National Instrument 43-101 F1 Amended Technical Report on the El Oro Property, Mexico
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NATIONAL INSTRUMENT 43-101 F1 AMENDED TECHNICAL REPORT ON THE EL ORO PROPERTY, MEXICO LOCATED IN EL ORO - TLALPUJAHUA MINING DISTRICTS, STATES OF MEXICO & MICHOACAN, MEXICO UTM Location, (NAD27, Mexico Zone 14) (UTME 363500E – 388000) (UTMN 2197000N – 2185000) PREPARED FOR: CANDENTE GOLD CORP. by Nadia M. Caira, P.Geo. Argonaut Gold Odyssey Inc. Reviewed by Joanne C. Freeze, P.Geo. President & CEO Candente Gold Corp. Effective Date: June 15th, 2013 Issue Date: June 27th, 2013 (Amendment Date: July 17th, 2013) IMPORTANT NOTICE This Report was prepared as a National Instrument 43-101 Amended Technical Report for Candente Gold Corp. (“CDG”) by Nadia Caira of Argonaut Gold Odyssey Inc. (“Argonaut”). The quality of information, conclusions and estimates contained herein is consistent with the level of effort involved in Argonaut’s services, based on: i) information available at the time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions, and qualifications set forth in this Report. This Report is intended for use by CDG. This Report can be filed as a Technical Report with Canadian Securities Regulatory Authorities pursuant to National Instrument 43-101, Standards of Disclosure for Mineral Projects. Except for the purposes legislated under Canadian securities laws, any other uses of this Report by any third party are at that party‘s sole risk. Candente Gold Corp. Nadia Caira, P.Geo. El Oro Property Amended NI 43-101, July, 2013 Argonaut Gold Odyssey Inc. DATE AND SIGNATURE PAGE Effective Date: June 15th, 2013 Issue Date: June 27th, 2013 (Amendment Date: July 17th, 2013) Candente Gold Corp. Nadia Caira, P. Geo. El Oro Property Amended NI 43-101, July, 2013 Argonaut Gold Odyssey Inc. Nadia M. Caira Argonaut Gold Odyssey Inc. 5711 Back Valley Road 100 Mile House, BC, V0K 2E1 Telephone: 250.791.6440 Email: [email protected] CERTIFICATE OF AUTHOR To Accompany the Report entitled: “National Instrument 43-101 F1 Amended Technical Report on the El Oro Property, Mexico” with an effective date of June 15th, 2013, an original issue date of June 27th, 2013 and an amended date of July 17th, 2013. I, Nadia Caira, P. Geo., do hereby certify that: 1. I am the President of Argonaut Gold Odyssey Inc. with an office situated at 5711 Back Valley Road, 100 Mile House, British Colombia, Canada, V0K 2E1; 2. I am a graduate of the University of British Columbia with a Bachelor’s Degree in Geological Sciences obtained in 1981; 3. I am a member in good standing of the Association of Professional Engineers and Geoscientists of British Columbia since 2001 (Reg. 19970); 4. I am a fellow of the Society of Economic Geologists (“SEG”) and a fellow of the Canadian Institute of Mining and Metallurgy (“CIM”); 5. I am a member of the Geological Association of America (“GSA”); 6. I have worked continuously worldwide as a geologist, since my graduation in 1981 including extended tenures as follows: 8 years with the Hunter Dickinson Group as Senior Geologist and Site Manager on several advanced stage delineation projects in British Columbia and Mexico; 7 years with the Newcrest Mining Group, Australia as District Geologist, Southeast Asia with a focus on generative in Indonesia; 4 years as Generative Geologist for Teck Cominco in Central Asia with a focus on Kazakhstan; and since 2001, I have consulted for several junior and major mining companies in Mexico, Greenland, South and Central America, Mainland Asia, Southeast Asia, Central Asia, United States and Canada; 7. I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43- 101) and certify that by reason of my education, affiliation with a professional association (as defined by NI 43-101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI 43-101; 8. I have written the report entitled “National Instrument 43-101 F1 Amended Technical Report on the El Oro Property, Mexico” dated July 17th, 2013, under Argonaut Gold Odyssey Inc.’s consultation company as President. I am responsible for this report in its entirety; 9. I have not had prior involvement with Candente Gold Corp. and the El Oro Project that is the subject of the Technical Report; 10. I state that, as the date of the certificate, to the best of my qualified 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 have no personal knowledge, as of the date of this certificate, of any material fact or material change which is not reflected in this Technical Report; 12. I am independent of the issuer as defined in section 1.5 of NI 43-101; 13. I have read the National Instrument NI 43-101 and the June 30th, 2011 Form 43-101F1, and the Technical Report has been prepared in compliance with that instrument and form. This 17th day of July, 2013 Original signed and sealed Signed for “Nadia Caira” Nadia Caira, P. Geo. President of Argonaut Gold Odyssey Inc. TABLE OF CONTENTS 1. SUMMARY………………………………………………………………………………... …...1-6 2. INTRODUCTION…………………………………………………………………………. …...6-9 2.1 TERMS OF REFERENCE……………………………………………………………...6-7 2.2 SOURCES OF INFORMATION…………………………………………………….....7-8 2.3 GLOSSARY AND ABBREVIATIONS OF TERMS…………………………………..8-9 3. RELIANCE ON OTHER EXPERTS…………………………………………………………..9-10 4. PROPERTY DESCRIPTION AND LOCATION…………………………………………….11-23 4.1 EL ORO PROPERTY LOCATION………………………………………………….11-12 4.2 PROPERTY DESCRIPTION AND TENURE………………………………………12-14 4.3 MINERAL RIGHTS, OBLIGATIONS AND SURFACE MINING FEES………….14-16 4.4 PROPERTY LEGAL STATUS………………………………………………………….17 4.5 PROPERTY SURFACE RIGHTS………………………………………………….........17 4.6 MINERALIZED ZONES, MINE WORKINGS AND TAILINGS………………….17-18 4.7 ROYALITES AND OTHER PAYMENTS………………………………………….......19 4.8 ENVIRONMENTAL LIABILITIES…………………………………………………19-20 4.9 PERMITTING………………………………………………………………………..20-21 4.10 EXPLORATION AND EXPLOITATION WORK REPORTING…………………..21-22 4.11 MINING CLAIM ACQUISITION VIA THE SWEEPSTAKE PROCESS……………..22 4.12 CANCELLATION OF A MINING CLAIM IN MEXICO……………………………...23 5. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY …………………………………………….23-24 5.1 ACCESS……………………………………………………………………………........23 5.2 PHYSIOGRAPHY, CLIMATE AND VEGETATION…………………………….........24 5.3 LOCAL RESOURCES AND INFRASTRUCTURE………………………………........24 6. HISTORY……………………………………………………………………………………..24-55 6.1 EL ORO PROPERTY HISTORY……………………………………………………24-36 6.2 HISTORIC DRILLING……………………………………........................................36-39 6.3 HISTORIC GEOPHYSICS…………………………………………………………..39-55 6.3.1 Teck 1996 Quantec Gradient TIP (Time Domain IP) Survey……………….40-50 6.3.2 Placer Dome 2001 UTEM-EM and CSAMT Surveys………………………50-51 6.3.3 Placer Dome 2001 Pole-Dipole San Rafael Vein Orientation Survey………51-52 6.3.4 Teck 2007 IP Survey…………………………………………………………….53 6.3.5 Candente 2007 NSAMT Survey……………………………………………..53-55 6.4 HISTORIC CONCEPTUAL ESTIMATES………………………………………….56-71 6.4.1 Historic Conceptual Estimate- Esperanza & El Oro Mines San Rafael……..56-57 6.4.2 Historic Conceptual Estimate for the Mexico Mine Tailings………………..57-59 6.4.3 Historic Mexico Mine Tailings Sampling Programs………………………...59-71 6.5 HISTORIC PRODUCTION………………………………………………………….71-76 6.5.1 Production History at El Oro Mining District (1920-1926)…………………71-72 6.5.2 El Oro Mining & Railway, Esperanza Mines and Mexico Mines…………...72-74 6.5.3 Cia Minera Las Dos Estrellas, S.A…………………………………………..74-76 6.6 HISTORIC MINERAL PROCESSING AND METALLURGICAL TEST…………76-82 6.6.1 Historic Test work…………………………………………………………........76 6.6.2 San Rafael Vein - In-Situ Material……………………………………………...76 6.6.3 San Rafael Vein - San Juan –Carmen Stope Fill Material………………………77 6.6.4 San Rafael Stope Fill Material-Cortaduras Core Sample… ………………...77-78 6.6.5 Mexico Mine Tailings Test Work…………………………………………...78-82 6.7 HISTORIC EXPLORATION TARGET REVIEW………………………………...82-104 6.7.1 Historic El Oro District Exploration Targets………………………………...82-95 6.7.2 Historic Tlalpujahua District Exploration Targets…………………………95-104 7. GEOLOGICAL SETTING AND MINERALIZATION…………………………………...104-119 7.1 REGIONAL LITHOLOGY AND TECTONICS………………………………….104-107 7.2 LOCAL PROPERTY GEOLOGY………………………………………………...107-111 7.3 STRUCTURE ………………………………..........................................................111-115 7.4 MINERALIZATION………………………………………………………………115-119 8. DEPOSIT TYPES 8.1 EPITHERMAL VEIN DEPOSITS………………………………………………...119-121 9. EXPLORATION…………………………………………………………………………...122-144 9.1 INTRODUCTION…………………………………………………………………122-123 9.2 COMPILATION OF HISTORIC DATA………………………………………….123-125 9.3 SIMPLE GRADE BLOCK MODEL ESTIMATE…………………………….......125-128 9.4 SAN RAFAEL REMNANT MINERALIZATION……………………………….129-130 9.5 ASTER/STRUCTURAL INTERPRETATION…………………………………...130-133 9.6 FLUID INCLUSION STUDY……………………………………………………..133-135 9.7 EXPLORATION TARGET AREAS……………………………………………...136-143 9.7.1 Borda (Target 19)………………………………………………………………137 9.7.2 Coronas (Target 14)……………………………………………………………138 9.7.3 Cortaduras and Target 17…………………………………………………138-139 9.7.4 Syenite (Target 15)………………………………………………………..140-141 9.7.5 San Francisco de Los Reyes (Target 27)………………………………………141 9.7.6 North Rafael (Target 11)………………………………………………….141-143 9.7.7 Other Target Areas……………………………………………………………..143 10. DRILLING…………………………………………………………………………………144-147 11. SAMPLE PREPARATION, ANALYSES AND SECURITY……………………………..148-149 12 DATA VERIFICATION…………………………………………………………………..........149 23. ADJACENT PROPERTIES ……………………………………………………………….150-151