|Pucara 43-101 Report dated January 9, 2012|
The 1,662 hectare Pucara property is located in Puno Department approximately 70 kilometres north of Juliaca. Infrastructure is excellent with highway access only two kilometres from the property (Juliaca – Cuzco highway), electric power connected to the national grid and ample water in the area. Pucara is 100% owned by Forrester with a $US1/tonne royalty to Ing. Roberto Zegarra based on tonnes of reserves capped at 10 million tonnes.
Except for historical artisanal workings, the principal exploitation from the property has been by Ing. Zegarra. Over the period 1995 through 2008, Ing. Zegarra periodically mined material from the Gladys, Katy and Santo Tomas structures that was treated at the Crucero custom mill. The property was optioned to Miski Mayo (subsidiary of Vale during 2005 and 2006) which conducted IP and magnetic surveys over the Gladys- Lucero area and drilled eight holes totalling 1,564 metres before relinquishing the option.
Forrester optioned the property in 2007 and has conducted extensive surface and underground sampling as well as completing 30 drill holes totalling 4,764 metres. A short adit was also driven on the Katy structure. Preliminary metallurgical tests were conducted on material from the Gladys, Katy and Lucero zones with favourable results.
The property is underlain by early Tertiary sedimentary and volcanic rocks that have been intruded by co-magmatic hypabyssal stocks and dykes. The intrusives range from dacite to diorite in composition. Hematite-rich Cu-Au-Ag-Pb-Zn mineralization occurs within a structural corridor that is about 1.5 kilometres long and strikes approximately north-south. Mineralization of the southern end of the structure is dominantly Cu-Au whereas the northern sector is dominantly Pb-Ag-Zn. The structure follows the hinge of an open north-south striking anticline. Mineralization is indicative of an IOCG system and there is evidence of buried porphyry to the east of the Gladys zone.
A NI 43-101 report was filed on the property in early 2012 that recommended continued drill testing of various structures to depth as well as the potential buried porphyry. It also recommended the completion of a 700 metre long adit from the Gladys zone to the northern Minas de Plata zone.