EXHIBIT 10.26 


 


P1177


 


AN
AGREEMENT FOR A


HELICOPTER-BORNE
GEOPHYSICAL


SURVEY
IN MEXICO


 


 


for:


 


California
Gold Corporation


4515
Ocean View Blvd., Suite 305


La
Cañada, CA 91011


USA


 


by:


 


MPX
Geophysics Ltd.


25
Valleywood Drive, Unit # 14


Markham,
ON, L3R 5L9, CANADA


Tel.:
905-947-1782


Fax.:
905-947-1784


E-mail:
info@mpxgeophysics.com


 


 


November
4th, 2011





 






    	 



    	 



    

  


This
AIRBORNE GEOPHYSICAL SURVEY AGREEMENT (which, together with the Attachments hereto, is hereinafter collectively referred
to as this “Agreement”) is made and entered into effective as of the 4th day of November, 2011 (the
“Effective Date”), by and between:


 


California
Gold Corporation


4515
Ocean View Blvd., Suite 305


La
Cañada, CA 91011


USA 


 


Hereinafter
shall be called the “Client"


 


OF
THE FIRST PART


 


-
and -


 


MPX
GEOPHYSICS LTD.


25
Valleywood Drive, Unit # 14


Markham,
ON


Canada
L3R 5L9


 


A
company incorporated under the laws of Canada, hereinafter called "MPX" 


 


OF
THE SECOND PART


 


WHEREAS
MPX has equipment and personnel capable of performing aerial surveys over land which the Client wishes to have surveyed
and known as the Auro Tellurio Project in the State of Sonora, Mexico.


 


AND
WHEREAS the Client wishes to have MPX perform aerial surveys over such land;


 


NOW
THEREFORE WITNESSETH that in consideration of the mutual covenants the Parties hereto agree as follows:


 


		1.	The
                                                          term "Survey Area" means subject to paragraph 2 hereof those
                                                          areas shown in Schedule B hereof. The definition shall be equally applicable
                                                          to both singular and plural forms.



 


		2.	MPX
                                                          hereby undertakes to use its best efforts to cause to be carried
                                                          out at its expense an airborne geophysical survey (hereinafter referred
                                                          to as the "Survey") over the Survey Areas, under the terms
                                                          of this Agreement. Flying is to be carried out with flight lines being
                                                          in the directions and at the spacing as indicated in Schedule B.



  


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com


  



    	-2-



    	 



    

 


		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011


 


 


		3.	The services
                                                          to be provided by MPX in connection with the Survey shall include
                                                          the following:



 


		(a)	Mobilization
                                                               of its equipment and personnel to the Survey Area



 


		(b)	Data
                                                                                 acquisition as specified in Schedule C.



 


		(c)	Demobilization.



 


		(d)	Computer
                                                                                 processing, as specified in Schedule D.



 


		(e)	Preparation
                                                                                 and delivery to the Client of the products
                                                                                 specified in Schedule E.



 


			



		4.	MPX
                                                          will not divulge any information with respect to the Survey to third
                                                          parties.



 


		5.	The
                                                          Client agrees to pay MPX the aggregate of the amounts
                                                          defined in Schedule A. The payments made by the Client to MPX
                                                          are not subject to abatement, and shall be made as follows:



 


		(a)	For
                                                                                 purposes of this Agreement, all invoices shall
                                                                                 be due for payment upon their receipt by the
                                                                                 Client.



 


		(b)	The
                                                                                 delivery of preliminary or final maps or reports
                                                                                 to the Client is contingent on the full
                                                                                 payment by the Client of all MPX
                                                                                 invoices which are payable.



 


		(c)	In
                                                                                 the event that an amount billed is not paid within
                                                                                 30 days of the payable date, MPX at its
                                                                                 option may in addition to any other remedy reschedule
                                                                                 or cease all further work until payment is received
                                                                                 and may delay the delivery of documents as a
                                                                                 consequence of rescheduling its work flow. In
                                                                                 the event that the said amounts together with
                                                                                 all interest thereon are not paid within 60 days
                                                                                 of the payable date, the amount due for work
                                                                                 completed under this Agreement less any prepayments
                                                                                 will be payable immediately and MPX will
                                                                                 not be obligated to provide further deliveries
                                                                                 under this Agreement until payment in full is
                                                                                 received.



 


		(d)	Until
                                                                                 payment hereunder is received in full the information,
                                                                                 documents and data pertaining to the Survey shall
                                                                                 remain the property of MPX. The ownership
                                                                                 of the information, documents and data will pass
                                                                                 to Client on MPX receiving payment
                                                                                 in full.



 


		6.	The
                                                          Client shall not contest any or all patents relating to the MPX
                                                          System nor be a Party, either directly or indirectly, to any proceeding
                                                          disputing their validity.



 


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com



 



    	-3-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011





 


		7.	The
                                                          following provisions shall apply with respect to the Survey:



 


		(a)	The
                                                                services to be provided by MPX shall be in their capacity
                                                                as principals and not as agents or servants of the Client.



 


		(b)	MPX
                                                                hereby warrants that the Survey and the services to be provided
                                                                in connection therewith will be carried out in a proper and workmanlike
                                                                manner, in accordance with current, generally accepted standards
                                                                of the geophysical survey industry. Notwithstanding anything to
                                                                the contrary herein expressly contained or implied, neither MPX
                                                                nor its parent, subsidiary or associated companies shall be
                                                                under any liability to the Client for any damages (including
                                                                consequential damages) whether as the result of acts of omission,
                                                                commission, negligence or otherwise by MPX or these companies,
                                                                their officers or employees, suffered by the Client and
                                                                arising out of the use by the Client or its assigns of
                                                                any information or opinions furnished to the Client hereunder,
                                                                outside of their obligations under the Professional Geoscientists
                                                                Act (Ontario, 2000).



 


		(c)	MPX
                                                                shall be responsible for, and shall hold the Client
                                                                free and harmless from, and hereby indemnifies the Client
                                                                against any and all claims, demands, causes of action, loss, costs,
                                                                damages and expenses (collectively the "Claims") in
                                                                connection with injuries (including death) to any and all persons
                                                                and damage to property sustained directly from the performance
                                                                of the Survey by MPX, its agents, employees and subcontractors.
                                                                The Client shall take no steps, directly or indirectly,
                                                                to encourage any third party to make a Claim against itself or
                                                                MPX without the prior written consent of MPX. In
                                                                the event such consent is not obtained, MPX shall not be
                                                                responsible to the Client nor shall it hold the Client
                                                                free and harmless nor shall it be required to indemnify the
                                                                Client from and against such Claims arising in connection
                                                                therewith.



 


		(d)	MPX
                                                               shall promptly pay all costs and charges incurred by it in
                                                               connection with



			the
                                                            Survey, and shall not suffer nor permit any liens to attach to any
                                                            property of the Client.



 


		(e)	MPX
                                                               shall obtain, pay for and keep in force during the performance
                                                               of the Survey under this Agreement the following insurance or equivalent
                                                               coverage with policy amounts to be not less than those shown below:



 


	Type
    of Insurance	 	 	Amount	 
	 	 	 	 	 
	Workers' Compensation	 	 	Statutory	 
	 	 	 	 	 
	Employer's Liability and Comprehensive	 	 	 	 
	General Liability (including property
    damage,	 	 	 	 
	and automobile bodily injury and/or
    death)	 	 	CAN$5,000,000.00	 






 


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com



 



    	-4-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011





 


		(f)	The
                                                                                 decision of the pilot of the survey helicopter
                                                                                 not to fly specific flight lines or parts thereof
                                                                                 for reasons of safety shall be conclusive and
                                                                                 binding and the flight lines or parts thereof
                                                                                 not flown as a result of such decision shall
                                                                                 be deducted from the total to be flown.



 


		8.	Force Majeure:



 


		(a)	Except
                                                               for the payment of monies earned to the date of Force Majeure and
                                                               the indemnification obligations arising hereunder, neither Party
                                                               shall be liable for failure to perform any obligations arising
                                                               under this contract, to the extent that any such failure to perform
                                                               is caused by Force Majeure, which is defined below, and which cannot,
                                                               despite best endeavours be remedied by the Party affected.



 


(b)Said
Party shall promptly give notice to the other Party of its inability to perform its obligations in full or in part under this
contract pursuant to the foregoing causes and the obligations of the Party giving such notice, so far as they are affected by
such Force Majeure, shall be suspended during the continuance of any inability so caused, but for no longer period, and the Parties
shall thereupon use their best endeavours to overcome the effects of such Force Majeure situation in all good faith. 


 


		(c)	Force
                                                               Majeure shall mean any human or natural event, beyond the control
                                                               of the Parties, taking place after the execution of this contract,
                                                               unforeseeable and if not so inevitable, including but not bounded
                                                               to acts of God, bad weather and/or storms, geomagnetic disturbances
                                                               (diurnal), fire and/or smoke haze, earthquakes, strikes, lockouts
                                                               or differences with workers, acts of war and/or the public enemy,
                                                               terrorist activity, insurrections, riots, or rules or regulations
                                                               of any governmental authority asserting jurisdiction or control,
                                                               USA government redirection of GPS satellites or laws, sunspot disturbances
                                                               affecting GPS satellites, compliance of which makes continuance
                                                               of operations impossible, breakdown or non-availability of the
                                                               helicopter, which could prevent said Parties, either directly or
                                                               indirectly, partially or totally, to comply with their obligations.



 


		(d)	Barring
                                                               agreement on an equitable financial arrangement, either Party may
                                                               terminate this Agreement if the incident of Force Majeure exceeds
                                                               five (5) days in duration, effective as of the end of the fifth
                                                               day.



 


		9.	If
                                                          MPX defaults in the performance of any obligations on its part
                                                          to be performed, the Client may, without prejudice to any other
                                                          remedy it may have, immediately terminate this Agreement upon notice
                                                          to MPX.



 


		10.	MPX
                                                           agrees that the Client may identify MPX as the survey
                                                           contractor in any news releases by the Client, providing that
                                                           the content of such news releases are first submitted to MPX
                                                           for approval, which approval will not be unreasonably withheld.



 


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com


 



    	-5-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011





 


		11.	For
                                                           the purpose of this Agreement, the addresses of the Parties hereto
                                                           shall, unless and until they are changed by written notification, be
                                                           as follows:



 


MPX
GEOPHYSICS LTD.


25
Valleywood Drive, Unit # 14


Markham,
ON, L3R 5L9


Tel:
905-947-1782


Fax.:
905-947-1784


 


			



California
Gold Corporation


4515
Ocean View Blvd., Suite 305


La
Cañada, CA 91011


USA


 


		12.	This
                                                           Agreement shall be deemed to be a contract made under the laws of the
                                                           Province of Ontario, Canada and for all purposes shall be construed
                                                           in accordance with the laws of the said Province.



 


		13.	(a)	This
                                         Agreement shall be effective as and from the date first mentioned above although actually
                                         executed and delivered after the aforesaid date, subject however to the provisions of
                                         paragraph 14(b).



 


			(b)	It
                                     is recognized that scheduling of the work to be performed by MPX under this Agreement
                                     requires that this Agreement be executed by the Client and delivered to MPX
                                     no later than 11th November 2011. If the Agreement and amount payable on
                                     contract execution are not delivered by this date, then the commencement date and prices
                                     referred to in later paragraphs may not be maintained and this Agreement shall become null
                                     and void at the option of MPX.



 


		14.	(a)	Any
                                     notice or communication required or permitted hereunder shall be in writing and shall be
                                     transmitted to the other Party by Fax, with the original of the transmitted notice or communication
                                     deposited in the mail, postage prepaid, and addressed to the other Party as provided herein.
                                     Alternatively, an established courier service may be used.



 


			(b)	Both
                                     the Client and MPX agree that the reproduction of signatures by way of a telecopying
                                     device will be treated as though such reproductions were executed originals, and each of
                                     the Client and MPX undertakes to provide each other with a copy bearing original
                                     signatures within a reasonable time.



 


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com



 


	 	 	 




    	-6-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011





 


		15.	General
                                                                                                                        Performance
                                                                                                                        Obligations:



 


		(a)	MPX
                                                               shall carry out the Work hereunder with due diligence and in
                                                               a safe, workmanlike manner, according to good international industry
                                                               practice, and wherever possible in accordance with its own HSE
                                                               manual, a copy of which has previously been provided to Client.



 


		(b)	MPX
                                                               agrees that if for any reason it is unable to undertake the
                                                               mobilization of the Equipment and Personnel as obligated under
                                                               this Agreement, it will refund the mobilization and any other payments
                                                               received prior to mobilization, under Schedule A2, in full to the
                                                               Client, with documents to explain its inability to undertake
                                                               the mobilization.



 


		(c)	Client,
                                                               or its representative, may make inspections of MPX’s
                                                               operations to verify that it is correctly fulfilling its obligations
                                                               under this contract.



 


		(d)	Health,
                                                               Safety and Environment: MPX has delivered to the Client
                                                               a copy of its H.S.E. (Health Safety and Environment) manual.
                                                               Regarding Environmental policy, MPX shall fulfill all existing
                                                               security, hygiene and environmental protection rules, either national,
                                                               provincial, municipal or Client related, where applicable.



 


		16.	Confidentiality:



 


		(a)	Other
                                                               than as required by court or government order, all survey data
                                                               and other information obtained by MPX in the conduct of
                                                               the Work, which would be considered trade secrets not otherwise
                                                               available to other persons, shall be held in strict confidence
                                                               and shall not be divulged by MPX to any third party either
                                                               during the term of this Agreement, or thereafter, without written
                                                               permission of the Client.



 


		(b)	The
                                                               geophysical systems, the formulae and software (including source
                                                               codes and object codes) required to reduce the data to profiles
                                                               and maps, etc., and all other technical data relating to same (collectively
                                                               the “Information”), are the proprietary property of
                                                               MPX and are confidential information and may not be disclosed
                                                               by Client to any third party or used by Client for
                                                               any other purpose, either during the term of this Agreement or
                                                               thereafter without the written permission of MPX, which
                                                               permission will not be unreasonably withheld. The term “Information”
                                                               does not include information which (i) is or becomes generally
                                                               available to the public other than as a result of a disclosure
                                                               by Client or anyone to whom Client transmits the
                                                               Information, (ii) was known to Client or in Client’s
                                                               possession prior to the date it was disclosed to Client,
                                                               or (iii) is or becomes available to Client on a non-confidential
                                                               basis from a source other than MPX or its affiliates, employees,
                                                               agents, representatives or advisors, provided that such source
                                                               is not known to Client to be bound by a confidentiality
                                                               agreement with or other obligation of secrecy to the MPX
                                                               or its affiliates, employees, agents, representatives or advisors
                                                               or another party.



 



{00140175.1 / 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com



 



    	-7-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011





 


		17.	Client’s
                                                                                                                        Representatives:



 


		(a)	The
                                                               Client may designate, in writing, one or more Representatives
                                                               who shall, at all times, have complete access to the Work site
                                                               for the purpose of observing and inspecting the Work performed
                                                               by MPX. Such Representative(s) shall be empowered to act
                                                               on behalf of the Client in all matters relating to MPX's
                                                               performance of the Work and shall, at all times, have complete
                                                               access to MPX's facility in Markham, Canada, for the purpose
                                                               of observing and inspecting the Work performed by MPX. Such

                                                               Representative or Representatives shall be empowered to act on
                                                               behalf of the Client in all matters relating to MPX's
                                                               performance of the Work. Such Representative shall also have the
                                                               right to designate additional flight lines to be flown during the
                                                               performance of the survey, by giving written instructions to MPX's
                                                               onsite Project Manager. Any such modifications will be given to
                                                               MPX in a timely manner so as to facilitate the efficient
                                                               collection of data.



 


		18.	Care
                                                                                                                        of Client's
                                                                                                                        Material
                                                                                                                        and Information:



 


		(a)	If
                                                                                 the Client provides material and/or information
                                                                                 to MPX:



 


		·	MPX
                                                                                                              agrees to perform
                                                                                                              a visual inspection
                                                                                                              of all Client’s
                                                                                                              material delivered
                                                                                                              into MPX’s
                                                                                                              possession, if any,
                                                                                                              and shall notify
                                                                                                              Client’s
                                                                                                              Representative of
                                                                                                              any apparent defects.
                                                                                                              MPX shall
                                                                                                              not be liable for
                                                                                                              any loss or damage
                                                                                                              resulting as a direct
                                                                                                              consequence from
                                                                                                              latent defects,
                                                                                                              duly notified as
                                                                                                              per the above phrase,
                                                                                                              in Client’s
                                                                                                              material used by
                                                                                                              MPX.



 


		·	MPX
                                                                                                              shall exercise
                                                                                                              reasonable and prudent
                                                                                                              care in the use
                                                                                                              of material furnished.



 


		·	Upon
                                                                                                              the expiration or
                                                                                                              termination of this
                                                                                                              Agreement, MPX
                                                                                                              shall return
                                                                                                              all material and
                                                                                                              information received
                                                                                                              by MPX from
                                                                                                              the Client.
                                                                                                              



 


		19.	Independent
                                                                                                                        Relationship:



 


		(a)	This
                                                               agreement is not intended to create, nor shall it be construed
                                                               to create, between the Client and MPX or any
                                                               of MPX’s subcontractors, if any, any relationship
                                                               of employer-employee, master servant agency, partnership or joint
                                                               venture.



 


		(b)	In
                                                               the performance of this work, MPX is an independent contractor,
                                                               and shall control the performance of the details of the work, and
                                                               shall be responsible for the results. The Client shall have
                                                               the right, however, to supplement by written notice, the work objectives,
                                                               as specified herein, and Client reserves the rights of observation
                                                               and inspection to secure satisfactory completion of the work. The
                                                               observation by Client’s representatives at the work
                                                               site shall not relieve MPX from MPX’s
                                                               obligations and responsibilities hereunder.



 


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com



 



    	-8-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011





 


		20.	The
                                                           Client shall not assign this Agreement without the consent of
                                                           MPX except to a parent, subsidiary or related corporation, and
                                                           no assignment shall be made until the assignee shall have agreed in
                                                           form satisfactory to MPX to be bound by the terms and provisions
                                                           of this Agreement. Subject to the foregoing limitations as to assignment,
                                                           this Agreement shall be binding upon and shall enure to the benefit
                                                           of the Parties hereto and their respective successors.



 


		21.	Waivers:
                                                                                                    It is fully understood and
                                                                                                    agreed that none of the terms
                                                                                                    of this Agreement shall be
                                                                                                    considered as waived by either
                                                                                                    Party unless the same is done
                                                                                                    in writing by the Party waiving
                                                                                                    such right. Further, failure
                                                                                                    by either Party to enforce
                                                                                                    any rights shall not waive
                                                                                                    those, or other rights.



 


 


		22.	Entire
                                                                                                    Agreement: This Agreement
                                                                                                    contains the entire Agreement
                                                                                                    between the Parties 



			and
                                                        supersedes and replaces any oral or written communications heretofore
                                                        made between the Parties relating to the Work.



 


		23.	Severability:
                                                                                                    If any of the terms or conditions
                                                                                                    of this agreement are found
                                                                                                    to be invalid, illegal or
                                                                                                    unenforceable by a court of
                                                                                                    competent jurisdiction, the
                                                                                                    remaining terms and conditions
                                                                                                    of this agreement shall stay
                                                                                                    in full force and effect.



 


		24.	Successors
                                                                                                    and Assigns. This Agreement
                                                                                                    shall enure to the benefit
                                                                                                    of, and shall bind the permitted
                                                                                                    successors and assigns of
                                                                                                    the Parties.



 


		25.	Law
                                                                                                    and Arbitration: 



 


		a.	The
                                                                                                       laws of the Province of
                                                                                                       Ontario, Canada shall govern
                                                                                                       the validity, construction,
                                                                                                       interpretation, and effect
                                                                                                       of this Agreement, excluding
                                                                                                       any choice of the law rules
                                                                                                       that would otherwise require
                                                                                                       the application of laws
                                                                                                       of any other jurisdiction.



 


		b.	All
                                                                                                       disputes arising from or
                                                                                                       in connection with this
                                                                                                       Agreement shall be finally
                                                                                                       settled under the Commercial
                                                                                                       Arbitration Rules (the
                                                                                                       “Rules”) of
                                                                                                       the Canadian Arbitration
                                                                                                       Association by three arbitrators
                                                                                                       appointed in accordance
                                                                                                       with the said Rules. The
                                                                                                       place of arbitration shall
                                                                                                       be the City of Toronto,
                                                                                                       Ontario. In the event of
                                                                                                       an arbitration proceeding
                                                                                                       taking place, the Parties
                                                                                                       agree to abide by any decisions
                                                                                                       and /or obligations imposed
                                                                                                       by the Arbitration Court.
                                                                                                       



  


		26.	Clerical:
                                                                                                    All headings herein are intended
                                                                                                    for convenience only and do
                                                                                                    not affect the meaning or
                                                                                                    interpretation of this Agreement.



 


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com



 




    	-9-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011





 


		27.	Acceptance:
                                                           In entering into this contract, the Parties agree to all of the above
                                                           terms as well as those given on the Attachments and Appendices to this
                                                           Agreement, and in witness of this Agreement, the Parties have caused
                                                           two (2) copies of this contract to be signed by their authorized signing
                                                           officer, one (1) copy to be retained by the Client and one (1)
                                                           copy to be retained by MPX.



 


	California
    Gold Corp.	 	MPX
    Geophysics Ltd.
	 	 	 
	Per:	 	Per:
	 	 	 
	 	 	 
	 	 	 
	Name:	 	Daniel  McKinnon
	Title:	 	President


 


Dated:


 


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com



 






    	-10-



    	 



    
 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011





 





SCHEDULE
A


PRICING
AND PAYMENT


 


SCHEDULE
B


SURVEY
AREAS


 


SCHEDULE
C


HELICOPTER-BORNE
MAGNETIC / RADIOMETRIC SURVEY


DATA
ACQUISITION


 


SCHEDULE
D


QUALITY
CONTROL/ DATA PROCESSING


 


SCHEDULE
E


PRODUCTS
FOR DELIVERY


 


SCHEDULE
F


IAGSA
SURVEY CONTRACT ANNEX


 


List
of Figures


 


	Figure 1:  Proposed
    Flight Path on Elevation Map.	16
	Figure 2:  Location map of
    the Project Area provided by Google Earth.	17
	Figure 3:  Proposed helicopter
    with fixed boom.	18
	Figure 4:  Scintrex CS-3
    Cesium Magnetometer	21
	Figure 5:  PC based acquisition
    system for data recording	22
	Figure 6:  Navigation screen
    and radar altimeter mounted for pilot guidance	23
	Figure 7:  A GSM19 base magnetometer
    with integrated GPS	25


 


List
of Tables


 


	Table 1: Survey options
    for a geophysical survey in Mexico.	12
	Table 2: Details of Survey Area.	15
	Table 3: Survey Block Coordinates.	15
	Table 4: System component sample
    rates	21
	Table 5: Sample Regions of Interest
    (ROI)	24


 


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com



 



    	-11-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011


 


Table
1: Survey details for a geophysical survey in Mexico.


 


	Survey Details	 	Total
    Line-km	 	 	Rate
    
($/km)	 	 	Mobilization
    & Demobilization	 	 	Total	 
	Magnetics
    & Radiometrics	 	 	459	 	 	$	140.00	 	 	$	5,000.00	 	 	$	69,260.00	 



 


SCHEDULE
A-1


 


PRICING
AND PAYMENTS 


 


	A1.	 	Prices	 	 	 
	 	 	 	 	 	 	 
	1.	 	Mobilization & Demobilization
    of the Aircraft, Equipment and	 	$	5,000.00	 
	 	 	Personnel within Mexico.	 	 	 	 
	 	 	 	 	 	 	 
	2.	 	Data Acquisition/Data Processing:	 	 	 	 
	 	 	·    459 line-km of helicopter-borne
    survey 	 	$	140.00/line-km	 
	 	 	 	 	 	 	 
	3.	 	Daily Standby Rate	 	$	1,500.00/day	 
	 	 	 	 	 	 	 
	4.	 	Summary
    of Prices:	 	 	 	 
	 	 	The charges may be summarized as follows:	 	 	 	 
	 	 	·  Mobilization & Demobilization.	 	$	5,000.00	 
	 	 	·  Helicopter-borne
    Survey Data Acquisition & Processing,	 	 	 	 
	 	 	   459
    line-km x $140.00	 	$	64,260.00	 
	 	 	 	 	 	 	 
	 	 	Estimated
    Total:	 	$	69,260.00	 




 


		5.	Price
                                                                            per line-km for additional flying in the general area
                                                                            of the Survey/line-km/TBD



 


		6.	Taxes:
                                                                            The prices given above do not include any Mexican
                                                                            withholding taxes or other taxes. Any such taxes that
                                                                            may be imposed will be the responsibility of the client
                                                                            to pay.



 


		7.	In
                                                                                                              case of Force
                                                                                                              Majeure, the
                                                                                                              MPX crew standby
                                                                                                              charge of $1,500
                                                                                                              per day plus 2 hour
                                                                                                              helicopter minimum
                                                                                                              charge of $3,600
                                                                                                              per day will be
                                                                                                              charged, up to a
                                                                                                              maximum of 14 days,
                                                                                                              in addition to the
                                                                                                              kilometres flown
                                                                                                              up until the force
                                                                                                              majeure, plus the
                                                                                                              complete mobilization,
                                                                                                              demobilization &
                                                                                                              security analysis
                                                                                                              charge. The
                                                                                                              number of days so
                                                                                                              billable will depend
                                                                                                              on the number of
                                                                                                              accumulated helicopter
                                                                                                              hours flown under
                                                                                                              the contract, on
                                                                                                              any incurred damages
                                                                                                              from terrorist acts
                                                                                                              or other similar
                                                                                                              incidents, and how
                                                                                                              rapidly the crew
                                                                                                              and helicopter can
                                                                                                              be redeployed to
                                                                                                              another survey.



 


Please
note that the number of days charged for the helicopter will depend on the number of helicopter hours needed to meet the monthly
minimum helicopter hours, adjusted for the hours actually flown up until the Force Majeure event, and any subsequent utilization
of the helicopter in that monthly period. In this case, the helicopter contract is based on 50 hour minimums per month.


 


If
damages are incurred to the helicopter and or survey equipment by terrorist acts or other similar incidents, then the days will
be billable during repairs up to a maximum of 14 days.


 


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


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    	-12-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011





 


A2.       Payments



 


The
price for the Survey under this agreement is estimated at $69,260.00 (Sixty nine thousand two hundred sixty dollars),
Subject to this amount, the survey charges referred to in paragraph A1 will be adjusted at the indicated rates if the amount
of surveying in the Survey Area greater than as stated in paragraph A1. Payments described in A2 are deposits for the completion
of work per A1. If there is a Force Majeure, the Client is responsible for payment of the modified pricing as described in Section
A1.7. 


 


The
invoices shall be payable as follows:


 


First
Payment: Payment of fifty per cent (50%) of the Estimated Total survey charge, amounting to $34,630.00 (Thirty four
thousand six hundred thirty dollars) is payable on the signing of the contract.


 


Second
Payment: Payment of twenty five per cent (25%) of the Estimated Total survey charge, amounting to $17,315.00 (Seventeen
thousand three hundred fifteen dollars) is payable on the commencement of the airborne survey flying.


 


Third
Payment: Payment of fifteen per cent (15%) of the Estimated Total survey charge, amounting to $10,389.00 (Ten thousand
three hundred eighty nine dollars) plus any standby charges is payable on the completion of
the flying and prior to the delivery of the Preliminary Products.


 


Fourth
Payment: The remaining ten percent (10%) of the Actual Airborne survey charge estimated at $6,926.00 (Six thousand
nine hundred twenty six dollars) plus any unpaid standby charges to date is payable on completion
of the data processing work and prior to delivery of the Final Products.


 


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
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    	-13-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011





 


A3.       Standby



 


		1.	The
                                                                       standby will be charged at a rate of US $1,500.00 per day.
                                                                       



 


		2.	Client*.
                                                                Will be liable for payment of the standby rate given above in
                                                                the event that MPX’s personnel, aircraft and equipment are
                                                                available and operational, but the work is unable to be performed
                                                                due to reasons beyond the control of MPX. A standby day is defined
                                                                as one wherein less than 100 line-km of production flying is achieved
                                                                and production is aborted or limited due to aforementioned conditions,
                                                                including without limitation: acts of God, bad weather and/or
                                                                storms, geomagnetic disturbances (diurnal) caused by solar flares;
                                                                war, fire and/or smoke haze; acts of the public enemy, insurrections,
                                                                riots, or rules or regulations of any governmental authority asserting
                                                                jurisdiction or control, USA government redirection of GPS satellites
                                                                or laws, sun spot disturbances affecting GPS satellites, compliance
                                                                with which makes continuance of operations impossible.



 


A4.        Terms
of Payments


 


All
prices in this contract are given in dollars (USD). MPX will issue invoices for payment as required, as per Section A2
above. These invoices will be due for payment upon their receipt by the Client.


  


Payments
should be made by telegraphic bank transfer to MPX's bank, at the address indicated below:


 


Royal
Bank


260
East Beaver Creek Rd


Richmond
Hill, Ontario


L4B
3M3


USD
Account # 4015095


Swift
Code: ROYCCAT2


Transit
or Branch # 6032


Institution
# 003


 


 


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


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    	-14-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011





 


SCHEDULE
B


SURVEY
AREAS 


 


B1.        Outline
of the Survey Area


 


The
Survey will be conducted over one block in the Auro Tellurio Project in Sonora, Mexico. The survey block is outlined in the following
tables and on the location maps to be found below:


 


Table
2: Details of Survey Area.


 


		 	Flight
    Lines	 	Tie
    Lines	 	Total	 
	Survey
    Details	 	Direction	 	Spacing	 	 	Line-km	 	 	Direction	 	Spacing	 	 	Line-km	 	 	line-km	 
	Survey
    Area Detail
	Auro
    Tellurio	 	11°	 	 	200m	 	 	 	411	 	 	101°	 	 	2000m	 	 	 	48	 	 	 	459	 




 


Table
3: Survey Block Coordinates 


.


	Auro
    Tellurio Project
	NAD27
    UTM Zone 12N	 	 	WGS84 UTM Zone 12N	 	 
	Corner	 	 	Easting	 	 	 	Northing	 	 	 	Corner	 	 	 	Easting	 	 	 	Northing	 
	1	 	 	621048	 	 	 	3288524	 	 	 	1	 	 	 	620990	 	 	 	3288720	 
	2	 	 	630331	 	 	 	3286674	 	 	 	2	 	 	 	630273	 	 	 	3286916	 
	3	 	 	628648	 	 	 	3278329	 	 	 	3	 	 	 	628590	 	 	 	3278526	 
	4	 	 	619304	 	 	 	3280129	 	 	 	4	 	 	 	619246	 	 	 	3280326	 




 



{00140175.1
                                                                                              / 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


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    	-15-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011





 


 


 


  


Figure
1: Proposed Flight Path on Elevation Map.


  


{00140175.1
/ 0899-001}


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Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


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    	-16-



    	 



    

  


		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011





 


 


 








Figure
2: Location map of the Project Area provided by Google Earth.


  


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


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    	-17-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011





 


 





SCHEDULE C 





HELICOPTER
MAGNETIC/RADIOMETRIC SURVEY


DATA
ACQUISITION


 


		C1.	Helicopter



 


MPX
will fly the survey using a Bell Jet Ranger BII with fixed boom. The aircraft will be equipped by MPX with the geophysical
instrumentation described below in Section C6. This aircraft will have the necessary range and flight duration to safely and efficiently
fly this type of survey.





 





 


Figure
3: Proposed helicopter with fixed boom.  


 



{00140175.1
                                                                   / 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


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    	-18-



    	 



    

  





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011


 


C2.
        Services/Obligations of MPX Geophysics Ltd.


 


		1.	Preparation
                                                              of maps and other data prior to flying.



		2.	Provision
                                                              of the necessary qualified personnel required to complete the survey.



		3.	Provision
                                                              of the aircraft, crew, crew accommodations and JETA fuel for the
                                                              aircraft at the base of operations and within the survey area in
                                                              order to reduce the amount of ferry time to and from the survey
                                                              area between survey flights.



		4.	Supply
                                                              of the technical equipment with spares necessary to fly the survey
                                                              in an expeditious manner.



		5.	Processing
                                                              of the geophysical data in the field and at MPX’s data
                                                              processing facility.



		6.	Preparation
                                                                                and delivery to the Client of all the products
                                                                                specified in Schedule E.



  


		C3.	Services/Obligations
                                                                  of California Gold Corp.



			 



		1.	Provide
                                                            one crew member to assist in community liaison and logistics within
                                                            the base of operations and the survey areas.



  


		C4.	Survey
                                                                  Scheduling 



 


		1.	It
                                                              is currently anticipated that the aircraft and crew will be onsite
                                                              in the Auro Tellurio survey area on or about the 3rd
                                                              week of November 2011, depending on completion of currently scheduled
                                                              projects.



 


		2.	The
                                                              survey equipment has been installed into the Helicopter at the hanger
                                                              in Chihuahua, is currently on another project, and will be mobilized
                                                              to the survey area.



 


		3.	It
                                                              is anticipated that survey operations for the Auro Tellurio Project
                                                              will require two (2) to three (3) days to complete dependent on
                                                              the weather conditions.



 


		4.	Preliminary
                                                              products to be delivered within 5-7 days of survey completion.



 


		5.	Final
                                                              products to be delivered within Eight (8) weeks of Client
                                                              acceptance of preliminary products, or earlier if possible.



  


		C5.	Survey
                                                                  Bases / Fuel for the Helicopter



 


The
base of operations for the Auro Tellurio Project will be the town of Moctezuma, Sonora. The helicopter LZ will also be established
there. Fuel for the aircraft will also be available at the base of operations, and also delivered in fuel truck to remote fuel
cache locations in the project area.


 


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


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    	-19-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011


 


C6.Flight
Specifications


 


C6.1.
   Flight Lines


 


Line
directions and line spacings are specified in Schedule B, but may be subject to change and will therefore be confirmed between
MPX's and Client's representative immediately prior to the commencement of the survey operations. Any such changes
will not unduly effect efficient collection of data.


 


C6.2.
    Terrain Clearances


 


Optimum
terrain clearances for the helicopter and instrumentation during normal survey flying are:


 


			



	Helicopter	-	70 metres
	Magnetometer	-	70 metres
	Gamma Spectrometer	-	70 metres


 


The
pilot will make every sensible effort to fly accurate terrain clearances, however, it is accepted that aircraft terrain clearance
may vary, based on the pilot's judgement of safe flying conditions around man-made structures or in rugged terrain where aviation
laws may require a higher flight altitude. Taking into account the above safety considerations and pilot judgement, MPX will
do its best to conduct the survey with an altitude tolerance of +-20m, trying not to exceed +/- 20m over a distance of more than
1 km.


 


C6.3.
    Airspeed


 


Normal
aircraft airspeed will be approximately 70kts, but this may vary in areas of rugged terrain. With a sampling rate of 1 second,
spectrometer measurements are acquired approximately every 36 metres along the survey line. With a sampling rate of 10 times per
second, magnetometer measurements are acquired every 3.6 metres along the survey line.


 


C6.4.
    Magnetic Diurnal


 


Flight
lines, or portions thereof, will be reflown if the magnetic diurnal exceeds 12 nT in a straight-line chord over 5 minutes. Survey
data acquisition will be stopped altogether in the case of severe magnetic diurnal activity.


 


C6.5.
     Reflights


 


Reflights
will be attempted whenever survey lines or part survey lines are noted in the field to be beyond the agreed tolerances.


 


The
flight lines will not deviate from the intended flight path by more than 50% of the nominal line spacing over a distance of more
than 1 km. All reflights will cross a minimum of two tie lines.


 


{00140175.1
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Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


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    	-20-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011


 


C6.6.
     Sampling Rates


 


Table
4: System component sample rates.


 


	SYSTEM
    / No. of CHANNELS	 	SAMPLING
    RATES
	Total Field
    Magnetometer (1 channel)	 	0.1 / sec
	Gamma - Ray
    Spectrometer (256 channels plus U, Th, K, TC and cosmic windows)	 	1.0 / sec
	Radar Altimeter 
    (1 channel)	 	0.1 / sec
	Temp and Relative
    Humidity (2 channels)	 	1.0 / sec
	Barometric
    Altimeter (1 channel)	 	0.1 / sec
	DGPS Navigation
    (3 channels)	 	1.0 / sec
	Billingsley
    Fluxgate Magnetometer (3 channels)	 	0.1 / sec


 


C7.Survey
Instruments


 


C7.1.
    Airborne High Sensitivity Magnetometer


 


The
magnetic sensor that will be utilized for the survey is a Scintrex CS-3 high resolution cesium split-beam total-field magnetometer
(see figure 4), which will be installed in a fixed boom. The sampling rate is ten (10) times per second with an in-flight
sensitivity of 0.002 nanoTesla (nT). Aerodynamic magnetometer noise is +/- 0.01 nT. The sensitivity of the magnetometer will be
recorded at 0.002 nT when operated at a sampling rate of 0.1 seconds.





 





 


Figure
4: Scintrex CS-3 Cesium Magnetometer


 


A
Cesium vapour magnetic sensor is a miniature atomic absorption unit, producing a signal whose frequency (Larmor frequency) is
proportional to the intensity of the ambient magnetic field. The unit consists of three main elements; a Cesium vapour lamp, an
absorption cell, and a photosensitive diode.


 


These
components are mounted along a common optical axis within the sensor housing. The electronic support system is mounted at the
rear of the towed bird or 1.5m from the sensor in a fixed boom configuration, transmitting the Larmor signal to a counter in the
data acquisition system then converted the signal to magnetic field strength in nanoTeslas.


 


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Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


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    	-21-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011


 


C7.2.
     PC-based Data Acquisition System


 


Geophysical,
navigation and altimeter data will be recorded by the AGIS data acquisition system in the helicopter, at various recording rates
ranging from 10 Hz to 1 Hz (ten times per second to once per second).


 


Data
will be displayed on the computer LCD display as traces, in simulation of a chart recorder's traces, for verification of functionality
and quality.


 


On
completion of flying, the data recorded will be copied to back-up CD-ROM and transferred to the Field Workstation (described below)
where the data will be retrieved, verified and processed.


 


All
geophysical, positional, and ancillary sensor data measured during the survey are recorded digitally using a high-speed, precision
data acquisition system. Survey data can be monitored on a number of operator-selectable strip-chart traces available on the operators
display. The system does not produce paper charts.





 





 


Figure
5: PC based acquisition system for data recording


 


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    	-22-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011


 


C7.3.
    Radar Altimeter


 


A
Terra TRA-3000/TRI-40 radar altimeter system will record the ground clearance to an accuracy of ±
1.5 m from 12 m – 30.5 m; ± 5% over a range of 30.5 m – 152.4 m; and 7% over a range of 152.4 m – 762
m. 


 


The
altimeter will be interfaced to the data acquisition system with the output sampled at 10Hz, and will be digitally recorded.


 


C7.4.
    Barometric Altimeter


 


A
Setra Model 276 Pressure Transducer (or equivalent) will record the barometric pressure to an accuracy of about 1 ft (30 cm).


 


The
altimeter will be interfaced to the data acquisition system with the output sampled at 10Hz, and will be digitally recorded.


 


C7.5.
    DGPS Navigation System


 


Survey
data positioning and flight line navigation will be derived using WAAS DGPS. Navigation is provided through an electronic pilot
navigation system, a digital screen mounted in the cockpit. The GPS positions are used to provide both aircraft navigation and
survey data location information.


 





 


Figure
6: Navigation screen and radar altimeter mounted for pilot guidance


 


{00140175.1
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Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


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    	-23-



    	 



    
 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011


 


C7.6.
     GRS-10 Spectrometer


 


Pico-Envirotec
GRS-410 multi-channel gamma-ray spectrometer with 16.8 litres “downward looking” NaI sensor, and 4.2 litres “upward
looking” NaI sensor will be installed on the helicopter for the survey.


The
GRS-410 is a self-stabilizing spectrometer, and tracks and corrects for the spectral drift by following a spectral peak, typically
thorium. The standard regions of interest, as listed below, will be recorded and processed. The 256 channel digital data will
be recorded and provided to Client. An example of the standard regions of interest that will be recorded, with window in MeV,
is given in the table below:


 





Table 5: Sample Regions of
Interest (ROI).


 


	Sample of Standard Windows
	Element	 	Approximate 
 Lower Boundary 
 (MeV)	 	 	Approximate 
 Upper Boundary 
 (MeV)	 
	Total Count	 	 	0.41	 	 	 	2.81	 
	Potassium	 	 	1.37	 	 	 	1.57	 
	Uranium	 	 	1.66	 	 	 	1.86	 
	Thorium	 	 	2.41	 	 	 	2.81	 
	Cosmic	 	 	3.00	 	 	 	∞	 


  


 


C7.7.
    Ground Support Equipment


 


The
base station and in-field data processing quality control and quality assurance (QA/QC) system will consist of the following equipment:


 


		·	A
                                                                                                                             Field
                                                                                                                             Workstation,
                                                                                                                             comprising
                                                                                                                             a
                                                                                                                             Pentium
                                                                                                                             PC,
                                                                                                                             a
                                                                                                                             printer
                                                                                                                             and
                                                                                                                             full
                                                                                                                             data
                                                                                                                             processing



			software.
                                                            



		·	A
                                                                                                                             Gem
                                                                                                                             Systems
                                                                                                                             GSM-19TW
                                                                                                                             magnetometer
                                                                                                                             base
                                                                                                                             station,
                                                                                                                             with
                                                                                                                             digital
                                                                                                                             recording,
                                                                                                                             will
                                                                                                                             be
                                                                                                                             utilized
                                                                                                                             on
                                                                                                                             this
                                                                                                                             survey.
                                                                                                                             This
                                                                                                                             magnetometer
                                                                                                                             will
                                                                                                                             be
                                                                                                                             operated
                                                                                                                             continuously
                                                                                                                             throughout
                                                                                                                             the
                                                                                                                             survey
                                                                                                                             operations.
                                                                                                                             The
                                                                                                                             base
                                                                                                                             station
                                                                                                                             will
                                                                                                                             be
                                                                                                                             synchronized
                                                                                                                             with
                                                                                                                             the
                                                                                                                             airborne
                                                                                                                             system
                                                                                                                             by
                                                                                                                             GPS
                                                                                                                             time.
                                                                                                                             The
                                                                                                                             resolution
                                                                                                                             of
                                                                                                                             this
                                                                                                                             magnetometer
                                                                                                                             is
                                                                                                                             0.1
                                                                                                                             nT.
                                                                                                                             During
                                                                                                                             survey
                                                                                                                             operations,
                                                                                                                             the
                                                                                                                             magnetometer
                                                                                                                             will
                                                                                                                             sample
                                                                                                                             at
                                                                                                                             a
                                                                                                                             rate
                                                                                                                             of
                                                                                                                             once
                                                                                                                             a
                                                                                                                             second.
                                                                                                                             Every
                                                                                                                             effort
                                                                                                                             will
                                                                                                                             be
                                                                                                                             made
                                                                                                                             to
                                                                                                                             ensure
                                                                                                                             that
                                                                                                                             the
                                                                                                                             magnetometer
                                                                                                                             sensor
                                                                                                                             is
                                                                                                                             placed
                                                                                                                             in
                                                                                                                             a
                                                                                                                             location
                                                                                                                             with
                                                                                                                             a
                                                                                                                             low
                                                                                                                             magnetic
                                                                                                                             gradient.
                                                                                                                             In
                                                                                                                             addition,
                                                                                                                             it
                                                                                                                             will
                                                                                                                             be
                                                                                                                             sited
                                                                                                                             away
                                                                                                                             from
                                                                                                                             moving
                                                                                                                             ferrous
                                                                                                                             objects,
                                                                                                                             such
                                                                                                                             as
                                                                                                                             vehicles,
                                                                                                                             and
                                                                                                                             electric
                                                                                                                             power
                                                                                                                             transmission
                                                                                                                             lines,
                                                                                                                             such
                                                                                                                             that
                                                                                                                             these
                                                                                                                             sources
                                                                                                                             of
                                                                                                                             man-made
                                                                                                                             noise
                                                                                                                             will
                                                                                                                             not
                                                                                                                             exceed
                                                                                                                             0.1
                                                                                                                             nT



		·	A
                                                                                                                             complement
                                                                                                                             of
                                                                                                                             spare
                                                                                                                             parts
                                                                                                                             and
                                                                                                                             test
                                                                                                                             equipment



 


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com



 






    	-24-



    	 



    
 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011





  














 


Figure
7: A GSM19 base magnetometer with integrated GPS


  


C8.Instrument
Checks, Tests and Calibrations


  


C8.1.
    Manoeuvre noise


 


As
the magnetic gradient sensors, installed in the single sensor fixed boom, are still within the magnetic effect of the aircraft
structure, tests will be conducted prior to the survey to determine the effects of helicopter pitch, roll and yaw. The tests will
be completed at high altitude (ideally 10,000 ft above terrain AGL) over an area of low magnetic gradient by carrying out ±10o
rolls, ±5o pitches and ±5o yaw manoeuvres flown over
periods of at least 4-5 seconds in the same direction as the flight and tie lines. A compensation Figure-of-Merit (FOM) for the
helicopter will be calculated by summing the peak-to-peak amplitudes of the twelve magnetic signatures. The FOM is used as an
indicator of performance and should remain below the industry standard value of 2 nT for the sensor mounted in a helicopter stinger/boom.


 


C8.2.
    Magnetic Heading Effect


 


The
magnetic heading effect will be determined prior to the survey by flying a cloverleaf pattern oriented in the same direction as
the survey lines and tie lines at high level in an area with low magnetic gradient. At least two passes in each direction will
be flown in order to obtain sufficient statistical information to estimate the heading error. The heading error will be determined
at the beginning of the survey, and again if there are any modifications or additions to the aircraft or the equipment installed
in it.


 


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com



 



    	-25-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011


 


C8.3.
     Lag Tests


 


A
lag test will have been performed before the survey to ascertain the time difference between the instrument readings and the operation
of the GPS System. Test lines are flown in two directions at survey altitude across distinct anomalies.


 


These
lag tests were carried out before the start of survey production flights, and will be repeated after any major survey equipment
alteration or replacement has been made.


 


C8.4.
    Altimeter Calibration Checks


 


Checks
of the radar altimeter calibration will have been undertaken before the survey, after installation of equipment in the aircraft.
The calibration is determined by comparing the radar altitude with a suitable reading from the GPS system during a radar “stack”
over the landing pad or a suitable level area where the height above sea-level (ASL) is accurately known.



 


C8.5.
    Gamma-Ray Spectrometry checks and tests 


 


a.Altitude
Attenuation Coefficient


Determination
of the altitude attenuation coefficient will have been undertaken prior to the survey by flying a test line at various altitudes
from 60 m up to 250 m at 30 m intervals above the test line. An airborne calibration range test line should have the following
features: (a) Be relatively flat; (b) Have uniform concentrations of K, U, and Th; (c) Be close to a body of water for measurement
of background (if a suitable body of water exists); (d) Be free of flight restrictions; (e) Be easy to navigate; (f) Be about
8 km long, equivalent to about 150 s flying time at 50m/s; (g) Have no hills within about 1 km of the flight line. The results
of this check will be digitally recorded, and will be compiled into tables and graphs to be presented to the Client in
the final report.  


 


b.Cosmic
Window Calibrations


Cosmic
window calibrations will have been carried out prior to the survey. This is normally performed by flying at various altitudes
over the ocean or any large body of water (250m and from 1,500 m up to 3,500 m at intervals of 300 m), with each altitude flown
for a minimum of 10 minutes. If a large body of water does not exist close to the survey area, this test can be performed over
the ground. The average values of the counts measured in each of the 4 windows (TC, U, Th and K) will be compared against the
average counts for the cosmic window at each of the altitudes where measurements are made. The results of this calibration will
be digitally recorded, and will be compiled into tables and graphs to be presented to the Client in the final report.



 


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com



 



    	-26-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011


 


C8.6.
Gamma-Ray Spectrometry Limitations 


 


The
presence of powerlines and/or steep topography may compromise the quality of the radiometric data. We will proceed and try to
acquire good radiometric data, but we will not be able to guarantee the accuracy of data obtained at large heights above the terrain
(100m+).  Ideally the terrain clearance should be maintained at 70m, but topography and safety considerations may be limiting
factors for this airborne survey.  For example, the presence of electrical powerlines forces the pilot to fly at greater
heights in order to guarantee the safety of all personnel onboard.   


 


C9.
    Safety Procedures


 


For
the duration of the work, MPX will ensure that the work performed is carried out with the utmost regard for safety, and
that all its personnel are fully conversant with safety standards considered normal in the aviation industry. MPX’s
Project Manager will review and establish safety procedures with the Pilot and will specifically ensure that all crew members
are aware of emergency and radio communications procedures.


 


During
the course of the Survey, MPX shall keep the site of any refuelling areas free of accumulations of waste materials, rubbish
or garbage and upon completion of the Survey shall remove all tools, fuel, fuel drums, surplus materials, rubbish and garbage
and leave the refuelling sites in a clean condition.


 


The
pilots are ultimately responsible for the safety of each flight but, if at any time anyone in the aircraft has a question
about location, intention, or safety, the pilot must use every effort to address the concerns and resolve the question, without
compromising the safety of the flight. If a crewmember is not satisfied with the pilot’s response or actions the crew member
may request that the pilot terminate the flight and return to the base of operations. The pilot will comply with this request
and any disagreement or discrepancy will be resolved on the ground.


 


The
Project Manager will conduct weekly safety / operations briefings with the crew. These briefings will consist of the following:


 


		·	Review
                                                                                                               of safety and emergency
                                                                                                               equipment on board
                                                                                                               the aircraft



		·	Review
                                                                                                               of emergency procedures
                                                                                                               and available emergency
                                                                                                               services



		·	Review
                                                                                                               of previous weeks
                                                                                                               work to smooth
                                                                                                               out any rough points
                                                                                                               and/or suggest
                                                                                                               improvements



		·	Review
                                                                                                               of project status
                                                                                                               and operating plans
                                                                                                               for the coming
                                                                                                               week



 


Safety
is a very important aspect of any of MPX’s operations, and nothing will be done to compromise aircraft safety. A
copy of our Health, Safety and Environment (HSE) Manual was previously provided.


 


MPX
is a member of the International Airborne Geophysics Safety Association (IAGSA) www.iagsa.ca and all our survey operations
are conducted to the exacting safety standards of this organisation.


 


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com



 



    	-27-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011





 


C10.
    Personnel


 


MPX’s
Survey crew will consist of at least the following personnel:


 


		1.	An
                                                              experienced Project Manager/Technologist, to install the equipment
                                                              in the helicopter and to maintain it during survey operations, to
                                                              assist the client in survey logistics and operations, to operate
                                                              the Airborne equipment and the field computer workstation to do
                                                              basic QC of the data and to generally assist with the field operations.



 


		2.	An
                                                               experienced helicopter pilot to fly the helicopter during the survey
                                                               operations.



 


The
MPX personnel who will be used on the Survey or to process data will be selected from:


 


	Daniel
    McKinnon	President
	John
    Currie, B.Sc	Business
    Development
	Tonia
    Bojkova, M.Sc.	Data
    Processor/Senior Geophysicist
	Christina
    Clark, M.Sc., P. Geo.	Data
    Processor/Geophysicist
	Patrick
    Healy	Senior
    Project Manager
	Paul Gooch	Project Manager/Technician


   


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com



 



    	-28-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011





 


SCHEDULE
D


QUALITY
CONTROL/ DATA PROCESSING


  


D1.
    QUALITY CONTROL


 


Daily
quality control of newly acquired airborne data will be undertaken in the field by MPX’s technologist, and will also
be transmitted on a daily basis via the internet and an ftp-site to MPX’s data processing facility in Markham.
Quality control information may then be confirmed by MPX and relayed back to the field crew on a regular basis.


 


D2.
    DATA PROCESSING


 


D2.1
    Topographic Base and Title of Survey Area


 


A
topographic base will be prepared for the survey areas from a DTM (or by scanning the relevant topographic maps) covering the
survey area, and plotting the major features (large lakes, major rivers, towns, etc.) as background on to the geophysical maps.
All title blocks and surround data appearing on the base maps will be machine drafted using CAD techniques.


 


D2.2
     Flight Path Compilation


 


The
flight path will be derived from the differentially corrected GPS navigation data.


 


D2.3       Magnetic
Data


 


The
magnetic data are first corrected for diurnal variations, lag and heading effects. The data will be further analyzed using tie-line
data. Control-line levelling is applied to the tie-line data. Final micro-levelling techniques are then applied to the data to
remove minor residual variations in profile intensities. Located and gridded data are generated for the final processed magnetic
data. 


 


The
semi-automated magnetic data levelling system includes: 


 


		1.	Tabulation
                                                               of magnetic data at flight line/tie line intersections, along with
                                                               flight altitude data;



		2.	Network
                                                               analysis of intersection data, based on minimizing square mean
                                                               root of the differences and closure errors, to obtain suggested
                                                               leveling adjustments;



		3.	Manual
                                                                                 analysis of computer suggested corrections, based
                                                                                 on magnetic gradients at the intersections and
                                                                                 the flight altitude differences;



		4.	Application
                                                                                 of leveling corrections; and



		5.	Revision
                                                                                 of leveling corrections using imaging techniques.



 


 


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com



 



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		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011





 


Any
residual, small scale, in-between tie-line leveling errors are removed using micro-leveling techniques. The resultant gridded
magnetic data will be of high image quality and the corresponding located line data will also be prepared.


 


The
regional International Geomagnetic Reference Field (IGRF) 2011 will be computed (based on 2010 calculated model) and removed from
the data using the GPS location at each observation point and epoch appropriate to the current survey.


 


The
total field magnetic data and residual magnetic data grids will be produced using a minimum curvature algorithm. The reduced-to-the-pole
or reduced-to-the-equator grid will be calculated using the residual grid.


 


The
reduced-to-the-pole or reduced-to-the-equator total field magnetic data may be subjected to a variety of filtering techniques
to yield maps and/or images of the following:


 


		·	calculated
                                                                                                               vertical and/or
                                                                                                               horizontal gradient



		·	second
                                                                                                               vertical derivative



		·	magnetic
                                                                                                               susceptibility
                                                                                                               



		·	upward/downward
                                                                                                               continuations



		·	band
                                                                                                               pass filtering



		·	analytical
                                                                                                               signal



 


All
of these filtering techniques improve the recognition of near-surface magnetic bodies or features, with the exception of upward
continuation, which provides a regional view.


 


D2.4
      Radiometric Data


 


The
reduction of radiometric data followed standard processing steps as outlined in the recommendations of IAEA-TECDOC-1363 (Vienne)
– Guidelines for radioelement mapping using airborne gamma – ray spectrometry data.


The
corrections to the gamma-ray spectrometry data involved:


		1.	Correction
                                                                for system dead-time,



		2.	Aircraft
                                                                background and cosmic correction,



		3.	Compton
                                                                (Stripping) correction,



		4.	Attenuation
                                                                correction,



		5.	Convert
                                                                to radioelement






 


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com



 



    	-30-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011


 


D2.5
        Presentation of Data


 


D2.5.1.          Gridding


 


The
corrected geophysical data from each survey line will be interpolated between survey lines using a random gridding method to yield
x-y grid values for an expected standard grid cell size of 0.25 cm at the mapping scale. 


 


D2.5.2.          Contour
and Colour Images


 


Computer
generated contour images of the aeromagnetic data are created from the grid and will be plotted.


 


Colour
images are produced by interpolating the grid down to an appropriate pixel size. The parameter is then incremented with respect
to specific amplitude ranges to provide solid colour "contour" images. Black-line contours are superimposed on the colour
images. Solid colour images of the total magnetic field are particularly useful in defining the lithology of the survey area.


 


Monochromatic
or colour shadow images can be generated by utilizing an artificial sun to cast shadows on a surface defined by the geophysical
grid. There are many variations in the shadowing technique. These techniques may be applied to total field or enhanced magnetic
data, magnetic derivatives, etc. Of the various magnetic products, the shadow of the enhanced magnetic parameter is particularly
suited for defining geologic structures with crisper images and improved resolution.


 



{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com



 



    	-31-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011





 


SCHEDULE
E


PRODUCTS
FOR DELIVERY


 


E1          Preliminary
Products


 


For
Quality Control purposes, the following preliminary products, at an appropriate scale and digital format, will be produced in
the field as soon after the completion of flying as possible, but in any case within one week of the completion of flying. The
preliminary products will include:


 


		·	Differentially
                                                                                                               corrected GPS flight
                                                                                                               path map



		·	Colour
                                                                                                               Total Magnetic
                                                                                                               Intensity contours
                                                                                                               image



		·	Colour
                                                                                                               Total Count contours
                                                                                                               image



 


E2         Final
Products


 


E2.1.          Base
Map


 


A
topographic base will be prepared for the survey areas by either using a DTM, or by digitizing/scanning the major features (large
lakes, major rivers, towns, etc.) from the available topographic maps covering the area, and plotting them as background on to
the geophysical maps. All title blocks and surround data appearing on the base maps will be machine drafted using CAD techniques.


 


		E2.2.          	Colour
                                                                                                                                              Maps



 


The
following map products will be prepared and delivered in digital format at an appropriate scale and on a suitable base
map as determined through discussion with Client and MPX


 


		A.	Magnetic
                                                               Maps (colour image with contour lines):



		·	Flight
                                                                                                            Path



		·	Digital
                                                                                                            terrain model (DTM)
                                                                                                            calculated from the
                                                                                                            GPS and radar altimeter
                                                                                                            data



		·	Levelled
                                                                                                            total magnetic intensity
                                                                                                            (TMI)



		·	TMI
                                                                                                            with IGRF removed
                                                                                                            (TMI-IGRF)



		·	Computed
                                                                                                            RTP or RTE magnetic
                                                                                                            map



		·	First
                                                                                                            vertical derivative
                                                                                                            (1VD)



  


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com


 



    	-32-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011


 


 


		B.	Gamma-Ray
                                                               Spectrometry Maps (colour image with contour lines):



		·	Total
                                                                                                            Count (TC) (nGy/hr)



		·	Potassium
                                                                                                            (K) (%)



		·	Thorium
                                                                                                            (Th) (ppm)



		·	Uranium
                                                                                                            (U) (ppm)



		·	U/K
                                                                                                            ratio



		·	U/Th
                                                                                                            ratio



		·	Th/K
                                                                                                            ratio



		·	Ternary
                                                                                                            map (no contour lines)



 


***All
products will be prepared in NAD27 UTM Zone 12N (with Latitude and Longitude edge ticks).


  


E2.3.Digital
Data


 


The
edited field data and the processed digital data will be delivered in three (3) copies, in ASCII and Geosoft format, on CD-ROM
or DVD-ROM as appropriate.


 


The
final processed line and grid data, in Geosoft format and a compatible digital data format suitable for use in the client’s
software, will also be delivered in three (3) copies on CD-ROM or DVD-ROM as appropriate. Full descriptions of the digital data
formats will be included in the final report and as text files on each CD-ROM or DVD-ROM as appropriate.


 


Geosoft
Grids:


		·	Digital
                                                                                                           terrain model (DTM)
                                                                                                           calculated from the
                                                                                                           GPS and radar altimeter
                                                                                                           data



		·	Leveled
                                                                                                           total magnetic intensity
                                                                                                           (TMI)



		·	TMI
                                                                                                           with IGRF removed (TMI-IGRF)



		·	Computed
                                                                                                           RTP or RTE



		·	Calculated
                                                                                                           first vertical derivative
                                                                                                           (1VD) 



		·	Total
                                                                                                           Count (TC) (nGy/hr)



		·	Potassium
                                                                                                           (K) (%)



		·	Thorium
                                                                                                           (Th) (ppm)



		·	Uranium
                                                                                                           (U) (ppm)



		·	[Ternary
                                                                                                           map displayed from
                                                                                                           Potassium, Thorium
                                                                                                           & Uranium grids]



  


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com



 



    	-33-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011


 


E2.4.      Reports


 


E2.4.1.
Daily Reports


 


Daily
reports will be prepared using an EXCEL spread-sheet format, by the on-site Project Manager, and will be submitted by Fax or E-mail,
daily, to the Client. This report will summarize the details of flights flown, lines acquired, crew details, and information
concerning weather and other relevant matters.


 


E2.4.2.Final
Report


 


On
completion of the data compilation, a draft final report will be delivered to the Client for review and comment. When the
Client’s comments/recommendations, if any, have been incorporated and the revised report accepted (MPX would expect
that this process will take no longer than 7 days), three (3) copies of the report will be delivered to the Client in digital
format, complete with final page-size prints of maps.


 


The
report will include:


 


		·	a
                                                                                                            diary of survey and
                                                                                                            processing operations



		·	a
                                                                                                            list of the personnel
                                                                                                            employed in the survey,
                                                                                                            compilation and processing,
                                                                                                            with their job descriptions



		·	details
                                                                                                            of the instrumentation
                                                                                                            and helicopter used



		·	a
                                                                                                            summary of survey
                                                                                                            statistics



		·	a
                                                                                                            summary of the results
                                                                                                            of tests, checks and
                                                                                                            calibrations



		·	a
                                                                                                            full description of
                                                                                                            data compilation and
                                                                                                            processing methods
                                                                                                            used



		·	a
                                                                                                            list of maps and other
                                                                                                            final products



		·	a
                                                                                                            sheet layout indices
                                                                                                            for all map scales



		·	a
                                                                                                            full descriptions
                                                                                                            of digital data formats



 


		E2.5.	Other
                                                                            Data



 


All
original and intermediate data will be delivered to the Client upon completion of the contract, including in particular:


 


		·	daily
                                                                                                            flight reports



		·	CD-ROMs
                                                                                                            containing .JPG images
                                                                                                            acquired during the
                                                                                                            survey



		·	copies
                                                                                                            of all checks and
                                                                                                            calibrations



		·	any
                                                                                                            other original material
                                                                                                            connected with the
                                                                                                            survey



 


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com



 



    	-34-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011


 


E3.Charges
for Additional Deliverables Not Specified in this Agreement


 


	TYPE
    OF DELIVERABLE	 	PRIOR
    NOTICE	 	LATE
    NOTICE
	New
    Products & Services	 	Per
    Each New Item	 	Per
    Each New Item
	Maps – black-line on Mylar	 	$300	 	$500
	Magnetic Derivative Products	 	$250	 	$500
	 	 	 	 	 
	Existing
    Plotted Products	 	Per
    Each Plot	 	Per
    Each Plot
	Maps – black/white on Mylar	 	$220	 	$280
	Maps– colour	 	$150	 	$210
	Existing Reports (Complete with
    digital data and maps)	 	$750 Per Copy	 	$1000 Per
    Copy
	Existing Report (hard copy with
    digital DVD-ROM)	 	-	 	$350 Per Copy
	Digital Data (DVD-ROM)	 	-	 	$250 Per Copy


 


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com



 



    	-35-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011


 


SCHEDULE
F


IAGSA
SURVEY CONTRACT ANNEX 





1.1
Introduction 


The
party contracting the airborne geophysical survey (Company) and the party supplying the services (Contractor) each has a Duty
of Care to ensure that the survey is carried out safely. The Contractor shall have a Safety Management System and ensure that
flight operations meet or exceed regulatory and Company safety requirements.


 


The
provisions contained herein have been prepared by the International Airborne Geophysics Safety Association (IAGSA) and have been
drawn from IAGSA’s Safety Policy Manual. They represent those provisions normally appropriate to airborne surveys. Additional
background and implementation details may be found in the Safety Policy Manual and the Contractor should reference the manual
as necessary.


 


The
provisions in this Annex are not exhaustive and may be amended or extended as necessary in accordance with the survey specific
risk assessment. 


 


1.2
Job Safety Analysis 


The
contractor and where applicable the aircraft operator will complete a Job Safety Analysis (JSA) for review and acceptance by the
Company before awarding a contract. The JSA should include, but not be limited to, the provisions described in this Annex and
IAGSA’s Guide to Risk Analysis. (Safety Manual Appendix V) Provisions and practices shall be developed and documented to
mitigate the effect of identified hazards. 


 


1.3
Survey Height 


Based
on pilot reaction times and other factors, it is generally acknowledged that the lower the survey is flown, the higher the risk
associated with the operation. Current industry practice often dictates low clearance heights. To achieve a safe survey height;
the Company will specify the maximum clearance height possible, consistent with the objectives of the survey to be flown; and
the Contractor will conduct a risk analysis that emphasizes the risk factors which pertain to survey height . These factors shall,
as a minimum, include the following:


 


Terrain
relief and elevation above the trees or the tree canopy

aircraft performance

aircrew flight and duty times

prevailing weather conditions

anticipated density altitude

pilot experience and recency

planned flight speed 


 


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com



 



    	-36-



    	 



    

  


		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011





 


1.4
Turning Procedures 


All
turns at low-level should be limited to a maximum angle of bank of 30 degrees and be done at a constant altitude. No climbs or
descents should be carried out during the turn. If the terrain or survey height dictates that a climb is necessary the aircraft
should be climbed to the required height prior to commencing the turn and any descent back to survey height should be done after
established in a wings level attitude.





 


1.5
Minimum Safe Survey Speed 


The
minimum safe survey speed is to be the greater of: 130% of clean stall speed (Vs); 110% of best single engine rate of climb speed
(Vyse, if applicable), or minimum safe single engine speed (Vsse, if published). This minimum speed shall be observed even when
exchanging airspeed for altitude during a climb and should be raised as necessary to account for local conditions such as turbulence
and gusty winds.


 


1.6
Performance Monitoring 


Performance
parameters, including aircraft speed, height above terrain and drape, will be periodically reviewed using data collected during
the survey. Deviations below minimum survey speeds and minimum height will be investigated and corrective action taken to ensure
that safety margins are not compromised. The frequency of review should be such as to identify any discrepancies as early as possible.
(IAGSA’s Technical Committee is working on a protocol that will provide practical guidance for; identifying the kinds of
data that should be available; how often it should be sought; and what to do when hazardous flying is detected or suspected) 


 


1.7
Flight Following 


The
operator will have in place for all survey flights a flight following system that includes scheduled position reports, position
logs maintained on the ground, operational flight plans and overdue/emergency response procedures. If the survey is being conducted
in an area where it would be difficult to find a downed aircraft or ground based communication facilities are severely limited
the parties should consider using a satellite based tracking system in conjunction with position reports. 


 


1.8
Survival 


In
the event that the aircraft’s survival kit is destroyed in a crash, each crew member carry on his/her person essential survival
items that include a personal locator beacon, means to start a fire, a small knife and a signal mirror. 


 


1.9
Underwater Escape Training 


If
the survey is over water, all crew members shall have undergone underwater escape training at an acceptable training facility
during the past three years. This training should have also cover sea survival and use of emergency equipment.


 


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com



 



    	-37-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011


 


1.10
Fire Extinguisher Training 


All
crew members, including equipment operators, shall receive annual training in the use of fire extinguishers in fighting in flight
fires.


 


In
order to quickly extinguish any fire in the survey equipment, an appropriate fire extinguisher shall be readily available to the
equipment operator. 


 


1.11
Monitoring of Radios 


During
survey flights radios are to be turned on and selected to the appropriate ATC or enroute frequencies. Additionally, equipment
permitting, common air to air and emergency (121.5 MHz) frequencies should also be monitored. 


 


1.12
Maximum Flight Duration 


The
maximum flight duration for a single flight shall be five hours (excluding transit time) for a one pilot crew and eight hours
(excluding transit time) for a two pilot crew. 


 


1.13
Flight and Duty Times 


The
maximum number of flight hours shall be as follows:


40
hours in any 7 consecutive day period;


70
hours in any 14 consecutive day period;


120
hours in any 30 consecutive day period;


1200
hours in any calendar year.


 


The
maximum duty time in any one day shall not exceed 14 hours.

The maximum duty time shall not exceed 60 hours in any 7 consecutive day period.

The pilot shall have a minimum of 2 days rest within a 14 day period. These may be taken separately or


together.
If taken separately, one day of rest shall be defined as 30 consecutive hours free of duty.


 


1.14
Fuel 


The
pilot shall take all necessary measures to ensure that any fuel loaded onto the aircraft is not contaminated. (Detailed procedures
are outlined in IAGSA’s Safety Policy Manual).


  


1.15
Use of Helmets 


Use
of helmets is to be considered on a case by case basis and where they are judged to enhance pilot safety, helmets shall be worn. 


 


1.16
Night Surveys 


To
conduct a night survey the aircraft must be IFR certified and equipped with at least two independent and dissimilar IFR certified
navigation systems that can be used in the survey area. The survey shall be flown at least 1000 feet above all obstacles within
the operational area and a 10 nautical mile buffer around the operational area. The operational area shall include the maneuvering
area for line turns and lead ins. 


 


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com



 



    	-38-



    	 



    

 





		P1177
    Helicopter-borne Geophysical Survey, Mexico – October 2011





 


1.17
Pilot Only Operations 


For
single pilot operations without an equipment operator, the pilot’s duties shall be those normally associated with flying
the aircraft and those duties shall not be increased because of the absence of an operator. 


 


1.18
Training Syllabus 


The
aircraft operator engaged in geophysical survey flying will have in place and utilize an appropriate training syllabus for low
level survey flying. Chapter 3 of the IAGSA Safety Policy Manual provides a guide to the contents of a training syllabus. 


 


1.19
Minimum Temperature Limit 


The
minimum temperature limit for operations shall be –35 Degrees Celsius. 


 


1.20
Use of Aircraft Heater 


The
use of aircraft heaters shall not be limited in the interest of “clean” data. 


 


1.21
Tour of Duty 


Due
consideration shall be given to crew rotation that takes into account factors such as remoteness of the field site, severity of
climate, quality of accommodation and food, etc. 


 


1.22
Incentive Pay 


Flight
crews shall not be paid on the basis of hours or kilometers flown. 


 


1.23
Use of Oxygen 


Any
time a survey flight, or portion thereof, is conducted above 10,000 feet ASL , in an unpressurized aircraft, all crew members
shall continuously wear an oxygen mask supplying oxygen. 


 


1.24
Pilot in Command 


Notwithstanding
the above, it is recognized that the pilot in command will always have the final word in relation to the safe operation of the
aircraft.


 


{00140175.1
/ 0899-001}


25
Valleywood, Unit 14, Markham, Ontario, Canada, L3R 5L9


Tel:
(905) 947-1782 Fax: (905) 947- 1784 E-Mail: info@mpxgeophysics.com Web: www.mpxgeophysics.com



  



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