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MULTINATIONAL ANDEAN PROJECT

Canadian International Development Agency, Arrangement: 24846, RC/Project: 540/20080

Commitment: 189086, Supplier: G41000



REPORT #7

PART "A"

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1997/98 Year End Activity Report

Fourth Quarter Financial Report 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

March 31, 1998



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: http://pma-map.com

Table of Contents



Report Summary 3

Accomplishments 3

1997/98 Final Activity Report 4

Purpose A 4

Purpose B 10

Purpose C 12

Purpose D 13

Project Management 25



Tables

Equipment Procured April 1, 1997 to March 31, 1998 28

Multiyear project financial profile (reprofiled to 2001) 29



Annexes

Annex A: MAP Summary Report for 1997/98 - Sorted by Country and Sub-Unit

Annex B Itemized Expenditure Report

Annex C Fieldlog short course in Argentina, Bolivia, Chile, and Peru (Mr. Boyan Brodaric and Mr. Otto Krauth)

Annex D: Volcanological Field work in Argentina (Drs. Hickson and Edwards)

Annex E: Magix software short course planning for Chile (Dr. Dennis Teskey)

Annex F: Hydrogeological fieldwork (Drs. Aravena and Rudolf)

Annex G: Parksville Executive Council Meeting Signed Minutes

Annex H: Austral Puna Airborne survey progress report (Dr. Dennis Teskey)

Annex I: Rock Sample Report

Annex J: MAP WEB Page statistical report (Mr. Otto Krauth)

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Report Summary



This document reports on the activities that took place during the fourth quarter of the 1997/98 fiscal year (January 1-March 31, 1998) and gives a summary of the work plans for 1998/99 (Part 2) fiscal year for the Multinational Andean Project (MAP). A revised budget forecast ending December 31, 2001 is also presented as well as the minutes of the biannual Executive Council meetings held on Vancouver Island, B.C. in conjunction with the Society of Economic Geologists (SEG) Cordilleran Roundup in Vancouver. The April 1, 1998 to March 31, 1999 work plans for each of the participating countries appear in Annex H.

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



Accomplishments



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1997/98 Final Activity Report



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.

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 (October 1, 1997) Budget Change -48,116 $135,285
Budget change (January 1, 1998) -20,922 $162,479
Final expenditure total -2411.04 $180,989.96


The budget change of Purpose A between the second and third quarters is largely due to the training on FieldLog software and procurement of Newtons for each of the four member countries.

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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
ongoing Budget change (January 1, 1998) +5,674 $20,174
Final expenditure total +5748.83 $20,248.83



This activity will enhance the ability of SEGEMAR for using satellite image (remote sensing) analysis to 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 maps and reports within one month of field work and published in the GSC's Current Research series.



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Activity Conclusion:



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
complete Budget change (January 1, 1998) +4,932 $47,432
Final expenditure total +17,126.41 $59,626.41


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.



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Activity Conclusion:

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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
complete Budget change (January 1, 1998) -21,081 $12,304
Final expenditure total -20525.40 $12,859.6



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.

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Activity Conclusion:



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
ongoing Budget change (January 1, 1998) +6,434 $22,434
Final expenditure total +5,047.45 $21,047.45



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 maps and reports within one month of field work and published in the GSC's Current Research series.



First Quarter Action Items:

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Activity Conclusion:



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
ongoing Budget change (January 1, 1998) +3,875 $19,875
Final expenditure total +9,627.07 $25,672.07



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 maps and reports within one month of field work and published in the GSC's Current Research series.



First Quarter Action Items:

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Activity Conclusion:

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
complete Budget change (January 1, 1998) -990 $9,086
Final expenditure total -4,105.85 $5,970.15



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.



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Activity Conclusion:

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
cancelled Budget change (January 1, 1998) -13,945 $555
Final expenditure total -13,394.10 $1,105.9



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.

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

$18,440

complete Budget change (October 1, 1997) -632 $17,808
complete Budget change (January 1, 1998) -5,184 $13,256
Final expenditure total _-5,182.21 $13,254.79



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 focussing 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 focussing 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
ongoing Budget change (January 1, 1998) +9,990 $16,990
Final expenditure total +13,206.51 $20,206.51



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 maps and reports within one month of field work and published in the GSC's Current Research series.



First Quarter Action Items:

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Activity Conclusion:



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
cancelled Budget change (January 1, 1998) -14,125 $375
Final expenditure total -13,501.75 $998.25



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.



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Activity Conclusion:

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 (October 1, 1998) Budget Change -20,000 $51,170
Budget change (January 1, 1998) -19,152 $52,018
Final expenditure total +50,473.18 $121,643.18




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
ongoing Budget change (January 1, 1998) -1,345 $18,825
Final expenditure total +14,452.53 $34,622.53



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.



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Activity Conclusion:

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
no activity Budget change (January 1, 1998) no change $0
Final expenditure total +294.20 $294.20



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
complete Budget change (January 1, 1998) -17,807 $33,193
Final expenditure total +34,058.45 $85,058.45



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.



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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
no change $14,500
Budget change (January 1, 1998)

1,062

$13,438

Final expenditure total

$-10,621.63

$3,878.37



C.96/M-1 Send "News Release" of project commencement to Private Sector Companies all

$3,500

ongoing Budget change (January 1, 1998) -1,230

$2,270

Final expenditure total

-2,247.41

$1,252.59

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

$500

complete Budget change (January 1, 1998)

0

$500
Final expenditure total

+500

$0.00

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C.97/M-1 Technical Liaison Committee with Industry Representatives. all $10,500
complete Budget change (January 1, 1998)

+168

$10,668

Final expenditure total

-7,874.22

$2,625.78



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.



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Activity Conclusion:

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Purpose D



Activity # Summary of Activities Country Budget Budget by Purpose
D Institutional strengthening. $814,575
Budget change (October 1, 1997) Budget Change +2,335 $816,910
Budget change (January 1, 1998) -217,471 $597,104
Final expenditure total -268,907.14 $545,667.86


The budget changes of Purpose D between the second and third quarters is largely due to the low numbers of samples sent to Canada for processing as well as time constraints on some dating facilities in Canada.



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
ongoing Budget change (January 1, 1998) -26,680 $74,220
Final expenditure total -14,720.76 $86,179.24



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.



First Quarter Action Items:

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Activity Conclusion:



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

$179,000

ongoing Budget change (October 1, 1997) +90,000 $269,000
ongoing Budget change (January 1, 1998) +39,713 $218,713
Final expenditure total +73,854.05 $252,854.05



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:

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Activity Conclusion:



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
ongoing Budget change (January 1, 1998) -7,690 $17,560
Final expenditure total -20,339.94 $4,910.06



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 focussed 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.



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Activity Conclusion:

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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
ongoing Budget change (January 1, 1998) -54,182 $7,568
Final expenditure total -53,698.50 $8,051.5



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).



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D.97/A-1 Radiogenic isotope analysis (Nd, Sr, Os) Argentina $10,000
cancelled Budget change (October 1, 1997) -10,000 $0
cancelled Budget change (January 1, 1998) -10,000 $0
Final expenditure total -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.



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

$5,000

ongoing Budget change (October 1, 1997) +10,000 $15,000
ongoing Budget change (January 1, 1998) -5,000 0
Final expenditure total -3941.54 $1,058.46



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:

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

$0

no activity Budget change (October 1, 1997) no change $0
Final expenditure total $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
complete Budget change (January 1, 1998) -13,930 $1,320
Final expenditure total -5,563.38 $9,686.62



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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Activity Conclusion:

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

$5,000

ongoing Budget change (October 1, 1997) +1,000 $6,000
postponed Budget change (January 1, 1998) -1,133 $3,867
Final expenditure total -5000 $0



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.



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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
ongoing Budget change (January 1, 1998) -14,632 $60,768
Final expenditure total -60,538 $14,862



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.



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Activity Conclusion:



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
Final expenditure total 0 $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
No more activity this fiscal year Budget change (January 1, 1998) -21,978 $22
Final expenditure total -21,978.12 $21.88



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:

Fourth 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
postponed Budget change (January 1, 1998) -18,356 $2,909
Final expenditure total -17,757.17 $3,507.83



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.



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

$0

no activity Budget change (October 1, 1997) no change $0
Final expenditure total 0 $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.



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

$27,940

ongoing Budget change (October 1, 1997) -4,315 $23,625
complete Budget change (January 1, 1998) -10,984 $38,924
Final expenditure total +15,984.38 $43,924.38



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.



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D.96/C-14 Hydrogeology Project Development Chile

$25,000

ongoing Budget change (October 1, 1997) no change $25,000
ongoing Budget change (January 1, 1998) -4,250 $20,750
Final expenditure total -23,323.30 $16,767.7



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.



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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
complete Budget change (January 1, 1998) +3,897 $3,897
Final expenditure total 0 $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.



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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
complete Budget change (January 1, 1998) -5,000 $20,000
Final expenditure total -24,969.77 $30.23



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).



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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
ongoing Budget change (January 1, 1998) -7,260 $10,700
Final expenditure total -11,196 $6,764



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



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

$28,500

ongoing Budget change (October 1, 1997) +1,500 $30,000
ongoing Budget change (January 1, 1998) -5,343 $23,157
Final expenditure total +4,197.23 $32,697.23



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.



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D.97/C-6 Laboratory Equipment Chile

$40,000

ongoing Budget change (October 1, 1997) no change $40,000
ongoing Budget change (January 1, 1998) no change $40,000
Final expenditure total -258 $39,742



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.



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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
Budget change (January 1, 1998) -54,508 $952
complete Final expenditure total -52,601.05 $2,858.95



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.



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