Site Visit: Batero Gold Corp.

(TSX-V: BAT)

The Emerging Mid-Cauca Porphyry Belt

By: Simon Russell, Mining Analyst
June 21st, 2011

Batero Gold Corporation

www.baterogold.com
Ticker:
TSX-V.BAT
SO:
47.6 Million
FD:
60.4 Million
Cash:
C $ 10.0 Million
Mcap:
C $ 152.3 Million
Share Price: C $ 3.20 (30 May '11)

Highlights:
*Experienced Canadian management and Colombian geologists
*Excellent share structure with C$10 M cash and $38 M fully diluted
*Pro-mining jurisdiction with infrastructure & community support
*Drilling 3 Au-Cu porphyry centers on 100% owned property
* From 6 m below surface, drill hole #8 recently recovered:
519.7 metres of 0.80 g/t gold + 0.14% Cu ending in mineralization
*Anticipating first NI 43-101 resource estimate Q4 2011

Overview:
Batero Gold Corporations [TSX-V.BAT]
Quinchia exploration project is located
in Colombias booming Mid-Cauca River
Valley, which is experiencing one of the
biggest gold rushes in the world today.
This region has a two thousand year-old
history of artisanal gold mining and
metal working that pre-dates the
Spanish Colonial era. More recently,
geologists have found a number of
gold-rich porphyry deposits here by
using modern exploration techniques to
prospect the rocks surrounding many artisanal mines. Considering Colombias
business environment has also improved significantly, these new discoveries imply

the Mid-Cauca mineral belt has potential to emerge as a modern world-class gold
and copper mining area in the near future.
The primary objective of Bateros ongoing 2011 drill program is to expand the area
of known mineralization surrounding discovery holes AngloGold Ashanti drilled at
the La Cumbre and Dos Quebradas porphyry targets in 2006 and 2007. Several
other prospects are also being explored for additional drill targets. Soon after Phase
1 ramped up to full speed with 4 rigs drilling the 16,000 metre program I visited
Bateros Quinchia project to meet their people and look at their rocks. Most of the
assay results from these holes have just been announced, showing they have
recovered more long intercepts with significant gold and copper mineralization:
Hole QAP-DDH-008: 519.7 metres grading 0.80 g/t gold and 0.14% copper,
beginning 6 metres below surface and ending in mineralization (-60 deg.)
Hole QAP-DDH-013: 592.5 metres grading 0.45 g/t gold and 0.12% copper,
beginning 10 metres below surface and ending in mineralization (vertical)

Because the results have been very encouraging so far, after Phase 1 was
completed in April they added 3 more rigs with an additional 24,000 metre Phase 2
follow up program. Led by an accomplished management team, with 7 drill rigs
turning and an 8th arriving soon, plus 23 geologists and over 250 locals helping
sample the rocks, Quinchia has become the most active gold-copper porphyry
exploration project in Colombia today.
Batero Gold Corporation is fully
capitalized for this exploration
project and subsequent
calculation of their propertys
first NI 43-101 compliant
resource estimate, which they
anticipate being complete Q4 of
this year. BAT has about $10
Million in cash plus an additional
$28 Million of warrants and
options that are in the money.
Their 1,400 hectare Quinchia
project is 100% owned with no outstanding payments or royalties.
The company also has an excellent share structure with only about 48 Million
Shares Issued and Outstanding and 60 Million Shares Fully Diluted. BAT shares are
currently trading near $2.75 on the TSX-Venture Exchange so the company has a
Market Cap of about $132 Million.
We believe that Batero Gold is currently on sale relative to their geologic potential
and managements talent, so members of the GoldForecaster.com staff and I have
been acquiring additional BAT stock during this dip in share price.

Quinchias Location & Geology:

Batero Golds Quinchia project is located in the mountains overlooking the lush MidCauca River Valley within Colombias Coffee Triangle region between Pereira and
Medellin, and about 190 km from the Colombian capital, Bogota. The Cauca River is
contiguous with the southern claim boundary, plus the Pan American Highway
crosses part of their claim block and a railroad is nearby. Moreover, a network of
dirt roads and power lines traverse this project. The Matecana International airport
is located 55 km away at Pereira, capital of the Department of Risaralda with a
population of about 575,000.
Quinchia is located about 100 km north of AngloGold Ashantis [NYSE.AU] 12.9
Million oz La Colosa porphyry deposit, which Bateros senior geologists previously
discovered and developed for the major mining company. Quinchia is also located
just 20 km south of the 9.8 Million oz Marmato porphyry gold deposit and famous
artisan mining district that is being
developed by Medoro Resources
[TSX.MRS], who is merging with Gran
Colombia Gold [TSX.GCM]. Bateros
neighbor Seafield Resources [TSXV.SFF] has 0.77 Million oz at their
Miraflores hydrothermal breccia pipe
and historic artisan mine. And nearby
Sunward Resources [TSX-V.SWD] has a
3.7 Million oz resource at the Cerro
Vetas Zone within their Titribi porphyry
district. These deposits total over 27
Million ounces of gold that has been
found along this emerging Mid-Cauca
trend within the past 10 years, within NI
43-101 compliant resource estimates.
(Map courtesy of www.baterogold.com)
At Bateros Quinchia project three separate porphyry centers with anomalous
geochemistry and geophysics have been identified at La Cumbre, Manzanillo, and
Dos Quebradas targets. Geologists have also identified gold mineralization at many
related breccias and epithermal veins during their ongoing mapping and sampling
surveys. Seven drills are currently on the property, with 5 rigs turning at La
Cumbre. The 6th is drilling at the Manzanillo porphyry center, which is a
geochemical and geophysical anomaly located about 750 metres northeast of La
Cumbre. And the 7th rig is currently at a priority target located about 300 metres
from the Dos Quebradas porphyry center. Also, an 8th drill is scheduled to arrive
within the coming weeks, which will be used to explore other targets on Bateros
1,400 hectare property such as the Structural Knot area and recently acquired
Metacana artisanal mining camp.

La Cumbre Porphyry Drilling:

In Spanish La Cumbre means the summit so AngloGold began drilling this target
near the mountain top. And because the initial discovery holes recovered long
mineralized intervals beginning just below a thin cover of soil, BATs primary
objective for Phase 1 drilling was to expand the lateral extent of known
mineralization with step-out holes. Based on their successful results, the Phase 2
program now has 4 rigs step-out and infill drilling plus a 5th rig drilling deeper.
Phase 1 delineation drilling found La Cumbres eastern and western structural
boundaries have an average width between about 200 and 400 metres. This target
is still open to further exploration along the trend in both the north-northwest and
south-southeast directions, and detailed surface mapping shows its strike could be
about 600 metres long. Many of the holes ended in mineralization when the drill
rigs reached their maximum lengths between 300 and 600 metres, so most of this
target still remains open to exploration at depth. Batero is curious about how far
down this mineralization extends so they have brought in a drill rig that can reach
about 1,000 metres, and it has just began drilling the first deep vertical hole.
Since mineralization occurs on a hilltop only covered by soil, these drill intercepts
imply La Cumbre has potential to become a
large scale surface mine with a very low
strip ratio. Furthermore, BATs geologists
found alteration that appears to be a zone
of secondary enrichment. Drilling into this
zone averaged higher grade assays around
1 g/tonne gold and 0.15% copper,
beginning at depths less than 15 meters,
and across lengths from about 100 to over
200 metres, as listed in Table 1 of their
latest news release
Exploration of this porphyry is now focused
on developing the secondary enrichment
zones potential to become a high grade
starter pit. Informative maps and cross
sections of this drill program including assay
results and geological descriptions of each
hole are located on Bateros La Cumbre
Project page.
After a landslide removed the thin cover of soil and vegetation to expose this hillside of rusty
porphyritic rock, Bateros geologists are sampling it for assay with help from local workers.

Porphyry Prospecting in Colombias Mid-Cauca Gold Rush:

Historically Colombia has been one of the worlds most productive gold mining
regions. While small scale artisanal mining of gold occurs across the country, there
are not currently any major gold mining companies operating producing mines in
Colombia. However, geologist believe this northern extension of the Andes
Mountains has potential to host similar deposits as those currently being mined to
the south in Peru and Chile. Big international companies like Xstrata are currently
mining many different minerals here, such as iron ore, coal and salt. Therefore,
now that several large gold deposits have been recently been discovered I
anticipate that major gold mining companies will start building modern gold mines
here during this gold rush. And first they will need to acquire sizeable deposits from
the Canadian listed exploration companies who find them.
The Cauca River flows from south to north along the Cauca-Romeral Fault Zone and
its adjacent mineral belt, following part of the Colombian Andes. Here large gold
deposits can occur as porphyritic intrusive rocks at the intersection of major crosscutting east-west structures. These porphyries can also host breccias and
epithermal veins that carry high grade gold, which artisanal miners have pursued
underground intermittently over the past couple of thousand years through today.
Moreover, while these deposits are rich in gold, many are also polymetallic with
varying concentrations of copper, silver, molybdenum, and other important metals.
Batero Gold recently completed their acquisition of the two historic artisanal mining
camps at La Cumbre and Mandeval where high grade gold was previously mined
from breccias and veins, some even producing until recently. Their miners are still
working here but for the exploration project now, and are currently helping secure
portions of the underground workings so they are safe for Bateros geologists to
map and explore.

Mill at the La Cumbre artisanal mine. R to L: crusher, ball mill, and jig table.
(Courtesy of www.baterogold.com)

Major mining companies typically prefer to build big open pit mines with porphyries
or similar types of massive ore deposits, instead of smaller high grade underground
mines in veins or breccias. Their enormous tonnages of low grade but consistent
mineralization ultimately amounts to very large quantities of metal in the ground

and ultimately production rates that can be easily modeled to reduce financial risk.
Once any Mid-Cauca porphyries are proven to be economically feasible to extract,
those reserves will likely become acquisition targets and ultimately producing
modern gold mines in the future.
Porphyry prospecting in the Mid-Cauca region away from artisanal mine workings is
challenging. The mountainous terrain is very steep and covered with dense
vegetation so rock outcrops are often
limited to stream channels. This
requires a lot of boots on the ground
to prospect the geology and collect
samples. The companys ongoing
geochemical survey includes teams of
geologists with local workers who
sample outcrops along stream channels
plus excavate trenches and test pits.
Surface and aerial geophysical surveys
are also very useful tools when
searching for hidden porphyries here.
Exploring La Cumbre: core drilling, plus geochemical sampling of test pits, trenches and access roads.

Bateros Management and People:

Batero Golds management has operated large exploration programs that became
significant discoveries in both Colombia and Canada. Consequently, when La
Cumbres stepout holes continued intersecting mineralization they were able to
quickly and efficiently ramp up drilling from Phase 1 to Phase 2. Vancouver based
CEO Brandon Rook is an accomplished exploration geologist and manager with over
a decade of field experience. Mr. Rook also has a degree in sociology, was
previously the CEO of Altas Minerals Inc., and was the managing partner of a
geological consulting firm. The company has an experienced board of directors with
strong technical and financial backgrounds, and is owned by top institutional
investors.
Bateros Colombian Exploration Manager Rafael Alfonso Roa previously held the
same position with AngloGold Ashanti from 2003 to 2008. He helped pioneer the
exploration of gold rich porphyries in the Colombian Andes using modern
techniques including soil geochemistry and geophysics, which he used to make
numerous discoveries including La Colosa, San Luis, and Quinchia. As a Colombian
Vice President for the major miner he was also responsible for developing their
social and political strategies. Furthermore, in this role Mr. Roa has effectively
implemented a modern sustainable development approach towards this project over
many years by working with the local community to pro-actively address social and
environment issues relevant to the project. He also helped found the Colombian
Chamber of Mines, and is an advisor to the Colombian Department of Mines and
Geologic Service called Ingeominas.

Mr. Roas core team of Colombian geologists and professionals who are now
working for Batero includes senior geologists overseeing the exploration drilling and
field program, human resources and community development professionals,
accountants, and legal counsel. Members of BATs team drilled the discovery holes
at Quinchia with AngloGold in 2006 and 2007, and over the past 5 years their social
and environmental group has developed an excellent relationship with the local
community. More than 250 local farmers and villagers are also currently helping
explore this project today, many of whom were previously trained by AngloGold to
collect outcrop and soil samples safely while following standard industry QA/QC
procedures.
Income these locals earn from exploration work is a boost to what they otherwise
typically make by farming coffee and bananas on their small hillside farms. It was
obvious during my site visit the locals are
very hard workers and familiar with digging
in the hills. The Quinchia community is
hopeful this exploration project can prove
that at least one large surface mineable
gold-copper deposit is hiding under the
vegetation, because building a mine here
would provide their community with a lot of
good job opportunities over many years.

Drill rig at the La Lenguita target has dirt road access and connection to the power grid.

Colombias Emerging Markets:

Foreign investors have increasingly pursued opportunities in Colombias emerging
markets over the recent years. Previously unavailable, these development
opportunities have not come without risk, and Colombia is generally considered to
be risky. But by noticing Colombia has made significant improvements over the
past decade many foreign investors and business have become very successful
during this time. Especially certain well managed Canadian listed exploration
companies with top local expertise, who acquired the best prospects and
subsequently are now developing significant gold deposits in the Mid-Cauca
porphyry belt. It appears this trend should continue for many years as the new
Colombian mining boom is just getting started.
Since former President Alvaro Uribe was inaugurated in 2002 the countrys armed
conflicts between government security forces, FARC guerillas, drug traffickers, and
paramilitary groups have decreased markedly. Several key outlaws have been
arrested, and the government has negotiated cease-fires and disarmaments.
Uribes successor and former Minister of National Defense, current President Juan

Manuel Santos was elected in October 2010. President Santos was also Ministers of
Foreign Trade and Finance during his successors 8-year administration and
continues the policy of encouraging Direct Foreign Investment as a way to help
improve their countrys economy and ultimately the standard of living.
Over recent years the government has been constructing major infrastructure
projects as preparation for this economic development. April of this year Colombias
President Santos visited US President Barrack Obama in Washington DC to continue
negotiating the Colombian Free Trade Agreement, which is approaching an August
deadline. Colombia completed a trade agreement with Canada in late 2010, and is
also currently negotiating with the European Union and Switzerland.
Colombias economy has many different sectors, including significant manufacturing
and textile industries. Being located close to the equator agriculture is very
important, and they are a major exporter of coffee, sugar cane, bananas, palm oil,
flowers, and lumber. But the government is especially focused on developing their
petroleum and mineral resources, and they recently updated their mining law with
Canadian advisors. Now that geologists finally have access to these remarkable
under-explored rocks, many sizeable gold deposits have been found and oil
production has also begun to increase significantly.
Colombias Ministry of Mines held a Colombian Mining Day in February during this
years annual Prospectors and Developers Association of Canada (PDAC) mining
conference in Toronto, the worlds most attended gathering of mining professionals
and investors. Presentations were given by Colombias Ambassador to Canada,
Minister of Mines & Energy, Vice Minister of Internal Affairs, and Vice Minister of
Environmental Affairs.
The Colombian governments official
mining websites also provide
information online in English:
Colombian Ministry of Mines and
Energy: MINMAS
Colombian Mining System: SIMCO
While hiking through a field of coffee plants
between the drill rigs at La Cumbre and La
Lenguita, a Canadian mining analyst
conveniently finds himself within range of a communications tower.
PROEXPORT Colombia is the official investment website for Direct Foreign
Investment, export promotion, and tourism. Some of the reasons why they suggest
investing in Colombia include:
*The World Banks 2010 Doing Business Report ranks Colombia as the first
country in Latin America that best protects investors, and fifth worldwide.

*Fifth largest economy in Latin America, after Brazil, Mexico, Venezuela, and
Argentina, and ahead of Chile and Peru.
*Third largest country in Latin America with a population of 44.9 million.
Population of the capital city, Bogota with surrounding metropolitan area is
about 8.5 million.
*Coast lines on both the Pacific and Atlantic Oceans with close proximity to
the equator and Panama Canal provides excellent sea access to markets
elsewhere in Latin America, the US, Europe, Asia, and the Caribbean.
*Some of the large foreign companies that developed new businesses units
in Colombia during 2010 include Hewlett Packard, IBM, SNC-Lavalin,
Siemens, Hyatt, and Marriott. This year Microsoft announced they will assist
in the development of a new biotechnology center in Colombia.

Colombian Gold:
Gold has played an important role in the lives and culture of people living across
Colombia throughout history, as exhibited at the Museo del Oro, or Museum of
Gold in Bogota. Banco de la Republicas gold collection began with a Quimbaya
poporo from the Cauca River Valley region, made around 100 A.D.. After acquiring
this first piece in 1939 the bank continued investing in the preservation of their
countrys gold culture, eventually
opening the Museo del Oro in late 2004.
In addition to the main museum in
Bogota, the bank has several local
branches across the country, including
one in the Mid-Cauca that specifically
exhibits this regions golden history and
artifacts. If unable to visit in person, I
highly recommend touring the Colombian
gold museums online.
Credit - photo from Museo del Oro
The museums Offering Room exhibits hundreds of ancient religious ornaments and jewelry pieces
made of gold. Once the semi-circular door slides closes, audio-visual effects are used to create a
shamanistic experience.

Conclusion:
Colombia has recently developed into one of South Americas most attractive
emerging markets for investors following a decade of political transformation.
Today the government actively encourages direct foreign investment and is
negotiating several trade deals with an emphasis on developing their mineral

resources. Gold mining has played a very important role in this countrys society
and economy throughout history and geologists believe their under-explored
extension of the Andes has outstanding potential to host many world class mineral
deposits. After revising their mining law, several world class multi-million ounce
gold discoveries have been made near historic artisanal workings by applying
modern prospecting methods. Just in the Mid-Cauca River Valley alone over 27
Million ounces of gold have been discovered within the past 10 years, mostly at La
Colosa, Marmato, and Titribi. Building upon these discoveries, Colombia is now
poised to emerge as one of the planets next major gold mining areas in the future.
Therefore, I anticipate that major gold mining companies will soon begin making
moves into this region by acquiring the best Canadian listed explorers as they look
to bring new gold mines into production.
Batero Gold Corporation has accomplished Colombian and Canadian geologists and
management, plenty of cash, and an excellent share structure supported by top
institutional investors. Recently announced drill results from La Cumbre imply this
porphyry has geologic potential to be of size similar to other world-class deposits
recently found in the Mid-Cauca mineral belt, plus Bateros Quinchia project is
exploring two more gold rich porphyry targets at Dos Quebradas and Manzanillo.
With support from the local community and the national government behind them,
if Batero can prove that they have found an economic multi-million ounce gold
deposit, this property has the infrastructure and social incentives in place to
expedite mine development. Considering Bateros talented team and their Quinchia
propertys geologic potential, I am looking forward to their first NI 43-101
compliant resource estimate in Q4 2011.

Simon Russell
Mining Analyst, GoldForecaster.com

Simon Russell is a mining and geological engineer with 10 years of diverse experience.
His background includes hydrology and environmental engineering, exploration geology,
underground contract mining, mine engineering and project management, and mine
investment analysis. Mr. Russell has worked for many different types of mineral projects
internationally and across the western United States for investors, consulting firms, and
both major and junior resource companies.
Mr. Russell is not and investment advisor, nor is this an investment advice.

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