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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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