vetas tech report

Independent Technical Report on the Vetas Gold Project, Santander Department, Republic of Colombia

Prepared for

CB Gold Inc.

Prepared by

SRK Consulting (Canada) Inc. 2CC050.001 April 29, 2014

GRD_WPB/MN_hd 2CC050 001_Vetas_NI 43-101 FINAL Report_GRD_WB_20140429 April 2014

Independent Technical Report on the Vetas Gold Project, Santander Department, Republic of Colombia

Effective Date: April 2, 2014 Signature Date: April 29, 2014 Authors: Dr. Wayne Barnett, Pri.Sci.Nat Guy Dishaw, PGeo

Prepared for Prepared by

CB Gold Inc. Suite 907, 1030 West Georgia St Vancouver, BC V6E 2Y3

SRK Consulting (Canada) Inc. 2200–1066 West Hastings Street Vancouver, BC V6E 3X2 Canada

Tel: +1 604 630 5870 Web: www.cbgoldinc.com

Tel: +1 604 681 4196 Web: www.srk.com

Project No: 2CC050.001 File Name: 2CC050 001_Vetas_NI 43-101 FINAL Report_GRD_WB_20140429

Copyright © SRK Consulting (Canada) Inc., 2014

SRK Consulting Vetas Gold_NI 43101 Report Page ii


Important Notice This report was prepared as a National Instrument 43-101 Technical Report for CB Gold Inc. (CB Gold) by SRK Consulting (Canada) Inc. (SRK). The quality of information, conclusions, and estimates contained herein is consistent with the level of effort involved in SRK’s services, based on: i) information available at the time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions, and qualifications set forth in this report. This report is intended for use by CB Gold subject to the terms and conditions of its contract with SRK and relevant securities legislation. The contract permits CB Gold 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. Except for the purposes legislated under provincial securities law, any other uses of this report by any third party is at that party’s sole risk. The responsibility for this disclosure remains with CB Gold. The user of this document should ensure that this is the most recent Technical Report for the property as it is not valid if a new Technical Report has been issued.

Copyright This report is protected by copyright vested in SRK Consulting (Canada) Inc. It may not be reproduced or transmitted in any form or by any means whatsoever to any person without the written permission of the copyright holder, other than in accordance with stock exchange and other regulatory authority requirements.

SRK Consulting Vetas Gold_NI 43101 Report Page iii


Executive Summary The Vetas Gold Project, 100% owned by CB Gold Inc. (“CB Gold”), comprises a number of epigenetic gold-silver veins, located in the Department of Santander, Colombia, approximately 45 km northeast (straight line) of the city of Bucaramanga. SRK Consulting (Canada) Inc. (“SRK”) has prepared a mineral resource estimate for the property which included design of a geological model and block grade estimates of gold and silver. Mineral resources are classified as Indicated and Inferred Mineral Resources following the CIM Definition Standards for Mineral Resources and Mineral Reserves (November 2010) guidelines.

This technical report documents a mineral resource statement for the Vetas Gold Project prepared by SRK. It was prepared following the guidelines of the Canadian Securities Administrators’ National Instrument 43-101 and Form 43-101F1. The mineral resource statement reported herein was prepared in conformity with generally accepted CIM “Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines.”

Property Description and Ownership The Vetas Gold Project is located within the Department of Santander, Colombia, adjacent to the town of Vetas. The town is approximately 24 km north of the town of Berlin, by gravel road. Berlin is 66 km east, by paved highway, of Bucaramanga, the capital city of the Department of Santander. The property is comprised of ten mining titles totaling an area of over 352 hectares (ha).

The climate in northeastern Colombia is tropical to temperate, with little difference in seasonal temperature. The mean temperature throughout the year is 22°C and ranges from 10°C to 30°C. The Vetas Gold project is accessible via road year round.

Geology and Mineralization The Vetas Gold Project is located within the Santander Massif in the Eastern Cordillera of the Andes Mountains, Colombia (Ciedel et al., 2003; Lavigne, 2011). The rocks that comprise the Santander Massif are generally foliated amphibolite grade gneisses, migmatites, and meta-sediments of the Pre-Cambrian Bucaramanga Formation (Ciedel et al., 2003; Lavigne, 2011). The rocks underlying the Vetas Gold Project area are comprised predominately of orthogneiss of the Bucaramanga formation, cross-cutting felsic dykes, stocks of variable composition, and intrusive fingers of granitic rocks related to the Santander Igneous Complex.

The Santander Massif hosts a number of epithermal gold occurrences(Rodriguez and Warden, 1993), including the Eco Oro Minerals Corp. (EOM) Angostura deposit, and the AUX Resources Corp. (AUX) La Bodega, La Mascota, Pie de Gallo, La Baja deposits, and the San Celestino, Callejón Blanco and Buenavista projects acquired by AUX from Galway and Calvista. All of these deposits are focused along the northeast trending Vetas Fault, which is situated approximately 5 km west of the village of Vetas.

The gold-silver mineralization at the Vetas Gold Project occurs in veins and mineralized structures that strike northeast-southwest (El Dorado Trend), northwest-southeast (San Bartolo Trend), and northwest within a granodiorite intrusive (Real Minera). The San Bartolo and El

SRK Consulting Vetas Gold_NI 43101 Report Page iv


Dorado trends comprise numerous fault-fill veins that dip moderately to steeply northeast and are between 0.3 and 2.5 metres (m) wide. The Real Minera area is characterized by stockwork gold-silver mineralization that occurs in swarms of parallel to sub-parallel veinlets that comprise gently dipping tabular bodies up to tens of metres thick.

Exploration In September 2009, CB Gold commenced a systematic gold exploration program including compilation of available mining and exploration data, mapping of gold showings (surface and underground), lithogeochemical sampling of the stockwork area, surface channel sampling, and diamond drilling.

CB Gold has collected 1980 lithogeochemical and 132 surface channel samples. In addition, CB Gold completed 162 diamond drill holes, totalling 71,035 m, between 2010 and 2013, including the collection of 35,145 core samples.

CB Gold has conducted geological mapping on surface, and accessible underground workings. SRK was contracted by CB Gold to undertake mapping, of both surface and underground exposures, of fault and vein systems, focused on description of vein compositions, orientations, spatial distribution, and relative timing with respect to gold mineralization.

Sample Preparation and Analyses CB Gold has collected lithogeochemical, surface channel, and drill core samples as part of the exploration program at the Vetas Gold Project. CB Gold implemented industry best practices for the collection of diamond drill core and surface channel samples, including the recording of collar location, downhole survey, core logging descriptions, and sampling information.

Drill core samples were collected from half-cores, sawn lengthwise at typically 0.5 to 1.5 m intervals. Surface channel samples were collected from 5 cm wide by 5 cm deep channels cut with a diamond rock saw, and sampled at 0.5 to 1.5 m intervals. CB Gold used industry best practices assaying protocols including the insertion of commercial certified control samples, sample blanks, and duplicates at an adequate frequency to monitor the accuracy and precision of their analytical laboratories.

Between September 2009 and August 2011, samples were sent to ALS Chemex Laboratories (“Chemex”) sample preparation laboratory in Bogotá, for sample preparation, and then the pulps were sent to Chemex laboratories in Lima, Peru, for gold assays by the screened metallics fire assay method, and 30-element Inductively Coupled Plasma (“ICP”) determinations, including silver, copper, zinc, and lead. Since August 2011, CB Gold has sent all samples to ACME Laboratories’ (“ACME”) sample preparation laboratory in Medellin, Colombia and then the pulps were sent to ACME’s laboratory in Vancouver, British Columbia for gold analysis by fire assay and 30 element ICP analyses. The screened metallic assay method is reserved only for samples where visible gold is present, or where high results are returned from the ICP analyses.

SRK utilized the drill core sample and surface channel sample results to guide the mineralization model and for resource estimation.

SRK Consulting Vetas Gold_NI 43101 Report Page v


Mineral Resource and Mineral Reserve Estimates 3-D mineralized vein domains were constructed by SRK, utilizing Leapfrog Geo software, by incorporating drill hole intersections with underground and surface mapping data. A total of 34 vein models were designed and are grouped by their vein character and orientation into four types: (i) El Dorado fault-fill type, (ii) San Bartolo and (iii) Real Minera – San Bartolo fault-fill type, and (iv) Real Minera Stockwork type.

Original assays were composited to 1.5 metre lengths within the mineralized vein domains. Very high grade assays were capped at 100 g/t Au and 200 g/t Ag. The influence of very high-grade gold and silver values was further limited by employing a search distance restriction which prevents a sample, with a value above a high-grade threshold, from being used in grade estimation of distant blocks.

SRK used Vulcan software to complete ordinary kriging and inverse distance interpolations to estimate Au and Ag grades within each of the Real Minera Stockwork type and Fault-Fill type mineralized domains, respectively. Metal values were estimated into blocks measuring 5 x 5 x 5 m, sub-blocked to a minimum of 1 x 1 x 1 m. Known mined areas were removed, based on available surveys of the existing underground development drifts and stopes.

Mineral resources are classified in the Indicated category for all blocks estimated by a minimum of three samples, where at least one sample occurs within a maximum of 20 m from the block centroid. All remaining estimated blocks were assigned to the Inferred category, if at least one sample used to estimate the block was found within a maximum distance of 60 m from the block centroid.

Table i summaries the mineral resources estimated by SRK for the Vetas Gold Project as of April 2, 2014.

SRK Consulting Vetas Gold_NI 43101 Report Page vi


Table i: Mineral Resource Statement*, Vetas Project, Santander Department - Republic of Colombia, SRK Consulting, effective date, April 2, 2014.

Category Tonnage

Grade Metal Au Ag Au Ag

000' t g/t g/t 000'oz 000'oz

Near Surface, Stockwork Veins**ǂ Indicated 1,054 3.20 2.60 108 88

Inferred 941 1.64 1.63 50 49

Narrow, Fault-Fill Veins**

Indicated 118 3.74 8.58 14 33

Inferred 1,681 4.42 17.01 239 920

Combined Mining

Indicated 1,172 3.25 3.20 123 121

Inferred 2,622 3.42 11.49 289 969 * Mineral resources are not mineral reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate. Grade outlier restrictions have been used where appropriate. Cut-off grades are based on a price of US$1,500 per ounce of gold and gold process recoveries of 95 percent for Near Surface, Stockwork vein and Narrow, Fault-Fill vein resources, without considering revenues from other metals. **Near Surface, Stockwork vein mineral resources are reported at a cut-off grade of 0.50 g/t Au in relation to a conceptual pit shell. Narrow, Fault-Fill vein mineral resources are reported at a cut-off grade of 1.50 g/t Au. ǂThe pit shell optimization is conceptual in nature and, although estimated resources are constrained by the property boundary, a significant portion of the conceptual shell extends over the property boundary. It is reasonable that additional land acquisition and surface rights or agreements would be obtained to accommodate this conceptual mining infrastructure and associated surface infrastructure to make the project feasible.

Conclusion and Recommendations CB Gold has conducted a broad exploration program, from 2009 to 2013, including surface and underground mapping and sampling, detailed structural investigations, surface channel sampling, and diamond drilling. The CB Gold diamond drilling and surface channel sampling were acquired using procedures that meet industry best practices. These programs have confirmed the existence of epigenetic lode gold-silver mineralization in this area.

SRK recommends that CB Gold continue to explore the Vetas Gold Project to further evaluate the potential of the deposit including diamond drilling efforts focused on infilling gaps in the current drill coverage along modeled gold-silver veins, and closely spaced drilling to delineate and characterize high-grade gold-silver shoots within the veins.

SRK Consulting Vetas Gold_NI 43101 Report Page vii


Table of Contents 1 Introduction and Terms of Reference .............................................................................. 1

1.1 Scope of Work .............................................................................................................................. 1

1.2 Work Program ............................................................................................................................... 2 1.3 Basis of Technical Report ............................................................................................................. 2

1.4 Qualifications of SRK and SRK Team .......................................................................................... 2

1.5 Site Visit ........................................................................................................................................ 3

1.6 Acknowledgement......................................................................................................................... 3

1.7 Declaration .................................................................................................................................... 3

2 Reliance on Other Experts ............................................................................................... 5

3 Property Description and Location .................................................................................. 6

3.1 Property Status ............................................................................................................................. 6

3.2 Concession Contracts ................................................................................................................... 6

3.3 Permitting ...................................................................................................................................... 7

3.4 Location ........................................................................................................................................ 7

4 Accessibility, Climate, Local Resources, Infrastructure and Physiography ................10

4.1 Access ........................................................................................................................................ 10

4.2 Climate ........................................................................................................................................ 12

4.3 Infrastructure ............................................................................................................................... 12

4.4 Land Use ..................................................................................................................................... 12 4.5 Fauna and Flora.......................................................................................................................... 12

4.6 Physiography .............................................................................................................................. 12

5 History ..............................................................................................................................14

6 Geological Setting and Mineralization ............................................................................16

6.1 Regional Geology ....................................................................................................................... 16

6.2 Property Geology ........................................................................................................................ 18 6.3 Mineralization .............................................................................................................................. 20

6.3.1 El Dorado and San Bartolo Fault-fill Veins ....................................................................... 22

6.3.2 Real Minera Stockwork Veins ........................................................................................... 24

7 Deposit Types ..................................................................................................................29

8 Exploration .......................................................................................................................30

8.1 Compilation of Available Data ..................................................................................................... 30

8.2 Surface and Underground Mapping............................................................................................ 30 8.3 Lithogeochemical Sampling ........................................................................................................ 31

8.4 Surface Channel Sampling ......................................................................................................... 32

9 Drilling ..............................................................................................................................34

SRK Consulting Vetas Gold_NI 43101 Report Page viii


9.1 El Dorado Trend – Fault Fill Veins .............................................................................................. 34

9.2 San Bartolo Trend - Fault-Fill Veins ............................................................................................ 38

9.3 Real Minera - Stockwork Veins ................................................................................................... 38 9.4 Drill Core Logging ....................................................................................................................... 40

10 Sample Preparation, Analysis and Security ...................................................................41

10.1 Lithogeochemical Samples ......................................................................................................... 41

10.2 Drill Core Samples ...................................................................................................................... 41 10.3 Surface Channel Samples .......................................................................................................... 43

10.4 Specific Gravity Measurements .................................................................................................. 43

11 Data Verification ...............................................................................................................44

11.1 Data Verification by CB Gold ...................................................................................................... 44

11.2 Data Verification by SRK ............................................................................................................ 44

11.2.1 Verifications of the Assay Data ......................................................................................... 44

11.2.2 Performance of Quality Assurance and Quality Control Samples .................................... 44

11.2.3 Performance of Field Blanks ............................................................................................. 45

11.2.4 Diamond Drill Hole and Channel Sample Field Duplicates .............................................. 46 11.2.5 Performance of Standard Reference Material (SRM) ....................................................... 46

12 Mineral Processing and Metallurgical Testing ...............................................................50

12.1 Metallurgical Samples ................................................................................................................. 50 12.2 Gravity Concentration ................................................................................................................. 50

12.3 Sulphide Flotation ....................................................................................................................... 50

12.4 Cyanide Leaching ....................................................................................................................... 51

12.5 Gold Recovery ............................................................................................................................ 51

13 Mineral Resource Estimates ...........................................................................................52

13.1 Introduction ................................................................................................................................. 52

13.2 Resource Estimation Procedures ............................................................................................... 52

13.3 Resource Database .................................................................................................................... 53

13.4 Geological Modelling .................................................................................................................. 54 13.4.1 Structural Model ................................................................................................................ 54

13.4.2 Lithological Model ............................................................................................................. 54

13.4.3 Gold-Silver Vein Model ..................................................................................................... 55

13.5 Contact Analysis ......................................................................................................................... 58

13.6 Compositing ................................................................................................................................ 59

13.7 Extreme Assay Values Treatment .............................................................................................. 60 13.8 Bulk Density ................................................................................................................................ 62

13.8.1 Bulk Density Data Analysis ............................................................................................... 62

13.9 Statistical Analysis and Variography........................................................................................... 64

SRK Consulting Vetas Gold_NI 43101 Report Page ix


13.9.1 Univariate Statistics........................................................................................................... 64

13.9.2 Bivariate Statistics ............................................................................................................. 68

13.9.3 Variography ....................................................................................................................... 68 13.10 Resource Estimation Methodology ...................................................................................... 72

13.11 Model Validation and Sensitivity .......................................................................................... 75

13.12 Mineral Resource Classification .......................................................................................... 81

13.13 Mineral Resource Estimate ................................................................................................. 83

13.14 Grade Sensitivity Analysis ................................................................................................... 85

13.15 Vetas Project Exploration Potential ..................................................................................... 89

14 Adjacent Properties .........................................................................................................91

15 Other Relevant Data and Information .............................................................................93

16 Interpretation and Conclusions ......................................................................................94

17 Recommendations ...........................................................................................................96

18 References........................................................................................................................97

19 Date and Signature Page .................................................................................................98

List of Figures Figure 3.1: Location Map – Colombia. .......................................................................................................... 8 Figure 3.2: Property Map – Vetas Gold Project Area. Note elevation contours at 50 m intervals. ............... 9 Figure 4.1: Road Map of Bucaramanga Area, Department of Santander.. ................................................ 11 Figure 4.2: Town of Vetas looking east-northeast. ..................................................................................... 13 Figure 5.1: Plan view of Vetas Gold project site . ..................................................................................... 15 Figure 6.1: Regional Geology of the Vetas Area.. ...................................................................................... 17 Figure 6.2: Vetas Project geological map. . ................................................................................................ 19 Figure 6.3: Location of El Dorado and San Bartolo fault-fill veins and Real Minera Stockwork veins........ 20 Figure 6.4: Schematic Cross Section of the Vetas Area. ............................................................................ 21 Figure 6.5: High Grade Gold/Silver Vein in an Underground tunnel. .......................................................... 23 Figure 6.6: San Bartolo Vein System – Level 2.. ........................................................................................ 24 Figure 6.7: Visible Gold in Quartz Vein Material, from the Real Minera stockwork vein system. .............. 25 Figure 6.8: Real Minera Stockwork Zone, as observed in outcrop. . .......................................................... 26 Figure 6.9: Closeup of Real Minera stockwork veins. ................................................................................. 27 Figure 6.10: Stockwork veins near west side of Real Minera adjacent to granodiorite-gneiss contact. ..... 28 Figure 8.1: Detailed Map of El Dorado Tunnel........................................................................................... 31 Figure 8.2: Surface channel sampling locations. ........................................................................................ 33 Figure 9.1: Drill hole location map for the El Dorado tunnel area. ............................................................. 35 Figure 9.2: Drill hole location map for the La Peter to San Bartolo tunnel area.. ....................................... 36 Figure 9.3: Drill hole location map for the Real Minera stockwork vein area.. ............................................ 39 Figure 11.1: Performance of Diamond Drill Hole and Channel Blank Samples.. ....................................... 45 Figure 11.2: Scatter Plot of Diamond Drill Hole and Channel Sample Field Duplicates ............................ 46 Figure 11.3: Ranked Half Absolute Relative Deviation (HARD) Plot for Field Duplicates .......................... 47 Figure 13.1 : Plan view of the lithological model for the Vetas project. ...................................................... 55

SRK Consulting Vetas Gold_NI 43101 Report Page x


Figure 13.2: Section looking north at 1300825N of veins modeled in the vicinity of the Laguado tunnel. 56 Figure 13.3: Isometric view looking down to the north at the vein model for the Vetas project. .............. 57 Figure 13.4: Gold and silver grades on contact between the El Dorado and San Bartolo type veins and the surrounding amphibolite rock. Contact or 0 m distance indicated by the dashed line. ......................... 58 Figure 13.5: Gold and silver grades on contact between the Real Minera (San Bartolo) veins on the left and the Real Minera (Sheeted) veins on the right. Contact or 0 m distance indicated by the dashed line. 59 Figure 13.6: Histogram of sample lengths within the modelled vein domains. .......................................... 60 Figure 13.7: Average gold and silver grades versus sample lengths. ....................................................... 61 Figure 13.8: Basic statistics of SG samples by logged rock type. ............................................................. 63 Figure 13.9: SG versus depth below surface for granodiorite samples. .................................................... 64 Figure 13.10: Basic statistics of de-clustered gold composite grades of San Bartolo and Sheet type veins within the Real Minera area. ....................................................................................................................... 65 Figure 13.11: Basic statistics of de-clustered gold composite grades of Eldorado type veins. ................. 65 Figure 13.12: Basic statistics of de-clustered gold composite grades of San Bartolo type veins. ............. 66 Figure 13.13: Basic statistics of de-clustered silver composite grades of San Bartolo and Sheet type veins within the Real Minera area. .............................................................................................................. 66 Figure 13.14: Basic statistics of de-clustered silver composite grades of El Dorado type veins. ............... 67 Figure 13.15: Basic statistics of de-clustered silver composite grades of San Bartolo type veins. ............ 67 Figure 13.16: Bivariate statistics of silver and gold grades grouped by vein type. ................................... 68 Figure 13.17: Experimental and modelled gold continuity for El Dorado type veins. ................................ 69 Figure 13.18: Experimental and modelled gold continuity for Real Minera Sheeted type veins .............. 69 Figure 13.19: Experimental and modelled gold continuity for El Dorado type veins using underground chip sampling data. ..................................................................................................................................... 70 Figure 13.20: Section looking east of the LVA model displayed as black dashes within the amphibolite blocks (green). The topographic surface is shown for reference (brown). Note: The orientation of the dashes here is that of the major search ellipse direction used in the estimation of bulk density. ............ 75 Figure 13.21: Comparison of gold block estimates with composite assay data contained within the blocks in the fault-fill vein domains ......................................................................................................................... 76 Figure 13.22: Comparison of gold block estimates with composite assay data contained within the blocks in the stockwork vein domain. ..................................................................................................................... 76 Figure 13.23: Comparison of silver block estimates with composite assay data contained within the blocks in the fault-fill vein domains. ............................................................................................................ 77 Figure 13.24: Comparison of silver block estimates with composite assay data contained within the blocks in the stockwork vein domain. .......................................................................................................... 77 Figure 13.25: El Dorado Vein 35 Au swath plot by Northing ..................................................................... 78 Figure 13.26: San Bartolo Vein 3 Au swath plot by Easting ...................................................................... 79 Figure 13.27: Real Minera Vein 55 Au swath plot by Elevation ................................................................. 79 Figure 13.28: Real Miner Vein 55 Au sample, ILC support, and kriged block model grade-tonnage curves……................................................................................................................................................... 80 Figure 13.29: Swath plot of bulk density versus elevation within the Amphybolite domain. (Note: Bulk density decreases in the upper 200 m elevation.) ...................................................................................... 81 Figure 13.30: Cross section looking west at 1133655E, in the Real Minera area, at the block model colored by distance to sample. . ................................................................................................................. 82 Figure 13.31: Cross section looking west at 1133655E, in the Real Minera area, at the block model colored by final resource class ……………. ................................................................................................ 83 Figure 13.32: Indicated Resource Grade Tonnage Curves within the conceptual pit for the Vetas Project87 Figure 13.33: Inferred Resource Grade Tonnage Curves within the conceptual pit for the Vetas Project . 88 Figure 13.34: Indicated Resource Grade Tonnage Curves for underground resources for the Vetas Project…….. ................................................................................................................................................ 88

SRK Consulting Vetas Gold_NI 43101 Report Page xi


Figure 13.35: Inferred Resource Grade Tonnage Curves for underground resources for the Vetas Project89 Figure 14.1: Adjacent Properties, Vetas Area. Prepared by CB Gold, April 2014. .................................... 92

List of Tables Table i: Mineral Resource Statement*, Vetas Project, Santander Department - Republic of Colombia, SRK Consulting, effective date, April 2, 2014…………………………………………………………………….iv Table 3.1: Property Holdings ........................................................................................................................ 6 Table 8.1: Results of lithogeochemical sampling from 2009-2014 ............................................................. 32 Table 9.1: Drill Hole Summary .................................................................................................................... 34 Table 9.2: Select El Dorado Trend Intersections ........................................................................................ 37 Table 9.3: San Bartolo Trend Intersections ................................................................................................ 38 Table 9.4: Real Minera Intersections .......................................................................................................... 40 Table 11.1: Summary of Analytical Quality Control Data produced by CB Gold on the Vetas Gold Project.45 Table 11.2: Standard Reference Materials ................................................................................................. 48 Table 11.3: SRM Results ............................................................................................................................ 49 Table 12.1: Composite sample Head Assays ............................................................................................. 50 Table 13.1: Exploration Data within the Resource Area ............................................................................. 53 Table 13.2: Metal lost from restricting influence of the high grade samples .............................................. 62 Table 13.3: Modelled gold and silver continuities ....................................................................................... 71 Table 13.4: Block model extents ................................................................................................................ 72 Table 13.5: Gold and silver search ellipse orientation and dimensions ..................................................... 73 Table 13.6: Sample Selection by Interpolation Step .................................................................................. 74 Table 13.7: Assumptions Considered for Conceptual Open Pit Optimization ........................................... 84 Table 13.8: Assumptions Considered for Underground Resources .......................................................... 84 Table 13.9: Mineral Resource Statement*, Vetas Project, Santander Department - Republic of Colombia, SRK Consulting, effective date, April 2, 2014. ............................................................................................ 85 Table 13.10: Indicated Block Model Quantities and Grade Estimates within the conceptual pit*, Vetas Project at Various cut-off Grades. ............................................................................................................... 86 Table 13.11: Inferred Block Model Quantities and Grade Estimates within the conceptual pit*, Vetas Project at Various cut-off Grades. ............................................................................................................... 86 Table 13.12: Indicated Block Model Quantities and Grade Estimates for underground resources*, Vetas Project at Various cut-off Grades. ............................................................................................................... 86 Table 13.13: Inferred Block Model Quantities and Grade Estimates for underground resources*, Vetas Project at Various cut-off Grades. ............................................................................................................... 87 Table 17.1: Recommended exploration drilling budget .............................................................................. 96 Table 19.1: Qualified Persons .................................................................................................................... 98

Appendices Appendix A: Surface Channel Sampling Data Appendix B: Project Drill Data Appendix C: SRM Results

SRK Consulting Vetas Gold_NI 43101 Report Page xii


List of Abbreviations Table i: List of Abbreviations

CB Gold Inc. – Vetas Gold Project, Colombia µ micron W tungsten °C degree Celsius km kilometer

µg microgram km2 square kilometers A annum L litre Ag silver m meter

As arsenic M mega (million) Au gold m2 square meter m3/h cubic meters per hour m3 cubic meter C$ Canadian dollars masl meters above sea level cm centimeter mm millimeter cm2 square centimeter Pb lead

Cu copper pH measure of acidity of solutions G gram ppm part per million G giga (billion) s second (time) g/l gram per litre Sb antimony g/t gram per tonne t metric tonne Ha hectare US$ United States Dollar

K kilo (thousand) yr Year Kg kilogram

SRK Consulting Vetas Gold_NI 43101 Report Page 1


1 Introduction and Terms of Reference The Vetas Gold Project is an advanced gold-silver exploration project, located in the Department of Santander, Colombia. It is located near the town of Vetas, approximately 45 km (straight line) northeast of the city of Bucaramunga.

In October of 2013, CB Gold Inc. (“CB Gold”) commissioned SRK Consulting (Canada) Inc. (“SRK”) to visit the property and prepare a geological and mineral resource model for the Vetas Gold Project. The services were rendered between November 2013 and March 2014 leading to the preparation of the mineral resource statement, reported herein, that was disclosed publically by CB Gold in a news release on April 2, 2014.

This technical report documents a mineral resource statement for the Vetas Gold Project prepared by SRK. It was prepared following the guidelines of the Canadian Securities Administrators’ National Instrument 43-101 and Form 43-101F1. The mineral resource statement reported herein was prepared in conformity with generally accepted CIM “Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines.”

This technical report was compiled by Guy Dishaw, P. Geo., of SRK with contributions from Marius Mare, P. Geo, and Vice President of Exploration for CB Gold. The information presented in this report was provided by CB Gold, as well as gathered by SRK during site visits.

1.1 Scope of Work

The scope of work, as defined in a letter of engagement between CB Gold and SRK, includes the construction of a mineral resource model for the epigenetic lode gold-silver mineralization delineated by drilling on the Vetas Gold Project and the preparation of an independent technical report in compliance with National Instrument 43-101 and Form 43-101F1 guidelines. This work involves the assessment of the following aspects of this project:

• Topography, landscape, access

• Regional and local geology

• Exploration history

• Audit of exploration work carried out on the project

• Geological modelling

• Mineral resource estimation and validation

• Preparation of a mineral resource statement

• Recommendations for additional work



1.2 Work Program

The mineral resource statement reported herein is a collaborative effort between CB Gold and SRK personnel. The exploration database was compiled and maintained by CB Gold, and was audited by SRK. The geological model and outlines for the gold-silver mineralization were constructed by SRK from two-dimensional geological interpretation provided by CB Gold. In the opinion of SRK, the geological model is a reasonable representation of the distribution of the targeted mineralization at the current level of sampling. The geostatistical analysis, variography and grade models were completed by SRK during the months of January to March, 2014. The mineral resource statement was presented to CB Gold on March 28, 2014 and disclosed publicly in a news release dated April 2, 2014.

The mineral resource statement reported herein was prepared in conformity with generally accepted CIM “Exploration Best Practices” and “Estimation of Mineral Resource and Mineral Reserves Best Practices” guidelines. This technical report was prepared following the guidelines of the Canadian Securities Administrators National Instrument 43-101 and Form 43-101F1.

The technical report was assembled in Vancouver during the months of March and April, 2014.

1.3 Basis of Technical Report

This report is based on information collected by SRK during site visits as well as on additional information provided by CB Gold throughout the course of SRK’s investigations. Other information was obtained from the public domain. SRK has no reason to doubt the reliability of the information provided by CB Gold. This technical report is based on the following sources of information:

• discussions with CB Gold personnel;

• inspection of the Vetas Gold Project area, including outcrop and drill core;

• review of exploration data collected by CB Gold; and

• additional information from public domain sources.

1.4 Qualifications of SRK and SRK Team

The SRK Group comprises over 1,600 professionals, offering expertise in a wide range of resource engineering disciplines. The SRK Group’s independence is ensured by the fact that it holds no equity in any project and that its ownership rests solely with its staff. This fact permits SRK to provide its clients with conflict-free and objective recommendations on crucial judgment issues. SRK has a demonstrated track record in undertaking independent assessments of Mineral Resources and Mineral Reserves, project evaluations and audits, technical reports and independent feasibility evaluations to bankable standards on behalf of exploration and mining companies and financial institutions worldwide. The SRK Group has also worked with a large number of major international mining companies and their projects, providing mining industry consultancy service inputs.



The resource estimation work and the compilation of this technical report was completed by Guy Dishaw, PGeo (APEGBC #36183). Dr. Wayne Barnett, Pri. Nat. Sci. completed the site visit in December of 2011, and supervised the site visit by Rodrigo Lordão, Senior Consultant of SRK, in June of 2013. By virtue of their education, membership to a recognized professional association and relevant work experience, Guy Dishaw and Dr. Wayne Barnett are independent Qualified Persons as this term is defined by National Instrument 43-101. Additional contributions to the technical report, sections 3 to 9, were made by Marius Mare, P. Geo, and Vice President of exploration for CB Gold.

Marek Nowak, PEng (APEGBC #16985), Principal Consultant with SRK, reviewed drafts of this technical report prior to their delivery to CB Gold as per SRK internal quality management procedures. Mr. Nowak did not visit the project.

1.5 Site Visit

In accordance with National Instrument 43-101 guidelines, Dr. Wayne Barnett of SRK visited the Vetas Gold Project between December 9 and 13, 2011. A second site visit was conducted between June 1 and June 10, 2013 by Rodrigo Lordao, Senior Consultant of SRK, under the supervision of Dr. Barnett.

The purpose of the site visits was to review the digitalization of the exploration database and validation procedures, review exploration procedures, define geological modelling procedures, examine drill core, interview project personnel, and to collect all relevant information for the preparation of a mineral resource model and the compilation of a technical report. During the visit, particular attention was given to the treatment and validation of drilling and sampling data.

The site visit also aimed at investigating the geological and structural controls on the distribution of the gold-silver mineralization in order to aid the construction of three dimensional gold-silver mineralization domains.

SRK was given full access to relevant data and conducted interviews of CB Gold personnel to obtain information on the past exploration work, to understand procedures used to collect, record, store and analyze historical and current exploration data.

1.6 Acknowledgement

SRK would like to acknowledge the support and collaboration provided by CB Gold personnel for this assignment. Their collaboration was greatly appreciated and instrumental to the success of this project.

1.7 Declaration

SRK’s opinion contained herein, and effective April 2, 2014, is based on information collected by SRK throughout the course of SRK’s investigations which, in turn, reflect various technical and economic conditions at the time of writing. Given the nature of the mining business, these conditions can change significantly over relatively short periods of time. Consequently, actual results may be significantly more or less favourable.



This report may include technical information that requires subsequent calculations to derive sub-totals, totals, and weighted averages. Such calculations inherently involve a degree of rounding and consequently introduce a margin of error. Where these occur, SRK does not consider them to be material.

SRK is not an insider, associate, or an affiliate of CB Gold, and neither SRK nor any affiliate has acted as advisor to CB Gold, its subsidiaries or its affiliates in connection with this project. The results of the technical review by SRK are not dependent on any prior agreements concerning the conclusions to be reached, nor are there any undisclosed understandings concerning any future business dealings.



2 Reliance on Other Experts SRK has not performed an independent verification of land title and tenure information as summarized in Section 3 of this report. SRK did not verify the legality of any underlying agreement(s) that may exist concerning the permits or other agreement(s) between third parties, but have relied on an opinion of title provided by CB Gold.

SRK was informed by CB Gold that there are no known litigations potentially affecting the Vetas Gold Project.



3 Property Description and Location 3.1 Property Status

The Vetas Gold Project consists of ten properties which CB Gold owns 100% through its Colombian branch, Leyhat Colombia Sucursal. These properties are listed in Table 3.1.

CB Gold’s corporate structure consists of one wholly-owned subsidiary; Cedar Business Investment Ltd. (“Cedar”). Cedar has one wholly-owned subsidiary, Leyhat Corporation (“Leyhat”).

Both Cedar and Leyhat are incorporated under the laws of the British Virgin Islands and were acquired by CB Gold on July 20, 2009. Leyhat has one registered branch in Colombia; Leyhat Colombia Sucursal, which holds CB Gold’s interest in the Vetas Gold Project.

Table 3.1: Property Holdings

Property / Mine Type ID / Licence No. Area (ha) San Bartolo Exploration 0032-68 7.84

Arias Exploitation 0161-68 7.84

La Peter Exploitation 017215 8.58

Los Delirios Exploitation 13604 6.22

Real Minera Mining Concession 0050-68 24.61

El Dorado Exploitation 135-68 9.99

San Antonio Exploitation 13477 80.18

Santa Isabel Exploitation 0308-68 9.22

La Triada Mining Concession 16725 159.5

San Alfonso Exploitation 0317-68 38.4

Total 352.38

To date CB Gold has received the assignment of the following titles; 0050-68 (Real Minera), 0032-68 (San Bartolo), 13604 (Los Delirios), 135-86 (El Dorado), 308-68 (Santa Isabel), 0161-68 (Arias),17215 (La Peter),16725 (la Triada), 0317-68 (San Alfonso), and 13477 (San Antonio). All the titles were registered in the name of Company’s Colombian branch before the National Mining Registry in Bogotá.

3.2 Concession Contracts

As at April, 2014 and pursuant to the Acquisition and Option Agreements, the Company was committed to the issuance of up to an additional 4,200,000 common shares and to cash payments of up to $4,150,000, only if the title holders meet certain obligations, to complete the purchase of the respective mineral property titles already 100% transferred to the Company. Also, certain Acquisition Agreements are subject to additional payments of up to US$5 per ounce, up to a maximum of 2,000,000 ounces of gold (or equivalent to US$10,000,000) of measured and indicated mineral resources as disclosed and published in one or more technical reports to be



prepared in accordance with National Instrument (“NI”) 43-101. These additional payments shall be made within 30 business days after the publication of the NI 43-101 compliant technical report and only if the title holders meet certain obligations.

CB Gold has also undertaken work to bring about a change of modality at each property and to transform the respective exploitation or exploration license into a concession contract, which will result in extensions of between 19 and 29 years for the properties. In addition, CB Gold is transferring any relevant environmental management plans from the previous titleholders to Leyhat Colombia Sucursal.

3.3 Permitting

CB Gold currently has all the necessary permits or permissions it requires to undertake its exploration activities, or is in the process of requesting the same. Generally, CB Gold needs to obtain approval of the location of each drill platform and the general drill plan from that platform, water access if it wishes to use local sources such as creeks instead of tankered water, and any surface right access required for the works. CB Gold deals with a number of agencies including the National Mining Agency and the Corporacion Autonoma Regional para la Defensa de la Meseta de Bucaramanga (“CDMB”) which is the competent environmental authority for the Santander Province.

To date, CB Gold has been able to obtain the necessary permits to allow it to continue its exploration work. There are currently no known significant factors or risks that may affect access to the Vetas Gold Project, title to the various properties, or the right and ability to perform the necessary exploration work. The newly created National Mining Agency has suffered from delays in executing its work; however, CB Gold continues to manage the situation and has to date been able to explore its properties satisfactorily.

SRK notes that although the resource estimate presented in this report does not extend across the property boundary, the pit shell optimization is conceptual in nature and a significant portion of the conceptual shell extends over the property boundary. It is reasonable that additional land acquisition and surface rights or agreements would be obtained to accommodate this conceptual mining infrastructure and associated surface infrastructure to make the project feasible.

3.4 Location

The Vetas Gold Project is located at 7° 19’ 30.7” north latitude and 72° 18’ 43.7” longitude, approximately 325 km north-northeast of Bogotá, the capital of Colombia, and approximately 45 km (straight line) northeast of Bucaramanga, the capital of the Department of Santander (Figure 3.1). The property lies within an area of high relief, ranging from 500 m to 800 m, and the elevations in the area range from 2,800 m to 4,200 m above mean sea level (Figure 3.2).



Figure 3.1: Location Map – Colombia. Prepared by CB Gold, March 30, 2014.



Figure 3.2: Property Map – Vetas Gold Project Area. Note elevation contours at 50 m intervals. CB Gold properties are outlined in red. Prepared by CB

Gold, March 30, 2014.



4 Accessibility, Climate, Local Resources, Infrastructure and Physiography

4.1 Access

The Vetas Gold Project area is accessible by road (Figure 4.1). The project area includes the town of Vetas, a mining town, and current exploration by CB Gold is being carried out from Vetas. The town is approximately 24 km north of the town of Berlin, by gravel road. Berlin is 66 km east, by paved highway, of Bucaramanga, the capital city of the Department of Santander. Supplies and heavy equipment are brought to the town of Vetas by trucks.



Figure 4.1: Road Map of Bucaramanga Area, Department of Santander. Prepared by CB Gold, March 30, 2014.



4.2 Climate

The climate in northeastern Colombia is tropical to temperate, with little difference in seasonal temperature. The mean temperature throughout the year is 22°C and ranges from 10°C to 30°C, although, at high elevations, overnight temperatures may drop below freezing. In the mountain regions, temperature is directly related to elevation. Average temperature decrease is approximately 0.6°C per 100 m. Popular terminology recognizes distinct temperature zones (pisos térmicos), which are sometimes referred to as tierra caliente (up to 900 metres above sea level (“masl”) in elevation), tierra templada or tierra del café (900 masl to 2,000 masl), and tierra fria (2,000 masl to 3,000 masl).

There are two wet seasons, one from March to April and the other from October to November. The average annual precipitation ranges from 350 mm to 3,100 mm.

Exploration and mining in the Vetas area are carried out throughout the year.

4.3 Infrastructure

Local infrastructure is available at Bucaramanga, the capital of the Department of Santander, and other nearby towns. Bucaramanga is the sixth largest city in Colombia, and a major commercial and industrial centre for the region, with a population of over 1.2 million. Infrastructure in the nearby towns includes electrical power, cell phone network, and road building equipment. Water, both industrial and potable, is drawn from nearby streams. Diamond drilling equipment is supplied by the company’s contractor, Kluane Colombia Ltda. The area around the town of Vetas is the home to numerous experienced hard rock miners.

4.4 Land Use

The land in the northeastern part of Colombia, and in particular the Vetas area, is used mainly for agriculture by local villagers. The area is covered with extensive lateritic and saprolitic material, and outcrops are common only along streams or along road cuts.

4.5 Fauna and Flora

Wildlife in the area includes various species of frogs, chiguiros (large rodents), snakes, birds (including white swans, parrots, hawks, field doves, and owls) foxes, pumas, ocelots (wild cats), and various species of insects, including the culona ant (which is a delicacy and may be as large as 2 cm). Near the village of Vetas, vegetation consists predominantly of fruit trees, such as banana, papaya, and citrus.

4.6 Physiography

The Vetas area has rugged topography, and outcrops are common, especially in the stockwork area adjacent to and east of the town of Vetas. Elevation in the area of the Vetas Gold Project ranges from 2800 m to 4200 masl. Overburden cover is variable, but generally ranges from 1 m to 10 m thick.



Figure 4.2: Town of Vetas looking east-northeast. Photo courtesy of CB Gold.



5 History Gold mining and production in Colombia dates back to the era of the Spanish Conquistadores in the sixteenth century. Until the latter part of the twentieth century, gold production was predominantly from districts of the Western Cordillera, such as Zaragosa-Segovia-Remedios of the western part of the Antioquia Zone, Central Antioquia, Cauca-Romeral, and others. Some 80% of this production came from placer gold deposits, and from 1537 to 1820, 18% to 40% of total world gold production came from Colombia (Villegas, 1987a and 1987b). During the past few decades, production increased from vein deposits of the Vetas-California district in the Eastern Cordillera. This led to increased exploration in the Santander Massif and to the discovery of the Angostura and La Bodega deposits.

Gold mining in the Vetas area dates back at least to the seventeenth century, when the local miners sent a shipment of gold to pay for the painting of Macarena in Cataluña, Spain. By the end of the nineteenth century, a British company started underground mining at the San Bartolo Mine. A few years later, a French company, financed by the Rothschild Bank, carried out underground mining in the area and transported 26 bags of gold by mule teams.

During the 1940s, gold mining activity increased at the Gloria and La Tosca mines in the California area by using new mills. This caused a relative decrease in mining activity in the Vetas area, especially since the village did not have any access to the main routes in the general area. In the 1950s, the local miners, who originally came from the Basque region of Spain, constructed a 27 km long gravel road from Vetas to Berlin. During the following decade, the local miners also built the Vetas City Hall, parish house, and health centre, all with their own money and with little help from the Colombian Government.

Gold mining in the Vetas area has been carried out by tracked underground methods. In general, development is done by adits at various levels, drifting along narrow veins, mining from stopes, and hauling the ore and waste by two-tonne cars along wooden and/or steel tracks. Electric power is not used and haulage is done by hand. SRK has constructed 3D drift as-builts of all known surveyed underground workings in the project area (Figure 5.1).



Figure 5.1: Plan view of Vetas Gold project site with surveyed underground workings in blue. Note the position of the property boundary in green. Prepared by SRK, March 30, 2014.

There are no written records of recent mining activities at the various underground mines, although local miners report that a total of one to two million ounces of gold have been produced from the various underground mines in the Vetas area. Prior to acquisition by CB Gold, the properties of the Vetas Gold Project were held by private companies, or groups of private individuals who were the title holders.



6 Geological Setting and Mineralization 6.1 Regional Geology

The Vetas Gold Project is located within the Santander Massif in the Eastern Cordillera of the Andes Mountains, Colombia (Ciedel et al., 2003; Lavigne, 2011). The rocks that comprise the Santander Massif are generally foliated amphibolite grade gneisses, migmatites, and meta-sediments of the Pre-Cambrian Bucaramanga Formation (Ciedel et al., 2003; Lavigne, 2011). The general strike of the foliation fabric in the gneissic units is to the northeast, dipping variably to the northwest (Figure 6.1). These rocks are intruded by granitic rocks of the Triassic/Jurassic Santander Plutonic Complex. Both the Precambrian and Triassic/Jurassic age rocks have been intruded by Tertiary dykes and stockworks of variable composition. Also present in the Eastern Cordillera of Colombia are Paleozoic sedimentary rocks of the Silgara formation; however, these rocks are not present in the areas examined within the project area (CB Gold staff, 2011).

The Santander Massif hosts a number of epithermal gold occurrences (Rodriguez and Warden, 1993), including the EOM Angostura deposit, and the AUX La Bodega/La Mascota, Pie de Gallo and La Baja deposits and the San Celestino, Callejón Blanco and Buenavista projects acquired by AUX from Galway and Calvista. All of these deposits are focused along the dominant structural feature in the area, the northeast trending Vetas Fault. The Vetas Fault may be a splay of the north-northwest trending Bucaramanga Fault, approximately 35 km west of the Vetas Gold Project. The Vetas Fault is situated approximately 5 km west of the village of Vetas, and less than 2 km east of the La Vereda Concession (Figure 6.1). The exploration methodology applied during recent programs by EOM and AUX has been to evaluate northeast to east-northeast trending splays of the Bucaramanga Fault. These secondary structures are interpreted to be favourable hosts for gold mineralization in the area.



Figure 6.1: Regional Geology of the Vetas Area. Prepared by CB Gold, July 31, 2013.



6.2 Property Geology

In the Vetas District (Figure 6.1), the major north-northeast trending structures that bound the property are known as the Cucutilla/Vetas fault (Lavigne, 2011). The major property-scale structures that intersect the Vetas Gold Project are northeast trending structures such as the El Dorado and La Peter structures, roughly east-west trending fault zones such as the San Bartolo structure, and mineralized northwest trending sheet vein zones present in the Real Minera intrusive body. Cross-cutting these structures are a system of north-south trending non-mineralized normal faults (Figure 6.2).

Underlying the village of Vetas, are the rocks of the Precambrian Bucaramanga formation and the Santander Plutonic Complex (Lavigne, 2011). The majority of rocks underlying the Vetas Gold Project area are comprised predominately of orthogneiss of the Bucaramanga formation, cross-cutting felsic dykes, stocks of variable composition, and intrusive fingers of granitic rocks related to local rocks of the Santander Igneous Complex. Three intrusive rock types are recognized on the property intruding the gneiss: monzo-granite, diorite, and dacite porphyry. The former two intrusive rocks are interpreted to be part of the Jurassic intrusive and the dacite porphyritic rock may be part of a younger, possibly Tertiary aged, intrusive event (Lavigne, 2011). The northeast and eastern section of the Real Minera land parcel is characterized by the granitic rocks of the Santander complex, which dip to the north-northeast and intrude the surrounding country rock of the Bucaramanga formation. The intrusive rocks comprise a significant portion of this parcel at the surface (Figure 6.2).



Figure 6.2: Vetas Project geological map. Prepared by CB Gold, November, 2013.



6.3 Mineralization

The Vetas Gold Project is part of the Vetas-California gold province, a belt of epithermal gold occurrences of the intermediate sulphidation type (Lavigne, 2011). Gold mineralization in the Vetas-California district occurs mainly within northeast trending zones, and is associated with quartz, pyrite, chalcopyrite, arsenopyrite, galena, sphalerite, tetrahedrite, and silver. In some deposits, uraninite is also present.

The gold-silver mineralization at the Vetas Gold Project occurs in veins and mineralized structures that strike northeast-southwest (El Dorado Trend), northwest-southeast (San Bartolo Trend) and northwest within the granodiorite intrusive (Real Minera). The relative position of these areas is presented in Figure 6.3. The El Dorado and San Bartolo trend veins dip moderately to steeply to the northwest while the Real Minera zones dip gently to the north. A schematic cross section of the relative geological position and orientation of the veins is presented in Figure 6.4.

Figure 6.3: Location of the El Dorado and San Bartolo fault-fill veins and the Real Minera Stockwork

veins. Prepared by CB Gold, March 30, 2014.



Figure 6.4: Schematic Cross Section of the Vetas Area. Prepared by CB Gold, April, 2014.



Preliminary interpretation of field data by CB Gold indicates mineral zoning at the Vetas Gold Project; an increase of sulphide mineral contents, such as galena, sphalerite, and marmatite (iron-rich sphalerite) as well as copper sulphates, and carbonates occur at the lower level of the underground mines at Real Minera, San Bartolo and San Antonio.

CB Gold commissioned a structural study undertaken by SRK at the end of 2011. The SRK structural study identified at least four stages of brittle deformation; three of which are recognized in the study to have gold-silver mineralization. It is the history of progressive deformation and intrusive activity that provided the hydrothermal fluids and structural pathways for this precious-metal deposit. The mineralized fault-fill type structures are interpreted to be single veins or composites, consisting of a number of closely-spaced veins and splays.

6.3.1 El Dorado and San Bartolo Fault-fill Veins

High grade, fault-fill, vein gold mineralization occurs in silicified zones with white and dark chalcedonic quartz veins 30 cm to 2.5 m thick, associated with sulphides and iron oxides (jarosite and goethite). The quartz veins are situated within a wide alteration zone (approximately 1,000 m by 700 m), which is associated with intense iron oxide/hydroxide alteration on the surface. The depth extent of the mineralized vein systems is unknown at this time. The main sulphide constituent in the veins is pyrite (5% to 15%), which occurs as stringers or fine-grained disseminations or aggregates, oriented along the foliation of the host rocks. In places, a purplish mineral (covellite?) is also present along fractures with pyrite. The matrix material of the veins comprises quartz and feldspar of almost equal proportions. Occasionally, fine to medium-grained visible gold is associated with pyrite (Figure 6.5 and 6.6). Commonly, pyrite rich stringers—“veinlets”—give a banded appearance to the rock. In general, the quartz veins are conformable to the foliation of the host amphybolite gneisses, but with varying dips.

Local accumulations of higher-grade gold-silver mineralization (ore-shoots) have been previously recognized in the Vetas Gold Project mineralization zones. Modeling of the ore-shoots is difficult because of low data density and is compounded by the limited strike length of some of the shoots. Detailed mapping by CB Gold personnel of specific shoots, in the underground workings, document the internal complexity of these areas. In general, the plunges of the shoots are controlled by structural intersections and vary according to the relative orientations of the intersecting planes. Shoots controlled by lithology-fault interaction may be modeled by detailed analysis of the general trends of dyke swarms, sharp changes in lithology within the gneissic units, intrusive fingers and kinematic understanding of the faults. Modeling these types of shoots, however, may be problematic, given their relatively limited strike length and distribution. Shoots may also occur in pre-existing structural flexures and bends in the pre-existing fault.

Currently, there is little recognized kinematic information regarding the San Bartolo trend. Offsets, as interpreted from the ortho-photograph, suggest that there is a sinistral component of movement on the San Bartolo system. This relative movement is apparent in the offsets of the El Dorado Trend veins by the San Bartolo Trend. Another important observation is that the orientation of the San Bartolo trend is very similar to the structures modeled in the Real Minera intrusive. This observation, combined with the presence of the tensional stockwork vein arrays at



Real Minera, may suggest that these structures are related. If so, reverse movement on the San Bartolo trend structures may have led to the stockwork vein formation.

Geochemical associations with gold include a strong positive correlation with silver, arsenic, antimony and tungsten. Arsenic shows the strongest affinity for gold while cadmium shows a strong association with silver.

Figure 6.5: High Grade Gold/Silver Vein in an Underground tunnel. Photo courtesy of CB Gold.



Figure 6.6: San Bartolo Vein System – Level 2. Photo courtesy of CB Gold.

6.3.2 Real Minera Stockwork Veins

The Real Minera Stockwork veins are situated in the Real Minera mineral concession adjacent to and immediately north of the El Dorado and San Bartolo fault-fill veins, an area approximately 600 m long and 200 m wide (Figure 6.2). Gold-silver mineralization in the Real Minera area is hosted in a medium-grained monzo-granite to granodiorite that intrudes the older amphibolite gneiss terrain.

The Real Minera stockwork veins have been drill tested to a depth of at least 425 m below surface. This style of mineralization transgresses the contact zone between the amphibolite gneisses, which host the fault-fill veins, and the granodiorite intrusive with numerous occurrences of quartz stockwork veins (Figure 6.6). Stockwork type mineralization was initially identified at La Cueva del Chulo (Vulture’s Cave) and dates back to the time of the Spanish Conquistadores.

Gold mineralization in the granodiorite intrusive body is commonly found as free gold, often visibly coating fracture surfaces or in vugs, and locally returning high assay values up to 325 g/t (Figure 6.7). In general, the stockwork consists of a system of multidirectional sheeted veinlets composed of white and grey quartz, some of which contain abundant iron oxides (after pyrite), and with variable widths ranging from one to five centimeters (Figure 6.6). Many of the veins of similar composition seen in the drill core do not appear to be associated with gold mineralization. Petrographic analysis of these veins will aid in determining the particular association of gold mineralization with the different vein sets.



Argillic alteration (illite, smectite, clay minerals, and pyrite) is commonly associated with the quartz vein occurrences (Rios, 2009a). Zones of sheeted veinlets appear as swarms of parallel to sub-parallel veinlets that comprise gently dipping tabular bodies up to tens of metres thick. At least three such zones are observable in the mapped field area (Figures 6.8 to 6.10). These sheet/stockwork vein zones and their associated orientations are intimately related to gold and silver mineralization in this part of the project area. The southern end of the intrusive is truncated by a structure belonging to the El Dorado Trend. It is likely that the El Dorado and San Bartolo structures are present within the intrusive itself.

Figure 6.7: Visible Gold in Quartz Vein Material, from the Real Minera stockwork vein system. Photo

courtesy of CB Gold.



Figure 6.8: Real Minera Stockwork Zone, as observed in outcrop. Photo courtesy of CB Gold.



Figure 6.9: Closeup of Real Minera stockwork veins. Photo courtesy of CB Gold.



Figure 6.10: Stockwork veins near the west side of Real Minera adjacent to the granodiorite-gneiss

contact. Photo courtesy of CB Gold.



7 Deposit Types Gold mineralization within the Vetas Gold Project is hosted by shear zones exhibiting multiple phases of quartz vein emplacement and reactivation associated with intense argillic alteration and sulphide mineralization. These fault-fill veins are moderately- to steeply-dipping and predominantly found in the gneissic country rocks. A distinct, but likely related, package of stockwork and shallow-dipping sheeted veins, associated with quartz-sericite –pyrite alteration, is found exclusively within a grandiorite intrusive stock. The two styles of mineralization overlap and are interpreted to be cogenetic.

Recent mapping data by CB Gold also suggest that areas of silica-sericite-pyrite alteration within the Precambrian gneisses, and younger granitic rocks at the Vetas Gold Project, have characteristics similar to the alteration assemblages present at La Bodega/Mascota and Angostura deposits of the Santander Massif in northeastern Colombia. Based on published data, gold mineralization at La Bodega and Angostura is reported to be of high sulphidation epithermal type. Lower concentrations of sulphides at Vetas suggest that it may belong to a more ‘intermediate sulphidation’ epithermal class of gold deposits.



8 Exploration There are no records of historical exploration work on the Vetas Gold Project. The ongoing exploration program conducted by CB Gold is the first comprehensive exploration effort in the project area. In September 2009, CB Gold commenced a systematic gold exploration program including compilation of available mining and exploration data, mapping of gold showings (surface and underground), lithogeochemical sampling of the stockwork area, surface channel sampling, and diamond drilling. Diamond drilling details are provided in Section 9.

8.1 Compilation of Available Data

CB Gold has compiled available technical data stored at the Colombian Department of Geology and Mines (Ingeominas) in Bogotá as part of their program. Data compiled includes historic surveys of underground workings, topographic information as well as general information regarding mining methods.

8.2 Surface and Underground Mapping

CB Gold has completed detailed mapping of lithologies and mineralized veins both on surface exposures and accessible underground tunnels. CB Gold has also engaged SRK Consulting, in 2011, to provide specific structural mapping assistance to aid in the development of the structural/vein model for the project.

A surface map compilation prepared by CB Gold is presented in Figure 6.2. A detailed map of the El Dorado tunnel prepared by CB Gold is presented in Figure 8.1.



Figure 8.1: Detailed Map of El Dorado Tunnel. Prepared by CB Gold, November 2013.

8.3 Lithogeochemical Sampling

Since September 2009, CB Gold has collected over 1,900 lithogeochemical samples from the Real Minera stockwork veins, the El Dorado and San Bartolo fault-fill veins, and the surrounding project area. Table 8.1 summarizes results from the various areas. Samples were collected as linear chips and were taken at two meter spacings at El Dorado and five and twenty meter spacings at San Bartolo. All sample locations were surveyed by handheld GPS on surface. Underground samples were measured located by measuring tape and compass from a common point located outside of the mine opening which was surveyed using differential GPS. The underground samples were then calculated based on their relative location to the surveyed point.



Table 8.1: Results of lithogeochemical sampling from 2009-2014

Area No. Of Assay Values (g/t Au) Samples Minimum Maximum Average

Vetas Underground 1097 0.005 667.00 6.93

Vetas Surface 636 0.005 47.60 0.75

Stockwork Area 247 0.005 16.10 0.26

Total 1980 0.005 667.00

CB Gold has used the results of these sampling efforts to develop interpretations and models of the different mineralized trends as well as to guide diamond drill targeting. Due to the nature of the samples (chips) and the lack of quality control information, SRK considers that the collection of these samples do not meet industry best practices. These samples have not been used in the resource estimation presented in this report. Although, the underground sampling results were utilized to confirm variogram models developed from the diamond drilling data.

8.4 Surface Channel Sampling

A program of rock saw channel sampling was initiated in the Real Minera area on July 15th 2013. The purpose of this work was to provide surface confirmation of mineralization intersected in drilling at depth.

The locations of the channels were chosen based on available outcrop exposure, existing underground workings, and vein projections from drill hole intersections. Channels were located approximately 25 m apart where possible and were oriented in a northeast-southwest direction, generally perpendicular to the strike of the mineralization in the Real Minera area. The channels were located on exposed bedrock or excavated by pick and shovel then cleaned with a broom until bedrock was clearly exposed. Samples were then marked out using a measuring tape and were corrected for slope angle to be between 0.5 and 1.5 m true width. A rock saw was used to cut two parallel channels in the bedrock approximately 5 cm apart and 5 cm deep. The beginning and end of each sample was marked by a short saw cut perpendicular to the sample orientation. The area between the two channels was chipped out using a hammer and chisel and placed in a sample bag along with the sample tag and the bag secured with cinch straps.

The beginning and end of each channel was surveyed by differential global positioning system (DGPS). A map showing the location of the 132 channels is provided in Figure 8.2 and the sample results are provided in Appendix A.

The surface channel sample results were verified by SRK along with the diamond drilling data. SRK considers that these samples collected by CB Gold were acquired using adequate quality control procedures that generally meet or exceed industry best practices for resource delineation. The sample results of the channel sampling program have been used to guide the 3d vein models in this study and are used in the resource estimates.



Figure 8.2: Surface channel sampling locations. Prepared by CB Gold, September 2013.



9 Drilling From November 2010 to November 2013, CB Gold has completed a total of 162 diamond drill holes in the project area for a total of 71,035 m (Table 9.1). The location, orientation, and target drilled for each drill hole is listed in Appendix B. Due to the high-relief of the project area, and to increase delineation efficiency, multiple drill holes have been completed from individual drill platforms. The drill hole locations are presented in Figures 9.1 to 9.3.

Table 9.1: Drill Hole Summary

Company Year Number DH Total Drilled

Length (m) Total Samples

Length (m)

CB Gold

2010 2 571 571

2011 78 30,721 16,444

2012 63 30,309 14,829

2013 19 9,434 4,363

Total 2010-2013 162 71,035 36,207

CB Gold began the first diamond drilling program on the Vetas Gold Project in November 2010. Kluane Colombia Ltd. was contracted by CB Gold to provide drilling services. One KD-600 drill rig was used at the start of the program but was replaced by a KD-1000 in February 2011 due to penetration depth issues with the smaller KD-600. A second KD-1000 was added in in February of 2011 to support additional drilling requirements. Core drilling has been performed using wireline with HTW (70.9 mm) or NTW size (56.0 mm) coring equipment.

Diamond drilling platforms were positioned, using differential GPS, by the CB Gold geologists and prepared to measure approximately 5 m x 5 m to accommodate the drilling rig, drill rods, return water/mud sumps, and other equipment. The platform coordinates were recorded in the Universal Transverse Mercator (“UTM”) coordinate system(WGS84).

Before coring began, the drill hole orientation was checked by the CB Gold geologists and then deviation measurements were taken typically every 10 m downhole, using a Reflex magnetic tool. The drill holes range in length from 95 m to 640 m, averaging 450 m. Most holes were drilled on a south-easterly azimuth with an inclination of between fifty and ninety degrees. In most cases, the drill holes were designed to intersect the mineralized zones as close to perpendicular to the strike direction as possible. Since numerous drill holes were fanned from a common platform, true thickness intersections of the mineralized veins were not achieved in most holes.

Select significant intersections are presented in groups by vein type in the following three sections.

9.1 El Dorado Trend – Fault Fill Veins

The El Dorado trend veins strike to the northeast and dip moderately to steeply to the northwest. These veins are located in the southwest quadrant of the Vetas Gold project area and extend into



the northwest quadrant where they are intersected by the San Bartolo trend veins, in the area of the La Peter and Santa Isabela tunnels (Figures 9.1 and 9.2).

Mineralized intersections of this type are relatively common in the drill core record and vary from 1 – 4 m, on average, and often display accompanying zones of multi-stage brecciation, dilational features, such as pockets or vugs, and there are occasionally terminated mineral crystals and rare visible gold. At least two, and as many as four, stacked veins are present along the trend. Generally, the veins above the main Eldorado structure tend to be lower grade than the main structure. Exceptions include hole AR-DDH11-036 with 2.62 m @ 12.0 g/t Au and 104.0 g/t Ag and AR-DDH11-062 with 0.74 m @ 506.69 g/t Au and 89.7 g/t Ag (Table 9.2).

Figure 9.1: Drill hole location map for the El Dorado tunnel area. Area shown is highlighted red in the property overview map inset lower right. The Vetas project boundary is shown in green. Prepared by SRK, March 30, 2014.



Figure 9.2: Drill hole location map for the La Peter to San Bartolo tunnel area. Area shown is highlighted red in the property overview map inset lower right. The Vetas project boundary is shown in green. Prepared by SRK, March 30, 2014.



Table 9.2: Select El Dorado Trend Intersections

El Dorado Structural Trend Length Weighted Average Highlights Drill Hole Structure Area From(m) To(m) Au Wgt Ave Ag Wgt Ave ED-DDH12-087 El Dorado El Dorado 443.13 444.1 [email protected]/t [email protected]/t

ED-DDH12-087 El Dorado HW El Dorado 388.32 391.14 [email protected]/t NSV ED-DDH12-090 El Dorado El Dorado 417.3 419.18 [email protected]/t [email protected]/t

ED-DDH11-030 El Dorado El Dorado 327.8 329.41 [email protected]/t [email protected]/t

ED-DDH11-079 El Dorado El Dorado 212.92 215.08 [email protected]/t NSV ED-DDH11-028 El Dorado El Dorado 296.35 298.7 [email protected]/t [email protected]/t



ED-DDH12-106A El Dorado El Dorado 321.43 324.8 [email protected]/t [email protected]/t

AR-DDH11-041 El Dorado Arias 330.55 331.65 1.1 m @ 2.49 g/t 1.1m @ 12.1 g/t AR-DDH11-036 El Dorado Arias 242.22 243.13 0.91 m @ 6.2 g/t 0.91m @ 548.0 g/t AR-DDH11-036 El DoradoHW Arias 223.89 227.94 [email protected]/t [email protected]/t

AR-DDH11-036 El DoradoHW Arias 198.74 201.36 [email protected]/t [email protected]/t

AR-DDH11-062 El Dorado Arias 249 250.7 [email protected]/t [email protected]/t

AR-DDH11-062 El DoradoHW Arias 162.32 163.06 [email protected]/t [email protected]/t

AR-DDH11-068 El DoradoHW Arias 199 200 [email protected]/t [email protected]/t

AR-DDH11-065 El Dorado Arias 232.07 235.6 [email protected]/t [email protected]/t

AR-DDH11-039 El Dorado Arias 164.73 166.15 1.42 m @ 5.23 g/t 1.42m @ 61.67 g/t AR-DDH11-070 El Dorado Arias 245.05 246.7 [email protected]/t [email protected]/t

Los Delirios-Santa Isabel Structural Trend Weighted Average Highlights Drill Hole Area Structure From(m) To(m) Au Wgt Ave Ag Wgt Ave SI-DDH11-077 Santa Isabel Santa Isabel 244.1 246.02 [email protected]/t [email protected]/t SI-DDH11-080 Santa Isabel Santa Isabel 167.3 168.18 [email protected]/t [email protected]/t

SI-DDH11-072 Santa Isabel Santa Isabel 205 205.07 [email protected]/t [email protected]/t

LD-DDH11-057 Los Delirios Santa Isabel 167 169.1 [email protected]/t [email protected]/t LD-DDH11-054 Los Delirios Santa Isabel 162.2 164 [email protected]/t [email protected]/t LD-DDH11-048 Los Delirios Santa Isabel 414.2 415.28 [email protected]/t [email protected]/t LD-DDH11-048 Los Delirios Santa Isabel 243.45 244.15 [email protected]/t [email protected]/t LD-DDH11-045 Los Delirios La Peter 320.1 321.2 [email protected]/t NSV LD-DDH11-051 Los Delirios Los Delirios 122.6 127.73 [email protected]/t [email protected]/t

LD-DDH11-057 Los Delirios Los Delirious 167 169.1 [email protected]/t [email protected]/t

SI-DDH12-102 Santa Isabel Tesorito 142.53 143.7 [email protected]/t [email protected]/t




SI-DDH12-100 Santa Isabel Tesorito 435.43 439.83 [email protected]/t [email protected]/t SI-DDH12-105 Santa Isabel Santa Isabel 130.25 140.77 [email protected]/t [email protected]/t

SI-DDH12-122 Santa Isabel Santa Isabel 69.11 73.45 [email protected]/t [email protected]/t

mailto:[email protected]/t
























































9.2 San Bartolo Trend - Fault-Fill Veins

The San Bartolo trend strikes to the east-southeast and dips moderately to steeply to the north-northeast. These veins extend from the northwest quadrant into the centre of the Vetas Gold project area, between the La Peter to San Bartolo tunnels (Figure 9.2). Gold mineralization, as with the El Dorado Trend, is present as fault-fill veins associated with the presence of zones of silicic, phyllic and advanced argillic alteration, massive/milky quartz veins, finely banded chalcedony/gray silica veins associated with finely disseminated sulphides and microscopic gold occurrence, and locally, visible gold. Vein widths vary in thickness from a few centimeters to at least couple meters for composite structures. Based on inspection of the drill core data, one difference between the San Bartolo trend gold mineralization and the El Dorado Trend is the relatively higher degree of silicification and a dearth of well-developed clay alteration. Whether or not this difference is due to a different stage of the mineralizing event remains unclear.

Many of the drill holes through the San Bartolo trend were designed to drill test both Real Minera and the San Bartolo structures because of the close proximity of the two targets. Select intersections are provided in Table 9.3.

Table 9.3: San Bartolo Trend Intersections

San Bartolo Structural Trend Weighted Average Highlights Drill Hole Area Structure From(m) To(m) Au Wgt Ave Ag Wgt Ave RM-DDH11-011 San Bartolo San Bartolo 97.2 103.8 [email protected]/t [email protected]/t RM-DDH11-016 San Bartolo San Bartolo 133.3 135.3 [email protected]/t [email protected]/t RM-DDH10-001 San Bartolo San Bartolo 179 181 2.0m@ 9.57g/t [email protected]/t RM-DDH11-009 San Bartolo San Bartolo 209.5 213.8 [email protected]/t [email protected]/t

RM-DDH11-015 San Bartolo HiguernHW 139.05 141.73 [email protected]/t [email protected]/t

RM-DDH11-009 San Bartolo Higueron 71.39 77.95 [email protected]/t NSV RM-DDH11-017 San Bartolo La Botella 134.65 143.93 [email protected]/t [email protected]/t RM-DDH10-002 San Bartolo La Botella 208 214.9 [email protected]/t NSV RM-DDH11-006 San Bartolo La Botella 247.15 251.93 [email protected]/t [email protected]/t

RM-DDH11-006 San Bartolo La Botella 232.37 233.37 [email protected]/t [email protected]/t

9.3 Real Minera - Stockwork Veins

The Real Minera vein system is confined to the granodiorite intrusive body and zones of mineralization generally strike west-northwesterly, dipping gently to the north. It is likely that both El Dorado and San Bartolo type veins are present within the intrusive as well. The Real Minera stockwork veins are located in the northeast quadrant of the Vetas Gold Project area (Figure 9.3). Gold mineralization style in the granodiorite intrusive body is related to the occurrence of free gold, often visibly coating fracture surfaces or in vugs, and occasionally high assay values up to 325 g/t Au. This style of gold mineralization is likely related to sheeted vein structures and also perhaps earlier “stockwork” style veining. In the field, the zones of sheeted veins appear as swarms of parallel to sub-parallel veinlets.














There appears to be significant differences in dip orientation between the surface mapped features and zones interpreted from diamond drill core intersections which are likely due to the effect of the later north-south normal faults. The general morphology of the individual sheet/stockwork veinlet features is a central discrete fracture surface, often oxidized, surrounded by a small halo of silicic/phyllic alteration. In drill core, below the zone of oxidation, the central fracture surface is not present; this may be due to the effect of weathering of the minerals bonding these very fine fractures. One of these features was mapped in detail on surface exposures. The general “pseudo- stratigraphy” of the zone is as follows:

• The top 20-30 m are zones of relatively low vein density, veins are quartz +/- sulphide of variable geometry without alteration envelopes.

• Towards the bottom of these zones, the vein density increases and a sub-parallel vein set begins to dominate.

• Finally, at the bottom of the zones, there is a subzone, several meters thick of dense anastomosing “sheeted” veinlets, fractures, and phyllic/argillic/silicic alteration. At least two other such zones were observed in the field that display a similar character.

As stated above, many drill holes in this area were designed to drill test both the Real Minera and the San Bartolo structures because of the close proximity of the two targets. Select intersections are provided in Table 9.4.

Figure 9.3: Drill hole location map for the Real Minera stockwork vein area. Area shown is highlighted red in the property overview map inset lower right. The Vetas project boundary is shown in green. Prepared by SRK, March 30 2014.



Table 9.4: Real Minera Intersections

Real Minera Structural Trend Weighted Average Highlights Drill Hole Area From(m) To(m) Au Wgt Ave Ag Wgt Ave RM-DDH11-042 Real Minera 47.00 55.27 [email protected]/t [email protected]/t RM-DDH12-081 Real Minera 230.95 235.7 [email protected]/t [email protected]/t

RM-DDH11-046 Real Minera 31.32 72.21 [email protected]/t [email protected]/t RM-DDH11-046 Real Minera 115.95 146.3 [email protected]/t [email protected]/t RM-DDH11-053 Real Minera 208.35 216.85 [email protected]/t [email protected]/t RM-DDH11-075 Real Minera 44.38 45.2 [email protected]/t [email protected]/t

RM-DDH12-119 Real Minera 98.20 101.51 [email protected]/t [email protected]/t

RM-DDH12-121 Real Minera 212.10 220.35 [email protected]/t [email protected]/t RM-DDH13-145 Real Minera 248.70 249.7 [email protected]/t [email protected]/t

RM-DDH13-156 Real Minera 266.60 272.7 [email protected]/t [email protected]/t

9.4 Drill Core Logging

Core recoveries are typically high, with 92% of samples having 100% recovery, and 95% of samples with greater than 90% recovery. The core is kept at the drill site and retrieved once a day and transported to the core logging facility at the Vetas Gold Project. Logging and sampling procedures are in place and were used to capture information from the drill core. The core was logged in detail using paper forms with the resulting data entered into excel spreadsheets by the logging geologist or technician. The following sets of data were captured in the logging tables:

• Lithology

• Structures

• Alteration

• Veins (detail textural descriptions)

• Veins (detailed mineralogy and mineralization style)

• Rock Quality (RQD and Recovery)




mailto:30.35m@












10 Sample Preparation, Analysis and Security 10.1 Lithogeochemical Samples

The methodology of lithogeochemical sampling during the 2009 preliminary exploration program conducted by CB Gold consisted of rock chip sampling along outcrops by CB Gold geologists. The sample positions were chosen based on the locations of east-northeast, northeast, northwest, and north trending structures and quartz veins. Chip and grab sampling was conducted at underground openings. In general, surface lithogeochemical sampling was not based on a grid, rather the objective was to evaluate interpreted structures, as noted above. Grab samples, weighing two to three kilograms, were collected along outcrops and a separate representative sample was stored at the Vetas field office for reference. Chip samples were collected across or along strike in accessible underground workings. Sample lengths were one to three meters and weighed three to four kilograms on average. The chip sample sites were cleaned prior to the sample being collected and marked by red paint showing the sample number. A metric tape and compass were used to facilitate this work.

Preliminary descriptions of the grab and chip samples were carried out at the sample site, and later, a more complete description was completed at the field office. Sample descriptions included location, coordinates, lithologic description, and mineralization features, which were entered into Excel spreadsheets. Sample tickets were placed inside each sample bag, with the corresponding sample number written on the outside of the bag.

Due to the nature of the samples (chips) and the lack of quality control information, SRK considers that the collection of these samples do not meet industry best practices. The lithogeochemical sample results were not used in the production of the resource estimate summarized in this report. They were, however, used by CB Gold to guide diamond drilling activities as described in Section 8.3.

10.2 Drill Core Samples

Drill core was removed from the core tube at the drill site and placed in wooden boxes under the supervision of a CB Gold technician. The core was kept at the drill site and retrieved once a day and transported, by truck, to the core logging facility at the Vetas Gold Project.

The core boxes were placed in order, opened, and then a CB Gold technician measured the recovery percentage and the rock quality designation (RQD). While logging the core, the geologist logged the sample intervals, typically 0.5 to 1.5 m, to be sampled and marked them on the core. The sampling technicians then wrapped the intervals to be sampled in transparent tape to maintain the integrity of the core while being sawn. The core was moved to the sawing station where it was cut in half longitudinally. One half of the core was returned to the box and the other half was placed in the sample bag with the sample tag. The sample bags were then sealed with plastic ties and placed in a secured storage facility until they were shipped to the laboratory. In the storage facility, groups of up to six samples were placed in strong fiber bags, labeled, and sealed with plastic ties that were painted to ensure that they were not opened before reaching the



lab. The split core was then re-sealed in the core box and stored until it was shipped to the Bucaramanga core storage facility.

During the course of sampling, the geologist inserts standards, duplicates, and blanks for quality control. Each batch of samples consisted of a maximum of 65 samples. Each batch included one of each of the five different types of standards (typically used at any given time), spaced every 10-20 samples. The standard sachets (packages) used were a minimum of 100g.

A core duplicate sample was inserted every 15-20 samples. A core duplicate sample was prepared by quarter cutting the sample half core and placing one quarter in the sample bag and the other quarter in the duplicate sample bag. Blank samples were also inserted every 15-20 samples. If possible, blank samples were inserted adjacent to mineralization.

A standard, duplicate, and blank sample was inserted into every batch even if the batch comprised a small number of samples. If visible gold, or very high-grade mineralization, was noted by the logging geologist then the sample would be labeled for screen metallic assay for coarse gold. A blank sample was then inserted immediately adjacent to the high-grade sample.

Samples were sent to ALS laboratories from October 29, 2009 until July 25, 2011. The samples were sent to ALS’ sample preparation laboratory in Bogota. Samples were dried, crushed and split with 250g pulps sent to ALS’ laboratory in Lima, Peru for analyses.

Samples were sent to ACME Laboratories sample preparation laboratory, in Medellin, for sample preparation from August 28, 2011 to July 24, 2013. Samples were crushed, dried, and a 250 g split was pulverized. The pulps were sent to ACME’s laboratories in Vancouver, British Columbia, for analyses.

All samples were analyzed for a 34 element suite, including Au and Ag, by ICP-MS methodology. All samples with Au results in excess of 0.075 ppm were sent for full metallic screen fire assay. If the sample was identified by the logging geologist to contain visible gold, or high-grade mineralization, then the sample was automatically sent for full metallic screen fire assay. If the metallic screen minus fraction was in excess of 10 ppm Au, then a gravimetric finish was also completed.

ACME and ALS Chemex are independent labs accredited to ISO 17025 by the Standards Council of Canada for a number of specific test procedures, including: fire assay for gold and silver with atomic absorption and gravimetric finish; multi-element inductively coupled plasma optical emission spectroscopy; and atomic absorption assays for silver, copper, lead and zinc.

SRK considers that the quality control program developed by CB Gold is effective and overseen by appropriately qualified geologists. The drill core data collected was acquired using adequate quality control procedures that generally meet or exceed industry best practices. The drill core sample results were used in the production of the resource estimate summarized in this report.



10.3 Surface Channel Samples

The channels were located on exposed bedrock or excavated by pick and shovel then cleaned with a broom until bedrock was clearly exposed. Samples were then marked out using a measuring tape and were corrected for slope angle to be between 0.5 and 1.5 m true width. A rock saw was used to cut two parallel channels in the bedrock approximately 5 cm apart and 5 cm deep. The beginning and end of each sample was marked by a short saw cut perpendicular to the sample orientation. The area between the two channels was chipped out using a hammer and chisel and placed in a sample bag along with the sample tag and the bag secured with cinch straps. The channels were photographed before and after sampling. They were then mapped in detail by the senior geologists. The beginning and end of each channel was surveyed by differential global positioning system (DGPS).

Channel sampling followed the same QA/QC protocol for standard, duplicate, and blank insertion used in diamond drilling (Section 10.2). One duplicate sample was cut in the area where the highest grade was expected by the geologist. The samples were placed in a large bag with the sample sequence recorded on the bag along with the laboratory address.

The samples were stored on site in a locked building until they were transported to the ACME preparation laboratory in Medellin. Samples were crushed, dried, and a 250 g split was pulverized. The pulps were sent to ACME’s laboratories in Vancouver, British Columbia, for analyses.

All samples were analyzed for a 34 element suite, including Au and Ag, by ICP-MS methodology. All samples with Au results in excess of 0.075 ppm were sent for full metallic screen fire assay. If the sample was identified by the logging geologist to contain visible gold, or high-grade mineralization, then the sample was automatically sent for full metallic screen fire assay. If the metallic screen minus fraction was in excess of 10 ppm Au, then a gravimetric finish was also completed.

SRK considers that the quality control program developed by CB Gold is effective and overseen by appropriately qualified geologists. The surface channel sample data collected was acquired using adequate quality control procedures that generally meet or exceed industry best practices. The surface channel sample results were used in the production of the resource estimate summarized in this report.

10.4 Specific Gravity Measurements

A total of 7,586 SG determinations were collected by CB Gold staff using water immersion methods from drill core samples. Specific gravity determinations were collected at a rate of one sample per approximately every 10 m of drilling. The weight of unbroken pieces of core less than 15 cm long was determined both in air (dry) and in water (wet) by the technical staff. Samples were not wax-coated. Results were written on data entry sheets and were entered into the drill hole database by the logging geologist.



11 Data Verification 11.1 Data Verification by CB Gold

P.H. (Marius) Maré of CB Gold has reviewed and now oversees the quality assurance/quality control (QA/QC) program, insertion of control samples and standards, and general operation of the exploration, drilling, sampling and data management activities at the Vetas Gold Project. P.H. (Marius) Maré has reviewed drill core and matching assay data and is responsible for the current transfer of drill data into the master database (see section 11.2 below), including the verification that the data is accurately transcribed from its original formats (logging sheets, assay laboratory certificates etc).

CB Gold confirms that the data used in this report has been generated using proper procedures in keeping with industry standards and that data is accurately transcribed from its original sources and as such is suitable for use in this report.

11.2 Data Verification by SRK

The following sub-sections describe SRK’s verification of the data that was provided by CB Gold. The verification includes the comparison of assay certificates received by SRK directly from ACME and ALS labs against the master database and the results of the review of quality control data.

11.2.1 Verifications of the Assay Data

In February 2014, under the supervision of Guy Dishaw, P. Geo, Tessa Scott, a geological consultant with SRK, verified the assay results compiled by CB Gold in a database with copies of assay certificates from Acme and ALS Laboratories. In total, 29,735 drill hole and channel sample assay results were verified. Of the total assay results, 153 are channel samples and 29,582 are diamond drill hole (DDH) assay results. The verification assays are from samples collected between August 2011 and August 2013 and represent over 70% samples assayed during this period. SRK found less than 1% error in the assay data.

11.2.2 Performance of Quality Assurance and Quality Control Samples

For this study, SRK has reviewed the quality control data collected by CB Gold from 2011 to 2013.

Data

At the time of the review, there were a total of 35,125 diamond drill hole and channel sample assay results in the project database. Table 11.1 summarizes the total number of quality assurance and quality control (QA/QC) samples that were processed with the drill hole and channel samples. The samples include field blanks, standard reference materials samples (SRM), and field duplicates. A total of 27 samples have been removed from the quality assurance sample results as they were either mislabelled or noted as contaminated in the database.



Table 11.1: Summary of Analytical Quality Control Data produced by CB Gold on the Vetas Gold Project.

DDH and Channel Sampling Program Count (%) Sample Count 35,125 Field Blanks 1,641 4.7% SRM Samples 2,590 7.4% Field Duplicates 1,647 4.8% Total QC Samples 5,905 16.8%

11.2.3 Performance of Field Blanks

Results for all the blanks submitted to Acme and ALS for analysis are presented in Figure 11.1. True blanks should not have any of the elements of interest much higher than the detection levels of the instrument being used. SRK considers batch samples which contain a blank sample with more than five times of detection limit as problematic batches. From the total of 1,641 blanks submitted, only 5 exceeded 0.025g/t Au, or five times the detection limit, representing a failure rate of only 0.3%

Figure 11.1: Performance of Diamond Drill Hole and Channel Blank Samples. Note the pass/fail line

at 0.025 ppm Au.



11.2.4 Diamond Drill Hole and Channel Sample Field Duplicates

From 2011 to 2013 CB Gold submitted 1,647 quarter-core field duplicates from the diamond drill hole and channel samples for analysis to Acme and ALS as part of their QA/QC program for the Vetas Gold Project. The field duplicates returned results that presented an apparent significant bias when comparing the average of the original samples to the average of the duplicate samples. The bias that was tied to six duplicate values that were extremely high compared to the original sample results. Once the six values were removed, the bias was greatly reduced and was no longer of concern. The field duplicates were variable and did not show any correlation. The low precision is acceptable for field duplicates in a narrow vein gold deposit. The duplicate data is presented on a scatter plot in Figure 11.2 and the percentile rank chart in Figure 11.3.

The percentile rank chart in Figure 11.3 shows that 66.4% of the data pairs have a relative deviation of less than 10%. This is a low but acceptable value for field duplicates.

Figure 11.2: Scatter Plot of Diamond Drill Hole and Channel Sample Field Duplicates



Figure 11.3: Ranked Half Absolute Relative Deviation (HARD) Plot for Field Duplicates

11.2.5 Performance of Standard Reference Material (SRM)

CB Gold has submitted 2,590 SRM samples for analysis to Acme and ALS Labs since 2011. Only two of the standards include silver, SP49 and SQ47. Time series plots for standard reference materials (SRM) can be found in Appendix C. Table 11.2 lists the SRMs for Au and Ag along with the expected values and the two standard deviation limits. Most of the assay results fall within three standard deviations from the expected mean and show no evidence of analytical bias. A summary of the results is presented in Table 11.3.

Six of the SRMs have 10% or more of the samples falling outside of three standard deviations. This is not of great concern as CB Gold has verified they do not rerun failed standards when the surrounding rock being sampled is very low grade. In addition, the relative bias for all SRM results are less than 5%, which gives high confidence that the results from the lab are reasonable. SRK recommends that CB Gold continue to closely monitor the performance of SRMs OXE106, OXJ80, OXJ95, SH65, and SJ63 for gold and SP49 for both gold and silver.



Table 11.2: Standard Reference Materials

Standard Reference Materials

Standard Expected Value Std Dev +2StdDev -2StdDev +3StdDev -3StdDev

Au ppm

OXE106 0.606 0.013 0.632 0.58 0.645 0.567 OXJ80 2.331 0.042 2.415 2.247 2.457 2.205 OXJ95 2.337 0.057 2.451 2.223 2.508 2.166 SJ63 2.632 0.055 2.742 2.522 2.797 2.467 SL61 5.931 0.177 6.285 5.577 6.462 5.4 HiSilP1 12.05 0.33 12.71 11.39 13.04 11.06 SF57 0.848 0.03 0.908 0.788 0.938 0.758 SH65 1.348 0.028 1.404 1.292 1.432 1.264 SP49 18.34 0.34 19.02 17.66 19.36 17.32 SP59 18.12 0.36 18.84 17.4 19.2 17.04 SF45 0.848 0.028 0.904 0.792 0.932 0.764 SQ47 39.88 0.85 41.58 38.18 42.43 37.33 OxJ68 2.342 0.064 2.47 2.214 2.534 2.15 OxE74 0.615 0.017 0.649 0.581 0.666 0.564 OxJ64 2.366 0.079 2.524 2.208 2.603 2.129 OxP61 14.92 0.35 15.62 14.22 15.97 13.87 OxP76 14.98 0.23 15.44 14.52 15.67 14.29

Ag ppm

SP49 60.2 2.5 65.2 55.2 67.7 52.7 SQ47 122.3 5.7 133.7 110.9 139.4 105.2



Table 11.3: SRM Results

Standard Name Element Count Expected

Value Mean Samples

Outside 3Std Deviations

Percent Outside 3Std Deviations

Relative Bias

HiSilP1 Au ppm 381 12.050 12.200 26 7% 1.2% OXE106 Au ppm 38 0.606 0.625 7 18% 3.1%

OXE74 Au ppm 75 0.615 0.600 3 4% 2.4% OXJ64 Au ppm 85 2.366 2.324 0 0% 1.8% OXJ68 Au ppm 110 2.342 2.290 0 0% 2.2% OXJ80 Au ppm 546 2.331 2.354 78 14% 1.0% OXJ95 Au ppm 7 2.337 2.294 1 14% 1.8% OXP61 Au ppm 49 14.920 14.793 0 0% 0.9%

OXP76 Au ppm 88 14.980 14.772 2 2% 1.4% SF45 Au ppm 193 0.848 0.830 2 1% 2.1% SF57 Au ppm 495 0.848 0.839 14 3% 1.1% SH65 Au ppm 83 1.348 1.363 9 11% 1.1% SJ63 Au ppm 71 2.632 2.681 8 11% 1.9% SL61 Au ppm 111 5.931 5.944 0 0% 0.2%

SP49 Au ppm 101 18.340 18.283 19 19% 0.3% SP59 Au ppm 30 18.120 17.873 2 7% 1.4% SQ47 Au ppm 127 39.880 40.260 8 6% 1.0% SP49 Ag ppm 77 60.200 63.068 13 17% 4.8% SQ47 Ag ppm 122 122.300 124.068 5 4% 1.4%

SRK has verified the QAQC program established by CB Gold. In the opinion of SRK, the results of the QAQC program indicate that the diamond drilling and surface channel sample data are suitable for mineral resource estimation. SRK recommends that CB Gold institute a more formal procedure for re-assay and review of SRM results. SRK also recommends that CB Gold send approximately 5% of the core rejects to another lab as check samples.



12 Mineral Processing and Metallurgical Testing A metallurgical testing program was conducted by Inspectorate Exploration & Mining Services Ltd. (“Inspectorate”) of Richmond, British Columbia, on three composite samples collected by CB Gold geologists from their Vetas Gold project. The purpose of the laboratory based tests was to determine sample amenability to gold recovery via centrifugal gravity concentration followed by a comparison between direct cyanide leaching and sulphide flotation processes on the gravity tails. The information summarized in this section has been referenced from the Inspectorate report, dated August 7, 2013.

12.1 Metallurgical Samples

CB Gold provided 24, 16, and 16 half-core samples of the El Dorado fault fill veins, Real Minera stockwork veins(oxidized), and Real Minera stockwork veins(sulphides), respectively, to Inspectorate on May 13, 2013. The samples of each type were combined into three composites for testing with a total weight of 172.7 kilograms.

The head assay of gold and silver were determined by fire assay (Table 12.1).

Table 12.1: Composite sample Head Assays

Composite Au (ppm) Ag (ppm) S (%)

1 - El Dorado 3.77 114.10 4.09

2 - Real Minera Oxide 2.22 <0.5 1.55

3 - Real Minera Sulphide 6.20 42.20 1.91

12.2 Gravity Concentration

Centrifugal gravity tests were carried out to evaluate the samples’ response to gravity concentration. For each composite, 4 kg samples were slurried to 20% solids and run through a Knelson concentrator. Optimal recoveries were achieved at a grind size between 100 and 150 microns. The maximum two-pass gold recovery of 82.8%, 73.5% and 84.0% was achieved on composites 1, 2, and 3 respectively.

The Knelson concentrator tail was split into two samples for sulphide flotation and cyanide leach testing.

12.3 Sulphide Flotation

Baseline rougher flotation tests were conducted on the 2 kg split. Maximum gold recoveries of 71.4%, 34.8% and 75.6% were achieved after eight minutes of flotation on composites 1, 2 and 3, respectively.



12.4 Cyanide Leaching

Bottle-roll direct cyanide leach tests were conducted on the 2 kg split. Maximum gold recoveries of 66.0%, 78.4% and 76.3% were achieved after 72 hours in 0.5g/L NaCN solution for composites 1, 2 and 3, respectively.

12.5 Gold Recovery

For the combined gravity/sulphide flotation test, a maximum gold recovery of 94.3%, 82.7% and 96.1% was achieved on composites 1, 2 and 3, respectively.

For the combined gravity/cyanide leach test, a maximum gold recovery of 94.0%, 94.1% and 94.5% was achieved on composites 1, 2 and 3, respectively.

In the opinion of SRK, the results of the testing of these samples indicate that the mineralization of the Real Minera and El Dorado vein types respond well to the recovery procedures used in the testing. SRK cautions that these samples may not be representative of the entire project area and a more elaborate study is required to characterize the mineralization types and potential gold recoveries.



13 Mineral Resource Estimates 13.1 Introduction

The Mineral Resource Statement presented herein represents the first resource evaluation filed by CB Gold for the Vetas Project. The mineral resource model prepared by SRK considers diamond drill holes and surface channel samples collected during the period from 2011 to 2013. The resource estimation work was completed by Guy Dishaw, P.Geo (APEGBC #36183) under the supervision of Dr. Wayne Barnett, Pri.Sci.Nat.

This section describes the resource estimation methodology and summarizes the key assumptions considered by SRK. In the opinion of SRK, the resource evaluation reported herein is a sound representation of the gold and silver mineral resources found on the Vetas Project at the current level of sampling. The mineral resources have been estimated in conformity with generally accepted CIM “Estimation of Mineral Resource and Mineral Reserves Best Practices” guidelines.

The database used to estimate the Vetas Project mineral resources was audited by SRK. SRK is of the opinion that the current sampling information is sufficiently reliable to interpret with confidence the boundaries for gold and silver veins and that the assay data are sufficiently reliable to support mineral resource estimation.

Leapfrog Geo version 1.4 was used to design the resource estimation domains. Vulcan version 9 was used to review the resource estimation domains, complete geostatistical analysis and variography, construct the block model, estimate metal grades, and tabulate mineral resources.

13.2 Resource Estimation Procedures

The resource evaluation methodology involved the following procedures:

• database compilation and verification;

• review and construction of wireframe models;

• definition of resource domains;

• geostatistical analysis and variography;

• block modelling and grade interpolation;

• resource classification and validation;

• assessment of “reasonable prospects for economic extraction” and selection of appropriate cut-off grades; and

• preparation of the Mineral Resource Statement.



13.3 Resource Database

The Vetas Project database was provided to SRK in Excel format. The current drill hole database within the resource area, therefore, consists of over 35,000 samples from 161 of the 162 drill holes and 132 channels. One drill hole (ED-DDH13-157) was not sampled and is, therefore, not used in the resource estimation. Table 13.1 provides a summary of the database used for the Vetas project resource estimation.

Table 13.1: Exploration Data within the Resource Area

Company Year Number DH Number of Channels

Number of Samples

Total Sample Length (m)

CB Gold

2010 2 0 524 571

2011 78 0 17,928 16,444

2012 63 0 13,014 14,829

2013 18 132 3,679 4,363

Total 2010-2013 161 132 35,145 36,207

The supplied mineral resource database was imported into a Vulcan database and validated by checking for:

• inconsistencies in naming conventions or analytical units;

• duplicate entries;

• overlapping intervals;

• missing intervals;

• blank or zero-value assay results;

• out-of-sequence intervals;

• intervals or distances greater than the reported drill hole length; and

• inappropriate collar locations.

Review of the database resulted in the identification of a few minor errors that were easily resolved before proceeding with the estimation. A number of gold and silver assays were missing from the database but were identified by CB Gold as being lost (3 samples) and contaminated at the lab (18 samples). These samples were treated as missing in the compositing procedure. Non-sampled intervals in drill holes were assigned a value of half the analytical detection limit for gold and silver.



13.4 Geological Modelling

Geological modelling focused on the design of vein models utilizing the existing property structural model to guide local vein orientations and locate vein offsets. Surface mapping and underground mapping, where available, were used to project the extent of individual veins.

13.4.1 Structural Model

The gold-silver mineralization at the Vetas Gold Project occurs as two types of veins and mineralized structures:

1. Fault-fill veins that strike northeast-southwest (El Dorado Trend) and northwest-southeast (San Bartolo Trend) and dip moderately/steeply to the north.

2. Stockwork veins that comprise tabular zones of mineralization within the Real Minera granodiorite/dacite porphyry intrusive and dip shallowly to the north.

Relative timing relationships between the vein types were investigated by SRK (Trippett, 2011), San Bartolo trend veins were found to cross-cut El Dorado trend veins and the Real Minera stockwork type veins. Late, post-mineral, normal-faults were also identified by SRK to offset the gold-silver mineralized system. SRK used these observations to assist in the design of the vein models. Prior to vein modeling, Dr. Wayne Barnett interpreted ‘form surfaces’, or trends of gold-silver mineralization using Leapfrog software to identify the vein types and local orientations.

13.4.2 Lithological Model

SRK designed and modeled lithological solids representing the major rock types mapped in the project area (Figure 13.1), comprising:

• Overburden

• Amphybolite/Gneiss

• Granodiorite

• Dacite Porphyry

Surface mapping and drill logging data were used to constrain the wireframes.



Figure 13.1 : Plan view of the lithological model for the Vetas project (Drill hole collars = black, underground tunnels = blue, property boundary = grey). Prepared by SRK, March 30, 2014.

13.4.3 Gold-Silver Vein Model

Thirty-four gold-silver veins were modeled by SRK using drill hole and channel assays samples as well as surface and underground mapping information.

In order to model the 33 fault-fill veins, SRK used the vein modeling utility in Leapfrog Geo to identify the assay samples within each individual vein and define mapped contacts from the underground and surface maps (Figure 13.2). The gold-silver veins occur along fault structures, and may be associated with thin felsic dykes, but individual veins are not specifically defined in lithological or alteration logs. Alternatively, SRK used the assay grades, at a 0.2 g/t gold threshold, to constrain the vein models and individual vein solids were generated to consistently define a minimum horizontal vein thickness of 1.5 m. Vein extents were adjusted to reflect the interpreted structural relationships as discussed in section 6.3.



Figure 13.2: Section looking north at 1300825N of veins modeled in the vicinity of the Laguado tunnel. Prepared by SRK, March 30, 2014.

For the stockwork vein model in the Real Mineral intrusive, a grade-shell was generated, at a 0.2 g/t gold cut-off, ensuring that the geometry of the model conforms to the identified trend of the stockwork vein zones. Modeled variogram ranges and orientation were used to introduce an anisotropic trend into the grade shell geometry. The stockwork vein model was also clipped to the modeled volume of the Real Minera granodiorite/dacite porphyry intrusion.

The fault-fill veins and the stockwork vein model for the Vetas project are presented in Figure 13.3.



Figure 13.3: Isometric view looking down to the north at the vein model for the Vetas project. Prepared by SRK, March 30, 2014.



SRK is of the opinion that the lithology and mineralization model is adequate for use in resource estimation and appropriate for this level of study.

13.5 Contact Analysis

Gold and silver grades can change across contacts between the modeled domains. The change in grade across the contact between the fault-fill veins, such as El Dorado and San Bartolo type veins, and the surrounding amphibolite rock, can be substantial due to the nature of the mineralized zone (Figure13.4). This observation indicates that a hard boundary condition should be used during the estimation process between the veins and the surrounding amphybolite.

The contact between the San Bartolo type veins and the stockwork type veins in the Real Minera area is sharp, although not as substantial, indicating that hard boundaries should be applied as well (Figure 13.5).

In all cases for the estimation, hard boundaries were applied between designed estimation domains.

Figure 13.4: Gold and silver grades on contact between the El Dorado and San Bartolo type veins and the surrounding amphibolite rock. Contact or 0 m distance indicated by the dashed line.



Figure 13.5: Gold and silver grades on contact between the Real Minera (San Bartolo) veins on the left and the Real Minera (Sheeted) veins on the right. Contact or 0 m distance indicated by the dashed line.

13.6 Compositing

Most of the samples inside the designed estimation domains were collected at 1.5 m and shorter intervals (Figure 13.6). Also, the modelled fault fill vein domains were designed to have a minimum horizontal thickness of 1.5 m. For resource estimation, all assays were composited to 1.5 m lengths. All composites less than 0.75 m were merged with the adjacent composite.

0

100

200

300

400

500

600

700

800

900

1000

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

-7.50 -4.50 -1.50 1.50 4.50 7.50

Aver

age

Sam

ple

Gra

de (g

/t)

Distance from Contact (m)

Samples

Ag(g/t)

Au(g/t)



Figure 13.6: Histogram of sample lengths within the modelled vein domains.

13.7 Extreme Assay Values Treatment

Block grade estimates may be unduly affected by very high grade assays. Sample lengths were analyzed to determine if the analysis of extreme assay values should be completed on the raw assays or composites. Figure 13.7 demonstrates that shorter sample lengths seem to be associated with higher average grades for both gold and silver. For this reason, extreme assays were evaluated based on the sample composites.



Figure 13.7: Average gold and silver grades versus sample lengths.

Instead of capping the high grade composites, SRK elected to limit the influence of the high grade intersections during the estimation process after 7 very high grade outliers were capped. Assays were limited by their influence during the estimation process if they were higher than high grade thresholds, defined from statistical analysis of each vein type. The high grade thresholds applied to the vein domains are presented in Table 13.2.

For grade estimation in all domains, high grade assays were only used if they were found within a maximum distance of 15 m. The direction of the high grade search ellipsoid was aligned with the overall direction of grade continuity in each zone. Limiting the high grade population to smaller volumes resulted in a loss of metal in the resource model (Table 13.2).



Table 13.2: Metal lost from restricting influence of the high grade samples

Vein Type Veins Metal High-Grade Threshold (g/t)

% of Samples Above

Threshold % Metal

Lost

El Dorado 1, 10, 12, 13, 14, 15, 16, 18, 2, 34, 35, 5, 6, 7, 9

Gold 35 0.7% 13.7%

Silver 125 1.9% 22.8%

San Bartolo 3, 4, 8, 11, 17, 19, 49, 50, 51, 52

Gold 17 0.9% 12.2%

Silver 50 4.4% 38.7%

Real Minera Sheeted 55

Gold 30 1.9% 12.2%

Silver 20 2.5% 4.8%

Real Minera San Bartolo

31, 32, 33, 40, 41, 42, 45, 47

Gold 30 0.2% 34.8%

Silver 20 0.7% 44.4%

Note that some significant estimated metal losses have been encountered when compared with unrestricted estimates. Those are partially related to veins with relatively few samples and large drill hole spacing, and partially to a few very high assays that may have, if not restricted, undue influence on the estimates.

13.8 Bulk Density

13.8.1 Bulk Density Data Analysis

The SG database for the Vetas Gold Project contains 7,586 values within the resource area. Each sample was coded by the logged major rock type:

• Amphybolite/Gneiss (4,339 SG records)

• Granodiorite (2,817 SG records)

• Porphyritic Dacite (184 SG records)

• Quartz Veins (246 SG records)

SRK identified 151, or 2% of the total, anomalous SG values that were removed from the dataset and not used in the analysis or estimation. These records included SG values greater than 3.5 and less than 2.0, most likely due to measurement or recording error. SRK considers the remaining 7,435 data records (Figure 13.8) to be amenable for use in estimation of bulk density due to the favourable spatial distribution of the samples.



Figure 13.8: Basic statistics of SG samples by logged rock type.

SRK utilized univariate and bivariate statistics to assist in the design of the bulk density estimation. A trend in the SG values versus depth below surface was identified by SRK. SG values in all lithologies, except samples within the quartz veins, decrease gradually from approximately 200 m depth to surface, or 0 m depth (Figure 13.9). No trend was observed in the quartz vein data.



Figure 13.9: SG versus depth below surface for granodiorite samples.

13.9 Statistical Analysis and Variography

13.9.1 Univariate Statistics

To be able to assess the global, unbiased characteristics of the gold and silver composite grades within the estimation domains, the data were de-clustered by a cell declustering method. Each composite was assigned a weight proportional to the area it may represent.

The de-clustered basic statistics of gold and silver assays composited to 1.5 m lengths in the resource area are presented in groups by vein type in Figures 13.10 to 13.15.



Figure 13.10: Basic statistics of de-clustered gold composite grades of San Bartolo and Sheet type veins within the Real Minera area.

Figure 13.11: Basic statistics of de-clustered gold composite grades of Eldorado type veins.



Figure 13.12: Basic statistics of de-clustered gold composite grades of San Bartolo type veins.

Figure 13.13: Basic statistics of de-clustered silver composite grades of San Bartolo and Sheet type

veins within the Real Minera area.



Figure 13.14: Basic statistics of de-clustered silver composite grades of El Dorado type veins.

Figure 13.15: Basic statistics of de-clustered silver composite grades of San Bartolo type veins.



13.9.2 Bivariate Statistics

Gold and silver grades are positively correlated within the different vein types within the resource area, although the correlation does vary by vein type. El Dorado and San Bartolo fault fill veins generally have a higher Ag:Au ratio, demonstrated by the steeper slope of the data (Figure 13.16). Alternatively, the Sheeted and San Bartolo veins within the Real Minera area have a lower Ag:Au ratio, particularly at grades above 1 g/t Au, demonstrated by the relatively shallower slope of the data (Figure 13.16).

Figure 13.16: Bivariate statistics of silver and gold grades grouped by vein type. Note the relatively

shallow slope of the San Bartolo (Real Minera) and Sheet (Real Minera) veins compared to the El Dorado and San Bartolo fault fill veins. Dashed line at 10:1 slope for reference.

13.9.3 Variography

Semi-variogram models of gold and silver were designed from 1.5 m composite, log-transformed data for each vein type. This type of a model was preferred as it is more resistant to highly variable values. Downhole variograms were used to model nugget effects, i.e., assay variability at very close distances. Omni-directional variograms, for all fault-fill vein types, and directional variograms, for sheeted vein types, were used to model grade continuities for larger distances. In veins with fewer data, variogram models were assumed from the appropriate similar vein type.

An example of experimental and modelled variograms for the El Dorado type veins and Real Minera sheeted vein types are presented in figures 13.17 and 13.18.



Table 13.3 shows the variogram models for gold and silver for each vein type.

Underground channel sample data was available from two underground mining areas; the El Dorado and Laguado tunnels (both El Dorado type veins). Although this data is not used in the estimation, correlogram models of gold and silver were completed to check that the continuity modeled from the drilling data was reasonable. As can be seen in Figure 13.19, the modeled continuity of gold from the underground samples is very similar to the continuity modeled from the drill hole composites (Figure 13.7) at around 15 m.

Figure 13.17: Experimental and modelled gold continuity for El Dorado type veins.

Figure 13.18: Experimental and modelled gold continuity for Real Minera Sheeted type veins (Major

= dark blue, Semi-major = light-blue, and Minor = red).



Figure 13.19: Experimental and modelled gold continuity for El Dorado type veins using underground chip sampling data.



Table 13.3: Modelled gold and silver continuities

Vein Type Veins Metal Nugget C0 Sill

Differential C1

Rotations Ranges

Bearing Plunge Dip Major Semi-Major Minor

El Dorado 1, 10, 12, 13, 14, 15, 16, 18, 2, 34, 35, 5, 6, 7, 9

Gold 0.40 1.60 Omni-Directional

15 15 15

Silver 0.20 0.38 30 30 30

San Bartolo 3, 4, 8, 11, 17, 19, 49, 50, 51, 52 Gold 0.80 3.50

Omni-Directional 15 15 15

Silver 0.25 2.00 10 10 10

Real Minera (Sheeted) 55

Gold 0.80 3.46 65 0 25 30 25 20

Silver 0.35 2.91 65 0 25 45 45 15

Real Minera (San Bartolo) 31, 32, 33, 40, 41, 42, 45, 47

Gold 0.80 3.50 Omni-Directional

15 15 15

Silver 0.25 2.00 10 10 10


GRD_WPB/MN_hd 2CC050 001_Vetas_NI 43-101 FINAL Report_GRD_WB_20140429 April, 2014

13.10 Resource Estimation Methodology

Resource estimation was completed within all modeled veins with block model geometry and extents as presented in Table 13.4. The resource estimation methodology was based on the following:

• 1.5 m composited assay data were capped for very few extreme outliers.

• In each estimation domain, composite assay grades from high grade populations were used in the estimation process with limited influence.

• During estimation, all of the estimation domains were treated as hard boundaries, preventing sharing the composites across the boundaries.

• Gold and silver were estimated by Inverse Distance Squared (ID2) in the El Dorado and San Bartolo fault-fill type veins, and Ordinary Kriging (OK) in the Real Minera stockwork veins.

• Whenever possible, bulk density was estimated by the ID2 methodology. All unestimated blocks were assigned average bulk density values assessed separately for each major rock type.

Table 13.4: Block model extents

Description Easting Northing Elevation

(X) (Y) (Z)

Block Model Origin (Bottom, lower left) 1,132,280 1,299,780 2500

Parent Block Dimension 5 5 5

Sub-Block Minimum Dimension 1 1 1

Number of Parent Blocks 400 380 260

Rotation 0 0 0

The selection of the search radii and rotations of search ellipsoids were guided by modelled ranges of continuity and were guided by modelled directions of continuity from variograms. In addition, the search radii were established to estimate a large portion of the blocks within the modelled area with limited extrapolation. The parameters were established by conducting repeated test resource estimates and reviewing the results as a series of plan views and sections.

The gold and silver grade estimation involved one step for the El Dorado and San Bartolo fault-fill type veins and two successive steps in the Real Minera stockwork veins (Table 13.5). The sample selection parameters by vein type and estimation step are summarized in Table 13.6.



Table 13.5: Gold and silver search ellipse orientation and dimensions

Vein Type Vein Bearing (Z)

Plunge (Y)

Dip (X)

Step 1 – Radii (m) Step 2 – Radii (m)

Y X Z Y X Z

El Dorado

1 212 0 -46 120 120 120

NA

2 226 0 -52 120 120 120

5 215 0 -43 120 120 120

6 40 0 55 120 120 120

7 22 0 64 120 120 120

9 8 0 40 120 120 120

10 40 0 52 120 120 120

12 227 0 -27 120 120 120

13 40 0 20 120 120 120

14 239 0 -30 120 120 120

15 254 0 -15 120 120 120

16 209 0 -60 120 120 120

18 226 0 -40 120 120 120

34 65 0 45 120 120 120

35 65 0 45 120 120 120

San Bartolo

3 296 0 -47 120 120 120

4 275 0 -50 120 120 120

8 290 0 -50 120 120 120

11 278 0 -52 120 120 120

17 280 0 -40 120 120 120

19 301 0 -50 120 120 120

49 296 0 -52 120 120 120

50 87 0 44 120 120 120

51 252 0 -31 120 120 120

52 203 0 -40 120 120 120 Real Minera Sheeted 55 65 0 25 40 30 25 120 120 120


31 273 0 -43 120 120 120

NA

32 82 0 48 120 120 120

33 255 0 -50 120 120 120

40 267 0 -58 120 120 120

41 264 0 -44 120 120 120

42 96 0 40 120 120 120

45 55 0 42 120 120 120

47 245 0 -62 120 120 120



Table 13.6: Sample Selection by Interpolation Step

Vein Type Veins Metal Step 1 Step 2

Min Samples

Max Sample

s Max per

Hole Min

Samples Max

Samples Max per

Hole

El Dorado

1, 10, 12, 13, 14, 15, 16, 18, 2, 34, 35, 5, 6, 7, 9

Gold 3 6 2

NA Silver

3 6 2

San Bartolo 3, 4, 8, 11, 17, 19, 49, 50, 51, 52

Gold 3 6 2 Silver 3 6 2

Real Minera Sheeted 55

Gold 3 8 2 3 6 2 Silver 3 8 2 3 6 2


31, 32, 33, 40, 41, 42, 45, 47

Gold 3 6 2 NA Silver 3 6 2

SRK estimated bulk density from measured SG values into the amphybolite, granodiorite, and dacite domains. Inverse distance was used to interpolate block values from a minimum of six and maximum of eighteen samples. A locally varying anisotropic (LVA) model was developed to control the search orientation such that the trend, discussed in the above section, could be maintained with the estimates. The LVA model was based on the topographic surface and allowed for local variations in these surfaces to be reflected in how the blocks are estimated (Figure 13.20). A search radius of 400 x 400 x 150 m was used for all estimated domains.

Blocks within the model that were not estimated, including quartz veins, were assigned mean bulk density values based on the statistics by major rock type:

• Amphybolite/Gneiss = 2.61

• Granodiorite = 2.51

• Porphyritic Dacite = 2.42

• Quartz Veins = 2.62



Figure 13.20: Section looking east of the LVA model displayed as black dashes within the amphibolite blocks (green). The topographic surface is shown for reference (brown). Note: The orientation of the dashes here is that of the major search ellipse direction used in the estimation of bulk density. Prepared by SRK, March 30, 2014.

13.11 Model Validation and Sensitivity

The gold and silver grade estimates were validated by completing a series of visual inspections and by:

• comparison of local “well-informed” block grades with composites contained within those blocks;

• comparison of average assay grades with average block estimates along different directions - swath plots; and

• change of support analysis.

Since gold is the metal of primary economic importance at the Vetas project, the model validations presented focus on the gold estimates.

Well-Informed Block Grades versus Assays

SRK completed comparisons of estimated gold block grades with drill hole composite assay data contained within those blocks. For both the fault-fill veins (Figure 13.21) and Real Minera stockwork veins (Figure 13.22), the estimated block grades are similar to the composite data, with very good correlation between the estimates and the assays. Note that the overestimation at lower grades and underestimation at higher grades is expected from this interpolation technique. The silver block grades behaved similarly to the gold (Figures 13.23 and Figures 13.24).



Figure 13.21: Comparison of gold block estimates with composite assay data contained within the

blocks in the fault-fill vein domains

Figure 13.22: Comparison of gold block estimates with composite assay data contained within the

blocks in the stockwork vein domain.



Figure 13.23: Comparison of silver block estimates with composite assay data contained within the

blocks in the fault-fill vein domains.

Figure 13.24: Comparison of silver block estimates with composite assay data contained within the

blocks in the stockwork vein domain.



Swath Plots Average composite grades and average block estimates were compared along different directions. This involved calculating de-clustered average composite grades and comparing them with average block estimates along 100m east-west and north-south swaths, and 50m horizontal swaths.

Figures 13.25 to 13.27 present examples of swath plots from an individual vein from each vein type. Here, and similarly in other veins, the average gold composite grades and the average gold estimated block grades are quite similar. Similar relationships were shown for silver in all mineralized veins. Overall, the validation shows that current resource estimates are good reflections of drill hole assay data.

Figure 13.25: El Dorado Vein 35 Au swath plot by Northing



Figure 13.26: San Bartolo Vein 3 Au swath plot by Easting

Figure 13.27: Real Minera Vein 55 Au swath plot by Elevation



Change of Support

There is a relationship between the size or “support” of the composite assay data or block grades and the distribution of their values. The larger the support of the data, the less variable is their distribution. Block estimated grades should not only be unbiased, but should also exhibit variability comparable to the expected grade variability of the selective mining unit (SMU) used during mining. The SMU grade variability can be assessed by an application of an indirect log-normal change of support correction (ILC) to the composite assays. The ILC adjustment results in the assay distribution mimicking the true block grades. In other words, under ideal circumstances with no dilution taking place during mining, the adjusted grade distribution should be similar to the distribution of mined block grades. SRK completed a change of support correction and compared the grade-tonnage curves of the samples, support (ILC corrected), and kriged block estimates (Figure 13.28). Note that kriging was employed for the Real Minera stockwork vein domain 55 only. A block estimate grade-tonnage curve that approaches the support grade-tonnage curve is desired but if the block estimates are too smooth or too variable, which is a less probable scenario, some adjustments to estimation parameters could be made.

As can be seen in Figure 13.28, the grade- tonnage curves between 0.2 and 0.6 g/t gold cut-off are very similar. Since the reporting cut-off for the Real Minera stockwork zone is 0.5 g/t gold, SRK considers that the current resource model is an adequate representation of recoverable tonnage and grade during mining in this domain.

Figure 13.28: Real Miner Vein 55 Au sample, ILC support, and kriged block model grade-tonnage

curves.



SRK validated the bulk density estimates by the following methods:

• Visual comparison of SG sample values to estimated block grades.

• Swath plots comparing average SG sample values to average block values in swaths (or bins) oriented north-south, east-west, and by elevation. The amphibolite domain elevation swath is shown in Figure 13.29.

SRK considers that the bulk density estimates are an appropriate representation of the source data.

Figure 13.29: Swath plot of bulk density versus elevation within the Amphybolite domain. (Note:

Bulk density decreases in the upper 200 m elevation.)

13.12 Mineral Resource Classification

Block model quantities and grade estimates for the Vetas Project were classified according to the CIM Definition Standards for Mineral Resources and Mineral Reserves (November 2010).

Mineral resource classification is typically a subjective concept; industry best practices suggest that resource classification should consider the confidence in the geological continuity of the mineralized structures, the quality and quantity of exploration data supporting the estimates, and the geostatistical confidence in the tonnage and grade estimates. Appropriate classification criteria should aim at integrating those concepts to delineate regular areas at similar resource classification.



SRK is satisfied that the geological and vein modelling honours the current geological information and knowledge. The location of the samples and the assay data are sufficiently reliable to support resource evaluation.

To classify the resources, SRK first assigned an initial classification to candidate blocks based on drill spacing and number of holes used in the estimate, and then designed classification envelopes to define discrete areas of similar resource classification. At this time, no blocks were considered to be falling into measured category.

An initial assignment to an Indicated category was given to blocks that were estimated by samples from more than three holes and occurring at a maximum of 20 m distance (or 80% of the variogram sill for Real Minera Stockwork veins) from block centroids (Figure 13.30). Using these parameters eliminates the majority of blocks within the El Dorado and San Bartolo fault-fill veins from the Indicated category due to the generally wide spacing of drill holes compared to the modeled grade continuity.

SRK then designed an Indicated classification envelope where small clusters of indicated candidate blocks were excluded and islands of Inferred blocks were included in the final volume assigned to the Indicated category (Figure 13.31).

All remaining estimated blocks were assigned to an Inferred category, if at least one sample used to estimate the block was at a maximum distance of 60 m from the block centroids.

Figure 13.30: Cross section looking west at 1133655E, in the Real Minera area, at the block model

colored by distance to sample (Legend inset right, units are metres). Diamond drill hole locations are shown as black traces. Prepared by SRK, March 30, 2014.



Figure 13.31: Cross section looking west at 1133655E, in the Real Minera area, at the block model

colored by final resource class (Legend inset right, 1=measured, 2=indicated, and 3=inferred). The designed indicated wireframe model is shown in green. Diamond drill hole locations are shown as black traces. Prepared by SRK, March 30, 2014.

13.13 Mineral Resource Estimate

CIM Definition Standards for Mineral Resources and Mineral Reserves (November 2010) defines a mineral resource as:

“(A) concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals, coal, and industrial minerals in or on the Earth’s crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge”.

The “reasonable prospects for economic extraction” requirement generally implies that the quantity and grade estimates meet certain economic thresholds and that the mineral resources are reported at an appropriate cut-off grade taking into account extraction scenarios and processing recoveries. In order to meet this requirement, SRK considers that the Real Minera stockwork vein zone is amenable to a bulk extraction technique such as a pit, while the San Bartolo and El Dorado fault-fill veins are amenable to more selective underground extraction techniques.



No preliminary economic assessment has been completed for this project. In order to determine the quantities of material offering “reasonable prospects for economic extraction”, SRK used a pit optimizer and reasonable mining assumptions to evaluate the proportions of the block model (Indicated and Inferred blocks) that could be “reasonably expected” to be mined from a pit. The pit shell optimization is conceptual in nature and, although estimated resources are constrained by the property boundary, a significant portion of the conceptual shell extends over the property boundary. It is reasonable that additional land acquisition and surface rights or agreements would be obtained to accommodate this conceptual mining infrastructure and associated surface infrastructure to make the project feasible.

The optimization parameters for the project were selected based on recent experience from similar projects (Table 13.7). Only the gold value was considered for the optimization at this time. Due to the scale of the deposit, a small to medium size CIL processing method is assumed. The reader is cautioned that the Near Surface, Stockwork vein resources resulting from the pit optimization are used solely for the purpose of testing the “reasonable prospects for economic extraction” by an open pit and do not represent an attempt to estimate mineral reserves. The results are used as a guide to assist in the preparation of a mineral resource statement and to select an appropriate resource reporting cut-off grade.

Table 13.7: Assumptions Considered for Conceptual Open Pit Optimization

Parameter Value Unit Gold Price 1500 US$ per ounce Mining Cost 2.5 US$ per tonne mined Processing 16 US$ per tonne of feed General and Administrative 2.5 US$ per tonne of feed Overall Pit Slope 50 degrees Gold Process Recovery 95 percent In Situ Cut-Off-Grade 0.5 grams per tonne

In order to determine the quantities of material offering “reasonable prospects for economic extraction” by underground mining methods, SRK used reasonable mining assumptions to evaluate the Narrow, Fault-Fill Vein proportions of the block model (Indicated and Inferred blocks) that could be “reasonably expected” to be mined from underground (Table 13.8).

Table 13.8: Assumptions Considered for Underground Resources

Parameter Value Unit Gold Price 1500 US$ per ounce Mining Cost 50 US$ per tonne mined Processing 16 US$ per tonne of feed General and Administrative 2.5 US$ per tonne of feed Gold Process Recovery 95 percent In Situ Cut-Off-Grade 1.5 grams per tonne



SRK considers that the blocks above the calculated in-situ underground cut-off grade of 1.5 g/t gold, located outside of the conceptual pit envelope, show “reasonable prospects for economic extraction” and can be reported as a mineral resource (Table 13.9). The reported resources have been depleted by known mined volumes. SRK constructed 3Dtunnel as-builts for all mine workings on the property for which survey information was available.

Table 13.9: Mineral Resource Statement*, Vetas Project, Santander Department - Republic of Colombia, SRK Consulting, effective date, April 2, 2014.

Category Tonnage

Grade Metal Au Ag Au Ag

000' t g/t g/t 000'oz 000'oz Near Surface, Stockwork Veins**ǂ Indicated 1,054 3.20 2.60 108 88 Inferred 941 1.64 1.63 50 49 Narrow, Fault-Fill Veins** Indicated 118 3.74 8.58 14 33 Inferred 1,681 4.42 17.01 239 920 Combined Mining Indicated 1,172 3.25 3.20 123 121 Inferred 2,622 3.42 11.49 289 969 * Mineral resources are not mineral reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate. Grade outlier restrictions have been used where appropriate. Cut-off grades are based on a price of US$1,500 per ounce of gold and gold process recoveries of 95 percent for Near Surface, Stockwork vein and Narrow, Fault-Fill vein resources, without considering revenues from other metals. **Near Surface, Stockwork vein mineral resources are reported at a cut-off grade of 0.50 g/t Au in relation to a conceptual pit shell. Narrow, Fault-Fill vein mineral resources are reported at a cut-off grade of 1.50 g/t Au. ǂThe pit shell optimization is conceptual in nature and, although estimated resources are constrained by the property boundary, a significant portion of the conceptual shell extends over the property boundary. It is reasonable that additional land acquisition and surface rights or agreements would be obtained to accommodate this conceptual mining infrastructure and associated surface infrastructure to make the project feasible.

13.14 Grade Sensitivity Analysis

The mineral resources of the Vetas Project are sensitive to the selection of the reporting cut-off gold grade. To illustrate this sensitivity, the block model quantities and grade estimates are presented in Table 13.10 and 13.11, for Indicated and Inferred resources within the conceptual pit, and Table 13.12 and 13.13 for Indicated and Inferred resources considered for underground at different gold cut-off values. The reader is cautioned that the figures presented in these tables should not be misconstrued with a Mineral Resource Statement. The figures are only presented to show the sensitivity of the block model estimates to the selection of the gold cut-off value. Figures 13.32to 13.35 present the sensitivities, of Indicated resources and Inferred resources as grade tonnage curves.



Table 13.10: Indicated Block Model Quantities and Grade Estimates within the conceptual pit*, Vetas Project at Various cut-off Grades.

Cut-off Grade Tonnage Grade Metal Content Au (g/t) 000' t Au (g/t) Ag (g/t) Au (000' oz) Ag (000' oz)

0 3,749 1.03 1.24 124 149

0.25 1,712 2.10 2.05 116 113

0.5 1,054 3.20 2.60 108 88

1.5 447 6.39 3.95 92 57

2 349 7.70 4.34 86 49

2.5 284 8.95 4.77 82 44

3 235 10.25 5.12 77 39

5 133 15.25 4.85 65 21 * The reader is cautioned that the figures in this table should not be misconstrued with a Mineral Resource Statement. The figures are only presented to show the sensitivity of the block model estimates to the selection of cut-off grade.

Table 13.11: Inferred Block Model Quantities and Grade Estimates within the conceptual pit*, Vetas Project at Various cut-off Grades.

Cut-off Grade Tonnage Grade Metal Content Au (g/t) 000' t Au (g/t) Ag (g/t) Au (000' oz) Ag (000' oz)

0 4,171 0.52 0.87 70 117

0.25 1,919 0.99 1.24 61 76

0.5 941 1.64 1.63 50 49

1.5 402 2.67 1.92 35 25

2 251 3.25 2.14 26 17

2.5 180 3.65 2.34 21 14

3 86 4.66 2.13 13 6

5 27 6.59 1.71 6 1 * The reader is cautioned that the figures in this table should not be misconstrued with a Mineral Resource Statement. The figures are only presented to show the sensitivity of the block model estimates to the selection of cut-off grade.

Table 13.12: Indicated Block Model Quantities and Grade Estimates for underground resources*, Vetas Project at Various cut-off Grades.

Cut-off Grade Tonnage Grade Metal Content Au (g/t) 000' t Au (g/t) Ag (g/t) Au (000' oz) Ag (000' oz) 0 4,550 0.28 1.21 41 177 0.25 944 0.95 3.19 29 97 0.5 469 1.57 4.19 24 63

1.5 118 3.74 8.58 14 33

2 76 4.87 8.15 12 20 2.5 52 6.04 8.77 10 15 3 34 7.83 9.06 9 10 5 16 12.51 5.70 6 3 * The reader is cautioned that the figures in this table should not be misconstrued with a Mineral Resource Statement. The figures are only presented to show the sensitivity of the block model estimates to the selection of cut-off grade.



Table 13.13: Inferred Block Model Quantities and Grade Estimates for underground resources*, Vetas Project at Various cut-off Grades.

Cut-off Grade Tonnage Grade Metal Content Au (g/t) 000' t Au (g/t) Ag (g/t) Au (000' oz) Ag (000' oz) 0 10,757 1.00 5.43 346 1,878

0.25 5,451 1.86 9.96 326 1,746

0.5 4,195 2.32 12.11 313 1,633

1.5 1,681 4.42 17.01 239 920

2 1,247 5.37 17.87 215 716

2.5 976 6.23 18.24 195 572

3 787 7.08 18.10 179 458

5 374 10.57 19.00 127 229

Figure 13.32: Indicated Resource Grade Tonnage Curves within the conceptual pit for the Vetas

Project



Figure 13.33: Inferred Resource Grade Tonnage Curves within the conceptual pit for the Vetas

Project

Figure 13.34: Indicated Resource Grade Tonnage Curves for underground resources for the Vetas

Project



Figure 13.35: Inferred Resource Grade Tonnage Curves for underground resources for the Vetas

Project

13.15 Vetas Project Exploration Potential

Due to the high relief of the project area, surface drilling efforts have been focused on drilling numerous holes from individual drill platforms to increase definition efficiency. This has resulted in significant gaps in drilling coverage along interpreted gold-silver veins. SRK considers these gaps, as well as the interpreted down-dip extents of the veins, to be significant exploration targets. In areas with large gaps in drilling coverage, SRK assessed exploration potential for additional tonnes and grade. The potential quantity and grades presented here is conceptual in nature and it is uncertain if further exploration will result in discovery of additional mineral resources.

To generate a reasonable range of exploration potential tonnage and grade, SRK has assessed the El Dorado and San Bartolo fault-fill veins and the Real Minera stockwork veins separately. For this assessment, the potential exploration extents of both vein types are limited by the property boundary.

The potential tonnage range for the fault-fill veins was determined by calculating the total tonnage within the interpreted vein model exclusive of the reported resource blocks. For optimistic tonnage assessment the extents of the modeled veins were applied with a maximum of 240 m, along strike, and down dip, from existing sampling. Underground mapping and sampling of the El Dorado vein system has shown vein strike extents up to 240 m. In this case it is assumed that all tonnage would be above a cut-off grade. A more conservative tonnage was calculated by



applying a 65% recovery factor, assuming that some volume of the vein would be below a mining cut-off grade. Recovery factors from historic mining efforts on the property are not known.

The potential tonnage range for the stockwork veins was determined by calculating the total tonnage within the interpreted vein model, constrained by the Real Minera granodiorite intrusive. A second, more conservative, volume was designed to be 10 m maximum distance from the reported resource blocks within the interpreted veins.

The grade range for the fault-fill veins was determined using the underground channel sampling from the El Dorado and Laguado underground mines as well as estimated grades from the resource procedure. SRK calculated vein width weighted average grades for the El Dorado and Laguado underground mines based on channel sampling. The channel sampling was conducted regularly, approximately every 2 m along the drifts, although no quality assurance or quality control documentation is available. The El Dorado drift averaged approximately 7 g/t Au and 57 g/t Ag over 240 m of strike length while the Laguado drift averaged approximately 3 g/t Au and 97 g/t Ag over 180 m of strike length. A more conservative grade was derived from the estimated Au and Ag grades, at 0 g/t cut-off, assuming a 65% recovery factor as described above for the tonnage assumption.

The grade range for the stockwork veins was determined by adding a range of +/- 25% to the estimated resource Au and Ag grade at 0 g/t cut-off.

The estimated exploration target for fault-fill veins range between 2.0M and 3.0M tonnes at an estimated grade ranging between 2.7 g/t to 5.5 g/t Au and 10 g/t to 30 g/t Ag. The estimated exploration target for stockwork veins range between 4.5M and 8.0M tonnes at an estimated grade ranging between 0.35 to 0.5 g/t Au and 1 g/t to 1.25 g/t Ag. SRK cautions that there has been insufficient exploration to define a mineral resource. The potential quantity and grade presented here is conceptual in nature and it is uncertain if further exploration will result in discovery of additional mineral resources.



14 Adjacent Properties There are a number of mineral concessions that are considered as adjacent properties to the Vetas Gold Project area. These concessions are situated north and west of Vetas, and are held by AUX and EOM, (Figure 14.1). CB Gold understands that detailed exploration for gold deposits is being carried out by these companies as well as the development of Resource Statements and Preliminary Economic Assessment, as in the case of EOM, and Feasibility Study level work, as in the case of AUX in respect of its California properties.

To the east and adjacent of CB Gold’s Real Minera property, a private company is currently operating the El Volcan high-grade gold mines. Galway Resources Ltd. (GWY) currently holds an option to acquire this mine. Under the terms of a recently announced transaction, it is proposed that GWY shareholders will own 90%, and AUX 10% of a new company that will be created to hold these options.

To the south of the Vetas Gold Project is a privately owned property over which CB Gold understands that Continental Gold (TSX:CNL) has an option to purchase.

To the north of the Vetas Gold Project are four operating, held by private companies or title holders – La Providencia, Potosi, La Elsy, and Trompetero mines.



Figure 14.1: Adjacent Properties, Vetas Area. Prepared by CB Gold, April 2014.



15 Other Relevant Data and Information There is no other relevant data available about the Vetas Gold Project.



16 Interpretation and Conclusions The Vetas Gold Project is an advanced gold-silver exploration project. At least ten underground mines in the Vetas Gold Project area have been active in producing gold from mineralized quartz veins. CB Gold has conducted a broad exploration program, from 2009 to 2013, including surface and underground mapping and sampling, detailed structural investigations, surface channel sampling, and diamond drilling. The CB Gold diamond drilling and surface channel sampling were acquired using procedures that meet industry best practices. These programs have confirmed the existence of epithermal lode gold-silver mineralization in this area.

The gold-silver mineralization at the Vetas Gold Project occurs in veins and mineralized structures that strike northeast-southwest (El Dorado Trend), northwest-southeast (San Bartolo Trend), and northwest within the granodiorite intrusive (Real Minera). The mineralized structures can be divided into two types based on the geometry and character of the gold-silver mineralization. First, narrow, Au-Ag bearing fault-fill veins (El Dorado and San Bartolo trend) occur within the amphibolite gneisses and vary from 0.30 to 2.5 m thick and are associated with extensive alteration zones. Mapped and modeled veins extend for over 200 m along strike and down dip. Higher-grade gold and silver shoots are clearly linked to flexures in the strike and dip of the fault-fill veins. These flexures occur with both left- and right-lateral asymmetries, but their extents up down plunge are not well-delineated at this time. Second, the Au-Ag bearing stockwork veins (Real Minera) occur within the granodiorite intrusive, an area approximately 600 m long and 200 m wide. Zones of sheeted veinlets appear as swarms of parallel to sub-parallel veinlets that comprise gently dipping tabular bodies up to tens of metres thick.

The combination of mapping, sampling, and drill testing has been utilized to construct a lithology and mineralization model that is adequate for use in resource estimation and appropriate for this level of study.

The mineral resources presented in this report represent the first time disclosure of mineral resource for the Vetas Gold Project by CB Gold. The mineral resource for the Vetas Gold Project, at 0.5 g/t Au cut-off for Near Surface Stockwork mineralization, and 1.5 g/t for Narrow Fault-Fill mineralization, includes 1,172k tonnes at an average grade of 3.25 g/t gold (123,000 gold ounces) and 3.20 g/t silver (121,000 silver ounces) classified as Indicated mineral resources and 2,622k tonnes at an average grade of 3.42 g/t gold (289,000 gold ounces) and 11.49 g/t silver (969,000 silver ounces) classified as Inferred mineral resources. In order to determine the quantities of material offering “reasonable prospects for economic extraction” by an open pit, SRK used a pit optimizer and reasonable mining assumptions to evaluate the proportions of the block model (Indicated and Inferred blocks) that could be “reasonably expected” to be mined from an open pit.

It should be noted that although the resource estimate does not extend across the property boundary, the pit shell optimization is conceptual in nature and a significant portion of the conceptual shell extends over the property boundary. It is reasonable that additional land acquisition and surface rights or agreements would be obtained to accommodate this conceptual mining infrastructure and associated surface infrastructure to make the project feasible.



There are significant gaps in drilling coverage along interpreted gold-silver veins, as a result of limited drill access due to the high relief of the project area. SRK considers these gaps, as well as the interpreted down-dip extents of the veins, to be significant exploration targets. SRK has estimated an exploration target for fault-fill veins ranging between 2.0M and 3.0M tonnes at an estimated grade ranging between 2.7 g/t to 5.5 g/t Au (approximately 170 to 530 thousand ounces of gold) and 10 g/t to 30 g/t Ag (approximately 640 to 2,890 thousand ounces of silver). In addition, the estimated exploration target for stockwork veins range between 4.5M and 8.0M tonnes at an estimated grade ranging between 0.35 to 0.5 g/t Au (approximately 50 to 130 thousand ounces of gold) and 1 g/t to 1.25 g/t Ag (approximately 140 to 320 thousand ounces of silver).

SRK is not aware of any significant risks and uncertainties that could be expected to affect the reliability or confidence in the information discussed herein.



17 Recommendations SRK recommends that CB Gold consider the following to advance the Vetas Gold Project:

• In-fill drilling of gaps, identified and described in previous sections, along modeled gold-silver veins to test these targets (Table 17.1).

• Implement a focused drilling program to characterize the trend and size of higher-grade gold-silver shoots within select veins.

• Institute a more formal procedure for re-assay and review of SRM results. SRK also recommends that CB Gold send approximately 5% of the core rejects to another lab as umpire samples.

• Conduct additional metallurgical testing and begin mining studies to support a preliminary economic assessment of the Vetas Project.

Table 17.1: Recommended exploration drilling budget

RECOMMENDED EXPLORATION BUDGET US$

Diamond Drilling 1,450,000

Sample - Preparation + Assaying 280,000

Labour 450,000

Environmental Mgmt 100,000

Camp, Transport, Consumable and other 100,000

Total Vetas Drilling and Sampling (inc. Labour) 2,380,000



18 References Beland, S. (2013) 2013 Project Report for Metallurgical Testing on Samples from the CB GOLD Inc. Vetas Gold Project, Inspectorate Exploration & Mining Services Ltd.

Cardenas, E.D., 2012, Legal Opinion on Vetas Mining Titles to Mr. F. Capponi of CB Gold, December 4, 2012.

CB Gold Inc., Miscellaneous Technical Information, December 2009.

Cediel, F., Shaw, R. P. and Caceres,C. (2003). Tectonic assembly of the Northern Andean Block, In: Bartolini, C., Buffler, R.T., Blickwede, J. (Eds.), The Circum-Gulf of Mexico and the Caribbean: Hydrocarbon Habitats, Basin Formation, and Plate Tectonics, vol. 79. AAPG Memoir, pp. 815–848.

Gonzalo Dias, L.C., Colmenares, A.M., and Asdrubal, G.M.U., 2001, Codigo de Minas, Ley 685 de 2001 (Villegas, A.B. Ed): Gobernación de Norte de Santander, Secretaría de Minas y Energía, August 2001.

Lavigne, James G. (2011), Technical Report on the Vetas Gold Project, Department of Santander, Colombia, NI 43-101 report.

Mantilla, L.C.F., Valencia, V.A., Barra, F., Pinto, J., and Colegial, J., 2009, Geocronología U-Pb de los Cuerpos Porfiriticos del Distrito Aurífero de Vetas-California (Departamento de Santander, Colombia): Boletín de Geología, Vol. 31. No. 1, 2009.

Rios, A.C., 2009a, Report on Vetas Mining District Project: Internal Report for Leyhat Colombia Sucursal, November 2009.

Rios, A.C., 2009b, Report on Paramo Rico Concession: Internal Report for Leyhat Colombia Sucursal, November 2009.

Rodríguez, C., and Warden, A.J., 1993, Overview of Some Colombian Gold Deposits and Their Development Potential: Mineral. Deposita, Vol. 28, pp. 47-57.

Trippet, D and Barnett, Dr. W (2011) Structural Study and Modeling of the CB Gold Vetas Property, Santander, SRK Consulting (Canada) Inc.

Villegas, E.B., 1987a, Recursos Minerales de Colombia, Segunda Edicion, Tomo I, Minerales Preciosos, Minerales Metálicos: Publicaciones Geológicas del Ingeominas, No 1, pp. 1-564, Bogotá, 1987.

Villegas, E.B., 1987b, Recursos Minerales de Colombia, Segunda Edicion, Tomo II, Minerales Preciosos, Minerales Metálicos: Publicaciones Geológicas del Ingeominas, No 1, pp. 565-1119, Bogotá, 1987.



19 Date and Signature Page This Technical Report was written by the following “Qualified Persons” and contributing authors. The effective date of this technical report is April 2, 2014.

Table 19.1: Qualified Persons

Qualified Person Signature Date Dr. Wayne Barnett, Pri.Sci.Nat. “Original Signed” April 29, 2014 Guy Dishaw, PGeo “Original Signed” April 29, 2014

Reviewed by

“Original Signed”

Marek Nowak, PEng Principal Geostatistician

All data used as source material plus the text, tables, figures, and attachments of this document have been reviewed and prepared in accordance with generally accepted professional engineering and environmental practices

APPENDIX A Surface Channel Sampling Data

Table 1: Surface channel sampling data.

Sample Location East North Altitude Type Struct Length

(m) Au_gr/T Ag_ppm

19885 GELVES AREA 1133485.64 1300899.87 3446.25 VEIN 0.65 0.856 4.60

19886 GELVES AREA 1133493.80 1300903.67 3449.10 VEIN 0.45 1.336 67.70

19887 GELVES AREA 1133495.35 1300903.27 3450.22 VEINLETS 0.70 0.863 4.40

19888 GELVES AREA 1133490.44 1300879.28 3459.50 GNEISS ROCK 0.77 0.170 0.90




19893 GELVES AREA 1133520.12 1300894.24 3473.80 VEIN 1.15 0.131 0.50

19895 GELVES AREA 1133522.68 1300895.03 3474.85 STOCWORK 0.65 0.036 0.40



19898 GELVES AREA 1133545.22 1300893.72 3476.50 VEIN 0.55 0.645 1.70







19907 PLATF 21 1133724.38 1301006.14 3534.20 STOCWORK 1.50 0.005 0.10

19908 PLATF 22 1133725.92 1301004.39 3534.37 STOCWORK 1.80 0.006 0.10

19910 PLATF 23 1133724.77 1301003.01 3534.37 STOCWORK 1.50 0.003 0.20

19911 PLATF 24 1133723.81 1301001.86 3534.37 STOCWORK 1.50 0.003 0.10

19912 PLATF 25 1133722.84 1301000.72 3534.37 STOCWORK 1.50 0.003 0.10

19913 PLATF 26 1133721.87 1300999.57 3534.37 STOCWORK 1.50 0.003 0.10

19914 PLATF 27 1133720.61 1300998.65 3534.37 STOCWORK 1.20 0.003 0.20

19915 PLATF 28 1133719.51 1300999.11 3534.20 STOCWORK 1.60 0.003 0.10

19916 PLATF 29 1133722.58 1301081.84 3504.11 STOCWORK 1.20 0.003 0.05

19917 PLATF 30 1133722.04 1301080.77 3504.11 STOCWORK 1.35 0.006 0.10

19918 PLATF 31 1133721.42 1301079.57 3504.11 STOCWORK 1.60 0.005 0.10

19919 PLATF 32 1133720.70 1301078.14 3504.11 STOCWORK 1.00 0.111 0.20

19921 PLATF 33 1133719.96 1301077.51 3504.11 STOCWORK 2.00 0.027 0.10

19922 PLATF 34 1133718.02 1301077.01 3504.11 STOCWORK 1.60 0.009 0.10

19923 ARAÑA 3 1133676.99 1301017.64 3510.20 STOCWORK 1.60 0.003 0.20

19924 ARAÑA 4 1133678.30 1301016.73 3510.20 STOCWORK 1.60 0.005 0.10

19926 ARAÑA 5 1133679.61 1301015.80 3510.20 STOCWORK 1.40 0.006 0.10

19927 ARAÑA 6 1133681.81 1301014.89 3509.05 STOCWORK 1.40 0.007 0.30

19928 ARAÑA 7 1133683.86 1301015.73 3509.05 STOCWORK 1.40 0.003 0.20

19929 ARAÑA 8 1133685.58 1301015.99 3509.05 STOCWORK 2.00 0.037 0.10

19931 ARAÑA 9 1133686.44 1301013.71 3509.05 STOCWORK 1.00 0.003 0.10

19932 ARAÑA 10 1133697.53 1301004.30 3509.05 STOCWORK 1.00 0.003 0.20


(m) Au_gr/T Ag_ppm

19933 ARAÑA 11 1133700.80 1301000.55 3509.05 STOCWORK 1.00 0.086 0.20

19935 ARAÑA 12 1133704.81 1300991.59 3509.05 STOCWORK 1.10 0.400 0.30

19936 ARAÑA 13 1133706.50 1300989.06 3509.05 STOCWORK 1.50 0.182 0.30

19937 ARAÑA 14 1133707.71 1300986.65 3509.05 STOCWORK 1.90 0.287 0.20

19939 SAN BARTOLO 1133484.70 1300515.97 3326.30 GNEISS ROCK 0.80 0.963 2.10

19940 SAN BARTOLO 1133484.23 1300515.12 3326.30 VEIN 0.80 0.891 6.80

19941 SAN BARTOLO 1133484.72 1300514.24 3326.20 GNEISS ROCK 0.70 0.740 2.60

19942 SAN BARTOLO 3 1133497.85 1300501.58 3342.15 VEINLETS 1.00 2.053 8.20

19943 SAN BARTOLO 3 1133497.78 1300500.58 3342.15 GNEISS ROCK 0.60 0.723 5.80

19944 SAN BARTOLO

SUR 1133517.22 1300491.64 3356.50 GNEISS ROCK 1.50 0.379 3.50

19945 SAN BARTOLO

SUR 1133522.63 1300489.05 3356.00 GNEISS ROCK 1.00 0.145 0.50

19946 SAN BARTOLO

SUR 1133523.13 1300489.91 3356.00 VEIN 0.55 0.490 1.30

19948 SAN BARTOLO

SUR 1133523.64 1300490.86 3360.80 GNEISS ROCK 1.15 0.014 0.20

19949 SAN BARTOLO

SUR 1133524.76 1300488.07 3356.00 GNEISS ROCK 0.80 0.237 0.80

19950 SAN BARTOLO

SUR 1133525.32 1300488.64 3356.00 VEIN 0.70 1.115 2.30

19952 SAN BARTOLO

SUR 1133525.53 1300489.31 3360.80 GNEISS ROCK 1.10 0.229 0.30

19953 SAN BARTOLO

SUR 1133554.70 1300473.60 3368.30 GNEISS ROCK 0.50 0.716 3.40

19954 SAN BARTOLO

SUR 1133554.45 1300474.03 3368.30 VEIN 0.50 1.239 1.70

19955 SAN BARTOLO

SUR 1133557.10 1300475.38 3368.30 VEIN 0.40 1.875 10.90

19956 SAN BARTOLO

SUR 1133557.78 1300474.85 3368.30 VEIN 0.80 0.980 2.80

19958 SAN BARTOLO

SUR 1133557.62 1300473.05 3368.30 GNEISS ROCK 0.50 0.142 1.10

19959 SAN BARTOLO

SUR 1133562.61 1300473.65 3368.30 VEIN 0.45 1.151 10.60

19960 SAN BARTOLO

SUR 1133562.88 1300474.18 3368.30 GNEISS ROCK 1.15 0.131 0.10

19961 SAN BARTOLO

SUR 1133565.58 1300473.50 3368.30 VEIN 0.75 0.417 2.20

19963 BOTELLAS 4 1133335.05 1300647.18 3296.45 GNEISS ROCK 0.60 0.006 0.05

19964 BOTELLAS 4 1133336.88 1300645.79 3296.45 VEIN 0.55 1.021 8.40


19966 BOTELLAS 4 1133339.64 1300647.89 3296.45 VEIN 0.40 2.078 24.40



19971 BOTELLAS 5 1133341.31 1300637.75 3298.05 VEIN 0.40 1.169 9.30



(m) Au_gr/T Ag_ppm

19973 BOTELLAS 1133349.73 1300651.14 3296.45 GNEISS ROCK 1.40 0.003 0.20




19978 CHITARERO

PLAT 8 1133411.19 1300717.54 3353.10 GNEISS ROCK 0.85 0.008 0.05

19979 CHITARERO

PLAT 8 1133411.85 1300717.00 3353.10 GNEISS ROCK 0.55 0.011 0.05

19980 CHITARERO

PLAT 8 1133412.27 1300716.65 3353.10 GNEISS ROCK 1.00 0.005 0.05

19981 CHITARERO 1133424.25 1300711.64 3356.50 GNEISS ROCK 0.80 0.239 0.60







19989 HIGUERON 1133372.85 1300595.74 3319.50 GNEISS ROCK 0.50 0.021 1.30







19997 HIGUERON SUR 1133426.69 1300620.45 3342.50 GNEISS ROCK 0.90 0.250 0.70

19998 HIGUERON SUR 1133426.18 1300619.63 3342.50 GNEISS ROCK 0.50 0.702 0.70

19999 BOTELLAS SUR 1133513.95 1300649.95 3388.50 GNEISS ROCK 0.70 0.026 0.20









26590 BOTELLAS SUR 1133598.39 1300671.88 3442.80 VEIN 0.60 0.342 0.50

26592 BOTELLAS SUR 1133598.80 1300669.90 3442.80 VEIN 0.30 2.146 1.00



26595 LAS PEÑAS 1133598.01 1300623.90 3406.50 GNEISS ROCK 1.00 0.526 2.10

26596 LAS PEÑAS 1133598.67 1300623.15 3406.50 VEIN 0.60 1.538 2.80

26597 LAS PEÑAS 1133599.19 1300622.53 3406.50 VEIN 0.45 3.323 19.70


(m) Au_gr/T Ag_ppm




26602 EL BRINCO 1133503.96 1300617.93 3356.20 GNEISS ROCK 0.50 0.026 0.40





26609 EL BRINCO 1133428.19 1300611.71 3342.50 VEIN 1.00 1.303 4.90


26611 TESORITO SW 1133131.88 1300749.96 3261.90 GNEISS ROCK 1.27 0.127 0.90



26615 TESORITO SW 1133135.79 1300750.76 3261.90 VEIN 1.15 1.261 2.80


26618 Tesorito SW

TUNNEL 1133143.53 1300754.64 3266.97 VEIN 0.45 0.165 0.70

26619 Tesorito SW

TUNNEL 1133143.97 1300754.52 3266.97 VEIN 0.60 7.892 25.70

26621 LA PETER 1133133.07 1300810.08 3270.50 VEINLETS 1.10 0.179 1.20

26622 LA PETER 1133130.72 1300819.12 3270.50 VEIN 0.50 22.800 6.80

26623 LA PETER 1133130.63 1300818.63 3270.50 VEIN 0.55 1.454 1.30

26624 LA PETER 1133132.55 1300818.28 3270.50 VEIN 1.05 0.439 1.20

APPENDIX B Project Drill Data

Table 1: Vetas gold project drill data

Hole-Name Property Easting Northing Elevation Azimuth DIP Total_Depth

AR-DDH11-034 Arias 1132808.06 1300447.72 3211.06 103 -65 455.69

AR-DDH11-036 Arias 1132807.61 1300447.70 3211.07 103 -80 481.58

AR-DDH11-038 Arias 1132806.01 1300448.00 3211.02 283 -85 419.10

AR-DDH11-039 Arias 1132808.47 1300447.74 3211.06 103 -55 452.62

AR-DDH11-041 Arias 1132805.47 1300448.07 3211.05 283 -75 478.23

AR-DDH11-050 Arias 1132807.45 1300446.89 3211.24 154 -69 257.55

AR-DDH11-052 Arias 1132807.95 1300446.80 3211.08 166 -77 251.46

AR-DDH11-055 Arias 1132808.14 1300447.15 3211.00 132 -66 257.55

AR-DDH11-058 Arias 1132808.37 1300446.27 3211.30 145 -76 272.79

AR-DDH11-060 Arias 1132808.77 1300446.22 3211.38 137 -76 249.93

AR-DDH11-062 Arias 1132807.71 1300448.70 3211.30 97 -74 265.17

AR-DDH11-065 Arias 1132807.87 1300449.79 3211.01 70 -80 265.41

AR-DDH11-068 Arias 1132808.23 1300448.10 3211.10 111 -72 257.55

AR-DDH11-070 Arias 1132807.15 1300449.27 3211.06 50 -77 352.04

ED-DDH11-024 El Dorado 1132735.91 1300349.80 3279.74 98 -60 475.48

ED-DDH11-026 El Dorado 1132735.67 1300349.76 3279.68 98 -70 484.63

ED-DDH11-028 El Dorado 1132735.37 1300349.71 3279.62 98 -85 446.53

ED-DDH11-030 El Dorado 1132733.44 1300349.89 3279.74 278 -85 454.15

ED-DDH11-032 El Dorado 1132733.05 1300349.86 3279.55 278 -75 445.00

ED-DDH11-044 El Dorado 1132808.65 1300316.08 3256.41 75 -51 454.15

ED-DDH11-047 El Dorado 1132808.28 1300315.96 3256.33 75 -65 470.18

ED-DDH11-073 El Dorado 1132736.01 1300349.90 3279.71 125 -60 405.38

ED-DDH11-076 El Dorado 1132735.79 1300349.96 3279.65 125 -75 434.34

ED-DDH11-079 El Dorado 1132735.69 1300349.91 3279.70 140 -60 272.18

ED-DDH12-083 El Dorado 1132641.18 1300184.45 3329.88 120 -60 413.00

ED-DDH12-085 El Dorado 1132641.18 1300184.45 3329.88 120 -75 425.19

ED-DDH12-087 El Dorado 1132641.18 1300184.45 3329.88 0 -90 536.44

ED-DDH12-090 El Dorado 1132641.18 1300184.45 3329.88 300 -80 563.88

ED-DDH12-093 El Dorado 1132641.18 1300184.45 3329.88 140 -60 414.52

ED-DDH12-095 El Dorado 1132641.18 1300184.45 3329.88 140 -75 454.15

ED-DDH12-098 El Dorado 1132641.18 1300184.45 3329.88 140 -88 527.30

ED-DDH12-099 El Dorado 1132641.18 1300184.45 3329.88 330 -80 510.74

ED-DDH12-103 El Dorado 1132641.18 1300184.45 3329.88 160 -60 483.10

ED-DDH12-106A El Dorado 1132641.18 1300184.45 3329.88 160 -75 411.48

ED-DDH12-109 El Dorado 1132641.18 1300184.45 3329.88 160 -87 460.24

ED-DDH12-112 El Dorado 1132641.18 1300184.45 3329.88 93 -60 411.48

ED-DDH12-115 El Dorado 1132641.18 1300184.45 3329.88 93 -75 452.62

ED-DDH12-136 El Dorado 1132579.87 1299975.38 3427.05 0 -90 365.76

ED-DDH12-138 El Dorado 1132579.87 1299975.38 3427.05 125 -75 435.86

ED-DDH13-144 El Dorado 1132579.87 1299975.38 3427.05 97 -60 438.91


ED-DDH13-146 El Dorado 1132579.87 1299975.38 3427.05 97 -75 420.62

ED-DDH13-148 El Dorado 1132579.87 1299975.38 3427.05 109 -58 440.43

ED-DDH13-150 El Dorado 1132579.87 1299975.38 3427.05 108 -75 419.10

ED-DDH13-151 El Dorado 1132579.87 1299975.38 3427.05 304 -75 597.40

ED-DDH13-153 El Dorado 1132579.87 1299975.38 3427.05 300 -81 521.20

ED-DDH13-155 El Dorado 1132579.87 1299975.38 3427.05 280 -75 630.21

ED-DDH13-157 El Dorado 1132579.87 1299975.38 3427.05 140 -60 94.48

LD-DDH11-043 Los Delirios 1132928.35 1300814.28 3158.63 125 -55 478.53







LP-DDH12-129 La Peter 1133148.37 1300627.48 3209.93 150 -60 408.43

LP-DDH12-131 La Peter 1133148.37 1300627.48 3209.93 0 -90 481.58

LP-DDH12-133 La Peter 1133148.37 1300627.48 3209.93 330 -75 301.75

LP-DDH12-134 La Peter 1133148.37 1300627.48 3209.93 130 -60 284.98

RM-DDH10-001 Real Minera 1133648.24 1300701.38 3476.66 165 -65 198.25



























RM-DDH11-031A Real Minera 1133608.38 1301105.31 3446.74 180 -51 425.19























RM-DDH12-104A Real Minera 1133608.38 1301105.31 3446.74 200 -55 493.77





























SA-DDH12-140 San Antonio 1133558.15 1299934.34 3474.71 122 -50 495.30

SA-DDH12-142 San Antonio 1133558.15 1299934.34 3474.71 122 -70 569.97

SI-DDH11-063 Santa Isabel 1132868.27 1300700.69 3100.10 150 -60 463.29

























APPENDIX C SRM Results

Gold SRM Results Figure 1: HiSilP1

Figure 2: OXE106

Figure 3: OxE74

Figure 4: OxJ64

Figure 5: OxJ68

Figure 6: OxJ80

Figure 7: OxJ95

Figure 8: OxP61

Figure 9: OxP76

Figure 10: SF45

Figure 11: SF57

Figure 12: SH65

Figure 13: SJ63

Figure 14: SL61

Figure 15: SP49

Figure 16: SP59

Figure 17: SQ47

Silver SRM Results Figure 18: SP49

Figure 19: SQ47

CERTIFICATES OF QUALIFIED PERSONS

CERTIFICATE OF QUALIFIED PERSON

To accompany the report entitled “Independent Technical Report on the Vetas Gold Project, Santander Department, Republic of Colombia”, dated April 29, 2014, and effective April 2, 2014 (the “Technical Report”):

I, Guy Dishaw, residing at 689 Abbott Street, Vancouver, Canada do hereby certify that:

1) I am employed as a Senior Geologist at SRK Consulting (Canada) Inc. with an office at 2200-1066 West Hastings Street, Vancouver, BC, V6E 3X2.

2) I am a graduate of the University of Manitoba in 1999 with a B.Sc. (Hon.) degree in Geology. I have practiced my profession continuously since 1999. My relevant experience for the purpose of the Technical Report is:

a) I have worked as a mining/resource geologist for several major mining companies including Boliden, Cameco Corporation and BHP Billiton. I have been involved in mine and exploration geology, geological modeling, and resource estimation of base and precious metals, and uranium.

b) As a geological consultant, I have completed geological models and grade estimation of several epithermal precious metal deposits.

As a result of my experience and qualifications, I am a Qualified Person as defined in National Instrument 43-101 Standards of Disclosure of Mineral Projects (NI 43-101).

3) I am registered as a Professional Geoscientist in the Provinces of British Columbia (License# 36183);

4) I have not personally inspected the subject project and have relied upon the site visit completed by Dr. Wayne Barnett.

5) I have read the definition of “qualified person” set out in National Instrument 43-101 and certify that by virtue of my education, affiliation to a professional association and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of National Instrument 43-101 and this technical report has been prepared in compliance with National Instrument 43-101 and Form 43-101F1.

6) As a qualified person, I am independent of the issuer as defined in Section 1.5 of National Instrument 43-101.

7) I am the co-author of this report and am responsible for Sections 1 to 19 and accept professional responsibility for those sections of this Technical Report.

8) I have been involved in the Vetas Gold Project since October 2013.

9) I have read National Instrument 43-101 and confirm that this technical report has been prepared in compliance therewith.

10) SRK Consulting (Canada) Inc. was retained by CB Gold Inc. to prepare a technical report of the Vetas Gold Project. In conducting the assessment, CIM “Best practices” and Canadian Securities Administrators National Instrument 43-101 guidelines were used. The preceding report is based on a site visit, a review of project files and discussions with CB Gold Inc. personnel.

11) That, at the effective date of the Technical Report, to the best of my knowledge, information and belief, this technical report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading.

Vancouver, British Columbia “Original Signed”

April 29, 2014 Guy Dishaw, Senior Geologist SRK Consulting (Canada) Inc.

CERTIFICATE OF QUALIFIED PERSON

To accompany the report entitled “Independent Technical Report on the Vetas Gold Project, Santander Department, Republic of Colombia”, dated April 29, 2014, and effective April 2, 2014 (the “Technical Report”):

I, Wayne Peter Barnett, residing at 1995 Hill Drive, North Vancouver, Canada do hereby certify that:

1) I am employed as a Principal Consulting Geologist and Practice Leader with SRK Consulting (Canada) Inc. with an office at 1066 West Hastings Street, Vancouver, BC, Canada.

2) I graduated with a Bachelor of Science (Honours) degree in Geology from the University of Cape Town in 1995, a Master of Science degree in Geology from the University of Cape Town in 1998, and a Doctor of Philosophy degree in Geology from the University of Kwa-Zulu Natal in 2006.

3) I have practiced my profession continuously since 1996 and have been employed as a either a geologist or engineer geologist at three mining operations over a period of 8 years, as geologist in exploration for two years, and as a consulting geologist for 6 years including projects in Africa, North America, South America, Australia and Asia.

4) I am a Professional Natural Scientist in the field of practice of Geological Science, registered as a member of the South African Council for Natural Scientific Professions, South Africa, Reg. No. 400237/04.

5) I have personally inspected the Vetas project from the 9th to the 13th December, 2011.

6) I have read the definition of “qualified person” set out in National Instrument 43-101 and certify that by virtue of my education, affiliation to a professional association and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of National Instrument 43-101 and this technical report has been prepared in compliance with National Instrument 43-101 and Form 43-101F1.

7) As a qualified person, I am independent of the issuer as defined in Section 1.5 of National Instrument 43-101.

8) I am the co-author of this report and am responsible for the site visit described in the Technical Report.

8) I have been involved in the Vetas Gold Project since September 2011, overseeing development of the structural geology model, undertaking geological modelling and overseeing aspects of the data quality assurance and eventual resource estimation.

9) I have read National Instrument 43-101 and confirm that this technical report has been prepared in compliance therewith.

10) SRK Consulting (Canada) Inc. was retained by CB Gold Inc. to prepare a technical audit of the Vetas Gold Project. In conducting our audit a gap analysis of project technical data was completed using CIM “Best practices” and Canadian Securities Administrators National Instrument 43-101 guidelines. The preceding report is based on a site visit, a review of project files and discussions with CB Gold Inc. personnel.

11) That, at the effective date of the technical report, to the best of my knowledge, information and belief, this technical report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading.

Vancouver, British Columbia “Original Signed”

April 29, 2014 Dr. Wayne P. Barnett, Practice Leader & Principal Geologist SRK Consulting (Canada) Inc.

vetas tech report

Documents