43-101 2007 Technical Report On The San Antonio Project, Baja ...
43-101 2007 Technical Report On The San Antonio Project, Baja ...
43-101 2007 Technical Report On The San Antonio Project, Baja ...
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Derry, Michener, Booth & Wahl Consultants Ltd. Page 9Government. <strong>The</strong> agreement between El Dragon LLC and Skinny in 2005 resulted in the fullacquisition of Pitalla, including these concessions held by Pitalla.4.0 PROPERTY DESCRIPTION AND LOCATION<strong>The</strong> SAN ANTONIO PROPERTY is located on the <strong>Baja</strong> Peninsula, Mexico, adjacent to thehistoric mining town of <strong>San</strong> <strong>Antonio</strong> and about 45 km southeast by paved Highway No.1 fromthe port city of La Paz, population (170,000) and about 160 km north of the resort town of Cabo<strong>San</strong> Lucas. Good gravel roads traverse most of the project area and a 115 kV power line passesthrough <strong>San</strong> <strong>Antonio</strong>. <strong>The</strong> road crossing the deposit area is currently being paved withsimultaneous installation of 80 kva electric power line.<strong>The</strong> property consists of six exploration concessions staked and 100% owned by Pediment,through its wholly-owned Mexican subsidiary, Cia. Minera Pitalla S.A. de C.V., that cover37,800 hectares (ha) and an additional 14 km of favorable geological trend.DMBW reviewed the title documents for two of the concessions which indicated that theproperty taxes have been paid for the current period ending September 30, <strong>2007</strong>. <strong>On</strong> the TRINIconcession the license has not yet been received, but DMBW has read the Letters of Applicationand their receipt by the Mining department. At the current exchange rate of 0.10, the yearly taxesare about US $15,300. <strong>The</strong> concessions are listed in Table 4.1 and their location relative to LaPaz is shown in Figure 4.1.DMBW observed and photographed a common Discovery Monument for EMILY, CIRIO andTRINI, located at UTM 0597728E; 2638467N (NAD 27 Mexico). This lies next to the main NE-SW gravel road to <strong>San</strong> <strong>Antonio</strong> village passing just east of the EMILY concession.<strong>The</strong> properties were originally held by Cia. Minera Pitalla. Skinny Technologies Ltd., thepredecessor company of Pediment, issued 5,000,000 shares in 2004 to acquire all the outstandingshares of El Dragon Minerals LLC, which company then owned 100% of the issued shares ofCia. Minera Pitalla. Melvin Herdrick, Vice President Exploration and a Director of Pediment, isthe majority shareholder in El Dragon. This company owned six properties, five in Sonora andthe Las Colinas property in <strong>Baja</strong> California Sur. Additional bonus shares of Pitalla, totaling2,500,000, were to be issued to the original shareholders of El Dragon, should a minimum of1,000,000 ounces of gold be found on three or less of the properties; also one of these propertiesneeded to contain a minimum 500,000 ounces of gold. This agreement is still in effect. <strong>The</strong>re areno underlying royalties according to Pediment.