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

More documents

Recommendations

Info

Effective Date: July 31, 2008 Report Number: 920 Client Reference: CASTLE GOLD CORPORATION. TECHNICAL REPORT ON THE EL CASTILLO GOLD PROJECT, DURANGO, MEXICO Authors: Daniel C. Leroux, B.Sc., P.Geo Vice President and Senior Geologist___________________________ Gordon Watts, P.Eng. Associate Consulting Mining Engineer_________________________ W.D. Roy, P.Eng. Associate Consulting Mining Engineer_______________________
SUMMARY Introduction At the request of Mr. Darren Koningen, Vice President Operations for Castle Gold Corporation (“Castle Gold”), A.C.A. Howe International Ltd, (“Howe”) has been retained to prepare an updated Technical Report (“the Report”) which evaluates the mineral reserves and resources of the El Castillo Property located in Durango, Mexico (“the Property”) as a result of changes in gold prices, further exploration, the impact of the project going into production, and proposed increased production rates (subsequent to the 2003 Howe report #850). This report incorporates the results of an updated NI 43-101 compliant mineral resource/ reserve estimate based on additional geoscientific and pre-production development work that has been completed at the El Castillo Project by Castle Gold. The new technical report is prepared according to the standards dictated by National Instrument 43-101 and Form 43-101F (Standards of Disclosure for Mineral Projects). Howe previously prepared two Pre- Feasibility Reports (Howe reports #845 and #850, dated September 2002 and January 2003 respectively) for the El Castillo project (“the Previous Howe Reports”) that was then known as the El Cairo project. In addition, and updated technical report was completed by Howe in 2006 (Howe report #897). Howe understands that Castle Gold will use this new report for reporting purposes. Property Location and History The El Castillo Project was a grass roots discovery that resulted from a regional exploration program initiated by Battle Mountain Gold in 1995 to explore for sub-one gram Au per tonne bulk tonnage targets. Stream sediment geochemical surveys conducted by Battle Mountain outlined a significant gold geochemical anomaly in the El Castillo area which led to a successful program of drilling that resulted in delineation of the El Castillo gold resource by Battle Mountain. Castle Gold acquired the Property in 2002. The Property is located in the State of Durango, Mexico approximately 100 km north of the city of Durango. Access to the property is good with total driving time from Durango City varying between 1.5 and 2.0 hours depending on traffic. The Property consists of four contiguous mining concessions totaling approximately 216.05 hectares (“Ha”). Castle Gold owns all four of these concessions outright. There is a 2.0% Net Smelter Royalty on one of the concessions but that concession is located to the east of the known mineralized area and is not presently known to contain mineralization. Castle Gold also controls 835 Ha of surface rights in the El Castillo area which is substantially larger than the area covered by Castle Gold’s mineral rights. Geology The Property lies within the Altiplano Subprovince of the Sierra Madre Occidental, a regionally extensive Eocene to Miocene volcanic field which extends southeast from the U.S-Mexico border into Central Mexico. The Sierra Madre Occidental is recognized as a gold-copper metallogenic province with potential for porphyry copper-gold mineralization and epithermal gold mineralization related to areas of Tertiary volcanic and subvolcanic intrusive activity. Gold mineralization on the Property is hosted by thinly-bedded volcaniclastic rocks of the Lower Volcanic Series and adjacent dacitic sills or dikes. The mineralized zones have locally been oxidized to depths greater than 200 m below surface but an average depth is more in the order of 150 m. Mineralization occurs in a series of northwest-trending lenses up to 150 m in length and 40 m in width. i
Page 1: TECHNICAL REPORT ON THE EL CASTILLO
Page 5 and 6: Castillo Remaining Mineral Resource
Page 7 and 8: Undiluted Reserves at $550 per Ounc
Page 9 and 10: epresent an incremental increase in
Page 11 and 12: TABLE OF CONTENTS 1.0 INTRODUCTION
Page 13 and 14: Table 4. Driving distances from Dur
Page 15 and 16: Castle Gold has accepted that the q
Page 17 and 18: 2.0 PROPERTY DESCRIPTION, LOCATION,
Page 19 and 20: Figure 2. Map showing mining conces
Page 21 and 22: 2.1.2.3 Property Taxes The property
Page 23 and 24: Table 5. Maximum precipitation in a
Page 25 and 26: 3.0 HISTORY The El Castillo Project
Page 27 and 28: commonly reach elevations of 2,500
Page 29 and 30: Figure 4. Cross-section through the
Page 31 and 32: At El Castillo, the presence of cha
Page 33 and 34: Toward the center of the mineralize
Page 35 and 36: 7.0 EXPLORATION In 2006, Castle Gol
Page 37 and 38: 9.0 SAMPLING METHOD AND APPROACH Th
Page 39 and 40: 11.0 DATA VERIFICATION 11.1 INTRODU
Page 41 and 42: Morgain Minerals Inc. El Cairo Gold
Page 43 and 44: 13.0 MINERAL PROCESSING AND METALLU
Page 45 and 46: Table 9. Castle Gold test heap leac
Page 47 and 48: material is relatively consistent a
Page 49 and 50: Plate 6. View of the El Castillo si
Page 51 and 52: 14.2.1 Methods A shift of -500,000
Page 53 and 54:
14.2.4 Pit Optimization Parameters
Page 55 and 56:
Undiluted Reserves at $600 per Ounc
Page 57 and 58:
Table 13. Comparison of Howe 2003 a
Page 59 and 60:
15.2.2 Change of Land Use The Compa
Page 61 and 62:
16.2.1 Capital and Operating Cost E
Page 63 and 64:
Table 15. Operating Cost Summary (U
Page 65 and 66:
will be operating the mine indirect
Page 67:
Table 17. Sensitivity Analysis - Gr
Page 70 and 71:
16.2.2 Economic Evaluation The Base
Page 72 and 73:
Table 23. US$ - Mexican Peso Exchan
Page 74 and 75:
• Castle Gold should complete geo
Page 76 and 77:
Panteleyev, A., 1996, Epithermal Au
Page 78 and 79:
9. To the best of my knowledge, inf
Page 80 and 81:
CERTIFICATE OF AUTHOR dated July 31
Page 82 and 83:
Appendix A Pit Optimization Level P
show all

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

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?