Preliminary Economic Assessment Goldboro
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PRELIMINARY ECONOMIC ASSESSMENT on the GOLDBORO PROPERTY GOLDBORO, NOVA SCOTIA 61.6° W, 45.2° N prepared for OREX EXPLORATION INC. Effective Date: April 22, 2014 Prepared by Patrick Hannon, M.A.Sc. Douglas Roy, M.A.Sc., P.Eng. Lucas Dickie, B.Eng., EIT MineTech International Limited Halifax, Nova Scotia, Canada Orex Exploration – Goldboro Project Preliminary Economic Assessment, 2014 Contents 1 Summary ............................................................................................................................................. 11 2 Introduction ........................................................................................................................................ 26 2.1 Units of Measurement and Sources of Information ................................................................... 26 2.2 Site Visit....................................................................................................................................... 27 3 Reliance on Other Experts .................................................................................................................. 27 4 Property Description and Location ..................................................................................................... 28 4.1 Location and Area of the Property .............................................................................................. 28 4.2 Mineral Tenure to the Property .................................................................................................. 28 4.3 Land Tenure to the Property ....................................................................................................... 30 4.4 Agreements and Encumbrances on the Property ....................................................................... 30 4.5 Environmental Liabilities of the Property ................................................................................... 30 4.6 Permits Required for the Proposed Work .................................................................................. 31 4.6.1 General ................................................................................................................................ 31 4.6.2 Water Withdrawal Application and Code of Practice ......................................................... 31 4.6.3 Reclamation Plan ................................................................................................................ 31 4.6.4 Industrial Approval .............................................................................................................. 31 4.6.5 Environmental Assessment ................................................................................................. 31 4.6.6 Mineral Lease ...................................................................................................................... 32 4.7 Other Significant Factors ............................................................................................................. 32 5 Accessibility, Climate, Local Resources, Infrastructure and Physiography ......................................... 33 5.1 Topography, Elevation and Vegetation ...................................................................................... 33 5.2 Means of Access .......................................................................................................................... 33 5.3 Population Centres ..................................................................................................................... 33 5.4 Transportation ............................................................................................................................ 33 5.5 Climate ........................................................................................................................................ 34 5.6 Other Infrastructure .................................................................................................................... 34 6 History ................................................................................................................................................. 36 6.1 Ownership ................................................................................................................................... 36 6.2 Exploration .................................................................................................................................. 36 6.3 Resource/Reserve Estimates ...................................................................................................... 37 6.3.1 Guy Parent, 1990 ................................................................................................................ 37 6.3.2 MRB & Associates, 2004 ..................................................................................................... 38 6.3.3 Orex (P&E), 2005 ................................................................................................................. 39 6.3.4 InnovExplo, 2009 ................................................................................................................. 40 6.4 Historical Production .................................................................................................................. 42 Page 1 Orex Exploration – Goldboro Project Preliminary Economic Assessment, 2014 7 Geological Setting and Mineralization ................................................................................................ 44 7.1 Regional Geology ........................................................................................................................ 44 7.2 Property Geology ........................................................................................................................ 44 7.2.1 General Property Geology .................................................................................................. 45 7.2.2 South Limb Geology ............................................................................................................ 46 7.2.3 North Limb Geology ............................................................................................................ 46 7.3 Mineralization ............................................................................................................................. 49 7.4 Structure ..................................................................................................................................... 51 7.5 Alteration .................................................................................................................................... 52 8 Deposit Types ...................................................................................................................................... 53 9 Exploration .......................................................................................................................................... 54 9.1 Underground Development, 1988 to 1989 ................................................................................. 54 9.2 Bulk Sampling, 1989-1990 .......................................................................................................... 54 9.3 Surface Stockpile Sampling, 1995-1996 ...................................................................................... 54 10 Drilling ................................................................................................................................................. 56 10.1 Orex, 1988, Surface Diamond Drilling ......................................................................................... 56 10.2 Orex, 1988, Underground Diamond Drilling ............................................................................... 57 10.3 Orex, 1989, Surface Diamond Drilling ......................................................................................... 58 10.4 Orex, 1989 to 1990, Underground Diamond Drilling .................................................................. 59 10.5 Orex & Minnova, 1991, Surface Diamond Drilling ...................................................................... 60 10.6 Orex, 1993, Surface Diamond Drilling ......................................................................................... 61 10.6.1 Results ................................................................................................................................. 62 10.7 Placer Dome, 1995, Surface Diamond Drilling ............................................................................ 62 10.8 Orex, 2005, Surface Diamond Drilling ......................................................................................... 63 10.8.1 Summary ............................................................................................................................. 63 10.8.2 Drilling ................................................................................................................................. 63 10.8.3 Results ................................................................................................................................. 64 10.9 Orex, 2008, Surface Diamond Drilling ......................................................................................... 64 10.9.1 Results ................................................................................................................................. 65 10.10 Orex and Osisko, 2010, Surface Diamond Drilling ...................................................................... 65 10.10.1 Results