El Puma Rapport Forages Geostat

You might also like

You are on page 1of 76

Resource Evaluation

of the Puma Property


optioned by
Rocmec Mining Inc.
Technical Report

Respectfully submitted to:


Rocmec Mining Inc.

Date: June 12Th, 2008

By: Maxime Dupéré geo.


Geostat Systems International Inc.
10 de la Seigneurie, Suite 203
Blainville, Québec, Canada, J7C 3V5
Tel: (450) 433-1050
Fax: (450) 433-1048
E-Mail: info@geostat.com
Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page ii

Table of Contents

Table of Contents .............................................................................................................................................. ii

List of tables ......................................................................................................................................................iv

List of Figures.....................................................................................................................................................v

1- Summary.........................................................................................................................................................1

2- Introduction and terms of references ........................................................................................................4


List of abbreviations ......................................................................................................................................5
3- Reliance on other Experts............................................................................................................................6

4- Property Description and Location............................................................................................................7

5- Accessibility, Climate, Local Resources, Infrastructure and Physiography ........................................11


Accessibility...................................................................................................................................................11
Climate and Vegetation ...............................................................................................................................11
Temperature..................................................................................................................................................12
Winds .............................................................................................................................................................12
Agriculture.....................................................................................................................................................12
Local Resources............................................................................................................................................13
Infrastructure ................................................................................................................................................13
Physiography.................................................................................................................................................14
6- History ..........................................................................................................................................................17

7- Geological Setting .......................................................................................................................................18


Regional Geological Setting........................................................................................................................18
Stratigraphy ...............................................................................................................................................19
Complex Basal de la Costa .............................................................................................................................................................................. 19
Gneiss .................................................................................................................................................................................................................. 20
Alkali Granites ................................................................................................................................................................................................... 20
Local Geological Setting .............................................................................................................................21
Torconta Tonalite.....................................................................................................................................21
Laderas Tonalite .......................................................................................................................................21
Formation Millo........................................................................................................................................22
8- Deposit Types..............................................................................................................................................24

9- Mineralization ..............................................................................................................................................25
Gold ...............................................................................................................................................................25
Copper ...........................................................................................................................................................26
10- Exploration ................................................................................................................................................27
Local Grid .....................................................................................................................................................27
Late 2007 Mapping, trenching and sampling ...........................................................................................27
Geostat Systems International Inc. ii
Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page iii
2008 Sampling and cartography of the Puma property..........................................................................29
2008 Land survey of the Puma property ..................................................................................................31
11- Drilling........................................................................................................................................................32

12- Sampling Method and Approach............................................................................................................35


2008 Core sampling .....................................................................................................................................35
2007 channel sampling ................................................................................................................................38
13- Sample Preparation, Analyses and Security...........................................................................................40
Field Sample preparation and security ......................................................................................................40
2008 drilling campaign.............................................................................................................................40
2007 channel sampling program ................................................................................................................40
Laboratory Sample Preparation, analysis and security............................................................................41
CIMM-Peru Lab preparation..................................................................................................................41
SGS-Lakefield Laboratory.......................................................................................................................41
14- Data Verification.......................................................................................................................................42

15- Adjacent Properties...................................................................................................................................44

16- Mineral Processing and Metallurgical Testing.......................................................................................46

17- Mineral Resource and Mineral Reserve Estimates ...............................................................................47


Definitions.....................................................................................................................................................47
Database used ...............................................................................................................................................48
Geological Interpretation and Modelling .................................................................................................49
Analysis of the gold grade distribution and capping value.....................................................................52
Resource estimation settings ......................................................................................................................53
Polygonal Resource Modeling ................................................................................................................53
Resource classification settings ..................................................................................................................55
Measured Resources.................................................................................................................................55
Indicated Resources .................................................................................................................................56
Inferred Resources ...................................................................................................................................57
Classified Resource estimates .....................................................................................................................57
18- Other Relevant Data and Information ..................................................................................................58
Thermal fragmentation Mining Method...................................................................................................58
The Burner ................................................................................................................................................58
The Fragmented Rock .............................................................................................................................58
Drift Development and Stope Layout ..................................................................................................58
Ore Extraction: Selective and Continuous..........................................................................................59
Mining Ounces not Tonnes....................................................................................................................59
Reducing Environmental Impact...............................................................................................................61
Productivity...................................................................................................................................................61
19- Interpretation and Conclusions ..............................................................................................................62

20- Recommendations ....................................................................................................................................64

21- References ..................................................................................................................................................65


Geostat Systems International Inc. iii
Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page iv
22- Date and Signature Page ..........................................................................................................................66

22- Certificate of qualification........................................................................................................................67

Appendix 1: Mining contract .........................................................................................................................68

Appendix 2: Project Data ...............................................................................................................................71

List of tables
Table 1: List of abbreviations...........................................................................................................................5
Table 2: Puma Mining concessions information and coordinates Datum: PSAD56 ............................10
Table 3: List of the mineralized intercepts of the Puma mineral deposit................................................34
Table 4: List of the adjacent properties to the Puma mining concession................................................45
Table 5: Database drill hole collar information...........................................................................................48
Table 6: Color Legend used in SectCAD .....................................................................................................50
Table 7: Puma Property, Ramal Vein Capped Resources, No cut-off applied, undiluted ....................57

Geostat Systems International Inc. iv


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page v

List of Figures
Figure 1: Location of the Puma Property area near Arequipa, Peru ..........................................................7
Figure 2: Claim map of the Puma property. ..................................................................................................9
Figure 3: Dry and mountainous near the Puma Property..........................................................................12
Figure 4: Agriculture in the Vitor Valley ......................................................................................................13
Figure 5: Regional Geological map ...............................................................................................................23
Figure 6: Ramal mineralized vein (0.50m) inside underground workings ...............................................26
Figure 7: Location of the 2007 surface channel samples. ..........................................................................28
Figure 8: Photo of an old underground artisanal working.........................................................................29
Figure 9: Map of surface sampling on the property (DATUM: PSAD56)..............................................30
Figure 10: Land Survey, Collar and sample Survey of the Puma Property Selected Area (DATUM:
PSAD56)....................................................................................................................................................33
Figure 11: Example of core in core box before sampling..........................................................................36
Figure 12: Example of core sampling ...........................................................................................................36
Figure 13: Example of samples of core and their numbers.......................................................................37
Figure 14: Example of core after sampling ..................................................................................................37
Figure 15: Example of a sample taken using a chisel and a hammer. ......................................................38
Figure 16: Example of a sample taken using a circular rock saw..............................................................39
Figure 17: Diagram of the analytical checking procedure of the samples ...............................................43
Figure 18: Adjacent properties to the Puma property................................................................................44
Figure 19: oblique view of the Ramal underground and surface geological interpretation (SectCAD)50
Figure 20: geological interpretation of the Pollo vein ................................................................................51
Figure 21: 2D view of the Ramal vein mineral deposit area in PolyCAD...............................................53
Figure 22: 2D view of the Ramal vein mineral deposit measured resources in PolyCAD ...................55
Figure 23: 2D view of the Ramal vein mineral deposit indicated resources ...........................................56
Figure 24: 2D view of the Ramal vein mineral deposit indicated resources in PolyCAD ....................56
Figure 25: 2D view of the Ramal vein mineral deposit resources (all included) in PolyCAD..............57

Geostat Systems International Inc. v


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 1

1- Summary

1. Geostat Systems International Inc. was mandated to prepare a Resource


evaluation 43-101 compliant technical report study on the Puma property on
behalf of the Client: in order to assess the resources available and the mineral
potential of the Puma property.

2. The Puma project is located 40.2 km West-Northwest (WNW) of the town of


Arequipa, in southern Peru. The property is centered on UTM/UPS coordinates
189,877E and 8,199,376N (Zone 19K, NAD 83 (Peru) on the topographic map
sheet 2538 III of the series J731. The property is easily accessible with a 4x4 pick-up
truck via a paved road from Arequipa and an access road on both flat and
mountainous relief. A small mine called El Puma Mine is present on the Puma
property. The mine is still active and extracting gold. The amount of ore extracted is
negligible.

3. The Puma Property is part of an agreement of purchase. The sampling and drilling
program are considered a key faction in the final decision to buy the mining lease.

4. The Puma property is not owned by Rocmec at the time of this report.

5. The regional resources in regards to labour force, supplies and equipment are
sufficient, the area being well served by geological and mining services and
equipment companies. The closest town of Arequipa provides the workforce for
other mines in the area. The mining activities in Peru and the region near Arequipa
are welcomed. There has been mining activities for a long time in Peru.

6. Geostat saw physical evidence of artisanal underground workings throughout the


property, believed to have been started intermittently from the 70’s. The author was
not able to access documented work done on the property.

7. The property’s geology consists of Cretaceous to Tertiary intrusive rocks, Jurassic to


Cretaceous and Tertiary sedimentary formations and late tertiary to quaternary
volcanic to pyroclastic rocks. The property is situated entirely in the Torconta
tonalite batholith. The lithology differs from site to site but the most extensive one is
composed of tonalite frequently folded but without banding. The Torconta tonalite
is intruding the metamorphic rocks of the Basal Complex, where in many areas there
is metamorphic debris included inside the intrusive mass. Also, there is presence of
sediments of the Yura Group and the Murco formation along the oriental rim.
Intrusion of the Laderas Tonalite is also visible without any direct relation with the
rocks of the Granodiorite group. (Foto No 7 of Boletin No 24, April 1970).

8. The gold mineralization on the Puma property is associated to quartz veins. The
quartz veins width varies from few centimetres to one metre. The Ramal vein was
followed on surface over 300 metres. The Principale Vein was followed on surface
over 450 metres. The Pollo vein was followed on surface over 500 metres.

Geostat Systems International Inc. 1


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 2

9. Rocmec carried out a small exploration program including outcrop sampling,


topographic survey and NQ diamond drilling. Rocmec drilled four (4) holes totalling
608.3m. They contracted Gemco S.A.C., a Peruvian drilling company based in Lima.
The drilling campaign permitted to validate at depth the presence of the Ramal, and
the Principale veins. Even though some assay results of the mineralized intercepts
got low gold content.

10. Hole RSA-30 intersected gold mineralization at 53.57 g/t over 0.70m (apparent
width)

11. The Puma property contains also good exploration targets for future gold extraction.
A total of 21 veins were sampled on surface during the 2008 surface sampling
program. These veins varied from a few meters to 570m in length, from 0.10m to
1.20m in width (apparent width) and from 0.003 g/t over 0.10m Au to 48.47 g/t Au
over 0.10m (apparent width) with an arithmetic average of 1.94 g/t Au and a
weighted average of 0.13 g/t Au. In total, 21 veins and occurrences were discovered
for a total of 165 samples covering an area of 20 km2. All of the veins remain good
exploration targets and are open on both directions and at depth in consideration to
the mining method used by Rocmec.

12. Geostat compiled and validated the information in a database. The database consists
of 4 exploration surface drill holes, 108 surface channel samples and 90 underground
channel samples.

13. There are mineral concessions surrounding the Puma property and are considered as
adjacent properties to the Puma project area within the definition of NI 43-101.
Geostat is not aware of any work being carried out on these adjacent properties.

14. To this date, there are no metallurgical tests available.

15. The classification of Mineral Resources and Mineral Reserves used in this report
relies on the definitions provided in National Instrument 43-101, which came into
force in February 1, 2001. Geostat confirms to have followed the guidelines adopted
by the Council of the Canadian Institute of Mining Metallurgy and Petroleum.

16. Considering the nature of the gold mineralization (nugget effect), the continuity of
the structure at depth, considering the mining method and the small amount of
available data, the resources were kept undiluted and no cut-off was applied at this
stage of the report. Mined-out areas are included (see Resources section).

17. Geostat used a capping value of 31.1035 g/t Au as a rule of thumb considering the
small amount of data available. Mined-out areas are included in the resources
estimation.

18. The estimated resources of the Ramal Vein mineral Deposit on the Puma Property
were done by a 3D polygonal projection as specified in Item 17.

Geostat Systems International Inc. 2


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 3

19. Puma Property’s Ramal Vein Mineral Deposit:

Classified Resources Tonnage Thickness (m) Au g/t Ounces Au


Measured* 2800 0.51 28.46 2500
Indicated 16300 0.53 29.20 15300
Total (Measured+Indicated) 19100 0.52 29.09 17800
Inferred 27900 0.56 13.63 12200
*: Mined-out areas estimated at 450 t at 28.46g/t Au, 410 oz Au are included in the Measured Resources estimate

20. Resources are limited between the surface and a vertical depth of 100 metres.
Estimates were done using a specific gravity of 2.7.

21. The Puma Property has a total of 2,500.00 ounces of gold in the measures category
and 15,300.00 ounces of gold in the indicated category for a total of 17,900.00
ounces. The Puma Property has a total of 12,200.00 ounces of gold in the inferred
category.

22. There are no reserves mentioned in this report.

23. Geostat recommends the continuation of exploration of the known veins and the
development work in the underground openings in order to upgrade to Canadian
standards.

Signed

Maxime Dupéré geo.


June 12th, 2008.

Geostat Systems International Inc. 3


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 4

2- Introduction and terms of references


Geostat Systems International Inc. was mandated to prepare a Resource evaluation 43-101
compliant technical report on the Puma property on behalf of the Client: in order to estimate the
resources available and the mineral potential of the property mentioned above.

Geostat was hired to estimate the resources and the reserves of the Puma Property, owned by
Rocmec Mining Inc. (Rocmec). The necessary data for this study was provided by Rocmec in an
electronic format and on paper. The author first visited the site from November 29th to December
3rd 2007 as part of the evaluation of the Puma property. Samples were taken for validation from the
surface channel samples on surface. The drilling sites were visited and the sampling procedure
inspected by the author. The author came on a second visit from March 27th to March 29th 2008.
The author assisted and instructed Rocmec into drilling and sampling procedures of the Principal
and the Ramal vein systems considered the main priority at the time of this report. As part of an
independent sampling program, the author took channel samples of the drifts of the small galleries
covering the Puma mine situated on the Puma property.

In this document, the following terms are used:

Rocmec: Rocmec Mining Inc.


Geostat: Geostat Systems International Inc., firm of consultants mandated to complete this study
Smart Group: Smart Group Inc.: a company specialized in business administration
CIMM-PERU: Laboratory used for gold analysis in Lima, Peru.
SGS: SGS Mineral services Laboratory, Accredited independent Laboratory used for gold analysis in
Lakefield, Ontario, Canada.
DATUM: NAD 83: North American Datum 1983 coordinates system
DATUM: PSAD56: Provincial South American Datum 1956 coordinates system

This report was written by Geostat in accordance with the National Instrument 43-101 Policy
guidelines. This report was requested by Mr Donald Brisebois, President of Rocmec Mining Inc.
The author met on a regular basis with Rocmec management and relevant personnel by phone and
in the Geostat office located in Blainville, Québec.

Geostat Systems International Inc. 4


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 5

List of abbreviations

In this report, monetary units are in Canadian dollars (CA$) unless when specified in United States
dollars (US$). The metric units and measurements system is used throughout the report except for
the gold quantities, which are reported in Troy ounces.

A table showing abbreviations used in this report is provided below.

tonnes or mt Metric tonnes


tpd Tonnes per day
tons Short tons (0.907185 tonnes)
kg Kilograms
g Grams
oz Troy ounce (31.1035 grams)
g/t Grams/tonne
% Percentage (by weight when referring to grades)
ppm, ppb Parts per million, parts per billion
ha Hectares
m Meters
km Kilometres
m³ Cubic meters

Table 1: List of abbreviations

Geostat Systems International Inc. 5


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 6

3- Reliance on other Experts

To the author’s knowledge, there is no reliance on other experts.

Geostat Systems International Inc. 6


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 7

4- Property Description and Location


The Puma project is located 20.4 km northwest (NW) of the nearest village called Vitor and 40.2 km
West-Northwest (WNW) of the town of Arequipa, in the southern part of Peru. The property is
centered on UTM/UPS coordinates 189,877E and 8,199,376N (Zone 19K, NAD 83, Peru) on the
topographic map sheet 2538 III of the series J731. The name of the map sheet is Vitor of the
Arequipa department. The property is easily accessible with a 4x4 pick-up truck via a paved road
from Arequipa and an access road on both flat and mountainous relief.

A small mine called El Puma Mine is present on the Puma property. The mine is still active and
extracting gold. The amount of ore extracted is negligible.

Figure 1: Location of the Puma Property area near Arequipa, Peru


Geostat Systems International Inc. 7
Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 8

Rocmec is in the process of acquiring the PUMA property. This property is composed of six (6)
mining concessions:

The El Puma mining concession is owned by: Mr. Miguel Angel Loayza Quintanilla and Mrs Maria
Diaz (50%) and Mr José Navarro Pinedo and Mrs Mery Teresa Zavala Zagarra (50%). The
concession has a surface area of 400 hectares.

The El Puma 2 mining concession is owned by: Mr. Miguel Angel Loayza Quintanilla and Mrs Maria
Diaz (50%) and Mr José Navarro Pinedo and Mrs Mery Teresa Zavala Zagarra (50%). The
concession has a surface area of 200 hectares.

The El Puma 4 mining concession is owned by: Mr. Miguel Angel Loayza Quintanilla and Mrs Maria
Diaz (50%) and Mr José Navarro Pinedo and Mrs Mery Teresa Zavala Zagarra (50%). The
concession has a surface area of 100 hectares.

The La Quinta mining concession is owned by: Mr. Miguel Angel Loayza Quintanilla and Mrs Maria
Diaz (100%). The concession has a surface area of 500 hectares.

The La Quinta 2 mining concession is owned by: Mr. Miguel Angel Loayza Quintanilla and Mrs
Maria Diaz (100%). The concession has a surface area of 300 hectares.

The Colibri mining concession is owned by: Marius Félix Barrer Weibel (100%). The concession has
a surface area of 200 hectares.

Geostat Systems International Inc. 8


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 9

Figure 2: Claim map of the Puma property.

Mining concessions list of the Arequipa Area, April 16, 2008

Nº Code Name Subst. Title Reference Date Has. State Dept. Prov. Dist.

4 050015606 COLIBRI 2006 Met. MARIUS FELIX KARRER WEIBEL 2006-07-20 00:00:00 200.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor

5 050004803 EL PUMA Met. EL PUMA TORCONTA S.C.R.L. 2003-04-07 00:00:00 400.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
6 050004905 EL PUMA 2 Met. EL PUMA TORCONTA S.C.R.L. 2005-04-15 00:00:00 200.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor

8 050006507 EL PUMA 4 Met. EL PUMA TORCONTA S.C.R.L. 2007-02-15 00:00:00 100.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor

22 050009004 LA QUINTA Met. MIGUEL ANGEL LOAYZA QUINTANILLA 2004-06-01 00:00:00 500.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor

23 050015506 LA QUINTA 2 Met. MIGUEL ANGEL LOAYZA QUINTANILLA 2006-07-20 00:00:00 300.00 D.M. en tramite D.L. 708 Arequipa Arequipa Vitor
Total 1700.00

Geostat Systems International Inc. 9


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 10

Concessions coordinates in NAD 83


Concession ID------ Zone Easting Northing
El Puma ELpuma1 19k 190000 8203000
El Puma ELpuma2 19k 190000 8200000
El Puma ELpuma3 19k 188000 8200000
El Puma ELpuma4 19k 188000 8201000
El Puma ELpuma5 19k 189000 8201000
El Puma ELpuma6 19k 189000 8203000
El Puma 2 puma2-1 19k 193000 8201000
El Puma 2 puma2-2 19k 193000 8199000
El Puma 2 puma2-3 19k 192000 8199000
El Puma 2 puma2-4 19k 192000 8201000
El Puma 4 puma4-1 19k 192000 8197000
El Puma 4 puma4-2 19k 192000 8196000
El Puma 4 puma4-3 19k 191000 8196000
El Puma 4 puma4-4 19k 191000 8197000
La Quinta quint-1 19k 192000 8202000
La Quinta quint-2 19k 192000 8199000
La Quinta quint-3 19k 189000 8199000
La Quinta quint-4 19k 189000 8200000
La Quinta quint-5 19k 191000 8200000
La Quinta quint-6 19k 191000 8202000
La Quinta 2 quin2-1 19k 191000 8199000
La Quinta 2 quin2-2 19k 193000 8799000
La Quinta 2 quin2-3 19k 193000 8797000
La Quinta 2 quin2-4 19k 192000 8197000
La Quinta 2 quin2-5 19k 192000 8198000
La Quinta 2 quin2-6 19k 191000 8198000
Colibri COLIB-1 19k 194000 8199000
Colibri COLIB-2 19k 194000 8197000
Colibri COLIB-3 19k 193000 8197000
Colibri COLIB-4 19k 193000 8199000

Table 2: Puma Mining concessions information and coordinates Datum: PSAD56

Geostat Systems International Inc. 10


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 11

5- Accessibility, Climate, Local Resources, Infrastructure and


Physiography

Accessibility
The Puma property is easily accessible via the Pan-American Highway, a major road linking
the most populated towns of Peru, and by a gravel and sand road linking the property to the
paved road. This gravel road is new and was done by a loader (see picture below). The road
gives access to the main entrance of the Puma mine portal.

The topography is steep and mountainous. The bedrock is sparsely covered by elluvial sandy
material and ashes up to one meter thick. Overburden is very thin varying from 10cm to a
maximum of 1 meter.

Climate and Vegetation


The climatologic data used to characterize the sector under study comes from the
meteorological and Hydrological National service of Peru.

The topographically high parts, receive greater precipitation than the low parts; therefore,
the amount of precipitation decreases towards the West, being the driest South-western part
of the area.

The average annual precipitation in the area, registered in year 1965 is the following:
59,4 mm in Huanca, 61:8 mm in Socabaya and 109,6 mm in Pampas de Arrieros.

The minimum monthly average of precipitation occurs during the months of April to
August and the maximum monthly average occurs during the months of January to March.

Geostat Systems International Inc. 11


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 12

Figure 3: Dry and mountainous near the Puma Property

Temperature
The monthly average of temperature in Arequipa (year 1941 to 1964), has a maximum
average of 23.5°C for the months of December to March and minimum average of 3.7°C for
the months of June and July. The registered temperature is related to the altitude, the low
parts are warmer than the high parts.

Winds
Constant wind is blowing on the region of the property. Wind is rising at noon and
decreases in speed at dawn. Geostat did not have sufficient data concerning speed and
direction of wind at the time of writing this report.

Agriculture
Agriculture is mainly restricted to valleys with permanent flow of water and its surroundings.
In fact, there are no agriculture activities on the property. However, agriculture in the region
shows a great variety of products like panllevar, alfalfas and fruit trees. The costanera Plain
and the Cordillera de Ladera do not have much vegetation, except for some cactus and
others seasonal plants.

Geostat Systems International Inc. 12


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 13

Figure 4: Agriculture in the Vitor Valley

Local Resources
The regional resources in regards to labour force, supplies and equipment are sufficient, the
area being well served by geological and mining services and equipment companies. The
closest town of Arequipa provides the workforce for other mines in the area. The mining
activities in Peru and the region near Arequipa are welcomed. There has been mining
activities for a long time in Peru.

Infrastructure
A 20 km gravel access road is linking the property to the Pan-American Highway. In the
eventuality of a mining activity by Rocmec, a more appropriate access road will be needed. A
nearby electricity power lines along the Pan-American Highway will easily provide standard
domestic utility electricity. In the eventuality of a portable small scale mill, a new, more
powerful power line will be needed. The option of building the portable small scale mill in
town in the industrial park is an option worth looking. Accommodations are present on the
property. However, they are not acceptable from a Canadian point of view. This subject is
addressed and will be discussed in due time.

Geostat Systems International Inc. 13


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 14

Physiography
In the region of Arequipa six different geomorphological units have been distinguished.
They are: Planicie Costanera, Cordillera de Laderas, Spurs of the Plateau, High plateaus,
Barroso Volcanic Arc and the Arequipa Penillanura.

Planicie Costanera (Plain)


This plain is in the South-Western sector of La Hoja and is limited to the East, with the
Cordillera de Laderas and by the West, with the Cordillera de la Costa that is located outside
the studied area.

The costanera Plain is relatively flat and extensive, formed in sub-horizontal sediments of
cenozoic age; moderately cut by wide, flat bottom and deep, little tributary gorges of the
Vitor river. Their altitudes vary of 1400 m, near the south-western corner, to more than
2,000 m in the elevated parts with an inclined slope of 2.5% towards the Southwest.

The Vitor River runs through the plain in an ample valley, which its bed is 200 m from the
surface.

Cordillera de Laderas
This mountainous chain has a Northwest to south-eastern elongation that extends many
kilometres outside the region of Arequipa. Most of this unit is constituted of plutonic rocks.
But, towards the Northwest, metamorphic rocks of the Basal Complex predominate. And in
the south-eastern part, within the intrusive body, are some sedimentary rock remnants.

The relief shows strong slopes towards the flanks, with large but elevated summits,
represented by: Santa Rosa (2.982 m.), Torconta (3.040 m.), Las Laderas (2.620 m.) and San
Ignacio (2.655 m) characterized by rounded and rough forms. This hill chain has a dentritic
drainage system and is crossed by the encañonados del Sihuas and the Vitor valleys.

Spurs of the Plateau


This unit is included between the Cordillera Las Laderas and the upper course of the Yura
River. between the altitudes of 3,000 and 3,700 m. It presents a rustic topography, of
prominent reliefs, furrowed by numerous streams and deep valleys. Their forms are
intimately bound to the structure and the diverse resistance to the weathering and erosion of
the different lithological units. Also, the erosion has affected the old Slope surface (W. Jenks,
1948), worked before the deposition of Tacaza volcanics.

High plateaus
In the northern part of the region, on Spurs of the Plateau, appear small areas, more or less
flat, with slight undulations and of irregular contours, separated by deep streams that cut the
sub-horizontal volcanic layers.

The High plateaus present an inclination towards the West-Southwest, with a slope of 4 to
5% and their altitudes vary of 3,600 to 3,800 m. Some of these surfaces, mainly Las Labradas
in the Tacaza volcanics, seem to be remnants of an erosion surface that inclines towards the

Geostat Systems International Inc. 14


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 15

Southwest. This surface could include great extensions. Other areas of similar altitudes
appear in the neighbouring regions of Chivay and Characata. This surface could correspond
to the surface Puna of Mc. Laughlin.

Barroso Volcanic Arc


S. Mendivil (1965), describes to this unit as a rustic mountain range of volcanic origin
following an alignment clearly circular with its concavity towards the Pacific.

Part of this chain is in the Northeast sector of the region and is formed by the volcanic
apparatuses of the Chachani (6057 m), Nocarena (5,784 m) and Las Minas (5,015 m), In
addition to numerous cones of smaller altitude. These volcanic apparatuses rise from the sea
level to 4,000 m in the Plateau (Region of Characato) and 2,800 m in the area of this study.
It also developed a system of drainage of radial design.

The Chili river that enters the area of Arequipa at a level of 2,600 m, forms a deep canyon
that separates the Chachani and Misti volcanoes, which ends in the region of Characato.

The escarped summits of the Chachani and Nocarane are the only ones covered by perpetual
snow; nevertheless, at the times of major precipitation, great part of this Mountain range is
cover by a little persistent snow layer. The glacial erosion does not seam to have modified
the region.

Arequipa Penillanura
It is a surface smoothly waved of triangular form, included between the localities of
Arequipa, Yura and the confluence of the Chili and Yura rivers. It is surrounded as well by
high hills that are part of Cordillera Las Laderas, of Spurs of the Plateau and the Barroso
volcanic arc.

The penillanura is formed of tuffs of the Sencca volcanic that occupied the depression,
possibly, by erosion. It presents a system of parallel gorges, with temporary volumes and
cross-sectional sections in "V", draining towards the Chili and Yura Rivers.
The altitudes of this surface range from 1,800 to 2,600 m with a 5% slope, inclined towards
the Southwest.

Drainage
The drainage of the studied area is made by the Sihuas,Vitor, Yura and Chili Rivers and by
numerous streams and brooks. The Sihuas River flows towards the Southwest, crossing
Mesozoic rocks and the Basal Complex, formed of steep canyon in its short route inside the
mentioned area.

The main tributaries are the Pichirigma, Huanca, Taya and Lluta Rivers, which have
permanent water and run along steep valleys inside canyons, generally with a cross-section in
"V". The Yura River, has its river basin in the South skirt of the Snow-covered Ananta in the
region of Chivay. The upper part enters the region of Arequipa up to the altitude of La
Calera and receives the contribution of numerous brooks. It follows a South-Southwest
trend down to the confluence with the Chili River.

Geostat Systems International Inc. 15


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 16

The Yura River, for 50 km approximately, forms a deep strait canyon with steep flanks.
Nevertheless, when it crosses the lutites of the Cachios formation, it widens with less steep
flanks.

The Chili River originates in the confluence of the Sumbay and Blanca Rivers in the region
of Characato, and enters into the area from the East through a deep canyon of escarped
flanks, between the Chachani and Misti volcanoes.

The Chili Valley enters at high altitude in the Acequia Alta following a coarse asymmetrical
profile down to the station of Huayco. From here, it follows a canyon bordering and cutting
intrusive rocks of the Cordillera Las Laderas until his confluence with the Yura River.

The Vitor River originates from the union Yura and Chili near the small village of Palca at
1,500 m. The beginning is represented by a canyon crosscutting the Cordillera Las Laderas.
The water erosion formed an ample valley in the area of softer sedimentary rocks, whose
bottom has 1.5 km wide. In this widened section of the valley, to the height of the La
Quebrada property ends the Millo, Las Laderas and La Quebrada gorges.

The Vitor River, in this studied area only crosses 23 km. It joins the Siguas River (Region of
Mollendo) forming the Quilca River ending in the Pacific Ocean.

Geostat Systems International Inc. 16


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 17

6- History

The main workings were done in the batholith area near the small Torconta mount and the
Vitor River (Vargas, 1970). In the Torconta mine, located in the occidental side of the small
mount of the same name (Jatuncucho Creek), workings were done on the quartz veins inside
the tonalities. These veins are small and of lenticular forms.

Geostat saw physical evidence of artisanal underground workings throughout the property,
believed to have been started intermittently from the 70’s. The author was not able to
retrieve documented work done on the property.

It is important to mention the presence of a small scale mine still in operation on the La
Quinta mining concession with a capacity of 3 tonnes per day. The mine was active and
extracting ore at the time of the visit. A limited amount of ore estimated to an average of less
than 1,000 tonnes was extracted from this mine.

A nearby small mill using Cyanide leaching method is also present. The average capacity is 3
to 10 tonnes per day at an unknown recovery. However, Rocmec estimated the recovery
around 50%. Unselected and handpicked tailings samples situated at the entrance of the
mine gave from 7.31g/t Au to up to 15.82 g/t Au (Labrècque P.C., 2007).

Geostat Systems International Inc. 17


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 18

7- Geological Setting

Regional Geological Setting


The Puma property is located in the west-northwest of the town of Arequipa. It consists of
Cretaceous to Tertiary intrusive rocks, Jurassic to Cretaceous and Tertiary sedimentary
formations and late tertiary to quaternary volcanic to pyroclastic rocks. The property is
situated entirely in the Torconta tonalite batholith.

This summary is giving the geological description of the Arequipa sheet (around 2,950 km²).

Six (6) geomorphological units are considered: Planicie Costanera, Cordillera de Laderas,
Estribaciones del Altiplanicies, Arco Volcánico del Barroso and Penillanura de Arequipa.

The age of rocks vary from Precambrian to Recent, starting with those of the Basal Complex
which are the oldest ones and consist of various types of gneisses, amphibolites and small
stocks of potassium granites.

In this area there are no Palaeozoic or Triassic rocks and the volcanic-sedimentary sequence
of the Liasico (Chocolate volcanics) is sitting in angular discordance on the Basal Complex.

The Socosani formation, of mid Jurassic age is consisting mainly of sedimentary limestone,
on top of debris from the Chocolate volcanic and is in discordance with the Yura group in
many cases.

Inside the Yura group, the different constituents are Puente, Cachios, Labra, Gramadal and
Hualbuani, from the superior Jurassic and maybe the Neocomiano, corresponding to a
marine facies to epicontinental.

The marine conditions are more and more apparent from the mid Cretaceous, to arrive to
the best development and extension in the Coniaciano, with the deposition of formations
Murco and Arcurquina; and to terminate like a retreating sea, the gypsum of the Chilcane
formation, which is the completion of the marine sedimentation in this area.

After the original emersion of the first mountainous move, the reddish deposits of the lower
Tertiary appeared corresponding to the Huanca and Sotillo formations.

The Tacaza group composed of volcanic and sedimentary rocks is spreading with angular
discordance above the Huanca formation.

Inside the upper Tertiary are the Millo formation and the volcanic Sencca that sometimes
appeared in various phases of erosion, leading to the beginning of the Quaternary, where
intense volcanism gave birth to the Chila and Barroso volcanoes.

The glaciation does not appear to have been very active in this area ; and the recent deposits
are composed of the alluvial and wind erosion types.

Geostat Systems International Inc. 18


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 19

The Cordillera de Laderas batholith is mainly composed of intrusive rocks of 6 different


units: Torconta Tonalites, Gabbro-diorite group, Ladera Tonalites, Vitor group,
Granodiorites and Quartz Dykes, Aplites and Pegmatite.

Stratigraphy
In the Arequipa region, different lithological rock units of sedimentary, igneous and
metamorphic natures are exposed, of various ages going from Pre-Cambrian to recent
Quaternary.

The oldest rocks are present in the form of various gneisses and small stocks of potassium
granites that constitute the complex of Basal de la Costa, of Precambrian age.

In this area there are no outcrops of Palaeozoic age like in other sites of southern Peru,
neither Triassic formations have been identified.

The Jurassic and Cretaceous formations, most likely from sea environment are offering a
sequence which is well developed and exposed; even if sometimes in watered areas the
stratigraphy has not been well defined due to the presence of fossils.

For the Tertiary rocks, no accurate age can be given because of the lack of fossils, but an
estimation of age was given of the basis of comparing with other rock of close areas.
Therefore the Sotillo and Huanca formations are considered of the lower Tertiary age, based
on their stratigraphic location and structural correlations, without evidence of connections
between them, because they are separated by the mountainous area of Laderas and Calderas
and also the sedimentary Mesozoic sequence. From the same point of view between the
Sotillo and Tacaza sequences, there is no evidence to their relations as this exists between the
Tacaza and Millo formations. This last exposure is younger than the volcanic Tacaza, even it
contains parts of it. These last superior formations are represented without any doubt above
the ones mentioned before.

The oldest Quaternary is mainly represented by the rocks of the Barroso group, in different
volcanic units of Chila and Barroso, which are forming the mountains of Chachani and
Misti. Above these groups are the fluids deposits of mud, moraines, fluvioglacial,
pyroclastics, alluviums and wind erosion material.

Complex Basal de la Costa


This Complex called Basal de la Costa (Bellido and Narvanez, 1960), is an assembly of
metamorphic rocks of similar characteristic to those which are exposed in the north-western
part of the Arequipa sheet, forming a wide band. On the West side it is bounded by the
Tertiary formations, on the East by the Mesozoic formations; to the South by the Torconta
tonalites (cutting across a zone of debris of metamorphic rocks inside a large intrusive mass);
and to the Northeast is next to the Aplao sheet.

Geostat Systems International Inc. 19


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 20

On the south limit of the sheet, these metamorphic rocks are exposed as a extension of the
Cerro Verde outcrop (Hoja de la Joya) and others small outcrops, which are disseminated in
the Chili river, close to the Charcani hydropower installations (Jenks, 1948).

The basement rocks of this unit are crystallized and represent various varieties of gneiss,
which have been intruded by old small stocks of potassium granites.

Gneiss
Three types are easy to differentiate: banded gneiss, gneiss of the quartz-feldspars type and
gneiss with amphibolites.

The banded gneiss is characterized by alternative felsic and mafic bands, of various
thicknesses. The first ones are of rosy color and contain mainly quartz and feldspars and
some areas are forming “augen gneiss”. The second ones are dark grey to greenish with a
high content of amphiboles.

Locally there are transitions between the banded gneisses and the other types; therefore in
some sites where the felsic bands are dominant, the gneiss is quartzo-feldspathic, which
according to the content of different mineral corresponds to a granitic gneiss, adamelitic or
granodioritic. Also in some places the amphibolite is dominant mainly along the rim NE and
SW of the batholith.

The microscopic analysis of samples, are showing that the main felsic components of the
gneisses are: quartz, microcline, perthite, plagioclase, amphibole, and biotite; as accessories
constituents are sphene, zircon, magnetite, chlorite, apatite and garnets.

The mineral composition, the texture and structure, are aiming at the idea that these gneisses
are the result of the transformation of a sequence of feldspar sands, greywacke with volcanic
inter-bedded material.

The bedding in the outcrop located NW in the geological sheet has an alignment NNW and
a near vertical dip.

Alkali Granites
These old intrusions are intimately related to other gneissic rocks of various locations like in
the vicinity of the river Siguas.

The rock is pale grey to pink, generally coarse grained, generally foliated with prominent
lamellas of muscovite in the foliation planes.

The mineral constituents are: Quartz, Feldspar and muscovite. The alkali feldspar is mainly
microcline or perthite.

The granite does not often show definite contacts with the gneiss. There are migmatites
zones where the granite is mixed with the gneiss and especially with the amphibolite.

Geostat Systems International Inc. 20


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 21

Local Geological Setting


The Puma property is situated entirely in the Torconta Tonalite Batholith.

Torconta Tonalite
This so called unit represents the core of the mount Torconta and around it. The lithology
differs from site to site but the most extensive one is composed of tonalite frequently folded
but without banding.

The Torconta tonalite is intruding the metamorphic rocks of the Basal Complex, where in
many areas there is metamorphic debris included inside the intrusive mass. Also, there is
presence of sediments of the Yura Group and the Murco formation along the oriental rim.
Intrusion of the Laderas Tonalite is also visible without any direct relation with the rocks of
the Granodiorite group. (Foto No 7 of Boletin No 24, April 1970).

The rocks are greenish grey, of large grains, of various grain size and porphyrytic in some
spots. In general the xenoliths and the phenocrysts are elongated along the foliation planes.

In thin sections the texture is granular hipidiomorphic or alotriomorphic with many samples
showing a well define cataclastic structure.

The plagioclase is the most abundant mineral, highly altered with sericite. The quartz grains
are elongated and fractured. The mafic elements are altered and chloritized. The others
components are: apatite, sphene and zircon, and of secondary importance there is sericite,
chlorite and epidote.

Located to the southeast of the Torconta tonalite is the Laderas tonalite. See description
below.

Laderas Tonalite
The best exposed part of this plutonic unit is located inside the small hills of Las Laderas
and Huasamayo, smaller exposures are seen inside the mount Santa Rosa at the occidental
limit of the geological sheet, along the old de Quishuarani, in Mollebaya Chico and also in
the Enlozada creek, next to the village of Congata.

The outcrops are showing a smooth topography and the rocks are with large grains, white to
rosy and dark grey following contamination from the gabro-dioritic group.

The hornblende is showing well formed prisms of 1 cm long except in the neighbouring of
the remaining of apinita where they are up to 4 cm with these proportions limited by the
assimilation with the basement rock.

On the basis of the hornblende and biotite two varieties of the Laderas tonalite are present,
even in some areas the biotite is derived from the hornblende. Normally the crystals are
regrouped in one parallel direction, mainly E-W giving a banded aspect.

Geostat Systems International Inc. 21


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 22

It is estimated that this alignment was caused by a protoclastic event which correspond to
the late intrusion stages and not to a phenomenon tectonic posterior to the main tonalite
body already solidified.

The micropetrographic study is showing the followings:


The plagioclases are represented mainly by oligoclases crystals which are up to 3.5 mm
generally fractured and with irregular contours; the quartz is very deformed by the high
pressures; the hornblende has been partially replaced by biotite and sometimes is remaining
as debris in late minerals; the biotite is aligned according to tendencies in some areas;
magnetite, sphene and zircon are rare.

The secondary elements are mainly epidote, chlorite and sericite.

Formation Millo
The name describes a stratigraphic series consisting of conglomerates, tuffaceous sandstones
reworked tuff lenses, similar to what is shown by S. Mendivil in the Ocoña valley and the
Tinajas river as "Conglomerate Castles" (conference on the Tertiary in southern Peru issued
in the week geological V in 1968).

Outcrops of this unit are on the flanks of the Vitor Valley, in the Millo creeks and on the
Hillsides and the western edge of the batholiths. All these places are located in the south-
western part of the sheet 33S.

The lower contact of this unit is well marked, since it relies in disconformities over the
Sotillo red sandstone formation, and in the same way, is encountered underneath, the Sencca
volcanics, which sometimes is absent because its strongly lenticular.

The lithology is mainly composed of moderately consolidated conglomerates, composed in


varying proportions of thick intrusive clasts more or less rounded, quartzite and volcanics
from the Tacaza Group. The matrix is a coarse grained tuffaceous sand.

The sandstone is grey, fine to medium grained, up to conglomerate size, stratified in beds of
up to 80 cm thick.

Re-deposited Tuffs in the form of lenticular layers are alternating with abundant inclusions
of lapilli and pumice.

The layers are horizontal or slightly tilted to the Southwest, except on the slopes of the
intrusive, where the dips are greater. The average thickness of these formations is estimated
at 60 m.

Geostat Systems International Inc. 22


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 23

Figure 5: Regional Geological map

Geostat Systems International Inc. 23


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 24

8- Deposit Types

The mineralized veins are composed of milky quartz, and frequently associated with epidote,
but rarely associated with pyrite. The width of this vein varies from few centimetres (3 to 15
cm on average) to one metre (average of 50 cm). The length varies from one to hundred
meters. The vein was followed over 450 metres. The mineralization appears to be restrained
to the vein and its altered wallrock (maximum of 15cm). Hematite and pyrite are present in
the mineralized quartz vein. The vein appears to undergo pinch and swell both in length and
in depth.

The veins are present in the host rock consisting of the Torconta tonalite of late Lower
Cretaceous. It is medium to coarse grained and equigranular.

Some metric dykes were encountered and are believed to be of diabase (dolerite)
composition by the author. The proximity of the dykes to the vein systems may suggest a
close relation to the setting of the mineralisation. More details are needed at this moment for
a complete detailed geology. There are faults throughout the property but only few of them
were observed underground.

Geostat Systems International Inc. 24


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 25

9- Mineralization

The mineralization of this area is inside the intrusive rocks of the Vitor group, the Las
Laderas and Calderas tonalites, Torconta tonalites and sometimes in associated dykes.

These deposits have been worked out mainly for gold and copper, but are now totally
abandoned; while the deposits of gypsum, limestone, marble, igneous rocks, gravel are being
exploited.

Gold
Gold is present in the milky quartz veins, and frequently associated with epidote, but rarely
associated with pyrite. The width of these veins varies from few centimetres to one metre,
and the length from one to hundred meters. The mineralization is usually of low content and
appears in some cases to be economic (Jenks, 1948). The main workings were done in the
batholith area near the small Torconta mount and the Vitor River.

In the Torconta mine, located in the occidental side of the small mount of the same name
(Jatuncucho Creek), workings were done on the quartz veins inside the tonalities. These
veins are small and of lenticular forms. This mine is not on the property and is located 3km
northwest of the property.

On the Puma property, the same mineralization is present. Reddish altered Hematite is
present inside the veins. Some structures show hematite and limonite alterations and come
out with up to 6.18 g/t Au in the wallrock.

The Principal vein is composed mainly of quartz. Hematite and disseminated pyrite are also
present with a maximum of 5% generally. The Ramal vein is composed mainly of quartz.
Hematite and disseminated pyrite are also present with a maximum of 5% generally. The
Pollo Vein is composed mainly of quartz. Hematite and disseminated pyrite are also present
with a maximum of 5% generally.

Geostat Systems International Inc. 25


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 26

Figure 6: Ramal mineralized vein (0.50m) inside underground workings

The gold mineralization on the Puma property is associated to quartz veins. The quartz veins
width varies from few centimetres to one metre, and the length from one to hundred meters.
Assay results from channel sampling of the Principal and Ramal veins gave up to 98.2 g/t Au
over 60cm (Principal vein in the Puma Mine adit). The calculated average is 15.66 g/t Au
(Not weighted average).

Also some prospecting workings were done on the left side of the Chili River, around 4 to 5
km before the junction with the Vitor River, where small lenses of quartz were present along
a fractured zone inside the Ladera tonalite. (Vargas, 1970)

Copper
Neither exploration nor exploitation work for copper was done and will be undertaken on
the property for the moment. Copper mineralization on the property will not be addressed in
this present report.

Copper mineralization is inside a zone of quartz and tourmaline and was described by W.
Jenks (1948).

Inside the Gloria mine, located at the coordinated intersection between 71 º 46’ West and
16º22’ South, the workings were done in quartz and tourmaline veins containing copper and
iron. These veins were East-West aligned, with a vertical dip and developed along a fractured
zone inside the Vitor group. The main workings, close to surface, are about 100 meters long
and 3 meters wide.

Geostat Systems International Inc. 26


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 27

10- Exploration

To the author’s knowledge, little or no documented exploration work is available. Geostat


saw physical evidence of artisanal underground workings throughout the property, believed
to have been started intermittently from the 70’s. The author was not able to retrieve
documented work done on the property.

No detailed land survey was done on the property. No detailed geological mapping was done
on the property. No soil sampling program was done on the property. No previous diamond
drill program was done on the property prior to the 2007 Geostat site visit. Information was
verbally given to the author of the presence of a geophysical survey covering a large area
including the property. The author suggests negotiations to acquire the geophysical survey
data in the future.

Local Grid
The Local grid used is based on the PSAD 56 coordinate system used widely in Peru. The
same grid is used for the location of the drill holes and surface channel samples through out
the property.

Late 2007 Mapping, trenching and sampling


In late 2007, Trenches were hand dug on the property by local workers under supervision of
Mr. Juan Alvarado, independent Peruvian geologist established in Arequipa. Mr. Juan
Alvarado has a good knowledge of the area. The trenches were dug every 25 meters. Not all
trenches were sampled, only those with apparent veins or structures. The trenches were
relatively small (1.5 x 3m) but permitted to unveil the continuity of the veins over an
appreciable distance:

The Principale vein is retraceable over 450 meters on surface, 15 cm thick on average with an
observed maximum thickness of 50 cm and has a NW-SE orientation, dipping at 80-85° to
the SW.

The Ramal vein is retraceable over 300 meters on surface and is 25 cm thick on average with
an observed maximum thickness of 50 cm and has an N-S orientation, dipping 70 to 85° to
the W.

It is important to note the presence of underground artisanal old workings following the
Principale vein. Due to the relative unsafe conditions of these openings, the author did not
visit the sites that were too small or too deep. See picture below.

Geostat Systems International Inc. 27


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 28

Figure 7: Location of the 2007 surface channel samples.

Geostat Systems International Inc. 28


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 29

Figure 8: Photo of an old underground artisanal working.

2008 Sampling and cartography of the Puma property


During the months of January and February 2008, Sr. Juan Alvarado initiated a vast sampling
program of the known veins and gold occurrences throughout the most part of the property.
The veins varied from a few meters to 570m in length, from 0.10m to 1.20m in size and
from up to 48.47 g/t Au with an average of 1.94/g/t Au. A total of 21 veins and
occurrences were discovered and sampled for a total of 165 samples covering an area of 20
km2. See map below.

When possible, the artisanal workings following the veins were sampled. The Pollo vein was
sampled on surface and inside the 2 drifts by channel sampling by Sr. Juan Alvarado,
independent Peruvian geologist engineer.

The Pollo vein is retraceable over 600 meters on surface, 25 cm thick on average with an
observed maximum thickness of 40 cm. It has a NW-SE orientation. No dipping was
recorded.

Geostat Systems International Inc. 29


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 30

188000-E

189000-E

190000-E

191000-E

192000-E

193000-E

194000-E

195000-E
8203000-N 8203000-N

INCA
1901-1902-1903
1904-1905-1906

8202000-N 8202000-N

LA QUINTA
POLLO 1 CAFE
1907-1908-1909
1910-1911-1912 1964-1965-1966 7239-7240-7241
1913-1914-1915 1961-1962-1963 7236-7237-7238
1916-1917-1918 7233-7234-7235
8201000-N POLLO 2 LA CURVA 8201000-N
POLLO NORTE COLORADA
1919-1920-1921 BLANCA
1952-1953-1954
1979-1980-1981
1922-1923-1924 1976-1977-1978
1928-1929-1930 1955-1956-1957
1958-1959-1960
RAMAL N
EL PUMA
1973-1974-1975
1925-1926-1927 1970-1971-1972 CARRETERA 1
7242-7243-7244
7245-7246-7247
1967-1968-1969
VETA 1
7248-7249-7250
7251-7252-7253
7254-7255-7256
8200000-N

CAMP W
POLLO
1937-1938-1939
1940-1941-1942
1943-1944-1945
VETA 1W
7227-7228-7229
7224-7225-7226
EL PUMA 2 8200000-N

1931-1932-1933 1946-1947-1948
7230-7231-7232 MACHAZO 1
1934-1935-1936 7215-7216-7217 7257-7258-7259 VETA 2
1949-1950-1951 7212-7213-7214 7260-7261-7262
7263-7264-7265
7209-7210-7211
1994-1995-1996
1991-1992-1993 E-W
CRESTA POLLO MACHAZO 2 Mining Concessions
1982-1983-1984 7218-7219-7220
1985-1986-1987 7221-7222-7223 EL PUMA - EL PUMA 2 - LA QUINTA
1988-1989-1990
8199000-N "2008 Vein Sampling Program
8199000-N
LECHOSA LECHOSA 1 Drawn by: ING J. ALVARADO Z.
Date:March 2008
1997-1998-1999 7203-7204-7205 Modified by: Maxime Dupéré geo.
188000-E

189000-E

190000-E

191000-E

192000-E

193000-E

194000-E

195000-E
2000-7201-7202 7206-7207-7208

Figure 9: Map of surface sampling on the property (DATUM: PSAD56)

Geostat Systems International Inc. 30


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 31

2008 Land survey of the Puma property

During the months of April to May 2008, an independent Peruvian land surveyor initiated a
vast survey of the property including location of the different veins, surface channel samples
and collar survey. See figure 10.

Geostat Systems International Inc. 31


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 32

11- Drilling

Rocmec carried out a small exploration program including outcrop sampling, topographic
survey and diamond drilling Rocmec drilled four (4) drill holes for a total of 608.3m. Rocmec
contracted Gemco S.A.C., a Peruvian company based in Lima to carry out the drilling
program. NQ core is recovered. The entire core is stored at the project site. Two (2) holes
were drilled horizontally, Two (2) other were drilled at -20° and – 30°. The holes were drilled
to the north up to the northeast. See next figure.

The objective of this program is to explore for near surface gold mineralization within the
quartz veins. These holes have tested and attempted to better outline the areas close to the
previously discovered and mined gold mineralization. See previous map drill hole collar
locations.

The procedures used during the diamond drilling programs are as follows:

Holes are drilled to produce NQ-sized core.


The collar locations of all drill holes are surveyed using Geographic Positioning System
(GPS) and marked in the field with azimuth and inclination of each hole.
Lithological logging is done on drill core. This includes marking lithological contacts,
descriptive geology, core diameter, and core recovery and assay results entry. All information
is recorded on handwritten logs. Currently, key information is summarized in a digital
database.
Systematic measurements of Rock Quality Designation (RQD) were not done.

A total of 7 mineralized intercepts were encountered in the drill holes, only 2 gave interesting
results. See next table.

A total of 31 mineralized intercepts were recorded for the underground workings including
the Ramal vein and Pollo vein. These intercepts were taken into account for the geological
modelling and resource estimation of the Puma Property’s mineral deposit. See next table.

Geostat Systems International Inc. 32


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 33

E E E E E E E
- - - - - - -

8
2
0
0
2
0
0
-
N

8
2
0
0
2
0
0
-
N
0 0 0 0 0 0 0
0 0 0 0 0 0 0
8 0 2 4 6 8 0
9 0 0 0 0 0 1
8 9 9 9 9 9 9
1 1 1 1 1 1 1

8
2
0
0
0
0
0
-
N

8
2
0
0
0
0
0
-
N
8
1
9
9
8
0
0
-
N

8
1
9
9
8
0
0
-
N
B
M
-
1
8
1
9
9
6
0
0
-
N

8
1
9
9
6
0
0
-
N
8
1
9
9
4
0
0
-
N

8
1
9
9
4
0
0
-
N
E E E E
- - - -
0 0 0 0
0 0 0 0
8 0 2 4
8
1
9
9
2
0
0
-
N

9 0 0 0
8 9 9 9
1 1 1 1

Figure 10: Land Survey, Collar and sample Survey of the Puma Property Selected Area (DATUM: PSAD56)

Geostat Systems International Inc. 33


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 34

Hole Name From To Zone Au g/t


RSE2 FLAT 202.30 202.51 - 0.01
RSE2 FLAT 187.70 187.85 - 0.04
RSE1 FLAT 182.45 183.05 - 0.01
RSA -30 91.20 92.60 - 26.92
RSE1 FLAT 126.70 127.25 - 0.04
RSE1 FLAT 119.95 120.55 - 2.89
RSD -20 56.25 56.70 - 0.14
POLLO-A1 0.00 0.85 Pollo 1.03
POLLO-A2 0.10 0.80 Pollo 14.54
POLLO-A3 0.00 0.85 Pollo 2.36
POLLO-A4 0.00 0.70 Pollo 1.10
POLLO-A5 0.00 1.05 Pollo 1.73
POLLO-A6 0.00 0.80 Pollo 3.02
POLLO-B9 0.00 1.15 Pollo 18.24
POLLO-B1 0.00 0.75 Pollo 4.95
POLLO-B8 0.00 1.50 Pollo 1.69
POLLO-B7 0.00 1.50 Pollo 5.10
POLLO-B6 0.00 1.20 Pollo 2.77
POLLO-B5 0.00 0.90 Pollo 1.27
POLLO-B4 0.00 1.20 Pollo 2.40
POLLO-B3 0.00 1.30 Pollo 2.39
POLLO-B2 0.00 1.30 Pollo 1.60
PUMA0+60 0.00 0.32 Principale 52.68
PUMA0+55 0.00 0.60 Principale 5.37
PUMA0+50 0.00 0.70 Principale 11.75
PUMA0+45 0.00 0.42 Principale 23.49
PUMA0+40 0.00 0.50 Principale 14.21
PUMA0+35 0.00 0.62 Principale 9.48
GEOSTAT0+30 0.00 0.45 Principale 21.23
PUMA0+30 0.00 0.48 Principale 15.90
GEOSTAT0+25 0.00 0.40 Principale 8.35
PUMA0+25 0.00 0.55 Principale 5.14
PUMA0+15 0.00 0.80 Principale 76.47
GEOSTAT0+10 0.00 0.30 Principale 17.29
PUMA0+10 0.00 1.00 Principale 27.19
PUMA0+05 0.00 0.45 Principale 20.82
GEOSTAT0+39.1 0.00 0.45 Principale 21.00

Table 3: List of the mineralized intercepts of the Puma mineral deposit

Geostat Systems International Inc. 34


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 35

12- Sampling Method and Approach


We do not have much information on the detailed methodology of sampling used before the
exploration work on the property by Rocmec since there was practically none effectuated
before. All we can state is that the gold content was visually estimated and processed
accordingly in the small scale mill and cyanide leach facility.

2008 Core sampling


Rocmec initiated a quality control and assurance protocol for its gold exploration program
for the samples resulting from the drilling campaign of 2008. This procedure did not include
the systematic addition of blank samples and certified standards. However, Geostat asked
that every pulps and rejects with results over 5 g/t Au to be sent back for gold analysis to a
second commercial laboratory. The results were not available at the time of writing this
report.

Usually, blank samples are used to check for possible contamination in laboratories while
certified standards determine the analytical accuracy and precision. In this sampling program,
no blanks or standards were used because of the small amount of samples sent for analysis.
And the lack of previous assay values in the core.

Analyzed samples coming from half cut NQ cores and lengths varying from 0.3 to 1.0
metres were sent for analysis to CIMM-Peru Laboratory in Lima, Peru. Samples were
assayed by fire-assay (50g) followed by atomic absorption or gravimetric finish according to
industry standards. The laboratory itself is not certified and their certificates of analysis are
not sealed by a chemist but rather by an engineer. Its personnel follow strict written
procedures for the preparation and analysis of the samples. This second laboratory is Expert
Laboratory of Rouyn-Noranda. This laboratory is not certified but the methodology is well
documented and a quality control is in place. The certificates are not signed by a chemist. An
example is shown in appendix 5.

Geostat Systems International Inc. 35


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 36

Figure 11: Example of core in core box before sampling

Figure 12: Example of core sampling

Geostat Systems International Inc. 36


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 37

Figure 13: Example of samples of core and their numbers.

Figure 14: Example of core after sampling

Geostat Systems International Inc. 37


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 38

The author does not have any reason to believe that the sampling methodology used by
Rocmec and Geostat was inadequate for the Puma, Ramal and other veins and occurrences
sampled on the Puma property. Geostat carried out analytical checks of a series of drift
samples and surface channel samples. The results are presented in the data validation section
of this report.

2007 channel sampling


The channel sampling of the trenches was done under supervision of Mr. Maxime Dupéré
geo. The vein occurrences and its respective hanging wall and footwall were also sampled.
The host rock samples were collected to the approximate half size of the vein (or described
accordingly) to a maximum width if 5-10cm and up to 5 cm deep. The collection of the
samples was done using a chisel and a hammer. In a few cases, a circular rock saw was used
for cutting the quartz veins. See pictures below.

A total of 113 samples were taken for gold assay. The samples were sent to the CIMM-Peru
S.A.

Figure 15: Example of a sample taken using a chisel and a hammer.

Geostat Systems International Inc. 38


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 39

Figure 16: Example of a sample taken using a circular rock saw.

Geostat Systems International Inc. 39


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 40

13- Sample Preparation, Analyses and Security

Field Sample preparation and security

2008 drilling campaign


All of the four (4) holes on the Puma property contain assay certificates to support the
values found in the database.

The securely closed core boxes were sent from the drill site to the logging facilities by pick-
up. Afterwards, core boxes were placed in order on the tables or on the floor and opened for
logging and the identification of the mineralized intersects to be sampled by an independent
geologist and/or consultants. Core was described on paper. Geostat later transcript in the
Geobase drill hole database management software running on Microsoft Access and
developed by Geostat. Sections of the core to be analyzed were identified with a color
marker. Rocmec on-site labourers, technicians and geologists then prepared the sample
books, sample bags and tags accordingly. After the core was cut in half and placed inside the
core box, the identified samples were put in the corresponding sample bags. The bags were
then sealed and put into a bag for transport to the laboratory. The core splitting was done
with a chisel and a hammer. When the rock was soft enough, a knife was used.

All the samples taken by Rocmec were handled by Juan Alvarado, contracting geologist and
Mr. Edgar Vesentini of Smart Group. Logging was done by Juan Alvarado, contracting
engineer.

Mr. Maxime Dupéré, geologist of Geostat, helped to describe the core during the site visit.
In Geostat’s opinion, the sample preparation is adequate and was done according to the
industry standards.

2007 channel sampling program


All of the 113 channel samples on the Puma property contain assay certificates to support
the values found in the database.

The securely closed bags sent from the site to a storage area. Samples were previously
described on paper, bagged and labelled onsite and transcribed in an excel format. The bags
were then sealed and put into a bag for transport to the laboratory. When the rock was soft
enough, a knife was used.

No field duplicates, blanks nor standards were added to the batch of surface and
underground channel samples considering the small amount of samples and considering the
fact that the area was not well known for the moment.

Geostat Systems International Inc. 40


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 41

Laboratory Sample Preparation, analysis and security


The next procedures were sent to Geostat by each laboratory in a written format. The
CIMM-Peru laboratory is not certified and their certificates of analysis are not sealed by a
chemist but rather by an engineer. CIMM-Peru follows strict written procedures. The SGS-
Lakefield laboratory is an independent laboratory and is accredited. Each laboratory uses
standards, blanks and certified materials for quality control and quality assurance.

CIMM-Peru Lab preparation


Parameter Detection Limit Methodology
Primary crushing at -1/4"Ty
Preparation
Secondary Crushing at -10#Ty
0.005 g/t to 10 g/t 50g Pb fusion Fire Assay
Au50g
0.01 g/t to 1000 g/t AAS or Gravimetric over 10 g/t

SGS-Lakefield Laboratory
Parameter Reporting Limit Methodology
Met Plant / Control quality assays . not suitable for commercial exchange
Crush up to 4kg of sample to 9 mesh (2mm)
Preparation
Pulverize up to 250g of riffle split sample to 200 mesh (75µm)
Au30g 0.02 g/t 30g Pb fusion Fire Assay, AAS or Gravimetric
Au50g 0.005 g/t 50g Pb fusion Fire Assay, AAS or Gravimetric

Geostat asked that all of the sample rejects and pulps be returned to Rocmec and stored
properly on site or in a secured warehouse next to the site.

Geostat Systems International Inc. 41


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 42

14- Data Verification

Within the framework of our site visit, Geostat carried out an independent sampling
program and an analytical check of the samples.

The objective of this verification was to confirm the presence of gold values in the different
veins on surface and in the drifts. Geostat previously carried out an independent sampling
program of 108 surface channel samples in late 2007 and a total of 12 underground channel
samples in early 2008. Geostat selected all the samples and supervised their extraction.

Previous underground channel sampling was done for Rocmec by Pierre Labrecque eng., an
independent engineer in mid 2007. Some of the underground sampled sites were re-sampled
by Geostat in 2008 in order to confirm the presence of gold.

The 2007 surface channel samples were first sent to CIMM Peru for preparation and gold
analysis. Geostat’s 2008 independent underground channel samples were sent to SGS
Mineral Services Laboratory in Lakefield, Ontario, Canada for preparation and gold analysis.

60 surface 2007 channel samples were assayed for the Ramal vein
39 surface 2007 channel samples were assayed for the Principal vein
12 underground 2008 channel samples were assayed for the Principal vein
14 surface 2007channel samples over the Puma property.

The procedure used can be illustrated as follows:

Geostat Systems International Inc. 42


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 43

Surface/
Underground

Sample taken by P. Sample taken by Geostat in


Labrecque in 2007 2007-2008

Crushing and reduction to Crushing and reduction to


250 g. approx and grinding 250 g. approx and grinding

Surface: Fire assay with AA-


Fire assay 30 g-GRAV
GRAV 50 g CIMM-Peru
CIMM-Peru

Underground: Fire assay


50 g -GRAV. SGS,
Lakefield

Figure 17: Diagram of the analytical checking procedure of the samples

The assay results of the Geostat sampling campaign allowed us to confirm the presence and
the gold content of the selected samples, as well as the integrity of the sample results used in
the Ramal vein and Principal vein resource estimation. We found the results to be adequate.

Geostat Systems International Inc. 43


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 44

15- Adjacent Properties

There are mineral concessions surrounding the Puma mineral concession (property) and are
considered as adjacent properties to the Puma project area within the definition of NI 43-
101. Geostat is not aware of any work being carried out on these adjacent properties.

Figure 18: Adjacent properties to the Puma property

Geostat Systems International Inc. 44


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 45

Mining concessions list of the Arequipa Area, April 16, 2008

Nº Code Name Subst. Title Reference Date Has. State Dept. Prov. Dist.
1 010001301L ACUMULACION CHILI Nº 1 Met. YURA S.A. 2001-05-16 00:00:00 32091.91 Acumulaci¾n D.M. Titulada Arequipa Arequipa Yura
2 010030603 AGUA SALADA Met. JESUS IGNACIO GARCIA GARCIA 2003-02-26 00:00:00 100.00 D.M. Titulado D.L. 708 Arequipa Arequipa Yura
3 050042107 CHACOTE 5 Met. LILLIAN JESUS CADILLO LOPEZ 2007-11-29 00:00:00 100.00 D.M. en tramite D.L. 708 Arequipa Arequipa Vitor

4 050015606 COLIBRI 2006 Met. MARIUS FELIX KARRER WEIBEL 2006-07-20 00:00:00 200.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor

5 050004803 EL PUMA Met. EL PUMA TORCONTA S.C.R.L. 2003-04-07 00:00:00 400.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
6 050004905 EL PUMA 2 Met. EL PUMA TORCONTA S.C.R.L. 2005-04-15 00:00:00 200.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
7 050011906 EL PUMA 3 Met. EL PUMA TORCONTA S.C.R.L. 2006-05-30 00:00:00 400.00 D.M. Ext. Pub.L.D. A·n No Pet. Arequipa Arequipa Vitor

8 050006507 EL PUMA 4 Met. EL PUMA TORCONTA S.C.R.L. 2007-02-15 00:00:00 100.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor

9 050020507 EL TRIUNFO 2007 G Met. NICEFORO CHAVEZ NUÑEZ 2007-06-18 00:00:00 700.00 D.M. en tramite D.L. 708 Arequipa Arequipa Yura
10 050015105 ERICK DEYVIS IV Met. NICOLAS HUAQUISTO OCHOCHOQUE 2005-09-08 00:00:00 100.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
11 050025707 FILI XI Met. JANET JOSEFINA TEJADA CARDENAS 2007-08-01 00:00:00 100.00 D.M. en tramite D.L. 708 Arequipa Arequipa Vitor
12 050025807 FILI XII Met. JANET JOSEFINA TEJADA CARDENAS 2007-08-01 00:00:00 100.00 D.M. en tramite D.L. 708 Arequipa Arequipa Vitor
13 010291206 GLOBAL IRON Met. S.M.R.L. REYNA VICTORIA 2006-07-04 00:00:00 1000.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
14 010038392 GLORIA Met. S.M.R.L. T+S INVERSIONES 1992-10-30 00:00:00 400.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
15 010035802 GLORIA 2002 Met. S.M.R.L. GLORIA 2002 2002-03-07 00:00:00 100.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
16 010094002 GLORIA 2002 Nº1 Met. S.M.R.L. GLORIA 2002 Nº1 2002-06-04 00:00:00 200.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
17 010094102 GLORIA 2002 Nº2 Met. S.M.R.L. GLORIA 2002 Nº1 2002-06-04 00:00:00 100.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
18 010185302 GLORIA 2002 Nº3 Met. S.M.R.L. GLORIA 2002 2002-09-09 00:00:00 200.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
19 010154303 GLORIA 2003 Met. S.M.R.L. GLORIA 2002 2003-05-05 00:00:00 100.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
20 010154206 LA DOÑA 2006 Met. ADOLFO DAYMON RIVERA RIVERA 2006-03-28 00:00:00 400.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
21 010295206 LA DOÑA II 2006 Met. ADOLFO DAYMON RIVERA RIVERA 2006-07-07 00:00:00 300.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor

22 050009004 LA QUINTA Met. MIGUEL ANGEL LOAYZA QUINTANILLA 2004-06-01 00:00:00 500.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor

23 050015506 LA QUINTA 2 Met. MIGUEL ANGEL LOAYZA QUINTANILLA 2006-07-20 00:00:00 300.00 D.M. en tramite D.L. 708 Arequipa Arequipa Vitor
24 010023207 LA QUINTA 2007 Met. MAYRA ALEJANDRA ORTIZ GARCIA 2007-01-03 00:00:00 600.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
25 050004603 LAS GEMELAS I Met. S.M.R.L. LAS GEMELAS I 2003-04-01 00:00:00 100.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
26 050015605 LAZARO UNO Met. MANUEL AGUERO VEGA 2005-09-20 00:00:00 100.00 D.M. Titulado D.L. 708 Arequipa Arequipa Yura
27 010117600 LOREANGELA I No Met. ANGEL BENAVENTE CACERES 2000-05-08 00:00:00 200.00 D.M. Titulado D.L. 708 Arequipa Arequipa Yura
28 050016004 LOREANGELA II No Met. ANGEL BENAVENTE CACERES 2004-11-08 00:00:00 100.00 D.M. en tramite D.L. 708 Arequipa Arequipa Yura
29 050004106 MARIA LUZ I 2006 Met JORGE PEDRO JESUS CARRASCO CASTRO 2006-02-09 00:00:00 700.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
30 050006406 MARIA LUZ II 2006 Met JORGE PEDRO JESUS CARRASCO CASTRO 2006-03-13 00:00:00 100.00 D.M. en tramite D.L. 708 Arequipa Arequipa Vitor
31 01005099X01 MARLUP No Met. RUDY FUENTES CARDENAS 1983-05-02 00:00:00 700.39 D.M. Exting. Cautelar Pod. Jud. Arequipa Arequipa Yura
32 010112905 NUEVA ACAVILLE 3 Met RUFO LORENZO AYMARA CCAPA 2005-05-11 00:00:00 600.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
33 010022507 NUEVA ACAVILLE 5 Met MAYRA ALEJANDRA ORTIZ GARCIA 2007-01-03 00:00:00 100.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
34 050005199 NUEVA ESPERANZA Met MIGUEL ANGEL LOAYZA QUINTANILLA 1999-09-24 00:00:00 200.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
35 050010806 QUILLAMARCA II Met S.M.R.L. QUILLAMARCA II 2006-05-22 00:00:00 200.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
36 050013106 QUILLAMARCA III Met S.M.R.L. QUILLAMARCA III 2006-06-16 00:00:00 100.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
37 050015406 SEDUCTORA Met EMILIO RAMOS VALDIVIA 2006-07-20 00:00:00 100.00 D.M. Titulado D.L. 708 Arequipa Arequipa Yura
38 050010906 SILVIA CESIA I Met AGAPITO VICENTE OROZCO MOREYRA 2006-05-22 00:00:00 200.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
39 010441206 SITA II Met SAI GARUDA ENTERPRISES S.A. 2006-10-18 00:00:00 1000.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
40 010441006 SITA III Met SAI GARUDA ENTERPRISES S.A. 2006-10-18 00:00:00 1000.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
41 010440906 SITA IV Met SAI GARUDA ENTERPRISES S.A. 2006-10-18 00:00:00 1000.00 D.M. Titulado D.L. 708 Arequipa Arequipa Yura
42 010440806 SITA V Met SAI GARUDA ENTERPRISES S.A. 2006-10-18 00:00:00 1000.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
43 010441106 SITA VI Met SAI GARUDA ENTERPRISES S.A. 2006-10-18 00:00:00 1000.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
44 050005507 TONALIA Met DONALD LE ROY STILES 2007-02-09 00:00:00 1000.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
45 050005607 TONALIA 1 Met DONALD LE ROY STILES 2007-02-09 00:00:00 1000.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
46 050005707 TONALIA 2 Met DONALD LE ROY STILES 2007-02-09 00:00:00 1000.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
47 050005807 TONALIA 3 Met DONALD LE ROY STILES 2007-02-09 00:00:00 1000.00 D.M. en tramite D.L. 708 Arequipa Arequipa Vitor
48 050005907 TONALIA 4 Met SOUTH AMERICAN INMOBILIARIA S.A.C. 2007-02-09 00:00:00 1000.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
49 050006007 TONALIA 5 Met DONALD LE ROY STILES 2007-02-09 00:00:00 1000.00 D.M. en tramite D.L. 708 Arequipa Arequipa Vitor
50 050006107 TONALIA 6 Met SOUTH AMERICAN INMOBILIARIA S.A.C. 2007-02-09 00:00:00 1000.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
51 050006207 TONALIA 7 Met SOUTH AMERICAN INMOBILIARIA S.A.C. 2007-02-09 00:00:00 1000.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
52 01005107X01 URBANO 83 Met CIRILO AGUILAR NEYRA 1983-05-10 00:00:00 1000.01 D.M. Titulado D.L. 109 Arequipa Arequipa Yura
53 050006506 VIRGENCITA DE CHAPI Met LUDGERIO ASENCIO REYES 2006-03-22 00:00:00 100.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
54 050008506 YEBACHA 12 Met SOUTH AMERICAN INMOBILIARIA S.A.C. 2006-04-07 00:00:00 1000.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
55 050010606 YEBACHA 13 Met SOUTH AMERICAN INMOBILIARIA S.A.C. 2006-05-16 00:00:00 1000.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
56 050008606 YEBACHA 14 Met SOUTH AMERICAN INMOBILIARIA S.A.C. 2006-04-07 00:00:00 400.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
57 050005706 YEBACHA 2A Met DONALD LE ROY STILES 2006-02-28 00:00:00 997.84 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
58 050003106 YEBACHA 3 Met SOUTH AMERICAN INMOBILIARIA S.A.C. 2006-01-25 00:00:00 1000.81 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
59 050004306 YEBACHA 7 Met DONALD LE ROY STILES 2006-02-13 00:00:00 100.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor
60 050004506 YEBACHA 9 Met DONALD LE ROY STILES 2006-02-13 00:00:00 100.00 D.M. Titulado D.L. 708 Arequipa Arequipa Vitor

Table 4: List of the adjacent properties to the Puma mining concession

Geostat Systems International Inc. 45


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 46

16- Mineral Processing and Metallurgical Testing

To this date, there are no metallurgical tests available. Although small scale mining and
milling is done on the property. Neither Geostat nor Rocmec holds data relevant to Mineral
Processing and Metallurgical Testing.

Geostat Systems International Inc. 46


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 47

17- Mineral Resource and Mineral Reserve Estimates

Definitions
The classification of Mineral Resources and Mineral Reserves used in this report relies with
the definitions provided in National Instrument 43-101, which came into effect in February
1, 2001. We further confirm that we have followed the guidelines adopted by the Council of
the Canadian Institute of Mining Metallurgy and Petroleum. The relevant definitions for the
CIM Standards/Nl43-101 are as follows:

1. Preliminary Feasibility Study


A Preliminary Feasibility Study is a comprehensive study of the viability of a mineral project that has
advanced to a stage where the mining method, in the case of underground mining, or the pit configuration,
in the case of an open pit, has been established, where an effective method of mineral processing has been
determined, and includes a financial analysis based on reasonable assumptions of technical, engineering,
legal, operating, and economic factors and evaluation of other relevant factors which are sufficient for a
Qualified Person, acting reasonably, to determine if all or part of the Mineral Resource may be classified
as a Mineral Reserve.

2. Exploration Information
Exploration information means geological, geophysical, geochemical, sampling, drilling, trenching,
analytical testing, assaying, mineralogical, metallurgical and other similar information concerning a
particular property that is derived from activities undertaken to locate, investigate, define or delineate a
mineral prospect or mineral deposit.
3. Mineral Resource
A Mineral Resource is a concentration or occurrence of natural, solid, inorganic or fossilized organic
material in or on the earth’s crust in such form and quantity and of such a grade or quality that it has
reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and
continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and
knowledge.

4. Inferred Mineral Resource


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

5. Indicated Mineral Resource


An ‘Indicated Mineral Resources is that part of a Mineral Resources for which quantity, grade or
quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient
to allow the appropriate application of technical and economic parameters, to support mine planning and
evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable
exploration and testing information gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade
continuity to be reasonably assumed.

Geostat Systems International Inc. 47


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 48

6. Measured Mineral Resources


A ‘Measured Mineral Resources is that part of a Mineral Resource for which quantity, grade or quality,
densities, shape, and physical characteristics are so well established that they can be estimated with
confidence sufficient to allow the appropriate application of technical and economic parameters, to support
production planning and evaluation of the economic viability of the deposit. The estimate is based on
detailed and reliable exploration, sampling and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely
enough to confirm both geological and grade continuity.

7. Mineral Reserves
A Mineral Reserves is the economically mineable part of a Measured or Indicated Mineral Resource
demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate information
on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of
reporting, that economic extraction can be justified. A Mineral Reserves includes diluting materials and
allowances for losses that may occur when the material is mined.

8. Probable Mineral Reserves


A ‘Probable Mineral Reserves is the economically mineable part of an Indicated, and in some
circumstances a Measured Mineral Resources demonstrated by at least a Preliminary Feasibility Study.
This Study must include adequate information on mining, processing, metallurgical, economic, and other
relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.

9. Proven Mineral Reserves


A ‘Proven Mineral Reserves is the economically mineable part of a Measured Mineral Resources
demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate information
on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of
reporting, that economic extraction is justified.

Database used
Geostat compiled and used the data in a drill hole database. The database management and
validation was done by Geostat. The database includes 4 drill hole collar records, totalling
608.3 metres of NQ size core, 17 assay results and 64 lithology records.

Hole Name Easting Northing Elevation Azimuth Dip Length Hole Type Zone Started Finished Contractor Logged By Description Mining Concesssion District
RSA -30 189815.97 8199655.80 2345.40 42.12 -30 115.95 Diamond Principal Spring 2008 Spring 2008 GEMCO S.A.C. Juan Alvarado Zegarra DATUM:PSAD56 La Quinta Vitor
RSD -20 190074.50 8199588.26 2353.34 357.12 -20 70.30 Diamond Principal Spring 2008 Spring 2008 GEMCO S.A.C. Juan Alvarado Zegarra DATUM:PSAD56 La Quinta Vitor
RSE1 FLAT 189842.32 8199583.85 2310.92 57.12 0 205.00 Diamond Ramal Spring 2008 Spring 2008 GEMCO S.A.C. Juan Alvarado Zegarra DATUM:PSAD56 La Quinta Vitor
RSE2 FLAT 189833.94 8199584.34 2310.83 11.12 0 217.05 Diamond princ. Ram Spring 2008 Spring 2008 GEMCO S.A.C. Juan Alvarado Zegarra DATUM:PSAD56 La Quinta Vitor

Table 5: Database drill hole collar information

All interpretations were done according to the Datum PSAD56, a UTM grid used in Peru.
Drill hole coordinates and direction are in this UTM grid. Drilling was done on different
orientations but following known mineralized structures considering the relative high relief
and limited access.

Geostat Systems International Inc. 48


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 49

All of the vein surface channel samples and channel samples done in the underground
openings were included in the database. Geostat entered and validated the entry. The
location is adequate considering that only a small amount of data on the mine openings
(drifts and adits) have been surveyed in detail. The orientations, lengths and assay results
were included correctly. The database includes 32 Surface channel samples, 30 underground
channel samples totalling 198 assay results.

Geological Interpretation and Modelling


The Puma geological model covers an area of 700 meters long by 375 meters wide by 100
metres vertical. It comprises of 3 known veins: The Ramal, Principale and Pollo veins. In
this report, only the Ramal vein had sufficient available data to support geological modelling
and resource estimation. Nevertheless, both Principal and Pollo veins remain good
exploration targets and their potential to hold resources is non negligible.

Also, The Puma property contains 21 veins and occurrences sampled from the 2008 surface
sampling program. These structures varied from a few meters to 570m in length, from 0.10m
to 1.20m in width (apparent width) and from up to 48.47 g/t Au with an average of 1.94/g/t
Au. In total, 21 veins and occurrences were discovered for a total of 165 samples covering an
area of 20 km2. These veins were not considered for the resource evaluation considering the
small amount, density of available data and there level of confidence.

The geological interpretation of the Puma mineral deposit was done using standard sectional
modelling of 12.5m spacing around the most important parts of the property. Geostat used
its own sectional interpretation and modelling software called SectCAD. This reliable
software was designed and is wholly owned by Geostat. Geostat created the sections with
limited geological interpretations. Geostat took into account the drill hole geological
information of the geologist for its geological interpretation and modelling and incorporated
it into SectCAD. Sections of the Ramal Vein are named using sequential numbering: Ramal-
005 to Ramal-060 with a corridor (thickness) of 5m. Sections were done considering the
general orientation of the structures.

The PUMA property Ramal vein sections are orientated WE looking NW at 320° from the
UTM grid with a thickness corridor of 5 metres. The Anchor point of the Ramal-005 section
is at 189,917mE, 8,199,693mN (PSAD56) centered on a channel sample. These sections
were made to follow the general direction of the Ramal vein.

Available openings, mined out areas and interpreted mineralized zones were included into
the SectCAD software. A 3D mine openings model was made by Geostat from the data
available given by Rocmec. Mined out areas were estimated and taken out of the resource
estimation.

The author used all relevant mineralized intersects from the surface, underground channel
samples and the drill holes available.

Geostat Systems International Inc. 49


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 50

Below is the geological interpretation of the different zones including the Ramal vein,
Principal vein and Pollo Vein taken from Geostat’s SectCAD sectional modelling software.
The colors are according to gold value. See legend in the table below.

Legend
0 to 0.1 Au g/t
0.01 to 1.5 Au g/t
1.5 to 3.0 Au g/t
3.0 to 5.0 Au g/t
5.0 to 10.0 Au g/t
10.0 to 9999 Au g/t

Table 6: Color Legend used in SectCAD

Figure 19: oblique view of the Ramal underground and surface geological
interpretation (SectCAD)

Lines in blue, red and turquoise are the Principlale vein, Ramal vein and access road on
surface respectively.

Geostat Systems International Inc. 50


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 51

Figure 20: geological interpretation of the Pollo vein

Note the difference between the channel samples locations and the underground
workings locations.

This information was left out of the resources estimate.

Geostat Systems International Inc. 51


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 52

Analysis of the gold grade distribution and capping value

Geostat did not carry a detailed grade analysis of the gold values. However it is also
interesting to consider the contribution of the gold contained in the high-grade samples
proportionally to their number in the data set. Geostat used the rule of thumb of one (1)
Troy Ounce per tonne capping value. Geostat considers it adequate considering the small
amount of assay results and the high values present in the database. All of the assay results
exceeding 1 Troy Ounce per tonne were capped to 31.1035 g/t.

Geostat Systems International Inc. 52


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 53

Resource estimation settings

Polygonal Resource Modeling


The resource estimation of the Ramal vein was done using a polygonal resource modelling
software called PolyCAD. This software is a stand alone polygonal 2D modelling tool
designed and owned by Geostat. It is specialized for narrow veins and tabular deposits.

Geostat used a total of 20 mineralized intercepts called composites of the Ramal vein for the
resources estimation.

Geostat established a general orientation of the Ramal vein mineral deposit of 320° and a dip
of 65° (right hand rule) and included it in the resource estimation settings of PolyCAD.

The thickness of every composite was taken in account for the resource estimation with
PolyCAD.

A 2D envelope of 450 m long by 100 m deep was used as the 2D limits of extrapolation of
the Ramal vein mineral deposit.

The topographic relief was considered and included in the resource estimation of the Ramal
vein mineral deposit in PolyCAD. All the portions above the topographic relief along the
projection plane in PolyCAD were not considered in the resource estimation.

A 2D polygonal model was then crated in PolyCAD taking in account all the information
mentioned above.

Topographic relief limit Maximum extent of


the vein
interpretation

X :100m
Y : 2225m
100m

Figure 21: 2D view of the Ramal vein mineral deposit area in PolyCAD

Geostat Systems International Inc. 53


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 54

Specific Gravity
Specific gravity is referred to as density in this text.

Density Determination
Geostat did not carry out any density measurements. Considering the deposit type and the
surrounding rock types, the mineralization and the host rock being mainly quartz, Geostat
used a density of 2.7.

Mined Out Areas


Geostat estimated at 450 tonne at 28.46 g/t Au, for a total of 410 ounces Au, the mined out
areas of the Ramal vein. These mined out areas are included in the measured resources
Estimate. Geostat used a length of 55 m, a height of 2 m, an average thickness of 0.51 m and
a density of 2.7. An imprecision factor of 50% was added to this estimate.

Geostat Systems International Inc. 54


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 55

Resource classification settings

Measured Resources
Only the resources of the Principal vein using the channel samples were considered as
measured resources. The validated location and the visibility of the mineralization in the
mine openings are considered adequate for the classification of the Puma mineral deposit
Principal Vein mineral resources. An area of 12.5 m around the channel sample composites
was considered as measured resources.

Maximum extent
Topographic relief limit of the vein

Maximum
extent of the
estimation

X :100m
Y:
2225m

100m

Figure 22: 2D view of the Ramal vein mineral deposit measured resources in
PolyCAD

Geostat Systems International Inc. 55


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 56

Indicated Resources
Only the resources of the Principal vein using the channel samples were considered as
indicated resources. The validated location and the visibility of the mineralization in the mine
openings are considered adequate for the classification of the Puma mineral deposit Principal
Vein mineral resources. An area of 25 m around the channel sample composites was
considered as indicated resources. The Measured Resources inside the indicated area were
taken out of the indicated resources calculation.

Maximum extent of
the vein
Figure 23: 2D view of the Ramal vein mineral deposit indicated resources
Topographic relief limit interpretation

Measured
resources
Maximum
extent of the
estimation

X :100m
Y : 2225m

100m

Figure 24: 2D view of the Ramal vein mineral deposit indicated resources in
PolyCAD

Geostat Systems International Inc. 56


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 57

Inferred Resources
The inferred resources of the Ramal vein mineral deposit are the total area less the indicated
and measured resources inside the area. The Ramal vein inferred resources are the rest of the
estimated mineral resources of the Ramal vein in PolyCAD. The next figure shows the
maximum extent of the inferred resources of the Ramal vein.

Note: This next figure includes the areas of measured and indicated resources.

Topographic relief limit Maximum extent of


the vein
interpretation

Maximum
extent of the
extrapolation

100 m

Figure 25: 2D view of the Ramal vein mineral deposit resources (all included) in
PolyCAD

Classified Resource estimates


Here are the estimated classified mineral resources of the Puma Property Ramal vein mineral
deposit. Considering the nature of the gold mineralization (nugget effect), the continuity of
the structure at depth, considering the mining method, and the small amount of available
data, the resources were kept undiluted and no cut-off was applied at this stage of the report.
Mined-out areas are included (see section: Resources Estimation Setting).

Classified Resources Tonnage Thickness (m) Au g/t Ounces Au


Measured* 2800 0.51 28.46 2500
Indicated 16300 0.53 29.20 15300
Total (Measured+Indicated) 19100 0.52 29.09 17800
Inferred 27900 0.56 13.63 12200
*: Mined-out areas estimated at 450 t at 28.46g/t Au, 410 oz Au are included in the Measured Resources estimate

Table 7: Puma Property, Ramal Vein Capped Resources, No cut-off applied,


undiluted

Geostat Systems International Inc. 57


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 58

18- Other Relevant Data and Information

The mining method that is considered for extracting Ore from the Puma Mineral Deposit is
called: Thermal fragmentation Mining Method. This mining method is specialized for
narrow rich veins. Since the veins in the Puma mineral deposit are relatively small in width,
this method is considered to be an adequate alternative to conventional mining.

The information below is provided by Rocmec.

Thermal fragmentation Mining Method


A strong burner powered by diesel fuel, is inserted into a 13 - 15 cm pilot hole drilled into
the vein using a conventional drill. The burner spalls the rock, quickly increasing the
diameter of the hole to 30 - 100 cm and producing rock fragments 0 - 13 mm in size. The
leftover rock between fragmented holes is broken loose using soft explosives and a narrow
mining corridor with widths of 30 cm to 1 metre is thus extracted. Since the waste walls are
left intact, the dilution factor and the inefficiencies associated with traditional mining
methods are greatly reduced.

The Burner
The burner is powered by diesel fuel and compressed air and generates temperatures up to
1800°C in the combustion chamber. In the hole, a thermal cushion of hot air is formed
which produces a thermal stress when coming in contact with the rock. A spalling effect
occurs, and the rock is scaled off the hole walls and broken loose by the compressed air.
This technology has been used for over 40 years in large-scale open pit operations for the
enlargement of blast holes.

The Fragmented Rock


The process of fragmenting the rock is optimal in hard, dense rock. The spalling process
produces rock fragments 0 - 13 mm in size. The finely fragmented ore requires no crushing
before entering the circuit of the mill and can be more efficiently transported since it
consumes less space than ore in larger pieces.

Drift Development and Stope Layout


Drift development is performed directly into the ore at intervals of 15 to 20 metres in
accordance with the geology of the ore body. Using a re-suing method, the ore is blasted and
recovered in the first cut then the waste is blasted and hauled away in the second cut.
Following the creation of two sub-level drifts, a pilot hole is drilled between the two levels
and enlarged by way of thermal fragmentation. The unit is designed to operate in a compact
underground environment in a drift or sublevel as small as 1.5 m wide by 2.5 m high. The
unit is designed and manufactured by Kubota and its approximate dimensions are 125 cm
wide, 275 cm long and 165 cm high.

Geostat Systems International Inc. 58


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 59

Ore Extraction: Selective and Continuous


The Thermal Fragmentation Mining Method allows for selective ore extraction; high grade
sections can be prioritised and extracted first. The method extracts a narrow corridor (30 cm
to 1 m wide) leaving waste walls on each side of the mineralised zone intact and minimising
the damage caused to the drift structure. The area mined can be easily rehabilitated using
cables and panels to cover the narrow opening in the hanging wall of the undercut drift.
Mine residue is then used to fill the extracted zone and a cement floor is laid, if needed, on
the footwall of the overcut drift to permit future access. Using this method the stability of
the rock is maintained and access to the ore body is never compromised.
Furthermore, thermal fragmentation is a continuous mining method; it uses no explosives
and is operated in a continuous chain, with one person first drilling a pilot hole, followed by
a second who enlarges it by way of thermal fragmentation.

Mining Ounces not Tonnes


The method produces highly concentrated ore, resulting in 400% - 500% less dilution when
compared to conventional mining methods. The table below compares the quantity of rock
extracted when mining a 50 cm wide vein using the thermal fragmentation mining method as
opposed to a shrinkage mining method.

Tonnage Calculation; Comparing Thermal Fragmentation and Shrinkage Methods

The figure above shows that approximately 4 times less rock needs to be mined for the
equivalent mineralised content. This innovative method of extraction allows mine operators
to solely extract mineralised zones thus significantly reducing dilution factors and as a result,
optimising mine operations.

Geostat Systems International Inc. 59


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 60

Drilling and Fragmenting the Hole

Extracting the Mineralised Corridor in Blocks

Mining Width: 50cm


Total: 1062 Tonnes

Geostat Systems International Inc. 60


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 61

Reducing Environmental Impact


While developing the Thermal Fragmentation Mining Method, important efforts were made
to reduce the environmental effects mine operations have on the surrounding areas. Using
the method, mine development is performed directly into ore resulting in less waste rock
being extracted and displaced into large piles at the surface. By solely extracting the
mineralised zone, only the necessary excavations are made. Four times less rock needs to be
mined for the equivalent mineral content.
As a result of less rock being mined, fewer tonnes need to be processed at the mill to extract
the precious metals. The quantity of chemical agents needed in the process is greatly
reduced. Furthermore, the quantity of energy needed to process the ore is also greatly
diminished since less rock is sent to the mill. The reduced quantity of energy for hauling and
processing the ore results in fewer greenhouse gases being emitted. The mining residue that
remains once the precious metal contents are removed is 4 times less abundant using the
example above, meaning much smaller tailing areas need to be constructed, maintained, and
rehabilitated once mining operations have ceased. The space needed to host the mine site is
greatly reduced, the alterations to the landscape are significantly diminished, and the result is
a cleaner and more responsible approach to mine operations.

Productivity
The work group required to operate 1 thermal fragmentation unit consists of a 2 person
team (1 thermal fragmentation operator, 1 drilling operator). The following table shows the
time needed to extract an ore block using the thermal fragmentation mining method in
comparison to using a shrinkage mining method.

Productivity; Comparing Thermal Fragmentation and Shrinkage Methods

The table above demonstrates that for the equivalent amount of mineral content, it takes
approximately half the time to mine the ore zone using the thermal fragmentation mining
method than when using a shrinkage mining method. Furthermore, since less rock needs to
be mucked, and hauled from the stope, fewer personnel are needed for handling the ore. In
total, we estimate that to extract an equivalent amount of precious metal ounces, the method
reduces the personnel needed for mine operations by 30 - 50% when compared to
conventional mine operations.

Geostat Systems International Inc. 61


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 62

19- Interpretation and Conclusions


The resources and reserves reported in this document are compliant with current standards
as outlined in the National Instrument 43-101.

Geostat confirms that most of the gold content of the database are corroborated by check
analyses and certificates of analysis.

There are no reserves estimated in this report.

The resources estimated by 2D polygonal modeling (see parameters in section above) can be
established as follows for the Puma Property Ramal Vein Mineral Deposit, no cut off
applied, undiluted, *mined-out areas included :

Classified Resources Tonnage Thickness (m) Au g/t Ounces Au


Measured* 2800 0.51 28.46 2500
Indicated 16300 0.53 29.20 15300
Total (Measured+Indicated) 19100 0.52 29.09 17800
Inferred 27900 0.56 13.63 12200
*: Mined-out areas estimated at 450 t at 28.46g/t Au, 410 oz Au are included in the Measured Resources estimate

The resources were limited with the topography and were limited to the envelope of the ore
body

The total estimated measured and indicated resources tonnage is 19,100.00 tonnes at 29.09
g/t Au average with and average thickness of 0.52 metres. For a total of 17,900.00 ounces,
no cut-off applied, undiluted, * mined-out areas included.

The Puma property contains enough resources to justify additional work on the property
that could lead to a feasibility study and the mining of a bulk sample. We consider that it will
be necessary to carry out certain work before or during this suggested study in order to
increase the quality of the resources and the reserves

The Ramal Vein mineral deposit is prioritized for additional work. The possibility of thermal
fragmentation mining method is suited for these kinds of narrow veins through-out the
property since Rocmec is focused on gold extraction with the Thermal Fragmentation
Mining Method specially designed for rich narrow veins such as the mineralized quartz
veins on the Puma property.

The presence of a small scale underground mining operation, the 2008 channel sampling
program and 4 Drill holes permitted to validate the presence of gold content in the narrow
quartz veins on the property mainly the Ramal, Principale and the Pollo vein. The presence

Geostat Systems International Inc. 62


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 63

of the veins in each drill hole permitted to validate the extension on both directions and at
depth. Even though the mineralized intercepts got low gold content.

However, the small amount and the density of reliable data did not permit to estimate with a
good level of confidence, the Principale vein and the Pollo vein. They still remain good
exploration potential since the presence of gold was validated.

To the author’s knowledge, the Puma property contains also good exploration targets for
future gold extraction. A total of 21 veins were sampled during the 2008 surface sampling
program. These veins varied from a few meters to 570m in length, from 0.10m to 1.20m in
width (apparent width) and from up to 48.47 g/t Au with an average of 1.94/g/t Au. In
total, 21 veins and occurrences were discovered for a total of 165 samples covering an area
of 20 km2. All of the veins remain good exploration targets and are open on both directions
and at depth considering the mining method used by Rocmec.

Geostat Systems International Inc. 63


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 64

20- Recommendations

Geostat recommends the continuation of surface exploration and development work on the
Puma property including the Ramal vein mineral deposit. Considering the fact that there is
an active small scale mining operation, this project shows significant potential to evolve as a
gold producer.

Geostat recommends the continuation of exploration and development work on the Pollo
and Principal veins. These projects show the same potential to evolve as a gold producer.

Geostat recommends carrying the proposed additional drilling prior to production decision
for the Principal and Pollo veins.

Geostat recommends underground exploration drilling. However an upgrade of these


openings will be necessary in order to meet Canadian standards. In the same manner, while
all the equipment would be available on site, Geostat recommends to start exploration drifts
and adits along the known and accessible mineralized veins.

In our opinion, the following points will have, to be the subject of more detailed studies:

1. Detailed geological interpretation of the veins through out the property including
structural data by a detailed geological mapping of the area.

2. Carry out a standard specific gravity test on core from the property in order to
define a precise specific gravity of the ore and waste material.

3. Carry out a metallurgical test from a bulk sample in order to confirm the rate of
metallurgical recovery to use in the estimate of the reserves in a prefeasibility
study.

4. Plan a new exploration and in-fill diamond drilling campaign in order to define the
Ramal vein mineral deposit and the Pollo and Principal veins.

5. The gravel access road will need to be upgraded to meet the industry’s standards

Geostat Systems International Inc. 64


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 65

21- References

Vargas V. L. (1970) Geología del Cuadrángulo de Arequipa, Boletín No. 24, Servicio de
Geología y Minería. 64p. Lima, Perú.

Ingemmet, Listado de Derechos Mineros en el Área Solicitada al 16 Abril 2008

Servicio Nacional de Meteorología e Hidrología. (Weather and Hydrological National service


of Peru)

Labrècque, P.C., 2007, Sampling El Puma Mine, Arequipa district, Peru, 15p.

RESUMEN IC-EF-01 REV11 Método de Ensayo Determinación Oro por EF muestras


geoquímicas 2007-12-13.pdf, 2p.

RESUMEN – IC-PMM-01-REV05-CIMMPERU S.A. Método para la preparación mecánica


de muestras geoquímicas (rocas y aires reverso), 2p.

Cartilla Control - STD47.pdf: Control Standard Material Data Sheet, 1p.

Geostat Systems International Inc. 65


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 66

22- Date and Signature Page

This report entitled: «Resource Evaluation of the Puma Property optioned by Rocmec
Mining Inc. Technical Report, June 12ht 2008» was prepared and signed by the author.

Signed
_____________________
Maxime Dupéré, geo.
Geologist
Geostat Systems International Inc.

Blainville, Québec Canada


June 12th, 2008.

Geostat Systems International Inc. 66


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 67

23- Certificate of qualification

1. I, Maxime Dupéré, reside at 14010 Poitras, Mirabel, Québec, Canada, J7N 1K7.

2. I am a graduate from the Université de Montréal, Quebec in 1999 with a B.Sc. in


geology and I have practised my profession continuously since 2001.

3. I am a registered member of the Ordre des Géologues du Québec (#501), and I am


currently employed by Geostat Systems International Inc.

4. I have read the definition of “qualified person” set out in National Instrument 43-
101 (“NI43-101”) and certify that by reason of my education, affiliation with a
professional association, as defined in NI43-101 and past relevant work experience; I
fulfill the requirements to be a “qualified person” for the purpose of NI43-101.

5. I am responsible for entire report entitled: «Resource Evaluation of the Puma


Property optioned by Rocmec Mining Inc. Technical Report, June 12th, 2008».
I have personally visited the site from November 29th to December 3rd 2007 and
from March 25th to the 30th, 2008. I supervised the independent sampling campaign.

6. I certify that there is no circumstance that could interfere with my judgment


regarding the preparation of this technical report.

7. Neither I, nor any affiliated entity of mine, is at present, under an agreement,


arrangement or understanding or expects to become, an insider, associate, affiliated
entity or employee of Rocmec Mining Inc., or any associated or affiliated entities.

8. Neither I, nor any affiliated entity of mine, own directly or indirectly, nor expect to
receive, any interest in the properties or securities of Rocmec Mining Inc., or any
associated or affiliated companies.

9. I have read NI 43-101 and Form 43-101F1 and have prepared the report entitled:
«Resource Evaluation of the Puma Property optioned by Rocmec Mining Inc.
Technical Report, June 12th, 2008». In compliance with NI 43-101 and Form 43-
101F1.

10. To the best of my knowledge, information and belief, and, as of the date of this
certificate, this technical report contains all scientific and technical information that
is required to be disclosed to make this technical not misleading.

Signed at Blainville, Québec this 12th day of June 2008.

Signed

Maxime Dupéré, geo.

Geostat Systems International Inc. 67


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 68

Appendix 1: Mining contract

Geostat Systems International Inc. 68


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 69

Geostat Systems International Inc. 69


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 70

Geostat Systems International Inc. 70


Resource Evaluation, Puma Property, Rocmec Mining Inc. Technical Report Page 71

Appendix 2: Project Data

Geostat Systems International Inc. 71

You might also like