Duplicate Samples
The field sample duplicate system included one duplicate for every twenty-nine samples, for a total of 107 field duplicates. Table 15-3 and Figure 15-5, 15-6 and 15-7 show the results of this work.
Table 15-3 Duplicate Field Samples Parameter Au Au Ag Ag Cu Cu
Orig. Dup. Orig. Dup. Orig. Dup. (ppb) (ppb) (ppm) (ppm) (ppm) (ppm) Population 107 107 107 107 107 107 Minimum 4 4 0.10 0.10 0.40 0.40 Maximum 18,230 61,740 9 45.60 2,041.10 2,283.90 Mean 484 813 0.58 0.90 143 176 Standard 2,458.6 6,017.4 1.2 4.4 253.4 354.7 Deviation CV 5.084 7.399 2.037 4.901 1.776 2.018
1 F-test 0.167 0.071 0.510
Figure 15-5 Duplicate Field Samples, Au
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Figure 15-6 Duplicate Field Samples, Ag
Figure 15-7 Duplicate Field Samples, Cu
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15.4 Standard Samples The standard sampling program included inserting a standard sample for each set of twenty-nine samples. Three different standard samples were used, GS-20A with 21.12g/t Au, GS-5D with 5.06g/t Au, GS-P8 with 0.78g/t Au, and GS-1E with 1.16g/t Au. GS-20A was inserted 28 times, GS-5D was inserted 35 times, GS-P8 was inserted 34 times, while GS-1E was inserted 15 times, for a total standard insertion of 112 samples. Table 15-4 and Figures 15-8, 15-9 and 15-10 present the results of this work.
Table 15-4 Standard Samples Standard Accepted St. Dev. No. Min. Max. Mean CV Au (g/t) (g/t) CDN-GS-1E 1.16 1.004 15 1.143 5.090 1.467 0.684 GS-20A 21.12 0.657 28 20.140 22.660 21.729 0.030 GS-5D 5.06 0.060 35 4.944 5.200 5.108 0.012 GS-P8 0.78 0.022 34 0.773 0.863 0.819 0.027
Figure 15-8 Standard CDN-GS-1E
As shown, there is one sample reporting higher than acceptable values (5.12g/t Au +/- one standard deviation).
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Figure 15-9 Standard GS-20A
As shown, there is one sample reporting a higher than acceptable value and four samples reporting a lower than acceptable value (22.2g/t +/- one standard deviation).
Figure 15-10 Standard GS-5D
As shown, there are three samples reporting higher than acceptable values and three samples reporting lower than acceptable values (5.12g/t Au +/- one standard deviation).
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Figure 15-11 Standard GS-P8
As shown, there are five samples reporting higher than acceptable values and six samples reporting lower than acceptable values (0.820g/t Au +/- one standard deviation).
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16.0 DATA VERIFICATION
MMTS has completed the following verification efforts on the Cisneros project including:
A site visit to the property, 17 September 2007 and again 2-5 February 2010 Examination of numerous adits and shafts in and around the property Examination of drill core and drill sites Collecting rock samples for assay and petrographic work Visit to the SGS preparation lab in Medellin Analyzing assay data
Several of the adits and shafts were visited to examine the rock types and to see how and where the samples were collected. The author believes that the mapping and sample collection was done in a professional manner.
The SGS preparation lab in Medellin was visited and considered well organized and clean.
The drillhole assay data was reviewed and assessed (reported in Items 14 and 15) and found to be acceptable.
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17.0 ADJACENT PROPERTIES
In the Cisneros area there are several gold properties being explored, including the Gramalote property.
The following has been extracted from the B2 Gold Website
The Gramalote property is located approximately 230km northwest of the Colombian capital of Bogota and approximately 80km northeast of Medellin the regional capital of the Department of Antioquia. The Gramalote property is a 49% – 51% B2Gold – AngloGold Ashanti joint venture, with AnglGold as the operator.
The Gramalote property is contained within and underlain by medium- to coarse-grained tonalite and granodiorite of the Cretaceous Antioquian Batholith. Gold mining in the Gramalote area has been carried out since Pre-Colombian times to the present.
The mineralization at the Gramalote property consists of intrusive hosted, structurally controlled quartz and quartz-pyrite veining and stockwork associated with carbonate-sericite, quartz- sericite and potassic alteration.
In 2008, B2Gold completed a total of 30,189 m in 90 diamond drill holes on the Gramalote property, following up previous drilling at the Gramalote property (12,312 m in 43 holes) by AngloGold Ashanti. The 2008 drill program tested the Gramalote Ridge Zone and Trinidad zones as well as several additional targets within the 85,534 hectare property area.
In January 2009, B2Gold announced a National Instrument 43-101 compliant inferred mineral resource estimate for the Gramalote Ridge Zone of 74.375 million tonnes grading 1.00 g/t gold for a total of 2.39 million troy ounces of gold. This resource estimate was calculated using a 0.5 g/t cutoff, within a US$1,000 per ounce gold optimised Whittle pit.
The resource estimate is supported by drilling and a tunnel completed by AngloGold Ashanti in 2007 and drilling completed by B2Gold in 2008. A total of 34,481 m of diamond drilling in 110 drill holes and 441 m of sampling from the underground tunnel support the resource estimate.
In 2009, detailed regional surface exploration work carried out by B2Gold at Gramalote has outlined seven quality drill targets located within four km of the Gramalote Ridge resource. All of these targets have similar geological, alteration and mineralization characteristics to the Gramalote Ridge. B2Gold plans to follow up these targets in 2010 with a view to expanding the resources at Gramalote.
MMTS has not visited the Gramalote property. It appears that the general host rocks in both cases are similar, though more detailed work is required at Cisneros to verify this.
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18.0 MINERAL PROCESSING AND METALLURGICAL TESTING
Two preliminary metallurgical tests have been conducted on rock samples from the Cisneros project area. The first tests were on four samples from the Guayabito tunnel area, while the second tests were on 11 samples from the area. Both tests are summarized below.
18.1 Preliminary Metallurgical Test One
Four samples were collected during the author’s first site visit for preliminary cyanidation testing. The samples included two rock samples from the rock dump (low-grade as the mined material is hand sorted) at the mouth of the Guayabito exploration tunnel and two tailings mud samples from the small processing facility on site.
The rock samples were numbered 41804 and 41805, while the tailings samples were numbered 41809 and 41810. The results of the test work are included in Table 18-1, showing high gold and silver extraction values.
Table 18-1 Leach Test Data Reagents Measured Calculated Extraction Residue Consumption Test Sample Head Head (kg/t) No ID Au Ag Au Ag Au Ag Au Ag (g/t) (g/t) (g/t) (g/t) (%) (%) (g/t) (g/t) NaCN Lime C-1 041804 1.26 1.5 1.40 2.7 93.6 81.5 0.09 0.5 0.41 0.36 C-2 041805 0.82 2.9 1.07 3.0 97.2 67.1 0.03 1.0 0.36 0.41 C-3 041807 11.31 19.5 11.22 18.2 97.5 69.8 0.28 5.5 0.51 7.82 C-4 041808 13.07 19.0 12.49 16.6 96.9 61.5 0.39 6.4 0.50 6.69
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Figure 18-1 Au Extraction Kinetics
Figure 18-2 Ag Extraction Kinetics
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Currently, four bulk samples representing various prospect areas are being processed for metallurgical properties and to provide data for a preliminary flow sheet of the processing requirements to remove the gold and to estimate a recovery rate. Another 12 samples representing a range of rock types and potential ore material are being analysed to determine if the rocks in the Cisneros area are acid generating (referred to as ABA or acid base accounting) or not.
18.2 Preliminary Metallurgical Test Two Extracted from G&T Metallurgical Services Ltd., August 23, 2010, Preliminary Metallurgical Assessment of the Cisneros Project.
1.0 Introduction The Cisneros gold property is a historical mine site located 70 kilometers northeast of Medellin, in the Department of Antioquia, Colombia. The Cisneros project is currently owned by Antioquia Gold Inc., a company currently evaluating the potential to develop a mining operation at this site.
Mr. John Thomas, consultant to Antioquia Gold Inc., requested a proposal from G&T Metallurgical Services Ltd. to conduct a scoping level metallurgical study. The proposal was generated and delivered to Mr. Thomas on March 26, 2010.
Metallurgical testing was to be carried out on four global composite samples from the project. The main objectives of this test program as outlined in the proposal were as follows: -Receive and prepare approximately 56 kilograms of sample for subsequent metallurgical test work.
-Determine the chemical and mineral content of each composite using standard assaying technique and by Bulk Mineral Analysis (BMA) using QEMSCAN.
-Assess the four composites for gold recovery using a Knelson gravity concentration unit, followed by hand panning of the Knelson concentrate.
-Conduct an open circuit batch cleaner test on each of the four composite samples.
A shipment of 11 samples containing approximately 56 kilograms of coarse crushed sample was received at G&T Metallurgical Services Ltd. for use in this test program. The lab work commenced in late July of 2010 and was completed by August, 2010. The following technical brief summarizes only the key technical points of the program. All of the test data generated through the execution of this program can be reviewed in a series of appendices attached to this brief. The appendices are arranged as follows: Appendix I -Sample Origin Appendix II -Flotation Test Data Appendix III -Particle Sizing Data Appendix IV -Special Assay Data Appendix V -Mineralogical Data
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2.0 Ore Characteristics The chemical and mineral content of an ore are key characteristics that influence process performance. Secondary minerals such as copper can influence reagent consumptions and metallurgical performance in a cyanidation process. The chemical and mineral content of the four composite samples are discussed below in greater detail.
2.1 Chemical Content The chemical contents of the four composite samples were determined using standard analytical techniques. The results are displayed below in Table 1.
The chemical content of the four composites was variable. Gold content ranged in value from 3 to 44 g/tonne. Copper in the four composites was detected at between <0.001 and 0.4 percent.
The Sur America Composite contained the lowest amounts of feed gold, copper, silver and iron while the Papi Composite contained the highest feed gold, copper, silver and iron content.
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2.2 Mineral Content The mineral content of the four composite samples was determined by bulk mineral analysis (BMA) using QEMSCAN. The results of this analysis are displayed below in Table 2.
The mineral content of the four composites was also highly variable. Pyrite was the dominant sulphide mineral in all four samples, ranging in value from 2 to 25 percent of the sample mass. The Papi Composite had relatively high levels of chalcocite/covellite. These minerals are soluble by cyanide and will likely increase the cyanide consumption in a leach process.
The silicate minerals in the sample were mainly dominated by Quartz. Considerable amounts of chlorite, muscovite and feldspars were also detected in these composite samples. The Guiaco Composite also contained high levels of amphibole.
3.0 Laboratory Results A series of gravity concentration tests, cyanidation and open circuit batch cleaner flotation tests were conducted on each of the four composites to assess the potential for gold recovery. The results of these tests are discussed in the following subsections.
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3.1 Knelson Gravity Concentrations Test Data Gravity concentration tests, using a laboratory scale Knelson concentrator, followed by panning of the Knelson concentrate, were conducted on each of the four composite samples. These tests were carried out at a nominal primary grind size of 100µm K80. The results are displayed in Figure 1. The following points are of interest:
-All composites except the Sur America Composite are amenable to gravity recovery at a nominal primary grind size of 100µm K80. For these three composites, gold was between 26 and 48 percent recovered to the pan concentrate, grading between 1,194 and 3,680 g/tonne gold. These concentrates contained between 0.3 and 1.1 percent of the feed mass. -For these three composites, it is recommended to examine gold metallurgical performance by conducting a gravity concentration test, followed by cyanidation of the gravity tailings. -The Sur America Composite produced very low gold recoveries to the pan concentrate at 14 percent, grading very low at only 97 g/tonne gold.
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3.2 Cyanidation Test Data Approximately 500 grams of each of the four composites samples, ground to a nominal 100µm K80, was subjected to a 48 hour cyanidation bottle roll test. These tests targeted a cyanide concentration of 1000 ppm initially. The flowsheet schematic along with graphical representation of test results are displayed in Figure 2. The following comments may be of interest when reviewing the data:
-All but one composite responded well to the cyanidation test. Except for Sur America composite, gold was on average 95 percent extracted to the 48 hour solution. Only 64 percent of the Sur America feed gold was extracted to solution after 48 hours. -Cyanide consumption ranged between 0.1 to 6.1 g/tonne. The cyanide * consumption for the Papi Composite was high at 6.1 g/tonne . Due to the high consumption of cyanide, cyanide addition was increased from 1000 to 2000 ppm after 2 hours and again to 3000 ppm after 6 hours. -Lime consumption for the Papi Composite was also higher than the other samples at 1.6 g/tonne. The lime consumption for the other three samples ranged between 0.2 and 0.9 g/tonne. -Further optimization is required to reduce reagent consumptions and investigate the effects of different primary grind sizes.
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3.3 Cleaner Flotation Data A single open circuit batch cleaner test was conducted on each of the four composites to determine the potential for gold recovery by flotation. The results of these tests are illustrated graphically in Figure 3 along with the flowsheet schematic and nominal test conditions. The results indicate the following relevant points:
-All cleaner tests were performed at a nominal primary grind size of 100µm K80, and without regrinding ahead of dilution cleaning. The tests were performed at their natural pH while Potassium Amyl Xanthate (PAX) was used as the collecting agent. -Gold from the feed was between 88 and 97 percent recovered to the final bulk concentrate. Gold recovery from the Guaico and Guayabito composites was the highest at 97 and 96 percent respectively, assaying 578 and 408 g/tonne of gold. Feed mass recovery to the final bulk concentrate was relatively high, ranging from about 4 to 24 percent. -The concentrates contain relatively high values of gold and could possibly be marketed as a separate product. Alternately, these concentrates could potentially be leached with a relatively small cyanidation plant to produce gold bullion.
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4.0 Conclusions and Recommendations Four composites from the Cisneros Project were assessed for gold metallurgical performance using three recovery methods: gravity concentration, cyanide leaching, and flotation. The amount of gold in the four composites was highly variable, ranging between 3 and 44 g/tonne. Sur America contained the lowest amount of gold while Papi contained the highest.
Table 3 below displays a summary of the results obtained by each method, for the four composites tested.
All composites with the exception of the Sur America Composite responded well to gravity concentration. For these samples, gold was between 27 and 48 percent recovered into a pan concentrate grading between 1,194 and 3,680 g/tonne gold.
The same three composites also responded well to cyanidation. After 48 hours of contact time, gold was between 94 and 97 percent extracted to solution following a nominal primary grind size of 100µm K80. The cyanide consumption of the Papi Composite, however, was considerably higher than the Guaico and Guayabito composites.
Given the low head grade of gold in the Sur America composite, the sample responded considerably well to the cleaner flotation process. For this test, gold was 91 percent recovered into a bulk concentrate, assaying 50 g/tonne gold. The gold performance of the remaining three samples was also encouraging. Gold was between 88 and 97 percent recovered into a bulk concentrate, grading between 143 and 578 g/tonne gold. Overall, a variety of processing options remain available for this project based on this initial testing. Likely, the final flowsheet will be a combination of processes to extract gold. Future testing should focus on confirming that representative samples respond the same as the samples tested in this program. Further optimization and development of a final process flowsheet is required.
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19.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES
At this time, there has been no attempt to produce a resource estimate for the Cisneros project area.
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20.0 OTHER RELEVANT DATA AND INFORMATION
MMTS does not believe there is additional technical data available for this project.
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21.0 INTERPRETATION AND CONCLUSIONS
The Cisneros project area is underlain by the Antioquia batholith where exploration for gold is underway in the area by several companies. The property has been explored with three geological mapping and sampling programs and by 67 drillholes to date. The second phase of drilling is in progress. At least sixty historic underground adits and shafts, for gold exploration and production, have been located on or near the properties in the Cisneros project area. The results of drilling to date have been very encouraging with an 11.6m interval reporting 22.6g/t Au, a 6.9m interval with 15.7g/t Au and an 8.3m interval with 5.6g/t Au.
The drilling confirms that the mineralization consists of quartz veins with pyrite, minor chalcopyrite and molybdenum and gold. The deposit model for the occurrence is interpreted as a lode-gold mesothermal.
Contributed by Robert J. Casaceli, Consulting Geologist, technical expert.
“The ground in the Cisneros district appears to have experienced several episodes of generally E-W oriented strike-slip faulting that has created a high degree of fracture permeability in brittle intrusive rocks of the Antioquia Batholith. The most receptive areas for hosting gold mineralization are those areas of extension localized within the en echelon zones of N-S to N 20° E normal faults within left-lateral dilational jogs , and N 40° to 55° W normal faults within younger right-lateral dilational jogs. In addition, the areas of the E-W strike-slip driving structures along and near the nodes of the tensional sigmoidal zones of the jogs, where the normal faults join the strike-slip faults, can also host significant lozenge-shaped pods of mineralization commonly referred to as “huevos” by Colombian miners.
Not only do the en echelon jogs create passive zones of open space to be filled by ore fluids, but the sudden dilation created by the jump in strike-slip movement creates a low pressure area that actually acts to rapidly pump hydrothermal fluids into the extended open-space zones and deposit the distinctive lozenge-shaped pods of mineralization. Mineral deposition can thus occur coincidently with the opening of the dilational jogs, or over time as long as the fractures remain open.
The area of extension that is created in the zone of strike-slip transfer usually results in the formation of a pattern of multiple normal faults, sometimes with secondary listric-type (spoon-shaped) fractures. Moderate to large volumes of mineralization can be deposited in this structural environment.
Although extensional zones of normal faults can be developed along both N-S trends (sinistral jogs) and NW-SE trends (dextral jogs), the N-S faults may have experienced overall lesser extension as the rotation of the principal axis of compression appears to have closed these structures during the time that mineralization was in progress and subsequently opened up the NW-trending normal structures with the transition to dextral strike-slip movement on the E-W driving structures. It is possible that ongoing right-lateral displacement would have been continuous, allowing for broader extension within areas of NW-trending normal faults.
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The Guayabito – Colina area is believed to have the best chance for a +1M oz Au resource, owing to the gold grades reported from the Guayabito mine, the presence of very favorable surface soil geochemistry in Au, Bi, and Fe values, and the presence of both N-S and E-W oriented normal faults contained within en echelon steps along E-W strike-slip faults. Less is known about the Mina Peñas area, but observations of NW-trending structures with sulfide mineralization suggest favorable untested potential exists there as well.
The coincidence of soil anomalies of Au, Bi, and Fe within areas of mapped NW-SE or N-S normal faults in sigmoidal configurations along E-W strike-slip dilational jogs, and the additional supporting evidence of ground magnetic lineaments and dipole anomalies, create excellent drill targets anywhere within the Cisneros district, but particularly in the Guayabito – Colina zone and the – Mina Peñas zone in the southern part of the Santo Domingo concession.”
Cisneros is considered a property of merit deserving of further work.
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22.0 RECOMMENDATIONS
The Cisneros project is a property of merit deserving of further work. The proposed work program is designed to enhance the understanding of the geological system and develop geological models. The Phase Two program is well underway with 37 drillholes completed in 2010.
Continued exploration activities should include additional detailed mapping outward from known mineralized structures and occurrences. Trenching, mechanized channel sampling (rock saw) and ground geophysics should be utilized to trace and sample structures and their associated mineralized zones, where ground cover occurs.
Drilling should continue to follow-up known high-grade intercepts and to test new areas. The drill program should be focused on penetrating the down-dip extensions of mineralized structures identified from the ground geophysics in the vicinity of known gold occurrences and artisanal mine workings.
The following summarizes the proposed budget for the next year, to the end of September 2011.
Mining and Support Equipment $1.1 million
Property Acquisition (surface and Mineral) $1.8 million
Cisneros Exploration $4.6 million Camp and Facilities $250K Geophysics $300K Regional Exploration $190K Drilling $2.3 Million Exploration Tunnel and Metallurgy $1.3 Million Geological Consulting $300K
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23.0 REFERENCES
Casaceli, Robert (2010): Summary Report on Cisneros Field Visit. Antioquia Gold Inc. consulting geologist in house report.
Castaneda, M. (2007): Preliminary exploration, Guayabito property, Cisneros. Am-Ves Resources Inc. in house report.
G&T Metallurgical Services Ltd. (August 2010): Preliminary Metallurgical Assessment of the Cisneros Project, Antioquia Gold Inc.
Hodgson, C.J., (1993): Mesothermal lode-gold deposits, in Kirkham, R.V., Sinclair, W.D., Thorpe, R.I. and Duke, J.M., eds., Mineral Deposit Modeling: GAC Special Paper 40.
Morris, R.J. (2008): Exploration Proposal for the Guayabito Gold Project. Company Report.
Morris, R.J. (2010): Update on Exploration, Cisneros Gold Project. Company Report.
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24.0 DATE AND SIGNATURE PAGE
Certificate of Qualified Person
I, Robert J. Morris, M.Sc., P.Geo., do hereby certify that:
1. I am a Principal of Moose Mountain Technical Services, 6243 Kubinec Road, Fernie BC V0B 1M1. 2. I graduated with a B.Sc. from the University of British Columbia in 1973. 3. I graduated with a M.Sc. from Queen’s University in 1978. 4. I am a member of the Association of Professional Engineers and Geoscientists of B.C. (#18301). 5. I have worked as a geologist for a total of thirty-four years since my graduation from university. 6. My past experience with gold exploration and mining includes work in the Bralorne area, China, Argentina, and Northern Saskatchewan. 7. I have read the definition of “qualified person” set out in NI 43-101 and certify that by reason of my education, affiliation with a professional association and past relevant work experience, I fulfill the requirements to be a “qualified person” as defined in National Policy 43-101.5. 8. I am responsible for the technical report titled “Update on Exploration, Cisneros Gold Project”, dated 30 November 2010. 9. I completed a site visit of the Cisneros Project 17 September 2007 and again 2-5 February 2010. I have had no prior involvement with the Cisneros Project. 10. As of the date of this certificate, to the best of my knowledge, information and belief, the technical report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading. 11. I am independent of the issuer applying all of the tests in section 1.4 of National Instrument 43-101. 12. I have read NI 43-101 and Form 43-101F1, and the Technical Report has been prepared in compliance with that instrument and form.
Date this 6th day of December 2010,
“signed and sealed”
Robert J. Morris, M.Sc., P.Geo.
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Consent of Qualified Person
To: Autorite des Marches Financiers Ontario Securities Commission Manitoba Securities Commission Saskatchewan Financial Services Commission – Securities Division Alberta Securities Commission British Columbia Securities Commission
I, Robert J. Morris, consent to the public filing of the technical report titled “Exploration Update, Cisneros Gold Project”, dated 30 November 2010, and to extracts from, or a summary of, the technical report in the written disclosure being filed, and confirm that I have read the written disclosure being filed and that it fairly and accurately represents the information in the technical report that supports the disclosure.
Dated this 6th day of December 2010
“signed and sealed”
______Signature of Qualified Person
Robert J. Morris, M.Sc., P.Geo. Print Name of Qualified Person
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25.0 ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT PROPERTIES AND PRODUCTION PROPERTIES
No further technical information available.
The property is not in production.
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26.0 ILLUSTRATIONS
All drawings are included with their relevant sections within the report.
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