Project

The Batero-Quinchia Project is located within the Municipality of Quinchia, Department of Risaralda, Republic of Colombia, approximately 55 kilometres to the north of the regional capital, Pereira. The property consists of a 1,407.43 hectare tenement and is supported with full infrastructure including roads, water and power.  Three historic Miocene intrusive centers have been identified, spaced out over a 3km north-south strike length trend, and are at elevations between 1,600m and 1,950m. The Municipality of Quinchia is recognized as a stable and secure social and political environment.

Batero is evaluating a high grade development opportunity at La Cumbre porphyry deposit in the southern area of the Quinchia project

Batero Gold has a 100% interest in the Quinchia gold project located within the Middle Cauca Belt in Colombia.  The Quinchia project is host to 3.5 million ounces of gold in the indicated resource category ( 248.5 million tonnes averaging 0.44 g/t gold ) and 2.6 million ounce of gold in the inferred mineral resource category ( 242.4 million tonnes averaging 0.33 g/t gold ) as reported in the initial mineral resource estimate reported in February 2012 (see Quinchia mineral resource estimate). 

La Cumbre porphyry deposit, in the southern area of the Project, contains a majority of the near surface high grade mineral resources and will be the focus for growth in 2012.  Quinchia has further exploration potential as more than 70% of the Quinchia project is unexplored.

Large Continuous Zones of Mineralization at La Cumbre

Significant zones of higher grade gold mineralization, at a 0.5 g/t cut off, exist within a Whittle pit reported in the initial mineral resource estimate in February 2012 (see Quinchia mineral resource estimate):

• 1.9 million ounces of gold are contained in 81 million tonnes of indicated resources with an average grade of 0.72 g/t gold
• 700,000 ounces of gold are contained in 32 million tonnes of inferred resources with an average grade of 0.66 g/t gold. 

Significant zones of high grade mineralization occur as large, continuous bodies throughout the mineral resources at La Cumbre and may be open along a NW-SE corridor at surface where the trend of mineralization may extend beyond the current mineral resources.

In addition, the Amarilla Structural Corridor, hosting epithermal mineralization, has been identified adjacent to La Cumbre deposit and will be evaluated to determine its impact on overall gold ounces in an updated mineral resource estimate.

Oxide Mineralization at La Cumbre

Oxide mineral resource estimate represents approximately 10% of the current indicated and inferred resources (see Quinchia mineral resource estimate) and will be studied to determine the amenability to heap leach mineral processing.  At La Cumbre, zones of higher grade oxide mineralization, including a drill hole grading over 1 g/t gold near surface, may be open beyond the limit of drill testing.  Areas of oxide mineralization adjacent to La Cumbre will be investigate to determine if they can be modeled into the oxide portion of the oxide resource estimate.

Planned Work Program

Batero will evaluate the large, continuous zones of high grade mineralization outlined at La Cumbre deposit and that may extend beyon the limit of drill testing.  The Company will also further evaluate the near surface oxidized mineralization at La Cumbre to determine the amenability to heap leach mineral processing.  A work program is planned including a drill program, metallurgical test work and an updated mineral resource estimate within a Preliminary Economic Assessment for La Cumbre.