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EVALUATION OF THE STRUCTURAL GEOLOGY

AND GOLD MINERALISATION


in the
SAN SIMON PROJECT AREA
Itenez Province
Beni Department, Bolivia
for
Eaglecrest Explorations Ltd.
by
CME & Company
June 23, 2005

John A. McCurry, Ph.D.

Latitude 13º36’S
Longitude 62º05’W
SUMMARY

The San Simon Property is located in northeastern Bolivia in the Canton Mategua, Province of
Itenez, Department of Beni. The Property is approximately 340 km north of the city of Santa Cruz
de la Sierra. The 299.84 km2 Property consists of 33 contiguous concessions. The Property is
centred at approximately 13°36'S latitude and 62°05'W longitude.

A study of reports, data, surface exposure, pits and drill core from the San Simon Project area in
was undertaken over 12 days in May 2005 to provide a structural interpretation of the geology, an
understanding of the structural controls on mineralisation and guidelines for exploration and
development of targets in the Dona Amelia Zone. The principal mineralised structure examined
during the study was the Trinidad-Manganeso Thrust-Reverse Fault. The mineralisation is hosted
in the Bonanza Formation, a sequence of arenaceous, rudaceous and quartzitic metasediments in the
Mid-Proterozoic Serrania San Simon Group. These were deformed during the San Ignacio Orogeny
(1400-1280 Ma) undergoing greenschist facies metamorphism. Six phases of deformation are
represented with D3 exerting dominant control on the structural configuration of the area.

The structure of the San Simon study area east of the D4 / D5 dextral strike-slip Canadon Verde
Shear Zone conforms to that of the short limb of a major north verging fold pair. A major antiform,
the Trinidad-Manganeso Antiform, is present in the south of the study area. This trends east-
southeast to the Paititi area where its hinge is excised by the north verging Gurayos Thrust. The
major synformal hinge of the fold pair is excised to the north along the San Antonio Boundary
Thrust. Bedding facing direction between the two fold hinges is principally to the north although it
is affected locally by major-moderate scale folding. The Trinidad-Manganeso Antiform is the
dominant major fold structure present and it has a controlling influence on the mineralisation of the
area. To the south mineralisation is localised associated with north verging thrust structures. To the
north it is principally bedding controlled associated with fold related dilation. The most significant
mineralisation is along the Trinidad-Manganeso Thrust-Reverse Fault, which has formed in the
hinge zone of the antiform. The principal displacement direction on this and other D3 thrusts in the
area is up to the north.

The Trinidad-Manganeso Thrust-Reverse Fault forms a zone of anastomosing shears up to 300 m


wide. Drill sections reveal intercalation of shear bound arenite / rudite and quartzite tectonic units
in a complex sequence of imbricate shears that nucleate on a strongly mineralised sole thrust. The
quartzite units may represent the contact with the underlying El Colorado Quartzite Formation as it
becomes increasingly exposed eastwards in the core of the west plunging Trinidad-Manganeso
Antiform. There have been a minimum of three phases of movement along the Trinidad-
Manganeso Thrust-Reverse Fault: an early sub-vertical movement followed by two oblique sinistral
movements. A conjugate set of strike-slip faults formed about a north-northwest - south-southeast
σ1 stress axis following the first thrust movement. These have displaced the Trinidad-Manganeso
Thrust-Reverse Fault by up to 900 m.

The most extensive mineralisation is hosted by the sole thrust of the Trinidad-Manganeso Thrust-
Reverse Fault. A quartz vein up to 6 m thick, but more typically 1-2 m, was emplaced along the
thrust after the first phase of movement along it. Quartz mineralisation shoots developed along
associated imbricate structures but are thinner and more confined than along the sole. Strike-slip
faulting displaced the Trinidad-Manganeso Thrust-Reverse Fault and its related quartz veining and

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the strike-slip planes infilled with quartz veins up to 2 m thick. Reactivation of both the thrust and
strike-slip faults under a north-northeast - south-southeast σ1 stress axis resulted in oblique sinistral
movement along the thrust and largely dextral reactivation of the strike-slip faults. This resulted in
severe brecciation of the quartz veins. Associated with this movement is gold bearing hematite-
quartz-arsenopyrite mineralisation which invades the brecciation planes in the quartz and shear
fractures in the adjacent fault gouge and phyllic altered (sericitised) metasediments. Gold
mineralisation shoots are found along associated imbricate shears and strike-slip faults but space
constraints concentrate the most economic mineralisation along or adjacent to the sole thrust,
particularly where steps in the structure have resulted in local dilation. A prominent third phase of
oblique sinistral D3 movement along the Trinidad-Manganeso Thrust-Reverse Fault has displaced
the earlier quartz and hematite mineralisation features and their related hydrothermal alteration zone
to constrain the age of gold mineralisation within D3.

This study provides a framework through which to analyse and refine the detailed local structural
interpretation and its controls on economic ore shoots in the Dona Amelia Zone and beyond.
Careful field examination is needed to constrain the local orientation of major structure and
accurately define the key dilation zone targets that exist both along the Trinidad-Manganeso Thrust-
Reverse Fault and in potential new targets along related imbricate and strike-slip structures.

Particular attention needs to be paid to the 900 m displacement of the Trinidad-Manganeso


Antiform, and by implication the Trinidad-Manganeso Thrust-Reverse Fault, by strike-slip faulting
in the Las Rosas area and the apparent continuation of the Trinidad-Manganeso Thrust-Reverse
Fault towards Paititi. Both have the potential to significantly increase the defined gold resource.
Equally the relationship of two major lineaments in the Central Valley area to the overall structure
needs to be assessed to determine their potential for delivering significant new targets away from
the Trinidad-Manganeso Thrust-Reverse Fault.

iii
TABLE OF CONTENTS
page
SUMMARY ............................................................................................................................... ii
1.0 INTRODUCTION AND TERMS OF REFERENCE......................................................... 1
2.0 DISCLAIMER .................................................................................................................... 2
3.0 PROPERTY DESCRIPTION AND LOCATION .............................................................. 2
4.0 GEOLOGICAL SETTING ................................................................................................. 4
4.1 REGIONAL GEOLOGY .............................................................................................................. 4
4.2 STRUCTURAL SETTING OF THE SAN SIMON PROJECT AREA........................................ 9
5.0 STRUCTURAL STUDY .................................................................................................. 10
5.1 STRUCTURAL GEOLOGY ...................................................................................................... 10
5.1.1 West of the Canadon Verde Shear ...................................................................................... 12
5.1.2 East of the Canadon Verde Shear Zone .............................................................................. 12
5.2 MINERALISATION................................................................................................................... 19
5.2.1 The Trinidad-Manganeso Antiform and Thrust-Reverse Fault........................................... 19
5.2.2 Mineralisation Along the Trinidad-Manganeso Thrust-Reverse Fault ............................... 29
5.2.3 Mineralisation Sequence and Controls................................................................................ 32
6.0 CONCLUSIONS............................................................................................................... 40
7.0 RECOMMENDATIONS .................................................................................................. 41
8.0 REFERENCES.................................................................................................................. 43
9.0 CERTIFICATE ................................................................................................................. 44

LIST OF FIGURES
page
1. Location Map (1:8,835,000).............................................................................................. 3
2. Tectonic Setting (1:10,000,000)........................................................................................ 5
3. Regional Geology of the Northern Precambrian Shield of NE Bolivia (1:1,000,000) ..... 6
4. The Geology of San Simon Plateau and Location of the San Simon Property and Dona
Amelia Zone (1:250,000) ............................................................................................ 11
5. Major Structures East of the Canadon Verde Shear Zone (1:100,000)........................... 14
6. Diagrammatic Sections Through the San Simon Plateau Illustrating Major Structures
West and East of the Las Brisas Fault (schematic) ..................................................... 15
7. Structural Geology of the Dona Amelia Zone (1:25,000)............................................... 23
8. Vertical Drill Hole Section (595482E) Through the Trinidad-Manganeso Thrust-Reverse
Imbricate Zone at Manganeso (1:4,000) ..................................................................... 24
9. Diagrammatic Section Showing Formation of the Trinidad-Manganeso Antiform and
Thrust-Reverse Fault and Related Mineralization (schematic)................................... 27
10. Diagrammatic Plan View of D3 Fault Formation and Mineralization Along the Trinidad-
Manganeso Thrust-Reverse Fault (schematic)............................................................ 34

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LIST OF PHOTOS
page
Photo 1 Cross-bedded arenite in the Bonanza Formation at Buriti. 8
Photo 2 Minor, downward facing antiform of probable D5 age, defined by hematite-limonite
enriched sandstone layer, plunges gently to the south at Manganeso. 18
Photo 3 Quartzite augen block set in silicified arenite along the Quartzite Shear Lineament
in the Central Valley. 18
Photo 4 Gravel conglomerate showing graded bedding (Ss, grading direction arrowed) and
rotation of linear clasts into S3 fabric. 20
Photo 5 Pebble conglomerate showing rotation of linear clasts into S3 fabric. Pebble clasts
are principally quartz, chert and mudstone (some phyllitic) and they are set in a coarse
sandstone matrix. 20
Photo 6 Bedding foliation developed in cross-bedded litharenites at Paititi. 21
Photo 7 Block of brecciated quartz with associated shear fabric including foliated gouge and
quartz segregation veining. 25
Photo 8 Late D3 Thrust-Reverse Fault displaces both the Main Quartz Vein and the sericite
alteration zone along the Trinidad-Manganeso Thrust Reverse Fault at Las Rosas. 28
Photo 9 Thin quartz vein forming one of a set of sheeted veins dipping at ~60° Æ 215° is
deformed by thrust related to late D3 thrust-reverse faulting. 28
Photo 10 Late D3 quartz filled dilation gashes at Manganeso within sericite alteration zone of
Trinidad-Manganeso Thrust Reverse Fault. 31
Photo 11 The Trinidad-Manganeso Thrust Reverse Fault and Main Quartz Vein at the
principal Trinidad mining pit. 31
Photo 12 D3 shear showing sharp shear contact between relatively undeformed pebble
conglomerate in the hangingwall and foliated / unfoliated fault gouge in the footwall
(TRD-098 55.0-55.4). 36
Photo 13 D3 shear plane associated with a brecciated quartz vein. There is evidence for three
quartz vein events (Q1 oldest, Q3 youngest) and that movement and hematite
mineralisation along the shear plane continued after brecciation and hematite
mineralisation of the main vein Q2 (TRD-077 225.0-225.5). 36
Photo 14 Close up of shear plane and associated hematite mineralisation and sericite
alteration in Figure 12 (TRD-077 225.0-225.2). 37
Photo 15 Brecciated quartz vein with hematite-quartz-arsenopyrite-gold mineralisation along
brecciation planes. Visible gold is circled and is always associated with hematite
(TRD-051 422.3-422.8). 37
Photo 16 Litharenite showing three phases of hematite-quartz-arsenopyrite-gold veining
during brecciation: H-Q1 oldest; H-Q3 youngest. Pale sericite alteration is visible
proximal to the veins. Movement on fractures indicated. (TRD-051 435.7-435.8) 38
Photo 17 Gold panned from crushed debris taken from the sericite alteration zone in the
hangingwall of the Trinidad-Manganeso Thrust-reverse Fault in the Trinidad area. 38
Photo 18 Quartz vein system in fracture zone affected by folding, brecciation and hematite
mineralisation. 39

LIST OF APPENDICES
I. List of Abbreviations and Conversion Factors

v
1.0 INTRODUCTION AND TERMS OF REFERENCE

This report has been prepared by CME & Company (CME) at the request of Eaglecrest
Explorations Ltd (Eaglecrest).

The principal objectives of the study are:


• An improved understanding of the structural setting and sequence affecting the Dona
Amelia Zone and its relationship to the deformation sequence of Pitfield et al (1983);
• Structural evaluation of the gold bearing vein systems with particular emphasis on the
structural controls of mineralization in the Trinidad-Manganeso vein structure; and
• Recommendations for exploration target areas and further geological studies to
increase the resource potential.

To achieve these objectives the following were included in the work undertaken:
• Examination of reports, data, drill core and pit and natural exposure in the field and
discussion with project geologists;
• Reconnaissance mapping and measurement of structural features in the field;
• Rapid logging and examination of structural and mineralisation characteristics in
numerous selected drill holes; and
• Collection and/or photographic documentation of representative and selected
structural features and samples.

This report presents the observations and interpretations of the author. It first describes the
regional geology and the geological and structural setting of the San Simon area in light of
previous studies and new observations. It then details the geological and structural
characteristics of the Dona Amelia Zone and the Trinidad-Manganeso mineralised structure in
particular. The report proposes a sequence to accommodate timing, patterns of deformation
and mineralisation. It concludes with recommendations for areas of focus to accurately assess
the resource and increase its volume potential.

Hilliard (2004) presents an accurately observed structural assessment and reserves estimate of
the Trinidad-Manganeso structure and his work is referred to where interpretation needs
reassessment. It has been felt necessary to include an account of the regional geology in
Section 2.1 that draws on the description from Bruland and Allen based on work by Pitfield et
al (1983) and Litherland et al (1989) and it is amplified by the author where necessary.

To simplify description throughout the report the upland geographical area over which the
San Simon Precambrian metasediments are exposed is referred to as the San Simon Plateau.
The variously named east - west trending valley north of the Trinidad-Manganeso ridge will
be referred to as the Central Valley. The presence of early, major flat-lying nappe structures
over at least part of the area, requiring overturned bedding on one of the limbs, necessitates
the use of antiform and synform rather than anticline and syncline in fold descriptions, except
in reference to the nappes. Although the presence of these nappes is inferred it should be

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noted that the overturned limbs have never been observed. Listric thrust faults that steepen
upwards into reverse orientations will be described as thrust-reverse faults. Major structures
will be given names and abbreviated after first use and compass directions will be given as
abbreviations.

Conversion factors and abbreviations used throughout this report are presented in Appendix I.

2.0 DISCLAIMER

CME has made every effort to ensure that the interpretations, conclusions and
recommendations presented herein are accurate and reliable in accordance with good industry
practice and our own quality management procedures. CME does not however guarantee the
correctness of any such interpretations and shall not be liable or responsible for any loss,
costs, damages or expenses incurred or sustained by anyone resulting from any interpretation
or recommendations made by any of our officers, agents or employees.

In the disclosure of information relating to legal, title and related issues, the author has relied
on information provided by Eaglecrest. The author disclaims responsibility for such
information. The disclosure represents no legal opinion of the author.

3.0 PROPERTY DESCRIPTION AND LOCATION

The San Simon property (the “Property”) is located in northeastern Bolivia in the Canton
Mategua, Province of Itenez, Department of Beni, less than 25 km from the villages of
Remanso and Cafetal on the Itenez Guapore River which marks the border with Brazil
(Figure 1). The Property is approximately 340 km north of the city of Santa Cruz de la Sierra,
which is the main supply and service center for the Amazon region of eastern Bolivia.

The 299.84 km2 Property consists of 33 contiguous concessions. The Property is centred at
approximately 13°36'S latitude and 62°05'W longitude.

Full details of the Property location, history, legal status and the previous work undertaken are
found within Bruland and Allen (2004).

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LEGEND
International boundary
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Highway EAGLECREST EXPLORATIONS LTD.
Major road
Railway LOCATION MAP
River
National capital San Simon Project
Itenez Province, Beni Department, Bolivia
Department capital 0 200 km
Project No: IC72 By: TV
City or town
Scale: 1:8,835,000 Drawn: TV
Figure: 1 Date: June 2005
4.0 GEOLOGICAL SETTING

4.1 REGIONAL GEOLOGY

The rocks of the San Simon Plateau are located within the Precambrian Central Brazilian
Shield area of northeast Bolivia and range from 2000-1300 million years in age (Figure 2).
These rocks form part of the Paragua Craton, which is itself located within the Amazonian
Craton juxtaposed between the Aguapei Mobile Belt to the east and the Sunsas Mobile Belt to
the west. The Amazonian Craton consolidated as a result of the Trans-Amazonian Orogeny
of 2100-1700 Ma. The distribution of the rock assemblage of the Paragua Craton largely
reflects deformation during the San Ignacio Orogeny (1400-1280 Ma). The Paragua Craton
remained stable during the subsequent deformation of the Aguapei and Sunsas Mobile Belts
(1250-950 Ma) (Litherland et al 1989).

The Paragua Craton is composed of a metamorphic sequence of Early-Mid Proterozoic age


(2500-1300 Ma). This sequence has been divided into four principal units that are interpreted
by Litherland et al as a single strato-metamorphic sequence (Lomas Maneches Granulitic
Complex, Chiquitania Gneiss Complex, San Ignacio Schist Supergroup and the Pensamiento
Granitoid Complex) (Figure 3). This sequence is thought to attain a thickness of 10,000
metres.

The oldest unit is the Lomas Maneches Granulitic Complex, which is comprised of granulite
and passes upward into biotite and garnet gneisses with granulite bands.

The Chiquitania Gneiss Complex is a homogenous semi-pelitic sequence of migmatitic biotite


gneiss’s with or without muscovite hornblende and garnet. The contacts with the underlying
Lomas Maneches Granulitic Complex are gradational and the high amphibolite metamorphic
facies of the gneiss sequence lowers to medium grade towards the overlying schist sequence.
A number of lithostratigraphic markers appear to pass from the gneiss into the schist sequence
suggesting that they are in part lithostratigraphic equivalents.

The San Ignacio Schist Supergroup is a low-high grade metamorphosed belt of principally
schistose rocks. Its main rock constituents are gneiss, feldspathic psammites / arenites,
quartzites and pelitic / semi-pelitic rocks. The Supergroup is divided into the Serrania
Martinez Group and the overlying Serrania San Simon Group (the San Simon Schist Belt).

The Serrania Martinez Group is a low-high grade amphibolite facies sequence of gneisses and
quartz-feldspar granofels overlain by psammites and pelites (the latter sometimes confusingly
referred to as the Cerro Azul Metasedimentary Group). The metasedimentary rocks show
evidence of deposition in a shallow water, inter-tidal shelf or stable foreland environment
(these immature, molasse type sediments are most likely deposited either in an alluvial setting
or a deltaic setting marginal to an intracratonic basin).

The Serrania San Simon Group conformably overlies the Serrania Martinez Group. It is a
low-high grade greenschist facies sequence of rudaceous, arenaceous and argillaceous rocks.

4
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TECTONIC SETTING
San Simon Project
Itenez Province, Beni Department, Bolivia
Project No: IC72 By: TV
Scale: 1:10,000,000 Drawn: TV
0 200km
Figure: 2 Date: June 2005
62°W

Ptp

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LEGEND
Pensamiento Granitoid Complex (Pp)
Fault
Tres Picos Granite suite (Ptp) EAGLECREST EXPLORATIONS LTD.
Antiform and synform
Padre Eterno Granite (Ppe) and
San Cristobal Metagranite (Ppc) Property boundary Regional Geology of the
Bella Vista microgranite (Ppb) and Northern Precambrian Shield of
Piso Firme granophyre (Ppg) suites NE Bolivia
Major Metasedimentary and Gneiss Units San Simon Project
Serrania San Simon Metasedimentary Group (Ps) Itenez Province, Beni Department, Bolivia
Serrania Martinez Group (Pz) Project No: IC72 By: TB, JM
Pza - Cerro Azul metasedimentary division Scale: 1:1,000,000 Drawn: TV
- Paquiosal gneiss division (Pzp) 0 20km Figure: 3 Date: June 2005

Pc Chiquitania Gneiss Complex


The group is divided into three distinct metasedimentary formations, which from oldest to
youngest are:

• El Corrito Argillite Formation (300-350 m thickness) – a sequence of shales and


mudstones at the base of the succession is replaced in upward coarsening cycles by
siltstones, sandstones and pebbly units intercalated within the argillaceous material.
The top of the succession has a distinctive volcaniclastic sandstone unit.

• El Colorado Quartzite Formation (1300-1350 m thickness) – this formation overlies


the volcaniclastic material at the top of the El Corrito Argillite Formation and is
defined by the first appearance of quartzite in the succession. The quartzite is present
at the top of cyclical sequences (12-70 m) that are typically pebbly at the base and
grade from greywacke into sub-greywacke / litharenite with the quartzites at the top.
The quartzite content increases upwards.

• Bonanza Formation (1600-1650 m thickness) – this sequence has a sharp basal contact
with the El Colorado Formation. It is dominated by arenaceous deposits of principally
sub-greywacke with ubiquitous thin conglomeratic units at the base of beds and gritty
intercalations common within the units. Other arenaceous deposits in order of
importance include lithic greywacke, sub-litharenite, protoquartzite and lithic arenites.
Shale and siltstone units are present, but are uncommon. Many of the beds display
excellent cross-bedding (Photo 1) and bedding parallel slumps are visible in places.

The depositional palaeoenvironment of the Serrania San Simon Group is interpreted as a


prograding delta adjacent to a foreland area. The succession moves from tidal flat and
prograding delta deposits in the El Corrito and El Colorado Formations into alluvial and
fluvial deposits in the Bonanza Formation with a return to deltaic deposition marked by sub-
litharenite deposits. The common occurrence of intraformational mudstone intraclasts may
suggest periodic subaerial exposure and dessication. Evidence for shallow water subaerial
deposition is supported by the presence of red beds and shoaling conglomerates with
carbonaceous deposits forming in anaerobic conditions in a probable lagoonal environment.

The provenance of the Serrania San Simon Group clasts suggest a gneissic basement with
volcanic successions source although a banded iron formation basin source is more evident in
the Bonanza Formation. Palaeocurrents for the El Corrito and El Colorado Formations
suggest derivation from the northwest while for the Bonanza Formation they indicate
northeasterly derivation.

The Pensamiento Granitoid Complex is a series of foliated syn-kinematic granitoids


(principally monzogranites and syenogranites) emplaced during the San Ignacio Orogeny.
The complex is floored to the south by high grade granulites and gneiss’s and roofed to the
north by low-medium grade schists and gneisses. In the San Simon Plateau area a series of
microdioritic, microsyenodioritic and andesitic sills up to 3 m thick intruding the Bonanza
Formation are related to the youngest intrusive phase of the complex and are either late in the
San Ignacio orogenic cycle or post-tectonic.

7
Photo 1: Cross-bedded arenite in the Bonanza Formation at Buriti. Differentiating cross-
bedding from true bedding requires careful field examination over much of the Bonanza
Formation exposure.
The main deformation affecting the area is the San Ignacio Orogeny of 1400-1280 Ma, which
had two penetrative deformations, and a series of non-penetrative deformations as detailed in
Section 2.2. The Aguapei and Sunsas orogenies (1250-950 Ma) are not thought to have
impacted on the area but the possibility of strain effects resulting from these events should not
be ruled out. The area was also affected by uplift during the Late Cretaceous and Tertiary
resulting in gentle folding and NW and NE trending faults. Tension fractures both
longitudinal and transverse to the fold axis trend at this time where locally affected by
hydrothermal activity resulting in the formation of quartz breccias.

The principle metallogenic feature throughout this period is late kinematic gold mineralisation
in the metasedimentary belts. This includes mineralisation associated with banded iron
formations, shear hosted carbonate / gold bearing veins and sediment hosted quartz / gold
bearing veins as seen in the San Simon Project area. The San Simon gold mineralisation is
similar to that seen elsewhere in the Amazon Craton as at the Pones e Lacerda region of Mato
Grosso in Brazil. At these locations gold mineralisation is associated with thrust faults in the
hinge zones of upright folds that are infilled with quartz veins systems, with later hematite
and arsenopyrite or pyrite. Small gold placer deposits and laterite enrichments of Tertiary age
are also present locally.

4.2 STRUCTURAL SETTING OF THE SAN SIMON PROJECT AREA

The deformation history of the Puerto Villazon area which includes the San Simon Plateau
was examined by the British Geological Survey and the Servico Geologico de Bolivia
between 1976 and 1983 (Pitfield et al, 1983). Pitfield set up a seven phase deformation
history assigning D1 to the Trans-Amazonian Orogeny and D2-D7 to the San Ignatio
Orogeny. D1-D3 he defined as primary (major and regional) deformation events and D4-D7
secondary (relatively minor and / or localised) deformation events. The principal structures
associated with each deformation are described in order from oldest to youngest below:
• D1: Displays a stratiform foliation confined to the Chiquitania Gneiss’s Complex. It
is not found in the San Simon Plateau area and is not discussed further.
• D2: Overturned to recumbent, tight to isoclinal, N-S trending folds and nappes with
an associated planar fabric often parallel to bedding. Major thrusting associated.
• D3: Major to minor upright to inclined folds with an ENE-WSW trend. Planar fabric
associated with the folding. Major thrusting associated.
• D4: Major upright, open to tight folds with a NNW-SSE trend. Penetrative fabric
developed in places, elsewhere forming a strain-slip cleavage. Thrusting
developed along fold limbs.
• D5: ENE-WSW trending, open folds with locally developed shearing and fracture
cleavage (locally strain-slip cleavage). Kink banding developed. Folding
uncertain in the San Simon Plateau area but may be interpreted as D4 folds west of
the Canadon Verde Shear Zone. Probably the cause of significant dextral shear
movement along the Canadon Verde Shear Zone.
• D6: Minor E-W trending shears with associated mineral alignment and joint sets.
Only present in late kinematic intrusions.

9
• D7: Brittle, E-W trending shear fractures, some protomylonitic, and associated joint
sets.

The structural pattern observed in the craton consists of older granulites exposed in the core of
D3 antiformal folds, with gneiss’s in the limbs and younger schists within the axial zone of
the D3 synforms. The San Simon area forms a dissected plateau 300-450 m above a low
lying peneplain of mid-Tertiary San Ignacio laterite and Quaternary alluvial deposits. In this
area the Serrania San Simon Group is assumed to form a low grade D3 synformal core
surrounded by the higher grade rocks of the Serrania Martinez Group, however as will be seen
later in Section 5.2.3 it does not entirely conform to this interpretation. Based on Pitfield’s
deformation sequence defined above there are potentially 6 deformation phases affecting the
rocks at San Simon with the D2 - D5 phases having the greatest impact on the geology and its
interpretation.

Regional metamorphism is principally associated with the D1 - D4 deformation phases.


During D1 high-grade amphibolite to granulite metamorphic assemblages developed in the
basement. Metamorphism is believed to have peaked between D2 and D3 reaching medium
grade amphibolite facies in gneissic rocks and lower amphibolite to lower greenschist facies
in the higher level metasediments. D4 saw the development of low to very low greenschist
facies. This represented a prograde metamorphism in the Serrania San Simon Group but was
retrograde in all lower units. A further localised retrogression is associated with D5
structures.

5.0 STRUCTURAL STUDY

5.1 STRUCTURAL GEOLOGY

The San Simon Plateau was structurally divided into an east and west domain by Pitfield et al
(1983) based on the style and complexity of deformation. The NW-SE trending Canadon
Verde Shear Zone (CVSZ) marks the boundary between the two domains (Figure 4). This
section aims to examine the structural geology of the San Simon Plateau and to reassess the
interpretation of Pitfield et al. The geological interpretation will assess the structural geology
of the eastern domain, which includes the prospect area of interest for this study, the Dona
Amelia Zone. A brief summary of the structural interpretation of the western domain will be
presented as it has implications for the interpretation of the eastern domain. Discussion on the
CVSZ will be included in the section on the eastern domain.

10
62°15’W
SAN SIMON
PROPERTY

San A
ntonio
Bound
ary Th
rust
Estancia
Las Brisas

Ca
MANANTIAL

ra
MANGANESO

do
LAS ROSAS

n
Ve
MINA VIEJA

r
de
TRINIDAD

Sh
st
Thru

e
PAITITI s
raya

ar
BURITI Decline Gua

Zo
DONA AMELIA 12/17 ZONE

n
ZONE

e
SAN FRANCISCO

Lo Murillo
ur Thrust
de
s
Th
rus
12°40’S t

LEGEND
Bonanza Metasubgreywacke Formation
EAGLECREST EXPLORATIONS LTD.
El Colorado Quartzite Formation
The Geology of San Simon Plateau
El Cerrito Argillite Formation and Location of the San Simon Property
Small scale mining activity, past and present and Dona Amelia Zone
San Simon Project
Property boundary Itenez Province, Beni Department, Bolivia
Project No: IC72 By: TB, JM
Scale: 1:250,000 Drawn: TV
0 5km Figure: 4 Date: June 2005
5.1.1 West of the Canadon Verde Shear

The distribution of the Serrania San Simon Group formations in the San Simon Plateau is
principally controlled by D3 deformation structures. The area west of the CVSZ it is marked
by an increased complexity in the style of deformation. This is reflected in the presence of at
least one D2 nappe structure and an increase in the intensity of D4 deformation. The area has
also undergone a higher grade of greenschist metamorphism than the eastern domain. The
area has a NW-SE structural trend in the SE which progressively to the NW rotates into an E-
W trend and then into a NE-SW trend. This rotation is the result of F4 folding of D3
structures, including a synform - antiform fold pair, thrusts and reverse faults. The F3 folds
have themselves folded the upper limb of a flat-lying D2 thrust nappe structure which is in
turn rotated by the F4 folding.

The vergence of the recumbent F2 nappe structure and accompanying thrust is unknown but is
most likely to have been to the east. The F3 folds are upright, open - tight and have an E - W
trend with a northerly vergence. This has produced a type 2 fold interference pattern. Where
plunge has been established the F3 folds are seen to plunge in a northwesterly to northerly
direction. S3 is the dominant fabric visible and has a steep dip parallel to the trend of the F3
fold axial surfaces. The F4 folds typically have a northwesterly trend and are associated with
thrusts displaying a similar trend. The F4 folds are upright, open - tight and have fold pairs
plunging in opposing directions. The S4 cleavage is subvertical and of varying orientation.
The vergence of the D4 structures is unclear.

5.1.2 East of the Canadon Verde Shear Zone

As the Dona Amelia Zone is located to the east of the CVSZ, understanding the structure of
this area is crucial to interpretation of the mineralisation targets. Pitfield et al essentially
divided the area into three E-W trending blocks separated by north verging thrust faults
(Figure 3). The southern thrust, called the Murillo Thrust, has the El Cerrito Formation
exposed to the south. Four kilometres to the north is the Gurayos Thrust with the El Colorado
Formation exposed to the south. Eight to twelve kilometres to the north of this is the NNW -
SSE trending San Antonio Boundary Thrust. Between the Gurayos Thrust and the San
Antonio Boundary Thrust an antiform - synform fold pair affects the whole of the Serrania
San Simon Group sequence with the El Cerrito Formation and the El Colorado Formation
exposed in the eastern escarpment of the plateau and the Bonanza Formation exposed over the
rest of the plateau area.

This interpretation is in part erroneous, in particular the structure is more complex and does
not approximate to a simple antiform - synform fold pair. The vergence of the structure
between the Gurayos Thrust and the San Antonio Boundary Thrust is to the south with
bedding principally facing to the north (Figure 5). This can be interpreted in two ways:

12
1. The area represents the long limb of a south verging fold and thrust sequence with
southerly directed thrusting along the San Antonio Boundary Thrust, Gurayos
Thrust and Murillo Thrust.
2. The area represents a major antiformal hinge zone of a north verging antiform -
synform fold pair. The south verging short limb of the fold pair is exposed
between the Gurayos Thrust and the San Antonio Boundary Thrust. The
antiformal hinge is located along the Gurayos Thrust and the major synformal
hinge zone to the north has been excised by the San Antonio Boundary Thrust.

Although a cursory glance at the map might suggest that interpretation 1 is the more likely, an
examination of all the evidence indicates that interpretation 2 is correct (Figure 6). In
particular the south dipping orientation of the thrusts and the kinematic indicators suggest that
all the principal thrusts are north verging. This also fits more closely with regional
interpretation of the area that favours the presence of a major synformal hinge zone (Figure
3), here represented by the San Antonio Boundary Thrust.

At least five major fold hinges are present between the Gurayos Thrust and the San Antonio
Boundary Thrust (Figure 5). Three of these are well displayed by the folding of the Serrania
San Simon Group sequence in the eastern escarpment. In the south is an antiform and to the
north is a synform - antiform fold pair. The northernmost antiform has had its much of its
northern limb excised by the San Antonio Boundary Thrust. Fifteen km to the NNW of these
folds a second lower wavelength SE verging fold pair is present adjacent to the San Antonio
Boundary Thrust. As there are no lithological factors controlling the increased frequency of
folding here it suggests that the area is proximal to the major synformal hinge excised by the
San Antonio Boundary Thrust.

A D4 NNE - SSW trending fault (here called the Las Brisas Fault) is present extending SSE
from the San Antonio Boundary Thrust in the Estancia Las Brisas area. This fault is a
significant lineation affecting the orientation of the structures either side of it. To the E of the
fault the F3 folds have a NNW - SSE trend, this changes across the fault to an E - W trend
before returning to a NNW - SSE trend westwards as the folds are dragged into alignment
with the CVSZ. By contrast the southernmost antiform appears to adopt an E-W trend and
possibly a WSW - ENE trend westwards before it reaches the Las Brisas fault. Once across
the fault the location of the antiform is unknown. This may be because:
1) the area immediately west of the fault has not been mapped in sufficiently detail to
locate its position;
2) the antiform correlates with the antiform in the Trinidad - Manganeso area; or
3) only the northern limb of the antiform is exposed west of the fault as a result of the
fault displacement, fold plunge and axial surface orientation.

Explanation 3 is considered the most probable. To the west of the fault a 6 km (maximum)
sequence of north younging and north dipping beds is present. This compares with a 4 km

13
595000E 600000E 605000E 610000E

F3 Sa n An
tonio B
oundary
Thrust
F3
F3
F2
F3

8500000N

F4
Qu
ar
tzi
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Sh t
ea men F3
rL nea
ine y Li
am alle
en t ral V
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D3
Las Brisas Fault
TMT F3
D3
8495000N

F3
Trinidad
F4
TMA Manganeso Paititi
Ca

D2/3
n

Gura
ad

F4/5 yos
on

Buriti Thru
st D3
Ve

?
rd
e
Sh
ea
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San Simon Fault F4


Mur D3
on

F4 illo Thru
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st F4

Background image: SPOT


after Bruland and Allen, 2004
LEGEND
Fault showing movement: strike-slip; N.B. Dashed lines denote uncertainty
thrust-reverse hangingwall EAGLECREST EXPLORATIONS LTD.
Fault showing probable downthrown
block Major Structures East of the
Antiform; synform; Canadon Verde Shear Zone
plunge direction
San Simon Project
Antiform or synform Itenez Province, Beni Department, Bolivia
Project No: IC72 By: JM
Bedding dip and younging direction
Scale: 1:100,000 Drawn: TV
0 2000m Figure: 5 Date: June 2005
TMA: Trinidad-Manganeso Antiform UTM Zone 20 South
TMT: Trinidad-Manganeso Thrust-Reverse Fault
South North

A. West of Las Brisas Fault

aneso

eve aneso
lt

rust
Fau

Bound ntonio
rust

ary Th
d-Mang

Line l Valley
m

rse
ng
Antifor
t

nt
hrus

s Th

Thru dad-Ma

San A
ame
illo T

tr a
Trinida

s t- R
a o

Cen
i
Gur

Trin
Mur

North Verging Short Limb


of Fold Pair

San Simon Plateau Area

B. East of Las Brisas Fault

rust
Bound ntonio
rust

ary Th
t
hrus

s Th

San A
illo T

ayo
Mur

Gur

LEGEND
Antiform and synform axial trace
Fault showing movement: double EAGLECREST EXPLORATIONS LTD.
arrow indicates opposing reactivation
N.B. Dashed lines denote uncertainty Diagrammatic Sections Through the
Bedding attitude
San Simon Plateau Illustrating Major Structures
West and East of the Las Brisas Fault
Bedding youging direction San Simon Project
Itenez Province, Beni Department, Bolivia
Project No: IC72 By: JM
Scale: schematic Drawn: TV
0 2km
Figure: 6 Date: June 2005
Horizontal Scale
sequence of north younging beds on the northern limb of the antiform to the east of the fault.
This increase in thickness is believed to be the result of thrust repetition of the beds west of
the fault by a shear extending NE - SW for 9 km along the Central Valley lineament between
the CVSZ and the Las Brisas Fault. This thrust-reverse fault is likely to dip steeply to the SE
and downthrow to the NW. Neither the fault nor the Central Valley lineament extend east of
the Las Brisas fault.

The F3 folded sequence is cut to the south by the Gurayos Thrust. This thrust marks the
boundary between the north younging sequence to the north and the south younging sequence
to the south and the thrust therefore represents a major faulted antiformal hinge zone.
Kinematic indicators along the thrust show thrust movement was to the north. The thrust has
a general E - W trend but this masks distinctive, gentle F4 folding of the thrust along NNW -
SSE trending axes. This has given an ENE - WSW trend to the thrust in the east. This
changes to a WNW - ESE trend for 6 km westwards to Paititi, followed by a reversion to the
ENE - WSW trend westwards for 5 km to Buriti and beyond. To the south of the thrust are
the El Colorado Formation quartzites. Neither the thrust nor the El Colorado Formation can
be unequivocally traced further westwards beyond a D4 NNE - SSW trending fault (here
called the San Simon Fault) that extends NNE from the Murillo area. This fault is believed to
have a westerly downthrow.

The Trinidad - Manganeso mineralised trend is an antiformal hinge zone that has been
deformed by northerly directed thrusting (Figure 7). The coincidence of antiformal hinge,
thrust zone and mineralisation can only be explained by thrusting being at least partially
controlled by the axial surface of the antiform. In this respect it is the same as the Paititi -
Buriti mineralisation trend that is controlled by the Gurayos Thrust which is developed along
an antiformal hinge. Initial results of field examination of the Trinidad-Manganeso Thrust-
Reverse Fault (TMT) zone, as well as mapping completed as part of this study and
compilation of all mapped data all suggest that the TMT can be traced between the Trinidad
area and the Gurayos Thrust at Paititi. It would appear that the TMT is a possible
continuation of the Gurayos Thrust west from Paititi and that the thrust continuation to Buriti
is an imbricate ramp structure (renamed here the Buriti Thrust). The TMT is affected by
gentle F4 folding along NNW - SSE axes, as is the Gurayos Thrust, giving it a similar
sinuosity with alternating WNW - ESE and ENE - WSW trends. The overall trend of the
TMT - Gurayos Thrust is WNW - ESE. West of Manganeso the TMT takes on a
northwesterly trend as it is dragged into alignment with the CVSZ. The TMT typically dips at
approximately 35° - 55° to the south. The plunge of the antiformal hinge, as measured from
bedding on either side of the thrust, is 32° → 227° with an axial surface dipping steeply south
on a trend of 095°. The WNW plunge of the antiform helps to explain the increasing
appearance of quartzite ESE along the hinge of the antiform as the older quartzitic El
Colorado Formation becomes increasingly visible as the deeper core of the fold is exposed
eastwards. The TMT makes explicit the antiformal nature of the Gurayos Thrust and is not
the continuation of the major synform mapped by Pitfield et al in the basement to the east of
the San Simon Plateau as suggested in his Figure 21 (Pitfield et al, 1983). This major
synform has probably been excised and is represented instead by the San Antonio Boundary
Thrust which has likely nucleated on the synformal hinge.

16
The Murillo Thrust is 3 km south of the Gurayos Thrust at Paititi and is marked by an intense
zone of brecciation. The thrust marks the boundary between the El Colorado Formation to the
north and the older El Cerrito Formation to the south inferring it has a northerly thrust
direction.

The CVSZ is a major NW-SE trending shear zone that divides the two structural domains of
the San Simon Plateau. The shear zone is interpreted by Pitfield et al as D4 in age and it is
marked by an intense S4 penetrative foliation. In places this is replaced by a 1 cm spaced
strain-slip cleavage on the limbs of minor folds. A late zone of brecciation is present along
the shear. Where the rocks of the Bonanza Formation on the Las Abras ridge meets the
CVSZ they are rotated into a steep parallelism with the shear zone. All the structures to the
east of the CVSZ are dragged into alignment with it indicating a major dextral strike-slip or
oblique-slip movement along the shear. This is broadly in agreement with magnetic data
showing major dextral movement on a sub-parallel NW - SE trending shear in the
surrounding basement. This presents a problem in relation to its interpretation as a D4
structure. The σ1 stress axis has an E - W trend east of the CVSZ and an ENE - WSW trend
west of the CVSZ, both of these orientations would produce sinistral shear along the CVSZ
rather than the dextral shear evident. The major dextral movement along the shear represents
a later brittle reactivation of probable D5 age with σ1 orientated NNW – SSE (Photo 2).

A strong lineament trending NW - SE in excess of 12 km from the CVSZ to the Gurayos


Thrust at Paititi (Figure 5) was investigated and found to be a 40 m wide band of quartzite,
bounded on the SE by a shear zone with a possible oblique-sinistral shear sense (strike-slip
component dominant) (Photo 3). This lineament forms a prominent ridge, which in places has
a steep scarp on its northeastern side. The N - S trending Las Brisas Fault and San Simon
Fault appear to end at the lineament which adopts an E - W trend in the vicinity of the Central
Valley, probably as the result of F4 N - S folding. The significance of this structure is
unknown but it is noted that the Gurayos Thrust zone at Paititi has a somewhat similar shear-
bound quartzite band juxtaposed between arenites.

The deformation sequence visible east of the CVSZ is similar to that visible to the west of the
shear zone but with a marked decrease in the intensity of F4 folding and faulting. Although
there is no unequivocal evidence for D2 deformation affecting the area east of the CVSZ, the
author believes it probable that the San Antonio Boundary Thrust, and possibly the Gurayos
Thrust, were initially north facing D2 thrusts. All the observed bedding is right way up
suggesting that if the thrusts initiated as D2 features the short limbs have been excised. The
evidence for the presence of D2 thrusts is currently relatively weak and is based on
photogeological interpretation of satellite images (Figure 5). These are suggestive of folding
of the San Antonio Boundary Thrust by the F3 folds along the eastern escarpment of the San
Simon Plateau. Pitfield et al show this thrust extending with a WNW - ESE trend along the
northern edge of the plateau and adopting a NE - SW trend at the eastern end of the plateau,
possibly as the result of F4 folding (Figure 4). This does not accord well with the satellite
image evidence which shows the formations and probably the thrust flexing into a general N -
S trend as they are affected by the F3 folding. Confirmation of the presence of D2 thrusting
can only be gained by field examination of the proposed thrust surface. Major D2 thrusting is

17
Photo 2: Minor, downward facing antiform
of probable D5 age, defined by hematite-
limonite enriched sandstone layer, plunges
gently to the south at Manganeso. These
folds may be related to a D5 dextral
reactivation of the Canadon Verde Shear
Zone.

Photo 3: Quartzite augen block set in silicified arenite along the Quartzite Shear Lineament
in the Central Valley. The origin of these structures is unknown but they are associated
with evidence of sinistral shear along the lineament.
present west of the CVSZ and its presence to the east should not be ruled out until field
examination is complete. Apart from interesting satellite evidence of a large, tight F2 fold
refolded by an F3 fold pair NW of Estancia Las Brisas no other evidence of F2 folding or S2
fabric has been identified.

The F3 folding has produced upright, rounded, open folds with wavelengths varying from 2 -
5 km. Axial surfaces dip steeply to the SSE or S depending on the local fold axis trend as
discussed above. A steeply dipping S3 foliation is the dominant fabric seen throughout the
area and dips at 65° to sub-vertical with a NW - SE trend (Photos 4 and 5). In places a
bedding foliation is developed that is similar in appearance to the S3 fabric (Photo 6). There
is a possibility that the southernmost antiformal hinge to the east of the Las Brisas Fault is the
major antiformal hinge affecting the Serrania San Simon Group. If this is the case the
Gurayos Thrust to the south represents a thrust repetition of the antiformal hinge area. This
fold may also be equated with the Trinidad-Manganeso antiformal structure, although this
correlation is thought unlikely.

The area has been folded by N - S trending F4 gentle - open folds and this has affected the
plunge of the F3 folds. This is most noticeable in the Estancia Las Brisas area where the F3
synform is seen to both change orientation and have opposing plunge direction either side of
the D4 Las Brisas Fault. This plunge reversal effects a downward plunge towards the fault
resulting in a depression. This suggests the presence of periclinal F3 folds resulting from F4
interference of F3 folds forming F3 dome and basin structures. It should be noted that the
dominant plunge of the F3 folds remains down to the NW at 20-40°. The F4 folds have a
moderate plunge to the N. F4 folds are most apparent in the south of the San Simon Plateau
where they fold the Gurayos Thrust, the Buriti Thrust, the TMT and the NW - SE trending,
shear-bound, quartzite lineament. Here the folds have a wavelength of ~ 6 kms. Both the N -
S trending Las Brisas Fault and the San Simon Fault are probable D4 structures and are
thought to have a sub-vertical orientation and a downthrow to the W.

5.2 MINERALISATION

5.2.1 The Trinidad-Manganeso Antiform and Thrust-Reverse Fault

Economic gold mineralisation in the Dona Amelia Zone is principally controlled by the TMT
and associated strike-slip faulting. This section examines the nature of the TMT, its dynamic
and spatial relationship to the Trinidad-Manganeso Antiform (TMA) and the timing of the
gold mineralisation. This study will attempt to tie these elements together for the first time.
As shown in Section 5.1.2 the San Simon Plateau is a major F3 antiformal hinge zone with a
south verging sequence of folds on its northern limb and a major D3 synformal hinge to the
north that has been removed by the San Antonio Boundary Thrust. The antiformal hinge zone
is represented by the Gurayos Thrust in the east and can be traced to the west into the TMT.
As a result of field examination undertaken as part of this study and examination of the drill
core and sections resulting from Eaglecrest’s drilling program, the primary structural controls
on the mineralisation can be assessed.

19
Ss
Ss
S3

5 cm

Photo 4: Gravel conglomerate showing graded bedding (Ss, grading direction arrowed) and
rotation of linear clasts into S3 fabric. Some squeezing of mudstone clasts around quartz
clasts. Evidence for pressure solution at edge of outsize red mudstone clast. (TRD-120
~14.35).

Sericite
Sericite
alteration
alteration
S3

5 cm

Photo 5: Pebble conglomerate showing rotation of linear clasts into S3 fabric. Pebble clasts are
principally quartz, chert and mudstone (some phyllitic) and they are set in a coarse sandstone matrix.
The edges of the sandstone grade clasts and some of the pebble clasts show sericite recrystallisation,
probably after mudstone or feldspar. There is little evidence for squeezing of clasts. A few thin
shears defined by mudstone and sericite are sub-parallel to the fabric (TRD-116 ~20 m).
Photo 6: Bedding foliation developed in cross-bedded litharenites at Paititi.
The results of this analysis reveal that the TMA can be traced as a distinct change in bedding
dip direction and younging direction (Figure 7) for 4 km from the CVSZ to the San Simon
Fault and beyond. The antiform displays consistency along its length remaining ~200 m
south of the main TMT and mineralisation zone apart from a 0.5 - 1 km section at Las Rosas
and possibly at Trinidad. The hinge is nowhere clearly exposed although there is a marked
contrast in the bedding on either side of the axial trace. To the south the bedding dips
persistently at 30-60° to the SE. In the hinge zone (~ width 250 m) the bedding dip decreases
to 10-30° and the dip direction is variable, although to the west it takes on a distinct westerly
dip indicating the plunge direction of the antiform in this area. To the north of the hinge zone
bedding dips at 30-60° to the NW although it is less persistent than the bedding to the south
and in general is more steeply dipping than the bedding to the south. Stereographic plotting
of the bedding gives a fold axis dipping at 32°→277° and an axial surface inclined at
84°→185°. The variably dipping bedding in the hinge zone is best displayed in the road
cutting exposures 1 km east of San Simon.

The main zone of mineralisation is exposed 200 m north of the anticline along the TMT. A
full description of the zone is presented in the next section. The TMT dips to the south at 35-
55° with thrust movement up dip to the north.

The location of the TMT mineralisation zone and the antiform are more problematic for a 0.5
- 1 km strike length section at Las Rosas. Here the position of the antiform has been
displaced by up to 900 m to the north. To achieve this a conjugate set of strike-slip faults as
shown on Figure 7 provide the most likely explanation: a NNE - SSW trending sinistral fault
effecting a displacement of 900 m and two NW - SE trending dextral faults effecting an
overall displacement of 750 m. Assuming a consistent relationship with the TMT this would
mean that the TMT and potentially the mineralisation zone have also been displaced placing
them along a stream 200 m SE of the road through the Central Valley. A field visit in this
area suggested the presence of a significant shear zone (Photo 7) and a large volume of quartz
is present as subcrop. Further mapping is required to confirm the presence of these strike-slip
faults, their displacements and their relationship to the mineralisation zone.

Examination of the drill core reveals the presence of quartzite at depth in many of the sections
(Figure 8). The quartzite has a variable core thickness reaching a maximum of 400 m in TRD
055. This contrasts with the arenaceous / rudaceous sequences exposed on the surface.
Quartzite is sporadically exposed at surface in the Dona Amelia Zone but usually it is present
in thin units of less than 10 m thickness as seen in the road section 1 km east of San Simon. It
is well exposed in the footwall of the N - S trending thrust 40 m NE of the Mina Veija Fault at
Trinidad which may well be a sole thrust from which the Mina Veija Fault has formed as an
imbricate structure. The presence of this quartzite at depth needs explanation. Close
examination of the core and the core sections derived from it reveal a number of points:
a) the quartzite is typically found in the hangingwall of the main TMT (e.g. TRD 85,
TRD 63, TRD 30);
b) arenites are present overlying the quartzite and are often found underlying the
quartzite, particularly in the footwall of the main TMT (e.g. TRD 75, TRD 61, TRD
29); and,

22
80
0.5
0
30

0
50
90
90 2.0

0
2.0

40
90 90
2.0 2.0

35
0
90
3.0
90

0
90 2.0

45
3.0

595000E 50
0
596000E 597000E 598000E 2.0 599000E 90
55 3.0

Qu
90
2.0
90 90
350 90 3.0
40 350 90 2.0
0 6.0 85

artz
2.0 0 0.5
90 30
2.0 90
1.5
90

ite
90 1.0
0
40 90
1.5 90 90 2.0
45
3.0 90

S
0 90 10.0
3.0
1.5

hea 90 90
3.0 3.0

3.0
90
90

r Li 3.0 85
300 0.5

400
nea
90 90
3.0
2.0
90
50 1.5

me

300
350

40 0.5
90 2.0

0
30
nt
90

sv
1.5 300
70
4.0 90
90
4.0 90
5.0
90
3.0
90
4.0
90

48
90
2.0 2.0
0.5 90
90
3.0

40
0
57 60

0.6
90
2.0
90

5.0
90

0
35
56
40 350
90
27 60 1.0 60 0.5
0.5 1.5
44

ent 84
300
350 300 58 40
Sil 1.5

8496000N
60 30

eam Veta Cumbrera


450 90 90
27 4.0
1.5

y Lin
65
41
CUMBRERA
Sil 400
63

Valle
Aspy 54
35
0

60 60

tral
50 2.0

TMT?
65 2.0
Aspy 90 90
Sil 60 60 1.5
2.0 2.0

400
Cen
75 60 52 2.0 90
90 1.5
60

82
1.0
350
58
90
90 2.0
45 1.0
350
32 Aspy 1.5
40 450
23
sil
55
90 Aspy 60
80

Mina Vieja
1.5 80
Au 2.0
25 28

45
35
0
90

?
85 90 2.0 1.5 50
35 90

TMT
Au 4.0 90

30 36
0.5
1.0
500

0.8
0
40

450
500
Trinidad 60
VtQz de 10 cm
Qz
2.0
45

3.0
90 1.0
90

1.5 56
56

TSANMPEDRO
85

TMT
66 70
16

TMA
MINA 56VIE JA 5424 22 54 2.0 1.5

T
23 69
56

TRINIDAD/
54 14 5 10
5.0 0-10 84 57 50

50
56
20 73 43 65

1
48
80
18
6 ,2 63
90
52
42
19 20 39 1.0
11

A
24
450
43
55

15 47
40 44
40

49 17 1 2 8 12,13 42 77

TM ?
33 62
61
1.0
3
S 45 4 15

ROSA
25 129
0 7 75
1.0
40 1.6 0.5 20

LAS 55 40 70 1.5 0.5 400


40

74 35 T 35
90
101

M
54

28
96 98 99
50 93

T
0 52 35 94
91
40 64 62 35 97 1.0 123
35 34
550 0
45 50 90 33 27 128 55 90 120
83 26 127
0 75 58 37 88 28 125
0
35 84
65

?
40 1.2
90

TMT
38
47 48 67 89 86
2cm 53
32 30 29 100 103

TMA
119 110 118
122

8495000N
37 30 132 130
0
35 40
2cm
42 40 36 124 126
31

0
50
water 39
500
supply
131

IAL
TM

60

MAN
T
AN24-33 0.4
68(L)
61
33 4.0
60
2.0
90
500
25
0.2

SA
80 20 42

F4
10 75

TMA
0.8 0-26

N
45
T

0.8 0-26

SI
0.4
1.2

Las Rosas
3.0 50 45 1.2

MO
ManganesoESO
3.0 45
0.8 50 0.3 0
55
12 59
0
50

N
0.8 74 76 47 70
46 50 80 15 51
1.50m 40 66(M) 72(L)
45
55 30 0.4 40 0.4
110 1.2 82
40 113

San Simon
35 50
54
AN 38 50
4090cm 45 45 70 54
1.2
45 1.2
1.2 1.14m 79
NG
56
75 45 1.5 49
114

TMT
45

MA
45 1.5 0 81
50 55 78(L)
40 43
117

TMT?
Aspy 55 104 44
Aspy 115 52
0

41 106
40

45 75
581.8 45 77
2m 30
TM

20 107
45 56 46
35 1.75m 30 20
60cm
60cm 35 1.10m 108 92 57
35
32 53 0 48 95
2m 85 1.10m
46 water
14 40 vn 71 0 supply
qvs 112 z 105 60 55
4953
1m 2-4/m qt
A

30 73 111
) 109
(+ 102

82
m 65 87 0
2 50
41 1. 63
53
350

15 69

116

50

500
TMA
32 85

500

300
121

22 550

42
400 55
0
56
Ca

350

500
na

8494000N 0
40

45

sv
0
do

45
0
50 5.0

F4/5
nV

43
400
erd

60 0.5
eS

300

450

550

30 0.4
35
he

sv
ar

400

50
0
Zo

30
0

? San Simon Fault


400
50
ne

0.1
0
4.0 10.0 10.0 45
500

60 0.1

45 500
300

40
1.5

0
4.0 60
6.0
4.0

LEGEND 350

TMA: Trinidad-Manganeso Antiform


350

5.0

Antiform; synform; plunge direction TMT: Trinidad-Manganeso Thrust-Reverse Fault

450
40
0

EAGLECREST EXPLORATIONS LTD.


350

400
Fault showing movement: strike-slip; N.B. Dashed lines denote uncertainty
0
25
25

35
0

0
45

3.0 4.0
0

thrust-reverse hangingwall
Structural Geology of
Fault showing probable downthrown block
the Dona Amelia Zone
43 Bedding strike / dip San Simon Project
Itenez Province, Beni Department, Bolivia
sv S3 fabric strike / dip (SV: Sub-Vertical)
Project No: IC72 By: JM
Quartz mineralisation trend Scale: 1:25,000 Drawn: TV
Microdiorite sill 0 500m Figure: 7 Date: June 2005
Diamond drill hole UTM Zone 20 South
8494000 8494200 8494400 8494600 8494800

South North
500m Looking West

3
8

6
Trinidad-Manganeso Thrust-Reverse Fault

-0

-0

75
D

-0
TR

TR

D
TR

TRTRD-050
400m

9
-

04
D
Trench

300m

200m

100m

LEGEND
Arenite EAGLECREST EXPLORATIONS LTD.
Quartzite
Vertical Drill Hole Section (595482E)
Sericite alteration zone Through the Trinidad-Manganeso Thrust-
Quartz vein Reverse Imbricate Zone at Manganeso
San Simon Project
Fault in drill core Itenez Province, Beni Department, Bolivia
Project No: IC72 By: JM
Fault indicating throw direction Scale: 1:4,000 Drawn: TV
TRD-085 0 100m Figure: 8 Date: June 2005
Diamond drill hole trace and number
UTM Zone 30 South
8 cm

Photo 7: Block of brecciated quartz with associated shear fabric including foliated gouge and
quartz segregation veining. This block and similar in situ evidence of a significant shear zone is
present 500m NE of the Main Quartz Vein at Las Rosas and is proximal to the proposed location
of the Trinidad-Manganeso Thrust-reverse Fault after the latter underwent major strike-slip
faulting in Las Rosas area.
in places arenites are intercalated within the quartzite to a maximum core thickness of 80 m
(e.g. TRD 69, TRD 42, TRD 51), the quartzite / arenite contact is often sheared (e.g. TRD 63,
TRD 57, TRD 85), and there is associated brecciation of the quartzites, particularly within the
hangingwall block (e.g. TRD 55, TRD 69, TRD 36).

The quartzites may well represent the upper sequence of the El Colorado Formation at the
contact with the overlying Bonanza Formation. As the Serrania San Simon Group sequence
folded a major south dipping listric thrust fault formed in the hinge zone of the anticline and
north directed thrust-reverse displacement took place along it (Figure 9). This thrust the El
Colorado Formation on top of the overlying Bonanza Formation arenites on the northern limb
of the antiform. The thrust-reverse fault is represented at surface by the TMT and is likely to
have nucleated at depth on the underlying argillaceous sequence of the El Corrito Formation.
As the thrusting progressed the TMT has acted as a sole thrust and the overlying sequence has
locally imbricated as demonstrated by the repetition of the arenite / quartzite units in the
overlying tectonic sequence (Figure 9). This imbrication will have nucleated on any weak
lithological units (argillites or thin arenites) within the quartzite formation but will also have
incorporated arenites from the Bonanza Formation below the main thrust-reverse fault. This
has resulted in an anastomosing sequence of faults in a damage zone that extends either side
of the main TMT, but principally affects the hangingwall of the main thrust-reverse fault.
Competency contrasts between the quartzites and arenites have led to shearing at most of their
contacts. Although fault related brecciation is common, particularly in the hanging wall, the
main movement has taken place along the sole thrust fault, the TMT, and this has consistently
acted as the principal conduit of mineralisation with less productive shoots associated with the
imbricates and related faulting.

The association of thrusting with antiformal hinge zones is typical, as is the presence of an
antiformal axial trace in the hanging wall block 200 m south of the main thrust-reverse fault.
The close spatial association of the antiformal axial trace and the TMT is interesting as it
suggests the thrust-reverse fault has nucleated on the plane of weakness associated with the
axial surface of the fold. However the thrust-reverse fault is dipping south at 35-55° (in
places up to 70°) instead of the steep southerly orientation of the axial plane. This suggests
the orientation of the thrust-reverse fault has in part been controlled by the bedding dip on the
southern limb of the antiform as well as the hinge axis. It should also be noted that as the
antiform is plunging to the west the quartzites of the El Colorado Formation are likely to
become increasingly exposed to the east in the core of the antiform towards Paititi.

The TMA and the TMT have been formed as the result of D3 N - S compression. In the Las
Rosas area the TMT is seen in a number of places to cut: a) the hangingwall contact of the
main vein and its associated brecciation zone of hematite - quartz - arsenopyrite - gold
mineralisation; b) the sericite alteration zone in the hangingwall of the vein (Photo 8); and, c)
a variably dipping sheeted vein set within the alteration zone (Photo 9). Kinematic quartz
slickencrysts, rodding structures and hematitic mineral elongations on the thrust-reverse fault
surface indicate both vertical and oblique sinistral thrust-reverse movement. This indicates
that there have been a number of shear movements along the TMT that have both controlled
the mineralisation and later displaced it. The later thrust-reverse

26
South North

A.
Bonanza Formation
El Colorado Formation
El Corrito Formation
Basement

B. Trinidad-Manganeso
Antiform

Trinidad-Manganeso
Thrust-Reverse Fault
Mineralisation Associated and Associated Gold
With Localised Mineralisation
Thrust-reverse Faulting
C. Extensive Fold
Related Dilation and
Associated
Mineralisation

Gold Bearing
Hydrothermal
Fluids

LEGEND
Thrust-reverse fault indicating
throw direction
EAGLECREST EXPLORATIONS LTD.
Bedding attitude
Diagrammatic Section Showing Formation of the
Trinidad-Manganeso Antiform and Thrust-
Maximum compression axis Reverse Fault and Related Mineralization
San Simon Project
Itenez Province, Beni Department, Bolivia
Project No: IC72 By: JM
Scale: schematic Drawn: TV
0 2km
Figure: 9 Date: June 2005
Horizontal Scale
Late D3
Thrust- Sericite
Reverse Alteration
Fault Plane Zone Main Quartz
Vein

Photo 8: Late D3 Thrust-Reverse Fault displaces both the Main Quartz Vein and the
sericite alteration zone along the Trinidad-Manganeso Thrust Reverse Fault at Las Rosas.

3 cm

Photo 9: Thin quartz vein forming one of a set of sheeted veins dipping at ~60° à 215° is deformed
by thrust related to late D3 thrust-reverse faulting.
movement that displaced the mineralisation zone requires a N - S compression axis. As all N
- S orientated thrust-reverse compression in the San Simon Plateau was contained within the
D3 deformation phase it means that all the associated vein mineralisation, including gold
mineralisation, currently recognised is D3 in age.

5.2.2 Mineralisation Along the Trinidad-Manganeso Thrust-Reverse Fault

The TMT extends for 4 km along-strike with an overall WNW - ESE trend, but shows
significant local trend variation (Figure 7). The hematite - quartz – arsenopyrite – gold (H-Q-
A-G) mineralisation is associated with the shearing and brecciation of a 0.1 - 6 m thick quartz
vein found along the TMT. This quartz vein is referred to as the main quartz vein (MQV). At
its western end the TMT takes on a NW - SE trend probably resulting from dextral drag into
alignment with the CVSZ, but possibly resulting from N - S trending, antiformal F4 folding
plunging 30° to the south. Fifty metres east of where the TMT crosses the road a series of
closely spaced 2 - 10 cm sheeted quartz veins infilling tension gashes dip at 69°→074°
cutting the main vein (Photo 10). The tension gashes are folded suggesting normal movement
on faults dipping at 73°→128°.

NE of this point the TMT takes on a NE - SW trend for 200 m before reaching a 150 m zone
where it is affected by a series of closely spaced NNW - SSE and NW - SE trending faults
forming a conjugate strike-slip fault set. Most of these faults have quartz veining present and
are brecciated with H-Q-A-G mineralisation associated similar to the MQV but with lesser
intensity. In one place a 1.5 m thick quartz vein infilling a NNE - SSW trending strike-slip
fault is seen to cut the main vein. The throw on these faults is typically less than 20 m. Drill
core indicates persistent high gold values over a 150 m section including 14.35 g / t over 1.46
m (TRD - 106), 9 g / t over 0.95 m (TRD - 071), 5.4 g / t over 0.41 m (TRD - 045) and 5.86 g
/ t over 0.16 m (TRD - 107).

For the next 500 m to the ENE the TMT is locally exposed and affected by further strike-slip
faulting with throws of up to 200 m. Drill core indicates that first a second and then a third H-
Q-A-G mineralised and brecciated quartz vein appears sub-parallel along-strike to the MQV
at this point. The MQV infills the TMT which acts as the main locus of thrust-reverse
movement and consistently delivers the most high yielding gold values. The narrower less
productive veins above it infill imbricate shears connected to the TMT which acts as a sole
shear (Figure 8). Gold values along the MQV remain high for 400 m and yield values
including 11.8 g / t over 1.04 m (TRD - 077), 9.94 g / t over 0.56 m (TRD - 049), 12.16 g / t
over 1.12 m (TRD - 075), 15.3 g / t over 1.0 m (TRD - 114) and 19.05 g / t over 1.0 m (TRD -
054).

The Las Rosas area is located over the next 1 km to the NE and appears affected by major
strike-slip faulting which displaces the antiformal hinge, the main TMT and possibly the
MQV by up to 900 m to the NW. This is achieved by a sinistral NNW - SSE fault effecting a
displacement of 900 m and two dextral NW - SE faults effecting displacements of 250 m and
500 m. These displacements are based on bedding dip and younging direction evidence and
were confirmed by remapped during this study. In contrast there is also clear evidence for

29
continuation of the TMT along-strike without the need for any major strike-slip
displacements. The MQV is seen at a number of along-strike localities where it is worked by
small-scale miners. This includes one locality where the apparent H-Q-A-G mineralised
MQV and alteration zone are cut by a reactivation of the main TMT. In addition a sheeted
vein set (veins less than 10 cm thick) parallel to the MQV is affected by a late reactivation of
the TMT, as is a NNE-SSW trending strike-slip fault that displaces the MQV. There is also
evidence for gentle folding (probably F4) of the MQV by folds plunging at 50° to the SE. At
another locality a well-preserved hangingwall and footwall of the MQV provide quartz
slickencryst evidence for two phases of oblique-slip sinistral movement along the TMT. The
paradoxes present in this area need resolved by more detailed mapping and have the
capability to significantly increase the resource potential.

Extending NE out of the Las Rosas area the TMT takes on a northeasterly strike dipping at
45-60° to the SE and is cut by three dextral strike-slip faults trending NW-SE and dipping SW
at 40-70°. These strike-slip faults have a maximum displacement of 100 m and have a
brecciated and H-Q-A-G mineralised quartz vein emplaced along them. The orientations
suggest that this area has undergone a post-strike-slip movement anticlockwise rotation of
~15° compared with the TMT to the SW. At one locality a late thrust-reverse movement can
clearly be seen displacing the alteration zone of the MQV at an angle slightly steeper (54°)
than the dip of the MQV (46°). Quartz - hematite slickencryst structures suggest an oblique
sinistral movement has taken place. As the TMT extends NE it becomes steeper locally (up to
70°) and in places in the hangingwall has a sheeted vein set parallel to the MQV. At one
point the MQV is seen within a fault dipping at 45°→220°. This fault forms part of a set
commonly found in the hangingwall block of the TMT and which kinematic descriptors
indicate have a normal movement.

In the main Trinidad pit area the quartz vein is exposed as a 6 m thick sheet dipping at
38°→154° (Photo 11). The vein is affected by two sets of faults with normal movement: one
is as described above; and the other is sub-vertical with a NNE - SSW trend. In addition
quartz slickencrysts on the hangingwall of the TMT indicate an oblique dextral movement,
this movement has not been recorded elsewhere and may represent a late, minor, localised
strain accommodation on the fault. Sixty metres to the east the quartz vein has reduced to 1 m
in thickness and has a strike 10° clockwise with a 6° reduction in dip. The 1.5 m Mina Veija
vein to the E dips at 62°→290° and is displaced by a fault trending ESE - WNW. 40 m to the
NE a similar thrust bound vein dips more gently at 30°→267° and has sub-horizontal
movement indicators with quartzite in the footwall. These two faults are believed to be
related and may indicate early reverse movement followed by horizontal shear on a NNE -
SSW plane inclined to the WNW. The area is strongly disrupted by small-scale mining
activity, however a series of variably orientated, but generally low dipping, sheeted veins
show strong brecciation in places with associated alteration and H-Q-A-G veining. In two
places these are clearly cut by the MQV, unlike to the SE where at least one of the sheeted
vein systems was parallel to the MQV and appeared contemporaneous. Further E the MQV
has an E - W trend dipping at 36°→186°. Here the vein is displaced 5 m by a fault dipping at
75°→116°. The fault has a 30 cm quartz vein infilling it and both the MQV and the fault vein
show brecciation and have associated H-Q-A-G mineralisation. Both faults / veins are then
displaced by a fault trending 80°→142° with a downthrow to the NW.

30
Photo 10: Late D3 quartz filled dilation gashes at Manganeso within sericite alteration zone of
Trinidad-Manganeso Thrust Reverse Fault.

Thrust-
Reverse
Fault
in

Plane
Ve
rt z
ua
in Q
Ma

Photo 11: The Trinidad-Manganeso Thrust Reverse Fault and Main Quartz Vein at the
principal Trinidad mining pit.
The TMT then continues for 250 m into the Dom Pedro zone to the SE as far as the San
Simon Fault which likely effects a downthrow to the E, but may also have a strike-slip
movement component. Mapping completed as part of this study suggests there is a possibility
that the TMT, or a related mineralised splay takes a more NW - SE trend to the San Simon
Fault. The TMT has still to be traced east of the San Simon Fault but evidence from the trace
of the antiform suggests it may trend NW - SE towards Paititi.

Diamond drilling has taken place over a 1.4 km strike length of the TMT at Trinidad. The
results over the easternmost 350 m of high level drilling yielded only one gold value over 5 g
/ t (TRD O86 - 8.30 g / t over 1.24 m). Only a few other values were between 1 - 2 g / t with
the bulk well below 1 g / t. Over the rest of the drilling prospect the results were highly
encouraging and particularly in the 600m adjacent to the Trinidad mining pits. Mineralisation
is constrained along a single SE dipping vein and its surrounding alteration envelope. The
high gold value mineralisation zone widens (e.g. TRD O72 - 1.02 g / t over 15.91m) and
narrows a number of times with depth yielding gold values ranging up to 24.0 g / over 1.7 m
(TRD 011). In the Dom Pedro Zone to the SE two mineralised veins have been identified.
Hilliard (2004) has proposed a minimum of four economic ore shoots in the area with a
resource potential of at least 335,000 oz. His estimate for the resource potential of the
Trinidad – Manganeso structure is 1 million oz.

5.2.3 Mineralisation Sequence and Controls

The gold mineralisation in the TMT is the result of either a single or a series of H-Q-A-G
mineralisation events during D3 deformation. D3 deformation resulted from compressive
stress with σ1 orientated NNW - SSE. It formed a large upright, open antiformal hinge in the
San Simon Supergroup (Figure 9). At depth this antiform is probably a thrust overlying a
basement fracture with most movement probably centred on the argillaceous units of the 300
m thick El Cerrito Formation which may have acted as a decollement horizon. The thick,
competent, overlying quartzites and arenites of the El Colorado and Bonanza Formations are
practically devoid of argillaceous units and display little internal competency contrast except
between quartzite and arenite units. The thrust propagated at a high angle reverse orientation
in these more competent units and is visible as the TMT dipping to the SSE, typically at an
angle of 35-55°, and thrusting to the NNE. The vast bulk of the strain was taken up along the
TMT but also found expression through a number of faults of lesser displacement that sole in
the TMT (Photo 12), some of these are likely to have been imbricate repetitions of the
overlying succession and a degree of anastomosing between fault planes is likely (Figure 8).
In places thin (less than 10 cm and often only a few millimetres) highly deformed, graphitic,
argillaceous bands are found along the TMT and associated faults and these may be derived
from deeper argillaceous units along the TMT or be of hydrothermal origin (see Pitcairn et al
2005).

After the initial thrust movement formed the TMT a featureless milky quartz vein material
was introduced along the resulting fracture reaching a maximum thickness of 6 m in places,
but more typically 1-2 m. This is probably related to the extensive moderately to steeply

32
dipping, barren quartz mineralisation found in fractures throughout the Dona Amelia Zone.
These quartz veins are localised in the area south of the TMT and may relate to zones of
thrust-reverse faulting sub-parallel to the TMT. By contrast, north of the TMT, the quartz
veining is much more pervasive and is probably the result of extensive fold-related dilation
associated with the formation of the TMA (Figure 9). Subsequent reactivation along the TMT
(most kinematic indicators suggest an oblique sinistral movement) brecciated the quartz vein.
In many cases this brecciation extends right throughout the vein but in some veins the central
part of the vein remains unaffected. A thin (typically less than 2 cm) sericitic gouge with
specular hematite is found along the secondary shear planes and syn-deformation
mineralisation introduced H-Q-A-G veins along the shear planes and brecciation surfaces
(Photos 13, 14, and 15). A marked variation in the degree of brecciation and extent of
hematite infiltration suggests that both reactivation and mineralisation were episodic (Photo
16). An extensive green - cream sericitised alteration envelope surrounding the quartz vein
has a well developed fabric parallel to the vein and shows strong gold-bearing hematite
infiltration along fractures (Photo 17). Both discussions with the miners and at least one
assay value show fractures within this alteration envelope are gold bearing. Disseminated
arsenopyrite is found in the alteration zone close to the hematite veins and is sometimes
hosted within the vein as well as rare pyrite (Photo 18).

The transition from early ductile folding and thrusting to late brittle strike-slip faulting along
the same stress axis is common in compressive environments. A conjugate set of strike-slip
faults displaces the TMT throughout its length (Figure 7). Visible spacing between faults
varies from a few metres to 0.5 km. The faults typically trend NNE - SSW (sinistral) and NW
- SE (dextral) with σ1 orientated NNW - SSE as for the main thrusts. The dip on the faults is
highly variable but is typically 60° to vertical. Although their movement is principally strike-
slip a vertical component is usually present. In rare cases the faults show the opposite
movement sense to that typical for the fault trend that is due to a later reactivation along a
different stress axes. The strike-slip faults are also mineralised with an early quartz vein
system (usually less than 1 m thick) with later reactivation and brecciation associated with H-
Q-A-G mineralisation. This similarity along with the coaxial orientation of quartz rod
lineations measured on both the TMT and NNE-SSW trending strike-slip faults suggested to
Hilliard that the strike-slip faults formed late in a progressive D1 deformation that began with
thrust formation and ended with quartz mineralisation. D2 represented a reactivation event
that affected both the thrusts and strike-slip faults and was contemporaneous with H-Q-A-G
mineralisation. This is attractive as it provides the simplest explanation for the observed
features, although requiring simultaneous reactivation on three differently orientated fault sets
(Figure 10). It cannot be ruled out that an early phase of quartz mineralisation and H-Q-A-G
mineralisation was completed along the TMT before the strike-slip faults formed. This would
necessitate a second sequence of quartz mineralisation, reactivation and H-Q-A-G
mineralisation that affected the strike-slip faults subsequent to their formation, this later
reactivation and H-Q-A-G mineralisation also affecting the TMT. In a number of strike-slip
faults brecciated quartz veins with H-Q-A-G mineralisation are seen to cut the TMT
mineralisation. Shallow dipping quartz veins less than 10 cm thick and typically spaced 30 -
100 cm apart form local sheeted sets of variable orientation that in places cross-cut the main
vein and alteration zone, but show H-Q-A-G mineralisation. These represent localised

33
WSW ENE

A.

Thrust-reverse Faulting;
Quartz Mineralisation.

B.

Strike-slip Faulting;
Quartz Mineralisation Along
Strike-slip Planes.

C.

Fault Reactivation Along NE-SW


Compressive Stress Axis: Oblique
Sinistral Reactivation of the Thrust-
Reverse Faults, Oblique Dextral
Reactivation of the Strike-slip
Faults (Downthrow to WSW);
Brecciation of the Quartz Veins and
Hematite-Quartz-Arsenopyrite-Gold
Mineralisation.

D.

Thrust-reverse Fault
Displacement of Earlier D3
Faults;
Displacement of Quartz
Mineralisation, Hematite-
Quartz-Arsenopyrite-Gold
Mineralisation and Sericite
Alteration Zone.

LEGEND
Late D3 thrust-reverse fault:
hangingwall block indicated
EAGLECREST EXPLORATIONS LTD.
Fault with vein infill; strike-slip
movement direction indicated, Diagrammatic Plan View of D3 Fault
hangingwall block as above Formation and Mineralization Along the
Maximum compression axis Trinidad-Manganeso Thrust-Reverse Fault
San Simon Project
Itenez Province, Beni Department, Bolivia
Project No: IC72 By: JM
Scale: schematic Drawn: TV
Figure: 10 Date: June 2005
vertical extension events during the D3 deformation and are possible feather veins infilling
dilation structures accommodating slippage on the main thrust-reverse.

There is clear evidence, as described in Sections 5.2.1, 5.2.2 that the MQV, alteration zone
sheeted veins and strike-slip faults have been cut by a later reactivation of the TMT that is
post-H-Q-A-G mineralisation. As explained in Section 5.2.1 this constrains the timing of the
known gold mineralisation to D3. This late thrust-reverse reactivation could also help to
explain the kinked ‘dogs leg’ vein system seen at Manganeso and Las Rosas (Figure 10).

The controls on the mineralisation are difficult to establish unequivocally. Hilliard has
suggested that NE trending sections of the TMT are important as they represent left jogs, i.e.
sinistral extension zones along the thrust resulting from a sinistral strike-slip component of
movement. These are undoubtedly important as targets as they represent areas of dilation
contemporaneous with gold mineralisation. Whether the Las Rosas area can truly be
considered a left jog, as he suggests, is difficult to establish without a clearer understanding of
the original orientation of the TMT and the deformation history. Hilliard also suggests that
lower angle TMT / MQV orientations (less than 35°) have higher gold values than steeper
areas. This correlation holds true in the Trinidad area adjacent to the pits but seems to break
down elsewhere along the TMT, however flattening out of the TMT is likely to have
increased dilation and as a result areas of lower vein dip are potential targets. The high gold
values and ore shoots of the Trinidad area are located in the hinge zone of a synformal D4
fold (Paititi is located in a similar position on the Gurayos Thrust to the east). As the
mineralisation was constrained to D3 these folds cannot have a bearing on the gold location
without a remobilisation event which is not believed to have taken place, however their
presence should be borne in mind in case a later reinterpretation impacts on their significance.
Similarly at Manganeso four tentative ore shoots identified in an area affected by strike-slip
faulting on values greater than 5 g / t plunge gently to the east, the true validity of this trend
and its significance are not clear.

35
Pebble Primary D3 Fault Gouge
Conglomerate Shear Plane (Sericite Alteration)

Foliated Fault Gouge Secondary D3 Shear Plane

(Sericite Alteration) Showing Quartz Slickencrysts


with Hematite Infiltration
10 cm
along Shear Plane

Photo 12: D3 shear showing sharp shear contact between relatively undeformed pebble
conglomerate in the hangingwall and foliated / unfoliated fault gouge in the footwall (TRD-098
55.0-55.4).

Litharenite Hematite
(Sericite Mineralisation 8 cm
Alteration) Along Fractures

Weakly Brecciated Quartz


Vein with Weak Hematite
Mineralisation Q2 Q1
Q3

Q3

Hematite
Mineralisation and Shear Plane (visible
Sericite Alteration of movement is post- Litharenite
Gouge Along Shear brecciation of the
Plane quartz vein )

Photo 13: D3 shear plane associated with a brecciated quartz vein. There is evidence for
three quartz vein events (Q1 oldest, Q3 youngest) and that movement and hematite
mineralisation along the shear plane continued after brecciation and hematite mineralisation
of the main vein Q2 (TRD-077 225.0-225.5).
5 cm

Photo 14: Close up of shear plane and associated hematite mineralisation and
sericite alteration in Photo 13 (TRD-077 225.0-225.2).

8 cm

Photo 15: Brecciated quartz vein with hematite-quartz-arsenopyrite-gold mineralisation along


brecciation planes. Visible gold is circled and is always associated with hematite (TRD-051
422.3-422.8).
4 cm

H-Q1

H-Q3
H-Q3

H-Q2

H-Q2

Photo 16: Litharenite showing three phases of hematite-quartz-arsenopyrite-gold veining during


brecciation: H-Q1 oldest; H-Q3 youngest. Pale sericite alteration is visible proximal to the veins.
Movement on fractures indicated. (TRD-051 435.7-435.8)

Photo 17: Gold panned from crushed debris taken from the sericite alteration
zone in the hangingwall of the Trinidad-Manganeso Thrust-reverse Fault in the
Trinidad area.
3 cm

Q2 Q1
Q2

Sericite
Hematite
Q3 Alteration
after
Hematite With
pyrite?
Hematite
Veining /
Infiltration
Q2

Photo 18: Quartz vein system in fracture zone affected by folding, brecciation and hematite
mineralisation. An early quartz vein (Q1) has been folded with antiformal tension forming fractures
infilled by a later quartz vein system (Q3). The main quartz vein (Q2) shows distinct hematite filled
fracture planes along its edge. The host rock has been strongly altered to sericite. (TRD-098 86.71-
86.84)
6.0 CONCLUSIONS

This study has defined the structural controls which have influenced the timing and
distribution of gold mineralisation and has provided a framework in which to undertake
further investigations to identify new targets and further determine the controls on
mineralisation. The following can be reasonably concluded:
a) Economic gold mineralisation is strongly controlled by a listric thrust-reverse shear
system which has formed along a major F3 antiformal hinge. Mineralisation has also
taken place along related D3 imbricate shears developed off the main thrust-reverse
shear, a conjugate set of strike-slip faults and at least one shear (the Veta Cumbrera)
with a backthrust relationship to the main shear. Economic ore shoots favour where
shear movement is concentrated along a single shear (potentially maximising the
extent of the damage zone) and where it is unaffected by strike-slip faulting or major
imbrication (except where the imbrication is along ductile graphitic horizons within
quartzitic sequences thereby significantly reducing the fracture porosity along the
shear).
b) Gold mineralisation is temporally controlled within the D3 deformation phase of
Pitfield et al. An early reverse downthrow to the SSW along the shear developed in
the antiformal hinge zone is followed by conjugate strike-slip faulting trending NNE -
SSW (sinistral) and NW - SE (dextral) with dips typically ranging from 60° to
vertical. Both the thrust-reverse shear system developed in the antiformal hinge zone
and the conjugate strike-slip system have barren quartz mineralisation associated. The
barren quartz veins have been brecciated through later D3 reactivation along both fault
sets and the H-Q-A-G mineralisation is clearly associated in time with this brecciation.
It is possible that the H-Q-A-G mineralisation has occurred in pulses associated with
successive reactivation events within D3. Late D3 thrust-reverse faulting is seen to
displace the H-Q-A-G mineralisation and associated alteration zone thereby
constraining the H-Q-A-G mineralisation within D3.
c) There is a strong spatial association between the thrust-reverse faulting along the D3
antiformal hinge and the H-Q-A-G mineralisation. Currently there is no evidence for
economic gold mineralisation along the conjugate faults except in the vicinity (~100
m) of the TMT. It is thought probable that the TMT reflects displacement in the
basement and that gold mineralisation is sourced from hydrothermal fluids in the
basement that have tracked the thrust-reverse fault upwards. These fluids have then
moved into the superficial conjugate fault system where it abuts the TMT.
d) Specific controls on oreshoots are currently equivocal and there is no convincing
evidence for the controls on the economic concentrations in the Trinidad area beyond
pointing out their obvious spatial association with the area. Hilliard has speculated
about the significance of sinistral strike-slip dilation zones and vertical flattening.
While sinistral folding and dilation associated with oblique-sinistral shear reactivation
of the TMT is likely to be of high importance, further detailed mapping of the
mineralisation zone of the TMT and its extension along strike towards the Gurayos
Thrust is required to define the locations of these zones. In the Trinidad area there
does seem to be an association between vertical flattening of the shear plane to 30°-

40
35° from ~45° and increased gold mineralisation. This may reflect dilation resulting
from strain-hardening related gentle folding along the TMT during early D3
movement. This association does not seem to hold away from the Trinidad area.

7.0 RECOMMENDATIONS

In order to accurately assess the full resource potential in the Dona Amelia Zone and
surrounding areas it is highly recommended to complete basic mapping. The gold
mineralisation has clear D3 structural controls and by accurately mapping the major structure
of the area and the linkages between these structures it should be possible to identify D3
reactivation dilation zones and to assess the controls on the ore shoots. In addition this is
likely to reveal significant new targets. The mapping needs to be focused on accurately
determining basic features such as bedding (differentiating it from the ubiquitous cross-
bedding), way-up, lithology (particularly differentiating between the quartzites, possibly of
the El Colorado Formation, and the arenites of the Bonanza Formation), S3 fabric orientation
and the accurate location of the: TMA, TMT, MQV and H-Q-A-G mineralisation zone. This
will also reveal the location and movements on the unexposed strike-slip faults present. A
rapid mapping technique can be used to test assumptions and quickly define the main
structures present. The key features that need to be assessed to define the structure and
determine the most attractive targets are indicated below:
a) Detailed mapping is needed along the TMT to determine the exact position of the
antiform and the MQV. Particular attention should be paid to where the antiform
appears to cross north of the TMT at Las Rosas and possibly Trinidad. This mapping
is likely to reveal important evidence on local controls of the ore shoots, including the
presence of sinistral strike-slip dilation zones, the location of mineralised imbricate
structures and the effects of strike-slip faulting. It may confirm the presence of major
strike-slip faulting at Las Rosas, which would mean the MQV has been displaced by
up to 900 m to the NNW, possibly presenting a new target. The relationship with the
D3 thrusting and H-Q-A-G mineralisation along-strike from the MQV at Las Rosas
will need explanation in light of the results of the mapping and it is likely to provide
further evidence on the timing of both H-Q-A-G mineralisation and the TMT
reactivation events.
b) The trace of the TMA, TMT and MQV should be mapped as they trend towards Paititi
and their relationship with the Gurayos Thrust and Paititi-Buriti mineralisation needs
to be assessed. Exposure is poor in this area and the laterite may have masked
significant gold mineralisation.
c) The location of a possible major thrust and associated mineralisation along the Central
Valley of the San Simon Plateau needs to be examined. Due to its potential similarity
to the Trinidad area particular attention should be paid to the eastern end of the valley
where the thrust may be folded by a gentle F4 fold.
d) The major siliceous lineament displaying evidence of sinistral shear and extending
with a NNW - SSE trend across the San Simon Plateau to the Gurayos Thrust at Paititi
needs investigation along strike, particularly as it shows similarity in structure to the

41
mineralised Gurayos Thrust at Paititi where quartzite is juxtaposed between two shears
with arenites on either side.
e) The structure, mineralisation and strike continuation of the backthrust orientated Veta
Cumbrera needs assessment to see if it relates to d) and possibly c) above and to
determine its relationship with the major D3 thrusting and mineralisation events.

Respectfully Submitted,

John A. McCurry, Ph.D.


CME & Company

June 23, 2005

42
8.0 REFERENCES

BRULAND, T. and ALLEN, D. G. 2004 Geological and Diamond Drilling Report


San Simon Project, Province of Itenez, Department of Beni, Bolivia for
Eaglecrest Explorations Ltd, January 2004, pp36.

HILLIARD, P. 2004 Structural Geology and Reserves Report on the San Simon
Project, December 2004, pp21.

LITHERLAND, M., ANNELLS, R. N., APPLETON, J. D., BERRANGE, J. P.,


BLOOMFIELD, K., BURTON, C. C. J., DARBYSHIRE, D. B. F.,
FLETCHER, C. J. N., HAWKINS, M. P., KLINCK, B. A., LLANOS, A.,
MITCHELL, W. I., O’CONNOR, E. A., POWER, G., and WEBB, B. C. 1989
The Proterozoic of Eastern Bolivia and its Relationship to the Andean Mobile
Belt, Precambrian Research, 43, 157-184.

PITCAIRN, I. K., ROBERTS, S., TEAGLE D. A. H. and CRAW, D. 2005 Detecting


Hydrothermal Graphite Deposition During Metamorphism and Gold
Mineralisation, Journal of the Geological Society of London, 162, 429-432.

PITFIELD, P. E. J., ANNELLS, R. N., APPLETON, J. D., BORDA, E. F., CORS, F.


Z., DARBYSHIRE, D. B. F., HAWKINS, M. P., LLANOS, A. L., SANDI, R.
B., STEIMBACH, P. M. and TRUJILLO, H. I., 1983 The Geology and
Mineral Potential of the Puerto Villazon area. Eastern Bolivia Mineral
Exploration Project Proyecto Precambrio, Phase 2 (1980-1983), Report No.15,
191pp.

43
9.0 CERTIFICATE

I, John A. McCurry Ph.D., do hereby certify that:


1. I am a member in good standing of the Petroleum Exploration Society of Great Britain
(Registration Number 8074);
2. I am a graduate in geology of Queens University of Belfast, UK (B.Sc Hons., 1983) and
completed my doctorate at the University of St. Andrews, UK (PhD., 1989); and have
practiced in my profession since 1985;
3. Since 1995, I have intermittently been involved in mineral exploration for precious metals
and have undertaken structural studies of precious metal deposits in Ghana
4. I am a Consulting Geologist;
5. The opinions and conclusions contained herein are based on a review of previous records
and data from the San Simon Project and an examination of field exposure and drill core
at the San Simon Concessions;
6. I have visited the San Simon Concessions for 12 days in May 2005 to complete this study;
7. In the disclosure of information relating to legal, title, taxation, environmental, socio-
political and related issues, I have relied on information provided to me by Eaglecrest
Explorations Ltd. and from public domain sources. I disclaim responsibility for such
information. The information referred to is found under Section 3.0;
8. I do not own direct or indirect shares of Eaglecrest Explorations Ltd.
9. I am not aware of any material fact or material change with respect to the subject matter of
this report which is not reflected in this report, the omission to disclose which would make
this report misleading. I reserve the right to amend or withdraw this report if there is a
material change in any of the facts which I have relied upon;
10. I consent to the filing of this report with any stock exchange and other regulatory authority
and the use of this report by Eaglecrest Explorations Ltd. for the purpose of raising
investment capital.

Dated at Aberdeen, UK, this 23rd day of June, 2005

John A. McCurry, Ph.D.

44
APPENDIX I

ABBREVIATIONS AND CONVERSION FACTORS


Appendix I
Abbreviations and Conversion Factors

ABBREVIATIONS

Elements Abbreviations
Ag Silver Az azimuth
As Arsenic $US United States dollars
Au Gold g/t grams per metric tonne
Ca Calcium oz/T troy ounces per ton
Cu Copper tpd metric tonnes per day
K Potassium Eq. Au Gold equivalent
Pb Lead UTM Universal Transverse Mercator
Sb Antimony WGS84 World Geodetic Survey 1984
Zn Zinc °/ ‘ / “ degree/minute/second of arc
Appendix I
Abbreviations and Conversion Factors

CONVERSION FACTORS

Length
1 millimetre (mm) 0.03937 inches (in) 1 inch (in) 25.40 millimetre (mm)
1 centimetre (cm) 0.394 inches(in) 1 inch (in) 2.540 centimetres (cm)
1 metre (m) 3.281 feet (ft) 1 foot (ft) 0.3048 metres (m)
1 kilometre (km) 0.6214 mile (mi) 1 mile (mi) 1.609 kilometres (km)

Area
1 sq. centimeter (cm²) 0.1550 sq. inches (in²) 1 sq inch (in²) 6.452 sq. centimetres (cm²)
1 sq. metre (m²) 10.76 feet (ft²) 1 foot (ft) 0.0929 sq. metres (m²)
1 hectare (ha) (10,000 m²) 2.471 acres 1 acre 0.4047 hectare (ha)
1 hectare (ha) 0.003861 sq. miles (m²) 1 sq. mile (m²) 640 acres
1 hectare (ha) 0.01 sq. kilometre (km²) 1 sq. mile (m²) 259.0 hectare (ha)
1 sq. kilometre (km²) 0.3861 sq. miles (mi²) 1 sq. mile (m²) 2.590 sq. kilometres (km²)

Volume
1 cu. centimetre (cc) 0.06102 cu. inches (in3) 1 cu. inch (in3) 16.39 cu. centimetres (cm3)
1 cu. metre (m3) 1.308 cu. yards (yd3) 1 cu. yard (yd3) 0.7646 cu. metres (m3)
1 cu. metre (m3) 35.310 cu. feet (ft3) 1 cu. foot (ft3) 0.02832 cu. metres (m3)
1 litre (l) 0.2642 gallons (U.S.) 1 gallon (U.S.) 3.785 litres (l)
1 litre (l) 0.2200 gallons (U.K.) 1 gallon (U.K.) 4.546 litres (l)

Weights
1 gram (g) 0.03215 troy ounce (20dwt) 1 troy ounce (oz) 31.1034 grams (g)
1 gram (g) 0.6430 pennyweight (dwt) 1 pennyweight (dwt) 1.555 grams (g)
1 gram (g) 0.03527 oz avoirdupois 1 oz avoirdupois 28.35 grams (g)
1 kilogram (g) 2.205 lb avoirdupois 1 lb avoirdupois 0.4535 kilograms (kg)
1 tonne (t) (metric) 1.102 tons (T) (short ton) 1 ton (T) (short ton) (2000 lb) 0.9072 tonnes (t)
1 tonne (t) 0.9842 long ton 1 long ton (2240 lb) 1.016 tonnes (t)

Miscellaneous
1 cm/second 0.01968 ft/min 1 ft/min 50.81 cm/second
1 cu. m/second 22.82 million gal/day 1 million gal/day 0.04382 m3/second
1 cu. m/minute 264.2 gal/min 1 gal/min 0.003785 m3/minute
1 g/cu. m 62.43 lb/ cu. ft 1 lb/cu. ft3 0.01602 g/m3
1 g/cu. m 0.02458 oz/cu. yd 1 oz/cu. yd 40.6817 g/m3
1 Pascal (Pa) 0.000145 psi 1 psi 6985 Pascal
1 gram/tonne (g/t) 0.029216 troy ounce/ short ton (oz/T) 1 troy ounce/short ton (oz/T) 34.2857 grams/tonne (g/t)
1 g/t 0.583 dwt/short ton 1 dwt/short ton 1.714 g/t
1 g/t 0.653 dwt/long ton 1 dwt/long ton 1.531 g/t
1 g/t 0.0001 %
1 g/t 1 part per million (ppm)
1% 10,000 part per million (ppm)
1 part per million (ppm) 1,000 part per billion (ppb)
1 part per billion (ppb) 0.001 part per million (ppm)

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