Apdo. Postal 31-243 Guadalajara 5, Jalisco Mexico October 31, 1971 Mr. Weston Bourret Vice President Utah International Inc. 550 California Street San Francisco, California 94104 Wes: I would like to bring to your attention, and Utah's, a situation and property which appears to have sufficient merit for your consideration. This might have special interest if Utah International decides to enter Mexico looking for copper. On the other hand, Utah may find it advantageous to take a preliminary look immediately in advance of any decision. The geological and geophysical work and reports on the Calmalli Prospect in Baja, California, Mexico by Paul Handverger, Christopher C. Mathewson and John S. Sumner seem to have been well performed and the results encouraging. The indications are of a mineralized zone large enough to contain sufficient reserves to warrant a large operation. Mr. Edwin J. Surman B., president of Geotecnica, S.A., Hermosillo, Sonora reports that unofficially the "El Arco" Prospect of Asarco near Calmalli, Baja California, has an indicated 300 million tons of ore averaging 1.5 percent Cu. This is based on 36 drill core holes and 16 rotary drill holes. The Calmalli Prospect is 1.5 to 8 miles north of the El Arco Prospect. In comparison to the Caridad Project of 700 million tons of reserves at 0.7% Cu and the $300 million investment, The El Arco "indicated" reserves would Justify a similar scale operation. Obviously, the El Arco grade and reserves are not official and are only projected but they support some of the geological and geophysical findings in the enclosed reports. The Calmalli and El Arco prospects are located about 80 miles from the deep water port of Santa Rosalia, Baja California which would provide a convenient site for the shipment of copper concentrate to Japan or other Pacific port. It also probably would be outside the political pressures to ship to Anaconda Cananea for processing. I am under no obligation regarding these reports and maps but do believe it only fair to return them if Utah is not interested. With best personal regards, Philip B Dettmer Philip B. Dettmer Consulting Engineer THE FOLLOWING COMPANIES HAVE VISITED MR. WELCH'S PROPERTIES Donald T. McMillan Straus Exploration, Inc. 5919 East Pima Street Tucson, Ariz. 35712 Robert A. Metz Duval Corporation 5357 E. Pima Tucson, Ariz. Mr. John Kostuik Denison Mines Ltd. 8 King St. West Toronto 1, Ontario Canada David Gough Patino Mining Corporation 7 King Street East Toronto, Ontario Canada Peter Van Schaack Group Hochschild Camino al Desierto 5082 Colonia Tetelpan Mexico, D. F. Mr. William Saegart Quintana Minerals 5211 Oracle Road Tucson, Ariz. Patrick D. Darcy Exploration Manager Parnasse Delaware Co., Inc. Suite 102, 6710 E. Camelback R. Scottsdale, Ariz. 85251 Dr. Robert Slipp Placer Mexicana, S. A. de C. V. Edificio San Francisco - 106 Juarez y Jalisco Hermosillo, Sonora Cannon-Hicks Associates Ltd. D. M. Cannon, P. Eng Ste. 713-744 West Hastings St. Vancouver 1, B. C. Canada Ing. Gustavo Aguilar Servicios Industriales Peoles Apdo. Postal 636 Mexico 1, D. F. Richard Alvin Mills Geomet de Mexico, S. A. I. M. C. Exploraciones, S. A. Praga No. 60, Piso 6 Mexico 6, D. F. Cia. Minera Kappa, S. A. de C. V Wilford Nethery Tehuantepec # 68 Hermosillo, Sonora Mr. Edwin Surman B., Pros. IFEX Geotecnica S.A. informs me that Cominco and Pure Silver are visiting the property in November of this year. November 18, 1971 Mr. Philip B. Dettmer Consulting Engineer Apdo Postal 31-243 Guadalajara 5, Jalisco Mexico Dear Phil: Wes is away for a two week vacation and, in his absence, I am replying to your letter of October 31 which enclosed various reports and maps of a copper prospect in Mexico. Wes will answer your letter more fully than I can when he returns in early December. You probably know that Utah is not established in Mexico although we are looking into the merits of doing so. Therefore, in the meantime, we are unable to take any positive action on prospects in Mexico. We can, of course, hold these prospects in abeyance until such time as we are ready to take action, yea or nay, on them. Incidently, I know Paul Handverger well; he was the consulting geologist for exploration work being done around the old Jerome mining camp. Yours sincerely, Hugh Douglas Manager Mineral Planning HD/nam file Apdo. Postal 31-243 Guadalajara 5, Jalisco Mexico November 16, 1971 Mr. Hugh Douglas Manager Mineral Planning Utah International Inc. 550 California Street San Francisco, California 94104 Dear Hugh: Thank you sincirely for the letter of Nov. 3 remarking on my recent report on copper exploration activity in Mexico. And thanks for sending the interesting articles on electric furnace steel making. The following information may be of further interest regarding this subject of exploration activity. I just returned from a solo motorcycle trip up Baja California from La Paz to Mexicali. While refueling, both bike and me, in El Arco, I encountered three Mexican geologists of ASARCO in the local cantina. Discreet questioning determined that they were part of a crew of 28 geologists and men doing exploration around El Arco for copper. This particular crew was doing induced polarization work. This crew was in addition to the drilling crews. When I inquired about the size of the drilling effort, drills etc., the silence was deafening so on to other subjects. However, twenty eight men on strictly geophysical work seemed considerable. From a non-geologist's viewpoint and more by semi-informed hunch, I felt strongly while traveling through this El Arco area that there was a good potential for intensive and extensive mineralization. If Utah decides to look into exploration in Mexico, this area would certainly be an area for top priority consideration. Best regards, Philip B. Dettmer Philip B. Dettmer Consulting Engineer cc:Mr. Weston Bourret December 14, 1971 Mr. Philip B. Dettmer Apdo Postal 31-243 Guadalajara 5, Jalisco Mexico Dear Phil: Mr. Bourret and I are returning these reports to you with our thanks. As you know, we are a long way from establishing ourselves in Mexico, and when the time comes we would hope to look at this information again. With best wishes for Christmas, Yours very truly, Hugh Douglas Manager Mineral Planning HD/nam Enclosures - 3 binded reports 4 blueprints - Calmalli Mineral Prospect Baja California, Mexico