Independent Technical Report on the Mineral Resource Estimates of the Binebase and Bawone Deposits, Sangihe Project, North Sulawesi, Indonesia
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INDEPENDENT TECHNICAL REPORT ON THE MINERAL RESOURCE ESTIMATES OF THE BINEBASE AND BAWONE DEPOSITS, SANGIHE PROJECT, NORTH SULAWESI, INDONESIA Prepared by Mining Associates Pty Ltd for East Asia Minerals Corporation Authors: Ian Taylor, BSc Hons, MAusIMM(CP), MAIG Anthony Woodward, BSc Hons, M.Sc., MAusIMM, MAIG Effective Date: 10 May 2017 Submitted Date: 30 May 2017 Reference: MA1707-1 Mining Associates Pty Ltd Mining Associates Limited ABN 29 106 771 671 Unit A, Level 26, Chinaweal Centre Level 4, 67 St Paul’s Terrace 414-424 Jaffe Road Spring Hill QLD 4004 AUSTRALIA Wan Chai Hong Kong SAR T 61 7 3831 9154 T +852 3125 7536 F 61 7 3831 6754 M +852 6381 7856 W www.miningassociates.com.au Independent Technical Report Sangihe Project, Indonesia East Asia Minerals Corporation TABLE OF CONTENTS 1 SUMMARY .................................................................................................................. 11 1.1 LOCATION & OWNERSHIP ................................................................................................................ 11 1.2 EXPLORATION ................................................................................................................................... 12 1.3 QA/QC ............................................................................................................................................... 12 1.4 GEOLOGY .......................................................................................................................................... 12 1.5 MINERALIZATION .............................................................................................................................. 13 1.6 PREVIOUS MINERAL RESOURCE ESTIMATE ...................................................................................... 13 1.7 MINERAL RESOURCE ESTIMATE ....................................................................................................... 14 1.8 CONCLUSIONS AND RECOMMENDATIONS ...................................................................................... 16 1.9 PROPOSED WORK PROGRAM & BUDGET ......................................................................................... 17 2 INTRODUCTION ........................................................................................................... 18 2.1 ISSUER ............................................................................................................................................... 18 2.2 TERMS OF REFERENCE AND PURPOSE ............................................................................................. 18 2.3 INFORMATION USED ........................................................................................................................ 18 2.4 SITE VISIT BY QUALIFIED PERSONS ................................................................................................... 19 3 RELIANCE ON OTHER EXPERTS ..................................................................................... 19 4 PROPERTY DESCRIPTION AND LOCATION ..................................................................... 20 4.1 TENURE ............................................................................................................................................. 21 4.1.1 Mining Tenure - General ........................................................................................................ 21 4.1.2 Sangihe Project ....................................................................................................................... 23 4.2 PROPERTY OWNERSHIP .................................................................................................................... 25 4.3 ROYALTIES AND OTHER AGREEMENTS ............................................................................................. 25 4.4 ENVIRONMENTAL LIABILITIES........................................................................................................... 25 4.5 PERMITS AND OBLIGATIONS ............................................................................................................ 25 4.5.1 Forestry Permits ..................................................................................................................... 25 4.6 OTHER SIGNIFICANT FACTORS ......................................................................................................... 26 4.6.1 Social & Community ............................................................................................................... 26 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ........................................................................................................... 27 5.1 ACCESS .............................................................................................................................................. 27 5.2 TOPOGRAPHY, ELEVATION AND VEGETATION ................................................................................. 27 Page 2 of 123 Independent Technical Report Sangihe Project, Indonesia East Asia Minerals Corporation 5.3 POPULATION AND INFRASTRUCTURE .............................................................................................. 28 5.4 CLIMATE ............................................................................................................................................ 28 5.5 SURFACE RIGHTS, PERSONNEL, AREA FOR PLANT, PROCESSING & WASTE ..................................... 29 6 HISTORY ...................................................................................................................... 30 6.1 PRIOR OWNERSHIP ........................................................................................................................... 30 6.2 PREVIOUS EXPLORATION .................................................................................................................. 30 6.3 HISTORICAL RESOURCE AND RESERVE ESTIMATES .......................................................................... 31 6.4 HISTORICAL PRODUCTION ................................................................................................................ 31 7 GEOLOGICAL SETTING AND MINERALIZATION .............................................................. 32 7.1 REGIONAL GEOLOGY ........................................................................................................................ 32 7.2 LOCAL GEOLOGY ............................................................................................................................... 33 7.3 PROSPECT GEOLOGY ........................................................................................................................ 35 7.3.1 Structure ................................................................................................................................. 39 7.4 MINERALIZATION .............................................................................................................................. 39 7.4.1 Binebase ................................................................................................................................. 39 7.4.2 Bawone ................................................................................................................................... 40 7.4.3 Alteration ............................................................................................................................... 40 7.4.4 Mineralization Interpretation ................................................................................................ 41 8 DEPOSIT TYPES ............................................................................................................ 42 8.1 CLASSIFICATION ................................................................................................................................ 42 8.1.1 High Sulphidation Gold Model ............................................................................................... 43 9 EXPLORATION ............................................................................................................. 44 9.1 PRE-2007........................................................................................................................................... 44 9.2 2007-2009 ......................................................................................................................................... 44 9.2.1 Geophysics ............................................................................................................................. 45 9.2.2 Petrological Studies ................................................................................................................ 46 9.2.3 Environmental Work .............................................................................................................. 47 9.3 2010-2012 ......................................................................................................................................... 48 9.4 2012-2013 ......................................................................................................................................... 48 9.5 INTERPRETATION OF EXPLORATION INFORMATION........................................................................ 48 10 DRILLING ..................................................................................................................... 50 10.1 TRENCHING ......................................................................................................................................