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CALVISTA GOLD CORPORATION

NI 43-101 TECHNICAL REPORT AND RESOURCE CALCULATION

Technical Report on the California Gold Project


California, Santander Department
Republic of Colombia

For:
Calvista Gold Corporation
4 King St. West, Suite 1500
Toronto, Ontario
Canada, M5H-1B6
By:
By Vadim Galkine, Ph.D., P.Geo.,
Address:
Toronto, Ontario
May 30th, 2012

CALVISTA GOLD CORPORATION


NI 43-101 TECHNICAL REPORT AND RESOURCE CALCULATION

Date and Signature Page


This report titled Technical Report on the California Gold Project, California,
Santander Department, Republic of Colombia and dated May 30th, 2012, was prepared
and signed by the following author:
(Signed and Sealed) Vadim Galkine
Dated at Toronto, Ontario
May 30th, 2012

Vadim Galkine
Ph. D., P. Geo.

CALVISTA GOLD CORPORATION


NI 43-101 TECHNICAL REPORT AND RESOURCE CALCULATION

Table of Contents
Date and Signature Page ..................................................................................................... 2
1.0

Summary ..................................................................................................................... 8

2.0

Introduction ............................................................................................................. 10

3.0

Reliance on Other Experts .................................................................................. 12

4.0

Project Description and Location..................................................................... 13

4.1 Location.....................................................................................................................................13
4.2 Property Description and Legal Status ..........................................................................13
4.2.1 Status Notes.................................................................................................................................... 13
4.3 Option/Acquisition Transaction Agreement ...............................................................15
4.4 Mineral Licenses in Colombian Law ................................................................................17
4.5 Permitting ................................................................................................................................20
4.6 Environmental Liabilities ...................................................................................................21
4.7 Traditional Mining Activities .............................................................................................21
4.8 Other Risks Associated With the California Gold Project .......................................21

5.0
Accessibility, Climate, Local Resources, Infrastructure, and
Physiography ........................................................................................................................ 22
5.1 Accessibility .............................................................................................................................22
5.2 Climate.......................................................................................................................................22
5.3 Local Resources and Infrastructure ................................................................................22
5.4 Physiography ...........................................................................................................................22

6.0

History ....................................................................................................................... 24

7.0

Geological Setting and Mineralization............................................................ 27

8.0

Deposit Type ............................................................................................................ 66

6.1 Galway Resources Ltd...........................................................................................................24


6.2 Eco Oro Minerals Corp. ........................................................................................................25
6.3 Ventana Gold Corp. ................................................................................................................26

7.1 Regional Geology ...................................................................................................................27


7.2 Local Geology ..........................................................................................................................28
7.3 Property Geology ...................................................................................................................29
7.3.1 Specific Property Lithologies .................................................................................................. 29
7.4 Structure ...................................................................................................................................31
7.4.1 Field Measurements and Sampling....................................................................................... 37
7.4.2 Conclusions..................................................................................................................................... 57
7.4.3 Structural Analysis Recommendations ............................................................................... 58
7.5
Mineralization .................................................................................................................59
7.5.1 Alteration......................................................................................................................................... 61
8.1 Porphyry CuMoAu ............................................................................................................66

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NI 43-101 TECHNICAL REPORT AND RESOURCE CALCULATION

8.2 Noranda/Kuroko Massive Sulphide Cu-Pb-Zn ................................................................69

9.0 Exploration .................................................................................................................... 71


9.1 Geological Mapping...............................................................................................................71
9.2 Airborne Geophysics ............................................................................................................73

10.0 Drilling ....................................................................................................................... 76


10.1 Diamond Drilling.................................................................................................................76
10.2 Phase IA, 2010. .....................................................................................................................78
10.3 Phase IB, 2011 ......................................................................................................................83

11.0 Sample Preparation, Analyses, and Security ................................................... 90


11.1 Sampling Preparation .......................................................................................................90
11.2 Sampling Preparation and Security .............................................................................90

12.0 Data Verification ........................................................................................................ 92


13.0 Mineral Processing and Metallurgical Testing ............................................ 93
14.0 Mineral Resources Estimates ................................................................................ 94
14.1 Definition of Mineral Resources ....................................................................................94
14.2 Artisanal Production .........................................................................................................94
14.3 Inferred Mineral Resources ............................................................................................94
14.3.1 Introduction................................................................................................................................. 95
14.3.2 Database........................................................................................................................................ 95
14.4 Making of the Geological Model .....................................................................................97
14.5 Statistics .............................................................................................................................. 100
14.6 Composite Statistical Analysis ..................................................................................... 103
14.6.1 Outliers ....................................................................................................................................... 103
14.7 Block Model Construction ............................................................................................. 105
14.8 Structural Analysis .......................................................................................................... 105
14.9 Methods of Interpolation .............................................................................................. 107
14.10 Cross Validation ............................................................................................................. 107
14.11 Resource Estimation .................................................................................................... 107
14.12 Verification of the Model............................................................................................. 110
14.13 Summary of the Mineral Resource Estimation Methodology ........................ 110

15.0 Mineral Reserve Estimates.................................................................................. 111


16.0 Mining Methods ...................................................................................................... 112
17.0 Recovery Methods .................................................................................................. 113
18.0 Project Infrastructure........................................................................................... 114
19.0 Market Studies and Contracts ............................................................................ 115
20.0 Environmental Studies, Permitting, and Community Impact ................. 116
21.0 Capital and Operating Costs ............................................................................... 117
22.0 Economic Analysis.................................................................................................. 118
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23.0 Adjacent Properties ............................................................................................... 119


23.1 Eco Oro Minerals Corp. Angostura Project .............................................................. 119
23.2 AUX Canada Acquisition Inc. La Bodega Project.................................................... 120
23.3 Galway Resources Ltd. California Project ................................................................ 121

24.0 Other Relevant Data and Information............................................................. 124

24.1 Security Considerations................................................................................................. 124


24.2 Pramo Ecosystem ........................................................................................................... 124

25.0 Interpretation and Conclusions ........................................................................ 126


26.0 Recommendations ................................................................................................. 128
27.0 References ................................................................................................................ 130
Certificate of Qualified Person .................................................................................... 133

List of Figures
Figure 1. California Project Location........................................................................................... 10
Figure 2. Calvista Colombia Licenses (Red)................................................................................. 15
Figure 3. Regional Geology of Santander, Colombia .................................................................. 27
Figure 4. Local geology of the Callejn Blanco Prospect ............................................................ 29
Figure 5. Local geology of the Buenavista Prospect ................................................................... 29
Figure 6. Callejn Blanco Structural Interpretation .................................................................... 32
Figure 7. Buenavista Structural Interpretation ........................................................................... 32
Figure 8. Eco Oro Minerals Corp. Detailed Geological Plan View 2850 m.................................. 35
Figure 9. Eco Oro Minerals Corp. Geological Section 1,130,900 ................................................ 36
Figure 10. Postulated Mineralization Trend, California Project ................................................. 37
Figure 11. Representative Fracture Offset ................................................................................ 39
Figure 12. Veins Parallel To The Fractures.................................................................................. 40
Figure 13. Representative Mineralized Zone .............................................................................. 41
Figure 14. Callejn Blanco Fault Zone ........................................................................................ 42
Figure 15. Geological Interpretation of the Western Slope of Callejn Blanco ......................... 43
Figure 16. Fracture Dip Orientation Rose Diagram ................................................................... 44
Figure 17. Fracture Strike Orientation Rose Diagram ................................................................ 44
Figure 18. Wolf Stereonet for Station UTM E 727828, UTM N 813161..................................... 45
Figure 19. Wolf Stereonet for Station UTM E 727616, UTM N 812998..................................... 45
Figure 20. Wolf's Net Stereograms for Station UTM E 727951, UTM N 813222 ........................ 45
Figure 21. Wolf's Net Stereograms for Station UTM E 727992, UTM N 812822 ........................ 45
Figure 22. Adit Location at Sinu, Near Station 729867E/814800N ............................................ 46

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NI 43-101 TECHNICAL REPORT AND RESOURCE CALCULATION

Figure 23. Unusual Abundance of Sub-Horizontal Veins ............................................................ 47


Figure 24. Typical Slickenside Movement .................................................................................. 48
Figure 25. Location of Observed Slickensides ............................................................................ 49
Figure 26. Slickenside at Callejn Blanco License ....................................................................... 50
Figure 27. Tight Lateral Offset .................................................................................................... 51
Figure 28. Mechanical Model of Extension Fractures ................................................................ 51
Figure 29. Regional Scheme of Lineaments ................................................................................ 52
Figure 30. Callejn Blanco Prospect Lineaments ........................................................................ 52
Figure 31. Buenavista Prospect Lineaments ............................................................................... 53
Figure 32. Jordan Prospects Lineaments ................................................................................... 53
Figure 33. California Project Flexures ........................................................................................ 55
Figure 34. Silica Alteration Flexures ........................................................................................... 56
Figure 35. Kaolinite-Alunite Alteration Flexures......................................................................... 57
Figure 36. California Project Schematic Geological Cross-Section ............................................. 59
Figure 37. Distribution of Iron Oxides in the California Region .................................................. 61
Figure 38. Distribution of Hydroxyles in the California Project .................................................. 62
Figure 39. Distribution of Sericitic Alteration in the California Project ..................................... 63
Figure 40. Distribution of Silicic Alteration in the California Project .......................................... 64
Figure 41. Distribution of Kaolinite-Alunite Alteration in the California Project........................ 65
Figure 42. Hydrothermal Mineral Deposits Model ..................................................................... 66
Figure 43. Kuroko Massive Sulfide Deposit Schematic ............................................................... 69
Figure 44 Rock Chip Sampling Results ....................................................................................... 72
Figure 45. MPX Airborne Survey with Stinger ............................................................................ 73
Figure 46. Airborne Survey over the California Project .............................................................. 74
Figure 47. Potassium (K) ............................................................................................................. 75
Figure 48. Thorium (Th) .............................................................................................................. 75
Figure 49. Uranium (U) ............................................................................................................... 75
Figure 50. Thorium Potassium Ratio (Th:K) ................................................................................ 75
Figure 51. Uranium Potassium Ratio (U:K) ................................................................................. 75
Figure 52. Uranium Thorium Ratio (U:Th) .................................................................................. 75
Figure 53. First Vertical Derivative (1VD) ................................................................................... 75
Figure 54. Total Count (TC). ........................................................................................................ 75
Figure 55. Horizontal Gradient (HRG) ......................................................................................... 75
Figure 56. Callejn Blanco Prospect Drill Hole Locations ........................................................... 77
Figure 57. Buenavista Prospect Drill Hole Locations .................................................................. 77
Figure 58. Drill Holes Phase IA and IB ......................................................................................... 84
Figure 59. Sample of a Gold Standard that Failed 3 Sigma Test ................................................. 92
Figure 60. Location of the Drill Holes ......................................................................................... 97

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NI 43-101 TECHNICAL REPORT AND RESOURCE CALCULATION

Figure 61. Mineral Envelope Around the Drill Holes .................................................................. 98


Figure 62. Grade Distribution for Gold Inside the Mineral Envelope ......................................... 99
Figure 63. Perpendicular Mineralized Envelope Around the Hole Drill Holes............................ 99
Figure 64. Longitudinal Mineralized Envelope Around the Holes ............................................ 100
Figure 65. Histogram of the Gold Distribution ......................................................................... 102
Figure 66. Histograms for the Au Composites .......................................................................... 104
Figure 67. Semivariogram for Gold Composites ....................................................................... 106
Figure 68. Semivariogram for Silver Composites...................................................................... 106
Figure 69. Scatter Plot for Cross-Validation Between Au Composites and the Estimate ......... 107
Figure 70. Block Model by Gold Grade ..................................................................................... 109
Figure 71. Grade Versus Tonnage for Gold at the California Project ....................................... 110
Figure 72. Location of the Paramo Area Compared to Calvistas California Gold Project........ 125

List of Tables
Table 1. California Gold Project Concession Tenure................................................................... 13
Table 2. Concession Payments, California Gold Properties ........................................................ 16
Table 3. Rock Chip Sampling in the California Project ................................................................ 71
Table 4. Collars of Phase I Drilling Program ................................................................................ 76
Table 5. Calvista Drilling Summary for Phase IA ......................................................................... 78
Table 6. Calvista Significant Drill Intersections for Phase IA....................................................... 80
Table 7. Calvista Drilling Summary for Phase IB ......................................................................... 83
Table 8. Calvista Significant Drilling Intersections for Phase IB .................................................. 85
Table 9. Structure of the Database ............................................................................................. 96
Table 10. Inferred Mineral Resources For The Calvista Project ............................................... 108
Table 11. Angostura Resources ................................................................................................ 119
Table 12. La Bodega and La Mascota Resources ...................................................................... 120
Table 13. Las Mercedes Zone Channel Sampling...................................................................... 121
Table 14. Estimate Budget for Phase III Program ..................................................................... 129

CALVISTA GOLD CORPORATION


NI 43-101 TECHNICAL REPORT AND RESOURCE CALCULATION

1.0 Summary
Dr. Vadim Galkine from TechnoTectonics (TT) was retained by Calvista Gold Corporation
(Calvista Gold), to prepare a Technical Report on the California Project, Department of
Santander, Colombia. Calvista Gold is the sole shareholder of Sociedad Minera Calvista
Colombia, S.A.S. (Calvista Colombia), and the registered holder of the mining titles
comprising the California Project. This Technical Report includes an update on the geology and
resource estimations and applied NI 43-101 Standards of Disclosure for Mineral Projects. Dr.
Galkine worked on the property as an independent Consultant during November-December of
2011 for nine days.
On March 12th, 2010 Norvista Resources Corporation (Norvista), Calvista Gold, and Calvista
Colombia entered into an agreement whereby Calvista Gold agreed to indirectly acquire, through
Calvista Colombia, subject to certain conditions, a 100% interest in eight mining titles totaling
158.10 ha in the California mining district of Colombia by making certain cash payments and
issuing shares equal to 30% of Calvista Golds capital. Calvista Golds interest would be subject
to a one-time cash payment to be paid on the basis of US$12 per ounce estimated in NI 43-101
compliant reserves within three years of the date of the agreement, to a maximum of
US$12,000,000.
In August 26th, 2010 Calvista Colombia also acquired an option to earn up to a 100% interest in a
ninth mining title license 098-68 (El Sinu), subject to a 1.5% Net Smelter Return (NSR) Royalty
on gold and silver payable on production.
In August, 2011, Calvista Colombia entered into agreements to buy up to 100% interest in a tenth
mining title license 90-68 (El Carmen) by way of two reverse options, one for a 20% and another
for 80% of the title. A grant of a 1.5% NSR Royalty on gold and silver was also included.
In August 2011, Calvista Colombia entered into a reverse option agreement to buy an eleventh
mining title consisting of 16.66% interest in license 39-68 (Los Andes). A grant of a 1.5% NSR
Royalty on gold and silver on 16.66% of production from the property was also included.
The major asset associated with the California Project is its land position on a mineralized trend
known for high-sulphidation deposits as well as evidence of a mineralized system in current drill
results. In particular, recent drilling on the JaramallaCallejn BlancoEl Sinu licenses
(Callejn Blanco Prospect) appears to have intersected the southwestern extension of the
mineralized corridor that hosts the Angostura and La Mascota deposits owned by Eco Oro
Minerals Corp. and Aux Canada Acquisition Inc, respectively. Calvista Golds mining titles are
strategically located along the Rio La Baja fault zone, which is thought to be the structure that
controls the mineralization in the California district, including those properties mentioned above.
The California Project is located along the Rio La Baja Fault with an east-west orientation
separating metamorphic rocks to the south and felsic intrusive rocks to the north. The main
targets appear to be hosted by a felsic unit composed of porphyritic tonalities to granites, fine
grained granites to microdiorite, and very minor dykes of andesite and basalts. Calvista
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NI 43-101 TECHNICAL REPORT AND RESOURCE CALCULATION

geologists have identified three types of mineralization; a disseminated style related to the
intrusive, a vein type related to the stockwork of the intrusive, and a third style related to a
hydrothermal breccia located at shallow depths.
Vein mineralogy includes pyrite, chalcopyrite, sphalerite, and copper sulphides, with traces of
silver minerals and sometimes visible gold (VG). Gangue mineralogy includes quartz, fluorite,
with minor carbonates; silicification is present as quartz with minor calcite. Advanced argillic,
argillic, potassic, and propylitic alteration is also present.
The deposit type applied to the California Project is that of the Porphyry CuMoAu system,
given similarities in ore and gangue mineralogy, structural setting, and initial observations
relative to the structural setting.
This report includes an initial resource estimation for Phase I consisting of 38 diamond drill
holes totaling 15,054.43 metres on the property in the category of inferred mineral resources.
Highlighted in red, in the Table below, is the cut-off grade considered to be the most appropriate
for this target. The resources were estimated using a dry density of 2.4 g/cm3 and a minimum
thickness of 1.5 metres.

Cut-off

Volume
(m3*1000)

Density
(g/cm3)

Tonnes
(t*1000)

Au (g/t)

Ag (g/t)

> 2.5
2.0
1.5

964
1,233
1,960

2.4
2.4
2.4

2,314
2,959
4,704

4.14
3.71
2.98

22.87
20.21
16.56

271,540 1,500,031
311,239 1,695,455
397,401 2,208,378

1.0

3,332

2.4

7,997

2.25

12.6

510,087 2,856,489

0.5
Total

7,697
33,063

2.4
2.4

18,473
79,351

1.37
0.49

8.01
717,462 4,194,798
3.33 1,102,289 7,491,064

Au, oz

Ag, oz

*These mineral resource estimates were prepared in accordance with the CIM Standards on Mineral Resources
and Mineral Reserves, Definitions and Guidelines adopted by CIM council on August 20 th, 2000, using classical
and geoestatistical methods. There are no known environmental, permitting, legal, taxation, political, or other
relevant issues that would materially affect these estimates. Highlighted in red is the Authors best estimate for a
cut-off grade.

The Author recommends that an additional diamond drilling program (Phase III) be implemented
to explore the remainder of the Licenses. The basis for the location of the additional holes will be
the results of the previous drill hole results plus interpretation of the soil sampling, mapping, and
structural and lineament analysis currently in process in the Project.
The Phase III program should include approximately 10,000 metres of diamond drilling,
metallurgical assays, and associated exploration activities, and attract an exploration budget of
approximately C$5 million.

CALVISTA GOLD CORPORATION


NI 43-101 TECHNICAL REPORT AND RESOURCE CALCULATION

2.0 Introduction
Dr. Vadim Galkine from TechnoTectonics (TT, the Author) was retained by Calvista Gold
Corporation (Calvista, Calvista Gold, or the Client), to prepare a Technical Report on the
California Project (the Project), Department of Santander, Colombia (Figure 1). Calvista Gold
is the sole shareholder of Sociedad Minera Calvista Colombia, S.A.S. (Calvista Colombia),
and the registered holder of the mining titles comprising the California Project. This Technical
Report is in support of an update on the geology and resource estimations and conforms to NI
43-101 Standards of Disclosure for Mineral Projects.

Figure 1. California Project Location

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Calvista is a publicly held (TSX:CVZ) exploration company based in Toronto, Ontario,


dedicated to exploring and developing a mining project in Colombia.
On March 12th, 2010 Norvista, Calvista Gold, and Calvista Colombia entered into an Agreement
whereby Calvista Gold agreed to indirectly acquire through Calvista Colombia, subject to certain
conditions, a 100% interest in eight mining titles totaling 158.10 ha in the California mining
district of Colombia by making certain cash payments and issuing to the vendors of the mining
titles, or a person designated by them, shares equal to 30% of Calvista Golds capital. Calvista
Golds interest would be subject to a one-time cash payment to be paid on the basis of US$12 per
ounce estimated in NI 43-101 compliant reserves within three years of the date of the Agreement,
to a maximum of US$12,000,000.
In August 26th, 2010 Calvista Colombia, also acquired an Option to earn up to a 100% interest in
a ninth mining title License 098-68 (El Sinu), subject to a 1.5% Net Smelter Return (NSR)
Royalty on gold and silver payable on production.
In August, 2011, Calvista Colombia entered into Agreements to buy up to 100% interest in a
tenth mining title License 90-68 (El Carmen) by way of two reverse Options, one for a 20% and
another for 80% of the title. A grant of a 1.5% NSR Royalty on gold and silver was also
included.
In August 2011, Calvista Colombia entered into a reverse Option Agreement to buy an eleventh
mining title consisting of 16.66% interest in License 39-68 (Los Andes). A grant of a 1.5% NSR
Royalty on gold and silver on 16.66% of production from the property was also included.
The major asset associated with the California Project is its proximity to high-sulphidation-style
vein systems which could host similar mineralization. In particular, recent drilling on the
Jaramalla, Callejn Blanco and El Sinu Licenses appears to have intersected the southwestern
extension of the mineralized corridor that hosts the Angostura and La Mascota zones owned by
Eco Oro Minerals Corp. and AUX Canada Acquisition Inc. Calvista Golds mining titles are
strategically located along the Rio La Baja fault zone, which is thought to be the structure that
controls the mineralization in the California district.
The Author visited the property as an independent Consultant during November-December of
2011 for nine days.
The Author confirms all coordinates in this report correspond to the Colombian Gauss coordinate
system with the datum located at the Bogota Observatory.
The documentation reviewed in this Technical Report, and other sources of information, are
listed at the end of this report in Section 27 References.

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3.0 Reliance on Other Experts


The drill collar locations were confirmed by an independent topographic survey. A complete
Quality Assurance & Quality Control (QA&QC) program was implemented with SGS
Laboratories and ALS Laboratories in Colombia. During the preparation of this report,
discussions were held with:
1.

P. Geo. Ricardo Valls, VP Exploration, Calvista Gold.

2.

Dr. Jorge Cruz Martin, Project Manager, Calvista Colombia.

3.

Felix Raul Zipamoncha Yerly, Senior Geologist, Calvista Colombia.

4.

Jorge Mantilla, Environmental Director, Calvista Colombia.

5.

Adriana Ortiz, Jhon Calvo, and Julin Vargas, Geologists, Calvista Colombia.

The Author verified and applied data and information provided onsite by these specialists, as
well as information provided by the Client and other Canadian and Colombian public technical
sources. The Author also consulted an independent report on a resource estimation using
GEMCOM, which was completed by an independent contractor for Calvista Eng. Abdiel Diaz
Carmona in collaboration with P. Geo. Ricardo Valls, and Dr. Jorge Cruz Martin. The Author has
relied on these sources and on technical reports provided by the Client, and believes that he has a
reasonable basis for such reliance.
The Author has viewed but not verified legal documentation prepared by James Valdiri from
Cardenas & Cardenas lawyers of Bogota on the ownership and the land status of the Project.
Finally, the Author advises the reader of the signature date of this report, which is the cut-off date
for the information that is included in this Technical Report.
This report was prepared by Dr. Vadim Galkine, a Qualified Person (QP), who is responsible
for all sections of the report, and represents the professional opinion of the Author. This
document has been prepared based on a scope of work agreed with the Client and is subject to
inherent limitations in light of the scope of work, the methodology, and the procedures used. This
document is intended to be read as a whole and portions thereof should not be read or relied upon
unless in the context of the whole.

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4.0 Project Description and Location


4.1 Location
The California Project encompasses eleven mining titles grouped into three prospects within the
Municipality of California, located in the Province of Santander, Colombia. It is approximately
53 km by road from the nearest city of Bucaramanga, Colombia.
The property is located on the Instituto Geogrfica Augustn Codazzi (IGAC) Plancha 110-I-C
topographic map (1:25,000 scale); the approximate center of the Project is located at UTM
729,381m East and 814,726m North in Zone 18N (See Figure 2).

4.2 Property Description and Legal Status


The California Gold Project encompasses eleven mining titles grouped into three prospects,
within the Municipality of California, Province of Santander, Colombia. Collectively, these titles
cover approximately 210.97 ha.
Table 1 lists the subject mining titles, size in area, certificate number, and relevant dates. The
subject mining titles were map-staked and therefore no boundary markers exist. As of the
effective date of this Technical Report, none of the Licenses have been surveyed.
In accordance with Colombian law, the holder of the mining Licenses has a right to access the
parcel of land covered by such mining Licenses and may perform exploration and exploitation
work on them, 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 Licenses.
Table 1. California Gold Project Concession Tenure

4.2.1 Status Notes


4.2.1.1 Note 1
These Licenses correspond to exploitation Licenses that are in their second ten-year term,
requested before the expiry of their initial term by the titleholders pursuant to Decree 2655 of
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2010. Upon expiry of the Licenses, Calvista Colombia will be entitled to apply for a Concession
Agreement covering the same areas as the expired Licenses. In addition, under Law 1382 of
2010, Calvista Colombia may request the integration of some or all of its mining titles into a
single Concession Agreement, which could extend their duration. Article 101 of the Mining
Code (modified by Article 8 of Law 1382 of 2010) provides that different contiguous mining
titles belonging to one or multiple owners, which have been granted for the same minerals and
that belong to the same mineral deposit, may be integrated into a single exploration and
development contract recognized by the Government as such. The term of this unified
Agreement will be determined taking into account the term that has lapsed in the oldest mining
title included in the integration. Article 77 of the Mining Code (modified by Article 6 of Law
1382 of 2010) allows the parties to extend a Concession Agreement for up to twenty years after
the lapsing of the initial term, subject to some renegotiation of the terms of the Agreement.
Terms for the award of said extension include the filing of new technical studies, economic,
social, and environmental, that describes the actual state of the resources.
REFERENCE: http://www.secretariosenado.gov.co/senado/basedoc/ley/2001/ley_06
4.2.1.2 Note 2
Upon expiry of these Licenses, Calvista Colombia will be entitled to extend the License for
another ten years, after which there is in principle no legal possibility to extend the exploitation
period, or convert the License into a Concession Agreement, covering a map-staked area and in
good standing for a period of up to thirty years, with additional extensions possible.
4.2.1.3 Note 3
This License was originally granted by Resolution 992226 dated October 27th, 1997, and was
registered at the National Mining Registry on June 8th, 1998. Subsequently, the original
resolution was amended by Resolution 1170-45 dated May 27th, 2002. Pursuant to the notes in
the Bucaramanga Mining Registry, the new resolution was registered at the National Mining
Registry on July 23rd, 2003. Therefore, the expiry date of the License would be July 13th, 2013,
renewable for a ten-year period upon request of the holder, or by conversion into a Concession
Agreement governed by Law 685 (2001), which would extend its duration. Calvista Colombia
has been informed that the Bucaramanga Mining Registry will request that the National Mining
Registry update its files to show the expiry of the License as being July 23 rd, 2013. This change
is still underway.
4.2.1.4 Note 4
These Licenses (098-68 and 090-68) were granted the same area of 10.88 ha along with License
0107-68. By means of the Technical Opinion No. GTRB-430 of December 15th, 2010, the mining
Authority identified three levels for the exploitation of this area, each corresponding to one of
these Licenses, as follows: (i) the level beneath 2,402 m.a.s.l. corresponding to License 090-68;
(ii) the level between 2,402 and 2,460 m.a.s.l. corresponding to License 098-68; and (iii) the area
above 2,460 m.a.s.l. corresponding to License 0107-68. This Resolution is pending by the
Servicio Geolgico Colombiano (formerly Ingeominas).

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Figure 2. Calvista Colombia Licenses (Red)

4.3 Option/Acquisition Transaction Agreement


On March 12th, 2010 Norvista, Calvista Gold, Calvista Colombia, Sociedad Minera La Baja
California S.A.S. (Baja California), and Colombian individuals (The Miners) entered into a
Purchase and Sale Agreement (The Agreement), as amended, whereby The Miners agree to
sell, and Calvista Colombia agree to purchase, all The Miners rights, title, and interest in the
subject Licenses for a purchase price payable as follows:

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1. Cash consideration in the amount of US$2,155,908.54 due upon the closing of the
transaction;
2. The issuance to Baja California, as designated by The Miners, shares in the capital of
Calvista Gold Corporation equal to 30% of the outstanding capital of Calvista Gold
Corporation; and
3. A one-time payment of up to US$12,000,000 to be paid on the basis of US$12 per proven
and probable ounce of gold, to a maximum of 1,000,000 ounces estimated in a Technical
Report within three years of the effective date of the Agreement.
According to the terms of the Agreement, Calvista Gold Corporation had the option to make one
or two additional, discretionary payments to the Miners on the twelfth and twenty-fourth months
for an aggregate amount of US$1,437,271.62 following the closing of the transaction, based on
Calvista Golds decision to continue or not development of the mining titles, in connection with
which Calvista Gold has paid the Miners the twelfth month and twenty-fourth month anniversary
payments of US$718,635.68 and US$718,636,37, respectively, as per Table 2.
The Transaction closed on June 10th, 2010. As provided in the Agreement, the Miners delivered
on the closing of the Transaction fully executed copies of access and indemnification
Agreements relating to the lands covered by the mining titles.
As of the effective date of this report, all of the above mining titles are registered in the name of
Calvista Colombia S.A.S. at the National Mining Registry.
Table 2. Concession Payments, California Gold Properties

License
0132-68
0160-68
0109-68
0108-68
0100-68
0037-68
14031
0041-68
Total

Upon
First
Second
Closing
Anniversary Anniversary
US$
US$
US$
$ 340,909.00 $113,636.26 $113,636.36
$ 340,909.01 $113,636.24 $113,636.36
$ 13,636.36 $ 4,545.46 $ 4,545.46
$ 78,000.00 $ 25,999.99 $ 26,000.00
$ 98,863.61 $ 32,954.51 $ 32,954.55
$ 461,318.05 $153,772.58 $153,772.73
$ 365,454.45 $121,818.06 $121,818.18
$ 456,818.06 $152,272.58 $152,272.73
$ 2,155,908.54 $718,635.68 $718,636.37

On August 27th, 2010 Calvista Colombia entered into an Option Agreement to buy 100% interest
in License 98-68 subject to a NSR Royalty payable on production, at which the Option can be
exercised by making aggregate cash payments of US$2,000,000 to the Option holder (of which
Calvista has advanced $150,000) and issuing an aggregate of 500,000 Common Shares before
December 27th, 2012.

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In August 2011, Calvista Colombia entered into Agreements to buy up to 100% interest in
License 90-68 by way of two Reverse Options, one for a 20% exercisable as follows: i) Payment
of US$150,000 upon signing the Agreement (this amount has been paid); ii) Payment of an
additional US$150,000 (of which US$30,000 has been paid) and issuance of 50,000 common
shares upon registration; and iii) Payment of US$210,000 plus 440,000 Common Shares upon
the exercise of the Option. A grant of a 1.5% NSR Royalty on gold and silver on 20% of the
production was also included.
The 80% terms are as follows: i) Payment of US$150,000 upon signing the Agreement (this
amount has been paid); ii) Payment of an additional US$150,000 and issuance of 400,000
common shares upon registration, and iii) Payment of US$300,000 plus 400,000 Common
Shares upon the exercise of the Option. A grant of a 1.5% NSR Royalty on gold and silver on
80% of the production was also included.
If after the exercise of the Option on the 80% interest the aggregate amount of cash paid and
Common Shares issued for such exercise is less than US$2,000,000, Calvista Colombia will pay
the difference in either cash or Common Shares, at the Option of Calvista Colombia.
In August 2011, Calvista Colombia entered into a Reverse Option Agreement to buy 16.66%
interest in License 39-68 by paying US$175,000 upon signing the Agreement (which has been
paid) plus an additional US$175,000 (of which US$40,000) and issuing an aggregate of 300,000
shares, upon registration plus paying an additional amount of US$350,000 and 300,000 common
shares. Upon exercise, a grant of a 1.5% NSR Royalty on gold and silver on 16.66% of
production from the property was also included.

4.4 Mineral Licenses in Colombian Law


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 California Project is Decree 2685 of 1988
(the Previous Mining Code), which has been replaced and superseded in its entirety by Law
685 of 2001, as amended by Law 1382 of 2010 (the Modified Mining Code). The mining law
is administered by the Ministry of Mines and Energy. By means of Decree 4134 of 2011,
Ingeominas, the former mining Authority, was liquidated and divided into two entities: the
Agencia Nacional Minera (National Mining Agency), which grant mining concessions and
perform follow-up and control duties on granted mining titles, and the Servicio Geolgico
Colombiano (Colombian Geological Survey), which is in charge of performing studies to
identify the availability of natural resources in the Colombian subsoil.
Exploitation Licenses, as governed by Decree 2655 of 1988, are legal permits to exploit minerals
in a map-staked area. These Licenses were granted for a term of ten years, and as provided in
Article 46 of Decree 2655, it is possible for the title holder to opt for one of two Options at the
end of the ten-year period: (i) an extension of the License for another ten years, after which there
is no legal possibility to extend the exploitation period, or (ii) conversion into a Concession
Agreement, covering a map-staked area and in good standing for a period of up to thirty years,
with additional extensions possible. Both Exploitation Licenses and Concession Agreements are
drawn using the UTM co-ordinate system.
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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, Cnon Superficiario (Cnon), are
payable to the Colombian government on the basis of one minimum daily salary per hectare. The
current Canon rate is COP18.856 per hectare (approximately US$10.6/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
Cnon fees are no longer payable but are replaced by a production royalty payable to the
Colombian government.
Regulation of Exploitation Licenses, on the contrary, is not divided into three phases but consists
of a single ten-year period in which exploitation can take place, and in which production
royalties are payable to the Colombian government on the basis of grams extracted. No Cnon
fees are payable for Exploitation Licenses. Under Decree 2685 of 1988, Exploration Licenses
were granted as a previous stage to the granting of an Exploitation License; under those, the title
holder was entitled to explore the area for the purpose of determining the existence of mineral
reserves, for a term of one to five years, depending on the area to be explored. Exploitation
Licenses were granted for small scale mining not exceeding 250,000 m3 of extraction per year
per License.
Of the Licenses which constitute the California Project, Exploitation Licenses 0100-68, 0108-68,
0109-68, 90-68 and 0132-68 are in their second ten-year periods after which no extension is
possible; however, the Company will apply for a single Concession Agreement as noted above,
when able to do so. In addition, the Mining Authorities are now considering extending Licenses
(on a case by case basis) that are in their second ten-year periods subject to certain conditions.
License 0037-68 is identified in the National Mining Registry with code HCMK-02. It was
transferred to Calvista Colombia by virtue of Resolution No. 0048 of INGEOMINAS,
Bucaramanga, Colombia dated March 18th, 2010 and it is registered in the name of Calvista
Colombia.
License 0108-68 is identified in the National Mining Registry with code GEXG-14. It was
transferred to Calvista Colombia by virtue of Resolution No. 0042 of INGEOMINAS,
Bucaramanga, Colombia, on March 19th, 2010 and is registered in the name of Calvista
Colombia.
License 0109-68 is identified in the National Mining Registry with code GEXG-13. It was
transferred to Calvista Colombia by virtue of Resolution No. 0049 of INGEOMINAS,
Bucaramanga, Colombia on March 18th, 2010 and is registered in the name of Calvista
Colombia.
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License 0132-68 is identified in the National Mining Registry with code GEXM-65. It expires on
May 27th, 2018 and is currently in its second ten-year period. It was transferred to Calvista
Colombia by virtue of Resolution No. 0051 of INGEOMINAS, Bucaramanga, Colombia on
March 19th, 2010 and is registered in the name of Calvista Colombia.
License 0160-68 is identified in the National Mining Registry with code GHQI-05. It expires on
September 6th, 2015 but can be renewed for a ten-year period upon request or can be converted
into a Concession Agreement as noted above. It was transferred to Calvista Colombia by virtue
of Resolution No. 0046 of INGEOMINAS, Bucaramanga, Colombia on March 18th, 2010, and is
registered in the name of Calvista Colombia.
License 0100-68 is identified in the National Mining Registry with code GEXH-08. It expires on
May 20th, 2018 and is currently in its second ten-year period. It was transferred to Calvista
Colombia by virtue of Resolution No. 0048 of INGEOMINAS, Bucaramanga, Colombia on
March 18th, 2010 and is registered in the name of Calvista Colombia.
License 14031 is identified in the National Mining Registry with code FHR3-01. It expires on
July 23rd, 2013 but can be renewed for a ten-year period upon request or can be converted into a
Concession Agreement as noted above. It was transferred to Calvista Colombia by virtue of
Resolution No. 0044 of INGEOMINAS, Bucaramanga, Colombia on March 18th, 2010 and is
registered in the name of Calvista Colombia.
License 0041-68 is identified in the National Mining Registry with code GEJB-04. It expires on
July 11th, 2012 but an application to convert the License to Concession Agreement was requested
March 6th, 2012. License 0041-68 was transferred to Calvista Colombia by virtue of Resolution
No. 0045 of the INGEOMINAS in Bucaramanga dated March 18th, 2010, and is registered in the
name of Calvista Colombia.
License 098-68 expires on August 3rd, 2020 and can be renewed for a ten-year period upon
request or can be converted into a Concession Agreement as noted above. Calvista Colombia is
the holder of an Option to acquire a 100% interest in this License pursuant to an Option
Agreement entered into by Calvista Colombia and the holders of the License on August 26th,
2010. The Option has not yet been earned.
License 090-68 expires on May 20th, 2018 and is currently in its second ten-year period. It was
transferred to Calvista Colombia, pursuant to the reverse Option Agreements entered into on July
28th and August 18th, 2011 by means of Resolution GTRB-0208 of January 15th, 2011, which
transferred 60% of the License, and Resolution GTRB-021 of January 25th, 2012, which
transferred the remaining 40% of the License. Registration of the transfer before the National
Mining Registry is pending.
After the Servicio Geologico Colombiano (formerly Ingeominas), Colombias mining Authority,
transferred 100% title of License 90-68 to Calvista Colombia and denied the relief sought by
Galway Resources Holdco Ltd. (Galway) by which, inter alia, it opposed the foregoing
assignment claiming that there was an existing Option Agreement with the title holder of License
090-68 and that such Agreement was breached. Galway filed a lawsuit before the First Civil
Court of the Circuit of Bucaramanga in the City of Bucaramanga, Santander, against the former
Titleholders and Calvista Colombia. In its claim, Galway admits that it did not adhere to payment
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terms and deadlines in its Option Agreement. Notwithstanding this admitted fact, Galway seeks
to obtain a declaration that its Option Agreement with the former titleholders is valid and that
Calvistas Agreement is invalid. Galway has estimated the damages at approximately
US$340,000, and also alleges a "loss of profit" resulting from its inability to exploit the mineral
reserves in the License, which they are valuing at approximately US$15 million using a
theoretical amount of 100,000 ounce gold reserve estimate. Furthermore, Calvista Colombia
appealed Galways claim arguing the monetary amount had no rationale. As a consequence, the
Judge Eleven from the Circuit of Bucaramanga in communiqu 2012-136 dated May 8th, 2012
resolved the appeal filed by Calvista Colombia accepting Calvistas arguments and ordered the
revocation of Galways lawsuit, based on the fact that some of Galways claims were aimed at
having a judicial declaration that the contract is valid and in force, and this must follow a
different procedure. Galway had five business days to reform its claim or the claim will cease to
exist. Galway filed an amended claim on May 17th 2012, and a decision on whether this amended
claim will be admitted or rejected is pending as of the date of this Technical Report,
Galway has also made a mediation request before the Chamber of Commerce of Bogota, as a
pre-requisite to commencing civil proceedings against Calvista Colombia, alleging unlawful
competition practices by Calvista Colombia, namely tortious interference with contract and acts
of discredit resulting from Calvista Colombias execution of an Option Agreement in respect to
El Carmen. A mediation hearing was scheduled for April 10th, 2012, Calvista Colombia did not
attend the mediation hearing and filed an excuse for its absence. Galway has not filed a civil
lawsuit for unlawful competition as of the date hereof. Calvista Colombia has retained
Colombian counsel Cardenas & Cardenas to defend both of these matters vigorously and
believes that the claims are without merit.
License 039-68 expires on September 12th, 2016 and can be renewed for a ten-year period upon
request or can be converted into a Concession Agreement. Calvista Colombia is the holder of an
Option to acquire a 16.66% interest in this License pursuant to a reverse Option Agreement
entered into by Calvista Colombia and the holders of the License on July 30th, 2011.
Since the subject mining titles are Licenses, they are not subject to the annual surface payments,
however production royalties are payable to the government.

4.5 Permitting
Under an exploration License, early stages of exploration including geological mapping and
stream or soil geochemistry do not require permits, as long as the surface of the License is not
disturbed. Exploration activity involving soil disturbance, including trenching and road and drill
pad construction requires an environmental management plan and approval from the
Corporacin Autnoma Regional para la Defensa de la Meseta de Bucaramanga (CDMB).
Drilling requires a take water permit and a water discharge permit. Calvista Colombia is in
possession of all permits required for surface exploration and has submitted environmental
management plans for the proposed work on Licenses 0100-68 and 0037-68 as well as on
Licenses 14031 and 0108-68.

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4.6 Environmental Liabilities


The Clients exploration activities are subject to various government laws and regulations
relating to the protection of the environment. These environmental regulations are continually
changing and generally becoming more restrictive. As of the date of this Technical Report, the
Author believes the Client is in compliance with all environmental regulations and that the Client
is not aware of any significant environmental obligations requiring material capital outlays.
The Author is not aware of any environmental liabilities on the California Gold Project.

4.7 Traditional Mining Activities


Traditional (Artisanal) mining has historically taken place on the Clients California Project,
which may expose Calvista to liability based on the frequent violation of mining and
environmental laws by traditional miners (including their use of hazardous substances such as
cyanide). Accordingly, the Company, through Calvista Colombia, has filed requests for the
suspension of exploitation activities on the California Project by such traditional miners. In
November 2011, the Company approved six settlement Agreements with six Licenses providing
for the cessation of artisanal mining activities in exchange for the following payments to be
effected annually for a three year period: an annual cash payment of US$221,587 and the annual
issuance of such number of Common Shares with a value equal to US$147,725 (or equivalent
cash payment at the Option of the Company) subject to an aggregate maximum of 4,840,730
Common Shares, consistent with the TSX guidelines.

4.8 Other Risks Associated With the California Gold Project


The Author is not aware of any other significant factors and risks that may affect access, title, or
the right or ability to perform exploration work on the California Gold Project.

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5.0 Accessibility, Climate, Local Resources, Infrastructure, and


Physiography
5.1 Accessibility
The California Project is located approximately 53 km by road from Bucaramanga, the capital
city of the Province of Santander, which has a population of approximately 1,250,000 in its
metropolitan area. Bucaramanga is serviced by daily flights from Bogota and Medellin. The
drive to the town of California takes approximately two hours, the first 45 minutes of which are
on two lane, paved roads and the remainder of which is on dirt roads of varying quality. Access
from the town of California to the northern mining titles comprising the California Project is via
a dirt road that follows the valley of the Rio Baja de California. Access to the southern mining
titles is restricted to foot paths and horse trails.

5.2 Climate
The climate of the California Project is cool and humid, with the average annual temperature
ranging from 9C to 11C, with little seasonal change. The average annual precipitation is about
750 mm, while the average annual evaporation is approximately 1,300 mm without significant
changes in temperature, the seasons are defined by variations in precipitation. Two rainy seasons
occur, from October to November and from April to May. Exploration activities are possible year
round.

5.3 Local Resources and Infrastructure


According to the Departamento Administrativo Nacional de Estadistica (DANE) census of
2005, the municipality of California had a population of 1,783. Very limited resources are
available in the municipality of California including emergency medical services, temporary
accommodations, and fuel. California has daily bus service from Bucaramanga. A greater range
of services are available in Bucaramanga. Any mining development on the Project would have
access to the national electrical transmission grid. The town of California is serviced by a power
line from a substation in the nearby town of Matanza with a voltage of 34.5 kV and power of 5
MW.

5.4 Physiography
The Project is located in steep, mountainous, and relatively rugged terrain at elevations ranging
from about 2,000 metres to 2,600 metres above sea level in the Quebrada La Baja drainage basin.
The catchment area of the Quebrada La Baja drainage basin is approximately 124 km2 above the
town of California. The slopes are generally greater than 30. Valley floors are very limited, with
slopes extending to the banks of the quebradas.
Vegetation is described as light alpine scrub consisting of grasses and shrubs. There is
significant growth of oak and eucalyptus trees along the watercourses in areas that have not been
deforested.

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The local vegetation supports only a limited level of agriculture and livestock pasture. The
principle economic activity in the area is the small scale exploitation of gold and lesser
agriculture and cattle grazing.

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6.0 History
Gold in the greater California district was reportedly discovered in 1549 during a Spanish
military action, though the area had already been the site of mining by the indigenous Sura
people in pre-Colombian times. Spanish colonials engaged in two open pit operations in the
district at San Antonio in the La Baja portion and at La Perezosa, to the northeast of the
California Project (OPrey, 2008b).
At the end of World War I, the British company Colombian Mining Association and French
company Francia Gold and Silver operated in the area. In 1947, The Anaconda Company
completed detailed geologic surface and underground mapping and core drilling (746 m)
between the La Baja and La Alta areas. The Nippon Mining Company in 1967 undertook drilling
in the La Baja area. Exploration activity was undertaken by Placer Development and Ingeominas
in the 1970s and 1980s respectively.
Although small scale operations have taken place over the years on the various Licenses
comprising the California Project, no records of this production appear to exist.

6.1 Galway Resources Ltd.


The primary focus of historical mining and exploration activity on the Vetas property has been at
the El Volcn Mine located in the Reina de Oro Concession. The following account of the history
of the El Volcn Mine is from OPrey (2008).
The El Volcn Mine was started after the French left, by Vetas native Elias Moreno who in 1918
discovered rich gold veins in a topographic basin on the eastern flank of a long ridge in the Vetas
area known as Lomo Pozo del Rey, after the colonial open pit gold mine located on its crest. The
Moreno family opened adits at several locations in the basin and in two locations outside the
basin, each adit topographically lower than its predecessor.
In the 1940s the Colombian government awarded a contract of exploitation for the mine area to
the American Benjamin Brewer, a retired boxer, who took over the workings and put Alberto
Ferreira in charge. It was Sr. Ferreira who worked the mine until the mid-60s, when Mr. Brewer
returned with a group of associates to improve the plant. They installed a California (stamp)
mill to replace the arrastres (grinding stones) that had been in use until then. They also installed a
drip cyanidation circuit and drove the principal tunnel. In 1969, when the Colombian
government introduced its first Mining Law, Mr. Brewers initial exploitation contract was
converted to be in accordance with the new law.
In November 2007, a lease contract with option to purchase was signed between White Gold
Corporation (White Gold) and Empresa Minera Reina de Oro Ltda. (Reina de Oro) granting
White Gold the right to purchase 100% of the mineral rights to the property and 100% of the
surface rights, with no retained royalties. On January 26th, 2010 Galway announced that it had
entered into a binding Agreement to acquire a 100% interest in the Reina de Oro and Coloro
properties.

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According to OPrey (2008), current production in 2008 was 30 tpd to 40 tpd at an average grade
of 9.5 g/t Au. It is understood that Galway expects an annual production rate of 10,000 tonnes at
a grade of 9.5 g/t Au (recovered). An annual production rate of 10,000 tones would be consistent
with a daily production rate of 35 tones based on a 285 workday year.
At some time in 2010, prior to Calvista Golds acquiring an Option to earn an interest in License
098-68 (El Sinu), Galway is reported to have drilled ten holes from two set-ups on the property
overlapping in part the eastern portion of the License. These holes were drilled without the
Authorization of the holders of License 098-68 and administrative proceedings were
subsequently initiated. The reader is referred to Section 18 of this report for further discussion
regarding administrative proceedings relating to Galways drilling activities on License 098-68.
On September 8th, 2010 Galway announced that drill hole GWY-39 returned 17.1 m grading 1.5
g/t Au and 22.9 g/t Ag, including 1.5 m of 4.4 g/t Au and 109.0 g/t Ag
(www.galwayresources.com). The assay results of the other holes are not known.

6.2 Eco Oro Minerals Corp.


Modern exploration by Eco Oro Minerals Corp. (formerly Greystar Resources Inc.) commenced
in 1994, and until 1999, geologic mapping, surface rock sampling, core drilling (181 drill holes,
52,000 m), and metallurgical test work were completed. A small part of the underground
development created by artisan miners was mapped and sampled, and based on areas that were
safely able to be inspected; about 13,000 t at about 8 g/t Au has been excavated. Mineral
resource estimates were undertaken in 1997, and updated in 1999. An engineering study, termed
a pre-feasibility study at the time was also undertaken in 1998, and envisioned either; an openpit heap-leach operation, or an open pit feeding agitated leach and heap leach facilities. Kinross
Gold Corporation, who at the time was a significant shareholder in Eco Oro Minerals Corp.,
performed a mineral resource estimate update in 1999.
From 2000 to 2003, due to security constraints, no work was undertaken. From 2003, work has
included geochemical sampling, geologic mapping, adit and tunnel excavation, core drilling, and
condemnation drilling. Mineral resource estimates were performed in 2005, 2006, 2007, 2008,
and 2010. Preliminary assessment (PA) studies were completed in 2008. Mineral reserve
estimation was undertaken in 2009 together with additional metallurgical test work.
The pre-feasibility study, completed in 2009 by GRD Minproc (now a division of AMEC),
envisaged open pit mining, followed by a conventional process flow sheet using two process
routes, cyanide heap leaching of oxide, transition and low sulfur ore to produce dor, and
grinding and flotation of high sulfur/high gold content ore to produce concentrates. Based on the
assumptions in the study, the Project returned positive economics.
A feasibility study for an open pit operation was commissioned during 2010 and completed in
2011. This study did not progress to implementation and some of the technical studies executed
in this phase will be used to support the evaluation of alternative exploitation options for the
Project.

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6.3 Ventana Gold Corp.


In 1947, the Anaconda Copper Mining Company took an option on a property that encompassed
the present La Bodega property and conducted exploration via tunneling and limited core
drilling. Core recoveries were reportedly so poor that insufficient information was available to
justify an onerous payment and Anaconda released the property.
Small-scale operations over the years have driven a number of adits and tunnels on various
portions of the property exploring high-grade veins and shoots. Roughly 1,500 aggregate metres
of tunnels, drifts and raises are present on the property, most significantly at La Bodega.
Ventana Gold Corp. (Ventana) initiated exploration activities at La Bodega in March 2006
including geological mapping, channel sampling of underground workings, and property-wide
soil and geophysical surveys. Diamond drilling commenced in August 2006 and has continued
since that time.
Ventana was acquired by AUX Canada Acquisition Inc. for $1.5 billion in 2011.

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7.0 Geological Setting and Mineralization


7.1 Regional Geology
The California Project is situated within the Eastern Cordillera in northeastern Colombia. The
Eastern Cordillera bifurcates at a point south of the Maracaibo Basin. The western branch swings
to the northwest, while the eastern branch maintains the northeast trend and continues as the
Sierra de Merida in Venezuela, to the east of the Maracaibo Basin (Figure 3).

Figure 3. Regional Geology of Santander, Colombia

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The western splay of the Cordillera includes the Santander Massif within which the California
Project is located. The oldest rocks within the Santander Massif consist of Pre-Cambrian
gneisses and schists that were part of the Guyana Shield. These rocks were regionally
metamorphosed to upper amphibolite grade during dynamo-thermal metamorphism. Younger
rocks of Paleozoic age occur in the region. Diorites to granite composition intrusive rocks in the
district belong to the Triassic-Jurassic Santander Plutonic Group. Emplacement of these
intrusive rocks occurred during a period of uplift in the Triassic-Jurassic. Younger porphyries are
very common in the area and these may be as young as Tertiary (Felder et al., 2000).

7.2 Local Geology


The structural/intrusive history of the California area is summarized by Horner (2005). The PreCambrian rocks were deformed sometime in the Paleozoic. During the Mesozoic, granitic to
dioritic rocks intruded into the deformed Pre-Cambrian basement, and felsics to andesitic
volcanic rocks were extruded. At that time, part of the Eastern Cordillera was in a back-arc
setting, and local basins formed and filled with marine-transgressive sediments. During the Late
Cretaceous to the Paleocene/Eocene eras, folding and thrusting of the Eastern Cordillera resulted
in basin inversion and uplift. The porphyry stock hosting some of the mineralization in the
California area was intruded at this time. Uplift and erosion of the Eastern Cordillera, in
particular the Santander Massif, occurred during the Late Eocene to Early Oligocene period, with
reactivation of older structures and continued uplift during the Middle to Late Miocene.
Finally, starting in the Late Miocene period and continuing to the present, a major Andean
deformation event is taking place with increased strike-slip faulting, extrusion, and escape of the
triangle-shaped Maracaibo block to the north along the left-lateral Bucaramanga Fault (to its
west) and the Bocon Fault system (to its south and southwest). Basin inversion and rapid uplift
are continuing.

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7.3 Property Geology


From September 28th to October 28th, 2010 Calvista Gold completed reconnaissance mapping of
the three northern blocks. Figures 4 and 5 depict the property geology of the Callejn Blanco
and the Buenavista Prospects, respectively. The following descriptions of the lithologies and
structure are referenced from Pelletier (2010a and 2010b) with comments and additions from the
current geological staff of Calvista Gold.

Figure 4. Local geology of the Callejn Blanco Prospect

Figure 5. Local geology of the Buenavista Prospect

7.3.1 Specific Property Lithologies


LITHOLOGIES
The host rocks are mainly gneissic with some granodioritic zones located along the major fault
zones. The extent and shape of the intrusives are not yet defined.
PARAGNEISS
The gneiss is a banded paragneiss containing interstratified bands of leucocratic and
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feldspathic in composition with hornblende-rich bands. It is regionally deformed and is more


highly deformed in proximity to fault zones.
The quartzo-feldspathic (leucocratic) gneiss consists of pale grey, fine to medium grained,
homogeneous layers. The composition is quite variable and consists of 30-40% plagioclase, 2030% potassium feldspar, 30-40% quartz and 0-2% hornblende. The hornblende (melanocratic)
layers are dark, fine to medium grained, and homogeneous. They consist of 70-90% hornblende,
5-15% plagioclase, 5-10% quartz, 0-5% potassium feldspars, and 0-2% magnetite.
GRANODIORITE
This unit is a felsic intrusion displaying two distinct phases: fine to medium grained granodiorite
and porphyritic granodiorite.
The fine to medium grained granodiorite is light pinkish grey in color and corresponds to a
contact phase of the intrusive body. It is composed of 30% whitish plagioclase (1 mm to 2 mm),
10% pinkish orthoclase (1 mm to 8 mm), 2% hornblende (1 mm to 2 mm) and 58% quartzofeldspathic matrix.
The porphyritic granodiorite is pinkish grey in color and corresponds to the core of the intrusive
body. It is composed of 6% pinkish, porphyritic orthoclase (1 cm to 6 cm), 4% greyish-green
porphyritic plagioclase (1 cm to 6 cm), 60% whitish plagioclase (1 mm to 8 mm) 2% black
hornblende (1 mm to 2 mm) and 48% greyish, quartzo-feldspathic matrix.
FELSIC DYKES
The felsic dykes were only observed on the Buenavista prospect. They are beige to pale grey in
color, fine to medium grained, homogeneous and centimetric in width. They exhibit irregular
shapes and widths, intruding breccias along a fault zone. They are hosted by paragneiss.
Compositionally, they are similar to the granodiorite but contain more hornblende and less
quartz. They are composed of 60-65% plagioclase, 20-25% potassium feldspar, 10% quartz, and
0-10% hornblende. The dyke cross-cuts the gneissosity and has a different composition than the
leucocratic layers of paragneiss.
SEDIMENTARY ROCKS
Sedimentary rocks of Cretaceous age are found north of the town of California. They are divided
into two lithological units: the Tambor Formation and the Rosablanca Formation. Both strike
north-northwesterly and dip moderately to the west.
Jurassic-aged sedimentary rocks are not known in the area, although it is possible that the base of
a sandstone sequence considered to be Lower Cretaceous may be older.
Tambor Formation
The main outcrops of the Tambor Formation are situated in the area of Higuera and Agualimpia
creeks. Remnants of glauconitic and orthoquartzite sandstones are present in Chorren Creek.
The base of the Tambor Formation is composed by thin micaceous siltstone, of brown to reddish
color, alternating with benches of medium grained sandstones. Overlying, there are feldsparmicaceous sandstones of medium to coarse grain, and conglomeratic lenses, with sub angular to
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sub rounded pebbles up to six centimeters long. Shale predominates at the top, with
orthoquartzite intercalations.
The Tambor Formation appears as a faulted contact, or an unconformity, overlaying intrusive and
metamorphic rocks.
Rosablanca Formation
Good limestone outcrops can be found in the area of La Venta Creek. Limestone occurs at two
horizons, separated by eight metres to ten metres of grey shale. Although both horizons consist
of massive limestone benches, the uppermost contains locally laminated marlstone cut by calcite
veinlets. Towards the top, the detrital content increases, and limestone with fine grained
calcareous sandstone of greenish-brown color, with glauconite, occurs.
The Rosablanca Formation appears to rest concordantly upon the Tambor Formation.

7.4 Structure
The structural system appears to correspond to northeast-southwest, right-lateral regional shear
zone, generating primary east-west conjugate and secondary north-south conjugate shears. These
structures create rectangular blocks, which could host an environment for gold mineralization.
Dilation zones found at the junctions of these faults created potential conduits for the
hydrothermal fluid. There appears to be a relationship between the amount of sulphide
dissemination and gold concentration.
Figures 6 and 7 are Pelletiers (2010b) structural interpretation of the JaramallaCallejn
BlancoEl Sinu and BuenavistaTesorito areas, respectively.

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Figure 6. Callejn Blanco Structural Interpretation

Figure 7. Buenavista Structural Interpretation

Faults
A high proportion of the lineaments interpreted from aerial photography are oriented north-northeasterly, and it is likely that some of them correspond to faults.
The location of mineralized structures along the La Baja River suggests the presence of a
structural belt with a northeast strike. In the region, the presence of faults with pre- and postCretaceous movement has been demonstrated. The presence of a fault along the La Baja River,
as a possible splay off the Cucutilla Fault, has been suggested.
Cataclastic textures, accompanied by changes in the orientation and slope of joints along
Chicagu Creek, suggest faulting. The intense alteration and brecciation of the Pi de Fallo dyke
indicates a faulted structure in the direction of San Juan Creek.
A low angle reverse fault parallel to bedding is thought to displace the Tambor Formation over
the Rosablanca Formation.
High angle fault zones with slickensided surfaces and brecciated fragments usually correspond to
quartz mineralized dykes.
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Breccia Zones
Irregularly distributed outcrops along Chorrern Creek, occupying an area of approximately one
square kilometer, have igneous and sedimentary rocks with hydrothermal alteration and a
brecciated aspect.
Sedimentary rock fragments include quartz ferruginous sandstones, a matrix formed by
amorphous reddish-brown material, including sub angular and sub rounded fractured quartz
fragments. Aggregates and sericite flakes, stained by iron oxides, fill fracture zones and replace
some slightly deformed crystals, possibly feldspar. Igneous rock of a granodiorite composition
can be found in the area of Chorrern Creek. The rock, with cataclastic deformation and deuteric
alteration, has veins of epidote and orthoclase inside quartz and plagioclase. Quartz is anhedral,
fractured, and intergrown with orthoclase. The rock also contains altered hornblende crystals,
chlorite, and iron oxides.
Folds
It is possible to observe small scale folding in some sandstone layers locally. Northwest of
California, there is a synclinal structure with a north-south axis. The structure could possibly be
related to the over-thrust of the Tambor Formation over the Rosablanca Formation.
Joints
Two joint sets are developed. The predominant set strikes between N 40 W and N 70 W, while
the subordinate set strikes N 80 W to E-W.
CALLEJON BLANCO PROSPECT
The mineralization is associated with a sinistral northeast-southwest oriented shear zone
resulting in east-west synthetic conjugate and north-south antithetic conjugate faults.
The northeast to southwest oriented structures form a group of parallel faults, the most
significant of which are 5 to 15 metres wide and exhibit intense fracturing. Some segments of
the fault zone are sufficiently brecciated to display strong silicification and phyllic alteration
accompanied by copper, gold and silver mineralization.
On the Callejn Blanco (037-68) and El Sinu (098-68) Licenses, artisanal mines are related to
northeast to southwest trending structures. Secondary east-west oriented faults exhibit weak to
strong silicification attaining 1 to 6 metres in width.
On the Jaramalla (100-68) License, the northwest to southeast oriented faults exhibit
silicification, phyllic alteration, and oxidation zones from 0.5m to 2m in width. Locally,
mineralization is related to iron sulphidesoxideshydroxides within fault breccia zones oriented
northwest to southeast and changing to north-south.
The northeast to southwest structures dip from 60 north to 90, while the east-west fault zones
dip at 70 to 90.
BUENAVISTA PROSPECT
The north end of the Buenavista License (14031) is cross-cut by the Mercedes and Asseradero
northeast-southwest trending structures. These structures are in turn cut by an east-west fault
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system in the central part of the Buenavista property. In the eastern part of the Buenavista
property, a 1 - 2 m wide silicified structure yields high grades. This structure exhibits strong clay
and phyllic alteration with strong oxidation giving a reddish-purple color to the exposures. There
is a positive relationship between gold and the amount of disseminated sulphides.
In the central part of the Buenavista property, a group of three east to west oriented, parallel
faults host a mineralized zone over a width of 30 m. The hanging wall (north side) of this
structural zone is characterized by strong phyllic to argillic alteration with local disseminated
pyritic zones. The central portion of the structural zone exhibits weak phyllic alteration with
local silicification and minor pyrite. The footwall (south side) of the structural zone is silicified,
with pyrite and chalcopyrite mineralization associated with fault breccias.
The dips on the east-west faults are steep north to vertical (70-90) and the dips of the northeast
to southwest and the northwest to southeast structures are also steep to vertical (60-90).
On the Tesorito (108-68) License, the artisanal mines are related to two families of sub parallel
structures oriented east-northeast to west-southwest (tension gashes) and northwest to southeast
(antithetic join), respectively. The fault strikes are different from those on the other California
Project properties. The mineralization is located in a series of parallel structures (tension gashes)
located between the two main faults.
In the opinion of the Author there is no factual evidence in either descriptions or photographs to
support either dextral or sinistral movement along the faults in the previous reports. The Author
believes the maps show a right-lateral sense of movement along the east-north-east trending
faults in the area, while the text repetitively says "sinistral" offset.
OTHER COMPANIES
The Angostura Gold deposit, owned by Eco Oro Minerals Corp. (Eco Oro), is located
approximately 3 km to the north-east from Calvista Golds Licenses. This Project has advanced
to a near production stage, and Eco Oro Minerals Corp.s reports provide associated structural
information. Since Calvista Gold's Licenses and the Angostura deposit are situated within the
same structural frame, it has been useful to review Eco Oros technical findings as reported on
SEDAR filled documents.
Northeastsouthwest-trending right-lateral strike-slip faults are the major structural features of
the Angostura Project area, and have defined a dilation zone that have increased ground
preparation (porosity and permeability) for percolation of mineralizing fluids.
Figures 8 and 9 illustrate the distribution of the high-grade Angostura deposit veins in both plan
and section view. Veins appear to predominantly strike North-East with variations from East to
North-East to North to East-North trends. There is also a set of the East-North trending veins,
and rare West North West veins. Virtually all veins dip steeply to the north.

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Figure 8. Eco Oro Minerals Corp. Detailed Geological Plan View 2850 m

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Figure 9. Eco Oro Minerals Corp. Geological Section 1,130,900

The Author notes that there are no recorded (at the map and section scale) significant offsets of
the vein system. However, field mapping and interpretation by Calvista Gold indicates to the
Authors own field observations that parallel vein systems are also present.
The same conclusion can be (preliminarily) driven from Figure 10, where we combine the data
from the exploration maps of Ventana Gold and Calvista. One can see that there is no obvious
disturbance of the regional mineralization zone along the Angostura - La Bodega - La Rosa - La
Mascota Calvista zones. This conclusion is supported by the data collected during the Authors
field work.

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Figure 10. Postulated Mineralization Trend, California Project

7.4.1 Field Measurements and Sampling


Field measurements and other collected data are summarized in the independent report presented
by the Author to the Client.
One of the goals during field work was to take samples at the locations (stations), along with
measurements. Collecting and assaying samples on the property within and between the Licenses
was completed to test if there is any correlation between the structural characteristics and gold
content. Altogether, 53 samples were collected and analyzed.

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FAULTS, FRACTURES, AND VEIN OBSERVATIONS


Fractures
Fractures are common features of the area, readily observed in the outcrops and in the landscape
relief. At the outcrop level the fractures are abundant and can be seen and measured in most
cases.
Field observations indicate that there is virtually no significant displacement along the fracture
planes (Figure 11).

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Figure 11. Representative Fracture Offset

One of the possible interpretations is that in the massive intrusive porphyries there were no prefracture markers, which could register the later offsets. Yet, since the fractures usually develop in
the sequence, the first-formed ones could have played a role as markers if they had been
displaced by the later formed fractures. As mentioned earlier, such observations are virtually
absent.
The most likely interpretation, therefore, is that at the outcrop scale, the rocks did not
undergo any significant (brittle) deformation during and after fracturing.
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Veins
The relationships between fractures and veins in-filled with quartz and/or sulphides (usually
pyrite) remain unclear. Veins are very often parallel to the fractures, some fractures may be
slightly mineralized as well (Figure 12).

Figure 12. Veins Parallel To The Fractures

The frequency and spatial diversity of mineralized veins is much greater as compared to
fractures.
Faults
There are many fault zones indicated by tectonization, gouge, and fault rocks (See Figure 13).

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Figure 13. Representative Mineralized Zone

In most cases, however, there are no other markers of the displacement sense. It is clear that the
deformation along mentioned faults must have been significant, yet whether it was pure shearing
(or flattening) or a degree of actual shearing with the displacement is not known.
The Author visited one large-scale fault zone with apparent indications of the displacement
(Figure 14) (UTM E 729438, UTM N 814739).

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Figure 14. Callejn Blanco Fault Zone

On the opposite western slope of the valley a continuation can be seen in the trail-cut (Figure
15). Although the intensive deformation is readily visible, there are no indications of the
displacement sense as opposed to the eastern slope. The fault does not seem to have been active
during the mineralization, since the samples taken there do not show any anomalous values of
gold, silver or other elements.

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Figure 15. Geological Interpretation of the Western Slope of Callejn Blanco

FRACTURES SPATIAL DISTRIBUTION


The standard procedure during the outcrop description was to measure fracture orientations with
accompanying mineralization observations.
Figure 16 shows a generalized rose diagram for fractures dip/azimuth measured in the field, and
Figure 17 shows the same for the strikes. They must not be taken as confident statistical
representations, because of the spatial bias (measurement taken along only a few traverses) and
limited number of the measurement due to the time restrictions. Still, some preliminary
observations are obvious - the most abundant sets of fractures (yellow, and then - green) strike
sub-EW - 355 and 0-5 (dipping north), NW (305-315) and NNW (330) and dipping NE.

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Figure 16. Fracture Dip Orientation Rose Diagram

Figure 17. Fracture Strike Orientation Rose Diagram

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Figures 18-21 show the stereograms (Wolf's net) for some of the stations with such
measurements. At this time there was no evident correlation between the orientation of the
particular fracture families and the intensity of the gold mineralization.

Figure 18. Wolf Stereonet for Station


UTM E 727828, UTM N 813161

Figure 20. Wolf's Net Stereograms for Station UTM E


727951, UTM N 813222

Figure 19. Wolf Stereonet for Station


UTM E 727616, UTM N 812998

Figure 21. Wolf's Net Stereograms for Station UTM E


727992, UTM N 812822

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Satellite Image (against stereogram) comparison indicates that the mineralization could be
concentrated where there are intersections between NE striking linear structures and either EW
and/or ENE striking linear structures. Such an observation was made near Station
729867E/814800N (Figure 22).

Figure 22. Adit Location at Sinu, Near Station 729867E/814800N

During the Authors site visit, a local artisan miner guided the Author along an adit on the Sinu
licence. The adit started with an azimuth 320, and at about 35 m turned to an azimuth of 330335. At the end of the adit (at about the 70 metre mark), an exposure of coarse-grained tonalite
porphyry with moderate mineralization of about 2x2 m with multiple fractures was observed.
The unusual feature the Author noted was the abundance of sub-horizontal and gently plunging
fractures with no visible offsets (Figure 23). The local artisanal miner explained that this
observation is common knowledge among the local prospectors, that this observation is a
repetitive situation whenever the adit or shaft is close to the main gold mineralized vein.
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Generally such a situation starts to be seen at a distance about 15 m from the vein. In this case
the veins very often carry pyrite mineralization plus gold and silver as well.

Figure 23. Unusual Abundance of Sub-Horizontal Veins

There is insufficient data to explain this unusual abundance of sub-horizontal veins to the goldbearing vein, however the Author speculates that the gold-bearing veins are most likely formed
as tension cracks with fluid circulation along them and gold precipitation upon reaching
saturation. Fluid pressure is possibly high at the time, and local hydraulic failure of the rocks at
fracture walls is highly likely to occur. The veins themselves are either vertical or sub-vertical,
and the orientation of the second-order tension fractures are sub-perpendicular to the walls.
Nevertheless, the abundance (high density) of sub-horizontal fractures in the outcrops or in
the drill core may show the proximity of the gold-bearing mineralization.
SLICKENSIDES
A slickenside is a smoothly polished surface caused by frictional movement between rocks along
the two sides of a fault. This surface is normally striated in the direction of movement. The plane
may be coated by mineral fibers that grew during the fault movement, known as slickenfibres,
which also show the direction of displacement. Due to irregularities in the fault plane, exposed
slicken fibers typically have a stepped appearance that can be used to determine the sense of
movement across the fault. The surface feels smoother when the hand is moved in the same
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direction that the eroded side of the fault moved (see diagram for explanation), as the surface
steps down in that direction, like the scales on a fish when stroked from the head ( Figure 24).

Figure 24. Typical Slickenside Movement

Slickensides can be used as kinematic indicators of the movement along the fault.
During the Authors site visit, slickensides were observed in several locations. One such
location is described below.
Slickenside 729438E/814759N
This location (Figure 25) showed a fairly spacious rock wall (~2x3 m) with the slickenside
structures.

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Figure 25. Location of Observed Slickensides

Figure 26 shows an example of the slickenside.

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Figure 26. Slickenside at Callejn Blanco License

Many gold mineralized veins (See Figure 27) are oriented in such a way relative to the major
linear structure of the NE-SW orientation that the easiest explanation of their formation would be
as it follows from Figure 28.

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Figure 27. Tight Lateral Offset

Figure 28. Mechanical Model of Extension Fractures

The classical mechanical model for their origin would be right-lateral slip along the main fault
system and the veins themselves would be mineralized tension fractures (openings). In the
Authors opinion, this visible and simple geometrical pattern might have been misleading, and
resulted in right-lateral concept.
Another factor may be the regional tectonic model that is "right-lateral" with regard to major NESW faults.
LINEAMENTS
Lineaments can be defined as linear surface features, visible on a map from either topographic,
photographic, satellite, geological, or geophysical imagery. A study of the lineaments also
enables a study of the distribution of fractures and faults projected on to the earths surface. In
this study the Author has analyzed the photographic and topographic lineaments provided by
Calvista.
The linear features observed represent the surface reflection or projection of either a geological
body (such as a dyke or a layer, bed, or intrusion) or of a plane of anomalous physical property
or properties (such as a fault rupture, zone of mechanical weakness or hardness, or zone of high
or low permeability, etc).
Although the scope of this technical review was limited to a brief lineament analysis, the Author
completed a basic analysis to conclude that the there are several main lineament orientations seen
both at the regional scale (Figure 29) and the prospect scale (Figures 30 to 32).

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Figure 29. Regional Scheme of Lineaments

Figure 30. Callejn Blanco Prospect Lineaments

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Figure 31. Buenavista Prospect Lineaments

Figure 32. Jordan Prospects Lineaments

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An important note to make is that in the area with high relief, the existence of straight linear
structures on the surface projection indicate that the faults are either vertical or near vertical at
the scale of the analysis.
Five vein/fault stages were identified, from oldest to youngest, as follows:

Northeastsouthwest striking faults exhibit a steep to moderate dip to the northwest and
southeast;

Northwest and southwest striking structures exhibit dips from sub-vertical to approximately
60 to the northeast and southwest;

Eastwest to eastnortheastwestsouthwest striking structures exhibit dips ranging from 85


to 65 to the north and northeast, and south and southwest;

Northsouth and northeastsouthwest striking low-angle (5020) structures that dip to the
west, north and south; and

Northwestsoutheast, northsouth, and northeastsouthwest striking structures exhibit a


predominant steep to moderate dip to the west, and eastwest striking structures that dip
steeply to the north and south.

On initial analysis, there appears to be a correlation between the lineaments (strikes) and the
fractures Eco Oro describe in their report aforementioned. However, only those fractures and
faults which are vertical or dip steeply can be seen as straight lines in the satellite images. The
lack of slightly curved linear structures in the satellite photos gives an indication that there is no
direct and simple correlation between the main lineament systems and the fractures.
Nevertheless, the Author believes it will become more relevant to address this issue in the future
as exploration further defines zones of mineralization. Figures 33 to 35 show the Authors
interpretations of the structures and main flexures that appear to play a significant role in the
alteration or mineralization control in the region.

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Figure 33. California Project Flexures

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Figure 34. Silica Alteration Flexures

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Figure 35. Kaolinite-Alunite Alteration Flexures

Although the above interpretations are preliminary, the Author has concluded that:
1. The existing deposits (mineralization zones) seem to be located in/close to the immediate
intersections of the NE lineaments and EW lineaments;
2. Circular features may play a role in the localization of the mineralization trends;
3. Silica alteration zones appear to be spatially related to the intersections of NE lineaments and
ENE lineaments; and
4. Kaolinite-alunite alteration can be spatially related to the circular lineaments boundaries or
located within the areas bound by circular lineaments.
7.4.2 Conclusions
1. There is no direct evidence to draw conclusions that the structure formed during the event of
the mineralization was significantly changed by the tectonic processes subsequent to it;

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Therefore, further exploration activities, including drilling, should be planned as if all the
main trends of gold mineralization remained virtually undisturbed;
2. The abundance (high density) of sub-horizontal fractures in the outcrops or in the drill core
may show the proximity to gold-bearing mineralization;
3. The Satellite Image (against stereograms) comparison indicates that gold mineralization may
be concentrated where there is an intersection between NE linear structures and either EW
and/or ENE striking linear structures;
4. Some pattern asymmetry of the mineralization may be significant from a structural point of
view. Together with the observations that the veins in the area usually dip to the NW, it
becomes apparent that in the area of the licenses the main NE-SW faults may carry a reversemovement component with hanging NW wall and SE footwalls;
5. The Author did not find any factual evidence that there exists a left-lateral (sinistral)
displacement along the NE-SW faults, rather instead evidence of right-lateral (dextral)
offsets;
6. There is no direct evidence of the magnitude of the possible offsets along the faults; and
7. Limited lineament analysis suggests that: The existent deposits (mineralization zones) seem
to be located in/close to the immediate intersections of the NE lineaments and EW
lineaments and Circular features may play a role in the localization of the mineralization
trends.
7.4.3 Structural Analysis Recommendations

Further exploration activities including drilling should be planned as if all the main trends of
gold mineralization remained virtually undisturbed;

The frequency and spatial diversity of mineralized veins is much greater as compared to
fractures. The Author emphasizes that a study may be very useful for better understanding of
the mineralization pattern in the rea;

The relationships between fractures and veins in-filled with quartz and/or sulphides (usually
pyrite) remain unclear. Veins are very often parallel to the fractures, and some fractures may
be slightly mineralized as well, since the frequency and spatial diversity of mineralized veins
is much greater as compared to fractures. The Author emphasizes that a study to measure the
fractures orientation and record the all mineralization and alteration along them may be very
useful for better understanding the mineralization pattern in the area;

A full lineament analysis would provide a better understanding of a correlation between the
lineaments and mineralization pattern;

Oriented core structural analysis may help to understand the controlling fractures systems
and alteration or mineralization patterns; and

Limited analogue modeling may provide some valuable clues as to the spatial distribution of
the dilation zones controlling the mineralization and fluid flow in the system. Such an
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exercise may be helpful in deciding whether to acquire additional properties in the area for
further exploration.

7.5 Mineralization
The following description of the typical mineralization of the California mining district is
sourced from Mathur et al. (2003). Figure 36 is an idealized geologic cross-section of the area.

Figure 36. California Project Schematic Geological Cross-Section

According to core logging completed by Calvista geologists, gold mineralization at the prospects
is generally associated with copper and lead, and sometimes with silver and zinc.
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Logging indicates that there are three different geological environments for gold mineralization.
Gold is found in a hydrothermal breccia near the surface, in the intrusive as disseminated
mineralization, and in between, gold is found associated with corroded quartz veins, and
sometimes with sulphide mineralization.
The mineralogy of the epithermal gold deposits is highly diverse. In general, gold-rich pyrite is
the major ore mineral in the California district and constitutes some 80-90% of the
mineralization. Cu sulphides, Cu-Bi sulphides, and various tellurides including Au tellurides,
Au-Ag tellurides, hessite, Te-bearing tetrahedrite-tennantite, and native Te occur. Native Au is
commonly enclosed in pyrite, tetrahedrite, and bornite. W-bearing phases, such as Cu-W
sulphides and huebnerite, may be locally abundant and the alteration halo of mineralized veins
consists of alunite, jarosite, kaolinite, and quartz. Phyllic and propylitic alteration has also been
described.
In comparison to neighbouring known deposits, the mineralized zone known as the La Mascota
deposit (see Section 23) strikes in a general NE-SW direction dipping north to Calvistas
neighboring licence holders. The La Mascota mineralized zone is described as a discrete and
sheeted composite system of veins, whereas at Calvistas Callejn Blanco prospect, gold
mineralization is found in the hydrothermal breccia near the surface, in the intrusive and
associated with quartz veins (and sulphide mineralization).
Mendoza and Jaramillo (1975) have recognized four types of quartz veining in the California
area:
1. Fine to medium grained white quartz veining. Generally, these veins contain no sulphides
and are found in all rocks types. These are milky quartz veins, with thicknesses between one
meter and two metres, which could be crossed by veins and veinlets of grey quartz with
sulphides;
2. Quartz veinlets and veins, white to clear grey color, with granular pyrite with some gold
values, occupying cracks and cutting the host rock in different directions (stockwork); apparently
related to joint systems. Usually they are veins one to five centimetres thick, of a white-grey
color, with anhedral quartz locally forming mosaics between sericite aggregates. The feldspar is
anhedral to fractured subhedral, and partially sericitized. When the host rock is cut by quartz and
pyrite veins, it is altered and changes to greyish-white color, and is essentially composed of
anhedral quartz (80%) and plagioclase (10%) as sericitized anhedral crystals. The pyrite is
subhedral to anhedral, and occurs mainly in veinlets, with lesser disseminations;
3. Quartzfeldspar veins, with aplitic texture, present in irregular shapes and thicknesses, and
usually branching out into the adjacent rock. Locally the sulfides occur in lenses up to 50 cm
thick. These veins usually occur in alaskites, closely associated with zones of silicification. In
metamorphic rocks, these veins cross-cut the foliation, and exhibit a slightly greenish color.
Mafic host rocks exhibit chloritization and epidotization, or replacement by sulphides; and
4. Grey quartz veins, of massive aspect and brecciated texture, containing rock fragments,
quartz, and feldspar in a grey cryptocrystalline matrix, with disseminated sulphides. This is the
main gold bearing rock in the area. The thickness varies from a few centimetres to several
metres.
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These veins can be found in fractured and sheared zones, and are commonly related to apophyses
or porphyritic dykes. In spite of their dip and variable thickness, these veins can show as fairly
continuous along strike.
7.5.1 Alteration
As a result of the logging and the interpretation of Satellite Images conducted by the Calvista
technical team, the following types of alteration have being identified both in the core and on the
surface.
Iron Oxide Alteration
The range from possible to probable iron oxide alteration zones, depicted as a color range from
blue to yellow to red, plotted on a grey scale background of the 12.5m pixel VNIR Band 2
(Figure 37). The iron oxide images are processed to attenuate the effects of vegetation, shadows,
smoke, and clouds. These effects are never entirely eliminated.

Figure 37. Distribution of Iron Oxides in the California Region

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Argillic and Advanced Argillic Alteration


This type of alteration varies from a slight alteration of feldspar to minerals with a clayish aspect,
to a more advanced alteration state (Figure 38). Generally, the dykes contain clay altered
minerals, such as quartz, pyrite, and sericite. Some dykes contain alunite and enargite, a group
of minerals that represent an advanced argillaceous alteration state.

Figure 38. Distribution of Hydroxyles in the California Project

Propylitic Alteration
The propylitic alteration includes minerals such as chlorite, epidote, calcite, etc., and generally
appear distal from the mineralization centers. The rocks (quartz diorite and porphyry) show
partially sericitized plagioclase, in part with cores of saussuritization. Ferromagnesian minerals
are altered or replaced by chlorite and epidote, and these minerals could be surrounded, or
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replaced, by pyrite. Quartz is accessory and sometimes abundant apatite is found integrated in
the biotite.
Sericite Alteration
The range from possible to probable sericite alteration zones, depicted as a color range from blue
to yellow to red, plotted on a grey scale background of the 12.5m pixel VNIR Band 2. The
sericite images are processed to attenuate the effects of vegetation, shadows, moke, and clouds.
These effects are never entirely eliminated.
The presence of minerals such as sericite, quartz, and pyrite indicates that the sericite alteration
affects large zones of the region and appears to be a predominant alteration type (Figure 39). Its
intensity varies from narrow zones limited to the veins, to zones of several metres, mainly in the
alaskite. The rock is crossed by numerous quartz veinlets, in some places with iron and copper
sulphides, and exhibits sericitized plagioclase and potassic feldspar. In fracture zones, there are
nests of yellowishbrown biotite, sometimes partially chloritized or with sporadic epidote cores.
Pyrite is found disseminated and associated mainly with aggregates and flakes of muscovite.

Figure 39. Distribution of Sericitic Alteration in the California Project

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Silicification
The range from possible to probable silica zones, depicted as a color range from blue to yellow
to red, plotted on a grey scale background of the 12.5m pixel VNIR Band 2.
Since the deposit of sulphides is accompanied by silica precipitation, the silicification is
frequently associated to other types of alteration and is the result of the action of the solutions
over a wide range of environments (Figure 40). Generally, sericite alteration and silicification are
accompanied by pyrite; therefore areas like these can be regarded as phyllic alteration. A fringe
of approximately two kilometres in length, extending at the east border of the La Baja River,
exhibits intensively silicified rocks, locally with abundant pyrite, which produce free sulphur by
oxidation that appears mixed with limonite.

Figure 40. Distribution of Silicic Alteration in the California Project

Locally, and within this fringe, Mendoza and Jaramillo (1975) found rocks with abundant
disseminated pyrite, chalcopyrite in veinlets, and sometimes small malachite spots.
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Kaolinite-Alunite alteration
The range from probable Kaolinite to probable Alunite Hydroxyl Alteration Zones, depicted as a
color range from blue to yellow to red, plotted on a grey scale background of the 12.5m pixel
VNIR Band 2 (Fig. 41). The images are processed to attenuate the effects of vegetation,
shadows, smoke, and clouds. These effects are never entirely eliminated.

Figure 41. Distribution of Kaolinite-Alunite Alteration in the California Project

Potassic alteration
The potassic alteration includes minerals such as orthoclase, microcline, with subordinate
amounts of quartz, albite, muscovite, and epidote. This alteration is found in the core of porphyry
systems, particularly hosted by felsic intrusions like those found in the area of the project.

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8.0 Deposit Type


According to the ore models defined by the BC geological survey, the Author believes that
Calvistas California Project has most of the hallmarks of a Porphyry CuMoAu deposit
(Figure 42). Section 8.1 describes such an ore model.

Figure 42. Hydrothermal Mineral Deposits Model

8.1 Porphyry CuMoAu


CAPSULE DESCRIPTION: Stockworks of quartz veinlets, quartz veins, closely spaced
fractures and breccias containing pyrite and chalcopyrite with lesser molybdenite, bornite and
magnetite occur in large zones of economically bulk-mineable mineralization in or adjoining
porphyritic intrusions and related breccia bodies. Disseminated sulphide minerals are present,
generally in subordinate amounts. The mineralization is spatially, temporally, and genetically
associated with hydrothermal alteration of the host rock intrusions and wall rocks.
TECTONIC SETTINGS: In orogenic belts at convergent plate boundaries, commonly linked to
subduction-related magmatism. Also in association with emplacement of high-level stocks

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during extensional tectonism related to strike-slip faulting and back-arc spreading following
continent margin accretion.
DEPOSITIONAL ENVIRONMENT/GEOLOGICAL SETTING: High-level (epizonal) stock
emplacement levels in volcano-plutonic arcs, commonly oceanic volcanic island and continentmargin arcs. Virtually any type of country rock can be mineralized, but commonly the high-level
stocks and related dykes intrude their coeval and cogenetic volcanic piles.
AGE OF MINERALIZATION: Deposits are mainly Tertiary, but range from Archean to
Quaternary.
HOST/ASSOCIATED ROCK TYPES: Intrusions range from coarse-grained phaneritic to
porphyritic stocks, batholiths and dike swarms; rarely pegmatitic. Compositions range from
calcalkaline quartz diorite to granodiorite and quartz monzonite. Commonly there is multiple
emplacement of successive intrusive phases and a wide variety of breccias. Alkalic porphyry CuAu deposits are associated with syenitic and other alkalic rocks and are considered to be a
distinct deposit type.
DEPOSIT FORM: Large zones of hydrothermally altered rock contain quartz veins and
stockworks, sulphide-bearing veinlets; fractures and lesser disseminations in areas up to 10 km2
in size, commonly coincident wholly or in part with hydrothermal or intrusion breccias and dyke
swarms. Deposit boundaries are determined by economic factors that outline ore zones within
larger areas of low-grade, concentrically zoned mineralization. Cordilleran deposits are
commonly subdivided according to their morphology into three classes - classic, volcanic and
plutonic (see Sutherland Brown, 1976; McMillan and Panteleyev, 1988). In the area of the
project there may be one or both of the following classes:
Classic deposits (e.g. Berg) are stock-related with multiple emplacements at shallow depth (1 to
2 km) of generally equant, cylindrical porphyritic intrusions. Numerous dykes and breccias of
pre-, intra-, and post-mineralization age modify the stock geometry. Ore bodies occur along
margins and adjacent to intrusions as annular ore shells. Lateral outward zoning of alteration and
sulphide minerals from a weakly mineralized potassic/propylitic core is usual. Surrounding ore
zones with potassic (commonly biotite-rich) or phyllic alteration contain molybdenite
chalcopyrite, then chalcopyrite and a generally widespread propylitic, barren pyritic aureole or
'halo'.
Plutonic deposits (e.g. the Highland Valley deposits) are found in large plutonic to batholithic
intrusions immobilized at relatively deep levels, say 2 to 4 km. Related dikes and intrusive
breccia bodies can be emplaced at shallower levels. Host rocks are phaneritic coarse grained to
porphyritic. The intrusions can display internal compositional differences as a result of
differentiation with gradational to sharp boundaries between the different phases of magma
emplacement. Local swarms of dykes, many with associated breccias, and fault zones are sites of
mineralization. Ore bodies around silicified alteration zones tend to occur as diffuse vein
stockworks carrying chalcopyrite, bornite and minor pyrite in intensely fractured rocks but,
overall, sulphide minerals are sparse. Much of the early potassic and phyllic alteration in central
parts of ore bodies is restricted to the margins of mineralized fractures as selvages. Later phyllicargillic alteration forms envelopes on the veins and fractures and is more pervasive and
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widespread. Propylitic alteration is widespread but unobtrusive and is indicated by the presence
of rare pyrite with chloritized mafic minerals, saussuritized plagioclase and small amounts of
epidote.
TEXTURE/STRUCTURE: Quartz, quartz-sulphide and sulphide veinlets and stockworks;
sulphide grains in fractures and fracture selvages. Minor disseminated sulphides commonly
replacing primary mafic minerals. Quartz phenocrysts can be partially resorbed and overgrown
by silica.
ORE MINERALOGY (Principal and subordinate): Pyrite is the predominant sulphide
mineral; in some sections hematite is abundant. Ore minerals are chalcopyrite; lesser bornite and
other copper sulphides, manganese, and sphalerite.
GANGUE MINERALOGY (Principal and subordinate): Gangue minerals in mineralized
veins are mainly quartz, feldspar, with lesser K-feldspar, chlorite, calcite, epidote, and fluorite.
Many of these minerals are also pervasive alteration products of primary igneous mineral grains.
ALTERATION MINERALOGY: Quartz, K-feldspar, albite, chlorite, epidote, calcite, clay
minerals, fluorite. Early-formed alteration can be overprinted by younger assemblages. Central
and early formed potassic zones (K-feldspar and biotite) commonly coincide with ore. The older
alteration assemblages in cupriferous zones can be partially to completely overprint by later
biotite and K-feldspar and then phyllic (quartz-sericite-pyrite) alteration, less commonly argillic,
and rarely, in the uppermost parts of some ore deposits, advanced argillic alteration (kaolinitepyrophyllite).
WEATHERING: Secondary (supergene) zones carry chalcocite, covellite, and other Cu2S
minerals (digenite, djurleite, etc.), chrysocolla, native copper and copper oxide, carbonate and
sulphate minerals. Oxidized and leached zones at surface are marked by ferruginous 'cappings'
with supergene clay minerals, limonite (goethite, hematite and jarosite) and residual quartz.
ORE CONTROLS: Igneous contacts, both internal between intrusive phases and external with
wall rocks; cupolas and the uppermost, bifurcating parts of stocks, dyke swarms. Breccias are
mainly early formed intrusive and hydrothermal types. Zones of most intensely developed
fracturing give rise to ore-grade vein stockworks, notably where there are coincident or
intersecting multiple mineralized fracture sets.
ASSOCIATED DEPOSIT TYPES: Skarn Cu, porphyry Au, epithermal Au-Ag in low
sulphidation type or epithermal Cu-Au-Ag as high-sulphidation type enargite-bearing veins,
replacements and stockworks; auriferous and polymetallic base metal quartz and quartzcarbonate veins, Au-Ag and base metal sulphide mantos and replacements in carbonate and noncarbonate rocks, and placer Au.
GEOCHEMICAL SIGNATURE: Calcalkaline systems can be zoned with a cupriferous (* Mo)
ore zone having a barren, low-grade pyritic core and surrounded by a pyritic halo with
peripheral base and precious metal-bearing veins. Central zones with Cu commonly have
coincident Mo, Au and Ag with possibly Bi, W, B and Sr. Peripheral enrichment in Pb, Zn, Mn,
V, Sb, As, Se, Te, Co, Ba, Rb and possibly Hg is documented. Overall the deposits are large-scale
repositories of sulphur, mainly in the form of metal sulphides, chiefly pyrite.
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GEOPHYSICAL SIGNATURE: Ore zones, particularly those with higher Au content, can be
associated with magnetite-rich rocks and are indicated by magnetic surveys. Alternatively the
more intensely hydrothermally altered rocks, particularly those with quartz-pyrite-sericite
(phyllic) alteration produce magnetic and resistivity lows. Pyritic haloes surrounding cupriferous
rocks respond well to induced polarization (IP) surveys but in sulphide-poor systems the ore
itself provides the only significant IP response.
OTHER EXPLORATION GUIDES: Porphyry deposits are marked by large-scale, zoned metal
and alteration assemblages. Ore zones can form within certain intrusive phases and breccias or
are present as vertical 'shells' or mineralized cupolas around particular intrusive bodies.
Weathering can produce a pronounced vertical zonation with an oxidized, limonitic leached zone
at surface (leached capping), an underlying zone with copper enrichment (supergene zone with
secondary copper minerals) and at depth a zone of primary mineralization (the hypogene zone).

8.2 Noranda/Kuroko Massive Sulphide Cu-Pb-Zn


There are evidences on the studied core of the assimilation by the granitic intrusive of a
previously existing VMS type mineralization. The following are the characteristics of this ore
model (Figure 43).

Figure 43. Kuroko Massive Sulfide Deposit Schematic

CAPSULE DESCRIPTION: One or more lenses of massive pyrite, sphalerite, galena and
chalcopyrite commonly within felsic volcanic rocks in a calcalkaline bimodal arc succession.

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The lenses may be zoned, with a Cu-rich base and a Pb-Zn-rich top; low-grade stockwork zones
commonly underlie lenses and barite or chert layers may overlie them.
TECTONIC SETTING: Island arc; typically in a local extensional setting or rift environment
within, or perhaps behind, an oceanic or continental margin arc.
DEPOSITIONAL ENVIRONMENT/GEOLOGICAL SETTING: Marine volcanism;
commonly during a period of more felsic volcanism in an andesite (or basalt) dominated
succession; locally associated with fine-grained marine sediments; also associated with faults or
prominent fractures.
HOST/ASSOCIATED ROCK TYPES: Submarine volcanic arc rocks: rhyolite, dacite
associated with andesite or basalt; less commonly, in mafic alkaline arc successions; associated
epiclastic deposits and minor shale or sandstone; commonly in close proximity to felsic intrusive
rocks. Ore horizon grades laterally and vertically into thin chert or sediment layers called
informally exhalites.
DEPOSIT FORM: Concordant massive to banded sulphide lens which is typically meters to
tens of meters thick and tens to hundreds of meters in horizontal dimension; sometimes there is a
peripheral apron of "clastic" massive sulphides; underlying crosscutting stringer zone of
intense alteration and stockwork veining.
TEXTURE/STRUCTURE: Massive to well layered sulphides, typically zoned vertically and
laterally; sulphides with a quartz, chert or barite gangue (more common near top of deposit);
disseminated, stockwork and vein sulphides (footwall).
ORE MINERALOGY (Principal and subordinate): Upper massive zone: pyrite, sphalerite,
galena, chalcopyrite, pyrrhotite, tetrahedrite-tennantite, bornite, arsenopyrite. Lower massive
zone: pyrite, chalcopyrite, sphalerite, pyrrhotite, magnetite.
GANGUE MINERALOGY: Barite, chert, gypsum, anhydrite and carbonate near top of lens,
carbonate quartz, chlorite and sericite near the base.
ALTERATION MINERALOGY: Footwall alteration pipes are commonly zoned from the core
with quartz, sericite or chlorite to an outer zone of clay minerals, albite and carbonate (siderite or
ankerite).
ORE CONTROLS: More felsic component of mafic to intermediate volcanic arc succession;
near center of felsic volcanism (marked by coarse pyroclastic breccias or felsic dome);
extensional faults.
ASSOCIATED DEPOSIT TYPES: Stockwork Cu deposits; vein Cu, Pb, Zn, Ag, Au.
GEOCHEMICAL SIGNATURE: Zn, Hg and Mg halos, K addition and Na and Ca depletion of
footwall rocks; closer proximity to deposit - Cu, Ag, As, Pb; within deposit - Cu, Zn, Pb, Ba, As,
Ag, Au, Se, Sn, Bi, As.
GEOPHYSICAL SIGNATURE: Sulphide lenses usually show either an electromagnetic or
induced polarization signature depending on the style of mineralization and presence of
conductive sulphides. In recent years borehole electromagnetic methods have proven successful.
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9.0 Exploration
With the exception of a limited amount of drilling by Galway on Calvistas License 098-68 (El
Sinu) in 2010 as described in Section 6 of this report, there are no known records of exploration
on the California Project licenses prior to their acquisition by Calvista. Artisanal mining has
taken place on all the California Project mining titles. Prior to Calvistas involvement, the
mining titles have not had the benefit of modern exploration techniques.
In July 2010, Calvista initiated an exploration program consisting of geological mapping,
diamond drilling, and airborne geophysical surveying. During 2011 Calvista conducted a 10,000
diamond drilling program that was completed on January 2012, due to delays predominately
related to the weather. During that period, the company also acquired satellite image
interpretation of the entire region from PhotoSat Inc. in Vancouver, conducted soil sampling for
MMI and Enzyme leach, commenced detailed mapping and sampling of all the adits in their
licenses, completed a structural study, and continued regional mapping the area. Starting in
September, the company introduced a complete program of QA&QC that covers all aspects of
the field work and the laboratory. To date, Calvista has spent approximately C$9.5 million
dollars on exploration at their California Project.

9.1 Geological Mapping


From September 28th to October 28th 2010, Calvista Gold completed a reconnaissance mapping
and prospecting program on the northern licenses. A total of 61 rock chip samples were taken
and submitted for analysis at SGS in Peru. Table 3 lists the locations and results of Calvistas
rock chip sampling program.
Table 3. Rock Chip Sampling in the California Project
Sample
197085
197086
197087
197088
197089
197090
197091
197092
197093
197094
197095
197096
197097
197153
197154
197155
197156
197157
197158
197159
197160

Licence
37-68
37-68
37-68
14031
14031
14031
14031
14031
14031
14031
14031
14031
14031
37-68
37-68
100-68
100-68
100-68
37-68
37-68
37-68

Easting
1128127
1127714
1127720
1129846
1129846
1129862
1129483
1129483
1129518
1129518
1129621
1129710
1129710
1127308
1127308
1127483
1127483
1127493
1127686
1127679
1127649

Northing Au, g/t


1306428 0.32
1306314 0.12
1306305 10.54
1306886 2.51
1306886 0.16
1306876 0.63
1307255 0.42
1307255 68.13
1307229 0.15
1307229 0.04
1307112 6.52
1307296 2.62
1307296 2.20
1306779 6.58
1306779 0.44
1306643 0.27
1306643 1.93
1306652 0.66
1306352 0.01
1306339 0.08
1306330 0.01

Sample
197161
197162
197163
197164
197165
197166
197167
197168
197169
197170
197171
197172
197173
197174
197175
197176
197177
197178
197179
197180

Licence
37-68
98-68
98-68
98-68
100-68
100-68
100-68
37-68
37-68
37-68
37-68
37-68
37-68
37-68
37-68
37-68
37-68
37-68
37-68
100-68

Easting
1127690
1127878
1127878
1127789
1127565
1127542
1127535
1127613
1127768
1127778
1127900
1127958
1127913
1127920
1127920
1127943
1127587
1127616
1127618
1127600

Northing
1306360
1306537
1306537
1306491
1306457
1306445
1306472
1306213
1306224
1306208
1306170
1306178
1306283
1306266
1306266
1306222
1306916
1306724
1306374
1306606

Au, g/t
0.49
0.78
1.66
1.49
0.31
0.44
0.59
0.01
0.12
0.12
0.01
0.01
0.01
0.93
0.01
0.01
0.12
0.24
0.01
1.57

Sample Licence Easting Northing Au, g/t


197181 37-68 1127617 1306706 1.30
197182 98-68 1127917 1306531 0.83
197183 98-68 1127920 1306550 3.34
197184 98-68 1128020 1306548 1.89
197185 98-68 1127992 1306560 1.09
197186 98-68 1127992 1306560 2.58
197187 37-68 1127720 1306305 0.44
197188 98-68 1127978 1306546 9.80
197189 98-68 1127978 1306546 1.65
197190 14031 1129483 1307255 2.95
197191 14031 1129483 1307255 0.44
197192 14031 1129658 1307228 0.04
197193 14031 1129728 1307169 1.23
197194 14031 1129642 1307227 0.01
197195 37-68 1127685 1306276 0.01
197196 37-68 1127730 1306283 13.35
197197 37-68 1127885 1306329 0.54
197198 37-68 1127949 1306241 2.66
197199 37-68 1128053 1306330 4.92
197200 37-68 1128053 1306330 0.01

Several samples returned significant gold values (up to 68.13 g/t Au). Figure 44 shows the spatial
distribution of the gold values as well as their marked anisotropy of 98.
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Figure 44 Rock Chip Sampling Results

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9.2 Airborne Geophysics


Calvista contracted MPX Geophysics Ltd. (MPX) of Markham, Ontario, to complete an
airborne, combined magnetic and radiometric survey over all of the subject licenses and
intervening areas. MPX installed the geophysical instruments on a Bell Long Ranger helicopter
(HK 4181) chartered from Helifly Colombia in Bucaramanga on November 5th 2010 (Figure 45).

Figure 45. MPX Airborne Survey with Stinger

The survey was flown from November 9th to November 13th, 2010. The survey flight lines were
oriented at an azimuth of 149 and were spaced at 200 m intervals. Tie lines were flown at 1,000
m intervals, perpendicular to the flight lines. A total of 216 line-km of surveying was flown
(Figure 46).

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Figure 46. Airborne Survey over the California Project

Because of the steepness of the terrain and the presence of power lines, MPX was unable to fly at
the recommended 70 m height above terrain. Consequently, the radiometric data is compromised
as the elevation changes were too great for accurate radiometric data collection. Figures 47
through 55 show the main geophysical interpretation of the anomalies within the California
Project.

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Figure 47. Potassium (K)

Figure 48. Thorium (Th)

Figure 49. Uranium (U)

Figure 50. Thorium Potassium Ratio


(Th:K)

Figure 51. Uranium Potassium Ratio


(U:K)

Figure 52. Uranium Thorium Ratio


(U:Th)

Figure 53. First Vertical Derivative


(1VD)

Figure 54. Total Count (TC).

Figure 55. Horizontal Gradient (HRG)

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10.0 Drilling
10.1 Diamond Drilling
From July 2010 to January 2012, Calvista completed 38 diamond drill holes totalling 15,054.43
metres for its Phase I (IA and IB) diamond drilling program. Of this program, 2,328.10 metres (5
holes) were drilled at the Buenavista prospect, and 12,726.33 metres (33 holes) were drilled at
the Callejn Blanco prospect.
Table 4 shows the collar information of these 38 holes, and Figures 56 to 57 show the spatial
distribution of these holes. Aspects of Calvistas Phase I diamond drilling program are described
in Sections 11 to 14 of this report.
Table 4. Collars of Phase I Drilling Program

Hole
DDH-01
DDH-02
DDH-03
DDH-04
DDH-05
DDH-06
DDH-07
DDH-08
DDH-09
DDH-10
DDH-11
DDH-12
DDH-12B
DDH-13
DDH-14
DDH-15
DDH-16
DDH-17
DDH-18

Easting
1127540
1127632
1129568
1127454
1127454
1129651
1127579
1129771
1127738
1127690
1127690
1127626
1127626
1129556
1127479
1127479
1127573
1127627
1127573

Northing Elevation Depth AZ DIP


1306540 2492
360.73 135 -65
1306581 2510
500.08 314 -60
1307141 2670
436.16 355 -60
1306475 2470
333.75 163 -63
1306475 2470
500.14 144 -77
1307090 2710
481.40 352 -60
1306481 2470
201.47 140 -60
1307116 2750
461.11 180 -60
1306563 2516
349.29 140 -60
1306514 2490
56.11 140 -60
1306514 2490
117.12 140 -75
1306514 2490
126.91 140 -60
1306514 2490
481.39 140 -60
1307305 2650
450.78 180 -60
1306406 2450
387.09 140 -60
1306406 2450
390.75 140 -75
1306490 2475
482.49 140 -60
1306514 2485
430.89 140 -75
1306409 2455
384.04 140 -75

Hole
DDH-19
DDH-20
DDH-21
DDH-22
DDH-23
DDH-24
DDH-25
DDH-26
DDH-27
DDH-28
DDH-29
DDH-30
DDH-31
DDH-32
DDH-33
DDH-34
DDH-35
DDH-36
DDH-37

Easting
1127683
1127577
1127628
1129457
1127628
1127644
1127587
1127573
1127620
1127587
1127789
1127789
1127789
1127828
1127867
1128027
1127828
1127869
1128027

Northing Elevation Depth AZ


1306537 2499
345.64 140
1306484 2480
486.15 140
1306583 2510
487.88 140
1307293 2580
498.65 134
1306583 2510
288.03 140
1306476 2470
300.22 140
1306589 2515
108.20 180
1306409 2455
600.45 180
1306385 2450
68.58
0
1306589 2515
592.83 180
1306481 2490
52.73
0
1306481 2490
135.63
0
1306481 2490
600.45
0
1306518 2516
600.45 320
1306506 2476
600.45 320
1306554 2410
600.45 320
1306518 2460
600.15 320
1306526 2460
600.45 320
1306554 2410
555.34 285

DIP
-75
-45
-75
-75
-60
-60
-60
-45
-60
-45
-45
-60
-60
-45
-45
-60
-60
-60
-45

76

CALVISTA GOLD CORPORATION


NI 43-101 TECHNICAL REPORT AND RESOURCE CALCULATION

Figure 56. Callejn Blanco Prospect Drill Hole Locations

Figure 57. Buenavista Prospect Drill Hole Locations

77

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10.2 Phase IA, 2010.


From July 21st 2010 to November 14th 2010, Calvista completed a first phase of drilling
consisting of 14 diamond drill holes totalling 5,243.53 metres. The purpose of the drilling was to
test mineralized structures on the Callejn Blanco and Buenavista prospects. The following table
lists the location, depth, and orientation of each drill hole completed during Phase IA.
Table 5. Calvista Drilling Summary for Phase IA

Hole
DDH-01
DDH-02
DDH-03
DDH-04
DDH-05
DDH-06
DDH-07
DDH-08
DDH-09
DDH-10
DDH-11
DDH-12
DDH-12B
DDH-13
DDH-14

Easting
1127540
1127632
1129568
1127454
1127454
1129651
1127579
1129771
1127738
1127690
1127690
1127626
1127626
1129556
1127479

Northing Elevation Depth AZ DIP


1306540 2492
360.73 135 -65
1306581 2510
500.08 314 -60
1307141 2670
436.16 355 -60
1306475 2470
333.75 163 -63
1306475 2470
500.14 144 -77
1307090 2710
481.40 352 -60
1306481 2470
201.47 140 -60
1307116 2750
461.11 180 -60
1306563 2516
349.29 140 -60
1306514 2490
56.11 140 -60
1306514 2490
117.12 140 -75
1306514 2490
126.91 140 -60
1306514 2490
481.39 140 -60
1307305 2650
450.78 180 -60
1306406 2450
387.09 140 -60

The drilling was contracted to Kluane Colombia of Bogota, a subsidiary of Whitehorse-based


Kluane Drilling Ltd (Kluane). Kluane supplied two lightweight KD-600, hydraulic drills.
Holes were collared with HTW (71.04 mm diameter) drill core and reduced to NTW (56.23 mm
diameter) core and further to BTW (42.13 mm) core as drilling conditions dictated. The drills
were moved between drill sites using predominantly manual labor. Calvista also engaged a
number of community personnel via its major shareholder, Sociedad Minera La Baja California
78

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S.A.S. (La Baja), to construct trails and drill platforms, perform site clearing and preparation
activities, as well as moving the drills and ancillary equipment between drill sites. La Baja will
also rehabilitate the drill sites upon completion of the drilling.
Drill collars were located using hand-held GPS instruments, with all UTM coordinates reported
in the Bogota Observatory datum. Subsequent to the drilling, all drill hole collars were surveyed
with differential GPS instrumentation.
On the Callejn Blanco prospect, all holes with the exception of one (DDH-02) were drilled from
northwest to southeast. On the Buenavista prospect, the holes were drilled from south-southeast
to north-northwest. Hole DDH-08 was drilled from north to south. Hole dips varied from -60
to -77. The core was brought to the core logging facility in California on a daily basis by La
Baja personnel
The altitude of the holes at depth was determined by taking azimuth and dip readings nominally
at 30 m intervals. In holes DDH-01 to DDH-05, the readings were taken once the holes were
completed using a Flex-It instrument. From hole DDH-06 and onwards, readings were taken
with a Reflex instrument as the hole was being advanced. As of the effective date of this report,
the true width of the intersections has not yet been estimated.
A Calvista technician was present at the drill at all times. The technician logged and
photographed the core with a digital camera at the drill site and reported to the geologist by
telephone in the event of drilling problems. A Calvista geologist was present at the drill for the
termination of each hole. Upon completion, the drill casings were pulled if possible.
Drill holes DDH-01, -03, -04, -06, -07, -08, -10, and -12 were abandoned prior to reaching their
proposed depths due to difficult drilling conditions.
Table 6 (overleaf) lists the significant intersections achieved by Calvista during Phase IA. All
widths reported in this table are apparent widths, and the orientation of the mineralization is
unknown at the date of this report.

79

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NI 43-101 TECHNICAL REPORT AND RESOURCE CALCULATION

Table 6. Calvista Significant Drill Intersections for Phase IA

Hole

From
(m)

To
(m)

Width
(m)

Grade
g/t Au

Grade
ppm Ag

DDH-01
DDH-01
DDH-01
DDH-01
DDH-01
DDH-01
DDH-01
DDH-01
DDH-02
DDH-03
DDH-03
DDH-03
DDH-03
DDH-03
DDH-03
DDH-03
DDH-04
DDH-04
DDH-04
DDH-04
DDH-04
DDH-05
DDH-05
DDH-05
DDH-05
DDH-05
DDH-05
DDH-05
DDH-05
DDH-05
DDH-05
DDH-05
DDH-05

68.80
120.39
169.89
181.83
191.80
222.19
262.12
267.65
248.41
153.92
177.69
217.32
355.09
366.97
383.13
407.21
150.87
161.54
167.64
192.02
274.32
0.00
118.87
224.02
259.08
344.42
353.56
362.71
375.66
403.86
423.67
434.34
446.52

69.05
121.30
170.39
182.40
192.40
223.72
263.65
269.74
250.19
154.83
178.30
219.45
358.14
369.72
384.04
408.43
152.40
163.06
172.21
193.54
275.84
344.42
120.39
225.55
264.26
345.94
357.53
368.80
377.95
406.90
425.19
437.39
449.57

0.25
0.91
0.50
0.57
0.60
1.53
1.53
2.09
1.78
0.91
0.61
2.13
3.05
2.75
0.91
1.22
1.53
1.52
4.57
1.52
1.52
344.42
1.52
1.53
5.18
1.52
3.97
6.09
2.29
3.04
1.52
3.05
3.05

1.82
1.35
1.19
1.51
1.39
1.26
2.79
1.32
2.68
10.54
1.17
1.26
36.19
2.18
8.57
1.49
1.22
1.05
1.17
1.10
1.28
1.11
1.62
1.03
2.50
1.08
2.58
4.87
1.40
1.16
1.44
1.16
1.48

1.45
7.98
1.13
11.00
11.00
1.60
2.97
3.95
0.50
158.00
13.00
7.78
37.27
2.62
71.00
3.39
2.90
8.48
3.08
9.71
50.00
1.96
0.65
0.31
1.53
1.25
1.23
2.08
1.24
0.50
11.00
11.00
11.00

80

CALVISTA GOLD CORPORATION


NI 43-101 TECHNICAL REPORT AND RESOURCE CALCULATION

Hole

From
(m)

To
(m)

Width
(m)

Grade
g/t Au

Grade
ppm Ag

DDH-05
DDH-05
DDH-06
DDH-06
DDH-06
DDH-06
DDH-06
DDH-06
DDH-06
DDH-07
DDH-07
DDH-07
DDH-07
DDH-07
DDH-07
DDH-07
DDH-07
DDH-07
DDH-07
DDH-08
DDH-08
DDH-08
DDH-08
DDH-08
DDH-08
DDH-09
DDH-09
DDH-10
DDH-11
DDH-11
DDH-11
DDH-12
DDH-12
DDH-12
DDH-12
DDH-12

453.54
461.16
43.28
100.88
231.64
277.06
280.41
358.22
455.56
1.52
13.69
24.39
51.51
58.82
85.34
96.01
106.68
120.42
129.57
157.02
277.39
287.56
359.18
382.72
420.85
109.72
189.36
46.48
58.86
95.13
104.28
87.47
103.63
109.72
114.30
123.44

458.11
469.34
44.19
102.41
237.74
277.97
281.33
363.27
457.08
3.05
16.74
25.89
53.03
64.00
91.44
97.53
108.20
123.47
136.55
158.54
278.91
288.56
361.18
384.25
425.42
111.55
191.79
54.58
90.56
98.19
114.08
89.00
106.68
111.25
118.87
126.91

4.57
8.18
0.91
1.53
6.10
0.91
0.92
5.05
1.52
1.53
3.05
1.50
1.52
5.18
6.10
1.52
1.52
3.05
6.98
1.52
1.52
1.00
2.00
1.53
4.57
1.83
2.43
8.10
31.70
3.06
9.80
1.53
3.05
1.53
4.57
3.47

1.84
1.19
2.81
1.18
1.50
4.61
1.48
1.35
1.36
1.86
2.71
3.16
1.11
2.19
1.29
1.04
5.18
6.08
6.15
1.15
3.41
1.08
6.00
2.94
1.11
1.50
1.08
1.22
1.61
1.45
14.89
1.01
1.71
1.28
2.47
20.74

10.61
9.75
24.00
2.49
8.95
2.91
11.00
3.25
5.01
2.20
11.00
8.54
5.59
3.60
2.13
2.91
11.00
11.00
11.00
17.00
34.00
21.00
48.00
26.00
19.59
11.00
1.43
10.04
20.04
7.48
57.24
0.36
11.52
17.00
72.29
237.91

81

CALVISTA GOLD CORPORATION


NI 43-101 TECHNICAL REPORT AND RESOURCE CALCULATION

Hole

From
(m)

To
(m)

Width
(m)

Grade
g/t Au

Grade
ppm Ag

DDH-12B
DDH-12B
DDH-12B
DDH-12B
DDH-12B
DDH-13
DDH-13
DDH-13
DDH-13
DDH-13
DDH-13
DDH-13
DDH-14
DDH-14
DDH-14
DDH-14
DDH-14
DDH-14
DDH-14
DDH-14
DDH-14

99.06
113.99
118.87
137.66
193.24
12.19
105.26
116.50
152.88
169.03
261.55
399.88
16.76
64.00
99.06
193.24
202.38
208.78
220.67
296.57
330.70

108.20
115.82
131.06
138.68
199.64
13.71
108.76
118.02
154.41
170.03
265.89
404.21
19.81
65.53
100.58
193.54
204.21
211.83
222.19
298.09
332.23

9.14
1.83
12.19
1.02
6.40
1.52
3.50
1.52
1.53
1.00
4.34
4.33
3.05
1.53
1.52
0.30
1.83
3.05
1.52
1.52
1.53

1.37
1.56
3.82
1.53
18.67
2.67
1.19
1.36
1.11
1.54
1.75
1.78
2.48
3.52
1.43
1.10
1.25
2.31
1.24
2.65
1.32

20.47
35.03
94.84
2.09
7.99
8.01
7.05
20.00
17.00
87.00
12.20
20.72
1.89
6.75
4.95
11.00
5.15
4.76
1.70
0.36
0.52

82

CALVISTA GOLD CORPORATION


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10.3 Phase IB, 2011


From March 2011 to January 2012, Calvista Gold completed 23 diamond drill holes totalling
9,810.9 metres. The purpose of the drilling was to continue to test the mineralized structure on
the Jaramalla (100-68), Callejn Blanco (0037-68), and El Sinu (098-68) licenses. Table 7 lists
the holes completed by Calvista Gold.
Table 7. Calvista Drilling Summary for Phase IB

Hole
DDH-15
DDH-16
DDH-17
DDH-18
DDH-19
DDH-20
DDH-21
DDH-22
DDH-23
DDH-24
DDH-25
DDH-26
DDH-27
DDH-28
DDH-29
DDH-30
DDH-31
DDH-32
DDH-33
DDH-34
DDH-35
DDH-36
DDH-37

Easting
1127479
1127573
1127627
1127573
1127683
1127577
1127628
1129457
1127628
1127644
1127587
1127573
1127620
1127587
1127789
1127789
1127789
1127828
1127867
1128027
1127828
1127869
1128027

Northing Elevation Depth AZ DIP


1306406 2450
390.75 140 -75
1306490 2475
482.49 140 -60
1306514 2485
430.89 140 -75
1306409 2455
384.04 140 -75
1306537 2499
345.64 140 -75
1306484 2480
486.15 140 -45
1306583 2510
487.88 140 -75
1307293 2580
498.65 134 -75
1306583 2510
288.03 140 -60
1306476 2470
300.22 140 -60
1306589 2515
108.20 180 -60
1306409 2455
600.45 180 -45
1306385 2450
68.58
0 -60
1306589 2515
592.83 180 -45
1306481 2490
52.73
0 -45
1306481 2490
135.63
0 -60
1306481 2490
600.45
0 -60
1306518 2516
600.45 320 -45
1306506 2476
600.45 320 -45
1306554 2410
600.45 320 -60
1306518 2460
600.15 320 -60
1306526 2460
600.45 320 -60
1306554 2410
555.34 285 -45
83

CALVISTA GOLD CORPORATION


NI 43-101 TECHNICAL REPORT AND RESOURCE CALCULATION

The same drilling company (Kluane) and procedures were used for the subsequent phase of the
drilling program. Table 8 list the significant intersections achieved by Calvista Gold for Phase
IB, and Figure 58 shows the locations and proximity to the neighbour companies.
All widths reported in Table 8 are apparent widths, and the orientation of the mineralization is
unknown at the date of this report.

.
Figure 58. Drill Holes Phase IA and IB

84

CALVISTA GOLD CORPORATION


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Table 8. Calvista Significant Drilling Intersections for Phase IB

Hole

From
(m)

To
(m)

Width
(m)

Grade
g/t Au

Grade
ppm Ag

DDH-15
DDH-15
DDH-15
DDH-16
DDH-16
DDH-16
DDH-16
DDH-16
DDH-16
DDH-16
DDH-17
DDH-17
DDH-17
DDH-17
DDH-17
DDH-17
DDH-17
DDH-17
DDH-17
DDH-17
DDH-17
DDH-17
DDH-17
DDH-17
DDH-17
DDH-17
DDH-18
DDH-18
DDH-18
DDH-18
DDH-18
DDH-18
DDH-18
DDH-18

59.43
65.53
112.77
57.91
105.15
147.82
155.44
196.59
208.78
269.74
56.38
92.96
131.06
166.11
173.23
189.90
196.27
237.15
242.31
269.74
295.01
315.46
333.75
342.90
358.14
364.23
85.34
118.87
128.01
135.63
156.97
161.54
181.35
251.46

62.42
70.10
114.30
59.43
106.68
152.40
158.49
198.12
210.31
271.27
57.91
94.48
141.73
167.34
173.85
190.50
197.12
237.74
243.84
275.84
295.65
330.70
338.32
352.04
359.66
367.28
88.39
124.96
132.58
137.15
158.49
164.59
182.88
252.98

2.99
4.57
1.53
1.52
1.53
4.58
3.05
1.53
1.53
1.53
1.53
1.52
10.67
1.23
0.62
0.60
0.85
0.59
1.53
6.10
0.64
15.24
4.57
9.14
1.52
3.05
3.05
6.09
4.57
1.52
1.52
3.05
1.53
1.52

1.53
2.65
1.06
1.22
3.90
3.45
15.17
1.56
1.30
10.13
5.94
2.15
1.92
1.15
6.53
2.93
1.03
1.89
1.33
2.20
1.29
1.66
3.53
2.00
3.35
1.88
1.19
2.02
2.60
1.53
2.40
2.65
1.08
1.11

3.19
4.35
7.29
2.88
4.53
7.98
6.28
0.36
0.56
94.00
0.85
0.54
2.75
2.04
3.37
3.71
3.64
21.00
25.00
34.90
52.00
24.23
68.91
42.49
45.00
20.02
2.34
1.85
3.01
1.00
8.59
2.23
8.89
3.04

85

CALVISTA GOLD CORPORATION


NI 43-101 TECHNICAL REPORT AND RESOURCE CALCULATION

Hole

From
(m)

To
(m)

Width
(m)

Grade
g/t Au

Grade
ppm Ag

DDH-18
DDH-18
DDH-18
DDH-19
DDH-19
DDH-19
DDH-19
DDH-19
DDH-19
DDH-20
DDH-20
DDH-20
DDH-20
DDH-20
DDH-20
DDH-20
DDH-20
DDH-20
DDH-20
DDH-20
DDH-21
DDH-21
DDH-21
DDH-21
DDH-21
DDH-21
DDH-21
DDH-21
DDH-21
DDH-21
DDH-21
DDH-21
DDH-21
DDH-21
DDH-21
DDH-22

303.27
321.25
365.76
163.06
184.40
190.50
219.45
263.65
291.99
6.09
15.24
19.81
33.52
80.77
94.48
102.10
110.03
164.96
179.07
205.74
44.62
64.00
156.97
164.22
177.62
181.88
193.54
204.21
210.95
266.70
275.84
348.99
449.58
456.01
464.82
3.04

306.93
329.18
367.28
166.11
185.92
196.59
220.98
264.93
292.60
7.62
16.76
21.33
35.05
83.82
96.01
103.63
114.30
166.72
179.83
206.56
45.72
65.53
158.49
165.00
178.30
183.28
195.07
205.88
216.40
268.22
277.36
350.52
452.62
457.20
487.88
4.57

3.66
7.93
1.52
3.05
1.52
6.09
1.53
1.28
0.61
1.53
1.52
1.52
1.53
3.05
1.53
1.53
4.27
1.76
0.76
0.82
1.10
1.53
1.52
0.78
0.68
1.40
1.53
1.67
5.45
1.52
1.52
1.53
3.04
1.19
23.06
1.53

0.88
1.44
1.00
1.23
5.86
1.43
2.92
1.19
1.40
10.01
1.89
1.23
3.47
3.99
1.85
1.65
7.70
1.30
1.65
2.30
5.93
2.29
2.16
1.62
1.90
1.20
1.33
3.73
1.33
4.15
2.83
1.12
1.34
1.13
18.78
2.10

10.93
6.24
4.81
41.04
12.00
7.70
2.28
2.86
5.88
0.43
1.24
2.46
19.00
3.09
2.26
28.00
40.60
69.06
0.83
1.63
0.80
11.00
9.23
5.29
7.70
9.75
5.74
11.00
3.68
1.45
12.00
1.67
5.17
11.00
46.56
2.29

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Hole

From
(m)

To
(m)

Width
(m)

Grade
g/t Au

Grade
ppm Ag

DDH-22
DDH-22
DDH-22
DDH-22
DDH-22
DDH-22
DDH-22
DDH-23
DDH-23
DDH-23
DDH-23
DDH-23
DDH-24
DDH-24
DDH-24
DDH-24
DDH-24
DDH-24
DDH-24
DDH-24
DDH-24
DDH-26
DDH-26
DDH-26
DDH-26
DDH-26
DDH-26
DDH-26
DDH-26
DDH-26
DDH-26
DDH-27
DDH-27
DDH-28
DDH-28
DDH-28

10.66
16.76
161.54
169.16
184.34
353.56
440.43
146.30
220.98
229.51
243.84
248.41
12.19
33.52
60.96
73.15
80.77
108.20
114.30
143.25
179.83
96.92
123.44
134.11
178.30
199.03
236.22
448.05
466.34
484.63
579.12
36.57
59.43
109.72
144.78
155.44

12.19
18.28
163.06
173.73
185.79
355.09
441.96
147.82
226.46
233.17
245.36
249.93
13.71
35.05
62.48
77.72
82.29
109.72
115.82
144.78
181.35
98.41
129.54
135.63
179.83
199.64
237.74
449.58
467.86
486.15
582.16
53.34
68.58
111.25
146.30
156.97

1.53
1.52
1.52
4.57
1.45
1.53
1.53
1.52
5.48
3.66
1.52
1.52
1.52
1.53
1.52
4.57
1.52
1.52
1.52
1.53
1.52
1.49
6.10
1.52
1.53
0.61
1.52
1.53
1.52
1.52
3.04
16.77
9.15
1.53
1.52
1.53

2.76
1.41
1.55
1.77
1.29
3.94
2.48
1.40
3.12
1.22
1.72
1.93
1.00
1.00
5.99
2.86
1.60
1.40
6.14
17.90
1.40
2.90
1.60
2.60
73.06
3.90
1.30
4.10
1.20
5.44
4.14
9.85
10.06
4.36
1.60
4.74

3.27
25.00
3.81
42.95
23.70
21.00
52.00
1.46
1.74
0.98
3.27
5.34
20.00
3.48
0.14
11.01
8.51
1.50
0.10
654.00
1.67
0.65
1.75
4.37
29.00
6.35
1.05
1.73
0.11
1.25
76.00
40.86
39.51
7.25
5.18
5.73

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Hole

From
(m)

To
(m)

Width
(m)

Grade
g/t Au

Grade
ppm Ag

DDH-28
DDH-28
DDH-28
DDH-28
DDH-28
DDH-28
DDH-28
DDH-30
DDH-31
DDH-31
DDH-31
DDH-31
DDH-31
DDH-31
DDH-32
DDH-32
DDH-32
DDH-32
DDH-32
DDH-32
DDH-33
DDH-33
DDH-33
DDH-34
DDH-34
DDH-34
DDH-34
DDH-34
DDH-34
DDH-34
DDH-34
DDH-34
DDH-34
DDH-34
DDH-34
DDH-35

181.35
185.92
193.54
231.64
243.84
288.03
304.80
105.15
144.78
182.88
187.45
230.17
373.38
521.20
53.34
79.24
117.34
135.63
156.97
542.54
0.00
64.00
99.06
0.00
10.66
96.01
104.85
110.64
135.63
192.02
344.42
371.85
377.95
411.48
528.82
28.95

182.88
188.97
195.07
233.17
245.36
289.56
306.32
106.68
146.30
184.40
188.97
231.65
374.90
522.73
57.91
83.39
118.87
137.16
158.49
544.06
32.00
65.53
100.58
6.09
18.28
97.53
106.37
112.77
137.16
195.07
347.47
373.38
381.00
413.00
530.35
35.05

1.53
3.05
1.53
1.53
1.52
1.53
1.52
1.53
1.52
1.52
1.52
1.48
1.52
1.53
4.57
4.15
1.53
1.53
1.52
1.52
32.00
1.53
1.52
6.09
7.62
1.52
1.52
2.13
1.53
3.05
3.05
1.53
3.05
1.52
1.53
6.10

2.74
1.05
17.57
8.56
3.10
1.30
3.06
5.38
12.29
10.36
5.71
1.60
1.50
3.45
4.22
1.07
1.40
1.50
1.40
1.65
2.48
3.32
1.10
2.09
1.78
1.50
1.50
1.60
1.00
3.20
2.48
1.00
12.08
2.20
1.50
9.86

13.00
40.75
5.05
13.00
75.00
2.98
3.92
1.64
7.95
14.00
10.00
7.80
0.75
217.00
3.28
35.36
0.26
1.03
2.59
6.56
16.69
32.00
6.82
32.02
16.07
1.62
0.64
78.00
1.01
3.65
1.02
49.00
241.65
24.00
0.09
5.19

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Hole

From
(m)

To
(m)

Width
(m)

Grade
g/t Au

Grade
ppm Ag

DDH-35
DDH-35
DDH-35
DDH-35
DDH-35
DDH-35
DDH-35
DDH-35
DDH-36
DDH-36
DDH-36
DDH-36
DDH-36
DDH-36
DDH-36
DDH-36
DDH-36
DDH-36
DDH-37
DDH-37
DDH-37
DDH-37
DDH-37

35.06
80.77
128.01
138.68
149.35
155.44
394.71
469.39
0.00
22.86
35.05
60.96
74.67
118.87
137.50
184.40
461.77
548.64
0.00
152.46
153.92
175.26
425.19

36.57
83.82
129.54
140.20
152.40
156.97
396.24
472.44
12.19
24.38
48.76
68.58
76.20
121.92
139.23
185.92
463.29
550.16
15.24
153.92
155.44
178.09
426.72

1.51
3.05
1.53
1.52
3.05
1.53
1.53
3.05
12.19
1.52
13.71
7.62
1.53
3.05
1.73
1.52
1.52
1.52
15.24
1.46
1.52
2.83
1.53

9.83
4.33
1.40
2.31
2.09
2.37
1.20
1.62
1.72
1.60
5.93
2.42
3.67
2.44
2.08
1.70
11.03
2.59
2.07
1.00
1.71
1.00
10.58

8.62
13.09
1.78
3.63
5.10
4.40
0.57
67.13
13.89
49.00
37.55
6.97
2.05
5.98
2.40
1.49
640.00
0.43
42.56
5.88
7.87
5.72
4.11

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11.0 Sample Preparation, Analyses, and Security


11.1 Sampling Preparation
As indicated in Section 10, a Calvista technician was present at the drill at all times while the
drill was operational. The technician monitored the drilling, verified that the metrage markers
inserted by the drillers were correct, and quick logged and photographed the core. The
technician also ensured that the core boxes were properly secured for transportation to the core
logging and sampling facility in California.
Following Calvistas QA&QC manual, drill core was placed sequentially in metallic core boxes
at the drill. The core boxes were transported by the Client personnel on a daily basis to the core
logging and sampling facility. The core logging and sampling facility is located on a fenced
property with 24 hour security present. At the core logging facility, depth markers and box
numbers were carefully checked, the core was reconstructed, and core recoveries and rock
quality designation (RQD) were estimated. The core was then photographed with a digital
camera again.
The core was descriptively logged and marked for sampling by Calvista geologists paying
particular attention to lithologies, structure, alteration, and mineralization. Logging and sampling
information was entered into a Microsoft Access database. Logging and sampling was done
using metric measurements. The logging was completed in English following a codified system
independent of language constraints.
The entire length of the drill holes was sampled, with samples generally on the order of 1.50 m in
length, but with individual samples up to 3.05 m in length. Shorter core sample intervals were
selected based on visible mineralization and geological contacts. Samples in mineralized
sections were initially taken as short as 0.23 m in length. Core marked for sampling was sawn in
half. Half the sampled core was returned to the box and the other half was placed in a plastic
bag. A sample tag was placed in the bag and the bag was sealed with a uniquely numbered zip
tie that corresponded to the sample number. Sample numbers were marked in the core boxes with
a black, indelible ink marker. The plastic sample bags were placed in larger rice bags and sealed
for shipping.
All the core from Calvistas drilling is secured at the companys core logging and sampling
facility. At present a crusher and a splitter were introduced to process duplicates and to minimize
the nugget effect of gold. The core box was photographed using a sophisticated photo station.
The Author is of the opinion that the core logging and sampling are completed to best industry
practice.

11.2 Sampling Preparation and Security


As described in Section 11.1, following the Companys QA&QC manual, core from the
California Project was delivered to the core logging and sampling facility in California on a daily
basis. Once at the core logging and sampling facility, the core was logged, marked for sampling,
sawn, and bagged by Calvista personnel.
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Drill core samples for analysis are placed and sealed in large rice bags and stored in a secure area
prior to shipping. The core shack is under the direct supervision of Calvista staff or guarded by
private security personnel at all times. The sample storage area is locked at all times. A sample
transmittal form is prepared that identified the samples shipped and the analytical procedure
requested and assigned a unique order number for tracking. The Client uses Camp Control
software (www.campcontrol.com) to track the movement of all the samples. The samples are
delivered by Calvista personnel directly to SGS sample preparation facility in Medellin on a
weekly basis. The rice bags are weighted at the camp and upon arrival to the laboratory. Sample
pulps are back hauled to the core logging facility in California by Calvista personnel and secured
in the sample storage area.
In Medellin, the samples are crushed in a two-step process to 95% < 10 mesh and a 250 g split
was then pulverized to 95% < 140 mesh. The pulps are then shipped to SGS laboratory in Lima,
Peru, for analysis. In Lima, 50 g charges are analyzed for gold by fire assay with a gravimetric
finish (SGS lab code FAG 505). In addition, the samples are analyzed for a suite of 49 elements
by Inductively Coupled PlasmaAtomic Emission Spectroscopy (ICP-AES) and Inductively
Couple PlasmaMass Spectroscopy (ICP-MS) after a four acid digestion (SGS lab code ICM
40B).
The Author is of the opinion that the sample preparation, analyses, and security exceed industry
standards.

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12.0 Data Verification


Besides the ongoing QA&QC control conducted by SGS and available online, the Client
conducted independent QA&QC controls of the labs using blanks, duplicates, and standards.
The company has never reported issues with the blanks, and seldom had issues with the
standards. In case a standard failed, the lab repeated 25 samples before and after the failed
standard, or until the standard inserted by the lab if it did not fail the 3 sigma test.
Duplicates are also analyzed mostly for base metals.
Figure 59 shows an example of a standard that failed the 3-sigma test, which the laboratory used
to repeat the batch.

Figure 59. Sample of a Gold Standard that Failed 3 Sigma Test

The Author believes that the combination of controls between the company and SGS guarantees
the quality of the data used for the resource estimation.

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13.0 Mineral Processing and Metallurgical Testing


No mineral processing or metallurgical testing has been done on any mineralized samples from
the California Project.

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14.0 Mineral Resources Estimates


14.1 Definition of Mineral Resources
Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred,
Indicated, and Measured categories. An Inferred Mineral Resource has a lower level of
confidence than that applied to an Indicated Mineral Resource. An Indicated Mineral Resource
has a higher level of confidence than an Inferred Mineral Resource but has a lower level of
confidence than a Measured Mineral Resource.
A Mineral Resource is a concentration or occurrence of diamonds, natural solid inorganic
material, or natural solid fossilized organic material including base and precious metals, coal,
and industrial minerals in or on the Earths crust in such form and quantity and of such a grade or
quality that has reasonable prospects for economic extraction. The location, quantity, grade,
geological characteristics and continuity of a Mineral Resource are known, estimated or
interpreted from specific geological evidence and knowledge1.
The term Mineral Resource covers mineralization and natural material of intrinsic economic
interest which has been identified and estimated through exploration and sampling and within
which Mineral Reserves may subsequently be defined by the consideration and application of
technical, economic, legal, environmental, socio-economic, and governmental factors. The
phrase reasonable prospects for economic extraction implies a judgment by the Qualified
Person in respect to the technical and economic factors likely to influence the prospect of
economic extraction. A Mineral Resource is an inventory of mineralization that under
realistically assumed and justifiable technical and economic conditions might become
economically extractable. These assumptions must be presented explicitly in both public and
technical reports.
Although there has been a considerably large amount of exploration in the area, the Author
cannot consider them sufficient to establish reserves due in part to the local distribution of this
work and to the lack of any pre-feasibility studies. Therefore, this Technical Report has only
determined Inferred Mineral Resources for the Clients California Project.

14.2 Artisanal Production


There were seven producing artisanal mines in the area of the Calvista project. Reported
production from these mines for the last 15 years amount to 63 kg, however the actual number
could be as high as 360 kg for the same period due to possible non-reporting.

14.3 Inferred Mineral Resources


An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade
or quality can be estimated on the basis of geological evidence and limited sampling and
reasonably assumed, but not verified, geological and grade continuity. The estimate is based on
limited information and sampling gathered through appropriate techniques from locations such
as outcrops, trenches, pits, workings, and drill holes.
1

Source: http://www.cim.org/committees/cimdefstds_dec11_05.pdf

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Due to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be assumed
that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured
Mineral Resource as a result of continued exploration. Confidence in the estimate is insufficient
to allow the meaningful application of technical and economic parameters or to enable an
evaluation of economic viability worthy of public disclosure. Inferred Mineral Resources must
be excluded from estimates forming the basis of feasibility or other economic studies.
The inferred resources presented in this report were independently estimated by Eng. Abdiel
Diaz Carmona, using GEMCOM, and verified by the staff of Calvista and the Author of this
report using INTERDEX.
14.3.1 Introduction
The Inferred Resources for the Calvista Project were estimated using a database of 9,819
composite samples each of 1.5 m. The size of each block in the model was 25m x 25m x 10m.
The total volume of the model is of 3000m x 1300m x 1000m with a total of 624,000 blocks.
14.3.2 Database
The database was obtained from the Client. The below detection limit data was transformed as
follows:

Au by 0.001 g/t

Ag by 0.001 g/t, the values above 10 g/t were determined by FA with gravimetric finish
for an exact determination of the grade

Cu by 0.4 ppm, the values above the detection limit of 10,000 ppm were substituted by
10001 ppm

Pb by 0.1 ppm

Zn by 0.9 ppm, the values above the detection limit of 10,000 ppm, were substituted by
10001 ppm

As by 0.09 ppm

Ba by 4 ppm

Co by 0.09 ppm

Ni by 0.4 ppm

Mn by 4 ppm, the values above the detection limit of 10,000 ppm were substituted by
10001 ppm

Fe with values over 15 ppm were substituted by 16

K by 0.009 ppm

Na by 0.009 ppm

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All data was then exported in ASCI format into the following tables:
Table 9. Structure of the Database

Table

Content

Collars WGS84

Collars of the holes

Survey

Downhole survey

Results

Results for a selection of elements including


gold, silver, base metals and pathfinder
elements

Geology

Summary of the geology to 4 basic units


(laterite, breccia, intrusive, and volcanic rocks)

Other auxiliary tables such as those of composites were generated and provide information
within the database.
The database contains information of 38 holes with depths between 600.45m and 52.73m to an
average depth of 396.1m. The holes are generally oriented NW-SE and have a variety of angles
(Figure 60).

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Figure 60. Location of the Drill Holes

14.4 Making of the Geological Model


The mineral resource estimate is based on a generalized geological model consisting of gold
grade shells or wireframes (Figures 61-64). The grade shells were extrapolated 50 metres beyond
each hole. Dr. Galkine`s conclusion about the almost non-existent displacement of the units due
to the tectonics, makes this extension reasonable.

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Figure 61. Mineral Envelope Around the Drill Holes

The sections are irregularly spaced with distances ranging from 40m to 110m. This is due to the
difficulties in locating proper platform sites in the steep terrain of the project. All this
information was transferred to the block model with dimensions given above designed to model
the different parameters and/or attributes required for the estimation process (ore types, densities,
laws and variances).

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Figure 62. Grade Distribution for Gold Inside the Mineral Envelope

Figure 63. Perpendicular Mineralized Envelope Around the Hole Drill Holes

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Figure 64. Longitudinal Mineralized Envelope Around the Holes

14.5 Statistics
A first assessment of the behaviour of the populations under study was performed based on
samples taken from the drill core. Only the results from the elaboration of the gold values are
included here. This study was conducted for the item Au and then the measures of central
tendency and shape to the data displayed for that item. To determine a real statistical behaviour,
the samples were cut for this evaluation at sample values below 0.1 g/t Au.

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Univariate Statistics
--------------------Data Description: Au en las muestras
Minimum Cutoff Value
Maximum Cutoff Value
Number of Samples <=0
Total Number of Samples Used

0.100000
308.300038
250
4331

Minimum Histogram Value


Maximum Histogram Value
Number of Class
Class Interval

0.100000
308.300038
100
3.082000

Minimum Population Data point


Maximum Population Data point
Total Population

0.000000
308.299988
9829

Mean
Median
Geometric Mean
Natural LOG Mean
Standard Deviation
Variance
Log Variance
Coefficient of Variation
Moment 1 about Arithmetic Mean
Moment 2 about Arithmetic Mean
Moment 3 about Arithmetic Mean
Moment 4 about Arithmetic Mean
Moment Coefficient of Skewness
Moment Coefficient of Kurtosis

Ungrouped Data
Grouped Data
0.717605
1.966919
N/A
1.688686
0.251440
1.718678
-1.380552
0.541556
5.426032
5.307395
29.441825
28.168443
1.101450
0.085358
7.561303
2.698329
0.000000
0.000000
29.441825
28.168443
7081.588601
6870.986614
2088654.386884 2012712.485799
44.328557
45.959451
2409.556542
2536.623693

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A detail of the graphical view of the behaviour of this element is shown in the following
histogram (Figure 65).

Figure 65. Histogram of the Gold Distribution

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14.6 Composite Statistical Analysis


Due to the need to work with samples of regularized lengths for analysis, sample lengths are
generated using constant sampling intervals of 1.5m in length, and grades for a suite of elements
calculated. The average length of the samples observed by the Author was 1.49m.
14.6.1 Outliers
Samples were considered statistical outliers if they exceed 98% of the cumulative frequency.
Outliers were treated after the composites were calculated. The cut-off values are:
For Au = 30.0 g/t
For Ag = 42 ppm
Estadstica
para los compsitos de Au
For
Cu = 3105 ppm
Data Description:
Minimum Cutoff Value
Maximum Cutoff Value
Number of Samples <=0
Total Number of Samples Used

0.100000
192.493382
261
3507

Minimum Histogram Value


Maximum Histogram Value
Number of Class
Class Interval

0.100000
192.493382
100
1.923934

Minimum Population Data point


Maximum Population Data point
Total Population

0.000000
192.493332
9819

Mean
Median
Geometric Mean
Natural LOG Mean
Standard Deviation
Variance
Log Variance
Coefficient of Variation
Moment 1 about Arithmetic Mean
Moment 2 about Arithmetic Mean
Moment 3 about Arithmetic Mean
Moment 4 about Arithmetic Mean
Moment Coefficient of Skewness
Moment Coefficient of Kurtosis

Ungrouped Data
Grouped Data
0.817985
1.462444
N/A
1.125728
0.332657
1.167160
-1.100644
0.154574
4.155771
4.065285
17.270432
16.526545
1.035739
0.167258
5.080496
2.779790
0.000000
0.000000
17.270432
16.526545
2250.129462
2185.932389
396409.525486
382901.089362
31.351095
32.535960
1329.038901
1401.917523

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Figure 66. Histograms for the Au Composites

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As in the samples, the graph show an asymmetric distribution well marked, with a tail towards
higher values which shows that these are the least frequently to appear on the site.

14.7 Block Model Construction


From the information of the mineral resource modeling above, the Company created a block
model composed of 52 rows of each 25m (in the direction of the Y), 25m columns 120 each (in
the direction of X), and 100 levels 10m each (vertical), thus having a cubed space that
accommodates any interpretation or projection in the deposit. The coordinates for the lower left
are UTM E 1127780, UTM N 1305540, and a maximum elevation of 2800 m. Each block has a
nominal solid value of 0.0001% for calculation purposes.
Each block was modeled using the rock type, rock density, and grades for Au, Ag and Cu.

14.8 Structural Analysis


Using the composite grades for each block, an omnidirectional variogram was estimated. All the
data fit reasonably well to the spherical model with three structures, a nugget effect, and two
spherical structures, leaving the following equations:
Gold
Spherical +0.10 = 0.04 (3.55) Spherical +0.14 (26.05)
Silver
Spherical +6.13 = 0.74 (3.88) +9.79 Spherical (42.34)
Copper
= 14000 +101500 Spherical (6.87) Spherical +118500 (42.34)

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Figure 67. Semivariogram for Gold Composites

Figure 68. Semivariogram for Silver Composites

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14.9 Methods of Interpolation


The Ordinary Kriging (OK) method was selected by the Author and the Calvista geologists as
the most appropriate interpolation method to interpolate the laws in the block model within the
grade shells (or wireframes) for the style of mineralization observed at Calvistas Callejn
Blanco and Buenavista prospects.

14.10 Cross Validation


The predictability of the estimation was calculated via the cross validation of the composites
(Figure 69). This presents a correlation coefficient of 0.64 between the value of the composites
and the estimated value for gold, 0.74 for silver and 0.78 for Copper, indicating a satisfactory
level of predictability of laws for the assessment plan designed.

Figure 69. Scatter Plot for Cross-Validation Between Au Composites and the Estimate

14.11 Resource Estimation


Once the block model of the deposit was established, with the grades and densities loaded into
the model, the inferred mineral resource was estimated as follows:

The volume of the block was determined using the volumetric tool from GEMCOM and
the method of needles with a regular grid, and an integration level of 6 (36 needles per
cell of 25 x 25 m).
The densities and grades were used for the estimation.

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Table 10 shows the results of the estimation for the California project, including Inferred Mineral
Resource estimations for both the Callejon Blanco and Buenavista prospects.
Table 10. Inferred Mineral Resources For The Calvista Project

Callejon Blanco Prospect


Volume Density Tonnes
Cut-off
Au (g/t) Ag (g/t)
(m3 *1000) (g/cm3 ) (t*1000)
> 2.5
868
2.4
2,082
4.14
22.87
2
1,110
2.4
2,663
3.71
20.21
1.5
1,764
2.4
4,234
2.98
16.56
1
2,999
2.4
7,197
2.25
12.6
0.5
6,927
2.4
16,626
1.37
8.01
Buenavista Prospect
Volume Density Tonnes
Cut-off
Au (g/t) Ag (g/t)
(m3 *1000) (g/cm3 ) (t*1000)
> 2.5
96
2.4
231
4.14
22.87
2
123
2.4
296
3.71
20.21
1.5
196
2.4
470
2.98
16.56
1
333
2.4
800
2.25
12.6
0.5
770
2.4
1,847
1.37
8.01

Au, oz
244,386
280,115
357,661
459,079
645,716

Au, oz
27,154
31,124
39,740
51,009
71,746

Total California Project (Callejon Blanco and Buenavista Prospects)


Volume Density Tonnes
Cut-off
Au (g/t) Ag (g/t)
Au, oz
(m3 *1000) (g/cm3 ) (t*1000)
> 2.5
964
2.4
2,314
4.14
22.87 271,540
2
1,233
2.4
2,959
3.71
20.21 311,239
1.5
1,960
2.4
4,704
2.98
16.56 397,401
1
3,332
2.4
7,997
2.25
12.6 510,087
0.5
7,697
2.4
18,473
1.37
8.01 717,462
Total
33,063
2.4
79,351
0.49
3.33 1,102,289

Ag, oz
1,350,028
1,525,910
1,987,540
2,570,840
3,775,318

Ag, oz
150,003
169,546
220,838
285,649
419,480

Ag, oz
1,500,031
1,695,455
2,208,378
2,856,489
4,194,798
7,491,064

* These mineral resource estimates were prepared in accordance with the CIM Standards on Mineral Resources
and Mineral Reserves, Definitions and Guidelines adopted by CIM council on August 20 th, 2000, using classical
and geoestatistical methods. There are no known environmental, permitting, legal, taxation, political, or other
relevant issues that would materially affect these estimates. Highlighted in red is the Authors best estimate for a
cut-off grade.

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Figure 70 also shows the gold distribution for the California Project.

FIGURE LEGEND
Intercepts > 25 g/t Au
Intercepts 2 25 g/t Au
Intercepts 1.5 2 g/t Au
Intercepts 1 1.5 g/t Au
Intercepts .5 1 g/t Au
Intercepts .1 .5 g/t Au
Figure 70. Block Model by Gold Grade

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14.12 Verification of the Model


Analysis of the relationship between grade and tonnage is a strong method to verify the
robustness of the model. Figure 71 shows the relationship between these two parameters.

Figure 71. Grade Versus Tonnage for Gold at the California Project

The method of validation of model laws described above, along with a thorough visual
inspection of the block model with the results of the holes in both sections as in the drawings,
demonstrate to the Author a good confidence in the selected grade estimation.

14.13 Summary of the Mineral Resource Estimation Methodology


In summary, gold grade shells (or wireframes) were constructed by extrapolation of the shells to
a limit of 50 metres beyond each drill hole to constrain the estimation. The processing and
interpretations of the resource estimation were completed by an independent consultant, Eng
Abdiel Diaz Carmona, Ph. D., in collaboration with the Companys Qualified Person, then tested
and independently confirmed by Dr. Galkine.
Block grade estimation was carried by Ordinary Kriging within the wireframes. The specific
densities of the rock types were estimated at 2.4 g/cm3 and all samples were composited into a
constant length of 1.5 metres. The block model cells size used was 25 x 25 x 10 metres,
considered an appropriate volumetric representation for this style of mineralization.

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15.0 Mineral Reserve Estimates


This section is not applicable at this time.

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16.0 Mining Methods


This section is not applicable at this time.

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17.0 Recovery Methods


This section is not applicable at this time.

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18.0 Project Infrastructure


This section is not applicable at this time.

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19.0 Market Studies and Contracts


This section is not applicable at this time.

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20.0 Environmental Studies, Permitting, and Community Impact


This section is not applicable at this time.

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21.0 Capital and Operating Costs


This section is not applicable at this time.

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22.0 Economic Analysis


This section is not applicable at this time.

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23.0 Adjacent Properties


Regionally, the mineralization in the area of Calvistas California Project appears to be controlled
by the northeast striking Cucutilla fault zone. Properties of note that occur along the Cucutilla
structure include Eco Oro Minerals Corp.s (Eco Oro) Angostura Project (formerly Greystar
Resources Ltd.), AUX Canada Acquisition Inc. (AUX) La Bodega Project (formerly Ventana
Gold Corp.), and Galway Resources Ltd.s (Galway) California Project.

23.1 Eco Oro Minerals Corp. Angostura Project


The Angostura Project is located approximately 1.5 km along strike to the northeast of Calvistas
northernmost mining title. Table 11 lists the Angostura Project resources published by Eco Oro
Minerals Corp. (Eco Oro) based on 302,834 m of drilling completed on the property through to
January 2010, and 1,768 muck samples from exploration tunnels. The open pit and underground
resources were reported using an incremental cut-off grade, where each block in the model is
economically evaluated using the gold and silver prices, metallurgical model and processing
costs. The blocks with positive revenue are considered a mineral reserve. Eco Oro used a price of
US$850/oz for gold and US$12/oz for silver.
Table 11. Angostura Resources

Au
(oz)

Ag
(oz)

3
6
6
5

1,387,000
2,633,000
4,921,000
8,942,000

11,308,000
23,536,000
24,753,000
59,597,000

0.44
0.84
1.43
1.07

3
6
6
6

88,000
149,000
666,000
903,000

555,000
1,111,000
2,996,000
4,662,000

UNDERGROUND RESOURCE
Measured & Indicated
Sulphides

6,044 4.28

19

831,000

3,785,000

Inferred
Sulphides

3,762 3.61

16

437,000

1,992,000

OPEN PIT RESOURCE


Measured & Indicated
Oxides
Transition
Sulphides
Total
Inferred
Oxides
Transition
Sulphides
Total

Tonnes
(000s)

Au Ag
(g/t) (g/t)

105,757
124,761
128,045
358,653

0.41
0.66
1.20
0.78

6,306
5,523
14,519
26,348

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In 2009, Eco Oro completed a pre-feasibility study which envisioned the optimum processing
route to be a combination of heap leach and flotation treatment. The initial start-up considers the
processing of oxide, transitional and low sulphide material by heap leaching at a rate of 70,000
tonnes per day (tpd) using a conventional valley-fill heap leach operation. From year 5, the
pre-feasibility study envisioned processing 5,200 tpd of high sulphide mineralization and the
production of a gold/silver-rich sulphide concentrate by flotation (Greig et al., 2009). The
Author has not been able to verify this report and this information is not necessarily
indicative of the mineralization of the Calvista project.
Source: (www.eco-oro.com)

23.2 AUX Canada Acquisition Inc. La Bodega Project


AUXs La Bodega property is contiguous with the northernmost California Project mining titles
to the northeast and north of License 14031. The La Bodega Project comprises three properties:
the La Bodega property, which includes the La Suiza and La Italia properties, and the Coloro and
El Cuatro properties. Three zones of mineralization have been identified to date, namely, the La
Bodega zone, the La Mascota zone, and the Las Mercedes zone.
The La Bodega zone is a porphyry style, near-surface deposit, believed to be the extension of
Eco Oro Minerals Corporations Angostura zone (OPrey, 2008b). Along strike 350 m to the
southwest, the larger and higher grade La Mascota zone is an epithermal deposit that dips 65 to
85 to the northwest. It has been defined along a strike length of 800 m and to a depth of up to
400 m down-dip, with estimated true composite widths of 10 m to 50 m. Drill intercepts at La
Mascota include 7.04 g/t Au over 47 m in hole LB-004, 8.26 g/t Au over 27.52 m in hole LB006, and 17.44 g/t Au across 27.4 m in hole LB-036 (OPrey, 2008b). The La Mascota zone
remains open to the southwest, at depth and to the northeast, and is believed to extend to the
southwest onto the Coloro and El Cuatro properties
Source: (www.ventanagold.com).
On November 8th, 2010 AUX published the results of a scoping study and an initial resource
estimate. Table 15-2 lists the La Bodega and La Mascota zone resource estimate published by
Ventana based on the drilling completed up to September 2010. The resources were estimated
using cut-off grades of 1.8 g/t Au and 2.0 g/t Au for large and small stopes, respectively (Table
12).
Table 12. La Bodega and La Mascota Resources

Zone
Inferred Resrouces
La Bodega
La Mascota
La Mascota SW Ext.
Footwall Patches

TOTAL

Tonnes
(000)

Au
(g/t)

Ag
(g/t)

Cu
(%)

Au
(M oz)

Ag
(Moz)

Cu
(M oz)

4,672
18,671
3,806
646
27,795

4.1
4.0
3.2
3.1
3.9

10.6
21.6
36.2
10.3
21.5

0.10
0.14
0.17
0.05
0.14

0.6
2.4
0.4
0.1
3.5

1.6
13.0
4.4
0.2
19.2

10.0
59.3
14.6
0.7
84.6

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The scoping study envisioned an underground operation employing sublevel stopping to produce
7,500 tpd. During the first six years of production, the mine is expected to produce an average of
301,000 ounces of gold, 1.4 million ounces of silver, and 6.9 million pounds of copper annually.
Over the estimated 14 year mine life, the annual production is expected to average 220,000
ounces of gold, 1.2 million ounces of silver, and 5.4 million pounds of copper annually.
AUX recently announced that it is undertaking a 3.9 km long exploration decline to provide
access to the La Mascota zone.
Preliminary sampling of the Las Mercedes zone, situated 500 m south of the La Bodega zone has
returned significant values. Table 13 lists the values achieved in channel samples taken from
various cross-cuts and outcrops along the zone.
Table 13. Las Mercedes Zone Channel Sampling

Sample Lenth
(m)

Average Grade
(Au g/t)

Estiamted True
Thickness (m)

Resbaladero x-cut

9.0

8.31

9.0

Cruzada x-cut

27.0

4.59

21.0

Principal x-cut

24.0

3.31

20.0

La Virgen o/c

39.0

1.83

28.0

AUX also planned to drill test a combined Induced Polarization (IP) and soil anomaly occurring
parallel to and south of the Las Mercedes zone which they refer to as the Asseradero target. The
Author has not been able to verify this report and this information is not necessarily
indicative of the mineralization of the Calvista project.

23.3 Galway Resources Ltd. California Project


Galway controls ground located along strike to the southwest of AUXs La Mascota zone.
Galway has concentrated its drilling efforts on three mineralized zones, namely, the NE Zone, the
Pie de Gallo Zone, and the San Celestino zone.
Source: (www.galwayresources.com).
NE ZONE
The NE Zone of Galway's California property is located along its eastern boundary with AUX.
Highlights from reported drill results from this area include:

11.0 m of 3.3 g/t Au from GWY-12

1.5 m of 109.5 g/t Au from GWY-19

85.5 m of 1.1 g/t Au , including 1.5 m of 21.4 g/t Au from GWY-30

148.5 m of .65 g/t Au from GWY-32


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121.5 m of 2.7 g/t Au, including 79.5 m of 3.8 g/t Au, including 1.5 m of 151.5 g/t Au from
GWY-37
44.0 m of 1.1 g/t Au and 18.6 g/t Ag, including 10.3 m of 2.1 g/t Au and 28.8 g/t Ag from
GWY-47
50.5 m of 1.4 g/t Au and 18.3 g/t Ag, including 12.0 m of 3.0 g/t Au and 40.3 g/t Ag from
GWY-51
PIE DE GALLO ZONE
The Pie de Gallo Zone is a 300 m long open pit, which was mined in ancient times by the
Spaniards and explored by Anaconda Mining Company in 1946-1947. Highlights from drill
results reported from the Pie de Gallo zone include:

4.5 m of 22.4 g/t Au, including 3.0 m of 32.8 g/t Au from GWY-01

31.0 m of 2.9 g/t Au, including 1.5 m of 29.1 g/t Au from GWY-02

10.5 m of 3.6 g/t Au from GWY-03

3.0 m of 30.0 g/t Au from GWY-07

22.5 m of 2.0 g/t Au from GWY-09

89.0 m of 3.2 g/t Au, including 9.0 m of 23.1 g/t Au, including 3.0 m of 50.0 g/t Au from
GWY-10

34.5 of 4.1 g/t Au, including 3.0 m of 37.9 g/t Au from GWY-42

6.0 m of 39.5 g/t Au, including 2.0 m of 118.5 g/t Au from GWY-43

15.5 m of 3.8 g/t Au and 28.9 g/t Ag, including 1.5 m of 15.0 g/t Au and 3.0 m of 132.5 g/t
Ag within an area of stockwork mineralization from GWY-46
SAN CELESTINO ZONE
The San Celestino Zone (previously known as the El Dorado Zone) is located one kilometre
along strike to the southwest of the NE Zone. Highlights of reported drill results from San
Celestino include the following:

11.0 m of 9.9 g/t Au, including 3.3 m of 30.4 g/t Au from GWY-22

7.2 m of 7.6 g/t Au from GWY-23

1.5 m of 47.1 g/t Au from GWY-25

25.0 m of 3.6 g/t Au, including 16.0 m of 5.4 g/t Au, including 1.5 m of 27.4 g/t Au from
GWY-26

40.5 m of 1.5 g/t Au from GWY-29

As of the effective date of this report, no mineral resource estimates for the Galways California
property have been published.
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Other adjoining properties are held by Colombian nationals.


The Author has been unable to verify the information relating to the Angostura, La Bodega, or
Galway properties. The Author has not been able to verify this report and this information
is not necessarily indicative of the mineralization of the Calvista project.

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24.0 Other Relevant Data and Information


24.1 Security Considerations
Foreign Affairs and International Trade Canada advises against all travel to certain departments
in Colombia located along the border with Venezuela, including Santander. The presence of
armed drug traffickers, guerilla, and paramilitary organizations poses a major risk to travellers.
These groups continue to perpetrate attacks, extortion, kidnappings, car bombings, and damage
to infrastructure in these areas (www.voyage.gc.ca/countries_pays/report_rapport). The current
situation is much more stable. The Author did not experience any security issues during the
property visit.

24.2 Pramo Ecosystem


The Corporacion de Defensa de la Meseta de Bucaramanga (CDMB), the local environmental
authority of the Department of Santander, Colombia, by letters dated April 24th and May 7th,
2012, certified that based on the cartography adopted by the Ministry of the Environment by
Resolution 937 of May 25th, 2011, and the Atlas de Paramos de Colombia issued by the
Colombian Alexander Von Humboldt Biological Research Institute, all eleven mining titles
owned by Calvista Colombia, are not within areas identified as Paramo ecosystems (Fig. 72).
Paramo is an ecosystem generally above 3,200 metres elevation consisting of glacier-formed
valleys and plains with lakes, peat bogs, and wet and dry grasslands intermingled with shrub
lands and forest patches. Law 1382 of 2010 which amended the existing Mining Code excludes
and prohibits mining and exploration activities in areas of the Paramo ecosystem.

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Figure 72. Location of the Paramo Area Compared to Calvistas California Gold Project

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25.0 Interpretation and Conclusions


The California Project consists of eleven mining titles grouped into three prospects within
the rapidly developing California mining district of Colombia. The mining titles are
underlain by prospective lithologies of the Santander Massif in proximity to the northeast
striking Rio La Baja fault zone, which appears to be the controlling structure to
mineralization in the area. Artisanal mining is currently not taking place on any of
Calvistas mining titles. Prior to Calvistas involvement, the subject mining titles had not
had the benefit of modern exploration techniques and only limited diamond drilling had
taken place locally.
Recent exploration in the California district has defined gold mineralized zones along the
Rio La Baja structure, including Eco Oro Minerals Corp.s multi-million ounce
Angostura gold deposit, and AUXs La Mascota and La Bodega gold desposits where an
underground exploration program is currently underway.
The California project is located along the La Baja Fault with an East-West orientation
separating metamorphic rocks to the south and felsic intrusives to the North. The main
targets appear to be hosted by a felsic unit composed of porphyritic tonalities to granites,
fine grained granites to microdiorite, and very minor dykes of andesite and basalts.
Calvista geologists have identified three types of mineralization. A disseminated type
related to the intrusive, a vein type related to the stockwork of the intrusive, and a third
type related to a hydrothermal breccia located at the surface.
Work to date by Calvista has been concentrated on the Callejn Blanco and Buenavista
prospects and includes geological mapping on portions of the northern blocks and
diamond drilling. As of the effective date of this report, 38 holes have been completed
for a total of 15,054.43 metres. Limited geological mapping has been completed on the
southern blocks. Calvista also completed a detailed airborne, combined magnetic and
radiometric survey over all of its holdings in the California area. The interpretation of the
survey have confirmed known targets and identified the extension of the mineralization
into other licenses of the Client.
The company is completing the re-logging and re-sampling of all accessible adits in their
licenses and a soil sampling program combined with ground geophysics. Partial results
from this program are included in this Technical Report.
The projection of the mineralized corridor southwest from Angostura and through La
Mascota appears to have been intersected in diamond drilling by Calvista on its Callejn
Blanco prospect. Calvista controls a strike length of approximately 600 m along the
prospective structure. Elsewhere, Calvistas Buenavista prospect is located along strike of
AUXs Las Mercedes and Asseradero zones where preliminary sampling has returned
encouraging results.
Calvista has developed and implemented quality assurance/quality control (QA&QC)

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protocols that meet and exceed current industry best practices. Calvistas protocol during
the 2011 and 2012 drilling program included the insertion of blanks and both core and
reject duplicates as well as a certified standards into the sample stream. Samples with
assay results greater than 10 g/t Au were re-assayed by metallic screen analysis. Calvista
has submitted a suite of samples of pulp duplicates to an alternate laboratory.
Although the drilling to date by Calvista is preliminary, the results have identified a
prospective geological setting including permissive structure, alteration, and
mineralization. The assay results received to date have been sufficiently encouraging to
warrant additional exploration. The modeling of the current resource estimates indicates
the presence of 7,997,000 tonnes at 2.25 g/t of Au (approximately 510,000 ounces of
gold), and 12.60 g/t of Ag (approximately 2,856,489 ounces of silver) using a cut-off of 1
g/t gold and a dry density of 2.4 g/cm3.
The exploration information presented in this Technical Report is subject to a number of
risks and uncertainties that could affect the reliability or confidence in the technical
information, specifically in determination of the inferred resource estimation. Such risks
include geological interpretations, statistical and structural analysis, densities, mineral
interpolation, and the resource estimation methodology. The estimate of mineral
resources may be materially affected by environmental, permitting, legal, title, taxation,
sociopolitical, marketing, or other relevant issues.

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26.0 Recommendations
The Author is of the opinion that Calvistas California Project covers highly prospective
ground and merits continued significant gold exploration, including additional
exploration diamond drilling.
A Phase II drilling program started in January 2012, and due for completion as of the date
of this report, and includes the following aspects:

Geological mapping, prospecting, and sampling on all licenses;

Logging and sampling of all adits within the client licenses;

Interpretation of a licence wide soil sampling program;

An approximate 5,000 metre diamond drilling program with oriented core to chiefly
increase the inferred resources of the Client; and

Consider opportunities to acquire additional ground along the prospective corridor to


cover airborne geophysical anomalies, if any.

The Author recommends that the Client should implement a Phase III program consisting
of the following:

A mineral resource (NI 43-101) update including the results of the Phase II drill
program;

At least 10,000 metres of diamond drilling at the Callejn Blanco and Buenavista
prospects;

Follow-up geological mapping, prospecting, and sampling on all licenses;

A number of deeper down-dip drill holes at the Callejn Blanco prospect targeting
high-grade mineralization observed at the bottom of a number Phase I drill holes,
including hole DDH-21;

A number of along strike drill holes to define the extent of the mineralized zones
observed at both Callejn Blanco and Buenavista prospects;

Aim to increase the Phase I Inferred Mineral Resources as defined in Section 14.11 of
this Technical Report; and

Include in-fill drill holes to possibly to expand upon the defined Inferred Mineral
Resources and aim to increase the category of some of those Inferred Mineral
Resources to an Indicated Mineral Resources category;

Consider opportunities to acquire additional ground along the prospective corridor to


cover airborne geophysical anomalies, if any.

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Table 14 shows the estimated cost of a Phase III exploration program being in the order
of C$5 million.
Table 14. Estimate Budget for Phase III Program

Geology Department
Lineament analysis
Drilling (Drilling at $200/m)
Metallurgical Testing
Geological Equipment and software
Training.
Consultants Other than 43-101 Work.
43-101 Consulting Work
Production Department
Calvista Toronto Costs
Environment Department
Industrial Security Department
Kitchen & Camp
Bucaramanaga Office

July
August September October November December
$600,088 $641,296 $595,144 $125,898 $597,900
$92,032
$10,000
$5,000
$500,000 $500,000 $500,000
$500,000
$40,914
$10,000
$10,000
$2,000
$2,000
$2,000
$4,000
2000
$10,000
$96,088 $88,382
$95,144
$91,898
$92,900
$90,032
$155,930 $159,230 $474,603 $155,930 $155,930 $161,430
$29,234 $29,696
$36,140
$35,858
$29,337
$37,209
$5,395
$5,262
$5,498
$5,337
$5,306
$5,445
$11,168 $11,144
$11,144
$11,311
$11,177
$11,872
$88,334 $88,226 $142,378
$83,276
$84,075 $165,441

Total

$890,149 $934,855 $1,264,907

$417,609

$883,725

Total
$2,652,359
$15,000
$2,000,000
$40,914
$20,000
$6,000
$6,000
$10,000
$554,445
$1,263,053
$197,473
$32,243
$67,817
$651,730

$473,430 $4,864,674

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27.0 References
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Certificate of Qualified Person


VADIM GALKINE
I, Vadim Galkine, as author of this report entitled Technical Report on the California
Gold Project, California, Santander Department, Republic of Colombia (the Technical
Report) prepared for Calvista Gold Corporation and dated May 30th, 2012 do hereby
certify that:
1. I am the sole proprietor of TechnoTectonics, a geological consulting firm located
at 65 Queen St West, Suite 1105, Toronto, Ontario, Canada, M5H 2M5.
2. I am a Professional Geologist in the Province of Ontario and a member of the
Association of Professional Geoscientists of Ontario (1828).
3. I am a graduate of the Lomonosov Moscow State University in Russia (1982),
with an Hon. BSc in Earth Science/Geology. I am a Ph.D., having received the
degree in 1988 in Geology from Lomonosov Moscow State University. I also
earned a Ph.D. degree in Geotectonics from the Lomonosov Moscow State
University in 1997.
4. I have practiced my profession as a Geologist continuously for 30 years. As a
professional geologist with thirty years of experience in the mining industry, I
have extensive geological, geochemical, and mining experience, managerial
skills, and a solid background in research techniques, and training of technical
personnel. I have been involved in various projects world-wide (specifically in
Canada, Iran, Russia, Tajikistan, Uzbekistan, Kirghizia, and Central and South
America). These projects included regional reconnaissance, local mapping,
diamond drilling programs, open pit and underground mapping and sampling,
geochemical sampling and interpretation, and several exploration techniques
pertaining to the search for gold and other precious metals, diamonds, PGM,
nickel, base metals, industrial minerals, oil and gas, and other magmatic,
hydrothermal, porphyritic, VMS and SEDEX ore deposits.
5. I have read the definition of qualified person set out in National Instrument 43101 (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.
6. I visited Calvistas California Project for nine days between November 27th, 2011
and December 5th, 2011.
7. I am responsible for the preparation of the entire Technical Report.
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8. I am independent of Calvista applying the test set out in Section 1.4 of NI 43-101.
9. I have had no prior involvement with the property that is the subject of the
Technical Report.
10. I have read NI 43-101, and the Technical Report has been prepared in compliance
with NI 43-101 and Form 43-101F1.
11. 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 30th day of May, 2012
(Signed and Sealed) Vadim Galkine
Vadim Galkine
Ph. D., P. Geo.

134