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Technical Report
Los Verdes Project
Sonora, Mexico
Prepared for
Virgin Metals, Inc.
29 February 2008
067571
Prepared by
Chlumsky, Armbrust and Meyer, LLC
Fred Barnard, PhD.

Robert Sandefur, P.E.
200 Union Boulevard, Suite 430

Lakewood, Colorado 80228
Telephone: (303) 716-1617
Fax: (303) 716-3386
TABLE OF CONTENTS
Page No.
Section
1.0 SUMMARY ............................................................................................................. 1

1.1 Background ................................................................................................. 1
1.2 Property Description and Ownership .......................................................... 1
1.3 Location, Infrastructure, and Physiography ................................................ 1
1.4 Geology and Mineralization ....................................................................... 2
1.4.1 Geology ........................................................................................ 2
1.4.2 Mineralization............................................................................... 2
1.5 Exploration and Data Compilation ............................................................. 3
1.5.1 Exploration ................................................................................... 3
1.5.2 Data Compilation and Verification ............................................... 4
1.5.3 Bulk Density (Specific Gravity) of Mineralization ...................... 5
1.6 Metallurgical .............................................................................................. 5
1.7 Resource Estimation ................................................................................... 5
1.7.1 Resource Tabulation ..................................................................... 6
1.8 Conclusions and Recommendations ........................................................... 7
1.8.1 Conclusions .................................................................................. 7
1.8.2 Recommendations ........................................................................ 8
2.0 INTRODUCTION ................................................................................................... 10
2.1 Sponsorship and Use ................................................................................... 10
2.2 Qualified Persons ........................................................................................ 10
2.3 Sources of Information ............................................................................... 11
2.4 Conventions ................................................................................................ 11
3.0 RELIANCE ON OTHER EXPERTS ...................................................................... 12
4.0 PROPERTY DESCRIPTION AND LOCATION ................................................... 13
4.1 Ownership ................................................................................................... 13
4.2 Mineral Properties ....................................................................................... 13
4.3 Environmental Issues .................................................................................. 16
5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES,
INFRASTRUCTURE, AND PHYSIOGRAPHY .................................................... 17
5.1 Access, Physiography, and Climate ............................................................ 17
5.2 Local Resources and Infrastructure............................................................. 17
6.0 HISTORY ................................................................................................................ 20
6.1 Prior Exploration, Development, and Production ....................................... 20
6.1.1 Cominco exploration .................................................................... 21
6.1.2 1996-2005 exploration .................................................................. 21
6.1.3 Virgin Metals – MAS exploration ................................................ 21
6.2 Historical Mineral Resources ...................................................................... 21
7.0 GEOLOGICAL SETTING ...................................................................................... 23
7.1 Regional Geology ....................................................................................... 23
7.2 Local Geology............................................................................................. 24
7.3 Property Geology ........................................................................................ 25
7.3.1 Granitic intrusives......................................................................... 26
7.3.2 Breccias ........................................................................................ 26
7.3.3 Dikes ............................................................................................. 27
7.3.4 Structure ...................................................................................................... 28
7.3.5 Alteration .................................................................................................... 28
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TABLE OF CONTENTS
Page No.
Section
8.0 DEPOSIT TYPES .................................................................................................... 30

9.0 MINERALIZATION ............................................................................................... 31
9.1 Style of mineralization ................................................................................ 31
9.1.1 Hypogene mineralization (Sulfide Zone) ..................................... 32
9.1.2 Secondarily-enriched mineralization (Mixed Zone) ..................... 32
9.1.3 Oxide mineralization (Oxide Zone) .............................................. 33
9.2 Mineralogy .................................................................................................. 33
9.3 Morphology of Mineralization .................................................................... 36
10.0 EXPLORATION...................................................................................................... 39
11.0 DRILLING ............................................................................................................... 41
11.1 Summary of drilling .................................................................................... 41
11.2 Cominco-Peñoles Drilling Program, 1971-1979......................................... 42
11.3 MAS Drilling Programs .............................................................................. 42
11.3.1 2007 Reverse Circulation Drill Program ...................................... 43
12.0 SAMPLING METHOD AND APPROACH ........................................................... 45
12.1 Cominco-Peñoles Sampling ........................................................................ 45
12.2 Virgin Metals Sampling .............................................................................. 45
12.3 Bulk Density (Specific Gravity) of Mineralized material ........................... 45
12.3.1 Bulk Density Measurements ......................................................... 45
12.3.2 Analysis of Bulk Density Data ..................................................... 46
12.3.3 Discussion of Bulk Density .......................................................... 47
13.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY ............................... 48
13.1 Cominco exploration ................................................................................... 48
13.2 Virgin Metals exploration ........................................................................... 48
13.2.1 Sample Preparation ....................................................................... 48
13.2.2 Sample Analysis ........................................................................... 48
13.2.3 QA/QC (Quality Assurance/Quality Control) .............................. 49
13.3 Adequacy of Procedures ............................................................................. 51
14.0 DATA VERIFICATION.......................................................................................... 52
14.1 Peñoles-COMINCO data ............................................................................ 52
14.1.1 Database ....................................................................................... 52
14.1.2 Collars........................................................................................... 53
14.1.3 Assays ........................................................................................... 53
14.1.4 Comparison of Cominco and VM-MAS Drilling ......................... 54
14.1.5 Suitability of the COMINCO database ......................................... 54
14.2 VM-MAS 2006 drilling .............................................................................. 55
14.3 VM-MAS 2007 drilling .............................................................................. 55
14.3.1 Initial data checks ......................................................................... 55
14.3.2 Downhole Surveys........................................................................ 57
14.4 Final database used for Resource Estimation ............................................. 57
15.0 ADJACENT PROPERTIES .................................................................................... 59
16.0 MINERAL PROCESSING AND METALLURGICAL TESTING ........................ 60
17.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ................... 62
17.1 Geological Modeling .................................................................................. 62
17.1.1 Block-Model Construction ........................................................... 62
17.1.2 Block-Model Validation ............................................................... 63
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TABLE OF CONTENTS
Page No.
Section
17.1.3 SAM Contact Profiles ................................................................... 63

17.2 Topography and Block Model Limits ......................................................... 64
17.3 Desurvey ..................................................................................................... 65
17.4 Statistics and Geostatistics .......................................................................... 65
17.4.1 Compositing and Composite Statistics ......................................... 65
17.4.2 High-Grade Restriction................................................................. 66
17.4.3 Geostatistics .................................................................................. 68
17.4.4 Resource Estimation ..................................................................... 68
17.4.5 Resource Classification ................................................................ 68
17.4.6 Resource Tabulation ..................................................................... 70
17.5 Mineral Reserves ........................................................................................ 71
18.0 OTHER RELEVANT DATA AND INFORMATION............................................ 72
19.0 ADDITIONAL REQUIREMENTS FOR TECHNICAL
REPORTS ON DEVELOPMENT PROPERTIES AND
PRODUCTION PROPERTIES ............................................................................... 73
20.0 INTERPRETATION AND CONCLUSIONS ......................................................... 74
21.0 RECOMMENDATIONS ......................................................................................... 75
22.0 REFERENCES ........................................................................................................ 77
23.0 DATE AND SIGNATURE PAGE .......................................................................... 78
23.1 Certificate of Author Fred Barnard ............................................................. 78
23.2 Certificate of Author Robert Sandefur ........................................................ 80
APPENDIX - A
Tables
1-1 Mineral Resource Estimates (Derived values in the table have been rounded) ....... 7
1-2 Recommended Los Verdes work program for 2008 ................................................ 9
4-1 MLV-MAS concessions in Los Verdes Project ....................................................... 13
6-1 History of Los Verdes Area ..................................................................................... 20
6-2 Resources at a 0.04 percent Mo Cutoff and/or a 0.32 percent Cu Cutoff ................ 22
9-1 Selected minerals of interest, Los Verdes deposit ................................................... 34
10-1 2007 Los Verdes Project Expenditures .................................................................... 39
11-1 Summary of drilling. ................................................................................................ 41
12-1 Bulk Density Statistics by Mineral Zone ................................................................. 47
13-1 Metal Contents of Commercial Standards ............................................................... 50
13-2 Anomalies in QA/QC Checks .................................................................................. 50
14-1 Comparison of Samples within 7.5 meters .............................................................. 54
14-2 Drilling Statistics from Assay Database .................................................................. 57
17-1 Model Geometric Parameters................................................................................... 65
17-2 Statistics for 5-meter composite samples. ................................................................ 66
17-3 Mineral Resource Estimates..................................................................................... 70
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TABLE OF CONTENTS
Page No.
Figures
4-1 Molibdeno Los Verdes Alamos Concessions - Los Verdes ..................................... 15

5-1 Location of Los Verdes Property ............................................................................. 18
7-1 Geological Setting of Los Verdes Property ............................................................. 23
7-2 Geology of Los Verdes and Surroundings ............................................................... 25
9-1 Surface projection of SAM (Sulfide and Mixed) boundary ..................................... 36
9-2 Cross Section through the Mineralized Lens, west of the center ............................. 37
9-3 Cross section through the mineralized lens, east of the center................................. 38
11-1 Drillhole locations at Los Verdes............................................................................. 42
12-1 SG Data Cumulative Frequency .............................................................................. 46
17-1 Box plot for Mo vs. Distance from Contact ............................................................. 63
17-2 Box plot for Cu vs. Distance from Contact .............................................................. 64
17-2 Log Cumulative Frequency Plot (Mo ppm) ............................................................. 67
17-3 Log Cumulative Frequency Plot (Cu ppm) .............................................................. 67
17-4 Omnidirectional Relative Variogram Mo (from log) for SAM................................ 69
17-5 Omnidirectional Relative Variogram Mo (from log) for Oxides ............................. 69
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43-101F1 Table of Contents Reference
Reference Item in this Report
Item 1. Title Page ........................................................................................................... Title Page

Item 2. Table of Contents............................................................................................... Table of Contents
Item 3. Summary ............................................................................................................ Sec 1.0
Item 4. Introduction and Terms of Reference ................................................................ Sec 2.0
Item 5. Reliance on Other Experts ................................................................................. Sec 3.0
Item 6. Property Description and Location .................................................................... Sec 4.0
Item 7. Accessibility, Climate, Local Resources, Infrastructure and
Physiography.................................................................................................. Sec 5.0
Item 8. History ............................................................................................................... Sec 6.0
Item 9. Geological Setting ............................................................................................. Sec 7.0
Item 10. Deposit Types .................................................................................................. Sec 8.0
Item 11. Mineralization .................................................................................................. Sec 9.0
Item 12. Exploration ...................................................................................................... Sec 10.0
Item 13. Drilling............................................................................................................. Sec 11.0
Item 14. Sampling Method and Approach ..................................................................... Sec 12.0
Item 15. Sample Preparation, Analyses and Security .................................................... Sec 13.0
Item 16. Data Verification ............................................................................................. Sec 14.0
Item 17. Adjacent Properties.......................................................................................... Sec 15.0
Item 18. Mineral Processing and Metallurgical Testing ................................................ Sec 16.0
Item 19. Mineral Resource Estimate .............................................................................. Sec 17.0
Item 20. Other Data and Relevant Information.............................................................. Sec 18.0
Item 25. Additional Requirements for Technical Reports on
Development Properties and Production Properties ...................................... Sec 19.0
Item 21. Interpretation and Conclusions ........................................................................ Sec 20.0
Item 22. Recommendations ........................................................................................... Sec 21.0
Item 23. References ....................................................................................................... Sec 22.0

Item 24. Date and Signature Page .................................................................................. Sec 23.0
Item 26. Illustrations ...................................................................................................... (See Figures)
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1.0 SUMMARY
1.1 Background
Chlumsky, Armbrust and Meyer, LLC (herein “CAM”) was engaged in January 2008 by Virgin Metals,
Inc. (herein “VM”) of Toronto, a TSX-listed company, to prepare a Technical Report as an independent
review of the geology, methodologies, and mineral Resources at the Los Verdes copper-molybdenum-
tungsten project of VM in Sonora, Mexico, in a manner consistent with Canadian National Instrument
Form 43-101F1 standards.
CAM had previously prepared a 43-101-compliant report, dated 23 January 2007 and filed on SEDAR on
29 January 2007. The present report presents additional data, including 61 additional core and reverse-
circulation holes drilled by VM during 2007, and 1970’s data for 94 COMINCO exploration drillholes
and an adit on the Bacanora concession, which concession was acquired by VM during 2007. A revised
mineral Resource estimate is included in this report.
This report was prepared by Fred Barnard and Robert Sandefur both Qualified Persons. Dr. Barnard
visited the Los Verdes project site on October 29 and 30, 2006, and the Hermosillo office of MAS
Alamos on October 28 and 31, 2006.
All references to dollars ($) in this report are in US dollars unless otherwise noted. Distances, areas,
volumes, and masses are expressed in the metric system unless indicated otherwise.
1.2 Property Description and Ownership
Virgin Metals Inc. is the 100 percent owner of Minera Alamos de Sonora, S.A. de C.V. (MAS) and
Molibdeno Los Verdes S.A. de C.V. (MLV), both Mexican companies. MLV has been assigned 100
percent of the title to the mineral properties at Los Verdes from MAS, which is carrying out the
exploration. The mineral rights controlled by MLV total 15 contiguous titled exploration concessions,
covering 5559.1 hectares. Neither MAS nor MLV currently owns any surface rights in the area.
VM’s concessions cover the entire mineralized area discussed in this report, there being no competitor
concessions within a kilometer of the mineralized area.
1.3 Location, Infrastructure, and Physiography
The Los Verdes Property is located in the municipality of Santa Ana de Yecora, State of Sonora, Mexico,
about 200 kilometers east-southeast of Hermosillo. The longitude is 109O 10' W, latitude 28 O 24' N. The
Los Verdes property can be reached via paved Mexico Federal Highway 16, thence on a dirt road of about
9 kilometers length.
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The Property lies in ruggedly corrugated mountains of the Sierra Madre Occidental, 740 to 1200 meters
above sea level. The climate is subtropical, with no extremes of climate which would impair year-round
mining operations. The vegetation is scrubby thorn forest.
Yecora, 40 kilometers east of Santa Ana, is a ranching town with a population of about 5,000, with basic
services such as telephone, internet, motels, restaurants, a health clinic, hardware stores, gasoline, etc.
Santa Ana, 2 kilometers from the drilled Resource, has a population of perhaps 300 people and almost no
services except basic groceries. There are very few outlying residences, and none within the MAS
drilling program and Resource area.
1.4 Geology and Mineralization
1.4.1 Geology
Los Verdes lies within what could be considered the southerly extension of the Basin and Range province
of the southwestern USA, near the boundary with the Sierra Madre Occidental province (Figure 9-1). The
units in southeastern Sonora of principal interest to Los Verdes are the Laramide (Late Cretaceous to
Early Tertiary) plutonic, subvolcanic, and volcanic rocks, especially the felsic units.
The Los Verdes deposit is within a sub-circular granitic pluton exposed over some 150 square kilometers
in the vicinity of Santa Ana. The intrusive has several facies, mainly weakly porphyritic monzonite, with
some exposures classed as granodiorite and quartz diorite. Lesser areas of K-spar porphyry also occur.
The Los Verdes properties cover one-third of the Laramide intrusive. About 20 percent of the area is
underlain by alteration zones, including a large north-south ellipse of alteration extending northward from
Santa Ana. Several large patches of breccia occupy the central part of the property, within a granodiorite
pluton. The Moly Pit occurs within one of these, a quartz-tourmaline breccia. The granodiorite locally
shows potassic, phyllic, or argillic alteration.
1.4.2 Mineralization
Los Verdes contains molybdenum-copper-(tungsten) mineralization in stockworked granodiorite and in

associated quartz-tourmaline breccias. It is a porphyry copper-molybdenum system with a related
molybdenum-bearing breccia pipe. At depth, the stockwork veinlets and breccias contain molybdenite,
chalcopyrite, lesser amounts of bornite, tungsten and base-metals minerals, and pyrite and quartz. At
higher levels these primary sulfide minerals may be overprinted or replaced by secondary minerals:
chalcocite, malachite, azurite, and ferrimolybdite. The surficial oxide zone of the deposit is characterized
by ferrimolybdite with very low copper values.
Related Mo-Cu-(W) deposits occur at many localities in the American Cordillera, especially in Arizona,
Sonora, and Chile. Examples in Sonora include the La Colorado pipe (Cu-Mo) at Cananea, the Pilares
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pipe (Cu-Mo) at Nacozari, the San Judas, Cobre Rico, Washington, and El Transval breccias (Cu-Mo-W)
at Cumobabi, and the El Creston breccia (Mo-Cu-W) at Opodepe.
The deposit forms a sub-circular, subhorizontal, lens-shaped body about 200 by 300 meters across, and up
to 200 meters thick. It underlies the ridge west of the Moly Pit. The Buena Vista Fault forms a partial
boundary of mineralization, although some lesser mineralization extends east of the fault.
Vertical zonation in the deposit, as confirmed by MAS drilling, is as follows:

1. An upper part of the Oxide Zone, 0 to 20 meters thick and sub-parallel to the surface, with very
low Cu values (<500 ppm), and low Mo and W values.
2. An Oxide Zone with secondary minerals (copper carbonates, chalcocite, ferrimolybdite, and
probably ferritungstite), 10 to 50 meters thick, and conforming loosely to the current
topography. Essentially all the Mo in the oxide zone is soluble Mo (i.e. ferrimolybdite),
whereas almost all the Mo below the Oxide Zone is in molybdenite.
3. Supergene mineralization with secondary enrichment of chalcocite as well as hypogene
molybdenite, wolframite, and pyrite, referred to as the Mixed Zone. Beneath the ridgecrest, this
mineralization may be over 100 meters thick. Supergene-enriched mineralization makes up the
bulk of the Resource at Los Verdes.
4. The lowest mineralized zone is hypogene protore, referred to as Sulfide Zone, or alternatively as
“Granodiorite”. It carries pyrite, chalcopyrite, molybdenite, and sparse scheelite. Within the
breccia, molybdenite forms coarse-grained euhedral rosette penetrating into voids, whereas in
the granodiorite molybdenite is mostly fine-grained, and is related to veinlets.
The supergene and hypogene protore together make up SAM (Sulfide and Mixed Zones), which carry the
higher-grade mineralization at Los Verdes.
1.5 Exploration and Data Compilation
1.5.1 Exploration
Further to the VM exploration drilling reported in the 2007 Technical Report, during 2007 MAS drilled
21 diamond core holes of HQ diameter, totaling 2,628.2 meters, and 40 reverse-circulation holes, totaling
3,537.7 meters. Core recovery was greater than 95 percent.
QA/QC for VM’s 2007 drilling program was specifically designed to meet NI-43-101 guidelines, and was
overseen by Doug Hartzell, a consulting geologist and Qualified Person of Reno, Nevada, on behalf of
Mine & Quarry Engineering Services, Inc. of San Mateo, California. No sample preparation or assaying
of samples was carried out by any employee, officer, director, or associate of Virgin Metals or affiliates.
The RC samples, each representing 1.52 linear meters (5 feet), were riffle-split at the drill.
Approximately 1/8 of the recovered material (5 to 10 kg.) placed in a plastic bag and immediately
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fastened with a security tag. Where moisture was present, a sampling cyclone was utilized with drill
cuttings collected in buckets, then placed in a large porous bag and immediately fastened with a security
tag. Reject material for all samples have also been secured and stored on-site for future use. Diamond
core was sent whole to the assay laboratory, after being logged and photographed. MAS inserted on-site
one blank sample for every 20 drill samples, and a field duplicate sample was inserted for every 20 RC
drill samples.
Sample preparation was performed at the ALS Chemex laboratory in Hermosillo, and all assaying was
carried out at the ALS Chemex laboratory in Vancouver, BC. ALS is certified ISO 9001:2000 and ISO
17025:2005 at all its facilities, including Hermosillo and Vancouver. The method used for the analyses
was ALS’ ME-ICP61 package for 27 elements, comprising four-acid digestion followed by ICP analysis
of the solute. Samples showing more than 10,000 ppm Cu by ICP analysis were additionally analyzed by
three-acid (hydrofluoric, nitric, perchloric) digestion, followed by hydrochloric acid leach, and atomic-
absorption analysis of the leachate.
In addition to the routine quality control work carried out by ALS Chemex, Virgin Metals established a
quality-control protocol consisting of the routine use of sample duplicates, blank samples, and certified
assay standards for copper and molybdenum. The certified standards were obtained from WCM Sales
Ltd., Burnaby B.C., and for tungsten, obtained from Shea Clarke Smith in Reno, Nevada. All of the
QA/QC data for the Virgin drilling were reviewed by a CAM using various geostatistical parameters.
CAM believes that the sampling, sample preparation and assaying were carried according to a high
standard and with a sufficient level of security, that the integrity of samples and the quality of results are
assured.
1.5.2 Data Compilation and Verification
During 2007, MAS acquired drill logs and assays from a Peñoles-COMINCO drilling campaign from
1971-1979, which had previously been unavailable. There were 63 holes totaling more than 12,000
meters within the Los Verdes mineralized area in this data (a few holes had incomplete data). No samples
or geological reports were available from this period. CAM reviewed the historical COMINCO data in
detail, and performed a number of tests to validate this database. On the basis of this review, and the
comparison of the Cominco data to VM drilling data, CAM believe the COMINCO database as verified,
is suitable for the calculation of a 43-101-compliant Resource.
CAM checked a sample of the VM drilling data, and also applied numerous well-known geostatistical
tests to the VM data, and to the combined COMINCO-VM database. CAM is of the opinion that the
combined database is suitable for Resource estimation, and for use in feasibility studies and financial
decisions.
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1.5.3 Bulk Density (Specific Gravity) of Mineralization
In 2007, MAS developed a protocol for determining bulk densities on new core samples, and made 1302
bulk-density determinations on core. The mean bulk densities (specific gravities as g/cm3) determined
were 2.406 for SAM, 2.239 for Oxide, and 2.426 for material outside the defined volumes. These results
are lower than those used in the previous Resource estimation (CAM, 2007), but are based on much better
information from a dedicated bulk-density measurement program.
1.6 Metallurgical Data
Metallurgical test work has been carried out on drill chips of SAM from reverse circulation drilling at the
labs of RDI in Denver and on drill core at the labs of G and T Metallurgical Labs in Kamloops, B.C.
Both sets of tests demonstrate recoveries between 85 and 90% of copper and molybdenum to a bulk
flotation concentrate, at grinds between 100 and 150 microns. Regrinding and cleaning the bulk
concentrate can produce copper grades suitable for a saleable copper concentrate, as well as a saleable
molybdenum concentrate containing greater than 50% Mo.
Gravity testwork on flotation tailings indicated the potential to recover a concentrate of the tungsten-
bearing minerals scheelite and wolframite. Further work is required to determine whether a saleable
tungsten concentrate can be recovered.
Nearly all the Mo in the oxide zone is in the form of oxides, mainly ferrimolybdite, Fe2(MoO4)3·8(H2O),
whereas essentially all Mo in the supergene and deeper zones (SAM) is in the form of molybdenite MoS2.
The potential for recovery of ferrimolybdite will be investigated during 2008.
1.7 Resource Estimation
The database used for Resource estimation contained 171 drillholes (including 2 adit segments considered
as drillholes), totaling 20,514 meters, and 11,930 Mo assays, as well as assays for Cu, W, and Ag.
Cross-sections were prepared, showing drillholes and interpreted mineral zones, trending both northwest
and northeast. Any differences between the computerized drillhole database and the drillholes shown on
these sections were resolved, so that the revised mineralized shapes match the computerized database.
The sections were then resolved to a series of level plans.
Blocks associated within each 10 m plan-interpreted level were assigned to SAM.. Any blocks above the
highest SAM were assigned to Oxide. Two smaller zones below the main SAM which contained good-
grade mineral were also interpreted. These two zones contained only a small number of composites, and
have been categorized as Inferred Resources.
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Because molybdenum is the primary economic element, accounting for approximately two-thirds of the
deposit value a single SAM volume was used for purposes of resource estimation, rather than separate
volumes for molybdenum and copper. Within this volume it appears that molybdenum grade is quite
homogeneous and is characterized by hard boundaries. Because of uncertainty in the location of the SAM
contact for molybdenum due to some downhole-survey anomalies, it is not yet possible to precisely
calculate the volume of SAM.
The assay database was composited to 5-meter length composites (2.5 meters minimum length) and a
mineral zone code assigned from the mineral zone model based on the 5 by 5 by 5-meter block within
which the centroid of the composite fell. Analysis of cumulative frequency plots for Mo and Cu
composites shows that there is no need to cap composite grades prior to Resource estimation.
Resource estimation was done by ordinary kriging, using the relative variograms with hard boundaries
separating mineralization groups. The search radius was 100 meter, with a maximum of eight and a
minimum of three composites required for estimation for SAM, Oxide and the two smaller zones.
Outside of these interpreted zones a sector search was used, the sectors corresponding to the face of a
cube, with a maximum of two composites per sector.
1.7.1 Resource Tabulation
CAM classified blocks in the SAM and Oxide volumes as Measured if within half of the range of the
variogram, and if interior to drilling in the interpreted shape for SAM and Oxide. Blocks not interior to
the drilling, or between 0.5 and 1 times the variogram range from the nearest sample point, were
classified as Indicated. The remaining blocks were classed as Inferred if they were within 30 meters of
the nearest sample point and if the block was estimated by least 4 drill holes. Within the SAM and Oxide
there is considerable drilling and no Inferred blocks.
Definitions used in this section are consistent with those adopted by the Canadian Institute of Mining,
Metallurgy and Petroleum ("CIM") Council in December 2005, as amended, and prescribed by the
Canadian Securities Administrators' National Instrument 43-101 and Form 43-101F1, Standards of
Disclosure for Mineral Projects.
Resources were tabulated at various cutoff grades using the densities of 2.406 for SAM, 2.239 for oxide,
and 2.426 for material outside the defined volumes. Table 1-1 presents the Resource as calculated by the
ordinary kriging method, at a cutoff grade of 0.03 percent molybdenum equivalent, with copper valued at
1/10 molybdenum.
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Table 1-1
Mineral Resource Estimates
(Derived values in the table have been rounded)
Contained Contained
Tonnes % Mo % Cu
lbs Mo lbs Cu
Non-Oxide Mineralization
Measured Resources 4,396,000 0.133 0.684 12,897,000 66,277,000
Indicated Resources 4,269,000 0.128 0.516 12,015,000 48,529,000
Total 8,665,000 0.130 0.601 24,912,000 114,806,000
Oxide Mineralization
Total 4,409,000 0.077 0.093 7,506,000 9,038,000
Oxide and Non Oxide Mineralization
Total Measured
7,088,000 0.110 0.458 17,103,000 71,556,000
Resources
Total Indicated
5,986,000 0.116 0.396 15,315,000 52,288,000
Resources
Total Measured and
13,074,000 0.113 0.430 32,418,000 123,844,000
Indicated Resources
Total Inferred
4,392,000 0.063 0.073 6,062,000 7,058,000
Resources
CAM are of the opinion that the Resource estimates presented above are fully compliant with NI 43-10,
and are suitable for use in feasibility studies to define mineral Reserves. No Reserves have been defined
in this report.
1.8 Conclusions and Recommendations
1.8.1 Conclusions
1. Mineralization at Los Verdes is hosted in a granodiorite cut by veins, stockworks, and

tourmaline-bearing breccias, similar to other copper-molybdenum systems in Sonora.
2. The drilling program carried out during 2006 and 2007 was successful in meeting the original
objective of defining a Resource of Mo-Cu-(W) mineralization of considerable economic
interest, and in confirming the validity of historic 1970’s drilling.
3. The sampling database is of sufficient quality and quantity to define NI 43-101-compliant
mineral Resources.
4. Metallurgical tests indicate that conventional flotation of sulfide mineralization can potentially
produce marketable concentrates of molybdenum, copper and possibly tungsten.
5. A considerable resource of oxide molybdenum (ferrimolybdite) mineralization exists, which has
economic potential and needs further metallurgical evaluation.
6. The Los Verdes property shows considerable economic potential, and is deserving of a
Prefeasibility Study, which would likely be followed by a full-blown Feasibility Study
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1.8.2 Recommendations
1. 1. The Los Verdes deposit merits further evaluation. Continued work is recommended to
complete a Prefeasibility Study, and thereafter a Feasibility Study for production of the sulfide
copper-molybdenum Resource at Los Verdes. The recommended work is described in the
Work Program in Table 21-1, below, to be carried out during the last 3 quarters of 2008. This is
a single-phase program, as the property clearly demonstrates economic potential.
2. Investigation of the groundwater supply should continue.
3. An Environmental Impact Statement should be completed, and the process of applying for
4. Operating permits should commence.
5. Some anomalies in downhole surveys preclude defining the exact margins of the highly-
mineralized Sulfide and Mixed Zone (SAM), and hence the ultimate pit limits. Before a final
pit design is done it will be necessary to drill several holes (CAM estimates from 10 to 15) and
survey these using gyroscopic methods of demonstrated reproducibility to define the final non-
mineral mineral contact.
6. Metallurgical testing is needed to improve existing data on copper and molybdenum recoveries
and production of marketable concentrates.
7. A considerable tonnage of oxide mineralization contains molybdenum oxide (ferrimolybdite) at
a potential value at current prices in excess of $50 dollars per tonne, and probably not amenable
to flotation. CAM recommends that alternative metal recovery technology for this material be
examined. The oxide material would have to be mined in any case, in order to access the
underlying Mixed and Sulfide mineralization.
8. Additional core samples are needed to obtain added molybdenum-oxide mineralization for
metallurgical tests. Most of these holes could be those referred to in 4), above.
9. Investigation of the nature and validity of historic (Cominco) assays for tungsten should be
carried out, as well as additional metallurgical tests on tungsten recovery, so that accurate
tungsten values can be verified, and value assigned to tungsten in the Feasibility Study.
10. CAM recommends that sample preparation for the field duplicates be reviewed to see if a finer
crush or larger sample size can reduce the number of anomalous values found in QA/QC
checks.
11. CAM recommends that two of the drill holes with precise downhole surveys be twinned by
either RC or diamond to determine if the bias observed by CAM in RC versus diamond holes
actually exists.
12. The deposit contains silver and tungsten at grades that may be of economic interest as
byproducts. As far as is known Cominco did not assay for silver, and the Cominco assays for
tungsten were expressed as WO3. Because of time constraints, tungsten and silver was not
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included in this resource estimate. CAM recommends that both tungsten and silver be included
in future Resource estimates.
13. Coherent and uniform electronic database, probably in Microsoft access, should be compiled for
use in future Resource estimation work. This compilation is largely a clerical/technical job, but
needs proper geological supervision.
14. All of the metallurgical test work to date has been on composites, so a single volume containing
mixed and sulfide within the SAM is consistent with current data. However, if additional
metallurgical testing indicates differences between mixed (i.e. with chalcocite) and hypogene
(i.e. chalcopyrite and bornite) sulfides, an interpretation of the differences between these two
mineral types may be required. CAM recommends additional interpretation, if warranted, as the
project proceeds.
15. The Work Program shown in Table 1-2 needs to be funded.
Table 1-2
Recommended Los Verdes work program for 2008
Timing, 2008
Category Activity Objective Amount Unit Cost Cost, $US
(last 3 Quarters)
Mapping/ Determine $500
Geology 60 sq km $30,000 X
Prospecting district potential per sq km
Core Drilling Refine pit limits 600 m $ 100/m $ 60,000 X
Metallurgical
Drilling Core Drilling 400 m $ 100/m $ 40,000 X
samples
Geologist Drill geology 2 months $ 3000/mo $ 6,000 X
Measure
$ 15,000
Laboratory recovery from
Metallurgy 3 campaigns per $45,000 X X
tests sulfide and
campaign
oxide ores
Determine
Engineering Prefeasibility
project 2000hrs contract $ 1,000,000 X X
and design Study
economics
EIS Complete EIS contractor n/a $ 20,000 X X
Environmental Submit permit
Permitting contractor n/a $ 20,000 X X X
applications
Drill and flow
Infrastructure Water drilling contractor estimate $ 50,000 X
test wells
surface
Surface rights purchase or
Property 400 ha $ 300/ha $ 120,000 X X
acquisition lease from
ejido
TOTAL: $1,391,000
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2.0 INTRODUCTION
2.1 Sponsorship and Use
Chlumsky, Armbrust and Meyer LLC (herein “CAM”) was engaged in late 2007 by Virgin Metals, Inc.
(herein “VM”) of Toronto to prepare a Technical Report, as an independent review of the geology,
methodologies, and mineral Resources at the Los Verdes copper-molybdenum-tungsten project of VM, in
a manner consistent with Canadian National Instrument Form 43-101 F1 standards. Some
recommendations are also included. The Los Verdes property in Sonora, Mexico is controlled by VM’s
wholly-owned Mexican subsidiary, Minera Alamos de Sonora, S.A. de C.V. (herein “MAS”). The report
may be used in conjunction with listings of securities by Virgin Metals on Canadian exchanges.
CAM had prepared in January 2007 a 43-101-compliant report on the property (CAM, 2007). The current
report is an update, with major differences from the 2007 report due mainly to –
• Titling during 2007 of three exploration concession applications;
• VM’s acquisition of the Bacanora concession in 2007;
• VM’s acquisition of earlier drilling data relating to the Bacanora concession;
• Drilling of 61 diamond core and reverse-circulation holes by VM during 2007;
• Receipt of initial metallurgical testing on sulfide mineralization, and
• Completion of over 1,300 bulk-density measurement on new drill core.
2.2 Qualified Persons
This report was prepared by Fred Barnard, Ph.D. Geology, and Robert Sandefur, P.E., both Qualified
Persons as defined by NI 43-101, with input by other individuals listed in Section 3.0.
CAM’s representative (Barnard) visited the Los Verdes project site on October 29 and 30, 2006, and the
Hermosillo office of Minera Alamos on October 28 and 31, 2006, during the preparation of an earlier 43-
101 report on the property (CAM, 2007). That field visit included the old Moly Pit excavation, the
western tunnel being rehabilitated at the bottom of the pit, and the ridge west of the open pit including the
collar areas of new drillholes LV-01, 02, 03, and others west of the Buena Vista Fault. The reverse-
circulation drill was witnessed in operation on hole LVRC-3906 just outside the current Resource area,
and a visit was made to the sample-storage building in the town of Santa Ana, as well as a visit to ALS’s
Hermosillo laboratory on October 31, 2006
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2.3 Sources of Information
Information for this report was obtained from 1) a Technical Report prepared in 2005 by Sears, Barry
documents; 2) a Technical Report prepared in 2007 by CAM; 3) reference to published literature; 4) data
provided by VM and MAS personnel; and 5) observations made on-site by CAM. Major sources are
listed in Section 23, References.
2.4 Conventions
All references to dollars ($) in this report are in US dollars unless otherwise noted. Distances, areas,
volumes, and masses are expressed in the metric system unless indicated otherwise
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3.0 RELIANCE ON OTHER EXPERTS
Other persons beside the undersigned provided data for this report. These include Gary Lohman, who is
Virgin Metals’ Chief Geologist and a registered Professional Geologist and Qualified Person (QP) as
defined by NI 43-101 of the Canadian Securities Administrators; and Mr. Keith Brogoitti, VM Operations
Manager. These two people provided much of the drilling data database. CAM verified the database (see
Section 14.0), utilizing among other the services of Linda Hadley, a degreed geoscientist who specializes
in verifying of legacy drilling databases.
In addition, discussions were held in Mexico and electronically with VM and MAS personnel Chris
Davie, CEO of VM, Javier Castano, MAS Project Geologist; Macario Mendoza, MAS Geologist; Alonso
Daco, consulting geologist, and others. On October 31, the undersigned visited the sample-preparation
facility of ALS Laboratorios de Mexico, to review the samples-preparation procedures with Mr. Marco
Gammon of ALS.
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4.0 PROPERTY DESCRIPTION AND LOCATION
4.1 Ownership
Virgin Metals Inc. is the 100 percent owner of Minera Alamos de Sonora, S.A. de C.V. (MAS) and
Molibdeno Los Verdes S.A. de C.V. (MLV), both Mexican companies. MLV has been assigned 100
percent of the title to the mineral properties at Los Verdes from MAS, MAS being the operating company
which is carrying out the exploration.
4.2 Mineral Properties
The mineral rights controlled by MLV total 15 contiguous titled exploration concessions, covering 5559.1
hectares. Neither MAS nor MLV currently own any surface rights in the area.
The mineral rights controlled by MAS are enumerated in Table 4-1, and shown in Figures 4-1 and 7-2.
government-published Santa Rosa topographic sheet H12D76. These are fifteen titled exploration
concessions totaling 5,559.1 hectares. All properties are in Yecora Mining Registry District, State of
Sonora, Mexico. All are valid for all metallic minerals, and all are 100 percent owned by MAS.
Excepting the Bacanora concession (see next paragraph) no royalties are payable to other parties.
All concessions have been legally surveyed. MAS acquired the Hilda 33 to 40 concessions by purchase
during 2005 from previous owners, while Hilda Fraccion 1, 2, and 3 were new application made by MAS
during 2006.
On 31 January 2007, MAS purchased the Bacanora concession from Minera Teck Cominco, S.A. de C.V.
(MTC), a Mexican corporation which is wholly-owned by Teck Cominco of Canada. Terms of the
acquisition included transfer of VM shares to MTC and a 2 percent Net Smelter Returns royalty on metal
production from the Bacanora property. There are no minimum royalty payments in lieu of actual
production. The exploration data relating to the Bacanora property was included in the purchase.
Table 4-1
MLV-MAS concessions in Los Verdes Project
2007 Work
Name Title no. Title Date File no. Hectares Expiry Date Commitment
(pesos)
Hilda 33 217359 02 Jul 2002 082/27941 189.1993 02 Jul 2052 38,074.15
Hilda 34 220144 06 Jun 2003 082/28415 121.7320 6 Jun 2053 24,740.03
Hilda 36 220444 25 Jul 2003 082/28548 41.2423 25 Jul 2053 4,118.10
Hilda 37 223879 03 Mar 2005 082/29171 276.2343 3 Mar 2055 27,976.90
Hilda 37 Fraccion 1 223911 08 Mar 2005 082/29317 1.2955 8 Mar 2055 65.36
Hilda 37 Fraccion 2 223912 08 Mar 2005 082/29317 1.4622 8 Mar 2055 65.36
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Table 4-1
MLV-MAS concessions in Los Verdes Project
2007 Work
Name Title no. Title Date File no. Hectares Expiry Date Commitment
(pesos)
Hilda 38 223836 23 Feb 2005 082/29055 20.5762 23 Feb 2055 686.28
Hilda 39 224958 28 Jun 2005 082/28552 1100.7171 28 Jun 2055 103,860.18
Hilda 40 230282 03 Aug 2007 082/31327 197.6725 03 Aug 2057 7,287.69
Hilda Fraccion 1 228545 08 Dec 2006 082/30631 2277.3319 08 Dec 2056 79,973.79
Hilda Fraccion 5 228549 08 Dec 2006 082/30631 3.806 08 Dec 2056 40.85
Bacanora 214665 26 Oct 2001 2/2 4/02260 55.0 26 Oct 2051 5,392.75
TOTALS -- -- -- 5559.1068 -- 341,327.76
Each concession has an annual minimum work commitment, based on its surface area and age. The work
may be performed on one or more concessions, for the benefit of all concessions in a contiguous group.
The commitment due for the year 2007 for the entire group of MAS-MLV concessions is estimated at
approximately $US35,000, an amount exceeded many times over by qualifying work (e.g. drilling) done
on the property (see Table 10-1).
The security and marketability of title for the concessions on Table 4-1 were the subject of a Title
Opinion by Mexican lawyer Eduardo Robles, dated 3 March 2008, based on review of documents in
government files as of mid-February 2008. Mr. Robles’ opinion was that, subject to the qualifications he
stated, the properties were in good standing, free of encumbrances, and marketable from a legal
viewpoint, at that time.
Figure 4-1 depicts the Molibdeno Los Verdes Alamos Concessions. The green outline is the exterior
boundary of the MAS concession block. The Grid on the main map is 1 kilometer.
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Figure 4-1
Molibdeno Los Verdes Alamos Concessions - Los Verdes
The Buena Vista Moly Pit is on Hilda 36, and the Bacanora concession, immediately west of Hilda 36,
underlies part of the mineral Resource described in this report. The town of Santa Ana is on the portion
of Hilda 39 which is south of Hilda 36. The relation of the property boundaries with respect to geology is
shown on Figure 7-2.
The Mexican mineral concession system as explained in Sears, Barry (2005) is reproduced here in slightly
modified wording. There have been no material changes in the system since 2005.
A concession is staked by erecting or utilizing existing surveyed monuments from which the corners of
the concession are defined by written descriptions. Once staked, it is registered with the Mines Division
of the Mexican Government (Secretaria de Economia, Coordinacion General de Mineria, Direcion
General de Minas) and a secure title is granted (Titulo Concesion Minera de Exploracion). Three types
of concession are granted in Mexico. These include:
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1. Exploration Concessions, carrying the right to undertake exploration including extracting a
small amount of minerals (valid for up to six years); an annual tax and an annual work
commitment are required to maintain an exploration license;
2. Exploitation Concessions, which gives the owner the right to mine (valid for up to 50 years and
renewable for another 50); and
3. Beneficiation Plant Concession which allows a party to occupy property to operate a mill and/or
smelter.
Mineral exploration and development by foreign companies is welcomed and encouraged by the
government of Mexico.
4.3 Environmental Issues
According to information from MAS, surficial exploration can be carried out on a titled exploration
concession without additional permits. If drilling is planned and the drill-sites are confirmed, an
application must be submitted to the Secretaria del Medio Ambiente y Recursos Naturales (SEMARNAT)
prior to issuing an environmental drilling permit (Informe Preventivo).
At Los Verdes, the areas drilled in 2006 and those anticipated for 2007 have been cleared previously, and
have access roads. Therefore, no permitting problems are anticipated for the work program proposed in
this report.
To the author’s knowledge, the principal potential environmental concerns at the Los Verdes project
would relate to land use, especially valley lands suitable for agriculture, and the supply and quality of
water. Because the local population density is low, and because MAS have good relations with the ejido,
these issues are not expected to be unusually contentious.
Several thousand tonnes of tailings from the 1960’s mining and milling of the Moly Pit remain west of
the town of Santa Ana. Erosion of these tailing has washed some into the Santa Ana River. The
concessions which covered the mining and milling operations at that time were subsequently abandoned,
and were later re-staked by an unrelated party; therefore, no environmental liability is expected to remain
with the current owner (i.e. MAS).
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5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND
PHYSIOGRAPHY
5.1 Access, Physiography, and Climate
The Los Verdes Property is located in the municipality of Santa Ana de Yecora, State of Sonora, Mexico
(Figure 5-1). It lies about 200 kilometers east-southeast of Hermosillo, and 190 kilometers northeast of
Ciudad Obregón, on the government-published topographic sheet Santa Rosa, H12D76.
UTM coordinates near the center of the property are 681,500 E, 3,143,000 N (NAD 27). The longitude is
109 degrees, 10 minutes W, latitude 28 degrees, 24 minutes N. Elevation on the property ranges from
740 meters to 1200 meters. The Los Verdes property can be reached from Hermosillo or from Chihuahua
City via the paved Mexico Federal Highway 16, which connects those two state capitals (Figure 5-1).
The turnoff to the property is located 242 kilometers east of Hermosillo and 40 kilometers west of
Yecora. From the Highway 16 turnoff, the small town of Santa Ana lies seven kilometers southwest via a
gravel road. The open pit on the Los Verdes property is 1.5 kilometers north of Santa Ana, via a steep
dirt road. Four-wheel drive is recommended, especially in wet weather.
The region around the Property consists of ruggedly corrugated mountains of the Sierra Madre
Occidental. Local relief in the mountains typically approaches 1000 meters near major river valleys, and
500 meters elsewhere. There is very little flat ground near the Property.
The climate is subtropical, with a summer rainy season. Frosts are unknown. Vegetation is scrubby thorn
forest, with some oaks and scattered pines. Annual rainfall is about 1000 millimeters, but
evapotranspiration is normally higher than this. There are no extremes of climate which would impair
year-round mining operations, but exploration is slightly more efficient during the dry season (October to
May).
5.2 Local Resources and Infrastructure
Yecora, 40 kilometers east of the Santa Ana turnoff, is a ranching town with a population of about 5,000.
It has basic services such as telephone, internet, motels, restaurants, a health clinic, hardware stores,
gasoline, etc. A serviceable airstrip lies adjacent to the town.
Santa Ana has a population of perhaps 300 people, with a school but almost no services except basic
groceries. A power line to the town is under construction, with completion expected early in 2008. There
are very few outlying residences, and none within the MAS drilling program and Resource area. The flat
valley lands are cultivated, whereas the slopes which underlie 90 percent of the surface are used only for
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grazing. There is sufficient land available locally to eventually contain mine dumps, mill, tailings, and
office facilities.
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Figure 5-1
Location of Los Verdes Property
MAS does not currently own any surface rights in the area. The surface rights over much or all of the
MAS mineral rights are used by the residents of Santa Ana. Recent investigations by LV – MAS have
revealed that title to the surface rights are not clearly vested in an ejido (an agricultural cooperative
peculiar to Mexico), as was formally believed. The local residents and the Mexican government are
working to resolve the title issues, so that VM – MAS can negotiate with a clear title-holder. The process
of clearing title is expected to be completed during 2008. Mexican law give right of eminent domain to
mineral-rights holders, but it is still customary and even necessary for miners to purchase or lease the
surface rights in an operating area.
The Los Verdes property is in the basin of the Rio Yaqui, which drains to the Gulf of California. Water
flows year-round in the Rio Santa Ana, a tributary of the Rio Yaqui, but most other streams are dry for
much of the year.
According to MAS personnel (Alfonso Daco), water rights must be obtained through a legal process
involving the Comision Nacional de Agua (CNA), a federal government agency. If, as is highly likely,
the source of water is on ejido land, it is necessary to also obtain the ejido's permission in writing. MAS
have initiated discussions with ejido about water rights, and are also negotiating with an environmental
firm about doing a hydrological survey.
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6.0 HISTORY
The Los Verdes property and its surrounds have undergone many years of intermittent exploration and
minor production, as reported in Sears, Barry (2005). Table 6-1, adapted in part from Sears, Barry, refers
to the Los Verdes area in general, since the current concessions date only from the post-2000 period.
Table 6-1
History of Los Verdes Area
Period Owner or Lessee Work Undertaken Location

50 tpd Mo production from
1956 small miners a.k.a. Moly Pit
Buena Vista Pit
Minera Galivaz, Minera Tres Piedras exploration, mainly at Tres eastern area, including Moly
1963-68
(Getty Oil) Piedras Pit, and Tres Piedras, 9 km NE
1650 m of drilling, regional
geology and geochemical
Newmont option from Alonso
1967-69 sampling. Yielded “potential western area
Farnsworth
resources” of 15 million short
tons at 0.13 percent Mo
1968-69 John Alexander, optioned to Homestake 45 m drilling eastern area, incl. Moly Pit
1969 John Alexander sold to Cominco eastern area, incl. Moly Pit
Minera El Campanero (Wahl, Cook,
estimated 35 million short tons
1969-70 Wynn and Samores) acquired the western area
0.15 percent Mo
Newmont property from Farnsworth.
Minera El Campanero purchased by 9 core holes, 28 RC holes on
1971-72 Moly Pit and breccia areas
Cominco Cu-Mo area
57 diamond core holes, C-1 to
C34 and DPC-35 to DPC-57.
Peñoles acquired 60 percent of El
Two adits from Moly Pit; one
Campanero, Cominco 40 percent
for 283 meters W into Mo-Cu
1972-79 partner. Joint company was Cia. Minera Moly Pit and west
deposit, one 85 meters to E.
Coronado, S.A. de C.V.
Metallurgical testing on a bulk
sample; resource estimate and
economic evaluation.
Minera Montoro (Fisher-Watt), optioned pre-feasibility study on copper
1996-97 breccia and nearby ?
from Cominco zone
late 1990’s no activity most concessions lapsed
2003-2005 various individuals staked new concessions entire area except Bacanora
purchased concessions from
2005-2006 Virgin Metals (MAS-MLV) local owners, applied for Hilda entire area except Bacanora
1-2-3 areas.
41 RC holes in 2006 in Moly Pit and breccia, also to
2006 Virgin Metals (MAS-MLV)
breccia, Moly Pit, and to east. east, not Bacanora
drilled 21 core holes, 40
reverse-circulation holes,
2007 Virgin Metal (MASMLV) entire mineralized area
metallurgical tests, acquired
Bacanora concession & data
2008 Virgin Metal (MAS-MLV) continuing geology, drilling, entire mineralized area
6.1 Prior Exploration, Development, and Production
As noted in Table 6-1, the prospect area has been drilled in 1967-69, 1971-72, 1972-79, and again in
2006. The only production was in 1956, when several thousand to tens of thousands tonnes of probably
high-grade molybdenum mineralization was mined by local people. No details are available about this
production, which was from the Moly Pit, known at that time as the Buena Vista Mine.
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There are several other named prospects within the property. None of them had significant production,
and little is known about them.
6.1.1 Cominco exploration
Cominco, in partnership with Peñoles, explored at Los Verdes from 1972 until 1979, under the name Cia.
Minera Coronado, S.A. de C.V. This joint venture undertook geologic mapping and surface sampling,
drilled 57 diamond core holes, drove two adits from the Moly Pit, sponsored metallurgical testing on a
bulk sample, and undertook resource estimation and economic evaluation.
6.1.2 1996-2005 exploration
During this period, only desultory work was performed at Los Verdes, and apparently no actual
exploration was undertaken
6.1.3 Virgin Metals – MAS exploration
Beginning in 2005, Virgin Metals acquired properties in the camp, culminating in early 2007 in
acquisition of the Bacanora concession, previously held by COMINCO. VM – MAS has since carried out
a vigorous and continuous program of field work and economic evaluation. This work is summarized in
Table 6-1 and in Sections 10 to 17 below, and in CAM (2007).
6.2 Historical Mineral Resources
Several resource calculations were made prior to 1980, none of them 43-101-compliant. They are
reported in Sears, Barry (except #4 below), based on reports reviewed by Sears, Barry.
1. 1967 - 1969, Newmont: “potential resources” of 15 million short tons of 0.13 percent Mo.
2. 1969 - 1970, Cominco: “potential” of 35 million short of 0.15 percent Mo.
3. 1979, Peñoles: "ore bodies" -
a) tungsten zone, 1,060,221 tonnes of 0.066 percent Cu, 0.052 percent Mo and 0.412 percent
WO3
b) mixed zone, 2,178,090 tonnes of 0.12 percent Cu, 0.065 percent Mo and 0.177 percent
WO3
c) Cu-Mo zone, 6,387,415 tonnes of 0.94 percent Cu, 0.174 percent Mo and 0.134 percent
WO3.
4. 1979, Peñoles: proven and probable reserves, with 10 percent dilution – 7,100,000 tonnes of
0.86 percent Cu, 0.16 percent Mo, and 0.135 percent WO3
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In 2007, CAM produced a mineral Resource estimate, compliant with NI 43-101 (CAM, 2007).
Resources were tabulated at various cutoff grades using a bulk density of 2.55 tonnes per cubic meter.
Table 6-2, reproduced from Table 17-3 of CAM (2007), presents the Resource as calculated by the
kriging method at a cut off grade of either 0.04 percent molybdenum and/or its approximate economic
equivalent, 0.32 percent copper. The tungsten values calculated are contained tungsten, using the
reported molybdenum or copper cutoff; no tungsten cutoff was applied to blocks. It should be noted that
this estimation excluded mineralization on the Bacanora concession, which at the beginning of 2007 was
not controlled by VM-MAS-MLV.
Table 6-2
Resources at a 0.04 percent Mo Cutoff and/or a 0.32 percent Cu Cutoff
Resource Molybdenum Copper Tungsten Contained Contained
Tonnes
Category % Mo % Cu %W Molybdenum (lb) Copper (lb)
Measured
4,641,000 0.129 0.49 0.088 13,158,000 50,575,000
Resources
Indicated
5,861,000 0.120 0.43 0.083 15,480,000 54,917,000
Resources
Total Measured
10,502,000 0.124 0.46 0.085 28,638,000 105,492,000
& Indicated
Inferred
1,089,500 0.120 0.16 0.024 2,880,000 3,898,000
Resources
Derived values in the above table have been rounded.
Excludes Bacanora concession.
It should be noted that the stoichiometric conversion factor for WO3 to W is 0.793.
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7.0 GEOLOGICAL SETTING
7.1 Regional Geology
Los Verdes lies within what could be considered the southerly extension of the Basin and Range province
of the southwestern USA, near the boundary with the Sierra Madre Occidental province (Figure 9-1).
Legend and Notes:

• Figure is modified from CRM,
1994.
• Ruled pattern indicates
Tertiary volcanic rocks.
• Blue circles indicate
molybdenum-bearing
breccias.
• Yellow squares are
porphyry-copper systems.
Figure 7-1
Geological Setting of Los Verdes Property
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The Sierra Madre Occidental is underlain mainly by bimodal Tertiary volcanic rocks which are divisible
into two series: the Upper and Lower Volcanic Series (Serie Inferior and Serie Superior). The Lower
Series is on average more mafic and is often tilted or weakly folded, with dips usually less than 20
degrees, although steeper structures do occur, especially around sub-volcanic intrusives. The Upper
Series is usually horizontal or weakly tilted. Most mineral deposits occur in the Lower Series; however,
the boundary between Upper and Lower Series is not always clear.
In contrast, the Basin and Range province (or "ranges and parallel valleys" of CRM, 1994) in southern
Sonora contains a wide variety of igneous, sedimentary, and metamorphic rocks of Paleozoic to Holocene
age, with a strong north-northwesterly tectonic fabric. The structures are largely tensional, dominated by
normal faults and sub-circular intrusive and volcanic structures.
The units in southeastern Sonora are shown and described by Sears, Barry (2005, Figure 5). Those of
principal interest to Los Verdes are the Laramide (Late Cretaceous to Early Tertiary) plutonic,
subvolcanic, and volcanic rocks, especially the felsic units.
7.2 Local Geology
Geology of the Los Verdes area is depicted on Figure 7-2, adapted from Peñoles’ 1979 map. The deposit
is within a sub-circular granitic pluton exposed over some 150 square kilometers in the vicinity of Santa
Ana. The intrusive has several facies, mainly weakly porphyritic monzonite, with some exposures
classed as granodiorite and quartz diorite. Lesser areas of K-spar porphyry also occur. Based on regional
considerations, the intrusive is probably Laramide (earliest Tertiary) in age.
According to Peñoles’ (1979) mapping, the pluton is ringed by Cretaceous (pre-intrusive) andesitic and
dacitic volcanics, and is overlain by Tertiary (post-intrusive) volcanic tuffs. It is not inconceivable that
the two series of volcanics are equivalent to the Upper and Lower Volcanic Series of the Sierra Madre
Occidental, both of which are of Tertiary age. The map pattern suggests than the pluton domed the older
volcanics, and was later covered by the sub-horizontal Tertiary tuffs. It is not certain whether
mineralization is older than, or coeval with, the Tertiary tuffs. The fact that several mafic to intermediate
dikes cut the mineralization suggests that the younger volcanics are post-mineral.
A linear series of exposures of breccias traverses the pluton at a trend of N 45 E. The Moly Pit occurs
within one of these breccias, just south of the center of the exposed pluton. In addition, the Peñoles map
shows other breccias scattered around the margins of the intrusive. It is not clear as to which of these
quartz-tourmaline breccias are, and which could possibly be of Tertiary volcanic origin, rather than of
hydrothermal origin.
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Peñoles has mapped a number of faults of diverse orientations cutting the pluton, with a prominent
northerly set traversing the center of the pluton, and passing near the Moly Pit.
Peñoles’ map also shows a number of areas of “hydrothermal alteration” and “deuteric alteration”
scattered around the older volcanics, the Laramide pluton and the breccias. The alteration does not appear
to affect the younger volcanics. Alteration assemblage minerals are not described in the report available
to CAM, and on Figure 9-2 the alteration is not differentiated. The altered zones are to some degree
parallel to the longer faults.
Figure 7-2
Geology of Los Verdes and Surroundings
7.3 Property Geology
The geology, along with the lithologic coding used to log drill samples, are described below. Throughout
the history of the project, various modifications of the names used here have been employed in logging.
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These definitions reported here are those used by VM in 2008 to rationalize the historic database. The
lithologic codes are based on rock type plus mineralization type.
The overall concession limit is underlain mainly by intrusive, with lesser areas of older volcanics. About
20 percent of the area is underlain by alteration zones, including a large north-south ellipse of alteration
extending northward from the village of Santa Ana. Several large patches of breccia occupy the central
part of the property – whether all of these are of hydrothermal versus volcanic origin is not yet confirmed.
MAS have not yet undertaken mapping and prospecting of the other breccia areas on the property, nor of
the alteration zones. There is no detailed geologic map available, only the map in Peñoles (1979),
modified in Figure 7-2.
7.3.1 Granitic intrusives
The most widespread unit is typically the Granodiorite. It is variously logged as Unit 2 (mineralized and
oxidized), Unit 4 (mineralized), Unit 5 (unmineralized or “hypogene”], and Unit 7 (mega-breccia). The
granodiorite hosts the bulk of the Mo-Cu mineralization but is not mineralized everywhere. It is generally
medium- to coarse-grained, competent, and crosscut by veinlets of calcite and anhydrite. Hornblende
phenocrysts are common, most variable altered to chlorite. Sulphide mineralogy is generally limited to
disseminated pyrite Local chalcopyrite has also been noted, even where not stockworked and mineralized.
Alteration varies from quartz-sericite (phyllic), to K-spar and local argillic. Where present, the argillic
alteration appears to be structurally controlled, occurring where the host is intensely sheared, broken or
fractured.
Monzonite (Unit 6) is encountered to a limited extent, as small dikes near drillhole LVDD1407. The unit
is pale grey green and can be porphyritic in texture due to the presence of feldspar phenocrysts. It is
devoid of mineralization. Diorite was occasionally mentioned in COMINCO logs, but its true
composition cannot be verified.
Logging of core and outcrops has convinced VM-MAS geologists that the mineralized parts of the
granodiorite range from a stockwork to a crackle breccia or mega-breccia, with veinlets or veins of
quartz-tourmaline-sulfide mineralization surrounding granodiorite blocks one to ten meters across.
7.3.2 Breccias
There are two abundant types of obvious, smaller-scale breccias in and near the mineralized zone. The
Quartz-Tourmaline Breccia (Unit 3) hosts much of the mineralization in the Peñoles-COMINCO adit
area. It is made up largely of granodiorite clasts several centimeters to one meter in diameter, with a
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matrix filling of black schorl (iron-rich tourmaline) forming silky, radiating aggregates of needle-like
crystals up to several centimeters long. Dark chlorite is admixed with the tourmaline, and may be
difficult to distinguish in the field. The tourmaline is overlain by coarse, radiating rosettes of
molybdenite, with some clots of chalcopyrite/chalcocite. Black chalcocite can be a substantial component
of the Quartz-Tourmaline Breccia, and can be difficult to identify as such. Granodiorite clasts locally
shows sericitic or kaolinitic alteration.
Although spectacular due to the abundant molybdenite, Quartz-Tourmaline Breccia appears to be limited
to perhaps 10% of the overall drilled zone.
The Quartz-Pyrite Breccia (Unit 22) underlies much of the Moly Pit and the adit portal. It has a matrix of
coarse, euhedral milky quartz crystals and coarse pyrite, with little of the tourmaline-molybdenite-
chalcopyrite suite. Breccia clasts are granodiorite, usually showing phyllic alteration (sericite).
Outside of the main occurrence within the pit, Quartz-Pyrite Breccia has been identified within RC drill
holes LVRC2706, LVRC2906 and LVRC3206. The key mineralogy in all cases is the presence of
massive to euhedral pyrite and quartz, generally accompanied by minor molybdenite.
In addition to the two types of breccia described above, fault breccias (Unit 20) were occasionally
encountered in drillholes. These tend to be thin, of variable clast makeup, and often oxidized.
7.3.3 Dikes
Drilling occasionally encountered dikes of andesite (Unit 20), felsite or aplite (Unit 21). Dikes are
typically not mineralized, although some mineralization has been noted.
The andesite dikes are grey-green in color and are fine grained to porphyritic in texture. In the case of the
latter, the porphyritic texture is due to the presence of phenocrysts of plagioclase and hornblende. shown
below. Widths vary from 3 to 5 meters, locally thicker. Andesite dikes may be cut by numerous calcite-
anhydrite veinlets. Rare outcrops of andesite occur within the granodiorite.
Felsic dikes are less common, generally thinner, and highly variable in texture and composition. One
exposure of a quartz-feldspar porphyry dike, one meter wide, occurs in a road cut on the south side of the
bufa ridge, about 300 m southwest of the Moly Pit.
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7.3.4 Structure
An important north-trending fault on the property is the Buena Vista Fault, which passes along the west
side of the Moly Pit, near the eastern limit of the breccia zone underlying the ridge to the east. The fault
dips 40-45 degrees to the west, and has a rubbly fault breccia containing mineralized fragments. The fault
appears to be post- or late-mineral, but the sense of movement is not clear. It could possibly be a feeder
for the mineralization, since Cu-Mo-W mineralization occurs on both sides, although mainly to the west.
7.3.5 Alteration
Three different styles of alteration typical of porphyry-related systems have been identified at Los Verdes.
These include phyllic, argillic and potassic alteration. In addition, propylitic alteration is widespread on
the property, but has not generally mapped. The alteration assemblages occur both individually or more
commonly, overprinting each other as seen in numerous drill holes and in outcrop.
Phyllic alteration is defined by the presence of sericite, quartz (silica), and pyrite. This is the most
extensive alteration type at Los Verdes, extending along the south flank of the main ridge and peripheral
to the Moly Pit. The intensity is generally moderate to strong. The sericite occurs replacing primary
feldspars and along small shears, fractures, and veinlets. Where intense in fresh rock, a distinct apple-
green color is noted. Elsewhere, it can have a bluish hue and in the upper oxide zone, the intense
sericitization leaves the rock bleached and greasy to the touch.
Like the K-spar alteration, the phyllic alteration is associated with some of the better mineralization at
Los Verdes.
Argillic alteration is defined by the presence of kaolinite. At surface the alteration is observed primarily
west of the Moly Pit. Surface mapping indicates the alteration to be moderate in intensity with local
patches of included K-spar and propylitic alteration. Oxidation is common and both hematite and
limonite are noted, the former being the dominant mineralogy.
Argillic alteration can occur as pervasive destruction of feldspars, or as intense local zones related to
shearing, faulting and fracturing. The latter occurrences are common and generally observed as a
secondary feature overprinting other alteration patterns. In the reverse circulation drilling program where
kaolinite was intersected, the zones were interpreted as faults or shears. In diamond drill core, the
delineation of fault and shear zones is complicated by the presence of abundant fracturing and rubblized
zones within the core.
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Potassic alteration is usually identified by distinctive secondary pink potassium feldspar (K-spar).
Secondary biotite and tourmaline also occur locally. Potassic alteration is generally associated with
strong disseminated molybdenite mineralization, especially in the southern portion and toward the base of
the mineralized lens.
Secondary K-spar often occurs as abundant secondary crystals and matrix growths. In the lower portions
of the mineralized zone, K-spar is found associated with late stage quartz veins and as veinlets in
unmineralized granodiorite. Cominco drill logs often mention “pegmatite” within the Granodiorite; these
occurrences fact be zones of K-spar alteration instead of true pegmatite.
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8.0 DEPOSIT TYPES
Los Verdes contains molybdenum-copper-(tungsten) mineralization in stockworks and breccias related to

felsic intrusive rocks, principally granodiorite. A number of features of the deposit clearly place it in the
category of a porphyry copper-molybdenum system with a molybdenum breccia-pipe component. The
indicative features are post-intrusive stockworks and breccias with interstices partly filled by fine-grained
tourmaline, molybdenite, copper and varying amounts of tungsten and base-metals minerals, and late
quartz-pyrite. Los Verdes clearly meets the definition of this type of deposit.
The copper-molybdenum-bearing breccias are included within USGS deposit-type classification (Cox and
Singer, 1993) type #21a, Porphyry Cu-Mo.
Related Cu-Mo-(W) deposits occur at many localities in the American Cordillera, especially in Arizona,
Sonora, and Chile. Examples in Sonora include Cananea with the La Colorado pipe (Cu-Mo); the Pilares
Cu-Mo system at Nacozari, the San Judas, Cobre Rico, Washington, and El Transval breccias (Cu-Mo-
W) at Cumobabi, and the El Creston breccia (Mo-Cu-W) at Opodepe (Figure 7-1. Los Verdes lies in the
south part of a belt of molybdenum-bearing breccias and porphyry Cu or Cu-Mo deposits which extend
southeasterly across eastern Sonora, just to the west of the volcanic plateau of the Sierra Madre
Occidental
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9.0 MINERALIZATION
The mineralization west of the Bacanora concession was described in a previous Technical Report (CAM,
2007). The mineralization on the Bacanora concession is mainly of stockwork type, rather than being
associated with tourmaline breccias as in the adit near the Moly Pit.
9.1 Style of mineralization
The mineralization at Los Verdes is of magmatic-hydrothermal origin, consisting originally of sulfide

minerals, principally chalcopyrite, pyrite, and molybdenite, and apparently related to the granodiorite.
Weathering near the surface has converted some of the mineralization to an oxide facies (principally
ferromolybdite plus iron oxides). Some of the metals liberated by oxidation of sulfides have percolated
downward, and have re-precipitated as secondary sulfides, mainly chalcocite, in the vicinity of hypogene
sulfide minerals.
Each of the three mineral zones is discussed in turn below. Most of the non-oxide mineralization is
buried, and the descriptions below are largely from drill core. The numbered Units mentioned were used
by VM in core logging.
The mineralized unit is typically the granodiorite, with perhaps 10% in quartz-tourmaline breccia. Other
units make up and insignificant portion of the mineralized tonnage.
Plan and cross-section views of the mineralized zone are shown in Figures 9-1, 9-2, and 9-3.
The mineralized zone on the Los Verdes property is about 300 meters northeast-southwest, and 200
meters northwest-southeast. Its eastern edge is at the Moly Pit, where it is cut off by the Buena Vista
Fault. The mineralized zone is centered beneath the ridge extending southwest from the Moly Pit.
As it expected in deposits related to a porphyry system, Los Verdes shows several different types of
lateral variation, relating to both hypogene processes (e.g. thermal gradient) and supergene processes
(oxidation).
The vertical zonation, as confirmed by MAS drilling, can be described as follows (see Figures 9-2 and 9-
3):
1. The uppermost zone is a copper-leached cap 0 to 20 meters thick and sub-parallel to the surface,
with very low Cu values (<500 ppm), and low Mo and W values.
2. An Oxide Zone with secondary minerals (copper carbonates, chalcocite, ferrimolybdite, and
probably ferritungstite), 10 to 50 meters thick, and also conforming loosely to the current
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topography. According to a limited suite of assays for soluble molybdenum commissioned by
VM, essentially all the Mo in the oxide zone reports as soluble Mo (i.e. ferrimolybdite),
whereas almost none of the Mo below the oxide zone reports as soluble.
3. Supergene mineralization with secondary enrichment of chalcocite as well as hypogene
molybdenite, wolframite, and pyrite, referred to as the Sulfide and Mixed Zone (SAM).
Beneath the ridgecrest, this mineralization may be 100 to 200 meters thick. Supergene-enriched
mineralization makes up the bulk of the Resource at Los Verdes.
4. The lowest zone is hypogene protore, which is normally granodiorite, carrying pyrite,
chalcopyrite, molybdenite, and sparse scheelite. Within the breccia, molybdenite forms coarse-
grained euhedral rosette penetrating into voids, whereas in the granodiorite molybdenite is
mostly fine-grained, and is related to veinlets.
According to Peñoles’ 1979 report, the mineralization shows apparent lateral zonation, with three
overlapping zones:
1. tungsten zone on the west end (mainly on the Bacanora concession)
2. copper-tungsten- molybdenum zone in the middle
3. molybdenum zone on the east.
VM-MAS exploration drilling was mainly restricted to the area east of the high-tungsten zone, and these
zones were not further quantified.
9.1.1 Hypogene mineralization (Sulfide Zone)
The Los Verdes mineralization is centered on a lens-shaped body of veining and stockworking within the
granodiorite. The lower levels of the drilled portion of the granodiorite may be barren of mineralization
but are typically cut by veins and veinlets of quartz with pyrite. This level is referred to a “hypogene
granodiorite” (Unit 5).
At higher levels, the veining and brecciation become abruptly greater, with introduction of copper sulfides
and molybdenite. Brecciation and filling of voids by tourmaline and chlorite becomes more abundant
upwardly. The contact between barren “hypogene” granodiorite and mineralized granodiorite above,
defines a bowl-shaped surface as depicted in Figure 9-2 and 9-3.
9.1.2 Secondarily-enriched mineralization (Mixed Zone)
A distinct supergene zone is present at Los Verdes, overlying the hypogene mineralization. It is readily
defined by Cu values much greater than the oxide zone, often over 1% Cu. Mo and W may be elevated
compared to the oxide zone, but less notably. Copper-oxide minerals (notably malachite and azurite)
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often occur at the top of the zone. The contact with the overlying oxide zone is rather sharp, usually
definable within a meter by the sudden transition into molybdenite, from ferrimolybdite above.
Within the supergene blanket there is a distinct Cu zone, extending along and to the south of the main
Moly Pit adit. This is expressed primarily in drill holes LVRC0106, LVRC0206, LVRC0306,
LVRC0606, LVRC1906 and LVRC4106.
9.1.3 Oxide mineralization (Oxide Zone)
The surface of the mineralized zone at Los Verdes is generally underlain by a near-surface oxide zone
(Unit 2a or 2-1), typically carrying about 0.1% Mo, mainly as ferrimolybdite, and up to 0.2% Cu, largely
as traces of malachite and azurite. While the same copper minerals may occur in both the oxide and the
secondarily-enriched zone, the transition of molybdenum minerals is quite abrupt: ferrimolybdite above,
and molybdenite below. Jarosite, and ferritungstite also occur, in addition to limonite. These minerals
occur as disseminations and in weakly-defined veinlets in granodiorite.
The oxide zone tends to be somewhat rubbly at surface, with staining by iron minerals.
9.2 Mineralogy
Molybdenum-copper-tungsten mineralization at Los Verdes has been described in the various reports
listed in Section 22, References. Most of these reports discuss only the megascopic mineralogy as
reported from hand specimen or drill samples. The principal petrographic and X-ray studies of the
mineralogy, as far as CAM are aware, were by RDI (2008), who discussed mainly sulfide minerals.
The principal minerals of economic interest reported to date are shown on Table 9-1. Molybdenite,
chalcopyrite, and chalcocite are the dominant minerals of interest, with oxidized products of these also
locally abundant.
The tungsten minerals are of secondary economic importance, and are not as well known The RDI report
mentions scheelite-powellite as the tungsten mineral in the supplied sample, whereas the Cominco reports
show wolframite (i.e. ferberite-hubnerite). Ferritungstite is reported in the oxide zone.
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Table 9-1
Selected minerals of interest, Los Verdes deposit
mineral type formula metal content origin documentation
Anhydrite sulfate CaSO4 -- hypogene drilling
Azurite carbonate Cu2(CO3) 2 (OH)2 45 percent Cu supergene sparse at Moly Pit
Bornite sulfide Cu5FeS4 63.3 percent Cu hypogene drilling
Calcite carbonate CaCO3 -- alteration veins in mafic dikes
chalcocite sulfide Cu2S 80 percent Cu supergene widely reported
magmatic-
chalcopyrite sulfide CuFeS2 34.6 percent Cu seen at Moly Pit
hydrothermal
approx (Fe,Mg) 5 (Al,Si) 4O10
chlorite group silicate, mica -- alteration reported in drilling
(OH)8
(Cu,Al) 2H2Si2O5 33.9 percent Cu,
Chrysocolla hydrated silicate supergene Moly Pit, drilling
(OH)4·n(H2O) varies
supergene, can
Covellite sulfide CuS 66.6 percent Cu drilling
be hypogene
feldspar, potassium silicate KAlSi3O8 -- magmatic visual, RDI report
2 reported by Peñoles and
ferrimolybdite oxide Fe (MoO4)3·8(H2O) 40 percent Mo weathering
Sears, Barry
3
(K,Ca,Na)(W,Fe )2
65.8 percent W reported by Peñoles and
Ferritungstite oxide (O,OH)6· (H2O) weathering
3 83 percent WO3 Sears, Barry
or (W,Fe ) (O,OH)3
Gypsum sulfate CaSO4.6H2O -- weathering seen at Moly Pit
Hematite oxide Fe2O3 -- weathering RDI (2008), see limonite
3 weathering, esp.
Jarosite sulfate KFe (SO4)2 (OH)6
3 -- seen at Moly Pit
of pyrite
hydrothermal,
Kaolinite silicate, clay Al2Si2O5(OH)4 -- Moly Pit, drilling
weathering
fine-grained mixtures of
oxide-hydroxide goethite FeO.OH,
limonite -- weathering seen at Moly Pit
mixture lepidocrocite FeO.OH,
hematite Fe2O3; others
Malachite carbonate Cu2(CO3)(OH)2 57.5 percent Cu supergene seen at Moly Pit
magmatic-
Molybdenite sulfide MoS2 59.9 percent Mo Moly Pit, drilling
hydrothermal
47 percent Fe, 53
pyrite sulfide FeS2 hypogene Moly Pit, drilling
percent S
scheelite 80.5% sch: hypogene
tungstate-
scheelite-powellite series Ca(WO4) and Ca(MoO4) WO3 pow: hypogene or identified by RDI (2008)
molybdate
powellite 48.0% Mo supergene
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Table 9-1
Selected minerals of interest, Los Verdes deposit
mineral type formula metal content origin documentation
approx K(Al,Mg,Fe) 2
sericite, illite silicate, mica -- alteration Moly Pit, drilling
(Si,Al)4O10(OH)2
2 magmatic-
tourmaline (var. schorl) silicate NaFe 3Al6(BO3)3Si6O18(OH)4 -- Moly Pit, drilling
hydrothermal
60.5 percent W
wolframite (see series FeWO4 ferberite MnWO4 (ferb.) magmatic- reported by Sears, Barry,
tungstate
ferberite-hubnerite) hubnerite 60.7 percent W hydrothermal not by RDI
(hubn.)
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9.3 Morphology of Mineralization
The mineralized zone on the Los Verdes property is about 300 meters northeast-southwest, and 200
meters northwest-southeast. Its eastern edge is at the Moly Pit, where it is cut off by the Buena Vista
Fault. The mineralized zone underlies the ridge (“bufa”, mound) west of the Moly Pit (Figure 9-1).
Mineralization consists of stockworks, disseminated sulfide patches, vug fillings, grains and veinlets
within the altered granodiorite and the quartz-tourmaline breccia. The deposit forms a sub-circular,
subhorizontal, top-shaped body, The mineral Resource defined in this report is bounded on the west by
the east edge of the Bacanora concession. The Buena Vista Fault forms a partial boundary of
mineralization. To date, no mineralization of economic importance has been located east of the Moly Pit.
Figure 9-1
Surface projection of SAM (Sulfide and Mixed) boundary
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Figures 9-2 and 9-3 show the mineralized zone in cross-section. The sections are oriented approximately
N 30 W, at right angles to the long axis of the mineralized lens.
Figure 9-2
Cross Section through the Mineralized Lens, west of the center
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Figure 9-3
Cross section through the mineralized lens, east of the center.
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10.0 EXPLORATION
10.1 General
As indicated above in Section 8, a number of groups have explored Los Verdes in the past. Records of
the earliest work is fragmentary, and is best summarized by Sears, Barry (2005). MAS have been guided
mainly by the Peñoles report from 1979. This report, however, is very general and lack details of the
drilling results. Although VM in 2007 acquired drill and assay data from Peñoles-COMINCO work on
the Bacanora concession, the written reports of that work were not obtained.
Most of MAS’s field activities were carried out by contractors. The drilling was performed by Layne
Christensen de Mexico, based in Hermosillo. Stabilization of the westerly-trending adit was undertaken
by Minera Stronghold de Mexico, S.A. de C.V. of Hermosillo. The legal survey of concessions was
performed by a licensed surveyor from Hermosillo. MAS has a staff of three contract geologists,
overseen by Mr. Gary Lohman, Qualified Person for the project. Sample preparation and assaying was
performed by ALS Laboratorios de Mexico in Hermosillo. MAS’s Hermosillo office is also staffed by
several other full-time employees.
MAS’s drilling during 2006 and 2007 investigated the known mineralization, mainly through drilling.
MAS have undertaken only limited geologic mapping, geophysics, or geochemistry. The presence of a
porphyry-related Mo-Cu-(W) system of interesting grade on the Los Verdes property has been confirmed.
Drilling, sampling, and assaying are described and discussed in the following sections.
10.2 Exploration Work
Work expenditures by VM-MAS during 2007 are shown in Table 10-1, which reflects when the work was
done, not the payment date.
Table 10-1
2007 Los Verdes Project Expenditures
Category Activities Amount, $US
Property holding costs and Bacanora acquisition 360,000
Site prep & roads, core & RC drilling, assaying,
Drilling & Geology 1,261,000
density, mapping
tunneling not resumed in 2007 due to unstable
Tunneling 0
ground
Metallurgy Sampling (bulk & other) 88,000
Design & Feasibility Engineering and design 1,227,000
Environmental Baseline studies 3,000
Infrastructure Camp Construction & living costs, water, road work 266,000
Overhead & Travel Hermosillo office, travel (LV project only) 390,000
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Table 10-1
2007 Los Verdes Project Expenditures
Category Activities Amount, $US
TOTAL 3,595,000
Excludes amortization.
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11.0 DRILLING
No surface samples were used in Resource estimation. The Cominco adit was treated as two low-angle
drillholes, due to a deliberate bend in the adit.
11.1 Summary of drilling
The database available to VM and CAM on the property consists of data from to the Peñoles-Cominco
program during 1971-1979, and later VM work. Data from any earlier drilling and sampling are not in
VM’s possession and are not represented.
Table 11-1 and Appendix A show the drilling since 1971, all of which was available for use in the current
Resource estimation, except those few holes (as indicated) which were drilled far from the mineralized
area for exploration, condemnation, or geotechnical purposes.
Figure 11-1 shows the locations of all the drillholes. used in the Resource estimation. The Moly Pit adit,
which was treated as two subhorizontal drillholes in Resource calculations, is collared 10 m southwest of
hole LVRC1506, and trends southwesterly towards holes LVRC0106 and LVRC0206 with the first leg
terminating at C-20. From C-20, the adit trends northwesterly beneath holes DPC-42 and DPC-50.
Table 11-1
Summary of drilling.
DATES COMPANY DRILLING AND ADIT AREA
Minera El Campanero purchased by 9 core holes, 28 RC holes on
1971-72 Moly Pit and breccia areas
Cominco Cu-Mo area
57 diamond core holes, C-1 to
C34 and DPC-35 to DPC-57.
Peñoles acquired 51 percent of El Two adits from Moly Pit; one for
Campanero, Cominco 49 percent partner 283 meters W into Mo-Cu
1972-79 Moly Pit and west
in Coronado Resources. deposit, one 85 meters to E.
Metallurgical testing on a bulk
sample; resource estimate and
economic evaluation.
Moly Pit and elsewhere
2006 Virgin Metals 41 RC
east of Bacanora
confirmation on Bacanora
LVDD - 21 diamond core
2007 Virgin Metals mainly, some others incl
LVRC - 40 reverse circ.
exploration to east
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Figure 11-1
Drillhole locations at Los Verdes
11.2 Cominco-Peñoles Drilling Program, 1971-1979
This core and reverse-circulation drilling is summarized in Appendix A. The samples themselves have
been lost, but geological and assay data was available to VM and CAM for Resource estimation. QA/QC
for this drilling is discussed in Sections 14 and 17. The hole locations are shown on Figure 11-1, a
summary of collar data is in Table A-1 of Appendix A, and mineralized intercepts are summarized on
Table A-2 in Appendix A.
11.3 MAS Drilling Programs
The drilling campaign by MAS in 2006 was designed to confirm results of the Peñoles/Cominco drilling
of the 1970’s. The locations of the 2006 holes are shown on Figure 11-1. CAM’s previous Technical
Report (CAM, 2007, Table 11-1) details the locations, orientations, and summary results of the 2006
drilling.
The 2007 drilling program was intended to better-define the shape and extent of mineralization. Results
of the 2007 drilling are displayed in Appendix A.
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QA/QC for VM’s 2007 drilling program was specifically designed to meet NI-43-101 guidelines, and was
overseen by Doug Hartzell, a consulting geologist and Qualified Person of Reno, Nevada, on behalf of
Mine & Quarry Engineering Services, Inc. of San Mateo, California. QA/QC procedures are described in
Section 13.2.3 of this report.
11.3.1 2007 Reverse Circulation Drill Program
Drilling was performed by Layne Christensen de Mexico, based in Hermosillo. The drill was a DSI
Model MPD-1000, manufactured in 1989, and track-mounted. The drill pipe was 3.5-inch outer diameter,
while the center sample-return has a 2.0-inch inner diameter. All drilling was performed dry, except in a
very few cases where the water table was encountered near the bottom of a hole.
During the RC drilling program, samples were collected in 5 foot interval. The geologist on site selected
material for review. In the process of logging, the geologist washed the chips in a coarse screen in order
to obtain a clean surface for examination. The fine material was also screened over water to detect any
fine sulphide dust in the sample. This process worked well as many sections defined in the drill logs as
“fine moly” did correspond to elevated assays for Mo. Pyrite was also commonly seen in the surface
scum. While logging the material, notes were taken of rock type, alteration, mineralogy and structural
features, the latter defined by the presence of mud, ground/sheared chips and locally intense argillic
alteration. Additional comments were made and described any feature that the geologist deemed
pertinent. Upon completion of reviewing the sample section, a representative sample was retained in
standard chip tray for viewing at a later date. The complete set of chip trays is stored in a locked facility
in Santa Ana.
As part of the logging procedure, the daily worksheets were scanned and data was sent every night or as
time and internet availability permitted. Upon receipt of the data, geologist Gary Lohman (a Qualified
Person) compiled the material and highlighted any items that required further discussion. With all data
verified and validated, GL compiled the final logs and assays.
Once the twinned RC holes were completed, the RC chips were reviewed and compared to the geology
present in core from the twinned hole. Notes were taken and a consensus regarding rock types was
agreed upon by the geologic staff on the project. From these discussions and work, the basic coding
scheme was developed. Following the initial review, a complete review of all RC drill holes was
conducted and the material coded in a similar fashion as the diamond core. This data, including the
working field logs, is stored in the office in Hermosillo.
11.3.2 2007 Diamond Core Drilling Program
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Diamond drilling was also performed by Layne Christensen de Mexico utilizing a JKS Boyles B20
underground rig. All drill core was HQ in size, providing core that was 2.5 inches in diameter. Core
recovery was generally greater than 95% with local exceptions.
The diamond core was reviewed by geologists Gary Lohman, Doug Hartzell and Ivan Yanez (of MAS),
and agreement was made on the rock types and the process by which the core was to be logged. That
process included the measuring of the RQD data first followed by a review of the core outlining the
lithology, alteration, mineralization and structure. All core was photographed for reference and images
are available for review. Drill holes LVDD0107, LVDDC23 and LVDD6307 are stored in a locked
building in Santa Ana and they have been retained for reference since whole core sampling was
conducted.
Prior to commencing core drilling, the RQD data sheet was reviewed and validated by the geotechnical
engineers representing MQES.
Gary Lohman and Doug Hartzell conducted a review of the entire DDH core suite and in the process, a
summary log for each drill hole was created. In compiling the final data for the geologic model, this data,
the drill logs, drill core photos and all other material available were utilized while coding the lithology,
alteration, mineralogy and structure. As directed by Doug Hartzell, the VM geological data takes
precedence over historical materials. This does not mean that the previous work is dismissed in fact, the
Cominco geological data is used to back-check the VM data. Furthermore, the Cominco drill holes used
in creating the resource model were back-coded for geology in a similar manner as the VM holes, to
retain consistency. In creating the final geological model, both datasets will be utilized in a consistent
manner.
Since whole-core assay was used, a summary document titled “Los Verdes Geology / Coding” was
created. This document includes a summary of the rock units, a summary log and details for each
diamond core hole. The document also includes a summary of the changes made through the process.
Photos highlighting many of the important features in the drill holes are also included
Documentation used throughout the compilation and verification stages includes the following: original
VM drill logs (RC and DDH), RQD sheets, notes from observations, original Cominco data, petrologic
data, assay data, and drill core photos. Once compiled the data was verified by GL and the staff member
who recorded the original dataset. The final data set was then validated by comparing to original
documentation. Data that appeared doubtful was discarded. All original data including logs, sample
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sheets, lab submittal sheets through assay certificates and finalized data sheets are available in the HMO
office in either paper or electronic form.
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12.0 SAMPLING METHOD AND APPROACH
12.1 Cominco-Peñoles Sampling
Little is known about the practices used, as no written geological or procedural reports are available.
However, CAM did validate the assays, as discussed in Section 14.1.
12.2 Virgin Metals Sampling
The RC samples, each representing 1.52 linear meters (5 feet), were riffle-split at the drill.
Approximately 1/8 of the recovered material (5 to 10 kg.) placed in a plastic bag and immediately
fastened with a security tag. Little moisture has been encountered in drill holes to date, resulting in the
free flowing of all size fractions. Where moisture was present, a sampling cyclone was utilized with drill
cuttings collected in buckets, then placed in a large porous bag and immediately fastened with a security
tag. Reject material for all samples have also been secured and stored on-site for future use. Samples
weighed at the ALS laboratory in Hermosillo typically were in the range 3 to 9 kilograms, as-received.
Sample preparation and analysis are discussed in Section 15.
Diamond core was sent whole for assay, as described above.
12.3 Bulk Density (Specific Gravity) of Mineralized material
Mineralization of economically-interesting grades at Los Verdes is exposed only at the Moly Pit and the
adit. The mineralization exposed there is principally of breccia type, which is characteristic of only a
small part of the deposit. Therefore, in 2007, MAS developed a protocol for determining bulk densities
on new core samples, and made 1302 bulk-density determinations on core.
12.3.1 Bulk Density Measurements
MAS carried out bulk-density measurements on the 17 core holes drilled during 2007. The procedures
followed a written protocol developed in 2007 by Gary Lohman of VM, as outlined below.
a) Responsibility. Measurements were carried out by the drill geologist with the aid of a sampler, at
the drill site. Drill geologists were previously instructed by Gary Lohman, Senior Geologist, who
participated in the initial measurements with the field staff.
b) Sample selection. Measurements were made on one core segment from each 1.5-meter or 3.0-
meter sample interval from the top of the hole, even where not mineralized, continually to the
visual bottom of significant mineralization. The samples for measurement were selected from
core as the holes were being drilled. Sound pieces of core at least 15 cm long were selected
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wherever possible; if not, several larger pieces of shattered core were selected for measurement
together.
c) Measurement. A suitable stick of coherent core (15cm +/-) was selected from the drill run for
analysis. The Hole ID, From, To and Sample # information was recorded on a form. The sample
was weighed in air utilizing an electronic scale. The sample was wrapped tightly in plastic film,
and placed in a basket which was suspended by a wire from the base of the scale. The basket was
lowered into a bucket of water and the weight in water was recorded. The sample was then
unwrapped and placed back into the core tray. From this point, it was treated as were all core
samples selected for assay. The sample number and security-tag number were recorded on the
density logging form.
d) Data management. Following measurement, the original sample sheets were scanned. The data
were then entered into an Excel spreadsheet. The data was then converted to a text file, and the
data entry was verified by utilizing original documents and TextAloudTM software. (TextAloudTM
software reads data aloud to a reviewer who checks the entries against original documents). Any
discrepancies were investigated and resolved.
12.3.2 Analysis of Bulk Density Data
A total of 1302 density measurements were available. A cumulative frequency plot of all these data is
shown in Figure 12-1.
Figure 12-1
SG Data Cumulative Frequency
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This cumulative frequency plot shows a few low-density values which are consistent with the voids
observed in the deposit (e.g. breccias), and a high-grade tail which is consistent with some of the
massive-sulfide intervals observed. CAM made a number of box and cumulative-frequency plots by rock
type, alteration elevation, and depth as well as mineral zone. The mineral-zones were used because rock
type and alteration were not modeled, and the depth and elevation models contained a number of outliers.
Basic statistics by mineral zone are given in Table 12-1.
Table 12-1
Bulk Density Statistics by Mineral Zone
SAM
Outside
Mineral zone (sulfides Oxide ALL
Shell
and mixed)
Mean 2.406 2.239 2.426 2.381
Count 455 262 584 1301
Standard Deviation 0.2078 0.232 0.277 0.256
~95 Confidence Limits as % 2.0% 2.3% 2.7% 0.6%
12.3.3 Discussion of Bulk Density
These results are lower than the numbers used in the previous Resource estimation (CAM, 2007). The
current results are based on much better information from a dedicated bulk-density measurement
program.
CAM believes it is still possible to make some improvements in the specific gravity model by including
depth rock type and alteration. However, the overall statistical uncertainty is less than plus or minus 3
percent for each individual mineral zone and less than 1 percent in toto. This is sufficient for use in a
Feasibility Study.
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13.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY
13.1 Cominco exploration
VM does not have written descriptions of the Cominco procedures.
13.2 Virgin Metals exploration
13.2.1 Sample Preparation
Drill samples were stored at the MAS sample house in the village of Santa Ana. MAS prepared on-site
one blank sample for every 20 drill samples. The blanks, prepared from barren gravels from a site many
kilometers away, were inserted into the sample stream and submitted as blind blanks. In addition, a field
duplicate sample was prepared for every 20 drill samples, from the splitter at the drill site.
Periodically, ALS personnel transported the samples to the ALS facility in Hermosillo, where they were
prepared for later assay. The sample-preparation scheme for the MAS samples followed standard ALS
protocols:
• assign bar codes to samples as received
• dry at 80-100 degrees C
• crush to 70 percent < 10 mesh
• pulverize to 85 percent < 200 mesh
• riffle-split to 50-gram sample (would have been 120 grams for precious metals)
• prepare a second pulp sample on every 25th sample.
• a MAS-provided standard pulp is inserted with every 20 drill-sample pulps
• samples are shipped by UPS ground to Tucson (Arizona), thence by UPS air to ALS in
Vancouver
CAM made an unannounced visit to ALS’s Hermosillo laboratory on October 31, 2006 and found it to be
organized, clean, and well-staffed. Compressed air is used to clean equipment between usages.
13.2.2 Sample Analysis
All assaying was carried out at the ALS Chemex laboratory in Vancouver, BC. ALS is certified ISO
9001:2000 and ISO 17025:2005 at all its facilities, including Hermosillo and Vancouver. The method
used for the analyses was ALS’ ME-ICP61 package for 27 elements, comprising four-acid digestion
followed by ICP analysis of the solute. Samples showing more than 10,000 ppm Cu by ICP analysis were
additionally analyzed by three-acid (hydrofluoric, nitric, perchloric) digestion, followed by hydrochloric
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acid leach, and atomic-absorption analysis of the leachate. Silver (Ag) was additionally determined, on
samples showing more than 300 ppm Ag by ICP, by a similar process as for copper.
The 27 elements determined by ICP were Ag, Al, As, Ba, Be, Bi, Ca, Cd, Co, Cr, Cu, Fe, K, Mg, Mn,
Mo, Na, Ni, P, Pb, S, Sb, Sr, Ti, V, W, and Zn.
Skyline Laboratories also performed oxide-Mo determinations for the oxide zone and approximately 30
feet of the sulfide zones in holes VMRC0106 to VRRC0306. This was for the purpose of differentiating
between Mo occurring as molybdenite (molybdenum sulfide) and Mo occurring as ferrimolybdenite
(hydrated ferrour molybdate), or other oxide compounds.
13.2.3 QA/QC (Quality Assurance/Quality Control)
QA/QC for VM’s 2007 drilling program was overseen by Doug Hartzell, a consulting geologist and
Qualified Person of Reno, Nevada, on behalf of Mine & Quarry Engineering Services, Inc. of San Mateo,
California.
In addition to the routine quality control work carried out by ALS Chemex, Virgin Metals established a
quality-control protocol consisting of the routine use of sample duplicates, blank samples, and certified
assay standards for copper and molybdenum, obtained from WCM Sales Ltd., Burnaby B.C., and for
tungsten, obtained from Shea Clarke Smith in Reno, Nevada.
CAM received on 28 January 2008 a description of the standards from Mr. Lloyd Twaites of WCM
Minerals of Vancouver. According to WCM, the Cu standards are prepared to 100% minus 200 mesh,
then homogenized in a V-blender. Normally a blend of 2 or 3 ores is included in each standard,
permitting variations in the Cu, Mo, Ag, and Au contents in a specific standard.
The Cu-Mo standards are made of ores from porphyry-copper-molybdenum ores from Highland Valley
and Endako, (British Columbia. Cu standards 110, 111, and 119 contain chalcopyrite, bornite,
molybdenite, and tetrahedrite in a silicate gangue matrix. Cu standards 130, 131, and 132 contain
chalcopyrite, bornite, and molybdenite, with low gold values in calc-silicate (skarn) gangue.
VM identified the standards by designations # 1 to 4 and # A to C, to ensure double-blindness of the

standards. Metals contents of the standards are shown in Table 13-1.
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Table 13-1
Metal Contents of Commercial Standards
Molyb-
Standard Copper Silver Gold
denum
Number % g/t g/t
%
CU110
0.90 0.371 5 No value
(#A or #1)
CU111
0.83 0.115 105 No value
(#B)
CU119
0.51 0.068 158 No value
(#C)
CU130
0.44 0.074 36 0.93
(#3)
CU131
1.36 0.052 38 1.04
(#2)
CU132
0.17 0.046 27 0.17
(#4)
Each standard is assayed on behalf of WCM Minerals at a number of labs, which from time to time can
include: ALS Chemex, Acme Analytical, Assayers Canada, Eco-Tech, Global Discovery Lab (Teck/
Cominco), OMAC, Highland Valley Copper Mine Lab, Endako Mine Lab, and SGS.
All of the QA/QC data for the Virgin drilling were reviewed by a CAM using cumulative frequency plots
and scatter plots (including log-log) for standards and blanks. Scatter plots, both transformed and log-log,
were used to review duplicate sample results. CAM noted the number of anomalous values on these plots
for both copper and molybdenum as tabulated in the table below. In some cases it was not entirely clear
that some values weren't actually anomalous; these were noted as “suspect”.
Additionally, CAM requested Skyline Cu analyses of 25 additional samples (selected by VM to represent

a broad variety of grades and matrix types), using a 1-grram pulp sample for digestion, instead of the
standard 0.2 grams. The results showed no significant differences from the 0.2-gram aliquots.
Results are in Table 13-2.
Table 13-2
Anomalies in QA/QC Checks
number anomalous percent anomalous
number anom +
QA/QC type
samples Mo Mo Cu Mo susp Cu
Mo*
ALS Skyline dups 262 0 0 2 0 0 1
ALS Skyline dups 2-5 188 0 0 0 0 0 0
Field blanks 239 1 2 1 0.4 1.3 0
Field duplicates 237 4 5 3 1.7 3.8 1
Pulp duplicates 173 0 0 0 0 0 0
Standard 2 35 1 0 1 2.9 2.9 3
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Table 13-2
Anomalies in QA/QC Checks
number anomalous percent anomalous
number anom +
QA/QC type
samples Mo Mo Cu Mo susp Cu
Mo*
Standard 3 37 1 0 1 2.7 2.7 3
Standard 4 33 0 0 0 0 0 0
Standard A 66 1 0 1 1.5 1.5 2
Standard B 33 0 0 0 0 0 0
Standard C 33 0 0 0 0 0 0
1 gram Skyline 25 1 0 1 4 4 4
Total QA/QC Samples 1361 9 7 10 0.7 1.2 1
When evaluating QA/QC data CAM uses the following criteria for the frequency of anomalies:
• less than 1% Excellent;
• 1 to 2% Good;
• 2 to 3% Acceptable; and
• Over 5% Unacceptable.
Anomalous percentages between 3% and 5% fall in a gray area for a decision on acceptability is made on
a number of anomalous samples as well as a percentage (these the higher the number of anomalous values
the less acceptable).
Except for the “Field duplicates” all of the QA/QC checks are at least acceptable. The 1 g checks fall in
the gray area but CAM does not regard this as significant because only one anomalous sample was found.
On the basis of this review CAM believes that the VM data is suitable for use in preparation of a grade
model suitable use in for feasibility and financial decisions. CAM recommends that sample preparation
for the field duplicates be reviewed to see if a finer crush or larger sample size can reduce the number of
anomalous values.
13.3 Adequacy of Procedures
CAM believes that no preparation or assaying of samples were carried out by any employee, officer,
director, or associate of Virgin Metals or affiliates.
CAM believes that the sample preparation and assaying were carried according to a high standard, and
with a sufficient level of security, that the integrity of samples and the quality of results are assured.
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14.0 DATA VERIFICATION
14.1 Peñoles-COMINCO data
14.1.1 Database
The database used for Resource estimation was assembled by CAM using data provided by Virgin
Metals. It consisted of drilling data from VM’s 2006 and 2007 campaigns, and COMINCO’s 1970’s
campaigns. In 2007, VM-MAS acquired the Bacanora concession, and the data (but not actual samples)
from the Peñoles-COMINCO drilling on the Bacanora concession. No geological or other reports were
obtained. The COMINCO exploration data database consisted of information on drillhole collars,
downhole surveys, assays and geological logs. Geological descriptions are discussed in the geology
section of this report. Collars, downhole surveys and assay information are discussed in this section.
While there was no reason to doubt the validity of the COMINCO database, core and pulps have been lost
during the past 30 years, so any checks must consist of verification of the paper trail and comparison with
current drilling.
Scanned images of COMINCO drillhole logs and assays were compared to the spreadsheet database
provided by VM-MAS. It was determined that there were missing drill logs and assays for entries in the
database, and some scanned images for holes which did not appear in the database. An average of about
6 intervals per hole were checked for the holes which had scanned logs and which also appeared in the
database. Generally each interval was checked for from/to, Cu%, Mo% and WO3%. In some instances,
duplicate assays were also present. A total of 41 holes were checked, with a total of 1255 individual
values. In all cases, the values questioned by CAM because they appeared anomalous had been correctly
entered from the original source documents. Four errors were encountered. One appeared to be a
typographical error and the other three were either missing or out-of-sequence intervals. Thus, the
database accurately reflected the source documents.
There were two general problems observed in the database. The primary problem involves assays for
Mo% which had been reported to a precision of 3 decimals on the drillhole/assay sheets, but were
truncated to two decimals in the database. This issue was corrected by Virgin in the final database
provided to CAM. The second problem involved averaging where two assays were reported on the
drillhole/assay sheets. This would be acceptable, except that it was not always done and sometimes only
the first value was used.
Other issues included some confusion regarding the WO3 assay units (W versus WO3)and WO3 assays not
being entered into the database. Missing WO3 assays appeared to be widespread.
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In a couple of instances, the bottom 30 meters or so of a hole were not included in the database. In
addition, some holes were not in the database, presumably because of low assay values or distance from
the main area of mineralization.
The procedures described below in Section 14.3.1 for the VM drilling, were also applied to the
COMINCO database.
14.1.2 Collars
The VM collars were surveyed using modern GPS methods in the WGS 84 coordinate system, while the
1970’s COMINCO collars were surveyed in a local coordinate system. VM re-occupied a number of
collar locations and monuments from the Cominco campaign, and CAM conducted a statistical analysis to
derive a transform from the old Cominco coordinate system to the current system. CAM has done this for
a number of projects, and normally uses a linear regression for new X or Y and old X and Y. There were
a total of 19 common points which had coordinates in both the WGS 84 system and the old Cominco
coordinate system.
As is almost always the case, some of the points were statistically anomalous, and by eliminating three of
these points, CAM was able to reduce the standard error of regression to 2.87 in Northing and 1.41 in
Easting. This transformation with the three points eliminated were used to convert all Cominco points to
WGS 84 points.
14.1.3 Assays
The COMINCO data indicate that the following assay labs were used for various batches of surface and
drill samples, and for checks during the period 1971-1979:
• Oficina de Ensaye de Minerales, Hermosillo, Sonora
• Ensayadores Quimicos del Noroeste, SA de CV, Hermosillo, Sonora
• Technical Services Laboratories, Toronto, ON, Canada
• Rocky Mountain Geochemical, Midvale, Utah
• Southwestern Assayers, Tucson, AZ
• Hawley & Hawley, Inc., Tucson, AZ
Since the 1970’s, the above-listed labs have been acquired by others or have otherwise gone out of
business as independent entities. Therefore, limited information is available about procedures and
certification. During the 1970’s, the four laboratories in Ontario, Utah, and Arizona had reputations for
high-quality procedures and results.
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14.1.4 Comparison of Cominco and VM-MAS Drilling
As noted above, it is not possible to directly check the Cominco analyses. Any validation of the Cominco
assays must be done on a statistical basis, by comparing the new version results to the old Cominco
results. The standard method of doing this comparison is to used twin holes or other samples that are
very close to each other.
The comparison is complicated for Los Verdes, because of the uncertainty in downhole surveys. The
XYZ location of all samples was calculated and groups of interest within a specified distance of each
other were compared. The comparison distance chosen was a 7.5-meter radius. CAM used a standard
statistical t-test, along with scatter and qqplots (plots of one group of data against another in with both in
increasing order) for this comparison.
Results of this comparison are summarized in Table 14-1, showing Cominco versus VM-MAS drilling
and VM-MAS diamond drill holes versus RC holes.
Table 14-1
Comparison of Samples within 7.5 meters
Hole sets Metal Number First Second Probability*
Comino vs VM Cu 1198 0.432 0.437 0.7789
Cominoc vs VM Mo 1173 0.1061 0.1027 0.7042
VM DDH vs RC Cu 800 0.226 0.270 0.0159
VM DDH vs RC Mo 800 0.1048 0.0944 0.2079
*probability that first set is statistically equal to second set
With the exception of Cu for the VM core holes versus the VM RC holes the comparison is excellent.
CAM is not greatly concerned about the apparent high bias of VM RC against VM diamond drill holes
because of the uncertainty in hole location, the fact that the difference is just barely statistically
significant and the fact that copper is responsible for only about one-third of the revenue stream. CAM
does recommend twinning of diamond hole versus RC holes through the SAM.
14.1.5 Suitability of the COMINCO database
On the basis of this review, and the comparison of the Cominco data to VM data, CAM believe the
database including the Cominco data is suitable for the calculation of a 43-101 compliant resource.
The final data on Cominco and VM holes was provided to CAM as separate CSV files. While this is
acceptable, the best practice is a single database with a clear pedigree for all data, CAM recommends that
VM prepare a single database for the project, probably in Microsoft Access, with appropriate links to
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either the assay certificates for the VM holes or the scanned documents for the Cominco data. During the
assembly of this database, Cominco WO3 analyses should be entered and checked.
The VM analyses indicate that silver may provide some additional revenue. As far as is known Cominco
data does not include any silver analyses. It is recommended that silver and tungsten be included in any
future modeling runs.
14.2 VM-MAS 2006 drilling
Results from the 45 reverse-circulation holes drilled by VM-MAS were analyzed by CAM in the previous
43-101 Technical Report (CAM, 2007). Some were exploration holes far to the east, and only 30 holes
were within the mineralized zone, but outside the Bacanora concession, which was not at that time
controlled by VM-MAS. These 30 holes defined the mineral Resources estimated by CAM in 2007.
Verification of the data from these holes is discussed in CAM (2007).
14.3 VM-MAS 2007 drilling
14.3.1 Initial data checks
CAM spot-checked the database against assay certificates against the database for the VM drilling and
found no errors which indicates the VM assays have been correctly entered.
In order to assure consistency and minimize errors and costs, CAM uses automated data processing
procedures as much as possible in constructing and auditing geologic databases. These procedures
depend heavily on consistent and non-duplicated field labels and drillhole IDs. While many of the issues
flagged by these automated procedures are obvious, CAM requires a clean and consistent database before
proceeding with geological modeling. Common inconsistencies include:
• Misspellings.
• Confusion of 0 (zero) and O or o.
• Inconsistent use of upper and lower case.
• Inconsistent usage or space _ and -.
• Trailing, leading or internal blanks. (CAM routinely changes all blanks to _ to positively identify
this problem)
• Inconsistent use of leading zeros in hole IDs.
• Inconsistent analytical units (e.g. PPM, PPB, opt %)
• Inconsistent coordinate systems and units (e.g. NAD27 and state plane and mine grid: ft and m).
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For manually generated databases, CAM generally regards an error rate of less than one in 500 as good,
an error rate of less than one in 100 as acceptable and an error rate greater than two in 100 as
unacceptable. The acceptability or unacceptability of the database also depends heavily on the impact of
the errors. Hence the values for acceptability in unacceptability may easily change by an order of
magnitude depending on the nature of the errors. For example a dropped decimal point in a value of 37
for an actual value is 0.37 is much more serious than the entry of a 0.36 for a 0.37. For computer-
generated databases, any errors may be indicative of problems in data processing procedures and these
require resolution of the source of the problem.
CAM also reviews the procedures used to prepare the database and is particularly critical of the common
practice of cutting and pasting to obtain the database.
Different companies and even geologists within the same company have different methods for drilling,
sampling, sample prep and analysis and record-keeping. In some cases it may be necessary to de-weight
the results of certain drilling campaigns or types of drilling.
Over the years CAM personnel have developed a procedure for mathematical and statistically validating
exploration databases. This check procedure includes:
• Check for duplicate collars.
• Check for twin holes.
• Check of surface collared holes against surface topography
• Check for statistically anomalous downhole surveys.
• Check for overlapping assays
• Check for 0 length assays
• Review of assay statistics by grade class.
• Review of assay statistics by length class.
• Checks for holes bottomed in ore
• Check for assay values successively the same.
• Check for assay spikes.
• Check for downhole contamination by decay analysis.
• Check of total grade thickness in toto and by mineral zone
CAM uses values flagged by these automated procedures as a starting point for database review>
Experience has shown that if the error rates in the statistically anomalous values is acceptable, then the
entire database is generally acceptable.
A few anomalies were noted, and forwarded to VM for resolution, but the number and type of anomalies,
with the exception of downhole surveys, were within industry norms for databases of this size, and even if
the anomalies turn out to be errors, they would have no effect on the overall resource estimate.
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On the basis of these statistical checks, and the checks of data entry discussed previously, CAM believes
that the exploration database has been prepared according to industry norms and is suitable for the
development of geological and grade models.
14.3.2 Downhole Surveys
A number of the 2007 and 2006 VM-MAS drillholes showed significant deviations between the azimuth
at the collar and the first downhole survey point. A few of these had been noted in CAM's previous
review but were not believed to have a substantive effect on the overall resource estimate in terms of
tonnage or metal quantity. CAM requested that VM review these collars. Several were field-checked and
the as-drilled collar azimuths were found to be correct.
To assess the effect of these downhole surveys anomalies, CAM calculated the difference in the location
of the hole, by first assuming that the hole deviated at the survey measurement point, and by then
assuming the hole deviated at the previous survey point. Of the holes with downhole surveys, 14 show
deviations of more than 5 m, nine show deviations of more than 10 m and four show deviations of more
than 20 m depending on the desurvey assumptions. For a relatively small orebody, deviations of this
amount are significant. While CAM believes that the resource estimate is acceptable for use in feasibility
decisions for determining tonnes and grade, additional drilling is required before the pit limits can be
finalized.
Experience with other drilling programs shows that hole deviations are generally consistent. CAM
therefore believes the Los Verdes database is suitable for calculation of the grade and tonnage, but that
there may be uncertainties, locally up to 30 meters, in the location of Resource-grade material.
CAM recommends that gyroscopic methods be used to precisely define the location of the contact of
SAM with barren material in additional drilling, before final pit design is done. It is not possible to define
how many additional holes are necessary until preliminary pit is available, but CAM believes that 10 to
15 additional holes will probably be sufficient. Some of these holes should be vertical and the first two
and every fifth hole thereafter should be downhole-surveyed twice.
14.4 Final database used for Resource Estimation
Basic statistics on the final assay database used for Resource estimation at Los Verdes are given in Table
14-2.
Table 14-2
Drilling Statistics from Assay Database
Item Number Length (m)
Holes 171 20514.1
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Table 14-2
Drilling Statistics from Assay Database
Item Number Length (m)
Holes with non-collar downhole
34 4322.6
surveys
Non-collar survey records 53 3839.0
Downhole surveys up 1 0.0
Downhole surveys down 223 3839.0
Assay intervals (Mo) 12027 29710.7
Assayed intervals (Mo) 11930 27485.5
CAM opines that the Los Verdes database, including the Cominco data, is suitable for the estimation of a
43-101 compliant Resource.
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15.0 ADJACENT PROPERTIES
During 2007, VM acquired the Bacanora concession from Teck-Cominco. The mineral Resources
estimated in this report do not extend outside properties totally controlled by VM.
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16.0 MINERAL PROCESSING AND METALLURGICAL TESTING
Initial work on the metallurgy of the Los Verdes mineralization indicates that standard grinding and
floatation will yield saleable concentrates of copper and molybdenum sulfides.
The principal economic minerals at Los Verdes are molybdenite, ferrimolybdite, chalcopyrite, chalcocite,
and to a lesser extent wolframite, scheelite, ferritungstite, and copper oxide/carbonate minerals. Although
technologies for recovery of molybdenite, chalcopyrite, chalcocite, and wolframite and scheelite are
globally well-known and relatively straightforward by flotation and/or gravity methods, the metallurgy of
ferrimolybdite has been less thoroughly investigated.
Peñoles (1979) reported that recovery tests (type unspecified) were performed on Cu-Mo-W
mineralization, with recoveries in the 75 percent to 85 percent range for Cu and Mo, and “unsatisfactory”
recoveries for W. No further details of the Peñoles tests are available.
Metallurgical test work has been carried out on drill chips from reverse circulation drilling at the labs of
RDI in Denver (RDI, 2008) and on core at the labs of G and T Metallurgical Labs in Kamloops, BC
(G&T, 2007). Both sets of testwork demonstrate recovery of copper and molybdenum to a bulk flotation
concentrate at recoveries between 85 and 90% at grinds between 100 and 150 microns.
Further testwork shows that regrinding and cleaning the bulk concentrate produces copper grades suitable
for a saleable copper concentrate, from which molybdenite can then be separated by depression of copper
minerals. Multiple stages of cleaning of the resulting molybdenum concentrate results in a saleable
molybdenum concentrate containing greater than 50% Mo.
Gravity testwork on tailings from the flotation indicated the potential to recover a concentrate of the
tungsten- bearing minerals scheelite and wolframite. The occurrence and mineralogy of tungsten
minerals is variable and additional work is required to determine whether a saleable tungsten concentrate
can be recovered.
As mentioned in Section 9 above, a limited suite of analyses for Oxide Molybdenum (OxMo) by Skyline
Laboratories for Virgin Metals indicates that nearly all the Mo in the oxide zone is in the form of oxides
(mainly ferrimolybdite, Fe2(MoO4)3·8(H2O), whereas essentially all Mo in the supergene and deeper
zones is in the form of molybdenite MoS2. Visual logging of drillhole samples indicates that the
transition from ferrimolybdite (bright yellow powder) to molybdenite (silvery-colored flakes) is very
sharp, usually within one meter.
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VM have decided that the molybdenum-oxide metallurgy will not be investigated until the molybdenum-
copper sulfide mineralization has been shown to be economically-extractable. Likewise, only very
preliminary testing was undertaken on the tungsten mineralization.
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17.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES
Definitions used in this section are consistent with those adopted by the Canadian Institute of Mining,
Metallurgy and Petroleum ("CIM") Council in December 2005, as amended, and prescribed by the
Canadian Securities Administrators' National Instrument 43-101 and Form 43-101F1, Standards of
Disclosure for Mineral Projects.
17.1 Geological Modeling
As indicated previously in this report, the mineralization which is amenable to concentration by

conventional flotation is a lens consisting of mixed mineralization (i.e. chalcocite-enriched hypogene
chalcopyrite, bornite, and molybdenite) on the top, with non-enriched hypogene sulfides below. This lens
of mineralization is referred to as SAM (Sulfide and Mixed). Visually examination of assays on a hole-
by-hole basis indicates molybdenum and copper grades within the SAM are fairly homogeneous and
average about 10 times the grade outside of this volume. Directly above the SAM there is non-sulfide
mineralization characterized by relatively high molybdenum grades in ferrimolybdite, with low, leached,
copper grades.
Cross-sections showing interpreted mineral zones, trending both northwest and northeast, were prepared
by the Los Verdes staff and transmitted to CAM as AutoCAD DXF files. These sections showed the
drillholes and interpreted mineral zones. Any differences between the computerized drillhole database
and the drillholes shown on these sections were resolved by reference to original drill data, such that the
revised mineralized shapes match the computerized database. CAM then prepared a mineral zone model
using these sections with the northwest-trending (cross) sections taking precedence over the northeast-
trending (long) sections. The four northwest-trending sections were not exactly parallel and this resulted
in an additional data processing step. The cross-sections were then resolved to level plans spaced at 10-
meter elevation intervals.
17.1.1 Block-Model Construction
Blocks associated within each 10 m plan-interpreted level were assigned value 1, SAM. Any blocks
above the highest SAM were assigned value 2, indicating oxide. This interpretation of oxide is somewhat
conservative, since oxide material with significant mineralized intercepts can be found around the
periphery of the oxide zone as defined by this method. If a viable process for recovery for molybdenum
from oxide can be demonstrated, additional geological interpretation would be required to define the
geometry of this oxide material.
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Two smaller zones below the main SAM which contained ore grade mineral were also interpreted. These
two zones contained only a small number of composites, and have been categorized as Inferred
Resources.
17.1.2 Block-Model Validation
After the SAM and oxide models were constructed they were visually reviewed along each row, column
and bench for visual consistency. To test for the possibility of a geometric bias relative to the data used to
construct the model, CAM assigned all composites inside SAM a value of 1, all composites inside oxide
of value 2, and all other composites a default value of 9. These composites were then used to construct a
nearest-neighbor model with a pancake search of 150 x 150 x 5 meters. The count of blocks for the
nearest neighbor SAM model was 111% of that of the interpreted model, while the count of blocks for
oxide were 109% of the interpreted model. This difference of about 10% indicates that on average the
boundaries of the interpreted SAM and oxide model are geometrically conservative. Because of the
uncertainty in drillhole XYZ coordinates, CAM believes this conservatism is reasonable.
17.1.3 SAM Contact Profiles
Visually examination of the drillholes and the adit indicated that there were relatively long runs of
molybdenum in excess of 0.10 transitioning into barren rock where the molybdenum grade was below
0.02. To confirm the existence of this phenomenon and define it relative to the interpreted SAM shape,
molybdenum grade profiles were plotted using “box plots” relative to the SAM contact for 5 m
composites. The nature of box plots is explained in CAM, 2007. The box plots of the contact profile are
based on 64 drillholes which cross the SAM contact, 24 of which are Cominco holes. Figures 17-1 and
17-2 are box plots of Mo and Cu, respectively, showing distance from the SAM contact.
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Figure 17-1
Box plot for Mo vs. Distance from Contact
The box plots showed that, except for composites within 5 m of the SAM contact, the mean grade within
SAM appears to be above 0.1, while outside SAM the mean grade appears to be below 0.02.
Figure 17-2
Box plot for Cu vs. Distance from Contact
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A similar trend is observed in the copper contact plot (Figure 17-2), except copper grades increase with
distance from the contact. Possibly this is due to the observed fact that copper has been leached out of the
oxide zone above the SAM, and re-deposited (as chalcocite) within the SAM. It also suggests that instead
of a single SAM volume as used for the molybdenum model, it could be desirable to distinguish between
mixed and primary copper mineralization.
Because molybdenum is the primary economic element, accounting for approximately two-thirds of the
deposit value, it was decided to use a single SAM volume for purposes of resource estimation. Within
this volume it appears that molybdenum grade is quite homogeneous and is characterized by hard
boundaries. Because of uncertainty in the location of the SAM contact for molybdenum due to a
downhole survey issues (see below), it is not yet possible to precisely define the volume of SAM.
17.2 Surface Topography and Block Model Limits
Surface topography data with 5-meter contours were provided to CAM as an AutoCAD DWG file. CAM
extracted the contour lines as a series of XYZ points to use in preparing a surface topography model.
Based on the extent of the drilling, and the possibility that some scoping-level mine designs (including
dump layout) might be done using this model, CAM selected the geometric limits given in Table 17-1 for
the resource model.
Table 17-1
Model Geometric Parameters
Origin (Meters) Number of Block Size (Meters)
Northing 41000.00 Rows 400 Row 5.00
Easting 80500.00 Columns 400 Column 5.00
Elevation 500.00 Benches 150 Bench 5.00
Rotation Angle (0.00)
The model limits are much larger than needed to define the SAM zone and any possible open pit. These
large limits were selected in anticipation that the Cominco drilling could include additional ore zones
which might be included in the model. It is recommended that the number of rows or columns and
benches be reduced in future modeling runs. Maps showing drillhole collars and traces of the SAM area
of mineralization are shown in Figures 9-XX and 11-1.
17.3 Desurvey
Desurveying is how the data on depth, azimuth and dip is converted to X, Y, Z locations in space. A
significant source of differences in Resource estimates done in different software systems is how the
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holes are desurveyed. All of the interpretive work was done by VM and CAM using sections and plans
produced in the MicroMine software system, whereas the Resource modeling was done with
MicroMODEL software. The MICROMINE software system desurveys the holes by splining between
survey points, while the MicroMODEL software system assumes the hole is straight from survey point to
survey point. There are several different spline algorithms, so CAM converted these to azimuth and dip
for use in MicroMODEL. A check of the coordinate values calculated in MicroMODEL and those
supplied in MICROMINE were all within 0.1 meter, indicating that hole location is consistent between
the two software systems.
17.4 Statistics and Geostatistics
17.4.1 Compositing and Composite Statistics

.
The assay database was composited to 5 m length composites (2.5 m minimum length) and a mineral zone
code assigned from the mineral zone model based on the 5 x 5 x 5 m block within which the centroid of
the composite fell. Basic composite statistics for each mineralized zone are given in the Table 17-2.
Table 17-2
Statistics for 5-meter composite samples.
COMPOSITE COUNT UNTRANSFORMED STATISTICS (% Mo)
Mineralization Rock Missi Below Above Inside Std.
Min. Max. Mean
Name Code ng Limits Limits Limits Dev.
SAM 1 25 0 0 1370 0.0000 1.9758 0.1415 0.0328
Oxide 2 37 0 0 524 0.0000 1.4521 0.0849 0.0114
MZ3 3 0 0 0 60 0.0003 0.3617 0.0515 0.0044
MZ4 4 0 0 0 21 0.0007 0.2126 0.0804 0.0057
OUTSIDE 9 231 0 0 2194 0.0000 1.0660 0.0109 0.0020
OUTSIDE
9999 0 0 0 62 0.0005 0.0263 0.0026 0.0000
MODEL
ALL 293 0 0 4231 0 1.9758 0.0631 0.0166
* These geostatistical rock codes are different than the field logging codes discussed elsewhere in this report.
17.4.2 High-Grade Restriction
In many metals deposits, there are some very high-grade analyses which may not be recovered in actual
mining. The high-grade values may actually be representative of the deposit, but an unacceptable risk of
grade over-estimation may occur by not restricting their influence, because of the very small number of
high-grade samples and their high variability. For this reason, high-grade values are often restricted by
limiting the distance that high-grade values are projected (outlier restriction), or by reducing high-grade
values to a defined maximum (“capping”), or by eliminating the values altogether.
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The cumulative-frequency plot is one of the most common methods of determining whether high-grade
restriction is required. Log cumulative frequency plots of all Mo and Cu Composites are shown in
Figures 17-2 and 17-3.
These cumulative frequency plots show that all Mo and Cu composites can be modeled by a mixture of 3
or 4 lognormal distributions and that there is no need to cap composites prior to estimation. The
cumulative frequency plots of all elements (molybdenum, copper, tungsten and silver), both in toto and by
mineralization group, appeared to be log-normal with no need for capping. Hence, no cap grades were
applied to the resource estimate. Even though the composite cumulative frequency shown no need for
capping, there is some risk that, due to the geometry of the samples, statistically anomalous high-grade
blocks will occur. To test for this possibility CAM also constructed cumulative frequency plots for
copper and molybdenum for the SAM blocks. These plots are not included in this report but no
anomalous values were found.
Figure 17-2
Log Cumulative Frequency Plot (Mo ppm)
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Figure 17-3
Log Cumulative Frequency Plot (Cu ppm)
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17.4.3 Geostatistics
Ominidirectional log variograms were constructed for Mo and Cu, both in toto and by mineralization
group, transformed to relative and interpreted. This technique is a standard geostatistical practice for data
with a log-normal distribution. The variograms all showed a relatively high nugget and all could be
modeled by two nested spherical structures. Variograms for composites for Mo for SAM and oxide are
shown in figures 17-4 and 17-5 respectively.
CAM briefly reviewed directional variograms for evidence of anisotropy but there were insufficient data
to allow any anisotropy to be definitely interpreted.
17.4.4 Resource Estimation
Resource estimation was done by ordinary kriging, using the relative variograms with hard boundaries by
mineralization group. Because of the statistically significant difference in average grades among the
mineralized zones, hard boundaries were used during interpolation. The search radius was 100 m, with a
maximum of eight and a minimum of three composites required for estimation for SAM, oxide and the
two smaller zones. Outside of these interpreted zones a sector search was used, the sectors corresponding
to the face of a cube, with a maximum of two composites per sector. This type of search is preferred
outside constrained volumes because it ameliorates the tendency of densely-drilled, high-grade areas from
influencing sparsely-drilled, low-grade areas.
17.4.5 Resource Classification
There are no precise definitions of Measured, Indicated and Inferred Resources: the definitions that are
provided are non-quantitative since each mineral deposit is different. Only Measured and Indicated
Resources may be used in a feasibility study, while Inferred Resources have sufficient uncertainty that
they cannot be totaled with Measured and Indicated Resources.
Since the usual standard of accuracy of a feasibility study is ±15%, CAM believe that Resources
classified as Measured and Indicated should contain not less than 85% of the predicted tonnes, and should
contain metal at the 95% level of confidence for volumes corresponding to annual and total in-mine
tonnages. Additionally, CAM believes that Measured Resources should support detailed mine design
without additional drilling except as required for breakage and ore control, while additional drilling may
be required prior to mining for Indicated resources.
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Figure 17-4
Omnidirectional Relative Variogram Mo (from log) for SAM
Figure 17-5
Omnidirectional Relative Variogram Mo (from log) for Oxides
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CAM generally uses the criteria that, within interpreted geological shapes, Resources may be classified as
Measured and Indicated out to the range of the variogram.
Outside of interpreted geological shapes, Resources may be classified as Measured or Indicated out to
0.707 times the range of the variogram. The block must be within an area drilled at a spacing equal to or
less than the range of the variogram. CAM adjusts these criteria depending on the deposit and the ratio of
the nugget to sill.
For Los Verdes, CAM classified blocks in SAM and oxide as Measured if within half of the range of the
variogram, and if interior to drilling in the interpreted shape for SAM and oxide. Blocks not interior to
the drilling, or between 0.5 and 1 times the variogram range from the nearest sample point, were
classified as Indicated.
CAM believes these criteria are justifiable, and that tonnes within SAM have a reasonable expectation of
being mined. However, additional drilling is required along the boundary of the SAM to precisely define
the contact, due to the issues with downhole surveys discussed earlier. Within the oxide in Sam there is
considerable drilling and no inferred blocks. Outside of the two interpreted volumes there are a number
of ore grade intercepts which do not necessarily form coherent mineable units.
CAM classified a block as Inferred if it was within 30 m of the nearest sample point and the block was
estimated by least 4 drill holes.
17.4.6 Resource Tabulation
Resources were tabulated at various cutoff grades using the densities of 2.406 for SAM, 2.239 for oxide,
and 2.426 as discussed in Section 12.3 of this report. Table 17-3 presents the resource as calculated by
the kriging method, at an equivalent cutoff grade of 0.03 percent molybdenum equivalent with copper
valued at 1/10 molybdenum.
Table 17-3
Contained Contained
Tonnes % Mo % Cu
lbs Mo lbs Cu
Non Oxide
Mineralization
Total 8,665,000 0.130 0.601 24,912,000 114,806,000
Oxide Mineralization
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Table 17-3
Contained Contained
Tonnes % Mo % Cu
lbs Mo lbs Cu
Total 4,409,000 0.077 0.093 7,506,000 9,038,000
Oxide and Non Oxide

Mineralization
Total Measured 7,088,000 0.110 0.458 17,103,000 71,556,000
Total Indicated 5,986,000 0.116 0.396 15,315,000 52,288,000
Total Measured and
13,074,000 0.113 0.430 32,418,000 123,844,000
Indicated
Total Inferred 4,392,000 0.063 0.073 6,062,000 7,058,000

Derived values in the table have been rounded.
CAM are of the opinion that the Resource estimates presented above are fully compliant with NI 43-10,
and are suitable for use in feasibility studies to define mineral Reserves.
17.5 Mineral Reserves
No Reserves have been defined in this report.
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18.0 OTHER RELEVANT DATA AND INFORMATION
The undersigned is not aware of any further information, the exclusion of which would make this report
misleading.
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19.0 ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT
PROPERTIES AND PRODUCTION PROPERTIES
Los Verdes is not currently considered a development or production property.
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20.0 INTERPRETATION AND CONCLUSIONS
1. Mineralization at Los Verdes is hosted in a granodiorite cut by veins, stockworks, and

tourmaline-bearing breccias, similar to other copper-molybdenum systems in Sonora.
2. The drilling program carried out during 2006 and 2007 was successful in meeting the original
objective of defining a Resource of Mo-Cu-(W) mineralization of considerable economic
interest, and in confirming the validity of historic 1970’s drilling.
3. The sampling database is of sufficient quality and quantity to define NI 43-101-compliant
mineral Resources. Additional work is needed to establish the short range plan mineable
continuity in these areas and provide information on potential ore loss and dilution.
4. Metallurgical tests indicate that conventional flotation of sulfide mineralization can potentially
produce marketable concentrates of copper and of molybdenum.
5. A considerable resource of oxide molybdenum mineralization exists, which has economic
potential and needs further metallurgical evaluation.
6. The Los Verdes property shows considerable economic potential, and is deserving of a full-
blown Feasibility Study
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21.0 RECOMMENDATIONS
1. The Los Verdes deposit merits further evaluation. Continued work is recommended to
complete a Prefeasibility Study, and thereafter a Feasibility Study for production of the sulfide
copper-molybdenum Resource at Los Verdes. The recommended work is described in the
Work Program in Table 21-1, below, to be carried out during the last 3 quarters of 2008. This is
a single-phase program, as the property clearly demonstrates economic potential.
2. Investigation of the groundwater supply should continue.
3. An Environmental Impact Statement should be completed, and the process of applying for
operating permits should commence.
4. Some anomalies in downhole surveys precludes defining the exact location of the highly-
mineralized Sulfide and Mixed Zone (SAM) margins and hence the ultimate pit. Before a final
a design is done it will be necessary to drill several holes (CAM estimates from 10 to 15) and
survey these using gyroscopic methods of demonstrated reproducibility to define the final non-
mineral mineral contact.
5. Metallurgical testing is needed to verify and improve existing data on copper and molybdenum
recoveries and production of marketable concentrates.
6. A considerable tonnage of oxide mineralization contains molybdenum oxide (ferrimolybdite) at
a potential value at current prices in excess of $50 dollars per tonne, and probably not amenable
to flotation. CAM recommends that alternative metal recovery technology for this material be
examined. The oxide material would have to be mined in any case, in order to access the
underlying Mixed and Sulfide mineralization.
7. Additional core samples are needed to obtain added molybdenum-oxide mineralization for
metallurgical tests. Most of these holes could be those referred to in 4), above.
8. Investigation of the nature and validity of historic (Cominco) assays for tungsten should be
carried out, as well as additional metallurgical tests on tungsten recovery, so that accurate
tungsten values can be verified, and value assigned to tungsten in the Feasibility Study.
9. CAM recommends that sample preparation for the field duplicates be reviewed to see if a finer
crush or larger sample size can reduce the number of anomalous values found in QA/QC
checks.
10. CAM recommends that two of the drill holes with precise downhole surveys be twinned by
either RC or diamond to determine if the bias observed by CAM in RC versus diamond holes
actually exists.
11. The deposit contains silver and tungsten at grades that may be a byproduct economic interest.
As far as is known Cominco did not assay for silver and the Cominco assays for tungsten were
expressed as WO3. Because of time constraints and tungsten was not included in this resource
estimate. CAM recommends that both tungsten and silver be included in future resource
estimates.
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12. A coherent and uniform electronic database, probably in Microsoft access, should be compiled
for use in future Resource estimation work. This compilation is largely a clerical/technical job,
but needs proper geological supervision.
13. All of the metallurgical test work to date has been on composites, so a single volume containing
mixed and sulfide within the SAM is consistent with current data. However, if additional
metallurgical testing indicates differences between mixed and sulfides, an interpretation of the
differences between these two mineral types may be required. CAM recommends additional
interpretation, if warranted, as the project proceeds.
14. The Work Program shown in Table 21-1 needs to be funded.
Table 21-1
Recommended Los Verdes work program for 2008
Timing, 2008
Category Activity Objective Amount Unit Cost Cost, $US
(last 3 Quarters)
Mapping/ Determine district
Geology 60 sq km $500/sq km $30,000 X
Prospecting potential
Core Drilling Refine pit limits 600 m $ 100/m $ 60,000 X
Metallurgical
Drilling Core Drilling 400 m $ 100/m $ 40,000 X
samples
Geologist Drill geology 2 months $ 3000/mo $ 6,000 X
Measure recovery
Metallurgy Laboratory tests from sulfide and 3 campaigns $ 15,000 @ $45,000 X X
oxide ores
Engineering and Determine project
Feasibility Study 2000hrs contract $ 1,000,000 X X
design economics
EIS Complete EIS contractor n/a $ 20,000 X X
Environmental Submit permit
Permitting contractor n/a $ 20,000 X X X
applications
Drill and flow test
Infrastructure Water drilling contractor estimate $ 50,000 X
wells
Surface rights surface purchase X X
Property 400 ha $ 300/ha $ 120,000
acquisition or lease from ejido
TOTAL: $1,391,000
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22.0 REFERENCES
CAM, 2007, Technical report, Los Verdes property, Sonora, Mexico: report prepared by Fred Barnard
and Robert Sandefur of CAM (Chlumsky, Armbrust & Meyer LLC), dated 23 January 2007 and filed on
SEDAR on 29 January 2007.
CRM (Consejo de Recursos Minerales), 1994, Monografía Geológico-Minera Del Estado De Sonora:
English-language edition, 220 pages.
G&T, 2007, Los Verdes Copper-Molybdenum project - Preliminary metallurgical assessment: report
prepared by Tom ShoulDece, P.Eng. John Folinsbee, P.Eng. of G&T Metallurgical Services Ltd., dated
November 19, 2007. 104 pages in pdf format.
Peñoles (Servicios Industriales Peñoles S.A. de C.V.), 1979, Proyecto los Verdes: report dated July
1979, submitted to the then-owner of concessions then in force in the Moly Pit area east of the Bacanora
concession; contains 5 pages of text plus several maps and cross-sections, no assay results.
Sears, Barry & Associates, Ltd., 2005, Report on the Los Verdes Molybdenum-Copper Project,
Sonora, Mexico Prepared for Virgin Metals Inc.; 43-101-compliant report dated November 14, 2005; 50
pdf pages. Posted on the SEDAR website without the Title Opinion.
RDI, 2008, Metallurgical testing of composite sample for the Los Verdes Prospect, Mexico: consulting
report by Deepak Malhotra and Ed Bentzen of RDI (Resource Development Inc.) for Virgin Metals, Inc.,
dated 28 January 2008. 35 pages plus appenDeces.
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23.0 DATE AND SIGNATURE PAGE
23.1 Certificate of Author Fred Barnard
Certificate of Author:
a) Fred Barnard
1835 Alkire Street
Golden, Colorado 80401 USA
I am a consulting minerals geologist, affiliated with Chlumsky, Armbrust and Meyer LLC at 200
Union Boulevard, Suite 430, Lakewood, Colorado 80228, USA.
b) This certificate applies to the Technical Report titled Technical Report Los Verdes Project
Sonora, Mexico and dated 29 February 2008.
c) I am Professional Geologist #7432 in the state of California, in good standing. I obtained a B. A.
degree in Geology from the University of California at Berkeley in 1963 and a Ph.D. degree in
Geology from the University of Colorado at Boulder in 1968. Since 1968 I have practiced
continuously as a geologist in the mining industry, as a corporate employee of INCO and later of
Anaconda Minerals, and subsequently since 1985 as an independent consultant. I have been
involved in the geology, exploration, and evaluation of metallic and some non-metallic mineral
deposits in about 40 countries. I am a Fellow of the Society of Economic Geologists, a Member
of the Geological Society of America, and Certified Mineral Appraiser #2006-2 of the American
Association of Mineral Appraisers. I am highly fluent in Spanish, and am able to converse
readily with Spanish-speaking persons of all educational levels. I am a Qualified Person with
regard to porphyry-related molybdenum-copper deposits, within the meaning of National
Instrument 43-101, based on my education, professional registration, and experience with these
deposits.
d) I visited the Los Verdes property in Sonora, Mexico during 29-30 October, 2006 and the Minera
Alamos de Sonora office in Hermosillo, Sonora on 31 October, 2006, to review mineralization,
procedures and data storage, and the commercial sample-preparation facility.
e) I am responsible for Sections 1 to 13, 15, 16, and 18 to 23 of the cited Technical Report.
f) As defined in National Instrument 43-101, I am independent of the issuer, Virgin Metals Inc.
g) My only prior involvement with the Los Verdes property, subject of the Technical Report), was
the 2006 visit cited above, and the preparation of a Technical Report on the property dated 23
January, 2007, for Virgin Metals.
h) I have read National Instrument 43-101 and Form 43-101F1, and have prepared this report in
compliance with those documents.
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i) As of the date of this Certificate, to the best of the my knowledge, information and belief, the
Technical Report contains all scientific and technical information that is required to be disclosed
to make the technical report not misleading.
j) I hereby notify the British Columbia Securities Commission of my consent to the filing of this
Technical Report with stock exchanges and other regulatory authorities in Canada, and any
publication by them, including electronic publication in the public company files on their website
accessible by the public, of the Technical Report.
Dated this 29th day of February 2008
_______ ____________________
Signed, Fred Barnard, Ph.D. Sealed
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23.2 Certificate of Author Robert Sandefur
Certificate of Author:
a) Robert L. Sandefur
1139 S Monaco Pkwy
Denver, CO 80224
I am a Consulting Geostatistician, affiliated with Chlumsky, Armbrust and Meyer LLC at 200
Union Boulevard, Suite 430, Lakewood, Colorado 80228, USA.
b) This certificate applies to the Technical Report titled Technical Report Los Verdes Project
Sonora, Mexico and dated 29 February 2008.
c) I am a Certified Professional Engineer (Number 11370) in the state of Colorado, USA, and a
member of the Society for Mining, Metallurgy, and Exploration (SME). I graduated from the
Colorado School of Mines with a Professional (BS) degree in engineering physics (geophysics
minor) in 1966 and subsequently obtained a Master of Science degree in physics from the
Colorado School of Mines in 1973. I have practiced my profession as a geostatistical resource
analyst continuously since 1969. From 1969 to present, I have worked on mining projects in over
20 countries, have statistically analyzed more than 400 mineral deposits, and have personally
visited more than 50 operating metal mines. I have read the definition of “qualified person” set
out in National Instrument 43-101 and certify that by reason of my education, affiliation with a
professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the
requirements to be a “qualified person” for the purposes of NI 43-101.
d) I have not visited the Los Verdes property.
e) I am responsible for the preparation of sections 14 and 17 of this report.
f) I am independent of Virgin Metals and any of their subsidiary companies applying all of the tests
in section 1.5 of National Instrument 43-101.
g) My only prior involvement with the Los Verdes property, subject of the Technical Report), has
been the preparation of a mineralized tonnage and mineral Resource information for use in-house
or in preparation of the 23 January 2007 Technical Report, for Virgin Metals.
h) I have read National Instrument 43-101 and Form 43-101F1, and the report has been prepared in
compliance with that Instrument and Form.
i) As of the date of this Certificate, to the best of the my knowledge, information and belief, the
Technical Report contains all scientific and technical information that is required to be disclosed
to make the technical report not misleading.
j) I hereby notify the British Columbia Securities Commission of my consent to the filing of this
Technical Report with stock exchanges and other regulatory authorities in Canada, and any
CAM 067571 82
Los Verdes Project
29 February 2008
publication by them, including electronic publication in the public company files on their website
accessible by the public, of the Technical Report.
Dated this 29th day of February 2008
_______ ____________________
Signed, Robert L. Sandefur, P.E. Sealed
CAM 067571 83
Los Verdes Project
29 February 2008
APPENDIX A
CAM 067571 84
Los Verdes Project
29 February 2008
Table A-1
Drillhole Collar Data
(Drillholes available for resource estimation, not previously available)
ID Hole ID Northing Easting Elev Aim Incl. Depth company type
1 LVDD0107 3142032.3 681320.2 1074.2 0 -90 110 VM core
2 LVDD01A07 3142041.4 681332.2 1072.5 0 -90 175.2 VM core
3 LVDD0207 3142013.2 681289.9 1088.7 0 -90 76.05 VM core
4 LVDD0307 3141974.5 681240.8 1083.4 0 -90 173.8 VM core
5 LVDD0507 3141905.4 681248.2 1054.2 360 -45 172.5 VM core
6 LVDD1107 3142092.9 681215.1 1068.7 180 -60 25.55 VM core
7 LVDD1407 3142116.3 681371.8 1035.5 0 -90 101.3 VM core
8 LVDD14A07 3142116.6 681289 1041.1 90 -60 89.4 VM core
9 LVDD1907 3141994.8 681335.9 1056.7 0 -90 95.8 VM core
10 LVDD19A07 3141994.7 681336.6 1056.9 90 -50 120.9 VM core
11 LVDD2907 3141941.3 681101.9 1140.3 0 -90 149.9 VM core
12 LVDD2907I 3141941.0 681101.3 1140.2 70 -45 139.6 VM core
13 LVDD3507 3142089.4 681335.2 1047.0 0 -90 100.5 VM core
14 LVDD3607 3142088.6 681335.1 1046.9 125 -50 105.6 VM core
15 LVDD6307 3142068.6 681158.7 1091.3 150 -45 174.9 VM core
16 LVDD7107 3141832.4 680824.3 1157.5 0 -90 70.1 VM core
17 LVDD7207 3141881.0 680931.9 1152.1 0 -90 88.2 VM core
18 LVDD7307 3141940.3 681046.1 1156.7 0 -90 70.3 VM core
19 LVDDC23 3142032.4 681107.1 1106.2 150 -45 168.9 VM core
20 LVDDC3 3141901.6 681247.6 1054.1 330 -45 249.9 VM core
21 LVDDRC53 3142100.2 681197.5 1068.7 0 -90 169.8 VM core
22 LVRC0106 3142033.4 681319.5 1074.1 0 -90 172.21 VM RC
23 LVRC0206 3142015.6 681291.2 1088.8 0 -90 160.02 VM RC
24 LVRC0306 3141992.8 681252.5 1085.9 0 -90 153.92 VM RC
25 LVRC0406 3141879.8 681228.0 1056.7 0 -90 123.44 VM RC
26 LVRC0506 3141881.6 681227.9 1056.7 360 -45 173.74 VM RC
27 LVRC0606 3141965 681291.1 1060 0 -90 120.4 VM RC
28 LVRC0706 3142062.9 681296.4 1069.7 0 -90 144.78 VM RC
29 LVRC0806 3142042.7 681387.7 1040.5 0 -90 62.48 VM RC
30 LVRC0906 3142116.5 681288.8 1041.1 0 -90 121.92 VM RC

31 LVRC1006 3142084.4 681243.6 1069.4 0 -90 141.73 VM RC
32 LVRC1106 3142092.3 681215.1 1068.7 180 -60 135.64 VM RC
33 LVRC1206 3142141.8 681237.8 1034.6 0 -90 91.44 VM RC
34 LVRC1306 3142138 681330.1 1012.6 0 -90 91.44 VM RC

35 LVRC1406 3142115.6 681371.6 1035.5 0 -90 182.88 VM RC
36 LVRC1506 3142089.1 681411.5 1009 0 -90 65.53 VM RC
37 LVRC1606 3142133.1 681475 1036.8 0 -90 111.25 VM RC
38 LVRC1706 3142057.4 681482 1058.1 0 -90 99.06 VM RC
39 LVRC1806 3142037.8 681433.5 1053.8 0 -90 114.3 VM RC
40 LVRC1906 3141998.4 681335.7 1056.9 0 -90 102.11 VM RC
41 LVRC2006 3141957 681333.5 1039.8 0 -90 91.44 VM RC
42 LVRC2106 3141913.4 681294.7 1037.7 0 -90 86.87 VM RC
43 LVRC2206 3142146.5 681414 1010.2 0 -90 86.87 VM RC
44 LVRC2306 3142170.4 681509.9 1045.5 0 -90 91.44 VM RC
45 LVRC2406 3142146.5 681414 1010.2 0 -90 91.44 VM RC
46 LVRC2506 3142202.4 681498.6 1027.7 0 -90 91.44 VM RC
47 LVRC2606 3142212.9 681610.4 1029.6 0 -90 74.68 VM RC
CAM 067571 85
Los Verdes Project
29 February 2008
Table A-1
48 LVRC2706 3142129.6 681582.2 1045.1 0 -90 91.44 VM RC

49 LVRC2806 3142025.7 681502.6 1047.1 0 -90 68.58 VM RC
50 LVRC2906 3141941.4 681102.6 1140.3 0 -90 144.78 VM RC
51 LVRC3006 3142172.1 681672.3 1048.5 0 -90 68.58 VM RC
52 LVRC3106 3142139 681535 1062.2 0 -90 91.44 VM RC
53 LVRC3206 3142070.3 681546.9 1039.4 0 -90 91.44 VM RC
54 LVRC3306 3142167.6 681308.8 1007.1 0 -90 91.44 VM RC
55 LVRC3406 3142184.5 681173.5 1028.1 0 -90 74.68 VM RC
56 LVRC3506 3142089 681328.4 1046.9 0 -90 91.44 VM RC
57 LVRC3606 3142088.6 681329.8 1046.8 125 -50 91.44 VM RC
58 LVRC3706 3141990.3 681404.3 1030.7 0 -90 91.44 VM RC
59 LVRC3806 3141951.4 681399.5 1014.8 0 -90 91.44 VM RC
60 LVRC3906 3142159.8 681613.7 1046 0 -90 91.44 VM RC
61 LVRC4006 3142146.1 681329.6 1012.1 360 -60 92.96 VM RC
62 LVRC4106 3141946.9 681252.3 1066.7 0 -90 91.44 VM RC
63 LVRC4206 3142477.0 682140.3 1032.3 165 -45 160.02 VM RC
64 LVRC4306 3143001.9 682348.8 1121.2 0 -90 153.92 VM RC
65 LVRC4406 3142808.8 682591.1 1142.8 90 -45 153.92 VM RC
66 LVRC4506 3141823.1 682310.8 1044.3 65 -45 152.4 VM RC
67 LVRC4607 3142039.4 681319.2 1074.1 0 -90 121.92 VM RC
68 LVRC4707 3142039.8 681324.5 1073.6 0 -90 121.92 VM RC
69 LVRC4807 3142028.1 681320.2 1074.2 0 -90 121.92 VM RC
70 LVRC4907 3142039.8 681329.9 1072.6 0 -90 121.92 VM RC
71 LVRC5007 3142048.6 681319.9 1071.8 0 -90 121.92 VM RC
72 LVRC5107 3142040.2 681334.3 1072.7 0 -90 121.92 VM RC
73 LVRC5207 3141881.1 681227.8 1056.7 300 -45 89.92 VM RC
74 LVRC5307 3141840.9 681183.9 1063.8 315 -45 77.72 VM RC
75 LVRC5407 3141982.3 681245.3 1084.1 240 -55 137.16 VM RC
76 LVRC5507 3141856.7 681146 1088 0 -90 89.92 VM RC
77 LVRC5607 3141994.7 681094.9 1123.6 90 -55 121.92 VM RC
78 LVRC5707 3141906.5 681125.1 1113.4 0 -90 114.3 VM RC

79 LVRC5807 3141958.7 681331.6 1039.9 330 -50 115.82 VM RC
80 LVRC5907 3141906.6 681248.4 1054.2 330 -45 167.64 VM RC
81 LVRC6007 3141940.2 681168.3 1111.8 0 -90 144.78 VM RC
82 LVRC6107 3142146.6 681309.1 1016.2 150 -45 76.2 VM RC

83 LVRC6207 3142088.9 681234.3 1068.7 150 -50 166.12 VM RC
84 LVRC6307 3142068.5 681159.9 1091.4 150 -45 166.12 VM RC
85 LVRC6407 3142063.7 681116.9 1087.2 0 -90 121.92 VM RC
86 LVRC6507 3142117.2 681228.1 1051.4 150 -50 150.88 VM RC
87 LVRC6607 3142139.8 681166.5 1050.9 0 -90 91.44 VM RC
88 LVRC6707 3142113.4 681109.4 1057 0 -90 91.44 VM RC
89 LVRC6807 3142097.5 681127.9 1068.1 150 -45 160.02 VM RC
90 LVRC6907 3141986.8 681073.3 1123.1 0 -90 120.4 VM RC
91 LVRC7007 3142030 681108.1 1106.2 150 -45 121.92 VM RC
92 LVRC7107 3141858.7 680829.7 1173.5 0 -90 91.44 VM RC

93 LVRC7207 3141880.8 680932.7 1152.1 0 -90 77.72 VM RC
94 LVRC7307 3141939.2 681048.3 1156.6 0 -90 76.2 VM RC
95 LVRC7407 3141904.2 681182.7 1083.7 330 -50 121.92 VM RC
CAM 067571 86
Los Verdes Project
29 February 2008
Table A-1
96 LVRC7507 3142067.2 681158.4 1091.5 200 -45 114.3 VM RC

97 C1 681236.76 3142089 1069.2 150 -50 162.4 Cominco core
98 C2 681332.64 3141964 1042.3 330 -50 130.25 Cominco core
99 C3 681255.57 3141905 1054.3 330 -45 250.8 Cominco core
100 C4 681433.63 3141936 1004.2 0 -90 150 Cominco core
101 C5 681358.07 3141808 993.7 0 -90 127.1 Cominco core
102 C6 681514.91 3142041 1049.2 0 -90 89.45 Cominco core
103 C7 681514.91 3142041 1049.2 330 -45 126.65 Cominco core
104 C8 681039.12 3141900 1144 330 -45 142.7 Cominco core
105 C9 681094.56 3141948 1146.7 0 -90 165.4 Cominco core
106 C10 681322.17 3142037 1074.8 0 -90 129.4 Cominco core
107 C11 681161.95 3142065 1093.5 150 -45 174.6 Cominco core
108 C12 681309.79 3142145 1016.3 150 -40 77 Cominco core
109 C13 681279.47 3141860 1030.9 0 -90 81.4 Cominco core
110 C14 681355.09 3141928 1021.8 0 -90 85.8 Cominco core
111 C15 681279.47 3141860 1030.9 330 -45 154.3 Cominco core
112 C17 681400.77 3141985 1028.2 0 -90 161.95 Cominco core
113 C18 681309.79 3142145 1016.3 0 -90 69 Cominco core
114 C19 681400.77 3141985 1028.2 330 -45 96.25 Cominco core
115 C20 681251.83 3141991 1086.2 0 -90 155.95 Cominco core
116 C21 681220.71 3142134 1041.9 150 -50 147.7 Cominco core
117 C22 681133.89 3142101 1066.9 150 -45 161.05 Cominco core
118 C23 681105.03 3142030 1105.9 150 -45 158.25 Cominco core
119 C24 681373.17 3142077 1038.5 0 -90 65.3 Cominco core
120 C25 681188.44 3141888 1079 330 -50 125.8 Cominco core
121 C26 681283.7 3142189 1004.1 0 -90 100.25 Cominco core
122 C28 680907.98 3141917 1190.9 0 -90 138.45 Cominco core
123 C29 681198.96 3142173 1026.7 150 -50 187.5 Cominco core
124 C30 681079.17 3142072 1072.8 150 -45 200.9 Cominco core
125 DPC31 681291.99 3142013 1088.8 0 -90 150.1 Cominco core
126 C32 681264.05 3142302 961.1 0 -90 92.75 Cominco core

127 C33 681001.74 3141437 1065 240 -70 174.35 Cominco core
128 DPC35 681290.64 3142065 1070.8 0 -90 150 Cominco core
129 DPC36 681246.43 3142089 1067.9 0 -90 182.4 Cominco core
130 DPC37 681292.51 3141964 1060.7 0 -90 115.05 Cominco core

131 DPC38 681335.27 3141991 1057.8 0 -90 99.95 Cominco core
132 DPC39 681289.91 3142115 1040.7 0 -90 103.5 Cominco core
133 DPC40 681244.64 3142137 1036.7 0 -90 163.85 Cominco core
134 DPC41 681204.64 3142062 1092.9 0 -90 237.05 Cominco core
135 DPC42 681205.55 3142012 1124.8 0 -90 184.6 Cominco core
136 DPC43 681205.95 3141962 1109.7 0 -90 168 Cominco core
137 DPC44 681249.47 3141938 1067.5 0 -90 159.35 Cominco core
138 DPC45 681246.43 3142035 1110 0 -90 224.85 Cominco core
139 DPC46 681205.09 3141910 1083.5 0 -90 119.75 Cominco core
140 DPC47 681163.61 3141935 1115.9 0 -90 197.15 Cominco core

141 DPC48 681334.56 3142089 1047 0 -90 75.3 Cominco core
142 DPC49 681120.51 3141959 1149.7 0 -90 215.9 Cominco core
143 DPC50 681165.55 3142033 1120.5 0 -90 180.05 Cominco core
CAM 067571 87
Los Verdes Project
29 February 2008
Table A-1
144 DPC51 681120.82 3142010 1124.2 0 -90 189.85 Cominco core

145 DPC52 681162.07 3141984 1147.4 0 -90 192 Cominco core
146 DPC53 681204.84 3142109 1059.8 0 -90 175.95 Cominco core
147 DPC54 681162.38 3142086 1081.9 0 -90 193.4 Cominco core
148 DPC55 681119.4 3142061 1087.9 0 -90 151.4 Cominco core
149 DPC56 681119.11 3141909 1120.7 0 -90 157.8 Cominco core
150 DPC57 681285.18 3142165 1018.7 0 -90 90.9 Cominco core
151 DPC58 681295.31 3141921 1036.3 0 -90 124.2 Cominco core
152 DPC59 680971.9 3141965 -999.9 -99 -99 x Cominco core
153 DPC60 681075.44 3141985 1120 0 -90 201.3 Cominco core
154 DPC61 681422.47 3142091 1008.1 0 -90 118.05 Cominco core
155 DPC62 681163.2 3142137 1050 0 -90 90.2 Cominco core
157 DPC64 681423.9 3142038 1052.6 0 -90 165.15 Cominco core
158 DPC65 681480.83 3142060 1057.7 0 -90 120.5 Cominco core
159 DPC66 681464.13 3142118 1034.2 0 -90 171.1 Cominco core
160 DPC67 681416.83 3142140 1011.5 0 -90 116.2 Cominco core
161 DPC68 681377.43 3142117 1034.5 0 -90 113 Cominco core
162 DPC69 681165.28 3141886 1083.5 0 -90 99.35 Cominco core
171 DPC78 681077.49 3141901 1131.3 0 -90 51.5 Cominco core
172 DPC79 681116.73 3142113 1052.9 0 -90 56.95 Cominco core

176 DCC1 681481.73 3141560 -999.9 -99 -99 x Cominco core outside
177 DCC2 681390.23 3141540 -999.9 -99 -99 x Cominco core outside
178 DFV-1 681241.02 3142403 -999.9 -99 -99 x Cominco core outside
182 DPC61 681422.47 3142091 1008.1 0 -90 118.05 Cominco core
183 DPC64 681423.9 3142038 1052.6 0 -90 165.15 Cominco core
184 DPC65 681480.83 3142060 1057.7 0 -90 120.5 Cominco core
185 DPC66 681464.13 3142118 1034.2 0 -90 171.1 Cominco core
186 DPC67 681416.83 3142140 1011.5 0 -90 116.2 Cominco core
187 DPC68 681377.43 3142117 1034.5 0 -90 113 Cominco core
188 DPC58 681295.31 3141921 1036.3 0 -90 124.2 Cominco core

189 DPC69 681165.28 3141886 1083.5 0 -90 99.35 Cominco core
190 DPC78 681077.49 3141901 1131.3 0 -90 51.5 Cominco core
191 DPC79 681116.73 3142113 1052.9 0 -90 56.95 Cominco core
CAM 067571 88
Los Verdes Project
29 February 2008
Table A-1
192 DPC62 681163.2 3142137 1050 0 -90 90.2 Cominco core

193 DPC60 681075.44 3141985 1120 0 -90 201.3 Cominco core
percussio
194 PH32 681319.02 3142038 1077 0 -90 89.92 Cominco
n
percussio
195 PH30 681105.73 3142026 1113 0 -90 51.85 Cominco
n
percussio
196 PH20 681218.31 3142128 1050 0 -90 91.5 Cominco
n
percussio
197 PH21 681417.51 3142089 1008.1 0 -90 91.5 Cominco
n
percussio
198 PH13 681186.77 3142176 1031 0 -90 91.5 Cominco
n
percussio
199 PH33 681056.71 3142112 1053 0 -90 91.5 Cominco
n
percussio
200 PH31A 681152.08 3141983 1157 0 -90 82.35 Cominco
n
percussio
201 PH19 681236.91 3142082 1078 0 -90 91.5 Cominco
n
CAM 067571 89
Los Verdes Project
29 February 2008
Table A-2
Summary Results of Cominco Drilling
Diamond Meters T. Meters
Incl. Bgr. Rec-% From To %Cu %Mo %Wo3
No Depth Length
C-1 -500 S30E 162.4 95 6.4 56.45 50.05 0.049 0.119 0.04
C-1 56.45 157.05 100.6 0.994 0.278 0.13
C-1 157.05 162.4 5.35 0.101 0.016 0.03
C-2 -500 N30W 130.25 95 13.8 18.4 4.6 0.078 0.089 0.17
C-2 18.4 125.85 107.45 1.26 0.146 0.19
C-2 125.85 130.25 4.4 <.01 <.001 0.18
C-3 -45° N30W 250.8 95 10.5 22.45 11.95 0.275 0.035 0.04
C-3 22.45 84.2 61.75 1.169 0.201 0.55
C-3 84.2 108.3 24.1 0.177 0.053 0.06
C-3 108.3 123.25 14.95 0.48 0.076 0.11
C-3 123.25 250.8 127.55 0.053 0.003 0.02
C-4 -90° Vert 150 95 0 150 150 <.1 <.01
C-5 -90° Vert 127.1 97 0 127.1 127.1 <.1 <.01
C-6 -90° Vert 89.45 92 0 89.45 89.45 <.1 <.01
C-7 -90° N30W 126.65 90 0 126.65 126.65 <.1 <.01 <.01
C-8 -45° N30W 142.7 75 1.9 12.2 10.3 <.02 0.077 0.14
12.2 36.6 24.4 0.18 <.01 0.07
36.6 42.7 6.1 0.63 <.01 0.14
42.7 142.7 100 <.05 <.01
C-9 -90 Vert. 165.4 73 0 42.6 42.6 0.01 0.029 0.14
42.6 14.45 14.45 0.017 0.16 0.32
57.05 10.8 10.8 50% loss .08/ 8.05m
67.85 15.7 15.7 0.348 0.011 0.07
83.55 81.85 81.85 <.10 <.01 0.017
C-10 -90 Vert. 129.4 95 1.5 20 18.5 <.10 0.06 0.06

20 80 60 1.3 0.61 0.07
80 100.1 20.1 0.3 0.05 0.06
100.1 129.4 29.3 <.10 <.01 <.01
C-11 45° S30E 174.6 89 0 62.6 62.6 <.10 <.03 0.06
62.6 82.5 19.9 1.18 0.03 0.06
103.4 103.4 20.9 <.10 0.071 0.05
165.65 165.65 62.25 0.962 0.208 0.42
175.6 175.6 8.95 <0.1 0.058 0.02
C-12 -40° S30E 77 83 4 16.1 12.1 0.062 0.12 0.1
16.1 40.9 24.8 0.234 0.144 0.04
40.9 62 21 <.1 0.128 <.01
62 77 15 <.1 <.01
CAM 067571 90
Los Verdes Project
29 February 2008
Table A-2
No Depth Length
C-13 -90° Vert. 81.4 87 2.2 81.4 79.2 <.1 <.01
C-14 -90° Vert. 85.8 87 3.7 18.1 14.4 0.29 .05/ 4.5 m
85.8 67.7 <.1
C-15 -45˚ N30W 154.3 6.2
C-16 -50° N30W 89.6 7.65 16.7 9.05 0.39
16.7 89.6 72.9 <.10 <.01
C-17 -90° Vert 169.95
C-18 -90° Vert 69 10.15 19.65 9.5 0.024 0.083
19.65 40.85 21.2 0.24 0.172
40.85 69 28.15 <.10 <.10
C-19 -45° N30W 96.25 10.25 96.25 86 <.10 <.01
C-20 -90° Vert 155.95 11.85
C-21 -50° S30E 147.7 8.8 23.2 14.4 0.02 0.078 0.05
23.2 35.95 12.75 0.03 0.217 0.055
35.95 44.4 8.45 0.45 0.2 0.07
44.4 86.7 42.3 0.48 0.077 0.03
86.7 98.4 11.7 0.14 0.049 0.02
98.4 115.1 16.7 0.29 0.241 0.02
115.1 123.6 8.5 0.1 0.006 0.01
123.6 142.8 19.2 0.64 0.453 0.045
142.8 147.7 4.9 0.1 0.009 <.01
C-22 -45° S30E 161.05 7.5 10.55 3.05 0.022 0.097 0.03
10.55 33.65 23.1 0.02 0.243 0.06

33.65 46.6 12.95 0.08 0.118 0.05
46.6 56.6 10 0.03 0.287 0.05
56.6 78.9 22.3 1.01 0.2 0.275
78.9 125.4 46.5 0.23 0.02 0.07

125.4 133.85 8.45 0.8 0.36 0.13
133.85 148 14.15 0.5 0.025 0.04
148 161.05 13.05 0.09 0.006 0.02
C-23 -45° S30E 158.25 1.7 30.7 29 0.17 0.024 0.2
30.7 65.3 34.6 0.06 0.362 0.37
65.3 75.05 9.75 0.33 0.018 0.07
75.05 91.5 16.45 0.89 0.112 0.17
91.5 117.45 25.95 0.24 0.022 0.07
117.45 147.1 29.65 0.88 0.103 0.29
147.1 158.25 11.15 0.3 0.06 0.03
C-24 -90 Vert 65.3 3.65 65.3 61.65 <.1 <.1 0.01
C-25 -50 N30˚ W 125.8 95 1.7 51.5 49.8 0.206 0.012 0.06
CAM 067571 91
Los Verdes Project
29 February 2008
Table A-2
No Depth Length
51.5 60.25 8.25 0.97 0.121 0.48
60.25 72.4 12.15 0.316 0.026 0.14
72.4 79.9 7.5 1.06 0.184 0.19
79.9 88.55 8.65 0.1 0.012 0.11
88.55 99.6 11.05 0.69 0.079 0.12
99.6 125.8 26.2 0.103 0.007 0.03

No-
C-26 -90 Vert 100.25 90 0 0.8 0.8 No-Recovery No-Recovery
Recovery
0.8 22.85 22.05 0.108 0.006 0.01
22.85 54.9 32.05 0.1 <.01 0.01
54.9 68.6 13.7 0.11 0.048 0.03
68.6 100.25 11.65 0.1 <.01 0.01

No-
C-27 -90 Vert 77.05 90 0 3.4 23.35 No-Recovery No-Recovery
Recovery
3.4 10.95 5.5 0.53 0.054 <.01
10.95 32.2 7.2 0.074 0.42 0.01
32.2 40.35 12.05 <.10 <.01 0.01
40.35 55.1 28.1 0.026 0.31 0.07
55.1 69.55 29.8 <.10 <.01 0.01
69.55 77.05 32.45 0.033 0.026 0.01
C-28 -90 138.45 75 0 23.35 23.35 1 0.039 0.52

No-
0 23.35 28.85 28.85 No-Recovery No-Recovery
Recovery
65 28.85 36.05 36.05 <.1 0.035 0.36
93.7 36.05 48.1 48.1 <.1 0.018 0.057
97.9 48.1 76.2 76.2 <.1 0.054 0.2
96 76.2 106 106 0.25 0.02 0.07
92.6 106 138.45 138.45 <.1 <.01 –

No-
C-29 -45 S30˚E 187.5 0 3.65 3.65 No-Recovery No-Recovery
Recovery
87 3.65 34.65 31 0.26 <.1 0.032
86.6 34.65 94 59.35 <.1 <.01 0.01
96.6 94 105.15 11.15 <.1 <.01 0.02
91.7 105.15 141.65 36.5 <.1 <.01 0.01
98 141.65 153.45 11.8 <.1 0.12 0.027
96.5 153.45 187.5 34.05 <.1 <.01 0.01

No-
C-30 -45 S30˚E 200.9 0 1.7 1.7 No-Recovery No-Recovery
Recovery
83.5 1.7 63.8 62.1 <.1 <.01 0.016
95.9 63.8 73 9.2 0.17 0.021 0.022
90.4 73 103.75 30.75 <.1 <.01 0.015
87.2 103.75 114.55 10.8 0.13 0.016 0.18
92 114.55 155.35 40.8 <.1 <.01 0.033
89.8 155.35 200.9 45.55 <.1 <.01
C-32 Vert. 92.75 0 0 1.9 1.9 – – –
1.9 30.75 28.85 0.293 0.057
30.75 47.15 16.4 0.533 0.022

(mixed zone
mainly with 47.15 68.25 21.1 1.385 0.01
Cu)
68.25 92.75 24.5 <.1 <.1
C-33 –70˚ S60W 174.35 0 4.2 4.2 – – –
4.2 58 53.8 <.1 <.01
CAM 067571 92
Los Verdes Project
29 February 2008
Table A-2
No Depth Length
58 103.05 45.05 <.1 <.013
103.05 111.85 8.8 0.363 0.01
111.85 129.55 17.7 <.1 0.011
129.55 143.8 14.25 0.167 <.01
143.8 174.35 30.55 <.1 <.01
C-34 –45˚ S 187.65 0 146.7 146.7 <.1 <.01
146.7 155.55 8.85 0.72 0.02
155.55 187.65 32.1 <.1 <.01
CAM 067571 93
Los Verdes Project
29 February 2008
Table A-2 (Continued)
Cominco Drilling 1971-1979
Meters T. Meters
Hole No Incl. Bgr. Rec-% From To %Cu %Mo Ore Type
Depth Length
DPC-31 -90˚ VERT 150.1 86.4 3.05 32.8 29.75 <0.1 0.096 0x
32.8 46.75 13.95 0.154 0.058 SP Y SS
46.75 55.3 8.55 1.68 0.38 SP Y SS
55.3 73.75 18.45 0.475 0.04 SP Y SS
73.75 85.55 11.8 1.54 0.037 SP Y SS
85.55 97 11.45 0.26 0.025 SP Y SS
97 112.2 15.2 0.84 0.95 SP
112.2 143.35 31.15 0.98 0.11 SP
143.35 150.1 6.75 <.1 0.013 SP
DPC-35 -90˚ Vert. 150 78.1 6.1 42.3 36.2 <.10 0.08 0x
42.3 53.45 11.15 0.4 0.018 0x
53.45 73.1 19.65 1 0.18 SP Y SS
73.1 86.25 13.15 0.44 0.06 SP Y SS

86.25 100.1 13.85 0.77 0.12 SP
100.1 113.75 13.65 0.15 0.026 SP
113.75 128.2 14.45 0.52 0.37 SP
128.2 150 21.8 <.10 <.01 SP
DPC-36 -90˚ Vert. 182.4 82.6 3.05 43.05 40 0.07 0.08 0x
43.05 75.2 32.15 0.47 0.04 SP Y SS
75.2 88.3 13.1 0.27 0.38 SP Y SS
88.3 113.8 25.5 0.12 0.01 SP
113.8 125.7 11.9 0.22 0.26 SP
125.7 155.4 29.7 <.1 0.01 SP
155.4 168.95 13.55 <.1 0.14 SP
168.95 182.4 13.45 <.1 <.01 SP
DPC-37 –90˚ Vert. 115.05 79.9 6 10.75 4.75 0.21 0.04 0x
10.75 22.1 11.35 0.71 <.01 0x
22.1 40.35 18.25 0.11 <.01 SP Y SS
40.35 51.6 11.25 0.67 0.045 SP Y SS
51.6 58 6.4 <.10 <.01 SP
58 86.65 28.65 1.04 0.17 SP

86.65 115.05 28.4 <.10 <.01 SP
DPC-38 -90˚ Vert. 99.95 52 6 17.1 11.1 0.1 0.113 0x

17.1 21.5 4.4 No recovery No recovery No recovery
21.5 30.4 8.9 0.17 0.078 0x
30.4 70.6 40.2 1.52 0.087 SP Y SS
70.6 99.95 29.35 0.1 0.01 SP
DPC-39 -90˚ vert. 103.5 71.7 9.7 30.15 20.45 0.034 0.11 0x
30.15 41.45 11.3 0.13 0.015 SP Y SS
41.45 48.65 7.2 0.41 0.186 SP Y SS
48.65 58.35 9.7 0.11 0.025 SP
58.35 87.85 29.5 0.25 0.39 SP
87.85 96.7 8.85 0.12 0.12 SP
96.7 103.5 6.8 <.1 <.01 SP
DPC-40 -90˚ Vert. 163.85 78.1 6 27.65 21.65 0.1 0.27 0x
27.65 38.6 10.95 0.52 0.16 SP Y SS
38.6 62.15 23.55 <.10 0.09 SP
CAM 067571 94
Los Verdes Project
29 February 2008
Meters T. Meters
Depth Length
62.15 107.95 45.8 <.10 <.01 SP
107.95 137.4 29.45 <.10 0.15 SP
137.4 163.85 26.45 <.10 <.01 SP
DPC-41 -90˚ Vert. 237.05 73.9 2.4 40.05 37.65 <.10 0.06 0x
40.05 85.1 45.05 0.1 0.23 0x
85.1 110.4 25.3 0.65 0.16 SP Y SS
110.4 237.05 126.65 <.10 <.01 SP Y SS
DPC-42 -90˚ Vert. 184.6 79.4 0 38.95 38.95 0.1 0.04 0x
38.95 61.8 22.85 0.16 0.03 0x
61.8 88.6 6.4 0.4 0.03 SP y SS
68.2 88.6 20.4 0.93 0.04 SP y SS
88.6 95.2 6.6 0.39 0.06 SP y SS
95.2 106.4 11.2 0.26 0.12 0x y SP y S
106.4 132.1 25.7 2.24 0.155 SS
132.1 167.3 35.2 2.85 0.63 SP y SS
167.3 184.6 17.3 0.1 0.01 SP
DPC-43 -90˚ Vert 168 0 6.25 6.25 0.1 0.1 0x
7.75 16.45 8.7 0.1 0.069 0x
16.45 25.2 8.75 0.9 0.01 0x
25.2 40.05 14.85 0.1 0.04 0x
40.05 51.3 11.25 1.05 0.02 0x-SS
51.3 74.65 23.35 0.1 0.022 0x-SS
74.65 109.3 34.65 2.275 0.095 SS- y SP
109.3 137.95 28.65 0.85 0.29 SS- y SP
137.95 161.2 23.25 0.22 0.017 SP
161.2 168 6.8 <.10 <.01 SP
DPC-44 -90˚ Vert. 159.35 90.3 0 9.8 9.8 0.1 0.01 0x
9.8 32.4 22.6 0.12 0.01 SP Y SS
32.4 69.35 36.95 1.08 0.39 SP Y SS

69.35 87.2 17.85 0.2 0.04 SP
87.2 159.35 72.15 <.10 <.01 SP
DPC-45 -90˚ Vert. 224.85 68.9 1.95 35.7 33.75 <.10 0.059 0x

38.75 61.5 22.75 0.1 0.09 0x
63.05 67.8 4.75 <.10 0.055 0x
67.8 82.1 14.3 0.21 0.05 0x y SS
82.1 89.9 7.8 0.57 0.03 SS- y SP
89.9 94.65 4.75 0.17 0.01 SS- y SP
94.65 129 34.35 1.11 0.176 SS
129 144.5 15.5 0.19 0.036 SP
144.5 165.45 20.95 1.13 0.226 SP
165.45 203.85 38.4 <.10 <.01 SP
203.85 212.1 8.25 0.14 0.14 SP
212.1 224.85 12.75 <.10 0.019 SP
DPC-46 -90˚ vert. 119.75 85.7 5 28.65 23.65 0.1 0.09 0x
CAM 067571 95
Los Verdes Project
29 February 2008
Meters T. Meters
Depth Length
28.65 50.7 22.05 0.458 0.01 0x y SP
50.7 58.05 7.35 1.25 0.2 SP
58.05 119.75 61.7 0.1 0.01 SP
DPC-47 -90˚ Vert. 119.75 85.7 6.2 51.3 45.1 0.1 0.119 0x
51.3 60.8 9.5 0.12 0.104 0x y SS
60.8 68.8 8 0.495 0.145 0x y SS
68.8 99.3 30.5 0.98 0.179 0x y SP
99.3 120.4 21.1 0.1 0.01 SP
120.4 125.65 5.25 0.69 0.02 0x-SP
125.65 136.35 11 0.1 0.01 SP-0x
136.35 142.7 6.35 1.06 0.166 SP-0x
142.7 197.15 54.45 0.1 0.01 SP
DPC-48 -90˚ Vert. 75.3 78 6.5 21.75 15.25 0.1 0.127 0x
21.75 47.65 25.9 0.51 0.23 SP Y SS
47.65 61.4 13.75 0.1 0.135 SP
61.4 75.3 13.9 0.1 0.01 SP
DPC-49 -90˚ vert. 215.9 76.2 0 3.9 3.9 <0.010 0.01 0x
3.9 17.65 13.75 <.10 0.053 0x
17.65 27.3 9.65 <.10 <.01 0x
27.3 47.15 19.85 <.10 0.016 0x
47.15 59.3 12.15 <.10 0.125 0x
59.3 74.85 15.55 0.1 0.014 0x
74.85 93 18.15 0.1 0.307 0x
93 98.9 5.9 0.91 0.03 SP Y SS
98.9 119.2 20.3 0.29 0.04 SP
119.2 128.4 9.2 0.5 0.13 SP
128.4 136.55 8.15 0.3 <.01 SP
136.55 215.9 79.35 <.10 <.01 SP
DPC-50 -90˚ Vert 180.05 70.4 0 83.85 83.85 0.1 0.046 Ox-SP y SS
83.85 109.45 25.6 1.29 0.12 Ox-SP-SS
109.45 112.55 3.1 0.19 0.03 SP Y SS

112.55 116.95 4.4 0.53 0.12 SP-SS
119.15 138.1 18.95 0.2 <.01 SS y SP
138.1 180.05 41.95 0.1 <.01 SP

DPC-51 -90˚ Vert 189.85 85.7 5.6 42.25 36.65 0.1 0.04 0x
42.25 57.74 15.49 <.10 0.23 0x-SS-SP
57.74 99.3 41.56 <.10 0.013 SP
99.3 139.65 40.35 <.10 <.01 SP
139.65 189.85 50.2 <.1 <.01 SP
DPC-52 -90˚ Vert. 192 83.6 3.6 68.25 64.65 <.10 0.04 0x-SS-SP
71.3 113 41.7 0.1 0.053 0x-SS-SP
113 132.7 19.7 1.26 0.1 SS y SP
132.7 143.1 10.4 0.51 0.05 SS y SP
143.1 160.3 17.2 0.3 0.03 SS y SP
160.3 192 31.7 0.1 0.01 SP
DPC-53 -90˚ Vert. 175.95 82.4 6.7 42.75 36.05 <.1 0.2 0x
CAM 067571 96
Los Verdes Project
29 February 2008
Meters T. Meters
Depth Length
42.75 45.1 2.35 0.15 0.091 0x-SP-SS
45.1 51.35 6.25 0.24 <01 SP-SS
52.35 63.05 11.7 <.10 <.01 SP
63.05 77.5 14.45 0.1 0.02 SP
77.5 175.95 98.45 <.10 0.01 SP
DPC-54 -90˚ vert. 193.4 74 3.05 46.95 43.9 <.01 0.086 0x
46.95 62.45 15.5 0.45 0.1 0x-SP-SS
62.45 69.7 7.25 0.67 0.1 SP-SS
69.7 77.25 7.55 <.10 <.01 SP
*77.25 90.1 12.85 0.12 0.03 SP
DPC-55 -90˚ vert. 151.4 83.1 4.1 28.15 24.05 <.1 0.08 0x
28.15 38.1 9.95 0.17 0.015 0x-SP-SS
38.1 61.3 23.2 <.10 0.016 SP
61.3 151.4 90.1 <.10 <.01 SP
DPC-56 -90˚ vert. 157.8 88.3 0 10.25 10.25 <.10 0.033 0X
10.25 23.2 13.05 0.14 0.024 0X
23.2 30.75 7.45 0.21 -0.01 0X
30.75 38.5 7.75 0.15 <.01 0X-SP
38.5 57.05 18.55 <.10 <.01 0X-SP
57.05 72.6 15.55 0.337 0.015 0x-SP-SS
72.6 157.8 85.2 <.10 <.01 SP
DPC-57 -90˚ vert. 90.9 92 0 5.3 5.3 No recovery No recovery No recovery
5.3 6.6 1.3 0.05 0.14 0x
8.8 20.65 11.85 <.1 0.03
20.65 26.35 5.7 0.32 0.01
26.35 65.9 39.55 <.1 <.01
65.9 72.3 6.4 <.1 0.01
72.3 90.9 18.6 <.1 <.01
CAM 067571 97
Los Verdes Project
29 February 2008
Mo1 Indicates Total Mo (sulfide plus acid-soluble). * Indicates holes drilled in Tungsten Zone.
Intervals where no sample was collected are included as intercepts of zero grade. No high values were
cut. Not all intervals were assayed for W@ and Ag.
Table A-3
VM – MAS 2007 drilling results. (includes some 2006 hole results)
Total Intercept, True
hole no. Incl. From, m To, m Mo1 Cu W Ag
depth m m
LVDD0207 vertical 76.05 16.5 73.4 56.9 56.9 0.07 0.4
LVDD0307 vertical 173.8 15 117 102 102 0.06 1.02
LVDD0507 -45 172 25.5 127.5 102 72.11 0.08 0.63
LVDD1407 vertical 101.3 37.5 101.3 63.8 63.8 0.01 0.05
LVDD14A07 -60 89.4 28.5 64.5 36 31.18 0.22 0.28
including 42 64.5 22.5 19.48 0.29 0.28
LVDD1907 vertical 95.8 28.5 69 40.5 40.5 0.11 1.22 0.18 4
including 31.5 57 25.5 25.5 0.09 1.49 0.11 4.2
LVDD19A07 -50 120.9 37.5 40.5 3 2.3 0.15 2.98
LVDDC23 -45 168.9 51 160.5 109.5 77.42 0.12 0.52 0.11 11.1
including 51 72 21 14.85 0.43 0.23 0.09 28.1
LVDD2907I -45 139.6 106.5 139.6 33.1 23.4 0.05 0.05 0.06 26.6
LVDD3507 vertical 100.5 25.5 61.5 36 36 0.28 0.38
LVDD3607 -50 105.6 25.5 43.5 18 13.79 0.12 0.68 0.08 4.6
LVDDDPC5
vertical 169.8 60 66 6 6 0.19 0.05
3
LVDD7107* vertical 70.1 39 60 21 21 nil 0.1
LVDD7207* vertical 88.2 0 13.5 13.5 13.5 nil nil 0.1
LVDD7307* vertical 70.3 0 57 57 57 nil nil 0.25
LVRC0106 vertical 172.21 24.38 92.96 68.58 68.58 0.27 1.22
including 24.38 74.68 50.3 50.3 0.33 1.51
LVRC0206 vertical 160.02 16.76 73.15 56.39 56.39 0.07 0.46
LVRC0306 vertical 153.92 33.53 137.16 103.63 103.63 0.11 1.29
LVRC0506 -45 173.74 27.43 129.54 102.11 72.19 0.18 0.85
LVRC1406 vertical 182.88 38.1 102.11 64.01 64.01 0.01 0.06
LVRC1906 vertical 102.11 28.96 70.1 41.14 41.14 0.07 1.43 0.35 6.5
including 32 57.91 25.91 25.91 0.07 2.02 0.34 7.9
LVRC2907 -90 144.78 0 51.82 51.82 51.82 * 0.16
including 0 10.67 10.67 10.67 * 0.29
LVRC3506 vertical 91.44 25.91 60.96 35.05 35.05 0.22 0.37
LVRC3606 -50 91.44 25.91 42.67 16.76 14.51 0.15 0.47 0.05 1.7
to east, millsite
LVRC4306
condemn.
to east, millsite
LVRC4406
condemn.
exploration, 800
LVRC4506
mE
LVRC4607 vertical 121.92 16.76 88.39 71.63 -- 0.25 1.45 0.06 10.1
including 21.34 57.91 36.57 -- 0.39 1.65 0.03 10.6
LVRC4707 vertical 121.92 12.19 88.39 76.2 -- 0.45 0.87 0.04 3.5
including 12.19 51.81 39.62 -- 0.73 0.8 0.02 4.1
LVRC4807 vertical 121.92 22.86 89.92 67.06 -- 0.22 1.52 0.11 13.1
CAM 067571 98
Los Verdes Project
29 February 2008
Table A-3
VM – MAS 2007 drilling results. (includes some 2006 hole results)
Total Intercept, True
hole no. Incl. From, m To, m Mo1 Cu W Ag
depth m m
including 28.96 64.01 35.05 -- 0.33 1.7 0.07 7.6
LVRC4907 vertical 121.92 21.34 79.25 57.91 -- 0.28 1.14 0.08 7.3
LVRC5007 vertical 121.92 35.05 76.2 41.15 -- 0.56 1.53 0.07 5.3
including 39.62 68.58 28.96 -- 0.74 1.83 0.08 6.4
LVRC5107 vertical 121.92 24.38 70.1 45.72 -- 0.21 0.71 0.07 5.5
including 41.15 68.58 27.43 -- 0.25 1.09 0.06 5.2
LVRC5407 -55 137.16 22.86 134.11 111.25 91.11 0.14 0.96 0.21 5.1
including 39.62 118.87 79.25 64.9 0.18 1.2 0.26 6.8
and 67.06 118.87 51.81 42.43 0.25 1.55 0.38 9.5
LVRC5607 -55 121.92 71.63 121.92 50.29 41.19 0.09 nil 0.07 22.4
including 100.58 121.92 21.34 17.48 0.16 nil 0.1 23.9
LVRC5807 -50 115.82 18.29 115.82 97.53 74.7 0.1 1.19 0.18 6.2
including 18.29 96.01 77.72 59.53 0.09 1.37 0.15 7.3
LVRC5907 -45 167.64 21.34 123.44 102.1 72.18 0.26 1.09 0.34 7.1
including 24.38 88.39 64.01 45.24 0.29 1.41 0.42 8.8
LVRC6007 vertical 144.78 54.86 121.92 67.06 67.06 0.1 0.65 0.16 7
including 70.1 121.92 51.82 51.82 0.1 0.83 0.16 7.4
LVRC6107 -45 76.2 22.86 51.82 28.96 20.47 0.12 0.3 nil nil
LVRC6207 -50 166.12 53.34 158.5 105.16 80.55 0.15 0.83 0.09 3.3
including 74.68 158.5 83.82 64.21 0.17 0.95 0.11 3.9
LVRC6307 -45 166.12 60.96 166.12 105.16 74.35 0.27 1.56 0.16 9.1
including 103.63 166.12 62.49 44.18 0.41 1.63 0.25 8
including 123.44 146.3 22.86 16.16 0.78 2.08 0.25 9.6
LVRC6507 -50 150.88 39.62 150.88 111.26 85.22 0.2 0.46 0.08 3.3
including 85.34 147.83 62.49 47.87 0.27 0.57 0.1 4.1
LVRC6807 -50 160.02 38.1 64.01 25.91 19.85 0.04 0.4 0.09 2.5
LVRC6907 -90 120.4 4.57 27.43 22.86 22.86 * 0.17
including 7.62 21.34 13.72 13.72 * 0.2
LVRC7007 -45 121.92 21.34 121.92 100.58 71.11 0.11 0.23 0.15 10.9
including 36.58 70.1 33.52 23.7 0.27 0.09 0.18 21.9
LVRC7107 -90 91.44 1.52 30.48 28.96 28.96 * 0.12
LVRC7207 -90 77.72 1.52 13.72 12.2 12.2 * 0.12
LVRC7307 -90 76.2 1.52 54.86 53.34 53.34 * 0.29
including 19.81 53.34 33.53 33.53 * 0.34
LVRC7407 -50 121.92 35.05 121.92 86.87 66.54 0.06 0.54 0.17 3.6
including 36.58 89.92 53.34 40.86 0.07 0.69 0.2 4
LVRC7507 -45 114.3 35.05 114.3 79.25 56.03 0.06 0.23 0.07 5
LVRC7107 vertical 91.44 39.62 60.96 21.34 21.34 nil 0.08
LVRC7207 vertical 77.72 1.52 13.72 12.2 12.2 nil nil 0.12
LVRC7307 vertical 76.2 1.52 56.39 54.87 54.87 nil nil 0.28
CAM 067571 99
Los Verdes Project
29 February 2008

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Professionals in resources, mining, processing, construction and the environment www.cam-llc.

Fred Barnard, PhD.

200 Union Boulevard, Suite 430

1.0 SUMMARY ............................................................................................................. 1

8.0 DEPOSIT TYPES .................................................................................................... 30

17.1.3 SAM Contact Profiles ................................................................... 63

CAM 067571 iii

4-1 Molibdeno Los Verdes Alamos Concessions - Los Verdes ..................................... 15

Item 1. Title Page ........................................................................................................... Title Page

Item 23. References ....................................................................................................... Sec 22.0

1.2 Property Description and Ownership

1.3 Location, Infrastructure, and Physiography

1.4 Geology and Mineralization

Los Verdes contains molybdenum-copper-(tungsten) mineralization in stockworked granodiorite and in

Vertical zonation in the deposit, as confirmed by MAS drilling, is as follows:

1.5 Exploration and Data Compilation

1.5.2 Data Compilation and Verification

1.6 Metallurgical Data

1.7 Resource Estimation

1.7.1 Resource Tabulation

1.8 Conclusions and Recommendations

1. Mineralization at Los Verdes is hosted in a granodiorite cut by veins, stockworks, and

2.1 Sponsorship and Use

2.2 Qualified Persons

4.2 Mineral Properties

4.3 Environmental Issues

5.1 Access, Physiography, and Climate

5.2 Local Resources and Infrastructure

Period Owner or Lessee Work Undertaken Location

6.1 Prior Exploration, Development, and Production

6.1.1 Cominco exploration

6.1.2 1996-2005 exploration

6.1.3 Virgin Metals – MAS exploration

6.2 Historical Mineral Resources

7.1 Regional Geology

Legend and Notes:

7.2 Local Geology

7.3 Property Geology

7.3.1 Granitic intrusives

Los Verdes contains molybdenum-copper-(tungsten) mineralization in stockworks and breccias related to

9.1 Style of mineralization

The mineralization at Los Verdes is of magmatic-hydrothermal origin, consisting originally of sulfide

9.1.1 Hypogene mineralization (Sulfide Zone)

9.1.2 Secondarily-enriched mineralization (Mixed Zone)

9.1.3 Oxide mineralization (Oxide Zone)

10.2 Exploration Work

11.1 Summary of drilling

11.2 Cominco-Peñoles Drilling Program, 1971-1979

11.3 MAS Drilling Programs

11.3.1 2007 Reverse Circulation Drill Program

11.3.2 2007 Diamond Core Drilling Program

12.1 Cominco-Peñoles Sampling

12.2 Virgin Metals Sampling

Diamond core was sent whole for assay, as described above.

12.3 Bulk Density (Specific Gravity) of Mineralized material

12.3.1 Bulk Density Measurements

12.3.2 Analysis of Bulk Density Data

12.3.3 Discussion of Bulk Density

13.1 Cominco exploration

VM does not have written descriptions of the Cominco procedures.

13.2 Virgin Metals exploration

13.2.1 Sample Preparation

13.2.2 Sample Analysis

13.2.3 QA/QC (Quality Assurance/Quality Control)