43-101 2008 Technical Report On The La Fortuna Project, Durango ...

14.2.2 Cut-off Grade .................................................................................................................... 41
14.2.3 Results............................................................................................................................... 41
14.2.4 Pit Optimization Parameters.............................................................................................. 43
14.2.5 Results............................................................................................................................... 43
14.2.6 Mine Plan and Schedule.................................................................................................... 46
14.2.7 Comparison Between Howe 2003 and Howe 2008 Reserve Estimates ............................ 46
15.0 OTHER RELEVANT DATA AND INFORMATION.................................................................48
15.1 ENVIRONMENTAL CONSIDERATIONS .............................................................................48
15.2 Environmental Permitting..........................................................................................................48
15.2.1 Resolution on Environmental Impact ..................................................................................... 48
15.2.2 Change of Land Use ............................................................................................................... 49
15.3 Closure and Rehabilitation Plans ...............................................................................................49
16.0 ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT
PROPERTIES AND PRODUCTION PROPERTIES ...........................................................................50
16.1 EARLIER PROPOSED MINING PLANS................................................................................50
16.1.1 Open Pit Parameters.......................................................................................................... 50
16.2 FINANCIAL EVALUATION ...................................................................................................50
16.2.1 Capital and Operating Cost Estimates............................................................................... 51
16.2.2 Economic Evaluation ........................................................................................................ 60
17.0 INTERPRETATIONS AND CONCLUSIONS.............................................................................63
17.1 CONCLUSIONS........................................................................................................................63
17.2 RECOMMENDATIONS...........................................................................................................63
18.0 SOURCES OF INFORMATION.....................................................................................................65
19.0 CERTIFICATES OF AUTHORS...................................................................................................67
FIGURES
Figure 1. El Castillo Project location map.....................................................................................................8
Figure 2. Map showing mining concessions and surface leases....................................................................9
Figure 3. Generalized geologic map of the El Castillo Property.................................................................18
Figure 4. Cross-section through the El Castillo area...................................................................................19
Figure 5. Diagram of the geologic environment for epithermal deposits....................................................20
Figure 6. Coarse blank standard control chart.............................................................................................31
Figure 7. Cumulative gold recovery versus leaching time (source: KCA; taken from Koningen, 2006). ..38
PLATES
Plate 1. Photograph of the El Castillo area, showing topography, vegetation and current open-pit bench
development as of December 2007 (looking south)......................................................................14
Plate 2. Mineralized thinly-bedded volcaniclastic rocks.............................................................................22
Plate 3. Mineralized fractures in dacite porphyry. ......................................................................................23
Plate 4. Chalcedonic silica cutting altered volcaniclastic rocks. .................................................................24
Plate 5. Test pit #1.......................................................................................................................................34
Plate 6. View of the El Castillo site facilities..............................................................................................39
TABLES
Table 1. Castle Gold concession titles for the El Castillo Property. .............................................................7
Table 2. Surface rights under contract to Castle Gold.................................................................................10
Table 3. Mining taxes in Mexico as of January 1, 2006.............................................................................11
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