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

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Table 12. Remaining Mineral Resources as of October 2007 Measured Indicated Meas + Ind Inferred Cut-off Tonnes Avg Tonnes Avg Tonnes Avg Tonnes Avg Grade Above Grade Above Grade Above Grade Above Grade (g/t) Cut-off (g/t) Ounces Cut-off (g/t) Ounces Cut-off (g/t) Ounces Cut-off (g/t) Ounces 0.00 102,000,000 0.31 1,011,840 97,000,000 0.13 403,520 199,000,000 0.22 1,415,360 18,000,000 0.13 74,880 0.05 93,000,000 0.33 982,080 67,000,000 0.18 385,920 160,000,000 0.27 1,368,000 10,000,000 0.23 73,600 0.10 80,000,000 0.37 947,200 45,000,000 0.23 331,200 125,000,000 0.32 1,278,400 6,200,000 0.31 61,504 0.15 65,400,000 0.43 899,904 28,900,000 0.30 277,440 94,300,000 0.39 1,177,344 4,500,000 0.38 54,720 0.20 52,300,000 0.50 836,800 18,300,000 0.37 216,672 70,600,000 0.46 1,053,472 3,100,000 0.48 47,616 0.25 41,900,000 0.57 764,256 11,800,000 0.45 169,920 53,700,000 0.54 934,176 2,300,000 0.58 42,688 0.30 33,600,000 0.64 688,128 8,400,000 0.53 142,464 42,000,000 0.62 830,592 1,900,000 0.63 38,304 0.35 27,100,000 0.71 615,712 6,100,000 0.61 119,072 33,200,000 0.69 734,784 1,800,000 0.65 37,440 0.40 22,200,000 0.79 561,216 4,700,000 0.68 102,272 26,900,000 0.77 663,488 1,500,000 0.71 34,080 0.45 18,300,000 0.87 509,472 3,900,000 0.74 92,352 22,200,000 0.85 601,824 1,300,000 0.74 30,784 0.50 15,200,000 0.95 462,080 3,200,000 0.79 80,896 18,400,000 0.92 542,976 1,000,000 0.83 26,560 0.60 11,000,000 1.11 390,720 2,300,000 0.89 65,504 13,300,000 1.07 456,224 840,000 0.88 23,654 0.70 8,180,000 1.26 329,818 1,650,000 0.98 51,744 9,830,000 1.21 381,562 640,000 0.95 19,456 0.80 6,270,000 1.42 284,909 1,150,000 1.09 40,112 7,420,000 1.37 325,021 580,000 0.97 18,003 0.90 4,980,000 1.56 248,602 630,000 1.29 26,006 5,610,000 1.53 274,608 560,000 0.98 17,562 1.00 4,040,000 1.71 221,069 490,000 1.39 21,795 4,530,000 1.67 242,864 220,000 1.07 7,533 * Blocks under 0.15 g/tonne are not considered to be "Resources" and are included for information purposes only. Notes: • Base case is 0.15g/tonne Au; • Metal price used US$625/oz Au; • Assumed metal recovery based on previous metallurgical studies is 68% • Not all tonnage will be recovered in mining, nor will all metal be recovered in milling and processing 42
14.2.4 Pit Optimization Parameters Optimum pit shells were calculated to estimate the property’s mineral reserves. The Lerchs-Grossman optimization function within Microlynx mine planning software was used to determine the optimum pit shells for the following cost, revenue and mining parameters. Only Measured and Indicated resource blocks were used to determine the optimum pit. In other words, the Inferred Mineral Resource blocks were considered to be “waste” for the purpose of pit optimization. Practical pit design work was not carried out. In other words, haul roads and other practical considerations were not added to the various pit optimization runs. 14.2.4.1 Revenue Considerations Gold Price ($US per troy ounce) $550-700 in $25 Steps Dilution 5 % Mining Recovery 100 % Processing Recovery 68% Smelter Return 99 % 14.2.4.2 Operating Costs (Direct) Mining cost of $0.98 per tonne of ore or waste was used. Processing, Labour, Geology & Engineering, Site Construction and Miscellaneous costs were applied only to ore blocks. These costs are based on Castle Gold’s actual operating costs and were subsequently modified in the financial analysis, but the differences were insignificant. (per tonne of ore) Mining (Ore or Waste Rock) $0.98 Processing (Ore) $1.23 Labour (Ore) $0.21 Geology & Engineering $0.05 Site Construction (Plant & Leach Pads) $0.31 Miscellaneous $0.15 14.2.4.3 Maximum Slopes Overall Pit Slope Angle 45 ° 14.2.5 Results Proven and Probable Mineral Reserves at the base case of $625 ($US per troy ounce) gold price totaled 46.9 million tonnes with an average gold grade of 0.50g/tone Au (before dilution). Level sections through the resource model and the optimum pit outline are included in Appendix A (shown as the blue “ultimate” pit outline). Inferred mineral resources occurring within the optimum pit outline totaled 100,000 tonnes with an average gold grade of 0.32g/tone Au. This material would have to be mined and would be processed if the block grade was above the operating cut-off grade. However, this material is not considered to be a mineral reserve. 43
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 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: 14.2.1 Methods A shift of -500,000
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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