MICONS RECOMMENDATIONS good read
1. Micon’s QP recommends that Asia Broadband completes a total review of the documentation related to the property transfer process, from the original title inception in 1997, up to the agreement transferring the mineral rights of the property to Asia Broadband. However, the process of reviewing the transfer process may require a longer period of time, due to the current
situation with COVID, as the offices of the mining agencies and the public mining registry are working at a reduced capacity and the current government has placed a lower priority of the
mining sector.
2. Micon’s QP recommends that Asia Broadband obtains a certified copy of current Mining Title directly from the Mexican Mining Agency. If necessary, a program of verification/correction completed by an Authorized Professional Surveyor (Perito Minero) must be completed to
properly define the location of the principal point and surface extension of the property.
3. Micon’s QP recommends that Asia Broadband addresses the situation with the indigenous community of Saycota, such that access to the Project is secured and guaranteed. It is further
recommended that any future commitments between the parties be written into the agreements, so that the Project can be moved to more advanced stages should positive results
be obtained during the exploration stage. The agreements must be endorsed by a representative of the federal government office in charge overseeing these agreements so disputes that arise may be effectively resolved to the benefit of both parties.
4. Micon’s QP recommends that drilling activates are permanently supervised by a professional
experienced geologist. The supervision would include site location, rig orientation and core box
control and management at the Project site.
5. Micon’s QP recommends that a detailed geophysical survey is conducted in support of the
planning for any future drilling campaigns. The geophysical survey may be also used as support
during deposit modelling and resource estimation.
6. Micon’s QP recommends the implementation of a chain of custody system, to properly
document the process of transferring/transporting of sensitive materials, such as the core
boxes and samples, from the Bonanza Project to the Asia Broadband facilities in Tlajomulco.
The chain of custody must include the transportation of samples from the core shack to the laboratory.
7. Micon’s QP recommends that Asia Broadband includes a protocol for the systematic collection
of bulk density data in any future core drilling program.
8. Micon’s QP recommends conducting definitive metallurgical testwork using a representative mineral sample, and certified or recognized laboratories to validate the results from the current laboratories. Other metals of potential economic interest, such as lead, zinc and copper, should be considered for analysis and in future resource estimations. Subsequent metallurgical testwork should be focused on optimizing the process, solving the identified problem with zinc, defining the parameters of construction or refurbishment of the existing metallurgical plant, to adequately refine the process to account for the identified/defined mineral features, establish the requirements for additional equipment (capital costs) and estimate operating costs, that will be used in a future economic evaluation.
9. Micon’s QP recommends conducting a rock mechanics study in order to define the base case parameters to define the appropriate mining method. Future mine designs and mining plans will be based on and supported by the information provided by this study.
