capstone mining corp. · capstone mining corp. ni 43-101 technical report pinto valley property...

CAPSTONE MINING CORP.

Pinto Valley Property

Mineral Resource Estimate

NI 43-101 Technical Report

Qualified Person:

Garth Kirkham, P.Geo., Kirkham Geosystems Ltd. Burnaby, BC | 604.529.1070 | [email protected]

Effective Date: February 28, 2013 Release Date: June 12, 2013

KIRKHAM GEOSYSTEMS LTD. JUNE 2013

CAPSTONE MINING CORP. NI 43-101 TECHNICAL REPORT PINTO VALLEY PROPERTY TOC I

TABLE OF CONTENTS

1 SUMMARY ..............................................................................................................................1-1

2 INTRODUCTION ......................................................................................................................2-1

2.1 SOURCE OF DATA ...............................................................................................................2-1 2.2 SCOPE OF PERSONAL INSPECTIONS .......................................................................................2-1 2.3 UNITS OF MEASURE ............................................................................................................2-1

3 RELIANCE ON OTHER EXPERTS ...........................................................................................3-1

4 PROPERTY DESCRIPTION AND LOCATION ...........................................................................4-1

4.1 LOCATION ..........................................................................................................................4-1 4.2 TENURE, OWNERSHIP AND ENCUMBRANCES............................................................................4-2 4.3 PERMITS............................................................................................................................4-3

5 ACCESSIBILITY, CLIMATE, INFRASTRUCTURE AND PHYSIOGRAPHY .................................5-1

6 HISTORY.................................................................................................................................6-1

7 GEOLOGICAL SETTING AND MINERALIZATION ....................................................................7-1

7.1 GEOLOGICAL SETTING .........................................................................................................7-1 7.1.1 Mineralization ............................................................................................................7-3 7.1.2 Local Geology and Alteration ......................................................................................7-7

7.2 INTRUSIV E PHASES ...........................................................................................................7-12 7.2.1 Pre-Mineralization Intrusives.....................................................................................7-12 7.2.2 Intra-Mineralization Intrusive Phases .........................................................................7-14

7.3 REGIONAL STRUCTURAL FRAMEWORK..................................................................................7-17

8 DEPOSIT TYPES .....................................................................................................................8-1

9 EXPLORATION .......................................................................................................................9-1

9.1 KOZI PROSPECT .................................................................................................................9-2 9.2 BONDI PROSPECT ...............................................................................................................9-4 9.3 MATI PROSPECT .................................................................................................................9-5 9.4 OTHER COPPER OXIDE EXPLORATION ....................................................................................9-6

10 DRILLING ..........................................................................................................................10-1

11 SAMPLE PREPARATION, ANALYSES AND SECURITY.....................................................11-1

12 DATA VERIFICATION ........................................................................................................12-1

13 MINERAL PROCESSING AND METALLURGICAL TESTING ..............................................13-1

13.1 PREFACE .........................................................................................................................13-1 13.2 PINTO VALLEY PROCESS DESCRIPTION ................................................................................13-1 13.3 RECENT METALLURGICAL TESTWORK...................................................................................13-2 13.4 MINERALOGY OF THE ORE ..................................................................................................13-3 13.5 CRUSHABILITY ..................................................................................................................13-5 13.6 GRINDABILITY ...................................................................................................................13-6 13.7 PINTO VALLEY RECOVERY ..................................................................................................13-7 13.8 FLOTATION ......................................................................................................................13-8


CAPSTONE MINING CORP. NI 43-101 TECHNICAL REPORT PINTO VALLEY PROPERTY TOC II

14 MINERAL RESOURCE ESTIMATE .....................................................................................14-1

14.1 INTRODUCTION .................................................................................................................14-1 14.2 DATA EVALUATION ............................................................................................................14-1 14.3 COMPUTERIZED GEOLOGIC AND DOMAIN MODELING ...............................................................14-1 14.4 TOPOGRAPHY...................................................................................................................14-8 14.5 COMPOSITES.................................................................................................................. 14-10 14.6 OUTLIERS ...................................................................................................................... 14-13 14.7 TONNAGE FACTOR .......................................................................................................... 14-14 14.8 BLOCK MODEL DEFINITION ............................................................................................... 14-14 14.9 VARIOGRAPHY ................................................................................................................ 14-15 14.10 MINERAL RESOURCE CLASSIFICATION ............................................................................ 14-19 14.11 MINERAL RESOURCES .................................................................................................. 14-23 14.12 MODEL VALIDATION ..................................................................................................... 14-28

15 ADJACENT PROPERTIES .................................................................................................15-1

15.1 CARLOTA MINE .................................................................................................................15-1 15.2 MIAMI M INE......................................................................................................................15-2

16 OTHER RELEVANT DATA AND INFORMATION ................................................................16-1

17 INTERPRETATION AND CONCLUSIONS...........................................................................17-1

18 RECOMMENDATIONS .......................................................................................................18-1

19 REFERENCES ...................................................................................................................19-2

20 DATE AND SIGNATURES..................................................................................................20-1


CAPSTONE MINING CORP. NI 43-101 TECHNICAL REPORT PINTO VALLEY PROPERTY TOC III

LIST OF TABLES

Table 1.1: Mineral Resources in Imperial Units ..................................................................................1-3 Table 1.2: Mineral Resources in Metric Units .....................................................................................1-3 Table 2.1: Units of Measure..............................................................................................................2-2 Table 2.2: Frequently Used Acronyms and Abbreviations ...................................................................2-3 Table 4.1: Permits, Licenses and Authorizations for the Pinto Valley Project ........................................4-4 Table 9.1: Ore Type Summary for Pinto Valley Deposit ......................................................................9-2 Table 9.2: Chemical Assays Results for Ruin and Schultze Granite .....................................................9-3 Table 11.1: Analytical Results for Standard Reference Materials (2006 Pinto Valley Q/A Program) .....11-3 Table 11.2: Analytical Results for Replicate Pulp Assays (2006 Pinto Valley Q/A Program) ................11-5 Table 11.3: Analytical Results for Duplicate Core Preparation and Assays (2006 Pinto Valley Q/A

Program).......................................................................................................................................11-5 Table 11.4: Total and Stepwise Sampling Estimates and Analytical Variances ..................................11-7 Table 13.1: Summary of Testwork ...................................................................................................13-3 Table 13.2: Summary of Pinto Valley Ore Types ..............................................................................13-4 Table 13.3: Modal Mineralogy of Ruin Granite/Quartz Monzonite ......................................................13-5 Table 13.4: SMC Test Results on Pinto Valley Ore ..........................................................................13-6 Table 14.1: Statistics for Total Copper and Molybdenum Percentages ..............................................14-6 Table 14.2: Composite Statistics Weighted by Length (by Zone) ..................................................... 14-11 Table 14.3: Correlogram Model Data by Zone................................................................................ 14-16 Table 14.4: Interpolation Parameters ............................................................................................ 14-17 Table 14.5: Mineral Resources ..................................................................................................... 14-25 Table 14.6: Mineral Resources ..................................................................................................... 14-26 Table 14.7: Measured Mineral Resources ..................................................................................... 14-27 Table 14.8: Indicated Mineral Resources ....................................................................................... 14-27 Table 14.9: Inferred Mineral Resources ......................................................................................... 14-27

LIST OF FIGURES

Figure 4-1: Pinto Valley Mine Location Map (BHP 2013) .....................................................................4-1 Figure 5-1: Pinto Valley Mine Location Photo.....................................................................................5-1 Figure 7-1: Geological Map of the Western Half of the Gila-Miami District (Creasey, 1980) ...................7-2 Figure 7-2: Diagrammatic Sketch of the Geologic Relations of the Rock Units in the Globe-Miami District

(Creasey, 1980)...............................................................................................................................7-3 Figure 7-3: Surface Geology Map of the Pinto Valley Mine (Peterson et al, 1951) ................................7-6 Figure 7-4: Orebody Cross Section 3000 W looking west (BHP, 2007) ................................................7-6 Figure 7-5: Pinto Valley Geology Plan (BHP 2012).............................................................................7-7 Figure 7-6: Generalized Columnar Sections of Sedimentary and Volcanic Rocks, Castle Dome Area

(Peterson et al, 1951).......................................................................................................................7-8 Figure 7-7: Pinto Valley Alteration Plan (BHP 2012) ...........................................................................7-9 Figure 7-8 Location and Distribution of the Main Structures of the Pinto Valley District.....................7-18 Figure 8-1: Anatomy of a Telescoped Porphyry System (Sillitoe, 2010) ..............................................8-2 Figure 8-2: Generalized Alteration-Mineralization Zoning Pattern for Telescoped Porphyry Copper

Deposits (Sillitoe, 2010) ...................................................................................................................8-3 Figure 8-3: Pinto Valley Alteration and Mineralization Plan Map (BHP, 2012) .......................................8-4 Figure 9-1: Intensity Mapping of Mineralization to Define Dominant Ore -Types. ...................................9-1


CAPSTONE MINING CORP. NI 43-101 TECHNICAL REPORT PINTO VALLEY PROPERTY TOC IV

Figure 10-1: Drill Hole Section Showing Current Topography and Preliminary Optimized Pit ...............10-2 Figure 10-2: Drill Hole Plan.............................................................................................................10-3 Figure 10-3: All Drill Hole Collars ....................................................................................................10-3 Figure 11-1: Analytical Results from Standard Reference Materials ..................................................11-3 Figure 11-2: Relative Half Differences in Replicate Pulp Analyses (compares original PVO copper assays

with Skyline Laboratories repeats) ..................................................................................................11-4 Figure 11-3: Comparison of 15 Field Duplicate Samples (2006 Pinto Valley Q/A Program) .................11-6 Figure 11-4: Condensed Sample Handling and Chain of Custody Stream ..........................................11-8 Figure 13-1: Ruin Granite / Quartz Monzonite Modified Bond Work Index (kWh/mt) ...........................13-7 Figure 13-2: Pinto Valley Copper Recovery (1990 to 1998) ...............................................................13-8 Figure 14-1: Plan View Showing Drill Holes Used in Resource Estimate ............................................14-1 Figure 14-2: Plan View Showing Mineralized Solids .........................................................................14-3 Figure 14-3: Plan View Showing Major Faults ..................................................................................14-3 Figure 14-4: Plan View Drill Holes with Domain Solids .....................................................................14-4 Figure 14-5: Drill Hole Database Showing Grades and Lithology Codes ............................................14-5 Figure 14-6: Contact Plots for Copper .............................................................................................14-7 Figure 14-7: Contact Plots for Molybdenum .....................................................................................14-8 Figure 14-8: Plan View of Topographic Solids with Drill Holes ...........................................................14-9 Figure 14-9: Plan View 3D Gridded Topography by Contour Range ..................................................14-9 Figure 14-10: Box Plot for Copper Composites by Zone ................................................................. 14-12 Figure 14-11: Box Plot for Molybdenum Composites by Zone ......................................................... 14-12 Figure 14-12: Cumulative Frequency Plot for Copper (45-ft Composites) ......................................... 14-13 Figure 14-13: Cumulative Frequency Plot for Molybdenum (45-ft Composites)................................. 14-13 Figure 14-14: Block Model Bounds ............................................................................................... 14-14 Figure 14-15: Location of Grid and Model Limits ............................................................................ 14-15 Figure 14-16: Plan View of Block Model Showing Copper Grade Model at 3230 Elevation > 0.1% .... 14-18 Figure 14-17: Plan View of Block Model Showing Molybdenum Grade Model at 3230 Elevation > 0.003%

................................................................................................................................................... 14-18 Figure 14-18: Section of Block Model with Copper Grades > 0.1% Shown with Geology, Topography, and

Drill Holes ................................................................................................................................... 14-19 Figure 14-19: Relative Confidence Limits for the 52,000 stpd Production Rate ................................. 14-21 Figure 14-20: Digitized Boundary Based on Distance to Nearest Composite (shown as dashed green

polyline) ...................................................................................................................................... 14-23 Figure 14-21: Optimized Pit with Block Model ................................................................................ 14-24 Figure 14-22: Pit Optimization for Block Model ............................................................................... 14-25

_Toc358826649

Figure 14-24: Comparison of Ordinary Kriging (OK), Inverse Distance (ID2) and Nearest Neighbour (NN)

Models ........................................................................................................................................ 14-31 Figure 14-25: Swath Plots ............................................................................................................ 14-32 Figure 14-26: Copper Swatch Plots ............................................................................................... 14-33 Figure 14-27: Molybdenum Swath Plots ........................................................................................ 14-34 Figure 15-1: Pinto Valley Mine and Adjacent Properties ...................................................................15-1


CAPSTONE MINING CORP. NI 43-101 TECHNICAL REPORT PINTO VALLEY PROPERTY PAGE 1-1

1 SUMMARY

This Technical Report was prepared by Garth Kirkham, P.Geo., Kirkham Geosystems Ltd. The

report was commissioned by Capstone Mining Corp. (Capstone) in support of the sale by BHP

Copper Inc. (BHP) and Capstone's subsequent acquisition of the P into Valley Mine. In addition, the

resources reported herein will form the basis for ongoing advanced studies, such as a Feasibility

Study which will address the mine restart.

This report is based primarily on data compiled and generated by BHP and drilling programs

conducted in 2011 and 2012, internal reports, and the JORC-compliant report, June 2012 Mineral

Resource & Ore Reserve Competent Persons Report: Pinto Valley (Preece and Baird, 2012).

Garth Kirkham, P. Geo., visited the property on May 14, 2013, and the laboratory facilities on May

15, 2013. The site visit included an inspection of the mine site infrastructure, core logging facilities,

offices, pit, core storage facilities, core receiving area, core sawing stations and a tour of the major

population centres and surrounding towns.

The Pinto Valley Mine and Concentrator are located at the west end of the Globe-Miami district,

approximately six miles west of the town of Miami in Gila County, Arizona at an elevation of

approximately 4,000 ft. Access to the mine is via U.S. Highway 60, approximately 80 miles east of

Phoenix to the Pinto Valley Mine Road, then approximately 1.5 miles north.

On April 28, 2013, Capstone entered into a purchase agreement (Purchase Agreement) with BHP

Copper Inc. (BHP Copper) pursuant to which Capstone proposed to purchase, through a wholly-

owned U.S. subsidiary, 100% interest in the Pinto Valley Mine and associated railroad operations for

US$650 million.

The Globe-Miami district is one of the oldest and most productive mining districts in the United

States. The first recorded production from the district was in 1878. Since that time, over 15 billion

pounds of copper have been produced.

Pinto Valley Mining Division originated as Miami Copper Company in 1909. In 1960, the Tennessee

Corporation took over Miami Copper Company, and, in 1969, Cities Service Company merged with

the Tennessee Corporation. In late 1982, Occidental Petroleum Corporation (Occidental) acquired

Cities Service Company. In February 1983, Occidental sold the Miami operations to Newmont

Mining Corporation. At this time, the company's name was changed to Pinto Valley Copper

Corporation (Pinto Valley Copper). In November 1986, Newmont merged the Pinto Valley Copper

assets into Magma Copper Company holdings, and Pinto Valley Copper became the Pinto Valley

Mining Division of Magma Copper Company. In December 1995, Broken Hill Proprietary Company

Limited (BHP) purchased Magma Copper Company. With the merger of BHP and Billiton, the Pinto

Valley Mining Division became the Pinto Valley Operations of BHP Copper Inc.



The Pinto Valley Mining Division is located within the Globe-Miami mining district of central

Arizona. Several mines and numerous prospects have been developed in the area. Larger mines in

the district are porphyry copper deposits associated with Paleocene granodiorite to Granite Porphyry

stocks. The porphyry copper deposits have been dismembered by faults and affected by later erosion

and minor oxidation. Vein deposits and possible exotic copper deposits are also found within the

district.

The Globe-Miami district contains igneous, metamorphic, and sedimentary rocks of Precambrian,

Paleozoic, Tertiary, and Quaternary age. Precambrian basement rocks largely consist of Early

Proterozoic Pinal Schist intruded by granites correlative with peraluminous two-mica granite

batholiths that comprise the Proterozoic basement rocks throughout southern Arizona and New

Mexico. The Late Proterozoic Apache Group consists of (from oldest to youngest): the Pioneer

Formation, including the basal Scanlan Conglomerate; the Dripping Spring Quartzite, including the

Barnes Conglomerate; the Mescal Limestone; and, minor basalt closely associated with the Mescal.

These units are intruded by Apache Diabase sills of various thicknesses.

Paleozoic rocks in the district are the Cambrian Troy Quartzite, Devonian Martin Limestone,

Mississippian Escabrosa Limestone, and Pennsylvanian to Permian Naco Formation.

A large pluton of Schultze Granite was intruded into the Precambrian and Paleozoic wall rocks. Near

the northern-most exposures at the Inspiration mineral deposit, it has various textures and

compositions that have been called Granodiorite, Quartz Monzonite, and Porphyritic Quartz

Monzonite. A separate, Granite Porphyry has been mapped at Pinto Valley, Copper Cities, Diamond

H, and Miami East, and is seen near the vein-controlled mineralization at Old Dominion.

Tertiary sedimentary and volcanic rocks cover the mineralized units. The Whitetail Conglomerate

was formed as a result of regional uplift which contains weathered clasts of older rocks in a red iron

oxide-rich, very fine-grained matrix. A Miocene ash-flow tuff, known as the Apache Leap Tuff,

covered the area following the Whitetail Conglomerate, and further Basin and Range faulting and

subsequent erosion produced the Tertiary to Quaternary Gila Conglomerate from all older rocks. On

the west side of the Pinto Valley open pit, the Gila Conglomerate contains a basalt sill.

The hydrothermal ore deposits in the district comprise vein deposits and typical porphyry copper

deposits. On the basis of predominant metals, the vein deposits can be further divided into copper

veins, zinc-lead veins, zinc-lead-vanadium-molybdenum veins, manganese-zinc-lead-silver veins,

gold-silver veins, and molybdenum veins. The primary minerals of the porphyry copper deposits are

chiefly pyrite and chalcopyrite with minor amounts of molybdenite; gold and silver are recovered as

by-products. Sphalerite and galena occur locally in very small amounts. Silicate alteration

associated with the deposits includes potassic, argillic, sericitic, and propylitic alterations.

The Pinto Valley Mine has previously been in production and preliminary metallurgical and

geometallurgical work has already been completed; however, a more detailed and advanced program

is currently underway to augment this previous work which will eventually form the basis of a Pre-



feasibility Study planned for late 2013. To-date, a broad characterization of recoveries exists for

copper and molybdenum at 88% and 50%, respectively.

The mineral resources are shown in Table 1.1 for Cu% and Mo%. These mineral resources are listed

at a base case cut-off grade of 0.25% Cu.

TABLE 1.1: MINERAL RESOURCES IN IMPERIAL UNITS

Total Cut-Off Ore Cu% Mo%

Cu% (tons)

Measured 0.25 443,030,204 0.384 0.010

Indicated 0.25 623,458,863 0.331 0.008

Measured & Indicated 0.25 1,066,489,067 0.353 0.009

Inferred 0.25 49,285,298 0.326 0.009

Note: This estimate has not been adjusted for the three months of mining

from date of start-up to February 28, 2013.

As Capstone is a Canadian issuer and BHP (the seller) is an Australian company, the author is also

reporting the resources in metric units for tonnage and contained copper. Molybdenum, however, is

reported in pounds, its most common unit. The mineral resources (in metric units) are shown in

Table 1.2 for Cu% and Mo%. These mineral resources are listed at a base case cut-off grade of

0.25% Cu.

The purpose of this Technical Report was to present the resource estimate for the Pinto Valley

Deposit. Therefore, the primary interpretations and conclusions of this report are related to the data,

analysis and methods related to the calculation of the resource estimate.

TABLE 1.2: MINERAL RESOURCES IN METRIC UNITS

Metric Copper Molybdenum Contained Contained

Tonnes (%) (%) Copper Molybdenum

(M) (k tonnes) (M lbs)

Measured 402 0.38 0.01 1,544 89

Indicated 566 0.33 0.008 1,870 99

Measured & Indicated 968 0.35 0.009 3,414 188

Inferred 45 0.33 0.009 146 9

Notes: Mineral Resource Estimate, February 28, 2013, at a 0.25% COG. Any discrepancies in the

totals are related to rounding. This estimate has not been adjusted for the three months of mining


In order to further evaluate the resource potential of the Pinto Valley Project and advance the project

by evaluating its economic viability, the following recommendations should be considered in 2013:

Incorporate remaining assay data from 2012-2013 drilling campaign.



To increase confidence and upgrade resource classification.

Continue with the QA/QC of the master database.

Continue density measurements and analysis.

Revise solids based on the most current assay data.

Documentation and project map of all drill data.

Improve documentation of procedures and protocols.

Continue with advanced metallurgical studies.

Continue environmental studies.

Continue with activities related to and completion of Pre-feasibility Study.



2 INTRODUCTION

This Technical Report was prepared by Garth Kirkham, P.Geo., Kirkham Geosystems Ltd. The

report was commissioned by Capstone Mining Corp. (Capstone) in support of the sale by BHP

Copper Inc. (BHP) and Capstone's subsequent acquisition of the P into Valley Mine. In addition, the

resources reported herein will form the basis for ongoing advanced studies, such as a Pre-feasibility

study which will address the mine restart. This Technical Report was written in compliance with

disclosure and reporting requirements set forth in the Canadian Securities Administrators National

Instrument 43-101, Companion Policy 43-101CP, and Form 43-101F1 (collectively referred to as NI

43-101).

2.1 SOURCE OF DATA

This report is based primarily on data compiled and generated by BHP, drilling programs

conducted in 2011 and 2012, internal reports, and the JORC-compliant report, June 2012 Mineral

Resource & Ore Reserve Competent Persons Report: Pinto Valley (Preece and Baird, 2012).

2.2 SCOPE OF PERSONAL INSPECTIONS

Garth Kirkham, P. Geo., visited the property on May 14, 2013, and the laboratory facilities on

May 15, 2013. The site visit included an inspection of the mine site infrastructure, core logging

facilities, offices, pit, outcrops, core storage facilities, core receiving area, core sawing stations

and a tour of the major population centres and surrounding towns.

2.3 UNITS OF MEASURE

The units of measure used in this report are shown in Table 2.1. All currency quoted in this

report refers to U.S. dollars, unless otherwise noted. All distances and linear measurements are

given in feet and miles, unless otherwise noted. Frequently used abbreviations and acronyms are

shown in Table 2.2.



TABLE 2.1: UNITS OF MEASURE

Type Unit Unit Abbreviation Si Conversion1

area acre acre 4,046.86 m2

area hectare ha 10,000 m2

area square kilometre km2 100 ha

area square mile mi2 259.00 ha

concentration grams per metric ton g/t 1 part per million

concentration troy ounces per short ton oz/ton 34.28552 g/t

length foot ft 0.3048 m

length metre m Si base unit

length kilometre km Si base unit

length centimetre cm Si base unit

length mile mi 1,609.34 km

length yard yd 0.9144 m

mass gram g Si base unit

mass kilogram kg Si base unit

mass troy ounce oz 31.10348 g

mass metric ton t, tonne 1,000 kg

mass short ton T, ton 2,000 lbs

time million years Ma million years

volume cubic yard cu yd 0.7626 m3

temperature degrees Celsius °C Degrees Celsius2

temperature degrees Fahrenheit °F °F=°C x 9/5 +32

Note: 1 Si refers to International System of Units.

2 Degrees Celsius in not an SI unit, but is the standard for temperature.



TABLE 2.2: FREQUENTLY USED ACRONYMS AND ABBREVIATIONS

AA Atomic absorption spectrometry

Ag silver APP Aquifer Protection Permit As arsenic

Au gold Ba barium BLM Bureau of Land Management

C Celsius CIM Canadian Institute of Mining cm centimetre

COG cut-off grade Cu copper DDH diamond drill hole

DWi drop weight index

E east

EA Environmental Assessment

ft feet

g/t grams per tonne JORC Joint Ore Reserves Committee

K potassium kg kilogram = 2.205 pounds km kilometre = 0.6214 mile

kWh/m3

kilowatt-hour per cubic meter LoM Life of Mine m metre = 3.2808 feet M million

Ma million years old MLP Mined Land Reclamation Plan Mo molybdenum µm micron = one millionth of a metre

N north Na sodium NSR Net Smelter Royalty oz troy ounce (12 oz to 1 pound)

Pb lead PIMA Portable Infrared Mineral Analyzer

ppm parts per million ppb parts per billion PVO Pinto Valley Operation QA/QC Quality Assurance/Quality Control

QEMSCAN Quantitative Evaluation of Minerals by SCANning electron microscopy RC reverse-circulation drilling method

RHD relative half difference

RQD rock quality designation

S south

SEM scanning electron microscope SMC SAG Mill Comminution

SX-EW Solvent Extraction and Electrowinning t metric tonne

T short ton

U.S. United States

UTM Universal Transverse Mercator



W west

Zn zinc



3 RELIANCE ON OTHER EXPERTS

This Technical Report was prepared by Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd.

To prepare this report, the author relied on exploration reports and data from previous exploration

programs, interna l reports, and consultants’ reports, including the JORC-compliant report, June 2012

Mineral Resource & Ore Reserve Competent Persons Report: Pinto Valley , (Preece and Baird, 2012)

The author believes that the combined information, conclusions, and recommendations are accurate

and reliable. The author also believes that the drilling, geological, and geochemical data reported by

the companies and government agencies regarding the project and its environment are accurate and

reliable and have been performed by competent professionals operating to industry standards and

best practices.

This Technical Report was prepared using public and private information provided by BHP and

information from papers and previous technical reports listed in Section 19 of this report. The current

report also relies on the work and opinions of non-QP (qualified person) experts and non-

independent QPs. However, the author believes that the information provided and relied on for the

preparation of this report was accurate at the time of reporting, and that the interpretations and

opinions expressed by these individuals are reasonable and based on a current understanding of the

deposit. Each contributing QP has made a reasonable effort to verify the accuracy of the data used to

develop this report and takes full responsibility for the information contained in this report.

BHP Copper denied the author certain information relating to its business matters that were deemed

confidential and industry-sensitive. BHP Copper, through legal counsel, determined what material

was sensitive and unavailable for release. Although it is believed that all information relevant to the

creation of this Technical Report has been disclosed, unrestricted and free access was not given to

the author due to constraints under the previously stated U.S. laws.

The results and opinions expressed in this report are conditional on the aforementioned information

being current, accurate, and complete as of the date of this report, and provided with the

understanding that no information has been withheld that could affect the conclusions made in this

report. The author reserves the right to revise, but is not obliged to revise, this report and its

conclusions if and when additional information becomes available, subsequent to the date of this

report.



4 PROPERTY DESCRIPTION AND LOCATION

4.1 LOCATION



approximately 4,000 ft. Access to the mine is via U.S. Highway 60, approximately 80 miles east

of Phoenix to the Pinto Valley Mine Road, then approximately 1.5 miles north (Figure 4-1).

FIGURE 4-1: PINTO VALLEY MINE LOCATION MAP (BHP 2013)

The Pinto Valley Mine is currently an operating open pit operation that consists of a single

truck/loader pit that is approximately 340 m deep, 1.5 km wide, and 2.1 km long. The pit is L-

shaped and is near the on-site infrastructure. There are suitable maintenance facilities for large

Pinto ValleyN

Pinto ValleyN

Pinto ValleyN



pieces of earth-moving equipment, and for the mill and general personnel. Two previous tailings

dams have been rehabilitated and two tailings dams are currently operational. There is a Solvent

Extraction and Electro-winning (SX-EW) facility located on the eastern edge of the property,

opposite the leach dump.

4.2 TENURE, OWNERSHIP AND ENCUMBRANCES

On April 28, 2013, Capstone entered into a purchase agreement (Purchase Agreement) with BHP

Copper Inc. (BHP Copper) pursuant to which Capstone proposed to purchase, through a wholly-

owned U.S. subsidiary, 100% interest in the Pinto Valley Mine and associated railroad operations

for US$650 million.

Pinto Valley is a combination of fee land, patented mining and mill site claims, and unpatented

mining and mill site claims. As a whole, the land can support open pit mining, ore processing,

tailings storage, waste rock disposal, and the operation of milling equipment. The unpatented

mining claims and mill sites are accessible under the provisions of the U.S. federal Mining Law

of 1872, subject to approval from the U.S. Forest Service after the completion of an

environmental impact analysis under the National Environmental Policy Act (NEPA) in

connection with a proposed plan of operations (POO) governing portions of the property. The

NEPA review process includes interagency consultation on project alternatives and the mitigation

of environmental impacts. Use of the fee lands and patented mining claims and mill sites are

governed by a Mined Land Reclamation Plan (MLRP) and an Aquifer Protection Permit (APP),

both issued by the Arizona Department of Environmental Quality. To use the project's surface

rights and mine on the property requires the owner to obtain or transfer the plan of operations, the

MLRP and APP, and a number of other federal, state, and local permits and approvals; some of

these have been completed, and others are still in progress, but will be obtained or transferred

before or concurrent with the transfer of the Pinto Valley mine to Capstone. (Note: A complete

list of permits can be found in Appendix B).The core of the Pinto Valley property consists of 69

patented lode mining claims. Also included in the property are 53 patented mill sites. Adjacent to

and nearby the patented claims are 329 unpatented lode mining claims and mill sites. Most of the

unpatented mining claims and mill sites were staked on federal land administered by the U.S.

Forest Service, but a limited number of the unpatented mining claims and mill sites are on federal

land administered by the Bureau of Land Management (BLM). Seven parcels of fee (private) land

are associated with the property. A list of the unpatented mining claims and mill sites, patented

mining claims and mill sites, and fee lands can be found in Appendix A.

BHP Copper owns the patented mining claims and fee land parcels, which are private lands that

provide the owner with both surface and mineral rights. BHP Copper also owns the patented mill

sites. The patented mining claim block, located in the core of the property, is indicated in the field

by surveyed brass caps on short pipes cemented into the ground. The fee lands are located by

legal description and recorded at the Gila County Recorder’s Office. The patented mining claims,

mill sites, and fee lands are subject to annual property taxes. As long as the property taxes are

paid annually on these claims, there is no expiration date.



BHP Copper also owns the unpatented lode mining claims and mill sites that are adjacent to and

nearby the patented claims. Wooden posts and stone cairns mark the unpatented mining claim

corners, end lines, and discovery monuments; all of these have been surveyed. The unpatented

mining claims and mill sites have no expiration date and can be maintained by filing the required

documents with the BLM, providing the required records to Gila County, and paying an annual

maintenance fee to the BLM of $140 per claim.

As Capstone is purchasing an operating mine, the property is subject to ongoing environmental

liabilities and reclamation obligations. The nature and extent at this time and will be better

understood once all permits and approvals required to operate the Pinto Valley Mine have been

obtained by, or transferred to, Capstone.

A 2% net smelter return (NSR) royalty applies to 26 of the unpatented mining claims.

4.3 PERMITS

The following sections list the permits that were required by Pinto Valley (detailed in Table 4.1):

Pinto Valley

Aquifer Protection Permit

AZPDES Discharge Permit

Permits for Use of High Explosives and Blasting Agents

Air Permit

Mined Land Reclamation Plan

AZPDES Stormwater Multi-Sector General Permit

The Right of Ways and Special Use Permits included in the Plan of Operations



TABLE 4.1: PERMITS, LICENSES AND AUTHORIZATIONS FOR THE PINTO VALLEY PROJECT

Item Agency Original Issue Date

Aquifer Protection Permit No. P-100329

Arizona Department of Environmental Quality

09/17/12

AZPDES Point Source

Discharge Permit No. AZ0020401

State of Arizona

Department of Water Resources

11/28/08

AZPDES Stormwater Multi-Sector General Permit No.

AZMSG 2010-003


08/10/11

Synthetic Minor Class II Air Operating Permit No. 54118


05/08/12

Pinto Valley Operations Mined Land Reclamation

Plan

Arizona State Mines Inspector

08/12

The following permits are included in the Plan of Operations:

Right of Way PHX-080742

Special Use Permit

GLO 445301


Plan of Operation

POO-001

Plan of Operation POO-002 Plan of

Operation POO-003

Special Use Permit GLO 445302


Special Use Permit Tonto 468

USDA Forest Service 09/24/2009

Department of Weights and

Measures BMF #4277 and #4278

Arizona Department of

Weights and Measures



5 ACCESSIBILITY, CLIMATE,

INFRASTRUCTURE AND PHYSIOGRAPHY



approximately 4,000 ft. Access to the mine is via U.S. Highway 60, approximately 80 miles east of

Phoenix to the Pinto Valley Mine Road, then approximately 1.5 miles north (Figure 5-1).

FIGURE 5-1: PINTO VALLEY MINE LOCATION PHOTO

The Pinto Valley Mine is currently an open pit operation that consists of a single truck/loader pit that

is approximately 340 m deep, 1.5 km wide, and 2.1 km long. The pit is L-shaped and is near the on-

site infrastructure. There are suitable maintenance facilities for large pieces of earthmoving

equipment, and for mill and general personnel infrastructure. Two previous tailings dams have been

rehabilitated and two tailings dams are currently operational. There is a Solvent Extraction and

Electro-winning (SX-EW) facility located on the eastern edge of the property, opposite the leach

dump.

The Pinto Valley Mine is located on Pinto Valley Road (FR 287). The site is approximately 4.8 km

(3 miles) north of U.S. Highway 60. The site can be accessed from Phoenix, Arizona, approximately

80 miles to the west), by traveling east on U.S. Highway 60. The site can also be accessed from

Tucson, Arizona (100 miles to the south) by traveling north on State Route (SR) 77 and then west on



U.S. Highway 60. The mine property can be accessed using existing mine roads and the

southernmost segment of FR 287.

A large network of roads has been built to serve the Pinto Valley Mine. The primary access, FR 287,

is a paved road; all other roads are unpaved. Some roads are well-maintained to accommodate daily

traffic, whereas others are not maintained and require four-wheel drive vehicles. Although FR 287 is

a public road that passes through the mine property, public access to the mine facilities is restricted

and managed by gates and Pinto Valley Mine security personnel.

The regional climate is semi-arid. The average annual precipitation in the region is 58.4 cm and falls

in a bimodal pattern. Most of the rainfall occurs during the winter and summer months, with dry

periods in the spring and fall. Precipitation during the winter months (December through March)

usually occurs as long, steady storms. Although snow may occur at higher elevations, it does not

typically accumulate. Rain events during the summer months (July to early September) are typically

short with greater intensity due to the convective nature of thunderstorms. May and June are

typically the driest months of the year and can commonly result in drought conditions. For

approximately one year out of every four, the region may experience little to no precipitation for an

entire month.

The National Oceanic and Atmospheric Administration’s Climate Atlas of the United States and the

Western Regional Climate Center records include data from a station in Miami, Arizona

approximately 6 miles east of the site. The period of record for the Miami station is from 1914 to

2005. The average annual maximum temperature for the period of record at this station is 25°C . July

is the warmest month with an average maximum temperature of 36°C. The average annual minimum

temperature for the coolest month is 1°C in January.

The town of Miami, located 13 km (8 miles) east of the mine, had approximately 1,800 residents in

2011, and the town of Globe (the County seat), located 21 km (13 miles) east of the mine, had

approximately 7,500 residents in 2011. Copper mining provides the largest number of jobs in the

area. And because of a long-standing mining tradition in the area, local services are already in place

to supply the project's needs. The current level of community services is deemed to be adequate for

the needs of the mine. Medical facilities are available at the Cobre Valley Community Hospital

located in Miami. Fire, police, public works, transportation, and recreational facilities are in place

and fully functioning. The community has an adequate supply of permanent housing and temporary

housing to accommodate the Pinto Valley Mine's current workforce.

The Pinto Valley Mine is located in east-central Arizona in the structural transition zone between the

Sonoran section of the Basin and Range physiographic province to the south-southwest, and the

Colorado Plateau to the north. The terrain surrounding the mine property is generally mountainous,

dominated by sharp landforms and prolific exposures of the variety of bedrock formations present in

the region. The Pinto Valley Mine is entirely within the Pinto Creek watershed, where local

elevations range from about 1,067 m to 1,524 m above mean sea level.



The Pinto Valley Mine lies entirely along the eastern flank of Pinto Creek, with numerous southwest-

trending to northwest-trending, ephemeral Pinto Creek tributaries crossing the property. Most of the

headwaters of these tributaries originate along a regional surface water divide that runs north to south

near the eastern Pinto Valley Mine property line. All surface water runoff from the site ultimately

flows into Pinto Creek, just west of the western boundary of the property. Pinto Creek flows from the

south to the north and flows into Roosevelt Lake and the Salt River.

Two types of hydrogeologic units are present at the site. The first and uppermost is the alluvial

system: this is a near-surface groundwater system consisting of shallow-circulating water moving in

the alluvium and the upper weathered portions of the underlying bedrock. The second is the bedrock

system: this consists of deeply-circulating groundwater moving through fractures and joints in the

consolidated bedrock underlying the area. Some units/sections of the bedrock system act more like

the alluvial system, including deeper weathered portions of the fractured bedrock and the Gila

Conglomerate.

The Pinto Valley Mine is near the boundary of areas mapped as the Interior Chaparral biotic

community and the Arizona Upland subdivision of Sonoran desertscrub biotic community. Plant

species on the property that are characteristic of the Arizona Upland community include saguaro,

blue palo verde, velvet mesquite, catclaw, four-wing saltbush, ocotillo, and Engelmann prickly-pear.

Plant species more characteristic of the Interior Chaparral community include Arizona white oak,

shrub live oak, one-seed juniper, point-leaf manzanita, sugar sumac, skunkbush, and canotia.

A variety of mammals, birds, reptiles, and amphibians comprise the wildlife community at the Pinto

Valley Mine. Because the property is located on the ecotone between two major plant communities,

wildlife diversity on the site also represents species adapted to both communities. Common wildlife

species that have been observed on site include rock squirrel, coyote, mule deer, Gambel’s quail,

Cooper’s hawk, mourning dove, Bell’s vireo, western scrub-jay, phainopepla, and canyon towhee.

Most of the species observed have wide environmental tolerances and are present in both plant

communities on the property.

The southwestern parts of the mine are near the perennial reach of Pinto Creek. The Pinto Creek

riparian zone is dominated by Fremont cottonwood, Goodding willow, Arizona sycamore, Arizona

cypress, and seep willow.



6 HISTORY

The Globe-Miami district is one of the oldest and most productive mining districts in the United

States. The first recorded production from the district was in 1878. Since that time, over 15 billion

pounds of copper have been produced.

Pinto Valley Mining Division originated as Miami Copper Company in 1909. In 1960, the Tennessee

Corporation took over Miami Copper Company, and, in 1969, Cities Service Company merged with

the Tennessee Corporation. In late 1982, Occidental Petroleum Corporation (Occidental) acquired

Cities Service Company. In February 1983, Occidental sold the Miami operations to Newmont

Mining Corporation. At this time, the company's name was changed to Pinto Valley Copper

Corporation (Pinto Valley Copper). In November 1986, Newmont merged the Pinto Valley Copper

assets into Magma Copper Company holdings, and Pinto Valley Copper became the Pinto Valley

Mining Division of Magma Copper Company. In December 1995, Broken Hill Proprietary Company

Limited (BHP) purchased Magma Copper Company. With the merger of BHP and Billiton in 2001,

the Pinto Valley Mining Division became the Pinto Valley Operations of BHP Copper Inc.

Development of the Pinto Valley open pit began in 1972, and the mine and concentrator went into

production in 1974. Previously, a chalcocite-enriched zone of the deposit was mined from 1943 until

1953, as the Castle Dome Mine. Sulphide ore from the Pinto Valley open pit operation was

processed at the unit's concentrator, which produced a copper concentrate containing approximately

28% copper and a molybdenum disulphide by-product. The copper concentrate was then trucked to

a smelter and refinery in San Manuel, Arizona. In February 1998, sulphide mining and milling was

suspended due to depressed copper prices. The concentrator was placed under care and maintenance

and the mining equipment fleet was sold. Operating and environmental permits were mainta ined

during the suspension of sulphide operations, as were the water and electrical systems, although

these were maintained at lower usage rates than during mining and milling operations. Cathode

copper production continued during the suspension of sulphide operations at the Pinto Valley and

Miami SX-EW facilities.

In April 2006, a study was completed to determine the feasibility of rehabilitating the mill and

flotation plant and restart mining activities; it concluded with an Independent Peer Review in

September 2006. A provisional approval for restart was granted in December 2006 and final

approval was granted in early 2007. The resource and reserve estimates made in 1996 were reviewed

and validated during the Feasibility Study, and these estimates were restated in June 2007. The Pinto

Valley Mine operated for 18 months before depressed copper prices forced it to be placed under care

and maintenance again. The notice and cessation of the operation occurred on January 20, 2009.

In 2011, a new study was commissioned to restart the mine; it was peer reviewed and approved by

BHP Copper Inc. in January 2012 and the mill was restarted in December 2012.



7 GEOLOGICAL SETTING AND

MINERALIZATION

7.1 GEOLOGICAL SETTING

The Pinto Valley Mining Division is located within the Globe-Miami mining district of central

Arizona. Several mines and numerous prospects have been developed in the area. Larger mines in

the district are porphyry copper deposits (Creasey, 1980) associated with Paleocene (59 to 63 Ma)

Granodiorite to Granite Porphyry stocks. The porphyry copper deposits have been dismembered

by faults and affected by later erosion and minor oxidation. Vein deposits and possible exotic

copper deposits are also found within the district.

The Globe-Miami district contains igneous, metamorphic, and sedimentary rocks of Precambrian,

Paleozoic, Tertiary, and Quaternary age. Figure 7-1 shows a simplified geological map of the

western half of the district. Figure 7-2 shows a diagrammatic sketch that indicates the age and

spatial relationships of the major rock units.

Precambrian basement rocks largely consist of Early Proterozoic Pinal Schist (~1700 Ma)

intruded by granites correlative with 1450 Ma peraluminous two-mica granite batholiths that

comprise the Proterozoic basement rocks throughout southern Arizona and New Mexico. The

Late Proterozoic Apache Group consists of (from oldest to youngest): the Pioneer Formation,

including the basal Scanlan Conglomerate; the Dripping Spring Quartzite, including the Barnes

Conglomerate; the Mescal Limestone; and, minor Basalt closely associated with the Mescal.

These units are intruded by 1100 Ma Apache Diabase sills of various thicknesses.

Paleozoic rocks in the district are the Cambrian Troy Quartzite, Devonian Martin Limestone,

Mississippian Escabrosa Limestone, and Pennsylvanian to Permian Naco Formation.

During the Eocene (60 to 62 Ma), a large pluton of Schultze Granite was intruded into the

Precambrian and Paleozoic wall rocks. Near the northern-most exposures at the Inspiration

mineral deposit, it has various textures and compositions that have been called Granodiorite,

Quartz Monzonite, and Porphyritic Quartz Monzonite (Olmstead and Johnson, 1966). Creasey

(1980) refers to this as the porphyry phase of the Schultze Granite. A separate, Granite Porphyry

has been mapped at Pinto Valley, Copper Cities, Diamond H, and Miami East, and is seen near

the vein-controlled mineralization at Old Dominion. Rocks identical to this Granite Porphyry are

seen in the Miami-Inspiration mineral deposit, but they have not been systematically mapped as a

separate unit.

Tertiary sedimentary and volcanic rocks cover the mineralized units. The Whitetail Conglomerate

was formed as a result of regional uplift approximately 32 Ma. Rocks of the Whitetail

Conglomerate contain weathered clasts of older rocks in a red iron oxide-rich, very fine-grained

matrix, and detrital to exotic copper mineralization is not unknown. A Miocene ash-flow tuff,



known as the Apache Leap Tuff, covered the area following the Whitetail Conglomerate (21 Ma).

Further Basin and Range faulting and subsequent erosion produced the Tertiary to Quaternary

Gila Conglomerate from all older rocks. On the west side of the Pinto Valley open pit, the Gila

Conglomerate contains a basalt sill.

FIGURE 7-1: GEOLOGICAL MAP OF THE W ESTERN HALF OF THE GILA-MIAMI DISTRICT (CREASEY, 1980)



Note: Abbreviations used for Figure 7-2 are as follows: AG, Apache Group; AL, Apache Leap Tuff; DB, Diabase

EL, Escabrosa Limestone; GC, Gila Conglomerate; GM, granite of Manitou Hill; LG, Lost Gulch Monzonite; MD,

Madera Diorite; MF, Martin Limestone; NL, Naco Limestone; PS, Pinal Schist; RG, Ruin Granite; SG, Schultze

Granite; SOG, Solitude Granite; TQ, Troy Quartzite; WS, Willow Spring Granodiorite; WT, and Whitetail

Conglomerate.

FIGURE 7-2: DIAGRAMMATIC SKETCH OF THE GEOLOGIC RELATIONS OF THE ROCK UNITS IN THE GLOBE-MIAMI

DISTRICT (CREASEY, 1980)

7.1.1 Mineralization

The hydrothermal ore deposits in the district comprise vein deposits and typical porphyry copper

deposits. On the basis of predominant metals, the vein deposits can be further divided into copper

veins, zinc-lead veins, zinc-lead-vanadium-molybdenum veins, manganese-zinc-lead-silver veins,

gold-silver veins, and molybdenum veins (Peterson, 1962). The primary minerals of the porphyry

copper deposits are chiefly pyrite and chalcopyrite with minor amounts of molybdenite; gold and

silver are recovered as by-products. Sphalerite and galena occur locally in very small amounts.

Silicate alteration associated with the deposits includes potassic, argillic, sericitic, and propylitic

alterations.



The Pinto Valley is a hypogene orebody with chalcopyrite, pyrite, and minor molybdenite as the

only significant primary sulphide minerals. It is the underlying protore of the chalcocite-enriched

Castle Dome deposit exhausted in 1953 (Peterson et al., 1951).

Host rock for the Pinto Valley porphyry copper deposit is the Precambrian age Lost Gulch Quartz

Monzonite, which is equivalent to the Oracle or Ruin Granite (Breitrick and Lenzi, 1987).

Formation of the deposit was associated with the intrusion of small bodies and dikes of Granite

Porphyry and Granodiorite that are of similar composition and age as the Schultze Granite, at

about 61.2 Ma. Copper mineralization has been dated at 59.1 Ma (Creasey, 1980).

Primary sulphide ore minerals consist of pyrite, chalcopyrite, and minor molybdenite that occur

in veins and microfractures, and less abundantly as disseminated grains predominantly in biotite

sites. The ore zone grades outward into a pyritic zone with higher total sulphide content and the

ore zone grades inward toward the low-grade core which has lower total sulphides. Molybdenum

distribution generally reflects copper distribution, with higher molybdenum values usually found

in the higher-grade copper zones.

Sulphide deposition at Pinto Valley is controlled to some extent by the host rock. For the most

part, the host is Lost Gulch Quartz Monzonite and Porphyritic Quartz Monzonite, which are

similarly altered and mineralized. The sulphide content decreases in Precambrian Aplite

intrusions. Aplite usually contains less than 0.25% copper, whereas adjacent Quartz Monzonite

may have as much as 0.6% copper. The deficiency of copper in Aplite is probably due to the

absence of biotite, which makes up about 7% of Quartz Monzonite. Disseminated chalcopyrite

shows an affinity for biotite, where it is seen to be disseminated through the biotite or partially

replacing it. Additional chalcopyrite is also present in veins which cut both rock types.

Small intrusions of Granite Porphyry extend beyond the main mapped unit shown in Figure 7-3

as mimicking the pit outline. Where Quartz Monzonite constitutes ore (more than 0.3% copper),

and the Granite Porphyry does not usually contain ore grades (about 0.15% to 0.2% copper).

Granite Porphyry contains sulphide veins but generally lacks disseminated sulphides in biotite

sites.

The shell has the appearance of a hook in plan view (Figure 7-3) and mimicks the pit outline.

Rock located south of the ore has decreasing sulphide content and numerous barren quartz veins.

This area has been interpreted as a low-grade core, and this low-grade zone corresponds spatially

with the Granite Porphyry, which is seen as a poor lithologic host for ore-grade mineralization

elsewhere in the deposit. Rock located north of ore has progressively more abundant, late-stage

quartz-pyrite-sericite veins.

Cross section 3000 West (Figure 7-4) shows drill holes and sulphide copper block model contours

based on BHP’s JORC-compliant 2007 block model. The section is drawn through the "hook" in

Quartz Monzonite west of the large granodiorite and Granite Porphyry exposures. It shows a

central low-grade zone surrounded by an ore shell. The core of the shell dips steeply to the north.



The South Hill fault cuts the ore shell and associated alteration to the south. The shallow dipping

Flat Fault cuts off the ore beneath the southern limb of the grade shell.

The sections suggest that the original configuration of the copper zone was that of a distorted,

inverted bowl with its long axis striking approximately N80E.

The deposit is bound by post-mineral faults. The South Hill fault is on the south side , the Jewel

Hill fault is on the east side, and the Gold Gulch fault is on the west side. Minor post mineral

normal displacement has taken place on the Dome fault, a pre-mineral structure that strikes north-

easterly across the north limb of the deposit.

Diabase forms thin dikes in pit exposures. These dikes commonly contain higher copper content

than surrounding Quartz Monzonite. In the eastern part of the deposit, a Diabase sill lies at the top

of the ore. Diabase west of the Gold Gulch fault is mineralized by pyrite and chalcopyrite veins

with abundant magnetite near mineralized Granite Porphyry.

A geological mapping exercise of Pinto Valley was conducted in early 2012 using the Anaconda

method producing three, GIS-registered layers showing geology, alteration style and

mineralization.

A total of 45 rock samples were submitted for analysis using Iogas geostatistics. Both transmitted

and reflected-light thin sections were prepared for petrographic analysis of select samples.

Spectral analysis of clays and micas from select sites was performed to determine if clay species

were of hydrothermal origin.

Mapping the regional Pinto Valley tenement has identified a number of new mineral

occurrences. Copper mineralization was observed at a number of contacts between two

genetically different granitic bodies. Surface exposure of porphyry breccia systems were also

found bearing pyrite and chalcopyrite in a jarosite-dominated oxide precipitate. These sites were

analyzed with field portable TerraSpec which detected dickite, indicating hydrothermal

alteration. A number of massive magnetite/hematite seams bearing manganese, pyrite, and

copper were mapped in skarn contacts around the fringe of limestone bodies. A skarn

occurrence was found in contact with an intrusive Diabase unit bearing a stockwork of sulphide-

rich "D" veins. Also a number of old workings were found throughout the area, testing a range

of copper-bearing geological settings, such as porphyry stock, pegmatitic intrusive, mineralized

skarn, intrusive contact, and oxide occurrence under tertiary cover.



FIGURE 7-3: SURFACE GEOLOGY MAP OF THE PINTO VALLEY MINE (PETERSON ET AL, 1951)

FIGURE 7-4: OREBODY CROSS SECTION

3000 W LOOKING WEST (BHP, 2007)



7.1.2 Local Geology and Alteration

The following sections describe the main rock, alteration, and mineralization types on site as

shown in Figures 7-5, 7-6, and 7-7.

FIGURE 7-5: PINTO VALLEY GEOLOGY PLAN (BHP 2012)



FIGURE 7-6: GENERALIZED COLUMNAR SECTIONS OF SEDIMENTARY AND VOLCANIC ROCKS, CASTLE DOME

AREA (PETERSON ET AL, 1951)



FIGURE 7-7: PINTO VALLEY ALTERATION PLAN (BHP 2012)



Pinal Schist

Lower Precambrian Pinal Schist is a fine-grained, well-bedded sediment dominated by biotite

lesser muscovite and quartz, and in some areas, such as south of the south hill fault, bears

garnet and chlorite. Grain sizes range from coarse quartz sericite schist to fine-grained

quartz, sericite, and chlorite schist which at times displays magmatic segregation of biotite

and quartz-rich seams up to 15 cm wide. The rock is extensively deformed bearing tight to

isoclinal folding and faulted extensively by various intrusive events.

Dripping Spring Quartzite

Precambrian Dripping Spring Quartzite contains a range of internal variation from upper

coarse to medium-grained quartzite with cross bedding to lower thinly laminated fine-

grained, well-sorted sediments at the base. This unit is typified by variably-coloured beds of fine

sediment that display the well sorted nature of the rock which preserves current direction and

energy regimes. Beds range from red-brown to red-purple to purple-black alternating with thin

beds of arenatious shale.

Mescal Limestone

Mescal Limestone, a sedimentary unit, was observed mainly in the northwestern part of the study

area. It is comprised of limestones, dolomites, and large amounts of chert. This Precambrian

unit overlies the Pinal Schist and is overlaid by the Precambrian Basalt.

Precambrian Basalt

Precambrian Basalt, a basic volcanic unit, was recognized in the northern limit of the Pinto

Valley tenements. This rock has a black colour, with vesicles and some calcite-calcedonic

amygdales. This unit overlies the Mescal Limestone and is cover by the Troy Quartzite.

Troy Quartzite

Troy Quartzite, a Cambrian unit, is a distinct marker unit underlying the Martin Limestone,

with unconformable boundaries separating upper and lower limestone units. Welded by cherts

and siliceous cements, this fine-grained sediment is very resistant to weathering, and, therefore, it

forms ridges and escarpments adjacent to limestone units. Where outcropped, the quartzite is

a well- bedded, well- sorted unit forming gullies and gorges when exposed, sculptured by

surface water ways. A quartzite conglomerate bed exists at the base of this unit comprised of

well-rounded quartz pebbles in a sandy silicified matrix; iron oxide staining gives this rock is

characteristic red-brown colour.

Martin Limestone

Martin Limestone is a massive sequence of layered brown to grey-coloured carbonatious rocks

with only a minor presence of fossil fragments. It is interbedded with fine red sandstones and

shales. This unit overlies the Troy Quartzite and it underlies the Escabrosa Limestone.



Escabrosa Limestone

Escabrosa Limestone is a more massive, poorly-bedded limestone; this unit outcrops as bold cliff

faces appearing as a medium to light grey colour underlying the Narco Limestone. Mississippian

in age, these lower beds appear oolitic with nodular calcareous formations; some beds contain

crionoid fragments.

Naco Limestone

Naco Limestone is thinly-bedded and has a mid-grey colour with thin laminations of calcareous

sediments and marls separating limestone beds displaying crinoids, bivalves, and other marine

fossil fragments. Lower horizons and the basal unit are especially comprised of cherts, marls and

well-bedded calcareous sediments.

Whitetail Conglomerate

Tertiary in age, the Whitetail Conglomerate is distinguished from other sedimentary units by

the exclusion of dacite and tuff lithologies. Mostly well-bedded, often hematite-rich in both

matrix and coating of clasts, this unit only outcrops where it is revealed by the erosion of the

dacite cover. The unit is matrix-supported, generally well-bedded displaying gradational

fining-up sequences. Clasts are subrounded to angular in a poorly sorted matrix with some

quartzite horizons comprised of well-rounded quartz-rich and lithic fragments cemented by

coarse quartz sands. This unit overlies and postdates mineralization; therefore, it has little

potential for economic value.

Gila Conglomerate

The Gila Conglomerate unit overlies and is the youngest of all sedimentary units of tertiary

and quaternary age. The unit is distinguished by the inclusion of all local lithologies: the

Apache Group, Paelozoic Limestones, Diabase, and dacite tuff with some Pinal Schist

fragments. Poorly sorted but in parts moderately well-stratified, it is compositionally matrix-

supported. The unit is comprised of dominantly cobble to pebble-sized subrounded clasts.

The composition of the rock is highly variable, often representing the dominant local lithology.

Clast sizes decrease to the east of the project area where the unit becomes more of a distal

fan conglomerate with bedding stratification. This unit overlies and postdates

mineralization; therefore, it has little potential for economic value.

Tertiary Alluvium

Tertiary Alluvium is a poly-lithologic detritus of some boulder-sized, but mostly cobble and

more finely-sized, poorly sorted and poorly cemented sediments. Detritus lines low lying areas,

commonly occurring at the base of steep slopes undergoing active erosion. Components often

show evidence of reworking, resedimentation, and welding by modern calcrete and silcrete

cements.



7.2 INTRUSIVE PHASES

In the Pinto Valley project area, a series of intrusive bodies have been mapped with litho-

chemistries ranging from intermediate to acid digenetic composition. Units have been

classified using mineralogy, crosscutting, and inclusion relationships into an order of

emplacement. The intrusive history of Porphyry Copper (Molybdenum) emplacement in the

Pinto Valley district is classified into pre, intra and post-mineralization stages. Descriptions

of copper-bearing intrusive events are detailed below.

7.2.1 Pre-Mineralization Intrusives

Manitou Granite

Manitou Granite is prevalent in the southeast portion of the study area, approximately 700 m

from the Pinto Valley pit. Occupying an area of approximately 0.2 km2 and outcropping as

elongate bodies trending in a northeasterly direction, this unit intrudes the Precambrian Pinal

Schist basement. The Manitou Granite itself has been intruded by Precambrian Ruin Granite

and a series of fine and course-grained aplitic intrusive phases related to this magmatic event.

The Schultze Granite was the last unit to intrude the Manitou Granite in a much later tertiary

period.

Macroscopically this rock is dark brown with a phaneritic texture; it is equigranular, medium-

grained, with anhedral crystals of quartz (20%), subhedral undifferentiated mafics (7%), anhedral

muscovite (5%), orthoclase (25%), and subhedral-euhedral-subhedral plagioclase (38%).

This unit has a prevalent slight to moderate foliation which has deformed the original

equigranular texture. Minerals are generally elongate with the long axis of grains ordered in a

preferred orientation or, in some cases, partially destroyed: this has been observed in some

locations with respect to mafic minerals. Manitou Granite is the youngest Precambrian Intrusive.

Willow Spring Granodiorite

Willow Spring Granodiorite is an intrusive unit that outcrops in the southeastern sector of the

study area, occupying approximately 0.4 km2. This unit outcrops as elongate bodies trending

north-northeast, intruded by Precambrian Ruin Granite and also by the Tertiary Schultze

Granite. It is also in fault contact with the Gila Conglomerate unit.

Macroscopically this granite is mottled by dark brown minerals, has a slightly porphyritic,

phaneritic and inequigranular texture with medium-sized grains. The rock is comprised of quartz

anhedral-subhedral (15%), biotite-amphibole (12%) which is partially replaced by chlorite,

orthoclase (15%) subhedral-euhedral of sizes ranging from 4-10 mm, and subhedral-euhedral

plagioclase (38%).

This intrusive unit is Precambrian age; this has been determined by crosscutting relationships,

and has also been dated by Creasey (1980).



Ruin Granite

Ruin Granite is an intrusive unit that outcrops over an area of approximately 2.1 km2, which

has been exposed primarily by the excavation of the Pinto Valley pit. This rock is the primary

host rock of copper mineralization in economic concentrations and has been dated at

Precambrian age (Creasey, 1980). The granite has also experienced a series of magmatic-

hydrothermal events resulting in the emplacement of porphyry copper systems. The Ruin Granite

is in fault contact with the Pinal Schist unit to the south and a stacked series of faults to the

west, with repetitious sedimentary units. Granites of the southeastern sector of the study area

have been intruded by the Willow Spring Granodiorite and Tertiary Schultze Granite, and in

one area it is in fault contact with the Gila Conglomerate. A zone to the north of the Pinto Valley

pit puts the Ruin Granite in contact with Precambrian Dripping Spring Quartzite sediments and

Diabase dike intrusions.

Macroscopically, this rock has pinkish-brown colour, with phaneritic, inequigranular coarse

texture with anhedral quartz crystals (25%), anhedral-subhedral biotite (7%), anhedral

muscovite (3%), subhedral-euhedral orthoclase (35%) with some phenocrysts up to 60 mm,

and subhedral-euhedral plagioclase (38%).

There have been a series of aplitic phases related to Ruin Granite emplacement, the highest

concentration of these is in the southeastern sector of outcrop. Numerous small dykes also

occur within the Pinto Valley pit. The aplitic intrusives are a pinkish-brown colour, dominated by

equigranular quartz; they have a fine-grained sugary texture, and are dominated by potassic

feldspar. The intrusive complex related to the Ruin Granite has Precambrian age (Creasey, 1980).

Diabase

Diabase is a sub-volcanic Cretaceous or later unit that is most prevalent in the northern area of the

project, but it also occurs as sills and minor dykes throughout most of the project area. This unit

occupies approximately 1.5 km2 of the project area. The Diabase most commonly intrudes

Precambrian units, such as the Apache Group sediments and Ruin Granite. The unit is generally

covered by post-sedimentary units, including the Martin, Escabrosa, and Naco Limestones,

and is partially covered by Gila Conglomerate and the Apache Leap Tuff.

This unit is of fine to medium-grained mafic composition, bearing pyroxene and hornblende

mafics minerals, and lesser plagioclase. This unit has different phases, with early medium to

coarse textures that range to later, fine-grained, textured intrusions.

This unit commonly contains 1% to 2% disseminated pyrite and trace chalcopyrite, but it will

bear stronger sulphide content, especially chalcopyrite when proximal to a porphyritic source.



Schultze Granite

Schultze Granit is Tertiary in age; this plutonic body has been dated at 61 Ma from similar

outcrops sampled in the Miami-Inspiration area (Creasey, 1980). This unit represents the main

pre-mineral stage of the Laramide intrusions and the magmatic source of the metal-bearing

porphyritic intrusions in the district. This unit outcrops generally in the southern part of the

project area with batholitic dimensions of 1.5 km2 outcrops. This unit has also been observed

intruding the Ruin Granite and Pinal Schist. In some places, the unit is covered by the Quaternary

basalt and is in fault contact with the Gila Conglomerate.

Macroscopically, this rock has phaneritic texture and inequigranular texture of medium to coarse-

sized grains, with books of biotite (8%), subhedral 1-3 mm sizes, quartz (20%), subhedral 2-8

mm sizes, K-Feldspar of orthoclase variety (25%), subhedral-euhedral 3-15 mm sizes, and

plagioclase (47%) with 2-4 mm sizes.

7.2.2 Intra-Mineralization Intrusive Phases

In the Pinto Valley district a suite of porphyritic intrusive units have been identified that have age

and genetic relationships with a number of igneous events. Intrusives were found to have a

composition varying from Quartz Monzonite to Granite. The following sections describe these

units.

Early Granite Porphyry

A family of porphyritic intrusives appear in the form of dykes and stocks in the central sector of

the Pinto Valley pit. A number of small finger-like projections stemming from granitic porphyry

stocks and dykes also exist in the western section of the pit, with a predominant northeast trend.

This Early Granite Porphyry unit has been observed intruding the country rock Ruin Granite, and

has been observed to have been crosscut by the Intramineral-late granodiorite phases.

Macroscopically, the rock is pinky-brown to grey in color, phaneritic, of porphyritic texture with

an inequigranular grain shapes. Mineral composition comprises 40% phenocrysts with

approximately 60% groundmass characterized by aggregates of quartz and feldspar: quartz eye

phenocrysts (3% to 7%) are euhedral-subhedral that range between 2-4 mm in size; books of

biotite (5% to 8%) are subhedral that range between 1-3 mm in size; orthoclase feldspar occupies

(20% to 25%) are euhedral-subhedral that range between 3-5 mm in size; and, plagioclase (60%

to 65%) are subhedral-euhedral that range between 2-5 mm in size.

There are a number of additional observations for this unit that are associated with magmatic-

hydrothermal activity and suggest this intrusive phase is responsible for introducing

mineralization into the Pinto Valley system. It has been recognized that a clear relationship exists

between the development of strong late-magmatic and early hydrothermal potassic alteration (K-

Feld, biotite, and silica). Early hydrothermal activity has also produced extensive quartz “A” vein

development, along with sulphide mineralization where chalcopyrite content is greater than



pyrite. The presence of quartz "B" veinlets with minor molybdenite content also occurs in close

proximity to the "A" vein sets.

Intramineral Granite Porphyry

An intramineral phase of phorphyry has been identified in the northeastern sector of the Pinto

Valley pit. Intramineral Granite Porphyry outcrops as a stock elongate in an east-west direction

hosted in Ruin Granite, though crosscutting relationships were not observed between this and the

Earlier Granite Porphyry. This intrusive unit mainly crosscuts the Ruin Granite country rock,

Pinal Schist, and Diabase lithologies.

In a hand specimen this rock is brown-grey in colour, with a phaneritic texture, inequigranular

with a strong porphyritic texture with 40% to 45% phenocrysts and remaining 55% to 60% as

groundmass with aggregates of quartz and feldspar. Mineralogically, eye quartz comprises 10%

to 15% of the rock; grains are euhedral-subhedral and range between 2-4 mm in size. Books of

biotite comprise 3% to 5% and grains are subhedral and range between 1-3 mm in size.

Orthoclase feldspar comprise 30% to 35% and grains are euhedral-subhedral and range between

of 4-10 mm in size, and plagioclase comprise 50% to 55% and grains are subhedral-euhedral and

range between 2-5 mm in size.

This porphyritic unit exhibits minor hydrothermal alteration and only displays minor potassic

alteration and “A” quartz vein sets. Minor disseminated mineralization has been observed; the

unit was found with a zone of strong phyllic alteration in the Pinto Valley deposit associated with

extensive “D” veining. The observed mineralogy and alteration styles suggest that this intrusive

was emplaced later in the magmatic-hydrothermal history of Pinto Valley porphyry copper

deposit.

Intramineral-Late Granodiorite

The Intramineral-Late Granodiorite unit outcrops as a large body in the southeastern area of the

Pinto Valley project with a second zone in the west mapped as northeast-trending minor bodies.

Crosscutting relationships suggest that this unit intruded both porphyritic units in the mine.

In a hand specimen this rock is grey-brown in colour with a phaneritic texture; it is equigranular,

fine to medium-sized grain with the following mineral composition: hornblende (5%), subhedral-

euhedral 1-2 mm size; books of biotite (5%), subhedral 1-2 mm size; K-feldspar (10%) subhedral

2-3 mm; quartz (12%), and crystals of plagioclase (68%) subhedral to euhedral with 2-3 mm in

size.

This unit exhibits only minor mineralization as 1% to 2% disseminated pyrite-chalcopyrite; thin

quartz veins exist but are generally unmineralized. Only weak hydrothermal alteration was

observed and described as a weak potassic alteration; this suggests that this intrusive unit was

injected late in the Laramide intrusive history. Crosscutting relationships indicate that this unit

truncates the late-magmatic potassic event.



Porphyritic Granodiorite

The Porphyritic Granodiorite intrusive unit was observed in the southwestern boundary of the

Pinto Valley area as a small body intruding into the Pinal Schist and the Schultze Granite (Figure

7-4).

In a hand specimen, this unit has medium-sized grains, inequigranular with some porphyritic

textures. Mineral composition is: quartz (10%) anhedral 1-3 mm in size; books of biotite (8%)

subhedral-euhedral size of 1-3 mm diameter; hornblende (2%) subhedral averaging 1-2 mm; K-

Feldspar (15%) subhedral 2-4 mm diameter; and, plagioclase (65%) subhedral-euhedral that

range between 2-6 mm.

This intrusive was found at a site which had been disturbed by a small shaft and old

workings. Copper oxide was evident coating rocks close to the mouth of the small mine

opening. Minor hydrothermal alteration was observed as chlorite replacing mafic minerals. This

intrusive is most probably related to the granodioritic intrusive event in the Pinto Valley

area.

Breccia Porphyry

Near the southeastern boundary of the Pinto Valley Mine area, two sub-outcrops of a unit with

intrusive brecciaed features were found. This unit is called Breccia Porphyry and intrudes the

Ruin Granite as a small dike swarm (Figure 7-5).

In a hand specimen this unit displays a brecciated texture, comprised predominantly of a

groundmass material (approximately 70%), with surrounding fragments of rock and broken eye

quartz (10-15%) that range in size between 2-4 mm.

This unit was tested using a PIMA spectrometer for hydrothermal alteration minerals revealing

an upper crustal association of dickite-kaolinite-pyrite. Some leaching of minerals, mainly

jarosite and minor goethite, were also confirmed by TerraSpec analysis. This is an extremely

important finding because the mineral is associated with the advanced argillic alteration zone in

the upper crust.

Microscopic study of thin sections revealed the presence of a brecciated texture. Intrusive

fragments of granite monzogranite were observed with clearly defined borders, only some had

moderately rounded margins indicating a lack of any reaction with the matrix. The matrix is

composed of rock flour, various clay species, disseminated dickite, and traces of muscovite and

brown biotite.

Features described in this rock suggest a stage of phreatic brecciation, possibly related to the

activity of a nearby hydrothermal system.



7.3 REGIONAL STRUCTURAL FRAMEWORK

A number of structural events were identified during the mapping exercise showing a high level

of complexity in both the extent of deformation and the timing of the various events.

Considerable deformation of the units has persisted from the Precambrian era to Tertiary Basin

and Range events involving reactivation of many earlier structures.

The main structures identified in the project are related directly to a set of lineaments, faults, and

fractures with north-south orientation (Figure 7-8).

The oldest fault observed is the South Hill Fault. Field observations suggest that this fault

controlled the emplacement of all the Precambrian intrusive phases along a northeast trend.

The last reactivation along this fault has reverse movement, with a southeastern dip which

has truncated mineralization of the Pinto Valley deposit; this fault has placed the Pinal Schist

over the Ruin Granite.

Most north-south structures are a product of extensional deformation from the Basin and Range

event; the best example is the Gold-Gulch Fault that separates, via horst and graben blocks,

the Apache Group sediments and the Ruin Granite, respectively. Other big faults are the Dome

Fault and the Jewel Hill Fault with normal movement, displaying more restricted deformational

features.

Locally, the fault systems at surface present a north-northwest pattern with normal

movements. Some minor reverse and transcurrent faults were observed and are closely related

to the huge structures like Riedel-type faults, which all show subvertical dips.



Note: South Hill Fault, Gold-Gulch Fault; Dome Fault; Jewel Hill Fault and the blue colour represent the

secondary structures.

FIGURE 7-8 LOCATION AND DISTRIBUTION OF THE MAIN STRUCTURES OF THE PINTO VALLEY DISTRICT



8 DEPOSIT TYPES

Pinto Valley is classified as a copper-molybdenum porphyry system. A large volume of literature

exists on porphyry deposits because of their large size and economic importance. The following

description of a porphyry deposit is from a summary by Sillitoe (2010):

“Porphyry deposits are typically centred on polyphase stocks and porphyry dyke swarms, with skarn

deposits formed adjacent to and epithermal deposits above the porphyry mineralization (see Figure

8-1). The metal endowment of a porphyry system is related to the geochemistry of the oxidized

magmas that contribute to the formation of the stocks and dykes, with gold and/or molybdenum

commonly found in association with copper. Porphyry deposits typically occur in association with

Mesozoic and Tertiary intrusions, probably as a result of poor preservation of older rocks.”



FIGURE 8-1: ANATOMY OF A TELESCOPED PORPHYRY SYSTEM (SILLITOE, 2010)

Porphyry systems are typically zoned from a potassic-altered (biotite-potassium feldspar) core

overlying barren, calcic-sodic altered rock, upward through phyllic-altered (sericite or chlorite-

sericite) margins to propylitic-altered (chlorite-epidote) rocks (Figure 8-2). Porphyry systems also

grade upward into advanced argillic, argillic, and silicic alteration related to epithermal

mineralization. Alteration zoning may be complex and overlapping due to successive injections of

magma into country rocks. The vertical distance between porphyry mineralization and overlying



epithermal mineralization may range from one telescoped kilometre to several un-telescoped

kilometres.

FIGURE 8-2: GENERALIZED ALTERATION-MINERALIZATION ZONING PATTERN FOR TELESCOPED PORPHYRY

COPPER DEPOSITS (SILLITOE, 2010)

Hypogene copper mineralization is disseminated and veinlet-hosted, and zoned from bornite-rich in

the core through chalcopyrite to pyrite in distal areas. Magnetite (in copper-gold porphyries) and

molybdenite (in copper-molybdenum porphyries) are common accessory minerals.

Quartz veins and veinlets as stockworks and sheeted arrays are ubiquitous in these systems, and

typically occur in a sequence from early quartz-feldspar "A" veins, through quartz-sulphide (mainly

chalcopyrite-molybdenite) "B" veins with potassic-altered margins to late, sulphide-dominant

(primarily pyrite) "D" veins with phyllic-altered margins (Gustafson and Hunt, 1975) , as shown in

Figure 8-3. Veining in copper-gold deposits may differ slightly, with quartz-magnetite-chalcopyrite

and magnetite-dominant "M" veins present or dominant (Arancibia and Clark, 1996).



FIGURE 8-3: PINTO VALLEY ALTERATION AND MINERALIZATION PLAN MAP (BHP, 2012)

Due to the large amount of disseminated pyrite in most porphyry systems, these systems are

susceptible to supergene weathering and leaching. Copper is oxidized and leached from areas above

the water table and deposited as chalcocite and other supergene copper minerals at or near the water

table, leading to enrichment in copper grades. Supergene chalcocite enrichment can increase grades

locally by 200% to 300% or more, with a significant impact on the overall economics of these

deposits.



Alteration and mineralization associated with high sulphidation epithermal deposits in the upper

portions of porphyry systems consist of pyrite, enargite, and covellite hosted in silicified and often

brecciated silicified volcanic rocks, accompanied by advanced argillic alteration minerals, including

pyrophyllite, alunite, dickite, and kaolinite (Hedenquist et al, 2000). Alteration and mineralization at

this elevation in the system comprise a lithocap and may be far more laterally extensive than the

porphyry deposit itself.

Proximal skarn deposits are typically located laterally from porphyry deposits (Meinert, 2000). They

consist of replacement bodies within (endoskarn) or marginal to (exoskarn) the causative intrusion.

Skarn may be particularly well-developed in limestones and other calcium or carbonate-rich rocks.

Skarn alteration assemblages include garnet, pyroxene, wollastonite, magnetite, actinolite, pyrite,

magnetite , and chalcopyrite.

Copper-molybdenum porphyry and skarn mineralization are all found in close proximity in the Pinto

Valley area. Mineralization is associated with an overlap of phyllic and potassic alteration, a

supergene chalcocite blanket, and adjacent areas of hornfelsing and skarn alteration.



9 EXPLORATION

Surface mapping has been the main source of additional data throughout the identification phase for

Pinto Valley 2 (PV2). Two campaigns were conducted on separate occasions to improve both the

geotechnical and geometallurgical knowledge of the deposit. All work stated in this section was

performed by or on behalf of BHP.

The surface mapping for geotechnical information focused primarily on the bedding planes, major

structures, and overall geological strength index. As a result, a more targeted geotechnical testing

program has been developed for the selection phase.

Various ore-types were confirmed using surface mapping and by reviewing core logs. Alteration

zones and ore-types were identified in the pit wall and correlated against core samples taken in

previous drill campaigns. The visual ore classification will be confirmed (and refined if necessary)

using the laboratory petrographic facilities, labspec, and whole rock chemical analysis.

Descriptions from the core logs were used to plot the correlation between rock type and alteration

zone (Figure 9-1) using ioGlobal software. On completion of this analysis, the primary ore-types

were classified to determine the necessary sampling program for the selection phase. Table 9.1

shows the proportion of ore-types in the overall deposit for PV2. The most important ore-types were

narrowed down to Ruin Granite, Quartz Monzonite, and Diabase (ore types 1, 2, and 4, respectively,

are shown in Table 9.1). These ore-types are based on relative abundance, gangue mineralogy,

copper grade, alteration, and the potential impact on overall production (recovery, throughput , and

consumption of reagents/energy).

FIGURE 9-1: INTENSITY MAPPING OF MINERALIZATION TO DEFINE DOMINANT ORE-TYPES.

Ruin Granite/Biotite

Quartz Monzonite-

Porphyry/Chloride/Clay

Quartz Monzonite-

Ruin granite/No Alteration/Sericite

Diabase//Calcite-

Biotite-No alteration

Aplite/No alteration-

Sericite

Granodiorite/



TABLE 9.1: ORE TYPE SUMMARY FOR PINTO VALLEY DEPOSIT

Ore ID Ore-Type TCu% Range Averge TCu% Observed Proportion Alteration

1 Ruin Granite/Quartz Monzonite 0.2 – 0.40% 0.37% 80-85% Potassic

2 Quartz Monzonite (with quartz veins) 0.2 – 0.40% 0.36% 6-10% Potassic

3 Granite Porphyry 0.2 – 0.25% 0.22% 5-8% Quartz Sericite

4 Diabase 0.2 – 1.0% 0.45% 2-3% Potassic

5 Aplite 0.2 – 0.25% 0.20% 1-2% Potassic

6 Quartzite/Granodiorite 0.2 – 0.25% 0.22% 0-1% No alteration

During the brownfield surface mapping campaign in the Pinto Valley district a number of new

copper mineralization occurrences were identified. Three principal targets zones are presented

below.

9.1 KOZI PROSPECT

Mapping over the Ruin Granite, southeast of the Pinto Valley pit, a zone of small bodies with a

brecciated texture (Breccia Porphyry) was found bearing some evidence of hydrothermal

alteration, relict sulphide boxwork, and some pyrite grains. Outcrop is generally poor due to the

steep angle of hill sides and narrow but rounded ridge tops. It is difficult to find moderately

fresh rock in this area; most surface material is extensively weathered and or loose surface

rubble.

Particular attention was paid to the bleached-looking alteration of feldspars; spectral

analysis suggests the presence of Dickite-Kaolinite. Small 1 mm diameter muscovite flakes

appear to be a later generation of alteration; biotites are also altered and act as a nucleus around

which sulphides have precipitated. Sulphide boxwork and primary pyrite grains were

recognized. This zone of clay alteration appears to cover an area of approximately 20 m2, and

is strictly related to the Breccia Porphyry.

Further evidence of alteration and porphyry emplacement was observed and this was confirmed

to be a thin section of breccia with a rock-flour matrix, broken quartz fragments, and the lithics of

granitic compositions along with the presence of kaolinitic clays and dickite in the matrix

.

The reflected-light thin section of this rock shows the presence of sulphides, mainly pyrite and

minor chalcopyrite in the matrix of breccia, which has been partially replaced by goethite. Note:

These rocks are partially leached.

This reflected-light thin section clearly indicates that this rock is a breccia, suggesting a

hydrothermal origin related with phreatic stages. This is because it has a majority of subrounded



fragments and lower metal content along with the presence of rock-flour matrix and development

of advanced argillic clays.

Mapping the boundary of Ruin Granite 120 m to the southeast of the Breccia Porphyry, a zone

bearing copper oxides along the Schultze Granite contact was evident. Oxides coat Shultz Granite

outcrop and subcrop, especially in an area surrounding a milky quartz vein. The vein is generally

very vuggy and bears boxwork after sulphide dissolution. At Site 361, copper oxides are

dominantly comprised of malachite and azurite precipitating with siliceous cement over an area

of approximately 25 m2 of subcrop. Chemical assay reports for samples taken from this area

indicate > 1% Cu (Table 9.2).

The copper oxide species indicate that it originates within the quartz veins. Veins contain

abundant (up to 4%) course-grained chalcopyrite with some grains up to 5 mm; some are

moderately fresh, and goethite boxwork runs extensively through the centre of the vuggy coarse

vein. Note: The Ruin Granite-bearing disseminated chalcopyrite also contains coarse muscovite,

calcite, and quartz. The rock displays some in situ oxidation of chalcopyrite, with copper oxide

precipitation on the muscovites and micas. Contact-style mineralization between the two

genetically different granites is most prevalent in the Ruin Granite, which occupies the northern

flank of this feature.

Microscopic description indicates coarse-grained texture granite, with minor deformation of

quartz, some subhedral orthoclase, and replacement of a later phase of coarse muscovite and

calcite.

TABLE 9.2: CHEMICAL ASSAYS RESULTS FOR RUIN AND SCHULTZE GRANITE

Sample Cu ppm Mo ppm Ag ppm Zn ppm

75163 Ruin Granite 128 34.8 < 0.1 177

75164 Ruin Granite 3780 37.2 0.9 204

75165 Schultze Granite

> 10000 21.8 < 0.1 978

75181 Ruin Granite 7930 286 3 578

The chemical assay report for samples with chalcopyrite in the Ruin Granite show important

anomalous content of copper, molybdenum, silver, and zinc (Cu-Mo-Ag-Zn) (Table 9.2).

One hundred and fifty metres to the northeast of Site 361 in a creek line to the south, at the base

of the above feature, float-bearing magnetite was encountered at Site 363. The source was not

found; however, the float displayed a vuggy rock re-welded with hematite (martite).

Appearing as an extensively altered Ruin Granite with coarse muscovite, no outcrop exists at this

site; however, there were a number of float rocks in random locations in this vicinity. Rock chip

samples bearing magnetite returned encouraging results from multi-element assay reports



displaying anomalous copper; it is expected that this rock is also anomalous in gold, although

assays are still pending. Surrounding this location, goethite and chalcopyrite grains up to 3 mm in

diameter in Ruin Granite were observed in a rock with moderate to strong coarse muscovite. This

altered zone appears to be locally related to the intrusion of Schultze Granite, but the anomalous

mineralization of Cu-Mo-Ag-Zn suggests that this system must be surrounding a hydrothermal

system. Evidence of hydrothermal alteration was not observed in relation to the porphyritic

system, but an intense hydrolytic event is related to the coarse muscovite in Ruin Granite.

This prospect has two types of geological indicators of hydrothermal activity. The first indicator

is the phreatic breccia, with occurrences of dickite-kaolinite and pyrite; this suggests that this

zone has been exposed to advanced argillic alteration. This is because dickite-kaolinite exists in

the upper crustal conditions following hydrothermal alteration associated with porphyry copper

emplacement. The specimens tested may belong to the roots of an advanced argillic-altered zone,

as evidenced by the presence of remnants that usually follow extensive weathering and erosion.

The second indicator is related to the Cu-Mo anomalies in the Ruin Granite: all the features

suggest a possible connection to the pegmatite zones related to the intrusion of granitic magma--

in this case, the Schultze Granite.

9.2 BONDI PROSPECT

The Bondi Prospect is related to the Dripping Spring Quartzite, and some zones with hornfels of

biotite-magnetite outcrop as a 90-metre high cliff face and narrow gully incised by active creek

systems, near the tails facility. The quartzite is very fine to fine-grained, well bedded, well sorted

quartz dominated sediment with minor pebble conglomerate beds. On a number of cliff faces in

this gully, copper oxides line exposed surfaces and natural cave formations. The oxides, including

malachite and azurite , appear to have been introduced via seep of underground aquifer

movement.

Sediments in some bands near the occurrence of copper oxides are studded with up to 4% fine-

grained disseminated mineralization and little veins of pyrite grains, and possible chalcopyrite.

These beds are discrete, greater than 10 m from oxide occurrences; sediments exhibit a much

lower 1-2% disseminated mineralization. The area warrants further review to identify the source

of copper oxide precipitate.

A unit contact between the Mescal Limestone and the Dripping Spring Quartzite exhibited

hematite and iron oxide seams in replacement silica rich beds. Narrow seams of limestone have

been replaced by a calc silicate event forming wollastonite crystals up to 3 mm in diameter,

diopside, and disseminated pyrite and minor chalcopyrite.

Some bands have been metamorphosed and marbleized into light green, very hard chert-rich beds

which are strongly outcropped and more resistant to weathering. In this area, limestone beds

predominantly displayed disseminated magnetite over an area of 150 – 200 m.



Near the tailings dam, at Site 1118, a series of massive magnetite veins outcrop at up to 40 m

long and 3 m wide. As massive magnetite veins , these replacement beds are very hard and

resistant to weathering, contain abundant hematite oxide and some disseminated pyrite and

possible traces of chalcopyrite and bornite. These wide veins and narrower outlying magnetite

veins are parallel-bedded, produced by dissolution and replacement of calcareous horizons.

This site displays a high development of prograde skarn alteration indicated by the development

of brown garnet, pyroxene, diopside, and wollastonite. Wollastonite grains are particularly well

developed, up to 4 mm in diameter with well formed crystal habits. Diopside and garnets are

fewer and rarely occur in close proximity to massive metalliferous veins.

A retrograde mineral assemblage has also been observed comprised of chlorite, magnetite,

hematite, pyrolusite, and silica. Sulphide assemblage includes pyrite and traces of chalcopyrite

and bornite in limestone beds. A Diabase sill injected into the Mescal Limestone has explored a

bedding parallel zone, mapped in road cutting outcrops within the Mescal unit. The Diabase unit

has numerous iron oxide veins as a stockwork of near vertical vein sets at approximately 30 cm

intervals, regularly between 0.5-1.5 cm in diameter. The vein wall rock interface alteration is also

strongly iron-stained; very little quartz was observed in the iron oxide vein sets. The vein set post

dates the Diabase emplacement as veins cross cut the body and penetrate a short distance into the

surrounding limestone beds.

It is difficult to state the copper source at this prospect due to the oxidation observed in the

quartzites, and it is important to note that this state is structurally complex and partially covered

by post-mineral cover (Whitetail Conglomerate). The skarn evidence may be related to the

Diabase intrusions, but the presence of strongly altered rock and a source of sulphur and metal

can precede a close granitic source. It is important to note a stockwork of leached veins was

found in the Diabase, which is possibly related to another fluid source.

9.3 MATI PROSPECT

Mapping in the limestones sequences 250 m to the northeast of the pit revealed a skarnification

zone, identified by prograde stage development of pyroxene and wollastonite and retrograde stage

of epidote. Both are associated with iron replacement stages in the limestones with injection of

sulphide to the system, represented by pyrite-chalcopyrite and bornite. The supergene process

was observed with the presence of copper oxide mineralization, mainly malachite and azurite.

This zone is related to old mine workings. The magnetite, sulphide bed had a 50 x 50 m zone that

varied from 4 to 12- metre orientated bedding parallel to the limestones.

This prospect is particularly interesting because the presence of copper sulphides related to the

magnetite replacement suggests an origin associated with a tertiary intrusion. This is because the

host rocks are Paleozoic limestones that formed post-Diabase intrusion; in this case, the only

probable source must be related to a later intrusive.



9.4 OTHER COPPER OXIDE EXPLORATION

Two small zones with copper oxide mineralization were identified. The first one was in the

southwest boundary of Pinto Valley, near the Carlotta mine cross road. An old mine of copper

oxides was discovered: the mineralization is primarily comprised of malachite and is related to a

dyke of Porphyritic Granodiorite. This rock intrudes the Schultze Granite and is a restricted body

with anomalous concentrations of greisens veins bearing copper sulphides. No disseminated

mineralization was observed.

Another occurrence of copper oxides was found in an outcrop of Apache Leap Tuff related to a

small paleochannel in an active creek. The mineralization observed consists mainly of

chrysocolla, black copper oxides, and minor malachite. This zone extends for only 5-6 m and no

primary source was detected.



10 DRILLING

A data room was setup by BHP to disclose information and reports, including the drill hole data,

required during the due diligence process; these data continues to be available until the purchase

date of the property. Drilling documentation was limited to internal reports, and there were no

listings for vintage data, methods used, or pre-2010 drilling procedures, other than those found in the

internal reports. A complete list of the drill hole collars included in the BHP Pinto Valley database

can be found in Appendix C.

The pre-2006 Pinto Valley drilling programs were comprised of a combination of core, rotary, and

churn drill holes. Churn holes defined much of the early Castle Dome reserve, which has been

mined out. Post-Castle Dome holes were drilled on an original spacing of 400 ft east-west and 200 ft

north-south. Later, drilling was done to infill the original grid to 200 ft spacing in some areas.

Drilling that has occurred since the 1986 block model was constructed includes 10 core holes (E 52

through E 61) and 3 reverse circulation rotary holes (RC62 through RC64) drilled in 1992. From the

beginning of 1996 to April 1997, 67 reverse circulation exploration and infill holes were drilled: 48

RC holes (AD and NR-Series totalling 29,665 ft) drilled in 1996, and 19 RC holes (WW and 97-

Series totalling 8,520 ft) drilled during 1997. The WW and 97-Series were drilled in the interior pit

and through the Gold Gulch and Continental faults. Seven of the exploration holes were drilled east

of the existing pit and laid the ground work for future plans of an east pit expansion, known as the

Satellite Pit.

The current Pinto Valley drill hole database contains a significant amount of drilling that defined the

grades in the block model that have been mined out, especially as they relate to the Castle Dome

mining activity shown in Figure 10-1.



FIGURE 10-1: DRILL HOLE SECTION SHOWING CURRENT TOPOGRAPHY AND PRELIMINARY OPTIMIZED PIT

All drill hole collar locations were surveyed. The majority of the drill holes are vertical and,

therefore, do not have downhole surveys. However, a majority of the inclined holes do have

downhole surveys.

From 2006 through 2008, there have been various drilling campaigns with mixed purpose:

delineation, exploration, geotechnical, and resource classification upgrade drilling. These include 18

G-Series geotechnical holes, 11 HW-Series holes in 2007, 17 PZ-Series holes drilled in 2008, 17 S-

Series holes drilled in 2008, 24 B-Series holes drilled in 2008, and 4 DH-Series holes drilled in 2008.

The most current drilling occurred in 2010 which focused on exploration, and in 2011 and 2012

which focused on infill drilling for resource classification upgrade in support of restarting operations.

Ten holes were drilled in 2010, 40 holes were drilled in 2011, and 64 holes were drilled in 2012.

Figure 10-2 shows a plan view with topography and the 2010, 2011, and 2012 drilling campaigns.



Note: 2010, 2011, and 2012 drilling shown in red, green, and blue, respectively.

FIGURE 10-2: DRILL HOLE PLAN

FIGURE 10-3: ALL DRILL HOLE COLLARS



The combined database (Appendix C) comprises 1,031 drill holes, as shown in Figure 10-3.

Note: Assay results were pending for seven 2011 holes and thirty-four 2012 holes at the effective

date of this report.



11 SAMPLE PREPARATION, ANALYSES AND

SECURITY

Once drilling is completed, the core is transported to the core handling facility. Here it is placed in

wax-covered core boxes with depth markers for every drill run of up to 10 ft. QuickLogs are done at

core reception which includes initial lithology and a visual estimation of mineralization and

alteration, particularly biotite content. The mine is set up on a bar code system for ease of handling

and to track the core and samples. There is a triple bar code tag: the first tag is for the half core that

remains in the box, the second tag is for the split that is sent to the lab for analysis, and the third tag

is for the coarse duplicate and is used to tag the pulps and rejects. The core is logged for geology and

split by saw at one of two stations.

The QuickLog data and the detailed logs are entered into an acQuire® relational database system

which also records the collar, survey, assay, lithology, alteration, mineralization, and geotechnical

(RQD) data. This data is tagged and tracked using the bar codes, and all subsequent assay

information provided by the laboratory, including the QA/QC data, is linked to the database. The

system is secured by BHP using protocols and procedures which appear to be extremely stringent. A

dispatch report is created which is then sent to the laboratory and subsequently matched against the

shipments. Deviations and discrepancies are reported and investigated. Any updated assay data from

the laboratory is linked to the bar code system and re layed to the company electronically via Excel®

CSV files and imported into acQuire® automatically. The data is imported into MineSight for the

purpose of resource estimation.

A number of different companies and laboratories have provided assay services to Pinto Valley over

the years. Details of sampling and assaying procedures used during the earlier stages of operation

are not readily available. Procedures used by outside labs that ran assays for some of the later drilling

campaigns, such as those performed by Mountain States for the RC holes and Chemex for the AD

holes, are also not readily available. The analytical procedures currently in place at Pinto Valley are

in line with industry standards for total copper, but procedures are BHP-specific with respect to acid

soluble copper (i.e., digestion with 10% sulphuric acid, placed in a hot bath at 40C, and read after

40 minutes).

Samples were assayed for total copper and acid soluble copper. Composites representing 30-50 ft of

the sample rejects were made and these composites were assayed for total copper, oxide copper,

molybdenum, sulphur, and trace metals of gold and silver. Comparisons were made between the

total copper and acid soluble copper assays from the original assay intervals and the composite

intervals.



Independent audits of the Pinto Valley assays were conducted in 1992 and 2000. Results were as

follows:

assay values in the Pinto Valley database have been reliably entered;

total copper assays in the Pinto Valley database are reproducible and can be considered

representative within normally-accepted limits of error;

total copper assays in holes below the current pit base can also be considered

representative within normally-accepted limits of error, except in the deeper parts of

some RC holes where they may be low-biased. However, using these assays to estimate

grades in the model is acceptable because they will tend to provide a conservative rather

than an overly optimistic estimation of grades;

acid soluble assays in the Pinto Valley database vary considerably depending on the

drilling campaign and;

reserves, resources, and production at Pinto Valley are reported as sulphide copper,

which is calculated by subtracting acid soluble copper from total copper. Because biases

exist in the acid soluble copper assays, this procedure generates sulphide copper values

that are biased relative to each other as a function of the drilling campaign. However,

sulphide copper values are only slightly lower than overall total copper values, so it can

be reasonably assumed that the sulphide copper values are also globally correct within

normally-accepted limits of error.

As part of the start-up Feasibility Study done in 2006, a QA/QC program was conducted on 101

randomly selected drill hole assay interval pulp samples and 15 randomly selected core assay

intervals. Samples were sent to Skyline Assayers and Laboratories (Skyline Labs) in Tucson,

Arizona to be analyzed for total copper and acid soluble copper. Skyline Labs was instructed to

analyze the samples for acid soluble copper using BHP lab procedures. Before the lab processed

these samples, BHP provided instructions for the pulp sample analytical procedures and also

provided a sequential pulp sample list. Included in this QA/QC program for the Feasibility Study

were seven sets of a known National Institute of Standards and Technology (NIST) standard pulps:

Copper Ore Mill Heads standard at 0.84% Total Copper, and a Copper Mill Tails standard at 0.091%

Total Copper. These known standard sets were inserted in sequential order for analysis preceding

the 15th pulp sample in the analytical run. All relative precisions are discussed at a 95% confidence

level (estimated using the Student’s T-distribution).

The analytical results from the standard samples are shown in Table 11.1 and Figure 11-1; both

include standards supplied by the Pinto Valley Operation project team (PVO) and those used by

Skyline Labs for internal QA/QC. A relative bias of -2% (Skyline Labs is lower than acceptable) is

determined from these samples, with a relative precision of 4% for the standards greater than 0.1%

Cu and 10% for the reference sample containing 0.09% Cu. These results provide an estimated

precision for pulp and instrumentation sampling.



TABLE 11.1: ANALYTICAL RESULTS FOR STANDARD REFERENCE MATERIALS

(2006 PINTO VALLEY Q/A PROGRAM)

Standard No.

Accepted

Value

Ave.

Skyline

Std. Dev.

Skyline

Relative

Difference

Relative

Std. Dev.

Relative

Precision

Inte

rna

l S

kylin

e

CGS-2 1 1.177 1.153 N/A -0.020 N/A N/A

CGS-3 1 0.646 0.650 N/A 0.006 N/A N/A

CGS-4 1 1.947 1.939 N/A -0.004 N/A N/A

CGS-6 1 0.318 0.317 N/A -0.003 N/A N/A

PV

O

High-grade 7 0.840 0.820 0.006 -0.024 0.007 0.017

Low-grade 7 0.091 0.089 0.004 -0.027 0.043 0.104

Total (All Samples) 18 0.589 0.579 N/A -0.018 0.033 0.070

Total (> 0.1% Cu) 11 0.906 0.891 N/A -0.017 0.021 0.048

FIGURE 11-1: ANALYTICAL RESULTS FROM STANDARD REFERENCE MATERIALS

The re-assay program for stored pulp samples shows that historical quality control measures used in

the PVO analytical laboratory were variable: at times they were extremely good, but at other times

y = 0.99x - 0.00

R2 = 1.00

0.0

0.5

1.0

1.5

2.0

0.0 0.5 1.0 1.5 2.0

Accepted Values (wt% Cu)

Skyli

ne V

alu

es (

wt%

Cu

)

Skyline Standards

PVO Standards



they were lower, although at acceptable levels. The relative half differences (RHD) of the samples

are presented in sequential order in Figure 11-2; it can be seen that the drill hole series is well

correlated with the variability and bias of repeat assays. Because of the consistent results from the

reference standards included in the samples submitted to Skyline, it can be assumed that the

variability in the drilling programs originate with the analytical precision at PVO, and not at Skyline

Labs.

Note: Samples are shown in sequential order of analyses, but are grouped by drill hole identification .

FIGURE 11-2: RELATIVE HALF DIFFERENCES IN REPLICATE PULP ANALYSES

(COMPARES ORIGINAL PVO COPPER ASSAYS WITH SKYLINE LABORATORIES REPEATS)

Table 11.2 shows the statistical summaries of the 2006 quality assurance program on replicate pulp

assays, broken down by drilling campaign. Although close similarities exist between the WW-, RC-,

and E-Series holes, there are only limited samples from the latter two series, and these tend to be

low-grade. Because the WW- and 97-Series holes were drilled around the same time and at a much

different time than the remaining holes, these holes should be categorized as having similar

laboratory quality practices. The AD-Series holes seem to have been assayed under different

protocols, and are grouped with the E-Series because of their similar drilling dates. Additional

information presented below further suggests this grouping for the purpose of estimating analytical

uncertainty. Based on the replicate pulp program, the AD- and E-Series holes have a relative bias of

-0.50

-0.40

-0.30

-0.20

-0.10

0.00

0.10

0.20

0 20 40 60 80 100 120

Item Number

Rela

tive H

alf

Dif

fere

nce

<0.1% Cu samples >0.1% Cu samples Standards

WW- ,RC- and E-

prefix Holes

AD-prefix Holes 97-prefix

Holes



+2.5% (original assays higher than Skyline) and precision of 6%, compared to the remaining holes

that have a bias and precision of approximately -1.5% and 9%, respectively (Table 11.2).

TABLE 11.2: ANALYTICAL RESULTS FOR REPLICATE PULP ASSAYS


Drill Hole

Program

Copper Ave. (%) Linear Fit Average Relative

Data Subset No. Skyline PVO Slope RHD ARHD Precision

WW-, RC-

& E-Series

All Data 29 0.254 0.247 0.95 0.000 0.049 0.138

> 0.1% Cu

Only 23 0.313 0.303 -0.017 0.035 0.103

AD-Series All Data 50 0.277 0.291 1.05 0.016 0.034 0.135

> 0.1% Cu Only

45 0.302 0.318 0.025 0.025 0.058

97-Series All Data 22 0.300 0.290 0.91 -0.016 0.029 0.080

All Samples All Data 101 0.275 0.278 1.00 0.004 0.037 0.123

> 0.1% Cu Only

90 0.304 0.307 0.005 0.029 0.074

Note: RHD (relative half difference) defined as (PVO-Skyline)/(PVO+Skyline); ARDH (absolute relative half difference);

Rel Err (relative error), calculated as the square root of the average squared relative half difference at the 95% confidence

level as estimated through the Student's T-distribution.

Fifteen field duplicates of split core from drill holes lying in sequence between E-21 and E-60 are

summarized in Table 11.3 and Figure 11-3. The relative bias between the two core halves is nearly

identical to that seen in lab assays for the AD-Series holes, with PVO core assays approximately 3%

higher grade than the replicate values. The relative precision of the two core halves at copper grades

above 0.1% Cu is slightly more than double the analytical precision of AD-Series pulp replicates

(Table 11.3). The AD-Series replicate pulp assays plot on the least square linear fit from the E-

Series duplicate core assays; this further suggests the similarity between the results.

TABLE 11.3: ANALYTICAL RESULTS FOR DUPLICATE CORE PREPARATION AND ASSAYS


Sample Set No.

Skyline

Cu%

PVO

Cu% RHD ARHD

Relative

Precision

All Samples 15 0.304 0.322 -0.006 0.114 0.453

Samples > 0.1% Cu 12 0.368 0.389 0.032 0.058 0.167



FIGURE 11-3: COMPARISON OF 15 FIELD DUPLICATE SAMPLES


Based on the E- and AD-Series results, the total relative sampling standard deviation for the split

core samples above 0.1% Cu is estimated to be approximately 8%: 86% of the sampling variance is

due to core splitting and sample preparation errors, and 14% is due to analytical variance within the

PVO lab. Instrumentation errors associated with the QA/QC analytical process is responsible for

about 0.5% of the total variance. The relative bias of about 2.5% between PVO and Skyline

laboratories is the result of an absolute bias of -2.7% between the Skyline Lab and the international

standard; these results are summarized in Table 11.4.

The sampling and preparation errors of the reverse circulation samples could not be fully determined

due to a lack of field duplicates, which occurred during the original program or the current program.

Field sampling of RC cuttings are generally associated with lower variances than sampling of drill

core, which can offset the higher laboratory variances measured for the 1996-1997 programs (Table

11.4). The analytical bias seen in these samples, corrected for the Skyline bias, are estimated to be

4% lower than the international standards.

y = 1.00x + 0.02

R2 = 0.94

0.00

0.20

0.40

0.60

0.80

0.00 0.20 0.40 0.60 0.80

Skyline Assay (wt. % Cu)

PV

O A

ssay (

wt.

% C

u)

Core Duplicates

Pulp Replicates



TABLE 11.4: TOTAL AND STEPWISE SAMPLING ESTIMATES AND

ANALYTICAL VARIANCES

Drill Hole Samples Total Relative Errors Stepwise Relative Error

No. Bias Std. Dev. Variance Bias Variance Std. Dev.

Core Sampling Variance

(E-Series core duplicates) 12 0.032 0.0760 0.00577 0.006 0.00495 0.070

PVO Analytical Variance (AD-Series pulp replicates) 45 0.025 0.0287 0.00082

-0.001 0.00079 0.028

Skyline Analytical Variance (Reference Material) 7

-0.027 0.0058 0.00003

-0.027 0.00003 0.006

Reverse Circulation Variance (WW- and 97- series)

Unknown

PVO Analytical Variance (WW/97-Series pulp replicates) 43

-0.017 0.0454 0.00206

-0.044 0.00203 0.045

Skyline Analytical Variance

(Reference Material) 7

-

0.027 0.0058 0.00003

-

0.027 0.00003 0.006

The current Pinto Valley QA/QC procedures are based on leading practices as defined by BHP

Billiton and used throughout BHP's group of assets. These have been developed in conjunction with

other BHP Billiton base metal mines. The process, as shown in Figure 11-4, ensures that suitable

checks are in place for each step of the sampling and data gathering activities.



FIGURE 11-4: CONDENSED SAMPLE HANDLING AND CHAIN OF CUSTODY STREAM

The following QA/QC criteria were used to validate the results and samples:

i) TCu > AsCu, except when;

a. TCu < 0.1 and ASCu < 0.1 b. TCu/SCu > 1.05

If not (AsCu > TCu), reject and report loss of precision to the laboratory and BHP

geologists, and send the following for reanalysis: 10 samples before and 10 samples after

the rejected sample. Include results in the monthly QA/QC report.

ii) Blanks (Cu):

a. < 6 times TCu, threshold limit = OK b. < 6 times Mo, threshold limit = OK c. If not, reject and report lost of accuracy to the laboratory and BHP geologists, and send

the following for reanalysis: 10 samples before and 10 samples after the rejected sample. Include results in monthly a QA/QC report.



iii) Standards (Cu):

a. < 2σ = OK b. If > 2σ, reject and report lost of accuracy to the laboratory and BHP geologists, and send

the following for reanalysis: 10 samples before and 10 samples after the rejected sample. Include results in monthly QA/QC report.

c. >3σ Reject and report lost of control of accuracy to the laboratory and BHP geologists, send to reanalysis 10 samples before and 10 samples after the sample rejected. Include in monthly QA/QC report.

iv) Field Duplicates, Crushing, and Pulp Duplicate (for Cu):

a. Protocols and procedures are in place to define sampling and laboratory errors within a large group of samples and batches however; this is not used to reject a batch.

Assays are imported to the BHP Server for approval. This is done for each batch according to the

criteria above. The geologist that logged the drill hole uses the following procedures to approve the

QA/QC for each batch:

1. The authorized geologist or data manager enters the BHP Data Portal and selects the area,

project, and Batch List.

2. Review QA/QC results, particularly “Company Standards” (that includes blanks) and

“Lab Standards” to approve a batch according to points 2.ii and 2.iii, above.

3. Review the Field Duplicates, Coarse Duplicates, Pulp Duplicates, and Lab Assay Repeats

as well. This information is then compiled to generate a QA/QC report detailing any

errors associated with the splitting and crushing procedures for that particular batch.


CAPSTONE MINING CORP. NI 43-101 TECHNICAL REPORT PINTO VALLEY PROPERTY

PAGE 12-1

12 DATA VERIFICATION

Garth Kirkham, P. Geo., visited the property on May 14, 2013. The site visit involved an inspection

of the core logging facilities, offices, outcrops, historic drill collars, core storage facilities, core

receiving area, core sawing stations, and a tour of the major centres and surrounding towns that are

affected by the mining operation.

The tour of the offices, core logging and storage facilities showed a clean, well-organized,

professional environment. On-site staff led the author through its chain of custody and methods used

at each stage of the logging and sampling process.

The author randomly selected four complete drill holes from the database and laid the core out at the

core storage area. Site staff supplied the logs and assay sheets so the author could verify the core and

logged intervals. The data correlated with the physical core and no issues were identified. In

addition, the author toured the complete core storage facility, pulling and reviewing core throughout

the tour. No issues were identified and recoveries appeared to be very good to excellent.

The author is confident that the data and results are valid based on the site visit and inspection of all

aspects of the project; this confidence extends to the methods and procedures used. It is the opinion

of the independent author that all work, procedures, and results have adhered to best practices and

industry standards required by NI 43-101. No duplicate or verification samples were taken to verify

assay results, but the author believes that the work is being conducted by a well-respected, large,

multi-national company that employs competent professionals that adhere to industry best practices

and standards.

The author also visited the Skyline Assayers & Laboratories (Skyline Labs) on May 15, 2013. The

laboratory tour was performed by Jim Martin, Senior Chemist and Arizona Registered Assayer (No.

11122), who provided a complete review of the laboratory facilities, laboratory preparation

procedures, instrumentation, assay methods, quality assurance and control protocols, and reporting

procedures. The laboratory appeared to be operated in a very professional manner as is expected

from a widely-used North American laboratory facility. Skyline Labs, because of its long-standing

service to many large copper mines, appear to specialize in and have extensive experience with the

assay processes and procedures for copper. Skyline Labs have been ISO 17025 certified since 2008.



13 MINERAL PROCESSING AND

METALLURGICAL TESTING

13.1 PREFACE

The Pinto Valley Mine has previously been in production and preliminary metallurgical and

geometallurgical work has been completed, as described below. However, a more detailed and

advanced program is currently underway that will augment this previous work and form the basis of

a Pre-feasibility Study planned for late 2013. The work described below is included only as it relates

to thoroughness. Note: the only information derived from this section is a broad characterization of

recoveries for copper and molybdenum of 88% and 50%, respectively.

The sections below were supplied by BHP and the author feels that this information is useful for the

sake of thoroughness, and the author also feels that it is reliable information because the mine has an

excellent understanding of the metallurgical and physical properties of the ore.

13.2 PINTO VALLEY PROCESS DESCRIPTION

Run-of-mine ore is delivered by haul truck to a Fuller-Traylor 60 x 89 inch gyratory primary

crusher. Primary crushed ore is then transported by an apron feeder and conveyor to the coarse

ore stockpile, which has a nominal live capacity of 30,000 mT.

The primary crushed ore is reclaimed from the coarse ore stockpile to the fine crushing plant.

The fine crushing plant consists of three secondary screens, three 7-ft standard Nordberg

crushers, six tertiary screens, six 7-ft Nordberg short head crushers and a tertiary feed bin. The

primary crushed ore is first screened to remove fines before the open circuit secondary crushing.

The undersize from the secondary screens is conveyed directly to the fine ore storage bin. The

secondary crushed product is screened and tertiary crushed in a closed circuit. The tertiary screen

undersize is conveyed with the secondary screen undersize to the fine ore storage bin. The fine

ore storage bin has a nominal live capacity of 39,000 mT.

Ore is reclaimed from the fine ore storage bin to the primary grinding circuit which consists of six

18 x 21 ft Allis Chalmers overflow ball mills, each driven by a 4,000 hp motor and operated in a

closed circuit with three 33-inch Kreb cyclones. The primary grinding circuit targets an 80%

passing size (P80) of approximately 270 µm (28% + 65 Mesh). The primary grinding cyclone

overflow is fed to the copper-molybdenum rougher circuit. Flotation reagents including lime,

xanthate dithiophosphate (DTP), and fuel oil are added to the grinding circuit in preparation for

flotation.

In the copper-moly flotation circuit, additional lime, xanthate, DTP, and frothers are added to the

pulp slurry, as required. The rougher flotation circuit consists of sixty-five 1,000-ft3 Wemco cells

configured in three banks, with two ball mills feeding each bank. The rougher concentrate is



reground in a closed circuit with two ball mills to a P80 of approximately 50 µm before being fed

to four 8 x 40 ft column cells. The column cell concentrate, the final Cu-Mo concentrate, contains

27%–29% Cu and 0.35%–0.7% Mo. A bank of fifteen 300-ft3

Wemco cleaner scavenger cells

processes the column cell tails.

The thickened Cu-Mo slurry is sent to the Moly plant. The Moly plant consists of four banks of

Agitair rougher cells of six 50-ft3

cells each and a column cleaner section. NaSH is added to the

slurry to provide depression of copper and iron sulphides and fuel oil is added as a moly

promoter. The moly rougher tailing is the final copper concentrate. The final molybdenum

product is thickened in a 26-ft moly thickener, filtered on a disk filter, dried, and bagged for

shipment.

The final copper concentrate is thickened to 60% solids and flows by gravity from the copper

thickeners to one of the two copper slurry storage tanks. The slurry is pumped from the storage

tanks to the Filter Plant, where it is dewatered before it is dispatched by truck.

13.3 RECENT METALLURGICAL TESTWORK

Table 13.1 summarizes the geometallurgical test work that has been conducted on Pinto Valley

ore since 2007. Some of this test work is still in progress and will be reported by September

2013. A selection of results from this test work is presented in this report.



TABLE 13.1: SUMMARY OF TESTWORK

2007 GeoMet

2013 GeoMet

Validation Total

Ore Characterization

ICP-SAFus (including Re, S, Au, Ag)

- 48 - 48

Cu, Mo, Fe, S, Insol 49 * - 11 60

AsCu 49 * - - 49

CNSolCu - 48 - 12

Seq Leach - 10 2 12

QEMSCAN 11 48 - 60

MLA - - 1 1

Density by Gas Pycnometer - 48 - 48

Comminution

SMC Tests - 4 2 6

Full Bond Tests 7 10 11 28

Mod Bond Tests 14 48 - 62

Crushing Plant Survey for JKSimMet Modelling

- 1 - 1

Flotation

Rougher Kinetics Test 2 21 11 34

Full MFT Tests 10 6 - 7

Variability MFT Tests 49 48 - 97

Flotation Survey for Fleet Calibration

1 - - 1

Note: *Calculated from flotation products .

13.4 MINERALOGY OF THE ORE

The Pinto Valley ore can be divided into five ore types. The major or type is a Ruin

Granite/Quartz Monzonite, which comprises greater than 90% of the ore. Table 13.2 summarizes

the five ore types.



TABLE 13.2: SUMMARY OF PINTO VALLEY ORE TYPES

Ore ID

Ore type T Cu% Range

Average T Cu%

Observed Proportion

Alteration

1 Ruin Granite/Quartz

Monzonite

0.2-0.4% 0.37% 90-97% Potassic/Sericitic

2 Granite Porphyry 0.2-0.25% 0.22% 1-6% Quartz Sericite

3 Diabase 0.2-1.0% 0.45% - Potassic

4 Aplite 0.2-0.25% 0.20% - Potassic

5 Quartz/Granodiorite 0.2-0.25% 0.22% 1-7% No alteration

The mineralogy of 35 samples classified as Ruin Granite/Quartz Monzonite was measured using

QEMSCAN. The modal mineralogy results are shown in Table 13.3. The major minerals in the

Ruin Granite/Quartz Monzonite ore are quartz, feldspars (both K and Na-rich species), and mica

(predominantly muscovite). Chalcopyrite is the predominant copper mineral.



TABLE 13.3: MODAL MINERALOGY OF RUIN GRANITE/QUARTZ MONZONITE

Min. 10th

Percen

tile

20th Percen

tile

Median Avg. 80th

Percen

tile

90th Percen

tile

Max.

Chalcopyrite 0.243 0.410 0.550 0.844 1.095 1.743 1.850 2.453

Other Copper-Sulphides 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.001

Pyrite 0.011 0.048 0.076 0.270 0.608 0.678 2.070 3.763

Other Sulphides 0.002 0.004 0.006 0.011 0.021 0.021 0.037 0.170

Quartz 22.155 35.232 37.250 41.459 41.249 45.816 47.317 52.880

K-Feldspar 9.405 27.410 30.282 33.766 33.560 38.592 40.981 44.264

Plagioclase 0.216 1.097 2.053 4.147 4.710 7.348 8.592 12.811

Chlorites 0.018 0.054 0.167 0.491 0.870 0.877 2.200 6.051

Biotite/Phlogopite 0.126 0.618 0.769 1.548 2.544 2.733 3.472 28.248

Muscovite 3.693 5.146 5.316 8.420 9.236 11.608 13.882 24.638

Illite 0.948 1.807 1.965 2.873 3.170 4.170 4.962 5.876

Clays 0.068 0.081 0.097 0.148 0.148 0.172 0.193 0.496

Other Silicates 0.032 0.052 0.071 0.111 0.162 0.184 0.224 1.469

Fe/Ti-Oxides 0.223 0.399 0.441 0.593 0.840 0.921 1.305 4.724

Calcite 0.031 0.040 0.060 0.628 1.005 1.699 2.333 4.637

Other Carbonates 0.024 0.034 0.046 0.123 0.240 0.460 0.619 0.987

Apatite 0.060 0.108 0.147 0.271 0.287 0.367 0.459 0.948

Fluorite 0.000 0.000 0.000 0.001 0.152 0.033 0.059 2.615

Other 0.004 0.022 0.034 0.056 0.105 0.095 0.137 0.970

13.5 CRUSHABILITY

A small crushability dataset was created by conducting SMC tests on selected diamond drill core

samples. The results of these tests are summarized in Table 13.4. The crushability of the Pinto

Valley ore ranges from soft (DWi = 3.85 kWh/m3) to medium (DWi = 6.02 kWh/m

3). DDH-101

was a sample of Diabase, which was found to have a hard crushability with a DWi of 9.40

kWh/m3.



TABLE 13.4: SMC TEST RESULTS ON PINTO VALLEY ORE

Sample DWi

kWh/m3

Mia

kWh/mt

Mic

kWh/mt A b Axb Category

t10 @ 1kWh/t SG ta

DDH 12-118 5.51 17.6 6.5 72.2 0.64 46.2 medium 34.1 2.55 0.47

DDH 12-79 6.02 17.9 6.7 69.5 0.64 44.5 medium 32.9 2.69 0.43

DDH 12-101 9.40 24.1 9.9 74.3 0.41 30.5 hard 25.0 2.85 0.28

DDH 12-145 3.50 12.2 4.1 66.0 1.11 73.3 soft 44.2 2.57 0.74

PV1 Comp 1 4.25 14.0 4.9 68.5 0.9 61.7 soft 40.6 2.61 0.61

PV1 Comp 4 3.85 13.2 4.5 67.9 0.98 66.5 soft 42.4 2.56 0.67

13.6 GRINDABILITY

The grindability of the major ore type, Ruin Granite/Quartz Monzonite, was measured by testing

35 samples selected from diamond drill core intervals. The modified Bond work index test was

used with a closing screen size of 212 µm. The results are shown in Figure 13-1. The grindability

of the Ruin Granite/Quartz Monzonite has low variability, ranging from 13.4 to 15.5 kWh/mt. A

single observation of 17.1 kWh/mt was recorded. This interval, as noted in the geological log,

contained some Diabase.

A small selection of modified Bond work index tests was conducted on the minor lithologies.

Two Granite Porphyry samples were tested and had results of 15.1 and 16.1 kWh/mt; this

indicates that this lithology is harder to grind than the Ruin Granite. Three samples of

Granodiorite were tested with results of 13.1, 12.5, and 13.9 kWh/mt; this indicates that the

Granodiorite may be softer than the Ruin Granite. Two samples of Diabase have been tested with

results of 17.0 and 17.3 kWh/mt; this indicates that the Diabase ore is significantly harder to grind

than the other lithologies. Three samples of Aplite have been tested with results of 13.5, 13.7 and

14.3 kWh/mt; this indicates that the Aplite is not significantly different from the Ruin Granite to

grind.



FIGURE 13-1: RUIN GRANITE / QUARTZ MONZONITE MODIFIED BOND WORK INDEX (KWH/MT)

While there is some variability in the grindability of Pinto Valley ore, the test results indicate that

the variability is primarily controlled by the lithology, and that the variability is limited to the

minor lithology types. As these lithology types have relatively low proportions compared to the

Ruin Granite, it is likely that, when they are encountered in the pit, their impact on performance

will be able to be controlled with an appropriate blending strategy.

13.7 PINTO VALLEY RECOVERY

The long-term average of recovery for Pinto Valley is 86.0% from 1975 to 2008. During the

2006 start-up, the average Copper Recovery was slightly higher at 86.8%. The 12-month rolling

average Copper Recovery has been trending upwards throughout the life of the operation from

around 83% in 1990 up to 87% in mid-1996, as shown in Figure 13-2. There was a recovery

peak in 1992, and again in 1994, and then it hit a plateau at the highest value between April 1996

and January 1998. During the 2006-2008 restart, there was also a period of time from July 2008

until January 2009 where the plant sustained an average recovery of 89.7%.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

2

4

6

8

10

12

14

16

18

<13 13.5 14 14.5 15 15.5 16 16.5 17 17.5 More

Freq

uenc

y

Bin - Mod Bond Work Index (kWh/mt)

Frequency

Cumulative %



FIGURE 13-2: PINTO VALLEY COPPER RECOVERY (1990 TO 1998)

The current block model recovery is 87.7%. This recovery was determined by using a fixed-tail

recovery equation with a tail value of 0.052% Cu and a recovery cap of 90.5%. The tail value of

0.052% Cu was sourced from historical plant data from between January 1975 and February

1998. Historical data also indicates that it is rare for Pinto Valley recovery to exceed 90.5% on a

monthly basis.

This recovery target, while higher than the long-term average for the operation, is consistent with

more recent results and the overall trend of increasing recovery.

13.8 FLOTATION

Within the current geometallurgical test program, a flotation variability study is being conducted

using a combination of rougher/cleaner kinetics tests and the Mineral Flotation Test (MFT). The

results of these tests will be used to develop a FLEET model which is able to simulate circuit

recoveries and concentrate grades. This work is currently in progress and is planned to be

completed by end of 2013 and will be the subject of an advanced study.



14 MINERAL RESOURCE ESTIMATE

14.1 INTRODUCTION

The following sections detail the methods, processes, and strategies used to calculate the mineral

resource estimate for the Pinto Valley deposit.

14.2 DATA EVALUATION

A total of 1,031 drill holes were supplied for the Pinto Valley Project; however, 62 of those holes,

as of the effective date of this report, were pending and unavailable.

The drill hole database was supplied by BHP in an electronic format. This data included drill hole

collars, down hole surveys, lithology data, and assay data with downhole from and downhole to

intervals in imperial units. The assay data included total Cu% and Mo%.

Figure 14-1 shows a plan view for the drill holes used in the mineral resource estimate.

FIGURE 14-1: PLAN VIEW SHOWING DRILL HOLES USED IN RESOURCE ESTIMATE

14.3 COMPUTERIZED GEOLOGIC AND DOMAIN MODELING

Solids were supplied for the principal domains along with the main mineralized zones; these

included the following: 1, 2, 3, 4, 5, 6, 8, 10, and 11.



The numeric coding for the zones are as follows:

1 West Ore Zone

2 Central Ore Zone

3 East Ore Zone

4 South of the South Fault

5 West of the Gold Gulch Fault

6 Diabase

8 East of the Jewel Hill Fault

10 Low Grade Quartz Monzonite

11 Castle Dome

The drill hole database was numerically coded by zone and solid: 1, 2, 3, 4, 5, 6, 8, 10, 11. The

solids were adjusted by moving the nodes of the triangulated domain solid to honour the drill hole

intercepts. Then the numeric codes that denote the zones within the drill hole database were

manually adjusted to ensure the accuracy of zonal intercepts. No assay values were edited or

altered.

Figure 14-2 shows a plan view of the West, Central, and East Ore Zone solids: 1, 2, and 3.

Extensive low grade zones are also defined in Figure 14-3; these are separated by the major

faults. Figure 14-4 shows a plan view of the solids with drill holes for Zone 4 (South of the South

Fault), Zone 5 (West of the Gold Gulch Fault), and Zone 8 (East of the Jewel Hill Fault) in blue,

light blue, and red, respectively. Zone 10 (Low Grade Quartz Monzonite) in pink underlies all of

the units. Note that in Figure 14-4, the West, Central and East Zones are combined and displayed

in red. Figure 14-5 shows a portion of the assay database with the percentages for copper and

molybdenum, the geology, mineralization, and column "XTRA1" which represents the adjusted

numeric coding for the mineralized solids (i.e., 1, 2, 3, 4, 5, 6, 8, 10, and 11).



Note: West Ore Zone (1) in blue on left; Central Ore Zone (2) in light green in middle; East Ore Zone (3) in yellow on right.

FIGURE 14-2: PLAN VIEW SHOWING MINERALIZED SOLIDS

FIGURE 14-3: PLAN VIEW SHOWING MAJOR FAULTS



Note: Zone 4 (South of the South Fault) in green, Zone 5 (West of the Gold Gulch Fault) in purple, Zone 8 (East of the Jew el Hill Fault) in blue, Zone 10 (Low Grade Quartz Monzonite) in (pink), and Combined Ore Zones 1, 2, and 3) in red.

.

FIGURE 14-4: PLAN VIEW DRILL HOLES WITH DOMAIN SOLIDS



FIGURE 14-5: DRILL HOLE DATABASE SHOWING GRADES AND LITHOLOGY CODES

Simple statistics for copper and molybdenum assays, weighted by assay interval, are shown in

Table 14.1.

The assay statistics in Table 14.1 indicate that the copper and molybdenum data are reasonably

distributed. The mean grade is 0.427%, 0.383%, and 0.436% for copper and 0.009%, 0.011%, and

0.014% for molybdenum in the West, Central and East Ore Zone solids, respectively. Copper and

molybdenum grades for the combined ore zones are 0.415% and 0.011%, respectively. The mean

for all zones is 0.249% Cu and 0.006% Mo.

Copper and molybdenum assays have a relatively low coefficient of variation (CV) ranging from

0.37 to 0.45 for copper and moderately high CV ranging from 0.64 to 2.42 for molybdenum. The

overall CV within all zones is 0.87 for copper, and 2.07 for molybdenum. This indicates a

relatively low scatter of the raw data values for copper, but higher scatter values for molybdenum.

Zone 5 (West of the Gold Gulch Fault), exhibits high CV’s which appears to be due to some very

high grade intersections combined within what has been interpreted as a low grade volume.

Delineating and segregating these high grades would help to address this anomalous issue.



The coefficient of variation is defined as CV = σ/m (standard deviation/mean), and represents a

measure of variability that is unit-independent. This is a variability index that can be used to

compare different and unrelated distributions.

TABLE 14.1: STATISTICS FOR TOTAL COPPER AND MOLYBDENUM PERCENTAGES

ZONE # Length MIN MAX Mean Median SD CV

1 TCU 10,155 69,128 0.00 5.404 0.427 0.404 0.19 0.44

MO 8,587 61,307 0.00 1.638 0.010 0.009 0.02 2.42

2 TCU 6,411 37,143 0.05 3.200 0.383 0.363 0.14 0.37

MO 6,399 37,083 0.00 0.064 0.011 0.011 0.01 0.64

3 TCU 3,442 19,939 0.00 2.528 0.436 0.412 0.20 0.45

MO 3,418 19,659 0.00 0.078 0.014 0.014 0.01 0.73

4 TCU 581 4,389 0.00 1.230 0.041 0.012 0.12 2.91

MO 456 3,233 0.00 0.014 0.002 0.001 0.00 1.15

5 TCU 3,793 32,138 0.00 6.540 0.098 0.037 0.24 2.44

MO 3,514 30,988 0.00 0.980 0.002 0.001 0.02 9.31

6 TCU 109 941 0.03 3.010 0.462 0.412 0.37 0.80

MO 109 941 0.00 0.016 0.003 0.001 0.00 1.13

8 TCU 568 3,473 0.00 1.168 0.046 0.020 0.09 2.05

MO 559 3,343 0.00 0.006 0.000 0.001 0.00 5.02

10 TCU 14,435 112,625 0.00 2.610 0.188 0.175 0.13 0.70

MO 14,303 111,551 0.00 1.200 0.006 0.004 0.02 2.86

11 TCU 29,316 193,317 0.00 8.160 0.276 0.200 0.27 0.99

MO 23,016 147,957 0.00 0.670 0.007 0.006 0.01 1.41

Total TCU 68,810 473,091 0.00 8.160 0.277 0.249 0.24 0.87

MO 60,361 416,060 0.00 1.638 0.007 0.006 0.02 2.07

All TCU 72,170 506,111 0.00 8.160 0.267 0.241 0.24 0.90

MO 63,718 448,935 0.00 1.638 0.007 0.006 0.01 2.10

Figures 14-6 and 14-7 shows representative contact plots between the various zones. In general

the values are either similar or transitional at the boundaries. At some boundaries the

molybdenum is more transitional than in other porphyry copper-molybdenum deposit zones.



FIGURE 14-6: CONTACT PLOTS FOR COPPER



FIGURE 14-7: CONTACT PLOTS FOR MOLYBDENUM

14.4 TOPOGRAPHY

The topography was obtained from a contour map, and digital solid surfaces were created. The

solids and contours were in good agreement with the drill hole collar data and are sufficiently

accurate to be used as the upper surface boundary surface of the deposit. Figure 14-8 shows the

contours in plan view and Figure 14-9 shows the gridded surface model.



FIGURE 14-8: PLAN VIEW OF TOPOGRAPHIC SOLIDS WITH DRILL HOLES

FIGURE 14-9: PLAN VIEW 3D GRIDDED TOPOGRAPHY BY CONTOUR RANGE



14.5 COMPOSITES

It was determined that a 45-foot composite length minimizes the smoothing of the grades, but

also reduces the influence of typically narrow, very high grade samples; this appears to be an

optimal interval length from the standpoint of regularization. The main justification to adopt the

45-foot composite length is because the mine has been using this length, and consistency with

past practices is desirable. In addition, it is reasonable that a 45-foot selective mining unit (SMU)

may be expected which is consistent with the bench height.

Table 14.2 shows the basic statistics for the 45-foot composites for copper and molybdenum. Box

plots for copper and molybdenum are shown in Figures 14-10 and 14-11, respectively.

The assay statistics shown in Table 14.2 indicate that the copper and molybdenum data are

reasonably distributed. The mean grade is 0.427%, 0.383%, and 0.436% for copper and 0.010%,

0.011%, and 0.014% for molybdenum in the West, Central and East Ore Zone solids,

respectively. The mean copper and molybdenum grades for the combined ore zones are 0.415%

and 0.011%, respectively. The mean for all zones is 0.268% Cu and 0.007% Mo.

The assay statistics in Table 14.1 indicate that the copper and molybdenum data are reasonably

distributed. The mean grade is 0.427%, 0.383%, and 0.436% for copper and 0.010%, 0.011%, and

0.014% for molybdenum in the West, Central and East Ore Zone solids, respectively. The mean

copper and molybdenum grades for the combined ore zones are 0.415% and 0.011%,

respectively. The mean for all zones is 0.267% Cu and 0.007% Mo.

Copper and molybdenum composites have a relatively low coefficient of variation (CV) ranging

from 0.30 to 0.38 for copper, and a moderately high CV ranging from 0.61 to 1.61 for

molybdenum. The overall CV within all zones is 0.81 for copper, and 1.54 for molybdenum.

The mean grades of the composites are markedly similar to those of the assay data. However, the

CVs, for all three zones combined, have improved from 0.43 to 0.37 for copper, and 1.65 to 1.16

for molybdenum. Overall CVs have improved from 0.87 to 0.81 for copper, and 2.07 to 1.61 for

molybdenum.

Figures 14-10 and 14-11 show the box plots for copper and molybdenum, respectively; there is

essentially very little difference between the ore Zones 1, 2, and 3, with average grades and

distributions of spreads being very similar. In addition, Zone 6 (Diabase) is also quite similar to

the West, Central and East Ore Zones; however, this is a relatively small and isolated zone.

In addition, there is a significant difference between the data inside and the data outside of the

three domains which indicates that the solids are efficient with respect to segregating the low-

grade material from the high-grade material, as shown in the contact profiles (Figures 14-6 and

14-7) which compare the average grade of the samples at varying distances from a domain

contact.



TABLE 14.2: COMPOSITE STATISTICS WEIGHTED BY LENGTH (BY ZONE)

ZONE # Length MIN MAX Mean Median SD CV

1 TCU 4,687 69,128 0.0 2.433 0.427 0.407 0.16 0.38

MO 4,153 61,307 0.0 0.558 0.010 0.008 0.02 1.61

2 TCU 2,531 37,143 0.1 1.563 0.383 0.369 0.12 0.30

MO 2,526 37,083 0.0 0.049 0.011 0.010 0.01 0.61

3 TCU 1,357 19,939 0.1 1.644 0.436 0.412 0.16 0.38

MO 1,336 19,659 0.0 0.073 0.014 0.013 0.01 0.71

4 TCU 305 4,389 0.0 0.857 0.041 0.008 0.12 2.80

MO 224 3,238 0.0 0.014 0.002 0.001 0.00 1.08

5 TCU 2,203 32,138 0.0 3.407 0.098 0.030 0.22 2.23

MO 2,121 30,978 0.0 0.333 0.002 0.000 0.01 5.21

6 TCU 65 941 0.0 2.226 0.462 0.423 0.32 0.70

MO 65 941 0.0 0.013 0.003 0.002 0.00 1.07

8 TCU 236 3,473 0.0 0.788 0.046 0.019 0.09 1.88

MO 227 3,343 0.0 0.006 0.000 0.000 0.00 4.85

10 TCU 7,692 112,625 0.0 1.859 0.188 0.181 0.12 0.66

MO 7,615 111,516 0.0 0.688 0.006 0.004 0.01 2.05

11 TCU 13,083 193,317 0.0 5.390 0.276 0.208 0.26 0.93

MO 9,995 147,481 0.0 0.339 0.007 0.004 0.01 1.28

Total TCU 32,159 473,091 0.0 5.390 0.277 0.251 0.23 0.81

MO 28,262 415,544 0.0 0.688 0.007 0.005 0.01 1.54

All TCU 34,077 501,111 0.0 5.390 0.268 0.240 0.23 0.84

MO 30,169 443,419 0.0 0.688 0.007 0.005 0.01 1.57



FIGURE 14-10: BOX PLOT FOR COPPER COMPOSITES BY ZONE

FIGURE 14-11: BOX PLOT FOR MOLYBDENUM COMPOSITES BY ZONE



14.6 OUTLIERS

Although there appear to be isolated, high grade outliers, there does not appear to be a separate

and distinct population that requires segregation or grade limiting. Figures 14-12 and 14-13 show

the cumulative frequency plots for Cu% and Mo% which illustrate one composite in each case

that would require special treatment. By virtue on compositing and then further smoothing during

the estimation process, the effects of the few high grade outliers are mitigated. However, it would

be prudent to perform further outlier studies as additional data is collected in addition to low of

metal analysis and comparisons of blast hole data against production to determine if further

actions are warranted.

FIGURE 14-12: CUMULATIVE FREQUENCY PLOT FOR COPPER (45-FT COMPOSITES)

FIGURE 14-13: CUMULATIVE FREQUENCY PLOT FOR MOLYBDENUM (45-FT COMPOSITES)



14.7 TONNAGE FACTOR

The average bulk dry density for ore grade mineralized rock, primarily Lost Gulch Quartz

Monzonite, is 12.75 cubic feet per ton (ft3/T). Although the in-situ bulk dry densities for all Pinto

Valley rock types ranges from 12.1 ft3/T for P inal Schist to 13.0 ft

3/t for White Tail

Conglomerate, 12.75 ft3/T is used for all reserve calculations. Although efforts to locate

supporting documentation for this density data were unsuccessful, personal communications with

a former employee indicate that detailed density studies had been done. Further, production

reconciliations tend to support the 12.75 ft3/T factor; it had been reported in production

comparisons that even though the block model under-predicted tonnage, the 12.75 ft3/T density

factor that was used still provided a reasonable estimate. They also stated that since the resources

remaining in the ground are geologically the same as the resources already mined from the

primary zone, it is reasonable to assume that this density will also provide globa lly reasonable

estimates of remaining resource tonnages.

14.8 BLOCK MODEL DEFINITION

The block model used to calculate the mineral resources was defined according to the limits

shown in Figure 14-14.

FIGURE 14-14: BLOCK MODEL BOUNDS



The block model is orthogonal and non-rotated, reflecting the orientation of the deposit. Figure

14-14 shows the dimensions and Figure 14-15 shows the position and orientation of the block

model used for this study. The chosen block size was 100 x 100 x 45 m to roughly reflect the

available drill hole spacing and to adequately descretize the deposit.

FIGURE 14-15: LOCATION OF GRID AND MODEL LIMITS

14.9 VARIOGRAPHY

The degree of spatial variability and continuity in a mineral deposit depend on both the distance

and direction between points of comparison. Typically, the variability between samples is

proportionate to the distance between samples. If the variability is related to the direction of

comparison, then the deposit is said to exhibit anisotropic tendencies which can be summarized

by an ellipse fitted to the ranges in the different directions. The semi-variogram is a common

function used to measure the spatial variability within a deposit.

The components of the variogram include the nugget, the sill, and the range. Often samples

compared over very short distances (including samples from the same location) show some

degree of variability. As a result, the curve of the variogram often begins at a point on the y-axis

above the origin; this point is called the nugget. The nugget is a measure of not only the natural

variability of the data over very short distances, but also a measure of the variability which can be

introduced due to errors during sample collection, preparation, and assaying.

Typically, the amount of variability between samples increases as the distance between the

samples increase. Eventually, the degree of variability between samples reaches a constant or

maximum value; this is called the sill, and the distance between samples at which this occurs is

called the range.



The spatial evaluation of the data was conducted using a correlogram instead of the traditional

variogram. The correlogram is normalized to the variance of the data and is less sensitive to

outlier values; this generally gives cleaner results.

Correlograms were generated for the distribution of gold in the various areas using the

commercial software package Sage 2001© developed by Isaacs & Co. Correlogram model data is

shown in Table 14.3.

TABLE 14.3: CORRELOGRAM MODEL DATA BY ZONE

ZONE C0 C1 C2 Range

Y Range

Y Range

Y Rotation

Z Rotation

Y Rotation

X

1 0.277 0.375 0.348 76.9 216.8 51.8 16 -14 -13

1127 1340.1 167.7 94 -3 -14

2 0.314 0.353 0.332 75.3 420.7 69.7 -14 0 -10

337.5 1063.4 188.3 -3 -18 -7

3 0.284 0.403 0.312 83.7 151.5 51.7 -9 -44 7

517.2 1633.4 238.8 -11 -12 -9

5 0.094 0.556 0.35 311.8 117.4 626.3 38 80 -77

129.4 2196.3 1422.1 91 -48 3

10 0.104 0.418 0.478 117.1 321.5 506.4 -20 25 23

1779.2 613.1 2068.9 21 -40 -59

11 0.149 0.41 0.442 231.5 124 108.3 11 35 -36

2148.2 2675.4 522.9 -69 -17 -23

The block model grades for gold were estimated using ordinary kriging. Estimates were validated

using the Hermitian Polynomial Change of Support model (Journel and Huijbregts, 1978), also

known as the Discrete Gaussian Correction. The ordinary kriging models were generated with a

relatively limited number of composites to match the change of support or Herco (Hermitian

correction) grade distribution. This approach reduces the amount of smoothing (also known as

averaging) in the model and, while there may be some uncertainty on a localized scale, this

approach produces reliable estimates of the potentially recoverable grade and tonnage for the

overall deposit. The interpolation parameters are summarized by domain in Table14.4.



TABLE 14.4: INTERPOLATION PARAMETERS

ZONE RANGE RANGE RANGE ROTATION ROTATION ROTATION MIN MAX

MAX PER

DDH

X (ft) Y (ft) Z (ft) Z Y X

#

COMPS

#

COMPS

#

COMPS

1 500 500 350 130 0 0 4 15 3

2 500 500 250 90 0 0 4 15 3

3 1000 1000 250 345 -20 0 4 15 3

5 1000 1000 300 0 0 0 4 15 3

10 1000 1000 300 0 0 0 4 15 3

11 1000 1000 300 0 0 0 4 15 3

During grade estimation, search orientations were designed to follow the general trend of the

mineralization in each of the zone domains.

The estimation plan includes the following:

Store the mineralized zone code and percentage of mineralization.

Estimate the grades for each of the metals using ordinary kriging in a single pass.

Include a minimum of four composites and a maximum of fifteen, with a maximum

of three from any one drill hole.

The resulting block model is shown in plan and section, long section and plan view in Figures 14-

16 to 14-18, respectively.



FIGURE 14-16: PLAN VIEW OF BLOCK MODEL SHOWING COPPER GRADE MODEL AT 3230 ELEVATION > 0.1%

FIGURE 14-17: PLAN VIEW OF BLOCK MODEL SHOWING MOLYBDENUM GRADE MODEL AT 3230 ELEVATION >

0.003%



FIGURE 14-18: SECTION OF BLOCK MODEL WITH COPPER GRADES > 0.1%

SHOWN WITH GEOLOGY, TOPOGRAPHY, AND DRILL HOLES

14.10 MINERAL RESOURCE CLASSIFICATION

The spatial variation pattern incorporated in the variogram and the drill hole spacing can be used

to help predict the reliability of estimation for copper metal. (In this case there are at least two

potentially economic metals, but copper is likely the greatest contributor to net smelter return.

Therefore, copper variation will dominate estimation uncertainty, and ultimately determine drill

spacing.) The measure of estimation reliability or uncertainty is expressed by the width of a

confidence interval or the confidence limits. Then, by knowing how reliably metal content must

be estimated to adequately plan, it is possible to calculate the drill hole spacing necessary to

achieve the target level of reliability. For instance, Indicated resources may be adequate for

planning in most Pre-feasibility work. For feasibility studies, it is not uncommon to require

Measured resources to define the production within the payback period, and then Indicated

resources for scheduling beyond payback time.

In the case of the current deposit there is some information available from several domains and

the spacing between holes varies with much of the data at a spacing of about 200 ft. Results from

this study should be validated against current and future drilling.

Confidence Interval Estimation

Confidence intervals are intended to estimate the reliability of estimation for different volumes

and levels of drill hole spacing. A narrower interval implies a more reliable estimate and attempts

should be made to have enough closely spaced holes in the drilling to accurately determine the

spatial correlation structure of copper samples less than 200 ft apart.



The study is based on the ideas outlined in the next several paragraphs. Using hypothetical,

regular drill grids and the variograms from the composited drill hole sample data, confidence

intervals or limits can be estimated for different levels of drill hole spacing and production

periods or equivalent volumes. The confidence limits for 90% relative confidence intervals

should be interpreted as follows:

If the limit is given as 8%, then there is a 90 percent chance the actual value (tons and grade) of

production is within ± 8% of the estimated value for a volume equal to that required to produce

enough ore tonnage in the specified period (e.g., quarter or year). This means it is unlikely the

true value will be more than 8% different relative to the estimated value (either high or low) over

the given production period.

The method of estimating confidence intervals is an approximate method that has been shown to

perform well when the volume being predicted from samples is sufficiently large (Davis, B. M.,

Some Methods of Producing Interval Estimates for Global and Local Resources, SME Preprint

97-5, 4p.) In this case, the smallest volume where the method would most likely be appropriate is

the production from one year. Using these guidelines, an idealized block configured to

approximate the volume produced in one month is estimated by ordinary kriging using the

idealized grids of samples.

Relative variograms are used in the estimation of the block. (Relative variograms are used rather

than ordinary variograms because the standard deviations from the kriging variances are

expressed directly in terms of a relative percentage.)

The kriging variances from the ideal blocks and grids are divided by twelve (assuming

approximate independence in the production from month to month) to get a variance for yearly

ore output. The square root of this kriging variance is then used to construct confidence limits

under the assumption of normally distributed errors of estimation. For example, if the kriging

variance for a block is 2

m then the kriging variance for a year is 2

y = 2

m/12. The 90 percent

confidence limits are then C.L. = ±1.645 x y.

The confidence limits for a given production rate are a function of the spatial variation of the data

and the sample or drill hole spacing.

Drill Hole Grid Spacing

For this exercise, the drill hole grids tested were 900 x 900 ft, 600 x 600 ft, 300 x 300 ft, and 150

x 150 ft.



Further assumptions made for the confidence interval calculations are as follows:

The variograms are appropriate representations of the spatial variability for presence of

mineralization and metal grade.

The tonnage factor for the domains is 12.75 ft3/ton.

Most of the uncertainty in metal production within zones is due to the fluctuation of

metal grades and not to variation in the presence or absence of the unit.

The possible production rate is 52,000 stpd.

Confidence limits for copper metal production are shown in Figure 14-19. The curves show a

graphical representation of how the uncertainty decreases with decreased drill hole spacing.

FIGURE 14-19: RELATIVE CONFIDENCE LIMITS FOR THE 52,000 STPD PRODUCTION RATE

Indicator Variograms

The uncertainty calculation results above are consistent with the indicator variogram results that

accompany this report. The indicator variogram ranges show that most of the continuity in grades

above 0.2% is lost when reaching 800 ft or somewhat beyond. This does not mean that the

ultimate ranges have been achieved: it means that 80% to 90% of the total variation is reached at

separation distances in this range.

1000 800 600 400 200 0

Spacing ( m )

30

20

10

0

90%

Relative Confidence Lim

it (%

)

PV Copper Est im at ion Uncer t aint y by Dr ill Spacing

Year ly Uncer t aint y



Classification of Resources

Indicated resources are estimated using the following criteria: the uncertainty of yearly

production must be no greater than ± 15% with 90% confidence, and Measured resources must be

estimated so the uncertainty of quarterly production is no greater than ± 15% with 90%

confidence.

The results presented above indicate that usual reliability targets can be reached at a spacing of

somewhere around 500 ft. This drill spacing produces sufficiently reliable estimates to classifying

resources as Indicated.

It should also be noted that the confidence limits only consider the variability of grade within the

veins. There may be other aspects of deposit geology and geometry, such as geological contacts

or the presence of faults or offsetting structures that may impact the drill spacing. These factors

should not be discounted or ignored when making a final choice concerning the drill grid.

The following details the grid spacing for each resource category to classify resources assuming

the 52,000 stpd production rate and based on the other assumptions that were discussed above:

Measured: Note that based on the CIM definitions, continuity must be demonstrated in the

designation of Measured (and Indicated) resources; therefore, no Measured resources can be

declared based on one hole. The uncertainty based on current information suggests a spacing of

150 ft may be required to classify Measured resources.

Indicated: Resources in this category could be delineated from multiple drill holes located on a

nominal 500 ft square grid pattern provided a yearly uncertainty of around 15% does not

significantly impact the potential viability of the project.

Inferred: Resources in this category include any material not falling in the categories above and

within a maximum 1000 ft of one hole.

The spacing distances are intended to define contiguous volumes and they should allow for some

irregularities due to actual drill hole placement. The final classification volume results typically

must be smoothed manually to come to a coherent classification scheme.

Conclusions and Recommendations

The study described above indicates a drill spacing of around 500 ft may be sufficient in

delineating Indicated resources at 52,000 short tons per day. The calculation of uncertainty should

be monitored as new drilling progresses.

Estimation of confidence intervals for smaller volumes such as those for monthly or weekly

production requires the geostatistical procedure of conditional simulation (Davis, B. M., Some

Methods of Producing Interval Estimates for Globa l and Local Resources, SME Preprint 97-5,

4p.). The use of conditional simulation can help to assess uncertainty and risk in short term mine



planning. Conditional simulation applications would typically not be appropriate until sometime

in the future when more drilling is available.

To further ensure confidence and continuity, the blocks were displayed at the chosen thresholds

of 150 ft and 500 ft to the nearest composite, and a boundary was digitized to create a smooth

surface and to reduce the “spotted dog” effect, as shown in Figure 14-20. A solid was then

created and coded back into the model by majority code, and using > 50% partials to be classified

as Measured or Indicated. The remainder that is greater than 500 ft, but not more than 100 ft from

nearest composite, was classified as Inferred.

FIGURE 14-20: DIGITIZED BOUNDARY BASED ON DISTANCE TO NEAREST COMPOSITE

(SHOWN AS DASHED GREEN POLYLINE)

14.11 MINERAL RESOURCES

The resources show reasonable prospects of economic extraction.

CIM Definition Standards for Mineral Resources and Mineral Reserves (November 2010) define

a mineral resource as:

“[A] concentration or occurrence of diamonds, natural solid inorganic material, or natural solid

fossilized minerals in or on the Earth’s crust in such form and quantity and of such a grade or

quality that it has reasonable prospects for economic extraction. The location, quantity, grade,

geological characteristics and continuity of a mineral resource are known, estimated or

interpreted from specific geological evidence and knowledge.”



The “reasonable prospects for economic extraction” requirement generally implies that quantity

and grade estimates meet certain economic thresholds and that mineral resources are reported at

an appropriate cut-off grade taking into account extraction scenarios and processing recovery.

The “reasonable prospects for economic extraction” were tested using floating cone pit shells as

shown in Figure 14-21 based on reasonable economic assumptions, shown in Figure 14-22. The

economic assumptions include the following: $3.30/pound Cu, $10.00 per pound Mo, 88% Cu

recovery, 50% Mo recovery, $1,50 per ton mining costs, $1.50 per ton G&A, $5.00 per ton

milling costs, and a pit slope of 45 degrees. The pit optimization results are used solely for the

purpose of testing the “reasonable prospects for economic extraction,” and do not represent an

attempt to estimate mineral reserves. The optimization results are used to assist with the

preparation of a Mineral Resource Statement and to select and appropriate reporting assumptions.

FIGURE 14-21: OPTIMIZED PIT WITH BLOCK MODEL



FIGURE 14-22: PIT OPTIMIZATION FOR BLOCK MODEL

The mineral resources are listed in Table 14.5 for Cu% and Mo%. These mineral resources are

listed at a base case cut-off grade of 0.25% Cu. Tables 14-6, 14-7 and 14-8 list the resources at

varying cut-off grades for Measured, Indicated and Inferred, respectively. Note that Table 14.5 is

reported in the imperial measure of short tons.

TABLE 14.5: MINERAL RESOURCES

TOTAL CUT-OFF ORE Cu% Mo%

Cu% TONS

Measured 0.25 443,030,204 0.384 0.010

Indicated 0.25 623,458,863 0.331 0.008

Measured & Indicated 0.25 1,066,489,067 0.353 0.009

Inferred 0.25 49,285,298 0.326 0.009

As Capstone is a Canadian issuer and BHP (the seller) is an Australian company, the author is

reporting the resources in metric units for tonnes and copper grade. However, molybdenum is

reported in the most common unit of pounds as shown in Table 14.6.



TABLE 14.6: MINERAL RESOURCES

Metric Copper Molybdenum Contained Contained

Tonnes (%) (%) Copper Molybdenum

(M) (k tonnes) (M lbs)

Measured (M) 402 0.38 0.01 1,544 89

Indicated (I) 566 0.33 0.008 1,870 99

Total M&I 968 0.35 0.009 3,414 188

Inferred 45 0.33 0.009 146 9 Notes: Mineral Resource Estimate, February 28, 2013, at a 0.25% COG. Any discrepancies in the

totals are related to rounding. This estimate has not been adjusted for the three months of mining




TABLE 14.7: MEASURED MINERAL RESOURCES

(0.25% Cut-Off Grade is Base Case)

MEASURED CUT-OFF TONS Cu% Mo%

0.1 658,485,857 0.318 0.009

0.15 606,305,870 0.335 0.009

0.2 531,284,094 0.358 0.010

0.25 443,030,204 0.384 0.010

0.3 369,175,856 0.406 0.010

TABLE 14.8: INDICATED MINERAL RESOURCES


INDICATED CUT-OFF TONS Cu% Mo%

0.1 2,001,540,875 0.222 0.006

0.15 1,517,545,777 0.253 0.006

0.2 1,057,168,839 0.287 0.007

0.25 623,458,863 0.331 0.008

0.3 348,123,236 0.378 0.009

TABLE 14.9: INFERRED MINERAL RESOURCES


INFERRED CUT-OFF TONS Cu% Mo%

0.1 228,538,299 0.196 0.005

0.15 146,690,970 0.238 0.006

0.2 88,161,913 0.281 0.007

0.25 49,285,298 0.326 0.009

0.3 26,548,094 0.374 0.011

Mineral resources are not mineral reserves until they have demonstrated economic viability.

Mineral resource estimates do not account for a resource’s mineability, selectivity, mining loss, or

dilution. These estimates include Inferred mineral resources that are normally considered too

geologically speculative for the application of economic considerations; therefore, they are unable

to be classified as mineral reserves. Also, there is no certainty that these Inferred mineral

resources will someday be converted into Measured or Indicated resources as a result of future

drilling or after applying economic considerations.



14.12 MODEL VALIDATION

A graphical validation was done on the block model. The purpose of the graphical validation is

to:

Check the reasonableness of the estimated grades, based on the estimation plan and the

nearby composites.

Compare the general drift and the local grade trends of the block model to the drift and

local grade trends of the composites.

Ensure that all required blocks are filled in.

Check that, within the model blocks, the topography has been properly accounted for.

Check the manual ballpark estimates for tonnage to determine reasonableness.

Inspect and explain, when necessary, the high-grade blocks created as a result of outliers.

A full set of cross-sections, long sections, and plans were used to check the block model on the

computer screen, showing the block grades and the composite. There was no evidence that any

blocks were wrongly estimated. It appears that every block grade can be explained as a function

of the following: the surrounding composites, the correlogram models used, and the estimation

plan applied.

These validation techniques include, but are not limited to, the following:

A visual inspection done on a section-by-section and plan-by-plan basis.

The use of grade tonnage curves.

Histograms of varying cut-off grades that demonstrate a relatively uniform, normal

distribution.

Swath Plots that compare the Ordinary Kriged blocks with the Inverse Distance and

Nearest Neighbour estimates.

Inspection of histograms to determine the distance of the first composite to the nearest

block and the average distance to blocks for all composites used.

An analysis of the Relative Variability Index that quantifies variability within the

deposit. The Analysis of Relative Variability Index may be used to quantify risk and

qualify resources for the purpose of classification in future studies.



Model Checks for Change of Support

The relative degree of smoothing in the block estimates was evaluated using the Hermitian

Polynomial Change of Support model, also known as the Discrete Gaussian Correction. With this

method, the distribution of the hypothetical block grades can be directly compared to the

estimated ordinary kriging model through the use of pseudo-grade/tonnage curves. Adjustments

are made to the block model interpolation parameters until an acceptable match is made with the

Herco distribution.

In general, the estimated model should be slightly higher in tonnage and slightly lower in grade

when compared to the Herco distribution at the projected cut-off grade. These differences

account for selectivity and other potential ore-handling issues which commonly occur during

mining.

The Herco distribution is derived from the declustered composite grades which have been

adjusted to account for the change in support moving from smaller drill hole composite samples

to the larger blocks in the model. The transformation results in a less skewed distribution, but

with the same mean as the original declustered samples. Examples of Herco plots from some of

the models are shown in Figure 14-23.



Error! Reference source not found.FIGURE 14-23: HERCO PLOTS

Overall, correspondence between models is relatively good.

It should be noted that the change of support model is a theoretical tool intended to direct model

estimation. There is uncertainty associated with the change of support model, and its results should not be

viewed as a final or correct value. In cases where the model grades are greater than the change of support

grades, the model is relatively insensitive to any changes to the modelling parameters. Any extraordinary

measures to make the grade curves change are not warranted.



Comparison of Interpolation Methods

For comparison purposes, additional grade models were generated using the inverse distance weighted

(ID2) and nearest neighbour (NN) interpolation methods. The nearest neighbour model was created using

data composited to lengths equal to the short block axis. The results of these models are compared to the

ordinary kriging (OK) models at various cut-off grades in a series of grade/tonnage graphs shown in

Figure 14-24. There is good correlation between models.

.

FIGURE 14-24: COMPARISON OF ORDINARY KRIGING (OK), INVERSE DISTANCE (ID2) AND NEAREST NEIGHBOUR

(NN) MODELS

Swath Plots (Drift Analysis)

A swath plot is a graphical display of the grade distribution derived from a series of bands, or

swaths, generated in several directions throughout the deposit. Using the swath plot, grade

variations from the ordinary kriging model are compared to the distribution derived from the

declustered nearest neighbour grade model.

On a local scale, the nearest neighbour model does not provide reliable estimations of grade, but,

on a much larger scale, it represents an unbiased estimation of the grade distribution based on the

underlying data. Therefore, if the ordinary kriging model is unbiased, the grade trends may show

local fluctuations on a swath plot, but the overall trend should be similar to the nearest neighbour

distribution of grade.

Swath plots were generated in three orthogonal directions that compare the ordinary kriging and

nearest neighbour estimates. Some examples of swath plots at various orientations are shown in

Figures 14-25 to 14-27.



FIGURE 14-25: SWATH PLOTS



FIGURE 14-26: COPPER SWATCH PLOTS



FIGURE 14-27: MOLYBDENUM SWATH PLOTS



15 ADJACENT PROPERTIES

The Pinto Valley Mine is adjacent to the Carlota Mine and near the Freeport-McMoRan Miami

Mine; Figure 15-1 shows the immediate mine location in relation to other operations/properties

within the Globe-Miami region. The author has not been able to verify the information in this section

and it should be noted that this information is not necessarily indicative of mineralization at Pinto

Valley. The sources of the information are from company websites and publically disclosed by

KGHM and Freeport McMorran.

FIGURE 15-1: PINTO VALLEY MINE AND ADJACENT PROPERTIES

15.1 CARLOTA MINE

The Carlota Mine is nearing closure and is currently in reclamation. Carlota was discovered in the

1990s and came to be one of the first copper mines designated and permitted under modern

environmental legislation. Owned entirely by KGHM International Ltd., the mine was

commissioned in late-2008 and has produced an average of 25 million pounds of cathode copper

annually for the last four years.

Carlota has been implementing a mine closure plan which optimizes cash flow while advancing

activities related to the winding down of operations. This plan is consistent with the life of mine

objectives as described in the Carlota permits which call for a staged closure plan during the last

years of mining. The mine’s timeline for closure is in accordance with current permits and

Arizona environmental regulations. Time, attention and money are spent on detailed closure plans

to ensure the mined land can be reclaimed and used for other purposes.

Carlota

Freeport



15.2 MIAMI MINE

The Miami Mine is a porphyry copper deposit that has leachable oxide and secondary sulphide

mineralization. The predominant oxide copper minerals are chrysocolla, copper-bearing clays,

malachite, and azurite. Chalcocite and covellite are the most important secondary copper sulphide

minerals.

Since about 1915, the Miami mining operation had processed copper ore using both flotation and

leaching technologies. Current operations include leaching by the solution extraction and electro-

winning (SX/EW) process. The design capacity of Miami's SX/EW plant is 200 million pounds of

copper per year.

The first prospecting expeditions visited the area in the 1860s. Copper was mined underground

until after World War II when the first open-pit mining began. Miami was among the first to

employ “vat leaching” (1926) and precipitation plants to recover oxide minerals. It did this in

conjunction with its flotation concentrator, which processed sulphide minerals. The plant’s

smelter was modernized in 1974 to meet Clean Air Act standards and was further modernized and

expanded in 1992. The success of an SX/EW plant commissioned in 1979 led to the demise of vat

leaching by the mid-1980s, and ultimately the concentrator in 1986. The rod mill was

commissioned in 1966 and the refinery in 1993; the refinery was permanently closed in 2005.



16 OTHER RELEVANT DATA AND

INFORMATION

The author of this report is not aware of any other information that is relevant to this Technical

Report.



17 INTERPRETATION AND CONCLUSIONS



approximately 4,000 ft. The Pinto Valley Mine, located within the Globe-Miami mining district of

central Arizona, which possesses other significant porphyry copper deposits associated with

Paleocene granodiorite to Granite Porphyry stocks. The Pinto Valley porphyry copper deposit has

been dismembered by faults and affected by later erosion and minor oxidation.

BHP is a large, well respected organization with well documented procedures which appear to be

adhered to although there may be room for increased confidence and continuous improvement. BHP

Copper denied the author certain information relating to its business matters that were deemed

confidential and industry-sensitive. BHP Copper, through legal counsel, determined what material

was sensitive and unavailable for release. Although it is believed that all information relevant to the

creation of this Technical Report has been disclosed, unrestricted and free access was not given to

the author due to constraints under the previously stated U.S. laws. The author is confident that all

necessary information and data was given so as not to be incorrect or misleading.

A total of 1,031 drill holes were supplied for the Pinto Valley Project; however, the assays for 62 of

those holes, as of the effective date of this report , were pending and unavailable. The drill hole

database was supplied by BHP in an electronic format. This data included drill hole collars, down

hole surveys, lithology data, and assay data with downhole from and downhole to intervals in

imperial units. The assay data included total Cu% and Mo%.

The purpose of this Technical Report was to present the resource estimate for the Pinto Valley

Deposit. Therefore, the primary interpretations and conclusions of this report are related to the data,

analysis and methods related to the calculation of the resource estimate.

In addition, this Technical Report serves as an update on the activities carried out in 2012-2013.

Based on a 0.25% Cu cut-off grade, Measured resources are 402 Mt at a grade of 0.38% Cu and

0.009% Mo, Indicated resources are 566 Mt tonnes at a grade of 0.33% Cu and 0.009% Mo, while

Inferred resources are 45 Mt at a grade of 0.33% Cu and 0.009% Mo. This resource is relatively

large, of significant grade, has favourable metallurgy, is near surface and is close to infrastructure.

In addition, the project area has further potential in the way of identified targets that warrant further

exploration.



18 RECOMMENDATIONS

In order to further evaluate the resource potential of the Pinto Valley Project and advance the project

by evaluating its economic viability, the following recommendations should be considered in 2013:

Incorporate remaining assay data from 2012-2013 drilling campaign.

To increase confidence and upgrade resource classification.

Continue with the QA/QC of the master database.

Continue density measurements and analysis.

Revise solids based on the most current assay data.

Documentation and project map of all drill data.

Improve documentation of procedures and protocols.

Continue with advanced metallurgical studies.

Continue environmental studies.

Continue with activities related to and completion of Pre-feasibility Study.

Note that a budget for the above activities was not available due to on-going activities and

information being of a proprietary nature. BHP and Capstone are cooperating with respect to the

advancement of the mine and in particular the development of the advanced studies targeted for

completion in late 2013.



19 REFERENCES

Arancibia, O.N. and Clark, A.H., 1996, Early magnetite-amphibolite-plagioclase alteration-

mineralization in the Island Copper porphyry copper-gold-molybdenum deposit, British

Columbia: Economic Geology, v. 91, p. 402-438.

Baird, B. and Preece, R., June 2012 Mineral Resource & Ore Reserve Competent Persons Report:

Pinto Valley.

Breitrick, R.A., and Lenzi, G.W., 1987, Pinto Valley copper deposit , Arizona Geological Survey Special Paper 5.

CIM Standing Committee on Reserve Definitions, 2010. CIM Definition Standards – For Mineral

Resources and Mineral Reserves. Retrieved from

http://web.cim.org/UserFiles/File/CIM_DEFINITON_STANDARDS_Nov_2010.pdf, 10p.

Creasey, S. C., “Chronology of intrusion and deposition of porphyry copper ores, Globe-Miami

district, Arizona,” Economic Geology 75 (1980): 830–44.

Davis, B.M., 1997, Some methods of producing interval estimates for global and local resources;

Society for Mining, Metallurgy, and Exploration Preprint 97-5, 5p.

Deutsch, C.V., Journel, A.G. 1998 GSLIB: Geostatistical Software Library and User’s Guide.

Oxford University Press, Oxford, New York.

Hedenquist, J.W., Arribas, A., Jr., and Gonzalez-Urien, E., 2000, Exploration for epithermal gold

deposits: Reviews in Economic Geology, v. 13, p. 245-277.

Houlding, S.W. 1999 Practical Geostatistics, Modeling and Spatial Analysis. Springer-Verlag,

Berlin Heidelberg.

Isaaks, E.H. 2001 SAGE: Geostatistical A Spatial and Geostatistical Environment for

Variography, Isaaks&Co., San Mateo, California.

Isaaks, E.H., Srivistava, R.M. 1989 An Introduction to Applied Geostatistics, Oxford University

Press, Oxford, New York.

Journel, A., Huijbregts, C.J., 1978, Mining Geostatics. London: Academic Press. 600p.

Meinert, L.D., 2000, Gold in skarns related to epizonal intrusions: Reviews in Economic

Geology, v. 13, p. 347-375.

Mintec, Inc. 2003 MineSight 3D System Software and Documentation. Mintec, inc., Tucson,

Arizona.



Olmstead H W, Johnson D. W. 1966 - Inspiration geology: in Titley S R, Hicks C

L 1966 Geology of the Porphyry Copper Deposits, Southwestern North America University of

Arizona Press, Tucson pp 143-150

Peterson, N. P., “Geology and Ore Deposits of the Globe-Miami District, Arizona” U. S.

Geological Survey Prof. Paper 342, 151 p. (1962).

Peterson, N. P., Gilbert, C. M. and Quick, G. L., “Geology and Ore Deposits of the Castle Dome

Area, Gila County, Arizona” U. S. Geological Survey Bulletin 971 (1951).

Sillitoe, R.H., 2010, Porphyry Copper Systems: Economic Geology, v. 105, p. 3-41.

Wellmer, F.-W. 1998 Statistical Evaluations in Exploration for Mineral Deposits. Springer-

Verlag, Berlin Heidelberg.

Winant, A. R. and Seedorff, E., 2010, Sericitic and Advanced Argillic Mineral Assemblages and

Their Relationship to Copper Mineralization, Resolution Porphyry Cu - (Mo) Deposit, Superior

District , Pinal County, Arizona



20 DATE AND SIGNATURES

I, Garth David Kirkham, P.Geo., do hereby certify that:

I am a consulting geoscientist with an office at 6331 Palace Place, Burnaby, British

Columbia.

1) This certificate applies to the entitled “Resource Estimate for the Pinto Valley Deposit NI 43-101 Technical Report” dated the 12th of June, 2013 (“Technical Report”) prepared for

Capstone Mining Corp., Vancouver, B.C .

2) I am a graduate of the University of Alberta in 1983 with a BSc. I have continuously practiced my profession since 1988. I have worked on and been involved with NI43-101 studies on the Halilağa, Ajax and Tres Chorreras porphyry deposits.

3) I am a member in good standing of the Association of Professional Engineers and Geoscientists of BC (APEGBC) in addition to Ontario (APGO), Alberta (APEGGA), Manitoba (APEGM), and the Northwest Territories and Nunavut (NAPEGG).

4) I have visited the property on May 14th, 2013.

5) In the independent report titled entitled “Resource Estimate for the Pinto Valley Deposit NI 43-101 Technical Report” dated the 12th of June, 2013, I am responsible for all Sections on the Technical Report. I am also responsible for overall study management and compilation.

6) I have not had prior had involvement with the property.

7) I am independent of Capstone Mining Corporation as defined in Section 1.5 of National

Instrument 43-101.

8) I have read the definition of “qualified person” set out in National Instrument 43-101 and certify that by reason of education, experience, independence and affiliation with a professional association, I meet the requirements of an Independent Qualified Person as defined in National Instrument 43-101.

9) I am not aware of any material fact or material change with respect to the subject matter of the technical report that is not reflected in the Technical Report and that , at the effective date of the Technical Report, to the best of my knowledge, information and belief, this technical report contains all scientific and technical information that is

required to be disclosed to make the technical report not misleading.

10) I have read National Instrument 43-101, Standards for Disclosure of Mineral Projects and Form 43-101F1. This technical report has been prepared in compliance with that

instrument and form.

Dated this 12th

day of June, 2013 in Burnaby, British Columbia

“Garth Kirkham” {signed and sealed}

Garth Kirkham, P.Geo. Kirkham Geosystems Ltd.


CAPSTONE MINING CORP. NI 43-101 TECHNICAL REPORT PINTO VALLEY PROPERTY PAGE A-1

APPENDIX A: CLAIMS AND TENURE



Unpatented Mining Claims and Mill Sites

BLM Serial

Number

Name of Claim Docket Book or

Document No.

Page

1 AMC 7735 Mary 1 426 246

2 AMC 7736 Mary 2 426 247

3 AMC 7737 Mary 3 426 248

4 AMC 7738 Mary 4 426 249

5 AMC 7739 Mary 5 426 250

6 AMC 7740 Mary 6 426 251

7 AMC 27738 Cowboy No. 1 amended 42 127



10 AMC 27741 Rita 47 150

11 AMC 27742 Copper Site amended 42 124

12 AMC 27743 Pine Tree amended 42 126

13 AMC 384552 BOB #1 2007-011669

14 AMC 384553 BOB #2 2007-011670

15 AMC 384554 BOB #3 2007-011671

16 AMC 384555 BOB #4 2007-011672

17 AMC 384556 BOB #5 2007-011673

18 AMC 384557 BOB #6 2007-011674

19 AMC 27747 Hammer 47 147

20 AMC 27748 Joan 47 148

21 AMC 27749 Southern Cross 47 151

22 AMC 27750 Midnight Test amended 42 125



23 AMC 27751 Copper Bottom No. 1 amended 42 195

24 AMC 27752 Copper Bottom No. 6 amended 42 194

25 AMC 27753 Copper Bottom No. 8 47 385



28 AMC 27757 Hill No. 2 280 10

29 AMC 27758 Hill No. 3 280 11

30 AMC 27759 Hill No. 4 280 12

31 AMC 27760 Hill No. 5 280 13

32 AMC 27761 Hill No. 6 280 14

33 AMC 27762 Hill No. 7 280 15

34 AMC 27763 Hill No. 8 280 16

35 AMC 27764 Hill No. 9 280 17

36 AMC 27765 Hill No. 10 280 18

37 AMC 27994 Tunnel 10 502

38 AMC 28023 Peak No. 3 333 331

39 AMC 28025 Peak No. 7 333 333

40 AMC 28026 Peak No. 8 333 334

41 AMC 28027 Peak No. 9 335 703

42 AMC 28028 Peak No. 10 335 704

43 AMC 28031 Peak No. 14 367 606

44 AMC 28032 Peak No. 15 367 607

45 AMC 28033 Peak No. 17 367 608

46 AMC 28036 Peak No. 22 390 9



47 AMC 28037 Peak No. 24 402 700

48 AMC 28038 Peak 25 405 974

49 AMC 28040 Peak 28 414 719

50 AMC 28059 Zee No. 2 284 855

51 AMC 35792 Quartz Site (A) 466 191

52 AMC 35793 Quartz Site No. 2 (A) 466 190















67 AMC 35820 Quartz Site #28 (A) 466 165

68 AMC 35821 Silver Bell (A) 466 192

69 AMC 35824 Janie No. 1 (A) 466 194

70 AMC 35825 Janie No. 2 (A) 466 195



71 AMC 35830 Copper Bottom #2 (A) 466 202






77 AMC 40744 East Water 469 458

78 AMC 97644 Peak 34 493 567

79 AMC 129535 Peak 94 534 775

80 AMC 138512 K1 542 700

81 AMC 138513 K2 542 702

82 AMC 138514 K3 542 704

83 AMC 138515 K4 542 706

84 AMC 138516 K5 542 708

85 AMC 138517 K6 542 710

86 AMC 138518 K7 542 712

87 AMC 138519 K8 542 714

88 AMC 138520 K9 542 716

89 AMC 138521 K10 542 718

90 AMC 138522 K11 542 720

91 AMC 138523 K12 542 722

92 AMC 138524 K13 542 724

93 AMC 138525 K14 542 726

94 AMC 138526 K15 542 728



95 AMC 138527 K16 542 730

96 AMC 138528 K17 542 732

97 AMC 138529 K18 542 734

98 AMC 138530 K19 542 736

99 AMC 138531 K20 542 738

100 AMC 138532 K21 542 740

101 AMC 138533 K22 542 742

102 AMC 138534 K23 542 744

103 AMC 138535 K24 542 746

104 AMC 138536 K25 542 748

105 AMC 138537 K26 542 750

106 AMC 138538 K27 542 752

107 AMC 138539 K28 542 754

108 AMC 138540 K29 542 756

109 AMC 138541 K30 542 758

110 AMC 138542 K31 542 760

111 AMC 138543 K32 542 762

112 AMC 138544 K33 542 764

113 AMC 138545 K34 542 766

114 AMC 138546 K35 542 768

115 AMC 142565 M1 549 363

116 AMC 215329 D1 606 157

117 AMC 215330 D2 606 159

118 AMC 215331 D3 606 161



119 AMC 215332 D4 606 163

120 AMC 215333 D5 606 165

121 AMC 215334 D6 606 167

122 AMC 215335 D7 606 169

123 AMC 215336 D8 606 171

124 AMC 215337 D9 606 173

125 AMC 215338 D10 606 175

126 AMC 215339 D11 606 177

127 AMC 215340 D12 606 179

128 AMC 215341 D13 606 181

129 AMC 215344 D16 606 187

130 AMC 215345 D17 606 189

131 AMC 319065 Hill No. 11 855 828

132 AMC 319066 Hill No. 12 855 830

133 AMC 319067 Hill No. 13 855 832

134 AMC 327204 P1 93 634671

135 AMC 327205 P2 93 634672

136 AMC 327206 P3 93 634673

137 AMC 327207 P4 93 634674

138 AMC 327208 P5 93 634675

139 AMC 327209 P6 93 634676

140 AMC 327210 P7 93 634677

141 AMC 327211 P8 93 634678

142 AMC 327212 P9 93 634679



143 AMC 327213 P10 93 634680

144 AMC 327214 P11 93 634681

145 AMC 327215 P12 93 634682

146 AMC 327216 P13 93 634683

147 AMC 327217 P14 93 634684

148 AMC 327218 P15 93 634685

149 AMC 327219 P16 93 634686

150 AMC 327220 P17 93 634687

151 AMC 327221 P18 93 634688

152 AMC 364145 E-1 2005 510

153 AMC 364146 E-2 2005 511

154 AMC 364147 E-3 2005 512

155 AMC 364148 E-4 2005 513

156 AMC 370110 RJ #1 2006 3905

157 AMC 370111 RJ #2 2006 3906

158 AMC 370112 RJ #3 2006 3907

159 AMC 370113 RJ #4 2006 3908

160 AMC 370114 RJ #5 2006 3909

161 AMC 370115 RJ #6 2006 3910

162 AMC 370116 RJ #7 2006 3911

163 AMC 370117 RJ #8 2006 3912

164 AMC 370118 RJ #9 2006 3913

165 AMC 370119 RJ #10 2006 3914

166 AMC 370120 RJ #11 2006 3915



167 AMC 370121 RJ #12 2006 3916

168 AMC 370122 RJ #13 2006 3917

169 AMC 370123 RJ #14 2006 3918

170 AMC 370124 RJ #15 2006 3919

171 AMC 370125 RJ #16 2006 3920

172 AMC 370126 RJ #17 2006 3921

173 AMC 370127 RJ #18 2006 3922

174 AMC 370128 RJ #19 2006 3923

175 AMC 370129 RJ #20 2006 3924

176 AMC 370130 RJ #21 2006 3925

177 AMC 370131 RJ #22 2006 3926

178 AMC 370132 RJ #23 2006 3927

179 AMC 370133 RJ #24 2006 3928

180 AMC 370134 RJ #25 2006 3929

181 AMC 370135 RJ #26 2006 3930

182 AMC 370136 RJ #27 2006 3931

183 AMC 370137 RJ #28 2006 3932

184 AMC 370138 RJ #29 2006 3933

185 AMC 370139 RJ #30 2006 3934

186 AMC 370140 RJ #31 2006 3935

187 AMC 370141 RJ #32 2006 3936

188 AMC 370142 RJ #33 2006 3937

189 AMC 370143 RJ #34 2006 3938

190 AMC 370144 RJ #35 2006 3939



191 AMC 370145 RJ #36 2006 3940

192 AMC 370146 RJ #37 2006 3941

193 AMC 370147 RJ #38 2006 3942

194 AMC 370148 RJ #39 2006 3943

195 AMC 370149 RJ #40 2006 3944

196 AMC 370150 RJ #41 2006 3945

197 AMC 370151 RJ #42 2006 3946

198 AMC 370152 RJ #43 2006 3947

199 AMC 370153 RJ #44 2006 3948

200 AMC 370154 RJ #45 2006 3949

201 AMC 370155 RJ #46 2006 3950

202 AMC 370156 RJ #47 2006 3951

203 AMC 370157 RJ #48 2006 3952

204 AMC 370158 RJ #49 2006 3953

205 AMC 370159 RJ #50 2006 3954

206 AMC 370160 RJ #51 2006 3955

207 AMC 370161 RJ #52 2006 3956

208 AMC 370162 RJ #53 2006 3957

209 AMC 370163 RJ #54 2006 3958

210 AMC 370164 RJ #55 2006 3959

211 AMC 370165 RJ #56 2006 3960

212 AMC 370166 RJ #57 2006 3961

213 AMC 370167 RJ #58 2006 3962

214 AMC 370168 RJ #59 2006 3963



215 AMC 370169 RJ #60 2006 3964

216 AMC 370170 RJ #61 2006 3965

217 AMC 370171 RJ #62 2006 3966

218 AMC 370172 RJ #63 2006 3967

219 AMC 370173 RJ #64 2006 3968

220 AMC 384697 RJ #65 2007 12073

221 AMC 384698 RJ #66 2007 12074

222 AMC 384699 RJ #67 2007 12075

223 AMC 384700 RJ #68 2007 12076

224 AMC 384701 RJ #69 2007 12077

225 AMC 384702 RJ #70 2007 12078

226 AMC 384703 RJ #71 2007 12079

227 AMC 384704 RJ #72 2007 12080

228 AMC 393547 TOE 20 2008 9417

229 AMC 422569 CWL 1 2013 3544

230 AMC 422570 CWL 2 2013 3545

231 AMC 422571 CWL 3 2013 3546

232 AMC 422572 CWL 4 2013 3547

233 AMC 422573 CWL 5 2013 3548

234 AMC 422574 CWL 6 2013 3549

235 AMC 422575 CWL 7 2013 3550

236 AMC 422576 CWL 8 2013 3551

237 AMC 422577 CWL 9 2013 3552

238 AMC 422578 CWL 10 2013 3553



239 AMC 422579 CWL 11 2013 3554

240 AMC 422580 CWL 12 2013 3555

241 AMC 422581 CWL 13 2013 3556

242 AMC 422582 CWL 14 2013 3557

243 AMC 422583 CWL 15 2013 3558

244 AMC 422584 CWL 16 2013 3559

245 AMC 422585 CWL 17 2013 3560

246 AMC 422586 CWL 18 2013 3561

247 AMC 422587 CWL 19 2013 3562

248 AMC 422588 CWL 20 2013 3563

249 AMC 422589 CWL 21 2013 3564

250 AMC 422590 CWM 1 2013 3565

251 AMC 422591 CWM 2 2013 3566

252 AMC 422592 CWM 3 2013 3567

253 AMC 422593 CWM 4 2013 3568

254 AMC 422594 CWM 5 2013 3569

255 AMC 422595 CWM 6 2013 3570

256 AMC 422596 CWM 7 2013 3571

257 AMC 422597 CWM 8 2013 3572

258 AMC 422598 CWM 9 2013 3573

259 AMC 422599 CWM 10 2013 3574

260 AMC 422600 CWM 11 2013 3575

261 AMC 422601 CWM 12 2013 3576

262 AMC 422602 CWM 13 2013 3577



263 AMC 422603 CWM 14 2013 3578

264 AMC 422604 CWM 15 2013 3579

265 AMC 422605 CWM 16 2013 3580

266 AMC 422606 CWM 17 2013 3581

267 AMC 422607 CWM 18 2013 3582

268 AMC 422608 CWM 19 2013 3583

269 AMC 422609 CWM 20 2013 3584

270 AMC 422610 CWM 21 2013 3585

271 AMC 422611 CWM 22 2013 3586

272 AMC 422612 CWM 23 2013 3587

273 AMC 422613 CWM 24 2013 3588

274 AMC 422614 CWM 25 2013 3589

275 AMC 422615 CWM 26 2013 3590

276 AMC 422616 CWM 27 2013 3591

277 AMC 422617 CWM 28 2013 3592

278 AMC 422618 CWM 29 2013 3593

279 AMC 422619 CWM 30 2013 3594

280 AMC 422620 CWM 31 2013 3595

281 AMC 422621 CWM 32 2013 3596

282 AMC 422622 CWM 33 2013 3597

283 AMC 422623 CWM 34 2013 3598

284 AMC 422624 CWM 35 2013 3599

285 AMC 422625 CWM 36 2013 3600

286 AMC 422626 CWM 37 2013 3601



287 AMC 422627 CWM 38 2013 3602

288 AMC 422628 CWM 39 2013 3603

289 AMC 422629 CWM 40 2013 3604

290 AMC 422630 CWM 41 2013 3605

291 AMC 422631 CWM 42 2013 3606

292 AMC 422632 CWM 43 2013 3607

293 AMC 422633 CWM 44 2013 3608

294 AMC 422634 CWM 45 2013 3609

295 AMC 422635 CWM 46 2013 3610

296 AMC 422636 CWM 47 2013 3611

297 AMC 422637 CWM 48 2013 3612

298 AMC 422638 CWM 49 2013 3613

299 AMC 422639 CWM 50 2013 3614

300 AMC 422640 CWM 51 2013 3615

301 AMC 422641 CWM 52 2013 3616

302 AMC 422642 CWM 53 2013 3617

303 AMC 422643 CWM 54 2013 3618

304 AMC 422644 CWM 55 2013 3619

305 AMC 422645 CWM 56 2013 3620

306 AMC 422646 CWM 57 2013 3621

307 AMC 422647 CWM 58 2013 3622

308 AMC 422648 CWM 59 2013 3623

309 AMC 422649 CWM 60 2013 3624

310 AMC 422650 CWM 61 2013 3625



311 AMC 422651 CWM 62 2013 3626

312 AMC 422652 CWM 63 2013 3627

313 AMC 422653 CWM 64 2013 3628

314 AMC 422654 CWM 65 2013 3629

315 AMC 422655 CWM 66 2013 3630

316 AMC 422656 CWM 67 2013 3631

317 AMC 422657 CWM 68 2013 3632

318 AMC 422658 CWM 69 2013 3633

319 AMC 422659 CWM 70 2013 3634

320 AMC 422660 CWM 71 2013 3635

321 AMC 422661 CWM 72 2013 3636

322 AMC 422662 CWM 73 2013 3637

323 AMC 422663 CWM 74 2013 3638

324 AMC 422664 CWM 75 2013 3639

325 AMC 422665 CWM 76 2013 3640

326 AMC 422666 CWM 77 2013 3641

327 AMC 422667 CWM 78 2013 3642

328 AMC 422668 CWM 79 2013 3643

329 AMC 422669 CWM 80 2013 3644



Patented and Fee Properties

(Including Tract and Homestead Entry Surveys)

No. Tax Parcel No. Description/Location

204-10-007E Tract 40, according to Map 474, Gila County, Arizona

204 10 007A Part of Tract 40, according to Map #474, Gila County, Arizona

204 10 007B A parcel of land within Tract 40 according to Map #474, Gila

County, Arizona

204 10 004 Tract 41, according to Map #474, Gila County, Arizona

204-10-006 A portion of Homestead Entry Survey No. 71, as shown on plat

on file in the B.L.M. as granted by Patent recorded in Book 21, Page 465 , Gila County, Arizona

204-10-005 Layton Ranch consisting of 27.570 acres, being part of

Homestead Entry Survey No. 71, as shown on plat on file in the

B.L.M. as granted by Patent recorded in Dkt 57, Page 314, Gila County, Arizona

204-10-002 Homestead Entry Survey 441, as shown on plat on file in the

B.L.M. as granted by Patent recorded in Dkt 57, Page 314, Gila County, Arizona



Patented Mining Claims

NO NAME MINERAL SURVEY NO.

(on file with BLM)

BOOK

(Mining

Deeds)

PAGE

Lime Bluff 3667 14 341

Kahn Spring 3667 14 341

King of Gold Gulch 3667 14 341

White Eagle 3667 14 341

Arizona 3667 14 341

East End 3667 14 341

Anna 3667 14 341

Anna No. 2 3667 14 341

Katy 3667 14 341

Proxy 3609 14 322

Bingo 3570 14 272

Blind Tiger No. 1 3570 14 272



North Star 3570 14 272

Brunton 3570 14 272

Pick 3570 14 272

Axe 3570 14 272

Wedge 3570 14 272

Oversight 3570 14 272

Little Annie 3570 14 272

Glory 3570 14 272

Czar 3570 14 272

Owl 3570 14 272




(on file with BLM)

BOOK

(Mining Deeds)

PAGE

Grey Eagle 3570 14 272

Laurel 3570 14 272

Forgotten 3570 14 272

Bell 3570 14 272

Castle Dome 3570 14 272

Peerless 3570 14 272

Gladiator 3570 14 272

Turquois No. 1 3570 14 272

Turquois No. 2 3570 14 272

Belle of the Brambles 3570 14 272

Humbolt 3570 14 272

Emma 3570 14 272

Virginia 3570 14 272

First Choice 3570 14 272

Monastic 3570 14 272

Little Doris 3821 14 455

Alice 3821 14 455

Copper Belt No. 2 3821 14 455

Central Pacific 2806 11 141

South Pacific 2806 11 141

Railroad 2806 11 141




(on file with BLM)

BOOK

(Mining

Deeds)

PAGE

Tunnel 2756 11 173

Badger 2756 11 173

Dewey 2756 11 173

North Pacific 2756 11 173

Hobo 2756 11 173

96 2756 11 173

Baltimore 2756 11 173

Summit 2756 11 173

Bear 2756 11 173

Bull 2756 11 173

Boston 2756 11 173

Argus 2756 11 173

Standard 2756 11 173

Director 2756 11 173

Selby 2756 11 173

United States Fraction 2756 11 173

Indicator 3563 14 260

Sulphide 3561 14 262

Central Star Lode 3561 14 262

Copper Queen 2767 14 143

Copper Prince 2767 14 143



NO NAME MINERAL SURVEY

NO. (on file with BLM)

BOOK

(Mining Deeds)

PAGE

Copper Cave Lode 2767 14 143

Scorpion 3562 14 263

Continental (Lot 37A) General No. 110 1 507



Patented Mill Sites

Tax

Parcel

NAME PATENT

NO.

MINERAL SURVEY

NO.

BOOK PAGE RECORDING

DATE

1. 204-08-003 Peak No.1 2860024 4831 669 858 4/15/86

2. 204-08-004 Peak No. 2 2860025 4832 669 862 4/15/86

3. 204-08-005 Peak No. 6 2860026 4833 669 866 4/15/86

4. 204-08-006 Peak No. 11 2860027 4834 669 870 4/15/86

5. 204-08-007 Peak No.13 2860028 4835 669 874 4/15/86

6. 204-08-008 Peak No. 18 2860029 4836 669 878 4/15/86

7. 204-08-009 Peak No. 21 2860030 4837 669 882 4/15/86

8. 204-08-009 Peak No. 26 2860031 4838 669 886 4/15/86

9. 204-08-010 Peak No. 70 2860032 4840 669 890 4/15/86

10. 204-08-010 Peak No. 74 2860033 4841 669 894 4/15/86

11. 204-10-011 Peak No. 75 2860034 4842 669 898 4/15/86

12. 204-10-012 Peak No. 77 2860035 4843 669 902 4/15/86

13. 204-10-007D Pinto Valley No. 1 02-77-0009 4686 427 419 6/2/77

14. 204-10-007D Pinto Valley No. 2 02-77-0009 4686 427 419 6/2/77

15. 204-10-007D Pinto Valley No. 3 02-77-0009 4686 427 419 6/2/77

16. 204-10-007D Pinto Valley No. 4 02-77-0009 4686 427 419 6/2/77

17. 204-10-007D Pinto Valley No. 5 02-77-0009 4686 427 419 6/2/77

18. 204-10-007D Pinto Valley No. 6 02-77-0009 4686 427 419 6/2/77

19. 204-10-007D Pinto Valley No. 7 02-77-0009 4686 427 419 6/2/77

20. 204-10-007D Pinto Valley No. 8 02-77-0009 4686 427 419 6/2/77

21. 204-10-007D Pinto Valley No. 9 02-77-0009 4686 427 419 6/2/77



Tax

Parcel

NAME PATENT

NO.

MINERAL

SURVEY

NO.

BOOK PAGE RECORDING

DATE

22. 204-10-007D Pinto Valley No. 10 02-77-0009 4686 427 419 6/2/77

23. 204-10-007D Pinto Valley No. 11 02-77-0009 4686 427 419 6/2/77

24. 204-10-007D Pinto Valley No. 12 02-77-0009 4686 427 419 6/2/77

25. 204-10-007D Pinto Valley No. 13 02-77-0009 4686 427 419 6/2/77

26. 204-10-007D Pinto Valley No. 14 02-77-0009 4686 427 419 6/2/77

27. 204-10-007D Pinto Valley No. 15 02-77-0009 4686 427 419 6/2/77

28. 204-10-007D Pinto Valley No. 16 02-77-0009 4686 427 419 6/2/77

29. 204-10-007D Pinto Valley No. 17 02-77-0009 4686 427 419 6/2/77

30. 204-10-007D Pinto Valley No. 18 02-77-0009 4686 427 419 6/2/77

31. 204-10-007D Pinto Valley No. 19 02-77-0009 4686 427 419 6/2/77

32. 204-10-007D Pinto Valley No. 20 02-77-0009 4686 427 419 6/2/77

33. 204-10-007D Pinto Valley No. 21 02-77-0009 4686 427 419 6/2/77

34. 204-10-007D Pinto Valley No. 22 02-77-0009 4686 427 419 6/2/77

35. 204-10-007D Pinto Valley No. 23 02-77-0009 4686 427 419 6/2/77

36. 204-10-007D Pinto Valley No. 24 02-77-0009 4686 427 419 6/2/77

37. 204-10-007D Pinto Valley No. 25 02-77-0009 4686 427 419 6/2/77

38. 204-10-007D Pinto Valley No. 26 02-77-0009 4686 427 419 6/2/77

39. 204-10-007D Pinto Valley No. 229 02-77-0009 4686 427 419 6/2/77

40. 204-10-007D Pinto Valley No. 231 02-77-0009 4686 427 419 6/2/77

41. 204-10-007D Pinto Valley No. 232 02-77-0009 4686 427 419 6/2/77

42. 204-10-007D Pinto Valley No. 233 02-77-0009 4686 427 419 6/2/77

43. 204-10-007D Pinto Valley No. 234 02-77-0009 4686 427 419 6/2/77



Tax

Parcel

NAME PATENT

NO.

MINERAL

SURVEY

NO.

BOOK PAGE RECORDING

DATE

44. 204-10-007D Pinto Valley No. 235 02-77-0009 4686 427 419 6/2/77

45. 204-10-007D Pinto Valley No. 236 02-77-0009 4686 427 419 6/2/77

46. 204-10-007D Pinto Valley No. 237 02-77-0009 4686 427 419 6/2/77

47. 204-10-007D Pinto Valley No. 238 02-77-0009 4686 427 419 6/2/77

48. 204-10-007D Pinto Valley No. 239 02-77-0009 4686 427 419 6/2/77

49. 204-10-007D Pinto Valley No. 240 02-77-0009 4686 427 419 6/2/77

50. 204-10-007D Pinto Valley No. 241 02-77-0009 4686 427 419 6/2/77

51. 204-10-007D Pinto Valley No. 242 02-77-0009 4686 427 419 6/2/77

52. 204-10-007D Pinto Valley No. 243 02-77-0009 4686 427 419 6/2/77

53. 204-10-007D Pinto Valley No. 244 02-77-0009 4686 427 419 6/2/77


CAPSTONE MINING CORP. NI 43-101 TECHNICAL REPORT PINTO VALLEY PROPERTY PAGE B-1

APPENDIX B: PERMITS


CAPSTONE MINING CORP. NI 43-101 TECHNICAL REPORT PINTO VALLEY PROPERTY PAGE B-2

Permits, licenses and authorizations for the Pinto Valley Project

Item Agency Original Issue Date

Aquifer Protection Permit No. P-100329


9/17/12

AZPDES Point Source

Discharge Permit No. AZ0020401

State of Arizona

Department of Water Resources

11/28/08

AZPDES Stormwater Multi-Sector General Permit No.

AZMSG 2010-003


08/10/11

Synthetic Minor Class II Air Operating Permit No. 54118


5/8/12

Pinto Valley Operations Mined Land Reclamation

Plan

Arizona State Mines Inspector

8/12

The following permits included in the Plan of

Operations:




Plan of Operation

POO-001

Plan of Operation POO-002 Plan of

Operation POO-003


Special Use Permit

GLO 445303

Special Use Permit Tonto 468

USDA Forest Service 9/24/2009

Department of Weights and

Measures BMF #4277 and #4278

Arizona Department of

Weights and Measures

[●]


CAPSTONE MINING CORP. NI 43-101 TECHNICAL REPORT PINTO VALLEY PROPERTY PAGE C-1

APPENDIX C: DRILL HOLE COLLARS



HOLE # EAST NORTH ELEV AZ DIP DEPTH

1 -10128 7326 4378 0 -90 608

2 -10042 6935 4378 0 -90 1193

3 -9892 6520 4368 0 -90 823

4 -15146 4502 4083 0 -90 2293

5 -10193 6461 4369 0 -90 851

6 -9541 6643 4412 0 -90 950

7 -9679 6206 4302 0 -90 670

8 -10192 7530 4379 0 -90 1710

9 -8937 6730 4506 0 -90 1083

10 -9644 5609 4172 0 -90 1011

11 -10532 5349 4105 0 -90 1230

12 -10879 6328 4337 0 -90 985

13 -11189 7236 4357 0 -90 1666

14 -8661 5809 4254 0 -90 444

15 -12130 7131 4365 0 -90 1592

16 -11392 8226 4415 0 -90 1842

17 -10491 8472 4543 0 -90 1669

18 -8972 7957 4713 0 -90 940

19 -8051 7065 4526 0 -90 1624

20 -7710 6121 4442 0 -90 798

21 -15003 5629 4230 0 -90 1542

22 -14408 3689 3872 0 -90 818

23 -14582 4757 4063 0 -90 1463

24 -12230 5507 4060 0 -90 845

25 -13113 4164 3993 0 -90 1075

26 -14353 3420 3878 0 -90 1435

27 -14211 3702 3844 0 -90 40

28 -14325 3838 3888 0 -90 1314

29 -14365 3215 3839 0 -90 1210

30 -15948 7610 3762 0 -90 1137

31 -15125 3081 3950 0 -90 1032

32 -14525 8832 4161 0 -90 1200

33 -11323 6066 4149 0 -90 500

34 -11174 5899 4152 0 -90 500

35 -11130 6119 4249 0 -90 600

36 -15130 3089 3950 0 -90 2136

37 -11279 6285 4262 0 -90 632



38 -10937 6171 4307 0 -90 660

39 -11455 6548 4312 0 -90 802

40 -11648 6495 4282 0 -90 1091

41 -18006 6859 3680 0 -90 2170

42 -11835 6445 4321 0 -90 1130

43 -12034 6390 4388 0 -90 1006

44 -12198 6345 4469 0 -90 912

45 -12420 6284 4513 0 -90 1013

46 -12603 6234 4554 0 -90 1009

47 -12832 6275 4635 0 -90 1360

48 -11087 6338 4330 0 -90 830

49 -12665 6424 4548 0 -90 1543

50 -13051 6319 4710 0 -90 1840

51 -12472 6477 4494 0 -90 1669

52 -11166 6627 4358 0 -90 1173

53 -10973 6680 4363 0 -90 1358

54 -10587 6786 4277 0 -90 1272

55 -10394 6838 4290 0 -90 1240

56 -10201 6891 4298 0 -90 1113

57 -10780 6733 4350 0 -90 1390

58 -9815 6997 4451 0 -90 1356

59 -9622 7049 4507 0 -90 1322

60 -11218 6820 4358 0 -90 1443

61 -10674 6347 4336 0 -90 1061

62 -11060 6241 4311 0 -90 1216

63 -11007 6049 4250 0 -90 840

64 -10481 6400 4331 0 -90 1011

65 -11271 7013 4358 0 -90 1443

66 -9710 6611 4383 0 -90 928

67 -9324 6716 4490 0 -90 1125

68 -11324 7206 4359 0 -90 1489

69 -9131 6769 4528 0 -90 1118

70 -13344 6252 4751 0 -90 1926

71 -11990 6609 4357 0 -90 1442

72 -12766 6397 4594 0 -90 1679

73 -12043 6802 4371 0 -90 1411

74 -13533 6187 4715 0 -90 1935

75 -12815 6591 4552 0 -90 1547

76 -15077 5765 4213 0 -90 1793

77 -12096 6995 4375 0 -90 1325



78 -12867 6784 4512 0 -90 1552

79 -12201 7381 4443 0 -90 1393

80 -13741 6130 4599 0 -90 1639

81 -14884 5817 4251 0 -90 1291

82 -12920 6977 4511 0 -90 1551

83 -10447 7031 4317 0 -90 1357

84 -14691 5870 4260 0 -90 1300

85 -13890 6089 4512 0 -90 1552

86 -10343 6650 4278 0 -90 1183

87 -12973 7170 4502 0 -90 1317

88 -14498 5923 4313 0 -90 1353

89 -10236 6260 4404 0 -90 1039

90 -14112 6029 4430 0 -90 1470

91 -10429 6207 4339 0 -90 974

92 -14305 5976 4392 0 -90 1432

93 -13595 6377 4674 0 -90 1714

94 -10622 6154 4328 0 -90 963

95 -14744 6063 4264 0 -90 1304

96 -14358 6169 4379 0 -90 1329

97 -13657 6568 4674 0 -90 1714

98 -10814 6101 4310 0 -90 945

99 -14799 6259 4275 0 -90 1315

100 -13692 6766 4646 0 -90 1686

101 -14411 6362 4379 0 -90 1419

102 -10043 6312 4383 0 -90 1018

103 -14463 6555 4418 0 -90 1458

104 -9850 6365 4327 0 -90 872

105 -9657 6418 4357 0 -90 902

106 -14849 6449 4313 0 -90 947

107 -13972 6274 4490 0 -90 1395

108 -13761 5503 4129 0 -90 1169

109 -14025 6467 4505 0 -90 1455

110 -12372 6505 4463 0 -90 1502

111 -13708 5310 4130 0 -90 765

112 -13134 5483 4130 0 -90 540

113 -12419 6699 4431 0 -90 1156

114 -13200 6485 4672 0 -90 1396

115 -12481 6889 4427 0 -90 1152

116 -13249 6675 4625 0 -90 1350

117 -12534 7082 4455 0 -90 1180



118 -13296 6874 4594 0 -90 1319

119 -14078 6660 4513 0 -90 1238

120 -14638 5677 4265 0 -90 990

121 -14995 5372 4225 0 -90 950

122 -14922 5198 4175 0 -90 900

123 -14866 4993 4036 0 -90 761

124 -15266 4884 4121 0 -90 846

125 -15190 4697 4116 0 -90 841

126 -13217 5029 4127 0 -90 852

127 -13603 4924 4129 0 -90 539

128 -15093 4309 4071 0 -90 796

129 -15637 4782 3877 0 -90 332

130 -15532 4396 3866 0 -90 591

131 -15640 4750 3877 0 -90 602

132 -14041 5011 4128 0 -90 853

133 -15658 5191 3868 0 -90 593

134 -13024 5082 4120 0 -90 530

135 -15748 5581 3827 0 -90 552

136 -11604 6715 4320 0 -90 1045

137 -14418 4493 4090 0 -90 500

138 -14621 5060 4037 0 -90 762

139 -11657 6908 4324 0 -90 1049

140 -13936 4625 4224 0 -90 634

141 -11710 7100 4353 0 -90 1078

142 -13901 5257 4130 0 -90 540

143 -15185 5527 4213 0 -90 938

144 -10833 6926 4297 0 -90 1022

145 -13410 4977 4128 0 -90 538

146 -10885 7119 4358 0 -90 1083

147 -13159 4817 4133 0 -90 543

148 -13359 7064 4573 0 -90 1253

149 -13812 3415 3844 0 -90 569

150 -13413 3317 3843 0 -90 748

151 -13653 2841 3871 0 -90 281

152 -13706 3029 3841 0 -90 746

153 -14092 2924 3842 0 -90 1062

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116A -13249 6675 4624 0 -90 1350

143A -15186 5531 4213 0 -90 938

155-6 -13425 3516 3935 0 -90 646

16-X -11393 8826 4415 0 -90 383

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27A -14211 3702 3844 0 -90 1221

52-6 -11166 6627 4356 0 -90 1135

53-6 -10973 6680 4358 0 -90 1205

71-6 -11990 6609 4357 0 -90 870

85-6 -13890 6089 4512 0 -90 1354

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A08-1 -17535 1240 3897 0 -90 72



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AD-001 -8775 6282 4370 0 -90 640

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AD-017 -12839 5930 3455 0 -90 540

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AD-018B -12999 6579 3374 0 -90 730

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AD-028 -13831 5273 3449 0 -90 910

AD-029 -13990 5570 3452 0 -90 700

AD-030 -14064 6039 3286 0 -90 130

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AD-054 -13009 4812 4000 0 -90 1050

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AD-061 -14714 5189 3138 0 -90 650

AD-062 -14519 4500 3140 0 -90 550

AD-063 -14916 5300 3139 0 -90 750

AD-064 -15128 5296 3099 0 -90 710



AD-065 -14976 4765 3096 0 -90 750

AD-103 -15813 3662 3894 0 -90 720

AD-105 -15774 4131 3778 0 -90 600

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AD-108 -16251 5027 3772 0 -90 800

AD-109 -16023 5611 3686 0 -90 900

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AH04T1211P -16499 1958 3914 0 -90 80

AH04T1213P -19921 3442 3850 0 -90 63

AH04T3-15P -21674 7075 3716 0 -90 160

AH04T3-17P -22410 7952 3718 0 -90 220

APP-4 -24605 9869 3256 0 -90 153

APP-5A -19721 -15 3468 0 -90 35

APP-5B -19712 -18 3472 0 -90 200

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B08-01 -15801 2259 3989 0 -90 99

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B08-08 -16318 9520 4193 0 -90 180

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B08-10 -18673 5065 3880 0 -90 6

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B08-12 -15960 1885 3910 0 -90 14

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B08-20 -18403 1809 3897 0 -90 99

B08-21 -19029 4933 3897 0 -90 59

B08-22 -19774 4861 3888 0 -90 59



BMW-07 -20038 7519 3417 0 -90 49

CC-AMW-12 -16678 4437 3603 0 -90 19

CC-AMW-13 -19657 -1861 3471 0 -90 25

CC-AMW-14 -19606 -1069 3465 0 -90 28

CC-BMW-02 -20705 -1900 3703 0 -90 300

CC-BMW-05 -19644 -1838 3471 0 -90 185

CC-MW-02 -20700 -1750 3703 0 -90 300

CDX-02 -7200 8880 4650 0 -90 2852

CDX-03 -7777 3856 4540 0 -90 1110

CDX-04 -16990 755 3770 0 -90 632

CDX-05 -12539 9399 4192 0 -90 1065

CDX-06 -18321 7900 3497 0 -90 1139

CDX-07 -17906 7552 3520 0 -90 970

CDX-08 -20259 6047 3618 0 -90 200

CDX-09 -14788 2270 3861 0 -90 393

CDX-10 -19100 8000 3440 0 -90 138

CDX-11 -18935 7842 3475 0 -90 1135

CDX-13 -13853 3663 3868 0 -90 1100

COWBOY01 -10000 2250 4725 0 -90 231

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COWBOY06 -9726 5977 4271 0 -90 440

COWBOY07 -9565 6046 4276 0 -90 460

COWBOY08 -8877 6350 4395 0 -90 540

COWBOY09 -9037 6373 4390 0 -90 21

COWBOY10 -7753 3042 4538 0 -90 460

COWBOY11 -7358 625 4615 0 -90 410

COWBOY12 -7532 922 4625 0 -90 510

DH04T1207P -18643 231 3756 0 -90 180

DH04T1209P -18641 890 3842 0 -90 289

DH04T1210P -17779 1484 3893 0 -90 225

DH04T1214P -19561 4426 3896 0 -90 276

DH08-10 -18679 5114 3878 0 -90 300

DH08-11 -17685 2756 3908 0 -90 300

DH08-12 -15977 1848 3909 0 -90 299

DH08-31 -13788 1800 4139 0 -90 301

DOMESTIC1 -17790 -469 3615 0 -90 300

DOMESTIC3 -12505 -205 4260 0 -90 420

DOMESTIC3A -12500 -200 4260 0 -90 485

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DOMESTIC5 -18450 -500 3687 0 -90 520

DOMESTIC6 -7200 4500 4753 0 -90 640

DW-08-02 -16620 6226 3870 0 -90 1338

DW-1 -11868 5671 3865 0 -90 200

DW-2 -12055 6241 3866 0 -90 200

DW-3 -9472 5579 4241 0 -90 840

DW-4 -15268 4465 3770 0 -90 160

E-01 -13852 5070 4130 0 -90 430

E-02 -13654 5119 4130 0 -90 480

E-03 -13944 4359 4079 0 -90 600

E-04 -9545 5491 4178 0 -90 600

E-05 -14434 4070 4005 0 -90 800

E-06 -14825 4256 3995 0 -90 411

E-07 -15207 5968 4085 350 -60 628

E-08 -15180 6140 4085 325 -60 434

E-09 -11917 5878 4040 0 -90 379

E-10 -12098 5793 4040 0 -90 200

E-11 -14425 5614 3995 0 -90 500

E-12 -12328 5700 4040 0 -90 200

E-13 -12559 5619 4040 0 -90 250

E-14 -13228 8180 4337 0 -90 1091

E-15 -14141 5800 3951 0 -90 1092

E-16 -14940 4507 3924 0 -90 952

E-17 -14047 5394 3907 0 -90 300

E-18 -14345 5274 3907 0 -90 300

E-19 -14732 5197 3907 0 -90 900

E-20 -14034 6295 4133 335 -60 566

E-21 -14650 4225 4001 0 -90 1692

E-22 -14790 3980 4002 0 -90 1900

E-23 -15873 4925 3743 0 -90 1412

E-24 -15035 4120 3961 0 -90 1711

E-25 -15984 5310 3776 0 -90 1684

E-26 -15208 4058 3968 0 -90 769

E-27 -14870 5000 3860 0 -90 1659

E-28 -14760 4610 3910 0 -90 1620

E-29 -15630 4370 3884 0 -90 1760

E2F -11360 5760 4181 0 -90 140

E-30 -14282 4383 4003 0 -90 1617

E-31 -13970 3990 4003 0 -90 1635

E-32 -14685 3590 3842 0 -90 1565



E-33 -13817 7179 4226 0 -90 813

E-34 -15256 4887 3817 0 -90 1605

E-35 -12600 5820 3998 0 -90 1017

E-36 -13563 4040 4002 0 -90 1265

E-37 -13435 7346 4227 0 -90 1033

E-38 -15514 5851 3954 0 -90 1450

E-39 -14132 6855 4091 0 -90 1000

E-40 -13744 6963 4089 0 -90 1080

E-41 -13026 7366 4231 0 -90 986

E-42 -12585 7276 4178 0 -90 1249

E-43 -15128 5963 3907 0 -90 1512

E-44 -13936 6911 4102 0 -90 400

E-45 -14539 3033 3855 0 -90 1375

E-46 -15236 6340 3996 0 -90 1310

E-47 -15356 5273 3775 0 -90 1421

E-48 -14781 5429 3776 117 -87 1500

E-49 -13588 3277 3839 0 -90 734

E-50 -11460 6316 4001 0 -90 435

E-51 -14332 5338 3607 0 -90 992

E-52 -14450 5742 3422 0 -90 974

E-53 -13214 6529 3423 0 -90 514

E-54 -15003 3722 3724 0 -90 279

E-55 -14988 3622 3723 0 -90 714

E-56 -14160 4883 3751 0 -90 1102

E-57 -15311 3565 3869 0 -90 248

E-58 -15278 3522 3866 0 -90 908

E-59 -15388 3850 3822 0 -90 214

E-59A -15388 3850 3822 0 -90 105

E-60 -15125 3333 3818 0 -90 514

E-61 -15354 3705 3831 0 -90 605

EAST30 -9168 6098 4415 0 -90 144

G-01 -14380 2190 4008 0 -90 402

G-03 -14815 2335 4004 0 -90 324

G-04 -14034 2243 4004 0 -90 291

GG-80-P7A -18626 8005 3528 0 -90 25

GG-80-P7B -18626 8005 3528 0 -90 47

GG-80-P8A -18555 7730 3527 0 -90 40

GG-80-P8B -18555 7730 3527 0 -90 75

GTI-MW-1 -14146 -879 3942 0 -90 199

GTI-MW-2 -14373 -554 3892 0 -90 98



GTI-MW-3 -15374 126 3879 0 -90 79

GTI-MW-4 -15467 -1022 3886 0 -90 79

GTI-MW-5 -14518 139 3947 0 -90 100

GTI-MW-6 -14935 -1529 3896 0 -90 90

GTI-MW-7 -15300 -600 3884 0 -90 62

GTI-MW-8 -15087 -665 3887 0 -90 101

HORIZWELL1 -14305 3161 3538 135 0 400

HORIZWELL2 -14874 4322 3168 247 0 400

HORIZWELL3 -14906 4646 3168 245 0 400

HORIZWELL4 -14038 3156 3468 136 0 400

HORIZWELL5 -13238 5895 3297 153 0 400

HW-07-01 -15455 3379 3550 235 0 180

HW-07-02 -15406 3262 3550 223 0 240

HW-07-03 -15294 3173 3550 203 0 410

HW-07-04 -15169 3074 3550 199 0 490

HW-07-05 -15054 3028 3550 203 0 420

HW-07-06 -15032 3028 3550 180 0 390

HW-07-07 -15022 3030 3550 140 0 210

HW-07-08 -14070 3214 3440 228 0 370

HW-07-09 -14054 3213 3440 213 0 400

HW-07-10 -14044 3212 3440 200 0 250

HW-07-11 -14037 3209 3440 183 0 400

JH-1 -9208 7719 4855 0 -90 350

JH-2 -9208 7477 4870 0 -90 60

JH-3 -8990 7416 4957 0 -90 400

JH-3(DOM) -10427 8642 4553 0 -90 588

JH-4 -9200 7400 4870 0 -90 360

JH-5 -9530 7685 4690 0 -90 75

JH-6 -9530 7680 4690 0 -90 460

JH-7 -9000 7800 4000 0 -90 360

JH-8 -9300 7730 4825 0 -90 500

JM-1 -9339 6745 4495 0 -90 234

JM-2 -9154 6977 4642 0 -90 155

JM-3 -9220 6980 4647 0 -90 189

MILLERSPR1 -15931 -303 3809 0 -90 1150

MILLSITE-1 -13597 -505 4038 0 -90 1450

MILLSITE-2 -14010 221 4027 0 -90 1640

MILLSITE-3 -14934 -703 3886 0 -90 1881

MW-04-03 -17545 -584 3582 0 -90 90

MW-04-04 -20089 1038 3484 0 -90 153



MW-04-05 -16808 3297 3976 0 -90 210

MW-04-06 -20974 4136 3883 0 -90 100

MW-04-07 -18056 5309 4004 0 -90 400

MW-04-09 -19851 8476 3442 0 -90 400

MW-04-13 -17566 7453 4035 0 -90 513

NO.1 -17300 556 3750 0 -90 100

NO.2 -17400 475 3750 0 -90 100

NO.3 -17500 350 3740 0 -90 105

NO.4 -17600 275 3750 0 -90 100

NO.5 -17700 206 3750 0 -90 100

NO.6 -17750 350 3760 0 -90 100

NO.7 -17650 475 3760 0 -90 100

NO.8 -17600 500 3770 0 -90 49

NORTHEA28A -11338 7954 4358 0 -90 600

NORTHEA28B -11421 7973 4358 0 -90 800

NORTHEAS26 -12509 8172 4352 0 -90 800

NORTHEAS27 -11856 8021 4344 0 -90 800

NORTHEAS29 -11041 7829 4359 0 -90 110

NORTHWES23 -16145 6630 3866 0 -90 800

NORTHWES24 -15536 7044 4043 0 -90 805

NORTHWES25 -14390 7585 4218 0 -90 800

NORTHWES31 -15975 6824 3904 0 -90 1000

NR-1 -15609 6207 3547 0 -90 600

NR-2 -14880 6724 3699 0 -90 640

NR-3 -14544 6811 3668 0 -90 550

P11-93 -20912 7792 3724 0 -90 100

P12 -22708 8209 3736 0 -90 100

P13-93 -20871 7757 3722 0 -90 100

PEAK-27 -15950 1650 3903 0 -90 1590

PEAK-29 -23890 9425 3299 0 -90 950

PEAK-36 -20802 5442 3883 0 -90 1000

PEAK-37 -20416 1089 3475 0 -90 775

PZ-08-01 -16040 2393 3990 0 -90 1200

PZ-08-02 -14351 1763 4101 0 -90 1301

PZ-08-03 -15273 3327 3500 0 -90 1500

PZ-08-04 -16404 4334 3840 0 -90 1210

PZ-08-05 -16895 5459 3786 0 -90 1100

PZ-08-06 -18237 6280 4038 0 -90 1410

PZ-08-06A -18256 6291 4038 0 -90 1250

PZ-08-07 -13479 5881 3275 0 -90 617



PZ-08-08 -14820 8630 4192 0 -90 1517

PZ-08-09 -11296 5020 4090 0 -90 1440

PZ-08-10 -8239 6889 4543 0 -90 560

PZ-08-10A -10045 8204 4555 0 -90 1617

PZ-08-11 -20349 9693 3376 0 -90 1017

PZ-08-13 -18671 5067 3879 0 -90 1520

PZ-08-14 -17773 2825 3906 0 -90 1520

PZ-08-15 -16002 1911 3909 0 -90 1500

PZ-08-16 -15686 5264 3319 0 -90 520

R-01 -13479 5990 4510 0 -90 640

R-02 -13095 6100 4510 0 -90 530

R-03 -9915 5948 4416 0 -90 590

R-04 -9986 6116 4396 0 -90 715

R-05 -10581 6015 4328 0 -90 600

R-06 -13145 6140 4508 0 -90 700

R-07 -10290 5871 4344 0 -90 250

R-08 -10929 6513 4399 0 -90 500

R-09 -9849 6165 4349 0 -90 450

R-10 -9421 6268 4405 0 -90 400

R-11 -9171 6108 4418 0 -90 300

R-12 -9753 5987 4355 0 -90 200

R-13 -11350 5748 4133 0 -90 200

R-14 -11264 5568 4131 0 -90 330

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T1-AH94-02 -19330 -50 3485 0 -90 23

T1-AH94-03 -19550 1910 3795 0 -90 12

T1-AH94-08 -18590 635 3851 0 -90 152

T1-AH94-09 -18593 665 3848 0 -90 248

T1-AH94-10 -17722 773 3854 0 -90 152

T1-AH94-11 -18953 256 3674 0 -90 122

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T1-AH94-14 -17710 1715 3850 0 -90 27

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T1-B80-8 -17320 533 3732 0 -90 47

T1-B80-9 -17633 451 3785 0 -90 84

T1-I-01 -18722 825 3845 0 -90 248



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T1-I-04 -19482 2570 3853 0 -90 132

T1-P01 -19002 3460 3902 0 -90 170

T1-P02 -19155 3609 3898 0 -90 183

T1-P03 -19345 3699 3895 0 -90 220

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T1-P07 -18515 1016 3894 0 -90 220

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T1-PP1 -17768 708 3760 0 -90 75

T1-PP2 -17605 552 3799 0 -90 149

T1-PP3 -18678 780 3848 0 -90 149

T1-PP4 -19036 353 3669 0 -90 120

T1-PP7 -19482 2551 3853 0 -90 97

T2.5-09 -20682 8183 3606 0 -90 110

T2.5-11 -20784 7833 3695 0 -90 156

T2.5-12 -21118 7535 3721 0 -90 220

T2.5-85-5 -20746 8667 3545 0 -90 61

T2.5-B80-1 -20227 8204 3523 0 -90 81

T2.5-B80-2 -20379 8246 3523 0 -90 73

T2.5-B80-3 -20195 8265 3501 0 -90 53

T2.5-B80-4 -20073 8447 3409 0 -90 10

T2.5-I-13 -20776 7808 3696 0 -90 225

T2.5-P5-93 -20308 8389 3504 0 -90 42

T2.5-P6-93 -20429 8168 3564 0 -90 135

T2.5-P7-93 -20608 7972 3617 0 -90 171

T2.5-P8-93 -20750 7870 3688 0 -90 70

T2.5-P9-93 -19896 7692 3692 0 -90 190

T2-80-P2 -20036 6357 3619 0 -90 59

T2-80-P3 -19870 6019 3781 0 -90 192

T2-AH94-04 -19694 5457 3854 0 -90 252

T2-AH94-05 -19957 5945 3787 0 -90 42

T2-AH9405A -19950 5975 3775 0 -90 100

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T2-B-1 -19514 5356 3851 0 -90 241

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T2-P9 -19441 4941 3896 0 -90 271



T2-PP5 -19984 5917 3782 0 -90 100

T2-PP6 -19832 5478 3853 0 -90 100

T3-10 -22833 8391 3695 0 -90 182

T3-13 -23161 8834 3510 0 -90 150

T3-14 -22999 8615 3601 0 -90 200

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T3-80-P4 -22572 9351 3472 0 -90 120

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T3-80-P6 -23338 8874 3473 0 -90 109

T3-85-4 -22756 9032 3546 0 -90 80

T3-I-12 -22798 8411 3694 0 -90 280

T3-P1-93 -23354 9224 3349 0 -90 40

T3-P2-93 -23286 9086 3413 0 -90 100

T3-P3-93 -23073 8714 3570 0 -90 220

T3-P4-93 -22847 8418 3689 0 -90 80

UNKNOEXPL1 -13025 4800 3950 0 -90 500

UNKNOEXPL2 -10770 5610 4085 0 -90 500

UNKNOEXPL3 -9830 5680 4225 0 -90 100

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W22F -13682 5213 4175 0 -90 90

W22H -13735 5406 4220 0 -90 135

W23C -13700 4897 4175 0 -90 90

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W23G -13805 5283 4220 0 -90 90

W24C -13796 4871 4175 0 -90 90

W2D -11700 5548 4178 0 -90 138

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W6D -12086 5442 4174 0 -90 134



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WEST12 -15560 3370 3903 0 -90 800

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WW-1 -15825 4964 3645 75 -55 1220

WW-2 -16028 5490 3696 75 -55 620

WW-3 -16045 5484 3695 75 -55 790

G-2 -14816 3303 3513 65 -65 916

G-5 -15179 3677 3547 62 -65 903

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DDH-10-3 -8588 8153 4599 320 -90 4500

DDH-10-4 -19108 1487 3856 335 -73 5865

DDH-10-5 -16137 4604 3632 102 -77 2481

DDH-10-6 -15493 4166 3433 231 -54 1076

DDH-10-7 -11263 5057 4090 92 -89 2112



DDH-10-8 -12581 4635 4040 255 -89 2108

DDH-10-9 -10160 5736 4174 322 -90 2002

DDH-11-11 -12434 6617 3318 172 -60 2471

DDH-11-12 -15655 6037 3319 351 -51 1674

DDH-11-13 -14951 5801 3188 292 -90 2920

DDH-11-14 -14701 7512 4210 165 -59 3491

DDH-11-15 -13865 7902 4261 164 -64 3308

DDH-11-16 -15109 15192 3875 262 -89 2229

DDH-11-17 -14970 3970 3320 246 -66 1566

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DDH-11-19 -16714 6330 3906 67 -89 3049

DDH-11-20 -12478 6649 3319 234 -90 3386

DDH-11-21 -17107 3811 3950 242 -81 5287

DDH-11-22 -13727 5766 3250 207 -90 2909

DDH-11-23 -14089 4785 3274 312 -90 2005

DDH-11-24 -15664 5178 3320 259 -74 2214

DDH-11-25 -11578 5941 3778 228 -90 2012

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DDH-11-27 -9970 5230 4203 325 -60 2437

DDH-11-28A -13160 3766 3779 340 -60 1816

DDH-11-29 -12859 8217 4313 159 -68 2524

DDH-11-30 -9894 6749 4378 355 -90 2549

DDH-11-31 -11706 8258 4403 177 -61 3010

DDH-11-32 -11847 4492 4062 341 -61 2206

DDH-11-33 -10596 7884 4512 153 -89 1862

DDH-11-34 -14986 3923 3320 144 -90 1666

DDH-11-35 -15387 4643 3320 19 -89 1655

DDH-11-36 -15843 5555 3320 72 -89 1584

DDH-11-37 -15265 4272 3320 305 -90 1584

DDH-11-38 -15096 4319 3322 216 -90 1526

DDH-11-39 -15200 4592 3321 141 -90 1746

DDH-11-40 -15716 5574 3318 298 -89 1680

DDH-11-41 -14511 4488 3141 44 -89 1200

DDH-11-42 -15554 5351 3280 53 -90 1746

DDH-11-43 -14420 4873 3190 60 -89 1456

DDH-11-44 -15498 5027 3303 229 -89 1696

DDH-11-45 -14097 4335 3315 148 -89 1206

DDH-11-46 -14638 5669 3187 5 -89 1805

DDH-11-47 -13425 5904 3280 318 -90 1456

DDH-11-48 -13246 5956 3298 355 -89 1597



DDH-11-49 -14691 5934 3173 261 -90 1676

DDH-11-50 -13051 6042 3319 296 -90 1614

DDH-12-102 -11320 5942 3781 178 -90 636

DDH-12-105 -11593 5977 3777 344 -70 676

DDH-12-109 -13096 5042 3911 347 -73 840

DDH-12-111 -11303 5608 3958 343 -59 676

DDH-12-113 -11302 5604 3958 156 -90 600

DDH-12-114 -11548 5420 3984 347 -66 776

DDH-12-115 -12956 4841 4001 142 -90 686

DDH-12-118 -12308 5259 3999 350 -60 906

DDH-12-120 -12307 5254 3999 118 -90 856

DDH-12-122 -12503 5044 4007 83 -89 715

DDH-12-123 -13280 5482 3594 317 -73 614

DDH-12-124 -13383 5367 3604 167 -89 803

DDH-12-125 -13278 5479 3594 229 -90 736

DDH-12-126 -13385 5369 3604 315 -74 933

DDH-12-127 -13090 5576 3576 320 -74 716

DDH-12-128 -12005 6301 3448 4 -90 456

DDH-12-129 -13089 5575 3576 185 -89 764

DDH-12-130 -13489 5192 3622 313 -74 703

DDH-12-131 -12312 6030 3482 241 -89 596

DDH-12-132 -13131 5547 3576 317 -89 646

DDH-12-133 -13294 5430 3595 18 -89 606

DDH-12-134 -12116 6170 3462 235 -89 486

DDH-12-135 -13133 5549 3576 314 -73 606

DDH-12-136 -11698 6475 3412 341 -70 377

DDH-12-139 -12940 5630 3558 103 -89 626

DDH-12-140 -12859 5681 3550 68 -89 755

DDH-12-145 -12587 5864 3518 172 -90 618

DDH-12-146 -13473 4155 3733 241 -89 706

DDH-12-147 -12407 5978 3496 179 -89 466

DDH-12-148 -13475 4153 3733 230 -64 824

DDH-12-149 -12008 6904 3370 27 -74 506

DDH-12-150 -13159 3951 3760 45 -89 517

DDH-12-153 -13260 3948 3759 19 -89 720

DDH-12-154 -9589 6149 4280 94 -90 866

DDH-12-155 -13167 3928 3761 234 -75 504

DDH-12-157 -13223 4369 3913 2 -89 635

DDH-12-158 -13230 3960 3759 231 -70 637

DDH-12-160 -13144 4303 3914 67 -90 501



DDH-12-161 -9849 6361 4293 131 -89 852

DDH-12-162 -10278 7117 4341 229 -59 843

DDH-12-165 -13556 5337 3595 51 -89 630

DDH-12-166 -13878 3786 3367 207 -89 750

DDH-12-167 -13988 4043 3339 348 -90 590

DDH-12-168 -14033 4115 3337 264 -90 800

DDH-12-169 -13956 3944 3346 109 -89 800

DDH-12-51 -12678 6181 3355 41 -89 1756

DDH-12-52 -13826 3602 3381 219 -89 1196

DDH-12-53 -14182 5213 3236 301 -90 1802

DDH-12-54 -12490 6248 3373 338 -90 1756

DDH-12-55 -12195 6433 3364 2 -90 1666

DDH-12-56 -11943 6403 3438 299 -90 1906

DDH-12-58 -12293 6096 3479 120 -90 1754

DDH-12-59 -12229 6741 3324 336 -60 1866

DDH-12-60 -12230 6675 3322 143 -90 1707

DDH-12-61 -12643 5842 3522 172 -90 1726

DDH-12-62 -11510 6613 3400 76 -90 1866

DDH-12-63 -13581 4735 3673 34 -90 1276

DDH-12-64 -22900 10176 3344 242 -89 3167

DDH-12-65 -14390 5574 3196 61 -89 1726

DDH-12-67 -15724 5200 3321 239 -89 1588

DDH-12-68 -13363 4059 3738 18 -89 1212

DDH-12-69 -15262 3378 3500 271 -90 1484

DDH-12-96 -12905 5142 3910 342 -61 864

DDH-12-99 -12698 5229 3912 344 -59 821

G-02 -14816 3303 3513 65 -65 916

G-05 -15179 3677 3547 62 -65 903

G-05A -15179 3677 3547 62 -65 153

G-06 -15272 3625 3547 249 -60 500

G-07 -15770 4500 3548 62 -60 998

G-08 -15879 5536 3548 97 -89 800

G-09 -16049 5531 3548 89 -65 406

G-10 -13999 3301 3424 245 -46 881

capstone mining corp. · capstone mining corp. ni 43-101 technical report pinto valley property...

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