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
agreement was executed by Apogee Minerals Bolivia S.A. and ASC Bolivia LDC.
The mentioned agreement just details the incorporation of Apogee Minerals
Bolivia S.A. to the Joint Venture Agreement and specifies the approval given by
COMIBOL and the Pulacayo Cooperative. The mentioned agreement is detailed
on the “Testimonio” No. 21/2006 dated 01/24/2006 granted by Public Notary from
La Paz No. 038 (Daysi Benito Pozzo) and registered before the Mining Registry
under No. PT-16 dated 06/22/2006.
On 20 January 2011, Golden Minerals Company ("Golden") entered into a
Purchase and Sale Agreement (the "Purchase Agreement") with Apex Silver
Mines. Apex Mining Partners Limited and Apogee Silver Ltd. ("Apogee") pursuant
to which Apogee purchased through other Golden subsidiaries, all of Golden's
interest in ASC Bolivia LDC, which holds a 100% interest in the Pulacayo
Cooperative/ASC Bolivia LDC Joint Venture Agreement through ASC Bolivia LDC
Sucursal Bolivia, the Bolivian branch of ASC Bolivia LDC.
As consequence of the aforementioned and as described on the “Testimonio” No.
438/2011 dated 07/15/2011 granted by Public Notary from La Paz No. 051
(Katherine Ramirez Calderon) on 31 January 2011, Apogee Minerals Bolivia S.A.
and ASC Bolivia LDC Sucursal Bolivia have executed an agreement separating
Apogee Minerals Bolivia S.A. from the Pulacayo Cooperative/ASC Bolivia LDC
Joint Venture Agreement. On the third clause of the mentioned agreement it has
been established that Apogee Minerals Bolivia S.A. will continue with the
exploration duties, even a small scale pilot production, until all the environmental
permits have been issued on behalf of ASC Bolivia LDC Sucursal Bolivia. Current
environmental permits are under the name of Apogee Minerals Bolivia S.A.
As a consequence of the aforementioned, the Pulacayo Cooperative/ASC Bolivia
LDC Joint Venture Agreement has returned to its original scheme with the
Pulacayo Cooperative and ASC Bolivia LDC Sucursal Bolivia as parties.
The Figure 4.2 shows the distribution of Apogee licenses on the property.
4.2.3 Environmental Considerations
The project’s current environmental operating requirements are set out in compliance with
the Environment Law (Law Nº 1333) and the Environmental Regulation for Mining Activities.
A certificate of exemption has been obtained for the exploration phase and an audit of the
Environmental Base Line (ALBA) was carried out between December 2007 and July 2008 by
Mining Consulting and Engineering “MINCO S.R.L.”, a Bolivian based professional
consulting firm with broad exposure to the mining industry. Its audit report summarizes the
work carried out during the Environmental Assessment by Apogee and includes:
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