independent geological report on the epithermal … · 1. title page independent geological report...

1. Title Page

INDEPENDENT GEOLOGICAL REPORT ON THE

EPITHERMAL GOLD-SILVER RESOURCE

AT KAY TANDA PROSPECT AREA,

SOUTHERN LUZON,

PHILIPPINES

FOR

MINDORO RESOURCES LIMITED

SUITE 104, 17707 - 105 AVENUE,

EDMONTON, ALBERTA T5S 1T1

CANADA

12th

February, 2008

B. D. ROHRLACH PHD M.AUSIMM AND D. C. FREDERICKSEN MSC M.AUSIMM

BRUCE DAVID ROHRLACH DEAN COLIN FREDERICKSEN

21 WHALLEY DRIVE, WHEELERS HILL RAVENSGATE MINERALS INDUSTRY CONSULTANTS

VIC 3150 AUSTRALIA PERTH, W.A.

INDEPENDENT GEOLOGICAL REPORT ON THE AU-AG RESOURCE AT KAY TANDA PROSPECT AREA,

SOUTHERN LUZON, PHILIPPINES

B.D.ROHRLACH PAGE 2

2. TABLE OF CONTENTS

PAGE

2. TABLE OF CONTENTS ......................................................................................................... 2

3. EXECUTIVE SUMMARY ................................................................................................. 11

4. INTRODUCTION ..................................................................................................................... 17

5. RELIANCE ON OTHER EXPERTS .................................................................................. 18

6. PROPERTY DESCRIPTION AND LOCATION ............................................................. 19

6.1 Location ................................................................................................................................. 19

6.2 Property Description ............................................................................................................. 21

6.2.1 Tenement Type - MPSA ........................................................................................ 24

7. ACCESS, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND

PHYSIOGRAPHY .................................................................................................................... 27

7.1 Access .................................................................................................................................... 27

7.2 Climate ................................................................................................................................... 27

7.3 Local Resources and Infrastructure ....................................................................................... 28

7.4 Physiography .......................................................................................................................... 28

8. HISTORY .................................................................................................................................... 29

8.1 Spanish Era ........................................................................................................................... 29

8.2 Mines and Geosciences Bureau ............................................................................................. 29

8.3 Western Mining Corporation.................................................................................................. 29

8.4 Chase Resources - BHP.......................................................................................................... 30

8.5 Egerton Gold NL ................................................................................................................... 31

8.6 Billiton .................................................................................................................................... 32

8.7 Mindoro Resources ................................................................................................................ 32

9. GEOLOGICAL SETTING .................................................................................................. .. 33

9.1 Regional Geology .................................................................................................................. 33

9.1.1 Compressional Tectonics (Middle to Upper Miocene) ......................................... 33

9.1.2 Extensional Tectonics (Pliocene to Pleistocene) .................................................. 37

9.2 Local Geology of the Archangel Project Area ....................................................................... 41

9.3 Lithostratigraphy .................................................................................................................... 43

9.3.1 San Juan Formation - (Oligocene) ....................................................................... 43

9.3.2 San Juan Batholith - (Early Miocene) ................................................................... 43

9.3.3 Post San Juan dacite Dykes - (early Middle Mioocene) ....................................... 44

9.3.4 Talahib Volcanic Sequence - (Middle Miocene) .................................................. 44

9.3.5 Balibago Diorite Complex - (Middle Miocene?) .................................................. 45

9.3.6 Dagatan Wacke - (Middle Miocene) .................................................................... 47

9.3.7 Calatagan Formation - (Late Miocene to Early Pliocene) ................................... 47

9.3.8 Dacite Porphyry Intrusions - (Pliocene?) ............................................................ 49

9.3.9 Balibago Andesite - (Pliocene) ............................................................................. 50

9.3.10 Pinamucan Formation - (Pliocene) ..................................................................... 51

9.3.11 Taysan Tuff - (Pleistocene) .................................................................................. 52

9.3.12 Reefal Limestone - (Pleistocene) ....................................................................... 52



B.D.ROHRLACH PAGE 3

9.4 Geology of Prospect Area....................................................................................................... 53

9.4.1 Surface and Cross-section Geology ..................................................................... 53

9.4.2 Surface Alteration ................................................................................................. 56

9.4.3 Structures ............................................................................................................. 57

10. DEPOSIT TYPES...................................................................................................................... 60

11. MINERALIZATION ................................................................................................................ 63

11.1 Kay Tanda - Pulang Lupa ................................................................................................... 64

11.2 Paragenetic Stages of the Kay Tanda Deposit ................................................................... 66

11.2.1 Stage 1a .............................................................................................................. 67

11.2.2 Stage 1b .............................................................................................................. 69

11.2.3 Stage 2 (1st Stage of Epithermal Event) ............................................................ 72

11.2.4 Stage 3a (2nd Stage of Epithermal Event) ........................................................... 72

11.2.5 Stage 3b (2nd Stage of Epithermal Event) ........................................................... 74

11.2.6 Stage 4a (3rd Stage of Epithermal Event) ........................................................... 81

11.2.7 Stage 4b (3rd Stage of Epithermal Event) ........................................................... 84

11.2.8 Stage 5 (3rd Stage of Epithermal Event) ........................................................... 90

11.3 Grade Distribution Amongst the Veins ............................................................................... 93

11.4 Alteration on Cross-section ................................................................................................ 95

11.5 Style of Mineralization and Model for Kay Tanda and Pulang Lupa ................................ 98

11.6 Ahit-Balibago .................................................................................................................... 108

11.7 South and North Lumbangan ............................................................................................ 108

11.8 Marita .............................................................................................................................. 108

11.9 Bootin ............................................................................................................................... 111

12. EXPLORATION ..................................................................................................................... 112

12.1 Previous Exploration Work by Other Companies .............................................................. 112

12.2 MRL Exploration (2003) .................................................................................................... 112

12.2.1 Data Assessment ............................................................................................... 112

12.2.2 Reconnaissance Investigations ......................................................................... 112

12.2.3 Assessment of Chase Drilling ........................................................................... 113

12.2.4 Geological Mapping ......................................................................................... 113

12.3 MRL Exploration (2004) .................................................................................................... 113

12.3.1 Gridding ........................................................................................................... 113

12.3.2 Geophysical Surveys - (IP and Magnetics) ...................................................... 113

12.3.3 Trenching ......................................................................................................... 114

12.4 MRL Exploration (2005) .................................................................................................... 115

12.4.1 Geophysical Surveys - (IP and Magnetics) ...................................................... 115

12.4.2 Initial Metallurgical Testing ............................................................................. 117

12.4.3 Soil Sampling .................................................................................................... 118

12.5 MRL Exploration (2006) .................................................................................................... 120

12.5.1 Geophysical Surveys - (IP) ............................................................................... 120

12.5.2 Pima Surveys .................................................................................................... 120

13. DRILLING ................................................................................................................................ 124

13.1 Drilling Contractors and Drilling Statistics ...................................................................... 125

13.2 Drilling Equipment ............................................................................................................ 126

13.3 Production Rates ............................................................................................................... 127



B.D.ROHRLACH PAGE 4

13.4 Casing in Drillholes and Drillhole Collars ....................................................................... 127

13.5 Water in Drillholes ............................................................................................................ 128

13.6 Drillhole Surveys ............................................................................................................... 129

13.7 Orientation of Drillcores ................................................................................................... 129

13.8 Surveying of Collar Positions ............................................................................................ 130

13.9 Summary Results of Drilling .............................................................................................. 132

14. SAMPLING METHOD AND APPROACH ..................................................................... 135

14.1 Float, Channel and Trench Samples .................................................................................. 135

14.2 Soil Geochemical Samples ................................................................................................. 137

14.3 Petrographic Samples ........................................................................................................ 138

14.4 Pima Samples .................................................................................................................... 138

14.4.1 Pima on Surface Samples ................................................................................. 138

14.4.2 Pima on Kay Tanda Drill Samples ................................................................... 139

14.5 Drill Sampling Methods .................................................................................................... 139

14.5.1 Reverse Circulation Percussion Drilling .......................................................... 139

14.5.2 Diamond Drilling ............................................................................................. 141

14.6 Location of Drill Samples and Density ............................................................................. 142

14.7 Controls on Selected Drill Sampling Width ....................................................................... 142

14.8 Geological Logging ........................................................................................................... 142

14.9 Calculation of Drill Sample Recovery Data ...................................................................... 144

14.9.1 Percussion Drilling .......................................................................................... 144

14.9.2 Diamond Drilling ............................................................................................. 145

15. SAMPLING PREPARATION, ANALYSES AND SECURITY.................................. 147

15.1 Sampling, Splitting, Reduction, Packaging and Labeling .................................................. 147

15.1.1 RC Percussion Drilling ................................................................................... 148

15.1.2 Diamond Drilling ............................................................................................ 148

15.2 Procedures Employed to Ensure Sample Integrity ........................................................... 148

15.3 Use of MRL Employees in Sampling Procedures .............................................................. 149

15.4 Sample Security and Transport .......................................................................................... 149

15.4.1 RC Percussion Drilling ................................................................................... 150

15.4.2 Diamond Drilling ............................................................................................ 151

15.5 Analytical Laboratories .................................................................................................... 151

15.6 Qa-Qc Procedures Employed ............................................................................................ 151

15.6.1 Sample Preparation in Laboratory .................................................................. 153

15.6.2 McPhar Analytical Methods and Protocols .................................................... 155

15.6.3 MRL Blanks and Standards ............................................................................. 157

15.6.4 McPhar Blanks and Standards ........................................................................ 162

15.6.5 Results of Repeat Analyses on Sample Solutions ............................................. 168

15.6.6 Results of Duplicate Pulp Assays .................................................................... 169

15.6.7 Results of Duplicate Coarse Rejects ................................................................ 171

15.6.8 Results of Field Duplicate Samples ................................................................. 173

15.6.9 Results of Independent Laboratory Checks ..................................................... 178

15.6.10 Results of Twin Drillholes .............................................................................. 179

15.7 Screen Fire Assays ............................................................................................................. 181

15.8 Measurement of Specific Gravity ....................................................................................... 183



B.D.ROHRLACH PAGE 5

16. DATA VERIFICATION........................................................................................................ 187

16.1 Assay Database Validation ................................................................................................ 187

16.2 McPhar Qa/Qc Duplicate Validation ................................................................................ 187

16.3 Validation of Downhole Survey Data ................................................................................ 187

16.4 Validation of Cross-section Lithology from Database ...................................................... 187

16.5 Independent Surface Sampling ......................................................................................... 187

16.6 Independent Sampling of Drillcore and RC Samples ........................................................ 188

16.7 Independent Assessment of Specific Gravity Determinations ............................................ 189

16.8 Validation of Specific Gravity Data from McPhar Data Sheets to MRL Database ........... 189

16.9 Validation of Procedures Employed for Calculation of Sample Recoveries ..................... 189

16.10 Validate Drill Collar Positions Using GPS ...................................................................... 189

16.11 Validation of Surface Topography Using GPS.................................................................. 191

16.12 Sighting of Relevant Documents Related to Tenure ......................................................... 191

16.12.1 MPSA 177-02-IV ........................................................................................... 191

16.12.2 MPSA 176-2002-IV ....................................................................................... 191

16.12.3 Other Exploration Permits ............................................................................ 191

16.13 Sighting of Drill Collars, Drillcore and RC Samples ...................................................... 192

16.14 Validation of Exploration Activities ................................................................................. 193

17. ADJACENT PROPERTIES ................................................................................................. 193

17.1 Calo Exploration Permit and Calo Prospect ..................................................................... 193

17.2 El Paso Exploration Permit and El Paso Prospect ........................................................... 195

17.3 Talahib Exploration Permit Application and Talahib Prospect ........................................ 196

17.4 Lobo MPSA 176-02-IV and the SW Breccia Mineral Resource ........................................ 196

18. MINERAL PROCESSING AND METALLURGICAL TESTING............................ 197

18.1 Metallurgical Test Work ................................................................................................... 197

18.1.1 2004 Metallurgical Testwork .......................................................................... 197



19. MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ...................... 202

Table of Contents on Page 205 - Ravensgate Report .................................................................. 205

20. OTHER RELEVANT DATA AND INFORMATION ................................................... 266

21. INTERPRETATION AND CONCLUSIONS .................................................................. 266

21.1 Regional ............................................................................................................................. 266

21.2 Mineralization ................................................................................................................... 268

21.3 Resource Calculations ........................................................................................................ 270

21.4 Areas of Potential ............................................................................................................... 270

22. RECOMMENDATIONS ...................................................................................................... 273

23. REFERENCES ........................................................................................................................ 275

24. DATE AND SIGNATURES.................................................................................................. 277

Dr Bruce D. Rohrlach

Mr Dean C. Fredericksen

25. Additional Requirements for Technical Reports on Development Properties and

Production Properties ............................................................................................................ 281

26. ILLUSTRATIONS .................................................................................................................. 281



B.D.ROHRLACH PAGE 6

TABLES

Table 1. Properties in the southern Batangas mineral district in which Mindoro has an interest ........... 22

Table 2. Monthly rainfall for the Laiya region near the Batangas Project area ....................................... 27

Table 3. Vein paragenesis in the Kay Tanda and Pulang Lupa areas ...................................................... 66

Table 4. Au and Ag intersections in trenches at Pulang Lupa and North Lumbangan ......................... 114

Table 5. IP Lines completed in 2006 .................................................................................................... 120

Table 6. Drilling contractors and drill-holes ......................................................................................... 125

Table 7. Core size, daily drill production and number of samples analysed ......................................... 125

Table 8. Intervals of wet sample from the RC drilling program .......................................................... 129

Table 9. Survey control stations within and around the Kay Tanda prospect ....................................... 131

Table 10. Selection of significant intersections at Kay Tanda and Pulang Lupa .................................... 134

Table 11. Proportion of sampling intervals for diamond drill core ......................................................... 148

Table 12. Summary of analytical methods and detection limits ............................................................. 155

Table 13. Description of Certified Standards submitted by MRL ........................................................... 160

Table 14. Frequency of submission of Certified Standards by MRL ...................................................... 160

Table 15. Sub-division of hole into Batches (1-9) .................................................................................. 161

Table 16. Analytical standards submitted by McPhar during analysis of batches 1-9 ........................... 163

Table 17. Comparison between original and duplicate coarse reject assays (RC samples) .................... 171

Table 18. Comparison between original and duplicate coarse reject assays for core samples ................ 171

Table 19. Au grade distribution at Kay Tanda – Pulang Lupa ................................................................ 181

Table 20. Average specific gravity determinations for rockt ypes at Kay Tanda / Pulang Lupa ............ 184

Table 21. Average specific gravity determinations for alteration types at Kay Tanda / Pulang Lupa .... 184

Table 22. Average specific gravity determination for oxidation types at Kay Tanda / Pulang Lupa ...... 184

Table 23. Spatial spread of samples collected for SG measurement at Kay Tanda / Pulang Lupa ......... 186

Table 24. Independent samples collected from surface of Kay Tanda and Pulang Lupa ....................... 188

Table 25. Independent core and RC samples collected by the author at Kay Tanda and Pulang Lupa .. 188

Table 26. Independent estimation of SG on 7 core samples .................................................................. 189

Table 27. Coordinates of 5 drill-holes independently acquired by GPS ................................................ 190

Table 28. Surveyed collar elevations and elevations defined by Magellan GPS ................................... 191

Table 29. Composite samples ................................................................................................................ 199

Table 30. Gold assays (g/t) of composite samples for metallurgical testing .......................................... 199

Tables 1-18. See List of Tables in Mineral Resource Estimate by Ravensgate (Page 206) .................... 206



B.D.ROHRLACH PAGE 7

ILLUSTRATIONS

Figure 1. Location of the Archangel project in southern Luzon, Philippines ........................................... 20

Figure 2. Mindoro Resources Ltd. Batangas tenement map ..................................................................... 23

Figure 3. Main tectonic elements of southern Luzon ................................................................................ 35

Figure 4. Regional structures and volcanic centers of Batangas, Laguna and Cavite ............................... 37

Figure 5. Regional structures in the Southern Batangas Mineral District ................................................. 40

Figure 6. Regional geology map of the Archangel project area................................................................. 42

Figure 7. Stratigraphic column of the Archangel project area ................................................................... 46

Figure 8. Geological map of the Kay Tanda and Pulang Lupa prospect areas........................................... 53

Figure 9. Cross-section 9900 mN at Kay Tanda ........................................................................................ 55

Figure 10. Alteration map of the Kay Tanda and Pulang Lupa prospect areas............................................ 57

Figure 11. Location of Kay Tanda and Marita near intersection of NE and NW structural trends ........... 58

Figure 12. Composite diagram showing topography, drillholes and IP anomalies at Kay Tanda ............. 58

Figure 13. Color contour image of a Pima spectral parameter .................................................................. 59

Figure 14. Stereonet projection of quartz veins from the surface of the Kay Tanda prospect .................... 60

Figure 15. Schematic diagram of main styles of mineralization in intrusive centers in volcanic arcs ....... 62

Figure 16. Composite image of the southern portion of the Archangel project ......................................... 64

Figure 17. Stereographic projection of Stage 1b chlorite-clay fractures .................................................... 71

Figure 18. Stereographic projection of Stage 3a sericite ± quartz fractures ............................................... 73

Figure 19. Stereographic projection of Stage 3b quartz veins and pyritic stringers .................................... 80

Figure 20. Stereographic projection of Stage 4a carbonate ± basemetal veins .......................................... 82

Figure 21. Stereographic projection of Stage 4b quartz-basemetal veins ................................................... 84

Figure 22. Stereographic projection of Stage 5 anhydrite-gypsum veins .................................................... 90

Figure 23. Summary of 649 overprinting relationships .............................................................................. 92

Figure 24. Distribution of Au grade (log scale) in a number of selected vein types .................................. 93

Figure 25. Distribution of Au grade (linear scale) in a number of selected vein types .............................. 94

Figure 26. Enlarged view of Figure 28 for intervals containing one type of vein and grades < 2g/t Au ... 95

Figure 27. Mineralogy from Pima analyses on cross-section 9800mN ...................................................... 96

Figure 28. Results of Pima analyses on cross-section 9800mN ................................................................. 97

Figure 29. Geology on cross-section 9800mN ............................................................................................ 97

Figure 30. Schematic model of Kay Tanda and Pulang Lupa development over time ............................ 101

Figure 31. Stage 1a-b development of the Kay Tanda prospect (Middle to Upper Miocene) ................... 102

Figure 32. Stage 2 and 3a-b development of the Kay Tanda prospect (Pliocene) ..................................... 103

Figure 33. Stage 4a-b and 5 development of the Kay Tanda prospect (Pliocene) ..................................... 105

Figure 34. Post Stage 5 development of the Kay Tanda prospect ............................................................ 107

Figure 35. Composite image of elements in the Marita prospect area ...................................................... 110

Figure 36. Composite image of elements in the Bootin prospect area ..................................................... 111

Figure 37. Results of Trenching Conducted at Kay Tanda ....................................................................... 114

Figure 38. Results of Trenching Conducted at Pulang Lupa .................................................................... 115

Figure 39. IP chargeability data (msecs) in the Archangel Project area plotted at n=4 ............................ 116

Figure 40. IP resistivity data (ohms) in the Archangel Project area plotted at n=4 .................................. 117

Figure 41. Color-contoured soil gold results at Archangel ....................................................................... 118

Figure 42. Color-contoured soil copper results at Archangel .................................................................. 119

Figure 43. Distribution of PIMA samples collected by MRL on the Archangel property ........................ 121

Figure 44. Interpretation of PIMA samples collected by MRL on the Archangel property ..................... 122

Figure 45. Spatial distribution of drilling at the Kay Tanda and Pulang Lupa epithermal prospects ........ 124

Figure 46. Cross-section 9400mN at Pulang Lupa .................................................................................. 132

Figure 47. Cross-section 9850mN at Kay Tanda ...................................................................................... 133

Figure 48. Distribution of rock-chips collected by MRL on the Archangel property (Cu) ...................... 135

Figure 49. Distribution of rock-chips collected by MRL on the Archangel property (Au) ...................... 136

Figure 50. RC percussion sampling protocol ........................................................................................... 140

Figure 51. MRL core handling, logging and sampling protocol ............................................................. 141



B.D.ROHRLACH PAGE 8

Figure 52. Summary of RC percussion recovery data .............................................................................. 145

Figure 53. Summary of core recovery for the 2006-2007 diamond drilling program .............................. 146

Figure 54. Summary of core recovery for the 2006-2007 diamond drilling program .............................. 146

Figure 55. Flow chart for Qa-Qc system employed by MRL during drilling program ............................ 152

Figure 56. Flowchart of sample preparation process at the McPhar Laboratory ...................................... 154

Figure 57. Procedure for gold fire assay by the McPhar Laboratory ........................................................ 156

Figure 58. Procedure for analysis of Cu, Pb, Zn, Ag and As by the McPhar Laboratory ......................... 157

Figure 59. MRL in-house limestone blank analytical results ................................................................... 158

Figure 60. MRL in-house andesite blank analytical results ..................................................................... 159

Figure 61. MRL external certified gold standards ................................................................................... 161

Figure 62. MRL external certified gold standards ................................................................................... 162

Figure 63. McPhar external certified gold standards ............................................................................... 164

Figure 64. McPhar external certified gold standards ............................................................................... 165

Figure 65. McPhar external certified silver standards .............................................................................. 166

Figure 66. McPhar external certified silver standards .............................................................................. 167

Figure 67. Plot of the internal Au blanks run by the McPhar Laboratory ................................................ 167

Figure 68. Plot of analytical repeats conducted by McPhar Laboratory .................................................. 168

Figure 69. Frequency histogram of lithologies selected for duplicate splits of McPhar pulps ................. 169

Figure 70. Spread of Au grades of samples for analysis of duplicate splits of McPhar pulps ................. 169

Figure 71. Duplicate splits of McPhar pulps ............................................................................................ 170

Figure 72. Plot of duplicate analyses of Au from coarse reject samples of RC chips .............................. 172

Figure 73. Duplicate analyses of coarse reject samples of diamond drill core ........................................ 173

Figure 74. Frequency histogram of lithologies selected for analysis of field duplicate samples ............. 174

Figure 75. Spread of Au grades of samples selected for analysis of field duplicates by McPhar ............ 174

Figure 76. Log-log plot of original versus field duplicate Au grades ...................................................... 175

Figure 77. Analyses for duplicate field samples by the McPhar Laboratory ........................................... 176

Figure 78. Reproducibility of Au analyses in duplicate field split samples of RC chips ......................... 177

Figure 79. Reproducibility of Au analyses in duplicate field split samples of diamond core .................. 177

Figure 80. McPhar gold results plotted against Intertek gold results ....................................................... 178

Figure 81. McPhar gold versus Intertek Au on McPhar pulps (log-log scale) ......................................... 179

Figure 82. Gold analyses in twin holes KTDH-02 and KTRC-16 ........................................................... 180

Figure 83. Gold analyses in twin holes KTDH-01 and KTRC-22 ........................................................... 180

Figure 84. Gold (as g/t) in coarse and fine fractions of screened samples ............................................... 182

Figure 85. Average grade of samples determined by conventional and by screen fire assay .................. 183

Figure 86. Average SG values for lithologies, alteration style and oxidation styles ................................ 185

Figure 87. Flowchart of method used by McPhar for specific gravity determinations ............................ 186

Figure 88. Position of 5 drill collars at Kay Tanda and Pulang Lupa checked independently by GPS .... 190

Figure 89. Au dissolutions for heap leach tests (-12.7mm grind) for oxide and transitional ................... 201

Figure 90. Au dissolutions for heap leach tests (-50mm grind) for oxide and transitional ..................... 202

Figures 1-20. See list of Figures in Mineral Resource Estimate by Ravensgate (Page 207) .................... 207

Figure 91. Location of four annular centres of strong IP chargeability anomalies .................................. 267

Figure 92. Plot of the locations of intersections comprising >1 g/t Au and > 0.8% Zn ........................... 272



B.D.ROHRLACH PAGE 9

PLATES

Plate 1. KTDH-10 (153.3m) Silicified Limestone within the Calatagan Formation.................................. 48

Plate 2. KTDH-19 Hydrothermally Silicified and Brecciated Limestone................................................. 49

Plate 3. KTDH-10 (153.1m) Silicified and Fractured Limestone within the Calatagan Formation........... 49

Plate 4. Outcrop of the Balibago Andesite on the North Portion of the Pulang Lupa Drill Grid ............... 51

Plate 5. Coastal Outcrop of the Taysan Tuff Southwest of Balibago......................................................... 52

Plate 6. View Looking West From Kay Tanda to Pulang Lupa................................................................. 54

Plate 7. Hydrothermal Breccias at the Kay Tanda Prospect. ..................................................................... 56

Plate 8. Stage 1a altered and fluidized hydrothermal breccia from drillhole KTDH-10. .......................... 67

Plate 9. Stage 1a monomict hydrothermal breccia from drill-hole KTDH-04. ......................................... 68

Plate 10. Stage 1a silicified hydrothermal breccia at surface ...................................................................... 68

Plate 11. Chlorite-clay-lined fractures developed in a porphyritic dacite flow ........................................... 69

Plate 12. Chlorite-clay-lined fractures developed in a volcanic lithic tuff .................................................. 70

Plate 13. Chlorite-clay veinlet (Stage 1b) overprinted by Stage 3 branching quartz-pyrite veinlets .......... 70

Plate 14. KTDH-04 (25-30m) Stage 3a sericite-quartz-pyrite fractures .................................................... 73

Plate 15. Surface samples of oxidized limonitic and hematitic fractures .................................................. 74

Plate 16. Surface samples of oxidized limonitic and hematitic fractures .................................................. 74

Plate 17. Surface outcrops of intensely fractured and argillic-altered volcanics ....................................... 75

Plate 18. Surface outcrops of intensely fractured and argillic-altered volcanics ....................................... 75

Plate 19. Surface outcrops of cherty silica in low-angle hydro-fracture veins ........................................... 75

Plate 20. Outcrop displaying bladed calcite textures in a quartz stockwork vein ..................................... 76

Plate 21. Surface outcrop of a high-angle, 10-cm-wide, banded cherty quartz vein ................................ 76

Plate 22. Surface sample of an oxidized and colloform-banded quartz-pyrite vein from Kay Tanda ...... 77

Plate 23. KTDH-04 (15.8m) – Stockwork of pyrite-quartz stringers and quartz-pyrite veins ................. 77

Plate 24. KTDH-04 (15.8m) – Stockwork of pyrite-quartz stringers and quartz-pyrite veins ................. 78

Plate 25. Oxidized Stage 3b chalcedony vein in argillized host rocks ..................................................... 78

Plate 26. Oxidized Stage 3b hydrothermal breccia with clasts of colloform-crustiform silica ................ 79

Plate 27. Fe-Carbonate + basemetal (sphalerite) vein (Stage 4a) ............................................................. 82

Plate 28. Fe-Carbonate with galena and anhydrite veining cross-cutting SCC-altered rocks (Stage 4a) .. 83

Plate 29. Mn-Carbonate (rhodocrosite) veining cross-cutting a diorite in KTDH-10 ............................... 83

Plate 30. Mn-Carbonate (rhodocrosite) veining cross-cutting earlier quartz-basemetal vein (KTDH-10 . 83

Plate 31. Quartz-sphalerite + trace galena veining in chlorite-altered wall-rocks in KTDH-04 .............. 85

Plate 32. Sphalerite and galena replacing the matrix to a hydrothermal breccia ....................................... 85

Plate 33. Sphalerite and galena clots disseminated in a sericite-altered hydrothermal breccia ................. 86

Plate 34. Sphalerite and galena clots disseminated in finely comminuted hydrothermal breccia breccia . 86

Plate 35. KTDH-04 (202.50m) Multiple episodes of overprinting hydrothermal breccia (Stage 4b) ....... 87

Plate 36. KTDH-04 Massive galena vein (Stage 4b) ................................................................................ 87

Plate 37. (KTDH-19) Stage 4b Quartz-galena-sphalerite-pyrite vein ....................................................... 88

Plate 38. (KTDH-04) Stage 4b Quartz-galena vein with native gold ........................................................ 89

Plate 39. KTDH-04 (105.7m) – Stage 4b tuffisite ‘dyke’ with visible native gold (72.21 g/t Au. ........... 89

Plate 40. KTDH-19 (450.20m) Stage 5 gypsum veins with bleached sericite alteration haloes ............... 90

Plate 41. KTDH-10 (385.70m) Stage 5 anhydrite-gypsum-sphalerite-galena veins ................................. 91

Plate 42. GEMCODRIL rig on drill-site KTRC-41. ................................................................................. 126

Plate 43. Track-mounted Gempak 2000 RC percussion rig ...................................................................... 126

Plate 44. United Philippines Drilling Co. Inc.’s Drill Technics DT500P rig on hole KTDH-01 .............. 127

Plate 45. Drill Technic DT500P rig (UPD) on drill hole KTDH-04 ......................................................... 127

Plate 46. Drill collar for hole KTRC-07 .................................................................................................... 128

Plate 47. Drill collar for hole KTRC-49 .................................................................................................... 128

Plate 48. Example of diamond drill-core orientation survey disks conducted by MRL at Kay Tanda .... 130

Plate 49. Marking the spear indentation point on the core within the triple-tube assembly ..................... 130

Plate 50. Laying the oriented core into the core trays .............................................................................. 130

Plate 51. Malabrigo Lighthouse, location of the Bureau of Lands Location Monument (BLLM) .......... 131



B.D.ROHRLACH PAGE 10

Plate 52. Mr Gary Powell establishing sampling protocols for the RC drilling program at Kay Tanda .. 139

Plate 53. Preliminary logging of RC percussion samples (KTRC-41) ..................................................... 143

Plate 54. MRL inhouse limestone blank .................................................................................................. 158

Plate 55. GeoStats Reference G904-6 ...................................................................................................... 161

Plate 56. Example of oxide mineralization that formed part of the oxide composite .............................. 198

Plate 57. Example of transitional mineralization that formed part of the transitional composite ............ 198

APPENDICES

Appendix A. Indicator variogram modelling for Pulang Lupa and Kay Tanda ...................................... 253

Appendix B. Directional experimental semi-variograms .......................................................................... 256

Appendix C. Minesight estimation run files ........................................................................................... 262

Appendix 1. Selected Kay Tanda and Pulang Lupa Geological Cross-Sections ..........................................

Appendix 2. Photographs of drilling operations at Kay Tanda and Pulang Lupa ........................................

Appendix 3. Photographs of Lobo core and RC sample storage facility .....................................................

Appendix 4. Photographs of McPhar Laboratory facilities ..........................................................................

Appendix 5. Certificates of analytical standards submitted by MRL ..........................................................

Appendix 6. QAQC Data Verification and Repeat Sampling of RC [Chase] Samples (S.Carty) ................

Appendix 7. Miscellaneous forms used in drilling program ........................................................................

Appendix 8. Analytical results of Interlab recheck samples ........................................................................

Appendix 9. Analytical results of pulp duplicates .......................................................................................

Appendix 10. Analytical results of coarse reject duplicates .........................................................................

Appendix 11. Analytical results of field duplicates .......................................................................................

Appendix 12. Independent samples collected from surface of Kay Tanda and Pulang Lupa ........................

Appendix 13. Holes, numbers of sample, batch submission numbers, and quantity of MRL standards ........

Appendix 14. Drill-hole collar information ...................................................................................................




3. EXECUTIVE SUMMARY

Property Description Summary

The Archangel project of Mindoro Resources is located ~115 km south of Metro-Manila, in the

Batangas Province of southern Luzon, Philippines. The project is situated along the coastal strip that

extends from Balibago village to Marita village, in the municipality of Lobo. The Archangel property

(MPSA 177-2002-IV) is contained within geographic latitude coordinates 13°36’30”N and 13°39’30”N

and the geographic longitude co-ordinates 121°17’30”E to 121°20’00”E. The project forms part of a

more extensive package of tenements in which Mindoro Resources have an interest. The Archangel

Property comprises an area of 1011.54 hectares and is covered by an approved Mineral Production

Sharing Agreement denominated as MPSA No. 177-2002-IV which is held by Egerton Gold

Philippines Incorporated. By way of an option agreement with Egerton Gold Philippines Incorporated

signed on 23rd October 2000, Mindoro Resources Ltd., through its wholly owned subsidiary, MRL

Gold Philippines Incorporated, acquired the right to earn a 75% interest in the Archangel Property.

The Archangel property contains inferred and indicated mineral resources at Kay Tanda and Pulang

Lupa respectively and which are the subject of this Technical Report.

Regional Setting

The Archangel project lies at the southern end of the West Luzon Arc, its northern portion is also

known as the Bataan Arc which forms the Bataan peninsula west and northwest of Manila. A series of

volcanic centers of Late Miocene to Recent age form part of this northwest-trending volcanic arc along

the western coastline of southern Luzon. The arc is related to eastward subduction of the South China

Sea Plate at the Manila Trench. Two deeply eroded volcanic centers at the southern end of this arc

(Talahib and Lobo volcanic centers) of Late Miocene to Pliocene lie in the southern Batangas district.

A series of NW-trending, arc-parallel faults transect the Batangas and Cavite provinces. These

structures coincide with the main axis of the West Luzon Arc and may have been responsible for

focusing arc magmas during the Middle Miocene. In the mid- to late Miocene the south end of the

West Luzon subduction system was caught in the Mindoro-Panay collision zone, wherein the Palawan

Block of continental Eurasian Plate derivation collided against the west margin of the Philippine

Mobile Belt. The broader Batangas region was associated with waning subduction and magmatism as a

result of this collsion, and an evolution to more highly evolved and explosive magmatism during the

dieing stages of volcanism. During the Pliocene, a period of extensional tectonics affected the Batangas

Peninsula. NE-trending arc-normal structures developed as normal faults across the Cavite, Laguna and

Batangas regions. These late extensional structures focused magmatism along the Macolod Corridor

during the late Pliocene and Pleistiocene, and their early formation enabled shallow hydrothermal

systems to form along the mineralized and NE-trending Archangel corridor.

Local Geology

The Archangel Project area lies on the southeast flank of the deeply dissected Lobo volcanic center.

Altered and mineralized volcanic rocks and associated high-level intrusions of diorite, quartz diorite




and dacite have been mapped along an approximate 6 km length of the Archangel MPSA. An extensive

regional zone of argillic alteration coalesces around a series of discrete centers of mineralization that

are clustered around intrusive centers at Balibago, Pulang Lupa, Kay Tanda, Marita and potentially

elsewhere on the property.

The project area is dominated by the Talahib Volcanic Sequence of Middle to possible Upper Miocene

age, a thick volcanic succession of dacite and andesite flows and tuffs. The lower portion of the Talahib

Volcanic Sequence is dominantly dacitic in composition, and comprises intercalated porphyritic

dacites, dacitic tuffs and reworked volcaniclastic rocks. The upper part of the Talahib Volcanic

Sequence comprises intercalated porphyritic andesites, and andesitic ash tuffs. The Talahib Volcanic

Sequence is locally overlain by bedded tuffaceous and calcareous sedimentary rocks and minor

limestone of the Calatagan Formation and is in turn overlain by young porphyritic andesites, tuffs and

agglomerates. Diorite and quartz diorite bodies of the Balibago Diorite Complex intrude the Talahib

Volcanic Sequence. These intrusions of inferred middle to late Miocene age form two dome-like

intrusive cores that underly the Pulang Lua and Kay Tanda prospects, and are associated with an early

stage of weak porphyry Cu-Au mineralization, hydrothermal breccias, SCC and phyllic alteration. The

Balibago Diorite Complex is intruded by dacitic intrusions which are coeval with a younger, evolving

and multi-stage epithermal system.

History

The earliest recorded mining in the region dates back to the pre-Spanish era when Chinese small-scale

miners worked on the Kay Tanda prospect area and in its immediate vicinity. An account of the early

history of mining and exploration at Balibago and at Lobo are found in reports made by the Spaniards

during their colonization of the country. In 1975 the MGB conducted reconnaissance mapping, mineral

resource evaluation and stream-sediment surveys over the southern Batangas Province, including the

area of the Archangel and Lobo Properties. Several Cu prospects were documented and a -80 mesh

stream sediment survey of the region revealed some Cu-anomalous drainages.

Modern exploration on the Archangel property commenced with Western Mining Corporation (1987-

1989) who conducted reconnaissance mapping, trenching, rock-chip sampling, surface soil sampling

and ground magnetic surveys in the Archangel region prior to drilling seven diamond drill holes at

Pulang Lupa and Kay Tanda.

Chase Resources in a joint venture with BHP Minerals carried out more extensive RC drilling at Kay

Tanda (1995-1998). Thirteen (13) RC drill holes were completed by Chase Resources between January

to March 1998 at Kay Tanda and Pulang Lupa (program meterage of 1544m). The holes intersected

both the upper silicified and argillized zones at Kay Tanda and Pulang Lupa and also underlying zones

of phyllic alteration. Percussion drilling by Chase at Kay Tanda was wide-spaced, with most holes

located over 100 meters apart. The Chase drill holes intersected low-grade gold mineralization that

averaged about 0.7 grams per tonne (g/t) in an area of approximately 600 meters by 400 meters.

Mineralization was open in several directions. The Chase drilling data were used in a preliminary

independent and non-compliant resource study that was conducted in 2003.




In 1997, Egerton Gold NL of Australia entered into a deal with the claim holder, Apical Mining,

however shortly after the mineral interests of Egerton Gold NL were purchased by private Philippine

and Australian interests and amalgamated as Egerton Gold Philippines Incorporated to hold the Lobo

and Archangel Projects. Billiton purchased aeromagnetic survey data from Chase in 1998 after they

had conducted tenement due diligence work on the Archangel property, and interpreted a clusters of

magnetic responses in the nearby region. These anomalies were interpreted as high-level intrusions

with which porphyry copper-gold mineralization could be associated.

Exploration by Mindoro Resources

Exploration activity by Mindoro Resources on the Archangel property commenced in 2003 and

involved assessment of prior exploration activity by WMC and Chase Resources. Early activity

included reconnaissance investigations and geological mapping. In 2004 Mindoro undertook regional

grid establishment, some trenching and regional ground-based geophysical surveys (IP and magnetics).

In 2005 Mindoro continued these geophysical surveys, undertook regional soil sampling and conducted

preliminary metallurgical testing. Activity in 2006 involved further IP surveying and a regional Pima

survey. In 2006 and 2007 Mindoro conducted a major reverse circulation percussion and diamond

drilling program involving 147 reverse circulation percussion holes and 26 diamond drillholes for a

total combined meterage of 23,042.3m. These holes were completed by Mindoro between the 2nd April

2006 and the 12th July 2007. The initial drill holes by MRL were designed to test the extent and

continuity of epithermal mineralization at shallow levels of the Kay Tanda prospect and to test at

deeper levels for the presence of porphyry Au-Cu mineralization. In 2007 Mindoro employed external

consultants to conduct ore resource estimations for Kay Tanda and Pulang Lupa.

Mineralization

Exploration activity has traced mineralization in the broader Kay Tanda region over a distance of ~1.5

kilometers from Pulang Lupa in the WSW through to Kay Tanda where extensive Au-Ag

mineralization has been drill-intersected, and to south and north Lumbangan where surface trenching

has indicated additional mineralization. Mineralization is open to the northeast towards the Marita

prospect and northwest under the younger cover rocks.

Epithermal mineralization at Kay Tanda and Pulang Lupa occurs extensively at the higher elevations of

two erosion-resistant hills that are cored by the Balibago Intrusive Complex. The broad zone of

epithermal mineralization lies within a grossly strata-bound package of volcanic rocks that are arched

over the two connected intrusive centers, one below Pulang Lupa and the other below Kay Tanda. Two

main styles of epithermal mineralization are identified at Kay Tanda and Pulang Lupa.

Early low-sulfidation quartz-Au-Ag mineralization occurs within veins, stockworks and hydrothermal

breccias that define the main mineralized zone at Kay Tanda. They comprise an extensive zone of

brittle quartz stockwork veins of low-temperature chalcedonic and colloform silica, quartz-pyrite veins,

pyrite stringers and fine fractures. These stockworks are surrounded by intensely argillized (quartz-

illite-smectite altered) wall-rocks. Individual veins within the stockwork systems are influenced by

northeast to ENE-trending structures. Quartz-Au-Ag mineralization associated with these stockwork

fracture and vein systems is characterized by a lack of base-metals. The stockwork veins overprint

minor high-level relics of advanced-argillic alteration at surface. In the upper parts of the prospects the




argillic-altered rocks are friable and porous due to oxidation by acidic surface waters. Au grades are

generally low and variable within this early phase of epithermal mineralization (typically 0.2 to 0.8 g/t

Au). Where these argillized rocks are oxidized there tends to be a ~2-fold increase in the Au-grade due

to oxidation enrichment. The lateral extent of quartz-Au-Ag epithermal stockwork mineralization

encountered by drilling is ~500m x 500m at Kay Tanda and ~200m x 300m at Pulang Lupa. The

thickness of the arched zone of stockwork veining within the Talahib Volcanic Sequence is of the order

of 50-100m. Grade continuity is good within this zone at a 0.1 to 0.2 g/t Au cut-off, but at higher grade

cut-offs the continuity decreases as the zones break-up into a series of isolated pods that lie within the

low-grade mineralized envelope.

A second and younger style of mineralization is encountered at deeper levels within the sequence at

Kay Tanda and Pulang Lupa. It comprises narrow vein and breccia lodes comprising quartz-,

carbonate- and anhydrite-basemetal veins (Au-Ag-Zn-Pb-Cu), mineralized hydrothermal breccias and

local tuffisite breccias. Native gold and associated bonanza Au grades occur in association with this

basemetal mineralization event. The basemetal-bearing veins occur deeper in the profile and overprint

the Balibago Intrusive Complex. Bonanza Au grades within these basemetal-bearing lodes peak at

246.76 g/t Au and 12.8% Zn. They are best developed in the Kay Tanda area with the strongest

development of this style of mineralization occurring in the northeast, north and northwest portions of

the Kay Tanda prospect.

Qa-Qc Review of Drilling Data

Analytical standards and blanks submittedby Mindoro and by the McPhar laboratory (Manila) have

indicated suitable precision and accuracy of drill assay data, and this has been further verified by assay

results from Intertek, an independant laboratory (Jakarta). A detailed review and assessment of all

quality assurance and quality control data from the 2006 and 2007 percussion and diamond drilling

programs has indicated that the drill assay data is of sufficient quality to enable a resource estimate to

be made for Kay Tanda and Pulang Lupa deposits.

Ore Resource Calculations

A Mineral Resource estimate has been completed by Dean Fredericksen, Principal Consultant,

Ravensgate Minerals Industry Consultants, for the Pulang Lupa and Kay Tanda deposits of the

Archangel Project for which Mindoro Resources Ltd is the beneficial owner. The Archangel Project

has been the subject of recent exploration and resource drilling by Mindoro Resources Ltd. This

drilling and subsequent data gathering has been of a standard sufficient quantity and quality to enable

compilation of a geological model and Mineral Resource estimate in accordance with the requirements

of National Instrument 43-101F1, Standards of Disclosure for Mineral Projects.

A section of the Pulang Lupa deposit is classified as Indicated Mineral Resource with a further area of

the Pulang Lupa and a significant portion of mineralisation in the Kay Tanda deposit classified as

Inferred Resources. The Mineral Resource estimate has been estimated by Ordinary Kriging inside a

series of primary mineralisation domains interpreted at >0.15 and >0.25 g/t Au for Pulang Lupa and

Kay Tanda respectively. A later mineralisation event is evident in the drilling results and is

characterised by a strong Au-Base metal signature with locally “bonanza” relatively high Au grades.




This mineralisation has not been included in the Mineral Resource estimate at this stage, given that the

geological controls on distribution and continuity of the mineralisation are not yet certain.

The model incorporates an estimation of bulk density based upon the oxidation status of the rock

material as interpreted and modelled by Mindoro Resources Ltd geologists. The major stratigraphic

rock units have also been modelled in three dimensions. A recent topographic survey has provided the

topographic constraints for the resource estimates. The Mineral Resources have been reported above a

cut-off of 0.4 g/t Au for oxide and transitional material and above a cut-off of 0.6 g/t for fresh material.

The estimate is summarised below:

K.Tanda: Inferred Resource – 10,592,000 tonnes @ 0.70 g/t Au, 1.9 g/t Ag (238,000 contained ounces Au).

P.Lupa: Inferred Resource – 1,007,000 tonnes @ 0.73 g/t Au, 15.1 g/t Ag (24,000 contained ounces Au).

Total Inferred Resource – 11,599,000 @ 0.70 g/t Au, 3.0 g/t Ag (262,000 contained ounces Au).

K.Tanda: No indicated resource.

P.Lupa: Indicated Resource – 3,365,000 tonnes @ 0.88 g/t Au, 8.0 g/t Ag (95,000 contained ounces Au).

Total Indicated Resource – 3,365,000 @ 0.88 g/t Au, 8.0 g/t Ag (95,000 contained ounces Au).

The tonnage and contained ounces figures above have been rounded to the nearest thousand and gold grades to the nearest 2nd decimal.

Metallurgy

Carbon-in-leach tests (agitation leaching) at a grind size of P80 (80% passing 75µm) were conducted

on oxide and transitional composite samples from drill cores to provide an indication of the maximum

amount of gold that might be recovered if the ore were finely ground and treated in a conventional

carbon-in-leach plant. This was done to provide a basis for comparing the gold recoveries obtained by

heap leaching. The gold dissolution from the oxide composite was 93.4% with an initial high rate of

gold dissolution from the oxide composite with 86% of the gold extracted in 8 hours. The gold

extraction from the transition composite was also high at 88.6%. Silver dissolutions were high at 83.7%

and 87% from the oxide and transition composites respectively. These recoveries are high, especially

for the sulfide-containing transitional material. Metallurgical results suggest that the Au and Ag occurs

in cracks and fissures and is not bound with sulfides, hence is very accessible to cyanide solution.

Heap leach metallurgical tests were conducted my Metcon Laboratories using a minus 12.7mm crush

size in the first simulated heap leach test. The gold dissolution rate curves indicate that leaching from

the oxide composite was slightly faster than that from the transition composite. In both cases the

majority of the gold was extracted over the first 5 days. A total of 82.4% of the gold was extracted from

the oxide composite and 78.3% from the transitional composite by the end of the run. These gold

extractions are only ~10% lower than the maximum extractions achieved in the agitation leach tests,

which indicates that both mineralization types are highly amenable to heap leaching. Silver recoveries

were 32% and 42% for oxide and transitional mineralization respectively, which is good for silver.

Gold extractions from a second heap leach test using a -50mm crush size were very close to those

achieved at the finer crush size, although the rate curves suggest that with time more gold could be

recovered from the transition composite. Longer leach time were required at the coarser crush size.




Conclusions and Recommendations

Sufficient exploration information has been collected to estimate preliminary mineral resources for the

Pulang Lupa and Kay Tanda deposits. This information has been collected in accordance with sound

industry best practice and is of sufficient quality and quantity to enable the estimation of the Indicated

and Inferred Mineral Resources in accordance with the guidelines of National Instrument 43-101.

The Mineral Resources have been reported above a cut-off of 0.4 g/t Au for oxide and transitional

material and above a cut-off of 0.6 g/t for fresh material. The classification regime is in accordance

with CIMM National Instrument 43-101, Standards of Disclosure for Mineral Projects and also the

JORC Code. The resources were calculated by Ordinary Kriging. The estimates are summarised below.




K.Tanda: Indicated Resource – No indicated resource.




The continuity of mineralisation in the Kay Tanda deposit is not as easily modelled as for the Pulang

Lupa deposit and will require additional drilling to elevate the resource classification from Inferred to

Indicated Resources.

Key recommendations include:

a) Complete close-out drilling as required on the northern and southern margins of the Pulang

Lupa deposit. It is not yet closed off on the southern (local grid) margin.

b) Complete additional drilling in the Kay Tanda deposit which will be targeted to constrain the

limits of the higher grade “shoots” or “pods” of the earlier Au-Ag mineralisation that has been

identified in this study. This drilling will aim to convert a substantial portion of the Kay Tanda

inferred resource to an indicated resource.

c) It is recommended that to understand the controls on the distribution of the Au-Base metal

mineralisation, additional angled diamond drill holes will be needed oriented towards local

grid north-south. The diamond drill core should be oriented and carefully measured with

respect to the observed structural features including all veining encountered. With this

information it may be possible to define corridors of this mineralisation style and for which

additional tonnes and grade estimates can be made.

d) MRL should undertake a more regional and system-wide approach during subsequent

exploration drilling to enable identification of other proximal, peripheral or separate areas of

mineralization within the confines of the regional IP chargeability responses on the Archangel

property.




4. INTRODUCTION

This technical report has been prepared for Mindoro Resources Limited and its wholly owned

subsidiary, MRL Gold Philippines Incorporated. Mindoro Resources Limited is listed on the Toronto

Stock Exchange [TSX-Venture Exchange]. The report was prepared following communications

between the writers and Mr J. A. Climie of MRL Gold Philippines Inc. The Archangel property is the

subject of an agreement between Mindoro Resources Limited [Mindoro] and Egerton Gold Philippines

Incorporated [Egerton] whereby Mindoro may earn up to a 75% interest in the property. On achieving

production, Egerton has the right to participate at the 25% level or convert that interest to a 2% gross

smelter royalty.

The report provides a detailed summary of the geology and mineralization of the Kay Tanda and

Pulang Lupa epithermal Au prospects on the Archangel property, reviews and presents historical and

recent exploration activity on the property, discusses the results of current mineral resource delineation

drilling and presents an initial precious metal resource estimate for the Kay Tanda and Pulang Lupa

areas.

This report utilizes information contained within technical reports that have been written by MRL Gold

and their consultants, information contained from reports held by the Mines and Geosciences Bureau

(Philippines), relevant information contained within published technical papers, and draws on

observations made by the principal author on site on the Archangel property and on the surrounding

properties. The author visited the property on seven (7) occasions between November 2005 and August

2007 (40 days cumulative). The author has been accompanied in the field on several occasions by MRL

Gold Project Manager for the broader Batangas project, Mr Fianza T. Lab-oyan, by MRL Gold Project

Geologist Mr Idiano A. Fetiza, Jr, and other MRL Gold geologists. All sources of data used in this

report are cited in Section 23.

Sections 1-18 and 20-23 of this technical report were prepared by Dr. Bruce D. Rohrlach, a geological

consultant from Melbourne, Victoria, Australia, while the resource estimate (Section 19) was

conducted and documented by Mr Dean Fredericksen of Ravensgate Minerals Industry Consultants,

Perth, Western Australia. Both authors of this report are qualified persons as defined by National

Instrument 43-101. All work conducted at the Archangel property was carried out under the

supervision of James A. Climie, P. Geol., who is also a qualified person and who has carried out

frequent and extensive site visits.

All information presented in this report was prepared in accordance with the requirements of National

Instrument 43-101F1, Standards of Disclosure for Mineral Projects and is in the format prescribed by

that instrument.




5. RELIANCE ON OTHER EXPERTS

The Authors of this report are Qualified Persons, and have relied on various datasets and reports that

were provided by Mindoro Resources Ltd to support the interpretation of exploration results discussed

in this Technical Report. This data consists of surface geochemical samples (soil samples, stream-

sediment samples, rock-chip samples and trench samples) plus drill-hole samples (diamond core and

RC percussion chip samples). The results and conclusions that are discussed in this report are

dependent on the accuracy of the geological and legal information that was provided by MRL, and

these are believed to be up to date and complete at the time of publication of this report. The data that

was provided to the principal Author was deemed to be in good stead, and is considered reliable. The

principal Author is not aware of any critical data that has been omitted so as to be detrimental to the

objectives of this report. There was sufficient data provided to enable credible interpretations to be

made in respect of the data. The principal author believes that no information that might influence the

conclusion of the present report was with-held from the study. The Authors assert the right, but not the

obligation, to modify this report and its conclusions if new information is presented after the date of

publication. The Authors do not take responsibility for the quality of the data that was provided or

produced by MRL, other than the routine verification work that was undertaken by the Authors prior to

preparation of this report, and which is documented in this report. The Authors assume no

responsibility for the actions of MRL in the distribution of this report.

The Authors did not verify the legal status of the property in respect of the joint venture with Egerton

Gold Philippines Inc, and have relied on details provided by MRL. All details in this report pertaining

to ownership arrangements, royalty agreements, Memorandum of Agreements and other legally

binding contracts between Egerton Gold Philippines Incorporated, Mindoro Resources Limited, MRL

Gold Philippines Incorporated and local landowners, as provided by MRL Gold Philippines

Incorporated are taken as true. The principal Author is not aware of any external claim on the property

by other parties due to financial grievances, nor is the Author aware of any liabilities or responsibilities

due to environmental regulations that might impede the ongoing development of the Kay Tanda

project.

A preliminary environmental impact assessment study that was conducted by an independent multi-

disciplinary team led by Ms. Teresa Vinluan is referenced in this report. That report is taken as a

reliable and credible preliminary assessment and to which the authors of this report take no

responsibility for its accounts.

Section 18 of this report summarizes the results of initial metallurgical testing (simulated heap leach

testing), the procedures and results of which were undertaken and documented by Peter J. Lewis and

Associates and Metcon Laboratories, a division of Ammtec Ltd located at 16 Ethyl Avenue, Brookvale

NSW 2100, Australia [ABN 40 396 637 856]. The Authors of this report do not take responsibility for

the representative nature of the metallurgical samples sent for study nor for results obtained by P.Lewis

and Metcon as briefly referenced in Section 18 of this report.

The principal Author, Dr B.Rohrlach is responsible for compiling all sections of this NI 43-101

technical report excluding Section 19. Mr Dean Fredericksen of Ravensgate Minerals Industry




Consultants is responsible for the ore resource calculations, the methodologies used in the resource

estimate as documented in Section 19 of this report and the category to which the ore resource has been

assigned. Section 19 of this report comprises the resource estimation report of Ravensgate Minerals

Industry Consultants in its entirety with stand alone table of contents, figure sequence and appendices.

The responsibility of the Authors of this report is limited to making an enhanced resource estimation

based on the original data supplied by MRL and in applying the appropriate methodologies in creating

the resource model. This combined report complies with the NI 43-101 regulations pertaining to the

writing of a Technical Report.

The Authors statements and conclusions that are made in this 43-101 compliant report in respect of

geological information are based on data that was provided by MRL in August 2007. The principal

Author is not aware of any additional exploration activity or data acquisition on the property since that

date. Once Mindoro Resources recommences exploration on the Archangel property, the acquisition of

new data may result in changes in interpretations, conclusions and subsequent recommendations.

The Authors are not in any way an affiliate of Mindoro Resources Limited or any of its subsidiary

companies, and the interpretations in this NI 43-101 Technical Report are not dependant on any prior

agreement concerning the conclusions reached. The Authors will be paid a fee for the preparation of

this report in accord with standard professional consulting practice.

6. PROPERTY DESCRIPTION AND LOCATION

6.1 Location

The Archangel project is located ~115 km south of Metro-Manila, in the Batangas Province of southern

Luzon, Philippines (Figure 1). Access to the project area from Manila is via the South Super Highway

and National Highway to Batangas City (110 km), then a further 33 km by sealed road east of Batangas

City to the township of Lobo, after by-passing the Taysan turn-off. MRL Gold has a site office in Lobo

(Appendix 2) from where all exploration activity on the Batangas tenements is coordinated and where

company staff members are housed during their work roster. Access to the Archangel project from

Lobo is by a 15 km unsealed coastal road that runs through barangay’s Mabilog, Sawang, Sulok and

Malabrigo to Barangay Balibago (Figure 2). MRL Gold has a field office in the coastal village of

Malagundi.

The Archangel project is situated along the coastal strip that extends from Balibago village to Marita

village, in the municipality of Lobo. The Archangel property (MPSA 177-2002-IV) covers 1,011.5434

hectares and is contained within geographic latitude coordinates 13°36’30”N and 13°39’30”N and the

geographic longitude co-ordinates 121°17’30”E to 121°20’00”E (Figure 2). It is located in barangay

Balibago, Municipality of Lobo, Province of Batangas.

The project area is classified as timberland. No indigenous groups live within the MPSA area, and most

of the population comprises of Christian settlers who live within the coastal settlements of Archangel

and Balibago (Figure 6). The principal author is not aware of any environmental liabilities to which the

property is subject other than those that fall under the auspices of the Philippine Mining Act of 1995.




The locations of the known mineralized zones defined by drilling on the Archangel property relative to

the property boundaries are illustrated in Figure 6. The Kay Tanda and Pulang Lupa mineralized zones,

as they are presently defined, lie almost entirely within the Archangel MPSA (Figure 6), although the

southeast margin of the Kay Tanda zone likely extends beyond the boundary of the Archangel MPSA

and onto the Philex EP which lies due east of Kay Tanda (Figure 6). The locations of small-scale

historical workings on the Archangel MPSA are also shown in Figure 6. One area of historical

workings lies within the central portion of the Kay Tanda mineralized zone whilst the other lies

midway between Kay Tanda and Balibago. There are no existing mineral reserves, tailings ponds,

waste deposits nor other mine infra-structure within or near the property boundaries. An unsealed road

runs along the coast for the full length of the Archangel MPSA. A preliminary mineral resource was

calculated for Kay Tanda and Pulang Lupa by Bailey (2003) and which utilized a total of 13 drill-holes

that were drilled by Chase Resources. This resource estimate, however, was not accepted by the TSX

due to a limited understanding of geological controls on the mineralization at that stage. The inferred

but non-compliant resource of Bailey (2003) for both oxide and sulfide material was estimated to be

about 17,000,000 tonnes of mineralized material at 0.68 g/t gold and 2.48 g/t silver.

Figure 1 – Location of the Archangel Project in Southern Luzon, Philippines.




6.2 Property Description

The Archangel Project forms part of the Batangas Project cluster in which MRL have an interest. The

Batangas projects include the Lobo Project, several areas that have been recently acquired from Philex

Gold, and other tenements that are the result of separate agreements with individual claimants. The

properties that collectively comprise the Batangas projects, and in which MRL Gold have an interest,

are tabulated in Table 1 and shown in Figure 2. Of these 14 properties, two (2) of them are approved

Mineral Production Sharing Agreements – MPSA 177-2002-IV [Archangel Project; subject of this

report] and MPSA 176-2002-IV [Lobo Project; subject of a previous independent report by Bailey

(2005)]. Five (5) of the 14 properties are approved Exploration Permits (EP’s) while the seven (7)

remaining properties are Exploration Permit Applications (EPA’s) (Table 1).

The total area of land that is either held by MRL Gold or under application by MRL Gold is

29,117.5776 hectares. The boundaries of these approved properties, and properties for which

applications have been submitted to the relevant authorities, are shown in Figure 2. The total area of the

two (2) MPSA properties that have been granted to date (Lobo and Archangel) is 2,175.1629 hectares.

The boundaries of MPSA 177-2002-IV [Archangel] were purportedly surveyed by Chase prior to

Mindoro’s involvement in the project. Mindoro use the co-ordinates that were provided by the issuer of

the permit, the Mines and Geosciences Bureau of the DENR, as the MPSA boundary when plotting

tenement boundaries relative to the location of exploration activities that are surveyed by EDM survey

equipment. The surveyed coordinates of drill-holes are tied to a local grid. The local grid was set-up

with the Chase drill-hole CA-05 as a reference or origin point, and this local grid is also tied to a

Bureau of Lands Location Monument (BLLM). The BLLM is a concrete benchmark that is located at

the Malabrigo lighthouse and which is used to establish land parcel boundaries in the region.

The Archangel Property is covered by an approved Mineral Production Sharing Agreement

denominated as MPSA No. 177-2002-IV and is held by Egerton Gold Philippines Incorporated. It

originally consisted of 18 mineral claims that were filed by four individuals. Five (5) mineral claims

were registered to the name of Arsenio Lecaros with the MGB-IV on 24th June 1987; seven (7) mineral

claims to Narciso Bautista on 5th March and 1st April 1987; three (3) mineral claims to Alejandrina

Bautista on 24th June 1987; and three (3) mineral claims to Primo Manlansing on 14th September 1987.

These claims were later assigned to Manuel Arteficio in August 1987 through two separate General

Powers of Attorney, which were notarized on the 4th November 1987 and registered with MGB-IV on

12th July 2001. The assignee filed an MPSA application covering the 18 mineral claims on 15th

September 1997 and was registered with MGB-IV, denominated as AMA-IVA-150. A Deed of

Assignment was executed by Manuel Arteficio on the 4th May 2000 in favor of Egerton Gold

Philippines Incorporated, and was approved by MGB-IV on 4th October 2000. By way of an option

agreement with Egerton Gold Philippines Incorporated signed on 23rd October 2000, Mindoro

Resources Ltd., through its wholly owned subsidiary, MRL Gold Philippines Incorporated, acquired the

right to earn a 75% interest in the Archangel Property when it signed an agreement.




Table 1 – Properties in which MRL Gold Philippines Inc. have an interest in the Southern Batangas

Mineral District.




Figure 2 – Properties of the Batangas Project portfolio in which MRL Gold Philippines Inc. has an interest.




The Archangel MPSA 177-2002-IV was granted on the 21st November 2002 for an initial two-year

exploration term, and the MPSA was registered on the 22nd January 2003. MRL Gold subsequently

applied for their first 2-year renewal on the 16th December 2004. The 1st renewal was granted on the

26th May 2005. MRL Gold subsequently submitted a 2nd renewal application of the exploration period

on 20th March 2007. This 2nd renewal was granted on the 27th July 2007. Three renewals of 2 years each

are allowed as part of the maximum 8 year exploration period allowed before a project must have a

clearly defined resource and a detailed plan for resource development underway for the remaining

years of the first 25-year term allocated for an MPSA.

The Philex EP (formerly EPA-IVA-095; Table 1) adjoins the Archangel MPSA (Figure 2) and may be

utilized should any future mine infra-structure be built at Kay Tanda and Pulang Lupa. It is composed

of 1579.2527 hectares, and is covered by an Exploration Permit (EP) that was approved on September

13, 2007, and denominated as EP-010-IV. It is composed of five (5) parcels, four (4) of which are

adjacent to the Archangel MPSA Contract Area. Philex acquired the properties from Bangkal Mineral

Exploration Corporation, Sibutad Mining Corporation and Moises Tuason, Sr. On June 3, 2003, Philex

Mining Corporation executed a Deed of Assignment with Royalty Agreement covering the EP area in

favor of Egerton Gold Phils., Inc., a Filipino company. Egerton may earn a 100% interest by taking the

project to production within a ten-year period [extendable for five years]. Philex will retain a 2% net

smelter royalty for the operation of the mining claims under Bangkal and Sibutad, while Tuason will

retain 4% net smelter royalty over his mining claims. By agreement with Egerton Gold, Mindoro can

earn a 75% interest in this EP area. Depending on developments, the EP may be converted into a

Financial or Technical Assistance Agreement (FTAA).

The Archangel property contains an inferred and indicated mineral resource at Kay Tanda and Pulang

Lupa and which is the subject of this Technical Report. There are no mine workings on the property

other than some small-scale workings. There are no tailings ponds nor waste dumps within the property

boundary. An unsealed coastal road is the only natural improvement of significance in the area and it

runs close to if not within the southeast boundary of the property.

The Author is not aware of any pre-existing environmental liabilities to which the property is subject.

The company is however required to rehabilitate areas of significant surface disturbance should these

be created during the course of exploration activities.

6.2.1 Tenement Type - MPSA

An MPSA is a form of Mineral Agreement (MA) whereby 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, in

kind or in value, as owner of the minerals. In return, the Contractor provides the necessary financing,

technology, management and personnel for the mining operation. Allowable mining operations include

exploration, development and utilization of mineral resources. The following accounts provide a

detailed summary of important implementing rules and regulations in respect of MPSA properties, and

as such, are applicable to the approved Archangel MPSA.




In addition to the mandatory documentary requirements for MA applications, the following are

required: (1) A National Commission on Indigenous Peoples (NCIP) Certification that the area does not

overlap any certified or claimed ancestral land/domain; and (2) Where the area overlaps any certified or

claimed ancestral domain, the Free and Prior Informed Consent of the concerned Indigenous Cultural

Community (ICC)/s/Indigenous People (IP)/s and the pertinent Memorandum of Agreement executed

by and between the MA applicant, the concerned ICCs/IPs and the NCIP, in a form and substance

consistent with Section 8 of Part III, Rule IV of NCIP Administrative Order No. 1, Series of 1998.

The Secretary of the DENR (Department of Environment and Natural Resources) is authorized to

approve MA’s. Upon approval of the MA by the Secretary, the same is forwarded to the Mines and

Geosciences Bureau (MGB) for numbering. The Director then shall notify the Contractor to cause the

registration of its MA with the Bureau for areas inside Mineral Reservations or with the concerned

Regional Office for areas outside Mineral Reservations within 15 working days from receipt of the

written notice. Registration is affected only upon payment of the required fees. The Bureau/concerned

Regional Office shall then officially release the MA to the Contractor after registration of the same.

Failure of the Contractor to cause the registration of its MA within the prescribed period shall be a

sufficient ground for cancellation of the MA. Transfer or assignment of MA applications are allowed

subject to the approval of the Director/concerned Regional Director, and taking into account the

national interest and public welfare: Provided, that such transfer or assignment is subject to eligibility

requirements, and shall not be allowed in cases involving speculation.

Approved MPSA’s have an initial term of 25 years, renewable thereafter 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 exceeding a total term of 8 years, subject to annual review by the

Director to evaluate compliance with 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 prepared 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. The reports shall include detailed financial

expenditures, raw and processed geological, geochemical, geophysical and radiometric data plotted on

a map at 1:50,000 scale, copies of originals of assays results, duplicated samples, field data, copies of

originals from drilling reports, maps, environmental work program implementation and detailed

expenditures showing discrepancies/deviations with approved exploration and environmental plans and

budgets as well as all other information of any kind collected during the exploration activities. All the

reports submitted to the Bureau are subject to the 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 PhP75.00 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.

The MPSA may be suspended for failure of the Contractor to comply with any provision of the

Act and to pay taxes, fees and/or other charges demandable and due the Government. In addition, the

said Agreement may be terminated for the following causes: (a) expiration of its term whether original




or renewal; (b) withdrawal from the Agreement by the Contractor; (c) violation by the Contractor of the

MPSA’s terms and conditions; (d) failure to pay taxes, fees or financial obligations for two consecutive

years; (e) false statement or omission of facts by the Contractor; and (f) any other cause or reason

provided under the Act and its IRR, or any other relevant laws and regulations.

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 to

the Regional Director, copy furnished to the Director, 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 DENR

Secretary may approve, upon the recommendation of the Regional Director of the MGB, through the

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.

The Contractor shall submit, within 30 days before the completion of mine development and

construction of production facilities, a Three-Year Commercial Operation Work Program to the

Director through the concerned Regional Director. The Contractor shall commence commercial

utilization immediately upon approval of the Work Programs. Failure of the Contractor to commence

commercial production within the period shall be considered a substantial breach of the MPSA.

The Archangel Project [MPSA 177-2002-IV] was approved on the 21st November 2002 and was

registered on the 22nd January 2003 with the Department of Environment and Natural Resources. The

tenement is in good standing. Mindoro and Egerton Gold have subsequently made application for, or

acquired through agreement, additional tenements including those acquired from Philex Gold (Figure

2).

A decision of the Philippine Supreme Court in respect of the status of FTAA’s (Financial and

Technical Assistance Agreement) was made in February 2005 and allows, with finality, 100% foreign

ownership of the mineral tenement under the FTAA. If economic resources are established for the Kay

Tanda-Pulang Lupa prospect, then Mindoro will consider converting the MPSA into an FTAA.




7. ACCESS, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE

AND PHYSIOGRAPHY

7.1 Access

The Kay Tanda prospect is located 115 aerial kilometers south of Metro Manila (Figure 1). It is situated

at Sitio (village) Malagundi, Barangay Balibago, Municipality of Lobo, Batangas province. Access is

via the National Highway south from Manila to Batangas City (110 km), then a further 33 kilometers

by a mostly sealed road that leads to the Municipality of Lobo, and finally, a further 8 kilometers along

an all-weather road and 7 kilometers of poorly maintained tracks to Barangay Balibago. Sitio

Malagundi is a small village located along the coast east of Lobo. The Archangel Project area extends

about 1.9 km landwards and runs parallel to the northeast-trending coastal strip (Figure 2). The total

travel time by land from Manila to Balibago is approximately 4 hours.

7.2 Climate

The climate of the Archangel area is characterized by relatively pronounced dry and wet seasons. The

dry season extends from December to May whilst the wet season extends from June to November.

Rainfall during the wet season is related to monsoonal rains and also to the remnants of typhoons that

pass through the area as tropical depressions.

The Archangel Project area lies within the 17% frequency occurrence zone for typhoon passages

through the Philippines (Vinluan et al., 2007), since most typhoons that enter PAR (Philippine Area of

Responsibility) pass through the northern half of Luzon. The Batangas region in Southern Luzon

experiences the equivalent of about 3-4 typhoon-related weather disturbances a year. These are

predominantly tropical depressions that form when typhoons begin to cross the land area of the eastern

Philippines and rapidly decay in intensity as they move northwestward across the country. These

weather events are associated with elevated rainfall during the wet season months.

An analysis of rainfall in the nearby Laiya, San Juan area (Vinluan et al., 2007) indicated that

precipitation occurs mostly in short duration and high intensity storms rather than as long-lasting low

intensity rainfall. Whilst rainfall can be variable due to local topographic/orographic effects, the

monthly rainfall presented by (Vinluan et al., 2007) for the nearby Laiya region in the Batangas

province give a fair indication of the approximate average monthly rainfall expected at the Archangel

Project area (Table 2).

Table 2 - Monthly rainfall for the Laiya region near the Batangas project area (mm).

Month Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Annual

Rainfall

(mm) 88 55 48 75 142 235 257 281 270 362 297 218 2328

Rainy

Days 14 9 8 8 20 15 17 17 17 19 17 18 169




MRL Gold has recently installed a rain gauge in the project area to measure and monitor local rainfall

variations through the year.

7.3 Local Resources and Infrastructure

The village of Sito Malagundi is populated by subsistence and garden-to-market agriculturalists and

fishermen. The main agricultural products grown in the area are fruit (custard apple, mango and

coconut). An all-weather road leading to the village of Sitio Malagundi from Lobo is currently being

maintained by the local government. MRL Gold currently provides some logistical assistance to the

local government for road maintenance. An access road that leads from the coastal village of Sitio

Malagundi up to the Kay Tanda and Pulang Lupa prospects is maintained solely by MRL Gold.

The villages along the coastal strip of the Archangel Project are connected to a local power station at

San Juan, Batangas, and draw their supply though the provincial electric cooperative called Batelec

(Batangas Electric Cooperative). The San Juan station is connected to the national power grid.

The Archangel project is located along a shoreline facing the Verde Island Passage. The project would

have easy access to marine transport in the event that a wharf or pier was built in the region. The Ilijan

Natural Gas Power Plant lies on the coast approximately 20 km southwest of the Archangel property.

The town of Lobo and the regional centre, Batangas City, have large populations that could provide a

substantial skilled labor force should any mining operation commence in the region.

If a mineral deposit is delineated with potential for economic mineral extraction, then an assessment of

the terrain would be conducted by appropriate mining engineering consultants to identify land

availability for mine infrastructure, such as tailings storage areas, waste disposal areas, heap leach pad

areas and potential processing sites.

7.4 Physiography

The Archangel area is characterized by moderate to high topographic relief that lies on the southeastern

flank of the deeply eroded (extinct) Mt Lobo volcanic centre (969m ASL). The maximum elevation on

the Archangel property (MPSA 177-2002-IV) is 840 meters above sea level (ASL), and this high point

is located in the northwestern part of the Archangel MPSA (Figure 5).

The central and southeastern parts of the Archangel property vary from near sea-level to 500 meters

ASL. The elevations in the Kay Tanda prospect area vary mostly from 260m to 430m ASL. The

Archangel Project area is deeply incised by numerous southeast-draining creeks that shed from the

high-lands to the northwest. The Kay Tanda and Pulang Lupa prospect areas are divided by a deeply-

incised south-draining tributary of Malagundi Creek 1. The northeast side of Kay Tanda prospect is

drained by Kaliwa Creek, an east-flowing tributary of Lumbangan Creek.




8. HISTORY

8.1 Spanish Era

The earliest recorded mining in the region dates back to the pre-Spanish era when Chinese small-scale

miners worked on the Kay Tanda prospect area and in its immediate vicinity. An account of the early

history of mining and exploration at Balibago and at Lobo are found in reports made by the Spaniards

during their colonization of the country. These records were preserved and archived in several volumes

of “The History of the Philippine Islands” compiled and translated in English by Blaire and Robertson

(19?). Evidence of these early Spanish workings includes several old pits and adits that are found along

Ahit Ridge and at Kay Tanda. Near these workings are boulders with rounded hollows about 20 cm in

diameter that are thought to have been used to crush and grind the ore. Older members of the local

community claim that their ancestors recited stories of old long-haired Chinese people with one foot

tied to an iron chain who worked in the tunnels, and of an old man guarding the portal of these tunnels.

Old Chinese pottery and rusted iron chains have been located in and near these areas and historical

accounts tend to give credence to the stories recounted by locals in the region (Buenavista 1997).

Prior to World War II the Japanese explored the Balibago region for base-metals (Miguel 1997). The

father of the late Dr. Arsenio Lecaros, one of the original claim owners, together with unnamed

Japanese, explored Balibago for base metals. Sumitomo Mining Corporation explored the region in the

1970’s and drilled two (2) diamond drill holes (Miguel 1997).

8.2 Mines and Geosciences Bureau

In 1975, the MGB conducted reconnaissance geological mapping, mineral resource evaluation and

stream-sediment surveys over the southern Batangas Province, including over the area of the Archangel

and Lobo Properties (as reported by Avila, 1980). Several copper prospects were documented,

including old mine workings and abandoned prospects. The -80 mesh stream sediment survey of the

bureau revealed some copper-anomalous drainage channels which include the catchment area of the

Lobo Mine (Sampson Vein) and a tributary that is located approximately 1.5 kilometers south of the

Lobo Mine (Copper Creek). In 1983 Questor Surveys Limited flew an aeromagnetic survey over a

large part of the Philippines. This regional survey covered the Archangel region and utilized a variable

flight-line spacing of 2 to 4 km.

8.3 Western Mining Corporation

WMC of Australia carried out exploration on the Archangel Project in 1987 through to 1989. WMC

undertook surface soil sampling and ground magnetic surveys in the Archangel region prior to drilling

seven (7) diamond drill holes (ARD 1-3 at Pulang Lupa and ARD 4a, 4b, 5-6 at Kay Tanda).

Early reconnaissance exploration by WMC involved regional mapping and collection of

reconnaissance rock-chip samples. These reconnaissance samples yielded several values in the 0.3 to

0.5 g/t range from Marita Creek, and at Ahit, Kay Tanda and Pulang Lupa (Buenavista 1991). The best

rock-chip value was a 2.05 g/t Au assay from a sample that WMC collected from Malagundi River

which drains the area between Pulang Lupa and Kay Tanda. Rock-chip samples from Pulang Lupa and




Kay Tanda indicated a strong Au-Ag-As-Hg association (epithermal signature) which WMC

considered warranted follow-up. WMC subsequently conducted a detailed rock-chip sampling program

on a 100m x 100m grid, and this work indicated that the Au, Ag, As and Hg at Kay Tanda tended to

occur in silicified rocks and breccias, particularly when these contained chalcedonic quartz vein

stockworks. Gold values from this program ranged from 0.3 to 2.0 g/t. A sample of veined material

from Pulang Lupa returned 12.53 g/t Au and 68.9 ppm Ag.

WMC subsequently conducted a soil sampling program (-200 mesh) on the grid over the Kay Tanda

and Pulang Lupa areas. A total of 664 samples were collected in 1988. The program identified

geochemical anomalism at Kay Tanda and Balibago. Follow-up sampling was done on 50m x 50m

infill grid at Pulang Lupa and Balibago in late 1988. This work revealed that the Pulang Lupa and Kay

Tanda areas were within a broad arsenic anomaly and contained spotty though anomalous gold and

silver values. Base-metal enrichment (Cu and Zn) appeared to be more pronounced in the Balibago

region. The geochemical survey identified two types of mineralization at Archangel. The Kay Tanda

and Pulang Lupa areas had geochemical signatures of an epithermal system (Au-Ag-As-Hg) while the

Balibago area gave a signature of a porphyry copper-gold system (Cu-Zn-Au but low As). The copper

soil anomalies that WMC defined over the Balibago Prospect were not drill tested by WMC.

WMC conducted some trenching activity at Pulang Lupa and Kay Tanda. The name Pulang Lupa

means “red earth”, a product of the intense hematization within the oxidized breccias in the prospect

area and the associated down-slope dispersion of the derived hematite-rich soils.

WMC also conducted a ground magnetic survey in 1989 to try and detect possible structures that might

control mineralization at Archangel. The results of this survey showed a sharp contact between the

magnetite-bearing Lobo Agglomerate and the underlying and altered basement rocks that consist of the

Talahib Volcanic Sequence. The altered basement had a low magnetic signature due to magnetite

destruction, and was readily mapped by ground magnetic surveys. A magnetic intrusion was outlined

along the northwest-trending Balibago River, within the inferred porphyry Cu target at Balibago. A

wide, northeast-trending, magnetic anomaly which coincides with an anomalous radiometric

(potassium) signature was interpreted to reflect porphyry copper-gold mineralization at depth.

The WMC exploration drilling program focused on the Kay Tanda and Pulang Lupa epithermal gold

prospects. WMC drilled seven (7) diamond holes for a total meterage of 1002 meters. The drilling was

conducted by Island Arc Drilling Corporation (Buenavista 1991). WMC intersected significant gold

values in their drilling, and several of the WMC drill holes passed from an epithermal gold zone into an

inferred porphyry copper-gold related phyllic alteration zone that contained anomalous copper [to 0.6

% over short intervals]. The work of WMC suggested that a porphyry copper-gold system may lie at

depth below the epithermal mineralization at Kay Tanda.

8.4 Chase Resources - BHP

The 1990’s also saw renewed interest on the nearby property at Lobo (MPSA 176-2002-IV), but legal,

tenement and corporate ownership problems prevented local and foreign mining-exploration companies

from conducting exploration work on the property. During this time, WMC, Chase Resources, BHP,

Billiton, Lepanto Mining, and Philex Mining were all unsuccessful in concluding an agreement on the




Lobo property. At the time, Philex Mining Corporation held the ground immediately northeast of Kay

Tanda.

Chase Resources [Chase] of Canada, in a joint venture with BHP Minerals, carried out more extensive

RC drilling at Kay Tanda in an exploration program conducted from 1995 to 1998. The Chase drilling

data were used in a preliminary independent resource study that was conducted in 2003 [Bailey, 2003].

Thirteen (13) RC drill holes were completed by Chase Resources between January to March 1998 at

Kay Tanda and Pulang Lupa. The holes drilled by Chase Resources intersected both the upper silicified

and argillized zones at Kay Tanda and Pulang Lupa and also underlying zones of phyllic alteration. The

general grades of the Chase intersections were comparable to those encountered by MRL at Kay Tanda

and Pulang Lupa.

Percussion drilling by Chase at Kay Tanda was wide-spaced, with most holes located over 100 meters

apart. The Chase drill holes intersected low-grade gold mineralization that averaged about 0.7 grams

per tonne (g/t) in an area of approximately 600 meters by 400 meters. Mineralization was open in

several directions. Some higher grade intersections were obtained by Chase, and which had not been

closed off by drilling. They include hole CA-02 which encountered 8.6 g/t gold over six (6) meters and

CA-09, more than 200 meters distant, with 7.0 g/t gold over two (2) meters. The deeper zones of

narrow but higher-grade mineralization at Kay Tanda, several of which were also encountered by

MRL, are yet to be fully evaluated.

World Geoscience flew a heli-borne magnetic and radiometric survey for BHP over the Archangel and

Lobo projects in 1996. BHP Minerals was in a joint venture with Chase Resources at the time. The

helicopter-borne aeromagnetic survey employed a regular flight line spacing of 200m and tie lines of

1000m. The mean terrain clearance was about 40m. Survey instrumentation included a split beam

Cesium Scintrex magnetometer and a 256-channel PGAM–1000 spectrometer. Aeromagnetic data

interpretation and ground verification was undertaken by Dr. Greg Corbett. His report highlighted a

large aeromagnetic anomaly that lay close to the coastline at Archangel. This anomaly coincided with a

wide potassic anomaly which has turned out to be related to illite-sericite alteration (predominantly

argillic alteration) alteration. A circular feature in the Malabrigo region was interpreted as a caldera-

like feature by Dr G.Corbett. The magnetic highs that lay around the circular feature coincided with

topographic highs and are probably related to the cliffs of Lobo Agglomerate that cap the altered

Talahib Volcanic Sequence. Although these magnetic highs do not constitute a target in this instance,

the areas of anomalously low magnetic signature appear to reflect regional alteration systems that have

resulted in magnetite-destruction within the volcanic sequences and thus reflect regional centers of

hydrothermal activity and potential associated mineralization.

Chase did not do any further serious work at Archangel and Lobo, and instead they remained occupied

with their Taysan porphyry copper-gold resource-definition drilling project (13 km north of Lobo).

They were unable to conclude a deal on the Lobo property.

8.5 Egerton Gold NL

In 1997, Egerton Gold NL of Australia entered into a deal with the claim holder, Apical Mining.

However, shortly after that, the minerals market collapsed and Egerton withdrew from the Philippines.




The mineral interests of Egerton Gold NL were purchased by private Philippine and Australian

interests, and amalgamated as Egerton Gold Philippines Incorporated to hold the Lobo and Archangel

Projects.

8.6 Billiton

Billiton purchased the aeromagnetic survey data from Chase in 1998, after they had conducted

tenement due diligence work and technical data evaluation of the Archangel and Lobo Projects (Tebar

1998). During early 1999, Billiton processed and interpreted the aeromagnetic data (Haynes 1999).

Billiton interpreted a cluster of six distinct magnetic responses within the Lobo tenement, and one just

outside the tenement on ground that was also controlled by MRL Gold / Egerton. These anomalies

were interpreted as high-level intrusions with which porphyry copper-gold mineralization could be

associated.

8.7 Mindoro Resources Ltd

In 2000, MRL Gold entered into a deal with Egerton Gold to acquire a 75% interest in both projects.

Thereafter Mindoro proceeded to expand their ground holding in the region. Through the acquisition of

the Philex property and adjacent lands, Mindoro was the first company to put most of the gold-copper

prospective areas in the region together into one set of contiguous land packages under a single

company ownership structure (Mindoro-Egerton).

Mindoro commenced reconnaissance work in July 2002 and outlined the 1.5 kilometer wide and 5

kilometer long gold and copper anomalous zone at Archangel. Reconnaissance rockchip sampling

indicated that high gold-copper-silver values are widely distributed along the Archangel trend (Gaña et

al., 2004).

An independent resource study was commissioned in 2002 by Mindoro (Bailey, 2003). This was

restricted to Kay Tanda, where WMC and Chase Minerals had conducted drilling activity. The drilling

was confined to a limited area within a much larger area of Cu and Au anomalous soils.

A non-compliant and inferred mineral resource of the oxide zone was estimated at 6,300,000 tonnes at

a grade of 0.48 g/t gold and 4.4 g/t silver. The underlying unoxidized mineralization had a non-

compliant and inferred mineral resource of about 10,700,000 tonnes at 0.79 g/t gold and 1.3 g/t silver.

The total inferred resource of both oxide and sulfide material (non-compliant) was estimated to be

about 17,000,000 tonnes of mineralized material at 0.68 g/t gold and 2.48 g/t silver. This equates to

370,000 ounces gold and 1,300,000 ounces silver contained in the total non-compliant inferred

resource. This initial estimate was later deemed inadequate by the TSX due to a limited understanding

of geological controls on the mineralization at that stage, and thus required further exploration work.

Exploration activity by Mindoro commenced immediately after Mindoro had registered the MPSA with

the DENR on the 22nd January 2003.

Since the epithermal gold mineralization is near-surface, and is within the grade ranges of

mineralization being heap-leached elsewhere in the world, Mindoro decided to commence an




evaluation of the open-pit, heap-leach potential of Kay Tanda and its extensions. To this end,

metallurgical test-work was carried out in 2004. Other exploration activity followed, leading to the

completion of a reverse-circulation percussion (RC) drilling program between March 2006 and April

2007. A diamond drilling program was also undertaken from August 2006 to July 2007. The drilling

was undertaken with the objective of defining an NI 43-101-compliant gold resource at Kay Tanda-

Pulang Lupa within a larger area than that covered by previous drilling. Percussion drill holes

penetrated below the epithermal gold zone to test underlying geophysical (IP) anomalies for porphyry-

style mineralization, and which were to be tested at a later date by deeper diamond core drilling.

There has been no substantial production from the Archangel property in recent times. Only small-scale

historical surface workings and limited construction of adits is identified from the historical accounts

described above.

9. GEOLOGICAL SETTING

9.1 Regional Geology

The Lobo and Archangel Projects are located within the Batangas mineral district. The district is

located on the northern side of the Verde Island Passage in Southern Luzon, and hosts the Taysan

porphyry copper-gold deposit of Freeport McMoRan. The Taysan porphyry deposit lies adjacent to the

projects of Mindoro Resources. The topography of the Batangas mineral district is dominated by the

Talahib and Lobo volcanic centers which occur within a deeply eroded, calc-alkaline, volcano-plutonic

arc complex of Late Cenozoic age (Figure 3).

A series of volcanic centers of Late Miocene to Recent age form part of a northwest-trending volcanic

arc along the western coastline of southern Luzon. This arc is here referred to as the West Luzon Arc,

its northern portion is also known as the Bataan Arc which forms the Bataan peninsula west and

northwest of Manila. The arc is related to eastward subduction of the South China Sea Plate at the

Manila Trench. Some of the volcanic centers that comprise this arc, from north to south, include Mt

Pinatubo, Mt Natib and Mt Mariveles (4.1 Ma and younger) on the Bataan Peninsula, the Maatas Na

Gulod Complex (4.9 Ma and younger) in western Cavite, a series of small volcanic centers (Palay

Palay, Caluya, Cariliao and Batulao), and the Talahib and Lobo volcanic centers (6.14 Ma and 5.15

Ma) in the southern Batangas district (Figures 3 and 4).

9.1.1 Compressional Tectonics (Middle to Upper Miocene)

The high metallogenic prospectivity of the Batangas mineral district is likely a direct function of the

tectonic processes that operated in the region, and these are outlined here in some detail.

The western seaboard of the Philippines, extending from Taiwan through Zambales, Mindoro,

Palawan, western Panay and Zamboanga, represent collision zones of variable intensity that were

induced by convergent interaction between the Eurasian Plate and the Philippine Sea Plate along a

complex, multi-strand boundary zone (Pubellier et al. 1991).




Rifted continental fragments of the Eurasian margin in the western half of the Philippine

Mobile Belt (i.e., Palawan Block - Taylor and Hayes, 1980; Mindoro, western Panay and Zamboanga

Peninsula - Rangin, 1991) are presently sutured to the basement of the eastern half of the mobile belt

along collision terranes. During the Late Miocene (~6 Ma), Taiwan, formerly on the leading margin of

the Eurasian Plate, collided with the northernmost part of the Philippine Arc. This collision between the

Eurasian Plate and the Philippine Sea Plate propagated southward to the Mindoro-Panay collision zone

(Figure 3) and then further south to the west Mindanao collision zone (Pubellier et al. 1991, 1996).

The Mindoro-Panay collision, wherein the Palawan Block of continental Eurasian Plate

derivation collided against the west margin of the Philippine Mobile Belt (Figure 3), resulted in intense

crustal compression around the collision front, and affected the southern Batangas region. Some

authors place the collision in the late Middle Miocene whilst others in the Late Miocene. A period of

crustal compression affected large areas of the northwest Visayas (Panay, Mindoro) and southwest

Luzon (Batangas region) during the prolonged collision. The former South China Sea crust, which was

subducting ahead of the converging continental fragment of the Palawan Block, was eventually

consumed. The Late Miocene Panay-Mindoro collision resulted in slowing and eventual cessation of

subduction around the collision front. The South China Sea Plate is presently stalled and jammed

beneath the Batangas region and Mindoro Island, as the southern part of the Manila trench became

jammed by buoyant continental crust of the Palawan Block.

On the northern margin of the collision zone, offshore from Manila, oceanic crust is still

subducting at the Manila Trench. Volcanism along the West Luzon Arc progressively decreased from

the south towards the north, as the Panay-Mindoro collision advanced. Volcanism however is still

active to the north along the Bataan Arc segment of the West Luzon Arc.

Potentially significant thrust faults are interpreted by topographic analysis of arcuate landforms

on the northeast side of the Batangas mineral district (Figure 5). These inferred thrust faults lie close to

the collision front and are likely to be of Late Miocene age. The region of compressive crustal

deformation associated with the impact of the North Palawan Continental Terrane (Figure 3) wraps

around the islands of Mindoro and Panay, and is likely to have affected the Middle to Late Miocene

sequences in the Batangas region.

These regional tectonic effects may be reflected in the present volcanic landforms along the

West Luzon Arc. The southern half of the West Luzon Arc (Figure 3) lies against the collision front,

and comprises volcanic centers that are deeply dissected (Maatas Na Gulod, Talahib and Lobo; Figure

4). The deeply eroded character of the Talahib and Lobo volcanic centers in southern Batangas and at

Maatas Na Gulod in Cavite (Figure 4), and the increasingly juvenile and youthful character of the

volcanic landforms farther north on the Bataan Peninsula (Mariveles and Natib; Figure 4) suggest that

andesitic volcanism waned substantially at Talahib, Lobo and Maatas Na Gulod soon after the regional

Late Miocene collision, as magma supply to the upper crust became increasingly hindered in the

compressional southern segment of the West Luzon Arc. This allowed erosion to outpace construction

of the volcanic centers. Farther north along the Bataan Peninsula, beyond the margins of the Mindoro

collision zone, andesitic magmatism continued unabated into the Quaternary. In this region, magma

ascent was not impeded by crustal compression, and magma generation continued to the present.




Evidence from the Lobo volcanic center (Figures 4 and 5) in the southern sector of the West

Luzon Arc, adjacent to the Panay-Mindoro collision zone, suggest that magmatism became less

frequent over time, and that the volcanic center went through several alternating cycles of andesitic and

dacitic magmatism, with a significant component of evolved dacitic magmas.

The points above collectively suggest a similar set of tectonic processes to those envisaged by Rohrlach

and Loucks (2005) as being key elements in the formation of large porphyry systems in collisonal

volcanic arcs in general. The key features are expounded below. Prolonged episodes of crustal

compression in collision zones generally reduce the volume of surface volcanism, as lower-crustal

ponding and storage of magmas is promoted. Magma production from the mantle also decays in step

with the reduction in subduction rate. The net result of collision tectonics on magma chemistry in arcs

is typically marked and profound.




Figure 3 (overleaf) – Tectonic elements of Southern Luzon (from Encarnación 2004 with color annotations

added by the author). The section of the West Luzon Arc described in this report extends from Central Mindoro to

Zambales. The green outline encompasses the region of seafloor that comprises buoyant continental crust of the

Palawan Block. This block did not subduct due to its buoyancy, and was accreted against the Philippine margin.

The north-south oriented Manila Trench is presently active west of Manila, however, its southern extension is

inactive west of and along the southern margin of Mindoro. Subduction was terminated here in the Late Miocene

when the North Palawan Continental Terrane collided with the Philippine Mobile Belt in Mindoro and Panay.

The Talahib and Lobo volcanic centers (pink circles) on the Batangas properties of MRL Gold lie near a

promontory of the Palawan Continental Terrane, and immediately adjacent to the collision front whose outline is

depicted by the dotted green line. Widespread crustal compression occurred through Mindoro and Panay, and

some evidence of thrusting is observed in the southern Batangas region (Figure 5). The proximity of the Batangas

properties of MRL Gold (the Talahib and Lobo volcanic centers) to the Mid- to Late-Miocene Panay-Mindoro

collision suture (dotted green line) and its implications is discussed in the text.

Pre-collisional volcanism in arcs associated with active subduction zones typically comprise basaltic

shields and basaltic andesite to andesitic stratovolcanoes, where tholeiitic mafic magmas and their

intermediate differentiated liquids have short storage periods in crustal reservoirs and relatively

unimpeded access to the surface. During collision events within arc segments, these dense mafic and

intermediate magmas are increasingly impeded in their ascent to the surface by high crustal stresses

along the collision front. Magmas increasingly pond in the lower crust for substantially longer periods

of time, where they become increasingly volatile-rich and acquire their exceptionally strong calc-

alkaline character as a result of high-pressure fractionation in lower-crustal reservoirs. In cases where

crustal stress is sufficiently high, surface volcanism can shut-off completely as the diminishing batches

of magma from the mantle are increasingly trapped in the lower crust. These non-magmatic gaps in

arcs are well documented within past and present compressional segments of the Andean volcanic

chain.

In compressional arc segments that undergo transient collision, magmas must evolve to increasingly

felsic compositions before their buoyancy can increase sufficiently to overcome the restraining effect

of crustal compressive stress. Thus in collisonal settings, magmas that reach the surface are, on

average, more highly evolved. Such a mechanism may account for the high proportion of dacitic rocks

in the Lobo volcanic center. Another important consequence of prolonged lower-crustal storage is the

enhanced multi-cyclic recharge and differentiation that the magmas are able to undergo in the lower

crust of collisional orogens. Such processes allow syn- to late-collisional magmas to ramp up to

unusually hydrous and volatile-rich compositions relative to equivalent magmas in non-collisional arcs

that have evolved to similar silica contents. These syn- to late-collisional magmas also exhibit “adakite-

like” chemical signatures that are induced by hornblende fractionation and retarded plagioclase

fractionation, both of which are induced by high-pressure crystal fractionation and high water

activities. These inter-related features are facilitated by the high crustal stresses in the collision zone.

These processes are documented in detail by Rohrlach and Loucks (2005) and references therein in

respect of the world-class Tampakan Cu-Au deposit in the southern Philippines.

The close proximity of the Mindoro-Panay collision zone to the Batangas province implies that similar

tectonic processes may ultimately be responsible for the high metallogenic fertility of magmas in the

district, and the resultant high metallogenic prospectivity.




9.1.2 Extensional Tectonics (Pliocene to Pleistocene)

A series of northwest-trending, arc-parallel faults transect the Batangas and Cavite provinces (Figure

4). One of these early arc-parallel structures lies along the southern edge of the Maatas na Gulod,

Calilao and Batulao volcanic centers (Figure 4) whilst another underlies the Talahib volcanic center

and defines the northwest-trending segment of coastline south of the Lobo volcanic center (Figure 5).

These arc-parallel structures coincide with the main axis of the West Luzon Arc and may have been

responsible for focusing magmas during the Middle Miocene.

Figure 4 – Location of the properties in which Mindoro have an interest in southern Luzon. Regional structures

are plotted from Sudo et al., 2000 and are superimposed on Shuttle Radar Topographic Mission (SRTM) data

covering the provinces of Cavite, Laguna and Batangas. The Verde Island Passage Fault is a low-angle splay off

the Philippine Fault which acts as a transfer structure between the Philippine Trench on the southeast side of the

Philippines and the Manila Trench on the northwest side (Figure 3). The black circles define the principal

volcanic centers along the northwest-trending West Luzon (Bataan) Volcanic Arc. A series of Late Miocene to

Pliocene volcanic centers: Mt Natib; Mt Mariveles (4.1 Ma and younger); Natas Na Gulod Complex (4.9 Ma and

younger); Calilao; Batulao; Talahib (6.14 Ma and 5.15 Ma); and the Mt Lobo Volcanic Center; form part of a

NW-trending volcanic arc related to eastward subduction of the South China Sea Plate beneath Southern Luzon

during the Late Miocene. These volcanoes are deeply eroded in the south and increasingly juvenile to the north.

Several NW-trending faults that transect the Batangas and Cavite provinces are major arc-parallel structures. NE-

trending structures that lie perpendicular to the trend of the West Luzon (Bataan) Arc are young extensional faults

of Pliocene and younger age which affected the Archangel Project area in the early stages of extension, but which

increasingly focused extension within the Macolod Corridor during the Pleistocene and Holocene.




During the Pliocene, a period of extensional tectonics began to affect the broader Batangas Peninsula.

Northeast-trending arc-normal structures developed as a series of normal faults across the Cavite,

Laguna and Batangas regions (Figure 4). Northeast-trending faults comprise a prominent part of the

structural architecture of the Archangel project area on the southern coast of the Batangas Peninsula,

and the coastline segments southeast of the Lobo and Talahib volcanic centers are controlled by

structures of this orientation (Figures 4 and 5). Thus it is likely that the early stages of crustal extension

in the broader Laguna, Cavite and Batangas provinces was widespread in the latest Miocene and

occurred along widely-spaced, arc-normal extensional structures. These extensional structures focused

magmatism (e.g. along the Macolod Corridor) and controlled hydrothermal systems. Subsequently

during and after the Late Pliocene, extension was more focused along the Macolod Corridor (Figure 4).

The Macolod Corridor comprises a NE-trending series of extensional structures associated with horsts

and grabens that have localized Late Pliocene to Recent volcanism. Laguna de Bay and Lake Taal are

caldera landforms that were centers of ignimbrite-forming eruptions. Mt Banahaw and Mt Makiling

and numerous other monogenetic basaltic cinder cones lie within this young NE-trending extensional

corridor. The NE-trending structures that comprise the Macolod corridor are orientated perpendicular

to the Manila Trench to the west. These arc-normal structures also lie in an extensional orientation

relative to the bounding sinistral strands of the Philippine Fault and the Verde Island Passage Fault.

The regional structural setting is consistent with NW-SE oriented crustal extension occurring about

NE-trending fractures, and these arc-normal structures appear to have focused recent magmatism along

the Macolod corridor. This northeast trend is a major control on mineralization and alteration in the

Archangel Project.

The oldest rocks in the southern Batangas district are Lower Tertiary (Oligocene) arc-basement

sequences comprising inliers of massive metamorphosed andesitic flows and metasedimentary rocks

(Avila 1980) known as the San Juan Formation (Section 9.3.1). The Early Miocene San Juan Batholith

intrudes these older sequences to the northeast of the Lobo and Archangel tenements. This intrusive

complex is dominated by coarse-grained and equigranular quartz hornblende diorites. The Taysan

porphyry Cu deposit lies within the San Juan Diorite complex.

Within and adjacent to the Archangel tenement are massive volcanic flows of porphyritic hornblende

andesite – the Middle Miocene Talahib Volcanic Sequence. This rock unit forms the principal

component of the Lobo Volcanic center and is intruded by younger Miocene-to-Pliocene age stocks

and dykes. It is overlain by Pliocene-to-Quaternary volcanics. Thin lenses of Upper Miocene-Pliocene

limestone (Mapulo Limestone Member of the Calatagan Formation) overlie parts of the Talahib

Volcanic Sequence. A limited exposure of this older limestone has been mapped within the Archangel

tenement where it occurs as white to buff, soft, porous coralline limestone with local occurrence of

jasperiod in areas where the limestone unit is altered. The Balibago Andesite is a thin and relatively

unaltered Pliocene eruptive sequence that unconformably overlies the Calatagan Formation, and may

be a correlative of the Maatas na Gulod Complex that has been identified elsewhere on the Batangas

Peninsula. A younger conglomeratic and agglomeratic unit – the Pinamucan Formation, overlies the

Balibago Andesite, the Calatagan Formation and the Talahib Volcanic Sequence. This sedimentary and

volcanic rock unit has been paleontologically dated as Pliocene in age and consists of poorly

consolidated polymict conglomerates, sandstone and shale. An overlying and widespread volcanic unit




– the Lobo Agglomerate – blankets much of the district. This younger volcanic cover consists of coarse

andesitic agglomerate and volcanic breccia, and is either equivalent to the upper part of the Pinamucan

Formation (Aurelio and Peña, 2002) or is of Quaternary age. A fine-grained ash-fall tuff the Taal

Tuff overlies the Lobo Agglomerate. A younger reefal limestone overlies all the previous units – the

Quaternary Limestone. A detailed description of these units is given in Section 9.3.

Figure 5 shows the location of the significant mineral prospects in the broader southern Batangas

region and the Archangel Project area. These include the Taysan porphyry Cu deposit of Freeport

McMoRan which lies ~8 km north of Calo, the Calo, Pica, Balibago and El Paso porphyry prospects of

Mindoro Resources, the high-sulfidation epithermal resource at Lobo on the Lobo MPSA, plus the Kay

Tanda and Pulang Lupa epithermal prospects, the Bootin high-sulfidation epithermal prospect and the

Marita porphyry prospect that lie on the Archangel MPSA. Other mineral occurrences and smaller

prospects are scattered through the region.

There are two (2) major structural grains in the southern Batangas region, northwest and northeast. The

northwest-trending structures are arc-parallel in orientation, and several lie sub-parallel to splays of the

Philippine Fault, so they may have been partly reactivated as part of the young Philippine Fault system.

The main structure of this orientation is the WNW-trending Laiya Fault, a major terrain suture that may

be related to accretion tectonics (Corbett 1996) and hence related to the Mindoro-Panay collision zone

(?). The Laiya Fault (Avila 1980) is coincident with a large curvilinear magnetic low defined in

regional magnetic data, and which may result from alteration along the Laiya Fault Zone. The northeast

trending structures (Figure 5) are arc-normal faults that likely initiated as extensional normal faults

related to the present extension along the Macolod Corridor. Elements of these early extensional

structures can be seen passing near the Taysan porphyry Cu deposit, a second separating the Talahib

and Lobo volcanic centers, and a third zone of northeast-trending structures defining the Archangel

trend (Figure 5).

Figure 5 (overleaf) – Regional structures in the Southern Batangas Mineral District interpreted from SRTM

(shuttle radar topographic mission) topographic data. The deeply eroded terrain to the northeast comprises the San

Juan Batholith of Early Miocene age. The batholith is bound on its southern side by the Laiya Fault Zone, a major

crustal discontinuity that separates older terrain to the north from younger volcanic sequences to the south. Two

(2) deeply eroded stratovolcanic centers lie south of the Laiya Fault Zone, the Mt Talahib volcanic center and the

Mt Lobo volcanic center. The Archangel property (top, heavy white outline) lies on the southeast margin of the

Lobo Volcanic center. A major ENE-trending structural lineament (C-1) separates the Talahib and Lobo volcanic

centers and passes near the southern edge of the Calo and El Paso prospects. Other sub-parallel structural

lineaments observed in the topographic data pass along the edge of the Taysan porphyry deposit and also define

the Archangel trend along which the Balibago, Pulang Lupa, Kay Tanda, Lumbangan, Marita and Bootin

prospects are arrayed. The Archangel trend also controls the linear northeast-trending section of coastline at

Archangel. Importantly, these northeast trends, at the scale of the Batangas district, are parallel to structures that

comprise the extensional Macolod Corridor (Figure 4).




9.2 Local Geology of the Archangel Project Area

The Archangel Project area is located some 4 to 5 km southwest of the Laiya Fault and lies on the

southeast flank of the deeply dissected Lobo volcanic center (Figure 5; upper panel). The project area is

dominated by the Talahib Volcanic Sequence of Middle and possible Upper Miocene age (Section

9.3.4) as shown on the Archangel geological map (Figure 6). The Talahib Volcanic Sequence

comprises a thick volcanic succession of dacite and andesite flows and tuffs. The lower portion of the

Talahib Volcanic Sequence is dominantly dacitic in composition, and comprises intercalated

porphyritic dacites, dacitic tuffs and reworked volcaniclastic rocks. They are well exposed around the

Kay Tanda prospect area, near the Balibago prospect and in the Lumbangan prospect area (Figure 6).

The upper part of the Talahib Volcanic Sequence is much more widely exposed in the Archangel

Project area and comprises intercalated porphyritic andesites, and andesitic ash tuffs (Figure 6). The

Talahib Volcanic Sequence is locally overlain in the Kay Tanda prospect area by bedded tuffaceous

and calcareous sedimentary rocks and minor limestone of the Calatagan Formation (Section 9.3.7 and

Figure 6). These sedimentary rocks are locally unconformably overlain by young porphyritic andesites

and tuffs that may form a local eruptive member equivalent to the Mataas na Gulod Complex. The

Talahib Volcanic Sequence and the Calatagan Formation are both overlain by extensive andesitic

volcanic breccias known as the Lobo Agglomerate. The agglomerate occupies the high-ground further

up the Lobo volcanic edifice, along the northwestern margin of the Archangel MPSA (Figure 6). The

Lobo Agglomerate is described in Aurelio and Peña (2002) as being part of the Upper Pinamucan

Formation of Pliocene age.

Intrusive diorite and quartz diorite bodies are mapped in some areas of the Archangel Project, intruding

both the lower dacitic portion and the upper andesitic portions of the Talahib Volcanic Sequence

(Figure 6). An elongate, northwest-trending diorite intrusion is mapped trending parallel and near

coincident to northwest-trending structures between the Pulang Lupa and Balibago prospects. A late-

stage and inferred syn-mineral dacite porphyry stock (Section 9.3.8) is mapped along the southeast

margin of the Pulang Lupa prospect and is contiguous with dacite porphyry bodies encountered in

drilling at the Kay Tanda prospect.

The volcanic and intrusive geology of the Archangel project and its surrounding area is consistent with

a complex polygenetic andesitic and dacitic volcanic center that evolved in a calc-alkaline island arc

setting. The presence of sedimentary sequences that must have formed near palaeo-sealevel due to the

presence of limestones, but which are presently preserved at high elevations (~400 metres ASL)

indicate that in the past there was likely to have been substantial vertical movement on some structures

which affected the flanking portion of the older Middle to Upper Miocene volcanic center. These

vertical movements were likely to have been caused by the extensional tectonic regime that affected the

area in the Pliocene following the late Miocene collision event (Section 9.1.2), and which formed the

north-east trending structural fabric that is strongly evident in the Archangel MPSA area.

Altered and mineralized volcanic rocks and associated high-level intrusions of diorite, quartz diorite

and dacite have been mapped along an approximate 6 km length of the Archangel MPSA. An extensive

regional zone of argillic alteration coalesces around a series of discrete centers of mineralization that

are clustered around inferred intrusive centers at Balibago, Pulang Lupa, Kay Tanda, Marita and




potentially elsewhere on the property. Details of the regional distribution of these alteration zones are

discussed in Section 12.5 of this report.

Figure 6 – Regional geology map of the Archangel Project. Details are described in the text.




9.3 Lithostratigraphy

The stratigraphy of the Archangel Project (Figure 7) is established from a combination of field

mapping, drilling and previous regional geological research. The best constraints on the stratigraphy of

the Archangel Project area come from deep diamond drilling in the Kay Tanda epithermal deposit in

combination with surface mapping over the deposit. The stratigraphy is less well known outside of the

Kay Tanda region, however the major volcano-stratigraphic groups are well defined regionally and the

contacts between the major stratigraphic packages can be located with reasonable confidence in the

broader Archangel Project area, despite local variations in facies that are typical of volcanic

successions. The oldest formation in the southern Batangas district is of Oligocene age, and most of the

stratigraphic succession ranges from Oligocene to Pliocene age. The volcano-sedimentary stratigraphy

in the region and the distribution of its formations are described below from oldest to youngest.

9.3.1 San Juan Formation - (Oligocene).

The San Juan Formation is the oldest stratigraphic formation in the vicinity of the Mindoro tenements

and is of Oligocene age. It is not exposed on the Archangel MPSA but occurs on the northern side of

the Lobo volcanic center, around the margins of the San Juan Batholith. The formation was previously

known as the San Juan Metavolcanics and Metasediments (Avila 1980) and good exposures occur

along the headwaters of Calumpit River NNE of Lobo. The metavolcanic rocks comprise fine- to

medium-grained basalt and andesite, with local exposures having a porphyritic texture. The

metavolcanics are associated with some indurated graywacke and fine grained ferruginous shale. The

San Juan Formation includes hornfels, slates, paraschists and marbles that developed by contact

metamorphism around quartz diorite intrusions that are primarily related to the San Juan Batholith (also

known as the Tolos Quartz Diorite).

9.3.2 San Juan Batholith - (Early Miocene)

The San Juan Batholith is an extensive quartz diorite body of batholith dimensions (20 km long by 12

km wide) which occurs along the northern side of the Laiya Fault Zone (Figure 5; top panel) in the San

Juan and Taysan regions. It is of Early Miocene age and intrudes the San Juan Metavolcanics. It has an

extensive metamorphic aureole that is developed in the San Juan Metavolcanics. The batholith was

previously named the Tolos Batholith by Wolfe et al, (1980). The batholith is a zoned body. Its central

portions comprise biotite-quartz-diorite which grade outward to hornblende diorite. Smaller apophyses

of the batholith have intruded into the surrounding metavolcanics along the margins of the batholith.

The margins of the batholith are foliated and gneissic in texture. The Taysan porphyry copper deposit

of Freeport McMoRan (formerly owned by Phelps Dodge) lies near the northwest margin of the San

Juan Batholith, although it is thought to be related to a younger, albeit related, generation of dacite

intrusives. Numerous areas along the southern margins of the San Juan Batholith exhibit malachite

staining, reflecting late-stage magmatic fluid exsolution from the crystallizing San Juan Batholith.




9.3.3 Post San Juan Dacite Dykes - (early Middle Miocene)

A post-mineral dacite dike is recorded intruding the San Juan Batholith. Dating of this dacite dyke

yielded a whole-rock 40K-39Ar age of 14.8 ± 0.9 Ma, equivalent to an early Middle Miocene age.

Several late-stage (post San Juan) intrusives are also recorded by MRL Gold in the vicinity of the El

Paso prospect, although these have not been dated.

9.3.4 Talahib Volcanic Sequence - (Middle Miocene)

The Talahib Andesite of Avila (1980) comprises a thick volcanic succession of andesite and dacite

flows and tuffs of Middle Miocene age. It is here termed the Talahib Volcanic Sequence due to the

presence of both andesites and dacites. It comprises large portions of the two (2) volcanic centers that

lie south and southwest of the San Juan Batholith and south of the Laiya Fault Zone, the Talahib

volcanic center and the Lobo volcanic center (Figure 5). The Talahib Volcanic Sequence is considered

equivalent to the Looc Volcanic Complex which occurs around the Pb-Ag-Sb mine at Looc, Nasugbu,

Batangas. The Looc Volcanic Complex at the Looc type locality comprises a 500m thick pyroclastic-

rich succession that is divided into three members, an andesitic pyroclastic member, andesitic

pyroclastic and dacitic pyroclastics and flows. In the Taysan and Lobo area the equivalent

chronostratigraphic formation is the Talahib Volcanic Sequence. The Looc Volcanic Complex and the

Talahib Volcanic Sequence are thus chronostratigraphic equivalents that erupted in central-west and

southeast Batangas respectively.

Tebar (1998) described the Talahib Andesite (TVS) as being variable in composition, and consisting of

basaltic andesite, pyroxene andesite, hornblende andesite and hornblende dacite. These variable

compositions reflect many episodes of volcanic eruption, and potentially from a composite volcanic

complex. The term “Talahib Volcanic Sequence” (TVS) is here adopted as a general lithologic

description for the entire suite of Talahib lavas and pyroclastics. The TVS is described by Aurelio and

Peña (2002) as being typically vesicular and amygdaloidal and exhibits flow banding. It includes fine-

grained porphyritic and medium-grained equigranular phases. The dacite and andesite flows are

intercalated with pyroclastic layers of broadly equivalent composition. The TVS is regionally

propylitic-altered with strong development of chlorite and epidote, a reflection of the numerous

intrusive bodies that penetrate the lower section of the two volcanic centers shown in Figure 5. In the

area around known mineralization the TVS exhibits increasingly acidic alteration assemblages (phyllic,

argillic and advanced argillic). The areas of hydrothermal alteration in the TVS at the Talahib and Lobo

volcanic centers, and the altered parts of the equivalent Looc Volcanic Complex near Nasugbu on the

western side of the Batangas Peninsula, both provide a maximum age constraint on the age of

mineralization, i.e. mineralization in both regions must be younger than the Middle Miocene age of the

altered host rocks. Wolfe et al. (1980) suggest the Talahib Andesite (TVS) is equivalent to the Banoy

Volcanics which they consider as mid to late Miocene age.

The TVS (andesite and dacite flows and tuffs) host the bulk of the mineralization at the Kay Tanda

prospect (Figures 7 and 9). The thickness of TVS intersections in drilling at Kay Tanda have exceeded

300 meters (e.g. section 10,100mN), although on the majority of drill-sections the thickness of

intersected volcanics of the TVS is between 100 to 200m before drill holes encounter cogenetic diorite

plus quartz diorite intrusions of the Balibago Diorite Complex and younger dacite intrusions at depth.




The Talahib Volcanic Sequence that is encountered in drilling at Kay Tanda comprises two (2) main

volcanic packages, a lower dacitic sequence and an overlying andesitic sequence. The lower dacitic

suite comprises an alternating sequence of porphyritic dacite flows, dacitic lithic tuff and dacitic ash-

lapilli tuff. The overlying andesitic suite comprises an alternating sequence of hornblende-andesite

flows, porphyritic andesite flows and andesitic ash-lapilli tuff. No unconformity is presently recognized

between them, although one could well exist. These two (2) volcanic packages that comprise the

Talahib in the Kay Tanda region are broadly arched around an antiformal core of intrusive diorite and

quartz diorite that comprises the Balibago Diorite Complex (Section 9.3.5).

The Talahib Volcanic Sequence comprises the bulk of outcrops that are exposed beneath younger

sedimentary and volcanic cover that lie at higher elevations northwest of the prospect. The lower suite

is composed dominantly of porphyritic dacite flows intercalated with dacitic lithic tuffs and ash flow

tuffs with minor andesitic flows. The upper section consists of massive hornblende-andesite flows with

intercalations of bedded pyroclastic tuffs (Buenavista, 1989). Drill-hole and surface mapping indicates

thickness of up to 365m.

9.3.5 Balibago Diorite Complex - (Middle Miocene?)

A series of diorite intrusions are abundant in the lower portions of many, if not most, of the Kay Tanda

drill cross-sections (see Appendix 1). The intrusive suite comprises a number of generations of diorite

stocks and dykes, the main variants being coarse equigranular diorite, diorite porphyry and quartz

diorite amongst others. The diorite bodies are encountered predominantly in the lower half of the drill

sections at Kay Tanda where they form a broad and crudely domal intrusive complex that has intruded

the Talahib Volcanic Sequence. This intrusive relationship places their age as syn-to-post Talahib, i.e.,

Middle to Late Miocene, and indicates that they cannot be equivalent to the San Juan Batholith whose

age is Lower Miocene. If the latter was the case, there would be an unconformity developed between

the Talahib Volcanic Sequence and the dome-like intrusive complex at Kay Tanda, a relationship that

has not been observed to date.

The Talahib Volcanic Sequence that is encountered in the Archangel region comprises near equal

volumes of andesitic and dacitic volcanic rocks (Section 9.3.4). The Balibago Diorite Complex

comprises intrusions of andesitic bulk composition (diorite/diorite porphyry) and dacitic bulk

composition (quartz diorite), so it is likely to be a cogenetic intrusive suite whose regional members

sourced the various flows and pyroclastic deposits that comprise the stacked Talahib dacite/andesite

sequence. This interpretation of cogenesis between the TVS and the Balibago Diorite Complex is

further supported by the observation that the TVS is overlain by a sedimentary package that spans a

substantial time-frame (Late Miocene to Pliocene) and which may contain one or more internal

unconformities. The apparent period of prolonged volcanic quiescence that followed cessation of

volcanic episodes that built the major part of the Talahib and Lobo volcanic edifices, suggest that the

Balibago Diorite Complex is likely to predate members of the sedimentary package. Consequently the

Balibago Diorite Complex is, for now, placed in the Middle to Late Miocene.




Figure 7 – Stratigraphic column for the Archangel Project area. The column is best constrained in the area of the

Kay Tanda and Pulang Lupa prospects.




Intrusives of the Balibago Diorite Complex outcrop at the Bootin, Ahit and Balibago prospects. A

quartz diorite body is exposed in the southwest part of the Archangel Project and is associated with Cu-

oxide staining and phyllosilicate alteration that may reflect an underlying porphyry system.

9.3.6 Dagatan Wacke - (Middle Miocene)

The Dagatan Wacke of Middle Miocene age comprises feldspathic and volcanic wackes and has a

thickness of around 20 meters. It is recorded from Taysan, Batangas, and along some road-cuts

between Dagatan and Lobo. It is uncertain if it occurs in the Archangel property or in the Kay Tanda

prospect, despite similar sedimentary sequences that overlie the Talahib Volcanic Sequence at Kay

Tanda. In the type section of the Dagatan Wacke, the base of the wacke rests unconformably on the

metavolcanic rocks of the San Juan Formation, thus reflecting a significant hiatus in deposition, or an

erosional unconformity in these regions between the Oligocene and the Middle Miocene.

At the Kay Tanda prospect, drilling has encountered a mixed sedimentary package that unconformably

overlies the Talahib Volcanic Sequence. It is uncertain at this point whether the lowermost subunits of

this sedimentary package are equivalent to the Dagatan Wacke or whether they are entirely part of

younger sedimentary packages (the Calatagan Formation and the Pinamucan Formation). This is

discussed in detail below.

9.3.7 Calatagan Formation - (Late Miocene to Early Pliocene)

The Calatagan Formation is described by Aurelio and Peña (2002) as comprising soft tuffaceous

marine siltstone and coralline limestone of Late Miocene to Early Pliocene age which overlies the

Talahib Andesite. It is described as massive, white to buff colored, soft and porous with abundant coral

fingers. It has previously been named the Calatagan Marl. The formation is equivalent to the Mapulo

Limestone (Avila 1980) that outcrops in barangay Mapulo in Taysan. It is also described in the upper

reaches of a large tributary of the Talahib and Laiya Rivers where it overlies the Talahib Volcanic

Sequence (Aurelio and Peña, 2002).

The sedimentary package that unconformably overlies the Talahib Volcanic Sequence at the Kay

Tanda prospect and which has been encountered in drilling in the upper portions of the northwestern

drillholes, comprises a complexly interlayered series of sandstones, siltstones and shales (variably

tuffaceous), limestone, conglomerate and andesitic lithic and ash tuffs. This package is in turn

unconformably overlain by the younger and relatively fresh Balibago Andesite. On section 9,900mN

up to four (4) thin lenses of limestone are identified within this sedimentary package whilst on section

9850mN two (2) relatively thick limestone lenses are identified in drill-cores, each up to 6-8 meters

thick. Limestones are not recorded in the Dagatan Wacke which is slightly older than the Calatagan,

nor are limestone lenses recorded in the clastic-dominated Pinamucan Formation which overlies the

Calatagan. The abundance of tuffaceous shale and siltstones together with limestone lenses, indicative

of a shallow marine setting, suggest that most of the sediment sequence on the Kay Tanda prospect

comprises the Calatagan Formation. Consequently, until such time as age-dating is undertaken on the

sedimentary sequence at Kay Tanda, it is assumed that the sedimentary sequence comprises

predominantly of the Calatagan Formation.




Petrographic descriptions of the clastic sediments from the northwest side of the drill-sections at Kay

Tanda reveal that they exhibit propylitic alteration, defined by post-depositional growth of albite,

chlorite, epidote and clay. This sedimentary package also outcrops in the Kay Tanda prospect area and

in the headwaters of Mestizo Creek (Figure 8). Several drill-holes that penetrate the sediment package

have encountered mineralization in permeable horizons within some of the intercalated limestone and

conglomerate units. Some of the conglomerate units are argillic altered ((MRL drill-hole log

descriptions). MRL geologists also describe zones of hydrothermal brecciation that are developed

above late-stage dacite intrusions, with local zones of brecciation and associated mineralization

penetrating the Mapulo Limestone unit of the Calatagan Formation. Mineralized intervals within this

sediment package are listed in Section 11.

Jasperoidal boulders that occur as float in the southwest part of the Archangel MPSA area may be more

highly-altered equivalents of limestone units within the Calatagan Formation. These observations,

together with the assay intervals documented in Section 11, suggest that ‘weak’ hydrothermal alteration

affected the Late Miocene to Early Pliocene Calatagan Formation.

Plate 1 - KTDH-10 (153.3m) Moderately silicified limestone within the Calatagan Formation. Clusters of pyrite

and arsenopyrite occur within the matrix to the brecciated limestone, with pyrite also as fine-grained

disseminations within the limestone clasts.




Plate 2 - KTDH 19 Hydrothermally silicified and brecciated limestone with intense pyrite-arsenopyrite

mineralization and subordinate chalcopyrite as clusters and disseminations.

Plate 3 - KTDH-10 (153.1m) Silicified and fractured-brecciated limestone with clusters of pyrite and

arsenopyrite lining and partly infilling some vugs.

9.3.8 Dacite Porphyry Intrusions - (Pliocene?)

A series of later dacite porphyry intrusions occur within members of the Balibago Diorite Complex on

most drill-sections at the Kay Tanda prospect. These tend to be dyke-like bodies of variable width and

which have an apophysis-like form. The dacitic porphyry intrusions also locally penetrate most of the

Talahib Volcanic Sequence (e.g. 9,400 mN and 10,100mN). On drill-sections 9300mN, 9400mN

(Appendix 1) 9,500mN and 9,600mN the dacite porphyry intrusions are exposed at the surface,




southeast of Pulang Lupa (see Figure 8). At one locality, hydrothermal breccias associated with one of

these late-stage dacite dykes are described by MRL geologists as penetrating in the overlying Calatagan

Formation where associated pyrite, arsenopyrite and chalcopyrite mineralization is observed in the Late

Miocene to Early Pliocene sediment cover.

The dacite intrusions are porphyritic with distinct phenocryst and groundmass textures. They are

distinguished from earlier members of the Balibago Diorite Complex, both in drill-core and percussion

chips, by the presence of coarse quartz-eye phenocrysts. The magmatic quartz ‘eyes’ are resorbed,

embayed and rounded phenocrysts under the microscope. The groundmass is typically hydrothermally-

altered with alteration obliterating the primary textures, making the dacite appear fine-grained. It

differs from the porphyritic dacite member of the Talahib Volcanic Sequence by a higher percentage of

clustered phenocrysts and resorbed quartz as well as a relict felsophyric groundmass, albeit often

masked by severe quartz-sericite alteration.

Other surface exposures of the intrusive are found at Malagundi Creek-1, along Kaliwa Creek, and in

the region of phyllic-altered and cupriferous porphyritic dacites that occur along a road cutting near the

Lumbangan prospect.

9.3.9 Balibago Andesite - (Pliocene)

In the region of Western Cavite, a Pliocene to Pleistocene volcanic center is named the Mataas na

Gulod caldera complex (Figure 4). It has a diameter measuring between 3 and 4.5 km and consists of

pyroclastic flows and lahars. The Mataas na Gulod belongs to the Bataan Volcanic Arc complex. Other

broadly coeval centers of volcanism lie south of the Mataas na Gulod, and include the small composite

cones of Mt. Palay-Palay, Mt. Caluya, Mt. Calilao and Mt. Batulao (Figure 4). Whole rock 40K-40Ar

ages of basalts and andesites of the Mataas na Gulod, Mt. Batulao and Mt. Cariliao centers range from

3.4 to 1.34 Ma (Aurelio and Peña, 2002).

The porphyritic andesite that unconformably overlies the Calatagan Formation at Kay Tanda comprises

a relatively unaltered porphyritic andesite unit that is here called the Balibago Andesite. On drill-

sections where it is present, it commonly occurs as erosional relics that are exposed at the surface and

which are up to ~50 meters thick. It consists of porphyritic andesite flows, volcanic flow breccias, ash

and lapilli tuffs, and base surge deposits. Whilst the correlation of this young andesite unit with other

documented stratigraphic units is not definitive, this unit is tentatively considered to be coeval with

other volcanics that are of similar age to the Maatas na Gulod Complex, as described by Aurelio and

Peña (2002) in Western Cavite. The volcanics that lie at depth within the Lobo River valley, above the

Calo IP anomaly, may (?) be equivalent to the Balibago Andesite and other correlatives of the Mataas

na Gulod Complex.




Plate 4 - Outcrop of the Balibago Andesite on the northern portion of the Pulang Lupa drill grid. The inset shows

the typical propylitic alteration of the andesite and lathes of hornblende phenocrysts.

9.3.10 Pinamucan Formation - (Pliocene)

As described in Aurelio and Peña (2002) ….. “The Pinamucan Formation was named by Avila (1980)

for the interbedded sequence of conglomerate, sandstone and shale that crop out in the vicinity of

upper Pinamucan, upper Calumpit and middle Lobo rivers, where they rest unconformably over the

Tolos Quartz Diorite and metavolcanic rocks of the San Juan Formation. The conglomerate is poorly

indurated but well sorted with pebbles of andesite, diorite and metasediments set in a sandy tuffaceous

matrix. The sandstone and shale are well bedded, light brown to grayish, poorly indurated and

tuffaceous. The upper horizon of this unit is intercalated with pyroclastic rocks designated by Avila

(1980) as the Lobo Agglomerate, which is here considered part of the Pinamucan. The formation is

assigned a Pliocene age”.

No limestone is described within the Pinamucan Formation, as is typical of the underlying Calatagan

Formation. The lower part of the Pinamucan Formation is dominated by clastic sediments whilst the

upper part is intercalated with the Lobo Agglomerate. Aurelio and Peña (2002) consider the Lobo

Agglomerate to be part of the Upper Pinamucan. It is a thick pile of coarse, andesitic, sub-aerial

volcanic breccia that is extensively developed as a young cover sequence at high elevations northwest

of the Kay Tanda prospect. If the Lobo Agglomerate forms the upper part of the Pinamucan Formation,

then it is of Pliocene age. It lies at higher elevations of the Lobo volcanic center, along the

northwestern margin of the Archangel MPSA (Figure 6). The clastic members of the Lower Pinamucan

Formation are sparse or absent from the Archangel MPSA area, whilst the upper part of the Pinamucan

(i.e. the Lobo Agglomerate) is extensively developed as a young cover in the northwest portion of the

Archangel MPSA.




The description provided by Aurelio and Peña (2002) for the conglomerate unit within the lower parts

of the Pinamucan Formation ……. “The conglomerate is poorly indurated but well sorted with pebbles

of andesite, diorite and metasediments set in a sandy tuffaceous matrix” ….. is very reminiscent of the

volcanic conglomerate whose clasts of andesitic volcanics are set in an ashy matrix and which host

remobilized exotic Cu mineralization in the Calo prospect area on an adjacent property of MRL.

9.3.11 Taysan Tuff - (Pleistocene)

The Taysan Tuff overlies all other volcanic rocks in the district. It overlies the thick Lobo Agglomerate

unit of the Upper Pinamucan (Aurelio and Peña 2002) and is a horizon of sub-aerial ash-fall vitric tuff

that is up to 20 meters thick (Plate 5). It is likely to be of Pleistocene age and to have erupted from one

of the large caldera-forming eruptions that lie along the extending Macolod corridor. The Taysan Tuff

is probably part of the widely-distributed Pleistocene Taal Tuff. Pre-historic ignimbrite-forming

eruptions sourced from the Lake Taal volcanic center have breached the Tagatay Ridge and have

spread pyroclastic flows over an area exceeding 2000 km2 towards Manila Bay in the north and

Balayan and Batangas Bays in the south.

Plate 5 - Coastal outcrop southwest of

Balibago where the Taysan Tuff (buff-

colored exposures) are overlain by

Pleistocene reefal limestone.

9.3.12 Reefal Limestone - (Pleistocene)

Unconformably overlying the Taysan Tuff is a Pleistocene reef limestone. This unit is observed in the

southwest portion of the Archangel Project area where it lies close to the present shoreline (Plate 5).




9.4 Geology of the Kay Tanda and Pulang Lupa Prospect Areas

9.4.1 Surface and Cross-Section Geology

The contiguous Kay Tanda and Pulang Lupa prospects are underlain, from oldest to youngest, by: a.

Lower Talahib Volcanic Sequence (a dacitic volcanic sequence); b. Upper Talahib Volcanic Sequence

(an andesitic volcanic sequence); c. multi-facies diorite and quartz diorite intrusives within the TVS; d.

dacite porphyry intrusives cross-cutting the TVS; e. Calatagan Formation; and f. Balibago Andesite

(possibly a time-equivalent of the Mataas na Gulod Volcanic Complex). The Lobo Agglomerate lies at

higher elevations northwest of the drill grid at Kay Tanda and Pulang Lupa (Figure 8).

The surface geology of the Pulang Lupa and Kay Tanda prospects is shown in Figure 8. Most of the

prospect area comprises outcropping members of the Talahib Volcanic Sequence. In the Pulang Lupa

prospect the lower dacitic part of the TVS outcrops due to the lower topographic elevation of this

region (Figure 8 and Plate 6). At the Kay Tanda prospect, the upper andesitic members of the TVS

outcrop due to its higher elevation. Hydrothermal breccias outcrop predominantly around the southeast

margin of the Kay Tanda prospect (Figure 8). Erosional remnants of the Calatagan Formation are

preserved only in the Kay Tanda region (Figure 8). The younger cover sequences that comprise the

Balibago Andesite and Lobo Agglomerate lie along the northwest side of the Pulang Lupa and Kay

Tanda prospects.




Figure 8 (overleaf) – Geology map of the Kay Tanda and Pulang Lupa prospect areas. The larger cluster of drill

holes to the east lie over Kay Tanda whilst the small cluster of holes to the west lie over Pulang Lupa. The south-

draining Malagundi Creek, between the two mineralized areas, cuts below the gently-dipping and grossly

stratabound mineralized horizon that linked the Pulang Lupa and Kay Tanda prior to erosion. Cover rocks of the

Balibago Andesite (light green) and Lobo Agglomerate (grey) lie to the northwest of the two epithermal

prospects. Hydrothermal breccias (dark purple) occur at surface in the southeast part of the Kay Tanda prospect.

Plate 6 - View looking westward from the

west margin of the Kay Tanda prospect

towards the Pulang Lupa prospect. The drill

access tracks on the knoll in the middle

distance lie on the Pulang Lupa prospect.

Figure 9 shows a representative drill cross-section through the Kay Tanda deposit and illustrates the

distribution of the main stratigraphic units and mineralized zones. Selections of other geological cross-

sections are attached as Appendix 1 to this report, and a detailed description of the mineralized zones is

presented in Section 11. As shown in this cross-section and in other cross-sections, the Talahib

Volcanic Sequence is the dominant rock type in the Kay Tanda prospect area. It is intruded by a series

of diorites, hornblende diorites and quartz diorites that comprise the Balibago Diorite Complex. The

Balibago Diorite Complex is significantly older and unrelated to the younger Balibago Andesite that

caps some portions of the Kay Tanda deposit. The Balibago Diorite Complex is in turn intruded by

bodies of dacite porphyry (Figure 9). The unconformably overlying volcano-sedimentary sequence that

comprises the Calatagan Formation occurs mostly on the northwest side of the cross-sections because

these areas are at higher elevations where the younger sediments are preserved.




Figure 9 - Cross-section 9900 mN at Kay Tanda, showing the principal stratigraphic units and their relationship

to zones of mineralization at Kay Tanda. Andesites and dacities of the Talahib Volcanic Sequence (lower dark

green horizon) are intruded by members of the Balibago Diorite Complex (dark pink; Upper Miocene). The

Talahib Volcanic Sequence is overlain unconformably by sediments of the Calatagan Formation (orange shading;

Upper Miocene to Lower Pliocene) which comprise tuffs, tuffaceous siltstones and shale with lesser limestone

and conglomerate lenses. Epithermal Au mineralization at Kay Tanda is believed to be related to a late generation

of probable Pliocene age dacite dykes and intrusions (light pink) that penetrate the Balibago Diorite Complex.

Hydrothermal breccias and mineralization associated with some of these dykes locally though rarely penetrate

into the Calatagan Formation. The Calatagan Formation is unconformably overlain by erosional relics of the post-

mineral Balibago Andesite.

In cross-section, the gross geometry of the volcanic and sedimentary units at Kay Tanda form a broad

antiform whose main axis trends northeast. This open antiformal flexure can be seen on section 9900

mN (Figure 9) and in many of the cross-sections that are presented in Appendix 1. Furthermore, in

geological plan (Figure 8), the ‘younger’ volcano-sedimentary sequences (Upper Talahib Volcanic

Sequence and younger sequences) occupy the northwest and southeast parts of the Kay Tanda area

where they outcrop on the limbs of the broad antiform/arch. The arch is cored by the Balibago Diorite

Complex and by the Lower Talahib Volcanic Sequence in the Pulang Lupa and west Kay Tanda area

(Figure 8). This prospect-scale, dome-like geometry may have been formed by the forceful intrusion of

the Upper Miocene Balibago Diorite Complex.

Hydrothermal breccias are relatively common in portions of the TVS, and are observed both in drill-

cores at Kay Tanda and in surface outcrop. At the surface, these hydrothermal breccias are best




observed on the southeast part of the Kay Tanda prospect where they form steep-sided and silicified

bluffs (Figure 8 and Plate 7) at high levels in the TVS.

Plate 7 - Hydrothermal breccias at the

Kay Tanda prospect. The silicified

breccias form a prominently outcropping

bluff on the southeast margin of the Kay

Tanda prospect.

9.4.2 Surface Alteration

The surface alteration zone at Kay Tanda (Figure 10) is exposed over the full area of the drill grid

(~600m x 600m), extends to the northeast and southwest along structural strike, and is also open to the

northwest under younger cover rocks. The rocks at the surface of the Kay Tanda deposit are mostly

argillic-altered, with local areas of advanced-argillic alteration associated with silicification. The

largest area of outcropping silica alteration is called Bagnasan (local term for sharpening material) and

is ~150m x 200m in area. The silicified rock is often vuggy and contains pyrophyllite ± diaspore ±

alunite. Sulfides are rare but iron-oxides are common within the zones of silicification and acid

alteration. XRD analysis on the altered rock revealed quartz and alunite are the main alteration minerals

while petrographic analysis identified pyrophyllite and diaspore associated with coarse quartz. Two

smaller (~20 x 50m) zones of massive silicified and brecciated rock occur within the larger Bagnasan

silica zone and these trend northeast. The silicified bodies form resistant cliffs that are heavily iron

stained (Plate 7). Two smaller areas of silicification are mapped at Kay Tanda to the north and

northwest of Bagnasan and contain old underground workings. The rocks within the workings are

highly silicified and cut by quartz veins. In hand specimen, the altered rock is buff-colored and non-

porous. Iron oxides are common. XRD and petrographic analysis also reveal quartz + alunite +

diaspore + pyrophyllite as secondary mineral assemblages.

The alteration at Pulang Lupa (local term for red earth) is ~200m x 200m in area and is centered on the

Pulang Lupa hill, local knoll that lies along a NNW-trending ridge (Plate 6). The surface rocks consist

of pervasive silica-clay alteration which is intensely hematitic and friable. In local areas the altered

rock is brecciated and cemented by silica. The secondary alteration minerals at Pulang Lupa comprise

dominantly illite and smectite with minor kaolinite. Northwest of Pulang Lupa, below the level of the

weakly silicified ridge-top, lies an exposure of silicified rock that is brecciated and cut by abundant




chalcedonic quartz veins and veinlets. The vein/veinlets are typically gray and contain fine pyrite,

minor galena, chalcocite and covellite. An area of old workings occurs in this region.

Figure 10 – Alteration map of the Kay Tanda and Pulang Lupa prospect areas. Alteration at surface is

dominated by illite, sericite and kaolinite as argillic alteration (cream and pink colored areas), with minor areas of

advanced argillic alteration (yellow). Areas of montmorillonite and chlorite (grey areas) are associated with

younger post-mineral volcanic rocks which have not been exposed to hydrothermal alteration.

9.4.3 Structures

From a regional perspective, the Archangel Project lies along a trend of closely spaced northeast-

trending lineaments (Figure 5) which demarcate and trend parallel to the coastline at Archangel. The

Kay Tanda-Pulang Lupa prospects and the Marita prospect are both located where these northeast-

trending (arc-normal) structures are cross-cut by an orthogonal set of northwest-trending (arc-parallel)

structures (Figure 11). Figure 12 shows a series of lineaments (inferred faults) that were interpreted by

the principal author from SRTM topographic data. Northeast and northwest trends are evident in the

DTM data-set, consistent with the dominant trend of regional structures that were also interpreted from

the same data-set but on a regional scale (Figure 5). In addition to these dominant northeast- and




northwest-trending structures, lesser structures are observed trending ENE, E-W and N-S (e.g.

Lumbangan Ridge may define an east-west structure).

Figure 11 – Location of the Kay Tanda and Marita

prospects along the regional NE Archangel structural

trend, and located at the intersection with NW-trending

cross-structures.

Figure 12 – Composite

diagram showing the

topography at Kay Tanda and

Pulang Lupa (SRTM: Shuttle

Radar Topographic Mission

data) over which is draped the

locations of drillholes (black

dots), lineaments interpreted

from the SRTM data (blue

lines), contours of “grams x

meters” from drillholes (solid

color shading), IP geophysical

anomaly at > 20 msecs at level

n=3 (cross-hachured areas)

and an outline that shows the

approximate extent of the

broader hydrothermal system

as defined by the dashed white

line.

A strong northeast trend is also defined by the zone of sericite alteration mapped by regional Pima

analyses on the Archangel property (Figure 13 and 44), which appears consistent with the trend of the

majority of surface quartz veins at Kay Tanda (Figure 14). Furthermore, Figure 19 (Section 11)

illustrates that early generations of epithermal quartz veins from diamond drill-holes at Kay Tanda are

biased towards a 045-090 degree strike.




Figure 13 – Color contour image of a spectral parameter (structurally-bound-water content of illite) derived

from Pima measurements on potassic white mica (illite-sericite) from surface samples and which is a proxy for

temperature of illite formation. Red areas are those of higher temperature illite whilst blue areas are lower

temperature illite. The image is draped with drill-holes (black dots), interpreted faults (blue lines), IP

chargeability anomalies at n=3 (>20 msecs, black cross-hachured areas), and selected alteration zones including

the envelope of illite-only alteration (white cross-hachured area). The high-temperature illites along the Kay

Tanda-Pulang Lupa trend (red-to-yellow shaded areas) broadly coincide with the ENE linear zone of illite-only

alteration (white outline) as defined by regional Pima sampling (see Figure 44). The high-temperature illite may

thus map out the ENE-orientated illite-dominant alteration envelope that surrounds the collective package of

deeper low-sulfidation quartz-basemetal veins and shallower low-sulfidation Au-Ag epithermal stockwork veins.

A strong NE-trending structural fabric was noted at Kay Tanda by the orientation of surface veins and

veinlets whose orientations were randomly recorded by MRL geologists in May 2006 (Figure 14).

Quartz veins and veinlets were observed to strike predominantly in the 045 to 090 degree sector and to

dip steeply to very steeply (60°-90o) to the NW and SE. A lesser set of orthogonal quartz veins, veinlets

and stringers were observed to strike NW-SE with steep dips to the NE and SW. On the basis of the

dominant NE orientation of quartz veins and veinlets observed at surface, a strong northeast-southwest

structural fabric was indicated and is developed within a dominantly argillic alteration zone that runs

through the Kay Tanda prospect.




Figure 14 – Stereonet projection of 49 quartz vein orientations measured randomly across accessible road

cutting on the Kay Tanda prospect in May 2006. The data show a dominant set of NE-striking quartz veins that

dip moderately to the northwest and southeast, and a sub-ordinate set of NW-striking quartz veins that dip

moderately to steeply northeast and southwest. The dominant set of NE-striking veins lie in an orientation that is

consistent with regional interpretations for NW-SE-directed extension associated with the Macolod extension

event that affected large areas of the Batangas peninsula. The dominant northeast vein trend is also consistent

with the strong northeast structural grain observed on the Archangel project.

A more detailed review of the structural orientations of different generations of fractures and vein sets

in the Kay Tanda and Pulang Lupa deposits is presented in Section 11 of this report.

10. DEPOSIT TYPES

The Batangas Projects, which include the original Lobo and Archangel Projects, are located near the

southern end of a well-mineralized volcanic belt that follows the Bataan or West Luzon Arc from the

southern Batangas region northward to Mt Pinatubo (Figures 3 and 4). This belt includes the Taysan

porphyry copper-gold deposit of Freeport McMoRan which lies adjacent to the Mindoro projects

(Figure 5), and also includes the Dizon, Tapian, San Antonio and Mogpog porphyry copper-gold

deposits further to the north. Several of these have been mined.

Within the tenement holdings of Mindoro Resources in the southern Batangas province there are

geological features that are indicative of the presence of Au or Cu-Au mineralizing centers. These

features include extensive IP chargeability anomalies, clusters of low- and high-sulfidation epithermal

prospects, extensive areas of hydrothermal alteration and zones of anomalous surface geochemistry in

soil, rock and stream samples. These features collectively indicate the presence of a series of magmatic




hydrothermal systems within the intrusive and volcanic rocks of the southern Batangas region. The

principal types of deposits that are the focus of exploration on the properties of Mindoro Resources in

the region include porphyry Cu-Au deposits, low- to intermediate- sulfidation epithermal deposits

including hydrothermal breccia-hosted, bulk stockwork and bonanza vein-style Au deposits, plus

structurally-controlled high-sulfidation epithermal Cu-Au vein systems. These types of deposits are

typically associated with intrusive centers of diorite to quartz diorite composition that are commonly

exposed and unroofed from the deeper parts of volcanic centers in island and continental volcanic arcs

(Figure 15).

Several mineralizing centers are recognized on the properties of Mindoro Resources, and the principal

targets for each area are summarized below:

1. El Paso: Porphyry Cu-Au systems and porphyry Cu-Mo ± Au systems.

2. Calo: Porphyry Cu-Au

+ Localized carbonate-replacement Cu-Au deposits.

+ Structurally-controlled high-sulfidation epithermal Cu-Au (Tawanak).

+ Breccia (diatreme)-hosted epithermal Au.

+ Exotic remobilized Cu deposits.

3. Pica: Porphyry Cu-Au

Lobo: Structurally-controlled high-sulfidation epithermal Cu-Au lodes.

South-West Breccia: Structurally-controlled hydrothermal breccia-hosted epithermal Au.

4. Archangel (Kay Tanda & Pulang Lupa): Intermediate sulfidation epithermal stockwork

veins + quartz-basemetal bonanza veins + deep lateral porphyry target.

5. Archangel (Balibago): Deep-seated porphyry Cu-Au.

6. Archangel (Marita): Deep-seated porphyry Cu-Au.

7. Archangel (Bootin): High-sulfidation epithermal Cu-Au.

8. Talahib: Porphyry Cu-Au.

The Archangel project contains a spectrum of mineralization styles that are characteristic of magmatic-

related Cu-Au mineralizing systems. These range from low- to intermediate sulfidation Au-Ag and

quartz-Au-basemetal mineralization at Kay Tanda and Pulang Lupa, to deep, extensive and potentially

porphyry-related alteration at depth below and lateral to Kay Tanda. A porphyry target near Kay Tanda

is associated with a regional ovoid IP chargeability anomaly. A second porphyry-epithermal target is

located at Marita (Figure 6), along strike northeast of Kay Tanda. A high-sulfidation epithermal

prospect is located at Bootin (Figure 6). Carbonate replacement mineralization is locally observed,

albeit weakly, on the upper northwest fringes of the Kay Tanda prospect.

Within the Archangel MPSA, the principal focus of drilling activity has been at the Kay Tanda and

Pulang Lupa prospects where Mindoro Resources Ltd have been delineating low-sulfidation Au-Ag

stockwork mineralization and overprinting quartz-Au-basemetal mineralization.




In the Archangel area, strong chargeability and resisitivity IP anomalies have been defined semi-

continuously along a northeast trend for over six kilometers. The two (2) strongest centers of IP

chargeability occur in the broader Kay Tanda prospect area and in the Marita prospect area. The

geophysical IP anomalies are over one kilometer wide in places and may represent the pyrite shells that

are typically developed around porphyry-related magmatic-hydrothermal intrusive centers. The IP data

may be mapping the presence of up to four (4) separate porphyry centers, one at depth lateral to Kay

Tanda (possibly to the northeast), another at depth below current drilling in the Ahit/Balibago area, a

third at depth below the Marita prospect and a fourth in the Bootin prospect area.

Figure 15 – Schematic representation of the main styles of mineralization that are encountered in intrusive

centers in magmatic volcanic arcs and their general position relative to centers of intrusion. These styles of

deposits are the focus of Mindoro Resources’ exploration in the Southern Batangas Mineral District (modified

after Sillitoe 1989).

There are two main styles of epithermal mineralization at Kay Tanda, an early and widely spaced

stockwork of low temperature epithermal quartz veins that are associated with Au-Ag mineralization

and a later event comprising narrow but locally bonanza grade quartz-Au-base metal (Zn>Pb>Cu)

veins, narrow hydrothermal breccias and mineralized pebble dykes that occur at deeper levels in the

system. The shallow portions of the Kay Tanda and Pulang Lupa prospects display features typical of

low-grade, bulk tonnage, low-sulfidation, epithermal, Au-Ag stockwork systems. These types of

deposits often comprise the shallow levels of structurally-controlled epithermal systems, where

confining pressures are released in proximity to the surface and extensive and widespread fracture

systems and stockworks are formed. Low temperature epithermal quartz stockworks and fracture arrays

at Kay Tanda overprint early and possibly porphyry-related hydrothermal breccias, and are themselves




overprinted at depth by anhydrite-gypsum veins that are typical of both porphyry systems in the

Philippines and of retrograde bi-carbonate fluids in epithermal systems.

Whilst the overall or general style and type of mineralization is discussed above in broad terms, a

detailed model for mineralization at Kay Tanda is given at the end of Section 11 following presentation

of a detailed account of the mineralization, mineral paragenesis and other characteristics that are a

necessary foundation for a detailed model for mineralization at Kay Tanda.

11. MINERALIZATION

There are four main epithermal prospects (Kay Tanda, Pulang Lupa, Lumbangan and Marita) plus

several minor prospects that are spatially arrayed along a regional NE- to ENE-trending structural and

argillic alteration zone (Figures 16 and 44) that extends for over 4 km along the Archangel property.

The area of altered and mineralized rocks in the southern portion of the Archangel property averages

about 1 km wide. In addition to the epithermal prospects, porphyry copper-gold related alteration and

fracture mineralization with Cu-oxide staining is exposed at lower elevations in several areas (Talon,

Japanese Tunnel, Piit Cliff, Balibago-Ahit Ridges, South Lumbangan and Northeast Lumbangan), and

porphyry-related alteration persists northwestward below the younger Lobo Agglomerate.

Figure 16 (overleaf) – Topography of the southern Archangel Project showing grams-per-metre grade contours

at Pulang Lupa and Kay Tanda (solid color contours), an ENE-trending zone of illite alteration defined by

regional Pima mapping (white hachured area and yellow arrows), the distribution of IP anomalism at depth slice

N=4 (black hachured area), and inferred outline of a regional porphyry target defined by the pyrite shell with its

IP signature (triple black line). Cores of the IP anomaly appear to display elements that are influenced by

northeast-trending structural lineaments. The Pulang Lupa – Kay Tanda – South Lumbangan – North Lumbangan

area extends from around 9300mN to 10800mN, an along strike distance of 1.5 km. The zone of argillic (illite)

alteration extends further to the ENE towards the Marita prospect and to the WSW towards the Talon area before

trending beneath younger cover rocks.




11.1 Kay Tanda – Pulang Lupa

Geological mapping, reconnaissance rock sampling and drilling has traced mineralization in the

broader Kay Tanda region over a distance of ~1.5 kilometers (Figure 16). Mineralization extends from

Pulang Lupa in the WSW through to Kay Tanda where extensive gold-silver mineralization has been

drill-intersected (Table 10) and then to South Lumbangan and North Lumbangan where surface

trenching has indicated additional mineralization at surface. Mineralization appears to be open to the

northeast towards the Marita prospect and to the northwest under the younger cover rocks.

Epithermal mineralization at Kay Tanda and Pulang Lupa occurs extensively at the higher elevations of

two erosion-resistant hills that lie along the southeast-dipping flank of the Lobo volcanic centre (Figure

16). The erosion-resistant hills are cored by the Balibago Intrusive Complex. The broad zone of

epithermal mineralization that has been defined by drilling at Kay Tanda and Pulang Lupa lies within a

grossly strata-bound package of volcanic rocks that are arched over the two connected intrusive

centers, one below Pulang Lupa and the other below Kay Tanda.

Two main styles of epithermal mineralization are identified at Kay Tanda and Pulang Lupa. Low

sulfidation quartz-Au-Ag mineralization occurs within veins, stockworks and hydrothermal breccias

that are best mineralized within the fractured Talahib Volcanic Sequence. The latter forms the volcanic

carapace over the Balibago Intrusive Complex. Younger low-sulfidation quartz-carbonate-basemetal

(Au-Ag-Zn-Pb-Cu) mineralization with local bonanza Au grades form brittle vein and breccia systems




that cross-cut the Talahib Volcanic Sequence and the underlying Balibago Intrusive Complex. It also

forms minor replacement mineralization within limestone units of the otherwise barren overlying

Calatagan Formation.

The main mineralized zone at Kay Tanda comprises an extensive zone of brittle quartz stockwork veins

that comprise low-temperature chalcedonic and colloform silica, quartz-pyrite veins, pyrite stringers,

quartz-hematite (oxidized) veins and fine fractures. These stockworks are surrounded by intensely

argillized (quartz-illite-smectite altered) wall-rocks that record the passage of mildly acidic fluids

during mineralization. The zone of stockworking is grossly stratabound in overall form, and occurs

predominantly within the Talahib Volcanic Sequence that is draped over the intrusive rocks of the

Balibago Intrusive Complex. The stockwork veins locally overprint the upper portions of the Balibago

Intrusive Complex, though to a lesser degree. Individual veins within the stockwork systems are

strongly influenced by northeast to ENE-trending structures. Mineralization associated with these

stockwork fracture and vein systems comprises quartz-Au-Ag mineralization and is characterized by a

lack of base-metals. The stockwork veins overprint minor high-level relics of advanced-argillic

alteration at the surface. At surface and in the shallow oxidized intervals these argillic-altered rocks are

friable and porous due to surface oxidation. While Au grades are generally low and highly variable

within this early phase of epithermal mineralization (typically 0.2 to 0.8 g/t Au), locally grades of 1-30

g/t Au occur in some veined sections (Figure 25). Where these argillized rocks are oxidized there tends

to be a ~2-fold increase in the Au-grade due to oxidation enrichment.

The lateral extent of quartz-Au-Ag epithermal stockwork mineralization that has been encountered by

drilling to date is ~500m x 500m at Kay Tanda and ~200m x 300m at Pulang Lupa. The thickness of

the thick arched zone of stockwork veining within the Talahib Volcanic Sequence is of the order of 50-

100m, thinner over the highest parts of the Kay Tanda prospect due to erosion and thicker on the flanks

of the intrusive dome, especially on the northwest side due to preservation by younger cover rocks. The

zones of stockwork mineralization at Kay Tanda and Pulang Lupa may have originally formed a semi-

contiguous ‘sheet’ between the two prospects, with the central portions of weaker stockwork

mineralization being largely eroded away to leave the 2 vestiges of more intense stockworking at Kay

Tanda and Pulang Lupa. Grade continuity is good within this zone at a 0.1 to 0.2 g/t Au cut-off, but at

higher grade cut-offs the continuity decreases as the zones break-up into a series of isolated pods that

lie within the low-grade mineralized envelope. These stockwork vein systems, their textures and their

structural orientations are described in Sections 11.2.4 and 11.2.5 below.

A younger style of mineralization is encountered at slightly greater depths within the sequence at Kay

Tanda and Pulang Lupa. It comprises narrow vein and breccia lodes comprising quartz-, carbonate- and

anhydrite-basemetal veins, mineralized hydrothermal breccias and local tuffisite breccias. Native gold

and associated bonanza Au grades occur in association with this basemetal mineralization event. The

basemetal-bearing veins tend to occur deeper in the profile, and commonly overprint members of the

Balibago Intrusive Complex. Bonanza Au grades within these basemetal-bearing lodes peak at 246.76

g/t Au and 12.8% Zn. They are best developed in the Kay Tanda area with the strongest development

of this style of mineralization occurring in the northeast, north and northwest portions of the Kay Tanda

prospect. These basemetal-bearing bonanza Au vein systems, their textures and their structural

orientations are described in Sections 11.2.6/7/8 below.




11.2 Paragenetic Stages of the Kay Tanda Deposit

The identified paragenetic stages of veins at the Kay Tanda and Pulang Lupa are listed in Table 3.




11.2.1 Stage 1a

Intrusion of Balibago Intrusive Complex, Emplacement of Coarse Mosaic and Rotational

Hydrothermal Breccias, Sericite-Carbonate-Chlorite-Silica Alteration and Qtz ± Mo ± Cpy ± Bn

Veins

The earliest recognized stages of development of the Kay Tanda prospect are the emplacement of a

number of large hydrothermal breccia bodies that cross-cut the Talahib Volcanic Sequence. They are

exposed both at surface in the southeast portion of the Kay Tanda prospect (Figure 8) and are also

recognized in several diamond drill-holes (e.g. Figure 11). They comprise both mosaic breccias and

coarse rotational hydrothermal breccias that are interpreted to have formed within steep breccia pipes

that developed above the Balibago Intrusive Complex as it was emplaced into the Talahib Volcanic

Sequence. In some drill-core (e.g. KTDH-04) the breccias are locally observed to be transitional from

tightly fractured wall-rocks to progressive dilation of fragments along the margins of the breccia to

subsequent fluidization within the breccia body wherein clasts are increasingly rotated and fragmented.

The typical alteration that is documented in these breccia bodies at depth comprises chlorite-carbonate-

sericite alteration (SCC variant; Plate 8). Examples of these early hydrothermal breccias are plotted on

sections 9750, 9800, 9850 and 10100mN (see Appendix 1). The emplacement of these breccia bodies is

likely to have been synchronous with the emplacement of the Balibago Intrusive Complex.

At deeper levels of the Kay Tanda deposit these breccias are typically chlorite-carbonate altered (Plate

9) but at shallow levels they are increasingly sericite-silica altered where they are overprinted by Stage

2 advanced-argillic alteration and Stage 3 argillic alteration, silicification and low-sulfidation

epithermal vein stockworks (Plate 10).

Plate 8 – Stage 1a altered and fluidized hydrothermal breccia from drillhole KTDH-10. Alteration comprises

pervasive chlorite-sericite-carbonate.




Plate 9 – Stage 1a monomict hydrothermal breccia from drill-hole KTDH-04. Intense chlorite alteration occurs

within the matrix and the clasts are increasingly separated and rotated by high fluid pressures.

Plate 10 – Stage 1a silicified hydrothermal breccia at surface (see outcrop in Plate 7) which is cross-cut by Stage

3b chalcedonic quartz stockwork veins and is intensely silicified by the same Stage 3 mineralization event. The

Stage 1 breccia and Stage 3 chalcedonic stockwork are subsequently overprinted by a younger phase of

hydrothermal brecciation.




11.2.2 Stage 1b

Widespread fracturing of the carapace to the Balibago Intrusive Complex, and associated

Propylitic Alteration and Generation of Chlorite-Clay Fractures.

As a result of the emplacement of the Balibago Intrusive Complex (Stage 1a), the overlying volcanic

carapace of the Talahib Volcanic Sequence was strongly fractured. This event generated a pervasive

generation of fine hairline fracture networks within the volcanic sequence and which are characterized

by chlorite-clay ± pyrite alteration along the fractures. Plates 11 to 13 show examples of these fracture

networks and their overprinting by Stage 3 and Stage 4 veins. These fractures are interpreted to have

formed initially during explosive releases of pressure that are associated with volume expansion

associated with second boiling, and by the subsequent cooling and thermal contraction of the brittle

volcanic (dacitic and andesitic) carapace to the Balibago Intrusive Complex. The chlorite and clay

alteration of these fractures may have formed during the prograde and retrograde stages of the ambient

thermal regime respectively. The fractures are often pyritic, a common occurrence around intrusive

stocks.

Plate 11 – Chlorite-clay-lined fractures developed in a porphyritic dacite flow (dVt) of the lower Talahib

Volcanic Sequence. The chlorite-clay fractures are cross-cut by Stage 3 quartz-sericite-pyrite fractures (yellow

arrows).




Plate 12 – KTDH-06 (166.55m) Chlorite-clay-lined fractures developed in a bedded (reworked?) volcanic lithic

tuff within the lower Talahib Volcanic Sequence (dVt).

Plate 13 – KTDH-14 (239.80m) – Intrusive diorite (Idio). Chlorite-clay veinlet (Stage 1b) overprinted by Stage

3 branching quartz-pyrite veinlets. The Stage 3 veins have a core infill of Stage 4a calcite.




Figure 17 – Stereographic projection of Stage 1b chlorite-clay fractures (n=51) as measured from diamond drill

core. (Left) – great circles, (Centre) – poles to great circles, (Right) – rose plot of strike directions. These chlorite-

clay fractures display the “most-preferred” or tightest orientation distribution of all the documented generations of

fractures and veins at Kay Tanda because they were the earliest set of fractures to form within the otherwise

unfractured host rocks. They probably formed during cooling of the Balibago Intrusive Complex under an

ambient stress regime that generated 2 principal conjugate clusters of fracture planes. Strong preferred strike

directions for these fractures are 025° and 295°.

The Stage 1b fractures are pervasively developed in the Talahib Volcanic Sequence. In the lower parts

of the volcanic sequence below the upper zone of argillic alteration, the fractures are typically chloritic.

Chlorite was their original mineralogy and is well preserved where they have not been overprinted by

argillic alteration of the Stage 3 epithermal system which is most pronounced at shallower levels at Kay

Tanda.

Stereographic projections of the orientations of chlorite-clay fractures as measured in oriented drill core

(Figure 17) reveal a strong preferred orientation of this earliest fracture generation, with two (2)

predominant sets, one striking at 295° and dipping at ~30-45° NNE whilst the other striking at 025°

and dipping at ~70° WNW. The chlorite-clay fractures display the smallest or tightest range in

preferred strike orientation of all the documented generations of fractures and veins at Kay Tanda. This

is most likely because they developed at an early stage in coherent rocks which where not heavily pre-

fractured, and so they developed in strict accordance with the governing stress orientation at the time

of the thermal contraction of the Balibago Intrusive (Diorite) Complex. No known economic

mineralization is associated with this event, although there is some paragenetic evidence for an early

stage of quartz-molybdenite veining around this time (Figure 23).




11.2.3 STAGE 2 - (1st Stage of Epithermal event – Acid Fluids)

Advanced Argillic Alteration

A younger epithermal mineralization event substantially postdates Stages 1a and 1b of the Middle to

Upper Miocene Balibago porphyry system. This epithermal event comprised three (3) main sub-stages

of development (Stage 2 [described in this section], Stages 3a-3b and Stages 4a-4b-5).

Whilst no veins are documented for the earliest stage (Stage 2), petrographic studies by Compsti et al.,

(2007) record a small and discrete area of advanced argillic alteration that occurs at the surface along

the eastern side of the Kay Tanda prospect. Petrographic descriptions record the presence of diaspore

granules, very fine-grained felted masses of pyrophyllite and coarse-grained lathes of matted alunite. In

several examples the pyrophyllite is described as being overprinted by fine-grained illite (i.e. Stage 3

argillic alteration). These acid mineral assemblages are described as occurring in hydrothermal

breccias, in fragmental tuffs within the Upper Talahib and in porphyritic andesites. The descriptive

accounts of the alunite and diaspore as coarse and matted lathes and as granules respectively, and that

are both overprinted by illite alteration, suggest that they are of hypogene origin. Hence they may be

related to initial or early degassing of the late-stage dacite porphyry stocks and dykes that are observed

on the Kay Tanda cross-sections cutting across the Balibago Intrusive Complex.

The presence of this acid mineral assemblage can be seen by the detailed Pima mapping on cross-

section 9800mN (Figure 12). It is observed that the acid alteration assemblages are restricted to a

relatively small and flat-lying zone that immediately underlies the young Balibago Andesite which is

encountered at surface in holes KT-61, -02 and -12 (Figure 11). Such a flat-tabular geometry is

common for local zones of steam-heated acid alteration or for generation of acidic conditions during

oxidative weathering of sulfide-rich ores. Whilst alunite and kaolinite can form at low temperature

from acidic fluids, diaspore and pyrophyllite require higher temperatures unless the silica activity is

very high. The presence of abundant pyrophyllite and diaspore and coarse alunite, despite the restricted

area of occurrence, suggests that a hypogene origin may be required to explain the acidic mineralogy.

However, ongoing work needs to be undertaken to clarify this, especially since no high-sulfidation

mineralization (specifically viz. a viz. enargite-luzonite) has been identified at Kay Tanda to date.

11.2.4 STAGE 3a - (2nd

Stage of Epithermal event – Weakly Acidic Fluids)

Illite-Sericite ± Pyrite ± Quartz Fractures and Veinlets

Following minor (?) and localized (?) advanced-argillic alteration of Stage 2 which may be related to

early volatile release from the dacite porphyry stocks and dykes, sericitization and illite alteration of the

pervasive Stage 1b chlorite and chlorite-clay microfractures occurred due to commencement of heated

groundwater circulation. The amounts of silica deposited increased over time. This occurred to the

extent that the early Stage 1b (porphyry-related) fractures became exclusively illite-

sericite±pyrite±quartz altered at the expense of Stage 1b chlorite.




Plate 14 – KTDH-04 (25-30m) Stage 3a sericite-quartz-pyrite fractures and associated sericite alteration of wall-

rocks. In areas of intense fracturing the sericite alteration is pervasive while in area of sparse fracturing, or in

areas of incipient sericitization of pre-existing Stage 1b chlorite-clay fractures, the wall-rock alteration largely

retains its chloritic character due to a dearth of overprinting sericite.

Figure 18 illustrates that the strike of the illite-sericite fractures in drill core are preferentially oriented

at 295° and 340°, mostly within the NW and SE quadrants. The 295° striking set of fractures that dip at

~45° NNE is common to both Stage 1b and Stage 3a (compare Figures 17 and 18). There is probably

because pre-existing Stage 1b fractures (295° set) were reactivated and altered during the subsequent

early stages of the epithermal mineralization. The argillization of Stage 1b chlorite-clay micro-fractures

during Stage 3a is likely to have occurred during the early stages of establishment of a geothermal

system that evolved following Stage 2 degassing of dacite porphyry stocks and attendant advanced-

argillic alteration.

Figure 18 – Stereographic projection of Stage 3a sericite ± quartz fractures (n=46) as measured from diamond

drill core. (Left) – great circles, (Centre) – poles to great circles, (Right) – rose plot of strike directions. It is

observed that to a significant extent the orientations of the 2 sets of great circles from the Stage 1b chlorite-clay

fractures (Figure 17) are observed also in plotted great circles of the Stage 3a sericite-quartz fractures above, as

well as some additional sets. Most fractures strike in the NW-SE quadrant which is in marked contrast to the

subsequent Stage 3b quartz veins which strike in the NE quadrant (Figure 19).




11.2.5 STAGE 3b - (2nd

Stage of Epithermal event continued – Weakly Acidic Fluids)

Chalcedonic and Coxcomb Quartz and Quartz-Pyrite Veins + Pyrite stringers

Stage 3b represents the principal low-sulfidation epithermal Au-Ag mineralization event on the Kay

Tanda and Pulang Lupa prospects. It is an evolution of the processes in Stage 3a discussed above. The

event is marked by the widespread development of vein stockworks that are dominated by low-

temperature banded and colloform (commonly chalcedonic) quartz veins, quartz-pyrite veins and pyrite

stringer veins. These veins comprise predominantly of low-temperature silica at shallow levels of the

deposit but show increasingly coarser and coxcomb textures at deeper levels. The stockwork veins are

generally associated with areas of strong argillic alteration (predominantly illite). In addition to quartz,

quartz-pyrite and pyrite veins of Stage 3b, there are also quartz-hematite veins at Kay Tanda and

Pulang Lupa that are largely confined to zones closer to the current topographic surface. They are

interpreted to represent an oxidized quartz-pyrite vein assemblage of Stage 3b.

Plate 15 and 16 show the intensity of argillic alteration that is developed around fractures and

stockwork veins. Plate 17 and 18 show the intensity of fractures and stockworks at the surface of the

Kay Tanda and Pulang Lupa prospects and which typify Stage 3a mineralization. Plates 19 to 26 show

the morphological characteristics of these low-sulfidation epithermal veins and breccias.

Plates 15 and 16 – Surface samples of oxidized limonitic and hematitic fractures within intensely argillized

host rocks of the Upper Talahib Volcanic Sequence. The precursor fractures were quartz-pyrite and pyrite

fractures and stringers which are oxidized to Fe-oxide assemblages. The rock exhibits a gritty friable and porous

texture indicative of a substantial granular quartz component amongst the illite clay.




Plates 17 and 18 – Surface outcrops of intensely fractured and argillic-altered volcanics that characterize large

areas of the surface exposure of the Kay Tanda and Pulang Lupa prospects. The photograph on the left comes

from a large excavation – “Chinese Workings” – that occur on the Kay Tanda prospect area whilst the photograph

on the right comes from a drill cutting on the Pulang Lupa prospect.

Plate 19 – Surface outcrop of cherty silica in low-angle hydro-fracture veins that are developed in argillized

wall-rock in the road cutting to drill site KTDH-04.




Plate 20 – Outcrop displaying bladed calcite textures in a quartz stockwork vein, with calcite pseudomorphed by

cherty silica. Such textures are good evidence of boiling of hydrothermal fluids.

Plate 21 – Surface outcrop of a high-angle, 10-cm-wide, banded cherty quartz vein cross-cutting an argillized

Stage 1 hydrothermal breccia.




Plate 22 – Surface sample of an oxidized and colloform-banded quartz-pyrite vein from the surface of the Kay

Tanda prospect.

Plate 23 – KTDH-04 (15.8m) – Stockwork of pyrite-quartz stringers and quartz-pyrite veins within argillized

andesites of the Upper Talahib Volcanic Sequence.




Plate 24 – KTDH-04 (15.8m) – Stockwork of pyrite-quartz stringers and quartz-pyrite veins within argillized

andesites of the Upper Talahib Volcanic Sequence.

Plate 25 – Oxidized Stage 3b chalcedony vein in argillized host rocks from the shallow portions of drill-hole

KTDH-04 (Kay Tanda).




Plate 26 – Oxidized Stage 3b hydrothermal breccia with clasts of colloform, crustiform, low-temperature silica

and silica flooding.

The pervasive argillic alteration that is shown in Plates 15 to 25 above form part of the alteration halo

to Stage 3a and 3b fracture and vein stockworks. This argillic halo is observed on the scale of

individual veins and fracture zones (e.g. Plate 14) and expands to encapsulate the entire rock where the

stock-work veins and fractures are sufficiently numerous and close-spaced. The argillic alteration zone

in the upper portions of the Kay Tanda and Pulang Lupa prospects forms part of an over 4-km-long

northeast-trending zone of argillic alteration that is defined by Pima surveys (Figure 44). This zone of

argillic alteration is believed to be controlled at a regional scale by NE-trending structures.




Figure 19 – Stereographic projection of Stage 3b quartz veins (n=162) and pyrite stringers (n=59) as measured

from diamond drill core. (Left) – great circles, (Centre) – poles to great circles, (Right) – rose plot of strike

directions. The plot of the quartz veins show two (2) very strongly oriented strike directions to 070° and to 025°.

The strong clustering of the 2 quartz vein strike directions and their strike orientation which is in the opposite

quadrant (near orthogonal) to those of Stage 1b and Stage 3a, suggest that the Stage 3b mineralization event

occurred as the result of a renewed episode of faulting/fracturing that was oriented in a northeast direction. Pyrite

stringers, which are also part of the Stage 3b mineralization event, also display a most veins striking in the NE-

SW quadrants, with a peak at around 070°.

Support for the interpretation that northeast-trending structures were important for the generation of the

Stage 3b veins at Kay Tanda include NE-trending surface lineaments (Figure 16), the NE trend of

argillic alteration in surface Pima data (Figures 44), surface vein data (Figure 14), the regional NE

trend of IP anomalies (Figure 39), and the orientation of Stage 3b quartz veins measured in diamond

drill core from the Kay Tanda and Pulang Lupa (Figure 19 above). The strike of quartz veins and pyrite

stringers in diamond drilling are heavily skewed towards the northeast, with the quartz vein data-set

showing two (2) pronounced peaks in strike directions at 025° and at 070° (Figure 19). The switch

from northwest-striking fracture systems in Stage 1b and Stage 3a (Figures 17 and 18) through to




northeast-striking vein systems during Stage 3b (Figure 19) is interpreted to reflect an extensional

pulse at this time (Section 9.1.2). The northeast structures that were generated by this extension event

facilitated the development of a structurally-controlled geothermal system along the ENE-trending

corridor that is coincident with the 4-km-long zone of argillic alteration at Archangel (Figure 44).

Significant but generally low-grade Au-Ag mineralization is associated with Stage 3b event. The larger

portion of the low-grade resource is believed to be related to these to these intense stockwork systems.

11.2.6 STAGE 4a - (3rd

Stage of Epithermal event – Neutral Fluids Fluids)

Carbonate Veining

Stage 4a represents the commencement of a further evolution in the epithermal mineralization which

encompasses paragenetic stages 4a, 4b and 5. This stage of epithermal mineralization forms the start of

a quartz-carbonate-basemetal-sulfate epithermal event which is different in several aspects relative to

the earlier Stage 3a-3b low-sulfidation epithermal Au-Ag event. It is characterized by an occurrence

deeper in the mineralizing system, a younger timing, an association with fluids which are more neutral

in composition as evidence by a lack or paucity of sericite-illite alteration, the occurrence of significant

base-metals (sphalerite > galena > chalcopyrite), Mn- and Fe-carbonate, late anhydrite and locally

bonanza gold grades associated with native gold.

The carbonate veins vary from Mn-rich varieties (pink-colored rhodochrosite) to possibly Fe-rich

varieties (tan-colored ankerite?). This stage of mineralization is documented by MRL geologists as

comprising carbonate ± zeolite (inesite/Ca-Mn zeolite) ± rhodochrosite ± illite/sericite ± sphalerite ±

galena ± chalcopyrite ± pyrite ± epidote ± tremolite ± chlorite. The carbonate veins are encountered

mostly near and around the upper portions of the diorite and quartz diorite intrusions of the Balibago

Intrusive Complex. Plates 27 and 28 show Fe-rich varieties of carbonate which are associated with

galena and sphalerite mineralization whilst Plates 29 and 30 show Mn-carbonate (rhodochrosite) veins

which post-date quartz-basemetal veins and pre-date anhydrite (gypsum) veins. The carbonate-

basemetal veins of Stage 4a are a relatively minor component of the overall basemetal mineralizing

event which is dominated by quartz-basemetal veins of Stage 4b.




Figure 20 – Stereographic projection of Stage 4a carbonate ± basemetal veins (n=34) as measured from

diamond drill core. The plot of the great circles (left) and poles (centre) for the carbonate veins indicate a fairly

random distribution of orientations compared to the Stage 3b quartz veins. This likely reflects the progressively

increasing degree of fracturing of the Talahib Volcanic Sequence. NW-SE strikes were common in Stages 1b and

3a (Figures 17 and 18) while near orthogonal NE-SW strikes were predominant in Stage 3b (Figure 19). As the

volcanic carapace became increasingly fractured during each succeeding stage of mineralization, the later

mineralizing stages (4a, 4b and 5) formed within increasingly pre-fractured host-rocks. Consequently the veins

associated with the later mineralizing stages (Stages 4a, 4b and 5) appear to take on a myriad of orientations due

to the pre-existing fractured nature of the host-rocks. Figures 21 and 22 also reflect this transition from more

tightly oriented veins associated with Stages 1b, 3a and 3b to increasingly randomly oriented veins in Stages 4a,

4b and 5.

Plate 27 – Fe-Carbonate + basemetal (sphalerite) vein cross-cutting an earlier zone of quartz-sericite alteration

within a diorite intrusive in hole KTDH-10.




Plate 28 – Fe-Carbonate with galena and anhydrite veining cross-cutting SCC-altered rocks.

Plate 29 – Mn-Carbonate (rhodocrosite) veining cross-cutting a diorite in KTDH-10, with Mn-carbonate

alteration defining a selvedge around the vein. The carbonate vein is split by a younger anhydrite-gypsum vein

along its axis.

Plate 30 – Mn-Carbonate (rhodocrosite) veining cross-cutting an earlier quartz-basemetal (sphalerite-galena)

vein (KTDH-10).




11.2.7 STAGE 4b - (3rd

Stage of Epithermal event continued – Neutral Fluids)

Quartz-Basemetal Veining

Stage 4b is the main basemetal mineralizing event at Kay Tanda. The basemetal veins are dominated

by quartz which is typically coarse grained, though locally the gangue is comprised of quartz and

carbonate. The base-metals comprise sphalerite, galena and chalcopyrite in decreasing order of

abundance and native gold has been observed by the author in several locations in drillhole KTDH-04.

Sphalerite is typically overgrown by galena within the veins whilst galena is overprinted by

chalcopyrite in late fractures in galena and as rims, a progression which suggests basemetal deposition

in a temporally prograding temperature regime. The quartz-basemetal veins typically lack argillic

alteration haloes and are more often than not developed in chloritic host rocks. This suggests that the

fluids from which the quartz basemetal veins precipitated were probably neutral in composition and

likely to have been in equilibrium with the host rocks. The basemetal veins in Stage 4b fall into four 4

categories that were recorded in the overprinting database discussed in Figure 26. These are basemetal

veins in which (Sph+Gal)>Cpy, basemetal veins in which Cpy>(Sph+Gal), Qtz-basemetal veins and

Cpy±Py stringers. The high base-metal component of these veins suggests that they precipitated from

relatively saline fluids.

Plates 31 to 37 show representative samples of these Stage 4b quartz-basemetal veins while Plates 38

and 39 show the occurrence of coarse native gold (Au) in zones of strong basemetal mineralization.

The orientations of base-metal veins in drill core from Kay Tanda and Pulang Lupa have wide-ranging

orientations (Figure 21), although there is a slight bias to the strike direction of pre-existing vein and

fracture sets (025°, 070° and 295°). Overall however, the basemetal veins have a relatively random

distribution consistent with the observations for the Stage 4a carbonate ± base-metal veins (Figure 20).

Figure 21 – Stereographic projection of Stage 4b quartz-basemetal veins (n=129) as measured from diamond

drill core. The plot of the great circles (left) and poles (centre) for the carbonate veins indicate a more random

distribution of orientations compared to the Stage 3b quartz veins. This may reflect the opening of many pre-

existing fractures within the sequence as well as the generation of new fractures.




Plate 31 – Quartz-sphalerite + trace galena veining in fractured and chlorite-altered wall-rocks in KTDH-04.

Base-metals fill late druzy quartz-lined cavities within the quartz vein.

Plate 32 – Sphalerite and galena replacing the matrix to a hydrothermal breccia.




Plate 33 – Sphalerite (tan) and galena (grey) clots disseminated within a sericite-altered hydrothermal breccia in

drill hole KTDH-04.

Plate 34 – Sphalerite (tan) and galena (grey) clots disseminated within a finely comminuted sericite-chlorite-

altered hydrothermal breccia in drill hole KTDH-04.




Plate 35 – KTDH-04 (202.50m) Multiple episodes of overprinting hydrothermal breccia during Stage 4b

basemetal mineralization (0.18 g/t Au).

Plate 36 – (KTDH-04) Massive galena vein (Stage 4b).




Plate 37 – (KTDH-19) Stage 4b Quartz-galena-sphalerite-pyrite vein in chlorite-altered diorite cross-cut by

Stage 5 gypsum vein.

Some of the best intersections of bonanza gold and basemetal mineralization of Stage 4b were

encountered in drill hole KTDH-04 where several sub-parallel and steeply inclined zones of

structurally-controlled mineralization occur. These zones general comprise multiple generations of

variably silicified and sericite-altered hydrothermal breccia. These breccias were highly fluidized with

formation of milled tuffisite-rich matrix and formation of pebble dykes. Local clasts of coxcomb-

textured epithermal quartz vein material infill voids within these breccias. Sphalerite and galena occur

as clots within druzy quartz-basemetal breccia veins, as disseminations within the matrix to milled

hydrothermal breccias, and locally as semi-massive veins. Occurrences of native gold (Au) is late-

stage, occurring within the matrix to late tuffisite breccias (Plate 39), although native Au was also

observed within quartz-sphalerite-galena veins (Plate 38).




Plate 38 – (KTDH-04) Stage 4b Quartz-galena vein with native gold.

Plate 39 – KTDH-04 (105.7m) – Stage 4b tuffisite ‘dyke’ with visible native gold (72.21 g/t Au). Sphalerite and

galena clots occur in the adjacent breccia which comprise the wall-rocks to the late tuffisite breccia (see insert).




11.2.8 STAGE 5 - (3rd

Stage of Epithermal event continued – Neutral Fluids)

Anhydrite-Gypsum Veining

Anhydrite-gypsum veining (Stage 5) is the last recognized paragenetic stage in the development of the

Kay Tanda deposit. It is comprised of anhydrite veining (mostly hydrated to gypsum) which cross-cuts

all other stages of mineralization. The anhydrite-gypsum veins often contain pyrite and base-metal

mineralization (sphalerite and galena) and locally have well developed sericitic alteration haloes. The

alteration haloes indicate that these late-stage fluids were relatively acidic. Oriented drill core reveals

that the anhydrite-gypsum veins lack any strong preferred orientation, again in keeping with the

observation that most of the veins related to the Stages 4a and 4b of the epithermal base-metal

mineralization event are seemingly randomly oriented as a result of forming within highly pre-fractured

rocks.

Figure 22 – Stereographic projection of Stage 5 anhydrite-gypsum veins (n=289) as measured from diamond

drill core. The plot of the great circles (left) and poles (centre) for these sulfate veins indicate a fairly random

distribution of orientations, comparable to the wide-ranging distributions observed in the Stage 4a carbonate veins

(Figure 20) and the Stage 4b quartz-basemetal veins (Figure 21), although again there is a slight bias to the strike

direction of pre-existing vein and fracture sets (025° and 295°).

Plate 40 – KTDH-19 (450.20m)

Stage 5 gypsum veins with well-

developed bleached sericite alteration

haloes indicating that the late stage

fluids were cool but relatively acidic

in composition.




Plate 41 – KTDH-10 (385.70m) Stage 5 anhydrite-gypsum-sphalerite-galena veins in sericite-chlorite altered

rocks. Sericitization is associated with the anhydrite-gypsum veins suggesting the fluids were cool and modestly

acidic.

Independent and empirical support for the vein paragenesis (Table 3) of the Kay Tanda and Pulang

Lupa prospects also comes from Figure 26 below. The author instructed MRL geologists to capture an

over-printing relationships database during the course of routine logging of diamond core at Kay Tanda

and Pulang Lupa. The results of this relationships database were then condensed and summarized in

Figure 26 by the principal author. A broad paragenetic scheme can be established from such a matrix,

the results of which are described below. By analyzing the frequency with which different sets of

structures are observed to over-print each other, support can be built for a model paragenesis.

Figure 23 (overleaf) – Summary of 649 overprinting relationships that were documented in an overprinting

relationships database at Kay Tanda-Pulang Lupa. The number of times with which the events labeled at the top

of each column were observed to overprint the events labeled at the left-hand-side of the rows is given by the

number of the matrix intersection. So, for example, Stage 3b Quartz veins were observed to overprint Clay-

Chlorite fractures of Stage 1b at 23 localities in drill-core, and never vice-versa. Consequently the quartz veins

are clearly a younger event. In a second example, pyrite stringers overprint quartz veins in 18 logged localities

whilst the vice-versa, quartz veins overprint pyrite stringers at 10 logged localities, suggesting that these features

are broadly equivalent in timing with multiple episodes of overprinting of each other. Note: the cells are color-

coded according to a 3-fold classification (orange >4 occurrences; yellow 1-3 occurrences; white – no

occurrences). The paragenetic location of the 6 lowest rows and 6 right-hand columns is uncertain at present.

When the data are treated in this manner, we can rapidly establish the broad parameters of the paragenesis with

quantitative evidence. In the matrix below the following observations are made:




1 The Stage 1a breccias are extensively over-printed by Stages 1b (20 occurrences), 3a, 3b, 4a, 4b and

5, but rarely if ever overprint any of these features. This suggests that the breccias are the earliest

paragenetic stage.

2 Stage 1b clay-chlorite fractures extensively overprint the Stage 1a breccias (35 occurrences in total)

but only on one occasion is observed to be overprinted by a coarse mosaic hydrothermal breccia of

Stage 1a. This confirms that the clay-chlorite fractures post-date Stage 1a breccias (blue outline).

3 Stage 3a and Stage 3b features clearly post-date Stage 1a and Stage 1b events at numerous localities

whereas the reverse is rarely true (green and black outlines).

4 Within the Stage 3a and 3b group of events, (Qtz-Py + Qtz) veins collectively overprint Py stringers

at 32 localities while in the reverse, Py stringers overprint (Qtz-Py + Qtz) veins at 30 localities. This

suggests that these veins are broadly synonymous in timing. Furthermore, Stage 3b veins (Qtz, Qtz-

Py and Py) collectively overprint Stage 3a Sericite-Qtz fractures at 26 localities whilst Sericite-Qtz

fractures are not observed to overprint Qtz and Qtz-Py veins and only overprint Py stringers at 2

logged localities, suggesting that the Sercite-Quartz ± Py fractures (Stage 3a) are an earlier stage

than the Qtz, Qtz-Py and Py veins (Stage 3b).

5 Carbonate veins (Stage 4a) are observed to overprint Stages 1b, 3a and 3b consistently and rarely

vice-versa.

6 There are not many instances of observed over-printing relationships between Stage 4a carbonate

veins and Stage 4b base-metal veins. Some of these carbonate veins however contain sphalerite and

galena, and so are thought to be related to this latter stage of epithermal mineralization.




7 Base-metal veins (Stage 4b) extensively overprint Stage 3a and Stage 3b fractures, veins and

alteration with 60 documented occurrences, whilst on only 4 occasions are quartz veins of ‘apparent

Stage 3b’ observed to overprint the base-metal suite (red outline). These data provide good evidence

for the base-metal mineralization being distinct and younger than the low-sulfidation Au-Ag

epithermal event of Stage 3a-3b.

8 Whilst anhydrite-gypsum veins are common in some diamond drill-holes at depth, there are only 3

documented instances of overprinting relationships between anhydrite-gypsum veins and base-metal

veins. In all 3 instances the anhydrite-gypsum veins (Stage 5) overprint and so are younger than the

quartz-basemetal veins (Stage 4b).

11.3 Grade Distribution Amongst the Veins

Kay Tanda and Pulang Lupa comprise numerous generations of veins and fractures, and in many

intervals of rock several of these generations are present. In order to better understand which

generations of fractures and veins are associated with gold mineralization at Kay Tanda, a separate

subset database was generated which comprised only those intervals in which only one generation of

veining was observed to occur, and then normal probability plots of the assays for each generation of

vein were plotted. In this manner, grade from a particular interval could be assigned to a particular vein

type, without the complications of multiple vein generations contributing to a single Au assay. Figures

24 to 26 show results of this analysis.

Figure 24 – Distribution of Au grade (log scale) in a number of selected vein types, plotted on a normal

distribution scale on the x-axis. The grades are plotted for entire assayed intervals so they represent a combination

of Au in the veins and Au in the adjacent wall-rocks, and are irrespective of the percentage of logged vein within

each interval. Highest Au grades are associated with the base-metal veins (Stage 4b) for samples above the ~80

percentile, and above the ~85 percentile the grades are above 1 g/t Au. The least Au appears to be associated with

the pyrite stringer veins of Stage 3b and the quartz-molydenite veins of probable Stage 1a. The Stage 3b quartz-

hematite-pyrite and quartz-hematite veins (pink crosses) are clearly enriched relative to all other vein sets below

the ~70 percentile, and this may be a result of Au enrichment by oxidation.




Figure 25 – Distribution of Au grade (linear scale) in a number of selected vein types, plotted on a normal

distribution scale on the x-axis. In terms of Au grade, the intervals with only base-metal veins have proportionally

the highest Au grades (Stage 4a), followed by quartz-hematite veins (oxidation of Stage 3b quartz-pyrite veins),

then by quartz veins (brown x; Stage 3b) and then by quartz-pyrite veins of Stage 3b (red circles).




Figure 26 – Enlarged view of Figure 25 for sample intervals containing only one type of vein and at grades less

than 2 g/t Au. Note the curve of the Stage 3b quartz-hematite veins and quartz-pyrite veins are near identical in

form and track parallel with each other, but with the intervals with quartz-hematite veins displaced to higher Au

values. If the anomalous enrichment pattern of Au in the Stage 3b quartz-hematite veins (pink crosses) is due to

oxidative enrichment of those intervals with Stage 3b quartz-pyrite veins (red circles), then the factor of

enrichment in the oxidized areas is about two (2) for most of the plotted samples. This enrichment factor is

consistent with that documented by Rohrlach (2006) in a review of RC percussion chips from cross-sections

9800mN and 9900mN.

These diagrams indicate that gold was introduced into the Kay Tanda and Pulang Lupa prospects

during two stages of evolution of the epithermal mineralization event.

11.4 Alteration on Cross-section

Pima spectral analyses were conducted on samples from 12 drill holes on section 9800mN in order to

map the alteration mineralogy in detail. Figure 27 shows the relative order of abundance of alteration

minerals that were identified by Pima on this section. The dominant alteration minerals identified by

the Pima analyses were illite, chlorite and carbonate. Illite is the dominant hydrous phyllo-silicate

phase, having the strongest spectral signature in the majority of samples, consistent with observations

in drill core and RC chips that argillic, phyllic and sericite-chlorite alteration are the dominant

alteration types at Kay Tanda. The illite-chlorite-carbonate signature that dominates this cross-section

is a neutral alteration assemblage that is typical of low-sulfidation epithermal systems. Areas of very

low temperature clays (montmorillonite, nontronite and kaolinite) occur within the younger post-

mineralization cover rocks which have not been hydrothermally altered (see Figures 27 and 29). The

area of acid alteration (pyrophyllite, alunite and diaspore) occupies a very small part of the section and

occurs as a flat-lying zone located just below the post-mineral Balibago Andesite which is exposed in

the upper parts of holes KT-61, KT-02 and KT-12. Thus the acid-mineral assemblage appears to lie just

below an old palaeo-surface, thus leaving open the possibility that the acidic alteration assemblage

formed by acidic supergene waters through the oxidation of sulfide.




Figure 27 – Mineralogy from Pima analyses on cross-section 9800mN. The 1st 2nd and 3rd most abundant

alteration minerals (excluding quartz) that are defined by Pima are plotted from left-to-right against each

drillhole. See Figure 29 for the geology of this cross-section. The mineralogy is dominated by illite (pink bars)

followed by carbonate (brown bars) and chlorite (green bars). The assemblage illite-carbonate-chlorite is typical

of the near-neutral alteration assemblages that characterize low-sulfidation epithermal systems. The grey shaded

areas define regions of low-temperature clays (montmorillonite ± kaolinite). The yellow area shows the location

of acidic mineral assemblages (pyrophyllite, alunite, diaspore). Note the area of acid alteration is highly

restricted, is flat-lying and is positioned just beneath the zone of surficial low-temperature clays that coincide

with the post-mineral Balibago Andesite in holes KT-61, -02 and -12. The acidic assemblage lies just below an

old palaeo-surface onto which erupted the Balibago Andesite. Hence these restricted acidic mineral assemblages

may have formed by surface weathering which generated acidic supergene waters by the oxidation of sulfide,

although the primary or secondary origin of this acid assemblage cannot be ascertained with certainty at present.

Figure 28 (below) – Results of Pima analyses on cross-section 9800mN. The contoured data are a spectral

parameter that is derived from Pima analyses of potassic white micas (illite). The spectral parameter that is color-

contoured here is the ratio of the depth of the octahedral cation – OH bond absorption feature over the depth of

the interlayer water absorption feature. This parameter is related to the substitution between potassium ions (K+)

and water (H2O) or hydronium (H3O+) molecules in the interlayer site of potassic white micas, and whose

substitution is highly temperature dependant. Consequently the contours are proxy isotherms showing relative

temperature variations on section. The illites on this section that crystallized at highest temperatures are shown in

the pink, red and orange areas, at intermediate temperatures in the yellow and green areas and those that

crystallized at lower temperatures are shown in the blue and grey areas. Such data may be useful as a guide for

defining fluid up-flow zones.




Figure 29 – Geology on cross-section 9800mN.




11.5 Style of Mineralization and Model

The mineralization at Kay Tanda has previously been described as being of high-sulfidation (HS)

epithermal character (Palomaria 1997). However many fundamental characteristics of the

mineralization are consistent with the system being a variant of a low-sulfidation (LS) epithermal

system. Every mineralizing system is different and there can exist, in addition to the end-member

styles, variations in style that evolve with time. These variations relate primarily to a varying magmatic

fluid component within the evolving hydrothermal fluids (from very high in HS deposits to very low in

LS deposits), and varying degrees of equilibration of the fluids with the country rock as they are

transported to the site of mineralization (very high in LS deposits and very low in HS deposits). These

vary also in time and distance from the source intrusion. In recognition of these spatial and temporal

complexities, the key features that suggest Kay Tanda is primarily a variant of a low-sulfidation

epithermal system are listed below. The features listed in italic print are relevant to Kay Tanda and

Pulang Lupa:

1. In LS systems open-space vein fills are dominant, disseminated ore is typically minor and

stockwork ore is common. In HS systems veins tend to be sub-ordinate (only locally dominant),

disseminated ore is dominant and stockwork ore is minor. Most LS deposits consist of cavity-

filling veins with sharp boundaries or stockworks of small veins (Hedenquist 1997), whilst the

majority of HS deposits consist of disseminated ores that replace or impregnate leached

volcanic rocks.

2. Sphalerite is common in LS deposits whereas it is typically rare in HS deposits.

3. Low-sulfidation deposits do not typically contain Cu-As-sulfides such as enargite and luzonite

however these are relatively characteristic of HS deposits due to the high-sulfidation state of

the hydrothermal fluids.

4. Adularia and calcite, both indicating near neutral Ph conditions, are common in low-sulfidation

deposits but are generally absent from high-sulfidation deposits which are characterized by

acid fluids. Carbonate is widely identified by Pima analyses throughout the cross-sections at

Kay Tanda.

5. Chalcedony is common in LS deposits but is rare in HS deposits.

6. LS deposits show banded and crustiform quartz and chalcedony veins, druse-lined cavities and

spectacular multiple-episode vein breccias (Berger and Eimon, 1983). In contrast HS deposits

show minimal variation with the most characteristic texture being massive bodies of vuggy

silica typical of those at Summitville and Nansatsu (Hedenquist 1997).

7. The wall-rock assemblages of LS vein and stockwork systems comprise, in addition to quartz,

adularia and calcite, K-mica (i.e. sericite-illite), chlorite, albite, epidote, zeolites, pyrite and

base-metal sulfides. These reflect a reduced ore fluid of near-neutral Ph. Some high-level

zones of acid-sulfate alteration may be present in low-sulfidation systems. In these cases

boiling drives of H2S from the deep neutral chloride fluid. These vapors condense at shallow

levels to form local aquifers of cool acid-sulfate waters. When the hydrothermal system wanes,

these cool acid-sulfate fluids percolate downward and can form low temperature acid mineral

assemblages of alunite, crystobalite and kaolinite, while diaspore and pyrophyllite can form




where these fluids penetrate deep enough to be sufficiently heated, as in some Philippine

geothermal systems (Reyes 1990). However, typically these zones of acid alteration in low-

sulfidation epithermal systems tend to be minor, high-level and commonly tabular in form.

The single detailed Pima cross-section at Kay Tanda (9800mN; Figure 28) reveals that the bulk

of the alteration (illite-carbonate-chlorite) formed in equilibrium with a near neutral fluid in the

main areas of Au mineralization, antithetic to that which is observed in HS deposits.

8. Free gold is rare in HS systems whilst free gold is quite common in LS systems.

It is likely that the workers who classified Kay Tanda in the early stages of its development where

influenced by the occurrence of acid minerals at surface (minor alunite, pyrophyllite, diaspore and

kaolinite) and so classified the prospect as being a high-sulfidation epithermal system. However most

alteration and mineralization features encountered by the MRL drilling are more consistent with a low-

sulfidation system, as discussed in points 1-8 above. Any model for the Kay Tanda deposit must

suitably account for all observations. Consequently a genetic model and time progression of events at

Kay Tanda and Pulang Lupa is presented in the remaining parts of this section (see captions to figures

Figures 30 and 31 to 34). Like any model, it must be open to continual review and improvement.

There are several styles of mineralization and alteration that are recognized on the Kay Tanda

prospect and surrounding region. They comprise two (2) main mineralization events, an early

porphyry event of Mid to Upper Miocene age (associated with the Balibago Intrusive Complex) and a

younger evolving and multi-stage epithermal event of probable Pliocene age (associated with dacite

porphyry intrusions). The extent of mineralization in the old porphyry system is not presently

quantified since it extends to deep levels which are presently not adequately tested by deep drilling. Its’

coeval epithermal environment has been largely removed by erosion. The second mineralization event

is a much younger, unrelated, overprinting epithermal system that evolved through three (3) main

stages from acid, to intermediate to neutral fluid composition over time. In order of time progression,

these events are:

1. Early porphyry Cu-related alteration assemblages [sericite-chlorite-clay (SCC) and phyllic] and

very weak (trace to minor) quartz ± chalcopyrite ± bornite ± molybdenite ± anhydrite

mineralization and coeval hydrothermal breccias. These formed at depth in the Balibago area

where extensive Cu anomalism is observed in association with pyritic fractures in SCC-altered

rocks, at depth below and marginal to Kay Tanda within the diorites of the Balibago Intrusive

Complex, and potentially in the North Lumbangan area. This weak mineralization is thought to be

of Middle to Upper Miocene age and related to emplacement of the Balibago Intrusive Complex.

Determining if this style of mineralization strengthens at depth must await deeper drilling in areas

peripheral to Kay Tanda.

2. A second mineralization event occurred in or near the Middle Pliocene and comprised of a

complex evolving epithermal system that was linked to younger dacite porphyry intrusions

(predominantly small stocks and dykes) whose emplacement were controlled by northeast-

trending structures. This younger epithermal system evolved through three (3) main styles of

alteration and/or mineralization:




i) Early Strongly Acidic Fluids: An initial stage of blanketing acid-sulfate alteration which is

presently either substantially removed by erosion from above Kay Tanda, with only basal relics

preserved at surface in the eastern portion of the deposit, or alternatively, had a very limited extent.

Relics of this acid alteration are preserved in earlier porphyry-stage hydrothermal breccias and in some

permeable tuff horizons within the Talahib Volcanic Sequence. The alteration comprises silica plus

pyrophyllite-kaolinite ± diaspore ± alunite. No HS mineralization is recorded in association with this

initial stage, most probably because the magmatic vapors expanded to very low pressures at shallow

levels prior to their condensation in the groundwater system. Note: it is still contentious if the acid

alteration formed from early primary or late secondary fluids.

ii) Subsequent Weakly Acidic Fluids: Subsequent extensive low-sulfidation Au-Ag epithermal

stockworks associated with low-temperature chalcedonic, banded and colloform quartz veins and pyrite

stringers formed within the carapace over the Balibago Intrusive Complex. This occurred as a regional

geothermal system became established over the cooling stocks and dykes of younger Pliocene age

dacite porphyry intrusions. The geothermal system was influenced by northeast-trending extensional

faults that likely localized dacite porphyry intrusions and provided fracture permeability. This

geothermal system was associated with intense argillic alteration dominated by quartz and illite plus

less smectite, chlorite and carbonate. This geothermal system was imposed on the Kay Tanda and

Pulang Lupa areas as a result of the waning thermal structure in the region. Collapsing isotherms

allowed surface-derived meteoric waters to circulate through the system. The fluids that formed the LS

epithermal quartz-Au-Ag stockwork veins were likely to have been moderately saline (substantial Ag),

neutral to weakly acidic (extensive illite-sericite alteration) and cool (low temperature silica textures).

These fluids may have comprised a substantial component of primary entrained magmatic fluid to

account for the modest acidity and high intensity of argillic alteration. Local boiling (as evidenced by

abundant vapor-rich fluid inclusions) can also act to drive down fluid Ph by loss of CO2.

iii) Late Neutral Chloride Fluids: Young overprinting quartz-carbonate-basemetal mineralization is

locally associated with bonanza Au deposited from fluids that were mostly neutral in composition (lack

of strong argillic vein haloes), though of higher temperature and deeper levels (crustiform quartz) and

quite saline (abundant base-metals). This late-stage event is associated with the most reduced and

neutral alteration assemblages, suggesting even lower components of magmatic fluid. The geothermal

fluids were well-equilibrated with the deeper and hotter portions of the sequence at a late stage in the

evolution of the hydrothermal system. The presence of carbonate within carbonate-basemetal and

quartz-carbonate-basemetal veins suggests the involvement of surface-derived secondary bicarbonate

waters that were allowed to percolate downward by the further collapsing thermal regime, and mix with

the hot ascendant neutral chloride liquids. The latter stages of the base-metal mineralization event saw

downward encroachment of surface derived acid-sulfate waters which mixed with neutral chloride

liquids to form late anhydrite-basemetal veins and gypsum veins at lower temperatures.

The transition from acidic to weakly acidic to neutral mineral assemblages through the three (3) stages

of the epithermal system is here interpreted to be related to the decreasing magmatic input into the

geothermal system over time as the dacite porphyry stocks cooled (Figure 30). The stepwise deepening

of the mineralization through time from early shallow acid-sulfate (barren) to underlying argillic

alteration and Qtz-Au-Ag stockworks and then to deeper neutral assemblages with carbonate-quartz-

basemetal mineralization, is here interpreted to reflect the downward migration of geotherms as the

system cooled and collapsed on itself, resulting in the critical temperature range for Au deposition




falling to lower levels over time (Figure 30). The porphyry source(s) associated with the evolving mid-

Pliocene epithermal event may lie at substantial depth beneath and lateral to the Kay Tanda region.

Figure 30 – Panel 1 schematically represents the initial porphyry event associated with the Middle to Upper

Miocene Balibago Intrusive Complex. Panels 2, 3 and 4 represent an unrelated and separate evolving epithermal

event in the Pliocene that is associated with dacite porphyry stocks (Figures 10 and 11). This epithermal event

involved a transition from early and barren acid-sulfate alteration (barren HS event) to superimposed and

underlying quartz-Au-Ag stockworks with weakly-acidic argillic alteration (LS) and then to underlying

carbonate-quartz-sulfate-basemetal mineralization with neutral mineral assemblages (LS). The progression from

acidic to intermediate to neutral fluids over time is interpreted to reflect the decreasing component of magmatic

fluids available to the hydrothermal system as the intrusions cool. The progressive deepening of mineralization

within the sequence with time is likely a function of both erosion and collapsing geotherms, such that the critical

temperature interval for Au deposition like-wise migrates downward with time.




Figure 31 – Early development of the Kay Tanda and Pulang Lupa prospects in the Middle to Upper Miocene

commenced with the emplacement of the Balibago Diorite Complex below the southeastern flank of the Mt Lobo

volcanic centre. The intrusive complex was emplaced in stages and comprised multiple facies of diorite and

quartz diorite stocks, dykes and small intrusive plutons. Several large hydrothermal breccia bodies were emplaced

above the intrusive stocks during the early stages of pressure release associated with second boiling in these

intrusions (Stage 1a). The intrusive complex resulted in upward buckling or doming of the overlying bimodal

volcanic strata of the Lower and Upper Talahib Volcanic Sequence. During the emplacement of the magmatic

complex, extensive fracturing of the domed volcanic carapace occurred either by intrusive doming, by explosive

fracturing induced by second boiling and/or by thermal cracking during cooling of some of the earlier stages of

the intrusive complex. During successive intrusive stages, the wall-rocks became propylitic-altered and fractures

were healed by chlorite (Stage 1b). These processes are typical of either weak or distal portions of porphyry

systems. Episodes of cooling of the multiple intrusive phases may have resulted in the development of clays that

occur in association with chlorite in the fractures (Stage 1b). Local quartz ± molybdenite ± chalcopyrite veins

formed at this stage and extensive SCC alteration formed within the outer margins and carapace of the intrusive

complex. Early porphyry-related alteration formed at this stage.




Figure 32 – The epithermal environment above the early Mid- to Upper Miocene porphyry system associated

with the Balibago Intrusive Complex was eroded away. Active pulses of tectonic extension then occurred during

the Pliocene and were associated with early stages of widespread crustal extension that ultimately became

focused along the Macolod corridor further north. Northeast-trending extensional structures developed across the

volcanic terrain during these extensional pulses, and they became the prime focus for high-level intrusions,

including late-stage dacite porphyry stocks and dykes. Initial degassing of these dacite porphyry intrusions

generated some acid-sulfate alteration of Stage 2, however no high-sulfidation epithermal mineralization formed

possibly due to the high level and hence low pressure of degassing. As the dacite porphyry bodies completed

degassing and began to cool, a geothermal system was initiated along one or more NE-trending extensional

structural conduits. Heated groundwater vigorously circulated down along a NE- to ENE-trending structural

corridor that extended from WSW of Pulang Lupa to beyond Marita to the ENE, a distance of over 4 km. These




geothermal fluids actively scavenged and mixed with trapped and/or ascending aliquots of magmatic fluid. The

geothermal system was most active in areas of highest heat-flow (mapped by high-temperature illite in regional

Pima data). These areas are aligned along the ENE-trending Pulang Lupa–Kay Tanda–Lumbangan–Marita trend.

Incipient illite-sericite alteration of Stage 3a developed along the chlorite-clay micro-fractures of the underlying

fractured diorite stocks as cooler oxidized meteoric groundwaters impinged downward following cessation of

degassing. Low-sulfidation epithermal Au-Ag systems were then established and extensive argillic alteration

centered along an ENE-trending corridor. The argillic alteration encapsulates low-temperature epithermal

stockworks of banded, colloform and chalcedonic quartz veins, banded quartz-pyrite veins, pyrite stringers and

pyrite stockworks (Stage 3b). Au-Ag mineralization was introduced primarily within the quartz and quartz-pyrite

veins and fracture stockworks. Veins were preferentially oriented along northeasterly trends (025° and 070°).

Sericite/illite alteration selvedges around individual veins and vein stockwork zones eventually coalesced to form

a regional argillic alteration envelope. Stage 3b low-sulfidation epithermal mineralization was associated with

localized hydrothermal brecciation.




Figure 33 – Ongoing extension along NE-trending structures may have facilitated the formation of graben-like

depressions within which clastic and marine sediments and intercalated volcanics of the Calatagan Formation

were deposited on the geothermally active volcanic terrain. With ongoing erosion and with further cooling of the

dacite porphyry intrusions at depth, the shallow level geothermal fluids were able to collapse down to deeper

levels onto the cooling dacite porphyry stocks as isotherms retreated downward. The Calatagan Formation

sediments that overlie the Talahib Volcanic Sequence record a weak propylitic alteration event (Comsti 2007),

indicating that thermal activity continued after deposition of the volcano-sedimentary sequence. The Calatagan

sediments display some weak base-metal replacement mineralization within local basal limestone members

however this mineralization is very restricted, consistent with the significant retreat of the geothermal system to

deeper levels. The veins of the quartz-carbonate-basemetal mineralizing event (blue lines above) may have

largely utilized pre-existing fracture networks which were extensively developed at that stage. The presence of

carbonate, quartz and sulfate (anhydrite-gypsum) as gangue to basemetal sulfides indicate that several different

waters were involved in this mineralization event. The carbonate-basemetal veins, Stage 4a, also locally occur as

Mn-rich varieties. They likely formed by downward percolation of stored secondary bicarbonate waters and

mixing of these cool bicarbonate fluids with hot ascending neutral and more saline basemetal- bearing fluids. The

shallow bicarbonate fluids supply the CO2 while the ascending hot neutral chloride brines supply the Au and




base-metals. Heating of the descending bicarbonate waters forces carbonate deposition due to the inverse

solubility of carbonate while mixing results in oxidation of reduced sulfur-complexes that transport Au within the

deeper fluids, thus promoting gold deposition. The quartz-basemetal veins (Stage 4b) veins lack substantial

sericite alteration haloes, suggesting they precipitated from a neutral fluid. They contain a greater abundance of

basemetal sulfides and so the fluids were likely to have been hotter and more saline. These veins likely

precipitated from hot ascending neutral-chloride fluids, with no substantial input from bicarbonate waters. The

high salinity required to transport substantial basemetals may have been derived by deep percolation (facilitated

by the downward penetration of circulating fluids with time as the system collapsed to deeper levels) and leaching

of meteoric waters through underlying rocks in the older porphyry environment and scavenging chloride from

fluid-filled interstices in the underlying porphyry environment. Boiling of these fluids during ascent instigated

multiple episodes of hydrothermal brecciation within narrow conduits (e.g. KTDH-04). During boiling they

would have boiled off volatiles such as H2S and CO2. This vapor would have condensed in the vadose zone and

oxidized to form cool acid-sulfate waters and bicarbonate waters. During descent of these surficial waters, the

inverse solubility of carbonate and sulfate allow them to increasingly precipitate as the downward percolating

fluids were heated in proximity to the intrusions. The late-stage descent and heating of these surficial acid-sulfate

waters enables gypsum to precipitate at temperatures below and approaching 100-150°C whilst anhydrite

precipitates at higher temperatures as the acid-sulfate waters penetrate down structures closer towards hot

intrusions at depth. Minor basemetal mineralization is observed in association with these gypsum veins where the

acid-sulfate fluids encounter and mix with residual neutral-chloride brines. The association of bleached sericite-

illite alteration haloes to these Stage 5 gypsum veins attests to the cool and acidic nature of the fluids and hence

their likely surface-derived origin as acid-sulfate fluids.




Figure 34 – Following completion of Stage 4a, 4b and 5 mineralization, uplift and erosion continued. Renewed

volcanism erupted the Balibago Andesite (an equivalent of the Maatas na Gulod Complex) and the Lobo

Agglomerate that forms the Upper Pinamucan Formation. During ongoing erosion since the Late Pliocene, the

stockwork vein systems have been exposed at surface. Oxidation of the surface mantle has resulted in progressive

enrichment of the mineralized zones at Kay Tanda and Pulang Lupa, with an enrichment factor of around two

being fairly typical of the zones of intense oxidation.




11.6 Ahit - Balibago

The Ahit and Balibago areas lie southwest of Pulang Lupa, near the southwest end of the Archangel

property. The Ahit and Balibago prospects comprise an 800m by 600m IP chargeability anomaly which

is coincident with an IP resistivity anomaly (Figure 40). Ahit Hill exhibits intense argillic alteration

which may comprise the upper levels of a deeply buried porphyry system. PIMA analyses of

phyllosilicate alteration minerals from the area reveal the presence of high-temperature potassic white

mica (high-temperature illite) relative to the surrounding areas. Extensive and strong Cu anomalies in

soil samples (Figure 42) are associated with this argillic alteration.

Two reconnaissance diamond drill holes, 500 meters apart, were drilled in 2006 to test the strong

chargeability anomaly and the coincident surface occurrences of copper-oxide staining, quartz veining

and ferruginous fracturing. These holes intersected dacite porphyry, diorite and quartz diorite stocks

that had intruded the andesitic and dacitic volcanics of the Talahib Volcanic Sequence. Possible

porphyry-related alteration comprising SCC (sericite-chlorite-clay) and phyllic (quartz-pyrite-clay)

alteration which overprint propylitic alteration, were intersected in these holes. Minor sulfides were

encountered (pyrite, minor chalcopyrite, covellite, bornite, galena and sphalerite). The holes ended at

close to 500 meters depth within zones of extensive anhydrite-gypsum veining. The latter is a common

feature seen in porphyry systems in the Philippines.

11.7 South and North Lumbangan

The North Lumbangan prospect comprises a zone of high-level epithermal silicification that is

associated with quartz veins, veinlets and breccias. Vuggy silica and the presence of pervasive silica

replacement in the area are both potential indicators of acid leaching by magmatic-derived fluids that

may have emanated from a porphyritic intrusive at depth. The surface rocks are characterized by

massive quartz and breccia and contain thin barite-sulfide veins that are similar to those encountered at

the SW Breccia prospect on the Lobo property. The widespread silica-clay alteration zone at

Lumbangan is progressively blanketed by young volcanic rocks at higher elevations to the northeast,

and mineralization may extend under cover. The presence of gypsum veins cross-cutting the massive

quartz zones (NL Trench #2) suggests late deposition at low temperatures. The presence of quartz,

sulfide and barite along fractures may reflect an underlying quartz-barite vein system at depth. The

Lumbangan area is likely to represent a ENE-ward continuation of the Kay Tanda mineralizing system.

11.8 Marita

The Marita prospect is located northeast of Kay Tanda. The prospect is centered on a 1 km by 700m

zone of high IP chargeability. The prospect is underlain by volcanic rocks that are intruded by diorite

and dacite intrusives, and are partly overlain by younger volcanic cover to the northwest. Hydrothermal

alteration in the region is dominantly phyllic and is overprinted by intense argillic alteration.

Geological mapping, analysis of surface fracture patterns and trenching has revealed the presence of

oxidized quartz-sulfide stockwork veins which are locally associated with copper mineralization.




A strongly silicified and veined boulder (float) collected from the Marita prospect contained

disseminated chalcopyrite and assayed 9.92 g/t gold. The Author, using PIMA data (Figure 35),

summarized his findings in an internal report to the client as follows ….

“The Marita area is associated with a very distinctive circular zone of sericite alteration that is

approximately one kilometer in diameter. Within this illite alteration lies an arcuate zone where illite

occurs in association with jarosite. Jarosite is a common weathering product of pyrite and is seen in a

number of porphyry systems that have extensive jarosite development in their leached caps. The

arcuate jarosite zone defined by PIMA is broadly similar in shape and position to the arcuate core of

the IP anomaly (>40 msec at n=3). Hence it is reasonable to suspect that the sulfides that define the

core of the IP anomaly are also responsible for the jarosite development where they are oxidized at

surface.”

Hydrothermal alteration that has been mapped at Marita covers an area of 300m by 500m. This area of

alteration lies ~2 km northeast of Kay Tanda. A broadly northeast-trending zone of argillic alteration is

characterized by pervasive silica-clay-pyrite alteration which is interpreted to reflect hydrothermal

activity along structurally-controlled quartz vein breccias. Minor sulfides (pyrite, chalcopyrite,

covellite, galena and sphalerite) have been encountered in the area. The breccias are similar to those

observed at Lobo. They are matrix-supported heterolithic breccias comprising clasts of chalcedonic

quartz, kaolinite or alunite, clay and minor sulfide. Epithermal vein mineralization and silica

replacement textures observed to date are less well developed compared to those observed in the Lobo

breccia system. Crustiform and colloform banding is locally observed in some veins, and barite is

suspected in some samples. The Marita prospect is interpreted as a dominantly low-sulfidation

epithermal system that likely developed at late stages over an underlying porphyry copper-gold system.

One of two veins that were channel sampled at Marita assayed 13.5 g/t Au and 4.4 g/t Ag while he

altered andesite footwall sequence characterized by sub-parallel quartz veins up to 7cm wide

assayed 0.7-0.9 g/t Au and 1.2-2.5 g/t Ag. These veins formed within the intensely argillized and

brecciated rocks which outcrop along the ridge west of Marita creek. On the basis of soil geochemical

sampling along cross lines 12000N and 12200N, >200 ppm Pb and >400 ppm Zn anomalies

characterize the upper drainage catchment of Marita creek.




Figure 35 – (Top) Composite image of IP anomalies, surface faults expressed in topographic data, illite+jarosite

alteration and color contours of the thermal variations in illite formation as recorded by the structurally bound

water content of illite as measured by proxy spectral parameters using Pima. (Bottom) Composite image of IP

chargeability, illite+jarosite alteration and distribution of high-Al illite (blue shaded zones) at Marita. The Marita

prospect is zoned (white arrows) with Al-in-illite increasing inward towards the core of the IP chargeability

anomaly and the surface zone of illite+ jarosite alteration.




11.9 Bootin

The Bootin prospect (Figure 36) is located ~1.5 km north of Marita and is associated with high-

chargeability IP anomalies. The area is largely covered by younger volcanics, with windows of phyllic-

altered andesite, andesite porphyry and diorite. A hydrothermal breccia with a matrix of fine pyrite and

clay has been identified by MRL geologists on the northwest side of the prospect. Zones of argillic to

advanced argillic alteration have been mapped and localized copper showings identified. A grab sample

from a NNE-trending zone of fault gouge assayed 27.61 g/t gold. High-temperature illite alteration was

identified by Pima mapping in the Bootin prospect area.

Figure 36 – Composite image of topography, IP anomalies (black hachured area), surface faults (blue lines),

zones of highest-temperature illite defined by surface Pima data (white hachured areas), zones of silica+alunite

from Pima sampling (pink) and a zone of kaolinite-illite alteration (blue hachured area). A magnetic anomaly (not

shown) underlies the area of kaolinite alteration. The Bootin area represents a deep porphyry Cu-Au target

associated with the magnetic anomaly and a high-sulfidation epithermal target associated with the surface zones

of acid-alteration.




12. EXPLORATION

12.1 Previous Exploration Work by Other Companies

A description of the early mining history in the Balibago region is given in Section 8.0 of this report.

The various groups that have worked in the Archangel region include Chinese small-scale miners

during the Spanish era, Japanese miners prior to World War II, the Mines and Geosciences Bureau,

Western Mining Corporation (WMC), Chase Resources in a joint venture with BHP Minerals, Billiton,

Egerton Gold NL and Mindoro Resource Ltd.

12.2 MRL Exploration – (2003)

12.2.1 Data Assessment

In January 2003 MRL evaluated the exploration data from Western Mining Corporation, Chase

Resources, BHP and Billiton over the Archangel Project. During this assessment of past exploration

effectiveness, several interesting geologic targets were identified. The principal targets that were

identified by MRL were Talon, Piit, Japanese Tunnel, Ahit, Malagundi, Pulang Lupa, Kay Tanda and

Lumbangan Prospects.

12.2.2 Reconnaissance Investigations

Reconnaissance geologic investigations were carried out in these areas and both outcrop and float

samples were collected. A reconnaissance geological investigation was also carried out in the northern

portion of the MPSA in Mahangin Creek, in the Kalabasa and Bootin rivers and east of Kay Tanda.

Earlier field investigations defined a large alteration system in the Balibago-to-Kay Tanda region that is

characteristic of porphyry-related magmatic hydrothermal systems. Silica-chlorite-sericite alteration

was identified over an area 3 km long by 1 to 1.5 km wide and which was overlain by younger rocks in

the north and west. Showings of copper oxide minerals (malachite and azurite) were observed in

several widely distributed locations at Balibago. Extensive and strong copper soil anomalies were

previously defined by Western Mining, BHP and Chase Resources however these were not drill tested

since these companies focused their exploration effort on the Kay Tanda Gold Prospect.

David Bailey of Bailey Geological Consultants (Canada) Ltd. North Vancouver, B.C., Canada, was

commissioned to conduct field verification of the Kay Tanda prospect and the Balibago porphyry

prospect of the Archangel Project. His observations from his field visit on Aug 12-13, 2003 were

articulated in a memorandum on Archangel/Lobo Projects dated Aug 29, 2003. In his report, he stated:

“The prospects within the Archangel Project area may be considered to be part of a single

mineralising system. Pulang Lupa, Kay Tanda and extensions into Philex ground are high level

manifestations of the underlying porphyry deposit inferred to exist at Balibago…”




12.2.3 Assessment of Chase Drilling

While MRL had the analytical results of the 13 Chase drill holes on file, there was no record of the Qa-

Qc procedures employed by Chase Minerals for their percussion holes. Consequently MRL decided

to further investigate the reliability of the Chase assays. An attempt was made to locate all the old

reverse circulation (RC) drill holes of Chase Minerals at the Kay Tanda gold prospect, to clean up the

drill sites and to retrieve and re-bag the old RC samples. The 6-year old drill sites were substantially

covered by vegetation. Nine (9) drill sites of Chase Minerals were subsequently located and all the RC

samples found in the drill sites were re-bagged and stored at the Lobo office. Under the guidance and

direction of Mr Stephen Carty, consultant to MRL, a total of seventy-five (75) samples from Chase RC

drilling (CA-1 to CA-7, and CA-9) were re-sampled to check the original Chase analytical results.

Appropriate handling and sampling procedures were carried out for these old Chase drill samples. A

series of blanks and certified standards were also submitted together with the Chase samples. The assay

results from this re-sampling activity confirmed the reliability of the Chase data. The report “QAQC

Data Verification and Repeat Sampling of RC Samples” by Stephen Carty (February 2005) is attached

as Appendix 6 to this report.

12.2.4 Geological Mapping

During 2003, MRL conducted semi-detailed and detailed geological mapping at the Kay Tanda, Pulang

Lupa and Lumbangan prospects. Mapping at Kay Tanda identified moderate to intense quartz

stockwork Au-Ag mineralization. At Pulang Lupa, an outcrop of hematitic vuggy quartz was identified

in addition to quartz stockwork zones that appeared to be contiguous with those to the east at Kay

Tanda. Float and outcrop sampling was also conducted.


Exploration activity on the Archangel Project during 2004 consisted of reconnaissance geological

mapping, semi-detailed and detailed geological mapping, grid establishment, prospecting, rock-chip

sampling, pitting, trenching and geophysical surveys. A detailed description of the results of

exploration in 2004 was reported in MRL’s Archangel Annual Report (August 2004).

12.3.1 Gridding

A gridline survey commenced in January 2004 and covered the Balibago, Ahit, Kay Tanda, Pulang

Lupa, Lumbangan, Marita and Bootin prospects. A baseline was established along 10,000mE and was

oriented at N050°E. 200-meter spaced cross-lines were oriented at 320°-140°.

12.3.2 Geophysical Surveys – (IP and Magnetics)

Geophysical surveys comprising dipole-dipole induced polarization (IP), gradient array and ground

magnetic surveys were conducted by McPhar Geophysics along the gridlines. The IP survey was

undertaken using a Scintrex IPR-12 time domain system configured in a conventional 2-D dipole-

dipole array. The potential electrode spacing was 100 meters and separation factors of n=1 to n=5 were




used. Ground magnetic surveying was conducted at the same time. Magnetic data were gathered using

a GEM Systems GSM-19 proton precession magnetometer and were collected on the same grid lines

that were used for the IP survey, at a nominal station spacing of 12.5 metres.

12.3.3 Trenching

Trenching was undertaken at Pulang Lupa (5 trenches) and at North Lumbangan (2 trenches). At

Pulang Lupa, five (5) trenches were excavated thirty meters apart within the silica cap (Figure 38). The

results of these trenches are listed in Table 4. A grab chip sample collected from a narrow quartz-

sulfide vein with pyrite-chalcopyrite-galena-sphalerite about 600 meters northeast of Kay Tanda

assayed 9.9 g/t gold, 4.0 g/t silver and 1.02% lead.

Table 4 – Au and Ag intersections in trenches at Pulang Lupa and North Lumbangan

Area Trench Intersection

Width

(m)

Au

(g/t)

Ag

(g/t) Comment

Pulang Lupa Trench 1 18m 2.67 49.2


Pulang Lupa Trench 3 23m 1.86 11


Pulang Lupa Trench 5 8m 4.28 4

North Lumbangan Trench 1 14m 0.65 153.2 Silica & silicified Breccias

North Lumbangan Trench 2 4m 0.62 99.7

Figure 37 - Results of trenching conducted at Kay Tanda




Figure 38 - Results of trenching conducted at Pulang Lupa


During 2005 the gridline survey was further extended to complete the Archangel Project grid. Cross

lines were surveyed at 200m-spaced intervals along the baseline.

12.4.1 Geophysical Surveys – (IP and Magnetics)

The initial phase of geophysical surveying that had commenced at Archangel in 2004 was completed

on the 23rd April 2005. This program comprised over 70 kilometers of combined induced polarization

and magnetic surveys. Geophysical surveys were completed on 32 lines between 8000mN and

14200mN and between 9000mE and 10500mE. Interpretation of this IP data was conducted by E. Trent

Pezzot of S.J.V. Consultants Ltd. Details of Pezzot’s interpretations are documented in the report titled

“Geophysical Report, Induced Polarization and Magnetic Surveys, Archangel Project” (July 2005).

Pezzot concluded in this report that:

“The induced polarization survey has delineated a northeasterly striking band of moderate (> 300

ohm-m) resistivity that crosses the entire survey grid and is open in both directions. The strike and

structures within this band conform to the geological mapping of the area. This band includes 4

clusters of higher (> 700 ohm-m) resistivity centres that might be reflecting buried silica caps to

porphyry bodies. Scattered indications of elevated chargeability support this interpretation however

these chargeability anomalies are typically at the limits of the depth of investigation of this survey.”




“Character and amplitude changes in the total magnetic field data appear to be mapping a layer of

young volcanic rocks located at higher elevations along the northwestern side of the survey grid. A

similar magnetic signature appears to be associated with a hornblende andesite porphyry and

propylitic alteration zone at the northeastern end of the grid. Magnetic data also appears to be

indicating the presence of easterly trending faults.”

Following Pezzot’s recommendations, an additional phase of IP surveying was contracted to Elliot

Geophysics International Pty. Ltd. and commenced in August 2005 and ended in early 2006. The final

results of these IP surveys are illustrated in Figures 39 and 40.

Figure 39 – IP chargeability data (msecs) in the Archangel Project area plotted at n=4. The area of drilling at

Kay Tanda and Pulang Lupa is shown by the black outline. An elongate and northeast-trending corridor of high

chargeability response runs from Pulang Lupa and Kay Tanda through to Marita. Highest chargeabilities occur in

the Marita prospect area. Additional zones of chargeability (at n=4) occur at the Balibago prospect and in the

Bootin-Kalabasa area north of Marita. Drilling at Kay Tanda should continue to the north and northeast where

high chargeability responses continue beyond the current limits of drilling. Data provided by Elliot Geophysics

International Pty Ltd.




Figure 40 – IP resistivity data (ohm-m) in the Archangel Project area plotted at n=4. The area of drilling at Kay

Tanda and Pulang Lupa is shown by the black outline. An elongate and northeast-trending corridor of high

resistivity response runs from the Ahit and Balibago prospect areas in a gentle arc through to the Bootin prospect

area. In the Balibago the high resistivity zones may coincide with areas of mapped dacitic volcanics in the lower

part of the Talahib Volcanic Sequence. In the Bootin area Pima surveys have indicated the presence of alunite and

silica (Figure 44) and so the high resistivity response in this region could relate to a silica cap within a high-

sulfidation environment above a porphyry system. Data provided by Elliot Geophysics International Pty Ltd.

12.4.2 Initial Metallurgical Testing

Initial metallurgical testing of material from the Kay Tanda prospect was conducted by Metcon

Laboratories in October 2005. The studies were conducted on material from a trench from the Kay

Tanda prospect which had assayed head grades of 3.58 g/t Au and 51 g/t Ag. An initial carbon-in-leach

test was completed at a grind size of 80% passing 75 m to provide an indication of maximum

recoveries achievable. The gold and silver dissolutions were 94% and 37% respectively. Column leach

tests were then conducted to simulate heap-leaching at two different crush sizes of 100% passing

12.7mm and 100% passing 50mm. The gold dissolutions were 88.1% for the 12.7 mm crush size (after

30 days) and 81.7% for the 50mm crush size (after 88 days). These gold recoveries were considered

high given the early stage of metallurgical testing.




12.4.3 Soil Sampling

Soil geochemical sampling was undertaken in 2005. The aim of the survey was to identify anomalous

zones of gold, copper, silver and other elements in the soil profile of the Archangel project. The soil

sampling program covered cross lines 9600N to 13000N, 13800N and 14200N. A total of 925 samples

from the 2005 program that were submitted to McPhar Laboratory for Au, Ag, Cu, Pb, Zn and As

analyses are plotted in Figures 28 and 29). Substantial Au anomalies in soil samples were generated in

the Kay Tanda and Pulang Lupa prospect areas while Cu anomalies tended to occur in the Balibago

prospect area (Figures 41 and 42).

Figure 41 – Color-contoured soil gold results. The strongest Au anomalies coincide with the Kay Tanda and

Pulang Lupa prospect areas where the prospects are characterized by >80 ppb Au in soils. A northeast-trending

zone of enhanced Au response in soils extends towards the Marita prospect area (dotted red outline). This zone of

anomalous gold in soils coincides with the northeast-trending zone of argillic alteration mapped by the regional

Archangel Pima survey (see Figure 44).




Figure 42 – Color-contoured soil copper results. The strongest Cu anomalies coincide with the Balibago

prospect area southwest of Kay Tanda. The Balibago prospect is a porphyry Cu-Au target which has seen

preliminary drill testing by MRL. Cu is anomalously low in the Kay Tanda and Pulang Lupa areas, due primarily

to the low-sulfidation epithermal Au-Ag mineralization that occurs at surface in these two prospect areas.

The results of the soil geochemical sampling in the Kay Tanda area (high Au and low Cu) reflect the

low- to intermediate-sulfidation epithermal character of the mineralization in the region. The lack of

substantial Cu anomalies at the surface of Kay Tanda is consistent with low Cu values identified in

drilling, and suggests that the negative Cu anomaly is not due to leaching of a Cu-rich high-sulfidation

epithermal system, but rather, that the primary epithermal mineralization is low- to intermediate

sulfidation in character. These observations support the concept that the Kay Tanda prospect is at high

levels within the epithermal environment and may be located lateral to rather than directly over a

porphyry Cu position.





12.5.1 Geophysical Surveys – (IP)

Geophysical surveys (IP) by Elliot Geophysics International Pty Ltd which commenced in August 2005

were completed on the 3rd March 2006 with a total of 29.70 line kilometers surveyed (Table 5). The

advantage of this latest survey by Elliot Geophysics International was that the more-powerful Elliot IP

system was capable of detecting IP responses at substantially greater depths.

Table 5 - IP Lines completed in 2006.

Gridline Line meters 9600N 2,100m

10200N 2100m

12600N 3900m

12800N 2,400m

13000N 4350m

13200N 2850m

15000N 2,100m

15400N 2100m

15800N 1500m

16200N 2100m

17400N 1800m

13400N 2400m

Total 29700

12.5.2 Pima Surveys

Between December 2005 and February 2006 MRL collected 582 regional samples from across much of

the Archangel MPSA area for PIMA (Portable Infrared Mineral Analyzer) analysis. The samples were

taken from outcrops along creeks, ridges, ridge spurs, trails, and roads.

The PIMA II instrument is a field-portable spectrometer that operates in the Short Wave Infrared range

of the electromagnetic spectrum and measures the spectral absorption of mineral species. One of the

primary applications of the PIMA instrument is the identification and characterization of alteration

minerals. Many alteration minerals have bonded hydroxyl groups that are amemable to excitation by

electromagnetic radiation in the short-wave infrared region. The PIMA unit is used to identify the

species of alteration minerals within small rock-chip size samples and to map their distribution in

space, thus allowing the identification of zonation patterns in hydrothermal systems. Minerals that can

be identified by Pima include, but are not limited to, chlorite (Fe-chlorite and Mg-chlorite), epidote,

carbonate (calcite, dolomite), jarosite, hematite, goethite, kaolinite, montmorillonite, nontronite,

smectite, illite (paragonite and phengite), muscovite, diaspore, dickite, pyrophyllite and alunite. The

PIMA samples at Archangel were collected mostly along southeast-flowing drainage systems (see

Figure 30) at variable spacing though commonly at distances of around 50 meters distances, in order to

more accurately map alteration zones within the project area.

The principal observations from this Pima survey are described in the caption to Figure 44.




Figure 43 – Distribution of PIMA samples collected by MRL on the Archangel property. Samples were

collected mostly from within drainages and along ridge lines. Sample density varied between 30m and 200m and

was around 50 meters along drainage systems. The sampling was conducted to define project-scale zonation in

alteration mineralogy as discussed below and illustrated in Figure 44.




Figure 44– Distribution of alteration minerals in the Archangel project area as defined by PIMA mapping. Kay

Tanda and Pulang Lupa lie within a northeast-trending and structurally-controlled envelope of argillic alteration

(yellow-cross hachured area; illite) that extends from beneath the cover sequence west of Pulang Lupa through to

the Marita prospect area. The principal conclusions from this Pima survey in respect of regional alteration zones

are: 1) The clays within the overlying cover sequence (Lobo Agglomerate) along the northwest side of the

Archangel project region are dominated by montmorillonite, a product of low-temperature weathering. The

samples from this younger sequence lack chlorite because they are not propylitic altered. 2) The areas shown in

light grey comprise a combination of montmorillonite + chlorite. These form a contiguous region west of Marita

and which extends along the western side of Bootin and the northern side of Lumbangan. The presence of chlorite

suggests a precursor propylitic alteration assemblage which has been partially weathered to montmorillonite. 3)

The areas shown in dark green are those in which chlorite is the dominant alteration mineral. This alteration

facies comprises chlorite, chlorite + carbonate, chlorite + epidote, and together with weathering-related clays in

minor proportions (kaolinite, montmorillonite and nontronite. These areas are propyllitic-altered, like the region

discussed in 2) above, with the exception that the abundance of weathering clays is less. 4) The areas shown in

light green are characterized by illite + chlorite alteration. They are relatively widespread in distribution west of

Balibago, south of Kay Tanda and Lumbangan and on the eastern side of the Bootin-to-Marita drainage system.

In many areas, the illite-chlorite facies envelope small pockets of chlorite and/or epidote alteration. This facies

may broadly represent a zone that is transitional between propylitic alteration and illite-dominated argillic

alteration, resulting in assemblages that are a mixture of chlorite and illite. 5) The yellow shaded areas represent

alteration zones that are dominated by illite + kaolinite. They occur invariably in proximity to and adjoining areas

that are dominated by illite alteration (yellow cross-hachured areas). For example, illite+kaolinite (yellow) lies

along a north-south ridge that joins the two illite-altered regions at Marita and Bootin, and is associated with

relicts of illite alteration further to the northeast. Areas of illite+kaolinite encapsulate islands of illite alteration

southwest of Marita, and southeast of Kay Tanda and in the Balibago region. The most likely explanation for this

strong spatial association between illite (yellow) and illite+kaolinite (yellow hachured areas) is that the kaolinite




represents a low temperature overprint on the areas of illite alteration. Kaolinite often forms in relatively acidic

and low temperature environments, and is often a low temperature alteration product of illite. Kaolinization of

illite, sericite or phyllic alteration is commonly observed in hydrothermal ore deposits, whereby acid

groundwaters cause alteration of potassic white micas to kaolinite. 6) Further evidence supporting the

interpretation that kaolinite formation is related to acidic groundwaters lies in the distribution of the zones of

kaolinite-dominant alteration (blue cross-hachured areas). The two identified areas of kaolin-dominated alteration

lie along the northwest margin of Bootin (6 samples) and along the eastern margin of Marita (2 samples). Both of

these areas occur in close proximity to areas of acidic alteration assemblages (alunite at Bootin and pyrophyllite

east of Marita). 7) The yellow cross-hachured areas represent zones of illite-dominated alteration. There appears

to be a strong northeast alignment in the distribution of this alteration facies, which run from Marita through

Lumbangan, Kay Tanda, Pulang Lupa and Tanon (not labeled) before disappearing under the cover of the

overlying Lobo Agglomerate further to the WSW. It is likely that a fundamental underlying structure is the cause

of the linear distribution in the illite-dominant alteration zones. Two parallel structures that are expressed in the

surface topography that run along the northern side of the Lumbangan Ridge are parallel to this linear illite

alteration trend and provide tentative evidence for some underlying structural control on this alteration facies. The

gross ENE trend of the illite-dominant alteration zone in the broader Kay Tanda region probably broadly maps an

illite-pyrite alteration halo to the ‘collective’ epithermal quartz veins and stockworks in the region that are

interpreted to have a strong northeasterly control on their orientation (Rohrlach and Jimenez, 2006 - stereonet

analysis, Aurelio 2006 – structural interpretation). 8) The second observation in respect of the illite-dominant

alteration zones (yellow cross-hachured areas) is that they occur in all of the 6 main prospect areas. For example,

illite alteration occurs at Balibago where it is coincident with IP anomalism, it occurs at Tanon where silica and

jarosite occur in two Pima samples in an area of Cu staining, it occurs along the Pulang Lupa to Kay Tanda trend

and also further northeast along the prospective northeastern side of Kay Tanda, it occurs as a large alteration

zone at Marita and it is also present as a structurally-controlled zone at Bootin where IP responses are evident. 9)

Although alteration assemblages that can be considered as acidic in character, such as alunite, pyrophyllite and

dickite are identified in three broad areas, their expression is weak. 10) The most pronounced area of jarosite

development was observed at Marita where a semi-circular zone of illite + jarosite alteration occurs in an area that

is approximately 1km by 500 metres in dimension. Extensive Fe-oxide development on fracture networks have

been mapped along the drainages in this region, and may account for the strong jarosite signature in the Pima

data.




13. DRILLING

Mindoro Resources conducted a major RC and diamond drilling program on the Kay Tanda Prospect

and the adjacent Pulang Lupa Prospect in 2006 and 2007. A total of 147 reverse circulation percussion

holes and 26 diamond drillhole were completed by MRL between the 2nd April 2006 and the 12th July

2007, yielding a total of 173 drill holes for a total program meterage of 23,042.3m. Details of the

drilling program are outlined below. Prior drilling by Chase Resources involved 13 RC percussion drill

holes for a total meterage of 1,544m. Collar co-ordinates and hole depths are listed in Appendix 14.

The initial drill holes by MRL were designed to test the extent and continuity of epithermal

mineralization at shallow levels of the Kay Tanda prospect and to test at deeper levels for the presence

of porphyry Au-Cu mineralization. In positioning the initial series of drill holes, MRL reviewed all

existing data, including surface alteration data, previous drilling results by WMC (7 holes) and by

Chase Resources (13 holes), chargeability and resistivity anomalies from a regional IP survey

conducted by MRL, grid soil anomalies, and rock-chip plus trench geochemical results.

Figure 45 – Spatial distribution of drilling at the Kay Tanda and Pulang Lupa epithermal prospects.




13.1 Drilling Contractors and Drilling Statistics

Three (3) drilling contractors were used in the drilling program, two for the RC drilling and one for the

diamond drilling. Table 6 summarizes the drilling which was undertaken by each of the contractors.

Table 7 shows other relevant statistics.

Table 6 - Drilling contractors and drill-holes

Contractor Type of

Drilling

K.Tanda

# holes

P.Lupa

# holes

Total

Meterage Start Date End Date

East-West Drilling Percussion RC 13 13 3,206 2 April 2006 11 June 2006

DrillCorp Philippines Inc. Percussion RC 93 28 13,542 10 July 2006 2 April 2007

United Philippines Drilling Diamond 24 2 6,294.3 26 Aug 2006 12 July 2007

Totals 130 43 23,042.30

Table 7 - Core size, daily drill production and number of samples analyzed.

PQ HQ NQ Average Production No. Samples

Analysed

Core Drilling 3,035.8 1,944.6 1,313.9 18.39m / 24 hours 4,192

RC Drilling 90.49m / 12 hours 9,873

East-West Drilling Incorporated was the first contractor to commence drilling at Kay Tanda and Pulang

Lupa for MRL. Following a reconnaissance survey of the initial prepared drill sites by Robert

O’Connor of East-West Drilling Corporation on the 24th of March, mobilization of the reverse

circulation drill rig, compressor, drilling accessories and fuel commenced on the 26th of March. East-

West drilled 26 RC percussion holes for a total meterage of 3,206m. The depths of the drill holes

ranged between 46 and 187 meters, with an average depth of 123.31m.

East-West Drilling Inc. was subsequently sold to DrillCorp who completed the remainder of the RC

percussion drilling program. DrillCorp drilled 121 RC percussion holes for a total meterage of

13,542m. Drill-hole depths ranged between 50 and 252 meters with an average drill hole depth of

111.92m.

All of the diamond drilling was done by United Philippines Drilling Company Incorporated. Two (2)

diamond holes were completed at Pulang Lupa (PLDH-01 and PLDH-02) whilst 24 diamond holes

were completed at Kay Tanda (KTDH-1 to KTDH-24). Diamond drilling was conducted between 26th

August 2006 (KTDH-01) and 12th July 2007 (KTDH-24). The depths of the diamond holes ranged

between 83m and 519.3m with an average depth of 242.09m.

The company addresses of the drilling contractors are:




DrillCorp Philippines Inc: 16 South Coast Industrial Estate, Barangay Bancal, Carmona, Cavite,

Philippines. Ph: (046) 430-3516.

United Philippines Drilling Co. Inc: Pioneer Highlands South Condominium, Unit 818, Pioneer cnr

Madison Streets, Mandaluyong City 1552, Manila, Philippines.

13.2 Drilling Equipment

East-West Drilling Inc. used a truck-mounted GEMCODRIL from Western Australia solely for the

purpose of reverse circulation drilling. This drill rig continued to operate on the Kay Tanda and Pulang

Lupa prospects for a period after East-West Drilling Inc. was sold to DrillCorp. The GEMCO drill rig

was supported by a truck-mounted ELGI compressor from ELGI Equipment Limited (ELGI DZ 23036)

of Coimbatore, India. This drill rig drilled KTRC 1 through 67 and PLRC 1 through 29. In 2007, the rig

was replaced by Gempak 2000, a larger drill rig that is capable of penetrating down to a depth of

approximately 250 meters. The Gempak 2000 was used in drilling KTRC 68 to 106 and PLRC 30 to

41. The RC drilling was completed on April 2, 2007 for a total of 147 holes and an aggregate meterage

of 16,748.

Diamond drilling at Kay Tanda and Pulang Lupa was conducted by United Philippines Drilling Co.

Inc. (UPD) utilizing two (2) man-portable diamond drilling rigs (Drill Technics DT500P and Atlas

Copco CS500). The cores were retrieved using triple-tube sampling and core sizes drilled were PQ-3

(83 mm diameter) from surface, with reduction to HQ-3 (61.7 mm) and NQ-3 (45 mm) at depth. Whilst

core drilling was undertaken to generate more reliable geological information on the mineralization at

Kay Tanda and Pulang Lupa, the man-portable rigs were also employed in areas where access was

difficult, and where the company wished to minimize environmental disturbance in order to gain

access.

Plate 42 (left) – GEMCODRIL rig on drill-site KTRC-41 (29th August 2006). Plate 43 (right) - Track-mounted

Gempak 2000 RC percussion rig.




Plate 44 (left) – United Philippines Drilling Co. Inc.’s Drill Technics DT500P rig on hole KTDH-01. Plate 45 (right)

- Drill Technic DT500P rig (UPD) on drill hole KTDH-04.

13.3 Production Rates

The diamond drilling at Kay Tanda and Pulang Lupa was conducted on two (2) 12-hour shifts. The

production rate of diamond drilling averaged 18.39m per day (2 shifts), with a daily production range

of 11.25m/24 hours in KTDH-04 and 30.19m/24 hours in KTDH-18.

The GEMCO RC percussion rig had an average daily production rate of 83.77 per day whilst the

GEMPAK 2000 RC percussion rig had an average daily production rate of 103.13m per day. Average

daily production for RC drilling across the entire drilling campaign was 90.49m per day.

13.4 Casing in Drillholes and Drillhole Collars

Many of the drill holes (94 holes) were cased in the upper-most few meters of the holes. The PVC

casings (range between 1m and 12m in length) were grouted into the holes to stabilize their upper

portions in the thin soil and saprolite profile that characterizes the Kay Tanda and Pulang Lupa

prospects. The average casing length is 3.93m.

The drill collars are capped by a square concrete block approximately 30cm x 30cm in dimension

which encases a 30-50 cm length of PVC tubing that protrudes from the drillhole. The PVC collar is

capped by a folded metal sheet as shown in Plates 46 and 47. The drillhole number and the local grid

co-ordinates are inscribed into the concrete base whilst the drillhole number is written onto the metal

plate by permanent marker pen.




Plate 46 – Drill collar for hole KTRC-07. Plate 47 – Drill collar for hole KTRC-49.

13.5 Water in Drillholes

Water that is encountered in RC percussion drilling was recorded on a Sample Description Form

(SDF). These forms were maintained at the drill site by MRL during drilling, together with sample

recovery information. Very little water was encountered in the RC percussion drilling program at Kay

Tanda and Pulang Lupa, and most samples were dry. Whilst 38 holes out of a total of 147 holes

nominally encountered water, the water that was encountered was typically in narrow (1-2m wide) and

isolated intervals. Table 8 summarizes the intervals in the RC drilling program that encountered water.

Only 93 drill metres out of a total program of 16,748m (0.56% of samples) encountered water.

For the small fraction of samples that were wet, the samples were sun-dried until moisture levels were

sufficiently low that the samples could be split using a conventional (manual) mixing and quartering

technique. When wet samples had passed through the sampling hose and cyclone, the latter was

cleaned with extra effort to minimize the volume of wet sample sticking to the walls of the sampling

hose and cyclone.

There were only 36 intervals of recorded wet RC sample in the entire drilling program. The assays

covering all 36 wet intervals and assays immediately below the wet intervals were plotted to ascertain

if there was any observable tail in gold grade due to sample retention within the sampling hose or rods.

Only one wet intersection displayed possible evidence of some grade tailing, although the case is not

clear cut. It is concluded that gold tailing below wet samples is not a problem and does not have any

material impact at Kay Tanda and Pulang Lupa.




Table 8 - Intervals of wet sample from the RC drilling program.

Hole Depth Wet Intervals (m)

Hole Depth Wet Intervals (m)

KTRC-100 48-50 2 KTRC-66 36-38 2

KTRC-100 96-98 2 KTRC-67 85-86 1

KTRC-101 39-40 1 KTRC-68 14-16 2

KTRC-101 60-64 4 KTRC-70 56-58 2

KTRC-103 62-66 4 KTRC-85 62-64 2

KTRC-104 112-118 6 KTRC-85 78-80 2

KTRC-53 14-16 2 KTRC-88 12-18 6

KTRC-54 26-28 2 KTRC-88 26-28 2

KTRC-55 64-65 1 KTRC-93 210-213 3

KTRC-55 132-133 1 KTRC-93 213-218 5

KTRC-57 54-56 2 KTRC-95 178-180 2

KTRC-58 37-38 1 KTRC-95 206-218 12

KTRC-59 161-162 1 PLRC-20 4-6 2

KTRC-59 55-56 1 PLRC-22 32-34 2

KTRC-60 124-126 2 PLRC-27 118-120 2

KTRC-62 40-42 2 PLRC-27 139-140 1

KTRC-63 15-16 1 PLRC-29 40 2

KTRC-65 138-140 2 PLRC-39 26-28 2

KTRC-66 34-36 2 PLRC-41 26-28 2

13.6 Drillhole Surveys

Down-hole surveys were conducted on 21 of the 26 diamond drill-holes. Diamond holes KTDH-01 to

KTDH-04 and KTDH-13 were not surveyed. Holes KTDH-03 and KTDH-04 were vertical holes. No

surveys were conducted on the RC holes as these do n1ot typically deflect much. A total of 109 down-

hole surveys were conducted in the diamond drill-holes, and 100 of these are valid surveys. The

surveys were taken mostly at 50 meter intervals down-hole as well as at the bottom of the hole. The

down-hole surveys were conducted using an Eastman single-shot survey camera (Eastman-US Mine).

13.7 Orientation of Drillcore

The majority of diamond drill cores were oriented. Core orientations were done on inclined holes using

the spear method. Spear orientations were conducted in areas where the core was deemed sufficiently

coherent to allow successful implementation of a spear mark on the core stub and extrapolation of the

oriented line along the core within the split tube assembly. Plates 49 and 50 show the process of core

orientation underway on core from hole KTDH-01 at Kay Tanda.




Plate 48 – Example of diamond drill-core orientation survey disks conducted by MRL at Kay Tanda.

Plate 49 (left) – Marking the spear indentation point on the core within the triple-tube assembly. Plate 50 (right) –

Laying the oriented core (see red-line along core axis) into the core trays.

13.8 Surveying of Collar Positions

All drill-hole collar positions and elevations at Kay Tanda and at Pulang Lupa were surveyed using a

Nikon Total Station EDM Instrument (model DTM-322). A Bureau of Lands Location Monument

(BLLM) located at the Malabrigo lighthouse has a set of official coordinates that were defined by the

land survey department of the Department of Environment and Natural Resources (DENR). Discussion




with MRL surveyors indicate that the government survey co-ordinates for the Malabrigo lighthouse

were probably generated from a differential GPS survey.

MRL surveyors used a South Total Station EDM Instrument (model NTS-325) to survey from the

Malabrigo lighthouse BLLM to a nearby Government Cadastral Survey Point located at Archangel

(Plate 24) in order to establish its coordinates.

MRL subsequently established nine (9) survey control points in the Archangel project by surveying

from the Government Cadastral Survey Point at Archangel. The survey control points that were

established in the vicinity of the Kay Tanda and Pulang Lupa drill-grids are listed in Table 9 below.

MRL are presently assessing the survey instrumentation that might be used to more accurately fix the

location of the Malabrigo Lighthouse whose coordinates were used as the control point for the

Archangel grid.

Table 9 – Survey control stations within and around the Kay Tanda prospect that are tied to the

Government Cadastral Marker at Archangel.

Area Station North UTM East UTM Local North Local East Elevation (m)

KayTanda-1 S-1 1507131.61 316868.96 10096.82 10002.00 246.26

KayTanda-2 S-2 1506827.50 316683.88 9755.20 10104.10 329.00

Pulang-Lupa S-3 1506957.43 316153.34 9447.88 9652.54 321.04

Shoreline S-4 1506703.79 317537.28 10306.63 10767.06 9.92

Malagundi Point S-5 1505758.35 317238.91 9452.27 11270.02 21.76

Lumbangan-1 S-6 1507178.15 317990.12 10960.56 10717.56 12.09

Lumbangan-2 S-8 1507188.77 317438.93 10558.05 10340.85 199.91

Plate 51 – (left) Malabrigo Lighthouse, location of the Bureau of Lands Location Monument (BLLM). (right)

Government Cadastral Survey Point at Archangel whose coordinates was established by EDM

surveying from the Malabrigo Lighthouse.




13.9 Summary Results of Drilling

Reverse circulation percussion drilling and diamond drilling conducted by MRL cover an area of

approximately 500m x 500m at Kay Tanda and 200m x 300m at Pulang Lupa (Figure 45). Drill

sections are 50 metres apart and drill spacing is at 50 metre centres on most sections, although some

infill to 25 metre spaced centres has been conducted in local areas at Kay Tanda and Pulang Lupa.

Mineralization that has been encountered at Kay Tanda comprises 2 main styles:

1) Extensive and widely dispersed low-grade stockwork vein systems.

2) Narrow and discrete high grade high-grade veins and narrow hydrothermal breccias.

Pulang Lupa

Drilling at Pulang Lupa has revealed a coherent and contiguous sheet of quartz-Au-Ag stock-work

mineralization that varies mostly from 20 to 60 metres in thickness (See Appendix 1) and which has a

component of dip to the northwest. Drill holes along sections at Pulang Lupa with hole-spacings of

around 20-30m reveal that the mineralized zone at Pulang Lupa shows good coherency between and

along sections, and is continuous between the drillholes. The mineralization forms a tabular zone that is

exposed at surface over the main part of Pulang Lupa hill and dips gently under unmineralized cover to

at the northwest. The uppermost part of the tabular mineralized sheet at Pulang Lupa appears to have

been lost to erosion. The mineralized horizon is hosted primarily by volcanics in the lower part of the

Talahib Volcanic Sequence and in a zone that broadly overlies the intrusive bodies at depth. Like Kay

Tanda, there are sporadic tho fewer and narrow zones of higher grade mineralization at Pulang Lupa.

Some of the better intersections from the Pulang Lupa zone are listed in Table 10. The best

intersections include [email protected] g/t Au (179.16 ppm Ag; PLRC-23), [email protected] g/t Au (36.62 ppm

Ag; PLRC-33), [email protected] g/t Au (4.52 ppm Ag; PLRC-30), and [email protected] g/t Au (25.10 ppm Ag;

PLDH-01). The thickest mineralized interval at Pulang Lupa was 86m @ 0.91 g/t Au (16.53 ppm Ag;

PLRC-34). The high silver grades (e.g. 1578.7 ppm Ag; PLRC-03 at 6-8m) at shallow depth suggest

surface oxidation is important in generating some of the high Ag values.

Figure 46 – Cross-

section 9400mN at Pulang

Lupa. Black bars define

the mineralized intervals

at > 0.3 g.t Au.




Kay Tanda

Drilling at Kay Tanda has likewise intersected similar styles of quartz-Au-Ag stockwork mineralization

as were encountered at Pulang Lupa. They lie as a thick carapace over and around the flanks of the

dome-like intrusive rocks which lie at depth. Collectively the zones of stockworking and associated

intense argillic alteration crudely define a zone that drapes in an arcuate manner over the intrusives.

The true thickness of the collectively zone of weakly mineralized stock-work veining varies mostly

from 20 to 80 metres (see Appendix 1). The sampling interval for drill holes through the stockwork

zone is typically 1 or 2 metres. The ‘zone’ of stocking broadly dips to the northwest on the

northwestern side of the intrusive dome, and dips to the southeast on the southeastern side of the dome.

Drill holes along sections at Kay Tanda mostly have spacings of between 25 metres and 50metres.

The overall geometry of the shallow stockwork veined zones is relatively well understood. Drill core

orientations have suggested that there is a strong bias to northeast and ENE for the strike of individual

veins within the zone of intense stockworking, despite large variations in dips of the veins that

comprise the stockwork zones. The mineralized portions of these stockworks (where veining and

fracture density is likely greater) define a broad carapace hosted by the Talahib Volcanic Sequence that

lies over the diorite intrusives of the Balibago Diorite Complex at depth (Figure 47).

At deeper levels of the Kay Tanda deposit there are sporadic and narrow zones of much higher grade

mineralization (Stage 4 mineralization; Section 11.2.7). These are commonly associated with bonanza

gold grades and tend to occur at deeper levels than the shallow carapace of extensive stockworking and

fracturing (Stage 3 mineralization; Section 11.2.5). Where these have been intersected in drillcore, e.g.

in hole KTDH-04, they typically comprise steeply-oriented zones of hydrothermal breccia and veining,

and commonly occur in close-spaced sets.

Figure 47 – Cross-section 9850mN at Kay Tanda. Black bars define the mineralized intervals at > 0.3 g.t Au.




The orientations of these sets of deeper and higher-grade structures are not well constrained by drilling

as they have only been encountered in isolated drill holes. Difficulty in intersecting the multiple

bonanza-grade intersections in drillhole KTDH-04 during follow-up scissor drilling on section may

suggest that the younger lodes that comprise quartz-basemetal-Au stockworking and breccia veins may

trend at a low-angle to the drill sections. Furtherwork is required to better define the orientations of

these higher-grade structures.

Table 10 – Sub-set of some selected significant intersections at Kay Tanda (blue) and Pulang Lupa (yellow).

Hole ID From

(m)

To

(m)

Thickness

(m)

Au

(g/t)

Ag

(g/t)

Zn

(%) KTDH 04 84.0 136.0 52.0 11.50 1.40 1.07

Including 100.0 121.3 21.3 23.50 2.07 1.15

KTDH 20 3.0 64.0 61.0 5.12 0.98

KTDH 24 1.8 101.0 99.2 2.72 1.03

Including 47.0 53.0 6.0 34.00 1.25

KTRC 55 96.0 160.0 64.0 3.45 1.14

KTRC 101 128.0 154.0 26.0 5.96 4.13 3.31

PLRC 23 0.0 26.0 26.0 4.03 179.16

KTRC 68 0.0 64.0 64.0 1.61 2.02

PLRC 33 10.0 38.0 28.0 3.43 36.62

KTRC 04 133.0 143.0 10.0 9.31 1.74

KTRC 44 20.0 96.0 76.0 1.19 1.62

KTDH 07 49.0 173.0 124.0 0.72 1.58

PLRC 30 4.0 62.0 58.0 1.53 4.52

PLDH 01 3.0 63.0 60.0 1.46 25.10

PLRC 36 0.0 44.0 44.0 1.89 3.74

KTDH 01 6.0 99.7 93.7 0.85 1.85

PLRC 34 2.0 88.0 86.0 0.91 16.53

PLRC 37 48.0 66.0 18.0 4.09 2.12

PLRC 21 74.0 80.0 6.0 9.82 6.83 2.35

KTDH 15 170.0 218.0 48.0 1.21 1.10

KTRC 71 12.0 48.0 36.0 1.47 8.63

KTRC 09 0.0 110.0 110.0 0.44 2.06

KTRC 47 72.0 118.0 46.0 0.99 0.70

PLRC 03 8.0 43.0 35.0 1.25 13.83

KTRC 48 58.0 136.0 78.0 0.56 6.13

KTRC 22 16.0 85.0 69.0 0.62 1.75

KTRC 28 22.0 28.0 6.0 6.96 2.01

PLRC 17 0.0 28.0 28.0 1.47 4.64

KTRC 69 82.0 130.0 48.0 0.80 1.36

PLRC 39 0.0 30.0 30.0 1.27 1.57

KTDH 23 24.0 59.0 35.0 1.09 2.67

PLRC 32 12.0 60.0 48.0 0.78 3.01

KTDH 21 10.5 57.0 46.5 0.80 1.81

KTRC 103 98.0 136.0 38.0 0.91 0.89

KTRC 29 0.0 62.0 62.0 0.55 0.94

PLRC 40 36.0 56.0 20.0 1.64 2.56

KTRC 82 16.0 80.0 64.0 0.50 0.75

KTRC 58 100.0 124.0 24.0 1.32 0.53

PLRC 10 0.0 53.0 53.0 0.59 2.57

KTRC 03 47.0 64.0 17.0 1.78 1.07

KTRC 80 118.0 132.0 14.0 2.16 0.79




14. SAMPLING METHOD AND APPROACH

14.1 Float, Channel and Trench Samples

Samples of surface outcrop and float were collected from over the Kay Tanda and Pulang Lupa

prospects as well as from the surrounding areas during the course of MRL’s exploration activities on

the Archangel MPSA (Figures 48 and 49).

Figure 48 – Distribution of rock-chip samples collected by MRL on the Archangel property and adjacent areas.

The samples are colour-coded according to Cu%, and reveal clusters of Cu anomalies at the Balibago porphyry

Cu-Au prospect and also ENE of Kay Tanda. The black outline shows the extent of drilling at Kay Tanda and

Pulang Lupa.




Figure 49 – Distribution of rock-chip samples collected by MRL on the Archangel property and adjacent areas.

The samples are colour-coded according to Au (g/t), and reveal clusters of Au anomalies at the Balibago porphyry

Cu-Au prospect, at Pulang Lupa, at Kay Tanda and also at several localities northeast of Kay Tanda. The black

outline shows the extent of drilling at Kay Tanda and Pulang Lupa.




Channel sampling was employed for surface outcrops and trenches, whilst rock chip and grab samples

were restricted to surface outcrops and samples of float from active drainages. A total of 558 float and

channel samples from Archangel have been collected by MRL to date (Figures 48 and 49). These

samples cover an area of approximately 4 x 2km and are most concentrated in the Marita, North

Lumbangan, Kay Tanda, Pulang Lupa and Balibago areas, although many samples were also collected

from the intervening areas. The locations of rockchip, float and channel samples which have anomalous

Cu and/or Au values are shown in Figures 48 and 49.

The surface rock samples were collected as a reconnaissance tool to aid in the location of zones of

mineralization across the wider Archangel Project area. In most cases for rockchip sampling, the

samples were collected whenever surface rocks showed some sign of mineralization process, such as

alteration, brecciation, feruginization and veining. Consequently the rock-chip data results have an

inherent sampling bias, as is normal for reconnaissance type rockchip sampling. The samples were sent

to McPhar Laboratories for assay. The surface samples are typically assayed for gold, silver, arsenic,

copper, lead, zinc, molybdenum, antimony and mercury.

14.2 Soil Geochemical Samples

Soil geochemical samples were collected from the B horizon of the soil profile, below the level of

humus accumulation. Soil samples were not taken from river banks nor from near the coast-line where

the soils may be transported. During soil sampling, the sampling implements were thoroughly cleaned

between sampling stations, and the wearing of jewelry by the samplers was prohibited during the

program to prevent contamination of the soil samples. Approximately 2-3 kg of -30 mesh soil was

collected and placed in clean sealed plastic bags. These bags were in turn placed in a 2nd outer plastic

bag to doubly protect the soil sample. Soil sampling was carried-out at both 100m and 50m spaced

lines on the Archangel Project area. The soil samples were sent to McPhar Laboratories in Manila for

assay. The elements assayed were Au, Ag, As, Cu, Pb and Zn.

Figures 40 and 41 show the density of soil samples that were collected from over the Kay Tanda and

Pulang Lupa grids as well as over the broader Archangel MPSA area. Soil sampling covered a strike

extent of 6.2 km from 8000mN to 14200mN. The regional survey was conducted along 200 metre

spaced lines, with the soil lines being oriented along the local grid northing (i.e. 320-140 degrees). Soil

samples were collected every 50 meters along the line. The soil sampling over the Kay Tanda and

Pulang Lupa grids was initially conducted on a 100m x 100m spacing and was subsequently infilled on

a 50m by 50m grid over the Kay Tanda and Pulang Lupa areas (Figures 40 and 41). A total of 1359 soil

samples were collected during two (2) sampling campaigns in 2004 and 2005. The results of these soil

sampling programs were discussed in Section 12.4.3 of this report.

The results of the soil sampling program are considered to be well representative of the shallow

bedrock response due to the systematic nature of the sampling program and the lack of bias that is

inherent in the sampling methodology. A strong and arcuate Cu soil anomaly in the Balibago region

covers an area of approxmzately 1.4 km by 0.4 km (400-800 ppm) (Figure 40). Gold soil anomalies

occur in the Balibago region, at Pulang Lupa and Kay Tanda where they form the southwest end of a 4-

km-long ENE-trending zone of Au response that is about 600m wide and which coincides with a linear




zone of argillic alteration that is mapped by Pima. Strong but discrete gold soil anomalies were also

detected at the Bootin prospect over an area of ~900 x 900 metres (Figure 41).

14.3 Petrographic Samples

Petrographic samples for thin-section descriptions were selectively taken from surface samples and

drill samples to better understand the petrology and alteration of rocks at and below the surface.

Samples were selected to be representative of the feature of interest. A total of 266 petrographic

samples have been described to date from the Kay Tanda and Pulang Lupa prospects. The petrographic

samples have been an important tool in constraining a substantial portion of the geology on the Kay

Tanda and Pulang Lupa drill grids and in calibrating the geological logging that was undertaken by

MRL geologists.

14.4 Pima Samples

Samples were collected for PIMA analyses from the Archangel Project. PIMA is an acronym for

Portable Infrared Mineral Analyzer. The PIMA II instrument is capable of detecting a large suite of

hydroxyl-bearing minerals that dominate the alteration assemblages of porphyry and epithermal ore

systems by measuring the infra-red absorption spectra of these minerals. Spectra can be read from

rockchip samples, RC-chip samples, diamond core and soil samples, and is undertaken to qualitatively

estimate the relative order of abundance of alteration minerals. PIMA has great utility for detailed

mapping of hydrothermal alteration in magmatic Cu-Au ore systems and in providing vectors to

mineralization.

14.4.1 Pima on Surface Samples

Pima samples were collected from the surface over a large portion of the Archangel MPSA area

between December 2005 and February 2006. Their distribution is shown in Figure 43. A total of 582

samples were collected from outcrops along creeks, ridges, ridge spurs, trails, and roads. They were

collected from an area 5-km in length by 2-km in width and spanning the entire Archangel Project area

(Figure 43). In areas of apparent uniform alteration the samples were collected at an irregular spacing

of around 50-200m whilst in areas where alteration assemblages were noted to change more rapidly,

samples were collected at closer intervals. Coordinates for the sample points were defined by compass-

and-tape measurement to the nearest established grid point.

Samples that were collected from the surface at Archangel were logged at the Lobo office and rock-

descriptions were input into a Pima database that included sample number, sample co-ordinates,

lithology and inferred alteration. Each sample was then labeled, sawn by cut-off saw and inserted into

20-cell RC chip trays for dispatch to AusSpec International. Assigned sample numbers were AR-10001

to AR-10582.




14.4.2 Pima on Kay Tanda Drill Samples

A total of 289 samples were collected from cross-section 9,800mN through the Kay Tanda deposit,

with a sample being collected on average every six (6) meters down-hole. Figure 27 shows the density

of samples that were collected on this section. The high-density PIMA sampling map the alteration on a

typical cross-section though the Kay Tanda deposit. A further 80 samples spread across 10 cross-

sections at Pulang Lupa and Kay Tanda were also dispatched to AusSpec International [ABN: 40-265-

923-485] - CSIRO Stores, CSIRO Exploration and Mining, 11 Julius Avenue, Riverside Corporate

Park, North Ryde, Sydney, NSW 2113, Australia, for Pima analyses. These were selected as

corroborative samples on adjacent cross-sections:

9300mN (n=10); 9400mN (n=12); 9450mN (n=4); 9500mN (n=7); 9650mN (n=2); 9700mN (n=11);

9750mN (n=12); 9800mN (n=289); 9900mN (n=9); 9950mN (n=2); 10000mN (n=11).

The RC chip samples were inserted into chip-trays prior to being sent to AusSpec International. Pima

analyses were conducted under the supervision of Dr Sasha Pontual. A report by AusSpec International

on the results of the Pima survey was forwarded to MRL together with an Excel spreadsheet of the

results of spectal analyses. The Author of this 43-101 report undertook a preliminary review of the

spectral results provided by AusSpec International.

14.5 Drill Sampling Methods

Both RC percussion drilling and diamond drilling were conducted at the Kay Tanda and Pulang Lupa

prospects. The drill-hole sampling protocols that were established for the RC percussion drilling

program and for the diamond drilling program were necessarily different.

14.5.1 Reverse Circulation Percussion Drilling

The sampling procedures for the RC percussion drilling program at Kay Tanda were established by Mr

Gary Powell and demonstrated to the relevant geologists, drillers and samplers at the commencement

of the drilling program (Figure 51).

Plate 52 – Mr Gary Powell establishing

sampling protocols for the RC drilling

program at Kay Tanda and Pulang Lupa.

IND

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Figure 50 (overleaf) – Sampling protocol that was used by MRL during the RC percussion drilling program at

Kay Tanda.

Figure 50 illustrates the sampling protocol that was employed during the RC percussion drilling

program at Kay Tanda and at Pulang Lupa. This protocol is also discussed in Section 15.1.1 of this

report. The details of the drilling program are presented in Section 13 of this report.

14.5.2 Diamond Drilling

The diamond drilling conducted at Kay Tanda and Pulang Lupa is described in Sections 13.1, 13.2,

13.6, 13.7 and 15.1.2. The core handling, logging and sampling procedure employed by MRL during

the diamond drilling program is illustrated in Figure 51.

Figure 51 – MRL Core handling, logging and sampling protocol.




14.6 Location of Drill Samples and Density

The location of the drill samples at Kay Tanda and Pulang Lupa and the density of sampling were

covered in Section 13 of this report [Drilling].

14.7 Controls on Selected Drill Sampling Width

The sampling interval was initially set at one (1) meter but was later changed to two (2) meters. The

holes that were sampled at 1-meter intervals were PLRC-1 to 13, KTRC-1 to 8, part of KTRC-10 plus

holes KTRC-11 to 13. The holes that were sampled at 2-meter intervals were PLRC-14 to 41, KTRC-9,

part of KTRC-10, and KTRC-14 to 106. The change from 1-meter sampling to 2-meter sampling was

implemented following an early assessment of high continuity of gold grade from meter to meter

down-hole. This vertical and horizontal consistency in grade within the mineralized zones is consistent

with the style of mineralization whereby fine dense networks of fractures and veinlets, which host the

gold mineralization, are pervasively distributed through the rock at the meter scale.

A total of 31.09 % of the RC percussion samples (n=3,069) were sampled at 1-meter intervals while a

total of 68.91 % of the RC percussion samples (n=6,803) were sampled at 2-meter intervals.

14.8 Geological Logging

Preliminary field logs for the RC percussion drill-holes were conducted on site by MRL geologists

during the course of drilling to monitor lithologies as an aid to determining when to continue or

terminate each drill-hole. Two versions of preliminary log sheets were used. An initial form was used

for holes KTRC-1 to 61 and PLRC-1 to 22. An updated form was used for holes KTRC-62 to 106 and

PLRC-23 to 41. The data captured in the preliminary logs included depth (from and to), lithology and

comments.

Additional data was captured onto a Sample Description Form that was maintained by MRL’s on-site

engineer at each drill site (see Appendix 7). This form captured the drill-hole number, depth from,

depth to, sample condition (i.e. moisture level), sample weight, sample volume and comments.

The data from both these forms were key-punched into digital databases. The preliminary geological

logging were conducted on washed and sieved RC chips which were placed sequentially in core trays,

with each interval separated by wooden blocks (Plate 53).




Plate 53 – Preliminary logging of RC percussion samples (KTRC-41).

Following preliminary logging, the core boxes with RC chips were transported to the Archangel field

camp where the sample trays were then photographed prior to transfer of the washed chips into 20-cell

plastic chip holders for photography and detailed RC logging. The excess washed chips were stored in

labeled snap-seal plastic bags for future retrieval from the Lobo sample storage facility if required.

During the detailed geological logging of the RC chips the following geological criteria were recorded

onto paper log sheets (see Appendix 7) and subsequently entered into a digital database:

General Data: Hole number; drill-rig; logger; date logged; date hole started and completed; local grid

northing and easting; collar elevation; hole azimuth and inclination; total depth; inner rod diameter.

Geological Data: Depth (from and to); Lithology; Phenocryst (%); Groundmass (%); Oxidation; Host

Alteration % (silica, sericite, clay, chlorite, epidote, calcite, hematite, limonite, magnetite);

Mineralization % (pyrite, chalcopyrite, bornite, covelite, enargite, molybdenite, sphalerite, galena);

Veining (From, To, Type, % veining); Minerals in Vein % (quartz, anhydrite, calcite, pyrite,

chalcopyrite, sphalerite, galena, molybdenite); Description (comments).

The same format of geological logging sheets was used for the logging of diamond drill core. A

detailed graphical log for each diamond drill hole was drawn on site or at MRL’s core storage facility

at the Lobo office to visually convey the down-hole geology to MRL management.

In addition to detailed geological logging of the core, each core box was photographed as a permanent

photographic record of the core before it was sampled. During the logging of diamond drill core,

intervals of core which had undergone spear orientations were oriented to enable measurement of the

orientation of faults, veins and fractures. The orientation data for various types of veins were entered

into an Excel database.




14.9 Calculation of Drill Sample Recovery Data

14.9.1 Percussion Drilling

The sample recoveries for the RC percussion program were calculated by two different methods.

During sampling at the drill rig the weight of samples were measured on a pair of scales and the

weights recorded to the nearest kilogram (Appendix 2). The volumes of the samples were also recorded

in a cylindrical bucket of known volume. The latter method (sample recovery by volume) turned out to

be unreliable in determining absolute recoveries due to the variable degree of aeration of the sample

within the sample bucket, leading to measured recoveries in excess of 100%. However, it nevertheless

was an indicator of relative recoveries between samples. The more accurate method of extimating

recoveries was by the former method (sample recovery by weight). Using the known surface area of the

RC hammer face and sampling interval, the actual volume sampled at the hammer-face can be

calculated. Combining this theoretical volume data with the average measured specific gravity for each

different lithology type encountered in the drilling (Section 15.8), the theoretical weight of sample

required for a 100% recovery can be calculated. Comparing this value with the actual measured weight

of the sample yielded the recovery.

Figure 52 shows the recovery data for the Gemco and the Gempak drill-rigs calculated by the weight

method. The recoveries were within acceptable limits for RC drilling programs. The recoveries from

the Gempak 2000 drill rig were better than the Gemco rig, and tended to rise slowly in the deeper parts

of the hole. In comparison, the recoveries of the Gemco rig tended to fall slowly beyond depths of

around 60 metres. Nevertheless the recoveries are within acceptable limits for percussion drill

programs. The calculated average recoveries across all depths for each drill rig were 84.36 % for the

Gempak 200 rig, 73.75 % for the Gemcodril rig and 77.06 %, for the entire RC percussion program.




Figure 52 – Summary of RC percussion recovery data for the 2006-2007 RC percussion drilling program at Kay

Tanda and Pulang Lupa.


The sample recoveries for the diamond drilling program were calculated by measuring the retrieved

core lengths and comparing them to the run length. The data were recorded by MRL in a Core

Recovery database. The average core recovery of the entire drill program was 97.91%. Some 88.2% of

the core runs had 100% recovery (Figure 53). Figure 54 shows the average recoveries per drill-hole

during the progression of the core drilling program. The average recoveries of all diamond holes are

above 90%, with only four holes near the start of the program with recoveries of just under 95%. In

summary the recovery data for the diamond core are good.




Figure 53 – Summary of core recovery for the 2006-2007 diamond drilling program at Kay Tanda and Pulang

Lupa. 88.2% of core runs and 90.15% of drilled meterage recorded 100% core recovery. The total

average core recovery for the entire diamond drilling program was 97.91%.

Figure 54 – Summary of core recovery for the 2006-2007 diamond drilling program, averaged per drillhole and

arranged in order of completion. Samples recoveries are on the whole quite high.




15. SAMPLING PREPARATION, ANALYSES AND SECURITY

15.1 Sample Splitting, Reduction, Packaging and Labeling

15.1.1 RC Percussion Drilling

All intervals drilled by percussion drilling were sampled for assay except those that contained soil

overburden or back-fill material generated by drill-site preparation. The RC samples from each

sampling interval were directed through a cyclone (Appendix 2) and into pre-labeled high-density

polyethylene plastic sample bags (750mm x 500mm). The samples were then weighed on a calibrated

scale, with sample weights recorded to the nearest kilogram onto a Sample Description Form for later

computation of sample recovery. The samples were then emptied into a bucket of known diameter, and

the height of the sample in the bucket was measured for later computation of sample volume. The

bucket was then emptied into a Jones Splitter. The samples were split down to 1/8 volume by the Jones

Splitter, and these reduced samples were bagged for analysis. The remaining 7/8’s portions of the split

samples were retained as field duplicates. The samples for analysis were split directly into pre-labeled,

high-density, polyethylene plastic bags (400mm x 250mm) which were sealed with plastic-coated

metal twist ties. The bags had masking tape labels on their outside which recorded the hole number and

the sample depth. The large plastic bags used to capture the samples from the base of the cyclone were

re-used at the base of the Jones Splitter to capture the large field duplicate split. These duplicates are

stored in the Lobo sample storage facility.

The large field duplicate sample bags and the smaller assay sample bags were arranged in rows of 20

onto a canvas sheet away from the drill rig. To obtain rock chips for geological logging, the residual

7/8’s samples (field duplicate) were speared-sampled using a 2” PVC tube to yield a representative and

unbiased sample. These samples were dry-sieved with a metal sieve and then any remaining dust and

clay was washed by wet-sieving of the chips. The washed chips were then placed in a HQ core tray

with wooden blocks between the sample intervals ready for preliminary logging at the drill site. After

preliminary logging, a fraction of the washed chips was inserted into labeled 20-cell plastic chip-trays

while the remaining washed chips were stored in labeled plastic snap-seal bags. The samples in the

compartmented chip trays were logged in detail in the Lobo office. These chip trays are currently being

photographed.


During logging, MRL geologists marked up sections of the core for splitting, and they also supervised

and/or performed the sampling of the cut core. Sampling was conducted to geological boundaries.

Sampling boundaries were selected to coincide with alteration boundaries, boundaries of quartz vein

stockworks or quartz + base-metal vein stockworks, hydrothermal breccias boundaries, and to areas of

varying sulphide content. Higher gold grades are generally associated with zones of quartz stockwork

veining, veined breccias that contained moderate pyrite contents, quartz + base-metal veins and

veinlets, quartz-molybdenite veins, and silicified hydrothermal breccias. In general it is difficult to

correlate grade with visual features.




Diamond drill core was cut using an electric-powered, water-cooled diamond-bladed Dembicon Core

Cutter at the Lobo office (Appendix 2). PQ and HQ core were quartered for assay while NQ core were

halved for assay. During the cutting of core, where intersections of high grade or visible gold were

known to occur, each individual piece of core was initially wrapped in plastic or aluminium foil and

sealed with tape prior to cutting on the core saw to prevent breakage or contamination, and to prevent

parts of the sample being washed away during core cutting. Broken or soft sections of the core were

sampled by the geologists using a spatula and spoon before being placed in labeled plastic sample bags.

Diamond drill core was sampled and assayed at predominantly at one (1) meter and two (2) meter

intervals. Some portions of diamond holes near the surface were not assayed due to the presence of

younger unmineralized stratigraphy. Local portions of core were assayed at intervals of more than two

(2) meters however these comprised only 2.58 % of the diamond core samples (n=108) that were sent

for assay.

Table 11 – Proportion of sampling intervals for diamond drill core.

Diamond Core Sampling Intervals Count

% of samples

<1m 84 2.01

1m 3309 78.99

>1m but <2m 102 2.43

2m 586 13.99

>2m 108 2.58

TOTAL 4189 100 %

15.2 Procedures Employed to Ensure Sample Integrity

The following are some of the procedures employed by MRL to ensure sample integrity during the

percussion and diamond drilling program:

Percussion drilling used the reverse circulation method to minimise side wall contamination of

the sample. Face-sampling hammers were used for the peruccion drilling also to minimise

sample contamination.

The sample hose from the drill rig to the cyclone and the cyclone were routinely cleaned after

each drill rod.

The sample splitter was routinely cleaned with compressed air from the drill rig to remove

traces of dust prior to each new sample being split.

The few wet samples encountered were first sun-dried before being homogenized and split

manually.

Percussion samples were sealed in heavy-duty double layered plastic bags. McPhar sample

number stubs were used to label each drill sample.

An MRL staff member was permantently assigned to each percussion rig during the duration of

sampling and splitting. All splitting was supervised by an MRL geologist.




An engineer was assigned to each coring rig to record core recoveries, to oversee the core

orientation process and to ensure that core was appropriately handled and packed after each

core run.

All transport off samples was either undertaken by or accompanied by an MRL staff member

and MRL internal sample despatch forms were used inmost cases for the transport of samples

between the drill site and the Archngel camp and then to the Lobo office.

Diamond core boxes were packed with foam inserts during transport to minimize breakage of

the core prior to logging and sampling.

Prior to sending samples to the McPhar Laboratory, all sample bags and number strings were

checked for continuity and sample bag integrity.

All diamond core and RC chips were photographed as a routine documentation of samples.

Data used to calculate RC percussion recoveries were measured onsite after each drill sample.

Diamond drillcore that was broken or friable was cut only when the core was wrapped tightly

in polyurythene plastic and tape to ensure fragments were not lost during core splitting.

Drillcores are stored in locally constructed plywood core boxes with inscribed metal tag labels

on the end of each core box detailing boxnumber, drillhole number, depth from and depth to.

All percussion and core samples are stored undercover in a secure yard.

15.3 Use of MRL Employees in Sampling Procedures

Trained MRL employees were involved at all stages of the sampling, sample packaging and sample

transportation process. During the RC percussion drilling program two (2) MRL staff members were

based full time at the drill rig site to supervise the drilling, sampling and data recording and to complete

preliminary geological logs of the percussion drilling samples. They included a geologist and a drill-

site supervisor (engineer). Between 9 and 14 trained employees of MRL acted as samplers. For the

diamond drilling program one MRL staff member was assigned full-time to the rig (drill-site

supervisor/engineer) while an MRL geologist would visit the drill-rig on most occasions twice daily

and an environmental officer would visit the rig periodically. Between 2 and 4 haulers would be

employed to assist around each diamond drill rig, depending on the site access. All transportation of

samples was done by MRL staff members with employed laborers as aides where necessary.

15.4 Sample Security and Transport

15.4.1 RC Percussion Drilling

The Kay Tanda – Pulang Lupa drilling was conducted under the supervision of Mr. James A. Climie,

Professional Geologist, a geologist and President of Mindoro. To ensure drill site quality control an

MRL geologist was assigned permanently on site during all of the reverse circulation drilling. The

geologist acted as overall supervisor of the drilling operation, including the sampling protocol from

splitting to bagging in pre-labeled plastic sample bags. The geologist also supervised transport of

samples for assaying, as well as field duplicates, from the drill site to the Lobo Office where the




samples were received by MRL personnel. MRL personnel were also assigned to manage the sample

preparation and dispatch to McPhar Laboratories, and the archiving of field duplicates.

Both sets of split sample bags from the percussion drilling sites were transported to the Archangel field

camp at the end of each days drilling, and were accompanied by MRL staff who were responsible for

sample security. At the Archangel field-camp the numbers of samples were checked by assigned MRL

personnel, and sample details were often listed on an Internal Dispatch Form. The samples are then sent

to the main Lobo office by pick-up utility or jeep together with the dispatch form, again accompanied

by an MRL staff member. Upon receipt of samples at the Lobo office, the core-house supervisor

checked the numbers of samples and their labeling relative to the Internal Dispatch Form. The samples

were laid out and checked to ensure the integrity of the sample strings. On a sample by sample basis the

masking tapes were removed from the outside of each sample and the heavy-duty plastic sample bags

with their contained samples were placed in a second plastic bag. A McPhar Sample Number Stub was

then inserted between the two (2) plastic bags. The outer bags were tied with plastic-coated metal twist

ties. The sample details were then recorded into an MRL Sample Ledge (hole number, depth from,

depth to and McPhar stub number). The prepared samples were then placed into empty rice-sacks and

transported to McPhar Laboratories in Manila using a company-owned vehicle and accompanied by

MRL personnel, together with McPhar Sample Submission Forms. All samples were delivered by

MRL directly to the McPhar Laboratory in Manila without the use of third parties.

Counting and cross-checking of samples as listed on the McPhar Submission Forms was done by

McPhar supervisors and witnessed by MRL personnel. Secured sample bags were opened by McPhar

supervisors only, at their laboratory in Makati City, Metro Manila. All written instructions for sample

preparation and analyses accompanying the samples submission forms are received in their laboratory.

A sample tracking, quality control, and reporting system is maintained between MRL Gold and

McPhar.


During diamond drilling, a site-supervisor/mining engineer was assigned permanently on site for each

day and night shift. The site-supervisor over-saw the retrieval of the drill core from the core tubes,

placement in core boxes, security strapping of the core boxes and transport to the Archangel field

office. Core boxes at the drill rig were sealed by heavy-duty polyurethane plastic packing bands then

transported to the Archangel Camp located some 1.5 to 2.0 km from the drill pad and then a further 17

km to the logging facility in the Lobo office. E.M. Abrasaldo (Vice President - Mindoro, Phil.), F.T.

Lab-oyan (Project Manager - Mindoro, Phil.) and I.A. Fetiza, Jr. (Project Geologist, Archangel Project,

Mindoro, Phil.) assisted in ensuring the safety and security of the core boxes, especially those from

mineralized zones during transport from the drill rig to the core storage area. The core storage and

logging facility was under the supervision of Mindoro geologist at all times. This facility is within the

grounds that house the office and personnel quarters, so samples were never left unattended.




15.5 Analytical Laboratories

Two analytical laboratories were used for analysis of samples generated by the drilling programs at

Kay Tanda.

The principal laboratory was: McPhar Geoservices (Philippines) Inc. The McPhar laboratory generated

all of the primary assay data pertinent to the drill programs that are the subject of this report. The

address of this laboratory is:

Head Office: 3/F P & L Bldg, 116 Legaspi St, Legaspi Village, Makati City (tel: 8158191 to 94).

Assay Laboratory: 1869 P.Domingo St, Makati City, Manila (tel: 8961656, -1681, -7973).

Postal Address: PO BOX 7356, Domestic Airport Post Office, Domestic Rd, Pasay City 1300, Metro-

Manila, Philippines – Fax: 8158195.

Web Address: http://www.mcphar.com.ph

McPhar is an ISO-9001:2000 accredited laboratory and has been servicing the Philippines Mining

Industry since 1971. The principal chemist in charge is Art del Mundo ([email protected]). McPhar

are currently seeking accreditation for ISO-17025 which is specific to analytical laboratories.

A secondary laboratory was used as an independent check on the McPhar laboratory for the RC

Percussion drilling sample assays. This laboratory was Intertek in Jakarta. Samples were sent to

Intertek’s office in Manila from where they were were forwarded to Jakarta. The addresses of the two

Intertek offices are:

Manila: Intertek Testing Servics Phils. Inc. 3/F ITS Building, 2310 Pasong Tamo EXT, Makati City,

Philippines [GPO Box 2999].

Tel: (632) 819-5841 to 48.

Contact – Ms Becky Torre.

Jakarta: Intertek. Cilandak Commercial Estate 103E, JI Cilandak KKO, Jakarta 12560.

Tel: (632) 819-5841 to 48.

Contact – Ms Becky Torre.

15.6 Qa-Qc Procedures Employed

The principal Qa-Qc procedures employed by MRL, in addition to those employed independently

within each laboratory, are summarized in Figure 55. A total of 9873 RC samples and 4192 core

samples were submitted to the McPhar Laboratory for analysis.

The samples that were submitted by MRL as independent checks on the sampling, sample preparation

and analytical procedures comprise:

1) 121 field duplicates. These duplicates were taken to test the efficacy of the splitting procedure

at the drill site. Selected samples of field duplicates stored in the MRL core storage facility




were re-split using the same Jones Splitter to generate a 2nd 1/8 volume sample that was sent to

the McPhar laboratory for analysis. Samples were submitted with MRL standards and blanks.

2) 144 coarse rejects (125 RC samples and 219 core samples). These duplicates were created from

the McPhar set of coarse rejects and resubmitted to McPhar for assay. They were designed to

test the reliability and representivity of the McPhar sub-sampling of the coarse-crushed sample.

3) 148 pulp duplicates. The pulp duplicates were resubmitted to McPhar laboratory. They were

taken to test the degree of homogeneity of the McPhar pulps.

4) 437 pulp duplicates (Independent Laboratory). One in every thirty (1/30) McPhar pulp

samples were sent to Intertek (independent laboratory). They were taken to further check on the

degree of homogeneity of the McPhar pulps as well as to independently check on the accuracy

of the McPhar analyses.

5) A series of analytical certified standards and in-house blanks were routinely submitted by MRL

to the McPhar laboratory as well as doing submission of the sets of samples 1) to 4) above.

These are discussed in Section 15.6.3 below.

Figure 55 – Flow chart illustrating the basic Qa-Qc system employed by MRL during the RC percussion and

diamond drilling program at Kay Tanda and Pulang Lupa.




15.6.1 Sample Preparation in Laboratory

The sample preparation procedures employed at the McPhar Laboratory are summarized by the flow-

chart below (Figure 56). Three sets of reject samples are generated by McPhar, coarse rejects, fine

rejects (bulk pulp) and the final sub-sampled pulp. Following initial storage of rejects on the McPhar

premises, the coarse and fine rejects are returned to MRL and stored at the Lobo sample-storage

facility.

At the McPhar Laboratory, rock-chip, core and percussion samples weighing 1-3 kilograms each are

initially dried at 105°-110°C in a gas-fired walk-in oven for around 8 hours for moist samples and 4-6

hours for drier samples, crushed to -1/4” to -1/8” size by a Bico-Braun or TM Engineering Rhino jaw

crusher. The samples are then split by riffle divider to obtain approximately ½ to 1 kilogram of sample.

The 1st half of the split (½ to 1 kilogram sample) is fine pulverized to -200 mesh using an LM-2

pulverizer (Lab Tech Essa) and a TM 100ml vibratory pulverizer, while the other half of the sample

(coarse rejects) go into storage. The -200 mesh sample is mixed and sampled by random stab sampling

to acquire a pulp sample of 200-250g. The remainder of the pulp goes into storage as a fine reject. The

pulp sample is then further sub-sampled to yield a 50g sample which is weighed using an automated

weighing and data-capture system prior to conducting fire assay and other analyses by AAS.




Figure 56 – Flowchart of sample preparation process at the McPhar Laboratory




15.6.2 McPhar Analytical Methods and Protocols

Sample analyses at the McPhar Laboratory were done on the same premises as the sample preparation.

Table 12 lists the analytical methodologies used by McPhar.

Table 12 - Summary of analytical methods and detection limits used for precious and base metal determinations.

Element Method of Analyses Detection Limit Laboratory Code

Gold Fire Assay on 50 g sample with AAS finish 0.005 ppm FA50

Silver AAS following hot HCl & HCl/HNO3 leach 0.5 ppm GA30

Copper AAS following hot HCl & HCl/HNO3 leach 5 ppm GA30

Lead AAS following hot HCl & HCl/HNO3 leach 5 ppm GA30

Zinc AAS following hot HCl & HCl/HNO3 leach 5 ppm GA30

Molybdenum AAS following hot HCl & HCl/HNO3 leach 5 ppm GA30

Arsenic Vapor Generation/AAS from acid leach 1 ppm GA30

Gold analyses

In the majority of cases gold analyses were performed by fire assay on 50-gram samples. However

according to McPhar, for samples with high sulfide contents which are difficult to fuse, they reduce the

weight to 30 grams to be able to get an “ideal” Pb button. According to McPhar, typically less than 5%

of all tests are done on a 30-gram sample. The analytical protocol is shown in Figure 57. The 50-gram

samples were blended with appropriate flux and a reducing or oxidizing agent added. The blended

material was fused at about 1090°C for approximately 1 hour. After cooling, the lead button was

separated from the slag. Depending on the size of the lead button [after placing niter (an oxidizing

agent)], the samples were roasted in an electric furnace, a process called cupellation at 860°-900°C to

produce a dore bead. The dore beads were then flattened and washed in dilute nitric acid. Finally, the

prills were annealed at 800°C and then weighed in a microbalance with 0.001 mg sensitivity. The prills

were then dissolved for an AAS finish. Detection limits for Au were 5 ppb (0.005 ppm).

Silver, copper, lead, zinc and molybdenum analyses

Analyses for Ag, Cu, Pb, Zn and Mo were performed on 25-gram samples by AAS following aqua

regia digestion. The analytical protocol is shown in Figure 58. 1 ml of concentrated HNO3 was added to

the samples. The solutions were then heated until all the sulfides were dissolved. After this, 3 ml of

concentrated HCl was added and the solutions were heated in a boiling water bath for 4 hours. The

samples were then set to mark to 10 ml using 1N HCl, then shaken and settled overnight. Finally, the

solutions were aspirated into an AAS to determine the analyses. Detection limits were 0.5 ppm for Ag

and 5 ppm for Cu, Pb, Zn and Mo. Appendix 7 contains an example copy of the original McPhar

sample assay results.

Arsenic analyses

Arsenic was analysed by vapor generation and AAS on an acid leach. The analytical protocol is shown

in Figure 58. Detection limits were 1 ppm for As.




Figure 57 – Procedure for gold fire assay by the McPhar Laboratory.




Figure 58 – Procedure for Cu, Pb, Zn, Ag by AAS and As by VGA/AAS used by the McPhar Laboratory.

15.6.3 MRL Blanks and Standards

MRL External Blanks

Mindoro used two different samples as external blanks during the analysis of core samples and RC

percussion samples. An unaltered andesite in slab form was routinely submitted with the core samples

while pulverized coralline limestone were inserted in the batches of RC percussion samples. Both types

of blanks (andesite and limestone) were initially submitted for bulk assaying to an umpire laboratory

(Intertek Laboratory) in Jakarta, Indonesia. They returned Au values of <0.005 g/t or below the




detection limit for both of these blanks. The external blanks were submitted as a check on levels of

possible contamination within the McPhar laboratory.

A total of 436 powdered limestone blanks were submitted during the course of analysis of the RC

percussion samples whilst a total of 139 andesite blanks were submitted during the course of analysis

of the core samples. A total of 575 external blanks were submitted during the course of the drilling

program, result in an average submission rate of 1 per 24.45 unknown samples.

Plate 54 – MRL inhouse limestone blank.

Figure 59 - MRL in-house limestone blank analytical results for 436 blank submissions with every RC

drillhole.




Figure 60 - MRL in-house andesite blank analytical results for 139 blank submissions with diamond drill holes

KTDH-05 to 24 and PLDH-01 to 02.

The external limestones blanks submitted by MRL with the RC samples were all consistently at or

below the detection limit of 0.005 g/t Au with the exception of five (5) blanks that were submitted with

samples from hole KTRC-13. These 5 samples however had very low levels of Au which were close to

detection limit and within the range of analytical variance at the limits of detection.

The external andesite blanks submitted by MRL with the diamond core samples were mostly at or

below the detection limit of 0.005 g/t Au, although a higher proportion of submitted andesite blanks

yielded Au values above the detection limit. The 19 anomalous results for those blanks submitted with

the core samples range in grade from 0.006-0.124 g/t with a low average of 0.018 g/t Au. However,

most of the subset of 19 anomalous samples had Au values that were close to detection limit and within

the range of analytical variance at the limits of detection.

Given that the McPhar internal blanks yielded values that were consistently at or below detection limit

(Section 15.6.4), it is concluded that the external MRL andesite blank may not have been an ideal

blank.

MRL External Standards

As an independent check on the analytical procedures of the McPhar Laboratory, MRL submitted a

series of certified gold standards, one standard being inserted for every 20-25 samples on average.

Twelve certified standards were purchased from Geostats Pty. Ltd of Australia. Their grade range from

0.03 g/t Au to 0.85 g/t Au (Table 13) are typical of the low to medium range in Au grades found in

low-grade stock-work related epithermal gold deposits such as Kay Tanda. Details of seven of these

standards are provided in the attached certificates in Appendix 5. A total of 587 external standards were

submitted during the course of the drilling program, resulting in an average submission rate of one per

23.95 unknown samples. The frequency of external sample standard submission to the McPhar

Laboratory is listed in Appendix 13 together with the relevant drill holes and sample batch numbers.

Each sample standard weighed 100 grams.

In general the external standards that were submitted by MRL indicated that the results of McPhar were

reliable, with only the odd analytical outlier in some standards. The only standard that persistently




analysed outside of the recommended accepted range was G905-2 (0.52 ± 0.08 [2 ]). The generally

excellent behaviour of all other external standards submitted by MRL (except for the odd outlier)

suggests that the G905-2 certified standard is itself problematic. Thus disregarding standard G905-2,

only 8 out of 567 external standards feel beyond two (2) standard deviations from the accepted mean.

In summary, the external standards suggest that the McPhar analyses are suitably precise.

Table 13 – Description of Certified Standards submitted by MRL during the analyses of Batches 1 to 9.

50g Fire Assay Statistics - Gold (ppm)

Product Code Mean 1- Stdev Count DESCRIPTION OF SOURCE / MATRIX

G300-1C 0.03 0.01 155 Fresh basic milled waste ex Eastern Goldfields

G300-2 0.06 0.02 89 Oxide ex Eastern Goildfields

G302-10 0.18 0.03 79 Milled Waste Material - Basic rock

G303-8 0.26 0.03 83 Gold Tail sample minor sulphide

G398-9 0.33 0.03 84 Diluted Waste. Oxide with quartz and feldspar added.

G904-6 0.36 0.03 81 Cut Off Material SWest Mineral Field

G306-1 0.41 0.03 85 Cut-off Ore Oxide Material

G902-3 0.43 0.03 81 Low grade sulphide ore ex Pilbara

G905-2 0.52 0.04 82 Composite of low grade mine ores and waste

G902-9 0.60 0.04 83 Massive Pyrite ex NW Tasmania

G901-9 0.69 0.04 88 Low grade Minor Sulphide - Eastern Goldfields

G301-1 0.85 0.05 91 Gold Ore ex Eastern Goldfields

Table 14 – Frequency of submission of Certified Standards by MRL during the analyses of Batches 1 to 9.

BATCH

Gold CRM Accepted Au Value 1 2 3 4 5 6 7 8 9 TOTAL

G301-1 0.85 ± 0.10 g/t 10 11 17 2 10 6 56

G905-2 0.52 ± 0.08 g/t 8 7 5 20

G902-9 0.60 ± 0.08 g/t 16 16

G901-9 0.69 ± 0.08 g/t 9 22 19 4 12 2 2 70

G306-1 0.41 ± 0.06 g/t 9 8 17

G904-6 0.36 ± 0.06 g/t 24 19 10 8 3 8 72

G902-3 0.43 ± 0.06 g/t 15 19 4 3 20 6 4 9 80

G398-9 0.33 ± 0.06 g/t 9 1 8 18

G303-8 0.26 ± 0.06 g/t 12 20 4 24 3 39 1 103

G302-10 0.18 ± 0.06 g/t 13 10 11 2 18 2 18 74

G300-2 0.06 ± 0.03 g/t 3 2 4 9

G300-1C 0.03 ± 0.02 g/t 5 15 18 12 2 52

TOTAL 88 41 64 59 71 62 54 122 26 587




Table 15 – Sub-division of hole into batches (1-9).

Plate 55 - GeoStats Reference G904-6.

Figure 61 - MRL external certified gold standards at 0.03, 0.06, 0.18, 0.26, 0.33, 0.36, 0.41 and 0.43 g/t Au

submitted with batches 1-9 as defined in Table 15.

BATCH Hole Nos.

1 KTRC 1-20

2 KTRC 21-40

3 KTRC 41-60

4 KTRC 61-80

5 KTRC 81-106

6 PLRC 1-20

7 PLRC 21-41

8 KTDH 1-20

9 KTDH 21-24 and PLDH 01-02




Figure 62 - MRL external certified gold standards at 0.52, 0.60, 0.69 and 0.85 g/t Au submitted with batches 1-9

as defined in Table 15.

15.6.4 McPhar Blanks and Standards

The McPhar Laboratory conducted 1238 analyses of internal standards (Au, Ag and basemetals) and

365 analyses of Au blanks in the course of analyzing the samples from the Kay Tanda and Pulang Lupa

drilling programs during 2006 and 2007. The types of standard and number of analyses per subset of 20

holes are in Table 16.

McPhar ran repeated assays on a series of 14 Au standards and 19 Ag standards. Three (3) of the Au

standards were only run once and so are not plotted in Figures 63 and 64. The plotted McPhar Au

standards range from 0.01 g/t Au (close to detection limit) to 1.857 g/t Au. McPhar analysed 360 Au

standards during the course of the generation of 14062 Au assays from the MRL drilling (diamond +

RC percussion drilling), resulting in a Au-standard analysis rate of 1 standard per 39.06 unknown

samples.




Table 16 – Analytical standards submitted by McPhar during analysis of Batches 1-9 (see Table 15).

STANDARD STANDARD TYPE SUBSET NUMBER

1 2 3 4 5 6 7 8 9

K2L Au 7 9 10 12 33 6 77

RMX Au 14 13 25 10 5 14 10 24 1 116

RMX2 Au 5 8 7 20

KKM Au 7 11 4 25 3 50

RL Au 10 4 3 13 2 1 2 35

RL2 Au 8 12 2 22

OxE42 Au 4 1 1 6

OxA45 Au 1 1

OxA26 Au 1 1

OxH37 Au 3 1 1 5

OxI40 Au 2 1 1 1 5

A2BB Au 10 7 17

SH13 Au 3 1 4

SE19 Au 1 1

OREAS 62 Pb Ag Cu 2 1 1 4

CDN-CGS-5 Cu 1 1 2

McPT305 Ag* Cu Pb Zn 3 1 1 5 3 2 15

GBM903-13 Ag Cu* Pb* Zn* As* 2 2 8 3 2 16 2 35

GB-8a Ag Cu Pb Zn 1 3 6 1 11

W-1 Mo As* 4 1 1 6

OREAS 94 Ag Pb Zn 4 3 3 2 12

OREAS 92 Ag Cu Pb Zn Mo As 1 1

1-B Ag Cu Pb Zn Mo As 13 16 10 56 18 113

I-1 Ag Cu Pb Zn Mo As 13 8 8 25 8 62

L3 Ag Cu Pb Zn Mo As 6 3 9

I-3 Ag Cu Pb Zn Mo As 1 6 1 11 4 23

GBM399-5 Zn* 1 1

GBM399-6 Ag Pb Zn* As* 1 4 6 11

GBM399-8 Zn* 4 1 5

GBM398-4C Ag Cu Pb* Zn/Zn* 4 2 1 4 2 6 2 21

A2G Ag Cu Pb Zn Mo As 5 7 8 2 22

A2Ga Ag Cu Pb Zn Mo As 1 14 27 17 59

PFM Ag Cu Pb Zn Mo As 24 14 14 10 24 4 37 127

OREAS 90 Cu Pb Zn As 1 22 5 13 8 49

OREAS 42P Ag Cu Pb Zn Mo As/As* 29 12 10 22 1 74

OREAS 44P Ag Cu Pb Zn Mo As 1 7 14 7 3 2 9 30 73

GB-396-1C Ag Cu Pb Zn* As* 16 2 10 9 12 10 15 1 75

PFH Ag Cu Pb Zn Mo 2 6 13 7 9 1 12 15 3 68

BLANK (Au) 46 20 31 33 39 37 30 105 24 365

Total No. of Standards (Au only & other multi-element standards). 1238

Total No. of Au Blanks. 365




Figure 63 - McPhar analytical gold standards at 0.01 (x2), 0.064, 0.195, 0.551, 0.61, 0.65 and 0.667 g/t Au

submitted with batches 1-9 as defined in Table 15.




Figure 64 - McPhar analytical gold standards at 1.286, 1.315 and 1.857 g/t Au submitted with batches 1-9 as

defined in Table 15.

For the silver standards, only those standards for which three (3) or more analyses were conducted and

which are above the Ag detection limit are plotted in Figures 65 and 66. The plotted McPhar Ag

standards range from 0.7 g/t Ag (close to detection limit of 0.5 ppm Ag) to 158.8 g/t Ag.

McPhar analysed 431 internal Ag standards during the course of the assaying of 14061 samples from

the MRL drilling (diamond + RC percussion drilling) resulting in a Ag-standard analysis rate of 1

standard per 32.62 unknown samples.

McPhars’ practice during analysis has been to repeat the entire batch of samples whenever an internal

standard has assayed beyond its recommended range, and to only report the assay of unknown samples

to the client whenever a suspect analytical batch has been corrected by a second run. Any repeat

analyses are conducted on new aliquots of sample and a second set of digests. The reported McPhar

internal standards are consistently well behaved, as would be expected with such a process (Figures 63-

66). The MRL internal standards, which serve as an independant check on the McPhar results (Section

15.6.3), have indicated an acceptable level of accuracy and precision for the McPhar assays as reported

to MRL.




Figure 65 - McPhar analytical silver standards at 0.7, 1.4, 2.5 (x2), 8.1 (x2), 21.5 and 2.8 g/t Ag submitted with

batches 1-9 as defined in Table 15.




Figure 66 - McPhar analytical silver standards at 3.4, 24.2, 48.7 and 158.8 g/t Ag submitted with batches 1-9 as

defined in Table 15.

McPhar analysed 365 analyses of Au blanks in the course of analyzing the samples from Kay Tanda

and Pulang Lupa. The results are shown in Figure 67.

MCPHAR INTERNAL BLANKS

0.000

0.002

0.004

0.006

0.008

0.010

0.012

0.014

0.016

0.018

0.020

Au

g/t

Accepted Value <0.005 g/t

Figure 67 - Plot of the internal blanks run by McPhar during analysis of the 2006-2007 RC percussion and

diamond core samples. All blanks that were analyzed with the 147 RC drill holes and 26 core holes lie on or close

to the detection limit, indicating no significant contamination in the sample preparation procedure or during the

analysis. Values below the detection limit (reported as <0.005 g/t) are plotted at half the detection limit.




15.6.5 Results of Repeat Analyses on Sample Solutions

The McPhar laboratory routinely conducts duplicate analysis of Au and other elements as a check on

analytical reproducibility. Repeats are routinely conducted on all elements being analysed and are

typically on every 10th sample. In addition to these regular repeats, samples with high Au content are

usually re-analysed. Figure 68 plots the values of Analyses-1 versus Analysis-2 for Au, Ag, As, Cu, Pb

and Zn for analytical repeats from the McPhar Laboratory for the percussion and diamond drilling

program at Kay Tanda and Pulang Lupa combined. The corrrelations plotted in Figure 68 all have R2

values that are above 0.99, with the Au-1 versus Au-2 correlation being 0.9996. The laboratory repeats

are based on 1800 to 1802 repeat analyses that are spread evenly throughout the entire database.




Figure 68 (overleaf) - Plot of analytical repeats conducted by McPhar Laboratory on Au, Ag, As, Cu, Pb and

Zn. McPhar routinely re-analyze every 10th sample solution and also run repeats on samples with anomalous gold,

precious metal or base-metal values. Values at less than the detection limit were assigned a value of half the

detection limit. Au-1 versus Au-2 and Ag-1 versus Ag-2 have excellent correlation coefficients of 0.9996 and

0.9979 respectively. The following points extend beyond the limits of the plots [Au, 2 points to 246.76 g/t; Ag, 10

points to 1717.8 g/t; As, 1 point at 2801; Pb, 2 points to 12.06%].

15.6.6 Results of Duplicate Pulp Assays

A total of 148 of the McPhar pulp rejects were resampled and analyzed. Samples were selected from

previously submitted batches and were selected to cover a range of sample grades, including some

high-grade samples, a range of lithologies and a range of holes from the core and RC drilling programs,

so as to be representative of the 2006 and 2007 drilling program as a whole. Figure 69 illustrates the

spread in samples selected for re-assay of pulps per lithology. The duplicate pulp analyses were

conducted to test for homogeneity of the pulps generated by McPhar. During the milling process,

samples may not be milled sufficiently well, or coarse gold may smear in the mill, in which case

multiple assays of pulps may yield poor precision (i.e. poor repeatability). Inversely, agreement

between assays of duplicates of the pulp would indicate that the McPhar milling procedure was

efficient and generated a suitably homogeneous pulp.

Figure 69 - Histogram of frequency of lithologies selected for analysis of duplicate splits of McPhar pulps.

Figure 70 - Spread of Au grades of samples selected for analysis of duplicate splits of the McPhar pulps.

Samples were selected from across a wide range of Au grades so as to allow a representative test for milling

efficacy with varying Au enrichment, and to test the reliability of the pulp at higher Au grades where Au may

become coarser.




Figure 71 - Plot of analyses for Au, Ag, As, Cu, Pb and Zn on two different splits of the same pulp generated by

the McPhar Laboratory. Values at less than the detection limit were assigned a value of half the detection limit for

Au and Ag. Good reproducibility is observed for the precious metals (Au and Ag) and the base metals (Cu, Pb

and Zn). Reproducibility for As was fair. Au shows some increased scatter at higher values hinting at a possible

nugget effect in the higher grade samples. The following points extend beyond the limits of the plots [Au, 2

points to 70.97 g/t; Ag, 1 point at 57.15 g/t; As, 1 point at 515 ppm; Cu, 1 point at 1.09%; Zn, Pb, 1 point at

1.64%].




Figure 71 shows the correlation between the two sets of pulp splits for Au, Ag, As, Cu, Pb and Zn. For

Au and Ag, all duplicate data were plotted and assays that were below the detection limit were assigned

a value of half the detection limit. Some samples were excluded from the plots of As, Cu, Zn and Pb

when one or more of the pair of results reported by McPhar was below the detection limit (e.g. <0.50,

<5) due to the inexact assignment of its true assay value. Both values were computed using Excel

equations. The R2 value for Au, Ag, Cu, Pb and Zn were all good at above 0.98. The arsenic (As) R2

value was fair at 0.9304.

15.6.7 Results of Duplicate Coarse Rejects

A set of 125 coarse reject RC percussion samples and 19 coarse reject core samples were submitted to

McPhar for resampling and assay. Resampling was done by taking a duplicate split off the reject 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 McPhar to ensure

that the samples taken for analysis were representative of the bulk sample.

Figures 72 and 73 show the correlation between the two sets of RC and core samples for Au, Ag, Cu

and Zn. Samples were excluded from the plots when one or more of the pair of results reported by

McPhar were below the detection limit (e.g. <0.50, <5) because of the inexact assignment of their true

assay value. Tables 17 and 18 list the correlations for these elements as well as for Pb, As and Mo.

Table 17 - Summary of comparison between original and duplicate coarse reject assays for RC samples.

Au Au1 Ag Ag1 Cu Cu1 Pb Pb1 Zn Zn1 Mo Mo1 As As1

Average 1.26 1.30 4.22 3.62 0.03 0.03 0.05 0.05 0.11 0.11 9.68 8.99 57.07 57.38

R 0.996 0.992 0.997 0.973 0.970 0.887 0.995

R2 0.992 0.985 0.994 0.947 0.941 0.787 0.990

Table 18 - Summary of Comparison between original and duplicate coarse reject assays for core samples.

Au Au1 Ag Ag1 Cu Cu1 Pb Pb1 Zn Zn1 Mo Mo1 As As1

Average 3.05 2.33 2.37 2.26 0.02 0.02 0.07 0.07 0.11 0.10 14.78 14.78 37.71 39.74

R 0.985 0.976 0.991 0.991 0.970 0.998 0.988

R 0.970 0.952 0.983 0.982 0.940 0.996 0.976

The correlations for the duplicates pairs of coarse reject samples for the RC chips are good for the bulk

of the analyses at lower grades (Au & Ag < 20 g/t; Zn < 1%; and all of the Cu values). There is a slight

bias to lower grades in the duplicate samples in samples which have higher initial grades for Au, Ag

and Zn. This slight bias is likely a function of the coarser grain-size of the base-metal mineralization

that is associated with higher base-metal and Au grades. This bias affects a relatively small proportion

of the samples.




Figure 72 – (top left) Plot of duplicate analyses of Au from coarse reject samples of RC chips. The top right

hand graph shows an expanded plot of the Au values. The black line is the 1:1 line while the red line is the

regression line. (Middle) Plot of duplicate analyses of Ag from coarse reject samples of RC chips. The right hand

graph shows an expanded plot of the Ag values together with a regression line (red). (Bottom) Plot of analyses of

Cu and Zn from duplicate analyses of separate coarse rejects. The slightly poorer correlation for Ag and Zn is

heavily influenced by the 3 samples at high Ag values and the one higher Zn value in the original assay set.




Figure 73 - Plots of duplicate analyses of Au, Ag, Cu, Zn, Mo and As from coarse reject samples of diamond

drillcore. The black line is the 1:1 line while the red line is the regression line.

15.6.8 Results of Field Duplicate Samples

A total of 121 RC field duplicates were sent to McPhar for assaying. The duplicates were re-split off

the original samples stored in the Lobo sample storage facility, using the same Jones splitter, and were

collected at the end of the drilling program. A 1/8 aliquot of the stored samples were taken for analysis

of field duplicates. McPhar employed the same sample preparation, milling and analytical procedures




as was used in the original assay runs. The samples were selected to cover the full range of Au-grades

at Kay Tanda-Pulang Lupa, and to extensively cover the different stages and spatial distribution of the

drill program, so as to provide a representative check on the efficacy of the original sample splitting

process. The analytical reproducibility of field duplicate samples is a measure of the representivity of

the original 1/8 split of the sample, a check on the reliability of the sample reduction procedure

(splitting) undertaken by MRL at the drill rig site.

Figure 74 - Histogram of frequency of lithologies selected for analysis of field duplicate samples in RC and core

samples by McPhar.

Figure 75 - Spread of Au grades of samples selected for analysis of field duplicates by McPhar. Samples were

selected from across a wide range of Au grades so as to allow a representative test for sample reduction (splitting)

at varying gold grade. Samples were chosen to cover most of the natural range in Au grade at Kay Tanda-Pulang

Lupa.




Figure 77 shows the correlation between the two sets of field duplicate samples for Au, Ag, Cu, Pb, Zn

and As. Samples were excluded from the plots when one or more of the pair of results was reported by

McPhar below the detection limit (e.g. <0.50, <5), because of the inexact assignment of its true assay

value. The correlations of determinations (R2) are indicated in the plots.

The correlations of determination (R2) values for Au and Ag in the sets of field duplicates for RC

samples were 0.92 and 0.93 respectively, and for Au in core samples was 0.94. The correlations for

arsenic and the base-metals were better in the RC chips with R2 values of As (0.988), Cu (0.970), Zn

(0.9955) and Pb (0.997). These correlations are considered good, and a log-log plot of Au (Figure 76)

reveals an even spread about the one-to-one line for the field duplicate versus original Au assays.

Because the duplicates were measured at the end of the drilling program, this plot indicates that there

has been no significant deviation in the McPhar Laboratories ability to precisely determine Au over the

passage of time between the start of the drilling program and the end of the drilling program when the

field duplicate samples were submitted for analysis.

Figure 76 – Log-log plot of original versus field duplicate Au grades collected at the end of the drilling

program by-resplitting the stored field sample.




Figure 77 - Plot of analyses for Au, Ag, As, Cu, Pb and Zn on duplicate field samples by the McPhar

Laboratory. Good reproducibility are present for the precious metals (Au and Ag) and the base metals (Cu, Pb and

Zn). Reproducibility for As was fair. Au shows some increased scatter at higher values hinting at a possible

nugget effect in the higher grade samples. The following points extend beyond the limits of the plots [Au, 2

points to 70.97 g/t; Ag, 1 point at 57.15 g/t; As, 1 point at 515 ppm; Cu, 1 point at 1.09%; Zn, Pb, 1 point at

1.64%].




Figure 78 - Enlargement of Au-plot in Figure 77, showing the reproducibility of Au analyses in duplicate field

split samples of RC chips that assayed up to 3 g/t Au.

Figure 79 - Reproducibility of Au analyses in duplicate field split samples of diamond core. One data-point

(outlier) not plotted.




15.6.9 Results of Independent Laboratory Checks

A subset of 443 McPhar pulp samples, representing 3.15% of the 14,065 core and RC samples for the

Kay Tanda drill program (2006-2007), were submitted to Intertek (Jakarta) for analysis. The submitted

pulps were chosen to cover the full natural range of gold assays at Kay Tanda and were sampled from

all prior batches of submissions to McPhar. They included some high or bonanza grade samples as a

check as to whether there might have been smearing of coarse gold in the mill prior to sub-sampling of

the pulp for fire-assay. MRL also submitted certified reference standards and blanks with the batch of

pulps that was sent to the 2nd external laboratory. These samples were sent as a test of the accuracy of

analyses at the McPhar laboratory.

The analytical procedure requested for Intertek was the same as that used by McPhar (fire assay). The

results show a high correlation between McPhar’s original assay and that of Intertek for the pulps.

Figures 80 and 81 plot the duplicate data for the McPhar and Intertek Laboratory. Figure 80 is a linear

plot whilst Figure 81 is a log-log plot to enable better presentation of the data at low-Au values. The

average Au grade for the 441 samples analysed by McPhar (excluding two samples where assays were

below detection limit) was 1.13 g/t Au whilst the average grade of the same 441 duplicate pulp samples

analysed by Intertek was 1.15 g/t Au, equivalent to a percentage difference of just 1.53%.

Figure 80 - McPhar gold results plotted against Intertek gold results (both by fire assay) conducted on McPhar

pulps. The plot on the right is an enlarged scale of the plot on the left. The blackline is the 1:1 line while the red

line is a regression line. There is a slight bias between these two laboratories of around 1.53% variation on the

average grade of all samples compared. The correlations are high (R2 = 0.9874). Two points were below the

detection limit and so were not plotted. The interlaboratory agreement on the pulps samples is generally high,

although the independent laboratory (Intertek) yields slightly higher Au grades at the lower end of the grade

spectrum where most of the data-points lie.




Figure 81 - McPhar gold versus Intertek Au on McPhar pulps, plotted on a log-log scale. The data straddle well

along the one-to-one correlation line.

15.6.10 Results of Twin Holes

MRL drilled 2 sets of closely spaced twin holes and also one limited area of 12.5 x 12.5 metre in fill

drilling to determine both the reproducibility of mineralization on the ~4-8 metre scale and also on the

12.5m scale in one portion of the Kay Tanda deposit. Figure 82 shows the comparative Au results

between KTDH-02 and KTRC-16, which are located 7.25m apart. The results are relatively

comparable. Figure 83 shows the results for a cluster of 4 drill holes (KTDH-01, KTRC-22, KTRC 68

and KTDH 24). Again the results suggest reasonably good Au grade continuity in the area shown. The

apparent lack of continuity between the uppermost part of hole KTDH-01 and KTRC-22 is due to the

local preservation of the younger and unmineralized cover unit of the Balibago Andesite in the upper

part of hole KTRC-22.




Figure 82 - Gold analyses in twin holes KTDH-02 and KTRC-16, showing comparable assay results.

Figure 83 - Gold analyses in twin holes KTDH-01 and KTRC-22, and in adjacent holes KTDH-24 and

KTRC-68, showing good continuity of Au mineralization at the 4-12 metre scale.




15.7 Screen Fire Assays

Of the 14,541 gold assays in the Kay Tanda-Pulang Lupa assay database, only 41 intervals assayed

equal to or greater than 10 g/t Au. This equates to 0.289 % of samples falling in an arbitrary “high-

grade” bracket. The vast majority of samples are <= 5 g/t Au (99.32 % of intervals) whilst 97.82 % of

assay intervals are <= 2 g/t Au (Table 19). This grade distribution, which is heavily skewed to low

grades, is consistent with the main style of mineralisation where much of the Au occurs in low-grade

intervals comprising fine quartz, quartz-pyrite and pyritic fractures typical of low-grade dispersed

stockwork epithermal systems. Free gold has not been observed in hand-specimen from the lower-

grade intervals. However, some free gold was observed in KTDH-04 in an area of bonaza gold grades.

Table 19 - Au grade distribution at Kay Tanda – Pulang Lupa.

0.28 % > 10 g/t

99.72 % <= 10 g/t

99.32 % <= 5 g/t

97.82 % <= 2 g/t

94.81 % <= 1 g/t

87.83 % <= 0.5 g/t

The small fraction of samples with the highest gold grades may contain some coarse gold. The broad

interval of visible gold in hand specimen observed by the author in hole KTDH-04 yielded 14 of the 41

highest gold grades (>10 g/t Au). This spatial clustering suggests that the higher-grade intervals are

probably confined to discrete structures.

Twenty two of the 41 samples with highest gold grades (16.81 to 246.41 g/t Au) were sent to the

McPhar Laboratory for screen fire assay.

The main premise of screen fire assays is that a larger sample of the pulp is taken than is normally used

for traditional fire asay. The sample is screened to separate a coarser fraction from a finer fraction. In

this case a 75 micron screen was used (200 mesh). If any coarse gold was present in the sample then

there is usually a tendency for the coarser grains to be flattened during the milling process, rather than

fragment, resulting in a higher proportion of the Au reporting to the coarser size fraction. i.e. For

samples which have coarse gold, the majority of the grade is typically recovered in the oversize

fraction. A common concern with nuggety gold is that the standard fire assay method, with its small

sample aliquot, may often miss the coarser flattened grains and consequently, screen fire assays often

report higher gold grades than standard fire assays.

Figure 84 suggests that in the majority of high grade samples most of the gold reports to the -75 m

fraction. Figure 85 suggests that in most of the high grade samples the standard fire assay method

reproduces the results of the screen fire assay method with high precision. This indicates that although

there is a component of coarse gold within the highest-grade samples, the validity of the standard fire

assay method in the majority of samples does not appear to be compromised by the smaller sample

aliquots used for the standard fire assay Au determinations.




Figure 84 - Plot of the amount of gold (as g/t) contained within the coarse (+75 m) and fine (-75 m) fractions

of 22 screened samples sent for screen fire assay at the McPhar Laboratory. Only 2 of the 22 samples had

significantly more gold within the coarse fraction compared to the fine fraction. Most of the high grade samples

had around twice as much gold contained within the fine -75 m fraction compared to the coarse +75 m fraction.




Figure 85 - A plot of the average grade of 22 samples as determined by conventional fire assay (y-axis) and by

screen fire assay (x-axis). Apart from the two highest grade samples, the majority of high grade samples show

good correlation between the standard fire assay method and the screen fire assay method. The latter uses a larger

sample size. The R2 correlation of the 20 samples that are arrayed along the 1:1 line (excluding the 2 highest

grade samples) is 0.9862.

15.8 Measurement of Specific Gravity

A series of 345 core samples were sent to the McPhar Laboratory for specific gravity analysis. The

samples comprised mostly 15-25 cm long sticks of quarter or half core. The method used for SG

calculation was the volume-displacement method (Figure 87). Listed in Tables 20-22 are the number of

samples submitted for SG determination for each rock-type encountered in the Kay Tanda and Pulang

Lupa drilling programs as well as for each main alteration style and oxidation state. The average SG

values for these 3 categories are also plotted in Figure 86. The samples for SG measurement were

collected from nine cross-sections (Table 23) to ensure as much spatial representivity as possible across

the deposit.




Table 20 – Average specific gravity determinations for rocktypes at Kay Tanda and Pulang Lupa.

Lithological Symbol

Rock Type No. of SG

Measurements Average SG

(g/cc) 1 SD 2SD

pVa Porphyritic andesite 30 2.46 0.19 0.38

aVt Andesitic ash tuff 19 2.47 0.14 0.28

Vta Young andesitic tuff 33 2.54 0.13 0.25

Vtx Young dacitic tuff 28 2.55 0.12 0.25

Idp Dacite Porphyry 30 2.61 0.15 0.29

Sfg Sandstone-Siltstone 24 2.62 0.28 0.56

dxt Dacitic lithic tuff 25 2.61 0.18 0.36

Scg Conglomerate 21 2.61 0.18 0.36

Vcap Young andesitic flow 14 2.62 0.28 0.56

pVd Porphyritic dacite 23 2.62 0.20 0.40

Idio Diorite 25 2.62 0.12 0.25

dVt Dacitic ash-lapilli tuff 25 2.64 0.16 0.33

Ls Limestone 23 2.74 0.16 0.32

Iqd Quartz Diorite 25 2.75 0.26 0.52

Total 345

Table 21 – Average specific gravity determinations for alteration types at Kay Tanda and Pulang Lupa.

Alteration Type No. of SG

DeterminationsAverage SG

(g/cc)1 SD 2SD

Advanced Argillic 10 2.404 0.125 0.249

Propylitic 39 2.512 0.153 0.306

Argillic 106 2.587 0.209 0.418

Intermediate Argillic 69 2.612 0.184 0.368

Montmorillonite 14 2.631 0.295 0.590

Phyllic 84 2.639 0.175 0.350

Micritic-Dolomitic 23 2.736 0.161 0.323

Total 345

Table 22 – Average specific gravity determination for oxidation types at Kay Tanda and Pulang Lupa.

Oxidation Style No. of SG

DeterminationsAverage SG

(g/cc) 1 SD 2SD

Oxidized 57 2.52 0.22 0.44

Transition 97 2.59 0.20 0.40

Unoxidized 191 2.64 0.18 0.36

Total 345




Figure 86 – (Top) Average SG values for different rock-types at Kay Tanda – Pulang Lupa, (Centre) average

SG values based on alteration style, and (Bottom) average SG values of oxidized, transitional and unoxidized

rock.




Table 23 – Spatial spread of samples collected for SG measurement at Kay Tanda and Pulang Lupa.

Figure 87 – Flowchart of method used by McPhar for specific gravity determinations.




16. DATA VERIFICATION

16.1 Assay Database Validation

Assays from over 5% of drill-holes (8 RC holes and 2 diamond holes) in the MRL assay database

supplied to Ravensgate Minerals Industry Consultants for resource calculations, were verified by the

principal Author against the original assay results reported by the McPhar Laboratory on their

Analytical Results data sheets. The holes checked were KTRC-01, 20, 41, 61, 81, 101, PLRC-01, 38

and KTDH-04, 10. This verification process resulted in a 100% positive verification of results in the

assay database of MRL that was supplied to Ravensgate Minerals Industry Consultants.

16.2 McPhar Qa/Qc Duplicate Validation

The MRL Qa/Qc assay database for pulp duplicates, for coarse reject duplicates of core and RC

samples, and for field duplicates of core and RC samples were verified against the original McPhar

Analytical Results sheets. All duplicate assay data (100% of the duplicate assays) were verified in this

procedure for all data-sets except for the field duplicate core repeats where 94% of the duplicate data

were verified. The results of this verification process resulted in just two minor key-punching errors

which were corrected.

16.3 Validation of Downhole Survey Data

All camera survey disks that were generated during the down-hole survey of 21 diamond drill-holes

(109 survey disks) by the Eastman single-shot survey camera were reviewed. The dip and azimuth of

each survey disk was checked by the author and several minor changes were made to the downhole

suvey database following this validation of the downhole survey disks. This data validation occurred

prior to database transfer to Ravensgate.

16.4 Validation of Cross-section Lithology from Database

The lithology in 9 drillholes as portrayed on cross-sections provided to Ravensgate, that represent over

5% of the 173 holes drilled by MRL (PLDH-02, PL-04, 26, KTRC-06, 19, 51, 94 and KTDH-04, 17;

see Appendix 1), were validated with the lithology database that was also supplied to Ravensgate. Only

1 cross-sectional plotting error was encountered out of 79 plotted lithological intervals that were

checked from the database.

16.5 Independent Surface Sampling

The author collected a total of six (6) rock samples from the surface of the Kay Tanda and Pulang Lupa

prospects as an independent check on the presence of gold mineralisation on the surface in the prospect

areas. Samples 1, 5 and 6 were collected from the surface of the Kay Tanda prospect whilst samples 2,

3 and 4 were collected from the surface of the Pulang Lupa prospect. Photographs of these samples

collected by the author are shown in Appendix 12 together with a map of the location of the samples in

the field. The samples were delivered to the McPhar Laboratory by the independent expert and

submitted for analysis. Table 24 lists analytical results that were obtained by McPhar on these samples.

The results indicate the presence of Au mineralisation at surface at both Pulang Lupa and at Kay

Tanda, the best result coming from a silicified hydrothermal breccia with evidence of hydro-fracturing

which the author sampled from along an access road cutting on the Pulang Lupa prospect.




Table 24 – Independent samples collected by the author from the surface of Kay Tanda and Pulang Lupa.

Field Sample UTM UTM Au Ag Cu Pb Zn As Mo

Code Code Northing Easting

Sample 1 - KT 10518 1506822.07 316707.8 0.213 0.5 0.0042 0.0121 0.0103 29 7

Sample 2 - PL 10519 1506813.47 316096.32 0.235 0.5 0.0025 0.0108 0.0397 27 <5

Sample 3 - PL 10520 1507019.58 316080.49 6.378 95.9 0.0098 0.0700 0.0054 103 19

Sample 4 - PL 10521 1507031.55 316020.52 0.218 1.3 0.0051 0.0118 0.0016 38 <5

Sample 5 - KT 10522 1507054.77 316606.33 0.093 <0.5 <0.0005 0.0018 0.0011 45 6

Sample 6 -KT 10523 1507097.37 316681.24 0.166 <0.5 <0.0005 0.0019 0.0008 28 <5

16.6 Independent Sampling of Drillcore and RC Samples

The author independently collected five (5) samples of drill core and five (5) samples of RC chips from

the MRL sample storage facility at the Lobo office as an independent check on the prior analytical

results generated by MRL. Samples 1-5 (10508 to 10512) were collected from quartered diamond

drillcore (3 samples from Kay Tanda and 2 from Pulang Lupa) whilst samples 6-10 (10513 to 10517)

were collected from bags of RC chips (3 samples from Kay Tanda and 2 samples from Pulang Lupa).

The samples were delivered to the McPhar Laboratory in Manila by the Author for independent

analysis. The results generated by sampling conducted by the indepent expert (Table 25) are in broad

agreement with the results generated by MRL in their initial round of sampling and assay. Nine of the

ten samples yielded reasonable reproduction of assays, with only one sample assaying more than an

order of magnitude higher in the round of sampling conducted by the author (i.e. sample 10511). The

samples were submitted to the McPhar Laboratory with different sample numbers to those used for the

original asays by MRL, so no connection with prior results could be made by the laboratory.

Table 25 – Independent core and RC samples collected by the author at Kay Tanda and Pulang Lupa.

McPhar Hole From To MRL BR BR BR BR BR BR BR

Stub # Au Au Ag Cu Pb Zn As Mo

1 10508 DDH * KTDH-20 61 62 0.90 1.954 0.7 0.0057 0.0034 0.0475 19 <5

2 10509 DDH * PLDH-1 30 31 59.61 64.845 1448.5 0.0243 0.2516 0.0126 50 8

3 10510 DDH * KTDH-23 154 156 3.61 3.615 1.4 0.0048 0.0613 0.22 3 8

4 10511 DDH * PLDH-1 49 50 0.43 8.803 6.4 0.0317 0.9188 1.0220 5 <5

5 10512 DDH * KTDH-10 198 199 0.34 0.126 0.5 0.0031 0.0455 0.0221 6 <5

6 10513 RC PLRC-30 18 20 0.40 0.437 2.9 0.0165 0.059 0.013 84 5

7 10514 RC PLRC-34 16 18 0.64 0.681 5 <0.0005 0.001 0.0005 3 <5

8 10515 RC KTRC-80 86 88 0.85 1.287 0.5 0.053 0.0469 0.2026 3 <5

9 10516 RC KTRC-4 133 135 70.97 40.716 5.5 0.6346 0.9409 1.8360 13 <5

10 10517 RC KTRC-99 54 56 0.30 0.427 0.6 0.0067 0.003 0.0489 23 <5

Samples 1, 2 and 4 (1/4 PQ), Samples 3 and 5 (1/4 HQ). BR- Collected by B.Rohrlach.




16.7 Independent Assessment of Specific Gravity Determinations

The McPhar Laboratory conducted 345 specific gravity determinations for MRL (see section 15.7).

The author independently submitted a series of seven (7) drillcores to the McPhar Laboratory for

estimation of the specific gravity. Prior to submission of the cores, the author crudely estimated the

specific gravity of the samples by measuring the volume of each piece of core (by multiplying the

average cross-sectional area by the length) and then weighing the core on a set of balance scales. This

method yields an approximate estimate of the specific gravity which should yield a linear correlation

with the specific gravity values generated by the laboratory. Table 26 shows the comparative results.

Whilst the authors independent check method for SG determination is less accurate than the method

used by McPhar, and the author over-estimated the SG values slightly compared to McPhar, the

comparative results nevertheless show reasonable correlation within the constraints of the method used.

Table 26 – Independent estimation of SG on seven core samples.

Sample Crude Estimate by

Author

Measurement by

McPhar

(g/cc) (g/cc)

10501 Porphyritic Volcanic Dacite 2.55 2.43

10502 Porphyritic Volcanic Dacite (argillized) 2.56 2.19

10503 Intrusive Diorite 2.42 2.34

10504 Intrusive Dacite Porphyry 2.70 2.62

10505 Porphyritic Volcanic Andesite 2.42 2.30

10506 Limestone 2.77 2.67

10507 Andesitic Flow 2.55 2.30

16.8 Validation of Specific Gravity Data From McPhar Database

The original McPhar Analytical Results Sheets for the 345 core samples that were submitted by MRL

for specific gravity determinations were sighted by the author. All 345 specific gravity values on the

primary laboratory results sheets were validated with the data in the digital database that was provided

for resource calculations. No errors were identified.

16.9 Validation of Procedures Employed for Calculation of Sample Recoveries

The principal Author reviewed the procedures that were set-up in an Exel spreadsheet for calculating

sample recovery data for the RC samples. The Author considers the methodology appropriate, and the

results to be sufficiently accurate as a reliable indicator of the RC sample recoveries.

16.10 Validate Drill Collar Positions Using GPS

The author used a Magellan GPS unit to independently locate the position of five (5) drillhole collars

on the Kay Tanda and Pulang Lupa drill grids. The holes chosen for independent verification of

location were from the periphery of the area drilled, and are compared with the plotted location of all

MRL drillholes and with the boundary of the Archangel MPSA as defined by the Mines and




Geociences Bureau (Figure 88). The independent checking has indicated that the holes drilled by MRL

are located within the confines of the approved MPSA 177-02-IV.

Table 27 - Co-ordinates of 5 drill-holes independently acquired by GPS.

Drillhole UTM UTM RL

Northing Easting

KTRC-74 1506683 51316709 301m

KTRC-87 1507054 51316982 244m

KTRC-100 1507334 51316596 294m

PLRC-06 1506705 51316095 285m

PLRC-29 1507024 51315946 256m

Figure 88 – Location of 5 drill collars at Kay Tanda and Pulang Lupa checked independently by the author

using a Magellan GPS. The 5 holes selected to check the positon of the drilling at Kay Tanda and Pulang Lupa

were chosen from around the periphery of the drill grid to ensure that the area of drilling was contained within the

Archangel MPSA 177-02-IV. The green circles are the MRL survey co-ordinates of the 5 holes of interest. The

red circles are the position defined by GPS by the author. Both sets of points lie within the Archangel MPSA 177-

02-IV as defined by corner co-ordinates provided by the Mines and Geosciences Bureau, the issueing authority

for the MPSA. This GPS check serves to verify the actual location of the drilling on the Kay Tanda and Pulang

Lupa prospects relative to the approved MPSA boundary.




16.11 Validation Surface Topography Using GPS

The only method of independently validating the surface topography in the region was by comparing

the GPS elevation coordinates from five (5) drill collars (see Section 16.10) with the surveyed drill

collar RLs. The comparisons shown in Table 28 are in good agreement as verified by GPS.

Table 28 – Surveyed Collar elevations and elevations defined by Magellan GPS.

Drilhole GPS Northing

(UTM)

GPS Easting

(UTM)

Surveyed

Elevation

GPS

Elevation

KTRC-74 1506683 51316709 301m 298.705

KTRC-87 1507054 51316982 244m 241.701

KTRC-100 1507334 51316596 294m 293.372

PLRC-06 1506705 51316095 285m 283.863

PLRC-29 1507024 51315946 256m 259.360

16.12 Sighting of Relevant Documents Relating to Tenure

The principal Author visited the central office of the Mines and Geoscience Bureau in Manila in

August 2007 and held discussions with Mr Larry Heradez (section chief of the MPSA audits section) in

order to independently verify the validy of MRL’s title over the Archangel MPSA 177-02-IVand the

nearby Lobo MPSA 176-2002-IV.

16.12.1 MPSA 177-02-IV

A 27th July 2007 communication was sighted from the MGB to Mr Manny Arteficio informing him of

the granting of renewal (2nd renewal) of the 2-year exploration period under MPSA 177-02-IV to take

effect on the 27th July 2007. This renewal will represent years 5 and 6 of an 8-year exploration period

that is allowed under MPSA regulations prior to the requirement for a mineable resource to be defined

and preparations underway for project development. The communication was signed by Horacio

Ramos, Director of the MGB. The note also stated a) an affirmation that MRL Gold had fully

implemented their exploration work program, b) that the company had intensified its information,

education and community programs, their environmental mitigating program and social development

programs. The valid status of MPSA 177-02-IV was also confirmed by Mr Larry Heradez of the MGB.

16.12.2 MPSA 176-2002-IV

An “Application Checklist for Renewal of Exploration Period” for MPSA 176-2002-IV was sighted at

the MGB Central Office. This document stated the following details:

a) MPSA: 176-2002-IVB

b) MPSA Contractor: Edgerton Gold Philippines Inc.

c) Contract area: 1,163.6195 Ha.

d) Location: Lobo, Batangas.

e) Date granted: 21st November 2002.

f) Date of Filing for Application of Renewal: 24th April 2007.




During the visit, the principal Author sighted a memorandum from the Chief of the Mining Tenements

Management Division to the Chief of the Mining, Environment and Safety Division which was a cover

note for a copy of a proposed environmental work program for the application of Edgerton Gold

Philippines Inc. for a 2nd renewal of the exploration period for MPSA 176-02-IV (signed by Leo L.

Jasareno, 2nd May, 2007). The current status of MPSA 176-2002-IV is that the Environmental Work

Program proposed by MRL is currently being reviewed by the Environmental Division of the MGB

Central Office prior to renewal of the exploration period on this MPSA.

16.12.3 Other Exploration Permits

The principal Author also held discussions at the MGB Central Office with Mr Levi Teodoro, officer n

charge of applications for mineral exploration permits (EP’s). The following documents were sighted in

regard to several of the EP applications of Egerton Gold Philippines Inc:

a) A letter was sighted from the Secretary of the DENR to the Director of the MGB giving

clearance to issue Exploration Permits for the Calo application (EPA-IVA-081) and for the

Pica application (EPA-IVA-084).

b) A letter was sighted from the Director of the MGB to the Secretary of the DENR requesting

clearance to issue an Exploration Permit for the Philex EPA IVA-095.

c) A letter was sighted from the Director of the MGB to the Secretary of the DENR requesting

clearance to issue an Exploration Permit for the EL Paso EPA IVA-096 dated 23rd February

2007.

16.13 Sighting of Drill Collars, Drill Core and RC Samples

The principal Author personally inspected the surface environment of both the Kay Tanda and Pulang

Lupa prospects on several occasions during the course of consulting to MRL Gold Philippines Inc., the

most recent visit was on the 13th August 2007. During the course of these inspections a subset of the

hole collars were inspected. A total of 28 drill-hole collars from Kay Tanda and 10 drill-hole collars

from Pulang Lupa (38 hole collars in total) were inspected and verified on the ground (Figure 45).

The drill-core boxes from all 24 Kay Tanda diamond drill-holes and the 2 Pulang Lupa diamond drill-

holes were sited in MRL’s core storage facility in Lobo (Appendix 3), and the principal Author

observed drillcore from diamond holes KTDH-01 and KTDH-04 being drilled by United Philippines

Drilling during two separate site visits.

The principal Author also observed numerous duplicate samples from the RC program in the sample

storage yard of the Lobo office, however the holes observed were not tabulated as the samples were in

the process of being transfered to a new and expanded sample storage facility (Appendix 3).




16.14 Validation of Exploration Activities

In addition to observing the RC and diamond drilling programs in progress at Kay Tanda and Pula

Lupa on several occasions, the principal Author was also able to validate the completion of several

exploration activities on the Archangel property. The principal Author was previously employed by

Western Mining Corporation (WMC; 1988-2001), and in 1988 and 1989 the Author was aware that the

Archangel project was an exploration project of WMC. The Author sighted several of the old Chase

drill-hole collars at Kay Tanda and Pulang Lupa during the course of consulting work for MRL. The

Author visited Kay Tanda in 2005 following recent completion of trenches on the surface of the Kay

Tanda prospect and observed a trench cut at North Lumbangan as well as the location of several

historical Chinese workings on the surface at Kay Tanda. The Author sighted regional samples that

were sent to AusSpec for Pima analysis, and the AusSpec report on the analysis of the Pima samples

was sent to the principal Author following his request for determination of specific spectral parameters

during Pima analysis. The Author also sighted a significant number of labeled off-cuts of petrographic

samples that were obtained from diamond drillcore samples at Kay Tanda, and that were sent to Elvi

Comsti of the Petrographic Laboratory of the Mines and Geosciences Bureau in Manila for

petrographic description. The Author observed the geophysical crew of Elliot Geophysics at the Lobo

field camp working for MRL in late 2005. The principal Author has sighted a working compilation of

field mapping sheets at the Archangel field-camp and has also sighted the original field mapping sheets

filed in the Lobo office.

17. ADJACENT PROPERTIES

The properties that surround the Archangel MPSA are all held or secured by exploration permit

applications by MRL. These properties are shown in Figure 2.

17.1 Calo Exploration Permit and Calo Prospect

The recently granted Calo exploration permit (EP-006-IV [2,493.02 Ha]; Figure 2) is centered ~10 km

northwest of the Archangel property. The property contains a usually extensive series of IP

chargeability anomalies that collectively extend ~7 km north-south and ~4 km east-west. The

anomalies are located south of Freeport McMoRan’s Taysan porphyry Cu deposit (Figure 5). The IP

anomalies are collectively known as the Calo anomaly (Figure 5) and lie within a deep fault-bound

valley that is partly filled with young volcanic rocks. These young rocks may be the time-equivalent of

the Balibago Andesite. Older hydrothermally-altered volcanics of the Talahib Volcanic Sequence

outcrop along the hills that occupy the east and west walls of the Lobo River Valley.

Abundant copper and gold mineral showings occur along the margins of the valley. On the eastern side

of the valley extensive argillic and advanced argillic alteration is associated with the SW Breccia high-

sulfidation vein system and the low-grade Pica porphyry system. Porphyry copper-gold mineralization

was discovered by MRL on the Pica prospect in 2005. Pica occurs along a range of hills on the Lobo

MPSA along the eastern margin of the Calo IP anomaly. The Pica prospect is associated with strong

advanced argillic that defines a silica cap and intermediate argillic alteration at surface. A geophysical

survey in late 2004 defined chargeability anomalies in the Pica region which extended over an area of




~1.5km by 2.5km. The Pica IP anomalies were tested by four diamond drill holes. The second drill hole

intersected 213 meters at a grade of 0.18 percent copper, 0.30 g/t gold and 1.91 g/t silver from 22 to

235 meters, associated with phyllic alteration. The Pica porphyry system is interpreted to be associated

some high-level intrusions which may lie off the eastern edge of a deep porphyry system that is being

targeted in the Calo region beneath the cover rocks in the Lobo River Valley.

On the northwestern side of the Lobo River Valley there is a cluster of narrow high-sulfidation

epithermal veins in an area of extensive alteration that is exposed along the western side of the valley.

The area is extensively covered by young Quaternary volcanics and tuff which obscure large parts of

the prospective underlying geology. However, in the northwest part of the large the Calo prospect area,

erosion has exposed windows of altered andesitic volcanics that exhibit areas of advanced argillic

alteration with copper showings, and areas of phyllic and SCC (sericite-clay-chlorite) alteration. High-

sulfidation epithermal Cu-Au-Ag mineralization is associated with quartz veins in the region and some

skarn-related mineralization has been located in these altered rocks. These features collectively suggest

proximity to a porphyry system underlying the Calo IP anomalies.

An extensive induced polarization (IP) and ground magnetic survey of 141 line kilometers was

conducted along 200-meter-spaced lines by Elliott Geophysics International Pty. Ltd of Australia.

Background chargeability values are in the range of 5-8 msecs. An area of at over 7km in length by ~

4km in width has chargeabilities of > 20 msecs and encompasses zones of greater than 50 msecs

including IP chargeability values of up to 100 msecs. The Calo anomaly links with the Pica

chargeability anomaly at hits southeast corner. The chargeability anomalies occur at the intersection of

strong regional NW-SE, and NE-SW lineaments and suggest that large concentrations of metal sulfides

lie below the younger cover volcanics.

Possible evidence that the Calo IP anomaly is caused by sulfides that are related to one or more

porphyry systems include: 1) porphyry Cu-Au mineralization identified by drilling at Pica on the

southeast margin of the Calo anomalies; 2) erosional windows of advanced argillic, phyllic and SCC

(sericite-clay-chlorite), Cu-stained massive silica boulders that are interpreted as remnants of a

porphyry system lithocap located in the southern part of Calo; 3) abundant epithermal copper and gold

showings occur along the western and eastern margins of Calo that include high-sulfidation epithermal

Cu-Au-Ag veins and skarn mineralization; 4) the occurrence of a diatreme breccia with intense clay-

silica alteration. Furthermore, in the southwest part of Calo, outcrops of young volcanic agglomerate

cover contain clasts which are cemented by supergene copper minerals and silica, and have been

mapped over an area of 100 meters by 300 meters. Two trench channel samples through this “exotic

Cu” occurrence yielded 2.62 % copper over 30 meters and 2.17 % copper over 20 meters. This exotic

copper occurrence, typical of those associated with some South American porphyry copper deposits,

implies a significant copper source may exist in the underlying rocks.

A number of deep and widely-spaced diamond holes were drilled by MRL in the Lobo River Valley at

Calo, however current interpretations suggest that the drilling didn’t penetrate deep enough to intersect

the Talahib Volcanic Sequence.




17.2 El Paso Exploration Permit and El Paso Prospect

The El Paso exploration permit (EP-009-IVA [6,314.76 Ha]; Figure 2) comprises two main non-

contiguous blocks. The main block of immediate interest lies ~10 km NNW of the Archangel MPSA.

The El Paso prospect is located 7 km north of the Lobo Project and 12 km from the Taysan porphyry

Cu-Au deposit.

The El Paso property lies immediately north of the major WNW-trending structural boundary that

separates the older batholithic terrain (San Juan Diorite) to the northeast from younger volcanic terrain

to the south. This major terrain boundary may be a favorable structural setting which served to localize

mineralizing intrusions, including those at Taysan. The area is underlain by the San Juan Diorite and

older metavolcanics, and is intruded by younger quartz diorite porphyry and andesite porphyry

intrusions. Younger Quaternary volcanic tuff cover occurs in some parts of the license. Extensive

phyllic and intermediate argillic alteration has been identified by MRL geologists in the El Paso region,

as well as local areas of potassic alteration.

Widespread copper-gold mineralization at El Paso occurs in association with young andesite porphyry

intrusions as well as with the older and eroded San Juan Diorite.

In the southwest part of the broader El Paso prospect region, copper mineralization has been known

historically and was tested with a number of shallow drill-holes by a prior explorer in the mid 1990’s.

Results from this phase of work are unknown. Subsequent reconnaissance IP surveys by MRL in the

area of the Cu showings failed to generate a substantial IP anomaly. However two large and strong

chargeability anomalies were defined at Calantas and Mulawin, located ~2 km east of the copper

showings at El Paso (Figure 5). Both the Calantas and the Mulawin IP anomalies are about 2km by

1km in extent, with chargeability values ranging from 20 msecs to over 50 msec against a background

of 4-8 msecs. The area of Cu showings at surface in the El Paso region may be the distal expression of

a porphyry Cu-Au system at Calantas-Mulawin.

A thin cover of volcanic ash obscures much of the area, but scattered outcrops indicate that the geology

consists of stocks of younger, fine-grained quartz diorite and andesite porphyry that have intruded the

old metavolcanic sequence in the region. Petrology of surface samples reveals that alteration comprises

of quartz-sericite-chlorite and sericite-clay-chlorite. These alteration assemblages are common to

Philippine porphyry systems and are usually transitional to the core potassic zone at depth. The

petrology also confirms the presence of quartz veining with magnetite and the copper minerals

chalcopyrite and bornite.

A channel sample from the metavolcanics in the region yielded 0.24 % Cu over 15 meters. This

suggests that the strong chargeability anomaly below is of considerable potential. The principal Author

of this report has observed fine chalcopyrite and molybdenite in some surface samples from over the

area of IP anomalism on a previous site visit to the region. High molybdenum values (806 ppm) over a

ten meter channel sample at Calantas are associated with an andesite porphyry stock and also suggest a

porphyry source.

Drill testing is planned in the El Paso area for 2008 following additional groundwork.




17.3 Talahib Exploration Permit Application and Talahib Prospect

The Talahib prospect is located ~8 km west of the Lobo Project and ~11 km southwest of the Taysan

porphyry Cu-Au deposit. The area is subject to an exploration permit application by MRL EPA-IVA-

088 (Figure 2). Reconnaissance work in the region has located significant copper and gold

mineralization at Talahib. The prospect area is underlain by andesitic volcanics that are intruded by a

series of phyllic and SCC-altered diorite and microdiorite intrusions, and are locally overlain by

younger Quaternary tuff. Stream sediment sampling at Talahib yielded strong anomalies including

650ppm Cu and 468ppb Au.

Reconnaissance rock-channel sampling of heavily mineralized hydrothermal breccia yielded assays of

3.33 % Cu and 0.10 g/t Au over 20 meters and included 6.55 % Cu and 0.16 g/t Au over ten meters.

About 200 meters south of this area of sampling, a sample from an outcrop of SCC-phyllic altered

diorite assayed 0.74 % Cu and 0.15 g/t Au over 30 meters. Another channel sample from a phyllic-

altered diorite outcrop located ~500 meters north of the hydrothermal breccia assayed 1.04 % Cu and

0.09 g/t Au over 20 meters. Detailed ground geological mapping and induced polarization surveys are

planned for 2008, followed by drilling, subject to approval of an exploration permit.

17.4 Lobo MPSA 176-02-IV and the SW Breccia Mineral Resource

Past work by MRL has outlined approximately 5-7 km of integrated strike length of northeast-trending

epithermal vein-breccia trends on the Lobo Project. Mineralization along these epithermal trends

occurs as both low-sulfidation gold and high-sulfidation copper-silver. Two highly mineralized shoots

along these vein systems are the SW Breccia and the old Lobo mine. MRL drill delineated a near-

surface gold resource at the SW Breccia prospect and at the old Lobo Mine where copper was mined

during the 1960’s. High gold-copper-silver values occur at surface in a number of areas along these

trends. There are likely to be other mineraliz3ed shoots in the region that are not currently exposed at

surface.

At SW Breccia which lies along the Camo Trend, a National Instrument 43-101 compliant resource

estimate was prepared during 2004, based on 25 shallow drill holes completed by Mindoro using a

man-portable diamond drill rig. An indicated resource was established to a depth of 130 meters, and

comprised 270,000 tonnes at a grade of 6.49 g/t gold, containing 56,380 ounces of gold. Additional

inferred resources are 61,000 tonnes at a grade of 5.35 g/t gold, containing 10,540 ounces of gold. The

mineralization is believed to be open at depth and along strike to the southwest. At a later date, MRL

may further extend the resource at SW Breccia.




18. MINERAL PROCESSING & METALLURGICAL TESTING .

18.1 Metallurgical Test Work

MRL have undertaken several rounds of metallurgical testing of mineralization from Kay Tanda and

Pulang Lupa to test the heap leach characteristics of the oxide, transition and sulfide mineralization.

18.1.1 2004 Metallurgical Test Work

Preliminary bottle roll metallurgical test work was conducted and reported on 14th January 2004. The

initial testing was conducted on historic reverse circulation percussion samples from the Chase drilling

program. The results of this early metallurgical testing were largely positive.


A second round of more extensive testing was conducted in 2005 on a 245 kilogram bulk sample of

oxidized material that was excavated from a small trench at Pulang Lupa. The result of this follow-up

work were reported in October 2005 (Rayner and Eslake, 2005) and again revealed high gold

recoveries and rapid recovery of gold. The Pulang Lupa sample was of earthy oxide mineralization that

was derived from the surface trench. The sample was subjected to agitation leaching and heap leach

test work by Metcon Laboratories. This sample assayed 3.58 g/t Au and 51g/t Ag (head grade). It

responded well to leaching. It exhibited leaching of 94% of gold (37% of Ag) in a CIL test following

grinding at 80% passing 75 microns, and agitation leaching.

Column leach tests were then conducted on two grind size fractions, -12.7mm and -50mm.

Approximately 20 kilograms of material was leached in a 100mm diameter and 2m tall column for the -

12.7mm sample. Approximately 183 kilograms of material was leached in a 300mm diameter and 2m

tall column for the -50mm sample.

Dissolution of 87.1% of the gold occurred after 7 days by heap leaching at a 12.7mm crush size, with a

maximum dissolution of 88.1% after 30 days. Ag dissolution was very low at 6.8% after 30 days.

Dissolution of 81.7% of the gold occurred at a 50mm crush size after 85 days. Metcon considered the

results to be very encouraging for Au for the 12.7mm crush size and not much less than the maximum

94% recovery obtained in the CIL test. The overall gold recovery and the rate of gold dissolution at the

finer crush size were considered exceptionally high for heap leaching. There was a slower leach rate

and reduced gold dissolution from the coarser crush size as expected, however the percentage gold

dissolution was still well above average for heap leaching at this crush size (Rayner and Eslake, 2005).

It appears that cement, instead of lime, could be used as the agglomerating medium. Silver recoveries

are characteristically low in gold-silver heap leach operations.

Metcon indicated that the physical nature of the Pulang Lupa sample used in the second batch of testing

was not typical of the majority of the Kay Tanda oxide mineralization and that its gold and silver grade

was much higher than the average grade expected from the Kay Tanda and Pulang Lupa deposits.





Due to the potential non-representative nature of the 2005 metallurgical test work on surface samples

from Pulang Lupa, two composite samples were consequently made up from drill core in 2006, one

representing the oxide mineralization and the other representing transitional mineralization. These were

collected to further evaluate the heap leaching characteristics of near surface oxide mineralization and

deeper transitional mineralization which contained mixtures of oxidized and sulfide-bearing

mineralization. Samples were collected from large-diameter PQ core and submitted to Metcon

Laboratories in Australia. The metallurgical testing program was designed and supervised by an

independent metallurgical consultant, Peter J. Lewis and Associates of Australia. The test material

comprised of competent, but highly fractured and hard rock (Plates 56 and 57). Table 29 lists the

samples which were combined to generate the composite oxide and transitional test samples.

Plate 56 – Example of oxide mineralization that formed part of the oxide composite.

Plate 57 – Example of transitional mineralization that formed part of the transitional composite.




Table 29 - Composite samples.

OXIDE ZONE COMPOSITE

Sample Hole From To Metres Received Assay

Number Number (m) (m) weight (kg) (g/t Au)

1 0 - A KTDH 01 6.0 23.4 17.4 69.6 1.73

1 0 - 1 to 4 KTDH 02 6.0 32.0 26.0 112.0 0.45

2 0 - 1 KTDH 02 33.0 38.0 5.0 14.4 0.51

Total 48.4 196.0 0.91

TRANSITION ZONE COMPOSITE

Sample Hole From To Metres Received Assay

Number Number (m) (m) weight (kg) (g/t Au)

2T - A to D KTDH 01 23.4 43.7 20.3 97.2 1.14

2T - 1 KTDH 01 43.7 44.7 1.0 5.5 0.27

2T - 2A & 2B KTDH 01 44.7 51.7 7.0 45.8 0.67

2T - 3A & 3B KTDH 01 51.7 63.0 11.3 57.4 0.88

2T - 4A & 4B KTDH 01 63.0 70.0 7.0 40.2 0.19

2T -5 KTDH 01 70.0 72.0 2.0 11.6 2.10

Total 48.6 257.7 0.88

Three metallurgical tests were conducted on each of the two composite samples:

1) Agitation leaching (bottle roll) at a grind size of 80% passing 75 m.

2) Heap leaching at a crush size of minus 12.7mm

3) Heap leaching at a crush size of minus 50mm

The head grade of both samples was determined by several methods as listed in Table 29. The Au

assays determined by the SGS Townsville laboratory for the two composites were 1.16 g/t Au for the

oxide composite and 1.05 g/t Au for the transitional composite. These Au grades are more in line with

the tenor of the higher grade cores of the Kay Tanda and Pulang Lupa deposits.

Table 30 illustrates that when the assayed gold head grades of the two composites are compared with

the expected grades based on the exploration assays and the calculated head grades from the three tests

carried out, there is good agreement between the assayed and calculated head grades. This indicates

that the gold grain size is very fine and no significant coarse gold is present in the samples tested

(Rayner and Eslake, 2007).

Table 30 – Gold assays (g/t) of composite samples for metallurgical testing

Oxide Transition

Expected grades from exploration assays 0.91 0.88

Assayed head grades 1.16 1.05

Calculated from leach test at P80 75µm 1.14 1.05

Calculated from -12.7mm heap leach test 1.14 1.06

Calculated from -50mm heap leach test 1.09 0.95




Agitation Leaching

Carbon-in-leach tests at a grind size of P80 (80% passing) 75µm were included in the test program to

provide an indication of the maximum amount of gold that might be recovered if the ore were finely

ground and treated in a conventional carbon-in-leach plant. This was done to provide a basis for

comparing the gold recoveries obtained by heap leaching.

Agitation leach tests were carried out wherein a 1kg portion of each blended composite was ground to

P80 75µm and then leached for 48 hours at 40% solids w/w, at pH 10 with hydrated lime, and with

0.1% initial cyanide concentration. The cyanide concentration was maintained at >0.05% NaCN for the

first 32 hours. The tests were carried out under CIL conditions.

The oxide composite sample comprised of competent quartz-rich drill core that showed no signs of the

friable, earthy nature of the previous trench sample from Pulang Lupa. Despite this more coherent

character, the gold dissolution from the oxide composite was 93.4%, which was virtually the same as

that obtained from the previous near surface oxide sample from Pulang Lupa. The gold extraction from

the transition composite was also high at 88.6%. Silver dissolutions were also high at 83.7% and 87%

from the oxide and transition composites respectively, although the low silver head grades suggest that

there is not much economic benefit to be obtained from the silver (Rayner and Eslake, 2007).

The initial rate of gold dissolution from the oxide composite was high, with 86% of the gold extracted

in 8 hours. It then progressed at a slower rate to 93.4% after 48 hours. The gold dissolution rate from

transition composite was a little slower reaching 82% in 8 hours and then slowly increasing to 88.6%

after 48 hours (Rayner and Eslake, 2007).

These recoveries are high, especially for the sulfide-containing transitional material. Results to date

suggest that the gold and silver occurs in cracks and fissures, and is not bound with sulfides, hence Au

and Ag appears to be very accessible to cyanide solutions.

Heap (Column) Leaching (-12.7mm crush size).

A minus 12.7mm crush size was used in the first simulated heap leach test since it represented the

finest crush size at which heap leaching is envisaged. The minus 12.7mm test was conducted on just

less than 20 kilograms of sample (100mm diameter by 2-metre-high leach column).

The gold dissolution rate curves in Figure 89 indicate that leaching from the oxide composite was

slightly faster than that from the transition composite. In both cases the majority of the gold was

extracted over the first 5 days (Rayner and Eslake, 2007).

82.4% of the gold was extracted from the oxide composite and 78.3% from the transitional composite

by the end of the run. These gold extractions are only approximately 10% lower than the “maximum”

extractions achieved in the agitation leach tests, which indicates that both ore types are highly

amenable to heap leaching. Silver recoveries were 32% and 42% for oxide and transitional

mineralization respectively, which is good for silver. Both composites are, therefore, highly amenable

to heap leaching.




OXIDE - Au Dissolution Rate

0

10

20

30

40

50

60

70

80

90

100

0 5 10 15 20 25 30

Days

% D

isso

luti

on

Transition - Au Dissolution Rate

0

10

20

30

40

50

60

70

80

90

100

0 5 10 15 20 25 30

Days

% D

isso

luti

on

Figure 89 – Au dissolutions for heap leach tests at a -12.7mm grind size for oxide and transitional mineralization.

Other positive factors arising from both tests were the:

Unhindered percolation properties

Low solution hold up

Minimal slump

Reasonable cyanide consumptions

Rapid initial gold dissolutions

Since high gold extractions were obtained at the -12.7mm crush size, a further heap leach test was

completed on both composites at a coarser crush size of -50mm (see below).

Also, since the sample of transitional mineralization contained a high proportion of fresh sulfide-

mineralization and still leached well, a test is currently being conducted on deeper, entirely sulfide-

related mineralization to ascertain its heap leach characteristics. Results are unavailable at the time of

writing.

Heap (Column) Leaching (-50mm crush size).

The minus 50mm test was conducted on 150 kilograms of sample using a 300 mm diameter leach

column 2-meters in height.

The gold extractions were very close to those achieved at the finer crush size, although the rate curves

in Figure 90 suggest that with time more gold could be recovered, particularly from the transition

composite. Thus similar gold extractions have been obtained for both mineralization types, and at both

crush sizes. The only difference is that a longer leach time is required at the coarser crush size.




OXIDE - Au Dissolution Rate

0

10

20

30

40

50

60

70

80

90

100

0 20 40 60 80

Days

% D

isso

luti

on

TRANSITION - Au Dissolution Rate

0

10

20

30

40

50

60

70

80

90

100

0 20 40 60 80

Days

% D

isso

luti

on

Figure 90 – Au dissolutions for heap leach tests at a -50mm grind size for oxide and transitional mineralization.

19. MINERAL RESOURCE & MINERAL RESERVE ESTIMATES

The mineral resource calculations undertaken by Mr Dean Fredericksen for and on behalf of

Ravensgate Minerals Industry Consultants are documented below in the inserted report titled “Mineral

Resource Estimate on the Kay Tanda and Pulang Lupa Prospects Located in the Batangas Province of

Southern Luzon, Philippines”.

The entire report by Ravensgate, including Table of Contents, List of Figures, List of Tables and List of

Appendices, are inserted below and relabelled as pages 202 to 265 as an insert into Section 19 of this

N.I. 43-101 report.

203

MINERAL RESOURCE ESTIMATE

ON THE KAY TANDA AND PULANG LUPA PROJECTS

LOCATED IN THE BATANGAS PROVINCE OF


for

MINDORO RESOURCES LTD

Effective date: 20 December 2007

Corvidae Pty Ltd as Trustee For Ravensgate Unit Trust

Trading as Ravensgate 49 Ord Street

West Perth, Western Australia 6005 PO Box 1923, West Perth WA 6872

Tel +61 08 9226 3606 Fax +61 08 9226 3607

email: [email protected] web : http://www.ravensgate.com.au

ABN: 92 492 598 860

204

KAY TANDA AND PULANG LUPA MINERAL RESOURCE ESTIMATE

Prepared by RAVENSGATE on behalf of:

Mindoro Resources Ltd

Author: Dean Fredericksen Principal Consultant MSc Hons, (MAusIMM)

Reviewer: Stephen Hyland Principal Consultant-Reviewer BSc, MAusIMM, CIMM, GAA

Date: 20 December 2007.

Copies: Mindoro Resources Ltd (2)

Ravensgate (1)

_______________________ Dean Fredericksen For and on behalf of: RAVENSGATE

This document has been prepared for the exclusive use of Mindoro Resources Ltd and the information contained within it is based on instructions, information and data supplied by them. No warranty or guarantee, whether expressed or implied, is made by Ravensgate with respect to the completeness or accuracy of this document and no party, other than the client, is authorised to or should place any reliance whatsoever on the whole or any part or parts of the document. Ravensgate does not undertake or accept any responsibility or liability in any way whatsoever to any person or entity in respect of the whole or any part or parts of this document, or any errors in or omissions from it, whether arising from negligence or any other basis in law whatsoever.

205

2

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY AND RECOMENDATIONS ...............................................................209

2. INTRODUCTION.....................................................................................................210

2.1 Qualifications, Experience and Independence......................................................210

2.2 Disclosure ...............................................................................................211

2.3 Scope of Works .........................................................................................212

2.4 Project Location .......................................................................................212

2.5 Company Supplied Data...............................................................................213

2.6 Data Validation.........................................................................................214

2.7 Grids .....................................................................................................214

2.8 Topography .............................................................................................215

3. GEOLOGICAL INTERPRETATION AND RESOURCE MODEL..................................................215

3.1 Geological Setting and Mineralisation ..............................................................215

3.1.1 Stratigraphy...............................................................................215

3.1.2 Mineralisation ............................................................................216

3.2 Modelling Approach....................................................................................218

3.3 Definition and Construction of Mineralisation Domains ..........................................219

3.3.1 Gold, Veining and Fracturing ...........................................................219

3.3.2 Choosing Au thresholds for domain construction....................................221

3.3.3 Indicator Kriging of thresholds .........................................................223

3.3.4 Estimation Domain Wireframes ........................................................225

3.4 Oxidation Domains and Bulk Density Modelling....................................................227

3.5 Drillhole Data Set, Coding and Compositing .......................................................228

3.5.1 Compositing and Coding.................................................................228

3.5.2 Drillhole Coding ..........................................................................229

3.6 Domain Statistics and Grade Top Cuts ..............................................................229

3.7 Variography and Neighbourhood Analysis ..........................................................233

3.7.1 Down Hole variogram models...........................................................233

3.7.2 Directional (“Between Hole”) Variograms............................................236

3.8 Block Model Estimation ...............................................................................238

3.8.1 Model Extents.............................................................................238

3.8.2 Model Coding..............................................................................239

3.8.3 Estimation Parameters ..................................................................239

3.9 Validation ...............................................................................................241

3.10 Mineral Resource Classification......................................................................242

3.11 Mineral Resource Reporting ..........................................................................244

4. CONCLUSIONS AND RECOMMENDATIONS ....................................................................248

5. REFERENCES......................................................................................................249

6. GLOSSARY.........................................................................................................250

206

LIST OF TABLES

Table 1 Model drill holes and stratigraphy items and codes .....................................................216

Table 2 Indicator Block Model Extents and Dimensions ...........................................................224

Table 3 MEDS Rotation Angles, Indicator Variogram Models and Ranges (metres) for Estimation of the Indicator Models...............................................................................................224

Table 4 Indicator Kriging Estimation Parameters by Area ........................................................225

Table 5 Estimation Domain Codes ....................................................................................227

Table 6 Oxidation Domain codes......................................................................................228

Table 7 Bulk Density data for Pulang Lupa and Kay Tanda lithologies and Oxidation Categories ..........228

Table 8 Raw Assay Sample Interval Statistics.......................................................................229

Table 9 Estimation Domain Statistics Calculated on Composite Intervals......................................233

Table 10 MEDS Rotation Angles, Variogram Models and Ranges for Estimation Domain ......................237

Table 11 Archangel Block Model Extents and Cell Sizes ...........................................................238

Table 12 Block Model Items and Descriptions for KTLC15.dat ....................................................238

Table 13 Kriging Estimation Parameters by Estimation Domain ..................................................240

Table 14 Model Domain Statistics Weighted by % Ore in the Block and Declustered Cell Statistics. .......242

Table 15 Mineral Resource Estimate Summary for the Pulang Lupa and Kay Tanda deposits (unrounded)245

Table 16 Indicated Resource Summary at a Range of cut-off grades for Pulang Lupa Deposit...............245

Table 17 Inferred Resource Summary at a Range of Cut-off Grades for Pulang Lupa Deposit ...............246

Table 18 Inferred Resource Summary at a Range of Cut-off Grades for Kay Tanda Deposit .................247

207

LIST OF FIGURES

Figure 1 Plan of the Archangel Project area identifying the Pulang Lupa and Kay Tanda prospect areas. The plan in local grid coordinates shows the location of all drill holes and topography contours.....213

Figure 2 Plan showing the location of all drill intercepts with Zn% grades greater than 0.5%. The intercepts are coloured by gold grades as per the legend shown on the plan.............................217

Figure 3 Cross section 9900 mN showing the location of the replacement style mineralisation within the Calatagan Formation. The cross section shows all drillholes and the interpreted boundary between the Calatagan formation and Talahib Volcanics. Drill holes are annotated with Ag grades (left of trace) and Au grades (right of drill hole trace) ................................................................218

Figure 4 Example Scatter plot of Au grades versus logged total vein percent for the mineralised Pulang Lupa area. The correlation coefficient for this data set is 0.074. ..........................................220

Figure 5 Cross section 9850 mN showing logged vein percentage as solid traces as per the legend and gold grades. The resulting interpreted grade domains are shown as Green outlines. .........................220

Figure 6 Log Probability plot of Pulang Lupa 2.0m composites. The chosen threshold of mineralisation or estimation domain was at a cut-off of 0.15g/t as shown.....................................................222

Figure 7 Log Probability plot of Kay Tanda 2.0m composites. The chosen threshold of mineralisation or estimation domain was at a cut-off of 0.25g/t as shown.....................................................223

Figure 8 Cross section at 9400 mN through the Pulang Lupa area showing the kriged 0.15 g/t Au indicator wireframe at 50% probability (Orange) and the resulting interpreted estimation wireframe (Green). The pale grey line is the topographic surface and the drill holes Au g/t grades are displayed as per the cut off legend. .................................................................................................226

Figure 9 Cross section at 9750 mN through the Kay Tanda deposit showing the kriged 0.25 g/t Au indicator wireframe at 50% probability (Orange) and the resulting interpreted estimation wireframe (Green). The pale grey line is the topographic surface and the drill holes Au g/t grades are displayed as per the cut off legend. .........................................................................................227

Figure 10 Pulang Lupa Au – Log Probability Plot ....................................................................231

Figure 11 Kay Tanda Au – Log Probability Plot ......................................................................231

Figure 12 Pulang Lupa Ag – Log Probability plot ....................................................................232

Figure 13 Kay Tanda Ag – Log Probability Plot ......................................................................232

Figure 14 Downhole Experimental Semi-Variogram Au on 2.0m composites for Pulang Lupa................234

Figure 15 Downhole Experimental Semi-Variogram Au on 2.0m composites for Kay Tanda ..................234

Figure 16 Down-hole Experimental Semi-Variogram Ag on 2.0m composites for Pulang Lupa ...............235

Figure 17 Down-hole Experimental Semi-Variogram Ag on 2.0m composites for Kay Tanda .................236

Figure 18 Contour of Au variogram models for Kay Tanda. .......................................................237

Figure 19 An example of the output from the debug routine in MineSight that enables the analysis of the optimum Kriging parameters. This search ellipse example is the one applied to Kay Tanda Au estimate. The pale blue lines and crosses indicate the composites used to Krige the block at the centre of the search ellipse. Local grid north is towards the top of the page. ...........................241

Figure 20 Plan of the estimated Mineral Resource showing the Mineral Resource classification. CLASS = 2 (Indicated Resource), Yellow Blocks, CLASS = 3 (Inferred Resource), Blue Blocks. .......................244

208

LIST OF APPENDICES

APPENDIX A ..............................................................................................................253

Indicator variogram modelling for Pulang Lupa and Kay Tanda ...........................................253

APPENDIX B...............................................................................................................256

Directional Experimental Semi-Variograms...................................................................256

APPENDIX C ..............................................................................................................262

Minesight Estimation Run Files .................................................................................262

209

1. EXECUTIVE SUMMARY AND RECOMENDATIONS

A Mineral Resource estimate has been completed by Dean Fredericksen, Principal Consultant, Ravensgate, for the Pulang Lupa and Kay Tanda deposits of the Archangel Project for which Mindoro Resources Ltd is the beneficial owner. The project area is located ~115 km south of Metro-Manila, in the Batangas Province of Southern Luzon, Philippines.

The Archangel Project has been the subject of recent exploration and resource drilling by Mindoro Resources Ltd. This drilling and subsequent data gathering has been of a standard sufficient quantity and quality to compile a geological model and Mineral Resource estimate in accordance with the requirements of National Instrument 43-101F1, Standards of Disclosure for Mineral Projects.

A section of the Pulang Lupa deposit is classified as Indicated Mineral Resource with a further area of the Pulang Lupa and a significant portion of mineralisation in the Kay Tanda deposit classified as Inferred Resources. The Mineral Resource estimate has been estimated by Ordinary Kriging inside as series of primary mineralisation domains interpreted at >0.15 and >0.25 g/t Au for Pulang Lupa and Kay Tanda respectively. A later mineralisation event is evident in the drilling results and is characterised by a strong Au-Base metal signature with locally “bonanza” relatively high Au grades. This mineralisation has not been included in the Mineral Resource estimate at this stage, given that the geological controls on distribution and continuity of the mineralisation are not yet certain.

The model incorporates an estimation of bulk density based upon the oxidation status of the rock material as interpreted and modelled by Mindoro Resources Ltd geologists. The major stratigraphic rock units have also been modelled in three dimensions. A recent topographic survey has provided the topographic constraints for the resource estimates.

The Mineral Resources have been reported above a cut-off of 0.4 g/t Au for oxide and transitional material and above a cut-off of 0.6 g/t for fresh material. The estimate is summarised in the following table.

Indicated Resource Inferred Resource

Tonnes Grade

AuGrade

Ag

Contained Au

Ounces Tonnes Grade

AuGrade

Ag

Contained Au

Ounces

(000's) (g/t) (g/t) (000's) (000's) (g/t) (g/t) (000's)

Pulang Lupa 3,365 0.88 8.0 95 1,007 0.73 15.1 24

Kay Tanda - - - - 10,592 0.70 1.9 238

Total 3,365 0.88 8.0 95 11,599 0.70 3.0 262

The tonnage and contained ounces figures in this table have been rounded to the nearest thousand and gold grades to the nearest 2nd decimal.

The key recommendations for future work on the Pulang Lupa and Kay Tanda deposits are summarised as follows

Complete close out drilling as determined necessary on the northern and southern margins of the Pulang Lupa deposit.

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Locate the controls on the high grade Ag mineralisation in the upper sections of the Pulang Lupa deposit and determine whether this mineralization style presents a target for future exploration.

Complete additional drilling in the Kay Tanda deposit. This should be targeted to constrain the limits of the higher grade “shoots” or “pods” of the Au-Ag mineralisation that has been identified in an earlier phase of in this study.

It is recommended that to understand the controls on the distribution of the Au-Base metal mineralisation some additional angled diamond drill holes oriented towards local grid north south will be required. The diamond drill core should be structurally oriented and careful geotechnical measurements made for all veining encountered. With this information it may be possible to define additional corridors of this mineralisation style for which tonnage and grade estimates can be made.

An isolated zone of mineralisation has been intersected in the sedimentary units of the Calatagan formation. This mineralisation locally has relatively high “bonanza” Ag grades and represents an additional style of mineralisation that may require further follow up drilling.

Comprehensive down hole surveying and checking should be completed for all future RC drill holes to reduce errors in the Mineral Resource estimate associated with poorly located drill hole traces and assay information.

Routine density measurements should be made for all future diamond drillholes. A simple Archimedes measurement system can be set up in the core processing facility so that measurements can be made at regular down-hole intervals prior to core cutting and sampling.

The assaying QA/QC protocols that were in place for the major data collection phase completed to date has been of reasonable standard and in line with industry best practices. QA/QC procedures could be enhanced by adding additional higher grade standard reference material for inclusion in assay batches. It would also be appropriate to track this information by batch submitted so that any remedial actions required can be initiated immediately if necessary, as and when assay data is returned from the laboratory.

2. INTRODUCTION

2.1 Qualifications, Experience and Independence.

Ravensgate was established in 1997 and specialises in resource modelling and resource estimation services. The company has worked for major clients globally, such as, Mt Keith Nickel Mine for BHP, the Ok Tedi Gold Mine in Papua New Guinea, as well as Freeport’s Grasberg Mine in West Papua and for companies such as Goldfields and Newmont in Ghana, and many other medium sized and junior resource companies which are ASX (Australian Stock Exchange), TSX (Toronto Stock Exchange) or AIM (London Stock Exchange) listed. Ravensgate has focused upon providing resource estimations, valuations, independent technical documentation, and has been involved in the preparation of Independent Reports for Australian, Canadian and the United Kingdom listed companies.

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Dean Fredericksen, MSc Hons, MAusIMM Principal Consultant, Ravensgate - Principal Author

Dean Fredericksen is a geologist with over 18 years experience in mining and exploration geology and resource evaluation. Dean has worked on gold and base metal projects in New Zealand and Australia and has spent the last 12 years in senior positions with Stawell Gold Mines, MPI Mines, Newcrest Cadia Valley Operations and Tritton Resources. During this time Dean has been responsible for Mine Geology functions including compilation of Mineral Resource and Ore Reserve estimates, production geology, near mine exploration and has participated in a number of pre-feasibility and feasibility studies for open pit and underground mining projects. Dean Fredericksen holds the relevant qualification and professional associations required by the ASX, JORC and ValMin Codes in Australia. He is a Qualified Person under the rules of the CIMM and NI43-101.

Stephen Hyland, BSc Geology, MAusIMM – CIMM – GAA Principal Consultant, Ravensgate – Reviewer

Stephen Hyland – Principle Consultant - Ravensgate Resource Consultants BSc Geology, Member of Australasian Institute of Mining and Metallurgy – CIMM – GAA

Stephen Hyland has extensive experience of over 20 years in exploration geology and resource modelling and has worked extensively within Australia as well as offshore in Africa, Eastern and Western Europe, Central and South East Asia, modelling base metals, gold, precious metals and industrial minerals. Stephen’s extensive resource modelling experience commenced whilst working with Eagle Mining Corporation NL in the extensive Yandal Gold Province where for three and half years he was their Principal Resource Geologist. Whilst the majority of his time there had been developing the now successful Nimary (Jundee) Gold Mine, he also assisted the regional exploration group with preliminary resource assessment of Eagle’s numerous exploration and mining leases. Since 1997 Stephen has been a full time Consultant with the consulting firm Ravensgate where he is responsible for all geological modelling and reviews, mineral deposit evaluation, computational modelling, resource estimation, resource reporting for ASX / JORC and other regulatory compliance areas. Primarily Stephen specialises in Geological and Resource Block Modelling generally with the widely used Minesight 3D mine-evaluation and design software. Stephen Hyland holds the relevant qualifications and professional associations required by the ASX, JORC and ValMin Codes in Australia. He is a Qualified Person under the rules of the CIMM and NI43-101.

2.2 Disclosure

This Mineral Resource estimate for the Kay Tanda and Pulang Lupa deposit has been prepared for Mindoro Resources Ltd, who are the beneficial owners of the Kay Tanda Project. This report documentation describes the resource estimation methodologies and assumptions used in defining the Mineral Resource estimates. All resource estimates have been conducted using current industry best practice standards.

Ravensgate personnel have not undertaken a total detailed validation of the collection and processing of all the key input data and geological interpretations. Dr Bruce Rohrlach had been retained by Mindoro Resources Ltd to act as the Independent Consulting Geologist for the major data collection phase during the period November 2005 – April 2007. Dr Rohrlach has extensively documented the geological interpretations and mineralisation models and the process of data collection and subsequent validation in the various sections of the technical report prepared to accompany this estimate. Dr Rohrlach attests to the validity and accuracy of all data supplied to Ravengate. Ravensgate has endeavoured to independently verify a large part of the data supplied but has where necessary relied directly upon Dr Rohrlach’s assertions in this regard.

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The Ravensgate modelling team have been provided with this documentation and the key findings made by a previously engaged Independent Consulting geologist (Full name ?). These findings, as well as other discussions with Dr Rohrlach and also the observations made while constructing this Mineral Resource estimate has formed the basis for the Mineral Resource classifications made in this study. The classification regime arrived at, is in accordance with CIMM National Instrument 43-101, Standards of Disclosure for Mineral Projects and also the JORC Code.

Neither Ravensgate nor any of its employees or associates is an insider, associate or affiliate of Mindoro Resources Ltd or any associated company. Neither Ravensgate nor any of its affiliates have acted previously in any capacity for Mindoro or any of its associates or affiliates.

Ravensgate’s professional fees are based on time charges for work actually carried out, and are not contingent on any prior understanding concerning the conclusions to be reached.

2.3 Scope of Works

Tony Climie (Managing Director of Mindoro Resources Ltd) requested that Ravensgate complete a Mineral Resource estimate for the Kay Tanda Gold project comprising the Pulang Lupa and Kay Tanda project areas. The estimate was to be prepared in accordance with the requirements of National Instrument 43-101F1, Standards of Disclosure for Mineral Projects guidelines and is in the format prescribed by that instrument. The estimate and methodologies described here utilise all recently compiled RC drill hole and diamond drillhole data collected by the site based Mindoro geologists as supplied and or requested by Ravensgate.

The scope of works for the estimate was detailed as follows:

Review of status of interpretations;

Wire-framing as required based on interpretations supplied;

Drill-hole coding and compositing;

Domain statistics;

Variography and neighbourhood analysis;

Block model estimation;

Validation;

Classification;

Mineral Resource reporting and documentation; and

Project debrief and Management review and site visit to the project areas.

2.4 Project Location

The project location is described in detail in section 6 of the main Technical Report. Reference in this document is in relation to the two identified deposits Pulang Lupa and Kay Tanda. The relative location of the two deposits (Pulang Lupa and Kay Tanda) within the overall Archangel Project area is as shown in Figure 1.

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Figure 1 Plan of the Archangel Project area identifying the Pulang Lupa and Kay Tanda prospect areas. The plan in local grid coordinates shows the location of all drill holes and topography contours.

2.5 Company Supplied Data

Mindoro Resources supplied the following data sets upon which this Mineral Resource estimates are based. This majority of this data was collected and validated at a project start up meeting held in Melbourne Australia with Dr Bruce Rohrlach (Independent Consulting Geologist for the project). Some additional supplementary data was requested and supplied electronically by Mindoro Resources’ geologists.

Interpreted Lithology Cross Sections and mineralised zone at 0.1g/t cut-off – section range 9,300N – 10,200N (in pdf format)

Interpreted Alteration Cross Sections – section range 9,300N – 10,200N (in pdf format)

Interpreted Oxidation Cross Sections – section range 9,300N – 10,200N (in pdf format)

DXF section strings for Lithology, Alteration and Oxidation – (local grid section format)

Excel Data files

KT ASSAYS_sep07.xls

KT Collar_Aug07.xls

KT_DH SURVEY for Assay Sep07.xls

KT Lithology_sep07

KT DH SURVEY for Lithology_sep07

KT FRACTURES DATABASE_07october6 Final.xls

Kay Tanda

Pulang Lupa

UTM

North

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Kay-Tanda-Veining-Database.xls

Specific-Gravity-Database.xls

KT Topo Points.xls

Documents

UTM to Local Grid Conversion.doc

Golder-Draft-KT-resource-Calc.pdf

Report M1374 Heap Leaching of Oxide and Transitional Samples from the Kay Tanda Prospect Philippines for MRL Gold Philippines Inc.(Consultants – Peter J Lewis & Associates, July 2007)

Presentations

Kay Tanda Epithermal Deposit

Summary QA/QC – Kay Tanda

In addition to collecting the available data for the Project area two complete days were spent with Dr Bruce Rohrlach reviewing;

The data and data collection methods;

Process and results of the independent verification including the QA/QC of the assay and drilling database completed by Dr Bruce Rohrlach;

Regional and deposit scale geological setting of the project area;

Mineralisation models for the deposits;

Resource modelling approach and outcomes.

2.6 Data Validation

The data sets (Assays, Lithology/Alteration, Oxidation, Fracture and Veining data) provided were loaded into MineSighttm proprietary project files using standard procedures. During the loading process, rigorous checks are made on the validity of the downhole surveys, drillhole depths and sample depths, missing samples and / or geology intervals and also for overlapping sample intervals. There were no issues with the data provided and the loading took place without errors.

Some minor issues were noted with a small number of the downhole surveys, where excessive deviation between some surveys indicated issues with the reliability of approximately five downhole survey azimuth measurements. Plots of the data enabled the measurements to be smoothed to fit the surrounding data.

2.7 Grids

As all cross-sectional data was supplied in local grid coordinates. The modelling undertaken in this study was completed in Local Grid coordinates and all reference to North in is to local grid north.

The conversion between UTM and local grid coordinates at Kay Tanda is as specified by Mindoro Resources.

The Kay Tanda baseline has an origin that was established at drillhole CA-05. This origin is known as 10,000N, 10,000E in local grid coordinates and 316795.67026E and 1507068.30062N in UTM coordinates (WGS 84, Zone 51N). This baseline point was established through a traverse from the nearby Malabrigo lighthouse which is a known / established “trig point” in UTM coordinates.

Local Grid north is oriented at 048 degrees east from UTM north as shown in Figure 1.

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As data was imported it was transformed from UTM by a single point transform and rotation about that point into Local Grid co ordinates.

2.8 Topography

A digital file containing data points representing topographic contours at 5.0m intervals was supplied by Mindoro Resources. This data was sufficient to cover the two main deposit areas Pulang Lupa and Kay Tanda.

When reviewed in detail with the drill hole collars it was evident that a number of the drill hole collars plotted approximately 2 – 5m above the DTM surface. This small error is not seen as a significant risk to the estimate. In order to minimize this effect the collar points were added to the topographic data set as spot height points and subsequently used in the surface DTM triangulation process. During the triangulation process the algorithm was adjusted so as to minimize the triangulation of flat faces so as to form smooth peaks and valleys. This was largely successful although there still remain several flat areas that will require additional survey control prior to any future mining activity.

3. GEOLOGICAL INTERPRETATION AND RESOURCE MODEL

3.1 Geological Setting and Mineralisation

The geological setting has been described in detail in section 9 of the Technical report. Those aspects which are important to the Mineral Resource estimate are summarised as follows.

3.1.1 Stratigraphy

The Pulang Lupa and Kay Tanda deposits are located on the flanks of the Lobo Volcanic centre within a broad sequence of volcanic rocks called the Talihib Volcanic sequence. The general stratigraphic relations ship has been described in detail in section 9.3 of the technical report. The key features of which are:

The lower portion of the Talahib Volcanics is predominantly dacitic in composition and the upper portion which is more widely exposed has a more andesitic affinity;

The Talahib Volcanics have been overlain by bedded tuffaceous and calcareous sedimentary rocks ± minor limestone units called the Calatagan Formation;

The Talahib Volcanics are intruded by a series of diorite and quartz diorite bodies called the Balibago Diorite complex. These rocks are evident in the lower portions of the drillholes throughout the two deposits;

The Balibago diorite complex exhibits a broad dome geometry postulated to be a result of the forceful intrusion of the diorites. A number of hydrothermal breccias thought to be associated with the early intrusion of the diorite bodies of the Balibago Diorite complex have been mapped and also logged within the drilling;

Significant fracturing of the Talahib volcanic immediately above and surrounding the intrusive bodies is described from observations made during the logging of drillholes and is postulated to provide the “space” for mineralising fluids.

Detailed lithology cross sections have been compiled by Mindoro Resources Ltd geologists at 50m spacing through the deposits based upon the logging of the RC and diamond drill holes. The digitised lithology boundaries were provided for this study.

Attempts to create detailed three dimensional lithology models for the deposit areas proved difficult. Continuity between sections was not readily established at that scale. However at the scale of the major formations ie, the Talahib Volcanics, Balibago Intrusive Complex and Calatagan

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Formation it was possible to construct reasonable wireframe models using the interpretations and data provided.

These models provide a basis for analysis and construction of estimation Au mineralization domains and in particular the noticeably mineralisation poor Calatagan Formation against which the estimation domains were be clipped or terminated. In addition these models were utilised to allocate the bulk density parameters to the block model.

The drillhole data set and block models were coded with the codes shown in Table 1.

Table 1 Model drill holes and stratigraphy items and codes

Formation Drill hole/Composite Item – DOM1 Block Model Item - DOM

Calatagan Formation 1 1

Talahib Volcanics 2 2

Balibago Intrusive Complex 3 3

3.1.2 Mineralisation

The mineralisation section of the technical report (Section 11) describes two main styles of epithermal mineralisation at Kay Tanda and Pulang Lupa.

3.1.2.1. Low Sulphidation Au-Ag Mineralisation

The initial mineralisation event is described as a low sulphidation Au-Ag mineralisation style and occurs within veins, stockworks and hydrothermal breccias. The strongest zones of mineralization, are developed within stockworks of low temperature quartz veins and quartz-pyrite stringer veins in highly fractured zones of the Talahib Volcanic Sequence. Geological interpretations indicate that these zones are formed in a domal carapace above the top of the Balibago Intrusive Complex.

The continuity of this earlier mineralisation is strongest at Au cut-off grades of between 0.1g/t to 0.2 g/t with continuity at higher grades (>0.5g/t) restricted to fewer zones both at Pulang Lupa and at Kay Tanda. This apparent lack of continuity at the higher grades may largely be an artefact of the current drill spacing of 50m X 50m. Infill drilling to nominally 12.5m X 12.5 m, as has been completed in a limited area adjacent to section 9900mN in the Kay Tanda deposit, shows good continuity of higher grades (>0.5 g/t Au) between drill holes on the same cross-section and between drill holes on adjacent cross-sections.

The grade association is primarily Au-Ag with very little if any base metal (Zn, Pb, Cu) associations. At Pulang Lupa deposit the Ag/Au ratio is significantly higher (>10 Ag: 1 Au) than that of the Kay Tanda deposit (1 Ag: 0.7 Au). The geological understanding of this relationship is yet to be developed. Locally within the Pulang Lupa area the silver grades are very high, and sometimes observed to be well in excess of 20 g/t Ag.

3.1.2.2. Base metal veins

The second significant style of mineralisation, is interpreted to be a younger event and is characterised by a strong base metal (Zn>Pb>Cu) association with both Au and Ag. Locally the Au and Ag grades are very high (peaking at an assay grade of 246.76 g/t Au and 12.8% Zn) relative to the grades of the primary or older mineralisation that is characterised by Zn grades in excess of 0.1 % Zn (background grades for the primary mineralisation).

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The mineralisation style is characterised by narrow quartz veins and breccia lodes that cross-cut both the Talahib Volcanic Sequence and the underlying Balibago Intrusive Complex. They are best developed in the Kay Tanda area with the strongest development of this style of mineralization occurring in the northeast, north and northwest portions of the Kay Tanda prospect.

The base metal-bearing veins tend to occur deeper in the profile, and commonly overprint members of the Balibago Intrusive Complex. Interpretations of the veins and vein package geometry are limited and the level of continuity between individual intercepts has not been established by drilling at this stage. This restricts the ability to make reliable estimates of the tonnage and grade of this material in either of the two deposits. It would be expected that additional diamond drilling and further collection of carefully oriented structural measurements will be successful in characterising this style of mineralisation. This in turn could contribute to the definition of significant amounts of contained metal in areas towards the base of any future open pit mining operations.

A plot of all intercepts within the drilling data set with Zn grades > 0.5% was made in an attempt to try and characterise the data prior to any resource estimates. The plot as shown in Figure 2 clearly indicates the in the Kay Tanda area where the base Au-Base metal intercepts tend to plot, particularly in the two main EW trending corridors which are potentially sub parallel to the drill sections. The higher Au grade intercepts (Au > 3.0g/t) are sparse and given the drill orientation relative to these trends they may be under sampled in the drilling carried out to date.

Figure 2 Plan showing the location of all drill intercepts with Zn% grades greater than 0.5%. The intercepts are coloured by gold grades as per the legend shown on the plan.

3.1.2.3. Other mineralisation styles

Generally the units of the Calatagan Formation are not mineralised, however locally on Section 9900 mN there is a small zone of mineralisation described as a replacement style. The zone as shown in Figure 3 is characterised by anomalously high Ag grades and a moderate to strong base metal association. Gold grades are highly variable and generally quite low (0.1 – 1.0 g/t Au) within this zone. This zone has been defined by drilling on only one section as shown in Figure 3. As such, the continuity in the three dimensions cannot be demonstrated and this will not be

Pulang Lupa Deposit

Kay Tanda Deposit

21

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included in the Mineral Resource estimate. Further drilling adjacent to these intercepts will assist in defining the geometry, extents and continuity of this mineralisation.

Figure 3 Cross section 9900 mN showing the location of the replacement style mineralisation within the Calatagan Formation. The cross section shows all drillholes and the interpreted boundary between the Calatagan formation and Talahib Volcanics. Drill holes are annotated with Ag grades (left of trace) and Au grades (right of drill hole trace)

3.2 Modelling Approach

The approach to modelling used in this study of the Pulang Lupa and Kay Tanda deposits is based on estimating grades for Au and Ag by Ordinary Kriging.

The author considered the use of Multiple Indicator kriging (a Kriging “variant”, which was used previously in a preliminary estimate by Golders, REF) however chose not to utilise this method given that the assumptions regarding the volume variance correction applied and the mean assigned to the last indicator bin are difficult to support with the current drill spacing and that incorrect assumptions can lead to the introduction of serious bias into the estimate.

Other alternatives that may be considered at a later date once project certainty and geological understanding has increased are Uniform Conditioning (UC) or Conditional Simulation (CS). Ordinary kriging of essentially 50m spaced data will result in a smoothed block model estimate and to gain a greater understanding of the potential selectivity above various cut-off’s at a mining SMU and the potential range of mining outcomes CS will prove useful.

The key tasks undertaken in this study were:

Load and Validate data;

Import all digital cross sectional information;

Where possible and appropriate wireframe the individual lithology units;

Uniform Compositing of assay information;

Calatagan Formation

Talahib Volcanics

Replacement Style mineralisation

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Define and wireframe all Estimation domains;

Construct oxidation surfaces for Oxidised – Transitional and Transitional – Fresh surfaces and then apply as appropriate to the bulk density item in the block model;

Complete statistical analysis of composites for defined estimation domains;

Construct and model semi-variograms for estimation domains where possible;

Initialise, Code and interpolate Estimated grades for metal items in the block model;

Validate the final estimation;

Classify and report the final estimate.

3.3 Definition and Construction of Mineralisation Domains

A series of mineralisation domains were constructed for the Pulang Lupa and Kay Tanda resource areas. The domains were constructed to define the limits of the primary mineralisation and have largely ignored and / or excluded the base metal mineralisation event. As previously discussed, a detailed geological interpretation of mineralisation envelopes which constrain this mineralisation style is yet to be undertaken and completed.

In order to construct these domains the author undertook a complete review of all data sets to establish the key correlation between gold mineralisation and the key geological features. Given successful interpretation of mineralization relationships, it may be possible to establish geological proxies to further support the interpreted mineralisation domains.

3.3.1 Gold, Veining and Fracturing

A data set comprising logged vein percentages in various vein styles and total vein percentage was supplied by the Mindoro Resources Ltd geologists. The data set was loaded to MineSighttm and standard scatter plots were then generated showing total vein percentage and gold grades. The resulting plots, similar to those presented in Figure 4 demonstrated a generally poor correlation between the logged total vein percent and assayed gold grades.

A subdivision of the veins was made to total the logged percentage of quartz and quartz pyrite veins (earlier mineralisation styles) and the total percentage of base metal type veins. This subdivision did not significantly improve any of the correlations.

Cross sections showing vein percentages along with the gold grades were made and viewed to see if this would establish a framework for using logged veining to construct the mineralisation domains. Unfortunately the relationships as indicated by the correlation plots were not always strong and a suitable logged vein percentage threshold could not readily be established from this data set to form the primary basis for definition of the estimation domains. The logging does however provide validation of the grade domains that have been interpreted for the estimation. A cross section showing these relationships is given in Figure 5 where it is seen in some of the drill holes that the relationship between grade and veining is good, although clearly in some others the correlation is not so apparent. This probably indicates a degree of variability on the geological logging of the RC cuttings as much as variability in the local geology.

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Figure 4 Example Scatter plot of Au grades versus logged total vein percent for the mineralised Pulang Lupa area. The correlation coefficient for this data set is 0.074.

Figure 5 Cross section 9850 mN showing logged vein percentage as solid traces as per the legend and gold grades. The resulting interpreted grade domains are shown as Green outlines.

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An additional data set comprising fracture spacing or frequency information exists for the diamond drill holes completed to data. This information may provide further validation of the limits of mineralisation given the mineralisation model described in Section 11 of the main report. Given the limited spatial distribution of the diamond drilling to date in the project area the usefulness of this data is probably limited.

3.3.2 Choosing Au thresholds for domain construction

Given the lack of geological data to comprehensively constrain the interpretation of estimation domains as discussed in previous sections it was decided to create grade based domains to control the estimation. The cut-off grades for these domains were chosen so as to generally enable the interpretations to be carried between cross sections and between drill holes on the same cross section.

These cut-offs were chosen after analysis of Log Probability plots of the potentially mineralised portions of the data sets for the two areas Pulang Lupa and Kay Tanda as shown in figure 1. (The Calatagan Formation lithologies were coded onto the drillholes and these sections are excluded from the plot data for the purposes analysis). These plots are shown in Figures 6 and 7 and indicate flexures or potential population “change triggers” in the plots at approximately 0.15g/t and 0.25g/t for the Pulang Lupa and Kay Tanda areas respectively.

For the Kay Tanda area, where visual continuity of gold mineralisation is not as strong as Pulang Lupa, the analysis was also completed on 4.0m composites to see if this would alter the chosen relative thresholds. The resulting thresholds chosen were very similar to that as determined from the 2.0m composites.

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Figure 6 Log Probability plot of Pulang Lupa 2.0m composites. The chosen threshold of mineralisation or estimation domain was at a cut-off of 0.15g/t as shown

.

0.15 g/t

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Figure 7 Log Probability plot of Kay Tanda 2.0m composites. The chosen threshold of mineralisation or estimation domain was at a cut-off of 0.25g/t as shown

3.3.3 Indicator Kriging of thresholds

In order to assist in outlining the estimation domains at the chosen cut-offs and to provide additional support for the interpreted domain outlines an indicator kriging approach was used as a preliminary domain estimation tool. The resulting kriged indicator value can be considered as an estimated probability that the kriged (estimated) block will exceed the indicator grade threshold.

With this approach an indicator variable (Item = IND1) was set within the drilling files as follows;

1 = Above cut-off threshold, for Pulang Lupa 0.15g/t, for Kay Tanda 0.25g/t

0 = Below cut-off threshold

An indicator block model with the extents as shown in Table 2 was created.

0.25 g/t

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Table 2 Indicator Block Model Extents and Dimensions

The block model was coded for the stratigraphic formations (see Table 1) and the deposit area so that the estimation could be undertaken for each deposit area separately (Pulang Lupa, Area = 2 and Kay Tanda, Area = 1). The indicator estimate was limited to the Talahib Volcanics and Balibago formation only.

Variogram modelling of the indicators was undertaken. The resulting indicator variograms for both the Pulang Lupa and Kay Tanda areas are shown in Appendix 1. The normal (untransformed) variograms have good structure and the resulting variogram models as estimated are given in Table 3.

Table 3 MEDS Rotation Angles, Indicator Variogram Models and Ranges (metres) for Estimation of the Indicator Models

Area Major(m) Minor(m) Vertical(m)

1 Kay Tanda C0 0.054

RotN/DipN/DipE C1 0.056 Range 1 50 23 15

80/15/3 C2 0.086 Range 2 88 55 41

C3 0.044 Range 2 206 143 66

2 Pulang Lupa C0 0.080

RotN/DipN/DipE C1 0.077 Range 1 55 23 22

330/0/-45 C2 0.043 Range 2 80 58 37

0.034 Range 3 163 126 62

Model search parameters were set to estimate the indictor variable within the block model as detailed in Table 4.

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Table 4 Indicator Kriging Estimation Parameters by Area

Area1 Kay Tanda Area 2 Pulang Lupa

Min # Composites 5 5

Max # composites 20 20

Min Distance to Nearest Composite 50 50

If no Composite within 30m do not estimate the block

Search Type Not applied Not Applied

Max # Per Quadrant N/A N/A

Max # per hole Unlimited Unlimited

Search Major 150 150

Search Minor 100 100

Search Vertical 50 40

RotN/DipN/DipE 330/0/-45 80/15/3

The model was displayed and checked against the input data to validate the resulting model and ensure there were no anomalies in the outcomes of the estimation.

Following this a series of “grade shells” at a kriged indicator value of >=0.5 (50% probability of the block exceeding the cut-off) were created in Minesight. These shells formed the basis for construction of the grade based estimation domains.

3.3.4 Estimation Domain Wireframes

The shells created from the kriged indicator block model were used as a basis for subsequent domain construction. They were displayed in cross section with the 2.0m composited drillhole data set and simplified sectional strings created for each of the Pulang Lupa and Kay Tanda areas.

Where isolated indicator shells were encountered in which it was obvious the estimate was based upon one drillhole and / or few intercepts, no domain outline strings were interpreted or defined. These areas tended to be lower in the stratigraphic sequence and when interrogated further, it was observed that the intercepts on which the shells were based, commonly exhibited the characteristic Au-Base metal signature.

There has been no attempt to create separate estimation domains for the Au-base metal style intercepts. Those intercepts that have been omitted are largely within the Balibago Intrusive complex lithologies. Two of these intercepts (KT-101 10.0m @ 13.3g/t Au and 4.58% Zn and KTDH-04 30m @ 18.9g/t and 0.54% Zn) require additional drill testing to determine continuity of this style of mineralization prior to inclusion in any resource estimate. A number of intercepts of this style however have been included within the interpreted estimation domains where they are associated with or are located within areas of significant earlier low sulphidation Au-Ag mineralisation. These intercepts are generally higher in the Talahib Volcanics stratigraphy and given the significantly higher gold grades and that the spatial range of influence of the intercepts has not been comprehensively determined, there is a risk they may overly influence the estimated grade of nearby blocks. This effect will be diminished by applying high grade cuts to the data prior to kriging.

Indicative cross sections showing the diamond drill information, kriged indicator wireframes and the resulting interpreted wireframes through the Pulang Lupa and Kay Tanda areas are shown in

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Figures 8 and 9 respectively. There is a much closer relationship between the interpreted wireframes and the indicator kriged wireframes in the Pulang Lupa area compared to those generated for the Kay Tanda area. The mineralisation is much more continuous and easier to correlate between sections for Pulang Lupa when compared to the Kay Tanda area.

The relative ease with which cut off domains can be interpreted based upon the current drill spacing largely reflects the inherent Mineral Resource “risk” associated with the estimate. Based on this assumption this interpolation “risk” is likely to be much less for the Pulang Lupa area than for the Kay Tanda area.

The drill hole composite and model item codes for the respective estimation domains are shown in Table 5.

Figure 8 Cross section at 9400 mN through the Pulang Lupa area showing the kriged 0.15 g/t Au indicator wireframe at 50% probability (Orange) and the resulting interpreted estimation wireframe (Green). The pale grey line is the topographic surface and the drill holes Au g/t grades are displayed as per the cut off legend.

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Figure 9 Cross section at 9750 mN through the Kay Tanda deposit showing the kriged 0.25 g/t Au indicator wireframe at 50% probability (Orange) and the resulting interpreted estimation wireframe (Green). The pale grey line is the topographic surface and the drill holes Au g/t grades are displayed as per the cut off legend.

Table 5 Estimation Domain Codes

Domain Composite and Model Zone Code

Pulang Lupa 12

Kay Tanda 22

KT Replacement Calatagan Formation Not coded

3.4 Oxidation Domains and Bulk Density Modelling

Oxidation has routinely been logged by Mindoro Resources’ geologists. The classification scheme is simple and has been recorded as:

O = Fully Oxidised

T = Transitional

U = Un-oxidised

Sectional interpretations have been completed by Mindoro Resources’ geologists. These were incorporated into the MineSight project and where required, adjusted to enable wireframe models for each of the surfaces to be constructed. The resulting wireframe models were used to code the block model as per Table 6.

Mindoro Resources provided the results of 345 bulk density measurements that were taken on a selection of diamond drillcore throughout the Pulang Lupa and Kay Tanda deposits. These measurements have been taken for a variety of lithology types and oxidation categories.

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As it has not been possible to construct detailed lithology models for the project areas at this stage, the data was sorted to provide the minimum, maximum and average density by oxidation category for each of the major formations and for which wireframe models were constructed. The results of this are shown in Table 7. The average values for each formation and oxidation category as shown have been stored in the SG Item of the block model and will be used to estimate Mineral Resource tonnage.

Table 6 Oxidation Domain codes

Domain Code – Block model item OXD

Oxidised 1

Transitional 2

Un-oxidised 3

Table 7 Bulk Density data for Pulang Lupa and Kay Tanda lithologies and Oxidation Categories

The average values for each formation and oxidation category have been applied to the block model

Formation Oxide Transitional Fresh Min Max Average Min Max Average Min Max AverageCalataganFormation

2.15 3.23 2.55 2.24 3.25 2.61 2.2 3.05 2.68

TalahibVolcanics

2.21 2.98 2.47 2.00 2.95 2.55 2.24 3.13 2.60

Balibago Intrusives

No 2.57 2.91 2.78 2.41 3.42 2.65

Note a bulk density of 2.65 was applied to all of the occurrences of the Balibago Intrusive unit material.

3.5 Drillhole Data Set, Coding and Compositing

The MRL drillhole data set consists of 147 RC drillholes, sampled at predominantly 2.0m intervals, and 26 diamond holes which have been sampled at mixed sample intervals but predominantly 1.0m intervals. In addition to the MRL drilling there were 13 RC drill holes completed by Chase Resources which have been included in the data set.

An independent validation of the quality of the Chase data was initiated by MRL (McCarty 2005) which shows this data is of suitable quality to be utilised in this estimate. QA/QC information for the MRL drill program is given in Section 15 of the main report.

3.5.1 Compositing and Coding

Prior to selecting a composite interval a check of the raw assay sample interval lengths was completed. The statistics shown in Table 8 are from the assay intervals of this data set.

The data was then composited to 2.0m intervals using a standard MineSight down-hole compositing routine.

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Table 8 Raw Assay Sample Interval Statistics

Cut-off –AI- metres # Above Cut-off % Above Cut-off Mean (m) Above Cut-off

0 14084 100 1.56

0.5 14070 99.90 1.56

1 14001 99.41 1.56

1.5 7853 55.76 2.00

2 7806 55.42 2.01

2.5 49 0.35 3.04

3 43 0.31 3.07

3.5 3 0.02 3.87

4 1 0.01 4.00

The sample interval of 2.0m contains the last most significant number of samples and results in least splitting of existing sample intervals.

The longer assay intervals (2.5 – 4.0 m) were checked to determine their spatial location and are generally from diamond drill holes and are located within areas that are not mineralised. Composites lengths of 2m were chosen for the initial data analysis and all data was coded to this interval prior to primary geological coding.

Compositing was completed prior to any geology coding.

No specific studies were completed on longer composite intervals to see what impact they may have on the quality of the variograms obtained.

3.5.2 Drillhole Coding

The resulting composites were coded for the stratigraphic domains as per Table 1 and the deposit area codes (Kay Tanda, AREA = 1 - Pulang Lupa, AREA = 2) were used to complete the Indicator Kriged block model for estimation domain construction.

Following construction of the estimation wireframes the composites were coded with the estimation domain codes (Table 5) to identify those intercepts that would be used in the Mineral Resource Estimation.

The “correctness” of the coding was checked visually on screen section by section. Some minor manual adjustments were made to some composite intervals based on visualisation against the estimation domain wireframes. These adjustments overall were minor.

3.6 Domain Statistics and Grade Top Cuts

Domain statistics for Au and Ag are shown in Table 8. These include the raw composite statistics as well as the declustered cell statistics for Au and Ag by estimation domain.

The Coefficient of Variation for the Pulang Lupa estimation domains are considerably lower than that for the Kay Tanda area. This observation is probably reflecting the inclusion of more of the sporadic Au-Base metal vein intercepts.

Declustered cell statistics were calculated at range of cell spacing with the 50m X 50m X 20m cells generating the lower declustered mean grades for each of the domains. The declustered mean grades for the estimation domains will be used as a method of validating the grade models generated during the estimation process.

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A review of the populations for outliers or potential cut values was also completed. Log probability plots of Au and Ag grades for both Pulang Lupa and Kay Tanda are shown in Figures 10 - 13.

The application and level of top cuts to the data is generally an arbitrary decision made in the estimation process. In the case for the estimates of Au and Ag for the Pulang Lupa and Kay Tanda deposits this process was deemed necessary to minimise the risk associated with the inclusion of a number of the Au-base metal intercepts which are generally of higher grade than the surrounding mineralisation and for which the range or direction of influence of these intercepts is not known.

The “top cuts” chosen are shown in Table 8. These result in a significant reduction in the mean grade of the composites of approximately 15% and 17% in the Pulang Lupa and Kay Tanda domains respectively.

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Fig

ure

10 Pula

ng L

upa A

u –

Log P

robabil

ity P

lot

Fig

ure

11 K

ay T

anda A

u –

Log P

robabil

ity P

lot

2

32

Fig

ure

12 Pula

ng L

upa A

g –

Log P

robabil

ity p

lot

Fig

ure

13 K

ay T

anda A

g –

Log P

robabil

ity P

lot

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Table 9 Estimation Domain Statistics Calculated on Composite Intervals

Domain ZoneCode

No. of Comps

Raw Grade Min, Max, Mean

CV

Mean UNCUT Grade

Declustered Cells -

50X50X20

Statistics Gold – Au

Pulang Lupa 12 702 0.02 30.5 0.96 2.67 0.84

Pulang Lupa – Cut (9.0 g/t) 12 702 0.02 9.0 0.82 1.72 0.78

Kay Tanda – UnCut 22 2228 0.01 124.4 0.75 4.8 0.65

Kay Tanda –Cut (10g/t) 22 2228 0.01 10.0 0.64 1.55 0.61

Statistics Silver - Ag

Pulang Lupa 12 702 0.15 1578 12.4 5.7 8.7

Pulang Lupa – Cut (250 g/t) 12 702 0.15 250 9.6 3.1 7.4

Kay Tanda – UnCut 22 2228 0.15 116 2.0 2.6 2.0

Kay Tanda –Cut (45 g/t) 22 2228 0.15 45 1.9 2.0 1.9

3.7 Variography and Neighbourhood Analysis

A number of different methods were used to estimate a suitable semi-variogram models to control the estimation. All of this work was completed within the Minesight suite of programs on 2.0m composites flagged with the estimation domains in which they fall. This variography was completed for Au and Ag in each domain separately

3.7.1 Down Hole variogram models

The experimental down-hole semi-variogram were calculated and modelled for each domain on the cut untransformed composite grades using the MineSight down hole variogram tools. Thus the estimation of the Nugget (C0) and relative sills for the estimate ranges can be estimated directly without any transformation required.

Pulang Lupa produced acceptable Au variogram models without a requirement to modify the data set in any way. However for the Kay Tanda area it was necessary to create a sub set of the data around the closer spaced drill hole data to get a reasonable down-hole variogram model in order to estimate the nugget. The modelled variograms are shown in Figure 14 and 15 respectively.

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Figure 14 Downhole Experimental Semi-Variogram Au on 2.0m composites for Pulang Lupa

Figure 15 Downhole Experimental Semi-Variogram Au on 2.0m composites for Kay Tanda

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The estimated nugget of 45% for Kay Tanda is somewhat higher than was modelled for the Pulang Lupa 37% which is what would intuitively be expected based on a visual review of the data set. The resulting experimental variogram does tend to indicate that stationarity or “sameness” has not been established as shown by the variogram trending above the Sill of the data. However the process of modelling the domains has been difficult and it is evident when reviewing the shape of the Log Probability plot and by visual examination of the data that locally there are still high grade and some low grade populations within the domain as modelled. This issue would to some extent be resolved by using additional drilling thereby enabling interpretation of more appropriate domains for the various mineralising events.

Downhole semi-variograms for Ag in both deposit areas were also calculated on the cut untransformed data. The downhole variogram models are shown in Figures 16 and 17. The Kay Tanda variograms were calculated on an unconstrained data set which produced better structured downhole variogram model curves. It was apparent in a review of the estimation domain interpreted on Au grades that it may be possible to construct a broader Ag domain in the Kay Tanda deposit. Given the relativley low mean grade and subsequent value to the project, this is probably insignificant with respect to the outcomes of the modelling process and therefore has not been completed. This task however may need to be carried out if the project were to proceed further in the planning process.

Figure 16 Down-hole Experimental Semi-Variogram Ag on 2.0m composites for Pulang Lupa

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Figure 17 Down-hole Experimental Semi-Variogram Ag on 2.0m composites for Kay Tanda

3.7.2 Directional (“Between Hole”) Variograms

A directional variography study for Au and Ag for both the Pulang Lupa and Kay Tanda was also completed using the MineSight suite of programs. The directional experimental variograms are shown in Appendix B. This additional set of variogram models also applied to the Kriging interpolation runs are detailed in Table 10.

The variograms for Pulang Lupa were modelled using relative variogram models with the relative nugget and sills as estimated from the Normal downhole variogram. The variogram models in the Major and Vertical axis are generally well structured whilst estimating a variogram model for the Intermediate axis was sometimes problematic. Given this it had been observed and inferred that that there is some strong anisotropy has been modelled within the plan of the mineralisation (dipping -20 degrees towards local grid 270).

For the Kay Tanda deposit the Au variograms were modelled using correlograms with the relative nugget and sills as estimated from the Normal downhole variogram. Directional variography indicates a trend in the data of 310 – 330 degrees with respect to local grid, which was also confirmed by the Indicator variogram modelling carried out to assist in defining the estimation domains. A contour plan of the variograms is shown in Figure 18 which also assists in defining the major axis and general anisotropy.

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Table 10 MEDS Rotation Angles, Variogram Models and Ranges for Estimation Domain

Domain Major Minor Vertical

Pulang Lupa - Au C0 0.70

RotN/DipN/DipE C1 0.83 Range 1 66.5 20.0 11.0

270/-20/0 C2 0.36 Range 2 164.0 64.0 30.0

Pulang Lupa - Ag C0 50

RotN/DipN/DipE C1 98 Range 1 40.5 20.0 13.0

75/10/3 C2 50 Range 2 196.0 135.0 114.0

Kay Tanda - Au C0 0.55

RotN/DipN/DipE C1 0.21 Range 1 41.5 16.5 4.63

315/-20/30 C2 0.28 Range 2 75.0 31.0 21.5

C3 0.18 Range 3 118.3 92.2 50.3

Kay Tanda - Ag C0 30

RotN/DipN/DipE C1 35 Range 1 24.1 24.1 12.8

0/0/0 C2 18 Range 2 112.8 112.8 45.0

Figure 18 Contour of Au variogram models for Kay Tanda.

Nth (Local Grid)

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3.8 Block Model Estimation

3.8.1 Model Extents

The model extents and cell sizes are shown in Table 11. These cover the entire project area (Pulang Lupa and Kay Tanda) as shown in Figure 1.

Table 11 Archangel Block Model Extents and Cell Sizes

Minimum Maximum Size (m) Number

Easting 9200 10200 25 40

Northing 9000 10500 25 60

Elevation 0 500 10 50

The chosen block dimensions of 25m X 25m X 10m are considered to be an adequate block size based upon the average drill spacing of 45m (calculated using MineSight search routine). It is likely that additional drilling may enable a smaller SMU to be outlined than the block dimension chosen for this study. However it should be noted that at this stage (with the current drill spacing) that the use of a smaller block dimension in the estimation process may have the potential to introduce conditional bias into the estimate.

A MineSight block model with the items shown in Table 12 was generated. The model file for use in studies is referred to by the file name KTLC15.dat.

Table 12 Block Model Items and Descriptions for KTLC15.dat

Item Minimum Maximum Precision Description

TOPO 0 100 0.1 Percentage of Block Below Topography Surface

AUPPM 0 20 0.01 Kriged Au grade (* main item)

AGPPM 0 100 0.1 Kriged Ag grade

ZN% 0 5 0.001

AREA 0 2 1 1 = KT, 2= PL

ZONE 0 100 1 Estimation Domain

DOM 0 100 1

IND1 0 1 0.01

IND2 0 1 0.01

IND3 0 1 0.01

CLASS 0 5 1 Resource Classification

SG 0 3 0.01 SG, Density Item

OXD 0 3 0.01 Oxidation

ORK% 0 1 0.01

ZONE% 0 100 1 Percentage of Block inside Estimation Domain, ORE%

#CMPS 0 99 1 # Composites to estimate Au in Block

DIST 0 100 1 Distance to nearest composite SLOPE 0 1 0.01 Slope of Regression of the Kriging Estimate Au

KVAR 0 10 0.01 Kriging variance

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3.8.2 Model Coding

The model was coded by majority domain code with a minimum percentage inside the domain of 1%. The percentage inside the solid was stored as this is required for resource volume and tonnage summaries.

The model is classified as an “Ore %” model and as such future calculations should be completed that way.

3.8.3 Estimation Parameters

The estimation method for both Au and Ag was ordinary kriging. The variogram parameters given in Table 9 were used as part of the primary interpolation inputs. To determine the required estimation parameters a series of kriging neighbourhood analysis tests were completed for each domain and for each element to identify the optimal search strategies. These were conducted using a standard MineSight “debug” routine which outputs the following:

The number of composites used to Krige the block and the distance of the block from each composite used;

The local Kriging weights; or;

The slope of regression of the estimate; and

A Kriging ellipse showing the composites used to estimate the test blocks. An example is shown in Figure 19.

Several tests were conducted using various search strategies for both Pulang Lupa and Kay Tanda to define the appropriate Kriging parameters. The appropriate search parameters are based upon minimising the number of negative kriging weights and optimising the slope of regression of the estimate (SLOPE) to as close as possible to a value of 1.0 (Quantitative Geoscience - Vann approach). The biggest controlling factor in the value of SLOPE is the distance to the closest composite. As this distance increases there is a marked decrease in the SLOPE. Both of these values are stored within the block model as part of the estimation process and as such assist in determining appropriate Mineral Resource classification.

For the Pulang Lupa estimate where the relative nugget, as estimated from the variogram modelling, is relatively low and the variogram ranges applied relatively long there is a tendency for the Slope of Regression of the estimate to be on average much closer to one than for the Kay Tanda area, where the relative nugget is observed to be much higher and the variogram ranges shorter.

Following analyses using a variety of the kriging neighbourhoods and for a number of blocks in each estimation domain the kriging parameters as shown in Table 13 were ultimately chosen. This type of exercise was completed as part of the normal modelling review for both Au and Ag items.

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Table 13 Kriging Estimation Parameters by Estimation Domain

All directions are in Local Grid

Pulang Lupa Au – Zone12

Pulang Lupa Ag – Zone12

Kay Tanda Au – Zone22

Kay Tanda Ag – Zone22

Min # Composites 15 15 15 10

Max # composites 35 40 30 30 Min Distance to Nearest Composite 30 40 40 50 If no Composite within 30m do not estimate the block

Search Type Full Full Full Full

Max # Per Quadrant/Octant N/A N/A N/A N/A

Max # per hole 9 7 8 7

Search Major 120 120 120 150

Search Minor 45 90 90 150

Search Vertical 20 60 45 50

RotN/DipN/DipE 270/-20/0 75/10/3 315/-20/30 0/0/0

Where an octant search has been applied the octant is oriented within the given search ellipse.

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Figure 19 An example of the output from the debug routine in MineSight that enables the analysis of the optimum Kriging parameters. This search ellipse example is the one applied to Kay Tanda Au estimate. The pale blue lines and crosses indicate the composites used to Krige the block at the centre of the search ellipse. Local grid north is towards the top of the page.

The Minesight run files used for interpolation of the AUPPM and AGPPM are shown for review in Appendix D.

3.9 Validation

The primary validation tools used were domain statistics as presented in Table 14. The mean estimated grades for Pulang Lupa and Kay Tanda compare very favourably with the declustered mean grade of the composites for each domain.

In addition “on screen” checks were completed to compare estimated block grades with the 2.0m composite grades for both Au and Ag. There were no significant issues identified during this review process.

The model appears following this review to be a valid resource estimate based on the overall geological and mineralogical understanding of the deposit and is in line with the data supplied and the methods generally used as part of industry best practice.

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Table 14 Model Domain Statistics Weighted by % Ore in the Block and Declustered Cell Statistics.

Domain Zone Code Mean Declustered Composite Grade

Model Grade

Pulang Lupa - Auppm 12 0.78 0.78

Pulang Lupa - Agppm 12 8.7 8.8

Kay Tanda - Auppm 22 0.61 0.60

Kay Tanda - Agppm 22 1.9 1.8

3.10 Mineral Resource Classification

The central area of the Pulang Lupa deposit as shown highlighted in yellow in Figure 20 is classified as Indicated Resources. It is considered that the quantity, continuity and characteristics of the mineralisation are estimated with sufficient certainty to enable classification as Indicated Resources in accordance with the requirements of National Instrument 43-101F1 Standards of Disclosure for Mineral Projects. The limits of the Pulang Lupa deposit have not been fully tested and therefore the margins of the modelled area are classified as Inferred Resources only.

Whilst the drill spacing and data integrity is similar for the Kay Tanda area there does remain some uncertainty in the geological controls on grade continuity and thus limits of the stronger mineralised shoots within the Mineral Resources. As such the Kay Tanda deposit has been classified as an Inferred Resource.

Mineral Resource classification for the Pulang Lupa and Kay Tanda deposits as per the National Instrument 43-101F1, Standards of Disclosure for Mineral Projects, has considered the following factors determined during this study;

Data integrity

Quality assurance and quality control programs for sampling and assaying have been conducted during the data collection phase as described in Section 15 of the main report. The documentation and discussion of the results indicates that the assay data is considered to be of reasonable quality with there being low risk of assay bias or poor quality assaying affecting the integrity of the Mineral Resource estimate.

Detailed logging information has been collected for all drill holes into the deposits. The information appears to be of reasonable detail but has yet to enable geological interpretation of the mineralising domains and the definition of the geological envelope for the Au-Base metal zones. The data does however support the grade based interpretations ultimately developed.

Down hole surveying has not been conducted on the RC drill holes completed in the deposit. As such the spatial location of the drill holes cannot be confirmed with certainty. The Pulang Lupa deposit which essentially outcrops on the surface with the most assay informed blocks above cut off being generally less than 90m down hole is considered to be relatively Low Risk with respect to the quality of the resource estimate. For the Kay Tanda area some of the RC drill holes that have intersected mineralisation are relatively deep, sometimes in the order of 150m down hole. The deviation in these drill holes may be significant and it would be advisable that future infill RC drilling be surveyed to confirm spatial location.

Downhole surveys have been completed on all except the first four diamond drill holes. The diamond drill-hole data appears to be overall of reasonable quality and the few diamond drill holes that “twin” some of the RC drill holes do confirm the

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grades observed from the original RC assays thus do also support the plotted location of the RC drill holes as well as the distribution of assay grades and therefore the RC sampling.

RC drilling has resulted in largely dry samples being produced which is important to maintain overall sample integrity and thereby prevent potential sampling bias. A log of samples affected by water has been kept by MRL geologists and the integrity of those samples has been independently checked by Dr Rohrlach.

A check for transcription errors in the entering of information has been completed as part of the QA/QC and verification review conducted by Dr Rohrlach. This indicates the data to be of high integrity.

Geological modelling and grade continuity.

For Pulang Lupa the grade continuity at low cutoff grades (>0.15 g/t Au) is very good at the drill spacing of approximately 50m X 50m. This has enabled the construction of robust estimation domains with relative ease. This has also been supported by a robust indicator model estimated at the same cutoff.

For Kay Tanda the continuity of grades as represented by the current drill spacing of approximately 50m is not easily demonstrated other than in the one local area where the drill spacing was closed down to 12.5m X 12.5m. It is apparent that to increase certainty in the construction of estimation domains and estimation of tonnes and grade above cut-off ranges, the deposit will require additional closer spaced drilling to be carried out.

The estimation domains that have been constructed are considered appropriate in relation to the currently understood model of formation of the main mineralisation domains. It is generally understood that the earlier or Low sulphidation Au-Ag event formed as a carapace over the intrusive Balibago formation as is reflected in the interpreted wireframe models.

The estimate of Au, the primary grade item for Mineral Resource reporting, has been limited to blocks that first have informing composites less than 30 m from the block centre. This is a reasonable limit to prevent kriging of grades into areas not adequately supported by drilling and is consistent with the general resource classifications applied.

Consideration for potential mining and processing constraints

Mindoro Resources Ltd has commissioned metallurgical studies that indicate the oxide and transitional material component of the ore zones to be amenable to current heap leaching technologies. (Peter J Lewis & Associates, 2007)

Mindoro Resources geologists have logged oxidation indices for the mineralised material and constructed wireframes for the base of complete oxidation and base of transitional or mixed oxide fresh material that will support classification for potential leaching indices and the estimation of metallurgical recoveries.

Mindoro Resources are understood to have suitable title over the property, but Ravensgate is not qualified to make any assurances with respect to project ownership or any other legal concerns.

Whilst the topography is steep it is not considered restrictive of potential open pit mining for which the currently defined resources would be amenable.

Economic studies have yet to be completed on any of the Mineral Resources defined in this study. As such the project to date has no reported defined or identified or mineral reserves.

The outcomes of the estimation process have been reviewed in respect of the values stored in the blocks for parameters such as the distance to the nearest composite and Slope of Regression of

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the Estimate. The subsequent classification has used these values along with consideration of the other criteria as discussed previously to determine the appropriate Mineral Resource Classifications used in this study.

Figure 20 Plan of the estimated Mineral Resource showing the Mineral Resource classification. CLASS = 2 (Indicated Resource), Yellow Blocks, CLASS = 3 (Inferred Resource), Blue Blocks.

3.11 Mineral Resource Reporting

The topography surface constructed from the survey information supplied by Mindoro Resources has been gridded and used to estimate the percentage of each block that is below the topographic surface. This topography percentage has been stored in the TOPO item of the block model. The bulk density applied is as per the oxidation and stratigraphy model as described in Section 3.4 of this report.

Cut-off grades of 0.4 g/t Au for oxide and transitional material and 0.6 g/t Au for fresh material used to define and report the Mineral Resources were supplied by Mindoro Resources. These cut-offs are considered reasonable, based upon a potential open cut mining and heap leach operation. These cut-offs are based upon advice received by Mindoro that similar cut-off grades are currently being applied to open cut mining and heap leach operations in other similar areas of South East Asia.

At this stage no detailed mining studies and economic evaluations have been completed so it is not possible to provide detailed supporting information for the cut-off grades that may be used in future.

A cut-off of 0.4 g/t Au has been applied to Oxide and Transitional material and 0.6 g/t Au has been applied applied to the Fresh material for both deposits. Detailed Mineral Resource summary tables at a range of cut-off grades for Pulang Lupa and Kay Tanda are shown in Tables 15 to 18.

Pulang Lupa

Deposit Kay TandaDeposit

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Table 15 Mineral Resource Estimate Summary for the Pulang Lupa and Kay Tanda deposits (unrounded)

Indicated Resource Inferred Resource

Tonnes Aug/t

Agg/t

Contained Au ounces

Tonnes Aug/t

Agg/t

Contained Au ounces

Pulang Lupa 3,365,111 0.88 8.0 94,728 1,007,354 0.73 15.1 23,754

Kay Tanda - - - - 10,591,691 0.70 1.9 238,305

Total 3,365,111 0.88 8.0 94,728 11,599,045 0.70 3.0 262,059

Table 16 Indicated Resource Summary at a Range of cut-off grades for Pulang Lupa Deposit

Zone Cut-off BCM Above

Cut-offTonnes Above

Cut-off

Au g/t aboveCut-off

Ag g/t above Cut-off

Contained Au

(Ounces)

Pulang Lupa 0.2 487,613 1,205,941 0.87 14.1 33,887

Indicated Resource Oxide 0.3 482,738 1,193,894 0.88 14.2 33,779

0.4 466,072 1,152,584 0.90 14.7 33,351

0.5 423,314 1,046,746 0.95 14.8 31,836

0.6 367,601 909,108 1.01 15.2 29,404

0.7 289,989 717,283 1.11 16.2 25,506

0.8 232,288 574,484 1.20 17.7 22,109

Pulang Lupa 0.2 668,915 1,715,370 0.80 4.5 44,176Indicated Resource Transition 0.3 648,040 1,660,895 0.82 4.6 43,681

0.4 598,727 1,533,680 0.86 4.9 42,258

0.5 544,165 1,394,320 0.90 4.7 40,256

0.6 488,665 1,251,702 0.94 4.5 37,748

0.7 370,227 947,842 1.04 4.4 31,540

0.8 295,790 758,027 1.11 4.1 26,955

Pulang Lupa 0.2 364,062 947,737 0.75 3.5 22,914

Indicated Resource Fresh 0.3 360,375 937,966 0.76 3.5 22,828

0.4 319,812 832,066 0.81 3.6 21,642

0.5 299,000 777,678 0.83 3.8 20,852

0.6 261,000 678,847 0.88 3.8 19,119

0.7 181,937 473,037 0.97 3.9 14,813

0.8 128,062 332,962 1.07 3.5 11,412

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Table 17 Inferred Resource Summary at a Range of Cut-off Grades for Pulang Lupa Deposit


Cut-off

Tonnes AboveCut-off

Au g/t aboveCut-off

Ag g/t aboveCut-off

Contained Au

(Ounces)

Pulang Lupa 0.4 135,844 335,941 0.74 21.4 7,982

Inferred Resource Oxide 0.5 125,666 310,780 0.76 22.1 7,614

0.6 107,057 264,651 0.80 21.0 6,790

0.7 66,516 164,418 0.89 22.8 4,710

0.8 42,448 104,926 0.96 23.8 3,249

Pulang Lupa 0.3 168,427 430,113 0.65 15.8 8,961

Inferred Resource Transition 0.4 158,927 405,888 0.67 16.5 8,704

0.5 142,739 364,610 0.69 17.6 8,089

0.6 99,927 255,438 0.76 19.7 6,200

0.7 45,145 115,746 0.90 19.4 3,338

0.8 31,687 81,428 0.96 24.8 2,518

Pulang Lupa 0.3 133,375 346,775 0.75 5.3 8,306

Inferred Resource Fresh 0.4 124,750 324,350 0.77 5.1 8,040

0.5 116,687 303,387 0.79 5.0 7,735

0.6 102,125 265,525 0.83 4.9 7,069

0.7 73,562 191,262 0.90 4.7 5,504

0.8 36,312 94,412 1.05 3.5 3,187

Pulang Lupa 0.2 1,958,236 4,981,877 0.79 8.8 126,215

Total Indicated and Inferred 0.3 1,928,799 4,905,584 0.80 8.9 125,544

0.4 1,804,133 4,584,508 0.83 9.4 122,044

0.5 1,651,571 4,197,521 0.86 9.5 116,330

0.6 1,426,374 3,625,270 0.91 9.4 106,299

0.7 1,027,377 2,609,589 1.02 9.4 85,411

0.8 766,589 1,946,239 1.11 9.9 69,394

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Table 18 Inferred Resource Summary at a Range of Cut-off Grades for Kay Tanda Deposit


Cut-off Tonnes Above

Cut-off

Au g/t aboveCut-off

Ag g/t above Cut-off

Contained Au (Ounces)

Kay Tanda 0.2 1,648,973 4,075,238 0.52 2.4 68,263

Inferred Oxide 0.3 1,620,911 4,005,924 0.53 2.4 67,617

0.4 1,248,604 3,085,839 0.57 2.5 56,948

0.5 614,664 1,519,169 0.71 2.4 34,727

0.6 366,943 906,879 0.83 2.3 24,113

0.7 210,831 521,133 0.97 2.3 16,168

0.8 93,745 231,717 1.24 2.6 9,238

Kay Tanda 0.2 2,003,828 5,115,167 0.56 2.2 92,260

Inferred Transition 0.3 1,957,515 4,997,071 0.57 2.2 91,255

0.4 1,590,078 4,057,649 0.62 2.0 80,361

0.5 994,785 2,538,327 0.72 2.1 58,677

0.6 565,669 1,443,899 0.86 1.8 39,831

0.7 388,000 989,587 0.96 1.6 30,607

0.8 257,437 656,653 1.07 1.4 22,653

Kay Tanda 0.2 3,062,098 7,981,925 0.65 1.3 167,576

Inferred Fresh 0.3 3,015,473 7,860,700 0.66 1.3 166,548

0.4 2,591,723 6,756,810 0.71 1.3 154,021

0.5 1,976,132 5,152,161 0.79 1.3 130,861

0.6 1,323,216 3,448,203 0.91 1.2 100,996

0.7 917,187 2,390,590 1.03 1.2 79,165

0.8 707,375 1,843,062 1.12 1.1 66,070

Total Inferred 0.2 6,714,900 17,172,331 0.59 1.8 327,950

0.3 6,593,900 16,863,694 0.60 1.8 325,309

0.4 5,430,406 13,900,297 0.65 1.8 291,383

0.5 3,585,582 9,209,657 0.76 1.7 224,146

0.6 2,255,828 5,798,982 0.89 1.5 165,001

0.7 1,516,018 3,901,311 1.00 1.4 125,932

0.8 1,058,558 2,731,433 1.12 1.3 97,917

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4. CONCLUSIONS AND RECOMMENDATIONS

Sufficient exploration information has been collected to estimate Mineral Resources for the Pulang Lupa and Kay Tanda deposits. This information has been collected in accordance with sound industry best practice and is of sufficient quality and quantity to enable the estimation of the Indicated and Inferred Mineral Resources in accordance with the guidelines of National Instrument 43-101.

The continuity of mineralisation in the Kay Tanda deposit is not as easily modelled as for the Pulang Lupa deposit and will require additional drilling to elevate the resource classification from Inferred to Indicated Resources. When completing this drilling it will be beneficial for the geologists to determine the detailed geological controls on the distribution of grades in the deposit area and also to look towards constructing mineralisation envelopes that can be used to constrain future estimates.

There are a number of significant intercepts in the Kay Tanda deposit area that have not contributed to the Mineral Resource estimate completed in this study. These intercepts are related to the later Au-Base metal mineralisation event. Carefully planned and implemented diamond drilling is required to define the geological controls on this particular style of mineralisation such that a detailed wireframe model (3-D envelopes) that represent the distribution and continuity of this mineralisation can be constructed. When this is possible the quantity and quality of this mineralised material can be re-viewed and upgraded if necessary.

The key recommendations for future work on the Pulang Lupa and Kay Tanda deposits are summarised as follows:

Complete close out drilling as required on the northern and southern margins of the Pulang Lupa deposit. It is not yet closed off in the southern (local grid) margin.

Determine the controls on the high grade Ag mineralisation in the upper sections of the Pulang Lupa deposit and determine whether this style presents a target for future exploration.

Complete additional drilling in the Kay Tanda deposit which will be targeted to constrain the limits of the higher grade “shoots” or “pods” of the earlier Au-Ag mineralisation that has been identified in this study.

It is recommended that to understand the controls on the distribution of the Au-Base metal mineralisation it will be required that additional angled diamond drill holes be needed oriented towards local grid north south. The diamond drill core should be oriented and carefully measured with respect to the observed structural features observed including all veining encountered. With this information it may be possible to define corridors of this mineralisation style and for which additional tonnes and grade estimates can be made.

An isolated zone of mineralisation has been intersected in the sedimentary units of the Calatagan formation. This mineralisation locally has “bonanza” Ag grades and represents a further style of mineralisation for follow up drilling.

Down hole surveying should be completed for all Future RC drillholes to reduce errors in the Mineral Resource estimate associated with poorly located drill hole traces and subsequently assay information and therefore modelled mineralization domains.

Routine bulk density measurements should be made for all future diamond drillholes. A simple Archimedes measurement system can be set up in the core processing facility so that measurements can be made at regular intervals prior to sampling.

The assaying QA/QC protocols that were in place for the major data collection phase completed to date was of a good standard. It could be enhanced by adding some higher grade standard reference material for inclusion in assay batches. It would also be appropriate to track this information by batch submitted so that any remedial actions required can be initiated as and when assay data is returned from the laboratory.

249

5. REFERENCES

McCarty, S. 2005. QAQC Data verification and repeat sampling of RC samples, Archangel Project Batangas Phillipines. Internal consultants report prepared for Mindoro Resources Ltd by Stephen McCarty consulting geologist. February 2005.

Rayner, S. and Eslake, A. 2007. Heap leaching of oxide and transition samples from the Kay Tanda prospect Philippines. Internal consultants report prepared for Mindoro Resources Ltd by Peter L Lewis & Associates, Report M1374, July 2007.

Vann, J, Jackson, S, and Bertoli, O. 2003. Quantitative Kriging Neighbourhood Analysis for the Mining Geologist — A Description of the Method with worked case examples, in Proceedings of the 5th International Mining Geology Conference (Australasian Institute on Mining and Metallurgy, Melbourne)

250

6. GLOSSARY

aeromagnetic A survey undertaken by helicopter or fixed-wing aircraft for the purpose of recording magnetic characteristics of rocks by measuring deviations of the Earth’s magnetic field.

airborne geophysical data

Data pertaining to the physical properties of the Earth’s crust at or near surface and collected from an aircraft.

aircore Drilling method employing a drill bit that yields sample material which is delivered to the surface inside the rod string by compressed air.

alluvial Pertaining to silt, sand and gravel material, transported and deposited by a river.

alluvium Clay silt, sand, gravel, or other rock materials transported by flowing water and deposited in comparatively recent geologic time as sorted or semi-sorted sediments in riverbeds, estuaries, and flood plains, on lakes, shores and in fans at the base of mountain slopes and estuaries.

alteration The change in the mineral composition of a rock, commonly due to hydrothermal activity.

andesite An intermediate volcanic rock composed of andesine and one or more mafic minerals.

anomalies An area where exploration has revealed results higher than the local background level.

antiformal An anticline-like structure.

Archaean The oldest rocks of the Precambrian era, older than about 2,500 million years.

assayed The testing and quantification metals of interest within a sample.

Au Chemical symbol for gold.

Bedrock

Bulk Density

Any solid rock underlying unconsolidated material.

carbonate Rock of sedimentary or hydrothermal origin, composed primarily of calcium, magnesium or iron and CO3. Essential component of limestones and marbles.

chert Fine grained sedimentary rock composed of cryptocrystalline silica.

chlorite A green coloured hydrated aluminium-iron-magnesium silicate mineral (mica) common in metamorphic rocks.

clastic Pertaining to a rock made up of fragments or pebbles (clasts).

depletion The lack of gold in the near-surface environment due to leaching processes during weathering.

dolerite A medium grained mafic intrusive rock composed mostly of pyroxenes and sodium-calcium feldspar.

ductile Deformation of rocks or rock structures involving stretching or bending in a plastic manner without breaking.

dykes A tabular body of intrusive igneous rock, crosscutting the host strata at a high angle.

erosional The group of physical and chemical processes by which earth or rock material is loosened or dissolved and removed from any part of the Earth’s surface.

fault zone A wide zone of structural dislocation and faulting.

feldspar A group of rock forming minerals.

251

felsic An adjective indicating that a rock contains abundant feldspar and silica.

foliated Banded rocks, usually due to crystal differentiation as a result of metamorphic processes.

follow-up A term used to describe more detailed exploration work over targets generated by regional exploration.

g/t Grams per tonne, a standard volumetric unit for demonstrating the concentration of precious metals in a rock.

gabbro A fine to coarse grained, dark coloured, igneous rock composed mainly of calcic plagioclase, clinopyroxene and sometimes olivine.

geochemical Pertains to the concentration of an element.

geophysical Pertains to the physical properties of a rock mass.

granite A coarse-grained igneous rock containing mainly quartz and feldspar minerals and subordinate micas.

granodiorite A coarse grained igneous rock composed of quartz, feldspar and hornblende and/or biotite.

greywackes A sandstone like rock, with grains derived from a dominantly volcanic origin.

hydrothermal fluids Pertaining to hot aqueous solutions, usually of magmatic origin, which may transport metals and minerals in solution.

igneous Rocks that have solidified from a magma.

infill Refers to sampling or drilling undertaken between pre-existing sample points.

intermediate A rock unit which contains a mix of felsic and mafic minerals.

intrusions A body of igneous rock which has forced itself into pre-existing rocks.

ironstone A rock formed by cemented iron oxides.

joint venture A business agreement between two or more commercial entities.

laterite A cemented residuum of weathering, generally leached in silica with a high alumina and/or iron content.

lead A metallic element, the heaviest and softest of the common metals.

magnetite A mineral comprising iron and oxygen which commonly exhibits magnetic properties.

metamorphic A rock that has been altered by physical and chemical processes involving heat, pressure and derived fluids.

Mt Million Tonnes.

mylonite A hard compact rock with a streaky or banded structure produced by extreme granulation of the original rock mass in a fault or thrust zone.

outcrops Surface expression of underlying rocks.

pegmatite A very coarse grained intrusive igneous rock which commonly occurs in dyke-like bodies containing lithium-boron-fluorine-rare earth bearing minerals.

porphyries Felsic intrusive or sub-volcanic rock with larger crystals set in a fine groundmass.

ppb Parts per billion; a measure of low level concentration.

Proterozoic An era of geological time spanning the period from 2,500 million years to 570 million years before present.

regolith The layer of unconsolidated material which overlies or covers in situ basement rock.

residual Soil and regolith which has not been transported from its point or origin.

252

Resources

Resource Estimate

In situ mineral occurrence from which valuable or useful minerals may be recovered.

Methodology of estimation of the volume of tonnages of identified resources – normally summarized and stated according to the guidelines of the JORC (Dec 2004) reporting code.

rhyolite Fine-grained felsic igneous rock containing high proportion of silica and felspar.

rock chip sampling The collection of rock specimens for mineral analysis.

schist A crystalline metamorphic rock having a foliated or parallel structure due to the recrystallisation of the constituent minerals.

scree The rubble composed of rocks that have formed down the slope of a hill or mountain by physical erosion.

sedimentary A term describing a rock formed from sediment.

sericite A white or pale apple green potassium mica, very common as an alteration product in metamorphic and hydrothermally altered rocks.

shale A fine grained, laminated sedimentary rock formed from clay, mud and silt.

sheared A zone in which rocks have been deformed primarily in a ductile manner in response to applied stress.

sheet wash Referring to sediment, usually sand size, deposited over broad areas characterised by sheet flood during storm or rain events. Superficial deposit formed by low temperature chemical processes associated with ground waters, and composed of fine grained, water-bearing minerals of silica.

silica Dioxide of silicon, SiO2, usually found as the various forms of quartz.

sills Sheets of igneous rock which is flat lying or has intruded parallel to stratigraphy.

silts Fine-grained sediments, with a grain size between those of sand and clay.

soil sampling The collection of soil specimens for mineral analysis.

stocks A small intrusive mass of igneous rock, usually possessing a circular or elliptical shape in plan view.

strata Sedimentary rock layers.

stratigraphic Composition, sequence and correlation of stratified rocks.

stream sediment sampling

The collection of samples of stream sediment with the intention of analysing them for trace elements.

strike Horizontal direction or trend of a geological structure.

Poorly exposed bedrock.

sulphide A general term to cover minerals containing sulphur and commonly associated with mineralisation.

supergene Process of mineral enrichment produced by the chemical remobilisation of metals in an oxidised or transitional environment.

tectonic Pertaining to the forces involved in or the resulting structures of movement in the Earth’s crust.

veins A thin infill of a fissure or crack, commonly bearing quartz.

volcanics Formed or derived from a volcano.

zinc A lustrous, blueish-white metallic element used in many alloys including brass and bronze.

253

APPENDIX A

Indicator variogram modelling for Pulang Lupa and Kay Tanda

Downhole – Semi-Variogram of Indicator1 (>0.15g/t) Pulang Lupa

Pulang Lupa – Semi-Variogram Indicator 1 (>0.15g/t Au) – Modelled in the plane of the Mineralised Envelope. Major Axis in Black. Semi Major in Blue

Pulang Lupa - Intermediate – Ind1

254

Pulang Lupa – Vertical (Minor) Axis – Short Range IND1

KT Indicator (>0.25g/t) – Major Axis – Normal Variogram

KT Indicator (>0.25g/t) – Intermediate Direction – Normal Variogram

255

KT Indicator (>0.25g/t) – Minor Axis/Direction – Normal Variogram

256

APPENDIX B

Directional Experimental Semi-Variograms

Pulang Lupa Au – Zone12 – Semi-Variogram model for Major Axis – Relative experimental variogram

Pulang Lupa Au - Intermediate Axis– Relative experimental variogram

257

Pulang Lupa Au – Vertical (Minor) Axis – Modelled on Normal experimental variogram

Kay Tanda Au - Directional variograms were modelled using Correlograms. The nugget and sills were set from the Downhole variogram which was modelled using a normal data

Kay Tanda Au – Major Axis – Modelled on correlogram

258

Kay Tanda Au – Intermediate Axis – Modelled on correlogram

Pulang Lupa Ag Directional variography

259

Pulang Lupa – Downhole variogram on data set cut to 150g/t.

Pulang Lupa Ag – Experimental Directional variogram (Correlogram) – Major Axis – mirrors gold Variography.

260

Pulang Lupa Ag – Intermediate Axis correlogram

Pulang Lupa Ag – Minor Axis correlogram

Kay Tanda Ag – Directional variography

261

Kay Tanda Ag - Variogram models in the horizontal plane – Correlogram. The model shows no anisotropy in the horizontal plane

Kay Tanda Ag - Vertical axis - Correlogram

262

APPENDIX C

Minesight Estimation Run Files

Minesight Run file Pulang Lupa Au – Zone 12. MEDS-624V1 10=ktlc10.dat 9=ktlc09.20m 15=ktlc15.dat; MEDS-624V1 3=rpt624.au1 30= ** KRIGING of 3-D block values for AUPPM **

RUN = RESET

USR = / Tue Oct 9, 2007 9:49:06 AM AUS Eastern Standard Time

IOP3 = 1. / 1=3-D spherical search; 0=2-D search IOP4 = 0 / 0=No geologic matching; 1=Match one item IOP6 = 0 / 0=Use true dist.; 1=Use anisotropic dist. IOP7 = 25 / Min # of comps for interp IOP11= 00 / Row # for extended output IOP12= 0 / 0=All; 1=Octant; 2=Quadrant search; 3=Split Octant; COM 4=Split Quadrant. COM Note: Negative#=use rotated search. By Default, COM octants & quadrants are defined using the project's axes. IOP16= 45 / Max.# of composites for interpolating a block IOP19= 9 / Max.# of composites per hole (DEFAULT=No limit) IOP20= 8 / 0=Store variance; 1=STD DEV; 2=Rel. variance

PAR1 = 250. / Primary X-search distance PAR2 = 250. / Primary Y-search distance PAR3 = 250. / Primary Z-search distance PAR4 = 250. / Limiting search distance PAR7 = 30. / Max distance to closest point PAR8 = 30. / Max distance to project single composite PAR27= 5 5 2 / Block discretization in X,Y,Z

IOP17 = 0 /0=Ordinary kriging, 5=Simple PAR30 = 0. /Mean grade of the area to be simple kriged

CMD = VGM PROJECT CMD = SEARCH 120. 45. 20. 270. -20. 0. CMD = NUG 0.7 CMD = SPH 0.83 66.5 20. 11. 270. -20. 0. CMD = SPH 0.36 164. 64. 30. 270. -20. 0.

ITM1 = AUPPM AUCUT CALC KRIGE ITM2 = SLOPE Block error ITM3 = ZONE Block limit ITM4 = ZONE RANGE 12. 12. ITM5 = DIST Block calc rings ITM6 = #CMPS Block calc #comp CMD = Block limit ZONE 12 CMD = ELEV ZMID

I-O = 0 / Debug level END 0 0 0 0 0 0

263

Minesight Runfile Kay Tanda Au – Zone 22 MEDS-624V1 10=ktlc10.dat 9=ktlc09.20m 15=ktlc15.dat; MEDS-624V1 3=rpt624.au2 30= ** KRIGING of 3-D block values for AUPPM **

RUN = OMIT

USR = / Mon Oct 15, 2007 8:59:15 PM AUS Eastern Standard Time

IOP2 = 9 / Max # of composites per octant or quadrant IOP3 = 1. / 1=3-D spherical search; 0=2-D search IOP4 = 0 / 0=No geologic matching; 1=Match one item IOP6 = 0 / 0=Use true dist.; 1=Use anisotropic dist. IOP7 = 15 / Min # of comps for interp IOP11= 00 / Row # for extended output IOP12= -1 / 0=All; 1=Octant; 2=Quadrant search; 3=Split Octant; COM 4=Split Quadrant. COM Note: Negative#=use rotated search. By Default, COM octants & quadrants are defined using the project's axes. IOP16= 35 / Max.# of composites for interpolating a block IOP19= 8 / Max.# of composites per hole (DEFAULT=No limit) IOP20= 8 / 0=Store variance; 1=STD DEV; 2=Rel. variance



CMD = SEARCH PROJECT CMD = VGM PROJECT CMD = SEARCH 120. 90. 45. 315. -30. 30. CMD = NUG 0.55 CMD = SPH 0.764 41.5 16. 4. 315. -30. 30. CMD = SPH 1.043 74.9 31. 21. 315. -30. 30.

ITM1 = AUPPM AUCUT CALC KRIGE ITM2 = SLOPE Block error ITM3 = ZONE Block limit ITM4 = ZONE RANGE 22. 22. ITM5 = DIST Block calc rings ITM6 = #CMPS Block calc #comp CMD = Block limit ZONE 22 CMD = ELEV ZMID

I-O = 0 / Debug level END0 0 0 0 0 0

264

Minesight Runfile Pulang Lupa Ag – Zone 22 MEDS-624V1 10=ktlc10.dat 9=ktlc09.20m 15=ktlc15.dat; MEDS-624V1 3=rpt624.Ag1 30= ** KRIGING of 3-D block values for AGPPM **

RUN = OMIT

USR = / Sun Oct 21, 2007 7:32:58 PM AUS Eastern Standard Time




CMD = SEARCH PROJECT CMD = VGM PROJECT CMD = SEARCH 120. 90. 60. 75. 10. 3. CMD = NUG 56. CMD = SPH 98. 40.5 20. 13. 75. 10. 3. CMD = SPH 50. 196. 135. 114. 75. 10. 3.

ITM1 = AGPPM AGCUT CALC KRIGE ITM2 = ZONE Block limit ITM3 = ZONE RANGE 12. 12. CMD = Block limit ZONE 12 CMD = ELEV ZMID

I-O = 0 / Debug level END 0 0 0 0 0 0

265

Minesight Runfile Kay Tanda Ag – Zone 22

MEDS-624V1 10=ktlc10.dat 9=ktlc09.20m 15=ktlc15.dat; MEDS-624V1 3=rpt624.Ag2 30= ** KRIGING of 3-D block values for AGPPM **

RUN = OMIT

USR = / Fri Nov 16, 2007 5:15:29 PM AUS Eastern Daylight Time




CMD = SEARCH PROJECT CMD = VGM PROJECT CMD = SEARCH 150. 150. 50. 0. 0. 0. CMD = NUG 30.8 CMD = SPH 35. 24.1 24.1 12.8 0. 0. 0. CMD = SPH 18. 112.8 112.8 45. 0. 0. 0.

ITM1 = AGPPM AGCUT CALC KRIGE ITM2 = AREA Block limit ITM3 = DOM Block limit ITM4 = DOM1 RANGE 2. 3. ITM5 = AREA RANGE 1. 1. CMD = Block limit AREA 1 CMD = Block limit DOM 2 3 CMD = ELEV ZMID

I-O = 0 / Debug level END0 0 0 0 0 0




20. OTHER RELEVANT DATA AND INFORMATION

No other relevant data, nor information, is currently available in respect of the Archangel Property.

21. INTERPRETATION AND CONCLUSIONS

21.1 Regional

The Archangel project encompasses several overlapping magmatic-hydrothermal Cu-Au mineralizing

systems that coincide with a northeast-trending belt which trends parallel to regional arc-normal

structures. This mineralized belt contains high-level intrusions of diorite, quartz diorite and dacite

porphyries that are associated with widespread hydrothermal alteration, brecciation and extensive

epithermal mineralization along the 5-km-long Archangel corridor. These arc-normal faults became

increasingly extensional during the Late Miocene to Pleistocene period, following mid- to late Miocene

collision at the southern end of the West Luzon (Bataan) Volcanic Arc. Crustal extension in the region

was synchronous with incipient extension along the adjacent Macolod Corridor. A series of dacitic

intrusions were emplaced along the Archangel corridor during the Pliocene. These intrusions were

responsible for the establishment of mineralizing centres inferred at Marita and in the Bootin-Kalabasa

region and identified in the broader Kay Tanda region (Balibago, Kay Tanda, Pulang Lupa and

Lumbangan).




Figure 91 – Four annular centres of strong IP chargeability anomalies are interpreted to represent the pyrite

haloes developed within and around the carapace of porphyry-related intrusive centres. Each is associated with

shallow-level hydrothermal alteration systems that coalesce along the northeast-trending Archangel corridor.

Mindoro’s drill testing has, for the most part, been focused on the southwest quadrant of the Kay Tanda intrusive

centre, and extensive areas to the north, northeast and east remain to be tested.

Systematic regional grid-based IP surveys have defined broad regions of electrical chargeability that

are interpreted to map the pyritic haloes to deep-seated porphyry intrusions in the region. At low

chargeability values (5-10 msecs) the anomalies coalesce into a regional northeast-trending anomaly

some 5 km long by 1.8 km wide along the Archangel corridor. At high chargeability values (15-40

msecs) this regional IP chargeability anomaly is resolved into two large annular-shaped anomalies that

are approximately 1.6 km in diameter in the Pulang Lupa-Kay Tanda-Lumbangan region and in the

Marita region (Figure 91). Two additional and subsidiary, annular-shaped anomalies are also resolved

in the Balibago and Bootin regions and are approximately 1-km in diameter. These are interpeted to be

centered on a series of four high-level intrusive porphyry stocks, several of which may amalgamate at

significantly greater depth. The geology of the district in concert with the extensive collection of

geophysical and geochemical anomalies collectively suggests that the Archangel region bears the hall-

marks of a major mineralized epithermal-porphyry district.




MRL have focussed their resource delineation drilling in the southwest quadrant of a large annular IP

anomaly that is centered near the Kay Tanda and Pulang Lupa prospects (Figure 91), a relatively

small area within an extensive area of prime exploration territory with high metallogenic potential.

21.2 Mineralization

There are several styles of mineralization and alteration that are recognized at the Kay Tanda prospect

and surrounding region. They comprise two principal mineralization events, an early porphyry event of

Mid to Upper Miocene age associated with the dioritic Balibago Intrusive Complex and a younger

evolving and multi-stage epithermal event of probable Pliocene age associated with high-level dacite

porphyry intrusions. The older and underlying porphyry mineralization does not host significant

mineralization in areas tested by the exploration program to date, and most mineralization encountered

is related to the younger multi-stage epithermal system.

The extent of mineralization in the older porphyry system is not presently quantified since it extends to

deep levels that are not adequately tested by deep drilling. The coeval epithermal environment to this

early porphyry system may have been largely removed by erosion. Early porphyry Cu-related alteration

assemblages [sericite-chlorite-clay (SCC) + quartz-sericite-pyrite (phyllic)], rare quartz ± chalcopyrite

± bornite ± molybdenite ± anhydrite mineralization and coeval hydrothermal breccias are related to this

initial Miocene porphyry event. These formed at depth in the Balibago area where extensive Cu

anomalism is observed in association with pyritic fractures in SCC-altered rocks, at depth below and

marginal to Kay Tanda within the diorites of the Balibago Intrusive Complex, and potentially below the

North Lumbangan area.

The second mineralization event is a significantly younger overprinting epithermal system of probable

Pliocene age that evolved through three (3) main stages as the magmatic system waned through time.

The early stages of the epithermal event were dominated by magmatic fluids and these became

increasingly dilute with time as the meteoric water increasingly convected through the system in the

latter stages of its cooling history.

i) The earliest stage of the epithermal system resulted from the initial degassing of dacite intrusions

that penetrated the pre-existing Balibago Diorite Complex. This involved the formation of minor areas

of acid-sulfate alteration with hypogene alunite and pyrophyllite (Comsti et al., 2007) whose relics are

locally preserved at the surface of Kay Tanda. The acid alteration overprints earlier porphyry-stage

hydrothermal breccias at Kay Tanda and occurs in some permeable tuff horizons within the Talahib

Volcanic Sequence. The alteration comprises silica plus pyrophyllite-kaolinite ± diaspore ± alunite. No

high-sulfidation mineralization is recorded in association with this acid-alteration, most probably

because magmatic vapors expanded to very low pressure prior to condensation in the groundwater

system. The early advanced-argillic alteration was dominated by low-pressure but hot acidic magmatic

vapor, with limited involvement of meotoric water.

ii) While geothermal gradients and magmatic heat input in the Kay Tanda region remained high but as

degassing of the magmatic system began to wane, a shallow-level geothermal system was established

in the overlying and heavily fractured volcanic rocks. Groundwater began to convect down through the




fractured volcanic carapace to the dacitic stocks and dykes, and to deeper levels as isotherms began to

retreat. Fracture permeability within the geothermal system at Kay Tanda and elsewhere along the

Archangel trend was strongly influenced by northeast-trending extensional faults. These structures may

have localized dacite porphyry intrusions. They appear to have focussed groundwater circulation,

resulting in a northeast-trending corridor of intense argillic alteration dominated by quartz-illite and

lesser smectite, chlorite and carbonate and coincident northeast-trending zones of Au anomalism (see

regional soil sampling). Extensive, low-sulfidation epithermal quartz-Au-Ag stockwork veins (low-

temperature chalcedonic, banded and colloform quartz veins plus pyritic stringers) formed within the

carapace of the Balibago Intrusive Complex. The hydrothermal fluids that formed the epithermal

quartz-Au-Ag stockwork veins were weakly acidic, relatively low-temperature and moderately saline,

as evidenced by extensive illite-sericite alteration, low-temperature silica textures and substantial

transport of silver respectively. These fluids likely contained decreasing tho substantial components of

primary entrained magmatic fluid.

iii) As the system waned further, increasing quantities of meteoric water became involved in the

hydrothermal system at still deeper levels. Surface-derived bicarbonate waters were progressively

drawn down to greater depth, potentially along NNW-trending structures (see Figure 92), where they

were heated in proximity to the residual cores of cooling dacite stocks. Mixing between late-expelled,

hot, ascending, primary neutral-chloride magmatic brines and descending secondary bicarbonate waters

resulted in the formation of quartz-carbonate-basemetal veins that are typified by neutral alteration

assemblages. Zones of bonanza gold mineralization probably occurred in the fluid-mixing interface that

developed along NNW-trending structures (see Figure 92). The basemetal-rich character of the latter

stages of the Kay Tanda epithermal system is attributed to the involvement of a significant component

of neutral chloride magmatic brine with chloride-complexing of Zn and Pb. These previousely trapped

neutral magnetic brines became increasingly assessable to the hydrothermal system as groundwaters

circulated deeper into the magmatic environment during retrograde cooling.

Final descent of very shallow and cool acid-sulphate waters may have been responsible for late-stage

gypsum-anhyrite ± basemetal veins.

The transition from acidic > weakly acidic > neutral mineral assemblages through the three (3) stages

of the epithermal system is related to the decreasing magmatic input into the geothermal system over

time as the dacite porphyry stocks cooled. The progressive deepening of the mineralization through

time from early shallow acid-sulfate alteration > intermediate depth and underlying argillic alteration

and Qtz-Au-Ag stockworks > deep neutral assemblages with carbonate-quartz-basemetal

mineralization, is interpreted to reflect the downward migration of geotherms as the thermal regime

collapsed over time. The porphyry source(s) associated with the evolving mid-Pliocene epithermal

event at Kay Tanda-Puulang Lupa may lie at substantial depth beneath and lateral to the Kay Tanda

region.

Late-stage acidic supergene waters, generated by the surficial oxidation of pyrite, have resulted in

widespread supergene enrichment of epithermal stockwork mineralization at the surface of the Kay

Tanda and Pulang Lupa prospects. This weathering-related enrichment has resulted in an approximate

two-fold upgrade in Au-tenor in local areas of strong oxide mineralization. The late supergene leaching

of the highly fractured and altered protlith, together with the quartz-rich nature of the argillic alteration




assemblage, have rendered the mineralized rocks highly amenable to heap leaching of Au and Ag, as

revealed by preliminary metallurgical testwork.

21.3 Resource Calculations

Sufficient exploration information has been collected to estimate preliminary mineral resources for the

Pulang Lupa and Kay Tanda deposits. This information has been collected in accordance with sound

industry best practice and is of sufficient quality and quantity to enable the estimation of the Indicated

and Inferred Mineral Resources in accordance with the guidelines of National Instrument 43-101.

The Mineral Resources have been reported above a cut-off of 0.4 g/t Au for oxide and transitional

material and above a cut-off of 0.6 g/t for fresh material. The classification regime is in accordance

with CIMM National Instrument 43-101, Standards of Disclosure for Mineral Projects and also the

JORC Code. The resources were calculated by Ordinary Kriging. The estimates are summarised below.




K.Tanda: Indicated Resource – No indicated resource.




The continuity of mineralisation in the Kay Tanda deposit is not as easily modelled as for the Pulang

Lupa deposit and will require additional drilling to elevate the resource classification from Inferred to

Indicated Resources.

There are a number of significant intercepts in the Kay Tanda deposit area that have not contributed to

the Mineral Resource estimate completed in this study. These intercepts are related to the later Au-Base

metal mineralisation event. Carefully planned and implemented diamond drilling is required to define

the geological controls on this particular style of mineralisation such that a detailed wireframe model

(3-D envelopes) that represent the distribution and continuity of this mineralisation can be constructed.

When this is possible the quantity and quality of this mineralised material can be re-viewed and

upgraded if necessary.

21.4 Areas of Potential

The Kay Tanda and Pulang Lupa prospects are interpreted to form part of a substantially larger

mineralizing system which to date remains to be fully explored. MRL’s resource delineation drilling at

Kay Tanda and Pulang Lupa has focussed within a relatively small area that is contained within the

shallow portions of the southwest quadrant of an otherwise extensive IP chargeability anomaly at Kay

Tanda-Pulang Lupa that is approximately 1.6-km-wide. In respect of this mineralizing centre, one of 4




recognised centres along the Archangel corridor, there are several potential avenues for adding

substantial ounces of Au+Ag to the preliminary resource base at Kay Tanda-Pulang Lupa:

a) The present indicated component of the resource is contained entirely within the Pulang Lupa

prospect. Additional tonnages of material that are presently classified as an inferred resource at

Pulang Lupa as well as the significantly larger Kay Tanda inferred resource could be largely

converted to the indicated resource category with relatively modest amounts of additional

drilling that would better define grade continuity. This work would have potential to

significantly increase the current indicated resource figure.

b) The majority of the high-grade and locally bonanza grade intersections at depth, which relate to

the younger base-metal-rich mineralizing event, are not accounted for in the present resource

calculation due to insufficient understanding of their orientation, thus preventing reliable

estimation domains to be defined. These deeper, high-grade and locally bonanza-grade quartz-

carbonate-basemetal vein arrays are an important exploration target in the deeper parts of the

Kay Tanda system that have potential to markedly improve any economic outlook of Kay Tanda.

There is sound, albeit preliminary, geological reason to believe that the deeper base-metal vein

systems trend NNW, near orthogonal to the older and shallower Au-Ag quartz stockworks which

have a prominent northeast control. Preliminary evidence identified by the principal Author and

MRL geologists in August 2006 (3-D distribution of logged basemetal veins plotted using

Micromine) and additional independent indications revealed by Dean Fredericksen in October

2007 (plotting of the distribution of high Au-Zn intersections - Figure 92) tentatively suggest

that NNW-trends may control the zones of high-grade basemetal mineralization. A possible

reason the bonanza intersection in drill-hole KTDH-04 (21.3m @ 23.5 g/t Au) was not

intersected in follow-up drilling may be because the vein system runs at a low angle to the drill-

section (i.e. NNW). A significant and possible structural displacement of the intrusive-volcanic

contact between sections 10050mN and 10100mN in the vicinity of KTDH-04 (northeast side

down) may reflect such a NNW-trending structural zone.

It appears that MRL may be on the cusp of understanding the directional controls on the higher-

grade base-metal vein system that lie at deeper levels of Kay Tanda. Using carefully targeted

diamond drillholes oriented orthogonal to the current drilling, MRL are well placed to rapidly

test the orientation of these bonanza veins. Once their orientation is confirmed, MRL would

then be able to more rapidly delineate the zones of bonanza grade and trace them along strike,

thus incorporating them into the resource estimate at Kay Tanda and Pulang Lupa. This would

have potential to substantially improve the result of any future economic analysis.




Figure 92 – Plot of the locations of intercepts of intersections which comprise grades of > 1 g/t Au and > 0.8%

Zn. These are a proxy for base-metal veins which are typically sphalerite-rich and locally bonanza grade.

Extensive areas of excellent potential for both porphyry Cu-Au mineralization and additional

epithermal mineralization occur within the broader Archangel property and particulary in and around

the Kay Tanda mineralizing centre:

a) There is good potential for delineation of contiguous extensions of the shallow Kay Tanda

quartz-Au-Ag stockwork mineralization to the ENE of Kay Tanda along the zone of argillic

alteration (defined by Pima surveys and which coincides with Au anomalism in soils) that trend

toward the Marita prospect. This zone passes through the prospective north and south

Lumbangan areas where IP anomalies are strong and where Pima data indicates the presence of

Fe-oxides at surface and high-temperature illite alteration.

b) The area contiguous with and directly North and NNE of Kay Tanda has potential for

underlying porphyry mineralization. The presence of intense chlorite-sericite (SCC) alteration

and anhydrite veining at depth in diamond holes that lie near the northeast margin of the Kay

Tanda prospect, and the location of the center of the 1.6-km-wide IP chargeability anomaly that

lies near the northeast margin of the Kay Tanda drill grid (Figure 91), suggest that a porphyry

target may lay at depth proximal to the northeast margin of the Kay Tanda deposit.

c) Pima surveys indicate that the most prospective target in the Balibago region may lie south of

the area that has been drill-tested, where a northwest-trending topographic lineament is




coincident with an IP chargeability anomaly at depth (n=4) and where Pima identifies

anomalously high-temperature illite alteration. This area may lie close to the populated centre at

Balibago.

d) The Marita and Bootin prospects remain prime exploration targets.

22. RECOMMENDATIONS

The key recommendations for future work on the Pulang Lupa and Kay Tanda deposits are summarised

as follows:

• Complete close-out drilling as required on the northern and southern margins of the Pulang Lupa

deposit. It is not yet closed off in the southern (local grid) margin.

• Determine the controls on the high grade Ag mineralisation in the upper sections of the Pulang Lupa

deposit and determine whether this style presents a target for future exploration.

• Complete additional drilling in the Kay Tanda deposit which will be targeted to constrain the limits of

the higher grade “shoots” or “pods” of the earlier Au-Ag mineralisation that has been identified in

this study.

• It is recommended that to understand the controls on the distribution of the Au-Base metal

mineralisation, additional angled diamond drill holes will be needed oriented towards local grid

north-south. The diamond drill core should be oriented and carefully measured with respect to the

observed structural features including all veining encountered. With this information it may be

possible to define corridors of this mineralisation style and for which additional tonnes and grade

estimates can be made.

• An isolated zone of mineralisation has been intersected in the sedimentary units of the Calatagan

formation. This mineralisation locally has “bonanza” Ag grades and represents a further style of

mineralisation for follow up drilling.

• Down hole surveying should be completed for all future RC drillholes to reduce errors in the Mineral

Resource estimate associated with poorly located drill hole traces and subsequently assay information

and therefore modelled mineralization domains.

• Routine bulk density measurements should be made for all future diamond drillholes. A simple

Archimedes measurement system can be set up in the core processing facility so that measurements

can be made at regular intervals prior to sampling.

• The assaying QA/QC protocols that were in place for the major data collection phase completed to

date was of a good standard. It could be enhanced by adding some higher grade standard reference

material for inclusion in assay batches. It would also be appropriate to track this information by batch

submitted so that any remedial actions required can be initiated as and when assay data is returned

from the laboratory.




• When completing additional drilling, it will be beneficial for the geologists to determine the detailed

geological controls on the distribution of grades in the deposit area so as to assist in construction of

mineralisation envelopes that can be used to constrain future estimates.

Additional key recommendations for future work in the broader Pulang Lupa and Kay Tanda area and

elsewhere on the Archangel property are summarised as follows:

• MRL should undertake a more regional and system-wide approach during subsequent exploration

drilling to enable identification of other proximal, peripheral or separate areas of mineralization

within the confines of the regional IP chargeability responses. To date, most exploration drilling has

been driven by the strategy of generating a preliminary resource on which to progress market interest.

However, areas of higher potential may exist external or peripheral to the areas of current drilling.

Given the large number of drill holes at Pulang Lupa and Kay Tanda, it is recommended that a higher

proportion of any future drilling activity be assigned to testing peripheral and regional targets.

This future exploration drilling should be conducted concurrently with drilling designed to define the

NNW-trending carbonate-basemetal vein systems below Kay Tanda. Provided exploration funding is

available, this would enable MRL to increase the odds of exploration success in a region which the

author believes has great potential for discovery of additional deposits of varying styles.

• Numerous NW-trending photo-lineaments that coincide with drainages along the Archangel trend

(northeast of Kay Tanda and in the Marita region) should be factored into future exploration targeting

should the NNW trend be proven important for the bonanza base-metal-gold veins below Kay Tanda.

• Deep drilling should test the central portions of the 1.6-km-wide IP chageability anomaly that is

centred northeast of the Kay Tanda deposit as a test for a porphyry Cu-Au target. The drill site should

be located in a topographically low area to maximize depth penetration.

• Extensions to the Kay Tanda Au-Ag stockworks along the northeast-trending argillic alteration zone

near Lumbangan, and repetitions of possible base-metal mineralization along NNW-trending

structures that cross-cut the same area, should be targeted and drill tested. Grid soil samples in the

Pulang Lupa, Kay Tanda and Lumbangan region should be assessed for basemetal analyses (Zn) and

if Zn has not been assayed, the pulps if available should be submitted for zinc analyses as a test for

possible structural corridors of bonanza basemetal-gold veins.

• The Marita and Bootin prospect areas should be mapped in detail to work these up to drill-ready

status, assisted by existing IP, geochemistry and Pima data, and supplemented by additional detailed

rockchip and/or channel sampling as appropriate in areas of defined Au anomalism (see Figure 49).




23. REFERENCES

Aurelio, M.A., 2006, Geologic structures of the Archangel Project (Pulang Lupa and Kay Tanda deposits), Lobo,

Batangas, Leg 1: Preliminary Results, October 2006.

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.

Avila, Emil Jr. 1980. Report on the geology and mineral resources of southern Batangas covering Lobo,

Batangas City, Malabrigo and San Juan Quadrangles. Bureau of Mines and Geosciences Technical

Information Series No. 14-80.

Bailey, D. G. 2003. Geology and precious metals resource estimates: Kay Tanda Project, Archangel Project,

Batangas Province, Philippines, Mindoro Resources Limited, January 2, 2003.

Bailey, D.G., 2005. Lobo Prospect, Batangas Province, Philippines, Southwest Breccia Zone Geology and

Mineral Resources. Mindoro Resources Ltd. Internal Report. August 29, 2003. 5 pp.

Berger, B.R. and Eimon, P. 1983. Cameron Volume on Unconventional Mineral Deposits, AIME Society of

Mining Engineers, pp. 191-205.

Buenavista, A.G., 1989: Results of exploration on the Archangel prospect, Lobo, Batangas Province, the

Philippines. WMC Internal Report (unpubl.), 23p.

Buenavista, A. G. 1991. Results of exploration on the Archangel prospect, Lobo, Batangas Province, the

Philippines. A project terminal report presented to the claim owners – Western Mining Corporation

(WMC).

Comsti, M.E.C., Reyes, A.N. and Peña, R.E. 2007. A review of Kay Tanda drill cores (KTDH-01 to KTDH-10),

Archangel Project, Lobo, Batangas For MRL Gold Philippines, Inc. May 15, 2007.

Corbett, G. 1996. Comments on the structural controls to gold-copper mineralization in the Chase Minerals

Batangas Project, Philippines. Internal Company Report, Chase Minerals. 8 pp. November 1996.

Corbett, G. J. and Leach, T. M. 1994. SW Pacific Rim Au/Cu Systems: Structure, alteration and mineralization, a

workshop presented at the University of Papua New Guinea, Port Moresby. June 7-8, 1994.

Encarnasión, J. 2004. Multiple ophiolite generation preserved in the northern Philippines and the growth of an

island arc complex. Tectonophysics, 392, pp. 103-130.

Gaña, L.L., Lab-Oyan, B., Fianza, and Salas, R. M. 2004. Archangel Progress Report - MRL Gold Philippines,

Internal Report 2004.

Haynes, M. 1999. Interpretation of Taysan aeromagnetic data, Lobo Project, the Philippines. Billiton Philippines

Internal Report. 11 pp.

Hedenquist, J. 1997. Epithermal Gold Deposits: Styles, characteristics and exploration. A Short Course. 4th

February 1997.

Miguel, J.S. 1997. Report on Archangel Au-Ag Project (Lobo, Batangas). Chase Minerals Philippines

Corporation, Internal Company Report.




Palomaria, R.G. 1997. Progress Report – August 1997. Chase Minerals Philippines Corporation, Internal

Company Report.

Pubellier, M., Quebral, R., Rangin, C., Deffontaines, B., Muller, C., Butterlin, J. and Manzano, J. 1991. The

Mindanao collision zone, a soft collision event within a continuous strike-slip setting. Journal of

Southeast Asian Earth Sciences, 6, pp. 239-248.

Pubellier, M., Quebral, R., Aurelio, M. and Rangin, C. 1996. Docking and post-docking escape tectonics in the

southern Philippines. In: Hall, R. and Blundell, D. (eds.), Tectonic Evolution of Southeast Asia.

Geological Society Special Publication No. 106, pp. 511-523. 1996.

Rangin, C. 1991. The Philippine Mobile Belt: A complex plate boundary. Journal of Southeast Asian Earth

Sciences, 6 (3/4), pp. 209-220.

Rayner S. and Eslake, A. 2005. Heap leaching testwork on a sample from the Kay Tanda prospect, Philippines.

Internal Company Report, Report M0977.

Rayner, S. and Eslake, A. 2007. Heap leaching of oxide and transition samples from the Kay Tanda prospect,

Philippines. Internal Company Report. Report M1374.

Reyes, A.G. 1990. Journal of Volcanology and Geothermal Research, 43, pp. 279-309.

Rohrlach, B.D. and Loucks, R.R. 2005. Multi-Million-Year Cyclic Ramp-up of Volatiles in a Lower Crustal

Magma Reservoir Trapped Below the Tampakan Copper-Gold Deposit by Mio-Pliocene Crustal

Compression in the Southern Philippines; in Porter, T.M. (Ed.), Super Porphyry Copper & Gold Deposits: A Global Perspective; PGC Publishing, Adelaide.

Rohrlach, B. 2006. Preliminary assessment of controls on gold mineralization interpreted from RC chip samples

from the Kay Tanda prospect. Internal Company Report, Mindoro Resources Ltd.

Rohrlach, B. and Jimenez, F. 2006. Preliminary assessment of surface vein orientations at Kay Tanda, Archangel

– Batangas. Internal Company Report, Mindoro Resources Ltd.

Sillitoe, R.H., 1989. Economic Geology Monograph 6, pp. 274-291.

Sudo, M., Listanco, E.L., Ishikawa, N., Tagami, T., Kamata, H. and Tatsumi, Y., 2000. K-Ar Dating of the

volcanic rocks from Macolod Corridor in southwestern Luzon, Philippines: Toward understanding of the

Quaternary volcanism and tectonics. J. Geol. Soc. Phil., 55, 89-104.

Taylor, B. and Hayes, D.E. 1980. The tectonic evolution of the South China Basin. In: Hayes, D.E. (ed.), The

Tectonic and Geologic Evolution of South-east Asian Seas and Islands. American Geophysical Union

Monograph 23, pp. 89-104.

Tebar, 1998. Tenement due diligence and technical data evaluation of the Lobo Project, Batangas, Philippines.

Vinluan, T.S., Guintu, A.T., Javelosa, R.A., Dayanghirang, C.D. and Rebonquin, L.C. 2007. Preliminary

environmental impact assessment, 120-Hectare Archangel Project, Barangay Balibago, Lobo, Batangas.

Internal Mindoro Report.

Wolfe, J.A., Manuzon, M.S., and Divis, A.F., 1980. The Taysan porphyry copper deposit, southern Luzon

Islands, Philippines: Journal of the Geological Society of the Philippines, v. 34, no. 1.




24. DATE AND SIGNATURES

CERTIFICATE OF QUALIFICATION

I, Bruce David Rohrlach of 21 Whalley Drive, Wheelers Hill 3150, Melbourne, Victoria, Australia, hereby certify that:

1. I am a Professional Geoscientist employed as a private consultant under a sole trader business

registered under the same name, with A.B.N (Australian Business Number) 98 652 506 754.

2. I am responsible for the preparation of the technical report titled “Independent Geological Report on the Au-Ag Resource at Kay Tanda Prospect Area, Southern Luzon, Philippines” (the “Technical Report”) (Sections 1-18 and 20-26) and dated 7th February 2008.

3. I am a member in good standing of the Australian Institute of Mining and Metallurgy (AusIMM),

membership number 207261. 4. I am a graduate of the University of Adelaide, South Australia with a B.Sc. degree (1986) and an

Honours degree (1987) in geology. I am a graduate of the Research School of Earth Sciences (RSES), Australian National University, Canberra, Australia (2002) with a Ph.D in the field of economic geology.

5. I have practiced my profession continuously for the past 20 years. I have been involved in mineral

exploration on properties in Australia and the Philippines and have undertaken project generation activity for areas in Chile and Argentina. I have acted as an industry consultant for projects in the Australia, Philippines, Indonesia, Papua New Guinea, Mongolia, Turkey, Iran, Armenia and Azerbaijan. I conducted Ph.D research on the Tampakan porphyry Cu and high-sulfidation epithermal Cu-Au deposit, Mindanao, Philippines.

6. I was employed for 14 years by Western Mining Corporation Ltd in Australia and in the

Philippines. I currently work as an independent geological consultant.

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

8. This technical report is based on my review of available published data and company reports and

personal visits to the property. I have spent a total of 40 days working on the property and in the Lobo site office working with project geologists on the Archangel property. My visits were on the 3-4 May 2006, 9-10 & 14-17 May 2006, 24-28 May 2006, 26-30 August 2006, 19-31 October 2006, 26 March to 1 April 2007, and 13-14 August 2007. It is my professional opinion that the Archangel Property is of high merit and that further exploration of this property is warranted.

10. I have read N.I. 43-101 and Form 43-101F1. The Technical Report has been prepared in

compliance with both of these documents. 11. I, Bruce David Rohrlach, do not own or expect to receive any interest (direct, indirect or

contingent) in the properties described herein, nor in the securities of Mindoro Resources or any of their affiliates. I am independent of the issuer under all criteria of Section 1.5 of National Instrument 43-101.




12. 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, the omission to disclose which would make this report misleading.

13. I consent to the filing of the Technical Report with any stock exchange and other regulatory

authority and any publication by them for regulatory purposes. I consent to the filing of extracts from the technical report in the written disclosure which was filed on February 6th, 2008 (the press release). I also consent to the inclusion of parts of the Technical Report as electronic publication on the companies’ websites that are accessible to the public.

14. I have read the written disclosure filed on February 6th, 2008, and do not believe that there are any

misrepresentations. Signed in Melbourne, Victoria, Australia. Dated 12th February 2008

__________________________

Signature of Qualified Person

Bruce David Rohrlach B.Sc (Hons), PhD, M.AusIMM __________________________

Name of Qualified Person




CERTIFICATE OF QUALIFICATION

I, Dean Colin Fredericksen of 629 Huntly Road, Orange NSW, Australia, hereby certify that:

1. I am a Professional Geoscientist employed as a Principal consultant with Ravensgate mineral consultants ABN 92 492 598 860

3. I am responsible for the preparation of the technical report titled “Kay Tanda and Pulang Lupa

Mineral Resource Estimate” dated 5 December 2007. 3. I am a member in good standing of the Australian Institute of Mining and Metallurgy (AusIMM),

membership number 110937. 4. I am a graduate of the Waikato University, Hamilton New Zealand with a B.Sc. degree (1987) and

a Masters degree with Honours (1988) in geology.

5. I have practiced my profession continuously for the past 19 years. I have worked in the mining industry as a mine geologist in open pit and underground operations in New Zealand and Australia. For 12 years I have been in senior management positions and have been responsible for the preparation and reporting of Mineral Resource estimates as the JORC competent person. For the past 12 months I have been providing geological consulting services to mining companies in Australia, New Zealand and China.

7. I certify that by reason of my education, affiliation with a professional association (as defined in NI

43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. I am an independent qualified person as defined by N.I. 43-101 and by the companion policy 43-101CP to National Instrument 43-101.

8. This technical report is based on my review of available published data and company reports and a

single personal visit to the property. I visited the site office and project area during the period 18 – 21 December 2007. It is my professional opinion that the Archangel Property is of high merit and that further exploration of this property is warranted. .

10. I have read N.I. 43-101 and Form 43-101F1. The Mineral Resources section of the Technical

Report has been prepared in compliance with both of these documents and has followed standard industry practice.

11. I, Dean Colin Fredericksen, do not own or expect to receive any interest (direct, indirect or

contingent) in the properties described herein, nor in the securities of Mindoro Resources or any of their affiliates. I am independent of the issuer under all criteria of Section 1.5 of National Instrument 43-101.

12. 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, the omission to disclose which would make this report misleading.

13. I consent to the filing of the Technical Report with any stock exchange and other regulatory

authority and any publication by them for regulatory purposes. I consent to the filing of extracts from the technical report in the written disclosure which was filed on February 6th, 2008 (the press release). I also consent to the inclusion of parts of the Technical Report as electronic publication on the companies’ websites that are accessible to the public.

14. I have read the written disclosure filed on February 6th, 2008, and do not believe that there are any

misrepresentations.




Signed in Orange, NSW, Australia. Dated 12th February 2008

__________________________

Signature of Qualified Person

Dean Colin Fredericksen, M.AusIMM __________________________

Name of Qualified Person




25. ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON

DEVELOPMENT PROPERTIES & PRODUCTION PROPERTIES

The Archangel property (MPSA 177-2002-IV) is not a development property, nor is it a property which

is under mineral production. Thus no further information is furnished here.

26. ILLUSTRATIONS

All figures of relevance to this report have been inserted into the relevant sections above.

APPENDIX 1

Selected Kay Tanda and Pulang Lupa

Cross-Sections

+

≥

=

=

=

=

=

≥

=

+

+

+ +

+

==

=

∨

∠

=

+

+

=

+

=

+

∨

∨

=

=

=

∠

∠

=

≥

∨

=+

+

+

=

+

+ ++

≥

=

≥

∨

>• ∨

∨

>•

>

∨_

>•

>•≥

>•∨

•

∨_

≥ ≥

≥

=

+

≥

•

∨_

∨_

>

>•

Plan No.:

Fig.

ARCHANGEL PROJECTMRL GOLD PHILS., INC.

Kay Tanda Prospect

Drafted By: FMS, JBM, AOS, PDV

9700E

PL-02

PL-05 PL-06

9600E

Approved By: Checked By: FTL, IAF

Geologic Section and Mineralized Zone @ 0.10 g/t cutoff

Line 9,300N

Date: 08June2007

100

173

100

60

Compiled By: JCL, JSR, FAJ, NJM, MEA

∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠

≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥ Dacitic ash-lapilli tuff

Dacitic lithic tuff

Porphyritic dacite flows

v Multi-facies diorite

Quartz diorite

50m

50m

9900E9800E

∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀ Andesitic flows

=================================================

_________________________________________________ _________________________________________________

∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀

Shear Zone

181.8

152

70

95

Hydrothermal breccia

Andesitic ash-lapilli tuff

v

=================================================•••••••••••••••••••••••••••••••••••••••••••••••••>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠

≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>•••••••••••••••••••••••••••••••••••••••••••••••••

Andesitic ash tuff (younger)

Young porphyritic hornblende andesite flow

λλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλ

∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨

LITHOLOGY

∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨

ΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔ

ΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓ ΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓ


Andesitic lithic tuff (younger)

Porphyritic andesite flow


∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨

Dacite porphyry

∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨

250

9300E

PL-13PL-07 PL-04

9400E 9500E

PLDH-02

100

275

175

150

125

PL-39

200

225

300m ASL

Mineralized intercept (0.30 - 0.99 g/t Au)


Mineralized intercept ( > 1.0 g/t Au)

Mineralized zone

Drillhole number

Drillhole collar

End of holeTotal depth

KT-07)

166

∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠ ∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠

Date: 08June2007


Line 9,350N

111

50m

50m

9900E9800E


Kay Tanda Prospect

Plan No.:

Fig.



Approved By:

9700E9600E

PL-37

PL-23 PL-24PL-31

Checked By: FTL, IAFShear Zone

Multi-facies diorite

Quartz diorite

Dacitic ash-lapilli tuff

Dacitic lithic tuff

Andesitic flows

=================================================

∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠ ∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠

Porphyritic dacite flows=================================================

vv

≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥

∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀

≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥Andesitic ash tuff (younger)



Dacite porphyry

∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀

70

70

82

60

75

5170

PLDH-01PL-30

PL-40

PL-32

Andesitic ash-lapilli tuff•••••••••••••••••••••••••••••••••••••••••••••••••>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Porphyritic andesite flow∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨

PL-17

PL-16

PL-22


9400E 9500E

60

7550

LITHOLOGY

∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨

∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨ ∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨_________________________________________________ _________________________________________________

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>•••••••••••••••••••••••••••••••••••••••••••••••••

ΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔ



Mineralized intercept ( >1.0 g/t Au)




250

300m ASL

9300E

125

200

225

100

275

175

150

Drillhole number

Drillhole collar


Mineralized zone

KT-07)

166

=

= =

=

==

≥

≥ ≥

==

+

=

∠≥

∠

=

=

+ +

=

+

+

+

+

+

≥

∠

∠ =

=

+ +

∠

∠

∠

=

∠

∠

∠

=

==

50m

50m

Date: 08June2007



Kay Tanda Prospect

Plan No.:

Fig.


9600E

PL-26

PL-08

9900E9800E9700E

148

Checked By: FTL, IAF

46

180

91.9

96

60



Quartz diorite

≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥ Dacitic ash-lapilli tuff

Dacitic lithic tuff

∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀ Andesitic flows

Approved By:

PL-33PL-01

CA-12

Geologic Section andMineralized Zone @ 0.10 g/t cutoff

Line 9,400N

Mineralized Zone

148

PL-27

PL-36

=================================================

LITHOLOGY

Dacite porphyry

∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨ ∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨_________________________________________________ _________________________________________________

∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀

Shear Zone

PL-09


•••••••••••••••••••••••••••••••••••••••••••••••••>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠ ∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠

≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>•••••••••••••••••••••••••••••••••••••••••••••••••




ΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔ Hydrothermal breccia

∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨





Porphyritic andesite flow∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨

=================================================

v v

148

180

148

64.5

PL-10

CA-11

166

Drillhole number


Drillhole collar

KT-07)

End of hole

Mineralized intercept ( 0.10 - 0.29 g/t Au)


Total depth

PL-03

120

125

9300E 9400E 9500E

PL-29

200

225

100

300m ASL

275

175

150

250

+

=

+

+

≥

=

=

=

=

+

+

+

+

∠

≥

=

≥

≥

=

= =

+

+

+

+

∠

+

+

∠

∠

∠

=

=

+

+

++

=

+

+

+

+

_ ∨_

∠

+

+

+

∨

∨_

∠

+ + =

Geologic Section andMineralized Zone @ 0.10 g/t cutoff

Line 9,750N

KT-34

10100E 10200E

KT-76

KT-74

KT-69KT-09

Plan No.:

ARCHANGEL PROJECT

Fig.

MRL GOLD PHILS., INC.


50m

50m

CA-02



80

Approved By:

110

KT-18

Kay Tanda Prospect

Date: 08June2007

10000E

CA-09

159120

64

124


141

211.9

9900E

Hydrothermal brecciaΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔ

Shear Zone

76

225

80

58

181

275


Quartz diorite




=================================================

∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠ ∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠ Dacitic lithic tuff

=================================================

KT-14

116

104

140

KTDH-07KT-75

••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥ ≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

v

∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨ ∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨

∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀ ∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀ Andesitic flows



Dacite porphyry

Sandstone/ siltstones/ mudstones/ shales

Limestone

KT-19KT-28

KT-30

KT-102

_________________________________________________

LITHOLOGY

∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨ ∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨_________________________________________________

))))))))))))))))))))))))))))))))))))))))))))))))) ))))))))))))))))))))))))))))))))))))))))))))))))) Conglomerates


ΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓΓ

∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼ ∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼



Young porphyritic hornblende andesite flowDrillhole numberKT-07

v

Mineralized intercept ( >1.0 g/t Au)


Drillhole collar


Mineralized zone

End of holeTotal depth166

)

9700E9600E

300m ASL

200

175

150

250

125

KT-51

KT-62

133

160

KT-81

9800E

100

+

+ +

+

+

+

+

Δ

Δ

=

∨∨

∨

Δ

Δ

Δ∨

Δ

Δ

∨

+

Δ

Δ

+

+

≥

+

= =

+

+ +

∨

=

∀

∨

∨

Δ

Δ >⋅ >⋅

>⋅

=

≥

Δ

>

∨_

=∀

•

∠

+

+

+

≥

∠

≥

>

≥

>

=•

•

Δ+

=

+

+

=

∠

Δ

>

∠ Δ Δ

Δ

Δ

•

+

+

+

=

==

++

=

=

=

=

=

≥

==

=

=

≥

=

∨∨ΓΓ

∨

Ο ΟΟ

=

≥

≥

++

=

≥

Ο

Ο Ο

Ο

Ο Ο Ο

ΓΟ Ο Ο

≥

≥

≥

∨

Ο Ο Ο Ο

Ο Ο Ο

Ο Ο Ο Ο

ΟΓ Γ

Γ

λ λ ∨

ΟΟ

Ο

Ο

λ

Ο

=

≥

=

≥= =

≥

∨∨

178

85 83

10100E 10200E

Drafted By: FMS, JBM, AOS, PDV Fig.Approved By:

Plan No.:

146

Kay Tanda Prospect



120

Compiled By: FTL, JCL, JSR, FAJ, NJM, MEA

Date: 08June2007

50m

Dacitic lithic tuff


10000E



Quartz diorite

∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠

≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥

50m

138

87

187

9900E9800E

Total depth

Shear Zone


∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠

≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>•••••••••••••••••••••••••••••••••••••••••••••••••






187

142.9

166

Drillhole number

180

146

200

151

178

165

9600E

103

100

175

150

125

83

Dacite porphyry

v

=================================================



∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀ ∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀ Andesitic flows

=================================================


Line 9,800N

KT-20 KT-12KT-16

KT-61

KT-02

KT-03 KT-105

KTDH-02

KT-29

KT-01

9700E

KT-04

KT-13 KT-80

KT-99 KT-106

_________________________________________________

LITHOLOGY

∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨ ∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨_________________________________________________



•••••••••••••••••••••••••••••••••••••••••••••••••>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨



∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨Mineralized intercept ( > 1.0 g/t Au)

KTDH-03

KT-44

KT-103

275

300m ASL

250

225

200

Mineralized Zone

Drillhole collar

End of hole

KT-07)

∨∨

∨

∨

ΔΔ

ΔΔ

+

+

+

+

•>

∨

∨

∨∨

∨ ∨

ΔΔ

∨∨

>

∠

• >•

∨_∨

∨

Δ

Δ

+

•

∨∠

>

∨

∨

∨_ _

>•

∠

+

∠

∨∠

_

∨_

>•

+ +

=

∠∠

=

∀

+

=>•=

+ ∀+

+

+

+

+

+

+

+

>>

>

•

•

•

=

=

+≥

∀

>∨

•

≥≥

=∨

≥

=

≥

+

Ο

>•

ΟΟ

=

∨ ∨

∨

ΟΟ

ΟΟ Ο

>•λ

>•=∨ ∨

≥

≥∀

>

λλ

∨_

λ

Ο

≥

≥∨

•

λ

∨

>>

•

•

∨_ ∨_

10100E

KT-63

10000E 10200E


Approved By:



Line 9,850N

Date: 08June2007

Kay Tanda Prospect


Plan No.:

Fig.


50m

50m

284.6

CA-04

KT-42

126

100

70

130

184

75

KT-43 KT-46KT-45KT-48

KT-41

9900E

KTDH-12KTDH-10

181



Andesitic flows

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>••••••••••••••••••••••••••••••••••••••••••••••••• Andesitic ash-lapilli tuff

∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨ Porphyritic andesite flow∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨


∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀

•••••••••••••••••••••••••••••••••••••••••••••••••

=================================================

∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠ ∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠

≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥ ≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥

Dacitic lithic tuff

∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀

=================================================

Quartz diorite

v


ConglomeratesSandstone/ siltstones/ mudstones/ shales




Dacite porphyry

Limestone

Shear Zone

LITHOLOGY

)))))))))))))))))))))))))))))))))))))))))))))))))

∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨_________________________________________________

∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼


∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨_________________________________________________

)))))))))))))))))))))))))))))))))))))))))))))))))

∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼




140

160

181

90

519.3

505.1

9800E9700E

KT-50KT-39

KT-47

Mineralized intercept (> 1.0 g/t Au)

End of hole

Mineralized Zone


Total depth


)

166

Drillhole number

Drillhole collar

KT-07

KT-55

9600E

KTDH-09

9500E

100

150

250

125

225

9400E9300E9200E

175

200

300m ASL

275

50

75

∇

∇ ∇

⋅

∨

∨

>

∨

>

∨

⋅

∨

∨

∇∇

∨

∇

≥

≥

∨

∨

>⋅

>⋅>⋅

>⋅

λ

∨

∨>⋅>⋅

∨

++

∨∨

>⋅

==∨__

λ

=

= ≥

+

=

+ +

+

+

+

≥

=

∨

> >⋅ ⋅

>⋅>⋅>⋅

=

=

++

≥>

≥⋅

=

=

+

≥

∨

>⋅

>⋅

≥

++

+

+

>⋅

∨

≥

λ

λ

>

λ

⋅λ

λ

∨

Γ

Γ

Γ

Γ

λ

Γλ Γ

∨

+

++

≥

++

λλ

λ

)

Γ Γ

ΓΓ

Γ

Γ

∨

Γ

)

)

ΓΓ

λ

λ

Γ

Γ

Γ

∨

Γ

∨>•

∨

)) )

∨

+

∨

∨

λ

_

∨_

∨_∨_

λ

∨ ∨

)

)

∨_

))

))

) ))

)

))

)

)

)

))

)

λ λ

_

ΓΓ

))

λΓ

∨

∨ ∨ ∨

) )

λ

λλ

Γλ

ΓΓΓ

Γ

•

>

>

∨ ∨

∨

>• •

=

)

)

)

∨

∨

_

_

∨_

∨_

∨_

)

)

∨

∨

∨ ∨

=

+

+ +

+

+

+ +

+

+

+

KT-78

KT-23

KT-08KT-07

Approved By:



Compiled By: JSR

KT-10KT-77

10000E

50m

50m

10100E

Fig.

10200E9900E

Kay Tanda Prospect

Checked By: JSR

Plan No.:

CA-07

9800E9700E

Date: 08June2007

Geologic Section and Mineralized Zone @ 0.10 Au g/t cutoff

Line 9,900N

98


Quartz diorite


Dacitic lithic tuff

Andesitic ash-lapilli tuffPorphyritic andesite flow

Andesitic flows

120

140

130

KT-68 KT-22KTDH-01

163

147

213

239.4

∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨

•••••••••••••••••••••••••••••••••••••••••••••••••vv

•••••••••••••••••••••••••••••••••••••••••••••••••>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨

∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠ ∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠

≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥ ≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥

∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀ ∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀



Andesitic ash tuff (younger)λλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλ




Dacite porphyry

Conglomerates

Limestone

================================================= Porphyritic dacite flows

Hydrothermal brecciaΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔΔ

=================================================

Shear Zone

Total depth

∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼

LITHOLOGY

∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨ ∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨_________________________________________________ _________________________________________________

))))))))))))))))))))))))))))))))))))))))))))))))) )))))))))))))))))))))))))))))))))))))))))))))))))

∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼



Mineralized intercept (> 1.0 g/t Au)

KT-104

KTDH-15KTDH-17

Drillhole number

Drillhole collar

End of hole

KT-07)

166

93

120

1108085

99.7120

80

86

76

KT-79KT-59

KT-53KT-52 KT-06

KT-60

9600E

200

225

300m ASL

100

175

9500E

275

150

250

125

500.7

Mineralized zone

∠

+

+

+ +

∨∨

∨ ∨ ∨

∨

+

∨

∨

+

+

∠ ∨

∨

_

_

∨ ∨>• >•

>•

>•

++

+

+

+

∠

+

+ +

∠

∠∠

∨ ∨=

∠∠

∨ ∨

∨∨

∨

∠

∠

∠

Γ

+

+

+ +

+

Γ

λλ Γ

Γ

Γ

+

∨

∨∨ +

∨∨

∨

+

+ +

+ ++

+

∨

∨ +

λ

ΓΓ

∨

Γ

+ +

Γ

λ ∨_λ

Γ

λ

λ

∨_

Γλ

ΓΓ

Γ

Γ

λ

λ

λ

λ

λ

λΓ

λ

Γ

Γ

Γ

∨

Γ

Γ

∨Γ

∨

+

∨∨

+

++

+

∨

∨

∨

Γ

λλ

λ

λ

λ

Γ

λ

Γ

Γλ

λ

Γ

λ

Γλ λ

>•∨

λ λ>•

λλ

Γ

λ

∨

∨

∨

∨ ∨

∨

=

∨∨

∨• >

>•• >

==

=

==

=


Kay Tanda Prospect

50m

50m

Fig.


Approved By:

Plan No.:Compiled By: JCL, JSR, FAJ, NJM, MEA


Geologic Section andMineralized Zone @ 0.10 Au g/t cutoff

Line 10,100N

Drafted By: FMS, JBM, AOS, PDV Date: 08June2007

278.1

)

122

))


Quartz diorite



Dacitic lithic tuff



Andesitic flows

10200E10100N

KT-54

)

)

Limestone∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼ ∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼

303.7


Mineralized Zone

78

KT-56

10000N9900N

KTDH-08KT-57

82

319

KTDH-05 KTDH-06


Shear Zone

∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨ ∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨_________________________________________________ _________________________________________________

∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀ ∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀

=================================================

))))))))))))))))))))))))))))))))))))))))))))))))) ))))))))))))))))))))))))))))))))))))))))))))))))) Conglomerates

≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>•••••••••••••••••••••••••••••••••••••••••••••••••




Dacite porphyry


∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨

LITHOLOGY


∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨





)

)

))

KT-97

KT-100

KT-83)

60

)

KT-94

92

100

KT-82

89

203.2

177

150

9800N9700E9600E

275

250

300m ASL

175

125

225

200

KTDH-04

99

≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>Mineralized intercept ( 0.10 - 0.29 g/t Au)

vv

=================================================

•••••••••••••••••••••••••••••••••••••••••••••••••

∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠ ∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠

)


Mineralized intercept ( > 0.10 - 0.29 g/t Au)

Mineralized intercept ( > 0.30 Cu g/t)


166

Drillhole number

Drillhole collarKT-07

∨∨

∨

∨

∠∠

∠∨

∨

∨

∨

∨∨

>

∨∨

>••

>•

∠

∠

∠

∨

∨_

∨

∨

∨

_∨

==

=

∠

∨

∨

∨

=

∠

∠≥

∠

≥

==

∠

≥

≥

≥

∠

≥

∠

≥

∠

≥

≥

∠

∠

∠

≥

≥

∠

∠

∠

∠

≥

≥

∠

∠∠

≥

∠

∠

≥

44

∠

4

4

4

>•

= =

∨∠

∠∠

∠

≥

∠

≥

≥ ≥

∠∠

∠

≥

≥

≥

∠

∠

∠

∨∨>•

∠

>•

≥

∠

≥

≥

∨

∠

∠

∠

≥

≥

∠

∠

>

>•

∠

∠

∠

∠

∠

λλ

>•

•

∠

=

∠

∠

>•

∠

∨

λ

_

∨_

λ

∨

>•

=∠

λ

λ

∨_

>•

∠

∠

λ

λ

∨∨_ _

λ • >

λ

λ

∨

λ

λ

_

λ

λ

Geologic Section andMineralized Zone @ 0.10 Au g/t cutoff

Line 10,200NPlan No.:

Fig.Approved By:

MRL GOLD PHILS., INC.

Date: 08June2007Drafted By: FMS, JBM, AOS, PDV


Kay Tanda ProspectARCHANGEL PROJECT

10000E 10200E

50m

50m

148

116


KT-87

KT-65

114

KT-89

120

100

KT-84

KT-91 KT-86


Andesitic ash-lapilli tuffPorphyritic andesite flow


Dacitic lithic tuff

∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀


Quartz diorite

•••••••••••••••••••••••••••••••••••••••••••••••••>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥

Andesitic flows

EOH 519..30m

=================================================

∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠ ∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠∠

=================================================

≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥≥

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>•••••••••••••••••••••••••••••••••••••••••••••••••

∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀∀

v

KT-85

100

KT-90

100

Conglomerates∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨ ∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨Sandstone/ siltstones/ mudstones/ shales


LITHOLOGY

∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨ ∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨∨_________________________________________________ _________________________________________________




Limestone

Dacite porphyry




Shear Zone

λλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλ λλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλλ

∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼ ∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼

Mineralized intercept (0.30 - 0.99 g/t Au)))))))))))))))))))))))))))))))))))))))))))))))))) )))))))))))))))))))))))))))))))))))))))))))))))))

166




Mineralized Zone

EOH 519..30mEOH 519..30m

10100E

72

9800E9700E 9900E

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225

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175

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150

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APPENDIX 2

Photographs of Drilling Operations

at Kay Tanda

Lobo office Carpentry workshop for manufacturing of core boxes

Core splitting at Lobo office Drillhole collar at Pulang Lupa

RC drilling at Kay Tanda Operation of cyclone at Kay Tanda

Weighing of RC sample for recovery calculation. Recording of RC sample recovery data.

Splitting of RC samples. Spear sampling of RC chips for washing and logging

Preliminary logging of RC chips. Samples of RC chips from hole KTRC-80

APPENDIX 3

Photographs of Lobo Core and RC Sample Storage Facility

MRL Core Storage Facility at Lobo (Shed-2)



MRL Core Logging Area at the Lobo Office

MRL Percussion Sample Storage (Lobo)

MRL Percussion Sample Storage (Lobo)

Labels on Diamond Core Boxes – (Hole KTDH-10)

Labels on Diamond Core Boxes – (Holes KTDH-21 and KTDH-23)

APPENDIX 4

Photographs of McPhar Laboratory Facilities (Manila)

APPENDIX 5

Certificates of Analytical Standards Used by MRL

APPENDIX 6

QaQc Data Verification and

Repeat Sampling of Chase Drill-holes (S.Carty 2005)

QAQC Data Verification and Repeat Sampling of RC samples, Archangel Project, Batangas, Philippines, February, 2005 1

12 Telstar St

Dona Vicenta Village

Davao City

Philippines

Feb 08 2005

Mr. Tony Climie

Mindoro Resources

S & L Bldg,

Roxas Blvd, Manila

Philippines

Dear Tony,

Please find attached my report on QAQC data verification and re-sampling of RC samples at Mindoro

Resources’ Archangel project in Batangas.

Yours sincerely,

Stephen Carty, MAusIMM

Consultant Geologist


QAQC Data Verification

and

Repeat Sampling of RC samples

Archangel Project

Batangas

Philippines

Stephen Carty, MAusIMM

Consultant Geologist

February, 2005


INTRODUCTION

Mr. Tony Climie, Managing Director of Mindoro Resources requested the author to conduct a

verification of the QAQC controls used during assaying of WMC’s 1989/90 diamond drillcore samples

and Chase Minerals’ 1997 RC samples, both from the Archangel project in Batangas, Philippines.

Following a meeting with the McPhar Laboratory’ Chief Chemist, the author recommended and was

given approval to conduct repeat sampling of Chase’s original RC samples, most of which are still

available on site.

This report details the QAQC information obtained from McPhar’s Chief Chemist, Mr. Art Del Mundo

on the QAQC controls during 1997, and the repeat sampling undertaken in January 2005 to confirm the

accuracy of the 1997 assaying.

QAQC CONTROLS

The author and Mr. Edsel Abrasaldo visited the McPhar laboratory on Jan 10, met with Mr. Del Mundo

and discussed McPhar’s QAQC controls in 1989/90, 1996/97 and at present.

MCPHAR’S INTERNAL QAQC CONTROLS IN 1996/97

Sample preparation

Silica sand rinse before and after grinding of every sample

Assaying

Standard procedure for each batch of 30 samples submitted for fire assay included:

McPhar Internal Standards (Reference Material) : 1

Replicate assays: 2

Reagent blank 1

Certified Reference material: irregular

Unfortunately, all of the original work sheets from the 1989/90 WMC and 1997 Chase sample batches

which contained details of which specific internal and external standards were inserted in the WMC and

Chase sample batches and what the results were obtained for those standards, have already been

discarded, so the only external reference that can be used to assess McPhar’s accuracy around the time

the Chase samples were submitted is a mid-1996 comparison (Table 1) between McPhar’s assay results

and assay results for the same samples sent by McPhar to ACME in Vancouver, Canada and Analabs in

Perth, Australia.

McPhar 2005 QAQC controls

In addition to the QAQC controls (standards, blanks and duplicates) submitted along with the repeat

samples, McPhar’s own internal QAQC controls in 2005 on samples submitted for sample preparation

and fire assay include:

1. Silica rinse before grinding of all samples

2. Minimum of 2 replicate assays for each batch of 26 regular samples

3. Minimum of 1 reagent blank

4. Minimum of 1 internal McPhar standard

5. Minimum of 1 CRM per 50 regular samples


McPhar also participates in the twice yearly Geostats round robin surveys and has since 2002

consistently returned results making it within the top 5-20 out of the 100 participating laboratories

REPEAT SAMPLING

Chase RC samples

In recognition of the paucity of credible QAQC data for the WMC and the Chase assay data, the author

recommended that repeat sampling be conducted of any available Chase RC sample intervals and WMC

drillcore which assayed more than 0.5ppm Au, and that external certified reference material, alias

external standards, that blanks be inserted, and that pulp duplicates be submitted, along with a CRM

sample, to another laboratory for comparison with McPhar’s results

Mindoro approved the recommended programme so the author traveled to site on the afternoon of Jan

11. On January 12, after allocating sample numbers to the … samples selected for repeat sampling and

assaying and to the standards, blanks and duplicates to be inserted and submitted along the RC samples,

the author visited the location of drillhole CA-5 and collected 6 samples selected for repeat sampling

and assaying.

The sample material was clay rich, quite moist and still in the original sample bags used by Chase in

1997 with the original sample numbers still legible, so the 6 selected samples were removed to the

project exploration camp and there mixed, quartered, mixed, and requartered manually to give a 1kg

sample for submission to the laboratory

This procedure was repeated on 76 samples in 8 holes, see Table 5 for details of repeat samples in each

hole, the standards and blanks inserted along with the RC samples and the pulp duplicates sent to

another assay laboratory for comparison purposes.

Certified Reference Material (‘Standards’)

To minimize delays, three of McPhar’s available Rocklab Certified Reference Material (CRM)

‘standards’ were selected by the author on the basis of their assay values and all being oxide rather than

sulfide material.

The three CRM’s selected were:

OXA-26 0.798ppm Au for repeat sample/s 7270, 7306

OXE-20 0.548ppm Au for repeat sample/s 7255, 7318

OXH-29 1.298ppm Au for repeat sample 7328

The CRM material was collected from McPhar and then re-bagged and renumbered using the allocated

numbers so that the specific CRM used would be blind to the McPhar assayer. 100g of CRM was

submitted for each ‘standard’ sample to allow for any possible 50g fire re-assays

Blanks

Despite McPhar’s use of silica rinse between each sample during grinding, five (5) 1kg limestone

blanks were inserted at a frequency of approximately 1 per 20 normal samples to check for any

contamination, usually after one of the ’higher’ grade samples

Sample Blanks: 7251, 7264, 7277, 7296, 7334


Duplicates

For pulp duplicates, 6 empty pre-numbered bags were submitted along with the samples with the

instruction that for each of the nominated samples to be duplicated, McPhar should make a 100 split of

the pulped sample and place that split into the pre-numbered sample bag and return the duplicates to

Mindoro, for submission to Intertek assay laboratory, along with one CRM.

Pulp duplicates : 7257 is duplicate of 7256

7291 is duplicate of 7290





WMC 1989/90 Drillcore

The author inspected the WMC drillcore but unfortunately found it to be in very poor condition, with a

lack of reliable in-situ depth markers or core blocks on which to base a repeat sampling exercise. It was

decided that, even with insertion of QAQC standards, blanks and duplicates, any assay values returned

from re-sampling of the drill core would not be any more credible than the original assay values.

Also, the three diamond drillholes , ARD-4A, ARD-4B and ARD-6, all have RC drillholes close by, so

the repeat sampling of the RC holes should also suffice as a test of the reliability and continuity of the

1989/90 drill core assays

The author worked as an exploration geologist with WMC in the Philippines between 1991 and 1994

and used McPhar assay laboratory on a regular basis. No problems were encountered with McPhar’s

assay repeatability and accuracy performance in that period, during which annual audits were conducted

by WMC.


Table 1

COMPARATIVE ANALYTICAL RESULTS (March - April 1996)

Au,GM/T

SAMPLE NO. ACME McPHAR ANALABS

25 1.10 0.30 0.25

RE 25 0.33

26 1.30 0.85 0.54

27 1.47 1.45 1.08

28 0.14 0.23 0.15

29 0.21 0.16 0.16

30 0.10 0.16 0.15

31 0.34 0.35 0.33

32 0.41 0.57 0.65

33 0.54 0.72 0.41

34 3.50 3.15 1.62

RE 34 2.96

35 0.75 0.85 0.72

36 0.55 0.67 0.65

RE 36 0.55 0.67

37 1.82 1.7 1.87

38 1.99 1.76 2.11

39 0.99 1.43 1.09

RE 39 1.71

40 0.44 0.54 0.43

RE 40 0.56

41

42 0.20 0.22 0.30

43 0.24 0.32 0.24


Table 2 All Data Inter-Laboratory Proficiency Testing

Gold – January 1998 Series.

LABORATORIES McPhar

Internal

Standards MCPHAR ACME ANALAB

WPMGM-1 0.40 0.43 0.38

WPMGM-2 1.10 1.50 0.90

WPMGM-3 0.04 0.04 0.04

WPMGM-4 1.36 1.45 1.30

WPMGM-5 6.27 10.26 5.99

WPMGM-6 2.58 2.80 2.52

WPMGM-7 0.49 0.41 0.47

WPMGM-8 0.72 0.80 0.76

WPMGM-9 0.28 0.29 0.35

WPMGM-10 1.13 1.24 1.06

WXMGM-11 0.07 0.08 0.07

WXMGM-12 2.21 2.47 2.18

WXMGM-13 2.10 2.10 2.09

WXMGM-14 0.71 0.60 0.69

WXMGM-15 <.10 0.12 0.11

WXMGM-16 2.40 2.62 2.53

WXMGM-17 0.40 0.33 0.33

WXMGM-18 1.14 1.07 1.00

WXMGM-19 1.96 1.93 1.82

WXMGM-20 1.66 1.67 1.60

MGTB-1 11.30 12.20 11.22

MGTB-2 0.12 0.11 0.08

MGTB-3 0.42 0.53 0.63

MGTB-4 0.44 0.41 0.46

MGTB-5 0.92 0.45 0.51

MGTB-6 1.89 1.82 1.48

MGTB-7 13.08 16.88 15.04

MGTB-8 0.86 0.96 1.45

MGTB-10 3.00 3.47 3.29


Table 3 - LABORATORY PROFICIENCY TEST DECEMBER 2000

COMPARISON OF GOLD ASSAY RESULTS

SAMPLE ID McPHAR ANALABS ACME Mc - ANA Mc - ACME ANA - ACME GEOSTAT

A2G 0.30 0.30 0.30 0.00 0.00 0.00

B-2 0.20 0.22 0.18 -0.02 0.02 0.04

GF-3 1.76 1.71 1.72 0.05 0.04 -0.01 1.68

GF-5 3.04 3.05 3.17 -0.01 -0.13 -0.12 3.05

GF-6 5.91 5.70 5.62 0.21 0.29 0.08 5.60

GF-7 13.00 5.25 12.75 7.75** 0.25 -7.50 13.20

KKH 3.16 2.60 3.04 0.56 0.12 -0.44

PF 0.72 0.71 0.76 0.01 -0.04 -0.05

15538 2.02 2.60 2.11 -0.58 -0.09 0.49

15626 0.86 0.74 0.69 0.12 0.17 0.05

17073 0.58 0.59 0.69 -0.01 -0.11 -0.10

17311 1.34 1.10 1.30 0.24 0.03 -0.20

17483 0.30 1.24 0.28 -0.94 0.02 0.96

17569 3.12 2.95 3.37 0.17 -0.25 -0.42

17796 1.59 1.65 1.87 -0.06 -0.28 -0.22

17902 7.18 7.15 11.10 0.03 -3.92 -3.95

17907 15.16 15.00 14.55 0.16 0.61 0.45

18022 4.10 4.60 2.92 -0.50 1.18 1.68

18054 0.94 0.87 0.86 0.07 0.08 0.01

18058 6.02 5.75 6.77 0.27 -0.75 -1.02

18154 2.58 2.30 2.54 0.28 0.04 -0.24

STD AU-1 3.62

AVERAGE 0.0022 0.0603 -0.4510

NOTE: ** VALUE IS CONSIDERED OUTLIER AND WAS NOT INCLUDED

IN THE COMPUTATION OF THE AVERAGE.


Table 5 - Repeat Sampling

Drillhole # From To1997

Sample

#

1997

Assay valueppm Au

2005

Repeat

Sample

Assay value

ppm Au

2005

Sample

#

Comments

CA-1 - - - - 0.005 7251 Blank

16 18 4008 0.62 0.285 7252

18 20 4009 0.85 0.085 7253

20 22 4010 0.52 0.465 7254

- - - - 0.555 7255 Standard ( 0.548ppm Au )

24 26 4012 0.22 0.180 7256

- - - - 7257 Pulp dup of 7256

26 28 4013 0.46 0.445 7258

28 30 4014 0.52 0.500 7259

30 32 4015 0.55 0.455 7260

CA-2 54 56 4087 0.36 0.580 7261

60 62 4090 0.98 0.325 7262

70 72 4095 6.83 3.42 7263

- - - - 0.005 7264 Blank

CA-3 0 2 4120 0.60 0.525 7265

2 4 4121 0.54 0.515 7266

4 6 4122 0.28 0.210 7267

6 8 4123 0.40 0.400 7268

8 10 4124 0.54 0.570 7269

- - - - 0.080 7270 Standard ( 0.0798ppm Au )

10 12 4125 0.84 0.910 7271

12 14 4126 0.62 0.675 7272

14 16 4127 0.32 0.380 7273

16 18 4128 0.16 0.125 7274

18 20 4129 0.20 0.150 7275

20 22 4130 0.48 0.510 7276

- - - - 0.005 7277 Blank

28 30 4134 0.88 0.815 7278

30 32 4135 0.98 0.885 7279

32 34 4136 0.94 0.920 7280

34 36 4137 0.66 0.655 7281

36 38 4138 0.56 0.545 7282

38 40 4139 0.58 0.400 7283

40 42 4140 0.40 0.395 7284

42 44 4141 0.42 0.375 7285

44 46 4142 0.71 0.640 7286

46 48 4143 0.73 0.730 7287

48 50 4144 0.68 0.600 7288

54 56 4147 0.87 0.785 7289

56 58 4148 0.90 0.890 7290

- - - - 7291 Pulp dup of 7290

58 60 4149 0.60 0.540 7292

112 114 4176 2.01 1.555 7293

- - - - 7294 Pulp dup of 7293

114 116 4177 1.33 1.125 7295


Drillhole # From To1997

Sample

#

1997

Assay value

2005

Repeat

Sample

Assay Value

2005

Sample

#

Comments

CA-4 - - - - 0.005 7296 Blank

62 64 4211 0.6 0.570 7297

64 66 4212 0.44 0.425 7298

66 68 4213 0.54 0.485 7299

68 70