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MULTINATIONAL ANDEAN PROJECT

Canadian International Development Agency

Arrangement: 24846
RC/Project: 540/20080
Commitment: 189086

Supplier: G41000



REPORT #5

























1997/98 Second Quarter Activity Report

Second Quarter Financial Report 1997/98

Revised Third and Fourth Quarter Forecast 1997/98



Geological Survey of Canada, Pacific Division (GSC)

Vancouver, Canada

Servicio Geol?gico Minero Argentino (SEGEMAR)

Buenos Aires, Argentina

Servicio Nacional de Geolog?a y Miner?a (SERGEOMIN)

La Paz, Bolivia

Servicio Nacional de Geolog?a y Miner?a (SERNAGEOMIN)

Santiago de Chile, Chile

Instituto Geol?gico Minero y Metal?rgico (INGEMMET)

Lima, Peru

September 30, 1997



Prepared by:

Dr. C.J. Hickson, P.Geo. and Mr. M. Ellerbeck

Geological Survey of Canada

Pacific Division, Vancouver Office

101-605 Robson Street, Vancouver

British Columbia, Canada V6B 5J3

Tel.: (604) 666-0183 Fax: (604) 666-7507

Email:

WEB Page: www.rodus.com/gsc

Table of Contents





Report Summary 3

Accomplishments 3

Management Challenges 4

Information Needs from Participating Countries 5



Planned Activities, April 1, 1997 - March 31, 1998 6

Purpose A 6

Purpose B 13

Purpose C 14

Purpose D 15





Project Management 28



Tables

Revised Detailed Budget Table to March 31, 1998 30

Quarterly Forecast and Request for Funds 33

Equipment to be Procured to March 31, 1998 34

Revised Calendar of Activities for 1997/98 Fiscal Year 35



Annex A: Second Quarter Detailed Financial Report

Argentina

Bolivia

Chile

Peru

Multi

Report Totals



Annex B: Minutes of the Executive Council Meeting - Arequipa, Peru

Annex C: Arequipa Accords

Annex D: Verifiable Indicators - Questionnaire

Report Summary



This document reports on the activities that took place during the second quarter of the 1997/98 fiscal year (July 1-September 30) and gives a summary of the work plans for 1997/98 fiscal year for the Multinational Andean Project (MAP). No field visits of technical staff took place to Peru, Chile and Bolivia but Dr. D. Teskey visited Argentina to work with SEGEMAR staff to help finalize plans for the Puna Austral airborne geophysical survey (radiometric and aeromagnetic data to be collected) which will be flown during the third quarter. The contract for this $800,000.00 geophysical survey was awarded in late September to SIAL Geophysics. Nine private sector mining companies are participating at a minimum cost of $50,000.00 each.

All equipment purchased in the last fiscal year was finally shipped from Canada early in the quarter. However, despite contracting a professional shipping company to prepare documents, secure appropriate permits and work with the Canadian Embassy in the respective countries, each country had difficulty extracting the equipment from customs.

At the end of this quarter the Executive Council met in Arequipa, Peru (September 20-21) in conjunction with the Mines Ministries of the Americas' Meeting and the XXII Bi-annual meeting of INTEMIN. Three accords were signed between MAP members as part of this meeting to deliver joint geoscience products. It was agreed that a Geological/Metallogenic map of the border regions of Chile, Bolivia and Argentina north of 34o (1:1,000,000) would be prepared for presentation at the International Geological Congress in Rio de Janeiro, Brazil in the year 2000.



Start: Aug. 1996 Finish: fiscal year 2000/2001 (Dec. 31/2000) Cost limitation: CDN$4,800,000.00



Accomplishments



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Management Challenges



The cancellation of the volcanology short course scheduled for late June in the first quarter (after expenditure of some funds) highlights one of the continuing management challenges of this project. Varying field schedules and needs in each of the countries make it is very difficult to choose times for joint events that are mutually agreeable and can be adhered to. For the short course, changes in the field schedule of the Peruvians and funding pressures for the Bolivians resulted in them being unable to participate. This same problem, and variations of it, confronted the Mineral Deposits field trip planned for October/November. Planned field work by the Argentinean survey and other commitments by them meant that they are unable to send their best candidates, an unfortunate but apparently unavoidable state of affairs. The other participants felt the trip was too long. The trip has been reformulated and will be run as two separate trips (Peru-Chile in 1997 and Argentina-Bolivia in October/November 1998.)

The difficulty of scheduling short courses or other types of training was addressed at the Executive Council meeting. It was generally agreed that much more effort must be put into coordinating the technical work and planning as far in advance as possible. It was also pointed out that the countries must make their needs known as to the type of training or technical expertise required so that the most appropriate person or person(s) can be found. The relative merits of short courses, field trips and colleague to colleague interaction was discussed and it was agreed that each country will have different needs. Workshop or field trips provide excellent training opportunities for some aspects of geoscience, but nothing can replace hands-on work in the field doing routine mapping or follow-up on structural or stratigraphic problems with the field geologists. The opportunity for Canadian geologists to be involved in routine field work may provide the best and longest lasting enhancement of the geoscience skills of the geologists in all of the countries. From a management point of view the better the countries can define their training needs and expectations for technical expertise the easier it will be manage the project.

In addition to problems in timing and definition of personnel for training, lack of internal funds limits full participation by some of the countries. Funds must be available within the budgets of the participating countries to ensure that their geologists can participate in the activities of the project. Multi-year plans have been drawn up by the participants in order for them to approach their senior management for project funds in advance of the planned activities. Training planned to take place in Canada must also have the appropriate funding and permissions in place to ensure that the budgeted level of participation is met. Technical visits are also being limited by lack of funding for in-country expenses of visiting experts. This is unfortunate and will limit the amount and impact of training and collaborative work possible during the project. Adequate advance planning is also necessary.

The low numbers of samples submitted and timeliness for submission also makes budgeting difficult. This, coupled with the reduced requests for technical expertise and scheduling problems, means the project is consistently under budget. There is little likelihood at the present rate of expenditure that all of the funds will be exhausted by December 31, 2000. This state of affairs presents continuing management problems. It also represents a problem in the procurement of equipment. As equipment expenditure must be 10% or less there is a possibility that this ratio will be in jeopardy. If the countries do not see significant changes in their expenditures profiles (not already budgeted for) we would strongly recommend that the countries make a request to CIDA that the project be extended one more fiscal year and the existing budget be re-profiled, reducing the forecast yearly expenditures.



Management Recommendations:

Information Needs from Participating Countries



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Planned Activities, April 1, 1997 - March 31, 1998



As set out in the Logical Framework presented in Report #1, the project focuses on four purposes (given as A, B, C and D). These are given below and the activities planned to fulfil each of the purposes outlined. Activities started in the 1996/97 fiscal year are denoted as A.96 and, those started in fiscal year 1997/98 are prefixed by "97". Activities are further indicated by country using a letter: Argentina "A", Bolivia "B", Chile "C", Peru "P" and activities on behalf of all countries by an "M". Activities are numbered consecutively from the year of initiation.

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Purpose A



Activity # Summary of Activities Country Budget Budget by Purpose
A Geological work leading to more compatible geoscience data within the four National Geoscience Surveys. $183,401
Budget Change - 48116 $135285


Details by Activities



A.96/A-1 Training in TM imaging and structural/alteration interpretation of imaging, alteration zones, digital data capture (Field log) Argentina

$14,500

ongoing Budget change (October 1, 1997) no change $14,500



This activity will enhance the ability of SEGEMAR for using satellite image (remote sensing) analysisto map geologic structure and zones of alteration. The activity will build on the expertise gained in 1996/97 using ER Mapper followed up with field work. In this fiscal year activities will include training under the GLOBESar II project on PCI software, using images acquired under MAP. This is training that is also being made available to the Bolivians and Peruvians. In this fiscal year emphasis will be placed on database structures and training in "FieldLog" to a help standardize data acquisition within each country and between the countries. Initially emphasis will be placed on using FieldLog to standardize data input. FieldLog will assist the Argentineans in digital capture of data while in the field and assist in producing maps using CAD software. This work will facilitate the rapid output of field maps upon completion of field work. These products are similar to those used to produce products within one month of field work and reported on in the GSC's Current Research series.





First Quarter action items:

Second Quarter action items:

Third Quarter action items:

A.96/A-2 In-field training in regional mapping techniques, volcanology, and metallogeny Argentina $42,500
ongoing Budget change (October 1, 1997) -11,300 $31,200


This activity will enhance the ability of SEGEMAR in the interpretation of complex structure, volcanic stratigraphy and alteration. The in-field training done by Drs. Evenchick and Panteleyev in 1996/97 will be followed-up by field work done in this fiscal year by Panteleyev and a volcanological specialist. As a prelude to the field work focusing on volcanic stratigraphy a short course in geochemistry, stratigraphy, and petrology will be given at the University of British Columbia, June 9-22. This activity is closely linked to activity A.1 that will assist the Argentinean's in learning various aspects of digital capture of data in the field.



First Quarter Action Items:

Second Quarter Action Items:

Third Quarter Action Items:

A.96/B-3 Training in volcanology & regional course including training in G.P.S. site survey techniques, metallogenic studies Bolivia

$33,385

complete Budget change (October 1, 1997) -19,684 $13,701



The Bolivians are commencing work on the Western Cordillera (Cordillera Occidental). This is a region of highly prospective mineralization that is as yet poorly understood and studied. This initial work will assist the Bolivians in upgrading their field skills in regional mapping in volcanic terrain. Dr. Glenn Woodsworth will be assisting the Bolivians in beginning the task of addressing the tectonic and metallogenic significance of volcanism in the Cordillera Occidental. This field work will be followed by a short course in volcanic stratigraphy, geochemistry and petrology at the University of British Columbia, June 9-22.



First Quarter Action Items:

Second Quarter Action Items:

Third Quarter Action Items:

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A.97/B-1 Training in digital data capture in the field (FieldLog) and PC based GIS for map production Bolivia

$16,000

ongoing Budget change (October 1, 1997) +1,500 $17,500



This activity will enhance the ability of SERGEOMIN to capture digital data in the field and standardize their data. In this fiscal year emphasis will be placed on database structures and training in FieldLog to help standardize data acquisition within each country and between the countries. FieldLog will assist the Bolivians in digital capture of data while in the field and assist in producing maps using an AutoCAD like or compatible programs (MapInfo/Vertical Mapper). This work will facilitate the rapid output of field maps upon completion of field work. These products are the same or similar to those used to produce products within one month of field work and reported on in the GSC's Current Research series.



First Quarter Action Items:

Second Quarter Action Items:

Third Quarter Action Items:

A.97/C-2 Field digital data capture (FieldLog) and PC based GIS for map production Chile

$16,000

ongoing Budget change (October 1, 1997) +4,000 $20,000



This activity will enhance the ability of SERNAGEOMIN to capture digital data in the field and standardize their data. In this fiscal year emphasis will be placed on database structures and training in FieldLog to help standardize data acquisition within each country and between the countries. FieldLog will assist the Chileans in digital capture of data while in the field and assist in producing maps using CAD software (MapInfo/Vertical Mapper). This work will facilitate the rapid output of field maps upon completion of field work. These products are the same or similar to those used to produce products within one month of field work and reported on in the GSC's Current Research series.



First Quarter Action Items:

Second Quarter Action Items:

Third Quarter Action Items:

A.97/C-3 Fission track studies to determine uplift and denudation and its relation to supergene processes Chile

$10,076

ongoing Budget change (October 1, 1997) no change $10,076



Uplift of the Andean Mountains is a significant event, not only in terms of the impact on physiography but also from the view point of mineralization and denudation. The structures on which uplift occurs may also be the loci of ore forming fluids, serving to focus deposits as has been found in southern Chile. The erosion of the mountain belts is significant in revealing mineral resources that would otherwise be too deeply buried to extract profitably. By determining uplift rates, locus of uplift (faults), and separating blocks that may have been uplifted as a unit, mineral exploration can be more carefully focused to those areas which are most favourable in terms of denudation and appropriate structures.



First Quarter Action Items:

Third Quarter Action Items:

A.97/C-4 Training in petrography, petrogenesis, geochemistry, volcanic stratigraphy and mapping, field applications Chile

$14,500

cancelled Budget change (October 1, 1997) -14,500 $0



A short course in volcanic stratigraphy, geochemistry and petrology will be given at the University of British Columbia, June 9-22. Participation in this course will enhance the volcanological expertise of junior staff members of SERNAGEOMIN.

First Quarter Action Items:

Second Quarter Action Items:

Third Quarter Action Items:

A.96/P-4 Training in Palaeozoic stratigraphy and regional mapping Peru

$18,440

complete Budget change (October 1, 1997) -632 $17,808



Accurate and systematic geological mapping requires experience and ability to be able to unravel the stratigraphy in structurally complex and sometimes poorly exposed regions. Additionally the production of high quality regional maps requires accurate data (radiometric and fossil dating) for stratigraphic analyses and interpretation. Under this activity the one week visit of Dr. Steve Gordey in March, 1997 will be built upon by working in the field with Peruvian geologists. By participating in the field studies, Dr. Gordey will be better able to:

1. Assess the maps produced to date and evaluate the types of expertise needed for the future.

2. Discuss the needs for Palaeontologic investigations and input into map products.

3. Evaluate the requirements for radiometric control for mapping and input into future mapping and interpretations.

4. Make recommendations for future field work and assist in the focusing of future field work in areas where maximum understanding of structure can be gained.

This work will assist INGEMMET in producing better maps that will assist the exploration community in focusing their exploration targets.



First Quarter Action Items:

Second Quarter Action Items:

Third Quarter Action Items:

A.97/P-5 Training in TM imaging and structural/alteration interpretation of imaging, alteration zones, digital data capture (FieldLog) Peru

$7,000

ongoing Budget change (October 1, 1997) +3,500 $10,500



This activity will enhance the ability of INGEMMET to capture digital data in the field and standardize their data. In this fiscal year emphasis will be placed on database structures and training in FieldLog to a help standardize data acquisition within each country and between the countries. FieldLog will assist the Peruvian's in digital capture of data while in the field and assist in producing maps using CAD saoftware (MapInfo/Vertical Mapper). This work will facilitate the rapid output of field maps upon completion of field work. These products are the same or similar to those used to produce products within one month of field work and reported on in the GSC's Current Research series.



First Quarter Action Items:

Second Quarter Action Items:

Third Quarter Action Items:

A.97/P-6 Training in petrography, petrogenesis, geochemistry, volcanic stratigraphy and mapping, field applications Peru

$14,500

cancelled Budget change (October 1, 1997) -14,500 $0



A short course in volcanic stratigraphy, geochemistry and petrology will be given at the University of British Columbia, June 9-22. Participation in this course will enhance the volcanological expertise of staff members of INGEMMET and result in better, more complete understanding of volcanic strata that will result in higher quality map interpretations.



First Quarter Action Items:

Second Quarter Action Items:

Third Quater Action Items:

Purpose B



Activity # Summary of Activities Country Budget Budget by Purpose
B Increase cooperation between Geoscience institutions in all five countries (Horizontal Integration) $71,170
Budget Change - 20,000 $51,170




B.96/M.1 Collaboration on display and participation at Joint meeting of Society of Economic Geologist's (SEG) and Cordilleran Roundup Conference to exchange ideas between project countries and increase exposure of project and project participants to Canadian mining and exploration sector, January 27-31, 1998 all

$20,170

ongoing Budget change (October 1, 1997) no change $20,170



This activity will bring all the countries together to discuss problems of mutual concern. The joint SEG/Roundup meeting will provide an unparalleled opportunity for the countries to advertise the project and make contact with the international mining and exploration community. This community is especially interested in any metallogenic compilations or interpretations which may result from this project.



Third Quarter Action Items:

B.96/M.2 Discussions in Regional Metallogeny and Project goals relative to Regional synthesis and future project goals all

$0

no activity Budget change (October 1, 1997) no change $0



Metallogenic aspects of the project and production of products such as maps are the prime concern of the target client group - the mineral exploration community. These products and the project must continue to be reviewed to ensure that needs of this community are met in order to fulfill the project objects.



B.97/M.1 Mineral Deposits Field trip through portions of the four participating countries (October/November) all

$51,000

ongoing Budget change (October 1, 1997) -20,000 $31,000



Metallogenic aspects of the project are the prime concern of the target client group - the mineral exploration community. This field trip will bring project geologists from each of the participating countries together to investigate known mineral deposits. By studying deposits of known type, in well understood geological settings, enhanced understanding of ore forming processes will be gained. The lessons learned at these deposits can be used to better understand similar deposits within the project areas. This work can greatly enhance the ability of the geologists to put similar deposits in their own field areas into regional context assisting in enhancing the overall understanding of the spatial and temporal position of ore deposits.



First Quater Action Items:

Second Quater Action Items:

Third Quater Action Items:

Purpose C



Activity # Summary of Activities Country Budget Budget by Purpose
C Enhance institutional relationships with Private Sector (mineral exploration and mining companies). $14,500
Budget Change no change $14,500
C.96/M-1 Send "News Release" of project commencement to Private Sector Companies all

$3,500

C.96/M-2 Send translated copy of Minister's National Industrial Advisory Committee (MNIAC) terms of reference all

$500

C.97/M-1 Technical Liaison Committee with Industry Representatives. all

$10,500



Purpose C is to enhance the institutional relationships of the National Geoscience Institutes with the Private Sector. During this year this will be facilitated by sending out a short New Release, giving details of the Multinational Andean Project to a select list of private sector companies. The Project Administrator will work with the Project Leaders in each of the countries to obtain a list of appropriate companies to which the news release will be sent. In order to help the countries understand Canadian practices in terms of our relationship with the private sector we will translate and make available to them copies of the terms of reference for the "Ministers National Industrial Advisory Committee" (MNIAC), the Pacific Division's "Co-Op Committee", and the Provincial Geological Survey's "Technical Liaison Committee" terms of reference. These terms of references outline the interaction and relationship between the Geological Survey of Canada and the private sector. They represent models upon which the National Geoscience Institutes may wish to formulate their own committees and upon which the MAP technical advisors (three members from the private sector) will operate.



First Quarter Action Items:

Second Quarter Action Items:

Third Quarter Action Items:

Purpose D



Activity # Summary of Activities Country Budget Budget by Purpose
D Institutional strengthening. $814,575
Budget Change +2,335 $816,910


Details by Activities



D.96/A-1 Geochemical Exploration techniques, sample handling and data analysis Argentina

$100,900

ongoing Budget change (October 1, 1997) no change $100,900



The Argentinean Survey plans to re-analyse samples which were collected in the past under other projects. These samples were originally analysed for a very limited range of elements. The intent of re-analysis is to produce a larger suite of elements more pertinent to needs of today's exploration community. This type of data is especially important to mineral exploration companies as it assists them in targeting exploration activity. When the analyses are complete, it is expected that a short course in the interpretation of regional geochemical analyses will be given. In addition, under this activity, the Argentinean geochemical laboratory will be upgraded by the purchase of a Tungsten carbide ring mill. The ring mill is an essential piece of equipment used to efficiently pulverize rock samples more efficiently.



First Quarter Action Items:

Third Quarter Action Items:

D.96/A-2 Airborne geophysics acquisition and interpretation Argentina

$179,000

ongoing Budget change (October 1, 1997) +90,000 $269,000



Airborne geophysics is an important tool used by exploration companies to assess and help define an exploration program in a new region. Airborne geophysics has been flown in other areas of the Puna but no regional airborne aeromagnetic data is available for the area of Multinational Andean Project. Under the Multinational Andean Project, airborne geophysics, specifically aeromagnetic data, will be acquired and if funds permit, radiometric data. This airborne geophysics will be acquired through a multi-company-government consortium. This multi-company-government consortium will also enhance the relationship of the SEGEMAR with the private sector. It is expected that the airborne geophysics will enhance exploration activity in this area in a similar way to the acquisition of the regional geochemical data. In this fiscal year a contract will be let to a regional airborne aeromagnetic specialist in Canada to set up the parameters of this survey to be flown in the next fiscal year. It is expected that this consortium will facilitate the acquisition of aeromagnetic data over the entire project area. The cost of the airborne geophysics to the project will be on the order of $150,000.



First Quarter Action Items:

Second Quarter Action Items:

Third Quarter Action Items:

D.96/A-3 Precision analytical whole rock analyses for major, trace and rare earth elements Argentina

$25,250

ongoing Budget change (October 1, 1997) no change $25,250



In order to assist the exploration community in focussing their exploration efforts, it is absolutely imperative that an understanding of the geological evolution of a region is acquired. It is through understanding the geological evolution of a region that focused exploration can progress. Specific types of geological features may be associated with mineralization or provide a control on the distribution of ore bodies. Volcanoes can have differing chemical signatures and origins - some associated with ore forming fluids, other not. Within this project, acquisition of excellent analytical data on rocks (particularly analyses of volcanic rocks) contained within the project area is of prime importance in helping to elucidate the relationships between various volcanic strata and mineralization. The Argentinean's propose that samples will be analysed for a complete suite of major, minor and trace elements. A sub-set of these samples will be analysed for rare earth elements. Assistance in interpretation of the results will be through the Volcanology Short course to be held at UBC in June. Additional need for assistance in interpretation will be assessed after the short course. In addition an agate ring mill will be bought for the Argentinean's in order that they may improve their processing procedure.



First Quarter Action Items:

Second Quarter Action Items:

Third Quarter Action Items:

D.96/A-4 Precision dating by Ar-Ar or other techniques as applicable Argentina

$61,750

ongoing Budget change (October 1, 1997) no change $61,750



In addition to precise whole rock geochemical analyses, an understanding of the timing of geological events is critical to understanding the geological evolution of an area. The temporal elements of this project will be addressed using radiometric dating techniques. Additional samples will be submitted in this fiscal year for precise dating to augment those received in the last fiscal year. Assistance will be given to the Argentinean's in terms of sample choice and sample processing through teleconferencing with Mr. Mike Villeneuve (GSC Ottawa).



First Quarter Action Items:

Second Quarter Action Items:

Third Quarter Action Items:

D.97/A-1 Radiogenic isotope analysis (Nd, Sr, Os) Argentina $10,000
cancelled Budget change (October 1, 1997) -10,000 $0


In order to assist the exploration community in focussing their exploration efforts, it is absolutely imperative that an understanding of the geological evolution of a region is acquired. Through many types of analytical work, such as radiometric dating and geochemistry, a greater understanding of the geological evolution is possible. These data sets can be enhanced through the additional information gained by initial isotopic signatures of rocks that can shed light on regional evolution and magmatic history. This enhanced information can lead to greater understanding of the spatial and temporal evolution of volcanic rocks hosting mineralization that in turn can enhance exploration efforts by helping to focus exploration on specific areas and times.



First Quarter Action Items:

Second Quarter Action Items:

Third Quarter Action Items:



D.97/A-2 Stable isotopic analysis for O, D Argentina

$5,000

ongoing Budget change (October 1, 1997) +10,000 $15,000



In order to assist the exploration community in focussing their exploration efforts, it is absolutely imperative that an understanding of the geological evolution of a region is acquired. Through many types of analytical work, such as radiometric dating and geochemistry, a greater understanding of the geological evolution is possible. These data sets can be enhanced through the additional information gained by stable isotopic analyses of mineralized material. These analyses can give an indication of the type and timing of ore forming fluids and enhance understanding of the timing and type of mineralization. This enhanced information can in turn be used to enhance exploration efforts by helping to focus exploration on specific types of mineralization, mineralized areas and timing of mineralization.



First Quarter Action Items:

Third Quarter Action Items:



D.96/B-5 On site assessment and training in laboratory techniques Bolivia

$0

no activity Budget change (October 1, 1997) no change $0



At this time this activity will be deferred until the next fiscal year when an assessment of the laboratory needs of the Bolivians can be made.



D.96/B-6 Precision analytical whole rock analyses for major, trace and rare earth elements Bolivia

$15,250

ongoing Budget change (October 1, 1997) no change $15,250



In order to assist the exploration community in focussing their exploration efforts, it is absolutely imperative that an understanding of the geological evolution of a region is acquired. It is through understanding the geological evolution of a region that focused exploration can progress. Specific types of geological features may be associated with mineralization or provide a control on the distribution of ore bodies. Volcanoes can have differing chemical signatures and origins - some associated with ore forming fluids, other not. Within this project, acquisition of excellent analytical data on rocks (particularly analyses of volcanic rocks) contained within the project area is of prime importance in helping to elucidate the relationships between various volcanic strata and mineralization. The Bolivians propose that a significant number of samples will be analysed for a complete suite of major, minor and trace elements. A sub-set of these samples will be analysed for rare earth elements. Assistance in interpretation of the results will be through the Volcanology Short course to be held at UBC in June. Additional need for assistance in interpretation will be assessed after the short course.



First Quarter Action Items:

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Second Quarter Action Items:

Third Quarter Action Items:



D.96/B.7 On-site training in fluid inclusion analyses Bolivia

$5,000

ongoing Budget change (October 1, 1997) +1,000 $6,000



Fluid inclusions are small trapped pockets of fluids within minerals. Determining the fluids that are contained within these small trapped bubbles helps understand the evolution of the minerals themselves. Understanding the evolution, or growth, of these minerals helps determine the evolution of potentially ore-bearing fluids. The analysis of these fluids provides critical clues to the understanding of the evolution of an ore deposit. To help the Bolivians increase their expertise in this area, fluid inclusion apparatus has been bought and a contract will be let for training in the use of the equipment. If necessary, follow-up courses or workshops will be held in upcoming fiscal years.



First Quarter Action Items:

Third Quarter Action Items:



D.96/B-8 Geochemical exploration techniques, sample handling and data analysis Bolivia

$75,400

ongoing Budget change (October 1, 1997) -18,400 $57,000



The Bolivian Survey plans to analyse a total of 1500 samples over the course of the project.

(265 were analysed in 1996/97 fiscal year). Regional geochemical surveys are one of the best ways to generate exploration interest in an area and help exploration companies focus exploration work. It is expected that a short course in the interpretation of regional geochemical analyses will be held sometime in the future. Additionally, the Bolivian geochemical expertise will be increased with the purchase of PIMA spectrometers.



First Quarter Action Items:

Second Quarter Action Items:

Third Quarter Action Items:

D.96/B-9 On-site training in petrographic techniques (binocular, reflected and transmitted) Bolivia

$0

no activity Budget change (October 1, 1997) no change $0



In addition to detailed analytical analyses and precise dating it is also necessary to have an understanding of the petrogenesis of rocks within the project area. In order to upgrade the petrographic capability of Bolivia new microscopes will be purchased and training will be given in this fiscal year on petrographic techniques. No equipment funds remain to upgrade these facilities.



D.96/B-10 Precision dating by Ar-Ar or other techniques as applicable Bolivia

$22,000

ongoing Budget change (October 1, 1997) -8,800 $13,200



In addition to precise whole rock geochemical analyses, an understanding of the timing of geological events is critical to understanding the geological evolution of an area. The temporal elements of this project will be addressed using radiometric dating techniques. Additional samples will be submitted in this fiscal year for precise dating to augment those received in the last fiscal year. Assistance will be given to the Bolivians in terms of sample choice and sample processing through teleconferencing with Mr. Mike Villeneuve (GSC Ottawa).



First Quarter Action Items:

Third Quarter Action Items:

D.96/B-11 On-site training in digital manipulation, large format printing and map production Bolivia

$21,265

ongoing Budget change (October 1, 1997) -5,500 $15,765



Digital manipulation of data is of prime importance in the production of new and updated geological maps. The ability of the Bolivians to handle digital data will be upgraded through the purchase of equipment and through specific focussed training on the use of the equipment to be purchased. Arrangements have been made to obtain software (PCI) and training through GLOBESar II project. Two images of importance to MAP were obtained to work with under the GLOBESar project. This is training that is also being made available to the Argentineans and Peruvians.



First Quarter Action Items:

Third Quarter Action Items:

D.96/C.12 Radiogenic isotope analyses (Nd and Sr) Chile

$0

no activity Budget change (October 1, 1997) no change $0



As with precise analytical whole-rock chemistry, the isotopic signature of rocks is of importance in understanding their tectonic evolution and origin of the magmatic fluids. This enhanced information can lead to greater understanding of the spatial and temporal evolution of volcanic rocks hosting mineralization that in turn can enhance exploration efforts by helping to focus exploration on specific areas and times.



First Quarter Action Items:

D.96/C-13 Ar-Ar dating in Ottawa Chile

$27,940

ongoing Budget change (October 1, 1997) -4,315 $23,625



In addition to precise whole rock analytical data upon which to base petrogenetic interpretations, an understanding of the timing of geological events is critical. Timing is the basis of understanding the geological evolution of an area. The temporal element of this project will be addressed using radiometric dating techniques. Samples were submitted in 96/97 fiscal year and additional samples are expected to be submitted for precise dating using the Ar39-Ar40

method. Assistance will be given to the Chileans in terms of sample choice and sample processing through teleconferencing with Mr.?Mike Villeneuve (GSC, Ottawa). Additional expertise, training or other assistance will be available as needed by the Chileans to help them establish an Ar-Ar facility in Chile.



First Quarter Action Items:

Third Quarter Action Items:

D.96/C-14 Hydrogeology Project Development Chile

$25,000

ongoing Budget change (October 1, 1997) no change $25,000



Once mineral deposits have been identified, exploration and mining companies are faced with finding an adequate source of water for exploration and mining operations. In the extremely arid Altiplano this is a significant impediment to mine development. The Chileans have identified a need for hydrogeological investigations in the project region to identify and constrain existing aquifers. Experts from the University of Waterloo Hydrogeology group will assist SERNAGEOMIN in establishing a ground water exploration program in the project area.



First Quarter Action Items:

Third Quarter Action Items:

D.96/C-15 Precision analytical whole rock analyses for major, trace and rare earth elements Chile

$0

no activity Budget change (October 1, 1997) no change $0



In order to assist the exploration community in focussing their exploration efforts, it is absolutely imperative that an understanding of the geological evolution of a region is acquired. It is through understanding the geological evolution of a region that focused exploration can progress. Specific types of geological features may be associated with mineralization or provide a control on the distribution of ore bodies. Volcanoes can have differing chemical signatures and origins - some associated with ore forming fluids, other not. Within this project, acquisition of excellent analytical data on rocks (particularly analyses of volcanic rocks) contained within the project area is of prime importance in helping to elucidate the relationships between various volcanic strata and mineralization. The Chileans propose that over the following few years rock samples will be analysed for a complete suite of major, minor and trace elements. A sub-set of these samples will be analysed for rare earth elements. Interpretation of petrological geochemical analytical results will form part of the short course to be given in the volcanology short course to be given June 9-22 at UBC.



First Quarter Action Items:

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D.97/C-3 Zircon or other types of radiometric dating Chile

$25,000

ongoing Budget change (October 1, 1997) no change $25,000



In addition to precise whole rock geochemical analyses, an understanding of the timing of geological events is critical to understanding the geological evolution of an area. The temporal elements of this project will be addressed using radiometric dating techniques, mostly Ar-Ar. Additional samples will be submitted in this fiscal year for precise dating to augment those received in the last fiscal year and dated by the Ar-Ar method. Some critical stratigraphic units are beyond the age range for which Ar-Ar dating techniques. For these samples, dating will be done by U-Pb extraction of zircons or other techniques as deemed most appropriate for the age and type of rock being dated. Assistance will be given to the Chileans in terms of sample choice and sample processing through teleconferencing with Mr. Mike Villeneuve (GSC Ottawa).



First Quarter Action Items:

Third Quarter Action Items:

D.97/C-4 Geophysical training in 3 dimensional modelling or gravity and aeromagnetic using Magi xl and oasis (GeoSoft) Chile

$17,960

ongoing Budget change (October 1, 1997) no change $17,960



Geophysical techniques are one of the ways three dimensional understanding of the geology of a region can be obtained.



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Second Quarter Action Items:

D.97/C-5 Fluid inclusion training and equipment Chile

$28,500

ongoing Budget change (October 1, 1997) +1,500 $30,000



Fluid inclusions are small trapped pockets of fluids within minerals. Determining the fluids that are contained within these small trapped bubbles helps understand the evolution of the minerals themselves. Understanding the evolution, or growth, of these minerals helps determine the evolution of potentially ore-bearing fluids. The analysis of these fluids provides critical clues to the understanding of the evolution of an ore deposit. The Chileans already poses a high level of expertise in fluid inclusion work.



First Quarter Action Items:

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D.97/C-6 Laboratory Equipment Chile

$40,000

ongoing Budget change (October 1, 1997) no change $40,000



SERNAGEOMIN laboratories operate at a high level of international standards. However, there are some shortcomings in their operational capacity and ability that can be addressed by the acquisition of specific analytical equipment and possibly additional training.



First Quarter Action Items:

Second Quarter Action Items:

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D.96/P-16 Palaeontological training and age determinations Peru

$55,460

ongoing Budget change (October 1, 1997) -45,000 $10,460



When producing geological maps age control is of paramount importance. Many ore deposits are associated with rock of a specific type or age. In order to make these correlations, lithological, geochemical and age dating must be carried out simultaneously. In regions that contain igneous and volcanic rocks age determinations are obtained through radiometric dating techniques. In regions that contain significant amounts of sediments the most cost effective way to obtain age control is through Palaeontological means. Under this activity samples containing micro fossils will be analysed and training will be given in the interpretation and laboratory techniques employed to obtain micro fossils.



First Quarter Action Items:

Third Quarter Action Items:

D.96/P-17 On-site training in digital manipulation, large format printing and map production Peru

$8,000

ongoing Budget change (October 1, 1997) no change $8,000



Digital manipulation of data is a prime importance in the production of new and modern geological maps. The ability of the Peruvians to handle digital data will be upgraded through the purchase of equipment and through specific focused training on the use of the equipment to be purchased.



First Quarter Action Items:

Second Quarter Action Items:

Third Quarter Action Items:

D.96/P-18 Laboratory training and upgrading of laboratory (Hg environmental detection?) Peru

$31,000

ongoing Budget change (October 1, 1997) no change $31,000



The INGEMMET has indicated a need to upgrade their laboratory facilities in Lima, Peru. They have also expressed a desire to increase their ability to detect mercury. Mercury is a prime environmental contaminant. Initially assistance will be given in the interpretation of geochemical results.





First Quarter Action Items:

Second Quarter Action Items:

Third Quarter Action Items:

D.96/P-19 Precision dating by Zircon, Ar-Ar or other techniques as applicable Peru

$25,000

ongoing Budget change (October 1, 1997) no change $25,000



In addition to precise whole rock geochemical analyses, an understanding of the timing of geological events is critical to understanding the geological evolution of an area. The temporal elements of this project will be addressed using radiometric dating techniques for crystalline rocks (dating of sedimentary rocks will be through fossils). Assistance will be given to the Peruvians in terms of sample choice and sample processing through teleconferencing with Mr.?Mike Villeneuve (GSC Ottawa) and discussions with Dr. Steve Gordey.



First Quarter Action Items:

Third Quarter Action Items:

D.96/P-20 Precision analytical whole rock analyses for major, trace and rare earth elements Peru

$8,750

ongoing Budget change (October 1, 1997) -7,000 $1,750



In order to assist the exploration community in focussing their exploration efforts, it is absolutely imperative that an understanding of the geological evolution of a region is acquired. It is through understanding the geological evolution of a region that focused exploration can progress. Specific types of geological features may be associated with mineralization or provide a control on the distribution of ore bodies. Volcanoes can have differing chemical signatures and origins - some associated with ore forming fluids, other not. Within this project, acquisition of excellent analytical data on rocks (particularly analyses of volcanic rocks) contained within the project area is of prime importance in helping to elucidate the relationships between various volcanic strata and mineralization. The Peruvians propose that over the next few years a significant number of samples will be analysed for a complete suite of major, minor and trace elements. A sub-set of these samples will be analysed for rare earth elements. Help for the Peruvians in the interpretation of the results will be through the Volcanology short course give at UBC June 9-12.



First Quarter Action Items:

?

Third Quarter Action Items:

Project Management



Activity # Summary of Activities Country Budget Budget by Purpose Status
PM Project Management $110,172
PM.97/M-1 Preparation of final report (1996/97) and 1st quarter forecast Canada

$3,150

Complete
PM.97/M-2 Preparation of 1st quarter financial report (April-June) and 2nd quarter forecast (July-Sept) Canada

$1,050

Complete
PM.97/M-3 Preparation and attendance at mid year Executive Council Meeting Canada

$11,500

Complete
PM.97/M-4 Preparation of mid-year report and 2nd quarter financial report (July-Sept) and 3rd quarter forecast (Oct-Dec) Canada

$1,750

Complete
PM.97/M-5 Preparation of 3rd quarter (Oct-Dec) financial report and 4th quarter forecast (Jan-March) Canada

$1,050

PM.97/M-6 Preparation and attendance at end-of-year Executive Council Meeting, preparation of Annual Work plan (including 4 year budget projection) Canada

$2,100

PM.97/M-8 Database management Canada

$1,050

Complete
PM.97/M-9 Annual Work plan 1998-1999 (March 15, 1997) including financial forecasts for project Canada

$7,100

PM.97/M-10 Project Administration Canada

$81,422



Project management will be carried out by the Geological Survey of Canada under the direction of Project Manager, Dr. Catherine Hickson. The goal of project management will be to provide effective and efficient management. Under project management the various reports requested by CIDA will be completed in addition to keeping strict financial control over the project.



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Revised Detailed Budget Forecast Table to March 31, 1998

?



?





Quarterly Forecast and Request for Funds

Equipment to be Procured to March 31, 1998











Revised Calendar of Activities for1997/98 Fiscal Year

ANNEX A





Second Quarter Detailed Financial Report



Argentina Activity Report

Bolivia Activity Report

Chile Activity Report

Multi-country Activity Report

Peru Activity Report

Report Totals



ANNEX B



Minutes of the Executive Council Meeting - Arequipa, Peru

ANNEX C



Arequipa Accords

ANNEX D



Verifiable Indicators - Questionnaire