43-101 2008 Technical Report On The La Fortuna Project, Durango ...
43-101 2008 Technical Report On The La Fortuna Project, Durango ...
43-101 2008 Technical Report On The La Fortuna Project, Durango ...
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14.2.2 Cut-off Grade .................................................................................................................... 41<br />
14.2.3 Results............................................................................................................................... 41<br />
14.2.4 Pit Optimization Parameters.............................................................................................. <strong>43</strong><br />
14.2.5 Results............................................................................................................................... <strong>43</strong><br />
14.2.6 Mine Plan and Schedule.................................................................................................... 46<br />
14.2.7 Comparison Between Howe 2003 and Howe <strong>2008</strong> Reserve Estimates ............................ 46<br />
15.0 OTHER RELEVANT DATA AND INFORMATION.................................................................48<br />
15.1 ENVIRONMENTAL CONSIDERATIONS .............................................................................48<br />
15.2 Environmental Permitting..........................................................................................................48<br />
15.2.1 Resolution on Environmental Impact ..................................................................................... 48<br />
15.2.2 Change of <strong>La</strong>nd Use ............................................................................................................... 49<br />
15.3 Closure and Rehabilitation Plans ...............................................................................................49<br />
16.0 ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT<br />
PROPERTIES AND PRODUCTION PROPERTIES ...........................................................................50<br />
16.1 EARLIER PROPOSED MINING PLANS................................................................................50<br />
16.1.1 Open Pit Parameters.......................................................................................................... 50<br />
16.2 FINANCIAL EVALUATION ...................................................................................................50<br />
16.2.1 Capital and Operating Cost Estimates............................................................................... 51<br />
16.2.2 Economic Evaluation ........................................................................................................ 60<br />
17.0 INTERPRETATIONS AND CONCLUSIONS.............................................................................63<br />
17.1 CONCLUSIONS........................................................................................................................63<br />
17.2 RECOMMENDATIONS...........................................................................................................63<br />
18.0 SOURCES OF INFORMATION.....................................................................................................65<br />
19.0 CERTIFICATES OF AUTHORS...................................................................................................67<br />
FIGURES<br />
Figure 1. El Castillo <strong>Project</strong> location map.....................................................................................................8<br />
Figure 2. Map showing mining concessions and surface leases....................................................................9<br />
Figure 3. Generalized geologic map of the El Castillo Property.................................................................18<br />
Figure 4. Cross-section through the El Castillo area...................................................................................19<br />
Figure 5. Diagram of the geologic environment for epithermal deposits....................................................20<br />
Figure 6. Coarse blank standard control chart.............................................................................................31<br />
Figure 7. Cumulative gold recovery versus leaching time (source: KCA; taken from Koningen, 2006). ..38<br />
PLATES<br />
Plate 1. Photograph of the El Castillo area, showing topography, vegetation and current open-pit bench<br />
development as of December 2007 (looking south)......................................................................14<br />
Plate 2. Mineralized thinly-bedded volcaniclastic rocks.............................................................................22<br />
Plate 3. Mineralized fractures in dacite porphyry. ......................................................................................23<br />
Plate 4. Chalcedonic silica cutting altered volcaniclastic rocks. .................................................................24<br />
Plate 5. Test pit #1.......................................................................................................................................34<br />
Plate 6. View of the El Castillo site facilities..............................................................................................39<br />
TABLES<br />
Table 1. Castle Gold concession titles for the El Castillo Property. .............................................................7<br />
Table 2. Surface rights under contract to Castle Gold.................................................................................10<br />
Table 3. Mining taxes in Mexico as of January 1, 2006.............................................................................11<br />
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