FRONTIER PACIFIC MINING CORPORATION
Transcript of FRONTIER PACIFIC MINING CORPORATION
MAP- INEGI: H12D77 Lat: 28° 21' NLong: 108° 50' W
QUALIFYING REPORTon the
SAN FRANCISCO PROPERTYYécora Mining District
Sonora, México.
for
FRONTIER PACIFIC MINING CORPORATION100-853 Richards Street, 3rd Floor
Vancouver, B.C. V6B 3B4Tel: (604) 717-6488 Fax: (604) 684-5950
by
Larry D. Kornze, P.Eng. and Richard R. Redfern, M.Sc., F. GAC.Consulting Geological Engineer Consulting Geologist290 S. Cookson Place 758 E. Thorpe DriveEagle, ID 83616 Spring Creek, Nevada 89815Tel: (208) 939-1662 Tel: (775) 738-6701Email: [email protected] Email: [email protected]
July 2, 2002
QUALIFYING REPORTon the
SAN FRANCISCO PROPERTYYécora Mining District
Sonora, México.
TABLE OF CONTENTS
SUMMARY..................................................................................................................... iii1.0 INTRODUCTION ................................................................................................... 12.0 DISCLAIMER......................................................................................................... 23.0 LOCATION, ACCESS, and PHYSIOGRAPHY .................................................... 34.0 PROPERTY DESCRIPTION AND LOCATION .................................................... 45.0 AREA MINING HISTORY and PRODUCTION..................................................... 86.0 GEOLOGY ............................................................................................................ 9
6.1 REGIONAL GEOLOGY…………………………………………………….96.2 REGIONAL GEOPHYSICAL SURVEYS ……………………………….106.3 PROPERTY GEOLOGY AND DEPOSIT TYPES ................................11
7.0 PREVIOUS WORK BY OTHER COMPANIES................................................... 147.1 MAGUARICHI TARGET...................................................................... 15 7.1.1 ROCK and SOIL GEOCHEM SAMPLING..............................157.2 SAN FRANCISCO – LUPE ALMA TARGET .………………….………16 7.2.1 ROCK and SOIL GEOCHEM SAMPLING..............................16 7.2.2 GEOPHYSICAL SURVEYS .................................................. 17
7.2.3 DRILLING ............................................................................. 177.3 CALIFORNIA - PUERTO LOS HUESOS TARGET........................... 19 7.3.1 ROCK and SOIL GEOCHEM SAMPLING..............................19
8.0 INTERPRETATION and CONCLUSIONS.......................................................... 219.0 RECOMMENDATIONS....................................................................................... 2310.0 PROPOSED BUDGET........................................................................................ 24REFERENCES.............................................................................................................. 25CERTIFICATE............................................................................................................... 27
LIST OF FIGURES
Figure 1. Index Map.......................................................................... following Page 3Figure 2. Regional Location Map.................................................... following Page 3Figure 3. Property Photo ................................................................. following Page 3Figure 4. Property Data.................................................................... following Page 4Figure 5. Regional Stratigraphy...................................................... following Page 9Figure 6. Regional Geologic Map .................................................. following Page10Figure 7. Property Geologic Map.................................................. following Page 10Figure 8. Total Field Aeromagnetic Data ...................................... following Page 10Figure 9. Rock Sample Locations and Gold Assays .................. following Page 12
LIST OF TABLES
Table 1. Concession Holdings, San Francisco Property ............................Page 5Table 2. Rock Geochem Sampling- Maguarichi Target ............................Page 15Table 3. Rock Geochem Sampling- San Francisco-Lupe Alma Target ..Page 17Table 4. Summary of Drilling Results- San Francisco Target ..................Page 18Table 5. Rock Geochem Sampling- California – Puerto Los
Huesos Target ................................................................................Page 20
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SUMMARY
Upon the request of Frontier Pacific Mining Corporation (the “Company”) this
qualifying report has been made on the San Francisco property (the “Property”),
Yécora Mining District, Sonora, México. It incorporates a summary of previous
work, an appraisal of the exploration potential of the Property and makes
recommendations for further work. This qualifying report is based on a compilation
of published and unpublished assessment reports and field examinations by the
authors, one of who is a “qualified person” within the meaning of National
Instrument 43-101 of the Canadian Securities Administrators.
The San Francisco property comprises five government mineral concessions,
totaling 1,287 hectares, located 9 kilometers east of Yécora, in the southeastern
part of the state of Sonora. The concessions have been registered under the
names of Minera Holmex, S.A. de C.V. and Manuel Alberto Weber Ramirez, and
have been optioned to Frontier Pacific Mining Corporation. The Property, which is
near Yécora, is situated approximately 290 kilometers east of Hermosillo, near the
Chihuahua State border. Access is by the main, Hermosillo-to-Chihuahua highway
for 15 kilometers east of Yécora, and then south for 2 kilometers via un-maintained
dirt road. The Property is in a pleasant, forested area at an elevation of 1600
meters, whose climate is favorable for year-round mining, and a trained, mining-
industrial workforce is available in the area.
The San Francisco Property is situated within the Sierra Madre Occidental (“SMO”)
geologic-physiographic province, which is host to many world-class Tertiary volcanic-
related precious metal mines and deposits, such as the Tayoltita and Mulatos mines,
and the Ocampo, Dolores, El Sauzal, Moris Mine, and Pinos Altos deposits.
The mining history of the San Francisco area is poorly documented, and no
production records have been found. The San Francisco open pit mine may have
been the first developed mine in this region, reportedly in 1873, having a 30-meter
shaft sunk on the high-grade main gold zone. A decline and adits were developed at
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the nearby Lupe Alma mine to the south, but the dates of development are not
known. High-grade gold ore reportedly was developed at the California Vein system
in the southern part of the Property. The fairly extensive mine workings at Los
Cumbres, Nueva York, and Santo Niño were developed on a small scale prior to
1940 for high-grade gold and Cu-Pb-Ag-Zn veins, and by slightly larger-scale, tank
flotation and leach operations prior to 1988. A limited exploration drilling program
was conducted in the mid-1990s, and perhaps earlier, in the San Francisco area.
The other companies who worked in this area drilled at least eight holes, mostly
shallow, on the Property. No holes have been drilled to intersect the vein systems at
depths of more than 200 feet below the surface. Limited gold mine production is
presently taking place at the Mina Santo Niño, east of the Property. No Mineral
Reserves were blocked out by any of the previous lessee parties. Some high-grade
gold drill intercepts were encountered at the San Francisco Mine.
The regional and local geology at San Francisco consists principally of Tertiary-age
rocks of volcanic origin, belonging to 1) the Lower Volcanic Series (“LVS”),
principally andesitic strata, dikes, and breccia bodies, and 2) to the overlying Upper
Volcanic Series (“UVS”), principally dacitic to rhyolitic strata, and dikes. No
Mesozoic or Paleozoic basement rocks are exposed on the San Francisco
property. Mineralized granitic dikes and a pluton are exposed in the Nueva York -
California area. These intrusives cut the LVS andesitic strata. Surficial alluvium
and colluvium cover parts of the Property area. The depth to basement below the
SMO volcanics is not known.
Structurally, the San Francisco area is broken by numerous N- to NW, WNW- and
NE-trending, high-angle normal faults. WNW-trending fracture zones and airphoto
lineaments suggest that a circular caldera system could have been present just south
of the Property. Certain of the later(?) NW and NNW fractures may have been
related to radial fractures off from the circular features, and some certainly are related
to later Basin and Range – type extension. Alteration consists of propylitization,
argillization, silicification, and the alteration and mineralization appear to be controlled
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by these structures. The higher-grade gold-silver mineralization occurs in epithermal
veins of mid-Tertiary age, associated with late-phase silicification and sulfides,
predominately pyritic. Base metal and silver sulfides are present in high-grade vein
exposures in the San Francisco open cut area. Oxidation of the sulfides is limited, as
fresh sulfides usually are present within a few meters of the surface.
The main exploration targets on the Property are low-sulfidation Epithermal-Type
volcanic-hosted, quartz-gold-(pyrite) vein systems, and breccia bodies in UVS rocks,
in an area of approximately 4 km2. The vein systems have three primary
orientations: NNW, NE, and WNW. The former two vein systems have steep to
vertical dips, and the WNW-trending veins have steep dips. The individual vein
systems were typically 2 to possibly 8 meters thick, with individual vein segments up
to 1 kilometer in length.
Significant gold assays were returned from the sampling conducted on the
Property area. The vein systems are exposed vertically over less than 150 meters
of elevation, with the best gold-silver grades shown at the lowest exposed levels.
The base elevation of the gold-silver system is not known in the Yécora region or
the Property area, but if it is similar to the nearby Ocampo mining district, it may
have a total vertical ore system extent of 700 meters.
It is recommended herein that Frontier Pacific Mining Corporation conduct a Phase
1 program consisting of geologic mapping, sampling, and excavatory trenching, to
define the surface extent and grade of gold-silver mineralization. Contingent upon
the receipt of favorable results from this program, it is recommended that the
Company then continue on and proceed with a Phase 2 program, consisting of a
drill program on the prioritized targets, of two 150-meter diamond core drillholes to
test strategic targets in gold-silver vein systems on the Property.
1.0 INTRODUCTION
Upon the request of Frontier Pacific Mining Corporation (the “Company”), an
evaluation and this qualifying report have been made on the San Francisco property
(the “Property”), Yécora Mining District, Sonora, México, to summarize previous work,
appraise the exploration potential of the Property, and make recommendations for
future work.
This report is based on company property evaluation reports, a compilation of
published and unpublished data, maps, and reports made by persons cited below,
and field examinations of the Property and nearby and mines in the region made by
the writers over the last several years. The senior writer examined the Property
most recently on April 20, 2000, and the junior writer surface sampling on the
Property in the fall of 2000 on behalf of Barrick Gold Corporation.
Limited mining for gold and silver was conducted on the Property in the San
Francisco mine area, perhaps as early as 1873. An open cut was excavated and
mining on the Colón vein system took place. The Property vendor and his family
also conducted limited small-scale mining in 1990 in this area.
The last substantial work conducted on the Property was by Pacific Rainier de
México, who in 1995 conducted sampling, geological mapping, and drilled 8 holes on
the Colón vein system in the San Francisco open cut. Other companies, which
worked on the Property include Minera Car, S.A., who may have drilled 3 holes in
1984 on the Colón vein system (Rodríguez S., 1995). Compañia Minera Junipero,
S.A. de C.V., Sierra Nevada Gold, Phelps Dodge, and Barrick also conducted
examinations of the Property.
A property description is given in metric units and terms of reference. These data
are discussed and interpreted, and recommendations are made for further work.
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2.0 DISCLAIMER
The writers did not have written descriptions of the sampling and quality-
assurance, quality control (“QA/QC”) procedures followed by previous lessees, nor
has he examined any drill cuttings or cores, nor all of the original assay data sheets
from the Property. These data were not available to the writers at the time of
writing of this qualifying report.
Much of the information known about the early work at the San Francisco mine
was derived from personal conversations with the property vendor, Mr. Alberto
Weber Ramirez, and is not published or elsewhere publicly available. Thus, any
conclusions made about historical work on the San Francisco and California mines
on the Property and its gold-silver mineralization should be framed within this
context, and the fact that such gold mining is reported to have occurred on theProperty is not necessarily indicative of any mineralization which may bepresent on the Property that is the subject of this technical report.
Some of the opinions expressed in this report were from other persons known by
the writers, and do not necessarily represent the opinions of the writers.
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3.0 LOCATION, ACCESS, and PHYSIOGRAPHY
The San Francisco Property is situated approximately 290 kilometers east of
Hermosillo, near the Chihuahua State border. Access is by the main, Hermosillo-
to-Chihuahua Highway 16 for 15 kilometers east of Yécora, a logging town and the
regional population center with about 5,100 people, and then south for 2 kilometers
via un-maintained dirt road. Passable dirt roads traverse most of the Property area
(Figures 1, 2).
Minor supplies are available at Yécora. The capital city Hermosillo has all needed
equipment, supplies and services available for mining companies to carry out full
sequence exploration and mining development projects. The people in the area are
friendly, with no local conflicts noted.
The Property is in relatively flat to hilly plateau terrain, with elevations between 1,500
meters on certain valley floors to 1850 meters on the highest hilltop in the southern
part of the Property. The main Colón vein system at the San Francisco Mine (Figure
3) is exposed at elevations of 1620 to 1700 meters. The mesa-like nature of much
of the topography would give a mine operator wide latitude in the siting/placement
of minesite, tailings, or heap leach facilities.
The Property has a moderate cover of pine trees, oaks, and shrubs, typical of the
Sierra Madre Occidental at these elevations. The temperatures are moderate year-
round, being cool during the winter, with occasional light snowfalls, and are warm
during the summer with cool nights. Strong rains occur only occasionally during the
summer rainy season, and exploration and mining may be conducted year-round.
The Property has not had reported water shortages, but no aquifer testing has been
done to date. A trained mining-industrial workforce is available in the area.
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4.0 PROPERTY DESCRIPTION AND STATUS
The San Francisco Property area comprises 5 exploration concessions, totaling
1,287 hectares, granted by the owner, the Mexican federal government, as listed in
Table 1. The mineral zones and exploration concessions (Figure 4) are located in the
Yécora 1:50,000 map sheet area (INEGI Map H12D77), near latitude 28° 21' N and
longitude 108° 50' W (UTM coordinates 3,137,000 North and 713,000 East, Zone
12R), Municipality of Yécora, Yécora Mining District, Sonora, México.
The concessions form two groups, also outlined in Figures 7 and 9, separated by
approximately 1 kilometer, north south. The concessions within each group are
contiguous with each other. Private ranchers, with whom Mr. Weber Ramirez has
good relations, own the surface estate of the Property, at least in part. In 1995 an
“ejido” ( a community land ownership collective) appears to have existed covering the
Property, as a previous lessee of the Property, Pacific Rainier de México, received a
notice of authorization to conduct exploration from the Comisario then in charge of an
ejido based in Yécora, Mr. Gilberto Valenzuela Molina. There are no apparent legal
conflicts pertaining to the mineral concessions, whose titles were checked by
Engineer David Rosales Esquivel, a registered mineral surveyor. No aquifer testing
or environmental baseline studies have been conducted on the Property.
Frontier Pacific Mining Corporation, a Canadian corporation whose domicile is 100-
853 Richards Street, 3rd Floor, Vancouver, B.C., V6B 3B4, controls a 4-year
exploration contract with option to purchase the San Francisco, Maguarichi, and
Martha 2 concessions from Manuel Alberto Weber Ramirez, a citizen of México
whose domicile is Calle Ignacio De La Llave 8806, Colónia Los Pinos, Chihuahua,
Chihuahua 31416, México. The Company also controls the La Estrella and Chuchu
concessions via lease-option to purchase from Minera Holmex, S.A. de C.V. These
concessions control all of the known mineral systems on the Property.
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The sixth concession listed in Table 1 is the La Esperanza V Fracción 2, whose
owner of record has been Pacific Rainier De México, S.A. de C.V. This small
concession, which has expired but has not been declared free by the government, is
located within the boundaries of the San Francisco concession, south of the Colón
gold-silver vein system. No veins are reported to occur on this concession, but
neither the writers nor their associates have verified this in the field.
The details of these mineral concessions are listed in the following table:
TABLE 1. CONCESSION HOLDINGS, SAN FRANCISCO PROPERTY
CONCESSION LAESTRELLA
CHUCHU MARTHA 2 SANFRANCISCO
MAGUARICHI LAESPERANZAVFRACCIÓN 2
EXPEDIENTE-TITLE NO.
E-82-27953 E-82-27952 E-82-27947 T-197658 T-213063 T-200819
AREA (Has.) 777 305 42 143.3341 20 2.999
CLASS Exploración Exploración Exploración Exploración Exploración Exploración
OWNER MineraHolmex
MineraHolmex
M.A.WeberRamirez
M.A.WeberRamirez
M.A.WeberRamirez
PacificRainier
RECORDDATE
25-April-2002
25-April-2002
0-March-2002
13-Sept-1993
2-March-2001 30-Sept-1994
EXPIRATIONDATE
24-April-2002
24-April-2008
0-March-2008
12-Sept-1999
1-March-2007 29-Sept-2000
COMMENTS Applicationin process
forExplotación
Title
EXPIRED butnot declared
free bygovernment
The concessions listed in Table 1, with the exception of the La Esperanza V Fracción
2, have been acquired by Frontier Pacific Mining Corporation from Minera Holmex,
S.A. de C.V. under an Assignment Agreement between the parties dated May 20,
2002, in consideration of a “Finders Fee Agreement, Mexican Property, San
Francisco” between the Company and International American Resources Inc. (“IAR”)
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dated February 28, 2002. Minera Holmex, S.A. de C.V. (“Holmex”) owned by the
principal of International American Resources Inc., staked the La Estrella and
Chuchu concessions, and acquired the Maguarichi, San Francisco and Martha 2
concessions from Manuel Alberto Weber Ramirez and Martha Azucena Holguin
Lopez (“Weber”), under an “Exploration Contract With Option To Purchase” dated
May 3, 2002. The writers know of no other agreements, other encumbrances or
environmental liabilities that are attached to the Property. The property has been fully
surveyed in accordance with Mexican law, by a registered mineral surveyor.
The agreement between Weber and Holmex stipulates a total purchase price of
US$650,000, with $240,000 to be paid in variable, semi-annual installments over 48
months, and a final payment of $410,000 to be made within the twenty days
following. Weber would reserve a 1.5 percent “net production royalty” from the
Property and all concession areas later staked during the term of the agreement
within a 5-kilometer distance around the Maguarichi to Martha 2 claim areas. This
royalty may be purchased for US$1,500,000 or $500,000 per each 0.5 percent. The
agreement also stipulates work commitments of $25,000 to be spent on work on the
Property during each of the first and second six months that the agreement is in
force; $75,000 to be spent during the 2nd year; $100,000 during the 3rd year; and
$100,000 during the 4th year. In addition, the agreement stipulates that Weber may
conduct mine production from veins on the Property in an amount up to 2,400 tonnes
per year, prior to the exercise of the option to purchase by Holmex. Weber also was
granted a preference right to enable its staking of the adjacent Balila and Ampliación
Santo Niño areas, which have not yet been opened up for staking by the government.
The agreement between IAR and Frontier Pacific Mining Corporation stipulates a
payment of US$10,000.00 by the Company upon assignment of the Holmex-Weber
agreement to the Company, and that the Company is obligated to pay for 7 days of
consulting work per month at a rate of US$400.00 per day to IAR’s associates. In the
absence of work, the Company may pay IAR US$9,000.00 each half year until the
option to purchase the Property is exercised or the contract is terminated by Frontier
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Pacific Mining Corporation. During the term of the contract, the Company is
obligated to pay IAR an amount equal to ten percent (10%) of all exploration
expenditures up to CAD$300,000.00, 7.5% of expenditures between
CAD$300,000.00 and CAD$1,000,000.00, and 5% 0f expenditures greater than
CAD$1,000,000.00, to be paid to IAR in cash or in the shares of Frontier Pacific
Corporation publicly-traded stock. The Company is obligated to pay IAR an amount
equal to US$100,000.00 at the start of production or when the option to purchase the
Property is exercised by the Company.
The Company is obligated to pay all past due and future concession holding fees, all
work obligations stipulated by federal law, Mr. Weber’s costs which were incurred in
the staking and filing of the Martha 2 concession, and to maintain all property rights
which were in existence at the date of signing of the agreements.
Frontier Pacific Mining Corporation must comply with Mexican environmental
regulations in the pursuit of its exploration of the Property. It likely must get
permission from the Mexican environmental agency “SEMARNAT” office in
Hermosillo prior to conducting “significant” surface disturbance, such as trenching,
drilling, or construction of new roads. An appraisal of these obligations should be
made through a Mexican environmental consultant prior to conducting such
disturbances. No permits are needed to conduct sampling and mapping.
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5.0 AREA MINING HISTORY AND PRODUCTION
The writers were not able to find many published details of the mining history of the
San Francisco property area. The only details found were found in summary
reports by Rodríguez S. (1995), Phelps (2002), Medrano (2000), and by oral
communication to the writers by George Phelps, P.Eng. and by Mr. Alberto Weber
Ramirez. No details about the Property have been published by the Consejo de
Recursos Minerales (1994,1994a). The writers did not check the file records of the
mining department in Hermosillo for past production records or other details.
The first reported mining in the Yécora area was at the San Francisco Mine, perhaps
as early as 1873, on the outcropping high-grade Colón gold-silver vein. Miners
excavated the open cut (Figure 3) and sunk a shaft, reportedly to a depth of 30
meters. Drifts and crosscuts were driven away from this shaft, and Pacific Rainier de
México, S.A. de C.V, intersected these workings in drillholes No. 95-1 and -6. Limited
mining was conducted, by an unknown operator, at the Lupe Alma Mine, located 1.4
kilometers SE of the San Francisco open cut. Exploration and limited mining also
was conducted on the California veins (Fig. 7), located 5.5 kilometers SE of the open
cut, where 2 silicified veins 1.5 and 2.5-3 meters thick were reported by Sr. Weber,
with the thicker vein having a zone 1.5 meters wide carrying gold grades of to at least
22.4 grams per tonne (“g/t”) gold. In 1990, Alberto Weber’s family mined and shipped
100 tons of ore, said to grade 17 g/t gold and 1 kg/t silver, from a trench located just
north of the San Francisco open cut. Many prospect pits are located in the Property
area, as at Maguarichi, La Cumbre, Puerto Los Huesos, and Cerro Colorado.
Previous operators constructed no milling or gold processing facilities on the
Property.
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6.0 GEOLOGY6.1 REGIONAL GEOLOGY
The Property is situated in the Sierra Madre Occidental (“SMO”) physiographic
province (McDowell and Clabaugh, 1979; Clark, et. al., 1992), which is composed
principally of volcanic rocks divided into two groups, the andesitic Lower Volcanic
Series (“LVS”) and the felsic Upper Volcanic Series (“UVS”). The SMO is host to
many volcanic-related precious metal mines and deposits, such as La Cienega,
Tayoltita, Dolores, Mulatos, El Sauzal, Pinos Altos, and the nearby Ocampo and
Moris mines (Figure 2).
The oldest SMO lithologic units, exposed in the southeastern part of Chihuahua
and western part of Sonora, consist of clastic sedimentary rocks of Mesozoic age.
These rocks at the Moris Mine are a sequence of graywackes, quartzites, black
phyllites, basalt flows, “intrusives”, and occasional patches of silicified limestones,
were correlated by Valencia Gómez (1996) with the Triassic-Jurassic Barranca
Group strata. They may be further correlated with the black Las Trancas phyllites
of Triassic age which are host to the rich gold veins of the >9,000,000 ounce El
Oro gold deposit in Michoacán-México States. Granitic rocks may form the
basement in certain areas, as in Figure 5, which shows a comparison of certain
stratigraphic sequences in the Sierra Madre Occidental. The basement rocks in
the SMO locally are covered, as at the Moris Mine, by terrestrial polymictic
conglomerates.
A variably thick pile of andesitic volcanic strata of Upper Cretaceous to Middle
Tertiary ages overlies the conglomerates, corresponding to the LVS. It comprises
a variety of flows, flow breccias, and tuffites. A middle Tertiary dacitic sequence of
these rocks locally forms the uppermost part of the LVS sequence, and is often
present in areas which are host to gold mineralization, as at El Sauzal, Chihuahua
(Figures 2 and 5). This LVS composite sequence frequently was intruded,
especially in areas of gold mineralization, by late dikes and plugs of hypabyssal
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andesite to rhyodacite, which post-date the initial cover flows of the overlying UVS
sequence strata. The most common UVS rock types found in exposures of the
SMO are rhyolitic ignimbrite sheets, flows, and dikes/plugs of Middle Tertiary
(Oligocene) age. These UVS sequences may be cut, locally, by andesitic, dacitic,
to rhyodacite-rhyolite dikes and domes. Granitic to dioritic plutonic to dike-form
rocks of variable age and composition intrude the LVS-UVS composite package.
Flows of basalt to basaltic andesite of Miocene age may lie atop UVS rock
sequences, and interformational sedimentary packages also are present locally.
Figure 6 shows the geology of this region, and Figure 7 the geology of the Property.
The mineralization in the gold-silver belt of the Sierra Madre Occidental is
principally of epithermal type, hosted in low-sulfidation silicification,
sulfidation/replacements, and quartz veins, although centers of vein-type to
disseminated high-sulfidation mineralization (Staude, 1995; Corbett and Leach,
1998) also are present. The andesites of the LVS are considered the most
favorable rock unit hosts for mineralization, although gold-silver prospects are
known in all the different rock types. The lithologic contact between the LVS and
UVS sequences is a particularly favorable horizon for gold mineralization in the
SMO, perhaps due to greater permeability than the adjacent rock units. The
basement phyllites below the contact with the LVS also are a preferred site for gold
deposition (e.g. El Oro). The conglomerates above this unconformity are an
untested target. Fault structures, of regional or local scale, play an important role
in the control of most precious metal mineralization in the SMO.
6.2 REGIONAL GEOPHYSICAL SURVEYS
The Consejo de Recursos Minerales has published aeromagnetic data (CRM, 2001)
which covers the Property area and the surrounding region. Figure 8 shows these
data, with reddish areas indicating magnetic highs and blue areas representing
magnetic lows. The most prominent feature shown is a narrow, linear, WNW-trending
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aeromagnetic high, located just SW of the Moris-El Pilar gold-silver mining district.
The WNW-trending “Mojave – Sonora Megashear” (Anderson and Silver, 1979), a
major left-slip mid-Jurassic (?) shear zone, along which 700-800 km of displacement
is postulated (Sedlock et.al., 1993), occurs just north of the Mulatos mine. Structures
of this WNW to NW trend host major, low-sulfidation gold deposits at Ocampo and
Pinos Altos, and one of these structural systems on the San Francisco Property is
roughly parallel with a similar system at Ocampo (Figure 8). The WNW aeromag
high shown on Figure 8 may represent a similar, mega-scale structural feature. In
addition, numerous NNW- to NW-trending gold-silver vein zones are found at Moris,
Ocampo, La Republica, and at San Francisco, which may represent re-activated
ladder-vein, Riedel-type, “link-fault” shear structures connecting major WNW crustal
breaks originally formed during the “Megashear” episode.
6.3 PROPERTY GEOLOGY AND DEPOSIT TYPES
Figure 7 shows the geology of the Property, according to Espinoza (1999), as being a
broad sheet of UVS massive to spherulitic flows, crystalline to lithic tuffites and
volcanic breccias of rhyolitic to dacitic composition, covered by rhyolitic welded tuffs.
Within the UVS are local windows of basement LVS andesitic strata, comprising lithic
tuff and lesser flows and vesiculated amygdular basaltic andesite. A hornblende-
plagioclase monzodiorite porphyry plutonic intrusive stock and associated dikes are
present in the southern part of the Property area near the Nueva York and California
prospects, which locally have intruded the LVS andesites. A porphyritic, feldspathic
quartz monzonite hypabyssal porphyry body was mapped at El Trigo Colón, and a
dike of porphyritic dacite of unknown affinity is mapped as occurring at Maguarichi
(Espinoza, 1999). No basement rocks are exposed on the San Francisco property,
nor is depth to basement known.
Two main types of alteration are reported on the Property. The northern, La Estrella
concession area exhibits argillization and silicification of fractured, brecciated, and
mineralized host rocks. Local areas of quartz-iron oxide veinlets are present,
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presumably after pyritic sulfides. The rocks in the southern part of the Property, on
the Chuchu concession, are affected by propylitization and possibly later-phase
argillization with quartz- iron oxide micro-veinlets. This area may represent a deeper
level of exposure below the UVS-LVS contact, in closer proximity to granitic plutons.
Structurally, from the California prospect (Figure 7) northward, the volcanic strata
strike dominantly NNW to NW, with moderate dips eastward, forming a large graben
structure. This direction of fracturing is associated with the Colón, Lupe Alma,
California, and Las Tapias gold-silver vein systems. In the southern, Chuchu part of
the Property, and earlier(?) WNW-trending set of faults and fractures are present, as
at Ocampo, which control the propylitic, more base metal-rich vein assemblages such
as are exposed in the Nueva York domain. This granitic core area exhibits a strong
circular fracture pattern on aerial photographs of the area.
Gold-silver mineralization is present within shear zones and associated fault gouge,
along with the alteration described above. The early phase (?) mineralization
associated with the WNW- to ENE-trending fault zones in the Chuchu concession
area are veins which are base-metal rich, containing sphalerite, galena, pyrite
chalcopyrite, bornite, and traces of molybdenite and silver sulfides. The samples
taken contain sub- 1 ppm gold values, along with high silver, copper, lead, and zinc,
and molybdenum values of 85-200 ppm Mo.
The main gold phase of mineralization, represented by the Maguarichi, San
Francisco, Lupe Alma, and California vein systems, is associated with NW- to NNW-
trending multi-phase brecciation, silicification and silica-(pyrite?) veining. Most of the
surface exposures are oxidized, but the rocks appear to grade into reduced rocks at
shallow depths. These systems locally carry moderate to high gold values (Figure 9),
with variable silver-to-gold ratios. The mineralization in UVS rhyolite at Maguarichi,
samples of which carried up to 13.08 g/t gold over a width of 2 meters, had low silver-
13
to-gold ratios. The Colón vein system at San Francisco carries moderate gold and
high silver values at higher elevations in the northern part of the system, whereas
below in the San Francisco open cut the vein system, 2 to 3 meters wide, carries
local very high gold values (to 34-102 g/t gold, with visible gold present), high silver,
lead, copper, and zinc values. The Lupe Alma vein system, present at the UVS-LVS
contact, carries low- to high-grade gold values in silicified high and low angle
(contact-?) breccia zones, with low silver and base metals. The California vein
system (Fig. 9), as described by Mr. Weber and assayed by Sanders (1993),
consisted of two quartz or silicified veins, 1.5 to 2.5 meters wide each, on which a
shaft was sunk. Values to 22.4 g/t gold were reported by Sanders, and spot samples
of 50-100 g/t Au were verbally reported by Weber. Neither the writers nor their
associates examined the latter site. The NW-trending system between the California
and Maguarichi systems is 10 kilometers long, though veins are not present
continuously along this entire length. Soil cover makes correlation and lateral tracing
of individual vein systems difficult, away from the prospect workings.
The vertical extent of mineralization on the San Francisco Property is not known, nor
is the depth to basement. Only 100 to 150 meters of vertical extent of the vein
systems is seen at the surface on the concessions.
14
7.0 PREVIOUS WORK BY OTHER COMPANIES
Various parties have conducted sampling programs on the Property, and several
companies have conducted substantive exploration work in the San Francisco
mine area (Fig. 3), as well as the adjacent Nueva York and Santo Niño properties
(Fig. 4). The early history of work on the Property has not been well defined, but
the first company to have been known to do substantive work on it was Minera Car,
S.A. in 1984. The writers have no written record of this work.
Pacific Rainier de México, S.A. de C.V. explored the property in 1995 (Maynard,
1995a, 1995b) and drilled 8 shallow holes in the San Francisco mine area (Fig.
10). They conducted surface rock and soil geochemical sampling, partly under the
supervision of Ing. Rodolfo Rodríguez and Greg Maynard, but only a summary
report of this work was available to the writers (Rodríguez S., 1995), that did not
include detailed sample locations or drillhole locations.
Phelps Dodge Exploration examined the Property (Espinoza, 1999), conducted
reconnaissance geologic mapping and rock geochem sampling, and discontinued
work on the Property after this effort. George Phelps, P.Eng. and Robert
MacKenzie examined and sampled the Property in 2000 (Phelps, 2000).
The writers examined the Property in 2000 for Barrick Gold Corporation, and
contracted Ing. Luis Medrano (Medrano, 2000) to sample selected parts of the
property. Barrick abandoned the Property without conducting further work.
No material exploration work has been done on the Property after Barrick in 2000,
and prior to its acquisition by Frontier Pacific Mining Corporation.
15
7.1 MAGUARICHI TARGET
The Maguarichi target (Figs. 7, 9) comprises zones of brecciation and multi-phase
silica- iron oxide veining in fractured, argillized rhyolitic or altered andesitic strata
near the UVS-LVS contact, breccias and dikes. The length of the mineral system is
not known, but system widths vary from 3 to at least 8 meters, where sampled.
The area is covered by substantial overburden, but moderate to high gold values
were found in sampling by Barrick, Mr. Weber, and by Dr. Fred Warnaars.
7.1.1 ROCK and SOIL GEOCHEM SAMPLING
The available outcrops were sampled by the junior author, Dr. Fred Warnaars, and Luis
Medrano, taking rock chip samples by hand. The samples were analyzed by fire assay and
Induction Coupled Plasma trace element geochem techniques by Chemex Laboratories in
Chihuahua City. A zone of moderate to high-grade gold-silver mineralization was found,
localized in the brecciated rhyolites, the bounds of which could not be determined, due to
colluvial overburden. The samples show low pathfinder trace element concentrations.
Significant results of the rock sampling included:
TABLE 2. ROCK GEOCHEM SAMPLING- MAGUARICHI TARGET
Sample No. Sample typeWidth
(m)Analyses (ppm = g/t)
Au Ag As Cu Hg Pb Zn SeComments
Mag-2 Channel 6 meters 6.51 33 18 50 0.24 30 58 0.2 RRR, pit-cut, late NEfracs
654350 Channel 3 meters 7.68 68 22 36 0.39 28 60 0.8 LMH, same pit
00213 Channel 2 meters 13.8 30.2 12 32 0.12 38 26 n/d FWW, multi-phase silicabreccia in rhyolite,reddish qz, minzd matrix,N43W trending minz??
n/d = no data n/a = not applicable
16
7.2 SAN FRANCISCO – LUPE ALMA TARGET
The San Francisco – Lupe Alma target (Figs. 7, 9) comprises zones of fault-
controlled brecciation and multi-phase silica-sulfide-oxide-iron oxide veining in
fractured, argillized LVS andesitic strata and fault breccias dikes, near the contact
with the UVS. A 10+ meter wide hanging wall zone of argillic alteration is present
in the San Francisco open cut. The veins have been termed the “Colón” vein
system at the San Francisco mine, and extends roughly from what is called the
“Silica Trench” at 3,137,980N for 1.5 kilometers southeast, to the south end of the
San Francisco open cut. The system, offset by faults, may extend southeastward
for an additional 1.5 kilometers to the Lupe Alma area. Widths vary from 2 to as
much as 10+ meters at the Silica Trench, where sampled. This area is covered by
substantial overburden, but is moderately well exposed in the San Francisco open
cut, where high gold-silver values were found in the rock chip sampling.
7.2.1 ROCK and SOIL GEOCHEM SAMPLING
Many of the available outcrops in the San Francisco – Lupe Alma target area were
sampled by Barrick, Dr. Fred Warnaars, Luis Medrano, and Espinoza (1999), taking rock
chip and channel samples by hand. The samples were analyzed by fire assay and
Induction Coupled Plasma trace element geochem techniques by Chemex Laboratories
in Chihuahua City.
Zones of moderate- to high-grade gold-silver mineralization were found, localized in the
andesitic fault breccias. The high-grade areas sampled show occasional visible gold,
local amethystine quartz, local galena and wulfenite-mimetite, local argentite, sphalerite,
azurite, chrysocolla, and a variety of weathering oxidation products from these minerals.
In contrast to mineralization in the UVS, higher base metal- and pathfinder trace element
concentrations are found in the Colón vein system.
17
Significant results of the rock sampling included:
TABLE 3. ROCK GEOCHEM SAMPLING-SAN FRANCISCO – LUPE ALMA TARGET
SampleNo. Sample type
Width (m) Analyses (ppm = g/t)
Au Ag As Hg Cu Pb Zn SeComments
00214 Float grabs n/a 0.055 <0.2 4 <0.01 7 30 16 n/d “Silica Trench” bandedupper-level quartz stringerzone, FWW sample
654525 Channel 1.3 meters 2.46 582 42 3.61 221 960 778 0.2 S.F. N Trench, Webermining 1990, LMH sample
654517 Channel 1.5 meters 33.81 402 94 0.89 767 .78% .18% 0.2 At S.F. open cut near shaft,vis. Au,AgS,gal,sphal,wulf
654532 Channel 2.0 meters 2.88 45 8 0.13 5 18 10 0.2 Lupe Alma decline, strong
silicified argillic andesite atUVS contact; with hematite
n/d = no data n/a = not applicable
7.2.2 Geophysical Surveys
The only geophysical survey over the Property that the writers are aware of was a
“Fraser Filter” VLF (very low frequency) survey by Maynard (1995), at the San
Francisco open cut. Maynard delineated two parallel “conductivity anomalies”, one
atop the main Colón vein and one 50-60 meters to the east.
7.2.3 DRILLING
Eight holes were drilled into the San Francisco open pit area, sited along a NNW-
SSE line just east of the outcropping Colón vein, by Pacific Rainier in 1995, as
listed in Table 4. The writers were able to locate only one of these drillsites with
certainty (712974E, 3136565N), from which DDH-1 and DDH-6 were drilled, due to
the lack of adequate maps and geographic coordinate data provided to the writers
18
by past lessees. Pacific Rainier drilled the holes using diamond core drilling, but
the methods of core handling, preparation, core splitting and sampling used are not
known. These core samples were assayed by Acme Analytical Laboratories, a
large, professionally accredited assay laboratory, which operates according to
industry standards. The junior writer did review copies of original assay
certificates, but did not have access to geologic logs of the drillholes or
documentation of sampling, bagging, security, and transportation practices used in
the drilling programs of Pacific Rainier. A summary of the significant results from
each of the known drillholes completed at the San Francisco prospect is given in
Table 4. No true thicknesses were given or calculated for the drill tube-length
intervals given below, which shows gold and silver values in grams per tonne.
TABLE 4.
SUMMARY OF DRILLING RESULTS, SAN FRANCISCO TARGETAssayReport TOTAL GRADES
DH Number DATE COMPANY DEPTH ANGLE BEARING INTERVAL g/t Au / Ag(meters) (meters)
DP-1 5/11/95 Pacific Rainier 11 -70 S80dW 0-.091 49.7 / 283.6DP-1 5/11/95 Pacific Rainier 0.91-3.66 0.6 / 39.0DP-B 5/11/95 Pacific Rainier 9.15 -60 S80dW 0-0.91 3.4 / 318.5DP-B 5/11/95 Pacific Rainier 0.91-1.82 0.2 / 184.6
DDH-1 8/12/95 Pacific Rainier 55.8 -60 S80dW 48.78-49.09 1.0 / 4.1DDH-1 8/12/95 Pacific Rainier 49.09-49.7 13.2 / 33.9DDH-1 8/12/95 Pacific Rainier 149.7-50.15 24.3 / 160.6DDH-1 8/12/95 Pacific Rainier 50.15-50.91 1.3 / 81.5DDH-1 8/12/95 Pacific Rainier Re-Run 49.39-50.15 29.8 / 142.8DDH-2 8/12/95 Pacific Rainier 27.1 -60 S80dW? None NoneDDH-3 8/12/95 Pacific Rainier 59.8 vertical None NoneDDH-4 8/12/95 Pacific Rainier 42.7 ? vertical 42.07-42.68 2.7 / 74.3DDH-5 8/12/95 Pacific Rainier 46.6 -60 S80dW 33.54-38.72 0.24 / 104.5DDH-6 8/12/95 Pacific Rainier 62.2 vertical 61.59-62.2 0.72 / 37.0
Drillholes DDH-1 and DDH-6 were targeting the high-grade Colón vein in the San
Francisco open cut, just south of the location monument (Fig. 3). The drilling
intersected a vein in DDH-1, which carried 29.76 g/t gold and 142.8 g/t silver
between 49.4 to 50.15 meters in the hole, which is nearly a true thickness. Hole
DDH-6 was drilled vertically from the same spot as DDH-1, and was stopped in
19
mineralization at 62.2 meters, because of drilling problems. Jim Sanders (pers.
comm., June, 2002) stated that they may have intersected an old mine working,
and that they had to abandon the hole because they could not cement it.
Hole DP-1 likely was drilled in the open cut directly upon the Colón vein, because
the interval between 0 and 0.91 meters assayed 49.7 g/t gold and 283.6 oz./ton
silver. The collar location of this hole and the others for which the writers had
assay certificates was not exactly known.
7.3 CALIFORNIA - PUERTO LOS HUESOS TARGET
7.3.1 ROCK and SOIL GEOCHEM SAMPLING
The junior writer and Dr. Fred Warnaars collected surface rock chip samples from
the Puerto Los Huesos area, located in the northwestern part of the Chuchu
concession, and southeastward into the Martha 2 concession (Fig. 4). A large
portion of this area is heavily bleached and altered, comprising andesites and
argillized and sericitized intrusive felsic porphyries, perhaps similar to the one
mapped at the Maguarichi prospect by Espinoza (1999). These rocks are cut by
NNW-trending fault zones which contain gold mineralization, The California vein
system is located still further southeast, 200 meters north of the stream junction
with arroyo Nueva York (Fig. 9). Sanders (1993) and Weber described this locality,
which contains NW-trending and WNW-trending silica veins in andesite, carrying
high-grade gold values over 1 – 1.5 meter widths, being similar to the ones in the
Nueva York area further south. A shaft was sunk on one of the California veins
and a 25-meter adit was driven on this vein system, which were not examined by
the writers.
Significant results of the rock sampling included:
20
TABLE 5. ROCK GEOCHEM SAMPLING- CALIFORNIA - PUERTO LOS HUESOS TARGET
Sample No. Sample typeWidth
(m)Analyses (ppm = g/t)
Au Ag As Hg Cu Pb Zn WComments
0227 Float grabs n/a 0.025 3.6 72 0.01 29 162 102 240 Felsic porphyry, argillizedsericitized, minor quartzveinlets, FWW sample
0228 Channel 1.2 meters 5.19 7.8 14 0.01 354 762 158 40 N70W, vertical silica veinw/ py to 6-7% in felsicporphyry, FWW sample
0230 Channel 2.0 meters 2.60 3 30 0.18 411 .34% .16% 50 fault zone, N35 W 69NE,slSiO2, argillic, RRR sample
R2-7 Channel 1.1 meters 22.43 56 n/d California vein
From Sanders (1993)
n/d = no data n/a = not applicable
21
8.0 INTERPRETATION and CONCLUSIONS
The exploration targets on the San Francisco Property are NW- WNW- and possibly
certain NE-trending, moderately to steeply-dipping fault zones which are known to
host epithermal gold-silver mineralization. Breccia zones which cut UVS rhyolitic rock
sequences, such as occur in the Maguarichi area, also are potential hosts for gold-
silver mineralization. Work conducted on the Property by previous investigators has
formed a good geologic and geochemical database framework, from which Frontier
Pacific Mining Corporation may proceed with further exploration, to define possible
new ore zones on the Property.
Maguarichi Target: The Maguarichi target is a high-level, SMO low-sulfidation
epithermal gold-silver system, which appears to be hosted in breccias of
undetermined origin in felsic UVS strata, near the contact with the underlying LVS
andesitic rocks. Mineralization is associated with multi-phase silica veining, and with
fractures systems which have NW and NE trends. The presence of mineralized fault-
controlled vein systems in this area is established, but not whether viable breccia-
hosted systems of economic size and grade occur. The geologic mapping of the
Maguarichi area is insufficient to allow resolution of this problem. Sampling has
established that high-grade gold-silver mineralization does occur, partly in breccias, in
this target area.
San Francisco – Lupe Alma Target: The San Francisco – Lupe Alma targets are
SMO low-sulfidation epithermal fault-controlled vein systems, dominantly in LVS
andesitic rocks. The Lupe Alma system is at the contact with the UVS strata, and has
not been explored at depth by either mine workings or drilling. The Colón vein
system has a deeper, more base metal enriched mineralogy, but exhibits local +34 g/t
gold areas, and has an unusually attractive mineralogy, which potentially could be
exploited for collector’s mineral specimens, such as amethyst, wulfenite-mimetite,
and wire-leaf native gold. Drilling has established the presence of high-grade gold-
silver mineralization at shallow depths below the surface.
22
California – Puerto Los Huesos Target: These targets areas contain SMO
low-sulfidation epithermal fault-controlled vein systems, dominantly in LVS andesitic
host rocks. The Puerto Los Huesos system is insufficiently well mapped to determine
whether intrusive-hosted disseminated gold systems may be associated here with the
felsic porphyry intrusives. The widespread argillic and local sericitic alteration at
Puerto Los Huesos suggests the possibility of this occurrence. Fault systems which
carry elevated gold values also cut these rocks. The high tungsten value found in
one sample (0227) could be indicative of intrusive-hosted mineralization.
The California – San Jose vein systems have not been examined by the writers, nor
are sufficiently well described by others. They appear to be SMO fault-controlled low-
sulfidation epithermal veins in LVS andesites, near contacts with granitic intrusive
rocks which may be older and genetically unrelated to the epithermal quartz-gold
mineralization. The nearby Nueva York veins, which contain lower gold and higher
base metal values, may be an early phase of mineralization associated with the
Tertiary granitic rocks. The California – San Jose veins may be a separate, later-
phase, higher-gold system more similar to the Colón vein system.
The vertical extent of mineralization in the Yécora District has not been established,
as no deep drilling has yet been done. The SMO gold-silver vein mineralization in
the nearby Ocampo District, located 50 kilometers to the east-southeast, also is
associated with WNW to NW-trending regional fracture zones (Fig. 8), and has a
vertical extent of ore grade gold-silver veining of at least 700 meters. Only 100 to 150
meters of vertical exposure below the UVS has yet been tested in the San Francisco
Property area.
23
9.0 RECOMMENDATIONS
In the opinion of the writers, the character of the Property is of sufficient merit to
recommend that the following phased exploration program be conducted:
1) Geologically map and sample the Property at a scale of 1:10,000, using Brunton-
GPS control, and sample any altered and/or mineralized outcrops found during the
mapping effort. Prioritize the existing gold-silver target areas.
2) Trench and doze away overburden over selected target areas to expose bedrock.
Geologically map and sample the new exposures. Re-prioritize the targets areas.
3) Contingent upon favorable results, conduct a follow-up program of drilling two 60-
degree angled HQ wireline diamond core holes to test prioritized, mineralized
breccias, intrusive bodies, and/or structures at depth.
24
10.0 PROPOSED BUDGET
The authors estimated the following budgets on a semi-formal basis:
SAN FRANCISCO PROPERTY
Phase 1: Geologic Mapping, Sampling, Excavation of Outcrop Areas
Property Preparation and Permitting ................................................................... $ 3,000Database Construction, Maps, Imagery, Geophysical Data................................ $ 6,000Set up Field Office ............................................................................................... $ 1,500Field Crew (1 Geologist, 1 geotechnician: 14 days)...........................................$ 11,000Field Costs........................................................................................................... $ 3,000Dozer maintenance of access roads to work areas ............................................ $ 7,000Dozer excavation of gold anomaly outcrop areas ............................................... $ 5,000Assays and Geochemical Analyses .................................................................... $ 7,500Reclamation ........................................................................................................ $ 3,000Data Analysis and Report .................................................................................... $ 3,000
SAN FRANCISCO PHASE 1: SUB-TOTAL............................. CDN$ 50,000
Phase 2: Initial Test Drilling
Permitting ............................................................................................................. $ 1,500Bulldozing new trails to drillsites............................................................................ $ 2,000Field Crew (1 Geologist, 1 geotechnician: 10 days)............................................ $ 8,250Field Costs........................................................................................................... $ 1,000Drilling Costs, 2 holes, 300 meters, HQ core drilling ......................................... $ 36,000Assays and Geochemical Analyses ...................................................................... $ 3,000Reclamation ........................................................................................................ $ 1,250Data Analysis and Report .................................................................................... $ 2,000
SAN FRANCISCO PHASE 2: SUB-TOTAL............................. CDN$ 55,000
TOTAL COSTS, COMPLETED DUAL-PHASE PROJECT CDN$ 105,000
25
REFERENCES AND BIBLIOGRAPHY
Anderson, T.H. and Silver, L.T., 1979, The role of the Mojave-Sonora Megashear inthe tectonic evolution of northern Sonora, in Anderson, T.H., and Roldan, J., eds.,Geology of Northern Sonora: Geol. Soc. Amer., field trip guidebook, p. 59-68.
Clark, K.F., and De La Fuente, L., 1976, Distribution of mineralization in time andspace in the Sierra Madre Occidental province, Chihuahua, México. 25th Intl. Geol.Congress, 55 p.
Clark, K.F., Roldán Q., J., and Schmidt, R.H., 1992, Geology and Mineral Resourcesof Northern Sierra Madre Occidental, México. El Paso Geological Society Field TripGuidebook; No. 24, 479 p.
Consejo de Recursos Minerales, 1994, Monografia Geologico-Minera Del Estado DeSonora, 204 p.
Consejo de Recursos Minerales, 1994a, Monografia Geologico-Minera Del EstadoDe Chihuahua, 297 p.
Consolidated North Coast Industries, 1997, Hollister Property Prospectus Summary:Company report for Great Basin Gold, Ltd., November, 1997.
Cooke, D.R., and Simmons, S.F., 2000, Characteristics and genesis of epithermalgold deposits: Reviews in Economic Geology, v. 13, p. 221-244.
Corbett, G.J. and Leach, T.M., 1998, Southwest Pacific Rim gold-copper systems:structure, alteration, and mineralization: short course manual, III Foro Minero deJalisco, Guadalajara, Mexico, 28 September - 2 October 1998, 235 p.
CRM, 2001, Catalogo de Cartas y Publicaciones, 200-2001: Consejo de RecursosMinerales publications catalog, Pachuca, Hidalgo, Mexico, p. 28.
EMJ, 1996, La Cienaga- Peñoles Newest mine: Engineering and Mining Journal,September, 1996, p. 50-52.
Espinoza, V, 1999, La Esperanza V claim, Municipio de Yécora, Sonora State,Mexico: Phelps Dodge Mexico internal report, 36 p.
Francisco Gold, 2002, Website at www.franciscogold.com, May 19, 2002.
Gammon Lake, 2002, Website at www.gammonlake.com, May 19,2002.
Golden Goliath, 2002, Website at www.goldengoliath.com, May 19, 2002.
26
Maynard, G.B., 1995a, Esperanza V concession, Yécora, Sonora, Mexico: Memo forPacific Rainier de Mexico, S.A. de C.V., dated April 30, 1995, 6 p.
Maynard, G.B., 1995b, Internal Memo: memo for Pacific Rainier de Mexico, S.A. deC.V., dated August 23, 1995, 3 p.
McDowell, F.W. and Clabaugh, S.E., 1979, Ignimbrites of the Sierra Madre Occidentaland their relation to the tectonic history of western Mexico: Geol. Soc. Amer. Bull., v.88, p. 1479-1487.
Medrano, L., 2000, Resumen en el Proyecto Yécora, Sonora, México: report forMexicoro, S.A. de C.V. dated November 11, 2000, 15 p.
Minefinders, 2002, Website at www.minefinders.com, May 19, 2002.
National Gold, 2002, Website at www.nationalgold.com, May 19, 2002.
Peñoles, 2000, Annual report 2000: Corporativo Bal, 2000, p. 34.
Peñoles, 2002, Website at www.penoles.com.mx , May 19, 2002.
Phelps, G.B., 2000, Yécora gold project, Sonora Mexico: report dated September,2000, 38 p.
Reliance Geological Services, 1997, report figure by Peter Leriche, 1 p.
Rodríguez S., R., 1995, Mining-geological study on the La Esperanza V claim,Municipio of Yécora, Sonora State, Mexico, 14 p.
Sanders, I.A., 1993, Memo to Mr. Mark W. Lee, dated October 15, 1993, 19 p.
Sedlock, R.L., Ortega-Gutiérrez, F., and Speed, R.C., 1993, Tectonostratigraphicterranes and tectonic evolution of Mexico: Geol. Soc. Amer. Spec. Pap. 278, 153 p.
Soto B., M.A., and Ibarra S., A., 1992, Mulatos gold deposit, Sonora, Mexico, in Clark,K.F., Roldan, J., and Schmidt, R.H., eds., Geology and Mineral Resources ofNorthern Sierra Madre Occidental, México: El Paso Geological Society, p. 229-238.
Staude, J-M.G., 1995, Epithermal mineralization in the Sierra Madre Occidental, andthe metallogeny of northwestern México: Unpubl. Ph.D. dissertation, Univ. of Arizona,Tucson, 248 p.
Valencia Gómez, V.A., 1996, Mina Santa Maria De Moris, Chihuahua: R. Monreal,C.M. González-Leon, and L. Valenzuela, eds., II Seminario Minero Sonora 2000,Asoc. De Ing. De Minas, Met. y Geol. de México A.C., Distrito Sonora, Memoria deTrabajos, v. 1, p. 82-94.
27
Larry D. Kornze, P.Eng.290 S. Cookson Place
Eagle, ID 83616Telephone/Fax: (206) 939-1662
Email: [email protected]
CERTIFICATE OF AUTHOR
I, Larry D. Kornze, P. Eng., do hereby certify that:
1. I am currently a self-employed consulting geological engineer, doingbusiness under my own name as:
Larry D. Kornze, P.Eng.Consulting Geological Engineer290 S. Cookson PlaceEagle, ID 83616
Tel: (208) 939-1662
2. I graduated with a B.S. degree in Geological Engineering from the ColoradoSchool of Mines, Golden, Colorado, in 1972.
3. I am a Member in good standing with the Society for Mining, Metallurgy, andExploration Inc., and a Professional Engineer with the Association ofProfessional Engineers and Geoscientists of BC (APEG).
4. I have worked as a geological engineer for a total of 30 years inCanada, the United States, Mexico, Central America, Asia, Africa, andEurope since my graduation from university.
.5. I have read the definition of “qualified person” set out in National
Instrument 43-101 (“NI 43-101”) and certify that by reason of myeducation, affiliation with a professional association (as defined in NI43-101) and past relevant work experience, I fulfill the requirementsto be a “qualified person” for the purposes of NI 43-101.
28
6. I am responsible for the preparation of sections 1, 2, 3, 4, and 9 of thetechnical report titled “Qualifying Report on the San FranciscoProperty, Yécora Mining District, Sonora, México” and dated July 2nd,2002 (the “Technical Report”) relating to the San Francisco property. Ivisited the San Francisco property on April 20, 2000.
7. I have not had prior involvement with the property that is the subjectof the Technical Report.
8. I am not aware of any material fact or material change with respect to thesubject matter of the Technical Report that is not reflected in the TechnicalReport, the omission to disclose which makes the Technical Reportmisleading. This report is based on geological assessment reports, raw assaydata, personal interviews and fieldwork, and published and unpublishedliterature researched by me and or provided to me by Mr. Redfern and PacificRainier de Mexico, S.A. de C.V. I have visited the subject property personally.
9. I am independent of the issuer applying all of the tests in section 1.5of National Instrument 43-101.
10. I have read National Instrument 43-101 and Form 43-101F1, and theTechnical Report has been prepared in compliance with thatinstrument and form.
11. I consent to the filing of the Technical Report with any stockexchange and other regulatory authority and any publication by them,including electronic publication in the public company files on theirwebsites accessible by the public, of the Technical Report.
Dated this 2nd Day of July, 2002. “Larry D. Kornze, P. Eng.”_____ [Seal of Qualified Person] Signature of Qualified Person Larry D. Kornze, P.Eng. _”Larry D. Kornze, P. Eng.”__ Larry D. Kornze, P. Eng._______ P.Eng. LicenseNo.__10760__ Print name of Qualified Person