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Cerro Diamante Property

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Cerro Diamante Property MAGNESIUM PROJECT TECHNICAL REPORT ON THE CERRO DIAMANTE PROPERTY Mendoza Province, Argentina May 2015 Independent Technical Report for El Jarillar Minerals Group Inc. Prepared by Dr. Diana I. Mutti Registered Professional Geologist Dr. Diana I. Mutti Registered Professional Chemical Engineer CH E. Ana M. Celeda El Jarillar Minerals Group Inc. 1134 Leandro N. Alem Ave Buenos Aires, Argentina Tel.: +54.11.4312.4515 – www.cerrrodiamante.com El Jarillar Minerals Group Inc. 1134 Leandro N. Alem Ave Buenos Aires, Argentina Tel.: +54.11.4312.4515 – www.cerrrodiamante.com 2.0 Content 1.0 Cover 2.0 Content .......................................................................................................................................... 1 3.0 Executive Summary ....................................................................................................................... 4 4.0 Introduction ................................................................................................................................... 5 5.0 Property Location and Description................................................................................................ 5 5.1 Property Location ....................................................................................................................... 5 5.2 Property Description .................................................................................................................. 6 5.3 Geological Context ...................................................................................................................... 8 6.0 Argentina Outlook ........................................................................................................................ 11 7.0 Physical Geography of Cerro Diamante Region ............................................................................ 11 7.1 Geomorphology .......................................................................................................................... 11 7.2 Climate ...................................................................................................................................... 12 7.3 Hydrography ............................................................................................................................. 14 7.4 Air Quality ................................................................................................................................ 14 8.0 Geochemistry Applied to Cerro Diamante Property ................................................................... 14 9.0 Deposit Type & Geology ............................................................................................................... 16 9.1 Deposit Type ............................................................................................................................. 16 9.2 Geology ..................................................................................................................................... 17 Paleozoic......................................................................................................................................... 17 Mesozoic ......................................................................................................................................... 18 Cenozoic ......................................................................................................................................... 18 Quaternary .................................................................................................................................... 18 9.3 Geological Hazards ................................................................................................................... 21 Water Erosion Risk ........................................................................................................................ 21 Wind Erosion Risk ......................................................................................................................... 21 Fluvial Erosion Risk ....................................................................................................................... 21 10.0 Bodies of Water in the Exploration Area ................................................................................... 22 10.1 Depth of Ground Water in the Area ........................................................................................ 25 11.0 Description of Sampling Profiles of Cerro Diamante Property .................................................. 26 11.1 Overview .................................................................................................................................. 26 11.2 Geochemistry Exploration ...................................................................................................... 28 12.0 Mineralization ............................................................................................................................ 29 CERRO DIAMANTE - Magnesium Project 1 El Jarillar Minerals Group Inc. 1134 Leandro N. Alem Ave Buenos Aires, Argentina Tel.: +54.11.4312.4515 – www.cerrrodiamante.com 13.0 Exploration ................................................................................................................................. 30 13.1 General................................................................................................................................. 30 13.2 Exploration Program ...........................................................................................................30 14.0 Drilling ....................................................................................................................................... 31 15.0 Results ........................................................................................................................................ 32 16.0 Sampling Method and Approach ............................................................................................... 34 17.0 Sample Preparation, Analysis and Security ............................................................................... 35 17.1 Sample Security ................................................................................................................... 35 17.2 Data Verification ................................................................................................................. 35 18.0 Adjacent Properties .................................................................................................................... 35 19.0 Mineral Processing ..................................................................................................................... 36 19.1 Laboratory Scale Brine Processing ...................................................................................... 36 19.2 Mass Balance ....................................................................................................................... 36 20.0 Other Relevant Data & Information .......................................................................................... 37 21.0 Interpretation & Conclusions ..................................................................................................... 37 22.0 Measured and Indicated Mineral Resources ............................................................................. 38 23.0 Recommendations ..................................................................................................................... 38 24.0 Date and Signature Page ............................................................................................................ 39 Appendix I: Certificate of Analyses ....................................................................................................40 Appendix II: References .................................................................................................................... 43 Appendix III: Certificate of Qualifications ........................................................................................ 44 List of Figures Figure 1 - Cerro Diamante Magnesium Property Location Map ......................................................... 6 Figure 2 – Cerro Diamante Property perimeter .................................................................................. 7 Figures 3 - Site Access ......................................................................................................................... 9 Figure 4 - ENARGAS: Gas distribution and transport system ............................................................ 9 Figure 5 - IAPG - Geographical gas formations ................................................................................. 10 Figure 6 - CAMMESA: Argentinean electrical system ....................................................................... 10 Figure 7 - Argentina location .............................................................................................................. 11 Figure 8 - Datum: WGS84 Zone 19S - Location Map ........................................................................ 12 Figure 9 - Drying wafers in salt crust ................................................................................................. 14 Figure 10 - Chemical Types of water (limits to 5% and 25% concentrations in milliequivalents) .... 15 Figure 11 - ASTER GDEM: Cerro Diamante Property topographic scheme ...................................... 16 Figure 12 – Cerro Diamante Magnesium brine genesis ...................................................................
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