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  • 1. 43-101 TECHNICAL REPORT ON THE MINERAL RESOURCE ESTIMATE FOR THE AGATA NORTH NICKEL LATERITE PROJECT OF MINDORO RESOURCES LTD. AGATA PROJECT AGUSAN DEL NORTE PROVINCE, PHILIPPINES FOR MINDORO RESOURCES LIMITED SUITE 104, 17707 – 105 AVENUE, EDMONTON, ALBERTA T5S 1T1 CANADA 22nd January, 2009 DALLAS M. COX, BE (MIN) 52 SOMERVILLE STREET BENDIGO VICTORIA, AUSTRALIA 3550
  • 2. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project TABLE OF CONTENTS3.0 SUMMARY ................................................................................................................................................ 64.0 INTRODUCTION ....................................................................................................................................... 75.0 RELIANCE ON OTHER EXPERTS .......................................................................................................... 86.0 PROPERTY DESCRIPTION AND LOCATION ....................................................................................... 9 6.1 Location ................................................................................................................................................ 9 6.2 Property Description: .......................................................................................................................... 10 6.2.1 Tenement Type: ..................................................................................................................... 137.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE andPHYSIOGRAPHY ........................................................................................................................................... 14 7.1 Accessibility:....................................................................................................................................... 14 7.2 Climate: ............................................................................................................................................... 16 7.3 Local Resources and Infrastructure:.................................................................................................... 16 7.4 Physiography:...................................................................................................................................... 168.0 HISTORY .................................................................................................................................................. 179.0 GEOLOGICAL SETTING ........................................................................................................................ 18 9.1 Regional Geology ............................................................................................................................... 18 9.2 Local Geology of Agata Project Area ................................................................................................. 19 9.2.1 Greenschist (Cretaceous) ....................................................................................................... 19 9.2.2 Ultramafics (Cretaceous) ....................................................................................................... 19 9.2.3 Limestone (Upper Eocene) .................................................................................................... 21 9.2.4 Andesite and Tuff................................................................................................................... 21 9.2.5 Intrusives (Upper Oligocene to Lower Miocene) .................................................................. 21 9.2.6 Limestone (Lower Miocene) .................................................................................................. 21 9.2.7 Recent Alluvium .................................................................................................................... 21 9.3 Geology of the ANLP Area................................................................................................................. 2210.0 DEPOSIT TYPES ............................................................................................................................... 2211.0 MINERALIZATION .......................................................................................................................... 26 11.1 Agata Nickel Laterite Project .............................................................................................................. 2612.0 EXPLORATION ................................................................................................................................. 29 12.1 MRL Exploration (1997-2000) ........................................................................................................... 31 12.2 MRL Exploration (2004-2006, and 2008) .......................................................................................... 3213.0 DRILLING .......................................................................................................................................... 41 13.1 Exploration Targets: ............................................................................................................................ 41 13.2 Drilling Phases: ................................................................................................................................... 41 13.3 Drilling Contractors: ........................................................................................................................... 42 13.4 Drilling Rates: ..................................................................................................................................... 42 13.5 Drillhole Collars Survey ..................................................................................................................... 44 13.6 Drilling Results ................................................................................................................................... 4414.0 SAMPLING METHOD AND APPROACH ...................................................................................... 46 ii
  • 3. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project15.0 SAMPLE PREPARATION, SECURITY AND ANALYSES ........................................................... 47 15.1 MRL Protocols .................................................................................................................................... 47 15.1.1 MRL Core Sampling .............................................................................................................. 47 15.1.2 Rechecking of Laboratory Results ......................................................................................... 49 15.2 Laboratory Protocols ........................................................................................................................... 51 15.2.1 McPhar Geoservices (Phil.), Inc. ........................................................................................... 51 15.2.2 Intertek Testing Services Phils., Inc. ...................................................................................... 53 15.3 Results of Internal Check Assays (McPhar and Intertek) ................................................................... 54 15.4 Results of External Check Assays (MRL) .......................................................................................... 56 15.4.1 Nickel Standards .................................................................................................................... 56 15.4.2 Field Duplicates ..................................................................................................................... 58 15.4.3 Coarse Rejects ........................................................................................................................ 60 15.4.4 Pulp Rejects Analyzed by Primary Laboratory...................................................................... 62 15.4.5 Pulp Rejects Analyzed by Umpire Laboratory ...................................................................... 6416.0 DATA VERIFICATION..................................................................................................................... 6617.0 ADJACENT PROPERTIES ............................................................................................................... 67 17.1 Tapian-San Francisco Property: .......................................................................................................... 68 17.1.1 Gold Hill [C5] ........................................................................................................................ 68 17.1.2 Cantikoy (C6)......................................................................................................................... 68 17.1.3 Canaga (C9) ........................................................................................................................... 68 17.1.4 Waterfalls (C1)....................................................................................................................... 69 17.2 Tapian Main Property ......................................................................................................................... 69 17.3 Tapian Extension................................................................................................................................. 70 17.3.1 Bolobolo ................................................................................................................................. 70 17.4 Other Nickel Laterite Prospects: ......................................................................................................... 7018.0 MINERAL PROCESSING AND METALLURGICAL TESTING ................................................... 7119.0 MINERAL RESOURCE ESTIMATE ................................................................................................ 71 19.1 Data Set: .............................................................................................................................................. 71 19.2 Raw Assay Statistics: .......................................................................................................................... 72 19.3 Compositing: ....................................................................................................................................... 73 19.4 Surfaces and Domains:........................................................................................................................ 78 19.5 Data Manipulation: ............................................................................................................................. 80 19.6 Specific Gravity, Bulk Density and Moisture Content: ...................................................................... 80 19.7 Block Modelling and Grade Estimation:............................................................................................. 8120.0 OTHER RELEVANT DATA AND INFORMATION ....................................................................... 8421.0 INTERPRETATION AND CONCLUSIONS .................................................................................... 8422.0 RECOMMENDATIONS .................................................................................................................... 8423.0 REFERENCES.................................................................................................................................... 8624.0 DATE AND SIGNATURES............................................................................................................... 8925.0 ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENTPROPERTIES & PRODUCTION PROPERTIES ........................................................................................... 9126.0 ILLUSTRATIONS.............................................................................................................................. 91  iii
  • 4. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project LIST OF FIGURESFigure 1:  Philippine Map showing location of MRL projects ............................................................... 9 Figure 2:  MRL Tenements and Projects in the Surigao Mineral District ............................................ 15 Figure 3:  Geologic Map of Surigao Mineral District........................................................................... 20 Figure 4:  Agata Geologic Map ............................................................................................................ 23 Figure 5:  Agata Compilation ............................................................................................................... 25 Figure 6:  Idealized Model of spatial relationship between nickel laterite and porphyry targets. ........ 25 Figure 7:  Compilation Map Showing areas of Mapped Nickel Laterite Mineralization ..................... 27 Figure.8:  Agata Projects Map showing areas of Nickel Laterite Mineralization................................. 29 Figure 9:  Cross section Line 10100N Linegraph. ................................................................................ 30 Figure 10:  Agata Soil (Gold) Map ..................................................................................................... 34 Figure 11:  Agata Soil (Copper) Map ................................................................................................. 35 Figure 12:  Agata Soil (Zinc) Map...................................................................................................... 36 Figure 13:  Agata Rock Geochemistry Map ....................................................................................... 37 Figure 14:  Agata Ground Magnetic Survey Map .............................................................................. 38 Figure 15:  Agata Chargeability @ L=7 ............................................................................................. 39 Figure 16:  Agata Resistivity @ L=7 .................................................................................................. 40 Figure 17:  ANLP Drillhole Location Map ........................................................................................ 43 Figure 18:  Cross Section Line 10100N showing grades and thickness of laterite horizon ............... 45 Figure 19:  Flowchart of Mcphar’s Sample Preparation for Laterite.................................................. 52 Figure 20:  McPhar’s Laterite Analysis Procedure Flowsheet ........................................................... 52 Figure 21:  Intertek’s Sample Preparation Procedure for Laterite ...................................................... 53 Figure 22:  Graphs of Laboratory Internal Recheck Assays ............................................................... 54 Figure 23:  Graphs of Laboratory Internal Split Sample Analysis ..................................................... 55 Figure 24:  Graphs of Nickel Standards.............................................................................................. 57 Figure 25:  Graphs of Field Duplicate Assays .................................................................................... 59 Figure 26:  Graphs of Coarse Duplicate Assays ................................................................................. 61 Figure 27:  Graphs of Pulp Rejects analyzed by Primary Laboratory ................................................ 63 Figure 28:  Graphs of Pulp Rejects Analyzed by Umpire Laboratory ................................................ 65 Figure 29:  Comparison of Independent Checks and MRL Assays .................................................... 67 Figure 30:  Tapian-San Francisco Compilation .................................................................................. 69 Figure 31:  Tapian Main Compilation Map ........................................................................................ 71 Figure 32:  Domain Surfaces and Composite Coding ........................................................................ 79 Figure 33:  Agata North Test Pit Location Map ................................................................................. 81 Figure 34:  Block Model Configuration ............................................................................................. 81 Figure 35:  Block Model Cross Section (N1027590) ......................................................................... 82 Figure 36:  Block Model Classification .............................................................................................. 83  LIST OF TABLESTable 1:  Agata Projects Tenements held by Mindoro: ....................................................................... 10 Table 2:  Original Mining Application Claims under MPSA 134-99-XIII ......................................... 11 Table 3:  Climatological Normals and Extremes 1961-2000 .............................................................. 16 Table 4:  Average Grades of Nickel Laterite Horizons ....................................................................... 29 Table 5:  Drilling Rates ....................................................................................................................... 42 Table 6:  NAMRIA Tie Points Technical Description ........................................................................ 44 Table 7:  Average Grades of Laterite Horizons at Line 10100N......................................................... 44 Table 8:  List of Sampling Intervals .................................................................................................... 46 Table 9:  Core Recovery Percentages.................................................................................................. 47 Table 10:  Numbers of Core, Reference and Recheck Samples Analyzed ............................................ 50 Table 11:  Frequency of Check Sampling per Laterite Zone ................................................................ 51 Table 12:  Frequency of Using Nickel Reference Materials ................................................................. 51  iv
  • 5. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectTable 13:  Relationship of Original and Repeat Analyses..................................................................... 54 Table 14:  Relationship of Field Duplicate and Original Assays .......................................................... 59 Table 15:  Relationship of Coarse Rejects and Original Assays ........................................................... 61 Table 16:  Results of Independent Check on Drill Core Assays ........................................................... 66 Table 17:  Data Set ................................................................................................................................ 72 Table 18:  Drillhole Summary ............................................................................................................... 72 Table 19:  Raw Assay Statistics ............................................................................................................ 73 Table 20:  Compositing Data................................................................................................................. 74 Table 21:  Frequency Distribution Plots Ni% ....................................................................................... 75 Table 22:  Cumulative Probability Plots Ni% ....................................................................................... 76 Table 23:  Limonite Composite Statistics ............................................................................................. 77 Table 24:  Saprolite Composite Statistics.............................................................................................. 78 Table 25:  Domain Coding .................................................................................................................... 79 Table 26:  Specific Gravity Parameters ................................................................................................. 80 Table 27:  Mineral Resource Classification .......................................................................................... 83 Table 28:  Mineral Resource Estimation by Classification ................................................................... 84 Table 29:  Summary of Resource: Combined Limonite and Saprolite.................................................. 85  LIST OF APPENDICESAppendix 1: Notice of Relinquishment of portion of MPSA 134-99-XIIIAppendix 2: Certified Technical Descriptions of NAMRIA StationsAppendix 3: Cross Sections Showing Grades and Thickness of Laterite HorizonsAppendix 4: ANLP QAQC ProceduresNote: The cover photo is a snapshot of the GoogleEarth image of the Agata Projects area. v
  • 6. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project3.0 SUMMARYThis report was prepared at the request of Mindoro Resources Ltd. [Mindoro]. This is the third mineralresource estimate completed for the Agata North Laterite Project (ANLP). ANLP is located about 47km north-northwest of Butuan City and 73 km southwest of Surigao City. It lies within themunicipalities of Tubay, Santiago; and Jabonga, all in the province of Agusan del Norte, Philippines.This report discloses the updated results of the mineral resource estimation which were based on severalphases of drilling which were completed in late 2008. It also describes the exploration activities carriedout by MRL Gold Phils. Inc. (MRL) on its Agata Project. MRL is a wholly-owned subsidiary ofMindoro.The ANLP is one of the projects located within the overall Agata Project, which is covered by theMineral Production Sharing Agreement (MPSA) Contract Area held by Minimax Mineral ExplorationCorp. (Minimax) denominated as MPSA-134-99-XIII and approved by the Department of Environmentand Natural Resources (DENR) on May 26, 1999.The project was explored under a Memorandum of Agreement (MOA) between Mindoro and MinimaxMineral Exploration Corporation (Minimax). Mindoro subsequently executed a Deed of Assignmentwhereby it assigned all its rights under the MOA to MRL. By virtue of this, MRL has earned a 75%interest in all the Surigao projects (except the Mat-I Project) including the Agata Project. Minimax hasalso granted MRL an option to acquire an additional 25% direct and indirect participating interest in anyproject within the Agata Project which is brought to the feasibility stage.The Agata Project is situated along the southern part of the uplifted and fault-bounded Western Rangeon the northern end of the east Mindanao Ridge. Greenschists; ultramafics; limestones; andesite andtuff; younger limestones; intrusives; and alluvium underlie the area. The widespread occurrence ofultramafics and serpentinized ultramafics are a favorable environment for the development of nickellaterites along the broad ridges characterized by peneplaned topography.The laterite profile in the ANLP consists of the ferruginous laterite, limonite and saprolite zones orhorizons, and the saprolitic rock, from surface to increasing depth. The limonite zone ischaracteristically iron oxide-rich, where the predominant minerals are hematite, goethite and clays, andwith moderate nickel content (over 1%), while the saprolite zone has much less iron-oxide, ismagnesium-rich, and has a slightly higher nickel content than the limonite horizon.This report is based on the data that were produced and compiled by MRL. Data verification performedby the author found no discrepancies. Hence the database is considered adequate to meet industrystandards to estimate mineral resources.The assay data were collected from drilling activities in the area from February 2007 to September2008, including the BHP Billiton drilling results from a program in 2006. A total of 408 drill holes,comprising 7300.83 meters of diamond drill core and 7271 assay samples, were used for the estimate.The MineSight ® IDW Interpolation procedure was used to interpolate nickel, cobalt, iron andphosphorous grades. Inverse Distance Weighting (IDW) Power 2 was used for grade estimation. Thismethod is considered acceptable given the tight constraints applied to limonite and saprolitedomaining. Grades were interpolated in limonite and saprolite domains only. Raw Assay data wereanalyzed above a cut-off grade of 0.5 Ni% for the limonite, and 0.8 Ni% for the saprolite.Generally, nickel grades in the limonite horizon, increase and peak at a point about the base of thelimonite. Nickel grades remain respectively high and thereafter diminish as the mineralization gradesinto basement/bedrock. Unfolding to this surface ensures that nickel grades in both limonite and 6
  • 7. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Projectsaprolite are preferentially honored in the mid-section of the laterite profile, which represents a greaterproportion (50+%) of the body.Resource classification methodology for limonite was based on the spacing as denoted in Table 27.Planar and elevation search ellipses for saprolite were reduced by 1/2 to 1/3 of the limonite searchellipse parameters given the undulating saprolite/bedrock contact and laterally more erratic nature ofmetal grades in the saprolite domain.The estimate for combined Measured and Indicated Resources is 13.17 million wet metric tonnes(WMT), or 9.26 million dry metric tonnes (DMT), grading 1.13 percent nickel, 0.078 percent cobalt and30.93 percent iron. In addition, the Inferred Resource estimate is 18.1 million WMT, or 12.7 millionDMT, grading 1.13 percent nickel, 0.083 percent cobalt and 31.44 percent iron.Mineral resources which are not mineral reserves do not have demonstrated economic viability. The tonnage andgrades above have been rounded to the nearest 2nd or 3rd decimal, which may have resulted in minordiscrepancies.The author recommends further metallurgical testwork to confirm the optimal leaching technology forprocessing the nickel laterite resource. Further variographic study is recommended for possible upsidepotential to increase indicated and inferred resource category tonnages. A preliminary scoping study isrecommended for ANLP, including continuous pilot leach testing to prove the concept and to derive theoptimal processing flowsheet, and sufficient engineering to obtain operating and capital costs to plus orminus 35%.4.0 INTRODUCTIONThis technical report was prepared at the request of Mr. J.A. Climie, CEO of Mindoro of Canada [TSX-Venture Exchange] and CEO and President of MRL, a wholly-owned subsidiary of Mindoro. This is thethird mineral resource estimate for the ANLP located within the Agata Projects MPSA in Agusan delNorte, Philippines (Figures 1 & 2). The first two 43-101 reports were filed on June 10, 2008 andSeptember 19, 2008, both written by this author, a qualified person as defined by National Instrument43-101.It is the author’s understanding that the drilling program was conducted to define the total globalresource potential, which will provide the basis to pursue a study on the optimal technology forenhanced value, local processing of its nickel laterite resource, and, later, for a scoping study.The project was explored under a Memorandum of Agreement between Mindoro and Minimax signedon January 19, 1997. On June 27, 1997, Mindoro executed a Deed of Assignment whereby it assignedall its rights under the MOA to MRL. By virtue of this, MRL has earned a 75% interest in all theSurigao projects (except the Mat-I Project) including the Agata Project. Minimax has also granted MRLan option to acquire additional 25% direct and indirect participating interest in such projects as theAgata Projects.The Agata Projects comprise various projects and prospects, namely, the ANLP; the Agata SouthLaterite Project [ASLP]; the North Porphyry Prospect; the South Porphyry Prospect; the AssmicorPorphyry and Gold Prospects; the American Tunnels Porphyry and Gold Prospects; the Limestone GoldProspect; and a host of other gold and copper-gold prospects, which have not been evaluated in detail. 7
  • 8. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectThe report describes the geology and mineralization of the project area and discusses the results of theresource delineation drilling program on the ANLP. It also assesses historical data and discusses theresults of the exploration programs carried out to date by MRL over the general Agata Project itself.All of the drilling and assay results generated by MRL from February 2007 to September 2008,including the BHP Billiton drilling results in 2006 are the basis for this final resource estimate. Thisreport is based on information known to the author as of November 2008.This document is compiled from technical reports written by MRL, from reports held by the Mines andGeosciences Bureau of the Philippines (MGB), from published technical data, and from observationsmade by the MRL geologists and the author. All sources of data used in this report are cited herein andare listed in Item 23.All work of MRL at the Agata Projects was carried out under the direct and close supervision of JamesA. Climie, P. Geol., also a qualified person, who carried out frequent and extensive site visits.The author visited the project site in July 2007, January 2008 and November 2008. During these visits,MRL geologists and/or mining engineers were present to assist and discuss protocols, observations,results and interpretations with the author/consultant. Likewise, various meetings were held off-site tobroaden the discussions and consultations.The ANLP is located about 47 km north-northwest of Butuan City or 73 km southwest of Surigao City(Figure 2). It is within the villages of Lawigan and Tinigbasan, municipality of Tubay, E. Morgado andLa Paz, municipality of Santiago; and Colorado municipality of Jabonga, all in the province of Agusandel Norte.This report is prepared in compliance to the Canadian National Instrument 43-101. The NI 43-101, NI43-101F1 and Companion Policy 43-101CP, the Standards of Disclosure for Mineral Projects.5.0 RELIANCE ON OTHER EXPERTSThe technical data were provided by Mindoro and a random portion was verified by the author forlogical errors and data entry errors. Other data verification procedures were performed and arediscussed in Item 16. The author believes that the datasets are satisfactory, based on his knowledge ofthe area and the random checks he performed. From the assay with lithology, collar survey, andtopographic survey datasets, the author generated a composited dataset with laterite horizonclassification based on mineral/chemical contents. This was then used in creating the sections andsurfaces.The status of MPSA-134-99-XIII (Agata) and EP-XII-021 (Agata-Bautista) were checked by the authoron the Mines and Geosciences Bureau (MGB) website and was found to be among the approvedcontracts (www.mgb.gov.ph/tenements). In addition, a visit to the MGB Central Office-MiningTenements Management Division was carried out for further checking. The author conferred with theChief of Systems Audit and Development Section, Mr. Larry M. Heradez and FTAA EvaluationSection, Mr. Levy G. Teodoro regarding the MPSA and the EP, respectively. Both attested to thevalidity and good standing of the tenements as supported by the original documents of the Contracts.The MRL tenements are discussed in Item 6 of this report.As regards the specifics pertaining to Memorandum of Agreements, ownership, and/or royaltyagreements between Mindoro, Minimax, Estrella Bautista, the author used the data supplied by Mindorowith supporting legal documents such as the Notice of Relinquishment of portion of MPSA 134-99-XIII 8
  • 9. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project(Appendix 1), and referred to previous company reports of MRL. These are likewise discussed in Item 6of this report.Figure 1: Philippine Map showing location of MRL projects.6.0 PROPERTY DESCRIPTION AND LOCATION6.1 Location:The Agata Projects are located within the northern part of Agusan del Norte province in NortheasternMindanao, Republic of the Philippines. It lies within the Western Range approximately 10 kilometerssouth of Lake Mainit (Figures 1-2). The Agata Project falls within the political jurisdiction of themunicipalities of Tubay, Santiago and Jabonga. The MPSA Contract Area, encompassing the AgataProjects, is bounded by geographical coordinates 9010’30” and 9019’30” north latitudes and 125029’30”to 125033’30” east longitudes.The ANLP is located in barangays Lawigan and Tinigbasan, municipality of Tubay, barangays E.Morgado (formerly Agata) and La Paz, municipality of Santiago, and barangay Colorado, municipalityof Jabonga, all in the province of Agusan del Norte. It lies about 73 km southwest of Surigao City and47 km north-northwest of Butuan City. The majority of MRL’s exploration activities on the project areaare located in barangays Lawigan and E. Morgado.The ASLP is located in barangays Binuangan, Tagpangahoy, and Tinigbasan, municipality of Tubay. Itis under a joint venture agreement with Delta Earthmoving, Inc. (Delta). 9
  • 10. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectThe locations of the known mineralized zones on the Agata MPSA relative to the property boundariesare illustrated in Figure 5 and 7. The ANLP mineralized zone, as defined by drilling and mapping todate, lies entirely within the Agata MPSA. Other known nickel laterite zones exist near the southernboundary of the property. Artisanal copper and gold mining is active in the Agata MPSA area and areshown in Figure 5. These are outside the delineated nickel laterite mineralized zones.There are no existing mineral reserves within or near the property boundaries. The nearest mineinfrastructures, including settling ponds, are those of the SRMI Mine located in between the parcels ofthe Agata MPSA at the southern boundaries (Figure 5). The National Highway runs parallel to thelength of the Agata MPSA, just outside the eastern boundary. In addition, a farm-to-market roadtransects the northern portion of the MPSA area, near the Tubay River.6.2 Property Description:The ANLP area is part of the Agata Projects and is covered by the approved MPSA of Minimaxdenominated as MPSA 134-99-XIII, which is comprised of 66 blocks covering an area of 4,995 hectares(ha) (Figure 2). To the southeast of the ANLP area, and surrounded by the Minimax MPSA, is theEstrella Bautista Exploration Permit (EP) Area denominated as EP 00021-XIII, covering 84.39 ha. Thislone claim block is also part of MRL’s Agata Projects and was acquired through an Agreement toExplore, Develop and Operate Mineral Property. The MPSA Contract and the EP areas are locatedwithin the Western Range in the northern part of Agusan del Norte province.The MPSA was approved on May 26, 1999 by the DENR and was registered on June 17, 1999 with theMGB Regional Office No. XIII in Surigao City. A MOA was signed by Mindoro and Minimax onJanuary 19, 1997. Mindoro assigned all its rights in the MOA to MRL on June 27, 1997. The MOAgranted MRL the exclusive and irrevocable right to earn the Option Interests in the project. At present,MRL has earned a 75% interests in the Agata Tapian Main, and Tapian San Francisco and theExtension Projects (tenements acquired after the finalization of the MOA) in the Surigao MineralDistrict. It also has a further option to acquire an additional 25% direct and indirect participatinginterest. The 2nd exploration period for the MPSA was renewed on July 23, 2004 to July 22, 2006 whilethe 3rd exploration period was granted on February 7, 2007 to February 6, 2009. The Agata-Bautista-EPwas approved on October 2, 2006.Both tenements are in good standing. Since the first Exploration Period in 1999, submission of allquarterly and annual accomplishment reports, and quarterly drilling reports; and the payment of themandated occupation fees were accomplished by MRL, on behalf of Minimax. The same was done forthe Agata-Bautista EP. Table 1: Agata Projects Tenements held by Mindoro:TENEMENT ID AGATA AGATA-BAUTISTAPERMIT NUMBER MPSA-134-99-XIII EP-21-XIIIAPPLICATION NUMBER APSA-XIII-007 EPA-00080-XIIIDATE FILED (MGB XIII) 4-Jul-97DATE APPROVED 26-May-99 2-Oct-06PERMITTEE/ APPLICANT MINIMAX BAUTISTA Jabonga, Santiago, & Tubay, Agusan delLOCATION Santiago, Agusan del Norte NorteAREA (ha**) 4,995.00 84.39 st - 3rd Exploration Period approved 7-Feb-07 1 renewal of EP filed on 29-Sep-08STATUS -ECC grantedMPSA - Mineral Production Sharing Agreement EP - Exploration PermitAPSA - Application for Mineral Production Sharing Agreement EPA - Exploration Permit Application 10
  • 11. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectThe boundaries of these tenements were located by the claimowners on a topographic map andsubmitted to the MGB-DENR for approval. A tenement boundary survey approved by the MGB will berequired through an “Order to Survey” once a mining project feasibility study has been submitted by theproponent. The coordinates used by Mindoro are those indicated in the MPSA document issued by theMGB-DENR. The surveyed drillhole collars are tied to a local grid, which in turn is tied to NationalMapping and Resource Information Authority (NAMRIA) satellite/GPS points and benchmarks.The original area of the MPSA was 7,679 ha comprising 99 blocks, but 32 claim blocks with anapproximate area of 2,700 ha were later relinquished. This leaves 4,995 ha of the approved Contractarea as of May 18, 2000. (Appendix 1) The details of the original 99 claim blocks are listed below: Table 2: Original Mining Application Claims under MPSA 134-99-XIII Name of Mining Application Claims Name of Locator Lingling 1-2 Leonor Cocon, Jr. Titus 1-3 Ruperth Villamucho Titus 10-11 Leo Deiparine Titus 14, 16 Edsel Abrasaldo Guiah and Sheryl Marenda Cabiling Noah 52 Galactica Mineral Exploration Corp. Japeth 10, 12, 15, 19 Galactica Mineral Exploration Corp. Japth 1, 3, and Jabez; Noah 53, 55, 57, 58 Galactica Mineral Exploration Corp. Noah 54 Lakeshore Mineral Exploration Corp. Titus 20, 26, 27 Resource Mineral Exploration Corp. Titus 82 Solar Mineral Exploration Corp. Banner 1-9; 12-13; 16-19; 22-29; 31; 33; 38; 40-41; 43; 44-B; 46; Affluent Mineral Exploration Corp. 47; 49; 51; 53; 55; 57; 59 Additional Minimax blocks Minimax Mineral Exploration Corp.On April 12, 1986, Leonor Cocon, Jr. executed a Special Power of Attorney in favor of JessieJuansengfue involving his two (2) mining claims in Agata. This legal instrument was registered with theMGB-Regional Office No. XIII on March 10, 1987. On July 31, 1987, Jessie Juansengfue signed thetwo (2) mining claims with Minimax through a Royalty Agreement with Option to Purchase. This wasregistered with the MGB-Regional Office No. XIII on August 5, 1987. On April 17, 1997, thisagreement was amended via an Amendment to Royalty Agreement, which was registered with theMGB-Regional Office No. XIII on June 4, 1997. The Royalty Agreement was further amended throughan Amendment to Royalty Agreement on November 23, 2005, which was subsequently registered withthe MGB-XIII. The royalties equivalent to 2% of its annual operation based on “Gross Value, FOB,Philippine Ports” shall be paid to Juansengfue upon commencement of commercial production of goldand other precious metals and minerals.On May 15, 1987, Marenda Cabiling executed and registered with the MGB-Regional Office a SpecialPower of Attorney in favor of Rod Manigos regarding her two (2) mining claims in Agata. RodManigos in turn, signed the subject mining claims with Minimax via a Royalty Agreement with Optionto Purchase on August 4, 1987. The Agreement was registered with the MGB-Regional Office No. XIII[MGB-XIII] on August 5, 1987. The Royalty Agreement was amended via an Amendment to RoyaltyAgreement on April 17, 1997 and registered with the MGB-XIII on June 4, 1997. It was furtheramended on May 18, 2006 and subsequently registered with MGB-XIII. The royalties equivalent to 2%of its annual operation based on “Gross Value, FOB, Philippine Ports” shall be paid to Cabiling uponcommencement of commercial production of gold and other precious metals and minerals. 11
  • 12. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectOn December 4, 1987, Ruperth Villamucho, Leo Deiparine, and Edsel Abrasaldo executed a SpecialPower of Attorney regarding their mining claims in favor of Jose de Guzman. This was registered withthe MGB-XIII on December 7, 1987. On February 7, 1997, Ruperth Villamucho, Leo Deiparine, andEdsel Abrasaldo, through their Attorney-in-Fact, executed a Deed of Assignment for their miningclaims in favor of Minimax. This was registered with the MGB-XIII on February 28, 1997.On February 7, 1997, Resource Mineral Exploration Corporation executed a Deed of Assignment overits mining claims in favor of Minimax. On February 12, 1997, Galactica Mineral ExplorationCorporation deeded the mining claims Japeth 10, 12, 15 and 19 via a Deed of Assigment in favor ofMinimax. Likewise, on February 14, 1997, Solar Mineral Exploration Corporation made a Deed ofAssignment regarding its mining claims in favor of Minimax. These Deeds were registered with theMGB-XIII on February 28, 1997.On August 18, 1997, Lakeshore Mineral Exploration Corporation, Affluent Mineral ExplorationCorporation and Galactica Mineral Exploration Corporation (for the mining claims “Japeth 1,3”,“Jabez”, “Noah 52, 55, 57, and 58”) deeded their mining claims to Minimax. The Deed of Assignmentwas registered with MGB-XIII on October 3, 1997.During the processing of the Minimax MPSA Application, Minimax was able to expand the areas itoriginally applied for. The additional tenement blocks automatically became part of the MRL-MinimaxMOA.On May 26, 1999, the Secretary of the DENR signed the Minimax MPSA application covering 7,679 hacomprising 99 claim blocks. The approved MPSA was registered on June 17, 1999.On May 18, 2000, 32 claim blocks with an area of approximately 2,700 ha were relinquished byMinimax, leaving 4,995 ha of the approved Contract Area (Appendix 1).On September 29, 2000, immediately after the Boyongan Porphyry Copper discovery, Minimax’saffiliate, Apical Mining Corporation filed an MPSA application covering 7,764 ha of ground adjacent to(north, southeast, and south of) Agata Projects. This property is known as the Agata Extension (Figure2). The application was later converted to EPA and is in the advanced stage of processing by MGB-XIII.On October 26, 2004, MRL Gold was able to acquire, via an Agreement to Explore, Develop andOperate Mineral Property, one claim block of approximately 84.39 ha within the Agata Projects knownas the Bautista Claim. The Agreement was signed between Estrella Bautista, claimowner, and MRL andwas registered with MGB-XIII on November 4, 2004. Royalties equivalent to 1.5% of Net SmelterReturns shall be paid to the claimowner for the commercial exploitation of the property. The MPSAapplication of Bautista was converted into an EP application; the EP was approved on October 2, 2006and is known as EP-00021-XIII.With the issuance of an MPSA covering the Agata Projects, the landuse classification of the area istherefore for mineral production. Those outside the Contract area are essentially classified astimberland. There are no dwellers within the ANLP and ASLP drilling areas. The author is not aware ofany environmental liabilities to which the property is subject other than those that fall under thePhilippine Mining Act of 1995.On May 20, 2008, an Environmental Compliance Certificate (ECC) was issued by the DENR to MRLfor nickel laterite mineral production covering 600 ha within the Agata MPSA Contract area, includingboth the Agata North and Agata South projects. 12
  • 13. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectThe barangay (village) centers where the projects are located, are mostly populated by Christians. Thereare some indigenous peoples (IP) that live in the surrounding areas within and outside the MinimaxMPSA Contract area. Sitio Coro, Bgy. Colorado is almost entirely populated by IPs while other IPgroups have merged with the non-IP inhabitants in barangays E. Morgado and La Paz, municipality ofSantiago, and Bgy. Tagmamarkay, Tubay.MRL, through the assistance of the National Commission on Indigenous Peoples (NCIP) - RegionalOffice No. XIII, has recently signed a Memorandum of Agreement with the IPs living within the MPSAContract Area albeit the latter have no Certificate of Ancestral Domains Claim (CADC) nor Certificateof Ancestral Domains Title (CADT) within the Contract area. The MOA calls for a 1% royalty on grosssales of mineral products to be given to the IPs as provided for in the Indigenous Peoples Reform Act(IPRA) of the Republic of the Philippines.Areas of nickel laterite mineralization have been mapped at a regional scale in the ASLP located in thesouthern part of the Agata Projects and is the subject of a Mining Services Agreement between MRL,Minimax and Delta. No drilling or sampling has been carried out in this area prior to the negotiationswith Delta. The southernmost area of the ASLP is 1 to 2 km north of the operating nickel laterite mineof SR Metals Inc., just to the south of the Agata Projects. Delta, at its sole cost and risk, may carry outexploration of the ASLP and may select an area of up to 250 ha to advance to production if warranted.6.2.1 Tenement Type:An MPSA is a form of Mineral Agreement, for which the government grants the contractor theexclusive right to conduct mining operations within, but not title over, the contract area during a definedperiod. Under this agreement, the Government shares in the production of the Contractor, whether inkind or in value, as owner of the minerals. The total government share in a mineral production sharingagreement shall be the excise tax on mineral products. The excise tax is 2% of the actual market valueof the gross output at the time of extraction. In return, the Contractor shall provide the necessaryfinancing, technology, management and personnel for the mining project. Allowable mining operationsinclude exploration, development and utilization of mineral resources.The approved MPSA has a term not exceeding 25 years from the date of the execution thereof andrenewable for another term not exceeding 25 years. It gives the right to the Contractor to explore theMPSA area for a period of 2 years renewable for like periods but not to exceed a total term of 8 years,subject to annual review by the Director to evaluate compliance with the terms and conditions of theMPSA.The Contractor is required to strictly comply with the approved Exploration and Environmental WorkPrograms together with their corresponding budgets. These work programs are prepared by theContractor as requirements in securing the renewal of the Exploration Period within the MPSA term.The Contractor is likewise required to submit quarterly and annual accomplishment reports under oathon all activities conducted in the Contract Area. All the reports submitted to the Bureau shall be subjectto confidentiality clause of the MPSA. The Contractor is further required to pay at the same date everyyear reckoned from the date of the first payment, to the concerned Municipality an occupation fee overthe Contract Area amounting to PhP 75.00 per hectare. If the fee is not paid on the date specified, theContractor shall pay a surcharge of 25% of the amount due in addition to the occupation fees.If the results of exploration reveal the presence of mineral deposits economically and technicallyfeasible for mining operations, the Contractor, during the exploration period, shall submit to theRegional Director, copy furnished the Director, a Declaration of Mining Project Feasibility togetherwith a Mining Project Feasibility Study, a Three Year Development and Construction or CommercialOperation Work Program, a complete geologic report of the area and an Environmental Compliance 13
  • 14. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectCertificate (ECC). Failure of the Contractor to submit a Declaration of Mining Project Feasibility duringthe Exploration Period shall be considered a substantial breach of the MPSA.Once the ECC is secured, the Contractor shall complete the development of the mine includingconstruction of production facilities within 36 months from the submission of the Declaration of MiningProject Feasibility, subject to such extension based on justifiable reasons as the Secretary may approve,upon the recommendation of the Regional Director, through the MGB Director.Any portion of the contract area, which shall not be utilized for mining operations, shall be relinquishedto the Government. The Contractor shall also show proof of its financial and technical competence inmining operations and environmental management.On February 2005, the Philippine Supreme Court decided with finality allowing for the 100% foreignownership of the mineral tenement under the Financial and Technical Assistance Agreement (FTAA).An Exploration Permit (EP) is an initial mode of entry in mineral exploration allowing a QualifiedPerson to undertake exploration activities for mineral resources in certain areas open to mining in thecountry. Any corporation may be allowed a maximum area of 32,400 ha in the entire country. The termof an EP is for a period of two (2) years from date of its issuance, renewable for like periods but not toexceed a total term of four (4) years for nonmetallic mineral exploration or six (6) years for metallicmineral exploration. Renewal of the Permit is allowed if the Permittee has complied with all the termsand conditions of the Permit and he/she/it has not been found guilty of violation of any provision of“The Philippine Mining Act of 1995” and its implementing rules and regulations. Likewise, the conductof a feasibility study and filing of the declaration of mining project feasibility are undertaken during theterm of the Permit.7.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE andPHYSIOGRAPHY7.1 Accessibility:The ANLP site is accessible by any land vehicle from either Surigao City or Butuan City thru the Pan-Philippine Highway. At the highway junction at Barangay Bangonay, Jabonga, access is through partlycemented, gravel-paved Jabonga Municipal road for approximately 4 km, then for another 6 km thru afarm-to-market road to Barangay E. Morgado in the municipality of Santiago (Figure 2). From Manila,daily flights are available going to Butuan City. Moreover, commercial sea transport is available en-route to Surigao City and Nasipit (west of Butuan City) ports.An alternate route is available from the Pan-Philippine Highway via the Municipality of Santiago. FromSantiago town proper, barangay E. Morgado can be accessed through a 1.5 km municipal-barangay roadgoing to Bgy. La Paz, thence by pump boats. The travel time is about 15 minutes via the Tubay River.The northern portion of the ANLP can be reached from Bgy. E. Morgado by hiking for about 1 houralong existing foot trails (approximately 1.5 km). 14
  • 15. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectFigure 2: MRL Tenements and Projects in the Surigao Mineral District 15
  • 16. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project7.2 Climate:The climate of Jabonga, Santiago and Tubay municipalities where the project area is situated belongs toType II on the PAGASA Modified Coronas Classification. It has no dry season with very pronouncedrainfall months. Climatological Normals from 1981-2000 show that peak rainfall months are fromOctober to February. The highest mean monthly rainfall is 308 mm during January and the lowest meanmonthly rainfall is 104.8 mm during May while mean annual rainfall is 2027 mm. Table 3: Climatological Normals and Extremes 1961-2000 RAINFALL TEMPERATURE WIND CLOUD RHMONTH AMOUNT # OF Dry Wet Dew AMT MAX MIN MEAN % DIR SPD (mm) RD Bulb Bulb Pt. (okta)Jan 308.0 21 30.1 22 26.1 25.7 24.2 23.6 88 NW 1 6Feb 211.8 15 30.8 22 26.4 26.0 24.2 23.5 86 NW 1 6Mar 149.8 16 31.8 22.4 27.1 25.7 24.5 23.7 83 NW 1 5Apr 107.2 12 33.1 23.1 28.1 27.7 25.2 24.3 82 ESE 1 5May 104.8 14 33.8 23.8 28.8 28.3 25.8 25.0 82 ESE 1 6Jun 135.1 16 33.0 23.6 28.3 27.8 25.5 24.7 83 ESE 1 6Jul 157.5 16 32.5 23.3 27.9 27.5 25.3 24.5 84 NW 1 6Aug 105.1 12 32.8 23.5 28.1 27.8 25.4 24.6 82 ESE 2 6Sep 140.2 14 32.8 23.3 28.1 27.7 25.4 24.6 83 NW 2 6Oct 195.3 17 32.3 23.2 27.8 27.4 25.3 24.6 84 NW 1 6Nov 193.7 18 31.6 22.9 27.2 26.9 25.1 24.5 86 NW 1 6Dec 218.4 19 30.8 22.5 26.7 26.3 24.7 24.1 88 NW 1 6 Annual 2026.9 190 32.1 23.0 27.6 27.1 25.1 24.3 84 NW 1 6Based on Butuan City Synoptic Station7.3 Local Resources and Infrastructure:A farm-to-market road was constructed by MRL in 2005 and is currently servicing three (3) barangaysin two (2) towns. This road was turned-over to the local government. Road maintenance is beingsupported by the company.The drill site and the whole plateau is a fern-dominated (bracken heath) open grassland sparselyinterspersed with forest tree seedlings and saplings of planted species. A few secondary growth treesline the streams along the lower slopes. The floodplain of Tubay River is planted with agricultural cropssuch as rice, corn, banana, etc.7.4 Physiography:Most part of the Agata Projects spans the NNW-SSE-trending Western Range, which towers over theMindanao Sea to the west and Tubay River to the east, which drains southward from Lake Mainit. Thewestern part of the area is characterized by a rugged terrain with a maximum elevation of 528 metersabove sea level (masl). This part is characterized by steep slopes and deeply-incised valleys. The easternportion, on the other hand, is part of the floodplain of Tubay River, which is generally flat and low-lying, and has an elevation of less than 30 masl.Within the project area, steep to very steep slopes are incised by gullies and ravines while the centralportion is characterized by broad ridges dissected in the west section by a matured valley formationexhibiting gentle to moderate slopes. Elevations range from 200 to 320 masl extending similartopographic expressions going to the south. In the northern expanse, it abruptly changes to rugged 16
  • 17. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Projectterrain having a very steep slope. Nickeliferrous laterite is widespread on the ridges stretching from thecentral part going to the south.Based on the initial evaluation of the area, the development of laterite mineralization is extensive, butnot limited to the broad ridges and is present on gently-moderately sloping topography. The topographyover the principal laterite development together with the position of the area of detailed drilling isshown in the photo below.Photo 1: Panoramic view of ANLP showing the main area of laterite development.8.0 HISTORYThe earliest recognized work done within the area is mostly from government-related projectsincluding: • The Regional Geological Reconnaissance of Northern Agusan reported the presence of gold claims in the region (Teves et al. 1951). They mapped sedimentary rocks (limestone, shale and sandstone) of Eocene to mid-Tertiary age. • Geologists from the former Bureau of Mines and Geosciences Regional Office No. X (BMG-X) in Surigao documented the results of regional mapping in the Jagupit Quadrangle within coordinates 125°29´E to 125°45´ east longitude and 9°10´ to 9°20´ north latitudes. They described the geology of the Western Range as a belt of pre-Tertiary metasediments, metavolcanics, marbleized limestone, sporadic schist and phyllite and Neogene ultramafic complex. (Madrona, 1979) This work defined the principal volcano-sedimentary and structural framework of the region and recognized the allochtonous nature of two areas of ultramafic rocks that comprise serpentinized peridotite in the Western Range, one between the Asiga and Puya rivers in the Agata project area and the other west of Jagupit. These were mapped by Madrona (1979) as blocks thrust westward, or injected into the metavolcanics between fault slices. • The United Nations Development Program (UNDP, 1982) conducted regional geological mapping at 1:50,000 scale and collected stream sediment samples over Northern Agusan. The UNDP report of 1984 described the geological evolution of this region and included a detailed stratigraphic column for the Agusan del Norte region. Two anomalous stream sediment sites 17
  • 18. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project were defined near the Agata project during this phase of work. The Asiga porphyry system that lies east of the Agata tenements was explored by Sumitomo Metal Mining Company of Japan in the 1970’s and 1980’s (Abrasaldo 1999).La Playa Mining Corporation, financed by a German company in the late 1970’s, explored within theAgata Project area for chromiferrous laterite developed over weathered ultramafic rocks. There werefive (5) test pits dug in the area.In 1987, Minimax conducted reconnaissance and detailed mapping and sampling right after gainingcontrol over the area. Geological mapping at 1:1,000 scale was undertaken in the high-gradinglocalities, and an aerial photographic survey was conducted and interpreted. MRL established a miningagreement with Minimax in January 1997, and commenced exploration in the same year.Several artisanal miners are active within the project site since the 1980’s up to the present. Theseminers are conducting underground mining operations at the Assmicor and American Tunnels area andgold panning of soft, oxidized materials within Assmicor and Lao Prospect areas and of sediments inmajor streams including that of Tubay River. The region of small-scale mining activity was later named“Kauswagan de Oro” (translated: “progress because of gold”). The majority subsequently left the regionfor other high-grading areas in Mindanao. In more recent years, a group of copper “high-graders”emerged in the American Tunnels area mining direct-shipping grade copper ore. However, this newtrend waned due to the softening of metal prices in the latter part of 2008.9.0 GEOLOGICAL SETTING9.1 Regional GeologyThe principal tectonic element of the Philippine archipelago is the elongate Philippine Mobile Belt(PMB – Rangin, 1991) which is bounded to the east and west by two major subduction zone systems,and is bisected along its north-south axis by the Philippine Fault (Figure 3). The Philippine Fault is a2000 km long sinistral strike-slip wrench fault. In the Surigao district, this fault has played an importantrole in the development of the Late Neogene physiography, structure, magmatism and porphyry Cu-Auplus epithermal Au metallogenesis. There has been rapid and large-scale uplift of the cordillera in theQuaternary, and limestone of Pliocene age is widely exposed at 1000-2000 meters elevation (Mitchelland Leach 1991). A cluster of deposits on the Surigao Peninsula in the north consists chiefly ofepithermal gold stockwork, vein and manto deposits developed in second-order splays of the PhilippineFault (Sillitoe 1988). The mineralization-associated igneous rocks in Surigao consist mostly of smallplugs, cinder cones and dikes dated by K-Ar as mid-Pliocene to mid-Pleistocene (Mitchell and Leach1991; Sajona et al. 1994). (B.D.Rohrlach, 2005)The basement rocks consist of the Concepcion greenschist and metamorphic rocks of Cretaceous ageoverthrusted by the pillowed Pangulanganan Basalts of Cretaceous to Paleogene age, which in turn,were overthrust by the Humandum Serpentinite. Its emplacement probably occurred during theCretaceous time. This unit occupies a large part in the tenement area, which have high potential fornickel laterite mineralization. (Tagura, et.al., 2007)The Humandum Serpentinite is overlain by Upper Eocene interbedded limestone and terrigenous clasticsediments of the Nabanog Formation. These are in turn overlain by a mixed volcano-sedimentarypackage of the Oligocene Nagtal-O Formation, which comprises conglomeratic andesite, wacke withlesser pillow basalt and hornblende andesite, and the Lower Miocene Tigbauan Formation. The latter iscomprised of conglomerates, amygdaloidal basalts, wackes and limestones. Intrusive events associatedwith the volcanism during this period resulted in the emplacement of plutons and stocks that are 18
  • 19. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Projectassociated with porphyry copper-gold and precious metal epithermal mineralization in the region.(Tagura, et.al., 2007)Lower Miocene Kitcharao Limestone and the lower part of the Jagupit Formation overlie the TigbauanFormation. The Jagupit Formation consists of conglomeratic sandstone, mudstone and minor limestone.The youngest stratigraphic unit is the Quaternary Alluvium of the Tubay River floodplain.Mineral deposits within the region are dominated by epithermal precious metal deposits and porphyrycopper-gold. There is a rather close spatial and probably genetic association between epithermalprecious metals and porphyry deposits. These deposits exhibit strong structural control. First orderstructures are those of the Philippine Fault system, which play a role in the localization of the oredeposits, while the second order structures that have developed as a result of the movement along thePhilippine Fault system are the most important in terms of spatial control of ore deposition. (Tagura,et.al., 2007)Other mineral deposits are related to ultramafic rocks of the ophiolite suite and comprise lenses ofchromite within harzburgite and lateritic nickel deposits that have developed over weathered ultramaficrocks.9.2 Local Geology of Agata Project AreaThe Agata Projects area is situated along the southern part of the uplifted and fault-bounded WesternRange on the northern end of the east Mindanao Ridge. The Western Range is bounded by two majorstrands of the Philippine Fault that lie on either side of the Tubay River topographic depression (B.Rohrlach, 2005). The western strand lies offshore on the western side of the Surigao Peninsula,whereas the eastern strand, a sub-parallel splay of the Lake Mainit Fault, passes through a portion of theproperty and separates the Western Range from the Central Lowlands to the east (Figure 4). Thesesegments have juxtaposed lithologies consisting of at least six rock units including pre-Tertiarybasement cover rocks, ophiolite complex, clastic limestone and late-stage Pliocene calc-alkalineintrusive rocks. (Tagura, et.al., 2007)9.2.1 Greenschist (Cretaceous)The basement sequence on the property comprises greenschists, correlative to the ConcepcionGreenschists (UNDP, 1984), which occur mostly in the central to southern portions of the AgataProject. This rock outcrops in Guinaringan, Bikangkang and Agata Creek as long, elongated bodies inthe southern half of the tenement area. In the northern half, this unit is mapped as narrow, scatterederosional windows. The predominant minerals are quartz, albite, and muscovite with associated chlorite,epidote and sericite. In places, talc and serpentine are the main components. (Tagura, et.al., 2007) Theexposure of the schist by the late Eocene implies a metamorphic age of Paleocene or older and adepositional age of Cretaceous (UNDP, 1984)9.2.2 Ultramafics (Cretaceous)Ultramafic rocks unconformably overlie the basement schist and formed as conspicuously peneplanedraised ground on the property area. These are comprised of serpentinites, serpentinized peridotites,serpentinized pyroxenites, serpentinised harzburgites, peridotites, pyroxenites and lesser dunite, whichare fractured and cross-cut by fine networks of talc, magnesite and/or calcite veins. These rocks areusually grayish-green, medium- to coarse-grained, massive, highly-sheared and traversed by meshworkof serpentine and crisscrossed by talc, magnesite and calcite veinlets. The serpentinites in the AgataProjects correlate with the Humandum Serpentinite (B. Rohrlach, 2005). The Humandum Serpentinitewas interpreted by UNDP (1984) to be emplaced over the Concepcion greenschists probably before the 19
  • 20. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectFigure 3: Geologic Map of Surigao Mineral District 20
  • 21. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectOligocene, and before late Eocene deposition of the Nabanog Formation. MGB (2002) classified theHumandum Serpentinite as a dismembered part of the Dinagat Ophiolite Complex, which is establishedto be of Cretaceous age.These rocks have potential for nickel due to nickel-enrichment in the weathering profile as observed inits deep weathering into a reddish lateritic soil. (B. Rohrlach, 2005).9.2.3 Limestone (Upper Eocene)Several bodies of limestone correlative to the Nabanog Formation (UNDP 1984), were mapped in theproject area. The easternmost limestone body lies in the Assmicor-Lao prospect region, in the centralportion of the property and Guinaringan-Bikangkang area and at Payong-Payong area located at thewestern side. In the northern half of the property, these limestones occur as narrow scattered bodiesprobably as erosional remnants. In places, this unit exhibits well-defined beddings and schistosity andcrisscrossed by calcite ± quartz veinlets. The limestones outcropping near intrusive bodies are highly-fractured with limonite and fine pyrite, associated with gold mineralization, in fractures and show greenhue due to chloritization. In places, the limestone is interbedded with thin sandstone, siltstone, and shalebeds.9.2.4 Andesite and TuffSparsely distributed across the property are narrow bodies of andesite and tuff. Towards the vicinity ofPeak 426 at the northwestern part, the andesite occurs as an imposing volcanic edifice. It is generallyfine-grained to locally porphyritic in texture. The tuff grades from crystal tuff to lithic lapilli. Severalexposures of this unit are described by Abrasaldo (1999) as being strongly fractured adjacent tonortheast-trending faults.9.2.5 Intrusives (Upper Oligocene to Lower Miocene)A series of intrusives of alkalic and calc-alkaline composition occur in close vicinity to Lake MainitFault. These include syenites, monzonites, monzodiorites and diorites that are closely associated withgold mineralization as most of the workings and mining activities are concentrated within the vicinity ofthese intrusive rocks. The syenites are well-observed in the American and Assmicor tunnels and consistmostly of potash feldspar. The monzonites are noted in the Lao Area, in the American Tunnel andoccasionally along Duyangan Creek. Monzodiorite outcrops in the Kinatongan and Duyangan creeksand sparsely in the American Tunnel. Trachyte to trachyandesite porphyry is noted in the KinatonganCreek. Diorites were observed in the Assmicor Tunnel, which occur mostly as dikes. The intrusions inthe Lao and American Tunnel prospects have been tentatively correlated with the Mabaho Monzonite(UNDP, 1984).9.2.6 Limestone (Lower Miocene)Correlatives of the Kitcharao limestone are scattered through large areas of the Agata Projects area.Minor outcrops of the Jagupit Formation lie in the eastern claim block adjacent to barangay Bangonay(Abrasaldo, 1999).9.2.7 Recent AlluviumQuaternary Alluvium underlies the Tubay River floodplain, within the valley between the WesternRange and the Eastern Highlands. 21
  • 22. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project9.3 Geology of the ANLP AreaThe widespread occurrence of harzburgite, peridotite, pyroxenite, their serpentinized equivalents,serpentinite, and localized lenses of dunite/serpentinized dunite comprise the lithology in the projectarea. These rocks are confined to broad ridges extending down to the footslopes. The ultramafic bodiesare of probable Cretaceous age, and were emplaced as part of an ophiolite sequence during the UpperEocene (Abrasaldo, 1999). Schists are also present in the extremities of the laterite area. Several ofthese rock types were likewise identified in petrographic/mineragraphic analyses of drill core and rocksamples. Sample number AGA-101 was identified as wehrlite (peridotite) while AGA-102, AGA-104and AGL-161 17.2m are serpentinized wehrlite. The drill core sample numbers AGL-161 12.15m,AGL-167 and SU02650 (AGL-238) are serpentinized websterites (pyroxenite) while SU02648 andSU02649 (AGL-238) are websterites. Serpentinites are found in sample numbers AGA-105, AGL-152,AGL-168, AGL-169, AGL-175, AGL-184 and AGL-216. One drill core sample from AGL-163 wasidentified as cataclasite. The location of these samples is shown in Figure 4. Lineaments trending NEare interpreted to be present in the area.Geological mapping in the project area showed favorable development of laterite along the broad ridgescharacterized by peneplane topography. These areas are where the drilling activities are concentrated. Inareas with moderate to semi-rugged topography, erosion proceeds much faster than soil development,hence the laterite is thinner. To date, estimated area of laterite in the prospect area is approximately 286ha. (Figures 4, 5 & 8).In the Agata Project, there are two distinct geomorphic features that have influenced laterite formationand consequent nickel enrichment. The Eastern part of the delineated body has a moderate relief whosebedrocks are exposed in ridge tops and in the nearby creeks. On the other hand, the Western lateriteoccurs on a low relief terrain and with no exposures of bedrock on its hillcrests. In the Western area, thelaterite is well developed and contains thick and highly mineralized limonite/saprolite and transitionrocks. The Eastern Laterite Zones contain boulders across the laterite profile suggesting transport. Itslimonite zone is usually thinner. (A. Buenavista, 2008)Test pits that were previously excavated by a previous company showed a maximum depth of 9.40 mand an average depth of 4.96 m. All these test pits have bottomed in limonite. Drilling done by QNI,Phils. (QNPH) and MRL showed thicker laterite profile than what was revealed by previous test pitting.10.0 DEPOSIT TYPESThe Surigao Mineral District is host to several deposit types. The Philippine Fault has played animportant role in the development of the Late Neogene physiography, structure, magmatism andporphyry Cu-Au plus epithermal Au metallogenesis. An intense clustering of porphyry Cu-Au andepithermal Au deposits occurs along the Eastern Mindanao Ridge.There is a strong structural control on the distribution of Au-Cu deposits in the Surigao district, and aclear association of deposits and mineral occurrences with high-level intrusives and subvolcanic bodies.Most of the centers of mineralization are located along NNW-SSE-trending second-order fault splays ofthe Philippine Fault, and where these arc-parallel structures are intersected by northeast-trending cross-faults. The Tapian-San Francisco property lies in a favorable structural setting at the district-scale, at theintersection between multiple strands of a NE-trending cross-structure and the Lake Mainit Fault. Thissame NE-trending structural axis encapsulates both the Boyongan porphyry deposit and the Placerepithermal gold deposits. (B. Rohrlach, 2005) 22
  • 23. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectFigure 4: Agata Geologic Map 23
  • 24. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectMost of the known hydrothermal gold mineralization within the district is of low-sulfidation epithermalcharacter developed in second-order splays of the Philippine Fault. The mineralization is predominantlyof Pliocene age and is spatially and temporally associated with the Mabuhay andesitic volcanism.Epithermal mineralization tends to be confined to the Mabuhay Clastics and associated andesitic stocks,lavas and pyroclastics, and in older rocks immediately beneath the unconformity at the base of theMabuhay Clastics. The principal low-sulfidation epithermal-type, carbonate-replacement-type andporphyry-type deposits and occurrences include: vein-type (Tabon-Tabon vein, Plancoya vein); bulk-mineable stringer stockworks (Placer, Motherlode, Mapaso, Nabago); stratabound ore or carbonate-hosted (Siana mine); surface workings in argillized zones (Mapawa, Hill 664, Manpower, Layab,Gumod); placer gold (Malimono-Masgad region); porphyry Cu-Au (Boyongan, Bayugo, Asiga andMadja); high-level porphyry-style alteration (Masgad, Malimono, Tapian-San Francisco) and highsulfidation (Masapelid Island). (B.D. Rohrlach, 2005)The principal deposit types that are being explored for in the MRL tenement holdings in the SurigaoMineral District are: Porphyry Cu-Au of calc-alkaline or alkaline affinity: TSF, TM & Ag Low-sulfidation epithermal Au: TM, TSF, Ag High-sulfidation epithermal Cu-Au: TSF Carbonate-hosted Disseminated Au-Ag Ore: Ag Skarn Au-(Cu): Ag, TSF Nickeliferrous Laterite: Ag, TSF, TM, Mat-iThe first five deposit types collectively belong to the broad family of magmatic-hydrothermal Cu-Audeposits that form above, within and around the periphery of high-level intrusive stocks of hydrous,oxidized, calc-alkaline to potassic alkaline magmas that are emplaced at shallow levels in the crust ofactive volcanic arcs. These different deposit types form at different structural levels of magmaticintrusive complexes, and their character is governed by a multiplicity of factors that include depth ofmagmatic degassing, degassing behavior, host-rock lithology and structural preparation. (B.D.Rohrlach, 2005)The Tapian-San Francisco, Tapian Main and Agata properties have high potential for the discovery ofboth porphyry Cu-Au style mineralization at depth and epithermal style mineralization at shallowerlevels. (B.D. Rohrlach, 2005)The Agata Projects area has high potential for the presence of one or more porphyry-type Cu-Auhydrothermal systems associated with 3 principal targets, and multiple satellite targets, that areassociated with zones of high IP chargeability. Porphyry-style mineralization has been encounteredpreviously in the Agata region by shallow drill holes in targets that are associated with modest IPchargeability anomalies. The Agata Projects possess multiple conceptual target styles such as porphyry,epithermal, Carlin-type and Ni-laterite (Figure 5).Occurrences of nickel and cobalt-bearing iron-rich laterites developed on ultramafic rocks are reportedfrom several areas of the Surigao del Norte province (Louca 1995). Laterites developed on ultramaficrocks comprising serpentinized peridotite occur within the Agata project area, and potential existswithin the Tapian Main, Tapian-San Francisco and Mat-i properties for these deposit types, in as muchas ultramafic rocks are present on these areas. (B. Rohrlach, 2005)The spatial relationship of the nickel laterite and the underlying porphyry Cu-Au mineralizationprospects is illustrated in Figure 6. There is no geological relationship between the two. 24
  • 25. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectFigure 5: Agata CompilationFigure 6: Idealized Model of spatial relationship between nickel laterite and porphyry targets. 25
  • 26. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectRecent reconnaissance geological mapping by MRL geologists has expanded the company’s globalnickel laterite resource potential. Mapping at Agata Project had previously outlined an area of potentialnickel laterite mineralization covering approximately 600 ha comprising both the ANLP and the ASLPareas. The latter is the subject of Minimax-MRL- Delta agreement. Delta carried out a resourcedelineation program in this area in 2007-2008.Encouraged by the early results of the nickel laterite exploration in the Agata Project, a regionalmapping program was carried out to determine the potential nickel laterite areas Mindoro has in itsSurigao Mineral District tenements. Results indicate potential for further nickel laterite mineralizationon the adjacent Tapian Main, Tapian SF and Mat-I tenements. (Figure 7)Based on the mapping alone, there is no guarantee that nickel grades and thickness will be ofcommercial interest. Accordingly, a program of reconnaissance auger drilling was carried out toestablish a preliminary indication of the nickel laterite potential of these tenements. Several areas havebeen outlined that justify drilling and resource delineation.Focus on the nickel laterite prospect was triggered by the very high demand for ferro-nickel feedstockfor stainless steel production in China commencing in 2005-2006. The Surigao Region is also emergingas a major nickel laterite district. There are a number of deposits either in production, providing DirectShipping Ore (DSO) to markets and processing plants in China, Japan, Korea and Australia, or beingdeveloped. These include the SR Metals Mine, the geological extension of the Agata nickel lateritemineralization, located about 4.5km southeast of ASLP and about two (2) km to Delta’s drilling Area Ain Brgy. Binuangan, Tubay. Following the softening of nickel prices in recent months, some of theexisting mines for DSO have suspended production.Several attractive alternatives are emerging for the local processing of nickel laterite. These include;constructing an on-site blast or electric arc furnace for nickel pig iron production (a low gradeferronickel product); ferronickel smelting (a ferronickel smelter recently commenced operation not faraway at Iligan City); heap-leaching, for which pilot testing on another Philippine laterite deposit hasproduced promising results; atmospheric (tank) leaching; and an improved generation of High PressureAcid Leach (HPAL) plants. HPAL technology is currently being used with great success by Sumitomoon its Philippine Coral Bay operation, and shows considerable promise for the local processing ofSurigao ores. In fact, Nickel Asia, in joint venture with Sumitomo, recently announced that it expects toproceed with construction of a high pressure acid leach (HPAL) plant in the Surigao District, which willproduce 30,000 tonnes per year nickel product. Current soft nickel prices may delay this development.11.0 MINERALIZATION11.1 Agata Nickel Laterite ProjectNickeliferrous laterite deposits are present over a broad region in the Agata Projects area (Figures 5, 7& 8). They are divided into two (2) major areas known as the ANLP and the ASLP. Based on mapping,the former has an area of approximately 286 hectares while the latter comprises about 235 hectares. Inthe ANLP, drilling is concentrated in about eighty (80) percent of the interpreted nickel lateritemineralization to date. 26
  • 27. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectFigure 7: Compilation Map Showing areas of Mapped Nickel Laterite Mineralization 27
  • 28. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectThe laterites are developed over ultramafic rocks that lie along the Western Range. The rock typeswithin the ultramafics are harzburgite, serpentinized harzburgite, peridotite, serpentinized peridotite,pyroxenite, serpentinized pyroxenite, serpentinite with localized lenses of dunite/serpentinized dunite.The ultramafic bodies are of probable Cretaceous age, and were emplaced as part of an ophiolitesequence during the Upper Eocene (Abrasaldo, 1999). Formation of the laterites is thought to haveoccurred during the Pliocene or early Pleistocene. The largest of the laterite bodies overlies the centralultramafic body (Figure 4).Initially, MRL undertook aerial photograph interpretations and field inspections, to define areas ofpotential laterite formation. The soil profile is intensely ferruginous in this region, and relic cobbles ofintensely fractured and serpentinized ultramafic rock lie scattered throughout the region of observedlaterite development. At higher elevations along the topographic divide, ferruginous pisolites and blocksof lateritic crust were observed developed on an ultramafic protolith.Nickel laterites are the products of laterization or intense chemical weathering of the ultramafic rocks,especially the olivine-rich varieties like harzburgite and dunite. This process results to the concentrationof nickel and cobalt of the parent rock. Its formation is favored in stable terrains like plateaus or broadridges and in humid climatic conditions with high rainfall and warm temperature. Latest explorationwork in the area has revealed that nickel laterite likewise occurs along the slopes.The laterite profile in the ANLP consists of the ferruginous laterite, limonite zone, saprolite zone, andthe saprolitic rock, from surface to bottom of the profile. The degree of weathering gradually increasesas the zone nears the surface. The limonite zone is characteristically iron oxide-rich where thepredominant minerals are hematite, goethite and clay while the saprolite zone consists of Mg-richminerals.Patches of garnierite are present within the saprolite and saprolitic rock horizon. Abundant garnieritewas observed in a trench along the slopes on the western portion of ANLP.For the ANLP drilling program, MRL initially classified the laterite horizons according to visuallogging. This was later reclassified according to nickel and iron content as follows: a. Ferruginous laterite – < 0.80% Ni, ≥30% Fe% b. Limonite – ≥ 0.80% Ni, ≥30% Fe% c. Saprolite – ≥ 0.80% Ni, <30% Fe% d. Saprolitic Rock – < 0.80% Ni, <30% Fe%Table 4 shows the average values for the different horizons according to this classification. The Nivalues are highest in the saprolite zone (average is 1.21%), followed by limonite zone. The ferruginouslaterite horizon has lower nickel content and highest iron. Cobalt content is highest in the limonite zone,Fe and Al in the ferruginous cover, and Mg and SiO2 in the saprolitic rock, followed by the saprolite.There is a marked drop within the saprolite in Fe and Al content, and a marked increase in Mg and SiO2.(There are no Al and Mg data from the early QNPH drill holes). Along the laterite profile, the saprolitezone is the thickest horizon while the ferruginous laterite is the thinnest. 28
  • 29. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectFigure.8: Agata Projects Map showing areas of Nickel Laterite Mineralization. Table 4: Average Grades of Nickel Laterite Horizons LATERITE HORIZON AVE THICKNESS (m) Ni % Co % Fe % Al % Mg % SiO2 %FERRUGINOUS LATERITE 1.48 0.66 0.07 45.38 4.16 0.49 2.83LIMONITE 2.79 1.09 0.12 44.76 2.40 1.04 5.72SAPROLITE 5.21 1.21 0.03 11.75 0.45 14.58 36.44SAPROLITIC ROCK 4.89 0.47 0.02 7.14 0.30 18.33 38.60Figure 9 illustrates the variations in the iron, aluminum and magnesium contents for the differentlaterite horizons more clearly.12.0 EXPLORATIONAll exploration work on the Agata Project carried out by the operator MRL [Philippine subsidiary ofMindoro] was under the direct supervision of James A. Climie, P.Geol., MRL President and CEO.The Agata Project MPSA denominated as MPSA No. 134-99-XIII was registered on June 19, 1999.Community information and education campaigns commenced in 1997 and have continued since thattime. 29
  • 30. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectFigure 9: Cross section Line 10100N Linegraph. It can be observed that the pronounced drop in iron and aluminum content from the limonite tosaprolite horizons coincides with the increase in magnesium content. 30
  • 31. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project12.1 MRL Exploration (1997-2000)Initial work by MRL on the Agata Project between 1997 to 2000 comprised a geological evaluationconducted by Marshall Geoscience Services Pty Ltd. It was part of a due-diligence assessment of theproperty prior to entering into a Joint Venture with Minimax. This work suggested that hydrothermalgold mineralization at Agata is related to andesitic or dioritic intrusives, that vein mineralization isrepresentative of the upper levels of a porphyry system and that there is prospectivity for skarnmineralization within limestones on the property (Marshall, 1997; Climie et al., 2000).The 1st phase of exploration activity commenced in May 1997 in the Assmicor region and consisted ofgrid establishment followed by soil geochemical survey (1,617 soil samples analyzed for Au, Ag, Cu,Pb, Zn, As), geological mapping plus selective rockchip sampling and petrographic studies.Furthermore, DOZ technologies of Quebec, Canada, interpreted a RadarSat image of the Agata area andgenerated a 1:50,000 scale interpretation of the region. In addition, MRL re-sampled by channelsampling, five test pits (ATP-1 to ATP-5) that were excavated by La Playa Mining Corporation andsubmitted 24 samples for Ni, Co and Au analysis by AAS. These pits encountered laterite thicknesses of2.48 to 9.40 meters. The composited assay values for each of the re-sampled test pits range from 0.43%to 0.94% nickel. The results are incorporated in the current soil maps (Figures 10-12).The 2nd phase of exploration activities on the Agata Projects was undertaken between June 1999 andDecember 1999. This included grid re-establishment, geological mapping within the Assmicor Prospectand American Tunnels, ground magnetic survey, soil geochemistry (50 samples), rock/core sampling,petrography and drilling of 11 holes. (Climie et al., 2000).The soil sampling survey generated widespread Cu and Au soil anomalies. Soil Cu anomalies tend to beclosely restricted to mapped intrusions at American Tunnels and Assmicor-Lao. Soil Au anomalies aremore widespread and extend into the surrounding and overlying carbonate rocks. In contrast, soil Asanomalies appear to be weakly developed over the intrusions but more strongly developed overcarbonates. The Cu and Au soil anomalies associated with the Assmicor-Lao prospect region (Figures10-11) are open to the east beneath the alluvial flood plain sediments of the Tubay River. The potentialfor an extension of the Assmicor mineralization to the immediate east beneath the Tubay Riverfloodplain is strengthened by the observation that the dikes and intrusives encountered in drilling atAssmicor dip towards the east, that porphyry-like quartz veins were encountered in drillhole DH 99-11,which lies east of the Assmicor prospect, and the evidence of a resistivity anomaly developing on theedge of the IP survey east of the Assmicor prospect.Nineteen surface channel samples were collected in the Limestone Prospect area (Figure 13). Sixteen ofthese samples yielded grades ranging from 0.02 g/t Au to 0.85 g/t Au. Three of the samples graded 2.79g/t Au over 3.7 meters, 3.77 g/t Au over 2 meters and 1.48 g/t Au over 3 meters. The channel samplesindicate a zone of anomalous gold above 0.1 g/t in rock samples that extends over an area of 100m by50m in oxidized limestone.Petrographic analyses by Comsti (1997) and Comsti (1998) reveal that the intrusive rocks at Agataconsist of alkalic, silica-undersaturated plutonic rocks. These comprise of syenites and monzonites thatdisplay varying degreees of sericitic and propylitic alteration. Potassic feldspar is a primary mineralphase in many of these rocks.An in-house ground magnetic survey was conducted in 1999 (Figure 14). The magnetic data compriseda series of semi-continuous magnetic highs, with values >40250nT, that broadly coincide with thedistribution of ultramafic rocks along the western margin of the Lao and Assmicor areas. The magneticsignature decreases gradually westward where the ultramafics are thought to be buried at deeper levelsbeneath the limestones. 31
  • 32. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectMRL drilled eleven (11) diamond drill holes into the Assmicor and Limestone prospects in 1999 andencountered significant Au intersections associated with limonitic stockworks in biotite monzodioriteintrusive. These include 18.8m @ 1.13 g/t Au and 24.2m @ 1.38 g/t Au in holes DH 99-05 and DH 99-06, respectively. The intrusives comprise larger biotite monzodiorite bodies that are cross-cut byyounger diorite dikes, plagioclase diorite dikes, biotite diorites and quartz diorites. These dikes andintrusive bodies dip predominantly eastward, suggesting that a deeper magmatic source lies to the east,possibly along the trace of the Lake Mainit splay of the Philippine Fault, beneath the alluvial floodplainof the Tubay River. Drillhole DH 99-11, collared east of the Assmicor shaft, intersected porphyry-stylequartz-magnetite veins in biotite diorite, quartz diorite and in hornblende-quartz diorite.12.2 MRL Exploration (2004-2006, and 2008)MRL undertook a third phase of exploration activity in 2004 on the Agata Project. This activityinvolved gridding, mapping and extensive grid-based pole-dipole induced polarization (IP) geophysicalsurveying along 30 east-west-oriented survey lines that extend from 7,800 mN to 13,400 mN. The IPdata were acquired by Elliot Geophysics International using a Zonge GGT-10 transmitter, a ZongeGDP-32 receiver and a 7.5 KVA generator. A total of 77.10 km of grid were surveyed by pole-dipoleIP. The dipole spacing used in the survey was 150 meters. The data were modelled by Dr Peter Elliot ofElliot Geophysics International using inversion modeling (Figures 15-16).Induced polarization (IP) surveying on the Agata Project has identified numerous IP chargeabilityanomalies that form finger-like apophyses at shallow levels, and which amalgamate into largeranomalies at deeper levels. The IP chargeability anomalies tend to strengthen with depth in the coreanomaly regions (Southern Target anomaly and Northern Target anomaly). The IP chargeabilityanomalies attain values that locally exceed 40 msecs, and routinely exceed 20 msecs on most of the IPpseudo-sections from Agata. Weaker modeled IP chargeability anomalies are associated with knownmineralization at Assmicor (10-18 msec) and in other satellite positions adjacent to the two coresNorthern and Southern target anomalies. There is an indication, from the four plan views of the IPchargeability data, that NNW to NW faults may be important in controlling the distribution and shape ofmany of the IP anomalies at Agata. Faults that lie along these trends are expected to lie in a dilationalorientation in relation to the regional stress field associated with sinistral movement on the near north-trending Philippine Fault splay.Preliminary drilling on the Agata Project was carried out between November 2, 2005 and October 28,2006. This was conducted under a joint-venture among MRL, Panoro Minerals Ltd. (Panoro), andMinimax.The prospects were highly recommended priority targets for drill evaluation as these prospects exhibitclassic stacking of geophysical, geological and geochemical features associated with Philippineporphyry copper-gold systems (Rohrlach, 2005). The preliminary drilling program was aimed to test thearea of highest chargeabilities in the North and South Porphyry Targets.Great operational difficulties were encountered in extraordinarily bad ground conditions. A total of fivedrill holes with a combined length of only 756.45 meters were completed, four of which were drilledwithin the North Porphyry Target and one at South Porphyry Target. All five holes were prematurelyterminated, not reaching target depths. The chargeability anomalies were interpreted to occur at around375m below surface (N=4) based on IP geophysical inversion models. The deepest hole bottomed atonly 251.20m, a long way from the 500-meter target.All drill holes have intersected and bottomed in strongly serpentinized ultramafics with very minimalpyrite mineralization. Dr. Peter Elliot, Consulting Geophysicist, affirmed that the serpentine was not thecause of the anomalies, and would only cause a weak IP anomaly. Drilling in such sheared ultramafics 32
  • 33. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Projectis very difficult but the targets are considered to have high potential for porphyry Cu-Au mineralizationand further drill testing using alternative drill strategies was recommended.At the Assmicor Porphyry Prospect, the porphyry-style quartz-magnetite veins with pyrite, chalcopyriteand gold mineralization intersected in 1999 drill hole 11 indicate a magmatic source to the east. Thevery strong and extensive gold and copper in soil anomalies also clearly point to an eastern magmasource, and suggest that this may be significantly mineralized. The “open” resistivity in the prospect isinterpreted as silicification associated with the postulated porphyry system (Tagura, et.al., 2005).However, the extensive IP trend at Agata suggests the main occurrence of intrusives is along the higherterrain west of Tubay River.In 2008, underground mapping and sampling of the American Tunnels prospect was undertaken. At thetime of this writing, the evaluation is still ongoing.In June 2004, Taganito Mining Corporation was selected from several interested parties and granted thenon-exclusive right to assess the nickel laterite potential of the Agata Project. Taganito carried out twophases of evaluation and reported encouraging results. Forty-eight surface laterite and rock sampleswere collected from an area of about 300 ha within a much more extensive area of nickel lateritemineralization. Nickel contents range from very low to a high of 2.09%, with most of the valuesexceeding 0.5%. Taganito considered these values to be within the range that normally cap thesecondary nickel enriched zone and have recommended a detailed geological survey and drilling.However, MRL elected to allow Queensland Nickel Phils., Inc. (QNPH) to proceed with areconnaissance drill program in 2006.QNPH, a subsidiary of BHP-Billiton, conducted reconnaissance drilling over the ANLP from January23, 2006 to April 26, 2006 at an initial drilling grid of 200m x 200m followed by in-fill drilling at 100-m grid spacing. A full report of the drilling program entitled “Evaluation of Preliminary Exploration onAgata Nickel Laterite Prospect of MRL Gold Philippines, Inc, Agusan del Norte, Philippines” wascompleted by QNPH in June 2006 and submitted to MRL immediately thereafter. A total of 35 holeswere drilled over an area of approximately 80 ha, which is 21% of the 340-hectare ANLP. The drillholelocations are incorporated in the MRL’s AGL Drillhole Location Map (Figure 17).This drilling program was subsequent to a Memorandum of Understanding (MOU) signed betweenMRL and QNPH on December 5, 2005. The MOU allowed QNPH to conduct exploration in theproperty, which also include technical review and geological mapping. It was intended to evaluate andestablish resource potential of the area and as a possible Yabulu Refinery ore source, and to present aresource model.To evaluate the potential of the ANLP for the Chinese market, MRL commissioned Denny Ambagan tore-evaluate QNPH’s data with the aim of estimating low-grade resources for the Chinese market.Ambagan is a geologist, who worked for Crew Minerals in its Lagonoy and Mindoro nickel lateriteexploration areas for three years. An in-house estimate was tabled.Both QNPH’s and Ambagan’s resource estimates are non-NI-43-101-compliant, and not hereinreleased. They served as guide in setting the exploration target for MRL’s succeeding drilling programs. 33
  • 34. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectFigure 10: Agata Soil (Gold) Map 34
  • 35. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectFigure 11: Agata Soil (Copper) Map 35
  • 36. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectFigure 12: Agata Soil (Zinc) Map 36
  • 37. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectFigure 13: Agata Rock Geochemistry Map 37
  • 38. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectFigure 14: Agata Ground Magnetic Survey Map 38
  • 39. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectFigure 15: Agata Chargeability @ L=7 39
  • 40. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectFigure 16: Agata Resistivity @ L=7 40
  • 41. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project13.0 DRILLING13.1 Exploration Targets:a. The Exploration Target (A) for the ANLP, as first released on March 13, 2007, was 2 million to 3.5 million tonnes at a grade of 0.9 to 1.2 percent nickel and 40 to 45 percent iron. This was to form the basis for an initial, small, Direct Shipping Ore (DSO) operation. The Exploration Target area was focused on the area covered by the 35 drill holes of QNPH in 2006, which covers less than 20% of the area of nickel laterite mapped at ANLP.This Exploration Target was later revised as new information was acquired from drilling and geologicalmapping activities.b. On June 20, 2007, the Exploration Target (B) area was enlarged to cover the entire ANLP as emphasis shifted from the DSO operation to establishing an on-site processing operation. It was increased to 50 to 60 million WMT at a grade of 0.9 to 1.1 percent nickel and 28 to 32 percent iron. This was based on over 90 drill holes completed and mapping data at that time. Average thicknesses and grades encountered in the previous drilling, and a wet bulk density of 1.5 tons per cubic meter were used to arrive at the revised Exploration Target (B).c. On April 30, 2008, with the release of the initial resource estimate and based on better information, the Exploration Target (C) was slightly reduced to 40-60 million WMT at a grade of 0.9-1.5% nickel and 18-28% iron. At that time, 150 holes had been completed, while the resource estimate was based on 135 holes.d. With the release of the second resource estimate on August 12, 2008, the Exploration Target (D) was revised to 30 to 40 million WMT at a grade of 0.9 to 1.5 percent nickel and 18 to 28 percent iron. This was based on more detailed mapping and the additional drilling (225 drill holes), giving more precision to the Exploration Target estimate.13.2 Drilling Phases:The first drilling program in the ANLP was conducted from February 22 to August 3, 2007 with 100holes completed and a total meterage of 2267.12. Drilling was confined to the area defined for an initialDSO operation. The drilling area related to areas covered by initial Exploration Targets A and B.A follow-up infill drilling program in ANLP was started in December 17, 2007 to May 30, 2008,completing 773.12 meters in 48 drill holes. The purpose of this exercise was to better define themineralization and extend the initial resource.From June 18, 2008 to September 26, 2008, step-out drilling was carried out with hole spacing widenedto 100m by 100m centers. Drilling totaled 3,601 meters in 225 holes. This program was aimed to drillout the greater part of Agata North resource potential based on areas covered by Exploration Targets Cand D.A total of 408 vertical holes has been completed during all phases of drilling in the ANLP, including theprevious QNPH drilling. These are located on 50m- to 100m-spaced grid. Total meterage is 7300.83with an average depth of 17.89m/per hole, a maximum of 46.6m, and a minimum of 4.35m. These drillholes are shown in Figure 17.A total of 7271 core samples composed of 6613 samples from MRL drill holes and 658 samples fromthe QNPH drill holes were analyzed and used in the resource estimate. 41
  • 42. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project13.3 Drilling Contractors:Initially, under a contract agreement, Construction and Drilling Specialists, Inc. was commissioned byMRL to conduct the core drilling at the ANLP. The contractor’s address is 1215 Mega Plaza Bldg, ADBAvenue, Corner Garnet Rd, Ortigas Center, Pasig City.Five man-portable drill rigs were used in the program namely: 1) GM-50, 2) TOHO D2-JS, 3) TS-50/G,4) TS-50/Y, and 5) YBM-01. NQ size core barrels (but not wireline) were used. Tungsten bits werenormally used but were changed to diamond drill bits whenever hard rocks/boulders were encountered.A combination of dry and wet techniques was applied, with the latter used for hard ground.CDSI was replaced by TCD Drilling Consultancy Services of Panorama Hills Subdivision, Cupang,Antipolo City to continue the infill drilling in December 2007. It drilled 48 holes with an aggregate of773.12 meters. Four man-portable drill rigs were brought in namely: 1.) TONE 1, 2) TOHO 1, 3)TOHO 2, and 4) TOHO 3. These rigs are similar to those of the previous contractor but with singletube using conventional dry drilling techniques. A modest amount of lubricants are applied for hardrocks or boulders. Due to slowness of the drilling, the services of TCD were terminated on May 30,2008.JCP Geo-Ex Services, Inc. of Camella Tierra Grande Homes, Lawaan, Talisay, Cebu continued thedrilling from June 18, 2008 to September 26, 2008. It drilled 225 holes with an aggregate of 3601.50 m.JCP used six (6) rigs for its drilling operations at ANLP. These rigs are: 1) KOKIN, 2) KOKIN-C, 3)YBM, 4) JCP 3, and 5) JCP 11, and 6) JCP 13. JCP employed similar drilling techniques as that of TCDbut accomplished it at a substantially faster rate.13.4 Drilling Rates:Drilling operations in Agata was done on one 12-hr shift/day. Overall production rate for CDSI is 3.28m/day, for TCD is 1.92 m/day and for JCP is 10.42 m/day. The following table shows the details. Table 5: Drilling Rates Holes Total Ave Daily Ave Rate/ Meterage RIG TYPE Drilled Duration Rate/ Rig CONTRACTOR Contractor /Rig Type (m/day) (m/day) (#) (day) GM-50 14 327.40 99 3.31 TOHO D2- JS 22 457.62 148 3.09 TS-50/ G 23 466.60 146 3.20 CDSI 3.28 TS-50/ Y 24 539.65 153.5 3.52 YBM-01 17 475.75 145.5 3.27 TOHO 1 9 145.47 109 1.33 TOHO 2 13 178.15 89 2.00 TCD 1.92 TOHO 3 9 160.40 77 2.08 TONE 1 17 289.10 127 2.28 JCP 11 28 472.95 46 10.28 JCP 13 40 556.10 50 11.12 JCP 3 47 782.80 78 10.04 JCP 10.39 KOKIN 16 304.20 31 9.81 KOKIN C 40 628.90 60.5 10.40 YBM 54 856.55 80 10.71 TOTAL 373 6641.74 1439.5 4.61 42
  • 43. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectFigure 17: ANLP Drillhole Location Map 43
  • 44. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project13.5 Drillhole Collars SurveySurveying of drill hole collars’ position and elevation was undertaken by MRL surveyors using a NikonTotal Station DTM-332. This, together with the topographic survey of the ANLP is tied to six NationalMapping and Resource Information Authority (NAMRIA) satellite/GPS points and benchmarks withcertified technical descriptions (Appendix 2). The Reference System used is PRS 92 or WGS 84, usedinterchangeably by mathematical conversions.Consequently, the baseline for the local gridlines is based on 51 MRL control stations. About 65,535survey points, including drill hole collars, were established with varying shot distances. These aredownloaded into the computer by seamless data transfer, imported to MAPINFO, which are then usedfor the Digital Terrain Modeling to derive the contour map. Table 6: NAMRIA Tie Points Technical Description STATION LATITUDE LONGITUDE EASTING NORTHING LOCATION SW-end corner of Sta. Ana AGN_45 9°1107.88738" 125°3339.04409" 561636.287 1015703.065 Bridge, Tubay NW-end corner of Sta. Ana AGN_46 9°1111.29480" 125°3339.28491" 561643.476 1015807.756 Bridge, Tubay AGN_48 562018.601 1019260.784 NW-end corner of Puyo AGN_153 9°1923.02761" 125°3315.95108" 560907.623 1030913.182 Bridge, Jabonga NW-end corner of Bangonay AGN_154 9°1914.68259" 125°3313.72449" 560840.077 1030656.707 Bridge, Jabonga13.6 Drilling ResultsCore drilling conducted by MRL in its ANLP drilling program totaled 373 vertical drill holes thatspanned an area of 2,200m x 1,600m with 2 other smaller areas. The 35 previous QNPH drill holes arewithin the area of the MRL drill holes. 177 drill holes were spaced at 50m x 50m plus 11 twin holes.The remaining 220 holes were drilled on 100m x 100m grid centers.The nickeliferrous horizons encountered in the drill holes are: ferruginous laterite; limonite; saprolite;and saprolitic rocks. Drilling continued several meters into the bedrock for most of the holes. Thesehorizons vary in thickness from hole to hole, and some horizons are absent in some of the holes. Forexample, 85 holes were collared on limonite, 15 holes on saprolite, and 23 holes on saprolitic rock.The drilling results indicated an average thickness of 2.79m for the limonite horizon and 5.21m for thesaprolite. This is based on the classification as discussed in Item 11.1. Though there is considerablevariation in the thickness of the different laterite horizons, the sections generated from the area show aconsistent development of the whole profile across the drilled area. However, there is considerablethinning of the profile on steeper slopes in the valleys and on the steep sides of the Western Range.There is moderate grade variation as well. These generally indicate reasonable continuity of themineralization. To illustrate, cross section 10100N is shown in Figure 18. More cross sections areshown in Appendix 3. Table 7: Average Grades of Laterite Horizons at Line 10100N Laterite Horizon Ave Thickness (m) Ave Ni % Ave Fe % Ferruginous laterite 1.66 0.68 45.68 Limonite 4.46 1.09 45.85 Saprolite 7.39 1.16 11.73 44
  • 45. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectFigure 18: Cross Section Line 10100N showing grades and thickness of laterite horizon 45
  • 46. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectThe average nickel and iron grades of the limonite horizon (1.09% Ni and 45.85% Fe) are robust.The average grade of the underlying saprolite horizon (1.16% Ni) is diluted by internal boulders andun-lateritized blocks or "floaters".14.0 SAMPLING METHOD AND APPROACHThe ANLP QA/QC Procedures for the whole ANLP drilling program was set up by MRL geologistsand was followed by all personnel involved in all stages of the program (Appendix 4). This wasadapted from the QA/QC Protocols of QNPH for the 2006 drill program carried out on the ANLP.Periodically, the protocols were evaluated and improvements implemented. The core handling,logging and sampling procedures applied in the program are briefly described below.It is a standard procedure that core checkers, who are under the supervision of MRL technicalpersonnel, are present on every drill rig during operation. This is to record drilling activities fromcore recovery, core run, pull-out and put-back, casing and reaming at the drill site. Once a core boxis filled, it is sealed with a wooden board then secured with a rubber packing band. This is placed ina sack and manually carried to the core house some 300 - 1000 m from the drill area.Core logging was carried out in the core shed by MRL site geologists. For standardization of loggingprocedures, the geologists are guided by different codes for laterite horizon classification, weatheringscale, boulder size, and color.After logging, the geologist determines the sampling interval. Core sampling interval is generally atone (1) meter intervals down the hole, except at laterite horizon boundaries, when actual boundariesare used. The sample length across the boundaries is normally in the range of 1.0 ± 0.30m to avoidexcessively short and long samples. In the saprolitic rocks and bedrock layers, some sample intervalshave lengths greater than 1.30 meters to a maximum of 2.00 meters. Table 8 lists the frequency ofsampling for each length group. Table 8: List of Sampling Intervals Length Freq. # (MRL) Freq. # (QNPH) <1m 1580 89 1m 3449 487 ≤1.30m 1279 76 >1.30m 305 6All available cores were sampled, except for 2 intervals in drill hole AGL 2007-46, which wasmostly composed of schists. Nineteen (19) intervals, with an aggregate length of 15.90 meters, werenot sampled due to core loss.A total of 6,613 samples were collected by MRL from the drill cores. These samples cover an area ofapproximately 235 hectares.Core recovery was determined by measuring the actual core lengths, then comparing to the core run.From a total core drilled meterage of 6,641.74 m (MRL drilling), 6,145.91 m were recovered or92.53%. Core recovery is generally high but it varies in the different soil horizons wherein recoveryis generally highest within the limonite zone and lowest in the bedrock. There were 18,851 core runs,65.91% of which had 100% recovery.For the different rig types, the JCP 11 of JCP Drillers produced the highest recovery (97.53%) whilethe lowest is the TOHO D2-JS (86.11%). The details of recovery averages are shown in the tablebelow. 46
  • 47. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project Table 9: Core Recovery Percentages Recovery # % % Rec/ Laterite Zone % Rec Rig Type % Rec Contractor Contractor (%) RUNS FREQ. F LATERITE 91.48 0 - 10 % 113 0.60 GM-50 87.62 LIMONITE 94.49 10 - 90 % 4197 22.26 TOHO D2-JS 86.11 SAPROLITE 92.60 90 - 99 % 2116 11.22 TS-50G 89.61 CDSI 88.23 SAP ROCK 92.70 100% 12425 65.91 TS-50Y 87.55 BEDROCK 91.00 TOTAL 18851 100.00 YBM-01 90.13 TONE 1 92.75 TOHO 1 95.15 TCD 92.94 TOHO 2 92.07 TOHO 3 92.44 JCP 11 97.53 JCP 3 94.15 JCP 13 95.03 JCP 95.16 KOKEN C 94.16 KOKEN 96.74 YBM 95.00 OVERALL 92.5315.0 SAMPLE PREPARATION, SECURITY AND ANALYSES15.1 MRL ProtocolsAs in all stages of the program, the ANLP QA/QC Procedures (Appendix 4) were diligentlyfollowed during the sample preparation and security procedures. The analyses for the first 2,689 coresamples were performed by McPhar Geoservices (Philippines), Inc. (McPhar), which followsinternationally-accepted laboratory standards in sample handling, preparation and analysis.For the rechecking of the integrity of laboratory assays, independent consultant Dr. Bruce D.Rohrlach, also a qualified person, provided MRL geologists with sampling procedures in May, 2007after several site visits. This was incorporated into the QA/QC Procedures.Following the recommendations of another qualified person, F. Roger Billington in May, 2008, thesampling protocols were slightly modified. The most important modification was the insertion ofpulp rejects in the same batch as the mainstream samples. This is to ensure that all conditions inassaying are similar, if not completely the same for both the mainstream and check samples. Inaddition, the next 3,924 core samples were sent to Intertek Testing Services, Phils., Inc. (ITS) foranalysis using the XRF analytical method.The ITS Phils. facility is among Intertek’s global network of mineral testing laboratories. It provideshigh quality assay analysis of mineral samples for nickel deposit exploration projects. Intertekmineral testing laboratories implement quality protocols. This is discussed in Item 15.2.2.15.1.1 MRL Core SamplingDuring the first two phases of drilling, whole core sampling was conducted for 132 drill holes, and17 holes were split-sampled. The purpose of assaying the whole core was because of the relativelysmall core diameter, and to achieve better precision by assaying the largest possible sample as wellas to avoid any bias that could occur during splitting and quartering of the core.Core splitting was manually performed. The core was laid on a canvass sheet, pounded and crushedby use of a pick, thoroughly mixed, quartered, then the split sample is taken from 2 opposite quarterportions. The other 2 quarters are combined and kept as a duplicate in a properly-sealed and labeled 47
  • 48. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Projectplastic bag and arranged in core boxes according to depth. The duplicates are stored in the corehouse at the Agata Base Camp, some 1.5 km from the drill area.For the third drilling phase, split-sampling was conducted to ensure the availability of referencesamples in the future (except for 45 drill holes for which the entire core was sampled). The coreswere cut in half using either a core saw or spatula. The remaining half is stored in properly-labeledcore boxes.The sampling interval is marked in the core box by means of masking tape/aluminum strip labeledwith the sampling depth. The sample collected is placed in a plastic bag with dimension of 35centimeters (cm) x 25cm secured with a twist tie. The plastic bag is labeled with the hole number andsample interval.After the samples are collected, they are weighed then sun-dried for about 5 hours and weighed againbefore final packing for delivery to the laboratory. In cases where there is continuous rain, thesamples are pan-dried for 5-6 hours using the constructed drying facility or wood-fired oven.Commencing with batch 2008 AGL 18, only the sun-drying was practiced.The prepared samples were transported manually into the base camp at Barangay E. Morgado. Thesewere then checked and inspected for completeness of sample tags and for any damage to the samplebags. Sample tags were then provided by Mcphar. For the samples sent to Intertek, MRL prepared itsown sample tags. The samples were placed in a rice sack and then in a box within a wooden crate toensure the security of the samples during transport.For all of the 2007 cores and batch 2008 AGL 10, the prepared samples were sent to the McPharlaboratory in Makati City, Metro Manila via a local courier (LBC Express). The samples werecarefully packed in craters with proper labels. This was accompanied by an official Submission Formand a Courier Transmittal Form. The crates were transported to Butuan City where LBC Expressbranches are present. The transportation of the crates containing the samples is always accompaniedby designated MRL staff. The courier received the package and provided MRL with receiptsindicating contents. For batches 2008 AGL 1, 3 and 6, the samples were delivered by MRLpersonnel to McPhar’s sample preparation facility in General Santos City. The assaying wasperformed in their laboratory in Makati City.Counting and cross-checking of samples vis-à-vis the McPhar Submission Form were performed byMcPhar supervisors. Notice is given to MRL if there are discrepancies, otherwise it is understoodthat sample preparation and analysis will be carried out as requested. A sample tracking, qualitycontrol, and reporting system was maintained between MRL and McPhar.For batches 2008 AGL-13, 16, 18 and onwards, the core samples were delivered to Intertek’s samplepreparation facility in Surigao City. Likewise, checking of samples against the list was done uponsubmission. Once prepared, Intertek-Surigao sent the samples to their assay laboratory in MuntinlupaCity, Metro Manila.The core sampling and logging facility was under the supervision of MRL geologist or miningengineer at all times. This facility is within the drill area and is about 300-1000 m from the drill pads.The activities in the other core storage facility at Bgy. E. Morgado base camp was likewisesupervised by either a geologist or mining engineer at all times. A civilian guard secured the basecamp premises during the night.The ANLP drilling was directly under the supervision of James A. Climie, P. Geol., a geologist andCEO of Mindoro. 48
  • 49. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project15.1.2 Rechecking of Laboratory ResultsIn addition to stringent sampling protocols, QA/QC procedures were also employed following Dr. B.Rohrlach’s and F.R. Billington’s (MRL independent consultants) guidelines. Standard referencematerials, field duplicates, coarse rejects and pulp rejects were analyzed to check thevalidity/accuracy of the laboratory results. A total of 809 analyses of check samples were collected.The details are shown in Table 10. Selection of check samples are spread throughout all holes and invarious laterite horizons.The field duplicates totaled 223 or 3.37% of the 6613 mainstream core samples of MRL. Normally, 1in every 20 core samples is duplicated. The duplicate sample is selected to ascertain that the fullrange of different laterite horizons is systematically covered. The samples were selected to cover thefull range of Ni grades at Agata, and to extensively cover the different stages and spatial distributionof the drill program, so as to provide a representative check on the reliability of the original samplesplitting process undertaken by MRL at the drill site. Its distribution for each laterite horizon isshown in Table 11. Originally, the splitting method is the same as for obtaining duplicates forstorage but 1/4 part of the prepared sample represents the field duplicate while the 3/4 part is theregular sample. For the half-core sampling, the field duplicates were taken by cutting the remaining½ core into 2. These samples were sent to the laboratory in the same batch and were treated in thesame way as the mainstream core samples.A set of 69 coarse reject samples, comprising 1.04 % of the 6613 core samples, were submitted tothe laboratory where the original samples were analyzed for resampling and assaying. Resamplingwas done by taking a duplicate split from the coarse rejects and then placing it back into the assaystream for analysis. Again, as in all duplicates, the submitted samples were chosen to cover thenatural range of assays. The reanalysis of the coarse reject samples was undertaken as an internalcheck on the crushing and sub-sampling procedures of the laboratory to ensure that the samplestaken for analysis were representative of the bulk sample.There were two sets of pulp rejects sent for re-assaying. One was sent to the laboratory where it wasoriginally analyzed. A total of 152 pulp rejects were sent under this category. The other set was sentto an umpire laboratory wherein a total of 163 pulp rejects were analyzed. This is to establishreproducibility of analysis and determine the presence or absence of bias between laboratories.Samples were taken on all of the different laterite horizons. Originally, pulp rejects were collectedand sent in separate batches. Starting on June 2008, pulps were inserted together with the mainstreamsamples (1 in each set of 40 samples). The pulp rejects for inter-laboratory checking were sent at alater date.The umpire laboratory for the 2007 drilling program was Intertek in Jakarta. Selected pulp sampleswere sent by MRL to Intertek’s Manila office, after which they forward the samples to Jakarta inIntertek Cilandak Commercial Estate 103E, JI Cilandak KKO, Jakarta 12560. Intertek (Jakarta) hasacquired an ISO 17025 2005 accreditation from KAN (National Accreditation Body of Indonesia)denominated as LP 130_IDN. This is valid until 2010. With the change of primary laboratory toIntertek Phils., Mcphar becomes the umpire laboratory. In 2008, Mcphar samples/assays werechecked by Intertek Phils. and vice-versa.Nickel standards or certified reference materials (CRM) are routinely inserted to the batches of coresamples sent for assaying. This is done as a double check on the precision of the analyticalprocedures of Mcphar and Intertek on a batch by batch basis. The standards, which have knownassay values for Ni, were provided by Geostats Pty Ltd of Australia in pulverized (pulp) formweighing about 5 grams contained in 7.5cm X 10cm heavy duty plastic bags. Originally, one (1)standard sample is inserted for every batch of 40 to 45 samples. However, there were some standards 49
  • 50. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Projectinserted in smaller intervals of 25-35 samples. Starting with Batch 2008 AGL-18, one standardsample was included in every set of 40 samples. In all, 202 standards equivalent to 3.05 % of thecore samples were used.Twelve types of standards were used with grade ranging from 0.11% to 2 % nickel. Each one comeswith a certificate that shows the accepted mean value and standard deviation, which are available inthe website of Geostats (www.geostats.com.au). The specific nickel standards and the frequency ofusing each one are listed in Table 12. Table 10: Numbers of Core, Reference and Recheck Samples Analyzed LAB LAB PULP COARSE Total Drill ASSAYED GBM FIELD PULP DISPATCH NO RECHECK SPLIT DUP (#) REJECT (Check hole # CORE (#) (#) DUP (#) DUP (#) (#) (#) (Interlab) (#) Spl) 2007 AGL-01 6 134 14 3 6 1 3 1 28 2007 AGL-02 6 178 17 4 9 3 1 2 36 2007 AGL-03 6 183 18 4 9 1 4 2 38 2007 AGL-04 6 185 18 4 9 2 2 2 37 2007 AGL-05 7 220 23 5 11 1 4 2 46 2007 AGL-06 7 189 19 4 10 2 3 2 40 2007 AGL-07 6 117 13 3 6 2 1 2 27 2007 AGL-08 7 141 15 3 7 1 5 1 32 2007 AGL-09 5 109 11 4 6 1 2 2 26 2007 AGL-10 7 129 11 3 7 2 5 1 29 2007 AGL-11 7 150 16 3 8 1 5 1 34 2007 AGL-12 6 109 11 2 7 1 4 2 27 2007 AGL-13 9 127 12 3 7 2 5 1 30 2007 AGL-14 4 46 5 1 3 1 4 1 15 2007 AGL-15 11 204 20 4 12 3 6 2 47 2008 AGL-01 4 81 8 2 2 2 1 0 15 2008 AGL-03 7 127 13 5 3 2 0 3 26 2008 AGL-06 8 143 15 5 3 0 4 2 29 2008 AGL-10 7 117 13 4 3 2 1 0 23 2008 AGL-13 6 104 5 7 4 2 0 0 1 19 2008 AGL-18 16 215 8 14 12 6 12 14 2 68 2008 AGL-19 5 124 6 8 3 3 4 2 2 28 2008 AGL-20 8 139 7 8 4 3 4 7 2 35 2008 AGL-21 9 174 10 11 4 5 4 5 4 43 2008 AGL-22 5 77 6 6 2 2 2 1 1 20 2008 AGL-23 4 86 6 5 2 2 2 3 0 20 2008 AGL-24 7 115 12 8 3 3 3 5 1 35 2008 AGL-25 7 157 8 11 4 4 4 4 1 36 2008 AGL-26 10 228 19 17 6 6 6 6 1 61 2008 AGL-28 5 132 7 9 5 5 4 3 1 34 2008 AGL-29 6 156 9 10 3 3 4 2 0 31 2008 AGL-30 8 143 8 10 4 4 3 8 3 40 2008 AGL-31 6 116 7 8 3 3 4 4 1 30 2008 AGL-32 7 103 5 8 3 3 2 5 2 28 2008 AGL-33 9 149 8 10 4 4 4 6 0 36 2008 AGL-34 7 121 6 8 3 3 3 3 2 28 2008 AGL-35 16 274 15 18 8 7 8 5 1 62 2008 AGL-36 1 21 1 1 1 1 1 5 2008 AGL-37 15 261 14 17 8 5 6 2 3 55 2008 AGL-38 24 295 14 20 9 5 7 0 1 56 2008 AGL-39 20 217 18 15 13 5 10 0 1 62 2008 AGL-40 23 243 18 18 13 6 12 3 7 77 2008 AGL-42 23 274 15 20 16 6 13 14 2 86 QNPH Holes 35 658 61 61 50
  • 51. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project Table 11: Frequency of Check Sampling per Laterite Zone Field Pulps Pulps Coarse Laterite Horizons Duplicates (External) (Internal) Rejects Ferruginous Laterite 32 24 18 19 Limonite 64 33 27 15 Saprolite 78 48 51 11 Saprolitic Rock 31 39 38 20 Bedrock 18 19 18 4 TOTAL 223 163 152 69 Table 12: Frequency of Using Nickel Reference Materials Type of Standard Mean Ni Value (%) Stdev No. of Times Used GBM 305-9 0.25 0.014 21 GBM 307-13 2.00 0.090 16 GBM 901-1 0.80 0.050 38 GBM 903-2 0.11 0.005 25 GBM 905-13 1.51 0.070 23 GBM 906-8 0.55 0.030 44 GBM 398-4 0.41 0.020 5 GBM 900-9 1.16 0.070 5 GBM 901-2 0.88 0.060 8 GBM 906-7 0.56 0.030 6 GBM 996-1 1.27 0.070 5 GBM 302-8 1.08 0.070 6 TOTAL 20215.2 Laboratory Protocols15.2.1 McPhar Geoservices (Phil.), Inc.McPhar carries out high quality sample preparation and analytical procedures. It is an ISO 9001-2000-accredited laboratory and has been providing assay laboratory services to both local andforeign exploration and mining companies for more than 35 years. It served as the primarylaboratory for the ANLP drilling. Its address is 1869 P. Domingo St., Makati City, Metro Manila.Mcphar’s sample preparation procedures and analytical processing are illustrated in the flowchartsbelow. (Figures 19 and 20) Each sample is analyzed for nickel (Ni), cobalt (Co), iron (Fe),magnesium (Mg), aluminum (Al), silica (SiO2) and some samples for phosphorous (P).The Ni, Co, Fe, Mg and Al are assayed by dissolving a 25g charge with a two acid digest using hothydrochloric (HCl) and nitric acid (HNO3) and reading the results by Atomic AbsorptionSpectroscopy (AAS). The SiO2 and P are analyzed by gravimetric process.McPhar has its own Quality Assurance / Quality Control (QA/QC) program incorporated in theirsample preparation and analyses procedures. Every tenth sample and samples with "anomalous"results, i.e., samples having abnormally high or low results within a sample batch, are routinelychecked. This is done by preparing a solution different from the solution on the regular sample takenon the same pulp of a particular sample. 51
  • 52. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectFigure 19: Flowchart of Mcphar’s Sample Preparation for LateriteFigure 20: McPhar’s Laterite Analysis Procedure Flowsheet 52
  • 53. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project15.2.2 Intertek Testing Services Phils., Inc.Intertek Testing Services Phils., Inc. is among Intertek’s global network of mineral testinglaboratories. It provides quality assay analysis of mineral samples for nickel deposit explorationprojects. Measures are taken by Intertek mineral testing laboratories to ensure that correct methoddevelopment and quality protocols are in place to produce good quality results.Their sample preparation procedure is illustrated in the following flowchart. (Figure 21)Each sample is analyzed for nickel (Ni), cobalt (Co), iron (Fe), magnesium (Mg), aluminum (Al),silica (SiO2), CaO, Cr2O3, K2O, MnO, Na2O, P2O5, and TiO2. Whole rock analyses are doneusing X-ray Fluorescence. The samples are fused using lithium metaborate. XRF analysis determinestotal element concentrations that are reported as oxides.For its internal QAQC, Intertek performs repeat analyses plus split sample analyses in every 15-20samples. Furthermore, on the average, one standard reference material is inserted in every 40samples, and one blank in every 60 samples.Figure 21: Intertek’s Sample Preparation Procedure for Laterite 53
  • 54. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project15.3 Results of Internal Check Assays (McPhar and Intertek)The laboratories of Mcphar and Intertek in Manila have a Quality Assurance/Quality Controlprograms incorporated in their sample preparation and analyses procedures.The three laboratories regularly conduct duplicate analysis of Ni and other elements as a check onanalytical reproducibility. Repeats are routinely conducted on all elements being analyzed and aretypically on every 10th sample for McPhar and on every 20th sample for Intertek. All in all there are504 (7.62%) repeat analyses that are spread evenly throughout the entire database.Figure 22 shows excellent correlation for all of the elements analyzed with R² = 0.99, and Ni-1 , Ni-2correlation being 0.999. The Relative Percentage Errors (RPE) are all below 1% as shown in Table13, with consistent and high precision repeatability. Negative values indicate that the repeat analysisis higher. Table 13: Relationship of Original and Repeat Analyses Ni % Co % Fe % Al % Mg % SiO2 % McPhar RE % 0.05 -0.26 -0.15 -0.08 -0.28 0.03 Orig = Recheck 98 204 4 98 23 16 Orig < Recheck 84 38 146 94 137 120 Orig > Recheck 90 30 122 80 112 136 Intertek RE % -0.06 0.36 0.09 -0.04 0.33 0.01 Orig = Recheck 15 74 0 5 0 2 Orig < Recheck 100 73 98 107 105 115 Orig > Recheck 117 85 134 120 127 115Figure 22: Graphs of Laboratory Internal Recheck Assays 54
  • 55. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectPlots of rechecks done by McPhar and Intertek laboratories showing excellent correlation, R² = 0.99 on Ni, Co,Fe, Mg, Al and SiO2. McPhar reanalyzes every 10th sample while Intertek reanalyzes every 20th. Bothlaboratories run rechecks on samples with anomalous nickel values.Another internal control of Intertek Laboratory is the analyses of 267 split sample representing 6.8%of the 3,924 mainstream samples. The plotted original values versus split sample assay values inFigure 23 show excellent correlation for all element tested with R² = 0.99.Figure 23: Graphs of Laboratory Internal Split Sample Analysis 55
  • 56. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectPlots of split sample analyses carried out by Intertek laboratory show excellent correlation, R² = 0.99 on all theelements tested.15.4 Results of External Check Assays (MRL)MRL has also set up its own QA/QC protocols vis-à-vis the laboratories’ sample preparation andanalytical procedures, which the author has observed in the field.15.4.1 Nickel StandardsAs a double check on the precision of the analytical procedures of both Mcphar and Interteklaboratories, nickel standards are being inserted by MRL for every 45 samples on the average. Atotal of 202 nickel standards, representing 3.06 % of the 6613 core samples were sent. Thesestandards were purchased from Geostats Pty. Ltd of Australia. Twelve types of standards were usedfor the whole drilling course to date, with grade ranging from 0.11 to 2.00 % nickel.Figure 24 shows graphical representations of the standards for nickel. The acceptable limits of eachstandard is shown in red shaded area with the red line indicating the mean value and the top andbottom of the shaded area as the 2 standard deviation upper and lower limits.Generally, the external standards submitted by MRL fell within two (2) standard deviations from theaccepted mean. Only 13 out of 202 standards plotted outside the acceptable range, seven of whichare the standard GBM 903-2. Both laboratories gave results outside the acceptable range for thisparticular standard. The source of error may be the laboratory analysis or the type of standard. Insummary, the external standards suggest that the analyses in both laboratories are suitably precise. 56
  • 57. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectFigure 24: Graphs of Nickel Standards Assays. 57
  • 58. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectPlots of the assays of the inserted nickel standards vis-à-vis the acceptable limits.In addition to inserting nickel standards, a check on the sample preparation and analysis proceduresof Mcphar and Intertek was done by MRL by sending check samples for assaying, to both Mcpharand Intertek. These samples include field duplicates, coarse rejects and pulp rejects.15.4.2 Field DuplicatesThe analytical reproducibility of field duplicate samples is a measure of the representativity of theoriginal split of the sample, a check on the reliability of the sample reduction procedure (splitting)undertaken by MRL at the drill rig site.The field duplicates were sent together with the regular core samples for assaying except for 5samples that were dispatched separately (Batch 2008 AGL-16). A total of 223 core field duplicates(3.37%) were analyzed. Of these, 134 were analyzed by Mcphar (1 in 20 cores) while 89 duplicateswere by Intertek (1 in every 40 samples).In analyzing the correlation between the original and duplicate sample, the relative difference (RD)was computed as follows: (a – b) RD = ________ x 100 aWhere: a - is the original sample analyzed at McPhar; B - is the duplicate sample analyzed at McPhar; and RD - is the percentage relative difference. 58
  • 59. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project Table 14: Relationship of Field Duplicate and Original Assays McPhar Ni % Co% Fe% Al% Mg% SiO2,% RD % -1.72 1.14 0.16 -0.72 -0.84 -1.54 Orig = Recheck 18 66 0 58 9 1 Orig < Recheck 77 36 70 26 62 79 Orig > Recheck 39 32 64 50 63 54 Intertek RD % 0.62 -0.04 -0.94 -0.70 0.75 1.54 Orig = Recheck 13 18 0 2 0 0 Orig < Recheck 38 34 41 41 45 50 Orig > Recheck 38 37 48 46 44 39Table 14 presents the results. A value of zero means the two values are equal, a negative valuemeans the recheck is higher, while a positive value means the original is higher. Another measure ofcorrelation is the R2, shown in each graph.All RDs are within highly acceptable limits, with values ranging from 0.16% to 1.72% (absolute) forMcphar and 0.04% to 1.54% for Intertek. A slight bias was observed for Al wherein more of theoriginal assays are lower than the assays for field duplicates.High correlation can be observed in Figure 25, the graphical representation of the procedure, with R²ranging from 0.956 to 0.997 for the six different elements. These plots indicate that the splittingprocedure of MRL was acceptable.Figure 25: Graphs of Field Duplicate Assays 59
  • 60. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectPlots of the field duplicate samples analyzed show good correlation, with R² ranging from 0.956 to 0.997 forthe six different elements.15.4.3 Coarse RejectsThe reanalysis of the coarse reject samples was undertaken as an internal check on the crushing andsub-sampling procedures of McPhar to ensure that the samples taken for analysis were representativeof the bulk sample. 60
  • 61. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project Table 15: Relationship of Coarse Rejects and Original Assays McPhar Ni % Co % Fe % Al % Mg % SiO2 % RE % 0.69 -0.38 2.20 -3.23 -1.44 -0.68 Orig = Recheck 3 14 0 3 1 0 Orig < Recheck 15 9 11 19 19 15 Orig > Recheck 11 6 18 7 9 14 Intertek RE % -0.10 0.87 -0.07 0.07 0.13 -0.08 Orig = Recheck 0 10 0 0 0 0 Orig < Recheck 22 13 25 16 20 20 Orig > Recheck 18 17 15 24 20 20 (a – b) RE% = _____________________ x 100 0.5 * (a + b)Where: a - is the original sample analyzed; b - is the duplicate sample analyzedThe Relative Percentage Error (RE%) for Ni, Co and SiO2 is well below 1% showing consistent andhigh precision repeatability (Table 15). RPEs for, Fe, Al and Mg are below 5% showing relativelyhigh repeatability. Negative values indicate that the repeat analysis is higher. This relationship isfurther illustrated in Figure 26.Figure 26: Graphs of Coarse Duplicate Assays 61
  • 62. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectGraphs showing the excellent correlation between original assay values and reanalysis of the coarse rejectsamples for all elements analyzed by Intertek (R² = 0.99), and Co shows good correlation (R² = 0.98). There isalso excellent correlation in samples from Mcphar where Fe, Mg and SiO2 have R² = 0.99, while goodcorrelation was observed for Ni, Co and Al (R² = 0.98).15.4.4 Pulp Rejects Analyzed by Primary LaboratoryA total of 30 of the McPhar pulp rejects during the first and second drilling phases were re-sampledand analyzed. This represents 1.07% of the 2,793 core samples. These were selected from previously 62
  • 63. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Projectsubmitted batches and were selected to cover a range of sample grades, a range of horizons and arange of holes from the core drilling programs, so as to be representative of all the samples.The method of pulp reject sampling for Intertek Laboratory was modified in June 2008. Starting withbatch 2008 AGL-18, pulp rejects were randomly selected one in every set of 40 and were pre-numbered. These pulps were inserted to its assigned numbers right after sample preparation and wereanalyzed in the same batch as its source. A total of 122 pulp rejects (3.11 %) were inserted out of3,924 samples analyzed in Intertek.The duplicate pulp analyses were conducted to test for homogeneity of the pulps generated by thetwo laboratories. Insufficiently milled samples will lead to multiple assaying of pulps with poorprecision (i.e. poor repeatability). Inversely, agreement between assays of duplicates of the pulpwould indicate that the milling procedure in the laboratory was efficient and generated a suitablyhomogeneous pulp.As shown in Figure 27, there is good correlation between the assays of pulp rejects and the originalvalues. R² ranges from 0.974 -0.999, which means that pulps generated are consistent.Figure 27: Graphs of Pulp Rejects analyzed by Primary Laboratory 63
  • 64. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectThe graphs of duplicate pulps analyzed by both McPhar and Intertek show good correlation with R² rangingfrom 0.974 -0.999 . This procedure proves that pulps generated by the two laboratories are homogenous.15.4.5 Pulp Rejects Analyzed by Umpire LaboratoryA total of 54 pulp rejects generated by Mcphar in 2007 were sent by MRL to Australian-ownedIntertek Testing Services [ITS], an internationally reputed laboratory in Jakarta, Indonesia for assay.Intertek-Jakarta is the only ISO 17025-accredited mineral laboratory in Indonesia.The analytical procedure conducted by Intertek was by the use of XRF. The results show a highcorrelation between McPhar’s original assay and that of Intertek for the pulps.For 2008, six pulp rejects generated by McPhar were sent to Intertek Phils. for cross analysis, while103 pulp rejects representing 2.62 % of pulps from Intertek were sent to Mcphar. Figure 28 showsthe graphs of the inter-laboratory duplicate analyses. 64
  • 65. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectFigure 28: Graphs of Pulp Rejects Analyzed by Umpire LaboratoryMcPhar original results plotted against Intertek rechecks. The inter-laboratory agreement on the pulp sample ishigh (R² = 0.994 for Ni). Intertek original results has a good correlation with Mcphar rechecks with R2 rangingfrom 0.93 – 0.98. 65
  • 66. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectIn the writer’s opinion the sampling methods performed by MRL, and their implementation are ofacceptable standards. Assays performed at the McPhar and Intertek in Metro Manila, are also ofacceptable standards. Variations encountered by the McPhar and Intertek QA/QC program on theAgata samples were within acceptable limits.16.0 DATA VERIFICATIONThe writer, in his visits to the field, drill sites and Manila Office of Mindoro carried out dataverification. The actual drilling, core handling and sampling activities were observed during the firsttwo visits in July 2007 and January 2008. During these observations, the author observed how theMRL staff use/complete the Drilling Activity, Borehole Recovery and Sample Preparation sheets.The author also evaluated the security of the cores/core boxes in the storage facility at Bgy. E.Morgado MRL Camp during and after the drilling activities.On all three field visits, drill hole collars were viewed and the locations of selected holes wereverified by use of a Magellan GPS. The location and general topography of the area were likewiseexamined during the visits. Furthermore, a comparison was made between the generated topographicmap and a Google Earth image of the site. Both checks confirm the MRL data. Three of theNAMRIA tie/reference points mentioned in Table 6 were sighted along the National Highway.The datasets provided by Mindoro were also checked and verified by comparing a random portionagainst original field sheets and official Certificates of Analytical Results. Selected core trays werevisually inspected against the logs. In addition, the core photos were viewed and compared with thecross sections showing laterite horizons generated by MRL. The lithology was checked in the fieldand in the drill cores. The digital file was checked for logical errors or data entry errors. There were afew but very minor errors found.The random checks made in the field corroborate the acceptable quality of the data. As a further test,the author collected twelve field duplicate samples and sent them to the same laboratory where theywere originally assayed. Five samples come from the limonite horizon, six are from the saprolite andone from the saprolitic rock horizon. The following table and figure show the results and thecorrelation vis-à-vis original MRL assay values. Table 16: Results of Independent Check on Drill Core Assays MRL DMC MRL DMC MRL DMC MRL DMC MRL DMC HOLE ID FROM TO RUN Ni % Ni % Co % Co % Fe % Fe % Al % Al % Mg % Mg % AGL 2008-281 1.00 2.00 1.00 1.46 1.43 0.09 0.09 38.94 39.75 2.45 2.64 1.07 1.13 AGL 2008-355 2.00 3.00 1.00 1.02 0.91 0.07 0.07 30.47 31.55 2.57 2.61 2.28 1.44 AGL 2008-175 2.60 3.45 0.85 1.59 1.58 0.05 0.05 23.32 23.60 0.74 0.66 10.51 10.32 AGL 2008-194 6.00 7.25 1.25 0.92 0.95 0.03 0.03 15.22 15.89 0.71 0.69 12.93 12.64 AGL 2008-174 3.40 4.20 0.80 1.31 1.35 0.03 0.03 14.45 15.25 0.46 0.45 15.57 15.63 AGL 2008-297 8.00 9.00 1.00 1.27 1.25 0.14 0.13 52.05 50.62 3.88 3.36 0.36 0.42 AGL 2008-299 1.00 2.00 1.00 1.20 1.32 0.14 0.13 47.57 44.50 1.82 1.69 2.75 3.89 AGL 2008-355 2.00 3.00 1.00 0.87 0.92 0.03 0.03 14.24 14.64 0.52 0.55 15.89 15.65 AGL 2007-17 27.00 28.00 1.00 1.33 1.31 0.02 0.02 6.38 8.14 0.11 0.21 15.02 17.24 AGL 2008-135 5.55 6.45 0.90 1.03 1.12 0.12 0.11 50.10 50.73 2.46 2.12 0.71 0.77 AGL 2008-74A 17.40 18.40 1.00 0.46 0.51 0.01 0.01 5.40 6.07 0.15 0.16 14.66 15.43 AGL 2008-14A 13.55 14.85 1.30 0.80 0.97 0.02 0.02 8.48 10.20 0.16 0.19 14.53 15.15* DMC - Dallas M. Cox 66
  • 67. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectFigure 29: Comparison of Independent Checks and MRL AssaysThe graphs show good correlation between the MRL assays and that of the author’s samples. This isattested by the values of the coefficient of determination R2, which range from 0.947 for nickel to0.996 for iron.The MRL QA/QC sampling and results were analyzed to enhance the degree of confidence on theassay dataset. The details of the laboratory QA/QC programs and check assaying procedures andresults are presented in Item 15.The writer has verified drill hole locations, sampling and assay procedures, examined mineralizedmaterial in the field and in drill core, as well as the geological and assay databases during his varioussite visits in the Agata Project and meetings with MRL staff. With these factors, as well as theevaluation of the results of assay rechecking, the writer is satisfied that all data can be relied upon.17.0 ADJACENT PROPERTIESThe Tapian-San Francisco and Tapian Main properties have high potential for the discovery of bothporphyry Cu-Au style mineralization at depth and epithermal style mineralization at shallower levels. 67
  • 68. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project17.1 Tapian-San Francisco Property:The Tapian-San Francisco property comprises claim blocks under one MPSA, two ExplorationPermits and two EP Applications (MPSA-033-95-X, EP No. 016-XIII, EP-022-XIII, EPA-106-XIII,and EPA-088-XIII). It has very high potential for the presence of a porphyry Cu-Au system on theproperty associated with extensive IP chargeability anomalies that underlie surficial zones of high-resistivity, widespread Cu and Au anomalism, surface artisanal workings, widespread hydrothermalalteration, and mineralization. This is located in extremely favorable structural location near thePhilippine Fault, cut by cross-faults extending from Boyongan and Bayugo porphyry Cu-Au deposits8km to NE. (Figure 30)17.1.1 Gold Hill [C5]Gold Hill Target demonstrates a crude circular-shaped strong chargeability anomaly covering 600mby 500m that is probably part of a much more extensive chargeability anomaly [sulphides] at depth.It is capped by resistivity anomaly. It is underlain by andesitic volcanics with limestone and intrusivedikes and is proximal to a large intrusive complex. Prevailing alteration is pervasive hightemperature propylitic alteration with areas of strong argillic alteration [and phyllic?].This is an area of historic artisanal gold mining that contains abundant epithermal Au-Cu showingsand high-grade, massive sulphide/precious metal prospect and has coincident strong Cu-Au-arsenic(As)-Pb-Zn soil anomalies.17.1.2 Cantikoy (C6)Cantikoy Target exhibits a crude “pear-shaped” strong chargeability anomaly over 600m by 500mthat is probably part of a much more extensive chargeability anomaly [sulphides] at depth. Further, itis capped by resistivity anomaly. It is underlain by andesitic volcanics with multi-phase intrusivestocks and dikes. High temperature propylitic alteration with structurally-controlled zones of intensephyllic alteration and localized potassic alteration are prevalent. It contains overprinting epithermalmineralization as well as porphyry-related Cu-Au mineralization. The latter was located in severalareas including a trench of 25m at 1% Cu and 0.5 g/t Au. This is supported by extensive strongcoincident soil Cu-Au-Zn soil anomalies.17.1.3 Canaga (C9)An arcuate-shaped strong chargeability anomaly over 400m by 300m, that is probably part of a muchmore extensive chargeability anomaly [sulphides] at depth and flanked by resistivity anomalies,characterizes the Canaga Prospect. Its rock suite includes dominantly recrystallised limestone andandesitic volcanics with high-temperature propylitic alteration. Multi-phase intrusive stocks anddikes nearby exhibit phyllic and potassic alteration. Porphyry-related Cu-Au mineralization isassociated with volcanics and intrusives, including a trench assaying 15m at 1% Cu. This is likewisesupported by coincident soil Cu-Au soil anomalies.In 2006, a reconnaissance drilling program was carried out at C6 and C9 and 3 drill holes for a totalof 1,176m completed. The drilling intersected a series of narrow monzonite, monzonite porphyry,diorite porphyry, porphyritic dacite, and porphyritic andesite intrusive sills/dikes, with potassicalteration and chalcopyrite / magnetite mineralization in places; the sills dip east. This is interpretedas a porphyry Cu-Au system that lies several hundred meters to the east. 68
  • 69. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectFigure 30: Tapian-San Francisco Compilation17.1.4 Waterfalls (C1)Waterfalls Prospect is characterized by coincident strong chargeability and resistivity anomaly over800m by 600m, further supported by coincident stream sediment Au-Cu-As-Zn anomalies. The areais underlain by dominantly recrystallised and silicified limestone and ultramafics and stronglypropylitized andesite with localized argillic and phyllic areas. Old adits were observed to follow goldand base metal veins.17.2 Tapian Main PropertyThe Tapian Main property comprises mining claim blocks that collectively form part of the sametenement (EP No. 016-XIII) as that of the Tapian-San Francisco property plus EP No. 018-XIII,known as the Tapian-Torino claims. It has potential for definition of a shallow epithermal resourcealong the Rosario and Samson zones and their possible extensions. A newly-defined porphyry targetat Tapian Main adjoins and lies at depth to the west and southwest of the Mt. Tapian prospect, andmay be linked by a feeder structure to the zones of surficial Cu and Au geochemical anomalism thatlie at shallow levels along its eastern margin at the Mt. Tapian prospect. It is located in a favorablestructural setting near the Philippine Fault and cross-faults. (Figure 31) 69
  • 70. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectThis prospect is characterized by a partially-defined chargeability anomaly covering 1km by 1kmwith flanking resistivity anomaly. Dominantly andesitic volcanics with limestone, ultramafics andmulti-phase intrusive comprise the underlying rock units. These rocks are affected by extensivepropylitic alteration with scattered narrow argillic zones. A porphyry Cu-Au target is interpreted atdepth. Extensive historic mining of epithermal gold is prese1nt in the area.A pre-WW2 gold mine with extensive underground workings where grade production is recorded as8.3 g/t Au. Extensive Au soil anomalies were defined in the area.17.3 Tapian Extension17.3.1 BoloboloReconnaissance work located extensive porphyry-related alteration [phyllic] in andesitic volcanics,as well as widely distributed calc-silicate boulders grading in the 1% Cu range in the BoloboloTarget.Bolobolo catchment is underlain by schists. At the prospect area, the mineralization is hosted by talcchlorite schist overlying a thick calc-schist. The talc chlorite schist contains dark colored serpentiniterich layers whose fragments are flattened along the primary foliation. The primary foliation hostingthe mineralization trends 75˚ and dips about 10˚ to the south. A possible secondary foliation (S2)trends 275˚ azimuth, and dips 20˚ northwards. (Buenavista, A.G., 2008)The mineralization on the schist is typically fine grained and appears to be smeared along thefoliation plane. Primary sulfides are chalcopyrite and bornite, and associated with hematite and somemagnetite. The mineralization can be traced for about 100 meters along the schist layer. (Buenavista,A.G., 2008)17.4 Other Nickel Laterite Prospects:Recent reconnaissance geological mapping has expanded the global nickel laterite resource potentialof Mindoro. Results of the regional mapping program indicate potential for additional nickel lateritemineralization on the adjacent Tapian Main, Tapian SF and Mat-I tenements (Figure 7). Thepresence of lateritic soils is manifested by the development of thick, purple-colored clayey soils overfavorable ultramafic rocks. Based on the mapping alone, there is no guarantee that nickel grades andthickness will be of commercial interest. Accordingly, a program of reconnaissance auger drillingwas carried out to give a preliminary indication of nickel content and laterite thickness. Thisindicated several areas warrant follow-up drilling to establish potential mineral resource.Also found within the Surigao District are producing nickel laterite mines such as Hinatuan,Taganito and the SRMI Mines, which lies a few kilometers south of the Agata Projects of Mindoro.These mines are providing direct shipping grade ore to markets and processing plants in China,Japan, Korea and Australia. There are also plans to put the large Nonoc nickel laterite deposit backinto production. This is located in an island just to the north of Surigao City. 70
  • 71. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectFigure 31: Tapian Main Compilation Map18.0 MINERAL PROCESSING AND METALLURGICAL TESTINGInitial metallurgical testing was carried out in between March 2008 and August 2008. A batch of sixsamples weighing 25 kilos each taken from test pits in ANLP was dispatched to En Lin Steel Phils.Corp. in the Cavite Economic Zone, Cavite, Philippines for initial pressure acid leach tests. En-Lin isa commercial facility producing high quality stainless steel products. It is the only nickel steel mill inthe Philippines. En Lin, while it has a proficient hydrometallurgical laboratory, is a non-accreditedlaboratory with respect to NI 43-101 compliant standards, and hence are not reported herein. It is notconsidered that these results are material under current market conditions.19.0 MINERAL RESOURCE ESTIMATE19.1 Data Set:The data set used as a basis for the resource interpretation, statistical analysis, grade estimation andresource classification was sourced from a Microsoft Excel ® spreadsheet(ANLP_ASSAYS_DATABASE_RAW.xls and AGL_AGT_DHCollar_Nov08.xls date stamped 7November 2008) provided by MRL in November 2008. The spreadsheets contained collar, survey,assay and lithology data.The data set comprised 408 holes for which assays were available for all 408 holes. 71
  • 72. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectThe data set was reformatted into data tables for import into MineSight ® software and file data andfields are summarized in Table 17. Table 17: Data Set Table File Record Fields Collar aglcol.csv 408 DHID,EAST,NORTH,ELEV,LEN Survey aglsrv.csv 408 DHID,FROM,TO,AZI,DIP Assays & Lithology aglass.csv 7,292 DHID,FROM,<ASSAYS>, LITH, ZONEThe Assay elements <ASSAYS> imported from the data set were Ni, Co, Fe, Al, Mg, P, SiO2, P2O5,CaO, Cr2O3, K2O, LOI, MnO, Na2O and TiO2 expressed as %.All holes were drilled vertically. No downhole surveys were carried out. This is acceptable due torelatively short length of the drillholes. Table 18 tabulates drillhole statistics. Table 18: Drillhole Summary Drilled Minimum Maximum Mean Median # m M M m m 408 7,300.83 4.4 46.6 17.9 17.019.2 Raw Assay Statistics:Preliminary statistical analysis on raw assays was carried out on 408 drillholes. The large variancein Iron grades is a function of the grouping of Limonite and Saprolite assays. Further analysis onassays was carried out after the resource was domained and composited assays coded intogeochemical Limonite and Saprolite domains. 72
  • 73. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project Table 19: Raw Assay Statistics Std Dev Cutoff Assays Above Cutoff Grade Item Grade Item Grade Ni% # % % 0.5 4598 100 Ni % 1.04 0.38 Co % 0.055 0.056 Fe % 24 17 0.6 4165 91 Ni % 1.09 0.36 Co % 0.058 0.058 Fe % 24 17 0.7 3723 81 Ni % 1.14 0.34 Co % 0.06 0.06 Fe % 24 17 0.8 3191 69 Ni % 1.21 0.33 Co % 0.061 0.063 Fe % 24 17 0.9 2696 59 Ni % 1.28 0.31 Co % 0.062 0.065 Fe % 23 16 1.0 2192 48 Ni % 1.35 0.30 Co % 0.061 0.067 Fe % 22 15 1.1 1754 38 Ni % 1.43 0.28 Co % 0.06 0.069 Fe % 20 14 1.2 1390 30 Ni % 1.51 0.27 Co % 0.059 0.07 Fe % 19 13 1.3 1076 23 Ni % 1.58 0.26 Co % 0.059 0.071 Fe % 19 12 1.4 785 17 Ni % 1.67 0.25 Co % 0.057 0.071 Fe % 19 12 1.5 598 13 Ni % 1.74 0.24 Co % 0.055 0.067 Fe % 18 11 1.6 420 9 Ni % 1.83 0.24 Co % 0.05 0.06 Fe % 18 1019.3 Compositing:On reviewing the assaying intervals of the raw assay data, the data set was composited into 1 metredownhole composites, with small interval merging constraints. 73
  • 74. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project Table 20: Compositing DataThe composite assay file was coded with a ZONE code to honour the domain solids that aredescribed in Section 19.2. Surfaces and Domains. Statistical analysis was carried out on data abovethe geochemical limonite/Saprolite (Limonite: ZONE 2) and between the geochemicalSaprolite/Bedrock contact surfaces (Saprolite: ZONE 4). The results are summarized in Table 23and Table 24, respectively.Following a review of Frequency Distribution and Cumulative Probability Plots for Nickelcomposites, it was decided not to apply any top cuts to the composite data set prior to gradeestimation, as there were no outliers warranting top cutting. Further evaluation would also involvedifferentiating geochemical Limonite and Transitional populations, which is indicated to somedegree by the skewness in the currently modelled Limonite subset. 74
  • 75. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project Table 21: Frequency Distribution Plots Ni% 75
  • 76. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project Table 22: Cumulative Probability Plots Ni% 76
  • 77. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project Table 23: Limonite Composite Statistics Std DevCutoff Assays Above Cutoff Grade Item Grade Item Grade Ni% # % % 0.5 1686 100 Ni % 0.96 0.30 Co % 0.105 0.062 Fe % 45 6 0.6 1573 93 Ni % 0.99 0.28 Co % 0.108 0.063 Fe % 45 6 0.7 1370 81 Ni % 1.04 0.27 Co % 0.113 0.065 Fe % 45 7 0.8 1129 67 Ni % 1.10 0.26 Co % 0.119 0.068 Fe % 44 7 0.9 909 54 Ni % 1.16 0.25 Co % 0.125 0.071 Fe % 44 7 1.0 647 38 Ni % 1.25 0.24 Co % 0.135 0.077 Fe % 43 7 1.1 433 26 Ni % 1.36 0.23 Co % 0.149 0.084 Fe % 42 8 1.2 307 18 Ni % 1.45 0.22 Co % 0.155 0.091 Fe % 41 8 1.3 210 12 Ni % 1.54 0.21 Co % 0.161 0.097 Fe % 39 8 1.4 149 9 Ni % 1.62 0.20 Co % 0.162 0.104 Fe % 38 9 1.5 108 6 Ni % 1.69 0.19 Co % 0.151 0.109 Fe % 37 9 1.6 64 4 Ni % 1.79 0.19 Co % 0.140 0.111 Fe % 36 9 77
  • 78. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project Table 24: Saprolite Composite Statistics Std Dev Cutoff Assays Above Cutoff Grade Item Grade Item Grade Ni% # % % 0.5 1804 100 Ni % 1.26 0.35 Co % 0.029 0.020 Fe % 12 6 0.6 1761 98 Ni % 1.28 0.33 Co % 0.029 0.020 Fe % 12 6 0.7 1727 96 Ni % 1.29 0.32 Co % 0.030 0.020 Fe % 12 6 0.8 1653 92 Ni % 1.32 0.31 Co % 0.030 0.020 Fe % 12 6 0.9 1554 86 Ni % 1.35 0.30 Co % 0.030 0.020 Fe % 12 5 1.0 1465 81 Ni % 1.37 0.29 Co % 0.030 0.020 Fe % 12 5 1.1 1236 69 Ni % 1.43 0.27 Co % 0.031 0.020 Fe % 13 5 1.2 1005 56 Ni % 1.50 0.26 Co % 0.031 0.021 Fe % 13 5 1.3 778 43 Ni % 1.57 0.25 Co % 0.033 0.021 Fe % 13 6 1.4 560 31 Ni % 1.66 0.23 Co % 0.033 0.022 Fe % 14 6 1.5 421 23 Ni % 1.74 0.23 Co % 0.034 0.022 Fe % 14 5 1.6 304 17 Ni % 1.81 0.22 Co % 0.034 0.020 Fe % 14 519.4 Surfaces and Domains:The composited data set was interrogated visually and statistically to determine a geochemical Iron(Fe) cutoff grade in order to determine a geochemical limonite/saprolite contact. There exists a verydramatic change in Fe grades within 1m below the occurrence of 30 Fe% in the downhole profile.The points generator tool within MineSight ® DH View was used to establish points at the bottom-of-sequence occurrence of 30 Fe%. The limonite contact points were set at the hole collar where nodownhole assays of above 30 Fe% were encountered. Points were used to generate a geochemicallimonite/saprolite contact surface. 78
  • 79. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectThe geochemical technique to determine limonite was chosen, to be consistent with proposed sub-domaining of Limonite ore in future resource studies in respect to generating Transitional oredomains using downhole multi-element geochemical criteria.The points generator tool within MineSight ® DH View was also used to determine top-of-sequenceoccurrences of 0.5 Ni% and 0.8 Ni % above the limonite/saprolite contact, and bottom-of-sequenceoccurrence of 0.8 Ni% in each drillhole.There is an abrupt change (drop) in Nickel grades below 1.2 Ni% at the base of the laterite profile.The 0.8 Ni % (bottom-of-sequence occurrence) bedrock cut-off grade for the Saprolite domain waschosen to account for the influence of footwall wall dilution given the block size selected forresource estimation discussed in Section 19.7. Block Modelling and Grade Estimation.The Limonite/Saprolite surface and the 0.5 Ni% top and 0.8 Ni% bottom surfaces were used togenerate four domains. These surfaces were subsequently used to generate domain solids.Saprolitic rock composites above 0.8 Ni % were excluded from surface domaining, statisticalanalysis and mineral resource estimation pending future variographic studies. Table 25: Domain Coding Geochemical Fe% & Domain Code Fe% Ni% Ni% cutoff domains ZONE Overburden 1 >= 30 < 0.5 Limonite 2 >= 30 >= 0.5 Saprolite 4 <30 >= 0.5 Bedrock 5 <30 < 0.8The domain solids were subsequently used to code the block model and to restrict grade estimationby using only composites that lay in the respective domains. For the purpose of this study, nodistinction was made between upper and lower limonite.Figure 32: Domain Surfaces and Composite Coding 79
  • 80. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project19.5 Data Manipulation:The Limonite/Saprolite contact surface was subsequently used to generate relative elevation itemsin both the composite file and the block model. The MineSight ® Assign RelativeElevation/Distance procedure was used to “unfold” the data by using the Limonite/Saprolitecontact surface as the reference surface.In general terms, Nickel grades in the Limonite horizon, generally increase and peak at a pointabout the base of the Limonite. Nickel grades remain respectively high and thereafter diminish asthe ore grades into basement/bedrock. Unfolding to this surface ensures that Nickel grades in bothLimonite and Saprolite are preferentially honoured in the mid section of the laterite profile whichrepresents a greater proportion (50+%) of the deposit.19.6 Specific Gravity, Bulk Density and Moisture Content:The Specific Gravity for Limonite and Saprolite has been set at 1.24 and 1.52 respectively, for themineral resource estimates. Table 26: Specific Gravity Parameters Domain Code Specific Gravity Domain Name ZONE Dry Density Ferruginous Laterite 1 1.24 Limonite 2 1.24 Saprolite 4 1.52 Bedrock 5 1.80In situ bulk density is vital in evaluating the resource tonnage. Two methodologies were undertakenby Mindoro for the determination of Bulk Density (BD). For the ferruginous laterite and limonitehorizons, bulk samples were collected from test pits and measured on site. The same procedure wasdone for the saprolite zone but was supplemented with another method, i.e., the collection andmeasurement of drill core samples.For BD measurements done on site, large samples ranging in volume from 0.005 m3 to 0.08 m3 werecollected from twenty test pits. The locations of these test pits are distributed around the drilling area(Figure 33). The bulk samples were measured for volume, wet weight, and dry weight. Thedescription of the methodology is detailed in the ANLP QA/QC Procedures (Appendix 4)The BD and moisture content were computed with the following formulas. Weight (kg) Bulk Density = _______________ ÷ 1000 (kg/ton) Volume (m3) Weight wet – Weight dry % Moisture Content = __________________ x 100 Weight wetFor the drill cores, relatively solid/uncrumpled portions of 10cm-20cm lengths were selected fromdrill holes and coated in paraffin wax to preserve the moisture. These were then dispatched toMcPhar Laboratories wherein the samples were measured using the water displacement method. It isstandard practice for Mcphar to check the wax coating and perform re-waxing if needed. 80
  • 81. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectFigure 33: Agata North Test Pit Location Map19.7 Block Modelling and Grade Estimation:The lateral block dimensions were originally selected at 12.5m or ¼ of the drillhole spacing of thegreater part of the drilling program. This was reduced to 10m laterally to be relative to the proposedgrade control drilling program/sampling program (5m x 5m) when the project moves into productionphase. Vertical block dimension was set at 1.5m, which is the minimum anticipated mining selectivemining bench height.Figure 34: Block Model Configuration 81
  • 82. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectThe MineSight ® IDW Interpolation procedure was used to interpolate Nickel, Cobalt, Iron andPhosphor grades. Inverse Distance Weighting (IDW) Power 2 was used for grade estimation. Thismethod was considered acceptable given the tight constraints applied to limonite and saprolitedomaining.Grades were interpolated in Limonite and Saprolite domains only.The transformed composited data set was used for grade estimation in order to generate block gradeestimates that would honour the undulating lateral spatial position of composited assays within thelaterite profile. Block grade estimation was constrained by coded composites in the respectivedomains.Figure 35: Block Model Cross Section (N1027590)Blocks were coded as Measured, Indicated and Inferred (else undefined) according to the distance tothe nearest sample in the grade estimation process. Distances used for mineral resourceclassification are considered conservative and may be expanded following a future variographicstudy. 82
  • 83. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectFigure 36: Block Model ClassificationA cursory variographic review of Nickel, Cobalt and Iron composite data from the September 2008data set showed a low nugget effect for all elements, which supports not top cutting the dataset. Thevariograms used spherical models and two structures and were generally robust on a combinedcomposite dataset. Variograms on limonite and saprock datasets showed acceptable variograms.The Nickel variograms showed a slight anisotropy with better correlation N-S than E-W. Aconservative approach was taken in respect to the use of short and long range structures as methodfor resource estimation confidence.Resource classification methodology for Limonite was based on the spacing as denoted in Table 27.Planar and elevation search ellipses for Saprolite were reduced by 1/2 to 1/3 of the limonite searchellipse parameters given the undulating sparolite/bedrock contact and laterally erratic nature of metalgrades in the saprolite domain.There is upside potential to increase indicated and inferred ore category tonnages followingfavourable outcome from a future variographic study, in conjunction with the analysis of the resultsof twinning diamond holes and test pits, to increase search ellipse parameters and domain extents. Table 27: Mineral Resource Classification Search Ellipse Minimum Maximum (Planar, Elevation) Spacing Classification Code Samples Samples LIMONITE SAPROLITE m m # # m AREA AMeasured 1 <30,<30,<3 <20,<20,<3 3 15 50x50Indicated 2 <100,<52,<3 <52,<52<3 3 15 100x50Inferred 3 <150,<104,<4 <100,<52,<4 3 15 100x100 AREA BMeasured 1 - - - - -Indicated 2 <100,<52<4 <52,<52<3 3 15 100x100Inferred 3 <150,<104,<4 <100,<52,<4 3 15 200x200 83
  • 84. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project Table 28: Mineral Resource Estimation by Classification Classification Laterite Horizon Mil DMT Mil WMT Ni % Co % Fe % LIMONITE 1.25 1.92 1.00 0.107 43.80 Measured SAPROLITE 0.30 0.37 1.26 0.023 10.00 Subtotal 1.54 2.29 1.05 0.091 37.32 LIMONITE 4.27 6.57 1.02 0.117 44.70 Indicated SAPROLITE 3.45 4.31 1.29 0.025 11.00 Subtotal 7.72 10.88 1.14 0.076 29.65 Measured & LIMONITE 5.52 8.49 1.02 0.115 44.50 Indicated SAPROLITE 3.74 4.68 1.29 0.024 10.92 Total 9.26 13.17 1.13 0.078 30.93 LIMONITE 7.71 11.87 1.02 0.121 44.40 Inferred SAPROLITE 4.99 6.23 1.32 0.025 11.40 Total 12.70 18.10 1.13 0.083 31.4420.0 OTHER RELEVANT DATA AND INFORMATIONThere are no other pertinent data.21.0 INTERPRETATION AND CONCLUSIONSWidespread occurrence of serpentinized harzburgite, serpentinized peridotite, serpentinites andlocalized lenses of dunite comprise the lithology in the Agata Projects area. Nickeliferrous lateritemineralization is present over a broad region in both the ANLP and the ASLP areas. The former hasan area of approximately 286 ha while the latter comprises about 235 ha.There are two distinct geomorphic features that have influenced laterite formation and consequentnickel enrichment in the Agata Project. The Eastern part of the delineated body has a moderate reliefwhose bedrocks are exposed in ridgetops and in the nearby creeks. The Western laterite occurs on alow relief terrain and with no exposures of bedrock on its hillcrests. In the Western area, the lateriteis well developed and contains thick and highly mineralized limonite/saprolite and transition rocks.The Eastern Laterite Zones contain some boulders within the laterite profile. Its limonite zone isusually thinner.The laterite profile in the ANLP consists of the ferruginous laterite, limonite and saprolite zones orhorizons, and the saprolitic rock, from surface to increasing depth. The limonite zone ischaracteristically iron oxide-rich, where the predominant minerals are hematite, goethite and clays,and with moderate nickel content (over 1%), while the saprolite zone has much less iron-oxide, ismagnesium-rich, and has a slightly higher nickel content than the limonite horizon.This report is based on the data that were produced and compiled by MRL. Data verificationperformed by the author found no discrepancies. Hence the database is considered adequate to meetindustry standards to estimate mineral resources.Work on mineral resource estimation yielded the following: • Preliminary statistical analysis on raw assays was carried out on 408 drillholes. The large variance in iron grades is a function of the grouping of Limonite and Saprolite assays. 84
  • 85. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project Further analysis on assays was carried out after the resource was domained and composited assays coded into geochemical Limonite and Saprolite domains. • Raw Assay data was analyzed above a cut-off grade of 0.5 Ni% for the limonite 0.8 Ni% for the saprolite. • The MineSight ® IDW Interpolation procedure was used to interpolate Nickel, Cobalt, Iron and Phosphor grades. Inverse Distance Weighting (IDW) Power 2 was used for grade estimation. This method was considered acceptable given the tight constraints applied to limonite and saprolite domaining. Grades were interpolated in Limonite and Saprolite domains only. • In general terms, nickel grades in the Limonite horizon, generally increase and peak at a point about the base of the Limonite. Nickel grades remain respectively high and thereafter diminish as the ore grades into basement/bedrock. Unfolding to this surface ensures that nickel grades in both Limonite and Saprolite are preferentially honored in the mid-section of the laterite profile which represents a greater proportion (50+%) of the deposit. • The Bulk Density for Limonite and Saprolite were measured in places and has been set at 1.24 and 1.52 respectively, for the mineral resource estimates. • A cursory variographic review of nickel, cobalt and iron composite data from the September, 2008 data set showed a low nugget effect for all elements, which supports not top cutting the dataset. The variograms used spherical models and two structures and were generally robust on a combined composite dataset. Variograms on limonite and saprock datasets showed acceptable variograms. The nickel variograms showed a slight anisotropy with better correlation N-S than E-W. A conservative approach was taken in respect to the use of short and long range structures as method for resource estimation confidence. • Resource classification methodology for Limonite was based on the spacing as denoted in Table 27. Planar and elevation search ellipses for Saprolite were reduced by 1/2 to 1/3 of the limonite search ellipse parameters given the undulating sparolite/bedrock contact and laterally erratic nature of metal grades in the saprolite domain.The summary of results is presented in the following table: Table 29: Summary of Resource: Combined Limonite and Saprolite @ 0.5% Ni cutoff grade (Limonite) and 0.8% Ni cutoff grade (Saprolite) Classification Mil. WMT Mil. DMT Ni% Co% Fe% Measured 2.29 1.54 1.05 0.091 37.32 Indicated 10.88 7.72 1.14 0.076 29.65 Total Meas. + Ind. 13.17 9.26 1.13 0.078 30.93 Inferred 18.10 12.70 1.13 0.083 31.44 • Mineral resources which are not mineral reserves do not have demonstrated economic viability. • The tonnage and nickel grades above have been rounded to the nearest 2nd or 3rd decimal, which may have resulted in minor discrepancies. • The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. • It is uncertain if further exploration will result in upgrading the Inferred mineral resource to an Indicated or Measured mineral resource or the Indicated mineral resource to a Measured Resource category. 85
  • 86. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectThis program was aimed to drill out the greater part of Agata North resource potential. The resultingresource estimate covers approximately 80 per cent of Agata North and is within the currentExploration Target range of 30 to 40 million WMT at a grade of 0.9 to 1.5 percent nickel and 18 to28 percent iron.22.0 RECOMMENDATIONSThe author recommends the conduct of metallurgical batch testwork to confirm the optimalapplicable technology for processing the nickel laterite resource. Cost would be approximately$80,000.Further variographic studies are recommended. A favorable outcome would allow an increase insearch ellipse parameters and domain extents, with the potential to increase indicated and inferredore category tonnages. Estimate cost is $6,000.A preliminary scoping study is recommended for ANLP, including continuous pilot leach testing toprove the processing concept and to derive the optimal processing flowsheet, and sufficientengineering to obtain operating and capital costs to plus or minus 35%. The scoping study willrequire from 500 to 2,000 engineering man hours (cost range $150,000 to $600,000.) 86
  • 87. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project23.0 REFERENCESAbrasaldo, E.M. 1999. Exploration Report Agata Project June 1997-April 1998. MRL Gold Phils., Inc., Internal Company Report (unpubl)Ambagan, D. 2007. Notes on Resource Estimation of Agata Nickel Laterite Project of MRL Gold Phils., Inc., Internal Report., (unpubl). January 2007.Aurelio, M.A. and Peña R.E. 2002. Geology and Mineral Resources of the Philippines, Volume 1: Geology. (eds) Aurelio, M.A. and Peña, R.E., Department of Environment and Natural Resources, Mines and Geosciences Bureau, Philippines.Bailey, D.G. 2003. Surigao Property Group, Northeastern Mindanao, Geology and Exploration Potential. Bailey Geological Consultants (Canada), Technical Report for Panoro Minerals Ltd.Buenavista, A.G. 2008. Notes on the Geology and Mineralization in the Surigao Western Range. MRL Gold Phils., Inc. Internal Report, February 2008.Buenavista, A.G. 2008. Geochemistry of the Agata Nickeliferrous Laterite Deposit. MRL Gold Phils., Inc. Internal Report, May 2008.Cox, D.M. 2008. Independent Geologic Report on the Nickel Laterite Resource at Agata North Laterite Project Area, Agata Project, Agusan del Norte Province, Northern Mindanao, Phillipines. MRL Gold Phils., Inc., September 2008, rev. Oct 2008.Climie, J.A., et,al. 2000. Accomplishment Report for the Period: June to December 1999. MRL Gold Phils., Inc., Internal Company Report (unpubl). January 2000.Climie, J.A., et,al. 2005. Interim Exploration Program Report, Surigao Joint Venture Projects: March 1 to June 20, 2005. MRL Gold Phils., Inc., Internal Company Report (unpubl). July 2005.De Luna, R., et.al., 2004. Report on the Reconnaissance Geologic Survey of the Nickeliferrous Laterite Deposits at Barangay Tapian, Mainit, Surigao del Norte and Barangay E. Morgado, Santiago, Agusan del Norte. Taganito Mining Corp. Report, July 2004.Elliott, P.J. 2005. Report on IP and Magnetic Surveys Over the: Agata Prospect, San Francisco Project, Philippines. MRL Gold Phils., Inc. and Panoro Minerals Ltd,, Company Report, June 2005Fang, E.F.E and C.A. Matilac. 2006. Evaluation of Preliminary Exploration on Agata Nickel Laterite Prospect of MRL Gold Phils., Inc., QNPH Report, June 2006Fetiza, I.A. Jr. 1999. Exploration Report: Tapian-San Francisco Project, May 1997 - May 1998. MRL Gold Philippines Inc. Internal Company Report (unpubl.).Marshall, N.J. 1997. Geological Report on the Agata, Mat-I, Nabago and Tapian Gold Prospects, Northern Mindanao, Republic of the Philippines. Marshall Geoscience Services Pty. Ltd., Australia.Mitchell, A.H.G. and Leach, T.M. 1991. Epithermal gold in the Philippines: Island arc metallogenesis, geothermal systems and geology. Academic Press Geology Series. 87
  • 88. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite ProjectRangin, C. 1991. The Philippine Mobile Belt: A complex plate boundary. Journal of Southeast Asian Earth Sciences, 6 (3/4), pp. 209-220.Rohrlach, B.D. 2005. Independent Geological Report on the Surigao Property Group, Northern Mindanao, Philippines. MRL Gold Phils., Inc. and Panoro Minerals Ltd., Company Report, April 2005Sajona, F.G., et.al., 1994. Magmatic response to abrupt changes in geodynamic settings: Pliocene- Quaternary calc-alkaline and Nb-enriched lavas from Mindanao (Philippines). Tectonophysics, 237(1-2), pp. 47-72.Sillitoe, R.H. 1988. Geotectonic setting of western Pacific gold deposits. In: M.J. Bartholomew. D.W. Hyndman, D.W. Mogk, and R. Mason, (eds), 8th International Conference on Basement Tectonics, 8, pp. 665-678. Kluwer Publishers, Butte, Montana.Tagura, F. et. al. 2006. Comprehensive Report, MPSA-134-99-XIII, Agata Tenement Blocks. MRL Gold Phils., Inc. Internal Company Report (unpubl.), 2006Tagura, F. et. al. 2006. Report on the Preliminary Drill Evaluation on Canaga (MPSA-33-95-X), Malimono, Surigao del Norte. MRL Gold Phils., Inc. Internal Company Report (unpubl.), September 2006Tagura, F. et. al. 2007. Report on Agata Drilling Program, Agusan del Norte, Philippines (Phase 1 Year 2 Expenditure Period 2005-2006), MRL Gold Phils., Inc. Internal Company Report (unpubl.), January 2007UNDP. 1984. Geology of Northern Agusan, Mindanao, United Nations Technical Report No. 2, DP/UN/PHI-79-004/6, New York.UNDP. 1987. Geology and Gold Mineralization of Surigao del Norte, United Nations Technical Report No. 4, DP/UN/PHI-85-001/4, New York. 88
  • 89. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project24.0 DATE AND SIGNATURES CERTIFICATE OF QUALIFICATIONI, Dallas M. Cox of 52 Somerville Street Bendigo Victoria, Australia 3350, hereby certify that:1. I am a Professional Mining Engineer employed as a private consultant under a sole trader business registered under Crystal Sun Consulting, with Australian Business Number ABN 28 818 090 933.2. I am responsible for the preparation of the technical report titled “43-101 Technical Report on the Mineral Resource Estimate for the Agata North Nickel Laterite Project of Mindoro Resources Ltd." and dated January 22, 2009.3. I am a member in good standing of the Australian Institute of Mining and Metallurgy with membership number 201098.4. I am a graduate of the University of New South Wales, Kensington with a degree in Mining Engineering.5. I have practiced my profession for 28 years including 22 years as a degree qualified Mining Engineer. I have been operating as an Independent Consulting Mining Engineer since July 2004.7. I certify that by reason of my education, affiliation with a professional association (as defined by NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. I am an independent qualified person as defined by NI 43-101 and by the companion policy 43-101CP to National Instrument 43-101.8. This technical report is based on my review of available published data and company reports, and personal visits to the property. I have spent in excess of 20 days working on the property and various off-site meetings/consultations with geologists and mining engineers on the property. My visits were on the July 2007, January and November 2008. It is my professional opinion that the Agata Property shows strong development potential and that further exploration of this property is warranted.10. I have read N.I. 43-101 and Form 101F1. The technical report has been prepared in compliance with both of these documents.11. I, Dallas Cox, do not expect to receive any interest (direct, indirect or contingent) in the properties described herein, nor in the securities of Mindoro Resources or any of their affiliates. I am independent of the issuer under all criteria of Section 1.5 of National Instrument 43-101.12. I am not aware of any material fact or material change with respect to the subject matter of this technical report which is not reflected in this report, the omission to disclose which would make this report misleading.13. I consent to the filing of the Technical report with any stock exchange and other regulatory authority and any publication by them for regulatory purposes. I consent to the filing of extracts 89
  • 90. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project from the technical report in the written disclosure which was filed on December 16th, 2008 (the press release). I also consent to the inclusion of parts of the Technical Report as electronic publication on the companies’ websites that are accessible to the public.14. I have read the written disclosure filed on December 16th, 2008, and do not believe that there area any misinterpretations.Signed in Manila, Philippines. Dated 22 January 2009__________________________Signature of Qualified PersonDallas M. Cox, BE (Min). AusIMM__________________________Name of Qualified Person 90
  • 91. 43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project25.0 ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ONDEVELOPMENT PROPERTIES & PRODUCTION PROPERTIESThe Agata Property (MPSA 134-99-XIII) is not a development property as defined by NI 43-101(F1), nor is it a property which is under mineral production. Hence, no further information isneeded.26.0 ILLUSTRATIONSRelevant maps, figures, photos or graphs were inserted in the appropriate sections of this report. 91
  • 92. Appendix 1Notice of Relinquishment of Portion of MPSA 134-99-XIII
  • 93. Appendix 2Certified Technical Descriptions for NAMRIA Control Stations
  • 94. Appendix 3Agata Project Nickel-Iron Laterite Cross Sections
  • 95. 10100E 10200E 10300E 10400E 10500E 10600E 10700E 10800E 10900E 11000E 11100E Ferruginous 0.53 /44.30 0.60 /46.93 0.53 /46.92 0.57 /49.87 0.75 /49.32 Laterite 3.00 4.00 0.70 7.00 3.00 Limonite 1.24 /51.03 1.02 /49.73 0.80 /47.63 1.29 /41.79 1.14 /50.58 1.43 /42.18 6.00 2.00 1.00 2.00 0.90 3.20300m ASL AGT 44 AGT 43 AGL 352 AGL 198 AGL 297 AGL 205 AGL 305 19m250 17m 29.3m 21.95m 26m 25.6m AGL 220 20.3mSaprolite AGL 212 AGL 225200 1.31 /15.21 1.41 /11.38 1.63 /12.80 1.41 /11.15 1.62 /15.37 1.71 /8.93 1.30 /8.55 4.00 6.00 4.00 5.00 7.00 7.20 5.60 20.95m 10m 12.45m150 AGL2007-48 Drillhole number MRL GOLD PHILS., INC. 50m Ferruginous laterite Ni% AGATA PROJECT Limonite Nickel - Iron Laterite Boulder Fe% 0 50m Cross Section Line 9600N Saprolite Compiled By: Plan No.: Saprolitic rock 1.38 /42.47 Drafted By: JBM,PDV Date: Nov 08 2.00 Thickness of intercept FIG Bedrock Checked By: JSR Approved By: 28m End of hole
  • 96. 9100E 9200E 9300E 9400E 9500E 9600E 9700E 9800E 9900E 10000E 10100E 10200E Ferruginous 0.69 /51.32 0.65 45.81 0.51 /47.15 Laterite 2.90 1.60 2.75 Limonite 0.83 /53.43 1.33 /42.48 1.12 /47.28 1.02 /34.86 0.96 /45.17 1.08 /50.63 1.80 3.00 6.85 4.00 1.10 2.50300m ASL AGL-164 AGL-167250 AGL-161 AGL-139 26.8m AGL-154 AGL-323 19.3m AGL-147 AGL-303 AGL-333 18.5m200 15.6m 13.4m 21.85m 18.3m 16.5m 26.95m150 Saprolite 1.83 /10.78 1.47 /10.40 1.45 /19.49 1.14 /9.87 1.10 /18.80 0.91 /12.80 1.55 /11.85 10.00 4.80 11.00 9.15 0.60 1.15 9.95 AGL 2007-48 Drillhole number Ferruginous laterite Ni% MRL GOLD PHILS., INC. Limonite 50m Fe% AGATA PROJECT Boulder Saprolite Nickel - Iron Laterite 1.38 /42.47 Cross Section Line 9650N Saprolitic rock 0 2.00 Thickness of intercept 50m Compiled By: Plan No.: Bedrock Drafted By: JBM, PDV Date: Nov 08 Checked By: Approved By: Fig. 28m End of hole
  • 97. 10000E 10100E 10200E 10300E 10400E 10500E 10600E 10700E 10800E 10900E 11000E Ferruginous 0.69 /49.00 0.69/48.09 0.68/41.88 0.64/48.37 0.69/49.20 0.75/46.88 0.70/47.21 0.62 /47.20 Laterite 4.00 2.85 6.55 4.50 1.45 0.90 2.90 2.45 Limonite 0.95 /49.39 1.33/47.23 1.61 /34.24 1.16/48.86 1.22/48.59 1.16/48.98 1.03 /51.16 1.33 /44.79 3.90 6.55 4.95 5.10 AGL-178 AGL-178 AGL-178 AGL-178 AGL-178 AGL-178 1.50 6.39 4.60 2.15300m ASL AGL-172 AGL-172 AGL-172 AGL-172 AGL-172 AGL-172 AGL-180 AGL-180 AGL-180 AGL-180 AGL-180 AGL-180 AGL-184 AGL-184 AGL-184 AGL-184 AGL-184 AGL-184 AGL-186 AGL-186 AGL-186 AGL-186 AGL-186 AGL-186 8.2m AGL-192 AGL-192 AGL-192 AGL-192 AGL-192 AGL-192 AGL-133 AGL-133 AGL-133 AGL-133 AGL-134 AGL-134 AGL-136 AGL-136 AGL-136 AGL-136 AGL-136 AGL-136 AGL-134 AGL-134 AGL-134 24.35m 23.25m250 11.65m 24.1m 19.4m 16.0m 28.0m 21.9m AGL-235 AGL-235 AGL-235 AGL-235 AGL-235 AGL-235 AGL-230 AGL-230 AGL-230 AGL-230 AGL-230 AGL-230200 19m 11.1m150 Saprolite 1.13/14.55 1.34 /14.131.53/10.191.76/16.97 1.86/13.39 1.95 /11.44 1.72/11.00 1.30 /13.20 1.09 /8.43 0.98 /20.14 2.50 7.60 5.45 16.00 12.75 2.50 12.61 6.50 8.90 2.00 AGL2007-48 Drillhole number MRL GOLD PHILS., INC. Ferruginous laterite Ni% 50m AGATA PROJECT Limonite Fe% Nickel - Iron Laterite Boulder 0 Cross Section Line 9700N Saprolite 50m 1.38 /42.47 Compiled By: Plan No.: Saprolitic rock 2.00 Thickness of intercept Drafted By: JBM,PDV Date: Nov 08 Bedrock Checked By: Approved By: Fig.28m End of hole
  • 98. 9000E 9100E 9200E 9300E 9400E 9500E 9600E 9700E 9800E 9900E 10000E 10100E 10200EFerruginous Laterite 0.63/50.10 0.75/49.20 0.70/46.19 0.63/47.01 0.73/49.87 0.69/50.66 0.70/49.98 0.65/50.57 0.68/47.30 4.30 1.35 0.40 1.00 1.35 1.45 2.30 3.50 4.40Limonite 1.06/46.25 1.02/45.75 1.01/48.09 1.04/42.15 0.99/48.57 1.00/48.24 0.83/32.13 0.88/48.29 0.92/47.39 1.12/47.90 0.97/49.37 2.80 4.20 4.35 0.50 1.20 2.00 1.55 3.65 1.45 3.60 2.05 AGL-127300m ASL AGL-132 AGL-130 AGL-160 12m AGL-128 AGL-135 AGL-156 12m250 AGL-137 13.15m AGL-151 17.1m AGL-148 13.25m 18.95m 21.05m AGL-143200 22m 18.5m 12.55m 15.5m150Saprolite 2.06/13.74 1.23/12.52 1.40/8.98 1.24/11.41 0.95/11.11 1.47/14.01 1.10/11.24 1.12/17.23 1.25/15.76 1.23/11.21 1.59/14.89 5.20 7.85 4.80 4.50 8.10 3.70 5.55 2.90 7.80 8.45 9.35 AGL2007-48 Drillhole number Ferruginous laterite Ni% 50m MRL GOLD PHILS., INC. Limonite Fe% AGATA PROJECT Boulder 0 Saprolite 50m Nickel - Iron Laterite 1.38 /42.47 Cross Section Line 9750N Saprolitic rock 2.00 Thickness of intercept Compiled By: Plan No.: Bedrock Drafted By: JBM, PDV Date: Nov 08 28m End of hole Checked By: Fig. Approved By:
  • 99. 9700E 9800E 9900E 10000E 10100E 10200E 10300E 10400E 10500E 10600E 10700E Ferruginous Laterite 0.71/45.38 0.71/49.44 0.66/50.05 0.67/49.76 0.71/46.65 0.77/47.73 0.66/43.18 0.64/44.22 0.66/46.26 1.00 1.80 2.00 1.00 1.25 0.40 2.00 2.00 4.00 Limonite 1.03/43.61 0.98/49.30 1.11/50.30 0.92/50.01 0.84/51.28 0.94/45.84 1.04/49.77 1.02/47.02 1.02/43.49 0.88/45.77 0.95/46.61 5.00 1.95 4.00 1.35 1.00 3.75 1.80 7.25 2.18 4.00 2.00 AGL-125 AGT 35 AGT 39 AGT 34 AGL-126 AGT 38300m ASL AGT 40 AGL-179 AGT 41 AGT 36 11.1m 8.55m 14.9m 19m AGL-171 13m 14m 26.6m 16m 20.5m250 32m 28.1m200 Saprolite 1.12/10.23 0.71/8.50 1.10/13.14 0.99/14.51 1.12/18.07 1.69/10.67 1.05/9.26 1.04/10.56 1.04/11.42 0.78/10.14 1.36/8.64 3.00 4.60 5.00 5.55 3.45 18.10 11.60 10.96 4.82 7.00 14.00150 AGL2007-48 Drillhole number MRL GOLD PHILS., INC. 50m Ferruginous laterite Ni% AGATA PROJECT Limonite 0 Nickel - Iron Laterite Fe% 50m Boulder Cross Section Line 9800N Saprolite Saprolitic rock 1.38 /42.47 Compiled By: Plan No.: 2.00 Thickness of intercept Drafted By: JBM,PDV Date: Nov 08 FIG Bedrock Checked By: JSR Approved By: 28m End of hole
  • 100. 9000E 9100E 9200E 9300E 9400E 9500E 9600E 9700E 9800E 9900E 10000E 10100E Ferruginous Laterite 0.74 /47.72 0.70/48.59 0.78/45.88 0.76/48.46 0.50 3.15 1.00 1.40 Limonite 1.12 /28.53 0.96 /50.98 1.13/47.81 1.28/48.63 1.20 /39.18 0.88 /30.99 1.11 /43.97 0.93 /38.80 1.03 /42.45 0.94/38.77 0.86/46.25 0.40 1.20 5.30 9.00 1.45 0.50 1.35 3.05 1.40 1.50 1.30 AGL-124 AGL-122 AGL-117300m ASL 9.3m AGL-121 AGL-159 8.85m 7.75m AGL-145 7.2m250 AGL-138 AGL-141 AGL-150 8.4m AGL-194 22.1m200 AGL-189 26.55m 28.15m 27.85m 17.07m150 25mSaprolite 1.13 /20.73 1.11/12.66 0.98 /12.01 1.05 /8.66 1.33 /11.03 1.09 /16.29 1.00/7.19 1.05 /8.36 1.16/12.60 0.50 5.55 9.10 17.10 2.25 2.95 2.30 1.45 1.00 AGL2007-48 Drillhole number Ni% MRL GOLD PHILS., INC. Ferruginous laterite AGATA PROJECT Limonite Fe% 50m Nickel - Iron Laterite Boulder Cross Section Line 9850N Saprolite 1.38 /42.47 Compiled By: 0 Plan No.: Saprolitic rock 2.00 Thickness of intercept 50m Drafted By: JBM, PDV Date: Nov 08 Checked By: Approved By: Fig. Bedrock28m End of hole
  • 101. 9300E 9400E 9500E 9600E 9700E 9800E 9900E 10000E 10100E 10200E 10300E 10400E 10500E 10600E 10700E 10800EFerruginous 0.69 /41.08 0.61 /41.19 0.62 /45.10 0.67 /48.72 0.66 /46.58 0.70 /45.76 0.67 /45.43 0.71 /46.91 0.67 /48.73Laterite 1.00 2.00 1.00 1.45 1.00 1.70 0.80 1.20 1.40Limonite 1.24 / 43.33 1.04 / 43.11 0.88 /48.19 0.88 /44.38 1.08 /44.75 0.95 /40.66 1.17 /43.89 1.11 /49.54 1.16 /48.71 1.24 /49.81 1.34 /47.74 1.34 /34.02 9.00 11.00 2.00 2.20 3.30 1.15 6.90 6.30 4.20 5.05 5.55 2.20 AGL-118 AGL-118 AGL-118 AGL-119 AGL-119 AGL-119 AGL-119 AGL-119 AGL-119 AGL-118 AGL-118 AGL-118 AGL-114 AGL-114 AGL-114 AGL-114 AGL-114 AGL-114300m ASL AGL-360 AGL-360 AGL-360 AGL-196 AGL-196 AGL-196 AGL-200 AGL-200 AGL-200 AGL-200 AGL-200 AGL-200 AGL-360 AGL-360 AGL-360 AGL-196 AGL-196 AGL-196 AGL-203 AGL-203 AGL-203 AGL-203 AGL-203 AGL-203 AGL-206 AGL-206 AGL-206 AGL-206 AGL-206 AGL-206 AGL-40 AGL-40 AGL-40 15.1m 15.1m 15.1m 11.6m 11.6m 11.6m 11.6m 11.6m 11.6m AGL-209 AGL-209 AGL-209 AGL-55 AGL-55 AGL-55 AGL-55 AGL-40 15.1m 15.1m 15.1m 19.1m 19.1m 19.1m 19.1m 19.1m AGL-191 AGL-191 AGL-191 AGL-209 AGL-209 AGL-209 AGL-214 AGL-214 AGL-214 AGL-214 AGL-214 AGL-214 AGL-191 AGL-191 AGL-191 16m 16m 16m 16m 16m 16m 15m 15m 15m 15m 15m 15m 16.65m 16.65m 16.65m 16.65m 16.65m 16.65m 14.65m 14.65m 14.65m250 14.65m 14.65m 14.65m 18.4m 18.4m 18.4m 18.4m 18.4m 19.7m 19.7m 19.7m 19.7m 19.7m 19.7m 8.7m 8.7m 8.7m 8.7m 8.7m 8.7m 13.1m 13.1m 13.1m 13.1m 13.1m 13.1m 25.5m 25.5m 25.5m 25.5m 25.5m 24.8m 24.8m 24.8m 24.8m 24.8m 24.8m200150Saprolite 1.14 /10.58 1.57 /20.27 0.82 /17.67 1.09 /8.62 0.98 /11.23 0.95 /8.08 1.08 /9.63 1.26 /10.19 1.07 /10.88 1.60 /12.93 1.36 /17.33 1.39 /15.24 0.94 /18.07 10.50 1.00 4.00 6.80 8.00 0.60 12.30 3.55 6.25 5.45 6.90 2.80 3.25 AGL2007-48 Drillhole number MRL GOLD PHILS., INC. Ferruginous laterite Ni% 50m AGATA PROJECT Limonite Boulder Fe% Nickel - Iron Laterite Cross Section Line 9900N Saprolite 0 Saprolitic rock 1.38 /42.47 50m Compiled By: Plan No.: Drafted By: JBM, PDV Date: Nov 08 2.00 Thickness of intercept Checked By: Fig. Bedrock Approved By:28m End of hole
  • 102. 9300E 9400E 9500E 9600E 9700E 9800E 9900E 10000E 10100E 10200E 10300E 10400E 10500E 10600E 10700E 10800E 10900E 11000E 11100EFerruginous 0.59 /41.02 0.68 /42.08 0.68 /46.31 0.67 /42.42 0.67 /44.82 0.63 /46.01 0.70 /44.21 0.73 /46.56 0.66 /45.27 0.68 /44.61 0.76 /44.49 0.66 /44.25 0.72 /45.37 0.73 /50.15 0.75 /48.04Laterite 3.00 2.00 4.00 4.00 1.00 3.00 2.00 1.00 2.00 2.00 1.00 2.00 1.00 2.00 1.00Limonite 1.12 /45.95 1.06 /41.84 1.23 /50.85 1.04 /46.07 1.27 /46.65 1.20 /45.85 0.86 /41.16 1.07 /46.41 1.17 /42.69 0.91 /44.32 0.97 /49.58 1.41 /42.99 1.04 /44.64 1.33 /44.53 0.98 /33.44 0.98 /50.06 1.07 /44.75 1.05 /49.74 1.25 /46.24 9.00 5.75 9.05 8.00 3.00 9.00 2.00 3.00 3.75 2.00 4.65 4.00 5.80 1.60 8.00 3.85 3.30 4.00 2.00 AGT - 28 AGL-108300m ASL AGL-106 AGT - 29 AGL-06 AGT-26 AGT- 45 AGL-109 AGT-25 AGL-14 AGT-27 14.35m AGT-30 AGT-31 AGL-20 14.35m AGL-199 35.1m 13.5m AGL-195 20.8m AGT-32250 24m 24.35m 26.2m 27.3m 22m 35m 16.5m 40m 27.75m 46m 46m 28.55m200 AGL - 247 AGL - 238 16.35m150 30.9mSaprolite 1.31 /13.34 1.02 /9.56 1.02 /12.24 1.33 /14.52 1.07 /9.60 1.06 /13.29 1.17 /16.68 1.21 /12.96 1.54 /21.64 1.42 /10.20 1.18 /8.55 1.13 /11.44 1.12 /14.89 1.27 /19.86 1.04 /10.82 1.55 /19.36 11.00 9.45 6.60 5.00 15.00 2.00 3.95 7.25 2.35 18.25 5.25 6.15 3.00 6.35 19.00 4.00 AGL2007-48 Drillhole number Ni% Ferruginous laterite MRL GOLD PHILS., INC. Fe% 50m AGATA PROJECT Limonite Boulder Nickel - Iron Laterite 1.38 /42.47 Saprolite 0 Cross Section Line 10000N 2.00 Thickness of intercept 50m Saprolitic rock Compiled By: Plan No.: Drafted By: JBM,PDV Date: Nov 08 Bedrock Checked By: JSR Approved By: FIG 28m End of hole
  • 103. 9200E 9300E 9400E 9500E 9600E 9700E 9800E 9900E 10000E 10100EFerruginous 0.71 /23.27 0.61 /39.62 0.68 /39.23 0.69 /39.70 0.62 /43.23 0.61 /43.02 0.67 /43.73 0.75 /46.64 0.70 /38.80 0.76 /33.22 0.65 /48.63 0.67 /47.19 0.62 /39.95 0.73 /45.85 0.68 /46.02 0.66 /45.74Laterite 0.65 3.00 3.00 3.00 2.00 1.00 2.00 1.57 3.00 2.00 2.00 2.00 5.00 1.00 2.00 0.75Limonite 1.02 /31.67 1.23 /40.65 1.08 /41.66 1.15 /43.20 1.02 /43.28 1.24 /43.95 1.13 /41.97 1.21 /47.65 1.22 /43.34 0.90 /36.52 0.89 /42.60 0.83 /48.53 1.11 /39.60 0.86 /47.85 1.12 /46.44 1.12 /47.96 1.20 0.80 8.40 6.00 8.20 9.00 4.00 9.00 4.89 1.65 2.00 4.00 1.65 2.95 8.00 6.05 AGL-101A AGL-103 AGL-101A AGL-103 AGL-101A AGL-103 AGL-101A AGL-103 AGL-101A AGL-103 AGL-101A AGL-103300m ASL AGL-98 AGL-101 AGL-98 AGL-101 AGL-98 AGL-101 AGL-98 AGL-101 AGL-98 AGL-101 AGL-98 AGL-101 AGL-05 AGL-05 AGL-05 AGL-104 AGL-104 AGL-104 AGL-104 AGL-104 AGL-104 AGL-113 AGL-113 AGL-113 AGL-10 AGL-10 AGL-10 AGL-05 AGL-12 AGL-12 AGL-12 AGL-100 AGL-100 AGL-100 AGL-100 AGL-100 AGL-100 AGL-107 AGL-107 AGL-107 AGL-107 AGL-107 AGL-107 AGL-113 AGL-12 AGL-12 AGL-12 AGL-15 AGL-15 AGL-15 AGL-15 AGL-15 AGL-15 8.87m AGL-21 AGL-21 AGL-21 AGL-21 AGL-21 AGL-21 15.31m 17.68m AGL-23 AGL-23 AGL-23 AGL-23 AGL-23 AGL-23 4.65m 10.9m AGL-183 AGL-183 AGL-183 AGL-183 AGL-183 AGL-183 AGL-181 AGL-181 AGL-181 AGL-181 AGL-181 AGL-181250 24.17m 23.8m 20.5m 25.25m 24.33m 21.7m 10.8m 20.05m 32.39m 25.16m 26.3m AGL-155 AGL-155 AGL-155 AGL-155200 13.65mSaprolite 0.91 /20.22 0.89 /7.73 1.16 /7.72 1.17 /6.41 1.09 /7.56 1.05 /8.78 0.84 /10.19 1.11 /13.50 1.19 /12.35 1.01 /16.93 0.82 /17.39 1.02 /10.54 1.35 /19.16 1.30 /11.58 1.04 /12.25 1.20 5.55 7.00 9.05 2.00 7.00 5.00 11.29 5.00 2.44 3.00 5.25 3.00 10.05 10.30 AGL2007-48 Drillhole number MRL GOLD PHILS., INC. Ferruginous laterite Ni% AGATA PROJECT Limonite Fe% Nickel - Iron Laterite Boulder 50m Cross Section Line 10050N Saprolite Saprolitic rock 1.38 /42.47 2.00 Thickness of intercept 0 Compiled By: Plan No.: Bedrock 50m Drafted By: JBM,PDV Date: Nov. 08 FIG 28m End of hole Checked By: Approved By:
  • 104. 9300E 9400E 9500E 9600E 9700E 9800E 9900E 10000E 10100E 10200E 10300E 10400E 10500E 10600E 10700E 10800E 10900E 11000E 11200EFerruginous 0.62 /41.66 0.58 /40.44 0.70 /43.25 0.65 /43.96 0.65 /44.92 0.72 /46.34 0.76 /48.31 0.66 /50.57 0.68 /43.40 0.73 /47.59 0.69 /47.58 0.77 /34.70 0.78 /49.11 0.69 /47.40 0.63 /46.87 0.65 /48.99Laterite 2.85 2.00 3.00 1.00 0.80 2.00 2.00 3.15 2.00 0.50 0.50 0.95 2.30 4.80 2.70 1.00Limonite 1.15 /44.81 1.13 /44.67 1.07 /46.71 1.00 /44.36 0.99 /41.73 1.03 /38.13 0.96 /42.51 0.90 /44.77 1.38 /40.32 1.03 /50.23 1.21 /46.71 1.06 /48.15 1.16 /49.63 1.29 /40.07 0.98 /50.88 1.09 /47.84 0.97 /50.65 0.93 /49.88 7.30 14.00 5.00 2.00 8.00 3.00 3.20 1.00 3.00 6.95 7.70 1.50 4.55 1.80 3.55 5.25 4.65 2.30300m ASL AGL-04 AGL-91 AGL-102 AGL-95 AGL-105 AGL-11 AGL-129 AGL-116 AGL-190 AGL-18 AGL-193 AGL-24 AGL-30 18.3m 14.94m AGL-201 20.75m250 23.52m 19.35m 34.7m 34.15m 27m 24.45m AGL-207 32.4m 18.55m 26.45m 11.55m 32.6m AGL-210 AGL-216200 12.9m AGL-222 AGL-232 18.2m 24m150 27m 19.75mSaprolite 0.82 /6.75 1.30 /9.94 0.94 /18.53 1.17 /9.26 0.90 /8.94 1.41 /13.15 1.37 /10.011.12 /12.271.06 /18.03 1.23 /12.66 1.28 /16.09 1.48 /17.78 0.90 /18.88 0.85 /19.90 0.97 /12.72 1.33 /10.92 1.32 /13.83 1.05 /9.78 15.85 15.00 4.00 10.25 11.05 6.90 5.40 9.62 5.65 8.40 1.00 7.75 0.35 4.30 1.25 12.40 11.55 9.70 AGL2007-48 Drillhole number Ferruginous laterite Ni% MRL GOLD PHILS., INC. Limonite Fe% AGATA PROJECT Boulder 50m Saprolite Nickel - Iron Laterite 1.38 /42.47 Cross Section Line 10100N Saprolitic rock 0 2.00 Thickness of intercept 50m Compiled By: Plan No.: Bedrock Drafted By: JBM,PDV Date: Nov 08 FIG Checked By: JSR Approved By: 28m End of hole
  • 105. 9100E 9200E 9300E 9400E 9500E 9600E 9700E 9800E 9900E 10000E 10100E 10200E Ferruginous Laterite 0.61 /43.89 0.66 /43.17 0.67 /42.34 0.65 /41.24 0.61 /43.48 0.66 /41.66 0.69 /42.94 0.79 /42.89 0.60 /40.80 0.63 /41.67 0.66 /47.60 0.70 /49.14 0.68 /46.81 0.63 /45.52 3.00 2.00 2.00 2.00 3.00 3.00 1.10 1.20 5.00 0.90 2.00 3.05 1.50 2.05 Limonite 1.23 /35.08 1.14 /35.12 1.40 /42.97 1.36 /39.45 0.97 /45.23 0.97 /42.35 1.01 /43.33 1.11 /44.05 0.98 /38.42 0.91 /43.22 0.90 /45.66 0.91 /40.75 1.00 /45.48 0.93 /49.24 1.49 /42.07 1.17 /44.52 3.00 0.60 7.60 12.00 4.00 2.00 7.00 9.00 1.80 2.00 2.95 2.05 3.00 2.55 10.65 8.60 AGL-02 AGL-02 AGL-02 AGL-02 AGL-02 AGL-02 AGL-93 AGL-93 AGL-93 AGL-90 AGL-90 AGL-90 AGL-90 AGL-94 AGL-94 AGL-94 AGL-94 AGL-94 AGL-94300m ASL AGL-03 AGL-03 AGL-03 AGL-93 AGL-93 AGL-93 AGL-03 AGL-97 AGL-97 AGL-97 AGL-99 AGL-99 AGL-99 AGL-97 AGL-97 AGL-97 AGL-131 AGL-123 AGL-131 AGL-123 AGL-131 AGL-123 AGL-08 AGL-08 AGL-08 AGL-08 AGL-08 AGL-08 AGL-13 AGL-13 AGL-13 AGL-96 AGL-96 AGL-96 AGL-99 AGL-99 AGL-99 AGL-111 AGL-131 AGL-123 AGL-111 AGL-131 AGL-111 AGL-131 AGL-111 AGL-13 AGL-13 AGL-13 AGL-17 AGL-17 AGL-17 AGL-17 AGL-17 AGL-17 AGL-96 AGL-96 AGL-33 AGL-33 AGL-33 AGL-33 AGL-33 AGL-33 22.5m 24.8m 23.65m 11.15m250 AGL-187 AGL-187 AGL-187 AGL-187 25m 15.75m 22.9m 20m 18.6m 17m 24.7m 28.5m 7.6m 34.15m 33.5m 33.1m200 AGL-158 AGL-158 AGL-158 AGL-158AGL-163AGL-163AGL-163AGL-163AGL-163 15.4m150 11.3m Saprolite 1.06 /15.09 1.04 /7.39 1.43 /11.95 0.96 /9.22 1.02 /10.29 1.03 /7.67 1.25 /12.91 1.16 /11.67 1.01 /20.18 1.12 /9.70 1.26 /12.01 1.34 /10.40 1.00 /7.86 1.21 /10.44 3.90 9.15 4.50 15.00 7.00 18.00 3.00 11.00 2.80 4.05 8.15 3.00 14.75 16.35 AGL 2007-48 Drillhole number MRL GOLD PHILS., INC. Ferruginous laterite Ni% Limonite AGATA PROJECT Fe% Boulder 50m Nickel - Iron Laterite Saprolite Cross Section Line 10150N 1.38 /42.47 Saprolitic rock 2.00 Thickness of intercept 0 Compiled By: Plan No.: Bedrock 50m Drafted By: JBM,PDV Date: Nov 08 Checked By: FIG 28m End of hole Approved By:
  • 106. 9400E 9500E 9600E 9700E 9800E 9900E 10000E 10100E 10200E 10300E 10400E 10500E 10600E 10700E 10800E 10900E 11000E 11100EFerruginous 0.74 /43.65 0.57 /45.20 0.67 /43.02 0.61 /43.05 0.61 /41.39 0.60 /47.02 0.62 /44.70 0.66 /43.29 0.71 /33.50 0.77 /42.16 0.68 /47.10 0.68 /49.55 0.76 /44.77 0.67 /47.55 0.72 /46.34 0.66 /45.03 0.67 /48.31 0.69 /47.59 0.65 /48.65 0.73 /50.88Laterite 1.00 1.28 2.00 3.00 2.00 1.60 4.30 2.70 5.00 1.00 1.15 2.00 0.65 2.00 1.00 1.25 1.10 1.75 2.00 1.00Limonite 1.46 /53.08 1.46 /53.08 1.46 /53.08 1.46 /53.08 1.23 /43.46 1.19 /45.45 1.23 /43.46 1.19 /45.45 1.23 /43.46 1.19 /45.45 1.23 /43.46 1.19 /45.45 1.23 /43.46 1.19 /45.45 1.23 /43.46 1.19 /45.45 1.02 /44.33 1.02 /44.33 1.02 /44.33 1.02 /44.33 1.11 /42.68 1.11 /42.68 1.11 /42.68 1.11 /42.68 1.00 /43.45 1.00 /43.45 1.00 /43.45 1.00 /43.45 0.99 /49.42 0.99 /49.42 0.99 /49.42 0.99 /49.42 1.21 /44.95 1.21 /44.95 1.21 /44.95 1.21 /44.95 1.09 /42.91 1.09 /42.91 1.09 /42.91 1.09 /42.91 0.84 /29.49 0.84 /29.49 0.84 /29.49 0.80 /48.32 0.80 /48.32 0.80 /48.32 0.80 /48.32 0.99 /49.80 0.99 /49.80 0.99 /49.80 0.99 /49.80 0.96 /37.86 0.96 /37.86 0.96 /37.86 0.96 /37.86 1.01 /34.80 1.01 /34.80 1.01 /34.80 1.01 /34.80 0.82 /47.41 0.82 /47.41 0.82 /47.41 0.82 /47.41 0.94 /40.77 0.94 /40.77 0.94 /40.77 0.94 /40.77 1.13 /46.20 1.13 /46.20 1.13 /46.20 1.13 /46.20 1.13 /46.20 1.01 /46.30 1.01 /46.30 1.01 /46.30 0.94 /46.20 0.94 /46.20 0.94 /46.20 0.94 /46.20 0.95 /51.37 0.95 /51.37 0.95 /51.37 0.95 /51.37 1.15 /49.91 1.15 /49.91 1.15 /49.91 1.15 /49.91 0.95 /51.79 0.95 /51.79 0.95 /51.79 1.05 /35.34 1.05 /35.34 1.05 /35.34 1.05 /35.34 0.91 /52.68 0.91 /52.68 0.91 /52.68 0.91 /52.68 1.46 /53.08 1.46 /53.08 1.46 /53.08 1.46 /53.08 1.46 /53.08 1.23 /43.46 1.19 /45.45 1.23 /43.46 1.19 /45.45 1.23 /43.46 1.19 /45.45 1.02 /44.33 1.02 /44.33 1.02 /44.33 1.02 /44.33 1.02 /44.33 1.11 /42.68 1.11 /42.68 1.11 /42.68 1.11 /42.68 1.11 /42.68 1.00 /43.45 1.00 /43.45 1.00 /43.45 1.00 /43.45 1.00 /43.45 0.99 /49.42 0.99 /49.42 0.99 /49.42 0.99 /49.42 0.99 /49.42 1.21 /44.95 1.21 /44.95 1.21 /44.95 1.21 /44.95 1.21 /44.95 1.09 /42.91 1.09 /42.91 1.09 /42.91 1.09 /42.91 1.09 /42.91 0.84 /29.49 0.84 /29.49 0.84 /29.49 0.84 /29.49 0.84 /29.49 0.84 /29.49 0.80 /48.32 0.80 /48.32 0.80 /48.32 0.80 /48.32 0.80 /48.32 0.99 /49.80 0.99 /49.80 0.99 /49.80 0.99 /49.80 0.99 /49.80 0.96 /37.86 0.96 /37.86 0.96 /37.86 0.96 /37.86 0.96 /37.86 1.01 /34.80 1.01 /34.80 1.01 /34.80 1.01 /34.80 1.01 /34.80 0.82 /47.41 0.82 /47.41 0.82 /47.41 0.82 /47.41 0.82 /47.41 0.94 /40.77 0.94 /40.77 0.94 /40.77 0.94 /40.77 0.94 /40.77 1.13 /46.20 1.13 /46.20 1.13 /46.20 1.13 /46.20 1.01 /46.30 1.01 /46.30 1.01 /46.30 1.01 /46.30 1.01 /46.30 1.01 /46.30 0.94 /46.20 0.94 /46.20 0.94 /46.20 0.94 /46.20 0.94 /46.20 0.95 /51.37 0.95 /51.37 0.95 /51.37 0.95 /51.37 0.95 /51.37 1.15 /49.91 1.15 /49.91 1.15 /49.91 1.15 /49.91 1.15 /49.91 0.95 /51.79 0.95 /51.79 0.95 /51.79 0.95 /51.79 0.95 /51.79 0.95 /51.79 1.05 /35.34 1.05 /35.34 1.05 /35.34 1.05 /35.34 1.05 /35.34 0.91 /52.68 0.91 /52.68 0.91 /52.68 0.91 /52.68 0.91 /52.68 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 7.92 7.92 7.92 7.92 7.92 7.92 8.13 8.13 8.13 8.13 8.13 8.13 3.21 3.21 3.21 3.21 3.21 3.21 3.00 3.00 3.00 3.00 3.00 3.00 7.00 7.00 7.00 7.00 7.00 7.00 6.60 6.60 6.60 6.60 6.60 6.60 2.20 2.20 2.20 2.20 2.20 2.20 4.90 4.90 4.90 4.90 4.90 4.90 0.60 0.60 0.60 0.60 0.60 0.60 0.85 0.85 0.85 0.85 0.85 0.85 1.10 1.10 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 5.50 5.50 5.50 5.50 5.50 5.50 6.70 6.70 6.70 6.70 6.70 6.70 3.90 3.90 3.90 3.90 3.90 3.90 6.00 6.00 6.00 6.00 6.00 6.00 3.00 3.00 3.00 3.00 3.00 3.00 1.00 1.00 1.00 1.00 1.00 1.00 1.20 1.20 1.20 1.20 1.20 1.20 7.92 7.92 7.92 8.13 8.13 8.13 3.21 3.21 3.21 3.00 3.00 3.00 7.00 7.00 7.00 6.60 6.60 6.60 2.20 2.20 2.20 4.90 4.90 4.90 0.60 0.60 0.60 0.85 0.85 0.85 1.10 1.10 1.10 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 3.00 3.00 3.00 3.00 3.00 3.00 5.50 5.50 5.50 6.70 6.70 6.70 3.90 3.90 3.90 6.00 6.00 6.00 3.00 3.00 3.00 1.00 1.00 1.00 1.20 1.20 1.20300m ASL AGL-01 AGL-01 AGL-01 AGL-01 AGL-01 AGL-01 AGL-01 AGL-01 AGL-01 AGT-13 AGT-13 AGT-13 AGT-13 AGT-13 AGT-13 AGT-13 AGT-13 AGT-13 AGL-88 AGL-88 AGL-88 AGL-88 AGL-88 AGL-88 AGL-88 AGL-88 AGL-88 AGT - -16 AGT - -16 AGT -16 AGT 16 AGT -16 AGT 16 AGT - -16 AGT -16 AGT 16 AGL-83 AGL-83 AGL-83 AGL-83 AGL-83 AGL-83 AGT - -15 AGT -15 AGT 15 AGL-83 AGL-83 AGL-83 AGT - -15 AGT - -15 AGT -15 AGT 15 AGT -15 AGT 15 AGL-07 AGL-07 AGL-07 AGL-07 AGL-07 AGL-07 AGT - -46 AGT -46 AGT 46 AGL-07 AGL-07 AGL-07 AGT - -46 AGT - -46 AGT -46 AGT 46 AGT-14 AGT-14 AGT-14 AGT - -17 AGT -17 AGT 17 AGT - -17 AGT -46 AGT 46 AGL-09 AGL-09 AGL-09 AGL-09 AGL-09 AGL-09 AGL-38 AGL-38 AGL-38 AGT-14 AGT-14 AGT-14 AGT-14 AGT-14 AGT-14 AGL-14A AGL-14A AGL-14A AGL-14A AGL-14A AGL-14A AGL-14A AGL-14A AGL-14A AGT - -17 AGT -17 AGT 17 AGT -17 AGT 17 AGL-77 AGL-77 AGL-77 AGL-77 AGL-77 AGL-77 AGL-09 AGL-09 AGL-09 AGL-38 AGL-38 AGL-38 AGL-38 AGL-38 AGL-38 AGL-92 AGL-92 AGL-92 AGL-77 AGL-77 AGL-77 AGL-38A AGL-38A AGL-38A AGL-38A AGL-38A AGL-38A AGL-38A AGL-38A AGL-38A AGL-92 AGL-92 AGL-92 AGL-92 AGL-92 AGL-92 4.35m AGL-355 AGL-355 AGL-355 15.02m 14.55m 13.35m AGL-355 AGL-355 AGL-355 AGL-355 AGL-355 AGL-355 AGT - -18 AGT -18 AGT 18 AGT - -18 AGT - -18 AGT -18 AGT -18 AGT 18 AGT 18 21m 6.5m250 16.15m 18m 18m 17.1m 16.75m 17.17m 20.95m 17.95m 25m 10m AGL-197 AGL-197 AGL-197 AGL-197 AGL-197 AGL-197 AGL-197 AGL-197 AGL-197 36.05m 27m AGL-202 AGL-202 AGL-202 AGL-202 AGL-202 AGL-202 AGL-217 AGL-217 AGL-217 AGL-202 AGL-202 AGL-202 AGL-217 AGL-217 AGL-217 AGL-217 AGL-217 AGL-217 AGL-224 AGL-224 AGL-224 AGL-224 AGL-224 AGL-224200 AGL-224 AGL-224 AGL-224 AGL-228 AGL-228 AGL-228 AGL-228 AGL-228 AGL-228 AGL-228 AGL-228 AGL-228 28.2m AGL-236 AGL-236 AGL-236 18.6m AGL-233 AGL-233 AGL-233 AGL-233 AGL-233 AGL-233 AGL-236 AGL-236 AGL-236 AGL-236 AGL-236 AGL-236 AGL-233 AGL-233 AGL-233 32.15m 25.2m 15.1m150 7.4m 18.7mSaprolite 1.19 /11.93 1.61 /20.29 1.21 /7.89 1.07 /11.45 1.24 /10.78 0.95 /10.28 1.07 /14.23 0.95 /10.60 0.81 /8.64 1.05 /8.82 1.14 /8.21 1.30 /12.84 1.03 /9.03 1.18 /14.59 1.07 /20.19 0.84 /7.45 1.12/11.58 1.36 /13.49 1.04 /14.65 0.92 /10.18 1.41 /10.91 1.10 /15.34 0.82 /8.29 4.27 3.60 5.52 7.79 8.80 9.00 9.75 4.79 7.25 9.80 6.90 1.90 2.25 1.85 6.00 2.00 11.00 4.50 10.45 9.25 7.90 6.00 6.15 AGL Drillhole number2007-48 Ni% MRL GOLD PHILS., INC. Ferruginous laterite 50m Limonite AGATA PROJECT Fe% Boulder Nickel - Iron Laterite 0 Cross Section Line 10200N Saprolite 50m 1.38 /42.47 Saprolitic rock 2.00 Thickness of intercept Compiled By: Plan No.: Bedrock Drafted By: JBM,PDV Date: Nov 08 FIG Checked By: JSR Approved By: 28m End of hole
  • 107. 9400E 9500E 9600E 9700E 9800E 9900E 10000E 10100E 10200EFerruginous 0.60 /42.90 0.53 /45.70 0.62 /42.86 0.63 /41.10 0.64 /42.15 0.65 /46.91 0.67 /42.03 0.68 /43.13 0.62 /43.80 0.67 /47.33 0.65 /45.55 0.60 /47.43 0.72 /48.57 0.75 /41.75 0.70 /43.66 0.68 /48.85 0.58 /50.12Laterite 2.00 1.45 3.00 5.70 3.00 3.05 1.00 4.00 2.00 1.15 5.00 0.90 0.90 0.90 1.50 1.20 0.90Limonite 1.25 /42.49 1.14 /46.551.12 /45.55 1.26 /43.05 1.38 /40.37 1.12 /49.42 0.97 /44.78 1.08 /45.11 0.88 /43.35 1.06 /47.82 0.97 /44.35 0.84 /46.55 1.08 /39.53 0.91 /40.49 0.99 /41.11 1.15 /43.65 8.00 6.55 10.00 5.30 9.25 6.05 4.00 7.00 4.00 2.85 4.00 3.10 1.15 2.10 1.10 3.10 300m ASL AGL-28A AGL-28A AGL-28A AGL-28A AGL-28A AGL-28A AGL-22A AGL-22A AGL-22A AGL-22A AGL-22A AGL-22A AGL-81 AGL-81 AGL-81 AGL-81 AGL-81 AGL-81 AGL-84 AGL-84 AGL-84 AGL-28 AGL-28 AGL-28 AGL-28 AGL-28 AGL-28 AGL-16 AGL-16A AGL-16 AGL-16A AGL-16 AGL-16A AGL-78 AGL-78 AGL-78 AGL-78 AGL-84 AGL-84 AGL-84 AGL-22 AGL-22 AGL-22 AGL-22 AGL-22 AGL-22 AGL-16 AGL-16A AGL-16 AGL-16A AGL-16 AGL-16A AGL-80 AGL-80 AGL-80 AGL-80 AGL-80 AGL-80 AGL-35 AGL-35 AGL-35 AGL-35 AGL-79 AGL-79 AGL-79 AGL-79 AGL-79 AGL-79 AGL-86 AGL-86 AGL-86 AGL-76 AGL-76 AGL-76 AGL-76 AGL-76 AGL-76 AGL-76A AGL-76A AGL-76A AGL-43 AGL-43 AGL-43 AGL-43 AGL-43 AGL-43 AGL-89 AGL-89 AGL-89 AGL-86 AGL-86 AGL-86 AGL-76A AGL-76A AGL-76A AGL-89 AGL-89 AGL-89 AGL-188 AGL-188 AGL-188 AGL-188 AGL-188 AGL-188 11.40m 15m 12.80m 17.2m 17.15m 15m 19.30m 7.1m 11.3m 250 21.9m 13.6m13.35m 31m 16m 36.1m 20.85m 46.6m 20.9m 200Saprolite 0.95 /8.25 1.18 /19.71 0.94 /17.28 1.12 /8.10 1.42 /16.37 1.02 /12.37 1.01 /7.98 0.82 /12.15 1.02 /14.64 1.09 /7.56 1.27 /13.64 1.01 /9.11 1.03 /17.35 1.25 /10.16 1.29 /11.08 1.30 /9.78 16.00 1.00 1.00 4.50 8.15 5.00 2.05 5.15 2.15 5.85 9.10 6.00 2.00 6.90 5.75 6.70 150 AGL2007-48 Drillhole number Ferruginous laterite Ni% MRL GOLD PHILS., INC. Limonite 50m Fe% AGATA PROJECT Boulder Saprolite Nickel - Iron Laterite 1.38 /42.47 Cross Section Line 10250N Saprolitic rock 2.00 Thickness of intercept Bedrock 0 Compiled By: Plan No.: 50m Drafted By: JBM, PDV Date: Nov. 08 28m End of hole FIG Checked By: JSR Approved By:
  • 108. 9500E 9600E 9700E 9800E 9900E 10000E 10100E 10200E 10300E 10400E 10500E 10600E 10700E 10800E 10900E 11000EFerruginous 0.59 /44.19 0.65 /45.30 0.67 /45.28 0.72 /44.46 0.67 /41.69 0.70 /44.85 0.65 /40.64 0.65 /42.33 0.66 /43.60 0.70 /43.30 0.61 /12.02 0.74 /47.46 0.97 /29.35 0.66 /47.76 0.60 /46.54 0.71 /47.07 0.67 /46.06 0.68 /47.72 0.68 /48.39Laterite 5.00 3.75 1.00 2.00 2.00 2.00 3.00 3.50 1.10 12.00 1.05 2.90 2.00 1.90 2.10 1.00 2.00 2.00 2.00Limonite 0.94 /44.32 0.99 /48.69 0.83 /45.87 0.97 /43.69 1.11 /43.47 1.11 /46.61 1.21 /42.541.12 /38.63 1.25 /30.59 0.90 /40.92 1.03 /46.17 0.82 /47.50 0.91 /47.64 0.80 /46.86 1.13 45.24 1.01 /39.49 1.30 /45.04 1.12 /49.63 0.94 /46.22 1.08 /50.83 0.82 /49.52 5.00 5.20 1.00 4.75 6.00 6.70 6.00 5.95 5.00 2.00 4.80 1.06 0.80 0.70 3.00 0.80 13.00 3.00 2.00 5.00 1.20300m ASL AGL-26A AGL-26A AGL-26A AGL-26A AGL-26A AGL-26 AGL-26 AGL-26 AGL-19 AGL-19 AGL-19 AGL-69 AGL-71 AGL-69 AGL-71 AGL-69 AGL-71 AGL-69 AGL-71 AGL-69 AGL-71 AGL-69 AGL-71 AGL-75 AGL-75 AGL-75 AGL-26 AGL-26 AGL-26 AGL-19 AGL-19 AGL-19 AGL-66A AGL-66A AGL-66A AGL-75 AGL-75 AGL-75 AGL-87 AGL-87 AGL-87 AGL-87 AGL-87 AGL-87 AGL-66A AGL-66A AGL-66A AGL-82 AGL-74 AGL-82 AGL-74 AGL-82 AGL-31 AGL-42 AGL-31 AGL-42 AGL-31 AGL-42 AGL-31 AGL-31 AGL-42 AGL-31 AGL-66 AGL-66 AGL-66 AGL-85 AGL-85 AGL-85 AGL-85 AGL-85 AGL-85 AGL-82 AGL-74 AGL-82 AGL-74 AGL-82 AGL-74 AGL-74A AGL-74A AGL-74A AGL-74A AGL-74A AGL-74A AGL-66 AGL-66 AGL-66 AGL-42B AGL-42B AGL-42B AGL-42B 10.25m 10.25m 10.25m 16.95m 16.95m 16.95m 16.95m 16.95m 16.95m 16.95m 16.95m 16.95m 9.65m 9.65m 9.65m 9.65m 9.65m 9.65m 9.65m 9.65m 9.65m 10.25m 10.25m 10.25m 6.7m 6.7m 6.7m 6.7m 6.7m 6.7m 6.7m 6.7m 6.7m AGL-358 AGL-358 AGL-358 AGL-358 AGL-358 AGL-358250 24.55m 24.55m 24.55m 24.55m 24.55m 24.55m 10.25m 10.25m 10.25m 10.25m 10.25m 10.25m 22.4m 22.4m 22.4m 10.25m 10.25m 10.25m 10.25m 10.25m 10.25m 24.55m 24.55m 24.55m 25.5m 25.5m 25.5m 22.4m 22.4m 22.4m 22.4m 22.4m 22.4m 25.5m 25.5m 25.5m 25.5m 25.5m 25.5m 36m 36m 36m 15m 15m 15m 15m 15m 15m 23m 22m 23m 22m 23m 22m 23m 22m 23m 22m 23m 22m 36m 36m 36m 16.2m 15m 16.2m 15m 16.2m 15m 23m 22m 23m 22m 23m 22m 36m 36m 36m 16.2m 16.2m 16.2m 16.2m 16.2m 16.2m AGL-218 AGL-218 AGL-218 AGL-231 AGL-231 AGL-231 AGL-231 AGL-231 AGL-231 34.5m 34.5m 34.5m 34.5m 34.5m 34.5m 34.5m 34.5m 34.5m 24m 24m 24m 24m 24m 24m AGL-218 AGL-218 AGL-218 AGL-242 AGL-242 AGL-242 24m 24m 24m 15.75m 15.75m 15.75m AGL-242 AGL-242 AGL-242 15.75m 15.75m 15.75m 15.75m 15.75m 15.75m AGL-223 AGL-223 AGL-223 AGL-223 AGL-223 AGL-223 AGL-244 AGL-244 AGL-244 AGL-244 AGL-244 AGL-244 44.45m 44.45m 44.45m 44.45m 44.45m 44.45m200 44.45m 44.45m 44.45m 8.3m 8.3m 8.3m 8.3m 8.3m 8.3m 8.3m 8.3m 8.3m AGL-245 AGL-245 AGL-245 AGL-245 AGL-245 AGL-245 15.7m 15.7m 15.7m 15.7m 15.7m 15.7m 7m 7m 7m 26.3m 26.3m 26.3m 26.3m 26.3m 26.3m 15.7m 15.7m 15.7m 7m 7m 7m7m 7m 7m 26.3m 26.3m 26.3m 19.25m 19.25m 19.25m AGL-252 AGL-252 AGL-252 AGL-252 19.25m 19.25m 19.25m 19.25m 19.25m 19.25m150 19.8m 19.8m 19.8m 19.8m 19.8m 19.8m 19.8m 19.8m 19.8m 12.35m 12.35m 12.35m 12.35m 12.35m 12.35m 12.35m 12.35m 12.35mSaprolite 1.39 /8.05 1.49 /14.12 1.03 /10.86 1.55 /10.16 1.29 /9.26 1.31 /11.05 0.91 /17.70 0.80 /9.29 1.04 /8.79 1.15 /24.01 1.56 /11.82 1.18 /12.01 0.99 /14.03 0.83 /8.79 0.97 /7.83 1.03 /11.06 1.17 /20.51 0.96 /12.97 1.22 /16.26 1.11 /8.87 1.18 /21.88 14.00 12.55 11.00 3.25 22.00 15.30 2.00 2.10 8.05 1.20 5.15 5.04 1.15 9.30 7.60 2.00 1.60 3.00 3.00 7.00 2.80 AGL 2007-48 Drillhole number Ferruginous laterite Ni% MRL GOLD PHILS., INC. Limonite 50m AGATA PROJECT Fe% Boulder Nickel - Iron Laterite Saprolite 1.38 /42.47 Cross Section Line 10300N Saprolitic rock 0 2.00 Thickness of intercept 50m Compiled By: Plan No.: Bedrock Drafted By: JBM,PDV Date: Nov 08 FIG 28m End of hole Checked By: JSR Approved By:
  • 109. 9100E 9200E 9300E 9400E 9500E 9600E 9700E 9800E 9900E 10000E 10100E 10200E Ferruginous Laterite 0.60 /42.96 0.73 /40.07 0.71 /43.99 0.62 /41.20 0.68 /42.20 0.63 /42.40 0.61 /40.94 0.58 /45.31 0.65 /41.55 0.65 /45.56 4.00 3.00 1.00 2.00 3.00 3.00 2.00 4.00 1.00 1.90 Limonite 1.07 /28.70 0.99 /45.75 1.05 /40.41 1.07 /42.71 1.05 /32.45 0.98 /46.61 0.99 /46.14 1.01 /49.06 0.82 /42.18 0.94 /41.76 0.99 /41.83 1.06 /39.11 1.60 4.00 3.00 16.00 1.10 4.00 7.00 2.00 1.00 1.00 2.10 1.00300m ASL AGL-34 AGL-34 AGL-34 AGL-34 AGL-34 AGL-34 AGL-45 AGL-45 AGL-45 AGL-45 AGL-54 AGL-54 AGL-54 AGL-56 AGL-56 AGL-56 AGL-56 AGL-56 AGL-56 AGL-64 AGL-64 AGL-64 AGL-52 AGL-52 AGL-52 AGL-54 AGL-54 AGL-54 AGL-57 AGL-57 AGL-57 AGL-58 AGL-58 AGL-58 AGL-64 AGL-64 AGL-64 AGL-70 AGL-70 AGL-70 AGL-49 AGL-49 AGL-49 AGL-49 AGL-49 AGL-49 AGL-52 AGL-52 AGL-52 AGL-57 AGL-57 AGL-57 AGL-58 AGL-58 AGL-58 AGL-70 AGL-70 AGL-70 AGL-61 AGL-61 AGL-61 AGL-61 AGL-61 AGL-61 AGL-47 AGL-47 AGL-47 AGL-47 AGL-47 AGL-47 AGL-361 AGL-361 AGL-361 AGL-361 AGL-361 AGL-361250 25.35m 17m 7.7m 16.3m 11.3m 15m 23.3m 24m 14m 26.4m 24.65m 9.3m 24.7m AGL-215 AGL-215 AGL-215 AGL-215 AGL-215 AGL-215200 Saprolite 0.92 /21.55 1.44 /10.22 0.95 /7.16 1.11 /8.35 1.44 /25.81 0.92 /21.24 1.06 /5.53 1.47 /17.36 1.48 /22.43 1.35 /20.20 0.81 /21.59 0.95 /21.93 1.31 /11.95 1.00 /8.93 6.20 10.00 5.00 6.00 1.00 1.00 1.90 7.00 6.30 3.10 1.00 5.45 6.00 2.00 AGL-170 AGL-170 AGL-170 AGL-170 AGL-170 AGL-170 AGL-168 AGL-168 AGL-168 AGL-168 AGL-168 AGL-168150 12m 10.98m AGL 2007-48 Drillhole number MRL GOLD PHILS., INC. Ferruginous laterite Ni% 50m AGATA PROJECT Limonite Nickel - Iron Laterite Fe% Boulder Cross Section Line 10350N Saprolite 0 1.38 /42.47 50m Compiled By: Plan No.: Saprolitic rock 2.00 Thickness of intercept Drafted By: JBM,PDV Date: Nov 08 FIG Bedrock Checked By: Approved By: 28m End of hole
  • 110. 9500E 9600E 9700E 9800E 9900E 10000E 10100E 10200E 10300E 10400E 10500E 10600E 10700E 10800E 10900E 11000E Ferruginous 0.61 /46.15 0.70 /46.57 0.66 /37.19 0.62 /42.78 0.71 /42.19 0.63 /46.85 0.64 /40.22 0.69 /46.46 0.71 /48.00 Laterite 2.00 3.00 2.00 2.75 2.00 4.65 1.18 3.05 1.95 Limonite 1.22 /44.57 0.87 /44.771.38 /40.94 0.94 /32.31 1.11 /33.44 1.19 /39.44 0.89 /46.97 0.95 /40.94 0.96 /41.73 0.98 /45.84 1.08 /37.46 3.00 3.00 6.00 1.85 6.00 4.15 2.00 2.85 1.00 0.40 1.30300m ASL AGT- 08 AGT- 08 AGT- 08 AGT- 08 AGT- 08 AGT- 08 AGT-12 AGT- 10 AGL- 63 AGT- 11 AGL- 67 AGT-12 AGT- 10 AGL- 63 AGT- 11 AGT- 10 AGL- 63 AGT- 11 AGL- 59 AGL- 59 AGL- 59 AGL- 67 AGT-12 AGL- 73 AGL- 59 AGT- 10 AGL- 63 AGT- 11 AGL- 67 AGT-12 AGL- 73 AGL- 59 AGT- 10 AGL- 63 AGT- 11 AGL- 67 AGL- 59 AGT- 10 AGL- 63 AGT- 11 AGL- 67 AGL- 67 AGL- 73 AGL- 73 AGL- 73 AGL- 73 AGL- 48 AGL- 51 AGT- 09 AGL- 48 AGL- 51 AGT- 09 AGL- 48 AGL- 48 AGL- 51 AGT- 09 AGL- 48 AGL- 51 AGT- 09 AGL- 48 AGL- 51 AGL- 51 AGL- 208 AGL- 208 AGL- 208 AGL- 208 AGL- 208 AGL- 208250 11.6m 11.6m 11.6m 6m 6m 6m 11.6m 11.6m 11.6m 17.2m 17.2m 17.2m 11.2m 11.2m 11.2m 11.2m 11.2m 11.2m 15m 15m 15m 15m 15m 15m 6m 6m 6m 18.75m 18.75m 17.2m 17.2m AGL- 213 27.7m 27.7m 27.7m 27.7m 18.75m 18.75m 18.75m 22.2m 22.2m 22.2m 22.2m 22.2m 22.2m AGL- 213 AGL- 213 AGL- 213 AGL- 213 AGL- 213 AGL- 221 AGL- 221 AGL- 221 AGL- 221 AGL- 221 AGL- 221 28m 28m 28m 28m 28m 28m 14.6m 14.6m 14.6m 14.6m 14.6m 14.6m200 41.5m 41.5m 41.5m 41.5m 41.5m 16.8m 16.8m 16.8m Saprolite 1.20 /8.47 1.53 /11.33 1.17 /14.64 1.41 /9.20 1.63 /12.11 1.08 /9.63 1.43 /9.50 1.00 /9.44 1.51 /10.26 1.15 /11.26 0.91 /28.32 16.8m 16.8m 16.8m 17.4m 17.4m 17.4m 17.4m 15.00 17.00 5.00 6.75 1.80 11.00 3.15 6.87 7.80 9.05 0.60 AGL- 256 AGL- 256 AGL- 256 AGL- 256 AGL- 256 AGL- 256150 AGL- 359 AGL- 359 AGL- 359 AGL- 359 AGL- 359 AGL- 359 9.55m 9.55m 9.55m 9.55m 9.55m 9.55m 9.0m 9.0m 9.0m 9.0m 9.0m 9.0m AGL2007-48 Drillhole number MRL GOLD PHILS., INC. Ferruginous laterite Ni% 50m AGATA PROJECT Limonite Fe% Nickel - Iron Laterite Boulder Cross Section Line 10400N Saprolite 0 1.38 /42.47 Saprolitic rock 50m Compiled By: Plan No.: 2.00 Thickness of intercept Drafted By: JBM,PDV Date: Nov 08 FIG Bedrock Checked By: JSR Approved By: 28m End of hole
  • 111. 9100E 9200E 9300E 9400E 9500E 9600E 9700E 9800E 9900E 10000E 10100E 10200E Ferruginous Laterite 0.75 /27.64 0.64 /43.01 0.64 /43.81 0.67 /38.88 0.67 /46.68 0.79 /39.35 0.58 /41.96 0.68 /46.73 0.71 /47.56 0.78 /51.75 0.75 2.00 3.00 6.00 4.00 3.50 1.00 2.00 2.95 1.00 Limonite 1.25 /41.88 1.20 /34.10 1.14 /43.42 1.17 /38.69 0.90 /44.82 0.98 /46.71 1.08 /30.66 0.92 /45.59 0.93 /48.49 1.54 /36.58 3.25 0.60 3.00 2.00 2.00 2.00 1.00 4.00 1.15 1.95300m ASL AGL-39 AGL-53 AGL-60 AGL-62 AGL-65 AGL-68 AGL-72 AGL-46 AGL-50 AGL-182 AGL-41 AGL-44250 10.35m 17.5m 16.8m 18.45m 19.5m 19.7m 22.85m 15.05m 17.15m AGL-211 17.9m 25.9m 16.5m 28.2m200 Saprolite 1.22 /13.76 1.01 /27.29 0.94 /14.20 1.34 /9.84 1.30 /8.51 1.08 /12.10 1.33 /11.23 1.39 /13.62 1.48 /10.80 0.95 /7.78 1.21 /9.89 0.89 /12.31 1.18 /11.10 1.55 17.30 4.95 7.00 18.00 5.00 5.00 8.00 5.00 3.00 3.00 3.10 4.55 AGL-157 AGL-166150 AGL-153 11.05m 14.9m 17.8m AGL2007-48 Drillhole number MRL GOLD PHILS., INC. Ferruginous laterite Ni% 50m AGATA PROJECT Limonite Fe% Nickel - Iron Laterite Boulder Cross Section Line 10450N Saprolite 0 1.38 /42.47 50m Compiled By: Plan No.: Saprolitic rock 2.00 Thickness of intercept Drafted By: JBM,PDV Date: Nov 08 FIG Bedrock Checked By: Approved By: 28m End of hole
  • 112. 9800E 9900E 10000E 10100E 10200E 10300E 10400E 10500E 10600E 10700E 10800E 10900E 11000E 12000E 12100E Ferruginous 0.62 /50.65 0.53 /52.20 0.71 /51.86 0.68 /52.56 0.60 /51.77 0.61 /50.81 0.66 /49.49 0.78 /49.24 0.74 /49.05 Laterite 4.00 1.00 2.30 3.00 2.90 0.75 3.00 1.00 1.00 Limonite 1.05 /49.82 0.96 /47.21 1.14 /40.67 0.83 /52.59 1.06 /45.81 0.97 /45.13 1.25 /42.06 0.85 /50.05 0.98 /48.74 2.00 3.00 2.00 0.75 2.00 3.00 1.00 1.00 1.00300m ASL AGL-257 AGL-268 AGL-263 AGL-254 AGL-226250 AGL-227 AGL-249 13.5m 20m AGL-255 23.25m 20m 17.7m 18.85m 16m200 27.1m150 AGL-259 AGL-251 AGL-240100 Saprolite 1.61 /15.86 1.07 /12.82 1.20 /13.20 1.00 /8.11 1.06 /10.18 1.27 /9.25 1.05 /10.91 1.21 /9.65 1.36 /17.56 1.07 /10.47 1.05 /16.29 8.00 8.00 3.70 9.00 3.20 4.70 7.00 7.00 1.00 9.00 3.00 AGL2007-48 Drillhole number MRL GOLD PHILS., INC. Ni% 50m Ferruginous laterite AGATA PROJECT Limonite Nickel - Iron Laterite Fe% Cross Section Line 10500N Boulder 0 Saprolite 50m 1.38 /42.47 Compiled By: Plan No.: Saprolitic rock Drafted By: JBM,PDV Date: Nov. 08 2.00 Thickness of intercept FIG Bedrock Checked By: JSR Approved By: 28m End of hole
  • 113. 9400E 9500E 9600E 9700E 9800E 9900E 10000E Ferruginous Laterite 0.68 /49.10 0.68 /48.80 0.50 /37.35 2.45 1.60 0.80 Limonite 1.10 /51.76 1.10 /31.09 3.05 0.40300m ASL AGL-162 AGL-175 AGL-204B AGL-173250 11.6m 15.7m 9.2m 22.8m200 Saprolite 1.09 /8.61 1.57 /8.72 1.41 /20.34 8.70 3.20 3.10150 AGL Drillhole number MRL GOLD PHILS., INC. 2007-48 50m Ferruginous laterite AGATA PROJECT Ni% Limonite Nickel - Iron Laterite Boulder 0 Cross Section Line 10550N Fe% Saprolite 50m Saprolitic rock Compiled By: Plan No.: 1.38 /42.47 Drafted By: JBM, PDV Nov. 08 Bedrock FIG 2.00 Thickness of intercept Checked By: JSR Approved By: 28m End of hole
  • 114. 9700E 9800E 9900E 10000E 10100E 10200E 10300E 10400E 10500E Ferruginous Laterite 0.54 /47.27 0.31 /50.00 0.67 /49.74 0.69 /47.83 0.61 /51.12 0.64 /50.45 0.73 /48.93 4.00 2.00 3.13 2.00 1.00 3.00 1.00 Limonite 0.86 /51.08 1.15 /31.05 0.88 /51.08 0.98 /33.33 0.81 /54.14 1.04 /50.78 0.91 /45.15300m ASL 1.00 1.00 1.00 1.00 1.00 3.00 2.00 AGT -- 05 AGT - 05 AGT - 05 AGT 05 AGT -- 05 AGT 05 AGL -- 237 AGL - 237 AGL - 237 AGL 237 AGL 237 AGL -- 237 AGT -- 04 AGT - 04 AGT 04 AGT -- 47 AGT - 47 AGT - 47 AGT 47 AGT -- 47 AGT 47 AGT -- 04 AGT - 04 AGT 04 AGT -- 06 AGT - 06 AGT - 06 AGT 06 AGT 06 AGT -- 06 AGL -- 241 AGL - 241 AGL - 241 AGL 241 AGL 241 AGL -- 241250 7m 11m 12.1m 16m AGL -- 260 AGL - 260 AGL - 260 AGL 260 AGL -- 260 AGL 260 15m 17.55m AGL -- 266 AGL - 266 AGL - 266 AGL 266 AGL -- 266 AGL 266200 19.6m 20.8m Saprolite 1.73 /9.07 1.06 /9.10 0.98 /9.51 1.17 /10.95 1.14 /9.27 0.98 /9.04 1.04 /8.23 1.09 /6.38 7.30 1.00 3.05 4.50 7.00 6.00 13.60 16.00150 AGL 2007-48 Drillhole number MRL GOLD PHILS., INC. Ni% 50m Ferruginous laterite AGATA PROJECT Limonite Nickel - Iron Laterite Fe% Boulder Cross Section Line 10600N Saprolite 0 1.38 /42.47 50m Compiled By: Plan No.: Saprolitic rock Drafted By: JBM,PDV Date: Nov 08 2.00 Thickness of intercept FIG Checked By: JSR Approved By: Bedrock 28m End of hole
  • 115. 9400E 9500E 9600E 9700E 9800E 9900E 10000E 0.59 /43.73 0.74 /51.15 Ferruginous Laterite 1.20 1.20 0.89 /42.66 0.82 /36.20 1.25 /43.74 Limonite 9.90 1.20 2.20300m ASL AGL-165 AGL-174250 AGL-219 19m 16m AGL-275 14.5m200 Saprolite 18.9m 1.25 /17.28 1.17 /11.40 6.10 2.60150 AGL 2007-48 Drillhole number MRL GOLD PHILS., INC. Ferruginous laterite Ni% 50m AGATA PROJECT Limonite Fe% Nickel - Iron Laterite Boulder Saprolite Cross Section Line 10650N Saprolitic rock 1.38 /42.47 0 2.00 Thickness of intercept 50m Compiled By: Plan No.: Bedrock Drafted By: JBM, PDV Date: Nov. 08 FIG 28m End of hole Checked By: JSR Approved By:
  • 116. 9700E 9800E 9900E 10000E 10100E 10200E 10300E 10400E 10500E 10600E 10700E 10800E 10900E Ferruginous Laterite 0.63 /52.50 0.69 /52.04 0.66 /52.36 0.55 /47.15 2.00 3.00 2.80 1.00 Limonite 1.02 /44.72 1.17 /41.33 0.93 /35.34 0.90 /39.87 1.27 /40.66 1.35 /39.82 1.19 /41.44 1.0 /47.38 0.89 /47.74300m ASL 2.00 1.00 2.00 1.00 2.00 1.00 9.00 2.00 1.00 AGL - 248 AGL - 243 AGL - 234 AGL - 229250 AGL - 273 21.2m 22m 10.35m 23.65m 12m AGL - 278200 AGL - 281 13.5m 14.4m AGL - 283150 AGL - 287 8.1m AGL - 291 20.65m100 25m AGL - 296 Saprolite 1.34 /11.46 1.40 /8.64 1.25 /12.23 0.84 /16.43 0.80 /11.95 1.51 /13.60 1.05 /16.34 1.20 /17.83 1.04 /10.28 1.23 /11.96 8.00 7.00 9.70 2.00 1.25 7.00 2.00 8.00 6.00 8.00 14.65m AGL 2007-48 Drillhole number MRL GOLD PHILS., INC. Ni% Ferruginous laterite 50m AGATA PROJECT Limonite Fe% Boulder Nickel - Iron Laterite Saprolite Cross Section Line 10700N 1.38 /42.47 Saprolitic rock 0 Thickness of intercept Bedrock 2.00 50m Compiled By: Plan No.: Drafted By: JBM,PDV Date: Nov. 08 FIG 28m End of hole Checked By: JSR Approved By:
  • 117. 10000E 10100E 10200E 10300E 10400E 10500E 10600E 10700E 10800E 10900E 11000E 11100E 11200E Ferruginous Laterite 0.74 /34.58 0.66 /51.92 0.73 /48.13 0.72 /46.20 0.74 /49.89 0.68 /49.85 0.75 /51.18 0.70 /49.69 1.00 1.00 1.00 1.00 1.00 3.00 1.00 2.00250 Limonite 0.92 /37.17 0.82 /53.92 0.96 /48.19 0.91 /50.49 0.94 /50.83 0.94 /48.90 0.87 /51.61 AGL - 282 AGT - 02 1.00 1.00 3.00 1.00 2.00 2.00 4.00 AGL - 286 4.6m 10m AGL - 289200 8.55m AGL - 239 11.2m AGL - 253150 AGL - 258 23m AGL - 264 16m 19.4m AGL - 267 AGL - 271100 18m AGL - 274 10.5m 20.3m AGL - 27950 22.45m Saprolite 1.63 /12.30 1.40 /11.07 1.31 /15.01 1.10 /15.97 1.37 /15.28 1.52 /9.73 1.37 /10.54 24.75m 1.10 /10.59 5.00 11.00 8.00 8.00 6.00 12.00 13.00 16.00 AGL2007-48 Drillhole number MRL GOLD PHILS., INC. Ni% Ferruginous laterite 50m AGATA PROJECT Limonite Fe% Boulder Nickel - Iron Laterite Saprolite Cross Section Line 10800N 1.38 /42.47 Saprolitic rock 0 2.00 Thickness of intercept Bedrock 50m Compiled By: Plan No.: Drafted By: JBM,PDV Date: Nov. 08 FIG28m End of hole Checked By: JSR Approved By:
  • 118. 10600E 10700E 10800E 10900E 11000E 11100E 11200E 11300E 114200E 0.60 /43.32 0.73 /47.28 0.64 /49.38 0.77 /51.40 0.72 /50.30 Ferruginous Laterite 1.00 1.10 1.70 4.00 1.00 0.85 /41.78 0.94 /32.22 1.00 /30.75 1.18 /47.87 1.00 /45.91 1.40 /43.41 0.99 /43.11 Limonite250m ASL 0.80 0.75 0.90 4.00 4.30 8.00 1.00200 AGL 246 AGL 250150 9.0m AGL 261 10.0m AGL 270 AGL 265 13.4m AGL 272100 11.8m 10.0m AGL 276 24.2m AGL 28550 24.85m Saprolite 0.86 /8.61 1.16 /15.49 0.94 /10.98 0.92 /15.66 1.31 /9.39 1.43 /13.57 1.47 /12.13 11.15m 1.08 /7.22 2.20 1.60 2.00 2.00 3.00 9.00 10.00 5.00 AGL2007-48 Drillhole number MRL GOLD PHILS., INC. Ferruginous laterite Ni% 50m AGATA PROJECT Limonite Fe% Boulder Nickel - Iron Laterite Saprolite Cross Section Line 10900N Saprolitic rock 1.38 /42.47 0 2.00 Thickness of intercept 50m Compiled By: Plan No.: Bedrock Drafted By: JBM,PDV Date: 11 Nov 0828m FIG End of hole Checked By: JSR Approved By:
  • 119. Appendix 4ANLP QA/QC Procedures
  • 120. MNDORO RESOURCES LIMITED [MRL GOLD PHILS., INC.] AGATA NICKEL LATERITE PROJECTQUALITY ASSURANCE AND QUALITY CONTROL PROCEDURES MRL Gold Phils., Inc. Agata Project Exploration Staff 1
  • 121. Table of Contents 1. INTRODUCTION .................................................................................................................................... 3 2. GEOLOGIC MAPPING ........................................................................................................................... 3 3. TRENCHING........................................................................................................................................... 3 4. SURVEYING ........................................................................................................................................... 3  4.1 Grid Lines Survey ............................................................................................................................... 3  4.2 Topographic Surveying ....................................................................................................................... 4 5. DRILLING ............................................................................................................................................... 4 6. CORE SECURITY ................................................................................................................................... 5 7. CORE LOGGING .................................................................................................................................... 5  7.1 Logging Codes.................................................................................................................................... 5  7.2 Weathering Scale ................................................................................................................................ 6  7.3 Boulder Size ....................................................................................................................................... 6  7.4 Color Code ......................................................................................................................................... 6 8. CORE SAMPLING .................................................................................................................................. 7 9. TRANSPORT OF SAMPLES .................................................................................................................. 7 10. ASSAYING............................................................................................................................................ 8 11. ASSAY DATA QUALITY ANALYSIS ................................................................................................. 8  11.1  Duplicate Samples......................................................................................................................... 8  11.2  Standard Samples .......................................................................................................................... 8  11.3  Check Samples .............................................................................................................................. 9 12. Bulk Density and Moisture Content Determination ................................................................................. 9 13. Documentation ..................................................................................................................................... 10 14. Data Management ................................................................................................................................. 10  2
  • 122. 1. INTRODUCTIONMRL as any other exploration company ensures that sampling procedures and sample quality is up tostandard. It is not only a “must” but also guarantees that the sanctity of the samples is maintained all-throughout from its collection to its transport into the laboratory for analysis.As SOP of the company, a site geologist or mining engineer is assigned on the drill site to make sure thatQA/QC procedures and protocol is consistently followed. The QA/QC measures being implemented in AgataNickel-Iron Laterite Project were adapted from the QC/QA practiced from other MRL Projects and mostlyfrom BHP QC/QA protocol that was used during BHP preliminary drilling evaluation study of Agata LateriteProspect conducted on January – April, 2006.This paper document details protocols being implemented. The project area straddles over Bgy, Lawigan,Tubay, and Bgy. E. Morgado, Santiago in the province of Agusan Del Norte. The field office and main campis located at Barangay E. Morgado.2. GEOLOGIC MAPPINGGeologic map is essential and foremost in any geological studies. As such geologic mapping is done bygeologists. There was previous mapping conducted in the area. However, detailed mapping has to continue toprogressively updating the geologic map on a regular basis as there are new exposures seen on the newlybrushed/cut grid lines, roadcuts, creeks, trenches and test pits as the drilling program advances. The purposeof this activity is: 2.1. To identify and delineate different lithologic units in the area. 2.2. To determine the surficial characteristics and contact of the different laterite horizons as well as bedrock geology.3. TRENCHINGTrenching activities are being undertaken at the western and southern periphery of the current drilling area.The purpose is to expose the laterite profile and determine contacts and thickness of the different lateritehorizons and the bedrock.Determining the different laterite horizons at the periphery of the deposit is useful in the correlation andprojection to the surface profile at the edge of the deposit when doing cross section maps for each grid line.This is very important in ore estimation and formulation of the site development plan where mine pit limitwill be based on the contoured contacts.4. SURVEYINGPrior to the implementation of the proposed drilling program survey team was sent to the area to conduct thefollowing;4.1 Grid Lines SurveyGrid lines were laid in the area using an EDM survey instrument. The grid lines were established everytwenty five (25) meters interval with control stakes marked by flagging tape and aluminum plates for easyreference and location by drill site preparation team.The proposed drill holes are located on a 50 x 50 meters interval along the established gridlines. Gridlines arecontrolled using the local gridlines designated as 10,000N/10,000E as baseline grid. 3
  • 123. 4.2 Topographic SurveyingSimultaneous with the laying out of the gridlines a detailed topographic survey was likewise done in the area.Control points are shot at five (5) meters interval to generate a relatively accurate topographic contour. Drill-hole collar elevation is shot before the start of the drilling activity and after the completion of the drill hole.Reference points BLM, and other government monument established by the concerned government agency(DENR land management) in the area are likewise located on the ground and verified as to geographicalcoordinates and the elevation of these established monuments.To avoid data overloading and instrument error, data collected by the EDM machine are regularlydownloaded into the company computers and regularly processed by the chief GIS. Back-up files are kept inthe Surigao office to avoid data losses in case the computer crashes or bugs down due to virus infestation thatmay destroy the stored files.5. DRILLINGAfter the drill holes have been located, the site preparation team prepares the site for drilling. Drill sites areleveled manually usually by four (4) laborers, thence, a water sump is manually dug with dimensions of 1.5mx 1.5m x 1.5m for water storage and as container for the return water.Drilling was carried out by Construction and Drilling Specialists, Inc. using five (5) man-portable orlightweight rigs during the initial resource delineation. These rigs are Toho DS-Js, YBM-01, GM-50 andtwoTS-50. NW drill rods and tungsten carbide bits will be used except for very dense hard rocks wherediamond bits and NQ drill rods are used. Dry blocking or drilling with no water is usually done in thelimonitic soil. When penetrating into dense bedrocks, wet is employed.In December 2007, TCD Drilling Consultancy Services was contracted to commence the infill drilling. Itdrilled 48 holes with an aggregate of 773.12 meters. Four man-portable drill rigs were brought in namely: 1.)TONE 1, 2) TOHO 1, 3) TOHO 2, and 4) TOHO 3. These rigs are similar to those of the previous contractorbut with single tube using conventional dry drilling techniques. Due to sluggishness of the drilling, theservices of TCD were terminated.On June 18, 2008, JCP Geo-Ex Services, Inc. continued the drilling. It drilled 45 holes up to July 18, 2008with an aggregate of 811.45 m. JCP is currently continuing the drilling operations at ANLP with its four (4)rigs. These rigs are: 1.) KOKEN, 2) YBM, 3) JCP 3, and 4) JCP 11. JCP is employing similar drillingtechniques as that of TCD but is accomplishing it at a substantially faster rate.The drilling activities are constantly monitored by the site geologist. The purpose is to avoid over-drillingand ensure that the bedrock has been penetrated at least three (3) meters as standard operating procedure.There were instances that more than two (2) meters of boulders were encountered at the current drillingactivity.It is also a standard procedure that core checkers who is under the supervision of MRL technical staff arepresent in every drill rig during drilling operation. This is to record drilling activities from core recovery,core run, pull-out and put-back, casing and reaming (Appendix 1 – Drilling Activity Report) and mostimportant is to watch out if the retrieval of core from the core tube is done properly and see to it that therecovered cores are properly placed in the core box and appropriately labeled. Core blocks are placed at thebottom of each run indicating drillhole number, core run, core recovered and current bottom. Core recoveryis checked after each run and recorded in the core recovery sheet (Appendix 2 – Borehole Recovery). 4
  • 124. Before the start of the drilling program the core checkers were properly oriented and trained on the natureand routine of their job. A daily briefing before the start of their work is being done to remind them to keepthe core always in good quality. The core checkers sees to it that the drill site is clean and also safe to work.The Safety Engineer assigned in the area as well as company environmental officers regularly inspects thedrill site. The completed drill holes are immediately rehabilitated and concrete markers are installed withmarkings such as drill hole number, local coordinates and depth of the drill holes.6. CORE SECURITYThe core box is at all times covered by plywood after each retrieved core was placed in the core box toprevent any accidental spillage or contamination. Once a core box is filled up, it is sealed with a plywoodboard and nailed to the core box then tightly tied with rubber packing band. Since this is manuallytransported to the core house some 300 - 500 meters from the drill area, the core box is placed inside a sackand carried by two persons accompanied by MRL supervisor/personnel.The core storage and core house is strictly under the supervision of the site geologist. Only authorizedpersonnel are allowed to enter the core house premise. The filled-up core boxes which are not yet log arestored on an elevated rack and are kept dry and shielded from rain and excessive sunlight. The empty coreboxes are likewise kept in a dry place, cleaned and ready for re use.7. CORE LOGGINGCore logging is absolutely done by the site geologist so that he can gain intimate knowledge of the geologicalaspects of the deposit. Appendix 3 (Drill hole log sheet) shows the logging sheet being used.7.1 Logging Codes Code Laterite Horizon LF Red-brown limonite (ferruginous or overburden) LA Yellow limonite (without Mn staining or veining) LB Yellow limonite (with Mn staining or veining) TM Transition Material (mixed zone of limonite and saprolite SAP Saprolite (gritty clay with <10% boulders of weathered bedrock R_SAP Rocky saprolite (with 10% -50% boulders of weathered bedrock) S_ROCK Saprolitic rock (with 50% - 90% bedrock) D Dunite SD Serpentinized Dunite SS Serpentinite HZ Harzburgite SHZ Serpentinized Dunite 5
  • 125. 7.2 Weathering Scale Laterite Horizon Classification Characteristic Fresh Rock 0 Black/green/light grey, unweathered, dense and hard Saprolite 1 Black/brown, slightly weathered, discolored, still hard 2 Brown/gray 3 Pink / brown/ green 4 Pink/brown/green, friable, relatively low density with some remnant textures 5 Brown, yellow/red, pink/green-grey, very soft, original texture still visible Limonite 5F Yellow-red, very soft “soil like” very low density to compact, mud-like texture Ferricrete 6 Red-black, hard include pisoliteCombinations of the various weathering “stages” could be used i.e.; 2/3, 3/4, 2-5 or 0-3. The first number indouble-digit references indicates the predominant weathering stage, but the numbers separated by a hypheninclude all intermediate weathering stages.7.3 Boulder SizeThe size of the boulders is also recorded to help in the analysis of rock distribution and to determine whetherscreening of these rocks during mining operation is necessary. Code Description 1 < 20 cm (will be acceptable for shipping) 2 20 -50 cm (will be screened at the grizzly) 3 > 50 cm (will be left at the pit)7.4 Color Code Code Color Bl Black Br Brown R Red Bu Blue P Pink O Orange Y Yellow Gn Green Gy Grey W WhiteCombination of colors or color codes could be used i.e. YO – yellow orange, RBr – red brown, etc. 6
  • 126. 8. CORE SAMPLINGWhole core sampling is applied in most of the first 148 holes except for 17 holes wherein the cores were splitfor possible checking of the sampling process, performance of the laboratory and their analytical process at alater time. This is equivalent to a frequency of about 1 in every 5 holes. The purpose of the procedure is toavoid any bias that could occur during splitting and quartering of the core.Splitting of the above-mentioned cores was manually done. The core was laid on a canvass sheet, poundedand crushed by use of a pick, thoroughly mixed, quartered, then the split sample is taken from 2 oppositequarter portions. The other 2 quarters are combined and kept as a duplicate in a properly-sealed and labeledplastic bag and arranged in core boxes according to depth. The duplicates are stored in the core house at theAgata core storage located at Barangay E. Morgado, Santiago, Agusan Del Norte.The next holes (AGL 2008-138 to 361, except for 45 holes in Batch Nos. 2008 AGL 31 to 36) were split-sampled to ensure the availability of reference samples in the future. The cores were cut in half using a coresaw(rocky portions) or spatula. The remaining half is stored in properly-labeled core boxes. Core sampling isdone as much as possible at one (1) meter interval down the hole except at laterite horizon boundaries. Thesample length across the boundaries should only be in the range of 1.0 ± 0.30m to avoid excessively shortand long samples.The sampling interval is marked in the core box by means of masking tape and written on it is the samplingdepth. The sample collected is placed on a plastic bag with dimension of 35cm X 25cm tied with a “magictwister” tie wire. Outside of the plastic bag is written the hole number and sample interval.After the samples are collected it is weighed then sun-dried for about 5 hours and weighed again (Appendix4 – Sample Preparation Sheet) before finally packing for delivery to the laboratory. In cases where there iscontinuous rain the samples are pan dried for 5-6 hours using the constructed drying facility or wood-firedoven. Starting with batch 2008 AGL 18, only the sun-drying was practiced. This simple process aims todetermine moisture content of the samples.9. TRANSPORT OF SAMPLESFrom the core house at the drilling area, the samples are manually carried down to the Agata camp for finalchecking and packing before delivery to the laboratory. Six to eight samples are placed in a rice sackdepending on the weight that should have maximum of 12 kilos sufficient enough for one person to carry itcarefully. The sample haulers are convoyed by MRL personnel.Once at the Agata camp, the samples are checked and inspected for completeness of samples and sample tagsand check any damage to the sample bags. Sample tags are provided by Mcphar. These samples are placed ina rice sack and then in a box within a wooden crate to ensure the safety of the samples during transport.For all of the 2007 cores and batch 2008 AGL 10, the samples are delivered to Mcphar Laboratory throughLBC-Butuan City or LBC-Surigao City with a transmittal receipt. The transportation of the crates containingthe samples is always accompanied by designated MRL staff. The LBC personnel acknowledge the receiptthat they have received the samples with corresponding receipt of the weight and payment of samples(Appendix 5 – Transmittal letter). For batches 2008 AGL 1, 3 and 6, the samples were delivered by MRLpersonnel to McPhar’s sample preparation facility in General Santos City. The assaying was still done intheir laboratory in Makati City.For batches 2008 AGL 13, 16, 18 and onwards, the core samples were delivered to Intertek’s samplepreparation facility in Surigao City. Once prepared, Intertek-Surigao sends the samples to their assaylaboratory in Muntinlupa City, Metro Manila. 7
  • 127. A sample submission form to both McPhar and Intertek Assay Laboratory is included in the package ofsamples (Appendix 6 – Sample Submission Form). Only when there is a discrepancy, McPhar or Intertekwill e-mail MRL, otherwise, the results of the analysis will just come in 3 weeks thereafter by e-mail anddelivery of the hard copies to MRL’s Main Office.10. ASSAYINGIn McPhar, each sample is analyzed for nickel (Ni), cobalt (Co), iron (Fe), magnesia (MgO), alumina(Al2O3), silica (SiO2) and some samples for phosphorous (P). The Ni, Co, Fe, MgO and Al2O3 are assayedby dissolving a 25g charge with a three acid digest using hydrochloric and nitric acid and reading the resultsby Atomic Absorption Spectroscopy (AAS).The SiO2 and P are analyzed by gravimetric process.McPhar conducts regular rechecks on their analysis. This is done by preparing a solution different from thesolution on the regular sample taken on the same pulp of a particular sample.In June 2008, Mindoro changed their primary laboratory for the ANLP Drilling Program to Intertek TestingServices Philippines, Inc. as recommended by consultant F. Roger Billington. Intertek uses X-RayFluorescence (XRF) for nickel laterite assaying. In whole rock analysis, samples are fused using lithiummetaborate and analyzed by XRF. This scheme determines total element concentrations that are then reportedas oxides. The elements analyzed include Ni, Co, Fe, Al2O3, MgO, SiO2, P2O4, CaO, Cr2O3, K2O, MnO,Na2O, TiO2. The loss in ignition (LOI) is also reported.11. ASSAY DATA QUALITY ANALYSISThe objective of the quality control of assays is to check the precision of sample preparation, consistency ofperformance and accuracy of the laboratory’s analytical results. These objectives are attained through:11.1 Duplicate SamplesTo ensure the repeatability or consistency of samples, a duplicate sample is taken one (1) in a batch of everytwenty (20) samples or about 5% of total samples. The duplicate sample is selected subjectively to ascertainthat the full range of different laterite horizons is systematically covered.This duplicate sample is taken by crushing to smaller size fragments the sample then quartered afterthoroughly mixing. One-fourth part of the prepared sample represents the field duplicate sample and thethree-fourth part as regular sample. These samples are sent to the laboratory in the same batch.This on-site procedure of taking duplicate samples was modified in 2008. With split-core sampling, oneduplicate sample in every set of forty (40) is directly obtained, by taking half of the remaining core aftersplitting. Simply put, the field duplicate is just the one-fourth of the whole core. These samples are also sentto the laboratory in the same batch as the mainstream samples. Each subset of 40 samples in a batch contains37 mainstream cores, 1 nickel standard, and 1 field duplicate.11.2 Standard SamplesThe samples are provided by GEOSTATS of Australia. Standard samples are sent to monitor accuracy of theassay process on a batch by batch basis. These standard samples, which have known assay values for Ni arealready pulverized (pulp) weighing about 5 grams contained in 7.5cm X 10cm heavy duty plastic bags,which are tightly sealed in packs. As more standards were later needed, pulverized samples contained in 250-gram bottles were purchased. Repacking into 5-grams was done in the MRL corehouse facility. One (1)standard sample is inserted for every batch of forty five (45) samples or 2% of total samples. Recently, thefrequency of inserting standards was changed to 1 in every set of 40 samples, as discussed in Section 11.1. 8
  • 128. 11.3 Check SamplesSelected pulp rejects from previously analyzed samples from Mcphar weree sent to one independent andinternationally accredited laboratory (Intertek of Jakarta, Indonesia). This is to establish reproducibility ofanalysis and determine the presence or absence of bias between laboratories. Two percent (2) or about one inevery 50 samples will be sent at a regular basis to have a constant check on Mcphar analysis. Samples aretaken on all of the different laterite horizons.An additional check sampling procedure was introduced in 2008. Sample intervals for future pulp rejectswere randomly selected, approximately one in every 40 samples and were pre-numbered. As agreed in thesample preparation protocol, splits of all pulps are prepared by Intertek in its Surigao facility. MRL thencollects all of these split pulps and discreetly inserts pre-selected ones into their pre-assigned numbers beforethe whole batch is sent to Intertek laboratory in Manila. These pulp rejects are therefore analyzed in the samebatch as its source. A total of 122 pulp rejects (3.11 %) were inserted out of 3,924 samples analyzed inIntertek.12. Bulk Density and Moisture Content DeterminationThe bulk density and moisture content is essential in ore reserves estimation. There are several alternatives ofmeasuring density, ranging from laboratory test on small scale sampling and estimation based on bulksampling.Two methodologies are to be undertaken by Mindoro for the determination of Bulk Density (BD). For theferruginous laterite and limonite horizons, bulk samples are collected from test pits and measured on site.The same procedure will be done for the saprolite zone but to be supplemented with another method, i.e., thecollection and measurement of drill core samples.The test pits are designed with an optimal dimension of 0.9m x 1.4m with the wider section oriented in thenorth-south direction. Old test pits, on the other hand, have dimensions of 0.7m x 1.2m. The narrower side isextended by0.5m extension to expose a fresh wall for the sampling.For BD measurements to be done on site, large samples ranging in volume from 0.005 m3 to 0.08 m3 will becollected from test pits. The locations of these test pits must be distributed around the drilling area.To secure representative samples for the BD tests, small pits or “boxes” and channels will be excavated orchiseled into test pit walls. Pre-fabricated plywood with square holes measuring 0.40m x 0.40m and 0.20m x0.20m are used as guides in excavating and chiseling of the pit faces to ensure volume accuracy. Theplywood guides are then nailed to the pit walls to be sampled. Once nailed, chiseling of the area outlined bythe plywood guide begins from the center of the “boxes” chipping towards the “boxes’” boundaries. Toensure consistency of the volume excavated, knife putties are used to smoothen the edges of the “box”. Levelbars and square boxes are regularly utilized to achieve a more or less perfect sampling dimension desired.The chipped samples chiseled from the box falls freely onto a clean canvass placed at the bottom of the pit.There were instances that the final dimension of the excavation in the pit walls became irregular due to thepresence of boulders or rocks that were hard to chisel. In such cases, the final dimension was determined bycarefully measuring the height, width and breadth. These were done by MRL geologists themselves inconjunction with their test pit logging.The bulk samples will be measured for volume, wet weight, and dry weight. The samples are to be containedin plastic bags and weighed using a 16-kg capacity, Korean made (“Choongang” brand), “Ohaus”-type singlebeam field weighing balances equipped with a 5-gram graduation beam. The weighing scales are placed intables exclusively used for this purpose. The weighing instruments are cleaned and calibrated regularly. The 9
  • 129. weight of the plastic bags are to be subtracted from the weighed samples to arrive at the actual weight of thesamples.After determining the wet weight, the samples will be spread evenly in a canvass and sun-dried for initialdrying. Thence, these samples will undergo heating in constructed fire wood/charcoal-fired heating facilitiesfor four to six hours. The samples should be regularly “stirred” to ensure even drying. The dried samples arecooled naturally for about 20 minutes, after which they are collected onto plastic bags for final weighing.The BD and moisture content are computed with the following formulas. Weight (kg) Bulk Density = _______________ ÷ 1000 (kg/ton) Volume (m3) Weight wet – Weight dry % Moisture Content = __________________ x 100 Weight wetFor the drill cores, relatively unbroken portions of 10cm-20cm lengths are selected from drill holes that arespatially well-distributed. The samples are to be coated in paraffin wax to preserve the moisture. These arethen dispatched to McPhar Laboratories wherein the samples will be measured using the water displacementmethod. It is standard practice for Mcphar to check the wax coating and perform re-waxing if needed.At Mcphar, the volume of the core is measured by displacement in a graduated cylinder or by waterdisplacement. The wax is then removed, and the core is weighed (wet). Thence, the sample is oven-dried andthen re-weighed (dry) to be able to calculated the free moisture content.13. DocumentationBefore the cores are logged the undisturbed core are photographed first to show visual presentation of thecore samples. Three (3) core boxes at a time are placed on the core stand. The header of this core standshows the drill hole number and core box numbers. Significant intercepts and other relevant activitiesdeemed necessary for documentation are also photographed.14. Data ManagementThe data entry is done in the field camp and MRL Surigao office but database maintenance and safekeepingis done at Surigao City office. Mindoro’s office has since been transferred to Butuan City (March 2008). Toensure the security of the data, both digital and hard copies of datasets and field sheets are likewisemaintained in Mindoro’s main office in Makati City.Since errors are introduced through incorrect transcription of physical field data, all entries of data into thecomputer are done by geologists especially the core logging and sampling data and by our GIS, ArnoldJoyno.Assay results are entered electronically from digital Excel files e-mailed by the laboratories.Once the datasets are with the Data Management Unit in Makati City, the entries are again re-checked forconsistency vis-à-vis the hard copies. These are also checked for possible logical errors. 10
  • 130. MRL GOLD PHILIPPINES, INC. AGATA NICKEL LATERITE PROJECTDRILLING ACTIVITYDrill Hole No. AGL 2007-29 Date Started 4/14/2007Location Rig 9950N/9550E Date Completed 4/22/2007Rig Type YBM-01 Core Checker Alfie P. Agda Time Activity Date From To 4/14/2007 6:56 8:44 start pull out MW casing rod/ set-up 4/14/2007 8:44 9:50 dismantle engine & tripod / set-up 4/14/2007 9:50 11:05 hauling rig and accessories/ set-up 4/14/2007 11:05 1:20 Lunch break 4/14/2007 1:20 4:58 assemble engine and side pump & tripod/ set-up 4/14/2007 4:58 7:00 End of shift 4/15/2007 7:00 7:20 continue set-up 4/15/2007 7:20 7:45 maintenance check up 4/15/2007 7:45 7:55 start drilling run from 0 to 45m 4/15/2007 7:55 8:00 continue from 0.45m to 0.50 total bottom 0.95m 4/15/2007 8:00 10:46 continue drilling/back to normal operation 4/15/2007 10:46 2:00 Lunch break 4/15/2007 2:00 4:00 continue drilling 4/15/2007 4:00 End of shift 4/16/2007 7:00 11:00 casing 4/16/2007 11:00 3:00 continue drilling 4/16/2007 3:00 End of shift 4/17/2007 7:00 10:26 maintenance/ drilling 4/17/2007 10:26 10:40 drilling 4/17/2007 10:40 11:10 drilling 4/17/2007 11:10 1:15 lunch break 4/17/2007 1:15 1:20 drilling/ retrieve 4/17/2007 1:20 1:35 assemble wireline 4/17/2007 1:35 1:45 pull out NQ rods with core barrel 4/17/2007 1:45 3:00 drilling and retrieving of core 4/17/2007 3:00 casing 4/18/2007 7:40 8:04 start drilling run 0.30 rc 0.28 from 19.9m to 20.20m 4/18/2007 8:04 8:12 retrieve 4/18/2007 8:12 8:20 put down inner tube 4/18/2007 8:20 9:38 continue drilling 4/18/2007 9:38 9:43 retrieve 4/18/2007 9:43 9:50 put down inner tube put down inner tube 4/18/2007 9:50 10:44 drilling 4/18/2007 10:44 10:50 retrieve 4/18/2007 10:50 10:58 put down inner tube 4/18/2007 10:58 11:36 drilling 4/18/2007 11:36 11:50 retrieve 4/18/2007 11:50 11:55 put down inner tube 4/18/2007 11:55 1:25 lunch break 11
  • 131. MRL GOLD PHILIPPINES, INC. AGATA NICKEL LATERITE PROJECT BOREHOLE RECOVERY SHEETDrill Hole No. AGL 2007-29 Location 9950N/9550E Date Started April 14, 2007Total Depth 34.0m Total Rec. 20.11 Date Completed April 22, 2007Rig No. YBM-01 Core Checker Alfie P. Agda Interval Core Run (m) Date Time Core Rec (m) Core Rec % Lithology Comments From To 4/15/2007 7:55 0 0.45 0.45 0.34 75.55 OV 4/15/2007 8:05 0.45 0.95 0.5 0.34 68 OV 4/15/2007 8:35 0.95 1.95 1 0.73 73 OV 4/15/2007 8:45 1.95 2.95 1 1 100 OV 4/15/2007 9:05 2.95 4.05 1.1 1.1 100 OV/Lim 4/15/2007 9:30 4.05 5.55 1.5 1.5 100 OV/Lim 4/15/2007 9:50 5.55 6.85 1.3 1.3 100 Lim 4/15/2007 10:05 6.85 7.85 1 1 100 Lim 4/15/2007 10:30 7.85 9.35 1.5 1.4 93.33 Lim 4/15/2007 10:46 9.35 10.55 1.2 1.2 100 Lim 4/15/2007 2:00 10 55 11 75 1.2 1.06 88 33 4/15/2007 2:40 11.75 12.75 1 0.9 90 4/15/2007 3:10 12.75 13.45 0.7 0.33 47 4/15/2007 13.45 13.6 0.15 0.12 80 4/16/2007 10:00 13.6 13.8 0.2 0.15 75 Sap rock 4/16/2007 11:30 Lunch break 4/16/2007 1:00 13.8 14.8 1 0.43 43 Sap rock 4/16/2007 2:35 14.8 15.6 0.8 0.7 87.5 4/17/2007 7:00 15.6 16.5 0.9 0.63 70 Lim 4/17/2007 16.5 17.4 0.9 0.33 36.66 Lim 4/17/2007 8:00 12.4 10.2 0.8 0.73 91.25 Lim/sap 4/17/2007 9:25 18.2 18.3 0.1 0.1 100 Lim/sap 4/17/2007 10:30 18.3 18.8 0.5 0.5 100 Sap rock 4/17/2007 11:01 18.8 18.85 0.05 0.05 100 Shz 4/17/2007 18.85 19.45 0.55 0.55 91.66 Shz 4/17/2007 19.45 19.9 0.41 0.41 91.1 Sap rock 4/18/2007 8:12 19.9 20.2 0.3 0.28 93.3 Sap rock 4/18/2007 9:43 20.2 20.85 0.65 0.45 69.23 Sap rock 4/18/2007 10:50 20.85 21.5 0.65 0.62 95.38 Sap rock 4/18/2007 11:50 21.5 22 0.5 0.5 100 Sap rock 4/18/2007 1:43 22 22.1 0.1 0.1 100 Sap 4/18/2007 3:35 22.1 22.6 0.1 0.5 100 Sap rock 4/18/2007 4:35 22.6 23.2 0.6 0.54 90 Sap rock 4/18/2007 5:55 23.2 23.85 0.65 0.65 100 Sap rock 4/19/2007 9:05 23.85 24.55 0.7 0.64 91.42 Sap rock 4/19/2007 9:45 24.55 24.75 0.2 0.17 85 Sap 4/19/2007 11:05 24.75 25.3 0.55 0.47 85.45 Sap rock 12
  • 132. MRL GOLD PHILIPPINES, INC. AGATA NICKEL LATERITE PROJECT DRILL HOLE LOG SHEET Drillhole No: AGL-2007-01 Date started: 2/22/2007 Location: Lawigan, Tubay, Agusan del Norte Date completed: 2/27/2007 Co-ordinate E: 9400 Remarks; HOLE TERMINATED Co-ordinate N: 10200 Drilling Co.: CDSI Collar elevation: 293.2m Logged by: RTV Date logged: 2/27/2007 Final Depth: 15.02m Sampl % Rock % Hole_ID From To Litho Colour Wth Comments e _ID Rock Size RecAGL 2007-01 1 0 1 LF DBr,Br 6 57 w/ organicsAGL 2007-01 2 1 2 LF DBr,Br 6 71AGL 2007-01 3 2 3 LF/LA Br,LBr 6.5F 72 32% LFAGL 2007-01 4 3 4 LA Br,LBr 5F 67AGL 2007-01 5 4 5 LB Obr,Yor 5F 68 Mn tracesAGL 2007-01 6 5 6 TM Obr,Yor 5,4 47 LimoniteAGL 2007-01 7 6 7.25 TM Obr,Yor 5,4 68 Saprolite 80% Saprolite, 10%AGL 2007-01 8 7.25 8 TM YG,Obr,GY 5,4,3,2 6 55 Saprolitic RockAGL 2007-01 9 8 9.27 S_ROCK YG,Obr,GY 5,4,3,2 78 55 Saprolite @8.50-8.77MAGL 2007-01 10 9.27 10.2 SAP Br,Ybr,YG,Obr 5,4,3 2 68AGL 2007-01 11 10.2 11.2 S_ROCK Br,Ybr,YG,Obr 5,4,3 3 38AGL 2007-01 12 11.2 12.2 SAP Br,Ybr,YG,Obr 5,4,3 1 54 Vuggy silicifiedAGL 2007-01 13 12.2 13.2 SHz Bl,Gy,Yor 0,1 82 80 fragments @12.82-13.02AGL 2007-01 14 13.2 14.2 SHz Bl,GY 0,1 100 100 BedrockAGL 2007-01 15 14.2 15.02 SHz Bl,GY 0,1 100 100 13
  • 133. MRL GOLD PHILIPPINES, INC. AGATA NICKEL LATERITE PROJECT SAMPLE PREPARATION SHEET Sample Depth (m) WeightHole ID Sample Lithology Remarks No. From To wet dryAGL 2007-01 1 0 1 17751 1.5 1.3 LFAGL 2007-01 2 1 2 17752 2.1 1.75 LFAGL 2007-01 3 2 3 17753 1.9 1.5 LF/LAAGL 2007-01 4 3 4 17754 1.6 1.3 LAAGL 2007-01 5 4 5 17755 1.35 0.95 LBAGL 2007-01 6 5 6 17756 0.7 0.6 TM_LIMAGL 2007-01 7 6 7 17757 1 0.8 TM_SAPAGL 2007-01 8 7 8 17758 1.6 14 R_SAPAGL 2007-01 9 8 9.25 17759 1.6 1.5 S_ROCKAGL 2007-01 10 9.25 10.27 17760 2.1 1.8 SAPAGL 2007-01 11 10.27 11.27 17761 0.6 0.5 S_ROCKAGL 2007-01 12 11.27 12.27 17762 1.3 1.25 SAPAGL 2007-01 13 12.27 13.27 17763 3.75 3.7 SHZAGL 2007-01 14 13.27 14.27 17764 4.9 4.8 SHZAGL 2007-01 15 14.27 15.02 17765 3.95 3.9 SHZ 14
  • 134. MRLGOLD PHILS.,INC. TRANSMITTAL RECEIPT FOR COURIERDATE : March 29, 2007ATTENTION: LBC Express, P. Burgos St., Butuan City Please acknowledgereceipt of the following (in duplicate copies):1 Crate #1 (28 bags) 55 kg. Tracking no. 60196947952 Crate #2 (25 bags) 62 kg. Tracking no. 60196946173 Crate #3 (27 bags) 66 kg. Tracking no. 60196946374 Crate #4 (26 bags) 74 kg. Tracking no. 60196947355 Crate #5 (22 bags) 44 kg. Tracking no. 60196955866 Crate #6 (15 bags) 35 kg. Tracking no. 6019694775Dispatched by: Danilo F. Odtojan Date and time: 3/29/075:40 pmDelivered by: Danilo F. Odtojan Date and time: 3/29/075:40 pmReceived by: (LBC personnel) Rico A. Orjansa Date and time received:3/29/07 5:40 pmPlease use separate sheet when necessary.D:MRL-SURIGAO PROJECTDOCUMENTSFORMSLBC_BXU_TR_24Mar07.doc Eledia Apt., Tuazon Village, Barangay Luna, Surigao City Telefax No.: (6386)826-2658 • www.mindoro.com 15
  • 135. Form No. SMP - 001SAMPLE SUBMISSION FORMTO : McPhar Assay Laboratory BJS Compound 1869 P. Domingo Street Tel. No. 896-1656 / 896-1681 / 896-7973 Fax No. 890-Makati, Metro Manila 0290 email lab@mcphar.com.phFROM : MRL Gold Phils., Inc. Unit 17b, Pearl of the Orient Bldg. 1318 Roxas Tel. No. 02 5258869 / 086 8262658 Fax No. email No. ofBlvd. corner P. Faura, Ermita Manila Elidia Apt., Tuazon Vill., KM.3, Surigao Samples: 195 CORE DISPATCH No. 2007 AGL 02CitySAMPLE DESCRIPTION NO. SAMPLE PREPARATION ELEMENTS ASSAY METHOD(S) OTHER TYPE INSTRUCTIONS REQUIRED SEE McPHAR REF. INSTRUCTI SEE McPHAR REF. DOC DOC NO. SMP-003 ON NO. SMP-003 SECTIONS SP1 TO SP9Box # 1 Dissolving a 25g:17894 - 17910 17 core charge with a two acid digest. (usingBox # 2 hydrochloric and nitric Ni, Co, Fe, Mg acid) and reading the17911 - 17937 27 core and Al, results by atomic absorptionBox # 3 spectroscopy (AAS)17938 - 17960 23 coreBox # 417961 - 17988 28 core Si Analysis by a Si gravimeter process.Box # 517989 - 17800 12 core17501 - 17519 19 coreBox # 617520 - 17545 26 core For Density Analysis : After Density Analysis return to tagBox # 7 no. From : 17585 back to 17563 17586 back to 1756517546 - 17562 17 core 17587 back to 17570 17588 back to 17581Box # 8 Note : All samples must be analyzed for the 6 elements as17563 - 17588 26 core indicatedReporting Send results and invoice to person indicated below Send results and invoice to : Fax results to : E-mail : edsel@mrlgold.com.ph/joe@mrlgold.com.phSubmitted by Ferland Tagura Date 14-Apr-07TEL: 896-1656; 896-1681; 896-7973 FAX: (63-2) 815-8195; (63-2) 761-2080FAX: (63-2) 890-0290 e-mail: mcphar@info.com.ph email: mcpharlab@portalinc.com 16

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