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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 tw


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;


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; ___


xxx


3. The foregoing statements are true and correct and in accordance with the records of





tiie Corporation.





r, r ■■ ~


IN WITNESS WHEREOF, I have hereunto set may han _day of April 2005 at


Makati City.





/'fte.■>i’£ftft ~~


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.


&n?r n n ?nn1


Witness my hand and seatthis ^ - day of April 2005.





EMt**? 'C\ PAN AS


. i-j '*


Appci(Uf.*o l





Doc. No. PTR No. 344'--:.* ' • ii City


Panp Nn “W- IBP No. v! t1 • Cfoapier


 ANNEX"B"








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1


 AMENDED PLAN M- oidbi


il) i Cs/*


OF





MINERAL PRODUCTION SHARING





AGREEMENT APPLICATION








APSA-0Q031-V





AS PREPARED FOR


A^svv r\


iLinim_i\M rvLdUurtoCb v^^rvr. V---11








Situated In The





Brgy of Paniqu & Puro





Mun of Aroroy vi^Cd


Prov of Masbate fra’Japay





Island of Masbate


I


Containing an Area of 129.7217 Has


Scale: 1 50,000








Prepared By:





ayton


ngineer


GE No Date 03-25-95


PTR No 17 Date: 01-20-05











i c^'v '\5jfofo'





MAPILt tO B KM


ci*ACUUW >« 0 *«








3 Statute Miles





2000 3000 4000 Meters





2000 3000 4000 Yards


3 Nautical III INDEX TO BOUNDARIES INDEX TO i








CONTOUR INTERVAL 20 METERS WITH SUPPLEMENTARY


CONTOURS AT 10 MFTFR INTFRVAI R


VERTICAL DATUM MEAN SEA LEVEL





TRANSVERSE MERCATOR PROJECTION


HORIZONTAL DATUM LUZON DATUM





HYDROGRAPHIC DATUM MEAN LOWER LOW WATER




















Municipality


Piovsnct 0* Mnbalt


Municipality


Fubashed by I Mandaon


Department of Environment and Natural Resources ? Aforoy


3 Bateno


4 Masbate


NATIONAL MAPPING & RESOURCE INFO RM AD ON AUTHORITY


Fort Bonifacio, Makati


Metre Manila














BA


 ANNEX“C”





EXPLORATION WORK


PROGRAM


 Republic of the Philippines


Department of Environment and Natural Resources


MINES AND GEOSCIENCES BUREAU


North Avenue, Diliman, Quezon City








EXPLORATION WORK PROGRAM


Name and Address of Company/Proponent:


F1LMINERA Resources Corporation


Main Office: 3I(I Floor, Corinthian Plaza Condominium Bldg.,


121 Paseo de Roxas, Legazpi Village, Makati City


Philippines


Telephone No. (02) 811 3451 (Connecting All Depts.)


Facsimile No. (02) 811 3463


Email address:


Minesite : Barangay Puro, Aroroy, Masbate, 5414 Philippines


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 Puro and


Panique within the Municipality of Aroroy, Province of Masbate.


Masbate Island, Philippines. It is bounded by geographic coordinates


12°27’00” to 12°28’30.00” N latitude and 123°22’59 to 123"23’30” 1


longitude with the following technical descriptions:





Corner LATITUDE LONGITUDE


1 12’ 27’ 00.00r- 123 22’59.992”


2 12° 27’16.273” 123 22’59.992"


3 12’ 27’16.273” 123 23’ 24.369”


4 12 28’ 09.093” 123 23’24.366”


5 12° 28’ 09.088” 123' 23’ 03.834"


6 12’ 28' 16.253” 123 22’59.974”


7 12’ 28’29.922” 123 22’59.994”


8 12° 28’30.001” 123'23’30.000”


9 12’ 28’ 11.953” 123 23’30.000” j


10 12° 28’11.619” 123° 23’29.346”


11 12’ 28’ 10.382” 123° 23’29.999”


12 12° 27’00.001” 123’ 23’30.000”








Area or size of coverage (hectares):


This prospect covers a total area of 129.7217 hectares


encompassing two (2) barangays in the Municipality of Aroroy.


Province of Masbate.


MGB Form No. 05-4








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 b\


relatively flat terrain. Rugged topography with sharp ridges is noted


in the prospect area.


4.2 Accessibility-


From Masbate, the prospect site is easily accessible to any type


of motorized vehicle utilizing the Masbate-Milagros road or the


Aroroy- Baleno road. On the other hand, flights from Manila to


Masbate and vice versa is available on a daily regular basis with an


air travel time of one (1) hour and twenty (20) minutes.


4.3 -' Drainage System/s -


The prospect area is bounded by the Guinobatan River on the


east and northeast portion and by the tributaries of Lanang River at


the southwest. Both rivers drain westward to the Port Barrera Cove.


4.4 Vegetation -


The area has limited forest trees. It is generally covered ssitli


cogon grasses and shrubs suited for grazing. Mangroves and swamp)


areas are found in the eastern portion of the prospect along the


coastal areas. The hills and valleys are practically barren except for


corn farmlands, wild bananas, coconuts and vegetative crops which


grow in clusters.


4.5 Land Use -


The proposed area is 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 Hat


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


ACMDC previous staff geologists and geological aides


generated extensive records of surface trenching, underground


geological mapping and sampling, assay data, drill hole logs,


blast hole assay, bench plans and survey data. These data are


still available at the project site











Page 2 of 10 Pages


APSft-V-0031


M(SB Form No. 05-4








5.1.1.1 nature or type of study or undertaking -


Research work shall focus in the review of all the


available ACMDC records sorting out of plan maps,


cross section and other relevant files, of particular to


the Main Vein pit historic production records,


geological mapping and assays. The ob jective is to


consolidate the geological information from the Main


Vein pit whose NNW gold mineralization trend is still


open towards the applied area. Research will also be


undertaken as to the extent of the ACMDC Waste


Dumpsites which probably covered some good surface


vein exposures and old workings.


5.1.1.2 duration - Two (2) months





5.1.1.3 coverage - Applied area and vicinities





5.1.1.4 proponent - Filminera Resources Corporation





5.1.1.5 results or conclusions arrived at - The outcome will


dictate the scope and amount of exploration work to


be introduced in the area targeted initially to define


any gold mineralization potential, or some possibility


of mineable reserves existence in the area.


5.1.2 Data compilation/collation - All previous exploration data will





be compiled and stored carefully. Relevant geological


information from old maps and sections such as grade,


structures, lithology and alteration zones will be digitized to


produce a working geological map. Old assays and drill data


w ill be stored in the computer to form database files.


5.1.2.1 geochemical/geophysical data - None.





5.1.2.2 lithological data - Rock types based on old maps will


be compiled and verified in the field


5.1.2.3 mineralization/alteration studies - Mineralization and


alteration map w ill be digitized


5.1.2.4 various thematic maps covering the target area N/A


5.1.2.5 estimated cost - Php 100,000.00


5.2 Reconnaissance/Regional Survey or Studies


5.2.1 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 A


Interpretation


Aerial photography by GEO-SURVEYS and MAPPING Inc.


(GSMI, a Metro Manila based Geomatics company).


GSM I upon implementation of the activity will fly-in its company





owned CESSNA plane equipped with LEICA RC30, a large


format camera and other field equipments namely: GPS Plight


Navigation System, a GYRO, FLYKIN GPS data processing


software and a PC for data acquisition and recording.





Page 3 of 10 Pages


M(iB I'orm No. 05-4








GSMI plane, while onsite will utilize the project airfield for the


duration of the Aerial Survey. Personnel involved in the activity


are six (6) from GSMI (pilot, co-pilot, aircraft mechanic, camera


technician and 2 surveyors). GSMI field surveyors will he


accompanied by 4 Filminera personnel assisting GSMI to stake


out their ground survey photo control points.


Recorded flight data gathered during the survey will he brought


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 the 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, trend of


vein structures, trend 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.


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.


5.2.13 proponent (companies or groups which will undertake the


survey or study)


Geo-Surveys & Mapping, Inc.


FRC geologists





5.2.1.4 coverage (hectares) - 129.7217 Hectares


5.2.1.5 total or estimated cost - Php400,000.00





Php200,000.00 (Php90,000 for images and Plipl 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.


Page 4 of 10 Pages


APSA-V-0031


i i.mmvDsalazar03-04-04


 -Geo-interpreted map with other features


5.2.2 Regional Geological Survey - None.


5.2.2.1 coverage (hectares) - N/A •


5.2.2.2 duration - N/A


5.2.2.3 manpower complement - N/A


5.2.2.4 estimated cost - N/A


5.2.2.5 output - N/A


5.2.3 . Regional Geochemical Survey - None.


5.2.3.1 coverage - N/A


5.2.3.2 sampling media/sample type - N/A


5.2.3.3 sampling density/estimated number of samples N/A


5.2.3.4 mode of analysis/target elements - N/A


5.2.3.5 manpower complement - N/A


5.2.3.6 estimated cost - N/A ■


5.2.3.7 output - N/A


5.2.4 Geophysical Survey-None.


5.2.4.1 nature or type of survey - N/A


5.2.4.2 coverage (hectares) - N/A •


5.2.4.3 duration - N/A


5.2.4.4 manpower complement - N/A


5.2.4.5 estimated cost - N/A


5.2.4.6 output - N/A





5.3 Semi-detailed survey or follow-up studies Year 1





5.3.1 Geological mapping/alteration studies


A semi- detailed geologic mapping program concomitant with





rock sampling will immediately commence after the


interpretation of the color aerial photography. In the


identification of priority exploration targets, the completed


aerial photography will be correlated with the past exploration


maps of ACMDC. The mapping activity will be undertaken


using compass and tape traverses tied to survey control tie


points. Such activity will focus in the mapping of structures,


lithology, alteration and quartz veinings. Chip and channel


sampling will be conducted primarily on mineralized altered


zones and quartz vein outcrops or exposures from trenches.


The sampling density is estimated to be one (1) sample per


hectare but can also be denser depending on altered and


mineralized outcrops.





The estimated total number of samples which is about 130 will


be submitted to McPliar Laboratory for the analysis of gold


and silver content. Duplicate or reference samples will be


stored at the mine site. Samples for laboratory analysis w ill lie


shipped to McPhar Laboratory in Makati with proper sample


dispatch sheet and Ore Transport Permit (OTP) approved b\


MGB-V. The laboratory procedure conducted by McPhar


3 includes:


-Samples for Drying/fine pulverizing, 2kg minimum/sample





-Samples for Drying/fine pulverizing, excess of 2kg





Page 5 of 10 Pages


mPSA-V-0031


 -Samples (-200 mesli) for An fire assay 50g (catch weight) w/


AAS finish


-Samples (-200 mesh) for Ag geocliem by AAS following hot


IICL & HCL/HN03 leach in latter stages for 1 hr on 0.25g


sample


-Cert. Ref. Material for An by fire assay





5.3.1.1 coverage (hectares) - 129.7217 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 Php28U.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 - Php730,000.00





5.3.1.5 Output


- Semi-detailed map at 1:5000 scale covering





130.851 hectares


5.3.2 Geochemical Survey - The conduct of Geochemical Survey in


the area is discounted due to possible contamination from wind


blown dust generated from nearby ACM DC mill plant having


operated for 14 years (1980 -1994) processing gold ore.


Leachates from the ACMDC open pit waste dumps draining


into the applied area contributes contamination into creeks.


5.3.2.1 coverage - N/A





5.3.2.2 sampling media - N/A


5.3.2.3 sampling density/number of samples - N/A


5.3.2.4 mode of analysis/target elements - N/A


5.3.2.5 manpower complement - N/A


5.3.2.6 estimated cost - N/A


5.3.2.7 output - N/A


5.3.3 Geophysical Survey - None.


5.3.3.1 nature or type - N/A


5.3.3.2 coverage - N/A


5.3.3.3 manpower complement - N/A |


5.3.3.4 estimated cost - N/A





Page 6 of 10 Pages


APSA-V-0031


jimmypsalazar03-04-04


MGB Form No. 05-4








5.3.3.5 output - N/A


5.3.4 Subsurface investigation - None.


5.3.4.1 type - N/A


5.3.4.2 number and overall length or.depth - N/A


5.3.4.3 estimated number of samples to be taken - N/A


5.3.4.4 mode of analysis/target elements - N/A


5.3.4.5 manpower complement - N/A


5.3.4.6 estimated cost - N/A


5.3.4.7 output - N/A


5.4 Topographic Survey - None.


5.4.1 coverage N/A


5.4.2 scale and contour intervals - N/A


5.4.3 manpower complement - N/A .


5.4.4 estimated cost - N/A


5.4.5 output - N/A


5.5 Detailed Survey or Studies - Year 1 & 2





5.5.1 Detailed Geological Mapping _


After the semi-detailed survey has been conducted, a detailed





geological work will follow. The 130 hectares explored during


the semi-detailed phase will he delineated into areas judged to


have favorable gold mineralization potential for target testing.


Target testing will involve a much thorough compass and tape


geological mapping, trenching and sampling works to delineate


the highly favorable zones for drilling. Closed spaced trenching


(15 meters apart) shall be undertaken and 1.0 meter sampling


will be implemented in the altered and mineralized vein


outcrops. About 200 surface samples mostly from trench and


vein outcrops will be collected and sent to McPhar laboratory


in Manila for gold analysis. The estimated cost of sample


analysis including transport id Php 100,000.


5.5.1.1 nature or type of survey '


- Compass and Tape traverse tied to the Survey





Control Stations.


5.5.1.2 coverage (hectares) - Area will depend on the


results of semi-detailed mapping delineating the


favorable zones. .


5.5.1.3 duration- Four (4) Months





5.5.1.4 manpower complement





- Two (2) Geologists


- Four (4) Mapping Aides


- Five (5) Samplers •


- One (1) Surveyor


- Three (3) Survey Aides





5.5.1.5 estimated cost





Page 7 of 10 Pages


 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








Total - Php670, 000.00


5.5.1.6 output





- Detailed Geologic Map at 1:1,000 Scale showing


lithology, alteration, structures and sample


locations.





5.5.2 Detailed Geochemical Survey - The conduct of Geochemical


Survey in the area is discounted due to possible contamination


from wind blown dust generated from nearby ACM DC mill


plant having operated for 14 years (1980 -1994) processing


gold ore. Leachates from the ACMDC open pit waste dumps


draining into the applied area contributes contamination into


creeks.


5.5.2.1 coverage of grid survey - N/A





5.5.2.2 estimated number of samples-- N/A


5.5.2.3 mode of analysis/target elements - N/A


5.5.2.4 manpower complement - N/A


5.5.2.5 estimated cost - N/A


5.5.2.6 output - N/A





5.5.3 Subsurface Investigation


5.5.3.1 drilling- •


5.5.3.1.1 type - Reverse Circulation and Diamond


Drills


Initial drilling will avail of a





contractor’s Diamond Drill unit


for 2 months duration including


mobilization. Six (6) drill holes


spaced 50 meters apart will be


sufficient to drill indicate about


300 meters of ore mineralization at


the applied area. Drilling will be


supervised by one (1) geologist


and two (2) samplers working


closely with the contractor’s drill


operator and helpers to log and


sample the drill core. Assuming


favorable results from the 6 holes


further infill drilling (Phase 111)


with the use of Reverse Circulation


will be planned out to fully firm up


the reserves for the Feasibility


Study. The Phase II drilling


budget and plan is not considered


in this program yet as it will





Page 8 of 10 Pages


APSA-V-0031


jimmypsalazar03-04-04


 depend on the outcome of the


Phase I diamond drilling.





5.5.3.1.2 number and depth


- six (6) drill holes at sixty (60)


meters average depth.


5.5.3.1.3 estimated number of samples


- Around three hundred (300)meter


samples of half split core Mill he


bagged for delivery to the McPhar


Laboratory for gold analysis.


5.5.3.1.4 estimated cost -


- Php 1,250,000.00 broken doMii as


follows:


Geology Labor and


Materials P 100,000


Assaying Cost 150,000


Drilling Cost 750,000


Drill Mobilization 250,000





5.5.3.2 trenching/test pitting - None.


5.5.3.2.1 number- .


- Twenty (20) trenches at 15 meters


average length


5.5.3.2.2 over-all length or depth


- Three hundred (300) meters


5.5.3.2.3 estimated number of samples


- Three hundred (300) samples


5.5.3.2.4 estimated cost -


- Php 150,000.00





5.5.3.3 tunneling or aditting - None.


5.5.3.3.1 number - N/A


5.5.3.3.2 over-all length or depth - N/A


5.5.3.3.3 estimated number of samples - N/A


5.5.3.3.4 estimated cost - N/A























Page 9 of 10 Pages


 Total Estimated Exploration Cost (Pesos) - Php3,630,000.00





Year 1 Plw1,353,000.00





Year 2 PhD2.277M0.00








Schedule of Activities (Gantt Chart) - Please Refer to Appendix “_


Map Attachments - Topographic map showing the Applied Area in 1:50.000


scale.


Signature of proponent or person preparing the exploration work program, please


specify PRC License and PTR number:





PREPARED BY:








RAMON S. VELASCO


Corporate Geologist


PRC Reg. No. 01267


PTR No. 2614871 A


Issued on March 11, 2004


At Aroroy, Masbate, Philippines


 FILMINERA RESOURCES CORPORATION


MASBATE GOLD PROJECT





TWO (2) - YEAR EXPLORATION WORK PROGRAM


APSA-V-00031








ACTIVITIES FIRST YEAR SECOND YEAR REMAF


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 WORK | Php 100,000





PRODUCTION OF COLOR AERIAL Php 400,000


PHOTOGRAPHY AND INTERPRETATION





SEMI-DETAILED MAPPING Php 730,000





DETAILED GEOLOGICAL MAPPING Php 670,000





DRILLING IE ...... Php1,250.00C





TRENCHING --- Php 150,000 . j

















QUARTERLY TOTAL 100,000 240,000 342,500 .547,500 402,000 684,666 883,334 100,000 3,3


 ANNEX“D”








ENVIRONMENTAL WORK


PROGRAM


MGB Form No. 16-1








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,


Tel/Fax No.: Masbate 5414 Philippines


(02) 845 0714


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 major fault structure that may have


induced tensional fractures within the applied area in Aroroy,


Masbate. This is best portrayed and delineated by the wide-


quartz breccia structure for potential lode of gold deposit of the


claim area.


The objectives are:


1) To conduct detailed geologic mapping of the


prospect group of claims and southward to Panique


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 3.630 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: 2.070 0.207 2.277


Total 3.300 0.330 3.630


MGB Form No. 16-1





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 Puro and


Panique within the Municipality of Aroroy, Province of Masbate


and bounded by the coordinates 123° 20' 23" to 123° 23' 30"


and 12° 27' 00" to 12° 28' 30" (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-Bv The Application:


The prospect covers a contiguous area of 129.7217 hectares,


spanning over and covering two (2) adjoining barangays of the


Municipality of Aroroy, Province of Masbate in Masbate Island.


Total Area (hectares) = 129.7217


Location of Claims = Barangays Puro and Panique 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


of the project areas extending to the boundaries of the


comprising barangays.


MGB Form No. 16-1





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 riceflelds in alluvium soil.


4.2 Water Environment





4.2.1 Water quality


Regular water and sediment samplings are collected at


strategic sampling points. 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 and Sediment


Sampling Results as indicated below for reference.





ENVIRONMENTAL BASELINE WATER & SEDIMENT SAMPLINGS


Monthly water and sediment sampling are continuously collected on the


following sample monitoring stations:


1. Panique Creek Upstream


2. Panique Creek Downstream


3. Rio Guinobatan Upstream


4. Rio Guinobatan Downstream


5. Port Barrera


The following are the most recent data collected from the above


monitoring stations:


 MGB Form No. 16-1





I Water Samples January 2006 February 2006


Mercury Mercury


Location (ppm) (ppm)


Panique Creek Upstream <0.001 <0.001


Panique Creek Downstream <0.001 <0.001


Rio Guinobatan Upstream <0.001 <0.001


Rio Guinobatan Downstream <0.001 <0.001


Port Barrera <0.001 <0.001











Sediment Samples January 2006 February 2006


Mercury Mercury


Location (ppm) (ppm)


Panique Creek Upstream <0.004 <0.004


Panique Creek Downstream <0.004 <0.004


Rio Guinobatan Upstream <0.004 <0.004


1 Rio Guinobatan Downstream <0.004 <0.004


Port Barrera <0.004 0.423





Started on December 2004, additional monitoring stations were





established to monitor the effect of the activity of the small scale


mining, cyanidation plants and rod milling. The selections of the


monitoring stations were based on the survey of the common creeks


and drainage within the area where small scale mining is


predominant.





The following are the graphical presentation of the results from the





water and sediment sampling from the additional monitoring


stations.


WATER SAMPLE








0.045 Water Sample-Panique L700


0.040


ST 0.035





I' 0.020





H 0.015


J 0.010


0.005


0.000


8- 20- 18- 30- 27- 29- 16- 21- l 14- 20- 20-


CM


Dec- Jan- M ay- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-


04 05 05 05 05 05 05 05 05 05 06 06








DAO 34 Std. Value (Hg=0.002 mg/I) ---•---Mercury (mg/I)








0.0035


0.0030





~ 0.0025


0.0020


~ 0.0015


X 0.0010


0.0005


0.0000


8- 20- 18- 30- 27- 29- 16- 21- 24- 14- 20- 20-





Dec- Jan- M ay- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-


04 05 05 05 05 05 05 05 05 05 06 06





DAO 34 Std Value (Hg=0.002 mg/I) Series 1


MGB Form No. 16-1











0.20


0.18


Mercury (mg/I) Cyanide (mg/I) Mercury (mg/I) Cyanide (mg/I) 0.16


0.14


0.12


0.10


0.08





0.06


0.04


0.02


0.00


8- 20- 18- 30- 27- 29- 16- 21- 24- 14- 20- 20-





Dec- Jan- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-


04 05 05 05 05 05 05 05 05 05 06 06





DAO 34 Std. Value (CN=0.05 mg/I) ---*---Seriesl














0.008





0.007


0.006


0.005





0.004


0.003





0.002


0.001





0


8- 20- 18- 30- 27- 29- 16- 21- 24- 14- 20- 20-


Dec- Jan- M ay- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-





04 05 05 05 05 05 05 05 05 05 06 06





DAO 34 Std Value (Hg=0.002 mg/I) ---•---Seriesl














Water Sample-Panique School Site


0.18


0.16


0.14





0.12


0.10


0.08


0.06


0.04


0.02


0.00











04 05 05 05 05 05 05 05 05 05 06 06








DAO 34 Std Value (CN=0.05 m g/l) ---•--- Cyanide (m g/l)





















































8- 20- 18- 30- 27- 29- 16- 21- 24- 14- 20- 20-





Dec- Jan- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-


04 05 05 05 05 05 05 05 05 05 06 06





DAO 34 Std Value (Hg=0.002 mg/I) ---*---Mercury (mg/I)


MGB Form No. 16-1











0.060


0.050


Mercury (mg/kg) 2 Mercury (mg/I) Mercury (mg/I) Mercury (mg/I)


0.040


0.030





0.020





0.010


0.000





8- 20- 18- 30- 27- 29- 16- 21- 24- 14- 20- 20-


Dec- Jan- M ay- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-


04 05 05 05 05 05 05 05 05 05 06 06





DAO 34 Std Value (Hg=0.002 mg/I) ---®---Mercury (mg/I)














0.060





0.050


0.040





0.030





0.020





0.010





0.000








04 05 05 05 05 05 05 05 05 05 06 06





-DAO 34 Std Value (Hg=0.002 mg/I) ---e--- Mercury (mg/I)


















































8- 20- 18- 30- 27- 29- 16- 21- 24- 14- 20- 20-


Dec- Jan- M ay- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-


04 05 05 05 05 05 05 05 05 05 06 06





DAO 34 Std Value (Hg=0.002 mg/I) ---•---Hg (mg/I)





rlENT SAMPLES





Sediment Sample-Panique L700


30.000


25.000





20.000





15.090





10.000


5.000





0.000





8- 20- 17- 30- 27- 30- 16- 21- 24- 14- 20- 20-


Dec- Jan- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-


04 05 05 05 05 05 05 05 05 05 06 06








ANZECC Std Value (Hg=0.15 mg/kg) Mercury (mg/kg)


MGB Form No. 16-1











Sediment Sample-Panique L-700








Mercury (mg/kg) Arsenic (mg/kg) Mercury (mg/kg) Arsenic (mg/kg)
































Dec- Jan- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-





04 05 05 05 05 05 05 05 05 05 06 06





ANZECC Std Value (As=20 mk/kg) ---•---Arsenic (mg/kg)















































8- 20- 17- 30- 27- 30- 16- 21- 24- 14- 20- 20-


Dec- Jan- May- Jun- Jul-05 Aug- Sep- Oct- Nov- Dec- Jan- Feb-


04 05 05 05 05 05 05 05 05 06 06








ANZECC Std Value (Hg=0.15 mg/kg) ---©---Mercury (mg/kg)











Sediment Sample- Gintong Araw



































8- 20- 17- 30- 27- . 30- 16- 21- 24- 14- 20- 20-


Dec- Jan- May- Jun- Jul-05 Aug- Sep- Oct- Nov- Dec- Jan- Feb-





04 05 05 05 05 05 05 05 05 06 06





ANZECC Std Value (As=20 mg/kg) ---®---Arsenic (mg/kg)






























































ANZECC Std Value (Hg=0.15 mg/kg) ---«---Mercury (mg/kg)





MGB Form No. 16-1




















Marcury (mg/I) Arsenic (mg/kg) Mercury (mg/kg) Arsenic (mg/kg)
































8- 20- 17- 30- 27- 30- 16- 21- 24- 14- 20- 20-





Dec- Jan- M ay- Jun- Jul-05 Aug- . Sep- Oct- Nov- Dec- Jan- Feb-


04 05 05 05 05 05 05 05 05 06 06


ANZECC Std Value (As =20 mg/kg ---»---Series!





















































8- 20- 17- 30- 27- 30- 16- 21- 24- 14- 20- 20-


Dec- Jan- May- Jun- Jul-05 Aug- Sep- Oct- Nov- Dec- Jan- Feb-





04 05 05 05 05 05 05 05 05 06 06








ANZECC Std Value (Hg =0.15 mg/kg) ---•---Hg (mg/kg)











Sediment Sarriple-Mabanban Area












































8- 20- 17- 30- 27- 30- 16- 21- 24- 14- 20- 20-


Dec- Jan- M ay- Jun- Jul-05 Aug- Sep- Oct- Nov- Dec- Jan- Feb-


04 05 05 05 05 05 05 05 05 06 06





ANZECC Std Value (As=20 mg/kg) ---®---Arsenic (mg/kg)


















































8- 20- 17- 30- 27- 30- 16- 21- 24- 14- 20- 20-





Decr Jan- M ay- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-


04 05 05 05 05 05 05 05 05 05 06 06





ANZECC Std Value (Hg=0.15 mg/kg) ---»---Mercury (mg/kg)


MGB Form No. 16-1






































8- 20- 17- 30- 27- 30- 16- 21- 24- 14- 20- 20-


Dec- Jan- M ay- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-


04 05 05 05 05 05 05 05 05 05 06 06


ANZECC Std Value (As=20 mg/kg) ---•---Arsenic (mg/kg)














Sediment Sample-Gold Bug





























8- 20- 17- 30- 27- 30- 16- 21- 24- 14- 20- 20-


Dec- Jan- M ay- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-


04 05 05 05 05 05 05 05 05 05 06 06





ANZECC Standard Value (Hg=0.15 mg/kg) ---•---Mercury (mg/kg)








Sediment Sample-Gold Bug


250 -1------------”---7-----.....


j=P 200 215.28





"5i


£ 150


o


100










0


8- 20- 17- 30- 27- 30- 16- 21- 24- 14- 20- 20-


Dec- Jan- M ay- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb


04 05 05 05 05 05 05 05 05 05 06 06





-ANZECC Std Value (As=20 mg/kg) ---•---Arsenic (mg/kg)


Mercury for both water and sediment samples at Carloto Area is


significantly high. The monitoring station is close to a cyanidation plant.


Level 700 monitoring is the common drainage from various rod mills and


has also registered high level of mercury for both sediment and water.


The samples are analyzed by Ostrea Mineral Laboratories, Incorporated


located at Binan, Laguna. The laboratory is accredited by the following:


1. ISO/IEC 17025-2000


Accreditation No. LA-1997-0017


2. Department of Environment and Natural Resources


(Analysis performance, documentation and related technical


capability)


MGB Form No. 16-1





3. Department of Health (Certified Laboratory)


With the anticipated increase in activity during construction and


operation stages, environmental monitoring will expand its scope and


coverage. The monitoring will then include air quality, noise survey and


drinking water monitoring.


Except for the air quality and noise survey, all samples will be


continuously being collected every month.


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 March, April


and May. From June to February, the climate is generally cool


with coolest period during December to February.


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 fensional 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


anH ohalcouvrite. Quartz is the


MGB Form No. 16-1





dominant gangue mineral. The type of rock that is


present underground (from old tunnels of Atlas


Consolidated Mining and Development Corporation) are


serpentinized peridotite granodiorite, aplite and


lamprophyre. Granodiorite is by far the predominant


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 Guinubatan 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.


MGB Form No. 16-1








2. Tuffaceous Agglomerate (TA): The most widespread in


the area and vicinity, which occupies the northern


and western flanks on the site. It is the assemblage of


inter-grading meta-tuff and agglomerate.





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


cr the relative degree of


MGB Form No. 16-1


porosity-permeability. Furthermore, the formation could


have been at the epithermal-low pressure setting in the


stratification sequence of host rocks.


4.5 Biological 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-0031).


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.


MGB Form No. 16-1





Residential houses are mostly concentrated in the barrio sites


of Puro, Panique and Lanang. Makeshift houses are scattered


within the areas but will not be affected by the exploration


activities. Electricity is not available in the area. Privately


owned generators are the only source of power.


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 Aerial Photography


Aerial Photography has been undertaken on the prospect,


in lieu of the Geophysical Survey, which was already


completed. This was undertaken for the whole areas of


concern of the Company (areas granted and areas


applied/undergoing evaluation). This was undertaken


during the Mining Feasibility Study for the granted MPSA


095-97-V. The aerial photography will aid in creating


historical data prior to the actual mining operations.


The aerial photography will be a more detailed study on


the environment as part of the exploration work program


and would serve as future reference over these mining


areas as far as environmental disturbance is concerned.


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.


MGB Form No. 16-1


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 940,000 840,000 1,780,000


Samples/Assay Costs 150,000


60,000 210,000


Field Supplies 30,000 80,000 110,000


Drill Site/Mobilization - 250,000 250,000


Contract Core Drilling - 750,000 750,000


Aerial Photography 200.000 - 200,000


Total (Php) 1,230,000 2,070,000 3,300,000





Add: 10% Contingency 123,000 207,000 330,000





Grand Total |Php) 1,353,000 2,277,000 3,630,000








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 is 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


MGB Form No. 16-1





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.


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.


 A<^A7 /





MGB Form No. 16-1





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.


7.11 The drill sites will be located, as much as possible, away from


natural drainage system.


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.


7.16 No Exploration activity to be conducted at the Panique


Tailings Storage Facility Area.


ADDITIONAL BASELINE INFORMATION ON THE LAND





USE/CAPABILITY OF THE PROJECT AREA AND SUMMARY MATRIX


OF EXPLORATION ACTIVITIES INCORPORATED IN THE REVISED


EXPLORATION WORK PROGRAM:





Mitigating Measures Schedule of


Activity Impact Implementation Cost


Water sprinkling to


Excessive dust suppress dust


1. Rehabilitation of road Change in air 1. Proper maintenance Second quarter of


quality of vehicles and heavy


equipment.


2. Ground smoke Php 70,000


belching units.


network Alteration of No cutting of trees second year


existing vegetation unless very necessary.


Increase noise Proper maintenance of


level equipment


Ground Collect contaminated


2. Removal of oil- contamination soil and store in drums Second quarter of


or any appropriate


container for further Php 25,000


treatment.


contaminated ground Excessive noise Provide safety second year


from heavy paraphernalia to


equipment workers





Prepared by:








DANILO S. LATUG/


Project Manager


PRC Reg. No. 01836


PTR No. 2614872 A


 FILMINERA RESOURCES CORPORATION





MASBATE GOLD PROJECT





TWO (2)-YEAR ENVIRONMENTAL WORK PROGRAM


APSA-V- 00031





ACTIVITIES FIRST YEAR SECOND YEAR REMARK


1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 (pe<





Company Environmental Mngt. Office Covered by co


Environmenta


Information and Education Compaigns 20,


--- --- --- --- --- --- - --- --- --- --- --- -


Compensation for Damages to Crops of 100,


Afected Farmers/Planters





Revegetation of Affected Areas:


-Nursery for reforestation/afforestation project 20,


-Nursery for fruit bearing trees 20,(


-Reforestation 25,(





Backfillling/Recontouring of Major Excavation 50,(





Rehabilitation of Road Network 70,(





Removal of Oil Contaminated Ground 25,(





QUARTERLY TOTAL (PhP) - 5,000 20,000 45,000 40.000 120,000 20,000 80,000 330.
































L