Pulacayo Project Feasibility Study - Apogee Silver

Pulacayo 1 000 t/d Phase I Feasibility Study - NI 43-101 Technical Report
090644-3-0000-20-IFI-100
Company upon closing of the transaction and issued an additional 3 000 000 Common
Shares and shall pay GMC a cash fee for USD 500 000 eighteen (18) months following
closing of the transaction.
Mr. Gustavo A. Miranda Pinaya, Executive President and in-house legal counsel for Apogee
Minerals Bolivia S.A. provided Mercator with the following property ownership report, dated
August 26, 2011, that details Concession, Lease and Joint Venture agreements that pertain
to the company’s involvement with the Pulacayo and Paca properties. On 23 May 2012, Mr.
Gustavo A. Miranda Pinaya also confirmed that conditions described in this report remained
in place at the effective date of this report. Mercator has relied upon this information for
report purposes and has not independently verified related content.
Comibol/Pulacayo Ltda. Lease Agreement
The Bolivian Mining Corporation (COMIBOL) and the Pulacayo Ltda. Mining
Cooperative have executed a Lease Agreement (Contrato de Arrendamiento)
according to the “Testimonio” No. 235/97 dated 08/01/1997 granted by the Mining
and Petroleum Special Notary from La Paz (María Esther Vallejos). The
Testimonio was registered before Mining Registry under the No. 253 Book “B”
dated 09/05/1997. There is no reference on the “Testimonio” about the
registration before the Potosí Real State Office. However, the amendment
referred ahead was duly registered which implies that the Lease Agreement was
registered.
The lease contract includes the mining concessions — Pulacayo
(1,031 hectares), Porvenir (1,099), Huanchaca (460 hectares), Galería General
(76 hectares) and Rochschild (3 hectares). Santa Bárbara (149 hectares), La
Esperanza (148 hectares), Flora (60 hectares) and Victoria (40 hectares). Cholita
(10 hectares) and Tolentino (220 hectares). All the concessions (a total of 3,296
hectares) are owned by the COMIBOL.
As described on the agreement, contained on the Testimonio 65/2002 dated 13
May 2002, granted by Notary Public No. 003, executed between the Pulacayo
Cooperative and COMIBOL the mining concessions (property of COMIBOL)
“Real del Monte” and “Temeridad” have been included on the agreement
mentioned on previous paragraphs. Both concessions are located on the main
area of PACA (where most of the drilling was performed).
The term of the Lease Agreement is 15 years, starting June 1997, there is no
“day” mentioned on the Testimonio, only the month and the year are described.
The contract is valid until June 2012. The term could be extended.
The Lease establishes a rent equal to 1% of the net production value. If the
payment has a 3 month delay then the contract is terminated.
The Scope of the Lease Agreement is the Mining, Development, Milling and
Marketing of ore from Pulacayo, Ubina and Cholita Chaquiri areas in the Province
Quijarro, Potosí District. Exploration is permitted under the Lease Agreement.
An amendment to the aforementioned contract was executed between COMIBOL
and the Pulacayo Ltda. Mining Cooperative according to the “Testimonio” No.
TWP Sudamérica S.A. Av. Encalada 1257 Of. 801, Santiago de Surco Lima 33, Perú (51-1) 4377473
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