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G A S A M I N I NG C O M P A N Y

G A S A M I N I NG C O M P A N Y

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G A S A M I N I NG C O M P A N Y

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  1. G A S A M I N I NG C O M P A N Y • GEOLOGICAL RECOGNITION REPORT • GASA MINING’S CONCESSIONS • SAMO ALTO • FEBRUARY 2012 OSCAR MELO RIQUELME Mining Civil Engineer, Universidad de Chile cellphone 09-4374747

  2. 1 RECORD • Attherequest of the Mining Society GASA a geological recognition was carried out to the mining labour of a group of four mining concessions in different development’s phases, they are: • *LA ESPERANZA • *NATALIA • *LA PROFESIA • *LA AGUSTINA • All of them are located in the small farm of Carrizal, Corral Quemado District, Commune Samo Alto, Region IV, distant between 30 and 45 km from the road linking with Ovalle and Samo Alto. • The objective of this recognition was to determine the mining expectations of each ones in order to project exploration future work . • 2 REGIONAL GEOLOGYCAL • The Carrizal district which are located all these concessions motive of this report consists of a somehow monotonous geological environment . • Themostlyextensionis covered by the formation called Estratos of La Totora Cretaceous age Totora (Ksvs1) consisting of a sequence route monoclinal cloaks NS with slight eastward and tuff breccia, sedimentary conglomerates and sandstones with fossil plant remains, calcareous sandstones and shales. Interrupt this formation hypabyssal intrusive bodies of dioritic to andesitic porphyry type medium size, up to 20 km2 • A notable feature of this affects tectonic formation, The Chape regional flaw running through north-south from Daniela mine area to the north. Near to the trace of this fault is located the reviewed mines in this study. OSCAR MELO RIQUELME Mining Civil Engineer, Universidad de Chile cellphone 09-4374747

  3. 3 WORK PERFOMED • On February 2nd we recognitioned the work of the concessions mentioned reviewing workings made​​, checking its location and raising relevant points using GPS. Mineralization were identified through magnifying glass, Host rocks, alterations in some cases and measured structures. This work was provided by generous discards previously made by bulldozer exposed all features mentioned. • 4 CONCLUSIONS 4.1 ESPERANZA MINE • Located in the geological environment for the porphyry intrusive andesitic-dioritic coarse grit hypabyssalapophysis whose flood the entire region dominated Cretaceous volcaniclastic sediments. By a discard conducted on site has shown the structure whose a flaw outcropping extends for about 300 m, the continuity should be checked and in the pit area shows mineralization at its orient side. The failure of attitude and heading subvertical NS doesn’t show mineralization itself but presumably it was the channel that allowed the silicified deposition solutions with copper to form disseminated input which extends for at least about 4 m to orient it. • Due to the reduced height of the pit were discovered copper oxidized minerals beneath the leached capping and only show signs notorious copper sulphidechalcocite species on the work floor. The above mentioned it confirms the mineralization indigenous nature and opens perspectives to the mine because it is a medium temperature hydrothermal phenomenon with argentiferous minerals proven subproduct and whose extension in depth can be importance. • A narrow seam parallel to the structure described extends a short distance from the former containing barite, be confirmed. OSCAR MELO RIQUELME Mining Civil Engineer, Universidad de Chile cellphone 09-4374747

  4. OSCAR MELO RIQUELME Mining Civil Engineer, Universidad de Chile cellphone 09-4374747

  5. 4.2 NATALIA MINE. • Located in a volcanic-sedimentary atmosphere of age Cretaceous constituted by a package monoclinal of direction general North and soft inclination toward the East, conglomerates, gritty, tufas and breaches Pyroclasticflows, well-known formation as Strata of La Totora. In the area oxidized countless copper manifestations of varied dimensions are known, mostly in the breaches and conglomerates and in smaller portion in the gritty ones that have given place to exploited deposits in the south sector of the district. • In Natalia’s case, located to the local road’s edge, was observed in the base of a shallow pit, one mineralized body with the gap as host rock, of near direction to the north, limited to the West for a flaw near direction to the N-S and inclined about 75 to the West. Considering such a flaw as a feeder of a hydrothermal process that deposited copper minerals in the rock until about 3 or 4 meters away from it, the existence of a probable mineral body of reduced run is postulated but with potential in depth. A magnifying eye was not possible to confirm the presence of sulfides were observed but presumably disseminations fine sulphide. • Calcite guides notorious are proportionate to the inclination of the flaw confirm this process but turn to this mineral proscribe the possibility of their benefit by acid leaching. OSCAR MELO RIQUELME Mining Civil Engineer, Universidad de Chile cellphone 09-4374747

  6. OSCAR MELO RIQUELME Mining Civil Engineer, Universidad de Chile cellphone 09-4374747

  7. OSCAR MELO RIQUELME Mining Civil Engineer, Universidad de Chile cellphone 09-4374747

  8. 5 RECOMMENDATIONS • 5.1ESPERANZA MINE • Check expectations at this mine resources are given by the probable existence of sulphides in depth and horizontal extent possible insinuated by the outcroppings. • As we have expressed repeatedly, the oxidized copper resources’ expectations in this area are limited due to their morphological characteristics and climatic conditions. • It’s recommended therefore investigate this situation by Induced Polarization geophysical method, before any exploration work of much greater cost and uncertain result, a method that checks for sulfides to much depth with an appreciable accuracy. In the area it is recommended that a minimum of 4 sections of 1000m extension separated 50 m apart and with electrode spacing of 50 m. • From positive results of this campaign should be evaluated conducting confirmation drilling or workings. 5.2 NATALIA MINE. • The characteristic of indigenous mineralization found in Natalia, makes it advisable to perform a geophysical recognition to determine the presence of sulfides in both depth and run. It is therefore recommended here also perform a minimum of 4 sections of 1000m extension 50 m apart from each other and with electrode separation of 50 m. OSCAR MELO RIQUELME Mining Civil Engineer, Universidad de Chile cellphone 09-4374747