The El Bagre project is located in an area belonging to the municipality of the same name, department of Antioquia, Republic of Colombia, about 200 km to the NE of the city of Medellin, and comprises a mining title, the HHQK-01, from 1746 Ha. Within the project occur quartz veins embedded in dioortic rock – granodiorítica, which present mineralization of Au associated with sulphides. The spatial continuity of the veins is limited: field observations point to a noticeable irregularity in the thickness (maximum 0.8 m), shape, arrangement and continuity in course (side) and in buzation (depth) of the veins, presenting «pinching» and loss of the vein. Au mineralization is related to a system of quartz veins and venes. According to the information collected and analyzed in the field, the little continuity in the veins within the project was confirmed. Projected surface traces of veins could rarely be tracked and/or confirmed in the field and in depth. Au content ranges from <0.005 to 6.0 g/ton in veins, although normal content approaches 3.0 g/ton. Only four veins with continuity in surface and depth could be identified; calculations performed considering parameters defined for veins indicate between 1,300 and 71,000 Oz of Au in the four veins defined within the project. These numbers show relatively low Au content to justify an operation with the standards set by Brexia Resources. The possibility of developing the project is difficult because of the physical and mining-chemical characteristics of the veins of the project, which have Au content less than 4.0 g/ton and thicknesses less than 0.8 – 1.0 m.
ALUVIAL GOLD RESERVES
The result of the Calculation of the total volume of the alluvial areas mineralized with Gold, belonging to the Quebradas El Tupe and La Arenosas that are located within the calculo National Mining Registry RMN-7464, in an area of 137 hectares is Six million seven hundred and twenty-four thousand and two hundred cubic meters(6,724,250 m3) which equates to Nine million four hundred thousand tons approximately (9,413,950 ton), basis for our calculation of probable reservas. The average concentration obtained in fire tests of the CIMEX laboratory is 3.1 g/ton (3.1 ppm) and the average found law or purity of 860 thousandths of Au.
To carry out the Calculation of the Probable Gold Reserves we were based on the minimum value of the Concentration obtained in the samples processed in the CIMEX Laboratory, of the National University of Colombia attached to the National Faculty of Mines, corresponding to 1.9 gr/ton.
The likely reserves are 575,064 troy ounces from Au.