43-101 2007 Technical Report On The San Antonio Project, Baja ...

Derry, Michener, Booth & Wahl Consultants Ltd. Page 4517.0 MINERAL RESOURCE AND RESERVE ESTIMATES17.1 Historic Mineral Resource EstimateAn independent estimate of mineralized material defined at Las Colinas was carried out for EchoBay Mines by a Qualified Person (Kuyper, 1996) before the implementation of NationalInstrument 43-101 reporting standards. A specific gravity of 2.7 was used. No gold values werecut as no assays exceeded 34 g/t Au. Currently available information suggests that Kuyper/EchoBay had not surveyed the drill hole collar locations at the time of this estimation exercise andthat they used hole locations rounded to the nearest 50 m. Based on data from 16 holes and fivetrenches Kuyper’s estimate of the mineralized material present was 6.84 MT at a grade of 1.02g/t Au using a cross-sectional method and extending mineralization a maximum distance of 50 mfrom each intercept. Kuyper noted that approximately 15% of this mineralization occurred on theadjoining Texcalama Concession to the south that was not owned by Pediment.The Echo Bay estimate is considered a Historical Resource that is not compliant with NI 43-101and is reported for informational purposes only.Echo Bay carried out additional drilling in 1997, primarily to the north of the resource estimatedby Kuyper in 1996. This drilling intercepted several mineralized intervals which suggested thatthe mineralized trend was open to the north.17.2 Current Mineral Resource EstimatesThe current National Instrument 43-101 compliant Mineral Resource Estimates for the LosPlanes (‘Planes’) and Las Colinas (‘Colinas’) zones on Pediment’s San Antonio project werecompleted by Dave Laudrum of Ashloo Consultants Ltd., under contract to DMBW, usingGEMS Software Version 6.1.3, from Gemcom Software International. The resource is reportedbased on cut-off grades and economic parameters produced by Ian Thompson of DMBW inSection 18.The resource estimate contains all assay data which had been received and passed Pediment’sQA/QC procedures as of December 2007. Similar estimation methodologies were used for boththe Los Planes and Las Colinas deposits.Based on the parameters described in this report DMBW has estimated an Inferred MineralResource for the Los Planes deposit of 30.58 million tonnes at an average grade of 1.32 g/t Au,using a 0.4 g/t Au cut-off grade. In addition DMBW has estimated an Inferred Mineral Resourcefor the Las Colinas deposit of 5.62 million tonnes at an average grade of 0.83 g/t Au, using a0.4 g/t Au cut-off grade.17.3 Geological InterpretationA key component of the resource estimation process is the construction of three-dimensional(‘3D’) models of the mineralized domains which correspond to the detailed geologicalinterpretation of the deposit. Domains are required in order to group geologically and statistically