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The King-King Copper-Gold Project is held in a Mineral Production Sharing Agreement (MPSA#009-92-XI, approved by the government May 27, 1992 and amended December 11, 2002) by The Philippine Government, NADECOR (Nationwide Development Corporation), and Benguet Corporation.
The MPSA grants the parties to the MPSA the exclusive right to explore, develop and exploit minerals within the area comprising the King-King deposit.
The deposit size depicted in Figure 1-1 below is 2.5 square kilometers and the area of the Mineral Property in the MPSA is 15.5 square kilometers (see Figure 4-2). There is a memorandum of understanding (MOU) between NADECOR and St. Augustine Mines Ltd., a subsidiary of Russell Mining and Minerals, Inc. (RMMI), that provides for formation of a Joint Venture (JV) once Benguet Corporation is eliminated from the MPSA.
Under the MOU, RMMI retains the exclusive right to develop the project through itself or an associated entity. Ratel and RMMI have agreed to complete a Share Exchange Agreement wherein Ratel will gain 100 percent control of SAML and RMMI will be compensated in Ratel equity.


  1. 1. KING-KING COPPER-GOLD PROJECT MINDANAO, PHILIPPINES TECHNICAL REPORTPURSUANT TO NATIONAL INSTRUMENT 43-101 OF THE CANADIAN SECURITIES ADMINISTRATORS Prepared For RATEL GOLD LIMITED andRUSSELL MINING AND MINERALS, INC. Prepared By INDEPENDENT MINING CONSULTANTS, INC. Michael G. Hester, FAusIMM Vice President and Principal Mining Engineer Independent Mining Consultants, Inc. Donald F. Earnest, P.G. President Resource Evaluation, Inc John G. Aronson President AATA International, Inc. October 12, 2010
  2. 2. King-king Copper-Gold Project iMindanao, PhilippinesOctober 2010 Table of Contents1.0 Summary . . . . . . . . . 1 1.1 General . . . . . . . . 1 1.2 Geology . . . . . . . . 2 1.3 Exploration 2 1.4 Mineral Resource . . . . . . . 3 1.5 Mineral Processing and Recovery to Saleable Product. . . 10 1.6 Environmental and Permitting . . . . . 11 1.7 Conclusions and Recommendations . . . . . 122.0 Introduction and Terms of Reference . . . . . . 143.0 Reliance on Other Experts. . . . . . . . 164.0 Property Description and Location . . . . . . 18 4.1 Property Location . . . . . . . 18 4.2 Land Area and Mining Claim Description . . . . 19 4.3 Agreements and Encumbrances . . . . . 23 4.4 Other Mineral and Mining Activities outside the Property Boundaries 24 4.5 Environmental Obligations . . . . . . 24 4.6 Permit Status . . . . . . . . 255.0 Accessibility, Climate, Local Resources, Infrastructure and Physiography . 28 5.1 Access . . . . . . . . . 28 5.2 Climate . . . . . . . . 28 5.3 Local Resources . . . . . . . 28 5.4 Infrastructure . . . . . . . . 29 5.5 Physiography . . . . . . . . 30 5.6 Mining Surface Rights and Mining Personnel 316.0 History . . . . . . . . . 317.0 Geologic Setting . . . . . . . . 34 7.1 Regional Geology . . . . . . . 34 7.2 Local Geology. . . . . . . . 368.0 Deposit Types . . . . . . . . . 519.0 Mineralization . . . . . . . . . 52 9.1 General . . . . . . . . 52 9.2 Oxide Zone . . . . . . . . 52 9.3 Mixed Zone . . . . . . . . 53 9.4 Sulfide Zone . . . . . . . . 54 9.4 Microthermometry . . . . . . . 5410.0 Exploration . . . . . . . . . 5511.0 Drilling . . . . . . . . . 5612.0 Sampling Method and Approach. . . . . . . 60 12.1 General . . . . . . . . 60 12.2 Mitsubishi Metal Mining Corp . . . . . 61 12.3 Benguet Corporation . . . . . . . 61 12.4 Echo Bay Mines Ltd. (King-king Mines Inc) . . . . 62Technical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  3. 3. King-king Copper-Gold Project iiMindanao, PhilippinesOctober 2010 Table of Contents (Continued)13.0 Sample Preparation, Analyses and Security . . . . . 63 13.1 Mitsubishi Drilling Program . . . . . . 63 13.2 Benguet Drilling Programs . . . . . . 63 13.3 Echo Bay Drilling Programs . . . . . . 64 13.4 IMC/REI Opinion of Sample Preparation, Security and Analytical Procedures . . . . . . 6814.0 Data Verification . . . . . . . . 69 14.1 Comparison of Assays with Original Assay Certificates . . 69 14.2 Echo Bay Re-Assays of Benguet Samples . . . . 78 14.3 RMMI Check Assays . . . . . . . 87 14.4 Conclusions and Recommendations . . . . . 8815.0 Adjacent Properties . . . . . . . . 9116.0 Mineral Processing and Metallurgical Testing . . . . 92 16.1 Metallurgical Samples . . . . . . 93 16.2 Grinding . . . . . . . . 98 16.3 Flotation Area . . . . . . . . 99 16.4 Analytical Procedures for Process Testing . . . . 10417.0 Mineral Reserves and Mineral Resource Estimates . . . . 106 17.1 Mineral Resource . . . . . . . 106 17.2 Mineral Reserve . . . . . . . 109 17.3 Description of the Block Model . . . . . 111 17.4 Resource Classification . . . . . . 123 17.5 Bulk Density . . . . . . . . 127 17.6 Impact of Various Drilling Campaigns . . . . 12818.0 Other Relevant Data and Information . . . . . . 130 18.1 Review of 1997 Kilborn SNC Lavalin Feasibility Report. . . 130 18.2 Conservative Mineral Resource Calculation . . . . 134 18.3 Environment and Socioeconomic Issues. . . 13419.0 Interpretation and Conclusions . . . . . . 16220.0 Recommendations . . . . . . . . 16321.0 References . . . . . . . . . 16722.0 Date and Signature Page . . . . . . . 17023.0 Additional Requirements for Technical Reports on Development Properties 171 23.1 Mining Operations . . . . . . . 171 23.2 Recoverability . . . . . . . . 172 23.3 Markets . . . . . . . . 175 23.4 Project Approach. . . . . . . . 177 23.5 Taxes and Other Payments. . . . . . . 179 23.6 Capital and Operating Costs, Economic Analysis. . . . 18024.0 Certificates of Qualified Persons. . . . . . . 18125.0 Figures . . . . . . . . . 185Appendix 1. Head Assay Analysis Log . . . . . . 204Appendix 2. Pertinent Legal Documents . . . . . . 207Appendix 3. Environmental . . . . . . . . 220Appendix 4. Relevant Samples . . . . . . . 275Technical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  4. 4. King-king Copper-Gold Project iiiMindanao, PhilippinesOctober 2010 List of Tables1-1 Mineral Resource . . . . . . . . 41-2 Economic Parameters for King-king . . . . . . 61-3 Proposed Mine and Plant Production Schedule . . . . 84-1 King-king Permits . . . . . . . . 2711-1 Drilling by Campaign . . . . . . . . 5611-2 Drilling History by Company . . . . . . . 5614-1 Comparison of Drillhole Database with Assay Certificates – Echo Bay Drilling 7314-2 Comparison of Drillhole Database with Geologic Logs – Benguet Drilling . 7514-3 Changes to Database since 2009 Due Diligence Review . . . 7614-4 RMMI Check Assays versus Original Assays – Total Copper . . 8914-5 RMMI Check Assays versus Original Assays – Gold . . . 9016-1 Sulfide Ore Sample Details . . . . . . . 9316-2 1S Composite Sample Description . . . . . . 9416-3 2S Composite Sample Description . . . . . . 9416-4 Head Grade Assays of Sulfide Ore Composites . . . . 9416-5 Mineralogy of Sulfide Ore Composite Samples . . . . 9516-6 Oxide Ore Sample Details . . . . . . . 9616-7 Oxide Composite Sample Description . . . . . 9716-8 Head Grade Assays of Oxide Ore Composite. . . . . 9716-9 Mineralogy of Oxide Ore Composite . . . . . . 9716-10 History of Grinding Tests . . . . . . . 9916-11 Oxide Flotation Results for New Reagents . . . . . 10116-12 Concentrate Impurities in Lakefield Study . . . . . 10216-13 Flotation Design Criteria . . . . . . . 10316-14 History of Flotation/Leaching Tests . . . . . . 10316-15 Head Assay Analysis Log . . . . . . . 10517-1 King-king Mineral Resource . . . . . . . 10617-2 Economic Parameters for King-king . . . . . . 10917-3 King-king Lithology for Resource Modeling . . . . . 11217-4 General Ore Type Criteria . . . . . . . 11217-5 Specific Gravity Measurements by Rock Type . . . . 12817-6 Comparison of Various Drilling Campaigns for Copper . . . 12918-1 Parameters and Resource Estimates for 1997 Kilborn Study and 2010 Study 13020-1 Proposed Drill Holes . . . . . . . . 16420-2 Additional Drilling and Study Cost 16623-1 Proposed Mine and Plant Production Schedule . . . . 173Technical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  5. 5. King-king Copper-Gold Project ivMindanao, PhilippinesOctober 2010 List of Figures1-1 Final Pit . . . . . . . . . 91-2 Conceptual Process Flow Diagram . . . . . . 114-1 Project Location . . . . . . . . 184-2 Mining Tenement Location . . . . . . . 204-3 Major Deposit Areas with Respect to Tenement Boundary . . . 225-1 Physiography . . . . . . . . . 307-1 Regional Geology . . . . . . . . 357-2 Local Geology. . . . . . . . . 377-3 Commonly Referenced Deposit Areas . . . . . 387-4 District Alteration . . . . . . . . 457-5 Mineral Prospect Areas . . . . . . . 509-1 Mineral Zones from the Block Model . . . . . 5311-1 Drillhole Locations by Campaign . . . . . . 5711-2 EB-27 Collar . . . . . . . . . 5914-1 Echo Bay Re-assay of Benguet Samples – Total Copper . . . 8114-2 Echo Bay Re-assay of Benguet Samples – Total Copper – Log Base 10 . 8214-3 %Half Relative Deviation vs Mean – Echo Bay Re-assays of Benguet Copper 8314-4 %Half Relative Deviation vs Mean – Echo Bay Re-assays of Benguet Gold 8314-5 Echo Bay Re-assay of Benguet Samples – Gold . . . . 8414-6 Echo Bay Re-assay of Benguet Samples – Gold – Log Base 10 . . 8514-7 Echo Bay Re-assay of Benguet Samples – Soluble Copper . . . 8614-8 Total Copper – RMMI Check Assay vs Original Assays . . . 8914-9 HRD% vs Mean Copper Grade for RMMI Check Assays . . . 8914-10 Gold – RMMI Check Assays vs Original Assays . . . . 9014-11 HRD% vs Mean Gold Grades for RMMI Check Assays . . . 9016-1 Process Flow Diagram . . . . . . . 9217-1 Resource Cone . . . . . . . . 11017-2 Model Lithology – 325 Bench . . . . . . 11317-3 Model Lithology on Section 10,300 . . . . . . 11417-4 Structural Zones with GT Data . . . . . . 11517-5 Box Plot of Total Copper by Rock Type – 15m Composites . . . 18617-6 Box Plot of Soluble Copper by Rock Type – 15m Composites . . 18717-7 Box Plot of Gold by Rock Type – 15m Composits . . . . 18817-8 Probability Plot of Total Copper by Rock Type – 15m Composites . . 18917-9 Probability Plot of Soluble Copper by Rock Type – 15m Composites. . 19017-10 Probability Plot of Gold by Rock Type – 15m Composites . . . 19117-11 Box Plot of Total Copper by Structural Zone – 15m Composites . . 19217-12 Box Plot of Soluble Copper by Structural Zone – 15m Composites . . 19317-13 Box Plot of Gold by Structural Zone – 15m Composites . . . 19417-14 Probability Plot of Total Copper by Structural Zone – 15m Composites . 19517-15 Probability Plot of Soluble Copper by Structural Zone – 15m Composites . 19617-16 Probability Plot of Gold by Structural Zone – 15m Composites . . 19717-17 Box Plot of Total Copper by Oxide/Sulfide Code – 15m Composites . 198Technical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  6. 6. King-king Copper-Gold Project vMindanao, PhilippinesOctober 2010 List of Figures (Continued)17-18 Box Plot of Soluble Copper by Oxide/Sulfide Code – 15m Composites . 19917-19 Box Plot of Gold by Oxide/Sulfide Code – 15m Composites . . 20017-20 Probability Plot of Total Copper by Oxide/Sulfide Code – 15m Composites 20117-21 Probability Plot of Soluble Copper by Oxide/Sulfide Code – 15m Composites 20217-22 Probability Plot of Gold by Oxide/Sulfide Code – 15m Composites . . 20317-23 Total Copper Variograms. Host Rocks in Sulfide Zone . . . 11817-24 Total Copper Variograms. Intrusive Rocks in Sulfide Zone . . . 11917-25 Copper Grades on Section 10,300 . . . . . . 12117-26 Gold Grades on Section 10,300 . . . . . . 12217-27 Resource Classification for Total Copper . . . . . 12417-28 Resource Classification for Gold . . . . . . 12517-29 Cross Section 10350 Showing Resource Classification . . . 12617-30 Specific Gravity versus Ascu/Tcu Ratio . . . . . 12718-1 Permitting Roadmap for the King-king Project . . . . 13918-2 Illegal Small-Scale Mining at the King-king Site . . . . 14118-3 View of Pantukan, Excessive Siltation in the King-king River . . 14218-4 The King-king River in the Lowlands as It Enters the Davao Gulf . . 14418-5 The King-king River in the Lowlands . . . . . 14518-6 The King-king River in the Low Mountains . . . . . 14518-7 The King-king River in the High Mountains Surrounding the Project Site . 14618-8 The King-king Project Site (View 1) . . . . . . 14718-9 The King-king Project Site (View 2) . . . . . . 14718-10 The King-king Project Site – Showing Eroded Area . . . . 15018-11 Illegal Small Miners’ Living Quarters and Processing Facilities . . 15020-1 Proposed Holes . . . . . . . . 16523-1 Final Pit Design . . . . . . . . 17423-2 Copper Supply, Mt Contained Copper (from BHP-Billiton) . . . 17623-3 Copper Prices and Inventories (from Freeport McMoRan) . . . 176Technical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  7. 7. King-king Copper-Gold Project 1Mindanao, PhilippinesOctober 20101.0 Summary1.1 GeneralThis Technical Report presents a mineral resource estimate for the King-king Copper-GoldProject in eastern Compostela Valley, Mindanao, Philippines. King-king has beenextensively drilled, sampled, and delineated and constitutes a significant copper-gold deposit.This document summarizes the resource tonnage, grade, and classification and otherpertinent information consistent with NI 43-101. This report contains an initial life of mineplan which utilizes the resource established herein by Independent Mining Consultants, Inc.(IMC). The King-king Project is not currently an operating property and there has not beenany commercial scale production from the property.This document follows the format of Form 43-101F1 for Technical Reports in Canada andJORC Code guidelines for Public Reports in Australia. The mineral resource estimate wasprepared for Ratel Gold Limited (Ratel) and Russell Mining and Minerals, Inc, (RMMI).The King-king Copper-Gold Project is held in a Mineral Production Sharing Agreement(MPSA#009-92-XI, approved by the government May 27, 1992 and amended December 11,2002) by The Philippine Government, NADECOR (Nationwide Development Corporation),and Benguet Corporation. The MPSA grants the parties to the MPSA the exclusive right toexplore, develop and exploit minerals within the area comprising the King-king deposit. Thedeposit size depicted in Figure 1-1 below is 2.5 square kilometers and the area of the MineralProperty in the MPSA is 15.5 square kilometers (see Figure 4-2). There is a memorandum ofunderstanding (MOU) between NADECOR and St. Augustine Mines Ltd., a subsidiary ofRussell Mining and Minerals, Inc. (RMMI), that provides for formation of a Joint Venture(JV) once Benguet Corporation is eliminated from the MPSA. Under the MOU, RMMIretains the exclusive right to develop the project through itself or an associated entity. Rateland RMMI have agreed to complete a Share Exchange Agreement wherein Ratel will gain100 percent control of SAML and RMMI will be compensated in Ratel equity.This work was completed by three companies, Independent Mining Consultants (IMC),AATA International, Inc. (AATA) and Resource Evaluation Inc. (REI). Theirresponsibilities and the qualified persons are listed in Section 2.0 (Introduction).The King-king Copper/Gold Project is located approximately 92 road kilometers from DavaoCity, Mindanao, Philippines. King-king is a gold-rich porphyry copper deposit spatiallyrelated to significant epithermal vein systems that can be potentially exploited by open pitmining methods to produce economic concentrations of gold and copper. Most of themineralization is amenable to flotation and to gravity concentration to produce twoconcentrates: 1) a copper-gold concentrate and 2) a gold concentrate. The porphyry depositis spatially related to significant epithermal vein systems which with further explorationcould prove to host economically important precious metal mineralization.Technical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  8. 8. King-king Copper-Gold Project 2Mindanao, PhilippinesOctober 20101.2 GeologyThe King-king Deposit is a porphyry copper-gold deposit hosted by hornblende biotitediorite porphyritic rocks that intrude interbedded sediments, submarine volcanic rocks, andvolcanoclastic sediments. The intrusive rocks are believed to be Miocene in age, while thethe wall rocks are Cretaceous to early Tertiary. Copper and gold mineralization occurs at ornear the apex of the composite diorite intrusive complex within the intrusive rocks andextending well into the surrounding wall rocks.The majority of the sulfide copper mineralization in the King-king deposit consists ofchalcopyrite and bornite, with lesser amounts of chalcocite, digenite, and covellite. Rapidregional uplift and erosion likely caused the nearly complete removal of a classical leachedcap and prevented the development of typically thick oxide and supergene enriched zonesfound in other major porphyry deposits. Copper mineralization in the oxide zone includesmalachite, chrysocolla, cuprite, and tenorite. Gold is relatively abundant in the oxide zone,as evidenced by widespread gold panning and small-scale mining activities on the oxidizedslopes above the main King-king zone. Gold occurs in the sulfide zone of the deposit in freeform in close association with bornite and as exsolution intergrowths in other sulfides,particularly chalcopyrite. Native gold is occasionally observed on fractures and inquartz veinlets.The King-king deposit is pyrite-poor, averaging less than one percent by volume for theentire deposit. This is reflected by the relative absence of a pyrite halo that is commonlydeveloped around many porphyry copper deposits. For process development purposes, two types of mineralization are considered: sulfide andoxide (which includes mixed oxide-sulfide material).1.3 ExplorationExploration of the King-king deposit has spanned a few decades, and represents the efforts ofnumerous companies and individuals. A wide variety of techniques have been employed,including: 1) Surface mapping and sampling 2) Drilling (primarily diamond core) 3) Adit and raise sampling 4) Geochemistry (soil, stream, and down-hole) 5) Development of cross sections, long sections, and plan maps 6) Physical and computer-generated three-dimensional modeling.A significant portion of past work focused on drilling to explore, define and confirm theeconomic potential of the property.Technical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  9. 9. King-king Copper-Gold Project 3Mindanao, PhilippinesOctober 2010The interpretation of the exploration work done to date is that the King-king deposit is asignificant copper-gold porphyry system with the potential to become an economic project.The drilling done to date has also been used to develop an NI 43-101 compliant mineralresource for the deposit, as presented in Section 1.4 and 17.All of the exploration data collection, including the drilling data, is historic data compiled byprevious property owners. Ratel and its contractors were not involved in the compilation ofthis data. The only work conducted by Ratel and its contractors is the interpretation of themapping and drilling data to develop the current mineral resource.Future drilling will focus on geotechnical diamond drilling to obtain core samples for pit wallstability analysis, final slope angle definition and hydrology-pore pressure studies, andhydrogeological studies. Additional diamond drilling will collect samples for metallurgytesting, in-fill certain areas of the deposit for confirmation of gold assays generated by theearlier Benguet drilling, and to better define certain lithologic contacts.1.4 Mineral ResourceA major task of IMC is the establishment of a mineral resource including tonnage, ore grade,and classification. The mineral resource was developed based on historic drilling that wascompleted by three companies from 1972 – 1997 (Mitsubishi Corporation, BenguetCorporation and Echo Bay Mining. The assay information was on electronic files. Thesefiles were checked and corrected by hand comparison to assay certificates and printedscanned paper logs, and an electronic data base for assembly of a block model was produced.An important aspect of IMC’s mandate is to verify the validity of drill and assay data. Aspart of this project, 100 core samples for independent check assay analysis were recoveredfrom the core drilled by Benguet and Echo Bay that is currently stored at the core shedlocated in Pantukan City, Compostela Valley. The results of those assays confirm thepresence of gold and copper. IMC and REI hold the opinion that these recent check assaysprovide sufficient confidence that the data generated and compiled by Benguet and Echo Bayare valid for the estimation of measured and indicated mineral resources.The King-king Copper/Gold deposit is currently envisioned to be mined using large scaleopen pit mining methods to produce ore to a flotation concentrator. Initial estimates ofmining, process, and overhead costs were applied along with initial estimates of process andmining recovery to establish an estimate of mineral resources that have reasonableexpectation of economic extraction. Table 1-1 summarizes the mineral resources at theKing-king Copper/Gold Project as determined by IMC.Technical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  10. 10. King-king Copper-Gold Project 4Mindanao, PhilippinesOctober 2010 Table 1-1. King-king Mineral Resource 10/4/2010 Ore Ore Eq Cu Tot Cu Sol Cu Gold Eq Au Type Ktonnes (%) (%) (%) (g/t) (g/t) Measured Mineral Resource Oxide 40,879 0.855 0.444 0.266 0.575 1.196 Sulfide 66,402 0.536 0.269 0.037 0.445 0.894 Total 107,281 0.658 0.336 0.124 0.495 1.009 Indicated Mineral Resource Oxide 120,443 0.654 0.349 0.210 0.428 0.916 Sulfide 563,800 0.454 0.253 0.032 0.335 0.757 Total 684,243 0.489 0.270 0.063 0.351 0.785 Measured/Indicated Mineral Resource Oxide 161,322 0.705 0.373 0.224 0.465 0.987 Sulfide 630,202 0.463 0.255 0.033 0.347 0.771 Total 791,524 0.512 0.279 0.072 0.371 0.815 Inferred Mineral Resource Oxide 31,915 0.541 0.288 0.167 0.353 0.756 Sulfide 93,548 0.394 0.219 0.025 0.292 0.657 Total 125,463 0.431 0.237 0.061 0.308 0.682 Notes: Eq Cu (oxide) = Total Copper + 0.715 x Gold, Cutoff = 0.27% Eq Cu Eq Cu (sulfide) = Total Copper + 0.600 x Gold, Cutoff = 0.23% Eq Cu Alternatively, as Equivalent Gold: Eq Au (Oxide) = Gold + 1.399 x Total Copper, Cutoff = 0.37 g/t Eq Au Eq Au (Sulfide) = Gold + 1.668 x Total Copper, Cutoff = 0.38 g/t Eq Au Total Material in Cone Shell 1,429,845 Ktonnes Waste:Ore Ratio 0.81 (Inferred as Waste) Waste:Ore Ratio 0.56 (Inferred as Ore)Measured and indicated mineral resource amounts to 791.5 million tonnes at 0.512% copperequivalent, 0.279% total copper, 0.072% soluble copper, and 0.371 g/t gold. Inferred mineralresource is an additional 125.5 million tonnes at 0.431% copper equivalent, 0.237% totalcopper, 0.061% soluble copper, and 0.308 g/t gold. The measured and indicated mineralresource consists of 4.9 billion pounds of contained copper and 9.4 million troy ounces ofcontained gold. The last column of the table also shows that with metal grades defined interms of equivalent gold, instead of equivalent copper, the equivalent gold grade of themeasured and indicated mineral resource is 0.815 g/t gold equivalent (0.99 g/t for the oxideresource and 0.77 g/t for the sulfide resource).Based on current market conditions, Independent Mining Consultants, Inc. (IMC) wouldclassify the King-king deposit as a copper-gold co-product deposit. The historicalprecedence is to rank the minerals in a deposit in order of economic significance, which isgenerally defined in terms of gross revenue. Based on the measured and indicated mineralresource for King-king and the October 1, 2010 closing spot prices of $3.68 per poundTechnical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  11. 11. King-king Copper-Gold Project 5Mindanao, PhilippinesOctober 2010copper and $1320 per ounce gold, and preliminary estimates of plant recovery and smelterpayable amounts (Table 1-2), about 60% of the potential revenue is due to copper and 40%due to gold. Since the gold contribution is more than 25% of total revenue, gold is classifiedas a co-product, instead of a by-product. At the $1320 gold price the copper price wouldhave to drop to about $2.50 per pound for gold to be the predominant revenue driver.The resources are contained within a floating cone pit shell and are compliant with the“reasonable prospects for economic extraction” clauses of Canada’s NI 43-101 regulationsand also Australia’s JORC code. The cone shell is based on a copper price of US$ 1.75 perpound and a gold price of US$ 660 per troy ounce.For $1.75 copper and $660 gold, copper equivalent grades are defined as: Eq Cu (Oxide Ores) = Total Copper + 0.715 x Gold Eq Cu (Sulfide Ores) = Total Copper + 0.600 x GoldAnd breakeven copper equivalent cutoff grades are 0.27% and 0.23% for oxide and sulfiderespectively. Table 1-2 summarizes the economic parameters used.Only measured and indicated resource blocks were allowed to contribute to the developmentof the floating cone shell used for the resource tabulation; inferred blocks were treated aswaste to develop the cone shell.There is no guaranty that any of the mineral resource will be converted to mineral reserve.There is also no guaranty that inferred mineral resource will be upgraded to measured orindicated mineral resource or mineral reserves.IMC has also developed a preliminary mining production schedule (i.e. production forecast)for the King-king Project. Seven mining phases were designed to do the scheduling. Thephases include haulage roads and adequate working room for large mining equipment.Figure 1-1 shows the final pit design. The final pit design was based on the economicparameters shown above, including commodity prices of $1.75 per pound copper and $660per ounce gold. Only measured and indicated mineral resource was allowed to contribute tothe design.Technical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  12. 12. King-king Copper-Gold Project 6Mindanao, PhilippinesOctober 2010 Table 1-2. Economic Parameters for King-king $1.75 Cu / $660 Au Parameter Units Oxide/Mix Sulfide Copper Price Per Pound (US$) 1.750 1.750 Gold Price Per Troy Ounce (US$) 660 660 Base Mining Cost Per Tonne Material (US$) 1.100 1.100 Mine Replacement Capital Per Tonne (US$) 0.150 0.150 Lift Cost Per Bench Below 250 (US$) 0.015 0.015 Process Cost Per Ore Tonne (US$) 4.200 4.200 G&A Cost Per Ore Tonne (US$) 0.600 0.600 Process Recovery of Copper (Average) (%) 74.3% 85.9% Process Recovery of Gold (Average) (%) 83.4% 80.9% Smelting/Refining Payable for Copper (%) 96.4% 96.4% Smelting/Refining Payable for Gold (%) 95.0% 95.0% SRF Cost Per Pound Copper (US$) 0.260 0.260 NSR Royalty (%) 3.0% 3.0% NSR Factor for Total Copper (US$) 22.822 26.385 NSR Factor for Gold (US$) 16.308 15.819 Gold Factor for Copper Equivalent (none) 0.715 0.600 Total Copper Equivalent Cutoff Grades Breakeven (without lift) (%Cu) 0.27 0.23 Internal (%Cu) 0.21 0.18 Copper Factor for Gold Equivalent (none) 1.399 1.668 Gold Equivalent Cutoff Grades Breakeven (without lift) (g/t) 0.37 0.38 Internal (g/t) 0.29 0.30Table 1-3 shows the mine production schedule. Ore production varies by year because it isbased on 8766 plant hours per year with an oxide/mixed ore processing rate of 48,300 ktpy(0.1815 hrs/kt) and a sulfide processing rate of 36,500 ktonnes per year (0.2402 hrs/kt). Oremined during preproduction and Year 1 amounts to 36,800 ktonnes or about 80% of nominalplant capacity. The copper equivalent cutoff grade varies by year to balance the mine andplant production rates.Preproduction stripping requirements are minimal at 12.7 million tonnes. Total material isscheduled at 51.2 million tonnes for Year 1. Years 2 through 16 total material requirementsare about 72 million tonnes per year.This schedule results in 812.5 million ore tonnes at 0.275% total copper, 0.367 g/t gold and0.506% copper equivalent. This is measured and indicated resource only, inferred resource isconsidered waste. Total material is 1.46 billion tonnes.Technical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  13. 13. King-king Copper-Gold Project 7Mindanao, PhilippinesOctober 2010The table also shows that between a potential low-grade cutoff grade of 0.2% copperequivalent and the operating cutoff grade for each year there is the potential to stockpile 49.7million ore tonnes at 0.160% copper and 0.132 g/t gold.The table also shows a proposed plant production schedule. Year 1 is shown as the oremined during preproduction and Year 1 and Years 22 and 23 include the low grade.Including the low grade, total plant production amounts to 862.2 million ore tonnes at0.268% total copper, 0.354 g/t gold, and 0.491% copper equivalent.Total plant production is about 9% more ore tonnes than the measured/indicated mineralresource. The mineral resource was tabulated at breakeven cutoff grades of 0.27% Eq Cu foroxide and 0.23% Eq Cu for sulfide. Operating cutoff grades for the production schedulewere allowed to go down to 0.21% Eq Cu (internal cutoff) for oxide/mixed material and0.20% Eq Cu for sulfide.Technical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  14. 14. King-king Copper-Gold Project 8Mindanao, PhilippinesOctober 2010Table 1-3. Proposed Mine and Plant Production Schedule Mine Production Schedule Low Grade Stockpile Proposed Plant Schedule Mining Cu Eq Ore Cu Eq Tot Cu Sol Cu Gold Ore Cu Eq Tot Cu Sol Cu Gold Waste Total Waste: Ore Cu Eq Tot Cu Sol Cu Gold Hours/ Plant Year Cutoff (%) Ktonnes (%) (%) (%) (g/t) Ktonnes (%) (%) (%) (g/t) Ktonnes Tonnes Ore Ktonnes (%) (%) (%) (g/t) Ktonne Hours PP 0.32 4,830 0.642 0.492 0.275 0.212 2,363 0.263 0.166 0.101 0.135 5,500 12,693 0.76 1 0.32 31,970 0.791 0.466 0.299 0.459 1,427 0.282 0.203 0.060 0.120 17,841 51,238 0.53 36,800 0.771 0.469 0.296 0.427 0.1897 6,979 2 0.36 43,874 0.875 0.412 0.226 0.676 9,871 0.295 0.228 0.138 0.097 17,750 71,495 0.33 43,874 0.875 0.412 0.226 0.676 0.1998 8,766 3 0.30 42,410 0.802 0.392 0.154 0.623 2,743 0.258 0.161 0.088 0.141 26,847 72,000 0.59 42,410 0.802 0.392 0.154 0.623 0.2067 8,766 4 0.26 42,700 0.556 0.227 0.082 0.492 6,353 0.233 0.116 0.037 0.176 22,947 72,000 0.47 42,700 0.556 0.227 0.082 0.492 0.2053 8,766 5 0.26 39,190 0.568 0.256 0.058 0.490 6,956 0.231 0.135 0.034 0.156 25,854 72,000 0.56 39,190 0.568 0.256 0.058 0.490 0.2237 8,767 6 0.25 40,490 0.483 0.332 0.094 0.241 5,416 0.227 0.172 0.048 0.086 26,094 72,000 0.57 40,490 0.483 0.332 0.094 0.241 0.2165 8,766 7 0.23 36,740 0.457 0.323 0.033 0.223 2,624 0.216 0.153 0.013 0.105 32,636 72,000 0.83 36,740 0.457 0.323 0.033 0.223 0.2386 8,766 8 0.20 37,300 0.506 0.326 0.050 0.297 34,700 72,000 0.93 37,300 0.506 0.326 0.050 0.297 0.2350 8,766 9 0.20 37,670 0.497 0.304 0.048 0.318 34,330 72,000 0.91 37,670 0.497 0.304 0.048 0.318 0.2327 8,766 10 0.20 37,770 0.444 0.300 0.043 0.235 34,230 72,000 0.91 37,770 0.444 0.300 0.043 0.235 0.2321 8,766 11 0.24 36,880 0.438 0.274 0.033 0.270 3,896 0.223 0.148 0.016 0.123 31,224 72,000 0.77 36,880 0.438 0.274 0.033 0.270 0.2377 8,766 12 0.24 36,630 0.436 0.245 0.029 0.317 3,252 0.222 0.137 0.012 0.142 32,118 72,000 0.81 36,630 0.436 0.245 0.029 0.317 0.2393 8,766 13 0.24 36,590 0.446 0.227 0.029 0.364 2,586 0.222 0.124 0.015 0.163 32,824 72,000 0.84 36,590 0.446 0.227 0.029 0.364 0.2396 8,767 14 0.24 36,510 0.468 0.227 0.029 0.401 2,215 0.222 0.113 0.015 0.182 33,275 72,000 0.86 36,510 0.468 0.227 0.029 0.401 0.2401 8,766 15 0.20 36,590 0.432 0.205 0.029 0.378 35,410 72,000 0.97 36,590 0.432 0.205 0.029 0.378 0.2396 8,767 16 0.20 36,690 0.419 0.210 0.032 0.348 35,310 72,000 0.96 36,690 0.419 0.210 0.032 0.348 0.2389 8,765 17 0.20 36,510 0.349 0.185 0.031 0.273 30,991 67,501 0.85 36,510 0.349 0.185 0.031 0.273 0.2401 8,766 18 0.20 36,500 0.373 0.205 0.033 0.280 25,321 61,821 0.69 36,500 0.373 0.205 0.033 0.280 0.2402 8,767 19 0.20 36,500 0.385 0.206 0.031 0.299 19,668 56,168 0.54 36,500 0.385 0.206 0.031 0.299 0.2402 8,767 20 0.20 36,500 0.408 0.217 0.027 0.318 14,994 51,494 0.41 36,500 0.408 0.217 0.027 0.318 0.2402 8,767 21 0.20 36,500 0.393 0.189 0.025 0.340 15,293 51,793 0.42 36,500 0.393 0.189 0.025 0.340 0.2402 8,767 22 0.20 15,112 0.458 0.244 0.038 0.357 8,458 23,570 0.56 39,058 0.327 0.193 0.050 0.219 0.2244 8,766 23 25,756 0.245 0.160 0.058 0.132 0.2145 5,524 TOTAL 812,456 0.506 0.275 0.069 0.367 49,702 0.245 0.160 0.058 0.132 593,615 1,455,773 0.69 862,158 0.491 0.268 0.068 0.354 0.2280 196,597Technical Report / Form 43-101F1
  15. 15. King-king Copper-Gold Project 9Mindanao, PhilippinesOctober 2010 Figure 1-1. Final PitTechnical Report / Form 43-101F1
  16. 16. King-king Copper-Gold Project 10Mindanao, PhilippinesOctober 20101.5 Mineral Processing and Recovery to Saleable ProductThe ore is planned to be delivered to the primary crusher next to the final pit perimeter andthen crushed ore conveyed approximately 3.6 overland kilometers to the mill located in thelow lands at approximately 200 meter elevation. Process tailing would be pipeline conveyedto a tailing management facility starting at an estimated 40 meters above sea level and alsolocated in the lowlands. The process plant will grind the ore utilizing a SAG mill followedby three balls mill to reduce the ore for copper flotation to an estimated P80 150 microns.The majority of the gold is expected to be recovered with the copper in the concentrate.There will be some gold recovered by gravity concentrator circuits as shown in Figure 1-2, aconceptual process flow diagram.Additional ore throughput is expected in the early years of production because the grindingcircuit is designed at the higher bond work index of 16 kWh/tonne, which is for the sulfidezone ore. The early years of production (1-6) will experience softer ore due to the higheramount of oxide and mixed zone ore treated (bond work index of 12). There is significantupside potential in that time period to process higher tonnages and the downstream processes(screens, pumps, pipes, float cells, thickeners, etc.,) will be sized to accommodate 25%higher throughput.The flow sheet was based on sequential flotation circuits (sulfide copper first) for producingcopper concentrates containing gold from copper sulfide minerals (chalcopyrite and bornite)and from copper oxide minerals (malachite principally). The copper sulfide mineral flotationcircuit was designed based on the feasibility level testing performed in 1997 at the Lakefield,Ontario research facility. Copper oxide mineral flotation circuit design was based on RMMIinterpretation of the results from commercial mine reports and research reports on otherprojects and mines utilizing typical reagents and flow sheets developed for oxide mineralflotation.The Lakefield studies indicated 85% of the total copper in the sulfide zone ore would reportto the final copper concentrate. The sulfide ores tested contained between 3 and 15 percentacid soluble copper. The actual copper sulfide mineral recoveries would have beensignificantly higher than 85% when factoring in the acid soluble portion that would have hadlow recovery. In this study sulfide copper was defined as copper in sulfide minerals andfrom a data base assay point of view it was total copper minus soluble copper.RMMI research on flotation of malachite (predominant copper oxide mineral at King-king) atcommercial mines, recent feasibility studies and other reported copper oxide flotation studiesshowed that 72 to 90 percent of malachite and chrysocolla are recovered in flotation. Mostof the results fall in the 75% recovery range. Soluble copper (copper oxide minerals)flotation recoveries used in this resource estimate ranged mostly from the high 50’s percentto the mid 60’s percent recovery depending on the soluble copper head grade. Therefore,conservative estimates for recovery of soluble copper by flotation were assumed at this levelof study.Technical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  17. 17. King-king Copper-Gold Project 11Mindanao, PhilippinesOctober 2010 Primary Sulfide Cleaner SAG Mill Ball Mills Crushing Flotation Flotation Gold Gravity EW Type Oxide Concentrate Circuit Gold Circuit Flotation Dewatering at Port Intensive Gold Dore Cyanide Gold Gravity Shipped to Leach Circuit Concentrate Refinery Stored at Port until Shipped to Land Tailing Smelter Legend: Management Ore System Concentrate Tailing Gold Figure 1-2. Conceptual Process Flow DiagramThe copper-gold concentrate grade is expected to range from 29 to 33% copper and 13 to 71grams per tonne gold and average 31% copper and 35 grams per tonne gold. The concentrategrades were estimated by final concentrate results reported in the 1997 Lakefield studiescombined with the 2009 King-king Project mine plan and from final concentrate gradesreported for results from commercial mine reports and research reports on other projects andmines utilizing typical reagents and flow sheets developed for copper oxide mineral flotation.1.6 Environmental and PermittingBased on the known information provided to date, AATA International, Inc (AATA).(Environmental Consultants, See Section 2.0) sees no environmental issues that wouldprevent the permitting of the proposed operations. Although AATA currently does not seeany permitting issues that would prevent the operation of the proposed King-kingCopper/Gold Project, AATA cannot predict all the concerns or issues the permitting agenciesmay have with the proposed project during the permitting process, nor can AATA controlhow long the agencies will take to issue the necessary permits. At this time, quantification ofall the environmental impacts of the proposed facilities and operations is not possible. Abetter understanding of these will be developed during the permitting process.Technical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  18. 18. King-king Copper-Gold Project 12Mindanao, PhilippinesOctober 20101.7 Conclusions and RecommendationsThe results of this study indicate that the King-king Project has the potential to become aneconomic producer of copper and gold. However, more information will be required to movethe project forward.IMC and REI recommend an initial drill program of about 16 diamond drill holes that willadd confidence, and additional resources, particularly gold resources, to the King-king Gold-Copper Deposit. In additional to geology and assay information, these holes will provideinformation for a broad range of topics at King-king such as metallurgy, acid rockcharacteristics, geotechnical issues, including slope stability, etc.Following the recommended development work and studies, including metallurgical work, adefinitive project plan will be developed by the owner. This will include the definitivestudies for plant location, mine design, infrastructure, and construction plan. This will resultin a sufficient data for economic evaluation to bankable standards, concluding in a BankableFeasibility Study (BFS) within approximately 24 months.A new topographic survey of the mine, valueless rock storage, plant, and tailings storageareas will also be required. The last survey was conducted in 1997. Significant artisanalmining activity and also natural erosion have impacted the surface topography.Process testing on new core should address the following items:  Optimum primary grinding size for various ore zones and lithology types  Geo-statistical analysis of grinding and flotation  Copper oxide mineral response to flotation with recently developed and commercialized oxide flotation reagents and flow sheets  A thorough study of regrind product size  Optimized cleaner flotation reagent schemes and flow sheet for ore variations  Evaluate centrifugal gravity and flash flotation recovery of gold from the primary grinding circuit and from tailing streams in flotation  Evaluate concentrate processing by hydrometallurgical methods to recover gold and copper at site  Rheology studies on tailing for settler design and tailing dam design  Settling and filtration studies on concentrates for dewatering purposesBenguet gold assays were not used in the current mineral resource estimate. Work done byEcho Bay, and confirmed by IMC, shows the Benguet gold assays are biased high by about10%. There were however about 1493 Echo Bay re-assays of Benguet samples that wereavailable for the current resource estimate. IMC recommends an initial re-assaying of aabout 200 Benguet drill hole pulps and their corresponding remaining half of core for totalcopper and gold. The purpose is to determine if the bias observed in the Benguet gold assayswas due to sample preparation or the analytical work (or both). Based on the outcome ofTechnical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  19. 19. King-king Copper-Gold Project 13Mindanao, PhilippinesOctober 2010this, additional Benguet pulps and/or core will be assayed to supplement the existingdatabase and improve the confidence of mineral resource and mineral reserve estimates.The proposed budget for the additional drilling, analysis of the drill results and abovementioned studies is: $3.4 million USD. Ratel plans to implement the drill program duringthe fourth quarter of 2010.Technical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  20. 20. King-king Copper-Gold Project 14Mindanao, PhilippinesOctober 20102.0 Introduction and Terms of ReferenceRatel Gold Limited and Russell Mining and Minerals, Inc. requested the development of amineral resource estimate and Technical Report for the King-king Copper-Gold Project fromthe following team of consulting firms: Person / Company Summarized Responsibility Donald Earnest Geology and History Resource Evaluation, Inc. (REI) John Aronson Environmental, Permitting AATA International (AATA) Michael G. Hester Resources and Report Assembly Independent Mining Consultants, Inc. (IMC)The mineral resource estimate is compliant with Canadian National Instrument 43-101 (NI43-101).The above group worked together as a team and each provided a qualified person for thisTechnical Report under the definitions of NI 43-101. Michael Hester acted as the primaryauthor of the Technical Report.The King-king Copper-Gold Project is a porphyry sulfide deposit that is potentially amenableto large scale open pit mining. The project is located in southeastern Mindanao of thePhilippines.This work was started in May of 2010 and this final Technical Report was completed inSeptember 2010.Historic drill data was obtained from electronic drill logs and electronic drill hole data bases,as well as, paper assay certificates that were on file under the control of RMMI. IMCpersonnel transferred and keypunched the drill hole information into computer files for use inthe generation of the computer based block model and mineral resource estimate.The King-king Copper-Gold Project has also been referred to historically as the King-kingCopper Gold Porphyry Project. The drilling for the project was conducted between 1969 and1997 by a few different companies, including: Echo Bay, Benguet Corporation andMitsubishi Corporation.A number of historic reports have been prepared that were of value as background in thedevelopment of this report. Those reports are listed in the reference section of this TechnicalReport.Technical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  21. 21. King-king Copper-Gold Project 15Mindanao, PhilippinesOctober 2010Don Earnest visited the property on June 4 - 7, 2010 in the company of SAMI management.Don Earnest visited the core shed to review the condition of the drill core, confirm lithologyand alteration of the core and select core sample intervals for assay verification purposes.Don Earnest and SAMI management reviewed the core, toured the property, and visitedpotential mining infrastructure sites.This report is in metric units. Tonnes are metric tons of 2204.6 pounds (lbs). Ktonnes means1000 metric tons. Precious metal grades for gold and silver are presented in grams or troyounces per tonne and the abbreviation koz is 1000 troy ounces. Metal grades for copper arein percent by weight. Quantities of copper are often expressed in pounds (lbs) since pricesare typically quoted in lbs on world markets.Technical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  22. 22. King-king Copper-Gold Project 16Mindanao, PhilippinesOctober 20103.0 Reliance on Other ExpertsThis Technical Report was assembled by the team of consultants as outlined in Section 2.0.Each was responsible for specific chapters in this report. Final assembly of the report wasaccomplished by Michael Hester of Independent Mining Consultants, Inc. who also acted asthe primary author of the Technical Report.The chapter responsibilities are summarized below: Qualified Person Section ResponsibilitiesDonald Earnest, Resource Evaluation, Inc Sections 5 through 13John Aronson, AATA International, Inc. Section 18.3Michael Hester, Independent Mining Consultants, Inc. Sections 1, 2, 3, 4, 14, 15, 16, 17, 18, 19, 20, 23Independent Mining Consultants, Inc, and the consultants listed above have not verified oraudited the property ownership as outlined in Section 4.0. The authors have relied on theopinion of Land Council to Ratel as evidenced in the letter provided by Ramon Adviento,land expert in the Philippines (his office is in Davao City, Mindanao) regarding the landstatus in a letter to RMMI dated August 10, 2010 (Appendix 2, Exhibit 3). According to theletter NADECOR has been granted the mineral rights by the government of the Republic ofthe Philippines. Ratel, through its equity in SAML, will have the right to continueexploration and development of the property once their Joint Venture agreement withNADECOR is finalized.Where possible, the authors have confirmed information provided by SAMI or previousauthors by comparison against other data sources or by field observation.AATA has reviewed the environmental situation of the property as can be determined fromexisting reports and tertiary data available. IMC has assumed that any operating permit andreclamation requirements are properly accounted for in the information provided by AATA,RMMI and Ratel and that any potential future operations will not be prejudiced byenvironmental, permitting, or related constraints.IMC has not audited the process plant or tailing design information presented in thisdocument. The developed concepts concerning these are typical for the industry. The testingdata presented in Section 16 is historic in nature; most of it was developed for the Echo Baystudy. The primary author has no reason to doubt its validity.AATA currently does not see any permitting issues that would prevent the operation of theproposed King-king Copper/Gold Mine, but AATA cannot predict all the concerns or issuesthe permitting agencies may have with the proposed project during the permitting process,nor can AATA control how long the agencies will actually take to eventually issue thenecessary permits. At this time, quantification of all the environmental impacts of theTechnical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  23. 23. King-king Copper-Gold Project 17Mindanao, PhilippinesOctober 2010proposed facilities and operations is not possible. A better understanding of these will bedeveloped during the permitting process.Technical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  24. 24. King-king Copper-Gold Project 18Mindanao, PhilippinesOctober 20104.0 Property Description and Location4.1 Property LocationThe King-king Project is centered at approximate geographical coordinates 7°11’31”NLatitude and 125°58’40”E Longitude on the Philippine Island of Mindanao. Figure 4-1shows the location. The project site is located at Sitio Gumayan, Barangay King-king,Municipality of Pantukan, Province of Compostela Valley, in Mindanao. Figure 4-1. Project LocationTechnical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  25. 25. King-king Copper-Gold Project 19Mindanao, PhilippinesOctober 20104.2 Land Area and Mining Claim DescriptionThe King-king tenement has a total land area of 1,548 hectares and is shown in Figure 4-1.All mineral resources within the Republic of the Philippines are owned by the State and,unless otherwise closed, withdrawn or claimed, are open to exploration by way of miningclaims, leases or agreements with the Philippine government. The King-king deposit islocated within the boundaries of the King-king MPSA (Mineral Production SharingAgreement No. 009-92-XI), which was approved by the government on May 27, 1992 for aninitial term of 25 years and covers approximately 1,656 hectares. The MPSA was amendedon December 11, 2002 to bring it in line with Republic Act No. 7942, otherwise known as“The Philippine Mining Act of 1995.” The MPSA is in favor of NADECOR as ClaimOwner-Leaseholder and Benguet as Operator. It grants to NADECOR (owners) and Benguetthe exclusive right to explore, develop, mine and operate minerals within the tenement area,including surface access to exercise such rights. Production from the MPSA is subject to agovernment share (royalty) comprised of an excise tax, which is payable in addition to otherprescribed taxes and fees.The King-king MPSA is a conversion of mining leases covering 184 mining claims that areowned by NADECOR. Benguet would obtain a 50 percent earn-in through funding of 100percent of the development and construction of the mine under an Operating Agreementdated August 21, 1981 and amended December 11, 2002.Subsequently, Echo Bay Mines Inc. (EBMI), TVI Pacific (TVI) and King-king Mines, Inc.(KMI) entered into option agreements executed on October 25, 1995 with Benguet wherebyBenguet granted KMI the option to purchase within 24 months or up to October 25, 1997,Benguets interest in the agreement, and the NADECOR royalty, the government share, andthe right of Benguet to buy back a 20 percent (20%) interest in KMI.After drilling the property, EBMI and TVI opted not to exercise the option that expired onOctober 25, 1997. The property then reverted to original ownership.On August 29, 2008 NADECOR terminated its Operating Agreement with BenguetCorporation under the terms of the agreement due to the failure to execute on work plans forsix consecutive years. On May 26, 2008 and again on December 10, 2009, NADECOR fileda motion with the Secretary of the DENR to remove Benguet from the MPSA as Operator fortheir continued failure to implement the exploration and work program. The DENR in aNovember 23, 2009 order declared NADECOR the sole operator on the MPSA for the termof a renewed two year exploration period. The order was primarily based on a detailed reportcompleted September 30, 2009 by the Region 11 MGB which reviewed in detail the workaccomplished on the King-king tenement area. The November order was substantiated inJanuary 2009 when the Secretary of the DENR issued a finding sustaining the Order after aRequest for Reconsideration was submitted by Benguet rebutting the November Order. OnApril 29, 2010, the Office of the President issued a Final and Executory Order Sustaining theNovember Order.Technical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  26. 26. King-king Copper-Gold Project 20Mindanao, PhilippinesOctober 2010 Figure 4-2. Mining Tenement BoundaryTechnical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  27. 27. King-king Copper-Gold Project 21Mindanao, PhilippinesOctober 2010A negotiated settlement heads of terms agreement was reached between Benguet and StratoInternational Holdings, Ltd., of which RMMI has 50 percent ownership and NADECOR has50 percent ownership, in July 2010 wherein Benguet would transfer their interest, if any, inthe Operating Agreement, MPSA, and surrounding claims to Strato in exchange for a cashpayment of $25 million USD, scheduled in several payments over 7 years and the surrenderof approximately 49% of the outstanding secured debt of Benguet, which has been securedunder contract by Strato. The surrender of the debt, under the agreement, provides for acredit to the settlement payments of approximately $8 million USD. This agreement iscurrently in the due diligence phase prior to final agreement. .NADECOR and Russell Mining and Minerals Inc. (RMMI) signed an exclusive Letter ofIntent in April 2010 and an amended agreement in July 2010 to develop the project under aJV arrangement. Under the agreement, RMMI will undertake the exploration and workprograms, feasibility studies and baseline studies for preparing an EIA, DMPF and abankable feasibility report as well as the funding of such efforts. In return for such funding,RMMI would earn in a 60% interest in the planned JV. In March of 2010 theaforementioned LOI was replaced with a Memorandum of Understanding betweenNADECOR and St. Augustine Mining Ltd. (SAML), a subsidiary of RMMI, which providedfor the terms of the LOI as well as emplacing a Preferred Share Investment Agreementwherein SAML could invest up to $30 million USD prior to the acquiring of clear title to theMPSA and conclusion of a Joint Venture Agreement. RMMI retains the right to assign thedevelopment of the King-king project to an affiliated entity under the MOU.Ratel Gold Limited (Ratel) and RMMI have agreed to complete a Share ExchangeAgreement wherein Ratel will gain 100 percent control of SAML and RMMI will becompensated in Ratel equity. Additionally, as part of the transaction, Ratel will acquireRMMI’s 50 percent ownership of Strato.Fees relative to the King-king mineral property and the Operator, NADECOR, have beenpaid. The mining occupation fees for King-king MPSA No. 009-92-XI were paid byNADECOR on February 9, 2010 for the period of May 27, 2008 – May 26, 2010, see exhibit1 in Appendix 2. The fees for 2011 are due in February 2011. The performance bond for theapproved exploration and environmental work programs for the next two years beginningMay 2010 for the MPSA was paid on June 11, 2010; see Exhibit 2, also in Appendix 2. Allland and mineral exploration fees are in order for the King-king MPSA in regards to thecurrent property Operator and claim owner NADECOR.A qualified person expert opinion letter is attached (Exhibit 3, Appendix 2) regarding theclaims and land status. There are no other private entities or corporations, other thanNADECOR, with a claim of possession over the said tenement area. This is evidenced fromthe fact there are no records of taxes being paid to Compostela Valley Province on this landby others. MPSA 009-92-XI awarded to NADECOR on May 27, 1992, defines theownership of the surface rights covering the lands within the 1,656 hectares rests with thegovernment of the Republic of the Philippines. NADECOR and the government have solecontrol over this land and its development into a mineral producing mine and mill. RMMIand NADECOR have an agreement to develop the property together. Based on thisTechnical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  28. 28. King-king Copper-Gold Project 22Mindanao, PhilippinesOctober 2010discussion, it appears that Benguet does not have any back-in rights to the property, once afinal agreement, as described above, is reached.With respect to the tenement boundaries, the known King-king mineralized areas are locatedon the south side of the tenement, as shown in Figure 4-3. This figure also shows somecommonly referenced deposit area names. There has not been any commercial scaledevelopment of the deposit, so there are not any significant waste deposits or tailings pondson the property. Small scale mining, however, has resulted in numerous small pits, wastedeposits, spent ore piles, and plants within the tenement area. These are shown in severalphotographs in Section 18.Benguet developed some underground workings for sampling and testing the King-king ores.These are limited in scale and occur in the main deposit area in the south.Several buildings from Echo Bay’s tenure in 1997 remain at the project site, but these are indisrepair. These buildings are located in the south east area of known mineralization and areapproximately 50 meters outside the currently designed open pit perimeter.The King-king River is the major geographical feature of the mineral property area. Ittransects the currently designed open pit approximately 100 meters from the western open pitperimeter. Figure 4-3. Major Deposit Areas With Respect to Tenement BoundaryTechnical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  29. 29. King-king Copper-Gold Project 23Mindanao, PhilippinesOctober 20104.3 Agreements and EncumbrancesOwners of mining claims for land to be mined are permitted royalties in accord with theiroperating agreement. The Memorandum of Understanding between NADECOR and SAMLprovides that NADECOR fund their agreed upon portion of project costs and retain 40%ownership, after Bankable Feasibility or to take a 3.5% royalty subject to a sliding scalebased on the price of copper, and adjusted annually to the commodity price index.The Philippines Government takes an excise tax on metallic minerals. This excise tax is setby Section 151 (A) (3) of Republic Act (RA) No. 8424 or the National Internal RevenueCode of 1997 (1997 Tax Code), as amended by RA No. 9337 effective July 1, 2005. TheCode states that excise tax on metallic minerals would be “…based on the actual marketvalue of the gross output thereof at the time of removal,…in agreement with the followingschedule (for the King-king Gold-Copper Project): Gold and copper, two percent (2%).”To calculate the tax base, no deductions are allowed for mining, milling, refining,transporting, handling, marketing and other expenses. If the minerals are sold or consignedoverseas, costs of sea freight and insurance are deductible.The King-king mineral property is accessed via the Buko-buko sa Anay-Lawaan dirt road.Along this road outside the mineral property are 19 landowners that NADECOR has variousrights of way agreements with. Renewal of these rights of way is not a hindrance to thestatus of MPSA 009-92-XI as covered by law. The aforementioned Exhibit 3 describes indetail the law surrounding this matter. In summary, the mining rights holder will not beprevented from access to the mineral property and conducting mining operations as long asproperty damaged as a consequence of such access and mining operations is satisfactorilycompensated for. Again, as in the work programs mentioned above, a bond must be postedwith the regional Mines and Geosciences Bureau to guarantee the compensation.There is an annual mining occupation fee of about 200 Philippine Pesos per hectare per yearthat is paid to the province.RMMI through its subsidiary, St. Augustine Mining Ltd. (SAML), has an option earn-in 60%equity interest in the King-king project Joint Venture. This earn-in is defined by aMemorandum of Understanding (MOU) signed in April 2010 by RMMI, SAML andNADECOR. RMMI paid $400,000 to NADECOR for exclusivity to enter into the MOU inNovember 2009. SAML will pay NADECOR an additional $7.1 Million in two phasedpayments toward the earn-in. The entire $7.5 Million gives SAML 6% earn-in. SAML hascommitted to spend $43.5 Million dollars toward completion of a Bankable Feasibility Studyfor the project. Completion of the study earns SAML 45% earn-in of the total project.SAML has made an additional commitment to spend a minimum of $32 Million or acalculated amount based on planned tonnage throughput, as determined in the plannedfeasibility study, in development capital. The calculated premium expenditure will be 0.457X Planned Tonnage (Estimated at 100,000 tpd) X 1000 or 5% of Capital Cost, whichever isless. These expenditures earn SAML the additional 9% needed for a 60% total earn-in. Anyover allocated variance between the amount spent toward BFS and the amount committedTechnical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  30. 30. King-king Copper-Gold Project 24Mindanao, PhilippinesOctober 2010pays NADECOR first and the balance will be credited toward the development capitalcommitment at 50%.Ratel Gold Limited (Ratel) and RMMI have agreed to complete a Share ExchangeAgreement wherein Ratel will gain 100 percent control of SAML and RMMI will becompensated in Ratel equity. Additionally, as part of the transaction, Ratel will acquireRMMI’s 50 percent ownership of Strato.4.4 Other Mineral and Mining Activities outside the Property BoundariesThere are small scale gold mining operations in the adjacent mining tenements next to theKing-king tenements. These tenements are called the SARC claims and the PMC claims.Nadecor is in the process of acquiring these claims for use as possible sites for King-kingfacilities.There are no existing tailing ponds or waste deposits of note outside (or inside) the King-kingMineral Property Area. The most notable feature from small scale mining in the King-kingand adjacent tenements is the sediment deposition visible along the King-king River banks.The King-king River is the most notable natural feature outside the property area.4.5 Environmental ObligationsMineral Production Sharing Agreements (MPSA) are decided or entered into on thestipulation that the mining activities are managed in a technically, financially, socially,culturally and environmentally conscientious method. The King-king Gold-Copper Projecthas an approved MPSA that was most recently amended in 2002 as already mentioned above.The Department of Environment and Natural Resources (DENR) requires an EnvironmentalCompliance Certificate (ECC) for any mining activity except when an exploration permit hasbeen issued or through the exploration period of an MPSA. The ECC is issued by the DENRbased on an Environmental Impact Assessment (EIA) process, in which an EnvironmentalImpact Statement (EIS) is prepared by the contractor in agreement with procedures under theECC system. A completed biological profile of the proposed mining area is required as partof these procedures.NADECOR/Ratel will also complete an International Social and Environmental ImpactAssessment (I-SEIA), based on IFC Performance Standards (PS), the Equator Principles(EP), and other international guidelines. The IFC PS and EP form the de facto standardsapplied to many major operations seeking investments and guarantees from multilateral,bilateral and commercial financial institutions worldwide. The I-SEIA will serve as acomplementary document to the National EIS to be presented to the Government of thePhilippines for project approval.Technical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  31. 31. King-king Copper-Gold Project 25Mindanao, PhilippinesOctober 2010The Environmental Compliance Certificate is required for mining properties with an area of1,548 hectares or more and, a project which includes open-pit mining, processing facilities,coal fired power plants, land based tailing management systems, well fields, port facilities forstoring and loading concentrates and off-loading coal, infrastructure and other supportfacilities.Once the ECC is approved, NADECOR/Ratel will be required to submit for approval of anEnvironmental Protection and Enhancement Program (EPEP) for the life of the mine. Oncethe plan is approved, it will have to be implemented. Annual updates to this plan arerequired.Once the ECC is approved, NADECOR/Ratel will also be required to apply for approval of aSocial Development and Management Plan (SDMP) for the life of the mine. Once the plan isapproved, it will have to be executed.NADECOR/Ratel is required to create a Mine Environment Executive Office within theirorganization which collects the assets needed to put into operation the environmentalmanagement programs and to handle the contractor’s environmental concerns. Any miningpractice not in agreement with anti-pollution laws and regulations will be required to beremedied; and, failure to do so is also a case for the suspension of mining operations if thereis impending hazard to the environment.Development of a modern large-scale mining operation at King-king will improve the currentbaseline environmental and social conditions within and outside the mineral property area.More than two decades of illegal small-scale miner activity has environmentally degraded themineral property area and downstream areas along the King-king River, particularly withregards to sediments and E coli bacteria counts. Mine development will lead to gradualcessation of small mining activities over a few years and subsequent departure of the smallminers and associated people, thus reducing E coli counts. Mine development will bringsediment control structures to the streams and the King-king River in the mine area that willmuch reduce downstream sediment flow in the waterways. Development will increaseemployment, income and taxes in the municipality that will lead to improvements in socialconditions in the municipality and surrounding areas. See Section 18.3 for more details.4.6 Permit StatusThe MPSA document and the approved Work Plans (exploration and environmental) allowwork to be carried out that is necessary to obtain an approved DMPF (Declaration of MineProject Feasibility) and a ECC (Environmental Compliance Certificate), which allow thefuture development of the mine. This work would include work proposed for the property,i.e. to drill, sample, transport, survey, baseline studies, etc.In the Philippine Constitution, minerals and mineral lands belong to the country. Privateindividuals can embark on exploration, development and utilization of the mineral resourcesunder four modes of mineral agreements with the government: Mineral Production SharingTechnical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  32. 32. King-king Copper-Gold Project 26Mindanao, PhilippinesOctober 2010Agreement (MPSA), Co-Production, Joint Venture and Financial or Technical AssistanceAgreement (FTAA). The first three modes of agreement are available only to Filipinocitizens or corporations where at least 60 per cent of the capital is owned by Filipinos. Thelast mode is available to 100 per cent foreign owned corporations.The Philippine Mining Act of 1995 is the chief law governing mineral lands in thePhilippines. In its transitory provisions, existing mining rights (i.e. leases and MPSA’s)issued under prior mining laws shall remain valid, shall not be impaired and shall berecognized by the government. The MPSA covering the King-king project falls under thisprovision of the mining law, having been issued in 1992 and amended in 2002.The Mineral Production Sharing Agreement (MPSA) has been the most common form in use.The features of this method are as follows:  The contractor has the exclusive right to conduct exploration, development and operation in the contract area.  The MPSA has a term of 25 years, renewable for another 25 years.  The contractor is required to carry out activities according to an approved work program (NADECOR/RMMI have an approved work plan and are executing it) and commit expenditure for the environment, the community and the development of geo- sciencesThe financial requirement includes the payment of occupation fees (PhP100/hectare) andexcise tax at 2 per cent of gross revenue.Prior to forming an MOU with RMMI, NADECOR was granted one of the major criticalagreements, permits, licenses and certificates vital in its mining operations. This was theMineral Production Sharing Agreement No. 009-92-XI, which was approved by thegovernment on May 27, 1992 (MPSA) 095-97-V, and amended on December 11, 2002.NADECOR/RMMI have entered into agreements to acquire/control adjacent claimssurrounding the King-king claims for the purpose of managing the valueless rock frommining operations to protect the environment. They also have gained control of 4,415hectares of unclaimed land in the lowlands west of King-king for development of a tailingmanagement facility.Other primary Permits of note required for operating the mine and process facilities are listedin the table below. Many additional permits are required to bring the mine to production.See Section 18.3 for more details.Technical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  33. 33. King-king Copper-Gold Project 27Mindanao, PhilippinesOctober 2010 Table 4-1 King-king Permits Permit Date Issued / Submitted Term Environmental Compliance Certificate After EIS Annual renewal Environmental Protection and Enhancement Program After ECC approved Permit to Construct Tailings Pond After design Permit to Operate Tailings Pond After construction Permit to Operate Power Plant After construction Permit to Operate Oil – Water Separator After construction Permit to Operate a Waste Disposal Facility (Landfill) Use for Industrial Water – National Water Resources Board 1 Year Wells for drinking Water – National Water Resources Board 1 Year Permit to Cut Trees Monthly renewalTechnical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  34. 34. King-king Copper-Gold Project 28Mindanao, PhilippinesOctober 20105.0 Accessibility, Climate, Local Resources, Infrastructure and Physiography5.1 AccessThe project area is approximately 35 aerial kilometers east-northeast of Davao City, andsome 1,000 aerial km southeast of Manila. Locally, it is about 10 aerial km northeast of theMunicipality of Pantukan, Province of Compostela Valley. Pantukan is about 92km by roadfrom Davao City via the well paved Tagum City–Mati National Road. From Pantukan townproper, the project can be reached through the 18km Buko-buko sa Anay-Lawaan dirt roadwhich as of the date of this report can be negotiated in 35-45 minutes using motorcycles orapproximately three hours via conventional four-wheel drive vehicles.5.2 ClimateThe climate is tropical (Type I-B) with no pronounced wet and dry seasons. Maximumrainfall usually comes between the months of June and December. Daytime temperaturesrange from 18 to 35 degrees Celsius and the daily average is about 27oC (81oF). Rainfallranges from 2,000 to 3,200 millimeters per year within the mountains and 1,800 to 2,000millimeters per year along the coastal plain. Normal precipitation is 2,100mm per year andthe average daily relative humidity is 81%.Typhoons are extremely rare but torrential rains and subsequent flash floods are notuncommon.There are no climatic conditions that should cause the project great operational difficulty.The greatest climatic issue will be managing storm waters that will result from excessiverainfall at intermittent times during the life of the project. However, this is a commonoperating issue at many tropical mine sites and should be manageable with proper controlsand planning.5.3 Local ResourcesThe local unemployment is approximately 7% and underemployment is 22%. In 2009 thelocal Pantukan Municipal government sent a letter to the Department of Environmental andNatural Resources requesting the King-king Project be developed as swiftly as possible. Thelocal community is favorable to the project.Primary employment in the region is on plantations growing bananas or coconuts.Secondary jobs exist for a limited number of workers in the several small scale mines in themountains northeast of Pantukan City.Technical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  35. 35. King-king Copper-Gold Project 29Mindanao, PhilippinesOctober 2010According to the National Statistics Office of the Philippines, the 2007 populations ofcommunities near the King-king Project were as follows: Population Pantukan Municipality 69,656 Magnaga 7,743 Napnapan 9,983 King-king 21,444 Davao City 1,366,1535.4 InfrastructureSome of the basic infrastructure is in-place for exploration and development of the King-kingdeposit. A paved highway from Davao City runs 10 kilometers southwest of the project. Theproject mine area in the 250- to 950-meter elevation range can be reached via the previouslymentioned 18km Buko-buko sa Anay-Lawaan dirt road, and with minor improvements it canbe made passable by large four-wheel drive vehicles such as drilling rigs and supply, fuel andwater trucks. Planned low-land facilities, including the tailings area, mill site, port facility,and power plant location can be accessed via local area roads.Water for exploration has been taken from low pressure artesian wells, including two wellsdeveloped from exploration diamond drill holes located on the southern side of the deposit orfrom nearby small surface drainage that runs through the southern and northern ends of theproject area. Potential sources for water for mining and processing include wells planned tobe situated in the alluvium deposits located southwest of the mineral area, or the King-kingRiver.Power availability is currently too limited in Mindanao to assume that grid-supplied powerwill be available for operation of King-king. Construction of a 120 MW coal fired powerplant is envisioned for the project.Anticipated concentrate volumes and requirements for coal import necessitate theconstruction of a dedicated port facility. The only port facility in the Pantuken area consistsof a concrete barge landing ramp, which should be available to handle barges from theexisting deep water port facilities at Davao and Tagum for transport of inbound materials forconstruction and early mine operation.Currently there is a drill core storage facility in Pantukan (approximately 1,000 squaremeters). Expansion of this facility onto nearby grounds or complete relocation to anotherarea in Pantukan City is possible. Several buildings from Echo Bay’s tenure in 1997 remainat the project site, but these are in disrepair.Technical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  36. 36. King-king Copper-Gold Project 30Mindanao, PhilippinesOctober 20105.5 PhysiographyThe coastal plain extends a length of 6 kilometers from Davao Gulf to the base of themountains where the King-king project is located. The majority of the population lives alongthe coastal plain with significantly lower population densities in the mountains. Figure 5-1below shows the topography of the local area.The topography in the immediate project area is steep and rugged with elevations rangingfrom 260-950 meters above mean sea level (AMSL) and averaging 800 meters AMSL. Theporphyry copper-gold mineralization outcrops between 400 m and 700 m elevations. Theterrain gradually transitions through moderately rugged to rolling moving westward towardthe coastline. The dominant drainage pattern in the area is dendritic. The property itself isdrained by the Casagumayan and Lumanggang creeks, tributaries of the King-king Riverwhich enters the Davao Gulf at Pantukan.The project area is covered generally by sparse tropical rainforest mostly left over from pastcommercial logging operations. Old growth trees are mostly gone, and large areas of thepreviously timbered slopes have been cleared, cultivated and planted with corn and othercrops by local mountain tribes and lowland settlers. In the foothills toward Davao Gulf, whatused to be forest-covered slopes are now dominated by cogon grass. Vegetables and fruit-bearing trees are grown in some places but these are limited and concentrated in localized flat orrolling terrain. Figure 5-1. PhysiographyTechnical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.
  37. 37. King-king Copper-Gold Project 31Mindanao, PhilippinesOctober 20105.6 Mining Surface Rights and Mining PersonnelThe approved 1992 MPSA, amended in 2002, that NADECOR is a party to as the tenementholder and as the operator, gives NADECOR exclusive right to develop the surface andunderground mineral resources at King-king.Operations and maintenance staffing would be sourced from Pantukan and neighboringmunicipalities, the province of Compostela Valley, from the island of Mindanao, from thePhilippines and from outside of the Philippines. The municipality of Pantukan is home to60,000 people and approximately 22% are underemployed in this area and in the province.There is a large craft trained work force to draw from in the Davao area. The population ofDavao is 1.4 million people. Thus, there is a sizable work force to draw from near the minesite.6.0 HistoryThe project history can be briefly summarized as follows;1966-1968 NADECOR discovers the King-king mineralization anomaly;1969-1972 Mitsubishi Mining Corporation drilled 54 surface diamond drill holes;1981 NADECOR entered into an operating agreement with Benguet Corporation (Benguet);1981-1991 Litigation regarding ownership did not allow any activity within the project. In 1991 all legal issues were resolved in favor of NADECOR ownership of mineral claims;1991-1994 Benguet drilled 69 diamond core holes and 25 reverse circulation (RC) holes in addition to completing extensive surface and underground exploration. An in-house feasibility study was completed;1992 The Mineral Production Sharing Agreement (MPSA) was signed between NADECOR, Benguet and the Philippine Government;1995-1997 Echo Bay Mines, Inc. drilled approximately 128 holes (52,718 meters). All Echo Bay data were acquired by Kinross Gold, which waived its option to proceed with the King-king project;2005 NADECOR and Benguet applied for a conversion of the MPSA into a Financial Technical Assistance Agreement (FTAA) covering the porphyry area of the project;2008 NADECOR terminated the Operating Agreement and applied to the government to have Benguet removed from the MPSA and became sole owner of the King-king project;Technical Report / Form 43-101F1 INDEPENDENT MINING CONSULTANTS, INC.