Ni 43-101 Independent Technical Report Casuto Project Iv Region Coquimbo, Chile
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NI 43-101 INDEPENDENT TECHNICAL REPORT CASUTO PROJECT IV REGION COQUIMBO, CHILE Centred at UTM PSAD56 Zone 19S 6,484,000mN, 268,000mE Latitude 31°76’S, Longitude 71°44’W Prepared For: Casablanca Mining Ltd. 9880 Magnolia Avenue Santee, California United States 92071 Date: July 4, 2011 Prepared by: Fladgate Exploration Consulting Corporation 195 Park Avenue Thunder Bay, Ontario, Canada P7B 1B9 Michael Thompson, P.Geo Caitlin Jeffs, P.Geo FLADGATE EXPLORATION CONSULTING CORPORATION 195 Park Avenue Thunder Bay, Ontario P7B 1B9 Phone: (807) 345-5380 Fax: (807) 345-1875 Casablanca Mining Ltd. – Casuto Project NI 43-101 Technical Report 1 Table of Contents List of Figures ....................................................................................................... 2 List of Tables ......................................................................................................... 2 List of Appendices ................................................................................................ 2 1 Summary ....................................................................................................... 3 2 Introduction ................................................................................................... 5 2.1 Introduction .......................................................................................................5 2.2 Terms of Reference and Units .......................................................................... 6 2.3 Basis of the Report ............................................................................................8 2.4 Fladgate Qualifications ......................................................................................8 3 Reliance on Other Experts ........................................................................... 9 4 Property Description and Location ........................................................... 10 4.1 Mineral Rights in Chile .................................................................................... 14 4.2 Environmental and Permitting .........................................................................16 5 Accessibility, Local Resources and Infrastructure .................................. 16 6 Climate and Physiography ......................................................................... 17 7 History ......................................................................................................... 18 7.1 Early Exploration History of Casuto (Pre-Twentieth Century) ......................... 18 7.2 Recent Exploration in Casuto .......................................................................... 18 8 Geological Setting ...................................................................................... 19 8.1 Regional Geology ............................................................................................19 8.2 Property Geology ............................................................................................20 9 Deposit Types ............................................................................................. 22 10 Mineralization .............................................................................................. 22 11 Exploration .................................................................................................. 23 11.1 Soil/Till Sampling (May 2010) .........................................................................23 12 Drilling ......................................................................................................... 25 13 Sampling Method and Approach ............................................................... 25 14 Sample Preparation, Analysis and Security ............................................. 26 14.1 CIMM Serena Laboratories ............................................................................. 26 14.2 Results ............................................................................................................26 14.3 Sample Preparation Adequacy ....................................................................... 26 15 Data Verification ......................................................................................... 27 Casablanca Mining Ltd – NI 43-101 Casuto Project 16 Adjacent Properties .................................................................................... 27 17 Mineral Processing and Metallurgical Testing ......................................... 27 18 Mineral Resource and Mineral Reserve Estimates .................................. 27 19 Other Relevant Data and Information ....................................................... 27 20 Interpretations and Conclusions ............................................................... 27 21 Recommendations ...................................................................................... 28 22 References and Literature ......................................................................... 30 23 Date .............................................................................................................. 31 List of Figures Figure 1 - Casuto Project Location Map .................................................................................. 13 Figure 2 - Casuto Project Mineral Concessions ...................................................................... 14 Figure 3 – Vegetation planted on the Casuto Project .............................................................. 17 Figure 4 - Property Geology .................................................................................................... 21 Figure 5 - 2010 Sampling and Volume Estimation .................................................................. 24 Figure 6 - Washing Sample Using Sluice Box ......................................................................... 25 List of Tables Table 1 – Glossary of Terms ..................................................................................................... 6 Table 2 – Units of Measure ....................................................................................................... 7 Table 3 – Casuto Project Mineral Concessions ....................................................................... 11 Table 4 – Results of May 2010 Sampling* .............................................................................. 23 Table 5 - Volume estimated by Consultres Geológicos Asociados ......................................... 23 Table 6 - Budget for Proposed Exploration on Casuto Project ................................................ 29 List of Appendices Appendix I – Photographs of Site…………………………………...………………...At end of the report Appendix II – Certificate of the Author………………………………………………..At end of the report Appendix III – IE-TEC Heavy Particle Concentration Technology………………...At end of the report Page | 2 Casablanca Mining Ltd – NI 43-101 Casuto Project 1 Summary This report was prepared by Fladgate Exploration Consulting Corporation (“Fladgate”) at the request of Zirk Engelbrecht, President of Casablanca Mining Ltd., (“Casablanca” or the “company”). The following report was prepared to provide an NI 43-101 compliant Technical Report and independent overview of the geology and historic exploration on the Casuto Project located in IV Region Coquimbo, Chile and to recommend an exploration program. The Casuto Project is located in IV Region Coquimbo, Choapa Province, Chile. The property is situated 20 km north of the city of Los Vilos, 215 km south of the city of Coquimbo-La Serena and 195 km northwest of the city of Santiago, the capital of Chile. The Casuto Project is readily accessible from the city of Coquimbo-La Serena or the city of Los Vilos. The Casuto Project is comprised of 22 contiguous exploration concessions or “pedimentos” totalling 6,200ha and 9 mining concessions or ‘mensuras’ totalling 900ha. Pedimento exploration concessions are valid for two years from the date of registration and mining concessions are valid forever as long as the annual taxes are paid. Of the mining concessions, 5 are completed mining concessions and 4 are in the process of being finalized. The mining concessions are completely overlapped by the exploration concessions, so the property is 6,200ha in total. The central part of the Casuto Project overlies a clastic sedimentary sequence including feldspathic sandstone, mudstone, sedimentary breccias and conglomerates with intercalations of volcanic and marine limestone beds. The sedimentary sequence is part of the Huentaleuquén Formation of Carboniferous age and can be up to 250m thick. Intrusive rocks of the Coastal Batholith outcrop on the highest part of the property surrounding the sedimentary sequence and consist of fine grained granodiorites, tonalities and syenites of Jurassic age. Quaternary aged alluvial and colluvial deposits fill the Casuto Vallley with depths up to 50m thick. These moderately consolidated sediments have clast sizes ranging from boulders to sand and silt. Placer gold has been exploited in Chile since the pre-colonial period. The earliest records of gold panning are found in vestiges of gold-panning sites up to 5,000 years old located in the Chilean Andes. The first exploitation of gold in the Casuto area is thought to originate with the Molle culture in approximately 655 AD, near Coquimbo-La Serena. The Incas expanded their empire into Chile around 1460 and had gold panning operations through the country. During the early Colonial period, Spanish conquerors expanded the exploitation of panning sites using