Ni 43-101 2009.10.22

Technical Report and Proposed Exploration Program
for the
Leyte Copper Project Leyte Province, Philippines
prepared for
Philippine Metals Corporation

Calgary AB and
New Meridian Mining Corp.

Calgary AB
by Daniel A. Beauchamp, P.Geol., M.B.A. Consulting Geologist Bill Dynes, P.Geol. Sierra Geological Corp.
Longitude: Latitude: Region: Province: Date:
1245618 E 1114'42 N Eastern Visayas Leyte 22 October 2009
Technical Report: Leyte Copper Project Philippines
Table of Contents
1. 2. 3. 4. Executive Summary ................................................................................ 1 Introduction ............................................................................................. 4 Reliance on Other Experts ...................................................................... 5 Property Description and Location .......................................................... 5 Mineral Exploration in the Philippines................................................ 5 Mining Rights held by Philippine Metals Corporation ........................ 9 Leyte Copper Project....................................................................... 12 5. 6. 7. Access, Climate, Resources, Infrastructure and Physiography ...................................................... 17 History .................................................................................................. 23 Geological Setting ................................................................................. 27 Regional Geology ............................................................................ 27 Local Geology ................................................................................. 30 8. 9. Deposit Types ....................................................................................... 38 Mineralization ........................................................................................ 40 Geological Mapping......................................................................... 48 Rock Sampling ................................................................................ 51 11. Drilling ................................................................................................... 62 12. Sampling Method and Approach ........................................................... 63 13. Sample Preparation, Analysis and Security .......................................... 63 14. Data Verification .................................................................................... 64 15. Adjacent Properties ............................................................................... 66 16. Mineral Processing and Metallurgical Testing ....................................... 66 17. Mineral Resources and Mineral Reserve Estimates .............................. 67 18. Other Relevant Data and Information .................................................... 67 19. Interpretation and Conclusions .............................................................. 68 20. Recommendations ................................................................................ 69 21. References ............................................................................................ 73 22. Date and Signature Page ...................................................................... 77
10. Exploration ............................................................................................ 48
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List of Tables
Table 1. Table 2. Table 3. Table 4. Table 5. Table 6. Mineral Rights in the Philippines................................................... 6 Property Holdings ....................................................................... 12 Table of Formations................................................................... 31 Summary of Characteristics of Cyprus-type Mineralization ........ 50 Sample Distribution .................................................................... 63 Proposed Budget Leyte Copper Project .................................. 72
List of Figures
Figure 1. Project Location Map .................................................................. 11 Figure 2. Property Location Map ............................................................... 13 Figure 3. Zones of Mineralization .............................................................. 14 Figure 4. Road and Trail Access ............................................................... 19 Figure 5. Topography ................................................................................ 22 Figure 6. Geology - Philippines.................................................................. 28 Figure 7. Cross-Section of an Ophiolite Suite ............................................ 29 Figure 8. Local Geology............................................................................. 32 Figure 9. Schematic Section of the Tacloban Ophiolite Suite .................. 33 Figure 10. Cross Section of Cyprus-Type Mineralization ............................. 38 Figure 11. Palo - Curajo Area, Barangay San Jose, Mineralized Areas ...... 53 Figure 12. Plan Map - Palo Area ................................................................. 54 Figure 13. Cross-section - Palo Area A ....................................................... 55 Figure 14. Buen Suerte - Kambalantong Area ............................................. 57 Figure 15. Salvacion Area ........................................................................... 61 Figure 16. Proposed Geophysical Grid ........................................................ 70
Appendix
Appendix Verification Analyses .................................................................. 81
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1.
Executive Summary
At the request of Philippine Metals Corporation and New Meridian Mining Corp. Daniel A. Beauchamp and Bill Dynes were commissioned to write an independent Technical Report to the standards of National Instrument 43-101 on the companys Leyte Copper Project in the Philippines. The report is prepared for an anticipated reverse takeover of New Meridian Mining Corp by Philippine Metals Corporation (New Meridian Mining Corp, 2009a and 2009b). D.A. Beauchamp visited the property on May 25-26, 2009 and Bill Dynes visited the property on December 1-2, 2007. The Leyte Copper Project is located about 600 km southeast of Manila and is composed of three blocks: the Taurus Block covers an area of 3606 ha on which the company was granted an Exploration Permit, and the Suhi 0059 and 0096 Blocks, that cover 6289 ha, for which applications for Exploration Permits have been submitted. Philippine Metals Corporation acquired the Leyte Copper Project, along with the Dilong Project and the Malitao Project, respectively located 280 and 380 km north of Manila in the Luzon Region, from companies based in the Philippines. In the Philippines, all mineral rights are owned by the state and mineral exploration cannot proceed before an Exploration Permit has been issued. After a feasibility study the company can apply for one of several agreements with the government whereby the government can take a share in the property through an excise tax, participation in a joint venture or a co-production agreement. The Leyte Copper Project is located five kilometres west of Tacloban City on Leyte Island which is accessible by daily flights from Manila, and also by road and ferry. A network of roads leads from Tacloban City where several trails provide good access to most parts of the property. Several large industrial plants are present on Leyte Island within a two-hour driving distance from Tacloban City including a geothermal plant and one of Asias largest copper smelters. The average literacy rate in the country is 92.6%. The topography on the property is rugged and the elevations rise from about 15m on the east side to 600m asl in the northern part of the project area. The area is covered by growth forest and the depth of weathering is estimated at 10-20m.
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Copper sulphide mineralization has been known in the area since the 1930s and ore was mined from several areas. Many pits, trenches and adits, extending for 5-100m, were excavated on the property in the early 1970s. Government geologists performed geophysical surveys over small areas using earlier instruments and a soil survey was completed in one area. Resources have been calculated for a few areas but these are not to the standards of NI 43-101. At least nine areas of sulphide mineralization have been identified over a strike length of about 17 km along several structures. From 1968 to 1972 several geologists from the Bureau of Mines and Geology mapped parts of the area and characterized the area as an ophiolite suite that contains Cyprus-type copper mineralization. The entire project area is underlain by an ophiolite suite consisting of ultramafic rocks that have been intruded by gabbro and sheeted diabase dykes, over which pillowed and massive basalt flows were later extruded. Marine pelagic sedimentary rocks, now metamorphosed to phyllite, occur along with the basalt. The sulphide mineralization consists of chalcopyrite with associated bornite, covellite and chalcocite, all in association with pyrite in steeply-dipping fractures, breccia and fault zones that strike north-northwest. The mineralization is often massive and many channel samples report grades of 2-10% Cu and up to 1.7% Zn over 1-10m. A correlation between copper and zinc has not been established. Disseminated sulphide mineralization often occurs as envelopes surrounding the massive sulphides and can extend for 5-10m in the country rock basalt and phyllite. Analyses of 0.2-0.9% Cu over 2-20m have been reported from this style of occurrence. Massive sulphides are also present in subsidiary fault zones that strike to the east and that appear to have been active at a later time. Although the copper sulphide minerals are the same, the presence of hematite and marcasite indicate that the massive sulphide mineralization from these structures may have remobilized from the massive sulphides in structures that strike northwest.
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In 2009 Philippine Metals Canada Philippines Inc., a wholly-owned subsidiary of Philippine Metals Corporation, undertook a six week field program on the Taurus Block of the Leyte Copper Project. The program consisted of geological mapping and channel sampling of adits, pits, trenches and stockpiles of ore in five known zones of mineralization, over a strike length of 12 km, to better characterize and understand the type of mineralization on the property. Massive sulphide mineralization is present as lenses up to five metres wide that can extend for several tens of metres in length. The mineralization appears to pinch and swell along the major faults that strike northwest and east. The trace of the mineralization has been followed for at least six kilometres along strike. The widespread occurrences of massive sulphides and the limited extent of exploration of the property using modern techniques of mineral exploration make the Leyte Copper Project a property of merit. As part of Phase 1, a ground geophysical survey over an area 500m1500m is recommended over the Kambalantong-Malayahay area to better assess the extent and size of the massive sulphide occurrences that have been identified in this corridor. The electromagnetic (EM) survey will identify the depth and extent massive sulphide zones while the magnetometer survey will outline structures and possible zones of alteration. A first round of diamond drilling to test the existing zones of mineralization that will have been better delineated is proposed for 2000m in ten drill holes. The total cost of the geophysical survey and the drilling is budgeted at CA$427,000. Upon approval of the Exploration Permits on the Suhi Projects, a helicopterborne EM and magnetometer survey should be carried out over the entire Leyte Project area to explore the property at a line spacing of 100m. The budgeted cost of this survey is estimated at CA$613,000. The total cost of Phase 1 is estimated at CA$1,040,000. Upon the return of encouraging results from the first phase of drilling and of the airborne geophysical survey, a Phase 2 program is recommended, consisting of 4000m of drilling in 20 holes to further define the zones of mineralization in the Kambalantong-Malayahay corridor or in other parts of the property. The cost of Phase 2 drilling is budgeted at CA$760,000. The total cost of Phase 1 and Phase 2 are budgeted at CA$1,800,000.
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2.
Introduction
Mr. Feisal Somji, Chief Executive Officer, President and Director of Philippine Metals Corporation, of Calgary Alberta, contracted Daniel Beauchamp, P.Geol. and Bill Dynes, P.Geol. to write this Technical Report for Philippine Metals Corporation and for New Meridian Mining Corp. This Technical Report is prepared in compliance with National Instrument 43-101 (NI 43-101), regulations published by the Canadian Securities Administrators, for an anticipated reverse takeover by Philippine Metals Corporation of New Meridian Mining Corp. of Calgary, Alberta. The data in this report was compiled from a detailed review of historical assessment and geological reports, and maps by companies and government agencies, and from the recent exploration program carried out on the property by Philippine Metals Canada Philippines Inc., a wholly-owned subsidiary of Philippine Metals Corporation. The project was also discussed with other geologists. This report includes a proposed exploration program and budget to evaluate the mineral potential of the property. As Qualified Person, D.A. Beauchamp has worked in mineral exploration for more than 25 years. The author has worked as a geologist throughout Canada and has supervised and managed projects in the field in many geological environments including volcanogenic massive sulphides from the Archean to the Phanerozoic carrying out geological mapping, geochemical and geophysical surveys, diamond drilling and core logging. D. Beauchamp carried out a property site visit from May 25 to May 28 2009. This site inspection included the following: May 25 May 26 May 27 May 28 Palanog area, Leyte Copper Project, Leyte Island Palo area, Leyte Copper Project, Leyte Island Malitao Project, Luzon Region Visit to McPhar Geoservices (Phil.), Inc. laboratory in Manila.
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As Qualified Person to the Leyte Copper Project in contract with Philippine Metals Corporation, Bill Dynes, P Geol carried out a property site visit to various areas of the Leyte Copper Project on December 1st and 2nd, 2007 and has overseen, in the capacity of a Qualified Person, the subsequent work program completed on the Leyte Copper Project in 2009, as described in Section 10 herein. Bill Dynes is a director of New Meridian Mining Corp. 3. Reliance on Other Experts
This Technical Report contains information from government documents, company reports, public documents and other technical reports. Most of these reports are historic in nature and may not have been written by Qualified Persons as currently defined by NI 43-101. The pertinent information has been reviewed by the authors and although there do not appear to be significant discrepancies in the information, the authors have not verified the assays or other technical data from these reports by carrying out independent sampling. Although the authors have visited the Leyte Copper Project site, not all sites referred to in this report have been examined in the field. The authors relied on Tom Vaillancourt, VP Operations for Philippine Metals Corp. and on Jose S. Garcia, VP Exploration for Philippine Metals Corp. for additional details and information on the legislation and operating environment in the Philippines. 4. Property Description and Location Mineral Exploration in the Philippines The 1987 Philippine Constitution states that all natural resources in the Philippines are owned by the state, and that the exploration, development and use of these natural resources are under the control and supervision of the state. Mineral rights in the Philippines are governed by The Philippine Mining Act of 1995, and of its partial revisions in 1996 and 1999, which describes the rules and
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regulations whereby individuals and corporations can acquire mineral rights and carry out mineral exploration in the country. In December 2004, in response to a challenge, the Supreme Court of the Philippines confirmed the legality of the 1995 Philippine Mining Act, including the Financial Technical Assistance Agreement (FTAA). The Mining Act allows for several types of mining rights in the country (Table1). The first is an Exploration Permit (EP) valid for a period of 2 years and is renewable in two-year periods to a maximum of 8 years. The holder can then apply for either one of the other mining rights, namely a Financial Technical Assistance Agreement (FTAA) or a Mineral Production-Sharing Agreement (MPSA).
Table 1 Mineral rights in the Philippines

Stage Title
Exploration Mining
ExplorationPermit FinancialTechnicalAssistanceAgreement MineralProductionSharingAgreement(MPSA) JointVentureAgreement(JVA) CoProductionnAgreement(CPA)
Both the Financial Technical Assistance Agreement (FTAA) and the Mineral Production-Sharing Agreement (MPSA) are valid for a period of 25 years and can be renewed for another 25 years. Exploration Permits and the subsequent Financial Technical Assistance Agreement or Mineral Production-Sharing Agreement are granted on condition that the mining activities are managed in a technically, financially, socially, culturally and environmentally responsible manner to enhance the national growth and welfare of the Philippines.
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Exploration Permits must be acquired by a Qualified Person or Entity prior to carrying out mineral exploration. Qualified Persons are Filipino citizens and Qualified Entities are domestic or foreign-owned corporations. The maximum area that corporations as Qualified Entities can apply for or hold at any time onshore is 16,200 ha in a province and a maximum of 32,400 ha in the country. The latest posted list shows that there were 43 active of Exploration Permits covering a total of 117,942 ha in the country in of June 2008. An Exploration Permit Application must include location maps, a two-year exploration work program with a corresponding two-year environmental component, proofs of technical competence and financial capability, proof of the articles of incorporation and an affidavit of undertaking from the corporation. The Qualified Person or Entity is then subject to providing certification from the National Commission of Indigenous Peoples attesting that the permit does not infringe on ancestral land claims and that indigenous communities have given their consent to the permit. As part of the terms of the Exploration Permit the holder must provide a surety bond equivalent to the expenditure requirement of the Exploration and Environmental Work Program, and must submit reports within 30 days of the end of each semester outlining the results of the exploration program including an accounting of the costs incurred and proof that the proposed Exploration and Environmental Work Program has been implemented. If the original permit area is greater than 5000 ha, a minimum of 20% of the permit area must be relinquished within the first two years, and then at least 10% of the remaining permit area every year of the remaining exploration period. Detailed geological reports, results of analyses and expenditures must be submitted on the relinquished area. There is no requirement for relinquishing any area if the original permit area is less than 5000 ha. Upon relinquishing an Exploration Permit or at the time of conversion to a Mineral Agreement, or a Financial or Technical Assistance Agreement, the holder must
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submit a detailed geological report including the results of all analyses and surveys, and of expenditures. For drilling programs, a quarter of the core samples must be deposited in the Regional Office Core Library. If the project is worthwhile, a feasibility study must be carried out in the term of the Exploration Permit. Upon the discovery of a mineral deposit that is technically and economically mineable the holder of an Exploration Permit will have the exclusive right to enter into a Mineral Production Sharing Agreement (MPSA), or in a Financial Technical Assistance Agreement that can take the form of a Joint Venture Agreement (JVA) or a Co-Production Agreement (CPA) with the Philippine government to develop and mine the deposit. Certain conditions and terms apply to these agreements. These agreements are valid for a period of 25 years and may be renewed for another 25-year period. Under a Mineral Production Sharing Agreement (MPSA), the government grants the company an exclusive right to a mining operation over the project area. The company provides the financing, technology, management and personnel necessary for the implementation of the MPSA and the government of the Philippines takes a share of the gross output of the mining operation as a 1% excise tax, rising to 2% by the sixth year on all metallic minerals, except for gold and for coal where it is 2% from the first year of operation. This agreement can also take the form of a Co-Production Agreement where the government provides inputs to the mining operation other than mineral resources or a Joint Venture Agreement where the government and the company participate in a joint venture, each of them owning equity in the project, to develop and mine the deposit.
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Mining Rights held by Philippine Metals Corporation Philippine Metals Corporation has acquired the rights to three project areas in the Philippines (see Figure 1): 1. The Leyte Copper Project located in Leyte Province in the East Visayas region; 2. The Malitao Project, in the municipality of Calanasan, Province of Apayao, Luzon Region; 3. The Dilong Project in the municipality of Tubo, Province of Abra, Luzon Region. The Leyte Copper Project is composed of three blocks, the Suhi 059 and 096 blocks and the Taurus block. The rights to the Suhi 059 and 096 blocks were acquired from Canaan Richfield Inc., of Metro Manila, Philippines. The rights to the Taurus block were acquired from Metex Mineral Resources Corporation and from Citigroup Philippines Corporation, both based in Metro Manila, Philippines. The rights to the Malitao Project were acquired from Al Magan Mining Exploration Corporation, of Baguio City, Philippines, and from Metex Mineral Resources Corporation of Metro Manila, Philippines. The Malitao Project covers an area of 972 ha. The property is accessible by a series of trails in a sparsely populated area of northern Luzon. The Malitao Project is underlain by basinal sedimentary rocks of shallow marine origin and by volcaniclastic rocks of andesitic composition. A limestone cap unconformably overlies all rocks. Extensive near-vertical dykes of diorite and andesite composition are accompanied by sulphide alteration and replacement over widths of tens of metres at the contact with the sedimentary rocks (Lueck . 2007a). Although the area was explored in the 1960s and several property visits have been carried out since then, no exploration work has been carried out on the property in about 35 years. An historical chip sample reported 3.5% Cu and
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0.556 g/t Au in a 93.29m long, and recent chip sampling reported 14.8-34% Cu, 1.4-26.4% Zn, 1.18-1.57 g/t Au and 303-534 g/t Ag over about 8m (Lueck 2007a). Other historical work shows a sinuous anomaly of unknown intensity for copper in soils has been outlined over an area of about 400800m and seven holes were drilled but there is no report of assays. Geological models of mantotype and porphyry mineralization have been proposed for the property. The rights to the Dilong Project were acquired from Metex Mineral Resources Corporation Metro Manila, Philippines and the property has a surface area of 324 ha. The property is underlain by Late Cretaceous to Paleogene volcanic and sedimentary rocks that have been intruded by dykes, stocks and plutons of diorite and granodiorite, followed by later dykes of basalt, andesite and dacite composition. Extensive faulting and fracturing have four general orientations. Porphyry copper mineralization is reported in a quartz stockwork within diorite and in nearby Cretaceous sedimentary rocks. The Dilong Project was explored from 1970 to 1974 by geological surveys including alteration mapping, by soil, stream and biogeochemical surveys, by an induced polarization survey and 6160m of drilling in 29 holes. A resource of 45.35 million tonnes grading 0.5% Cu, 0.5 g/t Au and 0.006% Mo was estimated (Motton, 2008). This resource was not calculated according to National Instrument 43-101 regulations and should not be relied upon. The object of this report is the Leyte Copper Project.
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115E
120E
125E
130E 130 E
105E
China
25N
110E
135E
Taiwan
20N
Laos
Malitao Project Malitao Project Dilong Project Dilong Project

Thailand Viet Nam Cambodia
15N
Philippines Philippines
Leyte Copper Project r r Leyte Copper Project
10N
5N
Malaysia
Brunei
0N
Indonesia
Philippine Met tals Corporation 400 0 400 Kilometres 800 1200 Property Lo ocation Map
Philip ppines
Revised: 2009.09.21 Date: 2009.09.21 By: D.A. Beauchamp, P.Geol. Figure: 1
Leyte Copper Project The Leyte Copper Property is composed of three contiguous mineral blocks located in the northern part of Leyte Island in the East Visayas region (Figure 2). The three blocks are covered by parts of Tacloban City, and the municipalities of Babatngon, San Miguel, Alang-Alang, Santa Fe and Palo. Municipalities are further subdivided into barangays, or local villages. A barangay is the current term for what was known as a barrio. The properties include the Taurus block, Suhi 0059 block and the Suhi 0096 block. The property boundaries are determined by latitude and longitude and the total area of the properties is shown in Table 2.
Table 2 Property Holdings
Property Parcel Area Total Area
Taurus0049 Suhi0059 Suhi0096 North Central South
3606.50 ha 3606.50 ha 5031.44 ha 5031.44 ha 503.13 ha 419.35 ha 335.52 ha 1258.00 ha 9895.94 ha
TotalArea
The Taurus Property is approximately 12 km long and 3 km wide and covers an area of 3606.5 ha. The property hosts several zones of mineralization including Palo, Palanog-Kambalantong, Salvacion A and B, Malayahay and San Roque Prospect (Figure 3).
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BABATNGON
Samar Isla and Leyte Island
12450'E 12500'E
Taguite BABATNGON Bagahupi
TACLOBAN
1120'N
SAN MIGUEL
Suhi 0059 Suhi 0059 Project Project Suhi 0096 Suhi 0096 Project Project
Bagacay
ALANGALANG
Taurus Taurus 0049 0049 Project Project
TACLOBAN C CITY
Legend
Road Municipality/ Barangay
SANTA FE
1110'N
PALO
PALO
2 Kilometres
Philippine Met tals Corporation UAN TANAU Property Lo ocation Map

Leyte Copper Pro oject, Philippines
Babatngon
8. Cabalawan-Barrio Suhi 8. Cabalawan-Barrio Suhi
San Miguel
5. San Roque Prospect 5. San Roque Prospect 7. Suhi Bacagay 7. Suhi Bacagay
4. Malayahay 4. Malayahay 3. Palanog - Kambalantong 3. Palanog - Kambalantong

Alangalang
TACLOBAN CITY
2. Salvacion 2. Salvacion 6. Caibaan 6. Caibaan
Tacloban
Legend
Municipality/ Barangay
Santa Fe
Mineral Occurrence
1. Palo - Curajo 1. Palo - Curajo
2 Kilometres
6
Palo
Philippine Meta Corporation als Zones of Mi ineralization

Leyte Copper Pr roject, Philippines
The property was the object of a prior agreement between Citigroup Philippines Corporation and Metex Minerals Resources Corporation (Metex) dated 15 March 2007, which Philippine Metals Corporation took over on 31 January 2008. Exploration Permit No. 00049-VIII on the Taurus property was approved on 17 April 2009. The terms of the agreement with Philippine Metals Corporation are as follows: Payable to Metex for the Taurus Block: 2,500,000 shares of Philippine Metals Corporation to be issued to Metex upon the approval of the Exploration Permit on Taurus; US$100,000 payable upon completion of the Initial Public Offering (IPO) by Philippine Metals Corporation on the Taurus Project;
Philippine Metals Corporation must also take over the responsibility for the following payments to Citigroup for the Taurus Block: US$75,000 upon signing the deed of assignment on January 31, 2008; US$100,000 payable within 30 days of signing the deed of assignment; US$200,000 at each of the first three anniversary dates of the signing of the deed of assignment, less the cumulative US$5,000 in monthly payments made in that year; US$1,500,000 upon commencement of mining activities; NSR royalty 1.5% payable on production.
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The two Suhi blocks extend over a length of about 20 km to the northwest, cover 6289.44 ha, and lie to the immediate east and north of the Taurus block. The current known zones of mineralization include the Caibaan, Suhi Bagacay, San and Cabalawan-Barrio Suhi areas. Exploration Permit Applications EXPA 00059VIII and EXPA 000096-VIII have been submitted for these properties but are not yet approved. The properties were acquired from Canaan Richfield Inc. on November 5, 2008 under the following terms: Total initial cash payments of US$75,000; US$37,500 payable and 46,875 shares of Philippine Metals Corporation to be issued to Canaan Richfield Inc. within 30 days from the from signing the deed of assignment on November 5, 2008; the current monthly payments of US$2500 will be deducted from the anniversary payment US$62,500 payable and 78,125 shares of Philippine Metals Corporation to be issued to Canaan Richfield Inc. at the one-year anniversary of the deed of assignment on November 5, 2009; the current monthly payments of US$2500 will be deducted from the anniversary payment; $100,000 payable and 125,000 shares of Philippine Metals Corporation to be issued on November 5, 2010 and again on November 5, 2011; monthly payments of US$2500 will be deducted from the anniversary payment; $1,500,000 to be paid upon the commencement of mining activities; 1.50% Net Smelter Royalty (NSR).
Information on the payments required was provided by Philippine Metals Corp. There are currently no known environmental liability issues that are pending or foreseen for any of the three properties on the Leyte Copper Project.
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5.
Access, Climate, Resources, Infrastructure and Physiography
The Republic of the Philippines (Philippines) is a country located in the western Pacific Ocean. It is now a self-governing commonwealth that became independent in 1946. The population is estimated at 98,000,000 and the country is composed of 7107 islands. At 300,000 km2 the total land area of the country is slightly less than half the size of Manitoba, but dispersed over a much larger area. The median age of the population is 22.5 years and the literacy rate was estimated at 92.6% in 2000. Although there are many dialects spoken in the country, the official languages are English and Filipino (Tagalog). Access The project area is located near Tacloban City, about 600 km southeast of Manila, the capital. Tacloban City can be reached from Manila by the daily onehour flights made by Philippine Airlines, Air Philippines or Cebu Pacific Air. The airport can accommodate aircraft up to the size of a Boeing 737 and is currently undergoing an expansion. Road access from Manila is along the Pan Philippine Highway, also known as Asian Highway 26, from Manila toward the southeast; a ferry crosses 15 kilometres from Matnog, Province of Sorsogon on the Southern tip of the Luzon Region to Allen, on Samar Island and from there the San Juanico Bridge crosses over to Leyte Island. Travel time from Manila to Tacloban City by road is about 22 hours. A national seaport, Tacloban City can also be accessed by ship from Manila in 36 hours, three days per week. In the region the local road system is relatively good with pavement and concrete-cement for the covered roads. Access to the eastern and southern boundaries of the property is by a partly concrete-covered road 6 km west of Tacloban City, from which several trails can be used to reach many areas on the property.
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A well-developed network of paths and trails is present in the southern and central parts of the property (Figure 4). Some of these were used as roads in the past and could be rehabilitated to bring machinery such as excavators or diamond drilling equipment to areas of mineralization. Climate The region is classified as Type 2 climate which means that precipitation is fairly evenly distributed throughout the year, although from November to January, typhoons and cyclones are frequent. Average yearly precipitation is 247 cm. The temperature ranges from 25C to 28.8C year round and the relative humidity is usually 57% to 75% Local Resources Tacloban City, population 217,000, is the capital of Leyte Island and is located 3.5 km due east of the property boundary. Also the city of Ormoc, located a twohour drive to the southwest has a population of 180,000. The total population of Leyte Island is about 1.5 million, averaging about 264 persons per square kilometre. The Tacloban City government ceased to be under the supervision of the provincial government after it became a Highly Urbanized City in 2008 and is now under the direct supervision of the national government. Several major industrial developments, within 2 hours by road from Tacloban City, make the Leyte one of the more resource-rich provinces in the Philippines. The Greater Tongonan Geothermal Field, located about 50 km southwest of Tacloban City is operated by the Philippine National Oil Corporations Energy Development Corporation division and generates about 700 MW of electricity. This power represents 38% of the entire Philippine geothermal power capacity of 1,850 MW and is the source of the electricity for the province of Leyte.
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Leyte Island
Babatngon
Bridge to Bridge to Samar Island Samar Island
Outline of Taurus and Suhi blocks Outline of Taurus and Suhi blocks

Samar S Island I
San Miguel

Alangalang
Tacloban Tacloban City City

major major port city port city
Legend
Road Trail Municipality/ Barangay Mineral Occurrence
Santa Fe
Tacloban
2 Kilometres
6
Palo
Philippine Meta Corporation als Road and Trail Access

Located in the Leyte Industrial Development Estate (LIDE), near Isabella about 70 km southwest of Tacloban City, is the largest phosphatic fertilizer manufacturing complex plant in Asia. Operated by the Philippine Phosphate Fertilizer Corporation, known as PHILPHOS, the plant started as a 50-50 joint venture between the Philippines and the Republic of Nauru but was later privatized in 2000. On a yearly basis it produces 1,000,000 tonnes of granulated phosphate, 1500 tonnes of sulphuric acid, 12,000 tonnes of phosphoric acid and 172,000 tonnes of ammonium sulphate. LIDE is also host to one of the largest copper smelters in the world. The PASAR (Philippine Associated Smelting and Refining) smelter was originally built by the government through the National Development Company (42%) and a consortium of private companies, but in June 1999, a group of Philippine investors and the Swiss metals trader Glencore International AG, purchased 90% of the Philippine Government's shareholding, transforming the company into a privately-owned corporation. The smelter and refinery complex employs 1030 people. The refinerys capacity of Grade A electrolytic copper cathodes was expanded to 215,000 tonnes per year in 2007. The plant produces electrolytic copper cathode, refined copper anode, copper wire, dor metal, granulated slag, iron concentrate, selenium powder and sulphuric acid. In the Tacloban area the local labour produces raw material from the forest to be used in industrial products such as rattan, bamboo, buri palm, wild vines and ferns. In the northeastern part of the island the economy of Leyte Island is based mostly on agriculture. Rice is farmed in the lower flat areas near Tacloban, and coconut for coconut oil is the most important crop in the hills and mountainous areas, but corn, sugar cane and pineapples are also produced. The provincial government is making efforts to increase the processing of coconut and other products in the area to raise employment.
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Exports from the region include copra (the dried kernel of the coconut), rice, maize, sugar cane and abac, a type of banana native to the Philippines from which fibre is extracted to make rope, but is now also used in specialty papers. Fishing for shrimp and prawn is also an important source for the livelihood of residents. Local industrial occupations include small scale furniture making, ceramic moulding, food preservation, various metal crafts and handicrafts such as toy making, gift making and souvenirs. Infrastructure Tacloban City is the site of several large state-run educational institutions such as the University of the Philippines Tacloban, Leyte Normal University, and the Leyte Institute of Technology. Other post-secondary educational institutions in the region are at Palo, population 42,000, the site of UP Manila School of Health Sciences, St. Paul's School of Business and Law, and the AMA St. Augustine School of Nursing. Road access throughout the region is excellent and electricity is available throughout the region. Physiography The island of Leyte shows generally flat to gently rolling hills with mountains toward the centre that extend to the north northwest of the island. The property is located in the northeastern part of the island where the Babatngon-Guindapunan Range, about 32 km long and 8-10 km wide, extends to the north-northwest. On the property the elevations are about 15m asl on the eastern edge rising to a maximum of 600m asl at Bagahupi Peak in the northern part of the project area (Figure 5).
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Leyte Island Samar Island

Babatngon
San Miguel

Alangalang
TACLOBAN CITY
Legend
Road Municipality/ Barangay Mineral Occurrence Minor contours at 20m intervals Major contours at 100m intervals
Santa Fe
Tacloban
2 Kilometres
6
Palo
Philippine Meta Corporation als Topog graphy

Topography is relatively steep and several rivers draining east and west have deep v-shaped cross-sections indicating that they are relatively recent. The Mainit, Palo and Sapanton rivers flow mainly to the west and then to the northwest toward Santa Cruz. On the east the Barugwan, Diit and Tigbao rivers flow a short distance to the San Juanico Straight that separates Leyte Island from Samar Island to the east. The Palo River is somewhat wider and drains off the property to the south. Parts of the property are covered by thick vegetation consisting of palm trees, and underbrush. 6. History
Mineralization was known in the area prior to the 1940s. In 1936 several test pits and adits were excavated in the search for gold. In 1961, near Caibaan, on the Suhi 0059 Block, the area was prospected and staked by prospectors. The claims were transferred to Palo Consolidated Mines Inc. on June 26, 1963. The company carried out 17 X-Ray drill holes at 10m spacing for a total of 487.7m on the property and made three shipments of ore, of approximately 1000 tons each, from three test pits. The rocks are intensely faulted at 340NW strike 80NE dip. One tunnel was estimated to contain 51,000 tonnes of ore grading 5.09% Cu. This resource was not calculated according to National Instrument 43-101 regulations and should not be relied upon. In late 1963, Palos claims were transferred to Marcelino Collado who carried out rock sampling of the Caibaan claims and also of the Palanog, San Jose and Bagacay areas. He reported values of 0.13-11.2% copper from these samples. He also reported 1.0 g/t Au and 78.5 g/t Ag from the sample that contained 11.2% Cu (Fortanos and Fajando, 1964). In 1964, Mr. Collado requested an evaluation of the copper deposit at Caibaan by Domingo Fajando, of the Mines Bureau in Manila, who recommended
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additional work including detailed sampling of wall rock, and additional analyses for silver. In 1968 Francisco Garcia staked 168 claims in the Palanog area of the Taurus Block and later sold them to Minero Chemical Corporation, which later turned its rights over to Taurus Minerals and Oils Corporation in early 1970. Taurus Minerals carried out geophysical and geological surveys and drilled several holes. Test pits and trenches outlined significant sulphide mineralization. In 1968, E. Gamus and J. Lauron, geologists with the Bureau of Mines in Manila, carried out field investigations of the eight claims owned by Leyte Base Metals, at Cabalawan, in the Barrio Suhi area. They reported copper mineralization in pods and lenses or disseminated in veins, mainly as replacement along disturbed zones in the green schist underlying the property. Mineralized sulphide bodies were exposed by trenches and several lenses measuring 0.1m 1m were encountered. The rocks are faulted by two structural systems striking northeast and northwest. In one section, the lenticular veins, sheets and pods of pyrite and chalcopyrite contain an average of 0.45% Cu. One outcrop 0.35m 6m averages 4.48% Cu, another schist area grades 1.07% Cu and in a third area a trench grades 5.95% Cu (Gamus and Lauron, 1968). In 1970 Taurus Minerals and Oils Corp. applied for a listing on the Philippine Stock Exchange with its main asset being a resource of 4.5 million tonnes grading 2.2% Cu at the Kambalantong area of the property. This resource has not been mined and is still in place. This resource was not calculated according to National Instrument 43-101 regulations and should not be relied upon. Armando Paderes, Senior Geologist with the Bureau of Mines and Geology in Manila, carried out a rapid surface geological mapping of the region in 1971 and early 1972. He reported that at elevations above 200m, an ophiolite sequence is present as dykes, sills and small bodies of ophiolitic intrusive rocks. He reported that the property is underlain by a thick sequence of dynamothermally mafic volcanic flows interbedded with metamorphosed sedimentary
rocks consisting of shale, sandstone and conglomerate. Porphyritic, variolitic and veined spilite with meta-andesite, chert, greywacke, slate and phyllite are extensively permeated by crisscrossing veinlets of quartz, chlorite and less commonly epidote. The ophiolite consists of gabbro porphyry and diabase, with cataclastic texture, cut in part by veinlets of epidote and carbonate. Mineralization at Barrio Suhi occurs mostly in fractures striking 055 with irregularly-shaped high grade sulphide bodies including a lens-shaped pod 4m 1m that contains massive copper-bearing specular hematite enclosed in a strongly pyritized host rock. The grade of the rock is 0.40-1.84% Cu (Paderes, 1972) In early 1974, Rafael Zerda, Senior Geologist at the Bureau of Mines and Geology in Manila carried out an appraisal of the Leyte Base Metal claims of the Barrio Suhi area at the request of Argonaut Mineral Exploration Inc in connection with its applications for a listing on the Philippine stock Exchange and reported the presence of high grade copper mineralization in lenses and pods at the intersections of fractures in the gabbro. He reported that the property is underlain by an undifferentiated sequence of metamorphosed sedimentary and volcanic rocks and minor gabbro that have been metamorphosed to greenschist facies. Massive pyrite and chalcopyrite with minor bornite, covellite and chalcocite occur as pods and lenticular bodies in schistose sedimentary rocks. The resource was estimated at 2,025,000 tonnes grading 2-3% Cu (Zerda, 1974). This resource was not mined and is still in place. This resource was not calculated according to National Instrument 43-101 regulations and should not be relied upon. Although the mineralization at Palo is along major faults striking northwest, at the Leyte Base Metals property the mineralization is along structures that strike northeast and east and are proposed as complementary faults to the main northwest structures. Assay results of 2.2% Cu over 4m, and a grab sample of 8.37% Cu were obtained from a stockpile of ore visually estimated at 20 tonnes.
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In 1979 the Bureau of Mines and Geology performed an electromagnetic dip angle, ShootbackTM survey at 50m coil separation over 9075 line metres at the Curajo Copper Prospect in Palo using a Crone EM instrument (Morante and Ignacio, 1979). The depth of penetration was about 33m and several conductors striking north and northwest were identified. The authors noted that although the conductors could represent water-filled structures, several of the anomalies coincide well with mineralized outcrops, geochemical anomalies and trace mineralization in outcrop and one of them extends for 500m to the north and north-northeast. In 1981, a review of the geophysical results showed that only two of the five drill holes showed an anomalous cross-over at a depth of 13m, whereas the core intersected disseminated pyrite-chalcopyrite mineralization at a depth of 5-9m. The mineralization was identified along fractures that trend northwest with weaker northeastern components. In 1997, L. Solkoski carried out a brief field visit of the Barrio Suhi area for Homestake Mining, Canada. Although he noted ultramafic rocks, he believed that rather than being of Cyprus-type origin, the mineralization appeared to be likely of volcanogenic massive sulphide origin but was redeposited by faulting and folding. He reported results of 149-22,600 ppm Cu from 12 rocks, rock-chips and pyritic sand from stockpiled ore samples. Relatively high values of 170-580 ppb Au were obtained from three of these samples (Solkoski, 1997). In 2007, Brian Lueck wrote a summary report on the Taurus property for Metex Mineral Resources Corporation. He reported that at Kambalantong the mineralization appears to be syngenetic, but that it had been later sheared, brecciated and steeply faulted into breccia-vein faults. The best exploration targets for high grade mineralization are the intersection of structures that are a few metres wide, up to 1.5 km long and strike 060. He recommended a fence of ten drill holes from five collars at an azimuth of 270 and at 40m spacing, to minimum depths of 120m (Lueck, 2007b).
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In 2009, Philippine Metals Corporation carried out a six-week field program consisting of geological mapping, prospecting and rock sampling at five areas of the Taurus Property (Paloma and Garcia, 2009). The results from this program are documented and detailed later in this report in Section 10 Exploration.
7.
Geological Setting
Regional Geology The Philippines is part of a large volcanogenic and ophiolitic island arc located on the western edge of the area known as the Circum-Pacific Rim of Fire. The Philippines are a structurally complex combination of metamorphic terrains, ophiolitic complexes, magmatic arcs, continental rocks and sedimentary basins that have been subjected to collision, subduction and strike-slip faulting. Major strike-slip faults trend mostly northwest and north-northwest. On the eastern edge of the archipelago, the Philippine Trench dips west beneath most of the country, except in the north where it extends as the East Luzon Trench (see figure 6). On the western side of the country, from north to south, the Manila, Negros and Cotabato trenches dip to the east. The Palawan and Sulu trenches strike southwest and dip to the southeast but are inactive. The North Palawan Block represents the continental rocks that have been dated from late Permian to Jurassic in age. The remainder of the island is part of the younger Philippine Mobile Belt. Many areas of the Philippine Mobile Belt are composed of ophiolite complexes, of Jurassic to early Paleogene age, that occur with pre-Cenozoic schist and phyllite. At the base, the ophiolite complexes are usually composed of peridotite changing to layered and isotropic gabbro, sheeted dyke complex, pillow basalts and finally covered by pelagic sedimentary rocks. The ultramafic units contain chromite and nickel occurrences, and the laterite soils that developed over the ultramafic rocks may also contain lateritic nickel deposits.
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Malitao Project Malitao Project

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Leyte Copper Leyte Copper Project Project

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Legend Recent Sedimentary rocks Quaternary Volcanic rocks Oligocene Volcanic, sedimentary and metamorphic rocks Paleocene to Eocene Volcanic rocks Neogene Igneous rocks Upper Miocene to Pliocene Sedimentary and volcanic rocks Cretaceous Volcanic, sedimentary and metamorphic rocks Jurassic Sedimentary and metamorphic rocks Basement Complex Sedimentary and metamorphic rocks
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Philippine Metals Corporation Geolog gy Philippin nes

100 0 100 Kilometres 200 300 Leyte Copper Proje Philippines ect,
Revised: 2009.09.21 Date: 2009.09.21 y: By D.A. Beauchamp, P.Geol. Figure: 6
The stratigraphic sequence observed in an ophiolite suite corresponds to the lithosphere-forming processes at mid-oceanic ridges (see Figures 7). From bottom to top, these units are as follows: Tectonized ultramafic rocks: harzburgite- and lherzolite-rich mantle rock, cumulate peridotite: dunite-rich layers that settled from a magma chamber; Layered isotropic gabbro high level intrusions, plagiogranite; Sheeted dykes: vertical, parallel dykes which fed the pillow lavas below; Extrusive sequence: basalt flows and pillow lava at magma/seawater contact; Massive sulphide mineralization occurs at this level; Sedimentary rocks: mudstone and chert deposited after the crust formed. Intermixed basalt flows, pillow lava, and pelagic sedimentary rocks.
Figure 7. Cross-section of an ophiolite suite
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The sheeted diabase dykes and overlying basalts are formed along spreading mid-oceanic ridges that, along with the rest of the ophiolite sequence are obducted onto continental or island arc settings. Other rock suites within the Philippine Mobile Belt include magmatic arcs that contain thick sequences of volcanic flows and associated pyroclastic and sedimentary rocks, and intrusions of diorite composition. More recent volcanic flows and intrusions are the result of the active subduction event. Several sedimentary basins have developed within the Philippines volcanic arcs. Many large-scale faults strike north and northwest Including the Philippine Fault, a major strike-slip left-lateral fault that is related to oblique subduction of the Philippine Sea plate beneath the Philippine island arc. The fault zone extends along the entire length of the country, for about 1300 km, from Luzon Island in the north, southward to the island of Mindanao. The fault is currently active and in the last 100 years there have been at least ten major earthquakes of more than magnitude 7.0 on the Richter scale associated with it. On Luzon Island, the Philippine Fault consists of four en-echelon fault strands where a left-lateral slip rate of 8-13 mm/yr has been calculated. The Philippine Fault trends north northwest along the central part of Leyte Island about 30 km west of the Taurus Property.
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Local Geology The area to the west of Tacloban is underlain by part of a detached oceanic crustal fragment known as the Tacloban Ophiolite consisting of gabbroic and volcanic rocks (Figure 8 and 9). In a geological report, Quiwa et al. (1978) described in some detail the stratigraphy and geology of the area. Balce and Cabantog (2001) reviewed the geology of the area and consolidated the units into a sequence that corresponds to that of an ophiolite suite that has been overlain by a series of sedimentary rocks. Much of the following description is based on their review (See Table 3). Cretaceous: Tacloban Ophiolite Suite The Tacloban Ophiolite Suite is the oldest package of rocks on the property and underlies most of the Project area. Differential erosion has exposed the deep parts of the ophiolite in the north part of the area since the rocks appear to be tilted slightly to the south.
Table 3 Table of Formations QuaternaryHolocene Alluvium LateMiocenetoEarlyPliocene BagahupiFormationsedimentaryrocks LateMiocene Tanauanultramaficdiapir MiddletoUpperMiocene SanRicardoFormationsedimentaryrocks Cretaceous Palanogpelagicsedimentaryrocks OphioliteSuite Caibaanpillowbasalt Paglaumsheeteddykes Tigbaogabbro Tigawiliultramaficrocks
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sland sland Samar Is Samar Is
Tacloban Tacloban Ophiolite Ophiolite Suite Suite
Bagahupi
Bagacay TACLOBAN CITY
Legend Quaternary - Holocen ne Alluvium A Pliocene to Quaternar ry Vo olcanic rocks
PALO
Middle to Upper Mioc cene Sa Ricardo Formation an Sedimentary rocks Miocene to Pliocene Se edimentary and volcanic rocks
Leyte Island Leyte Island
Oligocene to Miocene e Se edimentary and volcanic rocks
e e e e e e ne ne on on on on Zo Zo Zo Zo tZ tZ u tt ullltt ulllt ulllt au au Fa Fa Fa Fa Fa Fa Fa eF eF ne ne ne ne pn piiin pn piiin piiin pp pp pp iiillliiip iiillliiip iiillliiip Ph Ph Ph Ph Ph Ph Ph Ph Ph
Vo olcanic rocks Cretaceous Ta acloban Ophiolite Suite and Palanog Formation Fault Ro oad Mineral occurrence
5 Kilometres
10
15
Philippine Meta Corporation als Geo ology Leyte Copper Project Area
The Tigawili ultramafic rock occurs at the base of the Tacloban Ophiolite Suite and is only exposed in the northern part of the area and is composed of harzburgite and of occasional dunite lenses and bands of pyroxenite.
The Tigbao gabbro occurs as dykes, and as detached fragments within the remobilized ultramafic bodies. It is isotropic near the upper part and pegmatitic in the lower sections, where cumulate phases are present. It is generally light-coloured but may be nearly black near the contact with the underlying ultramafic rocks. Forming an elongated mass striking northwest, gabbro intrudes the older formations and exhibits chilled borders along the contact zones. It occurs as dark green to light-grey sheeted dykes and pods and is dark brown on weathered surfaces. The massive gabbro contains pyroxene and olivine and is chloritized, sericitized and clay-altered.
The Paglaum sheeted dykes of fine- to medium-grained gabbro, diabase and minor basaltic dykes are generally 15-30 cm wide. The unit can be as much as 500-800m thick, although thrust faulting may have thickened the sequence. The foliation is parallel to the main orientation of the dykes but the chill zones have been obliterated by tectonic deformation. The dykes are composed of hornblende, plagioclase and minor pyroxene and have been slightly altered to greenschist facies consisting of epidote, chlorite and illite.
The Caibaan basalts are predominantly basaltic and andesitic flows and pillowed units that usually show layering parallel to the sedimentary bedding of the overlying rocks. The flows are highly chloritized, epidotized and cut by calcite veinlets.
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Cretaceous Palanog pelagic sedimentary rocks The pelagic sedimentary rocks are conformable to the underlying Caibaan basalt and are composed of chert, red mudstone, shale, sandstone and possibly vitric tuff but have been mostly eroded. Volcanic fragments make up a significant part of all sedimentary rocks. They are in beds 0.5-10m thick and may extend laterally for as much as several hundred metres. The presence of these sedimentary rocks usually indicates the a termination of the volcanic activity and a period of local quiescence in hydrothermal activity Upper to Middle Miocene San Ricardo Formation Unconformable to the ophiolite suite is a sequence of pelagic sedimentary rocks composed of conglomerate, sandstone, dark orange to red radiolarian chert, reddish mudstone and shale with occasional limestone beds that dip steeply (Balce and Velchez, 2001). On the property, the San Ricardo Formation has been mostly eroded and is now exposed only on the eastern side of the Ophiolite Suite in low valleys but has also been mapped in Tacloban City itself. The granule- to cobble-conglomerate is highly compacted and composed of subangular to subrounded blocks of schist, volcanic rock, limestone, shale, sandstone and andesite in a coarse-grained matrix. These rocks are occasionally traversed by quartz veinlets 5-15cm wide. This sequence may have been deposited in a shallow marine environment. Late Miocene Tanauan ultramafic diapir Ultramafic bodies, as cold diapiric intrusions of remobilized serpentinized ultramafic rocks, have intruded along major faults from depth. As a result of alteration from circulating fluids along deep penetrating faults, the mediumgrained ultramafic rocks have been serpentinized, decreasing their density allowing them to rise along the lower pressure fault zones. They occur
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elsewhere in northern Leyte along major fault zones such as the Philippine Fault to the west but have not been recognized in the immediate project area.
Figure 9. Schematic section of the Tacloban Ophiolite Suite (Balce and Cabantong, 1998)
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Late Miocene to Early Pliocene Bagahupi Formation Lying unconformably on the San Ricardo Formation, the Bagahupi Formation is composed of pebble conglomerate, sandstone and marly tuffaceous shale. The rounded to subrounded pebbles in the conglomerate are 1-10 cm and are composed of andesite, basalt, schist, gabbro and limestone. The sandstone is coarse and arkosic, and is present in the middle part of the formation. The Bagahupi Formation may have been deposited in a shallow marine or lacustrine environment. Holocene Alluvium West of the ophiolite suite, unconsolidated alluvial sediments are present on the gentle slopes that dip west and north. The sediments consist of eroded fragments from the Ophiolite Suite and are composed of clay, silt, sand, mud and gravel in river beds and on valley floor and are derived from the weathering of the surrounding rocks. Structural Geology The area has been strongly dissected by deep-seated faults and shear zones that transect all lithologies. The faults are left-handed and strike 330-340, dip 35-50SW, mostly parallel to the Philippine Fault Zone that traverses the central part of Leyte Island about 30 km to the west. The movement is accompanied by extensive shearing and fracturing, and the faults appear to be thrust and shear zones, possibly listric type, that host sulphide mineralization in several areas including the Kambalantong and Salvacion prospects (see Figure 4). Another parallel fault zone is located to the east on the island of Samar. A certain number of sympathetic faults striking 050-090 and dipping 50-80SE have been mapped on the property. These structures may have been the feeder zones for the early mineralizing fluids. They are the principal control for mineralization at Barrio Suhi area.
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The two major fault systems may be related to a change in the direction of the primary stress from the west to the northwest when the Philippine Fault Zone developed. They are characterized by intense brecciation and accompanied by epidotization and chloritization. Both fault sets appear to have been active during mineralization events and may have been reactivated to remobilize the mineralization. Metamorphism and Alteration Intense dynamothermal alteration has affected most of the mafic and ultramafic rocks on the property including the basaltic flows as a result of pressure distributed along faults and shear zones. Spilitic metamorphism affects most of the mafic rocks of the Tacloban Ophiolite Suite and ranges from zeolite to greenschist and to amphibolitic facies. The greenschist metamorphism has intensely altered the mafic sheeted dyke complex in particular and appears in the assemblage of epidote-calcite-tremoliteactinolite-albite. Silicification is also common in association with the massive sulphide mineralization whereas chloritization is more associated with the disseminated mineralization and forms a broad halo around the massive sulphide horizon, ranging from a few metres or more. From work at the Troodos ophiolite complex in Cyprus there is evidence that lowtemperature silicification, from hydrothermal activity, continues late in the process, even after the manganese- and iron-rich sediments have precipitated some distance away from oceanic spreading axes and that gold may be precipitated at that time (Prichard and Maliotis, 1998).
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8.
Deposit Type
In 2001, Balce and Velchez carried out an extensive literature search and field studies, and proposed that the type of mineralization at the Leyte Copper Project as Cyprus-type massive sulphide mineralization, the volcanogenic sulphide deposit type found in ophiolite rocks. An ophiolite is an assemblage of mafic and ultramafic rock from the ocean crust that has been tectonically obducted onto a continental margin or island. It is usually characterized by ultramafic rocks at the base that have been intruded by gabbro and sheeted dikes and then overlain by pillow lavas, and deep-sea sediments. Cyprus-type massive sulphide mineralization is typically composed of one or more lenses of massive pyrite and chalcopyrite that are hosted by mafic volcanic rocks. These lenses are often underlain by a well-developed pipe-shaped stockwork feeder zone (Figure 10).
Figure 10. Cross Section of Cyprus-type mineralization
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The lenses of sulphides are often in marine pillowed basalts near the transition to the overlying argillaceous marine sediments. Many of the lenses are structurally controlled and are oriented parallel to steeply dipping normal faults. The concordant massive sulphide lenses often overlie cross-cutting zones of intense alteration with associated stockwork and disseminated mineralization. The ore is usually composed of massive, occasionally brecciated, pyrite and chalcopyrite and other associated copper sulphides. The overlying brecciated chert layers often contain disseminated sulphides. The ore lenses are structurally controlled and usually cluster or align along the normal faults near the transition from mafic pillow basalts to the overlying sedimentary rocks. In geophysical surveys, the lenses of massive sulphides usually show an electromagnetic signature while the disseminated sulphides can be identified in induced polarization surveys (Hy, 1995). There is no particular characteristic age for these types of deposits. Other than in Cyprus where they formed from the Triassic to the mid-Cretaceous, the deposits have been identified in rocks of Ordovician to Recent age. Cyprus-type deposits are present in Canada at Tilt Cove, Newfoundland and in several locations such as at Chu Chua in British Columbia, at the Ice property in the Yukon, and also at Turner-Albright in Oregon and in the East Pacific Rise off the west coast of Mexico (Francheteau et al., 1979). Although the median size of Cyprus-type deposits is reported to be 1.6 Mt grading 1.7 % Cu, they can also contain 0-33 g/t Ag; 0-1.9 g/t Au and 0-2.1 % Zn (Cox and Singer, 1986). Certain deposits contain larger resources such as the Turner Albright area in Oregon where 3 million tonnes of ore grade 1.46% Cu, 3.33% Zn, 15 g/t Ag, 3.77 g/t Au and 0.06% Co (Kuhns and Baitis, 1987) and at Tilt Cove in Newfoundland, where 6.7 million tonnes of ore grading 1.24% Cu were extracted (Sangster, 1988). In Cyprus, 33 deposits have been documented
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that range from 50,000 tonnes to 16 million tonnes, for a cumulative total of 105 million tonnes of ore (Hannington et al., 1998). These resources are not compliant with NI 43-101 regulations and are not located on the Leyte Island Copper Project. There is no guarantee that economic resources can be discovered on the Leyte Island Copper Project. 9. Mineralization
Sulphide mineralization in the area west of Tacloban City and within the Leyte Copper Project has been known since at least the 1930s. At least eight mineral occurrences of copper sulphide mineralization have been documented over a strike length of 17 km in this area (Figure 3). Palo Curajo, Barangay San Jose C. Fortanos and D. Fajando (1964), Mining Engineers with the Mines and Geosciences Bureau, described the presence of a mineralized vein, 0.1-1.2m wide, from which a sample reported 11.52% Cu, 1.0 g/t Au and 78.5 g/t Ag. The mineralization is reported to strike 290SW. Palo Consolidated Mines extracted some ore from an adit about 70m in length and in an area 100m to the east, drilled 17 X-Ray drill holes, excavated three test pits and two adits with lengths of 6m and 27m. A third occurrence is located about 140m to the north. In all areas, massive, blocky, dark green basalt, often sheared and described as mafic schist in the field, is cross-cut by occasional quartz-epidote veinlets and is intercalated with metasedimentary rocks usually described as phyllite but represented by sandstone, conglomerate, shale and ferruginous chert. Much of the mineralization is within fractures in the sedimentary rocks; the fractures are filled with clay and breccia, and the wall rocks are chloritized. A soil survey carried out in 1978 in the area showed that from 165 samples collected, the background values are 120 ppm Cu and 130 ppm Zn and that
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anomalous values are above of 290 ppm Cu and 280 ppm Zn (Quiwa et al., 1978). In 1997, Lawrence Solkoski quickly examined the Palo area in the search for gold prospects for the account of Homestake Mining Canada. He was of the opinion that the area resembled Kuroko-type volcanogenic massive sulphides rather than Cyprus-type mineralization. Of 12 rock samples analyzed, four from the Palo area reported 0.1-22.6% Cu and 110-580 ppb Au. The other eight samples with background values for gold reported 0.01-0.33% Cu (Solkoski, 1997). Sulphides include pyrite, chalcopyrite, bornite, chalcocite and covellite (Fortanos and Fajando, 1964). Salvacion Area The Salvacion area is located about two kilometres northeast of Kambalantong where an exploration adit is oriented at 065. The numerous moderately- to steeply-dipping faults present may have served as channel ways for mineralizing fluids. Where pyrite and chalcopyrite occur as disseminations and clustered aggregates the rocks are intensely argillized and chloritized. Chloritization is extensive and is also associated with post-ore faults, so should be used cautiously as a guide to ore. Mineralization is in the basalt, and copper-rich pyrite occurs with significant specular hematite, magnetite and marcasite along the foliation planes or as mineralization replacing the host rock. Paderes (1970) noted that the mineralization at Salvacion is somewhat different from other areas in that the pyrite occurs with marcasite along the foliation planes, or occasionally as replacement along the host rock. The copper sulphide content of these occurrences is low.
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Palanog-Kambalantong This area is underlain by rocks of the Tacloban Ophiolite Suite that have been partially covered by the Palanog Formation. Intense silicification, chloritization and epidotization are present at the contact between the volcanic and sedimentary rocks. Several exploratory tunnels and trenches are present at Palanog. As part of their study of the area, Fortanos and Fajando (1964) reported the presence of a vein about 2.023.0m which averaged 1.4% Cu and 12 g/t Ag, from samples of massive sulphides composed of chalcopyrite, bornite, and chalcocite. The area hosts two sulphide veins that strike 296 dip 25N and strike 070 dip 15SE and subsidiary faults that strike 065 with a dip of 50SE and strike 350 with dip of 90. Highly silicified mafic schist, consisting of sheared volcanic rocks, contains pyrite, chalcopyrite and chalcocite. (Quiwa et al, 1978). The sulphides occur as infillings in breccias and as replacements of breccia fragments. About 80% of the mineralization is spongy-textured chalcopyrite, 10% is represented by pyrite, and gangue minerals represent the other 10%. The copper mineralization on surface appears to be concentrated within the mafic sections of the ophiolite and particularly the basaltic rocks. The mineralization was emplaced at low to moderate temperature and consists of chalcopyrite, chalcocite, covellite, bornite and pyrite-marcasite as fracture-filling along faults and fractures that trend predominantly northwest. Minor replacement occurs along the wallrock. Sulphide mineralization was reported in the Kambalantong as early as in the 1930s. Surface prospecting was carried out, and test pits and adits were excavated.
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In 1970, Armando Paderes, a geologist with the Bureau of Mines and Geology examined the occurrence in Kambalantong where it had been explored by test pits, trenches and an adit at a bearing of about 060. Paderes (1970) and Balce and Velchez (2001) reported a resource of 4,530,000 tonnes of ore grading 2.2% Cu. Although this resource is located on the Taurus Block of the Leyte Copper Project, it was not calculated according to the standards of NI 43-101 and should not be relied upon. The mineralization is hosted by breccias consisting of coarse breccia fragments in major faults that strike 320-340 and dip steeply to the southwest. Two important, parallel, breccia-filled anastomosing structures are more than 30m wide and the trend is traceable for at least 6 kilometres along strike to the south toward the PaloBarangay San JoseCurajo region (Balce and Velchez, 2001). Additional steeply-dipping tension fractures strike 060 to 070 and range from two to four metres in width appear to be related to the major structures and localize high grade fissure-filled replacement mineralization. They often occur as tabular bodies but also occur as irregularly-shaped bodies. This structure is accompanied by many steeply-dipping parallel faults that may have acted as pathways for the mineralizing fluids. The mineralization consists of low- to moderate temperature sulphides, composed mostly of chalcopyrite, chalcocite, covellite and bornite. Quartz, epidote, calcite and chlorite are the gangue minerals. The orange to rusty red gossan associated with the mineralized faults is 10-20 metres thick and immediately below the gossan is a supergene sulphide enrichment zone of chalcocite and covellite, partly or wholly replacing primary sulphide minerals. A channel sample across one of the belts at Kambalantong averaged 2.26% Cu (Paderes, 1970). The country rock is composed of basalt and metamorphosed sedimentary rocks including cyclically interbedded shale, limestone, graywacke, chert and possible
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thin lenses of limestone that have been intensely sheared, brecciated and mylonitized by tectonic periods since their deposition. Massive, thick and fine- to medium-grained andesitic flows are occasionally identified within the sedimentary sequence. Gabbro occurs in several varieties, from fine-grained, to ophitic to pegmatitic. Hornblende andesite dykes are thought to be feeder zones for the gabbro bodies. The sulphides occur as infillings in the breccia interstices and as replacements of breccia fragments, but also disseminated in the country rock. Malayahay Paglaum The Malayahay prospect was explored with an adit by Taurus Mines in the early 1970s. The adit trends about 022 and extends about 37m to explore the northwestern extension of vein from the Kambalantong area. Massive to blocky basalt and the overlying strongly sheared phyllite are in steeply dipping zones 0.1-4.0m wide. Limonite and hematite outline the breccia fragments of the basalt. The orientation of the shearing trends about 340, but with associated steeply dipping veins striking about 070. A structure dips 25-35W near the portal and the copper-bearing sulphide zones range from 1 to 10 metres in width. The 2-3% sulphide content occurs as interstitial filling and as disseminations in the breccia and is composed of pyrite, and lesser quantities of chalcopyrite and traces of bornite and covellite. San Roque Prospect This area was explored in the 1970s by Palo Mines Inc. which excavated four adits and three test pits in a radius of 150m. Of the three adits that are still accessible, one is oriented at 140, the other at 320 and the third at 085. The area is underlain by basalt that is partially covered by Palanog chert and phyllite. The adits were excavated along the contact between sheared phyllite and basalt. Sulphides are represented by pyrite and minor chalcopyrite. A
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stockpile of massive sulphide was noted a few metres from the adit. Quartz veins contain few sulphides but contain hematite, chlorite and epidote. Caibaan The Caibaan area is part of the Suhi 0059 permit application. In the 1950s an adit in the Caibaan area was high-graded and the sulphides were shipped directly to the smelter. C. Fortanos and D. Fajando (1964) examined two mineralized veins and three pits at Caibaan although only one vein had been excavated at the time. They indicated that that they thought that there could be more veins. Six X-Ray drill holes intercepted one vein over a 100m strike length. The vein strikes 080, dips 55N and is 1.5-4.5m wide. Three test pits did not expose the full width of the vein. Mineralization consists of pyrite, chalcopyrite, bornite, galena and quartz. Wall rocks assay 0.20% Cu (Fortanos and Fajando, 1964). The area is underlain by the Tacloban Ophiolite Suite and by the later San Ricardo Formation. The area has been sheared by two faults that trend northwest and dip 30-40SW. The volcanic sequence of the ophiolite suite is highly chloritized and is intercalated with sandstone, shale and ferruginous chert. Although Fortanos and Fajando could see no mineralization in outcrop, massive copper mineralization consisting of fine-grained pyrite, chalcopyrite, chalcocite and covellite was observed in the core and in a stockpile. The copper mineralization at surface and in the shallow pits is supergene. Occasional crystals of galena and quartz were also observed. In the drill core, sulphides consist of pyrite, chalcopyrite, chalcocite and covellite A group from the Geosciences Bureau re-examined the area in 1978 and sampled the stockpile of ore near the adit and reported 7.47% Cu. A soil survey in the area showed that from 69 samples collected, the background values are 130 ppm Cu and 90 ppm Zn, and anomalous values are above of 320 ppm Cu and 230 ppm Zn (Quiwa et al., 1978).
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Suhi Bacagay In 1972, Armando Paderes carried out a geological verification of sulphide mineralization at the Bagacay occurrence for Francisco Garcia the claim owner. He reported that the test pits and trenches were unsystematically laid out and sparsely distributed (Paderes, 1972). The area is underlain by the Tacloban Ophiolite Suite; in the topographic lows on the eastern side of the Leyte Copper Project Property the ophiolite suite is covered by sedimentary rocks of the San Ricardo Formation consisting of chert, greywacke, slate and phyllite. All rocks are tightly folded and structurally faulted, sheared and fractured. The mineralization occurs along a structure that strikes 055 and dips moderately to the southeast. The sulphide mineralization was exposed by a series of test pits and occurs disseminated and as irregularly-spaced stringers and lenses of pyrite, hematite and chalcopyrite. Calcite, quartz and epidote occur as veinlets in the host rock. Analyses of the mineralized rock reported values of 0.40%, 1.52%, 1.84% and 5.39% Cu. Molybdenum was not detected in the rocks (Paderes, 1972). Cabalawan-Barrio Suhi Eleuterio Gamus, Supervising Geologist, and Jovito Lauron, Geologist, of the Bureau of Mines in Manila, carried out a verification report on the Barrio Suhi copper occurrences in 1968 for Leyte Base Metals. The Barrio Suhi area is underlain by a complex assemblage of metamorphosed rocks with fine to coarse clastic rocks that have been folded and faulted with accompanying volcanism. The sedimentary rocks are composed of sandstone and tuffaceous shale. Although difficult to establish because of the disturbed nature of the rocks, the predominant trends in primary sedimentary bedding appear to be to the northeast and northwest. The inferred folds appear to be asymmetric. Mineralization consists of pyrite and chalcopyrite in veins, sheets, lenses and in erratic pod-
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shaped bodies along the faults. The exposures were revealed by pits and trenches. Seven outcrops are described in detail. One lens measures up to 0.35m 6.0m grading 4.48% Cu and another lens is 0.5m 8.0m with 5.95% Cu. Additional work was recommended by Gamus and Lauron including geochemical and geophysical surveys to identify additional occurrences in the area (Gamus and Lauron, 1968).
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10.
Exploration
In 2009, Philippine Metals Canada Philippines, Inc., a subsidiary of Philippine Metals Corporation, carried out a field exploration program of geological mapping and rock and soil geochemical sampling on the Taurus Exploration Permit. The principal objective was to document and confirm the mineralization in the historical workings and to characterize the type of mineralization on the property. The geological mapping is based on field examination of five areas on the property. Geological Mapping The region is part of a complex geological environment that has undergone extensive structural displacement, some of which is still ongoing. The Tacloban Ophiolite suite has been classified as a Supra-Subduction Zone (SSZ) type that has the geochemical characteristics of island arcs but has the structure of oceanic crust. They are thought to form by sea-floor spreading directly above a subducted oceanic lithosphere. SSZ ophiolite suites are more common than the Mid-Ocean Ridge Basalt (MORB) ophiolite suite that has a different origin and geochemistry (Pearce et al., 1984). The SSZ ophiolite suites form during the early stage of subduction but prior to the development of the volcanic arc. They are often associated with chromite mineralization, with volcanic- and ultramafic-hosted nickel-copper sulphides and with platinum group elements (Balce and Cabantog, 1998). The exploration program has confirmed that massive sulphide mineralization is present in many areas of the property. In general, the sulphide mineralization encountered on the property occurs in faults, fractures and shear zones, and is spatially associated with the basalt and the overlying sedimentary rocks of pelagic origin.
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Diligent geological work has identified and classified four types of mineralization on the property (Paloma and Garcia, 2009). These types can be grouped in the following categories: Type 1: Disseminated and breccia fillings: stockwork and boxwork sulphide mineralization containing chalcopyrite, pyrite and occasionally bornite, chalcocite, covellite in silica-sulphide breccias and phyllite breccias. This type is present at Kambalantong, Palo-Curajo and Malayahay. It represents higher grade mineralization and is associated with the footwall side of the geologic structures and largely controlled by faults with low to moderate dip and shear zones. Type 2: Massive sulphides: as irregular pods or lenses that pinch and swell along a fault. Probably the most important economic mineralization. Occurs at Kambalantong, Palo-Curajo and at Salvacion B. Chalcopyrite represents 60-80% of the sulphide by volume, pyrite about 10-30% and gangue at 10-20%; often surrounded by disseminated mineralization. Type 3: Sheeted and fissure filling sulphide veins: in phyllite breccias, and occasionally in basalt in moderately- to steeply-dipping sulphide fractures; widths range from a few centimetres to more than 2 metres. Characterized by dark, thin sulphide bands along the shear plane. Fractures are filled with clay, crushed rock fragments and considerable amounts of ilmenite and hematite with copper and pyrite. The wall rock is chloritized, pyritic, and metamorphosed. Typical ore zones are observed at Malayahay, Kambalantong and PaloCurajo and form near major shear structures. This type sometimes overlaps with Type 1 at Palo-Curajo and at Kambalantong. Type 4: Shear and fracture-filling sulphides in low- angled thrust faults. Common at Palo-Curajo but may be of limited extent. Copper sulphide is restricted within the main shear zone, occurring as disseminations and fillings within the massive, competent host rock basalt. This classification of the styles of mineralization can be compared with the summary for Cyprus-type that Balce and Velchez (2001) prepared for the Tacloban area (Table 4).
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Genesis
Mode of deposition
Ore zone
Sulphides Ore type and iron mudstones
Oxidation Mode of Sedimentary formation
Magmatic
Fumarolic
Exhalative-sedimentary
Massive sulphides
Hydrothermal
Stockwork, cavity, fracture-filling disseminations
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Description Type of mineralization Minerals other than pyrite Average ore grade %S %Cu Zone 1 Iron-rich and siliceous mudstone, oxidation of sulphides; lenses of friable black ore. Graded bedding with grains of pyrite and slumping. Boulders of colloform sulphide Type 1 Fragmentary ore consisting of angular and hard blocks of yellow ore in a matrix of black sandy ore. Type 2 Sedimentary rocks: goethite, silica, montmorillonite Sulphides: covellite, sphalerite, chalcopyrite, marcasite 45-50 0.5-1.5 Zone 2 Marcasite, sphalerite, pyrrhotite (v. rare), bornite, (v. rare), galena (v. rare), chalcopyrite 40-45 1.0-4.0 Zone 2a Fragmentary sulphide, blocks of pyrite in siliceous matrix with decreasing amount of black friable sulphide. Type 3 Marcasite (rare), chalcopyrite, sphalerite (rare), pyrrhotite (v. rare), quartz, jasper, chalcedony 30-40 0.5-1.5 Type 4 Chalcopyrite, sphalerite, quartz, illite, jasper, chlorite 15-30 0.4-1.2 Original More coarsely crystalline pyrite as lava surface cavity-filling with much quartz and jasper. Zone 3 Discrete fracture-filling with pyrite, quartz and jasper. Disseminations of pyrite in vesicles and cracks. Type 5 Chalcopyrite (rare), sphalerite (v. rare), rutile (rare), quartz, illite, jasper, chlorite 5-15 0.2-0.5
Table 4. Summary of characteristics of Cyprus-type mineralization (Balce and Velchez, 2001)
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Although there have been several phases of faulting, two or more important nearparallel mineralized structures striking mostly 340-350 and dipping 40-60W are present on the property. The westernmost of these extends for at least six kilometres from Palo northwest to Kambalantong and to Malayahay. Although there may have been some tilting of the units to the south, the mineralization could have a vertical extent of at least 135m, as measured from the difference in elevation between Malayahay and the adit at Don Juan in the Kambalantong area. Mineralization also occurs in breccia along fractures and faults that strike generally 045-075 and dip steeply. These faults are thought to be late in the structural development of the area and may be sympathetic faults related to lefthanded movement along the Philippine Fault to the west. Major remobilization of mineralization may have occurred along these structures, along which the sulphides and gangue minerals appear to have been deposited at lower temperature than along the major structure striking northwest. The width of the mineralized structures ranges from less than one metre to upwards of 20m at Kambalantong although it is possible that low-angled thrusting may have duplicated the ore zones. Low-grade greenschist metamorphism has affected the sheeted dyke complex which has altered to calcite, epidote, actinolite and calcite. Epidote has also been noted around the pyrite mineralization at Palo. Extensive silicification and chloritization have been observed around some of the pyrite-chalcopyrite mineralization. Rock Sampling A rock sampling program was carried out in five areas of the Taurus property. The sampling consisted of chip sampling the rock face of many adits and trenches.
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Palo Area Three areas of the Palo prospect were examined (Figure 11). Area 1 is the site of an adit where mining occurred in the early 1970s. Mineralization occurs in widths of 1-15m along a fault structure that trends 350-010 and dips 70-80W. Of the 67 samples taken in this area, 15 were from one channel inside the adit where results of 1.30% Cu and 0.11% Zn were reported over 9.3m from a sample of fractured and sheared sulphide breccia. Other significant channel samples in the adit reported 0.82% Cu over 2.5m from sulphide breccia, 0.30% Cu over 13.4m from dark green basalt that contains no visible sulphides, and 0.23% Cu and 2.50% Zn over 11.4m from sheared phyllite that contains disseminated sulphides (Figures 12 and 13). Outside the adit, several trenches were excavated from which a total of 52 samples were sent for analysis. One series of chip samples average 0.60% Cu over 9.3m from sheared metasedimentary rocks. This interval includes 1.17% Cu over 1.9m where no visible sulphides were observed. Other intervals include 0.38% Cu over 7.6m, 1.32% Cu and 0.28% Zn over 0.9m and 0.11% Cu and 1.68% Zn over 3.4m. In Area 2 to the east the five chip samples returned background values of 72-140 ppm Cu. Located 140m further north, Area 3 may be an extension of Area 1 and was tested with an exploratory tunnel. Seven chip samples were taken from two trenches. Values of up to 0.40% Cu were reported over 1.7m from grey massive siliceous sulphide. Another chip sample with no other adjoining sample reported 0.95% Cu and 1.70% Zn over 0.5m from a sample described as massive sulphide in basalt. Several other occurrences of copper sulphides are present in the area (Paloma and Garcia, 2009).
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lity pa ici un
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Area 3
Area 2 Area 1 Open Cast Mining
Philippine Meta Corporation als

50 0 50 Metres 100 150
Palo A Area Mineralize Areas ed

Disseminated Sulphides Trench
Adit Trench
A'
Rock and Chip Samples
ss C ro
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Schist
Massive Sulphides Massive Sulphides
Disseminated Sulphides Sc chist
Basalt
Basalt Disseminated Sulphides Basalt Phyllite Metasedimentary rocks
Philippine Meta Corporation als

10m
Palo Ar 1 rea Geology and sam mple locations

Leyte Copper Proj oject, Philippines
modified from Paloma and Garcia, 2009
A A' Disseminated sulph hides East
West
160m Pit
150m Zone O Zone L

Phyllite Metasedimentary rocks
Adit Zone A
Basalt
Schist
140m
Structurally-controlled S Sulphides
Zone A - 12 rock chip samples average 0.40 % Cu over 38m Zone L - 13 rock chip samples average 0.48 % Cu over 61.2m Zone O - 4 rock chip samples average 0.20 % Cu and 1.99 % Zn over 18 8.9m
10m
View to north
Philippine Metals Corporation C
Palo Area A Cross Section
Leyte Copper Project, Philippines
Salvacion Area At Salvacion, the mineralization occurs as fissure-filling and to a lesser extent as selective replacement of breccia fragments and certain wallrock areas. Several test pits, collapsed adits and stockpiles of massive sulphides were identified. The area is underlain by basalt that is capped by cherty sedimentary rocks. Epidote and chlorite occur in veins filled with chalcedony. Mineralization occurs as brecciated massive sulphides, finely-disseminated sulphides and local replacement along shear zones trending 030 and dipping 50NW. At Salvacion A, three channel samples were collected, one of which returned a value of 0.27% Cu over 1.5m from light green to grey phyllite that contains hematite along fracture planes. At Salvacion B eight separate channel samples were taken over widths of 1-2m. At the northern pit where a massive sulphide lens was excavated, the 2009 exploration program reported significant assays of 0.98% Cu, 6.20% Cu and 5.65% Cu over 1m in three separate samples taken. A grab sample also reported 0.98% Cu .Other samples reported 0.98% Cu over 2.0m and 0.59% Cu over 1m, both from sheared phyllite containing disseminated sulphides, and a grab sample that reported 1.37% Cu from dark grey massive sulphides from a test pit. At Salvacion B an open cut area 10m in diameter and several test pits were identified. The area is underlain by the same massive basalt flows and occasional metasedimentary rocks that are capped by thin beds of cherty sedimentary rocks (Figure 14). Mineralization consists of finely disseminated sulphide and sulphide replacement along the shear zones.
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Disseminated Sulphides Disseminated Sulphides
Structurally-controlled sulphide mineralization
Basalt
Schis st Disseminated Sulphides
Adit
Stockpiled ore Stockpiled ore

Philippine Met tals Corporation
10m
Buen Suerte ntong Area Kambalan Plan View

Leyte Copper Pro oject, Philippines
Palanog Kambalantong Area Several areas of the Palanog-Kambalantong area were sampled and a total of 154 rock and channel samples were submitted for analysis from this area. The mineralization extends over a length of at least 1200m along a structure that strikes 335. At the Palanog East area, five rock samples and one grab sample were submitted for analysis. All are from massive sulphides in breccia near a contact with basalt. Results show values of 2.6% Cu and 5.4% Cu over one metre and a grab sample from a muck pile reported 3.1% Cu. One sample from the footwall of the fault zone near the contact with basalt reported 13.7% Cu over 2.2m in massive sulphides. Don Amado Adits The Don Amado area contains three interconnected adits that were excavated by Taurus Mineral and Oil Corporation. Two of the adits trend 270 and the third one is at 010. The three adits have a cumulative length of about 200m and average 2.5m in height and 2m in width. The area is underlain by generally massive, chloritized, dark green to grey basalt flows that have been chloritized and epidotized, and by sheared, brecciated and fragmented sedimentary rocks that have been metamorphosed to phyllite. The two shear zones have widths of 3-20m along low-angle possible thrust faults that dip west. The massive sulphide lenses strike 020-030 and dip 35-50W. Mineralization appears to favour the areas of competency contrast at the contact between the basalt and sedimentary rocks. The sulphide mineralization occurs as infilling among the breccia fragments, along the foliation and shear planes, and is disseminated in the breccia clast, matrix and country rock. The copper sulphide is mostly chalcopyrite and minor amounts of covellite and bornite are present. Limonite, hematite and jarosite are present along the fractures.
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A total of 80 samples were submitted for analysis from inside the adits and 16 from surface workings. Most of the surface samples reported values of 100-800 ppm Cu but three samples described as intermixed oxidized and sulphidebearing muck material from historical workings reported 0.56%Cu, 3.52% Cu and 0.17% Zn, and 4.11% Cu and 0.35% Zn. The samples from the underground workings are mostly from sulphide breccia with occasional phyllite. The samples were taken from throughout the workings but are mostly non-continous. The results show many intervals of 0.32-0.35% Cu over 1m and several at 0.85-2.00% Cu over 2.0m. Several of the samples contain 0.15-0.22% Zn over 1.1-1.6m and three samples from one area contain 0.40%, 0.52% and 1.44% Zn over 1.7-2.0m. Although some samples have high contents of copper and zinc, there appears to be no correlation between the two metals. Buen Suerte Adit The Buen Suerte adit was excavated to mine the northern extension of the Don Amado zone of mineralization about 80m to the north. The mineralized widths for the massive sulphides are 4-10m, principally aligned along the northwest structures that strike 330-340 and dip 45W. The geology is very similar to the Don Amado area and is underlain by massive, dark green to grey basalt and sedimentary rocks that have been metamorphosed to phyllite. The sulphide mineralization is predominantly located in the more competent sedimentary units, particularly along the shear zones and fractures. The metasedimentary rocks are brecciated and fragmented. The two principal directions of the structures are oriented at about 045 with a steep dip and at 330-340 with dips of 40-45SW. Of the 49 rock samples submitted for analysis, 13 are from the muck pile, consisting of oxidized sulphide-rich rock. Nine of the samples from the muck pile reported 0.13-0.28% Cu.
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The adit extends about 40m toward the north-northwest along one of the major faults: the north extension of structure identified in the workings at the Don Amado area. Most of the samples taken from the adit are from massive sulphide breccia near the contact between basalt and sheared phyllite. The samples often contain 0.2-0.95% Cu over 1.5-2.4m, and two contain 1.30% and 1.49% Cu over 1.5m. Two nearby samples reported 4.4% Cu over 5.4m and 10.8% Cu over 3.0m (Figure 14). Overlying the breccia zone is a lens-shaped massive sulphide body, about 1.5m thick, dipping gently and containing up to 60-70% sulphides represented by chalcopyrite, pyrite, bornite and covellite. Grades of mineralization encountered in the adit include several channel samples with 0.11-0.95% Cu over 1.5-2.4m but also important intervals of 1.49% Cu over 1.5m, 4.40% over 5.4m and 10.83% Cu over 3.0m. Don Juan Adit At the Don Juan area three samples were submitted from the near the end of the adit that extends for 105m. This adit may have been driven to intersect the extension at depth of the Don Amado to the southwest. Results show 61, 64 and 380 ppm Cu over 1.2-1.8m from basalt and phyllite. Located about 200m northeast of the Don Amado adits at an elevation of 61m asl, the Don Juan adit was oriented at 250 and extended for a distance of 105m. It may have been dug out to intersect the downdip extension of the mineralized zone at Don Amado. The tunnel was excavated in pillowed basalt that is overlain by metasedimentary rocks that have been metamorphosed to phyllite and chert. No mineralization was identified in the adit.
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Massive sulphide lens
Disseminated Sulphides
Phyllite Sedimentary rocks
Basalt Disseminated Su p des Sulphides
Phyllite Sedimentary rocks
Philippine Meta Corporation als 10m Salvacio B Area on Plan View n

Leyte Copper Proj ject, Philippines
Revised: 2009.09.21 Date: 2009.09.21
By: D.A. Beauchamp, P.Geol. Figure: 15
Malayahay Area All of the samples from Malayahay are from the adit that extends for 37m that extends through phyllite and basalt. Of the 16 samples taken, two are field duplicates. Four channel samples taken two on each side of the adit have reported values 0.37% Cu and 0.54% Cu over 5.3m in sheared, brecciated and oxidized phyllite. San Roque Area Eight channel samples and one grab sample were taken from the area. Four of these channel samples were taken from the stockpile from the nearby adit and reported 0.22-0.42% Cu over 5.8m but the channel sample from about ten metres within the adit reported only 145 ppm Cu. The other four samples taken from an abandoned exploratory tunnel in basaltic lava and returned 0.16-0.36% Cu over 1-3m. 11. Drilling
Historical drilling was reported for some mineral occurrences mostly in the Caibaan and Palo area. This drilling was carried out in the 1960s and early 1970s with X-Ray core size and neither the drill logs nor the core is available. A map showing the location of several of the drill holes in the Palo area is available. Diamond drilling has not been carried out on the Leyte Copper Project since that time.
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12.
Sampling Method and Approach
Philippine Metals has re-sampled several mineral occurrences on which historical documents have reported anomalous values for copper, but also for a few elements such as gold and silver. Every one of these re-sampled areas has confirmed the mineralization originally identified. A few grab samples were taken, but most samples are representative channel samples that were chipped along tunnel faces or in trenches over 0.1-10.0m with a few of them over as much as 14.0m. Including field duplicate samples, the distribution of the samples is as shown in Table 4:
Table 5 Sample Distribution
Area Number of samples
Palo Salvacion Palanog Malayahay SanRoque Total
80 15 154 16 9 274
All sampling was carried out by field personnel hired by Philippine Metals Canada and supervised in the field by the company project geologist. 13. Sampling Preparation, Analyses and Security
The samples were collected in the field by field employees of the company and were carried out to the field office. The samples were then boxed and packaged and shipped by truck directly to the laboratory in Manila. The security of the handling of the rock samples is acceptable. The samples were analyzed by McPhar Geoservices (Phil.) Inc. in Manila. The laboratory has been in operation for more than 30 years. It was accredited under ISO 9001 in 2000 and ISO 17025 accreditation is in progress. It was visited by D.A Beauchamp and found to be clean, efficient and well-organized.
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Laboratory Procedures Upon arrival at the laboratory the samples are sorted, dried and crushed to -1/4 to 1/8. A pulp of the sample is then created by mixing, splitting and pulverizing the rock fragments. A sample of 0.25g of the pulp is digested in aqua regia, a combination of HNO3 and HCl acids to dissolve the minerals including sulphides. The sample is then analyzed by Inductively Coupled Plasma (ICP). Gold analysis is performed by fire assay. The pulp is weighed and mixed with a flux. A reducing or oxidizing agent is added and the sample is fused at 1090C. The lead button is separated from the slag and a dor bead is prepared after cupellation at 860-900C. Parting of the gold occurs after adding HNO3 and the prill is annealed at 800. The prill is weighed to an accuracy of 0.001mg, dissolved and analyzed in an Atomic Absorption Spectrometer (AAS). 14. Data Verification Quality Assurance and Quality Control Program As part of its rock sampling program, Philippine Metals Canada Philippines implemented a Quality Assurance and Quality Control (QA/QC) Program. The program consisted in adding analytical standard samples, requesting duplicate analyses and inserting standard blank samples so that the accuracy and precision of the results from the laboratory could be verified. In addition to the 274 rock samples that the company submitted for analysis, 14 samples from three analytical standards were submitted at regular intervals to verify that the results returned from the laboratory are accurate. These standard samples were purchased from CDN Resource Laboratories Ltd., of Delta, BC. Standard samples are created, pulverized and homogenized by the laboratory from rock samples which are then analyzed in 10-12 laboratories, from which recommended values are established for certain elements such as copper, gold, lead, zinc, etc. To be acceptable, it is recommended that the results from
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the laboratory preferably be within the mean plus two standard deviations. Barry Smee, Ph.D. consulting geochemist has suggested that the mean plus three standard deviations is also acceptable (Pers. Comm. 2005). Standard sample CDN-CGS-21 has been tested as a standard for copper and gold. The four samples submitted for analysis were within the recommended norms of mean plus or minus two standard deviations for these two elements. Standard sample CDN-HZ-3 has been approved as a standard sample for gold, silver, copper, lead and zinc and all four samples analyzed in this program reported results within the mean plus two standard deviations. Standard sample CDN-HC-2 is a standard for silver, copper, lead and zinc. All of these were within the mean plus two or minus two standard deviations, except for the results for lead, which were within the mean minus three standard deviations. Since lead is not an important element in this type of mineralization and that the results for lead from standard sample CDN-HZ-3 were acceptable, we can accept the results for the other elements of this standard. A total of 33 rock samples were analysed a second time to verify the repeatability of the results. All repeated analyses correspond very well with the results of first for all elements identified. Nine duplicate samples were also submitted. A comparison between the original and the duplicate sample compared well for all elements analyzed To verify that the instrument and equipment were cleaned thoroughly between samples and that there was no contamination from one analysis to another ten blank samples were inserted in the series of rock samples. Of the elements analyzed, only gold had a recommended value and only three of the standard samples were analyzed for gold. The results are within the mean plus two standard deviations for this sample. Of the other elements of interest, the results for copper, lead, zinc and silver are very low, near background level and reported very consistently. We can acknowledge with a certain confidence that the results are within acceptable ranges and that there is little contamination from one sample with another.
The QA/QC program implemented was carried out appropriately and interpreted according to industry standards. Independent verification To verify independently the mineralization on the property at the Leyte Copper Project, D.A. Beauchamp had two rock samples independently analyzed by Loring Laboratories, a geochemical laboratory certified ISO 9001 that is located in Calgary Alberta. PMC-1 is a sample of massive sulphide from the Palanog area and PMC-2 is from the disseminated sulphides at the Palo area The two samples were analyzed for 30 elements by ICP (Inductively Coupled Plasma). PMC-1 reported more than the limit of 10,000 ppm Cu and was assayed to obtain an accurate value. Among the more significant results, PMC-1 reported 8.04% Cu, 2720 ppm Zn, 544 ppm Co, 16.9 ppm Ag and <1 ppb Au. PMC-2 reported 5590 ppm Cu (0.56% Cu) 546 ppm Zn, 166 ppm Co, 3.4 ppm Ag and <1 ppm Au. To verify the results PMC-2 was reanalyzed and gave similar results for all elements. These results are consistent with what was expected from these samples and show geochemical profiles that are characteristic of Cyprus-type mineralization. See Appendix 1 for the entire listing of results.. 15. Adjacent Properties
There are no known properties in the area that are currently being explored or over which applications for exploration permits have been requested at this time. 16. Mineral Processing and Metallurgical Testing
Not applicable to this property.
22 October 2009
page 66
17.
Mineral Resources and Mineral Reserve Estimates
Although some resource calculations have been made for a few areas on the property, these are not compliant with the standards of NI 43-101 and are therefore not reliable. 18. Other Relevant Data and Information
Not applicable to this property.
22 October 2009
page 67
19.
Interpretation and Conclusions
The Leyte Copper Project is underlain by an ophiolite suite that has been overlain by later metasedimentary rocks. The ophiolite suite has been sheared and structurally displaced. From the 1930s to the 1970s, the area was explored intermittently. The exploration consisted in prospecting and minor geological mapping, and a few basic ground geophysical surveys were carried out on select areas of the property. A few diamond drilling projects with X-Ray-size core were carried out but the drill logs and core are not available. Massive sulphides were extracted from a series of adits and pits and the ore was shipped directly from the property without processing to smelters. The outcrop exposure is generally poor in the region, and the terrain has undergone surface weathering that has been estimated at 10-20m. Since the massive sulphide mineralization often occurs along fractures and major shear zones these areas are more difficult to identify in the field. The terrain is relatively rugged and the forest cover, along with the weathering horizon, could severely decrease the effectiveness of geochemical surveys. The mineralization on the Leyte Copper Project exhibits many of the important characteristics of the Cyprus-Type copper deposits whose type deposit is located in Cyprus. Similar deposits have been discovered in older oceanic terrain in many areas including Newfoundland, Oregon, Iran and in the Pacific Ocean off the west coast of Mexico. These deposits contain mostly copper as an economic resource but also contain anomalous quantities of zinc and cobalt. The economic deposits are usually in range of a few million tonnes grading 1.6-2.5% Cu and they often occur in clusters (Cox and Singer, 1986).
22 October 2009
page 68
The objective of the work carried out by Philippine Metals Canada Philippines Inc. in 2009 was to re-sample and to confirm the mineralization and to develop a better understanding of the geology and the mineralization on the property. This objective has been achieved. The work was carried out competently and the results are reliable. The geology of the area and the work carried out in 2009 show that the Leyte Copper Project is a property of merit that deserves additional work to further explore its potential to host an orebody. 20. Recommendations
To further define and outline zones of massive sulphide mineralization on the Leyte Copper Project it is recommended that two activities be carried out simultaneously as part of Phase 1: a detailed evaluation of one of the corridors of mineralization evaluated in the 2009 field program consisting of geophysics, follow-up geological mapping and drilling, and an airborne geophysical survey over the entire Leyte Project area. Upon the return of positive results a Phase 2 program of additional drilling is recommended. Details of the recommended program are provided below. Phase 1 The area from Kambalantong to Malayahay contains several zones of sulphide mineralization that could be further defined and outlined by a ground EM and magnetometer survey. This corridor extends over a width of 500m and a strike length of about 1500m (Figure 16). New conductors hosting potential mineralization should be mapped and prospected. Diamond drilling is recommended on existing and new targets for a total of 2000m of drilling in ten holes to better understand and define the extent of the mineralization. The cost this part of the work is estimated at CA$427,000.
22 October 2009
page 69
Interpreted outline of zone of mineralization
12456'30"E
12456'00"E
Malayahay Tunnel 0.30 % Cu over 1.3 - 4.0m

Malayahay Malayahay Paglaum Adit Paglaum Adit
1115'00"N
Buen Suerte 2.08% Cu 40m long, 4-10m wide Don Amado Stope 0.21% Cu over 1.7m Ore stockpile 2.7 % Cu Don Amado 0.37% Cu over 2.4m Don Amado Cliff Area 2.86% Cu over 3m
Ro ad
Don Amado Don Amado Don Amado Don Amado Don Amado Don Amado Tunnels Tunnels Tunnels Tunnels Tunnels Tunnels
Buen Surte Surte Buen Surte Buen Surte Buen Surte Surte Tunnel Tunnel Tunnel Tunnel Tunnel Tunnel
Don Juan Tunnel Don Juan Tunnel Don Juan Tunnel Don Juan Tunnel Don Juan Tunnel Don Juan Tunnel
1114'30"N
Proposed Ground d Geophysical Grid

Kambalantong Kambalantong Mine Area Mine Area
Don Amado Zone P 0.66% Cu over 1.6m
Tra
100
100
200
300
400
Philippine Me etals Corporation

il
Metres Contour intervals are 20m
Proposed Ge eophysical Grid Kambalantong-M Malayahay Corridor

Once the approval of the Exploration Permits on the Suhi Projects has been received (EXPA 00059VIII and EXPA 000096-VIII), a helicopter-borne EM and magnetometer survey should be carried out over the entire Leyte Project area to explore the property at a line spacing of 100m for a total of about 1100 line kilometres at an estimated cost of CA$154 per line kilometre of survey plus the cost of the helicopter. The results of the survey should be further evaluated by an independent geophysicist to determine and prioritize anomalies on the property. The cost of this survey is estimated at CA$613,000. The total cost of Phase 1 is estimated at CA$1,040,000. Phase 2 Upon the return of positive and encouraging results from the Phase 1 geophysical surveys and drilling, a second round of drilling consisting of 4000m of drilling in 20 holes is recommended to further refine the zones of mineralization in the Kambalantong-Malayahay corridor and to evaluate the new targets that may have been identified in other parts of the property. The cost of Phase 2 drilling is estimated at CA$760,000. The total cost of Phase 1 and Phase 2 are budgeted at CA$1,800,000 and a summary of the estimated work and costs is presented in Table 6.
22 October 2009
page 71
Table6 ProposedBudgetLeyteCopperProject Phase1

GroundGeophysicalsurvey
Mobilization/Demobilization Linecuttingandchaining Magsurvey EMSurvey Subtotal $2,500 $3,000 $3,600 $8,800 $17,900 $7,500 $1,750 $1,250 $10,500 $30,000 $165 /m $330,000 $360,000 $55,000 1100 km@ $154 /m $169,400 135 hrs@ $2,400 /hr $324,000 $10,000 10% $558,400 $93,200 $1,040,000
GroundGeologicalsurvey
Trenching Mappingandsampling Rockanalyses Subtotal
DiamondDrilling
Mob/Demob Drilling Subtotal 2000 m@
AirborneGeophysicalSurvey
Mob/Demob Survey Helicopter Interpretation Subtotal Contingency Total
Phase2
DiamondDrilling
Mob/Demob Drilling Contingency Total 4000 m@ $30,000 $165 /m $660,000 10% $690,000 $70,000 $760,000
GrandTotalPhase1andPhase2
$1,800,000
22 October 2009
page 72
21.
References
Almogela, Dominador H. 1979: Electromagnetic Dip Angle (Shootback) Survey of Curajo Copper Prospect, Curajo Saba Basin, Palo Leyte. Internal report submitted to the Director of Mines, Manila. Balce, Cesar L. and Cabantog, Arnulfo U. 1998: Tacloban ophiolite massif Basement of northeast Leyte Physiographic Province. Mines and Geosciences Bureau Regional Office No. 8, Tacloban City, January 1998. Balce, Cesar L. and Velchez, Alfred Ryan R. 2001: Copper Deposits of Tacloban City: Revisited. Mines and Geosciences Bureau Regional Office No. 8, Nipa Hut Compound, Tacloban City. Constantinou, G. and Govett, J.G.S. 1973: Geology, Geochemistry and Genesis of Cyprus Sulfide Deposits. Economic Geology, v. 68, pp. 843-858. Cox, D.P. and Singer, D.A., Editors 1986: Mineral Deposit Models; U.S. Geological Survey, Bulletin 1693, 379 pages. Fortanos, Conrado and Fajando, Domingo P. 1964: Report on the Evaluation of the Copper Deposit at Barrio Caibaan, Tacloban City, Island of Leyte. Unpublished report. Francheteau, J. , Needham, H. D., Choukroune, P., , Juteau, T., Sguret, M, Ballard, R.D., Fox, P.J., Normark, W., Carranza, A., Cordoba, D., Guerrero, J., Ranguin, C., Bougault, H., Cambon, P., Hekinian, R. 1979: Massive deep-sea sulphide ore deposits discovered on the East Pacific Rise, Nature v. 277, No. 5697, February 1979. Franklin, J.M., Lydon, J.W. and Sangster, D.F. 1981: Volcanic-Associated Massive Sulphide Deposits; Economic Geology, 75th Anniversary Volume, p. 485-627. Gamus, Eleuterio and Lauron, Jovito 1968: Report on Copper Occurrences at Barrio Suhi, Tacloban City, for Leyte Base Metals. Internal report submitted to the Director of Mines, Manila.
22 October 2009
page 73
Hannington, Mark D., Galley, Alan G., Herzig, Peter M., and Petersen, Sven 1998: Comparison of the Tag Mound and Stockwork Complex with CyprusType Massive Sulfide Deposits; in Proceedings of the Ocean Drilling Program, Scientific Results, Vol. 158 Herzig, P.M., Humphris, S.E., Miller, D.J., and Zierenberg, R.A. (editors). Hy, Trygve 1995: Cyprus Massive Sulphide Cu (Zn), in Selected British Columbia Mineral Deposit Profiles, Volume 1 - Metallics and Coal, Lefebure, D.V. and Ray, G.E., Editors, British Columbia Ministry of Energy of Employment and Investment, Open File 1995-20, pages 51-52. Huliganga, Segismundo 1963: Report on the investigation of the Economic Possibilities of the Sulfur Deposits located at Barrio Caibibihan, Municipality of Caibiren, Biliran Island, Leyte. Internal unpublished report submitted to the Director of Mines, Manila. Kuhns, Roger J. and Baitis, Hart W. 1987: Preliminary Study of the Turner Albright Zn-Cu-Ag-Au-Co massive sulfide deposit, Josephine County, Oregon. Economic Geology v. 82, p. 1362-1676. Lueck, B. 2007a: Summary report on the geology of the Malitao Massive Sulphide Prospect, Municipality of Calanasan, Kalinga-Apayao Province, Northern Luzon , Philippines. Internal unpublished company report. 2007b: Summary report on the Taurus Massive Sulphide Project, EPA 0049, Region VIII. Internal unpublished company report.
Morante, Edgar M. and Gasano, Gorgonio B. 1981: A review on the Crone Dip Angle Electromagnetic Survey of the Curajo Prospect, Curajo, Palo Leyte. Internal report to the Director, Bureau of Mines and Geo-sciences, Metro-Manila. Morante, Edgar M. and Ignacio, Romeo J. 1979: Electromagnetic Dip Angle (Shootback) of Curajo Copper Prospect, Curajo, Palo Leyte. Internal report to the Director, Bureau of Mines and Geo-sciences, Metro-Manila. Motton, N.T. & Associates 2008: Dilong Project, Abra/Ilocos Sur Provinces, Luzon, Philippines: A summary of the history and exploration potential of the area; Internal company report.
22 October 2009
page 74
New Meridian Mining Corp. 2009a: New Meridian enters into letter of intent to purchase all of the shares of Philippine Metals Corp. Press release 28 May 2009. http:\\www.sedar.com; accessed October 1, 2009. 2009b: New Meridian further defines the letter of intent to purchase all of the shares of Philippine Metals Corp. Press release 29 July 2009. http:\\www.sedar.com; accessed October 1, 2009.
Paderes, Armando E. 1970: Mineral verification and geological appraisal of the Taurus copper claims at Barrios Palanog and Salvacion, Tacloban City in Connection with their application for listing in the stock market. Geology, Bureau of Mines, Regional office VIII, Tacloban City. 1972: Memorandum for the director, thru the Chief geologist, Bureau of Mines, Manila. Internal report submitted to the Director of Mines, Manila. Paloma, Reinhold-Bobby M. and Garcia, J.S. 2009: Final Report for Leyte Copper Project (EP- 2009-0008-VIII) Fast Track Exploration Program (FTEP); internal company report to Philippine Metals Corporation.
Pearce , J. A., Lippard, S. J. and Roberts, S. 1984: Characteristics and tectonic significance of supra-subduction zone ophiolites. Geological Society, London, Special Publications; 1984; v. 16; p. 77-94 Prichard, H.M. and Maliotis, G. 1998: Gold mineralization associated with low-temperature, off-axis, fluid activity in the Troodos ophiolite, Cyprus. Journal of the Geological Society; April 1998; v. 155; no. 2; p. 223-231 Quiwa, N.D., Javelosa, R.S., Danaynghirang, C.D., Jimenez, G.D.J. 1978: Semi-annual report on the detailed geological and geochemical survey of the copper prospects situated within the territorial jurisdiction of SAB-A Basin, Tacloban City, Northern Leyte; internal government report. Sangster, A.L. 1988: Mineral occurrences of the Betts Cove Complex Baie Verte Peninsula, Newfoundland, Geological Survey of Canada; online paper http://cgc.rncan.gc.ca/mindep/metallogeny/gold/baieverte/pdf/metallog eny.gold.baie_verte.sangster.pdf accessed 2009.09.01.
22 October 2009
page 75
Singer, D.A. 1968: Descriptive Model of Cyprus Massive Sulfide, Model 24a in Cox, D.P. and Singer, D.A., (Editors), Mineral Deposit Models; U.S. Geological Survey, Bulletin 1693, p. 131-135. Solkoski, Lawrence 1997: Property Examination of the Suhi Copper Prospect, Leyte Island Region VIII, Philippines. Copper Gold Silver. Unpublished report. Upadhyay H. D. and Strong D. F. 1973: Geological Setting of the Betts Cove Copper Deposits, Newfoundland: An Example of Ophiolite Sulfide Mineralization. Economic Geology v.68, pp. 161-167. Zerda, Rafael R. 1974: Report on the Verification and Geological Appraisal of the Leyte Base Metal Copper Claims at Barrio Suhi, Tacloban City in connection with their application for Licensing and Listing in the Securities Exchange Commission. Report for the Director, thru the Chief geologist, Bureau of Mines, Manila. Internal report submitted to the Director of Mines, Manila. Dated in Calgary AB, this 22nd of October 2009,
______________________________ Daniel A. Beauchamp, P.Geol., M.B.A. 24 Malibou Road SW Calgary AB T2V 1W6
______________________________ Bill Dynes, P.Geol. Sierra Geological Corp. 2749 Douglasdale Blvd. SE Calgary AB T2Z 2A4
22 October 2009
page 76
22. Date and Signature Page
I, Daniel A. Beauchamp of 24 Malibou Road SW, Calgary, AB, hereby certify that: 1. 2. 3. 4. I am an independent consulting geologist; I graduated from the University of Ottawa in 1974 with an Honours B.Sc. from the University of Ottawa; I graduated from the University of Calgary in 1984 with a M.B.A. (Masters in Business Administration) with specialization in finance; I have been a registered member of the Association of Professional Engineers Geologists and Geophysicists of Alberta (APEGGA) since 1980 and my membership number is M29299; Except for two years of post-graduate studies and two years of work in the oil and gas industry I have practiced my profession as a geologist since graduation from university in 1974 with companies, both as an employee and as a consultant. I have worked throughout Canada and have managed mineral exploration projects from the grass roots level to early stages of mine development; I have worked as a geologist directing and managing projects in the field in many geological environments including volcanogenic massive sulphides in rocks of Archean to Phanerozoic age carrying out geological mapping, supervising geochemical and geophysical surveys, diamond drilling programs and core logging. I have read the definition of Qualified Person set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association and past relevant work experience, I fulfill the requirements to be a Qualified Person for the purposes of NI 43-101; I personally examined and studied the literature, reports and company surveys on the property for Philippine Metals Corporation and I am familiar with the project area. I visited the property on May 25 and 26, 2009; I have had no prior involvement with the property that is the subject of this Technical Report; I am not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the Technical Report, the omission to disclose which would make the Technical Report misleading; I am independent of the issuer applying all of the tests in section 1.4 of National Instrument 43-101. I do not own, directly or indirectly, nor am I under an agreement, arrangement or understanding or expect to acquire any securities of Philippine Metals Corporation or any affiliated entity of the
page 77
5.
6.
7.
8.
9. 10.
11.
22 October 2009
Company. I hold no interest, directly or indirectly, in the mineral properties that are the subject of the foregoing report or in any adjacent mineral properties in the area; 12. 13. I have read the National Instrument 43-101 and Form 43-101F and this report has been prepared in accordance with these regulations; I consent to the filing of the Technical Report with any Stock Exchange and other regulatory authority and any publication by them for regulatory purposes, including electronic publication in the public company files on their websites accessible by the public. I am responsible for all sections of the report titled Technical Report and Proposed Exploration Program for the Leyte Copper Project, Leyte Province, Philippines, prepared for Philippine Metals Corporation Calgary AB, and New Meridian Mining Corp. Calgary AB, and dated 22 October 2009.
14.
Dated in Calgary, AB, this 22nd day of October 2009,
______________________________ Daniel A. Beauchamp, P.Geol., M.B.A. 24 Malibou Road SW Calgary AB T2V 1W6
22 October 2009
page 78
Date and Signature Page I, Bill Dynes, of Sierra Geological Corp., 2749 Douglasdale Blvd. SE Calgary, AB, hereby certify that: 1. 2. 3. I am a geologist consulting for Philippines Metals Corp. I graduated from the University of British Columbia in 1994 with an Honours B.Sc. degree in geology. I have been a registered member of the Association of Professional Engineers Geologists and Geophysicists of Alberta (APEGGA) since 2005 and my membership number is M80402. I have practiced my profession as a mineral exploration geologist since graduation from university in 1994 with various companies, both as an employee and as a consultant. I have worked in Canada, Philippines, Tanzania, Indonesia and Mexico. I have read the definition of Qualified Person set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association and past relevant work experience, I fulfill the requirements to be a Qualified Person for the purposes of NI 43-101. I visited the Leyte Copper Project property area on December 1st and 2nd 2007. I am not independent of the project and its corporate entities. I am a director of New Meridian Mining Corp that is currently in negotiations with Philippine Metals Corp concerning a merger of the two companies as described in the news release dated May 28, 2009. I am not aware of any material fact or material change with respect to the subject matter of this Technical Report that is not reflected in the same, or of any omission to disclose that which would make this Technical Report misleading. I have read the National Instrument 43-101 and Form 43-101F and this report has been prepared in accordance with these regulations. I consent to the filing of this Technical Report with any Stock Exchange and other regulatory authority and any publication by them for regulatory purposes, including electronic publication in the public company files on their websites accessible by the public. I am responsible for the quality of the work conducted in 2009 on the Leyte Copper Project as described in section 10 of this report titled Technical Report and Proposed Exploration Program for the Leyte Copper Project, Leyte Province, Philippines, prepared for Philippine Metals Corporation Calgary AB, and New Meridian Mining Corp. Calgary AB, and dated 22 October 2009.
page 79
4.
5.
6. 7.
8.
9. 10.
11.
22 October 2009
Dated in Calgary, AB, this 22nd day of October 2009,
______________________________ Bill Dynes, P.Geol. Sierra Geological Corp. 2749 Douglasdale Blvd. SE Calgary AB T2Z
22 October 2009
page 80
Appendix 1 Verification Analyses
22 October 2009
page 81
Loring Laboratories Ltd.

629 Beaverdam Road N.E., Calgary Alberta T2K 4W7 Tel: 274-2777 Fax: 275-0541 loringlabs@telus.net
ISO9001:2008 Certified
TO:
Daniel Beauchamp FILE: 5 2 1 1 9
DATE: September. 15, 2009
30 ELEMENT ICP ANALYSIS

Sample No. Ag ppm Al % As Au B Ba Bi ppm ppb ppm ppm ppm Ca % Cd Co ppm ppm Cr ppm Cu ppm Fe % K % La ppm Mg % Mn ppm Mo ppm Na % Ni ppm P % Pb Sb Sr ppm ppm ppm Th ppm Ti % U ppm V W ppm ppm Zn ppm
PMC-1 PMC-2 PMC-2 check blk
16.9 3.4 3.0 <0.5
0.08 0.21 0.26 <0.01
19 <1 <1 <1
<1 <1 <1 <1
3 <1 2 <1
6 4 4 <1
<1 <1 <1 <1
1.58 0.72 0.79 <0.01
27 24 24 <1
544 166 170 <1
<1 6 13 <1
>10000 5590 5560 <1
>10 >10 >10 <0.01
<0.01 <0.01 <0.01 <0.01
22 15 17 <1
0.02 0.13 0.14 <0.01
287 115 116 <1
9 5 5 <1
0.05 <0.01 <0.01 <0.01
25 31 35 <1
<0.01 <0.01 <0.01 <0.01
72 37 39 <1
35 6 4 <1
<1 <1 <1 <1
<1 <1 <1 <1
<0.01 <0.01 0.01 <0.01
<1 <1 <1 <1
3 7 8 <1
<1 <1 <1 <1
2720 546 574 <1
0.500 Gram sample is digested with Aqua Regia at 95 C for one hour and bulked to 10 ml with distilled water. Partial dissolution for Al, B, Ba, Ca, Cr, Fe, K, La, Mg, Mn, Na, P, Sr, Ti, and W. Certified by:
Loring Laboratories Ltd.

629 Beaverdam Road N.E., Calgary Alberta T2K 4W7 Tel: 274-2777 Fax: 275-0541 loringlabs@telus.net
ISO9001:2008 Certifie
TO: Daniel Beauchamp Tel: 403-259-6734
FILE: 5 2 1 1 9
DATE: September. 17,
Certificate of Assay
No. "Assay Analysis" PMC-1 8.04 Cu %
Methodology:
0.5 gram Assay, with AA finish
I HEREBY CERTIFY that the above results are those assays made by me upon the herein described samples:
Assayer

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Technical Report and Proposed Exploration Program

Leyte Copper Project Leyte Province, Philippines

Philippine Metals Corporation

New Meridian Mining Corp.

Longitude: Latitude: Region: Province: Date:

1245618 E 1114'42 N Eastern Visayas Leyte 22 October 2009

Technical Report: Leyte Copper Project Philippines

10. Exploration ............................................................................................ 48

Technical Report: Leyte Copper Project Philippines

Technical Report: Leyte Copper Project Philippines

Technical Report: Leyte Copper Project Philippines

Technical Report: Leyte Copper Project Philippines

Technical Report: Leyte Copper Project Philippines

Technical Report: Leyte Copper Project Philippines

Technical Report: Leyte Copper Project Philippines

Table 1 Mineral rights in the Philippines

ExplorationPermit FinancialTechnicalAssistanceAgreement MineralProductionSharingAgreement(MPSA) JointVentureAgreement(JVA) CoProductionnAgreement(CPA)

Technical Report: Leyte Copper Project Philippines

Technical Report: Leyte Copper Project Philippines

Technical Report: Leyte Copper Project Philippines

Technical Report: Leyte Copper Project Philippines

Malitao Project Malitao Project Dilong Project Dilong Project

Technical Report: Leyte Copper Project Philippines

Taurus0049 Suhi0059 Suhi0096 North Central South

3606.50 ha 3606.50 ha 5031.44 ha 5031.44 ha 503.13 ha 419.35 ha 335.52 ha 1258.00 ha 9895.94 ha

Taguite BABATNGON Bagahupi

Taurus Taurus 0049 0049 Project Project

Philippine Met tals Corporation UAN TANAU Property Lo ocation Map

8. Cabalawan-Barrio Suhi 8. Cabalawan-Barrio Suhi

4. Malayahay 4. Malayahay 3. Palanog - Kambalantong 3. Palanog - Kambalantong

2. Salvacion 2. Salvacion 6. Caibaan 6. Caibaan

1. Palo - Curajo 1. Palo - Curajo

Philippine Meta Corporation als Zones of Mi ineralization

Technical Report: Leyte Copper Project Philippines

Technical Report: Leyte Copper Project Philippines

Technical Report: Leyte Copper Project Philippines

Access, Climate, Resources, Infrastructure and Physiography

Technical Report: Leyte Copper Project Philippines

Bridge to Bridge to Samar Island Samar Island

8. Cabalawan-Barrio Suhi 8. Cabalawan-Barrio Suhi

4. Malayahay 4. Malayahay 3. Palanog - Kambalantong 3. Palanog - Kambalantong

Tacloban Tacloban City City

2. Salvacion 2. Salvacion 6. Caibaan 6. Caibaan

1. Palo - Curajo 1. Palo - Curajo

Philippine Meta Corporation als Road and Trail Access

Technical Report: Leyte Copper Project Philippines

Technical Report: Leyte Copper Project Philippines

Leyte Island Samar Island

8. Cabalawan-Barrio Suhi 8. Cabalawan-Barrio Suhi

4. Malayahay 4. Malayahay 3. Palanog - Kambalantong 3. Palanog - Kambalantong

2. Salvacion 2. Salvacion 6. Caibaan 6. Caibaan

1. Palo - Curajo 1. Palo - Curajo

Philippine Meta Corporation als Topog graphy

Technical Report: Leyte Copper Project Philippines

Technical Report: Leyte Copper Project Philippines

Technical Report: Leyte Copper Project Philippines

Technical Report: Leyte Copper Project Philippines

Technical Report: Leyte Copper Project Philippines

Malitao Project Malitao Project

Dilong Project Dilong Project

tt ulll u u u ulll u ulll u u Fa Fa Fa Fa Fa Fa Fa Fa Fa

Fau Fau lltt

Leyte Copper Leyte Copper Project Project