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 capacity as Corporate Secretary of BASE METALS MINERAL


RESOURCES CORPORATION, a corporation duly organized and


existing under Philippine laws, with office address at the 4th Floor, Trans-


Phil House, Chino Roces Avenue corner Bagtikan Street, Makati City,


after being sworn to in accordance with law, do hereby certify that in a


meeting held on 11 August 1997, the Board adopted the following


resolutions:





RESOLVED that Mr. Frank N. Lubbock, Mr.


Martin Buckingham, Mr. Jim Keogh and Mr. Terrence H.


Byberg be authorized to represent the Company in all


dealings and transactions with the Department of


Environment and Natural Resources, to sign and execute


mineral agreements and all documents in connection with





the mineral properties of the Company, with full power and


authority to delegate and designate representatives and


agents to sign and represent the company.





RESOLVED FURTHER that the following are


authorized representatives of the Company in dealing with


the Department of Environment and Natural Resources in


the entire Philippines:





Norman H. Tiongson Ernesto A. Laoagan


Val. Bongalos , Samuel Afdal


Luc Gatchalian Rolando Amores


Victor Cronologia Chester Obispo


Elizabeth Cruz Roan Dabuet


Fernando Cortez Sergio Sanchez


Francisco Ylagan Danilo Latuga











IN WITNESS WHEREOF, I affix my signature this _nd day of


August 1997 at Makati City.
































15


SUBSCRIBED AND SWORN to before me this_day of April 1997 at Makati


City, affiant exhibiting to me her Community Tax Certificate No. 4786937-D issued at


Manila on 27 January 1997.





uawilO^B-gBXnaRES





NOTARY pyjKLfc


 ANNEX B





Republic of the Philippines


DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES


MINES AND GEO-SCIENCES BUREAU


REGION V, LEGASPI CITY


TECHNICAL DESCRIPTION











OF THE AREA APPLIED/PROPOSED FOR


MINERAL PRODUCTION SHARING AGREEMENT (APSA)-V-0029





APPLICANT: Base Metals Mineral Resources Corporation





SITUATED IN THE:


Barrios of Syndicate, Panique, Bangon and Puro





Municipality of Aroroy


Province of Masbate


Island of Masbate





BOUNDED ON THE:





North: “Elise” B-18, “Sweetheart” B-6, “Eastern Fr.” B-97, “King” B-l, “Have Got” B-


2, “El Oro” B-l00, “El Dinero” B-94, “Nebraska” B-3, “Nancy” B-8, “Panique”


B-99, “Mable” B-7, “Holy Moses” B-4, “Imitation” B-96, “St. Luis” B-95,


“Limestone” B-98, “ Salida Fr.” B-90, “Buena Suerte”, B-60 “Montana” B-91,


“Idaho Fr.” B-92, “Colorado” B-62, “Mountain View” B-86, “Bay View” B-85


mining claims of Atlas Consolidated Mining & Development Corporation and


Timberland.





East : “Grand View”, B-85, “Bay View” B-87, “Mountain View” B-86, “Colorado” B-


62, “Buenavista Fr.” B-84, mining claims of Atlas Consolidated Mining &


Development Corporation, “Point-24” Lla-142254-D mining claim of Kirra


Mining Exploration Co., “Rocky-97” Lla-141986-D mining claim of Moomba


Mining Exploration Co., “Gold-3” DLS-3363-D, “Gold-2” DLS-3921-D, “Gold-


1” DLS-3920-D mining claims of Atlas Consolidated Mining & Dev.


Corporation and Timberland.


South: “Timberland”, “Dabu-3” DLS-4152-D, “Dabu-2” DLS-4151-D mining claims of


Atlas Consolidated Mining and Development Corporation.





West: “Doming” DLS-32-D, “Corazon” DLS-29-D, “Aquarius” DLS-26-D, “Montana”


B-91, “Idaho” B-92, “Aries” DLS-23-D mining claims of Atlas consolidated


Mining & Dev. Corporation. “Columbine” LP-3317-D, “Fraction Fr.” LP-3328-D


mining claim of Masbate Goldfields, Inc.





Beginning at a point marked “1” = 1, DLS-33-D on plan being S.10°21’42” W., 2,846.78 m. from


Triangulation Station Bagadila, 1911-51.





Thence: N.00°05’W., 1,240.77 M. to point 2 la, DLS-30-D


Thence: N.27°31’W., 42.83 M. to point 3 3, LP-2922-D


Thence: N.62°29’ E., 22.25 M. to point 4 lb, DLS-30-D


Thence N. 0°05’W., 986.15 M. to point 5 lb, DLS-27-D


Thence: S .34°50’ E., 68.28 M. to point 6 lc, DLS-27-D


Thence: N.55°06’ E., 100.62 M. to point 7 Id, DLS-27-D


Thence: N.55°12’ E., 199.39 M. to point 8 le, DLS-27-D


Thence: N34°S0’W 1 07.90 M tn nnint Q 1 f m Q.-n.n


Thence: N.24°42’W., 125.51 M. to point 13 = 5, LP-2930-D


Thence: S.55°10’ W„ 45.34 M. to point 14 = 6, LP-2930-D


Thence: N.20°30’W., 205.44 M. to point 15 = 1, DLS-2930-D


Thence: N.59°57’E., 168.80 M. to point 16 = la, LP -24-D


Thence: N.00°05’W., 203.33 M. to point 17 lb, DLS-24-D


Thence: N.45°05’ E., 26.95 M. to point 18 lc, DLS-24-D


Thence: N.31011’W., 116.50 M. to point 19 - 1, LP-2929-D


Thence: N.59°57’ E., 237.48 M. to point 20 = Id, DLS-24-D


Thence: N.44°55’W., 233.12 M. to point 21 le, DLS-24-D


Thence: N.00°05’W., 52.62 M. to point 22 = 2, DLS-24-D


Thence: N.89°55’ E., 44.60 M. to point 23 = 2a, DLS-24-D


Thence: S.31°46’ E., 248.73 M. to point 24 - 2b, DLS-24-D


Thence: N.59°57’ E., 24.58 M. to point 25 - 2c, DLS-24-D


Thence: N.15°13’W., 211.72 M. to point 26 2d, DLS-24-D


Thence: N.89°55’ E., 266.42 M. to point 27 3, DLS-24-D


Thence: S.00°05’ E., 85.77 M. to point 28 = 3 a, DLS-24-D


Thence: S.59°57’W., 179.81 M. to point 29 3b, DLS-24-D


Thence: S.45°45’W., 32.00 M. to point 30 3c, DLS-24-D


Thence: S.33°08’ E., 289.45 M. to point 31 3, LP-2929-D


Thence: S.19°28’ E., 302.40 M. to point 32 3, LP-2928-D


Thence S.59°57’W., 300.00 M. to point 33 - 4, LP-2928-D


Thence: S.30°03’ E., 300.01 M to point 34 2c, DLS-27-D


Thence: N.59°57’E., 7.13 M. to point 35 = 2d, DLS-27-D


Thence: S.26°47’ E., 53.96 M. to point 36 = 3 a, DLS-27-D


Thence: S. 0°05’E., 99.74 M. to point 37 - 3b, DLS-27-D


Thence: N66°08’W., 198.27 M. to point 38 = 3c, DLS-27-D


Thence: S.34°50’ E., 11.06 M. to point 39 = 3d, DLS-27-D


Thence: S.39°36’ E., 108.16 M. to point 40 - 3e, DLS-27-D


Thence: S.54°25’W., 8.99 M. to point 41 3f, DLS-27-D


Thence: S.55°12’W., 199.39 M. to point 42 3g, DLS-27-D


Thence: S.23°51’W., 68.09 M. to point 43 - 3h, DLS-27-D


Thence: S.66°08’ E., 299.99 M. to point 44 = 3i, DLS-27-D


Thence: N.23°50’E., 64.58 M. to point 45 3j, DLS-27-D


Thence S.18°10’W., 78.95 M. to point 46 3k, DLS-27-D


Thence: S.71°52’ E., 30.84 M to point 47 31, DLS-27-D


Thence: S. 0°05’ E., 81.88 M. to point 48 3m, DLS-27-D


Thence: N.89°55’E., 152.60 M. to point 49 3n, DLS-27-D


Thence: N.46°51’E., 34.32 M. to point 50 = 3, LP-2924-D


Thence: S.71°52’ E., 82.12 M. to point 51 4, LP-2924-D


Thence: N.18°08’E., 124.27 M. to point 52 - 3, LP-2923-D


Thence: S.39°42’ E., 203.64 M. to point 53 = 4, LP-2923-D


Thence: N.50°19’E., 3.96 M. to point 54 = 5, LP-2923-D


Thence: S.44°39’ E., 375.64 M. to point 55 3, LP-2925-D


Thence: S.45°21’W., 227.01 M. to point 56 = 4, LP-2925-D


Thence: N43°09’W., 297.23 M. to point 57 = 1, LP-2925-D


Thence: S.46°51’W., 182.76 M. to point 58 = 1, LP-2924-D


Thence: S.46°50’W., 94.79 M. to point 59 = 3b, DLS-30-D


Thence: S.27°31’ E., 104.45 M. to point 60 = 3c, DLS-30-D


Thence: S.43°09’ E., 198.56 M. to point 61 - 3d, DLS-30-D


Thence: N.46°51’E., 231.83 M. to point 62 = 3e, DLS-30-D


Thence: S.44°39’ E., 6.44 M. to point 63 3f, DLS-30-D


Thence: S.45°21’W., 291.61 M. to point 64 3g, DLS-30-D


Thence: N27°31’W., 220.79 M. to point 65 = 3i, DLS-30-D


Thence: N27°31’W., 104.45 M. to point 66 = 3j, DLS-30-D


 Thence: S.27°31’ E., 300.00 M. to point 70 = 1, LP-2922-D


Thence: S.62°29’W., 300.00 M. to point 71 = 2, LP-2922-D





Thence: S.27°31’ E., 300.00 M. to point 72 = 8, LP-2920-D


Thence: N62°29’ E., 313.00 M. to point 73 = 1, LP-2920-D


Thence: S.05°43’ E., 303.07 M. to point 74 = 9 LP-2920-D


=


Thence: S.84°16’W., 44.90 M. to point 75 3, LP-2920-D


Thence: N63°05’W., 127.87 M. to point 76 = 4, LP-2920-D


Thence: S26°55’W., 304.80 M. to point 77 = 3d, DLS-33-D


Thence: S.63°05’E., 304.80 M. to point 78 = 3e, DLS-33-D





Thence: N26°55’ E., 254.90 M. to point 79 = 3f, DLS-33-D


Thence: N26°50’ E„ 49.90 M. to point 80 = 4, LP-2919-D





Thence: N63°05’W., 176.93 M. to point 81 = 5, LP-2919-D


Thence: N84°l7’ E., 259.88 M. to point 83 = 6, LP-2919-D


Thence: S.30°20’E., 232.49 M. to point 84 = Id, DLS-34-D





Thence: N59°40’E., 300.00 M. to point 85 le, DLS-34-D


Thence: S.30°20’E., 4.80 M. to point 86 = If, DLS-34-D


Thence: N59°40’ E., 304.80 M. to point 87 = lg. DLS-34-D


Thence: N30°20’W., 304.80 M. to point 88 = 2, LP-2917-D


Thence: S59°40’W., 227.85 M. to point 89 = 3, LP-2917-D





Thence: N45021’ E., 254.37 M. to point 90 = 4, LP-2917-D


Thence: N45°21’ E., 300.00 M. to point 91 = lc, DLS-31-D


Thence: N44°39’W., 375.65 M. to point 92 = LP-2921-D


1,


Thence: N45°21’ E., 300.00 M. to point 93 = 2, LP-2921-D


Thence: N44°39’W., 600.00 M. to point 94 = 4, LP-2927-D





Thence: S.45°21’W., 2.85 M. to point 95 = 5, LP-2927-D


Thence: N39°42’W., 150.56 M. to point 96 = 6, LP-2927-D


Thence: N45°21’ E., 290.72 M. to point 97 = 1, LP-2927-D


=


Thence: S.44°29’ E., 300.00 M. to point 98 2, LP-2927-D


Thence: S.44°39’ E., 300.00 M. to point 99 = 4, LP-2926-D


Thence: S.45021’W., 289.79 M. to point 100 = 2, DLS-31-D


=


Thence: N89°54’ E„ 348.81 M. to point 101 2a, DLS-31-D


Thence: N89°55’ E., 100.00 M. to point 102 3, DLS-31-D


Thence: S. 0°05’ E., 620.00 M. to point 103 3b, DLS-31-D





Thence: S. 0°06’ E., 301.81 M. to point 104 4, DLS-31-D


Thence: S. 0°05’ E„ 600.00 M. to point 105 = 3b, DLS-34-D


Thence: S. 0°06’ E., 321.80 M. to point 106 = 4, DLS-34-D


Thence: S.89°55’W., 605.83 M. to point 107 = 4b, DLS-34-D


=


Thence: S.89°54’W., 426.38 M. to point 108 4a, DLS-33-D


Thence: S.30°20’ E., 19.42 M. to point 109 = 4, LP-2918-D


Thence: S.59°40’W., 300.00 M. to point 110 3, LP-291 S-D


Thence: N30°20’W., 194.38 M. to point = 4d, DLS-33-D


111


Thence: S.89°55’W., 432.39 M. to point 1 = 1, DLS-33-D


which is the point of beginning.














Containing an area of 289.9466 Hectares.


 ANNEX C


\_








TWO (2) -YEAR EXPLORATION WORK PROGRAM


FOR THE PROPOSED APPLICATION FOR


MINERAL PRODUCTION SHARING AGREEMENT (APSA-V-0029) OF


BASE METALS MINERAL RESOURCES CORPORA TION (BMMRC)


LOCATED IN BARANGAYS BANGON, PURO, SYNDICATE, PANIQUE AND CAPSAY,


MUNICIPALITY OF AROROY,


PROVINCE OF MASBATE








I. INTRODUCTION:


Mining Claims areas applied are immediate areas around the perfected mining claims of Base


Metals Mineral Resources Corporation (BMMRC) close to the general vicinity of the planned


operating center of the same company.


These areas have known ore potential mainly quartz vein extensions from active mining areas


by the previous mine operator, Atlas Consolidated Mining and Development Corporation (ACMDC).


II. GENERAL INFORMATION:


Name of Proponent/Applicant


: BMMRC


Mailing Address : 4th Floor Trans-Phil House Bagtikan St.,


Cor. Chino Roces Ave., Makati City


Ore Minerals to be explored : Gold, copper, sulfides, etc.





Total Area : 289.9466 Hectares


Name of application : Mineral Production Sharing Agreement





Project Location : Barangays Bangon, Puro, Syndicate,


Panique, and Capsay, Municipality of


Aroroy, Province of Masbate


III. PROJECT LOCATION:








The gold-silver prospect applied for is situated at Barangays Bangon, Syndicate,


Panique and Capsay within the municipal jurisdiction of Aroroy, province of Masbate. It is


about 6 kilometers Southwest of Aroroy Poblacion.


The area boundary is at 12°27’30” to 12°29’30” latitude and at 123°23’00” to


123°24’30” longitude.





IV. CLIMATE AND VEGETATION:


The climate is generally dry during the months of February to May, while the rainy


season sets in June and continues up to January.


Vegetation are generally cogonal, mostly pasture lands on the Western side, and





coconut plantation, patchy upland rice and ipil-ipil trees on the eastern side. Wild bananas


thrive anywhere. Forested areas are patchy, localized in few areas only.


V. PROPOSED TWO-YEAR EXPLORATION WORK PROGRAM:





The two (2) years exploration work program presents the phases of activities to be


undertaken on the applied area for a span of two (2) years.








FIRST YEAR





Previous exploration activities had already defined the areas for drilling. Reverse


circulation (RC) drilling will be the main activity on the first year.





Drilling will be pursued mainly at the Northern and Southern end of Colorado Vein No.


5 primarily to block additional mineable ore reserves.


Priority drilling will likewise focus in confirming the average grade of the various


waste dumps.


Dumps drilling is in line with the current BMMRC study of recovering the gold





contained from this low grade materials for either Heap Leaching process or large capacity CIP


plant fed.


The combined RC drilling meterage for the first year is 6,822 broken down as follows.








No. of Holes Meterage





Colorado Vein No. 5 (north) 14 724


Colorado Vein No. 5 (South) 26 1,480


Main Vein Dumps 98 2,219


Basalt Dump 90/60 77 1,672


Colorado Dump 270 36 727


Sub - Total 251 holes 6,822





(See attached details of the proposed drill holes).








SECOND YEAR











Geologic mapping, trenching, sampling and drilling will be the main actiivities on the


first half of the year. Surface trenching and sampling will be undertaken at the Grannd View


subparallel Vein structure projected for about 300 meters strike length. A total of 10 trenches


(20 meters long each) will be dug at 30 meters interval.


Similarly, a total of 8 trenches (15 meters long each), at 30 meters apart will be dug


following about 250 meters Boston Vein extension to the south. This two (2) areas are highly


prospective for additional ore reserve.


Diamond drilling will be the main activities in the second half of the year. Core drilling





method will be required to drill the deeper sections of the known veins and extensions at Dabu-


 Summary of Activities











AREA NO. OF TRENCHES METERAGE


Grand View 10 200 m


Boston 8 120 m


Sub- total 18 320 in











Drilling No. of Drill Holes Meterase


Dabu-Panique 8 1,070 m


Binstar U.G. 17 1,945 m


Sub- total 25 3,015 m











VI. TWO (2) - YEAR WORK PROGRAM BUDGET SUMMARY:











EXPLORATION EXPENSES YEAR 1 YEAR 2 TOTAL





Labor and Supervision 522,000 757,000 1,279,000





Samples/ Assay Cost 500,000 300,000 800,000


Field Supplies 120,000 120,000 240,000





Contract RC Drilling 5,500,000 5,500,000


Contract Core Drilling


12,000,000 12,000,000


Total 6,642, 000 13,177,000 19,819,000











VII. ENVIRONMETAL IMPACTS:


In as much exploration activities would only be undertaken, its impact to the


environment is expected to be minimal although the following alternatives may


occur.


a) Vegetation might have to be removed to give way to trails, traverses, survey


Stations, test pits, trenches, etc., as soon as exploration works commences.


b) Introduction of exploration drill holes, test pits, trenches and other excavation


workings may disturbed, the topography of the area. This will be both minimal


and strongly controlled limited.





The following measures will be undertaken to mitigate the impact of the


exploration works to the environment.





a) Cutting of trees should be abvoided as much as possible.


b) Construction of roads and exploration sites would be in a manner as to avoid





ugly cuts in the landscape.


c) All trenches, test pits and open excavation would be refilled after exploration


works.


d) Severe restriction and avoidance of vegatation clearance by fire.


e) Sanitary condition would be maintained in all camp sites.





f) A good public relation in the area would be adopted and enforced.











Prepared by :








-C' C(T~


RAMON S. VELASCO


Corporate Geologist


PTRNo. 5713925 U


Issued on September 1, 1997


Issued at Aroroy, Masbate


 COLORADO PROPOSED DIAMOND DRILL HOLES





DRILL HOLE PANEL COLLAR


NUMBER SECTION NORTHING EASTING AZIMUTH ELEVATION INCLINATION DEPTH


5-47N-A 47N 27278 29887 245° 195.5 50° 50


cn


o


5-47N-B 47N 27278 29887 65° 197.5 o 30


5-45N-A 45N 27258.5 29913.5 245° 201.5 50° 70


5-43N-A 43N 27216 29897 245° 185.5 50° 50


5-41N-A 41N 27207 29945 245° 193.5 45° 70


5-39N-A 39N 27270 29942 245° 211 50° 50


5-39N-B 39N 27189 29975 245° 213.5 50° 39


5-37N-A 37N 27137 29941 245° 217 50° 50


5-35N-A 35N 27130 29992 245° 240 50° 50


5A-19N-A 19N 26906 30082 245° 300 -60° 60


5A-15N-A 15N 26850 30105 245° 311 -50° 60


5A-7N-A 7N 26730 30135 245° 285 50° 50


5A-5N-A 5N 26708 30155 245° 277 55° 45


5A-3N-A ' 3N 26688 30183 245° 269.5 50° 50





5-3S-A 3S 26597 30205 245° 206.2 50° 45


5-5S-A 5S 26574 30224 245° 202 50° 40


5-7S-A 7S 26545 30234 245° 195 50° 30


5-7S-B 7S 26565 30271 245° 196.5 50° 75


5-9S-A 9S 26528 30266 245° 195 50° 50


5-11S-A 11S 26500 30280 245° 182 60° 50


5-13S-A 13S 26467 30278 245° 163 50° 30


5-13S-B 13S 26477 30298 245° 167 60° 65


5-15S-A 15S 26446 30302 245° 143 50° 50


5-17S-A 17S 26417 30315 245° 143 50° 40


5-19S-A 19S 26390 30326 245° 137 50° 30


5-19S-B 19S 26401 30346 245° 126 50° 50


o


O


5-21S-A 21S 26362 30338 245° 131 LD 30


5-21S-B 21S 26372 30357 245° 115 50° 50


5-23S-A 23S 26350 30379 245° 104 50° 75


5-25S-A 25S 26331 30406 245° 105 50° 90


5-27S-A 27S 26305 30421 245° 100 50° 90


5-29S-A 29S 26279 30405 245° 29 50° 80


o cn


LO o


5-31S-A 31S 26218 30382 CD 100 o 80


5-33S-A 33S 26218 30448 245° 58 50° 55


5-35S-A 35S 26197 30472 245° 81 55° 65


5-37S-A 37S 26168 30483 245° 62 50° 55


o


o


5-39S-A 39S 26151 30514 245° 57 LD 60


5-41 S-A 41S 26110 3D50R PR0 c r\o


 MASBATE MINE DUMP STUDY


COLORADO PROPOSED RC DRILL HOLE


A. Phase 1 RC Drilling @ 50.0 m. Drill Spacing


DH No. NORTHING EASTING METERAGE (M.) ELEVATION (M.)


CDA-AA2 27132.366 30113.520 24 270


CDA-AA4 27181.834 30122.041 22 268


CDA-B1 27088.476 30075.428 19 271


CDA-B3 27138.195 30083.565 28 260


CDA-B5 27187.974 30092.899 31 261


CDA-B7 27235.836 30101.405 20 264


CDA-D1 27089.665 30045.072 20 266.8


CDA-D3 27139.744 30053.665 20 243.8


CDA-D5 27188.703 30062.342 27 241.5


CDA-D7 27238.502 30071.013 18 246.5


CDA-F1 27095.623 30015.421 12 253.5


CDA-F3 27144.683 30023.919 19 234


CDA-F5 27194.255 30032.822 20 222


CDA-F7 27243.647 30041.496 10 225


CDA-H1 27125.029 29990.040 13 240


CDA-H3 3 27174.579 29998.942 30 226


CDA-H5 1 27224.377 30007.970 10 205.5


CDA-J1 2 27180.073 29968.964 20 216.2


CDA-J2 1 27229.594 29977.943 _____10 __ 192.8


CDA-L1 A 27223.513 29946.389 15 184


CDA-LN1 1 27242.433 29919.170 13 176


Total Number of Holes - 21 holes


Total Meterage - 401 meters


B. Phase II RC Drilling (In-Fill) @ 25.0 m. Interval


DH No. NORTHING EASTING METERAGE (M.) ELEVATION (M.)


CDB-AA1 27107.899 30109.131 17 268.2


CDB-AA3 27156.577 30117.682 24 268


CDB-AA5 27206.069 30126.152 17 268


CDB-B2 27112.865 30079.563 29 { 270


CDB-=B4 27162.411 30088.440 26 254


CDB-B5 27211.802 30096.911 32 267.8


CDB-D2 27114.564 30049.356 22 257


CDB-D4 27163.342 30057.602 22 236


CDB-D6 27213.629 30066.779 28 248


CDB-F2 27119.530 30019.815 18 245.5


CDB-F4 27168.870 30028.362 25 228.8


CDB-F6 27219.180 30037.131 13 220


CDB-H2 27150.312 29994.551 13 229


CDB-H4 27200.190 30003.426 20 208


o •


OJ


CDB-J3 27205.535 29973.601 _i 196.5


 MASBATE DUMP STUDY


MAIN VEIN PROPOSED RC DRILL HOLE


DH No. NORTHING EASTING DEPTH (M.) ELEVATION (M.)


MVDA-B2 24657.912 30568.988 29 77.3


MVDA-B4 24701.645 30593.939 28 90


MVDA-B6 24535.662 30498.962 16 101.5


MVDA-B8 24483.435 30467.760 15 120


MVDA-C1 24667.048 30516.819 40 90


MVDA-C3 24711.036 30542.482 46 110


MVDA-C5 24754.057 30567.026 28 112


MVDA-D1 24691.948 30473.645 34 95


MVDA-D3 24736.445 30498.901 46 105


MVDA-D5 24779.619 30524.564 17 110


MVDA-E2 24717.561 30430.928 34 112


MVDA-E4 24760.989 30456.235 15 108


MVDA-F1 24723.900 30377.438 27 114


MVDA-G1 24710.101 30312.413 20 120


MVDA-G2 24731.968 30324.456 20 119.2


MVDA-11 24649.449 30161.781 26 131


MVDA-I3 24691.556 30186.376 17 134


MVDA-I5 24735.645 30211.175 23 150


MVDA-I7 24778.667 30236.431 19 150.5


MVDA-J10 24790.803 30186.295 19 104


MVDA-J2 24617.090 30086.135 22 130


MVDA-J4 24660.823 30111.493 38 131


MVDA-J6 24703.590 30135.478 21 151


MVDA-J8 24747.375 30160.937 27 152


MVDA-K1 24642.651 30043.316 28 94


MVDA-K3 24685.571 30067.861 28 117


MVDA-K5 24728.898 30093.066 19 128


MVDA-K7 24772.123 30118.068 12 133.5


MVDA-K9 24816.060 30143.324 7 140


MVDA-L2 24710.776 30024.941 3 99.7


MVDA-L4 24753.900 30050.400 12 118.4


MVDA-M1 24822.127 30031.872 15 115


MVDA-M3 24865.403 30056.569 15 134.5


MVDA-M4 24949.463 30105.100 7 158


DH No. NORTHING EASTING DEPTH (M.) ELEVATION (M.)


MVDA-N1 24846.976 29988.495 12 108


MVDA-N3 24890.557 30013.243 19 135


MVDA-N5 24977.262 30063.908 14 159


MVDA-01 24872.080 29945.880 21 105.5


MVDA-03 24915.153 29970.679 30 134


MVDA-05 24959.242 29995.426 20 137


MVDA-P2 24897.182 29902.159 27 102


MVDA-P3 24941.118 29926.*938 45 134


MVDA-P5 24983.480 29952.032 30 134.4


MVDA-Q2 24922.120 29859.137 33 97


MVDA-Q4 24966.260 29884.067 20 100.5


MVDA-Q6 25030.000 29920.868 12 106


MVDA-R1 24947.311 29816.165 24 82.3


MVDA-R3 24991.146 29841.046 24 95.5


MVDA-R5 25032.994 29865.330 27 108


MVDA-R7 25077.292 29891.022 26 106


MVDA-S1 25015.782 29798.535 20 82


MVDA-S3 25058.850 29822.760 20 89


MVDA-S5 25102.280 29847.949 18 87.3


MVDA-S7 24144.589 29872.789 8 88


 MASBATE DUMP STUDY


BASALT DUMP PROPOSED RC DRILL HOLE


A. Phase 1 RC Drilling @ 50.0 m. Drill Spacing


DH No. NORTHING EASTING METERAGE (M.) ELEVATION (M.)


BDB-02-2 25495.892 30800.631 18 54


BDB-03-1 25434.599 30750.522 25 72


BDB-03-3 25485.213 30750.694 31 72.3


BDB-03-5 25535.011 30750.388 39 74


BDB-04-2 25443.597 30700.591 23 72


BDB-04-4 25494.565 30700.557 30 72.5


BDB-04-6 25544.518 30700.607 37 72


BDB-05-2 25440.468 30650.582 15 68.5


BDB-05-4 25490.750 30650.578 25 72


BDB-05-6 25540.829 30650.525 23 62


BDB-06-2 25462.024 30600.726 15 69


BDB-06-4 25512.255 30600.595 22 66


BDB-07-2 25461.819 30550.775 14 69.5


BDB-07-4 25511.465 30550.623 11 59.4


BDB-08-2 25463.085 30500.358 17 82


BDB-08-4 25512.454 30500.614 12 62.5


BDB-09-1 25363.411 30450.916 18 93.5


BDB-09-3 25412.370 30450.615 29 89


BDB-09-5 25462.424 30450.715 28 81


BDB-10-2 25332.904 30400.897 21 104.8


BDB-10-4 25382.881 30400.819 30 112


BDB-10-6 25432.807 30400.716 _______19_____________ 95


BDB-10-8 25482.479 30400.589 25 84.2


BDB-11-2 25457.869 30350.584 30 110


BDB-11-4 25507.746 30350.685 30 93.5


BDB-12-2 25496.610 30300.750 29 114


BDB-12-4 25545.977 30300.727 28 106.5


BDB-13-1 25466.993 30250.878 15 120.5


BDB-13-3 25517.224 30250.697 20 111.5


BDB-13-5 25566.973 30250.747 12 104


BDB-14-2 25467.017 30200.824 25 129


BDB-14-4 25517.248 30200.846 15 118


BDB-14-6 25567.048 30200.795 10 118


BDB-15-2 25459.974 30150.916 20 142





Total Number Of Holes = 35 holes


 MASBATE DUMP STUDY


BASALT DUMP PROPOSED RC DRILL HOLE


B. Phase II RC Drilling (In-Fill) @ 25.0 m. Interval


DH No. NORTHING EASTING METERAGE (M.) ELEVATION (M.)


BDA-02-1 25470.112 30800.180 15 54.5


BDA-02-3 25521.006 30800.426 17 50.7


BDA-03-2 25459.867 30750.367 28 72


BDA-03-4 25509.843 30750.162 35 73


BDA-03-6 25559.186 30750.291 24 57


B DA-04-1 25418.783 30700.184 19 71.5


BDA-04-3 25468.864 30700.385 26 72.5


B DA-04-5 25519.476 30700.277 33 72


BDA-04-7 25569.453 30700.148 24 57


BDA-05-1 25415.351 30650.355 14 69.7


BDA-05-3 25465.226 30650.353 21 71.5


BDA-05-5 25515.508 30650.223 30 72


BDA-05-7 25565.815 30650.092 21 59.5


BDA-06-1 25436.575 30600.323 13 71


BDA-06-3 25486.069 30600.273 17 66


BDA-06-5 25537.342 30600.136 20 64


BDA-07-1 25436.980 30550.343 14 76


B DA-07-3 25486.956 30500.189 17 68


BDA-08-1 25437.028 30500.213 21 90.2


BDA-08-3 25487.514 30500.309 _ _ 12 71.5


BDA-09-2 25387.914 30450.384 25 60


BDA-09-4 25437.001 30450.337 24 92


BDA-09-6 25487.029 30450.233 18 81.5


BDA-10-1 25308.190 30400.108 25 70


BDA-10-3 25357.914 30400.260 23 116.8


BDA-10-5 25408.324 30400.307 28 106


BDA-10-7 25457.718 30400.385 23 108.5


BDA-10-9 25507.898 30400.305 27 91.5


BDA-11-1 25432.905 30350.331 24 83.5


BDA-11-3 25482.780 30350.330 25 115.5


BDA-11-5 25533.215 30350.325 23 98


BDA-12-1 25471.975 30300.342 20 113.5


B DA-12-3 25522.028 30300.289 _________34........_ 114


BDA-12-5 25571.142 30300.369 21 102


BDA-13-2 25492.590 30250.441 15 112


B DA-13-4 25542.491 30250.389 22 112


BDA-13-6 25592.721 30250.259 10 105.5


BDA-14-1 25442.255 30200.595 23 134


B DA-14-3 25493.021 30200.588 20 121.5


BDA-14-5 25542.336 30200.387 13 118


BDA-14-7 25592.416 30200.537 15 128


DIO A 1C 4 o r* .4 o r- ------- -


 BASE METALS MINERAL RESOURCES CORPORATION


MASBATE GOLD MINES





PROPOSED DUMPS RC DRILL HOLES








PHASE -i PHASE-II COMBINED


AREA NO. OF HOLES METERAGE NO. OF HOLES METERAGE NO. OF HOLES METERAGE





MAIN VEIN





Dump 90


Dump 130 HW 15 382 12 278 27 660


Dump 110 SE 14 395 12 319 26 714


PW Dump -1 7 105 8 156 15 261


PW Dump - 2 17 341 13 243 30 584





Sub-Total 53 1,223 45 996 98 2,219





■DAS ALT





Dump 90 / 60 34 761 43 911 77 1,672





COLORADO





Dump 270 21 401 15 326 36 727





TOTAL 108 2,535 103 2,083 211 4,618


 MASBATE DUMP STUDY


MAIN VEIN PROPOSED RC DRILL HOLE


DH No. NORTHING EASTING DEPTH (M.) ELEVATION (M.)


MVDB-B1 24636.912 30556.453 20 63.8


MVDB-B3 24680.187 30581.236 31 84.5


MVDB-B5 24724.230 30606.828 16 89


MVDB-B7 24512.952 30484.811 13 108


MVDB-C2 24689.610 30529.266 45 102


MVDB-C4 24732.481 30554.458 34 106


MVDB-C6 24776.217 30579.798 19 114


MVDB-D2 24714.036 30485.739 38 104.3


MVDB-D4 24757.419 30511.538 28 111


MVDB-E1 24695.953 30418.034 32 105


MVDB-E3 24738.824 30443.125 26 112


MVDB-F2 24745.919 30390.295 17 114


MVDB-I2 24670.413 30173.094 19 131


MVDB-I4 24714.051 30198.943 12 134


MVDB-I6 24755.946 30222.667 21 150.2


MVDB-J1 24596.603 30073.264 12 95.7


MVDB-J3 24640.237 30098.655 37 122


MVDB-J5 24682.748 30123.138 30 132


MVDB-J7 24726.431 30148.275 21 139.5


MVDB-J9 24768.434 30172.812 24 152


MVDB-K2 24664.717 30055.637 24 99


MVDB-K4 24707.736 30080.116 20 121


MVDB-K8 24794.288 30130.140 12 138.5


MVDB-L1 24690.213 30012.561 6 97


MVDB-L3 24732.673 30037.095 5 107.4


MVDB-M2 24843.959 30043.997 19 127


MVDB-N2 24869.151 30001.075 20 127


MVDB-N4 24912.323 30025.707 16 138


MVDB-02 24894.546 29958.000 27 124


MVDB-04 24937.413 29982.684 23 135


MVDB-06 24980.997 30007.974 15 141


DH No. NORTHING EASTING DEPTH (M.) ELEVATION (M.)


MVDB-P1 24875.594 29889.487 30 97


MVDB-P4 24961.892 29939.411 37 134


MVDB-P6 25004.707 29963.994 25 135


MVDB-Q1 24900.734 29846.312 28 85.3


MVDB-Q3 24943.655 29871.504 30 102


MVDB-Q5 24987.235 29896.234 18 103


MVDB-Q7 25053.326 29934.901 20 112.2


MVDB-R2 24968.184 29828.180 32 96.8


MVDB-R4 25012.071 29853.264 17 94


MVDB-R6 25055.500 29878.301 25 106


MVDB-S2 25037.061 29810.497 20 85.5


MVDB-S4 25080.797 29835.836 20 86.5


MVDB-S6 25123.561 29860.317 12 88


 BINSTAR PROPOSED DIAMOND DRILL HOLES





DRILL HOLE PANEL COLLAR


NUMBER SECTION NORTHING EASTING AZIMUTH ELEVATION INCLINATION DEPTH





BIN-40N-1 40N 30685 25256 225° 96 m. -45° 200 m.





BIN-36N-1 36N 30608 25203 225° 82.5 m. -45° 200 m.





BIN-32N-1 32N 30600 25136 225° 80 m. -45° 160 m.





BIN-28N-1 28N 30617 25075 225° 77 m. -45° 150 m.





BIN-24N-1 24N 30640 25032 225° 59.5 m. -45° 160 m.





B1N-20N-1 20N 30672 24975 225° 64 m. -45° 190 m.





BIN-16N-1 16N 30628 24887 75° 104.5 m. -60° 120 m.





BIN-14N-1 14N 30645 24860 225° 103 m. -55° 95 m.





BIN-8N-1A 8N 30670 24774 75° 85 m. -45° 95 m.





BIN-8N-1B 8N 30726 24800 75° 86 m. -45° 45 m.





BIN-4N-1A 4N 30671 24710 75° 69 m. 55° 60 m.





BIN-4N-1B 4N 30694 24720 225° 77 m. 60° 100 m.








o


O


BIN-2S-1A 2S 30707 30707 75° 53 m. CD 70 m.





BIN-2S-1B 2S 24605 24605 225° 53 m. 70° 75 m.





BIN-6S-1A 6S 30749 30749 75° 54 m. 50° 55 m.





BIN-6S-1B 6S 24572 24572 225° 54 m. 60° 60 m.





BIN-8S-1 8S 30790 24567 225° 74 m. 45° 110 m.


 DABU-PAN1NQUE PROPOSED DIAMOND DRILL HOLES





DRILLHOLE PANEL COLLAR


NUMBER SECTION NORTHING EASTING AZIMUTH ELEVATION INCLINATION DEPTH





DP-8S-1 8S 30181 24287 65° 45.0 m. 45° 90 m.





DP-12S-1 12S 30221 24235 65° 45.0 m. 45° 90 m.





DP-16S-1 16S 30270 24193 65° 45.0 m. 45° 100 m.





DP-20S-1 20S 30317 24148 65° 41.0 m 45° 110 m.





DP-24S-1 24S 30350 24098 65° 38.5 m 45° 160 m.





DP-28S-1 28S 30467 24086 65° 78.0 m 45° 180 m.





DP-32S-1 32S 30523 24086 65° 83.0 m 45° 190 m.





DP-36S-1 36S 30593 24015 65° 123.0 m 45° 150 m.


 Bi i METALS MINERAL RESOURCES CORPOi .mTION


MASBATE GOLD MINES


TWO YEAR EXPLORATION PROGRAM











FIRST YEAR SECOND YEAR


ACTIVITIES 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 0 11 12 REMARKS





mm/,


)rill Site Preparation ilP Drill site surveying - Bulldozing





1C Drilling Shcedule include mobilization and downtime





HP


Drill Site Preparation PHI Drill site surveying - Bulldozing





1C Drilling Schedule include mobilization and downtime





wm


Preparation W/W Drill site surveying - Bulldozing





g Schedule include mobilization and downtime





j Mapping wm Detailed mapping and trench lay-out





;hing/Sampling ■ Trenching at 60 m. apart/infill at 30 m.





insion - Mapping wm Detailed mapping & trench lay-out





rnsion - Trenching/Sampling Trenching at 60 m. apart/infill at 30 m.





up


nd - Drill Site Preparation mmm, Drill site surveying - Bulldozing





id - Diamond Drilling Schedule include mobilization and downtime





mm


1 - Drill Site Preparation wm. Drill site surveying - Bulldozing





- Diamond Drilling Schedule include mobilization and downtime


MGB Form No. 16-1 Annex t>





Republic of the Philippines


Department of Environment and Natural Resources


MINES AND GEOSCIENCES BUREAU


North Avenue, Diliman, Quezon City








ENVIRONMENTAL WORK PROGRAM











NAME AND ADDRESS OF PROJECT PROPONENT


1.1 Name of Proponent : Base Metals Mineral Resources Corporation





1.2 Address of Proponent tli


Office : 111


4 Floor Trans Phil House Bldg.


1177 Chino Roces Ave. cor. Bagtikan St.


Makati City 1231


Minesite : Sitio Bari-is, Puro, Aroroy, Masbate, 5414





Tel. No. : 896-2041


Fax No. : 895-1356








2.0 TYPE AND NATURE OF PROJECT


2.1 Project Description





This MPSA application (APSA-V-0029) is for a gold exploration project over


four potential areas identified as Holy Cross, Basalt/ Holy Moses, Colorado


areas and Libra, all in Aroroy, Masbate.


The objectives are; 1) To block more ore reserves and supplement the ore


reserve requirement for the Feasibility Study; and 2) To evaluate the lower


extension of the orebody for underground operation.


The amount needed to implement the proposed exploration work is





approximately PhP 21.8009 Million. This includes budget for the


environmental work program and socio-economic development programs,


distributed yearly as follows:


Exploration Evironmental Total


Work work





First Year : 6.6420 0.6642 7.3062


Second Year : 13.1770 1.3177 14.4947


Total : 19.8190 1.9819 21.8009








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 Brgys. Bangon, Syndicate and Panique


within the Municipality of Aroroy, Province of Masbate and bounded by the


_rn ° OP ’ CO ” ^ mo ">A > onn---j m o X- ■too


 From Manila, the area is accesible by air to Masbate, Masbate. Daily regular


flights are available and travel time is about one hour and twenty minutes.





From Masbate town proper, the area is accessible by land thru a 67 kms.


gravel provincial roads. Pump boats from Masbate town to Aroroy town are


also available.








3.2 Total Area Covered by the Application


The site covers twenty (20) mining claims of 289.9466 hectares broken down





as follows (see attached map on Annex A):


A. Claims with Leased Contract issued after the 1987 constitution








Claims Area (hectares)





1. King Fr. 2.641


2. Malino 9.000


j. Ed Fr. 5.447


4. Horblendite Fr. 6.782


5. Kate 9.000


6. Pearl 9.000


7. Lewes 9.000


8. Andesite 8.958


9. Cripple Creek 8.452


10. Independence 9.000


11. Anaconda 9.000








B. Claims with Declaration of Location/Mining Lease Application





Claim Areas (hectares)








1. Oak Fr. 2.6153


2. Basalt 8.8427


-> Serpentine 6.5666


J.


4. Gemini 6.3812


5. Pisces 20.5035


6. Libra 24.4292


7. Leo 30.8840


8. Angeles 62.8669


9. Virgil io 40.5778





Total Area (hectares) = 289.9466


Location of Claims - Barangays Bangon, Syndicate and Panique.





Kinds of Minerals = Municipality of Aroroy. Province of Masbate


Gold. Silver and other Associated Minerals


Total No. of Claims = 20








4.0 DESCRIPTION OF THE EXISTING ENVIRONMENT WHERE WORK IS


PROPOSED TO BE UNDERTAKEN :


4.1 Land Environment





Thp infnrmntinn and data nrovidpd herein arp hasprl nn avaiDhlp hagplinp


4.1.1 T opography/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.


4.1.2 Land Use/Capability


The proposed 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.


Makeshifts 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 project 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 part of the applied area are characterized


by flat to very gently sloping grounds, mostly grasslands and patchy


ricefields in alluvium soil.





Water Environment


4.2.1 Water Quality


Monthly water samplings are made on practically all sources of water.


This is made 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 from March to


October 1997 for reference.


 ENVIRONMENTAL WATER SAMPLES


Average Results of Water Samples from March to October 1997


Total Cyanide PH TSS TDS GOLD MERCURY





(ppm) (mg/I) (mg/l) (ppm) (ppm)


Max. Tolerable Limits >> <.001 6.0-9.0 50 1,000 0.0020


LOCATION


1. Syndicate Area NIL 7.44 32.63 120 0 0.0030


2. Earth Dam NIL 7.43 35.71 131.25 0 0


3. Pump House NIL 7.46 46.38 182.50 0 0.0010


4. Old Tailings Pond NIL 7.40 - - 0 -


5. Pajes Well NIL 7.16 - - 0 -


6. Medina Well NIL 7.23 - - 0 -


7. Guinobatan River (downstream) NIL 7.49 - - 0 -


8. Bigno Well NIL 6.79 - - 0 -


9. Canencia Well NIL 6.85 - - 0 -


10. Sujede Well NIL 6.90 - - 0 -


11. Paraiso Well NIL 6.99 - - 0 -


12. Ducot Well NIL 6.91 - - 0 -


13. Emergency Tailings Pond NIL 7.30 - - 0 0.0025


14. Anseca Pool NIL 7.80 - - 0.01 0








4.2.2 Hydrolog>





During the rainy season, run-off water in the area is high due to


frequent typhoons and prolonged monsoon rains aggravated by rugged


topography. The watershed of the Bangon and Guinobatan major river


areas drained essentially by denderitic drainage network which flows


Northwestward to Port Barrera Sea. Rare instances of rivet? swelling


and flooding occurs, normally at the height of strong typhoons. The


Guinobatan River is the main source of both domestic and industrial


water of the local residents and the mining community all year round.


Annual water measurement were obtained from a weir installed


midstream of the Guinobatan River. From historic record, the annual


average water inflow during the rainy season far exceeds 6000 gpm,


while dry season average inflow is about 1000 gpm. Excellent climate


and uninhabited watershed areas contribute to continues water supply


to the inhabitants. The proposed exploration 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


or PAG-ASA. Masbate Station, rainfall amount from 1961 to 1995.


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 Geoniorphology


flanked by relatively flat terrain which are blanketed by agglomerates,


lithified tuff and some volcanoclastics about the watermost flank.


These data are based on the feasibility study undertaken by the


company.


Two prominent topographical high in the vicinity marked the location


of the Main Vein area (Holy Cross & Basalt/Holy Moses). 156m.


above sea level and farther 1 km north and across the main river (Rio


Guinobatan). another contemporary gold mine (Colorado) located at


Canatonatoan Peak 325 m. elevation.


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 ultramafic 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 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 magnetite minerals and


other heavy minerals are recovered.


The prospect is bounded by the Guinobatan river at its south eastern


periphery and the river at its south eastern periphery. The river drained


westward at the central section as defined by the valley between Mt.


Canatonatoan (Colorado) and the high relief promontories of


Basalt/Holy Moses mining areas. Farther 7 km. Southwest is the


bigger Lanang river which is subparallel to Rio Guinobatan. its head


waters drained farther 20 km. the southern minesite of Bart-Ag, IXL


and David Sun areas. Both rivers empty at the flat marshy grounds of


Port Barrera Cove.


Except for some occasional 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 while the rest are bare.


4.4.2 Structural Setting





The locations of all of the five (5) gold mining districts are along the


country. The Masbate vein system is thought to be a north-west 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 Main Vein area is transected by several north-west-trending


tension fractures and is apparently situated on an elevated fault block


reflecting the great upward push by extensive and continuous volcanic


activity. The north-west recurrent shear zones are further complicated


by the post-tension fractures.


The understanding of the fracturing system is the key to the potential


auriferous quarts vein-fault system. The main tension NNW fracture


is reflected by the general trend of the Wyoming and Doris veins;


while WSW recurrent shear zones are the Breccia, El Sol and Holy


Moses Veins. The WNW post-tension fractures are represented by


minor veins (Gold Bug. Kansas and Dabu).


4.4.3 Lithology


1. Metasedimentary Rocks (MSI:Consist of mildly metamorphosed


sandstone and siltstone interbeds occupying the eastern boundary


of the mine site, is the oldest rock formation exposure.


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. Andesitic 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-Augite 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.








4.4.5 Mineralization and Hydrothermal Alteration


Free gold and silver metal deposition is controlled by silica-flooding


and argil lization. However, the gold-silver metals are more


concentrated in the quartz veins and/or in the silicified and intensely


argilized 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,


argilization (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.


 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 reconcentrated 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 vein 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


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 proposed contract areas grazing for green


vegetation. Though some of these ranches are inside other MPSA


applications, these are outside and far from the proposed


exploration projects under APSA V-0029.


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 are


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 mining claims 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 store and


transportation business utilizing jeepneys and motorized bancas. Some are


employed in the government offices.


Residential houses are mostly concentrated in the barrio site of Bangon and





Puro. Makeshifts houses are scattered within the areas but wall 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 wall include detailed data


presentation of the existing conditions 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 & 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 areas covered by APSA V-0029 application are in a contiguous


prospective mineralized zones, which includes Colorado Vein 5 at the


north. Basalt/Holy Moses vein system at the east and Holy cross vein


at the south west section.


Compass - tape traverse will be undertaken to map the vein exposure


of the prospective areas with enough rock outcrop exposures on ridges


and creeks.


Rock outcrop sampling on vein and altered mineralized zones will be


done by channeling with moil and sledge hammer, for initial assay for


gold grade determination.


5.1.2 Geophysical Method


In some structural discontinuity of exposures as in Colorado vein


5 and Holy Cross vein. Self Potential (SP) survey w ill be conducted to


 5.1.3 Exploration Drilling/Others





Follow-up trenching on prospective anomalous Self Potential zones


will be conducted to expose and verify mineralized zones of vein


structures.


After the delineation of mineralized zones at surface exposures,


Diamond and RC drilling will be undertaken to block the ore reserve


of the prospective area.


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. 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:


a. Drill equipment - RCD and DD


b. Trucks


c. Bulldozers


d. Water pumps


5.2 Preliminary Processing of Sample


Collected sample from the field outcrop exposures; from trenches and drill


core re-cutting 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 environment features


See attached map on Annex A


5.4 Estimated Exploration Cost





EXPLOITATION EXPENSES YEAR 1 YEAR 2 TOTAL


LABOR AND SUPERVISION 522.000 757.000 1.279.000


SAMPLES/ASSAY COST 500.000 300.000 800.000





FIELD SUPPLIES 120.000 120.000 240.000


CONTRACT DRILLING 5.500.000 - 5.500.000





CONTRACT CORE DRILLING - 12.000.000 12,000.000





TOTAL 6.642,000 13,177.000 19.819.000


+ 10% Contingency 664,200 1.317,700 1.981.900


6.0 IDENTIFICATION OF POTENTIAF ENVIRONMENT EFFECTS





6.1 On Land


With the road network already existing during the operation of Atlas


Consolidated Mining and Development Corporation (AC’MDC). 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 drillsite 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


to allow full reclamation. Non-biodegradeable 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 hydrolog}


Major flooding will be a remote possibility due to a limited watershed and


drainage network. There will be no major ecological alteration. Vegetation


that will 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, 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 for confirmation.








7.0 ENVIRONMENTAL MANAGEMENT MEASURES:


7.1 Creation of Company Environmental Management Officers who will


be responsible for monitoring and implementing programs for


regulatory compliance.


7.2 To protect any special habitat of flora and fauna in the area, hunting of


wildlife and rare animal/bird species shall be strictly prohibited in the


area. Kaingin and setting fire on vegetation shall be restricted.


7.3 All trenches will be fenced off. Topsoil will be separated from the


subsoil to prevent formation of ”acid mine drainage” and loss of plant


nutrients. Drainage system will be incorporated to minimize erosion


and landslides. Test pits and major excavation will be backfilled and


recontoured in such a way that slope failure will not occur and the area


7.4 Cutting of trees will be avoided as much as possible.


7.5 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


7.6 sump for proper disposal.


Areas compacted as a result of the activities shall be ripped prior to re¬


vegetation and restored, as much as possible, to its original


7.7 topography.


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 may be maintained


7.10 for this purpose.


The exploration activities will ensure that the ranches and coconut


plantations in the vicinity and the nearby coastal areas, will not be


7.11 affected.


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


7.13 coordinated with the affected residents.


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.





Prepared by:





npling Schedule





Year 1 Year 2


Activities 3 4 5 7 9 Monthly


1 2 6 8 10 11 12