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Vendome ni 43 101

  1. 1. TECHNICAL REPORT ON THE POLYMETALLIC RESOURCES ON THE San Javier, La Diana, and Fiscal 2012 Properties State of Guerrero, Mexico ON BEHALF OF VENDOME RESOURCES CORP. 133 Richmond Street West Suite 403, Toronto, Ontario, Canada, M5H 2L3 Report for NI 43-101 BY: G. S. CARTER, P. ENG. October 17, 2012 BROAD OAK ASSOCIATES 365 Bay Street Suite 304 Toronto, Ontario Canada, M5H 2V1Vendome Properties 1 Broad Oak Associates
  2. 2. Date and Signature Page CERTIFICATE of AUTHORI, Geoffrey S. Carter P. Eng., do hereby certify that:1 I am a Principal of: Broad Oak Associates 365 Bay Street, Suite 304 Toronto, Ontario, Canada, M5H 2V12. I graduated with an Honours Bachelor of Science (1968) degree in Mining Engineering from University of Wales, University College Cardiff, South Wales, UK in 19683. I am a member of the Professional Engineering Association of Manitoba, (5341) and I am a Professional Engineer in Ontario, (100084354). I am also a member of the Canadian Institute of Mining and Metallurgy.4. I have practiced my profession in excess of forty years.5. I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 43-101”) and certify that by reason of my education and past relevant work experience, I fulfill with requirements to be a “qualified person” for the purposes of NI 43-101. This report is based on my personal review of information provided by the Issuer and on discussions with the Issuer’s representatives. My relevant experience for the purpose of this report is:  Anglo American Corporation 1968-1983, Mine Engineer, General Mine Foreman, Hudson Bay Mining and Smelting Limited, Vice President Operations Inspiration Coal.  Senior Mining Engineer - Project Technical Evaluation Hudson Bay Mining and Smelting Co. Limited 1980-1981  Mining Analyst, Midland Doherty, 1983-1986  Author of several Technical Reports, 2002-20126. I am responsible for the preparation of the technical report and titled Technical Report on the Polymetallic Resources on the San Javier, La Diana, and San Miquel Properties, dated October 17, 2012, (the Technical Report). I visited the property on July 6 and 7, 2010 and again on December 5 and 6, 2011.7. I have had no prior involvement with the properties that are the subject of the Technical Report.Vendome Properties 2 Broad Oak Associates
  3. 3. 8. As of the date of this certificate, to the best of my knowledge, information and belief, the technical report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading.9. I am independent of the issuer applying all of the tests in section 1.5 of National Instrument 43-101.10. I have read National Instrument 43-101 and Form 43-101F1, and the Technical Report has been prepared in compliance with that instrument and form.11. 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, including electronic publication in the public company files on their websites accessible by the public, of the Technical Report.Dated the 17th day of October, 2012. Seal or Stamp Geoffrey S. CarterPrinted name of Geoffrey S. Carter, P. Eng. Geoffrey S. Carter Broad Oak Associates 365 Bay Street, Suite 304 Toronto, Ontario Canada, M5H 2V1 Tel: 416-594-6672 Fax: 416-594-3446 Email: BOA@Broadoak.caVendome Properties 3 Broad Oak Associates
  4. 4. TABLE OF CONTENTS Page Number1.0 Summary 62.0 Introduction 73.0 Reliance on Other Experts 74.0 Property Description and Location 85.0 Accessibility, Climate, Local Resources, Infrastructure, and Physiography 126.0 History 137.0 Geological Setting and Mineralization 168.0 Deposit Types 199.0 Exploration 1910.0 Drilling 3611.0 Sample Preparation, Analyses, and Security 3612.0 Data Verification 3913.0 Mineral Processing and Metallurgical Testing 4114.0 Mineral Resource Estimates 4115.0 Mineral Reserve Estimates 4116.0 Mining Methods 4217.0 Recovery Methods 4218.0 Project Infrastructure 4219.0 Market Studies and Contracts 4220.0 Environmental Studies, Permitting and Social or Community Impact 4221.0 Capital and Operating Costs 4222.0 Economic Analysis 4223.0 Adjacent Properties 4324.0 Other Relevant Data and Information 4525.0 Interpretation and Conclusions 4526.0 Recommendations 4927.0 References 52 Vendome Properties 4 Broad Oak Associates
  5. 5. Figure PageFig. 1 General Location of San Javier Project 9Fig. 2 General Location in Guerrero State 10Fig. 3 Topography Map Showing 3 Concessions 11Fig. 4 San Javier typical topography Mixtecapa River 13Fig. 5 Map Showing Location of San Javier and other mineral deposits 14Fig. 6 Regional Geology 17Fig. 7 Possible Felsic Crystal Tuff 18Fig. 8 Maguey Granite 18Fig. 9 Satellite Imagery Regional Interpretations 21Fig.10 Satellite Imagery Interpreted Alteration Zones 22Fig.11 Property Geology from Satellite Imagery 23Fig.12 Silver in Soils 25Fig.13 Arsenic in Soils 26Fig.14 Copper in Soils 27Fig.15 Lead in Soils 28Fig.16 Zinc in Soils 29Fig.17 Silver in Chip Samples 31Fig.18 Arsenic in Chip Samples 32Fig.19 Lead in Chip Samples 33Fig.20 Stream Sediment Sample Sites 34Fig.21 Sample Locations July 2010 39Fig.22 Grab Sample Locations December 2011 40Fig.23 San Javier, La Diana and Fiscal 2012 Properties 43Fig.24 Satellite Imagery Interpretation Map 44Fig.25 Vein Locations San Javier Property 47Fig.26 Vein Locations North Portion San Javier Property 48Fig.27 Vein Locations South Portion San Javier Property 48Consent of Author 53Vendome Properties 5 Broad Oak Associates
  6. 6. 1.0 Summary Vendome Resources Corp. (“Vendome” or “Company”) is a Toronto, Canada based public mineral exploration company. On December 1, 2011 Vendome announced that its wholly- owned Mexican subsidiary (Vendome Minas, S.A. de C.V.) had entered into an agreement to acquire from Camsim Minas S.A. de C.V. (“Camsim”) an earn-in option for a 50% undivided interest in and to the San Javier Mine property, located within the municipality of Malinaltepec, State of Guerrero, Mexico. Vendome paid CDN $75,000 cash and issued 1,000,000 common shares to Camsim upon signing of the earn-in option agreement. Vendome has also agreed to issue 1,000,000 common shares to Camsim on each of the first and second anniversaries of the effective date of the agreement, and make a final cash payment of CDN $250,000 to Camsim on the third anniversary date. Vendome entered into an agreement via its wholly-owned Mexican subsidiary (Vendome Minas, S.A. de C.V.) to acquire from Camsim Minas S.A. de C.V. (“Camsim”) an earn-in option for a 50% undivided interest in and to the La Diana property, located within the municipality of Malinaltepec, State of Guerrero, Mexico on September 2, 2010, which was amended on February 23, 2012. The amended date became the anniversary date for the following payments. Vendome paid CDN $75,000 cash and issued 1,000,000 common shares to Camsim upon signing of the earn-in option agreement. Vendome has also agreed to issue 1,800,000 common shares to Camsim on the first anniversary and 1,000,000 shares on the second anniversary of the effective date of the amended agreement, and make a final cash payment of CDN $250,000 to Camsim on the third anniversary date. Vendome agreed to a work commitment of $2,600,000 over the three year period. The San Miquel property was acquired (100% of the mineral rights) from Santa Claws Minas, S.A. DE C.V. for $25,000 and 2,500,000 Vendome shares on August 3, 2011. The San Javier, La Diana,and San Miquel polymetallic projects are located 135 kilometres southeast of the city of Hermosillo, State of Guerrero, in northwestern Mexico. The San Javier project is contained in a single concession of 253 hectares. This is the only project on which exploration apart from satellite imagery has been carried out. ACA Howe International Limited (“ACA Howe”) has visited the property and was responsible for running Vendome’s exploration program. In the spring of 2012, Howe conducted and managed an early stage exploration program on the San Javier property on behalf of Vendome. The detailed results of this program are given in section 9 of this report. Two drill targets were identified during this program and will drilled during phase 1. The present satellite imagery suggests the potential for similar targets on the other properties. Vendome has nearly 17,000 hectares between the three properties. Broad Oak recommends a two phase exploration program on this large property position, and the details are given in section 26 of this report. Phase one is budgeted at US$3,210,800, and phase two which is contingent on the results of phase one is budgeted at US$3,124,550. These programs should be completed in the next 12-24 months. Vendome Properties 6 Broad Oak Associates
  7. 7. 2.0 Introduction Broad Oak Associates (“Broad Oak”) was engaged by Vendome Resources Corp. to provide an independent technical report. This report was prepared under the direction of Geoffrey S. Carter, P. Eng., a principal of Broad Oak and a Qualified Person. A site visit was made to the property on July 6 and 7, 2010 and again on December 5 and 6, 2011 when grab samples were taken. The extensive database that Vendome has assembled in their offices in Toronto, Canada has been made fully available to Broad Oak. The exploration conducted on the properties was carried out by ACA Howe for Vendome in 2012.3.0 Reliance on Other Experts Broad Oak relied upon Vendome personnel and consultants and their corporate counsel for information regarding the current status of legal title of the property, property agreements, corporate structure, permits and any outstanding environmental orders. Vendome Properties 7 Broad Oak Associates
  8. 8. 4.0 Property Description and Location The Projects are located approximately135 kilometres east-northeast from the city of Acapulco, and approximately 4 kilometres east of the village of Barranca Panal, in the south east part of the State of Guerrero, southern Mexico. The property is approximately 6 hours from Acapulco by road via Marquela. Access to the San Javier property is possible by 4 wheel drive vehicle in good weather, but difficult in the rainy season. Access to La Diana and San Miquel is very limited as there are few roads. As of April 28, 2005 the historical distinction between exploration and exploitation concessions was replaced by the establishment of mining concessions, which confers upon its holders the rights to exploration, exploitation and extraction of substances. The Project consists of three Mining Concessions which covers 16,865 hectares. The duration of the concessions is 50 years from the date of request with the potential to renew for a further 50 years. Rental fees must be paid twice a year (end of January and end of July). Effective from January 1, 2012 fees required during the first and second years in Mexican Pesos are $8.05 per hectare; for the third and fourth years a payment of $7.60 per hectare; during the fifth and sixth year payment of $15.72 per hectare; during the seventh and eighth years payment of $31.62; in the ninth and tenth years payment of $63.22 per hectare and from the eleventh year payment of $111.27. Payment for the San Javier project concession in the year 7 (2012) is $7,999.86 Mexican Pesos. Further payments are required for the La Diana and San Miquel concessions. Table 1. San Javier, La Diana, and San Miquel Mining Concessions Concession Certificate Owner Area Staking Date Expiration Name Number (Hectares) Date San Javier 181899 Cansim Minas, S.A. DE 253 July 6/2005 July 6/2055 C.V La Diana 234454 Cansim Minas, S.A. DE 14,722 June 30/2009 June 29/2058 C.V San Miquel 237866 Santa Claws Minas, S.A. 1,890 May 17/2011 May 16/2061 DE C.V. Note documentation is being processed to transfer San Miquel into Vendome Minas, S.A. de C.V., the wholly owned Mexican subsidiary of Vendome. Vendome Properties 8 Broad Oak Associates
  9. 9. Fig. 1, General Location of San Javier ProjectVendome Properties 9 Broad Oak Associates
  10. 10. Fig. 2, General Location of San Javier Project in Guerrero StateVendome Properties 10 Broad Oak Associates
  11. 11. Fig. 3, Topography Map showing the three concessionsVendome Properties 11 Broad Oak Associates
  12. 12. 5.0 Accessibility, Climate, Local Resources, Infrastructure and Physiography From the city of Acapulco the project area is reached in approximately 6 hours if road conditions are good (O’Dowd, 2009). From Acapulco one drives east on road MEX200 to the town of Marquela (2 hours). From Marquela one drives north to Barranca del Panal, the last settlement before the project which is located 4 kilometres to the east. From Marquela to the project requires approximately 4 hours of a very sinuous and, and in some parts, damaged road. The last portion of the road leading to the project area is in very bad condition and a four wheel drive vehicle is recommended if the road is not upgraded. Access might be a real challenge during the rainy season (August to October). The State government is in the process of improving the road going from Xochiatenco up to the village of Barranca del Panal. Climate in the project area is temperate. Highs reach 35º C during the day while midnight lows reach approximately 10º C. The area is heavily forested, mostly by pines. Lumber companies are known to have been active in the area in the past. Roads in the area derive from that activity. None is currently active At the project, there is no electricity, telephone line or running water. Cellular phone service is not available at this time on the property. The mine camp is represented by a few wooden shacks which require a lot of work to make liveable. An old power line used to connect Barranca del Panal to the mine site. A request has already been filed to re-establish this connection to the federal electricity system. This process has not been initiated as of the date of this report. A small river separates the campsite from most of the veins. A bridge will eventually have to be built if heavy equipment has to be taken to the east side. An alternate road access could also be evaluated and developed. Satellite communication equipment was used but the rugged terrain made its use workable but unreliable. Relief is very rugged. The base of the valley stands at approximately 1,400 metres ASL while ridges reach 2,000 metres. The rugged terrain makes it very difficult to develop and maintain the local infrastructure which is minimal at this point. Vendome Properties 12 Broad Oak Associates
  13. 13. Fig. 4, San Javier Typical Topography, Mixtecapa River Looking Southwest6.0 History The State of Guerrero contains numerous precious metal deposits and mines. Within the State of Guerrero, Goldcorp operates the Los Filos mines (60 MT, 0.991g/t Au), located in the Nukay district, some 150 kilometres northwest of the project and Farallon Resources just started production on the G-9 deposit (2.18 Mt, 3 g/t Au, 209 g/t Ag, 1.48% Cu, 1.32% Pb and 11% Zn) located in the Campo Morado district some 210 kilometres to the northwest of the project as well (these numbers are as of 2009). Vendome Properties 13 Broad Oak Associates
  14. 14. Fig. 5, Map showing location of San Javier and other mineral deposits in Guerrero StateIn the late 80’s and early 90’s, the family decided to develop some the known veins of theproperty. A small 30 tpd flotation mill was constructed on the east side of the Mixtecapa River,across and slightly upriver from the old campsite. The heavy material was then transportedthrough the river. According to Cesar Toledo who lived on site for 8 months at the time, the milloperated at a rate of 25 tpd for at least 8 months. He estimates that at least 6,000 tonnes wereprocessed. This number could not be confirmed by members of the Larequi family at the time ofthe field visits. It is clear that there are no good records of the historical production at the mineand of the tonnage processed at the plant. Limited production from Veta Ancha (surface trench)and Veta Cristo Rey (from a 80 metre long adit) were processed at the plant (possibly 6,000 to7,000 tonnes, pers. Comm., Cesar Toledo) while material from Veta del Tajo (small pit near thecampsite and on the same side of the river as the campsite) was apparently hand-picked andshipped directly to smelters in Mexico (250 tonnes, pers. Comm., Felix Larequi). According tothe Larequi’s, vein material was extracted from 7 different veins or portions of veins over theVendome Properties 14 Broad Oak Associates
  15. 15. years. Broad Oak cannot verify these production figures at this time. The historical estimate isnot being treated as a current estimate and the historical estimates should not be relied upon as acurrent estimate.Two holes were drilled by the Mexican government (Larequi, personal communication, 2012)while the mine was operating. The results of that core drilling were apparently never given tothe owners. Geologist Cesar Toledo mentioned that he saw the core and confirms the presenceof mineralized structures. They were drilled down dip of Veta del Tajo and Veta Mixteco wherea stockwork zone is observed in the river. There is no known geology map of the property. Sr.Cesar Toledo confirmed that he was the only ``geologist`` on site for the Larequi’s (8 months)and that he was in charge of feeding the mill exclusively. All activities apparently ceased in1993 because of low metal prices. The property has been idle from that time until 2009. Toledostill acts as an experienced prospector and has a lot of knowledge of the local geology.However, he does not have a P.Geo. designation and his formal training as a geologist isunknown by ACA Howe or Broad Oak. He is not an independent Qualified Person inaccordance with Canadian securities commissions’ National Instrument 43-101 and as defined inthe CIM Standards on Mineral Resources and Reserves. In any event his work on the San Javierproperty was carried out approximately 20 years prior to the implementation of NationalInstrument 43-101 and therefore he is not familiar with the instrument or the CIM Standards.In 2009, limited prospecting and sampling was performed, initially by Camsim, and then by FirstGold during the Company’s due diligence process. O’Dowd (2009) collected 12 samples from atleast 8 different veins. Two of the veins ended up being located outside of the San Javierconcession. Two of the samples were damaged during the shipment to the laboratory and wereeliminated because of possible contamination. Mr. O`Dowd is an independent Qualified Personin accordance with Canadian securities commissions’ National Instrument 43-101 and as definedin the CIM Standards on Mineral Resources and Reserves. No further work was carried out byFirst Gold and the property was not acquired by that Company.Assay Results from 2009 Due Diligence SamplingVendome Properties 15 Broad Oak Associates
  16. 16. 7.0 Geological Setting and Mineralization Regional geology is shown in Figure 6 (O’Dowd, 2009) and is a compilation of Mexican government 1:250,000 scale geology maps E14-8-Chilpancingo (Consejo de Recurso Minerales, 1998) and E14-11-Acapulco (Consejo de Recurso Minerales, 1994). The project is found within the southern portion of the precious metal belt of Mexico. Little is known about the geology of the region. The area is part of the Mixteca Terrane. This structural province is considered to be a pre-Mesozoic regionally metamorphosed nucleus of plutonic, volcanic and sedimentary lithologies. The exposure of this basement reflects the uplift of the southern continental margin of a cratonic nucleus. The presence of minor tin and tungsten on the property may be a reflection of this metamorphosed continental basement. North-south shortening structures originated during Laramide orogenesis that ended during Paleocene age. These may be reflected in the project area as N-S and NE-SW property scale faults and lineaments. The terraine also contains a relatively thin Cretaceous cover (Moran-Zenteno et al., 2007) of sediments (O’Dowd, 2009), as well as volcanic and sedimentary rocks of Tertiary age and granitic intrusions of unknown age. To date there is no detailed map of the San Javier project area. The 1:250,000 scale mapping of the area covering the property suggests that is entirely underlain by intrusions of granitic composition. The April 2012 fieldwork recognized two distinct rock units. To the south-west of the Mixtecapa River is a highly weathered (kaolinized?) rock that has been considered previously to be granite, and has been referred to in earlier reports as the Boracho Granite. Examination of this unit by ACA Howe suggests that it may in fact be a rhyolite/dacite tuff, with a minor flow component. To the north-east of the river is a much less weathered, much more competent unit than its neighbour across the river to the southwest. It is more easily recognizable as a granitic unit and is referred to in historical reports as the Maguey Granite. The most recognized mineralized structures and the focus of mining and exploration to date extend eastward from the Mixtecapa River into the Maguey Granite, and are best exposed on Cerro Maguey. To date minor mineralization has also been observed southwest of the river in the highly clay-altered (possibly) volcanic unit on Cerro Boracho. Past production at San Javier comes from the Maguey Granite veins that extend from the river eastward a few hundreds of metres from the contact. However, a review of previous reports suggests that those structures extend several hundreds of metres further east. Typical alteration along the structures include clay alteration (proximal and distal) and sericitization (proximal only). In this region, all rock types but the Tertiary ones are mineralized, and it can be concluded that the epithermal system was active in the early-mid Tertiary. Typically in Mexico deep intrusive activity during the Eocene and early Oligocene epoch was followed during the cooling event by a collapse event and the emplacement of mineralized epithermal systems. In San Javier, it appears that mineralized structures develop in the more brittle of the two granites of the region. Vendome Properties 16 Broad Oak Associates
  17. 17. Fig. 6, Regional GeologyVendome Properties 17 Broad Oak Associates
  18. 18. Fig. 7, Possible felsic crystal tuff – formally Boracho GraniteFig. 8, Maguey GraniteVendome Properties 18 Broad Oak Associates
  19. 19. MINERALIZATION To date, approximately ten veins have been discovered east of the Mixtecapa River and only one lies west of the river. Seven of those have seen some small scale production. Because of the vegetation cover, the veins are poorly exposed along the slopes of the mountainous terrain forming the property. They are better exposed along creek beds. For this reason, it is quite difficult to establish their extent . The veins east of Mixtecapa River range from a minimum 50 centimetres to a maximum of 3-4 metres (e.g. Veta Ancha). They mostly strike in an E-W direction with a moderate dip to the south (approx. 45o ). However, diverging strikes and dips and cross cutting relationships were observed. Pinch and swell structures were also observed indicating that mineralized shoots are to be expected. Stockwork structures appear to be present in some areas. The two drill holes completed near Veta Mixteco seem to have targeted such an area. The area west of Mixtecapa River contains an approximate 85 metre vertical section of such coarse (1.8 metres) vein to fine (2 centimetres) mineralized stockwork. It is probable that systematic mapping and stripping will uncover more mineralization of both types on the project.8.0 Deposit Types The polymetallic mineralization at San Javier (galena, arsenopyrite, pyrite, acanthite, sphalerite, chalcopyrite) is related to epithermal activity during the Tertiary era. This type of mineralization is found all along the metallogenic belt of Mexico (Sierra Madre, 2,000 km). It hosts some of the most famous silver districts in the world (Fresnillo, Guanajuato and others). Typically, the mineralization can be found in extensive vein systems, in stockwork, in pipes or even disseminated (Camprubi and Albinson, 2006). All rock types can host the mineralization but more ductile units are often favoured. Grades are extremely variable. Disseminated deposits can be very low grade (Peñasquito, 0.5 g/t Au) while bonanza grades are often observed in veins and pipes (Fresnillo, + 1000 g/t Ag). Their metallogeny is also quite variable. Some are typically precious metal rich (Au>Ag or Ag>Au) while others are richer in base metals.9.0 Exploration Vendome’s 2012 (spring) exploration program was conducted and managed by ACA Howe International Ltd. ACA Howe’s exploration activities involved satellite imagery analysis and interpretation, an extensive rock and soil sampling program on the San Javier Property, with focus on the western side of the concession as the Company is in the process of finalizing a surface access agreement with the local community. The satellite imagery (Quickbird) work was carried out to outline property scale structures and to separate by spectral color and intensity changes areas of strong clay and oxide alteration that could be related to hydrothermal activity. It was also used to attempt to recognize changes in lithology. The geochemical program primarily focused on soil, channel, grab and stream sediment sampling, plus limited prospecting. Vendome Properties 19 Broad Oak Associates
  20. 20. In addition, grab samples were taken from veins on both the east and west side of the river inareas that were previously explored in order to confirm assay values reported from previousstudies. Two water samples from Mixtecapa River were also taken.SATELLITE (QUICKBIRD) IMAGERYThe regional view provided by the Quickbird image (Figure 9, A.C.A. Howe, 2012) showsseveral linear structures that are interpreted as regional fault systems. These are probably deep-penetrating and would allow the lateral and upward movement of hydrothermal mineralizingfluids. Dark green patches represent basement complex rocks. These appear as “windows”through the more mottled buff/medium green coloured terrain which may be volcanic, mainlytuffaceous cover. Cross-hatched areas are steep slopes to the opposite more gentle NE and E dipslopes to those volcanics.Figure 10 shows the results of spectral imagery analysis. In this case this analysis was used toshow the presence of kaolinite (green and blue) and the presence of alunite (yellow and red).Alunite is generally considered to represent the alteration of plagioclase feldspar of volcanicrocks while kaolinite is the more general alteration product of feldspar. A narrow wedge-shapedalunite alteration zone is found N and NNW of the San Javier property, and as small patches atTajo, Ancha and several other sites surrounding the project. The linear nature of the main zonesuggests it is related to a major NNE-SSW regional structure. Interpretation has also outlined aNNE trending zone of enhanced silicification and (Fe) oxidation. Note that thisalunite/silicification/Fe oxidation covers the NW quarter of the property.In the immediate area of the San Javier property (Figure 11) there is a color change that reflectsthe compositional and textural difference between the two main host rocks described underRegional Geology. As shown on the figure this includes the Maguey Granite as a dark greenishpatch surrounded by a mottled buff and lighter green region covering the majority of the groundin and around the project. This represents a felsic volcanic tuff. Several other dark greenpatches occur outside the project. All may represent windows through younger units to themetamorphic basement. Note the steep vs. gentle slopes of hills. The steepness may be due toslumping of the tuffs or their sedimentary equivalents while the shallow slope may represent anapproximate paleosurface and dipslope.Vendome Properties 20 Broad Oak Associates
  21. 21. Fig. 9, Satellite Imagery Regional InterpretationVendome Properties 21 Broad Oak Associates
  22. 22. Fig. 10, Satellite Imagery, Interpretated Alteration ZonesVendome Properties 22 Broad Oak Associates
  23. 23. Fig. 11, Property Geology from Satellite ImageryVendome Properties 23 Broad Oak Associates
  24. 24. SOIL SAMPLINGSoil grids were established and figures 12-16 show the results. The upper part of the gridshowed only weakly scattered (maximum 7 g/t) silver values. Arsenic showed high values overthe south half of the grid (maximum 5,850 ppm) while lead shows a similar anomaly (maximum5,220 ppm) in the south half, but it provides a NNE trend, suggesting a dip (vein is going deeper)in this direction. A similar, though weaker, response was seen in zinc with a maximum of 200ppm. Strike/dip measurements of veins in the roadcuts show a similar NE dip direction. Highestelevation here is 1,382 metres above sea level.The lower part of the grid is set out on the east-facing slope between the Upper and Lower Tajoaccess roads. Assay results suggest two weak anomalies in silver values, with a maximum of16.1 ppm. Arsenic anomalies are focused in the south half of the grid and produce a broad NNEtrend. The maximum value was 8,130 ppm. Lead showed a similar broad anomaly in the southgrid area, giving a maximum value of 9,180 ppm. A single sample in the NW (3130 ppm),coupled with a weaker aresenic anomaly from the same sample, suggests a second small parallelNNE trend. Zinc values emphasize both trends and suggest a third parallel trend. These allindicate the probability of three separate veins coming to surface along these NNE trends. Abroad west side and less extensive east side may indicate a shallow to moderate west dip to theveins. Note that although the road at the south end has been disturbed material has probably notbeen moved more than a few meters.Vendome Properties 24 Broad Oak Associates
  25. 25. Fig. 12, Silver in SoilsVendome Properties 25 Broad Oak Associates
  26. 26. Fig. 13, Arsenic in SoilsVendome Properties 26 Broad Oak Associates
  27. 27. Fig. 14, Copper in SoilsVendome Properties 27 Broad Oak Associates
  28. 28. Fig. 15, Lead in SoilsVendome Properties 28 Broad Oak Associates
  29. 29. Fig. 16, Zinc in SoilsVendome Properties 29 Broad Oak Associates
  30. 30. ROAD CHIP CHANNEL SAMPLINGThree hundred and sixty-six channel samples were obtained along the Upper and Lower Tajoroads between April 4 and April 16, 2012 (Figures 17-19). Vertical channel samples werecollected from the outcrops along the road and horizontal channel samples crossed over the road.In general, the rock is so highly altered in this area that the use of a rock saw was not necessaryfor sample collection. Vertical channel samples were spaced 5 metres apart and gathered overcontinuous 1-metre intervals, as high as reach allowed (typically 1-3 metres). The horizontalchannels also had 5 metre spacings and were sampled continuously, but comprised of 2 metresample intervals. Not all horizontal channel samples were in situ, particularly along Lower TajoRoad; however, the material appeared local and very near to source and should therefore have noeffect on geochemical results. This extensively sampled area links with both soil grids, creatingone large continuous sample zone immediately west of the river above Veta Tajo. The sampleswere sent to SGS Laboratory in Durango for fire assay and ICP analysis.Sampling focussed on the Veta Tajo area located 300 metres southwest of the historical SanJavier mine workings. It is believed the Veta Tajo is a previously unrecognized, unexplored andunexploited area of significant visible stockwork quartz veining that spans an 80 to 100 metrevertical rise in the west bank of the river valley that transects the central property area.Quartz veining in the Veta Tajo is stacked, horizontal to shallow-dipping and consists of:a set of 0.8-1 metre thick veins dipping 40-60° to the easta second set of 25-40 centimetre thick veins dipping 25-35°a third set of 2-5 centimetre thick veins dipping 0 to 15ºSelect weighted averages for silver concentration over continuous chip sample lengths in theVeta Tajo are as follows: (channel lengths are not true widths) Vein Silver Channel Sample No. Easting* Northing* Orientation (g/tonne) Length (m) KGC023-025 vertical 222 3 540804.4 1894954 KGC053 vertical 616 1 540831.1 1894940 KGC091-99 horizontal 239.5 18 540784.4 1894966 KGC0314-322 horizontal 471.6 16 540817.5 1894925 * - approximate center of chip channel using UTM WGS8, Zone 14QVeining appears to be associated with east-west structures cross-cutting a host rock previouslyidentified as "old granite", which ACA Howe has re-interpreted as strongly silicified felsicvolcaniclastics. ACA Howes field work also indicates that veining extends into areas north andsouth of Veta Tajo. Vendome management is extremely encouraged by these chip results in thatthe potential for bulk silver mineralization in wall rock, in addition to high grade narrow veinmineralization has been confirmed.Vendome Properties 30 Broad Oak Associates
  31. 31. Fig. 17, Silver in Chip SamplesVendome Properties 31 Broad Oak Associates
  32. 32. Fig. 18, Arsenic in Chip SamplesVendome Properties 32 Broad Oak Associates
  33. 33. Fig. 19, Lead in Chip SamplesVendome Properties 33 Broad Oak Associates
  34. 34. STREAM SEDIMENT SAMPLINGOn April 16, 2012 a total of 14 stream sediment samples were collected by Howe personnelalong the Mixtecapa River (Figure 20). Sampling began at the Veta Ancha mill area andfollowed the Mixtecapa River to the north boundary of the San Javier concession. Streamsediments were collected approximately every 50 metres along the western side of the river.There was limited outcrop bordering the river along this 500 metre stretch; small to very largeboulders occupied the river instead. The fourteenth sample, KGS-14, was taken from a nearlydried up tributary by Veta Ancha approximately 40 metres inward from the Mixtecapa River.The sediment consisted of coarse sand here, as opposed to the fine silt and clay sediment insamples KGS-01 to KGS-13. These samples were sent to SGS Laboratory for ICP analysis.None of the samples along the Mixtecapa River showed anomalous values. The sample takenfrom the dried tributary near Veta Ancha (KGS-14) showed 6 ppm Ag, 180 ppm As, 430 ppm Pband 518 ppm Zn, well above any of the other sample results. It is unknown at this time whetherthis is the result of sampling of mill tailings or if it is related to the Veta Ancha itself.Fig. 20, Stream Sediment Sample SitesSELECT ROCK SAMPLINGBetween April 2 and April 17, 2012 limited prospecting was done around the property, focusingon the western side of the Mixtecapa River. Grab samples (KG-001 to KG-034 and DB-01 toVendome Properties 34 Broad Oak Associates
  35. 35. DB-12) were collected from various veins and mineralized or highly altered host rock. Sampleswere also taken from one of the old adits located upstream from Veta Tajo (KG-022 to KG-024)and from the ore pile (KG-028 to KG-031).Results of April 2012 Select Rock Sampling (UTMs are in WGS84 Zone 14Q format) Sample UTM E UTM N Ag As Pb Zn m m ppm ppm ppm ppm KG-01 540522 1893981 1818 49200 4000 811 KG-02 540520 1893978 135 28200 4470 3965 KG-03 540499 1893896 72 20900 >10000 4894 KG-04 540797 1894954 304 20800 >10000 113 KG-05 541269 1895435 32 170 2090 882 KG-06 541151 1895442 325 1900 3450 2626 KG-07 541139 1895063 17 970 1950 585 KG-08 541008 1894911 18 1340 970 1205 KG-09 540862 1894870 559 27600 >10000 >10000 KG-10 540739 1895027 11 130 80 70 KG-11 540777 1894969 574 18300 7840 206 KG-12 540785 1894959 115 9370 5160 193 KG-13 540775 1894957 4352 29300 >10000 361 KG-14 540777 1894948 2907 32300 >10000 488 KG-15 540790 1894933 792 18800 5770 146 KG-16 540789 1894985 1063 24600 3880 171 KG-17 540791 1894975 1373 22600 9230 85 KG-18 540797 1894961 573 7110 6100 507 KG-19 540799 1894951 572 12400 8660 129 KG-20 Standard 6 440 440 >10000 KG-21 540802 1894935 548 13100 6420 229 KG-22 540866 1894879 <2 100 30 30 KG-23 540866 1894879 3 130 40 42 KG-24 540866 1894879 101 28100 7320 3805 KG-25 540880 1894927 59.1 70 220 103 KG-26 540880 1894927 73.4 49500 6570 171 KG-27 540880 1894927 113 37100 8760 278 KG-28 540768 1894841 263 48300 8880 >10000 KG-29 540768 1894841 19.2 20300 2730 5856 KG-30 540768 1894841 35.7 20600 2840 3915 KG-31 540768 1894841 158 11100 3860 7511 KG-32 540418 1895249 <2 210 100 134 KG-33 540350 1895403 <2 80 20 22 KG-34 Blank <2 100 100 193Vendome Properties 35 Broad Oak Associates
  36. 36. April 2012 Select DB Rock Sampling (UTMs are in WGS84, Zone 14Q format) Sample UTM E UTM N Ag As Pb Zn m m ppm ppm ppm ppm DB-01 540872 1894917 2334 11500 9090 95 DB-02 540871 1894920 442 23600 6020 112 DB-03 540847 1894908 2572 13900 12300 112 DB-04 35 m Az 060 Same vein as DB-03 898 14700 4170 82 from DB-03 DB-05 540886 1895074 240 2310 2560 83 DB-06 540863 1894952 48.7 4370 2250 123 DB-07 4 m uproad from 235 13300 8430 97 540863 E/1894952 N DB-08 13 m uproad Same vein as DB-07 in 6672 25500 4580 77 from DB-07 Floor at base of roadcut DB-09 27 m uproad Same vein as DB-07 in 7212 32400 13200 384 from DB-08 Floor at base of roadcut DB-10 540871 1894961 1510 22600 4350 89 DB-11 540744 1894935 535 8760 2020 287 DB-12 540755 1894876 158 17200 6300 5910.0 Drilling It is reported by the owners of the property that Mexican government geologists drilled two holes within the project. The owners were not given a copy of the results and neither the Company, ACA Howe, or Broad Oak have to date found a copy of those results. No drilling has been carried out on these Properties by the current owners or joint venture partners.11.0 Sampling Method, Analyses and Security Sampling Methods and Approach Representative continuous chip samples and most selected grab samples were removed from the outcrop surface by chipping with a geological hammer. The focus of the sampling was mainly on altered rock and vein material. The chip samples collected from vertical outcrops were taken over 1 metre intervals and each channel was spaced 5 metres apart. Those samples collected over horizontal outcrops were taken over 2 metre intervals and also spaced 5 metres apart. All rock samples were placed in labelled plastic bags and/or cloth bags and sealed. Soil samples were collected using a trowel by first removing all vegetation and organic matter. The soil samples were placed in labelled kraft paper envelopes and sealed. The 63 samples from Soil Grid A were collected every 10 metres, along lines that were spaced 25 metres apart. Soil Grid B contains 127 samples that were collected every 10 metres, along lines spaced 10 metres apart. Vendome Properties 36 Broad Oak Associates
  37. 37. The stream sediment samples were collected approximately every 50 meters along MixtecapaRiver, but more specifically, in areas of reduced flow rates where settling of higher density(heavier) material was likely to occur. Samples were gathered using a trowel and then squeezedby hand to eliminate the water. They were placed in labelled kraft paper soil sample envelopesand left out in the sun to dry.GPS locations of the grids, stream sediment, water and select rock samples were recordedutilizing a handheld GPS receiver. The sample number, description, assay results and location(UTM coordinates) were then compiled in a Microsoft Excel spreadsheet.It is Broad Oak’s opinion that all of the sampling was carried out according to industry standardsand the samples are representative of mineralization at the Project.A total of 618 samples (including field duplicates, blanks and standards) of rock, soil, streamsediment and water were collected during the April 2012 exploration program. Of these, 366were rock chip samples, 46 were rock select (grab) samples, 190 were soil samples, 14 werestream sediment samples and 2 were water samples. All of these samples were sent to SGSLaboratory in Durango, Mexico for geochemical analyses.SGS Durango is an internationally recognized independent ISO-certified lab; it conforms to therequirements of the ISO/IEC 17025:2005 standard for the General Requirements for theCompetence of Testing and Calibration Laboratories. It is a Standards Council of CanadaAccredited Laboratory (No. 657) and conforms to requirements of CAN−P−1579 (MineralAnalysis) and CAN−P−4E. Its scope of accreditation includes fire assay with AtomicAbsorption Spectrometry (AAS) and gravimetric analysis for gold and silver; aqua regiadigestion, strong acid digestion and peroxide fusion by Inductively Coupled Plasma OpticalEmission Spectrometry (ICP-OES), and 3 acid digest for Silver by AAS and titration methodsfor concentrates.Methods used in the analysis of the San Javier samples included those described below. Based onhistorical results and budget allowed for assay costs no analysis was requested for AuSample SecurityAll chip and soil samples were collected by a 3-man sampling crew under the supervision ofKaren Grey, GIT, with regular review by Dr. Duncan Bain, P.Geo. A numbered sample tag wasplaced in each bag and the number was also written with waterproof marker on the outside. Eachbag was then closed with plastic zip ties. All samples were placed in plastic pails (15 to 20 perpail) with snap-lock lids. The sample batch was written on each pail. All samples were driven tothe lab by a temporary employee of Camsim. He had no list of the samples nor was he informedwhere individual samples were taken from. He was under the supervision of a ACA Howe QP.Sample PreparationMethod PRP85 was used to prepare rock, soil and stream sediment samples. Samples of <1.2 kgweight were dried, fine pulverised to a nominal 75μm using bowl-and-puck equipment. Nopreparation was carried out for the water samples.Vendome Properties 37 Broad Oak Associates
  38. 38. Analytical ProceduresICP-40B was used to analyse 40 major and minor elements, including major base metals andsilver. This method involved Induced Coupled Plasma Mass Spectrometry (ICP-MS). In plasmamass spectroscopy, the inductively coupled argon plasma (ICP) is used as an excitation sourcefor the elements of interest. The plasma in ICP-MS is used to generate ions that are thenintroduced to the mass spectrometer. These ions are then separated and collected according totheir mass to charge ratios. The constituents of an unknown sample can then be identified andmeasured. ICP-MS offers extremely high sensitivity to a wide range of elements. It is a multi-element analytical technique capable of determining an extremely wide range of elements to verylow detection limits (typically sub ppb). Any samples with Ag values greater than 10,000 ppm(10 g/T) were re-analyzed using method AAS-21B and/or FAG313. Any base metals with valuesgreater than 10,000 ppm (1.00%) were re-analyzed using method ICP90Q.AAS-21B is used to measure samples with greater than 10,000 ppm (10 g/T) Ag. It has ananalysis range from 0.3 g/t to 300 g/t. It uses a 2g sample that undergoes 3-acid Digest with anAtomic Absorption Finish (AA).ICP90Q is used to achieve suitable precision and accuracy for ore grade base metals with valuesgreater than 10,000 ppm (1.00%). This ore-grade analysis is typically performed using a sodiumperoxide fusion and ICP-AES (Atomic Absorption Spectroscopy) analyses.FAG313. This method is used to achieve high precision for Ag-rich rock samples withanticipated values greater than 5 g/t. It involves a fire assay and gravimetric finish. Fire assayinginvolves the mixture of sample and an appropriate flux that is then melted in a crucible. Uponcooling the “slag” is removed. Various chemicals are then added to separate the various metalsin the remaining bead. These are weighed individually to give an assay value. Gravimetricfinish is a method of weighing the specific bead with a highly sensitive balance to provide moreprecision to the resulting assay value.Vendome Properties 38 Broad Oak Associates
  39. 39. 12.0 Data Verification Fig. 21, Sample Locations July 6, 7 2010 Visit Broad Oak Samples taken on the 6 and 7 of July 2010 from the Vendome Sam Javier Polymetallic Project, State of Guerrero, Mexico. All the samples were taken as grab samples from the outcropping veins or dump site. Datum WGS 84 Vien on Road BOA 1 UTM Coordinates 14 Q E 540741 N 1894855 8,299 g/t silver 834 ppm copper 6250 ppm lead 615 ppm zinc San Javier Old Dump BOA 2 UTM Coordinates 14 Q E 540752 N 1895003 411 g/t silver 2,080 ppm copper >10,000 ppm lead >10,000 ppm zinc Sample 1 Adit BOA 3 UTM Coordinates 14 Q E 540492 N 1893878 15,042 g/t silver 6,220 ppm copper >2,270 ppm lead >10,000 ppm zinc Vendome Properties 39 Broad Oak Associates
  40. 40. Sample 2 Adit higher upBOA 4 UTM Coordinates 14 Q E 540539 N 1893831 109 g/t silver 558 ppm copper >10,000 ppm lead >2,310 ppm zincVeinlets in river bedBOA 5 UTM Coordinates 14 Q E 540539 N 1893862 204 g/t silver 1,600 ppm copper >10,000 ppm lead >2,340 ppm zincFig. 22, Grab Sample locations 5, 6 December 2011 VisitBroad Oak Samples taken on the 5 and 6 of December, 2011 from the Vendome San JavierPolymetallic Project, State of Guerrero, Mexico.All the samples were taken as grab samples from the outcropping veins.Datum WGS 84BOA 10 UTM Coordinates 14 Q E 540870 N 1895329 1,277 g/t silver 1,590 ppm copper 2.39% lead 2.51% zincBOA 11 UTM Coordinates 14 Q E 541071 N 1895459 242 g/t silver 122 ppm copper 1.77% leadVendome Properties 40 Broad Oak Associates
  41. 41. BOA 12 UTM Coordinates 14 Q E 541268 N 1895447 49.7 g/t silver 21 ppm copper BOA 13 UTM Coordinates 14 Q E 540667 N 1894934 1,384 g/t silver 176 ppm copper BOA 14 UTM Coordinates 14 Q E 541020 N 1894903 38.4 g/t silver 404 ppm copper BOA 15 UTM Coordinates 14 Q E 540643 N 1894513 105 g/t silver 281 ppm copper 1.69% lead BOA 16 UTM Coordinates 14 Q E 540664 N 1894550 657 g/t silver 8,500 ppm copper 7.32% lead 4.18% zinc BOA 17 UTM Coordinates 14 Q E 541300 N 1895362 54.1 g/t silver 236 ppm copper 1.4% lead These grab samples were assayed at SGS Durango. It is an internationally recognized independent ISO-certified lab; it conforms to the requirements of the ISO/IEC 17025:2005 standard for the General Requirements for the Competence of Testing and Calibration Laboratories. Broad Oak believes that these samples indicate that there is high grade mineralization on the property and that they confirm the exploration program results reported by ACA Howe.13.0 Mineral Processing and Metallurgical Testing In the early 1980’s, a 30-ton per day mill was set up on the property. The remains of this plant can still be viewed. There are no reliable production records available. To the authors’ knowledge, no records of metallurgical testing during that time exist, and no such work has been carried out since then.14.0 Mineral Resource Estimates There are no NI 43-101 compliant resources on this property.15.0 Mineral Reserve Estimates There are no NI 43-101 compliant reserves on this property. Vendome Properties 41 Broad Oak Associates
  42. 42. 16.0 Mining Methods Not Applicable.17.0 Recovery Methods Not Applicable.18.0 Project Infrastructure The project is in a remote area and access is difficult. Any assistance of a technical nature has to be brought into the area, and appropriate accommodations provided. There is ample labour in the surrounding villages and this is readily available as there is very little employment in the area.19.0 Market Studies and Contracts Not Applicable.20.0 Environmental Studies, Permitting and Social or Community Impact The only possible environmental issue relates to the small historic mill site. There is a small tailings impoundment that may need to be remedied, but at present there are no requirements for this to be done. Water testing did not indicate at the time of testing that these tailings are leaching any deleterious material.21.0 Capital and Operating Costs Not Applicable.22.0 Economic Analysis Not Applicable. Vendome Properties 42 Broad Oak Associates
  43. 43. 23.0 Adjacent Properties Fig. 23, The San Javier, La Diana, and San Miquel Properties Vendome owns most of the adjoining properties and apart from the following interpretation of satellite imagery there has been no exploration carried out on these properties. This map was compiled by Howe. Vendome Properties 43 Broad Oak Associates
  44. 44. Fig. 24, Satellite Image Interpretation MapVendome Properties 44 Broad Oak Associates
  45. 45. 24.0 Other Relevant Data and Information There is no other relevant data and information.25.0 Interpretation and Conclusions The April 2012 Phase 1 exploration program carried out for Vendome by ACA Howe confirmed the presence of highly anomalous assay values in silver (up to several thousand g/t in select samples), arsenic, lead and to a lesser extent Zinc, as had been described in historical reports on the San Javier project. Most of these reports had focused on the mineralized veins east of Mixtecapa River. Because of local community concerns about mineral exploration east of the river, only a single day of the April 2012 program was spent examining these veins and taking select samples to confirm assay values described previously. That visit indicated that there are several sub-parallel generally east-striking and south dipping mineralized veins. Subject to more detailed examination, these veins appear to be hosted by a relatively fresh-looking unit referred to as the Maguey Granite (in older literature referred to as the Young Granite). Regional geology refers to the area as being underlain by Mixteca Terrain, a mix of pre-Mesozoic plutonic, volcanic and sedimentary rocks regionally metamorphosed by the Laramide (and older?) orogeny. However, the relatively unaltered textures and composition of this granite and younger mafic dykes intruding it suggest it is more likely post-Laramide (post-Cretaceous) in age. Veining in that area would then also be younger than that intrusion. The quartz vein-host rock, with no carbonate, plus the silver-arsenic-lead but low zinc and even lesser copper indicates that current position is at moderate depth in an epithermal system. High arsenic shows that hydrothermal fluids have leached a thick section of crustal material (the Mixteca Terrane). This mineralized system is related to regional scale structures that penetrate that terrane to great depth. It is probable that additional veins are present in proximity to other regional structures on and around the San Javier property. Because of local political issues most of the recently completed work concentrated on known mineralization from the Tajo Vein westward to the western property boundary. Here the host rock was a moderately to strongly clay-altered buff- to light brown to orange-pink host rock that, although previously considered to be a granitic rock, is considered by Dr. Bain (Howe) to be a lithic and crystal tuff of rhyolite to dacite (felsic) composition. This unit is thought to be post- Maguey Granite in age. However the mineralizing event is probably the same on both sides of the river. Sulphide and silver minerals are the same, as are the ranges in assay values. Gangue mineral in the veins and stockwork are both quartz with no carbonate. In the west this mineralization is recognized in a much more stockwork type pattern compared to the east where individual thicker veins with much less stockwork are more prevalent. Zones of silicification are more easily recognized in the west. It is suggested that the Maguey Granite was injected through the Mixteca Terrane after the Laramide Orogeny, so as late as Tertiary time. That surface was eroded down to expose the granite. Following this felsic volcanism, including ash clouds, ashflows and minor rhyolite flows occurred in the region. A glassy brittle horizon may have been present at the base. The porous and permeable nature of the tuff would easily allow the movement of hydrothermal fluids Vendome Properties 45 Broad Oak Associates
  46. 46. along its base, especially against an impermeable surface such as the Maguey Granite. Thatbasal zone had “crackled”, either from a possible glassy base or because there was an initialphase of hydrothermal fluid movement that precipitated only silica. That “crackling” creatednumerous small-scale (2 centimetre to 1.8 metre) flat to low-angle stockwork veinlets and raresmall veins. West of the river mineralization can be projected to at least the elevation ofMixtecapa River (1,308 metres) and as high as the surface of Soil Grid (1,382 metres), anelevation difference and therefore a known vertical mineralized zone of a minimum of 74 metresthick. Dip direction may be influenced by the original slope of the granite basement, allowingNE, W and NW dip to the stockwork and veins west of the river. Concurrent or a later phasefluid movement remobilized or carried into this stockwork the same metals (Ag-As-Pb-(Zn)-(Cu)) and sulphur as those seen in the Maguey Granite. The acidic nature of the fluid caused themoderate to strong clay alteration of the feldspars of the volcanic pile but much less in thefeldspars of the Maguey Granite. Veining and mineralization in the granite may reflect a greaterdepth in the hydrothermal system. This interpretation would require that volcanics also bedeposited east of the river at the same time as those to the west but have since been eroded,possibly because of uplift of the east side was along a NE fault along the river following themineralizing event. Insufficient sampling has been done on the east side to show if there isincrease in Cu values which would suggest that veining there is deeper in the hydrothermalsystem. Little analysis has been done for gold. An increase in one or both elements would be astrong indicator of increased depth in the system.Vendome Properties 46 Broad Oak Associates
  47. 47. The following figures show the vein locations on the San Javier property as identified to date.Fig. 25, Vein Locations San Javier PropertyVendome Properties 47 Broad Oak Associates
  48. 48. Fig. 26, Vein Locations North Portion of San Javier PropertyFig. 27, Vein Locations South Portion of San Javier PropertyVendome Properties 48 Broad Oak Associates
  49. 49. 26.0 Recommendations Geoffrey S. Carter, the Qualified Person preparing this Technical Report, believes that the character of Vendome Resources Corp. San Javier, La Diana and Fiscal 2012 Projects are of sufficient merit to justify the following exploration program over the next 12-24 months. It is recommended that a 2 Phase program be initiated on the Vendome Properties to provide more detail to the silver, gold and base metal potential of the property and the areas surrounding it. Budget estimates and work programs are outlined below. Phase 2 is contingent upon the results of Phase 1. Phase 1 The Phase 1 program should consist of detailed mapping of the known veins and their host rocks east of the Mixtecapa River, as well as a few days of mapping and prospecting in the northwest quarter of the property, to look for evidence of Tajo Zone veining, alteration and mineralization. An IP/Resistivity ground geophysical survey would not be effective on the flattish veining west of the river. However, it would be useful in trying to trace the continuity of more moderate and steeply dipping mineralized veins such as Veta Ancha east of the river. It would also be used to assist in the selection of drill targets on that side. Based on the Aster satellite imagery and apparent disposition of hydrothermal alteration and structure, La Diana and San Miquel concessions may host mineralization similar to that at San Javier and consequently with it the possibility of multiple prospects and occurrences across the properties. It is recommended that an airborne magnetic, EM and radiometric survey together with a regional stream sediment geochemistry survey be conducted across the properties in order to identify additional veining and mineralization. The Tajo Road area has been geochemically sampled in detail. An 85 metre deep stockwork and vein zone is present there. Both the Veta Ancha and Tajo road area represent immediate targets for diamond drill testing and it is recommended that the continuity, vertical density and variation in width of veining in the two areas drill tested as part of the Phase 1 work. Vendome Properties 49 Broad Oak Associates
  50. 50. Proposed Phase 1 Budget Item $USDMAPPING AND SAMPLINGMapping and Sampling 40,400REGIONAL STREAM SED GEOCHEMISTRYGeological Staff 29,200Assays 15,000Helicopter Support 150,000Purchase Camp 100,000Camp Operation and Transportation 50,400Reports 50,000GEOPHYSICSIP/Resistivity survey 50,000Airborne EM/magnetic/radiometric survey – San Javier/Diana 300,000Concessions – 100m spacings = total 3,000 line-kmDRILLINGDiamond Drilling 8,000 metres 1,600,000Geological Staff 147,000Assays and sample preparation 260,000 SUB TOTAL 2,792,000Contingencies 15% 418,800 TOTAL PHASE 1 PROGRAM 3,210,800Vendome Properties 50 Broad Oak Associates
  51. 51. Phase 2Assuming the results from phase 1 support a second phase, phase 2 would continue work on thelarge land position and drill any further targets identified in phase 1.Proposed Phase 2 Budget Item $USDREGIONAL FOLLOW UP MAPPING, STREAMSEDIMENT, SOIL GEOCHEMISTRYGeological Staff 59,600Assays 60,000Helicopter 112,500DRILLINGDiamond drilling, 10,000 metres 2,000,000Geological Staff 148,500Assays 260,000Camp Operation and Transportation 41,400Reports 35,000 SUB TOTAL 2,717.000Contingencies at 15% 407,550 TOTAL PHASE 2 PROGRAM 3,124,550The total of phase 1 and phase 2 is US$6,335,350Vendome Properties 51 Broad Oak Associates
  52. 52. 27.0 References Report on the exploration on the San Javier Silver Project, Barranca Panal Area, Central Guerrero State, Southwestern Mexico. Vendome Resources Corp.. A.C.A. Howe International Limited, Toronto, Ontario, Canada. Dr. Duncan Bain, P. Geo., Felix Lee, P. Geo., Karen Grey, B. Sc., G.I.T., June/July 2012. Satellite Image Interpretation of the San Javier and Diana Properties, the State of Guerrero, Mexico, for Vendome Resources Corp., April 2012 Consejo De Recursos Minerales, 1998, Carta Geologico-Minera Chilpancingo, E14-8, Guerrero, Oaxaca and Puebla Consejo De Recursos Minerales, 1998, Carta Geologico-Minera Acapulco, E14-11, Guerrero, Oaxaca and Puebla Moran-Zentano et al., 2007 O`Dowd, 2009 Vendome Properties 52 Broad Oak Associates
  53. 53. CONSENT OF AUTHORTo: securities commissions and exchanges where filedI, Geoffrey S. Carter, do hereby consent to the filing of the written disclosure of the TechnicalReport titled Polymetallic Resources on the San Javier, La Diana, and Fiscal 2012 Properties anddated October 17, 2012 (the Technical Report) related these projects and any extracts from or asummary of the Technical Report in the material change report of Vendome Resources Corp. andto the filing of the Technical Report with the securities regulatory authorities referred to above.I also certify that I have read the written disclosure being filed and that it fairly and accuratelyrepresents the information in the Technical Report that supports the disclosure of VendomeResources Corp..Dated the 17th Day of October, 2012 Seal or Stamp Geoffrey S. CarterPrinted name of Geoffrey S. Carter, P. EngCopyright of Broad Oak Associates (A Division of 930531 Ontario Limited), Head Office: 365 Bay Street, Suite 304, Toronto, Ontario, Canada,M5H 2V1Vendome Properties 53 Broad Oak Associates