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Corina Technical Report.Pdf A C A HOWE INTERNATIONAL LIMITED TECHNICAL REPORT ON THE CORINA PROPERTY, SANTA CRUZ PROVINCE, ARGENTINA for SAMCO GOLD LIMITED by ACA HOWE INTERNATIONAL LIMITED Dr D Patrick FIMMM FAusIMM February 28th 2014 Wingrave, UK A C A HOWE INTERNATIONAL LIMITED TABLE OF CONTENTS PAGE SUMMARY……………………………………………………..……………………………….…I 1. INTRODUCTION ........................................................................................................................... 1 2. RELIANCE ON OTHER EXPERTS ............................................................................................ 1 3. PROPERTY DESCRIPTION AND LOCATION ........................................................................ 1 3.1. MINERAL PROPERTY APPLICATION PROCESS IN ARGENTINA .................................. 1 3.2. LOCATION OF THE CORINA AND MERCIA LICENCES .................................................... 2 3.3. CURRENT STATUS OF LICENCES ........................................................................................... 3 3.3.1. CORINA (AND CORINA I) ........................................................................................................... 3 3.3.2. MERCIA .......................................................................................................................................... 6 4. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY .......................................................................................................................... 7 5. HISTORY ........................................................................................................................................ 8 5.1. GRASTA PETROLEO S.A. ........................................................................................................... 8 6. GEOLOGICAL SETTING AND MINERALISATION .............................................................. 9 6.1. REGIONAL GEOLOGY ................................................................................................................ 9 6.2. REGIONAL GEOPHYSICS ........................................................................................................ 11 6.3. LOCAL GEOLOGY ..................................................................................................................... 14 6.3.1. RHYOLITE DOMES .................................................................................................................... 18 6.3.2. GEOLOGY OF THE CERRO DE LA MINA AND CERRO CUBILETE MINERALISED AREAS ........................................................................................................................................... 18 6.4. MINERALISATION ..................................................................................................................... 21 6.4.1. CERRO CUBILETE ..................................................................................................................... 21 6.4.2. CERRO DE LA MINA ................................................................................................................. 23 6.4.3. MINERALISATION ELSEWHERE ON THE LICENCES ..................................................... 24 7. DEPOSIT TYPES ......................................................................................................................... 26 8. EXPLORATION ........................................................................................................................... 27 8.1. EXPLORATION BY SAMCO ..................................................................................................... 30 8.2. ROCK CHIP SAMPLING ........................................................................................................... 30 8.2.1. CERRO CUBILETE ..................................................................................................................... 30 8.2.2. CERRO DE LA MINA ................................................................................................................. 31 8.2.3. OTHER AREAS ............................................................................................................................ 34 8.3. GROUND MAGNETIC SURVEYS ............................................................................................ 43 8.4. DETAILED GEOLOGICAL MAPPING ................................................................................... 49 8.6. TRENCHING AND PITTING ..................................................................................................... 51 8.6.1. CERRO DE LA MINA ................................................................................................................. 51 8.6.2. CERRO CUBILETE ..................................................................................................................... 51 8.6.3. MERCIA EAST ............................................................................................................................. 52 8.7. INDUCED POLARISATION SURVEY (IP) .............................................................................. 56 8.7.1. RESULTS ....................................................................................................................................... 58 8.8. LAG SAMPLING .......................................................................................................................... 62 8.8.1. LAG RESULTS ............................................................................................................................. 62 9. DRILLING ..................................................................................................................................... 67 9.1. DIAMOND DRILLING AT CERRO CUBILETE .................................................................... 67 10. SAMPLING PREPARATION, ANALYSES AND SECURITY ............................................... 84 10.1. ROCK CHIP SAMPLES .............................................................................................................. 84 10.2. LAG SAMPLES ............................................................................................................................ 85 10.3. DRILL CORE SAMPLES ............................................................................................................ 85 11. DATA VERIFICATION ............................................................................................................... 85 12. MINERAL PROCESSING AND METALLURGICAL TESTING.......................................... 85 13. MINERAL RESOURCE ESTIMATES ...................................................................................... 85 14. MINERAL RESERVE ESTIMATES .......................................................................................... 86 15. MINING METHODS .................................................................................................................... 86 16. RECOVERY METHODS ............................................................................................................. 86 17. PROJECT INFRASTRUCTURE ................................................................................................ 86 18. MARKET STUDIES AND CONTRACTS ................................................................................. 86 19. ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT ......................................................................................................................................... 86 20. CAPITAL AND OPERATING COSTS ...................................................................................... 86 A C A HOWE INTERNATIONAL LIMITED 21. ECONOMIC ANALYSIS ............................................................................................................. 86 22. ADJACENT PROPERTIES ......................................................................................................... 87 22.1. CERRO MORO ............................................................................................................................. 87 22.2. AUSTRALGOLD .......................................................................................................................... 88 23. OTHER RELEVANT DATA AND INFORMATION ............................................................... 88 24. INTERPRETATION AND CONCLUSIONS ............................................................................. 88 25. RECOMMENDATIONS .............................................................................................................. 90 25.1. EXPLORATION OF THE CORINA AND MERCIA LICENCES .......................................... 90 25.1.1. PROPOSED PROGRAMME AND BUDGET ........................................................................... 90 25.1.2. PHASE 2 DRILLING ................................................................................................................... 94 26. REFERENCES .............................................................................................................................. 95 27. DATE AND SIGNATURE PAGE ............................................................................................... 97 LIST OF FIGURES FIGURE 1. REGIONAL LOCATION OF THE CORINA AND MERCIA PROJECT AREA ................... 4 FIGURE 2. LOCATION OF THE CORINA AND MERCIA LICENCES ALONG WITH EXPLORATION ZONES ............................................................................................................... 5 FIGURE 3. REGIONAL GEOLOGICAL SETTING OF THE DESEADO
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