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REPORT ON

LAURANI PROPERTY
DEPARTMENT OF LA PAZ, BOLIVIA

Prepared for South American Silver Corp.

Kurt T. Katsura Oregon RG # 1221

October 20, 2006

Kurt T. Katsura (RG) P.O. Box 51346, Eugene, Oregon 97405 (541) 485-0342
TABLE OF CONTENTS

TABLE OF CONTENTS ................................................................................................. ii


LIST OF FIGURES ......................................................................................................... iii
LIST OF TABLES ........................................................................................................... iii
1.0 SUMMARY ........................................................................................................... 1
2.0 Introduction and Terms of Reference: ..................................................................... 4
2.1 Terms of Reference ........................................................................................... 4
2.2 Purpose of Report ............................................................................................. 5
2.3 Sources of Information ..................................................................................... 5
2.4 Scope of Personal Inspection of the Property................................................. 5
3.0 Disclaimer:.................................................................................................................. 5
4.0 Property Location and Description........................................................................... 6
4.1 Property Location ............................................................................................. 6
4.2 Property Description ........................................................................................ 7
5.0 Accessibility, Climate, Local Resources, Infrastructure and Physiography:........ 8
5.1 Access ................................................................................................................. 8
5.2 Climate ............................................................................................................... 8
5.3 Local Resources................................................................................................. 8
5.4 Infrastructure.................................................................................................... 9
5.5 Physiography ..................................................................................................... 9
6.0 History: ..................................................................................................................... 10
7.0 Geologic Setting: ...................................................................................................... 12
7.1 Regional Overview .......................................................................................... 12
7.2 Local Geologic Setting .................................................................................... 13
7.3 Structure .......................................................................................................... 17
8.0 Deposit Types: .......................................................................................................... 18
9.0 Mineralization:......................................................................................................... 21
10.0 Exploration:............................................................................................................ 23
10.1 Geophysical Surveys:...................................................................................... 23
10.2 Geochemical Sampling: .................................................................................. 24
10.3 Targets ............................................................................................................. 25
11.0 Sampling Method and Approach: ......................................................................... 27
12.0 Sample Preparation, Analysis and Security:........................................................ 27
13.0 Data Verification:.................................................................................................... 28
13.1 Check Sampling .................................................................................................. 28
14.0 Adjacent Properties:............................................................................................... 29
15.0 Interpretation and Conclusions:........................................................................ 30
16.0 Recommendations:.................................................................................................. 31
17.0 References................................................................................................................ 32
APPENDEX I ................................................................................................................... 1
Laurani Assay Results for Exploration Targets as Listed in Report....................... 1
APPENDEX II................................................................................................................ 11
Certificate of Qualification......................................................................................... 12
Date and Signature Page ................................................................................................ 13

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LIST OF FIGURES
FIGURE 1 PROJECT LOCATION ......................................................................................................................... 3
FIGURE 2 PROPERTY MAP ............................................................................................................................... 6
FIGURE 3 VIEW OF LAURANI PROPERTY FROM ACCESS ROAD LOOKING TOWARD THE SOUTHWEST FROM NEAR
HIGHWAY 1, SHOWING THE MAIN ELECTRIC TRANSMISSION LINE IN FOREGROUND.............................. 10
FIGURE 4: VIEW OF ENTRANCE TO SOME OF THE OLD COLONIAL WORKINGS IN THE TORO AREA. ................. 11
FIGURE 5: LAURANI GEOLOGY MAP ............................................................................................................. 15
FIGURE 6: VIEW OF THE SAN GERONIMO VEIN LOOKING SOUTHWEST FROM NEAR TATAL PATA SHOWING THE
WIDE AREA OF INTENSE ARGILLIC ALTERATION. .................................................................................. 16
FIGURE 7: VIEW OF CERRO ALUNITA LOOKING TOWARDS THE SOUTH FROM CERRO LAURANI, NOTE THE
WHITE COLOR OF THE ALTERED ROCKS EXTENDING INTO THE FOREGROUND. ...................................... 17
FIGURE 8: VIEW LOOKING SOUTHWEST ALONG THE STRIKE OF THE SAN GERONIMO VEIN SHOWING SILICIFIED
RIBS IN THE FOOTWALL TO THE MINED VEINS. DUMPS FROM THE SAN GERONIMO ADIT ARE SHOWN IN
THE DISTANCE...................................................................................................................................... 19
FIGURE 9: VIEW OF THE CARNAVALITO AREA LOOKING TOWARDS THE NORTHEAST FROM CERRO ALUNITA.
............................................................................................................................................................ 20
FIGURE 10: MAP SHOWING EXPLORATION AREAS WITHIN THE LAURANI PROJECT. ....................................... 26

LIST OF TABLES
TABLE 1. SUMMARY OF SELECTED RESULTS FROM CORRIENTE DRILLING AT CERRO ALUNITA AND
CARNAVALITO AREAS ......................................................................................................................... 22
TABLE 2. SELECTED SAN GERONIMO SURFACE AND UNDERGROUND VEIN SAMPLE INTERVALS ........... 24
TABLE 3. CHECK SAMPLES GOLD VALUES ............................................................................................... 28
TABLE 4. CHECK SAMPLES SILVER VALUES ............................................................................................. 29

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1.0 SUMMARY

The Laurani property is located 107 kilometres (km) south of La Paz, Bolivia near
Patacamaya, and approximately 5 km west of the main highway between La Paz and
Oruro. The geological setting at Laurani is similar to Newmont Mining Corporations
million plus ounce Kori Kollo gold mine which is located approximately 55 km to the
southeast of Laurani in a similar geological setting at the Soledad caldera complex
(Redwood, 1987). South American Silver Corp. (SASC) through its wholly owned
subsidiary Compania Minera Laurani S.A. (CML) has identified four exploration
targets at Laurani which include: 1) the San Geronimo/ Tatal Pata vein systems, 2)
Carnavalito/Toro stockwork vein area, 3) Cerro Alunita disseminated mineralization, and
4) a buried Porphyry copper-gold system.

Recent geologic mapping and geochemical sampling of rock and vein outcrops and from
underground workings, suggest that the Laurani property has the potential to host both
high-grade silver-gold mineralization within the area of NE-SW striking veins in the San
Geronimo/Tatal Pata area, bulk tonnage stockwork silver-lead-zinc-gold mineralization
in the Toro/Carnavalito area, disseminated and breccia-hosted silver-gold-lead-zinc
mineralization at Cerro Alunita, and the potential for a buried porphyry copper system.
These exploration targets at Laurani have the potential to host significant gold and silver
mineralization, comparable in size and grade to other deposits in the northeastern
Altiplano of Bolivia, such as the multi-million ounce gold deposit at Kori Kollo, located
55 km to the south in a similar geological setting, or bonanza-style gold veins such as El
Indio in Chile.

At Laurani, the main historically mined veins occur within an extensive alteration zone
measuring approximately 1.5 x 1.0 km, which is bordered on the north by the laterally
extensive San Geronimo vein system and encompasses the steeply-dipping veins in the
Tatal Pata area. The principal veins in the Laurani district include the San Geronimo,
Tatal Pata, and Carnavalito, and there are numerous subparallel and crosscutting
structures that locally converge and split along the 1.5 km strike length of the vein
system. The epithermal veins were mined for silver, copper, and gold from the Pre-
Colonial times to as recently as 1975 (Lane, 1996). Numerous pits and underground
workings show that the veins were selectively exploited, in general, only to shallow
levels of less than 70 metres (m) with a maximum depth of 200 m below their apex on
the Tatal Pata ridge. Recent exploration work suggests that the eastern extension of the
San Geronimo and Tatal Pata vein system horsetails into a stockwork-style of
mineralization in the Toro/Carnavalito area where there is potential for a lower-grade
bulk-tonnage target.

The Cerro Alunita area is located approximately 1.2 km south of the Tatal Pata area and
consists of an elongate ridge formed by resistant quartz-alunite altered flows and
breccias. Previous exploration efforts identified Cerro Alunita as a bulk-tonnage silver-
gold target with lead and zinc, and included a drill intercept of 14 m that averaged 323
gpt silver and 0.1 gpt gold from breccias and disseminated mineralization in altered

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rocks. This area has been a primary focus of previous exploration work in the Laurani
district. The fourth target area is a potential porphyry copper-gold system beneath the
west central portion of the Laurani volcanic complex which is suggested by geophysical
surveys, alteration mapping, and some drilling data. These four exploration targets
represent the potential for the discovery of significant gold-silver mineralization at
Laurani, in addition there are several other areas that continue to be explored by SASC
around the western and southern perimeter of the caldera complex.

The Laurani property is located in the Altiplano, a North-South trending structural basin
that formed during the Cretaceous as a back arc basin behind the Meso-Cenozoic Andean
volcanic arc which developed along the entire length of the South American continental
margin, south of Ecuador. This back arc basin received sedimentation during the late
Cretaceous through the Tertiary. The underlying basement rocks consist of folded
Precambrian rocks on the west, and Paleozoic rocks on the east, which are
unconformably overlain by red bed sediments with minor intercalated Cretaceous marine
sediments. The rocks were deformed during at least three orogenic episodes during the
Cenozoic, prior to being intruded by north-south trending linear zone of Miocene age
volcanic complexes that consist of extrusive volcanic flows and tuffs, and shallow
intrusive porphyries which are generally high potassium calc-alkaline to shoshonitic in
composition. The majority of the rocks are intermediate and dacitic to rhyolitic in
composition, and the volcanic complexes commonly exhibit epithermal Ag-Au-Cu-Pb-
Zn-As-Sb mineralization. In the northeastern Altiplano of Bolivia, mineralization is
observed to be temporally associated with stages of dacitic magmatism and is part of the
polymetallic belt of the central Andes that extends from Argentina to Peru. This
metallogenic belt includes deposits of both quartz-adularia and acid sulfate epithermal
systems. Some of the acid sulfate systems, similar to Laurani include: La Coipa and El
Indio, Chile; Kori Kollo in Bolivia; and Julcani in Peru. Typically, these acid sulfate
systems exhibit extensive argillic and quartz-alunite alteration surrounding complex vein
structures that contain high sulfide mineral assemblages that include enargite, tennantite,
barite, and quartz.

The rocks exposed in the Laurani project area consist of basement Paleozoic sediments
that are unconformably overlain by Cretaceous to Tertiary age red bed sediments which
have been locally warped upwards during the mid-Miocene development of the Laurani
volcanic complex. The Laurani volcanic complex is composed of andesitic to rhyodacitic
volcanic flows, tuffs and breccias and their subvolcanic intrusive feeders, and is generally
bound by a series of arcuate faults that define an oval to circular collapse feature into
which the intrusions and domes formed. Extensive areas of pervasive and structurally
controlled sericitic and argillic alteration occur in the central portion of the volcanic
complex associated with areas of hydrothermal systems and overlying a possible buried
porphyry intrusion. Spatially associated with the core of the volcanic complex are
extensive vein systems and areas of pervasive argillic and alunite alteration which
indicate a large acid sulfate epithermal system developed during the waning stages of
magmatism at Laurani.

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The principal veins at Laurani occur in the area bound generally on the north by the SW-
NE striking San Geronimo vein system and includes the complex veins in the Tatal Pata
area. These veins contain a mineral assemblage consisting of quartz, barite, enargite and
tennantite/tetrahedrite surrounded by a selvedge of silicification and barite veining which
is surrounded by a broad envelope of intense argillic and quartz-alunite alteration. The
veins themselves exhibit several stages of mineralization, and based on historical records

Figure 1 Project Location

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The Laurani property is located within a mid-Miocene volcanic center in the northeastern
Altiplano of Bolivia, and is part of the polymetallic belt of the central Andes that include
volcanic-hosted epithermal precious metal deposits, oriented along a north-south trend,
between Argentina and Peru. The epithermal deposits in this belt contain both quartz-
adularia and acid sulfate systems, some of the acid sulfate systems similar to Laurani,
include: La Coipa and El Indio, Chile; Kori Kollo in Bolivia; and Julcani in Peru.

4.2 Property Description

The Laurani gold-silver property is located in the Department of La Paz in western


Bolivia, approximately 107 km south of the capital of La Paz. The total property position
controlled by the CML consists of approximately 1,750 ha. The land is held as
Pertenencias and Concessions (Cuadriculas).

Claim Name Type Owner ha


SORIA SANJINES
EDUARDO Pertenencia GONZALO 400
SORIA SANJINES
SANTIAGUITO Pertenencia GONZALO 198
SUCESIVAS SORIA SANJINES
LAURANI Pertenencia GONZALO 700
GONZALO SORIA
SANJINES y GUILMA
GAPOSAZA Pertenencia SORIA SANJINEZ 194
JOSE GONZALO SORIA
CEBEEL Cuadriculas SANJINES 1,125

Several of the Pertenencias overlap and the Cuadriculas partially overlap all the
Pertenencias, such that the total area held is approximately 1,750 ha.

These can be maintained indefinitely by paying annual dues in January of each year. The
fee is US$1.00 per hectare per year for the first five years which rises to US$2.00 per
hectare per year in the sixth year.

GMC, through its then, indirect, wholly owned Bolivian subsidiary, Compania Minera
General Minerals (Bolivia) S.A. entered into an option agreement dated September 10,
2003 and then in December, 2003 transferred the property to its wholly owned subsidiary
CML. The option agreement (the Soria Agreement) relates to the entire 1,750 ha land
package. Pursuant to the Soria Agreement, CML has the right for a period of 5 years from
September 3, 2003 to purchase the claims at any time upon payment to the owner of
US$1,200,000, provided that each of the annual or biannual payments as required under
the option have been paid as of the date of the claim purchase. If the claims are purchased
all future annual and biannual payments are cancelled. If the claim purchase is made at
the end of the 5 year period, the total annual and biannual payments would be $230,000.
Payment of $5,000 was made on September 4, 2003; $7,500 was made on August 17,

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2004; $7,500 was made on March 1, 2005; $15,000 was made on August 31, 2005;
$15,000 was made on February 22, 2006; $30,000 was made on August 24, 2006.
Additional payments are required as follows:

Payment Date Amount


March 10, 2007 US$30,000
September 10, 2007 US$60,000
March 10, 2008 US$60,000

CML is required to pay all amounts required to protect and maintain the mineral rights in
the area of the property. If CML undertakes production during the option period then it
must pay a 4%NSR royalty or the annual or biannual payment, whichever is the larger.
After purchase of the claims, no royalty is payable.

5.0 Accessibility, Climate, Local Resources, Infrastructure and


Physiography:

5.1 Access

Access to the property is gained overland via Highway 1, the main paved highway
linking La Paz and Oruro, to point approximately 20 km south of Patacamaya, thence by
improved dirt road approximately 5.0 km west to the Laurani property.

5.2 Climate

Climate is typical for the Bolivian Altiplano, with cool to moderate summers and cool
dry winters. Winters (May- August) are cool with temperatures that range from -2o C at
night to 10-12o C during the daytime, and are generally dry, with occasional rare
snowfall. Summers (November March) have moderate temperatures that range from 5o
C at night to 12-25o C during the daytime. Rainfall is heaviest during late December
through March, averaging approximately 90 mm in December, 130 mm in January, and is
lightest in June and July where rainfall averages approximately 10 mm per month.
Scattered subsistence farm plots are found throughout the Laurani area, and are worked
by locals during the rainy season along with livestock grazing.

5.3 Local Resources

The property is readily accessible from La Paz or Oruro, where there is a capable supply
of any labor, equipment, or service requirements for conducting exploration or mining
related activities. The town of Patacamaya lies along Highway 1, approximately 20 km
to the northwest of the property, and could provide a temporary source for labor,
supplies, and accommodations to support an exploration program. The property is easily
accessible from the paved highway via approximately 10 km of improved dirt access

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roads. Patacamaya is six hours from port facilities using the international highway
between La Paz and Arica, Chile.

5.4 Infrastructure

Currently there is a nominal existing infrastructure developed on the property, with a


local electric power line that leads up to a communications tower located within the
property that is maintained year round, and several kilometres of dirt access roads. The
status of available water is unknown, but in the recent past it was of sufficient quantity to
sustain limited mining and milling facilities near the property (Schneider-Scherbina,
1961). Several small springs and seeps were observed on the property and near the
village of Sipe Sipe, which may have the potential for being developed as additional
water sources. The property is readily accessible via a dirt road (approximately 5.0 km)
from both the main paved Highway 1 linking La Paz and Oruro, and the railroad linking
La Paz to Oruro. Electric power lines and a gas pipeline pass within approximately 5 km
to the east of the property. There are several small villages located within the property,
including Santiago de Laurani and Sipe Sipe, which may provide sources for casual labor
to support exploration activities.

5.5 Physiography

The Laurani property encompasses a subcircular group of isolated hills that rise above the
broad undulating plain of the Altiplano in Bolivia. The hills rise abruptly 300-450 m
above the surrounding flat Altiplano to elevations ranging from 3,800-4,380 m above
mean sea level (amsl). These hills constitute the dissected remnants of a mid-Miocene
stratovolcano complex, which is cut by a series of arcuate fault structures related to the
development and collapse of the volcanic system, and have been dissected by erosion.
The hill slopes are covered by a sparse cover of grasses and brush, and is currently
utilized for grazing and in scattered plots, the raising of crops by locals living in

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Figure 3 View of Laurani Property from access road looking toward the Southwest from near
Highway 1, showing the main electric transmission line in foreground.

several small villages within the property boundaries. Of particular interest for
exploration, are areas that are devoid of vegetation which mark the surface traces of the
major vein structures and areas of intense argillic alteration, a shown in Figure 3.

6.0 History:
Copper-silver mineralization was discovered and mined during the Spanish Colonial
times, and there is also evidence of pre-Columbian mining of silver at the property.
Some of the earliest workings in the district, dating from the Colonial period, are located
in the Toro area as shown in Figure 4. The majority of the underground workings (4,000
m), in the district were completed prior to 1920, and between 1920 and 1938, several
companies mined high-sulfide copper ores that were treated by the flotation process at
Vizcachani and mill facility built at Sipe Sipe (Schneider-Scherbina, 1961). A bulk
sample collected as a representative sample of 15,000 tons produced in 1938 is reported
to have averaged 2.1 gpt gold, 200 gpt silver, and 2.9% copper (Schneider-Scherbina,
1961). After 1938, contract miners worked high-grade veinlets exposed in the existing
workings and the dumps, hand sorted enargite-rich ore, and produced up to 60-80 tons
per month of ore that averaged 22-26% copper (Schneider-Scherbina, 1961). By these
methods, the mines in the Laurani area produced silver and copper ore until as recently as
1975 which was treated at the local flotation mill or shipped directly to the smelter (Lane,
1996).

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Figure 4: View of entrance to some of the old Colonial workings in the Toro area.

United Mining Corporation conducted exploration on the Laurani property between


1987-1991 which consisted of mapping, surface and underground sampling, 23 reverse
circulation drill holes (2,000 m), and a limited amount of underground development in
the existing mine workings. The work by United Mining focused on the Carnavalito,
Tatal Pata and Toro vein systems, and reported a resource of 1.89 million tonnes of oxide
gold ore averaging 2.4 gpt gold, 220 gpt silver, and 1.0% copper within the area of the
previously mined gold veins in the Carnavalito, Tatal Pata, and Toro areas (Melbye,
1989; Lane, 1996). CML recently gained access to a majority of this data. This resource
is not 43-101 compliant and is not relied upon by CML.

Emicruz (RTZ) conducted exploration between 1992-1994 at Laurani that included


airborne geophysical surveys, mapping, sampling, and completed six diamond core holes
on the property that totalled 2,950 m of drilling (Pothorin, 1997a). The work by Emicruz
tested areas of greater than 500 m depth surrounding the major vein systems and two
holes (LDD-5 and LDD-6) tested altered areas and tourmaline breccias they interpreted to
be associated with a possible buried porphyry system (Emicruz, 1994). CML has limited
access to the Emicruz data, however, some data and the original drill core was available
to Corriente Resources during their tenure on the property (Pothorin, 1997b).

Corriente Resources, leased the Laurani property between 1996-1998 and conducted a
program of mapping, sampling, geophysical surveys, trenching, and drilling that
identified a number of mineralized target areas in the eastern portion of the district.

11
During 1997 Corriente Resources entered into a joint venture with Ascot Resources Ltd.
and completed a program of 15 reverse circulation drill holes, totalling 4,412 m, where
the primary focus was on areas of pervasive quartz-alunite alteration and breccias in the
Cerro Alunita area. The positive exploration results by Corriente Resources in this area
have not been followed up.

GMC announced the acquisition of the Laurani silver-gold-copper target in Oct. 2003.
Geological mapping has been completed within the central portion of the property and
549 channel and chip samples have been collected for geochemical analysis from the
surface and 191 samples from underground exposures. The geochemical sampling results
from the Laurani project area are encouraging and include: 160 samples with values
greater than 1.0 gpt gold, where the highest surface vein samples assayed 21.6 gpt gold
and the highest underground vein sample assayed 85.1 gpt gold. Silver values include
158 samples with greater than 100 gpt silver, with the highest surface vein sample
assayed 4,515 gpt silver and the highest underground vein sample assayed 3,360 gpt
silver.

7.0 Geologic Setting:


7.1 Regional Overview

The Laurani property is located in the northeastern Altiplano, a North-South trending


structural basin that formed during the Cretaceous between the Paleozoic fold belt of the
Cordillera Oriental, and the Meso-Cenozoic Andean arc, which forms the Cordillera
Occidental. The Andean orogenic cycle began in the early Mesozoic with the breakup of
Gondwanaland, and the development of a magmatic-arc and back-arc basin along the
entire length of the South American continental margin, south of Ecuador. This back arc
basin became closed during the late Cretaceous through early Cenozoic as the Cordilleran
magmatic arc migrated eastward. The Altiplano basin began development as isolated
grabens near Lake Titicaca, and continued to expand southward between two north-south
trending growth faults. Initial deposition in the Altiplano basin consisted of red bed
sediments intercalated with two Cretaceous marine transgressions, and then continued
with red bed sedimentation into the Tertiary. Basement rocks along the eastern edge of
the Altiplano consist of Paleozoic sediments, while the western edge consists of
Precambrian rocks. Compression and folding of the rocks occurred during the Quechua
1, 2, and 3 phases, with unconformities developed primarily along the western edge of
the basin, due to compression. A north-south trending linear zone of Miocene age
volcanic complexes formed along the eastern edge of the northern Altiplano, and are
thought to be in part controlled by subsidiary structures to the regional growth faults,
such as the Coniri Fault. These volcanic complexes consist of extrusive volcanic flows
and tuffs, and shallow intrusive porphyries that are generally high potassium calc-alkaline
to shoshonitic in composition. The majority of the rocks are dacitic to rhyolitic, with
minor quantities of mafic rocks observed. Epithermal Ag-Au-Cu-Pb-Zn-As-Sb
mineralization has been noted to be temporally associated with stages of dacitic

12
magmatism in the northeastern Altiplano, and is a part of the polymetallic belt of mineral
deposits in the central Andes (Redwood and MacIntyre, 1989).

The rocks exposed in the Laurani project area consist of basement Paleozoic sediments
that are unconformably overlain by Cretaceous to Tertiary age red bed sediments which
have been warped upward adjacent to the Laurani volcanic complex. A series of arcuate
faults define a roughly oval structural depression in which the Laurani volcanic complex
developed, and these faults commonly form the contact between older Tertiary, Capaja
Roja red beds and the Miocene volcanic units. Spatially associated with the central
portion of the volcanic complex are an extensive system of epithermal veins, and in the
southeast quadrant an extensive area of pervasive argillic and quartz-alunite alteration.
These areas are the result of large acid sulfate hydrothermal systems that developed
during the waning stages of magmatism at Laurani.

7.2 Local Geologic Setting

The oldest rock units exposed in the Laurani project area consist of dark colored Silurian
shales, siltstones, and sandstones of the Llalagua, Uncia, and Catavi Formations, that are
part of the basement rocks of the eastern Altiplano. The Paleozoic sediments crop out
among the small hills surrounding the volcanic complex, and are unconformably overlain
by poorly consolidated Tertiary red bed conglomerates, sandstones, and siltstones that
have been correlated with the Chuquichambi Formation (Jimenez et al, 1993). Local
warping and uplift associated with development of the volcanic complex, and the
surrounding arcuate ring faults have exposed the sedimentary rocks outside of the main
volcanic center, where they do not appear to be mineralized (Mateo, 2004). The Sipe
Sipe Fault is near the village of the same name, in the northern portion of the property,
and forms one of the major ring fault contacts between the outlying red bed sediments
and the Miocene volcanic and intrusive complex.

In the central portion of the Laurani project, the volcanic rocks consist of a sequence of
extrusive trachy-andesite and dacite flows, breccias, intercalated tuffs, agglomerate, and
tuffaceous sediments that were deposited within a topographic depression. These rock
units are relatively restricted outside the ring fault structures and are not commonly
observed to overlie the red bed sediments; therefore it appears that this volcanic activity
was not explosive, as might be expected with a typical caldera complex. The oldest
volcanic unit in the Laurani complex, consists of crystal lithic tuffs and intercalated
tuffaceous sediments that exhibit sedimentary features indicating they were deposited in a
lacustrine environment within the collapsed feature in the volcanic complex (Mateo,
2004). Overlying this unit is an andesitic tuff and a dacite flow. The lower and upper
members of the Capaja andesite flows unconformably overlie the older volcanic units,
the lower member commonly consists of agglomerates and fragmental flows. Both
members of the Capaja andesite are exposed along the upper elevations of Cerro Capaja,
where they are in part underlain by intrusive stocks and dikes including the Cachani
and Pucara porphyritic andesite units. Locally, dikes and pipe-like breccias crosscut
the volcanic sequence and are believed to be feeders to some of the extrusive units, in
particular fine grained dacite and andesite flows that locally cap the higher hills, such as

13
Cerro Capaja. Previous authors (Enns and Findlay, 1996)) have noted that the volcanic
edifice at Laurani was a flow dome stratovolcano, and note that extensive tuff units do
not extend beyond the volcanic complex, as might be expected for a typical caldera
setting, however, a collapse feature is distinctly present at Laurani.

The second phase of magmatic activity consists of subvolcanic intrusions that were
feeders to resurgent domes and flows in the overlying volcanic pile. In the northeastern
end of the property, the Laurani Fault is subparallel to the outlying ring structures, and
appears to have been important for the emplacement of the porphyritic andesite Cantera
intrusion, and a subsequent phase of porphyritic dacite (quartz eyes) intrusion that is
interior to the older andesite body. These two intrusions constitute the most prominent
intrusive units exposed at Laurani and are considered to be the feeder system to a large
resurgent flow dome complex that developed during the later stages of stratovolcano.
The earlier andesite dome complex appears to have formed in the northeast sector of the
volcanic complex, and the younger porphyritic dacite dome possibly developed later in a
more central position to the volcanic edifice. The emplacement of the intrusions appears
to temporally coincide with subsidence of the central volcanic complex along the arcuate
ring faults that define a 4x6 km depression. Age determinations from the andesite and
dacite intrusions in the Laurani volcanic complex are reported to be 8.4 Ma (Redwood
and MacIntyre, 1989). The third or youngest intrusive phase at Laurani consists of fine-
grained dacite dikes that appear to cut all other rock units and are particularly common in
the Cerro Alunita and Cerro Capaja areas.

Central to the volcanic complex, are diatremes and volcanic breccia pipes, up to 200 m in
diameter, which appear to have formed during explosive degassing and are observed to
cut all overlying volcanic units. One of these breccia pipes is located in the Tatal Pata
area, and contains subrounded clasts, suggesting possible prolonged or recurrent
explosive events associated with the emplacement of the andesite and porphyritic dacite
intrusions. Another large diatreme is located on the eastern flanks of Cerro Capaja,
where it crosscuts flows in the upper volcanic pile, and may be associated with
emplacement of an andesite or dacite intrusion, or possibly a younger buried porphyry
stock.

Erosion has dissected the original volcanic edifice, and the present topography has
exposed the central core of the volcanic complex, with the highest point being Cerro
Capaja, which is composed of relatively unaltered rocks on the flanks of the volcano that
have resisted erosion better than the surrounding fractured and argillic altered rocks near
the central core. At Cerro Alunita, the silicified rocks form a resistant elongated ridge,
which previous workers (Lopez-Velasquez and Jimenez, 1997) concluded formed at a
relatively shallow depth below the paleosurface of the active hydrothermal system. This

14
Figure 5: Laurani Geology Map

suggests that there has been some dissection of the volcanic complex prior to the
mineralization episode at Cerro Alunita.

Detailed geologic mapping and sampling by CML, are ongoing and continue to focus on
refining a detailed understanding of the complex stages of mineralization. The primary
focus during 2006 has been to open and explore the extensive underground workings in
the San Geronimo/Tatal Pata and Toro areas. Approximately 2.0 km of underground
workings have been examined to date, with 191 samples collected from underground
exposures of veins and structures. This work is continuing to provide important
information to unravel possible structural and geochemical controls to mineralization.

Extensive areas of pervasive hydrothermal alteration occur within the central Laurani
volcanic complex, in the northern section surrounding the historically mined vein
systems, to the south surrounding Cerro Alunita, and to the west a broad area of sericitic
and argillic alteration extends to the west towards Cerro Laurani. The main areas of
alteration coincide with the large exposed bodies of andesite and dacite porphyry, which
were emplaced as subvolcanic intrusions in the Tatal Pata area. Geophysical surveys

15
conducted by Corriente Resources in 1997 and 1998 in the eastern portion of the district
show a prominent I.P. chargeability high which is open to the west and coincides with the
area of pervasive alteration within the volcanic complex. This data also supports the
concept of a mineralized buried porphyry system, where pervasive alteration surrounds
the tourmaline breccias that were drill targets by Emicruz on the flanks of Cerro Laurani.
In the Cerro Alunita area, the extensive quartz-alunite alteration has been interpreted to
be a cap overlying an extensive sulfotaric hydrothermal system, which may have been
fueled in part, by a buried porphyry or other unexposed intrusive body.

Figure 6: View of the San Geronimo vein looking Southwest from near Tatal Pata showing the wide
area of intense argillic alteration.

Argillic alteration occurs as broad and overlapping envelopes to the epithermal veins in
the San Geronimo and Tatal Pata areas. Microscopic studies conducted from altered
rocks indicate that the argillic alteration consists of fine-grained kaolinite, secondary
quartz, and minor amounts of jarosite, alunite, and original pyrite (Enns and Findlay,
1996a). These areas are often devoid of vegetation, as shown in Figure 4. In the Cerro
Alunita area argillic alteration is pervasive and is further overprinted by quartz-alunite
alteration and hydrothermal breccias.

The large alteration area surrounding Cerro Alunita consists of pervasive argillic
alteration with discrete but irregular areas of silicification and replacement by vuggy
quartz and alunite. These areas typically form lumpy, resistant outcrops and ledges, and
appear to be preferentially developed within the dacite units. The quartz-alunite altered
rocks exhibit nearly complete destruction of the original textures, and are replaced by
admixed fine-grained quartz with drusy lined cavities. Locally, fine-grained and bladed
alunite aggregates often preserve pseudomorphs of original feldspar sites. Some samples
of quartz-alunite altered rocks are reported to consist of up 30% alunite (Enns and

16
Findlay, 1996a). Quartz-alunite alteration is also common as thin to podiform ledges and
ribs within the extensive vein system of the San Geronimo and in the Tatal Pata areas.
Individual ledges extend up to 250 m long and are observed to be subparallel and form
selvedges along the areas previously mined for high-grade enargite ores, such as along
the main San Geronimo vein where they commonly form ribs adjacent to the mined open
stopes. These resistant ribs contain significant values in gold and silver and characterize
the primary target for mineralization in the San Geronimo/Tatal Pata area.

Figure 7: View of Cerro Alunita looking towards the south from Cerro Laurani, note the white color of the
altered rocks extending into the foreground.

Known styles of mineralization occur as four distinct types at the Laurani property; 1)
areas of gold-silver mineralization within the San Geronimo/Tatal Pata vein systems, 2)
veins and stockworks exposed in the Toro/Carnavalito area, and 3) disseminated
mineralization within pervasive areas of quartz-alunite alteration and breccias in the
Cerro Alunita area, and 4) a buried porphyry copper-gold system beneath the central
portion of the Laurani volcanic complex, which was indicated by the work conducted by
Emicruz and supported by the geophysical work conducted by Corriente Resources. In
addition, there are several largely unexplored potential target areas that exhibit similar
extensive argillic alteration, quartz alunite alteration, veins, and breccias, located along
the southern and western portions of the Laurani property, such as Millokowa.

7.3 Structure

The Laurani property is located in the Altiplano, an extensive North-South trending


structural basin that formed during the Cretaceous as a back arc basin behind the Meso-
Cenozoic Andean volcanic arc. The Altiplano basin is underlain by folded Precambrian

17
rocks on the west, and Paleozoic rocks on the east, and received sediments during the late
Cretaceous through the Tertiary consisting primarily of red bed sediments that
accumulated in a terrestrial environment. The Altiplano was deformed during at least
three orogenic episodes during the Cenozoic which formed broad gentle folding, prior to
being intruded by north-south trending linear zone of Miocene age volcanic complexes.
The Laurani volcanic complex has been dated as mid-Miocene and consists of extrusive
volcanic flows and tuffs, and shallow intrusive porphyries of andesite to dacite
composition. Prior to and coincident with the Laurani volcanic complex, the underlying
sediments were warped upwards, followed by local subsidence along arcuate ring faults
that define an oval to circular depression in which the Laurani volcanic complex formed.
These faults were likely reactivated as normal faults throughout the history of the igneous
complex. The andesite and dacite porphyry intrusions were emplaced along sympathetic
structures to the arcuate fault zone, which developed internal to the volcanic complex,
with a strong radial component, centered west of the Tatal Pata area. The combination of
the arcuate and radial structures have contributed to the complex veins and stockworks
observed in the Tatal Pata area. Further study of detailed structures may be useful to
determine the importance of this radial array as an important control to mineralization.

8.0 Deposit Types:


The potential mineral deposits identified at Laurani property are associated with an acid
sulfate epithermal system that formed during the waning stages of magmatism and a
possible subvolcanic intrusion. Chalcedonic veining, indicative of a possible hot springs
component to the mineralizing system has been observed on Cerro Capaja (Winter,
1995). Historic production and previous exploration has focused primarily on the
epithermal veins in the San Geronimo/Tatal Pata and Toro/Carnavalito areas and the
extensive area of surface alteration at Cerro Alunita. The presence of a porphyry copper-
gold system is suggested by alteration mapping, geophysical data, and interpretations
from previous drilling.

18
Figure 8: View looking southwest along the strike of the San Geronimo vein showing silicified ribs in the
footwall to the mined veins. Dumps from the San Geronimo adit are shown in the distance.

The veins that were historically mined for copper and silver at Laurani have only been
exploited to relatively shallow depth, generally less than 70 m below the surface and the
primary ores mined were high-sulfide copper portions of the veins (Schneider-Scherbina,
1961). The extensive vein systems have not been systematically explored to determine
the extent of additional economic grades and tonnage that might exist along known and
subsidiary veins structures.

Previous exploration by United Mining reported an underground reserve of 1.89 million


tons of oxide ore in the veins that grade 1% copper, 220 gpt Silver, and 2.4 gpt gold, this
reported reserve is not 43-101 compliant and is not relied upon by CML. This reserve
was identified along underground workings in the San Geronimo/Tatal Pata area, and is
comparable to the average tenor of the high-sulfide ore historically mined from these
veins. Recent sampling by CML, have identified structures within the San
Geronimo/Tatal Pata vein system that assay up to 85.1 gpt gold across vein structures
measuring 1.0 m wide. These samples were taken underground across true widths and
are representative of the gold and silver values present in the veins, as shown in
Appendix I. Recent geological mapping and sampling suggest that some of the high-
grade gold and silver mineralization is a separate stage of mineralization from the high-
sulfide copper veins, and this represents a very significant exploration target at the
Laurani property, which has largely been ignored by previous exploration efforts.

19
Figure 9: View of the Carnavalito area looking towards the northeast from Cerro Alunita.

The mineralization in the Toro/Carnavalito area is essentially an eastern extension of the


vein system in the San Geronimo/Tatal Pata area however, the structures horsetail out
into a broad stockwork system, this was also noted by earlier workers in the area
(Schneider-Scherbina, 1961). The results from recent geochemical sampling in the
Toro/Carnavalito area suggests that the vein mineralization has relatively higher
associated lead and zinc values and lower copper values with the gold and silver than in
the main veins to the west, and that the silver to gold ratios are relatively higher. Some of
the geochemical sampling results are shown in Appendix 3. This suggests that there may
be a broad metal zoning within the epithermal system. The primary target in the
Toro/Carnavalito area is to identify areas of mineralized stockwork veining that contain
economic grades of silver-lead-zinc-gold mineralization for bulk-tonnage mining.

At Cerro Alunita there is the potential for large tonnage (10-90 Mt, based on similar
deposit types), as gold and silver mineralization hosted by breccias and disseminated
within the area of pervasive quartz-alunite alteration. This style of mineralization has
similarities to that mined at the Kori Kollo deposit, approximately 55 km to the south of
Laurani, where the gold occurs with disseminated sulfides and as fracture filling veins
and veinlets in argillic altered rocks beneath a silica cap. It has been reported that the
Kori Kollo ore deposit grades 1-2 gpt gold and as high as 172 gpt silver (Erickson and
Cunningham, 1993). A review of the Corriente Resources drilling and trench sampling

20
data show that intervals of up to 17 m containing values of up to 55.9 gpt silver in LD 98-
4 and 14m averaging 323 gpt silver and 0.1 gpt gold in LRC 97-9. Some of the recent
geochemical sampling results are shown in Table 1.

A potential porphyry copper system was suggested by previous workers (Sanjines,


Hofstra, and Barrera, 1997), to underlie the Laurani volcanic complex in the areas of
pervasive sericitic and argillic alteration. It is understood that the focus of exploration by
Emicruz was to test the potential for a buried porphyry system at Laurani, and they
identified areas of alteration and tourmaline crackle breccias on the flanks of Cerro
Laurani, that were tested by two diamond drill holes in 1992 (Emicruz, 1994).
Unfortunately, CML has limited access to this data. However, recent geochemical
sampling in surface expressions of the buried porphyry target show slightly elevated
levels of molybdenum, associated with pervasive sericitic alteration areas, an observed
increase in pyrite, which supports the possibility of a mineralized porphyry system
beneath this area. Some of the recent geochemical sampling results are shown in
Appendix I.

9.0 Mineralization:
Geologic mapping and geochemical sampling of rock and vein outcrops, suggest that the
Laurani property has the potential to host high-grade silver-gold mineralization within the
area of NE-SW striking veins in the San Geronimo/Tatal Pata area, with potential for
silver-lead-zinc-gold as disseminated mineralization beneath areas of quartz-alunite
alteration at Cerro Alunita. In addition, there are several other prospective alteration
areas scattered along the southwestern quadrant of the property that await further work,
with the potential for developing additional targets.

Previous workers in the district have also suggested that a porphyry copper system may
lie beneath the Laurani district, as a late stage of magmatism within the volcanic
complex, and may underlie Cerro Alunita (Lopez-Velasquez and Jimenez, 1997). The
potential for known targets at Laurani to host gold and silver mineralization is
comparable to other deposits in the northeastern Altiplano of Bolivia, such as the multi
million once gold deposit at Kori Kollo, which is located 55 km to the south in a similar
geological setting.

In the San Geronimo/Tatal Pata area, the principal veins are generally oriented NE-SW
and define a 1.0 x 1.5 km area of extensive coalescing veins and alteration, with the vein
systems possibly extending further beyond this core area. The veins have been explored
underground with a total of approximately 4.0 km of underground workings to a depth
reported to be 200 m below their apex (Enns and Findlay, 1996), however most of the
workings are less than 70 m below the surface Schneider-Scherbina, 1961). The mined
sections were reported to contain abundant pyrite, enargite, and minor amounts of
tennantite/tetrahedrite, bornite, chalcopyrite, sphalerite, galena, and cassiterite, with
quartz, barite, and alunite as gangue minerals (Schneider-Scherbina, 1961). Large ribs

21
and ledges of quartz-alunite alteration cut by barite veining are observed to be subparallel
to the San Geronimo vein, and some of these show highly anomalous values of 85.1 gpt
(sample no. 79851) and 21.6 gpt in gold (sample no. 80519) and 1,145 gpt silver (sample
no. 80522), as shown in Appendix I.

Early work in the Toro/Carnavalito area describe numerous stockwork veining exposed
in the old Colonial surface workings that exploited narrow veins and veinlets which have
been characterized by relatively lower copper and gold values, but higher grade silver
(4.6-755.0 gpt) and anomalous lead and zinc (Schneider-Scherbina, 1961). The
mineralization is characterized by numerous subparallel and branching veins with a
potential for a bulk-tonnage target. Corriente drill hole LRC 97-3 included several
intervals of greater than 20 gpt silver and more than 1% zinc.

Hydrothermal breccias occur within the argillic alteration zones, principally in the Cerro
Alunita area adjacent to ledges of quartz-alunite alteration. Previous drilling by Corriente
Resources showed that LRC97-9 intercepted 14 m that averaged 322.9 gpt silver in
breccias, LD98-1 intercepted 33.3 m that averaged 22.3 gpt in silver and is associated
with visible sphalerite and galena as rims on breccia clasts, and LD98-4 intercepted 17.0
m that averaged 55.9 gpt silver and is associated with disseminated pyrite and patchy
quartz and alunite alteration in dacite (Pothorin, 1998b). Several of these breccias are
observed to exhibit sedimentary textures of fine-admixed rock fragments and chalcedonic
silica filling open spaces among subangular clasts and show (73724), anomalous values
for gold (0.024 ppm) and silver (27.5 ppm). Although the breccia bodies appear to be
irregular and rather restricted in surface outcrops, they may prove to be more extensive
vertically and to extend towards the west beneath the quartz-alunite alteration cap and
overlying post-mineral volcanic flows on Cerro Capaja.

Table 1. Summary of Selected Results from Corriente Drilling at Cerro Alunita and Carnavalito
Areas

Drill Hole No. Intercept Au (gpt) Ag (gpt) Cu % Pb % Zn %


(m)
Cerro Alunita Area
LRC 97-9
114 0.041 58.6 0.010 0.351* 0.175*
includes 14 0.109 322.9 0.024 0.918* 0.549*

LD 98-1
54.03 N/A 17.5 N/A 0.45* 1.18
includes 33.27 N/A 22.3 N/A 0.58* 1.63

LD 98-4
17 N/A 55.9 N/A N/A -

Carnavalito Area

22
Drill Hole No. Intercept Au (gpt) Ag (gpt) Cu % Pb % Zn %
(m)
LRC 97-3
36 0.028 7.1 0.01 0.353* 1.06
in addition 28 0.088 24.7 0.014 0.44* 0.929
in addition 10 0.067 51.4 0.617 0.189 1.021
in addition 14 0.258 70.5 0.068 0.522* 1.468
*Includes some assays capped at 1% the detection limit.

A potential porphyry copper system has been suggested to underlie the Laurani volcanic
complex (Sanjines, Hofstra, and Barrera, 1997), and has a surface expression of pervasive
sericitic and argillic alteration, high-sulfide veining, and tourmaline breccias. Previous
exploration work by Emicruz drilled two holes that specifically targeted a porphyry style
of mineralization on Cerro Laurani. Drill hole LDD6 was a vertical hole that intercepted
tourmaline breccias and porphyry intrusions with values of up to 6.0 m of 0.2 gpt gold
and 0.53% copper (Pothorin, 1997a). Several of the other deep holes drilled by Emicruz
noted subsurface intercepts of tourmaline alteration, pervasive sericitic alteration, and
increasing gold to silver ratios with depth (Emicruz, 1994). This is very suggestive of a
potential buried porphyry system at Laurani.

10.0 Exploration:

10.1 Geophysical Surveys:

Emicruz utilized airborne magnetic geophysical surveys, mapping, and sampling during
1991-1992, and identified several targets that were tested by subsequent drilling. Of
particular interest was a magnetic low west of the main vein area in an area with surface
exposures of andesite porphyry, these were drill tested and the interpretation was that a
buried porphyry system was present at depth on the flanks of Cerro Capaja (Emicruz,
1994).

Previous workers at the property (Corriente Resources) conducted magnetometer (68.5


line-km) and IP/resistivity (26 line-km) surveys across the eastern portion of the Laurani
volcanic complex (Enns and Findlay, 1996). The results of the magnetic surveys
identified magnetic highs in areas where intrusive rocks were possibly present at depth,
and magnetic lows where argillic alteration resulted in the destruction of primary
magnetic minerals in the intrusive units. The IP/resistivity surveys showed high
chargeability within the area that is open to the west towards Cerro Laurani and the
northern flank of Cerro Capaja which suggested the presence of increasing sulphides
present in the rocks. This anomaly corresponds to the area where tourmaline breccias
and pervasive wallrock alteration has been mapped on the surface (Emicruz, 1996) and
suggests that a potential porphyry copper target is present below. Several interesting
anomalies were also reported by Corriente Resources (Enns and Findlay, 1996) in the

23
Tatal Pata area, these include: a 100 ohm-m resistivity coincident with weak
chargeability (12-15 m-sec) in the Carnavalito vein system, and deep chargeability
anomalies in the Tatal Pata, San Geronimo, Santo Cristo, and San Carlos vein systems.
These methods should be considered to determine if further geophysical work could
provide useful exploration tools particularly for the buried porphyry target and to expand
the western limits of the San Geronimo/Tatal Pata and Cerro Alunita areas, as well as
some of the peripheral areas along the western and southern margins of the Laurani
property.

10.2 Geochemical Sampling:

Surface exploration by previous operators indicated that there are anomalous values for
gold and silver scattered across the property, primarily associated with early prospecting
pits and mining. The focus of CML has been to carefully evaluate and document the
context of mineralization to better understand the epithermal system and to develop a
basis for further defining exploration targets. This has involved an intensive program of
detailed surface mapping and sampling, focusing on meaningful chip, channel, and panel
samples of exposed veins and structures, and areas of pervasive alteration. During 2006,
approximately 2.0 km of underground workings were re-opened and mapping and
sampling is ongoing in the areas within the San Geronimo/Tatal Pata and
Toro/Carnavalito areas. On the basis of the sampling conducted to date, several target
areas have been confirmed and are the focus for further exploration work.

I have been informed that CML collected samples for geochemical analyses as
continuous chip and channels across the true width of veins and structures unless
otherwise noted. This ensures that the reported values meaningfully represent the
mineralization observed. In some instances, panel samples were also taken in the Cerro
Alunita and Porphyry target areas in order to collect a sample that was representative of a
non-structural outcrop or feature. To the extent possible, I examined several of these
sample location in 2004 to verify the sampling data, as described below in section 13.0.
Some of the more significant geochemical results obtained by CML are shown in
Appendix I, and are presented according to target area.

Table 2. Selected San Geronimo Surface and Underground Vein Sample Intervals

Sample No. width Au Ag Cu Pb Zn


Surface metres ppb ppm ppm ppm ppm
80510 1.10 9,530.0 707.0 437.0 15,000.0 46.0
80511 2.00 4,530.0 242.0 254.0 799.0 16.0
80512 2.00 170.0 14.2 119.0 172.0 11.0
Total Vein Width 5.1 3,898.6 253.0 240.5 3,616.1 20.5

80513 2.00 1,720.0 273.0 661.0 67,300.0 39.0


80514 2.50 7,060.0 220.0 318.0 2,490.0 15.0
Total Vein Width 4.5 4,686.7 243.6 470.4 31,294.4 25.7

80516 1.10 2,980.0 289.0 118.0 314.0 8.0


80517 1.10 5,580.0 184.0 160.0 3,290.0 9.0

24
Sample No. width Au Ag Cu Pb Zn
Surface metres ppb ppm ppm ppm ppm
80518 1.10 1,510.0 71.9 231.0 577.0 7.0
Total Vein Width 3.3 3,356.7 181.6 169.7 1,393.7 8.0

80519 1.85 21,600.0 86.0 213.0 212.0 10.0


80520 1.10 8,100.0 244.0 525.0 524.0 61.0
80521 1.60 9,970.0 342.0 208.0 309.0 8.0
Total Vein Width 4.6 14,246.6 214.2 286.7 321.5 21.6

80522 1.30 13,850.01,145.0 466.0 2,190.0 18.0


80523 1.20 6,580.0 296.0 409.0 358.0 12.0
Total Vein Width 2.5 10,360.4 737.5 438.6 1,310.6 15.1

80524 2.00 890.0 17.3 181.0 179.0 8.0


80525 2.00 220.0 5.2 43.0 37.0 10.0
Total Vein Width 4.0 555.0 11.3 112.0 108.0 9.0

80526 2.00 730.0 31.0 136.0 322.0 5.0


80527 2.00 230.0 2.8 103.0 44.0 6.0
Total Vein Width 4.0 480.0 16.9 119.5 183.0 5.5

Underground Intermedio tunnel ppm ppm ppm ppm


79873 1.10 2000 305 32,700 146 1,360
79874 1.35 2430 344 42,200 120 969
79875 0.80 120 4.5 13,400 129 614
Total Vein Width 3.3 1,716 247 31,895 131 1,014

79961 1.10 2,620 358 13,200 168 1,145


79962 1.35 1,730 285 3,400 249 436
79963 1.35 1,670 136 4,540 111 322
79964 1.00 2,690 578 48,600 1,785 1,255
79965 1.00 1,280 274 8,060 211 518
79966 2.00 470 10.6 403 113 108
79967 1.80 280 1.9 107 84 106
Total Vein Width 9.6 1,342.3 191.5 8,635.2 317.1 464.9

10.3 Targets

The Laurani property has the potential to host significant gold, silver, and base metal
mineralization in several distinct areas developed within the volcanic complex and the
associated hydrothermal systems. Geological observations suggest there is a good
potential for gold vein mineralization within the 1.5 x 1.0 km San Geronimo/Tatal Pata
and Toro/Carnavalito areas, and for near surface silver mineralization at Cerro Alunita
and a possible deeper porphyry target along the flanks of Cerro Capaja. These
mineralized targets are situated within the larger 10 km wide, oval collapse feature, and it
is likely that other areas will also be found elsewhere in this large structural setting.

25
Figure 10: Map showing exploration areas within the Laurani project.

The four main targets for significant gold and silver mineralization currently identified at
Laurani are based on previous and current geologic mapping, and the results from recent
rock chip sampling. These four targets are:

San Geronimo/Tatal Pata vein system, extending approximately 1.5 km along


strike and consists of a complex system of intersecting veins that exhibit several
stages of mineralization. Historical mining has been primarily for the copper ores
from high-sulfide portions of the veins, significant gold and silver values remain
adjacent to the old workings and along lateral and vertical extensions of the vein
system with high-grade gold and silver mineralization up to 85.1 gpt gold and
1,145 gpt silver;
Toro/Carnavalito area, stockwork veining and the potential for bulk-tonnage gold
and silver mineralization, samples from individual veins contain values up to 3.5
gpt gold and 837 gpt silver, and previous drilling results contain important values
in lead (0.522% ) and zinc (1.46%), as shown in Table 1;
Cerro Alunita area where potential bulk tonnage silver-lead-zinc-gold that lie
beneath and within the extensive quartz-alunite alteration zone, hosted by
breccias, stockwork veining, and disseminated in altered rocks with grades up to
323 gpt silver and 0.1 gpt gold, similar to those intercepted by previous drilling;

26
Potential porphyry copper-gold mineralization system on the northern flanks of
Cerro Capaja, hosted as by breccias or disseminated in porphyry intrusions,
containing grades of up to 0.2 gpt gold and 0.5% copper.

Metal zoning within the system has been noted by previous workers in the region and is
suggested by some of the recent geochemical sampling in the San Geronimo/Tatal Pata
and Toro/Carnavalito areas, but it is unknown whether the zoning is more related to
specific stages of mineralization or represents the overall vein system, the latter could
have implications to metal distribution and geothermal gradients within the larger
hydrothermal system. A detailed understanding of the stages of mineralization and the
structural history of the veins could help determine the importance of metal zoning and
delineate specific target areas within the vein systems. This approach has been proven to
be important in understanding the controls for high-grade gold mineralization at the El
Indio mine in Chile (Jannas et al, 1990).

11.0 Sampling Method and Approach:


CML has established procedures with respect to its sampling programs to minimize the
possibility of sampling and assaying errors. Samples are collected under the supervision of the
geologist in charge of the mapping and sampling program who ensured the quality of the samples
taken and confirmed that the samples were correctly numbered. These samples were then
transported by CML personnel to the ALS Chemex laboratory in Oruro, Bolivia which does not
have an ISO certification at this time. Only the sample preparation is carried out in Oruro.

12.0 Sample Preparation, Analysis and Security:


Samples taken in 2005 and 2006 were analyzed by ALS Chemex in Vancouver. The analysis for
gold is by fire assay (FA) using a 30 gm sample and other elements are assayed by ICP 34
element analysis. The ALS Chemex laboratory in Vancouver, is an ISO 9001:2000 certified
laboratory.

Earlier samples were analyzed at the Acme Laboratories in Chile and Vancouver, after sample
preparation at the ALS Chemex Laboratory in Oruro.

These samples were initially sent to the ACME laboratory in Santiago, Chile for fire assay and
atomic adsorption analysis and then the samples were sent to ACME, Vancouver for ICP
analysis. Results are checked by re-analysis of 9% of the samples by ACME laboratories in Chile
who also insert 3% blank samples and 6% standard samples in each batch analysed to ensure
accuracy. The Chilean laboratory is not ISO 9001:2000 certified, however the Vancouver
laboratory has ISO 9001:2000 certification. The analysis procedure used was gold by fire assay
on a 30 gm sample and ICP 30 element analysis. All the results (Ag, Cu, Mo, Pb & Zn) over the
detection limits were re-analysed by Atomic Adsorption (AA).

27
All samples were collected by Mr. Edwin Mateo under the direct supervision of Mr. Felipe
Malbran, VP South American Exploration. Ralph Fitch, President is the Qualified Person
responsible for the program. Emphasis was placed on quality control and the proper handling and
numbering of all samples. The samples are then transported by either trusted CML personnel or
public transport to the specified public laboratory. Under controlled laboratory conditions the
samples were crushed, split, ground and analyzed for the desired elements by atomic adsorption,
fire assay or standard ICP methods. The sampling methods are considered by the author to be
adequate to ensure that samples taken were secure and would produce meaningful results for the
intent of fulfilling the requirements of this report

13.0 Data Verification:


All data has been reviewed and verified by the author. Check samples were collected and
prepared for shipment to the lab by the author and to the extent possible all geologic information
was reviewed and confirmed in the field, including a personal interview with Edwin Mateo, the
Project Geologist.

13.1 Check Sampling

Sampling was conducted on the property as part of this evaluation, and consisted of selecting
sample locations and collecting rock samples to be submitted for lab analysis. The intent was to
determine if the samples were within a reasonable range of the values reported by CML. Each of
the samples taken were collected and bagged by or supervised by the author, and directly labeled
by the author for submittal to the lab.

The samples were selected with the intent of testing a variety of the mineralized intervals, and
these results are shown in the tables below with the corresponding data that was reported by CML
for each check sample. The intent by the authors sampling, was to the extent possible, duplicate
the same type of sample taken by CML. The author made all attempts to collect continuous chip
samples, which were carefully collected to accurately represent true-widths of the veins or
structures. The samples were personally carried and delivered by the author to the ALS Lab in
Oruro.

Table 3. Check Samples Gold Values

Sample Type/ Katsura, this report CML


Description Sample No. Gold ppm Gold ppm Sample No.
Chip/across 73719 12.7 gpt 9.45 gpt 77831
2.0 m vein
Chip/across 73720 1.6 ppm 3.35 gpt 77756
2.5 m vein
Chip/across 73721 1.6 ppm 7.13 gpt 77757
1.2 m vein
Chip/ across 73722 <0.005 ppm 0.01 gpt 77636
3.0 m vein
Chip/across 73723 <0.005 ppm 0.01 gpt 77626
4.0 m vein

28
Sample Type/ Katsura, this report CML
Description Sample No. Gold ppm Gold ppm Sample No.
Chip/2x4 m 73724 0.024 ppm 0.04 gpt 77625
panel
Chip/3x4 m 73725 0.018 ppm 0.01 gpt 77678
panel
Chip/ across 73726 3.93 ppm 0.92 gpt 77501
1.0 m vein
Chip/across 73727 1.67 ppm 18.25 gpt 77815
1.2 m vein

Table 4. Check Samples Silver Values

Sample Type/ Katsura, this report CML


Description Sample No. Silver ppm Silver ppm Sample No.
Chip/across 73719 408 ppm 690 ppm 77831
2.0 m vein
Chip/across 73720 87.5 ppm 103 ppm 77756
2.5 m vein
Chip/across 73721 37.5 ppm 59.1 ppm 77757
1.2 m vein
Chip/ across 73722 9.2 ppm 10.1 ppm 77636
3.0 m vein
Chip/across 73723 2.6 ppm 3.8 ppm 77626
4.0 m vein
Chip/2x4 m 73724 27.5 ppm 29.9 ppm 77625
panel
Chip/3x4 m 73725 0.7 ppm 0.4 ppm 77678
panel
Chip/ across 73726 423 ppm 184 ppm 77501
1.0 m vein
Chip/across 73727 9.2 ppm 24.1 ppm 77815
1.2 m vein

The results of the sampling by the author confirmed the presence of mineralization and in
the relative value ranges that have been reported by CML. Although there are some
variations in the geochemical data for the check samples, this is considered by the author
as being within an acceptable range considering that the samples taken were not identical
to CMLs samples.

14.0 Adjacent Properties:


The land position held by CML covers an extensive area surrounding the known
exposures of mineralization at Laurani, as well as a potential facilities site nearby.

29
15.0 Interpretation and Conclusions:
The Laurani property is located within a belt of Miocene volcanic centers in the
northeastern Altiplano of Bolivia, where mmineralization associated with volcanism is
part of the polymetallic belt of the central Andes that extends from Argentina to Peru.
The metallogenic belt includes deposits of both quartz-adularia and acid sulfate systems.
Some of the acid sulfate systems, similar to Laurani include: La Coipa and El Indio,
Chile; Kori Kollo in Bolivia; and Julcani in Peru. These deposits all exhibit argillic and
quartz-alunite alteration surrounding vein systems that contain high sulfide mineral
assemblages including: enargite, tennantite, barite, and quartz. The geological setting at
Laurani is similar to Newmont Mining Corporations million plus ounce Kori Kollo gold
mine which is located approximately 55 km to the southeast of the property in a similar
geological setting.

At Laurani, the main mineralized veins occur within an extensive alteration zone
measuring approximately 1.5 x 1.0 km, and contain the extensive San Geronimo vein
system and the complex area of veins in the Tatal Pata area. The epithermal veins at
Laurani have been mined historically for silver, copper, and gold from Pre-Colonial times
to as recently as 1975. The principal veins are the San Geronimo, Tatal Pata, and
Carnavalito, which locally converge and contain numerous subparallel and crosscutting
subsidiary structures, which extend beyond the core alteration area. Rock geochemistry
from surface and underground sampling show highly anomalous values in gold of up to
85.1 gpt and silver up to 1,145 gpt (Appendix I) within the vein system, and may
represent separate pulses of mineralization or zoning within the larger epithermal system.
There is a potential for the discovery of significant high and low sulfide vein
mineralization within the historically mined vein systems as subparallel ore shoots and as
extensions of the veins at depth and along strike. Of particular interest are the often
persistent quartz-alunite ribs and ledges within the vein system which contain highly
anomalous gold and silver values, but have remained largely untouched by previous
mining and exploration efforts.

A significant exploration target is located at Cerro Alunita, where quartz-alunite


alteration caps an elongate ridge surrounded by a halo of pervasive argillic altered rocks
covering more than one square kilometre. Corriente Resources reported a drill intercept
of 114 m @ 58.9 gpt silver and 0.04 gpt gold shown in Table 1, from this target area,
suggesting that a large silver dominated system with gold credits may be present here.

A potential buried porphyry hosted copper-gold system located beneath the central
portion of the Laurani volcanic complex is suggested by a well-defined geophysical IP
anomaly that remains open to the west, corresponding with areas of pervasive sericitic
and argillic wall-rock alteration, and tourmaline crackle breccias that were the targets for
drilling by Emicruz (Emicruz, 1994). Previous workers in the area (Sanjines, Hofstra,
and Barrera, 1997) have suggested that a buried porphyry copper systems may underlie

30
an area on the northern flanks of Cerro Capaja and areas of extensive quartz-alunite and
advanced argillic alteration such as that present in the Cerro Alunita area. The fine-
grained dacite dikes present in these areas are the youngest intrusive rocks mapped, and
may be a shallow-level expression of a buried porphyry system.

In addition, there are several other areas in the south and west sectors of the Laurani
volcanic complex. One particular area in the vicinity of Millokawa exhibits veining,
stockworks, and argillic and quartz-alunite alteration in surface exposures similar to the
systems that are better explored. Preliminary sample results from the Millokawa area
show values up to 4,515 gpt silver and 1.0 gpt gold across a 0.8 m wide vein exposed in
underground workings. More work in these outlying areas may provide additional new
exploration targets.

There is a good exploration potential for the discovery of significant gold-silver


mineralization at the Laurani property hosted by the targets described above. The
topography of the property at Tatal Pata and Cerro Alunita would be conducive to
relatively low stripping ratios if the shallow structural and stratigraphic controlled
precious metal targets could be exploited in part by surface mining methods.

The completed Project Review meets the original objectives discussed in Section 2.2.

16.0 Recommendations:
A comprehensive analysis of the geological and geochemical data is recommended to
better understand the target areas, and determine if geophysical surveys could be utilized
to develop targets for a strategic drilling program. Previous owners have suggested that
magnetic and IP/resistivity geophysical methods were successful in characterizing
potential subsurface targets, and identifying possible areas of high sulfides and argillic
alteration. These methods should be considered as part of further work to better develop
the porphyry copper-gold target.

In the San Geronimo/Tatal Pata area, further develop the vein exploration program to
evaluate and establish the 1.89 M ton resource reported by United Mining. This
evaluation should include the siliceous low-sulphide gold-silver ores that occur as
envelopes around or parallel to the high-sulfide, copper-rich veins.

In the Toro/Carnavalito area trenching and drilling to explore for the potential for large
tonnages of modest grade lead-zinc-silver-gold mineralization that occurs as stockwork
style mineralization.

In the Cerro Alunita area, a limited program of geophysics, geology and further drilling
to explore for continuations of the high grade lead-zinc-silver-gold mineralization in
volcanic breccias intercepted by Corriente Resources in their drilling and trenching.

31
In the area of potential porphyry gold-copper targets to the south and west of the San
Geronimo vein system and on the northern flank of Cerro Capaja, additional exploration
utilizing detailed mapping, geophysics, geochemistry, and possibly examining the
Emicruz drill core will assist in identifying deep drill targets.

It is believed that the exploration conducted at Laurani to date provides sufficient


encouragement to recommend a substantial continuing exploration program involving
drilling, tunneling and detailed metallurgical studies. The next stage of exploration could
reasonably involve 10,000 m of drilling and at least 500 m of tunneling and detailed
metallurgical testing to determine tonnage and grade and recovery methods. The total
cost of this program is expected to be in the order of two million US dollars. A nine
thousand metre drill program and 500 m tunneling program together with associated
geology, geochemistry, geophysics and metallurgy would cost approximately as follows:

US$(000)
Geology/Geophysics/Camp $250
Geochemistry $300
Drilling $990
Roads and Trenching $25
Tunneling $70
Metallurgy $50
Land $90
Other Costs including tax $250
Totals $2,025

An estimate of US$2.025 million, would be required for the next phase of exploration
which would include further geological sampling, mapping, conduct geophysical surveys,
drilling, and tunneling in the specific target areas described above, and would take
approximately 12-18 months to complete.

17.0 References

Ahfeld, F. and Schneider-Scherbina, A., 1964, Los Yacimientos Minerales y de


Hidrocarburos de Bolivia, Bolivia Departmento Nacional de Geologia, Boletin 5, p. 388.

Aguirre, Rodolfo, 1989, Laurani Project Work Executed During August 1989, Memo
report from Compania Aurifera Altiplanica S.A.

Barrera I, Luis; Flores B., Oscar; Jimenez C., Nestor, and others, 1993, Geologia y
mineralizacion de las regions be Berenuela y Laurani, Investigaciones de metales
preciosos en le complejo volcanico neogeno-cuaternario de los Andes centrals, Banco
Interamericano de Desarrollo, Washington, DC, United States

32
Bruce, Charles, 1987, Laurani Au/Ag Project, Program for the Exploration and
Evaluation, Mintec letter report for United Mining, p. 2.

Bruce, Charles, 1988, Progress Report on Laurani, Mintec letter report for United
Mining, p. 2.

Bruce, Charles, 1989, Report on the Laurani Drilling Results, Compania Minera Aurifera
Altiplanica S.A. report for United Mining, p 4.

Casal, Luis, 1970, Informe Tecnico: Cubicacion y Muestra de Los Desmontes: San
Carlos, Intermedio, Carmen, San Geronimo, Company report for Corporacion Minera
Laramcota, p. 9.

Cunningham, Charles G; McNamee, James; Pinto-Vasquez, Jose; and others, 1991, A


model for volcanic-dome hosted precious metal deposits in Bolivia, Economic Geology,
v. 84, no. 2, p. 415-421.

Emicruz (RTZ/COMSUR JV), 1994, Block Diagram of Drillhole Cross Sections View
from NE, in-house Company document.

Enns, Steve and Findlay, Alastair, 1996a, Laurani Bolivia, Alteration Report: includes
petrography, SEM and PIMA II Analysis, PetraSCience Consultants Inc., for Corriente
Resources Inc., p. 54.

Enns, Steve and Findlay, Alastair, 1996b, Laurani Property, Bolivia, Geological Report,
Company report for Sociedad Minera SA (SOMINSA), p. 29.

Erickson, G.E. and Cunningham, C.G., 1988, Epithermal Precious-metal Deposits Hosted
by the Neogene and Quaternary Volcanic Complex in the Central Andes, in Kirkham,
R.V., Sinclair, W.D., Thorpe, R.I., and Duke, J.M., eds., Mineral Deposit Modeling:
Geological Association of Canada, Special Paper 40, p. 419-431.

Jannas, R.R, Beane, R.E., Ahler, B.A., and Brosnahan, D.R., 1990, Gold and copper
mineralization at the El Indio deposits, Chile, Journal of Geochemical Exploration, v. 36,
p. 233-266.

Jimenez, N. Ch.; Lizeca B., J.L.; Murillo S., F., Sanjines; V.O.; Barrera I., L.; and Flores
B., O., 1993, Marco geologico del distrito minero de Laurani: Investigaciones de metales
preciosos en el complejo volcanico Neogeno-Cuaternario de los Andes Centrales,
Proyecto BID/TC-88-02-32-5, p. 116-122.

Lane, Ron W., 1996, Summary Report Laurani Property, Northwest Bolivia, Company
report for Corriente Resources Inc., p.11.

33
Lopez-Velasquez, Shirley, and Jimenez, Nestor Ch, 1997, Sistemas Hidrotermales Del
Limites Altiplano-Cordillera Oriental, in Investigaciones Sobre El Magmatismo Y La
Mineralizacion Del Cenozoico De Los Andes Bolivianos, Boletin del Servicio Nacional
de Geologia y Mineria, No. 23, p. 60-73.

Martinez, Dionisio Garzon, 1990, Laurani, Un Yacimiento Epitermal Asociado al


Emplazamiento de Un Domo Volcanico, Report for Mineria Tecnica Consultores
Asociados. P 10.

Mateo, Edwin, 2004, Proyecto Laurani Bolivia, Estudio Geologico, Company report for
Compania Minera Laurani S.A., in preparation.

Melbye, Charles E., 1987a, Preliminary Evaluation Mina Laurani, Department of La Paz
Bolivia, Company report for United Mining Corporation, p.7.

Melbye, Charles E., 1987b, Progress Report Mina Laurani, Department of La Paz
Bolivia, Report for United Mining Corporation, p. 3.

Melbye, Charles E., 1989a, Preliminary Evaluation First-Stage Drilling Program Mina
Laurani, Bolivia, Report for United Mining Corporation, p. 4.

Melbye, Charles E., 1989b, Progress Report-Mina Laurani, Bolivia, Letter report to
United Mining Corporation.

Melbye, Charles E., 1989c, Geology and Ore Reserves Mina Laurani Bolivia, Report for
United Mining Corpration, p. 9.

Melbye, Charles E., 1991, Geology and Ore Reserves Mina Laurani, Bolivia, Company
report for United Mining Corporation, p 9.

Pothorin, C., 1997a, Laurani RC Drill Program Corriente Resources Inc. August 1997,
Company report for Corriente Resources Inc., p. 14.

Pothorin, C., 1997b, Laurani Exploration Program Corriente Resources Inc. September-
December 1997, Company report for Corriente Resources Inc., p. 13.

Pothorin, C., 1998a, Laurani Exploration Program, La Paz Bolivia, March to April 1998,
Company report for Corriente Resources Inc., p. 9.

Pothorin, C., 1998b, Laurani Project, La Paz Bolivia, Diamond Drilling Report May to
June 1998, Company report for Corriente Resources Inc., p. 10.

Redwood, S.D., 1987, The Soledad Caldera, Bolivia: A Miocene caldera with associated
epithermal Au-Ag-Cu-Pb-Zn mineralization, Geological Society of America Bulletin, v.
99, p. 395-404.

34
Redwood, Stewart D.; MacIntyre, R. Mitchell, 1989, K-Ar dating of Miocene magmatism
and related epithermal mineralization of the northeastern Altiplano of Bolivia, Economic
Geology, v. 84, no. 3, p. 618-630.

Sanjines V, Orlando, Hofstra, Albert H., and Barrera, Luis, 1997, Modelo Genetico del
Deposito La Espanola Cordillera Occidental-Bolivia, Boletin del Servicio Nacional de
Geologia y Mineria, No. 23, p. 101-114.

Scheider-Scherbina, Alexander, 1961, The Argentous and Copper Ore Deposit of


Laurani Sica-Sica Bolivia, Report of the German Geological Mission in Bolivia, p.
30.

Sillitoe, R.H. and Bonham, H.F., Jr., 1984, Volcanic landforms and ore deposits,
Economic Geology, v. 79, p. 1286-1298.

Winter, C.J., 1995, Overview of the Laurani Prospect, Company report for Corriente
Resources Inc. p. 7.

35
APPENDEX I

Laurani Assay Results for Exploration Targets as Listed in Report

Surface San Geronimo/Tatal Pata area


San Geronimo vein (West)
Sample No. Width (m) Au ppb Ag gpt Cu gpt Pb gpt Zn gpt
77822 1.20 987.0 9.9 15.0 57.0 4.0
77825 2.50 545.0 9.9 165.0 108.0 28.0
77830 4.00 496.0 2.5 231.0 142.0 6.0
77831 2.00 9,446.0 690.0 330.0 527.0 12.0
77832 3.00 2,207.0 150.0 114.0 206.0 11.0
77856 2.00 10,196.0 461.0 162.0 2,902.0 2.0
77859 2.00 4,536.0 168.0 703.0 1,693.0 39.0
77903 2.00 574.0 17.3 245.1 104.4 8.0
77904 2.00 8,100.0 421.0 765.1 10,020.0 52.0
77990 3.00 3,800.0 96.1 1,512.0 1,569.0 236.0
77991 2.00 1,855.0 72.8 621.0 1,062.0 49.0
77992 1.00 2,562.0 224.0 184.0 387.0 17.0
77993 3.00 4,000.0 111.0 505.0 711.0 26.0
77994 3.00 213.0 20.0 111.0 132.0 25.0
77995 1.50 16,300.0 401.0 421.0 1,969.0 8.0
77996 2.50 352.0 5.0 206.0 101.0 9.0
77997 3.00 643.0 4.7 432.0 393.0 13.0
77998 4.00 1,928.0 145.0 264.0 251.0 30.0
79504 3.00 232.0 12.1 76.0 100.0 6.0
79505 1.50 3,243.0 344.0 202.0 2,911.0 12.0
79507 3.00 362.0 42.8 815.0 172.0 45.0
79508 4.00 818.0 25.0 145.0 53.0 10.0
79509 3.00 4,067.0 573.0 230.0 375.0 8.0
79510 3.00 1,910.0 15.6 391.0 49.0 503.0
79511 2.00 6,900.0 383.0 362.0 733.0 43.0
79512 1.20 3,850.0 8.6 29.0 30.0 5.0
79513 2.50 2,293.0 19.6 942.0 488.0 189.0
79514 0.80 3,567.0 150.0 267.0 14,830.0 51.0
79515 0.50 2,755.0 86.4 269.0 2,064.0 32.0
80492 2.00 170.0 8.3 76.0 47.0 21.0
80493 2.00 260.0 5.1 144.0 60.0 11.0
80494 1.60 1,200.0 63.8 129.0 87.0 11.0
80495 2.00 670.0 52.7 523.0 2,790.0 81.0
80496 2.00 110.0 2.8 21.0 224.0 8.0
80497 2.00 280.0 17.5 152.0 142.0 7.0
80498 2.00 2,320.0 220.0 805.0 164.0 69.0
80499 2.00 660.0 13.5 99.0 785.0 10.0
80500 2.00 150.0 6.3 121.0 46.0 12.0
80501 2.00 400.0 4.4 57.0 152.0 6.0
80502 2.00 50.0 3.4 40.0 184.0 8.0
80503 2.00 2,120.0 231.0 117.0 211.0 19.0
80504 2.40 590.0 39.9 294.0 49.0 25.0
80505 2.20 2,040.0 158.0 249.0 139.0 15.0

1
80506 2.20 170.0 31.5 96.0 63.0 6.0
80507 2.20 110.0 5.4 136.0 56.0 9.0
80508 2.40 3,150.0 185.0 268.0 1,050.0 17.0
80509 2.40 370.0 14.2 209.0 231.0 14.0
80510 1.10 9,530.0 707.0 437.0 15,000.0 46.0
80511 2.00 4,530.0 242.0 254.0 799.0 16.0
80512 2.00 170.0 14.2 119.0 172.0 11.0
80513 2.00 1,720.0 273.0 661.0 67,300.0 39.0
80514 2.50 7,060.0 220.0 318.0 2,490.0 15.0
80515 2.00 2,780.0 48.3 120.0 1,845.0 10.0
80516 1.10 2,980.0 289.0 118.0 314.0 8.0
80517 1.10 5,580.0 184.0 160.0 3,290.0 9.0
80518 1.10 1,510.0 71.9 231.0 577.0 7.0
80519 1.85 21,600.0 86.0 213.0 212.0 10.0
80520 1.10 8,100.0 244.0 525.0 524.0 61.0
80521 1.60 9,970.0 342.0 208.0 309.0 8.0
80522 1.30 13,850.0 1,145.0 466.0 2,190.0 18.0
80523 1.20 6,580.0 296.0 409.0 358.0 12.0
80524 2.00 890.0 17.3 181.0 179.0 8.0
80525 2.00 220.0 5.2 43.0 37.0 10.0
80526 2.00 730.0 31.0 136.0 322.0 5.0
80527 2.00 230.0 2.8 103.0 44.0 6.0
80528 1.50 2,300.0 685.0 667.0 1,195.0 123.0
80529 1.10 7,860.0 647.0 348.0 769.0 15.0
80530 1.50 4,280.0 638.0 131.0 320.0 8.0
80531 1.80 1,910.0 62.8 279.0 100.0 17.0
80532 1.00 2,310.0 245.0 251.0 326.0 9.0
80533 1.30 5,160.0 381.0 756.0 176.0 23.0
80534 1.10 2,240.0 674.0 170.0 356.0 7.0
80535 0.90 510.0 28.3 561.0 122.0 17.0
80536 1.00 4,520.0 398.0 178.0 98.0 14.0
80537 2.00 8,290.0 741.0 165.0 288.0 9.0
80538 1.50 1,650.0 9.0 312.0 45.0 593.0
80539 2.00 12,450.0 116.0 293.0 489.0 163.0
80540 1.00 3,010.0 43.5 172.0 2,140.0 56.0

Underground San Geronimo/Tatal Pata area


San Geronimo vein (West)
Sample No. Width (m) Au gpt Ag gpt Cu % Pb % Zn %

79873 1.10 2 305 3.27 0.01 0.14


79874 1.35 2.43 344 4.22 0.01 0.10
79875 0.80 0.12 4.5 1.34 0.01 0.06
79961 1.10 2.62 358 1.32 0.02 0.11
79962 1.35 1.73 285 0.34 0.02 0.04
79963 1.35 1.67 136 0.45 0.01 0.03
79964 1.00 2.69 578 4.86 0.18 0.13
79965 1.00 1.28 274 0.81 0.02 0.05
79966 2.00 0.47 10.6 0.04 0.01 0.01
79967 1.80 0.28 1.9 0.01 0.01 0.01
79968 1.50 2.05 118 0.39 0.01 0.03

2
79969 0.90 0.81 6.3 0.03 0.02 0.01
79970 0.40 2.13 485 2.17 0.18 0.22
79971 0.40 1.04 20.7 0.03 0.02 0.02
79972 1.36 0.8 42.9 0.07 0.02 0.06

Surface San Geronimo/Tatal Pata area


Tatal Pata vein
Sample No. Width m Au ppb Ag gpt Cu gpt Pb gpt Zn gpt
77750 2.00 67 4.7 7 33.00 2
77751 1.50 266.0 36.1 69.0 1,614.00 49.0
77752 1.50 56.0 13.3 54.0 296.00 23.0
77753 3.00 136.0 3.0 35.0 42.00 2.0
77754 2.50 726.0 21.4 128.0 153.00 9.0
77755 2.50 1,546.0 10.9 228.0 33.00 12.0
77756 2.50 3,346.0 103.0 447.0 980.00 27.0
77757 1.50 7,131.0 59.1 131.0 3,898.00 26.0
77758 2.50 266.0 8.7 32.0 78.00 2.0
77759 2.50 76.0 3.6 7.0 51.00 7.0
77760 2.50 101.0 6.0 7.0 95.00 1.0
77761 1.00 1,431.0 81.3 59.0 563.00 6.0
77762 2.00 356.0 10.1 64.0 333.00 9.0
77763 2.00 176.0 10.1 523.0 181.00 101.0
77764 2.50 236.0 8.7 170.0 141.00 11.0
77765 2.50 866.0 23.3 161.0 194.00 37.0
79522 1.50 1,263.0 23.3 108.0 122.00 4.0
79523 1.00 2,578.0 31.0 193.0 103.00 14.0
79524 1.50 704.0 32.2 382.0 921.00 11.0
79525 5.00 699.0 21.5 39.0 113.00 3.0
79526 1.50 689.0 88.2 62.0 10,680.00 16.0
79527 0.60 439.0 9.9 90.0 371.00 11.0
79528 1.00 536.0 11.7 1,109.0 290.00 187.0
79529 1.00 346.0 22.1 164.0 307.00 11.0
79530 1.20 1,758.0 35.1 269.0 220.00 136.0
79531 0.50 1,446.0 160.0 178.0 5,125.00 9.0
79532 0.60 6,529.0 607.0 120.0 1,005.00 37.0
79533 1.00 849.0 141.0 166.0 5,083.00 94.0
79534 0.60 3,306.0 491.0 97.0 2,815.00 12.0
79535 0.60 829.0 50.2 266.0 702.00 65.0

Underground San Geronimo/Tatal Pata area


Tatal Pata vein
Sample No. Width m Au gpt Ag gpt Cu % Pb % Zn %
79858 0.30 3.33 114 6.92 0.02 0.19
79859 0.80 0.31 8 0.57 0.01 0.04
79860 0.90 1.81 36.00 0.95 0.01 0.07
79862 0.30 0.94 13.00 1.30 0.02 0.13
79863 0.20 3.28 911.00 9.50 0.26 0.61
79864 0.58 5.62 121.00 0.71 0.03 0.07
79866 0.65 4.13 1,500.00 5.40 0.34 1.39
79867 0.60 0.55 19.00 2.32 0.02 0.01
79868 0.40 2.29 382.00 7.10 0.07 0.66
79869 1.20 1.66 717.00 1.06 0.26 0.24

3
79870 0.80 17.90 1,175.00 4.82 0.40 1.05
79871 0.60 0.78 112.00 3.55 0.16 0.42
79877 1.15 0.68 149.00 0.42 0.40 1.61
79878 0.90 66.20 337.00 1.26 0.30 0.59
79892 0.65 3.21 149.00 2.67 0.20 0.40
79893 0.50 0.17 9.30 0.11 0.22 0.30
79894 1.00 0.26 9.20 0.03 0.10 0.12
79895 0.55 1.22 115.00 3.38 0.28 0.37
79896 0.65 0.39 11.70 0.12 0.03 0.02
79897 0.90 1.34 382.00 6.35 0.40 1.08
79898 1.80 0.16 7.90 0.04 0.10 0.05
79899 1.40 0.29 4.70 0.02 0.03 0.01
79900 1.36 0.65 81.70 0.36 0.38 0.83
79901 1.37 0.03 3.80 0.01 0.03 0.06
79902 0.75 0.04 1.70 0.03 0.02 0.01
79903 1.25 25.40 236.00 0.47 0.51 0.52
79904 1.30 3.58 410.00 0.97 0.40 0.20
79905 1.00 0.62 12.30 0.03 0.01 0.01
79906 0.76 3.32 342.00 1.27 1.15 0.43
79907 1.50 0.13 8.30 0.05 0.10 0.08
79914 1.30 1.80 31.20 1.66 0.04 0.23
79915 1.00 0.12 1.20 0.04 0.01 0.01
79916 2.00 1.28 14.10 0.14 0.01 0.01
79917 0.80 0.17 2.40 0.02 0.01 0.01
79918 1.30 2.53 888.00 3.36 0.19 0.51
79929 0.50 3.07 743.00 1.60 0.60 1.23
79930 1.50 0.01 2.10 0.01 0.02 0.15
79931 V 0.46 24.50 0.11 0.11 0.40
79932 0.80 5.87 1,075.00 3.60 2.72 3.20
79933 1.10 0.01 2.80 0.01 0.14 0.39
79934 0.35 4.17 1,210.00 4.10 0.39 1.24
79935 1.30 0.01 3.50 0.01 0.02 0.09
79936 1.30 0.01 1.90 0.00 0.05 0.13
79937 V 0.22 29.40 0.05 0.17 0.22
79938 0.35 8.84 1,835.00 6.42 1.12 2.82
79939 1.03 0.01 3.70 0.03 0.06 0.14
79940 1.05 0.01 3.40 0.02 0.24 0.65
79941 0.65 9.04 829.00 2.62 0.66 1.60
79949 1.10 4.38 458.00 0.98 0.86 0.34
79950 1.20 0.43 75.40 0.06 0.22 0.16
79954 0.50 2.15 400.00 0.70 0.39 0.47
79955 0.80 0.23 18.80 0.03 0.45 0.55
79956 0.80 2.49 228.00 0.55 0.05 0.13
79957 1.40 0.37 21.20 0.03 0.76 0.74

Surface San Geronimo/Tatal Pata area


San Geronimo (East)
Sample No. Width m Au ppb Ag gpt Cu gpt Pb gpt Zn gpt
77560 1.50 60.0 6.4 69.0 1,650.0 61.0
77561 2.00 208.0 451.0 61.0 322.0 42.0
77562 0.50 103.0 73.9 65.0 2,804.0 37.0
77563 2.00 120.0 7.8 206.0 3,495.0 238.0

4
77564 2.00 133.0 21.2 81.0 4,241.0 62.0
77565 2.50 75.0 28.3 58.0 9,339.0 134.0
77773 2.00 618.0 119.0 389.0 8,219.0 77.0
77774 1.50 1,106.0 140.0 17.0 799.0 21.0
77775 2.50 1,346.0 119.0 143.0 533.0 18.0
77776 2.00 1,846.0 243.0 144.0 204.0 28.0
77777 2.00 86.0 6.3 11.0 69.0 2.0
77778 2.00 2,017.0 719.0 420.0 134.0 27.0
77779 1.50 26.0 1.1 366.0 44.0 204.0
77780 2.00 41.0 4.6 213.0 426.0 179.0
77781 0.80 116.0 61.6 32.0 3,851.0 34.0
77782 2.00 196.0 18.3 201.0 4,193.0 43.0
77783 2.50 51.0 6.1 142.0 3,531.0 99.0
77784 0.50 546.0 34.4 24.0 1,422.0 8.0
77812 1.50 321.0 20.8 83.0 3,874.0 18.0
77813 1.20 316.0 161.0 131.0 3,660.0 20.0
77814 1.50 21.0 4.8 77.0 362.0 17.0
77815 1.20 18,246.0 24.1 75.0 189.0 27.0
77819 2.50 3,156.0 103.0 277.0 1,724.0 23.0
77820 2.00 6,396.0 682.0 269.0 979.0 35.0
77821 4.00 1,115.0 74.2 116.0 107.0 17.0
77823 1.50 1,476.0 9.5 22.0 47.0 1.0
77824 2.00 206.0 25.0 1,366.0 785.0 135.0
77921 3.00 455.0 15.3 57.3 292.1 11.0
77922 384.0 18.0 297.9 245.0 71.0
77923 3.00 100.0 8.6 298.1 329.0 14.0
77924 2.00 312.0 41.9 184.4 2,310.1 36.0
77925 3.00 17.0 1.9 272.6 537.7 73.0
79506 3.00 1,265.0 60.7 51.0 73.0 11.0
79516 1.50 267.0 3.4 261.0 105.0 40.0
79517 3.00 293.0 7.3 206.0 69.0 32.0
79518 4.00 1,417.0 66.1 238.0 162.0 24.0
79519 2.00 217.0 2.5 169.0 1,432.0 22.0
79520 2.00 685.0 59.9 251.0 220.0 44.0

Underground San Geronimo/Tatal Pata area


San Geronimo (East)
Sample No. Width m Au gpt Ag gpt Cu % Pb % Zn %
79851 1.00 85.1 100 0.06 0.04 0.02
79852 1.20 1.3 21 0.04 0.03 0.01
79853 0.55 1.5 25 0.09 0.05 0.1
79854 0.80 2.19 119 0.11 0.35 1.03
79855 0.60 4.3 492 1.04 0.17 0.03
79856 0.40 3.08 705 3.33 0.98 2.15
79857 0.80 0.6 4 0.13 0.01 0.02
79861 0.40 5.26 297 1.08 1.51 4.41
79919 1.30 1.29 43.3 0.18 0.51 1.22
79920 1.30 1.04 20 0.12 0.05 0.03
79921 1.30 0.37 4.9 0.02 0.05 0.03
79922 1.30 0.67 2 0.04 0.00 0.01
79924 1.20 0.96 22.6 0.69 0.01 0.03
79925 1.80 2.63 179 0.56 0.08 0.18

5
79927 1.00 0.15 5.8 0.01 0.02 0.01
79928 0.50 3.31 206 1.88 0.02 0.26
79973 1.00 1.22 46.9 1.64 0.04 0.12
79974 0.60 0.12 5.2 0.15 0.00 0.02
79975 1.40 0.07 3.3 0.06 0.01 0.01
79976 1.60 0.45 6.1 0.27 0.01 0.01
79977 1.84 0.04 2.5 0.32 0.01 0.03
79978 1.80 0.88 18.2 1.75 0.01 0.03
79979 1.10 0.64 24.6 0.65 0.05 0.04
79980 2.00 2.96 78.4 0.11 0.08 0.07
79981 2.00 0.29 21 0.16 0.02 0.05
79982 1.00 0.26 16 0.08 0.00 0.09
79983 1.30 1.07 114 1.22 0.01 0.10
79984 1.30 0.12 23.7 0.03 0.60 1.26
79988 0.90 0.68 282 0.24 0.05 0.59
79990 0.90 0.25 10.8 0.34 0.02 0.05
79992 0.70 0.24 5.3 0.66 0.01 0.03
79997 0.70 1.26 20.2 0.79 0.01 0.03
79998 2.40 0.18 3.2 0.36 0.01 0.03
79999 1.90 0.93 8.8 0.19 0.01 0.02
80000 2.50 0.71 27.4 2.33 0.01 0.01
80451 1.80 0.54 11 1.09 0.01 0.01
80452 1.40 0.23 18.4 0.35 0.00 0.06
80453 2.00 2.58 693 1.07 0.02 0.23
80454 2.20 0.38 18.3 0.04 0.06 0.12
80455 2.40 1.16 342 1.13 0.01 0.16
80456 1.60 0.26 9 0.02 0.01 0.06
80457 1.60 0.18 3.5 0.00 0.00 0.03
80458 1.12 1.35 217 2.71 0.01 0.21
80459 1.70 1.61 476 2.46 0.01 0.22
80460 1.50 0.33 3.2 0.01 0.00 0.04
80461 2.00 0.53 43.7 0.12 0.01 0.34
80462 1.70 0.53 11 0.05 0.01 0.31
80463 1.85 2.16 1215 1.87 0.02 0.35
80464 0.80 2.05 423 0.16 0.44 0.30
80465 2.00 1.66 790 0.54 0.23 0.62
80466 1.10 2.49 704 0.14 7.63 13
80467 1.00 0.99 170 0.11 0.70 0.41
80468 1.50 1.13 267 4.27 0.03 0.33
80469 0.66 4.49 1455 4.67 0.12 0.85
80470 0.45 6.52 3360 8.74 0.16 0.95
80471 0.50 1.67 439 14.25 0.06 0.57
80472 1.05 0.87 37.4 1.65 0.04 0.37
80475 0.40 0.22 285 0.65 0.24 1.46
80476 1.00 1.17 270 3.79 0.01 0.09
80477 1.20 0.78 91.7 1.33 0.00 0.03
80478 0.50 1.07 172 2.21 0.01 0.09
80479 0.90 0.39 3.5 0.04 0.02 0.00
80480 0.60 0.7 186 0.70 0.01 0.15
80481 1.40 0.22 19.7 0.05 0.02 0.07
80482 1.00 2.29 345 0.05 0.39 0.04
80483 1.50 0.67 76.7 0.29 0.01 0.02

6
80484 1.50 0.55 20 0.02 0.00 0.01
80485 1.10 2.67 237 0.95 0.05 0.11
80486 0.60 0.78 174 4.13 0.02 0.07
80487 0.60 0.72 12.7 0.06 0.01 0.02
80488 1.70 0.39 57.7 0.12 0.12 0.04
80490 0.65 3.38 842 4.13 0.11 0.22
80491 0.90 1.45 66.9 0.16 0.02 0.01

Surface Toro/Carnavalito Area


(Carnavalito)
Sample No. Width m Au ppb Ag gpt Cu gpt Pb gpt Zn gpt
77501 1.00 920.0 184.0 150.0 2,876.0 25.0
77502 2.00 363.0 22.3 28.0 1,638.0 26.0
77503 2.00 15.0 1.3 134.0 260.0 56.0
77504 2.00 450.0 6.0 30.0 332.0 13.0
77505 2.00 458.0 11.7 101.0 445.0 20.0
77506 2.00 623.0 31.6 34.0 1,612.0 11.0
77507 2.00 35.0 3.4 61.0 1,159.0 91.0
77508 2.00 10.0 1.4 33.0 124.0 23.0
77509 2.00 320.0 18.2 16.0 541.0 9.0
77510 2.00 28.0 8.5 135.0 2,164.0 18.0
77511 2.00 163.0 21.8 24.0 829.0 25.0
77512 1.50 293.0 64.8 49.0 2,481.0 16.0
77513 0.40 1,875.0 323.0 535.0 1,581.0 142.0
77514 2.00 90.0 14.9 19.0 769.0 8.0
77518 1.20 908.0 319.0 276.0 3,164.0 18.0
77520 2.00 18.0 3.1 90.0 395.0 46.0
77522 2.00 20.0 3.2 45.0 811.0 43.0
77523 3.00 18.0 3.0 109.0 1,891.0 29.0
77535 1.00 563.0 11.9 31.0 543.0 10.0
77536 2.00 1,105.0 5.9 57.0 192.0 6.0
77651 1.20 2.0 0.2 3.0 25.0 16.0
77652 2.00 4.0 1.0 22.0 97.0 190.0
77653 1.50 18.0 5.7 192.0 336.0 133.0
77654 1.50 48.0 6.2 22.0 51.0 36.0
77655 2.50 1,000.0 4.3 74.0 134.0 11.0
77656 2.00 10.0 3.8 26.0 96.0 7.0
77657 2.50 50.0 1.8 5.0 131.0 6.0
77658 1.50 13.0 3.9 7.0 139.0 4.0
77659 1.50 15.0 0.2 26.0 57.0 10.0
77660 2.00 655.0 8.9 4.0 34.0 4.0
77661 2.00 15.0 0.2 46.0 100.0 153.0
77662 2.00 15.0 0.2 29.0 54.0 29.0
77803 1.20 35.0 114.0 765.0 19,820.0 2,367.0

Surface Toro/Carnavalito Area


(Toro)
Sample No. Width m Au ppb Ag gpt Cu gpt Pb gpt Zn gpt
77515 1.00 14 8.6 110 2728 90
77516 0.50 3,600 93.2 815 51750 789

7
77517 1.50 105 36.2 523 6158 68
77519 2.00 275 4.6 42 72 5
77525 2.00 90 11.7 160 6261 43
77526 1.20 975 265 1466 39960 215
77527 2.00 1,813 214 221 4435 59
77528 1.00 313 126 206 16160 260
77529 1.50 135 74 117 7136 125
77575 1.50 638 180 78 2562 34
77576 1.50 335 5.8 107 7668 584
77577 1.00 123 8.9 98 9383 878
77578 1.00 8 1.4 81 1167 424
77579 1.50 10 2.6 120 1370 2696
77580 1.00 5 3.6 27 3664 4661
77581 1.50 18 30.9 265 3101 1477
77582 1.20 70 11.1 216 12310 659
77583 1.20 10 1.6 32 1111 755
77584 1.00 353 153 257 13400 176
77585 3.00 218 10.9 155 17820 1634
77586 1.20 28 3.7 128 2275 27
77757 1.50 7,131 59.1 131 3898 26
77785 2.00 15 5.9 25 1464 159
77786 2.50 156 13.5 98 1064 7
77787 2.00 208 7.2 71 719 20
77788 1.20 1,976 422 211 1627 19
77789 2.50 66 8.4 1044 6337 115
77790 2.50 11 7.3 197 2602 187
77791 1.20 68 19.6 97 4812 194
77792 1.20 766 10.9 124 250 10
77793 1.50 146 58.9 302 14670 335
77794 1.50 36 6.3 26 3275 227
77795 1.20 66 34 128 6826 217
77796 1.20 836 837 434 19990 241
77797 1.20 129 55.3 1410 19390 193
77798 2.00 916 113 295 6625 336
77799 1.20 131 22.3 206 13070 1533
77800 1.40 467 24.2 144 8640 722
77801 1.20 3,511 229 165 938 155
77802 2.00 36 12.3 89 4665 3441
77804 2.50 466 67.7 1223 3445 231
77805 2.00 56 4.6 21 599 9
79521 2.20 3,746 331 635 13470 182

Surface Porphyry Copper-Gold Target area


Sample Width m Au ppb Ag gpt Cu gpt Pb gpt Zn gpt Mo gpt As gpt
No.
77587 2.00 5 0.5 11 57 7 2 57
77588 0.80 6 0.3 29 89 26 2 97
77589 2.00 5 0.2 26 54 8 2 74
77590 2.00 6 0.2 20 19 37 4 29
77591 2.00 7 0.4 73 34 6 2 37
77592 2.00 7 2.2 19 27 6 1 69

8
77593 2.00 4 0.2 24 15 6 <1 24
77594 2.00 8 0.7 33 59 19 1 46
77595 2.00 7 0.2 22 34 39 <1 7
77596 2.00 5 0.2 24 17 17 2 11
77597 2.00 7 0.2 33 31 17 2 67
77646 1.50 2 0.2 18 13 28 1 7
77647 2.00 2 0.2 15 14 6 2 40
77648 1.00 1 0.2 25 21 55 2 27
77649 1.50 1 0.2 18 24 66 2 28
77650 1.00 1 0.2 19 31 35 4 119
77663 1.50 10 0.3 39 35 177 1 13
77664 2.00 10 0.2 19 30 12 1 22
77665 2.00 15 0.2 33 22 6 <1 36
77700 2.00 3 0.2 21 20 4 2 25
77701 2.00 1 0.2 19 23 8 1 27
77702 2.00 1 0.2 44 9 6 1 45
77703 1.50 2 0.2 20 11 90 <1 <2
77704 3.00 1 0.3 74 13 1 2 58
77705 3.00 3 0.2 72 29 1 1 55
77706 3.00 1 0.2 15 10 4 2 17
77707 2.00 2 0.2 12 18 5 1 61
77708 2.00 1 0.2 45 10 3 1 29
77709 2.00 11 21.3 31 725 9 3 184
77710 3.00 8 10.2 13 280 5 3 45
77711 2.00 261 3 17 249 28 1 66
77712 3.00 7 7 42 56 15 2 123
77713 3.00 5 2.1 21 92 51 1 105
77714 3.00 3 7.2 16 123 17 1 130
77715 3.00 96 79.8 29 774 6 17 77
77716 3.00 876 79 31 140 1 7 672
77717 2.00 546 32 82 140 2 2 112
77718 2.00 7 0.2 17 16 35 1 54
77719 2.00 5 0.2 26 17 12 1 70
77720 2.50 376 17.4 137 208 12 2 953
77721 2.00 6 0.2 41 9 13 <1 50
77722 2.00 4 0.2 15 39 8 1 30
77723 1.50 4 0.2 19 17 5 1 8
77724 2.00 3 0.2 15 12 66 1 2
77725 2.00 3 0.4 28 43 80 6 96
77726 2.00 4 1.5 31 34 105 2 77
77727 2.00 3 0.5 25 23 6 1 13
77728 2.00 1,396 181 46 1923 10 1 256
77729 2.00 416 47.6 70 3914 7 1 311
77730 2.00 146 3.5 63 25 54 1 369
77731 2.00 236 6.2 91 60 4 3 883
77732 2.50 356 4.2 42 287 10 4 864
77733 3.00 171 1.6 5 124 7 1 59
77734 2.50 16 13.5 14 59 5 1 90
77735 2.00 216 2 29 132 23 1 178
77736 2.50 31 2.3 44 43 19 2 234
77737 3.00 171 4.3 38 36 15 1 185
77738 2.00 86 2.3 45 29 15 1 301

9
77739 2.50 6 1 24 23 8 1 35
77826 2.00 11 1.3 15 34 6 2 30
77827 2.50 46 1.1 14 46 6 2 67
77828 2.50 26 0.7 5 13 1 1 8
77829 2.50 81 1.1 27 59 3 1 58
77850 2.00 1 0.2 14 63 67 1 72
77851 1.50 3 0.4 4 14 1 1 33
77852 1.80 4 0.2 14 37 65 1 45
77853 1.20 122 31.8 46 17040 55 1 383
77854 4.00 151 3.8 14 93 2 1 136
77855 2.00 75 1.4 86 37 6 1 202
77858 2.00 5 0.7 66 142 37 2 152
77905 1.50 54 1.3 19.7 33 5 1.6 119.5
77906 1.20 102 2 40.2 30.1 2 2.2 414.8
77907 1.20 472 22.8 71 3242 16 1.2 527.5
77908 1.50 5 1.4 16.6 68.7 17 5.9 90.9
77909 2.00 74 54.5 28.1 68.5 22 4.5 287.1
77910 1.00 157 76.2 25.7 26.9 44 3.8 340.6
77911 1.00 2 0.9 13.9 97 120 1.7 152.1
77912 2.00 220 24.3 54.1 1228.2 51 4.8 401.1
77913 1.50 366 29.2 120.2 2561.9 17 2.4 727.1
77914 0.40 401 61.1 371.8 10440 95 6.3 1929.3
77915 0.70 1,459 90.8 248.7 3646.9 61 3.4 991.7
77916 1.20 4 3 51.8 1792.7 188 0.8 228.6
77917 3.00 1 0.2 69.5 157 373 1.3 541.6
77918 2.00 11 3.1 59.8 594.1 1806 2 658.2
77919 2.00 1 0.3 154.1 99.8 1627 0.8 675.5
79536 1.00 871 >100 30 247 1 9 83
79537 1.00 96 95.6 66 855 6 11 120

10
APPENDEX II

Certification of Qualification

11
Certificate of Qualification

I, Kurt T. Katsura, of P.O. Box 51346, Eugene, Oregon do hereby certify that:

1. I am a registered Professional Geologist in the State of Oregon RG # 1221 and


hold the designation of Consulting Geologist.
2. I hold degrees of Geology and I hold the degree of Bachelor of Science (1981)
and a Master of Science (1988), both from the University of Oregon.
3. I have been practicing my profession since 1982 (24 years).
4. I was retained by South American Silver Corp. (SASC) to collect data and
write a report on the Laurani Property, located in the canton of Sica Sica, in
the Province of Aroma, in the Department of La Paz, Bolivia. I have visited
the property on April 1, 2004 and March 28, 2006 and have reviewed previous
geological data, geochemical results, and technical reports on the subject
property.
5. I have not received and do not expect to receive any interest, either direct or
indirect, in any properties of SASC and I do not beneficially own, either direct
or indirect, any securities of SASC. I am independent of SASC.
6. I have read the National Instrument 43-101 and Form 43-101F1. This report
has been written in compliance with the National Instrument 43-101 and Form
43-101F1.
7. I am responsible for all sections of this report.
8. This report is based on a review of data, observations made, and samples
taken during my site visits to the Laurani Property.
9. I am not aware of any material fact of material change with respect to the
subject matter of this report.
10. I am responsible for all sections of this report
11. This report is based on a review of data, observations made, and samples
taken during my visits to the Laurani Property.
12. As of the date of this Certificate, 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.

Eugene, Oregon Kurt T. Katsura RG


October 20, 2006 Consulting Geologist

12
Date and Signature Page

The effective date of this report is October 20, 2006.

Seal:

_____________________________________
Kurt T. Katsura Oregon RG # 1221

13

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