Amended NI 43-101 Technical Report Las Lomas Project Department of Piura, Peru

120 Pages·2017·8.05 MB·English

by  Martinez, Monica

Amended NI 43-101 Technical Report
Las Lomas Project
Department of Piura, Peru

Effective Date: January 10, 2017
Report Date: July 5, 2017

Report Prepared for
Plexmar Resources Inc.
79 Wellington Street West, Suite 2100
P.O. Box 157
Toronto, Ontario, M5K 1H1

Canada
Report Prepared by

SRK Consulting (U.S.), Inc.
1125 Seventeenth Street, Suite 600
Denver, CO 80202

SRK Project Number: 470200-140
Signed by Qualified Persons:
Giovanny J. Ortiz, BSc Geology, FAusIMM, SRK Consulting (US) Inc., Associate Geologist (Resource
Geology)

Reviewed by:
Matthew Hastings, MSc Geology, MAusIMM (CP), Senior Consultant (Resource Geology)
SRK Consulting (U.S.), Inc.
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Table of Contents
1 Summary ....................................................................................................................... 1
1.1 Property Description and Ownership .................................................................................................. 1
1.2 Geology and Mineralization ................................................................................................................ 1
1.3 Status of Exploration, Development and Operations .......................................................................... 2
1.4 Conclusions and Recommendations .................................................................................................. 3
1.4.1 Exploration .............................................................................................................................. 3
2 Introduction .................................................................................................................. 4
2.1 Terms of Reference and Purpose of the Report ................................................................................. 4
2.2 Qualifications of Consultants (SRK).................................................................................................... 4
2.3 Details of Inspection ............................................................................................................................ 5
2.4 Sources of Information ........................................................................................................................ 5
2.5 Effective Date ...................................................................................................................................... 5
2.6 Units of Measure ................................................................................................................................. 5
3 Reliance on Other Experts .......................................................................................... 6
4 Property Description and Location ............................................................................ 7
4.1 Property Location ................................................................................................................................ 7
4.2 Mineral Titles ....................................................................................................................................... 8
4.2.1 Legal Framework ..................................................................................................................... 8
4.2.2 Mining Concessions ................................................................................................................ 9
4.2.3 Nature and Extent of Issuer’s Interest ................................................................................... 14
4.3 Royalties, Agreements and Encumbrances ...................................................................................... 15
4.4 Environmental Liabilities and Permitting ........................................................................................... 17
4.4.1 Environmental Liabilities........................................................................................................ 17
4.4.2 Required Permits and Status ................................................................................................ 17
4.5 Other Significant Factors and Risks.................................................................................................. 19
5 Accessibility, Climate, Local Resources, Infrastructure and Physiography ........ 20
5.1 Topography, Elevation and Vegetation ............................................................................................. 20
5.2 Accessibility and Transportation to the Property .............................................................................. 21
5.3 Climate and Length of Operating Season ......................................................................................... 22
5.4 Infrastructure Availability and Sources.............................................................................................. 22
6 History......................................................................................................................... 23
6.1 Prior Ownership and Ownership Changes ....................................................................................... 23
6.2 Exploration and Development Results of Previous Owners ............................................................. 23
6.2.1 Hans Mo-Cu-Au Prospect ..................................................................................................... 23
6.3 Historic Mineral Resource and Reserve Estimates .......................................................................... 27
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6.4 Historic Production ............................................................................................................................ 27
7 Geological Setting and Mineralization ..................................................................... 28
7.1 Regional Geology.............................................................................................................................. 28
7.2 Local Geology ................................................................................................................................... 32
7.2.1 Lithology ................................................................................................................................ 32
7.2.2 Structural Geology ................................................................................................................. 35
7.3 Property Geology .............................................................................................................................. 35
7.3.1 Bolsa del Diablo .................................................................................................................... 35
7.3.2 Hans ...................................................................................................................................... 36
7.3.3 Sapillica ................................................................................................................................. 38
7.3.4 Tomapampa .......................................................................................................................... 39
7.4 Significant Mineralized Zones ........................................................................................................... 40
7.4.1 Bolsa del Diablo .................................................................................................................... 41
7.4.2 Hans ...................................................................................................................................... 41
7.4.3 Sapillica ................................................................................................................................. 42
7.4.4 Tomapampa .......................................................................................................................... 43
8 Deposit Type .............................................................................................................. 44
8.1 Mineral Deposit ................................................................................................................................. 44
8.1.1 Cu ± Au ± Mo Porphyry ......................................................................................................... 44
8.1.2 Epithermal Gold Deposits...................................................................................................... 46
8.1.3 Volcanogenic Massive Sulfides Ore Deposit (VMS) ............................................................. 48
8.2 Geological Model .............................................................................................................................. 50
8.2.1 Porphyry Type Deposit .......................................................................................................... 50
8.2.2 Epithermal Gold Deposit ....................................................................................................... 51
8.2.3 Volcanogenic Massive Sulfides Ore Deposit (VMS) ............................................................. 51
9 Exploration ................................................................................................................. 54
9.1 Relevant Exploration Work ............................................................................................................... 54
9.2 Sampling Methods and Sample Quality ............................................................................................ 56
9.3 Significant Results and Interpretation ............................................................................................... 57
9.3.1 Bolsa del Diablo .................................................................................................................... 57
9.3.2 Hans ...................................................................................................................................... 60
9.3.3 Sapillica ................................................................................................................................. 64
9.3.4 Tomapampa .......................................................................................................................... 67
10 Drilling ......................................................................................................................... 70
11 Sample Preparation, Analysis and Security ............................................................ 71
11.1 Security Measures ............................................................................................................................ 71
11.2 Sample Preparation for Analysis ....................................................................................................... 71
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11.2.1 Chumpe Laboratory ............................................................................................................... 72
11.2.2 ALS Minerals ......................................................................................................................... 73
11.3 Sample Analysis ................................................................................................................................ 73
11.3.1 Chumpe Laboratory ............................................................................................................... 73
11.3.2 ALS Minerals ......................................................................................................................... 73
11.4 Quality Assurance/Quality Control Procedures ................................................................................ 74
11.5 Opinion on Adequacy ........................................................................................................................ 74
12 Data Verification ......................................................................................................... 75
12.1 Procedures ........................................................................................................................................ 75
12.2 Limitations ......................................................................................................................................... 76
12.3 Opinion on Data Adequacy ............................................................................................................... 76
13 Mineral Processing and Metallurgical Testing ........................................................ 77
14 Mineral Resource Estimate ....................................................................................... 78
15 Mineral Reserve Estimate .......................................................................................... 79
16 Mining Methods .......................................................................................................... 80
17 Recovery Methods ..................................................................................................... 81
18 Project Infrastructure................................................................................................. 82
19 Market Studies and Contracts .................................................................................. 83
20 Environmental Studies, Permitting and Social or Community Impact .................. 84
21 Capital and Operating Costs ..................................................................................... 85
22 Economic Analysis .................................................................................................... 86
23 Adjacent Properties ................................................................................................... 87
24 Other Relevant Data and Information ....................................................................... 88
25 Interpretation and Conclusions ................................................................................ 89
25.1 Exploration ........................................................................................................................................ 89
26 Recommendations ..................................................................................................... 91
26.1 Recommended Work Programs and Costs ...................................................................................... 91
26.1.1 Phase I .................................................................................................................................. 91
26.1.2 Phase 2 ................................................................................................................................. 92
26.1.3 Costs ..................................................................................................................................... 92
27 References .................................................................................................................. 93
28 Glossary ...................................................................................................................... 97
28.1 Mineral Resources ............................................................................................................................ 97
28.2 Mineral Reserves .............................................................................................................................. 97
28.3 Definition of Terms ............................................................................................................................ 98
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28.4 Abbreviations .................................................................................................................................. 100

List of Tables
Table 1-1: Ore Deposit Models Applicable to Las Lomas Project ...................................................................... 2
Table 2-1: Site Visit Participants ......................................................................................................................... 5
Table 4-1: Mining Scales According to the Mining Legislation of Perú .............................................................. 8
Table 4-2: Validity Right and Penalties Defined to Maintain Mining Rights ....................................................... 9
Table 4-3: Las Lomas Mining Concessions Status .......................................................................................... 10
Table 4-4: Campesino Communities Settled in the Las Lomas Project ........................................................... 14
Table 4-5: Annual Payments for Minera de Oro Concessions Option Agreement ........................................... 16
Table 4-6: Maximum Total Payments for the Mining Rights Transfer – Minera Leona de Oro ........................ 16
Table 4-7: Environmental Management Instruments for Exploration Activities ................................................ 18
Table 5-1: Road Distances to Access the Property .......................................................................................... 21
Table 7-1: Ore Deposit Models Applicable to Las Lomas Project .................................................................... 40
Table 8-1: Form of Epithermal Deposits ........................................................................................................... 47
Table 8-2: Epithermal Deposits Ore Minerals in Au-Rich Ores ........................................................................ 47
Table 8-3: Epithermal Deposits Mineralogy of Gangue .................................................................................... 48
Table 8-4: Hydrothermal Alteration of Epithermal Deposits ............................................................................. 48
Table 8-5: Geochemical Associations of Epithermal Deposits ......................................................................... 51
Table 8-6: Utility of Geophysical Techniques in Exploration of VMS Deposits ................................................ 52
Table 9-1: Exploration Campaigns Carried Out by Plexmar ............................................................................ 54
Table 9-2: Exploration Campaigns Carried Out by Plexmar (After 2012) ........................................................ 55
Table 11-1: Chemical Analysis of Rock Samples 2004 - 2014 ........................................................................ 71
Table 11-2: Chumpe Laboratory - Lower Limits of Detection ........................................................................... 73
Table 11-3: ALS Minerals - Lower Limits of Detection ..................................................................................... 74
Table 12-1: List of Independent Samples and Results, October 2016 ............................................................. 76
Table 25-1: Ore Deposit Models Applicable to Las Lomas Project .................................................................. 89
Table 26-1: Summary of Costs for Recommended Work ................................................................................. 92
Table 28-1: Definition of Terms ........................................................................................................................ 98
Table 28-2: Abbreviations ............................................................................................................................... 100

List of Figures
Figure 4-1: Location Map .................................................................................................................................... 7
Figure 4-2: Land Tenure Map ........................................................................................................................... 13
Figure 4-3: Location of Campesino Communities and the Plexmar Concessions ........................................... 15
Figure 5-1: View of the Physiography of the Tomapampa Area....................................................................... 20
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Figure 5-2: View of the Physiography of the Sapillica Area ............................................................................. 21
Figure 5-3: Climograph of Las Lomas District .................................................................................................. 22
Figure 6-1: Hans Prospect Geology and Hydrothermal Alteration ................................................................... 23
Figure 6-2: Hans Prospect Au Geochemistry – Rock Sampling....................................................................... 24
Figure 6-3: Hans Prospect Ag Geochemistry – Rock Sampling....................................................................... 25
Figure 6-4: Hans Prospect Cu Geochemistry – Rock Sampling ...................................................................... 25
Figure 6-5: Hans Prospect Mo Geochemistry – Rock Sampling ...................................................................... 26
Figure 6-6: Hans Prospect Zn Geochemistry – Rock Sampling ....................................................................... 26
Figure 7-1: Regional Geology Map ................................................................................................................... 29
Figure 7-2: Stratigraphy of the Lancones Basin (Eastern) ............................................................................... 31
Figure 7-3: Local Geology Map ........................................................................................................................ 34
Figure 7-4: Bolsa del Diablo Geology Map ....................................................................................................... 36
Figure 7-5: Hans Geology Map ........................................................................................................................ 38
Figure 7-6: Sapillica Geology Map ................................................................................................................... 39
Figure 7-7: Tomapampa Geology Map ............................................................................................................. 40
Figure 7-8: Artisanal Exploitation of High Grade Au Stockwork and Veins in Bolsa del Diablo ....................... 41
Figure 7-9: Mineralized Vein - Sapillica ............................................................................................................ 43
Figure 8-1: Anatomy of a Telescoped Porphyry Cu System, showing spatial interrelationships of a centrally
located porphyry Cu ± Au ± Mo deposit in a multiphase porphyry stock and its intermediate host rock45
Figure 8-2: Generalized Sketches, showing the relation of fluid types to alteration zoning in the two styles of
epithermal deposits.............................................................................................................................. 46
Figure 8-3: Schematic Cross Section of a VMS of the Modern Trans-Atlantic Geothermal (TAG) Sulfide
Deposit on the Mid-Atlantic Ridge, from Hannington and others (1988), Galley and others (2007),
Modified from Hannington and others (2005). ..................................................................................... 49
Figure 9-1: Magnetic Responses, Hans and Bolsa del Diablo Areas .............................................................. 56
Figure 9-2: Au and Ag Rock Sampling Results - Bolsa del Diablo ................................................................... 58
Figure 9-3: Cu and Mo Rock Sampling Results - Bolsa del Diablo .................................................................. 59
Figure 9-4: Au, Ag, As, Cu, Pb, Zn Profiles of 50 Vein-Rock Samples of Bolsa el Diablo (Los Incas 2009) ... 60
Figure 9-5: Au and Ag Rock Sampling Results - Hans .................................................................................... 61
Figure 9-6: Cu and Mo Rock Sampling Results - Hans .................................................................................... 62
Figure 9-7: Au, Ag, Cu, As, Pb, Zn and Mo Profiles of 130 Vein-Rock Samples of Hans (Los Incas 2009) ... 63
Figure 9-8: Profiles of Au, Ag, Cu, As, Pb, Zn and Mo for 61 Rock Samples of Hans (Los Incas 2009) ......... 64
Figure 9-9: Au and Ag Rock Sampling Results - Sapillica ............................................................................... 65
Figure 9-10: Cu Rock Sampling Results - Sapillica .......................................................................................... 66
Figure 9-11: Profiles of Au, Ag, Cu, Pb, Zn and As for 78 Vein -Rock Samples of Sapillica, San Miguelito
(2014) .................................................................................................................................................. 66
Figure 9-12: Cu and Zn Rock Sampling Results – Tomapampa ...................................................................... 67
Figure 9-13: Au and Ag Rock Sampling Results – Tomapampa ...................................................................... 68
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Figure 9-14: Profiles of Cu, Zn, Fe, Au, Ag, and Pb for 31 Rock Samples of Tomapampa, San Miguelito
(2014) .................................................................................................................................................. 69
Figure 9-15: Profiles of Cu, Zn, Fe, Au, Ag, and Pb for 4 Vein -Rock Samples of Tomapampa, San Miguelito
(2014) .................................................................................................................................................. 69

Appendices
Appendix A: Certificate of Qualified Person
Appendix B: Assay Certificates for the Validation Samples

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1 Summary
This report was prepared as a Prospectus-level Disclosure National Instrument 43-101 (NI 43-101)
Technical Report (Technical Report) for Plexmar Resources Inc. (Plexmar) by SRK Consulting
(U.S.), Inc. (SRK) on the Las Lomas Project (Las Lomas, Las Lomas Project or the Project).
1.1 Property Description and Ownership
The Las Lomas Project is located in the Department of Piura in northern Perú, near the Ecuador
border, on the west side of the Andes Cordillera and consists of 43 existing or pending mining
concessions totalling 31,288 hectares (ha). Utilizing the WGS-84 datum, the property is roughly
centred on 4°34’48’’ south latitude, 80°06’32’’ west longitude or UTM Projection PSAD56, Zone 17
Southern Hemisphere, 601,470 east and 9,497,760 north.
Plexmar, through its Peruvian subsidiary Minera San Miguelito S.A.C. (San Miguelito) owns 100% of
the mining rights of seven concessions. Additionally, Minera Ate S.A.C. (Minera Ate), a Peruvian
corporation owned by two Peruvian nationals, owns 100% of the direct mining rights of twenty-six
concessions of the Las Lomas Project. Of the remaining seven concessions forming part of the Las
Lomas Project (the Pending Concessions), four have been formally granted by the government and
two have been awarded to Minera Ate, but are in the process of being formally granted by the
government. The remaining concession forming part of the Pending Concessions is expected to be
auctioned by the government within the next twelve months. Minera Ate is currently the only party
that has been granted the right to participate in the auction and is expected to bid on such
concession. Pursuant to an option agreement, San Miguelito has the right to acquire from Minera Ate
the Pending Concessions (if and when such concessions are registered to Minera Ate and subject to
the receipt of the required Supreme Decree) in exchange for the payment of US$180,000.
The mining concessions are located some 90 kilometers (km) NE of Piura city and 900 km NNW of
Lima, near the Ecuador border.
1.2 Geology and Mineralization
Las Lomas is located in a region recognized for its mineral potential, where artisanal exploitation of
gold has been carried out for decades in the province of Ayabaca, including the Project concessions
in Pampalarga, San Sebastian and Sapillica. The Tambo Grande Cu-Zn-Au-Ag volcanogenic
massive sulfide (VMS) deposit is located 50 km southwest of the Las Lomas Project.
The geological and structural setting and certain features of the mineralization suggest that the
existing mineralization in the project may be related to ore deposit models like epithermal gold, ±Cu-
±Au-±Mo porphyry associated with the intermediate composition intrusions related to the subduction
process, and VMS linked to the submarine rift environment exposed in the area. The characteristics
of those deposit models can guide the understanding of the mineralization and the exploration works.
The overlap of different pulses and styles of mineralization must be considered. Table 1-1 presents
the ore deposit models that may be applicable to Las Lomas Project and the commodities of interest.
The Las Lomas area is sizeable, and hosts multiple areas of interest that appear to be related to
various ore deposit models.

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Table 1-1: Ore Deposit Models Applicable to Las Lomas Project
Area Ore Deposit Models Commodity of Interest
Epithermal Gold
Bolsa del Diablo Au, Ag, Cu
±Cu-±Au-±Mo Porphyry
Epithermal Gold
Hans Au, Ag, Cu, Mo
±Cu-±Au-±Mo Porphyry
Tomapampa VMS Cu, Zn, Pb, Ag, Au
Sapillica Epithermal Gold Au, Ag, Pb

Mineralization found in the Project area is hosted in volcaniclastic rocks of a submarine rift
environment that outcrop extensively in the Lancones basin, as well as in acidic-intermediate
intrusive rocks that cut the volcaniclastic sequence. Mineralization locally exhibits marked structural
control.
In Bolsa del Diablo, the mineralization is found in structurally controlled gold-bearing quartz veins,
disseminations and stockwork veins hosted by the volcaniclastic rocks and the intrusives of Angolos.
Argillization, silicification (locally vuggy silica) are the dominant forms of hydrothermal alteration
observed in the rocks. The characteristics observed suggest that mineralization may be epithermal,
possibly related to a Cu± Au ±Mo porphyry system.
Similar to Bolsa del Diablo, in the Hans area gold-bearing quartz veins are observed hosted in
volcaniclastic and intrusive rocks. Mineralization is associated with disseminated pyrite and locally
stockwork quartz-pyrite veins are present. Evidence of potassic alteration are observed in the
Cascajo Blanco porphyry. Silicification, argillization and sericitization are observed in the intrusives.
Unlike Bolsa del Diablo, moderate values of molybdenum are observed in the Cascajo Blanco
porphyry and the surrounding volcaniclastic rocks.
In Sapillica, fracture-filling veins with quartz-pyrite-oxide carry moderate to very high grades of gold
and silver, accompanied by lead and copper. Pyrite is the main sulfide. Argillization and sericitization
are observed in veins and as halos of around the veins. The mineralization features exhibit some
characteristics of a low sulfidation epithermal deposit.
In Tomapampa, the volcaniclastic rocks are locally propylitically-altered (chlorite-epidote-calcite-
pyrite). Quartz-sericite-oxide and oxide-kaolinite-pyrite alteration (Silex) is locally observed in near
surface volcaniclastic rocks. In the vicinity, a VMS deposit has been exploited at a small scale mine,
which exports the massive sulfides (RoM) to China.
1.3 Status of Exploration, Development and Operations
The Project is in the early stages of exploration. Exploration activities carried out in the Project
included airborne magnetic surveys, geological mapping and rock sampling. The areas of Bolsa del
Diablo and Hans have been the focus of a number exploration campaigns carried out by Plexmar
and by the previous owners. In Tomapampa and Sapillica, exploration activities have been more
limited. Additional work is required to improve the knowledge and understanding of the mineralization
found in the project.
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1.4 Conclusions and Recommendations
1.4.1 Exploration
SRK is of the opinion that the exploration methods used have been appropriate and have resulted in
the discovery of important evidence of gold mineralization on the property. However, improvements
can be implemented in several aspects of the program, including data management, documentation,
database administration and the current quality assurance/quality control (QA/QC) program.
Maintaining and improving the relationship with the Campesino communities settled in the
prospective areas will be essential to the further advancement of the Project. This includes obtaining
the formal agreements necessary to access the Plexmar concessions.
SRK recommends a two phase exploration program to improve understanding of the economic
mineral potential of the project.
• Phase I:
Implement a formal Social Responsibility program to ensure future access to the
o
concessions;
Complete detailed geological mapping, focused on Bolsa del Diablo, Hans, Tomapampa
o
and Sapillica;
Perform geochemical sampling, including rock, soils and sediment sampling; and
o
Complete geophysical surveys in the Bolsa del Diablo, Hans and Tomapampa areas
o
using the appropriated technique.
• Phase II:
First-round drilling of 5,000 m in the areas of Bolsa del Diablo and Hans.
o
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