NI 43-101 TECHNICAL REPORT ON PASO YOBAI PROJECT, DEPARTMENT GUAIRA, PARAGUAY PREPARED FOR LATIN AMERICAN MINERALS INC. FEBRUARY 15, 2008 D. GEORGE CARGILL, PH.D., P.ENG. CONSULTING GEOLOGICAL ENGINEER CARGILL CONSULTING GEOLOGISTS LIMITED SUITE 501, 55 UNIVERSITY AVE., TORONTO, ON M5J 2H7 CANADA
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NI 43-101 TECHNICAL REPORT ON PASO YOBAI PROJECT, DEPARTMENT GUAIRA, PARAGUAY
PREPARED FOR LATIN AMERICAN MINERALS INC.
FEBRUARY 15, 2008
D. GEORGE CARGILL, PH.D., P.ENG. CONSULTING GEOLOGICAL ENGINEER CARGILL CONSULTING GEOLOGISTS LIMITED SUITE 501, 55 UNIVERSITY AVE., TORONTO, ON M5J 2H7 CANADA
INTRODUCTION ..................................................................................................................................1 INTERPRETATION AND CONCLUSIONS...........................................................................................2 RECOMMENDATIONS.........................................................................................................................3
TECHNICAL SUMMARY ........................................................................................................................4 PROPERTY DESCRIPTION AND LOCATION.....................................................................................4 HISTORY ...............................................................................................................................................5 GEOLOGY.............................................................................................................................................6
2 INTRODUCTION AND TERMS OF REFERENCE .............................................................................9 SOURCES OF INFORMATION................................................................................................................9 LIST OF ABBREVIATIONS ...................................................................................................................10
3 RELIANCE ON OTHER EXPERTS .....................................................................................................11 4 PROPERTY DESCRIPTION AND LOCATION .................................................................................12
MINERA GUAIRA EXPLOITATION CONCESSION (MINING LEASE) ...........................................12 MINAS PARAGUAY EXPLOITATION CONCESSION (MINING LEASE)........................................12 EXPLORATION PERMITS.....................................................................................................................13 MINING LAW AND TAXATION...........................................................................................................15
5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ......................................................................................................................................17
ACCESSIBILITY.....................................................................................................................................17 CLIMATE ................................................................................................................................................17 LOCAL RESOURCES .............................................................................................................................17 INFRASTRUCTURE ...............................................................................................................................18 PHYSIOGRAPHY ...................................................................................................................................18
10 EXPLORATION ....................................................................................................................................30 SATELLITE IMAGERY..........................................................................................................................32 HELICOPTER EM AND MAGNETIC SURVEY ...................................................................................32 MAGNETIC SURVEY ............................................................................................................................32 VERSATILE TIME DOMAIN ELECTRO MAGNETIC (“VTEM”) SURVEY......................................34 MINERALIZATION IN THE PITS .........................................................................................................36 SOIL GEOCHEMICAL SURVEY...........................................................................................................39
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11 DRILLING..............................................................................................................................................42 12 SAMPLING METHOD AND APPROACH ........................................................................................55
SOIL SAMPLES.......................................................................................................................................55 ROCK CHIP SAMPLES...........................................................................................................................55 DRILL CORE SAMPLES ........................................................................................................................55
13 SAMPLE PREPARATION, ANALYSES AND SECURITY .............................................................56 SOIL SAMPLES.......................................................................................................................................56 ROCK CHIP SAMPLES...........................................................................................................................56 DRILL CORE SAMPLES ........................................................................................................................57
METALLIC OR SCREEN FIRE ASSAYS .............................................................................................57 14 DATA VERIFICATION........................................................................................................................57 15 ADJACENT PROPERTIES..................................................................................................................60 16 MINERAL PROCESSING AND METALLURGICAL TESTING...................................................60 17 MINERAL RESERVE ESTIMATES...................................................................................................60 18 RELEVANT DATA AND INFORMATION .......................................................................................61 19 INTERPRETATION AND CONCLUSIONS ......................................................................................61 20 RECOMMENDATIONS .......................................................................................................................62 21 REFERENCES .......................................................................................................................................66 22 SIGNATURE PAGE ..............................................................................................................................68 23 CERTIFICATE OF QUALIFICATIONS............................................................................................69
D. GEORGE CARGILL........................................................................................................................69 APPENDIX 1 ............................................................................................................................................. 1-1
INTRODUCTION Cargill Consulting Geologists Limited (Cargill) was retained by Mr. David Wahl,
President and CEO of Latin American Minerals Inc (the “Company”), to prepare a report on the PasaoYobai property (the “Property”) located about 150 km southeast of Asuncion, Paraguay. This report is entitled “NI-43-101 Technical Report on Paso Yobai Property, Department Guaira, Paraguay” and dated February 15, 2008. Technical Report conforms to Canadian NI 43-101 Standards of Disclosure for Mineral Projects.
Latin American Minerals Inc. is an exploration company working in Argentina,
Paraguay and Colombia. It does not have any mine production or advanced stage projects at the present time.
The Paso Yobai Property is an early stage exploration project with surface
geochemical surveys, airborne geophysical surveys and twelve holes drilled prior to December 31, 2007. There has been some artisanal production from several pits and a little mechanical production from other pits, all located on the Property. There has never been a resource estimate for any of these pits and production records are poor to non-existent.
Cargill has not had any prior involvement with the Property, except for two site visits
in support of this report. This report is considered by Cargill to meet the requirements of a Preliminary
Assessment as defined in NI 43-101 regulations. The Property is an early stage exploration project and there is no inferred resource estimated for any of the pits on the Property.
Site visits were carried out by D. George Cargill from October 2 to 4, 2007 and
February 6 to 7, 2008. The information contained in this report is based on information on file in the public
domain including, but not restricted to, Government of Paraguay maps and publications, limited historic data provided from the Property owners, and on data generated by the Company as a result of exploration completed on the Property over the past year. The data collection and compilation was completed by professional geologists and or exploration technicians under the direction of Dr. Perez, P.Geo., the Company’s “Qualified Person” as defined by NI 43-101.
D. George Cargill prepared all parts of this report.
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INTERPRETATION AND CONCLUSIONS 1) Artisanal mining has demonstrated a large zone of gold mineralization in soils and
weathered rocks, on the Property.
2) Geophysical, geochemical, and geological exploration has demonstrated gold mineralization on the Property is related to:
a) A zone of mafic (basalt) dykes (the “Dyke Zone”). b) The Dyke Zone is bounded and cut by faults parallel to the strike and offset
by faults at a high angle to the strike of the zone. c) The Paso Yobai Gold Zone (the “Main Gold Zone”) has been traced 6.5 km
by soil geochemistry and airborne magnetics and is variably exposed on surface by artisan miners for 3.6 km. Very high gold values in soil geochemistry mark the Main Gold Zone, which corresponds to a linear zone of high magnetic values, bounded by zones of low magnetic values.
d) The aeromagnetic and soil surveys show magnetic anomalies with corresponding gold anomalies parallel to the Main Gold Zone, which suggest parallel mineralized dykes.
e) The distribution of the parallel magnetic anomalies, which are interpreted to be dykes, may be controlled by structures at a high angle to the Main Gold Zone.
f) EM anomalies also parallel the Dyke Zone. These EM anomalies are interpreted as derived from deep sources, and are tentatively interpreted as derived from deep-seated bodies of sulphides.
g) Rock samples from the artisanal mine workings indicate gold mineralization is related to quartz veins in altered mafic dyke and altered (silicified) sandstone near the contacts of the dyke.
h) Gold in the artisanal workings appears controlled by post dyke structures. i) Gold occurs in veins associated with sulphides (pyrite) and as coarse
grained, free gold in veins without sulphides. j) Bonanza grades occur when the sulphide-free veins with visible gold are
superimposed on the veins containing pyrite. k) Paso Yobai has many similar characteristics to several large gold and
copper deposits associated with alkaline rocks, such as Porgera, Cripple Creek, Ladolam, and Palabora.
3) The initial drill program of 12 holes totalling 1,989.2 m, has indicated:
a) The dyke ranges from 5 to 40 m thick and continues to at least 100 m depth.
b) Gold occurs in an altered dyke and sandstones controlled by structural zones, breccias, veins, stock-works within the dyke, and within the altered sandstones near the contact of the dyke.
c) Coarse grained free gold giving bonanza assays has been found to depths of about 100 m, which suggests that much of the free gold is primary.
4) Drilling on the aeromagnetic and soil geochemical anomalies has demonstrated
that the gold mineralization is related to carbonate-quartz veins cutting the mafic
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dyke, and altered sandstones near the contact of the dyke. The gold mineralization including the bonanza grades continues to depths of ±100 m.
5) Although there are only 12 widely spaced drill holes, higher grade, gold
mineralization appears related to variations in the position of the dyke along strike that appear to be dilation zones. The current data indicates that the primary targets in the Main Gold Zone are plunging shoots of structurally controlled gold mineralization.
6) The initial work on the parallel aeromagnetic and soil geochemical gold anomalies
suggests that they are similar to the Main Gold Zone and controlled by structures at a high angle to the Main Gold Zone.
7) The parallel zones present targets similar to those on the Main Gold Zone.
However, multiple parallel zones close to the Main Gold Zone, or to each other, could constitute a target of a large volume of structurally controlled gold mineralization.
RECOMMENDATIONS Cargill recommends a two-phase exploration program with the scope and extent of
the second phase contingent on the results of the first phase.
1) The first phase of the exploration will consist of drilling the remaining drill targets (3,000 m) (Figure 20.1) and carrying out soil geochemistry, geology and trenching both to infill the existing grid and to extend the grid to the east and west to explore parallel dyke systems, summarized as follows.
PHASE ONE PROGRAM
Salaries and fees $150,000
Soil sampling 6,000 samples $50,000
Geochemistry and assaying $80,000
Drilling to complete testing of the established drill targets
3,000 m $550,000
Reporting $20,000
Subtotal $850,000.00 Contingencies 10% $85,000
Total $935,000
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2) The current information indicates a second phase of exploration is warranted. However, the exact scope of work will be based on the results of the Phase One Program. As currently envisioned, the Phase Two Program will consist of:
a) Geochemistry, trenching and mapping to better define the parallel dykes and to extend the Main Gold Zone along strike.
b) Drilling to test new targets developed on the parallel zones and along strike on the Main Gold Zone. Approximately 5,000 m of drilling will be required.
c) Definition drilling on the two best zones within the Main Gold Zone. Cargill estimates that about 12 drill sections with about 5,000 m of drilling will be required to test each zone.
PHASE TWO PROGRAM
Salaries and fees $450,000
Soil sampling 4,000 samples $45,000
Geochemistry and assaying $150,000
Drilling to complete testing of the established drill targets
PROPERTY DESCRIPTION AND LOCATION The Paso Yobai Property is located in south central Paraguay, approximately 150 km
southeast of Asuncion (Figure 4.1). The Property consists of two exploitation concessions and four exploration concessions covering an aggregate total of 15,332 ha. The exploitation (mining) concessions, covering 7,200 ha are owned by two private companies, Minera Guaira and Minas Paraguay, but held under an option agreement with the Company. The Company has received approval for exploration concession Rio Verde (1,332 ha) and is awaiting approval of the remaining three exploration concessions covering 6,800 ha. On approval the Company will hold a 100% interest in the exploration concessions.
The Minera Guaira Mining Lease covers 6,700 ha and was granted by the Republic of Paraguay in 2003 pursuant to its individual Act 2.079/03 (the “Guaira Mining Lease”).
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On February 17, 2007, the Company signed the Contract of Option to Purchase Mining Lease Rights with Minera Guaira S.A. (“Minera Guaira”) as amended on April 18, 2007 and February 5, 2008; which gives, the Company the option to earn a 70% interest in the Guaira Mining Lease by paying escalating cash payments totalling US$2.1 million over 3 years, expending US$500,000 on exploration in Year 1 plus the delivery of 100,000 shares of the Company to Minera Guaira. The Febraury 5, 2008 amendment provided for satisfaction of the $100,000 cash payment due by April 1, 2008 by issuing 114,149 common shares of the Company. On vesting of the 70% interest, a joint venture will be formed. Under the joint venture, if Minera Guaira’s participating interest drops to 15%, 14% of said interest converts to a 3% NSR.
Minera Guaira has been granted an environmental license, required for production,
that is valid through July 2009; however, the Company has temporarily suspended production to fully evaluate the resource of the Guaira Mining Lease.
The Minas Paraguay Mining Lease covers 500 ha and was granted by the Republic of Paraguay in 2001 pursuant to its individual Act 1.708/01 (“Minas Mining Lease”). On February 17, 2007 the Company signed the Contract of Option to Purchase Mining Lease Rights with Minas Paraguay S.A. (“Minas Paraguay”) as amended on April 18, 2007, which gives the Company the option to earn a 70% interest in the Minas Mining Lease by paying escalating cash payments totalling US$2.0 million over 3 years, expending US$ 750,000 on exploration over 2 years plus delivering US$ 50,000 in common shares of the Company. On vesting of the 70% interest, a joint venture will be formed and if Minas Paraguay’s participating interest drops to 5%, 4% of said interest converts to a 10% NPI.
Minas Paraguay has been granted an environmental license, required for production,
and exploration through to July 2009. The Company has temporarily suspended production to fully evaluate the resource of the Minas Mining Lease.
EXPLORATION PERMITS
During 2007, the Company dropped several exploration permits, received approval for exploration concession Rio Verde (1,332ha) and submitted application for three new exploration concessions: Block A (4,000ha), Block B (500ha) and Block C (2,300ha). The total area of the exploration concessions under application is 6,800 ha. As of the date of this report approval for the three exploration concession is pending.
The Company holds all permits required to carry out the proposed exploration
on the Properties.
HISTORY The largest reported exploration property in the Paraguay program was between 1978
and 1982 when the Anschutz Corporation carried out an exploration program in the Parana Basin for Colorado Plateau type uranium deposits. After spending about $25 million dollars, Anschutz stopped the program. Recently other companies have been
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acquiring exploration concessions in Paraguay to cover the uranium anomalies defined by Anschutz.
In the late 1990s, Yamana Resources explored for gold in the alkaline rocks of
Paraguay and drilled a prospect about 50 km east of Paso Yobai but abandoned the claims and left the county.
Work done on the Property consists of:
1996 - Original discovery of the gold occurrence on the Minas Paraguay property by Daniel Benitez.
2001 - Daniel Benitez staked ground and hired a geologist, Juan Carlos Benitez, no
relation. 2002 - Juan Carlos Benitez wrote a geological report summarizing his surface work
and Beitez sold 78% of the property to Ortellado, a construction company. Ortellado purchased a gravity mill in Brazil and used a backhoe and trucks to open up an area 1.2 km long, 20 to 40 m wide, and 5 to 50 m deep on top of the main dyke. Production is not documented but a mine production of 150 oz/month is reported but not supported. Ortellado did no grade or process control and did not assay the ore or the tailings.
2002 - Ortellado hired Dr. Schalamuk from La Plata University in Argentina. He
described the deposits exposed in the pits and did some geochemical sampling. He recommended magnetic and resistivity surveys.
2002 - Sr. Iske completed a magnetometer survey on the adjacent Minera Guaira
Property and mapped the exposures in the pits. 2003 - Sr. Tessone from the La Plata University Group reported the results of the
magnetometer survey that mapped the dike. 2007 - The Company optioned the Minera Guaira Mining Lease and the Minas
Paraguay Mining Lease. 2007 - The Company began the first modern exploration program on the Property .
GEOLOGY Paraguay’s geological framework consists of three cratons ranging in age from 3,800
to 2,700 Ma, composed of gneisses, granulites and greenstone belts, surrounded by 950-550 Ma old metamorphic rocks broadly referred to as the Brazilian Shield. These rocks are covered by intra-cratonic red beds of Carboniferous and Permian age. The geologic evolution of Paraguay to this point was related to the Gondwana Super Continent. With the beginning of the break-up of Gondwana in the Mesozoic, northwest rifts were generated in Eastern Paraguay and related basins filled with Triassic and Jurassic, fluvial and aeolian sandstones. The sedimentary units are intruded by two mafic units: the Alto
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Parana Magmatic Suite and the Sapucai Magamatic Suite. Both units intrude as dikes, sills and extrusive rocks along northwest regional structures. The Sapucai Suite is alkali while the Alto Parana Suite is tholeitic. Radiometric ages for the Sapucai Suite range from 165 Ma to 115 Ma.
The Paso Yobai area is covered by Carboniferous and Permian sediments that outcrop
20 km to the northwest. They are covered by sub-horizontal, Triassic-Jurassic, red, aeolian sandstones with local layers of mudstones. Three mafic units intrude the sedimentary rocks: 1.) Tholeitic-alkalic basalts; 2.) Alkalic basalts of the Sapucai Suite; and 3.) Mafic dikes. As the distinction between tholeitic and alkaline basalts is based on the K20 content; it is difficult to establish which are alkalic and which tholeiitic in the field. However, all intrusive rocks are intruded along northwest structures, which were part of the Mesozoic rifting process.
The Property displays Mesozoic north-south, northwest and northeast elements in the
structural grain, possibly projected through the cover sequence from the underlying older basement. The northwest structures are interpreted to have been active as extensional structures and the northeast as orthogonal fractures during the Cretaceous opening of the Atlantic Ocean. Deep crustal fractures could tap deep mafic intrusion source rocks for gold mineralization.
The mafic dyke and its enclosed mineralization occur in a synistral normal fault as
evidenced by sub-horizontal slickensides in the vicinity of the flexures. Where steep slickensides are recognized on surface, mineralization seems to improve or at least visible gold seems to be more common.
Based on outcrop and drilling data the northwest trending mafic dykes apprear to dip
to the northeast. In addition to the dykes, a pencil-shaped stock on the Property is believed to occur at
the Cerro Mboy occurrence, where a knob like feature results from erosion of marginally softer, kaolin-pyrite (FeO) altered rocks. The scree of mafic rock rich in spherulites is typical of material developed by the concentration of volatiles in the uppermost portion of a blind magma chamber. Marginal silicified sandstones contain well-developed quartz veins, changing to quartz filled breccias at the top of the hill. These features are typical of alteration associated with a buried intrusion.
Gold mineralization occurs in association with the northwest trending, mafic dikes
interpreted as filling pre-existing structures active as normal faults. In detail the northwest dike trend is disturbed by small-scale structures that have:
• Local dextral offsets in dyke segments on intervening north-south cross faults.
• Better gold mineralization occurring where the northwest structures display
flexures to the west-northwest to east-west, or where veins following this trend overprint the general northwest structures.
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• More steeply dipping fault zones displaying better gold mineralization evidenced by more extensive open space, quartz-crystal growth.
High-grade gold shoots occur as flexures where the dikes trend more towards the
west. These vein portions generally dip more steeply which is typical of a dilatant setting in normal faults.
While most slickensides on faults within the mineralized structural corridor are sub-
vertical near the flexures, inclined slickensides occur. The environment is characterized by overall normal fault extension, with local components of strike-slip faulting. The localized sinistral, strike-slip, fault movement is responsible for the development of mineralized shoots in fault flexures and the shoots are interpreted to dip (plunge?) steeply. Normal fault activation would provide flat plunging shoots within the steep dipping fault portions, and inclined shoots could result from mixed components of dip-slip and strike-slip fault activation.
Corbett (2007) identified two types of vein mineralization in Paso Yobai: quartz-
sulphide gold-style mineralization and epithermal quartz-carbonate gold-manganese with low sulphidation mineralization.
QUARTZ-SULPHIDE AU-STYLE MINERALIZATION
Quartz-sulphide gold-(Au)-style mineralization commonly forms early in the paragenetic sequence of the development of intrusion-related gold deposits and comprises gold within crystalline pyrite. Drill holes demonstrate that mineralization in these veins contains high pyrite, kaolin and smectite.
At Paso Yobai epithermal mineralization comprises several mm wide open carbonate, mangano-calcite and minor quartz veins, veinlets and stockworks. These veins are best developed as sheeted veins in the dilatant structural zones defined by west-northwest flexures in the northwest structural corridor. Better developed open carbonate veins are also apparent at outcrop scale on steeper dipping portions of moderately dipping faults. Minor, open-space breccias lined with fine-crystalline pyrite are interpreted to represent mineralization of this type. Many quartz-MnO veins contain wire like free gold growing in open space. These veins are associated with bonanza Au grades, commonly overprinting earlier auriferous pyrite.
The Paso Yobai Gold Project has many similar characteristic of several large gold and
copper deposits associated with alkaline rocks, such as Porgera, Cripple Creek, Ladolam, and Palabora (Corbett, 2007).
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2 INTRODUCTION AND TERMS OF REFERENCE
Cargill Consulting Geologists Limited (Cargill) was retained by Mr. David Wahl, President and CEO of Latin American Minerals Inc. (the “Company”), to prepare a report on the Pasao Yobai property (the “Property”) 150 km southeast of Asuncion, Paraguay. This report is entitled “NI-43-101 Technical Report on Paso Yobai Property, Department Guaira, Paraguay” (the “Property”) and dated February 15, 2008. The Technical Report conforms to Canadian NI 43-101 Standards of Disclosure for Mineral Projects.
The Company is an exploration company working in Argentina, Paraguay and
Colombia. It does not have any mine production or advanced stage projects at the present time.
The Property is an early stage exploration project. There has been surface mapping,
rock sampling, geochemical and airborne geophysical surveys. There have also been 12 holes drilled to December 31, 2007. There has been some artisanal production from several pits on the Property and a little mechanical production from other pits. However, there has never been a resource estimate for any of the pits on the Property and production records are practically nonexistent.
Cargill has not had any prior involvement with the Property, except for two site visits
in support of this report. This report is considered by Cargill to meet the requirements of a Preliminary
Assessment as defined in Canadian NI 43-101 regulations. The Property is an early stage exploration property with no resource estimated for any of the pits.
SOURCES OF INFORMATION
The information contained in this report is based on information on file in the public domain including, Government of Paraguay maps and publications, limited historic data provided from the Property owners and data generated by the Company as a result of exploration completed on the Property over the past year. The data collection and compilation was completed by professional geologists and exploration technicians under the supervision of Mr. Juan Carlos Benitez, General Manager Latin American Minerals Paraguay S.A. and Dr. Waldo Perez, the Company’s “Qualified Person”. The documentation reviewed, and other sources of information, are listed at the end of this report in References.
Discussions were held with the following personnel from Latin American Minerals
Inc.
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• Mr. David G. Wahl, “Engineer of Mines”, P. Eng., P.Geo., President, CEO and Director.
• Dr. Waldo Perez, Ph.D. Sr. Vice President of Exploration and Director. • Mr. Juan Carlos Benitez, B.Sc., General Manager, Paraguay. • Carlos Gustavo Fernandez, M.Sc., Sr. Geologist. • Mina Medina, B.Sc. Senior Geologist.
D. George Cargill prepared all parts of this report. Dr. Cargill visited the Property on
October 4 to 6, 2007 and February 6 to 7, 2008.
LIST OF ABBREVIATIONS
Units of measurement used in this report conform to the SI (metric) system. All currency in this report is American dollars ($) unless otherwise noted.
μ Micron kPa kilopascal
°C degree Celsius kVA kilovolt-amperes
°F degree Fahrenheit kW kilowatt
μg Microgram kWh kilowatt-hour
A Ampere L liter
A Annum L/s litres per second
Bbl Barrels M metre
Btu British thermal units M mega (million)
C$ Canadian dollars m2 square metre
Cal Calorie m3 cubic metre
Cfm cubic metres per minute Min minute
Cm Centimeter MASL metres above sea level
cm2 square centimeter Mm millimetre
D Day Mph miles per hour
dia. Diameter MVA megavolt-amperes
Dmt dry metric tone MW megawatt
Dwt dead-weight ton MWh megawatt-hour
Ft Foot m3/h cubic metres per hour
ft/s foot per second opt, oz/st ounce per short ton
ft2 square foot Oz Troy ounce (31.1035g)
ft3 cubic foot oz/dmt ounce per dry metric tonne
G Gram Ppm part per million
G giga (billion) Psia pound per square inch absolute
Gal Imperial gallon Psig pound per square inch gauge
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g/L gram per litre RL relative elevation
g/t gram per tone S second
Gpm Imperial gallons per minute St short ton
gr/ft3 grain per cubic foot Stpa short ton per year
gr/m3 grain per cubic metre Stpd short ton per day
Hr Hour T metric tonne
Ha Hectare Tpa metric tonne per year
Hp Horsepower Tpd metric tonne per day
In Inch US$ United States dollar
in2 square inch USg United States gallon
J Joule USgpm US gallon per minute
K kilo (thousand) V volt
Kcal Kilocalorie W watt
Kg Kilogram Wmt wet metric tonne
Km Kilometer yd3 cubic yard
km/h kilometre per hour Yr year
km2 square kilometer
3 RELIANCE ON OTHER EXPERTS This report has been prepared by Cargill Consulting Geologists Limited (Cargill) for
the Company. The information, conclusions, opinions, and estimates contained herein are based on:
• Information available to Cargill at the time of preparation of this report,
• Assumptions, conditions, and qualifications as set forth in this report, and
• Data, reports, and other information supplied by the Company and other third party sources.
For the purpose of this report, Cargill has relied on ownership information provided
by the Company. Cargill has not researched Property title or mineral rights for the Paso Yobai Project and expresses no legal opinion as to the ownership status of the Property.
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4 PROPERTY DESCRIPTION AND LOCATION The Paso Yobai Property is in south central Paraguay, about 150 km southeast of
Asuncion (Figure 4.1). The Propery consists of two mining leases and four exploration concessions covering approximately 15,332 ha (Figure 4.2). The exploitation (mining) concessions are owned by two private companies Minera Guaira and Minas Paraguay, but held under option by the Company. The Company has received approval for exploration concession Rio Verde (1,332ha) and has submitted applications to acquire three (3) exploration concessions which, on approval will be wholly owned by the Company.
The Minera Guaira Mining Lease covers 6,700 ha and was granted by the Republic of Paraguay in 2003 pursuant to its individual Act 2.079/03 (the “Guaira Mining Lease”). On February 17, 2007, the Company signed the Contract of Option to Purchase Mining Lease Rights with Minera Guaira S.A. (“Minera Guaira”) as amended on April 18, 2007 and February 5, 2008; which gives the Company the option to earn a 70% interest in the Guaira Mining Lease by paying escalating cash payments totalling US$2.1 million over 3 years, expending US$500,000 on exploration in Year 1 plus the delivery of 100,000 shares of the Company to Minera Guaira. The Febraury 5, 2008 amendment provided for satisfaction of the $100,000 cash payment due by April 1, 2008 by issuing 114,149 common shares of the Company. On vesting of the 70% interest, a joint venture will be formed. Under the joint venture, if Minera Guaira’s participating interest drops to 15%, 14% of said interest converts to a 3% NSR.
The Company has filed the required Quarterly Reports and paid Annual Canon Fees
totalling $3,400. On or before the first anniversary of the Agreement the Company will have spent more than the $500,000 required on exploration.
Minera Guaira has been granted an environmental license, required for production,
that is valid through July 2009; however, the Company has temporarily suspended production to fully evaluate the resource of the Mining Lease.
The Minas Paraguay Mining Lease covers 500 ha and was granted by the Republic of Paraguay in 2001 pursuant to its individual Act 1.708/01 (“Minas Mining Lease”). On February 17, 2007 the Company signed the Contract of Option to Purchase Mining Lease Rights with Minas Paraguay S.A. (“Minas Paraguay”) as amended on April 18, 2007, which gives the Company the option to earn a 70% interest in the Minas Mining Lease by paying escalating cash payments totalling US$2.0 million over 3 years, expending US$
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750,000 on exploration over 2 years plus delivering US$ 50,000 in common shares of the Company. On vesting of the 70% interest, a joint venture will be formed and if Minas Paraguay’s participating interest drops to 5%, 4% of said interest converts to a 10% NPI.
The Company has filed the required Quarterly Reports and has paid Annual Canon
fees totalling $750.00. On or before the first anniversary of the Agreement the Company will have expended in excess of the $500,000 required on exploration of the Mining Lease.
Minas Paraguay has been granted an environmental license, required for production,
and exploration through to July 2009. The Company has temporarily suspended production to fully evaluate the resource of the Mining Lease.
EXPLORATION PERMITS
During 2007, the Company dropped several exploration permits, received approval for exploration concession Rio Verde (1,332 ha) and submitted application for three new exploration concessions: Block A (4,000 ha), Block B (500 ha) and Block C (2,300 ha). The total area of the exploration concessions under application is 6,800 ha. As of the date of this report approval for the three exploration concession is pending.
As the Company has not received formal approval for the exploration permits, no
Canon fees have been paid. When the permits are formally approved payments of $0.85/ha ($6,715) will be required.
The Company holds all permits required to carry out the proposed exploration
on the Properties.
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MINING LAW AND TAXATION
Paraguay has no significant history of mining. On May 3, 2007, Sr. Hector Ruiz Dias, Deputy Mining Minister, Republic of Paraguay introduced the new Mining Law, assuring security of title and defining exploration and exploitation (mining) rights. Under the Mining Law, the mining royalty previously payable to the Government was eliminated as a means of encouraging mining investment in the country and to stimulate a fledgling exploration and mining industry. The VAT is 10% and the maximum income tax payable is 27.5%.
Claims are granted as Prospecting Permits and are good for a period of one (1) year
with the right for a six (6) month extension, or claims can be recorded as Exploration Concessions.
Exploration Permits are granted for a period of two (2) years, with the right for a one
(1) year extension. To maintain the concessions in good standing, Canon Fees are paid annually, payments range depending on the size and age of the concession. After the three (3) year exploration period the exploration concession can be converted to an Exploitation Permit.
Exploitation Permits are granted when the Prospecting and Exploration phases have
been completed and are granted for 25 years, renewable every 5 years. The exploitation permits are surveyed and the corners marked by concrete monuments. To maintain the concessions in good standing, quarterly technical reports must be filed with the Government and annual Canon Fees paid.
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5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ACCESSIBILITY
Paraguay is a small land-locked country covering 406,752 km2. The population is 5.7 million with 57% living in the rural areas and 43% in the urban areas. The capital of Paraguay is Asuncion, a modern city with a population of approximately 2 million. Paraguay has a modern system of highways, railroads and an international airport in Asuncion with many daily flights to neighbouring countries. Paraguay is one of the largest power exporters in South America.
The Property is located about 150 km east-southeast of Asuncion, Paraguay (55°
55’W; 24° 42”S). It can be reached from Asuncion by car along paved national highways and county roads (Figure 4.1). The drive from Asuncion to Paso Yobai takes about 4 hours. The Property is in the Paraneňa Region of Paraguay, east of the Paraguay River.
CLIMATE
The Paraneňa Region has a subtropical climate. It is humid with abundant precipitation throughout the year and moderate seasonal changes in temperature. The region has two distinct seasons: summer, October to March and winter, May to August. During winter, July is the coldest month with mean temperatures of about 17° C. There is no significant north-south variation and the number of days below freezing ranges from three to sixteen. However, no part of Paraneňa is free from the possibility of frost and crop damage. In the summer, October through March, the seasonal average is about 21° C with January, the hottest month, having a mean temperature of 27° C. During the daytime in the summer temperatures reaching 38° C are fairly common. Rainfall in the Paraneňa region is fairly evenly distributed. The least rain falls in August, 2 to 10 cm, and the two periods of maximum precipitation are March to May and October to November. The average annual rainfall is 152 to 165 cm.
LOCAL RESOURCES
Paraguay’s primary resource is agriculture with arable land forming about 6 % of the surface area and permanent pastures 55 %. Other resources include hydroelectric power, forestry, forests form 32% of surface area,, and the mining of limestone.
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INFRASTRUCTURE
Asuncion has the typical resources of a modern city. There is no history of mining in the country, but there is a strong construction industry, which supports a growing quarry, aggregate industry. Heavy road construction equipment is available in Asuncion and to a lesser extent locally. Paso Yobai is a small community having a population of 22,500. There is a small community hospital, police and fire station in Paso Yobai. There is labour locally available, which is largely agriculturally based, but there is a small but active group of local “miners” who are currently mining gold from prospect pits on the Property. The Company is working with these miners and training them in various modern exploration methods to advance the project. The Company office in Asuncion and the field office on the Property have the resources of modern offices including internet connections at both locations.
The Company has a small, grass landing strip on the Property that is currently being
re-approved for use by small aircraft. There is a 500 kv power line to the Property that supplies power to Alex Stewart Laboratories (“Alex Stewart Assayer’s”), sample preparation, laboratory.
PHYSIOGRAPHY
The area is a rolling plateau about 200 m above sea level. It has an overall slope to the east and the south. The principal rivers trend east-west and drain to the Paraguay River to the west and to the Paraná River to the east. The ground surface has relatively low topography, 50 to 75 m. Most of the land has been cleared for agriculture but there are patches of forest between farms and near rivers.
6 HISTORY Paraguay is a country with no history of mining although it has good exploration
potential. The largest reported program was between 1978 and 1982 when Anschutz Corporation, a private American company, carried out an exploration program for oil, gas and minerals. After spending about $25 million dollars Anschutz defined an area with the potential to host a new uranium province. At this point Anschutz ceased exploration probably due to a drop in the price of uranium. Recently other companies have been acquiring exploration concessions in Paraguay to cover the uranium anomalies defined by Anschutz.
In the late 1990s Yamana Resources explored for gold in the alkaline rocks of
Paraguay and drilled a prospect about 50 km east of the Property, but subsequently abandoned the claims and left the county.
19
Work done on the Property includes: 1996 - Original discovery of the gold occurrence on the Minas Paraguay property
by Daniel Benitez. 2001 - David Benitez staked ground and hired a geologist, Juan Carlos Benitez, who
is no relation, to carry out a reconnaissance survey of the area. This survey found gold bearing veinlets in sandstones associated with a mafic dyke.
2002 - Juan Carlos Benitez wrote a geological report summarizing his surface work.
Daniel Beitez sold 78% of the property to Ortellado, a construction company. Ortellado purchased a gravity mill and used a backhoe and trucks to open up an area 1.2 km long, 20 to 40 m wide, and 5 to 50 m deep on top of the main dyke. The production is not documented. A mine production of 150 oz per month is reported but not supported. Ortellado did no grade or process control and did not assay the ore or the tailings.
2002 - Ortellado hired Dr. Schalamuk from La Plata University in Argentina.
Schalamuk described the deposits exposed in the pits and did some geochemical sampling which returned values of 1.93g/t Au, 2.84g/t Au, and 2.08g/t Au. Magnetic surveys were recommended.
2002 - Sr.Iske completed a magnetometer survey on the Minera Guaira property.
This survey defined the mafic dyke. Sr. Iske also mapped the exposures in the pits.
2003 - Sr. Tessone, from the La Plata University Group, reported that their
magnetometer survey had mapped the location of the mafic dike. 2007 - The Company optioned the Minera Guaira Mining Lease and the Minas
Paraguay Mining Lease. 2007 - The Company began the first modern exploration program on the Property .
7 GEOLOGICAL SETTING Paraguay has limited information about its mineral wealth and geologic setting.
There is no Government Geologic Survey and information is either private, company generated, or in scattered scientific reports. The only complete geological map of the country is at 1:1,000,000 scale produced in 1986 by Fulfaro and Alvarenga. The metallogenic map of Paraguay was completed by Caceres and Palmieri in 1986. These geologic and metallogenic maps summarize the regional work done in Paraguay between 1979 and 1983 by Anshustz Corporation who staked 64,000 m2, in eastern Paraguay, and performed a reconnaissance exploration program of mapping, Landsat image analysis,
20
and radiometric and magnetic airborne surveys. Anshustz Corporation left Paraguay in 1987, leaving an excellent database with samples, geophysical data, maps and descriptions of numerous showings and mineral occurrences. Most of this data has been lost and only scattered reports are found now in the Mining Department library. Figures7.1 and 7.2 show the geology and mineral occurrences of eastern Paraguay. There are no active metal mines in Paraguay and the only mining activity is in quarries.
A program, sponsored by the German Government, exists to map Paraguay at
1:100,000 scale but only 4 sheets of 79 have been completed. The Property is partially covered by the “1:100,000 Villa Rica” geology sheet by Gonzalez and Cubas (2001). This map, plus the geologic work of the Company’s exploration team and interpretation of magnetic surveys and satellite imagery, produced the regional geology map for the Paso Yobai region (Figure 7.3).
REGIONAL GEOLOGY
Paraguay’s geological framework consists of three cratons ranging in age from 3.800 to 2,7 Ma, composed of gneisses, granulites and greenstone belts, surrounded by 950-550 Ma old metamorphic rocks broadly referred to as the Brazilian Shield. These rocks are covered by intra-cratonic red beds of Carboniferous and Permian age, the Coronel Oviedo Formation and Independencia Group (Table 7.1). The geologic evolution of Paraguay to this time was related to the Gondwana Super Continent, which consisted of Africa, Australia and South America. With the beginning of the break-up of Gondwana in the Mesozoic large northwesterly oriented rifts were generated in Eastern Paraguay and the related basins filled with Triassic and Jurassic, fluvial and aeolian sandstones, the Misiones Formation. The sedimentary rocks are intruded by two rift related, mafic units, the Alto Parana Magmatic Suite and the Sapucai Magamatic Suite. Both units intrude as dikes and sills and outcrop as extrusive rocks along northwest regional structures. The Sapucai Suite is alkali and consists of carbonatites, tephrites, nepheline syenites, shonkonites, malignites, phonolites, essexites, kimberlites and alkaline trachytes. The Alto Parana Suite consists of tholeitic and alkalic basalts and lamprophides (Gonzalez Nunez and Cubas Villalba, 2001). K-Ar radiometric ages for the Sapucai Suite range from 165 Ma to 115 Ma.
LOCAL GEOLOGY
The Paso Yobai area is covered by Carboniferous and Permian sediments that outcrop 20 km to the northwest (Figure 7.3). These sediments are covered by the Misiones Formation, which consists of sub-horizontal Triassic-Jurassic red, aeolian sandstones with local mudstone interbeds. There are three mafic intrusive units cutting these sedimentary units: 1.) tholeitic-alkalic basalts (Alto Parana Suite); 2.) alkalic basalts (Sapucai Suite); and 3.) mafic dikes. As the distinction between tholeitic and alkaline basalts is based on the K20 content it is difficult to establish in the field which are alkaline and which are tholeiites. However, all intrusive rocks intrude along northwest structures of the Mesozoic rifting process.
Figure 7.1
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TABLE 7.1 STRATIGRAPHY EASTERN PARAGUAY
Latin American Minerals Inc – Paso Yobai Project
Age Formation Rock Type Type of Intrusive
Rock type
Quaternary-Tertiary
Unconsolidated sediments
Tertiary Intrusions Stocks and dykes
Sodic- Alkaline
Late Early Cretaceous
San Juan Bautista Gp
Basalts
Intrusions Stocks and dykes
K-Alkaline rocks
Paraná Basin Thoeliitic basalts
Early Cretaceous
Intrusions Stocks and dykes
K-Alkaline rocks
Jurassic-Cretaceous
Misiones Fm Sedimentary rocks including sandstones
Permian Independencia Gp Sedimentary rocks
Permian-Carboniferous
Coronel Oviedo Gp Sedimentary rocks
Ordovician-Silurian
Caacupé and Itacurubi Gps
Sedimentary rocks
Cambro-Ordovician
Itacupumi Gp Platform carbonate rocks
Archaean to Proterozoic
Crystalline Basement
High to low grade metasedimentary rocks
PROPERTY GEOLOGY
The Property displays Mesozoic structural elements trending north-south, northwest and northeast. These may be projected through the cover sequence from structures in the basement. Northwest structures are interpreted as extensional structures and the northeast as orthogonal fractures formed during the Cretaceous opening of the Atlantic Ocean. As
24
deep crustal fractures they may be related to deep mafic intrusions, which are possible source rocks for gold.
The mafic dyke and its associated mineralization occur in a sinistral normal fault
marked by horizontal slickensides (Corbett, 2007). Where steep slickensides are recognized on surface, visible gold is more common.
Although many northwest trending mafic dykes dip to the northeast in outcrop and
drilling data, southwest dips have been determined from the aeromagnetic data. In addition to the dykes, a pencil-shaped stock is interpreted at the Cerro Mboy area
on the Property (Figure 10.4), where a knob-like feature results from erosion of marginal, softer, kaolin-pyrite (FeOx) altered rocks. The talus of mafic rock rich in spherulites is characteristic of rock textures developed in the upper portion of blind magma chambers. Marginal silicified sandstones contain well developed quartz-veins, changing to quartz-fill breccias at the top of the hill. These features are typical of alteration associated with a buried intrusion.
Gold mineralization occurs associated with the northwest trending, normal-fault
filling, mafic dykes. The northwest dyke trend is disturbed by small-scale structures believed to be local, dextral offsets in dyke segments on north-south cross faults. Other cross faults such as the northeast structures shown on the remote sensing data may also offset the main, northwest structures.
In several instances, better gold mineralization within dilational sheeted-veins occurs
where the northwest structures display flexures to the west-northwest to east-west, or where veins following this trend overprint the general northwest structures. More steeply-dipping fault portions than the general moderate dip display better mineralization apparent as more extensive, open-space quartz-crystal growth.
High-grade gold shoots are interpreted to occur in flexures where the dykes trend
more towards the west. These vein portions generally dip more steeply, as is typical of a dilated setting in normal faults.
While most slickensides on faults, within the mineralized structural corridor, have
sub-vertical trends, near the flexures inclined slickensides occur. The Paso Yobai environment is characterized by normal-fault extension, with local components of strike-slip faulting. The localized, sinistral, strike-slip fault movement is probably responsible for the development of mineralized shoots in fault flexures and the shoots are interpreted to dip (plunge?) steeply. Normal fault activation would create flat, plunging shoots within the steep-dipping faults, and inclined shoots could result from mixed dip-slip and strike-slip fault movements.
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8 DEPOSIT TYPES Sillitoe (2002) pointed out that most gold deposits associated with alkaline rocks are
broadly similar to those hosted by their cal-alkaline counterparts. However, alkaline suites were deficient in high-sulphidation epithermal-gold deposits. The characteristics of several large gold and copper deposits associated with alkaline rocks, Porgera, Cripple Creek, Ladolam, and Palabora, diverge from their most closely related deposit types making them “unique”. Most types of gold and copper deposits developed in calc-alkaline provinces constitute exploration targets in and around alkaline igneous centres. Sillitoe (2002) thought that the possibility of encountering unconventional giant alkaline deposits lacking analogous calc-alkaline examples might be of greater interest. He also pointed out that while the greatest exploration potential was in or behind calc-alkaline arcs at convergent plate boundaries, an anorogenic, intra-continental setting should not be ignored.
The model for Paso Yobai is part of the intra-continental rift environment (Figure
8.1). All known heat sources for the brines and mineralizing events are mafic to ultramafic, alkalic rocks. Alkalic rocks are known as important sources of mineralization, from the mafic and ultramafic to the felsic end of the spectrum. The Paso Yobai mineralization has similar characteristics to intra-continental rifts including:
• Mineralization hosted in veins and stockwork of calcite, minor quartz,
mangano-calcite and fluorite.
• Mineralization spatially related to mafic dykes.
• Fluid inclusions show temperatures between 180 and 240° C and salinities of 2.5 Wt% NaCl.
• PIMA (Portable Infrared Spectrometer) measurements show smectite-calcite-
silica alteration assemblages, characteristic of low temperature, neutral brines.
• The geochemical signature of the stockworks has anomalous gold, vanadium, copper, arsenic and phosphorous.
• Gold present as fine-gold (<0.1 mm) grains and coarse-gold grains (up to 50
mm) in the carbonate veins. There is little silver in the gold. These characteristics are typical of low sulphidation, epithermal, gold mineralization
defined by Corbett and Leach, (1998), Corbett (2005) and Hedenquist et. al. (1996). Intrusion-related epithermal-gold mineralization often has supergene-gold
enrichment, particularly in climates characterized by wet/dry cycles and tropical environments of deep weathering. At Paso Yobai, the questions as to whether gold enrichment at surface generated the gold, soil anomaly and the presence of high-grade
27
gold in rock chip samples at surface represented a supergene enrichment of low, primary-gold grades was important to resolve. Drilling has demonstrated high-grade gold-mineralization occurs at depths of up to 200 m below surface oxidation. The Company has concluded that although supergene enrichment might exist in the area, it is not a major concern from the exploration perspective.
Green, smectite-clay alteration commonly recognized in the vein system on surface
and in all drill holes, suggests Paso Yobai is eroded to expose the top of an epithermal vein system. As a poorly eroded epithermal system, Paso Yobai is likely to have depth potential.
29
9 MINERALIZATION Corbett (2007) identified two types of vein mineralization in Paso Yobai: quartz-
sulphide gold-style mineralization and epithermal quartz-carbonate gold-manganese with low sulphidation mineralization.
QUARTZ-SULPHIDE AU-STYLE MINERALIZATION
Quartz-sulphide style, gold (Au) mineralization commonly forms early in the paragenetic sequence of the development of intrusion-related gold deposits and comprises gold within crystalline pyrite. Drill holes have demonstrated that mineralization of this type is associated with high pyrite, kaolin and smectite.
Quartz-sulphide style, gold mineralization forms early in the paragenetic sequence of
the development of intrusion-related gold-deposits and comprises pyrite, now oxidized to iron oxides (FeOx). Forms of quartz-sulphide mineralization recognized on the Property include:
• Disseminated pyrite within the dykes and wall rocks.
• Pyrite veins with local, coarse crystalline, tightly packed, quartz, as individual
veins or packages of sheeted arrays.
• Shears and breccia zones with matrix of FeO and similar tightly packed, crystalline quartz.
At Paso Yobai epithermal mineralization comprises several mm wide open carbonate, mangano-calcite and minor quartz- veins, veinlets and stockworks. This mineralization is best developed as sheeted veins in the dilated, structural zones defined by west-northwest flexures in the northwest structural corridor. The sheeted veins have better developed open carbonate veins. Minor, open-space breccias lined with fine-crystalline pyrite are believed to be this type of mineralization. Many quartz-MnO veins contain wire-like, free gold growing in open space. These veins are associated with bonanza gold grades and commonly overprint earlier auriferous-pyrite rich, quartz veins.
At Cerro Mboy, minor, open-space breccias, lined with fine-crystalline pyrite are
interpreted as this style of epithermal mineralization.
30
Artisanal miners at the Granada pit (Figure 10.4) report the highest gold grades occur with kaolin in contact with jarosite. The kaolin-jarosite association suggests that quartz-pyrite gold mineralization may have been upgraded by fluid mixing.
10 EXPLORATION The major exploration programs on the Property include: interpretation of satellite
imagery, airborne geophysics, soil geochemistry, rock chip sampling in artisanal workings, and limited mechanical trenching (Figure 10.1). The airborne geophysical survey was conducted by a contractor under the field supervision of Mr. John Kieley, P.Geo, the Company’s independent consulting geophysicist and a “Qualified Person”. Sample preparation and analyses for soil samples, rock samples and drill core samples were carried out under the supervision of professionals from Alex Stewart Assayers a company of certified assayers in Mendoza, Argentina. The other aspects of the exploration program were carried out by company personnel under the supervision of the Company’s Qualified Person, Dr. Waldo Perez. The costs of the work to the end of December 31, 2004 are summarized in Table 10.1.
TABLE 10.1 EXPLORATION EXPENDITURES 2007 Latin American Minerals Inc. – Paso Yobai Project
Category Amount Costs (US $)
Drilling 2,000 m $450,000
Airborne Geophysics 3,546 km $475,000
Property Payments $326,000
Geochemistry $100,000
Lab Construction $180,000
Contracting: Cat work, trenching, water $149,000
Salaries/fees $320,000
Total $2,000,000.00
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SATELLITE IMAGERY
The Company acquired IKONOS satellite imagery with a pixel definition of 50 cm covering an area of approximately 10 km x 10 km. This image has been used to help locate the drill holes, preliminary surface mapping of structures, there is limited or no outcrops, as well as to locate surface property boundaries, rivers, etcetera. The location of the area covered by the IKONOS image with respect to the mineral properties is shown in Figure 10.1.
HELICOPTER EM AND MAGNETIC SURVEY
On May 4, 2007, the Company signed a contract with Geotech Airborne Limited (“Geotech”) to carry out a helicopter-borne geophysical survey for about 2,500 line-km over the Paso Yobai Area. The airborne survey was carried out under the direct field supervision of Mr. John Kieley, P.Geo, the Company’s independent consulting geophysicist and “Qualified Person”.
Between June 18 and July 2, 2007, Geotech completed a survey of 3,546.1 line
kilometers covering the Property (Anon, 2007). The principal geophysical sensors included a time domain, electro-magnetic (VTEM) system, and a cesium magnetometer. Ancillary equipment included a GPS navigation system and a radar altimeter. In-field data processing, which included quality control and compilation of data, was done at Paso Yobai. The final data processing including generation of final, digital-data products was done at Geotech’s office in Aurora Ontario. End products of the survey included a total-magnetic field-contour map and electromagnetic, stacked-profiles map. The contractor concluded that “a number of EM anomaly groupings were identified and that ground follow-up of those anomalies should be carried out if they were supported by other geoscientific data”.
MAGNETIC SURVEY
The Company’s analysis of the airborne magnetic-data identified a strong, linear magnetic-anomaly previously discussed and related to the Main Gold Zone, as well as several additional and untested, linear magnetic-anomalies, inferred to be parallel dykes on the Property (Figure 10.2). The 6.5 km long Main Gold Zone traced by soil geochemistry and exposed intermittently along strike by artisanal miners for 3.7 km, has a distinct, high magnetic-signature bounded by two magnetic lows, which the Company believes reflects the alteration around the mineralized system. The magnetic survey also indicated that the dyke continues to the northwest beyond the limits of the gold soil-anomaly for at least 2.7 km. To the southeast this linear magnetic feature is displaced by a north-easterly trending, magnetic lineament probably representing a northeast trending, conjugate-fault zone. After the displacement, the magnetic anomaly associated with the Main Gold Zone, soil anomaly can be traced to the southeast along strike for an addition 2.7 km. The total length of the linear magnetic anomaly locally
34
associated with the Main Gold Zone is approximately 11.9 km. The survey confirmed the regional, northwest, structural trend identifying numerous lenticular, magnetic anomalies trending northwest-southeast. The survey also identified several circular anomalies interpreted to be intrusive stocks.
VERSATILE TIME DOMAIN ELECTRO MAGNETIC (“VTEM”) SURVEY
The VTEM system is a new airborne, electromagnetic system. Key features include:
• Superior exploration depth – over 400 metres.
• Low base frequency (25 or 30 Hz) for penetration through conductive cover.
• High spatial resolution – 2 to 3 metres receiver-transmitter symmetry.
• Spotting drill targets directly off of the airborne results.
• Excellent resistivity discrimination and detection of weak anomalies.
• Virtually impervious to power line interference. The VTEM survey identified numerous, variably conductive units associated with
potentially significant structural and geological features on the Property. The shallow conductors on the apparent conductivity map (Figure 10.3) show a chargeable trend, about 4 km long, sub-parallel to the Main Gold Zone. Thirteen (13) structural features have been identified and are characterized by variably magnetic, linear conductors reflecting five (5) shallow-response conductors and eight (8) deep-response conductors, which typically trend north-westerly across the Property. The shallow response conductors range from 1 km to 2 km in length for an aggregate total strike length of 8 km. The deep response conductors range for from 1 km to 3 km long for an aggregate total strike length of 17 km. The Company believes that the conductors reflect shallow and deep seated structural features and/or mafic-alkalic dykes, and may contain sulphide mineralization.
A large, VTEM anomaly located immediately south of the mafic-alkalic dyke is of
unique size and shape and is coincident with an area of low magnetic values on the south side of the Main Gold Zone. The Company believes that this coincidence reflects an “alteration finger print” around the dyke. However, this coincidence does not exist on the north side of the dyke, which indicates that there is no conductivity associated with this area of low magnetic values. Drilling will be required to determine the cause of this unique VTEM anomaly.
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MINERALIZATION IN THE PITS
Rock chip data was obtained from sampling completed at Minera Guaira and Minas Paraguay pits, with additional sampling from the numerous pits excavated by the local miners (Figure 10.4). The sampling environment was hazardous due to the very unstable nature of the pit slopes in the workings. Extreme care was taken to collect the minimum amount of sample necessary so as not to disturb the stability of the pit walls. The extensive weathering profile and the extensive alteration of the rock also presented challenges.
A total of 584 rock chip samples were collected in 2007. Table 10.2 presents the
most significant rock chip assays. Typically, 3 kilos of material would be taken over 1 m. Because of the scale of the project, the sample numbers are tied to a geographic location, such as the name of a mine or pit and the results shown on the satellite image of the region.
All sample preparation and analyses were carried out under the supervision of
professionals from Alex Stewart Assayers.
February 2008
38
TABLE 10.2 SIGNIFICANT ROCK CHIP SAMPLES
Latin American Minerals Inc. – Paso Yobai Project
Target Sample Number
Sample Width (m) Au (g/t)
DELFIN 187370 Grab 1.66
10172 2.00 1.73
125 3.48 1.97
104 Grab 10.61
187362 Grab 28.60
GRANADA 144 Grab 2.22
187366 Grab 2.80
10396 2.00 2.94
150 Grab 4.00
10008 0.40 4.32
10400 2.00 4.78
10288 2.00 5.28
10397 2.00 6.66
10009 0.50 11.32
10007 0.40 12.09
10399 2.00 31.81
187369 Grab 32.10
GUAIRA 10048 0.50 1.10
143 Grab 1.19
10001 0.50 1.19
1998-W 0.20 1.19
10043 0.50 1.38
187347 Grab 1.76
1999-W 0.20 2.43
10119 2.00 2.52
10049 0.50 2.88
10090 1.00 2.91
141 1.00 3.59
10087 1.00 6.12
10004 0.50 9.13
187348 Grab 10.40
187351 Grab 15.10
10088 1.00 21.47
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TABLE 10.2 SIGNIFICANT ROCK CHIP SAMPLES Latin American Minerals Inc. – Paso Yobai Project
Target Sample Number
Sample Width (m) Au (g/t)
10002 0.50 98.27
TONY 118 4.01 1.06
117 1.20 1.11
42 0.15 1.43
187383 Grab 1.47
41 0.2 2.25
187308 Grab 2.28
187397 Grab 3.03
187392 Grab 4.83 The rock chip results confirm the presence of significant gold values in weathered
bedrock corresponding to the gold soil anomaly (Figure 10.5).
SOIL GEOCHEMICAL SURVEY
Based on the trend of the mineralized zone defined by the artisanal pits and on geological observations the geochemical survey grid was established with a baseline tending 135° and with grid lines every 200 m trending 045°. Soil sample stations were established every 25 m along the grid lines. The location of the survey grid and the sample stations were GPS controlled.
Based on the soil profile exposed in the pits, it was determined the best sample
medium was at the A-B soil-horizon contact which is at a depth of between 0.5 m and 1.0 m. It was also determined that a 2.5 kg sample should be collected. A total of 8,500 samples will be collected on completion of the survey. The samples are tagged with a pre-numbered tag and bagged in micropore bags to allow humidity to evaporate. The samples were sent to the preparation facility on site operated by Alex Stewart Assayers. About 5,694 samples were collected in 2007.
Results of the soil survey are shown on Figure 10.5. The basic statistical analysis of
the current soil sampling database (5,694) is given in Table 10.3.
February 2008
41
TABLE 10.3 DESCRIPTIVE STATISTICS OF
THE SOIL SAMPLE DATABASE Latin American Minerals Inc. – Paso Yobai Project
Au (ppb)
Valid cases 5,694
Mean 9.83
Std. error of mean 0.44
Variance 1,087.33
Std. Deviation 32.97
Variation Coefficient 3.36
rel. V.coefficient(%) 4.45
Skew 16.05
Kurtosis 399.27
Minimum -2
Maximum 1,065
Range 1,067
Sum 55,960
1st percentile -2
5th percentile -2
10th percentile -2
25th percentile -2
Median 4
75th percentile 9
90th percentile 23
95th percentile 45
99th percentile 112.05
Geom. mean ---- The gold soil, geochemical results are a valuable exploration tool. The survey
defined the gold-bearing trend exposed by the local mineral and past producing mines of Minas Paraguay and Minera Guaira referred to as the Main Gold Zone, which has been traced along strike for 6.5 km and is variably up to 2 km wide.
The diagnostic features of the Main Gold Zone anomaly are:
1) Statistically, the gold content in the soils is extremely high, ranging from 75 ppb to 1,100 ppb Au;
42
2) The strike length of the anomaly as currently defined is 6.5 km;
3) The width of the soil anomaly is up to 1,500 m especially in the undisturbed forested area to the northwest. The magnitude of this anomaly is >50 ppb over 225 m, including nine continuous sample sites that average 243 ppb;
4) The anomaly is repeated on multiple adjacent lines 200 m apart;
5) The areal extent of the anomaly is regional covering in excess of 400 ha.
The anomaly in the area exploited by the local miners has an entirely different soil
geochemical finger print. It is poorly defined and erratic. The soil-geochemical survey outlined several parallel zones that correspond to some
of the magnetic highs parallel to the Main Gold Zone magnetic anomaly. Ongoing sampling will further define these new anomalies.
11 DRILLING In October 2007, the Company signed a drill contract with Patagonia Drilling, based
in Mendoza, Argentina, for 5,000 m of HQ diamond-core drilling using a truck-mounted UDR coring drill. Drilling commenced on November 1, 2007. The program comprises a series of diamond drill cross-sections at right angles to the trend of the gold-bearing zone designed to test the zone to depths up to 200 m. Twelve (12) holes, totalling 1,989.2 m, were drilled in 2007. The drill-hole locations and depths are presented in Table 11.1 and on Figure 11.1. Drill hole assays for gold are given in Appendix 1 and examples of the drill logs are presented in Appendix 2.
During the 2008 drill program three holes have been completed. As of the date of this
report assays are pending.
43
TABLE 11.1 DIAMOND DRILL HOLE COORDINATES
Latin American Minerals Inc. – Paso Yobai Project
Hole Depth (m) Azimuth (°) Inclination (°) X Y
LAT-1 137.90 215 -50 599302 7148307
LAT-2 165.30 218 -65 599302 7148307
LAT-3 128.30 205 -50 599759 7147792
LAT-4 152.70 204 -65 599760 7147792
LAT-5 243.40 205 -70 599770 7147844
LAT-6 143.50 211 -50 599703 7147834
LAT-7 263.90 220 -70 599732 7147882
LAT-8 310.20 200 -65 599863 7148702
LAT-9 153.00 220 -50 599153 7148688
LAT-10 56.90 230 -60 599011 7148864
LAT-11 129.00 220 -60 599560 7147952
LAT-12 129.00 220 -60 599560 7147952 Assays have been received for drill holes LAT 1 through LAT 12 inclusive. Gold
assays are included in Appendix 1. Significant gold assays are summarized in Table 11.2.
TABLE 11.2 SIGNIFICANT DIAMOND DRILL ASSAYS Latin American Minerals Inc. – Paso Yobai Project
From To Interval Au (g/t)* Au (g/t) (m) (m) (m) Classic Fire Assay Metallic Fire Assay
DDH-LAT-1 92.00 102.00 10.00 1.64
Including:
92.00 94.00 2.00 4.23 5.96
DDH-LAT-3 Gold Bearing Zone Intersected over 1m from 112.00m to 113.00m
112.00 113.00 1.00 12.60 13.00
DDH-LAT-6 Gold Bearing Zone Intersected over 6m from 112.00m to 118.00m
112.00 118.00 6.00 11.00 15.30
Including:
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TABLE 11.2 SIGNIFICANT DIAMOND DRILL ASSAYS Latin American Minerals Inc. – Paso Yobai Project
From To Interval Au (g/t)* Au (g/t) (m) (m) (m) Classic Fire Assay Metallic Fire Assay
112.00 113.00 1.00 7.87 9.13
113.00 114.00 1.00 30.77 37.86
114.00 115.00 1.00 1.84 1.11
115.00 116.00 1.00 24.59 25.22
which includes:
112.00 116.00 4.00 18.51
Gold Bearing Zone Intersected over 6.50m from 99.00 m to 105.50 m
99.00 105.50 6.50 26.64
Including:
100.50 104.00 4.00 43.08
100.50 101.00 0.50 138.39
104.00 104.50 0.50 105.51
88.20 92.80 4.60 3.20
DDH-LAT-11 Gold Bearing Zone Intersected over 3.60 m from 89.20 m to 92.80 m
89.20 89.70 0.50 9.55
89.70 90.20 0.50 11.87
90.20 91.00 0.80 0.03
91.00 91.80 0.80 0.70
91.80 92.30 0.50 4.57
92.30 92.80 0.50 3.08
Gold Bearing Zone Intersected over 6.50 m from 99.00 m to 105.50 m
99.00 100.00 1.00 0.56
100.00 100.50 0.50 0.28
100.50 101.00 0.50 139.39
101.00 101.30 0.30 28.49
101.30 101.80 0.50 24.48
101.80 102.30 0.50 6.72
102.30 103.50 1.20 2.38
103.50 104.00 0.50 15.41
104.00 104.50 0.50 105.51
104.50 105.00 0.50 3.93
105.00 105.50 0.50 0.24
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TABLE 11.2 SIGNIFICANT DIAMOND DRILL ASSAYS Latin American Minerals Inc. – Paso Yobai Project
From To Interval Au (g/t)* Au (g/t) (m) (m) (m) Classic Fire Assay Metallic Fire Assay
DDH-LAT-12 Gold Bearing Zone Intersected over 1.05 m
85.90 86.95 1.05 3.49 Figures 11.2 to 11.9 show drill sections for all the holes. Drilling has to date traced
the dyke for about 1.3 km. The geology is essentially the same along this distance and there are significant gold intersections in five of the twelve widely spaced holes. Existing results indicate the need for follow up drilling in the 600 m zone between diamond drill hole LAT-6 and LAT-2.
The intersections are structurally controlled in widely spaced drill holes. As the
mineralized zones and the controlling structures are defined by the same drill holes it is difficult to provide a global estimate of true thickness. The geological sections suggest true thickness is about 75% of the down-hole length but this is a very preliminary estimate.
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12 SAMPLING METHOD AND APPROACH The soil, rock chip and drill core sampling programs were designed by Dr. Waldo
Perez, P. Geo., the Company’s “Qualified Person” responsible for the project. The various programs were carried out by experienced geologists and or exploration specialists under the supervision of Perez.
SOIL SAMPLES
Samples were collected on lines 200 m apart perpendicular to the known gold-bearing zones at the contact between the A and B soil horizons. The samples were collected at 25 m intervals along the lines and consisted of 2.5 kg of material collected at depths ranging from 50 cm to 100 cm. The samples were collected in pre-numbered micropore bags which allowed humidity to evaporate. The samples were sent to the preparation facility operated by Alex Stewart Assayers. Approximately 5,694 samples or 67 % of the 8,500 samples planned for the program have been collected.
The analytical results have undergone statistical interpretation to determine
background, threshold and anomalous values and the results are presented and discussed in Section 10 Exploration.
ROCK CHIP SAMPLES
The lack of outcrop on the Property made rock chip sampling difficult. Rock chip samples were collected from existing pits on the property. Details of this sampling on the Property are given in Section 10 Exploration, the sampling environment was usually hazardous and extreme care was taken to collect the minimum amount of sample necessary to avoid disturbing the pit walls.
A total of 603 rock chip samples were collected in 2007 and the significant assay
results are presented in Section 10.
DRILL CORE SAMPLES
At the drill site, the core was placed in core boxes and delivered to a secure, field, core processing centre. The core was “split” using a diamond saw operated by experienced exploration technicians and logged by professional geologists. The typical sample interval was 1 m but the intervals varied from 2 m to 0.5 m as determined by the geologist logging the core. When visible gold was observed the sample was assayed by “metallic” assay procedures. Half of the core remains in the core box as a permanent reference of the interval sampled. The other half formed the samples and was delivered
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to the sample preparation facility, operated under the direct supervision of professionals from Alex Stewart Assayers.
As of December 31, 2007, a total of 12 holes have been drilled and a total of 708
samples have been taken for analysis.
13 SAMPLE PREPARATION, ANALYSES AND SECURITY
The soil, rock chip and drill core samples were prepared on site under the supervision and QA/QC provided by professionals from Alex Stewart Assayers. This company is an ISO 9001-certified laboratory with laboratory facilities in Mendoza, Argentina and headquarters in England.
SOIL SAMPLES
The soil samples were delivered to Alex Stewart Assayers’ supervised, preparation facility on the Property in pre-numbered micropore bags. The samples are dried in stainless steel containers at 80° C and sieved at -140 mesh. When small pellets formed during drying they were crushed by hand using a stainless steel ball. After drying and sieving the sample was split to obtain a 200 g pulp which was shipped by truck to Asuncion and by a bonded international courier to Alex Stewart in Mendoza. All samples were analyzed for gold and multi-elements. Gold was analyzed by Fire Assay with AA finish using 50 g sample. Accuracy of results is tested through the systematic inclusion of blanks and certified reference standards. The multi-element assays were done using ICP.
ROCK CHIP SAMPLES
The rock chip samples were collected in pre-numbered bags. The samples were dried, crushed and part of the sample was tagged and archived as coarse reject and the remaining part was ground to <200 mesh and shipped by bonded courier to Alex Stewart Assayers in Mendoza, Argentina. All samples were assayed for gold using fire assay and multi-elements by ICP. Accuracy of results is tested through the systematic inclusion of blanks, duplicates and certified reference standards.
In 2007, approximately 603 rock chip samples were collected and assayed.
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DRILL CORE SAMPLES
The core samples were crushed, dried and split under the on site supervision and QA/QC provided by professionals from Alex Stewart Assayers.
When the split sample was crushed most was archived as coarse reject and 800 g was
pulverized to <200 mesh and shipped by bonded courier to Alex Stewart Assayers in Mendoza. All samples were fire assayed for gold using a 50 g sample. For the multi-elements the samples were analyzed using ICP.
METALLIC OR SCREEN FIRE ASSAYS Some core samples exhibit a pronounced "nugget" effect due to the presence of
coarse grained, particulate gold. The result is a scatter in the gold analytical results making it difficult to assess the true gold concentration. To improve the analytical reproducibility a metallic or “screen” assay was carried out on samples where gold was observed. For the metallic fire assay the sample is crushed, 400 g of pulp sieved and the >100 micron (150 mesh) portion of the sample is collected and assayed in its entirety. The <100 micron (150 mesh) portion of the sample is homogenized and a 50 g sample is assayed. The final assay reported is the weighted average of the coarse and fine fractions.
14 DATA VERIFICATION The company includes one blank, one standard and one duplicate in every thirty
samples to maintain quality control. Duplicates are prepared by cutting the remaining half core into a quarter for the assay interval and re-assaying the quartered core. Blanks are a local sandstone collected from a quarry. Standards are from CDN Resource Laboratories and represent high, medium and low gold values. Standards are purchased in 400 g bags and the entire bag is sent to Alex Stewart Assayers. Examples of the assay results for the Company’s standards and duplicates are given in Figures 14.1 and 14.2.
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FIGURE 14.1 ASSAYS OF A STANDARD SAMPLE
FIGURE 14.2 THOMPSON AND HOWATH PLOT OF DUPLICATE ASSAYS
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On the initial visit (2007), Cargill collected three samples from the artisanal pits which were analyzed for gold using FA and multi-elements using ICP by SGS Laboratories in Toronto. The results are given in Table 14.1
TABLE 14.1 CARGILL’S SAMPLES FROM PITS
Latin American Minerals Inc – Paso Yobai Project
Sample Au (ppb) Au (ppm)
1 >10,000 284.00
2 751 0.075
3 15 0.002 On the second visit (2008) Cargill duplicated six core samples by quartering the core
and collecting pulps of five of the quartered core samples. No pulp was available on site for the sixth sample. These verification samples were assayed using a 50 g sample by fire assay at ALS-Chemex in Mendoza, Argentina.
TABLE 14.2 CARGILL’S RE-ASSAY OF DRILL CORE Latin American Minerals Inc – Paso Yobai Project
Drill Hole From To Alex Stewart ALS-Chemex
(m) (m) Au (ppm) Au (ppm)
1 96.00 98.00 0.56 0.136
3 112.00 113.00 12.83 0.005
4 130.00 131.00 1.66 0.165
6 113.00 114.00 30.77 11.32
6 115.00 116.00 24.59 5.35
11 101.80 102.30 Fine 3.31
Coarse 26.42
Average 6.72 6.32 Some of the variance in assays is because Cargill’s samples (ALS-Chemex) are ¼ core and LAM’s samples (Alex Stewart) are ½ core.
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TABLE 14.3 CARGILL’S RE-ASSAY OF PULPS Latin American Minerals Inc – Paso Yobai Project
Drill Hole From
(m) To (m)
Alex Stewart Au (g/t)
ALS-Chemex Au (g/t)
1 96.00 98.00 0.56 0.567
3 112.00 113.00 12.83 13.95
4 130.00 131.00 1.66 0.152
6 114.00 114.00 30.77 33.10
6 115.00 116.00 24.59 26.00
11 101.80 102.30 No Pulp No Pulp
The re-assays (ALS-Chemex) compare very well with the LAM assays (Alex Stewart)
15 ADJACENT PROPERTIES Most of the adjacent ground has been taken as exploration permits. There are no
reported mineral occurrences or exploration activity on these permits.
16 MINERAL PROCESSING AND METALLURGICAL TESTING
The Property is an early stage exploration property. No metallurgical testing has been undertaken.
17 MINERAL RESERVE ESTIMATES The Property is an early stage exploration property. No mineral resource or reserve
estimates have been made.
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18 RELEVANT DATA AND INFORMATION The Property is an early stage exploration property. There is no additional relevant
data and information.
19 INTERPRETATION AND CONCLUSIONS 1) Artisanal mining has demonstrated a large zone of gold mineralization in soils and
weathered rocks, on the Property.
2) Geophysical, geochemical, and geological exploration has demonstrated gold mineralization on the Property is related to:
a) A zone of mafic (basalt) dykes (the “Dyke Zone”). b) The Dyke Zone is bounded and cut by faults parallel to the strike and offset
by faults at a high angle to the strike of the zone. c) The Paso Yobai Gold Zone (the “Main Gold Zone”) has been traced 6.5 km
by soil geochemistry and airborne magnetics and is variably exposed on surface by artisan miners for 3.6 km. Very high gold values in soil geochemistry mark the Main Gold Zone, which corresponds to a linear zone of high magnetic values, bounded by zones of low magnetic values.
d) The aeromagnetic and soil surveys show magnetic anomalies with corresponding gold anomalies parallel to the Main Gold Zone, which suggest parallel mineralized dykes.
e) The distribution of the parallel magnetic anomalies, which are interpreted to be dykes, may be controlled by structures at a high angle to the Main Gold Zone.
f) EM anomalies also parallel the Dyke Zone. These EM anomalies are interpreted as derived from deep sources, and are tentatively interpreted as derived from deep-seated bodies of sulphides.
g) Rock samples from the artisanal mine workings indicate gold mineralization is related to quartz veins in altered mafic dyke and altered (silicified) sandstone near the contacts of the dyke.
h) Gold in the artisanal workings appears controlled by post dyke structures. i) Gold occurs in veins associated with sulphides (pyrite) and as coarse
grained, free gold in veins without sulphides. j) Bonanza grades occur when the sulphide-free veins with visible gold are
superimposed on the veins containing pyrite. k) Paso Yobai has many similar characteristics to several large gold and
copper deposits associated with alkaline rocks, such as Porgera, Cripple Creek, Ladolam, and Palabora.
3) The initial drill program of 12 holes totalling 1,989.2 m, has indicated:
62
a) The dyke ranges from 5 to 40 m thick and continues to at least 100 m depth.
b) Gold occurs in an altered dyke and sandstones controlled by structural zones, breccias, veins, stock-works within the dyke, and within the altered sandstones near the contact of the dyke.
c) Coarse grained free gold giving bonanza assays has been found to depths of about 100 m, which suggests that much of the free gold is primary.
4) Drilling on the aeromagnetic and soil geochemical anomalies has demonstrated
that the gold mineralization is related to carbonate-quartz veins cutting the mafic dyke, and altered sandstones near the contact of the dyke. The gold mineralization including the bonanza grades continues to depths of ±100 m.
5) Although there are only 12 widely spaced drill holes, higher grade, gold
mineralization appears related to variations in the position of the dyke along strike that appear to be dilation zones. The current data indicates that the primary targets in the Main Gold Zone are plunging shoots of structurally controlled gold mineralization.
6) The initial work on the parallel aeromagnetic and soil geochemical gold anomalies
suggests that they are similar to the Main Gold Zone and controlled by structures at a high angle to the Main Gold Zone.
7) The parallel zones present targets similar to those on the Main Gold Zone.
However, multiple parallel zones close to the Main Gold Zone, or to each other, could constitute a target of a large volume of structurally controlled gold mineralization.
20 RECOMMENDATIONS Cargill recommends a two-phase exploration program with the scope and extent of
the second phase contingent on the results of the first phase.
1) The first phase of the exploration will consist of drilling the remaining drill targets (3,000 m) (Figure 20.1) and carrying out soil geochemistry, geology and trenching both to infill the existing grid and to extend the grid to the east and west to explore parallel dyke systems, summarized as follows.
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TABLE 20.1 PHASE ONE PROGRAM
Latin American Minerals Inc – Paso Yobai Project
Salaries and fees $150,000
Soil Sampling 6,000 Samples $50,000
Geochemistry and assaying $80,000
Drilling to complete testing of the established drill targets.
3,000 m $550,000
Reporting $20,000
Subtotal $850,000.00 Contingencies 10% $85,000
Total $935,000
2) The current information indicates a second phase of exploration is warranted. However, the exact scope of work will be based on the results of the Phase One Program. As currently envisioned, the Phase Two Program will consist of:
a) Geochemistry, trenching and mapping to better define the parallel dykes and to extend the Main Gold Zone along strike.
b) Drilling to test new targets developed on the parallel zones and along strike on the Main Gold Zone. Approximately 5,000 m of drilling will be required.
c) Definition drilling on the two best zones within the Main Gold Zone. Cargill estimates that about 12 drill sections with about 5,000 m of drilling will be required to test each zone.
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TABLE 20.2 PHASE TWO PROGRAM
Latin American Minerals Inc – Paso Yobai Project
Salaries and fees $450,000
Soil Sampling 4,000 Samples $45,000 Geochemistry and assaying $150,000
Drilling to complete testing of the established drill targets.
21 REFERENCES ANON, 2007, Report on a Helicopter-Borne Versatile Time Domain Electromgnetic
(VTEM) Geophysical Survey; Unpublished report for LAMPSA by Geotech Ltd. CARRASQUERO, S.; CANFOGLIA, M. E.; SHALAMUK B.; 1999. A Hydrothermal
Event Associated with the Alkaline Complex in Cerro Sarambi, Amancay, Paraguay. Mineral Deposits: Processing, Stanley et al.(eds). 1999 Balkema, Rotterdam.
22 SIGNATURE PAGE This report titled “Technical Report on Paso Yobai Project, Uraguay” prepared for
Latin American Minerals Inc. and dated February 15, 2008 was prepared by and signed by:
(Signed and sealed) Dated at Toronto, Ontario D. George Cargill, Ph.D., P.Eng February 15, 2008 Consulting Geological Engineer
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23 CERTIFICATE OF QUALIFICATIONS D. GEORGE CARGILL
I, D. George Cargill, as author of this report entitled “Technical Report on Paso Yobai Project, Uraguay” prepared for Latin American Minerals Inc. and dated February 15, 2008 do hereby certify that:
1. I am President with Cargill Consulting Geologists Limited
of Suite 501, 55 University Ave Toronto, ON, M5J 2H7.
2. I am a graduate of University of Toronto 1967 B.ASc. Queens University 1970 M.Sc. University of B.C.. 1975 Ph.D.
3. I am registered as a Professional Engineer in the Provinces of Ontario (Reg.#
06870018) and British Columbia (Reg. #8109). I have worked as a geological engineer for more than 35 years since my graduation. My relevant experience for the purpose of the Technical Report is:
Island Copper, Cu-Mo-Au Property B.C Technical Reports Expo Cu-Mo-Au Property B.C. Technical and Exploration Reports Catface Property, Cu-Mo Property, B.C. Due Diligence Report Tulsequah Chief Au Property B.C. Due Diligence Report Oyu Tolgoy, Cu Property, Mongolia NI 43-101 Report Ivanhoe Cu-Au Properties, Inner Mongolia NI 43-101 Report RTB Bor Cu-Au Property Serbia Due Diligence Report Aurora Au Property, Guyana NI 43-101 Report Peters Au Property, Guyana NI 43-101 Report Zalantun Au Project, China NI 43-101 Report Cu- Au Porphyry, Inner Mongolia NI 43-101 Report Cu-Au Porphyry , Heilongjinag Due Diligence Examination
4. I have read the definition of "qualified person" set out in National Instrument 43-101 (NI43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI43-101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI43-101.
5. I visited the Paso Yobai Project on October 2 to 4, 2007 and on January 5 to 9, 2008.
6. I am responsible for overall preparation/preparation of the Technical Report.
70
7. I am independent of the Issuer applying the test set out in Section 1.4 of National Instrument 43-101.
8. I have had no prior involvement with the property that is the subject of the Technical Report.
9. I have read National Instrument 43-101, and the Technical Report has been prepared in compliance with National Instrument 43-101 and Form 43-101F1.
10. To the best of my 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. Dated 15th day of February, 2008 (Signed) D. George Cargill, Ph.D., P.Eng.