technical report on the curipamba project, ecuador · roscoe postle associates inc. (rpa) was...

November 7, 2011

ROSCOE POSTLE ASSOCIATES INC.

SALAZAR RESOURCES LTD.

TECHNICAL REPORT ON THECURIPAMBA PROJECT,ECUADOR

NI 43-101 Report

Qualified Persons:James Lavigne, P.Geo.Elizabeth McMonnies, P.Geo.

Report Control Form Document Title Technical Report on the Curipamba Project, Ecuador

Client Name & Address

Salazar Resources Ltd. #1305 - 1090 West Georgia Street Vancouver, British Columbia V6E 3V7

Document Reference

Project # 1750

Status & Issue No.

Final Version

Issue Date November 7, 2011 Lead Author James G. Lavigne

Elizabeth McMonnies

(Signed & Sealed) (Signed & Sealed)

Peer Reviewer Wayne W. Valliant

(Signed & Sealed)

Project Manager Approval William Roscoe

(Signed & Sealed)

Project Director Approval Wayne W. Valliant

(Signed & Sealed)

Report Distribution Name No. of Copies Client RPA Filing 1 (project box)

Roscoe Postle Associates Inc.

55 University Avenue, Suite 501 Toronto, Ontario M5J 2H7

Canada Tel: +1 416 947 0907

Fax: +1 416 947 0395 [email protected]

mailto:[email protected]

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Salazar Resources Ltd. – Curipamba Project, Project # 1750

Technical Report NI 43-101 – November 7, 2011

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TABLE OF CONTENTS PAGE

1 SUMMARY ................................................................................................................ 1-1 Executive Summary ................................................................................................ 1-1 Technical Summary ................................................................................................ 1-5

2 INTRODUCTION ....................................................................................................... 2-1

3 RELIANCE ON OTHER EXPERTS ........................................................................... 3-1

4 PROPERTY DESCRIPTION AND LOCATION .......................................................... 4-1 Mineral Tenure ....................................................................................................... 4-1

5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ........................................................................................................ 5-1

Accessibility ............................................................................................................ 5-1 Climate ................................................................................................................... 5-1 Local Resources ..................................................................................................... 5-1 Infrastructure .......................................................................................................... 5-2 Physiography .......................................................................................................... 5-2

6 HISTORY .................................................................................................................. 6-1

7 GEOLOGICAL SETTING AND MINERALIZATION ................................................... 7-1 Regional Geology ................................................................................................... 7-1 Local Geology ........................................................................................................ 7-3 Property Geology.................................................................................................... 7-4 Mineralization ....................................................................................................... 7-14

8 DEPOSIT TYPES ...................................................................................................... 8-1

9 EXPLORATION ......................................................................................................... 9-1

10 DRILLING .............................................................................................................. 10-1

11 SAMPLE PREPARATION, ANALYSES AND SECURITY ..................................... 11-1

12 DATA VERIFICATION ........................................................................................... 12-1 Database Verification ........................................................................................... 12-1 Quality Assurance and Quality Control ................................................................. 12-2 Certified Reference Materials ............................................................................... 12-2 Duplicate Pulp Samples...................................................................................... 12-16 Blank Samples ................................................................................................... 12-20 Laboratory Check Samples ................................................................................ 12-23 RPA Check Samples .......................................................................................... 12-27

13 MINERAL PROCESSING AND METALLURGICAL TESTING ............................... 13-1

14 MINERAL RESOURCE ESTIMATE ....................................................................... 14-1 General Statement ............................................................................................... 14-1 Database .............................................................................................................. 14-1

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Resource Evaluation and Cut-off Grade ............................................................... 14-2 Geological Interpretation and Geology Solids ....................................................... 14-2 Assay and Composite Statistics ............................................................................ 14-7 Capping of High Grade Assay Values ................................................................... 14-9 Compositing ....................................................................................................... 14-10 Density ............................................................................................................... 14-13 Trend Analyses and Variography ........................................................................ 14-14 Block Model ........................................................................................................ 14-15 Rock Model ........................................................................................................ 14-16 Density Model ..................................................................................................... 14-16 Grade Interpolation and Grade Model................................................................. 14-17 Block Model Validation ....................................................................................... 14-18 Mineral Resource Estimate and Classification .................................................... 14-25 Comparison with the 2010 Resource Estimate. .................................................. 14-26

15 MINERAL RESERVE ESTIMATE .......................................................................... 15-1

16 MINING METHODS .............................................................................................. 16-1

17 RECOVERY METHODS ....................................................................................... 17-1

18 PROJECT INFRASTRUCTURE ............................................................................ 18-1

19 MARKET STUDIES AND CONTRACTS................................................................ 19-1

20 ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT ..................................................................................................................... 20-1

Social Issues ........................................................................................................ 20-1 Environmental Considerations .............................................................................. 20-1

21 CAPITAL AND OPERATING COSTS .................................................................... 21-1

22 ECONOMIC ANALYSIS ........................................................................................ 22-1

23 ADJACENT PROPERTIES ................................................................................... 23-1

24 OTHER RELEVANT DATA AND INFORMATION ................................................. 24-1

25 INTERPRETATION AND CONCLUSIONS ............................................................ 25-1

26 RECOMMENDATIONS ......................................................................................... 26-1

27 REFERENCES ...................................................................................................... 27-1

28 DATE AND SIGNATURE PAGE ............................................................................ 28-1

29 CERTIFICATE OF QUALIFIED PERSON ............................................................. 29-1

30 APPENDIX 1 ......................................................................................................... 30-1 Laboratory Procedures ......................................................................................... 30-1

31 APPENDIX 2 ......................................................................................................... 31-1 Grade Capping Analysis ....................................................................................... 31-1

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LIST OF TABLES PAGE

Table 1-1 Proposed Program and Budget .................................................................. 1-4 Table 1-2 El Domo Mineral Resource Estimate - September 29, 2011 ....................... 1-7 Table 4-1 Property Status ........................................................................................... 4-3 Table 4-2 Permit Status .............................................................................................. 4-4 Table 9-1 Stream Sediment Sampling Results ........................................................... 9-4 Table 9-2 Soil Sampling Results ................................................................................. 9-6 Table 9-3 Rock Sampling Results .............................................................................. 9-8 Table 10-1 Phase 1 Drill Holes ................................................................................. 10-1 Table 10-2 Phase 2 Drilling Progress ....................................................................... 10-3 Table 10-3 Definition Drilling Progress ..................................................................... 10-3 Table 10-4 Mineralized Intercepts for the Main Zone in El Domo Mineral Resource . 10-6 Table 12-1 Expected Values and Ranges of Standards ........................................... 12-3 Table 12-2 CRM Failure Summary ........................................................................... 12-3 Table 12-3 Summary of the CRM Results for Copper ............................................... 12-7 Table 12-4 Summary of the CRM Results for Zinc.................................................... 12-7 Table 12-5 Summary of the CRM Results for Gold ................................................. 12-11 Table 12-6 Summary of the CRM Results for Silver ............................................... 12-14 Table 12-7 Summary of the CRM Results for Lead ................................................ 12-16 Table 12-8 Pulp Duplicate Statistics ....................................................................... 12-20 Table 12-9 Pulp Duplicate Statistics Without Outliers ............................................. 12-21 Table 12-10 Laboratory Check Statistics ................................................................ 12-24 Table 12-11 RPA Check Samples .......................................................................... 12-28 Table 14-1 El Domo Mineral Resource Estimate - September 29, 2011 ................... 14-1 Table 14-2 Economic Assumptions for Cut-off Grade ............................................... 14-2 Table 14-3 Statistics of Assays in Resource Wireframes .......................................... 14-7 Table 14-4 Impact of Capping Level ......................................................................... 14-9 Table 14-5 Statistics of Composites in Resource Wireframes ................................ 14-10 Table 14-6 Average SG Determinations by Rock Type .......................................... 14-14 Table 14-7 Block Model Dimensions ...................................................................... 14-16 Table 14-8 Weighted SG in Resource Wireframes ................................................. 14-16 Table 14-9 Interpolation Parameter Summary ........................................................ 14-18 Table 14-10 Block Model Summary Statistics ......................................................... 14-19 Table 14-11 Resource Model – NN Model Comparison .......................................... 14-19 Table 14-12 Resource Model and Polygonal Model Comparison ........................... 14-20 Table 14-13 El Domo Mineral Resource Estimate – September 29, 2011 .............. 14-26 Table 14-14 Statistics of Assays in Resource Wireframes, 2010 and Current Resource Estimates ................................................................................................................. 14-27 Table 14-15 Statistics of Assays in Resource Wireframes, 2010 and Current Resource Estimates ................................................................................................................. 14-27 Table 26-1 Proposed Phase 1 Program and Budget ................................................ 26-3

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LIST OF FIGURES PAGE

Figure 4-1 Location Map............................................................................................. 4-6 Figure 4-2 Concession Map ....................................................................................... 4-7 Figure 7-1 Regional Geology ...................................................................................... 7-2 Figure 7-2 Property Geology .................................................................................... 7-11 Figure 7-3 Lithostratigraphic Columns for CURI-08-45 and CURI-08-46 .................. 7-12 Figure 7-4 Distribution of Anomalous Copper in Surface Samples ........................... 7-13 Figure 8-1 Target Model ............................................................................................. 8-3 Figure 9-1 Naves Central and Sesmo Sur IP Chargeability Anomalies ....................... 9-3 Figure 11-1 Drill Hole Photograpghy ........................................................................ 11-2 Figure 12-1 Certified Reference Materials – Cu ........................................................ 12-4 Figure 12-2 Certified Reference Materials – Zn ........................................................ 12-8 Figure 12-3 Certified Reference Materials– Au ......................................................... 12-9 Figure 12-4 Certified Reference Materials – Ag ...................................................... 12-11 Figure 12-5 Certified Reference Materials – Pb ...................................................... 12-15 Figure 12-6 Precision Curves for Copper Duplicates .............................................. 12-17 Figure 12-7 Precision Curves for Gold Duplicates .................................................. 12-18 Figure 12-8 Precision Curves for Silver Duplicates ................................................. 12-18 Figure 12-9 Precision Curves for Zinc Duplicates ................................................... 12-19 Figure 12-10 Precision Curves for Lead Duplicates ................................................ 12-19 Figure 12-11 Copper Field Blanks .......................................................................... 12-21 Figure 12-12 Gold Field Blanks .............................................................................. 12-21 Figure 12-13 Silver Field Blanks ............................................................................. 12-22 Figure 12-14 Lead Field Blanks .............................................................................. 12-22 Figure 12-15 Zinc Field Blanks ............................................................................... 12-22 Figure 12-16 Laboratory Checks for Copper Q-Q Plot ............................................ 12-25 Figure 12-17 Laboratory Checks for Gold Q-Q Plot ................................................ 12-25 Figure 12-18 Laboratory Checks for Silver Q-Q Plot ............................................... 12-26 Figure 12-19 Laboratory Checks for Zinc Q-Q Plot ................................................. 12-26 Figure 12-20 Laboratory Checks for Lead Q-Q Plot ................................................ 12-27 Figure 14-1 El Domo Drill Hole Plan ......................................................................... 14-4 Figure 14-2 Vertical Cross-Section 9855100 N ......................................................... 14-5 Figure 14-3A 3D View of Resource Wireframes - Looking Down .............................. 14-6 Figure 14-3B 3D View of Resource Wireframes - Footwall of the Andesite and Main Zone ........................................................................................................................... 14-6 Figure 14-4 Gold Assay Histogram – All Lenses ...................................................... 14-7 Figure 14-5 Copper Assay Histogram – All Lenses .................................................. 14-8 Figure 14-6 Silver Assay Histogram – All Lenses ..................................................... 14-8 Figure 14-7 Lead Assay Histogram – All Lenses ...................................................... 14-8 Figure 14-8 Zinc Assay Histogram – All Lenses ....................................................... 14-9 Figure 14-9 Gold Assays Composite Histogram – All Lenses ................................. 14-11 Figure 14-10 Copper Assays Composite Histogram – All Lenses ........................... 14-11 Figure 14-11 Silver Assays Composite Histogram – All Lenses .............................. 14-12 Figure 14-12 Lead Assays Composite Histogram – All Lenses ............................... 14-12 Figure 14-13 Zinc Assays Composite Histogram – All Lenses ................................ 14-13 Figure 14-14 Omni-Directional Variogram Cu ......................................................... 14-15 Figure 14-15 Downhole Variogram Cu ................................................................... 14-15 Figure 14-16 Vertical Section 5150N Block Model Cu Contours and Drill Holes ..... 14-21 Figure 14-17 Plan View Cu Contours and Block Model .......................................... 14-22

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Figure 14-18 Plan View Zn Contours and Block Model ........................................... 14-23 Figure 14-19 Plan View Au Contours and Block Model .......................................... 14-24 Figure 14-20 Drill Hole Plan with Resource Outlines .............................................. 14-28

LIST OF APPENDIX FIGURES & TABLES PAGE

Table 30-1 ALS Chemex Minerals Sample Preparation ............................................ 30-2 Table 30-2 ALS Chemex Minerals Analytical Procedures ......................................... 30-3 Table 30-3 ALS Chemex Minerals Analytical Procedures ......................................... 30-5 Figure 31-1 Gold Assay Percentile Analysis – All Lenses ......................................... 31-2 Figure 31-2 Gold Assay Probability Plot – All Lenses ............................................... 31-3 Figure 31-3 Gold Cutting Curve – All Lenses ............................................................ 31-4 Figure 31-4 Copper Assay Percentile Analysis – All Lenses ..................................... 31-4 Figure 31-5 Copper Assay Probability Plot – All Lenses ........................................... 31-5 Figure 31-6 Copper Cutting Curve – All Lenses ....................................................... 31-6 Figure 31-7 Silver Assay Percentile Analysis – All Lenses ....................................... 31-6 Figure 31-8 Silver Assay Probability Plot – All Lenses .............................................. 31-7 Figure 31-9 Silver Cutting Curve – All Lenses .......................................................... 31-8 Figure 31-10 Lead Assay Percentile Analysis – All Lenses ...................................... 31-8 Figure 31-11 Lead Assay Probability Plot – All Lenses ............................................. 31-9 Figure 31-12 Lead Cutting Curve – All Lenses ....................................................... 31-10 Figure 31-13 Zinc Assay Percentile Analysis – All Lenses ...................................... 31-10 Figure 31-14 Zinc Assay Probability Plot – All Lenses ............................................ 31-11 Figure 31-15 Zinc Cutting Curve – All Lenses ........................................................ 31-12

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1 SUMMARY EXECUTIVE SUMMARY Roscoe Postle Associates Inc. (RPA) was retained by Fredy Salazar, President and

CEO of Salazar Resources Ltd. (Salazar), to prepare an independent Technical Report

on the Curipamba Project (the Project) located near Ventanas, Ecuador. The purpose of

this report is to provide an updated Mineral Resource estimate of the El Domo deposit.

This Technical Report conforms to National Instrument 43-101 Standards of Disclosure

for Mineral Projects (NI 43-101).

Salazar is a Toronto Stock Exchange (TSX) listed (TSX-V:SRL) mineral resource

company engaged in mineral exploration and development in Ecuador. Deposit types

being explored for by Salazar in Ecuador include Epithermal Au-Ag and Porphyry Cu-

Mo-Au. The target on the Curipamba Project is gold rich volcanogenic massive sulphide

(VMS) deposits. The El Domo deposit is the most advanced on the Curipamba Project

and is the subject of the current resource estimate update.

CONCLUSIONS RPA offers the following recommendations and conclusions:

• The Project has met its objectives in that it has discovered a Cu-Zn-Au-Ag deposit and possibly a new VMS camp in Ecuador.

• Dr. Warren Pratt was the first to document and describe the Kuroko-type VMS

environment and has established a lithostratigraphy for the Las Naves/El Domo area. Dr. Jim Franklin identified a marker unit in the immediate hanging wall of the massive sulphide mineralization and defined the zoned nature of the mineralized system.

• The geological and structural knowledge gained from the exploration drilling will

provide a very practical and simple field exploration tool.

• Drilling of the El Domo prospect has defined an intact, upright, and only mildly disturbed Kuroko-type VMS deposit.

• The sampling, sample preparation, and sample analysis programs are

appropriate for the type of mineralization.

• The quality assurance/quality control (QA/QC) program requires enhancement and a formal analysis and reporting procedure.

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• Metallurgical testing suggested that recovery by differential flotation was likely the most effective flow sheet for recovering the valuable minerals. The metallurgical test work completed to date remains preliminary and further metallurgical study is required.

• Mineral Resources were estimated based on interpretation of massive sulphide

and/or semi-massive sulphide and refined using a US$50 net smelter return (NSR) cut-off value.

• Indicated Mineral Resources are estimated at 5.53 million tonnes averaging 2.4%

Cu, 0.3% Pb, 2.5% Zn, 2.8 g/t Au, and 48.4 g/t Ag.

• Inferred Mineral Resources are estimated at 1.46 million tonnes averaging 1.9% Cu, 0.3% Pb, 2.8% Zn, 2.4 g/t Au, and 52.2 g/t Ag.

• In plan view, the Main Zone, which contains the Indicated Resource, forms a “C” shaped body, with the northern part dipping shallowly to the east and the southern part dipping shallowly to the west. The central part of the Main Zone is characterized by multiple intersections per drill hole. Other zones with continuity demonstrated by massive sulphide intersections in multiple holes occur parallel to and in the immediate hanging wall to the Main Zone and immediately under the andesite.

• The El Domo mineralization is a VMS discovery that has a number of zones that are currently supported by limited drill hole intersections and require definition diamond drilling.

• Other prospects in the area require geophysical surveys and possibly diamond

drilling, e.g., La Vaquera and Agua Sante.

• Drilling on the Sesmo Sur prospect has encountered gold values that may help define the roots of a VMS system. More drilling is warranted to understand the structural/stratigraphic controls on the gold mineralization. Electromagnetic surveys may outline conductors indicative of massive sulphides adjacent to the area of current drilling.

• Prospecting, stream and soil geochemical surveys, geological mapping, induced

polarization (IP) surveying, and diamond drilling have all been effectively employed to explore the Curipamba Project area.

• Improvements on drill hole directional surveys were noted in 2010/2011,

however, better control is still required on the three dimensional location of all drill holes.

RECOMMENDATIONS RPA proposes the following recommendations:

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• At the time of the RPA site visit, the Salazar non-magnetic survey unit was being repaired. It is recommended that a replacement system be implemented and that the directional survey location program be continued for all future drilling.

• To provide consistency in the methods, one laboratory of the two currently used should be used as the primary laboratory for all analyses, and the second laboratory should be used for check assays and analyses.

• The QA/QC program should be modified to include:

a. Analysis and interpretation of QA/QC results on a regular basis. b. Establishment of a protocol for non-compliant results on a timely manner

and a formal reporting system for QA/QC results. c. A revision of laboratory procedures. d. Taking field, reject, and pulp duplicates on a regular basis and making

sure the duplicates selected are representative of the resource grade distribution.

e. Investigating why the pulp precision levels are generally poor and implementing changes to improve them.

f. Discontinue the use of the BK blank sample.

• Salazar should acquire specific gravity (SG) measurements of full sample lengths, to the extent that the core (RQD) permits, thus providing direct information relating density to grade.

• Metallurgical test work should continue with the focus on a conventional flow sheet employing fine grinding, rougher concentrate regrinding, and differential flotation of separate copper-lead and zinc concentrates. Alternative recovery methods such as less conventional flotation schemes, gravity recovery of precious metals, and leaching are also recommended. It may be advantageous to produce lower grade concentrates in order to maximize precious metal recovery.

• Salazar should continue the investigation and interpretation of grade directional trends and evaluate further variography.

• Salazar should continue to evaluate the deposit for metal zoneation as is typical

in many VMS deposits. Definition of specific metal zoneations will likely have the effect of increasing capping grade levels.

• Ordinary Kriging should be evaluated as an interpolation method in future resource estimates for the El Domo deposit.

• VMS style mineralization is typically responsive to electromagnetic geophysical surveys. However, the typical conductive responses are not associated with the discoveries known to date on this deposit. Due to this fact, IP surveys have been employed with success and electromagnetic surveys have not been used due to their high cost and a belief that results will not add value. It is possible for conductive deposits still to be present. The geophysical study recommended is to integrate all data into a 3D model for a more thorough analysis of physical rock properties. Wireline physical rock properties collected at a continuous scale, with

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structural orientation from optical and acoustic televiewers, will provide the answers for future exploration. For example, sphalerite has a high density and normally some magnetic susceptibility is associated with the deposits. Constrained inversion of the potential fields will highlight other areas of interest. Conductivity/resistivity needs to be measured across a broad band. IP should still be conducted over these areas. Downhole Magnetometric Resistivity (DHMMR) should be tested for use, as it enhances current channelling and can identify disseminated deposits.

• A major focus of the first phase of work recommended is step-out drilling to

define the nature and extent of the El Domo deposit and to test other geological and geophysical targets that have been defined elsewhere on the property. The program budget also includes an airborne geophysical survey. The work program and budget are summarized in Table 1-1.

TABLE 1-1 PROPOSED PROGRAM AND BUDGET

Salazar Resources Ltd – Curipamba Project

Program Proposed Cost

(US$)

Project Management/Staff Costs 150,000 Geology – mapping, logging, compilation 150,000

Communications- telephone/fax/radio/hardware/software 10,000 Camp Costs 500,000 Supplies and core boxes 50,000

Ground geophysical follow-up 150,000 VTEM Survey - 3,000 line Km 500,000 Diamond Drilling - El Domo Step Out 8,000m@$110m 880,000 Other targets – Naves Central 3,000m@$110m 330,000 Other targets within the project 4,000m@$110m 440,000 Drill equipment maintenance 150,000

Assaying – geochemistry 100,000 Transportation – vehicles 50,000 Community Engagement and environmental compliance 150,000 Shipping- couriers, freight 30,000

Sub-total 3,640,000 Contingencies - 10% 364,000

Total 4,004,000

• RPA recommends, contingent on the successful completion of phase 1 recommendations, that Salazar complete a Preliminary Assessment (PA) of the project. RPA estimates a budget of CDN$150,000 for the completion of a PA.

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TECHNICAL SUMMARY

PROPERTY DESCRIPTION AND LOCATION The Curipamba property is located in the foothills of the Cordillera Occidental of the

Andes and straddles the boundaries of Bolivar and Los Rios provinces of Ecuador. It is

located immediately east of the town of Ventanas and approximately 150 km southwest

of Quito, the capital of Ecuador. The property is located in UTM PDSA 17S coordinates

at 681,000E, 9,842,000N and 702,000E and 9,869,000N.

LAND TENURE The Project is owned 100% by Salazar with no additional payments or royalties or back-

in rights.

SITE INFRASTRUCTURE There is no infrastructure in the Project area apart from good road access. The national

power grid is within 20 km of the Naves Central (El Domo) area. Salazar has a field

office in the town of Las Naves on the northwestern side of the Project area.

HISTORY The highlights of the ownership history are summarized as follows:

• 2003 Las Naves claims were taken by Ivan Leiva Santillan from the state.

• 2005 Amlatminas S.A. transfer Las Naves claims to Ivan Leiva.

• 2005 The claims were solicited from the Ecuatorian state by Fredy Salazar and Geovani Acosta.

• 2006 Claims transferred to Curimining S.A., owned by Messrs. Fredy Salazar and Geovani Acosta.

• 2006 Curimining SA sold the property to Consolidated Kookabura.

• 2006 Consolidated Kookabura changed the name to Salazar.

The highlights of the exploration history are summarized as follows:

• 1991 RTZ Mining PLC Inc. conducted regional geological mapping and stream sediment geochemistry.

• 2006 Newmont Mining Corporation conducted Bulk Leachable Extractable Gold stream sediment survey.

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• 2007-2008 Salazar conducted geological mapping, prospecting, geochemical surveys, geophysical surveys, and Phase 1 diamond drilling.

• 2008-2009 Salazar commissioned Dr. Pratt of Specialized Geological Mapping Ltd. to conduct geological mapping and re-interpretation of the El Domo and Sesmo Sur deposits.

• 2009 Salazar commissioned Dr. Franklin of Franklin Geosciences Ltd. to reinterpret geology.

• 2009-2010 Salazar conducted Phase 2 diamond drilling program.

• 2010-2011 Salazar continuing definition drilling program at El Domo mineral deposit.

GEOLOGY The Curipamba Project lies in the Andean Sierra which comprises two mountain chains

separated by a central inter-Andean valley or depression. To the west of the inter-

Andean valley, the Cordillera Occidental predominantly consists of fault-bounded

Cretaceous–Tertiary accreted oceanic terranes, comprising basaltic volcanic and

volcaniclastic rocks, which are the main focus of economic interest for this report.

The igneous and sedimentary units in the Cordillera Occidental are grouped into several

structural terranes of which the two most important for this report are the Pallatanga and

the Macuchi. The younger Macuchi terrane, which hosts the Curipamba Project, was

accreted against the Pallatanga continental margin during Eocene time, with final

closure of the Macuchi back-arc basin probably in Late Eocene. Rocks in the Macuchi

terrane comprise a basaltic to andesitic volcanosedimentary island arc sequence.

The main rock types in the Macuchi stratigraphy, in approximate order of abundance,

are: lithic-rich volcanic sandstones, breccias (with basaltic andesite fragments) and tuffs;

volcanic siltstones; cherts; pillow breccias and hyaloclastites; dolerites and

microporphyritic pillow basalts.

The stratigraphy in the Las Naves area has been interpreted based on geological

mapping diamond drill logs. Three main subdivisions were defined, the Lower Acid Unit

(LAU), the Massive Sulphide Unit (MSU), and the Upper Tuffaceous Unit (UTU). The

apparent metamorphic grade for rocks in the area is subgreenschist facies. Las Naves

comprises areas of flat-lying strata, locally dipping at approximately 12º to the southeast,

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bounded by steep north-northeast, northeast, and north-northwest striking faults, all of

which appear mineralized.

MINERAL RESOURCES AND MINERAL RESERVES The current Mineral Resource estimate for the El Domo deposit was prepared by RPA

and is summarized in Table 1-2. The Mineral Resource estimate is based on diamond

drilling completed from 2008 to 2011 and the geological interpretation of the deposit

completed by Salazar geological staff. RPA calculated a net smelter return (NSR) value

based on metal prices and assumed operating costs and other parameters and

determined an NSR value of US$50/t as an economic cut-off grade. This NSR value was

utilized by RPA to supplement the geological interpretation by Salazar in the

interpretation of mineralized domains for resource estimation. All blocks within the

geological interpretation are reported as resource.

TABLE 1-2 EL DOMO MINERAL RESOURCE ESTIMATE - SEPTEMBER 29, 2011

Salazar Resources Ltd. – Curipamba Project

Category Tonnes Copper Zinc Lead Gold Silver

(Mt) (%) (%) (%) (g/t) (g/t)

Indicated 5.53 2.4 2.5 0.3 2.8 48.4 Inferred 1.46 1.9 2.8 0.3 2.4 52.2

Notes:

1. CIM definitions were followed for Mineral Resources. 2. Mineral Resources are estimated based on massive and semi-massive sulphide logs interpretation

and at a net smelter return cut-off of US$50 per tonne. 3. Metal Prices used are US$3. 50/lb Cu, US$1.15/lb Zn, US$1.15/lb Pb, US$1,400/oz Au and

US$26.00/oz Ag. 4. Metallurgical recovery factors assumed were 87% Cu, 88% Zn, 65% Pb, 60% Au, and 55% Ag. 5. Common industry values for smelter terms were assumed. 6. Bulk density was estimated by lens, based on specific gravity determinations for each rock type. 7. A minimum thickness of 2.0 metres was used.

There are currently no Mineral Reserves estimated for the Project.

MINERAL PROCESSING There is currently no mineral processing at the Project. Metallurgical test work was done

on representative samples from 98 intercepts from 12 diamond drill holes within the

limits of the Mineral Resources.

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ENVIRONMENTAL CONSIDERATIONS An Environment Impact Assessment (EIA) report has been prepared and accepted,

effective December 15, 2009, by the Ministry of the Environment, allowing exploration to

be initiated. Environmental Auditing of EIA 2010 (Concessions Las Naves 1, Las Naves

2, Las Naves 5, Jordan 1, Las Naves, Las Naves 3, and Jordan 2) was granted. A

further EIA will be required prior to commencing exploitation.

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2 INTRODUCTION Roscoe Postle Associates Inc. (RPA) was retained by Fredy Salazar, President and

CEO of Salazar Resources Ltd. (Salazar), to prepare an independent Technical Report

on the Curipamba Project (the Project) located near Ventanas, Ecuador. The purpose of

this report is to provide an updated Mineral Resource estimate of the El Domo deposit.

This Technical Report conforms to National Instrument 43-101 Standards of Disclosure

for Mineral Projects (NI 43-101).

Salazar is a Toronto Stock Exchange (TSX) listed (TSX-V:SRL) mineral resource

company engaged in mineral exploration and development in Ecuador. Deposit types

being explored for by Salazar in Ecuador include Epithermal Au-Ag and Porphyry Cu-

Mo-Au. The target on the Curipamba Project is gold rich volcanogenic massive sulphide

(VMS) deposits. The El Domo deposit is the most advanced on the Project and is the

subject of the current resource estimate update.

SOURCES OF INFORMATION A site visit was completed by James Lavigne, P. Geo., Associate Consulting Geologist,

RPA, and Elizabeth McMonnies, P. Geo., Geologist, RPA, during the period July 1 to 4,

2011. During this period, RPA visited the core logging and sampling facility, the El

Domo property, and the Ecuadorian head office of Salazar in Quito. Salazar personnel

that facilitated the site visit and provided geological/exploration data and information

include:

• Kieran Downes, P. Geo., Qualified Person, Salazar

• Francisco Soria Venegas, Exploration Manager, Salazar

• Marcelo Alvarez, Geologist and Technical Manager of the Curipamba Project

• Tatiana Nieto, Assistant Manager, Salazar

The documentation reviewed, and other sources of information, are listed at the end of

this report in Section 27 References.

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LIST OF ABBREVIATIONS Units of measurement used in this report conform to the Imperial system. All currency in

this report is US dollars (US$) unless otherwise noted.

µ micron km2 square kilometre °C degree Celsius kPa kilopascal °F degree Fahrenheit kVA kilovolt-amperes µg microgram kW kilowatt A ampere kWh kilowatt-hour a annum L litre bbl barrels L/s litres per second Btu British thermal units m metre C$ Canadian dollars M mega (million) cal calorie m2 square metre cfm cubic feet per minute m3 cubic metre cm centimetre min minute cm2 square centimetre MASL metres above sea level d day mm millimetre dia. diameter mph miles per hour dmt dry metric tonne MVA megavolt-amperes dwt dead-weight ton MW megawatt ft foot MWh megawatt-hour ft/s foot per second m3/h cubic metres per hour ft2 square foot opt, oz/st ounce per short ton ft3 cubic foot oz Troy ounce (31.1035g) g gram ppm part per million G giga (billion) psia pound per square inch absolute Gal Imperial gallon psig pound per square inch gauge g/L gram per litre RL relative elevation g/t gram per tonne s second gpm Imperial gallons per minute st short ton gr/ft3 grain per cubic foot stpa short ton per year gr/m3 grain per cubic metre stpd short ton per day hr hour t metric tonne ha hectare tpa metric tonne per year hp horsepower tpd metric tonne per day in inch US$ United States dollar in2 square inch USg United States gallon J joule USgpm US gallon per minute k kilo (thousand) V volt kcal kilocalorie W watt kg kilogram wmt wet metric tonne km kilometre yd3 cubic yard km/h kilometre per hour yr year

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3 RELIANCE ON OTHER EXPERTS This report has been prepared by Roscoe Postle Associates Inc. (RPA) for Salazar

Resources Ltd. (Salazar). The information, conclusions, opinions, and estimates

contained herein are based on:

• Information available to RPA at the time of preparation of this report, • Assumptions, conditions, and qualifications as set forth in this report, and • Data, reports, and other information supplied by Salazar and other third party

sources.

For the purpose of this report, RPA has relied on land tenure, permitting, and ownership

information provided by Salazar. RPA has not researched property title or mineral rights

for the Curipamba Project and expresses no opinion as to the ownership status of the

property.

RPA has relied on Salazar for guidance on applicable taxes, royalties, and other

government levies or interests, applicable to revenue or income from the Project.

Except for the purposes legislated under provincial securities laws, any use of this report

by any third party is at that party’s sole risk.

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4 PROPERTY DESCRIPTION AND LOCATION The Curipamba property is located in the foothills of the Cordillera Occidental of the

Andes and straddles the boundaries of Bolivar and Los Rios provinces of Ecuador

(Figure 4-1). It is located immediately east of the town of Ventanas and approximately

150 km southwest of Quito, the capital of Ecuador. The property is located in UTM

PDSA 17S Coordinates at 681,000E, 9,842,000N and 702,000E and 9,869,000N.

MINERAL TENURE The Curipamba property is comprised of seven contiguous concessions totalling

30,327.18 ha. The concessions are named, from north to south: Las Naves 1, Las

Naves 2, Las Naves 5, Las Naves, Las Naves 3, Jordan 1, and Jordan 2. The block

measures 26 km north-south and 14 km east-west (Figure 4-2).

The Las Naves concession was previously owned by Ivan Leiva and transferred to

Amlatminas S.A. (Amlatminas), a private company owned by Fredy Salazar, president

and CEO of Salazar. The property agreement dated March 10, 2006, stipulated that

Amlatminas would pay Ing. Ivan Wilson Leiva Santillan US$20,000 on or before June 30,

2006, US$25,000 on or before June 30, 2007, US$30,000 on or before June 30, 2008,

and US$500,000 on or before June 30, 2009. All the payments were made and

Amlatminas gained a 100% interest in the property. The Las Naves concession was

transferred to Curimining S.A. (Curimining) in September 2006 and subsequently to

Salazar. The other six concessions were transferred from Amlatminas, which acquired

them from the government of Ecuador, to Curimining and subsequently to Salazar.

In Ecuador, exploration and mining activities are broken down into four phases:

• exploration, 4 years maximum

• advanced exploration, 4 years maximum

• economic evaluation, 2 years maximum

• exploitation, 25 years, renewable

According to Ecuadorian Mining Law (as published in the official register on January 29,

2009), exploitation concessions have a term of 25 years and may be approved for

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renewal for successive 25-year periods provided that the registered concession holder

gives a notice and files a work and investment plan before the expiry date.

A number of permits, as outlined in the Mining Law, are required prior to initiation of

exploration activities, including an Environmental Impact Assessment (EIA), an

archaeological/cultural heritage permit, and a water use permit.

The Mining Law requires that the company pay 2.5% of the minimum salary, which is

US$264, or US$6.60 per ha per year for the initial four year exploration phase. In the

second four-year period, i.e., advanced exploration, the rate increases to 5%, or

US$13.20 per ha per year, and in the exploitation phase, the fee will be 10% of the

minimum salary on a maximum of 5,000 ha (US$132,000).

There is no maximum number of concessions for each concessionaire, but there is a

limit of 5,000 ha per concessionaire in the exploitation phase. Mining royalties have

been set at a minimum of 5% of mineral sales. No back-in rights are applicable. The

base sales price for minerals is open to “negotiation” where mining is conducted

pursuant to an exploitation contract. The following taxes are applicable to mining

activities:

• 25% income tax.

• 15% profit sharing (3% workers and 12% social projects).

• 70% of windfall revenue (basis for application not yet determined).

• 12% VAT. VAT on exportation activities is not subject to refund in case of export.

• Accelerated depreciation subject to special approval.

To date, all exploration activity, except preliminary prospecting, has been carried out on

the Curipamba South concessions. An EIA has been completed and accepted, effective

December 15, 2009, by the Ecuador Ministry of the Environment for the Curipamba

South concessions.

The property status is summarized in Table 4-1.

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TABLE 4-1 PROPERTY STATUS Salazar Resources Ltd – Curipamba Project

Concession Area (ha) Recording

Date Expiry Date

Fees Required US$/year Status

JORDAN 1 4,900 26/10/2006 26/10/2036 64,680.00 Good standing JORDAN 2 4,627.18 11/04/2006 11/04/2036 61,078.78 Good standing LAS NAVES 1,460 18/02/2003 18/02/2033 19,272.00 Good standing LAS NAVES 1 4,900 19/08/2005 19/08/2035 32,340.00 Good standing LAS NAVES 2 4,900 19/08/2005 19/08/2035 64,680.00 Good standing LAS NAVES 3 4,840 19/08/2005 19/08/2035 63,888.00 Good standing LAS NAVES 5 4,700 03/02/2006 03/02/2036 31,020.00 Good standing TOTAL 30,327.18

Access for exploration requires permission from surface rights owners. Permission for

exploration has been obtained for current exploration areas within the Project area.

Subsequent permission or outright purchase will be required for exploitation of mineral

resources. In cases where direct agreement with the property owner cannot be

obtained, the Minister of Mines and Petroleum of Ecuador will act as mediator.

The locations of the El Domo deposit and other mineralized zones are indicated on

Figure 4-2. The location of a kaolin mine located on a separate block which is not

owned by Salazar is shown in Figure 4-2. The kaolin deposit is surrounded by Jordan 2

concession.

An EIA report has been prepared and accepted by the Ministry of the Environment,

allowing exploration to be initiated (Table 4-2, Item 3). During the negotiation for an

exploitation licence, the concessionaire must obtain a further EIA prior to commencing

exploitation. Permits required and their status are summarized in Table 4-3.

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TABLE 4-2 PERMIT STATUS Salazar Resources Ltd. – Curipamba Project

No. Date Type document Document Authorized Company Status 1 16/11/2007 Survey Approval of EIA for exploration for the

following concessions: Las Naves; Las Naves 1, 2, 3, 4, and 5; Jordan; Jordan 1, 2, 3, and 4

Subsecretary of Environmental Protection; Ministry of Mines and Petroleum

Approved

2 07/06/2009 Certificate Certificate of Intersection of the National System Protection Areas

Ministry of Environment OK, no conflict with protected area

3 02/10/2009 Survey Update of EIA, for exploration; on

15/12/2009, Official registry date Ministry of Environment Approved

4 14/01/2010 Permits Water permit for use of water for exploration, Request No. 1

National of Secretary of Water

Approved

5 Permit Water permit for use of water for exploration, Request No. 2

National of Secretary of Water

OK, permit pending

6 30/03/2010 Patent payments Ministry of Natural and Non-renewable Resources

Completed

7 Substitution of

mining titles and patent payments

Substitution of mining titles for 25 years for concessions

Ministry of Natural and Non-renewable Resources

Granted

7-1 27/04/2010 Jordan 1, Code 700918 Ministry of Natural and

Non-renewable Resources

Granted

7-2 15/03/2010 Jordan 2, Code 200652 Ministry of Natural and


Granted

7-3 15/03/2010 Las Naves, Code 200508 Ministry of Natural and


Granted

7-4 15/03/2010 Las Naves 1, Code 200627 Ministry of Natural and


Granted



Granted



Granted



Granted

8 April-May

2010 Socialization Interministry Commission

Socialization and presentation of Curipamba Sur by Ecuadorian State Authorities. (1) Echeandia 26/04/2010; (2) El Congreso 27/04/2010; (3) San Luis de Pambil 28/04/2010; (4) Las Naves 29/04/2010; and (5) Jerusalem 12/05/2010

Ministry of Natural and Non-renewable Resources; National Secretary of Water; Ministry of Environment; Subsecretary of the Communities

Completed

9 03/06/2010 Permit Final Authorization for restart of activities -

Advanced Exploration Phase Ministry of Natural and Non-renewable

Granted

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No. Date Type document Document Authorized Company Status Resources

10 Certificates Fulfillment with Art. 26 of the New Mining

Law

10-1 09/04/2010 Certificate National Office of Civil

Aviation Granted

10-2 07/05/2010 Certificate Ministry of Defense Granted

10-3 02/06/2010 Certificate Superintendence of Telecommunications

Granted

10-4 10/06/2010 Certificate National Office of

Hydrocarbons Granted

10-5 28/05/2010 Certificate Ministry of Transportation

and Public Works Granted

10-6 21/06/2010 Certificate National Institute of

Cultural Heritage Granted

10-7 16/06/2010 Certificate Ministry of Electricity and

Non Renewable Resources

Granted

11 13/05/2011 License ENVIRONMENTAL LICENCE,

Environmental Auditing of EIA 2010 for Curipamba Sur 3 (Concessions Las Naves 1 and Las Naves 2).

Ministry of Environment Granted

12 13/05/2011 License ENVIRONMENTAL LICENSE:

Environmental Auditing of EIA 2010 for Curipamba Sur 2 (Concessions Las Naves 5 and Jordan 1).


13 12/05/2011 License ENVIRONMENTAL LICENSE:

Environmental Auditing of EIA 2010 for Curipamba Sur 1 (Concessions Las Naves, Las Naves 3 and Jordan 2).


14 30/03/2011 Reports Annual Exploration Reports of the

Curipamba concessions: Las Naves, Las Naves 1, Las Naves 2, Las Naves 3, Las Naves 5, Jordan 1, Jordan 2) and the other project concessions: MENDEZ PROJECT: Limon 1, Limón 2, RUMIÑAHUI: Bettys, Rumiñahui,: Santiago

ARCOM (Regulatory and Mining Control Agency)

Submitted

15 30/03/2011 Patent payments Ministry of Natural and

Non Renewable Resources

Completed

Quito

IslaPuna

Rio Patia

Rio Mira

Rio Coca

Rio Caquera

RioPuturnayo

Rio San Miguel

Rio Napo

Rio Curaray

Rio Tigre

Rio

Santia

go

Rio

Cen

apa

Rio C

hira

RioMaranon

Rio

Zam

ora

RioPastaze

Rio

Esm

eraldas

Rio

Daule

Pacific

Ocean

Golfo de

Guayaquil

Pasto

Florencia

Ipiales

Santa Elena

Pasaje

Zaruma

Santo Domingode los Colorados

Otavalo

Mocoa

Chone

Manta

Salinas

Posorja

Tumbes

PuertoBolivar

Turnaco

San Lorenzo

Popayan

Puerto Asis

Puerto Misahualli

Montalvo

Baeza

Quavedo

BorjaMacara

Talara

Sullana

Piura

Paita

Gualaquiza

Puerto Franciscode Orelana(Coca)

NuevoRocafuerte

Esmeraldas

Tulcan

Ibana

Nueva Loja

Portoviejo

Latacunga

Babahoyo

Guaranda

Ambato

Puyo

Macas

Riobamba

Azogues

Guayaquil

Cuenca

Machala

LojaZamora

Tena

Peru

Colombia

Ecuador

80° 78° 76°

2°

0°

2°

4°

80° 78° 76°

2°

0°

2°

4°

CURIPAMBA PROJECT

Legend:

Railroad

Road

National Capital

International Boundary

Provincial Capital

Major City

0

0

50

50

100 Kilometers

100 Miles

N

November 2011

Curipamba Project

Location Map

Salazar Resources Ltd.

Ecuador

Figure 4-1

4-6

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LAS NAVES 5

LAS NAVES 2

LAS NAVES

LAS NAVES 3

LAS NAVES 1

JORDAN 2JORDAN 1

Las NavesVillage

Zapotal

680,000 690,000 700,000 710,000

9,8

70,0

00

9,8

60,0

00

9,8

50,0

00

685,000 695,000 705,000

9,8

45,0

00

9,8

65,0

00

9,8

55,0

00

680,000 690,000 700,000 710,000685,000 695,000 705,000

9,8

70,0

00

9,8

60,0

00

9,8

50,0

00

9,8

45,0

00

9,8

65,0

00

9,8

55,0

00

N

0 2 10

Kilometres

4 6 8

Salazar Resources Concession

Legend:

Other

November 2011

Curipamba Project

Concession Map


Ecuador

Figure 4-2

4-7

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5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ACCESSIBILITY The Curipamba Project is located in the Cordillera Occidental Range adjacent to the

Costa, the western coastal flatlands. Access to the area is excellent along paved roads,

which branch off at Ventanas and Zapotal from the main coastal highway which

connects Quito and Guayaquil. The international airport in Guayaquil can be reached in

a 2.5 hours drive. Access inside the area is along year-round gravel roads (former

logging roads), which connect the Salazar field office in the town of Las Naves with the

field exploration camp at El Congreso, being approximately a 30 minute drive.

Secondary roads and trails cross much of the central portion of the Project area. Most of

the zones of mineral exploration interest are accessible by secondary dirt roads and a

short traverse by foot. A few areas, in the northern part of the property, require mule

access.

CLIMATE The local climate at Curipamba is tropical, humid, and hot during most of the year. The

wet season is from November to May, with average annual rainfall between 2,200 mm

and 2,500 mm. The dry season occurs between June and October. The climate has

little or no effect on the operating season and exploration activities may be carried out

year round.

LOCAL RESOURCES The Curipamba area is near the large towns of Ventanas, Quevedo, and Babahoyo and

the city of Guayaquil where supplies and labour can be easily obtained. There are no

large gold or base metal mines operating in this part of Ecuador. Therefore contractors,

heavy mining equipment, etc., would have to be acquired elsewhere.

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INFRASTRUCTURE Except for well developed road access, there is no infrastructure in the Project area.

The national power grid is within 20 km of the Naves Central (El Domo) area. Salazar

has a field office in the town of Las Naves on the northwestern side of the Project area.

PHYSIOGRAPHY The Project area is located where the Andes meet the coastal flatlands. The

physiography is characterized by floodplains to the west and moderate to steep sloped

hills to the east, with elevations ranging from 100 MASL to 1,000 MASL in less than

seven kilometres horizontal distance.

Drainage is dominated by the strong, west flowing Suquibí and Runayacu (also called

Oncebí) rivers. All streams and rivers drain into the Pacific Ocean and have deeply

incised the mountain sides to form the east-west elongated Las Naves hill. Toward the

south, a parallel-elongated hill separates the Runayacu River from the Chazo Juan and

Echeandía river system.

The Curipamba Property is well forested. Thick grass covers areas that have been

cleared for raising livestock.

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6 HISTORY This description of the property history was taken, for the most part, from Lahti (2006).

During 1991, RTZ Mining PLC Inc (RTZ) conducted a semi-detailed reconnaissance

stream sediment survey over and adjacent to the Curipamba property by collecting 598

samples. This information was in the public domain in 2004 when Amlatminas purchased

it from the Ecuadorian government. Although more than thirty elements were analyzed,

only gold-copper and the pathfinder element arsenic, the most important elements from

an economic point of view, were plotted on maps, which also showed the drainage and

the outline of the Curipamba property. All results including those outside of the

Curipamba property were plotted. A number of anomalous areas were indicated, but

none corresponded to what are now the best known mineralized occurrences on the

property. The best copper anomalies are found on the claims north of the Rio Umbe in

the northern part of the property. In the southern two-thirds of the Curipamba property,

there are no significant areas of copper enrichment including the ground with gold

bearing outcrops. Only scattered samples with gold concentrations ranging from 21 ppb

to 200 ppb were indicated in the bottom two-thirds of the Project.

In 2003 Las Naves claims were taken by Ivan Leiva Santillan from the state.. In 2005

Amlatminas S.A. transfer Las Naves claims to Ivan leiva. In 2006 Fredy Salazar and

Geovani Acosta requested 15 claims to the state. In September 2006, the Curipamba

claims were transferred to Curimining owned by Fredy Salazar and Geovani Acosta.

Messrs. Salazar and Acosta subsequently agreed to sell their shares of Curimining to

Consolidated Kookaburra. Prior to being transferred to Curimining, the claims were held

by Messrs. Salazar and Mr. Acosta as Amlatminas, a private Ecuadorian company

owned by Mr. Salazar through which exploration activities on the Curipamba property

were conducted.

On March 13, 2006, Newmont Mining Corporation (Newmont) was granted a three

month exclusive access over the Curipamba property and agreed to some possible Joint

Venture (JV) terms in a Letter of Intent. Newmont conducted a semi-detailed Bulk

Leachable Extractable Gold (BLEG) stream sediment survey over the property,

collecting 225 samples. The Newmont BLEG stream sediment survey identified

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significant gold concentration in streams draining mineralized areas, however, Newmont

did not conclude a final agreement and does not retain any interest in the property.

According to Lahti (2006), the BLEG method gave a good indication of an epithermal

type gold mineralization as suggested by the distribution of stream sediment arsenic,

silver, and mercury. The method identifies the claims above the Rio Umbe to have

potential for gold and copper mineralization. Similarly, The BLEG survey identifies the

southern two-thirds of the Curipamba property to have enrichment in gold, silver,

arsenic, and to a much lesser degree copper. The enrichment of BLEG arsenic, silver,

mercury, and molybdenum gives a strong epithermal signature over and adjacent to the

gold–silver mineralization at Sesmo Sur, Las Naves Central, Roble, Caracol, and

Piedras Blancas.

On November 2007 the EIA was approved for Curipamba South and geological

mapping, geochemistry and geophysics are carried out. First phase drilling started and

continued up to April 2008 with 10,000 m in 51 drill holes, with 16 drill holes in the El

Domo deposit.

On April 18, 2008, Ecuador’s Constitutional Assembly passed a Constituent Mandate

resolution (the Mining Mandate), which provided, among other provisions, for the

suspension of mineral exploration activities for 180 days, or until a new Mining Law was

approved. In January 2009, the new Mining Law was passed into law. The new Mining

Law states that each company must negotiate an exploitation contract with the

government.

In April and May of 2008, Salazar hired Dr. Warren Pratt of Specialized Geological

Mapping Ltd. to map the area of the El Domo (Las Naves) prospect, log drill core, and

establish the volcanic lithostratigraphy (Pratt, 2008).

In June 2010, Salazar received official notice from the Minister of Mines and Petroleum

of Ecuador, authorizing the restart of its field operations. The notice granted Salazar the

right to continue its exploration program at the 100% owned Curipamba property in

Central West Ecuador, as well as its other properties throughout Ecuador, subject to

receipt of certain permits. On June 3, 2010, Salazar received its water permit and filed

an updated environmental impact study.

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In June 2009, Dr. Pratt returned to conduct geological mapping and core logging at the

Sesmo Sur prospect, about seven kilometres south of El Domo (Las Naves). The

emphasis of the visit was to map Sesmo Sur and make geological sections based on the

map and core logging. The plan was also to create a lithostratigraphy that would allow

correlation with the massive sulphide horizon at El Domo (Pratt, 2009).

In July 2009, Salazar hired Dr. Jim Franklin of Franklin Geosciences Ltd. to review the

geological attributes of the newly discovered VMS deposit and occurrences in the

Curipamba property. The objectives of the visit were to examine the overall setting of the

occurrences, review selected drill holes to provide comment on the lithologies and

principal controls on the occurrences, and to provide suggestions for further work to

constrain the controls on mineralization (Franklin, 2009).

Subsequent to September 30, 2009, the new mining regulations were implemented.

In March 2010, Salazar was reissued title to its mining properties of the Curipamba

Project by the Ministry of Non-renewable Natural Resources and Salazar has complied

with all legal requirements and regulations and with the correspondent legal process.

On June 3, 2010, the Ministry of Non-renewable Natural Resources authorized the

resumption of activities for the Curipamba Project, and with the receipt of government

authorization, Salazar’s drill program resumed.

In August 2010, Salazar commissioned Scott Wilson Roscoe Postle Associates (Scott

Wilson RPA), predecessor to RPA, to complete a resource estimate of the El Domo

deposit. Scott Wilson RPA submitted the NI 43-101 Technical Report on the Curipamba

Project to Salazar on October 8, 2010.

Drilling and exploration work completed since the October 8, 2010 Technical Report is

contained in the respective sections of this report.

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7 GEOLOGICAL SETTING AND MINERALIZATION REGIONAL GEOLOGY Geographically, Ecuador is divided into three main areas: a western coastal plain (the

Costa), a central Andean region (the Sierra), and the Amazon Basin (the Oriente) in the

east (Kerr et al., 2002). The Oriente is an extensive sedimentary basin, overlying older

cratonic basement. The Andean Sierra comprises two mountain chains separated by a

central inter-Andean valley or depression (Litherland and Aspden, 1992). To the east is

the Cordillera Real, which comprises metamorphic rocks intruded by early and mid-

Mesozoic granitoids. To the west of the inter-Andean valley, the Cordillera Occidental

predominantly consists of fault-bounded Cretaceous–Tertiary accreted oceanic terranes,

comprising basaltic volcanic and volcaniclastic rocks, which are the main focus of

economic interest for this report.

The igneous and sedimentary units in the Cordillera Occidental are grouped into several

structural terranes of which the two most important for this report are the Pallatanga and

the Macuchi (Figure 7-1). The older Pallatanga terrane consists of an early to late (?)

Cretaceous oceanic plateau suite, late Cretaceous marine turbidites derived from an

unknown basaltic to andesitic volcanic source, and a tectonic mélange of probable late

Cretaceous age (Franklin, 2009). This terrane is bounded to the east by the Calacali–

Pallatanga Fault Zone and to the west by the Toachi Fault and its southern buried

extension, the Chimbo lineament. The younger Macuchi terrane was accreted against

the Pallatanga continental margin during Eocene time with final closure of the Macuchi

back-arc basin probably in Late Eocene. Rocks in the Macuchi terrane comprise a

basaltic to andesitic volcanosedimentary island arc sequence. It may be significant that

the Macuchi terrane contains more abundant basalt; it is also considered to be a

primitive arc-related volcanic sequence, in comparison to the Pallatanga terrane, which

has more evidence of a continental influence in the composition of its volcanic rock.

Back-arc systems that are more primitive tend to have formed in deeper-water

extensional basins, and thus have higher potential for the occurrence of VMS deposits

(Franklin, 2009).

Source: C. Kerr et al., 2002.

La Plata Cu-Zn

Macuchi Cu-Zn

CURIPAMBACu-Zn-Au

N

November 2011

Curipamba Project

Regional GeologyMap of Ecuador


Ecuador

Figure 7-1

7-2

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LOCAL GEOLOGY The Macuchi Unit has been redefined by McCourt et al. (1997) as an early Tertiary

sedimentary and volcaniclastic submarine arc sequence with intercalated pillow lavas

and minor intrusions of basaltic to basaltic andesite composition. The unit is exposed on

the western side of the Cordillera Occidental between 0° and 2°30'S, and is in faulted

contact principally with the siliciclastic Paleocene to Eocene Angamarca Group to the

east, adjacent to the Pallatanga terrane (Hughes and Bermudez, 1997; McCourt et al.,

1997). To the west, the unit is buried below Quaternary deposits of the coastal plain and

has an estimated minimum thickness of 2.0 km to 2.5 km.

The main rock types in the Macuchi stratigraphy, in approximate order of abundance,

are: lithic-rich volcanic sandstones, breccias (with basaltic andesite fragments) and tuffs;

volcanic siltstones; cherts; pillow breccias and hyaloclastites; dolerites and

microporphyritic pillow basalts. Petrographically, the volcanic rocks comprise

microphenocrysts of plagioclase with varying amounts of clinopyroxene, amphibole, and

olivine microphenocrysts set in an altered groundmass of plagioclase, opaque minerals,

amphibole, chlorite, and some glass. Geochemically, the Macuchi volcanics are

primitive arc lavas with locally depleted light rare earth elements (Kerr et al., 2002).

The importance of the Macuchi lithologies is that they host VMS centres of mineralization

at three locations along the Cordillera Occidental in Ecuador, namely Curipamba,

Macuchi, and La Plata (Figure 7-1) from south to north. The three centres are spaced

sub-equally apart, a feature noted in ancient belts as well as modern back-arc

hydrothermal centres. The distance from La Plata to Macuchi is 65 km, and that from

Macuchi to Curipamba is about 50 km. Little is known about the overall structure of the

Macuchi arc. It is broadly folded and probably thrust faulted near La Plata (where the

mineralization occurs on the nose and eastern flank of an upright to slightly overturned

thrust sheet) and there is little data on Macuchi. Curipamba is nearly flat lying (dips 12º

to the southeast), and primarily affected by normal and strike-slip faults. The three

districts seem to occur in different parts of the Macuchi terrane, migrating from its

western side at La Plata to its eastern side at Curipamba. This may indicate some

difference in actual stratigraphic position of these districts, or else a difference in

structural style. The greater abundance of Tertiary subvolcanic intrusions near

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Curipamba may indicate that this area represents an earlier, structurally deep part of the

unit (Franklin, 2009).

PROPERTY GEOLOGY Until noted otherwise, the following material is taken from Pratt (2008).

The area of the Curipamba concessions with the best mapped geology is in the Las

Naves area, which has the best defined prospect at this time and a number of other

gold-rich VMS occurrences. Pratt (2008) undertook geological mapping and core

logging at the Las Naves concession and established a volcanic lithostratigraphy based

on the core from drill holes CURI-08-45 and CURI-08-46 as shown in Figure 7-2. Three

main subdivisions were defined, the Lower Acid Unit (LAU), the Massive Sulphide Unit

(MSU), and the Upper Tuffaceous Unit (UTU). According to Schandl (2009), the

apparent metamorphic grade for rocks in the area is subgreenschist facies.

Las Naves comprises areas of flat-lying strata, locally dipping approximately 12º to the

southeast, bounded by steep north-northeast and north-northwest striking faults, all of

which appear mineralized. The principal faults currently defined are El Gallo, El Domo,

Naves Chico, and Roble 1. The fault zones comprise belts of steep strata, pebble dykes

and clay-rich gouges, locally with clasts of massive sulphide. The massive sulphides

occupy a syncline with a relatively flat, or gently dipping, core and steep sides. The east

margin of this syncline is marked by the El Domo andesite intrusion, the west side by

another major andesite intrusion. Close to the contacts with both andesites, the massive

sulphides become subvertical, faulted, and broken up. It appears that the andesites

literally punched the flat beds into an almost vertical attitude and almost certainly

exploited older faults, probably the same faults that were feeders for the massive

sulphides. The history of these faults is therefore likely to be very long and complex.

The oldest rocks seen at Las Naves comprise light green to cream, flow foliated to flow

banded rhyolite at the base of the LAU. Originally glassy to very fine grained, the

rhyolite locally shows perlitic fractures overprinting the flow foliation. Inferred to be a

submarine lava flow, it also shows widespread brecciation, interpreted as autobreccia.

This unit is greater than 50 m thick.

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The rhyolite is overlain by a light green dacitic autobreccia with a mostly fragmental

texture. This is characterized by subangular blocks of fine grained, flow foliated

plagioclase-porphyritic dacite within a darker green, flow foliated and originally glassy

matrix. The rock is essentially monomictic. The clasts vary in size from a few

centimetres to at least several metres in diameter. Where freshest and least affected by

hydrothermal alteration, the rock is glassy, with perlitic fracturing and hyaloclastite. In a

few places, the dacitic breccia is more polymict and includes patches of jasper and

hematitic material. The breccia commonly contains scattered dark grey “clasts” of a fine

grained basalt or basaltic andesite. The edges of these “clasts” are sinuous and locally

appear chilled, suggesting that they are intrusive “fingers” rather than transported clasts.

The breccia has a concordant geometry, so is probably a lava flow. It is interpreted as

an autobrecciated lava flow that emanated from the collapse and lateral flow of a nearby

submarine dome. It marks the end of the major phase of submarine acid/felsic

volcanism. The thickness of dacitic autobreccia is approximately 100 m. The top is well

defined in several drill holes. In hole CURI-08-45, it is overlain by gypsum rock, followed

by pyritized and altered lapilli tuff of the MSU.

The MSU as defined spans the massive sulphide-forming event and includes both the

footwall and hanging wall to the mineralization. The total thickness is about 50 m. The

main component of the MSU are distinctive lapilli tuffs which are very polymict and

include a diverse assemblage of clasts including abundant green to purple, very fine

grained porphyritic andesite lava, vesicular amygdaloidal magnetic black basalt, green

andesite-basalt (?) devitrified glass, jasper, rare diorite, and quartz and feldspar

porphyritic rhyolite. Volcanic glass is abundant immediately above the massive sulphide

horizons. A dacite interval was originally glassy and perlitic. It displays local

hyaloclastite and peperite texture. The peperites were locally the focus for massive

sulphide replacement and there is some evidence of open spaces that were

subsequently filled by laminated sulphide. A distinctive, hard, emerald-green lapilli tuff

forms a marker horizon that has been identified in most drill holes and in several places

in the field. The MSU also includes narrow flows and high-level sills of basalt and dacite

that were broadly contemporaneous with massive sulphide mineralization.

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Sulphides, gypsum, and barite occur in several lenses immediately above the dacitic

autobreccia and are mostly hosted by lapilli tuffs of the MSU. They comprise concordant

bodies, two metres to 36 m thick that can be divided into at least five types:

1. Massive sulphide with indistinct texture. In some places, a fragmental texture

can be seen within the sulphides, suggesting that they may be formed by the replacement of lapilli tuff.

2. Sulphide-altered lapilli tuffs and peperites.

3. Transported sulphide fragments within polymict lapilli tuffs.

4. Sulphide “pseudo”-fragments within polymict lapilli tuffs.

5. Rare thinly laminated siliceous cherts with banded sulphides.

Gypsum is widespread mostly beneath, and rarely between, the massive sulphides. It

occurs as massive, bedding-parallel veins or replaces lapilli tuffs. Gypsum also occurs

in stockworks beneath some of the massive sulphides, within dacitic autobreccia.

An intriguing unit termed the fossil fault collapse breccia (FBX) occurs at El Gallo and

comprises crudely bedded polymict breccias including massive sulphide clasts up to at

least 1.5 m in diameter. These breccias are interpreted as the result of collapse of an

active fault scarp. There is evidence for a major fault (El Gallo Fault) in the vicinity. This

structure may have marked the limit of the probable graben in which the Las Naves

massive sulphides accumulated. The FBX breccias are overlain unconformably by

thickly bedded crystal tuffs and fine grained lapilli tuffs of the UTU.

The UTU is the term for the lithostratigraphy above the MSU. The top is not seen in the

area but the thickness, based on the longest intersection in a drill hole is approximately

75 m. These rocks form most of the gentle, undulating topography at Las Naves. The

unit comprises thin to medium bedded green tuffaceous mudstones, crystal tuffs, and

rare thin beds of fine grained lapilli tuff. Bioturbation (burrowing) is widespread. Some

of the beds resemble turbidites, with grading. The rocks commonly display syn-

sedimentary slumping and faulting. When fresh, the rocks are hard and green but are

commonly pale brown and deeply weathered at surface. These beds represent a period

of relative calm and distal accumulation of tuffaceous sediment after the strong tectonic

activity during development of the massive sulphides. The fine grained sediments and

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tuffs filled in the topography of an interpreted graben. The syn-sedimentary deformation

is consistent with their occurrence within a graben.

Porphyritic andesites are widespread in the Las Naves concession. They form the

northeast trending dikes intruded along the Roble 1 and El Domo fault zones and major

north-northwest striking dykes within the LAU. The northeast trending dikes have steep

contacts. The intrusion is characterized by amygdules, locally streaked out in a weak

flow foliation. The contact of the andesite intrusion along the El Domo fault is marked in

hole CURI-08-45 by a monomict breccia of chilled andesite with hyaloclastite margin.

This implies a normal intrusive contact which is apparently subvertical. There is also

widespread evidence of faulting, hydrothermal breccia, and blocks of massive sulphide

along this contact.

Figure 7-4 is a geological map of the Las Naves/El Domo area. As interpreted by Mayor

(2010), the structural framework at El Domo is gently dipping strata within a northeast

trending graben bounded by the steeply dipping Roble 1 and El Domo faults. The

graben is truncated at the southwestern boundary, against footwall rocks, at the

northwest trending Naves Chico fault zone. The graben is similarly truncated at the

northeast boundary by an unnamed fault.

Northwest-trending magnetic linears within an induced polarization (IP) anomaly are

correlated with steeply dipping faults noted in drill core. This structural framework is

consistent with the fracture pattern associated with right lateral strike slip (wrench) faults.

The graben bounding Roble 1 fault probably has a significant offset. In contrast, faults

internal to the graben appear to be steeply dipping brittle fractures, that trend northwest.

As measured on sections 5050N, 5100N, 5200N a normal fault offset of 7 m, 12 m, 15

m, 9 m, and 25 m (west side down) is estimated for selected marker horizons.

Pratt (2009) undertook geological mapping and core logging at the Sesmo Sur prospect,

approximately 6.5 km south of El Domo (Las Naves). Mineralization at Sesmo Sur was

brought in by, or closely followed, a high level dacitic andesite flow-dome. The flow

dome is probably the same age as the larger flow-dome complex (LAU) at El Domo.

The lithostratigraphy recognized at El Domo clearly extends southward to Sesmo Sur.

The sulphides at Sesmo Sur were deposited during a significant tectonic event that

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began with the eruption of a major acid flow dome. The event was marked by active

faulting and graben formation. As at El Domo, mineralization was accompanied by

bimodal (basic and acid) volcanism. Hydrothermal alteration at Sesmo Sur is noted to

be less intense and less extensive than at El Domo. Any sulphide that was produced at

Sesmo Sur may have been eroded afterward, leaving just remnants of the footwall

feeder system.

The following material, extracted from Franklin (2009), provides further insights into the

property geology and potential for VMS deposits.

Franklin (2009), visited the Curipamba Project on behalf of Salazar with objectives to

examine the overall setting of the occurrences, review selected drill holes to provide

comment on the lithologies and principal controls on the occurrences, and to provide

suggestions for further work to constrain the controls on mineralization. Franklin notes

that on a regional scale, the Curipamba area has a number of potential granitoid

subvolcanic (?) intrusions including a tonalite body southeast of El Domo. Using

Salazar’s extensive rock geochemical database and various statistical techniques, he

identified at least five sites with potential for VMS deposits using values for Au, Ag, Hg,

Sb, Cu, Pb, and Zn. One interesting aspect of the centres of hydrothermal discharge

identified by the geochemical data is their rather even spacing at intervals of

approximately six kilometres (Figure 7-3).

An important contribution from Franklin’s work is the definition of a marker unit in the

immediate hanging wall of the massive sulphides.

The Naves Central area contains a unique stratigraphic marker (grainstone breccia) that

may be used to guide exploration for additional camp-wide resources. The Naves

Central area, which contains the El Domo deposit and several significant occurrences (El

Gallo, Roble, and an unnamed northern occurrence) has a uniform and very well defined

stratigraphy. A large extensively altered dacite dome underlies the area. Its upper part

contains stringer pyrite-chalcopyrite zones. Two units of massive sulphide occur above

this alteration, each capped by a unique breccia (termed grainstone) that is a key marker

horizon. This unit was a cap rock, and formed from hydrothermally (?) induced

fragmentation of the first episode of mafic volcanism, penecontemporaneously with the

deposition of the massive sulphides. VMS-forming hydrothermal activity coincided with

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renewed mafic volcanism. Precipitation was briefly interrupted in some areas by the

incursion of a breccia flow, possibly signalling a seismic event that was responsible for

the initiation of hydrothermal activity. Although some local transport of sulphide material

is evident, for the most part this unit is volcaniclastic in origin, and locally derived. A

second pulse of similar activity generated an upper grainstone-type breccia, and

renewed hydrothermal activity. These units provide key stratigraphic markers, which

define the mineralized horizon laterally, and also may be useful in identifying fault

offsets.

The footwall lithology in the Naves Central area is a large felsic dome, which is most

likely comprised of both intrusive and extrusive phases. Its outer margins have been

strongly brecciated by in situ hydroexplosion processes, and the inner parts are locally

brecciated by hydrothermal overpressure. Hydrothermal brecciation only occurs in the

most vigorous, high-temperature systems, and is usually associated only with deposits

set in a flow-dominated regime. Such settings are associated with many of the most

productive VMS districts (e.g., Noranda, Mattagami, Kuroko, Tasmania). The great

extent of these breccias in the El Domo deposit is testament to its being a major deposit

in this district. Franklin also notes that the Sesmo Sur area appears to expose the roots

of a VMS system; the upper (stratigraphic) part with the best potential for a VMS deposit

has either been eroded away or is at a higher elevation.

Footwall alteration is intense, and an excellent guide to additional resources. Every part

of the footwall examined in Franklin’s review is strongly altered, with distinctive Na

depletion and more local Mg enrichment. Franklin recommends that a comprehensive

lithogeochemical sampling be carried out to establish the footprint of the Na depletion

zones.

Equally important is the fact that zones of gypsum and anhydrite formed adjacent to

zones of major hydrothermal discharge. These should occur primarily on the hanging

wall side of a discharging fault system, and their size should be a direct reflection of the

amount of high temperature fluid that moved up the discharge conduit.

Anhydrite/gypsum occurs adjacent to the La Plata deposit, and is a common feature in

the Kuroko deposits of Japan. Franklin recommends that a three-dimensional map be

constructed of the gypsum/anhydrite zones encountered in all holes, to determine their

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shape and distribution. This should provide an approximation of the orientation of the

discharge structure, and the longevity of hydrothermal activity.

The sulphide and precious metal compositions at El Domo have numerous unusual

features, usually associated with high temperature systems that have achieved boiling

just prior to their expulsion on or near the seafloor. The exceptionally high gold recorded

in many of the upper zones in all of the occurrences, together with the anomalous

antimony, arsenic, mercury, and bromine contents of some of the minerals, can only be

achieved by this process, which enables exceptionally efficient gold precipitation. Gold

is conserved in the vapour phase of a hydrothermal fluid, and thus may be deposited

over a much wider area than the base metals. At Curipamba, gold is generally

associated with baritic exhalite. There is a fair possibility that the gold zones may extend

laterally well beyond the base metal zones.

The hydrothermal system at Curipamba was very robust and long-lived; this translates to

excellent potential for more discoveries. The addition of chalcopyrite as a later phase

that rims pyrite, along with the presence of copper sulphosalt minerals, is indicative that

a multiphase hydrothermal system was responsible for forming the deposits. This is a

characteristic of the most robust VMS camps, and is a feature that is not present at La

Plata, for example.

In well-developed VMS camps, each camp is comprised of a cluster of deposits and

each cluster is usually separated by three to six kilometres, a feature observed in the

Curipamba area. Given the presence of multiple dacite domes, felsic and mafic

subvolcanic intrusions, numerous “exhalite” type occurrences with distinctly anomalous

gold, barite and zinc, and extensive hydrothermal alteration, the Curipamba district has

all of the features of a major district, comparable in metal content to a classic camp such

as in the Tasman Orogen or the Superior Province of Canada (Franklin, 2009). El Domo

may prove to be the most significant deposit in the area. With the structure and

stratigraphy of the Curipamba camp slowly being pieced together, target areas can be

prioritized for exploration through initial geophysical surveys and ultimately, diamond

drilling.

RESOURCE OUTLINE

CURI-57

CURI-08-047

CURI-08-046

CURI-08-044

CURI-08-030

CURI-08-032

CURI-07-018

CURI-07-015

CURI-07-016

CURI-07-017

CURI-07-014

CURI-08-034

CURI-54

CURI-65

CURI-52

CURI-08-048 CURI-62

CURI-64

CURI-56

CURI-66

CURI-53CURI-63 CURI-68

CURI-55

CURI-08-049

CURI-08-039CURI-08-036

CURI-08-043

CURI-67

CURI-58

CURI-59

CURI-60

CURI-61

CURI-08-042

CURI-08-045

CURI-08-050

CURI-08-051

CURI-08-041

CURI-08-022 CURI-08-023

CURI-08-035

CURI-08-038

CURI-08-040

CURI-08-024

CURI-08-019CURI-08-025

CURI-08-029

CURI-08-037

CURI-08-020

CURI-07-021

Line of Section

CURI-08-037

CURI-08-037

0 100 500

Metres

200 300 400

N

November 2011 Source: Salazar Resources Ltd., 2010.

Curipamba ProjectEl Domo Area

Property Geology


Ecuador

Figure 7-2

7-1

1

ww

w.rp

acan

.co

m

Post MineralAndesite

Stock

UpperTuffaceous

Unit

MassiveSulphide

Unit

LowerAcidUnit

Tuffaceous Mudstones

Massive Sulphide

Gypsum

Dacitic

Dacitic

Autobreccia

Autobreccia

Rhyolite

Basalt

Dacite

Andesitic Lapilli Tuff

EOH209.70 m

Source: Salazar Resources Ltd., 2009.November 2011

Curipamba Project

Lithostratigraphic Columns forCURI-08-45 and CURI-08-46


Ecuador

Figure 7-3

7-12

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700,000 mE

9,8

70,0

00 m

N

705,000 mE 710,000 mE 715,000 mE 720,000 mE

9,8

60,0

00 m

N9,8

50,0

00 m

N9,8

65,0

00 m

N9,8

55,0

00 m

N9,8

45,0

00 m

N

9,8

70,0

00 m

N9,8

60,0

00 m

N9,8

50,0

00 m

N9,8

65,0

00 m

N9,8

55,0

00 m

N9,8

45,0

00 m

N

700,000 mE 705,000 mE 710,000 mE 715,000 mE 720,000 mE

Sesmo Sur

Naves Central

Piedras Blancas

Santa Rosa

North

Cu in Regional Lithology Samples

2,000 to 100,000

1,000 to 2,000

200 to 1,000

0 to 200

All Others

Kilometres

1050


Curipamba Project

Distribution of AnomalousCopper in Surface Samples


Ecuador

Figure 7-4

7-13

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MINERALIZATION Pratt (2008) was the first to document and describe the Kuroko-type VMS environment

on the Curipamba concessions. He established a lithostratigraphy for the Las Naves/El

Domo area in which the MSU rests on a footwall sequence of rhyolite and dacitic

autobreccias of the LAU and is in turn overlain by the UTU. He divided the sulphide

mineralization of the MSU into five types:

1. Massive sulphide with indistinct texture. In some places, a fragmental texture can be seen within the sulphides, suggesting that they may be formed by the replacement of lapilli tuff.

2. Sulphide-altered lapilli tuffs and peperites.

3. Transported sulphide fragments within polymict lapilli tuffs.

4. Sulphide ”pseudo”-fragments within polymict lapilli tuffs.

5. Rare thinly laminated siliceous cherts with banded sulphides.

The mineralized zone at El Domo is an intact, upright, and only mildly disturbed Kuroko-

type VMS deposit. As such, it displays the characteristic zoning of the model type from

the underlying feeder pipe area through vertical and lateral variations upward to the

abrupt termination of the massive sulphides against the characteristic hanging wall

grainstone marker defined by Franklin (2005). The evolution of the hydrothermal

mineralizing system and the growth of the mineralized deposit over time account for the

spectrum of mineralization types distinguished by Pratt.

Schandl (2009) conducted a petrographic study on 17 drill core samples from the Naves

Central area and provided the first details on the mineralogy. Sphalerite, chalcopyrite,

and pyrite are the principal sulphides in the mineralized rocks from the Curipamba

prospect. Galena is less common, tennantite/tetrahedrite and covellite are minor

phases. Gold was identified within sphalerite + galena + barite mineralization, where it

occurs as minute (5 μm to 50 μm) inclusions in sphalerite. The colloform banded

sphalerite also contains an abundance of large, partly dissolved inclusions of skeletal

galena. Careful microscopic examination reveals that gold was introduced to sphalerite

via fractures with late chalcopyrite. Minute gold also occurs on the rim of some galena

and is intergrown with some chalcopyrite. The galena is partly replaced by tennantite

and is rimmed and cross-cut by chalcopyrite veinlets. Two small grains of gold were also

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identified in a late carbonate veinlet that cross-cuts the sphalerite. The sphalerite is a

pure Zn end-member with little or no iron content. In a number of samples, sphalerite is

colloform banded and, as some pyrite, often has framboidal texture. Textural evidence

suggests that galena was more or less contemporaneous with sphalerite, and both post-

dated the pyrite. Tennantite and tetrahedrite represent a relatively minor phase and both

crystallized at the expense of galena and less commonly, pyrite. Chalcopyrite was the

last sulphide to crystallize in the polymetallic assemblage. In some samples fragmented

pyrite and sphalerite are “flooded” and partly replaced by massive chalcopyrite. Locally

chalcopyrite is stained to an unusual purple/blue color. Microprobe analysis shows that

in these domains the chalcopyrite has an unusual chemistry, and contains 2.2 wt% to

3.7 wt% Br. Galena occurs as a skeletal inclusion in chalcopyrite and as replacement

after pyrite. It contains inclusions of, and can be partly replaced by, tennantite and

tetrahedrite. Covellite and chalcocyanite occur within sediments. Covellite forms a rim on

detrital sphalerite and some pyrite, and chalcocyanite (anhydrous Cu-sulphate) is

disseminated through the matrix. Barite is the principal gangue mineral (Schandl, 2009).

Drilling has not yet defined the lateral dimensions of the El Domo deposit. The resource

estimate reported in this report, defined by 18 drill holes, pertains to a north-south

oriented, crescent shaped mineralized zone with maximum north-south and east-west

dimensions of 550 m and 220 m respectively (Figure 7-2). The deposit is open to the

north, to the southeast, and possibly to the east across the andesite dike. As currently

defined, there is a Main Zone of mineralization containing 90% of the resource and in the

hanging wall of that, two small zones designated HW North and HW South.

Some aspects of the distribution of sulphides were presented above in the context of the

role of the grainstone units. The El Domo deposit is zoned in an almost textbook style,

with an upper “cap” of barite, enriched variably in silica sphalerite, galena, and gold.

This cap in part involves replacement or infilling of the lower part of the grainstone, as

noted above. This is underlain by a zinc-rich massive sulphide zone, consisting of low

iron sphalerite, some sulphosalts, barite, and pyrite. Beneath that zone, the sulphide

zone is strongly pyritic, and has superimposed chalcopyrite. The base of the sulphide

section is typically strongly silicified, with semi-massive pyrite and chalcopyrite as

disseminations and stringer veins. Below that is the alteration in an associated stringer

mineralization noted above. It also has two cycles, each consisting of massive sulphide

overlain by sulphide-impregnated grainstone. The sulphides include in situ brecciated

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zones, which appear to have been caused by some form of collapse (possible anhydrite

dissolution), and the void space was infilled by sphalerite and in some cases

chalcopyrite as well. This brecciation replacement texture is common in many massive

sulphide mounds, which grow by “displacement” or expansion, and the core of a mound

is constantly impregnated by high temperature hydrothermal fluid, displacing the lower

temperature minerals outwards. It is thus possible to form a copper-rich core to a

massive sulphide zone that apparently transects the deposit. Some samples of massive

sulphide in hole CURI0-08-48 display ovoid features that may be replaced tube worms

that have become incorporated in a growing sulphide mound on the seafloor (Franklin,

2009).

The sulphide and precious metal compositions have numerous unusual features, usually

associated with high temperature systems that have achieved boiling just prior to their

expulsion on or near the seafloor. The exceptionally high gold grades recorded in many

of the upper zones in all of the occurrences, together with the anomalous antimony,

arsenic, mercury, and bromine contents of some of the minerals, can only be achieved

by this process, which enables exceptionally efficient gold precipitation. Gold is

conserved in the vapour phase of a hydrothermal fluid, and thus may be deposited over

a much wider area than the base metals. At Curipamba, it is generally associated with

baritic exhalite. There is a fair possibility that the gold zones may extend laterally well

beyond the base metal zones (Franklin, 2009).

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8 DEPOSIT TYPES According to Franklin (2009), the Curipamba district is the southernmost of three

significant massive sulphide camps in the Eocene volcanic arc of Ecuador, and one of

about a dozen districts in the South American Andean orogen. The VMS deposits vary

in age from mid-Cretaceous to early Eocene, and all occur in back-arc (extensional)

volcanic dominated basins.

VMS deposits, also known as volcanic-associated, volcanic-hosted, and

volcanosedimentary-hosted massive sulphide deposits, are major sources of Zn, Cu, Pb,

Ag, and Au, and significant sources for Co, Sn, Se, Mn, Cd, In, Bi, Te, Ga, and Ge.

They typically occur as lenses of polymetallic massive sulphide that form at or near the

seafloor in submarine volcanic environments, and are classified according to base metal

content, gold content, or host-rock lithology. There are over 800 VMS deposits known

worldwide. They are discovered in submarine volcanic terranes that range in age from

3.4 Ga to actively forming deposits in modern seafloor environments.

The most common feature among all types of VMS deposits is that they are formed in

extensional tectonic settings, including both oceanic seafloor spreading and arc

environments. Most ancient VMS deposits that are still preserved in the geological

record formed mainly in oceanic and continental nascent-arc, rifted arc, and back-arc

settings. Primitive bimodal mafic volcanic-dominated oceanic rifted arc and bimodal

felsic-dominated siliciclastic continental back-arc terranes contain some of the world’s

most economically important VMS districts.

Most, but not all, significant VMS mining districts are defined by deposit clusters formed

within rifts or calderas. Their clustering is further attributed to a common heat source that

triggers large-scale subseafloor fluid convection systems. These subvolcanic intrusions

may also supply metals to the VMS hydrothermal systems through magmatic

devolatilization. As a result of large-scale fluid flow, VMS mining districts are commonly

characterized by extensive semi-conformable zones of hydrothermal alteration that

intensifies into zones of discordant alteration in the immediate footwall and hanging wall

of individual deposits. VMS camps can be further characterized by the presence of thin,

but really extensive, units of ferruginous chemical sediment formed from exhalation of

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fluids and distribution of hydrothermal particulates (Galley et al., 2005). Figure 8-1

illustrates a hypothetical cross-section of a VMS deposit.

The idealized, undeformed, and unmetamorphosed Archean VMS deposit, as

exemplified by the Matagami deposits in Quebec, typically consists of a concordant lens

of massive sulphides, composed of 60% or more sulphide minerals (pyrite-pyrrhotite-

sphalerite-chalcopyrite with associated magnetite), that is stratigraphically underlain by a

discordant stockwork or stringer zone of vein-type sulphide mineralization (pyrite-

pyrrhotite-chalcopyrite and magnetite) contained in a pipe of hydrothermally altered rock

(Sangster and Scott, 1976). The upper contact of the massive sulphide lens with

hanging wall rocks is usually extremely sharp, while the lower contact is gradational into

the stringer zone. A single deposit or mine may consist of several individual massive

sulphide lenses and their underlying stockwork zones. It is thought that the stockwork

zone represents the near-surface channel ways of a submarine hydrothermal system

and the massive sulphide lens represents the accumulation of sulphides precipitated

from the hydrothermal solutions, on the sea floor, above and around the discharge vent

(Lydon, 1990). VMS deposits are commonly divided into Cu-Zn, Zn-Cu, and Zn-Pb-Cu

groups according to their contained ratios of these three metals (Galley et al., 2005).

Most Canadian VMS deposits are characterized by discordant stockwork vein systems

or pipes that, unless transposed by structure, commonly underlie the massive sulphide

lenses, but may also be present in the immediate hanging wall strata. These pipes,

comprised of inner chloritized cores surrounded by an outer zone of sericitization, occur

at the centre of more extensive, discordant alteration zones. The alteration zones and

pipe systems often host stringer chalcopyrite-pyrite/pyrrhotite ± Au and may extend

vertically below a deposit for several hundred metres or may continue above the deposit

for tens to hundreds of metres as a discordant alteration zone (Ansil and Noranda

deposits). In some cases, the proximal alteration zone and attendant stockwork/pipe

vein mineralization connects a series of stacked massive sulphide lenses (Amulet,

Noranda, LaRonde, and Bousquet deposits), representing synchronous and/or

sequential phases of mineralization during successive breaks in volcanic activity (Galley

et al., 2005).

Sericite-quartz

Chalcopyrite-pyrrhotite-pyrite

Pyrite-sphalerite-chalcopyrite

Pyrite-sphalerite-galena

Pyrite-sphalerite-galenatetrahedrite-Ag-Au

Chlorite-sericite

Quartz-chlorite

Barite (Au)

Carbonate/gypsum

1.3% Cu

6.1% Zn

1.8% Pb

123 g/t Ag

2.2 g/t Au

Average 5.5 Mt

Median 14.2 Mt

100 m

Felsic flow complex

Flows or volcaniclastic strataBIMODAL-FELSIC

Chalcopyrite-pyrite veins

Canadian gradeand tonnage

Ma

ssiv

e

Detrital

November 2011 Source: A.G. Galley et al., 2005.

Curipamba Project

Target Model


Ecuador

Figure 8-1

8-3

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Rev. 0 Page 9-1

9 EXPLORATION Exploration work in 2007 and 2008 concentrated on the Curipamba South concessions.

This block of concessions is further subdivided into the Naves Central and Sesmo Sur

areas. The Naves Central area includes anomalies: Sesmo, Caracol, Caracol 1, Cade,

Cade 1, Cade Sur, Roble, Roble 1, El Domo, and El Gallo. The Sesmo Sur area covers

the Sesmo Sur (also called El Lobo) and La Vaquera anomalies. Geological mapping,

prospecting, and soil and stream sediment sampling were done followed by geophysical

surveys and diamond drilling.

The mapping, prospecting, and geochemical work established an initial framework for

the local geology and the various mineralized occurrences. The above noted anomalies

(target areas) were chosen for follow-up.

In late 2007 and early 2008, geophysical work was carried out on two grids cut over the

Naves Central and Sesmo Sur areas. At Naves Central, 17 line km of IP and

magnetometer surveys were carried out on lines 4300 to 6000 covering the Caracol,

Caracol 1, Cade, Cade 1, Cade Sur, El Domo, Roble East, Roble 1, Roble, El Gallo, and

El Guayabillo target areas. A total of 43 line km of IP and magnetometer surveys were

done in the Sesmo Sur area covering the La Vaquera and Agua Santa targets.

Magnetometer readings were taken every 12.5 m on the lines spaced at 100 m intervals.

The IP survey was conducted with the pole-dipole array with a receiver dipole of 50 m at

eight depth levels, in which one current electrode was placed 25 m from the first dipole

and the other, the infinite pole, at a distance of one kilometre or more from the leading

current rod. The data collected was plotted in traditional pseudosection manner at -45º

and as inversion modelled sections. Plan maps, 3D block models, and 3D isocontour

block diagrams were also constructed. Field data collection for the IP and

magnetometer surveys was performed by Geofisica Consultores del Peru. The

interpretations of the surveys were done by Buckle (2009). Figure 9-1 shows a plan map

of the IP chargeability anomalies on the Naves Central and Sesmo Sur grids.

Northwest-trending magnetic lineaments within the IP anomaly are correlated with

steeply dipping faults noted in drill core.

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Rev. 0 Page 9-2

Pseudosection plots were made of each line of IP survey displaying the chargeability,

resistivity, and metal factor values. The sections were corrected for topography, and drill

holes where applicable were plotted on the sections. Anomalous zones A through H

were selected from the plan maps of chargeability and resistivity. The anomalies are of

two types: low resistivity/high chargeability and high resistivity/high chargeability. The

high resistivity areas likely correspond to increased silicification and the superficial low

resistivities are probably the result of saprolitization. Other types of clay alteration were

noted in the drill holes, but these are unlikely to produce any significant IP/resistivity

response.

Diamond drilling of the IP targets in the Project area is described in the following section.

In late 2010 and early 2011, sedimentary stream sampling was carried out by Salazar in

the Curipamba area. Geochemical results are available for a total of 135 samples

stream samples (Table 9-1).

Soil sampling was also was carried out by Salazar with a collection of 147 samples.

Geochemical results for 79 soil samples are contained in Table 9-2.

In addition, during the same period, rock sampling was carried out in the area of the

Curipamba mineral deposit. A total of 149 rock samples were taken and only 13

samples have outstanding results. Table 9-3 shows the rock sampling geochemical

results available.

9,8

51,0

00

9,8

50,0

00

9,8

49,0

00

9,8

53,0

00

9,8

54,0

00

9,8

55,0

00

9,8

56,0

00

9,8

51,0

00

9,8

50,0

00

9,8

53,0

00

9,8

54,0

00

9,8

55,0

00

9,8

56,0

00690,000

9,8

52,0

00

695,000694,000693,000692,000691,000

690,000 695,000694,000693,000692,000691,000

N

0 500 2000

Metres

1000 1500

Source: Salazar Resources Ltd., 2009.November 2011

Curipamba Project

Naves Central and Sesmo SurIP Chargeability Anomalies


Ecuador

Figure 9-1

9-3

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Project Sample Au_FAA_ppm Ag_ppm Al_ppm As_ppm Ba_ppm Bi_ppm Ca_ppm Cd_ppm Co_ppm Cr_ppm Cu_ppm Fe_ppm K_ppm La_ppm Mg_ppm Mn_ppm Mo_ppm Na_ppm Ni_ppm P_ppm Pb_ppm S_ppm Sb_ppm Se_ppm Sn_ppm Sr_ppm Te_ppm Ti_ppm Tl_ppm V_ppm W_ppm Zn_ppmCuripamba 18000 0.028 0.2 19500 6 176 -5 3400 -1 10 18 36 31000 1300 10 3300 662 -2 400 6 489 7 300 -5 -5 -10 40 -5 1200 -5 89 -10 62Curipamba 18001 0.009 0.2 19100 -5 179 -5 3300 -1 9 24 34 31400 1200 9 3300 653 2 500 6 415 8 200 -5 -5 -10 39 -5 1000 -5 87 -10 77Curipamba 18002 -0.005 -0.2 20400 -5 169 -5 2600 -1 10 17 38 31500 1500 7 3700 636 -2 500 6 355 7 200 -5 -5 -10 34 -5 1600 -5 84 -10 80Curipamba 18003 0.032 0.5 21800 9 296 -5 3100 2 14 34 142 39200 1000 9 6800 995 3 500 10 711 36 300 -5 -5 -10 52 -5 1600 -5 98 -10 621Curipamba 18004 0.014 -0.2 14100 13 209 -5 2600 1 9 21 56 31200 1400 7 3600 640 2 300 6 328 18 500 -5 -5 -10 28 -5 800 -5 72 -10 169Curipamba 18005 0.012 0.2 14800 6 195 -5 2400 1 10 23 40 33300 1200 6 3400 706 2 300 7 360 24 200 -5 -5 -10 28 -5 900 -5 78 -10 118Curipamba 18006 0.02 0.5 23800 29 500 -5 3600 1 11 29 51 33700 1500 11 3700 930 2 500 9 581 29 400 -5 -5 -10 49 -5 1600 -5 74 -10 249Curipamba 18007 -0.005 -0.2 26700 9 214 -5 3700 -1 21 89 38 64300 600 8 3100 807 2 400 19 537 6 300 -5 -5 -10 54 -5 2300 -5 231 -10 69Curipamba 18008 -0.005 0.2 21800 8 246 -5 3300 -1 18 55 29 55600 400 10 2900 957 2 300 12 608 5 300 -5 -5 -10 54 -5 2400 -5 196 -10 70Curipamba 18009 0.016 -0.2 16200 5 149 -5 2000 -1 11 46 24 39500 1500 7 3900 897 3 400 8 243 -5 -100 -5 -5 -10 35 -5 1100 -5 87 -10 82Curipamba 18010 -0.005 -0.2 22800 -5 202 -5 3100 -1 10 21 36 35000 1500 8 5500 1095 -2 400 7 371 -5 -100 -5 -5 -10 45 -5 1100 -5 91 -10 108Curipamba 18011 -0.005 -0.2 17900 -5 133 -5 2700 -1 8 25 22 35500 1300 5 3500 823 -2 600 6 276 -5 100 -5 -5 -10 40 -5 1300 -5 86 -10 72Curipamba 18012 -0.005 -0.2 31200 8 241 -5 4000 -1 10 21 41 35700 1500 9 3600 835 -2 600 8 470 -5 200 -5 -5 -10 58 -5 1500 -5 104 -10 89Curipamba 18013 -0.005 -0.2 12100 -5 119 -5 1700 -1 7 18 22 27000 1400 8 3000 590 -2 200 5 198 6 -100 -5 -5 -10 26 -5 800 -5 72 -10 45Curipamba 18014 -0.005 -0.2 26100 -5 222 -5 3300 -1 9 23 30 40400 900 11 3200 1106 2 400 8 651 -5 200 -5 -5 -10 63 -5 1800 -5 96 -10 92Curipamba 18015 -0.005 -0.2 21000 -5 163 -5 3400 -1 9 37 22 39500 900 5 3100 780 -2 600 10 382 -5 200 -5 -5 -10 56 -5 1800 5 111 -10 91Curipamba 18016 -0.005 -0.2 14800 -5 93 -5 1200 -1 9 16 26 34800 1200 8 5900 530 -2 200 5 185 -5 -100 -5 -5 -10 25 -5 800 -5 71 -10 67Curipamba 18017 -0.005 -0.2 24300 8 199 -5 2000 -1 12 29 61 44400 1200 9 7100 905 -2 300 9 316 32 300 -5 -5 -10 38 -5 1300 -5 118 -10 170Curipamba 18018 -0.005 -0.2 12800 -5 127 -5 2600 -1 11 21 20 34800 900 5 3100 928 -2 300 5 330 8 100 -5 -5 -10 36 -5 1200 -5 96 -10 76Curipamba 18019 -0.005 -0.2 20500 -5 144 -5 2900 -1 11 43 27 34900 700 7 4100 756 -2 400 11 387 -5 300 -5 -5 -10 45 -5 1500 5 107 -10 71Curipamba 18020 -0.005 -0.2 21700 -5 140 -5 4300 -1 15 57 33 40100 700 6 4500 756 -2 700 14 394 -5 200 -5 -5 -10 56 -5 1900 -5 148 -10 53Curipamba 18021 -0.005 -0.2 29100 -5 173 -5 4400 -1 18 28 74 58700 1200 6 8100 1102 -2 500 12 420 -5 -100 -5 -5 -10 51 -5 1900 -5 211 -10 107Curipamba 18022 -0.005 -0.2 31300 -5 162 -5 4300 -1 22 54 81 69300 1000 6 10700 1209 -2 400 17 242 -5 -100 -5 -5 -10 48 -5 2000 -5 261 -10 85Curipamba 18023 -0.005 -0.2 32900 -5 147 -5 4500 -1 25 55 114 69500 1000 5 14500 1200 -2 300 20 258 -5 -100 -5 -5 -10 43 -5 1700 -5 238 -10 115Curipamba 18024 -0.005 -0.2 28000 -5 243 -5 3300 -1 19 33 74 59800 1500 7 6300 1118 3 400 11 394 -5 -100 -5 -5 -10 40 -5 1500 -5 219 -10 83Curipamba 18025 -0.005 -0.2 26100 -5 144 -5 3300 -1 18 56 50 62500 1200 6 9000 939 -2 300 22 196 -5 200 -5 -5 -10 33 -5 1800 -5 218 -10 99Curipamba 18026 -0.005 -0.2 24100 -5 164 -5 4300 -1 17 48 43 44800 1000 7 8600 1045 -2 300 25 356 6 100 -5 -5 -10 47 -5 1500 -5 125 -10 104Curipamba 18027 -0.005 -0.2 20100 -5 151 -5 3500 -1 14 46 28 43000 700 6 3400 919 -2 600 12 343 -5 200 -5 -5 -10 50 -5 2100 -5 151 -10 61Curipamba 18028 -0.005 -0.2 19500 5 191 -5 2700 -1 12 28 36 39300 900 7 3900 876 2 300 10 352 5 400 -5 -5 -10 46 -5 1700 -5 123 -10 92Curipamba 18029 -0.005 -0.2 24700 -5 183 -5 2900 -1 9 33 26 40300 1100 7 5000 899 -2 300 14 245 7 100 -5 -5 -10 44 -5 2300 -5 145 -10 89Curipamba 18030 -0.005 -0.2 16200 -5 157 -5 2600 -1 5 23 12 24100 1800 6 2200 557 -2 400 5 192 -5 -100 -5 -5 -10 39 -5 1000 -5 65 -10 58Curipamba 18031 -0.005 0.4 25500 36 293 -5 3600 2 13 27 182 44200 1300 7 4600 808 2 500 9 435 31 1800 -5 -5 -10 47 -5 1500 -5 124 -10 502Curipamba 18032 -0.005 -0.2 19200 5 231 -5 2800 -1 7 23 34 25200 2100 8 3500 703 2 300 6 294 10 400 -5 -5 -10 35 -5 700 -5 57 -10 94Curipamba 18033 -0.005 -0.2 25300 -5 195 -5 3300 -1 11 34 25 42100 1400 7 5500 946 -2 300 15 255 10 100 -5 -5 -10 46 -5 2200 5 146 -10 91Curipamba 18034 0.04 -0.2 34000 -5 245 -5 3500 -1 13 44 38 43400 1300 10 5900 804 -2 400 20 387 10 200 -5 -5 -10 53 -5 2300 -5 156 -10 91Curipamba 18035 -0.005 -0.2 27800 -5 219 -5 3000 -1 8 28 24 31500 1300 9 3200 596 -2 400 9 265 -5 200 -5 -5 -10 51 -5 1700 -5 97 -10 68Curipamba 18036 -0.005 -0.2 21300 -5 140 -5 1900 -1 12 31 25 46200 1100 5 5800 715 -2 400 8 260 -5 -100 -5 -5 -10 31 -5 1500 -5 103 -10 64Curipamba 18037 -0.005 -0.2 24900 -5 197 -5 1900 -1 18 50 82 73200 2300 6 6600 1772 3 400 14 288 13 -100 -5 -5 -10 36 -5 2200 -5 197 -10 189Curipamba 18038 -0.005 -0.2 16400 -5 90 -5 1600 -1 8 21 19 42100 1200 5 4600 745 -2 300 4 161 -5 -100 -5 -5 -10 26 -5 1200 -5 86 -10 63Curipamba 18039 -0.005 -0.2 15500 -5 91 -5 1900 -1 8 25 14 38700 700 4 4400 489 -2 300 5 188 -5 100 -5 -5 -10 31 -5 1300 -5 78 -10 47Curipamba 18040 -0.005 -0.2 18900 -5 158 -5 2600 -1 11 32 21 45900 1200 7 2900 828 -2 400 8 245 9 -100 -5 -5 -10 42 -5 1800 -5 113 -10 77Curipamba 18041 -0.005 -0.2 21000 -5 251 -5 3300 -1 12 50 23 38500 800 11 2000 648 -2 700 14 417 -5 200 -5 -5 -10 67 -5 2600 -5 132 -10 72Curipamba 18042 -0.005 -0.2 16800 -5 110 -5 2200 -1 8 23 15 35800 1400 5 3100 786 -2 300 4 262 13 -100 -5 -5 -10 32 -5 1100 -5 62 -10 89Curipamba 18043 -0.005 -0.2 14700 -5 100 -5 2000 -1 7 28 11 32300 1000 4 2800 536 -2 300 5 192 -5 -100 -5 -5 -10 28 -5 1100 -5 63 -10 47Curipamba 18044 -0.005 -0.2 12700 -5 80 -5 1700 -1 7 29 11 27500 900 4 2400 583 -2 400 4 147 -5 -100 -5 -5 -10 20 -5 900 -5 53 -10 45Curipamba 18045 -0.005 -0.2 17000 -5 129 -5 2300 -1 7 31 12 32100 1100 5 3000 594 -2 400 5 219 6 100 -5 -5 -10 36 -5 1200 -5 60 -10 50Curipamba 18046 -0.005 -0.2 19900 -5 142 -5 2400 -1 11 34 23 38500 1200 6 3200 727 -2 400 7 228 -5 -100 -5 -5 -10 36 -5 1300 -5 92 -10 64Curipamba 18047 -0.005 -0.2 22400 -5 196 -5 2600 -1 12 45 23 47800 1000 9 2300 653 -2 400 11 311 10 100 -5 -5 -10 42 -5 2200 -5 142 -10 75Curipamba 18048 -0.005 -0.2 19400 -5 188 -5 3000 -1 11 36 22 38700 1100 7 2500 721 -2 500 9 302 8 100 -5 -5 -10 48 -5 1700 -5 110 -10 68Curipamba 18049 -0.005 -0.2 24300 -5 106 -5 4000 -1 15 27 44 42500 800 4 7400 783 -2 300 8 250 -5 200 -5 -5 -10 45 -5 1500 -5 136 -10 65Curipamba 18050 0.334 0.8 25900 -5 157 -5 6400 -1 14 26 60 48000 1200 6 14200 671 -2 500 25 268 13 400 -5 -5 -10 48 -5 1900 -5 181 -10 157Curipamba 18051 0.106 0.3 23700 -5 137 -5 4000 -1 8 23 31 25900 2400 8 5400 488 -2 600 12 306 8 200 -5 -5 -10 41 -5 1000 -5 79 -10 132Curipamba 18052 0.032 -0.2 26000 21 196 -5 3500 -1 16 40 37 54300 700 6 3100 1348 -2 300 10 360 27 1100 -5 -5 -10 37 -5 1700 -5 142 -10 119Curipamba 18053 0.012 5.4 18000 15 126 -5 5800 -1 15 46 31 51100 500 5 3100 1046 -2 300 15 279 16 200 -5 -5 -10 38 -5 2100 -5 176 -10 103Curipamba 18054 0.015 -0.2 22400 15 130 -5 5700 -1 14 49 20 45300 500 5 3700 873 -2 600 13 333 -5 100 -5 -5 -10 47 -5 2500 -5 173 -10 84Curipamba 18055 0.01 -0.2 19700 8 80 -5 4600 -1 10 27 17 39500 600 3 6000 789 -2 300 7 248 9 -100 -5 -5 -10 33 -5 1600 -5 116 -10 74Curipamba 18056 0.006 -0.2 25100 7 134 -5 5000 -1 10 28 18 36200 700 4 6200 764 2 500 8 402 7 100 -5 -5 -10 54 -5 1700 -5 105 -10 93Curipamba 18057 0.078 -0.2 21600 -5 163 -5 2800 -1 16 99 134 69500 900 4 5600 595 4 600 18 417 7 200 -5 -5 -10 46 -5 2500 -5 281 -10 268Curipamba 18058 0.045 -0.2 24200 -5 212 -5 3100 -1 16 47 70 64100 1200 6 5800 658 3 700 14 486 9 300 -5 -5 -10 51 -5 2000 -5 233 -10 85Curipamba 18059 0.039 -0.2 28300 -5 241 -5 2700 -1 13 50 64 56800 800 9 3300 679 3 400 14 490 6 700 -5 -5 -10 52 -5 2100 -5 223 -10 66Curipamba 18060 0.022 -0.2 28200 -5 170 -5 2800 -1 11 44 54 53800 1100 7 3800 604 2 400 11 409 6 200 -5 -5 -10 47 -5 1900 -5 194 -10 64Curipamba 18061 0.025 -0.2 22000 -5 182 -5 1400 -1 14 50 46 104100 600 6 1300 709 3 200 13 283 -5 -100 -5 -5 -10 32 -5 2500 -5 502 -10 51Curipamba 18062 0.011 -0.2 25100 5 138 -5 2800 -1 13 66 51 75500 1300 5 4500 618 2 500 13 372 -5 200 -5 -5 -10 42 -5 2000 -5 290 -10 58Curipamba 18063 -0.005 -0.2 18500 -5 92 -5 2800 -1 13 30 74 47900 500 3 7100 491 2 400 10 191 -5 -100 -5 -5 -10 35 -5 1100 -5 188 -10 72Curipamba 18064 0.006 -0.2 21400 7 131 -5 2500 -1 16 53 69 76200 1000 5 5100 762 -2 400 12 241 11 300 -5 -5 -10 33 -5 1600 -5 306 -10 74Curipamba 18065 -0.005 -0.2 28800 5 215 -5 2800 -1 15 62 72 64600 900 7 4200 652 3 500 14 458 -5 200 -5 -5 -10 53 -5 2200 -5 261 -10 68Curipamba 18066 -0.005 -0.2 27700 -5 182 -5 2600 -1 14 50 77 64200 1100 5 6300 569 3 400 14 322 6 200 -5 -5 -10 48 -5 1800 -5 263 -10 58Curipamba 18067 -0.005 -0.2 20800 5 157 -5 1900 -1 16 42 79 63200 1100 4 6500 765 3 400 13 219 6 -100 -5 -5 -10 34 -5 1700 -5 234 -10 105Curipamba 18068 0.005 -0.2 22800 7 169 -5 3200 -1 18 44 101 57700 1100 5 6700 690 3 400 13 426 7 700 -5 -5 -10 44 -5 1400 -5 217 -10 80Curipamba 18069 -0.005 -0.2 19500 -5 138 -5 2600 -1 14 37 61 55500 900 4 5500 502 2 500 10 378 6 300 -5 -5 -10 41 -5 1400 -5 222 -10 72

TABLE 9-1 STREAM SEDIMENT SAMPLING RESULTSSalazar Resources Ltd. - Curipamba Project

ww

w.rpacan.com

Salazar R

esources Ltd. – Curipam

ba Project, Project # 1750 Technical R

eport NI 43-101 – N

ovember 7, 2011

R

ev. 0 Page 9-4

Project Sample Au_FAA_ppm Ag_ppm Al_ppm As_ppm Ba_ppm Bi_ppm Ca_ppm Cd_ppm Co_ppm Cr_ppm Cu_ppm Fe_ppm K_ppm La_ppm Mg_ppm Mn_ppm Mo_ppm Na_ppm Ni_ppm P_ppm Pb_ppm S_ppm Sb_ppm Se_ppm Sn_ppm Sr_ppm Te_ppm Ti_ppm Tl_ppm V_ppm W_ppm Zn_ppm

Curipamba 18070 0.017 -0.2 20900 6 144 -5 1800 -1 15 46 59 64800 900 6 4300 854 -2 300 12 242 16 100 -5 -5 -10 30 -5 1600 -5 252 -10 77Curipamba 18071 -0.005 -0.2 19200 -5 91 -5 3400 -1 13 75 69 85300 900 2 5200 567 3 600 12 243 -5 400 -5 -5 -10 42 -5 1700 -5 381 -10 55Curipamba 18072 -0.005 -0.2 22400 6 152 -5 1500 -1 16 30 61 75700 800 6 5500 785 -2 300 9 239 9 200 -5 -5 -10 30 -5 1200 -5 336 -10 88Curipamba 18073 -0.005 -0.2 25100 6 171 -5 2600 -1 15 35 48 45700 1100 8 5100 1100 -2 400 9 382 13 100 -5 -5 -10 40 -5 1500 -5 140 -10 91Curipamba 18074 0.076 -0.2 25600 -5 166 -5 3300 -1 14 73 72 68600 1100 5 3600 707 3 700 13 375 6 300 -5 -5 -10 53 -5 2100 -5 268 -10 75Curipamba 18075 0.096 0.2 30200 -5 154 -5 5100 -1 11 30 31 44500 1100 4 4700 812 -2 500 10 602 -5 200 -5 -5 -10 52 -5 1700 -5 106 -10 90Curipamba 18076 -0.005 -0.2 23800 -5 163 -5 2600 -1 15 22 45 61500 900 4 5200 1225 -2 200 5 206 -5 -100 -5 -5 -10 39 -5 1500 -5 162 -10 83Curipamba 18077 -0.005 -0.2 21500 -5 139 -5 2900 -1 11 28 28 47700 1100 4 4200 942 -2 400 7 375 -5 -100 -5 -5 -10 34 -5 1600 -5 121 -10 77Curipamba 18078 -0.005 -0.2 30100 6 201 -5 3200 -1 14 43 51 48900 900 9 2800 840 -2 500 10 482 16 200 -5 -5 -10 53 -5 1800 -5 147 -10 63Curipamba 18079 -0.005 -0.2 19900 -5 125 -5 1700 -1 9 47 28 47000 800 6 4500 448 -2 600 8 275 -5 100 -5 -5 -10 29 -5 1200 -5 140 -10 40Curipamba 18080 -0.005 0.2 24100 -5 234 -5 2700 -1 13 51 55 75800 1100 8 2100 804 -2 400 10 368 -5 200 -5 -5 -10 46 -5 1800 -5 243 -10 49Curipamba 18081 -0.005 -0.2 12200 -5 46 -5 1700 -1 7 38 19 35400 500 4 2900 269 -2 500 6 136 -5 300 -5 -5 -10 20 -5 800 -5 103 -10 22Curipamba 18082 -0.005 -0.2 20700 -5 84 -5 2700 -1 12 32 41 50200 800 3 7300 596 -2 500 7 375 -5 1100 -5 -5 -10 31 -5 1100 -5 124 -10 49Curipamba 18083 -0.005 -0.2 18000 -5 89 -5 1100 -1 7 16 12 19200 500 6 2100 476 -2 300 3 182 -5 -100 -5 -5 -10 17 -5 700 -5 50 -10 22Curipamba 18084 -0.005 -0.2 12800 -5 49 -5 1300 -1 5 28 8 19900 400 5 2300 306 -2 600 4 113 -5 -100 -5 -5 -10 18 -5 700 -5 48 -10 18Curipamba 18085 -0.005 -0.2 25600 -5 116 -5 4200 -1 18 31 53 52300 900 4 8900 957 -2 400 10 343 -5 100 -5 -5 -10 48 -5 1700 -5 153 -10 58Curipamba 18086 -0.005 -0.2 16400 -5 101 -5 2400 -1 11 32 30 37800 900 4 5300 811 -2 400 6 241 8 100 -5 -5 -10 31 -5 1000 -5 94 -10 82Curipamba 18087 -0.005 -0.2 17900 -5 126 -5 2300 -1 14 39 47 52000 800 5 4000 707 -2 300 10 344 -5 100 -5 -5 -10 25 -5 1500 -5 133 -10 53Curipamba 18088 0.007 0.2 15800 -5 194 -5 2700 -1 10 26 45 37500 1300 8 1700 916 -2 300 7 467 12 200 -5 -5 -10 33 -5 1400 -5 75 -10 89Curipamba 18089 -0.005 -0.2 16700 -5 159 -5 2100 -1 8 25 33 38300 1500 7 2100 471 -2 400 5 397 -5 200 -5 -5 -10 33 -5 1200 -5 76 -10 58Curipamba 18090 -0.005 -0.2 17200 -5 168 -5 2800 -1 12 28 31 39800 1300 7 2500 995 -2 300 7 368 8 100 -5 -5 -10 29 -5 1300 -5 82 -10 81Curipamba 18091 -0.005 -0.2 28700 5 204 -5 4900 -1 22 38 54 59500 700 8 5000 1189 -2 300 13 440 -5 200 -5 -5 -10 46 -5 2400 -5 185 -10 75Curipamba 18092 -0.005 -0.2 25000 -5 209 -5 3200 -1 20 70 35 77900 500 6 2900 876 -2 300 18 356 7 200 -5 -5 -10 46 -5 3000 -5 289 -10 64Curipamba 18093 0.006 -0.2 21400 -5 116 -5 3100 -1 12 35 27 34100 500 4 4800 734 -2 700 9 402 19 200 -5 -5 -10 40 -5 1400 -5 96 -10 61Curipamba 18094 0.015 -0.2 11100 -5 81 -5 1000 -1 6 12 10 20600 500 4 2800 542 -2 200 3 230 -5 -100 -5 -5 -10 16 -5 700 -5 37 -10 24Curipamba 18095 0.021 -0.2 22300 6 182 -5 2200 -1 12 24 52 40600 1100 8 5400 851 2 300 8 335 7 200 -5 -5 -10 37 -5 1400 -5 105 -10 92Curipamba 18096 -0.005 -0.2 15600 5 117 -5 1800 -1 13 25 41 41700 900 6 5300 714 -2 300 7 245 8 100 -5 -5 -10 27 -5 1200 -5 107 -10 87Curipamba 18097 0.007 -0.2 24300 -5 131 -5 3500 -1 15 34 53 45600 500 6 9400 780 -2 400 11 337 6 200 -5 -5 -10 39 -5 1600 -5 137 -10 87Curipamba 18098 0.005 -0.2 21200 -5 122 -5 3100 -1 15 37 53 45300 600 5 6600 924 -2 400 9 408 9 300 -5 -5 -10 39 -5 1500 -5 139 -10 78Curipamba 18099 -0.005 -0.2 21000 -5 152 -5 1800 -1 11 12 27 37800 1000 9 4800 1216 -2 200 3 211 11 -100 -5 -5 -10 29 -5 800 -5 80 -10 125Curipamba 18100 -0.005 -0.2 32100 8 320 -5 2100 -1 15 36 92 47300 1000 11 4000 944 4 300 13 404 14 200 -5 -5 -10 55 -5 2000 -5 131 -10 106Curipamba 18101 -0.005 -0.2 22300 -5 220 -5 3200 -1 10 51 31 43400 900 8 2600 666 -2 700 12 511 -5 400 -5 -5 -10 62 -5 2100 -5 139 -10 81Curipamba 18102 -0.005 -0.2 19400 -5 119 -5 3100 -1 14 28 41 46400 1000 5 6500 790 -2 600 8 253 6 100 -5 -5 -10 40 -5 1500 -5 133 -10 69Curipamba 18103 -0.005 -0.2 18500 -5 117 -5 2000 -1 15 27 25 54000 1400 5 3900 891 -2 300 8 195 -5 -100 -5 -5 -10 30 -5 1800 -5 152 -10 60Curipamba 18104 -0.005 -0.2 19700 -5 144 -5 1600 -1 8 23 22 27800 700 7 5800 764 -2 300 7 265 6 -100 -5 -5 -10 40 -5 1300 -5 73 -10 66Curipamba 18105 -0.005 -0.2 26000 -5 175 -5 3000 -1 11 28 44 40000 1800 7 7600 724 2 500 8 372 6 200 -5 -5 -10 54 -5 1700 -5 117 -10 93Curipamba 18106 -0.005 -0.2 20600 9 179 -5 2000 -1 13 27 33 59100 1100 7 4000 944 -2 300 9 340 9 200 -5 -5 -10 41 -5 1900 -5 146 -10 82Curipamba 18107 -0.005 -0.2 24600 -5 172 -5 2200 -1 10 30 33 45800 2300 7 7300 780 -2 400 8 332 7 200 -5 -5 -10 44 -5 1800 -5 108 -10 78Curipamba 18108 -0.005 -0.2 16500 8 134 -5 2700 -1 10 44 25 39400 700 7 1300 412 -2 400 11 358 -5 200 -5 -5 -10 33 -5 2300 -5 137 -10 70Curipamba 18109 -0.005 -0.2 27200 -5 187 -5 3600 -1 20 42 57 57600 1500 6 5000 1153 -2 300 11 346 -5 100 -5 -5 -10 34 -5 1500 -5 149 -10 77Curipamba 18110 -0.005 -0.2 19900 5 164 -5 2600 -1 14 28 33 38300 700 6 2200 732 -2 400 8 355 6 100 -5 -5 -10 30 -5 1400 -5 113 -10 58Curipamba 18111 0.025 -0.2 27300 8 186 -5 2600 -1 19 55 54 63200 400 6 1800 797 -2 300 17 387 5 200 -5 -5 -10 34 -5 3000 -5 229 -10 77Curipamba 18112 -0.005 -0.2 28400 13 202 -5 3200 -1 24 30 58 68100 500 6 2600 1426 -2 300 10 443 -5 600 -5 -5 -10 39 -5 2100 -5 211 -10 77Curipamba 18113 -0.005 0.4 34100 6 423 -5 2900 -1 25 36 47 64300 600 9 1700 1371 3 200 12 490 9 200 -5 -5 -10 59 -5 3000 -5 204 -10 73Curipamba 18114 -0.005 -0.2 26100 11 223 -5 2900 -1 22 52 46 66100 500 6 3800 867 -2 200 16 398 -5 200 -5 -5 -10 40 -5 2500 -5 246 -10 78Curipamba 18115 -0.005 -0.2 28200 10 248 -5 3700 -1 23 45 39 65600 600 8 2500 1021 -2 400 14 560 5 300 -5 -5 -10 40 -5 2800 -5 255 -10 97Curipamba 18116 0.103 -0.2 23500 -5 118 -5 4000 -1 20 57 70 64700 700 4 6200 796 -2 300 20 321 -5 200 -5 -5 -10 30 -5 2500 -5 250 -10 78Curipamba 18117 -0.005 -0.2 29500 7 150 -5 3200 -1 23 36 97 59000 600 6 9600 1068 -2 300 9 452 5 -100 -5 -5 -10 34 -5 1500 -5 159 -10 71Curipamba 18118 -0.005 -0.2 28800 8 152 -5 3500 -1 17 45 66 56100 800 6 6200 780 -2 400 14 407 6 200 -5 -5 -10 39 -5 2000 -5 188 -10 81Curipamba 18119 0.024 -0.2 35700 6 247 -5 2700 -1 16 28 106 47200 700 10 7600 507 -2 300 9 814 22 600 -5 -5 -10 29 -5 1500 -5 124 -10 249Curipamba 18120 -0.005 -0.2 25500 -5 153 -5 2800 -1 22 31 72 61200 400 7 8400 1034 -2 200 11 482 7 200 -5 -5 -10 30 -5 1800 -5 202 -10 104Curipamba 18121 -0.005 0.3 53900 8 489 -5 2700 -1 19 44 50 61700 600 18 2100 1074 2 300 15 567 8 300 -5 -5 -10 62 -5 3600 -5 188 -10 73Curipamba 18122 -0.005 0.5 53100 5 482 -5 3000 -1 15 41 45 51100 700 20 2100 1006 2 300 14 797 9 300 -5 -5 -10 70 -5 3700 -5 166 -10 80Curipamba 18123 -0.005 -0.2 72400 5 547 -5 3600 -1 21 54 50 63600 800 27 2400 1187 4 400 19 656 8 800 5 -5 -10 82 -5 4400 -5 230 -10 85Curipamba 18124 -0.005 -0.2 35400 10 303 -5 1800 -1 22 56 54 67900 500 11 1900 1011 2 200 17 366 10 600 -5 -5 -10 41 -5 3000 -5 232 -10 70Curipamba 18125 0.012 -0.2 30100 -5 205 -5 2800 -1 18 66 34 72300 400 8 2000 719 2 400 17 406 5 400 5 -5 -10 44 -5 2600 -5 335 -10 56Curipamba 18126 0.005 0.2 31200 -5 168 -5 3500 -1 17 81 31 92700 400 7 2100 595 3 600 20 388 5 400 6 -5 -10 48 -5 3000 -5 477 -10 65Curipamba 18127 -0.005 -0.2 36900 -5 186 -5 3100 -1 17 72 35 80200 500 9 2300 654 2 500 19 512 7 500 6 -5 -10 45 -5 2800 -5 394 -10 67Curipamba 18128 0.01 0.2 25900 8 156 -5 3100 -1 18 40 62 61100 1100 6 5200 675 2 400 12 418 13 300 -5 -5 -10 44 -5 1900 -5 227 -10 75Curipamba 18129 0.008 -0.2 28500 6 127 -5 4000 -1 16 43 31 51300 600 7 5700 655 2 400 14 435 5 400 -5 -5 -10 41 -5 2100 -5 198 -10 69Curipamba 18130 -0.005 -0.2 21600 -5 108 -5 4200 -1 14 27 27 45500 1000 5 6100 876 2 500 7 358 -5 600 -5 -5 -10 34 -5 1300 -5 122 -10 66Curipamba 18131 -0.005 -0.2 25000 -5 94 -5 4700 -1 18 24 52 47200 1000 4 8300 977 2 400 8 338 5 500 -5 -5 -10 38 -5 1100 -5 135 -10 82Curipamba 18132 -0.005 -0.2 36500 6 242 -5 3500 -1 23 28 54 55200 800 8 6800 1464 3 200 12 390 13 500 -5 -5 -10 53 -5 1900 -5 178 -10 120Curipamba 18133 -0.005 -0.2 30000 -5 118 -5 5500 -1 32 30 107 61400 1000 5 9900 1557 -2 400 13 288 6 400 6 -5 -10 43 -5 1800 -5 212 -10 112Curipamba 18134 0.007 -0.2 21500 -5 179 -5 4000 -1 12 19 37 40200 2100 7 6100 1010 -2 500 7 582 5 300 -5 -5 -10 40 -5 1100 -5 90 -10 84

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ovember 7, 2011

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Project Sample Sample Type Depth (m) Au_FAA_Ag_ppm Al_ppm As_ppm Ba_ppm Bi_ppm Ca_ppm Cd_ppm Co_ppm Cr_ppm Cu_ppm Fe_ppm Hg_ppm K_ppm La_ppm Mg_ppm Mn_ppmCURIPAMBA 7500 Soil 2.80 -3.20 0.05 0.3 23700 6 334 -5 2400 -1 29 19 67 59400 -1 500 11 4600 1696CURIPAMBA 7501 Soil 3.00-3.40 0.04 -0.2 27800 12 346 -5 2100 -1 23 31 73 67300 -1 600 7 2300 975CURIPAMBA 7502 Soil 4.60-5.00 0.03 -0.2 20200 18 296 -5 1300 -1 19 18 68 41600 -1 900 8 1400 1493CURIPAMBA 7503 Soil 0.80-1.25 0.05 0.5 22400 46 140 -5 900 -1 2 23 592 82100 -1 1500 6 300 201CURIPAMBA 7504 Soil 3.00-3.70 0.05 0.2 20900 27 390 -5 800 -1 10 30 326 70300 -1 800 8 600 264CURIPAMBA 7505 Soil 3.00-3.40 0.01 -0.2 14000 -5 61 -5 200 -1 8 7 12 40100 -1 1400 9 400 709CURIPAMBA 7506 Soil 4.60-5.00 -0.01 -0.2 12700 -5 81 -5 1100 -1 5 6 34 32500 -1 2900 12 1100 826CURIPAMBA 7507 Soil 5.10-5.50 0.25 0.2 8000 14 65 -5 600 -1 2 17 436 66300 -1 2200 15 300 462CURIPAMBA 7508 Soil 4.00-4.40 0.04 -0.2 23200 61 103 -5 400 -1 3 37 755 130100 -1 1400 6 300 207CURIPAMBA 7509 Soil 5.10-5.50 0.04 0.9 33300 10 283 -5 900 -1 14 29 116 39800 -1 700 7 1200 575CURIPAMBA 7510 Soil 2.30-2.60 0.02 0.3 24500 7 202 -5 2500 -1 6 22 39 44700 -1 800 12 1800 201CURIPAMBA 7511 Soil 2.60-3.00 0.03 -0.2 27700 12 162 -5 1600 -1 35 60 54 75300 -1 600 15 3900 797CURIPAMBA 7512 Soil 1.70-2.00 0.05 -0.2 46200 8 351 -5 7800 -1 44 112 61 83500 -1 600 11 10600 1179CURIPAMBA 7513 Soil 2.70-3.00 0.03 -0.2 44000 6 268 -5 2800 -1 29 114 64 76500 -1 600 14 4400 578CURIPAMBA 7514 Soil 5.80-6.20 0.01 -0.2 30000 8 193 -5 1700 -1 29 17 86 80700 -1 600 23 4700 727CURIPAMBA 7515 Soil 0.90-1.15 0.04 0.3 15600 56 147 -5 1000 -1 1 24 40 75100 -1 1400 3 300 39CURIPAMBA 7516 Soil 1.50-1.70 0.09 0.4 24700 49 275 -5 900 -1 7 27 67 54600 -1 1000 10 500 428CURIPAMBA 7517 Soil 4.60-5.00 0.05 0.2 19300 30 75 -5 1100 -1 2 56 34 41300 -1 1300 6 600 96CURIPAMBA 7518 Soil 4.20-4.60 0.01 0.3 11500 36 121 -5 1700 -1 6 68 42 32500 -1 2000 13 2400 671CURIPAMBA 7519 Soil 3.90-4.20 0.01 0.3 26100 -5 231 -5 2200 -1 10 49 31 29900 -1 700 12 1200 292CURIPAMBA 7520 Soil 2.80-3.00 -0.01 0.4 24200 -5 210 -5 1700 -1 10 20 34 43500 2 1100 6 1900 367CURIPAMBA 7521 Soil 3.00-3.20 0.01 -0.2 25600 -5 140 -5 600 -1 11 7 25 49100 -1 1000 5 1500 876CURIPAMBA 7522 Soil 2.80-3.00 0.02 -0.2 26800 -5 240 -5 1700 -1 14 14 30 43400 2 1400 9 2600 1924CURIPAMBA 7523 Soil 4.70-5.00 -0.01 -0.2 14500 -5 51 -5 900 -1 4 9 42 24700 -1 1300 13 1800 417CURIPAMBA 7524 Soil 3.90-4.20 0.02 0.3 12800 -5 241 -5 500 -1 5 32 13 31200 -1 1600 7 3900 1280CURIPAMBA 7525 Soil 2.70-3.00 0.02 -0.2 21400 8 201 -5 1400 -1 16 31 36 45600 -1 1200 8 900 1395CURIPAMBA 7526 Soil 3.20-3.50 0.02 -0.2 21400 6 70 -5 200 -1 1 21 41 57000 -1 1200 7 600 104CURIPAMBA 7527 Soil 2.70-3.00 0.04 0.3 26500 8 331 -5 1300 -1 16 24 39 49100 -1 1100 12 800 1450CURIPAMBA 7528 Soil 2.30-2.50 0.02 0.3 22100 -5 279 -5 1800 -1 12 69 28 39500 2 1600 11 2600 1164CURIPAMBA 7529 Soil 3.70-4.00 0.02 -0.2 26800 9 133 -5 1800 -1 19 25 110 51300 -1 2000 14 4600 953CURIPAMBA 7530 Standard 0.13 -0.2 25000 103 388 -5 3800 -1 10 23 31 26800 -1 4500 24 4500 740CURIPAMBA 7531 Soil 3.70-4.00 0.01 -0.2 20100 6 182 -5 1600 -1 5 27 33 32600 -1 2300 14 4100 894CURIPAMBA 7532 Soil 3.20-3.50 0.03 0.5 43100 6 595 -5 1300 -1 15 69 32 63300 -1 1100 5 900 449CURIPAMBA 7533 Soil 4.00-4.20 0.02 -0.2 15600 7 197 -5 900 -1 18 10 28 38700 1 1000 4 400 1614CURIPAMBA 7534 Soil 6.30-6.50 -0.01 8.9 13000 -5 38 -5 700 -1 6 189 25 32000 -1 1200 7 400 531CURIPAMBA 7535 Soil 5.30-5.50 0.06 -0.2 13400 17 88 -5 500 -1 6 5 48 39100 2 1800 11 900 1278CURIPAMBA 7536 Soil 5.80-6.00 0.01 -0.2 26200 8 266 -5 1000 -1 25 22 31 72300 -1 300 13 1600 2087CURIPAMBA 7537 Soil 3.80-4.00 0.02 -0.2 33900 14 74 -5 1200 -1 28 9 93 88000 -1 100 11 9700 1459CURIPAMBA 7538 Soil 2.80-3.00 0.02 -0.2 39900 6 123 -5 4300 -1 37 32 121 80900 -1 800 7 10900 1443CURIPAMBA 7539 Soil 3.30-3.50 0.01 -0.2 16800 -5 25 -5 1500 -1 5 4 10 32300 -1 300 6 5900 737CURIPAMBA 7540 Standard 1.41 69.8 5900 56 351 -5 17100 -1 8 12 3085 24500 4 2700 9 2100 419CURIPAMBA 7541 Soil 2.80-3.00 -0.01 -0.2 21200 5 232 -5 1300 -1 7 10 10 41600 -1 300 11 3700 761CURIPAMBA 7542 Soil 5.00-5.20 -0.01 -0.2 22300 9 81 -5 600 -1 3 2 4 31300 -1 600 13 2700 892CURIPAMBA 7543 Soil 3.00-3.20 0.01 0.3 30700 10 396 -5 1300 -1 35 28 39 64800 -1 600 6 1400 2730CURIPAMBA 7544 Soil 2.80-3.00 0.01 0.3 25800 6 387 -5 1800 -1 18 23 25 56800 -1 700 5 1800 1020CURIPAMBA 7545 Soil 3.80-4.00 0.01 0.2 29900 8 299 -5 2300 -1 44 43 68 85400 -1 600 5 3100 1848CURIPAMBA 7546 Soil 4.80-5.00 0.01 -0.2 16200 6 65 -5 1000 -1 9 6 25 34600 1 2200 10 2400 944CURIPAMBA 7547 Soil 3.00-3.20 0.01 -0.2 31000 10 223 -5 4000 -1 48 35 95 87200 -1 700 5 9300 1495CURIPAMBA 7548 Soil 2.30-2.50 -0.01 -0.2 23900 6 235 -5 1500 -1 8 6 18 41700 -1 1600 12 5900 1384CURIPAMBA 7549 Soil 4.20-4.50 -0.01 -0.2 13000 -5 84 -5 100 -1 2 9 9 30800 -1 1100 9 2400 1126CURIPAMBA 7550 Duplicate -0.01 -0.2 12800 -5 84 -5 200 -1 2 10 7 30700 -1 1000 9 2500 1116CURIPAMBA 7551 Soil 1.70-2.00 0.01 -0.2 11500 -5 111 -5 1200 -1 3 4 5 35000 -1 1300 8 3000 758CURIPAMBA 7552 Soil 1.70-2.00 0.01 0.2 23700 -5 243 -5 2000 -1 14 21 23 41200 -1 1000 8 3100 1182CURIPAMBA 7553 Soil 1.70-2.00 0.01 -0.2 29500 -5 266 -5 2600 -1 37 49 54 80400 1 700 5 4300 1493CURIPAMBA 7554 Soil 5.70-6.00 0.01 -0.2 38700 -5 77 -5 300 -1 41 243 94 69600 -1 700 4 17200 2349CURIPAMBA 7555 Soil 2.70-3.00 0.01 -0.2 13800 6 57 -5 200 -1 6 2 4 37000 -1 600 9 6100 950CURIPAMBA 7556 Soil 2.80-3.00 0.02 -0.2 19600 6 65 -5 1000 -1 14 7 52 48000 -1 900 12 2500 877CURIPAMBA 7557 Soil 1.30.1.50 0.01 -0.2 24600 -5 177 -5 1900 -1 10 7 16 48600 -1 1500 6 2200 1152CURIPAMBA 7558 Soil 1.80-2.00 0.02 0.4 34600 5 586 -5 2000 -1 21 27 46 54700 -1 1100 11 1400 1794CURIPAMBA 7559 Soil 3.70-4.00 0.01 -0.2 25700 -5 167 -5 700 -1 7 6 52 40400 -1 800 12 2000 1702CURIPAMBA 7560 Standard -0.01 -0.2 6000 -5 19 -5 4900 -1 5 27 20 16900 -1 300 2 1300 121CURIPAMBA 7561 Soil 6.20-6.50 0.01 -0.2 16500 -5 70 -5 100 -1 18 34 30 34200 -1 500 11 600 1480CURIPAMBA 7562 Soil 2.70-3.00 0.01 0.4 23600 -5 361 -5 1000 -1 10 13 29 46000 -1 1100 9 1100 1284CURIPAMBA 7563 Soil 2.70-3.00 0.03 0.8 30400 8 520 -5 1300 -1 17 23 57 47100 -1 1400 7 2000 2946CURIPAMBA 7564 Soil 6.90-7.00 0.02 -0.2 23700 6 255 -5 200 -1 7 15 60 43500 -1 1100 9 1400 989CURIPAMBA 7565 Soil 3.70-4.00 0.03 0.4 29800 17 315 -5 500 -1 14 27 105 71300 -1 300 5 600 529CURIPAMBA 7566 Soil 6.70-7.00 0.02 0.4 31000 21 283 -5 700 -1 6 53 75 77600 -1 300 7 500 228CURIPAMBA 7567 Soil 5.30-5.50 0.05 0.3 23800 29 418 -5 900 -1 27 23 83 67400 -1 500 6 600 1079CURIPAMBA 7568 Soil 6.20-6.50 0.03 0.4 28500 14 361 -5 1200 -1 13 34 43 68300 -1 500 6 900 410CURIPAMBA 7569 Soil 6.70-7.00 0.01 -0.2 26900 -5 363 -5 1100 -1 11 24 36 54500 -1 700 9 800 662CURIPAMBA 7570 Standard 0.11 -0.2 24900 99 385 -5 3600 -1 10 22 30 27100 -1 4100 24 4400 744CURIPAMBA 7571 Soil 4.70-5.00 0.01 -0.2 41400 -5 641 -5 1300 -1 39 92 50 69800 -1 700 6 1700 1516CURIPAMBA 7572 Soil 1.70-2.00 0.08 -0.2 14800 367 65 -5 300 -1 1 20 181 70900 2 1400 7 400 17CURIPAMBA 7573 Soil 1.60-2.00 0.15 -0.2 10300 180 62 -5 300 -1 -1 11 161 67800 -1 1000 3 100 13CURIPAMBA 7574 Soil 4.20-5.40 0.14 0.5 26800 61 147 -5 500 -1 2 19 70 50700 -1 700 19 400 181CURIPAMBA 7575 Soil 4.60-5.00 0.43 0.2 16100 115 108 -5 300 -1 -1 13 102 46300 -1 1200 6 200 32CURIPAMBA 7576 Soil 5.00-5.50 0.01 0.3 20400 8 98 -5 1100 -1 15 11 33 46500 -1 1200 10 900 914CURIPAMBA 7577 Soil 0.80-1.00 0.02 -0.2 30400 -5 397 -5 1400 -1 7 8 82 41600 -1 2100 7 4300 1739CURIPAMBA 7578 Soil 4.00-4.50 0.13 0.4 27700 6 373 -5 1100 -1 15 25 43 46800 -1 600 8 1300 2312

TABLE 9-2 SOIL SAMPLING RESULTSSalazar Resources Ltd. - Curipamba Project

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Rev. 0 Page 9-6

Project Sample Sample Type Depth (m)CURIPAMBA 7500 Soil 2.80 -3.20CURIPAMBA 7501 Soil 3.00-3.40CURIPAMBA 7502 Soil 4.60-5.00CURIPAMBA 7503 Soil 0.80-1.25CURIPAMBA 7504 Soil 3.00-3.70CURIPAMBA 7505 Soil 3.00-3.40CURIPAMBA 7506 Soil 4.60-5.00CURIPAMBA 7507 Soil 5.10-5.50CURIPAMBA 7508 Soil 4.00-4.40CURIPAMBA 7509 Soil 5.10-5.50CURIPAMBA 7510 Soil 2.30-2.60CURIPAMBA 7511 Soil 2.60-3.00CURIPAMBA 7512 Soil 1.70-2.00CURIPAMBA 7513 Soil 2.70-3.00CURIPAMBA 7514 Soil 5.80-6.20CURIPAMBA 7515 Soil 0.90-1.15CURIPAMBA 7516 Soil 1.50-1.70CURIPAMBA 7517 Soil 4.60-5.00CURIPAMBA 7518 Soil 4.20-4.60CURIPAMBA 7519 Soil 3.90-4.20CURIPAMBA 7520 Soil 2.80-3.00CURIPAMBA 7521 Soil 3.00-3.20CURIPAMBA 7522 Soil 2.80-3.00CURIPAMBA 7523 Soil 4.70-5.00CURIPAMBA 7524 Soil 3.90-4.20CURIPAMBA 7525 Soil 2.70-3.00CURIPAMBA 7526 Soil 3.20-3.50CURIPAMBA 7527 Soil 2.70-3.00CURIPAMBA 7528 Soil 2.30-2.50CURIPAMBA 7529 Soil 3.70-4.00CURIPAMBA 7530 StandardCURIPAMBA 7531 Soil 3.70-4.00CURIPAMBA 7532 Soil 3.20-3.50CURIPAMBA 7533 Soil 4.00-4.20CURIPAMBA 7534 Soil 6.30-6.50CURIPAMBA 7535 Soil 5.30-5.50CURIPAMBA 7536 Soil 5.80-6.00CURIPAMBA 7537 Soil 3.80-4.00CURIPAMBA 7538 Soil 2.80-3.00CURIPAMBA 7539 Soil 3.30-3.50CURIPAMBA 7540 StandardCURIPAMBA 7541 Soil 2.80-3.00CURIPAMBA 7542 Soil 5.00-5.20CURIPAMBA 7543 Soil 3.00-3.20CURIPAMBA 7544 Soil 2.80-3.00CURIPAMBA 7545 Soil 3.80-4.00CURIPAMBA 7546 Soil 4.80-5.00CURIPAMBA 7547 Soil 3.00-3.20CURIPAMBA 7548 Soil 2.30-2.50CURIPAMBA 7549 Soil 4.20-4.50CURIPAMBA 7550 DuplicateCURIPAMBA 7551 Soil 1.70-2.00CURIPAMBA 7552 Soil 1.70-2.00CURIPAMBA 7553 Soil 1.70-2.00CURIPAMBA 7554 Soil 5.70-6.00CURIPAMBA 7555 Soil 2.70-3.00CURIPAMBA 7556 Soil 2.80-3.00CURIPAMBA 7557 Soil 1.30.1.50CURIPAMBA 7558 Soil 1.80-2.00CURIPAMBA 7559 Soil 3.70-4.00CURIPAMBA 7560 StandardCURIPAMBA 7561 Soil 6.20-6.50CURIPAMBA 7562 Soil 2.70-3.00CURIPAMBA 7563 Soil 2.70-3.00CURIPAMBA 7564 Soil 6.90-7.00CURIPAMBA 7565 Soil 3.70-4.00CURIPAMBA 7566 Soil 6.70-7.00CURIPAMBA 7567 Soil 5.30-5.50CURIPAMBA 7568 Soil 6.20-6.50CURIPAMBA 7569 Soil 6.70-7.00CURIPAMBA 7570 StandardCURIPAMBA 7571 Soil 4.70-5.00CURIPAMBA 7572 Soil 1.70-2.00CURIPAMBA 7573 Soil 1.60-2.00CURIPAMBA 7574 Soil 4.20-5.40CURIPAMBA 7575 Soil 4.60-5.00CURIPAMBA 7576 Soil 5.00-5.50CURIPAMBA 7577 Soil 0.80-1.00CURIPAMBA 7578 Soil 4.00-4.50

Mo_ppm Na_ppm Ni_ppm P_ppm Pb_ppm S_ppm Sb_ppm Se_ppm Sn_ppm Sr_ppm Te_ppm Ti_ppm Tl_ppm V_ppm W_ppm Zn_ppm-2 200 6 383 9 -100 -5 -5 -10 29 -5 1200 -5 180 -10 682 200 10 384 11 -100 -5 -5 -10 29 -5 1000 -5 184 -10 80-2 200 5 313 16 -100 -5 -5 -10 22 -5 1100 -5 81 -10 875 -100 3 313 7 100 -5 -5 -10 15 -5 500 -5 68 -10 234 100 6 828 34 100 -5 -5 -10 16 -5 2000 -5 128 -10 160-2 100 1 179 6 -100 -5 -5 -10 7 -5 200 -5 22 -10 15-2 -100 2 184 7 -100 -5 -5 -10 17 -5 200 -5 12 -10 59-2 -100 4 646 346 -100 -5 -5 -10 10 -5 100 -5 35 17 1196 -100 6 2501 12 100 -5 -5 -10 9 -5 400 -5 105 -10 319-2 200 11 237 27 200 -5 -5 -10 18 -5 700 -5 103 -10 83-2 200 5 305 47 700 -5 -5 -10 18 -5 500 -5 102 12 49-2 200 11 493 12 -100 -5 -5 -10 22 -5 1300 -5 166 -10 82-2 100 23 407 8 -100 -5 -5 -10 45 -5 3000 -5 271 -10 922 -100 13 325 10 -100 -5 -5 -10 30 -5 2200 -5 325 -10 67-2 100 7 736 10 -100 -5 -5 -10 19 -5 1500 -5 182 -10 1004 -100 3 121 -5 100 -5 -5 -10 20 -5 400 -5 62 -10 124 -100 5 182 24 -100 -5 -5 -10 23 -5 1700 -5 103 -10 564 -100 15 81 15 -100 -5 -5 -10 10 -5 600 -5 64 -10 433 100 27 210 8 200 -5 -5 -10 23 -5 100 -5 14 -10 128-2 400 17 336 9 200 -5 -5 -10 27 -5 1900 -5 86 -10 66-2 100 7 293 6 -100 -5 -5 -10 21 -5 1100 -5 65 -10 71-2 -100 5 232 6 -100 -5 -5 -10 20 -5 700 -5 62 -10 38-2 100 6 296 7 -100 -5 -5 -10 29 -5 1400 -5 72 -10 71-2 400 2 65 -5 -100 -5 -5 -10 17 -5 200 -5 15 -10 42-2 200 15 83 -5 -100 -5 -5 -10 9 -5 200 -5 10 -10 702 100 6 339 16 -100 -5 -5 -10 23 -5 1900 -5 101 -10 562 -100 3 124 -5 100 -5 -5 -10 8 -5 400 -5 62 -10 182 -100 9 226 36 100 -5 -5 -10 24 -5 2000 -5 104 -10 662 200 28 430 7 200 -5 -5 -10 27 -5 1400 -5 71 -10 64-2 100 10 318 6 -100 -5 -5 -10 28 -5 200 -5 87 -10 1053 300 22 535 14 200 7 -5 -10 48 -5 1100 -5 63 -10 97-2 300 12 95 6 -100 -5 -5 -10 20 -5 100 -5 10 -10 924 -100 25 481 30 100 -5 -5 -10 63 -5 3000 -5 164 -10 732 -100 2 162 43 -100 -5 -5 -10 19 -5 600 -5 66 -10 393 100 81 105 6 300 -5 -5 -10 9 -5 300 -5 31 -10 23-2 -100 1 222 28 -100 -5 -5 -10 14 -5 200 -5 20 -10 109-2 -100 9 170 8 100 -5 -5 -10 22 -5 2200 -5 194 -10 54-2 100 12 319 -5 -100 -5 -5 -10 23 -5 1500 -5 291 12 85-2 200 18 183 -5 -100 -5 -5 -10 49 -5 1200 -5 232 -10 73-2 400 2 88 -5 -100 -5 -5 -10 13 -5 800 -5 50 -10 5469 300 14 336 125 11600 168 -5 -10 184 7 200 -5 18 -10 136-2 -100 4 95 6 -100 -5 -5 -10 20 -5 500 -5 31 -10 68-2 -100 2 72 -5 -100 -5 -5 -10 16 -5 300 -5 8 -10 64-2 -100 10 169 12 -100 -5 -5 -10 24 -5 2500 -5 199 -10 543 200 5 252 8 -100 -5 -5 -10 45 -5 1900 -5 123 -10 472 200 10 201 7 -100 -5 -5 -10 43 -5 2400 -5 271 -10 58-2 100 4 124 -5 -100 -5 -5 -10 15 -5 200 -5 56 -10 51-2 100 9 304 -5 -100 -5 -5 -10 36 -5 2400 -5 317 -10 63-2 100 2 194 -5 -100 -5 -5 -10 19 -5 300 -5 26 -10 83-2 600 2 90 -5 -100 -5 -5 -10 4 -5 300 -5 9 -10 92-2 600 5 90 -5 -100 -5 -5 -10 4 -5 300 -5 9 -10 93-2 100 1 104 -5 -100 -5 -5 -10 21 -5 300 -5 16 -10 77-2 300 8 314 -5 -100 -5 -5 -10 30 -5 1800 -5 92 -10 58-2 200 7 225 -5 -100 -5 -5 -10 37 -5 2200 -5 238 -10 49-2 300 60 77 -5 -100 -5 -5 -10 12 -5 200 -5 137 -10 66-2 200 -1 146 -5 -100 -5 -5 -10 6 -5 200 -5 22 -10 90-2 -100 4 164 -5 -100 -5 -5 -10 19 -5 300 -5 52 -10 63-2 100 4 248 -5 -100 -5 -5 -10 23 -5 700 -5 57 -10 46-2 200 11 713 20 100 -5 -5 -10 53 -5 3200 -5 147 -10 139-2 -100 3 232 7 -100 -5 -5 -10 20 -5 500 -5 29 -10 51-2 1600 6 397 -5 100 -5 -5 -10 23 -5 900 -5 57 -10 29-2 -100 6 118 6 100 -5 -5 -10 4 -5 400 -5 32 -10 26-2 -100 4 152 16 -100 -5 -5 -10 15 -5 1200 -5 59 -10 1033 -100 9 316 28 -100 -5 -5 -10 28 -5 1700 -5 99 -10 323-2 -100 5 85 8 100 -5 -5 -10 -1 -5 100 -5 56 -10 1692 100 9 197 14 200 -5 -5 -10 9 -5 3000 -5 197 -10 374 -100 5 349 10 200 -5 -5 -10 2 -5 2600 -5 196 -10 312 -100 4 370 30 100 -5 -5 -10 19 -5 1700 -5 160 -10 753 -100 5 446 14 -100 -5 -5 -10 32 -5 1900 -5 188 -10 593 -100 4 378 9 100 -5 -5 -10 34 -5 1500 -5 133 -10 472 300 20 533 13 200 -5 -5 -10 45 -5 1000 -5 62 -10 95-2 100 17 207 15 100 -5 -5 -10 60 -5 2100 -5 226 -10 615 100 -1 97 44 200 17 -5 -10 9 -5 -100 -5 52 13 87 -100 -1 73 17 100 5 -5 -10 8 -5 100 -5 34 -10 66 -100 3 145 52 100 -5 -5 -10 17 -5 800 -5 65 11 476 -100 -1 166 39 100 -5 -5 -10 3 -5 300 -5 57 -10 55-2 -100 3 87 28 -100 -5 -5 -10 22 -5 600 -5 52 -10 47-2 -100 5 143 10 -100 -5 -5 -10 25 -5 500 -5 29 -10 3672 -100 8 108 56 100 -5 -5 -10 22 -5 1800 -5 95 -10 218

TABLE 9-2 SOIL SAMPLING RESULTS (Cont'd) Salazar Resources Ltd. - Curipamba Project

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Project Sample Sample type Sampling Method Size Au_AA25_ppm Ag_ppm Al_ppm As_ppm Ba_ppm Bi_ppm Ca_ppm Cd_ppm Co_ppm Cr_ppm Cu_ppm Fe_ppm Hg_ppm K_ppm La_ppm Mg_ppmCuripamba 17131 Float 1 x 0.80 1.28 3.1 28700 7 14 -5 400 8 78 12 4260 >150000 -1 300 -2 27800Curipamba 17132 Float 0.70 x 0.60 0.57 -0.2 7200 17 41 -5 -100 -1 6 15 191 >150000 -1 1700 -2 700Curipamba 17133 Float 0.60 x 0.40 0.36 1.7 300 183 684 -5 200 -1 6 137 35 46200 3 -100 -2 100Curipamba 17134 Float 0.60x0.50 0.09 1.9 200 171 515 -5 500 -1 4 126 40 50600 4 -100 -2 -100Curipamba 17135 Outcrop chips 1.50x1.00 0.05 -0.2 24200 8 631 -5 900 2 7 9 160 24500 -1 3100 -2 19100Curipamba 17136 0.06 -0.2 4400 6 29 -5 1400 -1 19 69 19 85800 -1 2200 -2 300Curipamba 17137 Float 0.50x0.40 0.07 1.3 300 35 454 -5 200 -1 -1 129 24 34900 -1 -100 -2 100Curipamba 17138 0.12 0.5 3500 -5 22 -5 1100 -1 23 114 24 139900 -1 1700 -2 400Curipamba 17139 Float 0.40x0.10 1.58 4.6 900 366 409 -5 200 -1 1 113 80 92600 -1 -100 3 100Curipamba 17140 Float 0.40x0.30 0.16 3.0 3500 44 5325 -5 200 2 2 66 1289 14700 -1 1800 -2 1200Curipamba 17141 Float 0.80x0.60 0.07 0.2 4700 17 5146 -5 -100 8 2 64 300 22000 -1 2100 -2 2200Curipamba 17142 Float 0.40x0.25 1.63 11.0 3800 154 4904 -5 300 27 4 32 2279 21800 3 3200 2 200Curipamba 17143 Outcrop chips 2.00x1.00 0.08 0.3 5000 32 75 -5 700 -1 -1 42 13 12900 -1 1100 6 2300Curipamba 17144 Float 0.50x0.40 0.06 0.6 6200 10 2368 -5 300 16 4 45 722 23000 -1 2600 5 4100Curipamba 17145 Outcrop channel 0.50 de esp 0.17 0.9 5200 120 53 -5 -100 -1 5 34 25 24700 -1 2700 5 2200Curipamba 17146 Outcrop chips 2.00x1.00 0.35 1.6 7300 185 61 -5 400 2 6 38 66 29700 -1 3300 3 3700Curipamba 17147 Outcrop channel 2.00x0.10 0.03 0.7 5500 27 1405 -5 1100 3 -1 17 347 9300 -1 3500 13 600Curipamba 17148 Outcrop chips 1.50x0.30 0.14 0.6 8700 55 186 -5 1300 1 1 11 187 13400 -1 4500 17 1400Curipamba 17149 Float in situ 0.60x0.50 0.11 0.7 2700 23 798 -5 500 5 1 42 278 8100 -1 1900 6 300Curipamba 17150 Float in situ 1x0.50 0.16 1.0 2600 85 42 -5 400 5 1 77 11 8400 -1 1900 7 300Curipamba 17151 Float 0,80 x 0,50 -0.01 -0.2 2900 195 2033 -5 600 1 1 57 12 32400 19 100 8 600Curipamba 17152 Outcrop chips 2 x 1 -0.01 -0.2 23600 -5 22 -5 1000 -1 18 32 13 89700 -1 600 -2 17700Curipamba 17153 Float 0.70 x 0.60 -0.01 -0.2 5000 29 208 -5 400 -1 3 29 21 60200 -1 1500 4 100Curipamba 17154 Float 0.60 x 0.40 0.11 8.3 15300 8 17 -5 5000 -1 231 131 24100 >150000 -1 2000 6 4600Curipamba 17155 Pozo channel 1.00 x 1.00 0.02 0.2 18200 -5 155 -5 900 -1 -1 5 10 9300 -1 1100 19 400Curipamba 17156 Outcrop chips 0.50 x 1.00 0.08 1.8 28100 44 240 -5 15800 7 12 20 984 51900 -1 1900 8 20500Curipamba 17157 Float 0.60 x 0.50 0.33 436.0 4100 85 391 -5 800 17 10 75 287 23200 -1 2500 3 1200Curipamba 17158 Float 0.80 x 0.60 0.02 2.2 2900 25 1446 -5 5800 43 9 84 443 26500 1 2300 2 700Curipamba 17159 Float 0.60 x 0.40 0.20 8.7 3700 135 1733 -5 1500 20 3 52 403 23400 -1 2500 8 1100Curipamba 17160 Float 1 x 1 -0.01 0.4 6200 -5 50 -5 100 -1 2 70 844 36900 -1 2300 4 3400Curipamba 17161 Float 2 x 1.80 -0.01 0.3 12600 -5 46 -5 400 -1 2 43 605 35100 -1 2000 2 11200Curipamba 17162 Float 0.30 x 0.20 -0.01 -0.2 100 5 11 -5 100 -1 1 99 7 76000 -1 -100 -2 -100Curipamba 17163 Float 0.45 x 0.30 -0.01 -0.2 1500 -5 19 -5 100 -1 1 83 5 33000 -1 200 -2 200Curipamba 17164 Outcrop chips 1.00 x 0.50 -0.01 -0.2 16000 -5 115 -5 700 -1 5 48 4 29900 -1 1000 5 14400Curipamba 17165 Outcrop chips 1.00 x 1.00 0.03 0.4 3600 15 126 -5 200 1 1 29 3 13400 -1 2700 9 200Curipamba 17166 Outcrop chips 0.40 x 0.30 -0.01 0.4 14200 6 321 -5 8400 -1 11 33 347 39000 -1 1100 9 11600Curipamba 17167 Float 1.10 x 0.80 0.21 3.4 1900 216 190 -5 200 -1 1 70 874 68300 -1 4100 6 100Curipamba 17168 Outcrop chips 1 x 0.50 -0.01 -0.2 10700 -5 134 -5 600 -1 2 49 34 16200 -1 4000 7 10200Curipamba 17169 Outcrop Chips 2.00 x 2.00 0.41 3.9 3200 214 1547 -5 1600 3 1 54 39 16100 -1 2900 12 200Curipamba 17170 Float 0.30 x 0.40 0.02 -0.2 9400 -5 82 -5 3600 -1 10 52 65 38600 -1 1100 6 6600Curipamba 17171 Outcrop chips 0.50 x 1.00 0.11 5.3 53000 42 9810 -5 500 22 2 46 3272 8600 -1 1200 4 200Curipamba 17172 Outcrop chips 0.50 x 0.50 0.03 0.3 3000 52 104 -5 700 -1 7 3 38 62400 -1 2400 8 22700Curipamba 17173 Float 0.30 x 0.20 0.08 7.3 73000 185 679 -5 -100 -1 2 113 462 29700 -1 200 -2 -100Curipamba 17174 Float 0.30 x 0.40 0.18 8.6 86000 236 1050 -5 100 11 1 116 2612 46000 -1 -100 -2 -100

17175 -0.01 -0.2 -2000 7 13 -5 -100 -1 1 123 25 3800 -1 400 -2 -100Curipamba 17176 Float 0.60 x 0.40 -0.01 -0.2 -2000 -5 37 -5 300 -1 -1 19 5 55800 -1 2200 -2 200Curipamba 17177 Float 0.50 x 0.40 0.01 -0.2 -2000 -5 51 -5 4700 -1 6 35 115 60200 -1 200 3 9300Curipamba 17178 Float 0.50 x 0.50 0.01 -0.2 -2000 -5 63 -5 600 -1 26 18 18 80200 -1 200 3 3300Curipamba 17179 Float 0.40 x 0.30 0.02 1.5 15000 -5 236 -5 100 5 4 119 62 29000 -1 500 -2 100Curipamba 17180 Float 0.30 x 0.30 -0.01 1.1 11000 -5 103 -5 400 -1 -1 24 10 56500 -1 3000 -2 300Curipamba 17181 Float 0.50 x 0.40 0.03 0.3 3600 -5 70 -5 8400 -1 9 48 132 33800 -1 700 3 5100Curipamba 17182 Outcrop chips 2.00 x 0.30 0.03 0.4 42400 22 19 -5 25900 -1 9 27 26 39000 -1 300 3 7400Curipamba 17183 Float 0.50 x 0.30 -0.01 -0.2 2200 12 33 -5 200 -1 2 109 24 17700 -1 1300 -2 100Curipamba 17184 Float 0.20 x 0.10 0.04 8.1 4800 -5 159 -5 200 1 20 82 1577 61200 -1 1000 -2 1600Curipamba 17185 Float 0.30 x 0.20 0.07 -0.2 5100 34 81 -5 400 -1 -1 56 218 48700 -1 2300 -2 200Curipamba 17186 Float 0.50 x 0.50 0.01 0.2 3300 -5 219 -5 300 -1 10 62 21 31400 -1 2200 -2 200Curipamba 17187 Float 0.30 x 0.20 0.01 0.6 2500 -5 66 -5 400 -1 17 95 21 60500 -1 2000 -2 100Curipamba 17188 Float 0.40 x 0.40 0.02 1.0 5500 -5 36 -5 200 -1 1 17 19 >150000 -1 2100 -2 100Curipamba 17189 Float 0.40 x 0.40 0.04 1.1 3500 28 43 -5 700 -1 9 6 324 >150000 -1 800 -2 300Curipamba 17190 Float 0.30 x 0.20 0.02 27.0 12500 115 236 -5 500 -1 -1 8 609 99300 -1 7000 2 500Curipamba 17191 Float 0.50 x 0.50 0.02 0.9 9800 8 160 -5 500 -1 -1 9 8 >150000 1 3800 -2 500Curipamba 17192 Float 0.50 x 0.40 -0.01 -0.2 4800 -5 160 -5 700 -1 -1 27 6 17100 -1 2500 12 300Curipamba 17193 Outcrop chips 0.30 x 0.20 0.01 -0.2 41300 -5 19 -5 5100 -1 25 12 154 81400 -1 1000 3 38900Curipamba 17194 Float 0.40 x 0.30 0.04 37.5 6000 12 72 -5 500 -1 2 28 4174 >150000 -1 3100 -2 400Curipamba 19195 Float 1.00 x 0.50 -0.01 -0.2 5300 -5 68 -5 800 -1 -1 10 14 41900 -1 2600 -2 400Curipamba 17196 Float 0.50 x 0.30 -0.01 0.3 4400 14 100 -5 300 -1 -1 15 8 46800 -1 3000 -2 200Curipamba 17197 Float 1.00 x 0.60 -0.01 -0.2 4000 -5 52 -5 300 -1 -1 24 4 15200 -1 1700 -2 200Curipamba 17198 Outcrop chips 1.00 x 1.00 -0.01 -0.2 12500 -5 46 -5 4000 -1 5 39 9 22900 -1 1200 -2 9000Curipamba 17199 Float 0.20 x 0.30 0.31 11.8 14300 7 269 -5 600 6 3 20 1063 20200 -1 6900 2 2600Curipamba 17200 Float 0.30 x 0.30 0.09 2.3 2200 61 689 -5 300 3 -1 97 1265 69500 -1 1100 -2 100Curipamba 17201 Float 0.20 x 0.20 0.06 1.1 500 37 339 -5 -100 17 -1 112 840 64000 2 100 -2 -100Curipamba 17202 Float 0.30 x 0.20 0.43 1.9 7200 161 40 -5 200 -1 30 46 7589 >150000 -1 1100 -2 600Curipamba 17203 Float 0.40 x 0.30 0.04 0.7 4700 44 37 -5 200 -1 13 43 503 >150000 -1 1000 -2 300Curipamba 17204 Float 0.40 x 0.20 0.01 -0.2 2700 12 23 -5 100 -1 4 61 30 25300 -1 -100 -2 -100Curipamba 17205 Float 0.50 x 0.30 0.09 0.5 8300 90 118 -5 200 -1 7 71 1232 >150000 -1 3000 -2 400Curipamba 17206 Float 0.50 x 0.40 0.06 0.7 8000 238 39 -5 300 -1 28 22 533 >150000 -1 200 -2 400Curipamba 17207 Float 0.60 x 0.40 0.02 0.3 5200 8 29 -5 2300 -1 6 46 65 32700 -1 1000 3 1500Curipamba 17208 Pozo channel 1.00 x 0.20 -0.01 -0.2 42700 -5 297 -5 3100 -1 10 35 34 32800 -1 1000 12 8100Curipamba 17209 Pozo channel 1.00 x 0.30 0.01 -0.2 34400 -5 186 -5 2000 -1 16 23 38 34700 -1 1000 12 5600Curipamba 17210 Pozo chips 1.00 x 1.00 0.01 -0.2 40200 16 935 -5 1900 -1 347 129 90 135000 -1 500 15 4700Curipamba 17211 Pozo chips 0.50 x 0.50 -0.01 -0.2 50900 6 271 -5 2400 -1 29 72 58 65900 -1 800 24 14300Curipamba 17212 Pozo chips 0.50 x 0.50 0.01 -0.2 61000 14 633 -5 2800 -1 47 131 67 87500 -1 400 6 12100

TABLE 9-3 ROCK SAMPLINGSalazar Resources Ltd. - Curipamba Project

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w.rpacan.com

Salazar R




ovember 7, 2011

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Project Sample Sample type Sampling Method Size Au_AA25_ppm Ag_ppm Al_ppm As_ppm Ba_ppm Bi_ppm Ca_ppm Cd_ppm Co_ppm Cr_ppm Cu_ppm Fe_ppm Hg_ppm K_ppm La_ppm Mg_ppmCuripamba 17213 Float 0.50 x 0.40 -0.01 0.2 5900 5 73 -5 800 -1 -1 20 3 23100 -1 2900 5 300Curipamba 17214 Pozo chips 1.00 x 1.00 -0.01 -0.2 29400 -5 353 -5 2100 -1 5 20 13 24300 -1 800 19 3000Curipamba 17215 Outcrop chips 1.00 x 1.01 -0.01 -0.2 5400 6 1015 -5 200 -1 -1 12 3 16600 -1 3300 9 300Curipamba 17216 Float 0,30 x 0,20 -0.01 0.2 2500 -5 162 -5 100 -1 5 42 25 27800 -1 1000 2 -100Curipamba 17217 Float 0,70 x 0,60 -0.01 -0.2 3500 -5 76 -5 200 -1 -1 28 8 26000 -1 2100 -2 200Curipamba 17218 Float 0.90 x 1.00 -0.01 0.2 6000 -5 39 -5 900 -1 6 20 33 26600 -1 600 3 1700Curipamba 17219 Outcrop chips 0.50 x 0.50 -0.01 -0.2 19200 -5 87 -5 10700 -1 21 29 65 48600 -1 400 4 24600Curipamba 17220 Float 0.50 x 0.30 -0.01 -0.2 23300 -5 26 -5 3300 -1 15 13 31 47500 -1 800 3 26500Curipamba 17221 Outcrop vertical wall channel 3.00 x 0.30 -0.01 -0.2 4700 5 276 -5 1100 -1 2 14 5 17200 -1 3700 5 800Curipamba 17222 Float 0.40 x 0.20 0.02 -0.2 5600 17 85 -5 300 -1 14 26 36 61500 -1 500 2 800Curipamba 17223 Outcrop chips 0.50 x 0.50 -0.01 -0.2 9800 -5 184 -5 1100 -1 8 15 5 17700 -1 3300 -2 2700Curipamba 17224 Outcrop chips 1.00 x 1.00 -0.01 -0.2 23800 -5 45 -5 8500 -1 15 34 18 52700 -1 500 2 17100Curipamba 17225 Float 0.40 x 0.25 0.24 0.6 5900 378 241 -5 300 -1 4 19 34 41500 1 900 -2 200Curipamba 17226 Outcrop chips 1.00 x 1.00 -0.01 -0.2 18600 -5 17 -5 2800 -1 10 36 9 35700 -1 1000 2 14700Curipamba 17227 Outcrop chips 0.50 x 0.50 -0.01 -0.2 12200 -5 26 -5 3200 -1 12 59 271 52200 -1 400 3 5200Curipamba 17228 Outcrop chips 3 x 2 0.01 <0.2 32100 7 40 <2 3600 <0.5 34 38 161 81100 1 300 <10 25600Curipamba 17229 Float 0.30 x 0.20 <0.01 <0.2 3200 <2 210 <2 1100 <0.5 3 72 3 17300 <1 1800 <10 200Curipamba 17230 Float 0.30 x 0.20 0.01 <0.2 6700 8 70 2 300 <0.5 <1 47 8 133000 1 1900 <10 200Curipamba 17231 Outcrop chips 1.5 x 0.50 0.01 <0.2 10800 8 70 <2 600 <0.5 5 69 6 30200 <1 1100 <10 8000Curipamba 17232 Outcrop chips 1.5 x 0.50 0.01 <0.2 24700 5 70 <2 1100 <0.5 9 80 5 52800 <1 1400 <10 23200Curipamba 17233 Outcrop chips 0.50 x 2.00 0.10 <0.2 24300 192 20 2 100 <0.5 52 54 604 327000 1 1300 <10 12600Curipamba 17234 Outcrop chips 0.50 x 0.50 0.02 0.3 37700 8 33 -5 500 -1 70 49 11 >150000 -1 900 2 23500Curipamba 17235 Float 0.30 x 0.30 0.07 0.9 24400 130 51 -5 400 -1 33 77 173 >150000 -1 1000 4 1300Curipamba 17236 Float 0.40 x 0.40 0.02 0.6 20500 46 60 -5 300 -1 9 152 264 >150000 -1 1700 2 400Curipamba 17237 Float 1.50 x 0.90 0.44 0.9 3200 41 196 -5 700 13 5 48 626 22800 -1 3600 7 100Curipamba 17238 Float 0.60 x 0.50 0.16 2.6 3000 30 112 -5 400 6 2 57 471 14000 -1 3400 7 100Curipamba 17239 Float 1 x 0.30 0.19 0.7 10300 6 378 -5 600 3 3 31 311 31500 -1 2900 8 3400Curipamba 17240 Float 1.50 x 1 0.98 1.7 4200 39 159 -5 200 3 5 60 423 41200 -1 3700 5 300Curipamba 17241 Float 1.50 x 1 0.07 0.5 7700 13 94 -5 400 3 4 29 309 34000 -1 3000 6 2300Curipamba 17242 Float 1 x 0.90 0.29 1.2 2900 140 211 -5 200 1 -1 56 60 17500 -1 4400 3 100Curipamba 17243 Float 0.30 x 0.30 0.10 5.9 2500 135 361 -5 300 5 2 52 106 19200 -1 3700 4 100Curipamba 17244 Outcrop 2 x 1 -0.01 0.2 4900 32 40 -5 300 -1 1 30 29 83600 -1 1900 2 200Curipamba 17245 Outcrop 1.5 x 1 0.31 0.4 4200 11 63 -5 400 -1 2 37 20 83400 -1 2100 -2 100Curipamba 17246 Float 0.40 x 0.30 0.59 <0.2 6000 134 70 2 300 <0.5 <1 77 349 120000 <1 1500 <10 200Curipamba 17247 Outcrop?? 1 x 1 0.03 <0.2 4700 141 60 <2 300 <0.5 <1 69 136 135000 <1 1500 <10 200Curipamba 17248 Float 0.50 x 0.30 2.35 <0.2 2600 494 30 2 100 <0.5 <1 96 128 145000 2 200 <10 100Curipamba 17249 Float in situ 2.5 x 2 1.11 1.7 2600 90 110 <2 300 16.2 3 124 1425 21200 2 3100 10 100Curipamba 17250 Float in situ 2 x 2 0.98 1.2 2900 95 120 <2 100 11.2 4 103 492 21900 2 2700 <10 100Curipamba 17251 Float 1.50 x 1.50 <0.01 <0.2 14800 2 60 <2 1200 <0.5 8 45 63 35500 <1 1000 10 6100Curipamba 17252 Float 0.70 x 0.40 0.08 0.5 4200 33 90 <2 700 1.6 5 87 61 16400 <1 2800 10 500Curipamba 17253 Outcrop 0.50 x 0.30 <0.01 <0.2 46600 <2 50 2 3100 <0.5 30 54 266 86400 <1 400 <10 44800Curipamba 17254 Float 0.30 x 0.30 0.31 7.3 1700 131 390 <2 100 <0.5 6 232 180 27300 <1 300 <10 200Curipamba 17255 Float 0.80 x 0.60 <0.01 0.9 9000 65 180 <2 700 2 3 90 114 22300 1 2500 10 3300Curipamba 17256 Float 0.50 x 0.50 1.49 0.6 4400 159 170 <2 800 4 3 106 137 24500 1 2700 10 300Curipamba 17257 Float 0.40 x 0.20 8.30 1.3 500 38 490 -5 300 2 1 131 420 23300 -1 200 -2 -100Curipamba 17258 Float 0.60 x 0.40 0.04 -0.2 11000 7 252 -5 500 -1 3 27 42 34400 -1 3800 6 2100Curipamba 17259 Float 0.40 x 0.30 0.55 2.5 6100 35 150 -5 200 6 4 45 181 21000 -1 3300 4 800Curipamba 17260 Float 1.00 x 0.50 0.12 0.6 6400 20 68 -5 500 8 5 27 94 19800 -1 3800 7 600Curipamba 17261 Float 3.00 x 2.00 0.17 4.2 4400 66 124 -5 600 -1 3 71 36 10100 -1 3700 8 200Curipamba 17262 Outcrop chips 0.50x0.50 0.22 0.6 7700 24 727 -5 300 -1 1 32 135 25700 -1 5600 4 500Curipamba 17263 Float 3.00x2.00 1.01 10.5 4800 27 77 -5 700 19 4 57 733 20200 -1 3300 4 600Curipamba 17264 Outcrop chips 0.50x0.50 0.01 -0.2 17300 -5 34 -5 1300 -1 7 43 1105 33200 -1 2100 3 11600Curipamba 17265 Outcrop vertical wall channel 0.50x2.00 0.01 -0.2 22800 6 51 -5 1200 -1 7 13 12 30900 -1 3100 6 18700Curipamba 17266 Outcrop chips 1.00x1.00 0.01 0.3 21200 -5 117 -5 1700 45 11 22 609 40300 1 3400 7 11500Curipamba 17267 Outcrop chips 1.00x1.00 0.19 66.0 3200 139 7776 -5 200 1 -1 35 247 24500 1 2700 5 200

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Project Sample Sample type Sampling Method SizeCuripamba 17131 Float 1 x 0.80Curipamba 17132 Float 0.70 x 0.60Curipamba 17133 Float 0.60 x 0.40Curipamba 17134 Float 0.60x0.50Curipamba 17135 Outcrop chips 1.50x1.00Curipamba 17136Curipamba 17137 Float 0.50x0.40Curipamba 17138Curipamba 17139 Float 0.40x0.10Curipamba 17140 Float 0.40x0.30Curipamba 17141 Float 0.80x0.60Curipamba 17142 Float 0.40x0.25Curipamba 17143 Outcrop chips 2.00x1.00Curipamba 17144 Float 0.50x0.40Curipamba 17145 Outcrop channel 0.50 de esp Curipamba 17146 Outcrop chips 2.00x1.00Curipamba 17147 Outcrop channel 2.00x0.10Curipamba 17148 Outcrop chips 1.50x0.30Curipamba 17149 Float in situ 0.60x0.50Curipamba 17150 Float in situ 1x0.50Curipamba 17151 Float 0,80 x 0,50Curipamba 17152 Outcrop chips 2 x 1 Curipamba 17153 Float 0.70 x 0.60Curipamba 17154 Float 0.60 x 0.40Curipamba 17155 Pozo channel 1.00 x 1.00Curipamba 17156 Outcrop chips 0.50 x 1.00Curipamba 17157 Float 0.60 x 0.50Curipamba 17158 Float 0.80 x 0.60 Curipamba 17159 Float 0.60 x 0.40Curipamba 17160 Float 1 x 1 Curipamba 17161 Float 2 x 1.80Curipamba 17162 Float 0.30 x 0.20Curipamba 17163 Float 0.45 x 0.30Curipamba 17164 Outcrop chips 1.00 x 0.50Curipamba 17165 Outcrop chips 1.00 x 1.00Curipamba 17166 Outcrop chips 0.40 x 0.30Curipamba 17167 Float 1.10 x 0.80Curipamba 17168 Outcrop chips 1 x 0.50Curipamba 17169 Outcrop Chips 2.00 x 2.00Curipamba 17170 Float 0.30 x 0.40Curipamba 17171 Outcrop chips 0.50 x 1.00Curipamba 17172 Outcrop chips 0.50 x 0.50Curipamba 17173 Float 0.30 x 0.20Curipamba 17174 Float 0.30 x 0.40

17175Curipamba 17176 Float 0.60 x 0.40Curipamba 17177 Float 0.50 x 0.40Curipamba 17178 Float 0.50 x 0.50Curipamba 17179 Float 0.40 x 0.30Curipamba 17180 Float 0.30 x 0.30Curipamba 17181 Float 0.50 x 0.40Curipamba 17182 Outcrop chips 2.00 x 0.30Curipamba 17183 Float 0.50 x 0.30Curipamba 17184 Float 0.20 x 0.10Curipamba 17185 Float 0.30 x 0.20Curipamba 17186 Float 0.50 x 0.50Curipamba 17187 Float 0.30 x 0.20Curipamba 17188 Float 0.40 x 0.40Curipamba 17189 Float 0.40 x 0.40Curipamba 17190 Float 0.30 x 0.20Curipamba 17191 Float 0.50 x 0.50Curipamba 17192 Float 0.50 x 0.40Curipamba 17193 Outcrop chips 0.30 x 0.20Curipamba 17194 Float 0.40 x 0.30Curipamba 19195 Float 1.00 x 0.50Curipamba 17196 Float 0.50 x 0.30Curipamba 17197 Float 1.00 x 0.60Curipamba 17198 Outcrop chips 1.00 x 1.00Curipamba 17199 Float 0.20 x 0.30Curipamba 17200 Float 0.30 x 0.30Curipamba 17201 Float 0.20 x 0.20Curipamba 17202 Float 0.30 x 0.20Curipamba 17203 Float 0.40 x 0.30Curipamba 17204 Float 0.40 x 0.20Curipamba 17205 Float 0.50 x 0.30Curipamba 17206 Float 0.50 x 0.40Curipamba 17207 Float 0.60 x 0.40Curipamba 17208 Pozo channel 1.00 x 0.20Curipamba 17209 Pozo channel 1.00 x 0.30Curipamba 17210 Pozo chips 1.00 x 1.00Curipamba 17211 Pozo chips 0.50 x 0.50Curipamba 17212 Pozo chips 0.50 x 0.50

Mn_ppm Mo_ppm Na_ppm Ni_ppm P_ppm Pb_ppm S_ppm Sb_ppm Se_ppm Sn_ppm Sr_ppm Te_ppm Ti_ppm Tl_ppm V_ppm W_ppm Zn_ppm518 112 -100 11 -10 12 >150000 -5 -5 -10 2 -5 200 -5 59 -10 290070 9 200 -1 281 7 6800 -5 -5 -10 2 -5 100 -5 36 -10 139

118 9 -100 11 145 28 29500 9 -5 -10 23 -5 -100 8 18 -10 1751 10 -100 10 45 32 35100 13 -5 -10 21 -5 -100 7 8 -10 18

767 2 300 6 92 12 4900 -5 -5 -10 15 -5 -100 -5 19 -10 24531 4 200 24 201 22 84800 -5 -5 -10 6 -5 -100 -5 6 -10 4734 7 -100 10 29 43 26900 -5 -5 -10 6 -5 -100 8 4 -10 1044 6 200 26 144 19 141400 -5 -5 -10 6 -5 -100 -5 6 -10 11459 4 -100 7 243 72 42800 -5 -5 -10 5 -5 -100 -5 13 -10 104

146 6 -100 6 183 1491 5100 -5 -5 -10 16 -5 -100 -5 3 -10 627306 3 -100 5 138 9 7800 -5 -5 -10 42 -5 -100 -5 4 -10 226545 6 -100 4 275 7989 15200 13 -5 -10 56 -5 -100 9 2 -10 9475

135 4 700 3 244 23 4700 -5 -5 -10 6 -5 -100 -5 2 -10 32434 6 -100 4 232 18 14100 -5 -5 -10 17 -5 -100 -5 4 -10 4641187 -2 -100 5 85 11 15200 7 -5 -10 2 -5 -100 -5 7 -10 138386 -2 200 6 192 29 17800 27 -5 -10 5 -5 -100 -5 16 -10 29145 6 -100 2 158 545 1900 -5 -5 -10 29 -5 -100 -5 1 -10 693

152 3 100 1 133 361 2000 -5 -5 -10 15 -5 -100 -5 2 -10 40439 3 -100 3 69 485 2100 -5 -5 -10 4 -5 -100 -5 1 -10 123751 9 -100 6 26 751 3700 -5 -5 -10 5 -5 -100 -5 1 -10 1438

121 8 100 4 50 52 19400 17 -5 -10 30 -5 -100 40 5 -10 23383 3 400 8 211 -5 42400 -5 -5 -10 13 7 100 -5 135 -10 3023 4 100 4 215 6 6700 -5 -5 -10 14 -5 -100 -5 14 -10 16

313 114 300 69 102 18 >150000 -5 32 -10 16 17 100 -5 23 -10 3822 -2 100 3 41 9 100 -5 -5 -10 25 -5 300 -5 50 -10 30

740 4 2900 9 566 56 7000 7 -5 -10 241 -5 3400 -5 115 -10 921135 8 400 14 209 6959 19400 12 -5 -10 17 -5 -100 -5 6 -10 9082662 14 100 11 320 48 24600 5 -5 -10 45 -5 -100 -5 5 -10 13300184 11 100 6 233 6535 14600 -5 -5 -10 38 -5 -100 -5 6 -10 8212186 2 100 5 176 13 17100 -5 -5 -10 4 -5 -100 -5 3 -10 46665 2 100 4 258 6 8000 -5 -5 -10 4 -5 -100 -5 4 -10 7960 10 -100 8 34 9 -100 5 -5 -10 1 -5 -100 -5 3 -10 3267 4 100 5 32 7 -100 -5 -5 -10 3 -5 100 -5 11 -10 17

551 3 400 5 260 5 5300 -5 -5 -10 8 -5 -100 -5 16 -10 5023 2 500 2 185 13 5500 -5 -5 -10 6 -5 -100 -5 1 -10 30

1023 -2 1000 7 580 26 3100 -5 -5 -10 85 -5 2900 -5 93 -10 13418 95 200 4 32 31 42400 9 -5 -10 19 -5 -100 -5 2 -10 15

255 -2 500 3 156 -5 2100 -5 -5 -10 5 -5 200 -5 10 -10 4134 8 -100 4 87 332 11400 11 -5 -10 14 -5 -100 -5 -1 -10 596

517 -2 800 5 308 13 1000 -5 -5 -10 9 -5 2300 -5 120 -10 5053 7 -100 4 52 1032 7500 11 -5 -10 50 -5 -100 -5 3 -10 5301

549 10 200 3 304 37 46300 9 -5 -10 5 -5 -100 -5 9 -10 8928 16 -100 8 30 34 23000 13 -5 -10 5 -5 -100 -5 6 -10 3566 14 -100 8 178 481 31100 6 -5 -10 6 -5 -100 -5 9 -10 106928 4 -100 7 13 9 -100 22 -5 -10 3 -5 -100 -5 4 -10 8

141 4 100 1 440 -5 100 -5 -5 -10 6 -5 -100 -5 15 -10 10354 -2 1100 5 665 -5 41100 -5 -5 -10 15 -5 2700 -5 126 -10 33527 -2 900 1 434 -5 31900 -5 -5 -10 9 -5 1000 -5 53 -10 3462 4 -100 8 69 -5 13600 -5 -5 -10 5 -5 -100 -5 27 -10 481

313 8 -100 2 323 -5 -100 -5 -5 -10 7 -5 200 -5 19 -10 21854 3 500 11 221 7 10100 -5 -5 -10 36 -5 -100 -5 40 -10 154628 3 200 9 374 -5 8300 -5 7 -10 115 -5 1900 -5 95 -10 6428 4 -100 7 54 -5 300 -5 -5 -10 3 -5 -100 -5 21 -10 6

145 11 -100 7 87 15 23100 -5 8 -10 8 -5 -100 -5 16 -10 29299 5 -100 4 111 9 300 -5 -5 -10 5 -5 -100 -5 8 -10 2629 5 -100 5 40 -5 20000 -5 -5 -10 8 -5 -100 -5 3 -10 626 -2 -100 6 159 -5 42900 -5 5 -10 5 -5 -100 -5 5 -10 -5

122 7 -100 2 285 -5 800 -5 19 -10 6 -5 -100 -5 22 -10 29302 32 -100 -1 3971 -5 600 -5 -5 -10 15 7 -100 -5 77 -10 37188 9 -100 1 528 23 200 -5 -5 -10 8 -5 600 -5 33 -10 2378 7 -100 2 761 -5 600 -5 -5 -10 8 -5 300 -5 49 -10 1278 4 300 2 70 -5 700 -5 -5 -10 10 -5 -100 -5 -1 -10 -5

1342 -2 400 10 573 -5 100 -5 -5 -10 23 -5 2900 -5 297 -10 92245 186 -100 2 665 922 1300 -5 9 -10 11 16 -100 -5 67 -10 8755 5 -100 -1 399 -5 -100 -5 -5 -10 10 -5 -100 -5 14 -10 1334 17 100 -1 120 6 -100 -5 -5 -10 5 -5 -100 -5 8 -10 517 2 400 1 48 -5 -100 -5 -5 -10 9 -5 -100 -5 2 -10 -5

192 2 1000 3 278 -5 17100 -5 -5 -10 19 -5 200 -5 18 -10 17277 8 200 2 760 3332 5200 -5 -5 -10 10 6 200 -5 19 -10 138497 14 -100 6 325 41 36500 -5 -5 -10 6 -5 -100 -5 10 -10 63840 10 -100 8 41 16 31100 -5 -5 -10 9 -5 -100 -5 5 -10 52642 97 200 3 168 -5 3400 -5 71 -10 7 6 -100 -5 91 -10 15

165 35 200 3 456 -5 4300 -5 -5 -10 3 -5 -100 -5 190 -10 5213 3 200 5 24 -5 11300 -5 -5 -10 22 -5 -100 -5 1 -10 630 108 200 3 272 7 500 -5 -5 -10 6 -5 -100 -5 153 -10 14

598 139 200 4 536 -5 1100 12 47 -10 8 17 200 -5 191 -10 45170 4 800 4 285 13 18800 -5 -5 -10 16 -5 1700 -5 21 -10 45624 -2 200 12 392 13 -100 -5 -5 -10 69 -5 2200 -5 95 -10 80880 -2 100 13 142 7 -100 -5 -5 -10 22 -5 1200 -5 86 -10 84

>10000 3 100 80 315 -5 -100 -5 -5 -10 45 -5 1400 -5 149 -10 80705 -2 300 40 437 -5 -100 -5 -5 -10 42 -5 2600 -5 195 -10 1192453 -2 100 102 788 -5 -100 -5 -5 -10 63 -5 4900 -5 241 -10 103

TABLE 9-3 ROCK SAMPLING (Cont'd) Salazar Resources Ltd. - Curipamba Project

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Salazar R




ovember 7, 2011

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Project Sample Sample type Sampling Method SizeCuripamba 17213 Float 0.50 x 0.40Curipamba 17214 Pozo chips 1.00 x 1.00Curipamba 17215 Outcrop chips 1.00 x 1.01Curipamba 17216 Float 0,30 x 0,20Curipamba 17217 Float 0,70 x 0,60 Curipamba 17218 Float 0.90 x 1.00Curipamba 17219 Outcrop chips 0.50 x 0.50Curipamba 17220 Float 0.50 x 0.30Curipamba 17221 Outcrop vertical wall channel 3.00 x 0.30Curipamba 17222 Float 0.40 x 0.20Curipamba 17223 Outcrop chips 0.50 x 0.50Curipamba 17224 Outcrop chips 1.00 x 1.00Curipamba 17225 Float 0.40 x 0.25Curipamba 17226 Outcrop chips 1.00 x 1.00Curipamba 17227 Outcrop chips 0.50 x 0.50Curipamba 17228 Outcrop chips 3 x 2Curipamba 17229 Float 0.30 x 0.20Curipamba 17230 Float 0.30 x 0.20Curipamba 17231 Outcrop chips 1.5 x 0.50Curipamba 17232 Outcrop chips 1.5 x 0.50Curipamba 17233 Outcrop chips 0.50 x 2.00Curipamba 17234 Outcrop chips 0.50 x 0.50Curipamba 17235 Float 0.30 x 0.30Curipamba 17236 Float 0.40 x 0.40Curipamba 17237 Float 1.50 x 0.90Curipamba 17238 Float 0.60 x 0.50Curipamba 17239 Float 1 x 0.30Curipamba 17240 Float 1.50 x 1 Curipamba 17241 Float 1.50 x 1 Curipamba 17242 Float 1 x 0.90Curipamba 17243 Float 0.30 x 0.30Curipamba 17244 Outcrop 2 x 1Curipamba 17245 Outcrop 1.5 x 1Curipamba 17246 Float 0.40 x 0.30Curipamba 17247 Outcrop?? 1 x 1 Curipamba 17248 Float 0.50 x 0.30Curipamba 17249 Float in situ 2.5 x 2Curipamba 17250 Float in situ 2 x 2Curipamba 17251 Float 1.50 x 1.50Curipamba 17252 Float 0.70 x 0.40Curipamba 17253 Outcrop 0.50 x 0.30Curipamba 17254 Float 0.30 x 0.30Curipamba 17255 Float 0.80 x 0.60 Curipamba 17256 Float 0.50 x 0.50Curipamba 17257 Float 0.40 x 0.20Curipamba 17258 Float 0.60 x 0.40Curipamba 17259 Float 0.40 x 0.30Curipamba 17260 Float 1.00 x 0.50Curipamba 17261 Float 3.00 x 2.00Curipamba 17262 Outcrop chips 0.50x0.50Curipamba 17263 Float 3.00x2.00Curipamba 17264 Outcrop chips 0.50x0.50Curipamba 17265 Outcrop vertical wall channel 0.50x2.00Curipamba 17266 Outcrop chips 1.00x1.00Curipamba 17267 Outcrop chips 1.00x1.00

Mn_ppm Mo_ppm Na_ppm Ni_ppm P_ppm Pb_ppm S_ppm Sb_ppm Se_ppm Sn_ppm Sr_ppm Te_ppm Ti_ppm Tl_ppm V_ppm W_ppm Zn_ppm21 -2 100 2 164 -5 -100 -5 -5 -10 12 -5 -100 -5 8 -10 -5

238 -2 300 6 244 9 300 -5 -5 -10 25 -5 1100 -5 62 -10 4330 2 100 2 58 -5 1400 -5 -5 -10 10 -5 -100 -5 2 -10 712 2 200 5 96 -5 16100 -5 -5 -10 6 -5 -100 -5 6 -10 718 2 100 2 150 -5 100 -5 -5 -10 2 -5 -100 -5 7 -10 7

272 2 900 3 439 5 100 -5 -5 -10 6 -5 700 -5 33 -10 25902 -2 800 16 368 -5 3600 -5 -5 -10 31 -5 2700 -5 161 -10 521189 -2 500 6 326 -5 2200 -5 -5 -10 12 -5 1500 -5 142 -10 691037 -2 100 3 117 -5 200 -5 -5 -10 11 -5 -100 -5 14 -10 44835 -2 -100 15 216 -5 200 5 -5 -10 4 -5 100 -5 93 -10 112656 -2 100 5 107 15 100 -5 -5 -10 12 -5 -100 -5 34 -10 351053 2 1500 8 324 -5 1400 -5 -5 -10 35 -5 1000 -5 174 -10 54183 2 -100 2 263 23 3400 6 -5 -10 14 -5 -100 -5 23 -10 30516 3 500 6 275 -5 8400 -5 -5 -10 10 -5 800 -5 77 -10 32268 4 400 10 318 -5 7800 5 -5 -10 24 -5 200 -5 73 -10 23532 4 300 10 260 2 41200 <2 22 200 <10 148 <10 2118 4 100 1 490 <2 15300 <2 13 <100 <10 2 <10 5

145 7 100 <1 150 2 600 <2 4 <100 <10 30 <10 23175 2 300 <1 460 <2 17900 <2 6 <100 <10 8 <10 12309 1 200 1 660 <2 31700 <2 6 100 <10 28 <10 21225 136 100 2 170 13 >100000 <2 6 100 <10 161 <10 47485 5 400 19 160 7 54100 -5 17 -10 6 -5 100 -5 162 -10 25323 64 100 6 247 14 1500 -5 40 -10 9 -5 100 -5 267 -10 81169 13 100 5 355 14 1300 -5 20 -10 4 -5 300 -5 259 -10 59130 8 100 6 238 35 12100 -5 -5 -10 21 -5 -100 -5 5 -10 528539 9 100 6 210 909 4800 -5 -5 -10 16 -5 -100 -5 5 -10 2049

1867 -2 100 4 331 23 2700 -5 6 -10 12 -5 100 -5 31 -10 828168 5 200 6 300 125 15400 5 -5 -10 20 -5 -100 -5 17 -10 1093574 2 300 4 314 43 13400 -5 -5 -10 20 -5 100 -5 33 -10 97621 5 100 5 158 47 3700 6 -5 -10 11 -5 300 -5 10 -10 17444 5 100 5 310 199 14400 5 -5 -10 15 -5 400 -5 4 -10 1727

140 7 100 5 151 6 500 -5 17 -10 4 -5 100 -5 25 -10 19348 21 100 5 173 -5 300 -5 26 -10 4 -5 -100 -5 15 -10 2532 6 100 2 170 30 500 2 9 100 <10 36 <10 1121 5 <100 <1 260 40 500 2 6 100 <10 26 <10 1815 11 <100 2 330 29 700 22 2 <100 <10 32 <10 2127 7 <100 6 200 67 12900 <2 24 <100 <10 4 <10 594030 12 <100 6 140 190 14500 <2 19 100 <10 4 <10 4370

423 <1 500 6 340 4 100 <2 10 200 <10 18 <10 95400 1 <100 3 540 60 4800 <2 15 <100 <10 4 <10 8871070 1 400 22 240 <2 300 <2 11 <100 <10 244 <10 32981 2 <100 6 80 276 4200 <2 11 <100 <10 14 <10 73600 1 <100 4 430 50 1600 <2 47 100 <10 13 <10 966356 6 <100 4 550 7 8500 2 18 <100 <10 7 <10 1430190 8 -100 9 95 86 4800 -5 -5 -10 3 -5 -100 -5 6 -10 5452231 -2 100 4 413 264 200 -5 -5 -10 9 -5 100 -5 10 -10 366360 13 100 5 236 774 4100 -5 -5 -10 8 -5 -100 -5 6 -10 1186470 3 100 4 438 654 3200 -5 -5 -10 9 -5 100 -5 12 -10 699259 5 200 6 401 620 100 -5 -5 -10 7 -5 100 -5 3 -10 163255 5 100 3 335 24 2300 -5 -5 -10 18 -5 100 -5 4 -10 127230 11 100 6 323 3008 8800 -5 -5 -10 11 -5 100 -5 6 -10 48641939 3 300 5 227 -5 11400 -5 -5 -10 9 -5 100 -5 31 -10 1072046 -2 100 9 291 5 8600 -5 -5 -10 6 -5 -100 -5 28 -10 1605583 -2 200 4 259 -5 15500 -5 -5 -10 11 -5 500 -5 51 -10 1300035 7 -100 3 68 505 5100 10 -5 -10 56 -5 -100 -5 1 -10 318

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Rev. 0 Page 10-1

10 DRILLING The Phase 1 drilling program at Curipamba began in late 2007 and was contracted to

Kluane International Drilling and Perforadores Andesdrill S.A. Both companies used

portable hydraulic diamond drills, namely the Hydracore 2000 model, with a depth

capacity of 270 m for HQ core (63.5 mm diameter) and 450 m for NQ core (47.6 mm

diameter). This initial drill program was terminated in 2008 with the completion of 51 drill

holes totalling 10,001 m as summarized in Table 10-1. The drilling tested 11 target

areas.

TABLE 10-1 PHASE 1 DRILL HOLES


Prospect Drill Hole ID Easting Northing Elevation

(m) Azimuth

(o) Dip (o)

Depth (m)

Sesmo Sur CURI-07-01 692775.45 9849299 412.32 270 -45 217.93 Sesmo Sur CURI-07-02 692778.99 9849299 412.26 90 -45 141.73 Sesmo Sur CURI-07-03 692762.03 9849397 405.55 270 -45 167.64 Sesmo Sur CURI-07-04 692713.46 9849501 433.70 272.7 -46.9 214.88 Sesmo Sur CURI-07-05 692665.20 9849501 450.27 273 -45 104.85 Sesmo Sur CURI-07-06 692823.32 9849403 383.26 271.1 -47 208.48 Sesmo Sur CURI-07-07 692908.36 9849300 436.78 270 -45 254.50 Sesmo Sur CURI-07-08 692700.59 9849600 462.96 270 -45 185.62 Sesmo Sur CURI-07-09 692764.51 9849395 406.11 180 -80 131.00 Sesmo Sur CURI-07-10 692301.51 9849497 508.73 90 -50 295.96 Sesmo Sur CURI-07-11 692303.97 9849393 485.91 90 -70 159.10 Sesmo Sur CURI-07-12 692650.94 9849298 411.67 270 -50 272.79 Sesmo Sur CURI-07-13 692683.79 9849700 506.45 270 -50 298.70 El Gallo CURI-07-14 695001.35 9854459 928.91 50 -50 185.92 El Gallo CURI-07-15 695013.28 9854496 930.66 140 -45 94.48 El Gallo CURI-07-16 695024.03 9854489 924.09 230 -50 102.71 El Gallo CURI-07-17 695034.13 9854469 922.35 320 -60 107.59 El Gallo CURI-07-18 695009.76 9854527 939.62 230 -50 107.28 Roble 1 CURI-07-19 695047.96 9855708 907.56 290 -45 126.49 Roble 1 CURI-07-20 695047.65 9855708 907.33 290 -75 123.44 Roble 1 CURI-07-21 695059.81 9855765 902.47 110 -50 239.26 EL Roble CURI-08-22 695283.99 9855668 941.70 130 -50 330.70 EL Roble CURI-08-23 695398.18 9855670 956.35 60 -50 216.40 Roble Est CURI-08-24 695623.19 9855554 992.75 50 -45 184.40 Roble 1 CURI-08-25 694992.74 9855717 936.26 110 -50 311.20 Sesmo Sur CURI-07-26 692662.42 9849998 355.46 90 -50 140.50

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Prospect Drill Hole ID Easting Northing Elevation (m)

Azimuth (o)

Dip (o)

Depth (m)

Sesmo Sur CURI-08-27 692895.20 9849501 371.78 90 -60 300.50 Sesmo Sur CURI-08-28 692480.03 9849395 470.43 90 -70 326.70 Roble 1 CURI-08-29 695059.34 9855765 902.48 110 -75 214.27 Cade Sur CURI-08-30 694654.14 9855120 814.07 120 -50 142.34 Sesmo Sur CURI-08-31 692575.81 9849699 477.68 270 -50 181.65 Cade Sur CURI-08-32 694683.24 9855078 819.65 130 -50 195.07 Sesmo Sur CURI-08-33 692776.7 9849438 399.14 270 -50 143.55 Cade 1 CURI-08-34 694593.28 9855312 773.56 290 -50 110.94 Cade CURI-08-35 694540.00 9855765 724.30 310 -55 201.16 El Domo CURI-08-36 695120.08 9855271 942.42 115 -50 103.00 El Domo CURI-08-37 695119.72 9855271 942.42 115 -75 114.30 Sesmo CURI-08-38 694426.01 9856069 725.00 305 -50 205.74 El Domo CURI-08-39 695116.24 9855272 942.50 295 -50 260.60 Caracol 1 CURI-08-40 695160.72 9855970 875.70 290 -50 245.36 EL Roble CURI-08-41 695263.24 9855685 950.59 130 -60 119.65 El Domo CURI-08-42 695189.32 9855401 973.20 90 -55 308.00 El Domo CURI-08-43 694959.67 9855400 920.00 90 -50 364.00 El Domo CURI-08-44 694957.17 9855208 885.50 90 -50 45.20 El Domo CURI-08-45 695246.95 9855276 979.25 280 -45 285.00 El Domo CURI-08-46 695003.70 9855100 881.50 90 -60 209.70 El Domo CURI-08-47 694999.98 9855100 881.50 270 -65 206.70 El Domo CURI-08-48 694997.13 9855200 895.25 90 -75 188.70 El Domo CURI-08-49 695000.74 9855300 915.00 90 -80 200.00 El Domo CURI-08-50 695189.32 9855401 977.00 0 -90 200.00 El Domo CURI-08-51 695203.60 9855500 973.20 90 -70 207.50

TOTAL PHASE I 10,001

The Phase 2 drilling program was carried out from June 4 to September 23, 2010, with

20 drill holes completed for a total of 3,241.38 m (Table 10-2).

This drilling was intended to investigate three areas as follows:

• 4,500 m of drilling in 30 diamond drill holes (DDH) along the El Domo Anomaly with the purpose of delineating the VMS mineralization encountered in that area.

• 4,400 m in 22 DDH to test geochemical and geophysical anomalies at the Sesmo Sur and La Vaquera targets and at the other geochemical and geophysical anomalies in the area.

• 2,800 m in 14 DDH targeting other geochemical and geophysical anomalies in the Las Naves concession area.

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TABLE 10-2 PHASE 2 DRILLING PROGRESS Salazar Resources Ltd. – Curipamba Project

Hole Easting Northing Elevation

(m) Azimuth

(o) Dip (o)

Depth (m)

CURI-52 695052.55 9855099.98 894.31 90 -60 171.00 CURI-53 695049.95 9855050.14 894.46 0 -90 173.85 CURI-54 695031.87 9855000.30 887.08 90 -70 206.70 CURI-55 695100.12 9855099.99 910.19 90 -60 89.80 CURI-56 695049.22 9855207.48 904.52 90 -75 134.70 CURI-57 694949.90 9855202.47 873.74 90 -75 121.35 CURI-58 695151.21 9855600.08 941.13 90 -75 140.80 CURI-59 694752.66 9855895.37 762.04 90 -75 140.80 CURI-60 695160.06 9855449.92 958.55 90 -75 203.80 CURI-61 695150.00 9855350.00 960.96 90 -75 254.80 CURI-62 695099.95 9855179.96 903.19 90 -75 122.95 CURI-63 695100.03 9855045.03 910.48 0 -90 161.85 CURI-64 695084.97 9854999.99 904.48 90 -75 203.75 CURI-65 695069.91 9854953.98 889.02 90 -70 149.80 CURI-66 695099.59 9854900.04 906.80 270 -85 121.10 CURI-67 695135.25 9854999.94 926.84 90 -70 161.78 CURI-68 695149.99 9855049.80 935.71 0 -90 134.25 CURI-69 695100.22 9855102.60 910.15 90 -60 143.75 CURI-70 695200.00 9854900.00 937.86 270 -85 221.80 CURI-71 695137.50 9854950.00 910.77 90 -70 182.75

TOTAL PHASE II 3,241.38

The drill hole data up to hole CURI-71 was the basis of the resource estimate completed

by Scott Wilson RPA (Valliant et al., 2010). The definition drilling is ongoing and, since

September 2010, a total of 84 new drill holes have been completed totalling 15,582.85 m

as outlined in Table 10-3. All of this drilling has been conducted in the El Domo area.

This data has been incorporated into the previous drilling database for the present

resource update.

TABLE 10-3 DEFINITION DRILLING PROGRESS Salazar Resources Ltd. – Curipamba Project

Hole Easting Northing Elevation

(m) Azimuth

(o) Dip (o)

Depth (m)

CURI-72 695180.38 9855002.85 928.61 90 -70 158.75 CURI-73 695110.28 9855451.53 952.74 90 -70 161.90 CURI-74 695106.96 9855451.45 952.53 270 -85 150.00 CURI-75 695106.74 9855451.45 952.51 270 -60 164.75 CURI-76 695150.02 9855499.98 954.42 90 -70 195.60 CURI-77 695146.65 9855499.85 954.23 270 -85 128.80

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Hole Easting Northing Elevation (m)

Azimuth (o)

Dip (o)

Depth (m)

CURI-78 695146.24 9855499.82 954.21 270 -55 135.90 CURI-79 695270.67 9855406.01 964.11 90 -65 200.75 CURI-80 695140.03 9855400.52 947.13 0 -90 171.00 CURI-81 695138.06 9855549.71 951.09 270 -90 182.85 CURI-82 695137.92 9855549.67 951.06 270 -65 143.70 CURI-83 695103.72 9855599.97 942.83 90 -80 124.05 CURI-84 695178.21 9854950.14 928.73 90 -70 144.25 CURI-85 695243.96 9854900.04 945.59 270 -85 132.00 CURI-86 695008.99 9854700.17 950.19 90 -80 224.70 CURI-87 695052.66 9855150.04 892.37 90 -75 107.95 CURI-88 695497.33 9854697.45 951.09 270 -75 191.90 CURI-89 694895.57 9855200.01 857.79 90 -75 128.95 CURI-90 694994.81 9855046.93 878.00 90 -75 99.00 CURI-91 694980.65 9854999.77 876.45 90 -70 134.95 CURI-92 695267.25 9855405.89 963.97 270 -80 248.85 CURI-93 695209.46 9855449.95 977.22 90 -70 260.80 CURI-94 695163.27 9855550.46 950.80 90 -75 134.95 CURI-95 695073.49 9855270.9 933.61 90 -75 197.80 CURI-96 695100.56 9855349.95 939.54 90 -75 179.95 CURI-97 695456.66 9854622.6 938.78 270 -75 170.95 CURI-98 695199.61 9855219.95 959.53 0 -90 251.80 CURI-99 695000.52 9855138.15 881.94 90 -75 125.95

CURI-100 695100.47 9855150.08 903.29 90 -75 113.95 CURI-101 694285.49 9854893.02 994.08 0 -90 227.80 CURI-102 695114.57 9855254.91 942.86 90 -75 188.80 CURI-103 695179.4 9855200.01 952.25 270 -80 293.80 CURI-104 695030.68 9855249.92 909.79 90 -75 140.80 CURI-105 695235.97 9855549.95 978.84 0 -90 224.90 CURI-106 695000.43 9855249.9 903.31 90 -85 134.95 CURI-107 695050.9 9855350.05 929.24 90 -75 149.95 CURI-108 695195.73 9855599.99 943.57 90 -75 216.05 CURI-109 695092.45 9855400.15 949.99 90 -90 155.80 CURI-110 695250.53 9855600.33 959.90 90 -75 200.95 CURI-111 695000.47 9855350.05 908.15 90 -75 137.95 CURI-112 695298.72 9855900.03 901.69 270 -78 155.35 CURI-113 694946.79 9855249.95 875.97 90 -75 143.95 CURI-114 695195.91 9855350.06 957.03 90 -75 110.75 CURI-115 694950.73 9855150.73 854.04 90 -75 122.95 CURI-116 694900.5 9855150.06 843.96 90 -75 94.25 CURI-117 695196.47 9855650.55 939.30 90 -75 120.00 CURI-118 694919.26 9855100.09 858.89 270 -65 125.95 CURI-119 695250.75 9855649.89 952.22 90 -75 121.75 CURI-120 695150.51 9855649.96 932.65 90 -75 140.90 CURI-121 695100.58 9855650.04 932.58 90 -75 149.90 CURI-122 694922.79 9855100.22 858.86 90 -75 140.95

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Hole Easting Northing Elevation (m)

Azimuth (o)

Dip (o)

Depth (m)

CURI-123 695096.38 9855649.93 932.62 270 -50 239.40 CURI-124 694940.63 9855050.02 873.03 90 -70 95.95 CURI-125 695096.82 9855649.94 935.59 270 -70 119.95 CURI-126 694930.77 9855000.2 867.53 90 -70 128.95 CURI-127 695100.08 9855600.04 942.86 270 -60 84.80 CURI-128 695030.91 9854950.07 884.22 90 -70 119.95 CURI-129 695120.05 9855303.05 950.46 90 -75 185.95 CURI-130 695100.39 9854944.94 901.70 90 -75 137.95 CURI-131 695137.31 9855149.72 927.52 90 -75 269.80 CURI-132 695240.23 9855350.97 945.70 233 -87 191.95 CURI-133 695187.37 9855049.96 957.77 90 -85 270.00 CURI-134 695242.55 9855353.43 945.71 53 -72 198.00 CURI-135 695222.69 9855000.01 950.78 90 -80 185.95 CURI-136 695251.03 9855300.03 975.19 270 -75 236.80 CURI-137 695247.29 9854950.01 950.33 90 -85 180.00 CURI-138 695247.51 9854950.01 950.31 90 -60 215.80 CURI-139 695254.51 9855299.99 975.18 90 -85 257.80 CURI-140 695200.983 9855150.18 966.61 90 -82 243.80 CURI-141 695226.813 9855249.71 975.58 90 -90 309.00 CURI-142 695254.611 9855300.14 975.12 90 -65 274.30 CURI-143 695226.925 9855249.77 975.56 90 -75 332.80 CURI-144 695200.58 9855101.87 961.53 90 -90 303.00 CURI-145 695306.772 9855349.98 994.41 90 -90 251.80 CURI-146 695299.303 9854900.38 951.96 270 -80 218.95 CURI-147 695303.039 9854900.49 951.88 90 -60 200.80 CURI-148 695306.832 9855350.03 994.39 90 -70 235.95 CURI-149 695235.713 9854700 938.76 90 -75 248.90 CURI-150 695458.976 9854699.98 948.49 270 -75 215.90 CURI-151 695227 9855250 975.00 90 -55 257.00 CURI-152 695500 9854750 979.00 270 -75 398.50 CURI-153 695550 9854900 1,013.00 90 -90 257.95 CURI-154 695217 9855008 951.53 90 -60 200.00 CURI-155 695750 9855150 1,081.00 90 -90 250.00

TOTAL PHASE III 15,582.85

Table 10-4 outlines the intercepts for the Main Zone in the El Domo Mineral Resource.

The true widths of the intercepts in the table are not stated because the holes were

drilled at various angles intersecting an essentially flat lying massive sulphide target.

Faulting is apparent in all drill holes and ranges from distinct fault breccia and gouge to

zones of intensely broken core (Mayor, 2010). Nonetheless, core recovery has been

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good, estimated at 90% to 95% overall. The sample interval is determined by the type of

mineralization and internal contacts and generally ranges from 50 cm to 2.0 m.

TABLE 10-4 MINERALIZED INTERCEPTS FOR THE MAIN ZONE IN EL DOMO MINERAL RESOURCE


Drill hole From To Intercept Copper Zinc Gold Silver Lead (m) (m) (m) (%) (%) (g/t) (g/t) (%)

CURI-08-37 102.04 104.39 2.35 0.0766 0.0506 0.08 1.16 0.0062 CURI-08-39 117.15 129.37 12.22 1.1994 4.5489 3.62 51.89 0.1495 CURI-08-45 202.86 208.61 5.75 3.5389 6.6166 4.90 95.38 0.2170 CURI-08-46 49.30 66.66 17.36 3.2615 2.9544 3.40 107.62 0.7772 CURI-08-47 74.70 83.85 9.15 0.3001 2.6803 0.20 23.12 0.2501 CURI-08-48 40.05 60.65 20.60 2.6406 2.9259 3.18 56.67 0.4062 CURI-08-49 63.20 69.30 6.10 1.4069 2.8254 1.85 26.06 0.2440 CURI-08-50 133.30 139.75 6.45 1.1112 0.4779 0.87 10.60 0.0582 CURI-52 56.00 65.93 9.93 2.4079 0.5334 0.98 10.03 0.0291 CURI-53 65.40 73.34 7.94 4.6155 3.7574 3.51 240.30 0.2316 CURI-54 57.42 62.00 4.58 2.0552 9.7503 2.79 83.15 1.1283 CURI-55 80.10 87.71 7.61 0.1416 0.8049 0.55 25.26 0.1509 CURI-56 59.62 73.80 14.18 4.3169 8.6542 11.58 190.92 0.8695 CURI-57 54.64 66.20 11.56 1.5130 5.0302 2.56 62.91 0.2970 CURI-60 118.50 159.80 41.30 2.9210 1.3190 3.02 33.91 0.1213 CURI-61 146.77 157.30 10.53 3.1567 0.2414 1.27 11.58 0.0176 CURI-62 68.42 71.95 3.53 0.8992 4.1932 3.12 84.39 0.5151 CURI-62 81.58 90.23 8.65 1.0621 4.7083 3.89 79.96 0.4831 CURI-63 70.55 81.36 10.81 1.3482 2.9620 0.71 15.81 0.0133 CURI-64 67.90 79.00 11.10 6.4633 5.0655 4.72 144.19 0.6837 CURI-65 53.50 56.21 2.71 0.0701 3.4273 0.34 7.28 0.0410 CURI-66 98.24 100.23 1.99 1.4194 0.1082 0.15 3.20 0.0048 CURI-67 81.40 93.90 12.50 1.9549 7.0120 2.08 71.08 0.8458 CURI-68 86.63 103.57 16.94 2.3544 3.3954 5.06 59.32 0.8589 CURI-69 79.29 87.60 8.31 0.7578 6.4140 20.60 206.92 3.1882 CURI-70 83.95 86.00 2.05 0.1732 2.7024 0.17 7.48 0.1610 CURI-71 60.60 63.48 2.88 1.5430 17.4964 15.99 832.41 3.8021 CURI-73 92.46 115.83 23.37 1.5017 0.5139 0.88 21.70 0.0936 CURI-74 87.82 97.16 9.34 0.4160 2.6676 2.73 24.95 0.2287 CURI-76 124.38 145.67 21.29 0.5337 0.3640 0.29 9.78 0.0221 CURI-77 118.35 123.38 5.03 0.0765 0.9672 1.11 34.34 0.4187 CURI-80 95.75 122.10 26.35 1.1429 0.2375 0.96 9.78 0.0625 CURI-81 126.20 131.00 4.80 0.1605 2.2727 0.12 2.31 0.0048 CURI-84 81.35 85.74 4.39 1.2044 3.5329 0.99 46.78 0.1297 CURI-85 83.30 89.30 6.00 0.7457 0.4060 0.39 14.04 0.0990

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Drill hole From To Intercept Copper Zinc Gold Silver Lead (m) (m) (m) (%) (%) (g/t) (g/t) (%)

CURI-87 44.15 67.56 23.41 5.7763 1.1998 2.43 28.11 0.0761 CURI-90 45.00 47.90 2.90 0.9859 8.2724 6.76 238.18 1.3278 CURI-91 59.47 62.00 2.53 1.4317 3.6014 3.01 45.54 1.3754 CURI-94 119.70 122.95 3.25 1.2545 0.9062 1.05 18.77 0.0545 CURI-95 90.00 92.28 2.28 1.0691 0.2208 0.78 10.16 0.0384 CURI-95 109.85 117.63 7.78 1.4352 0.0956 0.89 9.64 0.0102 CURI-96 105.27 117.28 12.01 0.7199 0.4540 1.18 18.62 0.0716 CURI-99 52.50 76.25 23.75 4.4861 1.5436 6.46 44.27 0.1475 CURI-100 53.30 59.95 6.65 0.7513 0.2680 0.71 6.46 0.0256 CURI-100 67.95 70.80 2.85 1.0958 0.1949 0.76 5.46 0.0318 CURI-102 101.53 104.88 3.35 1.2604 0.4612 1.58 19.66 0.0688 CURI-104 56.44 76.15 19.71 3.4762 1.5443 4.26 36.70 0.0951 CURI-105 147.60 153.05 5.45 2.5484 2.9005 3.04 87.99 0.9508 CURI-106 57.00 93.33 36.33 4.3944 1.5045 3.74 35.85 0.1706 CURI-107 81.03 90.54 9.51 0.6512 1.0547 1.54 19.06 0.0859 CURI-109 106.53 122.19 15.66 1.0630 2.6779 1.52 25.50 0.0711 CURI-111 38.65 50.77 12.12 0.6556 1.1804 0.63 10.51 0.0727 CURI-113 36.75 39.15 2.40 2.3070 18.9755 33.22 734.08 9.4131 CURI-113 74.08 90.48 16.40 0.7246 2.3694 0.26 13.44 0.0757 CURI-115 34.50 47.30 12.80 3.4273 3.5645 4.01 137.85 0.5607 CURI-122 53.68 61.00 7.32 0.7372 10.9288 3.68 111.15 0.9720 CURI-128 57.00 60.79 3.79 0.7479 4.2891 6.06 386.10 1.0762 CURI-129 150.37 152.35 1.98 1.1238 2.2481 0.97 25.95 0.2177 CURI-130 55.18 58.65 3.47 0.0110 0.1579 0.91 44.54 0.0586 CURI-132 125.21 144.96 19.75 1.5463 0.5445 0.89 12.53 0.0321 CURI-137 103.87 113.81 9.94 4.3966 14.8278 3.48 91.94 0.5228 CURI-138 153.00 157.50 4.50 0.1727 1.2926 1.37 85.31 0.3763 CURI-146 87.18 91.71 4.53 0.0733 0.6939 1.35 22.61 0.2554

RPA notes that drill hole directional surveys were carried out in 2010-2011, as

recommended by Scott Wilson RPA (Valliant et al., 2010). At the time of the RPA site

visit, however, the Salazar non-magnetic survey unit was being repaired. RPA

recommends that a replacement system be implemented and that the directional survey

location program be continued for all future drill holes.

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11 SAMPLE PREPARATION, ANALYSES AND SECURITY Drill core is “quick-logged” in the field and core boxes are sealed and transported by

company vehicle to the core logging, sampling, and storage facility in Ventanas,

Ecuador. At Ventanas, detailed logs are prepared and all core is photographed (Figure

11-1). The project geologist selects core for sampling and marks the sample intervals on

the core and the core box. Samples are taken a minimum of five metres above the

mineralized zone and a minimum of 20 m below the zone. Sample lengths vary from 50

cm to two metres. Core samples are cut in half with a diamond saw and samples are

tracked by three-part sample books. One tag accompanies the sample for assay, a

second tag remains in the core box at the beginning of the sample interval, and a third

tag is kept with the geologist’s records. Core trays are marked with aluminum tags as

well as felt marker.

Samples are bagged and tagged immediately. Samples are recorded and sealed for

delivery to the sample preparation laboratory. A senior geologist supervises the core

cutting, tagging, and sealing for transportation to the preparation laboratories in Quito.

In August 2010, Salazar instituted a water immersion procedure for the on-site

determination of the bulk density of barren host rocks and the various types of

mineralization.

The core is photographed, logged, marked for sampling, sawn, bagged, and sealed in

rice bags for shipment by Salazar personnel at their logging facility at Ventanas.

Sample batches for assay are initially sent with a chain of custody by pickup car by a

Salazar geologist from Ventanas to Quito for sample preparation at either BSI

Inspectorate (Inspectorate) or ALS Chemex laboratories. After preparation, sample

pulps are shipped by TNT courier to Inspectorate or ALS Chemex in Lima, Peru, for

analysis. BSI Inspectorate Services Peru, S.A.C. is certified ISO 9001:2000 and has an

accreditation of ISO 17025. ALS Chemex is certified ISO 9001:2000.

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At Inspectorate, gold is determined using fire assay with an Atomic Absorption (AA)

spectroscopy finish and silver and base metals are determined by aqua regia digestion

with an Inductively Coupled Plasma (ICP) finish.

At ALS Chemex, gold is determined by the fire assay and AA spectroscopy, silver by

aqua regia digestion and AA spectrometry, and base metals by aqua regia digestion and

ICP.

Details of the sample preparation and analytical procedures can be found in Appendix 1.

As initially stated in Scott Wilson RPA (2010) and based on the July 2011 site visit, RPA

confirms the adequacy of the samples taken, the security of the shipping procedures, the

sample preparations, and the analytical procedures at the two laboratories. However,

RPA recommends that one laboratory be used as the primary laboratory for all analyses,

to provide consistency in the methods, and the second laboratory be used for check

assays and analyses.

FIGURE 11-1 DRILL HOLE PHOTOGRAPGHY

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12 DATA VERIFICATION Jamie Lavigne, P.Geo., and Elizabeth McMonnies, P.Geo., both independent QPs,

visited the property in July 2011. At the core logging facility, they reviewed drill core

handling procedures including photography, geological and geotechnical logging,

sampling, and specific gravity measurement. Representative drill holes were examined

and checked against drill hole logs. In the field, RPA inspected drill sites and several

outcrops of mineralization and examined representative rock types.

RPA checked the databases against copies of the assay certificates, independently

sampled drill core, and reviewed quality assurance/quality control (QA/QC) data

collected by Salazar. In summary, the methods used by Salazar meet industry best

practices and no significant discrepancies were identified during the verification process.

RPA considers the drill hole databases to be valid and suitable for estimation of the

Mineral Resources in the El Domo area of the Curipamba Project.

DATABASE VERIFICATION Scott Wilson RPA (Valliant et al., 2010) checked approximately 20% of the original assay

certificates for drill holes 1 to 65 versus the diamond drill logs and database and found

no errors.

In 2011, RPA checked approximately 18% of the digital database for drill holes 66 to 155

against the original logs for discrepancies in collar coordinates, surveys, and lithology

records. RPA did not identify significant discrepancies.

RPA also checked 100% of the copper and gold assays, and 15.4% of other metal

assays, in the assay database for drill holes 66 to 152 against original hardcopy assay

certificates and found no errors. Another 4.4% of over-range values for copper, zinc,

silver, and lead were checked and no errors were found.

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QUALITY ASSURANCE AND QUALITY CONTROL Quality assurance (QA) consists of evidence to demonstrate that assay results have

both precision and accuracy within generally accepted limits for the sampling and

analytical method(s) used and therefore provide confidence in the support data used in a

resource estimate. Quality control (QC) consists of procedures used to ensure that an

adequate level of quality is maintained in the process of collecting, preparing, and

assaying the exploration drilling samples. In general, QA/QC programs are designed to

prevent or detect contamination and allow analytical precision, repeatability, and

accuracy to be quantified.

The Salazar QA/QC program includes the submission of certified reference materials

(CRMs), control blanks, and duplicate pulp samples to an independent laboratory. One

CRM is inserted for every 10 to 15 samples and one blank is inserted for approximately

every 30 samples. Salazar does not submit any core duplicates. Salazar requests re-

analysis of every sample with assays higher than 5 g/t Au, 5% Cu, or 5% Zn. A pulp of

every tenth sample is sent to an alternate laboratory for check analysis.

RPA reviewed the Salazar QA/QC results and collected ten independent samples for

analyses. RPA recommends that the QA/QC program should be modified to include the

insertion of duplicate core and reject samples, analysis and interpretation of QA/QC

results on a regular basis, establishment of a protocol for non-compliant results, and a

formal reporting system for QA/QC results.

CERTIFIED REFERENCE MATERIALS Results of the regular submission of CRMs are used to identify problems with specific

sample batches and long-term biases associated with the primary assay laboratory.

Salazar submitted CRMs, purchased from WCM Minerals, Canada, at the rate of

approximately one sample per batch of 15 samples for a total of 338 submissions. The

expected values and standard deviations (SD) for the various CRMs are listed in Table

12-1.

www.rpacan.com



Rev. 0 Page 12-3

In RPA’s opinion, the copper, lead, zinc, and precious metal CRMs grades cover

reasonable ranges of expected results.

TABLE 12-1 EXPECTED VALUES AND RANGES OF STANDARDS Salazar Resources Ltd. - Curipamba Project

Standard

Au Ag Cu Pb Zn Samples Mean SD Mean SD Mean SD Mean SD Mean SD Submitted

(g/t) (g/t) (g/t) (g/t) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm)

CU-145 93 3.3658 31,000 897 13 CU-152 1.616 0.068 27.23 0.622 11,610 280 22 CU-155 0.605 0.0152 7.338 0.5904 4,740 160 90 CU-163 4.35 0.1299 99 2.3664 10,600 170 11 CU-175 0.88 0.0384 4 0.6032 5,300 118 12 PB-130 82.449 2.309 2,520 72 7,280 197 14,450 309 88 PB-140 84 2.194 3,300 40 43,500 750 38,500 1,380 9 PM-1113 0.87 0.05 153 5.02 1 PM-1118 1.824 0.0742 38.452 1.6629 9,580 107 83 PM-1123 1.42 0.046 31 1.2851 3,100 82 9

Specific pass/fail criteria are determined from the SD provided for the CRMs. The

conventional approach to setting reference standard acceptance limits is to use the

mean assay ± 2 SD as a warning limit and ± 3 SD as a failure limit. Results falling

outside of the failure limit of ± 3 SD must be investigated to determine the source of the

erratic result, either analytical or clerical.

Scott Wilson RPA (Valliant et al., 2010) reviewed the QA/QC results for holes 1 to 65

and found no significant issues. RPA reviewed the CRM results from drill holes 66 to

152 for Cu, Zn, Au, Ag and Pb. The results from PM-1113 were not reviewed as they

represented only one submission of the total 338. Standard assay failures are listed in

Table 12-2. The CRM results for ALS Chemex and Inspectorate have been combined in

Table 12-2 but are shown for each laboratory on the CRM control charts in the figures

that follow.

TABLE 12-2 CRM FAILURE SUMMARY Salazar Resources Ltd. - Curipamba Project

Copper Gold Silver Lead Zinc Total

No. assays 337 227 337 97 97 1,095

No. values outside 3SD 6 30 2 8 1 47

% outside 3SD 1.8 13.2 0.6 8.2 1.0 4.3

www.rpacan.com



Rev. 0 Page 12-4

The copper results for 337 CRMs are summarized in the nine graphs in Figure 12-1.

CRM summary results for copper are listed in Table 12-3. Overall, both laboratories

displayed similar results. CRM PM-1118 show results above the standard average in the

Inspectorate data and below the standard average for Chemex data. Six (1.8%) assays

returned values outside ± 3 SD, which is within industry standards.

FIGURE 12-1 CERTIFIED REFERENCE MATERIALS – CU

25,00026,00027,00028,00029,00030,00031,00032,00033,00034,00035,000

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Sample #

CU-145 - Cu Grade

Inspec Chemex Cu Standard -3 SD +3 SD

9,0009,500

10,00010,50011,00011,50012,00012,50013,000

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CU-152 - Cu Grade


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)

Sample #

CU-155 - Cu Grade


www.rpacan.com



Rev. 0 Page 12-5

Figure 12-1 Cont’d

9,4009,6009,800

10,00010,20010,40010,60010,80011,00011,200

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CU-163 - Cu Grade


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CU-175 - Cu Grade


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Cu

(ppm

)

Sample #

PB-130 - Cu Grade

Inspec Chemex Cu Standard - 3 SD + 3 SD

www.rpacan.com



Rev. 0 Page 12-6


3,0003,0503,1003,1503,2003,2503,3003,3503,4003,4503,5003,550

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PB-140 - Cu Grade


8,2008,4008,6008,8009,0009,2009,4009,6009,800

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)

Sample #

PM-1118 - Cu Grade

Inspec Chemex Cu Stardard -3 SD +3 SD

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2,800

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PM-1123- Cu Grade


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Rev. 0 Page 12-7

TABLE 12-3 SUMMARY OF THE CRM RESULTS FOR COPPER Salazar Resources Ltd. - Curipamba Project

CU-145 CU-152 CU-155 CU-163 CU-175 PB-130 PB-140 PM-1118 PM-1123 Total

No. Assays 13 22 90 11 12 88 9 83 9 337

Minimum (ppm) 29,000 11,350 4,380 10,450 5,210 2,404 3,203 8,810 2,892

Maximum (ppm) 31,000 12,200 5,010 11,000 5,520 2,770 3,480 9,911 3,270

Average (ppm) 29,746 11,810 4,756 10,823 5,374 2,511 3,290 9,643 3,062

CRM (ppm) 31,000 11,610 4,740 10,600 5,300 2,520 3,300 9,580 3,100

- 3SD (ppm) 28,309 10,770 4,260 10,090 4,943 2,304 3,180 9,259 2,854

+ 3SD (ppm) 33,691 12,450 5,220 10,600 5,654 2,736 3,420 9,901 3,346

No. values outside 3SD 0 0 0 0 0 1 1 4 0 6

% outside 3SD 0.0 0.0 0.0 0.0 0.0 1.1 11.1 4.8 0.0 1.8

The results for 97 CRMs for zinc are shown in the control charts in Figure 12-2. CRM

summary results for zinc are listed in Table 12-4. Only one (1.0%) assay fell outside ± 3

SD.

TABLE 12-4 SUMMARY OF THE CRM RESULTS FOR ZINC

Salazar Resources Ltd. - Curipamba Project

PB-130 PB-140 Total

No. Assays 88 9 97 Minimum (ppm) 13,600 34,300 Maximum (ppm) 15,650 38,800 Average (ppm) 14,414 36,766 CRM (ppm) 14,450 38,500 - 3SD (ppm) 13,832 35,740 + 3SD (ppm) 15,068 41,260 No. values outside 3SD 1 0 1 % outside 3SD 1.1 0.0 1.0

www.rpacan.com



Rev. 0 Page 12-8

FIGURE 12-2 CERTIFIED REFERENCE MATERIALS – ZN

The results for 227 CRMs assayed for gold are shown in the control charts in Figure 12-

3. CRM summary results for gold are listed in Table 12-5. Thirty (13.2%) analyzes

returned values outside ± 3 SD. In general, the results from both laboratories are lower

than the standard reference sample grade. CU-155 was the CRM with the most failures

occurred and 23 of 24 failures were from Inspectorate. These failures should be

investigated to determine the source of the erratic results.

12,00012,50013,00013,50014,00014,50015,00015,50016,000

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pm)

Sample #

PB-130 - Zn Grade

Inspec Chemex Zn Standard -3 SD +3 SD

05,000

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Rev. 0 Page 12-9

FIGURE 12-3 CERTIFIED REFERENCE MATERIALS– AU

1.001.101.201.301.401.501.601.701.801.902.00

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CU-155 - Au Grade

Inspec Chemex Au Std - 3 SD +3 SD

0.000.501.001.502.002.503.003.504.004.505.00

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Rev. 0 Page 12-10


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Sample #

PM-1118 - Au Grade

Inspec Chemex Au Standard -3 SD +3 SD

0.000.200.400.600.801.001.201.401.601.80

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Rev. 0 Page 12-11

TABLE 12-5 SUMMARY OF THE CRM RESULTS FOR GOLD Salazar Resources Ltd. - Curipamba Project

CU-152 CU-155 CU-163 CU-175 PM-1118 PM-1123 Total

No. Assays 22 90 11 12 83 9 227

Minimum (g/t) 1.41 0.52 3.87 0.80 1.44 1.26

Maximum (g/t) 1.62 0.64 4.32 0.93 1.87 1.42

Average (g/t) 1.53 0.58 4.10 0.86 1.76 1.35

CRM (g/t) 1.613 0.605 4.35 0.88 1.824 1.42

- 3SD (g/t) 1.412 0.559 3.96 0.765 1.601 1.282

+ 3SD (g/t) 1.82 0.651 4.74 0.995 2.047 1.558

No. values outside 3SD 1 24 1 0 3 1 30

% outside 3SD 4.5 26.7 9.1 0.0 3.6 11.1 13.2

The results for 337 CRMs assayed for silver are shown in the control charts in Figure 12-

4. CRM summary results for silver are listed in Table 12-6. Two (0.6%) assays returned

values outside ± 3 SD. RPA notes that the analytical results for silver for CRMs CU-155

and PM-118 are consistently above and below, respectively, the certified means.

However, most analyses for these CRMs are within 2 SD and all are within 3 SD. This,

combined with the acceptable performance of the other silver standard analyses,

indicates that the laboratory performance for silver, based on the CRM analyses, is

acceptable and that the high and low bias in CRMs CU-155 and PM-118 may be

consistent with inter-laboratory analyses used to establish the standard statistics.

FIGURE 12-4 CERTIFIED REFERENCE MATERIALS – AG

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CU-145 - Ag Grade

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Rev. 0 Page 12-12


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6900

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1016

7020

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7260

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5016

7530

1674

4016

7610

Ag

(g/t)

Sample #

CU-155 - Ag Grade


85.00

90.00

95.00

100.00

105.00

110.00

1668

50

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00

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(g/t)

Sample #

CU-163 - Ag Grade


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Rev. 0 Page 12-13


0.00

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Ag

(g/t)

Sample #

CU-175 - Ag Grade


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1670

3016

7180

1672

7016

7360

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4016

7450

1676

2016

7700

Ag

(g/t)

Sample #

PB-130 - Ag Grade

Inspec Chemex Ag Standard - 3 SD + 3 SD

70.00

75.00

80.00

85.00

90.00

95.00

1650

20

1650

60

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60

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70

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Ag

(g/t)

Sample #

PB-140 - Ag Grade

Inspec Chemex Ag Standard +3 SD +3 SD

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Rev. 0 Page 12-14


TABLE 12-6 SUMMARY OF THE CRM RESULTS FOR SILVER Salazar Resources Ltd. - Curipamba Project

CU-145 CU-152 CU-155 CU-163 CU-175 PB-130 PB-140 PM-1118 PM-1123 Total

No. Assays 13 22 90 11 12 88 9 83 9 337

Minimum (g/t) 88.50 25.60 7.20 97.00 3.30 78.80 79.80 35.70 28.30

Maximum (g/t) 95.70 28.60 8.30 103.00 4.10 91.00 85.50 42.00 33.40

Average (g/t) 93.04 27.04 7.65 100.47 3.67 81.92 82.34 37.65 30.22

CRM (g/t) 93 27.23 7.34 99 4 82.45 84 38.45 31

- 3SD (g/t) 82.90 25.394 5.57 92.27 2.19 75.52 77.42 33.46 27.15

+ 3SD (g/t) 103.1 29.1 9.11 105.73 5.81 89.38 90.58 43.44 34.86

No. values outside 3SD 0 0 0 0 0 2 0 0 0 2

% outside 3SD 0.0 0.0 0.0 0.0 0.0 2.3 0.0 0.0 0.0 0.6

30.00

32.00

34.00

36.00

38.00

40.00

42.00

44.00

46.00

1634

7016

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5016

3590

1636

3016

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1016

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9016

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7016

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5016

3990

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3016

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1016

4150

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9016

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5016

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2016

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4016

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30

Ag

(g/t)

Sample #

PM-1118 - Ag Grade


22.00

24.00

26.00

28.00

30.00

32.00

34.00

36.00

1658

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Sample #

PM-1123- Ag Grade


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Rev. 0 Page 12-15

The results for 97 CRMs assayed for lead are shown in the two graphs in Figure 12-5.

CRM summary results for lead are listed in Table 12-7. Eight (8.2%) assays returned

values outside ± 3 SD. The lead contribution to the mineralization is relatively

insignificant. Nevertheless, all failures should be investigated by Salazar in a timely

manner to determine the source of the erratic results.

FIGURE 12-5 CERTIFIED REFERENCE MATERIALS – PB

5,0005,2505,5005,7506,0006,2506,5006,7507,0007,2507,5007,7508,0008,250

1634

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3016

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2016

7700

Pb

(ppm

)

Sample #

PB-130 - Pb Grade

Inspec Chemex Pb Standard - 3 SD + 3 SD

0

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Sample #

PB-140 - Pb Grade

Inspec Chemex Pb Standard -3 SD +3 SD

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Rev. 0 Page 12-16

TABLE 12-7 SUMMARY OF THE CRM RESULTS FOR LEAD Salazar Resources Ltd. - Curipamba Project

PB-130 PB-140 Total

No. Assays 88 9 97

Minimum (ppm) 6,440 40,700 Maximum (ppm) 7,492 49,000 Average (ppm) 7,157 44,678 CRM (ppm) 7,280 43,500 - 3SD (ppm) 6,689 41,250 + 3SD (ppm) 7,280 45,750 No. values outside 3SD 7 1 8

% outside 3SD 8.0 11.1 8.2

DUPLICATE PULP SAMPLES The Thompson-Howarth (T-H) precision plot can be used to compare results for all three

duplicates types (core duplicates, reject duplicates, and pulp duplicates). The core

duplicates are expected to have the lowest precision, followed by the coarse reject

duplicates. The pulp duplicates are expected to have the best precision as they are the

finest grain size and have been homogenized the most.

Salazar only has duplicate data for drill holes from 2007 and 2008. Duplicate data

available is only for pulp samples.

A total of 211 pulp duplicates were submitted to the same assay laboratory that analyzed

the original sample. The samples were taken at a pre-determined regular frequency and

mostly returned low grade results; therefore, they do not provide data verification in the

economic grade range. Outliers exist in the set of data for copper, silver, zinc, and lead.

Duplicate statistics are based on all samples after removing the outliers, if present, and

are displayed in Table 12-8.

The copper precision for pulp duplicates is 23% at approximately 1,000 ppm Cu (0.1%)

after removing six outliers in the dataset (Figure 12-6).

The gold precision for pulp duplicates is approximately 20% at 1 g/t Au after removing

three outliers in the dataset (Figure 12-7).

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Rev. 0 Page 12-17

The silver precision for pulp duplicates is approximately 19% at 4 g/t Ag after removing

five outliers in the dataset (Figure 12-8).

The zinc precision for pulp duplicates is approximately 19% at 2,000 ppm Zn (0.2%) after

removing six outliers in the dataset (Figure 12-9).

The lead precision for pulp duplicates is approximately 8% at 400 ppm Pb (0.04%) after

removing five outliers in the dataset (Figure 12-10).

The sample pulp duplicates have good correlation coefficients for all five metals;

however, the relative standard deviations (RSDs) that are in the 20% to 40% range are

very high for pulps. In general, the duplicates yielded lower values at lower grades,

suggesting that the laboratory may not have been blending the pulp bag before taking

the duplicate sample.

RPA recommends that future duplicates include quartered core and rejects. Duplicates

should be chosen to represent the range of grades expected and for a better

representation of the precision. A revision of laboratory procedures is recommended.

FIGURE 12-6 PRECISION CURVES FOR COPPER DUPLICATES

0%

5%

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35%

40%

0 1000 2000 3000 4000 5000

Pre

cisi

on

Mean Assay (Cu ppm)

Pulp Duplicates no outliers

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Rev. 0 Page 12-18

FIGURE 12-7 PRECISION CURVES FOR GOLD DUPLICATES

FIGURE 12-8 PRECISION CURVES FOR SILVER DUPLICATES

0%

5%

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30%

35%

40%

45%

50%

0 0.5 1 1.5 2 2.5 3 3.5

Pre

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Mean Assay (Au g/t)

Pulp Field Duplicates no outliers

0%

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20%

30%

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60%

0 1 2 3 4 5 6 7 8 9 10

Pre

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Mean Assay (Ag g/t)

Pulp Field Duplicates no outliers

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Rev. 0 Page 12-19

FIGURE 12-9 PRECISION CURVES FOR ZINC DUPLICATES

FIGURE 12-10 PRECISION CURVES FOR LEAD DUPLICATES

0%

10%

20%

30%

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50%

60%

70%

0 2000 4000 6000 8000 10000

Pre

cisi

on

Mean Assay (Zn ppm)


0%

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0 100 200 300 400 500 600 700 800 900 1000

Pre

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Mean Assay (Pb ppm)


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Rev. 0 Page 12-20

TABLE 12-8 PULP DUPLICATE STATISTICS Salazar Resources Ltd. - Curipamba Project

Copper (ppm) Gold (g/t) Silver (g/t) Lead (ppm) Zinc (ppm)

Original Duplicate Original Duplicate Original Duplicate Original Duplicate Original Duplicate Number of

Samples > DL (N) 205 205 208 208 208 208 206 206 205 205 Number of

outliers removed 6 6 3 3 3 3 5 5 6 6

Mean Assay 173.47 167.84 0.085 0.085 1.71 1.66 125.06 122.32 711.10 700.17

Maximum Assay 3,946 4,572 2.903 3.253 23.6 27.6 4,280 3,660 17,400 20,300

Minimum Assay 0.5 0.5 0.0005 0.0005 0.1 0.1 1 1 10 1

Median Assay 36 32 0.019 0.016 0.3 0.3 9 9 142 131

Variance 187,161 199,065 0.074 0.084 15.78 14.93 213,457 193,849 3,830,829 4,431,344

Std. Dev 433 446 0.273 0.290 3.97 3.86 462.01 440.28 1,957.25 2,105.08

Co-ef. Variation 2.49 2.66 3.20 3.41 2.33 2.33 3.69 3.6 2.75 3.01 Correlation Coefficient 0.978 0.99 0.98 0.995 0.989

RSD 39% 29% 30% 29% 34% % Difference

Between Means 3.2% 0.1% 2.9% 2% 1.5%

BLANK SAMPLES Blank samples were submitted from two types of blanks: (i) Reference blank material

BL112 purchased from WCM Minerals and (ii) a blank standard BK prepared by

Inspectorate Services, Peru. A BL112 assay was considered a failure if it returned a

value greater than three times the detection limit of the assay method. A BK assay was

considered a failure if the results were significantly higher than the certified means.

Salazar submitted 54 blank samples (Table 12-9) of which there were 15 failures (two for

copper, eight for gold, two for silver, two for lead, and one for zinc) (Figures 12-11 to 12-

15). The impact of these blank failures is considered to be of no consequence due to

the low grades reported, but the failures indicate that a minor sample contamination

problem exists.

In RPA’s opinion, these results are considered to be within acceptable limits.

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Rev. 0 Page 12-21

TABLE 12-9 PULP DUPLICATE STATISTICS WITHOUT OUTLIERS Salazar Resources Ltd. - Curipamba Project

Metal Ore No. Blanks No. Failures % Failures

Cu 54 2 4 Au 54 8 15 Ag 54 2 4 Pb 54 2 4 Zn 54 1 2

Total 270 15 6

FIGURE 12-11 COPPER FIELD BLANKS

FIGURE 12-12 GOLD FIELD BLANKS

0

20

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140

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Cu

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) Ass

ay

Data ordered by Hole_ID/Sample numberNominal Assay

Threshold

BL112

BK

0.00

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0.03

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Au

(g/t)

Ass

ay


Threshold

BL112

BK

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Rev. 0 Page 12-22

FIGURE 12-13 SILVER FIELD BLANKS

FIGURE 12-14 LEAD FIELD BLANKS

FIGURE 12-15 ZINC FIELD BLANKS

0.000.100.200.300.400.500.600.700.800.901.00

1647

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Ass

ay


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BK

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ay


Threshold

BL112BK

0

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pm) A

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BK

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Rev. 0 Page 12-23

LABORATORY CHECK SAMPLES Salazar has 549 pulp sample pairs analyzed in both laboratories, Inspectorate and ALS

Chemex, that are used as laboratory check assays. Statistics are presented in Table 12-

10. Scatter plots and quantile-quantile graphs are displayed in Figures 12-16 to 12-20.

The results show good correlation and no significant bias was detected. In general, the

Inspectorate results, particularly copper, silver and zinc, averaged less than ALS

Chemex results.

RPA considers the laboratory data to be within industry standards.

TABLE 12-10 LABORATORY CHECK STATISTICS Salazar Resources Ltd. - Curipamba Project

Copper (ppm) Gold (g/t) Silver (g/t) Lead (ppm) Zinc (ppm)

Inspectorate Chemex Inspectorate Chemex Inspectorate Chemex Inspectorate Chemex Inspectorate Chemex Number of

Samples > DL (N) 549 549 549 549 549 549 549 549 549 549

Mean Assay 22,289.56 23,022.69 3.49 3.47 71.10 72.91 4,052.28 4,133.24 36,491.61 38,117.10

Maximum Assay 211,400.00 209,000.00 94.60 94.00 2,000.00 2,160.00 172,000.00 172,000.00 509,000.00 527,500.00

Minimum Assay 2.00 2.00 0.01 0.00 0.10 0.10 1.00 1.00 11.00 3.00

Median Assay 1,058.00 1,020.00 0.25 0.24 5.90 5.50 148.00 153.64 1,654.00 1,713.00

Variance 1,517,482,400 1,619,571,566 65 64 33,728 36,267 178,886,012 187,919,093 6,437,064,331 7,000,185,373

Std. Dev 38,954.88 40,243.90 8.08 8.03 183.65 190.44 13,374.83 13,708.36 80,231.32 83,667.11

Co-ef. Variation 1.75 1.75 2.31 2.31 2.58 2.61 3.30 3.32 2.20 2.20 Correlation Coefficient 0.998 0.996 0.992 0.998 0.999

% Difference Between Means -3.3% 0.5% -2.5% -2.0% -4.5%

ww

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Salazar R




ovember 7, 2011

R

ev. 0 Page 12-24

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Rev. 0 Page 12-25

FIGURE 12-16 LABORATORY CHECKS FOR COPPER Q-Q PLOT

FIGURE 12-17 LABORATORY CHECKS FOR GOLD Q-Q PLOT

R² = 0.9991

0

50000

100000

150000

200000

250000

0 50000 100000 150000 200000 250000

Chem

ex A

ssay

(Cu

ppm

)

Inspectorate Assay (Cu ppm)

R² = 0.9991

0

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0 10 20 30 40 50

Chem

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(Au

g/t)

Inspectorate Assay (Au g/t)

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Rev. 0 Page 12-26

FIGURE 12-18 LABORATORY CHECKS FOR SILVER Q-Q PLOT

FIGURE 12-19 LABORATORY CHECKS FOR ZINC Q-Q PLOT

R² = 0.9991

0

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Chem

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R² = 0.9995

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Chem

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Inspectorate Assay (Zn ppm)

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Rev. 0 Page 12-27

FIGURE 12-20 LABORATORY CHECKS FOR LEAD Q-Q PLOT

RPA CHECK SAMPLES RPA collected six samples of split diamond drill core from the El Domo deposit and four

grab samples from El Gallo, Roble-1, and Roble prospects. All the samples were from

within the mineralized zones but were not intended to be representative of the zones.

The samples were delivered by RPA at ALS Chemex Laboratory in Quito, Ecuador, and

assayed in the ALS Chemex Laboratory in Lima, Peru, with gold determined by fire

assay and AA spectroscopy, silver by aqua regia digestion and AA spectrometry, and

base metals by aqua regia digestion and ICP. The results are shown in Table 12-11 and

demonstrate the presence of economic grades of Au, Ag, Cu, and Zn in the El Domo

deposit. Good grades of Cu, Au, and Zn were present in the El Gallo and Roble

samples.

In RPA’s opinion, the drilling results from Salazar are acceptable for use in resource

estimation. RPA makes the following recommendations:

1. Take field, reject and pulp duplicates on a regular basis and make sure the duplicates selected are representative of the resource grade distribution.

2. Investigate why the pulp precision levels are generally poor and implement changes to improve them.

3. Stop using the BK blank.

R² = 0.9988

0

50000

100000

150000

200000

0 50000 100000 150000 200000

Chem

ex A

ssay

(Pb

ppm

)

Inspectorate Assay (Pb ppm)

TABLE 12-11 RPA CHECK SAMPLES Salazar Resources Ltd. - Curipamba Project

RPA Salazar

Type Holeid Sample from to Au_G-t Ag_G-t Cu_ppm Pb_ppm Zn_ppm Au_G-t Ag_G-t Cu_ppm Pb_ppm Zn_ppm

Drill core CURI-70 163642 91.73 93 0.4 1.7 636 118 14,900 0.547 1.7 766 118 16,400

Drill core CURI-70 163657 106.8 107.85 0.11 6.1 2,110 12,800 22,200 0.095 5.2 2,290 15,500 24,600

Drill core CURI-106 163365 56 57 0.22 5.7 1,680 1,510 6,040 0.26 6.5 2,010 2,490 6,950

Drill core CURI-106 165379 69 70 9.77 42.3 88,000 2,270 28,700 10 42.1 104,500 2,310 25,700

Drill core CURI-106 165406 94 95 0.62 5.7 9,360 50 192 0.58 3.9 3,910 42 86

Drill core CRUI-123 166121 71.27 72.22 14.7 688 36,500 30,700 517,000 13.15 668 35,800 27,500 100,000 Averages 4.30 124.9 23,048 7,908 98,172 4.11 121.2 24,879 7,993.3 28,956

Grab sample El Gallo RPA-7 14.95 259 29,700 8,420 50,400 12.13 235 N/A N/A N/A (in 12m)

Grab sample El Gallo RPA-8 1.51 24.5 1,540 4,530 2,180 11.2 505 N/A N/A N/A (in 17m)

Grab sample Roble 1 RPA-9 26 507 33,500 127,500 484,000 N/A N/A N/A N/A N/A

Grab sample Roble RPA-10 0.25 14.6 3,590 1,885 9,230 N/A N/A N/A N/A N/A

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13 MINERAL PROCESSING AND METALLURGICAL TESTING Early stage mineralogical studies by GeoConsult and metallurgical test work by

Inspectorate Peru were conducted on samples from El Domo in 2009. This work is

considered very preliminary and the results are not deemed by RPA to be representative

of the deposit. The samples used were assay sample rejects that were not adequately

stored to prevent oxidation.

While the results from the Inspectorate Peru work were questionable, the metallurgical

test work did suggest that recovery by differential flotation is likely the most effective

process for recovering the valuable minerals, with production of a bulk Pb-Cu rougher

concentrate followed by a Zn concentrate. The bulk Pb-Cu concentrate could then be

further ground and separated into Cu and Pb concentrates. The results of the

mineralogy work suggest complex interlocking of some of the valuable sulphide minerals

including inclusions, rimming, and interstitial grains.

G&T Metallurgical Services Ltd. (G&T) of Kamloops, British Columbia, was

commissioned to undertake a metallurgical study of the El Domo mineralization under

the direction of RPA. A total of 208 kg of individual quartered core samples from El

Domo representing 98 intercepts from 12 separate diamond drill holes (CURI 52, 53, 54,

55, 56, 57, 60, 61, 62, 63, 64, and 67) were sent to G&T, arriving in two lots, one on

September 8 and the second on September 24, 2010. A master composite comprising

90 kg of the samples from seven drill holes was constructed by G&T under instructions

from Scott Wilson RPA. An objective of the testing at G&T was to better understand the

grinding requirements for liberating Zn from the Cu and Pb grains as well as pyrite and

gangue particles.

The G&T test program included a mineralogical analysis using QEMSCAN as well as a

Bond ball mill work index test, eight rougher flotation tests, and two cleaner flotation

tests. The test work started in October 2010.

The mineral content of the El Domo deposit is in weight: 11.2% copper sulphides, 0.7%

galena, 9.0% sphalerite, 57.6% pyrite 57.6%, and 21.4% gangue. The distribution of

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copper sulphides is: 83% chalcopyrite, 7% bornite, 1% chalcocite, and 9%

tennantite/tetrahedrite.

The mineral locking at a standard grind of 91 μm P80 indicates that copper sulphides and

sphalerite are primarily locked with pyrite and in multiphase, mostly with pyrite and

copper sulphides.

Additional mineralogical assessment - Bulk Mineral Analysis (BMA) - of sphalerite

particles was carried out due to extremely poor copper and zinc selectivity. BMA

revealed an unusually high concentration of copper present in sphalerite particles,

which, on average, was 1.1% copper by weight. In order to confirm these findings, both

feed and concentrate samples from the test program at G&T were sent to Surface

Science Western(SSW) at the University of Western Ontario for Optical Images and

Scanning Electron Microscope/Energy Dispersive X-ray (SEM/EDX) analysis and

confirmed that fine copper sulphide particles occurred as inclusions of variable size

within the sphalerite. This analysis further determined that not all sphalerite particles

contained copper; some particles were clean, containing no copper.

The Bond ball work index for the master composite is 11.6 kWh/t, which is indicative of a

moderately soft ore. It should be noted that this is only the specific grinding energy

required for a typical size reduction in a ball mill, i.e., from a feed size F80 of 1,500 μm to

a product size P80 of 80 μm. It is typical that finer grinding, i.e., to a P80 of 40 μm,

requires a higher specific grinding energy.

Results from the rougher flotation tests confirmed that a grind of 46 μm P80 was required

to get reasonable liberation of the valuable minerals. Cleaner flotation tests were carried

out with the idea that, after regrinding the copper rougher concentrate and floating it

again in the first cleaner, a cleaner tailings product with most of the remaining zinc could

be sent forward to the zinc circuit. The tests were unsuccessful in producing separate

copper and zinc concentrates. The poor selectivity was due to the high concentration of

copper sulphide particles within the sphalerite particles. The results indicate that copper

was 72% recovered into a final bulk concentrate, grading 27%. Zinc was 57% recovered

into a zinc concentrate, grading 49% zinc. The majority of the zinc was lost to the

copper circuit.

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Further testwork related to gold and silver deportment by SSW in a report dated July 18,

2011,, showed that there was approximately 61% visible gold in the Master Composite 1

(from drill core and used in metallurgical testing at G&T) sample. As well, of the

remaining gold, 85% was in pyrite. Pyrite will likely not be recovered when the copper

rougher concentrate is sent to a cleaning circuit, thereby reducing the gold recovery.

It may be possible to recover approximately 50% of the visible gold in a gravity

concentrate, but this will require further testwork.

Silver is mainly in the sub-microscopic size range, and will likely not be recovered by

gravity methods. As well, approximately 50% of the silver is associated with pyrite. A

mentioned before, pyrite will likely not be recovered in order to produce a higher grade

copper concentrate.

Overall gold recovery from concentrates and gravity may reach 55%, but will require

further metallurgical testwork to confirm.

Overall silver recovery may reach 40%, a result of the silver particle fineness and it`s

distribution.

In summary, the master composite sample from El Domo has proven to be challenging

from a metallurgical perspective, as fine grinding and concentrate regrinding are

necessary to liberate the valuable minerals and an optimal reagent scheme still needs to

be developed. However, G&T is of the opinion that a reasonably conventional flotation

flow sheet can be developed for the recovery of copper and zinc to separate

concentrates.

RPA recommends that the test work continue with the focus on a conventional flow

sheet employing fine grinding, rougher concentrate regrinding, and differential flotation of

separate copper-lead and zinc concentrates. Alternative recovery methods such as less

conventional flotation schemes, gravity recovery of precious metals, and leaching are

also recommended. It may be advantageous to produce lower grade concentrates in

order to maximize precious metal recovery.

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14 MINERAL RESOURCE ESTIMATE GENERAL STATEMENT The current Mineral Resource estimate for the El Domo deposit was prepared by James

Lavigne, P. Geo., and Elizabeth McMonnies, P. Geo., and is summarized in Table 14-1.

The Mineral Resource estimate is based on diamond drilling completed from 2008 to

2011 and the geological interpretation of the deposit completed by Salazar geological

staff. RPA calculated a net smelter return (NSR) value of US$50/t based on metal

prices, assumed operating costs, and other parameters, and used it as a cut-off to

supplement the geological interpretation of mineralized domains for resource estimation.

All blocks within the geological interpretation are reported as resource.

TABLE 14-1 EL DOMO MINERAL RESOURCE ESTIMATE - SEPTEMBER 29, 2011


Category Tonnes Copper Zinc Lead Gold Silver

(Mt) (%) (%) (%) (g/t) (g/t) Indicated 5.53 2.4 2.5 0.3 2.8 48.4 Inferred 1.46 1.9 2.8 0.3 2.4 52.2

Notes:

1. CIM definitions were followed for Mineral Resources. 2. Mineral Resources are estimated based on massive and semi-massive sulphide log interpretation

at a net smelter return cut-off of US$50 per tonne. 3. Metal prices used are US$3.50/lb Cu, US$1.15/lb Zn, US$1.15/lb Pb, US$1,400/oz Au and

US$26.00/oz Ag. 4. Metallurgical recovery factors assumed were 87% Cu, 88% Zn, 65% Pb, 60% Au, and 55% Ag. 5. Common industry values for smelter terms were assumed. 6. Bulk density was estimated by lens, based on specific gravity determinations for each rock type. 7. A minimum thickness of 2.0 metres was used.

DATABASE The Curipamba property drill hole database includes a total of 155 drill holes. Of these,

123 are within the Las Naves sector of the property, which hosts the El Domo deposit,

and the remaining holes are in the Sesmo Sur sector of the property.

The drill hole database was provided by Salazar in MS Excel format and comprises drill

hole collar coordinate data, downhole survey azimuth and dip data, lithology interval

data, and sample/assay interval data. The Excel data was imported into Gemcom

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Rev. 0 Page 14-2

software for resource estimation. RPA updated the downhole survey file to include

records at the collar (0 m depth). RPA set assay records with “less than” or “minus”

signs (“<” or “-“) in the Salazar database to values equal to one half of the analytical

detection limit. RPA completed data import validation routines and found no errors.

Based on data import validation and database validation completed for the current

estimate by RPA and the previous estimate by Scott Wilson RPA (Valliant et al., 2010),

RPA concludes that the El Domo database is adequate for resource estimation.

RESOURCE EVALUATION AND CUT-OFF GRADE The El Domo VMS deposit is characterized by a number of metals that potentially could

contribute to revenue in a future mining and processing operation. In order to assist in

the interpretation and evaluation of the deposit, RPA determined an NSR cut-off value

based on metal prices and assumed costs, recovery factors, and other parameters. The

main cost, recovery, and economic assumptions are listed in Table 14-2. Although the

metallurgical test work completed thus far on the El Domo mineralization is preliminary

and incomplete, RPA has utilized recovery factors based on experience with similar,

VMS type deposits. The NSR cut-off value, required to cover operational costs, was

estimated by RPA to be US$50 per tonne.

TABLE 14-2 ECONOMIC ASSUMPTIONS FOR CUT-OFF GRADE Salazar Resources Ltd. – Curipamba Project

Parameter Units Copper Lead Zinc Gold Silver Recovery % 87 65 88 60 55

Price US$ 3.50/lb 1.15/lb 1.15/lb 1,400/oz 26/oz NSR US$ 50.34/% 9.51/% 8.92/% 14.60/g/t 0.17/g/t

GEOLOGICAL INTERPRETATION AND GEOLOGY SOLIDS Drilling at the El Domo deposit has been completed at a regular 50 m grid spacing

(Figure 14-1). The geological interpretation that forms the basis for the current resource

estimate was completed by Salazar geologists and was provided to RPA as

interpretations on a series of 50 m spaced, north facing, vertical sections. An example of

a section is shown in Figure 14-2. RPA digitized the sectional interpretations in

Gemcom. RPA evaluated the interpretation and ensured that the digitized lines

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Rev. 0 Page 14-3

consistently included the lithological domain hosting mineralization logged as massive

sulphide and/or semi-massive sulphide. This interpretation was completed

independently of metal grade. Using a US$50 NSR cut-off value, RPA reassessed all of

the sections to include mineralization contiguous with massive or semi-massive sulphide

but within rock types not logged as massive or semi-massive sulphide.

Salazar has logged and interpreted a distinct andesite unit that limits the mineralization.

RPA has digitized the andesite, created a 3D solid, and used this interpretation to limit

(clip) the eastern limits of some of the lenses.

The interpretation resulted in the creation of 11 mineralization wireframes (Figure 14-3A

and 14-3B). The Main Zone forms a consistently oriented relatively flat body. RPA

notes that this body forms a “C” shape and that the dominant dip in the northern part of

the body is shallow to the east and in the southern part of the body is shallow to the

west. RPA also notes that the central part of the Main Zone is characterized by multiple

mineralization types per drill hole. Other zones with continuity demonstrated by massive

sulphide intersections in multiple holes occur parallel to and in the immediate hanging

wall of the Main Zone and immediately under the andesite. The interpretation of

mineralization at El Domo includes a number of lenses that are currently supported by

limited drilling (Figure 14-3).

A surface topography wireframe was built from a file provided by Salazar. The

shallowest point of the deposit lies approximately 40 m below surface. Most of the

deposit is more than 50 m below surface, and the resource wireframes did not need to

be trimmed to topography.

694,600 695,400 695,600

9,8

56,0

00

695,200695,000694,800

9,8

55,6

00

9,8

55,8

00

9,8

55,0

00

9,8

55,2

00

9,8

55,4

00

9,8

54,6

00

9,8

54,8

00

9,8

56,0

00

9,8

55,6

00

9,8

55,8

00

9,8

55,0

00

9,8

55,2

00

9,8

55,4

00

9,8

54,6

00

9,8

54,8

00

9,8

54,4

00

694,600 695,200695,000694,800

0 100

Metres

200 300 400

N

November 2011

Diamond Drill Hole PlanEl Domo Deposit


Curipamba ProjectEcuador

Figure 14-1

14-4

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VMS + Semi-massive

Grainstone

Andesite

Basalto

T

BxV

And

B

Gr

VMS

SMS

BxH

Gy

DaBx

RhyBX

Fault

Soil

SW

T-RHY

0 - 0.05

0.05 - 0.2

0.2 - 0.5

0.5 - 1.0

> 1.0

Legend forSIMB

Legend forAU PPM

0 20 100

Metres

40 60 80


Curipamba Project

El Domo DepositVertical Cross-Section 9855100 N


Ecuador

Figure 14-2

14-5

ww

w.rp

acan

.co

m

Andesite

Main

North1

North2

Up3

Up1

Up2

Andesite

Main

D3D4

Down2

Down1

Down6

Down5

November 2011

Curipamba Project

3D View of El DomoResource Wireframes


Ecuador

Figure 14-3A - 3D View of Resources Wireframes - Looking Down

Figure 14-3B - 3D View of Resources Wireframes - Footwal of the Andesite and Main Zone

14-6

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ASSAY AND COMPOSITE STATISTICS The resource wireframes for the eleven zones contain a total of 874 assay intervals from

81 drill holes. As indicated by the summary statistics in Table 14-3 and the histograms

in Figures 14-4 to 14-8, the distributions of all metals being considered are strongly

skewed.

TABLE 14-3 STATISTICS OF ASSAYS IN RESOURCE WIREFRAMES Salazar Resources Ltd. – Curipamba Project

Length Au g/t Ag g/t Cu % Pb% Zn %

Number of assays 874 874 874 874 874 874 Minimum 0.21 0.0030 0.1000 0.0008 0.0003 0.0019 Maximum 2.59 94 2,160 20.9 17.2 52.75 Mean 1.02 3.09 64.99 2.29 0.36 3.40 Weighted Mean based on Lengths

2.95 59.61 2.10 0.34 3.04

Median 1.00 1.04 15.00 0.83 0.04 0.58 Standard Deviation 0.35 6.53 161.49 3.41 1.17 7.54 Range 2.38 94.00 2,159.90 20.90 17.20 52.75 Lower Quartile 0.81 0.44 6.30 0.18 0.01 0.10 Upper Quartile 1.18 2.70 49.00 2.74 0.18 2.56 Skewness 0.62 6.13 6.65 2.36 7.55 3.71 Coefficient of Variation 0.34 2.11 2.48 1.49 3.24 2.22

FIGURE 14-4 GOLD ASSAY HISTOGRAM – ALL LENSES

0

50

100

150

200

250

300

350

400

450

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95

Num

ber o

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Au g/t

Frequency

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FIGURE 14-5 COPPER ASSAY HISTOGRAM – ALL LENSES

FIGURE 14-6 SILVER ASSAY HISTOGRAM – ALL LENSES

FIGURE 14-7 LEAD ASSAY HISTOGRAM – ALL LENSES

050

100150200250300350400450500

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Num

ber o

f Sam

ples

Cu %

Frequency

0

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0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300

Num

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Frequency

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900

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

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FIGURE 14-8 ZINC ASSAY HISTOGRAM – ALL LENSES

CAPPING OF HIGH GRADE ASSAY VALUES The positively skewed histogram distributions of the metals in the El Domo deposit

indicate the necessity to evaluate the assay data for the grade interpolation strategy, to

establish outlier populations, and to determine the requirement and level for grade

capping. Assays from all zones were combined and evaluated using a combination of

histograms, probability plots, and decile analyses. The capping values determined by

RPA are contained in Table 14-4, which also includes an assessment of the effect of

applying the grade capping values. The plots used for the grade capping analysis are

contained in the Appendix 2.

TABLE 14-4 IMPACT OF CAPPING LEVEL Salazar Resources Ltd. – Curipamba Project

Statistic Au g/t Ag g/t Cu % Pb% Zn %

Actual grade cap value 22 400 17 8 20 Number of samples capped 18 31 5 4 38 Percent of samples capped 2.06 3.55 0.57 0.46 4.35 Total core length capped 16.21 28.43 4.54 3.70 32.49 Percent of total core length capped 1.82 3.19 0.51 0.41 3.64 Percent decrease in grade 10.19 17.52 0.57 5.04 17.20 Percent decrease in grade x length 0.19 0.56 0.003 0.02 0.63 Decrease in coefficient of variation 0.49 0.77 0.02 0.38 0.42 Percent decrease in coefficient of variation 30.32 45.06 1.27 13.46 23.27

0

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0 5 10 15 20 25 30 35 40 45 50 55

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COMPOSITING Capped assays were composited to two metre lengths. The assays were composited

within the mineralization zone wireframes in a downhole direction. This process resulted

in the creation of composites shorter than two metres at the end of the zone intersection.

For partial composites less than one metre, RPA added the length to the previous (i.e.,

uphole) full two metre composite and calculated the length weighted average grades for

all the metals and for composites. For partial composites shorter than two metres and

longer than one metre RPA used the actual partial composite.

Summary statistics of the 447 composites, to be used for grade interpolation, are

summarized in Table 14-5 and corresponding histograms are shown in Figures 14-9 to

14-13.

TABLE 14-5 STATISTICS OF COMPOSITES IN RESOURCE WIREFRAMES Salazar Resources Ltd. – Curipamba Project

Length Au g/t Ag g/t Cu % Pb% Zn %

Number of Composites 447 447 447 447 447 447 Minimum 1.00 0.0052 0.1000 0.0067 0.0003 0.0073 Maximum 2.94 22.00 400.00 15.88 5.95 20.00 Mean 2.00 2.60 49.13 2.09 0.31 2.52 Median 2.00 1.17 18.07 1.06 0.06 0.87 Standard Deviation 0.25 3.65 72.42 2.76 0.70 3.88 Range 1.94 21.99 399.90 15.88 5.95 19.99 Lower Quartile 2.00 0.59 8.17 0.33 0.01 0.15 Upper Quartile 2.00 2.84 57.49 2.61 0.25 2.98 Skewness -0.27 2.73 2.57 2.29 4.73 2.28 Coefficient of Variation 0.12 1.40 1.47 1.32 2.29 1.54

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FIGURE 14-9 GOLD ASSAYS COMPOSITE HISTOGRAM – ALL LENSES

FIGURE 14-10 COPPER ASSAYS COMPOSITE HISTOGRAM – ALL

LENSES

0

50

100

150

200

250

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Freq

uenc

y

Au g/t (Comp)

Histogram

0

50

100

150

200

250

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Freq

uenc

y

Cu % (Comp)

Histogram

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FIGURE 14-11 SILVER ASSAYS COMPOSITE HISTOGRAM – ALL LENSES

FIGURE 14-12 LEAD ASSAYS COMPOSITE HISTOGRAM – ALL LENSES

0

20

40

60

80

100

120

140

160

0 50 100 150 200 250 300 350 400

Freq

uenc

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Ag g/t (Comp)

Histogram

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FIGURE 14-13 ZINC ASSAYS COMPOSITE HISTOGRAM – ALL LENSES

DENSITY Salazar completed 536 Specific Gravity (SG) determinations on drill core from the El

Domo deposit. The SG was completed using the water immersion method on limited-

length sub-samples of sample intervals. Therefore, RPA considers that the SG data is

representative of logged rock types but is not representative of the complete sample

interval and analytical metal grades. RPA recommends that Salazar endeavour to

acquire SG measurements of full sample lengths, to the extent that the core (rock quality

designation, or RQD) permits, thus providing direct information relating density to grade.

RPA compiled the SG data and determined the average SG for the major rock types

(Table 14-6).

0

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Freq

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TABLE 14-6 AVERAGE SG DETERMINATIONS BY ROCK TYPE Salazar Resources Ltd. – Curipamba Project

Lithology Total Length Average Max Min

VMS 124.00 3.86 2.71 4.65 SMS 23.72 3.44 2.24 4.46

T-RHY 2.34 3.37 2.65 4.08 SW 1.00 3.13 3.13 3.13

DaBx 6.30 3.12 2.57 3.78 BxH 18.96 3.10 2.56 3.77 BxV 3.68 3.04 2.81 3.42 Gr 25.17 2.98 2.50 4.36 Gy 0.96 2.82 2.82 2.82 B 1.95 2.67 2.50 2.84 T 1.00 2.45 2.45 2.45

Rhy 2.12 2.27 2.20 2.33

TREND ANALYSES AND VARIOGRAPHY RPA evaluated the spatial distribution of metals in the Main Zone through contouring in

plan, contouring in 3D using Leapfrog 3D software, and variography. The results of the

2D and 3D contouring are used in the formulation of the grade interpolation plan and in

model validation. Diagrams of grade contours are presented below in conjunction with

block model validation. The grade data was evaluated to determine if trends existed in

grade distribution of the various metals with respect to the position of the hanging wall

and footwall, however, no clear trend was evident. Variography was completed on the

Main Zone using Cu, Zn, and Au grade capped composite data. The range of the Cu

omni-directional variogram is approximately 125 m (Figures 14-14 and 14-15).

Otherwise, the study did not yield conclusive grade directional trends and therefore did

not result in reliable spatial models. This may be due to minor faulting associated with

post-mineralization uplift that has offset the zone. RPA recommends that this

interpretation be confirmed and further variography completed as Salazar continues

geological investigation of the El Domo deposit.

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FIGURE 14-14 OMNI-DIRECTIONAL VARIOGRAM CU

FIGURE 14-15 DOWNHOLE VARIOGRAM CU

BLOCK MODEL The block model used for the estimation of the El Domo resources consists of 5 m x 5 m

x 2 m blocks oriented parallel to the El Domo grid system. The extents and dimensions

of the block model are summarized in Table 14-7.

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TABLE 14-7 BLOCK MODEL DIMENSIONS Salazar Resources Ltd. – Curipamba Project

Easting (X) Northing (Y) Elevation (Z)

From 694,822.50 9,854,822.50 931 To 695,422.44 9,855,722.40 751

Extent (m) 600.00 9,000.00 180

Column Row Level Block size (m) 5 5 2 No. of blocks 120 180 90

ROCK MODEL The blocks comprising the block model were coded by their occurrence within the

respective mineralization wireframes. The fraction (volume) for each block occurring

within a mineralization wireframe is recorded.

DENSITY MODEL For the purposes of block density estimation, and subsequent tonnage evaluation, the

SG was assumed to be representative of the in-situ bulk density. A density was applied

to each lens where the density is the cumulative length weighted average SG for all rock

types occurring in the lens (Table 14-8).

TABLE 14-8 WEIGHTED SG IN RESOURCE WIREFRAMES Salazar Resources Ltd. – Curipamba Project

Wireframe

Lenses Weighted

SG Down 3.94 D3D4 3.15 Down5 3.13 Down6 2.24 Down7 3.24 Main 3.64

North1 3.41 North2 2.79

Up1 3.05 Up2 3.85 Up3 3.55

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GRADE INTERPOLATION AND GRADE MODEL Grades for Cu, Zn, Pb, Ag, and Au were interpolated into all blocks occurring wholly or

partially within the mineralization zone wireframes. Assay composites used for grade

interpolation were restricted to the respective zones. Grades in the Main Zone were

estimated in three passes using inverse distance to power three (ID3) and utilizing a flat

lying ellipse orientation with north-south elongated anisotropy. For the Main Zone and

the larger zone underlying the andesite, a minimum of two holes was required for grade

assignment in the first two passes. The smaller zones and those zones characterized by

one or two holes were interpolated using an ellipse that best approximated the zone

orientations. The interpolation methods and parameters are summarized in Table 14-9.

Given the lack of a reliable variogram model to constrain Ordinary Kriging, this method

was not used. However, RPA recommends that, with continued geological interpretation

and variography studies, Ordinary Kriging be evaluated as an interpolation method in

future resource estimates of the El Domo deposit.

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TABLE 14-9 INTERPOLATION PARAMETER SUMMARY Salazar Resources Ltd. – Curipamba Project

Domain Block Model Code

Pass Method Orientation Range Minimum Samples

Maximum Samples

Maximum Samples per Hole

Minimum Holes

Main 10 1 ID3 3/0/0 75/150/50 4 12 3 2

Main 10 2 ID3 3/0/0 100/200/75 4 12 3 2

Main 10 3 ID3 3/0/0 100/200/75 1 12 - 1

Down 40 1 ID2 0/10/0 100/100/15 2 12 - 1

Down 40 2 ID2 0/10/0 100/100/15 1 12 - 1

Down2 50 1 ID2 0/12/0 50/50/10 2 12 - 1

Down2 50 2 ID2 0/12/0 50/50/10 1 12 - 1

D3D4 60 1 ID3 3/0/0 75/150/50 4 12 3 2

D3D4 60 2 ID3 3/0/0 25/250/25 4 12 3 2

D3D4 60 3 ID3 3/0/0 25/250/25 1 12 - 1

Down5 80 1 ID2 -10/-38/44 50/50/10 2 12 - 1

Down5 80 2 ID2 -10/-38/44 50/50/10 1 12 - 1

Down6 140 1 ID2 0/6/0 75/75/10 2 12 - 1

Down6 140 2 ID2 0/6/0 75/75/10 1 12 - 1

North1 90 1 ID2 0/23/0 75/75/10 2 12 - 1

North1 90 2 ID2 0/23/0 75/75/10 1 12 - 1

North2 100 1 ID2 0/-15/0 50/50/10 2 12 - 1

North2 100 2 ID2 0/-15/0 50/50/10 1 12 - 1

Up1 110 1 ID3 3/0/0 20/125/20 4 12 3 2

Up1 110 2 ID3 3/0/0 25/250/25 4 12 3 2

Up1 110 3 ID3 3/0/0 25/250/25 1 12 - 1

Up2 120 1 ID3 3/0/0 20/125/20 4 12 3 2

Up2 120 2 ID3 3/0/0 25/250/25 4 12 3 2

Up2 120 3 ID3 3/0/0 25/250/25 1 12 - 1

Up3 130 1 ID3 3/0/0 20/125/20 4 12 3 2

Up3 130 2 ID3 3/0/0 25/250/25 4 12 3 2

Up3 130 3 ID3 3/0/0 25/250/25 1 12 - 1

BLOCK MODEL VALIDATION The summary statistics of the grade block models (Table 14-10) compared to the

summary statistics of the composites indicate a similarity in means and shifts in the other

summary statistics that are consistent with the change of support from composites to

blocks. As a further test for global representation of the underlying sample data, the

resource model is compared with a nearest neighbour block model (Table 14-11).

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TABLE 14-10 BLOCK MODEL SUMMARY STATISTICS Salazar Resources Ltd. – Curipamba Project

Cu % Pb% Zn % Au g/t Ag g/t

Number of Blocks 57,006 57,006 57,006 57,006 57,006 Minimum 0.00 0.00 0.00 0.00 0.00 Maximum 15.57 5.55 18.54 21.88 387.07 Mean 2.30 0.31 2.59 2.72 49.17 Median 1.53 0.15 1.82 1.82 32.12 Standard Deviation 1.78 0.45 2.52 2.41 48.86 Range 15.57 5.55 18.54 21.88 387.07 Lower Quartile 0.90 0.06 0.76 1.04 16.45 Upper Quartile 2.87 0.40 3.73 3.41 68.92 Skewness 1.75 3.45 1.61 2.45 2.10 Coefficient of Variation 0.84 1.42 0.96 0.92 0.98

TABLE 14-11 RESOURCE MODEL – NN MODEL COMPARISON


Resource Model Nearest Neighbour Model

Zone Tonnage Cu Zn Pb Au Ag Cu Zn Pb Au Ag (tonnes) (%) (%) (%) (g/t) (g/t) (%) (%) (%) (g/t) (g/t)

DOWN1 94 1.15 3.88 0.56 3.38 96.70 1.13 3.72 0.56 2.90 82.67 DOWN2 47 0.52 3.93 0.57 1.83 76.52 0.69 6.71 0.69 1.81 102.42 D3D4 454 1.72 1.56 0.08 1.22 22.12 1.79 1.89 0.08 1.46 23.97 DOWN5 24 0.37 1.37 0.03 1.61 52.18 0.24 1.39 0.03 1.85 61.17 DOWN6 44 0.58 1.63 0.12 0.94 16.12 0.25 1.20 0.11 0.68 11.09 MAIN 5,525 2.40 2.54 0.32 2.80 48.37 2.21 2.43 0.32 2.69 48.58 NORTH1 71 2.68 10.27 1.38 8.14 203.35 2.66 10.06 1.28 7.84 192.12 NORTH2 7 2.23 0.92 0.06 0.10 17.59 2.23 0.92 0.06 0.10 17.59 UP1 264 1.22 1.59 0.14 2.14 42.49 1.26 1.59 0.17 2.31 43.06 UP2 57 3.18 2.26 0.21 2.77 78.26 3.79 2.52 0.23 3.34 93.78 UP3 402 2.95 3.45 0.30 3.00 53.37 3.10 3.34 0.29 3.00 57.30 Total 6,989 2.30 2.59 0.31 2.72 49.17 2.17 2.53 0.31 2.65 49.70

The value and distribution of block grades were evaluated on vertical sections and

compared with the assay values posted on drill hole traces. The comparison indicates an

acceptable correlation of block and assay grades. An example is contained in Figure

14-16. Similarly, for the Main Zone, plans of contoured assay grades were compared

with plans of block model grade and also indicate an acceptable correlation (Figures 14-

17 to 14-19).

Salazar completed a sectional polygonal resource estimate of the El Domo deposit

based on sectional interpretation and tabulation in a spreadsheet. The polygonal

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resource estimate provides a very good yardstick for comparing and evaluating the

current resource model (Table 14-12).

TABLE 14-12 RESOURCE MODEL AND POLYGONAL MODEL COMPARISON


Model Tonnes Copper Zinc Lead Gold Silver

(Mt) (%) (%) (%) (g/t) (g/t) Resource Block Model 6.99 2.304 2.586 0.307 2.722 49.168 Polygonal Model 6.29 2.500 3.500 0.400 3.498 71.480

In general, the increase in tonnage and the decrease in grade in the current estimate

relative to the Salazar estimate are consistent with the fundamental differences in

polygonal x geostatistical resource estimation methodology for positively skewed grade

distributions. Specifically, variances in the current model relative to the polygonal

estimate are due to:

• Increase in tonnage due to the inclusion, locally, of low grade massive and semi-massive sulphide in the current model;

• Decrease in grade due to the inclusion, locally, of low grade massive and semi-massive sulphide in the current model;

• Application of grade capping resulting in a decrease in overall average grades.

695,100 E695,050 E695,000 E694,900 E

900 m

850 m

800 m

0 10

Metres

20 30 40 50Legend: Cu %

0.01000 - 0.00010

0.00010 - 1.00000

1.00000 - 2.00000

2.00000 - 3.00000

3.00000 - 4.00000

4.00000 - 5.00000

5.00000 - 6.00000

6.00000 - 7.00000

7.00000 - 8.00000

8.00000 - 9999.00000

November 2011

Vertical Section 5150 NBlock Model Cu Contours

and Drill Holes



Figure 14-16

14-21

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9,855,200

695,0

00

9,855,400

695,2

00

9,855,000

9,855,200

9,855,400

9,855,000

695,0

00

695,2

00

1 %

2 %

3 %

4 %

5 %

Cu (%)

0 50 100

Metres

0 50 100

Metres

NN

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Plan View Cu Contours andBlock Model - El Domo Deposit



Figure 14-17

14-22

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9,855,200

695,0

00

9,855,400

695,2

00

9,855,000

9,855,200

9,855,400

9,855,000

695,0

00

695,2

00

1 %

2 %

3 %

4 %

5 %

Zn (%)

10 %

0 50 100

Metres

0 50 100

Metres

NN

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Plan View Zn Contours andBlock Model - El Domo Deposit



Figure 14-18

14-23

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9,855,200

695,0

00

9,855,400

695,2

00

9,855,000

9,855,200

9,855,400

9,855,000

695,0

00

695,2

00

1 g/t

2 g/t

3 g/t

4 g/t

5 g/t

Au (g/t)

10 g/t

0 50 100

Metres

0 50 100

Metres

NN

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Plan View Au Contours andBlock Model - El Domo Deposit



Figure 14-19

14-24

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MINERAL RESOURCE ESTIMATE AND CLASSIFICATION The Main Zone of mineralization is interpreted by Salazar as a continuous horizon of

massive sulphide and/or semi-massive sulphide. It occurs within a distinct fragmental

rock unit and therefore has a demonstrated stratigraphic position and control. It is

currently delineated by a regular 50 m by 50 m spaced drill pattern. Based on the

geology and drill spacing, RPA classifies the entire Main Zone as Indicated Resource.

RPA notes, however, that the Main Zone is characterized by multiple mineralized

intersections per hole in the central part and that the northern segment has an average

east dip whereas the southern segment has an average west dip. RPA recommends

that Salazar refine interpretation of the Main Zone based on increased sampling to better

define internal grade distribution. Pending the conclusions of continued geological

interpretation of the Main Zone, RPA recommends that an unfolding routine be

considered in future resource estimation. These recommendations could also lead to a

higher resource classification.

The other zones are variably informed with one or more drill holes. Those zones

supported by less than three drill holes have been classified as Inferred. Some zones,

although with known stratigraphic positions, are classified as Inferred based on both

apparent lithological and grade variability. The interpretation of these zones has been

aided by application of NSR cut-off values.

The Mineral Resources at El Domo are listed by zone in Table 14-13 and are

summarized in Table 14-1, which represents the current Mineral Resource statement for

the El Domo deposit. The Indicated Resources (Main Zone) and the Inferred Resources

are illustrated on the drill hole plan in Figure 14-20.

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TABLE 14-13 EL DOMO MINERAL RESOURCE ESTIMATE – SEPTEMBER 29, 2011


Category / Tonnes Copper Lead Zinc Gold Silver Zone ('000) (%) (%) (%) (g/t) (g/t)

Indicated Main 5,525 2.40 2.54 0.32 2.80 48.37

Total Indicated 5,525 2.40 2.54 0.32 2.80 48.37

Inferred DOWN1 94 1.15 3.88 0.56 3.38 96.70

DOWN2 47 0.52 3.93 0.57 1.83 76.52 D3D4 454 1.72 1.56 0.08 1.22 22.12 DOWN5 24 0.37 1.37 0.03 1.61 52.18 DOWN6 44 0.58 1.63 0.12 0.94 16.12 NORTH1 71 2.68 10.27 1.38 8.14 203.35 NORTH2 7 2.23 0.92 0.06 0.10 17.59 UP1 264 1.22 1.59 0.14 2.14 42.49 UP2 57 3.18 2.26 0.21 2.77 78.26 UP3 402 2.95 3.45 0.30 3.00 53.37 DOWN1 94 1.15 3.88 0.56 3.38 96.70

Total Inferred 1,465 1.94 2.76 0.27 2.42 52.20 Notes:

1. CIM definitions were followed for Mineral Resources. 2. Mineral Resources are estimated based on massive and semi-massive sulphide log interpretation

at a net smelter return cut-off of US$50 per tonne. 3. Metal Prices used are US$3.50/lb Cu, US$1.15/lb Zn, US$1.15/lb Pb, US$1,400/oz Au and

US$26.00/oz Ag. 4. Metallurgical recovery factors assumed were 87% Cu, 88% Zn, 65% Pb,60% Au, and 55% Ag. 5. Common industry values for smelter terms were assumed. 6. Bulk density was estimated by lens, based on specific gravity determinations for each rock type. 7. A minimum thickness of 2.0 metres was used. 8. Totals may not represent the sum of the parts due to rounding.

COMPARISON WITH THE 2010 RESOURCE ESTIMATE. The results of the 2010 Resource Estimate are compared with the results of the current

estimate in table 14-14 which indicates both a large tonnage increase and a consistent

decrease in grade of all metals in the current estimate relative to the 2010 results.

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TABLE 14-14 STATISTICS OF ASSAYS IN RESOURCE WIREFRAMES, 2010 AND CURRENT RESOURCE ESTIMATES

Salazar Resources Ltd. – Curipamba Project Resource Estimate

Category Tonnes Copper Lead Zinc Gold Silver (Mt) (%) (%) (%) (g/t) (g/t)

2010 Indicated 0.62 3.7 0.4 4.2 3.0 98.0 Inferred 2.50 3.2 0.4 4.3 4.3 79.5

Current

Indicated 5.53 2.4 0.3 2.5 2.8 48.4 Inferred 1.46 1.9 0.3 2.8 2.4 52.2

The 2010 estimate was based on 18 diamond drill holes whereas the current resource

was based on 78 diamond drill holes and similarly there were 186 samples considered in

the 2010 estimate and 874 assays in the current estimate (Table 14-15). The increase

in tonnage of the of the current resource relative to the 2010 estimate is due to Salazar

successfully completing its objective of expanding the El Domo resource with the recent

drilling. RPA notes that the decrease in resource grade is consistent with a decrease in

assay grade in the current database relative to the 2010 assay database (Tale 14-15).

Other factors that have contributed to the decrease in grade of the current resource

relative to the 2010 resource estimate are related to modelling methodology and

parameters that include incorporation of all massive and semi-massive sulphide

intersections and application of assay top cutting in the current estimate.

TABLE 14-15 STATISTICS OF ASSAYS IN RESOURCE WIREFRAMES, 2010 AND CURRENT RESOURCE ESTIMATES


Length Cu % Pb % Zn % Au g/t Ag g/t 2010 Estimate

No. of Assays 186 186 186 186 186 186 Minimum 0.52 0.0 0.0 0.0 0.0 0.1 Maximum 2.3 15.5 7.6 41.4 29.8 1221.0 Mean 1.12 3.4 0.4 4.4 4.2 90.8

Current Estimate

No. of Assays 874 874 874 874 874 874 Minimum 0.21 0.0 0.0 0.0 0.0 0.1 Maximum 2.59 20.9 17.2 52.8 94.0 2160.0 Mean 1.02 2.3 0.4 3.4 3.1 65.0

695,400 695,600695,200695,000694,800

9,8

55,6

00

9,8

55,8

00

9,8

55,0

00

9,8

55,2

00

9,8

55,4

00

9,8

54,8

00

9,8

55,6

00

9,8

55,8

00

9,8

55,0

00

9,8

55,2

00

9,8

55,4

00

9,8

54,6

00

9,8

54,8

00

695,200695,000694,800

INFERRED

INDICATED

(other lenses projected to surface)

(outline projected to surface)

Main Lens

Legend:

Other Lenses

0 100

Metres

20015050

N

November 2011

Drill Plan withResources Outlines



Figure 14-20

14-28

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15 MINERAL RESERVE ESTIMATE There are no Mineral Reserves estimated for the Curipamba property at this time.

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16 MINING METHODS This section is not applicable.

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17 RECOVERY METHODS This section is not applicable.

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18 PROJECT INFRASTRUCTURE This section is not applicable.

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19 MARKET STUDIES AND CONTRACTS This section is not applicable.

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20 ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT SOCIAL ISSUES The following comments regarding social issues are based on conversations with

Salazar staff. RPA did not conduct any independent checking regarding this matter.

Salazar currently employs approximately 150 local residents as unskilled workers.

Professional staff, mostly geologists and surveyors, commute from Guayaquil, Quito, or

other large centres on various schedules.

Salazar has been actively communicating with local organizations and providing

workshops to residents, priests, and teachers regarding the Project and mining in

general.

A protest in June 2010 was reportedly agitated by NGOs and was suppressed by the

police. There are no issues with indigenous peoples.

ENVIRONMENTAL CONSIDERATIONS An Environmental Impact Assessment (EIA) report has been prepared and accepted,

effective December 15, 2009, by the Ministry of the Environment, allowing exploration to

be initiated. Environmental Auditing of EIA 2010 (Concessions Las Naves 1, Las Naves

2, Las Naves 5, Jordan 1, Las Naves, Las Naves 3, and Jordan 2) was granted. A

further EIA will be required prior to commencing exploitation.

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21 CAPITAL AND OPERATING COSTS This section is not applicable.

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22 ECONOMIC ANALYSIS This section is not applicable.

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23 ADJACENT PROPERTIES There are no adjacent properties as defined by NI 43-101.

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24 OTHER RELEVANT DATA AND INFORMATION No additional information or explanation is necessary to make this Technical Report

understandable and not misleading.

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25 INTERPRETATION AND CONCLUSIONS RPA offers the following recommendations and conclusions:

• The Project has met its objectives in that it has discovered a Cu-Zn-Au-Ag deposit and possibly a new VMS camp in Ecuador.

• Dr. Warren Pratt was the first to document and describe the Kuroko-type VMS

environment and has established a lithostratigraphy for the Las Naves/El Domo area. Dr. Jim Franklin identified a marker unit in the immediate hanging wall of the massive sulphide mineralization and defined the zoned nature of the mineralized system.

• The geological and structural knowledge gained from the exploration drilling will

provide a very practical and simple field exploration tool.

• Drilling of the El Domo prospect has defined an intact, upright, and only mildly disturbed Kuroko-type VMS deposit.

• The sampling, sample preparation, and sample analysis programs are

appropriate for the type of mineralization.

• The QA/QC program requires enhancement and a formal analysis and reporting procedure.

• Metallurgical testing suggested that recovery by differential flotation was likely the

most effective flow sheet for recovering the valuable minerals. The metallurgical test work completed to date remains preliminary and further metallurgical study is required.

• Mineral Resources were estimated based on interpretation of massive sulphide

and/or semi-massive sulphide and refined using a US$50 NSR cut off value.

• Indicated Mineral Resources are estimated at 5.53 million tonnes averaging 2.4% Cu, 0.3% Pb, 2.5% Zn, 2.8 g/t Au, and 48.4 g/t Ag.

• Inferred Mineral Resources are estimated at 1.46 million tonnes averaging 1.9%

Cu, 0.3% Pb, 2.8% Zn, 2.4 g/t Au, and 52.2 g/t Ag.

• In plan view, the Main Zone, which contains the Indicated Resource, forms a “C” shaped body, with the northern part dipping shallowly to the east and the southern part dipping shallowly to the west. The central part of the Main Zone is characterized by multiple intersections per drill hole. Other zones with continuity demonstrated by massive sulphide intersections in multiple holes occur parallel to and in the immediate hanging wall to the Main Zone and immediately under the andesite.

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• The El Domo mineralization is a VMS discovery that has a number of zones that are currently supported by limited drill hole intersections and require definition diamond drilling.

• Other prospects in the area require geophysical surveys and possibly diamond

drilling, e.g., La Vaquera and Agua Sante.

• Drilling on the Sesmo Sur prospect has encountered gold values that may help define the roots of a VMS system. More drilling is warranted to understand the structural/stratigraphic controls on the gold mineralization. Electromagnetic surveys may outline conductors indicative of massive sulphides adjacent to the area of current drilling.

• Prospecting, stream and soil geochemical surveys, geological mapping, IP

surveying, and diamond drilling have all been effectively employed to explore the Curipamba Project area.

• Improvements on drill hole directional surveys were noted in 2010/2011,

however, better control is still required on the three dimensional location of all drill holes.

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26 RECOMMENDATIONS RPA proposes the following recommendations:

• At the time of the RPA site visit, the Salazar non-magnetic down hole survey unit was being repaired. It is recommended that a replacement system be implemented and that the directional survey location program be continued for all future drilling.

• To provide consistency in the methods, one laboratory of the two currently used should be used as the primary laboratory for all analyses, and that the second laboratory should be used for check assays and analyses.

• The QA/QC program should be modified to include:

a. Analysis and interpretation of QA/QC results on a regular basis. b. Establishment of a protocol for non-compliant results on a timely manner

and a formal reporting system for QA/QC results. c. A revision of laboratory procedures. d. Taking field, reject, and pulp duplicates on a regular basis and making

sure the duplicates selected are representative of the resource grade distribution.

e. Investigating why the pulp precision levels are generally poor and implementing changes to improve them.

f. Discontinue the use of the BK blank sample.

• Salazar should acquire SG measurements of full sample lengths, to the extent that the core (RQD) permits, thus providing direct information relating density to grade.

• Metallurgical test work continue with the focus on a conventional flow sheet employing fine grinding, rougher concentrate regrinding, and differential flotation of separate copper-lead and zinc concentrates. Alternative recovery methods such as less conventional flotation schemes, gravity recovery of precious metals, and leaching are also recommended. It may be advantageous to produce lower grade concentrates in order to maximize precious metal recovery.

• Salazar should continue the investigation and interpretation of grade directional

trends and evaluate further variography.

• Salazar should continue to evaluate the deposit for metal zoneation as is typical in many VMS deposits. Definition of specific metal zoneations will likely have the effect of increasing capping grade levels.

• Ordinary Kriging should be evaluated as an interpolation method in future resource estimates for the El Domo deposit.

• VMS style mineralization is typically responsive to electromagnetic geophysical surveys. However, the typical conductive responses are not associated with the

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discoveries known to date on this deposit. Due to this fact, IP surveys have been employed with success and electromagnetic surveys have not been used due to their high cost and a belief that results will not add value. It is possible for conductive deposits still to be present. The geophysical study recommended is to integrate all data into a 3D model for a more thorough analysis of physical rock properties. Wireline physical rock properties collected at a continuous scale, with structural orientation from optical and acoustic televiewers, will provide the answers for future exploration. For example, sphalerite has a high density and normally some magnetic susceptibility is associated with the deposits. Constrained inversion of the potential fields will highlight other areas of interest. Conductivity/resistivity needs to be measured across a broad band. IP should still be conducted over these areas. Downhole Magnetometric Resistivity (DHMMR) should be tested for use, as it enhances current channelling and can identify disseminated deposits.

• A major focus of the first phase work program recommended is step-out drilling to

define the nature and extent of the El Domo deposit and to test other geological and geophysical targets that have been defined elsewhere on the property. The program budget also includes an airborne geophysical survey. The work program and budget are summarized in Table 26-1.

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TABLE 26-1 PROPOSED PHASE 1 PROGRAM AND BUDGET Salazar Resources Ltd – Curipamba Project

Program Proposed Cost

(US$) Project Management/Staff Costs 150,000 Geology – mapping, logging, compilation 150,000

Communications- telephone/fax/radio/hardware/software 10,000 Camp Costs 500,000 Supplies and core boxes 50,000

Ground geophysical follow-up 150,000 VTEM Survey - 3,000 line Km 500,000 Diamond Drilling - El Domo Step Out 8,000m@$110m 880,000 Other targets – Naves Central 3,000m@$110m 330,000 Other targets within the project 4,000m@$110m 440,000 Drill equipment maintenance 150,000

Assaying – geochemistry 100,000 Transportation – vehicles 50,000 Community Engagement and environmental compliance 150,000 Shipping- couriers, freight 30,000

Sub-total 3,640,000 Contingencies - 10% 364,000

Total 4,004,000

• RPA recommends, contingent on the successful completion of Phase 1, that Salazar complete a Preliminary Assessment (“PA”) of the project. RPA estimates a budget of CDN$150,000 for the completion of a PA.

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27 REFERENCES Buckle, J., 2009: Technical Report on the Curipamba Project, Bolivar Province, Central-

West Ecuador, NI 43-101 report, Salazar Resources, p. 267. Franklin, J.M., 2009: Observations on the Curipamba Massive Sulphide District,

Ecuador; report for Salazar Resources Ltd by Franklin Geoscience Ltd; 57 p. Galley, A., Hannington, M., and Jonasson, I., 2006: Volcanogenic Massive Sulfide

Deposits; Consolidation and Synthesis of Mineral Deposits Knowledge web site, Geological Survey of Canada

(http://gsc.nrcan.gc.ca/mindep/synth_dep/vms/index_e.php). G&T Metallurgical Services Ltd, 2011: Metallurgical Assessment of the El Domo Deposit

Ventanas, Los Rios Ecuador - KM2738, April 21, 2011. Hart, B., 2011: Optical Images and SEM/EDX analysis of the sphalerite grains Surface

Science Western - The University of Western Ontario, SSW Reference 07511.SAL, April 25, 2011.

Hughes, R.A., and Bermudez, R., 1997: Geology of the Cordillera Occidental of Ecuador

between 0–1°S. Proyecto de Desarollo Minero y Control Ambiental, Programa de Informacion Cartografica y Geologica, CODIGEM–BGS, Quito, Informe 4.

Inspectorate Services Peru S.A.C., 2009: Pruebas Metalurgicas Para Explorar El

Compartamiento del Mineral “El Domo VMS” / Proyecto Curipamba, Ecuador (and English translation), Prepared for Salazar Resources, July 2009.

Kerr, A.C., Aspden, J.A., Tarney, J., and Pilatasig, L.F., 2002: The nature and

Provenance of Accreted Oceanic Terranes in Western Ecuador: Geochemical and Tectonic Constraints: Journal of the Geological Society, London, v. 159, pp. 577-594.

Litherland, M., and Aspden, J.A., 1992: Terrane boundary reactivation—a control on the

evolution of the Northern Andes. Journal of South American Earth Sciences, 5, pp. 71–76.

Lydon, J.W., 1990: Volcanogenic Massive Sulphide Deposits Part 1: A Descriptive

Model; in Roberts, R.G. and Sheahan, P.A., eds., Ore Deposit Models, Geoscience Canada, Reprint Series 3, pp. 145-154.

Lahti, H., 2006: National Instrument 43 101 Technical Report on the Curipamba Project,

Ecuador Vancouver, Salazar Resources, p. 125. Mayor, J., 2010: Some observations on the geological structure at El Domo/Las Naves,

Bolivar Province, Ecuador; private report to Salazar Resources; 6 p. McCourt, W.J., Duque, P., and Pilatasig, L.F., 1997: Geology of the Western Cordillera

of Ecuador between 1–2°S. Proyecto de Desarrollo Minero y Control Ambiental, Programa de Informacion Cartografica y Geologica, CODIGEM–BGS, Quito, Informe 3.

http://gsc.nrcan.gc.ca/mindep/synth_dep/vms/index_e.php

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Pratt, W., 2008: Las Naves Project, Bolivar, Ecuador; report for Salazar Resources by

Specialized Geological Mapping Ltd., 42 p., 1 Appendix. Pratt, W., 2009: Sesmo Sur Project, Ecuador; report for Salazar Resources by

Specialized Geological Mapping Ltd., 27 p., 4 Appendices. Sangster, D.F., and Scott, S.D., 1976: Precambrian, strata-bound, massive Cu-Zn-Pb

sulphide ores of North America: in Wolf, K.H., ed., Handbook of Stratabound and Strataform Ore Deposits: Elsevier Scientific Publishing Co., Amsterdam, v. 6, pp. 130-221.

Schandl, E.S., 2009: Petrographic and Mineralogical Study of the Curipamba Project,

Central West Ecuador, Prepared for Salazar Resources, June 11, 2009. Scott, K., 2010: Status report on El Domo metallurgical test work, URS Scott Wilson,

November 22, 2010. Valliant, W.W., Pelz, P., and Cook, R.B., 2010: Technical Report on the Curipamba

Project, Central Ecuador. NI 43-101 Report, Scott Wilson Roscoe Postle Associates Inc., October 8, 2010.

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Rev. 0 Page 28-1

28 DATE AND SIGNATURE PAGE This report titled “Technical Report on the Curipamba Project, Ecuador” and dated

November 7, 2011, was prepared and signed by the following authors:

(Signed & Sealed) “James G. Lavigne” Dated at Toronto, ON November 7, 2011 James G. Lavigne, P.Geo. Associate Geologist (Signed & Sealed) “Elizabeth McMonnies” Dated at Toronto, ON November 7, 2011 Elizabeth McMonnies, P.Geo. Geologist

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Rev. 0 Page 29-1

29 CERTIFICATE OF QUALIFIED PERSON JAMES G. LAVIGNE I, James G. Lavigne, M.Sc., P.Geo., as an author of this report entitled “Technical Report on the Curipamba Project, Ecuador” prepared for Salazar Resources Ltd. and dated November 7, 2011, do hereby certify that: 1. I am an Associate Geologist with Roscoe Postle Associates Inc. of Suite 501, 55

University Ave Toronto, ON, M5J 2H7. 2. I am a graduate of Memorial University of Newfoundland in 1986 with a B.Sc. degree

in geology and the University of Ottawa in 1991 with a M.Sc. degree in geology. 3. I am registered as a Professional Geoscientist in the Province of Ontario (Reg. #

1895) and the Northwest Territories (Reg. # L1244). I have worked as a geologist for a total of 25 years since my graduation. My relevant experience for the purpose of the Technical Report is:

• Design and implementation of numerous exploration programs for base and precious metal mineralization.

• Exploration for VMS deposits in Western Newfoundland, Ontario, and Quebec. • Completion of numerous Mineral Resource Estimates. • Preparation of NI 43-101 Technical Reports 4. I have read the definition of "qualified person" set out in National Instrument 43-101

(NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI 43-101.

5. I visited the Project on July 1 to 4, 2011. 6. I am responsible for preparation of Section 14 of the Technical Report and

contributed to Sections 1, 25, and 26. 7. I am independent of the Issuer applying the test set out in Section 1.5 of NI 43-101. 8. I have had no prior involvement with the property that is the subject of the Technical

Report. 9. I have read NI 43-101, and the Technical Report has been prepared in compliance

with NI 43-101 and Form 43-101F1.

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Rev. 0 Page 29-2

10. To the best of my knowledge, information, and belief, the Technical Report contains

all scientific and technical information that is required to be disclosed to make the technical report not misleading.

Dated this 7th day of November, 2011 (Signed & Sealed) “James G. Lavigne” James G. Lavigne, M.Sc., P.Geo.

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Rev. 0 Page 29-3

ELIZABETH MCMONNIES I, Elizabeth McMonnies, P.Geo., as an author of this report entitled “Technical Report on the Curipamba Project, Ecuador” prepared for Salazar Resources Ltd. and dated November 7, 2011, do hereby certify that: 1. I am Geologist with Roscoe Postle Associates Inc. of Suite 501, 55 University Ave

Toronto, ON, M5J 2H7. 2. I am a graduate of Universidade Federal di Rio Grande do Sul, Brazil, in 1988 with a

B.Sc. degree in Geological Engineering. 3. I am registered as a Professional Geologist in the Province of Ontario (Reg. #0964).

I have worked as a mining engineer/geologist for a total of 20 years since my graduation. My relevant experience for the purpose of the Technical Report is: • Geological modelling and QA/QC experience • Senior Geologist and Laboratory Manager with DeBeers Canada and Brazil and

SGS Canada.

4. I have read the definition of "qualified person" set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI 43-101.

5. I visited the Project on July 1 to 4, 2011. 6. I am responsible for Sections 2 to 13 and 16 to 24 and contributed to Sections 1, 14,

25, and 26 of the Technical Report. 7. I am independent of the Issuer applying the test set out in Section 1.5 of NI 43-101. 8. I have had no prior involvement with the property that is the subject of the Technical

Report. 9. I have read NI 43-101, and the Technical Report has been prepared in compliance

with NI 43-101 and Form 43-101F1. 10. To the best of my knowledge, information, and belief, the Technical Report contains

all scientific and technical information that is required to be disclosed to make the technical report not misleading.

Dated this 7th day of November, 2011 (Signed & Sealed) “Elizabeth McMonnies” Elizabeth McMonnies, P.Geo.

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Rev. 0 Page 30-1

30 APPENDIX 1 LABORATORY PROCEDURES

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Rev. 0 Page 30-2

ALS CHEMEX LABORATORIES SAMPLE PREPARATION

TABLE 30-1 ALS CHEMEX MINERALS SAMPLE PREPARATION Salazar Resources Ltd. – Curipamba Project

ALS CODE Description

WE1 – 21 Received Sample Weight

LOG – 24 Pulp Login – Rcd w/o Barcode

TRA – 21 Transfer Sample

LOG – 22 Sample Login – Rcd w/o Barcode

CRU – 31 Fine crushing – 70% <2 mm

SPL – 21 Split sample – riffle splitter

PUL - 36 Pulverize 1.5 kg to 85% <75um ANALYTICAL PROCEDURES Au-AA-25 and 26 (Fire asay fusion with AAS finish): prepared sample is fused with a mixture of lead oxide, sodium carbonate, borax, silica and other reagents as required, inquarted with 6 mg of gold-free silver and then cupelled to yield a precious metal bead. The bead is digested in 0.5 mL dilute nitric acid in the microwave oven. 0.5 mL concentrated hydrochloric acid is then added and the bead is further digested in the microwave at a lower power setting. The digested solution is cooled, diluted to a total volume of 10 mL with de-mineralized water, and analyzed by atomic absorption spectroscopy against matrix-matched standards. ME-AA46 (Evaluation of ores and high grade materials by aqua regia digestion): A prepared sample (0.4) g is digested with concentrated nitric acid for one half hour. After cooling, hydrochloric acid is added to produce aqua regia and the mixture is then digested for an additional hour and a half. An ionization suppressant is added if molybdenum is to be measured. The resulting solution is diluted to volume (100 or 250) mL with demineralized water, mixed and then analyzed by atomic absorption spectrometry against matrix-matched standards. ME-ICP41 (Trace levels methods using conventional ICP-AES analysis): A prepared sample is digested with aqua regia in a graphite heating block. After cooling, the resulting solution is diluted to 12.5 mL with deionized water, mixed and analyzed by inductively coupled plasma-atomic emission spectrometry. The analytical results are corrected for inter-element spectral interferences. NOTE: In the majority of geological matrices, data reported from an aqua regia leach should be considered as representing only the leachable portion of the particular analyte.

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Rev. 0 Page 30-3

TABLE 30-2 ALS CHEMEX MINERALS ANALYTICAL PROCEDURES Salazar Resources Ltd. – Curipamba Project

Sample

Decomposition Method Code

Element Units Lower Limit

Upper Limits

Overlimit Method Description Instrument

Finish

ASY-AR01 AA46 Pb % 0.001 30 Ore grade Pb – aqua regia AAS

ASY-AR01 AA46 Ag ppm 1 1500 GRAV21 Ore grade Ag – aqua regia AAS

ASY-AR01 AA46 Zn % 0.001 60 Ore grade Zn – aqua regia AAS

ASY-AR01 AA46 Cu % 0.001 50 Ore grade Cu – aqua regia AAS

FA-FU03 AA25 Au ppm 0.01 100 GRA21 Ore grade Au

30 g – Fire Assay

AAS

FA-FU04 AA26 Au ppm 0.01 100 GRA22 Ore grade Au

50 g – Fire Assay

AAS

GEO-AR01 ME – ICP41 Ag ppm 0.2 100 OG46 35 element Aqua Regia

ICP-AES ICP-AES

GEO-AR01 ME – ICP41 Cu ppm 1 10000 OG46 35 element Aqua Regia

ICP-AES ICP-AES

GEO-AR01 ME – ICP41 Pb ppm 2 10000 OG46 35 element Aqua Regia

ICP-AES ICP-AES

GEO-AR01 ME – ICP41 Zn ppm 2 10000 OG46 35 element Aqua Regia

ICP-AES ICP-AES

QUALITY CONTROL PROCEDURES ALS standard operating procedures require the analysis of quality control samples (reference materials, duplicates and blanks) with all sample batches. As part of the assessment of every data set, results from the control samples are evaluated to ensure they meet set standards determined by the precision and accuracy requirements of the method.

In the event that any reference material or duplicate result falls outside the established control limits, an Error Report is automatically generated. This ensures the person evaluating the sample set for data release is made aware that a problem may exist with the data set and investigation can be initiated.

All data generated from quality control samples is automatically captured and retained in a separate database used for Quality Assessment. Control charts for in-house reference materials from frequently used analytical methods are regularly generated and evaluated by senior technical staff to ensure internal specifications for precision and accuracy are being met.

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Rev. 0 Page 30-4

INSPECTORATE LABORATORIES ANALYTICAL PROCEDURES ISP-330 (Gold determination in exploration samples): prepared sample is fused and receive an AAS finish. ISP-142 (Metal analysis by ICP-OES with aqua regia digestion in exploration samples): A prepared sample (0.15) g is cold digested with concentrated nitric acid for 5 to 10 minutes. After is digested with hydrochloric acid for 90 minutes at 90 ˚C. After cooling demineralized water is added, mixed and then analyzed by Inductively Coupled Plasma (ICP) method against matrix-matched standards. ISP-140 (Metal analysis by AAS with aqua regia digestion in exploration samples): A prepared sample (0.2 to 0.5) g is digested with concentrated nitric and hydrochloric acids at moderate temperature. After being reduced to 5mL the residue is digested with hydrochloric acid at 25% for Ag and hydrochloric acid 10% for Cu, Pb and Zn. After cooling demineralized water is added, mixed and then analyzed by atomic absorption. ISP-201 (Zinc determination by volumetrics): A prepared sample (0.25 to 0.5 ±0.0002) g is digested with 10mL of nitric acid, 5 mL of hydrochloric acid and 3 mL sulfuric acid. After the residue becomes a paste demineralized water is added and filtered. 10 mL of nitric acid and 4 mL of perchloric acid and 5mL of hydrochloric acid are sequentially added to the precipitated that is washed, reduced and filtered. The solucion is washed with hot water until PH riches 5.3 to 5.35. Sodium thiosulfate at 10% is added to 15 to 20 mL to the solution. Ammonium fluoride at 5% is added to 2.5 mL of the solution of. Zinc is measured and reported. ISP-202 (Lead determination by volumetrics): A prepared sample (0.25 to 0.5 ±0.0002) g is digested with 10mL of nitric acid, 5 mL of hydrochloric acid and 3 mL sulfuric acid. After the residue becomes a paste demineralized water is added and filtered. Sulfuric acid at 2% and water is mixed (3X) to the precipitated until the acid is removed. A Pb extractive solution is added to the precipitated and boiled in water. Orange xilenol and ascorbic acid is also added. Lead is measured and reported. ISP-203 (Copper determination by volumetrics): A prepared sample (0.1 to 0.25 ±0.0002) g is digested with 10mL of nitric acid, 5 mL of hydrochloric acid and 5 mL sulfuric acid. After the residue becomes a paste demineralized water is added and filtered. Ammonium Hydroxide, acetic acid ammonium fluorite is added. Copper is measured and reported.

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Rev. 0 Page 30-5

TABLE 30-3 ALS CHEMEX MINERALS ANALYTICAL PROCEDURES Salazar Resources Ltd. – Curipamba Project

Sample

Decomposition Method Code Element Units Lower Limit

Upper Limits

Overlimit Method

Instrument Finish

30-50g Fire Assay ISP-330 Au ppm 0.005 5 GRAV-ISP-330 AAS

Aqua Regia ISP-142 Ag ppm 0.2 200 AA-ISP-140 ICP-OES

ISP-140 Ag Ppm 200 300 GRAV-ISP-331 AAS

Aqua Regia ISP-142 Cu ppm 2 10,000 AA-ISP-140 ICP-OES

ISP-140 Cu % 1 10 VOL-ISP-203 AAS

Aqua Regia ISP-142 Pb ppm 5 10,000 AA-ISP-140

ISP-140 Pb % 1 10 VOL-ISP-202 AAS

Aqua Regia ISP-142 Zn ppm 5 10,000 AA-ISP-140

ISP-140 Zn % 1 10 VOL-ISP-201 AAS

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Rev. 0 Page 31-1

31 APPENDIX 2 GRADE CAPPING ANALYSIS

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Rev. 0 Page 31-2

FIGURE 31-1 GOLD ASSAY PERCENTILE ANALYSIS – ALL LENSES

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

8.17 8.74 9.23 9.98 11.27 12.81 15.62 18.90 23.45 30.71

Perc

ent C

onta

ined

Top 10 Percentile Grades (Au g/t)

El Domo Mineral Resource - Percentil Analysis

Cut to 20

Cut to 30

Cut to 40

Uncut

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Rev. 0 Page 31-3

FIGURE 31-2 GOLD ASSAY PROBABILITY PLOT – ALL LENSES

0.01 0.1 1 10 100

Gold Grade (g/t)

ASSAYS IN RESOURCE WIREFRAMESEl Domo Mineral Resource

Cumlative Frequency % Log Probability Plot

99.999

99.99599.99

99.9599.9099.80

99.50

99.00

98.00

95.00

90.00

80.00

70.00

60.00

50.00

40.00

30.00

20.0015.00

10.00

5.00

2.00

1.00

0.50

0.200.100.05

0.01

% ofvalues < g/t

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Rev. 0 Page 31-4

FIGURE 31-3 GOLD CUTTING CURVE – ALL LENSES

FIGURE 31-4 COPPER ASSAY PERCENTILE ANALYSIS – ALL LENSES

Cutting Le ve l 0 2 5 10 15 20 25 30 35 40 45 50 55Cut Gra d e 0.000 1.323 2.035 2.612 2.899 3.073 3.186 3.270 3.317 3.359 3.385 3.406 3.426%Cut -61.4% -40.6% -23.8% -15.4% -10.3% -7.0% -4.6% -3.2% -2.0% -1.2% -0.6% 0.0%

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

0 10 20 30 40 50

Aver

age

Cut

Gol

d G

rade

(g/t

Au)

Cutting Level (g/t Au)

El Domo Cutting Curve - Inside Resource Wireframes

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

6.82 7.55 8.29 8.72 8.93 10.16 11.41 12.14 12.87 15.66

Perc

ent C

onta

ined

Top 10 Percentile Grades (Cu %)


Cut to 17

Cut to 20

Cut to 25

Uncut

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Rev. 0 Page 31-5

FIGURE 31-5 COPPER ASSAY PROBABILITY PLOT – ALL LENSES

0.001 0.01 0.1 1 10 100

Cu grade (%)



99.999

99.99599.99

99.9599.9099.80

99.50

99.00

98.00

95.00

90.00

80.00

70.00

60.00

50.00

40.00

30.00

20.0015.00

10.00

5.00

2.00

1.00

0.50

0.200.100.05

0.01

% ofvalues < g/t

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Rev. 0 Page 31-6

FIGURE 31-6 COPPER CUTTING CURVE – ALL LENSES

FIGURE 31-7 SILVER ASSAY PERCENTILE ANALYSIS – ALL LENSES

Cutting Le ve l 0 2 4 6 8 10 12 14 16 18 20 22 24Cut Gra d e 0.000 1.152 1.674 1.982 2.189 2.323 2.413 2.458 2.483 2.497 2.504 2.505 2.505%Cut -54.0% -33.2% -20.9% -12.6% -7.3% -3.7% -1.9% -0.9% -0.3% 0.0% 0.0% 0.0%

0.00

0.50

1.00

1.50

2.00

2.50

3.00

0 2 4 6 8 10 12 14 16 18 20 22 24Aver

age

Cut

Cop

per G

rade

(% C

u)

Cutting Level (% Cu)


0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

158.70 172.18 188.75 216.60 249.23 290.22 361.52 422.24 522.36 715.52

Perc

ent C

onta

ined

Top 10 Percentile Grades (Ag g/t)


Cut to 300

Cut to 400

Cut to 500

Uncut

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Rev. 0 Page 31-7

FIGURE 31-8 SILVER ASSAY PROBABILITY PLOT – ALL LENSES

0.01 0.1 1 10 100 1000 10000

Ag grade (g/t)



99.999

99.99599.99

99.9599.9099.80

99.50

99.00

98.00

95.00

90.00

80.00

70.00

60.00

50.00

40.00

30.00

20.0015.00

10.00

5.00

2.00

1.00

0.50

0.200.100.05

0.01

% ofvalues < g/t

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Rev. 0 Page 31-8

FIGURE 31-9 SILVER CUTTING CURVE – ALL LENSES

FIGURE 31-10 LEAD ASSAY PERCENTILE ANALYSIS – ALL LENSES

Cutting Le ve l 0 100 200 300 400 500 600 700 800 900 1000 1100 1200Cut Gra d e 0.000 37.036 48.373 54.507 58.902 61.843 64.065 65.772 67.049 67.870 68.459 69.049 69.638%Cut -46.8% -30.5% -21.7% -15.4% -11.2% -8.0% -5.6% -3.7% -2.5% -1.7% -0.8% 0.0%

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

0 100 200 300 400 500 600 700 800 900 1000 1100 1200Aver

age

Cut

Silv

er G

rade

(g/t

Ag)

Cutting Level (g/t Ag)


0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

0.79 0.90 1.02 1.16 1.56 1.84 2.12 2.67 3.90 5.38

Perc

ent C

onta

ined

Top 10 Percentile Grades (Pb %)


Cut to 6

Cut to 8

Cut to 10

Uncut

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Rev. 0 Page 31-9

FIGURE 31-11 LEAD ASSAY PROBABILITY PLOT – ALL LENSES

0.0001 0.001 0.01 0.1 1 10 100

Pb grade (%)



99.999

99.99599.99

99.9599.9099.80

99.50

99.00

98.00

95.00

90.00

80.00

70.00

60.00

50.00

40.00

30.00

20.0015.00

10.00

5.00

2.00

1.00

0.50

0.200.100.05

0.01

% ofvalues < g/t

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Rev. 0 Page 31-10

FIGURE 31-12 LEAD CUTTING CURVE – ALL LENSES

FIGURE 31-13 ZINC ASSAY PERCENTILE ANALYSIS – ALL LENSES

Cutting Le ve l 0 2 4 6 8 10 12 14 16 18 20 22 24Cut Gra d e 0 0.274 0.335 0.361 0.377 0.385 0.393 0.400 0.404 0.406 0.406 0.406 0.406%Cut -32.4% -17.3% -11.0% -7.2% -5.1% -3.1% -1.4% -0.5% 0.0% 0.0% 0.0% 0.0%

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Aver

age

Cut

Lea

d G

rade

(% P

b)

Cutting Level (% Pb)


0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

9.68 10.85 12.61 14.00 15.91 17.10 22.57 26.37 32.25 39.75

Perc

ent C

onta

ined

Top 10 Percentile Grades (Zn %)


Cut to 20

Cut to 30

Cut to 40

Uncut

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Rev. 0 Page 31-11

FIGURE 31-14 ZINC ASSAY PROBABILITY PLOT – ALL LENSES

0.001 0.01 0.1 1 10 100

Zn grade (%)



99.999

99.99599.99

99.9599.9099.80

99.50

99.00

98.00

95.00

90.00

80.00

70.00

60.00

50.00

40.00

30.00

20.0015.00

10.00

5.00

2.00

1.00

0.50

0.200.100.05

0.01

% ofvalues < g/t

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Rev. 0 Page 31-12

FIGURE 31-15 ZINC CUTTING CURVE – ALL LENSES

Cutting Le ve l 0 2 5 10 15 20 25 30 35 40 45 50 55Cut Gra d e 0 1.053 1.727 2.371 2.773 3.030 3.236 3.383 3.483 3.550 3.588 3.606 3.612%Cut -70.9% -52.2% -34.4% -23.2% -16.1% -10.4% -6.3% -3.6% -1.7% -0.7% -0.2% 0.0%

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

0 5 10 15 20 25 30 35 40 45 50 55

Aver

age

Cut

Zin

c G

rade

(% Z

n)

Cutting Level (% Zn)


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