Document:

Unassociated Document

    

    GEOLOGICAL
REPORT OF THE MULUNCAY DEPOSIT

    OF
THE

    PORTOVELO-ZARUMA-AYAPAMBA
AREA

    

    EL
ORO PROVINCE, ECUADOR

    

    Prepared
For Ecuadorgoldcorp S.A

    

    AUTHOR: WIMER CASTRO

    

    FEBRUARY,
2008

    
      
         

      

      
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    TABLE OF CONTENTS

    

    
      
        
          	
                  INTRODUCTION

                	
                  1

                
	
                   
      

                	 
      
	
                  HISTORY

                	
                  1

                
	 
      	 
      
	
                  DESCRIPTION
      AND LOCATION

                	
                  4

                
	 
      	 
      
	
                  ACCESABILITY,
      CLIMATE, VEGETATION AND LOCAL FACILITIES

                	
                  4

                
	 
      	 
      
	
                  LOCAL
      AND REGIONAL GEOLOGICAL SETTING

                	
                  6

                
	 
      	 
      
	
                  DEPOSIT
      TYPES

                	
                  7

                
	 
      	 
      
	
                  LOCAL
      AND REGIONAL MINERALIZATION

                	
                  8

                
	 
      	 
      
	
                  EXPLORATION

                	
                  10

                
	 
      	 
      
	
                  DDH
      DRILLING

                	
                  12

                
	 
      	 
      
	
                  SAMPLING
      METHOD

                	
                  12

                
	 
      	 
      
	
                  SAMPLE
      PREPARATION FOR TESTING

                	
                  12

                
	 
      	 
      
	
                  ADJACENT
      CONCESSIONS

                	
                  12

                
	 	 
	
                  EXPLORATION
      POTENTIAL

                	
                  13

                
	 	 
	
                  CONCLUSIONS
      AND RECOMENDATIONS

                	
                  13

                

        

      

    

    
      
        
        

      

      
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    SUMMARY

    

    This
assessment report has been prepared by Wilmer Castro who has researched the
mining, treatment, economic analysis and further development potential of the
property. The Muluncay District comprises a total area of 343 hectares in a
readily assessable region of southern Ecuador. The gold mineralization found in
the district is associated with an extensive high grade gold and silver
epithermal vein system. This Preliminary Assessment Report was prepared by the
author at the request of Ecuador gold Corp. S A. and is based on:

    

    • a site
visit in January 2008;

    

    •
interviews with Company management and other consultants engaged to
assist

    

    I have
visited the Muluncay District numerous times and am very familiar with the area
and it’s potential.

    

    The
writer has been requested by the Management of Ecuadogold to summarize the
geology and mineral potential of the Muluncay Project within the prospective
gold and silver-bearing vein systems in the Occidental Andean Cordillera
primarily the Gen and Cristina veins.

    

    HISTORY

    

    The hills of Zaruma and Portovelo have been mined for gold and silver for centuries. The Incas were already extracting gold and silver in the area with hydraulic mining of the oxidized parts of veins when Mercadillo, one of Pizzarro ́s force, followed the Rio Amarillo River upstream and encountered the Inca mine and founded the town of Zaruma in 1549 (Billingsley, 1926). Exploitation of the Zaruma and Portovelo districts continued during the time of Spanish colonization until 1870 when an Ecuadorian-Chilean company was established.

    
      
         

      

      
        - 3-

        
          

        

      

      
         

      

    

    In
1880,
Grant
Zaruma
Company,
from
England,
bought
controlling
shares
of
a
newly
formed
Ecuadorian-Chilean
mining
company.
Operational
rights
were
immediately
endorsed
to
Southern American Development Company (SADCO),
an
American
company,
who
operated
the
mine
from
1897
to
1950
by gaining control of the district’s main gold deposits in 1897.
Exploration programs of SADCO commenced in 1896 and brought the mine into
production at 108t/day in 1905. The mine was subsequently deepened to 13 level
located at an elevation of 270m above sea level, 800m below the uppermost
workings (PRODEMINCA, 2000 in Spencer, R.M. et al., 2002). In the 53years that
followed, SADCO recovered some 3.5 million ounces of gold and 12 million ounces
of silver from 7.6 million tones of ore at a cut-off grade of 14.4 g/t Au and
48.9 g/t Ag (Van Thournout et al., 1996).

     

    
      After the
lower levels of the Portovelo mine were flooded in 1944 and facing increasing
costs, taxes and a complicated political situation, SADCO finally withdrew from
the country in 1950 and the Ecuadorian government took over the mine. A state-owned
company,
CIMA,
took
over
the
mining
operations
in
the
area
until
1980
and
it
is
estimated
to
have
produced
a
further
375,000
oz
of
gold
by
1965.
In 1984, thousands
of
poverty-stricken miners invaded the old SADCO pits and small-scale and
artisan mining has been going on in the area ever since. An additional 35,000 to
50,000 oz of gold has been produced each year since then by informal miners,
small-scale operating mining societies and principally from the family-owned
BIRA. In the 1990 ́s statistical information, mining from the Zaruma and Portovelo areas totaled 3 million tons.

    

     

    In the
mid-1990s several overseas companies attempted to consolidate the area and
carried out systematic exploration programs.

    
      
         

      

      
        - 4-

        
          

        

      

      
         

      

    

    Current
exploration by ECUADORGOLDCORP SA involved site visits and samples of vein
material were taken from the Gen and Cristina veins. Gold values from several
samples taken range up to 10.40 g/T. Other samples taken in other workings show
values of up to 58.6 g/T gold, up to 209 g/T silver, up to 4.86% copper and up
to 16.85% zinc. Data provided by the company notes that there are eight (8)
mines on the concession. The two main producing mines, Nueva Esperanza and
Aguacate (in a production stage) contain the three main major veins Cristina,
Gen, and a third vein (name unknown to the author). In these two mines
development work was seen to be carried out. This work includes advancing an
additional 50 m beyond the actively mined veins to a fourth mineralized vein.
The two tunnels are being advanced along this new vein to prepare it for
exploitation. The tunnels are being reconditioned to allow a more efficient
mining equipment transportation, in order to extract ore material with 10
two-tonne ore cars (20 tons) per trip from underground to the ore stockpile or
primary crusher. The processing plant is currently operating and it contains the
primary crusher, secondary crusher, a series of Chilean grinding mills and a
series of Denver floatation cells to concentrate sulphide mineralization to
capture both mineral ore and any gold-silver associated with those sulphides.
There is a 125 hectare property less than one kilometer from the current
processing plant. It is being considered to increase the capacity of the
processing plant in such property. Company engineering and geological staff of
ECUADORGOLDCORP S.A. are planning the additional six additional mines on the
concession be brought to the production level of the two currently operating
mines.

    

    SADCO
operated mines in the Zaruma-Portovelo-Ayapamba district for 46 years. During
this time approximately 3.6 million ounces of gold and 12 million ounces of
silver were produced. Production rates at the Grand Mine, the major producer in
the district, are estimated up to a maximum of 200,000 tonnes per year, and gold
grades were approximately 20-30 g/T. Significant quantities of silver, lead and
zinc were also produced. The old SADCO operations, scattered throughout the
district, generally (with the exception of the Grand Mine) only extended to a
depth of approximately 200m below surface. The Grand Mine contains a
gold-mineralized zone which extended to a depth of at least 660 m below surface.
It was collared at an elevation 700 m below mine workings in the Muluncay
concession area. This indicates that there is significant additional potential
at depth of up to 1500 m within the Muluncay concession. A preliminary estimate
of the resource is made by the author on the Muluncay Concession, from the two
currently active veins (Gen and Cristina) with an estimated strike length of 1
km (the N-S length of the concession), an average width of 1.0 m and an average
depth of 1000 m. Using a grade of 6 g/T as the average grade, this would produce
an estimated tonnage of 400,000 T for each vein. There are presently 4 known
veins, which would give a total current resource of 1,600,000 T, for a total of
9,600,000 g (300,000 oz) gold. Additional veins will be found during ongoing
development and exploration. The tonnage estimate will very likely increase
significantly. Secondary veins, stringers, breccia and disseminated
mineralization in the wall rocks have never been exploited, or even properly
assessed. It is the author’s opinion that with the improved, more economic
mining and milling methods this resource can be taken advantage of, so that it
is probable that this resource can be increase to greater than 2.0 million tons
which would produce 9,600,000 g (375,000 oz) Au. However, this is a relatively
low grade estimate when one considers that the cut-off grade for the SADCO
operations was 14.6 g/ton. Using that value as an average grade 2.0 million tons
of ore would produce 29,200,000 grams (912,500 oz) of gold. No estimate of the
value derived from silver or sulphide concentrate has been made, but it would
add a significant amount to the value of this resource. The history of the
Zaruma mining operations indicates that there is a significant opportunity to
apply modern mining methods to a major resource which has had only limited
exploitation in the past.

    
      
         

      

      
        - 5-

        
          

        

      

      
         

      

    

    DESCRIPTION AND LOCATION

    

    Ecuadorgold
is doing some development works at Muluncay concession, which is located in the
Portovelo-Zaruma mining area, situated in the cantons of Ayapamba and Paccha,
Province of El Oro of southern Ecuador and covers an area of 374 mining hectares
at Latitude 03o 36’ 30” South and Longitude 79o40’ West. The following
co-ordinates are based on a metric UTM grid system referenced to PSAD-56 datum
and geographic zone 17.

    

    Table 1 – Muluncay Boundary Coordinates

    

    
      
        
          
            	
                    Easting - m

                  	 	
                    Northing - m

                  	 
	
                    652000

                  	 	 	9599400	 
	
                    653100

                  	 	 	9599400	 
	
                    653100

                  	 	 	9596800	 
	
                    651600

                  	 	 	9596800	 
	
                    651600

                  	 	 	9599000	 
	
                    652000

                  	 	 	9599000	 
	
                    652000

                  	 	 	9599400	 

          

        

      

    

    

    The
project is situated about 175 kilometres southeast and 60 kilometres east of the
major Pacific port cities of Guayaquil and Machala, and lies on the cordillera
occidental of the Andes, which runs the length of the west coast of North and
South America.

    

    ACCESSIBILITY, CLIMATE, PHYSIOGRAPHY,

    

    LOCAL RESOURCES AND INFRASTRUCTURE

    

    Access to
the district from the coast is by a paved 2-lane road in good condition. It is
approximately a 2 hour drive from the coastal city of Machala to the town of
Portovelo, at the confluence of the Rio Amarillo and Rio Calera. From within the
district access to most of the properties, including the Muluncay concession, is
by secondary 1- to 2-lane paved roads which often continue to specific sites by
tertiary single lane gravel roads, usually in conditions for 4 wheel drive
vehicles. Access to these sites from Portovelo takes approximately 30
minutes.

    
      
         

      

      
        - 6-

        
          

        

      

      
         

      

    

    
       

      The
climate is subtropical and humid with temperatures ranging from 18o to 30o C. Yearly rainfall averages
1,341 mm, with heaviest rainfalls occurring in the months from January to June.
Within the district, topography is moderately steep with elevations ranging from
the 950 to 1650 m above sea level (ASL). The Portovelo-Zaruma-Ayapamba district
is traditionally an underground mining camp. Those areas are not disturbed by
mining activity used for farmlands and livestock raising. Any early stages of
surface exploration work such as sampling and possible DDH drilling carried out
by ECUADORGOLDCORP SA will involve minimal disruption to current surface
activities of the communities.

    

    

    Plate 1 – Typical Topography and Vegetation, area of Muluncay Concession

    

    

    
      
         

      

      
        - 7-

        
          

        

      

      
         

      

    

    The
population within the project area is approximately 50,000. Zaruma, has a
population of 29,000, and Portovelo, with a population of 14,000 make up the
majority, but there are numerous small villages of a few hundred people each
(e.g. Ayapamba, Muluncay). The population has extensive experience in the
recognition and mining of vein high-grade gold deposits, making them a valuable
asset for future exploration, development and production throughout the entire
region. Hotels, communication resources, public security and government
institution representatives are pleased. In Pinãs, approximately 20 km distance
to the west there are high-tension power lines providing electricity and are
connected to both Zaruma and Portovelo. Cell phone use in this area allows
communication with major centres in the country. The Rio Amarillo and Rio Calera
rivers are able to supply adequate water for large scale mining operations
throughout the year.

    

    GEOLOGICAL SETTING

    

    Regional

    

    Regional
geology of the southern part of Ecuador consists of basement rocks of the
Triassic age Tahuin Series. These include San Roque Formation medium- to
high-grade gneisses, schists and amphibolites overlain by a thick sequence of
Capiro Formation low-grade mica schists, phyllites and quartzites, with a minor
component of interfingering volcanic rocks.

    

    This
metamorphic basement is unconformably overlain by a thick sequence of Lower
Cretaceous age Celica Formation massive, homogeneous volcanic lavas and tuffs.
These are of andesite composition and are intercalated with minor sedimentary
layers. The Celica Formation is intruded by small plutons of diorite to
granodiorite composition, also Lower Cretaceous in age. This entire mass has
been interpreted as a continental volcanic arc. All of these units are capped
unconformably by Tertiary (Oligocene age) Saraguro Formation felsic volcanic
lavas and pyroclastics, by later Miocene age Chinchillo Formation (currently
referenced as Pisayambo Formation) rhyolite flows and
pyroclastic.

    
      
         

      

      
        - 8-

        
          

        

      

      
         

      

    

    There are
two major regional faults. These are the Pinãs Fault and the Puente Busa
–Palestina Fault. These faults have produced three tectonic blocks which have
exposed bedrock to different depths. Between these two faults exposure consists
of Celica Formation mafic to intermediate volcanics. Within the Celica Formation
(Figure 4) is a thick series of andesitic lavas termed the Portovelo Series
which occurs along a central N-S trending axis. These lavas act as host rocks to
most of the vein systems in the Portovelo-Zaruma-Ayapamba region. Recent mapping
has shown that the Celica Formation is unconformably overlain by two
hydrothermally altered volcanic series, and is crosscut by a subvolcanic feeder
systems. These volcanics are composed of intermediate pyroclastics and breccias,
crosscut by younger small rhyolite stocks, dykes and sills. These rhyolitic
rocks are concentrated along two NW trends in the central mountain ranges
(Zaruma-Urco and Santa Barbara) and are due to resistant weathering caused by
regional silicification. Most of the district vein-cavity fillings, including
base and precious metals mineralization, are closely associated with this
volcanic activity.

    
      
         

      

      
        - 9-

        
          

        

      

      
         

      

    

    

    
      
         

      

      
        - 10-

        
          

        

      

      
         

      

    

    Significant
structures in the district (Figure 5) include NW, NE and N-S trending high- and
low-angle faults and circular structures. The N-S trending veins, dipping
generally 70o to 90o NE, are the dominant though not
the only structures for hosting gold, silver, lead, zinc and copper
mineralization in the district. They are bound to the SW by the NW-trending
Pinas Fault. The Puente Busa –Palestina Fault lies directly NE of the centre of
the district and does not interfere with the continuity of faults, veins or
mineralization beyond it
to the NE.

    
      
         

      

      
        - 11-

        
          

        

      

      
         

      

    

     

    

    
      
        
        

      

      
        - 12-

        
          

        

      

      
        
        

      

    

     

    Concentric
district-size zones of propylitic, argillic, silicic and sericitic alteration
cover the region and represent the collapse of a Miocene age volcano and the
formation of a caldera. Supergene enrichment of gold mineralization is
recognized in certain areas by the presence of strong patches of argillic
alteration. Silicification represents the core of this alteration “aureole”.
Silicification formed in two stages. One type, associated with most of the
gold-silver-base metals mineralization, is related to the Portovelo-Zaruma axis.
The second type is found in the Santa Barbara Mountain and is associated with
rhyolite dykes and plugs, and with intense argillic alteration. A third type of
silicification is found as wallrock alteration haloes of
quartz-chlorite-sericite-adularia-calcite-(pyrite).

    

    Concession

    

    Bedrock
underlying the Muluncay concession consists of Lower Cretaceous age Celica
Formation massive volcanic lavas of andesitic composition. To the author’s
knowledge no detailed mapping has been carried out on these host rocks. Within
these host rocks are a series of sub-parallel structures. These local area
structures encompass those veins found within the Muluncay concession, such as
Gen and Cristina. This system of veins is the northern continuation of the large
system of veins (e.g. Abundancia, Portovelo) which have been so vigorously mined
in the Zaruma-Portovelo area for the last 400 years.

    

    DEPOSIT TYPES

    

    Gold
mineralization within the district is considered to be a low- to intermediate
sulphidation stage epithermal (Hedenquist, 2000) to upper mesothermal
gold-silver-lead-zinc-copper system. Typically this type of mineralizing system
includes pyrite-pyrrhotite-arsenopyrite and high-Fe sphalerite. Gangue minerals
vary from vein through stockwork to disseminated forms. Gold is typically
associated with quartz-adularia ± calcite ± sericite. This contrasts with
high-sulphidation types which typically contain
gold-pyrite-enargite-luzonite-covellite hosted by a leached residual core, with
quartz-alunite, kaolin, pyrophyllite or diaspore. A subset of the
low-sulphidation stage assemblage contains
pyrite-tetrahedrite/tennantite-chalcopyrite and low-Fe sphalerite. This subset
is also silver and base metal rich compared to low-sulphidation end members.
Base metals within the Muluncay veins, as well as within much of the district
mineralization may be an indicator for this intermediate assemblage. It could
also indicate (especially the presence of significant galena –(lead) that the
system has reached upper mesothermal depths.

    
      
         

      

      
        - 13-

        
          

        

      

      
         

      

    

    MINERALIZATION

    Regional

    

    The gold
bearing north-south trending sub-parallel systems of quartz veins occurring
within the Portovelo-Zaruma district are found exclusively within the Cretaceous
altered andesitic rocks (Portovelo Series).

    

    Spatially
the mineralization is arranged in three zones. In Zone 1 pyritization with
little gold is seen in stockwork, shattering and brecciation around the Santa
Barbara and Zaruma Mountains. Zone 2 contains gold-bearing quartz and
quartz-adularia veins with abundant sulphides and is found in the
Portovelo-Zaruma axis and NE of the Santa Barbara Mountains. A large aureole of
gold-bearing quartz-calcite and quartz-chlorite, with abundant sulphosalts and
minor sulphides, representing Zone 3, surrounds the core of sulphide
mineralization. Muluncay lies within the NNW
continuation of the Zone 2 type of mineralization. Based on the presence of
adularia-sericite, the vein textures, the abundance of sulphides and calcite,
the mineralization is considered to be part of an adularia-sericite low- to
intermediate sulphidation epithermal gold system.

    

    The
quartz veins are predominately fault and fracture filling structures exhibiting
pinch and swell, branching, composite banding, braided and loop
features.

    
      
         

      

      
        - 14-

        
          

        

      

      
         

      

    

    

    
      
         

      

      
        - 15-

        
          

        

      

      
         

      

    

    Regionally
these mineralized veins extend horizontally for at least 15 km (the
Portovelo-Zaruma-Ayapamba region), and have probable depths of at 1500 m (from
local height of land to known depth of the Casa Negra Concession SADCO Grand
Mine). Past-producing veins in the district range from 60 cm to 8 m, with
an average width of 1.3 m. “Stringers” and narrow veins, as well as silicified
wallrock, are virtually untested for their gold potential. As is typical in a
standard epithermal gold system, there are some zones of “bonanza-type”
high-grade gold mineralization (locally termed “clavos”) in the 30 to 200
g/tonne range. Clavos of this grade were reported by the owner on the Muluncay
concession on one of the major veins (Cristina or Gen).

    

    Most of
the known gold is free-milling. Other mineralization includes silver (as
electrum, sulphosalts and with galena) and copper-lead-zinc sulphides
(chalcopyrite-galena-sphalerite).

    

    The
dominant north-south strike of the gold bearing quartz veins shows local
variations in the proximity of cross faults. To the south of Rio Amarillo, the
veins swing in a south-east direction, sub-parallel to the Pinas-Portovelo
fault.

    

    Three
main types of gold bearing veins are present in the district. These are: 1)
Quartz veins with disseminated pyrite, minor chlorite as streaks, bands and
patches, and 2) Quartz veins with abundant pyrite and subordinate chalcopyrite,
galena and sphalerite occurring as bands, patches and coarse disseminations, and
3) Carbonate veins with coarse calcite and calcite-quartz gangue occasionally
with coarse galena, sphalerite and chlorite beside ubiquitous pyrite. Visible
gold is not a common occurrence within the Portovelo-Zaruma-Ayapamba district.
As a general rule, gold occurs as fine particles, often less than 100 mesh in
size. According to microscopic studies carried out in the past, gold locally
replaces sphalerite. Locally gold mineralization is present in the wall rock
following north-east trending faults and fractures.

    

    Post
mineralization faulting along north-west striking cross faults has locally
caused displacements of up to 40 metres in several gold bearing structures.
Local detailed mapping and drilling is required to trace the continuity of this
mineralization.

    

    
      
        
        

      

      
        - 16-

        
          

        

      

      
        
        

      

    

     

    Concession

    

    The two
best-known and most continuously worked veins within the southern side of the
Muluncay concession include Gen and Cristina. Other veins exist parallel to
these two main structures but are not presently developed. Both the major and
secondary veins are being mined on the north half of the concession but they
have not been traced the entire length of the concession. The mineralization in
the concession area ranges from a gold:silver ratio of 1:10 near surface to 1:15
at depth. Veins range up to 1500 m in strike length, and mines in the immediate
area range from 1650 m ASL to 950 m ASL, giving a known depth of
mineralization of at least 700 m. Vein widths range from 0.40 m to 1.40 m and
are steeply dipping (70° to 90°) to the NE.

    

    Typical Mine-Mill Complex, Muluncay Concession

    

    FOTO
1: MOLINO TRAPICHE CHILENO

    

    

    
      
         

      

      
        - 17-

        
          

        

      

      
         

      

    

    FOTO
2. MOLINO DE BOLAS

    

    

    

    FOTO
3: PLANTA DE CIANURACION

    

    

    
      
         

      

      
        - 18-

        
          

        

      

      
         

      

    

     

    
      The Gen
and Cristina veins consist of milky quartz, being hard but brittle, and contain
chalcopyrite (copper), sphalerite (zinc) and galena (lead) sulphide minerals.
This mineralization is similar to that found in the Portovelo-Zaruma area mines,
where it is quite common. The principal mineral accompanying the gold is pyrite
(FeS2), but
other minerals include safflorite (CoAs2),
proustite (Ag3AsS3),
tetrahedrite (Cu3SbS3-4),
freibergite ((CuAg2ZnFe)3Sb2S6) and minor
Au-Pb telluride minerals. These are indicative of a low-temperature near-surface
environment.

       

      EXPLORATION

    

     

    Historical

     

    Systematic
exploration activity closely related to mining advance was carried out by SADCO
from 1897 to 1950.
However, only limited information is available from that period. Detailed
underground maps and 103,657
assay result records have been recovered from local miners and from local
archives by TVX Gold Corp. and
IAMGOLD. Much of the SADCO data can be acquired from certain parties in
Machala.

    

    Modern
exploration activity within the Zaruma – Portovelo Mining District begun in 1995
when a one-year property area consolidation and district-scale exploration was
made by TVX Gold Corporation, a Canadian-based company. During this period, over
40 km of underground workings were surveyed and mapped on a 1:500 scale. Total
amount of underground samples collected by TVX is estimated to be over
4,000.
IAMGOLD reported 733 samples although many of these were from older maps and
reports. Following TVX ́s withdrawal from Ecuador in 1998, all information was
acquired by IAMGOLD who continued exploration. This work including surface
trenching, surface and underground sampling, surveying and diamond drilling and
geological modelling. IAMGOLD databases contained the following:

    

    680
surface rocks channel and chip samples

    

    2,126
underground channel samples

    

    5,415
soil samples

    

    37
diamond drill hole results including sample assay results

    

    1,114
DDH core samples

    

    2,591
topographical control points survey

    

    39
stream sediments samples

    

    369
channel samples form surface trenching

    
      
         

      

      
        - 19-

        
          

        

      

      
         

      

    

     

    

     

    
      
        
        

      

      
        - 20-

        
          

        

      

      
        
        

      

    

    
      Current

      

      Current
exploration by ECUADORGOLDCORP SA involved a numerous visits to the Muluncay
concession visiting three separate mines within the concession. These included
Fatima, Nueva Esperanza 1 and Aguacate (see Figure 6). Numerous other workings
are present within the concession but were not investigated at these times.
Several samples of vein material were taken by the author from the various
workings, including samples from Gen, Cristina and a third vein. Assay results
are shown in Table 2 below:

      

      Table 2 – Assays from Independent Sampling, Mina Aguacate, Sept/06

      

      
        
          
            	
                    Sample

                  	 	
                    Au

                    g/T

                  	 	 	
                    Ag

                    g/T

                  	 	 	
                    Cu

                    %

                  	 	 	
                    Pb

                    %

                  	 	 	
                    Zn

                    %

                  	 
	
                    483051

                  	 	 	0.013	 	 	 	0.70	 	 	 	0.053	 	 	 	0.001	 	 	 	0.02	 
	
                    483052

                  	 	 	0.015	 	 	 	7.0	 	 	 	0.089	 	 	 	0.02	 	 	 	0.02	 
	
                    483053

                  	 	 	0.361	 	 	 	16.5	 	 	 	0.26	 	 	 	0.009	 	 	 	0.06	 
	
                    483054

                  	 	 	2.76	 	 	 	37.1	 	 	 	0.85	 	 	 	0.03	 	 	 	0.19	 
	
                    483055

                  	 	 	6.64	 	 	 	36.4	 	 	 	0.82	 	 	 	0.06	 	 	 	0.15	 
	
                    483056

                  	 	 	3.25	 	 	 	23.8	 	 	 	0.69	 	 	 	0.03	 	 	 	0.21	 
	
                    483057

                  	 	 	10.40	 	 	 	27.4	 	 	 	0.30	 	 	 	0.07	 	 	 	0.09	 

          

        

      

       

      Gold
values from these samples range between 0.13 and 10.40 g/T. Numerous samples
taken by the author from other workings within the concession (# 483029 to
438050) show values of up to 58.6 g/T gold, up to 209 g/T
silver, up to 4.86% copper and up to 16.85% zinc.

       

      Personal
communication with one of the representatives of the Company notes that as of
the date of this report there are eight (8) mines on the concession. The two
main producing mines, Nueva Esperanza and Aguacate (Lopez) contain the three
main major veins Cristina and Gen, and a third vein. These two mines have had
development work carried out. This work includes advancing an additional 50 m
beyond the actively mined veins to a fourth mineralized vein. Tunnels are being
advanced along this new vein in order to remove ore. Slashing is also being
carried out, to give a 3 m high by 2.5 m wide haulage tunnel in each of the two
active mines. Steel track has been installed. This now allows the use of an
electric locomotive capable of hauling 10 two-tonne ore cars (20 tons) per trip
from underground to the ore stockpile or primary crusher.

      
        
           

        

        
          - 21-

          
            

          

        

        
           

        

      

      The
primary crusher is located at the one currently operating processing plant. This
processing plant contains the primary crusher, secondary crusher, a series of
Chilean grinding mils being modified by the Company, and a series of Denver
floatation cells to concentrate sulphide mineralization to capture both base
metals and any gold-silver associated with those sulphides.

      

      A
temporary tailings pond is present on site to satisfy government environmental
requirements for the current low tonnage production rate. There is a 125 hectare
property less than one kilometer from the current processing plant, which is
being studied by an independent consultant to conduct a required Environmental
Impact Study in the area. This report will determine the viability of the sites
use as along-term tailings pond and processing plant. Company engineering and
geological staff are reviewing and planning which of the additional six
additional mines on the concession should be considered to bring to the
production level of the two currently operating mines.

      

      DRILLING

      

      Although
modern diamond drilling has been carried out on the IAMGOLD claims, the author
does not currently have access to the positions or logs of those holes.
Therefore he has no knowledge of drilling done within the Muluncay
concession.

      

      SAMPLING METHODS AND APPROACH

       

      As this
was a preliminary investigation of the entire district, with no specific focus
at the time of the visits on the Muluncay concession, the only intent of these
assay results was to confirm assay values presented by other groups. The width
of the vein (as well as could be seen) at each of these sample points was
measured and recorded. The average width of these veins is 1.0 m, although the
width can range up to 4 m.

      

      The
samples were bagged and sealed on the property. They, along with several other
samples from the district, were delivered to the office of ECUADORGOLDCORP SA,
based in Machala. From that office they were transported to the ALS-Chemex lab
in Quito, Ecuador for sample preparation and analysis which weighed
approximately 1 to 2 kg each. No blanks and standards were submitted by the
author with the sample for Quality Control purposes.

      
        
           

        

        
          - 22-

          
            

          

        

        
           

        

      

       

      SAMPLE PREPARATION, ANALYSES

      

      General

       

      For the
multi-element analysis of 35 elements, Induced Coupled Plasma Mass Spectrometry
(ICP-MS) was used. Au and Ag content was determined by Fire Assay-Atomic
Absorption method from 30 g pulps. Pulps and rejects will be stored by the lab
for a minimum of 90 days.

      

      ADJACENT PROPERTIES

       

      
        The Muluncay Project lies
surrounded by the Dynasty concessions (Figure 3). Current activities by Dynasty can be
found on their website.

         

      

      EXPLORATION POTENTIAL

      

      Measured and Indicated Resources

       

      I visited
3 known operating mines Fatima, Nueva Esperanza and Aguacate, now known as the
Jaceth Ethan and Mary Jane respectively within the Muluncay concession. Figure 6
shows numerous mine workings.

      
        
           

        

        
          - 23-

          
            

          

        

        
           

        

      

      Exploration Potential

       

      Like so
many veins in the district which have been exploited for centuries, the
near-surface easily accessible high-grade gold mineralization is being
exhausted. Most of the mines in the district are currently extracting ore in the
range of 3-7 g/T gold. It is the author’s opinion that new investment and
detailed exploration will show that there is continuity of historical high-grade
mineralization both along strike and at depth. The fact that ECUADORGOLDCORP SA
has 5 currently undeveloped mines and has just opened a new mineralized vein
indicates that there is excellent potential for finding new exploitable
mineralized zones within the concession. Like most of the old SADCO operations
(with the exception of the Grand Mine) workings only extended to a depth of
approximately 200 m below surface. This is not because mineralization stops at
that depth. The Grand Mine contains a gold-mineralized zone which extended to a
depth of at least 660 m below surface. It was collared at an elevation 700 m
below mine workings in the Muluncay concession area. This indicates that there
is significant additional potential at depth of up to 1500 m for the Muluncay
concession. A preliminary estimate of the resource is made by the author on the
Muluncay Concession, from the two currently active veins (Gen and Cristina) with
an estimated strike length of 1 km (the N-S length of the concession), an
average width of 1.0 m and an average depth of 1000 m. Using a grade of 6 g/T as
the average grade, this would produce an estimated tonnage of 400,000 T for each
vein. There are presently 4 known veins, which would give a total current resource of
1,600,000 T, for a total of 9,600,000 g (300,000 oz) gold. Additional veins will
be found during ongoing ECUADORGOLDCORP development and exploration. Although
the grade and tonnage reserve of these new workings is not yet known the tonnage
estimate will very likely increase significantly. Secondary veins, stringers,
breccia and disseminated mineralization in the wallrocks have never been
exploited, or even properly assessed. Slashing of haulage tunnels will assist in
the examination of these zones. It is the author’s opinion that with the
improved, more economic mining and milling methods this resource can be taken
advantage of, so that it is probable that this resource can be increase to
greater than 2.7
million tons which would produce 12,960,000 g (405,000 oz) Au. However, this is
a relatively low grade estimate when one considers that the cut-off grade for
the SADCO operations was 14.6 g/ton. Using that value as an average grade 2.7
million tons of ore would produce 39,552,000 grams (1 ́236,000 oz) of gold. No
estimate of the value derived from silver or sulphide concentrate has been made,
but it would add a significant amount to the value of this resource. The history
of the Zaruma mining operations indicates that there is a significant
opportunity to apply modern mining methods to a major resource which has had
only limited exploitation in the past.

      

      CONCLUSIONS

       

      Descriptions
of gangue and ore minerals, as well as the style of structures and their
continuity along strike and to significant depth, indicates that the
Portovelo-Zaruma-Ayapamba gold camp represents a low/intermediate sulphidation
epithermal to upper mesothermal gold-silver base metals system associated with
the structures related to a Miocene age collapse caldera.

      

      The
history of the Zaruma mining operations indicates that there is a significant
opportunity to apply modern mining methods to a major resource which has had
only limited exploitation in the past. It is the author’s opinion, based on site
visits to various mines and mills in the district, and having reviewed reports
on the district produced by other mining and exploration personnel, that there
is significant additional mineral potential at depth of up to 1500 m for most of
the concessions in the district. This includes those veins, both developed and
known but undeveloped, contained within the Muluncay
concession.

      
        
           

        

        
          - 24-

          
            

          

        

        
           

        

      

      This data
has been prepared at the request of ECUADORGOLDCORP SA and is intended to inform
about the potential of the Muluncay concession for hosting one or more
gold-silver-lead-zinc-copper deposits of sufficient grade and tonnage to be
economically viable.

      

      This
report is a true and accurate representation of the assessment of the mineral
potential of the Muluncay Project.

       

      
        
          
          

        

        
          - 25-

          
            

          

        

        
          
          

        

      

       

      RESUME

       

      
        
          
            
              
                	
                        PERSONAL DATA

                      	 
      	
	 
      	 
      
	
                        Names:

                      	
                        Wilmer
      Guillermo

                      
	
                        Last
      names:

                      	
                        Castro
      Vaca

                      
	
                        City:

                      	
                        Machala

                      
	
                        Address:

                      	
                        Décima
      Sur y Av. Las

                      
	
                        Palmeras

                      	 
      	 
      
	
                        Telephone
      Number:

                      	
                        085
      502703

                      
	
                        Marital
      Status:

                      	
                        Married

                      
	
                        Nationality:

                      	
                        Ecuadorian

                      
	
                        ID.
      card:

                      	
                        0701649998

                      
	
                        Date
      of Birth:

                      	
                        Febrero
      10, 1962

                      
	
                        Place
      of Birth:

                      	
                        El
      Guabo

                      
	 
      	 
      
	
                        ACADEMICAL
      BACKGROUND

                      	 
      
	 
      	 
      
	 
      	 
      
	
                        SECONDARY
      SCHOOL

                      	
                        Colegio
      Fiscal 9 de Octubre

                        Majoring:
      Physics – Mathematics

                        Machala
      – El Oro

                      
	 
      	 
      
	
                        SUPERIOR
      STUDIES

                      	
                        Universidad
      Estatal de Guayaquil

                        Faculty
      de Natural Sciences

                        School
      of Geology

                      
	 
      	 
      
	
                        ACADEMIC
      DEGREE

                      	
                        Geologist

                      
	 
      	
                        Geology
      Engineer

                      
	 
      	 
      
	
                        WORK
      EXPERIENCE

                      	
                        Teaching
      assistant of the
      subject of

                      
	 
      	
                        MINERALOGY
      II of the School of Geology, Faculty of

                      
	 
      	
                        Natural
      Sciences, from June 1983 to February 87.

                      
	 
      	 
      
	 
      	
                        Geologic
      exploration - Underground Miner for BIRA S.A. Company located in Canton
      Zaruma, El Oro province, from February to August 1987.

                      
	 
      	 
      
	
                         

                      	
                        Geological
      exploration - Underground Miner in BARBASCO 1 in Canton Portovelo, El
      Oro Province, from June to Augusto 1988.

                      
	 
      	 
      
	 
      	
                        Geological
      exploration – Alluvial Miner in KOLLA S.A. Company located in Canton Santa
      Rosa, province of El Oro, from October/88 to
  September/89.

                      
	 
      	 
      

              

            

          

        

      

      

      
        
          
             

          

          
            - 26-

            
              

            

          

          
             

          

        

      

      

      
        
          	 
      	
                  Geological
      exploration - Underground Mining in BOCA GRANDE Mining Company located in
      Canton Pasaje, El Oro province, from January 1990 to September
      1993.

                
	 
      	 
      
	 
      	
                  Geological
      exploration - Underground miner for A . GRANDA C. Mining Company in the
      area of Molleturo, Azuay province, from January to April
    1998.

                
	 
      	 
      
	 
      	
                  Audit
      of the Information of Mining production of LEON 1 area, code No. 2364,
      corresponding to 2001 and 2002 years in February 2003.

                
	 
      	 
      
	 
      	
                  Audit
      of the Report of Mining Production of LA VIÑA area, code No. 310,
      corresponding to 2002 year, in March 2003 ; in March 2004;, in March 2005;
      and in March 2006.

                
	 
      	 
      
	 
      	
                  Audit
      of the Report of Commercial Mining Production of the ASSOCIACIÓN MINEROS
      INDEPENDIENTE AUTÓNOMOS SOCIEDADES MULUNCAY area, Code No. 338,
      corresponding to the years of 2002 - 2003, in March 2004 and in 2004, in
      March 2005.

                
	 
      	 
      
	 
      	
                  Audit
      of the Report of Mining Production of ANDREIMA area, Code No. 700114,
      corresponding to 2003, in March 2004, and in March
2005.

                
	 
      	 
      
	 
      	
                  Audit
      of the Report of Mining Production of LORRAINE area, Code No. 318,
      corresponding to 2004, March 2005; March 2006, and March
    2007.

                
	 
      	 
      
	 
      	
                  Audit
      of the Report of Mining Production of NUEVA ESPERANZA area, Code 152,
      corresponding to 2004 year, and March 2005.

                
	 
      	
                  Audit
      of the Report of Mining Production of LIMONCITO area, Code No. 2017,
      corresponding to 2003, March 2004, and March 2005.

                
	 
      	
                   
      

                
	 
      	
                  Audit
      of the Report of Mining Production of CAROLINA J-A area, Code No. 300148,
      corresponding to 2005, March 2006, and March 2007.

                
	 
      	 
      
	 
      	
                  Audit
      of the Report of Commercial Mining Production of SAN FERNANDO 1 area, code
      No. 6231.1, corresponding to 2005 - March 2006.

                
	 
      	 
      
	 
      	
                  Audit
      of the Report of Commercial Mining Production of AMAYA and AMAYA II areas,
      codes No. 300385 and 300659, respectively corresponding to March
      2006.

                

        

      

      
        
           

        

        
          - 27-

          
            

          

        

        
           

        

      

      

      
        
          
            
              
                
                  	 
      	
                          Audit of the Report of Commercial Mining Production of PINGLIO 1 area, Code
      No. 6, corresponding to 2005- March 2006, and 2006 - June
      2007.

                        
	 
      	 
      
	 
      	
                          Geologic
      exploration - Underground Miner at Asociación de Producción, Beneficio,
      Fundición, Refinación, Comercialización de Oro y Otros Minerales “PLAYAS
      DE DAUCAY” in Canton Chilla, El Oro province, from January 2006 to
      date.

                        
	 
      	 
      
	
                          SEMINARIES

                        	
                          Economy
      and Policy of Hydrocarbons at the University of Guayaquil
      from February 21 to 25, 1983.

                        
	 
      	 
      
	 
      	
                          Civil
      Work Blast with Explosives at Escuela Politécnica del Litoral
      (University), from July 27 to 29, 1983.

                        
	 
      	 
      
	 
      	
                          Seminary
      and Workshop on Opaque Mineral Identification, at the University of
      Guayaquil, from June 11 to 23, 1984.

                        
	 
      	 
      
	 
      	
                          Evaluation
      of
      Hidrocarbon
      Deposits, at
      the
      University of Guayaquil,
      from November 12 to 16, 1984.

                        
	 	 
	
                          CONGRESS

                        	
                          III
      Geologic International Congress of Mining in the city of Guayaquil,
      from October 8 to 11, 1991.

                        
	 	 
	
                          COURSE

                        	
                          Training
      course on Mining Audit at the University of Guayaquil from October to
      Noviember 2001.

                        
	 
      	 
      
	
                          POSTGRADUATE

                        	
                          Degree
      in Business Management, Post graduate diploma equivalent to 15 credits, at
      the center of Superior Studies of Business Management of the University of
      Guayaquil from May 6 to July 16, 2000.

                        
	 
      	 
      
	
                          CERTIFICATE

                        	
                          Certificate
      of Registry of the Undersecretary’s office of Mines of the Ministry of
      Energy and Mines of the Republic of Ecuador as
      MINING CONSULTANT-AUDITOR, Registry No. 046, January 11,
      2003.

                        

                

              

            

          

        

      

      

      Ing.
Góel. WILMER
CASTRO VACA

      Consultor
– Auditor Minero

      Registro
046 SUBSECRETARIA DE MINAS

      Machala, 13 de febrero del 2008

      
        
           

        

        
          - 28-REPORT
ON EXPLORATION POTENTIAL 

     

    MULUNCAY
EPITHERMAL GOLD PROJECT 

     

    PORTOVELO-ZARUMA-AYAPAMBA
AREA 

     

    PROVINCE
OF EL ORO, ECUADOR

    

    Latitude
3° 36' 30” South, Longitude
79° 40' West

    

    Written For:  Minera Del Pacifico, S.A.

     

    Prepared By:

    

    
      	
              D.
      Bain, B.Sc., P.Geo.

            	 
      	
              49
      Midale Crescent

            
	
              Consulting
      Geologist

            	 
      	
              London,
      Ontario,

            
	
              DUNCAN
      BAIN CONSULTING LTD.

            	 
      	
              Canada
      N5X 3C2

            
	
              E-mail: djbain@aol.com

            	 
      	
              November
      30, 2006

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    i

    TABLE OF CONTENTS

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          	
                                                  SUMMARY

                                                	 	
                                                  1

                                                
	 
      	 	 
      
	
                                                  INTRODUCTION

                                                	 	
                                                  3

                                                
	 
      	 	 
      
	
                                                  TERMS
      OF REFERENCE

                                                	 	
                                                  3

                                                
	 
      	 	 
      
	
                                                  RELIANCE
      ON OTHER EXPERTS

                                                	 	
                                                  4

                                                
	 
      	 	 
      
	
                                                  PROPERTY
      DESCRIPTION AND LOCATION

                                                	 	
                                                  6

                                                
	 
      	 	 
      
	
                                                  ACCESSIBILITY,
      CLIMATE, PHYSIOGRAPHY,

                                                	 	
                                                   

                                                
	
                                                  LOCAL
      RESOURCES AND INFRASTRUCTURE

                                                	 	
                                                  7

                                                
	 
      	 	 
      
	
                                                  HISTORY

                                                	 	
                                                  9

                                                
	 	 	 
	
                                                  GEOLOGICAL
      SETTING

                                                	 	
                                                  11

                                                
	
                                                  Regional

                                                	 	
                                                  11

                                                
	
                                                  Concession

                                                	 	
                                                  13

                                                
	 	 	 
	
                                                  DEPOSIT
      TYPES

                                                	 	
                                                  13

                                                
	 	 	 
	
                                                  MINERALIZATION

                                                	 	
                                                  14

                                                
	
                                                  Regional

                                                	 	
                                                  14

                                                
	
                                                  Concession

                                                	 	
                                                  16

                                                
	 	 	 
	
                                                  EXPLORATION

                                                	 	
                                                  17

                                                
	
                                                  Historical

                                                	 	
                                                  17

                                                
	
                                                  Current

                                                	 	
                                                   19
      

                                                
	 	 	 
	
                                                  DRILLING

                                                	 	
                                                  20

                                                
	 	 	 
	
                                                  SAMPLING
      METHODS AND APPROACH

                                                	 	
                                                  20

                                                
	 	 	 
	
                                                  SAMPLE
      PREPARATION, ANALYSES AND SECURITY

                                                	 	
                                                  20

                                                
	 	 	 
	
                                                  DATA
      VERIFICATION

                                                	 	
                                                  23

                                                
	 	 	 
	
                                                  ADJACENT
      PROPERTIES

                                                	 	
                                                  23

                                                
	 	 	 
	
                                                  MINERAL
      PROCESSING AND METALLURGICAL TESTING

                                                	 	
                                                  23

                                                
	 	 	 
	
                                                  MINERAL
      RESOURCES

                                                	 	
                                                  24

                                                
	
                                                  Mine
      Planning

                                                	 	
                                                  24

                                                
	
                                                  Exploration
      Potential

                                                	 	
                                                  24

                                                
	
                                                  Measured
      and Indicated Resources

                                                	 	
                                                  24

                                                
	
                                                  Inferred
      Resources

                                                	 	
                                                  25

                                                

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    ii

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  INTERPRETATION AND CONCLUSIONS

                                	 	
                                  26

                                
	 
      	 	 
      
	
                                  RECOMMENDATIONS

                                	 	
                                  27

                                
	 
      	 	 
      
	
                                  ESTIMATED
      PHASE 1 BUDGET

                                	 	
                                  28

                                
	 
      	 	
                                   
      

                                
	
                                  ESTIMATED
      PHASE 2 BUDGET

                                	 	
                                  29

                                
	 
      	 	 
      
	
                                  BIBLIOGRAPHY

                                	 	
                                  30

                                
	 
      	 	 
      
	
                                  CERTIFICATE
      OF QUALIFICATIONS – Duncan J. Bain, P.Geo.

                                	 	
                                  31

                                
	 
      	 	 
      
	
                                  APPENDIX
      1 – Assay Certificate

                                	 	
                                  32

                                
	 
      	 	 
      
	
                                  APPENDIX
      2 – Aguacate Assays, former owners

                                	 	
                                  36

                                
	 
      	 	 
      
	
                                  Table
      1 - Muluncay Concession Boundary Coordinates

                                	 	
                                  7

                                
	 
      	 	 
      
	
                                  Table
      2 – Preliminary Sampling, Aguacate Mine

                                	 	
                                  19

                                
	 
      	 	 
      
	
                                  Plate
      1 – Typical Topography and Vegetation, area of Casa Negra Concession with
      concession along Rio Amarillo at centre-right

                                	 	
                                  8

                                
	 
      	 	 
      
	
                                  Plate
      2 – Typical Mine-Mill Complex, Muluncay Concession

                                	 	
                                  16

                                
	 
      	 	
                                   
      

                                
	
                                  Plate
      3 – Underground Workings, Muluncay Concession; average vein width 1.0
      m

                                	 	
                                  17

                                
	 
      	 	 
      
	

                                  FIGURES

                                	 	

                                  After
      Page

                                
	 	 	 
	
                                  1.
      General Location Map

                                	 	
                                  6

                                
	 
      	 	 
      
	
                                  2.
      Regional Location Map

                                	 	
                                  6

                                
	 
      	 	 
      
	
                                  3.
      Claim Map

                                	 	
                                  6

                                
	 
      	 	 
      
	
                                  4.
      Regional Stratigraphy

                                	 	
                                  10

                                
	 
      	 	 
      
	
                                  5.
      Regional Structures

                                	 	
                                  10

                                
	 
      	 	 
      
	
                                  6.
      Concession Map

                                	 	
                                  22

                                

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    1

    Summary

     

    The
Portovelo-Zaruma-Ayapamba district of southern Ecuador has been mined for gold
and silver for centuries. The Incas were already extracting gold and silver in
the area prior to the arrival of the Spanish conquistadors in 1549. For
450 years exploitation of the Zaruma and Portovelo gold mines has continued.
Modern exploration, development and mining methods were applied with the arrival
of SADCO in the late 1800s. Since 1905, the earliest available mining records,
SADCO mining activities have produced in excess of 4.5 million oz. (144 million
grams) of gold, when the cut-off grade for ore was 14.5 g/T
gold.  SADCO left in 1950. Only local mining continued for the next 40
years. Starting in the early 1990s, TVX and IAMGOLD have acquired and explored
much of the district. In November 2006 Minera Nevada acquired a 100% interest in
the Muluncay Project. It is centred at Latitude 03o36 ́30” South and Longitude
79o 40’ West, a distance of 175 kilometres south and 60 kilometres southeast of
the major Pacific port cities of Guayaquil and Machala, respectively. The
Muluncay Project lies approximately 100 km west of the Aurelian gold district
and 120 km south of IAMGOLD’s multi-million ounce Quimsacocha deposit. IAMGOLD
hold a series of concession surrounding the Muluncay concession. These three
gold districts are part of a regional epithermal mineralizing system which
covers the southern half of Ecuador. The local population is experienced in the
recognition and mining of narrow vein gold deposits, making them a valuable
asset for future exploration, development and production throughout the entire
region.

     

    Triassic
age Tahuin Series gneisses, schists and amphibolites, overlain by Capiro
Formation mica schists, phyllites and quartzites  form the
basement  rocks of the region. This basement is unconformably overlain
by Celica Formation massive andesitic lavas and tuffs. The Celica Formation is
intruded by small Lower Cretaceous age diorite/granodiorite plutons. This entire
mass has been interpreted as a continental volcanic arc. These units are
unconformably overlain by Oligocene Saraguro Formation felsic volcanic lavas and
pyroclastics, and by later Miocene age Chincillo Formation (Pisayambo Formation)
rhyolite flows and pyroclastics. There are two major regional faults, the Pinãs
Fault and the Puente Busa –Palestina Fault, which have produced three tectonic
blocks with down-dropped sides to the SW. Celica Formation mafic to intermediate
volcanics lie between these two faults. Within the Celica Formation is the
Portovelo Series andesitic lavas. Two hydrothermally altered intermediate
composition volcanic series and their subvolcanic feeder systems unconformably
overlie the Celica Formation. They are composed of intermediate pyroclastics and
breccias, crosscut by younger rhyolite stocks, dykes and sills.

     

    Significant
second order structures include NW, NE and N-S trending high-angle faults. The
N-S trending veins, dipping generally 70o to 90o NE, are the dominant
structures for hosting gold, silver, lead, zinc and copper
mineralization.  Propylitic,  argillic,  silicic  and
sericitic  alteration  form
concentric  district-size  zones. These represent a Miocene
collapse caldera. Supergene enrichment of gold mineralization is recognized.
Silicification represents the core of this alteration “aureole”. The deposits
are classified as adularia-sericite low- to intermediate sulphidation epithermal
gold system.

     

    Regionally
these mineralized veins extend horizontally for at least 15 km (the
Portovelo-Zaruma-Ayapamba region), and have known depths of at least 1500 m.
Past-producing veins in the district range from 60 cm to 8 m, with an average
width of 1.3 m. “Stringers” and narrow veins, as well as silicified wallrock,
are virtually untested for their gold potential. As is typical in a standard
epithermal gold system, there are some zones of “bonanza-type”
high-grade  gold mineralization  (locally termed
“clavos”)  in the 30 to 200 g/tonne range. Veins within the Muluncay
concession include a minimum of 2 major veins. Unexplored and undeveloped veins
are also present. Structures are oriented NNW.

     

    Current
exploration by Minera Nevada involved a site visit by the author to the district
and to a series of mine workings within the Muluncay concession. Within the
concession several samples of vein material were taken by the author from the
Jena and Cristina veins, which are strong and persist through the entire
concession over a known depth of 200 m and a strike length of 1500 m. Gold
values from these samples range up to 10.40 g/T.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2

    Numerous
samples taken by the author in other workings within the concession show values
of up to 58.6 g/T gold, up
to 209 g/T silver, up to 4.86% copper and up to 16.85% zinc.

     

    SADCO
operated mines in the Zaruma-Portovelo-Ayapamba district for 46 years. During
this time approximately 3.6
million ounces of gold and 12 million ounces of silver were produced. Production
rates at the Grand Mine, the major producer in the district, are estimated up to
a maximum of 200,000 tonnes per year, and gold grades were approximately 20-30
g/T. Significant quantities of silver, lead and zinc were also produced. SADCO
operated its mines during the years when the price of gold was US$20-$35/ounce.
Despite a commodity price low by today’s standards the company was profitable
because of the high grades of ore available for mining.

     

    The old
SADCO operations, scattered throughout the district, generally (with the
exception of the Grand Mine) only extended to a depth of approximately 200m
below surface. The Grand Mine contains a gold-mineralized zone which extended to
a depth of at least 660 m below surface. It was collared at an elevation 700 m
below mine workings in the Muluncay concession area. This indicates that there
is significant additional potential at depth of up to 1500 m for most of the
concession in the district, including those veins contained within the Muluncay
concession. A preliminary estimate of the resource is made by the author on the
Muluncay Concession, from the two currently active veins (Jena and Cristina)
with an estimated strike length of 1 km, an average width of 1.0 m and an
average depth of 1000 m. Using the SADCO cut-off grade of 14.6 g/T as the
average grade below current workings, this would produce an estimated tonnage of
400,000 T for each vein, or a total current resource of 800,000
T, for a total of 11,680,000 g (365,000 oz) gold. Should additional veins be
found during exploration (known but not presently developed) then that tonnage
estimate would increase significantly. Secondary veins, stringers, breccia and
disseminated mineralization in the wallrocks have never been exploited, or even
properly assessed. It is the author’s opinion that with improved, more economic
mining and milling methods this resource can be taken advantage of, so that it
is probable that a resource of greater than 1.6 million tonnes, with a somewhat
lower grade in the order of 12 g/T (due to dilution by secondary veins and
disseminations)  could produce 19,200,000
g (600,000 oz) Au. No estimate of the value derived from silver or sulphide
concentrate has been made, but it would add a significant amount to the value of
this resource. The history of the Zaruma mining operations indicates that there
is a significant opportunity to apply modern mining methods to a major resource
which has had only limited exploitation in the past. 

    Near-term
exploration should consist of the surface mapping and prospecting. Stream
sediment sampling and lithogeochemical sampling should be carried out to check
for sulphide content, halo effects, alteration patterns and pathfinder elements.
Airphoto/satellite  imagery should be examined to outline structures.
All current or past underground workings should be mapped, surveyed and sampled
to develop an idea of size and grade of ore blocks. Sampling should include not
only vein material but wallrock to at least a metre on either side of each vein
sample. Surface and underground samples should be taken approximately every 3 m
along the vein. Analysis of all samples would be for gold by Fire Assay and
other elements by ICP-MS. This Phase 1 program is estimated to cost $107,000.00
USD.

     

    Using the
underground sampling data an underground diamond drill program would be
conducted. This work would produce a more detailed estimate of grade and tonnage
for the current mine workings and for the concession. Estimated cost of this
Phase 2 program is approximately $178,000.00 USD. Further work is dependent on
the results of this program.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3

    INTRODUCTION

     

    The
Zaruma-Portovelo-Ayapamba district of southern Ecuador has been a prolific
producer of both gold and silver for over 450 years. No records of mine
production exist for the first 300 years, but since 1905, over a period of only
50 years, mining activities have produced in excess of 4.5 million ounces of
gold, when the cut-off grade for ore was 14.6 g/T gold. The district, an area of
150 km2, contains at
least 15 major veins. Artesanal mining has continued to the present but lack of
funding has prevented the use of modern exploration and mining methods to
significantly increase reserves and maintain historical high grades, both along
strike of these structures and to depth. Strike length of major veins can range
up to 1 kilometre. Depth potential can range up to 1500 m where current mining
has exploited only the first 200 m below surface.

     

    This
report has been prepared at the request of Minera Nevada S.A. and is intended to
document the potential of the Muluncay concession for hosting one or more
gold-silver-lead-zinc-copper deposits of sufficient grade and tonnage to be
economically viable.

    

    TERMS OF REFERENCE

     

    The
writer has been requested by Minera Nevada S.A. to make a site visit to the
Muluncay Gold Project and to make a preliminary assessment of the Project for
hosting sufficient quantities of various mineral commodities to allow those
commodities to be mined and processed at a profit.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    4

    For the
purpose of this Technical Report the author, Duncan J. Bain, B.Sc.(Geology),
P.Geo. is an independent Qualified Person in accordance with National Instrument
43-101 and as defined in the CIM
Standards on Mineral Resources and Reserves.

    

    Grade and
tonnage numbers are reported by various authors in a variety of forms, some of
which include ounces per ton or % per ton. Distance measurements are often
reported in feet. Wherever possible these numbers have been converted to metric
equivalents, such as grams per tonne or % per tonne, and metres or centimetres,
with the original values inserted to show the conversion.

    

    This
report is to be submitted to regulatory bodies including the British Colombia
Securities Commission and is to be used by the Company to raise funds for
further exploration on the Project.

    

    RELIANCE ON OTHER EXPERTS

     

    The
author, Mr. Duncan J. Bain, P.Geo., visited the Portovelo-Zaruma district,
including the Muluncay Project, from June 26 to July 3, 2006. The author also
visited the district and was on the Muluncay Property on September 2 to 10,
2006. He was joined by Mr. Al Beaton, P.Eng., Mining Engineer and Mr. J.Ed
Dhonau, a representative of Minera Del Paciofico, S.A. These site visits
included both underground and surface observations of exploration, development
and mining activities both within the district and on several of the mine
workings located within the Muluncay concession. Detailed mapping and sampling
of these and the other mines of the concession have not been carried out during
these two visits. However, in September samples of vein material were taken by
the author from the underground workings of the Muluncay concession. This
material was considered by the author to be highly prospective for containing
economic gold values and was taken to confirm mineralization being mined
economically by local miners, and to compare with metal values taken by other
parties and reported in historical studies of the district. A sampling program
had been carried out by the previous owner from various mine sites within the
concession. These are included in this report. The field trip also gave the
author a detailed appreciation of the topography, climate, infrastructure and
workforce available in the area.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    5

    In the
compilation of this Report the author relied on the advice and experience in
underground mining provided by Mr. Al Beaton, P.Eng. (B.C.), who is a Mining
Engineer with over 35 years experience. From 1970 to 1974 Mr. Beaton worked at a
large underground copper mine in Zambia. From 1974 to 1979 he worked at
Cominco’s lead-zinc open pit Sullivan Mine in southern British Columbia, Canada.
From 1979 to 1986 he was Mine Manager at Erikson Gold Mine at Cassiar, B.C. He
has spent the last 25 years specialized in contract work and consulting, with
the majority of that involved in small underground track and trackless mining
operations in the Cordillera of British Columbia.

    

    The
author has not relied, without verification by the author, on a report or
statement of an expert who is not a Qualified Person as laid out in accordance
with National Instrument 43-101.

    

    The
author has received and reviewed the registered ownership documents covering the
concession that makes up the Muluncay Project. However the author has not formed
a legal opinion of the documentation.

    

    All
projections and opinions in this report have been prepared on the basis of
information made available to the author, and are subject to uncertainties and
contingencies which are difficult to accurately predict. Nevertheless, the
author considers this report to be a true and accurate representation of the
preliminary assessment of the mineral potential of the Muluncay
Project.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    6

    DESCRIPTION AND LOCATION

     

    In
November, 2006 Minera Del Pacifico S.A. acquired a 100% interest in the workings
contained by the Aguacate Mine from Sr. Manuel Lopez of Muluncay, Province of El
Oro, state of Ecuador. This is located within the centre of the Muluncay
concession (Figure 6). The owner directs those seeking additional
information on the ownership issue to representatives of the Minera
Nevada.

    

    
      The
Muluncay concession lies in the centre of the Portovelo-Zaruma mining camp,
which is found in the cantons of Ayapamba and Paccha, Province of El Oro,
southern Ecuador. It is centered at Latitude 03o 36’ 30” South and Longitude
79o40’ West (Figure 1, 2, 3). It covers an area of 374 hectares.  Boundary
co-ordinates for the Project are found in Table 1 below. These are based on a
metric UTM grid system referenced to PSAD-56 datum and geographic zone
17.

    

    

    Table 1 – Muluncay Boundary Coordinates

    

    
      
        
          
            
              
                
                  
                    
                      	
                              Easting
      - m

                            	 	
                              Northing
      - m

                            
	
                              652000

                            	 	
                              9599400

                            
	
                              653100

                            	 	
                              9599400

                            
	
                              653100

                            	 	
                              9596800

                            
	
                              651600

                            	 	
                              9596800

                            
	
                              651600

                            	 	
                              9599000

                            
	
                              652000

                            	 	
                              9599000

                            
	
                              652000

                            	 	
                              9599400

                            

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    7

    The
project is situated about 175 kilometres southeast and 60 kilometres east of the
major Pacific port cities of Guayaquil and Machala, respectively. It lies on the
western slope of the Andes Mountains, part of the Western Cordillera which runs
the length of the west coast of North and South America.

    

    ACCESSIBILITY, CLIMATE, PHYSIOGRAPHY, 

    LOCAL RESOURCES AND INFRASTRUCTURE

     

    Access to
the district from the coast is by a paved 2-lane road in good condition. It is
approximately a 2 hour drive from the coastal city of Machala to the town of
Portovelo, at the confluence of the Rio Amarillo and Rio Calera. From within the
district access to most of the properties, including the Muluncay concession, is
by secondary 1- to 2-lane paved roads which often continue to specific sites by
tertiary single lane gravel roads, usually though not always in good enough
condition for 2 wheel drive vehicles. Access to these sites from Portovelo takes
approximately 30 minutes.

    

    The
climate is subtropical and humid with temperatures ranging from 18o to 30o C. Yearly rainfall
averages 1,341 mm, with heaviest rainfalls occurring in the months from January
to June.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    8

    Within
the district, hill slopes are moderately steep to very steep with elevations
ranging from the 950 to 1650 m above sea level (ASL). The
Portovelo-Zaruma-Ayapamba district is  traditionally an underground
mining camp. Those areas not disturbed by mining activity are used for
farmlands, grazing and local minor secondary forestry. Any early stages of
surface exploration work carried out by Minera Nevada will involve minimal
disruption to current surface activities. Underground exploration, including
additional drifting, sampling, mapping and possible drilling should have even
less of an effect than the surface work.

    

    

    

    Plate 1 – Typical Topography and Vegetation, area of Muluncay Concession

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    9

    The
population within the project area is approximately 50,000. Zaruma, with a
population of 29,000,
and Portovelo, with a population of 14,000 make up the majority, but there are
numerous small villages of a few hundred people each (e.g. Ayapamba, Muluncay).
The population has extensive experience in the recognition and mining of narrow
vein high-grade gold deposits, making them a valuable asset for future
exploration, development and production throughout the entire region. Hotels,
food and material supplies, communication resources, public security and
government institution representatives are all available locally, and in Pinãs,
approximately 20 km distance to the west. High-tension power lines providing
electricity are connected to both Zaruma and Portovelo. Cell phone use in this
area allows communication with major centres in the country. The Rio Amarillo
and Rio Calera rivers are able to supply adequate water for large scale mining
operations throughout the year.

    

    HISTORY

     

    The hills
of Portovelo, Zaruma and Ayapamba have been mined for gold and silver for
centuries. The Incas were already extracting gold and silver in the area with
hydraulic mining of the oxidized parts of veins when Mercadillo, one of
Pizzarro ́s force, followed the Rio Amarillo
upstream, encountered the Inca mine and founded the town of Zaruma in
1549 (Holly and Maynard, 2006). Exploitation of the Zaruma and Portovelo
districts continued during the time of Spanish colonization until 1870 when an
Ecuadorian-Chilean mining company was established. Operational rights were
immediately acquired by Southern American Development Company (SADCO), a
subsidiary of a major American mining company. SADCO operated the mines from
1897 to 1950 by gaining control of the district’s main gold deposits in 1897.
The most extensively mined of these workings was the Grand Shaft on the Casa
Negra concession, on the eastern edge of the town of Portovelo. Exploration
programs of SADCO commenced in 1896 and brought the Grand Mine into production
at 108t/day in 1905. The mine was subsequently deepened to 13 level, 800m below
the uppermost workings. In the 53 years that followed, SADCO recovered some 3.5
million ounces (approx. 112 million grams) of gold and 12 million ounces (384
million grams) of silver from 7.6 million tonnes(T) of ore at a cut- off grade
of 14.6 g/T Au and 48.9 g/T Ag (Van Thournout et al., 1996). The lower levels of
the Grand Mine were flooded in 1944, and facing increasing costs, taxes and a
complicated political situation, SADCO withdrew from Ecuador in 1950. A
state-owned company, CIMA, took over the mining operations in the area until
1980 and it is estimated to have produced a further 375,000 ounces (12 million
grams) of gold by 1965. In 1984, thousands of poverty-stricken miners invaded
the old SADCO pits and small-scale and artesanal mining has been going on in the
area ever since. An additional 35,000 to 50,000 ounces (1.12 to 1.6 million
grams) of gold has been produced each year since then by informal miners,
small-scale operating mining societies and family-owned operations. Statistical
information from the 1990 ́s reported that mining from the Zaruma and Portovelo
areas totalled 3 million tonnes (T).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    10

    In the
mid-1990s several overseas companies attempted to consolidate the area and
carried out systematic exploration programs. From 1995 to 1996 TVX Corporation,
a Canadian exploration company, conducted underground and surface mapping. After
TVX Corp. withdrew from Ecuador in 1998 all information was acquired by IAMGOLD.
IAMGOLD continued with more extensive exploration programs including surface
trenching, surface and underground sampling, surveying, diamond drilling and
geological modelling. The author does not currently have direct access to this
data and is relying in large part on reports published by IAMGOLD on SEDAR
(www.sedar.com) and other Internet sites. The author visited
the district in late June/July 2006, and in September 2006.
This report is the result of those site visits and review of available data. In
November 2006 Minera
Nevada acquired a 100% interest in the Aguacate Mine within the Muluncay
concession, giving it the right to mine within the concession.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    11

    GEOLOGICAL SETTING 

    Regional

     

    
      Regional
geology of the southern part of Ecuador consists of basement rocks of the
Triassic age Tahuin Series. These include San Roque Formation medium- to
high-grade gneisses, schists and amphibolites overlain by a thick sequence of
Capiro Formation low-grade mica schists, phyllites and quartzites, with a minor
component of interfingering volcanic rocks.

      

      This
metamorphic basement is unconformably overlain by a thick sequence of Lower
Cretaceous age Celica Formation massive, homogeneous volcanic lavas and tuffs.
These are of andesite composition and are intercalated with minor sedimentary
layers. The Celica Formation is intruded by small plutons of diorite to
granodiorite composition, also Lower Cretaceous in age. This entire mass has
been interpreted as a continental volcanic arc. All of these units are capped
unconformably by Tertiary (Oligocene age) Saraguro Formation felsic volcanic
lavas and pyroclastics, and by later Miocene age Chincillo Formation (currently
referenced as Pisayambo Formation) rhyolite flows and pyroclastic.

      

      There are
two major regional faults. These are the Pinãs Fault and the Puente Busa
–Palestina Fault. These faults have produced three tectonic blocks which have
exposed bedrock to different depths. Between these two faults exposure consists
of Celica Formation mafic to intermediate volcanics. Within the Celica Formation
(Figure 4) is a thick series of andesitic lavas termed the Portovelo Series
which occurs along a central N-S trending axis. These lavas act as host rocks to
most of the vein systems in the Portovelo-Zaruma-Ayapamba  region.
Recent mapping has shown that the Celica Formation is unconformably overlain by
two hydrothermally altered volcanic series, and is crosscut by their subvolcanic
feeder systems. These volcanics are composed of intermediate pyroclastics and
breccias, crosscut by younger small rhyolite stocks, dykes and sills. These
rhyolitic rocks are concentrated along two NW trends in the central mountain
ranges (Zaruma-Urca and Santa Barbara) and are due to resistant weathering
caused by regional silicification. Most of the district vein-cavity fillings,
including base- and precious metals mineralization, are closely associated with
this volcanic activity.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    12

    
      Significant
structures in the district (Figure 5) include NW, NE and N-S trending high- and
low- angle faults and circular structures. The N-S trending veins, dipping
generally 70o to 90o   NE, are the dominant though not the only
structures for hosting gold, silver, lead, zinc and copper mineralization in the
district. They are bound to the SW by the NW-trending Pinas Fault. The Puente
Busa –Palestina Fault lies directly NE of the centre of the district and does
not interfere with the continuity of either faults, veins or mineralization
beyond it to the NE.

    
      Concentric
district-size zones of propylitic, argillic, silicic and sericitic alteration
cover the region and represent the collapse of a Miocene age volcano and the
formation of a caldera. Supergene enrichment of gold mineralization is
recognized in certain areas by the presence of strong patches of argillic
alteration. Silicification represents the core of this alteration “aureole”.
Silicification formed in two stages. One type, associated with most of the
gold-silver-base metals mineralization, is related to the Portovelo-Zaruma axis.
The second type is found in the Santa Barbara Mountain and is associated with
rhyolite dykes and plugs, and with intense argillic alteration. A third type of
silicification  is found as wallrock alteration haloes of
quartz-chlorite-sericite-adularia-calcite-(pyrite).

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    13

    Concession

     

    
      Bedrock
underlying the Muluncay concession consists of Lower Cretaceous age Celica
Formation massive volcanic lavas of andesitic composition. To the author’s
knowledge no detailed mapping has been carried out on these host rocks. Within
these host rocks a series of sub-parallel structures. These local area
structures encompass both those veins found within the Muluncay concession, such
as Jen and Cristina. This system of veins is the northern continuation of the
large system of veins (e.g. Abundancia, Portovelo) which have been so vigorously
mined in the Zaruma-Portovelo area for the last 400
years.

    DEPOSIT TYPES

     

    
      Gold
mineralization within the district is considered to be a low- to intermediate
sulphidation stage epithermal (Hedenquist, 2000) to upper mesothermal
gold-silver-lead-zinc-copper system. Typically this type of mineralizing system
includes pyrite-pyrrhotite-arsenopyrite and high-Fe sphalerite. Gangue minerals
vary from vein through stockwork to disseminated forms. Gold is typically
associated with quartz-adularia ± calcite ± sericite. This contrasts with
high-sulphidation types which typically contain
gold-pyrite-enargite-luzonite-covellite hosted by a leached residual core, with
quartz-alunite, kaolin, pyrophyllite or diaspore. A subset of the
low-sulphidation stage assemblage contains
pyrite-tetrahedrite/tennantite-chalcopyrite and low-Fe sphalerite. This subset
is also silver and base metal rich compared to low-sulphidation end members.
Base metals within the Muluncay veins, as well as within much of the district
mineralization be an indicator for this intermediate assemblage. It could also
indicate (especially the presence of significant galena – (lead)) that the
system has reached upper mesothermal depths.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
       

      14

      MINERALIZATION

      Regional

      

      The gold
bearing north-south trending sub-parallel systems of quartz veins occurring
within the Portovelo-Zaruma district are found exclusively within the Cretaceous
altered andesitic rocks (Portovelo Series).

       

      Spatially
the mineralization is arranged in three zones. In Zone 1 pyritization with
little gold is seen in stockwork, shattering and brecciation around the Santa
Barbara and Zaruma Mountains. Zone 2 contains gold-bearing quartz and
quartz-adularia veins with abundant sulphides and is found in the
Portovelo-Zaruma axis and NE of the Santa Barbara Mountains. A large aureole of
gold-bearing quartz-calcite and quartz-chlorite , with abundant sulphosalts and
minor sulphides, representing Zone 3, surrounds the core of sulphide
mineralization. Muluncay lies within the NNW continuation of this Zone 2 type of
mineralization. Based on the presence of adularia-sericite, the vein textures,
the abundance of sulphides and calcite, the mineralization is considered to be
part of an adularia-sericite low- to intermediate sulphidation epithermal gold
system.

      

      The
quartz veins are predominately fault and fracture filling structures exhibiting
pinch and swell, branching, composite banding, braided and loop
features.

      

      Regionally
these mineralized veins extend horizontally for at least 15 km (the
Portovelo-Zaruma- Ayapamba region), and have known depths of at least 1500 m
(from local height of land to known depth of the Casa Negra Concession SADCO
Grand Mine). Past-producing veins in the district range from 60 cm to 8 m, with
an average width of 1.3 m. “Stringers” and narrow veins, as well as silicified
wallrock, are virtually untested for their gold potential. As is typical in a
standard epithermal gold system, there are some zones of “bonanza-type”
high-grade gold mineralization (locally termed “clavos”) in the 30 to 200
g/tonne range. Clavos of this grade were reported by the owner on the Muluncay
concession on one of the major veins (Cristina or Jen).

    

    
      
        

          
            
               

            

            
               

              
                

              

            

            
               

            

          

        

      

    

     

    15

    
      Most of
the known gold is free-milling. Other mineralization includes silver (as
electrum, sulphosalts and with galena) and copper-lead-zinc sulphides
(chalcopyrite-galena-sphalerite).

      

      The
dominant north-south strike of the gold bearing quartz veins shows local
variations in the proximity of cross faults. To the south of Rio Amarillo, the
veins swing in a south-east direction, sub-parallel to the Pinas-Portovelo
fault.

      

      Three
main types of gold bearing veins are present in the district. These are: 1)
Quartz veins with disseminated pyrite, minor chlorite as streaks, bands and
patches, and 2) Quartz veins with abundant pyrite and subordinate chalcopyrite,
galena and sphalerite occurring as bands, patches and coarse disseminations, and
3) Carbonate veins with coarse calcite and calcite-quartz gangue occasionally
with coarse galena, sphalerite and chlorite beside ubiquitous pyrite. Visible
gold is not a common occurrence within the Portovelo-Zaruma-Ayapamba district.
As a general rule, gold occurs as fine particles, often less than 100 mesh in
size. According to microscopic studies carried out in the past, gold locally
replaces sphalerite. Locally gold mineralization is present in the wall rock
following north-east trending faults and fractures.

      

      Post
mineralization faulting along north-west striking cross faults has locally
caused displacements of up to 40 metres in several gold bearing structures.
Local detailed mapping and drilling is required to trace the continuity of this
mineralization.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    16

    Concession

    

    
      Veins
within the Muluncay concession include Jen and Cristina. Other veins exist
parallel to these two main structures but are not presently developed. The
mineralization in the concession area ranges from a gold : silver ratio of 1:10
near surface to 1:15 at depth. Veins range up to 1500 m in strike length, and
mines in the immediate area range from 1650 m ASL to 950 m ASL, giving a known
depth of mineralization of at least 700 m. Vein widths range from 0.40 m to 1.40
m and are steeply dipping (70° to 90°) to the NE.

      

    

    

     

    

    Plate 2 –Typical Mine-Mill Complex, Muluncay Concession

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    17

    The Jen
and Cristina veins consisted of milky quartz, being hard but brittle, and
containing chalcopyrite (copper), sphalerite (zinc) and galena (lead) sulphide
minerals. This mineralization is similar to that found in the Portovelo-Zaruma
area, where it is quite common. The principal mineral accompanying the gold is
pyrite (FeS2), but
other minerals include safflorite (CoAs2),
proustite (Ag3AsS3),
tetrahedrite (Cu3SbS3-4),
freibergite ((CuAg2ZnFe)3Sb2S6) and minor Au-Pb
telluride minerals. These are indicative of a low-temperature near-surface
environment.

     

    

    

    Plate 3 –
Underground Workings, Muluncay Concession; average vein width

    

    EXPLORATION 

    Historical

    
      

      Systematic
exploration activity closely related to mining advance was carried out by SADCO
from 1897 to 1950. However, only limited information is available from that
period. Detailed underground maps  and 103,657 assay result records
have been recovered from local miners and from local archives by TVX Gold Corp.
and IAMGOLD. Much of the SADCO data can be acquired from certain parties in
Machala, and Minera Nevada is in the process of purchasing that
data.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
       

    

    18

    Modern
exploration activity within the Zaruma – Portovelo Mining District begun in 1995
when a one-year property area consolidation and district-scale exploration was
made by TVX Gold Corporation, a Canadian-based company. During this period, over
40 km of underground workings were surveyed and mapped on a 1:500 scale. Total
amount of underground samples collected by TVX is estimated to be over 4,000.
IAMGOLD reported 733 samples although many of these were from older maps and
reports. Following TVX ́s withdrawal from Ecuador in 1998, all information was
acquired by IAMGOLD who continued exploration. This work including surface
trenching, surface and underground sampling, surveying and diamond drilling and
geological modelling.  IAMGOLD databases contained the
following:

    
       

      680
surface rocks channel and chip samples

      2,126
underground channel samples

      5,415
soil samples

      37
diamond drill hole results including sample assay results

      1,114 DDH
core samples

      2,591
topographical control points survey

      39 stream
sediments samples

      369
channel samples form surface trenching

       

      The
Aguacate Mine has been mapped by previous owners. Although the map is presently
unavailable information on sample sites and assays is found in Appendix 2. The
author is confident that the data is reliable within the limits imposed by a
lack of check samples and standard Quality Control protocols. Data is available
from the author on the other mines within the concession but are not included in
this report.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      19

      Current

       

      
        Current
exploration by Minera Nevada involved a site visit by the author to the Muluncay
concession. The author visited at three separate mines within the concession.
These included Fatima, Nueva Esperanza 1 and Aguacate (see Figure 6). Numerous
other workings are present within the concession but were not investigated at
this time. Several samples of vein material were taken by the author from the
various workings. Assay results (see certificates, Appendix 1) are shown in
Table 2 below:

      

       

      Table 2 – Assays from
Independent Sampling, Mina Aguacate, Sept/06

      

      
        
          
            	
                    Sample

                  	 	
                    Au

                    g/T

                  	 	 	
                    Ag

                    g/T

                  	 	 	
                    Cu

                    %

                  	 	 	
                    Pb

                    %

                  	 	 	
                    Zn

                    %

                  	 
	
                    483051

                  	 	 	0.013	 	 	 	0.70	 	 	 	0.053	 	 	 	0.001	 	 	 	0.02	 
	
                    483052

                  	 	 	0.015	 	 	 	7.0	 	 	 	0.089	 	 	 	0.02	 	 	 	0.02	 
	
                    483053

                  	 	 	0.361	 	 	 	16.5	 	 	 	0.26	 	 	 	0.009	 	 	 	0.06	 
	
                    483054

                  	 	 	2.76	 	 	 	37.1	 	 	 	0.85	 	 	 	0.03	 	 	 	0.19	 
	
                    483055

                  	 	 	6.64	 	 	 	36.4	 	 	 	0.82	 	 	 	0.06	 	 	 	0.15	 
	
                    483056

                  	 	 	3.25	 	 	 	23.8	 	 	 	0.69	 	 	 	0.03	 	 	 	0.21	 
	
                    483057

                  	 	 	10.40	 	 	 	27.4	 	 	 	0.30	 	 	 	0.07	 	 	 	0.09	 

          

        

      

       

      Gold
values from these samples range up to 10.40 g/T. Numerous samples taken by the
author in other workings within the concession (# 483029 to 438050) show values
of up to 58.6 g/T gold, up to 209 g/T silver, up to 4.86% copper and up to
16.85% zinc.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    20

    DRILLING

    
       

      Although
modern diamond drilling has been carried out on the IAMGOLD claims, the author
does not currently have access to the positions or logs of those holes.
Therefore he has no knowledge of drilling done within the Muluncay concession.
Minera Nevada has conducted no drilling on the concession to this
date.

       

      SAMPLING METHODS AND
APPROACH

       

      As this
was a preliminary investigation of the entire district, with no specific focus
at the time of
the visits on the Muluncay concession, the only intent of these assay results
was to confirm assay values presented by other groups. The width of the vein (as
well as could be seen) at each of these sample points was measured and recorded.
The average width of these veins is 1.0 m, although the width can range up to 4
m.

       

      The
samples were bagged and sealed on the property by the author. They, along with
several other samples from the district, were delivered by the author to the
office of Minera Nevada S.A., based in Machala. From that office they were
transported to the ALS-Chemex lab in Quito, Ecuador for sample preparation and
analysis. The samples were collected by the author and by Mr. Al Beaton, P.Eng.
The samples weighed approximately 1 to 2 kg each. No blanks and standards were
submitted by the author with the sample for Quality Control
purposes.

       

      SAMPLE PREPARATION, ANALYSES
AND SECURITY

      General

       

      For the
multi-element analysis of 35 elements, Induced Coupled Plasma Mass Spectrometry
(ICP- MS) was used. Au and Ag content was determined by Fire Assay-Atomic
Absorption method from 30 g
pulps. Pulps and rejects will be stored by the lab for a minimum of 90
days.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      21

      Sample Preparation
Procedures

       

      Samples
were dried at 110-120°C and then crushed with either an oscillating jaw crusher
or a roll crusher. The lab Quality Control (QC) specification for crushed
material is that >70% of the sample must pass a 2 mm (10 mesh) screen. The
entire sample is crushed, but typically 250 g to 1 kg, is subdivided from the
main sample by use of a riffle splitter. If splitting is required, a substantial
part of the sample (the "reject" or “spare”) remains. A whole or split portion
derived from the crushing process is pulverized using a ring mill. QC
specification for final pulverizing is that >85% of the sample be less than
75 microns.

      

      Analytical
Methods

      ICP-MS
Method

       

      In plasma
mass spectroscopy, the inductively coupled argon plasma (ICP) is used as an
excitation source for the elements of interest. The plasma in ICP-MS is used to
generate ions that are then introduced to the mass spectrometer. These ions are
then separated and collected according to their mass to charge ratios. The
constituents of an unknown sample can then be identified and measured. ICP-MS
offers extremely high sensitivity to a wide range of elements. It is a
multielement analytical technique capable of determining an extremely wide range
of elements to very low detection limits (typically sub ppb).

      

      Detection
limits for this method are shown below. Values are in ppm or
percent.

       

      
        
          
            	
                    Ag

                  	 
      	
                    (0.2 - 100)

                  	 
      	 
      	
                    Co

                  	 
      	
                    (1 - 10,000)

                  	 
      	 
      	
                    Mn

                  	 
      	
                    (5 - 10,000)

                  	 
      	 
      	
                    Sr*

                  	 
      	
                    (1 - 10,000)

                  	 
      
	
                    Al*

                  	 
      	
                    (0.01% - 15)%

                  	 
      	 
      	
                    Cr*

                  	 
      	
                    (1 - 10,000)

                  	 
      	 
      	
                    Mo

                  	 
      	
                    (1 - 10,000)

                  	 
      	 
      	
                    Ti*

                  	 
      	
                    (0.01% - 10)%

                  	 
      
	
                    As

                  	 
      	
                    (2 - 10,000)

                  	 
      	 
      	
                    Cu

                  	 
      	
                    (1 - 10,000)

                  	 
      	 
      	
                    Na*

                  	 
      	
                    (0.01% - 10)%

                  	 
      	 
      	
                    Tl*

                  	 
      	
                    (10 - 10,000)

                  	 
      
	
                    B*

                  	 
      	
                    (10 - 10,000)

                  	 
      	 
      	
                    Fe

                  	 
      	
                    (0.01% - 15)%

                  	 
      	 
      	
                    Ni

                  	 
      	
                    (1 - 10,000)

                  	 
      	 
      	
                    U

                  	 
      	
                    (10 - 10,000)

                  	 
      
	
                    Ba*

                  	 
      	
                    (10 - 10,000)

                  	 
      	 
      	
                    Ga*

                  	 
      	
                    (10 - 10,000)

                  	 
      	 
      	
                     P

                  	 
      	
                    (10 - 10,000)

                  	 
      	 
      	
                    V

                  	 
      	
                    (1 - 10,000)

                  	 
      
	
                    Be*

                  	 
      	
                    (0.5 - 100)

                  	 
      	 
      	
                    Hg

                  	 
      	
                    (1 - 10,000)

                  	 
      	 
      	
                    Pb

                  	 
      	
                    (2 - 10,000)

                  	 
      	 
      	
                    W*

                  	 
      	
                    (10 - 10,000)

                  	 
      
	
                    Bi

                  	 
      	
                    (2 - 10,000)

                  	 
      	 
      	
                     K*

                  	 
      	
                    (0.01% - 10)%

                  	 
      	 
      	
                     S

                  	 
      	
                    (0.01% - 10)%

                  	 
      	 
      	
                    Zn

                  	 
      	
                    (2 - 10,000)

                  	 
      
	
                    Ca*

                  	 
      	
                    (0.01% - 15)%

                  	 
      	 
      	
                    La*

                  	 
      	
                    (10 - 10,000)

                  	 
      	 
      	
                    Sb

                  	 
      	
                    (2 - 10,000)

                  	 
      	 
      	 
      	 
      	 
      	 
      
	
                    Cd

                  	 
      	
                    (0.5 – 500)

                  	 
      	 
      	
                    Mg*

                  	 
      	
                    (0.01% - 15)%

                  	 
      	 
      	
                    Sc*

                  	 
      	
                    (1 - 10,000)

                  	 
      	 
      	 
      	 
      	 
      	 
      

          

        

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      22

      Fire Assay
Method

       

      Gravimetric
methods involve the use of balances to weigh the element of interest, either in
its pure elemental form or as a chemical compound. One of the most common
gravimetric determinations is that of gold and silver following a fire assay
fusion and cupellation. The precious metal bead that remains following
cupellation is an alloy of silver and gold. Weighing this bead will give the
total weight of silver and gold. If the bead is then treated with dilute nitric
acid, it is possible to remove the silver quantitatively. The residual mass
consists of pure gold which can then be weighed separately, thus allowing the
silver to be determined by the difference. The balances used for this purpose
are microbalances capable of weighing to the nearest microgram (one millionth of
a gram). The fire assay procedure is universally accepted as the definitive
method for the analysis of gold. When an atomic absorption spectroscopy finish
is selected, the upper reporting limit is set at 10 g/T (0.3 oz/ton) and samples
higher than this must be re-analyzed using additional silver in the firing
process and a larger dilution factor. Alternatively, gravimetric finish can be
used.

      

      Security

      

      No blanks
or samples with known values were added to the total samples delivered to the
lab. No check samples were submitted to other labs for confirmation of values.
For any sample preparation activities the lab maintains sample sequence
logs.  These logs detail which samples have been prepared in what
order and are very helpful for investigative purposes.

      

      Analyses

      

      The assay
certificate was received by e-mail from ALS-Chemex to the author only. A hard
copy of the results arrived in the mail to the author only. Those certificates
are found in Appendix 1.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      23

      DATA
VERIFICATION

       

      Although
positions of many of the samples taken by earlier workers on the Project are
known, because this was a preliminary assessment of the Project to simply
confirm values, data verification is only on a very general basis.

      

      ADJACENT
PROPERTIES

      

      The
Muluncay Project lies surrounded by of the IAMGOLD concessions (Figure 3).
Current activities by IAMGOLD can be found in their news releases on SEDAR.
Minera Nevada also holds the Grand Shaft, of Casa Negra concession. It lies
south of Muluncay, and although veins at Casa Negra may not extend continuously
to Muluncay, the general trend of mineralized veins does. North of Muluncay this
trend swings NW and continues through the Maria Olivia concession.

      

      MINERAL PROCESSING AND
METALLURGICAL TESTING

      

      The
current artesanal miners of the various mining operations within the Muluncay
concession operate a series of Chilean mills (crushing facilities) which are
used to liberate free-milling gold from the quartz and sulphide gangue. A
lead-zinc-copper concentrate is also produced which is stockpiled for possible
future processing. Production from these mills is low, averaging perhaps 30
tonnes per day with a head grade (ore grade) of 3-4 g/T (local miner, personal
communication). This grade is due to hundreds of years of hand mining of only
high grade (> 20 g/T to hundreds of g/T) gold. Up to this point a lack of
funding has prevented those locals from conducting any extensive underground
development, but based on SADCO mine plans for the Grand Mine and others there
is every reason to believe that high grade mineralization continues to a depth
of up to 1500 m below surface.

      

      To the
author’s knowledge no metallurgical testing has been carried out on the Muluncay
veins.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      24

      MINERAL
RESOURCES

      Mine
Planning

      

      At this
time Minera Nevada has no plans to take this Project to production. A detailed
investigation of the surface geology and underground workings is required to
confirm and outline estimated tonnage and grade.

      

      SADCO
operated mines in the Zaruma-Portovelo-Ayapamba district for 46 years. During
this time approximately 3.6 million ounces of gold and 12 million ounces of
silver were produced. Production rates at the mine are estimated up to a maximum
of 200,000 tonnes per year, and gold grades were approximately 20-30 grams per
tonne. Significant quantities of silver, lead and zinc were also produced as
by-products. Flotation was used to produce a concentrate which was sold to
smelters to recover the lead and copper and some additional gold and silver.
SADCO operated during the years when the price of gold was controlled at
US$35/ounce. Notwithstanding, the company was profitable because of the high
grades of ore available for mining.

      

      Exploration
Potential

      Measured and Indicated
Resources

      

      The
author visited 3 known operating mines (Fatima, Nueva Esperanza and Aguacate)
within the Muluncay concession. Figure 6 shows numerous other mine workings.
However, there are no known records of measured or indicated reserves from the
concession.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      25

      Inferred
Resources

      

      Note that
neither the “reserve” nor the “resource” estimates referred to in this report
comply with the current definition of such reserves as stated in National
Instrument 43-101 F1 or in the CIM Standards on Mineral Resources and Reserves.
Also note that commodity prices used to estimate ore cutoff grades by previous
operators have changed significantly from those used by SADCO. Like so many
veins in the district which have been exploited for centuries, the near-surface
easily accessible high-grade gold mineralization is being exhausted. It is
currently extracting ore in the range of 3-7 g/T gold. It is the author’s
opinion that new investment and detailed exploration will show that there is
continuity of historical high-grade mineralization both along strike and at
depth. The old SADCO operations generally (with the exception of the Grand Mine)
only extended to a depth of approximately 200m below surface. The Grand Mine
contains a gold-mineralized zone which extended to a depth of at least 660 m
below surface. It was collared at an elevation 700 m below mine workings in the
Muluncay concession area. This indicates that there is significant additional
potential at depth of up to 1500 m for most of the concessions in the district,
including those veins contained within the Muluncay concession. A preliminary
estimate of the resource is made by the author on the Muluncay Concession, from
the two currently active veins (Jena and Cristina) with an estimated strike
length of 1 km, an average width of 1.0 m and an average depth of 1000 m. Using
the SADCO cut-off grade of 14.6 g/T as the average grade below current workings,
this would produce an estimated tonnage of 400,000 T for each vein, or a total
current resource of 800,000 T, for a total of 11,680,000 g (365,000 oz) gold.
Should additional veins be found during exploration (known but not presently
developed) then that tonnage estimate would increase significantly. Secondary
veins, stringers, breccia and disseminated mineralization in the wallrocks have
never been exploited, or even properly assessed. It is the author’s opinion that
with improved, more economic mining and milling methods this resource can be
taken advantage of, so that it is probable that a resource of greater than 1.6
million tonnes, with a somewhat lower grade in the order of 12 g/T (due to
dilution by secondary veins and disseminations) could produce 19,200,000 g
(600,000 oz) Au. No estimate of the value derived from silver or sulphide
concentrate has been made, but it would add a significant amount to the value of
this resource. The history of the Zaruma mining operations indicates that there
is a significant opportunity to apply modern mining methods to a major resource
which has had only limited exploitation in the past.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      26

      INTERPRETATIONS AND
CONCLUSIONS

       

      Descriptions
of gangue and ore minerals, as well as the style of structures and their
continuity along strike and to significant depth, indicates that the
Portovelo-Zaruma-Ayapamba gold camp represents a low/intermediate sulphidation
epithermal to upper mesothermal gold-silver base metals system associated with
the structures related to a Miocene age collapse caldera.

      

      The
history of the Zaruma mining operations indicates that there is a significant
opportunity to apply modern mining methods to a major resource which has had
only limited exploitation in the past. It is the author’s opinion, based on site
visits to various mines and mills in the district, and having reviewed reports
on the district produced by other mining and exploration personnel, that there
is significant additional mineral potential at depth of up to 1500 m for most of
the concessions in the district. This includes those veins, both developed and
known but undeveloped, contained within the Muluncay
concession.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      27

      RECOMMENDATIONS

      

      Near-term
exploration should consist of the following. Within the concession the surface
should be mapped and prospected in detail. Stream sediment sampling and
lithogeochemical sampling should be carried out. These surface samples would be
analyzed for gold by Fire Assay, with A.A. or gravimetric finish. Other elements
would be tested for a 35-element suite by Induced Coupled Plasma (ICP-MS) to
check for sulphide content, halo effects, alteration patterns and pathfinder
elements such as mercury and antimony. Airphoto or similar satellite imagery
should be examined to outline structural elements within the area, and to assist
in tracing continuity of known mineralized structures. Concurrent with this work
all current or past underground workings should be mapped, surveyed and sampled
to develop an idea of size and grade of ore blocks. Sampling should include not
only vein material but wallrock to at least a metre on either side of each vein
sample. Samples should be taken approximately every 3 m along the vein. Analysis
of these samples would be for gold by Fire Assay and other elements by ICP-MS.
This Phase 1 program is estimated to cost $107,000.00 USD.

      

      Using the
underground sampling data an underground diamond drill program would be
conducted to show continuity of known mineralized veins and to discover new
mineralized veins, stringer zones and disseminations. This work would produce a
more detailed estimate of grade and tonnage for the current mine workings and
for the concession. Cost of this Phase 2 program is an estimated $178,000.00
USD. Further work is dependent on the results of this program.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      28

      ESTIMATED PHASE 1
BUDGET

      

      
        
          
            
              
                
                  
                    
                      	
                              Surface
      mapping of the concession, estimate 5 days X 2 persons X $300 per
      day

                            	 	$	3000.00	 
	 
      	 	 	 	 
	
                              Sampling
      of surface veins and silicified zones, approx. 30 samples, 2 person X 5
      days X $200 per day

                            	 	$	2000.00	 
	 
      	 	 	 	 
	
                              Stream
      sediment sampling, approx. 50 samples, 2 persons X 5 days X $300 per
      day

                            	 	$	3000.00	 
	 
      	 	 	 	 
	
                              Surveying
      of all underground workings, 2 persons X 25 days X $200 per
      day

                            	 	$	10,000.00	 
	 
      	 	 	 	 
	
                              Mapping
      of all underground workings, 2 persons X 30 days X $200 per
      day

                            	 	$	12,000.00	 
	 
      	 	 	 	 
	
                              Detailed
      sampling of all underground veins, approximately every 3 m, estimate 500
      samples, 3 persons X 20 days X $300 per day

                            	 	$	18,000.00	 
	 
      	 	 	 	 
	
                              Assaying
      of surface and underground samples, including preparation, transport to
      Quito, sample 35 element ICP-MS and gold by Fire Assay-AA/ gravimetric
      Finish, $35 per sample, estimate 600 samples

                            	 	$	21,000.00	 
	 
      	 	 	 	 
	
                              Local
      accommodation and meals, 3 persons X 30 days X $100/day

                            	 	$	9,000.00	 
	 
      	 	 	 	 
	
                              Mobilization/demobilization  of
      crew

                            	 	$	5,000.00	 
	 
      	 	 	 	 
	
                              Report,
      with recommended work

                            	 	$	5,000.00	 
	 
      	 	 	 	 
	
                              Contingencies at 15% on
    $88,000

                            	 	$	12,000.00	 
	 
      	 	 	 	 
	
                              Sub-total

                            	 	$	100,000.00	 
	 
      	 	 	 	 
	
                              GST on $100,000.00

                            	 	$	7,000.00	 
	 
      	 	 	 	 
	
                              TOTAL
      COST, Phase 1 Program

                            	 	$	
                              107,000.00USD

                            	 

                    

                  

                

              

            

          

        

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      29

       

      ESTIMATED PHASE 2
BUDGET

       

      
        
          
            
              
                
                  
                    
                      	
                              Underground
      diamond drilling, 1500 m at $40 per metre

                            	 	$	60,000.00	 
	 
      	 	 	 	 
	
                              Geologist,
      60 days at $300 per day

                            	 	$	18,000.00	 
	 
      	 	 	 	 
	
                              Sampler/splitter,
      60 days at $200 per day

                            	 	$	12,000.00	 
	 
      	 	 	 	 
	
                              Mobilization/demobilization
      of crew

                            	 	$	15,000.00	 
	 
      	 	 	 	 
	
                              Local
      accommodation and meals, 6 persons X 60 days X $100/day

                            	 	$	36,000.00	 
	 
      	 	 	 	 
	
                              Report,
      with recommended work

                            	 	$	5000.00	 
	 
      	 	 	 	 
	
                              Contingencies at 15% on
      $146,000.00

                            	 	$	22,000.00	 
	 
      	 	 	 	 
	
                              Sub-total

                            	 	$	168,000.00	 
	 
      	 	 	 	 
	
                              GST on $168,000.00

                            	 	$	10,000.00	 
	 
      	 	 	 	 
	
                              TOTAL
      COST, Phase 2 Program

                            	 	$	
                              178,000.00USD

                            	 

                    

                  

                

              

            

          

        

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      30

      Bibliography

      

      Andrade,
G. and Faldez, M., 2001, Exploration Report, Minanca’s Concesion.

      

      Dodd,
K.C. 2006, A Preliminary Summary of the Zaruma Gold Project in Ecuador.
unpublished Company Report for Dynasty Metals and Mining Inc.

      

      Hedenquist,
J.W., Arribas R., A. and Gonzalez-Urien, E., 2000, Exploration for Epithermal
Gold Deposits. In Soc. Ec. Geol. Reviews, vol. 13, p. 245-277

      

      Holly,
W.J., and Maynard, A.J., 2006, Form 43 -101F1 Technical Report, Independent
Preliminary Assessment, Zaruma Project, El Oro Province, Ecuador. SEDAR
published Company Report For Dynasty Metals And Mining Inc.

      

      Kalinaj,
M., 2004, Zaruma Project, Ecuador, Technical Report. Unpublished Company Report
for Dynasty Metals and Mining Inc.

      

      Marikovsky,
Z., 1958, Estudio Geologico-Minero Sobre La Mina Cerro de Oro (Ayapamba),
Distrito Minero Canton Zaruma, Ecuador. Unpublished Company Report for CIMA
(Compania Industrial Minera Asociada, S.A.)

      

      Maynard,
A.J., 2005, Independent Geological Evaluation, Zaruma Project, El Oro Province,
Ecuador.  Unpublished Company Report for Dynasty Metals and Mining
Inc.

      

      Speechly,
B., 2005, Mine Plan for the Zaruma Gold Project. Unpublished Company Report for
Dynasty Metals and Mining Inc.

      

      Spencer,
R.M., Montenegro, J.L.,Galbar, A., Perez, E.P, Manilla, G.,Viera,F. and Spencer,
C.E., 2002: The Portovelo-Zaruma Mining Camp, Southwest Ecuador. in Porphyry and
Epithermal Environments. SEG Newsletter, Society of Economic Geologists, 2002,
Number 49, 14 p.

      

      Van
Thournout, Salemink, J., Valenzuela, G., Merlyn, M., Boven, A. and Muchez, P.,
1996, Portovelo: a volcanic-hosted epithermal vein-system in Ecuador, South
America. Mineralium Deposita 31, pp. 269-276

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      31

      STATEMENT
OF QUALIFICATIONS STATEMENT OF
QUALIFICATIONS

       

      I,
DUNCAN JAMES BAIN, of the CITY of LONDON, in the PROVINCE of ONTARIO, do herein
certify that:

      

      I am a
Consulting Geologist and reside at 49 Midale Crescent, London, Ontario, Canada
N5X 3C2.

      

      I
graduated from the University of Western Ontario in London, Ontario, and
received my Bachelor of Science degree in Geology in 1977. I have practised
continuously as an exploration, development and mine geologist from that time
until the present.

      

      I am a
Fellow of the Geological Association of Canada.

      

      I have
been a Professional  Geoscientist  (P.Geo) of the
Association  of Professional  Engineers  and
Geoscientists of British Columbia since 1991 and am also a Professional
Geoscientist (P.Geo.) in the Province of Saskatchewan (October 2003) and in the
Province of Ontario (October 2004).

      

      I was on
the Muluncay gold property in June 2006 and again in September
2006.

      

      This
report is based on a study of all information made available to me, both
published and unpublished. I am not aware of any material fact or material
change with respect to the subject matter of this technical report which is not
reflected in this technical report, the omission to disclose which makes the
technical report misleading.

      

      My
Company has been contracted to review the mineral potential of the Muluncay
property and produce a report on behalf of Minera Nevada S.A. Other than funds
paid for work performed, I am independent of the issuer based upon the tests set
out in National Instrument 43-101 section 1.5

      

      I have
read National Instrument 43-101 and Form 43-101F1, and the technical report has
been prepared in compliance with National Instrument 43-101 and Form 43-101F1. I
am a Qualified Person as defined in the CIM Standards on Mineral Resources and
Reserves.

      

      I consent
to the use of this report in a Prospectus, a Statement of Materials Facts or any
other form of filing required by Minera Nevada S.A., the British Columbia
Securities Commission or any other similar institution.

      

      DATED
in the CITY of LONDON, in the PROVINCE of ONTARIO, this 30th day of November,
2006.

       

      
        
          
            
              	
                      

                    	 
	
                      DUNCAN JAMES BAIN, B.Sc., F.G.A.C., P.Geo.

                    	 
	
                      Consulting Geologist

                    	 
	
                      DUNCAN BAIN CONSULTING LTD.

                    	 

            

          

        

      

      
        
          
            
              
                

                  
                    
                       

                    

                    
                       

                      
                        

                      

                    

                    
                       

                    

                  

                

              

            

          

        

      

       

      32

       

      APPENDIX
‘A’ – Assay Certificates

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    36

     

    APPENDIX
‘B’ – Aguacate Samples from Previous Owners

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    37

     

    
      
        
          
            
              	
                      MINA

                    	 	
                      XCOORD

                    	 	 	
                      YCOORD

                    	 	 	
                      ZCOORD

                    	 	 	
                      LENGTH

                    	 	 	
                      Sample
      ID

                    	 	 	
                      AU(0)

                    	 	 	
                      AU(1)

                    	 	 	
                      Au_PPB

                    	 	 	
                      Au_PPM

                    	 	 	
                      AG

                    	 	 	
                      CU

                    	 	 	
                      PB

                    	 	 	
                      ZN

                    	 
	
                      EL
      AGUACATE

                    	 	 	652167.76	 	 	 	9598281.99	 	 	 	1219.38	 	 	 	1.20	 	 	 	5199900100	 	 	 	108.00	 	 	 	93.00	 	 	 	100.50	 	 	 	0.101	 	 	 	10.1	 	 	 	2320	 	 	 	21	 	 	 	140	 
	
                      EL
      AGUACATE

                    	 	 	652167.87	 	 	 	9598279.85	 	 	 	1218.88	 	 	 	0.90	 	 	 	5199900200	 	 	 	111.00	 	 	 	84.00	 	 	 	97.50	 	 	 	0.098	 	 	 	11.3	 	 	 	3031	 	 	 	15	 	 	 	137	 
	
                      EL
      AGUACATE

                    	 	 	652168.45	 	 	 	9598278.02	 	 	 	1217.58	 	 	 	1.10	 	 	 	5199900300	 	 	 	3348.00	 	 	 	3825.00	 	 	 	3586.50	 	 	 	3.587	 	 	 	32.9	 	 	 	4927	 	 	 	54	 	 	 	189	 
	
                      EL
      AGUACATE

                    	 	 	652169.18	 	 	 	9598277.13	 	 	 	1216.98	 	 	 	1.20	 	 	 	5199900400	 	 	 	79.00	 	 	 	84.00	 	 	 	81.50	 	 	 	0.082	 	 	 	9	 	 	 	2204	 	 	 	29	 	 	 	174	 
	
                      EL
      AGUACATE

                    	 	 	652170.61	 	 	 	9598272.38	 	 	 	1214.48	 	 	 	1.00	 	 	 	5199900500	 	 	 	135.00	 	 	 	153.00	 	 	 	144.00	 	 	 	0.144	 	 	 	15.3	 	 	 	3310	 	 	 	27	 	 	 	132	 
	
                      EL
      AGUACATE

                    	 	 	652171.97	 	 	 	9598270.53	 	 	 	1212.68	 	 	 	1.20	 	 	 	5199900600	 	 	 	1591.00	 	 	 	1370.00	 	 	 	1480.50	 	 	 	1.481	 	 	 	23.1	 	 	 	6826	 	 	 	27	 	 	 	180	 
	
                      EL
      AGUACATE

                    	 	 	652172.59	 	 	 	9598269.70	 	 	 	1210.48	 	 	 	1.02	 	 	 	5199900700	 	 	 	1543.00	 	 	 	1662.00	 	 	 	1602.50	 	 	 	1.603	 	 	 	20.9	 	 	 	4338	 	 	 	47	 	 	 	231	 
	
                      EL
      AGUACATE

                    	 	 	652172.47	 	 	 	9598272.41	 	 	 	1210.48	 	 	 	1.00	 	 	 	5199900800	 	 	 	448.00	 	 	 	606.00	 	 	 	527.00	 	 	 	0.527	 	 	 	10.9	 	 	 	2230	 	 	 	37	 	 	 	118	 
	
                      EL
      AGUACATE

                    	 	 	652164.67	 	 	 	9598295.26	 	 	 	1218.47	 	 	 	1.50	 	 	 	5199900900	 	 	 	237.00	 	 	 	228.00	 	 	 	232.50	 	 	 	0.233	 	 	 	4.6	 	 	 	1216	 	 	 	25	 	 	 	73	 
	
                      EL
      AGUACATE

                    	 	 	652165.53	 	 	 	9598293.96	 	 	 	1217.47	 	 	 	1.60	 	 	 	5199901000	 	 	 	392.00	 	 	 	202.00	 	 	 	297.00	 	 	 	0.297	 	 	 	5.2	 	 	 	1444	 	 	 	21	 	 	 	143	 
	
                      EL
      AGUACATE

                    	 	 	652167.97	 	 	 	9598292.47	 	 	 	1212.47	 	 	 	1.50	 	 	 	5199901100	 	 	 	107.00	 	 	 	87.00	 	 	 	97.00	 	 	 	0.097	 	 	 	11.1	 	 	 	2525	 	 	 	31	 	 	 	164	 
	
                      EL
      AGUACATE

                    	 	 	652168.55	 	 	 	9598292.05	 	 	 	1211.27	 	 	 	0.80	 	 	 	5199901200	 	 	 	134.00	 	 	 	105.00	 	 	 	119.50	 	 	 	0.120	 	 	 	10.2	 	 	
                      1907

                    	 	 	 	32	 	 	 	150	 
	
                      EL
      AGUACATE

                    	 	 	652159.00	 	 	 	9598331.49	 	 	 	1216.06	 	 	 	1.40	 	 	 	5199901300	 	 	 	444.00	 	 	 	442.00	 	 	 	443.00	 	 	 	0.443	 	 	 	18.1	 	 	 	7929	 	 	 	22	 	 	 	157	 
	
                      EL
      AGUACATE

                    	 	 	652159.88	 	 	 	9598330.59	 	 	 	1215.06	 	 	 	1.00	 	 	 	5199901400	 	 	 	35.00	 	 	 	109.00	 	 	 	72.00	 	 	 	0.072	 	 	 	2.8	 	 	 	1048	 	 	 	4	 	 	 	194	 
	
                      EL
      AGUACATE

                    	 	 	652161.05	 	 	 	9598329.60	 	 	 	1213.46	 	 	 	1.30	 	 	 	5199901500	 	 	 	114.00	 	 	 	98.00	 	 	 	106.00	 	 	 	0.106	 	 	 	8.8	 	 	 	2438	 	 	 	10	 	 	 	178	 
	
                      EL
      AGUACATE

                    	 	 	652162.47	 	 	 	9598327.84	 	 	 	1214.26	 	 	 	1.50	 	 	 	5199901600	 	 	 	30.00	 	 	 	44.00	 	 	 	37.00	 	 	 	0.037	 	 	 	2.3	 	 	 	645	 	 	 	-2	 	 	 	181	 
	
                      EL
      AGUACATE

                    	 	 	652163.56	 	 	 	9598328.36	 	 	 	1211.86	 	 	 	1.50	 	 	 	5199901700	 	 	 	125.00	 	 	 	139.00	 	 	 	132.00	 	 	 	0.132	 	 	 	16	 	 	 	5244	 	 	 	22	 	 	 	60	 
	
                      EL
      AGUACATE

                    	 	 	652148.25	 	 	 	9598366.70	 	 	 	1224.80	 	 	 	1.90	 	 	 	5199901800	 	 	 	1084.00	 	 	 	1235.00	 	 	 	1159.50	 	 	 	1.160	 	 	 	20.7	 	 	 	4103	 	 	 	70	 	 	 	340	 
	
                      EL
      AGUACATE

                    	 	 	652148.84	 	 	 	9598367.66	 	 	 	1222.60	 	 	 	1.50	 	 	 	5199901900	 	 	 	119.00	 	 	 	125.00	 	 	 	122.00	 	 	 	0.122	 	 	 	12	 	 	 	2297	 	 	 	54	 	 	 	296	 
	
                      EL
      AGUACATE

                    	 	 	652148.92	 	 	 	9598369.60	 	 	 	1221.40	 	 	 	1.80	 	 	 	5199902100	 	 	 	1449.00	 	 	 	1372.00	 	 	 	1410.50	 	 	 	1.411	 	 	 	17.8	 	 	 	3201	 	 	 	63	 	 	 	183	 
	
                      EL
      AGUACATE

                    	 	 	652148.07	 	 	 	9598369.50	 	 	 	1223.60	 	 	 	1.80	 	 	 	5199902200	 	 	 	1986.00	 	 	 	1135.00	 	 	 	1560.50	 	 	 	1.561	 	 	 	23.3	 	 	 	3145	 	 	 	115	 	 	 	220	 
	
                      EL
      AGUACATE

                    	 	 	652149.89	 	 	 	9598371.88	 	 	 	1218.80	 	 	 	1.20	 	 	 	5199902300	 	 	 	26120.00	 	 	 	26580.00	 	 	 	26350.00	 	 	 	26.350	 	 	 	202	 	 	 	35000	 	 	 	3441	 	 	 	42000	 
	
                      EL
      AGUACATE

                    	 	 	652147.24	 	 	 	9598379.71	 	 	 	1213.83	 	 	 	1.10	 	 	 	5199902400	 	 	 	12410.00	 	 	 	11030.00	 	 	 	11720.00	 	 	 	11.720	 	 	 	90.2	 	 	 	13000	 	 	 	2759	 	 	 	12000	 
	
                      EL
      AGUACATE

                    	 	 	652147.19	 	 	 	9598376.85	 	 	 	1216.23	 	 	 	0.90	 	 	 	5199902500	 	 	 	24480.00	 	 	 	23450.00	 	 	 	23965.00	 	 	 	23.965	 	 	 	214	 	 	 	22000	 	 	 	3678	 	 	 	21000	 
	
                      EL
      AGUACATE

                    	 	 	652145.67	 	 	 	9598380.68	 	 	 	1216.43	 	 	 	1.40	 	 	 	5199902600	 	 	 	35320.00	 	 	 	36020.00	 	 	 	35670.00	 	 	 	35.670	 	 	 	150.5	 	 	 	14000	 	 	 	2246	 	 	 	8303	 
	
                      EL
      AGUACATE

                    	 	 	652145.79	 	 	 	9598382.66	 	 	 	1214.33	 	 	 	1.00	 	 	 	5199902700	 	 	 	11860.00	 	 	 	12810.00	 	 	 	12335.00	 	 	 	12.335	 	 	 	56	 	 	 	6225	 	 	 	214	 	 	 	246	 
	
                      EL
      AGUACATE

                    	 	 	652125.37	 	 	 	9598418.58	 	 	 	1217.44	 	 	 	1.30	 	 	 	5199902800	 	 	 	70.00	 	 	 	70.00	 	 	 	70.00	 	 	 	0.070	 	 	 	28.1	 	 	 	3832	 	 	 	52	 	 	 	288	 
	
                      EL
      AGUACATE

                    	 	 	652126.13	 	 	 	9598418.03	 	 	 	1216.64	 	 	 	0.90	 	 	 	5199902900	 	 	 	87.00	 	 	 	85.00	 	 	 	86.00	 	 	 	0.086	 	 	 	10.5	 	 	 	1216	 	 	 	46	 	 	 	294	 
	
                      EL
      AGUACATE

                    	 	 	652127.40	 	 	 	9598417.67	 	 	 	1215.64	 	 	 	0.90	 	 	 	5199903000	 	 	 	58.00	 	 	 	53.00	 	 	 	55.50	 	 	 	0.056	 	 	 	8.1	 	 	 	785	 	 	 	199	 	 	 	475	 
	
                      EL
      AGUACATE

                    	 	 	652128.63	 	 	 	9598416.68	 	 	 	1214.64	 	 	 	0.60	 	 	 	5199903100	 	 	 	59.00	 	 	 	70.00	 	 	 	64.50	 	 	 	0.065	 	 	 	24.6	 	 	 	2928	 	 	 	103	 	 	 	503	 
	
                      EL
      AGUACATE

                    	 	 	652119.29	 	 	 	9598445.39	 	 	 	1216.89	 	 	 	1.70	 	 	 	5199903200	 	 	 	39.00	 	 	 	40.00	 	 	 	39.50	 	 	 	0.040	 	 	 	8.2	 	 	 	942	 	 	 	285	 	 	 	589	 
	
                      EL
      AGUACATE

                    	 	 	652120.19	 	 	 	9598443.62	 	 	 	1215.49	 	 	 	1.70	 	 	 	5199903300	 	 	 	33.00	 	 	 	45.00	 	 	 	39.00	 	 	 	0.039	 	 	 	8.9	 	 	 	2296	 	 	 	127	 	 	 	539	 
	
                      EL AGUACATE

                    	 	 	652120.65	 	 	 	9598442.00	 	 	 	1213.89	 	 	 	1.50	 	 	 	5199903400	 	 	 	151.00	 	 	 	170.00	 	 	 	160.50	 	 	 	0.161	 	 	 	11.5	 	 	 	1353	 	 	 	83	 	 	 	362	 
	
                      EL
      AGUACATE

                    	 	 	652126.32	 	 	 	9598457.46	 	 	 	1213.54	 	 	 	0.40	 	 	 	5199903500	 	 	 	35.00	 	 	 	34.00	 	 	 	34.50	 	 	 	0.035	 	 	 	14.3	 	 	 	2113	 	 	 	143	 	 	 	711	 
	
                      EL
      AGUACATE

                    	 	 	652122.29	 	 	 	9598458.05	 	 	 	1213.54	 	 	 	0.60	 	 	 	5199903600	 	 	 	2299.00	 	 	 	2295.00	 	 	 	2297.00	 	 	 	2.297	 	 	 	16.1	 	 	 	2597	 	 	 	60	 	 	 	335	 
	
                      EL
      AGUACATE

                    	 	 	652116.27	 	 	 	9598457.48	 	 	 	1213.53	 	 	 	0.45	 	 	 	5199903700	 	 	 	462.00	 	 	 	637.00	 	 	 	549.50	 	 	 	0.550	 	 	 	79.1	 	 	 	1896	 	 	 	2842	 	 	 	378	 
	
                      EL
      AGUACATE

                    	 	 	652118.65	 	 	 	9598451.08	 	 	 	1213.16	 	 	 	0.60	 	 	 	5199903800	 	 	 	93.00	 	 	 	98.00	 	 	 	95.50	 	 	 	0.096	 	 	 	17.5	 	 	 	3298	 	 	 	73	 	 	 	217	 
	
                      EL
      AGUACATE

                    	 	 	652120.49	 	 	 	9598445.28	 	 	 	1213.19	 	 	 	0.90	 	 	 	5199903900	 	 	 	144.00	 	 	 	151.00	 	 	 	147.50	 	 	 	0.148	 	 	 	15.1	 	 	 	2406	 	 	 	126	 	 	 	267	 
	
                      EL
      AGUACATE

                    	 	 	652120.71	 	 	 	9598444.31	 	 	 	1213.19	 	 	 	1.10	 	 	 	5199904100	 	 	 	81.00	 	 	 	54.00	 	 	 	67.50	 	 	 	0.068	 	 	 	13.2	 	 	 	1517	 	 	 	106	 	 	 	256	 
	
                      EL
      AGUACATE

                    	 	 	652120.88	 	 	 	9598439.37	 	 	 	1213.23	 	 	 	1.10	 	 	 	5199904200	 	 	 	117.00	 	 	 	132.00	 	 	 	124.50	 	 	 	0.125	 	 	 	15.2	 	 	 	2937	 	 	 	65	 	 	 	332	 
	
                      EL
      AGUACATE

                    	 
      	 	652122.34	 	 	 	9598429.95	 	 	 	1213.27	 	 	 	0.30	 	 	 	5199904300	 	 	 	54.00	 	 	 	54.00	 	 	 	54.00	 	 	 	0.054	 	 	 	30.6	 	 	 	4814	 	 	 	78	 	 	 	1024	 
	
                      EL
      AGUACATE

                    	 	 	652134.00	 	 	 	9598411.09	 	 	 	1213.70	 	 	 	0.90	 	 	 	5199904400	 	 	 	322.00	 	 	 	285.00	 	 	 	303.50	 	 	 	0.304	 	 	 	12.7	 	 	 	1387	 	 	 	56	 	 	 	188	 
	
                      EL
      AGUACATE

                    	 	 	652140.33	 	 	 	9598400.71	 	 	 	1213.17	 	 	 	1.30	 	 	 	5199904500	 	 	 	1695.00	 	 	 	1827.00	 	 	 	1761.00	 	 	 	1.761	 	 	 	25.6	 	 	 	2685	 	 	 	153	 	 	 	109	 
	
                      EL
      AGUACATE

                    	 	 	652143.49	 	 	 	9598392.45	 	 	 	1212.92	 	 	 	1.00	 	 	 	5199904600	 	 	 	960.00	 	 	 	834.00	 	 	 	897.00	 	 	 	0.897	 	 	 	19	 	 	 	3295	 	 	 	107	 	 	 	159	 
	
                      EL
      AGUACATE

                    	 	 	652151.92	 	 	 	9598372.77	 	 	 	1212.56	 	 	 	1.00	 	 	 	5199904700	 	 	 	3917.00	 	 	 	4133.00	 	 	 	4025.00	 	 	 	4.025	 	 	 	42.9	 	 	 	15000	 	 	 	119	 	 	 	137	 
	
                      EL
      AGUACATE

                    	 	 	652148.83	 	 	 	9598364.24	 	 	 	1212.46	 	 	 	0.40	 	 	 	5199904800	 	 	 	14.00	 	 	 	14.00	 	 	 	14.00	 	 	 	0.014	 	 	 	5.4	 	 	 	975	 	 	 	89	 	 	 	327	 
	
                      EL
      AGUACATE

                    	 	 	652161.02	 	 	 	9598336.13	 	 	 	1212.32	 	 	 	0.80	 	 	 	5199904900	 	 	 	112.00	 	 	 	118.00	 	 	 	115.00	 	 	 	0.115	 	 	 	21.4	 	 	 	8132	 	 	 	41	 	 	 	188	 
	
                      EL
      AGUACATE

                    	 	 	652168.80	 	 	 	9598314.55	 	 	 	1211.47	 	 	 	1.00	 	 	 	5199905000	 	 	 	199.00	 	 	 	256.00	 	 	 	227.50	 	 	 	0.228	 	 	 	16.6	 	 	 	6499	 	 	 	20	 	 	 	106	 
	
                      EL
      AGUACATE

                    	 	 	652168.43	 	 	 	9598303.15	 	 	 	1211.04	 	 	 	1.10	 	 	 	5199905100	 	 	 	217.00	 	 	 	216.00	 	 	 	216.50	 	 	 	0.217	 	 	 	9.6	 	 	 	1496	 	 	 	28	 	 	 	79	 
	
                      EL
      AGUACATE

                    	 	 	652168.51	 	 	 	9598293.36	 	 	 	1211.00	 	 	 	1.00	 	 	 	5199905200	 	 	 	90.00	 	 	 	68.00	 	 	 	79.00	 	 	 	0.079	 	 	 	6.8	 	 	 	1465	 	 	 	24	 	 	 	115	 
	
                      EL
      AGUACATE

                    	 	 	652170.78	 	 	 	9598282.71	 	 	 	1210.79	 	 	 	0.90	 	 	 	5199905300	 	 	 	151.00	 	 	 	132.00	 	 	 	141.50	 	 	 	0.142	 	 	 	7.8	 	 	 	1140	 	 	 	68	 	 	 	88	 
	
                      EL
      AGUACATE

                    	 	 	652172.58	 	 	 	9598273.60	 	 	 	1210.48	 	 	 	1.00	 	 	 	5199905400	 	 	 	40950.00	 	 	 	37070.00	 	 	 	39010.00	 	 	 	39.010	 	 	 	30.7	 	 	 	3746	 	 	 	37	 	 	 	133	 

            

          

        

      

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    38

    
      
        
          	
                  EL
      AGUACATE

                	 	 	652173.21	 	 	 	9598262.89	 	 	 	1210.29	 	 	 	0.80	 	 	 	5199905500	 	 	 	165.00	 	 	 	188.00	 	 	 	176.50	 	 	 	0.177	 	 	 	9.8	 	 	 	2327	 	 	 	30	 	 	 	188	 
	
                  EL
      AGUACATE

                	 	 	652174.91	 	 	 	9598253.08	 	 	 	1210.33	 	 	 	1.30	 	 	 	5199905600	 	 	 	4248.00	 	 	 	4577.00	 	 	 	4412.50	 	 	 	4.413	 	 	 	25	 	 	 	4082	 	 	 	84	 	 	 	76	 
	
                  EL
      AGUACATE

                	 	 	652191.34	 	 	 	9598285.51	 	 	 	1210.05	 	 	 	0.40	 	 	 	5199905700	 	 	 	25.00	 	 	 	26.00	 	 	 	25.50	 	 	 	0.026	 	 	 	2.5	 	 	 	230	 	 	 	246	 	 	 	359	 
	
                  EL
      AGUACATE

                	 	 	652194.35	 	 	 	9598276.00	 	 	 	1210.79	 	 	 	0.40	 	 	 	5199905800	 	 	 	42.00	 	 	 	36.00	 	 	 	39.00	 	 	 	0.039	 	 	 	2.6	 	 	 	259	 	 	 	62	 	 	 	243	 
	
                  EL
      AGUACATE

                	 	 	652197.57	 	 	 	9598266.94	 	 	 	1210.60	 	 	 	0.80	 	 	 	5199905900	 	 	 	15.00	 	 	 	13.00	 	 	 	14.00	 	 	 	0.014	 	 	 	2	 	 	 	269	 	 	 	53	 	 	 	198	 
	
                  EL
      AGUACATE

                	 	 	652198.38	 	 	 	9598263.07	 	 	 	1210.51	 	 	 	0.80	 	 	 	5199906100	 	 	 	41.00	 	 	 	19.00	 	 	 	30.00	 	 	 	0.030	 	 	 	1.6	 	 	 	122	 	 	 	24	 	 	 	127	 
	
                  EL
      AGUACATE

                	 	 	652173.08	 	 	 	9598239.94	 	 	 	1210.28	 	 	 	1.10	 	 	 	5199906200	 	 	 	91.00	 	 	 	93.00	 	 	 	92.00	 	 	 	0.092	 	 	 	7.5	 	 	 	1801	 	 	 	39	 	 	 	486	 
	
                  EL
      AGUACATE

                	 	 	652174.56	 	 	 	9598246.27	 	 	 	1210.31	 	 	 	0.90	 	 	 	5199906300	 	 	 	40.00	 	 	 	35.00	 	 	 	37.50	 	 	 	0.038	 	 	 	7	 	 	 	703	 	 	 	268	 	 	 	211	 
	
                  EL
      AGUACATE

                	 	 	652107.86	 	 	 	9598218.56	 	 	 	1209.76	 	 	 	0.30	 	 	 	5199906400	 	 	 	1290.00	 	 	 	1238.00	 	 	 	1264.00	 	 	 	1.264	 	 	 	14.7	 	 	 	303	 	 	 	246	 	 	 	534	 
	
                  EL
      AGUACATE

                	 	 	652097.57	 	 	 	9598213.72	 	 	 	1209.75	 	 	 	0.70	 	 	 	5199906500	 	 	 	349.00	 	 	 	441.00	 	 	 	395.00	 	 	 	0.395	 	 	 	5.9	 	 	 	587	 	 	 	113	 	 	 	129	 
	
                  EL
      AGUACATE

                	 	 	652094.23	 	 	 	9598219.67	 	 	 	1209.96	 	 	 	1.00	 	 	 	5199906600	 	 	 	95.00	 	 	 	85.00	 	 	 	90.00	 	 	 	0.090	 	 	 	13.2	 	 	 	1285	 	 	 	354	 	 	 	684	 
	
                  EL
      AGUACATE

                	 	 	652094.42	 	 	 	9598216.36	 	 	 	1209.87	 	 	 	0.80	 	 	 	5199906700	 	 	 	226.00	 	 	 	165.00	 	 	 	195.50	 	 	 	0.196	 	 	 	17	 	 	 	3684	 	 	 	38	 	 	 	288	 
	
                  EL
      AGUACATE

                	 	 	652094.38	 	 	 	9598213.17	 	 	 	1209.78	 	 	 	1.10	 	 	 	5199906800	 	 	 	186.00	 	 	 	137.00	 	 	 	161.50	 	 	 	0.162	 	 	 	9.6	 	 	 	1823	 	 	 	71	 	 	 	280

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00156-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00156-of-00352.parquet"}]]