Minera Spence

Competent Persons Peer Review

Spence Mineral Resource
June 2007 Declaration
15 December 2006 – Santiago - Martin Williams
Spence Project
District Geology

Deposit area is
completely covered
by Tertiary and
Quaternary gravels

Ultimate Pit Limit

Property Boundary

Salar de Pampa Lina

 7482500
7482500
473500 474000 474500 475000 475500 476000

Spence Geology
Cover Geology 180

7482000
7482000
160
Thicknesses of Sedimentary Cover in Area of Pit:
140
– North ~100 meters
– Central

7481500
7481500
~70 meters 120

– South ~40 meters 100

• 3 facies of gravels identified (NG1-3)
– NG1: Clast and matrix supported. Weak sulphate 80

Northing (UTM-PSAD56)

7481000
7481000
cements development – least consolidated, most 60
stratified
40
– NG2: Matrix supported + sulphate cements
– NG3: Regalith/colluvium layer with extensive

7480500
7480500
20

sulphate and carbonate cements – most 0

consolidated
• Clay bearing horizon (NAr)

7480000
7480000
• Sedimentary breccia horizon (SBr)

7479500
7479500

7479000
7479000

7478500
7478500

473500 474000 474500 475000 475500 476000

Easting (UTM-PSAD56)
 7482500

7482500
473500 474000 474500 475000 475500 476000

Spence Geology
Structural Evaluation
1700

7482000
1690

7482000
1680

• No significant advance with 1670

Structural model to date

1660
1650

7481500

7481500
1640
• Current model is derived from 1630

bedrock topography and some drill 1620

1610
intersections

Northing (UTM-PSAD56)
7481000

7481000
1600
1590
• NS to NNE bounding faults elevate 1580

porphyry body as a horst block 1570

7480500

7480500
1560

• WNW faults with normal and 1550

1540
sinistral (?) strike-slip component

7480000

7480000
• Interaction with supergene
processes is not well established at
present
7479500

7479500
• Advancing with data capture:
– Bench mapping
7479000

7479000
– Sirovision or similar ?
– Downhole logging tools
7478500

7478500
– I-Site implementation
473500 474000 474500 475000 475500 476000

Easting (UTM-PSAD56)
 Spence Geology
Lithology
• Wall rock unit – Indifferentiated volcano-
Lithology Abbr. DH Code Group Mod Geol. Mod Block
No informacion -99 -99 -99 na na
sedimentary unit Indifferentiated Volc-
IND 10
WR 10 10
Sediment
• Two quartz monzonite porphyry intrusives Sedimentary Units SED 11

(QFP1 and QFP2) Quartz Feldspar Porphyry 1 QFP1 20 QFP1 20 20

• Breccias - hydrothermal and igneous types Quartz Feldspar Porphyry 2 QFP2 21 QFP2 21 21

developed – do not significantly control Cu Felspar Porphyry (late) FP 22 FP na na

mineralisation in Supergene and Oxide volume Instrusive Breccia 1 (QFP1) ABX1 30 with QFP1? na na

• Cover units of gravels, tuffs, and laccustrine Instrusive Breccia 2 (QFP2) ABX2 31 with QFP2? 23 23

deposits
Instrusive Breccia 3 (FP) ABX3 32 with FP? na na
Breccia Hydrotermal BRXH 32 BRXH 32 32
Sedimentary Breccia SBR 40 SBR 40 40
• Interpretation on EW and NS sections, 15m Gravels GRAV 41 GRAV 41 41

benches Clay Horizon

Undiff. Cover
AR
COV
42
43
AR
COV
42
na
42
na

June 2006 Geological Model QFP1

Volume in Pit Phase 1 LOM

IND 44.4% 68.6%
QFP1 36.1% 21.4%
QFP2 12.4% 6.4%
QFP2
ABX2 6.4% 2.8%

500 m Reference Grid

Spence Geology
Alteration
Spence Alteration is Typical of Porphyry Copper Systems:
Magmatic:
– Potassic (secondary biotite, K-feldspar, magnetite, quartz) and Propylitic (chlorite, epidote, pyrite)
Hydrothermal:
– Phyllic (quartz, sericite (muscovite), hydrothermal alunite, pyrite). Local restricted hydrothermal
tourmalinisation developed. No significant advanced argillic zones identified
Supergene:
– Argillic: kaolinite, lesser illite, minor smectite (montmorillonite)
Illite and smectite clays are mostly restricted to the leach cap and oxide interval
and lateral to the mineralisation. In both oxide and sulphide feed material the
proportion of kaolinite to illite/smectite increases broadly with depth.
–Coding system for alteration involves a hierarchy for drilling and modelling
–Interpretation on EW and NS sections, 15m benches
–Need to separate high Quartz QS and high Sericite QS for clays and fines

10 Argillic (A) 30 Chloritic (CL) 41 Potassic (Kf)

20 Phyllic (QS) 40 Potassic (Kb) 50 Propylitic (P)
 Spence Geology
Mineral Types - Definitions
Mod Mod
Mineral Type Abbr. DH Code Group Observations
Geol. Block
No informacion -99 -99 -99 na na No information
Leach Cap LIX 10 LIX 10 10 No Cu mineralisation visible, OxFe, CuT<0.1%
No OxCu blue/green mineralisation visible, OxFe,
Copper Oxides (Brown) OXC 21 OXC na 10 CuT>0.1%. Interval has CuWad, live limonite,

Copper Oxides
Neoctocite, etc
Blue/green OxCu minerals (Ata, Broc, Crys etc.),
>90%
(Green/Blue)
OXV 22 OXV 20 20
OxFe, may have brown OxCu Atacamite
OxCu blue/green/(brown) mineralisation, OxFe, Cu
Copper Oxides with Divide by sulphides. Partial oxidation of SUCC/CV assemblage
Sulphides
OXS 23
CuS/CuT
20 20
to OXCu. Interval to be divided by CuS/CuT in Cu2Cl(OH)3
modelling
Exotica in Gravels EXGRAV 24 EXGRAV 20 24 Exotic OxCu mineralisation in gravels.
Cc>80% of Cu Sulphs by Vol., Cc~>0.3% Vol.,
SUCC (30) 30 SUCC (30) 30 30 Cp<20% Cu Sulps by Vol., grade ~>0.2% CuT. May
Supergene Sulphides
have trace OxFe locally
split into Cc and Cv
(Cv+Cc)>80% of CuSulp by Vol., Cc<80% CuSulp by
dominated
SUCV (40) 40 SUCV (40) 40 40 Vol., (Cv+Cc)>0.3% Vol., grade ~>0.2% CuT. May
have trace OxFe locally

transition from SUCC/CV to HYP, (Cc+Cv)<80% of

Transitional Sulphides STCP 50 STCP 40 50 CuSulp by Vol., 20%<Cp<80% of CuSulp by Vol.,
(Cc+Cv)~>0.3% Vol..

Hypogene with Cpy + Cp>80% of CuSulp by Vol., (Cc+Cv)<20% CuSulp by

HYP1 61 HYP1 na 60
Py Vol., grade ~>0.1% CuT.
Py plus (Cc+Cv)<0.3% Vol. and grade ~<0.2%. Trace
Hypogene with Py only HYP2 62 HYP2 na 60
Cp
Non Mineralised No mineralisation, interval meteorised, no evidence for
NMW 71 NMW na 10
Weathered leaching of sulphides
No mineralisation, no evidence for supergene
Non Mineralised Fresh NMF 72 NMF na 60
weathering
 Spence Geology
Mineral Types - Definitions
Copper Source Percent - SPRD-0110
0 0.5 1 1.5 2 2.5 3

105.5 OXV: Blue/green OxCu minerals

111.5 (Ata, Broc, Crys etc.), OxFe, may
have brown OxCu. CuS/CuT >0.5 Oxide
117.5
Heap
123.5 OXS : Blue/green copper Feed
mineralisation, OxFe, plus Cu
129.5
sulphides. CuS/CuT <0.5
135.5

141.5

147.5 SUCC: Cc>80% of Cu Sulp by

Vol. & Cc~>0.3% Vol. Sulphide
153.5
Depth (Meters)

159.5 SUCV: Cc<80% of Cu Sulp by Vol Heap

& (Cc+Cv)>80% of Cu Sulp by Feed
165.5
Vol, (Cc+Cv)~>0.3% Vol.
171.5

177.5

183.5 STCP: (Cc+Cv) <80% of Cu Sulp

ROM
189.5
by Vol (20% <Cp<80%) of Cu
1.0

Sulp by Vol, (Cc+Cv) ~>0.3% Vol Feed

195.5
0.9

CSP-cc (%)
201.5 CSP-cv (%)
0.8

CSP-cp (%)
207.5 HYP: Cp>80% of Cu Sulp by Vol
CuT (%)
0.7

213.5 CuS (%)

219.5
CuS/CuT
0.6

0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0
0.5
 Spence Geology - June 2006 Model
Mineral Types – East West Section
Phase 1 Pit Shell Top of Bedrock (topography not shown)

Acid Heap Leach

(Oxide Resource)

Acid Heap Leach - SUCC Acid Heap Leach - SUCV

Dump Leach (ROM) -
(Supergene Sulphide Resource) (Supergene Sulphide Resource)
STCP
(Transitional Sulphide
Hypogene Resource)
Mineralisation
(??????????)

Oxide Volume
Sectional EW,
Top of Sulphides
NS 50m and
~100m Bench 15m Top of Transitional Sulphides
Interpretation
(Vertical grid = 25m) Top of Hypogene Sulphides
 Lithology
7,479,365
Spence Geology North

Section 7,479,365
GRAV CLAY

SBR

WR

QFP1 250m
QFP2
250m
ABX2 West East

Alteration
7,479,365
500m
N North

QS

PR
Phase 2
K 250m
Phase 3
CL
Phase 1 250m
Null West East

Mintype
7,479,365
North

LIX

OXI

SUCC

SUCV 250m
STCP
250m
HYP West East
 Spence Geology
Bench 1610m
Lithology Mintype
500m 500m
1610 m N 1612.5
1610 mm N

GRAV LIX

SBR OXI
Phase 2 Phase 2
WR SUCC
Phase 3 Phase 3
QFP1 SUCV

Phase 1 Phase 1
QFP2 STCP

ABX2 HYP

Alteration
500m Lithology
1612.5
1610 mm N 1610m

QS

A
Phase 2
PR
Phase 3
K

CL Phase 1

Null