The Padre Antonio Project is a copper exploration project located in western Guatemala. The project covers an area of 24 square kilometers and is located near the village of Santa Eulalia. Regional geology includes Paleozoic metamorphic rocks overlain by sedimentary units deposited from the Carboniferous through Tertiary periods. Locally, sandstones and limestones are in fault contact with slates north of the project area. Soil and geophysical surveys have identified anomalous copper zones interpreted as mineralized breccia pipes controlled by a reducing environment. The working geological model proposes a sediment-hosted copper deposit.

2. THE PADRE ANTONIO COPPER PROJECT
Summary
The Padre Antonio Project is located in western Guatemala, specifically, east of the village of Santa Eulalia
in the Huehuetenango Department. The property has an area of 24 km2 in rugged terrain, which range in
elevation between 2,000 and 2,500 meters (AMSL).
The main access to the property from Guatemala City is through 246 km of reasonably kept highway CA-
1 to the city of Huehuetenango. From Huehuetenango one travels north for another 87 kms to the village
of Santa Eulalia, passing through Chiantla, La Capellanía, San Juan Ixcoy and Soloma.
Temperatures are pleasant through most the year ranging from 25 to 30º C during the summer and 15 to
25º C during the winter months.
There is little mining tradition in the Santa Eulalia area. The Padre Antonio Project was discovered by an
Italian immigrant turned prospector after he organized a stream sediment sampling of the Tziquiná river
that crosses the area. Near the highest copper value samples, located almost at the centre of the license,
Mr. Bruno Montuori then organized the digging of a 7 meters pit that found massive chalcopyrite and
abundant secondary copper minerals.
Creso Resources Inc of Montreal, Canada, bought the mining rights from Mr. Mortuori early in 2005. In
mid 2005 Creso completed a self potential (S.P.) survey over one square kilometer around the discovery
pit and a soil sampling survey for the same area. The SP survey discovered four vertical conductors around
70 meters in diameters and at least 75 meters in depth. The geochemical soil survey confirmed the S.P.
results.
The regional geology of the Huehuetenango area belongs to that of the North American Plate in spite that
it is bounded, to the south, by a sequence of active faults (Polochic, Río Negro, etc.) that represent the
North American – Caribbean Plate boundary.
The oldest rocks in the region are metamorphic Paleozoic schist of the Chuacús Series, Pelagic shales and
mudstones are then deposited over the metamorphic basement during the Carboniferous and massive
carbonates are subsequently deposited over the pelagic sediments during the Permian. At the end of the
Permian, there is a hiatus of approximately 51 million years. Uplifting and possibly the first interplate
tectonism resulted in the abduction of the oldest ophiolitic belt (Huehuetenango ophiolites) of the region.
During the Upper Jurassic more carbonates of the Todos Santos Fm. are deposited. The Upper Cretaceous,
and Lower Tertiary periods are tectonically very active with the deposition of clastic and volcanoclastic
deposits and the intrusion of granitic rocks. Also during these periods, occurs the emplacement of several
of the ophilitic complexes of Central Guatemala.
Locally, sandstones with interbedded of limestone are in fault contact with slates to the north of the
Tziquiná River which occupies the trace of the fault. The discovery mineralization is contained entirely
within the volcano-sedimentary unit. Our working model proposes the existence of a sedimentary type
deposit in the area. The vertical pipe-like zones of conductivity discovered by the self-potential (SP) survey
done by Creso, are interpreted as mineralized vertical breccias pipes controlled by the presence of a
reduction environment and organic material.
The soil survey done at 100x100 m spacing in the previously cut geophysical grid and a Spatiotemporal
Geochemical Hydrocarbons (SGH) testing of the same area was carried out. The soil survey confirmed the

3. presence of localized anomalous copper zones. These anomalous Cu zones are however displaced
downslope which is normal in steep tropical weathering environments.
Property Description and Location
The present description covers the exploration license Padre Antonio folder number LEXR-702 in
Guatemala, in the Municipality of Santa Eulalia in Huehuetenango (Fig. 103).
Figure 1. Location of the Padre Antonio copper project in Huehuetenango, Guatemala. Each square in the
map to the left represents one square kilometer.
The municipality of Santa Eulalia limits to the north with San Mateo Ixtatán and Barillas of the
Huehuetenango Department to the east with Chajul and Nebaj (Quiché Department) and to the south
with Soloma y San Rafael la Independencia (Huehuetenango Department).
It takes almost a day to travel by car from Guatemala City to the town of Huehuetenango. From there,
one travels north for about 6 km to the village of Chiantla, and then another 15 km north to La Capellanía.
Another 40 km north take us to San Juan Ixcoy, then another 13 km to Soloma, and then another 13 km
to the village of Santa Eulalia.
The present limits of each of this property follow in the Table 12.

4. Table 1. Coordinates of the exploration license Padre Antonio in Huehuetenango, Zone 15.
Corner UTM E UTM N
1 662,000 1745500
2 670,000 1745500
3 670,000 1742500
4 662,000 1742500
Geological Setting
Regional Geology
A map of the regional geology of Guatemala was presented in Fig. 44. The oldest rocks in the region are
Paleozoic. They are mainly composed by schists and other metamorphic rocks of the Pre-Permian Chuacús
Series (Fig. 104A). Around 300 million years ago, during the Carboniferous, a deposition of marine
sediments and conglomerates near the beach was followed by sandstones and shales at greater depths
(Santa Rosa Group). Simultaneously, granitic and dioritic batholiths intruded the Paleozoic basement (Fig.
104B).
During the upper Jurassic to the Lower Cretaceous Period, deposition of limestones and other carbonate
rocks occurred (Todos Santos Formation). A hiatus of nearly 51 million years during the Triassic Period is
present, when the sea retreated and no significant deposition occurred (Fig. 104C).
Exposure of these rocks to oxidizing conditions in a tropical environment may account for the formation
of the Upper Jurassic red beds (Pindell, 1994).
The Upper Cretaceous to Lower Tertiary Periods were very active, with the deposition of more clastic
sediments, volcanoclastic deposits (Jalomáx Fm.), and the intrusion of granitic, dioritic, and ultramafic
bodies corresponding to the Ixcoy, Cobán, Campur, and Verapaz Fms., and the Petén group. So far, five
ophiolitic events that occurred along the major Polochic and Motagua Faults have been identified (Fig
104D). These ultramafic bodies average 80 km in length and 0.2 to 20 km in width. They are generally
formed by a heterogenic mix of websterites, lherzolites and dunites, with subordinate amounts of basalts
and gabbros. Seawater and a heat source associated with the subduction event created a perfect
environment to start the serpentinization of these rocks.
The Paleocene and Eocene Periods witnessed the deposition of more marine sediments, mainly
conglomerates, near the shores and sandstones and shales at greater depths (Subinal Fm.). During the
Eocene Period more red beds were formed, which indicates another period of sea-regression. This hiatus
is characteristic of the entire Caribbean Plate (Fig. 104E).
The Holocene formations are represented by Quaternary alluvial and deluvial material as well as by lavas
and tuffs from active volcanoes (Guastatoya, Toledo, Desempeño, Lacantun, Caribe, Río Dulce, and other
younger formations, Fig. 104F).

5. Figure 2. Scheme of the Geological Evolution of Central Guatemala.
Local Geology
Only limited local mapping has been conducted to date, mostly by P. Geo. Ricardo Valls. The most
important point was the discovery of a large tonalitic intrusive that could be the source of mineralization
in the area (Fig. 105).

6. Figure 3. Outcrop of a tonalitic intrusive near Padre Antonio license.
The current working geological model for the Padre Antonio license is shown in Fig. 106.
Figure 4. Current working geological model of the Padre Antonio license.
Locally, sandstones with interbedded clays toped by limestones are in a fault contact with slates to the
north of the Tziquiná River which occupies the trace of the fault. The discovery mineralization is contained
entirely within the volcano-sedimentary unit associated to a highly tectonized zone in a reducing
environment. The vertical pipe-like zones of conductivity discovered by the self-potential (SP) survey done
by the Client are interpreted as mineralized breccias pipes.

7. Deposit Types
Sedimentary Copper Deposits
Capsule Description
Stratabound disseminations of native copper, chalcocite, bornite and chalcopyrite in a variety of
continental sedimentary rocks including black shale, sandstone and limestone. These sequences are
typically underlain by, or interbedded with, redbed sandstones with evaporite sequences. Sulphides are
typically hosted by grey, green or white strata.
Tectonic Settings
Predominantly rift environments located in both intracontinental and continental-margin settings; they
can also occur in continental-arc and back- arc settings.
Depositional Environment/Geological Setting
The characteristic presence of redbed and evaporite sequences points to deposition of sediments in a hot,
arid to semi-arid paleoclimate near the paleoequator. The host rocks are produced in a variety of local
anoxic depositional environments, including deltaic sediments, Sabkha-type lagoonal carbonate basins or
high intertidal mudflats, and shallow “coal basins”.
Age of Mineralization
Proterozoic or younger; Middle Proterozoic, Permian and early Mesozoic most favourable ages.

8. Host/Associated Rock Types
Most deposits are hosted by pale gray to black shale, but some are found in sandstone, siltstone,
limestone, silt-rich dolomite, laminated carbonate units (sabkha origin) and quartzites.
Favourable horizons contain reactive organic matter or sulphur. Algal mats, mudcracks and scour-and-fill
structures indicative of shallow-water deposition are common. Local channel conglomerate beds
sometimes contain wood fragments. The associated sequence includes redbed sediments, evaporites and
sometimes volcanics. In many cases the rift-related layered rocks rest unconformably on older basement
rocks.
Deposit Form
Orebodies are generally conformable with the bedding, although in detail ore may transgress bedding at
low angles and is typically more transgressive near the margins of the deposit.
Mineralized horizons are from tens of centimetres to several metres thick (rarely more than 5 m); they
are often contained within broader zones of anomalous copper values. Tabular ore zones extend laterally
for kilometres to tens of kilometres. Less commonly the deposits are elongate lobes. Some deposits have
a C-shaped, “roll front” configuration in cross-section. Common lateral and/or vertical zoning is from
hematite (barren) > chalcocite > bornite > chalcopyrite > pyrite, or from a chalcocite-bornite core grading
to chalcopyrite with peripheral galena and sphalerite.
Texture/Structure
Sulphides are fine grained and occur as disseminations, concentrated along bedding, particularly the
coarser grained fractions, or as intergranular cement. Sharp-walled cracks or veinlets (< 1 cm thick, < than
a metre in length) of chalcopyrite, bornite, chalcocite, galena, sphalerite or barite with calcite occur in
some deposits, but are not an important component of the ore. Pyrite can be framboidal or colloform. Cu
minerals often replace pyrite grains, framboids and nodules; less commonly they form pseudomorphs of
sulphate nodules or blade-shaped gypsum/anhydrite grains. They also cluster around carbonaceous clots
or fragments.
Ore Mineralogy (Principal and subordinate)
Chalcocite, bornite and chalcopyrite; native copper in some deposits. Pyrite is abundant in rocks outside
the ore zones. Enargite, digenite, djurleite, sphalerite, galena, tennantite, native silver with minor Co-
pyrite and Ge minerals. In many deposits carrollite (CuCo2S4) is a rare mineral, however, it is common in
the Central African Copperbelt.
Gangue Mineralogy (Principal and subordinate)
Not well documented; in several deposits carbonate, quartz and feldspar formed synchronously with the
ore minerals and exhibit zonal patterns that are sympathetic with the ore minerals. They infill, replace or
overgrow detrital or earlier authigenic phases.
Alteration Mineralogy
Lateral or underlying reduced zones of green, white or grey colour in redbed successions. In the Montana
deposits these zones contain chlorite, magnetite and/or pyrite. Barren, hematite-rich, red zones grade
into ore in the Kupferschiefer. Kupferschiefer ore hosts also show elevated vitrinite reflectance compared
to equivalent stratigraphic units.
Weathering

9. Surface exposures may be totally leached or have malachite and azurite staining. Near surface secondary
chalcocite enrichment is common.
Ore Controls
Most sediment-hosted Cu deposits are associated with the sag phase of continental rifts characterized by
deposition of shallow-water sediments represented by redbed sequences and evaporites. These formed
in hot, arid to semi-arid paleoclimates which normally occur within 20-30° of the palaeoequator. Host
rocks are typically black, grey or green reduced sediments with disseminated pyrite or organics. The main
control on fluid flow from the source to redoxcline is primary permeability within specific rock units,
commonly coarse-grained sandstones. In some districts deposits are located within coarser grained
sediments on the flanks of basement highs. Growth faults provide local controls in some deposits (e.g.,
Spar Lake).
Associated Deposit Types
Sandstone U, volcanic redbed Cu, Kipushi Cu-Pb-Zn, evaporite halite, sylvite, gypsum and anhydrite, and
natural gas (mainly CH4) in Poland.
Genetic Models
Traditionally these deposits have been regarded as syngenetic, analogous to Sedex deposits or late
hydrothermal epigenetic deposits. Currently most researchers emphasize a two-stage diagenetic model.
Carbonaceous shales, sandstones and limestones deposited in reducing, shallow subaqueous
environments undergo diagenesis which converts the sulphur in these sediments to pyrite. At a later stage
during diagenesis, saline low-temperature brines carrying copper from a distant source follow permeable
units, such as oxidized redbed sandstones, until they encounter a reducing unit. At this point a redoxcline
is established with a cupriferous zone extending “downstream” until it gradually fades into the
unmineralized, often pyritic, reducing unit. The source of the metals is unresolved, with possible choices
including underlying volcanic rocks, labile sediments, basement rocks or intrusions.
Exploration Guides
Geochemical Signature
Elevated values of Cu, Ag, Pb, Zn and Cd are found in host rocks, sometimes with weaker Hg, Mo, V, U, Co
and Ge anomalies. Dark streaks and specks in suitable rocks should be analysed as they may be sulphides,
such as chalcocite.
Geophysical Signature
Weak radioactivity in some deposits.
Other Exploration Guides
Deposits often occur near the transition from redbeds to other units which is marked by the distinctive
change in colour from red or purple to grey, green or black. The basal reduced unit within the stratigraphy
overlying the redbeds will most often carry the highest-grade mineralization.
Economic Factors
Typical Grade and Tonnage
Average deposit contains 22 Mt grading 2.1 % Cu and 23 g/t Ag (Mosier et al., 1986). Approximately 20%
of these deposits average 0.24 % Co. The Lubin deposit contains 2600 Mt of >2.0% Cu and ~ 30-80 g/t Ag.
Spar Lake pre-production reserves were 58 Mt grading 0.76% Cu and 54 g/t Ag. Montanore contains 134.5

10. Mt grading 0.74% Cu and 60 g/t Ag, while Rock Creek has reserves of 143.7 Mt containing 0.68 % Cu and
51 g/t Ag.
Economic Limitations
These relatively thin horizons require higher grades because they are typically mined by underground
methods. The polymetallic nature and broad lateral extent of sediment-hosted Cu deposits make them
attractive.
Importance
These deposits are the second most important source of copper world-wide after porphyry Cu deposits.
Mineralization
The geological environment of the Huehuetenango region is favorable for the location of Sedimentary
type of copper, lead, and zinc deposits. So far, the most interesting discovery lies north of Santa Eulalia
village, where they have intersected in a 7 meters handmade pit, massive chalcopyrite associated with
quartz veining (Fig. 107) and abundant disseminated secondary copper mineralization (bornite, covelline,
cubanite, etc.) in the matrix of the volcano-sedimentary unit that hosts the chalcopyrite.
Figure 5. Massive chalcopyrite associated to a quartz vein unearthed by a 7 meter pit over a copper anomaly
at Padre Antonio license.
An assay done to this massive chalcopyrite at the SGS labs resulted in 20.7% Cu. A self-potential (SP) survey
done by Consulting Geophysicist Juan Pablo Ligorria in May 2005 found several pipe-like vertical zones of
conductivity. We believe that the chalcopyrite found in the pit corresponds to one of these vertical pipe-
like zones of conductivity. Disseminated secondary copper sulphides intersected by the pit above the
massive chalcopyrite may correspond to supergene enrichment. Evidently this far the information that
we have in the Padre Antonio Project, points towards a deposit model that is best typified by the
sedimentary type rather than the porphyry type deposits.

11. Exploration
The padre Antonio Project was discovered as a result of a limited active sediment survey done by Mr.
Bruno Montuori. Some thirteen (13) samples were taken and send for assaying to BSi, Inc., laboratory.
Multielement ICP and AA finished Fire Assay was used to analyze these samples. Figure 108 shows the
sample location.
Figure 6. Discovery sampling location. The red square represents the location of the discovery pit.
A seven (7) meter handmade pit found at the bottom massive chalcopyrite and secondary copper minerals
(chalcocite, covellite, bornite, etc.) above the massive primary mineralization. When the writer visited the
site, the pit was half full of water, so it was not possible to observe the primary mineralization. Fig. 109
shows a photography of the pit. Notice the oxidized yellowish layer above and the volcanoclastic
(sandstone) with disseminate secondary copper minerals. A quartzose brecciated material follows just
above the water.
Figure 7. Photograph of the discovery pit in Padre Antonio.

12. Photogrametric and satellite image interpretation were commissioned to PhotoSat Inc. resulting in
multiple alteration zones in the surroundings of the Padre Antonio Project (Fig. 110). Armed with a
portable XRF pistol, geologists Ricardo Valls and Julio Pérez systematically tested the alteration zones near
the Padre Antonio Project as shown in Fig. 111.
Figure 8. Satellite interpretation of alterations within the Huehuetenango District.
Many of the targets have been field checked by the client´s geologists and field determinations using the
portable XRF equipment has confirmed the presence of copper, lead, zinc as well as traces of gold in
surface samples.
Figure 9. Geologist Julio Roberto Pérez (RIP) measures the geochemical signature of an alteration zone using
a portable XRF pistol.

13. The Self-Potential survey of a 1 square kilometer around the pit that intersected the massive chalcopyrite
identified several vertical conductors (ore shoots?) that correspond on surface with zone of incipient
brecciation and a significant decrease in the grain size of the volcano-sedimentary unit (Fig. 112).
Figure 10. Carrot model of the mineralization at Padre Antonio according to the SP survey.
The SP survey was done by geophysicist Juan Pablo Ligorría during May of 2005. This survey found four
vertical zones of conductivity deeper than 100 meters. Zone of conductivity A coincides with the discovery
pit so it is deduced that the conductivity seems to be caused by primary sulphides. We have adopted
Steven E. Bushnell (1988) breccia pipe model described in his paper “Mineralization at Cananea, Sonora,
Mexico and the paragenesis and zoning of Breccia Pipes in Quartzofeldspathic Rocks (sic)” to explain the
zones of conductivity.
Using the same grid, we conducted a soil survey and a Spatiotemporal Geochemical Hydrocarbons (SGH)
test of the same area. The SGH results (Fig. 113) confirmed the presence of these vertical anomalies.
Figure 11. Results of the SGH survey over Padre Antonio.

14. All samples for the soil survey were taken from a standard depth of 10 cm using a shovel. The instrument
was cleaned between samples. Samples weighting up to 500 grams were placed in properly marked
Zipplog plastic bags and delivered by truck to BSi Laboratories in Guatemala for standard preparation and
analysis. Pulps were later send to SGS Laboratories for the SGH study.
Samples were prepared at BSi Laboratories in Guatemala, a lab with all the necessary certifications and
the necessary equipment for this task. Analyses were completed at Reno by the same lab. The SGH study
was conducted at SGS Laboratories in Canada. Both labs have the necessary certifications. Normal
measures for the labeling, transportation, and handling of the samples was conducted by technical
personnel with many years of experience on these activities.
The soil survey was extremely useful for mapping and for confirming the geophysical targets. As you can
see on Fig. 114, all the anomalies of the cluster analysis identifying copper targets are displaced
downslope but correspond unequivocally to the geophysical targets. Mobile elements such as Copper and
Zinc are often displaced by topographic effects and ground water in tropical environments.
Figure 12. Cluster analysis for copper over the central area of Padre Antonio license.
Data Verification
The author had the opportunity to test repeatedly the presence of mineralization in the area and in the
main pit (which is now closed). Table 13 shows the results of three chanel samples taken from a second
pit, located 2 metre east of the first one, as well as one additional sample (Sample number GG-1) which
was collected from the bottom of the first pit by geologist Julio Luna in 2006. Sample GG-1 was analysed
by SGS Laboratories in Canada.
Table 2. Results of the independent sampling at Padre Antonio.
These four grab sample results clearly demonstrate that there is copper and gold mineralization present
in interesting and potentially significant tenors at the Padre Antonio property. The results do confirm the
highly anomalous nature of the copper mineralization in the area, as previously reported.
Sample Cu, ppm Zn, ppm Au, g/t Ag, g/t As, ppm Mo, ppm S, %
Meter 2 52.60 54.00 > 5.00 0.10 8.00 1.10 0.07
Meter 3 4.00 34.00 > 5.00 0.10 4.00 0.60 0.17
Meter 4 2440.80 97.00 > 5.00 1.00 34.00 27.80 2.58
GG-1 268000.00 > 500.00 0.15 5.20 > 20.00 N.D. 26.70

15. Interpretation and Conclusions
Let us summarize the evidence available from the Padre Antonio Project. First, we have anomalous high
copper values in sediment samples within the project area. Second, a seven (7) meter pit, hand dug at the
location of the highest copper value, found chalcopyrite and disseminated secondary copper minerals.
Third, a self-potential survey done over one square kilometer with the pit at the center, showed four (4)
pipe-like zones of conductivity (The pit where the chalcopyrite was found is directly above the pipe-like
zone of conductivity “A”). Forth, an SGH survey confirmed the copper nature of the geophysical
anomalies. Fifth, the interpretation of the satellite images clearly shows a large area of hydrothermal
alteration that has been field tested by the author.
All the above summarized evidence points out toward a sedimentary type of copper deposit that have
pipe-like mineralized under the volcanoclastic unit in fault contact with the slates.