INDEPENDENT REPORT ON THE NICKEL LATERITE RESOURCE - AGATA NORTH ... · PDF fileIndependent...

INDEPENDENT REPORT ON THE NICKEL LATERITE RESOURCE - AGATA NORTH, PHILIPPINES.

Agata North Project, Agusan del Norte Province, Philippines.

For

MINDORO RESOURCES LIMITED Suite 104, 17707 – 105 Avenue Edmonton, Alberta T5S 1T1 Canada

3rd September 2010

Mark G Gifford MSc (Hons), MAusIMM

Independent Report on the Nickel Laterite Resource – Agata North, Philippines 2010

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TABLE OF CONTENTS

Executive Summary ................1 1.0 Introduction ................3 2.0 Location, Description and Tenement Status ................4

2.1 Location 2.2 Property Description 2.3 Tenement Type

3.0 Regional Climate, Resources, Infrastructure, Physiography and Access ..............11 3.1 Climate 3.2 Local Resources and Infrastructure 3.3 Physiography 3.4 Access

4.0 History ..............13 5.0 Geology ..............14

5.1 Regional Geology 5.2 Local Geology 5.3 Laterite Ni Deposit Geology 5.4 Other Deposit Geology

6.0 Mineralization ..............22 7.0 Exploration ..............23

7.1 MRL General Exploration (1997-2000) 7.2 MRL General Exploration (2004-2009) 7.3 MRL Laterite Ni Exploration 7.4 Drillhole Collars Survey

8.0 Sampling and Assaying ..............29 8.1 ANLP Sampling Procedure 8.2 MRL Sampling Protocols 8.3 Laboratory Sampling Protocols 8.4 Internal Check Assays (McPhar and Intertek) 8.5 External Check Assays (MRL) 8.6 Summary

9.0 Data Verification ..............41 10.0 Bulk Density Determinations ..............42 11.0 Resource Estimate ..............44

11.1 Geometric Interpretation 11.2 Exploratory Data Analysis 11.3 Variography and Estimation 11.4 Resource Classification

12.0 Conclusions .............53 13.0 References .............55 14.0 Date and Signature .............57


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LIST OF FIGURES

Figure 1: Map of the Philippines showing MRL Project Areas ................4

Figure 2: MRL Tenements and Projects in the Surigao Mineral District ................5

Figure 3: Map showing broad outline of ANLP and Agata Cu-Au Prospects ................6

Figure 4: Compilation Map showing areas of mapped Ni Laterites within Surigao District ................7

Figure 5: Panoramic view of ANLP showing the main area of laterite development. ..............12

Figure 6: Geological Map of Surigao Mineral District ..............15

Figure 7: Local Geological Map of Agata North Project Area ..............17

Figure 8: ANLP Drillhole Location Map – BHP-Billiton and MRL (2007) Drilling. ..............26

Figure 9: ANLP Drillhole Location Map – All Drilling ..............28

Figure 10: Graphs of Nickel Standards Assays. ..............38

Figure 11: Comparison of Independent Checks and MRL Assays ..............42

Figure 12: Agata North Bulk Density Test Pit Location Map ..............44

Figure 13: Bedrock, Saprolite, and Topography triangulations in cross section with drillholes ........45

Figure 14: Block model, coloured by laterite horizon ..............46

Figure 15: Comparison of composites against the block model for Ni in Saprolite ..............50

Figure 16: Resource classification, Agata North Deposit. ..............51

Figure 17: Grade-tonnage curve, Measured + Indicated, Limonite. ..............52

Figure 18: Grade-tonnage curve, Measured + Indicated, Saprolite. ..............53


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LIST OF TABLES

Table 1: Agata Project Tenements held by Mindoro ..........…...8

Table 2: Climate Averages and Extremes 1961-2000 ……………11

Table 3: NAMRIA Tie Points Technical Description ……………29

Table 4: Ni Standards used at ANLP and frequency ..............33

Table 5: Variance of Original and Internal Laboratory Duplicate Analyses ……………35

Table 6: Variance of Ni Standard and Laboratory Assays ……………36

Table 7: Variance of Field Duplicate and Original Assays .............36

Table 8: Variance of Field Duplicate and Original Assays .............37

Table 9: Variance of Pulp Duplicate and Original Assays .............39

Table 10: Variance of Pulp Duplicate and Interlab Assays .............40

Table 11: Results of Independent Check on Drill Core Assays .............41

Table 12: Summary of Bulk Density Measurements .............43

Table 13: Block Model Properties .............45

Table 14: Basic Statistics, Agata North Deposit .............47

Table 15: Limonite and Saprolite Variogram Models .............48

Table 16: Estimation neighbourhood parameters, Agata North Resource .............49

Table 17: Composites vs blocks comparison .............50

Table 18: Agata North Mineral Resource Estimate as at 16th August 2010. .............52

LIST OF APPENDICIES

Appendix 1: ANLP Cross-Sections

Appendix 2: MRL QA/QC Procedures

Appendix 3: McPhar / Intertek Sample Preparation Procedures

Appendix 4: ANLP Bulk Density Data

Appendix 5: ANLP Resource Estimate – Statistics and Variography


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EXECUTIVE SUMMARY This Ni Laterite Resource report was prepared at the request of Jon Dugdale, Managing Director of Mindoro Resources Ltd (MRL). It is the fifth mineral resource estimate completed for the Agata North Laterite Project (ANLP), and was to estimate a resource post the completion of 2010 infill drilling program located within the known mineralization.

ANLP is located about 47 km north-northwest of Butuan City and 73 km southwest of Surigao City, Mindanao Island, Philippines. The ANLP is one of the projects located within the overall Agata Project, which is covered by the Mineral Production Sharing Agreement (MPSA) Contract Area held by Minimax Mineral Exploration Corp. (Minimax) denominated as MPSA-134-99-XIII and approved by the Department of Environment and Natural Resources (DENR) on May 26, 1999.

The Agata Project is situated along the southern part of the uplifted and fault-bounded Western Range on the northern end of the east Mindanao Ridge. green schists, ultramafics, limestones, andesite and tuff, younger limestones, intrusive, and alluvium are present within the area. The widespread occurrence of ultramafics and serpentinized ultramafics, especially along the broad ridges characterized by peneplaned topography provide a favourable environment for the development of nickel laterites.

The laterite profile in the ANLP consists of the ferruginous laterite, limonite, saprolite grading to the ultramafic rock, from surface to increasing depth. The limonite zone is iron oxide-rich, where the predominant minerals are hematite, goethite and clays, and with moderate nickel content (over 1%), while the saprolite zone has much less iron-oxide, is magnesium-rich, and has a slightly higher nickel content than the limonite horizon in its upper portion.

This report is based on the exploration data that were produced and compiled by MRL. Data verification performed by the author found no discrepancies. Hence the database is considered adequate to meet industry standards to estimate mineral resources.

The resource was estimated by Mike Job, Principal Consultant, Quantitative Group Perth, using the Ordinary Kriging method. The data was domained into 3 ore types, Limonite, Saprolite and Bedrock and within each domain 6 individual elements were estimated and reported upon. The resource estimate is as below:

Classification Horizon kTonnes Ni Co Fe Al Mg SiO2

Measured Limonite 247 1.01 0.12 48 3 1 5 Saprolite 535 1.15 0.03 11 0 18 42

Sub-Total 782 1.10 0.06 23 1 13 30

Indicated Limonite 9,963 0.94 0.11 46 3 1 6 Saprolite 21,847 1.09 0.03 11 1 17 40

Sub-Total 31,811 1.04 0.05 22 1 12 29

Measured + Limonite 10,210 0.94 0.11 46 3 1 6 Indicated Saprolite 22,382 1.09 0.03 11 1 17 40

Total 32,592 1.04 0.05 22 1 12 29


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Inferred Limonite 260 1.00 0.11 45 3 2 10 Saprolite 1,421 1.05 0.03 12 1 17 40

Total 1,681 1.04 0.04 17 1 15 36

In comparison to the August 2010 resource there is an increase of 2.9Mt in the Measured and Indicated. The Ni grade increases slightly compared to the previous estimate (from 1.04% to 1.03%), so contained Ni metal for the Measured and Indicated increases by 10.9% (from 307kt Ni to 340kt Ni). This change was caused by a more controlled ore classification at the saprolite/ bedrock boundary and the utilisation of a smaller parent cell for estimation. Cut-off grades applied to the resource were 0.5% within the Limonite Zone and 0.8% within the Saprolite Zone, these are the same cut-offs that have been applied in all five ANLP resource estimations to date.


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1.0 INTRODUCTION The Agata North Lateritic Nickel resource in the Philippines forms part of the resource base of Mindoro Resources Limited (MRL) and has been under active exploration by this company since 1997, with the first lateritic nickel resource drilling program completed in 2006. Since resource drilling has commenced there have been 4 further drill programs completed, with this report summarising and re-evaluating all the historic data as well as including the latest infill drilling results into the resource estimate. This technical report was prepared at the request of Mr J Dugdale, CEO of Mindoro Resources Limited of Canada [TSX – Venture Exchange]. This is the fourth mineral resource estimate for the Agata North Laterite Nickel Project (ANLP) located within the northern areas of Mindanao, the southernmost Island within the Philippines (Figure 1). The first four technical reports were completed from 2008 – 2009 and were compiled by Dallas M. Cox BE (Min) a qualified person as defined by National Instrument 43-101. All drilling programs have been completed so as to aid in the better estimation of the global lateritic nickel resource at Agata North – this information is to aid MRL in determining the best approach to exploiting the resource in the short to long term. The resource estimate presented in this report has been completed by Mike Job, a qualified geological statistician and Principal Consultant for Quantitative Group (QG) – a geological consulting firm based in Perth, West Australia. The estimation methodology and geochemical modelling used on the resource was defined by discussions with the author and QG so as to provide the most comprehensive and accurate resource estimate possible considering the data spacing and continuity. The author has visited site on two occasions, and has seen the exploration drilling in progress and has been able to review all aspects of the operation. Tony Climie, the managing MRL exploration geologist based in Manila has visited site on numerous occasions and was in charge of all drill programs completed upon the ANLP since 1997. He and his technical staff have provided significant detail to this report and this has ensured the accuracy and completeness of the dataset upon which the author has made few changes or alterations.


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2.0 LOCATION, DESCRIPTION AND TENEMENT STATUS 2.1 Location

The Agata Projects are located within the northern part of Agusan del Norte province in Northeastern Mindanao, Republic of the Philippines. It lies within the Western Range approximately 10 kilometers south of Lake Mainit (Figures 1-2). The Agata Project falls within the political jurisdiction of the municipalities of Tubay, Santiago and Jabonga. The Mineral Production Sharing Agreement (MPSA) Contract Area, encompassing the Agata Projects, is bounded by geographical coordinates 9010’30” and 9019’30” north latitudes and 125029’30” to 125033’30” east longitudes.

Figure 1: Map of the Philippines showing MRL Project Areas

The ANLP is located in barangays Lawigan and Tinigbasan, municipality of Tubay, barangays E. Morgado (formerly Agata) and La Paz, municipality of Santiago, and barangay Colorado, municipality of Jabonga, all in the province of Agusan del Norte. It lies about 73 km southwest of Surigao City and 47 km north-northwest of Butuan City. The majority of MRL’s exploration activities on the project area are located in barangays Lawigan and E. Morgado.


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Figure 2: MRL Tenements and Projects in the Surigao Mineral District


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The Agata South Laterite Project (ASLP) is located in barangays Binuangan, Tagpangahoy, and Tinigbasan, municipality of Tubay. It is under a joint venture agreement with Delta Earthmoving, Inc. (Delta).

The locations of the known mineralized zones on the Agata MPSA relative to the property boundaries are illustrated in Figure 3 and Figure 4. The ANLP mineralized zone, as defined by drilling and mapping to date, lies entirely within the Agata MPSA. Other known nickel laterite zones exist near the southern boundary of the property. Artisanal copper and gold mining is active in the Agata MPSA area and are shown in Figure 3. These are outside the delineated nickel laterite mineralized zones.

Figure 3: Map showing broad outline of ANLP and Agata Cu-Au Prospects

There are no existing mineral reserves within or near the property boundaries. The nearest mine infrastructures, including settling ponds, are those of the SRMI Mine located in between the parcels of the Agata MPSA at the southern boundaries (Figure 4). The National Highway runs parallel to the length of the Agata MPSA, just outside the eastern boundary. In addition, a farm-to-market road transects the northern portion of the MPSA area, near the Tubay River.

2.1 Property Description

The ANLP area is part of the Agata Projects and is covered by the approved MPSA of Minimax denominated as MPSA 134-99-XIII, which is comprised of 66 blocks covering an area of 4,995 hectares (ha) (Figure 2). To the southeast of the ANLP area, and surrounded by the Minimax MPSA, is the Estrella Bautista Exploration Permit (EP) Area denominated as EP 00021-XIII, covering 84.39


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Figure 4: Compilation Map showing areas of mapped Ni Laterites within Surigao District


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ha. This lone claim block is also part of MRL’s Agata Projects and was acquired through an Agreement to Explore, Develop and Operate Mineral Property. The MPSA Contract and the EP areas are located within the Western Range in the northern part of Agusan del Norte province.

The MPSA was approved on May 26, 1999 by the Department of the Environment and Natural Resources (DENR) and was registered on June 17, 1999 with the Mines and Geosciences Bureau (MGB) Regional Office No. XIII in Surigao City. A MOA was signed by Mindoro and Minimax on January 19, 1997. Mindoro assigned all its rights in the MOA to MRL on June 27, 1997. The MOA granted MRL the exclusive and irrevocable right to earn the Option Interests in the project. At present, MRL has earned a 75% interests in the Agata Tapian Main, and Tapian San Francisco and the Extension Projects (tenements acquired after the finalization of the MOA) in the Surigao Mineral District. It also has a further option to acquire an additional 25% direct and indirect participating interest. The 2nd and 3rd exploration periods for the MPSA were July 23, 2004 to July 22, 2006 and February 7, 2007 to February 6, 2009, respectively. The fourth exploration was granted on June 19, 2009. The Agata-Bautista-EP was approved on October 2, 2006 and the first renewal was applied for on September 29, 2008.

Both tenements are in good standing. Since the first Exploration Period in 1999, submission of all quarterly and annual accomplishment reports, and quarterly drilling reports; and the payment of the mandated occupation fees were accomplished by MRL, on behalf of Minimax. The same was done for the Agata-Bautista EP.

Table 1: Agata Project Tenements held by Mindoro:

TENEMENT ID AGATA AGATA-BAUTISTA

PERMIT NUMBER MPSA-134-99-XIII EP-21-XIII

APPLICATION NUMBER APSA-XIII-007 EPA-00080-XIII

DATE FILED (MGB XIII) 4-Jul-97

DATE APPROVED 26-May-99 2-Oct-06

PERMITTEE/ APPLICANT MINIMAX BAUTISTA

LOCATION Jabonga, Santiago, & Tubay, Agusan del Norte Santiago, Agusan del Norte

AREA (ha**) 4,995.00 84.39

STATUS - 4th Exploration Pd. approved-June 19, 2009 1st renewal of EP filed on 29-Sep-08

-ECC granted May 20, 2008

MPSA - Mineral Production Sharing Agreement EP - Exploration Permit

APSA - Application for Mineral Production Sharing Agreement EPA - Exploration Permit Application

The boundaries of these tenements were located by the claimowners on a topographic map and submitted to the MGB-DEMR for approval. A tenement boundary survey approved by the MGB will be required through an “Order to Survey” once a mining project feasibility study has been submitted by the proponent. The coordinates used by Mindoro are those indicated in the MPSA document


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issued by the MGB. The surveyed drillhole collars are tied to a local grid, which in turn is tied to National Mapping and Resource Information Authority (NAMRIA) satellite/GPS points and benchmarks.

The original area of the MPSA was 7,679 ha comprising 99 blocks, but 32 claim blocks with an approximate area of 2,700 ha were later relinquished. This leaves 4,995 ha of the approved Contract area as of May 18, 2000. The details of the original 99 claim blocks may be referenced on Item 6.2, pages 11-13 of the January 22, 2009 NI 43-101 Report on the Agata North Nickel Laterite Project available on sedar.com and Mindoro’s website.

With the issuance of an MPSA covering the Agata Projects, the landuse classification of the area is therefore for mineral production. Those outside the Contract area are essentially classified as timberland. There are no dwellers within the ANLP and ASLP drilling areas. The author is not aware of any environmental liabilities to which the property is subject other than those that fall under the Philippine Mining Act of 1995.

On May 20, 2008, an Environmental Compliance Certificate (ECC) was issued by the DENR to MRL for nickel laterite mineral production covering 600 ha within the Agata MPSA Contract area, including both the Agata North and Agata South projects.

The barangay (village) centers where the projects are located, are mostly populated by Christians. There are some indigenous peoples (IP) that live in the surrounding areas within and outside the Minimax MPSA Contract area. Sitio Coro, Bgy. Colorado is almost entirely populated by IPs while other IP groups have merged with the non-IP inhabitants in barangays E. Morgado and La Paz, municipality of Santiago, and Bgy. Tagmamarkay, Tubay.

MRL, through the assistance of the National Commission on Indigenous Peoples (NCIP) - Regional Office No. XIII, has signed a Memorandum of Agreement with the IPs living within the MPSA Contract Area in 2008 albeit the latter have neither Certificate of Ancestral Domains Claim (CADC) nor Certificate of Ancestral Domains Title (CADT) within the Contract area. The MOA calls for a 1% royalty on gross sales of mineral products to be given to the IPs as provided for in the Indigenous Peoples Reform Act (IPRA) of the Republic of the Philippines.

Areas of nickel laterite mineralization have been mapped at a regional scale in the ASLP located in the southern part of the Agata Projects and are the subject of a Mining Services Agreement between MRL, Minimax and Delta. No drilling or sampling has been carried out in this area prior to the negotiations with Delta. Delta, at its sole cost and risk, may carry out exploration of the ASLP and may select an area of up to 250 ha to advance to production if warranted.

2.3 Tenement Type

An MPSA is a form of Mineral Agreement, for which the government grants the contractor the exclusive right to conduct mining operations within, but not title over, the contract area during a defined period. Under this agreement, the Government shares in the production of the Contractor, whether in kind or in value, as owner of the minerals. The total government share in a mineral production sharing agreement shall be the excise tax on mineral products. The excise tax is 2% of the actual market value of the gross output at the time of extraction. In return, the Contractor shall


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provide the necessary financing, technology, management and personnel for the mining project. Allowable mining operations include exploration, development and utilization of mineral resources.

The approved MPSA has a term not exceeding 25 years from the date of the execution thereof and renewable for another term not exceeding 25 years. It gives the right to the Contractor to explore the MPSA area for a period of 2 years renewable for like periods but not to exceed a total term of 8 years, subject to annual review by the Director to evaluate compliance with the terms and conditions of the MPSA.

The Contractor is required to strictly comply with the approved Exploration and Environmental Work Programs together with their corresponding budgets. These work programs are submitted by the Contractor as requirements in securing the renewal of the Exploration Period within the MPSA term. The Contractor is likewise required to submit quarterly and annual accomplishment reports under oath on all activities conducted in the Contract Area. All the reports submitted to the Bureau shall be subject to confidentiality clause of the MPSA. The Contractor is further required to pay at the same date every year reckoned from the date of the first payment, to the concerned Municipality an occupation fee over the Contract Area amounting to PhP 75.00 per hectare. If the fee is not paid on the date specified, the Contractor shall pay a surcharge of 25% of the amount due in addition to the occupation fees.

If the results of exploration reveal the presence of mineral deposits economically and technically feasible for mining operations, the Contractor, during the exploration period, shall submit a Declaration of Mining Project Feasibility together with a Mining Project Feasibility Study, a Three Year Development and Construction or Commercial Operation Work Program, a complete geologic report of the area and an Environmental Compliance Certificate (ECC). Failure of the Contractor to submit a Declaration of Mining Project Feasibility during the Exploration Period shall be considered a substantial breach of the MPSA.

Once the ECC is secured, the Contractor shall complete the development of the mine including construction of production facilities within 36 months from the submission of the Declaration of Mining Project Feasibility, subject to such extension based on justifiable reasons as the Secretary may approve, upon the recommendation of the Regional Director, through the MGB Director.

Any portion of the contract area, which shall not be utilized for mining operations, shall be relinquished to the Government. The Contractor shall also show proof of its financial and technical competence in mining operations and environmental management.

On February 2005, the Philippine Supreme Court decided with finality allowing for the 100% foreign ownership of the mineral tenement under the Financial and Technical Assistance Agreement (FTAA).

An Exploration Permit (EP) is an initial mode of entry in mineral exploration allowing a Qualified Person to undertake exploration activities for mineral resources in certain areas open to mining in the country. Any corporation may be allowed a maximum area of 32,400 ha in the entire country. The term of an EP is for a period of two (2) years from date of its issuance, renewable for like periods but not to exceed a total term of four (4) years for nonmetallic mineral exploration or six (6) years for metallic mineral exploration. Renewal of the Permit is allowed if the Permittee has complied with all the terms and conditions of the Permit and he/she/it has not been found guilty of violation of any provision of “The Philippine Mining Act of 1995” and its implementing rules and regulations.


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Likewise, the conduct of a feasibility study and filing of the declaration of mining project feasibility are undertaken during the term of the Permit.

3.0 REGIONAL CLIMATE, RESOURCES, INFRASTRUCTURE, PHYSIOGRAPHY AND ACCESS

3.1 Climate

The climate of Jabonga, Santiago and Tubay municipalities where the project area is situated belongs to Type II on the Philippines Atmospheric Geophysical & Astronomical Services Administration (PAGASA) Modified Coronas Classification. It has no dry season with very pronounced rainfall months. Climate averages from 1981-2000 show that peak rainfall months are from October to February. The highest mean monthly rainfall is 308 mm during January and the lowest mean monthly rainfall is 104.8 mm during May while mean annual rainfall is 2027 mm.

Table 2: Climate Averages and Extremes 1961-2000

MONTH

RAINFALL TEMPERATURE RH %

WIND CLOUD AMT (okta)

AMOUNT (mm)

# OF RD

MAX MIN MEAN Dry Bulb

Wet Bulb

Dew Pt.

DIR SPD

Jan 308.0 21 30.1 22 26.1 25.7 24.2 23.6 88 NW 1 6

Feb 211.8 15 30.8 22 26.4 26.0 24.2 23.5 86 NW 1 6

Mar 149.8 16 31.8 22.4 27.1 25.7 24.5 23.7 83 NW 1 5

Apr 107.2 12 33.1 23.1 28.1 27.7 25.2 24.3 82 ESE 1 5

May 104.8 14 33.8 23.8 28.8 28.3 25.8 25.0 82 ESE 1 6

Jun 135.1 16 33.0 23.6 28.3 27.8 25.5 24.7 83 ESE 1 6

Jul 157.5 16 32.5 23.3 27.9 27.5 25.3 24.5 84 NW 1 6

Aug 105.1 12 32.8 23.5 28.1 27.8 25.4 24.6 82 ESE 2 6

Sep 140.2 14 32.8 23.3 28.1 27.7 25.4 24.6 83 NW 2 6

Oct 195.3 17 32.3 23.2 27.8 27.4 25.3 24.6 84 NW 1 6

Nov 193.7 18 31.6 22.9 27.2 26.9 25.1 24.5 86 NW 1 6

Dec 218.4 19 30.8 22.5 26.7 26.3 24.7 24.1 88 NW 1 6

Annual 2026.9 190 32.1 23.0 27.6 27.1 25.1 24.3 84 NW 1 6

Based on Butuan City Synoptic Station


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3.2 Local Resources and Infrastructure

A farm-to-market road was constructed by MRL in 2005 and is currently servicing three (3) barangays in two (2) towns. This road was turned-over to the local government. Road maintenance is being supported by the company.

The drill site and the whole plateau is a fern-dominated (bracken heath) open grassland sparsely interspersed with forest tree seedlings and saplings of planted species. A few secondary growth trees line the streams along the lower slopes. The floodplain of Tubay River is planted with agricultural crops such as rice, corn, banana, squash, etc.

3.3 Physiography

Most part of the Agata Projects spans the NNW-SSE-trending Western Range, which towers over the Mindanao Sea to the west and Tubay River to the east, which drains southward from Lake Mainit. The western part of the area is characterized by a rugged terrain with a maximum elevation of 528 meters above sea level. This part is characterized by steep slopes and deeply-incised valleys. The eastern portion, on the other hand, is part of the floodplain of Tubay River, which is generally flat and low-lying, and has an elevation of less than 30m above sea level.

Within the project area, steep to very steep slopes are incised by gullies and ravines while the central portion is characterized by broad ridges dissected in the west section by a matured valley formation exhibiting gentle to moderate slopes. Elevations range from 200-320m above sea level extending similar topographic expressions going to the south. In the northern expanse, it abruptly changes to rugged terrain having very steep slopes. Nickel enriched laterite is widespread on the ridges stretching from the central part going to the south.

Based on the initial evaluation of the area, the development of laterite mineralization is extensive, but not limited to the broad ridges and is present on gently-moderately sloping topography. The topography over the principal laterite development together with the position of the area of detailed drilling is shown in Figure 5 below.

Figure 5: Panoramic view of ANLP showing the main area of laterite development.


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3.4 Access

The ANLP site is accessible by any land vehicle from either Surigao City or Butuan City via the Pan-Philippine Highway. At the highway junction at Barangay Bangonay, Jabonga, access is through partly cemented, gravel-paved Jabonga Municipal road for approximately 4 km, then for another 6 km thru a farm-to-market road to Barangay E. Morgado in the municipality of Santiago. From Manila, daily flights are available going to Butuan City. Moreover, commercial sea transport is available en-route to Surigao City and Nasipit (west of Butuan City) ports.

An alternate route is available from the Pan-Philippine Highway via the Municipality of Santiago. From Santiago town proper, barangay E. Morgado can be accessed through a 1.5 km municipal-barangay road going to Bgy. La Paz, thence by pump boats. The travel time is about 15 minutes via the Tubay River.

The northern portion of the ANLP can be reached from Bgy. E. Morgado by hiking for about 1 hour along existing foot trails (approximately 1.5 km).

4.0 HISTORY The earliest recognized work done within the area is mostly from government-related projects including:

• The Regional Geological Reconnaissance of Northern Agusan reported the presence of gold claims in the region (Teves et al. 1951). Mapped units include sedimentary rocks (limestone, shale and sandstone) of Eocene to mid-Tertiary age.

• Geologists from the former Bureau of Mines and Geosciences Regional Office No. X (BMG-X) in Surigao documented the results of regional mapping in the Jagupit Quadrangle within coordinates 125°29´E to 125°45´ east longitude and 9°10´ to 9°20´ north latitudes. The geology of the Western Range was described as a belt of pre-Tertiary metasediments, metavolcanics, marbleized limestone, sporadic schist and phyllite and Neogene ultramafic complex. (Madrona, 1979) This work defined the principal volcano-sedimentary and structural framework of the region and recognized the allochtonous nature of two areas of ultramafic rocks that comprise serpentinized peridotite in the Western Range, one between the Asiga and Puya rivers in the Agata project area and the other west of Jagupit. These were mapped by Madrona (1979) as blocks thrust westward, or injected into the metavolcanics between fault slices.

• The United Nations Development Program (UNDP, 1982) conducted regional geological mapping at 1:50,000 scale and collected stream sediment samples over Northern Agusan. The UNDP report of 1984 described the geological evolution of this region and included a detailed stratigraphic column for the Agusan del Norte region. Two anomalous stream sediment sites were defined near the Agata project during this phase of work. The Asiga porphyry system that lies east of the Agata tenements was explored by Sumitomo Metal Mining Company of Japan in the 1970’s and 1980’s (Abrasaldo 1999).

La Playa Mining Corporation, financed by a German company in the late 1970’s, explored within the Agata Project area for chromiferrous laterite developed over weathered ultramafic rocks. There were five (5) test pits dug in the area.


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In 1987, Minimax conducted reconnaissance and detailed mapping and sampling. Geological mapping at 1:1,000 scale was undertaken in the high-grading localities, and an aerial photographic survey was conducted and interpreted. MRL established a mining agreement with Minimax in January 1997, and commenced exploration in the same year.

Several artisanal miners are active within the project site since the 1980’s up to the present. These miners are conducting underground mining operations at the Assmicor and American Tunnels area and gold panning of soft, oxidized materials within Assmicor and Lao Prospect areas and of sediments in major streams including that of Tubay River. The region of small-scale mining activity was later named “Kauswagan de Oro” (translated: “progress because of gold”). The majority subsequently left the region for other high-grading areas in Mindanao. In more recent years, a group of copper “high-graders” emerged in the American Tunnels area mining direct-shipping grade copper ore. However, this new trend waned due to the softening of metal prices in the latter part of 2008.

5.0 GEOLOGY

5.1 Regional Geology

The principal tectonic element of the Philippine archipelago is the elongate Philippine Mobile Belt (PMB – Rangin, 1991) which is bounded to the east and west by two major subduction zone systems, and is bisected along its north-south axis by the Philippine Fault (Figure 6). The Philippine Fault is a 2000 km long sinistral strike-slip wrench fault. In the Surigao district, this fault has played an important role in the development of the Late Neogene physiography, structure, magmatism and porphyry copper-gold plus epithermal gold metallogenesis. There has been rapid and large-scale uplift of the cordillera in the Quaternary, and limestone of Pliocene age is widely exposed at 1000-2000 meters elevation (Mitchell and Leach 1991). A cluster of deposits on the Surigao Peninsula in the north consists chiefly of epithermal gold stockwork, vein and manto deposits developed in second-order splays of the Philippine Fault (Sillitoe 1988). The mineralization-associated igneous rocks in Surigao consist mostly of small plugs, cinder cones and dikes dated by K-Ar as mid-Pliocene to mid-Pleistocene (Mitchell and Leach 1991; Sajona et al. 1994; B.D.Rohrlach, 2005).

The basement rocks consist of the Concepcion greenschist and metamorphic rocks of Cretaceous age overthrusted by the pillowed Pangulanganan Basalts of Cretaceous to Paleogene age, which in turn, were overthrust by the Humandum Serpentinite. Its emplacement probably occurred during the late Cretaceous. The Humandum Serpentinite occupies a large part in the tenement area, and through its subsequent weathering the area has a high potential for nickel laterite mineralization. (Tagura, et.al., 2007).

The Humandum Serpentinite is overlain by Upper Eocene interbedded limestone and terrigenous clastic sediments of the Nabanog Formation. These are in turn overlain by a mixed volcano-sedimentary package of the Oligocene Nagtal-O Formation, which comprises conglomeratic andesite, wacke with lesser pillow basalt and hornblende andesite, and the Lower Miocene Tigbauan Formation. The latter is comprised of conglomerates, amygdaloidal basalts, wackes and limestones. Intrusive events associated with the volcanism during this period resulted in the emplacement of


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Figure 6: Geological Map of Surigao Mineral District


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plutons and stocks that are associated with porphyry copper-gold and precious metal epithermal mineralization in the region. (Tagura, et.al., 2007)

Lower Miocene Kitcharao Limestone and the lower part of the Jagupit Formation overlie the Tigbauan Formation. The Jagupit Formation consists of conglomeratic sandstone, mudstone and minor limestone. The youngest stratigraphic unit is the Quaternary Alluvium of the Tubay River floodplain.

Mineral deposits within the region are dominated by epithermal precious metal deposits and porphyry copper-gold. There is a rather close spatial and probably genetic association between epithermal precious metals and porphyry deposits. These deposits exhibit strong structural control. First order structures are those of the Philippine Fault system, which play a role in the localization of the ore deposits, while the second order structures that have developed as a result of the movement along the Philippine Fault system are the most important in terms of spatial control of ore deposition. (Tagura, et.al., 2007)

Other mineral deposits are related to ultramafic rocks of the ophiolite suite and comprise lenses of chromite within harzburgite and lateritic nickel deposits that have developed over weathered ultramafic rocks.

5.2 Local Geology

The Agata Projects area is situated along the southern part of the uplifted and fault-bounded Western Range on the northern end of the east Mindanao Ridge. The Western Range is bounded by two major strands of the Philippine Fault that lie on either side of the Tubay River topographic depression (B. Rohrlach, 2005). The western strand lies offshore on the western side of the Surigao Peninsula, whereas the eastern strand, a sub-parallel splay of the Lake Mainit Fault, passes through a portion of the property and separates the Western Range from the Central Lowlands to the east (Figure 7). These segments have juxtaposed lithologies consisting of at least six rock units including pre-Tertiary basement cover rocks, ophiolite complex, clastic limestone and late-stage Pliocene calc-alkaline intrusive rocks. (Tagura, et.al., 2007)

The rock units within the ANLA from oldest to youngest are discussed below:

Concepcion Greenschist (Cretaceous)

The basement sequence on the property comprises greenschists, correlative to the Concepcion Greenschists (UNDP, 1984), which occur mostly in the central to southern portions of the Agata Project. This rock outcrops in Guinaringan, Bikangkang and Agata Creek as long, elongated bodies. In the northern half, this unit is mapped as narrow, scattered erosional windows. The predominant minerals are quartz, albite, and muscovite with associated chlorite, epidote and sericite. In places, talc and serpentine are the main components. (Tagura, et.al., 2007) The exposure of the schist by the late Eocene implies a metamorphic age of Paleocene or older and a depositional age of early Cretaceous. (UNDP, 1984)


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Figure 7: Local Geological Map of Agata North Project Area


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Humandum Ultramafic (Cretaceous?)

Ultramafic rocks unconformably overlie the basement schist and formed as conspicuously peneplaned raised ground on the property area. These are comprised of serpentinites, serpentinized peridotites, serpentinized pyroxenites, serpentinized harzburgites, peridotites, pyroxenites and lesser dunite, which are fractured and cross-cut by fine networks of talc, magnesite and/or calcite veins. These rocks are usually grayish-green, medium- to coarse-grained, massive, highly-sheared and traversed by meshwork of serpentine and crisscrossed by talc, magnesite and calcite veinlets. The serpentinites in the Agata Projects correlate with the Humandum Serpentinite (B. Rohrlach, 2005). The Humandum Serpentinite was interpreted by UNDP (1984) to be emplaced over the Concepcion greenschists probably before the Oligocene, and before late Eocene deposition of the Nabanog Formation. MGB (2002) classified the Humandum Serpentinite as a dismembered part of the Dinagat Ophiolite Complex, which is established to be of Cretaceous age.

These rocks have potential for nickel due to nickel-enrichment in the weathering profile as observed in its deep weathering into a reddish lateritic soil. (B. Rohrlach, 2005).

Nabanong Limestone (Upper Eocene)

Several bodies of limestone correlative to the Nabanog Formation (UNDP 1984), were mapped in the project area. The easternmost limestone body lies in the Assmicor-Lao prospect region, in the central portion of the property, Guinaringan-Bikangkang area and at Payong-Payong area located at the western side. In the northern half of the property, these limestones occur as narrow scattered bodies probably as erosional remnants. In places, this unit exhibits well-defined beddings and schistosity and crisscrossed by calcite ± quartz veinlets. The limestones outcropping near intrusive bodies are highly-fractured with limonite and fine pyrite, associated with gold mineralization in fractures and show green hue due to chloritization. In places, the limestone is interbedded with thin sandstone, siltstone, and shale beds.

Andesite and Tuff (Oligocene)

Sparsely distributed across the property are narrow bodies of andesite and tuff. Towards the vicinity of Peak 426 at the northwestern part, the andesite occurs as a volcanic edifice. It is generally fine-grained to locally porphyritic in texture. The tuff grades from crystal tuff to lithic lapilli. Several exposures of this unit are described by Abrasaldo (1999) as being strongly fractured adjacent to northeast-trending faults.

Volcanic Intrusives (Upper Oligocene to Lower Miocene)

A series of intrusives of alkalic and calc-alkaline composition occur in close vicinity to Lake Mainit Fault. These include syenites, monzonites, monzodiorites and diorites that are closely associated with gold mineralization as most of the workings and mining activities are concentrated within the vicinity of these intrusive rocks. The syenites are well-observed in the American and Assmicor


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tunnels and consist mostly of potash feldspar. The monzonites are noted in the Lao Area, in the American Tunnel and occasionally along Duyangan Creek. Monzodiorite outcrops in the Kinatongan and Duyangan creeks and sparsely in the American Tunnel. Trachyte to trachyandesite porphyry is noted in the Kinatongan Creek. Diorites were observed in the American and Assmicor tunnels, which occur mostly as dikes. The intrusions in the Lao and American Tunnel prospects have been tentatively correlated with the Mabaho Monzonite (UNDP, 1984).

Kitcharao Limestone (Lower Miocene)

Correlatives of the Kitcharao limestone are scattered through large areas of the Agata Projects area. Minor outcrops of the Jagupit Formation lie in the eastern claim block adjacent to barangay Bangonay (Abrasaldo, 1999).

Recent Alluvium

Quaternary Alluvium underlies the Tubay River floodplain, within the valley between the Western Range and the Eastern Highlands.

5.3 Laterite Ni Deposit Geology

The widespread occurrence of harzburgite, peridotite, pyroxenite, their serpentinized equivalents, serpentinite, and localized lenses of dunite/serpentinized dunite comprise the lithology in the project area. These rocks are confined to broad ridges extending down to the footslopes of the Western Range. The ultramafic bodies are of probable late Cretaceous age, and were emplaced as part of an ophiolite sequence during the Upper Eocene (Abrasaldo, 1999). Schists are also present in the extremities of the laterite area. Several of these rock types were likewise identified in petrographic/mineragraphic analyses of drill core and rock samples as wehrlite (peridotite), serpentinized wehrlite, serpentinized websterites (pyroxenite), websterites, serpentinites and cataclasite. The location of these samples is shown in Figure 7. Lineaments trending NE within the ultramafic (and underlying green schist?) are interpreted as either fault splays or zones of weakness in the area.

Geological mapping in the project area showed favorable development of laterite along the broad ridges characterized by peneplane topography. These areas are where the drilling activities are concentrated. In areas with moderate to semi-rugged topography, erosion proceeds much faster than soil development, hence the laterite is thinner.

In the Agata Project, there are two distinct geomorphic features that have influenced laterite formation and consequent nickel enrichment. The Eastern part of the delineated body has a moderate relief whose bedrocks are exposed in ridge tops and in the nearby creeks. On the other hand, the Western laterite occurs on a low relief terrain and with no exposures of bedrock on its hillcrests. In the Western area, the laterite is well developed and contains thick and highly mineralized limonite/saprolite and transition rocks. The Eastern Laterite Zones contain boulders


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across the laterite profile suggesting transport. Its limonite zone is usually thinner. (A. Buenavista, 2008).

Test pits that were previously excavated by a previous company showed a maximum depth of 9.40 m and an average depth of 4.96 m. All these test pits have bottomed in limonite. Drilling done by QNI, Phils. (QNPH) and MRL showed thicker laterite profile than what was revealed by previous test pitting.

5.4 Other Deposit Type Geology – Agata

The Surigao Mineral District is host to several deposit types. The Philippine Fault has played an important role in the development of the Late Neogene physiography, structure, magmatism and porphyry Cu-Au plus epithermal Au metallogenesis. An intense clustering of porphyry Cu-Au and epithermal Au deposits occurs along the Eastern Mindanao Ridge.

There is a strong structural control on the distribution of Cu-Au deposits in the Surigao district, and a clear association of deposits and mineral occurrences with high-level intrusives and subvolcanic bodies. Most of the centers of mineralization are located along NNW-SSE-trending second-order fault splays of the Philippine Fault, and where these arc-parallel structures are intersected by northeast-trending cross-faults. The Tapian-San Francisco property lies in a favorable structural setting at the district-scale, at the intersection between multiple strands of a NE-trending cross-structure and the Lake Mainit Fault. This same NE-trending structural axis encapsulates both the Boyongan porphyry deposit and the Placer epithermal gold deposits. (B. Rohrlach, 2005)

Most of the known hydrothermal gold mineralization within the district is of low-sulfidation epithermal character developed in second-order splays of the Philippine Fault. The mineralization is predominantly of Pliocene age and is spatially and temporally associated with the Mabuhay andesitic volcanism. Epithermal mineralization tends to be confined to the Mabuhay Clastics and associated andesitic stocks, lavas and pyroclastics, and in older rocks immediately beneath the unconformity at the base of the Mabuhay Clastics. The principal low-sulfidation epithermal-type, carbonate-replacement-type and porphyry-type deposits and occurrences include: vein-type (Tabon-Tabon vein, Plancoya vein); bulk-mineable stringer stockworks (Placer, Motherlode, Mapaso, Nabago); stratabound ore or carbonate-hosted (Siana mine); surface workings in argillized zones (Mapawa, Hill 664, Manpower, Layab, Gumod); placer gold (Malimono-Masgad region); porphyry Cu-Au (Boyongan, Bayugo, Asiga and Madja); high-level porphyry-style alteration (Masgad, Malimono, Tapian-San Francisco) and high sulfidation (Masapelid Island). (B.D. Rohrlach, 2005)

The principal deposit types that are being explored for in the Agata tenement area are:

Porphyry Cu-Au of calc-alkaline or alkaline affinity Low-sulfidation epithermal Au Carbonate-hosted Disseminated Au-Ag Ore Skarn Au-(Cu) Nickeliferrous Laterite

The first four deposit types collectively belong to the broad family of magmatic-hydrothermal Cu-Au deposits that form above, within and around the periphery of high-level intrusive stocks of hydrous, oxidized, calc-alkaline to potassic alkaline magmas that are emplaced at shallow levels in the crust of


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active volcanic arcs. These different deposit types form at different structural levels of magmatic intrusive complexes, and their character is governed by a multiplicity of factors that include depth of magmatic degassing, degassing behavior, host-rock lithology and structural preparation. (B.D. Rohrlach, 2005)

The Agata Projects area has high potential for the presence of one or more porphyry-type Cu-Au hydrothermal systems associated with 3 principal targets, and multiple satellite targets, that are associated with zones of high IP chargeability. Porphyry-style mineralization has been encountered previously in the Agata region by shallow drill holes in targets that are associated with modest IP chargeability anomalies. The Agata Projects possess multiple conceptual target styles such as porphyry, epithermal, Carlin-type and Ni-laterite (Figure 3).

American Tunnels is a small erosional window through ultramafic cap rocks. It is in the center of a six kilometer trend of chargeability anomalies and at a point where the chargeability is near-surface, and actually daylights. It is also associated with extensive alteration, geochemical anomalies, and abundant gold and copper-gold showings. American Tunnels is characterized by a chargeability anomaly, extending over 800 meters by 300 meters. There are over 100 shallow artisanal mines and workings within the trend, but mineralization is mostly obscured by ultramafic cap rock of variable thickness. Where the mineralization is exposed, younger gold mineralization is telescoped into interpreted porphyry copper-gold related mineralization (Figure 3).

Mineralization is at the top of multi-phase intrusives, on the cusp of the chargeability anomaly, and is interpreted as a high-grade, late-stage concentration at the upper contact of the intrusive stocks and dykes, and derived from porphyry copper-gold mineralization below. Petrology indicates mineralization is principally within late, more-fractionated monzonite phases of a syenite, monzonite, monzodiorite and diorite intrusive complex of dykes, sills, and small stocks intruding ultramafic rocks. Mineralization is associated with complex alteration assemblages of chlorite, epidote, actinolite, biotite ± k-feldspar, sericite, magnetite and albite. Copper minerals are chalcopyrite and bornite. These features, as well as the high molybdenum values, are consistent with a porphyry copper-gold setting.

Gold is mined from a honeycombing of shallow (5 to 20 meters) underground workings, estimated to be several hundred meters in extent, within an area of about 200 meters by 225 meters at American Tunnels. Free gold is also present in streams draining ultramafic cap rocks several hundred meters north of American Tunnels. There are also dozens of artisanal gold workings within other erosional windows to the south on the Agata Project.

Having artisanal workings producing both gold and copper throughout the local region indicates that there is significant opportunity within the project area and provides Mindoro with significant opportunity outside of the Ni Laterite resource defined in this report.


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6.0 MINERALIZATION Nickeliferrous laterite deposits are present over a broad region in the Agata Projects area (Figure 4). They are divided into two (2) major areas known as the ANLP and the ASLP. Based on mapping, the former has an area of approximately 286 hectares while the latter comprises about 235 hectares. In the ANLP, drilling is concentrated in about eighty (80) percent of the interpreted nickel laterite mineralization to date.

The laterites are developed over ultramafic rocks that lie along the Western Range. The rock types within the ultramafics are harzburgite, serpentinized harzburgite, peridotite, serpentinized peridotite, pyroxenite, serpentinized pyroxenite, serpentinite with localized lenses of dunite/serpentinized dunite. The ultramafic bodies are of probable Cretaceous age, and were emplaced as part of an ophiolite sequence during the Upper Eocene (Abrasaldo, 1999). Formation of the laterites is thought to have occurred during the Pliocene or early Pleistocene. The largest of the laterite bodies overlies the central ultramafic body (Figure 7).

Initially, MRL undertook aerial photograph interpretations and field inspections, to define areas of potential laterite formation. The soil profile is intensely ferruginous in this region, and relic cobbles of intensely fractured and serpentinized ultramafic rock lie scattered throughout the region of observed laterite development. At higher elevations along the topographic divide, ferruginous pisolites and blocks of lateritic crust were observed developed on an ultramafic protolith.

Nickel laterites are the products of laterization or intense chemical weathering of the ultramafic rocks, especially the olivine-rich varieties like harzburgite and dunite. The high rainfalls and intense weathering breaks down the easily weathered harzburgite and dunite and the more mobile elements of Mg and Si tend to leave the profile at a much faster rate than the less mobile Fe and Ni/Co. Thus high Fe laterite and limonite zones overlie the weathering saprolite of the ultramafic rocks and where erosion of the upper Fe laterite is low quite deep depths can be formed (<10m).

The Ni mineralization is predominantly at the base of the Fe laterite and the top of the saprolite, as this mineral is concentrated in minerals that can hold it within their matrix (limonite and to a lesser degree hematite, goethite and Fe-rich clays in the Fe Laterite, and more primary Mg rich clays (saponite and stevensite) in the ultramafic saprolite. When weathering is very deep, in zones of interpreted crush or fault zones, then more Ni can be located in the Fe laterite, but predominantly the largest Ni enrichment is within the saprolite of the underlying ultramafic rock near the contact zone with the Fe laterite.

Within the saprolitic ultramafic there are areas of more weathering resistant “boulders” and these tend to carry less Ni mineralization than the surrounding more degraded saprolite – this is related to the lower level presence of the Mg rich clays and their capacity to carry Ni and Co within their structure.

Patches of garnierite are present within the saprolite. Abundant garnierite was observed in a trench along the slopes on the western portion of ANLP.


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7.0 EXPLORATION All exploration work on the Agata Project carried out by Mindoro was under the direct supervision of James A. Climie, P.Geol., Exploration Manager. Local staff formed the exploration team with qualified geologists logging all drill core and the site manager also being a qualified geologist.

7.1 MRL General Exploration (1997-2000)

Initial work by MRL on the Agata Project from 1997 to 2000 comprised a geological evaluation conducted by Marshall Geoscience Services Pty Ltd. It was part of a due-diligence assessment of the property prior to entering into a Joint Venture with Minimax. This work suggested that hydrothermal gold mineralization at Agata is related to andesitic or dioritic intrusives, that vein mineralization is representative of the upper levels of a porphyry system and that there is prospectivity for skarn mineralization within limestones on the property (Marshall, 1997; Climie et al., 2000).

The 1st phase of exploration activity commenced in May 1997 in the Assmicor region and consisted of grid establishment followed by soil geochemical survey (1,617 soil samples analyzed for Au, Ag, Cu, Pb, Zn, As), geological mapping plus selective rockchip sampling and petrographic studies. Furthermore, DOZ technologies of Quebec, Canada, interpreted a RadarSat image of the Agata area and generated a 1:50,000 scale interpretation of the region. In addition, MRL re-sampled by channel sampling, five test pits (ATP-1 to ATP-5) excavated by La Playa Mining Corporation. These pits encountered laterite thicknesses of 2.48 to 9.40 meters. The composited assay values for each of the re-sampled test pits range from 0.43% to 0.94% nickel.

The 2nd phase of exploration activities on the Agata Projects was undertaken between June 1999 and December 1999. This included grid re-establishment, geological mapping within the Assmicor Prospect and American Tunnels, ground magnetic survey, soil geochemistry (50 samples), rock/core sampling, petrography and drilling of 11 holes. (Climie et al., 2000).

The soil sampling survey generated widespread Cu and Au soil anomalies. Soil Cu anomalies tend to be closely restricted to mapped intrusions at American Tunnels and Assmicor-Lao. Soil Au anomalies are more widespread and extend into the surrounding and overlying carbonate rocks. In contrast, soil As anomalies appear to be weakly developed over the intrusions but more strongly developed over carbonates. The Cu and Au soil anomalies associated with the Assmicor-Lao prospect region (Figures 10-11) are open to the east beneath the alluvial flood plain sediments of the Tubay River. The potential for an extension of the Assmicor mineralization to the immediate east beneath the Tubay River floodplain is strengthened by the observation that the dikes and intrusives encountered in drilling at

Assmicor dip towards the east, that porphyry-like quartz veins were encountered in drillhole DH 99-11, which lies east of the Assmicor prospect, and the evidence of a resistivity anomaly developing on the edge of the IP survey east of the Assmicor prospect.


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Nineteen surface channel samples were collected in the Limestone Prospect area (Figure 13). Sixteen of these samples yielded grades ranging from 0.02 g/t Au to 0.85 g/t Au. Three of the samples graded 2.79 g/t Au over 3.7 meters, 3.77 g/t Au over 2 meters and 1.48 g/t Au over 3 meters. The channel samples indicate a zone of anomalous gold above 0.1 g/t in rock samples that extends over an area of 100m by 50m in oxidized limestone.

Petrographic analyses by Comsti (1997) and Comsti (1998) reveal that the intrusive rocks at Agata consist of alkalic, silica-undersaturated plutonic rocks. These comprise of syenites and monzonites that display varying degrees of sericitic and propylitic alteration. Potassic feldspar is a primary mineral phase in many of these rocks.

An in-house ground magnetic survey was conducted in 1999. The magnetic data comprised a series of semi-continuous magnetic highs, with values >40250nT, that broadly coincide with the distribution of ultramafic rocks along the western margin of the Lao and Assmicor areas. The magnetic signature decreases gradually westward where the ultramafics are thought to be buried at deeper levels beneath the limestones.

MRL drilled eleven (11) diamond drill holes into the Assmicor and Limestone prospects in 1999 and encountered Au intersections associated with limonitic stockworks in biotite monzodiorite intrusive. These include 18.8m @ 1.13 g/t Au and 24.2m @ 1.38 g/t Au in holes DH 99-05 and DH 99-06, respectively. The intrusives comprise larger biotite monzodiorite bodies that are cross-cut by younger diorite dikes, plagioclase diorite dikes, biotite diorites and quartz diorites. These dikes and intrusive bodies dip predominantly eastward, suggesting that a deeper magmatic source lies to the east, possibly along the trace of the Lake Mainit splay of the Philippine Fault, beneath the alluvial floodplain of the Tubay River. Drillhole DH 99-11, collared east of the Assmicor shaft, intersected porphyry-style quartz-magnetite veins in biotite diorite, quartz diorite and in hornblende-quartz diorite.

7.2 MRL General Exploration (2004-2009)

MRL undertook a third phase of exploration activity in 2004 on the Agata Project. This activity involved gridding, mapping and extensive grid-based pole-dipole induced polarization (IP) geophysical surveying along 30 east-west-oriented survey lines that extend from 7,800 mN to 13,400 mN. The IP data were acquired by Elliot Geophysics International using a Zonge GGT-10 transmitter, a Zonge GDP-32 receiver and a 7.5 KVA generator. A total of 77.10 km of grid were surveyed by pole-dipole IP. The dipole spacing used in the survey was 150 meters. The data were modelled by Dr Peter Elliot of Elliot Geophysics International using inversion modelling.

Induced polarization (IP) surveying on the Agata Project has identified numerous IP chargeability anomalies that form finger-like apophyses at shallow levels, and which amalgamate into larger anomalies at deeper levels. The IP chargeability anomalies tend to strengthen with depth in the core anomaly regions (Southern Target anomaly and Northern Target anomaly). The IP chargeability anomalies attain values that locally exceed 40 msecs, and routinely exceed 20 msecs on most of the IP pseudo-sections from Agata. Weaker modeled IP chargeability anomalies are associated with known mineralization at Assmicor (10-18 msec) and in other satellite positions adjacent to the two cores Northern and Southern target anomalies. There is an indication, from the four plan views of


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the IP chargeability data, that NNW to NW faults may be important in controlling the distribution and shape of many of the IP anomalies at Agata. Faults that lie along these trends are expected to lie in a dilational orientation in relation to the regional stress field associated with sinistral movement on the near north-trending Philippine Fault splay.

Preliminary drilling on the Agata Project was carried out between November 2, 2005 and October 28, 2006. This was conducted under a joint-venture among MRL, Panoro Minerals Ltd. (Panoro), and Minimax. The prospects were highly recommended priority targets for drill evaluation as these prospects exhibit classic stacking of geophysical, geological and geochemical features associated with Philippine porphyry copper-gold systems (Rohrlach, 2005). The preliminary drilling program was aimed to test the area of highest chargeabilities in the North and South Porphyry Targets.

Great operational difficulties were encountered in extraordinarily bad ground conditions. A total of five drill holes with a combined length of only 756.45 meters were completed, four of which were drilled within the North Porphyry Target and one at South Porphyry Target. All five holes were prematurely terminated, not reaching target depths. The chargeability anomalies were interpreted to occur at around 375m below surface (N=4) based on IP geophysical inversion models. The deepest hole bottomed at only 251.20m, a long way from the 500-meter target.

All drill holes have intersected and bottomed in strongly serpentinized ultramafics with very minimal pyrite mineralization. Dr. Peter Elliot, Consulting Geophysicist, affirmed that the serpentine was not the cause of the anomalies, and would only cause a weak IP anomaly.

From 2008 to 2009, underground mapping and sampling (continuous rock chip and grab sampling) of the American Tunnels prospect was undertaken. To date, results of 48 rock samples have been reported by Mindoro. Significant results include an aggregate of 26m @ 1.94 g/t Au; 21.90m @ 3.67 %Cu; and 17.5m @ 2.01% Cu. Results of the underground sampling are incorporated in the rock geochemistry map.

7.3 MRL Laterite Ni Exploration

Lateritic Nickel mineralization was known within the ANLP area since the early 1990’s and grades were confirmed in the development of test pits in 1997 (See Section 7.1). The project since this initial definition has moved ahead so as to better define the resource and to provide better technical information with regards to eventual exploitation.

In June 2004, Taganito Mining Corporation was selected from several interested parties and granted the non-exclusive right to assess the nickel laterite potential of the Agata Project. Taganito carried out two phases of evaluation and reported encouraging results. Forty-eight surface laterite and rock samples were collected from an area of about 300 ha within a much more extensive area of nickel laterite mineralization. Nickel contents range from very low to a high of 2.09%, with most of the values exceeding 0.5%. Taganito considered these values to be within the range that normally cap the secondary nickel enriched zone and have recommended a detailed geological survey and drilling. However, MRL elected to allow Queensland Nickel Phils., Inc. (QNPH) to proceed with a reconnaissance drill program in 2006.


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Since Taganito, exploration has been carried out by the use of open core drilling on a drill pattern that has been successively closed down with each subsequent drill program so as to enhance the accuracy of the future reported lateritic Ni resource. All drilling to date has been completed by the use of small mobile open hole NQ coring rigs, which are highly mobile in difficult to access terrain. Recovery from these drill rigs is high, with losses generally occurring where there are changes in the hardness of the drilled material, causing material to be disrupted at the bit face. The major ore zone is generally a softer material and losses within the ore zones have been minimal at all stages of the drilling programs. A variety of contractors have been used over time, with the drilling rate being the only variation with regards to their performance and sampling rate.

Each of the individual drill programs will be discussed and summarized.

BHP-Billiton (2006)

QNPH, a subsidiary of BHP-Billiton, conducted reconnaissance drilling over the ANLP from January 23, 2006 to April 26, 2006 at an initial drilling grid of 200m x 200m followed by in-fill drilling at 100-m grid spacing. A full report of the drilling program entitled “Evaluation of Preliminary Exploration on Agata Nickel Laterite Prospect of MRL Gold Philippines, Inc, Agusan del Norte, Philippines” was completed by QNPH in June 2006 and submitted to MRL immediately thereafter. A total of 35 holes were drilled over an area of approximately 80 ha, which is 21% of the 340-hectare ANLP. The drillhole locations are incorporated in the MRL’s AGL Drillhole Location Map (Figure 8).

Figure 8: ANLP Drillhole Location Map – BHP-Billiton and MRL (2007) Drilling.


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This drilling program was subsequent to a Memorandum of Understanding (MOU) signed between MRL and QNPH on December 5, 2005. The MOU allowed QNPH to conduct exploration in the property, which also include technical review and geological mapping. It was intended to evaluate and establish resource potential of the area and as a possible Yabulu Refinery ore source, and to present a resource model. QNPH were looking for high Ni / high Fe ore and were not intending to formalise any agreements with MRL until the results of the exploration proved positive.

To evaluate the potential of the ANLP for the Chinese market, MRL commissioned Denny Ambagan to re-evaluate QNPH’s data with the aim of estimating low-grade resources for the Chinese market. Ambagan is a geologist, who worked for Crew Minerals in its Lagonoy and Mindoro nickel laterite exploration areas for three years. An in-house estimate was tabled. QNPH post this estimate did not take up an option with MRL with regards to the ANLP.

MRL Phase 1 (2007)

The first drilling program in the ANLP managed and developed by MRL was conducted from February 22 to August 3, 2007 with 100 holes completed and a total meterage of 2267.12. Drilling was confined to the area defined for an initial DSO operation. The drilling area related to areas covered by initial Exploration Targets A and B. The drilling rate averaged 3.8m / day / drill rig and the recovery of drill core over the program was 88.2%.

MRL Phase 2 (2007/08)

A follow-up infill drilling program in ANLP was started in December 17, 2007 to May 30, 2008, completing 773.12 meters in 48 drill holes (37 new drill holes and 11 twin holes). The purpose of this exercise was to better define the mineralization and extend the initial resource. The drilling rate averaged 4.6m / day / drill rig and the recovery of drill core over the program was 93.9%.

MRL Phase 3 (2008)

From June 18, 2008 to September 26, 2008, step-out drilling was carried out with hole spacing widened to 100m by 100m centers. Drilling totaled 3,601 meters in 225 holes. This program was aimed to drill out the greater part of Agata North resource potential based on areas covered by Exploration Targets C and D. The drilling rate averaged 11.5m / day / drill rig and the recovery of drill core over the program was 95.0%.

A total of 408 vertical holes were completed during the first 4 phases of drilling in the ANLP, including the previous BHP-Billiton drilling. The drilling patterns are all located on a 50m- to 100m-spaced grid. Total meterage is 7,300.83 with an average depth of 17.89m/per hole, a maximum of 46.6m, and a minimum of 4.35m.

MRL Phase 4 (2010)

During 2010 the program continued to infill the resource so as to gain both a greater level of accuracy for the resource estimate, but also to be able to study the variography of the resource within a close spaced pattern combining both high grade limonite and saprolite ores. From April 23, 2010 to July 10, 2010 infill drilling totalled 147 drill holes for 2682 meters of drilling. The drilling rate averaged 13.6m / day / drill rig and the recovery of drill core over the program was 91.5%. Lower recovery is explained by the variably lithified ultramafic in the close spaced pattern to be used for


28

variographical purposes, this is not common throughout the deposit but the location weighting in this program has skewed the recovery data.

For the resource being compiled in this report the total number of drill holes completed is 593 for 10,851.84m meters of drilling with an average drill hole depth being 18.30m. All drill holes completed within the ANLP area are located on Figure 9. All cross sections are in Appendix 1.

Figure 9: ANLP Drillhole Location Map – All Drilling

Summary

All exploration completed to date has been systematic and appropriate with regards to the development of a resource estimate. The author considers the drilling methodology used within the ANLP area and the various sample recovery rates appropriate and accurate with regards to providing a sampling platform for resource estimation.

7.4 Drillhole Collars Survey

Surveying of drill hole collars’ position and elevation was undertaken by MRL surveyors using a Nikon Total Station DTM-332. This, together with the topographic survey of the ANLP is tied to five National Mapping and Resource Information Authority (NAMRIA) satellite/GPS points and benchmarks with certified technical descriptions (Table 3). The Reference System used is PRS 92 or WGS 84, used interchangeably by mathematical conversions.

Consequently, the baseline for the local gridlines is based on 51 MRL control stations. About 65,535 survey points, including drillhole collars, were established with varying shot distances. These are


29

downloaded into the computer by seamless data transfer, imported to MAPINFO, which are then used for the Digital Terrain Modeling to derive the contour map.

Table 3: NAMRIA Tie Points Technical Description

STATION LATITUDE LONGITUDE EASTING NORTHING LOCATION

AGN_45 9°11'07.88738" 125°33'39.04409" 561636.287 1015703.065 SW-end corner of Sta. Ana Bridge, Tubay

AGN_46 9°11'11.29480" 125°33'39.28491" 561643.476 1015807.756 NW-end corner of Sta. Ana Bridge, Tubay

AGN_48 562018.601 1019260.784

AGN_153 9°19'23.02761" 125°33'15.95108" 560907.623 1030913.182 NW-end corner of Puyo Bridge, Jabonga

AGN_154 9°19'14.68259" 125°33'13.72449" 560840.077 1030656.707 NW-end corner of Bangonay Bridge, Jabonga

8.0 SAMPLING AND ASSAYING

8.1 MRL Sampling Procedure

The ANLP QA/QC Procedures for the whole ANLP drilling program was set up by MRL geologists and was followed by all personnel involved in all stages of the program (Appendix 2). This was adapted from the QA/QC Protocols of QNPH for the 2006 drill program carried out on the ANLP. Periodically, the protocols were evaluated and improvements implemented. The core handling, logging and sampling procedures applied in the program are briefly described below.

Core checkers, under the supervision of MRL technical personnel, are present on every drill rig during operation. This is to record drilling activities from core recovery, core run, pull-out and put-back, casing and reaming at the drill site. Once a core box is filled, it is sealed with a wooden board then secured with a rubber packing band. This is placed in a sack and manually carried to the core house some 300m to 1km m from the drill area.

Core logging was carried out in the core shed by MRL geologists. For standardization of logging procedures, the geologists are guided by different codes for laterite horizon classification, weathering scale, boulder size, and color.

After logging, the geologist determines the sampling interval. Core sampling interval is generally at one (1) meter intervals down the hole, except at laterite horizon boundaries, when actual boundaries are used. The sample length across the boundaries is normally in the range of 1.0 ± 0.30m to avoid excessively short and long samples. In the saprolitic rocks and bedrock layers, some sample intervals have lengths greater than 1.30 meters to a maximum of 2.00 meters.


30

8.2 MRL Sampling Protocols

As in all stages of the program, the ANLP QA/QC Procedures (Appendix 2) were diligently followed during the sample preparation and security procedures. The analyses for the first 2,689 core samples were performed by McPhar Geoservices (Philippines), Inc. (McPhar), which follows internationally-accepted laboratory standards in sample handling, preparation and analysis.

For the rechecking of the integrity of laboratory assays, independent consultant Dr. Bruce D. Rohrlach, also a qualified person, provided MRL geologists with sampling procedures in May, 2007 after several site visits. This was incorporated into the QA/QC Procedures.

Following the recommendations of another qualified person, F. Roger Billington in May, 2008, the sampling protocols were slightly modified. The most important modification was the insertion of pulp rejects in the same batch as the mainstream samples. This is to ensure that all conditions in assaying are similar, if not completely the same for both the mainstream and check samples. All of the analyses are completed by Intertek Testing Services, Phils., Inc. (ITS) for analysis using the XRF analytical method, and thus all 8,411 core samples since have been analysed by this group.

The ITS Phils. facility is among Intertek’s global network of mineral testing laboratories. It provides high quality assay analysis of mineral samples for nickel deposit exploration projects. Intertek mineral testing laboratories implement quality protocols.

MRL Core Sampling

During the first two phases of drilling, whole core sampling was conducted for 132 drill holes, and 17 holes were split-sampled. Whole core considering the relatively small core diameter, and to achieve better precision by assaying the largest possible sample.

Whole core splitting was manually performed. The core was laid on a canvas sheet, pounded and crushed by use of a pick, thoroughly mixed, quartered, then the split sample is taken from 2 opposite quarter portions. The other 2 quarters are combined and kept as a duplicate in a properly-sealed and labelled plastic bag and arranged in core boxes according to depth. The duplicates are stored in the core house at the Agata Base Camp, some 1.5 km from the drill area.

For the third and latest drilling phase, split-sampling was conducted to ensure the availability of reference samples in the future (except for 45 drillholes from the third drilling phase). The cores were cut in half using either a core saw or spatula. The remaining half is stored in properly-labelled core boxes at the Mindoro Camp site in Agata.

The sampling interval is marked in the core box by means of masking tape/aluminum strip labeled with the sampling depth. The sample collected is placed in a plastic bag with dimension of 35cm x 25cm secured with a twist tie. The plastic bag is labelled with the hole number and sample interval.


31

After the samples are collected, they are weighed then sun-dried for about 5 hours and weighed again before final packing for delivery to the laboratory. In cases where there is continuous rain, the samples are pan-dried for 5-6 hours using the constructed drying facility or wood-fired oven.

MRL prepared its own sample tags for all samples including pulp repeats, pulp standards, and coarse rejects samples. The samples were placed in a rice sack and then in a crate to ensure the security of the samples during transport.

For all of the 2007 cores and batch 2008 AGL 10, the prepared samples were sent to the McPhar laboratory in Makati City, Metro Manila via a local courier (LBC Express). The samples were carefully packed in craters with proper labels. This was accompanied by an official Submission Form and a Courier Transmittal Form. The crates were transported to Butuan City where LBC Express branches are present. The transportation of the crates containing the samples is always accompanied by designated MRL staff. The courier received the package and provided MRL with receipts indicating contents. For batches 2008 AGL 1, 3 and 6, the samples were delivered by MRL to McPhar’s sample preparation facility in General Santos City. The assaying was performed in their laboratory in Makati City.

Counting and cross-checking of samples vis-à-vis the McPhar Submission Form were performed by McPhar supervisors. Notice is given to MRL if there are discrepancies, otherwise it is understood that sample preparation and analysis will be carried out as requested. A sample tracking, quality control, and reporting system was maintained between MRL and McPhar.

For batches 2008 AGL-13, 16, 18 and onwards, the core samples were delivered to Intertek’s sample preparation facility in Surigao City. Likewise, checking of samples against the list was done upon submission. Once prepared, Intertek-Surigao sends the samples to their assay laboratory in Muntinlupa City, Metro Manila.

The core sampling and logging facility was under the supervision of MRL geologist or mining engineer at all times. This facility was originally within the drill area and is about 300m to 1km from the drill pads, however though logging of the core was completed at the drill rig for the phase 4 drilling, core trays were delivered to Bgy. E. Morgado base camp for sample splitting preparation under the guidance of MRL staff. A civilian guard secures the base camp premises during the night.

The ANLP drilling was directly under the supervision of James A. Climie, P. Geol., Exploration Manager of Mindoro.

Checking of Laboratory Performance

In addition to stringent sampling protocols, QA/QC procedures were also employed following Dr. B. Rohrlach’s and F.R. Billington’s (MRL independent consultants) guidelines. Standard reference materials, field duplicates, coarse rejects and pulp rejects were resubmitted to the analysing laboratory to check the accuracy of the primary laboratory results. A total of 1269 analyses of check samples were used in confirming the accuracy and repeatability of all assays to be used within the resource estimation of the ANLP. Selection of check samples are spread throughout all holes and in various laterite horizons.


32

The field duplicates totalled 325 or 2.93% of the 11,100 mainstream core samples of MRL. Normally, 1 in every 20 core samples is duplicated. The duplicate sample is selected to ascertain that the full range of different laterite horizons is systematically covered. The samples were selected to cover the full range of Ni grades at Agata, and to extensively cover the different stages and spatial distribution of the drill program, so as to provide a representative check on the reliability of the original sample splitting process undertaken by MRL at Agata North. Originally, the splitting method is the same as for obtaining duplicates for storage but 1/4 part of the prepared sample represents the field duplicate while the 3/4 part is the regular sample. For the half-core sampling, the field duplicates were taken by cutting the remaining ½ core into 2. These samples were sent to the laboratory in the same batch and were treated in the same way as the mainstream core samples.

A set of 81 coarse reject samples, comprising 0.73 % of the 11,100 core samples, were submitted to the laboratory where the original samples were analyzed for resampling and assaying. Resampling was done by taking a duplicate split from the coarse rejects and then placing it back into the assay stream for analysis. Again, as in all duplicates, the submitted samples were chosen to cover the natural range of assays. The reanalysis of the coarse reject samples was undertaken as an internal check on the crushing and sub-sampling procedures of the laboratory to ensure that the samples taken for analysis were representative of the bulk sample.

There were two sets of pulp rejects sent for re-assaying. One was sent to the laboratory where it was originally analyzed. A total of 250 pulp rejects were sent under this category. The other set was sent to an umpire laboratory wherein a total of 319 pulp rejects were analyzed. This is to establish reproducibility of analysis and determine the presence or absence of bias between laboratories. Samples were taken on all of the different laterite horizons. Originally, pulp rejects were collected and sent in separate batches. Starting on June 2008, pulps were inserted together with the mainstream samples (1 in each set of 40 samples). The pulp rejects for inter-laboratory checking were sent at a later date.

The umpire laboratory for the 2007 drilling program was Intertek in Jakarta. Selected pulp samples were sent by MRL to Intertek’s Manila office, after which they forward the samples to Jakarta in Intertek Cilandak Commercial Estate 103E, JI Cilandak KKO, Jakarta 12560. Intertek (Jakarta) has acquired an ISO 17025 2005 accreditation from KAN (National Accreditation Body of Indonesia) denominated as LP 130_IDN. This is valid until 2010. With the change of primary laboratory to Intertek Phils., Mcphar becomes the umpire laboratory. In 2008, Mcphar samples/assays were checked by Intertek Phils. and vice-versa.

Nickel standards or certified reference materials are routinely inserted to the batches of core samples sent for assaying. This is done as a double check on the precision of the analytical procedures of Mcphar and Intertek on a batch by batch basis. The standards, which have known assay values for Ni, were provided by Geostats Pty Ltd of Australia in pulverized (pulp) form weighing about 5 grams contained in 7.5cm X 10cm heavy duty plastic bags. Originally, one (1) standard sample is inserted for every batch of 40 to 45 samples. However, there were some standards inserted in smaller intervals of 25-35 samples. Starting with Batch 2008 AGL-18, one standard sample was included in every set of approximately 40 samples. In all, 294 standards equivalent to 2.65 % of the core samples were used.


33

Eighteen types of Ni standards were used with grade ranging from 0.01% to 2 % Ni. Each one comes with a certificate that shows the accepted mean Ni value and standard deviation, which are available in the website of Geostats (www.geostats.com.au). The specific nickel standards and the frequency of using each one are listed in Table 4.

Table 4: Ni Standards used at ANLP and frequency

Ni Standard # Assays %Ni Ni Standard

# Assays %Ni

GBM305-9 32 0.25 GBM906-7

6

0.56

GBM307-13

16

2 GBM996-1

5

1.27 GBM901-1

55

0.8 GBM302-8

6

1.08

GBM903-2

27

0.11 GBM397-6

5

0.03 GBM905-13

41

1.51 GBM901-4

6

0.02

GBM906-8

44

0.55 GBM903-5

10

0.18 GBM398-4

5

0.41 GBM995-4

10

0.03

GBM900-9

5

1.16 GBM997-4

5

0.01 GBM901-2 8 0.88 GBM998-3 8 0.03

9 Standards 233 9 Standards 61

8.3 Laboratory Protocols

McPhar Geoservices (Phil.), Inc.

McPhar carries out high quality sample preparation and analytical procedures. It is an ISO 9001-2000-accredited laboratory and has been providing assay laboratory services to both local and foreign exploration and mining companies for more than 35 years. It served as the primary laboratory for the ANLP drilling. Its address is 1869 P. Domingo St., Makati City, Metro Manila.

Mcphar’s sample preparation procedures and analytical processing are illustrated in the flowcharts below. Each sample is analyzed for nickel (Ni), cobalt (Co), iron (Fe), magnesium (Mg), aluminum (Al), silica (SiO2) and some samples for phosphorous (P). The Ni, Co, Fe, Mg and Al are assayed by dissolving a 25g charge with a two acid digest using hot hydrochloric (HCl) and nitric acid (HNO3) and reading the results by Atomic Absorption Spectroscopy (AAS). The SiO2 and P are analyzed by a gravimetric process.

McPhar has its own Quality Assurance / Quality Control (QA/QC) program incorporated in their sample preparation and analyses procedures. Every tenth sample and samples with "anomalous" results, i.e., samples having abnormally high or low results within a sample batch, are routinely checked. This is done by preparing a solution different from the solution on the regular sample taken on the same pulp of a particular sample.

Intertek Testing Services Phils., Inc.

Intertek Testing Services Phils., Inc. is among Intertek’s global network of mineral testing laboratories. It provides quality assay analysis of mineral samples for nickel deposit exploration


34

projects. Measures are taken by Intertek mineral testing laboratories to ensure that correct method development and quality protocols are in place to produce good quality results.

Each sample is analyzed for nickel (Ni), cobalt (Co), iron (Fe), magnesium (Mg), aluminum (Al), silica (SiO2), CaO, Cr2O3, K2O, MnO, Na2O, P2O5, and TiO2. Whole rock analyses are done using X-ray Fluorescence. The samples are fused using lithium metaborate. XRF analysis determines total element concentrations that are reported as oxides.

For its internal QAQC, Intertek performs repeat analyses plus split sample analyses in every 15-20 samples. Furthermore, on the average, one standard reference material is inserted in every 40 samples, and one blank in every 60 samples.

Flowcharts of McPhar and intertek sample preparation and analysis procedure flowsheets are presented in Appendix 3.

8.4 Internal Check Assays (McPhar and Intertek)

The laboratories of Mcphar and Intertek in Manila have a Quality Assurance/Quality Control programs incorporated in their sample preparation and analyses procedures. The two laboratories regularly conduct duplicate analysis of Ni and other elements as a check on analytical reproducibility within their own laboratories. Repeats are routinely conducted on all elements being analyzed and are typically on every 10th sample for McPhar and on every 20th sample for Intertek. All in all there are 770 (6.94%) repeat analyses that are spread evenly throughout the entire database.

In analyzing the correlation between the original and duplicate sample, the Variance between the primary assay and the duplicate was computed as follows: (a – b) Var = ________ x 100

a

Where: a - is the original sample analyzed

b - is the duplicate sample analyzed and

Var - is the percentage relative difference.

To interpret the Variance value, a value of zero means the two values are identical and the duplication is perfect, a negative value means the duplicate is higher, while a positive value means the original is higher. Values less than 10% variance (either negative or positive), are considered excellent when reviewing comparative samples within lateritic Ni deposit assays. [NB This methodology is used in all sections of Chapter 8.0 Sampling and Assaying within this report.]

There is an excellent correlation for all of the elements within an internal repeat with all below Variances <1% (0.03 – 0.28%) as shown in Table 5, which is consistent with high precision repeatability. There is generally a very even spread of the check assay being both higher and lower than the primary assay which indicates that there is no systematic bias occurring in the check analyses routine.


35

Table 5: Variance of Original and Internal Laboratory Duplicate Analyses

Internal Laboratory Comparitive Statistics

McPhar

Ni Co Fe Al Mg Si Variance from 1st Assay

0.05%

-0.26%

-0.15%

-0.08%

0.28%

0.03%

Duplicates = 1st Assay

98

204

4

98

23

16

Duplicates < 1st Assay

84

38

146

94

137

120 Duplicates > 1st Assay

90

30

122

80

112

136

Intertek

Ni Co Fe Al Mg Si Variance from 1st Assay

-0.06%

0.36%

0.09%

-0.04%

0.33%

0.01%

Duplicates = 1st Assay

15

74

0

5

0

2

Duplicates < 1st Assay

100

73

98

107

105

115 Duplicates > 1st Assay

117

85

134

120

127

115

8.5 External Check Assays (MRL)

MRL has also set up its own QA/QC protocols vis-à-vis the laboratories’ sample preparation and analytical procedures, which the author has observed in the field and analysed the results for this report. The external laboratory checks determine the assaying laboratories to replicate a known standard, the repeatability of the assay from the field splitting and the pulp repeats (i.e external and internal repeats of the primary assays), the consistency of grade between laboratories, and the determination of any bias within the sample preparation process through the analyses of the coarse rejects. It is a comprehensive series of analyses compiled to ensure grade estimates are of the highest calibre.

Nickel Standards

As a double check on the precision of the analytical procedures of both Mcphar and Intertek laboratories, nickel standards were inserted by MRL into the sample runs at approximately 1 to 45 samples on the average. A total of 303 nickel standards, representing 2.73 % of the 11,100 core samples were sent. These standards were purchased from Geostats Pty. Ltd of Australia. Twelve types of standards were used for the whole drilling course to date, with grade ranging from 0.11 to 2.00 % nickel.

Table 6 presents the data standards for nickel for two of the Ni standards used by MRL which were lateritic nickel standards and most closely related to the ANLP samples submitted. From the statistical analyses it is confirmed that the external standards submitted by MRL fell within a small range from the accepted mean, and that comparative statistics were well within acceptable standards. A point to note is that both McPhar and Intertek consistently underestimated Fe for both


36

standards, and though the variation is <3.2% of the Ni standards Fe grade, it was the only example of a systematic variation encountered within the dataset.

Table 6: Variance of Ni Standard and Laboratory Assays

Ni Standard GBM901-1 Ni Standard GBM905-13

Ni Co Fe Ni Co Fe Variance from Std

-1.66%

-8.68% 3.15%

Variance from Std -0.33% -4.25% 1.92%

# Assays = Std 0 0 0 # Assays = Std 0 2 0 # Assays > Std

46

45

0 # Assays > Std

25

20

0

# Assays < Std 9 10 55 # Assays < Std 16 19 41

The graphical representation of the standards data shows that the Ni grade is extremely consistent within the standard and within both standards the check assays vary above and below the standard’s value (Figure 10). However, when a new batch of the same standard was put into the sample runs the minor elements within the standard varied (especially Co), and this indicates the difficulty of ensuring an even spread of the minor elements within a product like a Ni standard. The variation for the minor elements can therefore be explained by batch variation rather than a systematic error within the assaying process.

Field Duplicates

The analytical reproducibility of field duplicate samples is a measure of the representativity of the original split of the sample, a check on the reliability of the sample reduction procedure (splitting) undertaken by MRL at the field area.

The field duplicates were sent together with the regular core samples for assaying. A total of 325 core field duplicates (2.93% of the 11,100 core samples) were analyzed. Of these, 134 were analyzed by Mcphar (1 in 20 cores) while 191 duplicates were by Intertek (1 in every 40 samples).

Table 7: Variance of Field Duplicate and Original Assays

Field Duplicates Comparitive Statistics

Ni Co Fe Al Mg Si Variance from Assay

-0.16%

-2.1%

0.1%

0.3%

-0.6%

-0.9%

(Abs Variance from Assay)

3.30%

7.2%

3.1%

6.1%

9.5%

6.2%

Field Duplicates = Assay

22

81

0

28

9

1

Field Duplicates < Assay

164

133

157

163

154

171 Field Duplicates > Assay

139

111

168

130

158

149

The results presented in Table 7 range from 0.1% to -2.1% for all elements, which indicates that there is an extremely high repeatability for all field samples. When reviewing the Absolute Variance,


37

i.e the maximum variance from the sample average, all values for all elements are still under 10% of the average grade which supports the consistency of the splitting method and the reliability of the assays. Reviewing the split of duplicate samples being higher or lower in grade on average, the total count indicates that there is an equal chance of any duplicate being higher or lower than the original assay.

The author confirms that the field splitting and sampling protocol was excellent and supports the validity of the samples to be assayed for use in estimation purposes for all elements.

Coarse Rejects

The reanalysis of the coarse reject samples was undertaken as an internal check on the crushing and sub-sampling procedures of McPhar and Intertek to ensure that the samples taken for analysis were representative of the bulk sample. The Variance results for the Coarse fraction post crushing in comparison to the primary assay is shown in Table 8.

Table 8: Variance of Field Duplicate and Original Assays

Coarse Reject Comparitive Statistics


-0.04%

4.0%

-0.4%

-0.6%

1.9%

-0.9%


3.38%

10.0%

2.9%

11.3%

13.5%

4.8%

Coarse Rejects = Assay

5

19

0

3

1

0

Coarse Rejects < Assay

42

38

45

46

45

39 Coarse Rejects > Assay

34

24

36

32

35

42

The results presented in Table 8 range from -0.04% to -4.0% for all elements, which indicates that there is an extremely good correlation of the coarse rejects with the passing material that formed the pulp for assaying. When reviewing the Absolute Variance, i.e the maximum variance from the sample average, there are 3 elements (Co, Fe, and Mg), that are more variable and this may be due to specific minerals that may crush less evenly due to hardness or platiness (Corundum for Al as an example) – but even with these minor variances for some minor elements the coarse sample rejects are very similar to the fines material. Reviewing the split of coarse rejects being higher or lower in grade on average, the total count indicates that there is an equal chance of any duplicate being higher or lower than the original assay.

The author confirms that the crushing of the primary sample protocol was excellent and supports the validity of the resultant pulps to be assayed for use in estimation purposes for all elements.


38

Figure 10: Graphs of Nickel Standards Assays.


39

Pulp Rejects Analyzed by Primary Laboratory

A total of 30 of the McPhar pulp rejects during the first and second drilling phases were re-sampled and analyzed representing 1.07% of the 2,793 core samples. These were selected from previously submitted batches covering a range of sample grades, a range of horizons and a range of holes from the core drilling programs, so as to be representative of all the samples.

The method of pulp reject sampling for Intertek Laboratory was modified in June 2008. Starting with batch 2008 AGL-18, pulp rejects were randomly selected one in every set of 40 and were pre-numbered. These pulps were inserted to its assigned numbers right after sample preparation and were analyzed in the same batch as its source. A further 220 pulp rejects were submitted to the completion of the 2010 drill program.

The duplicate pulp analyses were conducted to test for homogeneity of the pulps generated by the two laboratories. Insufficiently milled samples will lead to multiple assaying of pulps with poor precision (i.e. poor repeatability). Inversely, agreement between assays of duplicates of the pulp would indicate that the milling procedure in the laboratory was efficient and generated a suitably homogeneous pulp.

Table 9: Variance of Pulp Duplicate and Original Assays

Pulp Duplicates Comparative Statistics


0.59%

-2.6%

0.0%

-0.6%

-0.3%

0.4%


1.97%

6.0%

1.3%

3.2%

4.5%

2.2%

Pulp Duplicates = Assay

13

58

0

8

1

1

Pulp Duplicates < Assay

102

108

117

147

119

117 Pulp Duplicates > Assay

135

84

133

95

130

132

The results presented in Table 9 range from 0.0% to -2.6% for all elements, which indicates that there is an extremely high correlation of the repeat pulp assay with the primary assay. When reviewing the Absolute Variance, i.e the maximum variance from the sample average, the range is extremely small at 1.97-6.0% which indicates an extremely good repeatability for the pulps presented to the laboratories prior to assaying. Reviewing the split of pulp repeats being higher or lower in grade on average, the total count indicates that there is an equal chance of any pulp duplicate being higher or lower than the original assay.

The author confirms that the pulp repeatability was excellent and supports the validity of the primary pulps to be assayed for use in estimation purposes for all elements.


40

Pulp Rejects Analyzed by Umpire Laboratory

Two laboratories have been used since the inception of the laterite Ni exploration at ANLP, and during the drilling programs check pulps have been forwarded to the alternate laboratory to confirm assay reliability. There are minor issues for some element analyses due to the varying assay methodologies (McPhar use AAS process and Intertek use an XRF), but this is predominantly within the minor elements and not the Ni assay.

Table 10: Variance of Pulp Duplicate and Interlab Assays

Interlab Pulp Duplicates Comparative Statistics


1.97%

-0.9%

1.2%

2.7%

2.4%

0.0%


5.04%

10.4%

6.7%

20.5%

17.8%

1.0%

McPhar = Intertek

9

60

0

7

1

1

McPhar < Intertek

117

127

135

140

129

74 McPhar > Intertek

193

132

184

172

189

81

The results presented in Table 10 range from -0.9% to 2.7% for all elements, which indicates that there is an extremely high correlation of the interlab repeat pulp assay with the primary assay, and in fact are very similar to the range of variance encountered within the single lab pulp repeats (Table 9). When reviewing the Absolute Variance, i.e the maximum variance from the sample average, the range is larger at 1.0-20.5% which indicates that though their is good repeatability for the pulps, the differing methodologies do provide some contrast in the minor elements (Al and Mg especially). Reviewing the split of pulp interlab repeats being higher or lower in grade on average, the total count indicates that there is an equal chance of any pulp duplicate being higher or lower than the original assay.

The author confirms that the pulp interlab repeatability was excellent and further supports the validity of the primary pulps to be assayed for use in estimation purposes for all elements.

8.6 Summary

In the authors opinion the sampling protocols, procedures and methods performed by MRL, and their implementation are of acceptable standards. Assays performed at the McPhar and Intertek in Metro Manila, are also of acceptable standards. Variations encountered by the McPhar and Intertek QA/QC program on the Agata samples were all within acceptable limits.


41

9.0 Data Verification

The author has visited site twice in the past 6 months and in each occasion has reviewed protocols and processes set in place at the Mindoro base camp in Agata. The datasets provided by Mindoro were checked and verified by comparing a random portion against original field sheets and official Certificates of Analytical Results. Selected core trays were visually inspected against the logs. In addition, the core photos were viewed and compared with the cross sections showing laterite horizons generated by MRL. The lithology was checked in the field and in the drill cores. The digital file was checked for logical errors or data entry errors. There were a few but very minor errors found.

Previously Dallas Cox who has compiled the 3 previous resource reports also completed a series of random checks made in the field, to corroborate the acceptable quality of the data. As a further test, he collected twelve field duplicate samples and sent them to the same laboratory where they were originally assayed. Five samples come from the limonite horizon, six are from the saprolite and one from the saprolitic rock horizon. Table 11 and Figure 11 show the results and the correlation vis-à-vis original MRL assay values.

Table 11: Results of Independent Check on Drill Core Assays

HOLE ID FROM TO RUN MRL Ni %

DMC Ni %

MRL Co %

DMC Co %

MRL Fe %

DMC Fe %

MRL Al %

DMC Al %

MRL Mg %

DMC Mg %

AGL 2008-281 1.00 2.00 1.00 1.46 1.43 0.09 0.09 38.94 39.75 2.45 2.64 1.07 1.13

AGL 2008-355 2.00 3.00 1.00 1.02 0.91 0.07 0.07 30.47 31.55 2.57 2.61 2.28 1.44

AGL 2008-175 2.60 3.45 0.85 1.59 1.58 0.05 0.05 23.32 23.60 0.74 0.66 10.51 10.32

AGL 2008-194 6.00 7.25 1.25 0.92 0.95 0.03 0.03 15.22 15.89 0.71 0.69 12.93 12.64

AGL 2008-174 3.40 4.20 0.80 1.31 1.35 0.03 0.03 14.45 15.25 0.46 0.45 15.57 15.63

AGL 2008-297 8.00 9.00 1.00 1.27 1.25 0.14 0.13 52.05 50.62 3.88 3.36 0.36 0.42

AGL 2008-299 1.00 2.00 1.00 1.20 1.32 0.14 0.13 47.57 44.50 1.82 1.69 2.75 3.89

AGL 2008-355 2.00 3.00 1.00 0.87 0.92 0.03 0.03 14.24 14.64 0.52 0.55 15.89 15.65

AGL 2007-17 27.00 28.00 1.00 1.33 1.31 0.02 0.02 6.38 8.14 0.11 0.21 15.02 17.24

AGL 2008-135 5.55 6.45 0.90 1.03 1.12 0.12 0.11 50.10 50.73 2.46 2.12 0.71 0.77

AGL 2008-74A 17.40 18.40 1.00 0.46 0.51 0.01 0.01 5.40 6.07 0.15 0.16 14.66 15.43

AGL 2008-14A 13.55 14.85 1.30 0.80 0.97 0.02 0.02 8.48 10.20 0.16 0.19 14.53 15.15

* DMC - Dallas M. Cox


42

Figure 11: Comparison of Independent Checks and MRL Assays

The graphs show good correlation between the MRL assays and that of Dallas Cox’s samples. This is attested by the values of the coefficient of determination R2, which range from 0.947 for nickel to 0.996 for iron.

The author has verified all aspects drill hole collar locations, sampling and assay procedures, examined mineralized material in the field and in drill core, as well as the geological and assay databases during two site visits in the Agata Project and meetings with MRL staff and Dallas Cox a previous independent analyst of the Agata north Resource. With these factors, as well as the evaluation of the results of assay rechecking, the writer is satisfied that all data utilised in the resource estimate can be relied upon.

10.0 Bulk Density Determinations

MRL have completed a significant number of bulk density tests so as to provide data for estimating the tonnages of each specific mineralized zone within the ore body. Samples were predominantly taken from test pits prepared for the taking of density samples. A total of 30 samples from 15 test pits were used for the ferruginous laterite horizon; 37 samples from 19 pits for limonite; and 17 pit samples from 6 pits for saprolite. In addition 19 core samples were tested from the saprolite zone. All primary data used for these determinations are located in Appendix 4.

For BD measurements done on site, large samples ranging in volume from 0.005 m3 to 0.08 m3 were collected from twenty test pits. The locations of these test pits are distributed around the drilling area (Figure 12). The bulk samples were measured for volume, wet weight, and dry weight. The description of the methodology is detailed in the ANLP QA/QC Procedures (Appendix 2)

The BD and moisture content were computed with the following formulas.


43

Weight (kg) Bulk Density = _______________ ÷ 1000 (kg/ton) Volume (m3)

Weight wet – Weight dry % Moisture Content = __________________ x 100

Weight wet

For the drill cores, relatively solid/less compressed portions of 10cm-20cm lengths were selected from drill holes that are spatially distributed and coated in paraffin wax to preserve the moisture. These were then dispatched to McPhar Laboratories wherein the samples were measured using the water displacement method. It is standard practice for McPhar to check the wax coating and perform re-waxing if needed.

Table 12: Summary of Bulk Density Measurements

HORIZON Wet

Density Dry

Density

Moisture Content

%

No. of Samples

FERRUGINOUS LATERITE 1.72 1.20 30.49 30

LIMONITE 1.81 1.24 31.74 37

SAPROLITE (Pit Samples) 1.98 1.46 26.11 17

SAPROLITE (Core Samples) 1.82 1.45 20.60 19

Table 12 shows the summary results of these measurements, and the dry density values used in the resultant block model were 1.24 dt/m3 for Limonite and 1.45 dt/m3 for Saprolite. A dry density of 1.8 dt/m3 for bedrock has been applied in the model, but there is no mineralised ore within this defined region and as such is simply a differential figure to aid in planning and design.


44

Figure 12: Agata North Bulk Density Test Pit Location Map

11.0 Resource Estimate

The resource Estimate calculations were completed by Mike Job, Principal Consultant for Quantitative Group based out of Fremantle, West Australia. All data was checked and forwarded by the author, and all modelling methodologies were discussed prior to commencement of developing the resource.

11.1 Geometric Interpretation

The sample dataset provided was loaded into Datamine, along with the new topography points. These topography points were used to construct a wireframe surface. Quantitative Group (QG) performed only cursory validation of the dataset, with no serious issues arising. There is a total of 593 drillholes in the dataset, with 185 of these being drilled between April and July 2010. All of the holes are vertical and relatively shallow, with the deepest hole ending at 46.6m depth. The UTM coordinates (rather than the local grid) have been used.

The Limonite / Saprolite contact point was identified in each drillhole by using the Mg assay data. There is an abrupt change in the level of Mg in Limonite (usually less than 1% Mg) to Saprolite (generally well over 10% Mg, although sometimes down to about 5% Mg), and there is also an abrupt drop of Fe in Limonite (~40% to 50%) to Saprolite (less than 10%). The Saprolite / Bedrock contact point in each drillhole was identified by using the Ni assay data (bedrock generally less than 0.40%) and the geological logging. The geological logging provided in the dataset matched these grade-determined boundaries extremely closely.


45

These points were triangulated to produce 3D surfaces, and these were visualised against drillholes in cross section. Additional control points were inserted at interpreted locations in-between drillholes in order maintain geological consistency and to account for drillholes finishing before hitting bedrock. The triangulations were then updated to incorporate the new control points.

The topography surface was then used to cut the base of Limonite and base of Saprolite triangulations (see Figure 13) and these three surfaces were used to generate a 3D block model. A parent cell size of 20m x 20m x 1m was used with 10m x 10m x 1m sub-blocking (see Table 13 and Figure 14). The model origin was chosen so that the drillholes would mostly be located in the centre of a parent block.

Table 13: Block Model Properties

Easting (m) Northing (m) RL (m) Origin 775,625 1,025,225 0 Parent block size 20 20 1 Sub-block size 10 10 1 Extent 778,225 1,029,025 400

Figure 13: Bedrock, Saprolite, and Topography triangulations in cross section with drillholes

Base of Saprolite surface Base of Limonite surface

Topography surface


46

Figure 14: Block model, coloured by laterite horizon

1m composites were generated from the sample database, as 46% of the raw sample length was on 1m intervals, 29% were <1m and 25% were >1m. The maximum sample length was 7m, but there are less than twenty samples that have a raw length of greater than 2m. These composites and a regularised version of the block model were exported to Isatis for exploratory data analysis.

11.2 Exploratory Data Analysis

Table 14 shows the basic statistics for the Limonite, Saprolite and Bedrock domains for the six variables that were to be estimated.


47

Table 14: Basic Statistics, Agata North Deposit

DOMAIN VARIABLE Count Minimum Maximum Mean Std. Dev. Variance CV

Limonite AL_PCT 2615 0.04 10.75 3.36 1.53 2.34 0.46 CO_PCT 2796 0.01 0.71 0.11 0.07 0.00 0.62 FE_PCT 2796 6.00 56.00 45.81 6.32 39.91 0.14 MG_PCT 2615 0.01 19.84 1.02 2.15 4.60 2.10 NI_PCT 2796 0.11 2.27 0.96 0.31 0.09 0.32 SIO2_PCT 2615 0.40 61.14 5.33 6.91 47.77 1.30

Saprolite AL_PCT 5046 0.01 11.82 0.43 0.51 0.26 1.19 CO_PCT 5382 0.01 0.27 0.03 0.02 0.00 0.80 FE_PCT 5382 4.00 55.00 10.52 5.17 26.67 0.49 MG_PCT 5047 0.08 27.83 17.52 4.15 17.20 0.24 NI_PCT 5382 0.21 3.26 1.00 0.47 0.22 0.46

SIO2_PCT 5047 2.04 76.73 40.69 5.41 29.27 0.13

Bedrock AL_PCT 2534 0.01 10.13 0.41 1.02 1.04 2.50 CO_PCT 2679 0.01 0.05 0.01 0.00 0.00 0.33 FE_PCT 2682 3.00 25.00 5.91 1.17 1.37 0.20 MG_PCT 2535 0.85 27.99 21.30 3.23 10.42 0.15 NI_PCT 2682 0.01 0.94 0.27 0.07 0.01 0.25 SIO2_PCT 2535 18.49 67.09 41.93 3.16 10.00 0.08

The six variables that were estimated are heterotopically sampled; more data is available for Ni, Co and Fe than for Al, Mg and SiO2 (approximately 6 to 7% fewer composite values are available for the latter). Histograms for the Limonite and Saprolite estimation domains are available in Appendix 5.

QG analysed grades across the Limonite / Saprolite boundary using contact analysis. The technique analyses two zones at a time (one contact), calculating the distance of each sample from the interpreted contact. Samples are then ‘binned’ according to their distance either side of the contact and the average grade of each bin is calculated for each variable of interest. The mean grades across the contact are plotted, providing a visual guide as to whether the transition is gradational or sharp.

Plots for the contacts and variables of interest are contained in Appendix 5. In the plots, each sample is represented by a red point, and the mean grade by distance class across the contact is represented by the black line series; the interpreted contact itself is represented by the vertical black line (at zero distance).

Ni tends to increase in grade with depth through the Limonite and decrease in grade with depth through the Saprolite; the maximum mean Ni grade is found around the Limonite / Saprolite contact. The Limonite to Saprolite contact is marked by a sharp and substantial decrease in Fe and increases in Mg and SiO2. Al decreases in grade with depth steadily through the Limonite, flattening out in the Saprolite. This analysis supports the use of a hard estimation boundary between Limonite and Saprolite.

Note that the variables were to be estimated into the Limonite and Saprolite domains only – default grades were assigned to the Bedrock domain.


48

11.3 Variography and Estimation

Experimental variograms were generated for the six variables in the two estimation domains. No anisotropy in the horizontal plane was identified, so omnidirectional variograms within the horizontal plane were generated with an additional downhole direction to help model short range structure. A lag value of 50m in the horizontal plane was used with 1m in the vertical direction. Using a slicing height of 2m in the horizontal plane provided an improvement in variogram structure. Experimental variograms and their associated models are contained in Appendix 5 (Figure 10 to Figure 15, and the models are tabulated in Table 15).

Table 15: Limonite and Saprolite Variogram Models

Nugget Nugget SillVariable (C0) (as %) Major Semi Minor Sill (as %) StructureAL_PCT 0.5 21.4% 70 70 5 1.32 56.4% 1

600 600 7 0.52 22.2% 2CO_PCT 0.0007 16.0% 7.5 7.5 3.5 0.002 45.8% 1

80 80 4 0.00167 38.2% 2FE_PCT 10 23.8% 30 30 4 6.5 16.3% 1

325 325 10 23.9 59.9% 2MG_PCT 1 21.8% 15 15 7 0.58 12.7% 1

300 300 12 3 65.5% 2NI_PCT 0.01 10.8% 7.5 7.5 4 0.018 19.4% 1

110 110 5 0.065 69.9% 2SIO2_PCT 8 16.8% 11 11 3 10.5 22.1% 1

225 225 7 29 61.1% 2

Range

Limonite Variogram Models

Nugget Nugget SillVariable (C0) (as %) Major Semi Minor Sill (as %) StructureAL_PCT 0.02 6.7% 13 13 10 0.047 15.8% 1

300 300 12 0.23 77.4% 2CO_PCT 0.00008 23.3% 10 10 7 0.000085 24.7% 1

60 60 11 0.000179 52.0% 2FE_PCT 5 20.1% 25 25 9 4.5 18.1% 1

115 115 9 15.4 61.8% 2MG_PCT 2.1 12.1% 7.5 7.5 7 4.1 23.7% 1

100 100 10 11.1 64.2% 2NI_PCT 0.015 6.0% 8 8 8 0.033 13.3% 1

95 95 9 0.2 80.6% 2SIO2_PCT 5 19.1% 10 10 5 5 19.1% 1

125 125 14 16.2 61.8% 2

Saprolite Variogram ModelsRange

Grade variables tend to have relatively low nugget variance, typically around 10%, with a maximum range of continuity typically around 100m. This behaviour is relatively consistent between all of the variables and has been modelled as such in order to maintain relativity between variables during independent estimation (therefore maintaining reasonable total assay back calculation). Spatial behaviour of grade does not appear to change dramatically between Limonite and Saprolite.


49

Downhole drift is evident in many of the variables; this was accounted for in estimation by using Ordinary Kriging with a restricted search in the vertical direction. Ordinary Kriging was carried out independently for each variable in both of the estimation domains using the neighbourhood parameters presented in Table 5 and a block discretisation of 5x5x1.

The search ellipses were oriented according to the local dip and dip direction using the Datamine dynamic search feature ,which allows the search neighbourhood ellipse dip and dip direction to be defined separately for each block (in this instance, the variogram was also rotated to align with the search, but this does not always need to occur). This has the advantage of having a locally-varying orientation over a domain, where an ‘average’ dip and dip direction would not necessarily honour the local grade geometry.

The local dips and dip directions were calculated from the orientation of the limonite/saprolite boundary wireframe triangles, approximating the dip of each of the mineralised domains. Note that tolerances can be set during this process, so that ‘erroneous’ points will not be generated, such as vertical dips at the edges of the wireframe.

These points were then used to produce the dip and dip direction for each parent block - essentially the dip and dip direction are treated as variables and estimated into the block model using special parameters (to account for dip between 90° and -90°, and dip direction between 0° and 360°).

Then, during estimation of the grade variables, the search ellipse and variogram orientation is rotated appropriately for each parent block.

Three estimation runs were carried out (the same search was used for all variables in both domains), the second run with less restrictive parameters, attempting to estimate blocks that were not estimated in the first. Any blocks not estimated in the first two runs were estimated using a very large search. Approximately 71% of the model volume was estimated in run 1, and 28% in run 2, so only 1% of the model was estimated using run 3. The run number was recorded during estimation along with various geostatistical metrics such as the slope of regression.

Table 16: Estimation neighbourhood parameters, Agata North Resource

Estimation run number

X direction (m)

Y direction (m) Z direction (m) Minimum number of samples

Maximum number of samples

Run 1 150 150 5 10 40 Run 2 300 300 10 4 40 Run 3 600 600 20 4 20

To validate the estimate, swath plots were generated. These plots represent E-W and N-S ‘slices’ (at 100m spacings) through the deposit, and the mean grade of the block model and the composites within each of these slices was reported and compared for all of the variables in Limonite and Saprolite. An example is illustrated in Figure 3 which compares composites and blocks for Ni in Saprolite. As expected, in all cases the block model follows the trends of the composites, with less variability.


50

0

100

200

300

400

500

600

0

0.2

0.4

0.6

0.8

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7760

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7778

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7779

25

Num

bero

fSa

mpl

es

Ni %

Easting

Ni by Easting, Saprolite

No. Samples Model Sample

Figure 15: Comparison of composites against the block model for Ni in Saprolite

A limited visual validation of the block model grades against drillhole grades was carried out with no anomalies identified. The estimated block means (above a zero cut-off) match relatively closely to the composite means (Table 17).

Table 17: Composites vs blocks comparison

Domain Variable Composites Blocks Limonite Ni 0.96 0.94

Co 0.11 0.11 Fe 45.8 45.5

Saprolite Ni 1.00 0.96 Co 0.03 0.03 Fe 10.5 10.9

Dry bulk density was flagged into the model (Limonite 1.24, Saprolite 1.45, Bedrock 1.8). The default values applied to the Bedrock are 0.25% Ni, 0.01% Co, 6% Fe, 0.5% Al, 22% Mg and 42% SiO2.

11.4 Resource classification

The resource classification approach reflects confidence in both geometric interpretation and confidence in geostatistical grade estimates, and also classifies the resource in a spatially coherent manner, avoiding small patches of different categories. The vast majority of the deposit is drilled on 50m x 50m or 100m x 100m grids, which is enough to support a category of Indicated. The only areas of Inferred are around the steep-sided creek systems, where the drilling is on a broader pattern and


51

the laterite horizons thin out. The only Measured part of the resource is where the drilling has been on 25m x 25m centres. Figure 4 shows the block model coloured by resource classification.

Figure 16: Resource classification, Agata North Deposit.

The Mineral Resource Estimate figures above a 0.5% Ni cut-off for Limonite and above a 0.8% Ni cut-off for Saprolite are presented in Table 18.


52

Table 18: Agata North Mineral Resource Estimate as at 2nd September 2010.

Classification Horizon kTonnes Ni Co Fe Al Mg SiO2

Measured Limonite 247 1.01 0.12 48 3 1 5 Saprolite 535 1.15 0.03 11 0 18 42

Sub-Total 782 1.10 0.06 23 1 13 30

Indicated Limonite 9,963 0.94 0.11 46 3 1 6 Saprolite 21,847 1.09 0.03 11 1 17 40

Sub-Total 31,811 1.04 0.05 22 1 12 29

Measured + Limonite 10,210 0.94 0.11 46 3 1 6 Indicated Saprolite 22,382 1.09 0.03 11 1 17 40

Total 32,592 1.04 0.05 22 1 12 29

Inferred Limonite 260 1.00 0.11 45 3 2 10 Saprolite 1,421 1.05 0.03 12 1 17 40

Total 1,681 1.04 0.04 17 1 15 36

In comparison to the August 2010 resource there is an increase of 2.8Mt in the Measured and Indicated categories. The Ni grade increases slightly compared to the previous estimate (from 1.04% to 1.03%), so contained Ni metal for the Measured and Indicated increases by 10.9% (from 307kt Ni to 340kt Ni). Nickel grade-tonnage curves for the Measured plus Indicated resource at cut-offs from 0.05% Ni to 1.5% Ni are shown for Laterite in 17 and for Saprolite in Figure 18.

0.0

0.2

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5

Ni%

gra

de

Thou

sand

Ton

nes

Ni% Cut-off

Grade-Tonnage Curve, Measured + IndicatedLimonite

Tonnes ('000) Ni %

Figure 17:. Grade-tonnage curve, Measured + Indicated, Limonite.


53

0.0

0.2

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5

Ni%

gra

de

Thou

sand

Ton

nes

Ni% Cut-off

Grade-Tonnage Curve, Measured + IndicatedSaprolite

Tonnes ('000) Ni %

Figure 18:. Grade-tonnage curve, Measured + Indicated, Saprolite.

12.0 Conclusions

The presence of large areas of an exposed Ultramafic along the Western Range, an upthrust ridge east of the Philippine Fault, has provided a location for lateritic weathering of the ultramafic. The area known as Agata North has been enriched within the laterite profile in Ni and Co.

The ANLP has two distinct geomorphic features that have influenced laterite formation and consequent nickel enrichment. The Eastern part of the delineated body has a moderate relief whose bedrocks are exposed in ridge tops and in the nearby creeks. The Western laterite occurs on a low relief terrain and with no exposures of bedrock on its hillcrests. In the Western area, the laterite is well developed and contains thick and highly mineralized limonite/saprolite. The Eastern Laterite Zones contain some boulders within the laterite profile. Its limonite zone is usually thinner.

The laterite profile in the ANLP consists of the ferruginous laterite, limonite and saprolite zones or horizons, and the saprolitic rock, from surface to increasing depth. The limonite zone is characteristically iron oxide-rich, where the predominant minerals are hematite, goethite and clays, and with moderate nickel content (over 1%), which overlies the saprolite zone that has much less oxidised, is magnesium -rich, and has a slightly higher nickel content than the limonite horizon, with grades in both zones generally at their highest near or adjacent to the contact zone.

This report is based on the data that were produced and compiled by MRL. Data verification performed by the author found no discrepancies in the sampling and analyses that biased the data set. Hence the database is considered adequate to meet industry standards to estimate mineral resources.


54

The resource was calculated by Quantitative Group using Ordinary Kriging as the estimation method. Both the limonite zone and the saprolite zones were estimated independently as the form of mineralisation in both zones were unique and could not be used for comparative statistics. The measured and indicated resource estimated from this report is as below:

29,790,000t ore @ 1.03%Ni, 0.05%Co, 23%Fe

The cut-offs applied to the resource were 0.5%Ni for Limonite and 0.8%Ni for Saprolite (as per the previous estimates completed upon the ANLP, (Cox, 2008 2009a 2009b; Gifford 2010)). The last resource calculated on the ANLP (Gifford 2010), had the following tonnage and grade:

32,592,000t ore @ 1.04%Ni, 0.05%Co, 22%Fe

Variations in grade can be explained by the application of a more constrained saprolite zone with the removal of unweathered material from the estimation zone, and variation in tonnes are explained by a slightly broader spread of high grade caused by the estimation methodology within a more constrained saprolite. With the increase in tonnage and grade there is also a tonnage increase in total Ni tonnes (from 307kt to 340kt contained Ni).

The latest completed drill program in conjunction with exploration ongoing since 2005 has ensured most of the resource within the ANLP has been tested and estimated. It is unlikely that within this project area that the resource could be expanded by more than 10-20% if any future drilling was proposed.


55

13.0 References

Abrasaldo, E.M. 1999. Exploration Report Agata Project June 1997-April 1998. MRL Gold Phils., Inc., Internal Company Report (unpubl)

Ambagan, D. 2007. Notes on Resource Estimation of Agata Nickel Laterite Project of MRL Gold Phils., Inc., Internal Report., (unpubl). January 2007.

Aurelio, M.A. and Peña R.E. 2002. Geology and Mineral Resources of the Philippines, Volume 1: Geology. (eds) Aurelio, M.A. and Peña, R.E., Department of Environment and Natural Resources, Mines and Geosciences Bureau, Philippines.

Bailey, D.G. 2003. Surigao Property Group, Northeastern Mindanao, Geology and Exploration Potential. Bailey Geological Consultants (Canada), Technical Report for Panoro Minerals Ltd.

Buenavista, A.G. 2008. Notes on the Geology and Mineralization in the Surigao Western Range. MRL Gold Phils., Inc. Internal Report, February 2008.

Buenavista, A.G. 2008. Geochemistry of the Agata Nickeliferrous Laterite Deposit. MRL Gold Phils., Inc. Internal Report, May 2008.

Cox, D.M. 2008. Independent Geologic Report on the Nickel Laterite Resource at Agata North Laterite Project Area, Agata Project, Agusan del Norte Province, Northern Mindanao, Phillipines. MRL Gold Phils., Inc., September 2008, rev. Oct 2008.

Cox, D.M. 2009a. 43-101 Technical Report on the Mineral Resource Estimate for the Agata North Nickel Laterite Project of Mindoro Resources Ltd., January 22, 2009.

Cox, D.M. 2009b. 43-101 Technical Report on the Mineral Resource Estimate for the Agata North Nickel Laterite Project of Mindoro Resources Ltd., December 22, 2009.

Climie, J.A., et,al. 2000. Accomplishment Report for the Period: June to December 1999. MRL Gold Phils., Inc., Internal Company Report (unpubl). January 2000.

Climie, J.A., et,al. 2005. Interim Exploration Program Report, Surigao Joint Venture Projects: March 1 to June 20, 2005. MRL Gold Phils., Inc., Internal Company Report (unpubl). July 2005.

De Luna, R., et.al., 2004. Report on the Reconnaissance Geologic Survey of the Nickeliferrous Laterite Deposits at Barangay Tapian, Mainit, Surigao del Norte and Barangay E. Morgado, Santiago, Agusan del Norte. Taganito Mining Corp. Report, July 2004.

Elliott, P.J. 2005. Report on IP and Magnetic Surveys Over the: Agata Prospect, San Francisco Project, Philippines. MRL Gold Phils., Inc. and Panoro Minerals Ltd,, Company Report, June 2005

Fang, E.F.E and C.A. Matilac. 2006. Evaluation of Preliminary Exploration on Agata Nickel Laterite Prospect of MRL Gold Phils., Inc., QNPH Report, June 2006


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Fetiza, I.A. Jr. 1999. Exploration Report: Tapian-San Francisco Project, May 1997 - May 1998. MRL Gold Philippines Inc. Internal Company Report (unpubl.).

Gifford M.G. 2010. 43-101 Independent Report on the Nickel Laterite Resource - Agata North, Philippines. August 20, 2009.

Marshall, N.J. 1997. Geological Report on the Agata, Mat-I, Nabago and Tapian Gold Prospects, Northern Mindanao, Republic of the Philippines. Marshall Geoscience Services Pty. Ltd., Australia.

Mitchell, A.H.G. and Leach, T.M. 1991. Epithermal gold in the Philippines: Island arc metallogenesis, geothermal systems and geology. Academic Press Geology Series.

Rangin, C. 1991. The Philippine Mobile Belt: A complex plate boundary. Journal of Southeast Asian Earth Sciences, 6 (3/4), pp. 209-220.

Rohrlach, B.D. 2005. Independent Geological Report on the Surigao Property Group, Northern Mindanao, Philippines. MRL Gold Phils., Inc. and Panoro Minerals Ltd., Company Report, April 2005

Sajona, F.G., et.al., 1994. Magmatic response to abrupt changes in geodynamic settings: Pliocene-Quaternary calc-alkaline and Nb-enriched lavas from Mindanao (Philippines). Tectonophysics, 237(1-2), pp. 47-72.

Sillitoe, R.H. 1988. Geotectonic setting of western Pacific gold deposits. In: M.J. Bartholomew. D.W. Hyndman, D.W. Mogk, and R. Mason, (eds), 8th International Conference on Basement Tectonics, 8, pp. 665-678. Kluwer Publishers, Butte, Montana.

Tagura, F. et. al. 2006. Comprehensive Report, MPSA-134-99-XIII, Agata Tenement Blocks. MRL Gold Phils., Inc. Internal Company Report (unpubl.), 2006

Tagura, F. et. al. 2006. Report on the Preliminary Drill Evaluation on Canaga (MPSA-33-95-X), Malimono, Surigao del Norte. MRL Gold Phils., Inc. Internal Company Report (unpubl.), September 2006

Tagura, F. et. al. 2007. Report on Agata Drilling Program, Agusan del Norte, Philippines (Phase 1 Year 2 Expenditure Period 2005-2006), MRL Gold Phils., Inc. Internal Company Report (unpubl.), January 2007

UNDP. 1984. Geology of Northern Agusan, Mindanao, United Nations Technical Report No. 2, DP/UN/PHI-79-004/6, New York.

UNDP. 1987. Geology and Gold Mineralization of Surigao del Norte, United Nations Technical Report No. 4, DP/UN/PHI-85-001/4, New York.

Zurkic, N. 2009. AGL-Vario_Report. Zurkic Mining Consultants Pty. Ltd., Internal Report (unpubl)


57

14.0 Date and Signature

CERTIFICATE OF QUALIFICATION

I, Mark G. Gifford of 636 Bramley River Road, Margaret River, West Australia hereby certify that:

1. I am a Professional Geologist employed as a private consultant.

2. I am responsible for the preparation of the Technical Report titled “Independent Report on the Nickel Laterite Resource – Agata North, Philippines.” And dated September 3, 2010.

3. I am a member in good standing of the Australian Institute of Mining and Metallurgy with membership number 108672

4. I am a graduate of the University of Waikato, New Zealand with a Masters Degree (1st Class Honours) in Earth Sciences.

5. I have practiced my profession for 22 years, and have worked specifically on lateritic Nickel deposits throughout the world for 5 years in a geological managerial position. I have been operating as an Independent Consulting Geologist since 2005.

6. I certify that by reason of my education, affiliation with a professional association (as defined by NI 43-101), and past relevant work experience, I fulfil the requirements to be a “qualified person” for the purposes of NI 43-101. I am an independent qualified person as defined by NI 43-101 and by the companion policy 43-101CP to National Instrument 43-101.

7. This technical report is based on my review of the available published data, company reports and data, and personal visits to the property. I have visited the property twice in 2010 and have completed inspections of all aspects of the exploration process, as well as consulting with MRL staff at all levels during the development of the report. My visits were in March and June 2010.

8. I have read NI 43-101 and form 101F1. The technical report has been prepared in compliance with both of these documents.

9. I, Mark Gifford, do not expect to receive any interest (direct, indirect or contingent), in the properties described herein, nor in the securities of Mindoro Resources Limited or any of their affiliates. I am independent of the issuer under all criteria of Section 1.5 of NI 43-101.

10. I am not aware of any material fact or material change with respect to the subject matter of this Technical Report which is not reflected in this report. I am not aware of any possible omissions that would deem this report misleading.

11. I consent to the filing of the Technical Report with any stock exchange and other regulatory authorities, and any further publication by them for regulatory purposes. I consent to the inclusion of parts of the Technical Report as electronic publication on the companies’ websites that are accessible to the public.


58

Signed in Melbourne, Australia. Dated 3rd of September, 2010.

__"Mark G. Gifford"_______________________________

Signature of Qualified Person

Mark G. Gifford MSc (Hons), MAusIMM

________________________________

Name of Qualified Person

Appendix 1

ANLP Cross Sections

1

Appendix 2

ANLP QA/QC Procedures

2

MNDORO RESOURCES LIMITED

[MRL GOLD PHILS., INC.]

AGATA NICKEL LATERITE PROJECT

QUALITY ASSURANCE AND QUALITY CONTROL PROCEDURES

MRL Gold Phils., Inc. Agata Project Exploration Staff

3

Table of Contents 1. INTRODUCTION ......................................................................................................................................... 4 2. GEOLOGIC MAPPING ................................................................................................................................ 5 3. TRENCHING ................................................................................................................................................ 5 4. SURVEYING ................................................................................................................................................ 6

4.1 Grid Lines Survey .................................................................................................................................... 6 4.2 Topographic Surveying ............................................................................................................................ 6

5. DRILLING ..................................................................................................................................................... 7 6. CORE SECURITY ........................................................................................................................................ 9 7. CORE LOGGING ........................................................................................................................................ 10

7.1 Logging Codes ....................................................................................................................................... 10 7.2 Weathering Scale ................................................................................................................................... 10 7.3 Boulder Size ........................................................................................................................................... 10 7.4 Color Code ............................................................................................................................................. 11

8. CORE SAMPLING ..................................................................................................................................... 11 Geologist Maya Arguelles doing core logging at the drill site. ....................................................................... 11 9. TRANSPORT OF SAMPLES ..................................................................................................................... 13 10. ASSAYING ............................................................................................................................................... 14 11. ASSAY DATA QUALITY ANALYSIS ................................................................................................... 14

11.1 Duplicate Samples ........................................................................................................................... 14 11.2 Standard Samples ............................................................................................................................. 15 11.3 Check Samples ................................................................................................................................. 15

12. Bulk Density and Moisture Content Determination................................................................................... 15 13. Documentation ........................................................................................................................................... 17 14. Data Management ...................................................................................................................................... 19

4

MRL fly camp and core house/storage and drillers camp proximal to the drilling area

1. INTRODUCTION

MRL as any other exploration company ensures that sampling procedures and sample quality is up to standard. It is not only a “must” but also guarantees that the sanctity of the samples is maintained all-throughout from its collection to its transport into the laboratory for analysis.

As SOP of the company, a site geologist or mining engineer is assigned on the drill site to make sure that QA/QC procedures and protocol is consistently followed. The QA/QC measures being implemented in Agata Nickel-Iron Laterite Project were adapted from the QC/QA practiced from other MRL Projects and mostly from BHP QC/QA protocol that was used during BHP preliminary drilling evaluation study of Agata Laterite Prospect conducted on January – April, 2006.

This paper document details protocols being implemented. The project area straddles over Bgy, Lawigan, Tubay, and Bgy. E. Morgado, Santiago in the province of Agusan Del Norte. The field office

and main camp is located at Barangay E. Morgado.

Left: MRL field camp and core house

Below: A panoramic view of the nickel-iron laterite prospect area

5

2. GEOLOGIC MAPPING

Geologic map is essential and foremost in any geological studies. As such geologic mapping is done by geologists. There was previous mapping conducted in the area. However, detailed mapping has to continue to progressively updating the geologic map on a regular basis as there are new exposures seen on the newly brushed/cut grid lines, roadcuts, creeks, trenches and test pits as the drilling program advances. The purpose of this activity is:

2.1. To identify and delineate different lithologic units in the area.

2.2. To determine the surficial characteristics and contact of the different laterite horizons as well as bedrock geology.

3. TRENCHING

Trenching activities are being undertaken at the western and southern periphery of the current drilling area. The purpose is to expose the laterite profile and determine contacts and thickness of the different laterite horizons and the bedrock.

Determining the different laterite horizons at the periphery of the deposit is useful in the correlation and projection to the surface profile at the edge of the deposit when doing cross section maps for each grid line. This is very important in ore estimation and formulation of the site development plan where mine pit limit will be based on the contoured contacts.

Trenching at L10000N/9325E showing garnierite Trench showing laterite profile Staining (green) on the saprolite zone

6

4. SURVEYING

Prior to the implementation of the proposed drilling program survey team was sent to the area to conduct the following;

4.1 Grid Lines Survey Grid lines were laid in the area using an EDM survey instrument. The grid lines were established every twenty five (25) meters interval with control stakes marked by flagging tape and aluminum plates for easy reference and location by drill site preparation team.

The proposed drill holes are located on a 50 x 50 meters interval along the established gridlines. Gridlines are controlled using the local gridlines designated as 10,000N/10,000E as baseline grid.

Grid line survey and location of proposed drill site

4.2 Topographic Surveying

Simultaneous with the laying out of the gridlines a detailed topographic survey was likewise done in the area. Control points are shot at five (5) meters interval to generate a relatively accurate topographic contour. Drill-hole collar elevation is shot before the start of the drilling activity and after the completion of the drill hole.

Reference points BLM, and other government monument established by the concerned government agency (DENR land management) in the area are likewise located on the ground and verified as to geographical coordinates and the elevation of these established monuments.

To avoid data overloading and instrument error, data collected by the EDM machine are regularly downloaded into the company computers and regularly processed by the chief GIS. Back-up files are kept in the Surigao office to avoid data losses

7

in case the computer crashes or bugs down due to virus infestation that may destroy the stored files.

Surveyor Frank Sumpo doing topographic survey

5. DRILLING

After the drill holes have been located, the site preparation team prepares the site for drilling. Drill sites are leveled manually usually by four (4) laborers, thence, a water sump is manually dug with dimensions of 1.5m x 1.5m x 1.5m for water storage and as container for the return water.

Drilling was carried out by Construction and Drilling Specialists, Inc. using five (5) man-portable or lightweight rigs during the initial resource delineation. These rigs are Toho DS-Js, YBM-01, GM-50 and twoTS-50. NW drill rods and tungsten carbide bits will be used except for very dense hard rocks where diamond bits and NQ drill rods are used. Dry blocking or drilling with no water is usually done in the limonitic soil. When penetrating into dense bedrocks, wet is employed.

In December 2007, TCD Drilling Consultancy Services was contracted to commence the infill drilling. It drilled 48 holes with an aggregate of 773.12 meters. Four man-portable drill rigs were brought in namely: 1.) TONE 1, 2) TOHO 1, 3) TOHO 2, and 4) TOHO 3. These rigs are similar to those of the previous contractor but with single tube using conventional dry drilling techniques. Due to sluggishness of the drilling, the services of TCD were terminated.

On June 18, 2008, JCP Geo-Ex Services, Inc. continued the drilling. It drilled 225 holes up to September 25, 2008 with an aggregate of 3,591.85m. JCP used four (4) rigs. These rigs are: 1.) KOKEN, 2) YBM, 3) JCP 3, and 4) JCP 11. JCP is employing similar drilling techniques as that of TCD but is accomplishing it at a substantially faster rate. JCP continued the drilling of 185 holes comprising 3,560.75m from April 7, 2010 to July 13, 2010. They used 4 rigs namely: JCP 1, JCP 2, JCP 3 and JCP 4.

8

Core checker measuring the rod stick-up to check the run.

The drilling activities are constantly monitored by the site geologist. The purpose is to avoid over-drilling and ensure that the bedrock has been penetrated at least three (3) meters as standard operating procedure. There were instances that more than two (2) meters of boulders were encountered.

It is also a standard procedure that core checkers who is under the supervision of MRL technical staff are present in every drill rig during drilling operation. This is to record drilling activities from core recovery, core run, pull-out and put-back, casing and reaming (Appendix 1 – Drilling Activity Report) and most important is to watch out if the retrieval of core from the core tube is done properly and see to it that the recovered cores are properly placed in the core box and appropriately labeled. Core blocks are placed at the bottom of each run indicating drillhole number, core run, core recovered and current bottom. Core recovery is checked after each run and recorded in the core recovery sheet (Appendix 2 – Borehole Recovery).

Before the start of the drilling program the core checkers were properly oriented and trained on the nature and routine of their job. A daily briefing before the start of their work is being done to remind them to keep the core always in good quality. The core checkers sees to it that the drill site is clean and also safe to work.

The Safety Officer as well as company environmental officers regularly inspect the drill site. The completed drill holes are immediately rehabilitated and concrete markers are installed with markings such as drillhole number, local coordinates and depth of the drill holes.

Marker showing completed drill hole

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6. CORE SECURITY

The core box is at all times covered by plywood after each retrieved core was placed in the core box to prevent any accidental spillage or contamination. Once a core box is filled up, it is sealed with a plywood board and nailed to the core box then tightly tied with rubber packing band. Since this is manually transported to the core house some 300 - 500 meters from the drill area, the core box is placed inside a sack and carried by two persons accompanied by MRL supervisor/personnel.

Core box is covered at all times as a precaution to accidental A filled core box transported to the core house spillage or contaminant.

The core storage and core house is strictly under the supervision of the site geologist. Only authorized personnel are allowed to enter the core house premise. The filled-up core boxes are stored on an elevated rack and are kept dry and shielded from rain and excessive sunlight.

Core storage area

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7. CORE LOGGING

Core logging is absolutely done by the site geologist so that he can gain intimate knowledge of the geological aspects of the deposit. Appendix 3 (Drill hole log sheet) shows the logging sheet being used.

7.1 Logging Codes Code Laterite Horizon

LF Red-brown limonite (ferruginous or overburden)

LA Yellow limonite (without Mn staining or veining)

LB Yellow limonite (with Mn staining or veining)

TM Transition Material (mixed zone of limonite and saprolite SAP Saprolite (gritty clay with <10% boulders of weathered bedrock

RSAP Rocky saprolite (with 10% -50% boulders of weathered bedrock)

SAPROCK Saprolitic rock (with 50% - 90% bedrock)

D Dunite

SD Serpentinized Dunite

SS Serpentinite

HZ Harzburgite

SHZ Serpentinized Dunite

7.2 Weathering Scale

Laterite Horizon Classification Characteristic Fresh Rock 0 Black/green/light grey, unweathered, dense and hard Saprolite 1 Black/brown, slightly weathered, discolored, still hard

2 Brown/gray 3 Pink / brown/ green 4 Pink/brown/green, friable, relatively low density with

some remnant textures 5 Brown, yellow/red, pink/green-grey, very soft, original

texture still visible Limonite 5F Yellow-red, very soft “soil like” very low density to

compact, mud-like texture

Ferricrete 6 Red-black, hard include pisolite

Combinations of the various weathering “stages” could be used i.e.; 2/3, 3/4, 2-5 or 0-3. The first number in double-digit references indicates the predominant weathering stage, but the numbers separated by a hyphen include all intermediate weathering stages.

7.3 Boulder Size The size of the boulders is also recorded to help in the analysis of rock distribution and to determine whether screening of these rocks during mining operation is necessary.

Code Description 1 < 20 cm (will be acceptable for shipping)

2 20 -50 cm (will be screened at the grizzly)

3 > 50 cm (will be left at the pit)

11

Geologist Maya Arguelles doing core logging at the drill site.

7.4 Color Code Code Color

Bl Black

Br Brown

R Red

Bu Blue

P Pink

O Orange

Y Yellow

Gn Green

Gy Grey

W White

Combination of colors or color codes could be used i.e. YO – yellow orange, RBr – red brown, etc.

Site Geologist Ramon Diaz doing the core logging

8. CORE SAMPLING

Whole core sampling is applied in most of the first 148 holes except for 17 holes wherein the cores were split for possible checking of the sampling process, performance of the laboratory and their analytical process at a later time. This is equivalent to a frequency of about 1 in every 5 holes. The purpose of the procedure is to avoid any bias that could occur during splitting and quartering of the core.

12

Left: Geologist Reggie Visperas doing core sampling; Right: Samples collected are put in plastic bags with corresponding depth. Split samples taken on drill hole AGL-2007-04 arranged according to depth.

Splitting of the above-mentioned cores was manually done. The core was laid on a canvass sheet, pounded and crushed by use of a pick, thoroughly mixed, quartered, then the split sample is taken from 2 opposite quarter portions. The other 2 quarters are combined and kept as a duplicate in a properly-sealed and labeled plastic bag and arranged in core boxes according to depth. The duplicates are stored in the core house at the Agata core storage located at E. Morgado, Santiago, Agusan Del Norte.

The next 45 holes (AGL 2008-138 to 187, inclusive) were split-sampled to ensure the availability of reference samples in the future. The cores were cut in half using a core saw. The remaining half is stored in properly-labeled core boxes. Core sampling is done as much as possible at one (1) meter interval down the hole except at laterite horizon boundaries. The sample length across the boundaries should only be in the range of 1.0 ± 0.30m to avoid excessively short and long samples.

The sampling interval is marked in the core box by means of masking tape and written on it is the sampling depth. The sample collected is placed on a plastic bag with dimension of 35cm X 25cm tied with a “magic twister” tie wire. Outside of the plastic bag is written the hole number and sample interval.

After the samples are collected it is weighed then sun-dried for about 5 hours and weighed again (Appendix 4 – Sample Preparation Sheet) before finally packing for delivery to the laboratory. In cases where there is continuous rain the samples are pan dried for 5-6 hours using the constructed drying facility or wood-fired oven. Starting with batch 2008 AGL 18, only the sun-drying was practiced. This simple process aims to roughly determine moisture content of the samples.

Sampling interval markings using flattened pvc pipe

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9. TRANSPORT OF SAMPLES

From the core house at the drilling area, the samples are manually carried down to the Agata camp for final checking and packing before delivery to the laboratory. Six to eight samples are placed in a rice sack depending on the weight that should have maximum of 12 kilos sufficient enough for one person to carry it carefully. The sample haulers are convoyed by MRL personnel.

Once at the Agata camp, the samples are checked and inspected for completeness of samples and sample tags and check any damage to the sample bags. Sample tags are provided by Mcphar. These samples are placed in a rice sack and then in a box within a wooden crate to ensure the safety of the samples during transport.

For all of the 2007 cores and batch 2008 AGL 10, the samples are delivered to Mcphar Laboratory through LBC-Butuan City or LBC-Surigao City with a transmittal receipt. The transportation of the crates containing the samples is always accompanied by designated MRL staff. The LBC personnel acknowledge the receipt that they have received the samples with corresponding receipt of the weight and payment of samples (Appendix 5 – Transmittal letter). For batches 2008 AGL 1, 3 and 6, the samples were delivered by MRL personnel to McPhar’s sample

preparation facility in General Santos City. The assaying was still done in their laboratory in Makati City.

For batches 2008 AGL 13, 16, 18 and onwards, the core samples were delivered to Intertek’s sample preparation facility in Surigao City. Once prepared, Intertek-Surigao sends the samples to their assay

laboratory in Muntinlupa City, Metro Manila. In the 2010 drilling, samples were sent directly to the Intertek lab in Manila via air cargo (Cebu Pacific Airlines).

A sample submission form to both McPhar and Intertek Assay laboratories is included in the package of samples

14

(Appendix 6 – Sample Submission Form). Only when there is a discrepancy, McPhar or Intertek will e-mail MRL, otherwise, the results of the analysis will just come in 3 weeks thereafter by e-mail and delivery of the hard copies to MRL’s Main Office.

Samples in wooden crate ready to transport

10. ASSAYING

In McPhar, each sample is analyzed for nickel (Ni), cobalt (Co), iron (Fe), magnesia (MgO), alumina (Al2O3), silica (SiO2) and some samples for phosphorous (P). The Ni, Co, Fe, MgO and Al2O3 are assayed by di ssolving a 25g cha rge with a three ac id digest us ing hydrochloric and nitric acid and reading t he results by Atomic A bsorption Spectroscopy (AAS).The SiO2 and P a re analyzed by gravimetric process.

McPhar conducts r egular rechecks on their analysis. This is done by preparing a sol ution different from the solution on the regular sample taken on the same pulp of a particular sample.

In June 2008, Mindoro changed their primary laboratory for the ANLP Drilling Program to Intertek Testing Services Philippines, Inc. as recommended by consultant F. Roger Billington. Intertek uses X-Ray Fluorescence (XRF) for nickel laterite assaying. In whole rock analysis, samples are fused using lithium metaborate and analyzed by XRF. This scheme determines total element concentrations that are then reported as oxides. The elements analyzed include Ni, Co, Fe, Al2O3, MgO, SiO2, P2O4, CaO, Cr2O3, K2O, MnO, Na2O, TiO2. The loss in ignition (LOI) is also reported.

11. ASSAY DATA QUALITY ANALYSIS

The objective of the quality control of assays is to check the precision of sample preparation, consistency of performance and accuracy of the laboratory’s analytical results. These objectives are attained through:

11.1 Duplicate Samples To ensure the repeatability or consistency of samples, a duplicate sample is taken one (1) in a batch of every twenty (20) samples or about 5% of total samples. The duplicate sample is selected subjectively to ascertain that the full range of different laterite horizons is systematically covered.

This duplicate sample is taken by crushing to smaller size fragments the sample then quartered after thoroughly mixing. One-fourth part of the prepared sample represents the field duplicate sample and the three-fourth part as regular sample. These samples are sent to the laboratory in the same batch.

This on-site procedure of taking duplicate samples was modified in 2008. With split-core sampling, one duplicate sample in every set of forty (40) is directly obtained, by t aking ha lf of the remaining core a fter s plitting. S imply put , t he field duplicate i s just t he on e-fourth o f the w hole c ore. These samples are also sent to the laboratory in the same batch as the mainstream samples. Each subset of 40 samples in a batch contains 37 mainstream cores, 1 nickel standard, and 1 field duplicate.

15

11.2 Standard Samples The samples are provided by GEOSTATS of Australia. Standard samples are sent to monitor accuracy of t he assay proc ess on a batch by ba tch basis. These st andard samples, which ha ve k nown assay values for Ni are already pulverized (pulp) weighing about 5 grams contained in 7.5cm X 10cm heavy duty plastic bags, which are tightly sealed in packs. As more standards were later needed, pulverized samples contained in 250-gram bottles were purchased. Repacking into 5-grams was done in the MRL corehouse facility. One (1) standard sample is inserted for every batch of forty five (45) samples or 2% of total samples. Recently, the frequency of i nserting standards was changed to 1 in every set of 40 samples, as discussed in Section 11.1.

11.3 Check Samples Selected pulp rejects from previously analyzed samples from Mcphar weree sent to one independent and internationally accr edited laboratory ( Intertek of Jakarta, Indonesia). This i s t o establish reproducibility of ana lysis and determine the presence or abs ence of b ias between laboratories. Two percent (2) or about one in every 50 samples will be sent at a regular basis to have a constant check on Mcphar analysis. Samples are taken on all of the different laterite horizons.

An additional check sampling procedure was introduced in 2008. Sample intervals for future pulp rejects were randomly selected, approximately one in every 40 samples and were pre-numbered. As agreed in the sample preparation protocol, splits of all pulps are prepared by Intertek in its Surigao facility. MRL then collects all of these split pulps and discreetly inserts pre-selected ones into their pre-assigned numbers before the whole batch is sent to Intertek laboratory in Manila. These pulp rejects are therefore analyzed in the same batch as its source. To date, 35 pulp rejects (3.09 %) were inserted out of 1,133 samples analyzed in Intertek.

12. Bulk Density and Moisture Content Determination

The bulk density and moisture content is essential in ore reserves estimation. There are several alternatives of measuring density, ranging from laboratory test on small scale sampling and estimation based on bulk sampling.

Two methodologies are to be undertaken by Mindoro for the determination of Bulk Density (BD). For the ferruginous laterite and limonite horizons, bulk samples are collected from test pits and measured on site. The same procedure will be done for the saprolite zone but to be supplemented with another method, i.e., the collection and measurement of drill core samples.

The test pits are designed with an optimal dimension of 0.9m x 1.4m with the wider section oriented in the north-south direction. Old test pits, on the other hand, have dimensions of 0.7m x 1.2m. The narrower side is extended by0.5m extension to expose a fresh wall for the sampling.

16

For BD measurements to be done on site, large samples ranging in volume from 0.005 m3 to 0.08 m3 will be collected from test pits. The locations of these test pits must be distributed around the drilling area.

To secure representative samples for the BD tests, small pits or “boxes” and channels will be excavated or chiseled into test pit walls. Pre-fabricated plywood with square holes measuring 0.40m x 0.40m and 0.20m x 0.20m are used as guides in excavating and chiseling of the pit faces to ensure volume accuracy. The plywood guides are then nailed to the pit walls to be sampled. Once nailed, chiseling of the area outlined by the plywood guide begins from the center of the “boxes” chipping towards the “boxes’” boundaries. To ensure consistency of the volume excavated, knife putties are used to smoothen the edges of the “box”. Level bars and square boxes are regularly utilized to achieve a more or less perfect sampling dimension desired. The chipped samples chiseled from the box falls freely onto a clean canvass placed at the bottom of the pit.

There were instances that the final dimension of the excavation in the pit walls became irregular due to the presence of boulders or rocks that were hard to chisel. In such cases, the final dimension was determined by carefully measuring the height, width and breadth. These were done by MRL geologists themselves in conjunction with their test pit logging.

The bulk samples will be measured for volume, wet weight, and dry weight. The samples are to be contained in plastic bags and weighed using a 16-kg capacity, Korean made (“Choongang” brand), “Ohaus”-type single beam field weighing balances equipped with a 5-gram graduation beam. The weighing scales are placed in tables exclusively used for this purpose. The weighing instruments are cleaned and calibrated regularly. The weight of the plastic bags are to be subtracted from the weighed samples to arrive at the actual weight of the samples.

After determining the wet weight, the samples will be spread evenly in a canvass and sun-dried for initial drying. Thence, these samples will undergo heating in constructed fire wood/charcoal-fired heating facilities for four to six hours. The samples should be regularly “stirred” to ensure even drying. The dried samples are cooled naturally for about 20 minutes, after which they are collected onto plastic bags for final weighing.

The BD and moisture content are computed with the following formulas.

Weight (kg) Bulk Density = _______________ ÷ 1000 (kg/ton) Volume (m3)

Weight wet – Weight dry

17

% Moisture Content = __________________ x 100 Weight wet

For the drill cores, relatively unbroken portions of 10cm-20cm lengths are selected from drill holes that are spatially well-distributed. The samples are to be coated in paraffin wax to preserve the moisture. These are then dispatched to McPhar Laboratories wherein the samples will be measured using the water displacement method. It is standard practice for Mcphar to check the wax coating and perform re-waxing if needed.

At Mcphar, the volume of the core is measured by displacement in a graduated cylinder or by water displacement. The wax is then removed, and the core is weighed (wet). Thence, the sample is oven-dried and then re-weighed (dry) to be able to calculated the free moisture content.

13. Documentation

Before the cores are logged the undisturbed core are photographed first to show visual presentation of the core samples. Three (3) core boxes at a time are placed on the core stand. The header of this core stand shows the drill hole number and core box numbers.

Core boxes and camera stand

18

Photo of core on AGL-420

Significant intercepts and other relevant activities deemed necessary for documentation are also photographed.

Garnierite (green) as fracture fill and replacement of Garnierite on fractures of serpentinized harzburgite Serpentinite in highly oxidized and brecciated silicified harzburgite harzburgite

Garnierite partially replacing serpentinite in brecciated, Brecciated harzburgite with vuggy quartz veinlets

Slightly silicified harzburgite.

19

14. Data Management

The data entry is done in the field camp and MRL Surigao office but database maintenance and safekeeping is done at Surigao City office. Mindoro’s office has since been transferred to Butuan City (March 2008). To ensure the security of the data, both digital and hard copies of datasets and field sheets are likewise maintained in Mindoro’s main office in Makati City.

Since errors are introduced through incorrect transcription of physical field data, all entries of data into the computer are checked by field geologists especially the core logging, sampling data and recovery sheets.

Assay results are entered electronically from digital Excel files e-mailed by the laboratories.

Once the datasets are with the Data Management Unit, the entries are again re-checked for consistency vis-à-vis the hard copies. These are also checked for possible logical errors.

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DRILLING ACTIVITY

Drill Hole No: AGL-542 Date Started: 6/28/2010

Location: 10600N-9750EDate Completed:

6/29/2010

Rig Type: JCP1 Core Checker: CADIO CAPON

DateTime

ActivityFrom To

6/28/2010 12:55PM 1:00PMRIG DISMANTLING AND MACHINE DRILL MOBILIZATION TO AGL-543

1:00PM 2:30PM RIG ASSEMBLE SET-UP W/MACHINE DRILL AND CHECK-UP

2:30PM 3:28PM START CORING

3:28PM 4:55PM STANDBY; MACHINE TROUBLE; PINION GEAR

4:55PM 6:30PM RESUME CORING

6:30PM END OF SHIFT

6/29/2010 6:00AM 6:55AM BREAKFAST MOBILING TO RIG SITE MACHINE CHECK-UP

6:55AM 8:57AM START CORING

8:57AM 11:49AM STANDBY; MACHINE TROUBLE; PINION GEAR

11:49AM 12:00N RESUME CORING

12:00NN 12:35PM LUNCH BREAK

12:35PM 2:57PM RESUME CORING

2:57PM FINAL BTM 12.25M

EOH

21

AGATA NICKEL LATERITE PROJECTBOREHOLE RECOVERY SHEET

Drill Hole No. AGL-542 Location 10600N-9750E Date Started 6/28/2010

Total Depth 12.25 Total Rec. 11.45 Date Completed 6/29/2010

Next Site AGL-543 Rig No. JCP 1 Core Checker CADIO CAPON

Date TimeInterval

Core Run

Core Rec.

% Rec Lithology CommentsFrom To

6/28/2010 2:30PM 0.00 0.35 0.35 0.35 100 LF

6/28/2010 0.35 0.75 0.40 0.35 88 LA

6/28/2010 0.75 0.95 0.20 0.20 100 LA

6/28/2010 0.95 1.25 0.30 0.30 100 LA

6/28/2010 1.25 1.55 0.30 0.30 100 LB

6/28/2010 1.55 1.85 0.30 0.25 83 LB

6/28/2010 1.85 2.15 0.30 0.27 90 LB

6/28/2010 2.15 2.50 0.35 0.30 86 BLDR

6/28/2010 2.50 2.75 0.25 0.20 80 BLDR

6/28/2010 2.75 3.50 0.75 0.50 67 BLDR

6/28/2010 3.50 3.90 0.40 0.35 88 LB

6/28/2010 3.90 4.30 0.40 0.40 100 LB

6/28/2010 4.30 5.05 0.75 0.75 100 LB

6/28/2010 5.05 5.45 0.40 0.40 100 TM

6/28/2010 5.45 5.85 0.40 0.40 100 TM

6/29/2010 6:54AM 5.85 6.30 0.45 0.45 100 SAP

6/29/2010 6.30 6.50 0.20 0.20 100 SAP

6/29/2010 6.50 6.80 0.30 0.30 100 SAP

6/29/2010 6.80 7.05 0.25 0.25 100 SAP

6/29/2010 7.05 7.45 0.40 0.40 100 SROCK

22

6/29/2010 7.45 7.85 0.40 0.40 100 SAPROCK

6/29/2010 7.85 8.25 0.40 0.40 100 SAPROCK

6/29/2010 8.25 8.50 0.25 0.25 100 SAPROCK

6/29/2010 8.50 8.70 0.20 0.18 90 SAPROCK

6/29/2010 8.70 8.95 0.25 0.20 80 SAPROCK

6/29/2010 8.95 9.65 0.70 0.70 100 SAPROCK

6/29/2010 9.65 10.05 0.40 0.35 87 SAPROCK

6/29/2010 10.05 10.45 0.40 0.40 100 SAPROCK

6/29/2010 10.45 10.85 0.40 0.35 87 SAPROCK

6/29/2010 10.85 11.25 0.40 0.40 100 SAPROCK

6/29/2010 11.25 11.80 0.55 0.45 82 SAPROCK

6/29/2010 11.80 12.15 0.35 0.35 100 SAPROCK

6/29/2010 EOH 12.15 12.25 0.10 0.10 100 BEDROCK

AVE. 12.25 11.45 93

23

AGATA NICKEL LATERITE PROJECT DRILL HOLE LOG SHEET

Drill Hole No. AGL-542 Date Started: 28-Jun-10

Location Lawigan Date completed: 29-Jun-10

N Coordinate 10604.44 Remarks :

E Coordinate 9751.00 Drilling Contractor-Rig: JCP3

Collar Elevation : 267.43 Logged By : WF Espiritu

Final Depth : 12.25M Date Logged: June 28 to 29, 2010

From To Run Litho ColorWeathering

% Rock

Rock Size

MOISTURE

Comments

0.00 0.35 0.35 LF RBR 5F 1 MCONTAINS ORGANIC MATERIAL

0.35 1.25 0.90 LA RBR 5F 3 M

1.25 2.15 0.90 LB RBR_OBR 5F 4 M CONTAIN MN STAIN

2.15 3.50 1.35 BLDR GY 2 79 1 DRW/ GOUGE OF SSHz FROM 3.20m-3.50m

3.50 5.05 1.55 LB RBR_OBR 5F 4 M CONTAIN MN STAIN

5.05 5.85 0.80 TM RBR_GNOBR 5 5 M

5.85 7.15 1.30 SAP GNOBR 5_4 8 MW/ GOUGE OF SSHz FROM 6.30M-6.45M

7.15 12.15 5.00 SAPROCK GYGNBR 2_5 52 1 MW/ INFILL OF CLAY MATERIAL FROM 8.95m-9.35m, FAULT-CONTROLLED

12.15 12.25 0.10 BEDROCK GY 2 72 1 DR Hz

EOH

25


SAMPLE PREPARATION SHEET

HOLE ID

SERIES NO

FROM TO RunWeight

Wet (Kg)SAMPLE

NOGEOLOGY

SAMPLING REMARKS

AGL-454 40 0.00 1.00 1.00 1.86 SU08307 LF

AGL-454 1 1.00 1.85 0.85 2.29 SU08308 LF

AGL-454 2 1.85 2.85 1.00 2.54 SU08309 LA

AGL-454 3 2.85 3.75 0.90 1.63 SU08310 LB

AGL-454 4 3.75 4.00 0.25 0.48 SU08311 SAP

AGL-454 5 4.00 4.20 0.20 0.36 SU08312 BLDR

AGL-454 6 4.20 4.85 0.65 1.37 SU08313 SAP, BLDR

AGL-454 7 4.85 5.30 0.45 0.95 SU08314 SAP

AGL-454 8 5.30 6.10 0.80 1.75 SU08315 BLDR

AGL-454 9 6.10 6.90 0.80 1.87 SU08316 SAP

AGL-454 10 6.90 7.90 1.00 2.17 SU08317 RSAP, SAP

AGL-454 11 7.90 8.95 1.05 2.11 SU08318 SAP

AGL-454 12 8.95 9.90 0.95 1.87 SU08319 SAP

AGL-454 13 9.90 10.90 1.00 2.16 SU08320 SAP

AGL-454 14 10.90 12.00 1.10 2.18 SU08321 SAP

AGL-454 15 12.00 13.10 1.10 2.41 SU08322 SAP

AGL-454 16 13.10 14.20 1.10 2.63 SU08323 SAPROCK, BLDR

AGL-454 17 14.20 15.40 1.20 2.70 SU08324 BLDR

AGL-454 18 15.40 16.10 0.70 1.74 SU08325 RSAP

AGL-454 19 16.10 17.55 1.45 3.38 SU08326 RSAP

AGL-454 20 17.55 18.75 1.20 2.31 SU08327 SAPROCK

AGL-454 21 18.75 20.00 1.25 2.69 SU08328 SAPROCK

AGL-454 22 20.00 20.95 0.95 2.13 SU08329 SAPROCK

AGL-528 23 0.00 1.00 1.00 2.02 SU08330 LF, LA

AGL-528 24 1.00 2.05 1.05 2.38 SU08331 LA

26

AGL-528 25 2.05 3.15 1.10 2.90 SU08332 LA

AGL-528 26 3.15 3.80 0.65 1.51 SU08333 LB

AGL-528 27 3.80 4.80 1.00 2.30 SU08334 LB

AGL-528 28 4.80 5.80 1.00 2.22 SU08335 LB

AGL-528 29 5.80 6.85 1.05 2.01 SU08336 LB

AGL-528 30 6.85 7.35 0.50 1.12 SU08337 TM

AGL-528 31 7.35 8.25 0.90 1.87 SU08338 SAP

AGL-528 32 8.25 8.70 0.45 1.18 SU08339 BLDR

AGL-528 33 7.35 8.25 0.90 0.98 SU08340 DUP

AGL-528 34 8.70 9.85 1.15 2.54 SU08341 SAP

AGL-528 35 9.85 10.30 0.45 1.35 SU08342 BLDR

AGL-528 36 GBM 903-5 SU08343 GBM

AGL-528 37 10.30 11.45 1.15 2.80 SU08344 SAP

AGL-528 38 11.45 12.95 1.50 3.35 SU08345 SAP, BLDR

HOLE ID

SERIES NO

FROM TO Run Weight

Wet (Kg) SAMPLE

NO GEOLOGY

SAMPLING REMARKS

AGL-528 39 12.95 13.75 0.80 1.60 SU08346 SAP

AGL-528 40 13.75 14.60 0.85 2.40 SU08347 BLDR

AGL-528 1 14.60 15.60 1.00 1.85 SU08348 SAP

AGL-528 2 15.60 16.25 0.65 1.58 SU08349 RSAP, BLDR

AGL-528 3 16.25 16.70 0.45 1.57 SU08350 RSAP, BLDR

AGL-528 4 16.70 17.10 0.40 0.92 SU08351 BLDR

AGL-528 5 17.10 18.55 1.45 3.82 SU08352 RSAP, BLDR

AGL-528 6 18.55 19.75 1.20 3.45 SU08353 SAPROCK

AGL-528 7 19.75 20.70 0.95 2.34 SU08354 SAPROCK

AGL-528 8 20.70 21.50 0.80 2.30 SU08355 SAPROCK

AGL-528 9 21.50 22.30 0.80 2.52 SU08356 BEDROCK

AGL-543 10 0.00 0.95 0.95 1.72 SU08357 LF, LA, TM

AGL-543 11 0.95 1.95 1.00 1.67 SU08358 SAP

AGL-543 12 1.95 2.95 1.00 1.89 SU08359 SAP

AGL-543 13 2.95 3.90 0.95 1.94 SU08360 SAP

AGL-543 14 3.90 4.90 1.00 2.26 SU08361 SAP

27

AGL-543 15 4.90 5.75 0.85 1.76 SU08362 RSAP

AGL-543 16 5.75 6.90 1.15 2.26 SU08363 SAPROCK

AGL-543 17 6.90 7.85 0.95 2.25 SU08364 SAPROCK

AGL-543 18 7.85 9.35 1.50 2.01 SU08365 SAPROCK

AGL-543 19 9.35 10.55 1.20 2.38 SU08366 SAPROCK, BEDROCK

AGL-543 20 6.90 7.85 0.95 0.91 SU08367 DUP

AGL-542 21 0.00 1.25 1.25 2.54 SU08368 LF, LA

AGL-542 22 1.25 2.15 0.90 1.63 SU08369 LB

AGL-542 23 2.15 3.50 1.35 2.04 SU08370 BLDR

AGL-542 24 3.50 4.30 0.80 1.46 SU08371 LB

AGL-542 25 4.30 5.05 0.75 1.10 SU08372 LB

AGL-542 26 5.05 5.85 0.80 1.26 SU08373 TM

AGL-542 27 5.85 7.15 1.30 2.47 SU08374 SAP

AGL-542 28 7.15 8.25 1.10 1.95 SU08375 SAPROCK

AGL-542 29 8.25 9.25 1.00 1.84 SU08376 SAPROCK

AGL-542 30 9.25 10.25 1.00 2.28 SU08377 SAPROCK

AGL-542 31 GBM 397-6 SU08378 GBM

AGL-542 32 10.25 11.25 1.00 2.38 SU08379 SAPROCK

AGL-542 33 11.25 12.25 1.00 1.88 SU08380 SAPROCK, BEDROCK

28

TRANSMITTAL RECEIPT FOR COURIER

DATE : March 29, 2007

ATTENTION: LBC Express, P. Burgos St., Butuan City Please

acknowledge receipt of the following (in duplicate copies):

1 Crate #1 (28 bags) 55 kg. Tracking no. 6019694795 2 Crate #2 (25 bags) 62 kg. Tracking no. 6019694617 3 Crate #3 (27 bags) 66 kg. Tracking no. 6019694637 4 Crate #4 (26 bags) 74 kg. Tracking no. 6019694735 5 Crate #5 (22 bags) 44 kg. Tracking no. 6019695586 6 Crate #6 (15 bags) 35 kg. Tracking no. 6019694775

Dispatched by: Danilo F. Odtojan Date and time: 3/29/07 5:40 pm

Delivered by: Danilo F. Odtojan Date and time: 3/29/07 5:40 pm

Received by: (LBC personnel) Rico A. Orjansa Date and time received: 3/29/07 5:40 pm

Please use separate sheet when necessary.

D:\MRL-SURIGAO PROJECT\DOCUMENTS\FORMS\LBC_BXU_TR_24Mar07.doc

Eledia Apt., Tuazon Village, Barangay Luna, Surigao City Telefax No.: (6386)826-2658 • www.mindoro.com

29

Form No. SMP - 001

SAMPLE SUBMISSION FORM TO : McPhar Assay Laboratory BJS Compound 1869 P. Domingo Street Makati, Metro Manila

Tel. No. 896-1656 / 896-1681 / 896-7973 Fax No. 890-0290 email [email protected]

FROM : MRL Gold Phils., Inc. Unit 17b, Pearl of the Orient Bldg. 1318 Roxas Blvd. corner P. Faura, Ermita Manila Elidia Apt., Tuazon Vill., KM.3, Surigao City

Tel. No. 02 5258869 / 086 8262658 Fax No. email No. of Samples: 195 CORE DISPATCH No. 2007 AGL 02

SAMPLE DESCRIPTION NO. SAMPLE TYPE

PREPARATION INSTRUCTIONS

SEE McPHAR REF. DOC NO. SMP-003 SECTIONS

SP1 TO SP9

ELEMENTS REQUIRED

ASSAY METHOD(S) SEE McPHAR REF. DOC NO. SMP-003

OTHER INSTRUCTION

Box # 1

17894 - 17910 17 core

Ni, Co, Fe, Mg and Al,

Dissolving a 25g: charge with a two acid digest. (using hydrochloric and nitric acid) and reading the results by atomic absorption spectroscopy (AAS)

Box # 2

17911 - 17937 27 core

Box # 3

17938 - 17960 23 core

Box # 4 17961 - 17988 28 core

Si Si Analysis by a gravimeter process.

Box # 5

17989 - 17800 12 core

17501 - 17519 19 core

For Density Analysis : After Density Analysis return to tag no. From : 17585 back to 17563 17586 back to 17565 17587 back to 17570 17588 back to 17581

Box # 6 17520 - 17545 26 core

Box # 7

17546 - 17562 17 core

Box # 8 Note : All samples must be analyzed for the 6 elements as indicated 17563 - 17588 26 core

Reporting Send results and invoice to person indicated below Send results and invoice to : Fax results to :

E-mail : [email protected]/[email protected]

Submitted by Ferland Tagura

Date 14-Apr-07

TEL: 896-1656; 896-1681; 896-7973 FAX: (63-2) 815-8195; (63-2) 761-2080

FAX: (63-2) 890-0290 e-mail: [email protected] email: [email protected]

30

SAMPLE SUBMISSION FORM: SERIAL NO. 000015

Client Order No.: Submitted by: Jean Ravelo Project: Agata Nickel Laterite Project

SENDER:

MRL GOLD PHILS, INC.

Unit 604 Penthouse

Oppen Bldg

349 Sen. Gil Puyat Ave.,

Makati City

Phone: 895-5459

Email: www.mrlgold.com.ph/webmail

Courier Delivered

Con. Note / AWB:

Originating from AGATA

No. of packages 10 SACKS

No. of samples : 243 SAMPLES

Security Tag No. 2010-AGL-010

Date June 24, 2010

Report to: MR. TONY CLIMIE

Copies to

1. MR. EDSEL M. ABRASALDO

2. MS. JEAN S. RAVELO

Air bag Post Email

XX

Invoice to: MR. EDSEL M.

ABRASALDO

Sample Numbers Sample Type

Instructions / Concentration Ranges

Elements Method of Analysis

BOX 1 SU07825 – SU07856 32 Core As per quotations given

by Mrs. Torre 13 elements +

LOI XRF Fusion

BOX 2 SU07857 – SU07880 24 Core - Do - - Do - - Do -








243 samples

Preparation Schemes

PT – Total Preparation: Dry, crush, pulverize entire sample to 95% passing 200#.

Intertek Testing Services Phils. Inc.

Warehouse 7, Phicrest 1 Compound

Km. 23, West Service Road

Cupang, Muntinlupa 1772

31

PB – Basic Preparation: Dry, crush, split, pulverize <1.5 Kg to 95% passing 200#, retain coarse residue.

PS – Soil Preparation: Dry, pulverize < 1.5 Kg to 95% passing 200#.

Other - As per client instructions ______________________________________________________________________________

Sample Storage /Disposal Hold 3 months then dispose

Hold 3 months then return to client-XXX

Hold 3 months then paid storage

Hold 3 months then contact client

Please note that storage charges apply after 3 months. Samples are automatically stored unless the client advises otherwise.

JEAN S. RAVELO June 24, 2010

32

Appendix 3

McPhar / Intertek Sample Preparation Procedures

33

McPhar carries out high quality sample preparation and analytical procedures. It is an ISO 9001-2000-accredited laboratory and has been providing assay laboratory services to both local and foreign exploration and mining companies for more than 35 years. It served as the primary laboratory for the ANLP drilling. Its address is 1869 P. Domingo St., Makati City, Metro Manila.

McPhar Laboratory Protocols

Mcphar’s sample preparation procedures and analytical processing are illustrated in the flowcharts below. (Figures 1 and 2) Each sample is analyzed for nickel (Ni), cobalt (Co), iron (Fe), magnesium (Mg), aluminum (Al), silica (SiO2) and some samples for phosphorous (P).

The Ni, Co, Fe, Mg and Al are assayed by dissolving a 25g charge with a two acid digest using hot hydrochloric (HCl) and nitric acid (HNO3) and reading the results by Atomic Absorption Spectroscopy (AAS). The SiO2 and P are analyzed by gravimetric process.

McPhar has its own Quality Assurance / Quality Control (QA/QC) program incorporated in their sample preparation and analyses procedures. Every tenth sample and samples with "anomalous" results, i.e., samples having abnormally high or low results within a sample batch, are routinely checked. This is done by preparing a solution different from the solution on the regular sample taken on the same pulp of a particular sample.

Figure 1: Flowchart of Mcphar’s Sample Preparation for Laterite

Figure 2: McPhar’s Laterite Analysis Procedure Flowsheet

34

Intertek Testing Services Phils., Inc. is among Intertek’s global network of mineral testing laboratories. It provides quality assay analysis of mineral samples for nickel deposit exploration projects. Measures are taken by Intertek mineral testing laboratories to ensure that correct method development and quality protocols are in place to produce good quality results.

McPhar Laboratory Protocols

Their sample preparation procedure is illustrated in the following flowchart. (Figure 3)

Each sample is analyzed for nickel (Ni), cobalt (Co), iron (Fe), magnesium (Mg), aluminum (Al), silica (SiO2), CaO, Cr2O3, K2O, MnO, Na2O, P2O5, and TiO2. Whole rock analyses are done using X-ray Fluorescence. The samples are fused using lithium metaborate. XRF analysis determines total element concentrations that are reported as oxides.

For its internal QAQC, Intertek performs repeat analyses plus split sample analyses in every 15-20 samples. Furthermore, on the average, one standard reference material is inserted in every 40 samples, and one blank in every 60 samples.

Figure 3: Intertek’s Sample Preparation Procedure for Laterite

36

Appendix 4

ANLP Bulk Density Data

37

Table 1: Summary of Bulk Density Measurements

HORIZON Wet

Density Dry

Density

Moisture Content

%

No. of Samples

FERRUGINOUS LATERITE 1.72 1.20 30.49 30

LIMONITE 1.81 1.24 31.74 37

SAPROLITE (Pit Samples) 1.98 1.46 26.11 17

SAPROLITE (Core Samples) 1.82 1.45 20.60 19

Table 2: Bulk Density Measurements on Ferruginous Laterite Materials

Sample No. Wet Density Dry Density Moisture Content %

1 1.70 1.15 32.37

2 1.85 1.29 30.19

3 1.62 1.26 21.98

4 1.67 1.15 31.13

5 1.98 1.34 32.06

6 2.03 1.49 26.70

7 1.63 1.10 32.85

8 1.88 1.33 29.41

9 1.63 1.15 29.16

10 1.54 1.03 33.00

12 1.69 1.24 27.06

13 1.54 1.03 33.26

14 1.56 1.05 32.53

15 1.86 1.17 37.14

16 1.53 1.13 26.32

17 1.61 1.10 31.52

18 1.58 1.05 33.11

38

19 1.59 1.07 32.65

20 1.60 1.24 22.35

21 1.95 1.32 32.28

22 1.96 1.29 33.83

23 1.57 1.13 28.29

24 1.62 1.19 26.61

25 1.59 1.09 31.63

26 1.78 1.22 31.65

27 1.78 1.27 28.82

28 1.88 1.27 32.13

29 1.54 1.05 31.74

30 2.07 1.38 33.12

31 1.84 1.29 29.82

Table 3: Bulk Density Measurements on Limonite Materials


32 1.76 1.14 34.97

33 2.07 1.46 29.50

34 1.75 1.22 30.40

35 1.67 1.13 32.75

36 1.88 1.34 28.52

37 1.97 1.35 31.45

38 1.99 1.36 31.72

39 1.90 1.30 31.24

40 2.00 1.34 32.83

41 2.04 1.40 31.44

42 1.82 1.25 31.42

43 1.82 1.22 33.21

44 2.02 1.40 30.72

45 1.82 1.21 33.67

39

46 1.67 1.13 32.10

47 1.74 1.21 30.50

48 1.73 1.17 32.43

49 1.91 1.36 28.84

50 1.86 1.27 31.86

51 1.64 1.09 33.65

52 1.63 1.06 34.75

53 1.83 1.20 34.29

54 1.58 1.06 33.35

55 1.77 1.26 28.86

56 1.66 1.19 28.48

57 1.75 1.28 26.83

58 1.79 1.14 36.50

59 1.67 1.03 38.31

60 1.82 1.32 27.17

61 1.87 1.31 30.06

62 1.60 1.05 34.19

63 1.83 1.21 33.91

64 1.89 1.31 30.87

65 1.82 1.17 35.80

66 1.75 1.23 30.00

67 1.82 1.23 32.55

68 1.97 1.47 25.23

Table 4: Bulk Density Measurements on Saprolite Materials (Pit Samples)


69 2.08 1.338 35.8

40

70 1.96 1.336 31.8

71 2.17 1.548 28.5

72 2.12 1.609 24.1

73 2.20 1.711 22.3

74 2.23 1.380 38.1

75 1.71 1.425 16.7

76 1.91 1.338 29.8

77 2.03 1.498 26.2

78 2.16 1.714 20.8

79 1.95 1.355 30.6

80 1.89 1.323 30.0

81 1.73 1.340 22.6

82 1.651 1.348 18.4

83 1.90 1.505 20.7

84 1.83 1.558 14.9

85 2.15 1.449 32.6

Table 5: Bulk Density Measurements on Saprolite Materials (Core Samples)


13666 1.96 1.52 22.24

13905 1.61 1.18 26.84

13909 1.68 1.31 21.90

13913 2.13 1.93 9.33

13603 1.79 1.30 27.48

13612 1.75 1.11 36.58

13606 1.74 1.39 19.90

13877 1.96 1.67 14.61

13880 2.13 1.80 15.35

13884 1.89 1.44 23.99

13907 1.72 1.37 20.37

41

13912 1.62 1.15 28.79

13917 1.84 1.53 16.68

13923 1.90 1.66 12.72

17582 1.64 1.28 21.98

17586 1.70 1.28 24.66

17596 1.90 1.68 11.43

17604 1.70 1.26 25.64

17610 1.90 1.69 10.82

Figure 1: Graphs of Dry Bulk Density Measurements

Figure 2: Graphs of Moisture Content

0.0

0.5

1.0

1.5

2.0

Dry

Den

sity

DRY DENSITYLimonite

0.0

1.0

2.0

3.0

Dry

Den

sity

DRY DENSITYSaprolite (Core Samples)

0.00

0.50

1.00

1.50

2.00

Dry

Den

sity

DRY DENSITY Saprolite (Pit Samples)

42

0

10

20

30

40M

ois

ture

Co

nte

nt

(%)

MOISTURE CONTENTFerruginous Laterite

0

10

20

30

40

Mo

istu

re C

on

ten

t (%

)

MOISTURE CONTENT Saprolite (Core Samples)

0

10

20

30

40

Mo

istu

re C

on

ten

t (%

)

MOISTURE CONTENT Saprolite (Pit Samples)

43

Appendix 5

ANLP Resource Estimate

Statistics and Variography

44

Figure 1: Histograms for Limonite.

0

0

5

5

10

10

AL_PCT

AL_PCT

0.00

0.00

0.01

0.01

0.02

0.02

0.03

0.03

0.04

0.04

0.05

0.05

0.06

0.06

0.07

0.07

Frequencies

Frequencies

0.0

0.0

0.1

0.1

0.2

0.2

0.3

0.3

0.4

0.4

0.5

0.5

0.6

0.6

0.7

0.7

CO_PCT

CO_PCT

0.00

0.00

0.05

0.05

0.10

0.10

0.15

0.15

Frequencies

Frequencies

10

10

20

20

30

30

40

40

50

50

60

60

FE_PCT

FE_PCT

0.000

0.00

0.025

0.025

0.050

0.050

0.075

0.075

0.100

0.100

Frequencies

Frequencies

0

0

10

10

20

20

MG_PCT

MG_PCT

0.0

0.0

0.1

0.1

0.2

0.2

0.3

0.3

0.4

0.4

0.5

0.5

0.6

0.6

Frequencies

Frequencies

0

0

1

1

2

2

NI_PCT

NI_PCT

0.00

0.00

0.01

0.01

0.02

0.02

0.03

0.03

0.04

0.04

0.05

0.05

0.06

0.06

0.07

0.07

Frequencies

Frequencies

0

0

10

10

20

20

30

30

40

40

50

50

60

60

SIO2_PCT

SIO2_PCT

0.0

0.0

0.1

0.1

0.2

0.2

0.3

0.3

0.4

0.4

0.5

0.5

Frequencies

Frequencies

45

Figure 2: Histograms for Saprolite.

0

0

5

5

10

10

AL_PCT

AL_PCT

0.0

0.0

0.1

0.1

0.2

0.2

0.3

0.3

0.4

0.4

Frequencies

Frequencies

0.0

0.0

0.1

0.1

0.2

0.2

CO_PCT

CO_PCT

0.0

0.0

0.1

0.1

0.2

0.2

0.3

0.3

0.4

0.4

Frequencies

Frequencies

0

0

10

10

20

20

30

30

40

40

50

50

60

60

FE_PCT

FE_PCT

0.00

0.00

0.05

0.05

0.10

0.10

0.15

0.15

0.20

0.20

Frequencies

Frequencies

0

0

10

10

20

20

30

30

MG_PCT

MG_PCT

0.00

0.00

0.01

0.01

0.02

0.02

0.03

0.03

0.04

0.04

0.05

0.05

0.06

0.06

0.07

0.07

0.08

0.08

Frequencies

Frequencies

0

0

1

1

2

2

3

3

NI_PCT

NI_PCT

0.00

0.00

0.01

0.01

0.02

0.02

0.03

0.03

0.04

0.04

0.05

0.05

Frequencies

Frequencies

0

0

10

10

20

20

30

30

40

40

50

50

60

60

70

70

80

80

SIO2_PCT

SIO2_PCT

0.00

0.00

0.05

0.05

0.10

0.10

0.15

0.15

0.20

0.20

0.25

0.25

Frequencies

Frequencies

46

Figure 3: Contact analysis for Ni, Fe, Al, Co, MG and SiO2 from Limonite to Saprolite

47

Figure 4: Variograms for Al, (Limonite top, Saprolite bottom).

N0

0

0

100

100

200

200

300

300

400

400

500

500

Distance (m)

Distance (m)

0.0

0.0

0.5

0.5

1.0

1.0

1.5

1.5

2.0

2.0

2.5

2.5

Variogram : AL_PCT

Variogram : AL_PCT

D-90

0.0

0.0

2.5

2.5

5.0

5.0

7.5

7.5

10.0

10.0

Distance (m)

Distance (m)

0

0

1

1

2

2

3

3

4

4

5

5

6

6

7

7

8

8

Variogram : AL_PCT

Variogram : AL_PCT

N0

0

0

100

100

200

200

300

300

400

400

500

500

Distance (m)

Distance (m)

0.0

0.0

0.1

0.1

0.2

0.2

0.3

0.3

0.4

0.4

0.5

0.5

Variogram : AL_PCT

Variogram : AL_PCTD-90

0.0

0.0

2.5

2.5

5.0

5.0

7.5

7.5

10.0

10.0

Distance (m)

Distance (m)

0.0

0.0

0.1

0.1

0.2

0.2

0.3

0.3

Variogram : AL_PCT

Variogram : AL_PCT

48

Figure 5: Variograms for Co, (Limonite top, Saprolite bottom).

N0

0

0

100

100

200

200

300

300

400

400

500

500

Distance (m)

Distance (m)

0.000

0.00

0.001

0.001

0.002

0.002

0.003

0.003

0.004

0.004

0.005

0.005

Variogram : CO_PCT

Variogram : CO_PCT

D-90

0.0

0.0

2.5

2.5

5.0

5.0

7.5

7.5

10.0

10.0

Distance (m)

Distance (m)

0.0000

0.00

0.0025

0.0025

0.0050

0.0050

0.0075

0.0075

0.0100

0.0100

Variogram : CO_PCT

Variogram : CO_PCT

N0

0

0

100

100

200

200

300

300

400

400

500

500

Distance (m)

Distance (m)

0.0000

0.00

0.0001

0.0001

0.0002

0.0002

0.0003

0.0003

0.0004

0.0004

Variogram : CO_PCT

Variogram : CO_PCT

D-90

0.0

0.0

2.5

2.5

5.0

5.0

7.5

7.5

10.0

10.0

Distance (m)

Distance (m)

0.0000

0.00

0.0001

0.0001

0.0002

0.0002

0.0003

0.0003

0.0004

0.0004

Variogram : CO_PCT

Variogram : CO_PCT

49

Figure 6: Variograms for Fe, (Limonite top, Saprolite bottom).

N0

0

0

100

100

200

200

300

300

400

400

500

500

600

600

700

700

800

800

900

900

Distance (m)

Distance (m)

0

0

10

10

20

20

30

30

40

40

Variogram : FE_PCT

Variogram : FE_PCT

D-90

0.0

0.0

2.5

2.5

5.0

5.0

7.5

7.5

10.0

10.0

Distance (m)

Distance (m)

0

0

10

10

20

20

30

30

40

40

Variogram : FE_PCT

Variogram : FE_PCT

N0

0

0

100

100

200

200

300

300

400

400

500

500

Distance (m)

Distance (m)

0

0

5

5

10

10

15

15

20

20

25

25

Variogram : FE_PCT

Variogram : FE_PCT

D-90

0.0

0.0

2.5

2.5

5.0

5.0

7.5

7.5

10.0

10.0

Distance (m)

Distance (m)

0

0

5

5

10

10

15

15

20

20

25

25

Variogram : FE_PCT

Variogram : FE_PCT

50

Figure 7: Variograms for Mg, (Limonite top, Saprolite bottom).

N0

0

0

100

100

200

200

300

300

400

400

500

500

Distance (m)

Distance (m)

0

0

1

1

2

2

3

3

4

4

5

5

Variogram : MG_PCT

Variogram : MG_PCT

D-90

0.0

0.0

2.5

2.5

5.0

5.0

7.5

7.5

10.0

10.0

Distance (m)

Distance (m)

0

0

1

1

2

2

3

3

4

4

5

5

Variogram : MG_PCT

Variogram : MG_PCT

N0

0

0

100

100

200

200

300

300

400

400

500

500

Distance (m)

Distance (m)

0

0

5

5

10

10

15

15

Variogram : MG_PCT

Variogram : MG_PCT

D-90

0.0

0.0

2.5

2.5

5.0

5.0

7.5

7.5

10.0

10.0

Distance (m)

Distance (m)

0

0

5

5

10

10

15

15

Variogram : MG_PCT

Variogram : MG_PCT

51

Figure 8: Variograms for Ni, (Limonite top, Saprolite bottom).

N0

0

0

100

100

200

200

300

300

400

400

500

500

Distance (m)

Distance (m)

0.00

0.00

0.01

0.01

0.02

0.02

0.03

0.03

0.04

0.04

0.05

0.05

0.06

0.06

0.07

0.07

0.08

0.08

0.09

0.09

0.10

0.10

0.11

0.11

Variogram : NI_PCT

Variogram : NI_PCT

D-90

0.0

0.0

2.5

2.5

5.0

5.0

7.5

7.5

10.0

10.0

Distance (m)

Distance (m)

0.00

0.00

0.05

0.05

0.10

0.10

0.15

0.15

0.20

0.20

0.25

0.25

Variogram : NI_PCT

Variogram : NI_PCT

N0

0

0

100

100

200

200

300

300

400

400

500

500

Distance (m)

Distance (m)

0.00

0.00

0.05

0.05

0.10

0.10

0.15

0.15

0.20

0.20

0.25

0.25

Variogram : NI_PCT

Variogram : NI_PCT

D-90

0.0

0.0

2.5

2.5

5.0

5.0

7.5

7.5

10.0

10.0

Distance (m)

Distance (m)

0.0

0.0

0.1

0.1

0.2

0.2

0.3

0.3

Variogram : NI_PCT

Variogram : NI_PCT

52

Figure 9: Variograms for SiO2, (Limonite top, Saprolite bottom).

N0

0

0

100

100

200

200

300

300

400

400

500

500

600

600

700

700

800

800

900

900

Distance (m)

Distance (m)

0

0

10

10

20

20

30

30

40

40

50

50

Variogram : SIO2_PCT


D-90

0.0

0.0

2.5

2.5

5.0

5.0

7.5

7.5

10.0

10.0

Distance (m)

Distance (m)

0

0

10

10

20

20

30

30

40

40

50

50

60

60

70

70

80

80



N0

0

0

100

100

200

200

300

300

400

400

500

500

Distance (m)

Distance (m)

0

0

10

10

20

20

30

30



D-90

0.0

0.0

2.5

2.5

5.0

5.0

7.5

7.5

10.0

10.0

Distance (m)

Distance (m)

0

0

5

5

10

10

15

15

20

20

25

25



INDEPENDENT REPORT ON THE NICKEL LATERITE RESOURCE - AGATA NORTH ... · PDF fileIndependent...

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