DON MARIO MINE OPERATION 2016 TECHNICAL REPORT .Don Mario Mine Operation Technical Report December,

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  • Av. La Dehesa 1201, Oficina 408 Torre Norte, CP 7690277 Lo Barnechea, Santiago

    DON MARIO MINE OPERATION

    2016 TECHNICAL REPORT

    San Juan Canton

    Chiquitos Province

    Bolivia

    Prepared for Orvana Minerals Corp.

    Effective Date: September 30th, 2016

    Report Date: January 27, 2017

    Prepared By:

    Gino Zandonai, M.Sc. C.P., Mining Engineer

    DCGS Exploration and Mining Consulting

  • Don Mario Mine Operation Technical Report December, 2016

    Av. La Dehesa 1201, Oficina 408 Torre Norte, CP 7690277 Lo Barnechea, Santiago

    1

    Date and Signature Page

    The effective date of this technical report is September 30th, 2016. Original signed and stamped by

    _______________________________ Gino Zandonai, M.Sc., C.P. (CRISCO #0155), Mining Engineer, Date: January 27, 2017 DGCS Exploration and Mining Consulting

  • Don Mario Mine Operation Technical Report January 27, 2017

    Av. La Dehesa 1201, Oficina 408 Torre Norte, CP 7690277 Lo Barnechea, Santiago

    2

    Table of Contents

    Date and Signature Page ............................................................................................................................. 1 1.0 Summary .......................................................................................................................................... 9

    1.1 Executive Summary ....................................................................................................... 9 1.2 Technical Summary ..................................................................................................... 13

    1.2.1 Property Description and Location ..................................................................... 13 1.2.2 Existing Infrastructure .......................................................................................... 14 1.2.3 History ..................................................................................................................... 14 1.2.4 Geology and Mineralization ................................................................................. 14 1.2.5 Mineral Resources ................................................................................................ 15 1.2.6 Mineral Reserves .................................................................................................. 17 1.2.7 Mining Methods ..................................................................................................... 19 1.2.8 Mineral Processing ............................................................................................... 19 1.2.9 Project Infrastructure ............................................................................................ 20 1.2.10 Markets ................................................................................................................... 20 1.2.11 Environmental, Permitting and Social Considerations .................................... 20 1.2.12 Capital and Operating Cost Estimates .............................................................. 21 1.2.13 Recommendations ................................................................................................ 21

    2.0 Introduction and Terms of Reference ..................................................................................... 22

    2.1 Scope of Reporting ...................................................................................................... 22 2.2 Sources of Information ................................................................................................ 22 2.3 List of abbreviations ..................................................................................................... 23

    3.0 Reliance on Other Experts ......................................................................................................... 26 4.0 Property Description and Location ......................................................................................... 27

    4.1 General .......................................................................................................................... 27 4.2 Land Tenure and Surface Rights ............................................................................... 29 4.3 Mineral Exploration and Mining Rights in Bolivia .................................................... 31 4.4 Implications of Bolivias New Mining and Metallurgy Law ..................................... 32 4.5 Environmental Liabilities ............................................................................................. 32 4.6 Royalty ........................................................................................................................... 32

    5.0 Accessibility, Climate, Local Resources, Infrastructure and Physiography ................ 33

    5.1 Introduction ................................................................................................................... 33 5.2 Accessibility ................................................................................................................... 33 5.3 Climate ........................................................................................................................... 34 5.4 Local Resources ........................................................................................................... 34 5.5 Infrastructure ................................................................................................................. 34 5.6 Physiography ................................................................................................................ 36

    6.0 History ............................................................................................................................................. 37

    6.1 Introduction ................................................................................................................... 37 6.2 Summarized Property History .................................................................................... 37

    6.2.1 Don Mario LMZ History ........................................................................................ 38 6.2.2 Don Mario UMZ History ....................................................................................... 39 6.2.3 Don Mario Cerro Felix History ............................................................................ 42

    7.0 Geological Setting and Mineralization .................................................................................... 44

  • Don Mario Mine Operation Technical Report January 27, 2017

    Av. La Dehesa 1201, Oficina 408 Torre Norte, CP 7690277 Lo Barnechea, Santiago

    3

    7.1 Introduction ................................................................................................................... 44 7.2 Geological Setting ........................................................................................................ 44

    7.2.1 Regional Geology ................................................................................................. 44 7.2.2 Property Geology .................................................................................................. 47

    7.3 Mineralization ................................................................................................................ 49 7.3.1 Introduction ............................................................................................................ 49 7.3.2 Don Mario UMZ (Modified after Wright et al. (2009) ....................................... 49 7.3.3 Don Mario LMZ (Modified after Wright et al., 2009) ........................................ 52 7.3.4 Don Mario CF and LT Deposits and Regional Prospects .............................. 52

    8.0 Deposit Types ............................................................................................................................... 53

    8.1 Introduction ................................................................................................................... 53 8.2 LMZ, LT and Cerro Felix Deposits ............................................................................ 53 8.3 UMZ Deposit ................................................................................................................. 54 8.4 Other Possible Deposit Models ................................................................................. 54

    9.0 Exploration ..................................................................................................................................... 55

    9.1 Introduction ................................................................................................................... 55 9.2 Exploration Potential .................................................................................................... 57

    9.2.1 Las Tojas ................................................................................................................ 57 10.0 Drilling ............................................................................................................................................. 58

    10.1 Introduction ................................................................................................................... 58 10.2 UMZ and LMZ Drilling Program Details .................................................................... 58 10.3 Cerro Felix Deposit Drilling Program Details ................................................................ 60 10.4 Las Tojas Deposit Drilling Program Details .................................................................. 60 10.5 Drilling Contractors and Equipment