Exhibit 99.1
Review and Recommendations
Sky 1-4 Mineral Claims
Lida Quadrangle, 71/2' Map
Esmeralda County
Nevada, USA
Prepared by: Western Minerals Inc.
For: Saguaro Resources, Inc.
Dated: June 20, 2008
Table of Contents
Page
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Contents 2
Illustrations 3
0.0 Summary 4
1.0 Introduction and Terms of Reference 5
1.1 Glossary 5
2.0 Disclaimer 7
3.0 Property Description and Location 7
4.0 Accessibility, Climate, Local Resources,
Infrastructure and Physiography 8
5.0 History 9
6.0 Geological Setting
6.1 Regional Geology 10
6.2 Local Geology 10
6.3 Property Geology 10
6.4 Deposit Type 11
6.5 Mineralization 11
7.0 Exploration
7.1 Geophysics of the Sky 1-4 Mineral Claims 11
7.2 Geochemistry of the Sky 1-4 Mineral Claims 12
8.0 Drilling 12
9.0 Sampling Method and Approach 12
9.1 Results 12
2
Page
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10.0 Sample Preparation, Analyses and Security 12
11.0 Data Verification 13
12.0 Adjacent Properties 13
13.0 Mineral Processing and Metallurgical Testing 13
14.0 Mineral Resource and Mineral Reserve Estimates 13
15.0 Other Relevant Data and Information 14
16.0 Interpretation and Conclusions 14
17.0 Recommendations 14
17.1 Recommended Drilling 15
18.0 References 15
19.0 Author's Qualifications and Certification 16
Illustrations
Location
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Figure 1. Location Map, As Shown after page 4
Figure 2. Claim Area Map, As Shown after page 7
Figure 3a. Regional Geology Map, 1: 250,000 after page 9
Figure 3b. Legend to Accompany Figure 3a. after Fig. 3a.
Figure 4. Aeromagnetic Map, 1:250,000 after page 11
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0.0 Summary
The Sky 1-4 mineral claims comprise a total of 82.64 acres. Saguaro Resources,
Inc., a Delaware, U.S.A. company is the beneficial owner of the mineral claims.
The claim area is underlain by unconsolidated material comprised of and/or
desert wash, colluvium, alluvium and playa deposits of Quaternary age.
The bedrock units in the local, surrounding area appear to be of sedimentary
origin and/or their metamorphic equivalent of Upper Cambrian to Ordovician age,
volcanic rock units ranging from alkaline dioritic units to calc-alkaline
granitic units that range in age from the early Tertiary to the Pliocene. The
claim area lies near the valley bottom directly west of Mount Jackson.
The underlying rock units exhibit a subtle aeromagnetic pattern lying between
two elliptical-shaped magnetic "highs" that could indicate a response to
deformation due to structural features, such as faulting, folding and rock
alteration or a rock unit contact zone. All of the mineral claim area is drift
or overburden covered and offers exploration potential. The author feels that
the potential exists for movement of mineralizing fluids to have impregnated
these structurally prepared zones. These fluids could emanate from deeper
sources related to intrusive activity and travel along structurally prepared
conduits such as thrust faults in the underlying bedrock.
The mineral claim is favorably situated and may require geophysical surveys to
determine in more detail its potential following the initial prospecting,
mapping and reconnaissance mobile metal ion (MMI) soil geochemistry program. An
exploratory drilling program could follow the Phase 1 - 2 surveys and be
contingent upon positive results being obtained from the previous fieldwork.
The object of our initial exploration undertaking is to assess areas that may
require more detailed investigations to assist in determining their economic
significance.
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1.0 Introduction, Terms of Reference
The report of "Sky 1-4 Mineral Claims, Lida Quadrangle Area, Esmeralda County,
Nevada, USA", includes the property and surrounding geology, history, past
exploration and mineral potential. This report is being done at the request of
the Board of Directors of Saguaro Resources, Inc. The author of this report is a
Qualified Person. He is a registered Professional Geoscientist and a member in
good standing with The Association of Professional Engineers and Geoscientists
of British Columbia. The author has worked in the general area many times during
the past 37 years.
For a glossary of common geological terms used in this report it is suggested by
the author in using a computer online search engine such as "Google". Search for
"Dictionary of Earth Science Terms", then look-up the appropriate definitions.
For more specific geographic names and geological terms refer to the enclosed
definitions list in the Glossary of this report.
1.1 Glossary
(Specific to a Report on the Sky 1-4 Mineral Claims, by James W. McLeod, P.
Geo., Consulting Geologist dated June 20, 2008 on behalf of Saguaro
Resources, Inc.)
Aeromagnetic survey - a magnetic survey conducted from the air normally
using a helicopter or fixed-wing aircraft to carry the detection instrument
and the recorder.
Alluvium - unconsolidated sediments that are carried and hence deposited by
a stream or river. In the southwest USA many in filled valleys, often
between mountain ranges were deposited with alluvium.
Andesitic to basaltic composition - a range of rock descriptions using the
chemical make-up or mineral norms of the same.
Aphanitic - fine grained crystalline texture.
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Blind-basin - a basin practically closed off by enveloping rock exposures
making the central portion of unconsolidated alluvial basin isolated.
Colluvium - loose, unconsolidated material usually derived by gravitational
means, such as falling from a cliff or scarp-face and often due to a sort
of benign erosion such as heating and cooling in a desert environment.
Desert wash - out-wash in dry (desert) or arid areas of colluvium or
alluvial material accumulated on the sides of valleys or basin channels by
often irregular and violent water flow, i.e. flash floods.
Elongate basin - a longer than wide depression that could be favorable to
in-filling by material from adjacent eroding mountains.
Formation - the fundamental unit of similar rock assemblages used in
stratigraphy.
Intermontane belt - between mountains (ranges), a usually longer than wide
depression occurring between enclosing mountain ranges that supply the
erosional material to infill the basin.
Lode mineral claim (Nevada) - with a maximum area contained within 1500'
long by 600' wide = 20.66 acres.
Nuees Ardante or Ladu - an extremely hot, gaseous, somewhat horizontally
ejected lava, often from near the summit that accentuates the downward flow
or "glowing avalanche" because of its mobility.
Overburden or Drift Cover - any loose material which overlies bedrock.
Plagioclase feldspar - a specific range of chemical composition of common
or abundant rock forming silicate minerals.
Playa - the lowest part of an intermontane basin which is frequently
flooded by run-off from the adjacent highlands or by local rainfall.
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Plutonic, igneous or intrusive rock - usually a medium to coarser grain
sized crystalline rock that generally is derived from a sub-surface magma
and then consolidated, such as in dykes, plugs, stocks or batholiths, from
smallest to largest.
Porphyritic in augite pyroxene - Large porphyroblasts or crystals of a
specific rock-forming mineral, i.e. augite occurring within a matrix of
finer grained rock-forming minerals.
Quarternary - the youngest period of the Cenozoic era.
Snow equivalent - Approximately 1" of precipitation (rain) = 1' snow.
Syenite - Coarse grained, alkalic, low in quartz intrusive rock.
Trachyte - fine grained or glassy equivalent of a syenite.
Volcaniclastic - Angular to rounded particles of a wide range of size
within (a welded) finer grain-sized matrix of volcanic origin.
2.0 Disclaimer
The author reviewed the historical data and has personally visited the property
area. This report is entirely the responsibility of the author who based his
recommendations and conclusions on his personal experience in the general area
and mineral exploration business and upon sources of information that are
identified.
3.0 Property Description and Location
The Sky property consists of 4 located mineral claims in one contiguous, 2x2
group (see Figure 2) that are listed as follows:
Name Area Good to Date
---- ---- ------------
Sky 1 20.66 ac. Sept. 1, 2008
Sky 2 20.66 ac. Sept. 1, 2008
Sky 3 20.66 ac. Sept. 1, 2008
Sky 4 20.66 ac. Sept. 1, 2008
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The beneficial owner of the above listed mineral claim is Saguaro Resources,
Inc. Contact person, Lynn Briggs, Officer/Director, 71 The Mead, Darlington,
England DL1 IEU.
The Sky 1-4 mineral claims (see Figure 2) comprise a total of 82.64 acres. The
mineral claim area may be located on the Esmeralda County, Lida Quadrangle,
71/2' map sheet. At the center post of the property the latitude is 37(degree)
28.003' N and the longitude is 117(degree) 24.308' W. The Sky 1-4 mineral claim
area is situated 22 airmiles south-southwest of the Town of Goldfield, Nevada.
The claims are motor vehicle accessible from the Town of Goldfield by traveling
15 miles south along Highway 95 to the Lida (Cottontail), Highway 266 junction
that is then taken to the west for 15 miles to a good gravel road traveling
north from the highway. This road is taken 2 miles to the Sky 1-4 mineral
claims.
4.0 Accessibility, Climate, Local Resources,
Infrastructure and Physiography
The Sky property lies in the west central area of the State of Nevada, 32 miles
by motor vehicle south-southwest of the Town of Goldfield for 15 miles on
Highway 95 and then traveling west for 15 miles on Highway 266 and then for 2
miles to the north on a good gravel road to the property.
The area experiences about 4" - 8" of precipitation annually of which about 10%
may occur as a snow equivalent this amount of precipitation suggests a climatic
classification of arid to semi-arid. The summers can experience hot weather,
middle 60's to 70's F(degree) average with high spells of 100+F(degree) while
the winters are generally more severe than the dry belt to the west and can last
from December through February. Temperatures experienced during mid-winter
average, for the month of January, from the high 20's to the low 40's F(degree)
with low spells down to -20 F(degree).
The Towns of Tonopah and Goldfield offer much of the necessary infrastructure
required to base and carry-out an exploration program (accommodations,
communications, equipment and supplies). Larger or specialized equipment can
likely be acquired in the City of Las Vegas lying 209 miles south of Tonopah and
183 miles south of Goldfield by paved road (Highway 95).
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Infrastructure such as highways and secondary roads, communications,
accommodations and supplies that are essential to carrying-out an exploration
and development program are at hand in Goldfield.
The physiography of the Sky property is very low east-sloping terrain. The
general area with many broad open valleys and moderately high mountain ridges
hosts sagebrush and other desert plants on the low hill slopes.
Mining holds an historical and contemporary place in the development and
economic well being of the area.
The claim area ranges in elevation from 5,280' - 5,380' mean sea level. The
physiographic setting of the property can be described as open desert in a broad
valley within a mosaic of moderately rugged mountains on the west and east well
beyond the claim boundaries. The area has been surficially altered both by
fluvial and wind erosion and the depositional (drift cover) effects of
in-filling. Thickness of drift cover in the valleys may vary considerably.
5.0 History
The recorded mining history of the general area dates from the 1860's when
prospectors passed through heading north and west. The many significant lode
gold, silver and other mineral product deposits developed in the area was that
of the Goldfield Camp, 1905; Coaldale, coal field, 1913; Divide Silver Mining
District, 1921 and the Candalaria silver-gold mine which operated as an
underground lode gold deposit in 1922 and again in the 1990's as an open cut,
cyanide heap leach operation. The Tonopah District while mainly in Nye County is
on the edge of nearly all of the gold-silver camps of Esmeralda County, if not
strictly in location then certainly as a headquarters and supply depot for the
general area. The Tonopah Camp produced mainly silver with some gold from quartz
veins in Tertiary volcanic rocks. The period 1900-1921 saw the Camp produce from
6.4 million tons of ore, 138 million ounces of silver and 1.5 million ounces of
gold or an average of 22 oz/ton silver and slightly less than 1/4 oz/ton gold,
very rich ore by current standards.
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6.0 Geological Setting
6.1 Regional Geology
The regional geology of Nevada is depicted as being underlain by all types of
rock units. These appear to range from oldest to youngest in an east to west
direction, respectively. Some of the oldest units are found to occur in the
southeast corner of the State along the Colorado River. The bedrock units often
exhibit a north-south fabric of alternating east-west ranges and valleys. This
feature may suggest E-W compression that may have expression as low angle thrust
faults on walls of some canyons (see Figure 3a). Faulting plays a large part in
many areas of Nevada and an even larger part in the emplacement of mineral
occurrences and ore bodies.
6.2 Local Geology
The local geology about the Sky property which lies approximately 22 airmiles
south-southwest of Goldfield, Nevada is seen to occur in a basin-type area of
considerable length and width that is surrounded by rock exposure ridges and
ranges containing some fairly high peaks. This basin area appears to trend in
the direction of from NE of Lida, NV toward the SW of Goldfield, NV some 12-15
miles with an intervening bedrock ridge close to the southern and northern ends
of the basin. Near Lida there are a concentration of observed thrust faults
while on the Goldfield end there are more high angle faults. In the southern
area of the basin near Mount Jackson are observed arcuate-shaped faults and rock
unit contacts. It is felt that in an area expressing such noticeable structural
changes and relevant peripheral geology that the setting may have been conducive
to hydrothermal solutions offering mineralization.
6.3 Property Geology
The geology of the Sky property area may be described as being underlain by
Quaternary aged and/or desert wash, collovium, alluvium and playa deposits. This
younger covered basin within a larger surrounding area of rock exposure and some
known mineral occurrences exhibits a good geological setting and a target area
in which to conduct mineral exploration.
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6.4 Deposit Type
The deposit types that are found occurring in the regional and the more
localized areas vary considerably. Silver and gold quartz veins predominate at
Tonopah. Some of the most productive veins represent the silicification and
replacement of sheeted zones of trachyte that was originally marked by close-set
parallel fractures, but not faulting. The two hosts of mineralized quartz veins
are 1) older pre-Tertiary volcanic rocks, i.e. Silver Peak (Mineral Ridge area),
Weepah and Hornsilver or 2) Tertiary rhyolite host rocks that occur at Tonopah
and other younger volcanic rocks, i.e. Goldfield and Divide. Base metal deposits
are more commonly of interest now than in the past and many prospects occur in
the general area. The industrial mineral barite that is observed to occur either
in vein or bedded types has been recognized in the general area. In the general
area of the Sky property the author has experienced previous MMI sample results
that exhibited both anomalous correspondence in the gold exploration suite (GES)
and the base metal suite (BMS), as well as, some anomalous coincidence between
the two suites.
Geophysical techniques may be most effective in the covered areas as a follow-up
to prospecting and MMI soil sampling of the Phase 1 program.
6.5 Mineralization
By far the largest production in the County comes from the vein-type of gold and
silver occurrences in quartz fissure vein replacement in either pre-Tertiary
volcanic or Tertiary volcanic host rocks.
7.0 Exploration
7.1 Geophysics of the Sky 1-4 Mineral Claims
The aeromagnetic results shown in Figure 4 are from a survey after U.S.G.S. map
GP-753.
The Sky property is seen to lie in a covered basin area between two subtle
west-east trending magnetic "highs". There is not much change evident in
gradient in the claim area in this in-filled basin of unknown depth, but
possibly related to a structural feature that could reflect a rock contact or
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alteration zone. Ground geophysical surveys may add more detail to our
understanding of the possible potential of the claim area.
7.2 Geochemistry of the Sky 1-4 Mineral Claims
To the best of the authors' knowledge, the Sky 1-4 mineral claim area has not
undergone any detailed ground exploration work including geochemistry which may
have usefulness in this area.
8.0 Drilling
No drilling appears to have taken place on the area covered by the Sky mineral
claims.
9.0 Sample Method and Approach
Standard sampling methods are utilized, for example a rock sample would be
acquired from the rock exposure with a hammer. The sample will be roughly
2"x2"x2" of freshly broken material. The sample grid location is recorded with a
global positioning system (GPS) that is marked in the logbook after a sample
number has been assigned. The sample number would be impressed on an aluminum
tag and on a flagging that will be affixed at the sample site for future
location.
9.1 Results
As exploration work could be conducted and assessed, a decision would be made as
to its importance and priority. The next phase of work will be determined by the
results from the preceding one. At this point, it is necessary to suggest that a
two phase exploration approach be recommended.
10.0 Sample Preparation, Analyses and Security
Our rock exposure samples would be taken with known grid relationships that have
been tied-in with a hand held global positioning system (GPS).
The samples would be in the possession of the field supervisor of the
exploration project.
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The relatively new and proprietary method for sampling and analyses called
mobile metal ions (MMI) may be very useful in our exploration endeavors. The
samples in the desert climates are taken consistently from between 4" and 8" in
the soil layer below the organic zone. The samples undergo selective digestion
with subsequent analyses for the chosen metal package. The cost of taking the
MMI samples and the analyses are more expensive than standard method, but some
studied results have been encouraging. All analyses and assaying will be
carried-out in a certified laboratory.
11.0 Data Verification
Previous exploration has not been conducted on this mineral claim area by the
author, but its good geological setting and interesting aeromagnetic data
encourages the recommendation to conduct exploration work on the property. The
author is confident any information included in this report is accurate and can
be utilized in planning further exploration work.
12.0 Adjacent Properties
The Sky 1-4 mineral claims occur in a general area that possibly has undergone
some prospecting in the past. The general area has known molybdenum occurrences,
as well as, gold and silver potential and the non-metallic minerals barite and
diatomaceous earth are also found in the area. The Sky property does have
immediately adjacent mineral properties staked about them by un-related persons
or parties.
13.0 Mineral Processing and Metallurgical Testing
No mineral processing or metallurgical testing analyses have been carried- out
on the Sky property.
14.0 Mineral Resource and Mineral Reserve Estimates
No mineralization has been encountered to date by the author and no calculation
of any reliable mineral resource or reserve, conforming to currently accepted
standards, could be undertaken at this time.
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15.0 Other Relevant Data and Information
All relevant data and information concerning the Sky property has been presented
in this report.
16.0 Interpretation and Conclusions
The object of the recommendations made in this report are to facilitate in the
possible discovery of a large, possibly lower grade mineral deposit of base
and/or precious metals or other minerals of economic consideration that have
open pit and/or underground mining potential. If such a deposit exists, it may
occur under the drift or overburden covered areas of the Sky 1-4 mineral claims.
17.0 Recommendations
The author believes that the known mineralization encountered to date in
neighboring areas is possibly indicative of a larger mineralized system in the
general area. The drift covered parts of the property offer a good exploration
target because of the possibility of mineralization, good geological setting and
generally a lack of exploration testing. Also, remote sensing such as
aeromagnetics may indicate possible exploration areas of interest within the Sky
1-4 mineral claims.
Detailed prospecting, mapping and reconnaissance MMI soil geochemical surveys of
the claim area should be undertaken if and when the Company is in a position to
do so. The following three phase exploration proposal and cost estimate is
offered with the understanding that consecutive phases are contingent upon
positive and encouraging results being obtained from each preceding phase:
Phase 1
Detailed prospecting, mapping and soil geochemistry.
The estimated cost for this program is all inclusive.
The timeline for accomplishing this phase of fieldwork
including the turn-around time on analyses is approximately
two months $ 8,500
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Phase 2
Magnetometer and VLF electromagnetic, grid controlled
surveys over the areas of interest determined by the
Phase 1 survey. Included in this estimated cost is
transportation, accommodation, board, grid installation,
two geophysical surveys, maps and report 9,500
-------
Total $18,000
=======
17.1 Recommended Drilling
No recommendations for drilling on the Sky 1-4 mineral claims can be made at
this time. If the exploration work were to proceed through Phase 2 this decision
possibly could then be made.
18.0 References
Alders , J.P. and Stewart, J.H., 1972: Geology and Mineral Deposits of Esmeralda
County, Nevada. Bulletin 78, Nevada Bureau of Mines and Geology.
Hildenbrand, Thomas G. and Kucks, Robert P., 1988: Total Intensity Magnetic
Anomaly Map of Nevada. Map 93A, Nevada Bureau of Mines and Geology.
Lincoln, Francis Church, 1982: Mining Districts and Mineral Resources of Nevada
with Map of the State of Nevada (Mineral Occurrences), U.S.G.S. compiled in
1921-22, but to current County boundaries.
Papke, Keith G., 1984: Barite in Nevada. Bulletin 98, Nevada Bureau of Mines and
Geology.
Plouff, Donald, 1990: Aeromagnetic Map of Nevada, Tonopah Sheet, Nevada Bureau
of Mines and Geology.
Ross, Donald C., 1961: Geology and Mineral Deposits of Mineral County, Nevada.
Bulletin 58, Nevada Bureau of Mines and Geology.
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19.0 Author's Qualifications and Certification
I, James W. McLeod, P. Geo do hereby certify as follows:
1.0 I am currently self-employed as a Consulting Geologist with an office
located at 4590 Deodar Road, Silver Springs, NV 89429.
2.0 I am a graduate of the University of British Columbia (1969), B. Sc.
(Major Geology).
3.0 I am a member in good standing of The Association of Professional
Engineers and Geoscientists of British Columbia and a Fellow of The
Geological Association of Canada.
4.0 I have worked as a geologist for a total of 37 years since graduation.
5.0 I have read the definition of "qualified person" set out in National
Instrument 43-101 ("NI 43-101") in Canada and certify that by reason
of my education, affiliation with a professional association (as
defined in NI 43-101) and past relevant work experience, I fulfill the
requirements to be a "qualified person" for the purposes of NI 43-101.
6.0 I am responsible for the preparation of sections 1 to 19 of the
technical report titled "Review and Recommendations, Sky 1-4 Mineral
Claims, Lida Quadrangle Area, Esmeralda County, Nevada, USA." dated
June 20, 2008 (the Technical Report) relating to the Sky mineral
property.
7.0 I have had prior involvement in the general area and specifically the
areas north, east, south and west of the Sky mineral claims.
8.0 I am not aware of any material facts or material change with respect
to the subject matter of the Technical Report that is not reflected in
the Technical Report, the omission to disclose which makes the
Technical Report misleading.
9.0 I am independent of the issuer and have neither interest in the Sky
1-4 mineral claims nor Saguaro Resources, Inc.
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10.0 I have read National Instrument 43-101 and Form 43-101F1, and the
Technical Report has been prepared in compliance with that instrument.
11.0 I consent to the filing of the Technical Report with any stock
exchange and other regulatory authority and any publication by them,
including electronic publication in the public company files on their
websites accessible by the public, of the Technical report.
Dated at Silver Springs, Nevada this 20th Day of June 2008.
James W. McLeod, P. Geo.
Consulting Geologist
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