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

Derry, Michener, Booth & Wahl Consultants Ltd. Page 64The PEA should include:• Determination of gold recoveries in bottle roll tests from oxide, mixed andsulphide mineralization at Planes and Colinas. (in progress)• Estimation of capital and operating costs for open pit mining and whole ore leachprocessing to determine appropriate cut-off grades.• Preparation of a scoping study which would include a Floating Cone Evaluation.• Preliminary environmental and water assessment• Further consultation with village ejidos on the acceptability of mining the SanAntonio gold deposits.Depending on the results of that PEA, a program of additional drilling on 25 metresections on the Planes gold deposit may be warranted, with the goal of increasingconfidence in geological and grade continuity, to upgrade portions of the resource to anIndicated category.Drill testing the IP anomaly extending for 400 m north of Los Planes and additional(definition) drilling at Colinas would be contingent on the results of the above program atPlanes.DMBW have not determined the cost of further programs beyond this stage.20.2 BudgetThe budget is developed from Pitalla cost estimates for the 2007 drilling and explorationprogram. In DMBW’s opinion the costs are reasonable.The field program entails about 6 to 8 months of drilling, depending on drill progress,followed by a consolidation/compilation phase of 4 to 6 months, during which thePreliminary Economic Assessment will be completed and plans made for the next phase.The 2 month exploration IP survey includes preliminary and detail follow-up,interpretation and reporting. The estimated cost of the complete recommended program,including normal contingencies, is $1,962,000.DMBW have not determined the cost of further programs beyond this stage.