CarmenTechRpt 2006

PROJECT SUMMARY
CARMEN COPPER-GOLD PROJECT
REGION III, CHILE
Latitude 26o 50’S and Longitude 69o 57’W
UTM N7,031,000 – E405,000
TECHNICAL REPORT
FORM 43-101F1
For
Colorado Minerals Inc.
530 Bay Street, Suite 1100
Toronto, Ontario, M5H2S8, Canada
Prepared By:
Michael Easdon
Oregon Registered Professional Geologist (G243)
Providencia 2330, Of. 51, Santiago, Chile
Email: mikeasdon@gmail.com
Tel: 569-280-4433
Effective Date: March 28th, 2006
TABLE OF CONTENTS
Page No.
1.0 EXECUTIVE SUMMARY ......................................................................................................5
2.0 INTRODUCTION AND TERMS OF REFERENCE ...............................................................8

2.1 GENERAL .............................................................................................................8
2.2 UNITS AND CURRENCY......................................................................................8
2.3 TERMS AND DEFINITIONS..................................................................................8
2.4 SOURCES OF INFORMATION.............................................................................9
3.0 RELIANCE ON OTHER EXPERTS...................................................................................9
4.0 PROPERTY, DESCRIPTION AND LOCATION..................................................................10

4.1 LOCATION ..........................................................................................................10
4.2 DESCRIPTION ....................................................................................................11
4.3 LEASE/PURCHASE SUMMARY.........................................................................13
4.4 ENVIRONMENTAL..............................................................................................14
5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES,

INFRASTRUCTURE AND PHYSIOGRAPHY .................................................................15
5.1 ACCESS..............................................................................................................15
5.2 CLIMATE AND PHYSIOGRAPHY.......................................................................15
5.3 LOCAL RESOURCES AND INFRASTRUCTURE ..............................................15
6.0 PROJECT HISTORY ..........................................................................................................15

6.1 RECENT WORK ..................................................................................................15
7.0 GEOLOGY ..........................................................................................................................27

7.1 REGIONAL GEOLOGY .......................................................................................27
7.2 REGIONAL GEOLOGY.......................................................................... ……….. 29
7.3 PROJECT GEOLOGY.........................................................................................30
8.0 DEPOSIT TYPE................................................................................................................35
9.0 MINERALIZATION - STYLE AND OCCURRENCE..........................................................36

9.1 MINERALIZATION TYPE ....................................................................................36
9.2 TARGET AREAS.................................................................................................36
10.0 EXPLORATION.................................................................................................................37
11.0 DRILLING.........................................................................................................................38
12.0 SAMPLE METHOD AND APPROACH ..........................................................................44
13.0 SAMPLE PREPARATION, ANALYSES AND SECURITY.............................................45
14.0 DATA VERIFICATION ...................................................................................................46
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15.0 ADJACENT PROPERTIES............................................................................................49
16.0 MINERAL PROCESSING AND METALLURGICAL TESTING......................................49
17.0 MINERAL RESOURCE AND RESERVE ESTIMATIONS .............................................49
18.0 OTHER RELEVANT DATA AND INFORMATION .........................................................49
19.0 INTERPRETATION AND CONCLUSIONS....................................................................49
20.0 RECOMMENDATIONS AND BUDGET .........................................................................52
21.0 REFERENCES ..............................................................................................................54
22.0 CERTIFICATE OF QUALIFICATION.............................................................................55
FIGURES
Figure 4.1 – Project Location and Access Map..........................................................................10

Figure 4.2 – Carmen Project Map showing Topography, Concessions and Access within
And through the Property .......................................................................................10
Figure 4.3 – Project Concessions .............................................................................................11
Figure 6.1 – Carmen Project Drill Hole Locations .....................................................................21
Figure 6.2 – Log Normal Histogram for CDDH Drill Holes – Cu values >/=0.1% Cu ................22
Figure 6.3 – Log Normal Histogram for CD Drill Holes – Cu values >/=0.1% Cu .....................22
Figure 6.4 – Log Normal Histogram for CDDH Drill Holes – Au Values ...................................23
Figure 6.5 – Log Normal Histogram for CD Drill Holes – Au Values.........................................24
Figure 7.1 – Inca de Oro District Location relative to the AFT and the Domeyko Fault
Systems ......................................................................................................................................28
Figure 7.2 – Inca de Oro District Geology.................................................................................29
Figure 7.3 – Upper Cretaceous Metallogenic Belt of Chile .......................................................30
Figure 7.4 – Carmen Project Geologic Map..............................................................................32
Figure 7.5 – Carmen Project – Cross Section developed by Southwestern showing their
Interpreted Mineral Zones .....................................................................................33
Figure 7.6 – Carmen Project –Assay Cross Section showing the MNI interpreted Mineral
Intervals - Section N7.031.050..............................................................................34
Figure 9.1 – Carmen Project Exploration Potential ...................................................................37
Figure 12.1 – Carmen Project MNI Chip Channel and Trench Samples Data............................44
TABLES
Table 4.1 – Carmen Property Coordinates .................................................................................12

Table 4.2 – Carmen Property Concessions Data........................................................................12
Table 4.3 – Carmen Project Mining Concessions Filing Data.....................................................13
Table 6.1 - Carmen Project – MNI Chip Channel and Trench Sample Results .........................17
Table 6.2 - Carmen Project - Orion Diamond Drill Hole Data .....................................................19
Table 6.3 – Carmen Project – Southwestern Diamond Drill Hole Data.......................................19
Table 6.4 – Comparative Statistics – Copper Assays .................................................................23
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Table 6.5 – Comparative Statistics – Gold Assays .....................................................................24
Table 6.6 – José Carrera Mineral Potential Estimations .............................................................26
Table 7.1 – Stratigraphic Column for the Inca de Oro District.....................................................29
Table 12.1 – Orion Significant Drill Hole Intercepts ....................................................................40
Table 12.2 – Southwestern (1997) Significant Drill Hole.............................................................41
Table 14.1 – Carmen Project – M. Easdon Character Sample Descriptions ..............................47
Table 14.2 – Carmen Project – M. Easdon Character Sample Assays ......................................48
Table 14.3 – Carmen Project – Easdon Drill Hole Location Verification Results ........................48
Table 19.1 – Carmen Potential Mineral Deposit Estimates.........................................................50
Table 20.1 – Phase I Exploration Budget – June, 2006 to November, 2006 ..............................53
Table 20.2 – Phase II Exploration and Development Budget – January, 2007 to August,
2007 ......................................................................................................................53
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1.0 EXECUTIVE SUMMARY
Mr. Lewis Lawrick, President of Colorado Minerals Inc. (Colorado), a currently unlisted
Toronto based company, has retained Michael Easdon to prepare a report which
describes the work performed and the results which were obtained by prior mining
companies and which work was designed to explore for, and if warranted, to develop
potential mineral deposit within Carmen Project area, Region III, Chile. This independent
report has been prepared consistent with the requirements as listed in National
Instrument 43-101. Colorado, which optioned the Carmen property in November, 2005,
has not conducted any exploration at Carmen to date.
The Carmen Copper-Gold Project is located approximately 1,100 kilometers north of

Santiago, the capital city of Chile, and about 100 kilometers north of the City of Copiapo,
Region III, Chile. The mineral concessions are approximately centered on Latitude 26o
50’S and Longitude 69o 57’W, or UTM coordinates N7,031,000 – E405,000 at a mean
elevation of 2100 meters. Colorado has entered into Option to Purchase agreements
with two property holders with staged payments totaling US $5,570,000 over a maximum
of 54 months (to November, 2010) to acquire 100% of the concessions. The mining
concessions cover an area totaling 962 hectares. Access to the Carmen project from
Copiapo is via paved highway and minor un-maintained dirt roads. Copiapo and Diego
del Almagro can provide the requisite housing required for a work force and staff. Water
will have to be developed and/or acquired; power is readily available and the National
Power Grid is located within 8 miles of the property. Supplies can be obtained from
Copiapo, Antofagasta and Santiago as needed. Copiapo and other nearby towns have
well trained and experienced miners and a more than adequate workforce is available.
Port facilities exist at Caldera and Chanaral, ~180 and 90 kms respectively. There is
adequate ground within and about the Carmen concessions to easily accommodate any
potential mining operation, including the plant site, waste and tailings dumps.
Under Chilean environmental regulations, as they apply to mining exploration activities,

Colorado has not been required to initiate environmental permitting to date; it is
anticipated that Colorado will have no difficulty in obtaining the requisite work, and other
permits, to develop and mine the property at the appropriate time. Chile is a mining
oriented country and mining is both socially and politically viewed favorably.
The Carmen Property, and the contained and currently defined potential mineral deposit,
is located at the southern end of the Inca de Oro mining district. This district has
probably been producing gold since the time of the Inca’s, or over 500 years ago.
Historic, and more current, potential mineral estimates, which have not been prepared
consistent with CIM/NI 43-101 requirements, have been variously prepared since 1998
to the present. The potential quantities and grades indicated are conceptual in nature
and there has not been sufficient exploration to define a mineral resource on the
property. It is uncertain if further exploration will result in the discovery of such mineral
resources on the property. The following Table (taken from Section 19 of the current
report) summarizes the ranges of tonnages and grades that have been estimated for the
mineralization that occurs on the Colorado leased ground - ~64% of the total estimated
by Carrera - (Carmen/Oky) and the ~ 34% that occurs on the Providencia concessions
(and extra-lateral rights) which are located on the north side of the mineralization. These
estimates are: not CIM/NI 43-101 compliant; have not been reviewed nor verified by a
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“Qualified Person”; and, Colorado has not considered categorizing any of these
estimates as resources.
Carmen Potential Mineral Deposit Estimates

Cut Off Grade
Tons
Equivalent Cu % Au g/t
1 g/t Au 15,000,000 0.4 0.7
0.7 g/t Au 30,000,000 0.3 0.5

1 g/t Au 29,000,000 0.4 0.7
0.7 g/t Au 41,000,000 0.4 0.6
0.4% Cu 13,000,000 0.4 0.6
Orion was apparently the first company to recognize, and explore for, the porphyry
copper-gold potential at Carmen starting in 1988. At this time they conducted an
exploration program comprising trench sampling followed up by a drilling campaign
which comprised 23 (2,988.5 meters) vertical diamond holes grid drilled over an
approximate 350 m x 350 m area. The only data available comprises electronic assay
data of the drilling. Orion dropped its option on the Carmen Property in 1990.
Southwestern (1996-1998) optioned the Carmen Property and completed the following
work: additional trenching and sampling, geological mapping, a ground magnetometer
survey, and drilling. Southwestern diamond drilled a total of 11,796.3 meters in 33 holes
generally within the same area as drilled by Orion, but on a more consistent
(approximately) 50 meter grid spacing, and to a maximum of 550 meters depth. The
Southwestern holes were variously drilled vertically and with easterly and westerly
orientations. Prior to dropping it option in 1988, Southwestern performed a potential
mineralization estimation which is included in the above tabulated “Potential Mineral
Deposit Estimates” where they used a copper equivalent cutoff, as opposed to the gold
equivalent cutoff grades used by other groups.
MNI Ingenieros (Santiago) optioned the property during the period 1999 through 2003.
During this time, they extensively compiled the available data and took a number of
channel chip and trench samples, as well as generating their own estimations of the
potential mineral deposit.
There is no information available with regard to how much has been spent on
exploration at Carmen by the three above mentioned companies.
A significant amount of exploration work has been completed on the Carmen property to
date including geological mapping, a magnetometer survey, extensive trenching and
sampling, diamond drilling (14,785 meters in 56 holes), and an extensive compilation of
the data that has been accumulated to date and which has resulted in the definition of a
low grade copper-gold potential mineral deposit. This mineralization has not been fully
delineated, and significant exploration potential exists to the south and to the north, as
well as to the immediate west of the currently defined mineralization. The proposed (and
budgeted) work is intended to at the very least double dimensions of the Carmen
potential mineral deposit, as well as to allow the development of resource estimates
which will be CIM/NI 43-101 compliant.
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The current exploration and development concept is based on the results of the prior
work and studies. This work has determined that the Carmen copper-gold mineralization
is hosted within an hornblende tonalite/ feldspar porphyry intrusive complex into
andesitic volcanics of the La Negra Punta de Cobre(?) Fm and metasomatized
tuffaceous and calcareous sediments (skarns) of the Chañarcillo and Cerrillos
Formations. The intrusive/volcanic/sedimentary host rocks variously show alteration
which is characteristic of a low sulfidation system and in which there is widespread
development of adularia (Llaumett)-illite-quartz-(silica)-chlorite-calcite. Southwestern
logged extensive zones of potassic alteration which they attributed to the development of
K-feldspar (as opposed to adularia) and locally extensive development of biotite in
fractures and stringers, as well as zones of strong silicification, argillization and
peripheral propyllitic alteration. The copper-gold mineralization is contained within at
least three sets of crosscutting quartz-calcite-magnetite-(hematite)+sulfides
veinlets/veins. The sulfides comprise chalcopyrite+bornite+pyrite+pyrhottite
+molybdenite. A relatively minor percentage of the mineralization is disseminated - 2-3%
combined chalcopyrite and pyrite. Disseminated magnetite (+ hematite) is common.
The emplacement of the tonalite/mineralization is closely associated with the through-

going northerly trending Canada fault and the intersection of a series of westerly
trending faults. The exploration potential is considered to be associated with the
northerly trending fault/mineralized stockwork zone which extends to the south of the
Carmen mineral zone for at least 250 meters and continues northerly for at least 500
meters (of which only 200 meters lies on Colorado-held ground).
Oxidation extends from the surface to between 30 and 60 meters below the surface. The
principal copper oxide minerals are chrysocolla and atacamite.
The author visited the Carmen property on December 21st, 2005 and verified that the
property had been previously trenched and drilled. The author took 3 character samples
(rock chip and core) to generally confirm the mineralization. No samples rejects or pulps
have been retained and no Orion core was available for review. Approximately 80% of
the Southwestern core is available, selected intervals of which were reviewed and check
logged by the author.
Based on a statistical evaluation of the two sets of drill hole data, the author considers
that the drill hole assay (copper-gold) data can most probably be used to estimate
resources at the appropriate time. However, significant confirmatory drilling will have to
be performed to assure that the previously performed drilling can be used with
confidence – no down-the-hole surveying was performed to track the trace of the drill
holes. This failure may impact on the projection of mineral zones, particularly at depth.
Every effort should be made to acquire original data from Southwestern, Orion (now
incorporated into Phelps Dodge) and from MNI. A review of the very limited original
assay data available for the Southwestern drilling indicated a significant percentage of
data entry errors.
A significant amount of exploration work has been completed on the Carmen property to
date including geological mapping, a magnetometer survey, extensive trenching and
sampling, diamond drilling (14,785 meters in 56 holes), and an extensive compilation of
the data that has been accumulated to date and which has resulted in the definition of a
low grade copper-gold potential mineral deposit. This mineralization has not been fully
7
delineated, and exploration potential exists to the south and to the north, as well as to
the immediate west of the currently defined mineralization. The proposed (and
budgeted) work is intended to, at the very least, double the dimensions of the Carmen
potential mineral deposit, which if successful will allow the development of resource
estimates which will be CIM/NI 43-101 compliant.
Colorado has budgeted a total of US $4,782,000 for the completion of the Phase I and II
exploration programs at Carmen. The Phase II exploration and development program is
contingent on the outcome of the Phase I exploration program. The Phase I program
(projected for the period January-July, 2007 and to cost US $1,350,000) comprises an
in-depth evaluation of the available data, trenching and sampling, and re-sampling of a
number of the previously excavated trenches, within the zones considered to have
potential to extend the Carmen mineralization, as well as a 4,000 meters diamond
drilling program. The Phase II program (projected for the period August, 2007 to June,
2008 and to cost US $3,432,000) comprises continued exploration/development
diamond drilling (15,000 meters) and includes metallurgical testing with the objective of
defining a viable and CIM/NI 43-101 compliant mineral resource.
This report is considered to be valid effective through to March 28th, 2006.
2.0 INTRODUCTION AND TERMS OF REFERENCE
2.1 GENERAL: Michael Easdon was requested by Mr. Lewis Lawrick, President of
Colorado Minerals Inc., to review the work that was performed by Orion, Southwestern
and MNI during the periods 1988-1990, 1996-1997 and 2000-2003 respectively and prior
to Colorado’s participation in November, 2005. The author was also contracted to make
a site visit with the intent of confirming that the work as described was performed
consistent with industry standards; and, to prepare a Technical Report on the work that
has been performed on the Carmen Project, and that is consistent with the current
Canadian National Instrument 43-101 regulations and which confirms that the Carmen
Project is a property of “merit”. This report follows the layout and format for technical
reports as described in Form 43-101F1. Mr. Easdon visited the project area on
December 21st, 2005.
2.2 UNITS AND CURRENCY: All measurements are in metric units. The UTM datum
used in this report is “Provisional Sudamericano PSAD-56 Zona 19. Dollar (US$)
amounts are in United States dollars, unless otherwise stated. Chilean pesos are
indicated as CH$. The Chilean inflation adjustment non-monetary unit is abbreviated as
UTMs. Copper is expressed as Cu and in ppm or percent; Gold and silver are expressed
as Au and Ag respectively, and in grams per tonne” which is abbreviated as g/t. Parts
per million (ppm) is interchangeable with grams per tonne (g/t). When ounces are
referred to, the metric equivalent is stated in parentheses. Molybdenum is expressed as
Mo and in ppm. Tons refer to metric tonnes of ore or of copper or gold.
2.3 TERMS AND DEFINITIONS: Carmen refers to the Carmen Copper-Gold Project
and is the subject of this report; Colorado refers to Colorado Minerals Inc. a currently
unlisted Toronto based company, or to its Chilean subsidiary Inversiones La Veta
Limitada; GAM refers to Gestion de Activos Mineros S.A. the underlying owners of the
Carmen concessions; Rojas refers to Oscar Rojas the underlying owner of the Oky
Concessions; Southwestern refers to Cia. Minera Southwestern Chile Limitada, the
8
Chilean subsidiary of Southwestern Resources Corp, Vancouver; Orion refers to the
Minera Orion Chile Limitada, which originally (ca. 1987) was formed by Echo Bay
Exploration, and which then underwent a series of transformations before becoming a
Chilean subsidiary of Cyprus-Amax Minerals and which was then subsequently
absorbed by Phelps Dodge Copper Corporation Apparently, Orion was still held by
Echo Bay at the time that it conducted exploration at the Carmen Property; SBX refers to
the Colorado contracted Santiago, Chile based geological consulting company SBX
Consultores Ltda which is responsible for the compilation and evaluation of the data
generated to date on behalf of Colorado.
2.4 SOURCES OF INFORMATION: This report is based on various geological reports,

maps, assorted geotechnical reports and papers, published government reports,
company letters and memorandums, and public information as listed in the “References”
section at the conclusion of this report. The author has assumed that all of the
information and technical documents listed in the “References” section are accurate and
complete in all material respects.
3.0 RELIANCE ON OTHER EXPERTS
The author has relied upon information provided by Colorado’s attorney, Antonio Ortuzar
Jr., of Baker Mackenzie Chile, that describes the purchase option agreements into which
Colorado entered and on data that generally describes the exploration rights, obligations
and concession dimensions and coordinates, and which confirms that the appropriate
concession payments “patentes” have been properly paid and that the property is
current, and that the appropriate option payments have been made to the underlying
owners and are current. The author is not competent to comment on the ownership of
the mining rights. The author did not conduct an in-depth review of mineral titles and
ownership; consequently, the author does not express an opinion on this subject.
Furthermore, the author does not accept any responsibility for errors pertaining to this
information.
The author has further relied on: reports and data provided by SBX which describes the
prior work and history of the Carmen Project and property and which is that work
performed by Orion, MNI and primarily by Southwestern. Colorado has not conducted
any work to date on the Carmen property, other than the appropriate due diligence work
performed prior to acquisition. The author has confirmed that the property was diamond
drilled and that the property was subjected to trenching.
All other aspects of the Carmen Property that are reported on in this document have
been reviewed, verified, and/or commented upon by the author. This document is
intended to provide the reader with the factual data available for the Carmen Property.
Any opinions by the author are specifically indicated as opinions in the relevant sections
of this report.
It is the author’s opinion that the data, accuracy and completeness of the data which
have been made available are such that they provide a reasonable representation of the
project. The author’s opinions contained herein are based on information provided to the
author by Colorado, or its representatives. The author believes the information provided
is verifiable in the field and is a reasonable representation of the mineralization (potential
mineral deposit) and the exploration potential.
9
The author is not an insider, associate or an affiliate of Colorado. The results of the
technical review by the author are not dependent on any prior agreements concerning
the conclusions to be reached, nor are there any undisclosed understandings
concerning any future business dealings between the author and Colorado. The author
has been informed by Colorado’s attorney that there is no current or pending litigation
that may be material to the Carmen Project.
4.0 PROPERTY DESCRIPTION AND LOCATION
4.1 LOCATION: The Carmen Copper-Gold Project is located approximately 1,100

kilometers north of Santiago, the capital city of Chile, and about 100 kilometers north of
the City of Copiapo, Region III, Chile. The Carmen Property lies at an approximate mean
elevation of 2,100 meters, and is approximately centered UTM coordinates 7,031,000N
and 405,500E (Figure 4.1). The Carmen Property is easily accessible by paved and
unmaintained dirt road. Previous companies have created access roads (including drill
roads) within the property. Figure 4.2 details access within the property and towards the
Town of Inca de Oro.
Figure 4.1 Carmen Project - Location and Access Map
Figure 4.2 Carmen Project Map showing Topography, Concessions

and Access within and through the Property
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4.2 DESCRIPTION: The Carmen Property comprises 2 northerly trending irregularly
shaped mining, concessions “mensuras” (the Carmen concessions) which are leased
from Gestion de Activos Mineros S.A. (GAM) and 1 northerly trending exploitation
concession (the Oky concession) which is contained within the GAM concessions area
and which is leased by Sr. Oscar Rojas (Figure 4.3).
Figure 4.3 Carmen Project Concessions
As prepared by SBX Consultores

Contained within, but not part of, the GAM concessions is the small (2 hectares) NNW
trending Providencia concession (Figure 4.3), with dimensions of 100 meters x 200
meters and which, including the extra lateral rights that accrue to the Providencia
concession, occupies a total area of approximately 300 m EW x 250 m NS (as contained
within points 21, 27-23 and 24). The Providencia ground overlies approximately 36% of
the northern portion the potential mineral deposit as defined by Carrera, J. 2006). It also
overlies as a portion of the exploration potential that extends beyond the potential
Carmen mineral deposit. The concession defined by the points 28-31 which lies within
the GAM concessions (and which has not been acquired by Colorado) lies to the west of
what Colorado considers to be the westerly extent of the exploration potential.
The concessions that have been acquired by Colorado cover an area totaling 962
hectares as listed in Tables 4.1 through Table 4.3 and as shown in Figure 4.3. Table 4.1
lists the limiting points of the concessions. Point 1 is located at approximately the north-
central limit of the irregularly shaped Carmen concessions. Points 21-24 define the
corners of the Oky Concessions. Table 4.2 indicates the years that the owners filed on
their concessions; and, Table 4.3 indicates the years (and registration data) in which the
concessions were finally registered.
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Table 4.1 - Carmen Property Coordinates
UTM Coordinates UTM Coordinates

Point Northing Easting Point Northing Easting
1 7,031,648 17 7,030,925
405,083 404,625
2 7,031,650 18 7,030,928
405,186 404,703
3 7,031,388 19 7,031,319
405,190 404,828
4 7,031,392 20 7,031,325
405,397 405,089
5 7,031,702 21 7,031,203
405,392 405,500
6 7,031,719 22 7,031,203
406,292 405,600
7 7,029,719 23 7,031,003
406,328 405,600
8 7,029,717 24 7,031,003
406,228 405,500
9 7,028,967 25 7,030,956
406,242 405,605
10 7,028,931 26 7,030,950
404,242 405,205
11 7,030,180 27 7,031,200
404,219 405,201
12 7,030,186 28 7,030,688
404,497 404,712
13 7,031,161 29 7,030,692
404,479 404,911
14 7,031,161 30 7,030,192
404,500 404,921
15 7,031,100
404,500
31 7,030,188
404,721
16 7,031,100
404,617
TABLE 4.2 - Carmen Property Concessions Data

Comuna Inca de Oro, Provincia de Huasco, Region III, Chile
CONCESSION SIZE NE CORNER DATE OF

NAME COORDINATES UTM ACQUISITION
Hectares Easting Northing Year
1 Carmen 1/20& 23-98 960 404,219 7,031,719 1983

2 Oky 1/2 2 406,600 7,031,204 2001
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Table 4.3 - Carmen Project Mining Concessions Filing Data
Copiapo Mining
Property
Registrar
Concessions Area (has) Year Folio No.
Carmen 1/20& 23-98 960 1983 338 126
Oky 1/2 2 2001 599 197
The Carmen Property mining concessions have been surveyed and monumented
according to the Chilean mining regulations. The author identified certain monuments
which attest to the fact that at least some of the concessions have been surveyed;
however, the author has not verified, nor confirmed, that the concessions have been
properly surveyed and monumented and has relied on Colorado for this information.
Furthermore the author has relied on Colorado’s attorney (Antonio Ortuzar Jr. – Baker &
McKenzie) in Chile for information with regard to the filing and current status of the
concessions. Per the mining laws of Chile, mining concessions can be held in perpetuity
provided that the appropriate annual payments have been made. There are no
requirements that the property be put into production within some specified time frame.
The total annual cost, or “patente”, to maintain the Carmen mining concessions in good
standing and as currently constituted is 183.7 UTMs. A UTM is an inflation adjusted non-
monetary unit which at April 27th, 2005 was valued at CH $30,156. At April 27th, 2005,
and March 31, 2005 when the appropriate payments were made to maintain the
concessions in good standing through April, 2006, this cost was CH $5,539,441 or US
$10,354 (at an exchange rate of CH $535/USD).
There are no other surface uses designated for the land which has been acquired for
mining purposes at the Carmen Property, and the owner(s) to the mining rights therefore
has first right to the use of the surface, subject to the appropriate permitting. The owners
and Colorado likewise will have full legal rights to the water that is found within the
Carmen property.
4.3 OPTION/PURCHASE SUMMARY: Colorado, through its Chilean subsidiary La

Veta Limitada, has acquired the rights to explore and develop the Carmen Property per
the following agreements.
1. Colorado entered into an Option to Purchase Agreement with Gestion de Activos

Mineros S.A. (GAM) per public document dated November 21st, 2005. Colorado
agrees to acquire a 100% interest in the Carmen Property concessions in exchange
for the below scheduled cash payments for a total of US $5,250,000. Colorado has
up to 54 months in which to exercise its option, by which time, and as indicated
below, it must exercise the option or the property reverts to the GAM.
The author has not seen the Option to Purchase document and has relied on Colorado’s
attorney for a summary of the terms of the agreement as described below:
• $250,000 - on signing; this amount has been paid;

• $350,000 – payable by June 1, 2006;
• $950,000 – payable by May 31, 2007;
• $1,000,000 - payable by May 1, 2008;
• $1,000,000 – payable by May 1, 2009;
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• $1,700,000 – payable by November 18, 2010.
At the point that the total option purchase payments have been made the ownership of
the property will be legally transferred to Colorado. IN the event that LA VETA exercises
the option, it shall pay GAM a 1% Net Smelter Return royalty from production.
The Option Agreement is further stated to convey water rights, as well as all surface
easements that typically accrue to mining concessions in Chile; GAM has furnished
Colorado with a general guaranty mortgage which assures against GAM entering into
any kind of outside agreement which might be prejudicial to Colorado’s interests.
2. Colorado entered into an Option to Purchase Agreement with Sr. Oscar Rojas
per public document dated December 19th, 2005. Colorado agrees to acquire a
100% interest in the Carmen Property concessions in exchange for the below
scheduled cash payments for a total of US $320,000. Colorado has up to 36 months
in which to exercise its option, by which time, and as indicated below, it must
exercise the option or the property reverts to the owner.
The author has not seen the Option to Purchase document and has relied on
Colorado’s attorney for a summary of the terms of the agreement as described
below:
• $20,000 - on signing; this amount has been paid;

• $25,000 – payable by October 30, 2006;
• $75,000 – payable by December 19, 2006;
• $100,000 - payable by December 19, 2007;
• $100,000 – payable by December 19, 2008;
The Option Agreement is further stated to convey water rights, as well as all surface
easements that typically accrue to mining concessions in Chile; the lessor has furnished
Colorado with a general guaranty mortgages which assures against them entering into
any kind of outside agreement which might be prejudicial to Colorado’s interests.
Colorado reserves the right to transfer, sell, or otherwise dispose of the properties at any
time provided the terms of the agreement continue to be met.
Colorado’s Chilean legal counsel (per Memorandums dated January 26th, and February
13th, 2006 addressed to the author) has stated that the appropriate property payments
“patentes” have been made, and that the Carmen concessions are in good standing.
4.4. ENVIRONMENTAL: There are no known environmental concerns at this time with
regard to the work that has been performed at Carmen. Under Chilean environmental
regulations, as they apply to mining exploration activities, Colorado will not be required
to initiate environmental permitting until it initiates actual development (as opposed to
exploration) work on the property; it is anticipated that Colorado will have no difficulty in
obtaining the requisite work, and other permits, to develop and mine the property at the
appropriate time. Chile is a mining oriented country and mining is both socially and
politically viewed favorably.
14
5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND
PHYSIOGRAPHY
5.1 ACCESS: Access from Santiago is by the paved Pan-American Highway

approximately 500 kms by 4-lane toll highway to La Serena and thereafter to Copiapo by
approximately 350 kms of two-lane paved highway. Copiapo also has excellent air
service (LanChile, Sky) from Santiago and other Chilean cities. The Atacama
International airport is located approximately 40 kms NW of Copiapo. The property can
be easily accessed from Copiapo by road and is located approximately 110 road-kms
from Copiapo (Figure 4.1). Access to the property (1.5 hours) is via paved Hwy 31
(becoming Ruta C-17) which leads to the towns of Inca de Oro, Diego del Almagro and
NE towards the El Salvador mine. The highway is accessed from the center of Copiapo
by heading SE through Copiapo towards Tierra Amarilla 8.7 kms and turning left (north)
out of Copiapo and towards Inca de Oro/Diego del Almagro; at 87 kms turn left (west) on
to an unmaintained dirt road (the second turnoff leading towards Las Guias) and
continue 6.8 kms where turn right (north and within 1 kms enter the southern end of the
Carmen property.
5.2 CLIMATE AND PHYSIOGRAPHY: The Carmen Project is located towards the
southern end of the Atacama Desert where precipitation averages < 1 mm/mo and
ranges from 0 – 5 mm. Vegetation is essentially nonexistent. The average annual
temperature is on the order of 15o C and ranges between 0o C to 20o C in the winter
months and 10o C to 35o C during the summer months. Mining can be operated on a
year round basis.
The Carmen property lies in the narrow Central Valley “Depression” area located
between the Coast Ranges to the west and the Cordillera to the east; and, at a mean
elevation of approximately 2,100 meters.
5.3 LOCAL RESOURCES AND INFRASTRUCTURE: The Central Chile power grid
is located in close proximity to the Ruta C-17 that travels between Copiapo and Diego
del Almagro or 7 kms to the east of the property, and a substation exists at the town of
Inca de Oro located approximately 10 kms to the north of the Carmen Project.
Experienced mine and plant personnel can be easily sourced from Copiapo, Diego del
Almagro and other parts of Chile. Water has not been developed on the property and a
source will have to be investigated. Potable water will most likely have to be brought in
from Diego del Almagro. Most major mine supplies can be obtained in Copiapo or
trucked in from Santiago, La Serena, or Antofagasta. Port facilities exist at Caldera and
Chanaral, ~180 and 90 kms respectively. There is adequate ground within and about the
Carmen concessions to easily accommodate any potential mining operation, including
the plant site, waste and tailings dumps.
6.0 PROJECT HISTORY
6.1 RECENT WORK: The original date(s) of acquisition of the Carmen Property is not
known to the author. The original exploration concessions have been variously
converted to mining concessions since 1983 and as indicated in Section 4. The author
has no knowledge with regard to whether the underlying owners have performed any
work on the concessions.
15
The Carmen property has been previously mined on a small scale by “pirquineros” for
placer gold and for gold (copper?) from a number of shallow trenches and a small shaft.
The production that has been taken from the property is not known to the author, but
was probably minimal. The Pique (Shaft) Carmen is located on/or proximal to a narrow
zone of silicified copper oxide stained gold bearing (refer to sample CAR-01, Table 14.2
Section 14, Data Verification) vein/veinlets and which was glory-holed over a zone + 3m
wide x 120m long and 30m deep.
The Inca de Oro District in general has been variously explored by a large number of
mining companies and/or organization which include the following: United Nations,
Codelco, ENAMI, Santa Fe (SFMC), Placer Dome, Utah International, Rio Algom, Orion,
Southwestern and MNI Ingenieros. This work most probably started in the late 1970s or
early 1980s and extended into the 1990s. The author has no data with regard to the
work that these various groups performed in the area, and with the exception of Rio
Algom, Orion, Southwestern and MNI, has no knowledge if any of them worked
specifically in the Carmen area.
According to Winter (1998), Rio Algom prior to 1988 did some trenching which indicated
some interesting stockwork mineralization, but they did no further work on the property;
no data is available for this work. Orion apparently is the first company to have seriously
initiated exploration on the Carmen property (1988 to 1990) when it initiated a
percussion drilling program (no information provided) which was followed by a diamond
drilling program when it drilled 2,988.5 meters in 23 holes (Table 6.2). Winter states that
the Orion percussion drilling program had originally been designed to test a mineralized
(gold) north-south trending structure. However as a result of this work, their concept
changed and they initiated a diamond drill program to test for the “porphyry related
mineralization at the porphyry-andesite contact”. No data has been made available with
regard to the Orion percussion drill program, including location, drill logs or assays. The
author has no knowledge with regard to which drilling company or assay laboratory was
used by Orion.
Southwestern optioned the property in 1996-1997 during which time they remapped the
geology, performed geophysics (magnetometer), put in more roads and drill platforms,
cut and sampled additional trenches, and diamond drilled 11,796.3 meters in 33
diamond holes for a total of 14,784.8 meters in 56 holes as detailed in Tables 6.3. The
Southwestern contracted PerfoAndes for the drilling; and, used the CIMM assay
laboratory to perform their assay work.
Orion/Southwestern/MNI mapped the property (2,000m x 800m) at a scale of 1:1,000.

Southwestern conducted a ground magnetometer survey over an area 1,000m x
2,000m. Colorado has not been provided with the magnetometer survey results.
Orion (reportedly) and MNI took 100 and 60 surface channel samples, respectively. The
MNI data (composited) data is tabulated below in Table 6.1 and depicted in Figure 12.1.
Orion/Southwestern constructed and sampled some 1,900 meters of trenching – the
specific trench sample data has not been made available to Colorado. Figure 7.4 depicts
the geology of the Carmen property (at a scale of 1:2,000), and the locations of the
Orion/Southwestern trenching. Figure 12.1 provides the MNI channel chip and trench
sample locations and composited assay (copper-gold) intervals. Colorado was provided
with a series of assay generated cross sections which were developed at 50 meter
intervals (prepared at scales of 1:1,000 and 1:2,000) which it is assumed were compiled
16
by MNI (the source for the maps and cross sections, etc., is not identified). The assay
cross sections show selected channel trench sample data (and which, where
appropriate, have been projected on to the sections).
Table 6.1 – Carmen Project - MNI Chip Channel and

Trench Sample Results
Northing Easting Cu Au Length
From To From To % g/t m
0.23 1.82 5
0.07 1.83 3
7,031,500 7,031,400 405,300 405,200
0.16 2.36 5
0.28 3.6 2
0.25 3.25 5
0.25 7.1 1
0.56 2.6 3
7,031,400 7,031,300 405,200 405,500 0.06 0.94 5
0.08 1.15 10
0.18 2.35 3
0.07 2.7 2
0.72 1.14 7
0.03 0.55 10
0.04 0.61 12
0.1 2.1 10
0.08 0.73 6
0.96 0.21 5
0.48 0.15 6
0.1 0.97 8
7,031,300 7,031,200 405,300 405,700 0.02 0.97 8

0.02 0.04 9
0.18 0.16 7
0.02 0.05 7
0.04 0.04 12
0.03 0.03 16
0.12 0.15 5
0.47 0.13 5
0.19 0.41 5
7,031,200 7,031,100 405,300 405,700 1.09 0.25 10
0.02 0.02 13
0.01 0.02 18
0.03 0.03 13
0.02 0.01 16
17
0.02 0.02 7
0.04 0.03 6
0.02 0.02 15
0.05 0.06 20
0.07 0.08 13
0.39 0.45 5
0.57 0.89 11
1.18 0.97 4
0.31 0.65 5
0.37 0.36 5
0.62 1.84 20
0.91 2.62 20
7,031,100 7,031,000 405,300 405,700
0.57 0.95 10
0.27 0.19 6
0.27 0.08 4
1.4 0.45 3
1.46 0.25 6
0.3 0.34 11
0.48 0.63
0.51 1.15 18
0.12 0.28 10
0.54 0.61 10
0.46 0.73 10
0.24 3.16 10
7,031,000 7,030,900 405,300 405,600
0.17 0.48 10
1.23 0.72 14
0.21 0.38 10
0.92 1.27 7
0.48 0.39 18
0.22 0.15 12
0.47 0.82 12
405400 1.16 0.65 10
7,030,900 7,030,800 405,600
0.6 0.51 15
0.24 0.26 35
18
Table 6.2 - Carmen Project - Orion Diamond Drill Hole Data
Drill
UTM Coordinates Elevation Azimuth Inclination Length
Hole
No. Easting Northing Meters Degrees Degrees Meters
CD-1 405,425 7,031,050 2,133 0 -90 199.15

CD-2 405,475 7,031,041 2,129 0 -90 179.50
CD-3 405,375 7,031,050 2,129 0 -90 149.75
CD-4 405,400 7,030,950 2,128 0 -90 134.00
CD-5 405,452 7,030,950 2,121 0 -90 162.10
CD-6 405,499 7,030,849 2,112 0 -90 182.40
CD-7 405,498 7,030,850 2,112 0 -90 100.60
CD-8 405,449 7,030,900 2,119 0 -90 128.00
CD-9 405,425 7,031,000 2,129 0 -90 140.00
CD-10 405,425 7,031,099 2,137 0 -90 156.00
CD-11 405,488 7,030,799 2,109 0 -90 123.80
CD-12 405,413 7,031,025 2,131 0 -90 100.00
CD-13 405,525 7,031,050 2,135 0 -90 200.50
CD-14 405,624 7,031,049 2,151 0 -90 200.00
CD-15 405,575 7,031,050 2,140 0 -90 210.00
CD-16 405,559 7,031,000 2,129 0 -90 136.00
CD-17 405,575 7,031,100 2,145 0 -90 14.04
CD-18 405,627 7,030,949 2,137 0 -90 106.50
CD-19 405,550 7,030,943 2,126 0 -90 100.00
CD-20 405,591 7,030,895 2,129 0 -90 180.00
CD-21 405,540 7,030,884 2,119 0 -90 40.00
CD-22 405,503 7,030,966 2,127 0 -90 34.15
CD-23 405,544 7,030,821 2,114 0 -90 12.00
Total Drilled: 23 holes 2,988.49
Table 6.3 - Carmen Project - Southwestern Diamond Drill Hole Data
Drill Hole UTM Coordinates Elevation Azimuth Inclination Length
No. Easting Northing Meters Degrees Degrees Meters
CDDH-01 2,132 0 -90.00 581.50

405,600 7,030,900
CDDH-02 2,135 0 -90.00 447.00
405,425 7,031,071
CDDH-03 2,122 0 -90.00 428.65
405,598 7,030,850
CDDH-04 2,138 0 -90.00 549.90
405,422 7,031,121
CDDH-05 2,132 0 -90.00 451.60
405,600 7,030,950
CDDH-06 2,137 0 -90.00 404.25
405,700 7,030,902
CDDH-07 2,133 0 -90.00 467.25
405,485 7,031,099
19
CDDH-08 2,135 0 -90.00 541.90
405,400 7,031,100
CDDH-
2,128 0 -90.00 468.50
09A 405,550 7,031,000
CDDH-10 2,183 0 -90.00 279.10
405,752 7,031,196
CDDH-11 2,131 270 -62.50 354.30
405,500 7,031,050
CDDH-12 2,127 270 -65.00 409.65
405,500 7,031,000
CDDH-13 2,150 270 -60.00 441.70
405,624 7,031,050
CDDH-14 2,140 270 -60.00 314.65
405,500 7,031,150
CDDH-15 2,122 90 -70.00 278.25
405,350 7,030,950
CDDH-16 2,083 270 -60.00 323.05
404,900 7,029,900
CDDH-17 2,167 240 -65.00 506.20
405,710 7,031,015
CDDH-18 2,089 270 -65.00 241.35
404,800 7,029,900
CDDH-19 2,148 240 -65.00 406.75
405,764 7,030,933
CDDH-20 2,124 90 -70.00 343.75
405,300 7,030,950
CDDH-21 2,128 90 -65.00 345.60
405,300 7,031,000
CDDH-22 2,127 90 -50.00 156.50
405,350 7,031,000
CDDH-23 2,121 90 -70.00 122.15
405,400 7,030,950
CDDH-24 2,130 90 -55.00 170.00
405,375 7,031,050
CDDH-25 2,145 270 -62.00 455.50
405,575 7,031,100
CDDH-26 2,132 90 -60.00 312.50
405,250 7,030,900
CDDH-27 2,133 270 -55.00 222.70
405,475 7,031,100
CDDH-28 2,161 270 -60.00 412.50
405,600 7,031,175
CDDH-29 2,150 240 -75.00 349.95
405,625 7,031,050
CDDH-30 2,128 270 -65.00 150.75
405,550 7,031,000
CDDH-31 2,148 240 -60.00 375.65
405,735 7,030,975
CDDH-32 2,144 270 -60.00 223.20
405,650 7,030,950
CDDH-33 2,137 270 -50.00 260.00
405,700 7,030,900
Total Drilled: 33 holes
11,796.30
The only original Southwestern data that was provided to Colorado comprise copies of
predominantly handwritten summary drill logs, a bound paper copy containing printed
spreadsheets of the assays for drill holes CDDH-1 to 33 and a very small number of
copies of the original CIMM (4%) assays. A copy of a “Geological Resource Estimate”
generated by Southwestern dated 1988 was also made available. The drill hole
information and assay data was made available in electronic form (Excel spreadsheets)
for the Southwestern and Orion drilling. No additional “hard” data have been provided
with regard to the work that was performed by either Southwestern or Orion, or to back
up this work. Limited portions of the CDDH drill hole electronic assays are either
20
missing, or were non-legible, and were not entered into the spreadsheets, or the data
was composited and the assays for individual intervals are not available. To a lesser
extent the same is true for the CD data set. Gold values are commonly missing in the
spreadsheets where the copper values are low, possibly indicating that the gold was not
assayed for. Table 11.1 which lists the majority of the “significant intercepts” indicates
those intervals where data was missing or had been previously composited.
None of the Orion drill core has been preserved. Approximately 80% of the
Southwestern drill core is available and is stored in Copiapo.
The drilling that has been conducted (identified) to date is generally centered on a + 50
meter grid within the approximate center of the currently defined mineral deposit (and as
contained within a 350m x 350m area). A number of holes (fill in, or check holes) were
drilled at intervals varying from 10m to 50m, in either an east-west, or a north south
direction. Scattered peripheral holes have been drilled to the east and west of the main
zone as well as on trend to the north.
Orion analyzed the core samples for total copper and gold; Southwestern analyzed for
total copper, gold, silver and generally for molybdenum. Southwestern initially analyzed
for arsenic but discontinued this practice after the first drill hole.
The Orion/Southwestern drill holes locations are shown below in Figure 6.1. The dashed
pink lines approximately delineate the currently defined mineralization, and the yellow
colored area depicts the holes that were drilled on the Providencia ground vs. those that
were drilled on the ground that is currently held by Colorado (in green) .
Figure 6.1 – Carmen Project Drill Hole Locations
The author has evaluated the Orion/Southwestern drill results with the intent of
determining if, or establishing whether, the different drill campaigns produced usable
results. The similarity of the lognormal curves depicted in Figures 6.2 and 6.3 for the
copper values and the very similar statistical values (Table 6.4) obtained from the two
21
sets of drill hole data strongly suggest that the copper assays obtained from the two
separate drill hole campaigns can be reasonably and prudently correlated and utilized in
a resource estimation.
Figure 6.2 Log Normal Histogram

for CDDH Drill Holes – Cu >/=0.1% Cu)
LOG Normal Histogram
Data 1 CU March 2006

1072
858
Frequency Count
643
429
214
0
0 0.000 0.001 0.010 0.100 1.000 10.000
Real Value
Software By Gemcom
Figure 6.3 Log Normal Histogram

for CD Drill Holes - Cu Values (>/=0.1% Cu)
Data Set 2 Cu March 2006

303
242
Frequency Count
182
121
61
0
0 0.000 0.001 0.010 0.100 1.000 10.000
Real Value
Software By Gemcom
22
Table 6.4 Comparative Statistics -
Copper Assays
CD
CDDH Holes Holes
# Samples 4508 1587
Mean - % 0.32 0.32
Min - % 0.1 0.1
Max - % 6.5 3.67
# of samples <=0 0 0
Standard Dev. 0.28 0.27
Variance 0.08 0.07
Median 0.27 0.26
The lognormal distribution curves for the gold values (Figures 6.4) in the CDDH drill hole
data set has been truncated on the low side as a result of the 0.1% Cu cutoff used by
the author to define the sample population which was included in this statistical analysis.
At the 0.1% Cu cutoff grade utilized, the lowest gold value in this set was 0.08 g/t Au.
However, in the CD drill hole data set, this cutoff did not automatically create an elevated
bottom, or “truncation” of the gold values and an essentially lognormal (bell shaped)
curve resulted. The comparison of the statistical functions (Table 6.5) between the two
gold data sets demonstrates the relative differences (which are typical for gold sets)
between the two sets as compared with the nearly identical results obtained for the
copper data. Taking into account that gold generally does not react as well statistically
as e.g. copper, the comparative gold results for the two drill holes sets are probably
acceptable and that the gold assays can be used with equal confidence as the copper
assays.
The lack of “good” correlation coefficients for the Cu:Au may reflect the occurrence of
the two separate low sulfidation gold mineralizing events – the quartz-calcite-adularia-
gold-copper northerly trending vein set which may be superimposed on the principal low
sulfidation (quartz-adularia) gold-copper stockwork mineralization.
Figure 6.4 Log Normal Histogram for CDDH Drill Holes

- Au Values (included in intervals with >/=0.1% Cu)
Carmen Data 1 AU March 2006

958
766
Frequency Count
575
383
192
0
0 0.000 0.001 0.010 0.100 1.000 10.000
Real Value
Software By Gemcom
23
Figure 6.5 Log Normal Histogram for CD Drill Holes
- Au Values (included in intervals with >/=0.1% Cu)
Data Set 2 Au March 2006

240
192
Frequency Count
144
96
48
0
0 0.000 0.001 0.010 0.100 1.000 10.000 100.000
Real Value
Software By Gemcom
Table 6.5 Comparative Statistics -

Gold Assays
CDDH Holes CD Holes
# Samples 4508 1587

Au Mean 0.43 0.41
Min 0.08 0
Max 10.3 11.9
# of samples <=0 0 275
St. Dev. 0.57 0.64
Variance 0.33 0.42
Median 0.24 0.30
Various “resource” (potential quantities and grades) estimations have been prepared for
the Carmen mineralization. The potential quantities and grades indicated are conceptual
in nature and there has been not been sufficient exploration to define a mineral resource
on the property. It is uncertain if further exploration will result in the discovery of such
mineral resources on the property. The author understands that the various quantities
and grades that have been estimated have been estimated using conventional cross
sectional techniques which apparently largely only incorporated the composited data and
generally made little use of the geology. None of these estimations are CIM nor NI 43-
101 compliant, and they have not been reviewed nor verified by a “Qualified Person”.
Furthermore, Colorado has not considered categorizing any of these estimates as
resources.
Carrera (2006) indicated that the estimates that he had prepared (Table 6.6) for the
24
Carmen potential mineral deposit are 64% contained within the Colorado-held
concessions (Carmen/Oky) and that 36% of this indicated potential mineral deposit is
contained within the Providencia concessions (and extra-lateral rights) which lie on the
northern side of the potential mineral deposit.
Colorado has budgeted (Phase II) to have CIM/NI 43-101 compliant resources
estimated. These resources will be estimated based on the data that has been
generated to date in conjunction with the additional data that will be generated from the
proposed drilling. This drilling will also allow Colorado to further confirm the reliability of
the drill hole information that has been developed to date.
Unless otherwise indicated, the potential “resources” have been estimated using gold
equivalent values and for which metal prices were assumed. To the best of the author’s
knowledge metallurgical recovery assumptions were not considered.
• Beniscelli (Mining Engineer - Dec, 2004)

o “Approximately” 15,000,000 tons grading 0.4% Cu and 0.7 g/t Au using a
1 g/t Au equivalent cutoff grade; (metal prices used - US $0.95/lb Cu,
$375/oz Au);
o “Approximately” 30,000,000 tons grading 0.3% Cu and 0.5 g/t Au using a
0.7 g/t Au equivalent cutoff grade;
• MNI Ingeniera (Dec, 2005) – Indicated-Measured Resources (metal prices used - US

$1.10/lb Cu, $400/oz Au):
o Measured and Indicated “Resources” – 29,400,000 tons @ 0.43% Cu and

0.68 g/t Au (1.5 g/t Au equivalent) using a 1 g/t Au equivalent cutoff
grade;
o Measured and Indicated “Resources” – 41,200,000 tons @ 0.40% Cu and
0.56 g/t Au (1.36 g/t Au equivalent) using a 0.7 g/t Au equivalent cutoff
grade;
o Inferred “Resources” – 19,400,000 tons (no grade indicated) using a 1 g/t
Au equivalent cutoff grade;
o Inferred “Resources” – 28,300,000 tons (no grade indicated) using a 0.7
g/t Au equivalent cutoff grade;
• La Riva, Viteri (Dec, 2004) – (no cutoff grades or prices indicated):

Proven “Resources” – 31,000,000 tons @ 0.8 g/t Au and 0.45% Cu
Inferred “Resources” – 90,000,000 – no grades provided.
•Winters (1998) – (a cut off grade of 0.4% Cu equivalent was utilized; the Cu
equivalent relationship being given by the following equation: g/t Au/% Cu = 1/0.6
(no metal prices, recovery, etc. factors were incorporated):
Western Zone: 5,000,0000 tons @ 0.6% g/t Au and 0.38% Cu;
Lower Eastern Zone: 4,000,000 tons @ 0.9 g/t Au and 0.45% Cu;
Upper Eastern Zone: 4,000,000 tons @ 0.3 g/t Au and 0.28% Cu.
Colorado commissioned Chilean Mining Engineer Jose Carrera (Jan, 2006) to generate
a series of “resource/reserve” estimations (potential grades and quantities) and mining
scenarios with the objective of providing Colorado with a basis for determining whether
25
or not they should consider acquiring additional property(ies) with additional resource
potential within and/or in close proximity the Inca de Oro district so as to justify the
installation of a mining operation complex. This work considered copper-gold prices,
metallurgical recoveries, estimation of open pit and underground mining costs, capital
costs, etc. As has been indicated above, the results of this study are provided in the
interests of indicating ALL of the data that has been made available to the author. The
author reiterates that the following results are not considered by the author or by
Colorado to be CIM or NI 43-101 compliant, and they have not been reviewed nor
verified by a “Qualified Person”. Furthermore, Colorado has not considered categorizing
any of these estimates as resources.
Table 6.5 summarizes the estimations that were performed by Carrera on behalf of
Colorado.
Table – 6.6 Jose Carrera Mineral Potential Estimations

Cut off Metal Prices
Grade
Tons x grade US $
1,000,000 % g/t Au
Equiv. $/lb Cu $/oz Scenario
Cu Au
15.3 0.4 0.64 1.0 1.15 425 Base Case
17.2 0.42 0.7 1.0 1.15 425 Base Case
19.5 0.42 0.68 1.0 1.15 425 Base Case
19.7 0.38 0.55 0.7 1.15 425 Base Case
21.9 0.39 0.6 0.7 1.15 425 Base Case
24.8 0.39 0.58 0.7 1.15 425 Base Case
19.5 0.42 0.68 1.0 1.50 475 OP
29.4 0.43 0.68 1.0 1.50 475 OP+UG
24.8 0.39 0.58 0.7 1.50 475 OP+UG
41.2 0.4 0.56 0.7 1.50 475 OP+UG

OP – Open Pit; UG - Underground
Carrera (2006) states 36% of the potential mineral deposit as defined by him lies within
the Providencia concession located over the northern portion of the currently defined
mineral potential.
The potential quantities and grades which have been expressed in the various
estimations indicated above are conceptual in nature and to date there has been
insufficient exploration and/or development conducted to define a mineral resource on
the property. It is uncertain if further exploration will result in the discovery of a mineral
resource on the property. However, it is the author’s opinion that sufficient drilling has
been performed to properly prepare, at the very least, inferred resources at Carmen and
that additional confirmation of the data, plus a more complete compilation of this material
and preparation of the estimation by a “Qualified Person” will result in the estimation of
CIM/NI 43-101 compliant resources.
The author recommends that Colorado approach MNI and Southwestern (still active in
Peru) with the objective of obtaining copies of the Carmen “hard” data that Southwestern
has and which MNI was able to compile with the objective of confirming, to the extent
possible, the validity, etc., of the data.
26
No information is available with regard to the expenditures that have been made by
either Orion or Southwestern on the exploration and development of the Carmen
Property.
7.0 GEOLOGY
7.1 REGIONAL AND LOCAL GEOLOGY:
Northern Chile is formed by three, north-south trending geological-geographical domains

that are, from west to east, the Coastal Cordillera, the Intermediate Depression (or
Central Valley) and the Cordillera de Domeyko. The Carmen project is approximately
centrally situated in the Intermediate Depression between the Atacama Fault Zone to the
west and the Domeyko Fault Zone to the east (Figure 7.1).
The Coastal Cordillera comprises a Paleozoic metamorphic and granitic basement

overlain by a number of north-south trending volcano-sedimentary sequences; the
remnants of subduction related magmatic arcs and back-arc basins, which are
progressively younger to the east. The Triassic Cifuncho Formation, consisting of
conglomerate, sandstone and volcanic rocks occurs primarily along the coast. Slightly
inland are the Jurassic marine sediments and minor volcanic material of the Pan de
Azucar and Posada de Los Hidalgo Formations. These Formations are overlain by the
extensive and very thick Jurassic sequence of andesitic to basaltic flows, breccias and
interflow sediments of the La Negra Formation. The La Negra Formation is in fault
contact with the overlying Lower Cretaceous volcaniclastic rocks and continental and
marine sediments of the Aeropuerto Formation further to the north of Carmen and by the
Chañarcillo/Cerrillos Formations in the Inca de Oro area.
More specially, the Middle to Upper Jurassic La Negra Formation which attains a
thickness of 2,400 meters passes upwards into the andesitic lavas, breccias and tuffs of
the Upper Jurassic to Lower Cretaceous Formation Punta del Cobre. These are overlain
unconformably by the Chañarcillo Group which consists of a marine sequence which
includes thinly bedded sandy limestone, calcareous siltstones, sandstones and
limestone. This sequence is about 450 m thick. The Chañarcillo Group rocks are in turn
overlain by the continental sequence of sandstones, conglomerates and breccias of the
Upper Cretaceous Cerrillos Formation. The volcanic-sedimentary pile has been intruded
by Upper Cretaceous and Lower Paleocene stocks and subvolcanic complexes. The
oldest of the intrusives, which are lower Upper Cretaceous pyroxene andesite and dacite
porphyries, are exposed 2 kms to the north of Carmen area. The next intrusive stage
comprising hornblende granodiorites, tonalities and quartz diorites (similar to the
Carmen Porphyry) which have been dated 95-88 Ma (Upper Cretaceous). The La
Copiapina pluton which is outcrops to 3-8 kms NE of Carmen consists of Upper
Cretaceous to Lower Paleocene quartz monzonites and diorites which have been dated
at 72-62 Ma. The youngest intrusive unit found in the district is the La Campana plutonic
complex which has been dated 57-54 Ma. The La Campana plutonic complex is made
up of pyroxene and biotite quartz monzonites and diorites.
The Carmen area lies at the southern end of the Inca de Oro district, a NNE trending
mineral district located between the northerly trending Atacama Fault Zone - AFT (along
which are found a number of iron and IOCG (Iron Oxide-Copper-Gold) deposits of Chile,
27
including the AngloAmerican Mantoverde deposit) to the west and the NNE trending
Domeyko Fault Zone or West Fissure System (foci for some of the giant porphyry copper
deposits including Upper Eocene-Lower Oligocene Codelco Chuquicamata and
Escondida deposits). Somewhat further south and on the same structural trend, are
located the Tres Puntas and Chimberos silver districts. The recently (Codelco)
discovered Campana, or Inca de Oro, porphyry copper deposit (rumored to contain +300
million tons of + 0.5% Cu + gold values) is located approximately 10 kms to the north
and immediately east of the village of Inca de Oro. The Inca de Oro district is a NNE
trending extensional structural belt 20 km long and 3 to 5 km wide. More than 100 gold
and gold-copper ore body veins in the area have been mined (some of which continue to
be small scale mined). Llaumett (2003) indicates that gold production from Inca de Oro
has been in the 500,000 oz range primarily from narrow (generally ~meter wide)
underground operations some of which have reached to depths to 300 meters. In the
immediate Inca de Oro district at least 5 other gold and copper-gold porphyries mineral
deposits have also been discovered (refer to Figure 7.2) and which include the
Campana (Codelco), Dinamarquesa, Juana, Colorado and El Inca mineral deposits.
Figure 7.1 Inca de Oro District Location relative to the AFT

and the Domeyko Fault systems
Generated by J. Currie, 2000
28
Table 7.1 Stratigraphic Column for the Inca de Oro District
Quaternary Alluvial and colluvial deposits
Pliocene-U. Miocene Ancient Alluvial deposits
Pyroxene and biotite-quartz
L. Paleocene La Campana Complex
monzonites & diorites
U. Cretaceous -L.
La Copiapina Pluton Quartz monzonites, diorites
Paleocene
Hornblende granodiorites, tonalites,
Upper Cretaceous Intrusives
quartz diorites
Lower U. Cretaceous Intrusives Pyroxene andesite & dacite porphyries
Volcaniclastic sandstones,
M. Cretaceous Cerrillos Formation
conglomerates and breccias
Red sandstones, conglomerates and
Upper L. Cretaceous Chañarcillo Group
limestone
U. Jurassic-L. Andesitic lavas, pyroclastic breccias,

Punta del Cobre Formation
Cretaceous volcanic sandstones
Basaltic and andesitic lavas, volcanic
M. to U. Jurassic La Negra Formation
breccias
Figure 7.2 Inca de Oro District Geology
Adapted from Viteri (2004)
7.2 METALLOGENY: The Carmen Property is contained within the central Chile Upper
Cretaceous Metallogenic belt (Figure 7.3) as described by Maksaev, (2001) which
extends as far north as the Caracoles silver deposit (located to the NE of Antofagasta
and to the south in the Rancagua area ~ 80 kms south of Santiago for approximately
29
1,350 kms. It probably has a maximum width of 30 kms. The belt is composed of widely
spaced epithermal-mesothermal vein type mines/districts which encompass silver mines
(Caracoles, Chimberos-Tres Puntas and Arqueros), the Inca de Oro epithermal porphyry
gold-copper district, and the low sulfidation quartz-copper-gold bearing epithermal mines
located in the Rancagua area south of Santiago.
On a more local basis, the Inca de Oro district includes the Campana porphyry copper
deposit (Codelco) as well as the NS and NNE trending low sulfidation gold-rich system
which hosts veins, stockworks and porphyry gold (and copper) mineralization and which
include such systems as the Rhodesia vein, Sebastopol vein, Las Guias veins and the
low grade Dinamarquesa porphyry. This belt also includes the silver deposits which
extend southward at Tres Puntas and Chimberos and which are considered to be
associated with Lower Paleozoic intrusives. These deposits are associated with granitic
complexes and high level intrusions of lower Paleocene age.
Figure 7.3 Upper Cretaceous Metallogenic Belt of Chile
7.3 PROJECT GEOLOGY
7.3.1 Lithology: Figure 7.4 depicts the local geology of the Carmen Property as
generated by Southwestern (1998) and Llaumett (2005). Southwestern described and
summarized the project geology as it is currently understood. The following is taken from
30
and modified as required from a Southwestern report and drill logs and Llaumett reports
2003 and 2005).
The Carmen Property is underlain primarily by the volcanic rocks of the Punta del Cobre
Formation which consist of andesitic lava flows, breccias and tuffs and which are
overlain discordantly by calcareous sediments of the Chañarcillo Group. These units are
intruded by a tonalitic porphyry, which has been termed the Carmen Porphyry.
The following rock units are recognized at the Carmen Property:
1. - Andesitic lavas, breccias and tuffs

2. - Fine porphyritic andesites
3. - Dacitic tuffs
4. - Latitic tuffs
5. - Grey calcareous sandstones
6. - Dark red andesitic flows and breccias
7. - Calcareous sandstones and tuffs
8. - Andesitic tuff and breccias.
9. - Tonalitic Porphyry
The geology of the property consists of a complex of tonalitic (and felsic) porphyries
which intrude the volcanic-sedimentary sequence. A major fault, the Canada Fault,
which trends NS and dipping 75ºE, cross cuts the center of the mineralization. This
major through-going fault is probably closely related to the northerly trending gold-
copper vein swarms. The Canada fault has apparently also down dropped the eastern
half of the potential Carmen mineral deposit by approximately 100m downwards relative
to the western half.
The western block consists of latitic pyroclastic and andesitic flows which are overlain by
andesitic tuffs and flows. The latites show strong potassic alteration and the andesites
are coarsely porphyritic. The tonalite porphyry in this sector trends NS and its western
contact with the volcanic unit is approximately vertical. A large number of tonalite
dikes/sills (measuring a few tens of cms to tens of meters in thickness) extend irregularly
(erratically) into the volcanics.
The eastern down-dropped block is composed of porphyritic andesitic volcanic flows

which are overlain by an approximately 100 m mixed sequence of volcanic tuffs and
sediments. The sediments are dominant in the upper part. The sediments have been
contact metamorphosed to brown skarns and the volcanic tuffs to green skarns by the
tonalite intrusive. The tonalitic porphyry in this sector occurs mainly as dykes and sills. In
the northern part of this block, a pyroclastic complex of tuffs, lapilli tuffs and volcanic
breccias is observed.
The tonalite is typically an hornblende porphyry with hornblende crystals up to 10 mm in

size. The northern and western contacts appear to be more or less vertical with irregular
dikes intruding the enclosing volcanics. The eastern contact appears to occur mainly as
dykes and sills.
31
Figure 7.4 - Carmen Project Geologic Map
Adapted from Southwestern (1998) and Llaumett (2005)
7.3.2 Alteration: Llaumett (2005) considers that the principal alteration affecting the
mineralized tonalite porphyry and the andesitic units is a sequence of strong potassic
alteration (which he attributes to the presence of adularia) as well as the development of
illite, chlorite, quartz and calcite. This alteration sequence is typical of low sulfidation
systems. Southwestern did not identify adularia in their drilling, but did identify significant
intervals of potassic feldspar+biotite+silica plus peripheral propyllitic alteration. This
association may suggest elements of a deeper seated primary porphyry copper
alteration style. However, the Southwestern drill logs indicated that the bulk, if not all, of
the Mo is associated with the quartz-calcite-sulfide-magnetite veins. The through-going
system of narrow, but very continuous, gold bearing quartz veins (swarms) which
transect the district may represent a separate gold bearing event which might explain the
lack of correlation between the copper and the gold values in the drill holes. Locally the
potassic alteration shows retrograde alteration to chlorite + weak epidote (propyllitic),
and peripheral to the main zones of mineralization and potassic alteration the rocks have
been propyllitically altered. Argillic and sericitic alteration are periodically described
associated with zones of silicification and with the quartz-calcite-sulfide-magnetite
stockworks.
7.3.3 Mineralization: The gold-copper mineralization at Carmen is associated with the

hornblende tonalitic porphyry, and principally at the tonalite-andesite contact zone and
into the skarn altered tuffs and sediments where a network of quartz-calcite-sulfide-
magnetite-(hematite) bearing veinlets has been developed The mineralized stockworks
are considered to be formed by early magnetite-chlorite veinlets, followed by at least
three phases of calcite-quartz-sulfide veinlets. The first phase contained quartz-bornite,
followed by quartz-bornite-chalcopyrite and then calcite-chalcopyrite. The highest gold
grades are associated with the higher bornite-chalcopyrite contents. The main
mineralized body passes into a halo of fracture-filling and disseminated chalcopyrite-
pyrite-magnetite and outward into pyrite-calcite veinlets. Mo is locally important. Drilling
towards the core of the tonalite indicates that inner part of the mineralization (core)
passes into a very strong quartz-magnetite stockwork with virtually no sulfides.
32
From the surface to a depth of between 30-60 meters a variety of copper oxides and iron
oxides are developed as a result of oxidation of the sulfide mineralization. The drill logs
do not mention the presence of chalcocite. Typically, only minimal chalcocite
mineralization, or even a minor and irregular chalcocite blanket might be expected at the
oxide-sulfide interface for a low sulfidation (low pyrite) system.
The mineralization presents a zoned pattern: the core comprises quartz-bornite-

chalcopyrite-magnetite with 0.5 to 2 g/t Au and 0.3 to 1% Cu. The intermediate zone is
composed of quartz-chalcopyrite-pyrite-calcite with 0.1 to 0.5 g/t Au and 0.1 to 0.5% Cu.
The pyritic-propyllitic outer zone is carries 0.01 to 0.2 g/t Au and 0.01 to 0.02% Cu.
(Winters, 1998). Silver grades range from 2 to 5 g/t and the molybdenum values range
from 50 to 300 ppm.
Southwestern identified three zones of mineralization (based on their relatively high cut
off grade – 0.4% Cu equivalent) which are termed (Winters, 1998): the Western Zone,
the Eastern Zone and the Upper Eastern Zone (Figure 7.5 ).
1. The Western Zone outcrops and is located along the western tonalite contact. It
is more or less vertical, trends NS, is approximately 240 m long, 230 m deep and
averages 50 m in width.
2. The Eastern Zone occurs along the eastern tonalite contact immediately east of
the Canada Fault and trends NNW. This zone is essentially vertical to steeply
east dipping and is approximately 150 m long, 250 m high and 50 m wide. The
top and bottom of the eastern zone occurs at depths of between 90 to 160 m.
3. The Upper Eastern Zone outcrops to the east of the Canada fault and is a more
or less horizontal zone lying above the deeper Eastern Zone within the package
of skarnified tuffs and sediments. It is approximately 190 m long, has an average
width of 80-90 m and an average thickness (depth) of 70 m.
Figure 7.5 Carmen Project – Cross Section developed by

Southwestern Showing Interpreted Mineral Zones
A zone of similar mineralization to that seen in the Eastern Zone was probably present
above the Western Zone. However, it appears that it and the top of the Western Zone
33
have been eroded. The erosion of this zone may have provided the source of the placer
gold in the creek which follows the Canada Fault to the south.
Figure 7.6 – Carmen Project – MNI Interpreted

Mineral Intervals - Assay Cross Section – N7,031,050
Adapted from MNI, 2003
In view of the less restrictive cut off grade (0.25% Cu) that the author used to define
“mineralized intervals” in this report, it apparent that the Southwestern defined zones are
constrained, and that (as demonstrated in Figure 7.6 above) the mineralization, in
general terms has an overall moderate to steep dip (70o + 80o to the east) and that the
base of the mineral zones have not been defined by the current drilling.
7.3.5 Geochemistry: Copper-gold (chalcopyrite, << bornite) mineralization is

predominantly associated with and related to the quartz-(calcite) magnetite stockworks
that are largely developed in the tonalite porphyry proximal to the andesite contact and
at the tonalite porphyry-andesite contacts, as well as in the structurally prepared
tuffaceous and sedimentary skarns. Disseminated and fracture fill copper mineralization,
which is typically lower grade, bounds the central higher grade stockwork material. Very
low silver values are recorded through out the mineralized intervals and averages 1
ppm, and ranging between 0.013 ppm and 39 ppm. Molybdenum (Mo) values within the
defined mineral deposit typically are quite variable and range from the detection limit (5
ppm) to 1,500 ppm. Locally significant amounts of Mo occur with the quartz-calcite-
sulfide-magnetite stockwork veinlets.
7.3.6 Structure: Two principal faults are recognized - the NS trending Canada fault and
the WNW trending Pique Fault. The Canada Fault is considered to be an important
control for the emplacement of the intrusive stocks as well as the mineralization.
Furthermore the eastern portion of the deposit has apparently been dropped some 50 to
100 meters thereby preserving some portion of the mineralized tuffs/sediment skarns.
Other NW, NNE and other WNW trending faults have been identified. Southwestern
considered that the distribution of the volcanics and the sediments is controlled by “fault-
bounded NNE-trending basins” (Winters, 1998). Of particular interest is the Pique Fault
which is interpreted to trend WNW and to dip steeply north, located at approximately
N7,030,900. This fault appears to transect the central portion of the tonalite and the
associated mineralization, and to have displaced the southern portion of the
mineralization. The mineralization in the old Carmen shaft and adjacent workings plus
34
the mineralization encountered in drill holes CD-6 and CD-7 which are south of this fault
may represent part of the displaced mineralized zone to the south. Testing to the south
of N7,030,900 is minimal. Winters (1998) states that “when the Pique fault is plotted on a
reduced pole magnetic map approximately half of the Carmen (magnetic) anomaly lies
south of the fault”. If this interpretation is correct, then almost all the work that has been
performed to date at Carmen has taken place in the northern half of the
tonalite/mineralization and leaving open the potential to develop additional mineralization
within the displaced segment to the south of this fault. The author reiterates that
Colorado has not been provided with the results of the magnetometer survey.
In the eastern block, faults with a NE trend have been mapped. These appear to bound
a series of blocks with possible movements of up to 50 m. They do not appear to affect
the mineralization in a major way, although they may form the northern limit of the
eastern mineralized zones.
7.3.7 Project Geophysics: As previously indicated, Southwestern is reported to have

conducted an extensive ground magnetometer survey over the Carmen Property. This
data has not been made available.
8.0 DEPOSIT TYPE
The bulk of the exploration at Carmen has been directed at the discovery and
delineation of a bulk mineable low grade copper-gold porphyry deposit. Orion (1988-
2000) originally (per Winters, 1998) initiated exploration in search of low sulfidation gold
(copper) structurally controlled vein mineralization, and then switched their objective to
the search for a low grade copper-gold porphyry deposit. Southwestern, in 1996,
initiated an extensive exploration (mapping, magnetometer geophysics, trenching and
sampling and drilling) with the intent of expanding upon the mineral potential that had
been defined by Orion and utilizing the same structurally controlled porphyry copper-gold
model. The stockwork mineralization is the result of the emplacement of a widespread
low sulfidation copper/gold mineralizing system. A number of the quartz-calcite-sulfide-
magnetite veins/veinlets show characteristics including mineralization style, banding and
alteration) which are typical of low sulfidation-style epithermal vein mineralization.
Furthermore, the Southwestern drill logs make frequent reference to extensive
brecciation and in fact at one point talk about the development of a possible diatreme –
items which lead towards the conclusion that the mineralization is relatively high level
and epithermal. This appears to have been superimposed upon the potassic alteration
(K-spar) as identified by Southwestern, and which is more characteristic of a porphyry
copper (+molybdenum) model. The author considers that the skarn hosted copper-gold
mineralization is related to the same mineralization style (i.e. stockwork mineralization as
that seen in the tonalite porphyry) as opposed to a replacement model. However, the
tuffs/sediments locally show fine bands of magnetite>hematite+sulfides which are
probably the result of iron replacement or iron-skarn development.
The author considers that the Southwestern identified potassic/silicic/propyllitic alteration

seen at the deeper levels of the Carmen mineralization (as defined to date) possibly
represents the top (cupola) of a failed porphyry copper intrusive on which has been
superimposed a relatively high grade epithermal stockwork gold-copper system which is
reminiscent of the Maricunga-style porphyry gold-copper systems.
35
9.0 MINERALIZATION STYLE AND OCCURRENCE
9.1 MINERALIZATION TYPE: As discussed in Section 8 (Deposit Type) the

mineralization at Carmen consists of copper and gold (predominantly as sulfides)
mineralization which is hosted by at least three sets of quartz-calcite-sulfide
(cpy>py>bo+mo)-magnetite(>hematite) stockworks which are developed in a
combination of altered (potassic through propyllitic) tonalite and andesitic porphyry
intrusives, andesitic volcanics and metasomatized tuffs and calcareous sediments
(skarns). The disseminated sulfide content is relatively low at 1-3% total sulfides and of
considerably lesser importance than the stockwork mineralization. The various rock
types have been variously fractured, brecciated, crackle brecciated and otherwise well
structurally prepared. Through-going narrow quartz-calcite-adularia-gold-copper veins
(which have been the object of centuries of mining in the Inca de Oro district) have been
mapped as transecting the above described stockwork mineralization. Southwestern
may not have differentiated this through going set veins in its drilling.
Orion (1998-2000) and Southwestern (1996-1997) drilled a total of 56 (variably inclined

to vertical) diamond drill holes (for a total of 14,745 meters) on an approximate 50 meter
grid over an area approximately 450 meters EW x 370 meters NS. This drilling allowed
the generation of variation mineral potential estimations as described in Section 6,
Project History). The stockwork mineralization typically occurs as a series of northerly
trending, steeply easterly-dipping zones which have been developed within an area 350
meters long (north-south) and 210 to 320 meters wide (east west). The stockwork
mineralization has been defined to a maximum depth of 450 meters and is open at
depth. Various of the mineralized intervals (dependent on cut offs used) can be
reasonably projected down dip for at least 450 meters as currently drilled, and the author
believes that deeper drilling will extend these zones at depth.
The exploration/development drilling has determined that the level of oxidation extends
to a depth ranging between 30 and 60 meters below the surface. The bulk of the oxide
copper mineralization probably comprises chrysocolla and atacamite. Iron oxides and
locally manganese oxides are also found within this zone.
9.2 TARGET AREAS: Per LLaumet (2005), mapping, sampling and trenching
conducted to the north of the principal mineralized area suggests that, while the zone
pinches down somewhat, the mineralization can be traced for an additional +500 meters
to the north, and at least an additional 250 meters to the south. Additional potential is
likewise considered to continue to the west of the principal zone. Winters (1998)
considered that, based on their magnetic data, the mineralization that had been
developed and which is largely located to the north of the WNW trending Pique fault,
which is located approximately at N7.030,900 (Figure 7.4), represents about half of the
potential that could be developed i.e. this potential may be doubled to the south of the
Pique Fault. A second and regionally important fault (the Canada Fault) has down
dropped the western half of the deposit. The defining features for the potential extension
of the mineralization appear to be coincidence of the NS and NNW trending narrow (0.5-
1 meter wide) quartz-calcite-adularia-gold-copper veins which are contained with
Llaumett’s mineral potential envelope (Figure 12.1) and the extensive zones of altered
and stockworked rocks, both to north and south of the principally defined mineralization
at Carmen. The trench and sample results that has been obtained to date supports this
concept. Figure 9.1 depicts the areas considered to have exploration potential at
36
Carmen and are those areas shown in dashed green lines. Additionally (and not
indicated is the potential considered to exist immediately to the west of the currently
defined mineralization.
Figure 9.1 Carmen Project Exploration Potential
Adapted from Llaumett (2005)
10.0 EXPLORATION
Colorado has not conducted any exploration on the property to date. Per Section 20,
Colorado has prepared Phase I and II budgets totaling US $3,325,000 which funds will
be used to:
• Perform limited and confirmatory mapping and sampling, including performing

check sample work on portions of the remaining drill core; and additional
trenching and sampling;
• Initiate drilling to expand the potential mineral deposit along trend with the
known mineralization.
37
• Prepare a resource estimation based on the drilling that has been performed to
date plus the additional proposed Phase II work which will allow the estimation
of resources in conformity with CIM and NI 43-101 estimation standards;
11.0 DRILLING
Orion drilled an unspecified number of percussion holes (for which there is no data
available), before diamond drilling 23 drill holes ca 1989 at the Carmen Property on an
approximately east-west grid as depicted in Figure 6.1. Orion is stated to have been
initially interested in exploring the potential of one or more northerly trending gold
bearing structures, and then shifted its focus to the copper porphyry potential as a result
of the data generated from the percussion drilling (Section 6, Project History).
Orion drill a total of 2,988.5 meters in 23 vertical diamond drill holes, the lengths of which
varied between 12 and 210m and averaged approximately 130m. The author is not
aware of which company performed the drilling for Orion. The diameter of the drill core
was probably NQ (47 mm), although this is not known. The first 11 holes were generally
sampled at 1-meter intervals with occasional 2 meter sample runs; subsequently the
bulk of the holes were generally sampled at 2 meter intervals. The data does not provide
an indication of what the core recoveries might have been; based on the Southwestern
core recoveries (i.e. rock conditions), the author is inclined to believe the core recoveries
were acceptable and probably in the plus 90% range. As previously indicated the author
does not know what sample preparation techniques were used (i.e. whether the core
was sawed or guillotine split), which laboratory analyzed the core, and what techniques
were used to assay for the copper and gold, or what, if any, QA/QC work was done with
regard to assure that the assays were properly performed. No drill logs were made
available and the author can not comment on the quality of the drill logs prepared by
Orion. Table 6.2 lists the holes drilled by Orion and provides the hole coordinates,
orientations, and lengths drilled.
Southwestern drilled the Carmen Property during the period December, 1996 through to
July, 1997, when they drilled 11,796.3 meters in 33 diamond drill holes; the lengths of
which varied between 151 and 581.5m and averaged 357.5m. The following summarizes
the Southwestern drill orientations:
• 10 holes drilled at 090o;

• 13 holes drilled at 270o and at inclinations of -50o to -65o;
• 3 holes drilled at 240o and at inclinations of -60o to -75o;
• 7 holes drilled and at inclinations of -50o to -70o;
Southwestern contracted PerfoAndes to drill at Carmen. The diameter of the drill core
observed in Copiapo is HQ (63 mm) and NQ (47 mm). Southwestern states that at 350
meters depth they automatically switched to an NQ core barrel. The first 15 holes were
sampled at 1-meter intervals; subsequently, the balance of the holes was sampled at 2
meter intervals. The drill logs provided do not indicate core recoveries. The author was
not able to accurately determine core recoveries because of the frequently very
disturbed condition of the core; however, in general the recoveries appeared to be
acceptable and in the plus 90% range. The core was variously sawed or guillotine split.
The drill logs indicate that the drill hole samples were submitted to the CIMM laboratory
38
in Santiago, which laboratories is known and recognized in Chile for the quality of its
work. As indicated previously, the samples were routinely assayed for total copper, gold
and generally molybdenum and silver. Drill hole CDDH-1 was the only hole assayed for
arsenic. The author has no knowledge with regard to the QA/QC practices instituted by
Southwestern to ensure the quality and integrity of its sampling. No data has been made
available which suggests that the either the Orion or the Southwestern drill holes were
down-the-hole surveyed.
The author check logged selected intervals for a number of the holes that were drilled by
Southwestern. This check work confirmed that the core had been properly logged and
that the mineralization was generally properly identified and corresponded to those
intervals which carried higher grade copper and gold values.
The available Southwestern core boxes were generally clearly marked and identified
with the DH number and the contained interval, and the core interval markers are
generally properly marked. In a number of instances there has been a “jumbling” of the
split core as a result of being variously moved and stored in different places.
Mineralization at Carmen comprises two types:
1. quartz-calcite-gold-copper vein swarms which generally trend 355o and vary

between 340o and 005o;
2. (the principal) quartz-sulfide stockwork (porphyry copper-gold) mineralization

which shows an overall northerly (355o) trend and within which the mineralized
zones (per the applied cut off) on the average dip at 65-80o to the east. Locally,
the individual mineral zones (as defined by the assay composited interval)
appear to vary in dips which range from approximately 50o E to nearly vertical –
these changes in dip may be in part a reflection of the lack of down-the-hole
surveying and control of the drill hole, improperly projected intersections, etc.
The drilling conducted by both companies confirmed and generally coincided with the
mineralized target which had been defined by the previously conducted surface
sampling and trench data and which has dimensions of on the order of 400 meters x 500
meters. Table 6.1 (Section 6, Project History) lists the composited surface channel and
trench sampling with approximate locations. Tables 12.2 and 12.3 list the bulk of the
significant drill hole intervals as defined by the author and which include a minimum of
10 meters of material with a composited grade >/= 0.25% Cu (plus the contained gold).
The number of samples per mineralized interval (i.e. a minimum 10m interval with Cu
grades in excess of 0.25% Cu) as defined by the author and as shown in Tables 12.1
and 12.2 varies from either 10 samples (if assayed at 1 meter intervals) or 5 samples (if
assayed at 2 meter intervals). The maximum number of samples included in any one
composited interval for both data sets (whether 1 or 2 meter intervals were used) is 153
samples (drill hole CD-01 – 1 to 154 meters).
The estimated true widths of the mineralized drill hole intercepts was derived from
measuring the indicated true width (i.e. at right angles to the interpreted dip) of the
+.025% Cu intervals as interpreted in the cross sections. The estimated true widths of
the mineralization are at best approximations and should be viewed as just such,
particularly in that it appears that only minimal geological input (the principal faulting)
39
was incorporated into the development of the cross sections. Generally speaking the
sections have been developed at an approximate right angle to the trend of the mineral
zone(s), which trend at approximately 355o to 005o, which allows for more accurate
direct measurement of the true widths, as opposed to having to factor in the angle of the
actual trend.
Table 12.1 - Orion Significant Drill Hole Intercepts (=/+10m/ =/> 0.25% Cu + Contained Au)
Est. True
Interval in meters Grade Max. 2 (1) m Assay in Interval
Thickness
Drill Hole
Cu - Au - Au - Interval
From To Total Cu - % m
% ppm ppm m
1 154 153 0.48 0.93 2.48 6.66 75-76 nk

CD1
160 178 18 0.35 0.59 0.58 1.13 173-174 nk
CD2 58 106 48 0.45 0.71 1.44 0.39 76-77 18
11 55 44 0.47 0.87 2.20 4.60 30-31 24

CD4
75 93 18 0.35 0.51 0.62 0.13 75-76 10
32 56 24 0.43 0.61 0.63 0.75 34-36 18
68 80 12 0.36 0.60 0.49 0.42 72-74 10

CD6
96 108 12 0.30 0.50 0.47 0.40 96-98 18
116 130 14 0.38 0.18 0.97 0.23 124-126 10

CD7 4 74 70 0.50 0.85 1.43 2.57 11-12 40
CD9 64 74 10 0.31 1.04 0.38 1.71 68-69 nk
31 47 46 0.29 0.35 0.54 0.50 44-45 nk

CD10
56 152 96 0.64 0.79 3.67 1.30 120-121 nk
1 17 17 0.36 0.34 0.51 0.25 10-11 9

CD11
82 94 12 0.33 0.18 0.75 0.58 82-83 9
2 12 10 0.38 0.46 0.58 0.40 4-6 nk
CD12 28 40 12 0.38 0.95 0.44 1.18 36-38 nk
52 86 34 0.39 0.55 0.47 0.75 98-100 nk
8 22 14 0.30 0.12 0.58 0.07 18-20 10
38 54 16 0.39 0.31 0.70 0.39 46-48 12

CD13
60 72 12 0.31 0.33 0.27 0.37 148-150 8
164 176 12 0.41 0.66 0.61 0.27 38-40 8

CD14 88 98 10 0.29 0.19 0.56 0.37 188-190 8
0 16 16 0.50 0.34 0.42 0.27 54-56 nk

CD16
84 94 10 0.33 0.44 0.36 0.58 86-88 7
0 48 48 0.36 0.27 0.76 0.62 30-32 nk

CD18
54 107 52.5 0.29 0.22 0.40 0.28 56-58 40
0 10 10 0.46 0.34 0.68 0.19 4-6 nk

CD19
30 40 10 0.38 0.60 0.75 1.26 30-32 6
CD20 14 34 20 0.32 0.26 0.65 0.40 18-20 16
40
CD22 10 22 12 0.38 1.16 0.55 1.82 20-22 nk
nk – not estimated; interval is contained with a wider mineral interval, and/or geology is not understood at this time
Table 12.2 - Southwestern (1997) Significant Drill Hole (=/+10m =/> 0.25% Cu + Contained Au) Intercepts
Max. 1 (2) m Assay in Est. True

Interval in meters Grade
Drill Interval Thickness
Comments
Hole Cu - Au - Cu - Au -
From To Total Interval m m
% g/t % g/t
17 32 15 0.37 0.30 0.54 0.5 17-18 13
includes 5 meters no
105 163 58 0.57 1.01 1.05 1.6 127-128 32
data
CDDH-
includes 4 meters no
01 169 306 137 0.62 1.24 3.39 3.5 301-302 70
data
310 340 30 0.44 0.69 1.92 1.1 312-313 20
350 360 10 0.49 0.55 0.83 1.3 355-356 7
0 56 56 0.43 0.46 0.78 0.8 43-44 nk drilled down dip
CDDH-
264 276 12 0.50 0.78 1.32 2.9 268-269 6
02
330 341 11 0.49 1.03 0.77 1.6 335-336 5
348 374 26 0.42 0.62 0.63 2.6 355-356 15
391 401 10 0.35 0.60 0.46 0.9 399-400 5
CDDH- 149 161 12 0.31 0.38 0.44 0.8 157-158 8
03 198 209 11 0.31 0.28 0.57 0.6 205-206 9
13 45 32 0.35 0.23 0.54 0.3 23-24 17
59 94 35 0.51 0.38 1.15 0.3 90-91 20
CDDH- 107 150 43 0.37 0.41 2.44 3.4 118-119 25
04 251 270 19 0.3 0.33 0.60 0.5 267-268 10
396 414 18 0.32 0.30 0.51 0.4 406-407 12
512 542 30 0.38 0.36 0.83 0.7 533-534 16
41 54 13 0.33 0.18 0.72 0.61 43-44 7
84 94 10 0.4 0.36 0.75 0.68 86-87 4
112 123 11 0.39 0.33 0.58 0.61 114-115 3
CDDH- 130 172 42 0.47 0.85 1.18 3.33 170-171 12
05 181 194 13 0.33 1.01 0.5 3.08 193-194 4
200 219 19 0.36 1.11 0.82 0.98 204-205 4
230 262 32 0.62 2.20 3.35 10.3 241-242 5
343 376 33 0.33 0.39 0.56 0.58 364-365 8
CDDH- 153 180 27 0.36 0.14 0.86 0.3 153-154 18
06 191 238 47 0.43 0.22 0.91 0.6 209-210 23
92 106 14 0.38 0.28 0.56 0.4 104-105 9
153 167 14 0.37 0.46 0.75 1.2 154-155 9
182 192 10 0.3 0.36 0.36 0.3 186-187 6
only averaged
231 284 53 0.50 0.56 nk interval data
available
182 192 10 0.3 0.36 0.36 0.3 186-187 nk
210 231 21 nk no data available
CDDH- only averaged
07 interval data
231 311 80 0.50 0.26 38
available; partial
data available
232 242 10 0.38 na 1.03 na 237-238 nk
only averaged
311 328 17 0.24 0.11 nk interval data
available
only averaged
410 440 30 0.32 0.30 20 interval data
available
0 64 64 0.44 0.36 38 only averaged
CDDH-
64 111 47 0.25 0.19 28 interval data is
08
249 430 181 0.27 0.33 110 available
41
0.6 44 43.4 0.55 0.36 0.90 1.0 13-14 41
52 80 28 0.39 0.30 0.61 0.7 79-80 20
88 158 70 0.52 0.89 0.94 1.7 103-104 46
CDDH-
175 202 27 0.38 0.46 0.61 0.7 191-192 23
11
208 218 10 0.28 0.36 0.40 0.4 217-218 9
228 246 18 0.36 0.39 0.53 0.5 235-236 16
281 305 24 0.35 0.26 1.08 0.6 288-289 20
mineralization at end
1.2 18 16.8 0.51 0.31 1.14 0.7 13-14 10
CDDH- of hole
12 228 245 17 0.39 0.63 1.06 1.8 240-241 20
267 277 10 0.4 0.31 0.63 0.7 267-268 4
CDDH- EOH - no data
297 319 22 nk
13 available
CDDH- 89 139 50 0.36 0.18 0.83 0.4 126-127 43
14 273 284 11 0.33 0.15 0.54 0.2 283-284 9
CDDH-
72 86 14 0.31 1.95 0.46 3.7 80-82 4
15
CDDH- 242 254 12 0.38 0.21 0.80 0.2 244-246 10
17 272 346 74 0.64 0.98 1.46 2.2 306-308 nk
182 194 12 0.43 0.12 0.54 0.1 182-184 11
CDDH- 214 240 26 0.33 0.15 0.56 0.2 218-220 18
19 260 280 20 0.37 0.24 0.69 0.5 274-276 15
288 302 14 0.49 0.17 1.09 0.4 292-294 8
CDDH- 60 70 10 0.3 0.12 0.36 0.2 68-70 8
20 256 280 24 0.35 0.28 0.65 0.4 278-280 11
CDDH-
216 226 10 0.28 0.48 0.34 0.69 220-222 nk
21 drilled down dip
CDDH- 14 46 32 0.35 0.37 0.70 0.4 18-20 8
22 52 98 46 0.36 0.80 0.65 4.06 80-82 12
CDDH- collared in
2.2 24 21.8 0.45 0.82 0.72 1.5 14-16 nk
23 mineralization
CDDH-
54 168 114 0.83 0.83 1.53 1.53 62-64 65
24
188 198 10 0.49 0.51 0.66 0.43 192-194 9
266 296 30 0.42 0.38 0.68 0.68 280-282 21
CDDH- 302 314 12 0.44 0.45 0.88 0.5 304-306 8
25 384 394 10 0.32 0.26 0.52 0.32 392-394 8
398 426 28 0.36 0.35 1.08 0.9 410-412 24
438 448 10 0.33 0.20 0.54 0.38 446-448 10
collared in
3.05 16 13 0.27 0.06 0.59 0.22 4-6 13
CDDH- mineralization
27 34 138 104 0.38 0.35 0.77 0.28 52-54 104
148 158 10 0.37 0.26 0.44 0.17 156-158 10
CDDH-
28 48 20 0.29 0.11 0.48 0.11 40-42 18
28
272 286 14 0.3 0.21 0.40 0.23 282-284 12
318 362 44 0.35 0.26 0.73 0.83 358-360 37
CDDH- 162 172 10 0.35 0.20 0.57 0.4 170-172 9
29 230 250 20 0.44 1.05 0.88 0.38 236-238 14
collared in
0.7 22 21.3 0.32 0.25 0.53 0.29 0.7-4 18
CDDH- mineralization
30 28 56 28 0.25 0.21 0.42 0.26 30-32 25
102 112 10 0.31 0.38 0.35 0.43 106-198 9
96 192 96 nk no data
CDDH- 208 240 32 0.29 0.24 0.48 0.41 226-228 nk
31 intervals ends in
256 376 120 0.66 0.99 1.52 1.58 316-318 nk
+0.25% Cu
CDDH- 122 148 26 0.43 0.26 2.00 0.18 138-140 13
32 170 180 10 0.37 1.14 0.56 2.01 174-176 8
CDDH-
144 236 92 0.51 0.85 1.85 4.48 168-170 75
33
nk – not known and/or not estimated
There is a suggestion that the drilling which was conducted, either vertically or inclined
towards the east, and therefore generally paralleling the interpreted steep (typically)
42
easterly dip of the mineralized zones, has generated results (assay intervals) which may
not be necessarily representative of the true width of the mineral zone and which may be
biasing any potential mineral deposit evaluation/estimation. This is not an optimum
manner in which to drill dipping mineralization i.e. in the direction, or parallel to, the dip,
and while the data can be utilized, it is important that the manner in which it is weighted
into any calculation be done with caution. This concern is reinforced by lower average
mineral interval vs. true width estimation ratios (0.5) which vary between 0.16 to 0.87 for
the CDDH holes that were drilled with an either vertically or easterly orientation vs. those
drilled that were drilled with a westerly orientation and which were designed to transect
the interpreted steep easterly dip of the mineral zones and which returned a significantly
higher average ratio for the mineral interval vs. true width estimation ratios (0.8) and
which vary between 0.4 to 1.0.
The comparison comprises 41 mineralized (measurable) intervals for the vertical/

easterly drilled holes vs. 37 mineralized intervals for the westerly oriented holes. The CD
(Orion) drilling which consisted predominantly of vertical holes likewise returned a
somewhat lower average mineral interval vs. true width estimation ratio – an average of
0.7, and ranging between 0.4 to 0.8.
Table 6.1 (Section 6, Project History) and Figure 12.1 indicate the frequency and
intervals over which the surface chip channel and trench samples were taken (and for
which results are available). The original placement (and assay results) of the surface
channels and trenches appears to have been of an adequate density to initially provide
Orion with the general area within which to drill. Subsequent trench sampling by
Southwestern does not appear to have changed the nature or size of the principal target
area, and they continued to drill within the general area defined by Orion. Both
companies generally drilled on a 50 meter grid pattern, with Southwestern drilling a
combination of deeper holes and also more complete infilling the grid drilling.
Southwestern’s drilling appears to have been intended to confirm and amplify on the
Orion results. This work allowed Southwestern to make preliminary estimations with
regard to the potential of the mineral deposit (refer to Section 6, Project History) which
had been defined by both companies.
It is the opinion of the author that the lack of down-the-hole surveying will impact on the
interpretation and orientation of the mineralized zones and therefore the resource
estimations (CIM/NI 43-101 compliant) at the time that they are performed. It should
further be stressed that there is no evidence in the data provided to suggest that any of
the “resource estimations” indicated Section 6, (Project History) utilized the drill hole
geology. The potential mineral deposit estimations appear to have been based entirely
on projecting the composited mineral assay intervals from drill hole to drill hole, across
sections, and to the surface, and in part apparently utilizing the trench composites that
have been plotted on the sections to support the projections to the surface.
That portion of the mineralization which is oxidized must be evaluated as either a copper
oxide mineralization or as a gold mineralization, as the metallurgy of oxide copper and
gold is currently not compatible.
43
12.0 SAMPLING METHOD AND APPROACH
As indicated in Section 6, Project History, Orion and Southwestern extensively surface

channel and trench sampled the principal (currently) mineralized zone at Carmen, and
the subsequent drilling was designed to test the indicated mineralized area. Ca. 1999
MNI took a series of chip-channel and trench samples in part was designed to test the
northern extension of the gold-copper quartz veins and which results are included in
Table 6.1 and shown Figure 12.1). The Orion/Southwester/MNI trenches were cut
across a 700 m (NS) by ~200 meter EW zone at intervals ranging of ~30 to 100m and
generally straddling (or across the westerly portion of) the mineralized zone. East-west
cross sections developed at 50 meters interval from N7,030,800 to N7,031,150 show
composited results of certain of the MNI the surface channel/trench sample results. The
primary assay data for this work has not been provided.
Figure 12.1 Carmen Project – MNI Chip Channel and Trench Sample Data
As indicated in Section 6 (Project History), Drilling, Orion was the first company to
conduct a drilling campaign at Carmen. Initially it drilled an undisclosed number of
percussion holes and then it drilled 23 vertical diamond drill holes within a 350 x 350
meter area, along generally east-west trending lines at ~50 meter intervals. The drill hole
intervals typically are on the order of 50 meters apart and occasionally to 150 meters.
Orion apparently may have twinned its holes CD-6 and CD-7 and which over a limited
range (26 2-meter samples) returned very limited correlative values. However, the drill
plot of the two holes indicates that CD-6 was drilled at -60o to the west (as opposed to
the spreadsheet data which indicates that it was vertically drilled) versus CD-7 which
was drilled vertically (which fact would explain the lack of correlation). The orientation of
these drill holes should be checked in the field.
No Orion drill hole logs are available which can be used to check for lithology, rock
types, mineralization, etc., as a result of which the drill hole data can not be directly
verified. However, the assay plots generally appear to correlate with the projections
which have been made based on the Southwestern logs and data.
Southwestern drilled 33 diamond drill (CDDH) holes during 1996 and 1997 within an
area 350m north-south x 450m east-west. These holes were generally drilled on east-
west lines on an approximate 50 meter grid spacing. Thirty percent of the CDDH holes
were drilled vertically and the balance at varying orientations as indicated in Table 6.2.
44
The author has insufficient information to discuss the quality of the trench and surface
channel sampling that was conducted at Carmen. Likewise, the author has no
information with regard to the quality of the drill sampling (core handing procedures,
QA/QC, transportation to the laboratory, laboratory procedures) that was conducted by
Orion.
Southwestern (1998) indicates that the core was boxed by the drill contractor and a
company technician calculated the core recovery. The core was then split (cut) and half
sent for analysis. Originally the core was sampled every meter, but half way through the
program Southwestern decided to take samples every 2 meters.
The author has no knowledge with regard to what, if any, factors in the sample handling,
laboratories procedures, etc., may have resulted in sample biases.
As has been indicated previously, the core was split and sent for assay based on taking
either a 1 meter interval or a 2 meter interval samples. There is no suggestion that the
rock type, widths of mineralized zones, fault zones or other geological controls or
parameters were used to establish the sampling interval.
13.0 SAMPLE PREPARATION, ANALYSES AND SECURITY
Both Orion and Southwestern diamond drilled the Carmen Property. There is no core, or
other material (pulps, rejects), available from the drilling (CD holes) that Orion
performed. No core is available for 6 of the 33 CDDH holes that were drilled by
Southwestern; and, a small (but unknown) percentage of the core (boxes) from the
available core is missing. There are no pulps or rejects available from the Southwestern
drilling.
The assay data provided (in excel format) indicates that the CD core samples were
predominantly taken at I meter intervals, with occasional samples being taken at 2 meter
intervals. Orion assayed their samples for Cu and Au. The author likewise has no
information with regard to what assay laboratory was used by MNI, or what (if any)
standards, duplicates, etc were introduced in to the sample stream.
Southwestern variously sawed or guillotine split the core. The splitting appears to have
been properly done. Based on a review of a limited number of core boxes from selected
drill holes, the author considers that the core recoveries were most probably in the plus
90% range.
Southwestern indicates that in the first half of the CDDH drilling the samples were taken
at 1 meter intervals and that thereafter they switched to sampling at two meters intervals.
The samples were sent to CIMM in Santiago. The Cu, Ag, and Mo was analyzed by
atomic absorption (AA) methods and the gold using fire assay and an AA finish. They
state that 1 of every 5 samples were checked assayed for gold and 1 out of 10 for Cu,
Ag and Mo. This check work was largely done by the same laboratory using the same
sample number. The data was provided by fax and by a follow-up copy and also by
diskette. Southwestern states that only very occasional did they send check samples
(rejects) to a second laboratory (SGS Chile Ltda in Santiago) and that the results were
“visually” acceptable.
45
As discussed in Section 6, Project History, the drill hole sample results generated by the
two companies in the two separate drill campaigns appear to be very comparable with
regard to the copper values, and less so with regard to the gold values.
MNI reportedly (Section 6, History) trenched (15 trenches) and sampled the property on
a systematic basis. However, no assay data has been provided and the author has no
information with regard to how the samples were taken, etc.
14.0 DATA VERIFICATION
As indicated in Section 13, the author has been provided with only very minor primary
data with regard to the work that has been done at Carmen to date. There is no
information with regard to the drilling that was performed by Orion (CD holes) other than
the Excel spreadsheets showing the assay, interval and drill hole location data.
The drilling that was performed by Southwestern is backed up by most of the core
(which is stored in Copiapo) and by predominantly handwritten summary drill logs. The
assay data and drill hole location information is available in electronic (Excel) format.
MNI has compiled geologic maps of the Carmen-Oky Project scales of 1:1,000 and
1:2,000 which depict the geology, drill hole locations, trenches and topography. They
have also prepared drill hole cross sections which have been made available. As
indicated in Section 6, Project History, MNI reportedly sampled 15 trenches (60
samples) within the principal Carmen zone. None of the trench sample assay data are
currently available to the author.
The author was provided with copies of 4% of the CDDH original drill hole sample
(CIMM) certificates which were used to check against the spreadsheet data entry. This
check determined that 10% of the available data had been incorrectly entered. The
author has had to rely on the balance of the assays on data that was transferred
manually into Excel spreadsheets and which is not backed up by original certificates. In
a few instances where there is no backup; a review of the assays points to occasional
obvious data entry errors (in at least one case a copper assay of 50% Cu was entered,
and in another an assay of 75 g/t Au was entered). In other instances, the assay data
had been composited and no individual assays were available to check the quality of the
compositing.
A statistical comparison of the two sets of drill hole data (Orion and Southwestern)
indicates that the copper and gold assay results obtained by these companies at
Carmen are generally comparable and that the drill hole copper assay data can most
probably be used to estimate resources. It should be pointed out that both Orion and
Southwestern were (are) known to be serious companies and that in all probability the
work, sampling, etc., done by these companies was properly and correctly performed to
industry standards at the time that they did their work. They also most probably used
industry accepted laboratories at that time of drilling.
The author verified the existence of the Southwestern drill holes in the field and
generally confirmed that the area has been extensively drilled. The author did not
confirm the existence of the Orion drill holes. Furthermore, while checking selected drill
46
hole locations (as discussed below) the author determined the existence of at least two
drill (probably RC type) holes whose locations do not correspond to either Orion or
Southwestern drill hole locations which has been provided – these holes most probably
correspond to the early Orion undocumented percussion holes. The author confirmed
that the property has been extensively trenched; however no specific sample sites were
identified or check sampled.
The author has confirmed that the Carmen area is variably altered and mineralized and
that the rock types are as reported. Copper oxides were observed on the property.
The author has previously visited the Carmen area and specifically visited the property
site on December 21st, 2005 and personally took one rock chip sample and two (6-9 cms
long) character samples of the Southwestern (split) core as described below in Table
14.1 and which returned the results listed in Table 14.2. The sample chip sample
weighed approximately 2-3 kgs and was taken at the eastern edge of the glory hole at
Carmen. The samples are intended only to confirm the anomalous nature of the
material. The verification sampling generally confirmed the existence of Cu-Au
values/mineralization at Carmen. The samples taken were carried by the author to
Santiago, Chile where they were personally transferred to the Acme Analytical
Laboratory for analysis. The laboratory has been, inspected on various occasions by the
author for sample procedures, cleanliness and methodology, all of which have appeared
to be of industry standard quality. Acme Analytical Laboratory has an industry-wide
reputation for providing reliable analyses, and is ISO-9001;2000 certified.
Table 14.1 - Carmen Project - M. Easdon Character Sample Descriptions

Sample
No Northing Easting Observations
sample taken on NE end FW side of narrow open cut driven on

230o/stp E mineralized zone ~ 3m wide; rx mapped as tonalite
porph; close spaced silic and Cu min (oxid) structs 10-15 cms
CAR-01
7,030,841 405,489 wide over + 3m; note flt gouge over 1 cm on 130o/60S struct;
consid yell-brwn FeOx and jarosite dev on fracs/flts; text gen
destroyed.
DH-CDDH-02; 1" core sample taken in interval check logged from

112.4-130.75m; loc bxd and angular-subrounded; andesitic
porphyry; loc intensely silicified; qtz stkwks and silica flooding,
CAR-02 na na
with weak diss cpy in core of qtz veins and as c. diss cpy-py in qtz
veinlets; at 128m have banded CaCO3-SiO2 (epithermal charac);
loc mag.
DH-CDDH-17; 1" sample taken from interval check logged 299.2-

309.5m; interval logged as porph tonalite; chl-mod sil; plag alted
to clay; mod -intense qtz-CuOx-spotty vfg +cpy_bo (py)- pyrr wk
CAR-03 na na
diss and as seams in qtz veins; Kspar altn assoc with strg
silicification; +mod mag; poss skarn bnds as inclusions in tonalite;
qtz vning millimetric- +2" pinch/swell.
na – not applicable
47
Table 14.2 - Carmen Project - M. Easdon Character
Sample Assays
Au CuT CuS Ag Mo
Sample No.
g/t % % ppm ppm
CAR 01 3.62 1.314 1.312 1.4 12
CAR 02 1.19 0.528 0.059 1.4 7
CAR 03 0.72 0.330 0.037 1.4 10
The values obtained for the two character core samples fall within the range of values
obtained by Southwestern for the intervals sampled.
The author confirmed that the property had been diamond drilled as indicated and that 2
of 5 drill holes that were field checked were properly identified. Most of the drill holes
noted had either steel or plastic tubing extending out of the hole and which was
cemented in place. Where examined and identified the orientation of the holes were as
indicated. The GPS checks of the identified drill hole locations are generally consistent in
the shift of the coordinates, as demonstrated in Table 14.3. This consistency in the
differences between the Southwestern coordinates and that of the author suggest that
Cyprus may have used a datum other that typically used in Chile which is the Provisional
South American ’56 datum. The author recommends that Colorado re-survey all of the
drill holes on the Carmen property to conform with the Provisional South American ’56
datum, as well as to locate and possibly begin to identify the unknown drilling.
Table 14.3 - Carmen Project - Easdon Drill Hole Location Verification Results
Southwestern Easdon
Drill Hole Coordinates Coordinates * Difference in Meters
ID
Northing Easting Northing Easting Northing Easting
CDDH-08 7,031,100 405,400 7,031,061 405,421 39 (21)
CDDH-10 7,031,196 405,752 7,031,162 405,768 34 (16)

no ID
probably
7,030,900 405,250 7,030,861 405,269 39 (19)
CDDH-26
no ID-other
dna dna
company 7,030,862 405,268
no ID-other
dna dna
company 7,031,278 405,474
* Relative to Southwestern Coordinate; dna - data not available
Colorado should plan on getting the original drill hole assay data (certificates) from either
Southwestern or directly from CIMM (if possible). It is obvious that from the very small
percentage (4%) of the drill hole assays checked that a disproportionate number of
assays (10%) were erroneously transferred to the excel database and any resource
estimation may be impacted, unless this defect is corrected. Furthermore, the lack of
down-the-hole surveying likewise will impact the accuracy of any interpretations and
thereby estimations performed. Prior to initiating any resource estimations, Colorado
must plan on drilling a number of confirmatory drill holes which hopefully will allow them
48
extenuate the above listed failings and thereby to use the bulk of the drill hole data
previously generated. The drill hole statistics indicate that the copper and gold values for
both sets of data (CD and CDDH) are valid and should be useable.
15.0 ADJACENT PROPERTIES
As discussed previously (Section 4 - 4.2 Description) an estimated 36% of the potential

mineral deposit as defined by Carrera, J., 2006 is contained on the Providencia
concessions (with accrued extra-lateral rights) which concessions are not only adjacent
to the Carmen (GAM) concessions, but are enclosed by them (the GAM concessions).
Figure 6.1 clearly shows that Orion and Southwestern drilled within the current Carmen-
Oky and Providencia concessions. In the event that Colorado decides that it wants to put
in a mining operation, acquisition of the Providencia concessions, etc., will be critical.
Furthermore, the trench sampling conducted by MNI to the north of the principal Carmen
mineralization, which in part defines the northerly exploration potential, constitutes land
which should be part of the total Carmen, i.e. Colorado, package. However, and as
required to be stated by NI 43-101, the author has been unable to verify the information
with regard to the northern exploration potential and this information is not
necessarily indicative of the mineralization on the property that is the subject of
the technical report.
16.0 MINERAL PROCESSING AND METALLURGICAL TESTING
The author is not aware of any mineral processing or metallurgical testing that has been
performed on material which has been taken from the Carmen property.
17.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES
No resources have been estimated for the Carmen mineral deposit which are CIM 2000
or NI 43-101 compliant.
18.0 OTHER RELEVANT DATA AND INFORMATION
There are no other factors currently known by the author which may influence the results
of this report.
19.0 INTERPRETATION AND CONCLUSIONS
Past exploration conducted by Orion and Southwestern on the Colorado-controlled

Carmen Project, Inca de Oro District, Region III, Chile, indicates that a low grade
copper-gold potential mineral deposit has been defined, and that there is exploration
potential to the north, west and to the south to expand and augment this mineralization.
Historic and/or more current “resource” estimations have been variously estimated for
the Carmen deposit. The potential quantities and grades indicated are conceptual in
nature and there has been insufficient exploration to define a mineral resource on the
49
property and it is uncertain if further exploration will result in discovery of such mineral
resources on the property. These estimations are:
1. not CIM/NI 43-101 compliant;

2. have not been reviewed nor verified by a “Qualified Person”;
3. and, Colorado has not considered categorizing any of these estimates as
resources.
These potential mineral deposit estimations (as detailed in Section 6, Project History)
have been performed using different Au-equivalent cutoff grades (MNI and Beniscelli)
and a Cu-equivalent grade (Southwestern), per the following range of tonnages and
grades as summarized in Table 19.1.
Table 19.1 - Carmen Potential Mineral Deposit

Estimates
Cut Off Grade

Tons Cu Au
Equivalent
% g/t
1 g/t Au 15,000,000 0.4 0.7
0.7 g/t Au 30,000,000 0.3 0.5

1 g/t Au 29,000,000 0.4 0.7
0.7 g/t Au 41,000,000 0.4 0.6
0.4% Cu 13,000,000 0.4 0.6
To date, Colorado has not conducted any exploration on the Carmen Property, beyond
doing the appropriate due diligence prior to entering into “Option to Purchase”
agreements with two of the property holders. The optioned concessions are considered to
contain the majority (64%) of the Carmen mineralization (Carrera, J. 2006) as tabulated
above.
The exploration/development that has been conducted to date by Orion, Southwestern

and by MNI on the Colorado-controlled Carmen concessions located in the Inca de Oro
Gold-Copper District, Region III, Chile, suggests that there is room to expand the
potential mineral deposit. This potential is considered to exist continuing to the south of
the defined mineralization (south of the Pique fault) for a distance of at least 250 meters;
to the west for ~ 100 meters; and, to extend to the north for a distance of at least 500
meters; however, Colorado currently controls only approximately 200 meters of this
northern strike extent after passing through the Providencia concession and related
property (refer to Figure 4.3).
Extensive channel chip and trench sampling conducted by Orion (1988-1990) and
Southwestern (1996-1997) resulted in the definition of a copper-gold geochemically
anomalous area, with dimensions of approximately 400 m NS by 450 m EW and within
which past small-scale mining had been conducted. Colorado does not have the details
of the sampling that was done by either of these companies. In 2000-2003 MNI
extensively channel chip and trench sampled the Carmen Property and posted this data
on the MNI generated cross sections. The sampling conducted by Orion, presumably in
conjunction with the percussion drill results, was apparently sufficiently encouraging that
Orion diamond drilled 23 (2,988.5 meters) relatively shallow (12 to 210 meters) vertical
holes on an approximate 50 meters grid within this zone. When Southwestern optioned
50
the property they conducted more trenching and sampling before continuing, and
expanding the systematic grid diamond drilling that had been initiated by Orion.
Southwestern drilled a combination of vertical and inclined holes to depths of up to 550
meters. Southwestern drilled 33 holes for a total of 11,796.3 meters. By 1998 when
Southwestern returned the property, a total of 56 holes (14,785 m) had been diamond
drilled. Subsequently, in 2000 to 2003 MNI optioned the Carmen property, compiled the
available data and conducted the above indicated channel chip and trench sampling.
The Orion/Southwestern drilling intersected widespread relatively low grade copper and
gold values with maximum Cu values to 3.7% Cu (and 1.3 g/t Au) and separately
maximum gold values to 6.6 g/t Au (and 2.5% Cu over 1 meter). Most of the holes that
were drilled by the two companies intersected mineralized intervals (=/> 10 meters) as
detailed in Tables 12.1 and 12.2. The longest mineralized interval returned is 153 meters
at an average grade of 0.5% Cu and 0.93 g/t Au.
Orion drilled all of their holes vertically; Southwestern drilled a combination of vertical,
easterly and westerly oriented holes. Tables 12.1 and 12.2 indicate the estimated true
widths of the various mineralized intervals (where these could reasonably be calculated).
It is assumed that both Orion and then later Southwestern discontinued their options on
the Carmen property because the results did not meet their corporate objectives.
The Carmen copper-gold mineral deposit is situated at the southern end of the NE
trending Inca de Oro gold-copper district, which is located between the northerly trending
Atacama Fault Zone to the west and the NNE trending Domeyko Fault Zone to the east.
The emplacement of the intrusive/mineralization/alteration is associated with (controlled
by) distentional tectonics which resulted in the generation of a series of WNW and NS
trending faults which are specifically exemplified by the NS trending Canada and the
WNM Pique faults. The emplacement of the tonalite/mineralization is closely associated
with the through-going northerly trending Canada fault and the intersection of a series of
westerly trending faults.
The Carmen mineralization as currently defined is hosted within an hornblende tonalite/

feldspar porphyry intrusive complex into andesitic volcanics of the La Negra Punta de
Cobre(?) Formation and metasomatized tuffaceous and calcareous sediments (skarns)
of the Chañarcillo and Cerrillos Formations. The intrusive/volcanic/sedimentary host
rocks variously show alteration which is characteristic of a low sulfidation system which
comprises the widespread development of adularia (Llaumett)-illite-quartz (silica)-
chlorite-calcite. Southwestern logged extensive zones of potassic alteration which they
attributed to the development of K-feldspar (as opposed to adularia) and locally
extensive development of biotite in fractures and stringers, as well as zones of strong
silicification and argillization. The copper-gold mineralization is largely contained within
at least three sets of crosscutting quartz-calcite-magnetite-(hematite)+sulfides
veinlets/veins. The sulfides comprise chalcopyrite+bornite+pyrite+pyrhottite
+molybdenite. A relatively minor percentage of the mineralization is disseminated, with a
probable maximum content being on the order of 2-3% combined chalcopyrite and
pyrite; locally clots to + 10% sulfides are logged. Disseminated magnetite (+ hematite) is
common. Oxidation extends from the surface to between 30 and 60 meters below the
surface. The principal copper oxide minerals are chrysocolla and atacamite.
51
The author has statistically evaluated the drill hole data generated by the two companies
with the intention of determining whether or not the drill hole assay data are relatively
reliable and which can be correlated (no original certificates have been seen for the
Orion assaying and only a very small percentage for the Southwestern assaying). The
statistics for the copper values indicate that the copper values correlate very well and
are most probably reliable. The statistics for the gold values correlate less well which is
characteristic for gold, but which still indicate that the gold values are probably generally
reliable.
Colorado has proposed a two phase exploration program which is designed to test the
strike extent of the Carmen mineralization to the north (for a distance of approximately
200 meters beyond the limit of the Providencia controlled ground), to the immediate west
and to the south of the currently defined mineralization. The northern and southern
target areas are generally underlain by stockworked and altered andesitic volcanics (to
the north) and mixed stockworked and altered andesitic volcanics, andesitic dikes(?) and
pyroclastics (to the south). The northern target area (potential extension of the Carmen
mineralization) shows an extensive development of NS and NNW gold-copper bearing
quartz vein swarms which transect the volcanics. The southern target area shows only
minor NS trending gold-copper quartz veining.
Southwestern considered that the Carmen mineralization, as they had defined it, was
displaced to the south of the Pique fault and that the possibility existed to double their
estimated potential to the south. This potential is in part based on the interpretation of
their magnetic survey and is in part substantiated by the existence of the hydrothermally
altered and stockworked volcanic, etc. rocks. Southwestern excavated four trenches in
this zone, for which no results are available. However, MNI sampling (including portions
of these trenches) returned scattered anomalous values ranging from 0.22% Cu and
0.15 g/t Au over 12 meters to 1.16% Cu and 0.65 g/t Au over 10 meters within 50 meters
of the Pique fault zone.
The author has field checked the Carmen Project and has reviewed selected intervals of
the Southwestern drill core. This work has confirmed that the geology, alteration,
mineralization, etc., is generally as reported and that exploration as stated has been
conducted at Carmen. The author considers that, at current metal prices, the Carmen
Project has merit and that the proposed exploration program is warranted.
20.0 RECOMMENDATIONS AND BUDGET
It is the author’s opinion that the continued exploration and development of the Carmen
Project is warranted and that the Carmen Project is of sufficient merit to warrant the
following proposed Exploration and Exploration and Development Programs, as detailed
below in the Phase I Exploration and Phase II Exploration and Development Program
Budgets which are designed to advance the definition of a copper-gold resource at the
Colorado Carmen Project. The Phase I program comprises a complete compilation of the
data, and additional trenching/ and/or re-sampling and mapping and 4,000 meters of
exploration drilling to the south, west and north of the currently defined Carmen
mineralized zone. Phase II is contingent on the success of the Phase I drilling and
exploration and is dependent on the successfully doubling the current estimated potential
mineralization. Phase II will comprise check/confirmatory drilling of the currently defined
mineralization, additional development drilling, preliminary metallurgical testing, and the
52
estimation of CIM/43-101 compliant resources. The specific drilling program (and
locations) is to be defined as an initial part of the Phase I evaluation stage, and will be
designed to primarily explore for the continuation of the Carmen mineralization to the
west and south of the currently defined potential mineral deposit. The program also
envisions evaluating the potential to extend Carmen mineral zone to the north of and
beyond the Providencia concessions (within which the northern limit of the currently
defined potential mineral deposit is contained). The items are listed with a description
where appropriate and a total price. The duration of the first phase program, which has
been budgeted to cost US $1,350,000 (Table 20.1), is estimated for the period January,
2007 to July, 2007, and will include the preparation and completion of the appropriate
reports. The Phase I work will lead into Phase II (Table 20.2) which has been budgeted to
cost US $3,432,000, and is estimated to take approximately eleven months from
inception (August, 2007) through completion (June, 2008) of a status report, a CIM/43-
101 compliant resource estimation, and an initial scoping study to determine the viability
of the established resources utilizing the indicated metallurgical recoveries. Phase II is
dependent on the outcome of the Phase I work.
TABLE 20.1 - PHASE I EXPLORATION BUDGET - January, 2007 to July, 2007
ITEM CATEGORY Total US $

Total Wages and Consulting
includes up to 32 staff and personnel 100,000
Fees
Logistics including field and Copiapo facilities plus travel 100,000
Drilling - including road and
including road and platforms construction and
platform construction and 800,000
assaying; 4,000 meters DD
assaying
Various geological/geochemical Field technicians, geology and geochemical
135,000
(including trenching) studies, data base compilation, QA/QC
Rentals - various including survey equipment and
Rentals 40,000
vehicles
Total Costs before
1,175,000
contingency
Contingency @ 15% 176,250
TOTAL PHASE I
EXPLORATION AND 1,350,000
DEVELOPMENT BUDGET
TABLE 20.2 - PHASE II EXPLORATION AND DEVELOPMENT BUDGET - August, 2007 to June
2008
Total US
ITEM CATEGORY
$
Total Wages and Consulting
includes up to 32 staff and personnel 120,000
Fees
Logistics including field and Copiapo facilities plus travel 120,000
Drilling - including road and
including road and platforms construction and
platform construction and 2,550,000
assaying; 15,000 meters DD
assaying
Geologic/resource/metallurgy Geology/drilling compilation, metallurgy, QA/QC and

250,000
studies and Technical resource estimation
Evaluations
Rentals - various including survey equipment and
Rentals 40,000
vehicles
Total Costs before
3,080,000
contingency
53
Contingency @ 15% 352,000
TOTAL PHASE II
EXPLORATION AND 3,432,000
DEVELOPMENT BUDGET
21.0 REFERENCES
Carrera, José, Jan, 2006; Proyecto Carmen de Inca de Oro, Evaluación Económica
Proyecto.
La Riva, J., Viteri, E.; Dec., 2004; Prospecto Carmen, Pórfido Oro-Cobre, Norte de
Chile, Resumen.
Llaumett, C., 2000. Inca de Oro Project, Abstract. Unpublished report.
Llaumet, Carlos, 2003; Proyecto Inca de Oro, Informe Síntesis.
Llaumett, Carlos, March, 2005; Antecedentes Geológicos del Proyecto Inca de Oro Sur;
Propiedades: Carmen-Providencia-Oky-Java, Distrito Inca de Oro, III Region, Chile.
Unpublished report.
Matthews, S.J., Cornejo, P., Riquelme, Rodrigo., 2005. Carta Inca de Oro, escala
1:100.000 (en edición). Servicio Nacional de Geología y Minería.
Palacios, C., Lahsen, A., Silvestre, H. 1991. Inca de Oro district, Chile: A fossil
epithermal system. Zbl. Geol. Paläont. H.6, p 1861-1870
Palacios, C., et al, 1992; Low-sulfur epithermal mineralization at Inca de Oro, northern
Chile: Mineralogy and fluid Inclusions; Journal of Earth Sciences, Vol. 6, No 3, pp 183-
189.
Palacios, C., et al, 1993; Mineralization in the Inca de Oro Belt, Northern Chile.
Rivera, S., Peri, M.A., 1991. Geología del pórfido de Oro-Cobre Carmen, Inca de Oro,
Región de Atacama, Chile. 6º Cong. Geol. Chileno, p 184-186.
Silvestre, H., et al, 1994, Structural Control of intrusions and hydrothermal alteration
zones by intersecting fault systems in the Cretaceous Magmatic arc of the southern
Central Andes at 27o S, III Region, Chile.
Winter, L.D.S., 1998. Geological Resource Estimate, Carmen Project, Inca de Oro area,
Chile. Minera Southwestern Chile, unpublished report.
54
To accompany the report entitled
“Carmen Copper-Gold Project, Region
III, Chile”.
22.0 CERTIFICATE OF AUTHOR
Effective Date: March 28th, 2006
I, Michael Easdon, do hereby certify that:
1. I maintain a geological consulting practice at Providencia 2330, Of. 51, Providencia, Santiago,
Chile.
2. I obtained a Bachelor of Science degree in Geology in 1960 and a Master of Science degree in
Geology in 1970 from McGill University in Montreal, Quebec, Canada.
3. I am Registered Professional Geologist (No. 243) in good standing with the State of Oregon, USA.
4. I have been continuously practicing my profession as an exploration geologist (exploration for and
development of mining properties) as a geologist since 1965. My relevant experience is as
follows: Sr. Geologist, Porphyry Copper Exploration, Duval Corporation, Nevada, 1969-1978;
Consultant, Copper and Gold-Copper Porphyry and Precious Metals Exploration – Development –
Management, Chile, 1995-present.
5. I have read the definition of “qualified person” set out in National Instrument 43-101 “Standards
of Disclosure for Mineral Projects” (“NI 43-101”) and certify that by reason of my education and
past relevant work experience, I am a “qualified person”.
6. This report is based on my personal review of information provided by Colorado Minerals Inc.
(the “Corporation”), other published and unpublished reports and maps on the subject property
and surrounding area, discussions with the Corporation’s representatives and a site visit made on
December 21, 2005.
7. I am responsible for the report in its entirety.
8. I am independent of the Corporation as set out in section 1.4 of NI 43-101. I, or any affiliated
entity of mine, has not earned the majority of my income during the preceding three years from the
Corporation, or any of its associated or affiliated companies. I have no interest, nor have had any
prior interest, in the subject property, either directly or indirectly. I, or any affiliated entity of
mine, do not own, directly or indirectly, nor expect to receive, any interest in the properties or
securities of the Corporation or any associated or affiliated companies.
9. I have read NI 43-101 and Form 43-101F1, and that this technical report has been prepared in
compliance with the foregoing Instrument and Form.
10. As of the date of this certificate, to the best of my knowledge, information and belief, the technical
report contains all of the scientific and technical information that is required to be disclosed to
make the technical report not misleading.
Dated at Santiago, Chile this 14th day of February, 2007.
(signed)“Michael Easdon”
Reg. Prof. Geologist
55

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PROJECT SUMMARY

CARMEN COPPER-GOLD PROJECT

REGION III, CHILE

Latitude 26o 50’S and Longitude 69o 57’W

UTM N7,031,000 – E405,000

1.0 EXECUTIVE SUMMARY ......................................................................................................5

2.0 INTRODUCTION AND TERMS OF REFERENCE ...............................................................8

3.0 RELIANCE ON OTHER EXPERTS...................................................................................9

4.0 PROPERTY, DESCRIPTION AND LOCATION..................................................................10

5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES,

6.0 PROJECT HISTORY ..........................................................................................................15

7.0 GEOLOGY ..........................................................................................................................27

8.0 DEPOSIT TYPE................................................................................................................35

9.0 MINERALIZATION - STYLE AND OCCURRENCE..........................................................36

12.0 SAMPLE METHOD AND APPROACH ..........................................................................44

13.0 SAMPLE PREPARATION, ANALYSES AND SECURITY.............................................45

14.0 DATA VERIFICATION ...................................................................................................46

16.0 MINERAL PROCESSING AND METALLURGICAL TESTING......................................49

17.0 MINERAL RESOURCE AND RESERVE ESTIMATIONS .............................................49

18.0 OTHER RELEVANT DATA AND INFORMATION .........................................................49

19.0 INTERPRETATION AND CONCLUSIONS....................................................................49

20.0 RECOMMENDATIONS AND BUDGET .........................................................................52

21.0 REFERENCES ..............................................................................................................54

22.0 CERTIFICATE OF QUALIFICATION.............................................................................55

Figure 4.1 – Project Location and Access Map..........................................................................10

Table 4.1 – Carmen Property Coordinates .................................................................................12

The Carmen Copper-Gold Project is located approximately 1,100 kilometers north of

Under Chilean environmental regulations, as they apply to mining exploration activities,

Carmen Potential Mineral Deposit Estimates

0.7 g/t Au 30,000,000 0.3 0.5

0.7 g/t Au 41,000,000 0.4 0.6

0.4% Cu 13,000,000 0.4 0.6

The emplacement of the tonalite/mineralization is closely associated with the through-

This report is considered to be valid effective through to March 28th, 2006.

2.0 INTRODUCTION AND TERMS OF REFERENCE

2.4 SOURCES OF INFORMATION: This report is based on various geological reports,

3.0 RELIANCE ON OTHER EXPERTS

4.0 PROPERTY DESCRIPTION AND LOCATION

4.1 LOCATION: The Carmen Copper-Gold Project is located approximately 1,100

Figure 4.1 Carmen Project - Location and Access Map

Figure 4.2 Carmen Project Map showing Topography, Concessions

Figure 4.3 Carmen Project Concessions

As prepared by SBX Consultores

UTM Coordinates UTM Coordinates

TABLE 4.2 - Carmen Property Concessions Data

CONCESSION SIZE NE CORNER DATE OF

1 Carmen 1/20& 23-98 960 404,219 7,031,719 1983

4.3 OPTION/PURCHASE SUMMARY: Colorado, through its Chilean subsidiary La

1. Colorado entered into an Option to Purchase Agreement with Gestion de Activos

• $250,000 - on signing; this amount has been paid;

• $20,000 - on signing; this amount has been paid;

5.1 ACCESS: Access from Santiago is by the paved Pan-American Highway

6.0 PROJECT HISTORY

Orion/Southwestern/MNI mapped the property (2,000m x 800m) at a scale of 1:1,000.

Table 6.1 – Carmen Project - MNI Chip Channel and

From To From To % g/t m

7,031,400 7,031,300 405,200 405,500 0.06 0.94 5

7,031,300 7,031,200 405,300 405,700 0.02 0.97 8

7,031,200 7,031,100 405,300 405,700 1.09 0.25 10

CD-1 405,425 7,031,050 2,133 0 -90 199.15

Total Drilled: 23 holes 2,988.49

Table 6.3 - Carmen Project - Southwestern Diamond Drill Hole Data

Drill Hole UTM Coordinates Elevation Azimuth Inclination Length