Escudo Project (Propiedad Libre)

TECHNICAL REPORT FOR
AN INDUCED POLARIZATION SURVEY
AND STRUCTURAL INTERPRETATION
OF THE ESCUDO PROPERTY, CHILE.
A PORPHYRY COPPER PROSPECT
For: CONDOR RESOURCES INCORPORATED
By: Richard Culbert, Ph.D., P.Eng.
Survey Date: February, 2004
Field Examination: July, 2004
Report Dated: November 16th, 2005

ESCUDO PROPERTY: CONDOR RESOURCES INC.
TABLE OF CONTENTS Page
SUMMARY 3
INTRODUCTION AND TERMS OF REFERENCE 5
DISCLAIMER 5
PROPERTY DESCRIPTION AND LOCATION 5
ACCESSIBILITY, CLIMATE, LOCAL RESOURCES,
INFRASTRUCTURE AND PHYSIOGRAPHY 6
HISTORY 6
GEOLOGICAL SETTING 6
DEPOSIT TYPES 10
EXPLORATION 10
SAMPLING METHOD AND APPROACH 14
SAMPLE PREPARATION, ANALYSES AND SECURITY 14
ADJACENT PROPERTIES 14
INTERPRETATION AND CONCLUSIONS 14
RECOMMENDATIONS 16
BIBLIOGRAPHY 19
CERTIFICATE 20
FIGURES
Figure 1. Location Map 4
Figure 2. Limited Geology and Sample Sites 9
Figure 3. Induced Polarization Summary 12
Figure 4. Low Resistivity Features 13
Cross-sections of Induced Potential and Resistivity follow page 32
APPENDICES
Appendix I THE QUANTEC GEOPYSICAL REPORT (abbreviated)
Appendix II COMPARISON OF IP / RESISTIVITY DATA FROM
COLLAHUASI / UJINA MINE WITH ESCUDO
(Abstract and Summary of report by geophysicist)
Appendix III GEOCHEMICAL SAMPLES AND RESULTS
2
SUMMARY
The Escudo Property constitutes a contiguous claim block of 98 square kilometers owned
entirely by Mr. Patrick Burns, who plans to transfer the property to Condor Resources
Incorporated. It is located in the high Atacama Desert of northern Chile, some 245
kilometers southeast of the city of Antofagasta. The claims cover a basin marking the
intersection between the Culampaja Lineament and a branch of the West Fissure fracture
belt, along which most of the world-class copper porphyry deposits of Chile are situated.
Atacaman porphyry deposits are typically leached to a depth of 200-300 meters, with
much of the copper so mobilized forming a chalcosite blanket at depth, which is a major
factor in their economic importance. Because of this leaching, and of the detrital
overburden which covers most of the basin, neither geological nor geochemical surveys
are of much use here. The primary method of searching for this style of mineralization is
with deep-probing induced polarization (IP) geophysics, which can map the approximate
distribution of disseminated sulfides at depth (with some caveats). These surveys cannot
differentiate pyrite from copper sulfides, but in the trajectory of the West Fissure belt,
there is a good chance of copper being an important constituent of porphyry style
mineralization.
Four lines of IP-resistivity survey were run across the Escudo Property by Quantec
Geofisica Ltda. of Antofagasta. This revealed a classical IP anomaly at an appropriate
depth, measuring 4 to 6 kilometers in width and at least 5.5 kilometers in length. A
report by Quantecs chief geophysicist in Chile, comparing this anomaly to those over the
Collahuasi deposits prior to mining, has shown a similarity in size and other important
characteristics.
Historically, all large IP anomalies associated with the West Fissure have been drilled,
and there is no doubt that this is a viable drill target. A two phase program is
recommended, the first being further IP geophysics to better define drill targets, and the
second a fairly large drill program, as the actual copper-rich core in porphyry systems
tends to entail a relatively small and sometimes elusive part of the huge geophysical
anomalies.
Atacaman copper porphyries are not easy targets, their size and depth resulting in
expensive exploration programs, commensurate with the potential rewards. A program
of further geophysical surveys is recommended, followed by approximately twenty deep,
reverse circulation drill holes. The cost of this program is estimated to be slightly under
$US 900,000.
3
70
69
SOUTH
PROPERTY
ANTOFAGASTA AMERICA
C H I L E
CHILE
24
Escondida SANTIAGO
Mine
68
DOMEYKO
RANGE
ESCUDO
PACIFIC
PROPERTY
25
Agua
OCEAN Verde Plato de
Taltal Sopa
ARGENTINA
Exploradora
Deposit
26
El
Salvador
Potrerillos
27
CONDOR RESOURCES INC.

Copiapo
ESCUDO PROPERTY
CHILE
Kilometres LOCATION MAP AND
0 50 100 FEATURES MENTIONED IN TEXT
Date: Aug, 2004 Figure No. 1
4
INTRODUCTION AND TERMS OF REFERENCE
This report has been prepared for Condor Resources Inc. at the request of its president,
Mr. Patrick Burns. Its purpose is to present qualified data on the Escudo Property for an
initial public offering by that company. The writer, accompanied by Mr. Burns,
examined the property in a two day return trip from Antofagasta in mid-July of 2004.
The primary target on Escudo Property is a copper porphyry deposit beneath a large
topographic basin. In view of the detrital overburden covering most of the property, and
the fact that porphyry deposits in the Atacama Desert are typically leached to a depth of
200 to 300 meters, the amount of pertinent information which may be collected by
surface examination or sampling, is greatly limited. The relevant data, therefore, is
contained in an induced polarization and resistivity survey carried out by Quantec
Geophysica Limitada, and its interpretation, along with regional structural considerations.
DISCLAIMER
The most important information on this property is the above-mentioned geophysical

survey report by Mr. Joe Jordan, MSc., Senior Geophysicist with Quantec Geophysica
Limitada. Based in Antafagasta, this group has had a great deal of experience in surveys
seeking deeply leached porphyry sites under conditions of the Atacama Desert. The
relationship between the copper porphyry deposits of Northern Chile and the West
Fissure mega-fracture and other structural elements has been discussed widely in the
literature, and reference will be made to some of the more important papers.
PROPERTY DESCRIPTION AND LOCATION
The Escudo Property is comprised of 33 contiguous claims (Escudo 1-33) covering a

total of 98 square kilometers. It is located in the high Atacama Desert, some 245
kilometers southeast of Antofagasta near the southern limit of Chiles Second Region.
The claims extend from 25 deg. 27 to 34 south latitude and from 69 deg. 05 to 12 in
longitude. With reference to the 1:50,000 Chilean topographic mapping system, the
claims are split between the Sierra Vaquillas Altas and the Pereda map sheets.
The property is comprised of 33 exploration permits which are owned 100% by Minera
Condor S.A., a Chilean subsidiary of Condor Resources Inc. All were granted on the 2nd
of July, 2004, except Escudo 7 which dates from the 15th of June, 2004. Within two
years of these dates, the permits must either be converted to an exploitation license, or
continue as exploration permits with half of the present property size.
5
ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRACSTRUCTURE

AND PHYSIOGRAPHY
The Escudo Property is reached via a road which leaves the Pan American Highway 15
kilometers north of Agua Verde and about 210 kilometers south of Antofagasta. The
road is marked Aguas Calientes at the turnoff, and is unpaved but in moderately good
condition. This is followed for about 76 kilometers, at which point jeep tracks south lead
to the northern property boundary in 5 kilometers. All of the central basin and most other
parts of the claim black can be reached by an appropriate four wheel drive vehicle.
Elevations within the property run from 3500 meters to over 4000 meters, so that most
people will require some acclimatization before doing strenuous work. This elevation
also ensures that the area is generally cold and often windy, with temperatures typically
falling below freezing at night. It is also very dry, although some light snowfalls may be
expected in winter due to the proximity to high mountains on the east.
Due to the aridity and elevation, vegetation is limited to scattered tufts of poa grass and a
few small shrubs along washes. The vicuna, a cameloid of the high Andes, is the only
animal larger than small rodents and foxes that are likely to be encountered. There is a
spring in the North Chaco wash to northwest of the claims, which would suffice for
purposes of camping and perhaps drilling. A major mining operation would need to look
eastward for larger water supplies, but this location is more fortunate than most
Atacaman sites in having salars and open lakes near Campamento Plato de Sopa about 30
kilometers to the east.
Gasoline and diesel (but little else) is available from the above-mentioned Aqua Verde
site on the Pan American Highway. The coastal town of Taltal, 80 kilometers farther to
the south, can supply food and some other services, but Antafogasta would be the natural
base for operations, being a fully equipped city based on mining.
HISTORY
The writer is not aware of any previous exploration on this property. There are neither
signs of drilling nor of a previous induced polarization survey, and it seems unlikely that
other methods would be used to seriously explore for a porphyry deposit in an Atacaman
basin.
GEOLOGICAL SETTING
The important porphyry deposits of northern Chile lie within a zone of some 30 to 50
kilometers width that is marked by a mega-fracture which is usually referred to as the
West Fissure, although also called the Domeyko Fault System, especially in Chilean
literature. This complex fault zone extends from at least 19 to 28 degrees of south
latitude, although many authors extend it northward into southern Peru as well as farther
6
to the south. Some of the worlds most important copper deposits lie on this line,
including Chuquicamata, Collahuasi, Escondida and El Salvador.
The origin and history of the West Fissure and its varied movements are still a subject of
some debate, but it has certainly been active since the Eocene, and may possibly date
back to the late Paleozoic. Further discussion of this fracture and its relationship to major
copper porphyry deposits maybe found in Camus, 2003; Richards, 2003 and Sillitoe,
1989, among many others.
The West Fissure is not a single fault line, but rather a complex belt of fracturing with
several splays. It also intersects some major northwest trending fractures, and such
intersections appear to have played an important role in localization of some of the larger
copper porphyry deposits (for example, Richards et al, 2001). Although Chuquicamata
has been sliced by a strand of the West Fissure itself, other major deposits appear to be
more directly associated with splays or secondary structures.
South of the Escondida Deposit, the West Fissure belt is split by a narrow line of hills
known as the Cordillera Domeyko. The main part of the belt runs to the west of this
range, forming a regional depression known as the Central Valley (Depresion
Intermiedia), and most of the exploration carried out in this sector of the West Fissure has
been along that trend. The branch to east of the Domeyko Range passes southward
through the valley of the Rio Frio and is evident in the Escudo Property as a prominent
north-northeast trending fault complex. From geology maps, satellite photos and
previous geophysical surveys in this region, that particular fracture system appears to be
continuous from Escudo southward to the Exploradora Deposit (Jordan, 2004).
The Escudo Property is located where this fault zone meets a major component of the
Culampaja Lineament, which is one of the more important of the northwest trending
structures, and seems to extend from the vicinity of the Baja de Alumbrera copper
porphyry deposit in Argentina to the Guanaco gold mining camp to west of the Cordillera
Domeyko (Richards et al, 2001, Richards 2003).
Descriptive interpretation is complicated by the fact that just north of the latitude of the
Escudo property, the Domeyko Range abruptly terminates, and the trace of the West
Fissure through the area south of this is not clear. The Military Geographic Institute,
which is responsible for topographic maps and their nomenclature, have further confused
the situation by showing the Codillera Domeyko as being offset here some 10 km. to the
east, to form part of the main Andes chain. This actually puts it to the east of the Escudo
Property. There is no such offset in the geology, however, and the two Domeyko
segments should not be confused.
The 1:250,000 geology map of this quadrangle was compiled by Naranjo and Puig (1984)
and in the accompanying paper there is a sketch of structural elements including two
principal lineaments. One of these runs almost east-west along the north fork of Chaco
Wash, which lies immediately north of the Escudo Property. The second runs from this
southward through the property itself. Satellite photographs further suggest a prominent
7
east-west lineament crossing the property, presumably related to the Chaco line to the
north (see Figure 2). The three principal structural orientations are nicely revealed in an
outcrop of resistant Paleozoic rhyolites which breaks through the detritus in an eastern
arm of the basin (sample site 5, Figure 2). There are three clear directions of fracturing,
with discontinuous quartz veinlets. One of these is southwest (Culampaja parallel), a
second is north-south (The West Fissure trend) and the third runs at about 80 degrees,
sub-parallel to the Chaco and air photo lineaments.
In conclusion, the Escudo Property covers a basin which appears to be a nexus of

structural complexity, related to an important eastern component of the West Fissure
fracture belt. It is generally agreed that complex fracturing is important with regard to
structural preparation in the localization of porphyry deposits (Cornejo et al, 1997;
Richards et al, 2001).
Most of the rocks surrounding the central basin are members of the Jurassic Profeta
Formation comprised of limestones and limy shales and sandstones, with beds of
siliceous tuffs. Those seen in the field were notably fissile, and aragonite veining was
observed. The other important lithology here is the Paleozoic La Table Formation
dominated by rhyolites. This occurs mainly on the eastern side of the property, forming
Cerro Amarillo and terrain to the south thereof. Outcrops in the vicinity of sample sites 8
to 10 (see Figure 2) exhibited sulfide cavities, brecciation and resilicification, hematite
staining and minor quartz veining. The eastern contact of the La Tabla rhyolites is
mapped as a thrust fault.
On the northern edge of the property, a thin layer of platy ignimbrites may be seen to
unconformably overly the Jurassic strata. These were not observed in other marginal
outcrops, but may have been preserved in the main basin. The detritus covering this basin
is largely volcanic debris from the Mt. Chaco stratovolcano, which rises to over 5000
meters to east-northeast of the property. Around the basin margins, however, there is
also a surprising amount and variety of epithermal silica float, some composites of which
were sampled for precious metals.
8
x 3668 x 3980
92
x 3618
37
50
91
x 4057
C
x 3663
90 Quebrada Chaco Norte x 4126
35
x 3707
00
89
N
x 3506
88
x 3645
x 3881 x 3848
x 3638
87
x 3804
x 3734
3750 Cerro El Chaco
x
x 4782 5045
x 4620
375
0
CHACO
7186 42
5 0
VOLCANO
x 3517 47 50
85 x 4710
3500
84 x
4213 x 4459
1 x 3723
83 2
x 4147
x 3642
x 3957
82 3
4104
Q 4 Cerro
81 ue Amarillo
x 3775 br 4078
ad
x 3759 a
r
Su
37 50
x 4077
x Ch
80
3710
a co Chaco D
375
0 Sur
da
ebra
Qu
3750
79
5
x 3853
78
7 6
8
x
77 4203
9
50
41
x 3906
76
10 x 4204
x 3653
75
x 3852 11
74
73 B x 4202
Cerro
Creston
37
72 x
50
4147
x 4053
x 4525
A
71
x 4570
x 4061
x 4522
x 3802
70
91 92 93 94 95 96 97
69
3750 CONDOR RESOURCES INC.
x 4061 x 4363
77 78 79 480 81 82 83 84 85 86 87 88 89 90
ESCUDO PROPERTY, CHILE
STRUCTURES La Table Formation rhyolites
A. Principal trace of the Culampaja Lineament
B. Major NNE Fracture, visible in geophysics and satellite photos. 8 ESC8 Sample site
LIMITED GEOLOGY AND
Regional, likely related to West Fissure 5 ESC5 Outcrop sample site SAMPLE SITES
C. Chaco E-W, Lineament 0 1 2 3 4
D. Chaco parallel lineament, visible in satellite photos Date: Aug, 2004 Figure No. 2
Kilometres
9
DEPOSIT TYPES
The porphyry copper deposits of the Atacama Desert are among the most important of the
world, and need little in the way of introduction. In 2001, the Journal Economic Geology
devoted Volume 96 to this subject, and an even more recent source is a book on Chilean
copper porphyries published by the Chilean Geology and Mining Service (Camus, 2003).
Very briefly, the porphyry deposits are thought to result from emanations at the end of a
magmatic phase, and in this area are likely to date from the late Eocene or early
Oligocene. In a typical porphyry, alteration zones occur outward in annular fashion from
a potassic core through combinations of argillic, sericitic and propylitic alterations, which
are often modified by structure, by host lithologies or by multiple phases of
mineralization. Deep leaching of the Atacama porphyries has removed virtually all
metallic minerals from surface outcrops, focusing importance on interpretation of
alterations and relict mineral castings in a highly weathered environment. In the case of
the Escudo property, however, outcrops over the area of geophysical anomalies are
extremely limited in any case.
This deep leaching is one of the more distinctive and economically important
characteristics of the copper porphyry deposits of the Atacama Desert, thought to be the
result of climatic conditions around the early Miocene. While this has made them
difficult to detect, and leads to costly initial stripping, it is the resulting secondary
enrichment blankets, dominantly of chalcosite, which have made them such valuable
targets. Although variable in depth, this mineralization typically begins two to three
hundred meters below the present surface, and may be deeper in areas detrital accum
ulation.
EXPLORATION
In view of the depth of leaching and overburden, an induced polarization survey is the
only serious option for detecting disseminated mineralization at depth. Given the poor
conductivity of the surficial layers in the Atacama Desert, this is not a simple task. The
soils must be soaked with water for suitable contacts, and considerable currents and
electrode spacings must be employed for the required deep response patterns.
Four lines of induced polarization and resistivity measurements (totaling 43.2 km.) were
run in an east-west direction across the main body of the Escudo Property by Quantec
Geophysica Limitada. The resulting report, by their senior geophysicist Joe Jordan, was
submitted in April, 2004. Relevant parts of this report are appended (Appendix I) with
profiles of polarization and conductivity estimates, and readers are directed there for the
more technical parameters of the survey. Those aspects considered important for
interpreting the survey results are discussed here.
10
The lines were laid out using a combination of chaining and GPS (Provisional South
America 1956 Datum). A Zonge GDP-16 receiver was employed with a 30 kWatt
generator and a base 0.25 Hz, frequency domain signal. A dipole spacing of 300
meters was used, expanded through six separations. Two truckloads (about 16 thousand
liters) of water were required to produce appropriate electrical contact in the dry soils,
and satisfactory amperages were achieved.
The instrument used automatically removes electromagnetic coupling effects, using

higher harmonic frequencies. This allows the operator to monitor repeatability of the
results while in the field. To pass from the raw, decoupled data to cross-sections of
resistivity and chargeability, a mathematical procedure known as inversion must be
applied. There are, however, no unique solutions, and it should be kept in mind that a
great number of possible chargeabilityconductivity distributions will yield any given
set of measurements. The computer program used is from the University of British
Columbia Geophysical Inversion Facility, which seeks a solution with the simplest
structure in two dimensions.
11
x 3668 x 3980
92
x 3618
37
50
x 4057
91
x 3663
35
x 3707
00
89
N
x 3506
88
x 3645
x 3881 x 3848
x 3638
87
x 3804
x 3734
3750 Cerro El Chaco
x
x 4782 5045
0 x 4620
375
7186 42 CHACO
5 0
VOLCANO
x 3517 47 50
85 x 4710
3500
84 x
x 3723 4213 x 4459
83 x 4147
x 3642
x 3957
82
4104
Cerro
Qu Amarillo
81 eb 4078
x 3775 r ad
a
x 3759
37 50
x 4077
x
3710 Ch
80 aco Sur
co
375 Sur ha
aC
0
ra d
eb
Qu
3750
79
x 3853
78
x
77 4203
41
50
x 3906
x 4204
76
x 3653
75
x 3852
74
73
x 4202
Cerro Creston
37
72 x
50
4147
x 4053
x 4525
71
x 4570
x 4061
x 4522
x 3802
70
91 92 93 94 95 96 97
69
x 4061 x 4363
77 78 79 480 81 82 83 84 85 86 87 88 89 90
LEGEND INDUCED POLARIZATION SUMMARY
IP LINE Polarizability at depth
Decoupled Inversion, Plan View
(Note gap between line pairs) > 2.0
> 3.0 0 1 2 3 4 Based on survey by Quantec Geofisica Ltda.
Kilometres Date: Aug, 2004 Figure No. 3
12
x 3668 x 3980
92
x 3618
37
50
x 4057
91
x 3663
35
x 3707
00
89
N
x 3506
88
x 3645
x 3881 x 3848
x 3638
87
x 3804
x 3734
3750 Cerro El Chaco
x
x 4782 5045
0 x 4620
375
7186 42 CHACO
5 0
VOLCANO
x 3517 47 50
85 x 4710
3500
84 x
x 3723 4213 x 4459
L
NE
83
DEEP
AN
x 3642 LOW x 4147

CH
(FAULT) x 3957
82
4104
Cerro
Qu Amarillo
81 eb 4078
x 3775 r ad
a
x 3759
37 50
x 4077
x
3710 Ch
80 aco Sur
co
375 Sur ha
aC
0
ra d
eb
Qu
CHANNEL
3750
79
x 3853
78
x
77 4203
41
50
x 3906
x 4204
76
x 3653
75
x 3852
74
73
x 4202
Cerro Creston
37
72 x
50
4147
x 4053
x 4525
71
x 4570
x 4061
x 4522
x 3802
70
91 92 93 94 95 96 97
69
x 4061 x 4363
77 78 79 480 81 82 83 84 85 86 87 88 89 90
LEGEND LOW RESISTIVITY FEATURES
FROM INVERTED DATA
IP LINES
0 1 2 3 4 Based on survey by Quantec Geofisica Ltda.
Kilometres Date: Aug, 2004 Figure No. 4
13
SAMPLING METHOD AND APPROACH
Eleven rock chip samples were taken during the property examination. Most of these
were of hydrothermal alteration products, and were taken mainly to test for precious
metals. Although vein deposits are often found peripheral to copper porphyries, this
sampling should not be viewed as part of the evaluation of Escudo as a possible porphyry
target.
SAMPLE PREPARATON, ANALYSIS AND SECURITY
All samples were taken by the author and delivered by him to the ALS-Chemex
Laboratory in Antofagasta. Here they were crushed, and following an aqua regia
extraction, gold was measured by induction coupled plasma--mass spectometer (ICPMS)
and 30 other elements by conventional ICPAES. The laboratory uses both standards and
blank samples for control. Sample descriptions and pertinent analyses are given in
Appendix III.
ADJACENT PROPERTIES
The Escudo Property lies in the segment of the Chilean Copper Belt between the
Escondida and El Salvador Deposits. Just 50 kilometers south-southwest of the property
is the Exploradora copper porphyry, which has been drilled and is being held by the
Chilean Government under CODELCO. Reserves have not been released, but it is
reported to be in excess of 100 million tons. There are also a number of precious metal
deposits and prospects in the area (Boric et al, 1990; Multinational Andean Project,
2001), the most prominent of which is the Vaquillas silver mine (now closed) to the west
northwest.
With respect to immediately adjacent ground, the Chilean subsidiary of Phelps Dodge
Corporation holds the territory on the south, and since the time of staking of Escudo,
BHP- Billiton has taken the ground to both east of north. There is also a large holding of
CODELCO to the northeast.
INTERPRETATIONS AND CONCLUSIONS
The three-point decoupled inversions profiles (effectively chargeability cross sections)

are shown with the abbreviated geophysical report of Appendix I. All four lines show a
strong anomaly of roughly 6.5 km width, starting at a depth of 300 to 400 meters. The
southernmost line also shows a second anomaly at its east end, which appears to be
smaller (1.5 km.) but may continue beyond the survey line. A summary of the IP
anomalies at depth are shown in Figure 3, and the resistivity features located in Figure 4.
14
The lines have been run in two pairs, with the northern pair separated by 1.5 km. and the
southern by 1.0 km. Between these pairs there is a 3.0 km. space, which makes it
difficult to trace structures in plan view with any certainty. It would appear, however,
that the anomaly extends north-south over the full 5.5 km. distance between the
outermost lines. The anomaly does appear to be reduced on its western side in the
southernmost line, although this line itself extends two kilometers less in that direction.
These geophysical anomalies are fully compatible with a large porphyry deposit which
has been leached to depth. In the center two lines there is even a central core to the
anomaly of slightly reduced chargeability, which might correspond to a central potassic
alteration zone, and one line shows a kilometer wide anomaly above this core, which
might be interpreted as secondary enrichment. This pattern has, in fact, been observed in
other copper porphyry deposits. Jordan (2004) has analysed the similarities of this
response to those from the 200 line kilometers of IP surveys over the deposits of the
Collahuasi camp, their data having been released. Some of the similarities are striking.
The abstract and summary of that report are given in Appendix II.
There are, however other interpretations which must be kept in mind. To begin with,
there is some possibility that the polarizability is due to some lithology other than a
porphyry. The most likely culprit in this region would be pyritic black shales, but in that
case the zones of chargeability and low conductivity should match, which they dont.
Large zones of epithermal alteration are known to be associated with fractures in this
general region, and host some important precious metal deposits. The 300-400 meter
geophysically barren zone above the anomalies may represent leaching of sulfides for
secondary enrichment, or it may be some lithology which prevented leaching. And
finally, even if the geophysical anomaly is the result of porphyry mineralization, it is not
necessarily with economic copper grades.
Some information is also available in the conductivity data. The low resistivity anomaly
which occupies much of the northern two lines is best interpreted as a wide band of
multiple faults, running in a north northeast direction. This apparently locates a regional
fault system which has been encountered in other geophysical surveys, is visible in
satellite photos, and was observed by the author in the field in the form of abruptly
upturned strata where exposed by wash gullies. As discussed above, the geophysical
report suggests that this corresponds to the splay of the West Fissure running down the
east side of the Domeyko Range. The structures may appear to fade out at depth in the
resistivity profiles, but this is due to rapidly decreasing resolution of structural detail
downward. The other intriguing feature on the resistivity sections, is an isolated, highly
conductive channel which appears in all four lines. It is quite large, being roughly a
kilometer wide and half that in vertical extent. On the northern lines, it runs above the
eastern part of the polarization anomaly, and on the southern lines it coincides with the
previously mentioned anomaly above the central core. It might be simply a buried
channel carrying saline (conductive) waters. It might also be connected in some way
with secondary enrichment. A third possibility is that it might be one of the exotic
copper channels such as the Turquesa deposit adjacent to El Salvador, in which heap-
leachable copper minerals have been deposited in paleo-channels draining weathering
15
copper porphyries (Munchmeyer, 1996). Field examinations over this anomaly showed
no physical features, but there appeared to be an unusual amount of argillic alteration in
the nearby surface float.
To sum up the results of the geophysical survey, they are exactly what is to be expected
over a large, buried and deeply leached porphyry copper deposit in the Atacama Desert,
although as always, there are other possible interpretations.
The sample composites taken did not yield significant precious metal values, the most
prominent anomalies being in antimony. These are presented in Appendix III, but are not
relevant to evaluation of the property as a porphyry copper target.
RECOMMENDATIONS
Historically, all induced polarization anomalies of significant size associated with the
West Fissure fracture belt have been drilled, and there is no doubt that Escudo is a viable
drill target. It must be realized, however, that while the geophysical anomalies associated
with porphyry deposits may be large, the zone of economic copper concentration tends to
be relatively small (typically one square kilometer) and often elusive. Hence it will be
necessary to plan for a program of at least 20 drill holes, and to gather as much
information in advance as possible in terms of further geophysical surveys.
A two phase program of exploration is therefore recommended. The first being to

complete testing of the property with induced polarization, and the second being drilling.
While it is customary to specify that the second phase is dependent on the results of the
first, in this case it is difficult to see how drilling would not be recommendable in view of
the present data, and the geophysics is viewed more as a method of determining the best
placement of drill holes.
Recommended IP Surveys
It is recommended that induced polarization surveying of the property be completed at a
line spacing of roughly a kilometer. This would include
Line 7185 North-- 9 km.
Line 7181 12 km.
Line 7180 12 km.
Line 7177 9 km.
Line 7176 9 km.
Line 7175 6 km.
Line 7174 6 km.
TOTAL 63 line kilometers.
With some leeway for mobilization, etc., the cost for the Zonge instrument survey is $900
per kilometer or $U.S. 56,700.
16
In addition to the Zonge, there is a Titan instrument available. This does 5 km. arrays
with 25 electrodes at each setting, giving greater depth penetration, better detail, and
additionally collects magneto-telluric data at night. At a price (including mobilization) of
roughly $2500 per line kilometer it is not recommended for the main survey, but would
be very useful in areas of greatest potential as drill targets, based on the Zonge data. I
would therefore recommend budgeting four sets (ie. 20 km) of Titan work, estimated at
$US 50,000.
Estimated cost of Geophysical Phase $US 106,700.
With a 15% contingency $US 122,700
RECOMMENDED DRILLING
A program of 20 reverse circulation drill holes is envisioned in this phase, the objective
being to find a zone of secondary copper enrichment, and if possible to make an initial
evaluation of its thickness, grade and the tenor of underlying sulfide mineralization.
Given the altitude, even with an auxiliary compressor it will be possible to drill reverse
circulation holes to only roughly 500 meters depth. This will cost about $US 27,000 per
hole. That should be sufficient depth to determine if the oxides above the sulfide zone
contain appreciable copper. If so, it may be necessary to continue down another two
hundred meters using NQ diamond drilling to evaluate both the oxide and upper sulfide
zones. This would cost only slightly less then the original hole, so that it would
effectively count as two holes for purposes of budgeting.
17
BUDGET ESTIMATES FOR DRILLING $U.S.
Environmental impact study, permitting 13,000

Mobilization and demob. 15,000
Drilling contract 540,000
Access and drill pads (Grader for 50 hrs.) 12,500
Geologist, two and a half months 30,000
Geological assistant 12,500
Copper assays, transport (150 at $24.00) 3,600
Truck rental and upkeep 7,000
Camp and logging supplies, storage 2,000
Food, supplies for geological crew 6,500
Transportation and report 7,500
Contingency (15%) 97,400
SUBTOTAL $US 747,000
In addition, there is the matter of upkeep for the Escudo Property claims, which is
expected to cost approximately $18,000 to March of 2005, with approximately half of
this owing in taxes on that month. (Numbers have been rounded to the nearest hundred
dollars.)
Phase two total cost estimate $US 765,000
TOTAL ESTIMATE FOR BOTH PHASES $US 887,700
Signed & Sealed
Dated: November 16th, 2005 _________________

Richard Culbert
18
BIBLIOGRAPHY
Boric, R.; Diaz, F. and Maksaev,V. 1990 Geologia y Yacimientos Metaliferos de la

Region de Antofagasta. Servico National de Geologia y Mineria, Boletin 40, 246 p.
Camus, F. 2003 Geologia de los Sistemas Porfiricos en los Andes de Chile. Servicio
National Geologia y Mineria. 267 p.
Cornejo, P.; Tosdal, R.; Mpodozis, M.; Tomlinson, A.; Rivera, O. and Fanning, M. 1997
El Salvador, Chile Porphyry Deposit Revisited; Geologic and Geochronologic
Framework. International Geology Review. V39 p.22-34.
Jordan, J. 2004 Geophysical Report on the Induced Polarization and Resistivity Surveys
at th Escudo Project, Region II, Chile.
Jordan, J. 2004a Comparison of IP/Resistivity Data from Collahuasi/Ujina Mine with the
Escudo Prospect.
Munchmeyer, C. 1996 Exotic Deposits-- Products of Lateral Migration of Supergene

Solutions from Porphyry Copper Deposits. Soc. Economic Geologists, Special Publ. #5,
p.43-58
Multinational Andean Project, Publication #2. 2001 Mapa Metalogenico de la Region

Fronteriza entre Argentina, Bolivia, Chile y Peru. 219 p.
Naranjo, J. and Puig, A. 1984 Hojas Taltal y Chanaral, Regiones de Antofagasta y

Atacama. Servicio National de Geologia y Mineria. Carta Geologica de Chile #62-63.
140 p. and map at 1:250,000.
Naranjo, J. and Cornejo, P. 1992 Hoja Salar de la Isla. Servicio National de Geologia y
Mineria. Carta Geologica de Chile #72. 112 p. and map at 1:250,000.
Richards, J.; Boyce, A.; and Pringle, M. 2001 Geological Evolution of the Escondida
area, Northern Chile; a model for Spatial and Temporal Localization of Porphyry Cu
Mineralization. Econ. Geol. V96 p.271-305.
Richards, J. 2003 Tectonic and Magmatic Precursors for Porphyry Cu-(Mo-Au) Deposit
Formation. Econ. Geol. V98 p. 1519-1533.
SERNGEOMIN 1992 Carta Magnetica de Chile. Hojas Taltal--Salar de la Isla. #28-31 at

1:250,000. Sevicio National de Geologia y Mineria.
Sillitoe, R. 1989 Copper Deposits and Andean Evolution. Chapter 22 in Geology of the
Andes and its Relation to Hydrocarbon and Mineral Resources: Circum-pacific Council
for Energy and Mineral Resources. Earth Science series V 11, p. 285-311.
19
RICHARD CULBERT; Ph. D., P. Eng.

MINING EXPLORATION CONSULTANT
P.O. Box 9, Gibsons

B.C. Canada, V0N1V0
Ph/FAX 604 886 0919
sn3102@sunshine.net
CERTIFICATE OF AUTHOR
I, Richard Culbert; Ph.D., P.Eng. do hereby certify that:
1. I am a private consultant, with office address as above.
2. I graduated with a degree in Geological Engineering from

The University of British Columbia in 1963, and I obtained
a doctorate from the Department of Geophysics from the
same university in 1970.
3. I am a member of the Association of Professional Engineers

and Geoscientists of British Columbia.
4. I have worked as a geologist for a total of 34 years since my

graduation from university.
5. I have read the definition of qualified person set out in National

Instrument 43-101 (NI-43-101) and certify that by reason of my
education, affiliation with a professional association (as defined in
NI 43-101) and past relevant work experience, I fulfill the require-
ments to be a qualified person for the purposes of NI 43-101.
6. I am responsible for the preparation of all sections of the technical

report titled: Technical Report for an Induced Polarization Survey and
Structural Interpretation of the Escudo Property, Chile,
and dated: November 16th, 2005, relating to the Escudo Property, (the Technical
Report). I visited the Escudo Property in July of 2004.
7. I have not had prior involvement with the property that is the subject
of the Technical Report.
8. I am not aware of any material fact or material change with respect

to the subject matter of the Technical Report that is not reflected in the
Technical Report, the omission to disclose which makes the Technical
Report misleading.
20
9. I am independent of the issuer applying all of the tests in section 1.5 of

National Instrument 43-101.
10. I have read National Instrument 43-101 and form 43-101F1, and the
Technical Report has been prepared in compliance with that instrument
and form.
10. I consent to the filing of the Technical Report with any stock exchange
and other regulatory authority and any publication by them for regulatory
purposes, including electronic publication in the public company files on
their websites accessible by the public, of the Technical Report.
Dated: October 14th, 2004.

Signed & Sealed
_________________
Richard Culbert
21
APPENDIX I
THE QUANTEC GEOPHYSICAL REPORT (abbreviated)
for their
INDUCED POLATIZATIONRESISTIVITY SURVEY
OVER THE ESCUDO PROPERTY
22
Geophysical Report
on the
Induced Polarization and Resistivity Surveys
conducted at the
Escudo Project
Region II, Chile
on behalf of
Condor Resources
QGA Project: C-469 Joe Jordan
Antofagasta, Chile
April, 2004 Quantec Geofisica Ltda
Summary
During February 2004, Quantec Geofisica Limitada (Quantec) conducted induced

polarization (IP) and resistivity surveys on behalf of Condor Resources (Condor). The
surveys were conducted on the Escudo Project located approximately 250 km southeast
of Antofagasta in Region II, Chile. The objective of the IP survey was to outline zones
with the potential to host deeper porphyry copper mineralization.
The IP survey was conducted with the dipole-dipole array and a dipole spacing of 300
m expanded through 6 separations (n~ to 6). The transmitted signal was a frequency -
domain square wave with a frequency of 0.25 Hz. The decoupled phase (approximately
equivalent to chargeability) and resistivity data were inverted with a 2D inversion
program from the University of British Columbia.
A large IP phase anomaly measuring approximately 3.5 km wide by 5.5 km long and
open to the north and south was delineated during the survey. The anomaly is deep
(300 m or more) and located mostly under alluvial cover. Resistivities are variable
within the anomalous IP zone, suggesting that the elevated phase values may be caused
by sulphide mineralization from hydrothermal alteration although the true source of the
IP anomalies is not known definitively. A strong, deep conductor with a NNE trend is
interpreted as a major structure and possibly a splay of the West Fissure fault zone. A
narrower, flay-lying conductive body observed in the central portion of the main IP
anomaly may be caused by several different features such as a structure, an unusually
23
shaped conductive lithologic unit, an old canyon or topographic low that has since been
filled with conductive alluvium and/or conductive ground water, or possibly a zone of
secondary enrichment associated with a porphyry system.
Summary 23
Table of Contents
2.0 Induced Polarization Survey 25
2.1 Survey Equipment 25
2.2 Survey Parameters 25
2.3 Grid 25
2.4 Survey Coverage 25
2.5 Survey Procedures 26
2.6 Inversion 26
4.0 Results
4.1 Regional Setting 28
4.2 IP Inversion and Maps 29
4.3 Phase and Resistivity Anomalies 29
4.4 Interpretation of Anomalies 30
5.0 Conclusions 32
24
2.0 Induced Polarization--Resistivity Survey
2.1 Survey Equipment
Receiver: Zonge GDP-16

Transmitter: Zonge GGT 30 kWatt
Generator: Wisconsin 30 kWatt
2.2 Survey Parameters
Transmitted Frequency: 0.25 Hz, Frequency domain

Parameters: 300 m, N=1-6, pole-dipole
Gridding: gridded by Quantec with chaining and GPS
Decoupled Phase: calculated with GDP-16 3-point algorithm
Collahuasi, Ujina and several other large copper porphyry deposits in northern Chile have been
surveyed with the identical equipment, array, and survey parameters utilized at the Escudo
prospect.
2.3 Grid
The grid was positioned by Quantec using a combination of GPS and chaining. The datum was
Provisional South America 1956. Absolute UTM coordinates are thought to be accurate to a
precision of about 10 m. Pickets are labeled in the field at 300-m intervals.
2A Survey Coverage
IP Survey Coverage in UTM coordinates

Line Start End Total
7178000N 481400E 492800E 11.4 km
7179000N 479000E 492800E 13.8 km
7182000N 479000E 488000E 9.0 km
7183500N 479000E 488000E 9.0 km
Total 43.2 km
25
2.5 Survey Procedures
The survey was conducted with the dipole-dipole array and a dipole spacing of 300 m
expanded through six separations (n= 1 to 6). Contact impedances were high at the
project. To reduce the contact impedances to adequate levels, at least 3 large holes
were dug at each site. Each hole was lined with aluminum foil and wetted with
approximately 20 to 100 liters of water. Water was delivered to the site with an 8000
liter water truck. Two truckloads or a total of 16000 liters of water were used to
prepare the 4 survey lines. With this preparation, transmitted currents averaged about 6
amperes with a range from 1 to over 10 amperes. Contact impedances were highest on
the northernmost line, which was lower in elevation and crossed a section of partially
exposed ignimbrite (welded volcanic ash).
A minimum of 2 readings with 15 to 25 cycles was acquired at all sites. Data

repeatability was generally excellent due to the high currents, good contact
impedances, and relatively high resistivities. In several areas where noise was
observed, a third or fourth reading was acquired if all phase values did not repeat
closely.
The transmitted signal consisted of a frequency-domain square wave (100% duty

cycle) at a frequency of 0.25 Hz. Additional fundamental frequencies of 0.5, 1, and 4
Hz were also acquired. In additional to the fundamental frequency (1st harmonic), the
GDP46 receiver automatically records the 4 harmonic frequencies (3rd, 5th, 7th and
9th). Electromagnetic (EM) coupling effects can be removed using the three-point
decoupling method, which employs the primary frequency and the third and fifth
harmonics. This is done automatically by the GDP-16 so that the operator can monitor
the accuracy and repeatability of each measurement in the field. For interpretation, the
three-point decoupled phase is generally utilized. The amplitude of the decoupled
phase is generally 10% to 20% higher than time-domain chargeability measurements
made with typical integration windows.
2.6 Inversion
The pole-dipole data were inverted with a 2-D IP and resistivity inversion program
called "DCIP2D (version 3.2)" from the University of British Columbia Geophysical
Inversion Facility. Results of the inversion are depicted as cross-sections of the 3-point
26
decoupled phase and resistivity versus elevation. The cross sections allow for easier
interpretation than pseudo-sections.
It is important to understand that most geophysical inversions do not produce a

unique solution; that is, there can be a multitude of different models that fit the
data equally well. To help reduce the non-uniqueness of the solutions, the data
are fit to a specified or calculated error. The error associated with each
measurement is not well known and must be estimated. Preliminary error
estimates for the resistivity (voltage) and decoupled phase were calculated as
follows:
Ev = - .000005 (Volts/ampere) + .055Vp

Em =0.35 (mV/V) + (Ev/Vp.- .045) M
Where Ev is the estimated error of the voltage measurement,
Vp is the measured primary voltage (V) normalized by the current (a)
Em is the estimated error of the IP measurement, and
M is the measured IP value (3 point decoupled phase).
Some of the error estimates were then manually edited where an analysis of the data
and anomaly pattern suggested that the noise and error estimate should be either higher
or lower.
During the inversion, an objective function is minimized so that the solution contains a
minimum amount of structure. The mesh for the inversion was designed with 3 cells
between each electrode and a sufficient padding of cells on the sides. Because of the
elevation variation along the lines, the vertical portion of the mesh was designed with a
fine mesh so that the variation is topography could be well accounted for.
Specific inversion parameters that were used include:

Topography: from DGPS survey
Mesh: manually designed for each line to optimize results and account for topography
Chi-factor: 1
Error estimates of voltage and chargeability: supplied (see above)
Model Objective function: default values (default,1,1), no weighting
Starting resistivity model: homogeneous half-space
Starting chargeability model: homogeneous polarization, resistivity from inversion
27
4.0 Results
4.1 Regional Setting
The Escudo Project is located near the West Fissure fault that intersects or passes close
to many large copper porphyry deposits in northern Chile such as Collahuasi, Quebrada
Blanca, El Abra, Chuquicamata, Zaldivar, and Escondida. South of Escondida, the
West Fissure fault zone splits at Domeyko mountain range. One splay of the fault zone
passes on the west side of the range, the other splay passes to the east. To date, most
exploration has been concentrated on the west splay. The Escudo project is located on
the east splay. The Rio Frio gold prospect is located north of the Escudo Project on the
east splay of the fault zone. During the IP survey, a major mining company was
conducting its own IP survey immediately south of the Escudo property, also on the
east side of the fault zone.
Several other mines and advanced prospects occur close to the Escudo Project, for
example:
Guanaco Mine: large, rich gold mine still producing

Rio Frio Area: gold prospect
Vaquillas Mine: silver mine, not producing
Cenizas Prospect: copper-gold porphyry prospect now held by Mena Resources
Bayas Prospect: porphyry drilled by Lucero Resources, weak copper
Sorpresa Prospect: porphyry gold target drilled extensively by Codelco
Macromin Prospect: porphyry drilled by Lucero Resources, weak copper
Exploradora: copper porphyry held but not yet developed by Codelco. Reserves not
published but reportedly over 100 million tons.
Juncal Mine: large rich historic silver mining area. Now held by Silver Standard.
Polvora Prospect: porphyry mineralization, weak copper
All the above mines and prospects are associated with hydrothermal alteration and
significant sulphide mineralization that would cause an IP anomaly. Other than
hydrothermal alteration, only one other source of sulphide mineralization is known in
the district: black shale with disseminated pyrite. The black shales typically are highly
conductive and highly chargeable.
28
4.2 IP Inversions and Maps
The inverted IP and resistivity sections attempt to show the actual locations of the
chargeable and resistive features. Because the inversion is constrained to be smoothly
varying, there is some smoothing in areas where there is an abrupt discontinuity.
Inflections or gradients in the inverted sections are often important.
With 300-m dipoles, resolution of narrow features is limited; however, larger features
can be detected to depths in excess of 500 m. There is a gradual loss of resolution as
depth is increased. Thus, when observing the plan view elevation slices of the inverted
sections, it is important to understand that while narrow features are defined at the
shallow depths, they will be poorly defined at greater depths.
4.3 Phase and Resistivity Anomalies
Broad, strong IP anomalies are observed on each of the four lines surveyed at Escudo.
The anomalous zones are generally deep (300 m or more) and broad (3.5 km to 5 km
wide). The main part of the IP anomaly appears continuous along 5.5 km of strike
length (7178000N to 7182500N). Currently open to the north and south, the main IP
anomaly appears to have an elliptical shape measuring approximately 3.5 km wide by
5.5 km long with a tilt to the NNW. Several smaller IP anomalies occur on both the
west and east sides of the larger, central anomalous zone. Although the IP anomalies
are best observed on the inverted sections, the anomalies have been sketched on a
Landsat image (Figure 4).
The IP anomalies are associated with both high and low resistivities. On the northern
lines, the main IP anomaly flanks a deep, strongly-conductive zone. This conductive
zone also appears to be present on the western end of Line 7179000N, suggesting a
NNE strike. This conductive feature is on trend with structures shown on government
geology maps both north and south of the project area. This trend is thought to
represent a splay of the West Fissure Fault zone and is thought to extend through or
close to the Exploradora copper deposit located 35 km to the south.
A "perched" flat-lying conductor with limited depth extent occurs in the center of the
IP anomalies on Lines 7178000N, 7179000N, and 7182000N near 484500E between
elevations 3300 and 3400 m. IP anomalies underlie and flank this conductor at depth.
A similar "perched" conductor is present on Line 7183500N at 485300E, offset
approximately 1 km to the east from the trend outlined on the southern three lines.
Weaker IP anomalies underlie and flank the conductive anomaly on Line 7183500N.
29
High-resistivity zones surround the conductor, but the IP anomalies appear to extend
into the resistive areas.
A moderately strong deep IP anomaly associated with a deep, moderately conductive

zone is observed on the east end of Line 7178000N. Hills exhibiting color anomalies
indicative of hydrothermal alteration are observed about 4 km to the south.
4.4 Interpretation of Anomalies
At the Escudo Project, the most likely source of the strong IP anomalies is sulphide
mineralization. Two types of sulphide mineralization occur in the district. The most
common form is caused by hydrothermal alteration from porphyries and/or from large
structures. There are also several sedimentary units that host disseminated pyrite, such
as black shales. Such sedimentary units are thought to occur about 10 km northeast of
Exploradora. Other occurrences within the district are not known, but possible.
Typically such sedimentary units are very chargeable and very conductive. Anomalies
often exhibit high phase values of over 50 mrad and resistivities less than 10 ohm over.
No such anomalies were observed at Escudo, and anomalies occur in both resistive and
conductive areas. Consequently, it is probable that the IP anomalies are caused by
sulphide mineralization associated with hydrothermal alteration.
The main IP anomaly at Escudo is approximately 3.5 km wide and 5.5 km long and
open to both the north and the south. IP anomalies associated with many of the large
copper deposits in northern Chile typically measure on the order of 5 km by 5 km and
are generally circular or elliptical. Thus, the dimensions of the IP anomaly are
consistent with dimensions of other porphyry anomalies. Since the anomaly is
currently open to both the north and the south, additional survey coverage will be
needed to better define the dimensions.
Line 7179000N shows a very interesting IP anomaly with two deeper phase anomalies
at 483500E and 486300E and a shallower anomaly in the center. This sort of pattern
would be expected over a zone with an enriched zone (shallow anomaly) underlain by
primary mineralization (weaker anomaly) and flanked by pyrite halos (stronger deeper
anomalies). Similar but less well-defined anomalies are observed on Line 7178000N
and 7182000N. At 7183500N, the phase anomaly is high across the zone, possibly
indicating that the line is traversing a pyrite halo on the northern end of the system.
While these anomalies are characteristic of a porphyry system, they may also be caused
by a combination of structural or lithologic features that happen to have the expected
dimensions, patterns and responses as a porphyry system. Additionally, the presence of
sulphide mineralization does not guarantee the presence of copper minerals.
30
The large deep conductor with the NNE trend identified on the west ends of the 3
northern lines is interpreted as a major structure that is likely a splay of the West
Fissure fault zone. From geology maps, landsat photos and previous experience in the
area, this structure is thought to be continuous from Exploradora northward to Escudo
and then towards Rio Frio, on the east side of the Domeyko Range.
The "perched" conductor on the other hand does not exhibit the same depth extent as
the deep NNE conductor. This perched conductor can be interpreted several ways:
Like the deep conductor, the perched conductor could also represent a structure or
fault, although the shape of the anomaly would be considered atypical for such a feature.
A narrow, relatively thin conductive lithologic unit could be present, although no
outcropping rocks in the area have this characteristic.
A flat-lying conductor with limited lateral extent is observed over some secondary
enrichment zones associated with major deposits. Typically, IP anomalies will underlie (ie.
primary ore) and flank (ie. pyritic halo) the enriched zone, similar to anomalies observed on Line
7178000N and 7179000N. However, the perched conductor anomaly is present over a strike
length of at least 4 km, and possibly more depending on interpretation of the anomaly on
7183500N. Such strike lengths are unusual.
Another possible interpretation is that the conductor represents an older canyon that has
since been filled with alluvial material (possibly clay) and conductive ground water. This could
explain the conductor, but the underlying and flanking IP anomalies would require explanation.
A moderately strong phase anomaly coincident with a moderately conductive zone on

the east end of Line 7178000N near 491000E is located immediately north of an
altered zone that shows color anomalies typical of hydrothermal alteration. The
anomaly on 7178000N is either deep (more than 400 m) or indicative on an off-line
anomaly occurring south of the survey line. Additional survey coverage to the south
will help define this anomaly.
31
5.0 Summary and Conclusions
The IP data from four long lines at the Escudo property have outlined a strong phase IP
anomaly measuring approximately 3.5 km wide by 5.5 km long. The elliptical
anomalous zone is tilted toward the NNW and is open to both the north and the south.
Resistivities are variable within the anomalous IP zone, suggesting that the elevated
phase values may be caused by sulphide mineralization from hydrothermal alteration
and structures rather than from sedimentary lithologic units that host disseminated
pyrite. Sedimentary units that outcrop along the survey lines are associated with weak
IP anomalies. The true source of the IP anomalies is not known definitively; however,
the dimensions, patterns, and amplitudes are consistent with anomalies observed over
other porphyry systems.
A strong, deep conductor with a NNE trend is interpreted as a major structure and
possibly a splay of the West Fissure fault zone.
A narrower, flay-lying conductive body observed in the central portion of the main IP
anomaly may be caused by several different features such as a structure, an unusually
shaped conductive lithologic unit, an old canyon or topographic low that has since been
filled with conductive alluvium and/or conductive ground water, or possibly a zone
secondary enrichment associated with a porphyry system.
32
APPENDIX II
ABSTRACT AND SUMMARY FROM
A COMPARISON OF IP RESPONSE OVER
ESCUDO PROPERTY WITH THAT OF THE
COLLAHUASI DEPOSITS
A REPORT BY JOE JORDAN

Chief Geophysicist with Quantec Geophysica Limitada.
33
Comparison of IP/Resistivity Data From Collahuasi/Ujina

Mine with Escudo Prospect
Bv: Toe Jordan, Quantec Ceofisica Limitada on behalf of Condor Resources August, 2004
Abstract
During exploration of the large Collahuasi /Ujina copper porphyry in northern Chile,
over 200 km of induced polarization (IP) and resistivity surveys were conducted by
Quantec Geofisica Limitada on behalf of Compania Minera Dona Ines de Collahuasi
(Collahuasi) from 1991 to 1994. These data outline the deposits very well, and the
discovery hole for the Ujina deposit was positioned on a resistivity target. During the
2002 SLG convention, Tony Watts of Falconbridge presented IP /resistivitv data
collected at Collahuasi and Ujina. Some of his plots are used here with permission.
The objective of this paper is to compare IP/ resistivity data acquired at the
Collahuasi District with data acquired over the Escudo Project in 2004 bv
Quantec on behalf of Condor Resources.
Results show that the Escudo IP and resistivity data are similar in dimension and shape
to anomalies observed over the Ujina and La Grande/Rosario (Collahuasi) deposits. At
Ujina, high phase values corresponding to the pyrite halo surround a zone of
moderately high phase values associated with the supergene and underlying primary
mineralization. A "perched" conductor is observed below the supergene enrichment. A
similar pattern with the phase anomalies and a perched conductor are also observed on
the southern section of Escudo.
At La Grande /Rosario, strong phase anomalies are associated with deep-rooted

conductors. At Escudo, a deep-rooted conductor with elevated phase values and
dimensions similar to the La Grande anomaly is observed.
The Ujina and La Grande/ Rosario IP anomalies measure approximately 5 km by 5 km.

The Escudo IP anomaly currently measures 5 km by 5 km, but is open to the north and
south.
Although the IP anomalies at Escudo could be caused by barren hydrothermal

alteration or an unusual distribution of formational pyrite, they could also be
representative of a porphyry system with dimensions similar to Ujina or La Grande/
Rosario. Consequently, further exploration at Escudo is warranted.
34
Summary
The IP data collected at the Escudo Project compare favourably with IP data acquired
over the Ujina and La Grande /Rosario copper porphyry deposits in the Collahuasi
District. The dimensions and distribution of the phase anomalies are similar. The
amplitudes of the phase values from the Collahuasi District are higher than Escudo.
Both the Ujina and Rosario/La Grande phase anomalies measure approximately 5 km
by 5 km. The phase anomaly at Escudo is currently approximately 5 km by 5 km, but is
open to the north and south.
At Ujina, a "perched" conductor that does not extend to depth is observed directly
under the supergene enrichment. At La Grande /Rosario, large deep-rooted conductors
are observed under both deposits. At Escudo, a perched conductor is observed in the
southern portion of the property and a deep-rooted conductor is observed in the
northwestern section of the property. Both anomalies have dimensions similar to the
anomalies observed in the Collahuasi District. The Collahuasi anomalies are more
conductive than the Escudo anomalies.
The similarity between the Escudo IP data and the Collahuasi District IP data suggests
that the data from Escudo are consistent with anomalies expected over a porphyry
system. The Escudo anomalies are located under alluvial cover and sediments;
consequently, the source of the anomalies is currently not known. Possible
interpretations of the Escudo anomalies include a mineralized copper porphyry system
with dimensions similar to those in the Collahuasi District, barren hydrothermal
alteration, or formational sulphide mineralization (pyrite).
IP anomalies under cover within the porphyry belt of northern Chile are scarce.
We are not aware of any other large, un-drilled IP anomalies similar to Escudo
within the northern copper porphyry belt. Further exploration of the Escudo
Property is warranted.
35
APPENDIX III
SAMPLE DESCRIPTIONS AND RESULTS
36
BRIEF DESCRIPTIONS OF ROCK SAMPLES COLLECTED

WITH UTM CO-ORDINATES
Sample East North Description
Esc 1 81635 83870 Siliceous breccia float

with sulfide cavities
Esc 2 81630 83180 Bluish silica with open
space cavities.
Esc 3 Silic. and argillic alt. float
above geophysical anomaly
Esc 4 85840 81400 Composite of silic., hematitic
& argillic alterations.
Esc 5 88250 78900 The 3 fracture system outcrop.
Quartz veins and selvage.
Esc 6 90690 78190 Black, fetid limestones
Esc 7 90690 78210 Aragonite veining with

unidentified grey mineral
Esc 8 88500 77100 Sheared rhyolite. Hematitic,
jarosite, relict sulfides.
Esc 9 88470 77050 Silicified fracture zones with
hematite filled vugs
Esc 10 85050 76770 Silicified and rusty shear in
a zone of argillic alteration
Esc 11 (85300 75220) Composite of rusty, siliceous
breccias in float
37
38
39

Escudo Project (Propiedad Libre)

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TECHNICAL REPORT FOR

AN INDUCED POLARIZATION SURVEY

AND STRUCTURAL INTERPRETATION

OF THE ESCUDO PROPERTY, CHILE.

A PORPHYRY COPPER PROSPECT

For: CONDOR RESOURCES INCORPORATED

By: Richard Culbert, Ph.D., P.Eng.

Survey Date: February, 2004

Field Examination: July, 2004

Report Dated: November 16th, 2005

TABLE OF CONTENTS Page

CONDOR RESOURCES INC.

Date: Aug, 2004 Figure No. 1

INTRODUCTION AND TERMS OF REFERENCE

The most important information on this property is the above-mentioned geophysical

PROPERTY DESCRIPTION AND LOCATION

The Escudo Property is comprised of 33 contiguous claims (Escudo 1-33) covering a

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRACSTRUCTURE

In conclusion, the Escudo Property covers a basin which appears to be a nexus of

90 Quebrada Chaco Norte x 4126

The instrument used automatically removes electromagnetic coupling effects, using

90 Quebrada Chaco Norte x 4126

90 Quebrada Chaco Norte x 4126

x 3642 LOW x 4147

SAMPLING METHOD AND APPROACH

SAMPLE PREPARATON, ANALYSIS AND SECURITY

INTERPRETATIONS AND CONCLUSIONS

The three-point decoupled inversions profiles (effectively chargeability cross sections)

A two phase program of exploration is therefore recommended. The first being to

BUDGET ESTIMATES FOR DRILLING $U.S.

Environmental impact study, permitting 13,000

Phase two total cost estimate $US 765,000

TOTAL ESTIMATE FOR BOTH PHASES $US 887,700

Signed & Sealed

Dated: November 16th, 2005 _________________

Boric, R.; Diaz, F. and Maksaev,V. 1990 Geologia y Yacimientos Metaliferos de la

Munchmeyer, C. 1996 Exotic Deposits-- Products of Lateral Migration of Supergene

Multinational Andean Project, Publication #2. 2001 Mapa Metalogenico de la Region

Naranjo, J. and Puig, A. 1984 Hojas Taltal y Chanaral, Regiones de Antofagasta y

SERNGEOMIN 1992 Carta Magnetica de Chile. Hojas Taltal--Salar de la Isla. #28-31 at

RICHARD CULBERT; Ph. D., P. Eng.

P.O. Box 9, Gibsons

I, Richard Culbert; Ph.D., P.Eng. do hereby certify that:

1. I am a private consultant, with office address as above.

2. I graduated with a degree in Geological Engineering from

3. I am a member of the Association of Professional Engineers

4. I have worked as a geologist for a total of 34 years since my

5. I have read the definition of qualified person set out in National

6. I am responsible for the preparation of all sections of the technical

8. I am not aware of any material fact or material change with respect

9. I am independent of the issuer applying all of the tests in section 1.5 of

Dated: October 14th, 2004.

THE QUANTEC GEOPHYSICAL REPORT (abbreviated)

INDUCED POLATIZATIONRESISTIVITY SURVEY

OVER THE ESCUDO PROPERTY

Induced Polarization and Resistivity Surveys

During February 2004, Quantec Geofisica Limitada (Quantec) conducted induced

2.0 Induced Polarization--Resistivity Survey

2.1 Survey Equipment

Receiver: Zonge GDP-16

2.2 Survey Parameters

Transmitted Frequency: 0.25 Hz, Frequency domain

IP Survey Coverage in UTM coordinates

2.5 Survey Procedures