QA/QC Protocols

Quality Assurance and Quality Control Protocols

Esperanza Silver Corporation

March 2008

by:
William D. Bond
Vice President, Exploration

Introduction

Assay or geochemical data acquired at any stage of exploration or development will ultimately determine if a project will become economically viable to exploit. Therefore, Esperanza Silver Corporation (Esperanza) and its affiliates have established Quality Assurance and Quality Control (QA/QC) protocols that standardize procedures for collecting samples and obtaining related information. By implementing these QA/QC procedures the resulting data can be verified and it’s integrity validated. This QA/QC document is updated from the QA/QC protocols issued in March, 2004 and are structured to assist in data verification conforming to Canada's National Instrument 43-101.

Sample Types and Relative Importance to QA/QC
There are various types of material that can be collected for analysis including soil, water, stream sediment, tailings, rock outcrops, core, and chips from drilling, waste dumps, and “ore stockpiles". Other possible sources such as tree bark, roots, leaves, etc. may also provide useful geochemical information significant to exploration programs. Regardless of the sample type, it is imperative that the project supervisor, manager or qualified person be responsible for implementing appropriate protocol procedures to ensure minimum QA/QC standards are followed. Sampling procedures for “grassroots” projects and more advanced properties, such as those where a “discovery” has been identified will vary. In general, QA/QC becomes critical after the initial discovery has been made and subsequent data will be used to determine if the project has economic merits (i.e. data is used for resource, reserve estimates or mine design applications). This document addresses standard protocol procedures to be followed when collecting data that will be used to evaluate and ultimately determine if the project meets minimum requirements  in order to be developed into a viable mining operation.

Quality Assurance Procedures

Sample Records for Rock, Soil, Drilling and Other Sampled Material
Numerous types of samples can be collected and each is unique to the intent of data acquisition. In many cases, sampled material will be used to establish geochemical signatures of a deposit that may enhance or guide exploration efforts. Other samples, specifically those used to quantify metal content, will be used for estimating resources and reserves. Regardless of the rationale for collecting the sample the following record for each should be compiled. This can be done in either a database or spreadsheet that will allow the data to be analyzed as is appropriate.

Sample Record
A record for each sample will be made that includes the following;

1.  
   1. Type of sample (rock, soil, dump, etc.)
   2. Collection method that includes channel, grab (representative or selective), chip (representative or selective), panel etc.
   3. Location, which includes the easting-northing coordinates datum and elevation (this can be derived from a map where the sample is marked or by any other appropriate manner such as GPS). Only “known points or locations” obtained from accurate surveying methods may be utilized for resource/reserve evaluation.
   4. Brief description (including lithology, alteration, or other pertinent information).
   5. Date sample collected.
   6. Person responsible for collecting sample (geologist, supervisor, manager, etc.)
   7. Elements analyzed including; method used (AA, ICP, etc), laboratory, etc.
   8. Geochemical or assay results for each element.
   9. Assay certificates from the appropriate laboratories will be kept on file for all analysis completed.

Sample Size
Samples collected, that are to be used for resource or reserve evaluation, should contain a minimum of 1kg of sampled material when appropriate. Exceptions may include narrow widths sampled in outcrop or core intervals where collecting a 1kg sample is impractical. However, in these cases the sample must be representative of the total material being assessed.

Sample Chain of Custody
All samples will be collected by Esperanza’s geologists, designated representatives, managers, supervisors or by trained personnel under the supervision of Esperanza’s geologists, designated representatives, managers, or supervisors. Samples collected will remain under the control of Esperanza or its designated representatives until shipped or delivered to the laboratory responsible for sample preparation or analysis. All samples that remain on site, prior to delivery to the laboratory, will be kept in a secure location not accessible by anyone other than approved personnel.

Core and Reverse Circulation, Sampling Methods
Core and reverse circulation (RC) drilling will be done by a reputable contractor responsible for completing the designated holes and collecting the core or cuttings. The contractor is solely responsible for sample recovery.

Core and RC Chain of Custody
Esperanza’s managers, geologists, supervisors or designated representative, who will be responsible for the security of the sampled material will pick up core or RC samples at the drill site and transport them to a secure site only assessible by designated Esperanza employees. Handling of the sampled material will only be done by Esperanza personnel or designated representative under their supervision. The secure site or storage facility will be locked when no Esperanza’s employees are present.

Core Logging Procedures
All core will be photographed with beginning, ending and intermediate intervals clearly marked on each box. Core will be photographed prior to sampling or any other procedures, that may disturb the initial orientation of the core as it was originally placed in the storage box or container.

The core will be logged in appropriate detail including identification of lithology, structure, alteration, mineralization and other notable characteristics. Percentages of core recovery and Rock Quality Descriptor (RQD) will be included in the log. The core recovery will be calculated based on each drill run (interval). The RQD calculation will be based on the total length of core sections recovered that are greater than 2.0 times the core diameter for each drill run or interval. Care should be taken in order to not include man-made breaks (i.e. to fit core in the box, etc.) opposed to natural breaks (resulting from structures, rock friability, etc.) when calculating the RQD for an interval.

Core Sampling
Intervals of core to be analyzed will be cut or split in half with one half being sent to the laboratory for analysis and the remaining half will be kept in storage for future reference or analysis if necessary.

RC Logging Procedures
All RC cuttings will be photographed with beginning, ending and intermediate intervals clearly marked on each box. RC cuttings will be logged in appropriate detail including identification of lithology, structure, alteration, mineralization and other notable characteristics.

Samples; General
All samples will be placed in bags and secured with a tie. Two means of identification will be used for each sample, one identification tag placed within the bag and either another tag affixed to the bag tie or the identification number clearly written on the bag. The laboratory receiving the samples will be given instructions to notify Esperanza if it appears the samples were tampered with or were damaged during shipment.  

All samples submitted to the laboratory, including pulps and rejects, should be kept in storage either at the laboratory or returned to Esperanza and put in a secured facility. Esperanza’s management will determine if and when certain samples may become irrelevant to the project and therefore request the disposal of these selected non-pertinent rejects and/or pulps.

Baseline Studies
Collecting baseline data to determine background geochemical information in the project area is critical for establishing previous contamination that may be a result of natural weathering processes or human influence. This baseline data should be collected at the time of project acquisition or prior to any significant exploration, that may influence the baseline results. Results from this information may greatly enhance Esperanza’s ability to obtain exploration and/or mining permits and reduce the risk of future liabilities and remediation efforts. Baseline data should be collected by an “environmental specialist” who is independent of Esperanza and is knowledgeable of the rules and regulations pertaining to such studies within the country it is undertaken.

Specific Gravity
Prior to any resource or reserve estimating procedures it will be necessary to determine the specific gravity (SG) for the rocks that may influence calculated tonnes. The variability of the SG for each rock type evaluated will partially determine the number of samples used to calculate the SG. Samples to be used for this analysis may be collected from outcrops (including underground exposures) or core sections. If oxide and sulfide phases occur within the same rock type (lithologic unit) separate SG analysis should be done on each.

Quality Control Procedures

Laboratories
Each project Esperanza undertakes will designate a laboratory that is to be used as its “primary” analytical lab. All initial analysis will be performed by the primary lab and check analysis of randomly selected samples will also be completed by a “secondary” laboratory. Other laboratories may be used to further validate results when necessary.

Pulp Replicate Analysis
Sample pulps produced during the laboratory sample preparation procedure are normally analyzed and then stored for future reference. These pulps should be re-analyzed, on a random basis, to determine reproducibility by a secondary laboratory. Proper pulp homogenization should result in geochemical results with little variability when compared to the original. It is recommended that approximately every 25th sample pulp be re-analyzed to estimate laboratory variability. This rate of replication can be reduced after it is determined that laboratory variability is minimal indicating sample preparation procedures are adequate.

Duplicates
Laboratory Duplicates
Laboratory duplicates are made when the laboratory makes two separate pulps independently from the same sample. This should be done by requesting the lab to pull the reject and make a separate pulp (independent of the original) to be analyzed using the same methods as the original. These samples are often referred to as A/B splits (taken from the same reject). Comparison of the two analyses will give an indication of valid laboratory preparation procedures and sample variability. Initially, about 10% of the samples submitted should be analysed based on A/B splits. Assuming little variability is noted, after a meaningful population has been analyzed, the number of A/B split duplicates can be reduced or checked periodically to make sure preparation procedures are adequately homogenizing the sample and replication of analysis is acceptable.

Field Duplicates
Collecting two independent samples from the same locale will give an indication of the randomness or homogeneity of mineralization that is naturally occurring (assuming sample prep and analytical error is minimized or is constant). The field duplicates may be derived from outcrop exposures, core, or RC cuttings. It is recommended that at least 50 duplicate samples be collected in order to estimate sample error related to metal distribution within the deposit. For drill programs involving RC and core, it would be appropriate to reproduce duplicates for around 5% of the samples by splitting the rock interval into two independent samples. Analytical results for field duplicates typically reflect a higher geochemical variability, than will be noted in Laboratory Duplicates.

Blanks
Blanks or samples without mineralization should be submitted with each batch of samples sent to the laboratory. The blank material should be collected from a location known to be devoid of any mineralization or purchased from a reputable supplier. Results from these samples will indicate if there is any contamination introduced during the sample prep or analytical procedures. Approximately one blank for every 50 samples submitted to the laboratory. If any significant contamination is noted the analystical laboratory will be notified and corrective measures taken to resolve the potential problem.

Certified Standards
Certified standards are sample pulps prepared, packaged, and certified to contain known values of certain elements. The standards are prepared by a reputable laboratory that has validated their content. It is recommended that at least two standards be used with metal content that are representative of the deposit. Ideally, one standard should represent the expected “mined” deposit grade and another that may represent a lower “cutoff” grade. In the early stages of exploration it may be more practical to prepare a high, medium, and low grade standard based on the known data at that time.

The evaluation of standard geochemical results is the most effective way to confirm laboratory accuracy. At least one standard included (i.e. one set of standards per 50 samples).

Data Verification
The data verification process is ongoing as long as work is being undertaken on any particular project. Data verification includes statistical analysis of duplicates, standards, blanks, and other types of data obtained during the exploration phase and will determine if analytical procedures, sample preparation, or sampling procedures need to be modified in order to obtain accurate and verifiable results. Comparisons between the primary and secondary laboratories should be analyzed in order to validate laborary results. Different sample collection methods will also be analyzed to verify analystical results are not biased.