Oriental Peninsula Resources Group Inc

Mines and Geosciences Bureau
Department of Environment and Natural Resources

REPORT ON THE MINERAL RESOURCE VALIDATION OF
CITINICKEL MINES AND DEVELOPMENT CORPORATION
NARRA AND ESPAÑOLA, PALAWAN

1. INTRODUCTION

On a letter dated September 11, 2007, the Mines and Geosciences Bureau
(MGB) was requested by Citinickel Mining Corporation to undertake a validation of
the mineral resource for the Toronto and Pulot Nickel Mining Projects located in
Narra and Española, Palawan. In response to the said request, the undersigned
technical personnel conducted the fieldwork in the subject property from October 5-
8, 2007.

The objective of the fieldwork was to validate the declared mineral resource
identified and delineated by previous exploration programs in the Citinickel Project
under Mineral Production Sharing Agreement No. 229-2007-IVB

There were three (3) general areas of concerns verified during the field
validation to assess the acceptability of the declared mineral resources, namely: a)
basic exploration data and integrity of database; b) parameters used in the
resource estimation; and c) procedures of sampling, assaying, handling of assay
results and resource models.

2. PROJECT BACKGROUND

2.1 Property Legal Rights

The two (2) claim blocks in the Toronto Nickel Project were applied by
Toronto Exploration in June 1970 and were registered in the Office of the Mining
Recorder in Puerto Princesa on July 30, 1970. Thru an Operating Agreement with
subsequent amendments, the Olympic Mines and Development Corporation
(OMDC) acquired the rights to explore, develop and exploit these claim blocks
which are both covered by Mineral Lease Contacts Nos. V-549 and V-550. The
technical description of which were as follows:

Block Latitude Longitude Area Lease
Contracts
North Block 9°14’30” to 9°15’00” 118°14’30” to 118°14’30” 192 PLC-V-550
South Block 9°12’30” to 9°14’00” 118°15’00” to 118°17’00” 576 PLC-V-550

The Pulot claims were applied for by two mining companies namely, Mondo
Exploration Corporation covering the southern area and Atlantic City Exploration
Corporation for the northern portion on June 2-13, 1970 and were registered on
June 22, 1970.

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OMDC acquired the rights over the area through an Operating Agreement with
subsequent amendments, to explore, develop, and exploit the mineral properties
bounded by the following geographical coordinates:

Block Latitude Longitude Area Lease
Contracts
Area* 9°03’00” to 9°06’30” 117°56’30” to 117°58’30” 1,408 PLC-V-554,
MLC MRD
127-130

Prior to the exploration of the Mining Lease Contracts (MLCs), the Toronto
and Pulot Nickel Projects, OMDC applied for a Mineral Production sharing
Agreement (MPSA) with this Office on August 21, 1996 denominated as AMA-IVB-
40 pursuant to the provisions of the Philippine Mining Act of 1995 (R.A. No. 7942).

On July 18, 2003, OMDC entered into an operating agreement with Platinum
Group Metals Corporation (PGMC) for the Toronto and Pulot claims. Subsequently
on November 4, 2004, OMDC/PGMC applied for four (4) Small Scale Mining
Permits (SSMPs) denominated as follows

SSMP for Toronto : Nos. 37 and 39
SSMP for Pulot : Nos. 38 and 40

PGMC, as the Mine Operator, started development and extraction of nickel
ore from SSMP Nos. 37 and 39 in 2005 while the SSMP Nos. 38 and 40 were
under development. However, PGMC was able to extract and ship more that
300,000 DMT of nickel ore to Japan and Australia. Over extraction and violation of
the Environmental Compliance Certificate (ECC) prompted OMDC to apply for the
revocation of the Operating Agreement with PGMC. OMDC then signed an
Operating Agreement with Rockworks Resources Corporation on April 18, 2006.

On June 9 2006, a Deed of Assignment of the areas covered by AA-IVB-040
was executed in favor of Citinickel. MPSA No. 229-2007-IVB was granted to
Citinickel by the DENR Secretary on January 3, 2007.

2.2 Exploration History

In 1970, OMDC entered into a Joint Venture Agreement with Marubeni
Corporation and Pacific Metals Co. of Japan for the direct shipping of nickel silicate
ore for Japanese smelter plants. A feasibility study was likewise completed which
include the establishment of nickel reserves, the design of mine and shipping
facilities and exploration works by geochemical soil sampling using manual auger
drills, test pitting and core drilling by vibro drilling machines.

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3. LOCATION AND ACCESSIBILITY
3.1 Location and Accessibility

3.1.1 Pulot Nickel Project

The Pulot Nickel Project is located in the municipality of Sofronio, Espanola
with an aggregate area of approximately 1,408 hectares. It is specifically
situated in Barangay Pulot with some portions lying within barangays Labog and
Punang. It is bounded by the following geographical coordinates:

Parcel 3: Espanola Area 1,408 hectares
Corner Latitude Longitude
1 9º06’30.05” 117º58’18.21”
2 9º06’30.05” 117º56’59.62”
3 9º04’19.85” 117º56’59.62”
4 9º04’19.85” 117º56’33.42”
5 9º03’27.27” 117º56’33.42”
6 9º03’27.27” 117º57’52.01”
7 9º03’53.81” 117º57’52.01”
8 9º03’53.81” 117º58’18.21”

Sitio Olympic in Espanola which is 148 km from Puerto Princesa can be
reached through the national Highway via Narra Town. Pulot Nickel Project is
about 12 km north of Sitio Olympic (Highway, km 148).

3.1.2 Toronto Nickel Project

The Toronto Nickel Project is situated in Barangay San Isidro, Narra
consisting of 2 parcels with a combined area of 768 hectares more or less,
which are bounded by the following geographical coordinates:

Parcel 1 : Narra Area = 192 hectares
1 9º14’50.09” 118º15’44.01”
2 9º14’50.09” 118º14’51.59”
3 9º13’58.01” 118º14’51.59”
4 9º13’58.01” 118º15’17.80”
5 9º14’24.05” 118º15’17.80”
6 9º14’24.05” 118º15’44.01”

Parcel 2 : Narra Area = 576 hectares
1 9º13’40.97” 118º16’36.43”
2 9º13’40.97” 118º14’51.59”
3 9º12’48.89” 118º14’51.59”
4 9º12’48.89” 118º15’44.01”
5 9º12’22.85” 118º15’44.01”
6 9º12’22.85” 118º16’10.22”
7 9º12’48.89” 118º16’10.22”
8 9º12’48.89” 118º16’36.43”

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Puerto Princesa City is a 55-minute flight distance from Manila by
commercial flights. From Puerto Princesa, the Toronto Nickel project is 110 km.
south along the National Highway. The project is reached from the national
Highway, km-110 through an old access road and alter improved by previous
operation.

Figure 1. Map of the Province of Palawan showing Española and Narra
and the Citinickel Project area

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4 GEOLOGY AND MINERALIZATION

4.1 Palawan – Geologic Setting
Palawan is an island province of the Philippines located west of the Visayas
Region consisting of three island groups namely, the Calamian, Palawan mainland
and the Balabac groups. These islands generally trend along the southwest axis.
The island of Palawan measures roughly 430 km long with varying widths along its
length. The maximum width of 50 kilometers can be found in the municipality of
Brooke’s Point. Four geological regions can be distinguished on Palawan
mainland, namely north of St. Paul’s, between St Paul’s and the Quezon-Aboabo
gap, south of the Quezon Aboabo gap, and the lowland fringe within the first three
regions. The region north of Mount St Paul is dominated by metamorphic rocks of
the basement complex, with volcanics around Cleopatra’s Needle and the
sedimentary Bangley Formation in the west. Slightly metamorphosed limestone
forms the impressive karst landscape around Mount St.Paul and El Nido Cliffs.
Central Palawan is mainly underlain by ultramafic rocks giving rise to poor soils and
vegetation cover. South of the Quezon-Aboabo gap, the ultrmafic outcrops are
mixed with undifferentiated volcanic and tertiary limestone. Tertiary sandstones
and shales occur along the south-west coast. The lowland fringe of alluvial plains
and terraces are extensive along the south-eastern half of the mainland such as the
plains of Narra, Aborlan and Brookes Pont. These are virtually absent in the north
except around Abongan (HTS, 1983)

The Sabang thrust or Ulugan Bay Fault divides structurally the province into
Northern and Southern Palawan.

Northern Palawan is composed of pre-cretaceous sedimentary and
metasedimentary rock formations. Exposed in the north-central portion of this
structural unit is the basement which is made up of phyllitic rocks and mica schist,
overlain by Tertiary sedimentary formation. These rock units exhibit widespread
deformation which is believed to have resulted from the collision of the western
Palawan terrain/structural unit with the proto-Philippine are during the Miocene
period.

The Southern Palawan structural unit consists of basal formations found
southwest of the Ulugan bay Fault and is composed of Cretaceous to Oligocene
sediments and ultramafics. An ophiolite suite believed to be eocence overlies the
basal formations. Basalt and ultramafics abundantly occur in the central apart of
the terrain and form the Victoria Mountain. The proposed nickel mining project is
situated in this structural group.

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Figure 2. Geology of Palawan

6


Table 1. Brief Geology of Palawan Island

Age Rock Type Geological Descriptions
Symbol
Paleogene- Basalt/Green Schist Kpgb Show increasing metamorphism to greenschist
Cretaceous facies towards the contact with the ultramafics.
- do - Sandstone & Kpgs Show increased metamorphism to quartz-
Shale/Quartz Sericite sericite schist towards the ultramatic contact.
Schist
- do - Harzburgite Khz Dark green color resulting from pervasive
serpentization. This rock unit occupies the
lower apart of the ophiolite. Parent rock of
nickel mineralization through tropical
weathering process.
- do - Dunite Kdu Occurs as distinct differentiate bodies in the
harzburgite. The rock unit is strongly
serpentized and is primary host to massive or
disseminated chromite deposits. Parent rock of
good nickel mineralization through weathering
process.
- do - Gabbro Dyke Kgbd Fine to medium grained and equi-granular. To
duke margins are chilled to a diabasic texture.
- do - Gabbro Kgb Medium to coarse grained, massive.
- do - Diabase Kdb Dark green to dark gray occurring as dykes
between basalts and gabbros.
- do - Basalt Kba Dark gray and massive, in places exhibiting
pillow structure.
Miocene Limestone N1 Massive and calcareous siltstone interbeds,
fossiliferous and karsted.
- do - Sandstone & N2 Calcareous matrix with intra-formational
Mudstone conglomerate with clasts of sandstone,
mudstone and basalt.
Quaternary Alluvial Qal Unconsolidated deposits including organic
debris along major and coastal area.

4.2 Brief Profile of Palawan Nickel Resources

Ore Deposits: Nickel mineralization consists of (1) nickel laterite and (2)
nickel silicate or garnierite/saprolite ores, both of which were formed through
tropical chemical weathering of ultramafic rocks. Comparative chemical
analysis of these type types of nickel ores are presented below:

Table 2. Comparative chemical analysis for nickel ores

Element Nickel Silicate (%) Nickel Laterite (%)
Ni 2.39 1.36
Co 0.04 0.14
Fe 17.00 46.00
SiO2 35.80 7.70
Mg0 20.90 2.40
Al003 1.98 5.43
Cr 0.75 2.81
Mn 0.31 0.81

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5. EXPLORATION WORKS AND DATA SUBMITTED BY CITINICKEL

5.1 Mineral Exploration Data

Main Data Source : Test pits
Total Number of Test Pits : 1,762
Total Aggregate Depth : 16,609 meters
Average Depth Per Test Pit: 9.23 meters
Sampling Intervals : 1 meter
Average Specific Gravity : 1.175

5.2 Topographic Map

The topographic map submitted by Citinickel based on its survey data tied
to local and national grids was used in the estimation of the mineral resource.
The survey points are in Philippine Trans Mercator system units.

5.3 Test Pit Location

Test pits were surveyed for their location and elevation based on local grid
coordinates tied to local and national grid. Test pits were marked with wooden
stacks placed over the test pit collar. Spot checking and verification of locations
and positions of randomly selected test pits was conducted by the validating
team using Global Positioning System (GPS) receiver. Test pit surveys have
been provided to the undersigned inclusive of test pits database.

5.4 Sample Preparation Procedures and Methodology

Test pit samples are placed in sample bags, marked and logged in a
sample book as to their location and description. The marked and logged
samples are transported to a storage area for inventory and logging. The
samples are dried prior to manual crushing. The crushed samples are then
mixed and quartered and sent to an assay laboratory.

5.5 Methodology Used In Mineral Resources Estimation

Citinickel generated three dimensional block models. Exploration, geologic
and assay data of each sample were recorded in a conventional spreadsheet and
used as input in the generation of the block model. The test pits were analyzed in
both horizontal and vertical sections to determine the geometry of the
mineralization using geological analysis. Statistical and variogram analysis were
also conducted to determine the numerical character and average range of
influence of the sample grades. The appropriate resource classification based on
the amount of geological knowledge was applied in the overall analysis to

8


delineate the various types of resources within the identified mineralization
envelope.

Selective mining units (SMU) of 25 meters x 25 meters horizontal
dimensions and 3 meters high were fitted into the mineralization geometry. The
average nickel and iron grade in each block or SMU were interpolated using
Inverse Distance Squared. The volume of mineralization was then estimated
using the volumes of blocks whose average grade are within the selected cutoff
grade.

5.6 Results Of Mineral Resource Estimation by Citinickel

Citinickel submitted a mineral resource estimation report together with all
available exploration database including a total of 1,762 test pits with an
aggregate depth of 16, 609 meters and an average depth of 9.23 meters test pit.
Citinickel estimated a resource for the Pulot, Española and Toronto, Narra area
using a resource classification of measured, indicated and inferred resources. The
total resource estimate for the Pulot, Española area is 10.3 million metric tons @
1.51% Ni and 27.72% Fe. The total resource estimate for the Toronto, Narra area
is 50.2 million metric tons @ 1.55% Ni and 15.28% Fe. The average specific
gravity used for both areas ranges from 1.22 to 1.32.

6. MGB VALIDATION OF THE SUBMITTED RESOURCE ESTIMATE

The undersigned validated Citinickel declared mineral resources through field
verification of test pits, storage inspection, check sampling, laboratory analysis of
check samples, review of geological interpretation and re-estimation of the volume
and average grade of the delineated mineralization.

6.1 Confirmation of Test Pit Locations

Using the digitized map submitted by Citinickel, sixteen (16) test pits were
randomly selected and verified during the fieldwork (Appendix 2). Their collar
positions were checked using a Geographic Positioning System (GPS)
receiver. While differences were noted in some GPS readings, the overall
location of the sixteen test pits were generally accurate as reported.

6.2 Inspection of Test Pit Samples

Sample of randomly selected test pits in the storage warehouse were
inspected and compared with the descriptions in the submitted data. The
written descriptions generally agree with the physical characteristics
observed in the split cores and surface samples.

6.3 Collection And Laboratory Analysis Of Check Samples

Gathering of check samples from randomly selected test pits was conducted
during the course of the fieldwork. These samples are intended for

9


laboratory analysis by the MGB to confirm the veracity of the submitted
assay report as well as the declared grade of the deposit.

A total of fifteen (15) check samples were collected from randomly selected
test pits by channel and grab sampling using sample pick. The samples
collected were placed in a sample bag, properly tagged and sent to the MGB
assay laboratory for nickel, iron, and cobalt content analysis.

6.4 Review of Geological Interpretation

The mineralization outline delineated by Citinickel was reviewed and
compared with available geological report and assay information. The MGB
interpretation which consist of four geological mineralization zones, namely:
overburden, limonite, saprolite and bedrock, relatively agrees with the
mineralization outline generated by Citinickel in both horizontal and vertical
sections.

6.5 Estimation Parameters:

Where deemed appropriate by standard practice and as used in similar
deposits elsewhere in the Philippines, most of the parameters used by
Citinickel were adopted and employed in the estimation of tonnage and
grade of the nickel deposit. These parameters are as follows:

6.6 Cut-Off Grade

Citinickel’s estimate shows the grade tonnage using different grade ranges
to show the maximum potential resource of the project area. Grade range
for resource classification is 1.51% to 1.55% Nickel.

6.7 Specific Gravity

The specific gravity used in the resource estimation for limonite and saprolite
are S.G. 1.1 and 1.35 respectively.

6.8 Block Model Dimension

In modeling the blocks, the dimensions of the selective mining unit (SMU)
used to estimate the tonnage and grade of the Citinickel deposit was 25
meters x 25 meters in the horizontal plane and 3 meters in the vertical plane.

6.9 Resource Estimation Methodology

The following procedure was generally employed in the estimation of the
deposit:
a. Construction and validation of the integrity of the exploration database
b. Construction and validation of the topographic map
c. Statistical and geostatistical analysis of the sample assays

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d. Generation of vertical and horizontal sections using geological and assay
data and a cut-off grade.
e. Generation of 3-D blocks and estimation of block volumes.
f. Interpolation of block grades

6.10 Construction And Validation of Exploration Database

The drill and assay database which were submitted by the company in MS
Excel format were compiled and converted into CSV format. Internal
consistency and possible errors were checked against the entries in the
spreadsheet. There were a total of 16,995 assays values recorded in the
spreadsheet. Nickel assays were composited in three (3) meter fixed length
interval to harmonize with the vertical thickness of the blocks.

The database used the following table formats for the drillhole information
(Tables 3, 4 and 5).

Table 3. Drillhole Information - Header
Hole ID North East Level Depth
195A-05 1003900 385660.9 274 9.0
195A10 1003900 385810.9 300 7.0

Table 4. Drillhole Information - Survey
Hole ID From To Depth Azimuth Dip
195A-05 0 9.0 9.0 0 -90
195A10 0 7.0 7.0 0 -90

Table 5. Drillhole Information - Assay
Hole ID From To % Ni % Fe % Co
195A-05 0 4 1.28 43.04 0.11
5 7 1.93 14.4 0.03
195A10 0 5 1.64 33.24 0.09
6 9 1.40 12.60 0.06

6.11 Construction And Validation Of Topographic Map

The topographic map used in the estimation was based on a topographic
map submitted by Citinickel in Autocad (DWG) format digitized at 20.0 meter
contour interval and converted to DXF format to create topography
triangulations of the project area.

The topographic map of the project area showing test pit locations is shown
in Appendix 2 and 3.

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6.12 Generation of Vertical And Horizontal Sections Using a Cut-off Grade

A total of four (4) geologic zones based entirely on the grade ranges of
nickel and iron was used in the resource model. Boundaries were delineated
based on the interpretation of mineralization envelope per section with the
following specifications:

Table 6. Geologic Zones

Geologic Zones Ni Fe
Overburden < 0.8 > = 20%
Limonite > 0.8 > = 20%
Saprolite > 0.8 < 20%
Bedrock < 0.8 < 20%

6.13 Creating A Solid Representation of Interpreted Mineralization

The outline of the mineralization envelope for each section was generated
by connecting (or wiring) the mineralization intercepts in each test pit to
provide a comprehensive and interactive 3D view-profile of the deposit. By
wire framing a solid wire model is formed representing the lateral and
vertical extent of the deposit. The non-intersecting surfaces were stitched
together to create a solid representing the Citinickel deposit. The solid mass
generated was validated to make sure no solid problems are encountered
later in the block modeling.

6.14 Block Model Generation And Estimation Of Volume

Employing a 25 meter x 25 meter x 3 meter selective mining unit, three-
dimensional block models within the mineralization envelope were
generated. Each whole block corresponds to a volume of 1,875.00 cubic
meters. Once the block model is populated with rock type, density,
percentage and grade data, tonnages were reported through volumetric
procedure.

6.15 Interpolation Of Block Grades

Using the results of the variogram analysis on the assay database,
interpolation of the nickel grades in each of the blocks was made using
Inverse Distance Squared (IDS) Method employing an appropriate search
radius.

6.17 Results of Mineral Resources Estimate by MGB

The parameters used for resource classification for the measured, indicated
and inferred resources utilized an area of influence for both the limonite and
saprolite zones as shown in tables 7 and 8. The summations for both zones

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represent the total of the resource inventory by classification shown in
tables 9 and 10.

Table 7. Parameters used in resource classification
for limonite

LIMONITE
PARAMETERS USED IN
AREA OF INFLUENCE
RESOURCE
CLASSIFICATION NORTH SOUTH LEVEL
MEASURED 50.00 50.00 3.00
INDICATED 100.00 100.00 3.00
INFERRED 200.00 200.00 3.00

Table 8. Parameters used in resource classification
for saprolite

SAPROLITE
PARAMETERS USED IN
AREA OF INFLUENCE
RESOURCE
CLASSIFICATION NORTH SOUTH LEVEL
MEASURED 25.00 25.00 3.00
INDICATED 50.00 50.00 3.00
INFERRED 100.00 100.00 3.00

The volumetric run conducted by the MGB using the above parameters
gave an estimate of 9.65 million metric tons @ 1.51% Ni and and 44.8
million metric tons @ 1.55% Ni for the Pulot and Toronto deposit
respectively. The specific gravity used was adapted from the one used by
Citinickel in their estimation. Tables 9 and 10 below shows the details of the
estimate.

Table 9. MGB Resource Inventory by Classification of Pulot,
Española

RESOURCE INVENTORY BY CLASSIFICATION
RESOURCE
DMT %Ni %Fe %Co SG
CLASSIFICATION
MEASURED 4,642,286 1.43 34.30 0.08 1.16
INDICATED 3,123,499 1.58 21.86 0.06 1.27
INFERRED 1,894,040 1.59 19.75 0.06 1.28
TOTAL 9,659,826 1.51 27.34 0.08 1.22

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Table 10. MGB Resource Inventory by Classification of Toronto,
Narra

RESOURCE INVENTORY BY CLASSIFICATION
RESOURCE
DMT %Ni %Fe %Co SG
CLASSIFICATION
MEASURED 11,217,919 1.60 21.26 0.06 1.26
INDICATED 14,439,300 1.57 13.62 0.04 1.34
INFERRED 19,232,123 1.51 13.11 0.03 1.34
TOTAL 44,889,341 1.55 15.31 0.04 1.32

7. RESULT OF CHECK SAMPLES ANALYSIS

Check samples taken during the fieldwork were sent to the MGB laboratory for
analysis of nickel, iron and cobalt contents. The results of the analysis gave an
average variance of 0.095 for Ni in the Pulot, Española area and 0.327 for Ni
between the assay results of MGB and that of Citinickel (Appendix 4 and 5).
A statistical t-Test, was performed to evaluate the significance between the
variance of the nickel assays of MGB and that of Citinickel. Computation of the
statistical t-Test on the nickel assays showed that they do not differ significantly
(Appendix 4 and 5).

8. CONCLUSIONS

The general methodology applied by Citinickel in the estimation of its mineral
resources in Narra and Española appear to follow the general standards as
observed in similar mining projects in the country. The integrity of the exploration
database was duly validated by checking for possible errors using software tools.
Test pit samples taken during the course of the fieldwork were sent to the MGB
Laboratory for testing. A Report on Analysis of the said samples was completed
and provided to the undersigned.

From the foregoing discussions, it may be concluded that the declaration of the
mineral resources of Citinickel in the Narra and Española Project is deemed
acceptable.

MARCELO M. ALILIO ALLAN E. TALAG
Engineer IV Engineer II

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REFERENCES
Questionnaires and Checklist on Mineral Resource and Ore Reserve
Validation, MGB, October 2007.

Resource Study, Palawan Properties-Resource Estimation, Appendix A,
September 1996.

Independent Consulting Geologist’s Report, Citinickel Mines and
Development Corporation, July 2007

Waldpole, R.E., Introduction to Statistics, 3rd Edition,

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APPENDIX 1
LIST OF TEST PITS
VERIFIED BY THE MGB

Pulot, S. Española
Samples Easting Northing
P001 605249 1002128
P002 605303 1002135
P003 605353 1002143
P004 605398 1002153
P005 605448 1002132
P006 605413 1002231
P007 605458 1002274
P008 605560 1002782
P009 605607 1002797
P010 605655 1002811

Toronto, Narra
Samples Latitude Longitude
TP-1 9.222388889 118.27425
TP-2 9.222166667 118.2735
TP-3 9.222027778 118.2726667
TP-4 9.221416667 118.2716389
TP-5 9.221333333 118.2698889
TP-6 9.22125 118.2709444

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APPENDIX 2
TOPOGRAPHIC MAP OF THE PULOT PROJECT SHOWING TEST PITS
LOCATIONS

17


APPENDIX 3
TOPOGRAPHIC MAP OF TORONTO PROJECT
SHOWING TEST PITS LOCATIONS

18


APPENDIX 4
COMPARISON OF THE NICKEL ANALYSIS REPORT BETWEEN CITINICKEL
AND MGB PULOT AREA

MGB SAMPLES CITINICKLE SAMPLES VARIANCE (d) MGB-CITINICKLE DIFFERENCE SQUARED
SAMPLES %Fe %Ni %Co HoleID %Fe %Ni %Co Fe Ni Co Fe Ni Co
P002 41.64 1.28 0.089 TP6A-4.5 50.50 1.14 0.08 8.86 -0.14 -0.01 78.4996 0.0196 8.1E-05
P003 49.77 1.13 0.069 TP6A-3.5 49.40 1.04 0.11 -0.37 -0.09 0.04 0.1369 0.0081 0.001681
P004 48.24 1.11 0.1 TP6A-3 51.30 0.97 0.10 3.06 -0.14 0.00 9.3636 0.0196 0
P005 49.77 1.12 0.032 TP6A-2.5 50.10 0.73 0.07 0.33 -0.39 0.04 0.1089 0.1521 0.001444
P006 46.21 1.14 0.056 TP7A-3 50.60 1.04 0.09 4.39 -0.10 0.03 19.2721 0.01 0.001156
P007 44.18 1.08 0.069 TP7.5A-2.5 48.70 1.01 0.12 4.52 -0.07 0.05 20.4304 0.0049 0.002601
P009 33.01 1.51 0.067 TP13A-1.5 27.50 2.18 0.06 -5.51 0.67 -0.01 30.3601 0.4489 4.9E-05
P010 37.07 1.7 0.071 TP13A-0.5 10.40 1.20 0.02 -26.67 -0.50 -0.05 711.2889 0.25 0.002601

Count 8 8 8
SUM -11.39 -0.76 0.10 869.46 0.91 0.01
MEAN -1.42 -0.10 0.01
SD 11.04047 0.346616 0.034717
t-
Test 0.726071 0.463594 0.35614

t -Test Analysis for Nickel

* Using the Formula of t-Test involving Paired Observation:

d__
t (calculated) = Sd ; Sd = ∑d2 — [ (∑d )2 / n ] ; d = ∑d
√n n-1 n
Where :
d is the mean difference between paired observations
Sd is the standard deviation of the difference between paired observations
n is the number of paired observation
Solution:
d = -0.70
Sd = 0.346616
t(calculated) = 0.463594

at 95% Level of Confidence:
t(tabular) = 1.721

Conclusion: since t (calculated) < t(tabular) , the difference between the analysis of
Nickel for CNMDC and MGB is not significant

19


APPENDIX 5
COMPARISON OF THE NICKLE ANALYSIS REPORT BETWEEN CITINICKEL
AND MGB TORONTO AREA
MGB SAMPLES CITINICKLE SAMPLES VARIANCE (d) MGB-CITINICKLE DIFFERENCE SQUARED
Depth
SAMPLES (m) %Fe %Ni %Co HOLE ID %Fe %Ni %Co Fe Ni Co Fe Ni Co
TP-1 1 27.93 1.14 0.049 19-R-4 50.1 0.75 0.1 22.17 -0.39 0.051 491.5089 0.1521 0.002601
TP-3 3 20.56 1.5 0.052 18.5R-6.0 17.2 1.32 0.04 -3.36 -0.18 -0.012 11.2896 0.0324 0.000144
TP-4 3 14.9 1.11 0.025 17.75R-7.25 25.2 1.67 0.11 10.3 0.56 0.085 106.09 0.3136 0.007225
TP-4 4 11.17 1.42 0.024 17.75R-7.25 10.5 2.21 0.03 -0.67 0.79 0.006 0.4489 0.6241 0.000036
TP-5 3 49.26 1.01 0.12 17.75R-9.25 17.2 2.69 0.04 -32.06 1.68 -0.08 1027.844 2.8224 0.0064
TP-5 4 39.15 1.48 0.17 17.75R-9.25 10.2 2.23 0.02 -28.95 0.75 -0.15 838.1025 0.5625 0.0225
TP-5 5 10.83 2.68 0.1 17.75R-9.25 10.5 1.76 0.02 -0.33 -0.92 -0.08 0.1089 0.8464 0.0064

SUM -32.9 2.29 -0.18 2475.392 5.3535 0.045306
MEAN -4.7 0.327143 -0.02571
SD 19.66707 0.876008 0.082338
t-
Test 0.550524 0.361283 0.440263

t -Test Analysis for Nickel

* Using the Formula of t-Test involving Paired Observation:

d__
t (calculated) = Sd ; Sd = ∑d2 — [ (∑d )2 / n ] ; d = ∑d
√n n-1 n
Where :
d is the mean difference between paired observations
Sd is the standard deviation of the difference between paired observations
n is the number of paired observation
Solution:
d = 0.327143
Sd = 0.876008
t(calculated) = 0.361283
at 95% Level of Confidence:
t(tabular) = 1.721

Conclusion: since t (calculated) < t(tabular) , the difference between the analysis of
Nickel for CNMDC and MGB is not significant

rd
* Critical Values of the t Distribution, R.E. Waldpole, Introduction to Statistics, 3 Edition

20


APPENDIX 6
MGB Report of Analysis for Samples taken during the fieldwork at the
Project Area (See attachment)

APPENDIX 7
PICTURES FROM FIELDWORK

Engr. Vicente Pulvenar and M. Alilio supervising the
retrieval of test pit sample

M. Alilio instructing laborer how to retrieve
samples.

21


Garnierite / Saprolite outcrop

Test Pit sampling

22

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