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

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5.0 DEPOSIT TYPE El Castillo is an epithermal gold prospect. Epithermal deposits form in the shallow parts of magmarelated hydrothermal systems (Figure 5). They are generally associated with volcanism and intrusions of calc-alkaline magmas, commonly in sub-aerial volcanic arcs. There are two end-member styles of epithermal mineral deposits: low-sulphidation and high-sulphidation (Figure 5-1). Mineralization at El Castillo is somewhat enigmatic, partly due to the lack of detailed geologic study, but in general shares more characteristics with low-sulphidation type of epithermal mineralization than high-sulphidation mineralization (Cook and Simmons, 2000; White and Hedenquist, 1995). Figure 5. Diagram of the geologic environment for epithermal deposits. Sulphide mineralization is generally introduced along faults and fractures although mineralization can also be disseminated in permeable rock strata. Sulphide assemblages include electrum, native gold, native silver, argentite, pyrargyrite, proustite, chalcopyrite, sphalerite, galena, tetrahedrite and occasional telluride minerals. Common gangue minerals include quartz, chalcedony, adularia, calcite and amethyst. Vertical metal zonation is manifested with higher amounts of gold, silver, or gold and silver along with mercury, tellurium and antimony in the upper portions of the system, and higher lead, zinc and copper contents at deeper levels. Gold and silver grades in low-sulphidation epithermal systems can be very high, occasionally reaching gold grades on the order of tens-of-grams of gold per tonne and kilograms of silver per tonne. Lowsulphidation epithermal deposits typically average around 770,000 tonnes and average 7.5 grams per tonne (“g/t”) Au, 110 g/t Ag with minor Cu, Zn and Pb (Panteleyev, 1996). It should be noted that these grades and tonnages are representative of vein-type low-sulphidation deposits. 20
At El Castillo, the presence of chalcedonic silica combined with the absence of mineral species characteristic of high-sulphidation mineralization such as enargite and alunite as well as characteristic alteration such as vuggy silica, support the low-sulphidation nature of the mineralization. Examples include Kinross’s Round Mountain deposit in the United States and Minefinders’ Dolores and Exmin Resources’ La Guitarra deposits in Mexico. It should be noted that mineralization on these or any other properties in this class of deposit are not necessarily indicative of the mineralization on the Property. 21
Page 1 and 2: TECHNICAL REPORT ON THE EL CASTILLO
Page 3 and 4: SUMMARY Introduction At the request
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: Figure 4. Cross-section through the
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
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