1.0 nicaraguan gold properties property of merit report

Transcripción

Nicaraguan Gold Properties
3 May 2011
1.0
NICARAGUAN GOLD PROPERTIES
PROPERTY OF MERIT REPORT
Murra Mining Division
Nueva Segovia, Republic of Nicaragua
Centered at
UTM 16P
606,200E
1,526,600N
Submitted to:
Cassius Ventures Ltd.
Suite 1980 – 1075 West Georgia Street,
Vancouver, BC
V76E 3C9
3 May 2011
Prepared by:
R.J. Morris, M.Sc., P.Geo.
Moose Mountain Technical Services
1975 1st Ave. South
Cranbrook, V1C 6Y3, B.C. Canada
Phone: 250.489.0360
[email protected]
Nicaraguan Gold Properties, 3 May '11
Prepared for Cassius Ventures Ltd.
Page 1 of 67
3 May 2011
2.0
Table of Contents
1.0 .................................................................................................................................................... 1
2.0
Table of Contents ............................................................................................................... 2
1.1
List of Tables ................................................................................................................. 3
1.2
List of Figures ................................................................................................................ 3
3.0
Summary ............................................................................................................................ 4
4.0
Introduction ........................................................................................................................ 7
5.0
Reliance on Other Experts ................................................................................................ 11
6.0
Property Description and Location................................................................................... 12
7.0
Accessibility, Climate, Local Resources, Infrastructure and Physiography ..................... 18
8.0
History .............................................................................................................................. 21
9.0
Geological Setting ............................................................................................................ 23
10.0
Deposit Types ................................................................................................................... 25
11.0
Mineralization .................................................................................................................. 26
12.0
Exploration ....................................................................................................................... 31
13.0
Drilling ............................................................................................................................. 49
14.0
Sampling Method and Approach ...................................................................................... 50
15.0
Sample Preparation, Analyses and Security ..................................................................... 51
16.0
Data Verification .............................................................................................................. 54
17.0
Adjacent Properties .......................................................................................................... 55
18.0
Mineral Processing and Metallurgical Testing ................................................................. 56
19.0
Mineral Resource and Mineral Reserve Estimates ........................................................... 57
20.0
Other Relevant Data and Information .............................................................................. 58
21.0
Interpretation and Conclusions ......................................................................................... 59
22.0
Recommendations ............................................................................................................ 60
23.0
References ........................................................................................................................ 62
24.0
Date and Signature Page................................................................................................... 63
25.0
Additional Requirements for Technical Reports on Development Properties and
Production Properties .................................................................................................................... 66
26.0
Illustrations ....................................................................................................................... 67
Page 2 of 67
3 May 2011
1.1
Table 6-1 Table 6-2 Table 6-3 Table 11-1 Table 11-2 Table 12-1 Table 12-2 Table 12-3 Table 12-4 Table 12-5 Table 15-1 Table 17-1 Table 17-2 Table 17-3 Table 22-1 Table 22-2 List of Tables
Murra Area Concessions.......................................................................................... 12 CWN Area Concessions .......................................................................................... 12 CEN Area Concessions............................................................................................ 13 Sample Statistics, Rock Samples ............................................................................. 27 Correlation Coefficients, Rock Samples.................................................................. 27 Verification Sampling .............................................................................................. 31 Sample Summary, Fortress Exploration .................................................................. 32 Stream Sediment Samples, Murra Area ................................................................... 32 Soil Samples, Murra Area........................................................................................ 33 Rock Samples, Murra Area...................................................................................... 33 Summary of Standards ............................................................................................. 52 San Albino Trench Data .......................................................................................... 55 San Albino Area, Drillholes Results ........................................................................ 55 Arras Area, Drillholes Results ................................................................................. 55 MDLC Exploration Budget –Phase 1 ...................................................................... 61 MDLC Exploration Budget –Phase 2 ...................................................................... 61 1.2
List of Figures
Figure 4-1 Location Map ............................................................................................................. 8 Figure 4-2 Overview Map, North ................................................................................................ 9 Figure 4-3 Overview Map, Central Area ................................................................................... 10 Figure 6-1 Licence Area ............................................................................................................ 14 Figure 6-2 Property Map, Murra Area ...................................................................................... 15 Figure 6-3 Property Map, Central Area ..................................................................................... 16 Figure 6-4 Property Map, Central East Area ............................................................................. 17 Figure 7-1 Access Map, Murra Properties ................................................................................ 19 Figure 9-1 Regional Geology .................................................................................................... 24 Figure 12-1 Verification Sampling ......................................................................................... 31 Figure 12-2 Stream Sediment Anomalies, Murra Area........................................................... 35 Figure 12-3 Soil Sample Grid Areas, Murra Area .................................................................. 36 Figure 12-4 MDLC Area......................................................................................................... 37 Figure 12-5 MDLC Stream Sediment Samples ...................................................................... 38 Figure 12-6 MDLC Soil Samples .......................................................................................... 39 Figure 12-7 Deagueda Area, Soil Samples ............................................................................. 40 Figure 12-8 Mina America Soil Samples ................................................................................ 41 Figure 12-9 Mina America Rock Samples .............................................................................. 42 Figure 12-10 La Armenia Geology ........................................................................................... 43 Figure 12-11 Santa Barbara Hill, Rock Samples ...................................................................... 44 Figure 12-12 La Armenia, Rock Samples ................................................................................. 45 Figure 15-1 Blank Samples ..................................................................................................... 51 Figure 15-2 Standard Oreas 7Pb ............................................................................................. 52 Figure 15-3 Standard Oreas 51P ............................................................................................. 53 Figure 15-4 Standard Oreas 62Pb ........................................................................................... 53 Nicaraguan Gold Properties, 3 May '11
Page 3 of 67
3 May 2011
3.0
Summary
Sirocco Advisory Services Ltd. (Sirocco) and JAT Metconsult (JAT), jointly, obtained the
mineral rights to 16 properties in Nicaragua from Fortress de Nicaragua S.A. (FDN). The
properties were previously held by Fortress Minerals Corp. (Fortress) and were explored during
the period 2005 to 2007. In 2009 Fortress transferred title to all of the properties to FDN. As of
April 13, 2011, Sirocco and JAT have agreed in principle to transfer title of the properties to
Cassius Ventures Ltd. (Cassius).
The author has reviewed a letter from Cassius lawyer, Consortium Centro America Abogados,
dated April 27th, 2011, which verifies title information and royalties.
Cassius is the sole owner of the properties, though the Paso Real and Armenia concessions are
subject to a Joint Venture agreement with Minera Anglo Nevada (MANC). The properties are
subject to four royalty agreements, including:
1. Fortress Mineral Ltd for 0.5 % of the Net Smelter return.
2. Gabriel Amado Segura Valverde for 0.5 % Net Smelter return.
3. JAT Metconsult Ltd for 0.75% Net Smelter Return.
4. Sirocco Advisory Services Ltd 0.75% Net Smelter Return.
There are no further obligations to retaining the properties.
Moose Mountain Technical Services (MMTS) was retained by Cassius to assist with the
evaluation of the properties, to recommend an exploration program, and to prepare a Technical
Report compliant with NI 43-101 (the Instrument) and Form 43-101F1. The author conducted a
site visit and preliminary examination of the Murra properties 8 and 9 December 2010 and the
Cerro Santa Barbara area, part of the CWN properties, 7 December 2010. Based on his
experience, qualifications and review of the site and resulting data, the author, Mr. Morris, is of
the opinion that the preliminary exploration has been conducted in a professional manner and the
quality of data and information produced from the efforts meet or exceed acceptable industry
standards.
The Manto De La Corona (MDLC) gold occurrence in the Murra area of Nueva Segovia, northern
Nicaragua, is deemed to be the most advanced property and is considered a property of merit,
worthy of further exploration.
Sirocco and JAT jointly, completed due-diligence sampling at MDLC in September 2010, which
confirmed the presence of gold. The author has reviewed these data and verifies that the samples
indicate the presence of gold. Previous exploration on the property, by Fortress, includes
geological mapping, stream sediment sampling, soil sampling, sampling of old underground
tunnels, and trenching.
In the Murra area the Manto De La Corona (MDLC) prospect is the most advanced target and is
within “basement” lithologies. It is inferred that the area represents an elongated anticline,
trending to the northwest. Intrusive aplite, felsic sills and dykes are common in the core of the
anticline. Breccias are in direct contact with the intrusives, and occur in an echelon manner
Page 4 of 67
3 May 2011
approximately every 30m, parallel to foliation in the geological profile. The host of the
mineralization is green slate, from sedimentary rock, while on the other side of the creek it is
green phyllite from volcanic rock. Alteration includes minerals like talc, serpentinization
chlorite, and mica with quartz. There is also “metamorphic leaching” with carbon, graphite, and
quartz.
Free gold mineralization is visible with oxides and quartz in the breccia, in broken and distorted
mesothermal quartz veins, where the gold is visible in vugs with oxides, and in the latest quartz
strings. Sulfides include arsenopyrite, pyrite, some galena, and rarely sphalerite.
Mina America 1 and 2 concessions are where the most extensive and significant old workings
have been located. There are more than 200 tunnels and excavations done mostly by Ramon
Raudales for the Sandinistas army.
In the Murra area, Fortress had collected 3,659 rock samples, 4,243 soil samples, and 1,017
stream sediment samples over the properties. The stream sediment samples resulted in 32
anomalous samples in the Murra area, with values over 6,000ppb Au. Follow-up soil sampling
was conducted over five different areas including; Manto de la Corona, Mina America, Jalapena,
Los Angeles, and El Carmen. Maximum gold values of over 1,400ppb Au were reported and 56
samples showed greater than 100ppb Au. After the soil sampling was completed, detailed
trenching and prospecting was carried out at six different sites in the Murra area. The rock
samples are from one of, outcrop, trench, or underground tunnel. Maximum values are greater
than 127,000ppb Au and 168 samples showed greater than 1,000ppb Au.
The CWN properties straddle the northern end of the Nicaragua Depression. The properties
display alteration indicating a low-sulphidation epithermal model with quartz-adularia-sericite,
and boiling fan structures with skeletons filled of oxides out of pyrite. The area includes four
properties, La Raya II, La Armenia, La Leonesa, and Paso Real. In total, Fortress had collected
142 rock samples, 229 soil samples, and 21 stream sediment samples over the properties. The first
three properties are thought to cover the same fault systems that host the La India mine. The host
rocks are ryholite and basaltic andesite. The altered areas surrounds Santa Barbara hill on the
NW sector of the application and covers completely the hills of La Enramada, Armenia and a flat
area called La Milpa.
Paso Real Property in the northern part of the CWN area covers a stock of subvolcanic
porphyrytic rocks of granodioritic composition. The argillized stock is located along La India
fault system going NW. It has strings with quartz and oxides out of sulfides. The rock samples
from the stock range from 11ppb Au to 804 ppb Au. One of the faults cutting the stock has a
hydrothermal breccia two meters wide with a strike length of 250m.
The CEN properties are within the major Tertiary volcanic belt in the central part of the country.
The properties cover the La Campana rhyodacite stock, which is highly altered, argillization and
silicified. The area includes four properties, Muhan, Las Parras, La Francia Norte, and La
Argentina. In total, Fortress had collected 740 rock samples, 1196 soil samples, and 475 stream
sediment samples over the properties. The Muhan Property covers the La Campana rhyodacite
stock, which is highly altered, argillization and silicified.
Production has not taken place on any of the properties.
Page 5 of 67
3 May 2011
Because of the gold mining history in the Murra area and the positive results to date the MDLC
property is considered a property of merit deserving of further work. It is proposed that more
detailed prospecting, geological mapping, trenching, sampling, and ground geophysics be
undertaken to further explore the property and define specific drilling locations. A phase one
exploration program which includes geological mapping, ground magnetometer surveys, IP
surveys, geochemical sampling, and trenching is proposed. The Phase One exploration budget is
estimated to be $790,000. Phase Two exploration will be dependent on the success of Phase One
work, and includes drilling up to ten holes to test IP and geochem anomalies. The cost of Phase
Two work is estimated at $440,000.
Page 6 of 67
3 May 2011
4.0
Introduction
Sirocco Advisory Services Ltd. (Sirocco) and JAT Metconsult Ltd. (JAT), jointly, obtained the
mineral rights to 16 properties in Nicaragua from Fortress de Nicaragua S.A. (FDN). The
properties were previously held by Fortress Minerals Corp. (Fortress) and were explored during
the period 2005 to 2007. Sirocco and JAT intend to transfer their shares in FDN to Cassius
Ventures Ltd. (Cassius).
Moose Mountain Technical Services (MMTS) was retained by Cassius to assist with the
evaluation of the properties, to recommend an exploration program, and to prepare a Technical
Report compliant with NI 43-101 (the Instrument) and Form 43-101F1.
The Manto De La Corona (MDLC) gold occurrence in the Murra area of Nueva Segovia, northern
Nicaragua, is deemed to be the most advanced property and is considered a property of merit,
worthy of further exploration.
Sirocco and JAT, jointly, completed a due-diligence sampling at MDLC in September 2010,
which confirmed the presence of gold. Previous exploration on the property, by Fortress,
includes geological mapping, stream sediment sampling, soil sampling, sampling of old
underground tunnels, and trenching.
Mr. Robert J. Morris of MMTS conducted a site visit and preliminary examination of the Murra
area 8 and 9 December 2010. During the site visit, sufficient opportunity was available to
examine several tunnels and rock exposures, as well as conduct a general overview of the
property, and the condition of existing project infrastructure. Based on his experience,
qualifications and review of the site and resulting data, the author, Mr. Morris, is of the opinion
that the preliminary exploration has been conducted in a professional manner and the quality of
data and information produced from the efforts meet or exceed acceptable industry standards. It
is also believed that for the most part, the work has been directed or supervised by individuals
who are geologists.
As well, Morris spent one day, 7 December 2010, visiting the La Armenia property which is part
of the CWN area.
While actively involved in the preparation of the report, MMTS had no direct involvement or
responsibility in the collection of the data and information or any role in the execution or
direction of the work programs conducted for the project on the property or elsewhere. Much of
the data has undergone thorough scrutiny by project staff as well as certain data verification
procedures by MMTS (included in Item 16).
Sources of information are listed in the references, Item 23.
Page 7 of 67
3 May 2011
Figure 4-1
Location Map
Page 8 of 67
3 May 2011
Figure 4-2
Overview Map, North
Page 9 of 67
3 May 2011
Figure 4-3
Overview Map, Central Area
Page 10 of 67
3 May 2011
5.0
Reliance on Other Experts
Moose Mountain Technical Services (MMTS) prepared this report for Cassius Ventures Ltd.
(Cassius). The quality of information, conclusions and estimates contained herein are based on
industry standards for engineering and evaluation of a mineral project. The report is based on: i)
information available at the time of preparation, ii) data supplied by outside sources, iii)
engineering, evaluation, and costing by other technical specialists and iv) the assumptions,
conditions and qualifications set forth in this report.
The author has reviewed a letter from Cassius lawyer, Consortium Centro America Abogados,
dated 27 April 2011, which verifies title information and royalties.
Parts of this report, relating to the legal aspects of the ownership of the mineral claims, rights
granted by the Government of Nicaragua and environmental and political issues, have been
prepared or arranged by Cassius.
Page 11 of 67
3 May 2011
6.0
Property Description and Location
The FDN mineral exploration properties are in three different parts of Nicaragua, the northern
properties are referred to as the Murra properties, the central properties are referred to as the
CWN properties, while the eastern properties are referred to as the CEN properties.
The Murra properties consist of a contiguous land package with a total area of approximately
37,049.98ha, Table 6-1. The property is 16km northeast of Jicaro and 6km north of Murra, at
approximately 75º08’25”W Longitude and 6º32’35”N Latitude, Figures 6-1 and 6-2. The
property is in the sector of Alto el Picaho, La Quiebra village, on the main route that leads from
Ocotal to the north.
Table 6-1
Murra Area Concessions
Name
La Union
El Carmen
La Jalapena
Los Angeles
Murra
Bana
Mina America
Mina America II
Total
Area (Ha)
823.52
1,600
4,862.58
16,051
8,673.5
1,300
163
3576.46
37,050.06
Date of approval
13-March-08
2-Feb-06
20-July-06
20-July-06
23-May-06
13-Dec-06
8-Jan-07
13-Mar-08
Property file number
9-DM-96-2008
545-RN-MC-2006
542-RN-MC-2006
541-RN-MC-2006
593-RN-MC-2006
657-RN-MC-2006
677-RN-MC-2006
6-DM-93-2008
Issued Years
25
25
25
25
25
25
25
25
The CWN properties consist of a contiguous land package with a total area of approximately
62,135.59ha with the Paso Real property approximately 20km to the north, Table 6-2. Cerro
Santa Barbara, which is in the northern part of the La Leonesa property is 5.7km west of El
Sauce, a small community 35km SW of Esteli, at approximately 544652E and 1422959N (UTM,
NAD83), Figures 6-1 and 6-3. The Armenia property is centered at approximately 546825E and
1420643N (UTM, NAD83), approximately 4km south of Cerro Santa Barbara.
Table 6-2
CWN Area Concessions
Name
La Leonesa
Paso Real
La Raya II
Armenia
Total
Area (ha)
47,190.21
634.00
13,445.38
1,500
62,769.59
Date of Approval
13-Mar-08
18-Jun-07
13-Mar-08
19-Feb-09
10-DM-97-2008
16-EM-06-2007
7-DM-94-2008
12-DM-144-2009
Issued Years
25
25
25
25
The CEN areas consist of four individual properties, Table 6-3. The Muhan property is centered
around the village of Muhan in the province of Chontales, Figures 6-1 and 6-4. The Las Parras
property is centered around the village of La Batea in the province of Region Autonoma Atlantico
Sur. The Francia Norte and La Argentina properties are centered around the village of Presillitas
in the province of Region Autonoma Atlantico Sur. The main centres in the area are Villa
Sandino and Muelle De Los Bueyes.
Page 12 of 67
3 May 2011
Table 6-3
CEN Area Concessions
Name
La Argentina
Muhan
Las Parras
Francia Norte
Total
Area (ha)
1,020.00
25,610
9,378.00
1,955.00
37,963.00
Date of Approval
14-Feb-06
23-Aug-07
13-Mar-08
13-Mar-08
564-RN-MC/2006
49-DM-32-2007
8-DM-95-2008
5-DM-92-2008
Issued Years
25
25
25
25
Cassius is the sole owner of the properties, though the Paso Real and Armenia concessions are
subject to a Joint Venture agreement with Minera Anglo Nevada (MANC). The properties are
subject to four royalty agreements, including:
1. Fortress Mineral Ltd for 0.5 % of the Net Smelter return.
2. Gabriel Amado Segura Valverde for 0.5 % Net Smelter return.
3. JAT Metconsult Ltd for 0.75% Net Smelter Return.
4. Sirocco Advisory Services Ltd 0.75% Net Smelter Return.
There are no further obligations to retaining the properties.
The property boundaries are map coordinates determined by paper staking.
Surface ownership is held privately by numerous individuals for agricultural use. Nicaraguan law
allows for exploration on private lands with notification to the surface landowners and reasonable
compensation for surface disturbance caused by exploration activities.
Exploration activity requires permission of the landowners prior to conducting the work on a
mineral property. The current or future operations of Cassius, including exploration,
development and commencement of production activities on this property require such permits.
Other permits governed by laws and regulations pertaining to development, mining, production,
taxes, labour standards, occupational health, waste disposal, toxic substances, land use,
environmental protection, mine safety and other matters, may be required as the project
progresses.
At this time there are no environmental liabilities identified on the property.
Parts of this report, relating to the legal aspects of the ownership of the mineral claims, rights
granted by the Government of Nicaragua and environmental and political issues, have been
prepared or arranged by Cassius.
Page 13 of 67
3 May 2011
Figure 6-1
Licence Area
Page 14 of 67
3 May 2011
Figure 6-2
Property Map, Murra Area
Page 15 of 67
3 May 2011
Figure 6-3
Property Map, Central Area
Page 16 of 67
3 May 2011
Figure 6-4
Property Map, Central East Area
Page 17 of 67
3 May 2011
7.0 Accessibility, Climate, Local Resources,
Infrastructure and Physiography
FDN controls mineral properties in three different areas of Nicaragua. In the north the Murra
properties are centered approximately 5km north of the small village of Murra and 16km
northeast of the village of El Jicaro. The city of Ocotal, on one of the main highways to
Honduras, is approximately 65km to the southwest. A secondary road heading northeast from
Ocotal is used to access the western parts of the Murra Property through El Jicaro. The eastern
parts of the property are accessed by roads through the village of Murra.
Map 7-1 shows the two access routes from the village of El Jicaro, the eastern route leading to the
MDLC area and the western route leading to the Mina America area.
The climate in the Murra area is tropical with very pleasant temperatures as elevations are in the
1,000m range. There is daily bus service between El Jicaro and Ocotal, and several hotels in El
Jicaro. Water is abundant with many drainages on the property flowing year round. The property
is mountainous with the southern slopes being used for cattle grazing.
Three of the CWN properties are centered around the small village of El Sauce, approximately
35km southwest of the city of Esteli. El Sauce can be accessed from the main highway between
the cities of Leon and Sebaco, or from Esteli. The climate in the CWN area is sub-desert with
elevations are in the 150m range. The property is mostly flat with the rolling hills. Most of the
area is being used for cattle grazing and farming. There is good road access to the central parts of
the La Armenia, La Raya II, and La Leonesa properties.
The CEN area consists of four individual properties. The Muhan property is centered around the
village of Muhan in the province of Chontales, with good road access from Juigalpa and Villa
Sandino. The Las Parras property is centered around the village of La Batea, while the Francia
Norte and La Argentina properties are centered around the village of Presillitas in the province of
Region Autonoma Atlantico Sur. There is good road access through the area in and around the
central city of Muelle De Los Bueyes. The climate in the CEN area is sub-tropical with elevations
in the area are less than 300m. The areas are mostly flat with the rolling hills. Most of the area
is being used for cattle grazing and farming.
Page 18 of 67
3 May 2011
Figure 7-1
Access Map, Murra Properties
Page 19 of 67
3 May 2011
Photo 7-1
MDLC Area
Photo 7-1 is looking to the northwest and shows the typical topography and vegetation on the
southern slopes of the hills.
Photo 7-2
MDLC Area
Photo 7-2, showing the north side of the area in one of the creeks.
Page 20 of 67
3 May 2011
8.0
History
Since Colonial times intense gold extractions have occurred in portions of Nicaragua. Murra was
declared a County in 1827 by a group of 55 people, most of them artisanal miners. The name of
the County came from a US citizen whose surname was Murray, because of the difficulties in
pronunciation people called him Murra.
The most important mining undertakings found include:
 In the beginning of twentieth century a British mining company working the Agua Fría
mine in Honduras came to the Murra area and began working the underground San
Albino mine under the name San Albino Gold Mines Ltd. This work carried on for more
than two decades. Gold production1 was responsible for 23% of the total exports of the
country in 1912.
 In the early 1950s, Ramón Raudales, a local miner, began exploring and exploiting MMD
areas with the intention of financing the war of the Sandinistas against Somoza tyranny.
He discovered more than 20 mining areas; most of them covered by the FDN holdings.
Raudales set his camp in Mina America where he worked many high-grade veins. There
are no records from his production. As a result of his work there are hundreds of tunnels
in many places in the Murra area.
Fortress Minerals Corp. (Fortress) staked all of the properties during the period 2005-2007. In
2009 Fortress transferred title to all of the properties to Fortress de Nicaragua S.A. (FDN).
Sirocco Advisory Services Ltd. (Sirocco) and JAT Metconsult Ltd. (JAT), jointly, obtained the
mineral rights to 16 properties in Nicaragua from FDN.
Fortress completed detailed work in the Murra area. In total, Fortress had collected 3,659 rock
samples, 4,243 soil samples, and 1,017 stream sediment samples over the properties. The stream
sediment samples resulted in 32 anomalous samples in the Murra area, with values over 6,000ppb
Au. Follow-up soil sampling was conducted over five different areas including, Manto de la
Corona, Mina America, Jalapena, Los Angeles, and El Carmen. Maximum gold values of over
1,400ppb Au were reported and 56 samples showed greater than 100ppb Au. After the soil
sampling was completed, detailed trenching and prospecting was carried out at six different sites
in the Murra area. The rock samples are from one of, outcrop, trench, or underground tunnel.
Maximum values are greater than 127,000ppb Au and 168 samples showed greater than 1,000ppb
Au.
The CWN area includes four properties, La Raya II, La Armenia, La Leonesa, and Paso Real. In
total, Fortress had collected 142 rock samples, 229 soil samples, and 21 stream sediment samples
over the properties. The first three properties are thought to cover the same fault systems that host
the La India mine. The host rocks are ryholite and basaltic andesite. The altered areas surrounds
Santa Barbara hill on the NW sector of the application and covers completely the hills of La
Enramada, Armenia and a flat area called La Milpa. The alteration on this four spots corresponds
1
The Cambridge History of Latin America-Leslie Bethell
Page 21 of 67
3 May 2011
to a low-sulfidation model; quartz-adularia-sericite, plenty of boiling fan structures with skeletons
filled of oxides out of pyrite.
The CEN area includes four properties, Muhan, Las Parras, La Francia Norte, and La Argentina.
In total, Fortress had collected 740 rock samples, 1196 soil samples, and 475 stream sediment
samples over the properties. The Muhan Property covers the La Campana rhyodacite stock, which
is highly altered, argillization and silicified.
Production has not taken place on any of the properties.
Page 22 of 67
3 May 2011
9.0
Geological Setting
The geomorphology of Nicaragua consists of three major terrains. A northwest striking graben,
30km to 40km wide, parallels the Pacific coastline along the western margin of the country and is
known as the Nicaragua Depression, Figure 9-1. This graben hosts up to 16 active or recently
active volcanoes and is the site of thick Quaternary to Recent volcanic deposits. To the
southwest, between the graben and the Pacific coast, a 10km to 20km wide belt of Tertiary,
Mesozoic and Palaeozoic rocks are preserved. To the northeast of the graben, Tertiary, Mesozoic
and Palaeozoic “basement” is overlain by a major unit of Tertiary volcanic rocks, the Coyol
(Miocene-Pliocene) and Matagalpa (Oligocene-Miocene) Groups. The Coyol Group hosts the
known vein gold deposits in Nicaragua, including those at El Limón and La India (Gareau, 2004).
In the Murra area the Manto De La Corona (MDLC) prospect is the most advanced target and is
within “basement” lithologies. It is inferred that the area represents an elongated anticline,
trending to the northwest. Intrusive aplite, felsic sills and dykes are common in the core of the
anticline. Breccias are in direct contact with the intrusives, and occur in an echelon manner
approximately every 30m, parallel to foliation in the geological profile. The host of the
mineralization is green slate, from sedimentary rock, while on the other side of the creek it is
green phyllite from volcanic rock. Alteration includes minerals like talc, serpentinization
chlorite, and mica with quartz. There is also “metamorphic leaching” with carbon, graphite, and
quartz.
Free gold mineralization is visible with oxides and quartz in the breccia, in broken and distorted
mesothermal quartz veins, where the gold is visible in vugs with oxides, and in the latest quartz
strings. Sulfides include arsenopyrite, pyrite, some galena, and rarely sphalerite.
Mina America 1 and 2 concessions are where the most extensive and significant old workings
have been located. There are more than 200 tunnels and excavations done mostly by Ramon
Raudales for the Sandinistas army.
The CWN properties straddle the northern end of the Nicaragua Depression. The properties
display alteration indicating a low-sulphidation epithermal model with quartz-adularia-sericite,
and boiling fan structures with skeletons filled of oxides out of pyrite.
The CEN properties are within the major Tertiary volcanic belt in the central part of the country.
The properties cover the La Campana rhyodacite stock, which is highly altered, argillization and
silicified.
Page 23 of 67
3 May 2011
Figure 9-1
Regional Geology
Page 24 of 67
3 May 2011
10.0 Deposit Types
The Murra area occurrences can be classified as a mesothermal lode-gold deposit (Hodgson,
1993).
“Mesothermal gold deposits are mostly quartz-vein-related, gold only deposits with
associated carbonatized wall rocks. They occur in low to medium-grade metamorphic
terranes of all ages, but only in those that have been intruded by granitoid batholiths.
The deposits are characterized by a high gold/silver ratio, great vertical continuity
with little vertical zonation, and a broadly syn-tectonic time of emplacement. They
are commonly associated with pyrite, arsenopyrite, tourmaline and molybdenite.
Mineralization may occur in any rock type and ranges in form from veins, to veinlet
systems, to disseminated replacement zones. Most mineralized zones are hosted by
and always related to steeply dipping reverse- or oblique-slip brittle-fracture to
ductile-shear zones. In mechanically anisotropic host-rock sequences, the shear zones
typically are controlled by pre-existing anisotrophies like volcanic flow contacts,
dykes and early veins. Shear zone dilation is commonly the result of interference
between intersecting sets of shear zones and is part of bulk inhomogeneous flattening
in the seismogenic regime of the crust where fluid pressure varied cyclically between
sub-lithostatic and supra-lithostatic. At the regional scale, the deposits occur in prograding arc-trench complexes in association with major transcrustal fault zones,
linear belts of fluviatile to shallow-marine sedimentary rocks, and small felsic alkali
and trondhjemitic intrusions, a co-spatial assemblage of structures and rocks that
developed after the main period of accretions-related contractional deformation, but
before much of the metamorphism and penetrative fabric. Ore fluids are CO2 rich
and have been variously attributed to magmas, metamorphic devolatilization of
supracrustal rocks and mantle degassing; most current opinion favours
devolatilization of subcreted volcanic and sedimentary rocks, with modification by
interaction with the crustal column between the sites of fluid generation and ore
deposition”
The exploration target on the Murra project is orogenic lode gold deposits also known
as mesothermal vein deposits. Numerous examples of this type of deposit are known
throughout the world including the Campbell Red Lake deposits in Ontario and the
Bralorne deposit in British Columbia. To date, exploration studies have demonstrated
that the Murra area occurrences have all of the attributes of the orogenic vein gold
deposit including, but not limited to association with major structural break, quartzcarbonate vein association, low-sulphide assemblage with pyrite, chloritic and
sericitically altered wall rocks.
MMTS believes the deposit type and model is appropriate for the Murra area gold occurrence.
In the CWN and CEN areas, the mineralization appears to represent a low-sulphidation
epithermal system.
Page 25 of 67
3 May 2011
11.0 Mineralization
Fortress explored the Murra area for three years and developed the following guidelines from
their work.
The general geological characteristics of this system include:
 Slate-hosted free gold mineralization in mesothermal quartz veins,
 Strong gold-arsenic positive correlation,
 Ductile-brittle shear zones with quartz veining, breccias, saddle reef and ribbon
structures,
 Alteration includes quartz, talc, chlorite, organic matter, and sericite,
 Mineralization includes arsenopyrite, pyrite and free gold,
 Mesothermal veins with free gold have a space-time relationship with frequent sills and
dykes composed of granodiorite, quartz diorite and granite.
The Mina America area is set along a north/south trending horst structure. The mineralization
zone is interpreted to be three kilometers long and 300m wide. This mineralization is controlled
by many faults hosting shears and tectonic breccias. There are many veins and some stockworks
with coarse free gold in quartz strings. Sulphides include arsenopyrite, galena and sphalerite.
There are more than 100 tunnels and excavations done by Ramón Raudales mining operation
since the early 1950s for the Sandinistas Guerrillas.
General geological characteristics of this area include:
 Tectonic control of the mineralization along shear zones, tectonic breccias, fault planes,
and cataclastites,
 Coarse free gold along with Pb-Zn-As (Sb, Cu),
 Mineralization is hosted by greenstone low-grade metamorphism; phyllite, slate and
schist,
 Frequent dykes and sills of aplite and granodiorite intrusions,
 There are two types of quartz: dense milky quartz and translucent white quartz cutting the
former, gold is presented in both types,
 Ribbon and bedded veins are frequent in this system.
On the Los Angeles concession, Fortress defined one soil anomaly (Los Angeles), one stream
sediment anomaly (El Doradito), and a target area (El Olingo). The soil anomaly is an area about
three square kilometers with values ranging from 8 to 478ppb Au. It is set in between two large
fault systems going 120° and north-south respectively. Dykes and sills of granodiorite with
disseminated Pb-Zn mineralization with some visible gold in the pan are present. The host rock
is greenschist which is often sheared to give breccias and cataclastites.
Page 26 of 67
3 May 2011
The gold-bearing system in the Murra area appears to be a gold only system with very little base
metal or silver association. Table 11.1 shows univariate statistics for gold, copper and silver. As
shown, except for gold, there is very little contribution from other metals.
Table 11-1
Area
Sample Statistics, Rock Samples
Element
Number
Minimum
Maximum
Mean
St. Dev.
C.V.1
Au (ppb)
70
3.0
759
29.96
113.71
3.80
Cu (ppm)
48
2.0
145
32.38
38.97
1.20
Ag (ppm)
40
0.2
0.8
0.24
0.12
0.49
Au (ppb)
729
10.0
127,600
817.55
6831.76
8.36
Mina America
Cu (ppm)
684
3.0
286.0
45.14
27.26
0.60
Ag (ppm)
684
0.02
100.0
1.35
7.25
5.37
Au (ppb)
2268
2.0
55,500
341.36
1923.62
5.64
Jalapena
Cu (ppm)
1039
3.0
364.0
47.39
26.82
0.57
Ag (ppm)
1039
0.2
18.6
0.40
1.14
2.85
Au (ppb)
420
3.0
112,100
642.46
5957.22
9.27
Los Angeles
Cu (ppm)
137
2.0
147.0
39.34
26.13
0.66
Ag (ppm)
137
0.2
1.3
0.23
0.12
0.52
Au (ppb)
159
3.0
5,770
71.11
488.09
6.86
El Carmen
Cu (ppm)
57
7.0
132.0
36.95
28.34
0.77
Ag (ppm)
132
1.0
5.0
1.36
0.86
0.63
Note:
1. C.V. = Coefficient of Variation (standard deviation/mean). It should be noted that the high CV values
(>2) indicate a highly skewed distribution of assay values.
MDLC
At this time the continuity and controls and orientation of the mineralization is poorly understood,
so the length, width, and depth of mineralization is unknown.
Several of the prospective areas in the Murra area, MDLC, California, and Bana, are very close to
property boundaries. Depending on the ultimate orientation of the mineralized horizons adjoining
properties may have to be acquired.
Table 11-2 shows how gold is related to copper and silver in the rock samples to date from the
five areas in the Murra area. As shown, there is good correlation between silver and gold at both
MDLC and Mina America. Generally there is poor correlation between copper and gold.
Table 11-2
Correlation Coefficients, Rock Samples
Area
MDLC
Mina America
Jalapena
Los Angeles
El Carmen
Au:Cu
0.06
0.13
0.03
0.13
0.07
Au:Ag
0.73
0.85
0.09
0.18
0.37
At both the CEN and CWN areas, the exploration target is low-sulphidation epithermal gold (see
photo 11-5).
Page 27 of 67
3 May 2011
Photo 11-1
Complex Veining in the Intrusive, MDLC Property
Photo 11-2
Weathered Breccia, MDLC Property
Page 28 of 67
3 May 2011
Photo 11-3
An Outcrop of the Weathered Breccia, MDLC Property
Photo 11-4
Late Quartz Vein, Mina America II Property
Page 29 of 67
3 May 2011
Photo 11-5
Silicified Ryholite, La Armenia Property
Page 30 of 67
3 May 2011
12.0 Exploration
Sirocco and JAT, jointly, have completed a limited due diligence sampling program on the
properties which included the collection of eleven samples from the Murra area and one from the
CWN area. Table 12-1 summarizes the results of the work, which verifies the presence of gold
on the MDLC Property. Cassius has not done any work on the properties other than their initial
due diligence sampling. The author verifies that the Cassius due diligence samples indicate the
presence of gold.
Table 12-1
Verification Sampling
Fortress Au (g/t)
0.130
0.145
1.235
0.581
0.037
0.109
1.230
0.015
0.027
2.524
0.010
4.402
Figure 12-1
Cassius Au (g/t)
0.193
0.307
1.298
0.241
0.056
0.110
0.403
0.031
0.100
0.084
0.021
1.112
Verification Sampling
Page 31 of 67
3 May 2011
Fortress explored using stream sediment sampling, soil sampling, trenching, and sampling of old
underground workings. Preliminary work included stream sediment samples which were used to
define anomalous areas. Table 12-2 lists the samples Fortress collected during the period 2005 to
2007.
Table 12-2
Sample Summary, Fortress Exploration
Area
Rocks
Soil
Stream Sediments
Total
Jalapena
2268
1348
69
3685
Mina America
729
483
20
1232
Los Angeles
420
1482
484
2386
Murra
70
185
256
511
El Carmen
159
745
135
1039
Bana
13
0
54
67
Paso Real
85
229
21
335
La Armenia
33
0
0
33
La Raya II
24
0
0
24
Las Parras
7
0
0
7
Muhan
26
0
0
26
La Argentina
278
1040
366
1684
Other
429
156
109
694
4541
5668
1514
11723
Table 12-3 lists the 32 anomalous samples in the Murra area. In total 1,017 stream sediment
samples have been collected in the area with values over 6,000ppb Au.
Table 12-3
Stream Sediment Samples, Murra Area
Mean Au
(ppb)
1147
X
Y
Los Angeles
Au Range
(ppb)
660-1513
607500
1508000
Area
(km2)
3
Los Manchones
Los Angeles
289-3340
1458
609000
1508000
3
La Luz
Jicaro-Caulatu
Mollejones - Leona
Olingo
Támesis
Wiwili - Támesis
Támesis
Los Angeles
Los Angeles
Los Angeles
Los Angeles
Los Angeles
Los Angeles
Los Angeles
9-36
59 - 136
15 - 680
8 - 202
10 - 1780
8 - 545
9 - 120
19
92
179
57
475
65
38
611000
608000
609000
608000
605000
610000
610000
1507000
1503000
1506000
1512000
1516000
1516000
1518000
4
2
7
5
3
10
8
Támesis
Los Angeles
9 - 989
232
609000
1521000
6
Concepción-Bonetón
La Barra-El Chongo
San Lorenzo
El Diablo
Wiwili
Wiwili
Los Ángeles
Los Ángeles
Los Ángeles
Murra
Murra
Murra
9 - 1202
8 - 884
9 - 2204
8 -16
8 - 601
8 - 111
139
83
305
12
61
21
610000
611500
612000
615000
614000
616000
1523000
1522000
1525000
1513000
1515000
1518000
4
6
9
5
6
9
Prospect
Creek Name
Concession
Cachete
Los
Manchones
La Luz
La Bujona
Mollejones
El Olingo
La Lampara
California
Paredes
Santo
Domingo
Bonetón
La Barra
Doradito
El Diablo
San Jerónimo
Wiwili
Murra
Page 32 of 67
3 May 2011
Murra
Murra
Au Range
(ppb)
8 - 28
8 - 619
Mean Au
(ppb)
12
82
Murra - Jalapeña
8 - 934
251
614000
1526500
6
Murra
El Carmen
El Carmen
Bana
Bana
Murra
Murra
9 - 484
8 - 1487
8 - 5930
8 – 983
9 - 232
15 - 128
12 - 79
87
254
453
120
66
72
26
619000
622000
622500
626000
626000
615000
615000
1527000
1527500
1526000
1527000
1525000
1531000
1534000
6
5
6
7
2
2
6
Quebrada Helada
Murra
40 - 202
121
618000
1535000
5
Quebrada de Oro
La Jalapeña
12 - 788
219
610000
1529500
6
Murra
La Jalapeña
14 - 1212
297
607000
1526000
4
Deagueda
Manhattan
Mina América
La Jalapeña
La Jalapeña
Mina América
26 - 108
11 - 85
30 - 6670
73
36
1690
607500 1527500
606000 1527000
604500 1526500
2
2
1
Prospect
Creek Name
Concession
La Llorona
Arenales
Congoja-Arenales
Arenales
San Lorenzo - San
Pablo
El Rosario
Rosario Congojas
Congojas
Guapinol
Caño de Oro
San Lorenzo
San Pablito
San Lorenzo
Rosario Este
Rosario Oeste
Congojas
Guapinol
Bana
El Dorado
El Mapa
Quebrada
Helada
Las Glorias
Manto de la
Corona
Deagueda
Manhattan
San Cristóbal
X
Y
616000 1521000
615000 1524000
Area
(km2)
9
20
From the stream sediment sampling work five areas were examined in detail, including, Manto de
la Corona, Mina America, Jalapena, Los Angeles, and El Carmen. In total 4,243 soil samples
have been taken in the Murra area. Table 12-4 lists the areas where soil sample grids were
completed.
Table 12-4
Soil Samples, Murra Area
No. of
Samples
185
483
1348
1482
745
Area
MDLC
Mina America
Jalapena
Los Angeles
El Carmen
Max. value
Au (ppb)
48
1415
908
501
204
Number
>100 ppb Au
0
7
24
18
7
After the soil sampling was completed, detailed trenching and prospecting was carried out. In
total 3,659 rock samples have been taken in the Murra area. Table 12-5 lists the rock samples
collected from six different sites in the Murra area. The rock samples are from one of, outcrop,
trench, or underground tunnel.
Table 12-5
Area
MDLC
Mina America
Jalapena
Los Angeles
El Carmen
Bana
Rock Samples, Murra Area
No. of
Samples
70
729
2268
420
159
13
Max. value
Au (ppb)
759
127,600
55,500
112,100
5,770
60
Number
>100 ppb Au
2
89
675
59
7
0
Number
>500 ppb Au
0
45
241
27
5
0
Number
>1000 ppb Au
0
32
112
18
1
0
Page 33 of 67
3 May 2011
It is important to note that the average assay value of the 729 rock samples in the Mina America
area is 818ppb Au, while in the Los Angeles area the average of 420 rock samples is 642ppb Au,
and in the Jalapena area the average of 2,268 samples is 341ppb Au.
FDN also controls mineral properties in two different areas, in western Nicaragua, the CWN
properties and in eastern Nicaragua, the CEN properties.
The CWN area includes four properties, La Raya II, La Armenia, La Leonesa, and Paso Real. In
total, Fortress had collected 142 rock samples, 229 soil samples, and 21 stream sediment samples
over the properties. The first three properties are thought to cover the same fault systems that host
the La India mine. The host rocks are ryholite and basaltic andesite. The altered areas surrounds
Santa Barbara hill on the NW sector of the application and covers completely the hills of La
Enramada, Armenia and a flat area called La Milpa. The alteration on this four spots corresponds
to a low-sulfidation model; quartz-adularia-sericite, plenty of boiling fan structures with skeletons
filled of oxides out of pyrite.
The CEN area includes four properties, Muhan, Las Parras, La Francia Norte, and La Argentina.
In total, Fortress had collected 740 rock samples, 1196 soil samples, and 475 stream sediment
samples over the properties. The Muhan Property covers the La Campana rhyodacite stock, which
is highly altered, argillization and silicified.
MMTS believes the exploration to date confirms the presence of gold across many of the
properties as well as higher-grade specific targets.
Page 34 of 67
3 May 2011
Figure 12-2
Stream Sediment Anomalies, Murra Area
Page 35 of 67
3 May 2011
Figure 12-3
Soil Sample Grid Areas, Murra Area
Page 36 of 67
3 May 2011
Figure 12-4
MDLC Area
Page 37 of 67
3 May 2011
Figure 12-5
MDLC Stream Sediment Samples
Page 38 of 67
3 May 2011
Figure 12-6
MDLC Soil Samples
Page 39 of 67
3 May 2011
Figure 12-7
Deagueda Area, Soil Samples
Page 40 of 67
3 May 2011
Figure 12-8
Mina America Soil Samples
Page 41 of 67
3 May 2011
Figure 12-9
Mina America Rock Samples
Page 42 of 67
3 May 2011
Figure 12-10
La Armenia Geology
Page 43 of 67
3 May 2011
Figure 12-11
Santa Barbara Hill, Rock Samples
Page 44 of 67
3 May 2011
Figure 12-12
La Armenia, Rock Samples
Page 45 of 67
3 May 2011
Photo 12-1
Exploration adit on the MDLC Property
Photo 12-2
Trench 1, MDLC property
Photos 12-2 to 12-4 are from Gabriel Segura.
Page 46 of 67
3 May 2011
Photo 12-3
Photo 12-4
Page 47 of 67
3 May 2011
Photo 12-5
Schist with quartz, Mina America II Property
Photo 12-6
Santa Barbara Property, CWN area
The hill in the photo centre is Santa Barbara as viewed from the south.
Page 48 of 67
3 May 2011
13.0 Drilling
To date, there has been no drilling on any of the properties.
Page 49 of 67
3 May 2011
14.0 Sampling Method and Approach
MMTS has not been involved in any sampling work on any of the FDN properties. Sampling on
many of the properties includes stream sediment, soil, and rock samples, from outcrop, trench,
and underground.
Stream sediment samples were from active drainage basins and included sand to silt sized
material. Soil samples were collected using a hand auger and were typically from one metre
depth. The sample material was from either the B or C horizon. Rock samples include random
outcrop samples, and channel samples from either trench or adits.
Item 12, Exploration, describes the number and type of samples collected on the properties to
date. As well, the sample spacing is shown with the figures in Item 12.
With their rock sampling, Fortress observed that the size of gold in particles on the Murra
property varies from one target to another. Fortress determined that they would use 10kg
samples, with individual rock particle size in the sample no more than 25mm. From their work,
the best sample flow sheet is as follows, including:
 Dry and crush samples to -10mm
 Pulverize in two 5kg batches to -180μm in ring mill
 Recombine, then rotary split into ten 1kg lots.
The due diligence by Cassius included twelve samples from the MDLC Property used to verify
the existence of gold.
Photo 14-1 shows a typical channel sample in one of the adits on the MDLC property.
Photo 14-1 Showing sample channel on the wall of one of the tunnels
Page 50 of 67
3 May 2011
15.0 Sample Preparation, Analyses and Security
Fortress used Columbia Analytical Services (CAS) labs-Honduras (a USA based laboratory
company with ISO/IEC 17025-2005 accreditation), for sample preparation and analyses.
Laboratory procedures included drying and crushing to -10mm, pulverizing to -75µm. Gold was
analyzed using fire assay with an AA finish except for samples with >1g/t which were finished
with gravimetrics. Multi element geochemical testing (22 element) was completed on all
samples.
MMTS believes that sample preparation, security and analytical procedures are acceptable and
followed industry standards.
The original sample work by Fortress used a QA/QC which included standards and blanks. One
of the control sample types was incorporated in each set of 20 samples sent to the laboratory.
Blank Samples
The blank sampling program included inserting a sample of barren rock in each set of twenty
samples. Generally the results show very low values, though there was one sample reported at
99ppb Au. Figure 15-1 shows a plot of the blank samples over time. Overall, the results from the
blank sampling program appear to be acceptable.
Figure 15-1
Blank Samples
Page 51 of 67
3 May 2011
Standard Samples
The standard sampling program included inserting a standard sample in each set of twenty
samples. Three standard samples were used.
Table 15-1
Summary of Standards
Oreas 7 count 71 min 110 max 3000 mean 2121.7 st dev 930.5 CV 0.44 Oreas 51 Oreas 62 46 20 30 3 454 11830 327.4 7539.0 151.2 4719.8 0.46 0.63 The first standard, Oreas 4Pb, was used only twice and both samples show 50ppb Au which is
acceptable. The accepted value is 49ppb Au +/- 1ppb with 95% confidence.
The second standard, Oreas 7Pb, was used 71 times. The accepted value is 2.77ppm Au +/- 2ppm
with 95% confidence. As shown in the Figure 15-2, most of the results appear to fall very near
the accepted value, but it is apparent that there has been some mixing of results.
Figure 15-2
Standard Oreas 7Pb
The third standard, Oreas 51P, was used 46 times. The accepted values are 430ppb Au +/- 13ppb
and 0.728% Cu +/- 0.12% with 95% confidence. As shown in the Figure 15-3, most of the results
appear to fall very near the accepted value, but it is apparent that there has been some mixing of
results.
Page 52 of 67
3 May 2011
Figure 15-3
Standard Oreas 51P
The fourth standard, Oreas 62Pb, was used 20 times. The accepted values are 11.33ppm Au +/17ppm and 21.5ppm Ag +/- 0.5ppm with 95% confidence. As shown in the Figure 15-4, most of
the results appear to fall very near the accepted value, but it is apparent that there has been some
mixing of results.
Figure 15-4
Standard Oreas 62Pb
It is recommended that the database be examined with care to verify that the standard samples
have been identified properly.
Cassius has not collected any samples from the properties other than their initial due diligence
samples.
Page 53 of 67
3 May 2011
16.0 Data Verification
MMTS has completed the following verification efforts on the MDLC Property, including:
 A site visit to three of the properties, 7, 8, and 9 December 2010,
 Examination of numerous outcrops, trenches, adits and shafts in and around the property,
 Analyzing assay data.
MMTS did not do any verification sampling because Cassius completed their own due
diligence/verification sampling in September 2010 (as reported in Item 12, Exploration).
The site visit included walking to the Manto De La Corona area, 8 December, as well as a tour of
the Mina America area, 9 December. Several of the adits and shafts were visited to examine the
rock types and to see how and where the samples were collected. The author believes that the
mapping and sample collection was done in a professional manner.
In the CWN area a day was spent on the La Armenia property, 7 December, looking at the Cerro
Santa Barbara and Cerro Armenia areas.
The Fortress sample database carries 11,703 samples from exploration work conducted between
2005 and 2007. The database includes the following information:
 sample number, and date
 property
 sample location, x, y, z
 for soil samples, soil horizon
 for stream sediment samples, creek name
 for rock samples, outcrop number, tunnel number, type of sample (chip or channel), rock
type
 sample description, soil type, minerals noted
 lab ID (lab report where results are included)
 assay and geochem results
Fortress used blank sample and standards in their quality control program (as reported in Item 15,
Sample Preparation, Analyses and Security).
MMTS did not verify original laboratory reports to the database.
The assay data was reviewed and assessed (reported in Items 14 and 15) and should be considered
reliable.
Page 54 of 67
3 May 2011
17.0 Adjacent Properties
In 2006, Condor Resources plc, a London based company, explored the San Albino mine area,
located next to the Murra properties. Trenching produced the results shown in Table 17-1.
Condor then completed a 1000 meters core drilling program at San Albino and Arras areas, and
the results are shown in Tables 17-2 and 17-3.
Table 17-1
San Albino Trench Data
Trench
SACT024
SACT027
SACT031
SATR045
SATR050
SATR062
Table 17-2
SARC010
Table 17-3
Width (m)
4
1
1.5
1
1
5
Gold (g/t)
6.62
41.8
11.3
4.4
10.2
37.2
San Albino Area, Drillholes Results
597276.26
597306.23
1513801.52
1513773.34
524.69
455.29
1m @ 4.20 g/t Au from 14m
Arras Area, Drillholes Results
No.
Drillhole
East
SARD001
597633.51
1
SARC002
597702.68
2
SARC003
597779.67
3
SARC005
597595.1
4
incl. 1m @ 42.0 g/t Au from 9m
SARC013
597548.87
5
SARC013
597548.87
6
SARC014
597581.28
7
SARC014
597581.31
8
SARC015
597593.37
9
SARC015
597593.37
10
SARC018
597491
11
SARC019
597572
12
SARC021
597514
13
SARC024
597544
14
North
1513234.46
1513281.41
1513324.85
1513324.35
Elev
589.08
589.17
548.67
552.76
Intersection
4m @ 17.9 g/t Au from 8m,
1513299.89
1513299.89
1513348.94
1513348.92
1513382.98
1513382.98
1513348
1513390
1513390
1513415
564.51
556.51
558.05
536.05
534.15
528.15
600
525
514
506
3m @ 2.89 g/t Au from surface
Tables 17-1, 17-2, and 17-3 are from a NI 43-101 report by Price, 2009. It should be noted that
true thickness of the intercepts listed is not reported. The locations of the San Albino and Murra
properties are shown on Figure 12-2.
MMTS did not visit the San Albino Property nor have we been unable to verify the information,
listed above, and that the information is not necessarily indicative of the mineralization on the
property that is the subject of the technical report.
Page 55 of 67
3 May 2011
18.0 Mineral Processing and Metallurgical Testing
At this time, there has been no mineral processing or metallurgical test work completed on the
MDLC Property.
Page 56 of 67
3 May 2011
19.0 Mineral Resource and Mineral Reserve Estimates
At this time, there has been no attempt to produce a resource estimate for the MDLC Property.
Page 57 of 67
3 May 2011
20.0 Other Relevant Data and Information
No relevant data or information has knowingly been omitted by the author.
Page 58 of 67
3 May 2011
21.0 Interpretation and Conclusions
The FDN properties cover 137,782.65ha in three main areas of Nicaragua. In the north, the
Murra property consists of eight contiguous properties totaling 37,050.06ha, in the west there are
five properties totaling 62,769.59ha, while in the east there are four properties totaling
37,963.00ha.
More than 200 historic underground adits and shafts, for gold exploration and production, have
been located on the property. In total there have been 3,659 rock samples, 4,243 soil samples,
and 1,018 stream sediment samples collected from the Murra property. Of the rock samples, the
highest value reported is 127.6g/t Au. The 729 rock samples from the Murra area show an
average value of 817g/t Au, with a range in values from 10g/t to 127.6g/t. There are 163 rock
samples with greater than 1g/t Au. At this time the orientation and continuity of the
mineralization is not known.
The preliminary exploration indicates that the mineralizing system is a gold only system. The
deposit model for the occurrence is interpreted as a lode-gold mesothermal.
MDLC is considered a property of merit deserving of further work.
FDN has completed preliminary exploration in both the CWN and CEN areas. In the CWN area,
142 rock samples, 229 soil samples, and 21 stream sediment samples were collected over the
properties. Individual rock samples from the Cerro Santa Barbara area have gold values up
8,030ppb, with three other samples reporting between 1,200ppb and 6,070ppb Au. In the Cerro
Armenia area a single rock sample showed 2,430ppb Au. The alteration corresponds to a lowsulphidation model; quartz-adularia-sericite, with boiling fan structures with skeletons filled of
oxides out of pyrite. The Paso Real property in the northern part of the CWN area covers a stock
of subvolcanic porphyrytic rocks of granodioritic composition. The argillized stock is located
along La India fault system going NW. It has stringers with quartz and oxides out of sulfides. The
rock samples from the stock range from 11ppb Au to 804 ppb Au.
In the CEN area, FDN had collected 740 rock samples, 1196 soil samples, and 475 stream
sediment samples over the properties. Rock samples from the La Argentina property show values
up to 990ppb Au.
Exploration work to date has located numerous gold rich targets that should be further explored.
To date, the exploration has not determined the orientation and continuity of the mineralization.
Page 59 of 67
3 May 2011
22.0 Recommendations
More detailed exploration is recommended for the MDLC property, including:
 geological mapping, the importance of structural-geological control of the mineralization
has been observed and needs to be better understood,
 further trenching will be necessary because of limited outcrop,
 ground geophysics should include a ground mag survey as well as IP surveys,
 drilling will follow-up after the geophysics.
MDLC is a property of merit deserving of further work. The proposed work program is designed
to enhance the understanding of the geological system or systems in the area and develop
geological models and exploration (drilling) targets for subsequent field exploration programs. It
is proposed that a Two Phase exploration program be undertaken as follows. Phase one
exploration program should include geological mapping, ground magnetometer surveys, IP
surveys, geochemical sampling, and trenching is proposed. The Phase One exploration budget is
estimated to be $790,000.
Phase 1
A sequence of activities focused on further defining and tracing the surface or near surface
expression of mineralized structures, identified (in artisanal mine workings and on surface)
during the previous investigations of the property. In addition, exploration should target
enhancing the understanding of the petrography (mineralization and alteration) associated with
these structures.
Additional detailed mapping, trenching, mechanized channel sampling (rock saw) and ground
geophysics should be utilized to trace and sample structures and their associated mineralized
zones, where ground cover occurs, Table 22-1.
 Trenching will open previously obscured bedrock and allow for more detailed mapping
and sampling along the strike of the structural elements,
 Channel sampling will allow the best possible representative sampling of the structurally
controlled mineralized zones and adjacent material to determine the nature and extent of
the mineralization and alteration into the host rock,
 Ground geophysics, particularly Ground Magnetometer and IP surveys to help map the
geology and trace existing mineralized structures and lineaments along strike beneath
cover and identify new previously covered structures and/or mineralized zones.
The proposed work should begin in the area around MDLC with the intention of defining drill
targets for Phase 2. Note that Phase 2 is contingent on positive results from Phase 1.
Phase 2
Drill program should be focused on penetrating the down dip extensions of mineralized structures
identified from the ground geophysics in the vicinity of known gold occurrences and artisanal
mine workings. Details of the drilling program cannot be described at this time, but 1500m is
proposed at a cost of $100/m and $25/m for assay work, Table 22-2.
Page 60 of 67
3 May 2011
Table 22-1
MDLC Exploration Budget –Phase 1
Task
Geological staff
Office staff
Truck rentals
Laborers
Geophysical surveys
Geochemical surveys
Number
3
3
2
4
Contract
5000
Months
12
12
12
12
4
12
Total
Contingency, 25%
Grand Total
Table 22-2
Cost ($)
168,000
72,000
48,000
48,000
100,000
125,000
633,000
157,000
790,000
MDLC Exploration Budget –Phase 2
Task
Geological staff
Office staff
Truck rentals
Laborers
Assay
Drilling, 1500m
Total
Contingency, 25%
Grand Total
Number
3
3
2
4
1500
10
Months
6
6
6
6
Cost ($)
84,000
36,000
24,000
24,000
37,500
150,000
355,500
84,500
440,000
Page 61 of 67
3 May 2011
23.0 References
Price, B.J., (2009): Technical Report, San Albino-Murra Gold Concession, for Golden Reign
Resources Ltd.
Fortress Annual Report, 2007, company document.
Fortress Annual Report, 2006, company document.
Hodgson, C.J., (1993): Mesothermal lode-gold deposits, in Kirkham, R.V., Sinclair, W.D.,
Thorpe, R.I. and Duke, J.M., eds., Mineral Deposit Modeling: GAC Special Paper 40.
Page 62 of 67
3 May 2011
24.0 Date and Signature Page
Herewith, our report entitled “Nicaraguan Gold Properties, Property of Merit Report” dated 3 May
2011.
“Signed and sealed”
Signature of Robert J. Morris
Dated the 3rd day of May 2011
M.Sc, P.Geo.
Moose Mountain Technical Services
Principal Geologist
Page 63 of 67
3 May 2011
I, Robert J. Morris, M.Sc., P.Geo., do hereby certify that:
1. I am a Principal of Moose Mountain Technical Services, 6243 Kubinec Road, Fernie BC
V0B 1M1.
2. I graduated with a B.Sc. from the University of British Columbia in 1973.
3. I graduated with a M.Sc. from Queen’s University in 1978.
4. I am a member of the Association of Professional Engineers and Geoscientists of B.C.
(#18301).
5. I have worked as a geologist for a total of thirty-seven years since my graduation from
university.
6. My past experience with gold exploration and mining includes work in the Bralorne area,
China, Argentina, Colombia, Nicaragua, Costa Rica, Nicaragua and Northern
Saskatchewan. My experience ranges from regional exploration through to detailed
property evaluations and pre-feasibility studies.
7. I have read the definition of “qualified person” set out in NI 43-101 and certify that by
reason of my education, affiliation with a professional association and past relevant work
experience, I fulfill the requirements to be a “qualified person” as defined in National
Policy 43-101.5.
8. I am responsible for the entire technical report titled “Nicaraguan Gold Properties,
Property of Merit Report”, dated 3 May 2011.
9. I completed a site visit of the Manto De La Corona Property 8 and 9 December 2010. I
have had no prior involvement with the property.
10. As of the date of this certificate, to the best of my knowledge, information and belief, the
technical report contains all scientific and technical information that is required to be
disclosed to make the technical report not misleading.
11. I am independent of the issuer applying all of the tests in section 1.4 of National
Instrument 43-101, and work as a consultant to the exploration and mining industry.
12. I have read NI 43-101 and Form 43-101F1, and the Technical Report has been prepared
in compliance with that instrument and form.
Date this 3rd day of May 2011,
____________________________________
Robert J. Morris, M.Sc., P.Geo.
Page 64 of 67
3 May 2011
CONSENT of AUTHOR
TO:
Commission des Valeurs Mobilieres du Quebec
Ontario Securities Commission
Manitoba Securities Commission
Saskatchewan Financial Services Commission – Securities Division
Alberta Securities Commission
British Columbia Securities Commission
I, Robert J. Morris, M.Sc., P.Geo., do hereby consent to the public filing of the Technical Report
titled “Nicaraguan Gold Properties, Property of Merit Report” dated 3 May 2011 (the “Technical
Report”).
Dated this 3rd Day of May 2011,
____________________________________
Robert J. Morris, M.Sc., P.Geo.
Signature of Qualified Person
Page 65 of 67
3 May 2011
25.0 Additional Requirements for Technical Reports on
Development Properties and Production Properties
No further technical information available.
Page 66 of 67
3 May 2011
26.0 Illustrations
All drawings are included with their relevant sections within the report.
Page 67 of 67

1.0 nicaraguan gold properties property of merit report

Transcripción

Documentos relacionados

KALKBERGSTADION BAD SEGEBERG, DE

Register to the Papers of John Victor Murra