technical report on the batero-quinchia project, department of risaralda,...

February 24, 2012

Amended on April 19, 2012

ROSCOE POSTLE ASSOCIATES INC.

BATERO GOLD CORPORATION

TECHNICAL REPORT ON THEBATERO-QUINCHIA PROJECT,DEPARTMENT OF RISARALDA,COLOMBIA

NI 43-101 Report

Qualified Persons:Paul Chamois, M.Sc.(Applied), P.Geo.Luke Evans, M.Sc., P.Eng.

Report Control Form Document Title Technical Report on the Batero-Quinchia Project, Department

of Risaralda, Colombia

Client Name & Address

Batero Gold Corp. 3703-1011 W. Cordova St., Vancouver, B.C. V6C 0B2

Document Reference

Project # 1621

Status & Issue No.

Final Version

Issue Date February 24, 2012, Amended April 19, 2012

Lead Author Paul Chamois

Luke Evans

(Signed) (Signed)

Peer Reviewer Deborah McCombe

Dave Ross

(Signed) (Signed)

Project Manager Approval Luke Evans

(Signed)

Project Director Approval Wayne Valliant

(Signed)

Report Distribution Name No. of Copies Client RPA Filing 1 (project box)

Roscoe Postle Associates Inc.

55 University Avenue, Suite 501 Toronto, Ontario M5J 2H7

Canada Tel: +1 416 947 0907

Fax: +1 416 947 0395 [email protected]

mailto:[email protected]�

www.rpacan.com

Batero Gold Corp. – Batero-Quinchia Project, Project # 1621

Technical Report NI 43-101 – Amended April 19, 2012

Rev. 0 Page i

TABLE OF CONTENTS PAGE

1 SUMMARY ................................................................................................................ 1-1 Executive Summary ................................................................................................ 1-1 Technical Summary ................................................................................................ 1-7

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

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

4 PROPERTY DESCRIPTION AND LOCATION .......................................................... 4-1 Royalties and Other Encumbrances ....................................................................... 4-4 Permitting ............................................................................................................... 4-5

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

6 HISTORY .................................................................................................................. 6-1 Prior Ownership ...................................................................................................... 6-1 Exploration History ................................................................................................. 6-1 Historical Metallurgical Testing ............................................................................... 6-5

7 GEOLOGICAL SETTING AND MINERALIZATION ................................................... 7-1 Regional Geology ................................................................................................... 7-1 Project Geology ...................................................................................................... 7-2 Mineralization ......................................................................................................... 7-9

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

9 EXPLORATION ......................................................................................................... 9-1 Exploration Potential ............................................................................................... 9-8

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

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

12 DATA VERIFICATION ........................................................................................... 12-1 Independent Assay of Drill Core ........................................................................... 12-1 Database Verification ........................................................................................... 12-2 Quality Assurance and Quality Control ................................................................. 12-4

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

14 MINERAL RESOURCE ESTIMATE ....................................................................... 14-1 Summary .............................................................................................................. 14-1 Database .............................................................................................................. 14-1 Geological Interpretation....................................................................................... 14-6 Assay Statistics .................................................................................................. 14-12 Capping of High Grade Assays ........................................................................... 14-14 Compositing ....................................................................................................... 14-15 Density ............................................................................................................... 14-18

www.rpacan.com



Rev. 0 Page ii

Copper and Gold Grade Trend Analysis ............................................................. 14-20 Variography ........................................................................................................ 14-23 Block Model ........................................................................................................ 14-26 Grade Interpolation ............................................................................................. 14-27 Cut-off Grade and Whittle Shell .......................................................................... 14-28 Block Model Validation ....................................................................................... 14-29 Sensitivity to Cut-off Grade ................................................................................. 14-34 Resource Classification ...................................................................................... 14-37 Resource Estimate ............................................................................................. 14-40 Redox Model ...................................................................................................... 14-42 Summary of Recommendations .......................................................................... 14-46

15 MINERAL RESERVE ESTIMATE .......................................................................... 15-1

16 MINING METHODS .............................................................................................. 16-1

17 RECOVERY METHODS ....................................................................................... 17-1

18 PROJECT INFRASTRUCTURE ............................................................................ 18-1

19 MARKET STUDIES AND CONTRACTS................................................................ 19-1

20 ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT ..................................................................................................................... 20-1

21 CAPITAL AND OPERATING COSTS .................................................................... 21-1

22 ECONOMIC ANALYSIS ........................................................................................ 22-1

23 ADJACENT PROPERTIES ................................................................................... 23-1

24 OTHER RELEVANT DATA AND INFORMATION ................................................. 24-1

25 INTERPRETATION AND CONCLUSIONS ............................................................ 25-1

26 RECOMMENDATIONS ......................................................................................... 26-1

27 REFERENCES ...................................................................................................... 27-1

28 DATE AND SIGNATURE PAGE ............................................................................ 28-1

29 CERTIFICATE OF QUALIFIED PERSON ............................................................. 29-1

30 APPENDIX 1 ......................................................................................................... 30-1 Batero Drilling Data .............................................................................................. 30-1

31 APPENDIX 2 ......................................................................................................... 31-1 Batero Significant Drilling Results ......................................................................... 31-1

32 APPENDIX 3 ......................................................................................................... 32-1 Certificate of Analysis ........................................................................................... 32-1

www.rpacan.com



Rev. 0 Page iii

LIST OF TABLES PAGE

Table 1-1 Mineral Resource Estimate - January 11, 2012 .......................................... 1-2 Table 1-2 Proposed Budgets ...................................................................................... 1-6 Table 4-1 Quinchia Property Description .................................................................... 4-1 Table 5-1 Climatic Data - Pereira/Matecana ............................................................... 5-2 Table 6-1 Anglogold Ashanti (KEDAHDA) Diamond Drilling ....................................... 6-3 Table 6-2 Anglogold Ashanti (KEDAHDA) Significant Results .................................... 6-4 Table 12-1 Independent Assays of Drill Core ........................................................... 12-2 Table 12-2 QA/QC Summary ................................................................................... 12-5 Table 12-3 Blank Summary Results ......................................................................... 12-5 Table 12-4 Summary Statistics for Gold Duplicates ................................................ 12-11 Table 12-5 Expected Values and Ranges of CRMs ................................................ 12-12 Table 12-6 Summary of the CRM Results For Gold ................................................ 12-12 Table 12-7 Summary of the CRM Results for Copper .............................................. 12-13 Table 13-1 Summary Cyanide Leach Test Results ................................................... 13-2 Table 13-2 Metallurgical Sample Location & description .......................................... 13-3 Table 13-3 Metallurgical Sample Assays .................................................................. 13-5 Table 14-1 Mineral Resource Estimate - January 11, 2012 ...................................... 14-1 Table 14-2 Gemcom Database Structure ................................................................. 14-2 Table 14-3 Drill Hole Database Records .................................................................. 14-3 Table 14-4 Assay Statistics by Simplified Geology ................................................... 14-6 Table 14-5 Resource Assay Statistics - Gold .......................................................... 14-12 Table 14-6 Resource Assay Statistics - Copper ..................................................... 14-12 Table 14-7 Capping Levels ..................................................................................... 14-15 Table 14-8 Statistics of Gold Composites ............................................................... 14-16 Table 14-9 Statistics of Copper Composites ........................................................... 14-16 Table 14-10 Density Statistics for Tests Without Paraffin ....................................... 14-19 Table 14-11 Density Statistics for Tests With Paraffin ............................................ 14-19 Table 14-12 Block Model Dimensions .................................................................... 14-26 Table 14-13 Block Model Tonnage Factors ............................................................ 14-27 Table 14-14 Block Model Field Descriptions ........................................................... 14-27 Table 14-15 Interpolation Parameter Summary ...................................................... 14-28 Table 14-16 Cut-off Grade and Whittle Assumptions .............................................. 14-29 Table 14-17 Assay, Composite, and Block Model Gold Statistics ........................... 14-32 Table 14-18 Mineralization Tonnage Grade Curve Data ......................................... 14-35 Table 14-19 Mineral Resource Estimate Details- January 25, 2012 ....................... 14-40 Table 14-20 Blocks Above 0.3 g/t Gold .................................................................. 14-41 Table 14-21 Blocks Above 0.5 g/t Gold .................................................................. 14-42 Table 14-22 Oxide and Sulphide Resource Estimate DEtails ................................. 14-45 Table 26-1 Proposed Budget - Phase I ..................................................................... 26-2 Table 26-2 Proposed Budget - Phase II .................................................................... 26-3

www.rpacan.com



Rev. 0 Page iv

LIST OF FIGURES PAGE

Figure 4-1 Location Map............................................................................................. 4-6 Figure 4-2 Property Map............................................................................................. 4-7 Figure 7-1 Regional Geology ...................................................................................... 7-7 Figure 7-2 Project Geology ......................................................................................... 7-8 Figure 7-3 Cross Section 585,300N ......................................................................... 7-12 Figure 7-4 Cross Section 586,650N ......................................................................... 7-13 Figure 8-1 Schematic Diagram through Typical Porphyry System .............................. 8-3 Figure 9-1 Results of Copper in Soil Samples ............................................................ 9-3 Figure 9-2 Results of Gold in Soil Samples ................................................................ 9-4 Figure 9-3 Magnetic Survey Results ........................................................................... 9-6 Figure 9-4 Location of Tunnels ................................................................................... 9-7 Figure 9-5 La Cumbre Target Showing Untested Anomaly to South of Current Drilling ... ................................................................................................................................... 9-10 Figure 9-6 Exploration Targets ................................................................................. 9-11 Figure 10-1 Drill Hole Locations ............................................................................... 10-3 Figure 11-1 Core Sample Protocol 2010/2011 .......................................................... 11-3 Figure 11-2 Sample Preparation and Analysis Protocols .......................................... 11-4 Figure 12-1 Blanks – Gold Results ........................................................................... 12-6 Figure 12-2 Blanks – Copper Results ....................................................................... 12-6 Figure 12-3 Field Duplicates Gold Scatter Plot ......................................................... 12-8 Figure 12-4 Field Duplicates Gold Q-Q Plot .............................................................. 12-8 Figure 12-5 Reject Duplicates Gold Scatter Plot ....................................................... 12-9 Figure 12-6 Reject Duplicates Gold Q-Q Plot ........................................................... 12-9 Figure 12-7 Pulp Duplicates Gold Scatter Plot ........................................................ 12-10 Figure 12-8 Pulp Duplicates Q-Q Plot ..................................................................... 12-10 Figure 12-9 Precision Curves for Gold Duplicates .................................................. 12-11 Figure 12-10 CRM CDN-CM-7 – Gold .................................................................... 12-14 Figure 12-11 CRM CDN-CM-7 – Copper ................................................................ 12-14 Figure 12-12 CRM CDN-CM-6 – Gold .................................................................... 12-15 Figure 12-13 CRM CDN-CM-6 – Copper ................................................................ 12-15 Figure 12-14 CRM CDN-CGS-24 – Gold ................................................................ 12-16 Figure 12-15 CRM CDN-CGS-24 – Copper ............................................................ 12-16 Figure 12-16 CRM CDN-CGS-23 – Gold ................................................................ 12-17 Figure 12-17 CRM CDN-CGS-23 – Copper ............................................................ 12-17 Figure 12-18 CRM CDN-CM 8 – Gold .................................................................... 12-18 Figure 12-19 CRM CDN-CM 8 – Copper ................................................................ 12-18 Figure 12-20 CRM CDN-CM 10 – Gold .................................................................. 12-19 Figure 12-21 CRM CDN-CM 10 – Copper .............................................................. 12-19 Figure 12-22 CRM CDN-CM 12 – Gold .................................................................. 12-20 Figure 12-23 CRM CDN-CM 12 – Copper .............................................................. 12-20 Figure 12-24 CRM CDN-ME 6 – Gold .................................................................... 12-21 Figure 12-25 CRM CDN-ME 6-Copper ................................................................... 12-21 Figure 12-26 CRM CDN-CGS-27 – Copper ............................................................ 12-22 Figure 12-27 CRM CDN-CM-11A – Copper............................................................ 12-22 Figure 12-28 External Check Assays - Gold ........................................................... 12-23 Figure 12-29 External Check Assays – Copper ...................................................... 12-24

www.rpacan.com



Rev. 0 Page v

Figure 13-1 Metallurgy Sample Locations ................................................................ 13-4 Figure 13-2 Overall Gold Extraction (Sulphide Samples) .......................................... 13-6 Figure 14-1 Drill Hole Plan ....................................................................................... 14-4 Figure 14-2 Drill Hole 3D View ................................................................................. 14-5 Figure 14-3 Cross Section 585275N Looking North .................................................. 14-8 Figure 14-4 Lithology Block Model – 1,575 m Bench ................................................ 14-9 Figure 14-5 Gold Wireframes ................................................................................. 14-10 Figure 14-6 Copper Wireframes ............................................................................. 14-11 Figure 14-7 Gold Resource Assay Histogram – All Areas ....................................... 14-13 Figure 14-8 Copper Resource Assay Histogram – All Areas .................................. 14-13 Figure 14-9 Gold and Copper Log Probability Plots ................................................ 14-14 Figure 14-10 Gold Composite Histogram – All Areas ............................................. 14-17 Figure 14-11 Copper Composite Histogram – All Areas ......................................... 14-17 Figure 14-12 Boxplots of Density Tests without Paraffin ......................................... 14-19 Figure 14-13 Boxplots of SG Tests with Paraffin for the Main Lithologies ............... 14-20 Figure 14-14 Planview Showing Gold Grade Shells ............................................... 14-21 Figure 14-15 Planview Showing Copper Grade Shells ........................................... 14-22 Figure 14-16 Downhole Semi-Variogram – All Gold Composites ............................ 14-23 Figure 14-17 Downhole Semi-Variogram – La Cumbre Copper Composites .......... 14-23 Figure 14-18 La Cumbre Down Dip Gold Semi-Variogram ..................................... 14-24 Figure 14-19 La Cumbre Along Strike Gold Semi-Variogram ................................. 14-24 Figure 14-20 Dos Quebradas Gold Semi-Variograms ............................................ 14-25 Figure 14-21 Gold Composites and Blocks on 1,525 m Bench ............................... 14-30 Figure 14-22 Gold Composites and Blocks on Section 5,375N............................... 14-31 Figure 14-23 Gold Composites and Blocks on Section 6,625N............................... 14-31 Figure 14-24 Swath Plot By Elevation for La Cumbre Area .................................... 14-33 Figure 14-25 Composites Versus Block Gold Grades ............................................. 14-34 Figure 14-26 Mineralization Tonnage-Grade Curves .............................................. 14-36 Figure 14-27 Block to Composite Distance Histograms – La Cumbre ..................... 14-37 Figure 14-28 Block to Composite Distance Histograms – Dos Quebradas ............. 14-38 Figure 14-29 Block to Composite Distance Histograms – El Centro ....................... 14-38 Figure 14-30 Resource Classification Block Model – 1,525 m Bench ..................... 14-39 Figure 14-31 3D View Looking Northwest – Blocks Above 0.3 g/t Gold .................. 14-41 Figure 14-32 3D View Looking Northwest – Blocks Above 0.5 g/t Gold .................. 14-42 Figure 14-33 Sulphur Grades – Section 5525N ...................................................... 14-44 Figure 14-34 Sulphur Grades – Section 5275N ...................................................... 14-44 Figure 23-1 Adjacent Properties Regionals .............................................................. 23-3 Figure 23-2 Adjacent Properties ............................................................................... 23-4

LIST OF APPENDIX FIGURES & TABLES PAGE

Table 30-1 Batero Drilling Summary ......................................................................... 30-2 Table 31-1 Batero Significant Drilling Results ........................................................... 31-2

www.rpacan.com



Rev. 0 Page 1-1

1 SUMMARY EXECUTIVE SUMMARY Roscoe Postle Associates Inc. (RPA) was retained by Brandon Rook, President and

Chief Executive Officer of Batero Gold Corp. (Batero), to prepare an independent

Technical Report on the Batero-Quinchia Project, Department of Risaralda, Colombia.

The purpose of this report is to document the technical information available on the

project and to support the initial Mineral Resource estimates for the La Cumbre, El

Centro, and Dos Quebradas Zones. This Technical Report conforms to National

Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101). RPA visited

the property from November 17 to 18, 2010.

On July 26, 2010, Batero announced that it had acquired all of the rights to the 1,407.3

ha Quinchia property in consideration for which it agreed to issue an aggregate of 6.65

million common shares, make cash payments totalling $2.2 million (of which $450,000

was paid on the closing date), and incur expenditures on the Quinchia property totalling

$5 million over four years. Batero will issue an additional two million common shares if it

prepares a NI 43-101 compliant report at any time that establishes the existence of at

least five million ounces of gold categorized as a Measured Resource, as defined in NI

43-101, at a cut-off grade of 0.7 g/t of gold or gold equivalent on the Quinchia property.

Batero also agreed to issue 525,000 common shares to an arm’s length party as a

finder’s fee.

Currently, the major asset associated with the project is a significant land package

located within a highly prospective geological environment and containing very attractive

exploration targets at the drill definition stage.

RPA estimated Mineral Resources for the Quinchia deposit using drill hole data available

as of January 11, 2012 (Table 1-1). The Mineral Resource estimate is based on a

potential open pit mining scenario. Mineral Resources are reported at a 0.16 g/t Au cut-

off grade within a $1,500/oz Au Whittle pit shell. The gold cut-off grade and Whittle shell

make no consideration for silver and copper.

www.rpacan.com



Rev. 0 Page 1-2

TABLE 1-1 MINERAL RESOURCE ESTIMATE - JANUARY 11, 2012 Batero Gold Corp. – Batero-Quinchia Project

Resource Tonnes Gold Silver Copper Contained Gold

Classification (Mt) (g/t) (g/t) (%) (000 oz) Total Indicated 248.5 0.44 1.54 0.08 3,546

Total Inferred 242.4 0.33 1.80 0.06 2,588

Notes:

1. CIM definitions were followed for Mineral Resources. 2. Mineral Resources are estimated using a gold price of US$1,500 per ounce. 3. A gold recovery factor of 80% was used based on preliminary metallurgical test work. 4. Resources are constrained by a Whittle shell and reported at a 0.16 g/t Au cut-off grade. 5. Totals may not represent the sum of the parts due to rounding.

RPA is not aware of any known environmental, permitting, legal, title, taxation, socio-

economic, marketing, political, or other relevant factors that could materially affect the

current resource estimate.

INTERPRETATION AND CONCLUSIONS The La Cumbre, El Centro, and Dos Quebradas Zones on the Batero-Quinchia property

represent significant new porphyry-related mineralization hosted by three Miocene

intrusive centres emplaced in coeval intermediate to felsic volcanics of the Miocene

Combia Formation and Cretaceous basalts of the Barroso Formation. The property is

located in the Department of Risaralda, Colombia.

The three deposits are copper-poor porphyry gold systems in which intermediate argillic

alteration locally overprints an early potassic assemblage and its associated quartz

veinlet stockwork. Gold occurs in altered dioritic intrusions and in the diorite-basalt

contact zones. The intrusions that host mineralization consist of several phases of

diorite and later andesitic dike phases exhibiting characteristic alteration zoning, possibly

as a result of telescoped porphyry and epithermal systems and progressive leaching of

gold by overprinting argillic alteration.

Porphyry-related mineralization was discovered by a subsidiary of AngloGold Ashanti

(AGA) in 2006 in the La Cumbre and Dos Quebradas areas. Since acquiring the

property, work by Batero has focussed on the La Cumbre and Dos Quebradas Zones

and has consisted of geological mapping and sampling, soil sampling, geophysical

surveys including magnetics, induced polarization and radiometrics, and diamond

www.rpacan.com



Rev. 0 Page 1-3

drilling. This work has at least partially delineated the three mineralized centres and

identified epithermal-style mineralization in proximity of the La Cumbre deposit. Eight

other exploration targets have been identified elsewhere on the property.

In early 2011, Batero initiated preliminary metallurgical testing on six drill core composite

samples to determine their response to gravity concentration, flotation, and cyanidation.

The response to cyanidation via bottle roll tests was clearly superior and yielded gold

recoveries ranging from 66% to 94%. A second phase of metallurgical testing was

completed on three of the samples representing sulphide mineralization from the

previous test work. Three batch cleaner tests were carried out as well as cyanide bottle

roll tests on the rougher and cleaner tails. A 5% to 10% increase in gold recovery using

flotation and cyanidation of the rougher and cleaner tails was achieved on a nominal 100

µm grind and a 4% increase in gold recovery was achieved on a nominal grind of 70 µm.

Batero has developed and implemented quality assurance/quality control (QA/QC)

protocols that meet current industry best practices. Batero’s protocol during the

2010/2011 drilling program included the insertion of blanks, multiple standards, and core

duplicates into the sample stream. Batero also submitted a suite of pulp duplicates to an

alternate laboratory.

The Mineral Resource estimate as presented in Table 1-1 is the initial resource estimate

for the Batero-Quinchia property. The estimation procedures will become more

sophisticated as the overall knowledge of the geological and structural controls evolves.

The gold, copper, and silver assays were composited into 10 m lengths and interpolated

into 10 m by 10 m by 10 m blocks using inverse distance squared weighting in a single

pass with a minimum of two composites and a maximum of five composites.

The search orientations, anisotropies, and radii for gold and silver at La Cumbre and Dos

Quebradas were developed from the variography results, which show well-defined

ranges up to approximately 400 m. An isotropic search with 300 m radii was applied to

areas with ambiguous variography results to interpolate the gold and silver at El Centro

and the copper at all three zones. Blocks at La Cumbre and Dos Quebradas within 50 m

of a composite were classified as Indicated and blocks within 50 m to 100 m of a

composite were classified as Inferred. All of the blocks within 100 m of a composite at

El Centro were classified as Inferred.

www.rpacan.com



Rev. 0 Page 1-4

The Batero-Quinchia property hosts porphyry gold-copper deposits with Indicated

Mineral Resources totalling 248.5 Mt grading 0.44 g/t Au, 1.54 g/t Ag, and 0.08% Cu and

Inferred Mineral Resources totalling 242.4 Mt grading 0.33 g/t Au, 1.80 g/t Ag, and

0.06% Cu. This equates to in-situ metal quantities of 3.55 Moz of gold in the Indicated

category and 2.59 Moz of gold in the Inferred category. Mineral Resources are reported

at a 0.16 g/t Au cut-off within a $1,500/oz Au Whittle pit shell. The gold cut-off grade and

Whittle shell make no consideration for silver or copper.

RECOMMENDATIONS The Batero-Quinchia property hosts significant gold-copper porphyry-style

mineralization, which merits considerably more exploration, and a substantial program is

recommended. Phase I proposed work includes:

• advancing the La Cumbre, Dos Quebradas, and El Centro mineralized zones,

and

• further evaluating the potential of the remainder of the property.

Advancing the La Cumbre, Dos Quebradas, and El Centro resource areas would consist

of:

• additional delineation and in-fill drilling,

• initial geotechnical drilling,

• additional metallurgical testing, particularly on the oxide and transition mineralization,

• environmental baseline monitoring,

• initial acid base accounting (ABA) and potential acid generating (PAG)

studies, and

• a Preliminary Economic Assessment including a resource estimation update.

A program of 10,000 m of drilling is recommended to delineate the limits of the known

mineralization and better assess grade distribution. An additional 5,000 m of drilling is

recommended to test areas of what could be walls of conceptual open pits for

geotechnical purposes. This drilling should be completed prior to initiating the

Preliminary Economic Assessment.

www.rpacan.com



Rev. 0 Page 1-5

The next stage of metallurgical testing should investigate means for improving

cyanidation recovery including pre-aeration, aeration under leach, lead nitrate addition,

and varying cyanide concentration and grind conditions. A variability test program

should be undertaken to better understand the relationship between gold and sulphur

grades with respect to gold recovery. Additional testing also should include a gold

deportment study, heap leach test work on oxide material, and an economic capital cost

analysis for two grind scenarios.

Environmental studies should include test work to determine the potential for acid

generation from both mineralized and waste material.

Recommendations with respect to further resource estimation work include building

separate structural, alteration, and redox block models as well as investigating whether a

hardness model might be required in the future. Saprolite ore and waste tonnage factors

should be better defined. A twinned hole study using triple tube core barrels or other

equipment to evaluate the reliability of the saprolite samples is warranted. Gold and

copper trend analysis, variography work, and classification criteria should be updated

when new data become available. Batero should also investigate if modelling additional

lithologies and different breccia types separately is warranted.

Follow-up drilling to better assess epithermal-style mineralization in the vicinity of the La

Cumbre deposit is recommended as is first pass drilling of exploration targets identified

elsewhere on the property.

The proposed work is estimated to take from eight to twelve months to complete and

should be initiated as soon as is practical.

Contingent upon Phase I program results, a Phase II program consisting primarily of

definition drilling, continued exploration drilling, and a Pre-feasibility Study is

recommended. Details of the recommended Phase I and Phase II programs can be

found in Table 1-2.

www.rpacan.com



Rev. 0 Page 1-6

TABLE 1-2 PROPOSED BUDGETS Batero Gold Corp. - Batero-Quinchia Project

Item C$

PHASE I Staff Cost 1,800,000 Field and Camp Workers 707,000 Contractors/Consultants 1,200,000 General Expenses 1,360,000 Drilling Infill (10,000 m @ $200/m) 2,000,000 Geotechnical (5,000 m @ $350/m) 1,750,000 Exploration (5,000 m @ $250/m) 1,250,000 Assays/Analyses 900,000 Accommodations/Camp Costs 100,000 Transportation 200,000 Infrastructure and Maintenance 250,000 Community Relations 650,000 Environmental Baseline Sampling 200,000 Permitting/Reclamation 50,000 Preliminary Economic Assessment 250,000 Metallurgical Testing 200,000 Technical Studies 350,000 Sub-Total 13,217,000 Contingency (10%) 1,321,700 PHASE I TOTAL 14,538,700

PHASE II Staff Cost 1,890,000 Field and Camp Workers 742,000 Contractors/Consultants 1,260,000 General Expenses 1,428,000 Drilling Infill (10,000 m @ $200/m) 2,000,000 Exploration (10,000 m @ $250/m) 2,500,000 Assays/Analyses 900,000 Infrastructure and Maintenance 75,000 Accommodations/Camp Costs 100,000 Transportation 200,000 Community Relations 750,000 Environmental Baseline Sampling 400,000 Permitting/Reclamation 50,000 Pre-Feasibility Study 1,250,000 Technical Studies 200,000 Sub-Total 13,745,000 Contingency (10%) 1,374,500 PHASE II TOTAL 15,119,500

www.rpacan.com



Rev. 0 Page 1-7

TECHNICAL SUMMARY PROPERTY DESCRIPTION AND LOCATION The Batero-Quinchia Project comprises three concession contracts in a contiguous block

totalling 1,407.3 ha, located within the Municipality of Quinchia, Department of Risaralda,

Colombia. The project is located on the Instituto Geográfica Augustín Codazzi (IGAC)

Planchas 186-IV-6 and 205-II-A topographic maps (1:25,000 scale), roughly within a

rectangular area extending for approximately 6.3 km in an east-west direction and 5.4

km in a north-south direction. The Universal Transverse Mercator (UTM) co-ordinates for

the approximate centre of this area are 422,500mE, 584,500mN (WGS-84, Zone 18N).

LAND TENURE On July 26, 2010, Batero announced that it had acquired all of the issued and

outstanding shares of Bahia Bonita Properties SA (Bahia). Bahia is a Panamanian

company incorporated to hold all of the issued and outstanding capital in Sociedad

Minera Quinchia S.A.S, (Minera Quinchia), a Colombian company which holds all of the

rights in the Quinchia property. As consideration for all of the outstanding shares of

Bahia, Batero issued an aggregate of 6.65 million common shares. In addition, Batero

agreed to make cash payments totalling $2.2 million (of which $450,000 was paid on the

closing date) and incur expenditures on the Quinchia property totalling $5 million over

four years. Batero also agreed to issue an additional two million common shares if it


least five million ounces of gold categorized as Measured Resource, as defined in NI 43-

101, at a cut-off grade of 0.7 g/t of gold or gold equivalent on the Quinchia property.

Batero agreed to issue 525,000 common shares to an arm’s length party as a finder’s

fee.

In accordance with Colombian law, the holder of the mining licences has a right to

access the parcel of land covered by such mining licences and may perform exploration

and exploitation work thereon, subject to indemnification for damages to the owners of

such parcel of land that may arise from such access and the activities carried on by the

holder of the mining licences.

All of the licences are currently in good standing. None of the licences have been

surveyed and RPA is not aware of any known environmental liabilities associated with

the property.

www.rpacan.com



Rev. 0 Page 1-8

SITE INFRASTRUCTURE The Batero-Quinchia Property benefits from secondary road access. Any mining

development on the project would have access to the national electrical grid. Three 230

kV high tension power lines run along the Cauca River Valley. A 132 kV sub-station at

Marmato supplies power to the surrounding area. Abundant water is available locally for

process purposes.

HISTORY The licences that comprise the Quinchia Property were initially acquired by Juan David

Uribe Hurtabo and Silvia Stella Rios Martinez in 1998. The property was optioned to

AGA in 2005. In November 2007, Caribbean Copper and Gold Corporation (Caribbean)

entered into an agreement with AGA whereby it could earn a 100% interest in the

property. Caribbean assumed AGA’s responsibilities with respect to the underlying

agreement. In 2009, Caribbean and AGA terminated the option agreement and the

property reverted to the vendors. In 2010, Batero acquired the Quinchia property

through its acquisition of all the issued and outstanding shares of Bahia, as described

under Land Tenure.

Artisanal mining has taken place in the Batero-Quinchia Project area from Pre-

Colombian to modern times. Artisanal gold production in the area was greatest during

the 1950s. Interest was renewed in the area in the late 1970s and culminated in the

1980s in the Miraflores area with the “Associacion de Mineros de Miraflores”, a local

artisanal mining cooperative.

During the 1990s, the Quinchia area drew the attention of various Canadian junior

companies, some of which acquired ground in the general area. In 1997, a subsidiary of

TVX Gold Inc., TVX Mineria de Colombia, completed a comprehensive review of the

Quinchia property but did not follow up with ground work.

In 2000, INGEOMINAS undertook a series of technical studies in the area including

geological mapping, geochemical and geophysical surveying, and prognostic (non–NI

43-101 compliant) resource estimations.

In May 2005, a subsidiary of AGA, Sociedad Kedahda S.A. (Kedahda), completed

reconnaissance sampling in selected areas within the current property. During 2006,

www.rpacan.com



Rev. 0 Page 1-9

Kedahda completed geological mapping, soil sampling, channel sampling, and a 15 hole

drilling program totalling 4,090.7 m on the Dos Quebradas, La Cumbre, and El Centro

targets. El Centro was previously known as Mandeval. In April 2008, Kedahda

completed a combined magnetometer and radiometric helicopter-borne survey over a

large area including the current Quinchia property.

GEOLOGY The Quinchia property is located along the eastern margin of Colombia’s physiographic

Western Cordillera. The region is underlain by a highly complex basement known as the

Romeral Terrane, which may be characterized as a tectonic mélange. The basement

took form when Middle to Upper Mesozoic-aged volcanic and sedimentary oceanic rocks

collided with, and were accreted to, the northern Andean paleo-continental margin,

beginning in the Early Cretaceous. The resulting suture is known as the Romeral fault

system and the mélange can be traced for over 1,000 km along the northern Andes.

Following accretion, the Romeral Terrane and mélange were conformably overlain in the

Late Oligocene to Early Miocene by autochthonous siliciclastic sedimentary sequences

of the Amaga Formation, including basal conglomerates, quartz sandstones, siltstones,

shales, and coal. In the Middle to Late Miocene, both the Romeral mélange and the

Amaga Formation were overlain by mafic to intermediate volcanic flows and pyroclastics

of the Combia Formation, associated with at least one Middle to Late Miocene volcanic

arc emplaced into the Romeral Terrane basement during this time period. Also

associated with late arc formation was the syntectonic emplacement of a series of

intrusives, including polyphase hypabyssal stocks, dikes, and sills of dioritic,

granodioritic, and monzonitic composition.

Following the accretionary events, the region was compressionally deformed in the Early

to Middle Miocene and again in the Middle to Late Miocene, in both cases by other

tectonic accretionary events taking place to the west along the active Pacific margin. The

structural architecture of the Romeral fault and mélange system is essentially that of a

+10 km wide series of north-south striking, vertically dipping dextral transcurrent faults.

Virtually all lithologic contacts within the Romeral basement are structural, characterized

by abundant shearing, mylonitization and the formation of clay-rich fault gouge.

Structural reactivation during the Miocene resulted in orthogonal compression

www.rpacan.com



Rev. 0 Page 1-10

accompanied by mostly west-directed (back) thrusting and high-angle reverse fault

development in the basement rocks.

The Quinchia property and surrounding area is underlain by four principal rock units.

These include; 1) a basement complex consisting of mafic and ultramafic oceanic

volcanic rocks and granitoid intrusive rocks belonging to the Romeral Terrane, 2)

stratified clastic sedimentary rocks of the Amaga Formation, 3) basalt-andesite through

felsic volcanic and pyroclastic rocks of the Combia Formation, and, 4) dioritic to

monzonitic hypabyssal porphyritic intrusive rocks.

At the regional scale, the most prominent structural control in the Quinchia district is the

generally north-south striking, sub-vertical basement architecture of the Romeral fault

system, as reflected in the digital elevation model (DEM), observed structural lineaments

and in the north-south trend of the general Middle Cauca porphyry belt. Structural

reactivation during various post Romeral events is also recorded, and principal and

secondary faults in the Batero-Quinchia Property strike west-northwest to east-southeast

and northeast to southwest and include the Amarilla structural corridor.

The Dos Quebradas, El Centro, and La Cumbre porphyry gold deposits are associated

with three Miocene intrusive centres in a north-south trend that have a strike extension of

approximately 3 km and at elevations between 1,600 MASL and 1,050 MASL. These

intrusive centres are composed of dikes and stocks separated in three groups as i) early

intra-mineral, ii) late intra-mineral, and iii) post mineral dioritic phases emplaced in

intermediate to felsic volcanic rocks of the Miocene Combia Formation and in

Cretaceous basalts.

The three deposits are copper-poor porphyry gold systems in which intermediate argillic

alteration locally extensively overprints an early potassic assemblage and its associated

quartz veinlet stockwork. Gold in these deposits occurs in altered dioritic intrusions and

in the diorite-basalt contact zones. The highest gold and/or copper grades occur in the

early diorite phases characterized by potassic (mainly biotite with subordinate K-

feldspar) and potassic-calcic alteration that is characterized by addition of traces of

actinolite and garnet to the potassic assemblage. Significant amounts of quartz ±

sulphide veinlets and greater than 3% hydrothermal magnetite are common in these

early phases.

www.rpacan.com



Rev. 0 Page 1-11

The intrusions that host mineralization consist of several phases of diorite and later

andesitic dike phases exhibiting characteristic alteration zoning, possibly as a result of

telescoped porphyry and epithermal systems and progressive leaching of gold by

overprinting argillic alteration.

EXPLORATION POTENTIAL RPA is of the opinion that there is very good exploration potential on the property both in

the immediate vicinity of the current resource and elsewhere on the property.

RPA evaluated the exploration potential in the vicinity of the current resource by

examining the gold mineralization extents and grades in the areas that surround the

resource estimate. This information has been used to express the exploration potential

in the immediate vicinity of the resource estimate as an approximate range of tonnages

and grades. RPA cautions that the exploration potential tonnage and grade estimate is

conceptual in nature, that there is insufficient exploration to define mineral resources in

these areas, and that further exploration may not define resources in these areas. It is

RPA’s opinion that the exploration potential on the property in the immediate vicinity of

the current resources is in the order of 100 Mt to 400 Mt of mineralization averaging 0.25

g/t Au to 0.45 g/t Au.

www.rpacan.com



Rev. 0 Page 2-1

2 INTRODUCTION Roscoe Postle Associates Inc. (RPA) was retained by Brandon Rook, President and

Chief Executive Officer of Batero Gold Corp. (Batero), to prepare an independent

Technical Report on the Batero-Quinchia Project, Department of Risaralda, Colombia.

The purpose of this report is to document the technical information available on the

project and to support the initial Mineral Resource estimates for the La Cumbre, El

Centro, and Dos Quebradas Zones. This Technical Report conforms to National

Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101). RPA visited

the property from November 17 to 18, 2010.

Batero is a Canadian exploration company primarily engaged in the acquisition,

evaluation, exploration, and development of mineral properties with a view to commercial

production. The common shares of Batero trade on the TSX Venture Exchange and the

company is a reporting issuer in British Columbia, Alberta, and Saskatchewan.

Effective July 19, 2010, Batero changed its name from Angus Resources Inc.

Currently, the major asset associated with the project is a significant land package

located within a highly prospective geological environment which hosts three porphyry-

style gold-copper mineralized zones that are currently being investigated by diamond

drilling.

SOURCES OF INFORMATION A site visit was carried out by Paul Chamois, M.Sc. (A), P. Geo., Senior Consulting

Geologist with RPA, from November 17 to 18, 2010. The purpose of the visit was to

confirm the local geological setting, review logging and sampling methods, examine drill

core, take check samples, and identify any factors that might affect the project.

During the field visit, Mr. Chamois reviewed the logging and sampling methods,

examined drill core from holes QAPDDH01, QAPDDH02, and QAPDDH03, and visited

two active drill sites and an area currently being trenched. Samples for data verification

were collected from hole QAPDDH01.

www.rpacan.com



Rev. 0 Page 2-2

Discussions were held with personnel from Batero and Sociedad Minera Quinchia S.A.S.

(Minera Quinchia), including:

• Darren Anderson, Consultant, Batero Gold Corp. • Cesar Carvajal, Project Manager, Minera Quinchia • Milton Obando, Project Geologist, Minera Quinchia • Vivianne Cristina Pinzón, Geologist, Minera Quinchia • Andrés Sierra, Geologist, Minera Quinchia • Geronimo Valencía, Geologist, Minera Quinchia • Laura Ceballos, Geologist, Minera Quinchia • Freddy Ladino, Geologist, Minera Quinchia • Angelica Castaño, Geologist, Minera Quinchia

The report was prepared by Paul Chamois, P. Geo., and Luke Evans, M.Sc., P. Eng.,

Principal Geologist with RPA. Mr. Evans prepared Section 14 Mineral Resource

Estimate and also contributed to Sections 1, 25, and 26 of this report. Mr. Chamois

prepared all other sections of the report. Messrs. Chamois and Evans are the

independent Qualified Persons (QPs) for this report.

Significant assistance in the preparation of the report was provided by the staff of

Batero. The report benefits from their collective knowledge of the Batero-Quinchia

Project. Dr. Darryl Lindsay, P. Geo., Batero’s Chief Operating Officer, provided the draft

of the Exploration section, additional metallurgical information, and insight into the next

exploration and development steps for the project. Mr. Kieran Downes, Batero’s

independent qualified professional, provided exploration summaries and an external

review of this report.

The documentation reviewed, and other sources of information, are listed at the end of

this report in 27 References.

www.rpacan.com



Rev. 0 Page 2-3

LIST OF ABBREVIATIONS Units of measurement used in this report conform to the Imperial system. All currency in

this report is US dollars (US$) unless otherwise noted.

µ micron km2 square kilometre °C degree Celsius kPa kilopascal °F degree Fahrenheit kVA kilovolt-amperes µg microgram kW kilowatt µm micrometre kWh kilowatt-hour A ampere L litre a annum L/s litres per second bbl barrels m metre Btu British thermal units M mega (million) C$ Canadian dollars m2 square metre cal calorie m3 cubic metre cfm cubic feet per minute min minute cm centimetre MASL metres above sea level cm2 square centimetre mm millimetre d day mph miles per hour dia. diameter MVA megavolt-amperes dmt dry metric tonne MW megawatt dwt dead-weight ton MWh megawatt-hour ft foot m3/h cubic metres per hour ft/s foot per second opt, oz/st ounce per short ton ft2 square foot oz Troy ounce (31.1035g) ft3 cubic foot ppm part per million g gram psia pound per square inch absolute G giga (billion) psig pound per square inch gauge Gal Imperial gallon RL relative elevation g/L gram per litre s second g/t gram per tonne st short ton gpm Imperial gallons per minute stpa short ton per year gr/ft3 grain per cubic foot stpd short ton per day gr/m3 grain per cubic metre t metric tonne hr hour tpa metric tonne per year ha hectare tpd metric tonne per day hp horsepower US$ United States dollar in inch USg United States gallon in2 square inch USgpm US gallon per minute J joule V volt k kilo (thousand) W watt kcal kilocalorie wmt wet metric tonne kg kilogram yd3 cubic yard km kilometre yr year km/h kilometre per hour

www.rpacan.com



Rev. 0 Page 3-1

3 RELIANCE ON OTHER EXPERTS This report has been prepared by RPA for Batero. The information, conclusions,

opinions, and estimates contained herein are based on:

• Information available to RPA at the time of preparation of this report, • Assumptions, conditions, and qualifications as set forth in this report, and • Data, reports, and other information supplied by Batero and other third party

sources.

For the purpose of this report, RPA has relied on ownership information provided by

Batero and Holguín Neira & Pombo, legal counsel to Batero’s predecessor company,

Angus Resources Inc., in Colombia regarding title to the Quinchia Project. Holguín Neira

& Pombo provided a legal review and opinion dated December 3, 2009. This

information was relied upon in Section 1 and Section 4 of this report.

Except for the purposes legislated under provincial securities laws, any use of this report

by any third party is at that party’s sole risk.

www.rpacan.com



Rev. 0 Page 4-1

4 PROPERTY DESCRIPTION AND LOCATION LAND TENURE The Batero-Quinchia Project consists of three contiguous exploration licences located

within the Municipality of Quinchia, Department of Risaralda, Colombia (Figures 4-1 and

4-2). Collectively, these titles cover approximately 1,407.3 ha. The project is located on

the Instituto Geográfica Augustin Codazzi (IGAC) Plancha 186-IV-6 and 205-II-A

topographic maps (1:25,000 scale). Table 4-1 lists the subject mining titles and the

relevant tenure information. The subject mining titles were map-staked and therefore no

boundary markers exist. As of the effective date of this report, none of the licences have

been surveyed. The subject mining titles are held under the name of Sociedad Minera

Quinchia S.A.S.

The three parcels of land are located within a rectangular area extending for

approximately 6.3 km in an east-west direction and 5.4 km in a north-south direction.

The Universal Transverse Mercator (UTM) co-ordinates for the approximate centre of

this area are 422,500mE, 584,500mN (WGS-84, Zone 18N).

In accordance with Colombian law, the holder of the mining licences has a right to

access the parcel of land covered by such mining licences and may perform exploration

and exploitation work thereon, subject to indemnification for damages to the owners of

such parcel of land that may arise from such access, and the activities carried on by the

holder of the mining licences.

TABLE 4-1 QUINCHIA PROPERTY DESCRIPTION Batero Gold Corp. – Batero-Quinchia Project

Original Minera Quinchia

Contract Contract Registration Registration Area Number Type Date Date (ha) 18567 Exploration Contract 15/04/1998 18/05/2009 859.08 22159 Exploration Contract 26/07/2005 25/06/2009 250.00 22270 30 Year Concession Contract 10/07/2006 18/05/2009 298.35

RPA understands that Batero has received notice from the Agencia Nacional de Mineria,

previously known as INGEOMINAS, that concessions 18567 and 22159 have received

www.rpacan.com



Rev. 0 Page 4-2

approval for conversion to Concession Contracts allowing up to 48 years of exploitation.

Although the approvals have been received, the registration of the concessions as

Concession Contracts is incomplete as of the effective date of this report.

AGREEMENT On July 26, 2010, Batero announced that it had acquired all of the issued and

outstanding shares of Bahia Bonita Properties SA (Bahia). Bahia is a Panamanian

company incorporated to hold all of the issued and outstanding capital in Sociedad

Minera Quinchia S.A.S. (Minera Quinchia), a Colombian company which holds all the

rights in the Quinchia property. As consideration for all of the outstanding shares of

Bahia, Batero issued an aggregate of 6.65 million common shares. In addition, Batero

agreed to make cash payments totalling $2.2 million (of which $450,000 was paid on the

closing date) and incur expenditures on the Quinchia property totalling $5 million over

four years. Batero also agreed to issue an additional two million common shares if it


least five million ounces of gold categorized as Measured Resource, as defined in NI 43-

101, at a cut-off grade of 0.7 g/t of gold or gold equivalent on the Quinchia property.

Batero agreed to issue 525,000 common shares to an arm’s length party as a finder’s

fee.

On September 10, 2010, Batero announced an amendment to the terms of the

acquisition agreement for the Quinchia property whereby all cash payments and

expenditures over four years were reduced to the payment of $1.68 million in Batero

units priced at $1.50 each to complete the acquisition. Each unit comprised one share

and one half warrant, with each full warrant being exercisable for two years at a price of

$2.25. As a result, Batero holds a 100% interest in the Quinchia Project, subject to the

issuance of two million future contingent shares as set out above.

MINERAL LICENCES Mineral rights in Colombia are reserved to the federal government and governed by the

Colombian Mining Code. The Colombian Mining Code has been changed and amended

on several occasions. The oldest version relevant to the Batero-Quinchia Project is

Decree 2685 of 1988 (the Previous Mining Code), which has been replaced and

www.rpacan.com



Rev. 0 Page 4-3

superseded in its entirety by Law 685 of 2001, as amended by Law 1382 of 2010. The

mining law is administered by the Ministry of Mines and Energy which has relegated the

administrative duties concerning concession issues to Agencia Nacional de Mineria

(“ANM”; ministerial decree # 4134, November 03, 2011) and the institution formally

known as INGEOMINAS will change name to Servicio Geologico Colombiano (“SGC”;

ministerial decree 4131, November 03, 2011) and be responsible for basic and applied

geological investigations.

In Colombia, mineral concession agreements consist of three phases, namely the

exploration, construction and exploitation phases, and are governed by Law 685 of 2001

as modified by Law 1382 of 2010. Under the Modified Mining Code, the exploration

phase is for a three-year period, which can be extended for up to four additional two-

year periods for a maximum of eleven years. During the exploration phase, annual

surface payments, Cánon Superficiario (Cánon), are payable to the Colombian

government on the basis of one minimum daily salary per hectare. The current cánon

rate is COP 17,166 per hectare (approximately US$8.58/ha). The surface payment is

calculated as one minimum daily wage per contracted hectare per year for the first five

years of the exploration phase. During years six and seven of the exploration phase, the

payment increases to 1.25 minimum daily wages per contracted hectare per year, and in

years eight to eleven it increases to 1.5 minimum daily wages per contracted hectare per

year. Upon completion of the exploration phase of a concession, the construction phase

is for a period of three years, and may be extended for a period of one year, after which

it enters its exploitation phase, in which cánon fees are no longer payable but are

replaced by a production royalty payable to the Colombian government.

Licence 18567 is an Exploration Licence which was first issued under Decree 2655 of

1988. Licence 18567 was granted to TVX Minera Ltda in 1994 and subsequently

assigned to Juan Davis Uribe Hurtado (Hurtado) in 1998. On January 26, 2000, a

request was filed for the term of the licence to be suspended due to force majeure. The

suspension was approved on April 13, 2000 and the licence was renewed in 2004. On

May 18, 2009, INGEOMINAS authorized the assignment of 100% of the rights and

obligations in Licence 18567 in favour of Minera Quinchia. In November 2011, the

INGEOMINAS office in Ibaque in its official minutes assigned the concession the status

of Concession Contract to Licence 18567 for a 28 year term. On January 10, 2012,

www.rpacan.com



Rev. 0 Page 4-4

Batero requested that the Concession Contract be formally documented in the

Colombian Mineral Registry.

Licence 22159 is an Exploration Licence which was first applied for in 1998 but was

issued under Decree 2655 of 1988 on July 26, 2005. In 2002, the Embera – Chami

native community located within the area of Licence 22159 was given an opportunity to

exercise its preferential right to the area by INGEOMINAS’ predecessor agency, the

Empresa Nacional Minera Ltda. This right was not exercised and the licence was

granted to Silvia Estela Rios Martinez (Martinez) and Hurtado in 2005. On June 25,

2009, INGEOMINAS authorized the assignment of 100% of the rights and obligations in

Licence 22159 in favour of Minera Quinchia. In November 2011, the INGEOMINAS

office in Ibague in its official minutes assigned the concession the status of Concession

Contract to Licence 22159 for a 28 year term. On January 10, 2012, Batero requested

that the Concession Contract be formally documented in the Colombian Mineral

Registry.

Licence 22270 is a Concession Contract issued under Mining Law 685 of 2001. It was

first applied for by Martinez and Hurtado on July 9, 1998. The concession contract was

executed on October 24, 2005. It was registered in the National Mining Registry on July

10, 2006. On May 18, 2009, INGEOMINAS authorized the assignment of 100% of the

rights and obligations in Licence 22270 in favour of Minera Quinchia. The term of the

contract is for 30 years from the date of its registration in the National Mining Registry.

ROYALTIES AND OTHER ENCUMBRANCES RPA is not aware of any royalties, back-in rights, or other obligations related to the

Agreement or underlying agreements.

The government of Colombia requires the payment of a 4% gross royalty for gold, based

on 80% of the closing price of the London Bullion Market for an effective rate of 3.2%, for

any production from the subject licences.

www.rpacan.com



Rev. 0 Page 4-5

PERMITTING Early stages of exploration including geological mapping and stream or soil

geochemistry do not require permitting. However, exploration activity involving soil

disturbance, including trenching and road and drill pad construction, requires an

environmental management plan (EMP) and approval from the Corporación autónoma

regional de Risaralda (CARDER). Drilling requires a water use and return permit.

All exploration projects require environmental insurance which can be purchased on an

annual basis during the first three years of the licence or concession contract.

Batero has submitted environmental management plans for the on-going work. RPA

understands that Batero has been granted all the required permits for surface

exploration on the property, including soil disturbance and water use and return related

to drilling, and that the permits are current. Batero initiated on-going water sampling

monitoring and mitigation activities at the commencement of the drilling activities.

Caribbean Sea

PacificOcean

GolfoDe

Panama

Golfo deVenezuela

Lago deMaracaibo

Rio Napo

Rio Putumayo

Rio Caqueta

Rio Javari

Rio Ica

Rio Japura

Rio Negro

Rio Uaupes

Rio

Ces

iqui

are

Rio

Orinoco

Rio Meta

RioAra

ucaRio

Apure

Rio Guainia

Rio Guaviare

RioMe

ta

Rio Magdalena

Rio

Mag

dale

na

Rio

Cauca

Rio

Cau

ca

Rio

Atra

to

Rio Vaupes

Rio

Juru

a

Rio O

rinoc

o

Amazo

n

Amazo

n

Aruba(Neth.)

CuracaoBonaire

Netherlands Antilles(Neth.)

Colombia

Venezuela

Brazil

Peru

Ecuador

Panama

Risasalda

PuertoCabello

PuertoPaez

Puerto Ayacucho

MorganitoSanta Rita

Barrancomina

Calamar

San Vicentedel Caguan

Larandia

San Fernandode Atabapo

Cucui

Iauarete

Sao Gabrielda Cachoeira

Vila BittencourtLa Pedrera

Tabatinga

Iquitos

Flor deAgosto

El Encanto

PuertoSantander

La Tagua

Puerto Leguizamo

Tres EsquinasSanta AnaPuerto AsisSan Miguel

Vidal

Pantoja

Nueva Loja

Tulcan

IpialesEsmeraldes

San Lorezo

Tumaco

BuenaventuraTulua

PuertoSalgar

PuertoBerrio

Barrancabermeja

Yaviza

Careoa

Turbo

Covenas

PuertoBolivar

Maracaibo

MeridaBarinas

Trujillo

SanFelipe

SanCarlos

Coro

Guanare

Barqulsimeto

San Cristobal

El Amparo

Paz de Rio

Colon

Maracay

Valencia

San Juan deLos Morros

SanFernando

Cabruta

PuertoInirida

Puerto Carreno

Arauca

Cucuta

Valledupar

Riohacha

Santa Marta

Barranquilla

Cartagena

Sincelejo

Monteria

Medellin

Manizales

PereiraArmenia

Ibaque

Cali

Popayan

Neiva

Florencia

San Jose delGuaviare

Mitu

Villavicencio

Tunja

Yopal

MocoaPasto

Quibdo

Bucaramanga

Leticia

Willemstad

Caracas

Quito

Panama

Bogota

Oranjestad

80° 76° 72° 68°

8°

0°

80° 76° 72° 68°

12°

4°

4°

8°

0°

12°

4°

4°

BATERO-QUINCHIA

SouthAmerica

COLOMBIA

N

0

0 100

200 Kilometers

200 Miles

100

International Boundaries

Legend:

National Capital

Department Boundaries

Department Capital

Railroad

Road

Major Cities

February 2012

Batero-Quinchia Project

Location Map

Batero Gold Corporation

Department of Risasalda, Colombia

Figure 4-1

4-6

www.rpacan.com

Risaraldita

Seguia

AntonioSan

Cerro

Cerro

Cine

bra

Mapura

1000

1000

El Dinde

aM

apur

a

Municipio Quinchia

QTa

mbo

ral

QB

ate

ro

EL

NA

RA

NJO

VEREDA

La LomaLa Ayacona

Mandarinos

Q Zamoran

Los

Miracielo

Bonito

Municipio Quinchia

Cascarillo

Alto

Patio

POMESIA

VEREDA

Corregimiento

de Irra

Est Irra

Hda Pto Bela

Mapara

Rio Tarria

RioQ

uinchia

Q. Guanguita

Q. Guerrerito

Rio Opaima

Q. G

uadualejo

Q. G

uerr

ero

Q. d

e Lia

nadas

Q. A

guas

Clar

as

Q. Cu

anquia

Q. Sta

Maria

Q. Sur

bia

Rio Quinchia

Q. La F

ragua

Q. T

inta

Q. C

husca

l

Cerro San Benito

Escuela

Guerrero

Crio

Escuela la Cumbre

El Cerro

Escuela El Cedral

telecom

Clla

de

Guerre

ro00

ala

Cum

bre

Tele

com

Escuela San Juan

El

Descanso

de Pol Naranjal

Ins Deptal

aSan

taM

aria

Bosque

La Sombra

Las Cruces

El

El Rocio

Langosta

Quinchia

La La Granada

El Limon

La Cruceria

a Quinchia

Piedra Lisa

Palogrande

Esc

VEREDA

Yarumal

CAUSTRIA

aNaranjal

Yarumal

0

1

QUINCHIAQUINCHIAQUINCHIAQUINCHIAQUINCHIAQUINCHIAQUINCHIAQUINCHIA

2,0002,0002,0002,0002,0002,0002,0002,0002000

0,

555

0

1,7001,7001,7001,700

1,7001,7001,7001,700

1,100

1,100

1,1001,100

1,1001,100

1,100

1,100

,

0

1,5

00

1,5

00

1,5

00

1,5

00

1,5

00

1,5

00

1,5

00

1,5

00

,

800

800

800

800

800

800

800

800

, ,

,

,0

,0

,,0

,00

,00

0

To Quinchia

To

Medelli

nC

ity

To Manizales

City

ToQu

inchia

To Quinc

hia

Cau

ca

Riv

er

1600

1600

1400

12001400

1400

1600

1400

2000

1800

2000

1300

1200

1200

1000

1200

1600

14

00

1200

11001200

800

800

800

10

00

800

1200

1600

1400

1200

1000

1000

800

1800

22159

22270

18567

18567

DOS QUEBRADAS

LA CUMBRE

EL CENTRO

Miraflores

Chuscal

582,0

00 m

N583,0

00 m

N584,0

00 m

N585,0

00 m

N586,0

00 m

N588,0

00 m

N587,0

00 m

N589,0

00 m

N

422,000 mE 423,000 mE 424,000 mE 425,000 mE 426,000 mE

589,0

00 m

N588,0

00 m

N587,0

00

mN

586,0

00 m

N585,0

00 m

N584,0

00

mN

590,0

00 m

N 421,000 mE420,000 mE

422,000 mE 423,000 mE 424,000 mE 425,000 mE 426,000 mE421,000 mE420,000 mE

590,0

00 m

N583,0

00 m

N582,0

00

mN

Batero Gold Corp Property

Legend:

Artisanal Mining

New Road or Future Access

Existing Road

Mineralized Zone

0 500 2000

Metres

1000 1500

N

February 2012 Source: C. Baldys et al., 2009.

WGS84, UTM Zone 18N

Batero-Quinchia Project

Property Map

Batero Gold Corporation

Department of Risasalda, Colombia

Figure 4-2

4-7

www.rpacan.com

www.rpacan.com



Rev. 0 Page 5-1

5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ACCESSIBILITY The Batero-Quinchia Project is located approximately 95 km by road from Pereira, the

capital city of the Department of Risaralda, which has a population of approximately

800,000 in its metropolitan area. Pereira is serviced by multiple flights daily from Bogota

and Medellin as well as international flights from Panama City, Panama. The drive to the

town of Quinchia from Pereira takes approximately two hours on paved roads. The

property is located about five kilometres south-southeast from the town of Quinchia.

Gravel roads provide direct access to the Dos Quebradas Cumbre exploration area.

Driving time from the town of Quinchia to the property is about 30 minutes. Access

within the property is limited to foot paths and horse/mule trails.

CLIMATE The Project area lies within the warm temperate wet forest zone according to the

Holdridge Life Zone climatic classification system and in the tropical monsoonal zone of

the Koppen climate classification chart. Climatic zones vary with elevation and are

defined as hot (greater than 24°C) below 1,000 m in the Cauca River valley; temperate

(18°C to 24°C) between 1,000 m to 2,000 m; and cold above 2,000 m (12°C to 18°C).

The rainfall ranges from 900 mm to 3,000 mm per year and typically averages greater

than 1,000 mm per year. Without significant changes in temperature, the seasons are

defined by variations in precipitation. Two rainy seasons occur, from March to May and

from September to December.

Table 5-1 illustrates the major climatic data for the closest weather station,

Pereira/Matecana (altitude 1,342 m).

www.rpacan.com



Rev. 0 Page 5-2

TABLE 5-1 CLIMATIC DATA - PEREIRA/MATECANA Batero Gold Corp. - Batero-Quinchia Project

J F M A M J J A S O N D Max. Temp. (°C) 28 28 28 27 27 27 28 28 27 27 27 27

Min. Temp. (°C) 16 16 16 16 16 16 16 16 16 16 16 16

Mean Temp. (°C) 22 22 22 22 21 21 22 22 22 21 21 21

Precip. (mm) 123 115 178 235 235 171 124 124 189 274 278 162

Sunshine (h) 196 171 165 132 141 151 186 178 148 136 156 179

Days w/Precip. ≥0.1 mm 14 13 17 20 21 20 17 16 19 23 22 17

(www.theweathernetwork.com)

The ecological zones defined by the Holdridge Life Zone system are zoned by elevation.

The ecological zones that pertain to the project area include:

• Premontane (subtropical) wet forest transitional to tropical and dry forest; defined as temperatures greater than 24°C, annual rainfall of 1,500 mm to 2,800 mm and elevation of 700 m to 1,000 m.

• Premontane (subtropical) wet forest defined as temperatures of 18°C to 24°C, rainfall of 2,000 mm to 4,000 mm and elevation of 1,000 m to 1,900 m.

• Lower montane (warm temperate) wet forest defined as temperatures of 12°C to

18°C, rainfall of 2,000 mm to 4,000 mm and elevation of 1,900 m to 2,900 m.

Exploration activities are possible year round.

LOCAL RESOURCES AND INFRASTRUCTURE According to the Departamento Administrativo Nacional de Estadistica (DANE) census

of 2005, the Municipality of Quinchia had a population of 31,849. Limited resources are

available in the town of Quinchia including emergency medical services, temporary

accommodations and fuel. Quinchia has daily bus service to Pereira. A greater range of

services are available in Pereira. Any mining development on the project would have

access to the national electrical grid. Three 230 kV high tension power lines run along

the Cauca River Valley. A 132 kV sub-station at Marmato supplies power to the

surrounding area. An abandoned railway line runs along the east side of the Cauca

River. Abundant water is available locally for process purposes.

There is no permanent infrastructure on the property.

www.rpacan.com



Rev. 0 Page 5-3

PHYSIOGRAPHY The property is located within the Cauca-Patia or Inter-Andean physiographic province

which lies between the Central and Western Cordillera. As such, it is located in steep,

mountainous and relatively rugged terrain at elevations ranging from 800 MASL to 2,800

MASL. Elevation within the Quinchia property varies from 1,300 MASL to 2,000 MASL.

The natural vegetation is dominated by lush, low-growth Andean forest and dense

secondary scrub growth. Much of the original forest cover has been cleared for

agriculture and grazing, particularly at lower elevations. Land is used primarily for

growing coffee and sugar cane and lesser areas for cattle grazing. Subsistence farming

crops include plantain, beans, bananas and manioc.

www.rpacan.com



Rev. 0 Page 6-1

6 HISTORY PRIOR OWNERSHIP The licences which comprise the Quinchia Property were acquired by Juan David Uribe

Hurtabo and Silvia Stella Rios Martinez (the Vendors) in 1998. The property was

optioned by the Vendors to AngloGold Ashanti (AGA) in 2005. From 2005 to 2008, a

subsidiary of AGA, Sociedad Kedahda S.A. (Kedahda), carried out exploration programs

consisting of geological mapping and sampling, soil sampling, diamond drilling,

preliminary metallurgical testing, and airborne geophysics.

In November 2007, Caribbean Copper and Gold Corporation (Caribbean) entered into

an agreement with AGA whereby it could earn a 100% interest in the property.

Caribbean assumed AGA’s responsibilities with respect to the underlying agreement. In

2009, Caribbean and AGA terminated the option agreement and the property reverted to

the Vendors.

In 2010, Batero acquired the Quinchia property through its acquisition of all the issued

and outstanding shares of Bahia, a Panamanian company incorporated to hold all of the

issued and outstanding capital in Minera Quinchia, a Colombian company which holds

all the rights in the Quinchia property.

EXPLORATION HISTORY Artisanal mining has taken place in the Batero-Quinchia Project area from Pre-

Colombian to modern times. Recent historical accounts indicate that artisanal gold

production in the area was greatest during the 1950s (Rodriguez et al., 2000). Interest

was renewed in the area in the late 1970s and culminated in the 1980s in the Miraflores

area with the “Associacion de Mineros de Miraflores”, a local artisanal mining

cooperative.

During the 1990s, the Quinchia area drew the attention of various Canadian junior

companies, some of whom acquired ground in the general area. In 1997, a subsidiary of

www.rpacan.com



Rev. 0 Page 6-2

TVX Gold Inc., TVX Mineria de Colombia, completed a comprehensive review of the

Quinchia property but did not follow up with ground work.

In 2000, INGEOMINAS undertook a series of technical studies in the area including

geological mapping, geochemical and geophysical surveying and prognostic (non NI 43-

101 compliant) resource estimations (Baldys and Anderson, 2010).

In May 2005, Kedahda completed reconnaissance sampling in selected areas within the

current property.

From April to November 2006, Kedahda completed geological mapping at a scale of

1:10,000 along the eastern part of the current property and soil sampling and detailed

geological mapping at a scale of 1:2,500 at Dos Quebradas South and La Cumbre.

Channel sampling in saprolitic diorite at Dos Quebradas returned values of greater than

3.0 g/t Au across 50 m. B-horizon soil sampling was completed on a 100 m by 25 m grid

at Dos Quebradas and on a 200 m by 50 m grid at La Cumbre. Follow up diamond

drilling of soil anomalies on both properties intersected porphyry style Au + Cu

mineralization.

From January to November 2006, Kedahda completed a 15 hole drilling program

totalling 4,090.7 m on the Dos Quebradas, La Cumbre, and El Centro targets. Table 6-1

lists the relevant information for those holes drilled by Kedahda on the Quinchia

property. Table 6-2 lists the significant intersections achieved by Kedahda. The

locations of Kedahda’s drilling are shown on Figure 6-3.

www.rpacan.com



Rev. 0 Page 6-3

TABLE 6-1 ANGLOGOLD ASHANTI (KEDAHDA) DIAMOND DRILLING Batero Gold Corp. – Batero-Quinchia Project

Hole Easting Northing Elevation Azimuth Dip Length Zone (m) (m)

13-03-DD001 421058.79 586882.71 1,625.16 88.5 -60 23.37 Dos Quebradas 13-03-DD002 421059.75 586883.95 1,625.16 90 -60 318 Dos Quebradas 13-03-DD003 421384.12 586915.05 1,523.4 268.5 -60 270 Dos Quebradas 13-03-DD004 421192.32 586676.44 1,617.42 270 -45 170.55 Dos Quebradas 13-03-DD005 421271.57 586647.52 1,555.61 270 -45 261.6 Dos Quebradas 13-03-DD006 421273.79 586649.61 1,555.3 90 -50 250.75 Dos Quebradas 13-03-DD007 420701.88 585386.53 1,893.54 90 -60 265.3 La Cumbre 13-03-DD008 420980.97 585399.06 1,865.31 270 -60 282.65 La Cumbre 13-03-DD009 420793.21 585712.7 1,871.29 90 -60 245 La Cumbre 13-03-DD010 420791.83 585711.72 1,872.14 270 -55 249 La Cumbre 13-03-DD011 421130.12 586390.39 1,615.69 270 -50 259.3 Dos Quebradas 13-03-DD012 421096.38 586062.96 1,676.74 270 -50 250 El Centro 13-03-DD013 421098.53 586059.91 1,678.31 160 -50 250.35 El Centro 13-03-DD014 421099.16 586062.57 1,678.98 70 -50 261.5 El Centro 13-03-DD015 420982.14 585401.53 1,868.45 94 -50 108.5 La Cumbre 13-03-DD016 420698.58 585388.14 1,892.78 269.5 -51 193.1 La Cumbre 13-03-DD017 421441.71 586663.18 1,599.22 270 -80 492.7 Dos Quebradas 13-03-DD018 420976.23 585153.76 1,795.35 300 -80 550 La Cumbre

Total 4,701.67

www.rpacan.com



Rev. 0 Page 6-4

TABLE 6-2 ANGLOGOLD ASHANTI (KEDAHDA) SIGNIFICANT RESULTS Batero Gold Corp. – Batero-Quinchia Project

Hole From To Length Au Ag Cu Zone

(m) (m) (m) (g/t) (g/t) (%) 13-03-DD002 170.0 194.0 24.0 0.761 0.59 0.09 Dos Quebradas

232.0 260.0 28.0 0.978 1.82 0.12 Dos Quebradas 13-03-DD003 146.0 158.0 12.0 0.705 1.68 0.07 Dos Quebradas

178.0 208.0 30.0 0.748 0.93 0.08 Dos Quebradas

210.0 224.0 14.0 0.680 0.87 0.08 Dos Quebradas

230.0 269.50 37.5 1.672 1.58 0.17 Dos Quebradas 13-03-DD004 84.0 116.0 32.0 0.593 1.33 0.08 Dos Quebradas 13-03-DD005 0.0 48.0 48.0 0.642 2.28 0.13 Dos Quebradas

148.0 208.0 60.0 0.915 2.12 0.09 Dos Quebradas 13-03-DD006 0.0 216.0 216.0 0.746 1.67 0.11 Dos Quebradas 13-03-DD007 4.0 54.0 50.0 0.584 1.09 0.07 La Cumbre

70.0 92.0 22.0 0.687 1.04 0.09 La Cumbre

214.0 265.3 51.3 0.612 1.48 0.13 La Cumbre 13-03-DD008 6.0 216.0 210.0 0.797 2.1 0.15 La Cumbre

230.0 282.0 52.0 0.639 2.25 0.14 La Cumbre 13-03-DD013 94.0 134.0 40.0 0.506 4.26 0.18 El Centro 13-03-DD015 6.0 68.0 62.0 0.778 1.79 0.1 La Cumbre

86.0 108.5 22.5 0.693 1.32 0.14 La Cumbre 13-03-DD016 0.0 32.0 32.0 0.534 1.22 0.06 La Cumbre 13-03-DD017 154.0 182.0 28.0 0.837 1.65 1.12 Dos Quebradas

198.0 224.0 26.0 0.532 1.95 0.1 Dos Quebradas

300.0 354.0 54.0 0.775 1.65 0.11 Dos Quebradas 13-03-DD018 4.0 34.0 30.0 0.599 2.28 0.12 La Cumbre

62.0 96.0 34.0 0.629 4.46 0.14 La Cumbre

104.0 118.0 14.0 0.580 1.79 0.11 La Cumbre

136.0 156.0 20.0 0.615 3.83 0.11 La Cumbre

166.0 176.0 10.0 0.609 2.41 0.15 La Cumbre

218.0 242.0 24.0 0.677 2.38 0.15 La Cumbre

304.0 318.0 14.0 1.231 3.07 0.22 La Cumbre

494.

technical report on the batero-quinchia project, department of risaralda,...

Documents