ANNEX腜 A SECREttARY'S CERTIFICAttE 腌 腜 腟 艐 腒 艒 i !inulrs of the Spccial llonrd l\,Icctirrg of J. C. G. llcsourccs Corp. lrc!rl irl ils oflicc .tt 1962 Cl. Nl. l{eclo Aveuuc, euiapo, l\,Ianila 鏺 on JulY 23, l:r1)7 艤 Ir csclrl: .locl 'l'. (jr-r 艤 Yiccrrlc C. Co I ri,cl-t,lr (1. Co 賻 lrlvl' 'l'. Go r\ llarlo I\1. Sarrtiago, jr. 艤 'I ltc t:hlir rrran callcd thc nrccting to ordcr and anrrounccd tlrc prcscncc o[ a quomnr. I lc 艤 irtlirrttt,-'rl thc l)oattl tltat tlle putpose olthc nrccting is to autlrorizc thc Presitlent to cntcr irrirr a Llittclrl l'rrlthrction sharirrg Agrecnrcnt rvitll the Sccrctary oltlrc Dcpartnrcrrt of l.rnirlrurrcrrt arul Nr:tural llcsotrrccs lor and in behall'ofthe conrpany on its projcct sitc 艫 Ioilictl irr tlrc rrrturicipalities ol Alegria, Ivlainit and 'l\rbod, provincc ol Surigao del Nor tc, irtrl alsrr to aIpl}'l'cr an ljxploratiorr l,crnrit Applicalion ovcr the sanrc arca. 艤 t\licl lirr lltrr tltscussiott, thc lloald unaninrously approvctl, on nlotion tnadc arrtl seconrlcd, lirc li.rllur.,,inq r csolul.ions: 艤 lrt,,S{)!,\/lil)'l'llA'l', thc Board authorizc as it hcrcby authorizcs its l'residcnt, Ivlr. Jocl 'i . Oo io ctttcr itttu a Nlincral l'rotlucliou Slrarirrg A*ercenreut rvith the Sccrelary ol tlrc i r,.i':lr 1111.',,1 ol Llrrvirorrnretrt arxl Natural l(csources firr arxl in bchalf ol J. C. G. 艤 !r!::il)l Jl(('li:; COi(l,Ol{A' Ot',i on its projcct sitc in Surigao dcl Norte; 艤 lil,;jj{.}l,yl,:l) liultl'llIll, to authorize its l)r.csitlcnt, lvlr. ]oel'f. Go to apply for an lixPlorlliou I'clnrit ltrr its project iu Suligao dcl Norte w'ith l{ines arrd ccoscierrccs litrrc:rrr utrtl/or l)cpartrncrrt ol l]trvironmcnt and Natural l{csources. 'l lr,,'rc I'cirrlr lro lirrlhcr luall.crs to bc discussed, tlrc nrecting arljournctl. 艤 Ccr tificcl Cor lcct 艤 艫裪 lADO陭 1.菀 ANTIAGO, 艤 AT lliS II荪 : 荽 艫裪 苦 腅 :膌 1腍 .CO 艤 腡 VICENTE C.G0 ll csiilcrrt Dll cct腂 腀 腵 艤 E]荭 VY.1'.G0 腀 Dh cctOr 腶芒 ANNEX腣B V LOCAT10N MAP OR SKETCH PLAN 腜 ANNEX腜 C V EXPLORAT10N WORK PROGRAM V EXPLORAT10N WORK PROGRAM PROPONENT l.ONAME AND ADDRESS OF COMPANY膌 JCG RESOURCES CORPORAT!ON l16F!oor,Gotesco Corporate Centre, Binbid Me10 corner Gil Puyat Streets, a Cty Quiapo,Man腡 A菎N:MR JOELT GO President 2.OLOCAT:ON OF PRO腶ECT The prol莿 3,OAREA OR SIZE OF COVERAGE The project area consists of thirty-nine 81-hectare meridional blocks, with an aggregate area oI 3,288.7676 hectares, more or less. 4.0 PROJECT AREA DESCRIPTION 4. 1 Terrain/Physiography The northem block of the property covering barangays Motorpool, Marga, Poblacion, San Pablo, Del Rosario & Cawilan of Tubod Municipality; barangays Magpayang, Siana & Dayano of Mainit Municipality and barangay Pongtud of Alegria Municpality is characterized by flat to gently rolling area in the west and low but fairly rugged topography in the east. The flat area \ /hich is about 600/o of the northem block has elevations ranging from 0 to 40 meters. The eastem portion is characterized by rugged and karst topography with elevations ranging from 40 to 320 meters. The southem block ofthe property covering barangays San Juan, Alipao, San Pedro & Budlingin of Alegria Municipality and barangay Payapag of Bacuag Municipality has moderale to rugged topography with elevations ranging from 40 meters to 772 meters (the highest peak). 4.2Accessibility Tubod Municipality which is about 36 kilometers south of Surigao City is accessible by land both from Surigao City in the north and is 88 kilometers from Butuan City to the south. Both cities are accessible by regular trips via land, sea and air ftom Manila City and Cebu City. National and municipal roads ftom Alegria, Mainit and Tubod traverse the property. Alegria Municipality is 48 kilometers from Surigao City and around 75 kilometers from Butuan City. 4.3 Drainage System Beyond the eastem boundary of the property, the area is cut and traversed by the headwaters and tributaries of the Campo river which ultimately drains into the Hinatuan Passage. The westem part of the area is traversed by the Timamana & Tubod creeks; Magpayang River; the Siana, Dayano, Alipao and Legaspi creeks. All creeks & river ultimately drain westward into Lake Mainit. 4.4 Vegetation The eastem and southem portions of the property are generally logged- over characterized by second growth trees with much "kaingin' open areas. The westem part is planted with coconut, root crops, com, rice, bananas, fruit trees, other shrubs and wild cogon. The mountainous south block was known before as the vegetable bowl of Surigao del Norte Province while its north eastern part is still classified as timberland. 4.5Land Use on the total 3,288.7676 hectares, it is estimated that about 60% is rogged- over forest and 4oo/o is brushland / grassland and / or agricuttural areJsi. 5.0 DESCRIPTION OF EXPLORATION PROGRAM 5.1Research Work 5.1 .1 Survey of previous worUs on the area 5.1.1.1 Type - data colleclion and compilation of previous works / aclivities / studies done in the area, such as: geochemical survey; geophysical survey; geological mapping including lithology, structures, mineralization & alteration; drilling data; Siana open pit and underground data. 5.1.1.2 Duration - one month 5.1.1 .3 CoveraSe - project site and adjacent areas (3,300 hectares) 5.1.1.4 Proponent - JCG Resour@s Corp. consultants 5.1 .2Data compilation / collation 5. 1.2. 1 Geophysical / geochemical data - mainly Suricon data / "腒 5.'1.2.2 Lithological data - mainly Suricon data 5.1 .2.3 Mineralization / alteration studies - mainly Suricon data 5.1.2.4 Various thematic maps covering the project area - if available 5.1.2.5 Estimated cost - P 100,000.00 5.2 Reconnaissance / Regional Survey or Studies 5.2. 1 Remote sensing studies 5.2.1.1 Type - Landsat imagery (IM) aerial photos of the area 荖 which are being supplied by t,lAMRlA & CERTEZA and 腝 airborne magnetic data will be studied and interpreted enhance the identification to that may serye as loci of regional structural intersections of ore mineralization. lt will also determine other geologic structures such as: faults, folds, geologic contracts, lithology, etc. 5 2 1 2 Duralon腜 one mOnth 5 2 1 3 PropOnent腜 JCG Resouroes Corp膇 nsuitants 521_4 Covemge腜 the study w腡 l cOver the proj莿 膡area&attacent areas(a300荊 莿韍resl 52.1 5 Estimated cost腜 P100,0000o 5.2.1 .6 Output - a slructural map at an appropriate scale which will be a useful aid in the exploration program. 5.2.2Regional Geological Survey \Mtth the results of item 5.1 and 5.2.1 as a guide, mapping and sampling of the favorable areas will be undertaken in the ground. This will involve the identification and plotting of rock types, mineralization, hydrothermal alteration, geologic structures, weathering, zoning-silicification & seritization. One to two kilograms of rock chip sampling from interesting rock outcrops along water @urses and rock exposures, will be conducted. Reports from the Mines and Geosciences Bureau, Suricon and other private groups will be accessed. 5.2.2.1 Covenge - the area will depend on the results of the research work (3,300 hectarcs). 5.2.2.2 Duntion - three months 5.2.2.3 Manpower complement: 1 Geologist 1 Geological aid€/mapper 1 aide/brusher 5.2.2.4 Estimated cost - P 150,000.00 5.2.2.5 Output - a geologic map that will be used to conelate with data from other exploration works in search br potential target areas that will be subjected to semi-detailed exploration works. 5.2.3Regional Geochemical Survey 5.2.3.1 Coverage - soil / sediment (ndge) sampling, rocks chip samples and stream or drainage sampling at 300-meter intervals on all creeks and rivers that are at least more than one kilometer length (3,30O hecfarcs). 5.2.3.2 Sampling Media / Sample Type - the method will require digging a l0-centimeters diameter x 1s-centimeters deep hole with the use of a post-hole digger. About one kilogram of soil sediments will be taken from specific horizons of the soil profile for analysis. 5.2.3.3 Sampling Density / Estimated Number of samples * the sampling density will be approximately 4 to 8 samples per square kilometer or approximately 250 samples. 5.2.3.4 Mode of Analysis / Target Elements - All samples will be analyzed by AAS for Au, Ag, Cu, Pb, Zn, and other pathfinder elements. 5.2.3.5 Manpower complement: 1 Geologist 2 Geological aides 2 aides,/brushers 5.2.3.6 Estimated cost - P 200,000.00 (three months) 5.2.3.7 Output * a geochemical map that will be used to conelate with data fiom other exploration works in search br potential target areas that will be subjec{ed to semidetailed exploration works. 5.2.4Regional Geophysical Survey 5.2.4.1 Type - airbome magnetic and electro-magnetic (EM) are very useful geological tools for exploration of complex ore, especially sulfides. 5.2.4.2 Covetage - the area studied will depend on the results of the research work and the regional geological & geochemical surveys (approximately 1, 500 hectarcs). 5.2.4.3 Duration - one month or more depending on the size of the anomalous areas delineated. 5.2.4.4 Manpower complement: Contractor personnel 5.2.4.5 Estimated cost - P 500,000.00 5.2.4.6 Output - a geophysical map or profile showing how the intensities of electrical conductivity varies over the area being investigated. The map can be used to: a) define the presence of intrusions and faulting on a regional scale, b) define hydrothermally altered rocks. 5.3Semi-Detailed Survey or Follow-up Studies 5.3.1 Geological mapping / alteration studies A semi-detailed geological mapping and alteration studies will be done on areas that have indicated anomalous gold chemistry; coincident alteration or suspected to be mineralized based on the results of the various geological, geochemical & geophysical surveys in the reconnaissance / regional phase. The iesults will later be collated and conelated with other data to determine whether follow_ up.works would still be required or subsurhce geological works, test pitting or diamond drilling is wananted. 5.3. 1 .'l Coverage - the area \Mill depend on the results of the re@nnaissan@ / regional surveys discussed above p p (a rox i mate ly 1, h re 200 ecta s). 5.3.1.2 Duration - five months depending on the size of the anomalous areas delinealed by the re@nnaissance / regional surveys. 5.3.1 .3 Manpower complement: 1 Geologist 1 Geological aide/mapper 1 aide/brusher 1 Cook 5.3.1.4 Estimated cost - P 250,000.00 5.3.1.5 Output - a geologic map at a convenient scale showing tauhs, folds, alterations, mineralization & lithology, outcrops, wo*ings, infrastructure, etc. 5. 3.2Geochemical Survey A semi-detailed geochemistry will be done on areas delineated by regional geochemical study or anomalous catchment basins identified by the regional geological survey. 5.3.2.1 Coverage of the exercise will depend on the favorable results and number of anomalies identified by the reconnaissance / regional surveys (approximately 1,200 hecfales). 5.3.2.2 Sampling Media - Close stream sediment sampling, ridge/spur traverse, rock chip and soil sampling (100 meters, 150 meterc and 25 meters inte|afl will be continued at this stage. Stream sediments across rivers and creeks for Bulk- Leach Extractable Gold (BIEG) will be undertaken on potential areas. ln addition, 50{ram magnetic concentrates will be collected for gold and base metals analysis. About one kilogram of soil will be taken from the "B', horizon of the soil profile for analysis in a geochemical laboratory. 5.3.2.3 Sampling density is estimated to be between g to 16 samples per squarB kilometer. The number of samples will depend on the size of target area that will be delineated by the reconnaissance / regional survey (approximatety 150 samp/es). 5.3.2.4 Mode of analysis and target elemenis will be a multi_element geochemistry for Cu, Au, As, Zn, pb. etc. 5.3.2.5 Manpower complement 't Geologist 2 Geological aides 2 Helpers 1 Cook 5.3.2.6 The estimated cost - P 200,000.00 (thrce months) 5.3.2.7 The output will be a semi{etailed isogram map / assay map. 5.3.3Geophysical Survey 5.3.3.1 Nature or Type - Surface magnetic, EM and lnduced Polarization (/P) surveys will be conducted on potential areas delineated by the reconnaissance / regional gelogical, geochemical and geophysical studies to pick the presence of intrusions and faulting and hydrothermally altered rocks for follor/-up exploration. 5.3.3.2 Coverage - dependent on the number and size of the anomalous areas defined by the reconnaissance / regional surveys (approximately 1,200 hec:tarcs). 5.3.3.3 Manpouer complement: 2 Geologists 2 Geological aides 4 Helpers lCook 5.3.3.4 Estimated cost - P 500,000.00 (four months) 5.3.3.5 Output - a geophysical map which will be collated and correlated with other geological data and interpreted to determine whether a more detailed sub-surfiace exploration works is wananted. 5. 3.4Subsurface investigation 5.3.4.1 Type - Test pitting and trenching will be conducted on the anomalous areas or on outcrop of the mineralized zones delineated by semi{etailed geological / geochemical / geophysical evaluation works to initially determine the lateral extension, grade and other characteristics of the deposits. 5.3.4.2 The number, length and depth of the test pits and trenches will depend on the number and size of the anomalous areas but is projected to be 120 cubic meters and 60 meters, respectively. 5.3.4.3 The number of samples are estimated to be 60 to 90. 5.3.4.4 Mode of analysis and target elements will be wet chemical analysis of test pit and trenching samples for Cu, As, Zn, Pb, etc. Gold and silver will be analyzed by fire assaying. The samples will be sent to accredited laboratories in Manila. 5345 Manpower complement: 'l Geologist 1 Geological aide 1 Helper 1 Cook 5346(three Estimated cost - P 100,000.00 months) 5347pit Output - an isograd map showing the test and trench locations, the conesponding assay values which will serve as guide for the diamond drilling and/or closely-spaced test pits. 5348 Aditing or tunneling 5.3.4.8.1 two 10 meter tunnel / adit 5.3.4.8.2 Duration - two months 5.3.4.8.3 Estimated cost - P 100,000.00 膌 "腒 5.3.4.8.4 Output - These activities will be conducted to determine the lateral / vertical extent, number and width of mineralization / ore zones. 5.4Topographic Survey 5.4.1Coverage - Detailed topographic & boundary survey will be conducted on anomalous / mineralized areas delineated by the semi- detailed exploration works that will be scheduled for closely-spaced test pits, trenching and diamond drilling operations. The survey will also include locations of existing and proposed road network; proposed plant / mill site; tailings pond; waste dump; housing quarters; office buildings. 5.4.2Scale and Contour lntervals an appropriate scale map at 1:10,000 腒/ - 鏺scale or larger, and contour intervals of 1 to 5 meters. 5.4.3Manpower Complement: 1 Geodetic Engineer 1 lnstrument man 1 Recorder 2 Survey Aids '1 Cook s.4.4Estimated cost - P 400,000.00 (thrce months) 5.4.SOutput - a topographic map that will be used as ve(ical and horizontal control of all detailed geological works including diamond drilling and a@ess road preparations covering an area of approximately 200 hectares. 5.5 Detailed Survey or Studies 5.5.'l Detailed Geological Mapping 5.5.1.1 The survey will use a Brunton compa$s, tape, GPS, hand lens, etc. Various geologic batures as hydrothermal alteration, weathering, zoning, silicification, sericitization, rock types, structures will be mapped in target areas which have not been thoroughly explored. These will be correlated with the geochemical and geophysical anomalies to come up with target areas for diamond drilling operations. 5.5.1.2 Coverage - Duration - three (3) months 5.5.1.3 Manpower Complement: 1 Geologist 1 Geological aide 1 Helper 1 Cook 5.5.1.4 Estimated Cost - P 200,000.00 inclusive of direct supervision, labor, materials, supplies & services. 5.5.1.5 Output - a geologic map at an appropriate scale shovving configuration and grades of deposits, traverse routes with structures, sampling points, lithology & other geologic features. After completion of the geological mapping and interpretation, this will be collated \ivith new information gathered from semi{etailed studies to determine \ /hether additional geochemical/geophysical \ rcrk and / or target testing by diamond drilling will be undertaken. 5. 5.2Detailed Geochemical Survey 5.5.2.1 Coverage of Grid Survey - this will cover approximately 100 hectares. Soil sampling will be at 25 meters x 25 meters and eventually nanowing down to 12.5 meters x '12.5 meters. Auger drilling on the highly anomalous areas, if wananted. 5.5.2.2 Estimated Number of Samples - 200 5.5.2.3 Mode of AnalysiVTarget Elements - this will be a multi- element geochemistry for Cu, Au, As, Mo, Zn, and Pb. 5.5.2.4 Duration - two months 5.5.2.5 Manpower Complement: 1 Geologist 1 Geological aide 1 Helper 腝 P 200,000 00 inclusive of dittx膡 5 5 2 6 Estimated Cost 膌 腒 腜 5.5.3.5 Output - core, logs sections, chemical analyses of core samples and their conelalions which will be the basis for the ore reseryes computation. The suLsurface investigation will assure a level of @nridence in the resource interpretalion and estimation that will match the requirement of a pre- feasibility study and / or feasibility study. 5.6 Result lnterpretation Results ftom all the research work, geological mappings, geochemical surveys, geophysical surveys, test pitting, trenching, aditing, tunneling and drilling will be collated, conelated and interpreted and then put into a final report. 5.6.1Duration - three months 5.6.2Estimated cost - P 1 00,000.00 6.0TOTAL ESTTMATED EXPLOMTTON COST (PESOS) 6 1 Summary 菕 腜 ACT!VITIESDURAT10NCOSTS 膌 S) (M菍) (PeS菍 P 100,00000 6.1.1Research Work 6. 1 . 2 Recon naissance / Regional Survey or Studies 1 100,00000 6.1 .2.1 Remote Sensing Studies 3150,00000 6.1.2.2 Regional Geological Survey 3200,00000 6.1.2.3 Regional Geochemical Survey 2500,00000 6.1.2.4 Regional Geophysical Survey 6.1 .3Semidetailed survey or follow-up ~ Studies 腝 250,00000 6.1 .3.'l Geologic mapping / alterations studies 艒 200:00000 6.1.3.2 Geochemical Survey 艓 6.1.3.3 500,00000 Geophysical Survey 6.1.3.4 SuFsurface investigation 6.1.3.4.1 test pitting / trenching 艒 100,00000 6.1.3.4.2 aditing / tunneling 艑 100,00000 400,00000 6. l.4Topographic Survey 6.1.SDetailed Survey / Studies 艒 200,00000 6.1.5.1 Detailed Geologic mapping 艑 200,00000 6.1.5.2 Detailed Geochemical Survey 腀 6. 1.5.3 Sub-surtace investigation 艕 3,500,00000 6.1.5.3.1 Drilling 艕 400,00000 6.1.5.3.2 Test Pitting 100.00000 6. l.6lnterpreiation of Results 3 7,000,000.00 6.l.7Total 50 腝 8,O MAP ToPOGRAPH:C i:50,000 SCALE 腝 腅腒 t腜 腁 膛 膌 荁 膍 腁 腒 ^腧 1 %腵 鑮 裪膜 膍腥 :腒 艘 c`臊 膡 腁, 艘 膡 | : 腤 PAVA膍 腒 ^膍 裪苉 腒腤腰 腀腁腀 腀 腸腪腴 腀 腁 腀 腵腁 腀 腀 裪裪 ,趡 腀 裪 )鏱 l趌 lill::"| 腀 裪 膡 | llilli膡 II膥 腀腤 ) RESOuRCES CORPORA 腀腀 腀 膇 CtTESCo 膜o,Polt^7膜 TO, c腧鍣 tra 6tL rrrrat 腀 腅腅 313., clrr^to, r 腀 腒 腒 腀裪 腟 腃裪腒裪 6 2Cost P2,600,00000 6 2 1Yearl 6 2 2Year2P4,400,00000 7.OSCHEDULE OF ACTiVITIES(CA膍77C膍 荮R菅 腝 荖 Decembcr 4,2002 TEE EONORABLE DIRECTOR Mines & Geogciences Bureau, DEIIR North Avenug Diliman, Quezon City Sir: This is in connection with the JCG Resources corporation Application for Mneral 1S::1,_"1 sharing Ageement denominated as ApSA No. b00032 xiti covering an area of 3288.7676 hectares Iocated in the Municiparities of rubod, Mainit, Alegria ira nu.rug; Province of Surigao del Norte. V Please be informed that I hereby commit to undertake the implementation of the lxnlorafon_-w9rk Program and the Environmental work program 'under the Mineral Production sharing Agreement that may b" issued to JCG Resourcei corporation. Very tuly yours, Cesar O,/Romero Mining Engineer Rego No.882 Geo10gist Rtt No腂 359 芵 PTR No腂 30478241 JRIluary 31,2002 腒 ON苠1躥 :3荔 韕  鎥.mm 豑 J 韄 韕    釷 铫釶 軭 膥 ANNEX腜 D ENVIRONMENTAL WORK PROGRAM 菋 ENViRONMENTAL WORK PROGRAM 腝 3 腝 i 2.1.2.6 lnterpretation of Results 3 100.000.00 2.1.2.7 Total Exp10ntion Cost 50 PHP 7,膇 0,膇0.00 2.2Type and Nature of Mineral Deposits to be Explored and minerals to be Derived Exploration will be br vein and other types of gold ore; copper porphyry ore \ rith associated gold, silver and other secondary minerals. The search for gold, silver and other valuable minerals will cover both the primary vein and disseminated types of ore deposits. 3.0 GENERAL LOCATIONS AND AREAS TO BE COVERED 3. 1 Location and accessibility The area of interest is generally located in the municipalities of Tubod, Mainit, Alegria and Bacuag - Surigao del Norte Province. Tubod Municipality which is about 36 kilometers south of Surigao City is accessible by land both from Surigao City in the north and is 88 kilometers from Butuan City to the south. Both cities are accessible by regular trips 腜 v via land, sea and air ftom Manila City and Cebu City. National and municipal roads ftom Alegria, Mainit and Tubod traverse the property. Alegria Municipality is 48 kilometers from Surigao City and around 75 kilometers from Butuan City. The areas directly afiected by this MPSA application are barangays Motorpool, Marga, Poblacion, San Pablo, Del Rosario & Cawilan of Tubod Municipality; barangays Magpayang, Siana & Dayano of Mainit Municipality; barangays Pongtud, San Juan, Alipao, San Pedro & Budlingin of Alegria Municipality and barangay Payapag of Bacuag Municipality. 3.2Total area covered by the application The MPSA application consists of thirty nine 81-hectare meridional blocks 荭 _腁 covering an area of approximately 3,288.7676 hectares more or less. lt is bounded by the following coordinates: CORNER LAT:TUDE LONGITUDE Block:(荮膍af f,265 0309 Has) 艐 9膋28'30"125膋35'00" 艑 9膋29'30"125膋 35'00" 艒 9膋29'30"125膋34'30" 艓 9膋30'30"125膋 34'30" 艕 9膋30'00" 125膋35'00" 艖 9膋30'00"125膋 36'30" 艗 9膋30'30"125膋36'30" 艘 125膋37'30" 9膋30'30' 艐艏 125膋37'30" 9膋30'00" 艐艐 9膋125膋37'00" 30'00" 艐艑 125膋37'00" 9膋29'00" 艐艒 125膋 9膋29'00"36'30' 艐艓 125膋36'30' 9膋28'30" Block::芡 鷭,20237367膍asl 1 9膋31'00" 125膋34'00" 31'30' 2 9膋125膋34'00" 3 9膋31'30"125膋 33'30" 4 9腂 32'00"125膋 33'30" 5 9膋32'00"125膋 33'00" 6 9膋32'30"125膋 33'00" 7 9膋32'30' 125膋33'30" 8 9膋34'00'125膋33'30" 9 9膋34'00'125膋34'00" 10 9膋34'30" 125膋34'00" 11 9膋 34'30'125膋 35'30" 12 9膋 32'00"125膋35'30" 13 9膋32'00"125膋 35'00" 14 9腂 31'30"125膋35'00" 15 9膋31'30"125膋34'30" 16 9膋125膋 31'00"34'30" 4.0 DESCRIPTION OF EXSNNG ENVIRONI/IENT WHERE WORK IS PROPOSED TO BE UNDERTAKEN 腠 The various environmental data that are reflected in this report are excerpts taken from published reports (A/egna Comprehensive Land Use Plan / Jan. 1999; Tubod Comprehensive Land Use Plan / May 2002; Mainit 20AO Socio Economic Profile; Bacuag Comprehensive Land Use Plan / Aug. 7999).Addtional environmental baseline studies may be undertaken on the various subjects, by the proponent during the course of its exploration activities in preparation br a full blown Environmental lmpact Assessment (E/A), as a requirement for an Environmental Compliance Certificate (ECC). 4.1 Land Environment 4. 1 .'l Topography / physiography The mainland portion of the province is characterized by rugged and mounlainous relief. An unbroken ridge, rising to 1,000 meters extends along the westem side of the province, walling-in the lake (Mainit) to the east and dropping to the coast. The mainland topography reflects tectonic influence arising from lhe province's location on the tip of the Philippine Fault Zone. The area is prone to earthquakes. The eastem side of Dinagat lsland is mountanous with elevations reaching over 900 meters but the westem side of Dinagat and the whole Surigao and the numerous islands are characterized by broken relief or relatively low elevation. The northem block of the property covering barangays Motorpool, Marga, Poblacion, San Pablo, Del Rosario & Cawilan of Tubod Municipality; barangays Magpayang, Siana & Dayano of Mainit Municipality and barangay Pongtud of Alegria Municpality is characlerized by flat to gently rolling area in the west and low but fairly rugged topography in the east. The flat area which is about 60% 腎 of the northem block has elevations ranging from 0 to 40 meters. The 腀 eastem ponion (7% or 372 hectares with 30 to 50o/o slope in Tubod) 腀 is characterized by rugged and karst topography with elevations 腀 ranging from 40 to 320 meters. The southem block of the property 裪 \ .. a' l covering barangays San Juan, Alipao, San Pedro & Budlingin of Alegria Municipality and barangay Payapag of Bacuag Municipality has moderate to rugged topography {heavily dlssected with gullies & high s/opes) with elevations ranging from 40 meters to 772 meters (the highest peak within the application area). 4.1.2Land Use / capability Of the total project area of 3,288.7676 hec{ares, it is estimated that about 600/o is logged over brest and 40o/o as brushland / grassland and / or agricultural areas. A great percentage of the logged-over forest trees have been classifed as lesser known species, meaning having minimal commercial value. The complete absence of primary and secondary regrowth could have been the result of past logging activities followed by slash-and-burn farming. The eastem and southem portions of the property are generally logged-over characterized by second growth trees with much "kaingin' open areas. The westem part is planted with coconut, root crops, com, rice, bananas, fuit trees, other shrubs and wild cogon. The mountainous south block was known bebre as the vegetable bowl of Surigao del Norte Province while its north eastem part is still classified as timberland (2,329 hectarcs in Alegia Municipality). Whatever small clearings that will be required during exploration to give way to spur roads, drill rigs, leveling of drill pads, test pits and lP sampling holes, etc., will not exacerbate the already denuded nature of the area. Tubod Municipality has 3,319 hectares of agricultural lands (coconuf - 53.3%, ice - 11 .8%, fruit trees - 3.9o/o, bananas - 3.3yo, toot ctops - 2.5o/o). Alegria Municipality has 3329 heclares of arable land (50o/o of its total a/ea) with @conuts covering 1,795 hectares; rice - 820 hectares, bananas - 193 hectares; root crops - 52 hectares leaving 469 heclares unutilized. 4.1.3Pedology Chemical analysis of hill, flat land soil and sediments from surface water systems will be done as part of a baseline data study. Farm management practices - ussually the absence or the application of fertilizers, pesticides and herbicides will affect the sediment quality which may be brought about by the natural high levels of agricultural soil leached oul into the river systems. Analysis will be made on samples of total carbonates, total organic matter, nutrient contents and silt-clay fractions. 4.1.3.1 Tubod Municipality has four soil types: 4.1.3.1.1 River wash - sand and pebbles deposited by flood water along the river banks and some portion near the rivers. This is found along Bgys. Timamana and Motorpool. 4 1 31 2 Clay _ a rna腡 eab!e vanety oF earth which is plastic when wet and hardens when dry(菒 Sed for makrr79 btts ard o膡eryl Prlma腡iy :ccated at Bgy. 菏 lan Ca 腝 4_1 3 1 3 Silty Clay Loam soii that is also mixed wtth clay 裪 4.2.1.2 Acld,itV @H) limits as compared to standards sei by the Environmental Management Bureau (EMB), DENR under DAO 34 & 35, Series of 1990; EC; Alkalinity; COs; HCOa; Turbidity; Conductivity; Temperature. 4.2.1 .3 Tolal settleable solids (ISS) 4.2.1.4 Copper content based upon World Health Organization (l,yHO) standards (.05 mg/1) as well standards set by EMB. 4.2.1 .5 lrcn content based on WHO and EMB standards. 4.2.1.6 COD, oil, grease and total mlliforms in comparison to standards set by EMB. 4.2.1.7 Cyanide (mg / 11 Water source in the project site is from artesian wells and springs which are portable and used by residents and livestock for drinking without any treatment procedures. The environmental baseline studies will involve all the river systems and tributaries in the MPSA area. 4.2.2Hydrology Beyond the eastem boundary of the property, the area is cut and traversed by the headwaters and tributaries (fhe Payapag River in Bgy. Payapag, Bacuag Municipality\ of the Campo river which ultimately drains into the Hinatuan Passage. The westem part of the are€l is traversed by the Timamana & Tubod creeks; Magpayang River; the Siana, Dayano, Alipao and Legaspi creeks. All creeks & river ultimately drain westward into Lake Mainit. Alegria contains 5 rivers (Magpayang, Alimpatayan, Candi-is, Magtiaco and Tigbawan); 6 creeks (Alipao, Tugbungon, Anislagan, Legaspi, Magdungao); 2 waler falls (Lemundo, Paraganon); t hol spring (Pongrfud hot sping - with discharge rate of I LPS) and all draining westward into Lake Mainit. Alegria has an annual average rainfall of 3,639.5 mm. The driest month is May (/owesf precipitation of 62 mm.) and the wettest month is December. 4.3 Climatology / meteorology Surigao del Norte falls under type ll climate with no pronounced dry season, but with very pronounced rainfall ftom November to February. The average monthly maximum is 600 mm in December to February and monthly minimum is about 500 mm in August to September. However, the incidence of rainfall during the same months in different yeari appears highly variable. The average number of rainy days per month is 20 lo 25 from November to March and '13 to 16 from April to October. Although open to the Pacific Ocean on the eastem coast, the province is prone to typhoons only at far north which is exposed to about 7o/o ol all typhoons hitting the Philippines. 4.3.1 Predominant Climate Type Type ll (No dry season but with a very pronounced maximum ninfall trom Novemberto February) 4.3.2 WET SEASON November to February 4.3.3 DRY SEASON No definite season 4.3.4 WPHOONS MONTHS November to January 4.3.5 Average Annual Rainfall '144.72 in. or 3,673.8 mm. 4.3.6 Average Annual Temperature 80.4 F 4.3,7 Average Annual Relative Humidity 85o/o 4.3.8 \Mnd Velocity: Monsoon 8 kilometers per hour Tradewinds 5 kilometers per hour 4.3.9 Prevailing \Mnd Direction Northeast ("Habagatl Southwest ('Amihan') 4.3. 10 No. of rainy days in a year 216 Days ln Tubod Municipality, the average number of rainy days per month is 20 to 25 from November to February and '15 to 18 from April to October. ln Bacuag Municipality, climate is type lll category with rainy months ftom October to February Qanuary prccipitation - 1 ,085.3 mm.). Temperature ranges from 24.3lo 32.3C. Warmest period is April to May, while coolest months are January to February. Average humidity is 83%. 4.4Geological / geomorphological environment The geology and the geomorphology of the region continues to influence the hydrological, seismological and sedimentation pattem not only of the area of interest but in the whole Surigao Region. The types of rocks and their structural configuration, eontrol, to a large degree, the manner in which surface run-offis erodes the weathered rock. 4.4. 1 Structural Geology The deformation of the district is rclated to lhe recunent movement along the north-northwest trending Philippine Rifl Zone. As a consequen@, sub parallel fault systems were formed which played significant roles in the structural control of intrusive bodies and mineralization. The significant north-north-easterly trending struc,tures include: 4.4.1.1 The Cadbadaran Fautt (a/so called the Butuan Fauft by Sanfos-Yflrgo, ,979) that is located along the westem shoreline of the Surigao Peninsula. 4.4.1.2 The Jabonga Fault (a/so called the Mainit Fault Dy Santos- Yfiigo, 1979) that is located along the westem shore of Lake Mainit. 4.4.1.3 The Surigao Valley Fauh along which the Siana and Mindanao Mother Lode Deposits are located. Mineralized ftactures in the district seem to follow conjugate fault systems. The major gold mines in the district are situated either on or to the east of the north-north-westerly and vertical to steeply dipping Surigao Valley Fault in areas dominated by Mabuhay type andesite intrusives. Examples of the mineralization trend are Mindanao Mother Lode (fhe Tabon-tabon frend), \Mchman's Prospect and part of Siana. There is a @mmon structural pitch element bet\ reen the Siana massive sulphide zone which pitches south at 30, the Tabon-tabon Vein which has a pitch length of 750 metres and strike length of 240 metres with a southerly pitch of 30, and the parallel SO-vein with a pitch length of 480 metres and a strike length of 150 metres with a 40 pitch (Sanfos-Yfi southerly igo, 1 979). Complementary northeaslerly strustures splaying ofi the Surigao Valley Fault are also important hosts to mineralization, including the East Mindanao, Mapaso and Masapelid (Lakandula or Km 7$ Deposits. Some prominent east-\ rest trends in East Mindanao and Siana are thought to represent mineralized tension fractures (Sanfos-Yirgo, 荽 1979). 4.4.2Stratigraphy The stratigraphy is derived from Mercado et al, 1980 and other sources. 4.4.2.'l Pre-Crela@ous Basement Complex: Sohoton Formation. Basin deposition of clastic sediments and limestone was follored by the intrusion of ultrabasic rock essentially of peridotite, dunite, pyroxenite, gabbros, diabase, and later diorite. These events resulted in initial extensive melamorphism of the sediments and the intrusions were followed by the extrusion of basalt and dacite. The / sediments were transformed into schist, marble, hornfels 腒 腁 and slate while the igneous rocks formed metadiorite, metadacite, gneisses and schists. The metamorphosed sedimentary rocks and various types of amphibolitic schists are collectively known as the Basement Complex or Sohoton Formation. 4.4.2.2 Pal@cene.Cretaceous: San lsidro Formation. The continued intrusion of basalts and andesites in the western range formed the San lsidro Formation. The basalt and andesite facies largely conelate with the Pangulangan basalt delineated by United Nations Development Program (UND\ / Mines & Geosciences Bureau (MGB) geologists at northem Agusan Province. The basalt consists of pillow lavas, locally vesicular with calcite filled amygdules, and with aphyric to plagiophyric textures. lt is commonly chloritised and may pass to greenschist facies metamorphics. Andesite is dark to greenish-grey, fine to medium grained and some lighter coloured varielies are distinctly porphyritic. lt generally consists of plagioclase, augite, and homblende, with magnetite, ilmenite, apatite, titanite and other accessories. Common alteraiion products include chlorite, epidote and zeolite minerals. The basalt and andesite are possibly related to the later phases of basalt and andesite in the Sohoton Formation. 4423 Late Eocene: Humandum Serpentinite. The ultramafic complex consists essentially of peridotite and dunite, which was later serpentinized. These uhramafics commonly form linear sill-like bodies closely associated with the major structures and are possibly derived from underlying ophiolite. 4424 Upper Eocene: Madanlog Formation. The Madanlog Formation consists of conglomerate, sandstone and shale with inter-bedded white to pinkish limestone with occasional serpentinite clasts. lt overlies the older formation with an angular unconformity. 4425 Lower-Upper Oligocene: Bacuag Formation. Deposition of the Bacuag Formation probably occured in the Lower to Upper Oligocene. The main fealures are the inter-bedded basalt flows, basalt-derived conglomerate, and shale with lenses of conglomerate. Extensive o@urences are found in Payapag, Bacuag. 4426 Upper Oligocene to Lower Miocene: Siana Formation. This sequence consists of the bllowing from the base upwards with an approximate thickness of two hundred meters: 4.4.2.6.1 Fine grained blspathic sandstone, 4.4.2.6.2 Limy mudstone and thin-bedded limestone, 4.4.2.6.3 Massive grey to dark grey limestone with inter- bedded coarse calcirudite, calcarenite, calcisiltite and linely laminated felspathic sandstone. 4427 Lower to Middle Miocene: Timamana Limestone. Deposition of sediments mntinued mnsisting of conglomerate, shale and sandstone, thin coal seams felspathic sandstone and the characteristic white limestone with an estimated thickness of two hundred meters. During the middle Miocene, major movement along the Philippine Rift Fautts was active which vvas followed by slow but continuous uplift and block faulting. This was followed by intrusion of the early lpil type andesites in the western range together with dacite porphyry in the Bad-as and Alegria areas. ln late Miocene, there was a period of major structural re.adjustment that resulted in the intrusion of the Mabuhay type andesite. This later intrusion was followed by eiensive fraciuring and brecciation within the andesites and limestones that vyas an important factor for subsequent gold-copper mineralization. 4428 Pliocene: Tugunan Formation-Maniayao Andesite. Extensive erosion of the lpil Andesite and other rocks supplied materials frcr the Tugunan Formation. Volcanism initiated intrusion and deposition of tufiaceous sediments and volcaniclastics. The intrusion of Maniayao andesite sealed off Lake Mainit's northem outlet causing the lake to outflow to the south. 4.4.2.9 Pleistocene: Placer Conglomerate. Deposition of the coarse Placer Conglomerate took place in the coastal regions of Surigao and nearby islands. The eroded materials were derived from elevated lpil and Mabuhay Andesite intrusives. 4.4.2.'l0Quatemary to Recent: Clastic and gravel deposits. Continuous erosion of the existing landmass and beach gravels took place along the westem and northern coastlines of the Surigao Peninsula. 4.4.3 Geologic Hazards 4.4.3.1 Suricon mining operations resulted in the formation of three waste dumps located adjacent to the northeast, west and south of the Siana open pit. Waste dump # 1 is now covered with grasses and shrubs where residents of nearby areas allow their cows and carabaos to graze. Lush vegetation is now present in \ilaste dumps # 2 & # 3. Secondary plant growth (banana, ipil-ipil, acacia) has naturally covered the dump sites. 4.4.3.2 Surimn mining operations also lefl three tailings ponds located to the northwest of the Siana open pit. TP # 1 and TP # 2 are nearly dried up and already vegetated by grasses and shrubs. TP # 3 is cunently flled with water. A pipeline is used to discharge water from the pond to prevent overflow but may also create instability along the pond's dike. Adjacent to the dike wall are located some houses of residents in Barangay Siana. 4.5 Biological Environment L-, 4.5. 1 Tenestrial plants and animals 4.5.1.1 Plants: The present vegetation in the project area which used to be a primary forest and still retain some remnants of this can be classified homogeneously into three palnt community types, viz., the forest community, the understorey plant community and the agricultural community. ln the agricultural communities, two types of farming sysytems are prevalent, i.e., the lowland farming system and the upland farming system which included sedentary farming and shifting cultivation (kaingin). Coconut plantations, rice, bananas, @m and various tuit trees, sweet potato, cassava, gabi, etc., are the most extensive agricultural products produced by both upland and lowland frarmers making that their major source of income. The area, although heavily encroached by .Kaingeros", still retains some small remnants of its primary forest consisting mainly of mossey forest and mid-mountain forest. lt has barely enough second groMh and secondary forest habitats to support the few existing wildlife species that are occassionally seen in these areas particularly during rain periods. Vegetation cover generally consists of cogon, nipa patches, shrubs, tropical grasses and some root crops. 4.5.1.2 Animals: Seasonal variation in the number of bird genus in various locations of the area were recorded. Some wildlib consisting of a few species of amphibians, reptiles, birds (wild ducks), and mammals (cows, carabaoe goafs, p,gs, chhkens) have been commonly seen in the MPSA area. More than halt (@Vo) of the number of these species are several varieties of birds are diumally active. Of the other wildlib species, lizards and snakes are the most common. Relatively, there are more diumally active lizards and snakes than frogs and mammals. Frogs and mammals which are noctural animals were the least observed species except in areas near rivers and creeks. 4.5.2Marine plants and animals (including protists) Preliminary informaiion gathered about the benthic fauna in the area demonstrate the presence of diverse assemblage of organisms in varying stages of their lib cycle. Mollusks and segmented worms are common in the Magpayang and Dayano rivers. Diatoms dominate in areas downstream of the rivers while blue green algae abound upstream where water depth are shallow and slow flowing particulady in points of confluence of two or more tributaries. The dominant zooplanktons are the copepods. The rivers and various creeks including the Siana open pit (now filld with watef) are known to host fresh water fishes like tilapia, carp, mudfish (hrfo) and cyprinidges. 4.6 Socio-Economic Environment 4.6.1Tubod Municipality (l?frh c/ass) with 9 barangays has a total population of 10,318 in 2,022 households as recorded by the 1995 National Statistics ffice (8gys. Cawilan - pp. 1,243; Del Rosaio - Wp. 1,221; Mototpool - pop. 1,214; Marga - pop. 1,199; San Pablo - pop. 1,009; Poblacion - pop. 1,51q registered a population of 1,243. Average population density is 189 (persors per sg. km.) with an annual population growth rate at 10.03%. - Most of the inhabitants are Roman Catholics (86.28%): Aglipayan Church (7.79%o); UCCP (2.18/o): Jehovah's \Mtnessess (1.15%): Seventh Day Adventist (0.89%); INC (0.78yo). - Major dialec{ is Boholano (70.92%). Other dialects include Surigaonon (21.96%), Cebuano (1 .g7yo), Mamanwa (O.AByo), Butuanon (0.77%), Kamiguin (0.56%), Dabawefio (0.51/o). Literacy is 93.79%. - The main source of livelihood are farming, fisheries and livestocks. Agricultural crops produced include com; coconut; legumes; root crops such as camote, cassava; bananas and vegetables. Noted fishes are tilapia, carp, mudfish & cyprinidges. 腬 Livestock include carabao, @\,r/s, pigs, chicken, goats and duck. 腀 腀 - Commercial establishments include 5 rice mills, 140 sari-sari 腮 stores, 9 copra buyers, 3 bakeries, 7 welding shops, 3 cockpits, 5 billiard halls, a plant nursery, 2 pharmacies & a stone cutting shop. Market day ('Tabo) is every Wednesday only. 腝 銚here are bur e!ementary sch膇!s(75 reac韍 ers and膌 ,933 sr菒de膍fs)and tWO nationa! high schOO:s(3膌 reac莕es ar7d 905 sraderrs) 腝 腠 腝 E!ementary sch膇 腠 - Most @mmon illnesses are upper respiratory tract infections, bronchitis, acute gastroenteritis. Mortality resulted from pneumonia, schistosomiasis, pulmonary, tuberculosis, septicemia, and pre-maturity. There is high incidence of malnutrition. - One elementary school each is present in Bgys. Pongtud, San Juan, Alipao, San Pedro & Budlingin with a total of 69 elementary teachers and 2,286 students.There is one high school in the municipality (37 teachers & 986 sfudents). - There are 11 day care centers, 6 preschool leaming centers, 11 basketball courts, 3 volleyball courts. - There is 1 rural bank, 1 cable TV company, 1 public calling office, 1 telephone / telegraph office, 'l SSB radio service, 1 postal station with 1 letter canier; 129 sari-sari stores, 5 welding / vulcanizing shops, 10 rice mills / post harvest facilities, 1 bakeshop, 1 photoshop, 2 billiard halls, 2 mini hardwares, 2 ice cream makers, 3 groceries wholesellers, 1 copra buyer, 1 beauty parlor, 1 Coca-Cola sales office, 'l art shop. Market days are every Monday and Thursday only. - Most municipal and barangay roads have gravel surfacing. The 2.5 km. provincial road to Bgy. Budlingin is a rugged gravel road with poor maintenance & no proper drainage. Most timber bridges are dilapidated & need to be converted to steel or concrete. - Public transport service is via tricycles. 4.6.4Bacuag Municipality ln 1995, the total population was 12,309 in 2,133 households (89y. Payapag - pp. 978 in 170 households). Bacuag population density is 1.28 (W. Payapag - pop. Density 0.401 - Most inhabitants are Roman Catholics (76%); A,glipay (12Yo); INC (6%);UCPP (3%). - Major dialects are Surigaonon (59.77o/o), Boholano (36.6%), Cebuano (2.5%), Mamanwa (0.4%1. The llteracy rate stands at 89o/o. - The main source of livelihood are agriculture (6,193 heclarcs - coanut fi.4%, nce 9.47%, Banana 1 .51%), fisheries and forestry (292 hectarcs of timberland) which involves 77.88o/o of the males work force and 33.577o of the fumale work force. The service sector provides livelihood for 63.1olo of the bmale work force and 15.'l2Yo of the male work force. - Commercial establishment include 28 sari-sari stores, 17 copra buyers, 4 bakeries, 8 rice mills, cockpit, 3 billiard halls, 2 eateries, 1 welding shop, 5 rice retailers, 3 hollor block makers, 2 dry goods stores, 1 funeral parlor, 1 telegraph office, 4 food prooessors, 6 piggeries. - There are 13 elementary schools (91 teacherc and 2,767 sfudents); 2 national and 1 private high schools (49 teachers & 1,157 students). - Houses are singles made of bamboo / sawali (59.95/o); halt @ncrete (20.26Yo); concrete (10.96yo) and wood (8.81/o); houses with no toilet (7.4%). - Most @mmon illnesses are pulmonary tuberculosis, pneumonia, cardio-vascular diseases, hypertension, asthma, diabetes, liver cinhosis. Leading causes of death are tuberculosis, accidents / violence, pneumonia, cardio.vascular diseases. There is a high incidence of moderate malnutrition among children ranging from 13o/o to 38o/o. - There are 4 barangay heatth centers and 1 municipal health center. - Most roads have gravel surface but road conditions are generally poor. Bridges are made of vtrood and need replacement. The main public transport service utilized are motorcycles and light vehicles. - There is a 'l national telecoms (telegnph) and 1 private office - both for long distance telephone services; postal service with one employee; a SSB radio municipal facility; cellphone service in the poblacion is erratic. - 71.680/o of households use electricity vthtle 28.32o/o use kerosene for light. 807o of households use wood for cooking. Water supply is classified level lll in the poblacion; level ll communal water system exists in Barangay Payapag. - Recreational facilities are mostly located in the poblacion. 5.0 DESCRIPNON OF EXPLORATION WORK 5. 1 Description of Exploration Work 5.1.1Geological mapping lnvolves the plotting in maps of appropriate scale, field observations of geologic impressions such as hydrothermal aheration, weathering, zoning, mineralization, silicification, sericitization, layering, rocks types; geologic structures as faults, folds, tractures, shear zones, outcrops, etc. fur systematic conelation and interpretation of major geological events lhat occur in a particular area(s). The equipment to be used are simple brunton compass and tape, hand lens, aerial photographs, GPS, etc. 5. l.2Geophysical methods 5.1 .2. 1 Ground magnetometer survey - involves the use of a magnetometer. A magnetometer is a device that is capable of measuring the earth's magnetic field to an accuracy of a few gammas (where the gamma is defined as 1OS oeMed). The earth's magnetic field varies ftom aboui 0.35 oersted in a horizontal direc,tion at the magnetic poles. Rocks possessing bnomagnetic susceptibility become magnetized in the direclion of the earth,s field and some rocks exhibit permanent magnetization that may be independent of the earth's present field. The presence ofsuch rocks distorts the normal magnetic lield in lheir vicinity. lt is generally knovvn that intrusions have a magnetic signature of relatively less amplitude than volcanics. A map or profile is prepared showing how the magnetic intensity varies over the area that are being investigated. The map can be used to a) define the presence of intrusions and iaulting on a regional scale, and b) define hydrothermal altered rocks. ln the case of a potassium radiometric survey, the results can be used to define potassic alteration around deposits, normally applicable to phorphyry coppergold deposits. 5.1.2.2 lnduced polarization (/fl is one form of geophysical survey making use of an artificial and controlled source and electrical energy being applied to the earth and the resulting eleclrical behavior of the ground is observed at the various detecting stations. A special conductivity-related phenomenon which is the basis for the induced-polarization method, occurs when lhere are mixed modes of conduction, both ionic and electronic, in a volume of earth materials. ln such cases, the ground will conduct altemating current better than direct curent. The electrical conductivity of mineralized ground will change with the frequency of the applied currenl, while the 腠 conductivity of the banen ground will be constant as the frequency is varied. 5.1 .2.3 Remote sensing is based on a concept that all objects above absolute zero temperature radiate electromagnetic energy due to atomic and molecular oscillations. Extemal radiant energy reaching an object is either reflected or absorbed and then re'radiated at a different wavelength. lt follows that all natural objects display a characteristic spectrum of emitted, absorbed and reflected radiation. ln actual prac{ice, however, the spectra are not as distinct as would be desired because of variations in emissions and reflectivity and the variations in its transmission ihrough the atmosphere. lt has a very limited depth penetration and only shallow features 裪 are revealed by both infrared and microwave imagery, a feature that cannot be seen in conventional photographs. lnterpretation is accomplished by the same technique used in photogeology with remote sensing, giving due allowance for the wavelength recorded. From the satellite, the ground is illuminated by radar pulses at fairy low angles to the horizontal, and an image is created of the reflected energy not unlike that from low sun angle aerial photography whiih 腺 losses resolution ' 腀 due to longer wavelengih. Synoptic 腀 imagery from very high altitude satellites -produces 'an 腀 instantaneous "vieu/' of very large areas which has important 腺 applications in structural geology. 5. l.3ceochemical methods lnvorves. the systematic coilection of 1 kirogram stream sediments across river and creeks for Burk Leach Eitractabre co6-iblEeJ analysis. ln addition, SOgram magneric concentrates wltt ue cottected for gotd and base metat analfsis. fne ctremical analfi; ;;st commonry made in exproration is br traces of the ore ,6tai.. rne materials sampred are usually rocks, soils, stream sediments, surface 腜腜 THE LOCAT:0鍣F THE PROPOSED WORK AREA 芌 芌 芌 芌 芌 膋 荧 膍苪 膜 A 腛 腘 艨 腧 腒腜 腌 艫 腂 腁 荒 腒 腁 鑮 芢 腌 =陭 芏 臊 腅 腒 膜 腧 腝 腵 膜膡膜 K4P膜膜 菁 腒 膡 腒 艘 腎 膡 腂 腒 腒 鍤 腃 | 腎腁苨 腌 腃裪 腅腅裪 腀 腒腀膌腄 腶 腎 腵 :腵1膡 腧 膡 1 0-RESOuRCES CORPO RA L00膜 膍7膜 . CETESCO Co鏺oR荮 cE膡 )膜 m, 膜 6:L Pu'膡, 3膜3., o膜 :A'0 , 腟 腒 芲 腅 or ground waters, vegetation and air. The suJfide ores of copper, lead, zinc, nickel and molybdenum are the most amenable to geochemical methods of exploration ho ever precious metals such as gold and silver also respond well. 5.1.4others 5.1.4.1 Geochemical soil sampling - requires digging a 10-cm diameter x 15-cm deep hole using a post-hole digger. About one kilogram of soil is taken ftom the "8" horizon (subsor| of the soil profile fur analysis in a geochemical laboratory fior copper, gold, lead and zinc and possibly other pathfinder elements. 5.1.4.2 Test pitting - requires digging a reclangular pit about 1.20 meters x 1.0 meter with a depth of about 10 - 15 meters. A one to two-kilogram rock sample over 3-meter sample intervals will be collected fiom a vertical channel cut along the side of the test pit. The objective is to determine the vertical persistency of the mineralization, which has been detected by the geochemical soil samples. ~腝 膌5.1.4.3 Trenching requires digging a small canal about 0.60 meters x 2.0 meter deep with variable lengths. A one lo twq. kilogram rock sample will be collected on the floor of the trench at a 3-meter sampling interval. 5.1.4.4 Diamond drilling - is simply the recovery of core samples that are recovered at a pre.determined depth from drill casings, usually every 3 meters. The core samples are split and sent to the laboratory for chemical analysis for Au, Ag, Cu, Mg, etc. The remaining core samples are kept in core boxes for safekeeping after cores logging, petrographic analysis, structural interpretation, etc. A total of 9 diamond drill holes are programmed with an aggregate of 2250 meters. The drill rig is usually skidded to the drill hole site using its own power winch which normally eliminates the need to construct an access road. Drill pads will occupy an area of 5 meters by 5 meters only. Setting ponds and/or sediment traps are put up adjacent to the drill hole. Bentonite and/or portland cement are commonly utilized during the course of drilling. The drill rig consumes only diesel fuei. The diameter of the drill hole may range from four to ten centimeters. 腺 5.2 Preliminary processing of samples 腀 腀 samples that are coilected wil be dried, bagged and sent to 腺 geochemical, mineragraphic, fire assay Manira for and RRS analyses. 5.4 Estimated exploration costs The totar estimated exproration cost br two years amounts to PHP7,000,000.00 6.0 IDENTIFICANON OF POTENTIAL ENVIRONMENTAL EFFECTS 6.1On Land 6.1.1 Surface disturbance OFF the mineral property 6. 1 .1 .1 Road construction - Earth moving activities during road construction u/ill displace rocks and soil along road cuts which could later be transported by run-offs into existing watercourses. 6.1.1.2 Dusts coming trom motor vehicles that travel along roads in built-up areas can pose health hazards to people who have taken up residences nearby. 6.1.1.3 Silts and other brms of sediments that are canied by surface run-offs may be deposited in watercourses which could adversely afbct water quality and increase turbidity. This could also affect the groundwater recharge and/or percolalion thus adversely afbct drinking water supply, in the nearby community, as well as bring harmful effecls on the agricultural productivity of lands dor/nstream. 6.1.'1.4 Photosynthetic processes of the useful aquatic flora in the affected waterways may be reduced and could negatively affec{ whatever benthic activities of marine organisms and other aquatic habitats that could still be present. 6.1.1.5 Migration of forests habitats as a result of the noise and other disturbances created by equipment and exploration activities. 6.1 . 1 .6 The construction of exploration access roads to various sites could increase accessibility to the remaining forest cover and thus open these areas to the exploitation of man, i.e., slash- and-bum kaingin farmers. 6.1 .1 .7 Temporary camps can generate organic and inorganic wastes which may contaminate nearby creeks and/or rivers. 6.1 .2Surface disturbance ON the mineral property 6.1.2.1 Road construction - Earth moving activities during road construclion will entail removal of the vegetative cover, no matter how limited. The affected area will then be subjected to the erosion processes by tonential rains and/or run-of6. However, during exploration, the clearing and brushing of foot trails will create only minimal disturbance on vegetation. Short & narow a@ess roads for diamond drill rig machine may be constructed during the 1d year. this witt @nnect ftom the existing barangay roads into the drill sites. Access roads will facilitate easy travel of exploration equipment ftom one station to another and for manpower mobilizaiion. 6.1.2.2 Holes and/or depressions are created in the ground during trenching, test-pitting, geochemical samplingl @ppox O.-3 meter deep & about 1 to 5 kitognms samplejperfiol4 anO lP sampling (1 sguarc meter & 0.3 meter aeep). Hourever, only a minimal number of test pits and trenc'nes will be introduced during the exploration period. 6.'1.2.3 Survey traverse and stations A survey program to locate the boundaries, monuments and drill sites \ rill be implemented. This acdivity $/ill involve the brushing and clearing of leaves and branches of trees which will render minor negative environmental efiect on the vegetative covers. 6.1.2.4 Field camp facilities Temporary campsites will be located at least 100 meters away trom creeks ancUor river systems and lvill be provided with proper latrine facilities. A waste segrcgation scheme will be introduced to encourage recycling and to lessen the volume of waste generation. Biodegradable waste will be dumped in pits which will be covered with soil and revegetated before site abandonment. 6.1.2.5 Dnlling pads and sumps Sumps (1 meter x 1 meter x 0.5 mete) and pads (10 meters x 10 meters) will be constructed during the 1d year since 7 荶 腜 diamond drill holes will be sunked in the project area. Every drill station shall have its conesponding drilling sump and provided with drums for water supply. Ground leveling over small areas and limited clearing of vegetation will be implemented in setting up these 100 square meters drilling pads. Vegetation will be removed fcr the purpose. Sludge materials, mud, additives, polymers from diamond drilling operations, although contained in sumps and rehabilitated, may still pose minimal adverse efiect due to surface run-ofb. The use of environmentially ftiendly bio-degradable additives, chemicals and effluents in diamond drilling operations will be promoted if necessary. However, it is foreseen that only bentonite and/or portland cement will be used during drilling. 6.1.2.6 Waste/rock dumps During the course of exploration, very minimal amounts of rock or waste will be produced. lt is projected that only in the channeling, trenching or test pitting aciivities shall rockAraste dumps be produced. Since these activities will be introduced in the area on a limited basis, there will be slight to no adverse effects on land during the exploration period. 6.2On Hydrology and water quality 6.2.'lTrenching and driving of exploration aditsltunnels in highly pyritic zones below water tables could be potential source of acid rock drainage. No chemical substances are planned to be used during exploration. We shall minimize stockpiling and accumulation ot unwanted debris or waste. lmmediate backflling of excavations will be done upon work completion. 6.2.2Si1ts and other forms of sediments that are canied by surface run_ofb may be deposited in watercourses, which could adversely atrecl water quality and inctease turbidity. We shall put up setiling ponds and/or sediment traps where necessary. riyater 6.2.3silts canied by run