NI 43-101 Technical Report 2013 - Pasinex

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Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 1 of 76
NI43-101 TECHNICAL REPORT ON THE
GOLCUK LICENCE,
SIVAS PROVINCE,
TURKEY
Prepared For
Pasinex Resources Limited
501 – 133 Richmond Street West
Toronto
Ontario M5H 2L3
Canada
Prepared By
Brian H King Pr.Sci.Nat.
20 Arnolds Close
Barton on Sea
Hampshire
Great Britain BH25 7JW
July 12, 2013
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 2 of 76
Table of Contents
1 SUMMARY............................................................................................................................................. 6
2 INTRODUCTION...................................................................................................................................11
3 RELIANCE ON OTHER EXPERTS............................................................................................................12
4 PROPERTY DESCRIPTION AND LOCATION...........................................................................................13
5 ACCESS, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOLOGY...................................17
6 HISTORY ..............................................................................................................................................18
7 GEOLOGICAL SETTING AND MINERALISATION ...................................................................................27
8 DEPOSIT TYPES....................................................................................................................................33
9 EXPLORATION .....................................................................................................................................36
9.1 Re-Analysis of Soil Samples.........................................................................................................36
9.2 Geological Mapping ....................................................................................................................40
9.3 Outcrop Sampling .......................................................................................................................42
9.4 Adit Excavation............................................................................................................................46
10 DRILLING .........................................................................................................................................48
11 SAMPLE PREPARATION, ANALYSIS AND SECURITY .........................................................................56
12 DATA VERIFICATION........................................................................................................................57
13 MINERAL PROCESSING AND METALLURGICAL TESTING.................................................................59
14 MINERAL RESOURCE ESTIMATES ....................................................................................................61
15 MINERAL RESERVES ESTIMATES .....................................................................................................61
16 ADJACENT PROPERTIES...................................................................................................................61
17 OTHER RELEVANT INFORMATION...................................................................................................61
18 INTERPRETATION AND CONCLUSIONS............................................................................................61
19 RECOMMENDATIONS......................................................................................................................62
20 REFERENCES....................................................................................................................................64
21 CERTIFICATE OF AUTHOR, DATE AND SIGNATURE PAGE................................................................65
Appendix A Golcuk Exploration Licence .................................................................................................66
Appendix B Biricik Bengisu Dinçer Legal Opinion on Golcuk Licence Status..........................................67
Appendix C Onur Keskin Report on Legal Background to Golcuk Licence Status ..................................68
Appendix D Golcuk Operating Licence ...................................................................................................69
Appendix E Golcuk Forestry Permits......................................................................................................70
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 3 of 76
Appendix F Annual Production Commitment made by Eurasia Madencilik A.S. for the Golcuk Project
71
Appendix G Earthquake Risk at Golcuk ..................................................................................................72
Appendix H Note on Errors in Golcuk Historical Drilling Collar Locations..............................................74
Appendix I Assay Certificate for Borehole Check Analyses...................................................................76
List of Figures
Figure 1: Location map...............................................................................................................................11
Figure 2: Location map of the Golcuk Exploration Licence........................................................................14
Figure 3: Location plan of the Golcuk Operating Licence and Forestry Permits within the Golcuk
Exploration Licence. ....................................................................................................................................15
Figure 4: Graphic log of Etibank Borehole GS-2.........................................................................................19
Figure 5: Graphic log of Turmenka Borehole TGSJ-18. ..............................................................................20
Figure 6: Map produced by Eurasia summarising significant results of historical drilling at Golcuk, with
Pasinex observations in two grey boxes. Note northeast strike of surface mineralisation (orange
polygons).....................................................................................................................................................22
Figure 7: Eurasia soil sampling results in ppm for copper at Golcuk. ........................................................23
Figure 8: First Eurasia geology map of the Golcuk prospect (light colours) overlain on the 1:100,000 MTA
Map H39 Giresun, with later Eurasia mapping overlay (see Figure 16). ....................................................24
Figure 9: One 3D interpretation of Golcuk mineralisation by Eurasia, not supported by this report. ......25
Figure 10: Golcuk total field magnetic results with interpretation. ..........................................................25
Figure 11: Training IP lines (green) surveyed by the USGS over the main Golcuk mineralisation. ...........26
Figure 12: Regional geology map of the Golcuk Property (from MTA Map H39 Giresun). The legend for
this map is presented in the following figure. ............................................................................................27
Figure 13: Legend for regional geology map of the Golcuk Property in previous figure...........................28
Figure 14: Location map and regional geological-geographical setting of the eastern Pontide and central
Anatolian granitoids and surrounding region (Boztug, 2008). The upper inset shows the simplified
regional tectonic setting of Turkey and adjacent areas. [NAFZ– North Anatolian Fault Zone; IAESZ– IzmirAnkara-Erzincan Suture Zone; EAFZ– East Anatolian Fault Zone; BSZ– Bitlis Suture Zone; CACC– Central
Anatolian Crystalline Complex; DSFZ– Dead Sea Fault Zone].....................................................................29
Figure 15: Mucur Formation stratigraphic column according to Goncuoglu (1994). ................................30
Figure 16: Final detailed geological map of the Golcuk drilling area produced by Eurasia, overlain on
1:100,000 MTA Map H39 Giresun shown in Figure 12. ..............................................................................32
Figure 17: Turkey structural plate movement ...........................................................................................32
Figure 18: Schematic illustration of vein swarm control on copper deposition in the Sustut Basaltic
Copper deposit (Wilton, 1988). ..................................................................................................................34
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 4 of 76
Figure 19: Schematic illustration of fault control on copper deposition in the Volcanic-Hosted El Soldado
Manto-Type Copper deposit (Wilson, 2003). “V”s in section represent rhyodacite. ................................34
Figure 20: Schematic illustration of stratum and fault control on copper deposition in Volcanic Redbed
Copper Deposits (Lefebure, 1998). .............................................................................................................35
Figure 21: Map showing separation of native copper and sulphide copper deposition areas in the
Basaltic Copper deposits of the Keweenaw Peninasula (Kantor, 2011). ....................................................35
Figure 22: Nickel ppm in soils at Golcuk (historically available data). .......................................................37
Figure 23: Nickel ppm in soils at Golcuk, including Pasinex determinations.............................................37
Figure 24: Strontium ppm in soils at Golcuk. .............................................................................................38
Figure 25: Zirconium ppm in soils at Golcuk. .............................................................................................38
Figure 26: Manganese ppm in soils at Golcuk. ..........................................................................................39
Figure 27: Copper ppm in soils at Golcuk. .................................................................................................39
Figure 28: Map showing extensions to Eurasia geological mapping carried out by Pasinex (cf: Figure 16).
....................................................................................................................................................................41
Figure 29: Location of rock-chip sampling lines at the Main Golcuk soil anomaly....................................43
Figure 30: Copper results for outcrop sampling at the Golcuk Main North soil Cu anomaly....................44
Figure 31: Copper results for outcrop sampling at the Golcuk Main West soil Cu anomaly.....................45
Figure 32: Location (center of blue circle) of 2012 Pasinex adit................................................................46
Figure 33: Photograph of 2012 adit portal. ...............................................................................................47
Figure 34: Plan view of pre-2012 drilling down-hole copper profiles at Golcuk. ......................................48
Figure 35: Horizontal view from the north-west of pre-2012 drilling down-hole copper profiles at
Golcuk. ........................................................................................................................................................48
Figure 36: Down-hole copper profiles on the N4450180 West-to-East section through the main
mineralised zone at Golcuk.........................................................................................................................49
Figure 37: Down-hole copper profiles on the E400780 South-to North section through the main
mineralised zone at Golcuk.........................................................................................................................50
Figure 38: Plan view of boreholes PAS01, PAS02 and pre-2012 drilling down-hole copper profiles at
Golcuk. ........................................................................................................................................................51
Figure 39: Pasinex drilling operations at Golcuk........................................................................................53
Figure 40: Geochemical, magnetic susceptibility and mineralogical profiles for Borehole PAS01. ..........54
Figure 41: Geochemical, magnetic susceptibility and mineralogical profiles for Borehole PAS02. ..........55
Figure 42: Pasinex core storage and sample preparation facility at Golcuk..............................................56
Figure 43: Mineralised basaltic breccia from near the new Golcuk adit. ..................................................57
Figure 44: Photograph showing ancient slag pile and Borehole GS-5 collar location. ..............................59
Figure 45: Titaniferous magnetite replacement by hematite and sphene at Golcuk................................60
Figure 46: USGS Seismic Hazard Map of Turkey. .......................................................................................72
Figure 47: Earthquake epicentres in north-central Turkey (by year).........................................................73
Figure 48: Earthquake epicentres in north-central Turkey (by magnitude). .............................................73
Figure 49: Eurasia drill collar locations (yellow) and GPS stations visited (red) by the author plotted on a
georeferenced Microsoft Bing image of Golcuk drilling area. ....................................................................74
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 5 of 76
List of Tables
Table 1: Licence details of the Golcuk Exploration Licence. ......................................................................14
Table 2: Golcuk Exploration Licence corner points in UTM zone 37 co-ordinates. ...................................14
Table 3: Licence details of the Golcuk operation licence...........................................................................15
Table 4: Golcuk Operation Licence corner points UTM zone 37 co-ordinates ..........................................15
Table 5: Significant results from Etibank and Rio Tinto drilling. ................................................................18
Table 6: Significant results from Turmenka drilling. ..................................................................................21
Table 7: Description of rock-chip sampling lines at the Main Golcuk soil anomaly. .................................42
Table 8: Location and technical details for Pasinex boreholes PAS01 and PAS02.....................................51
Table 9: Listing of intervals of borehole PAS02 analysed by different laboratories..................................52
Table 10: Borehole assay verification calculations. ...................................................................................58
Table 11: Recommended budget for the next phase of exploration at Golcuk. ........................................63
Table 12: Results of field checking of Golcuk borehole collar coordinates. ..............................................75
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 6 of 76
1 SUMMARY
This technical review of the Golcuk Property for Pasinex Resources Limited (Pasinex) was prepared in
compliance with Canadian National Instrument 43-101 and its Form 43-101F1 format for Technical
Reports (June 2011 version).
The review summarises the exploration data available from various historic assessments of the Golcuk
licence area (the Property) in Turkey, as well as exploration work done by Pasinex from September 2012
to February 2013. In places the author has expressed his opinion with regard to information gained
during a visit to the property in October 2012.
In Turkey all useful mineral substances occurring under the surface are the property of the State. An
exploration licence is valid for 10 years and is renewable six times for the same period. It provides the
company with the right to explore for and extract base and precious metals within the property. The
licence is exclusive and transferable.
The Golcuk property, covering 40 square kilometres, lies in the Sivas Province of north central Turkey.
The property is held under Licence number 61567 issued by General Directorate of Mining Affairs on the
31st July 2008 for the exploration of base and precious metals. This exploration licence was originally
granted to Eurasia Madencilik Ltd. Şti. (Eurasia) on 25 December, 2003, and was assigned to Pasinex
Arama ve Madencilik A.S. by Eurasia on 25 July, 2012. Eurasia is the Turkish subsidiary of Eurasian
Minerals Inc., and Pasinex Arama ve Madencilik A. S. is the Turkish subsidiary of Pasinex.
Within seven years of receipt of an exploration licence, the licence holder (or transferee of the licence)
must apply for an Operating Licence, and commence with mining on the property. Eurasia applied for
an operating licence in November, 2007, and the licence to mine 9000 tons per year at Golcuk was
granted on July 16, 2008. However, by the date of transfer of the exploration and operation licences to
Pasinex, Eurasia had not initiated their planned mining operations on the property.
In order to avoid cancellation of the licence, Pasinex established from the Mining Directorate that
production by Pasinex before September 30, 2012, (later extended) of a minimum of 90 tons from the
planned and permitted underground mining area, and a further 810 tons by the 31st of July, 2013, would
be sufficient for continued validity of the Golcuk licences to 31 July, 2014.
Pasinex contracted Mitto Madencilik to undertake the 90 tons of production, which was successfully
completed. The production was accepted as satisfactory with respect to the first obligation mentioned
above by the Mining Directorate in a report finalised on October 15, 2012.
While the Mining Law is not clear in this regard, according to assurances given to the author by the CEO
of Pasinex, it is necessary for Pasinex to complete, annually, only 10% of the 9000 tons of annual
production specified in the Eurasia’s original production plan in order to maintain its exploration and
production licences during future years. This amounts to 900 tons of production per year. It is Pasinex’s
intention to meet its obligations in this regard.
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 7 of 76
Pasinex’ agreement with Eurasia requires:
1. Expenditure of US$200 000 by the first anniversary of the completion date, with the money to be
spent on fulfilling the outstanding Mining Obligations and a maximum of 750m of core drilling.
2. Expenditure of US250 000 by the second anniversary of the completion date and
3. Expenditure of US250 000 by the fourth anniversary of the completion date.
4. Reports on work done have to be submitted every six months to Eurasia.
A royalty of 2.9% NSR is payable to Eurasia. This may be reduced to a 2.0% NSR by a payment before
February 2019 of US$1 000 000.
The author believes that the agreements amongst Eurasia, Pasinex and the Government, together with
the exploration carried out and planned by Pasinex, comply with the rules and regulations regarding
mining and exploration in Turkey. However, the agreements and permits have not been legally tested
(in court) as it is believed that such testing is beyond the scope of this technical report.
The property is some 120 kilometres east-northeast of the provincial capital of Sivas and is accessed by a
secondary well maintained gravel road from the main tarred E88/D200 highway between Sivas and
Erzurum. It has the climate of the Central Anatolian Region with warm to hot dry summers and cold
snowy winters.
There are no perennial rivers on the property. The property is partly covered with boreal wet forest,
conifers and birch and is dominantly pastoral. The soil in the area is thin (generally <10cm) soil with
numerous bedrock fragments. There is a high probability of an earthquake of magnitude >7 occurring in
a 50 year cycle and low landslide hazard. Water for mining would be available from underground
sources. There is no electricity on site but a 154Kva line of the national grid crosses the property. A gas
pipeline is proposed to pass within 32km of the licence indicating that additions to the infrastructure of
the area are ongoing.
The exploration focus is on copper and silver mineralisation hosted in mafic volcanics. Copper
mineralisation, mainly as malachite and chrysocolla derived from bornite and chalcocite, is present in
outcrops over at least two kilometres of strike. Previously work had been carried out by Maden Tetkik ve
Arama (MTA) and Etibank Arama ve Madencilik (Etibank), both Turkish para-statal organisations, Rio
Tinto Turkey (Rio Tinto), Eurasia and Turmenka Madencilik Sanayi ve Ticaret (Turmenka).
In the 1970’s Etibank carried out rock chip and geochemical soil sampling and in 1973 drilled a total of
1113m in six vertical and one inclined diamond core holes around the site of old workings. The best
intersection was in borehole GS2 with 1.36%Cu over 34.0m from 85m. The geological logs record
andesitic and basaltic volcanics, volcanic and diabase breccia with chalcopyrite, bornite and malachite
mineralisation.
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 8 of 76
In the 1990’s Rio Tinto carried out some exploration and drilled one hole, GD1, inclined to the west at
800 and drilled to a depth of 198.2m in the same area as the Etibank boreholes. The borehole returned
an interval of 17m grading 1.17% Cu and 11.7g/t Ag.
In 2008, Turmenka drilled a total of 1863m in 13 core holes, all within the small area previously
investigated by Etibank. Assay from eight holes yielded intersections of >1% Cu and >11g/t Ag including
an intercept in borehole TGSJ-18 from 87.0m of 13.5m grading 2.6% Cu and 41.9g/t Ag.
In 2011 a total of 2856 geochemical soil samples were collected by Eurasia on a line spacing of 50m and
sample spacing of 50m, covering some 7km2 of the 40km2 licence. The results using a >150ppm Cu
contour showed three main anomalous areas, two of which have not yet been drilled.
Eurasia also carried out geological mapping of part of the soil sampled area at a scale of 1:5000, and a
ground magnetic survey was carried out over the central part of the soil-sampled area by Wright
Geophysics for Eurasia in July 2009. It was concluded that the interpretation of the magnetic and the
mapped geology did not agree and further soil sampling and geological mapping was recommended.
According to the MTA 1:100,000 geological map (H39-Giresun), mineralisation at Golcuk occurs in
Eocene-aged volcaniclastic rocks. These correspond with Eocene volcano-sedimentary sequences
identified over a broad area in Turkey, and associated with a regional extensional regime bracketed in
time by two compressional regimes. Modern literature on this volcano-sedimentary sequence names it
as the Mucur Formation.
Tectonically, it should be noted that the property lies on the Anatolian block some 2-3km south of the
North Anatolian Fault.
Also of note some 2.5km to the southeast of the property is the large (225 km2) Kosedag pluton. This
Eocene multi-sourced syenite and quartz syenite was intruded into the basin hosting the Mucur
Formation, and may have played a role in the genesis of mineralisation at Golcuk.
The main deposit type being explored for on the Golcuk property is copper with ancillary silver in basic
to intermediate mafic volcanics and associated sediments, which corresponds to the United States
Geological Survey (USGS) Deposit Model 23, “Basaltic Copper”.
Exploration work carried out by Pasinex at Golcuk up until 28 February, 2013, excluding drilling, falls into
the following categories:
(1) Re-analysis of soil samples
(2) Geological mapping
(3) Outcrop sampling
(4) Adit excavation
Less than half of the soil samples collected at Golcuk by the previous owner were analysed for elements
other than copper. However, when the data available for these elements was plotted on a map,
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 9 of 76
patterns were apparent which might assist with better understanding the geology of the prospect.
Pasinex therefore decided to recover from the previous owner, for the purpose of re-analysis for missing
elements, those soil samples which were still in a suitable condition for analysis, and analysed them.
The data may prove useful in discriminating different lithological units encountered during drilling on
the property.
Detailed geological mapping of the Golcuk drilling area produced by Eurasia has been extended by
Pasinex to cover both the Golcuk North and Golcuk West soil geochemical anomalies.
In November and December 2012 Pasinex carried out surface outcrop sampling in the Main Golcuk
target area which broadly confirmed outcrop sampling results obtained by earlier workers in the area.
In early October, 2012, Pasinex commissioned the mining of a 12 meter-long 2m by 2m horizontal adit
located at North 4450185 and East 400765 in order to fulfill the minimum Golcuk licence mining
obligations for 2012/13. No economic mineralisation was encountered in this mining.
In December, 2012, boreholes PAS-01 and PAS-02 were sited to test for mineralisation plunging to the
north-east of existing intersections of mineralisation.
Assay results for PAS-01 indicated two mineralised intersections at a 0.5% Cu cut-off: 3.50m from
174.70m grading 0.54% Cu and 9.70m from 203.70m grading 2.97%Cu, including 6.70m grading 3.7%Cu.
Borehole PAS-02 returned no significant intersections of mineralisation.
The author believes that the sample preparation, analysis and security measures implemented by
Pasinex on the Golcuk project were adequate for the metals of interest, grades expected and
encountered, and level of maturity of the project.
No information is available with respect to the sample preparation and security procedures adopted by
workers on the property prior to Pasinex. However the following factors give the author comfort that
the results reported for historical drilling accurately represent the Golcuk property:
(I) The availability for inspection and sampling of half-core for all the Turmenka drill core;
(II) The availability of all assay certificates from an internationally-reputable laboratory (ALSChemex) for samples analysed from Turmenka drilling;
(III) Verification assays undertaken by the author and reported in Section 12 below.
The geology of the licence area was inspected during some foot traverses on the 29th and 30th October
2012. The geology was verified at selected sites during these traverses.
Quarter core was sampled by the author from borehole TGSJ-18 between 84.0m and 106.0m. Assay
results confirm the previous Eurasia values.
During the field visit an apparent error was noted in the location of some of the drill collars, which does
not compromise the geological investigation to date, and which Pasinex have corrected.
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 10 of 76
A metallurgical report prepared for Rio Tinto on samples from their single borehole at Golcuk indicated
that, “the grain size and mode of occurrence of the copper sulphide minerals is highly variable, but in
general, it should prove possible to produce an acceptable grade of concentrate from the material at a
reasonably fine grind size”.
While the geology at Golcuk is sufficiently well understood to be able to apply an exploration model
with considerable economic potential (the “Basaltic Copper Model”) to guide exploration, most of the
property has not been subjected to geochemical or geophysical surveying, or mapping at better than a
scale of 1:100,000. This provides the property with considerable potential for discovery of new centres
of mineralisation not contiguous with the existing known mineralisation.
The two copper-in-soil geochemical anomalies that are not contiguous with the central, drilled, anomaly
at Golcuk are examples of these, and both are certainly drilling targets.
As the structural controls on the known mineralisation have not yet been worked out, and the bodies of
mineralisation identified to date are relatively narrow, the known mineralisation remains open in a
number of directions.
Mineral resource and reserve estimates made previously by Eurasia to comply with the Golcuk
property’s licencing conditions were considered inappropriate for the style of mineralisation and the
amount of drilling completed at Golcuk. Currently the Golcuk property contains no resources or
reserves compliant with the National Instrument 43-101 standard.
In the light of Pasinex’s intention to change to open pit mining to maintain the Golcuk licence,
consideration should be given to applying for new mining permits located over cropping out
mineralisation in order to maximise the likelihood of producing saleable material.
Pasinex’s Golcuk licence clearly covers an under-explored area with considerable potential for the
discovery of economic deposits of copper. It has clearly not yet been subjected to 20th or 21st century
best-practice exploration methods, and therefore constitutes an exploration property of considerable
merit.
A budget of US$800,000 is recommended for the next phase of exploration on the Golcuk property,
divided between an airborne magnetics survey, soil sampling, geological mapping and drilling.
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 11 of 76
2 INTRODUCTION
This technical report has been commissioned by, and undertaken on behalf of, Pasinex Resources
Limited (the Company).
The report has been prepared in compliance with Canadian National Instrument 43-101 (June 2011
version). It contains a review and evaluation of the historic data upon which the company decided to
acquire the property, as well as of exploration carried out by the Company from September 2012 to
February 2013.
The Golcuk licence area (the property) lies in the Eastern Pontides Metallogenic belt of northeast Turkey
(Figure 1). It has been explored previously by MTV, Etibank, the Turkish State mining enterprise, Rio
Tinto, Eurasia and Turmenka. These parties produced a limited number of documents used by the
author, most of which are listed in Section 20 of this report. Section 20 also contains a list of other
historic documents for some of which the existence still has to be verified and have not yet been
studied.
Figure 1: Location map
The author visited Turkey from 26 October to 1 November 2012, and the property on the 29th and 30th
of October. His supporting observations are recorded in various sections of this report.
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12 July, 2013 NI 43-101 Technical Report 12 of 76
3 RELIANCE ON OTHER EXPERTS
This report is based on a review of paper and digital data compiled by the company. The bulk of the data
used by the company was extracted from reports and data files prepared by MTA, Etibank, Rio Tinto,
Turmenka and Eurasia.
Data extracted from these files have varying supporting documentation regarding assay methods and
quality assurance and control. With the exception of drill core sampled by the author as discussed in
Section 12,these data have not been validated beyond confirmation by the author of their existence in
the relevant reports, and judgement by the author after his visit to the property that they accord with
the geological context of the area and with logical geological reasoning. Further validation is considered
beyond the scope of this report. Such validation will be part of the first phase of exploration.
The five companies are, however well-known for having produced reports relating to the geology of the
region and they are expected to have used at least ‘acceptable practices’ available at the time of the
work. The apparent errors and omissions noted in their documentation, however, mean that all the
reports on the property must be critically reviewed. In the above context, the author has relied on those
reports as well as observations from a personal visit to the property and the core storage facility.
A number of the transcription errors found in the historic reports examined have been rectified.
However no fundamental scientific weaknesses have been observed, although the geology of the
property is far from being fully understood. The true nature of any body of mineralization is never
known until the last tonne of ore has been mined out, by which time exploration has long since ceased.
Exploration information relies on interpretation of a relatively small statistical sample of the deposit
being studied; thus a variety of interpretations may be possible from the fragmentary data available.
Investors should note that the statements and diagrams in this report are based on the best information
available at the time, which may not necessarily be absolutely correct. Such statements and diagrams
are subject to change or refinement as new exploration makes new data available, or new research
alters prevailing geological concepts.
Appraisal of the information mentioned above forms the basis for this report.
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 13 of 76
4 PROPERTY DESCRIPTION AND LOCATION
In Turkey all useful mineral substances occurring under the surface are the property of the State.
Mining activities in Turkey are regulated by the Mining Law No 3213 dated 15 June 1985 (amended in
2005 by Law 5177 and 2010 by Law 5995) (the Mining Law), together with the Implementation
Regulation on Mining Activities dated 6 November 2010 (amended from time to time) (the Mining
Regulation) and the Mining Activities Permit Regulation dated 21 June 2005 (amended from time to
time) (Norton, 2013).
The Ministry of Energy and Natural Resources (MENR) is the ministry responsible for overseeing the
mining industry. The General Directorate of Mining Affairs (the Mining Directorate), a department of
MENR, grants licences and regulates mining activity.
The Mining Law requires mining licences to be given according to certain mineral groups, and the
licensing procedure for each class is slightly different. The Company’s licence is for Operation of Group
Four metals, which pertains to base and precious metals.
There are three types of licence granted for prospecting and operating mines under Turkish law: an
exploration licence (enables holder to carry out exploration activities in a specific area), an operating
licence (enables holder to carry out operational activities), and an operating permit (enables holder to
operate a mine) (Norton, 2013).
An exploration licence is valid for 10 years and is renewable six times for the same period. It provides
the company with the right to explore for and extract base and precious metals within the property.
The right is exclusive and transferable.
Pasinex’ Golcuk Exploration Licence No 61567 (Appendix A) covers 40 square kilometres in the Sivas
Province of Central Turkey. The detailed location of the licence is shown in Figure 2 (red polygon).
Exploration Licence details and co-ordinates (UTM northern Zone 37 coordinate system; European
Datum 1950) are listed in Tables 1 and 2 below.
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 14 of 76
Figure 2: Location map of the Golcuk Exploration Licence.
Licence No. Erisim No. Hectares Status
61567 2486921 4000.01 Exploration Licence
Table 1: Licence details of the Golcuk Exploration Licence.
Name East North
1 397500 4452000
2 405500 4452000
3 405500 4447000
4 397500 4447000
Table 2: Golcuk Exploration Licence corner points in UTM zone 37 co-ordinates.
This exploration licence was originally granted to Eurasia on 25 December, 2003, and was assigned to
Pasinex Arama ve Madencilik A.S. by Eurasia on 25 July, 2012 (Dincer, Appendix B).
Within seven years of receipt of an exploration licence, the licence holder (or transferee of the licence)
must apply for an Operating Licence, and commence with mining on the property.
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 15 of 76
In compliance with the law, Eurasia applied for an operating licence in November, 2007, and the licence
was granted on July 16, 2008 (Mitto, Appendix C). This operating licence was also assigned to Pasinex
(Appendix D).
The location of the Golcuk Operating Licence is shown in Figure 3. Operating Licence details and coordinates are listed in Tables 3 and 4 below.
Figure 3: Location plan of the Golcuk Operating Licence and Forestry Permits within the Golcuk Exploration
Licence.
Licence No. Erisim No. Hectares Status
61567 2486921 156.5 Operating Licence
Table 3: Licence details of the Golcuk operation licence.
Name East North
1 398800 4450500
2 400800 4450500
3 400800 4451500
4 401250 4451500
5 401250 4450000
6 398750 4450100
Table 4: Golcuk Operation Licence corner points UTM zone 37 co-ordinates
Holders of operating licences must apply to the relevant governmental authorities or the Mining
Directorate for the necessary permits. An operating permit will only be granted if the operating licensee
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12 July, 2013 NI 43-101 Technical Report 16 of 76
obtains a positive environmental impact assessment (EIA) certificate (or a certificate stating that an EIA
is not required), land ownership permits, workplace opening and operation licences and other special
permits within three years from the effective date of the operating licence. Failure to do so will result in
cancellation of the licence (Norton, 2013).
Consequently, also in compliance with the law, Eurasia applied for, and was granted, the necessary EIA
exemption and operating (forestry) permits (Mitto, Appendix C). However, by the date of transfer of the
exploration and operation licences to Pasinex, Eurasia had not initiated their planned mining operations
on the property.
The four forestry permits (Appendix E) covering 10908.81m2 are current and cover a production area, a
road area, an ore dump area and a waste dump area. The permits also allow for drilling. These were
therefore used for the Pasinex two-hole drill program described in Section 10.
In order to avoid cancellation of the licence, Pasinex established from the Mining Directorate that
production by Pasinex before September 30, 2012 (later extended), of a minimum of 90 tons from the
planned and permitted underground mining area, and a further 810 tons by the 31st of July, 2013, would
be sufficient for continued validity of the Golcuk licences to 31 July, 2014
Pasinex contracted Mitto Madencilik to undertake the initial 90 tons of production, which was
successfully completed. The production was accepted as satisfactory for licence extension to 31 July,
2013 by the Mining Directorate in a report finalised on October 15, 2012 (Dincer, Appendix B).
It is necessary for Pasinex to complete its compulsory production for 2013 and 2014 (as laid out in the
Eurasia’s original production plan (Appendix F)) in order to maintain its exploration and production
licences during these years.
While the Mining Law is not clear in this regard, according to assurances given to the author by the CEO
of Pasinex, it is necessary for Pasinex to complete, annually, only 10% of the 9000 tons of annual
production specified in the Eurasia’s original production plan (Appendix F) in order to maintain its
exploration and production licences during future years. This amounts to 900 tons of production per
year. It is Pasinex’s intention to meet its obligations in this regard
In order to provide for greater flexibility in meeting its mining commitments, in 2012 Pasinex applied to
the Mining Directorate for permission to conduct open pit instead of underground mining at Golcuk to
meet its production commitments. This request was supported by the Mining Directorate, but the
additional permitting required to allow open pit mining to begin had not been completed by Pasinex by
February 28, 2013 (Dincer, Appendix B).
Pasinex’ agreement with Eurasia requires:
1. Expenditure of US$200 000 by the first anniversary of the completion date, with the money to be
spent on fulfilling the outstanding Mining Obligations and a maximum of 750m of core drilling.
2. Expenditure of US250 000 by the second anniversary of the completion date and
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3. Expenditure of US250 000 by the fourth anniversary of the completion date.
4. Reports on work done have to be submitted every six months to Eurasia.
5. A royalty of 2.9% NSR is payable to Eurasia and this may be reduced to a 2.0% royalty by payment
of US$1 000 000 before February 2019.
The author believes that the agreements amongst Eurasia, Pasinex and the Government, together with
the exploration carried out and planned by Pasinex, comply with the rules and regulations regarding
mining and exploration in Turkey. However, the agreements and permits have not been legally tested in
court as it is believed that such testing is beyond the scope of this technical report.
The Turkish Government mining department, at the end of October 2012, put a halt on granting any
new drilling permits for the next six months. This did not affect Pasinex’s drill program.
5 ACCESS, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND
PHYSIOLOGY
The property is some 120 kilometres east-northeast of the Provincial capital of Sivas and is accessed by a
secondary well maintained gravel road from the main tarred E88/D200 highway between Sivas and
Erzurum. The property is crossed by several graded and ungraded tracks. Access to the property is
limited in winter, November to March, due to snow cover, although Pasinex was able to carry out its
drilling during December and January, reportedly the months of highest snowfall.
The small pastoral settlement of Golcuk Y lies within the property some 13km south of the town of
Koyulhisar. It is occupied only from the spring to the fall.
The property has the climate of the Central Anatolian Region with warm to hot dry summers and cold
snowy winters. (Ref. Wikipedia 2013). There is no wet season, and the mean annual rainfall in the
region is less than 440mm. The summer season is from June to September with temperatures reaching
250C, average 150C. The winter season is from November to February with an average temperature of
-2 0C. The mean altitude of the property is about 1700m ranging from 1978m in the south to below
1400m in the north with numerous small steep (+200slope) sided valleys.
There are no perennial rivers on the property. The property is partly covered with boreal wet forest,
conifers and birch and is dominantly pastoral. The soil in the area is thin (generally <10cm) soil with
numerous bedrock fragments. There is a high probability of an earthquake of magnitude >7 occurring in
a 50 year cycle and low landslide hazard (Appendix E). Water for mining would be available from
underground sources. There is no electricity on site but a 154Kva line of the national grid crosses the
property. A gas pipeline is proposed to pass within 32km of the licence indicating that additions to the
infrastructure of the area are ongoing.
The local economy is agrarian-based and is concentrated in the main valleys. The work force would be
adequate for small scale mining purposes. The mining law makes provision for acquiring surface rights
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for disposal of waste and tailings and there appear to be no environmental or other reasons why such
applications would not be granted.
6 HISTORY
MTA, the Turkish government’s General Directorate of Mineral Research and Exploration, conducted
stream sediment sampling in the area during the 1970s and 1980s as a component of a country-wide,
regional scale mineral assessment program, and discovered elevated levels of copper on the property.
Subsequently, at least 21 copper occurrences have been identified within the licence, mainly in the
eastern part of the property. These include shallow workings attributed to the Romans and to 18th and
19th century miners. In recent times, the property has been explored by MTA, Etibank, Rio Tinto,
Turmenka and Eurasia. The only recent mining activity on the licence is the excavation of an adit
completed by Pasinex in October 2012 in compliance with licence requirements.
In the 1970’s Etibank carried out rock chip and geochemical soil sampling and in 1973 drilled a total of
1113m in six vertical and one inclined (GS4) diamond core holes around the sites of the largest of the old
workings. The best intersection was in borehole GS2 with 1.36%Cu over 34.0m from 85m. Core recovery
was quite low averaging some 68% for all the holes. No assays were performed on the core of GS5 or
GS6 although bornite and chalcopyrite were identified over several metres in the cores. Etibank did not
assay for silver. A summary of the assay results is given below in Table 5.
Hole_ID From m To m Length m Ave_Cu% Comment
GS-1 58.0 77.0 19.0 0.30
GS-1 82.0 112.5 30.5 1.22
GS-2 85.0 119.0 34.0 1.36
GS-3 89.0 99.0 10.0 0.66
GS-4 78.5 92.0 13.5 1.46
GS-4 92.0 104.0 12.0 0.25
GS-7 59.5 67.5 8.0 0.35
GD-1 80.0 97.5 17.5 1.17 Rio Tinto
Table 5: Significant results from Etibank and Rio Tinto drilling.
The geological logs record andesitic and basaltic volcanics, volcanic and diabase breccia with
chalcopyrite, bornite and malachite mineralisation. The log of GS2 is included as Figure 4. No core or
individual sample assay values are available for examination for any of the Etibank holes. The assay
value table appears to be consolidated data. Examination of the logs and summary assay values revealed
some inconsistencies due to transcription errors which have now been resolved.
In the 1990’s RioTinto carried out some exploration and drilled one hole, GD1, inclined to the west at
800 and drilled to a depth of 198.2m in the same area as the Etibank boreholes. The borehole returned
an interval of 17m grading 1.17% Cu and 11.7g/t Ag. Detailed mineralogy and petrology were carried out
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on selected rock and core samples. The various rocks are described as altered basalt breccia with minor
copper mineralisation with basaltic fragments in a basaltic groundmass, auto-brecciated and hornblende
andesite with kaolinised feldspars.
Figure 4: Graphic log of Etibank Borehole GS-2.
Eurasia obtained the property at an auction. They collected and carried out analysis on 15 rock chip
samples from outcropping copper mineralisation that returned a best value of 4.28% Cu and 38.1g/t Ag.
Eurasia leased the property to Turmenka in 2007.
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Figure 5: Graphic log of Turmenka Borehole TGSJ-18.
Turmenka carried out a small amount of geochemical soil sampling. The data has not yet been
recovered and has been superseded by Eurasia soil sampling conducted in 2011, as discussed below.
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Turmenka drilled a total of 1863m in 13 core holes, all within the small area previously investigated by
Etibank. Assay from eight holes yielded intersections of >1% Cu and >11g/t Ag including an intercept in
borehole TGSJ-18 from 87.0m of 13.5m grading 2.6% Cu and 41.9g/t Ag (Figure 5 and Table 6). Figure 6
shows locations of all Turmenka and Etibank boreholes, as well as significant intersections in each hole.
Table 6 shows all intersection recorded by Turmenka and Eurasia who both used a sample length of
1.5m. No reports of core recoveries for the Turmenka boreholes have been seen. All intersections are
given in drilled thickness. The few estimates of true thickness rely on information from interpreted
sections and may not be reliable.
Hole_ID From m To m Interval m Cu % grade Ag g/t grade
TGSJ-8 21.0 21.5 1.5 0.94 13.0
TGSJ-8 72.0 82.5 10.5 1.39 16.1
TGJS-8 87.0 100.5 13.5 1.60 20.9
TGSJ-9 36.0 37.5 1.5 0.79 14.5
TGJS-9 91.5 100.5 9.0 1.18 14.0
TGSJ-10 23.0 26.0 3.0 1.52 11.6
TGSJ-10 97.5 105.0 7.5 2.12 22.6
TGSJ-11 79.5 85.5 6.0 1.80 16.3
TGSJ-12 No significant values
TGSJ-13 108.0 111.0 3.0 0.37 2.4
TGSJ-14 No significant values
TGSJ-15 No significant values
TGSJ-16 82.5 84.0 1.5 1.29 17.2
TGSJ-17 120.0 124.5 4.5 2.15 30.6
TGSJ-18 12.0 21.0 9.0 2.04 19.0
TGSJ-18 63.0 64.5 1.5 1.72 15.8
TGSJ-18 87.0 100.5 13.5 2.57 41.9
TGSJ-19 57.0 58.5 1.5 0.99 9.5
TGSJ-19 121.5 133.5 12.0 1.93 25.1
TGSJ-20 No significant values
Table 6: Significant results from Turmenka drilling.
Cross sections constructed by Eurasia in 2011 propose continuity for 100m down-dip to the north west
of several outcropping copper-silver mineralised areas. All the drilling has been carried out within a very
small area of some 200m by 180m possibly based on the assumption that the mineralisation was
confined to steeply north-north-westerly dipping structures.
In 2009 Eurasia regained complete control of the property from Turmenka and carried out further
exploration. Using a hand-held XRF instrument they relogged all the Turmenka drill core and identified
mineralisation in five boreholes where it had not been recorded previously. Twenty four samples were
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collected and sent for analysis to ALS Chemex in Turkey. Two significant new intersections were
revealed, 10.5m grading 1.39%Cu in TGSJ 8 and 9.0m grading 2.04%Cu in TGSJ 18.
A map showing the locations and significant grade intersections of all historical drill holes at Golcuk is
presented in Figure 5.
Figure 6: Map produced by Eurasia summarising significant results of historical drilling at Golcuk, with Pasinex
observations in two grey boxes. Note northeast strike of surface mineralisation (orange polygons).
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In 2011 a total of 2856 geochemical soil samples were collected by Eurasia on a line spacing of 50m and
sample spacing of 50m, covering some 7km2 of the 40km2 licence. The samples were analysed using a
hand-held XRF instrument. The results using a >150ppm Cu contour showed three main anomalous
areas (Figure 7). These are each about 12 ha in extent and on an east to west strike of over two
kilometres; the central anomaly overlies the main drilled area. In the south a much larger lower grade
anomalous area is outlined and seems to be underlain by a different rock type judging by the colour
change seen on the satellite imagery and Eurasia’s geological mapping.
Figure 7: Eurasia soil sampling results in ppm for copper at Golcuk.
Eurasia carried out geological mapping of part of the soil sampled area at a scale of 1:5000. Their
earliest map (coloured areas of Figure 8) was aligned with public domain nomenclature for geological
units in the area. Subsequent more detailed geological mapping, which has been extended by Pasinex,
is shown only in superimposed outline in Figure 8. A coloured version of this map, with legend, is
presented in Figure 16.
The southern part of the area mapped is shown to be underlain by the Dogansar Formation of claystonesandstone-conglomerate with limestone. Underlying most of the central mapped area is the Haydaroglu
Formation divided into andesitic and basaltic lava flows, agglomerates and tuffites. Small areas of
Akincilar Formation of claystone-sandstone and conglomerate were mapped in the north west of the
sampled area.
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Most of the mineralisation is shown to occur in the andesitic rocks of the Haydaroglu Formation,
although drill logs reportedly intersected mainly basalts. No structural information is shown on the map
apart from some bedding plane dips and strikes in the Akincilar Formation sediments.
Figure 8: First Eurasia geology map of the Golcuk prospect (light colours) overlain on the 1:100,000 MTA Map
H39 Giresun, with later Eurasia mapping overlay (see Figure 16).
Etibank, Turmenka and Eurasia all produced geological sections with different interpretations using the
drill information. Eurasia also proposed 3D model of the drilled area as shown in Figure 9. Current reevaluation of the drill data and cross-sections using 3D modelling indicate that the series of steep northwest dipping mineralised zones proposed by Eurasia is not the most probable scenario. Eurasia’s
systematic plotting error (see Appendix F) and the use of more than one cut-off mean that the values
plotted on Figure 6 are incorrect but not by significant amounts. Correction of this work will form part of
the first phase of Pasinex’s exploration.
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Figure 9: One 3D interpretation of Golcuk mineralisation by Eurasia, not supported by this report.
A ground magnetic survey was carried out over the central part of the soil-sampled area by Wright
Geophysics for Eurasia in July 2009 (Figure 10).
Figure 10: Golcuk total field magnetic results with interpretation.
The survey with east to west lines spaced at 100m and with sample points at 30m intervals had the
object of mapping structures, lithologies and alteration. The interpreted geology was a non-magnetic
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basal sequence of limestone and volcanics. The basal rocks are overlain by a sequence of moderately
magnetic basalts and andesites with intercalated sediments cut by a series of north-south striking faults.
In the report it was concluded that the interpretation of the magnetic and the mapped geology do not
agree and further soil sampling and geological mapping is recommended together with field checking of
the magnetic data. Pasinex believes that the interpretation did not take into account the alteration in
which the magnetite of the basalts was oxidised to non-magnetic haematite seen in the core and
described in the Rio Tinto reports (Reynolds, 1995).
Under a US Government aid scheme geophysicists were given practical training in conducting a
Resistivity IP survey. The work was inside the Golcuk licence (Figure 11). A total of twenty one kilometre
long east-west lines were proposed for the survey with a 50m station interval. Only three roughly NNE
to SSW one kilometre lines were surveyed. The lines were not straight.
Figure 11: Training IP lines (green) surveyed by the USGS over the main Golcuk mineralisation.
Pasinex took over operatorship of the licence after agreement on terms for an option agreement in July
2012, which agreement was finalised in 2013.
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7 GEOLOGICAL SETTING AND MINERALISATION
According to the MTA 1:100,000 geological map (H39-Giresun), mineralisation at Golcuk occurs in
Eocene-aged volcaniclastic rocks (Figures 12 and 13). These correspond with Eocene volcanosedimentary sequences identified over a broad area in Turkey, and associated with a regional
extensional regime bracketed in time by two compressional regimes (Figure 14; Boztug, 2008). Modern
literature on this volcano-sedimentary sequence names it as the Mucur Formation (Geneli, 2011),
although it is not named as such on the H39-Giresun map, which is not accompanied by any explanatory
text.
Figure 12: Regional geology map of the Golcuk Property (from MTA Map H39 Giresun). The legend for this map
is presented in the following figure.
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The sequence is pre-dated by the final collision between the southern Tauride-Anatolide platform and
northern Eurasian plate in Late Palaeocene-Early Eocene times. It is post-dated by Oligocene to Late
Miocene shortening resulting from convergence between Eurasia and Africa-Arabia. These volcanosedimentary sequences occur primarily in E-W and NE-SW-orientated basins (Figure 14). Continued
convergence from the Late Miocene initiated the dextral North Anatolian Fault Zone, setting off the
westward escape of the Anatolian block (Figure 14).
Figure 13: Legend for regional geology map of the Golcuk Property in previous figure.
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Figure 14: Location map and regional geological-geographical setting of the eastern Pontide and central Anatolian
granitoids and surrounding region (Boztug, 2008). The upper inset shows the simplified regional tectonic setting of Turkey
and adjacent areas. [NAFZ– North Anatolian Fault Zone; IAESZ– Izmir-Ankara-Erzincan Suture Zone; EAFZ– East Anatolian
Fault Zone; BSZ– Bitlis Suture Zone; CACC– Central Anatolian Crystalline Complex; DSFZ– Dead Sea Fault Zone]
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The most comprehensive work on the volcanics of the Mucur Formation to date is reported in Geneli,
2011: “Petrology of the Eocene Volcanism in Central Anatolia: Implications for the Early Tertiary
Evolution of the Central Anatolian Crystalline Complex”. In this PhD, the author reproduces Goncuoglu’s
1994 generalised section of the sedimentary cover over the Central Anatolian Crystalline Complex
(CACC), which includes the Mucur Formation. This stratigraphic section is presented in Figure 15 below
as the best representation of what may be expected in the Eocene volcaniclastic succession at Golcuk1.
Figure 15: Mucur Formation stratigraphic column according to Goncuoglu (1994).
Geneli’s 2011 description of the Mucur volcanics may be summarised as follows:
1 This stratigraphic section in Figure 15 above erroneously places the Lower Maastrichian in the Paleogene
(Cenozoic Era). It should be shown at the top of the Late Cretaceous (Mesozoic Era). This error does not diminish
the relevance of the rest of the section.
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“They are mainly sub-aqueous lava flows and sub-areal domes which are basic to
intermediate and are classified as basalt, basaltic andesite and rarely alkali basalt and
trachy-andesite. Their trace element geochemistry suggests interaction with (Late
Cretaceous, in the area she studied) granitic host rocks in the course of their ascent, as
well as derivation from a heterogeneous enriched lithospheric mantle source that had
been metasomatized by subduction-related agents such as fluids and/or melts during a
previous geodynamic event. Further, also based on their trace element and isotope
geochemistry, these rocks can be considered as transitional between orogenic and
anorogenic types in the context of Wilson and Lustrino (2007).
A two-stage lithospheric-delamination model is favored to explain the (first-phase acid)
magmatism and (second stage basic) volcanism leading to emplacement of the Eocene
Volcanics, both because of their wide spatial distribution and their distinctive
geochemical properties.
In the field, they are found intercalated with volcano-sedimentary and sedimentary rocks
characterized by different depositional environments, ranging from fluvial to shallow
marine. They are exposed both as massive lava flows and pillow lavas. They are dark
grey and black in color and highly altered. In general, the studied volcanic rocks are
aphanitic and contain amygdales.”
Geological mapping carried out by Eurasia centred on the Golcuk property drilling confirms the presence
of basalts, andesites, volcaniclastics and sediments in the drilled area (Figure 16). The basalts, andesites
and volcanic breccias present in Golcuk drill core, however, appear to be much more altered (and
mineralised) than any of those of the Mucur Formation described in Geneli (2011). This does not mean
that they do not belong to the Mucur Formation. Rather, it emphasises the need, discussed in Sections
9 and 26 below, for more detailed mapping of the rest of the property, with attention being paid to
altered and un-altered rocks, volcanics and sediments, and to how the stratigraphy matches, or does not
match, that of other Eocene basins in Turkey.
Tectonically, it should be noted that the property lies on the Anatolian block some 2-3km south of the
North Anatolian Fault. This block has move westwards along the fault zone some 85km since collision
with the African plate in late Palaeocene-early Eocene times (Figure 17).
Also of note some 2.5km to the southeast of the property is the large (225 km2) Kosedag pluton (Boztug,
2008). This Eocene multi-sourced syenite and quartz syenite was intruded into the basin hosting the
Mucur Formation, and may have played a role in the genesis of mineralisation at Golcuk (Figure 12). The
Kosedag pluton is described as a gabbro in the legend to the regional geology map presented in Figure
13 above.
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Figure 16: Final detailed geological map of the Golcuk drilling area produced by Eurasia, overlain on 1:100,000
MTA Map H39 Giresun shown in Figure 12.
Figure 17: Turkey structural plate movement
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8 DEPOSIT TYPES
The main deposit type being explored for on the Golcuk property is copper with ancillary silver in basic
to intermediate mafic volcanics and associated sediments, which corresponds to the USGS Deposit
Model 23, “Basaltic Copper” (Cox, 1986).
Discordant mineralisation and net veining is also present and could be evidence of hydrothermal
breccias and local structural control of the mineralisation. There is also the possibility that, due to the
proximity of the Kosedag pluton, the mineralisation could be of epithermal or porphyry-related origin.
Basaltic Copper deposits (also known as “Red Bed” copper deposits, and sometimes known as, or
lumped together with, “Manto” deposits) may have diverse characteristics:
(1) They may occur in a number of tectonic settings (eg: intra-continental rifts in Michigan or
volcanic arcs in Chile);
(2) They may occur in rocks of very different ages (Upper Precambrian in Michigan; Upper Triassic
at Sustut) ;
(3) They may be subject to stratum-related controls (eg: basaltic flow-tops in the Keweenawan
Peninsula (Kantor, 2011));
(4) They may be subject to structural controls (eg: vein swarms at Sustut (Figure 18); faults at El
Soldado (Figure 19));
(5) They may be subject to a combination of strata and fault control (Figure 20);
(6) They may occur in the basaltic rocks, or sediments associated with them, or both (eg:
Keweenawan Peninsula (Kantor, 2011);
(7) They may be native copper only, sulphide copper only, or mixed (Figure 21);
This requires that the geologist exploring for economic centres of copper deposition in newly-discovered
or only partially-explored areas of mineralisation such as Golcuk take into account, or test for, all these
characteristics when attempting to vector in on the areas of highest grade and hence highest economic
potential.
The presence on the Golcuk property of a number of the characteristics noted above is supportive of the
Basaltic Copper Deposit Model, and its related models, providing the right conceptual context for
exploration of the property.
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Figure 18: Schematic illustration of vein swarm control on copper deposition in the Sustut Basaltic Copper
deposit (Wilton, 1988).
Figure 19: Schematic illustration of fault control on copper deposition in the Volcanic-Hosted El Soldado MantoType Copper deposit (Wilson, 2003). “V”s in section represent rhyodacite.
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Figure 20: Schematic illustration of stratum and fault control on copper deposition in Volcanic Redbed Copper
Deposits (Lefebure, 1998).
Figure 21: Map showing separation of native copper and sulphide copper deposition areas in the Basaltic
Copper deposits of the Keweenaw Peninasula (Kantor, 2011).
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9 EXPLORATION
Exploration work carried out by Pasinex at Golcuk up until 28 February, 2013, excluding drilling
described in Section 10, falls into the following categories which are described in the sub-sections
below:
(1) Re-analysis of soil samples
(2) Geological mapping
(3) Outcrop sampling
(4) Adit excavation
9.1 Re-Analysis of Soil Samples
Less than half of the soil samples collected at Golcuk by the previous owner were analysed for elements
other than copper. However, when the data available for these elements was plotted on a map,
patterns were apparent which might assist with better understanding the geology of the prospect.
Pasinex therefore decided to recover from the previous owner, for the purpose of re-analysis for missing
elements, those soil samples which were still in a suitable condition for analysis. (A number of sample
bags had broken, resulting in loss of the sample.)
Figure 22 shows soil nickel values that were available prior to re-analysis by Pasinex, and Figure 23
shows the combined historical and Pasinex analyses. Figure 24, Figure 25 and Figure 26 show combined
historical and Pasinex analyses for strontium, zirconium and manganese respectively. Figure 27 shows
the (historical) copper values for comparison with the previous elemental plots.
Rock unit boundaries shown on all soil geochemistry plots are taken from the dateless 1:100,000 MTA
Geological Map H39 “Giresun” shown in Figure 12, the legend of which provides the following unit
descriptions:
Map
Code
Unit Code Description Age
Ta e1e2-4-s Claystone Lower Eocene-Middle Eocene
Td e1e2-10-s Volcano-sedimentary Rocks Lower Eocene-Middle Eocene
Th ea-10-s Volcano-sedimentary Rocks Ypresian (Basal Eocene)
Tth ea-10-s Volcano-sedimentary Rocks Ypresian (Basal Eocene)
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Figure 22: Nickel ppm in soils at Golcuk (historically available data).
Figure 23: Nickel ppm in soils at Golcuk, including Pasinex determinations.
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 38 of 76
Figure 24: Strontium ppm in soils at Golcuk.
Figure 25: Zirconium ppm in soils at Golcuk.
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12 July, 2013 NI 43-101 Technical Report 39 of 76
Figure 26: Manganese ppm in soils at Golcuk.
Figure 27: Copper ppm in soils at Golcuk.
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12 July, 2013 NI 43-101 Technical Report 40 of 76
It is clear from Figure 23 that there is a substantial variation in nickel values in the soil at Golcuk, likely
reflective of the sub-cropping geology in the areas sampled. Of particular interest is the presence of
areas greater than 500 meters in extent with nickel values above 400ppm (often above 600ppm), while
most of the rest of the sampled area reports less than 100ppm nickel (often less than 50ppm). This
leads to the expectation that nickel levels in drill core from sub-surface lithologies should show
equivalent variation, which may be useful in discriminating layering in the drilled andesites and basalts
which is not easily discernable by eye. It is with this consideration in mind that Pasinex has included
nickel in their down hole borehole profiles (See Section 10).
Strontium levels presented in Figure 24 makes clear that there is often an inverse relationship between
nickel and strontium in the soils at Golcuk, suggesting that strontium, too, may prove useful in
discriminating different lithological units encountered during drilling on the property.
In Figure 25, zirconium shows a large coherent area of relatively elevated levels (>170ppm) within the Td
Unit, against a background level over the remainder of the grid of 90 to 130ppm. While not a large
difference, it is one almost certainly indicative of the presence of at least two sub-units within the Td
Unit.
Manganese levels, on the other hand, as shown in Figure 26, vary somewhat randomly across the
sampled area over the range 500 to 2,000ppm, with a couple of small clusters reaching above
2,000ppm. This level of variation is not uncommon in soils, and is likely to arise from pedological
processes rather than from significantly different manganese levels in underlying lithologies.
9.2 Geological Mapping
Detailed geological mapping of the Golcuk drilling area produced by Eurasia (Figure 16) has been
extended by Pasinex to cover both the Golcuk North and Golcuk West soil geochemical anomalies, as
shown in Figure 28 below.
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12 July, 2013 NI 43-101 Technical Report 41 of 76
Figure 28: Map showing extensions to Eurasia geological mapping carried out by Pasinex (cf: Figure 16).
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9.3 Outcrop Sampling
In November and December 2012 Pasinex carried out surface outcrop sampling in the Main Golcuk
target area which broadly confirmed outcrop sampling results obtained by earlier workers in the area.
Of particular note were the five lines shown in Figure 29 below and summarised in Table 7 which were
systematically rock-chip sampled in order to estimate an average grade over a measurable distance.
It is significant that these rock-chip lines achieve comparable grades (e.g.: Line B: 2.4% Cu over 14m) to
those measured in drill core, over comparable distances (e.g: Borehole TGSJ-18, which yielded 2.57% Cu
over 13.5m – see Table 6 above).
Chip Line Number
of sample
Rock Type Width (m) Ave Cu
grade(%)
Ave Ag
grade (g/t)
A
2
Grey, greenish col, spotted hematitic, sericitic, and locally
epidote altered andesitic basalt with patchy malachite
fracture filled albite
5.0 1.7 21.50
B
7
Grey col, spotted epidote altered andesitic basalt with
disseminated hematite including patchy and disseminated
malachite.
14.0 2.4 23.36
C
6
Browish col, completely oxidized, sericitic basalt with
disseminated and patchy malachite.
15.0 2.1 12.80
D
7
Dark grey col, sericitic basalt with disseminated hematite
fracture filled albite and including disseminated and patchy
malachite.
17.5 2.3 16.90
E
2
Dark grey col, rarely sericitic, spotted hematitic brecciated
basalt with disseminated and patchy malachite
5.0 2.7 24.62
Table 7: Description of rock-chip sampling lines at the Main Golcuk soil anomaly.
Limited outcrop sampling was also carried out by Pasinex around the Main North (Figure 30) and Main
West (Figure 31) soil copper anomalies which confirmed the presence of copper mineralisation in
outcrop in these areas.
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12 July, 2013 NI 43-101 Technical Report 43 of 76
Figure 29: Location of rock-chip sampling lines at the Main Golcuk soil anomaly.
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12 July, 2013 NI 43-101 Technical Report 44 of 76
Figure 30: Copper results for outcrop sampling at the Golcuk Main North soil Cu anomaly.
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12 July, 2013 NI 43-101 Technical Report 45 of 76
Figure 31: Copper results for outcrop sampling at the Golcuk Main West soil Cu anomaly.
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12 July, 2013 NI 43-101 Technical Report 46 of 76
9.4 Adit Excavation
In early October, 2012, Pasinex commissioned the mining of a 12 meter-long 2m by 2m horizontal adit
located at North 4450185 and East 400765 in order to fulfill the minimum Golcuk licence mining
obligations for 2012. Its location with respect to historical boreholes is shown in Figure 32 below.
The location of the adit had to be within a small “production area” permitted by the previous licence
owner. Mining of the adit produced no economic mineralisation.
Pasinex geologists subsequently logged the entire 12 meters of adit as being in basalt showing very
minor malachite staining associated with calcite veins. To check for copper mineralisation in the adit,
five adit-wall samples were collected for every one meter of the adit, and analysed for copper by Niton
XRF in the Pasinex laboratory in Horzum. Of these 60 samples, only six measured more than 0.1% Cu,
being the following: 0.12% Cu in the first meter, 0.16% Cu in the second meter, 0.32% and 0.40% Cu in
the fifth meter, 0.22% Cu in the seventh meter, 0.16% in the ninth meter. Most of the other 56 samples
measured less than 0.03% Cu.
For geological interest, single spot samples were collected from five separate malachite-stained areas in
the adit and these yielded the following copper results by Niton XRF: 3.54% Cu; 18.43% Cu; 3.48% Cu;
4.12% Cu and 0.28% Cu. While these are high levels of copper, the extent of the mineralisation they
represent is not considered sufficient to upgrade any of the adit-mined material to any level close to an
economic grade.
A photograph of the adit portal is shown in Figure 33.
Figure 32: Location (center of blue circle) of 2012 Pasinex adit.
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12 July, 2013 NI 43-101 Technical Report 47 of 76
Figure 33: Photograph of 2012 adit portal.
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10 DRILLING
After assuming operatorship of the project in mid-2012, Pasinex loaded all historical drilling results into
the Discover 3D software system for analysis. Figure 34 below shows a plan view of pre-2012 drilling
down-hole copper profiles with perspective comparable to Figure 6. Figure 35 shows a horizontal view
from the north-west, also of the historical drilling copper profiles. Figures 36 and 37 show west-to-east
(L-to-R) and south-to-north (L-to-R) sections respectively through the main mineralised zone at Golcuk.
Figure 34: Plan view of pre-2012 drilling down-hole copper profiles at Golcuk.
Figure 35: Horizontal view from the north-west of pre-2012 drilling down-hole copper profiles at Golcuk.
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12 July, 2013 NI 43-101 Technical Report 49 of 76
Figure 36: Down-hole copper profiles on the N4450180 West-to-East section through the main mineralised zone
at Golcuk.
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Figure 37: Down-hole copper profiles on the E400780 South-to North section through the main mineralised zone
at Golcuk.
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Based on these, and many other, views of the historical drilling data, Pasinex concluded that, unlike the
interpretation presented in Figure 9, the copper mineralisation historically drilled at Golcuk was most
likely sub-horizontal in orientation, with a plunge to the north-east. Boreholes PAS01 and PAS02 were
therefore sited to test for mineralisation plunging to the north-east. The location and technical details
for PAS01 and PAS02 are presented in Table 8 below, and their collars and drill hole traces, including
copper profiles, are shown in Figure 38.
HoleID Easting Northing Azimuth Dip Depth Type Start Finish
PAS01 400,766 4,450,187 75 -50 342.40 HQ / NQ 30-Nov-13 9-Jan-13
PAS02 400,826 4,450,275 90 -60 336.00 HQ 15-Jan-13 14-Feb-13
Table 8: Location and technical details for Pasinex boreholes PAS01 and PAS02.
Figure 38: Plan view of boreholes PAS01, PAS02 and pre-2012 drilling down-hole copper profiles at Golcuk.
Drill hole PAS01 was collared in basalt, and remained in basalt to 187.40 metres. From 187.4 to the end
of the hole (342.4m) the hole remained in andesite. No core was recovered between 261.50m and
273.50m, but overall recovery was some 79%. The entire hole was cut by diamond saw and sampled.
All samples were taken in lengths between 1.00m and 1.50m and analysed at SGS Laboratories in
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
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Ankara. Assay results indicated two mineralised intersections at a 0.5% Cu cut-off: 3.50m from 174.70m
grading 0.54% Cu and 9.70m from 203.70m grading 2.97%Cu, including 6.70m grading 3.7%Cu.
Drillhole PAS02 was collared in basalt, and remained in basalt to 30.50 metres. From 30.50 meters to
the end of the hole (336.00m) the hole remained in andesite, with only trace copper mineralisation. The
entire hole was cut by diamond saw and sampled. All samples were taken in lengths between 1.00m
and 1.50m and those from potentially mineralised intervals were analysed at SGS Laboratories in
Ankara. The balance of the samples were analysed by Niton XRF in the Pasinex laboratory in Horzum.
Table 9 below lists which intervals of borehole PAS02 were analysed at SGS in Ankara, and which by
Pasinex in Horzum.
From (m) To (m) Laboratory
0 40 SGS
40 80 Pasinex
80 145 SGS
145 150 Pasinex
150 170 SGS
170 200 Pasinex
200 250 SGS
250 336 Pasinex
Table 9: Listing of intervals of borehole PAS02 analysed by different laboratories.
In an attempt to investigate the controls on mineralisation, Pasinex geologists logged the following
parameters visually down both boreholes, all of which have been plotted as profiles in Figure 40 and
Figure 41 below, together with the elements Cu, Ag, As, Co, Ni, Zn, Pb and Ca, and magnetic
susceptibility:
PARAMETER LEGEND / Scale
Presence of brecciation SUBU column yellow with black triangles
Presence of chalcopyrite 0 = none; 1 = low; 2 = Medium; 3 = High (incidence)
Presence of bornite 0 = none; 1 = low; 2 = Medium; 3 = High (incidence)
Presence of pyrite 0 = none; 1 = low; 2 = Medium; 3 = High (incidence)
Presence of magnetite 0 = none; 1 = low; 2 = Medium; 3 = High (incidence)
Presence of hematite 0 = none; 1 = low; 2 = Medium; 3 = High (incidence)
Presence of chlorite 0 = none; 1 = low; 2 = Medium; 3 = High (incidence)
Presence of epidote 0 = none; 1 = low; 2 = Medium; 3 = High (incidence)
Presence of calcite veins 0 = none; 1 = low; 2 = Medium; 3 = High (incidence)
Evaluation of this data was incomplete at the time of writing of this report. Note that copper is plotted
in two adjacent columns in the profiles, the first over the range 0 to 1000 ppm, and the second over the
range 0 to 5% copper.
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Special attention is being given by Pasinex to nickel calibration of the Niton XRF instrument used to
analyse certain intervals of borehole PAS02 (Table 9). This is because it is clear from Figure 41 that
Pasinex’ Niton nickel values are consistently higher than the SGS nickel values. At the time of writing,
Pasinex was of the view that the SGS nickel results were correct, and that the Niton XRF instrument was
reading high in the low nickel ranges (below 150ppm nickel). This is an important problem for Pasinex
to solve, as soil nickel values (Figure 23) suggest that there are high-nickel and low-nickel volcanic units
present on the property – a distinction which may contribute to a better understanding of the volcanic
stratigraphy of the property, which stratigraphy may exercise control on mineralisation.
Figure 39 below shows Pasinex drilling operations at Golcuk both before, and during, the snow of the
winter of 2012/2013.
Figure 39: Pasinex drilling operations at Golcuk.
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Figure 40: Geochemical, magnetic susceptibility and mineralogical profiles for Borehole PAS01.
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Figure 41: Geochemical, magnetic susceptibility and mineralogical profiles for Borehole PAS02.
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11 SAMPLE PREPARATION, ANALYSIS AND SECURITY
No information is available with respect to the sample preparation and security procedures adopted by
workers on the property prior to Pasinex. However the following factors give the author comfort that
the results reported for historical drilling accurately represent the Golcuk property:
(I) The availability for inspection and sampling of half-core for all the Turmenka drill core;
(II) The availability of all assay certificates from an internationally-reputable laboratory (ALSChemex) for samples analysed from Turmenka drilling;
(III) Verification assays undertaken by the author and reported in Section 12 below.
All Pasinex samples were prepared by Pasinex staff according to normal industry practice under well
controlled working conditions (Figure 42), and submitted to an internationally-reputable laboratory
(SGS) where they were subject to industry-best-practice quality control during analysis. No special
security measures, other than storage of core and samples in locked premises (Figure 42), were taken by
Pasinex to isolate samples from possible third-party tampering.
The author believes that the sample preparation, analysis and security measures implemented by
Pasinex on the Golcuk project were adequate for the metals of interest, grades expected and
encountered, and level of maturity of the project.
Figure 42: Pasinex core storage and sample preparation facility at Golcuk.
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12 DATA VERIFICATION
Licence number 61567, dated 31 July 2008 was issued to Eurasia by the Minister of Mines under the
Mining Code of Turkey giving Eurasia the right to prospect and mine for base and precious metals within
the boundaries of the area. The document was examined by the author and conforms to the
requirements of the minerals law. These rights have been transferred to Pasinex under the terms of
their option agreement with Eurasia. Copies of the licences are attached as Appendices A, B and C. A
legal opinion confirming ownership was obtained and is attached as Appendix D.
The geology of the Licence area was inspected during some foot traverses on the 29th and 30th October
2012. The geology was verified at selected sites during these traverses.
Verification of the form of mineralisation was carried out by collecting spot samples from sites of earlier
exploration that, to the author, appeared in hand specimen to conform to the earlier descriptions of the
mineralised rock. Detailed field examination with a lens of hand specimens of mineralised rock show
them to contain copper mineralisation in the form of malachite, chrysocolla, azurite and bornite.
Chalcocite and chalcopyrite are reported to be visible at the surface but were only seen in the drill cores
by the author. Other copper minerals such chalcotrichite, tetrahedrite, cuprite and chalcanthite were
reported by previous workers. The mineralisation is fine-grained and mainly disseminated but in some
areas is associated with net veining. The near surface “oxide” mineralisation is strongly developed on
the surface of joints and fracture planes (Figure 43).
Figure 43: Mineralised basaltic breccia from near the new Golcuk adit.
Many of the rocks seem to be basaltic and andesitic volcanic breccias rather than simple basalt and
andesite, the dominant rock names used in the field mapping and core logs of Etibank, Turmenka and
Eurasia. The author’s opinion also conforms to Rio Tinto’s petrological description of the rocks in their
borehole GD 1.
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Quarter core was taken from borehole TGSJ-18 between 84.0m and 106.0m. Assay results confirm the
previous Eurasia values (Table 10).
From
(m)
To (m)
Cu%
(Author & Pasinex)
Cu% ave.
(Author & Pasinex)
Cu%
(Eurasia)
84.0 85.5 0.113 0.113 0.103
85.5 86.0 0.286
1.545 0.50886.0 86.5 1.440
86.5 87.0 2.910
87.0 87.5 3.730
3.113 3.05087.5 88.0 2.950
88.0 88.5 2.660
88.5 89.0 4.620
4.003 4.61089.0 89.5 3.460
89.5 90.0 3.930
90.0 90.5 2.890
3.160 3.06090.5 91.0 3.170
91.0 91.5 3.420
91.5 92.0 2.740
2.573 2.59092.0 92.5 3.250
92.5 93.0 1.730
93.0 93.5 2.640
2.323 2.81093.5 94.0 1.730
94.0 94.5 2.600
94.5 95.0 3.360
1.726 1.59095.0 95.5 1.090
95.5 96.0 0.728
96.0 96.5 3.070
1.726 1.67096.5 97.0 1.245
97.0 97.5 0.863
97.5 98.0 0.725
1.718 2.53098.0 98.5 2.210
98.5 99.0 2.220
99.0 99.5 2.760
1.554 1.25099.5 100.0 1.300
100.0 100.5 0.603
100.5 101.0 0.681
0.498 0.522101.0 101.5 0.588
101.5 102.0 0.225
102.0 102.5 0.135
0.102 0.111102.5 103.0 0.083
103.0 103.5 0.088
103.5 104.0 0.003
0.029 0.034104.0 104.5 0.049
104.5 105.0 0.035
105.0 105.5 0.007
0.211 0.042
105.5 106.0 0.415
Table 10: Borehole assay verification calculations.
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12 July, 2013 NI 43-101 Technical Report 59 of 76
During the field visit an apparent error was noted in the location of some of the drill collars. Further
investigation indicated a probable location displacement of some 44 to 66m to the south west. Details of
this assumption are given in Appendix F.
Figure 44: Photograph showing ancient slag pile and Borehole GS-5 collar location.
The author is satisfied that all the above currently exist in a form readily available for inspection, and
that they are of a quality that supports the takeover of management of the project by Pasinex using the
methods described in this report.
13 MINERAL PROCESSING AND METALLURGICAL TESTING
Rio Tinto in their petrological reports (Reynolds, 1995) indicated that, “the grain size and mode of
occurrence of the copper sulphide minerals is highly variable, but in general, it should prove possible to
produce an acceptable grade of concentrate from the material at a reasonably fine grind size. All the
floatation recoveries from the Pasinex test work appeared to be somewhat low but were best in the
lowest feed grade. The work was of a very preliminary nature and the report indicates that much more
work needs to be done using different parameters.
In Reynolds’ report, a highly credible source, for Anamet he states; “It should be possible to obtain a
reasonable degree of liberation at an appropriately fine grind size.” In sample 3 section 3.2 para 5 he
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12 July, 2013 NI 43-101 Technical Report 60 of 76
describes lamellar hematite intergrown with lamellae of sphene arranged in a triangular pattern and
chamosite representing the altered remains of titaniferous magnetite that consisted of narrow illmenite
oxidation exsolution lamellae that were developed parallel to the octahedral planes of their magnetite
hosts. Alteration converted the magnetite to hematite plus possibly chamosite and the illmenite to
sphene. Figure 5 of Reynold’s report (reproduced as Figure 45 below) shows alteration of a titaniferous
magnetite grain to haematite and sphene.
Figure 45: Titaniferous magnetite replacement by hematite and sphene at Golcuk.
Quarter core of borehole TGSJ- 9 from 91 to 100m was sent for mineralogical test-work to Haccetepe
University of Istanbul laboratory in October 2012 (Appendix J). No conclusions were reported by the
study, which, in the author’s opinion was, in any event, not representative of the mineralisation being
explored.
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14 MINERAL RESOURCE ESTIMATES
Mineral resource estimates made previously by Eurasia (Arioz, 2007) to comply with the Golcuk
property’s licencing conditions were considered inappropriate by Pasinex for the style of mineralisation
and the amount of drilling completed.
The author agrees with this opinion, and believes that the Golcuk property has no mineral resources
that comply with the National Instrument 43-101 standard.
15 MINERAL RESERVES ESTIMATES
The Golcuk property is not considered to have any mineral reserves at the time of publication of this
report.
16 ADJACENT PROPERTIES
Pasinex knows of no exploration work on adjacent properties which is relevant to the exploration of the
Golcuk property.
17 OTHER RELEVANT INFORMATION
No relevant information.
18 INTERPRETATION AND CONCLUSIONS
Judging by the records available to the author, prior to Pasinex taking ownership of the licence, little
serious geological thinking appears to have been invested in trying to understand the surface copper
mineralisation at Golcuk, and the encouraging drilling results associated with it, either in its broader
geological context for target generation purposes, or in respect of structural controls on the known
mineralisation which could guide future drilling.
This provides Pasinex with opportunities to gain insights with positive consequences for discovery where
no attempts have been made to make them before.
While the geology at Golcuk is sufficiently well understood to be able to apply an exploration model
with considerable economic potential (the “Basaltic Copper Model”) to guide exploration, most of the
property has not been subjected to geochemical or geophysical surveying, or mapping at better than a
scale of 1:100,000. This provides the property with considerable potential for discovery of new centres
of mineralisation not contiguous with the existing known mineralisation.
The two copper-in-soil geochemical anomalies that are not contiguous with the central, drilled, anomaly
at Golcuk are examples of these, and both are certainly drilling targets.
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12 July, 2013 NI 43-101 Technical Report 62 of 76
The very small area of the property that has been explored in considerable detail because of the
mineralisation it has been shown to host yields considerable evidence of copper with mineralogy and
grades likely to make the copper easy to recover, should sufficiently large tonnages of such
mineralisation be found. Further, the explored mineralisation appears to be sub-horizontal, occurring
over thicknesses amenable to normal mining techniques, should sufficiently extensive continuous bodies
of the same mineralisation be found.
As the structural controls on the known mineralisation have not yet been worked out, and the bodies of
mineralisation identified to date are relatively narrow with respect to the spacing of drill holes on the
margins of the drilled area, the known mineralisation remains open in a number of directions. In this
regard, Pasinex faces the disadvantage that neither the core nor detailed logs are available for the first
eight boreholes drilled at Golcuk. However Pasinex is attempting to make up for this by subjecting its
own drill core to multi-element analysis and magnetic susceptibility survey, followed by detailed review
of this data, in conjunction with surface geochemical and magnetics data.
The areas currently permitted for underground mining show little potential for economic mineral
resources for open pit mining as they are too small.
Pasinex’s Golcuk licence clearly covers an under-explored area with potential for the discovery of
economic deposits of copper. It has clearly not yet been subjected to 20th or 21st century best-practice
exploration methods, and therefore constitutes an exploration property of considerable merit.
19 RECOMMENDATIONS
The author makes the following recommendations:
In the light of Pasinex’s intention to change to open pit mining to maintain the licence, consideration
should be given to applying for new mining permits located over cropping out mineralisation in order to
maximise the likelihood of producing saleable material.
The whole of the licence should be soil sampled, together with detailed geological mapping.
An airborne magnetic survey of the whole licence, together with a limited amount of follow-up ground
geophysics, should also be carried out.
Geological mapping (with associated prospecting for mineralised outcrop), of the entire property at a
scale of at least 1:25,000 should be completed.
All the core of the available thirteen historical boreholes should be re-logged for interpretation
alongside the two Pasinex boreholes, with data presented as in Figures 40 and 41, to facilitate
interpretation.
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At least four boreholes should be sited in and around the existing drilled area (approximate length =
200m each), based on understandings gained from integration of re-logged boreholes with Pasinex
drilling results, to test for continuity of mineralisation in different directions.
Approximately 800 meters (over 5 or six holes) of drilling should be targeted on the Golcuk West
copper-in-soil anomaly.
Approximately 800 meters (over 5 or six holes) of drilling should be targeted on the Golcuk North-East
copper-in-soil anomaly.
Much of the Golcuk licence is accessible off-road by 4x4 vehicle with no or very limited road
construction. Consequently, reverse circulation drilling is recommended for preliminary sub-surface
exploration of additional copper-in-soil anomalies that are expected to arise from the recommended
geochemical soil survey, as well as for structural targets which may be identified in the detailed
mapping. One thousand meters of RC drilling is recommended for these purposes at this stage of the
exploration program.
No. Exploration Activity Estimated
Cost
Comment
1 Airborne magnetic survey of licence $82,000 2012 Fugro quotation +10%
contingency
2 Inversion of magnetic susceptibility survey to 3D
model, plus expert interpretation
$10,000
3 Complete soil sampling of entire property $160,000 8000 samples @ $20/sample
(collection and Niton XRF
analysis)
4 Complete 1:25,000 geological mapping of property $10,000 6 man-weeks' fieldwork plus
support
5 Re-log thirteen historical boreholes (inc. mag susc.) $10,000 6 man-weeks plus support
6 800m diamond drilling in Main Zone $120,000 $150 per meter all-inclusive
7 800m diamond drilling in West Zone soil anomaly $120,000 $150 per meter all-inclusive
8 800m diamond drilling in N-E Zone soil anomaly $120,000 $150 per meter all-inclusive
9 1000m reverse-circulation drilling $100,000 $100 per meter all-inclusive
10 Contingency (~10%) $68,000
Total: $800,000
Table 11: Recommended budget for the next phase of exploration at Golcuk.
The scale of the budget for the exploration program expected to follow that recommended above and in
Table 11 will be a function of the degree of success of the recommended program.
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20 REFERENCES
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Boztug, D., 2008, Petrogenesis of the Kosedag Pluton, Susehri-NE Sivas East-Central Pontides, Turkey.
Turkish Journal of Earth Sciences Vol. pp241-262
Cox, D.P. and Singer, D.A., 1986, Mineral deposit models: U.S. Geological Survey Bulletin 1693, 379p
Geneli F., 2011, Petrology of the Eocene Volcanism in Central Anataolia: Implications for the Early
Tertiary Evolution of the Central Anatolian Crystalline Complex. PhD Thesis
Kantor, J. A., 2011, Canadian National Instrument 43-101 Technical Report on the Centennial and
Kingston Native Copper, 543S, and other copper sulphide properties
Lefebure, D. V. and Ray, G. E., 1998, Unconventional Metallic Deposits in Volcanic Arcs, British Columbia
Geological Survey
No Author, 2010, T.C.Sivas Valiligi Sivas 2010 Cevre Durum Raporu; 543p
Norton Rose Fulbright, 2013, “Mining in Turkey – Ten Things to Know”;
http://www.nortonrosefulbright.com/ka/knowledge/publications/80049/mining-in-turkeyten-things-to-know
Reynolds I.M., 1995 Ore mineralogy of five copper-bearing samples from the Golcuk project area,
Turkey. Anamet Services RTZ group. Internal report 21p
Wilson, N. S. F, Zentilli, M. and Spiro, B., 2003, A Sulfur, Carbon, Oxygen, and Strontium Isotope Study of
the Volcanic-Hosted El Soldado Manto-Type Copper Deposit, Chile: The Essential Role of
Bacteria and Petroleum Economic Geology, January 2003, v. 98, p. 163-174,
Wilton, D. H. C. and Sinclair, A. J., 1988, Ore petrology and genesis of a strata-bound disseminated
copper deposit at Sustut, British Columbia, Economic Geology, February 1988, v. 83,
p. 30-45
Wright James L: Golcuk property Ground Magnetic Survey GIS Database. Produced for Eurasia by Wright
Geophysics; Internal report 8p (2009)
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 66 of 76
Appendix A Golcuk Exploration Licence
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 67 of 76
Appendix B Biricik Bengisu Dinçer Legal Opinion on Golcuk Licence Status
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 68 of 76
Appendix C Onur Keskin Report on Legal Background to Golcuk Licence
Status
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 69 of 76
Appendix D Golcuk Operating Licence
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 70 of 76
Appendix E Golcuk Forestry Permits
REPUBLIC OF TURKEY
MINISTRY OF FORESTRY AND WATER AFFAIRS
Giresun Regional Directorate of Forestry, Koyulhisar Forestry Operation Directorate,
Karaçam Sub-District Directorate
15.11.2012
Number: B.23.1.06M.1.15.29.00-255.03/397
Issue: 2012 Prices of Field Permission
Mitto Mining Corp.
Emek 4’üncü Cad. 22. Sokak. No:17/8
EMEK/ANKARA
The area which is located in Koyulhisar Forestry Operation Directorate, Karaçam SubDistrict Directorate and its permission was given to Pasinex Exploration and Mining Corp.
(1781,51 m2 access road 9127,30 m2 Waste area) and it is total of 10908,81 m2. Area’s
permission date is started from November, so 2012 calculation sheet of Prices of Field
Permissions is stated below. In order not to allow any flaw, V.A.T. included 6.040,13 TL
should be paid into T.C. Ziraat Bankası Giresun Şubesi Orman Bölge Müdürlüğü Özel Bütçe
Muhasebe Birimi TR94000100012338657425-5002 IBAN numbered account between the
permission start date 11.11.2012 and the final day of payment 11.12.2012, and bank receipts
should be faxed to 0346-3413617 numbered fax of our Forestry Operation Directorate.
For Your Information,
Mesut KAYALI
Head of Forestry Operation
2012 Prices of Field Permission:
10908,81 m2 2012 Price of Field Permission
2011 Price of Field Permission ꞊ 4990,49 TL (Capital)
2012 Price of Field Permission ꞊ 2011 P.F.P. + 2011 PPI %2,57
꞊ 4990,49TL + (4990,49 ×0,0257)
꞊ 5.118.75 TL (2012 Capital)
2012 Price of Field Permission ꞊ 5.118.75 TL
%18 V.A.T ꞊ 921,38 TL
꞊ 6.040.13 TL
Koyulhisar Forestry Operation Directorate, Karaçam Sub-District Directorate,
Coordinates of the Area Which Was Delivered to Pasinex Exploration and Mining Corp.
Coordinates of Waste Field
Insular Parcel Area Die Plate
Waste 9317 00
Road 189 70
Permission Area 9127 30
Point number Y X
Waste/1 400673 000 4450129 000
Waste/2 400673 655 4450128 908
Waste/3 400681 534 4450127 805
Waste/4 400723 000 4450122 000
Waste/5 400754 000 4450121 000
Waste/6 400812 000 4450118 000
Waste/7 400775 000 4450078 000
Waste/8 400725 000 4450058 000
Waste/9 400659 000 4450060 000
Waste/10 400608 000 4450086 000
Waste/11 400641 359 4450108 066
Waste/12 400665 126 4450123 791
Coordinates of Road Permission Field
Insular Parcel Area Die Plate
Road 1781 61
Deliverer: Recipient:
Mesut KAYALI Pasinex Exploration and Mining Corp
Head of Operation
Examination Report
(Permission of Mineral Substructure)
ORKABIS Number: 0306-25
Permission Owner Pasinex Exploration and Mining Corp.
ID Number / Tax Register No: Seğmenler D. V. 7220472123
Province / District / Village: Sivas – Koyulhisar – Gölcük
Permission Issue: 10.908,81 m2 (1781,51 m2 Road 9127,30 m2 Waste)
Mineral Plantation (m2): 10.908.81 m2
License / Certificate / Document Number: License: 61567 Access Number: 248921
Regional Directorate of Forestry: Giresun
Forestry Operation Directorate: Koyulhisar
Forest Sub-District Directorate: Karaçam
Serial and Section Numbers: Karaçam Serial 153 numbered Section
Permission Start/End Dates: 31.10.2008 – 31.07.2018
Confirmation Date and Number: 11.11.2008 / 1680
The area which is specified in details above is belonged to Pasinex Exploration and
Mining Corp and its mineral plantation permission is given by our Regional Directorate with
31.10.2008/1404 numbered confirmation on the date of 28.09.2012 and 1682 numbered
appointment. Moreover, our committee has found no irregularity according to written contract.
Public interest was seen so our Regional Directorate has given the right for constructing a
plantation site in forest area. In IR-61567 license numbered field 9.127,30 m2 waste land,
1.781,51 m2 access road total 10.908,81 m2 area is given to Pasinex According to 6831
numbered Forestry Law and its 16th clause. Hereby, there is no irregularity and this report
prepared by our Regional Directorate. 07/11/2012
President Member Member
Nizamettin EGEPEHLİVAN Mesut KAYALI Yunus Emre GİZLENCİ
Directorate Sub-manager Directorate Chief Directorate Chief
FIELD DELIVERY RECEIPT REPORT
Province: SIVAS Regional Directorate of Forestry: GIRESUN
District: KOYULHISAR Forestry Operation Directorate: KOYULHİSAR
Village: GOLCUK Forest Sub-District Directorate: KARAÇAM
Serial: KARAÇAM
Region Number: 153
Recipient:
Pasinex Exploration and Mining Corp.
Copper Mine Substructure Plantation, 10908,81 M2
(9127,300M2 Waste Land, 1781,51 M2 Access Road)
Giresun Regional Directorate of Forestry, Koyulhisar Forestry Operation Directorate,
Karaçam Sub-District Directorate, Amasya Regional Directorate of Forestry, with 11.11.2008
date and 1680 numbered confirmation 9.127,300 m2 waste land 1.781,51 m2 access road toatal
10.908,81 m2 area’s copper mineral license was give to Eurasia Mining Corp with IR.61567
license number on the date of 31.07.2008. Moreover, according to every rights which is
provided by Mineral Laws and its 5th article this license was transferred to Pasinex
Exploration and Mining Corp, and according to 16th article of Forestry Law and according
to governing regulation’s 13th article given permissions and transfer area’s right which are
on the name of license owners, were transferred to Pasinex Exploration and Mining Corp
by notary and a commitment report was prepared.
Hereby, this field delivery receipt report was prepared. 09/10/2012
Deliverer: Recipient:
Mesut KAYALI Pasinex Exploration and Mining Corp
Head of Karaçam Forest Sub-District Directorate
Examination Report
(Permission of Mineral Plantation)
ORKABIS Number: 0306-108
Permission Owner Pasinex Exploration and Mining Corp.
ID Number / Tax Register No: Seğmenler D. V. 7220472123
Province / District / Village: Sivas – Koyulhisar – Gölcük
Permission Issue: Copper Mine Plantation Permission
Mineral Plantation (m2): 556,50m2
License / Certificate / Document Number: License: 61567 Access Number: 248921
Regional Directorate of Forestry: Giresun
Forestry Operation Directorate: Koyulhisar
Forest Sub-District Directorate: Karaçam
Serial and Section Numbers: Karaçam Serial 153 numbered Section
Permission Start/End Dates: 31.10.2008 – 31.07.2018
Confirmation Date and Number: 31.10 2008/1404
The area which is specified in details above is belonged to Pasinex Exploration and
Mining Corp and its mineral plantation permission is given by our Regional Directorate with
31.10.2008/1404 numbered confirmation on the date of 28.09.2012 and 1682 numbered
appointment. Moreover, our committee has found no irregularity according to written contract.
Public interest was seen so our Regional Directorate has given the right for constructing a
plantation site in forest area. In IR-61567 license numbered field 556,50 m2 underground copper
mine plantation permission was given to Pasinex According to 6831 numbered Forestry Law and
its 16th clause. Hereby, there is no irregularity and this report prepared by our Regional
Directorate. 07/11/2012
President Member Member
Nizamettin EGEPEHLİVAN Mesut KAYALI Yunus Emre GİZLENCİ
Directorate Sub-manager Directorate Chief Directorate Chief
FIELD DELIVERY RECEIPT REPORT
Province: SIVAS Regional Directorate of Forestry: GIRESUN
District: KOYULHISAR Forestry Operation Directorate: KOYULHİSAR
Village: GOLCUK Forest Sub-District Directorate: KARAÇAM
Serial: KARAÇAM
Region Number: 153
Recipient:
Pasinex Exploration and Mining Corp.
Copper Mine Plantation, 556,50 m2
Giresun Regional Directorate of Forestry, Koyulhisar Forestry Operation Directorate,
Karaçam Sub-District Directorate, Amasya Regional Directorate of Forestry, with 11.11.2008
date and 1404 numbered confirmation 556,50 m2 area’s copper mineral underground plantation
license was give to Eurasia Mining Corp with IR.61567 license number on the date of
31.07.2008 (Coordinates are given below.). Moreover, according to every rights which is
provided by Mineral Laws and its 3213th article this license was transferred to Pasinex
Exploration and Mining Corp, and according to all of the 5th article of the law and
according to governing regulation’s 13th article given permissions and transfer area’s right
which are on the name of license owners, were transferred to Pasinex Exploration and
Mining Corp by notary, because a commitment report was prepared and collateral was
paid.
Point Number Y X
Plantation 1/1 400814.000 4450281.000
Plantation 1/2 400819.709 4450281.000
Plantation 1/3 400825.148 4450281.000
Plantation 1/4 400833.000 4450281.000
Plantation 1/5 400833.000 4450267.000
Plantation 1/6 400819.148 4450267.000
Plantation 1/7 400814.000 4450267.000
Plantation 1/8 400814.000 4450267.660
Plantation 2/1 400757.000 4450201.000
Plantation 2/2 400770.069 4450201.000
Plantation 2/3 400776.565 4450201.000
Plantation 2/4 400777.000 4450201.000
Plantation 2/5 400777.000 4450181.000
Plantation 2/6 400763.563 4450181.000
Plantation 2/7 400751.000 4450181.000
Plantation 2/8 400751.226 4450185.518
Hereby, this field delivery receipt report was prepared. 09/10/2012
Deliverer: Recipient:
Mesut KAYALI Pasinex Exploration and Mining Corp
Head of Karaçam Forest Sub-District Directorate
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 71 of 76
Appendix F Annual Production Commitment made by Eurasia Madencilik
A.S. for the Golcuk Project
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 72 of 76
Appendix G Earthquake Risk at Golcuk
Golcuk falls close to one of the areas of higher seismic activity in Turkey (Figure 46).
Figure 46: USGS Seismic Hazard Map of Turkey.
Some 91 earthquakes greater than magnitude 4.0 on the open-ended Richter scale were recorded in
Sivas Province between 1901 and 1999 (No Author, 2010).
In the period 1920-40 epicentres of four earthquakes were within 5km (100km2) of the licence (Figure
47) including one >6 (Figure 48) and a further four, including one >6, since 1901 within 25km (2500km2).
This is a higher density than most of the rest of the province, with about one per 320km2 since 1901.
Golcuk
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 73 of 76
Figure 47: Earthquake epicentres in north-central Turkey (by year).
Figure 48: Earthquake epicentres in north-central Turkey (by magnitude).
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 74 of 76
Appendix H Note on Errors in Golcuk Historical Drilling Collar Locations
During the field visit, in a traverse from the Golcuk Y village, several borehole collars were located and
their positions recorded by a GPS instrument, a Garmin Model 530HCx, as listed in Table 12 below. The
starting station (Station 1, named “CAR”, which plots within 5m of its parked position) and Station 6
could later be positively identified on Google Earth and Bing imagery, as shown in Figure 49 below. One
borehole collar, GS6, was positively identified by the inscription on its concrete cap but could not be
located on the imagery.
Figure 49: Eurasia drill collar locations (yellow) and GPS stations visited (red) by the author plotted on a
georeferenced Microsoft Bing image of Golcuk drilling area.
When the Eurasia collar locations (yellow) were plotted together with the author’s locations (red) (Figure
49) it became evident that corresponding locations were not co-incident.
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 75 of 76
Station 1 was the field vehicle whose position was known in relation to the building in Golcuk Y,
adjacent to where it was parked, and it plots within 5m of its true position. Station 6 is the concrete block
foundation we believe used for Etibank borehole GS-5. On the 1:2000 scale Eurasia “Sivas Golcuk
Geology” map dated 10 December 2007 (that shows hand drawn field mapping with notes and borehole
locations), GS-5 is plotted at the base of, and on the southern side of, the slag dump. On the Bing image
in Figure 49, the Eurasia collar plots at least 22m south of the slag dump, and 53m to the south-south-west
of the concrete base believed to be the actual site. Pasinex’s plotting put the GS-5 collar between the slag
dump and the visible concrete drill machine foundation, that is, within 6m of its actual site.
It is concluded that Eurasia’s co-ordinates are displaced between 44m and 66m south-south-west of their
true positions. This needs to be corrected in all drilling data sets obtained from Eurasia.
# Longitude
(degrees)
Latitude
(degrees)
Station
Name
Matching
Eurasia
Station
Displacement
(metres)
Displacement
Direction
Comment
1 37.833851 40.194665 ADIT Not relevant
2 37.834775 40.196677 Car Correctly located
on satellite image
3 37.834555 40.194713 GD-1? GD-1 52 South-west Evidence of drill
hole
4 37.834611 40.194843 GS-1? GS-1 56 South-west Evidence of drill
hole
5 37.834270 40.194657 GS-4? GS-4 61 South-west Evidence of drill
hole
6 37.835709 40.193923 GS-5 GS-5 44 South-west Concrete drill pad
in place visible on
imagery
7 37.833904 40.194787 GS-6 GS-6 62 South-west Collar name in
concrete
8 37.834156 40.194991 GS-7? GS-7 66 South-west Concrete drill pad
in place
9 37.834991 40.194706 TGSJ17? TGSJ-17 54 South-west Evidence of drill
hole
10 37.812887 40.195700 MAIN
PIT
Not relevant
11 37.833839 40.194393 MET
SAMPLE
PIT
Not relevant
12 37.834854 40.194731 OLD
MINE 1
Not relevant
Table 12: Results of field checking of Golcuk borehole collar coordinates.
Brian H King Pr.Sci. Nat. The Golcuk Copper Project
12 July, 2013 NI 43-101 Technical Report 76 of 76
Appendix I Assay Certificate for Borehole Check Analyses
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P
a g e :
3
-
A
T
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P
a g e s :
3
(A
)
F
in a li z e d D
a te :
2
-
D
E
C
-
2
0
1
2
A
c c o u n t: P
A
S
R
E
S
A
L
S
L
a b o ra tu a r H
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td .
S
ti .
F
a ti h M
a h .
E
g e C
a d .
N
o :7
/
B
S
a rn ic /
G
a z ie m ir
Iz m ir IZ
M
IR
P
h o n e :
+
9
0
2
3
2
2
8
1
7
1
1
0
F
a x :
+
9
0
2
3
2
2
8
1
7
1
2
0
w w w .a ls g lo b a l. c o m P
A
S
IN
E
X
R
E
S
O
U
R
C
E
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L
IM
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E
D
K
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5
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7
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G
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C
A
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K
A
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A
A
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K
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A
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K
A
R
A
T
o : P
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A
R
G
E
T
G
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N
-
P
A
S
/
R
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0
8
C
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1
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2
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8
0
6
S
a m p le D
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2
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4
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R
e cv d W
t. A
g A
s C
d C
o C
u F
e M
n M
o N
i P
b S
Z
n k g p p m %
%
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PDF Document reader online

This website is focused on providing document in readable format, online without need to install any type of software on your computer. If you are using thin client, or are not allowed to install document reader of particular type, this application may come in hand for you. Simply upload your document, and Docureader.top will transform it into readable format in a few seconds. Why choose Docureader.top?

  1. Unlimited sharing - you can upload document of any size. If we are able to convert it into readable format, you have it here - saved for later or immediate reading
  2. Cross-platform - no compromised when reading your document. We support most of modern browers without the need of installing any of external plugins. If your device can oper a browser - then you can read any document on it
  3. Simple uploading - no need to register. Just enter your email, title of document and select the file, we do the rest. Once the document is ready for you, you will receive automatic email from us.

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