Quality Assurance & Quality Control Procedures

Sampling Methodology and Quality Control, Quality Assurance Procedures

Sampling Method and Security

Drilling is supervised by a qualified geologist. Drill core is stored in core boxes with marker blocks indicating the interval down the hole in metres. Core boxes are labelled with box number, drill hole number, and the contained core interval. Core boxes are transported under supervision to CMC's secure facility. CMC qualified geologists log the drill core for rock type, alteration, structure, and mineralization. A standardized logging form is used. The core is digitally photographed before splitting. Estimates of the core recoveries and rock-quotient-density ("RQD") measurements are done concurrently with the logging.

Core is split longitudinally in half using a manual core splitter or a diamond saw. One -half of the split core is selected for sampling. The length of the sample interval depends upon geological rock contacts, core size, and changes in mineral intensity, but generally ranges from one to three metres for NQ core, depending on the structure being sampled. Every attempt is made to maintain samples of a uniform length.

During the core logging, CMC geologists collect core samples for specific gravity testing. These are representative samples of the various rock types. The samples are wrapped in plastic and shipped to the Geological Survey Laboratory in Pachuca, Mexico, an ISO certified laboratory, for measurement.

The split core for each assay interval is placed in a double-bagged plastic sample bag, tagged and labelled with sample number and Company name. The sample number is a consecutive number sequence whose reference is known only to the Company. Consecutively numbered sample bags are then placed in a labelled "rice sack." The consecutively numbered "rice sacks" are then sealed with a security tag. The rice sacks are picked up from CMC's facility by personnel from Inspectorate America Corp. (Inspectorate), the Company's selected primary laboratory, and driven directly to their sample preparation facilities in Durango, Mexico.

Inspectorate is an ISO 9002 accredited laboratory with their assay laboratory located in Reno, Nevada, USA. Inspectorate takes possession of the samples at CMC's logging and core storage facility in Juan Aldama.

Standards and blanks are inserted at every twentieth sample interval by the Company's logging geologist on an alternating basis.

Sample Preparation and Analyses

The core samples, upon arrival at the sample preparation facility, are sorted into batches with ascending, consecutively numbered assay tags and dried at 100° C overnight. The samples are then crushed to >80% minus 10 mesh. The entire sample is then split by using a Jones Riffle splitter to a statistically-representative 300-gram sub-sample. The sub-sample is then pulverized in a LM2 Labtechnics pulverizer to a 95 percent minus 150 mesh pulp, then bagged. Pulps are air freighted to Inspectorate's assay laboratory in Reno, Nevada for assaying.

Inspectorate's assay procedures typically use a two-assay ton (58.34 gram) sub-sample of the 300 gram assay pulp for the Gold Fire Assay and Atomic Absorption finish analysis. Each laboratory batch of 40 samples is composed of thirty six assay samples, one reagent blank (#40), one in-house standard #20) and two repeats (#1 and #19). Assay procedures vary for the metals being assayed and can be found on Inspectorate's website.

Samples are analyzed using Inspectorate's "Pathfinder 11" package that uses multi-flame atomic absorption with aqua regia digestion. Elements analyzed are; Ag, As, Bi, Cu, Hg (by Cold Vapor and AA Finish), Mo, Pb, Te, Tl, Sb and Zn. Gold is analyzed using 29.166, (one-assay ton), Fire Assay with AA finish. A two-assay ton analysis would be used if deemed necessary.

30 element geochemistry suite, using Aqua Regia digest and inductively coupled plasma (ICP) analysis is also used when appropriate. The 30 elements analyzed are: Ag, Al, As, B, Ba, Bi, Ca, Cd, Co, Cu, Cr, Fe, Ga, K, La, Mg, Mn, Mo, Na, Mi, Pb, P, Sb, De, Sr, Ti, Tl, V, W and Zn.

Pulps are stored at Inspectorate's laboratory in Reno, NV, for 90 days in case any pulps need to be re-analyzed. They are then returned to the Company for long-term storage. Coarse Rejects are returned to CMC's facilities in Juan Aldama, Zacatecas after 1 month storage in Inspectorate's facilities in Durango.

Quality Assurance and Quality Control ("QA/QC")

CMC has instituted a QA/QC program to ensure the final assay results are not compromised in any way. If anomalous results are identified, corrective measures can be taken at the earliest possible time.

CMC's blanks and standards samples are inserted at a frequency of 1 in every 20 samples on an alternating basis. Blanks are normally commercially purchased "turkey grit", or similar crushed barren granodiorite. CMC is using a standard commercially prepared by CDN Resource Laboratories Ltd., of Delta, BC, Canada for the Lobos QA/QC program. The use of blanks and standards provides a check for bias in the assay results. There should be no bias.

Pulps from approximately 1 in every 20th sample (excluding blanks and standards) assayed at the primary lab (Inspectorate) are shipped to a second lab for re-analysis. At the second laboratory these pulps, approximately 200 grams in weight, are split in half. One half is then re-numbered with a random number sequence to produce a set of ‘blind' duplicate samples that are then sent back to Inspectorate for re-analysis. The other half is analysed by the same Atomic Absorption Suite procedures for comparison with the original and the blind analyses to check for bias. This procedure provides a check on precision of the Inspectorate lab results.

In conjunction with the above duplicate analysis program, a check is made to ensure that the longitudinal half splitting of the drill core produces an unbiased sample. A statistically representative number, approximately 1:40, of half-core assay intervals are collected, analysed by Inspectorate, and the results compared with the original half-core results. There should be no bias. The rejects from each of these second-half cores are re-sampled, pulped and assayed to allow comparison with the initial analyses of the second half core. This procedure allows for evaluation of the precision resulting from sub-sampling.

This general procedure provides a consistent set of data with which to identify sampling error, sub-sampling error and analytical precision for the data provided by the principal laboratory (Inspectorate).