February 24, 2012
Amended on April 19, 2012
ROSCOE POSTLE ASSOCIATES INC.
BATERO GOLD CORPORATION
TECHNICAL REPORT ON THEBATERO-QUINCHIA PROJECT,DEPARTMENT OF RISARALDA,COLOMBIA
NI 43-101 Report
Qualified Persons:Paul Chamois, M.Sc.(Applied), P.Geo.Luke Evans, M.Sc., P.Eng.
Report Control Form Document Title Technical Report on the Batero-Quinchia Project, Department
of Risaralda, Colombia
Client Name & Address
Batero Gold Corp. 3703-1011 W. Cordova St., Vancouver, B.C. V6C 0B2
Document Reference
Project # 1621
Status & Issue No.
Final Version
Issue Date February 24, 2012, Amended April 19, 2012
Lead Author Paul Chamois
Luke Evans
(Signed) (Signed)
Peer Reviewer Deborah McCombe
Dave Ross
(Signed) (Signed)
Project Manager Approval Luke Evans
(Signed)
Project Director Approval Wayne Valliant
(Signed)
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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Batero Gold Corp. – Batero-Quinchia Project, Project # 1621
Technical Report NI 43-101 – Amended April 19, 2012
Rev. 0 Page i
TABLE OF CONTENTS PAGE
1 SUMMARY ................................................................................................................ 1-1 Executive Summary ................................................................................................ 1-1 Technical Summary ................................................................................................ 1-7
2 INTRODUCTION ....................................................................................................... 2-1
3 RELIANCE ON OTHER EXPERTS ........................................................................... 3-1
4 PROPERTY DESCRIPTION AND LOCATION .......................................................... 4-1 Royalties and Other Encumbrances ....................................................................... 4-4 Permitting ............................................................................................................... 4-5
5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ........................................................................................................ 5-1
6 HISTORY .................................................................................................................. 6-1 Prior Ownership ...................................................................................................... 6-1 Exploration History ................................................................................................. 6-1 Historical Metallurgical Testing ............................................................................... 6-5
7 GEOLOGICAL SETTING AND MINERALIZATION ................................................... 7-1 Regional Geology ................................................................................................... 7-1 Project Geology ...................................................................................................... 7-2 Mineralization ......................................................................................................... 7-9
8 DEPOSIT TYPES ...................................................................................................... 8-1
9 EXPLORATION ......................................................................................................... 9-1 Exploration Potential ............................................................................................... 9-8
10 DRILLING .............................................................................................................. 10-1
11 SAMPLE PREPARATION, ANALYSES AND SECURITY ..................................... 11-1
12 DATA VERIFICATION ........................................................................................... 12-1 Independent Assay of Drill Core ........................................................................... 12-1 Database Verification ........................................................................................... 12-2 Quality Assurance and Quality Control ................................................................. 12-4
13 MINERAL PROCESSING AND METALLURGICAL TESTING ............................... 13-1
14 MINERAL RESOURCE ESTIMATE ....................................................................... 14-1 Summary .............................................................................................................. 14-1 Database .............................................................................................................. 14-1 Geological Interpretation....................................................................................... 14-6 Assay Statistics .................................................................................................. 14-12 Capping of High Grade Assays ........................................................................... 14-14 Compositing ....................................................................................................... 14-15 Density ............................................................................................................... 14-18
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Batero Gold Corp. – Batero-Quinchia Project, Project # 1621
Technical Report NI 43-101 – Amended April 19, 2012
Rev. 0 Page ii
Copper and Gold Grade Trend Analysis ............................................................. 14-20 Variography ........................................................................................................ 14-23 Block Model ........................................................................................................ 14-26 Grade Interpolation ............................................................................................. 14-27 Cut-off Grade and Whittle Shell .......................................................................... 14-28 Block Model Validation ....................................................................................... 14-29 Sensitivity to Cut-off Grade ................................................................................. 14-34 Resource Classification ...................................................................................... 14-37 Resource Estimate ............................................................................................. 14-40 Redox Model ...................................................................................................... 14-42 Summary of Recommendations .......................................................................... 14-46
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
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 Batero Drilling Data .............................................................................................. 30-1
31 APPENDIX 2 ......................................................................................................... 31-1 Batero Significant Drilling Results ......................................................................... 31-1
32 APPENDIX 3 ......................................................................................................... 32-1 Certificate of Analysis ........................................................................................... 32-1
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Batero Gold Corp. – Batero-Quinchia Project, Project # 1621
Technical Report NI 43-101 – Amended April 19, 2012
Rev. 0 Page iii
LIST OF TABLES PAGE
Table 1-1 Mineral Resource Estimate - January 11, 2012 .......................................... 1-2 Table 1-2 Proposed Budgets ...................................................................................... 1-6 Table 4-1 Quinchia Property Description .................................................................... 4-1 Table 5-1 Climatic Data - Pereira/Matecana ............................................................... 5-2 Table 6-1 Anglogold Ashanti (KEDAHDA) Diamond Drilling ....................................... 6-3 Table 6-2 Anglogold Ashanti (KEDAHDA) Significant Results .................................... 6-4 Table 12-1 Independent Assays of Drill Core ........................................................... 12-2 Table 12-2 QA/QC Summary ................................................................................... 12-5 Table 12-3 Blank Summary Results ......................................................................... 12-5 Table 12-4 Summary Statistics for Gold Duplicates ................................................ 12-11 Table 12-5 Expected Values and Ranges of CRMs ................................................ 12-12 Table 12-6 Summary of the CRM Results For Gold ................................................ 12-12 Table 12-7 Summary of the CRM Results for Copper .............................................. 12-13 Table 13-1 Summary Cyanide Leach Test Results ................................................... 13-2 Table 13-2 Metallurgical Sample Location & description .......................................... 13-3 Table 13-3 Metallurgical Sample Assays .................................................................. 13-5 Table 14-1 Mineral Resource Estimate - January 11, 2012 ...................................... 14-1 Table 14-2 Gemcom Database Structure ................................................................. 14-2 Table 14-3 Drill Hole Database Records .................................................................. 14-3 Table 14-4 Assay Statistics by Simplified Geology ................................................... 14-6 Table 14-5 Resource Assay Statistics - Gold .......................................................... 14-12 Table 14-6 Resource Assay Statistics - Copper ..................................................... 14-12 Table 14-7 Capping Levels ..................................................................................... 14-15 Table 14-8 Statistics of Gold Composites ............................................................... 14-16 Table 14-9 Statistics of Copper Composites ........................................................... 14-16 Table 14-10 Density Statistics for Tests Without Paraffin ....................................... 14-19 Table 14-11 Density Statistics for Tests With Paraffin ............................................ 14-19 Table 14-12 Block Model Dimensions .................................................................... 14-26 Table 14-13 Block Model Tonnage Factors ............................................................ 14-27 Table 14-14 Block Model Field Descriptions ........................................................... 14-27 Table 14-15 Interpolation Parameter Summary ...................................................... 14-28 Table 14-16 Cut-off Grade and Whittle Assumptions .............................................. 14-29 Table 14-17 Assay, Composite, and Block Model Gold Statistics ........................... 14-32 Table 14-18 Mineralization Tonnage Grade Curve Data ......................................... 14-35 Table 14-19 Mineral Resource Estimate Details- January 25, 2012 ....................... 14-40 Table 14-20 Blocks Above 0.3 g/t Gold .................................................................. 14-41 Table 14-21 Blocks Above 0.5 g/t Gold .................................................................. 14-42 Table 14-22 Oxide and Sulphide Resource Estimate DEtails ................................. 14-45 Table 26-1 Proposed Budget - Phase I ..................................................................... 26-2 Table 26-2 Proposed Budget - Phase II .................................................................... 26-3
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Batero Gold Corp. – Batero-Quinchia Project, Project # 1621
Technical Report NI 43-101 – Amended April 19, 2012
Rev. 0 Page iv
LIST OF FIGURES PAGE
Figure 4-1 Location Map............................................................................................. 4-6 Figure 4-2 Property Map............................................................................................. 4-7 Figure 7-1 Regional Geology ...................................................................................... 7-7 Figure 7-2 Project Geology ......................................................................................... 7-8 Figure 7-3 Cross Section 585,300N ......................................................................... 7-12 Figure 7-4 Cross Section 586,650N ......................................................................... 7-13 Figure 8-1 Schematic Diagram through Typical Porphyry System .............................. 8-3 Figure 9-1 Results of Copper in Soil Samples ............................................................ 9-3 Figure 9-2 Results of Gold in Soil Samples ................................................................ 9-4 Figure 9-3 Magnetic Survey Results ........................................................................... 9-6 Figure 9-4 Location of Tunnels ................................................................................... 9-7 Figure 9-5 La Cumbre Target Showing Untested Anomaly to South of Current Drilling ... ................................................................................................................................... 9-10 Figure 9-6 Exploration Targets ................................................................................. 9-11 Figure 10-1 Drill Hole Locations ............................................................................... 10-3 Figure 11-1 Core Sample Protocol 2010/2011 .......................................................... 11-3 Figure 11-2 Sample Preparation and Analysis Protocols .......................................... 11-4 Figure 12-1 Blanks – Gold Results ........................................................................... 12-6 Figure 12-2 Blanks – Copper Results ....................................................................... 12-6 Figure 12-3 Field Duplicates Gold Scatter Plot ......................................................... 12-8 Figure 12-4 Field Duplicates Gold Q-Q Plot .............................................................. 12-8 Figure 12-5 Reject Duplicates Gold Scatter Plot ....................................................... 12-9 Figure 12-6 Reject Duplicates Gold Q-Q Plot ........................................................... 12-9 Figure 12-7 Pulp Duplicates Gold Scatter Plot ........................................................ 12-10 Figure 12-8 Pulp Duplicates Q-Q Plot ..................................................................... 12-10 Figure 12-9 Precision Curves for Gold Duplicates .................................................. 12-11 Figure 12-10 CRM CDN-CM-7 – Gold .................................................................... 12-14 Figure 12-11 CRM CDN-CM-7 – Copper ................................................................ 12-14 Figure 12-12 CRM CDN-CM-6 – Gold .................................................................... 12-15 Figure 12-13 CRM CDN-CM-6 – Copper ................................................................ 12-15 Figure 12-14 CRM CDN-CGS-24 – Gold ................................................................ 12-16 Figure 12-15 CRM CDN-CGS-24 – Copper ............................................................ 12-16 Figure 12-16 CRM CDN-CGS-23 – Gold ................................................................ 12-17 Figure 12-17 CRM CDN-CGS-23 – Copper ............................................................ 12-17 Figure 12-18 CRM CDN-CM 8 – Gold .................................................................... 12-18 Figure 12-19 CRM CDN-CM 8 – Copper ................................................................ 12-18 Figure 12-20 CRM CDN-CM 10 – Gold .................................................................. 12-19 Figure 12-21 CRM CDN-CM 10 – Copper .............................................................. 12-19 Figure 12-22 CRM CDN-CM 12 – Gold .................................................................. 12-20 Figure 12-23 CRM CDN-CM 12 – Copper .............................................................. 12-20 Figure 12-24 CRM CDN-ME 6 – Gold .................................................................... 12-21 Figure 12-25 CRM CDN-ME 6-Copper ................................................................... 12-21 Figure 12-26 CRM CDN-CGS-27 – Copper ............................................................ 12-22 Figure 12-27 CRM CDN-CM-11A – Copper............................................................ 12-22 Figure 12-28 External Check Assays - Gold ........................................................... 12-23 Figure 12-29 External Check Assays – Copper ...................................................... 12-24
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Batero Gold Corp. – Batero-Quinchia Project, Project # 1621
Technical Report NI 43-101 – Amended April 19, 2012
Rev. 0 Page v
Figure 13-1 Metallurgy Sample Locations ................................................................ 13-4 Figure 13-2 Overall Gold Extraction (Sulphide Samples) .......................................... 13-6 Figure 14-1 Drill Hole Plan ....................................................................................... 14-4 Figure 14-2 Drill Hole 3D View ................................................................................. 14-5 Figure 14-3 Cross Section 585275N Looking North .................................................. 14-8 Figure 14-4 Lithology Block Model – 1,575 m Bench ................................................ 14-9 Figure 14-5 Gold Wireframes ................................................................................. 14-10 Figure 14-6 Copper Wireframes ............................................................................. 14-11 Figure 14-7 Gold Resource Assay Histogram – All Areas ....................................... 14-13 Figure 14-8 Copper Resource Assay Histogram – All Areas .................................. 14-13 Figure 14-9 Gold and Copper Log Probability Plots ................................................ 14-14 Figure 14-10 Gold Composite Histogram – All Areas ............................................. 14-17 Figure 14-11 Copper Composite Histogram – All Areas ......................................... 14-17 Figure 14-12 Boxplots of Density Tests without Paraffin ......................................... 14-19 Figure 14-13 Boxplots of SG Tests with Paraffin for the Main Lithologies ............... 14-20 Figure 14-14 Planview Showing Gold Grade Shells ............................................... 14-21 Figure 14-15 Planview Showing Copper Grade Shells ........................................... 14-22 Figure 14-16 Downhole Semi-Variogram – All Gold Composites ............................ 14-23 Figure 14-17 Downhole Semi-Variogram – La Cumbre Copper Composites .......... 14-23 Figure 14-18 La Cumbre Down Dip Gold Semi-Variogram ..................................... 14-24 Figure 14-19 La Cumbre Along Strike Gold Semi-Variogram ................................. 14-24 Figure 14-20 Dos Quebradas Gold Semi-Variograms ............................................ 14-25 Figure 14-21 Gold Composites and Blocks on 1,525 m Bench ............................... 14-30 Figure 14-22 Gold Composites and Blocks on Section 5,375N............................... 14-31 Figure 14-23 Gold Composites and Blocks on Section 6,625N............................... 14-31 Figure 14-24 Swath Plot By Elevation for La Cumbre Area .................................... 14-33 Figure 14-25 Composites Versus Block Gold Grades ............................................. 14-34 Figure 14-26 Mineralization Tonnage-Grade Curves .............................................. 14-36 Figure 14-27 Block to Composite Distance Histograms – La Cumbre ..................... 14-37 Figure 14-28 Block to Composite Distance Histograms – Dos Quebradas ............. 14-38 Figure 14-29 Block to Composite Distance Histograms – El Centro ....................... 14-38 Figure 14-30 Resource Classification Block Model – 1,525 m Bench ..................... 14-39 Figure 14-31 3D View Looking Northwest – Blocks Above 0.3 g/t Gold .................. 14-41 Figure 14-32 3D View Looking Northwest – Blocks Above 0.5 g/t Gold .................. 14-42 Figure 14-33 Sulphur Grades – Section 5525N ...................................................... 14-44 Figure 14-34 Sulphur Grades – Section 5275N ...................................................... 14-44 Figure 23-1 Adjacent Properties Regionals .............................................................. 23-3 Figure 23-2 Adjacent Properties ............................................................................... 23-4
LIST OF APPENDIX FIGURES & TABLES PAGE
Table 30-1 Batero Drilling Summary ......................................................................... 30-2 Table 31-1 Batero Significant Drilling Results ........................................................... 31-2
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Batero Gold Corp. – Batero-Quinchia Project, Project # 1621
Technical Report NI 43-101 – Amended April 19, 2012
Rev. 0 Page 1-1
1 SUMMARY EXECUTIVE SUMMARY Roscoe Postle Associates Inc. (RPA) was retained by Brandon Rook, President and
Chief Executive Officer of Batero Gold Corp. (Batero), to prepare an independent
Technical Report on the Batero-Quinchia Project, Department of Risaralda, Colombia.
The purpose of this report is to document the technical information available on the
project and to support the initial Mineral Resource estimates for the La Cumbre, El
Centro, and Dos Quebradas Zones. This Technical Report conforms to National
Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101). RPA visited
the property from November 17 to 18, 2010.
On July 26, 2010, Batero announced that it had acquired all of the rights to the 1,407.3
ha Quinchia property in consideration for which it agreed to issue an aggregate of 6.65
million common shares, make cash payments totalling $2.2 million (of which $450,000
was paid on the closing date), and incur expenditures on the Quinchia property totalling
$5 million over four years. Batero will issue an additional two million common shares if it
prepares a NI 43-101 compliant report at any time that establishes the existence of at
least five million ounces of gold categorized as a Measured Resource, as defined in NI
43-101, at a cut-off grade of 0.7 g/t of gold or gold equivalent on the Quinchia property.
Batero also agreed to issue 525,000 common shares to an arm’s length party as a
finder’s fee.
Currently, the major asset associated with the project is a significant land package
located within a highly prospective geological environment and containing very attractive
exploration targets at the drill definition stage.
RPA estimated Mineral Resources for the Quinchia deposit using drill hole data available
as of January 11, 2012 (Table 1-1). The Mineral Resource estimate is based on a
potential open pit mining scenario. Mineral Resources are reported at a 0.16 g/t Au cut-
off grade within a $1,500/oz Au Whittle pit shell. The gold cut-off grade and Whittle shell
make no consideration for silver and copper.
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Batero Gold Corp. – Batero-Quinchia Project, Project # 1621
Technical Report NI 43-101 – Amended April 19, 2012
Rev. 0 Page 1-2
TABLE 1-1 MINERAL RESOURCE ESTIMATE - JANUARY 11, 2012 Batero Gold Corp. – Batero-Quinchia Project
Resource Tonnes Gold Silver Copper Contained Gold
Classification (Mt) (g/t) (g/t) (%) (000 oz) Total Indicated 248.5 0.44 1.54 0.08 3,546
Total Inferred 242.4 0.33 1.80 0.06 2,588
Notes:
1. CIM definitions were followed for Mineral Resources. 2. Mineral Resources are estimated using a gold price of US$1,500 per ounce. 3. A gold recovery factor of 80% was used based on preliminary metallurgical test work. 4. Resources are constrained by a Whittle shell and reported at a 0.16 g/t Au cut-off grade. 5. Totals may not represent the sum of the parts due to rounding.
RPA is not aware of any known environmental, permitting, legal, title, taxation, socio-
economic, marketing, political, or other relevant factors that could materially affect the
current resource estimate.
INTERPRETATION AND CONCLUSIONS The La Cumbre, El Centro, and Dos Quebradas Zones on the Batero-Quinchia property
represent significant new porphyry-related mineralization hosted by three Miocene
intrusive centres emplaced in coeval intermediate to felsic volcanics of the Miocene
Combia Formation and Cretaceous basalts of the Barroso Formation. The property is
located in the Department of Risaralda, Colombia.
The three deposits are copper-poor porphyry gold systems in which intermediate argillic
alteration locally overprints an early potassic assemblage and its associated quartz
veinlet stockwork. Gold occurs in altered dioritic intrusions and in the diorite-basalt
contact zones. The intrusions that host mineralization consist of several phases of
diorite and later andesitic dike phases exhibiting characteristic alteration zoning, possibly
as a result of telescoped porphyry and epithermal systems and progressive leaching of
gold by overprinting argillic alteration.
Porphyry-related mineralization was discovered by a subsidiary of AngloGold Ashanti
(AGA) in 2006 in the La Cumbre and Dos Quebradas areas. Since acquiring the
property, work by Batero has focussed on the La Cumbre and Dos Quebradas Zones
and has consisted of geological mapping and sampling, soil sampling, geophysical
surveys including magnetics, induced polarization and radiometrics, and diamond
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Batero Gold Corp. – Batero-Quinchia Project, Project # 1621
Technical Report NI 43-101 – Amended April 19, 2012
Rev. 0 Page 1-3
drilling. This work has at least partially delineated the three mineralized centres and
identified epithermal-style mineralization in proximity of the La Cumbre deposit. Eight
other exploration targets have been identified elsewhere on the property.
In early 2011, Batero initiated preliminary metallurgical testing on six drill core composite
samples to determine their response to gravity concentration, flotation, and cyanidation.
The response to cyanidation via bottle roll tests was clearly superior and yielded gold
recoveries ranging from 66% to 94%. A second phase of metallurgical testing was
completed on three of the samples representing sulphide mineralization from the
previous test work. Three batch cleaner tests were carried out as well as cyanide bottle
roll tests on the rougher and cleaner tails. A 5% to 10% increase in gold recovery using
flotation and cyanidation of the rougher and cleaner tails was achieved on a nominal 100
µm grind and a 4% increase in gold recovery was achieved on a nominal grind of 70 µm.
Batero has developed and implemented quality assurance/quality control (QA/QC)
protocols that meet current industry best practices. Batero’s protocol during the
2010/2011 drilling program included the insertion of blanks, multiple standards, and core
duplicates into the sample stream. Batero also submitted a suite of pulp duplicates to an
alternate laboratory.
The Mineral Resource estimate as presented in Table 1-1 is the initial resource estimate
for the Batero-Quinchia property. The estimation procedures will become more
sophisticated as the overall knowledge of the geological and structural controls evolves.
The gold, copper, and silver assays were composited into 10 m lengths and interpolated
into 10 m by 10 m by 10 m blocks using inverse distance squared weighting in a single
pass with a minimum of two composites and a maximum of five composites.
The search orientations, anisotropies, and radii for gold and silver at La Cumbre and Dos
Quebradas were developed from the variography results, which show well-defined
ranges up to approximately 400 m. An isotropic search with 300 m radii was applied to
areas with ambiguous variography results to interpolate the gold and silver at El Centro
and the copper at all three zones. Blocks at La Cumbre and Dos Quebradas within 50 m
of a composite were classified as Indicated and blocks within 50 m to 100 m of a
composite were classified as Inferred. All of the blocks within 100 m of a composite at
El Centro were classified as Inferred.
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Batero Gold Corp. – Batero-Quinchia Project, Project # 1621
Technical Report NI 43-101 – Amended April 19, 2012
Rev. 0 Page 1-4
The Batero-Quinchia property hosts porphyry gold-copper deposits with Indicated
Mineral Resources totalling 248.5 Mt grading 0.44 g/t Au, 1.54 g/t Ag, and 0.08% Cu and
Inferred Mineral Resources totalling 242.4 Mt grading 0.33 g/t Au, 1.80 g/t Ag, and
0.06% Cu. This equates to in-situ metal quantities of 3.55 Moz of gold in the Indicated
category and 2.59 Moz of gold in the Inferred category. Mineral Resources are reported
at a 0.16 g/t Au cut-off within a $1,500/oz Au Whittle pit shell. The gold cut-off grade and
Whittle shell make no consideration for silver or copper.
RECOMMENDATIONS The Batero-Quinchia property hosts significant gold-copper porphyry-style
mineralization, which merits considerably more exploration, and a substantial program is
recommended. Phase I proposed work includes:
• advancing the La Cumbre, Dos Quebradas, and El Centro mineralized zones,
and
• further evaluating the potential of the remainder of the property.
Advancing the La Cumbre, Dos Quebradas, and El Centro resource areas would consist
of:
• additional delineation and in-fill drilling,
• initial geotechnical drilling,
• additional metallurgical testing, particularly on the oxide and transition mineralization,
• environmental baseline monitoring,
• initial acid base accounting (ABA) and potential acid generating (PAG)
studies, and
• a Preliminary Economic Assessment including a resource estimation update.
A program of 10,000 m of drilling is recommended to delineate the limits of the known
mineralization and better assess grade distribution. An additional 5,000 m of drilling is
recommended to test areas of what could be walls of conceptual open pits for
geotechnical purposes. This drilling should be completed prior to initiating the
Preliminary Economic Assessment.
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Batero Gold Corp. – Batero-Quinchia Project, Project # 1621
Technical Report NI 43-101 – Amended April 19, 2012
Rev. 0 Page 1-5
The next stage of metallurgical testing should investigate means for improving
cyanidation recovery including pre-aeration, aeration under leach, lead nitrate addition,
and varying cyanide concentration and grind conditions. A variability test program
should be undertaken to better understand the relationship between gold and sulphur
grades with respect to gold recovery. Additional testing also should include a gold
deportment study, heap leach test work on oxide material, and an economic capital cost
analysis for two grind scenarios.
Environmental studies should include test work to determine the potential for acid
generation from both mineralized and waste material.
Recommendations with respect to further resource estimation work include building
separate structural, alteration, and redox block models as well as investigating whether a
hardness model might be required in the future. Saprolite ore and waste tonnage factors
should be better defined. A twinned hole study using triple tube core barrels or other
equipment to evaluate the reliability of the saprolite samples is warranted. Gold and
copper trend analysis, variography work, and classification criteria should be updated
when new data become available. Batero should also investigate if modelling additional
lithologies and different breccia types separately is warranted.
Follow-up drilling to better assess epithermal-style mineralization in the vicinity of the La
Cumbre deposit is recommended as is first pass drilling of exploration targets identified
elsewhere on the property.
The proposed work is estimated to take from eight to twelve months to complete and
should be initiated as soon as is practical.
Contingent upon Phase I program results, a Phase II program consisting primarily of
definition drilling, continued exploration drilling, and a Pre-feasibility Study is
recommended. Details of the recommended Phase I and Phase II programs can be
found in Table 1-2.
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Batero Gold Corp. – Batero-Quinchia Project, Project # 1621
Technical Report NI 43-101 – Amended April 19, 2012
Rev. 0 Page 1-6
TABLE 1-2 PROPOSED BUDGETS Batero Gold Corp. - Batero-Quinchia Project
Item C$
PHASE I Staff Cost 1,800,000 Field and Camp Workers 707,000 Contractors/Consultants 1,200,000 General Expenses 1,360,000 Drilling Infill (10,000 m @ $200/m) 2,000,000 Geotechnical (5,000 m @ $350/m) 1,750,000 Exploration (5,000 m @ $250/m) 1,250,000 Assays/Analyses 900,000 Accommodations/Camp Costs 100,000 Transportation 200,000 Infrastructure and Maintenance 250,000 Community Relations 650,000 Environmental Baseline Sampling 200,000 Permitting/Reclamation 50,000 Preliminary Economic Assessment 250,000 Metallurgical Testing 200,000 Technical Studies 350,000 Sub-Total 13,217,000 Contingency (10%) 1,321,700 PHASE I TOTAL 14,538,700
PHASE II Staff Cost 1,890,000 Field and Camp Workers 742,000 Contractors/Consultants 1,260,000 General Expenses 1,428,000 Drilling Infill (10,000 m @ $200/m) 2,000,000 Exploration (10,000 m @ $250/m) 2,500,000 Assays/Analyses 900,000 Infrastructure and Maintenance 75,000 Accommodations/Camp Costs 100,000 Transportation 200,000 Community Relations 750,000 Environmental Baseline Sampling 400,000 Permitting/Reclamation 50,000 Pre-Feasibility Study 1,250,000 Technical Studies 200,000 Sub-Total 13,745,000 Contingency (10%) 1,374,500 PHASE II TOTAL 15,119,500
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Batero Gold Corp. – Batero-Quinchia Project, Project # 1621
Technical Report NI 43-101 – Amended April 19, 2012
Rev. 0 Page 1-7
TECHNICAL SUMMARY PROPERTY DESCRIPTION AND LOCATION The Batero-Quinchia Project comprises three concession contracts in a contiguous block
totalling 1,407.3 ha, located within the Municipality of Quinchia, Department of Risaralda,
Colombia. The project is located on the Instituto Geográfica Augustín Codazzi (IGAC)
Planchas 186-IV-6 and 205-II-A topographic maps (1:25,000 scale), roughly within a
rectangular area extending for approximately 6.3 km in an east-west direction and 5.4
km in a north-south direction. The Universal Transverse Mercator (UTM) co-ordinates for
the approximate centre of this area are 422,500mE, 584,500mN (WGS-84, Zone 18N).
LAND TENURE On July 26, 2010, Batero announced that it had acquired all of the issued and
outstanding shares of Bahia Bonita Properties SA (Bahia). Bahia is a Panamanian
company incorporated to hold all of the issued and outstanding capital in Sociedad
Minera Quinchia S.A.S, (Minera Quinchia), a Colombian company which holds all of the
rights in the Quinchia property. As consideration for all of the outstanding shares of
Bahia, Batero issued an aggregate of 6.65 million common shares. In addition, Batero
agreed to make cash payments totalling $2.2 million (of which $450,000 was paid on the
closing date) and incur expenditures on the Quinchia property totalling $5 million over
four years. Batero also agreed to issue an additional two million common shares if it
prepares a NI 43-101 compliant report at any time that establishes the existence of at
least five million ounces of gold categorized as Measured Resource, as defined in NI 43-
101, at a cut-off grade of 0.7 g/t of gold or gold equivalent on the Quinchia property.
Batero agreed to issue 525,000 common shares to an arm’s length party as a finder’s
fee.
In accordance with Colombian law, the holder of the mining licences has a right to
access the parcel of land covered by such mining licences and may perform exploration
and exploitation work thereon, subject to indemnification for damages to the owners of
such parcel of land that may arise from such access and the activities carried on by the
holder of the mining licences.
All of the licences are currently in good standing. None of the licences have been
surveyed and RPA is not aware of any known environmental liabilities associated with
the property.
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SITE INFRASTRUCTURE The Batero-Quinchia Property benefits from secondary road access. Any mining
development on the project would have access to the national electrical grid. Three 230
kV high tension power lines run along the Cauca River Valley. A 132 kV sub-station at
Marmato supplies power to the surrounding area. Abundant water is available locally for
process purposes.
HISTORY The licences that comprise the Quinchia Property were initially acquired by Juan David
Uribe Hurtabo and Silvia Stella Rios Martinez in 1998. The property was optioned to
AGA in 2005. In November 2007, Caribbean Copper and Gold Corporation (Caribbean)
entered into an agreement with AGA whereby it could earn a 100% interest in the
property. Caribbean assumed AGA’s responsibilities with respect to the underlying
agreement. In 2009, Caribbean and AGA terminated the option agreement and the
property reverted to the vendors. In 2010, Batero acquired the Quinchia property
through its acquisition of all the issued and outstanding shares of Bahia, as described
under Land Tenure.
Artisanal mining has taken place in the Batero-Quinchia Project area from Pre-
Colombian to modern times. Artisanal gold production in the area was greatest during
the 1950s. Interest was renewed in the area in the late 1970s and culminated in the
1980s in the Miraflores area with the “Associacion de Mineros de Miraflores”, a local
artisanal mining cooperative.
During the 1990s, the Quinchia area drew the attention of various Canadian junior
companies, some of which acquired ground in the general area. In 1997, a subsidiary of
TVX Gold Inc., TVX Mineria de Colombia, completed a comprehensive review of the
Quinchia property but did not follow up with ground work.
In 2000, INGEOMINAS undertook a series of technical studies in the area including
geological mapping, geochemical and geophysical surveying, and prognostic (non–NI
43-101 compliant) resource estimations.
In May 2005, a subsidiary of AGA, Sociedad Kedahda S.A. (Kedahda), completed
reconnaissance sampling in selected areas within the current property. During 2006,
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Kedahda completed geological mapping, soil sampling, channel sampling, and a 15 hole
drilling program totalling 4,090.7 m on the Dos Quebradas, La Cumbre, and El Centro
targets. El Centro was previously known as Mandeval. In April 2008, Kedahda
completed a combined magnetometer and radiometric helicopter-borne survey over a
large area including the current Quinchia property.
GEOLOGY The Quinchia property is located along the eastern margin of Colombia’s physiographic
Western Cordillera. The region is underlain by a highly complex basement known as the
Romeral Terrane, which may be characterized as a tectonic mélange. The basement
took form when Middle to Upper Mesozoic-aged volcanic and sedimentary oceanic rocks
collided with, and were accreted to, the northern Andean paleo-continental margin,
beginning in the Early Cretaceous. The resulting suture is known as the Romeral fault
system and the mélange can be traced for over 1,000 km along the northern Andes.
Following accretion, the Romeral Terrane and mélange were conformably overlain in the
Late Oligocene to Early Miocene by autochthonous siliciclastic sedimentary sequences
of the Amaga Formation, including basal conglomerates, quartz sandstones, siltstones,
shales, and coal. In the Middle to Late Miocene, both the Romeral mélange and the
Amaga Formation were overlain by mafic to intermediate volcanic flows and pyroclastics
of the Combia Formation, associated with at least one Middle to Late Miocene volcanic
arc emplaced into the Romeral Terrane basement during this time period. Also
associated with late arc formation was the syntectonic emplacement of a series of
intrusives, including polyphase hypabyssal stocks, dikes, and sills of dioritic,
granodioritic, and monzonitic composition.
Following the accretionary events, the region was compressionally deformed in the Early
to Middle Miocene and again in the Middle to Late Miocene, in both cases by other
tectonic accretionary events taking place to the west along the active Pacific margin. The
structural architecture of the Romeral fault and mélange system is essentially that of a
+10 km wide series of north-south striking, vertically dipping dextral transcurrent faults.
Virtually all lithologic contacts within the Romeral basement are structural, characterized
by abundant shearing, mylonitization and the formation of clay-rich fault gouge.
Structural reactivation during the Miocene resulted in orthogonal compression
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accompanied by mostly west-directed (back) thrusting and high-angle reverse fault
development in the basement rocks.
The Quinchia property and surrounding area is underlain by four principal rock units.
These include; 1) a basement complex consisting of mafic and ultramafic oceanic
volcanic rocks and granitoid intrusive rocks belonging to the Romeral Terrane, 2)
stratified clastic sedimentary rocks of the Amaga Formation, 3) basalt-andesite through
felsic volcanic and pyroclastic rocks of the Combia Formation, and, 4) dioritic to
monzonitic hypabyssal porphyritic intrusive rocks.
At the regional scale, the most prominent structural control in the Quinchia district is the
generally north-south striking, sub-vertical basement architecture of the Romeral fault
system, as reflected in the digital elevation model (DEM), observed structural lineaments
and in the north-south trend of the general Middle Cauca porphyry belt. Structural
reactivation during various post Romeral events is also recorded, and principal and
secondary faults in the Batero-Quinchia Property strike west-northwest to east-southeast
and northeast to southwest and include the Amarilla structural corridor.
The Dos Quebradas, El Centro, and La Cumbre porphyry gold deposits are associated
with three Miocene intrusive centres in a north-south trend that have a strike extension of
approximately 3 km and at elevations between 1,600 MASL and 1,050 MASL. These
intrusive centres are composed of dikes and stocks separated in three groups as i) early
intra-mineral, ii) late intra-mineral, and iii) post mineral dioritic phases emplaced in
intermediate to felsic volcanic rocks of the Miocene Combia Formation and in
Cretaceous basalts.
The three deposits are copper-poor porphyry gold systems in which intermediate argillic
alteration locally extensively overprints an early potassic assemblage and its associated
quartz veinlet stockwork. Gold in these deposits occurs in altered dioritic intrusions and
in the diorite-basalt contact zones. The highest gold and/or copper grades occur in the
early diorite phases characterized by potassic (mainly biotite with subordinate K-
feldspar) and potassic-calcic alteration that is characterized by addition of traces of
actinolite and garnet to the potassic assemblage. Significant amounts of quartz ±
sulphide veinlets and greater than 3% hydrothermal magnetite are common in these
early phases.
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The intrusions that host mineralization consist of several phases of diorite and later
andesitic dike phases exhibiting characteristic alteration zoning, possibly as a result of
telescoped porphyry and epithermal systems and progressive leaching of gold by
overprinting argillic alteration.
EXPLORATION POTENTIAL RPA is of the opinion that there is very good exploration potential on the property both in
the immediate vicinity of the current resource and elsewhere on the property.
RPA evaluated the exploration potential in the vicinity of the current resource by
examining the gold mineralization extents and grades in the areas that surround the
resource estimate. This information has been used to express the exploration potential
in the immediate vicinity of the resource estimate as an approximate range of tonnages
and grades. RPA cautions that the exploration potential tonnage and grade estimate is
conceptual in nature, that there is insufficient exploration to define mineral resources in
these areas, and that further exploration may not define resources in these areas. It is
RPA’s opinion that the exploration potential on the property in the immediate vicinity of
the current resources is in the order of 100 Mt to 400 Mt of mineralization averaging 0.25
g/t Au to 0.45 g/t Au.
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Technical Report NI 43-101 – Amended April 19, 2012
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2 INTRODUCTION Roscoe Postle Associates Inc. (RPA) was retained by Brandon Rook, President and
Chief Executive Officer of Batero Gold Corp. (Batero), to prepare an independent
Technical Report on the Batero-Quinchia Project, Department of Risaralda, Colombia.
The purpose of this report is to document the technical information available on the
project and to support the initial Mineral Resource estimates for the La Cumbre, El
Centro, and Dos Quebradas Zones. This Technical Report conforms to National
Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101). RPA visited
the property from November 17 to 18, 2010.
Batero is a Canadian exploration company primarily engaged in the acquisition,
evaluation, exploration, and development of mineral properties with a view to commercial
production. The common shares of Batero trade on the TSX Venture Exchange and the
company is a reporting issuer in British Columbia, Alberta, and Saskatchewan.
Effective July 19, 2010, Batero changed its name from Angus Resources Inc.
Currently, the major asset associated with the project is a significant land package
located within a highly prospective geological environment which hosts three porphyry-
style gold-copper mineralized zones that are currently being investigated by diamond
drilling.
SOURCES OF INFORMATION A site visit was carried out by Paul Chamois, M.Sc. (A), P. Geo., Senior Consulting
Geologist with RPA, from November 17 to 18, 2010. The purpose of the visit was to
confirm the local geological setting, review logging and sampling methods, examine drill
core, take check samples, and identify any factors that might affect the project.
During the field visit, Mr. Chamois reviewed the logging and sampling methods,
examined drill core from holes QAPDDH01, QAPDDH02, and QAPDDH03, and visited
two active drill sites and an area currently being trenched. Samples for data verification
were collected from hole QAPDDH01.
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Discussions were held with personnel from Batero and Sociedad Minera Quinchia S.A.S.
(Minera Quinchia), including:
• Darren Anderson, Consultant, Batero Gold Corp. • Cesar Carvajal, Project Manager, Minera Quinchia • Milton Obando, Project Geologist, Minera Quinchia • Vivianne Cristina Pinzón, Geologist, Minera Quinchia • Andrés Sierra, Geologist, Minera Quinchia • Geronimo Valencía, Geologist, Minera Quinchia • Laura Ceballos, Geologist, Minera Quinchia • Freddy Ladino, Geologist, Minera Quinchia • Angelica Castaño, Geologist, Minera Quinchia
The report was prepared by Paul Chamois, P. Geo., and Luke Evans, M.Sc., P. Eng.,
Principal Geologist with RPA. Mr. Evans prepared Section 14 Mineral Resource
Estimate and also contributed to Sections 1, 25, and 26 of this report. Mr. Chamois
prepared all other sections of the report. Messrs. Chamois and Evans are the
independent Qualified Persons (QPs) for this report.
Significant assistance in the preparation of the report was provided by the staff of
Batero. The report benefits from their collective knowledge of the Batero-Quinchia
Project. Dr. Darryl Lindsay, P. Geo., Batero’s Chief Operating Officer, provided the draft
of the Exploration section, additional metallurgical information, and insight into the next
exploration and development steps for the project. Mr. Kieran Downes, Batero’s
independent qualified professional, provided exploration summaries and an external
review of this report.
The documentation reviewed, and other sources of information, are listed at the end of
this report in 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 µm micrometre kWh kilowatt-hour A ampere L litre a annum L/s litres per second bbl barrels m metre Btu British thermal units M mega (million) C$ Canadian dollars m2 square metre cal calorie m3 cubic metre cfm cubic feet per minute min minute cm centimetre MASL metres above sea level cm2 square centimetre mm millimetre d day mph miles per hour dia. diameter MVA megavolt-amperes dmt dry metric tonne MW megawatt dwt dead-weight ton MWh megawatt-hour ft foot m3/h cubic metres per hour ft/s foot per second opt, oz/st ounce per short ton ft2 square foot oz Troy ounce (31.1035g) ft3 cubic foot ppm part per million g gram psia pound per square inch absolute G giga (billion) psig pound per square inch gauge Gal Imperial gallon RL relative elevation g/L gram per litre s second g/t gram per tonne st short ton gpm Imperial gallons per minute stpa short ton per year gr/ft3 grain per cubic foot stpd short ton per day gr/m3 grain per cubic metre t metric tonne hr hour tpa metric tonne per year ha hectare tpd metric tonne per day hp horsepower US$ United States dollar in inch USg United States gallon in2 square inch USgpm US gallon per minute J joule V volt k kilo (thousand) W watt kcal kilocalorie wmt wet metric tonne kg kilogram yd3 cubic yard km kilometre yr year km/h kilometre per hour
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Technical Report NI 43-101 – Amended April 19, 2012
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3 RELIANCE ON OTHER EXPERTS This report has been prepared by RPA for Batero. 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 Batero and other third party
sources.
For the purpose of this report, RPA has relied on ownership information provided by
Batero and Holguín Neira & Pombo, legal counsel to Batero’s predecessor company,
Angus Resources Inc., in Colombia regarding title to the Quinchia Project. Holguín Neira
& Pombo provided a legal review and opinion dated December 3, 2009. This
information was relied upon in Section 1 and Section 4 of this report.
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 LAND TENURE The Batero-Quinchia Project consists of three contiguous exploration licences located
within the Municipality of Quinchia, Department of Risaralda, Colombia (Figures 4-1 and
4-2). Collectively, these titles cover approximately 1,407.3 ha. The project is located on
the Instituto Geográfica Augustin Codazzi (IGAC) Plancha 186-IV-6 and 205-II-A
topographic maps (1:25,000 scale). Table 4-1 lists the subject mining titles and the
relevant tenure information. The subject mining titles were map-staked and therefore no
boundary markers exist. As of the effective date of this report, none of the licences have
been surveyed. The subject mining titles are held under the name of Sociedad Minera
Quinchia S.A.S.
The three parcels of land are located within a rectangular area extending for
approximately 6.3 km in an east-west direction and 5.4 km in a north-south direction.
The Universal Transverse Mercator (UTM) co-ordinates for the approximate centre of
this area are 422,500mE, 584,500mN (WGS-84, Zone 18N).
In accordance with Colombian law, the holder of the mining licences has a right to
access the parcel of land covered by such mining licences and may perform exploration
and exploitation work thereon, subject to indemnification for damages to the owners of
such parcel of land that may arise from such access, and the activities carried on by the
holder of the mining licences.
TABLE 4-1 QUINCHIA PROPERTY DESCRIPTION Batero Gold Corp. – Batero-Quinchia Project
Original Minera Quinchia
Contract Contract Registration Registration Area Number Type Date Date (ha) 18567 Exploration Contract 15/04/1998 18/05/2009 859.08 22159 Exploration Contract 26/07/2005 25/06/2009 250.00 22270 30 Year Concession Contract 10/07/2006 18/05/2009 298.35
RPA understands that Batero has received notice from the Agencia Nacional de Mineria,
previously known as INGEOMINAS, that concessions 18567 and 22159 have received
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approval for conversion to Concession Contracts allowing up to 48 years of exploitation.
Although the approvals have been received, the registration of the concessions as
Concession Contracts is incomplete as of the effective date of this report.
AGREEMENT On July 26, 2010, Batero announced that it had acquired all of the issued and
outstanding shares of Bahia Bonita Properties SA (Bahia). Bahia is a Panamanian
company incorporated to hold all of the issued and outstanding capital in Sociedad
Minera Quinchia S.A.S. (Minera Quinchia), a Colombian company which holds all the
rights in the Quinchia property. As consideration for all of the outstanding shares of
Bahia, Batero issued an aggregate of 6.65 million common shares. In addition, Batero
agreed to make cash payments totalling $2.2 million (of which $450,000 was paid on the
closing date) and incur expenditures on the Quinchia property totalling $5 million over
four years. Batero also agreed to issue an additional two million common shares if it
prepares a NI 43-101 compliant report at any time that establishes the existence of at
least five million ounces of gold categorized as Measured Resource, as defined in NI 43-
101, at a cut-off grade of 0.7 g/t of gold or gold equivalent on the Quinchia property.
Batero agreed to issue 525,000 common shares to an arm’s length party as a finder’s
fee.
On September 10, 2010, Batero announced an amendment to the terms of the
acquisition agreement for the Quinchia property whereby all cash payments and
expenditures over four years were reduced to the payment of $1.68 million in Batero
units priced at $1.50 each to complete the acquisition. Each unit comprised one share
and one half warrant, with each full warrant being exercisable for two years at a price of
$2.25. As a result, Batero holds a 100% interest in the Quinchia Project, subject to the
issuance of two million future contingent shares as set out above.
MINERAL LICENCES Mineral rights in Colombia are reserved to the federal government and governed by the
Colombian Mining Code. The Colombian Mining Code has been changed and amended
on several occasions. The oldest version relevant to the Batero-Quinchia Project is
Decree 2685 of 1988 (the Previous Mining Code), which has been replaced and
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superseded in its entirety by Law 685 of 2001, as amended by Law 1382 of 2010. The
mining law is administered by the Ministry of Mines and Energy which has relegated the
administrative duties concerning concession issues to Agencia Nacional de Mineria
(“ANM”; ministerial decree # 4134, November 03, 2011) and the institution formally
known as INGEOMINAS will change name to Servicio Geologico Colombiano (“SGC”;
ministerial decree 4131, November 03, 2011) and be responsible for basic and applied
geological investigations.
In Colombia, mineral concession agreements consist of three phases, namely the
exploration, construction and exploitation phases, and are governed by Law 685 of 2001
as modified by Law 1382 of 2010. Under the Modified Mining Code, the exploration
phase is for a three-year period, which can be extended for up to four additional two-
year periods for a maximum of eleven years. During the exploration phase, annual
surface payments, Cánon Superficiario (Cánon), are payable to the Colombian
government on the basis of one minimum daily salary per hectare. The current cánon
rate is COP 17,166 per hectare (approximately US$8.58/ha). The surface payment is
calculated as one minimum daily wage per contracted hectare per year for the first five
years of the exploration phase. During years six and seven of the exploration phase, the
payment increases to 1.25 minimum daily wages per contracted hectare per year, and in
years eight to eleven it increases to 1.5 minimum daily wages per contracted hectare per
year. Upon completion of the exploration phase of a concession, the construction phase
is for a period of three years, and may be extended for a period of one year, after which
it enters its exploitation phase, in which cánon fees are no longer payable but are
replaced by a production royalty payable to the Colombian government.
Licence 18567 is an Exploration Licence which was first issued under Decree 2655 of
1988. Licence 18567 was granted to TVX Minera Ltda in 1994 and subsequently
assigned to Juan Davis Uribe Hurtado (Hurtado) in 1998. On January 26, 2000, a
request was filed for the term of the licence to be suspended due to force majeure. The
suspension was approved on April 13, 2000 and the licence was renewed in 2004. On
May 18, 2009, INGEOMINAS authorized the assignment of 100% of the rights and
obligations in Licence 18567 in favour of Minera Quinchia. In November 2011, the
INGEOMINAS office in Ibaque in its official minutes assigned the concession the status
of Concession Contract to Licence 18567 for a 28 year term. On January 10, 2012,
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Batero requested that the Concession Contract be formally documented in the
Colombian Mineral Registry.
Licence 22159 is an Exploration Licence which was first applied for in 1998 but was
issued under Decree 2655 of 1988 on July 26, 2005. In 2002, the Embera – Chami
native community located within the area of Licence 22159 was given an opportunity to
exercise its preferential right to the area by INGEOMINAS’ predecessor agency, the
Empresa Nacional Minera Ltda. This right was not exercised and the licence was
granted to Silvia Estela Rios Martinez (Martinez) and Hurtado in 2005. On June 25,
2009, INGEOMINAS authorized the assignment of 100% of the rights and obligations in
Licence 22159 in favour of Minera Quinchia. In November 2011, the INGEOMINAS
office in Ibague in its official minutes assigned the concession the status of Concession
Contract to Licence 22159 for a 28 year term. On January 10, 2012, Batero requested
that the Concession Contract be formally documented in the Colombian Mineral
Registry.
Licence 22270 is a Concession Contract issued under Mining Law 685 of 2001. It was
first applied for by Martinez and Hurtado on July 9, 1998. The concession contract was
executed on October 24, 2005. It was registered in the National Mining Registry on July
10, 2006. On May 18, 2009, INGEOMINAS authorized the assignment of 100% of the
rights and obligations in Licence 22270 in favour of Minera Quinchia. The term of the
contract is for 30 years from the date of its registration in the National Mining Registry.
ROYALTIES AND OTHER ENCUMBRANCES RPA is not aware of any royalties, back-in rights, or other obligations related to the
Agreement or underlying agreements.
The government of Colombia requires the payment of a 4% gross royalty for gold, based
on 80% of the closing price of the London Bullion Market for an effective rate of 3.2%, for
any production from the subject licences.
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PERMITTING Early stages of exploration including geological mapping and stream or soil
geochemistry do not require permitting. However, exploration activity involving soil
disturbance, including trenching and road and drill pad construction, requires an
environmental management plan (EMP) and approval from the Corporación autónoma
regional de Risaralda (CARDER). Drilling requires a water use and return permit.
All exploration projects require environmental insurance which can be purchased on an
annual basis during the first three years of the licence or concession contract.
Batero has submitted environmental management plans for the on-going work. RPA
understands that Batero has been granted all the required permits for surface
exploration on the property, including soil disturbance and water use and return related
to drilling, and that the permits are current. Batero initiated on-going water sampling
monitoring and mitigation activities at the commencement of the drilling activities.
Caribbean Sea
PacificOcean
GolfoDe
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Golfo deVenezuela
Lago deMaracaibo
Rio Napo
Rio Putumayo
Rio Caqueta
Rio Javari
Rio Ica
Rio Japura
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Rio Uaupes
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iqui
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Rio Meta
RioAra
ucaRio
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Colombia
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PuertoCabello
PuertoPaez
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MorganitoSanta Rita
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San Fernandode Atabapo
Cucui
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Tres EsquinasSanta AnaPuerto AsisSan Miguel
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Tumaco
BuenaventuraTulua
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Yaviza
Careoa
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PuertoBolivar
Maracaibo
MeridaBarinas
Trujillo
SanFelipe
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Barqulsimeto
San Cristobal
El Amparo
Paz de Rio
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San Juan deLos Morros
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PuertoInirida
Puerto Carreno
Arauca
Cucuta
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Riohacha
Santa Marta
Barranquilla
Cartagena
Sincelejo
Monteria
Medellin
Manizales
PereiraArmenia
Ibaque
Cali
Popayan
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Florencia
San Jose delGuaviare
Mitu
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Tunja
Yopal
MocoaPasto
Quibdo
Bucaramanga
Leticia
Willemstad
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Quito
Panama
Bogota
Oranjestad
80° 76° 72° 68°
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BATERO-QUINCHIA
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February 2012
Batero-Quinchia Project
Location Map
Batero Gold Corporation
Department of Risasalda, Colombia
Figure 4-1
4-6
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Risaraldita
Seguia
AntonioSan
Cerro
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1000
1000
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ate
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DOS QUEBRADAS
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422,000 mE 423,000 mE 424,000 mE 425,000 mE 426,000 mE
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586,0
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00
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N 421,000 mE420,000 mE
422,000 mE 423,000 mE 424,000 mE 425,000 mE 426,000 mE421,000 mE420,000 mE
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00
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Batero Gold Corp Property
Legend:
Artisanal Mining
New Road or Future Access
Existing Road
Mineralized Zone
0 500 2000
Metres
1000 1500
N
February 2012 Source: C. Baldys et al., 2009.
WGS84, UTM Zone 18N
Batero-Quinchia Project
Property Map
Batero Gold Corporation
Department of Risasalda, Colombia
Figure 4-2
4-7
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Batero Gold Corp. – Batero-Quinchia Project, Project # 1621
Technical Report NI 43-101 – Amended April 19, 2012
Rev. 0 Page 5-1
5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ACCESSIBILITY The Batero-Quinchia Project is located approximately 95 km by road from Pereira, the
capital city of the Department of Risaralda, which has a population of approximately
800,000 in its metropolitan area. Pereira is serviced by multiple flights daily from Bogota
and Medellin as well as international flights from Panama City, Panama. The drive to the
town of Quinchia from Pereira takes approximately two hours on paved roads. The
property is located about five kilometres south-southeast from the town of Quinchia.
Gravel roads provide direct access to the Dos Quebradas Cumbre exploration area.
Driving time from the town of Quinchia to the property is about 30 minutes. Access
within the property is limited to foot paths and horse/mule trails.
CLIMATE The Project area lies within the warm temperate wet forest zone according to the
Holdridge Life Zone climatic classification system and in the tropical monsoonal zone of
the Koppen climate classification chart. Climatic zones vary with elevation and are
defined as hot (greater than 24°C) below 1,000 m in the Cauca River valley; temperate
(18°C to 24°C) between 1,000 m to 2,000 m; and cold above 2,000 m (12°C to 18°C).
The rainfall ranges from 900 mm to 3,000 mm per year and typically averages greater
than 1,000 mm per year. Without significant changes in temperature, the seasons are
defined by variations in precipitation. Two rainy seasons occur, from March to May and
from September to December.
Table 5-1 illustrates the major climatic data for the closest weather station,
Pereira/Matecana (altitude 1,342 m).
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Batero Gold Corp. – Batero-Quinchia Project, Project # 1621
Technical Report NI 43-101 – Amended April 19, 2012
Rev. 0 Page 5-2
TABLE 5-1 CLIMATIC DATA - PEREIRA/MATECANA Batero Gold Corp. - Batero-Quinchia Project
J F M A M J J A S O N D Max. Temp. (°C) 28 28 28 27 27 27 28 28 27 27 27 27
Min. Temp. (°C) 16 16 16 16 16 16 16 16 16 16 16 16
Mean Temp. (°C) 22 22 22 22 21 21 22 22 22 21 21 21
Precip. (mm) 123 115 178 235 235 171 124 124 189 274 278 162
Sunshine (h) 196 171 165 132 141 151 186 178 148 136 156 179
Days w/Precip. ≥0.1 mm 14 13 17 20 21 20 17 16 19 23 22 17
(www.theweathernetwork.com)
The ecological zones defined by the Holdridge Life Zone system are zoned by elevation.
The ecological zones that pertain to the project area include:
• Premontane (subtropical) wet forest transitional to tropical and dry forest; defined as temperatures greater than 24°C, annual rainfall of 1,500 mm to 2,800 mm and elevation of 700 m to 1,000 m.
• Premontane (subtropical) wet forest defined as temperatures of 18°C to 24°C, rainfall of 2,000 mm to 4,000 mm and elevation of 1,000 m to 1,900 m.
• Lower montane (warm temperate) wet forest defined as temperatures of 12°C to
18°C, rainfall of 2,000 mm to 4,000 mm and elevation of 1,900 m to 2,900 m.
Exploration activities are possible year round.
LOCAL RESOURCES AND INFRASTRUCTURE According to the Departamento Administrativo Nacional de Estadistica (DANE) census
of 2005, the Municipality of Quinchia had a population of 31,849. Limited resources are
available in the town of Quinchia including emergency medical services, temporary
accommodations and fuel. Quinchia has daily bus service to Pereira. A greater range of
services are available in Pereira. Any mining development on the project would have
access to the national electrical grid. Three 230 kV high tension power lines run along
the Cauca River Valley. A 132 kV sub-station at Marmato supplies power to the
surrounding area. An abandoned railway line runs along the east side of the Cauca
River. Abundant water is available locally for process purposes.
There is no permanent infrastructure on the property.
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Batero Gold Corp. – Batero-Quinchia Project, Project # 1621
Technical Report NI 43-101 – Amended April 19, 2012
Rev. 0 Page 5-3
PHYSIOGRAPHY The property is located within the Cauca-Patia or Inter-Andean physiographic province
which lies between the Central and Western Cordillera. As such, it is located in steep,
mountainous and relatively rugged terrain at elevations ranging from 800 MASL to 2,800
MASL. Elevation within the Quinchia property varies from 1,300 MASL to 2,000 MASL.
The natural vegetation is dominated by lush, low-growth Andean forest and dense
secondary scrub growth. Much of the original forest cover has been cleared for
agriculture and grazing, particularly at lower elevations. Land is used primarily for
growing coffee and sugar cane and lesser areas for cattle grazing. Subsistence farming
crops include plantain, beans, bananas and manioc.
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Batero Gold Corp. – Batero-Quinchia Project, Project # 1621
Technical Report NI 43-101 – Amended April 19, 2012
Rev. 0 Page 6-1
6 HISTORY PRIOR OWNERSHIP The licences which comprise the Quinchia Property were acquired by Juan David Uribe
Hurtabo and Silvia Stella Rios Martinez (the Vendors) in 1998. The property was
optioned by the Vendors to AngloGold Ashanti (AGA) in 2005. From 2005 to 2008, a
subsidiary of AGA, Sociedad Kedahda S.A. (Kedahda), carried out exploration programs
consisting of geological mapping and sampling, soil sampling, diamond drilling,
preliminary metallurgical testing, and airborne geophysics.
In November 2007, Caribbean Copper and Gold Corporation (Caribbean) entered into
an agreement with AGA whereby it could earn a 100% interest in the property.
Caribbean assumed AGA’s responsibilities with respect to the underlying agreement. In
2009, Caribbean and AGA terminated the option agreement and the property reverted to
the Vendors.
In 2010, Batero acquired the Quinchia property through its acquisition of all the issued
and outstanding shares of Bahia, a Panamanian company incorporated to hold all of the
issued and outstanding capital in Minera Quinchia, a Colombian company which holds
all the rights in the Quinchia property.
EXPLORATION HISTORY Artisanal mining has taken place in the Batero-Quinchia Project area from Pre-
Colombian to modern times. Recent historical accounts indicate that artisanal gold
production in the area was greatest during the 1950s (Rodriguez et al., 2000). Interest
was renewed in the area in the late 1970s and culminated in the 1980s in the Miraflores
area with the “Associacion de Mineros de Miraflores”, a local artisanal mining
cooperative.
During the 1990s, the Quinchia area drew the attention of various Canadian junior
companies, some of whom acquired ground in the general area. In 1997, a subsidiary of
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Batero Gold Corp. – Batero-Quinchia Project, Project # 1621
Technical Report NI 43-101 – Amended April 19, 2012
Rev. 0 Page 6-2
TVX Gold Inc., TVX Mineria de Colombia, completed a comprehensive review of the
Quinchia property but did not follow up with ground work.
In 2000, INGEOMINAS undertook a series of technical studies in the area including
geological mapping, geochemical and geophysical surveying and prognostic (non NI 43-
101 compliant) resource estimations (Baldys and Anderson, 2010).
In May 2005, Kedahda completed reconnaissance sampling in selected areas within the
current property.
From April to November 2006, Kedahda completed geological mapping at a scale of
1:10,000 along the eastern part of the current property and soil sampling and detailed
geological mapping at a scale of 1:2,500 at Dos Quebradas South and La Cumbre.
Channel sampling in saprolitic diorite at Dos Quebradas returned values of greater than
3.0 g/t Au across 50 m. B-horizon soil sampling was completed on a 100 m by 25 m grid
at Dos Quebradas and on a 200 m by 50 m grid at La Cumbre. Follow up diamond
drilling of soil anomalies on both properties intersected porphyry style Au + Cu
mineralization.
From January to November 2006, Kedahda completed a 15 hole drilling program
totalling 4,090.7 m on the Dos Quebradas, La Cumbre, and El Centro targets. Table 6-1
lists the relevant information for those holes drilled by Kedahda on the Quinchia
property. Table 6-2 lists the significant intersections achieved by Kedahda. The
locations of Kedahda’s drilling are shown on Figure 6-3.
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Batero Gold Corp. – Batero-Quinchia Project, Project # 1621
Technical Report NI 43-101 – Amended April 19, 2012
Rev. 0 Page 6-3
TABLE 6-1 ANGLOGOLD ASHANTI (KEDAHDA) DIAMOND DRILLING Batero Gold Corp. – Batero-Quinchia Project
Hole Easting Northing Elevation Azimuth Dip Length Zone (m) (m)
13-03-DD001 421058.79 586882.71 1,625.16 88.5 -60 23.37 Dos Quebradas 13-03-DD002 421059.75 586883.95 1,625.16 90 -60 318 Dos Quebradas 13-03-DD003 421384.12 586915.05 1,523.4 268.5 -60 270 Dos Quebradas 13-03-DD004 421192.32 586676.44 1,617.42 270 -45 170.55 Dos Quebradas 13-03-DD005 421271.57 586647.52 1,555.61 270 -45 261.6 Dos Quebradas 13-03-DD006 421273.79 586649.61 1,555.3 90 -50 250.75 Dos Quebradas 13-03-DD007 420701.88 585386.53 1,893.54 90 -60 265.3 La Cumbre 13-03-DD008 420980.97 585399.06 1,865.31 270 -60 282.65 La Cumbre 13-03-DD009 420793.21 585712.7 1,871.29 90 -60 245 La Cumbre 13-03-DD010 420791.83 585711.72 1,872.14 270 -55 249 La Cumbre 13-03-DD011 421130.12 586390.39 1,615.69 270 -50 259.3 Dos Quebradas 13-03-DD012 421096.38 586062.96 1,676.74 270 -50 250 El Centro 13-03-DD013 421098.53 586059.91 1,678.31 160 -50 250.35 El Centro 13-03-DD014 421099.16 586062.57 1,678.98 70 -50 261.5 El Centro 13-03-DD015 420982.14 585401.53 1,868.45 94 -50 108.5 La Cumbre 13-03-DD016 420698.58 585388.14 1,892.78 269.5 -51 193.1 La Cumbre 13-03-DD017 421441.71 586663.18 1,599.22 270 -80 492.7 Dos Quebradas 13-03-DD018 420976.23 585153.76 1,795.35 300 -80 550 La Cumbre
Total 4,701.67
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Batero Gold Corp. – Batero-Quinchia Project, Project # 1621
Technical Report NI 43-101 – Amended April 19, 2012
Rev. 0 Page 6-4
TABLE 6-2 ANGLOGOLD ASHANTI (KEDAHDA) SIGNIFICANT RESULTS Batero Gold Corp. – Batero-Quinchia Project
Hole From To Length Au Ag Cu Zone
(m) (m) (m) (g/t) (g/t) (%) 13-03-DD002 170.0 194.0 24.0 0.761 0.59 0.09 Dos Quebradas
232.0 260.0 28.0 0.978 1.82 0.12 Dos Quebradas 13-03-DD003 146.0 158.0 12.0 0.705 1.68 0.07 Dos Quebradas
178.0 208.0 30.0 0.748 0.93 0.08 Dos Quebradas
210.0 224.0 14.0 0.680 0.87 0.08 Dos Quebradas
230.0 269.50 37.5 1.672 1.58 0.17 Dos Quebradas 13-03-DD004 84.0 116.0 32.0 0.593 1.33 0.08 Dos Quebradas 13-03-DD005 0.0 48.0 48.0 0.642 2.28 0.13 Dos Quebradas
148.0 208.0 60.0 0.915 2.12 0.09 Dos Quebradas 13-03-DD006 0.0 216.0 216.0 0.746 1.67 0.11 Dos Quebradas 13-03-DD007 4.0 54.0 50.0 0.584 1.09 0.07 La Cumbre
70.0 92.0 22.0 0.687 1.04 0.09 La Cumbre
214.0 265.3 51.3 0.612 1.48 0.13 La Cumbre 13-03-DD008 6.0 216.0 210.0 0.797 2.1 0.15 La Cumbre
230.0 282.0 52.0 0.639 2.25 0.14 La Cumbre 13-03-DD013 94.0 134.0 40.0 0.506 4.26 0.18 El Centro 13-03-DD015 6.0 68.0 62.0 0.778 1.79 0.1 La Cumbre
86.0 108.5 22.5 0.693 1.32 0.14 La Cumbre 13-03-DD016 0.0 32.0 32.0 0.534 1.22 0.06 La Cumbre 13-03-DD017 154.0 182.0 28.0 0.837 1.65 1.12 Dos Quebradas
198.0 224.0 26.0 0.532 1.95 0.1 Dos Quebradas
300.0 354.0 54.0 0.775 1.65 0.11 Dos Quebradas 13-03-DD018 4.0 34.0 30.0 0.599 2.28 0.12 La Cumbre
62.0 96.0 34.0 0.629 4.46 0.14 La Cumbre
104.0 118.0 14.0 0.580 1.79 0.11 La Cumbre
136.0 156.0 20.0 0.615 3.83 0.11 La Cumbre
166.0 176.0 10.0 0.609 2.41 0.15 La Cumbre
218.0 242.0 24.0 0.677 2.38 0.15 La Cumbre
304.0 318.0 14.0 1.231 3.07 0.22 La Cumbre
494.
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