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ANNEX“A”
CORPORATE SECRETARY’S
CERTIFICATION
Secretary's Certificate
The undersigned, being the duly elected and qualified Corporate Secretary of Filminera
Resources Corporation (the "Corporation"), a corporation duly organized and existing under
Philippine law, is authorized to certify, and hereby certifies on behalf of the Corporation, that:
1. Mr. Rolando Amores is the incumbent and duly elected President of the Corporation
to serve as such until his successor shall have been duly elected and qualified.
2. Under Section 4, Article V of the Corporation's By-Laws, Mr. Rolando Amores'
functions as President include:
xxx
c) [***H]av[ing] general supervision and management of the business
affairs and property of the corporation; f
xxx
g) [***P]repar[ing] such statements and reports of the corporation as
may be required of him by law;
h) [***R]epresent[ing] the corporation at all functions and proceedings;
i) . [***E]xecut[ing] on behalf of the corporation all contracts,
agreements and other instruments affecting the Interest of the corporation which
require the approval of the Board of Directors, except as otherwise directed by the
Board of Directors;
3. The foregoing statements are true and correct and in accordance with the records of
the Corporation.
APR 0 R ' GR
IN WITNESS WHEREOF, I have hereunto set may hana this_1 day of April 2005 at
Makati City.
MA. CHERELL L. DE CASTRO
REPUBLIC OF THE PHILIPPINES )
MAKATI CITY )S.S.
Before me, a notary public in and for the city named above, personally appeared:
Name Community Tax Place/ Date of Issue
Certificate No.
Ma. Cherell L. de Castro 14687461 Makati City
January 31, 2005
who is know to me to be the same person who presented the foregoing instrument and signed the
instrument in my presence, and who took an oath before me as to such instrument.
0 5 dafof April 2005.
Witness my hand and se
EMMANUEL C. PARAS
Appointmert No. u”ti! Ooc 31. 2006
Roll of Aft/. No. V102
Doc. No. PTR No. 9442945C 01/CK/2005 Makati City
Page No. /c/ : IBP No. 630362 01/0112005 Makati Chapter
SSHG Law Centre, 105 Paseo de Roxas
Book No. /3 7: Makati City, 1226 Metro Manila
Qompc nf 700^ DUilmwInne
ANNEX"B"
Location Map/Sketch Plan
on
1:50,000 scale NAMRIA Map
TECHNICAL DESCRIPTION
CORNER LATITUDE LONGITUDE
1 12 ° 28 1 29.9 " 123 o 23 1 0.1 "
12 ° o
2 29 ’ 29.9 " 123 23 ■ 0.0 "
3 12 ° 30 ‘ 29.9 " 123 o 22 1 59.9 "
4 12 ° 30 1 39.1 ” 123 o 23 ’ 3.1 "
5 12 ° 30 1 43.2 " 123 o 23 1 4.4 "
12 ° 30 ' 49.8 " 123 ° 23 ’ 14.6 "
6
7 12 ° 30 ’ 50.6 " 123 o 23 ’ 24.5 "
8 12 ° 30 1 51.1 " 123 o 23 ’ 29.9 "
9 12 0 30 ’ 43.0 ” 123 o 23 ’ 29.9 "
12 ° 30 ’ 44.7 " 123 o 23 1 23.8 "
10
11 12 ° 30 1 40.1 " 123 o 23 ’ 15.1 "
12 12 ° 30 ’ 31.5 " 123 o 23 ’ 19.8 "
13 12 ° 30 ’ 29.9 " 123 o 23 ’ 16.9 "
12 ° o
14 30 1 29.9 " 123 22 1 59.9 "
15 12 ° 29 ’ 29.9 " 123 o 23 1 0.0 "
16 12 ° 29 1 29.9 " 123 o 23 ‘ 12.2 "
17 12 ° 29 ’ 27.2 " 123 o 23 ’ 7.5 "
12 ° 29 1 18.8 " 123 o 23 ’ 12.5 "
18
19 12 ° 29 1 13.9 " 123 o 23 1 3.9 "
20 12 ° 29 1 5.4 " 123 o 23 1 8.9 "
12 ° o
21 29 ’ 3.1 ” 123 23 1 4.5 "
22 12 ° 28 ’ 55.6 " 123 0 23 ’ 10.7 "
23 12 ° 28 1 57.1 H 123 o 23 1 13.7 "
24 12 ° 29 1 5.7 " 123 0 23 ’ 8.9 "
12 ° 0
25 28 1 49.6 " 123 23 ’ 18.4 "
26 12 ° 28 ‘ 51.9 " 123 o 23 ' 21.7 "
27 12 ° 28 1 53.0 " 123 o 23 ' 21.1 "
28 12 ° 28 1 54.4 " 123 o 23 ’ 23.0 "
29 53.2 " 123 o 23 ' 23.7 "
12 0 28 1
30 12 ° 28 1 57.9 " 123 o 23 ' 25.0 "
31 12 ° 29 ’ 10.6 " 123 o 23 ' 17.5 "
32 12 ° 29 1 15.5 " 123 o 23 ' 26.1 "
12 ° o
33 29 ’ 23.9 " 123 23 ' 21.1 "
34 12 ° 29 ’ 28.8 " 123 o 23 ' 29.7 "
35 12 ° 29 ’ 30.2 " 123 o 23 ' 28.9 "
12 ° o
36 29 1 30.2 " 123 23 ' 30.0 "
37 12 ° 29 1 28.5 " 123 o 23 ' 30.0 "
38 12 ° 29 1 28.8 " 123 o 23 ' 29.7 "
39 12 ° 29 1 21.9 " 123 o 23 ' 22.6 "
40 12 ° 29 ’ 15.0 " 123 o 23 ' 29.7 "
41 12 ° 29 1 15.4 " 123 o 23 ' 30.0 "
42 12 ° 29 ’ 8.8 " 123 o 23 1 30.0 "
43 12 ° 29 ’ 6.0 " 123 ° 23 ' 25.2 "
44 12 ° 29 1 0.2 " 123 o 23 ' 27.4 "
12 ° o
45 28 1 59.7 " 123 23 ' 27.6 "
46 12 0 28 ’ 57.9 " 123 o 23 ' 24.9 "
47 12 ° 28 1 53.2 " 123 o 23 ' 23.7 "
48 12 ° 28 1 51.9 " 123 o 23 ' 21.7 "
12 ° 28 ’ o
49 49.6 " 123 23 ' 18.4 "
50 12 0 28 1 47.7 " 123 o 23 ’ 15.5 "
51 12 ° 28 1 39.7 " 123 o 23 ' 21.2 "
12 ° 28 * o
52 45.2 " 123 23 ' 29.4 "
53 12 ° 28 1 44.2 " 123 o 23 ' 30.1 "
54 12 ° 28 1 30.2 " 123 o 23 ' 30.1 "
Tie Line from Triangulation Station Bagadila.1991 - 51 Aroroy. Masbate
_S 56-00W; 1,713.51 Meters to Corner No.1_
iij W*1 4
12°30' 1- mua sand
123°12'
Users noung errors on tnis map are
-requested to notify the National Mapping
and Resource Information Authority (NAMRIA),
Fort Andres Bonifacio, Makati, Metro Manila.
i rr>rMn
537
558 469
452
240 mud
«*». PLAN
OF
55.5 APPLICATION FOR MINERAL AGREE
AS PREPARED FOR
FI L MIN ERA RESOURCES CORPORA
SITUATED IN THE
BARRIOS OF TALABA-AN, PURO & BAN
MUNICIPALITY OF AROROY
PROVINCE OF MASBATE
Containing an Area of 126.1442 Hectares
Prepared by:
ANCISCO IX DE GUZMAN
GEODETIC ENGINEER
Reg. Cert No. 0427 10-25-'
PTR NO. 8497312 01- 02 -
205
mud
PM
ANNEX“C”
EXPLORATION WORK
PROGRAM
2
M< iU IOKV1 \„ >J
Republic of the Philippines
Department of Environment and Natural Resources
MINES AND GEOSCIENCES BUREAU
North Avenue, Diliman, Quezon City
EXPLORATION WORK PROGRAM
l 0 Name and Address of Company/Proponent:
FILMINERA Resources Corporation
Main Office: 311' Floor, Corinthian Plaza Condominium B|
121 Paseo de Roxas, Legazpi Village. Makati Q j
Philippines ^
Telephone No. (02) 811 3451 (Connecting All (y
Facsimile No. (02) 8113463 epts.)
Email address:
Minesite : Barangay Puro, Arorov, Masbate, 5414 Philipplnes
Telephone No. (02) 845 0714 (Connecting All Depts.)
Facsimile No. (02) 845 0714
Email address:
Location of Project (specify geographic coordinates):
The gold-silver prospect is located at Barangays Talaba-an.
Bangon and Puro, within the Municipality of Arorov, Province ol
Masbate, Masbate Island, Philippines.
Tlie area boundary is at 12"28,30” to 12o30’5r’ latitude and at
123“23,00” to 123<>23,30‘,‘> longitude.
TECH Y/C 1I. DESCRIP IIOSIS
CO RISER LA TITUDE LOSIGITCDE
1 I2°28'29.9” 12 3°2 3.0.1"
1 12°29'29.9" 12 3°2 3.0.0"
3 12°3I)'29.9" 12 3°22 59.9"
4 I2°3U '39. / ” I23°23 3.1 "
5 12°3U '43.2 ” 123°23'4.4"
6 12°30 49.8" I23°23 14.6 "
~ I2°30 '50.6 " I23°23 '24.5"
8 12°30'51.1 " I23°23 '29.9"
9 12°30'43.0" 123°23 29.9"
III I2°30'44.7" 123°23 23.8 "
II I2030'40.l" I23°23 15.1 "
12 I2°30 '3I.5 " I23°23 19.8"
13 12°30’29.9" I23°23 16.9"
14 12°30'29.9" I23°22 '59.9"
13 I2°29 29.9 " 12 3°23 0.0 "
16 12°29 29.9" 12 3° 23 12.2"
17 /2°29 '27.2 ” 123°23 '7.5 "
IS I2°29 '18.8" I23°23 '12.5 "
19 12°29 '13.9 " I23°23 '3.9 "
21) 12°29 '5.4 " I23°23 8.9 "
21 I2°29 3.l"
Ml ili I oim \n. 05-4
33 12°28 '57.1" I23°23 ’13.7"
24 I2°29'5.7" 123°23 8.9"
25 12°28 '48.6" I23°23 '18.4 "
26 I2°28’5I.9" I23°23 ’21.7"
1 7 I2°28'53.0" 123°23 '21.1"
28 !2°28 ’54.4" 123°23 23.0 "
29 12°28 '53.2 " 123°23 '23.7"
30 12°28 '57.9" 123°23 25.0"
31 I2°29'I0.6" I23°23 7 7.5 "
32 I2°29'I5.5" 123°23 26.1 "
33 12°29'23.9” I23°23 '21.1"
34 12°29'28.8" I23°23 29.7"
35 I2°29 '30.2 " 123°23 28.9"
36 I2°29 '30.2 " 123°23 30.0 "
37 I2°29 '28.5 " 123°23 30.0"
38 I2°29 '28.8 ” 123°23 29.7"
39 I2°29 21.9 " 12 3°23 22.6 "
40 I2°29 '15.0 " I23°23 29. 7 "
41 I2°29 '15.4 " 123°23 30.0"
42 I2°29 ’8.8 " I23°23 30.0"
43 I2°29 6.0" 123°23 25.2"
44 12° 29 '0.2" 123°23 27.4"
45 I2°28'59.7" I23°23 27.6"
46 12°28 ’57.9" 123°23 24.9"
47 I2°28 '53.2 " 123°23 23.7"
48 12°28 51.9" 123°23 21.7"
49 12c28 ’49.6" I23°23 '18.4 "
50 12°28 '47.7" I23°23 ’15.5 "
51 12°28 '39.7" 123°23 21.2"
52 / 2 °2 8 '45.2" 123°23.29.4 "
53 12 °28 '44.2" 123°23 30.1 "
54 12°28 '30.2 " 123°23 30.1"
Tie Line from Triangulation Station Bagadila. 1991 - 5/ Aroroy, Masbate
S 56 -00 IT'. 1.713.51 Meters to Corner No. I.
3.0 Area or size of coverage (hectares):
The total area of this prospect covers 126.1442 hectares
encompassing three (3) barangays in the Municipality of Aroroy,
Province of Masbate.
4.0 Project Area Description :
4.1 Terrain/Physiography-
The prospect area is characterized by moderate to rolling
topography with conspicuous domal/conical promontories, flanked by
relatively flat terrain. Rugged topography with sharp ridges is noted
in the prospect area.
4.2 Accessibility-
From Manila, the area is accessible by air transportation to
Masbate City, Masbate Province. Daily regular flights are available
and air travel time is about one (1) hour and twenty (20) minutes.
\K ili l orm Nu 05-4
4.3 Drainage System/s -
o j
The prospect area is bounded by the Panique River in the
northernmost portion and by the Lanang River at the central portion
of the exploration area. Both rivers drained westward and towards
the Port Barrera Cove.
4.4 Vegetation -
The area lias limited forest trees. Cogon grass flourish and
coconut trees abound with wild ipil-ipil trees. Wild bananas are
thriving best along creeks.
The area is generally covered with cogon grass and shrubs
suited for grazing. Mangroves and swampy areas are found in the
northwestern portion of the mining claims along the coastal areas.
The hills and valleys are practically barren except for corn farmlands
and vegetative crops, which grow in clusters.
4.5 Land Use -
The proposed areas are classified as mineral lands. The
surrounding areas are suited for grazing hence, the presence of mans
cattle ranches. Although an estimated 1/10 of its total land area is flat
and suitable for agricultural/vegetative crops, the residents prefer the
quick and more lucrative gold panning as their means of livelihood.
5.0 Description of Exploration Program
5.1 Research Work Year 1
5.1.1 Survey of previous work/s on the area -
5.1.1. J nature or type of study or undertaking - a geologist and
geologic aide will search and review all the stored
ATLAS and pre-war maps and data and look for all the
geological information on the applied area.
5.1.1.2 duration - One (1) month
5.1.1.3 coverage - Applied area and its adjacent areas
5.1.1.4 proponent - Filminera Resources Corporation (FIIC)
5.1.1.5 results or conclusions arrived at - Old mine workings
plotted on the applied area including
mineralized/altered zones adjacent or surrounding the
area.
5.1.2 Data compilation/collation
Research on the available data and maps of Atlas Consolidated
Mining and Development Corporation and pre-war data which
covers the southern and northern part of the applied area will he
\l( iH l-orm \u 1)5-4
5.1.2.1 various thematic maps covering the target area - old
tenement map, geologic map showing Atlas and pre-war
geologic maps.
5.1.2.5 estimated cost - Php 100,000
Reconnaissance/Regional Survey or Studies Year I
5.2. / Remote sensing studies
5.2.1.1 nature or type of survey or study (e.g. airphoto
interpretation. SAR, aeromagnetics, etc)
- Color Aerial Photography Production & Interpretation
Aerial photography by GEO-SURVEYS and MAPPING Inc.
(GSM I. a Metro Manila based Geomatics company.
GSMI upon implementation of the activity will fly-in its company
owned CESSNA plane equipped with LEICA RC30 large format
camera and other peri plurals namely: GPS Plight Navigation
System, a GYRO, FLYKIN GPS data processing software and a
PC for data acquisition and recording.
GSMI plane, while onsite will utilize the project airfield for the
duration of the Aerial Survey. Personnels involved in the activity
are six (6) from GSMI (pilot, co-pilot, aircraft mechanic, camera
technician and 2 surveyors). GSMI field surveyors will be
accompanied by 4 Filminera personnels assisting GSMI to stake
out their ground survey photo control points.
Recorded flight data gathered during the survey will be bought
by GSMI to own photo laboratory to generate the orthophoto
mosaics. Two (2) hardcopies of the orthophoto mosaics plotted in
(1:10,000m scale) glossy paper and digital data of the images in
CD recordable disk delivered to Filminera Resources
Corporation will represent he final output of this activity.
The advantages of color photography in geologic work are such
that it replaces the costly field data collection.
It is used by geologist in a variety of applications including
mapping to delineate zones of hydrothermal alteration, trench of
vein structures, trench of fault structures and in the
interpretation of various geomorphic features useful in locating
the natural resources.
Aerial photos provide interpretation for spatial data that can be
inputted in layers in a GIS for area assessments, i.e.: land use.
environment monitoring, mine planning etc.
The production of color aerial photographs will be conducted by
Geo-Surveys & Mapping, Inc. and the identification and
interpretation of geologic and other features will be done by the
FRC geologists including ground verification.
The advantages of color photography in geologic work are easy
\H ili I otm No 05~J
by human eye. This gives an entire new dimension to
photography and is a step toward having a “real" image of the
terrain. Still, the procedures and tools of color photogeology and
color photogrammetry are essentially the same as those
mentioned for black-and-white photography.
Geologists can use color photography to delineate zones of
hydrothermal alteration, trend of vein structures, trend of fault
structures and wonder how much information they missed.
Other information that can be identified and delineated from the
color photograph are the vegetative cover, drainage and other
water bodies, old mine workings/structures and residential areas.
5.2.1.2 duration - Five (5) months to undertake, i.e.: Two (2)
weeks preparation, two (2) weeks commencement of
aerial photography, two (2) months delivery of output,
and, two (2) months geo interpretation.
5.2.1.3 proponent (companies or groups which will undertake the
survey or study)
Geo-Surveys & Mapping, Inc.
FRC geologists
5.2.1.4 coverage (hectares) - 126.1 Hectares
5.2.1.5 total or estimated cost - Php400,000.00
Php200,000.00 (Php90,000 for images and Phpl 10,000
for the Contour Map.)
Php200,000 (2 geologists and 2 geo aides)
5.2.1.6 main output (maps, reports, etc)
Ortho Mosaic images of ground and Contour Map
at 1:10,000 Scale.
Geo-interpreted map with other features.
5.3 Semi-detailed survey or follow-up studies Year l
5.3.1 Geological mapping/alteration studies
A fter the interpretation of the color aerial photographs, follow¬
up or semi-detailed mapping of the lithology, alteration and vein
structures will be conducted. GPS equipment will be used in
locating (utilizing local grid system) the mapped and/or sampled
rocks and other features. The sampling density is estimated to be
one (1) sample per hectare but can also be denser on altered and
m/or mineralized outcrops.
The estimated total number of samples which is about 120 will be
submitted to McPhar Laboratory for the analysis of gold and
silver. Duplicate or reference samples will be stored at the mine
\l( iH I orm Xu ()5 ---»
McPhar Laboratory in Makati by boat accompanied with sample
dispatch sheet and Ore Transport Permit (OTP) approved by
MGB-l. The laboratory procedure conducted by McPhar
includes:
-Samples for Drying/fmepulverizing, 2kg minimum/sample
-Samples for Drying/fine pulverizing, excess of 2kg
-Samples (-200 mesli)for An fire assay 50g (catch weight) w/
AAS finish
-Samples (-200 mesh) for Ag geochem by AAS following hot
HCL &. HCL/HN03 leach in latter stages for l hr on 0.25g
sample
-Cert. Ref Material for Au by fire assay
5.3.1.1 coverage (hectares) - 126.1 Hectares
5.3.1.2 duration- Four (4) Months
5.3.1.3 manpower complement
- Two (2) Geologists
- Four (4) Mapping Aides
- Five (5) Samplers
- One (1) Surveyor
- Three (3) Survey Aides
5.3.1.4 estimated cost
- Two (2) Geologists
Php280,000.00
- Four (4) Mapping Aides 120,000.00
- Five (5) Samplers 120,000.00
- One (1) Surveyor 60,000.00
- Three (3) Survey Aides 90,000.00
- Laboratory Analysis ( 60,000.00)
Total Php73 0,000.00
5.3.1.5 output
- Semi-detailed Map at 1:3,000 Scale Map covering
126.1 Hectares.
5.4 Detailed Survey or Studies Year 1& 2
5.4.1 Detailed Geological Mapping
After the semi-detailed survey has been conducted, a detailed
geological and geochemical survey follows. The 126 hectares
explored during the semi-detailed phase will now be reduced to
about 50-60% and the scale of the map(s) will also become
larger. This stage will involve compass and tape traverse where
stations will be tied to existing survey control points (e.g drill
holes, triangulation stations and new tie point stations) closed
to the observations or sampling points.
\li IH I orm \o 05-4
Contemporaneous with detailed mapping will identify
altered/mineralized veins/zones for trenching and channel
sampling.
5.4.1.1 nature or type of survey
Compass and Tape Traverse tied to the Survey
Control Stations.
5.4.1.2 coverage (hectares) - 60-80 Hectares
5.4.1.3 duration - Four (4) Months
5.4.1.4 manpower complement
Two (2) Geologists
Four (4) Mapping Aides
Five (5) Samplers
One (1) Surveyor
Three (3) Survey Aides
5.4.1.5 estimated cost
Two (2) Geologists
Php280,000.00
Four (4) Mapping Aides 120,000.00
Five (5) Samplers 120,000.00
One (1) Surveyor 60,000.00
Three (3) Survey Aides 00,000.00
Total Php670,000.00
5.4.1.5 output
Detailed Geologic Map 1:1,000 Seale showing
lithology, alteration, structures and sample
locations.
5.4.2 Subsurface Investigation
5.4.2.1 drilling
5.4.2.1.1 type --- Reverse Circulation(RC) & Diamond
Drilling shall be employed depending on the type and
location of the proposed drill holes.
5.4.2.1.2 number and depth - 6 drillholes/300m per
drill hole are proposed to be work out to get the
accurate mineralization of the prospect. These numbers
however, could be increased or decreased depending on
the actual condition of the ground.
5.4.2.1.3 estimated number of samples - 150 is the
minimum target, however increasing the number could
be opted to get the realistic mineralization of the
prospect area.
Mi .IS I ..mi Ni> 05-4
5.4.2.2 trenching/testpitting
5.4.2.2.1 number -
Ten (10) trenches at fifteen (15) meters average
length are projected. However, these numbers
could be increased as maybe determined during
the actual exploration works.
5.4.2.2.2 over-all length or depth
One Hundred Fifty (150) meters. But could be
increased depending on the condition of the area.
5.4.2.2.3 estimated number of samples
Two Hundred (200) Samples. But would be
increased to get the most accurate mineralization
data of the prospect area.
5.4.2.2.4 estimated cost
Phpl 50,000.00
5.5 Other Activities: Year 2
5.5.1 Environmental Impact Assessment Studies -
For the baseline assessment, monthly monitoring in the area includes
water, sediments and food chain sampling. Collected water and food
chain samples are analyzed for Hg, As, Pb and CN. Sediment samples
are analyzed for Hg, As, Ba, Cd, Cr, Pb, Se and CN. Samples will be
submitted to an assaying and environmental testing specialist (i.e.
Ostrea Mineral Laboratories, Inc.).
5.5.1.1 Duration - 12 mos.
5.5.1.2 Estimated Cost - Php200,000
5.5.2 Preparation of the Mining Project Feasibility and Lodging o/
Declaration of Mining Project Feasibility
This activity includes the preparation and validation of data base,
interpretation of the vein/alteration and ore zones, and, lithology and
oxidation zones. The sections and level plans will be digitized and wire¬
framed utilizing the Sttrpac software. Final ore reserve computation
will be done by the mining consultant in Australia also utilizing the
same software.
About three (3) months after the evaluation of the ore deposit by FRC
and its mining consultant, the mining project feasibility will be lodged to
the Mines and Geosciences Bureau for evaluation and approval.
5.6.2.1 Duration - 3 mos.
S A s ~> F Oft M/ttfi/J Dh„ inn nnn
Y|< iH I orm No 05-4
0.0 Total Estimated Exploration Cost (Pesos) - Pltp3,l00,000.00
Year 1 ___Php 1,230,000.00
Year 2 Pit pi ,870,000,00
7.0 Schedule of Activities (Gantt Chart) - Please Refer to Appendix “___
5.0 Map Attachments - Topographic map showing the Applied Area in 1:50.Pint
scale.
0.0 Signature of proponent or person preparing the exploration work program, please
specify PRC License and PTR number:
PREPARED BY:
RAY!ON S. VELASCO
Corporate Geologist
PRC Reg. No. 01267
PTR No. 2614871 A
Issued on March 11, 2004
At Aroroy, Masbate, Philippines.
ROLANDO Q. AMORES
President, FILMINERA Resources Corporation
F1LMINERA Resources Corporation
MASBATE GOLD PROJECT
TWO (2) - YEAR EXPLORATION WORK PROGRAM (APSA-V-0033)
ACTIVITIES FIRST YEAR SECOND YEAR REM
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
Research Works Ph pi 00,000.00
’reduction of Color Aerial Photo Php200,000.00
graphy and Interpretation.
Semi-Detailed Geological Mapping Php730,000.00
Detailed Geological Mapping
Php670,000.00
Drilling
Php750,000.00
re itching
Phpl 50,000.00
’reparation of Mining Project Php300,000
feasibility Study
Quarterly Total (Php 260,000.00 250,000.00 538,000.00 517,000.00 335,000.00 750,000.00 150,000.00 300,000.00 Php3,
I \ pit mmlmu Work Pro<’iY»m in ( ..mil ( h.irl APPET
\\ illi Ot-l.iil.•(.! ( os| per \
ANNEX“D”
ENVIRONMENTAL WORK
PROGRAM
MGB Form No. 1 (■»-1
Republic of the Philippines
Department of Environment and Natural Resources
MINES AND GEOSCIENCES BUREAU
North Avenue, Diliman, Quezon City
ENVIRONMENTAL WORK PROGRAM
1.0 NAME AND ADDRESS OF THE PROJECT PROPONENT
1.1 Name of Proponent : FILMINERA Resources Corporation
1.2 Address of Proponent:
Makati Office: 3rd Floor Corinthian Plaza
121 Paseo de Roxas, Legazpi Village,
Makati City 1229 Philippines
Tel. No.: (02) 811 3451
Fax No.: (02) 811 3463
Email address:
Minesite: Barangay Puro, Aroroy,
Masbate 5414 Philippines
Tel/Fax No.: (02) 841 1346
Email address:
2.0 TYPE AND NATURE OF PROJECT:
2.1 Project description:
This prospect is for a gold-silver exploration project over
potential areas covered by the Eastern Fraction of Aries Claim
at the higher relief area, which could have potential open pit
ore extension of the Colorado Vein System. The low-land
western section of the mining claims, Aries and Aquarius
Fractions adjacent to the Rio Guinobatan could be probed by
Auger Drilling for placer type of gold deposits which is within
the applied area in Aroroy, Masbate.
The objectives are:
1) To conduct detailed geologic mapping and outcrop
sampling and undertake trench probing to establish the
potential gold mineralization of the area in order to block
mineable ore reserves to support high production
demand requirement for the viability of the project.
2) To evaluate further potential mineralized areas for
increased ore reserves for extended mine life.
The amount needed to implement the proposed exploration work is
approximately Php 3.410 Million. This includes budget for the
environmental work program and socio-economic development
programs, distributed yearly as follows:
Exploration Environmental Total
Work Work
First Year 1.230 0.123 1.353
Second Year: 1.870 0.187 2.057
MGB Form No. In-1
3.0 GENERAL LOCATION AND AREA TO BE COVERED BY THE PROPOSED
PERMIT/CONTRACT AREA:
3.1 Location and Accessibility:
The proposed exploration project is in Barangays Talaba-an,
Bangon and Puro within the Municipality of Aroroy, Province of
Masbate and bounded by the coordinates 123° 23' 00" to 123°
23' 30" and 12° 28’ 30" to 12° 30’ 51” (See Survey Plan on
Annex A).
From Manila, the area is accessible by air transportation to
Masbate City, Masbate Province. Daily regular flights are
available and air travel time is about one (1) hour and twenty
(20) minutes.
From Masbate City Proper, the area is accessible by land thru a
67 kilometers gravel provincial roads.
3.2 Total Area Covered By The Application:
The prospect covers a contiguous area of 126.1442 hectares,
spanning over and covering three (3) adjoining barangays of the
Municipality of Aroroy, Province of Masbate in Masbate Island.
Total Area (hectares) = 126.1442
Location of Claims = Barangays Talaba-an, Bangon and
Puro all in the Municipality of Aroroy,
Province of Masbate
Kinds of Minerals = Gold, Silver and other associated
minerals.
4.0 DESCRIPTION OF THE EXISTING ENVIRONMENT WHERE WORK IS
PROPOSED TO BE UNDERTAKEN
4.1 Land Environment:
The information and data of the earth or soil mantle that
covers the prospect area is relatively competent. There are no
major landslides or erosions. Minimal erosions could be
observed in river and creek banks, which were due to the
effects of running water that occurs during rainy seasons.
4.1.1 Topography/Physiography
The exploration areas are generally characterized by
moderate to rolling topography with many conspicuous
domal/conical promontories, flanked by relative flat
terrain. The prominent topographical height reaches 325
meters above sea level. More rugged topography with
sharp ridges is noted at the eastern and southern portion
nf i~ViP nrm'pct arPQC pyfpn^in rr f fV»o 4-Vwj>
MGB Form No. lh-1
4.1.2 Land Use/Capability
The prospect areas are classified as mineral lands. The
surrounding areas are suited for grazing hence the
presence of many cattle ranches. Although an estimated
1/10 of its total land area is flat and suitable for
agricultural/vegetative crops, the residents prefer the
quick and more lucrative gold panning as their means of
livelihood.
Makeshift houses made of nipa, bamboo and light wooden
materials are found along areas where slopes are more
favorable and closer to the access road.
4.1.3 Pedology
The topographical relief features distinct vegetation
growth, reflective of the dominant soil type found in the
applied area. The mountainous eastern and southern
sections of the prospect area have shallow soil
accumulations (clays and talus), mainly due to moderate
and steeply sloping ground.
The eastern mountain areas generally represent the
mineralized ground where most of the exploration
activities will be conducted. Poor vegetation growth at
this section is largely due to thin and mineralized soil
cover. Slight to moderate erosion are confined on rill
and gullies.
The unmineralized western parts of the applied area are
characterized by flat to very gently sloping grounds,
mostly grasslands and patchy ricefields in alluvium soil.
4.2 Water Environment
4.2.1 Water quality
Quarterly water samplings are collected at strategic
sampling points and sent to Intertek Testing Services
laboratory in Manila on regular basis. This is made
religiously to ascertain potability and/or contamination
of its sources to ensure the safety and health of its users
and protection of the environment as well.
The following is the Average Water Sampling Results as
indicated below for reference.
ENVIRONMENTAL WATER SAMPLES
February 2003 May 2003 December 2003
Max. Tolerable Limits <0.01 ppm 0.07 ppm <0.01 ppm 0.07 ppm <0.01 ppm 0.07 ppm
Location Cyanide Mercury Cyanide Mercury Cyanide Mercury
A. Syndicate ND ND ND ND ND ND
B. Earth Dam 0.003 ND ND ND ND ND
n k i r---\ k i r~\ n i r-> K . 1---\ K , 1-V
MGB Form No. lh-1
4.2.2 Hydrology
During rainy season, run-off water in the area is high due
to frequent stormy weather and prolonged monsoon rains
aggravated by the rugged topography. Rare instances of
river swelling and flooding occur, normally at the height
of strong typhoons. The Lanang River is the main source
of both domestic and industrial water of the local
residents and the mining community all year round.
From historic record, the annual average water inflow
during the rainy season far exceeds 6,000 gpm, while dry
season average inflow is about 1,000 gpm. Excellent
climate and uninhabited watershed areas contribute to
continued water supply to the inhabitants. The prospect
areas, however, are outside the watershed.
4.3 Climatology/Meteorology
The climate is relatively humid with annual rainfall varying
from 24 to 26 cms. The average rainfall data were obtained
from the Philippine Atmospheric, Geophysical and
Astronomical Services Administration (PAG-ASA), Masbate
Station. Rainy season is from June to January with dry season
for the rest of the months. The area has an excellent climate
and good air circulation due to the absence of heavy vehicular
traffic, high-rise buildings and other industries.
The temperature is warm during the months of February,
March, April and May. From June to January, the climate is
generally cool with coolest period during December and
January.
4.4 Geological/Geomorphological Environment
4.4.1 General Geology and Geomorphology
The prospect area is of low-relief and rolling
topography which is characterized by many conspicuous
domal/conical promontories (volcanic plugs) flanked by
relatively flat terrain which are blanketed by
agglomerates lithified tuff and some volcanoclastics
about the watermost flank.
The principal mineral to be explored is gold,
classified into two genetic types of ore deposits; gold-
bearing quartz vein and placer. The gold-bearing quartz
veins are localized and confined within the northeast
trending tensional joints or faults in the grandiorite
stock.
In general, the highest-grade gold ore follows the
contact of the grandiorite and ultramatic complex. The
ore minerals consist principally of native gold with some
galena, sphalerite and chalcopyrite. Quartz is the
dominant gangue mineral. The type of rock that is
present underground (from old tunnels of Atlas
Consolidated Minina n«H --- --- •*- /~'
rock. Biotite flakes impart foliation to the rock and they
are crinkled in such a way that the crinkles constitute
lineation. The principal sulfides consist of pyrite,
sphalerite, chalcopyrite and galena. These minerals are
intimately associated with native gold and some silver.
The placer type refers to the river deposits, which
represents the continuous and successive depositions of
detrital materials derived mainly from the weathering
and disintegration of surrounding rock units in the area.
They are mostly made up of fragments of altered rocks,
ultramafics, intrusives and extrusives and associated
sedimentary rocks. These materials were transported by
surface waters occurring as veins or as discrete particles
in the country rock must have undergone the same
process. During the process of panning, the gold
particles intimately associated with fine magnetic
minerals and other heavy minerals are recovered.
The Panique and the Lanang Rivers at its central
and the southeastern peripheries bound the prospect
area, respectively. Both rivers drained westward at the
central section and empties at the flat marshy grounds of
the Port Barrera Cove.
Except for some occasional ornamental and fruit
trees, the area is generally covered with cogon. The
cultivated ground along slopes and flat areas within the
claims are planted with a few coconut clusters while the
rest are bare and are considered for cattle grazing.
4.4.2 Structural Setting
The locations of all of the five (5) gold mining
districts are along the so-called Philippine Rift zone or
the Philippine Mobile Belt. This tectonic belt has some
genetical control on the gold deposits in the country.
The Masbate vein system is thought to be a northwest
split or branch of the rift zone, which controlled the
mega fractures and the alignment of the volcanic plugs.
These splits and branches of the rift zone could have
potential for gold mineralization.
The prospect area is transected by several
northwest trending tension fractures and is apparently
situated on an elevated fault block reflecting the great
upward push by extensive and continuous volcanic
activity. The northwest recurrent-shear zones are
further complicated by the post -tension fractures. An
extensive exploration-drilling program must confirm
these.
4.4.3 Lithology
1. Metasedimentary Rocks (MS): Consist of mildly
metamorphosed sandstone and siltstone interbeds
occupying the eastern boundary of the minesite, is
the oldest rock formation exposure.
2.
Tuffaceous Agglomerate (TA): The most widespread in
the area anH vieinitv wVi4r*h nccunipc +V10
MG 13 Form No. lb-1
3. Andesite Agglomerate (AA): They are located
distinctly within the Main Vein and appeared in close
association with the Andesite flows and dikes of later
volcanic plug assimilating the agglomerate.
4. Hornblende-Auqite Andesite Porphyry (HAA): Intruded
mostly the pyroclastics in close proximity with the
quartz veining consisting of lath-shaped hornblende
and short stubby augite phenocrysts in an andesitic
groundness.
4.4.4 Mineralization and Hydrothermal Alteration
Free gold and silver metal deposition is controlled by
silica flooding and argillization. However, the gold-silver
metals are more concentrated in the quartz veins and/or
in the silicified and intensely argillized wall rocks in the
form of ultra-fine (10-20 microns) disseminations.
Silicification ranges from pure fracture filling to
pervasive-replacement within the fracture and about 1-3
meters beyond argillization (bleaching) is most intense.
Further away, chloritization and pyritization
predominates and the gold and silver values die out. Ore
values are only within the quartz veins and the argillized
zones.
Calcite dilutes the gold concentration and chalcopyrite is
occasionally seen
Black and sooty pyrolusite is a very common residual
product in the leached brecciate veins. The resulting
quartz vein appears to be cellular and resembles a
honeycomb structure with black and sooty coatings. It is
from these veins where tonnage and grade estimation
can throw us off because of its light and friable character
and of its unusually high (on occasion, above 20 g/dmt)
gold values. Au and Mn ions, being more stable, were left
behind and re-concentrated in the cavities.
The consistently higher-grade values (above 3 g/dmt) are
usually hosted in the brecciated and re-cemented quartz
veins. The vein mass is composed of quartz and silicified
rock fragments re-cemented in quartz. The process of
silica-flooding, silification and brecciation has been
recurrent thereby enriching further the vein mass. These
brecciated veins are located at or near the intersection of
the major quartz veins (Wyoming-Doris and Breccia) and
Breccia veins itself. Although the veins are not more
than 90 meters wide, the intersection measures 150
meters across. The resulting vein structure assumes a
pipe-like shape and also happens to be the most ideal
orebody configuration for open pit mining.
The tuffaceous agglomerate appeared more receptive to
quartz veining and replacement than its lithic to lapilli
tuff counterpart considering the relative degree of
porosity-permeability. Furthermore, the formation could
have been at the epithermal-low pressure setting in the
pfroftfioofirm_oonnaripp nf Vincf rnplrc
MCB Form No. lh-1
^-.5 mological Environment
4.5.1 Terrestrial plants and animals
i. Animals
Cattle ranches are abundant in the surrounding
areas. Herds of cows are seen outside the prospect
areas grazing for green vegetation. Though some
of these ranches are inside other MPSA
application, these are outside and distant from the
proposed exploration projects under this
application (APSA-V-0033).
Domesticated animals such as carabaos, horses,
cows, goats, pigs and chicken are also found in the
area. Their number is limited since the site is not
an agricultural land and very few residents are
engage in farming. A few specie of migrating birds
are seen in the areas but is not home to any form
of exotic or rare animal species that requires
protection. The ecological niche occupied by the
native fauna is almost taken over by the
introduced animal species. Wildlife, such as deer,
wild boar, monitor lizard and monkeys is no longer
in the area.
ii. Plants
The area is generally covered with cogon grasses
and shrubs suited for grazing. Mangroves and
swampy areas are found in the northwestern side
of the prospected mining claims and along the
coastal areas of Port Barrera. Occasional trees can
be seen along the banks of creeks, brooks, streams
and rivers. The hills and valleys are practically
barren except for patches of rice and corn
farmlands, vegetative crops, and coconut trees,
which grow in clusters.
4.5.2 Marine Plants and Animals
A number of fish species such as carp, bangus and tilapia
can be found in the Lanang and Guinobatan Rivers.
4.6 Socio-Economic Environment
The development of the Municipality of Aroroy lags behind in
comparison to the booming and buzzling urban centers in the
neighboring provinces. Except for the few elite residents, the
economic and social conditions of the majority are below
standard. About 10% of the town folks depend on gold panning
as their main source of livelihood. Other residents are engaged
in fishing, small-scale business like buying and selling, eateries,
sari-sari stores and the transportation business utilizing
jeepneys and motorized bancas. Some are employed in the
government offices.
Residential houses are mostly concentrated in the barrio sites
of Talaba-an, Bangon and Puro. Makeshift houses are scattered
within the areas but will not be affpot^H hv tti»
MG 13 Form No. lb-1
The Company will undertake a more detailed study on the
environment as part of its exploration work program. The
study will be comprehensive and will be submitted to the
Bureau within the two-year exploration period. This will
include detailed data presentation of the existing condition of
the surface and subsurface water, water quality, current water
use, marine environment adjacent to the proposed project site,
current land use (particularly discussion on the forest reserve
and contract reforestation are close to the project), soil
chemical characteristics, coastal use, socio-economic profile to
include people s perception on the proposed project present
biological (flora and fauna) environment, near shore and marine
environment and other relevant information.
5.0 DESCRIPTION OF EXPLORATION WORK
5.1 Description of Exploration Methods and Equipment to be used
5.1.1 Geological Mapping
The prospect areas covered by this application are in a
contiguous prospective mineralized zone.
Compass - tape traverses will be limited to rock and
mineralized veins that may be exposed incidental to the
earth moving activities in preparing the access roads and
drill pads.
Rock outcrop sampling on veins and altered mineralized
zones will be done by channeling with hand moil and
sledge hammer, for initial assay for gold grade
determination.
5.1.2 Geophysical Methods
Geophysical survey, which should commence and will
otherwise, needs to be completed as part of the
exploration activities, may be initiated. This will aid in
the identification of extension of the main mineralized
areas along strike obscured by waste dumps, collovial
scree slopes, alluvium, etc., which may conceal potential
future ore reserves. Geophysical method that may be
applied may use the following:
♦ Low-level, high-resolution aeromagnetic survey.
♦ Use of DIGHEM (electromagnetic) survey.
5.1.3 Exploration Drilling/Others
The exploration and development works carried out
should led to the definition of ore resources and reserves.
A phase of drilling should be planned to further define
the mineralized zones and to increase and upgrade any
current resource base (maximize amount of proven
reserves), to comply with the current guidelines of CIM
and JORC codes for reporting the resources and reserves.
\IGB Form No. lb-l
Assuming nnal definition of the gold-silver prospect on
the First Year, the Second Year exploration activities will
be devoted into a review of other potential target areas
within the applied area, however much of the activities is
more likely focused on various other pre-feasibility study
works.
The Diamond or Core Drilling Method will be utilized to
drill deeper holes. Core drilling method relies heavily on
lube oil, grease, diesel fuel, bentonite-drilling muds, gels
and various mud additives as the main chemical agents
used during drilling operations.
The Reverse Circulation or RC Drilling Method will be
utilized to drill and sample shallow holes, which will
comprise 80% of the planned drilling meterage. RC
drilling method operates on compressed air supplied by
compressor as the drilling medium. Unlike core drilling,
RC drilling operations uses lube oil, grease, diesel fuel
and drilling foams to stabilize caving holes.
The following major equipment will be used:
♦ Drill equipment - RCD and DD
♦ Trucks
♦ Bulldozer/Road Grader
♦ Water pumps
5.2 Preliminary Processing of Samples
Collected samples from the field outcrop exposures, drill core
and RC drill pulp samples will be split at the sample/core house
for duplicate preserved reference and the other samples
submitted to Assay Laboratory for gold assay analysis.
5.3 Map Showing the Location of the Proposed Work Area in
Relation to Readily Identified Geographic and Environmental
Features.
Please refer to Geologic Map on Appendix.
5.4 Estimated Exploration Costs
EXPLORATION EXPENSES YEAR 1 YEAR 2 TOTAL
Labor and Supervision 730,000 670,000 1,400,000
Contract Drilling - 750,000 750,000
Samples/Assay Costs - 150,000 150,000
Field Supplies 100,000 150,000 250,000
Trenching - 150,000 150,000
Aerial Photography 400,000 400.000
Total (Php) 1,230,000 1,870,000 3,100,000
Add: Environmental Costs 123,000 187,000 310,000
Grand Total (Php) 1,353,000 2,057,000 3,410,000
MGB Form No. !(->-!
Drilling activities will utilize extensively the Reverse Circulation (RC)
Drilling Method to drill about 70% of the proposed meterage. RC
Drilling method is not only fast but also relatively cheap compared to
core drilling. Core drilling to be initiated will utilize the same RC drill
units which are equipped or be converted to perform Core Drilling
when required.
6 0 IDENTIFICATION OF POTENTIAL ENVIRONMENTAL EFFECTS
6.1 On Land
With the road network already existing during the operation of
Atlas Consolidated Mining and Development Corporation
(ACMDC), there are no significant potential environmental
effects identified on constructing access roads. The planned
exploration activities will only involve the construction of short
and narrow feeder roads.
The possible environmental effect may come during movement
of drilling equipment and drill site preparations. The drilling
operations will strip rock materials and the vegetation growth
within the confines of the drilling site. Drilling operations will
produce some noise and fumes/dust. There will be minimal
surface disturbance and soil contamination considering that
existing roads and short extensions will be utilized for access to
the drill sites.
The exploration campsites will be properly maintained with
proper sanitation and hygiene. Non-biodegradable waste (e.g.
container drums, lube oils, grease and other exploration waste
will be removed from the exploration site and disposed of
properly. The exploration team will be quartered at the existing
mine facilities since the housing compound is close to the
exploration sites.
6.2 Changes in Hydrology
Major flooding will be a remote possibility due to a limited
watershed and drainage network. There will be no major
ecological alteration. Vegetation that would be destroyed will
be replenished or compensated by the present
reforestation/afforestation project of the company. Existing
hydrologic cycle will thus be maintained. Water used in drilling
is returned uncontaminated.
6.3 On the Ecology
Vegetative cover in the project area composed mainly of cogon
grasses and shrubs and bushes, trees of low commercial value
and a number of fruit trees. This would affect only small areas
since drilling activities will be conducted at areas where
potential deposits are needed to be explored.
MGB Form No l(->-l
7.0 ENVIRONMENTAL MANAGEMENT MEASURES
7.1 Colour Aerial Photography
Colour Aerial Photography of the prospect area at 1:10,000
scale will be included in the Aerial Photography of the approved
MPSA 095-97-V area which is wrapping up its exploration phase
and undergoing the Mining Feasibility Study, together with the
rest of the applied areas to commence anytime during this
period. This will provide the necessary photo coverage for the:
♦ Historical recording of current infrastructure (both
mining and community), environment, etc., prior to
further activity (can be useful in identifying actual
habitations prior to mining, etc.);
♦ Planning of mining activities, infrastructure
locations, definition of environmentally and socially
sensitive areas, presentations and so on;
♦ Geological photographic interpretation mapping and
so forth to delineate areas of potential for hosting
additional resources.
7.2 Creation of Company Environmental Management Officers who
will be responsible for monitoring and implementing programs
for regulatory compliance.
7.3 To protect any special habitat of flora and fauna in the area,
hunting of wildlife and rate animal/bird species shall be strictly
prohibited in the area. "Kaingin" and setting fire on the
vegetation shall be restricted.
7.4 Drainage system will be planned in a way to minimize erosion
and landslides. Major excavations will be backfilled and
recontoured, in such a way that slopes’ failure will not occur
and the area will be landscaped.
7.5 Cutting of trees will be avoided as much as possible.
7.6 At the exploration sites, drill sumps will be lined with
impervious materials to prevent the possibility of
contaminating the soil. The effluents from the drill equipment
will be directed into a collecting sump for proper disposal.
7.7 All excavated materials will be contained for subsequent
backfilling, re-vegetation and prevention of ARD.
7.8 Drill sumps shall be cleaned of possible contaminants prior to
backfilling of original materials.
7.9 Vegetation that will be destroyed will be replenished or
compensated by reforestation/afforestation projects. A nursery
is being maintained for this purpose.
7.10 The exploration activities will ensure that the ranches and
coconut plantations in the vicinity and the nearby coastal areas
will not be affected.
v i i ---:n i--- i j -------- ” '
MGI3 Form No. Ib-1
7.12 Information Education Campaigns will be implemented for the
communities during the exploration stage and an assessment of
public perception to the project will be undertaken. The
activities will be coordinated with the affected residents.
7.13 Damages resulting from the exploration activities will be
compensated.
7.14 The environmental management budget is 10% of the total cost
of exploration work program.
7.15 Priority employment of available local labor during drilling
operations.
Prepared by:
PRC Reg. No. 01836 '
PTR No. 2614872 A
Issued on March 11, 2004
At Aroroy, Masbate, Philippines
Conforme:
R Q. AMORES
Px 'ILMINERA Resources Corporation
FILMINERA Resources Corporation
MASBATE GOLD PROJECT
TWO (2) - YEAR ENVIRONMENTAL WORK PROGRAM (APSA-V-0033)
ACTIVITIES FIRST YEAR SECOND YEAR I
i 2 3 4 5 6 7 8 9 10 li 12 i 2 3 4 5 6 7 8 9 10 11 12
1. Company Environmental Management Office
2. Information & Education Campaigns
3. Compensation for Damages to Crops of
Aflected Farmers/Planters
4. Revegetation of affected areas: |
= Nursery for reforestation/afforestation project
= Nursery for fruit-bearing trees
5. Backfilling/Recontouring of Major Excavations
Cost Per Quarter/Total Cost: Flip PH P38,750.00 PHP38,75 1.00 PHP 38,75 0.00 PHP 38,75 0.00 PHP38,750.00 PH P38,750.00 PH P77,500.00 pi
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