From Sedar sedar.com
FORM 27
SECURITIES ACT
MATERIAL CHANGE REPORT
1. Reporting Issuer
Full name of the Issuer: PACIFIC RIM MINING CORP.
The address of the principal office in Canada of the reporting issuer is as follows:
#328 - 625 Howe Street, Vancouver, B.C. V6C 2T6
Telephone: (604) 689-1976
2. Date of Material Change
May 24, 2000
3. Press Release
The date and places of issuance of the press release are as follows:
The Press Release was disseminated on May 24, 2000 to The Toronto Stock Exchange, being the only exchange upon which the shares of the Company are listed, as well as through various approved public media.
4. Summary of Material Change(s)
A summary of the nature and substance of the material change is as follows:
Luicho option. Results of surface, cliff and underground rock chip channel samples and finalization of an option to purchase surface rights for the Luicho project. Access road and drill schedule update.
5. Full Description of Material Change
Option
By agreement executed September 10 and 13, 1999, the Company, through its wholly owned Peruvian subsidiary, Minera Pacific Rim Peru S.A.C., has the exclusive right to acquire 100% of the Mining Concession Santiago 3 ("Luicho Property") from SMRL Santiago 3, a Peruvian corporation. The Luicho Property covers an area of 1000 hectares located in the area of Cerro Luicho, district of Colta, Province of Paucar del Sara Sara, Department of Ayacucho, Peru.
Regulatory acceptance of the agreement was received November 25, 1999. Pursuant to the terms of the Option Agreement, the total consideration to earn a 100% interest in the Luicho Property is US$25,820,000 payable as follows:
(a) US$200,000 upon execution (paid);
b) US$400,000 upon the first anniversary of regulatory acceptance of the agreement;
(c) US$1,000,000 upon the second anniversary of regulatory acceptance;
(d) US$24,220,000 upon the third anniversary of regulatory acceptance.
The term of the Option Agreement is 36 months from November 25, 1999. The option can be exercised at any time within the option term. Upon exercise of the option a perpetual net smelter royalty is payable to the vendors, equivalent to a percentage on the sale of all the ores mined from or produced at the Mining Concession by the Company or its successor, as follows:
(a) for the first 1,000,000 gold ounces obtained from the Luicho Mining Concession:
Price of Gold (US$/oz % NSR
Less than $300 2.5%
between $300 and $350 3.0%
over $350 3.5%
over $400 4.0%
over $500 5.0%
(b) for all gold in excess of 1,000,000 ounces 3.5% and
(c) for all other ore/mineral products 3%.
Sampling Results
The Company has carried out a broad surface, cliff and underground rock chip channel sampling program resulting in a total number of samples collected to date of 7,077. The average grade of all 7,077 samples collected to date from the Luicho project is 1.59 g/t gold. These samples represent a total of 229 channels (composed of two or more individual 2 meter long continuous
rock chip channel samples) collected in and around the Structural Corridor, and numerous individual samples. The Structural Corridor is a 1.85 kilometer long by 250 meter wide zone of intense fracturing that Pacific Rim believes is the core of the Luicho target. The cumulative results of the Company's sampling to date in each of the 3 zones that comprise the Structural Corridor are summarized in the table below.
Zone # total avg grade total % exceeding 0.31 g/t cutoff avg grade exceeding 0.31 g/t cutoff
Northeast 1234 1.33 g/t gold 70% 1.84 g/t gold
Central 2537 3.07 g/t gold 68% 4.43 g/t gold
South 641 1.29 g/t gold 52% 2.34 g/t gold
Total 4412 2.32 g/t gold 66% 3.43 g/t gold
Sampling is supervised by Pacific Rim's geologists David Ernst and Peter Dilles and the Luicho program is ultimately supervised by Thomas Shrake, CEO of the Company. Samples are assayed by Bondar Clegg, an ISO9002-registered analytical laboratory in Vancouver, BC, after first being prepared at their facility in Lima. A check assay program is on-going with Chemex Labs.
Surface Rights
A purchase option agreement has been signed and registered with the Pomacocha community, providing Pacific Rim complete and total land access for the upcoming drilling program and the option to purchase the lands on or before April 3, 2001 for US $1,237,005. The agreement covers all lands necessary for infrastructure sites for a large heap leach operation.
Road and drilling update
The final difficult section of access road is expected to be be completed shortly and two additional bulldozers are being mobilized to the site to construct drill platforms and a road network to access the platforms. A 20,000 meter reverse circulation drill contract has been signed with AK Drilling. The first of two drills to be used on this program is scheduled to arrive at the Luicho site on June 21, 2000.
6. Report Filed on a Confidential Basis
Not Applicable
7. Omitted Information
Not Applicable
8. Senior Officer
The following senior officer of the Issuer is knowledgeable about the material change and may be contacted by the Commission at the following address and telephone number:
Catherine McLeod-Seltzer
#328 - 625 Howe Street
Vancouver, B.C. V6C 2T6
Telephone: (604) 689-1976
9. Statement of Senior Officer
The foregoing accurately discloses the material change(s) referred to herein.
DATED at Vancouver, British Columbia, this 25th day of May, 2000. |
