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

Derry, Michener, Booth & Wahl Consultants Ltd. Page 5217.9 Grade InterpolationGrades were interpolated into blocks by the method of Ordinary Kriging.Modeled 3D domains were used as hard boundaries to constrain the interpolation of grades. Onlycomposites in a particular domain were considered when interpolating grade into blocks in thatsame domain.Gemcom determines the percentage of a block falling within a particular domain by the methodof needling. For both Planes and Colinas a needling integration level of three was used so thatnine equally spaced vertical needles pierce each block.Search ellipse and variogram ranges were determined by Variography using Sage 2001 softwarefrom Issacs & Co. Similar interpolation methodology and search ellipse/variogram ranges wereused for both Planes and Colinas. Search ellipse distances used were 65 m (along strike) x 65 m(down dip) x 25 m (across strike/dip).17.10 Resource ClassificationFor this initial resource estimate all mineralization at Planes and Colinas has been classified asInferred.At the current level of drilling there are well defined geological and grade domains with goodvertical and lateral continuity and these domains were used as hard boundaries wheninterpolating grades into the block models.Current drill spacing on individual x-sections often approaches 25 metre centres (down dip),while the spacing between currently drilled x-sections is generally 50 metres (along strike).Pediment has noted, and DMBW concurs, that the next major step in the development of the SanAntonio project should be a Preliminary Economic Assessment (“PEA”) to further assess theeconomic viability of the deposits. And that depending of the results of that PEA, that a programof additional drilling on 25 metre sections may be warranted, with the goal of increasingconfidence in geological and grade continuity in order to upgrade portions of the resource tohigher resource categories.17.11 Results Of Mineral Resource EstimatesBased 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.