Cordillera de Condor Review and Exploration Plan (2).Pd f

8/13/2019 Cordillera de Condor Review and Exploration Plan (2).Pd f

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M R SINERAL ESOURCE ERVICES NC , I .

To: Carlos Ballon, Mark Cruise

From: Paul Klipfel

Date: February 28, 2008

Re:

Cordillera de Condor Review and Exploration Plan

INTRODUCTION

This report summarizes geologic and logistic observations made in the course of a3 day reconnaissance visit to the Tambo property of Dorato Resources in the

Cordillera de Condor of northern Peru. This visit was made to observe the

projects geologic and physiographic setting as well as the style of mineralization

and develop an appropriate exploration plan that can be performed within the

logistic constraints of location, topography, and weather. The visit was madewith Dorato geologists Alberto Zapata and Jose Sanchez along with five other

Dorato field support staff. Although this visit focused on the Tambo area,evaluation of the much larger claim area is also considered.

The Tambo area lies within two large claim blocks held by Dorato along the

Peruvian border with Ecuador. Currently Tambo is the key prospective area

however, each of the claim blocks are prospective by virtue of knownmineralization and current exploration in adjacent Ecuador. Numerous North

American companies and informal miners are currently exploring and mining in

Ecuador up to the border. Incursions into Peru by informales have led to borderissues between the two countries. Currently, military guards from both countries

are posted along the border to assure that border integrity is honored.

The author, along with the Dorato group, hiked approximately 1.7 km into Peru to

the project area from the informal miner camp of Chinapintza in Ecuador.Permissions were obtained before hand to cross the border into Peru and return

without conventional immigration procedures. The group was welcomed grandlyat the Tambo military camp where we camped.

The area was reviewed by walking the main paths and examining outcrops and

ki E i i l i i b A l G ld i hi h d d d


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Cordillera del Condor Review and Exploration Plan February 28, 2008

AREA DESCRIPTION

The Tambo prospect lies along the eastern flank of Cordillera del Condor Range,

the eastern-most of the Andean ranges. The Peru-Ecuador border marks the crestof this range. These steep, heavily forested mountains are up to approximately

2200m with complex knife edge ridgelines descending steeply to end where

drainages converge. Streams slope steeply down to less steep river valleys that lieat ~700-1100m elevation. All of the streams in the area drain into the Amazon

basin.

The forest is dense with a complex array of canopy trees and different levels of

undergrowth. Primary forest is already gone in the vicinity of any past workingsand is being replaced by secondary growth at various stages of regeneration.

The wildlife of the area is not known but the spectacled bear is reportedly present

in the valleys. This bear is classified as vulnerable within the threatened status.

Puma and jaguar are likely to be present in the area and are not consideredthreatened species.

Development along the Peru side of the border is non-existent. The nearest roadis over 100km away. Border guards who were not helicoptered to the site walked

8 days to get there. Yet roads are present within 2 km of the project on the

Ecuadorian side.

Access to the rest of the land holdings is via similar Ecuadorian access, although,

this could be more difficult owing to closure of roads because of landslides and a

locked gate preventing access across Aurelians concession.

GEOLOGY AND MINERALIZATION

The geology and mineralization have been mapped as best as possible by the

Anglo team. Their work is to a high standard. Advancing the geologicunderstanding of Tambo will take additional work to open up the area.

Rocks of the Tambo area consist of various felsic volcanics interpreted to betuffaceous in origin. These include quartz-rich and quartz poor varieties.

Changes in grain size and composition such as quartz-crystal tuff, feldspar crystal

tuff, possible pumice tuff, and ashy layers suggest that most of the rocks are partof a once coherent pyroclastic stratigraphy. No bedding features were observed

that could help establish the attitude of volcanic strata.


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Various types of breccia outcrop or are found as float. Most examples are clearly

fault breccia. However, some could be pyroclastic or hydrothermal breccias (see

photos).

Faulting is evident almost everywhere. Fault planes occur in a variety of

directions with competing cross-cutting relationships. The most common fault

orientation observed is approximately E-W. Other faults 30 degrees of E-W

could be flexures of the same family of faults or could be members of differentaged sets trending more northwesterly or northeasterly. Other significant faults

trend northwest or northeast. Where some faults trend E-W, there are also north-

south faults and fractures (see photos). These are not observed among thenorthwest or northeast sets.

The fault and fracture patterning does not appear to conform with a singlestructural model and is therefore interpreted to be the product of a multi-stage or

evolving (rotating?) tectonic history. Understanding the regional evolution of this

area may help categorize various structural elements as relating to particular

tectonic events.

Gold is clearly present in veins and within fault gouge as indicated by workings.

Curiously, silicified rock with sulfide that may carry gold has not been mined. It

is possible that past mining has been on easily extracted gold in broken veins and

fault gouge with no effort put into mining tenacious silicified zones. Abandonedbags of ore largely contain clay gouge from faults with vein fragments. Faults

contain up to 20% disseminated fine to coarse-grained pyrite. Veins contain less

pyrite, though local patches can be massive.

Base metal sulfides are also present. Galena and sphalerite are observed among

sulfide veins in silicified dump rocks. Possible black silver(?) sulfosalt mineralsare also present. Local malachite is present.

Gold-bearing quartz-sulfide veins follow the same structural patterns as the faults

and are strongly associated spatially with faults. Again, the patterning suggests

that veining documents multiple deformation events. To the extent that this istrue, veins associated with a particular event may be more strongly mineralized

than those related to a different event.

Silicified zones (not mined) with sulfide-bearing veinlets and disseminated sulfide

appear to be oriented in the same directions also. These zones appear to bel i l id ifi d b h h b d l d h f


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exhibit weak drusy quartz. This style appears to be weak or incipient vuggy silica

and occurs in the most significant fault zones. If correct, this alteration may be

peripheral to more intense alteration. At this stage of understanding, it is notpossible to identify any alteration vectors. Also, even with more information, and

with the degree to which these rocks are faulted, it may be difficult to accurately

select vector directions.

The geology and mineralization of the rest of the claim blocks is not known

except at the generalized regional scale. However, reconnaissance sampling byAnglo Gold identified numerous areas with potential anomalies. As a region, the

claims lie along strike of terrane which in Ecuador hosts porphyry and epithermaldeposits or is currently under exploration for such deposits. Therefore, it isreasonable to conclude that the Dorato claims are prospective for this type of

mineralization. At Tambo, the mineralization and host rocks track across the

border into Ecuador where extensive informal mining is currently in progress.

Thre is no reason to think that the Peru side of the border has any lessmineralization.

GEOLOGIC SYNTHESIS

The nature of the veins, faults and condition of host rocks all suggest that

mineralization at Tambo is above or peripheral to a magmatic system which atdepth could be porphyry style. If the Peruvian and Ecuadorian area of alteration

and mineralization is assessed together, it appears to be large (xx2km), consistent

with the notion that this area hosts a large mineralized system.

At the scale of the Tambo prospect, the exploration target should be a vein set,vein zone, or area of silicification with pervasive gold mineralization. Until more

is learned that might change this target concept, exploration should be guided by

actions that help assess this type of deposit.

The work done by Anglo is excellent in terms of locating and depicting on a map,

the known mines and geology. However, they only gained information in places

that were accessible on existing paths. There are likely considerably moreworkings and more information that can be gained if exposures can be accessed.

Local miners have likely done a good job of finding outcropping and easily

developed gold mineralization in gouge (Why break your back and tools on thehard silicified stuff?). So it is inferred that the existing workings are a biased

sample of the mineralization present at Tambo and only an indication that there is


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Advancement of Tambo and regional portions of the property, if successful, offer

business opportunities for the future.

EXPLORATION DISCUSSION AND RECOMMENDATAIONS

Exploration of the Cordillera del Condor property needs to be planned and

executed according to strategic goals of the company as concerns the rate of

expenditure and desired outcome for that expenditure. Most of the property iseffectively unexplored with the exception of occasional rock, soil, or stream

sediment samples. By contrast, the Tambo area is clearly a target area worthy ofdrilling now. Therefore, there are two styles of exploration or activity paths thatneed to be considered. The first is advancement of the Tambo target to acquire

favorable drill intercepts. The second path is regional exploration through stream

sediment and float sampling along with prospecting. Both paths present

logisitical difficulties which are not insurmountable, but require time, budgetcommitment, and considerable physical effort on the part of field staff.

The Tambo property is a worthy drill target at this time. However, substantialfield work should be undertaken to open up the area, improve geologic and

mineralization understanding, and identify the most appropriate drill target

locations. The existing Anglo-recommended drill holes are appropriate andprobably should be included in the drill program, but with a better understanding

of the geology and mineralization ahead of time, new and/or better sites may

become evident. Field work and logistics should be timed to achieve completionof a drill program before the end of the dry season in late (?) September.

The regional program should be designed so that the greatest possible area is

covered by sampling. Short of complete coverage, key areas that may be

prospective based on structural or other evidence might be prioritized for a first

phase effort. The logistics of accessing sample locations will be difficult. Oncethere, collection of appropriate sample media on steep slopes or in large rapid-

flowing rivers may present additional complications. Once anomalous areas are

identified, follow-up surveys should be undertaken. In streams that are smallenough to hike up (wade up), prospecting float can be very effective and should

be part of the regional program. It is likely that a first round of sampling is all

that can be accomplished this field year.

In each case, access needs to be gained first on foot, presumably from Ecuador, to


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The military staff were very hospitable and welcoming. However, for more than

a couple days stay, Dorato needs to be able to function independently. A new

camp needs to be established near the existing camp, but apart sufficiently toallow independent activity. A favored site has been selected (see photos). The

next trip to Tambo should be to clear a camp area, establish a helipad, and camp

terraces for construction. This could be followed by the first rounds of campsupplies and construction materials delivered by helicopter.

Once established, a camp probably should be manned continuously. I suggestthree crews with staggered weekly arrival or two crews with alternate week

arrival. A camp manager needs to be on site at all times. Radio communicationsfor weather and flying are essential. The camp should have quarters, kitchen-dining, office, and bath/lav facilities, generator, storage space for gear and

samples. These can be constructed in local traditional manner (wood and

corrugated sheet metal) or more like the Alaskan style of tropical Weatherhaven

modular set-up and removal when completed. Decisions on this may be guidedby desires of the military. We will be living and working in their area of

influence and need to be on solidly good terms.

Normally at this stage of exploration, detailed soil sampling and geophysical

surveys are done, usually on a tight grid. However, the steep to very steep,

densely vegetated terrain (cliff) is not going to be negotiable for establishing asensible grid. Second, much to most of the surface material is transported down

slope significantly (hundreds of meters) in some cases. Slope failure and mass

wasting are major terrain-sculpting processes here. Anomalous metal content insoil may be displaced down slope or be buried by non-anomalous material from

above. For both reasons, a soil grid survey, although desirable, is deemed animpractical technique for this area. Geophysical techniques that rely on spaced

stations along lines will be similarly impractical in addition to having to deal with

difficult terrain correction factors.

In place of a soil grid or linear trenches, it is proposed that paths be prepared

along contour at regular spacing (~100m plan distance not slope distance). These

should begin as foot paths cut through the bush and then dug adequately to exposerock or weathered material in the uphill cut. Systematic channel sampling (2m

intervals) should be done along with sampling of specific rocks and veins.

Detailed mapping of rock type, alteration type, and structural features along eachline should be undertaken.


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StrategyTambo the goal of exploration this year should be to gather systematic

information about rock types, alteration types, and mineralization to guide

and complete drilling of ~ 10 holes 150-200m each. This should be doneby:

1. cutting and digging evenly spaced lines along contour for geologicmapping and geochemical sampling.

2. Mapping of cut lines3. Systematic sampling along cut lines (2m intervals)4. Compilation of data and reevaluation of drill site selection5. Selection of drill sites6. Construction of drill sites7. Drilling; 1500 2000m of diamond core in 10 +/- holesA regional program should endeavor to:

1. collect a moderate to high density of stream sediment samples (500mspacings or tighter)

2. prospect stream float for vein, sulfide, altered material; pay attention towhere it stops and follow up slope.

3. Follow-up anomalies with soil program (gentle slopes) or Tambo style ofprogram (steep slopes)

Camps

construct new Tambo camp

plan and establish temporary regional satellite camps for 5-10 days of useeach according to radius of distance that can be travelled for sample

collection

Staffing

2-3 geos depending upon # of crews and rotations 3-4 cutter/digger crews of 3 or 4 each Camp manager and alternate Regional sampler crew (some may be from cutter digger crews) Logistics person and possibly assistant

Helicopter support

Hughes 500 for chopper-supported sampling; ideal for tight spaces forest


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Communications

Radio VHF?; Air traffic bands Satellite phone Satellite dish with internet connection

Scheduling

Should be systematic operations such as 1+ flights every Monday forcrew, supply and sample transport. No at-whim flying.

If drilling is to be in September, schedule deadlines should be workedbackward from that time to assure timely completion

Roadhead Base

Some sort of facility should be available here for storage, fuel, parking andgeneral staging activities

Work ProgramTambo

Complete ~3-4(?) line km of paths with bank cleaning for mapping andsampling

Complete an accurate surface survey of the project area and generate areasonably accurate topographic map. Use cut contour lines as survey

lines.

Collect samples at 2 m intervals along contour trenches ~500? Samples Collect other samples for select reasons

Regional

Stream sediment sampling to cover selected areas; ~500 1000?o Confluence triple setso 500m spacings up streams

Low water (dry season) is probably critical for this program to be

successful. Anything higher than low water will impede the ability ofsamplers to access material to collect for samples and prevent access or

travel in stream beds.

Float sampling; 200 samples Soil or contour trench follow-up


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A) View of military outpost camp for border security. Tents belong to the Doratovisitors.

B) Swampy ridge line trail.C) Typical route through secondary vegetation to eastern workings.D) View of the Peru-Ecuador border. Photo taken from Ecuador into Peru.E) Breccia of indeterminate origin. This looks like pyroclastc breccia, but is

probably fault or combined hydrothermal and tectonic breccia. It is altered

and filled with quartz-pyrite and pyrite veinlets. This material is from thecentral E-W shear zone that is the site of most of the workings.

F) Close-up view of pyrite veinlets in photo EG) East-West shear (pencil) truncates vertical en-echelon quartz veins.H) Weathered altered rock with only grain-supported quartz grains remaining. IT

is not clear if this is weathered leached rock (incipient vuggy silica) or leached

quartzite, or quartz eye rock. Regardless, it has been leached indicating

argillic to advanced argillic alteration.


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A) Weathered, QSP to argillic-altered coarse-grained quartz crystal tuff. Thisrock underlies most of the Tambo area.

B) East-west shear (parallel to the pencil) with adjacent partly silicified rock withnorth-south shear and quartz veinlets.C) View looking northeast along N60E-trending caved stopes on veins near

camp. Face is on the order of 15m high.D) Looking west along E-W stopes. View is approximately 12 m high.E) View looking southwest toward a fault-breccia face that trends 295. The fault

breccia face is the footwall of caved stopes a portion of which is exposed nextto Alex.


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Mineral Resource Services Inc. 13

Views covering 180 degrees facing east (top) and west (bottom). The Peru-Ecuador border follows the ridge along the skyline in the

bottom view.

S

S


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View to the east showing the proposed location for the new camp. The ridge line should be cleared for a helipad. The camp buildingsshould be below the ridgeline for weather and lightning shelter. Water can be acquired by running a flexible PVC line to a reservoir

near or above the reservoir used by the military. Means of purification will need to be considered.


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An approximate 160 degree view from steeply up the hill (right) to slightly down the hill (left) of a > 100m line of workings that

follow a 050 to 060 trend. The lowest adit drifts 140 perpendicular to the trend. Dump rocks from this adit are completely silicified

and filled with sulfide veinlets which include pyrite, sphalerite, galena and other indeterminate fine sulfides.

Documents

Cordillera de Condor Review and Exploration Plan (2).Pd f