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

Derry, Michener, Booth & Wahl Consultants Ltd. Page 6319.0 INTERPRETATION AND CONCLUSIONSAt the current level of exploration DMBW believe that Pediment has developed anappropriate geological interpretation for estimation of mineral resources at both Planesand Colinas. There are well defined geological and grade domains with good vertical andlateral continuity, suitable for use as hard boundaries, when interpolating grades into theblock models.Quality assurance/quality control on blanks, standards and duplicates indicate that theassay data provided on the Planes Deposit is of sufficient quality to estimate a resource.Gold assays from 73 holes at Planes and from 19 holes at Colinas were used to completethe resource estimates; composite length was two metres.The Los Planes zone can be traced in the IP data for 600 metres north of Line2,639,800N, or 400 metres beyond the most northerly holes, 07PLRC-08 and07PLRC-42, thus justifying further exploration.20.0 RECOMMENDATIONS AND BUDGET20.1 RecommendationsDMBW recommends a further Exploration Program of infill vertical Reverse Circulation(‘RC’) and Core drilling at Planes in 2008 on a 50 x 50 metre grid within a quadrangleformed by coordinates 2639350-2640150 north and 598500-598800 east. The intention isto outline all significant mineralization within this (800 x 300) 240,000 square metreblock, thus possibly increasing the inferred resource base, as a precursor to closer spaceddrilling. This program would entail about 50 holes or about 10,000 metres.Note 1: The extent of an increase in inferred resources, if any, is unknown at this time.Note 2: It cannot be assumed that all, or any part of the present inferred mineral resource, wouldbe upgraded to a higher category.Continued exploration of the Concession lands is also recommended. The IP coverageshould be expanded to detail survey the northern extension of the Los Planes zone, inaddition to detailing the parallel zones found in 2007.Pediment has noted, and DMBW concurs, that following this, the next major step in thedevelopment of the San Antonio project should be a Preliminary Economic Assessment(“PEA”).