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Mejillones Phsophate Technical Report

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Mejillones Phsophate Technical Report MEJILLONES PHOSPHATE PROJECT – GEOLOGICAL INTERPRETATION AND EXPLORATION PROPOSAL REPORT - CHILE 13 Esdoring Nook, Highveld C +27 (0) 83 704 0243 Technopark, Centurion, E info@Minrom Gauteng, South Africa Consulting.co.za DATE AND SIGNATURE PAGE Project Name: Mejillones Phosphate Project Title of Report: Mejillones Phosphate Project – Geological Interpretation and Exploration Proposal Report Location: Antofagasta Province, Chile Client: Handa Copper Corporation Effective Date of Report: 12 June 2018 Compiled by: _____________________________________________ JP van den Berg MSc (Exploration Geology) Senior Exploration Geologist – Minrom Consulting ([email protected]) Reviewed by: _____________________________________________ Oscar van Antwerpen MSc (Geology), GDE (Mining), MPhil (Environ, Management) Pri.Sci.Nat Director – Minrom Consulting ([email protected]) I Contents 1 SUMMARY........................................................................................................................................................... IX 2 INTRODUCTION .....................................................................................................................................................1 2.1 TERMS OF REFERENCE - SCOPE OF WORK ...................................................................................................................... 1 2.2 SOURCE OF INFORMATION .......................................................................................................................................... 2 2.3 SITE VISIT ................................................................................................................................................................ 2 2.4 ABBREVIATIONS ....................................................................................................................................................... 2 3 DISCLAIMER - RELIANCE ON OTHER EXPERTS ........................................................................................................3 4 PROPERTY DESCRIPTION AND LOCATION ..............................................................................................................3 4.1 PROPERTY DESCRIPTION ............................................................................................................................................. 3 4.2 PROPERTY LOCATION ................................................................................................................................................. 5 4.3 MINING AND EXPLORATION LICENCE ............................................................................................................................. 5 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY .......................................7 5.1 ACCESSIBILITY .......................................................................................................................................................... 7 5.2 CLIMATE ................................................................................................................................................................. 7 5.3 LOCAL RESOURCES AND INFRASTRUCTURE ...................................................................................................................... 8 5.4 PHYSIOGRAPHY ........................................................................................................................................................ 9 6 HISTORY OF THE MEJILLONES PHOSPHATE DEPOSIT .............................................................................................9 6.1 GENERAL OVERVIEW ................................................................................................................................................. 9 6.1.1 Prior ownership ............................................................................................................................................... 9 6.1.2 Historical exploration work ............................................................................................................................. 9 7 GEOLOGICAL SETTING ......................................................................................................................................... 10 7.1 REGIONAL GEOLOGY ............................................................................................................................................... 10 7.2 LOCAL GEOLOGY ..................................................................................................................................................... 10 7.2.1 Stratigraphy .................................................................................................................................................. 10 7.2.2 Structure........................................................................................................................................................ 11 8 DEPOSIT TYPE AND MINERALISATION GENESIS ................................................................................................... 15 8.1 GLOBAL PHOSPHATE DEPOSITS AND MINERALISATION ENVIRONMENT .............................................................................. 15 8.1.1 Sedimentary Phosphate Minerals ................................................................................................................. 16 8.1.2 Phosphate Deposition and Depositional Systems ......................................................................................... 16 II 8.1.3 Phosphate Lithofacies ................................................................................................................................... 18 8.2 MEJILLONES PHOSPHATE DEPOSIT AND MINERALISATION MODEL ................................................................................... 22 9 EXPLORATION ..................................................................................................................................................... 24 9.1 HISTORICAL EXPLORATION WORK ............................................................................................................................... 24 9.2 RECENT EXPLORATION WORK .................................................................................................................................... 24 9.3 PROPOSED FUTURE EXPLORATION ............................................................................................................................. 26 9.3.1 Geophysics .................................................................................................................................................... 27 9.3.2 Drilling ........................................................................................................................................................... 27 10 DRILLING ............................................................................................................................................................. 30 10.1 PREVIOUS DRILLING ................................................................................................................................................ 30 10.2 RECENT DRILLING ................................................................................................................................................... 30 10.2.1 RC drilling recovery ................................................................................................................................... 41 10.2.2 Reliability of work ..................................................................................................................................... 43 11 SAMPLE PREPARATION, ANALYSIS, AND SECURITY ............................................................................................. 43 11.1 SAMPLE COLLECTION ............................................................................................................................................... 43 11.1.1 Sampling approach and methodology ...................................................................................................... 43 11.2 SAMPLE PREPARATION ............................................................................................................................................. 44 11.2.1 Relation of issuer to sample analysis ........................................................................................................ 44 11.2.2 Sample preparation, assaying, and analytical procedures ....................................................................... 44 11.3 SAMPLE ANALYSES RESULTS ..................................................................................................................................... 45 11.4 FIELD QUALITY ASSURANCE AND QUALITY CONTROL ..................................................................................................... 48 11.5 LABORATORY QUALITY ASSURANCE AND QUALITY CONTROL ........................................................................................... 51 11.6 SECURITY .............................................................................................................................................................. 51 12 DATA VERIFICATION ............................................................................................................................................ 52 12.1 FIELD VERIFICATION ...............................................................................................................................................
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