October 04, 2022

FOR: HUMPHREY BENITEZ

EXPA-000197-VII Owner

FROM: JULIUS Z. MIEL

Geologist

SUBJECT: RAPID GEOLOGICAL ASSESSMENT OF EXPA -197 OF MR. HUMPHREY BENITEZ

REMARKS:

A rapid geological assessment of the mining claims of Mr. Humphrey Benitez was
undertaken by the undersigned geologist upon the request of Doctor Gaye Yapha and
Mr. Benitez. The purpose of the work is to determine the presence and extent of silica
and limestone, as cement raw materials, and other minerals and if possible, compute
the geological resource of the above-mentioned minerals. Mr. Benitez filed with the
Mines and Geosciences Bureau Regional Office No. 7 an Exploration Permit Application
(EXPA) denominated as EXPA – 000197=VII located in City of Toledo and Municipality of
Pinamungajan, Cebu Province with the total area of 1,569.1134 hectares (Figure 1).

2 3

Figure 1. EXPA 000197 of Mr. Benitez

 The work concentrated in the southern portion of the claim area comprising of
three (3) blocks with the total of 243 hectares (Block 1, 2, 3). This area is situated within
geographic coordinates North Latitude 10°15’00” to 10°16’00” and East Longitude
123°35’00” to 123°36’00”. Twenty observation point were generated and all data were
plotted on a 1: 10,000 scale topographic map.

OBSERVATION POINT
Point north Latitude East Longitude Remarks
1 10°14'50" 123°35'50 limestone
2 10°15'04" 123°35'34 limestone
3 10°15'00" 123°35'31 limestone
4 10°14'58" 123°35'30 limestone
5 10°14'48" 123°35'30 silica
6 10°14'54" 123°35'28 silica
7 10°15'11" 123°35'20 silica
8 10°15'12" 123°35'20 silica
9 10°14'08" 123°35'30 limestone
10 10°11'01" 123°35'31 limestone
11 10°15'01" 123°35'31 limestone
12 10°15'04" 123°35'31 silica
13 10°14'49" 123°35'25 Observation pt
14 10°14'28" 123°34'27 road
15 10°15'02" 123°35'23 road
16 10°14'08" 123°34'08 Observation pt
17 10°15'12" 123°35'21 silica
18 10°15'13" 123°35'20 road
19 10°15'13" 123°35'25 silica
20 10°15'22" 123°35'11 silica
21 10°15'22" 123°35'13 silica
Table 1. Data base

The area is underlain by two lithologic units namely the limestone of the Carcar
Formation and the alluvial deposits of the Quaternary Alluvium in which the silica
occurs. The limestone is coralline, hard and buff to dirty white with tinges of reddish to
orange discoloration. This is one of the major components in the manufacturing of
cement. On the other hand, the Quaternary Alluvium is composed of detrital sediment,
mostly sand and gravel deposited on the low-lying areas, coastal site and river bank.
The Silica deposit is composed of siliceous sediment derived from the weathering of
silica bearing rock in the area. Megascopic analysis of the silica sand shows of a
cryptocrystalline quartz with some iron oxide components (Figure 2)

.
1
 1

2 3

Figure 2. Geologic map of the three Blocks

The silica deposits occur in block 1 and 2 while most of the limestone underlain
block no. 3. The silica can be observed in the AC mining area (Figure 3) located in
middle southern portion of block number 2. These deposits extend northwestward and
northward as observed by the undersigned. The deposit also extends southward into
the plant properties of Century Peak Cement Plant. Thickness of the deposits as seen in
the AC quarry area ranges from 5 to 10 meters. Limestone occupied block three of the
mining claim. It occurs as massive, hard limestone. It has an average thickness of about
50 to 70 meters.

Figure 3. Map showing the location of observation points

 Figure 4. Location of the EXPA and AC Mining site in relation
to Century Peak Cement Plant

CONCLUSION:

The three (3) blocks of the EXPA -000197 of Humphrey Benitez assessed by the
undersigned geologist is underlain by two lithologic Units namely the Limestone of the
Carcar Formation and the Silica Deposit belonging to the Quaternary Alluvium. The
limestone occupies block 3 while the silica deposits occur in Block 1 and 2. Silica
samples were taken and analyzed megascopically and found out to contain mostly
cryptocrystalline quartz sand. It occupies approximately 70 to 120 hectares of land.
Limestone mostly occupies the whole block no 3.

COMPUTATION OF RESOURCES:

In computing the Geologic Resource in the area, the following assumed data are used:
FOR SILICA SAND RESOURCE:
AVERAGE AREA: 70 HECTARES
ASSUMED THICKNESS OF THE DEPOSIT: 5 METERS
1 hectares= 10,000 square meters
Specific Gravity of silica sand = 1.8
TOTAL RESOURCES: 70 X 10,000 X 5 X 1.8
= 700,000 sq. meters X 5 meters 1.8
= 6,300,000 metric tons
FOR LIMESTONE:
A AVERAGE AREA: 50 HECTARES
ASSUMED THICKNESS OF THE DEPOSIT: 50 METERS
1 hectares= 10,000 square meters
Specific Gravity of limestone = 1.6
TOTAL RESOURCES: 50 X 10,000 X 10 X 1.6
= 500,000 sq. meters X 0 meters 1.6
= 8,000,000 metric tons

VALUE COMPUTATION OF THE RESOURCE:

FOR SILICA:
Assumed 50% is minable
6,300,000 x 0.50 = 3,150,000.00
COMPUTED RESOURCE: 3,150,000 metric tons
Selling Price: Php 300.00/Ton
Production Cost: assumed 50 percent of the gross value of the product
Gross value with production cost
=php3,150,000 x 300
=Php945,000,000.00 x.50
=Php472,500,000

FOR LIMESTONE:
Assumed 50% is minable
8,000,000 x 0.50= 4,000,000 MT
COMPUTED RESOURCE: 4,000,000 metric tons
Selling Price: Php 150.00/Ton
Gross Product: 4,00,000,000 x150
= Php 600,000,000
Production Cost: assumed 50 percent of the gross value of the product
Gross value with production cost
=Php600,000,000.00 x.50
=Php300,000,000

JULIUS Z. MIEL
Geologist
PRC No. 0001024