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Conclusions and Recommendations

Bacata’s El Bagre Project is located in the Antioquia District of Colombia. The asset is located approximately 200 km northeast of the city of Medellin and 35 km north of the town of El Bagre.

The region is a significant producer of gold hosting numerous placer-alluvial and vein deposits within a 50 km radius of Bacata’s El Bagre Project.  The Project is also located at the northern end of the Andes Mountains, near the border with Bolivar Department.  The region has been affected by recent Cainozoic stresses leading to volcanism, dyke intrusion, normal, thrust and strike-slip faulting, which may have further modified and concentrated mineral deposits.

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El Bagre Project

The El Bagre Project is prospective for vein gold mineralisation, and placer-alluvial gold. There hasn’t been much modern exploration conducted on the Project due to its remoteness. Therefore, the project is at a relatively early-stage of exploration, and there is a certain degree of risk.  However, based on historical and current mining in the surrounding regions, as well as the results of exploration activities conducted to date, and knowledge of vein and placer-alluvial gold in Western Colombia (in general), SRK considers there is reasonable expectation for the discovery of economic deposits of gold mineralisation. 



To properly evaluate the likely size, style and continuity of gold mineralisation, SRK makes the following recommendations:

Desktop review of all existing public datasets, reports, and in particular, the previous drillhole information that was done in 2012;

Geological and structural mapping (with trenching in areas of poor outcrop)

Geophysical surveys (IP-Resisitivity, and/or ground magnetics) based on the results of the desktop review and mapping

Drilling at PQ then HQ (including oriented diamond core) and bulk sampling to overcome the challenges of high nugget gold.

In SRK’s opinion, further exploration is justified at the budgetary levels proposed by Bacata Resources.