NI 43-101
TECHNICAL REPORT
ON THE
GÜMÜŞHANE EXPLORATION PROJECT
TURKEY
For
ASLANAY MINING
By
Robert M. Allender, Jr., CPG, RG
Phoenix, Arizona, USA
TECHNICAL REPORT
R.M.Allender, Jr.,CPG, RG
Report No. 12-28
Effective Date: September 27, 2012
Signing Date:
NI43-101 Gümüşhane Project Technical Report
Page 1
NOTICE
This report was prepared as a Canadian National Instrument 43-101 Technical Report, in
accordance with Form 43-101F1, for Aslanay Mining (“Aslanay”) by Robert M. Allender, Jr.
(“Author”). The quality of information, conclusions and estimates contained herein is consistent
with the level of effort described in the agreement between Aslanay and Author and based on: i)
information available at the time of preparation, ii) data supplied by Aslanay and other outside
sources, and iii) the assumptions, conditions, and qualifications set forth in this report. This
report is intended to be used by Aslanay, subject to the terms and conditions of its contract with
Author. This contract permits Aslanay to file this report as a Technical Report with Canadian
Securities Regulatory Authorities pursuant to National Instrument 43-101, Standards of
Disclosure for Mineral Projects and with the United States Securities Exchange Commission
pursuant to Guide 7, Description of Property by Issuers Engaged or to be Engaged in Significant
Mining Operations. Any other use of this report by any third party is at that party’s sole risk.
NI43-101 Gümüşhane Project Technical Report
Page 2
TECHNICAL REPORT
ON THE
GÜMÜŞHANE EXPLORATION PROJECT,
TURKEY
TABLE OF CONTENTS
CONTENTS
PAGE
Title Page
1
Notice
2
Date and Signature Page
5
Table of Contents
3
Item 1:
Summary
6
Item 2:
Introduction
7
Item 3:
Reliance on Other Experts
7
Item 4:
Property Description and Location
8
Item 5:
Accessibility, Climate, Local Resources, Infrastructure and Physiography
12
Item 6:
History
13
Item 7:
Geological Setting and Mineralization
13
Item 8:
Deposit Types
17
Item 9:
Exploration
17
Item 10: Drilling
18
Item 11: Sample Preparation, Analyses and Security
18
Item 12: Data Verification
19
Item 13: Mineral Processing and Metallurgical Testing
19
Item 14: Mineral Resource Estimates
19
Item 15: Mineral Reserve Estimates
19
Item 16: Mining Methods
19
Item 17: Recovery Methods
19
Item 18: Project Infrastructure
19
Item 19: Market Studies and Contracts
19
Item 20: Environmental Studies, Permitting and Social or Community Impact
19
Item 21: Capital and Operating Costs
19
Item 22: Economic Analysis
19
Item 23: Adjacent Properties
19
Item 24: Other Relevant Data and Information
19
Item 25: Interpretation and Conclusions
20
Item 26: Recommendations
20
Item 27: References
21
Appendix: Havadan License Documents
22
NI43-101 Gümüşhane Project Technical Report
Page 3
TABLE OF CONTENTS - CONTINUED
FIGURES
PAGE
1
Reference Map of Turkey
7
2
Gümüşhane Province Location Map
8
3
Gümüşhane Project Location Map
10
4
Gümüşhane Licenses Location and Topographic Map
11
5
General tectonics of Turkey
13
6
Plate Tectonic Features of Turkey
14
7
Geologic Map and Sections, Gümüşhane Licenses
16
TABLES
PAGE
1
Aslanay Mining Gümüşhane License s
8
2
Gümüşhane Project Selected Analytical Results
18
NI43-101 Gümüşhane Project Technical Report
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CERTIFICATE OF QUALIFIED PERSON
Robert M. Allender, Jr. Certified Professional Geologist (07475)
I, Robert M. Allender, CPG, residing at 5730 East Windrose Drive, Scottsdale, Arizona, USA do
hereby certify that:
1. I am an independent geological consultant contracted by Aslanay Mining;
2. I am a graduate of Colorado State University with a Bachelor of Science degree in Geology
(1978);
3. I am a geological consultant and currently a Certified Professional Geologist (CPG #07475)
by the American Institute of Professional Geologists (AIPG);
4. I have worked as a geologist for a total of 34 years since obtaining my B.Sc. degree;
5. I am responsible for all sections of this technical report entitled “Technical Report on the
Gümüşhane Exploration Project, Turkey for Aslanay Mining” and dated September 27, 2012;
6. I visited the Gümüşhane property on June 2 and 5, 2012;
7. I have had no prior involvement with the Gümüşhane Property that is the subject of this
Technical Report;
8. As of the date of this certificate, to the best of my knowledge, information and belief, the
technical report contains all scientific and technical information that is required to be disclosed to
make the technical report not misleading;
9. I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-
101) and certify that by reason of my education and past relevant work experience, I fulfill the
requirements to be a “qualified person” for the purposes of NI 43-101. This report is based on
my personal review of information provided by the Issuer and on discussions with the Issuer’s
representatives;
10. I am independent of the issuer applying the test in Section 1.4 of NI 43-101;
11. I have read NI 43-101 and Form 43-101F1 and the Report has been prepared in compliance
therewith;
Effective Date: September 27, 2012
Signing Date:
{SIGNED AND SEALED}
_______________________________
Robert M. Allender, Jr.
NI43-101 Gümüşhane Project Technical Report
Page 5
Item 1:
Executive Summary
Robert M. Allender, Jr. ("Author") was retained by Aslanay Mining, Industry, and Trade Limited
Company (“Aslanay Mining”) to conduct a technical review of the Gümüşhane Project
(the "Project") located in Gümüşhane Province, Turkey and prepare a National Instrument 43-
101 ("NI 43-101") Technical Report. For the purposes of this report, the Author (a Certified
Professional Geologist and Qualified Person) visited the Gümüşhane Project on June 2 and June
5, 2012. The Author also reviewed all available technical information and collected sample of
geologic materials from the site for laboratory analysis.
The Gumushane project is located in the Merkez District, Gümüşhane Province, Northeastern
Anatolia, Turkey about 65 kilometers south of the major Black Sea port of Trabzon. Aslanay
holds two Group 4 exploration licenses on 343.83 hectares approximately ten kilometers
southwest of the town of Gümüşhane. The Group 4 licenses allow Aslanay to explore for and
develop metallic minerals on the licensed area. While there is no apparent historical metal
mining on or near the Project, Gümüşhane has been the center of an historic and extensive
precious and base metal mining region since before Roman times. The town and province derive
their name from the silver (“gümüş” in Turkish) that was historically produced in the area.
The Gümüşhane Project is located within the Eastern Black Sea tectonic region in what is called
the Eastern Pontides province in northeastern Turkey. The Eastern Pontides form part of the
Tethyan metallogenic belt. This belt of highly deformed and mineralized rocks is one of the
world's significant gold and copper bearing belts and extends from Pakistan to the Balkans
through Iran, Azerbaijan, Georgia and Turkey. The Eastern Pontides province has a high level of
geological potential for three major styles of mineralization. Current advanced-exploration
projects and producing mines in the area represent porphyry-style copper-gold deposits,
volcanic-hosted massive sulfides (“VMS”) base/precious metal deposits, and both high-
sulphidation and low-sulphidation epithermal gold-silver deposits.
The Project is in the early exploration stage and Aslanay is in the first phase of exploratory work.
Preliminary sampling by the Author and by Aslanay indicate the presence of metallic mineral
enrichment on the surface in the western portion of the Gumushane No.2 block. This enrichment
is located within an extensive alteration zone that exhibits the characteristics of more deeply
seated metallic deposits. Copper-bearing barite veins on the surface in this area were found to be
anomalous in copper, silver, mercury, antimony, barium, and thallium. One sample contained
0.67% copper and 87.39 grams per tonne silver. These elevated concentrations are typically
indicative of metallic mineralization at depth. Further investigations and study will be necessary
to identify the nature and extent of the mineralized rock mass.
Given the potential for mineral deposits in the area, Aslanay is preparing to conduct detailed
exploration activities on the license area. The Author is recommending detailed geologic
mapping and analysis, geochemical sampling and analysis, geophysical investigations, remote
sensing data acquisition and analysis, and exploration drilling. The initial drilling program will
focus on targets identified based on the results of the mapping, geochemistry and geophysics
testing, and the remote sensing analysis.
NI43-101 Gümüşhane Project Technical Report
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Item 2:
Introduction
This technical report has been commissioned by and prepared for Aslanay Mining, Industry, and
Trade Limited Company (Aslanay Mining) with an address at Emirhan Caddesi, Naki Cendere
Apt. No. 88/4, Besiktas, Istanbul, Turkey. Aslanay Mining is the Turkish entity that holds the
Gümüşhane licenses, Aslanay is a wholly owned subsidiary of TCMI Mining and Minerals, Inc.
This report has been prepared for the purpose of summarizing all available information regarding
the property and providing a baseline of technical and exploration information from which
further examinations and exploration may be commenced.
Information regarding the Gümüşhane
property has been provided by Aslanay
Mining.
Technical information
describing the geology and mineral
deposits in the area of the Gümüşhane
property has come from the preliminary
report prepared by Aslanay in
fulfillment of requirements to obtain the
exploration licenses for the property
(Yazici,2012). Technical information
specific to the Gümüşhane properties is
generally scarce. Preliminary geologic
maps of the area were obtained from the
General Directorate of Mineral Research
Figure 1. Reference Map of Turkey
and Exploration (commonly called the
MTA). All published material utilized in
the preparation of this report are listed in the Reference section at the end of this report. A
personal inspection of the property was conducted by the Author, on Saturday, June 2, 2012 and
on Tuesday, June 5, 2012.
Item 3:
Reliance on Other Experts
The Author has relied, and believes that he has a reasonable basis to rely, upon Dr. Salih
Bayraktutan, Ph.D. geologist, Exploration Manager of Aslanay who has contributed much of the
geological and mineralization information regarding the Gümüşhane Property. The Author has
also relied upon the legal, environmental, permitting, and business information provided by
Aslanay Mining that has been reviewed by the author and included in this report.
Although copies of the exploration licenses and the preliminary survey reports prepared by
Aslanay were reviewed, an independent verification of land title and tenure was not performed.
The author has not verified the legality of any underlying agreement(s) that may exist concerning
the licenses or other agreement(s) between third parties.
A draft copy of the report has been reviewed for factual errors by Aslanay. Any edits or revisions
made as a result of this review did not involve any alteration to the conclusions made. Hence, the
NI43-101 Gümüşhane Project Technical Report
Page 7
statement and opinions expressed in this document are given in good faith and in the belief that
such statements and opinions are not false and misleading at the date of this report.
Item 4: Property Description and Location
The subject property lies in the Gümüşhane Province (Figure 2), Merkez District approximately
10 kilometers west-southwest of the town of Gümüşhane in northeastern Turkey. The property
blocks are situated along the southern edge of the Dortkonak Upland between the villages of
Aksu (southeast), Ҫamli (east), and Dortkonak (northeast). The location and topography of both
property blocks is shown in Figure 3. Location
and topography of the two license blocks are
shown in Figure 4.
Gümüşhane Block No. 1 is located on a
relative flat highland on the western flank of
Terek Hill. Topographic relief on the block is
low ranging from 2,100 meters at the
northwest and southeast corners of the block to
Figure 2. Gumushane Province Location
2,260 meters on Terek Hill (elevation 2,270 meters at UTM Zone 37N, 537000E, 4475000N ) in
the northeast corner of the block. In general, the central portion of the block straddles a low
ridge that runs southwest to northeast through the block.
Gümüşhane Block No. 2 is located on Şorderenintaşi Hill (UTM coordinates 536450E,
4472750N, Zone 37; 2,175 meters elevation) one kilometer south of Gümüşhane Block No. 1.
Topographic relief on the property is high with elevations ranging from 1,600 meters in the
northeast corner of the property to 2,300 meters in the northwest corner. In general, the
topography in the immediate area of the property rises sharply to the west from the drainage
valleys to the east.
Exploration Licenses. The issuer holds two Group 4 Exploration Licenses from the Turkish
Energy and Natural Resources Ministry, General Directorate of Mining, for two separate, nearly
adjacent, blocks of ground in the Gümüşhane area. The total license area is 343.83 hectares.
License details are shown in the following table.
Table 1. Aslanay Mining Gümüşhane Licenses
Gümüşhane
License
Access
Total area
Expiration
Property
Number
Number
(hectares)
Effective Date
Date
No. 1
201200505
3287409
125.00
3 April 2012
3 April 2019
No. 2
201200564
3289062
218.83
8 May 2012
8 May 2019
A Group 4 license entitles the holder to conduct exploration and development activities on the
site and produce minerals from on-site deposits. Group 4 licenses are effective for a period of
seven years. Upon expiration of the license or completion of exploration and resource
NI43-101 Gümüşhane Project Technical Report
Page 8
development a production license may be obtained by application to the Ministry. Production
licenses have a term of 10 years which may be extended for an additional 10 year period.
Further conditions under this license type require a Pre-Exploration period of one year, a
General Exploration period with a term of two years and a Detailed Exploration period of four
years duration.
The Pre-Exploration period is devoted to the collection and analysis of surface rock and
geochemical samples, geophysical investigations, remote sensing data acquisition and
interpretation, and other preliminary investigations designed to determine if further exploratory
work is warranted. The focus of these investigations is to identify possible mineral deposits on
the subject property.
If the results of the Pre-Exploration investigations identify targets warranting further testing then
the General Exploration period may be commenced. This period involves more detailed and
extensive investigations into the geology and mineral deposits on the property. Activities during
this phase of exploration could include topographic mapping, detailed geologic and mineral
deposit mapping, drilling, resource identification and estimation, reserve identification and
estimation, deposit modeling, preliminary economic evaluations, and preliminary mining
engineering studies designed to evaluate the potential feasibility of mining any discovered
deposits.
The Detailed Exploration period may include the refinement and detailed extension of some or
all of the activities undertaken during the General Exploration phase in addition to technical and
economic studies that might lead to mine development and production.
NI43-101 Gümüşhane Project Technical Report
Page 9
- 4472750
N ^
Figure 3.
Gümüşhane
Datum European 1950
Project Location
UTM Zone 37N
Map
NI43-101 Gümüşhane Project Technical Report
Page 10
N ^
Datum European 1950
UTM Zone 37N
Figure 4.
Gumushane Licenses
Location and
Map prepared by
Topographic Map
Aslanay Mining
NI43-101 Gümüşhane Project Technical Report
Page 11
Royalties. The Government of Turkey retains the right to a royalty on all mineral production.
The Group 4 category comprises all industrial and metallic minerals including base and precious
metals which are the subject of the exploration licenses for the Gümüşhane properties. The
government royalty amount on Group 4 production is 4%. This amount is reduced by half to 2%
if the issuer constructs and operates a processing plant in Turkey for purposes of processing its
own ore.
The Gümüşhane No. 1 property was acquired from a private owner. Details of the transaction
are not known by the author. According to Aslanay, no royalty is retained by the previous owner
to any production from the property block.
The Gümüşhane No. 2 property was acquired at Government auction in February 2012. Other
details of the acquisition are not known by the author. The royalty retained by the Government is
as discussed above.
Environmental Permits and Liabilities. As far as is known by the author, there are no known
environmental liabilities on either Gümüşhane property block at this time. Since part of the
property is forested, a permit will be required to conduct exploration drilling on the property.
This permit may be secured by application to the Ministry of Environment and Forestry and
efforts in the regard are currently underway by Aslanay.
Item 5:
Accessibility, Climate, Local Resources, Infrastructure and Physiography
The subject property is located approximately 10 kilometers from the urban center at
Gümüşhane, Turkey. Gümüşhane is surrounded by mountain ranges including, the Zigana-
Trabzon Mountains to the north, the Çimen Mountains to the south, the Giresun Mountains to the
west, and the Pulur - Soğanli Mountains to the east. Access to Gümüşhane is possible year round
over a well-traveled and maintained paved road from Trabzon which is 65 kilometers to the
north of Gümüşhane.
Access to the properties is on gravel roads from the main paved highway that runs through the
center of Gümüşhane. The roads appear well maintained at least in the summer months. Wet
weather, however, renders these impassable at times, as witnessed during the site visits in June
2012. These access roads are apparently not maintained during the winter months. Year-round
access to the site will likely require significant upgrades to existing roads or new roads
altogether. Snow clearance will probably also be necessary to maintain winter access.
Gümüşhane has a humid continental climate with cold and snowy winters and hot and humid
summers. The Gümüşhane area averages approximately 461millimeters (18 inches) of
precipitation per year with April and May being the wettest months of the year with a combined
total of approximately 127 millimeters (5 inches) of presipitation. Temperatures vary from an
average high of 27 °C (80 °F) in July to an average of 2 °C (35 °F) in January. Average low
temperatures range from 13°C (55 °F) in July to -5 °C (23 °F) in January (Wikipedia). As noted
previously, winter weather and summer storms could affect access and production activities
unless an all-weather, all-season road is constructed.
Gümüşhane Block No. 1 is located on a relative flat highland on the western flank of Terek Hill.
Topographic relief on the block is low ranging from 2,100 meters at the northwest and southeast
NI43-101 Gümüşhane Project Technical Report
Page 12
corners of the block to 2,260 meters on Terek Hill (elevation 2,270 meters at UTM Zone 37N,
537000E, 4475000N ) in the northeast corner of the block. In general, the central portion of the
block straddles a ridge that runs southwest to northeast through the block. The property is rocky
and fairly completely covered with a variety of vegetation. Low grasses and alpine plants are
prevalent.
Gümüşhane Block No. 2 is located on Şorderenintaşi Hill (UTM coordinates 536450E,
4472750N, Zone 37N; 2,175 meters elevation) one kilometer south of Gümüşhane Block No. 1.
Topographic relief on the property is high with elevations ranging from 1,600 meters in the
northeast corner of the property to 2,300 meters in the northwest corner. In general, the
topography in the immediate area of the property rises sharply to the west from the drainage
valleys to the east. The property is heavily wooded in places with pine, fir, oak, and aspen trees
and is generally vegetated with low grasses and alpine plants in the steep, rocky areas of the site.
The property package of two separate but proximal blocks is sufficiently large to accommodate
exploration, development, and limited mining activities depending on the possible extent of
mineral deposits discovered. Power is available locally in the form of a high voltage over-head
line that traverses the area immediately adjacent to the Gümüşhane No. 2 block. Limited
quantities of surface water may be available to mining operations, however, groundwater
resources are apparently very limited in this mountaintop area (Tudes and Ceryan, 2006). The
underlying carbonate, volcanic, and granitic rocks are apparently poor aquifers. There are areas
available on the sites and on adjacent lands that could potentially accommodate waste and
tailings disposal. Potential processing plant sites are also available.
Item 6:
History
The Gümüşhane No. 1 property was acquired from a Murat Nebioglu of Trabzon in April, 2012.
Nebioglu had produced some coal from the property in the recent past and had conducted some
exploration drilling for coal on the block. The license was transferred to Aslanay and a new
Exploration License issued to Aslanay on April 30, 2012. The Gümüşhane No. 2 block was
acquired through government auction in early May 2012 and the Exploration License was issued
to Aslanay on May 8, 2012.
Item 7:
Geological Setting and Mineralization
Regional Geologic Setting.
The Gümüşhane property is located within the Eastern Black
Sea tectonic region. It is further located in the Eastern
Pontides volcanic province in northeastern Turkey, which
forms part of the Tethyan metallogenic belt. This belt of
deformed and mineralized rocks is one of the world's
Figure 5. General Tectonics of Turkey
significant gold and copper bearing belts and extends from
Pakistan to the Balkans through Iran, Azerbaijan, Georgia and Turkey. The regional tectonic
setting is shown in Figures 5 and 6.
The Eastern Pontides province has a high level of geological potential for three major styles of
mineralization:
NI43-101 Gümüşhane Project Technical Report
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porphyry-style copper-gold deposits;
volcanic-hosted massive sulphides (“VMS”) base/precious metal deposits;
and both high-sulphidation and low-sulphidation epithermal gold-silver deposits.
The major operating mines within the Tethyan Tectonic Belt contain porphyry copper deposits
that are some of the largest sources of copper in the world and also yield significant quantities of
gold and molybdenum. The Eastern Pontides province contains numerous historically mined
deposits (e.g.Giresan-Lahanos, an underground copper mine owned by Demir Export AS),
advanced projects (e.g. Altintepe, a high-sulfidation epithermal deposit owned by Stratex
International), and currently producing mines (e.g. Cayeli, Murgul and Mastra). Cayeli is a
significant VMS deposit with reserves of 9.0 million tonnes at 3.2% copper, 4.3% zinc, 0.5g/t
gold and 41g/t silver (Inmet Mining 2011 annual report); Murgul with resources of 80 million
tonnes at 1.1% copper; and Cerateppe (Teck Resources, Ltd.) with reserves of 1.6 million tonnes
at 8.8% copper, 1.1% zinc, 1.4g/t gold and 33g/t silver. The Mastra Gold Mine (KEFI Minerals),
developed on a low sulphidation epithermal vein system, has reserves of 0.87 million tonnes at
9.8g/t gold and 5.3g/t silver.
The major lithologic units in this region
are representative of Paleozoic-Lower
Mesozoic granitic intrusions, Jurassic
volcanism, Cretaceous limestone, and
Lower Tertiary calc-alkalic island arc
volcanism.
The structural geology of the province is
highly complex. Intense tectonic activity
related to the collision of several crustal
plates in this area of the Middle East and
Figure 6. Plate tectonic features of Turkey
Europe has resulted in the development of
large, active faults and suture zones as
well as extensive volcanism and deformation.
Characteristics of the lithologic units outcropping in the Gumushane District are summarized as
follows from the oldest to the youngest in stratigraphic order.
The oldest rocks in the area are Upper Paleozoic Gümüşhane Granitoids. This formation covers
vast areas in the Eastern Black Sea region. It forms the deep foundation of the Gümüşhane
Mountains. Compositions vary and include granodiorite, quartz diorite and similar rocks. Large
holocrystalline, phaneritic texture and massive structure is dominant.
Jurassic volcanic rocks outcrop on broad areas of the Gümüşhane District. These rocks represent
submarine volcanism and are characterized by lava flows and pyroclastic or agglomerate
formations. The formations consist of spilitic pillow basalts, basaltic andesite and similar rocks
These units have a semi-layered structure and a crystalline texture in dark green, black, dark
NI43-101 Gümüşhane Project Technical Report
Page 14
brown and grey colors. Pyroclastic flows (agglomerates) cover thicker and wider areas compared
with lavas. Diabase and dacitic dyke-sill networks in this unit are present in the area.
Early Cretaceous neritic limestone, precipitated in shallow coastal waters form much of the
surface terrain in the Gumushane area. It was apparently precipitated discordantly on an irregular
submarine topography developed at the beginning of Cretaceous era. This carbonate sequence is
up to 400 meters think in places. Dark grey and beige colors are dominant. Silicification of the
limestone in the form of quartz veins and flooded masses of silicified limestone are also present.
Boudinage structures have been noted in the upper layers of the limestone indicated deformation
of the unit at some time after deposition. Siltstone, mudstone, sandy limestone, and sandstone
may also be present locally as interbeds in the limestone (Yilmaz, et al, 2008).
The second largest volcanism in Gümüşhane region is represented by Middle-Upper Eocene
andesitic volcanic rocks They form the surface on broad areas in the north Gümüşhane District.
This unit consists of lava and pyroclastic flows (agglomerate) with compositions ranging through
andesite, basaltic andesite, trachyte-andesite, and trachyte. This volcanic complex is
characteristic of island arc volcanism with a calc-alkaline geochemistry.
There are areas of Pliocene-age lake and stream sedimentary formations throughout the district.
These are relative small in areal extent. Coal and petrified wood are present in some of these
sediments.
Quaternary alluvium fills most of the valley floors in the District and represents the youngest
geologic units in the region.
Property Geology.
A preliminary geologic map of the project area is shown in Figure 8. Upper Paleozoic
Gümüşhane Granite and associated granitoids outcrop over most of the western portion of the
Gümüşhane No.2 block. It occurs at lower elevations south and east of the property and
composes most of the lower slopes in the drainage valleys to the south. Locally the unit is grey
to brown colored intrusive with a massive structure that has been intensely altered. It’s joint and
fracture system has been completely intruded and filled by silica. Advanced alteration or
kaolination has occurred in the component feldspars.
Unaltered, reasonable fresh Gümüşhane Granite crops out beneath the highly altered granitoid
and volcanics in which the sampled, copper-bearing barite alteration zone is located. This granite
is pink in many places owing to the high potassium feldspar content of the rock.
The Jurassic volcanic complex forms the foundation underlying most of both blocks of the
property. Andesite is the dominant composition. Andesite, basaltic andesite, trachytic andesite
are local composition variations. Lava and pyroclastic flows of this compositional character are
the dominant rock types of this formation. Silica and clay alteration has developed in parallel
with the fracture system.
NI43-101 Gümüşhane Project Technical Report
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LEGEND
SYMBOLS
Figure 7. Geologic Map and Sections, Gümüşhane Project
These two older units – granite/granitoid and volcanics - form the foundation underlying the site.
Younger rocks composed of Cretaceous neritic limestone and Pliocene detrital sediments
dominate the relatively flat topography in the upper elevations of the property. The contact
between the limestone and underlying volcanics and intrusives appears to be unconformable and
may be the result of tectonics.
Mineralization.
The Gümüşhane property and the surrounding region lie within the Eastern Black Sea or Eastern
Pontides metallogenic zone that extends from Ordu through Giresan and Gümüşhane eastward to
Artvin . This structurally-controlled zone of magmatic, volcanic and metamorphic activity is ripe
for mineral deposit development and is one of the richest regions in Turkey in terms of metallic
mineral deposits (Taylor, et al, 2009). Geologic and structural conditions are conducive to the
development of porphyritic disseminated deposits (Guilbert and Park, 1986), epithermal vein
deposits (Demir, et al, 2008), and volcanogenic massive sulfide deposits (Mosier, et al, 2009), all
of which occur at numerous locations in the Eastern Black Sea Region and specifically in the
NI43-101 Gümüşhane Project Technical Report
Page 16
Gümüşhane area. The Paleozoic Rize Batholith (granite and granitoids) is the conjectured source
for mineralizing fluids in the region.
Item 8:
Deposit Types
Three types of metalliferous deposits are indicated by the property location within the Eastern
Pontides metallogenic belt as well as field observations and the random sampling of selected
locations within the property. Alteration types and patterns may indicate the presence of
disseminated porphyry-style mineralization at depth. Extensive clay alteration and the presence
of supergene copper minerals in barite veins on the surface indicate the presence of an
epithermal mineral deposit at depth below the property. Observed secondary copper-silver
enrichment at the surface may be an indication of a near surface enriched copper-silver deposit
and a more complex disseminated porphyry copper-gold mineralization at depth. The presence
of carbonate rocks on the surface in close proximity to altered volcanic rocks and intrusive
granitic rocks also suggest the possibility of skarn-type copper-lead-zinc-gold-silver deposits
underlying the properties and more extensive VMS deposits.
The sequence of Piocene sedimentary rocks present on the surface throughout the Gumushane
No. 1 block contains a section of thin coal seams interbedded with carbonaceous shales beds.
The coal sections appears to be about two meters thick. This coal section is contained within an
island of detrital sediments surrounded by older silicified limestone, and volcanic rocks. Analysis
of the heat content of the coal section indicates that the entire zone is of lignite quality with low
caloric value.
Item 9:
Exploration
Little exploration work has been completed on the Gümüşhane properties. Several site visits of
limited duration have been conducted and random surface outcrop samples have been collected
and analyzed in the laboratory. These sample results are not representative of mineral deposits
on the property rather they are indications of the potential for mineral deposits,
Collected samples are of the random, grab sample type and were not expected to be
representative. Sampling was accomplished in order to identify potential mineralized rock and
determine whether further investigations on the property were warranted.
The author collected seven (7) samples from outcrop areas and road cut exposures during the site
visits in June 2012. These were random grab samples of rock that exhibited potential for base
and/or precious metal mineralization. These were intended as pre-exploration samples to
determine whether the site warranted further more detailed exploration. As such, these are not
representative samples and no field QA/QC procedures were implemented during this phase of
pre-exploration. The laboratory did, however, employ standard QA/QC methods.
The area sampled along the western end of Gümüşhane No. 2 returned interesting and anomalous
results from the metals analysis. Selected results of sample analysis are shown in Table 2.
NI43-101 Gümüşhane Project Technical Report
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Table 2. Selected Analytical Results for Preliminary Evaluation Sampling, Gumushane No. 2
Analyte Mo
Cu
Pb
Zn
Ag Mn Fe
As
Au
Tl
Ba
Hg
Sb
Ca
Units
ppm
ppm
ppm
ppm
ppb
ppm
%
ppm
ppb
ppm
ppm
ppb
ppm
%
MDL
0.01
0.01
0.01
0.1
2
1
0.01
0.1
0.2
0.02
0.5
5
0.02
0.01
809422
0.07
0.62
18.88
36.3
11
215
1.17
1.4
<0.2
0.04
17.8
6
0.22
0.09
809423
0.26
3.86
26.75
52.4
57
404
2.46
1.4
<0.2
<.02
67
8
0.19
0.56
809424
1.49
1.07
26.19
37.3
37
262
1.48
1.7
0.3
0.04
89.9
45
0.33
0.06
809425
0.42
6718
600.7
629.6
87389
11
0.46
2863
<0.2
0.11
200.6
>50,000
278.7
0.13
809426
17.28
19.64
95.04
22.8
656
14
0.19
18.6
<0.2
0.13
2438
317
3.61
0.11
809429
0.09
94.02
4.08
84.1
9
896
4.54
5.6
2.2
0.18
2808
470
0.32
4.08
809430
0.59
1.59
1.14
8
10
84
0.17
1.1
<0.2
<.02
3.9
11
0.14
26.47
Sample 809425 (collected at UTM coordinates 4472600N and 536120E at an elevation of 2260
meters) was composed of rock fragments from a shear zone in the road cut at this location. The
rock was a white, intensely hydrothermally altered zone containing supergene copper minerals in
what appeared to barite veinlets on the surface. This type of alteration zone and secondary
enrichment of copper with barite could be indicative of a copper-silver enrichment zone on the
surface overlying a porphyritic, disseminated mineralized mass or epithermal mineralization at
depth. This sample was anomalous for copper (0.67%) and silver (87.39 grams per tonne or 2.8
ounces per ton). Barium, antimony, and thallium concentrations are anomalous as is the high
mercury concentration in this sample. These are indicative of the geochemical signature for
buried mineralization.
Other samples collected in the same road cut over several hundred meters (running from
northeast to southwest) from similar altered rocks showed elevated concentrations of copper and
silver. Elevated gold concentrations were found in samples 809424 and 809429 of 0.3 ppb and
0.9 ppb respectively. Samples 809426 and 809429 returned elevated silver concentrations of
0.66 grams per tonne and 0.39 grams per tonne respectively. Copper and barium concentrations
in these two samples were also anomalous. These results indicate the presence of a mineralized
rock mass and certainly warrant further investigations.
Item 10: Drilling
No documented drilling has been complete on either portion of the Gümüşhane property. There
is, however, evidence in the form of debris and cuttings on site of drilling on Gümüşhane #1
apparently exploring for coal in the Pliocene sedimentary rock sequence. However, no drilling
report, drillhole logs or any other documentation is available for this drilling.
Item 11: Sample Preparation, Analyses and Security
Samples were collected and prepared for shipment by the Author/Qualified Person. The samples
were shipped to Acme Laboratories in Ankara under chain-of-custody procedures. The
laboratory in Ankara prepared the samples and packaged them for shipment to Acme
Laboratories in Vancouver, British Columbia, Canada for chemical analysis and report
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preparation. Samples were digested using Aqua Regia solution and then analysed for ultratrace
element concentrations by ICP-MS method. Standard laboratory QA/QC methods were
employed.
Sample collection, preparation, security, analytical procedures and QA/QC procedures are
adequate at this stage of exploration and development. A suitable data management and QA/QC
program need to be developed for subsequent phases of exploration.
Item 12: Data Verification
This item is not relevant at this time given the stage of property development and exploration
since no data has been generated.
Item 13: Mineral Processing and Metallurgical Testing
No testing of this nature has yet been initiated for the Gümüşhane properties.
Item 14: Mineral Resource Estimates
The properties are in an early exploration phase. As such, no mineral resource estimates are
possible or warranted at this time.
Items 15 through 22 are not relevant at this stage of property development and are
reserved for additional requirements for advanced property technical reports as the
Gümüşhane property develops.
Item 15: Mineral Reserve Estimates
Item 16: Mining Methods
Item 17: Recovery Methods
Item 18: Project Infrastructure
Item 19: Market Studies and Contracts
Item 20: Environmental Studies, Permitting and Social or Community Impact
Item 21: Capital and Operating Costs
Item 22: Economic Analysis
Item 23: Adjacent Properties
No relevant information concerning exploration, mineralization, or mining on any adjacent
property was found or made available.
Item 24: Other Relevant Data and Information
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Include any additional information or explanation necessary to make the technical report
understandable and not misleading.
Item 25: Interpretation and Conclusions
The results of the limited pre-exploration phase work on the Gümüşhane property are
encouraging. Additional more detailed and invasive exploration techniques are warranted given
the results of the limited sampling and analysis at Gümüşhane. Remote sensing, geophysical and
geochemical investigations, and ultimately drilling of identified targets have reasonable potential
to identify mineralized rocks in the Gümüşhane property and may identify mineral deposits and
eventually ore deposits on site.
This is an early stage exploration target. As such, the risks of pursuing this type of project are
high. Exploration expenditures and implementations could lead to the conclusion that no mineral
resource or reserve exists on the site. As with any project of this type, the potential return on
investment could be great. On the other hand, the risk of losing part or all of the invested funds
is also great.
Item 26: Recommendations
The Author recommends a phased approach to evaluation of the Gümüşhane Property for
further development. The first phase corresponds to the Pre-Exploration and part of the General
Exploration terms as specified by exploration license requirements.
1. Geologic mapping; Complete a detailed geologic map of the properties and surrounding
area at 1:1,000 scale.
2. Geochemical sampling and analysis over the entire #2 block to delineate the mineralized
alteration zone observed on the surface and identify possible drilling targets for the next
phase of exploration.
3. Geophysical investigations: Conduct airborne and surface magnetic and electromagnetic
surveys of the property blocks to identify metallic targets for possible future drilling.
4. Remote sensing analysis: Conduct an analysis of satellite and other remote sensing data
to delineate rock types and areas of hydrothermal alteration that could guide further
exploration and drilling.
The second phase would include an initial drilling program, dictated by positive results of the
first phase investigation. Additional phases of drilling could follow upon positive results of the
initial program.
5. Drilling: Design and implement an exploration drilling program to test any targets
indentified during geochemical, geophysical, and remote sensing investigations.
6. Additional drilling phases to delineate any discovered mineral deposits.
7. Develop resources and reserves, if feasible.
NI43-101 Gümüşhane Project Technical Report
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Item 27: References
Demir, Y., Uysal, I., Sadiklar, M.B., and Sipahi, F., 2008. Mineralogy, Mineral Chemistry, and
Fluid Inclusion Investigation of Kostere Hydrothermal Vein-type Deposit, Gumushane,
Northeast Turkey: European Journal of Mineralogy, Vol. 185/2, p. 215–232, Stuttgart,
November 2008, published online 2008.
Guilbert, J.M. and Park, Jr., C.F., 1986. The Geology of Ore Deposits, 4th edition W.H. Freeman
and Company, New York, New York, 985 pp.
KEFI Minerals website http://www.kefi-minerals.com/turkey.html accessed 9/10/2012.
Mosier, D.L., Berger, V.I., and Singer, D.A., 2009, Volcanogenic massive sulfide deposits of the
world; database and grade and tonnage models: U.S. Geological Survey Open-File Report 2009-
1034 [http://pubs.usgs.gov/of/2009/1034/].
Taylor, C.D., Schulz, K.J., Doebrich, J.L., Orris, G.J., Denning, P.D., and Kirschbaum, M.J.,
2009. Geology and nonfuel mineral deposits of Africa and the Middle East: U.S. Geological
Survey Open-File Report 2005–1294-E, 246 p.
Tudes, S. and Ceryan, S., 2006. Urban geology of Gumushane: IAEG Paper No. 832, The
Geological Society of London, 10 p.
Wikipedia contributors. "Gümüşhane." Wikipedia, The Free Encyclopedia, 31 Aug. 2005. Web.
8 Aug. 2012.
Yilmaz, C., Carannante, G., and Kandemir, R., 2008. The rift-related Late Cretaceous drowning
of the Gümüşhane carbonate platform (NE Turkey): Italian Journal of Geosciences, v. 127, no.1,
Feb. 2008, p. 37-50
Yazici, D., 2012. Preliminary survey and exploration project report, Aslanay Mining Gümüşhane
Licenses, unpublished, 18 p.
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APPENDIX
Gümüşhane Project License Documents
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NI43-101 Gümüşhane Project Technical Report
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NI43-101 Gümüşhane Project Technical Report
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