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Small Report TAYSAN COPPER GOLD PROJECT PREFEASIBILITY STUDY FOR A 15 MILLION TONNE PER ANNUM MINE Prepared By: Alistair Barton Ass.Dip, F.Dip Geology. FAusIMM, CP (Geol.) Barton Metals Pty Ltd Stewart Lewis BE (Civil), BE (Mining), RPEQ, M. AusIMM(CP) IMC Mining Group Pty Ltd Grahame Binks B.Eng. (Hons Met) M.Eng.Sci, AusIMM (CP) AMEC Australia Pty Ltd. Cameron Wylie MAusIMM, CP Mine Geotech., MIPENZ, CPEng(NZ) RDCL For Crazy Horse Resources Inc. Effective Date:12/06/2012 Document No. CZH-003 Taysan Copper Gold Project – Prefeasibility Study for a 15Mtpa Mine June 2012 Table of Contents 1 SUMMARY ............................................................................................................... 1 1.1 INTRODUCTION ................................................................................................................................. 1 1.2 PROPERTY DESCRIPTION AND LOCATION................................................................................... 1 1.3 GEOLOGY, MINERALISATION AND SEISMIC ASSESSMENT ....................................................... 2 1.4 HISTORICAL WORK, EXPLORATION AND DRILLING .................................................................... 3 1.5 EXPLORATION ................................................................................................................................... 3 1.6 MINERAL RESOURCE ESTIMATE .................................................................................................... 4 1.7 METALLURGY .................................................................................................................................... 4 1.8 MINERAL RESERVE ESTIMATES .................................................................................................... 5 1.9 MINING METHODS ............................................................................................................................ 6 1.10 RECOVERY METHODS ..................................................................................................................... 7 1.11 PROJECT INFRASTRUCTURE ......................................................................................................... 8 1.12 ENVIRONMENTAL AND COMMUNITY CONSIDERATIONS ............................................................ 9 1.13 CAPITAL AND OPERATING COSTS ............................................................................................... 10 1.14 ECONOMIC ANALYSIS .................................................................................................................... 12 1.15 INTERPRETATION AND CONCLUSIONS ....................................................................................... 14 1.16 RECOMMENDATIONS ..................................................................................................................... 15 2 INTRODUCTION .................................................................................................... 16 2.1 OVERVIEW ....................................................................................................................................... 16 2.2 PURPOSE ......................................................................................................................................... 16 2.3 INFORMATION USED ...................................................................................................................... 16 2.4 QUALIFIED PERSONS..................................................................................................................... 17 3 RELIANCE ON OTHER EXPERTS .......................................................................... 18 4 PROPERTY DESCRIPTION AND LOCATION ......................................................... 21 4.1 OVERVIEW ....................................................................................................................................... 21 4.2 PROPERTY LOCATION ................................................................................................................... 21 4.3 OWNERSHIP .................................................................................................................................... 23 4.3.1 EP-IVA-005 ........................................................................................................................ 24 4.3.2 EP-IVA-016 ........................................................................................................................ 25 4.3.3 EPA-IVA-108 ..................................................................................................................... 25 4.3.4 EPA-IVA-111 ..................................................................................................................... 26 4.3.5 EPA IVA-081 ...................................................................................................................... 26 4.3.6 AFTAA-IVA-14 ................................................................................................................... 27 4.4 INDIGENOUS PEOPLE .................................................................................................................... 27 4.5 WATER RIGHTS ............................................................................................................................... 27 4.6 KEY RESULT AREAS AND TIMELINES .......................................................................................... 27 4.6.1 Conversion of EP to FTAA................................................................................................. 28 4.6.2 Water Rights ...................................................................................................................... 28 4.6.3 Environmental Impact Assessment and Environmental Compliance Certificate ............... 28 4.6.4 Timber Permit .................................................................................................................... 28 CHZ-003 Page i Taysan Copper Gold Project – Prefeasibility Study for a 15Mtpa Mine June 2012 4.6.5 Land Acquisition ................................................................................................................ 29 4.6.6 Legal Review ..................................................................................................................... 29 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ................................................................................................... 30 5.1 ACCESS ........................................................................................................................................... 30 5.2 CLIMATE ........................................................................................................................................... 30 5.3 INFRASTRUCTURE AND PHYSIOGRAPHY................................................................................... 31 5.4 LOCAL RESOURCES - CORPORATE SOCIAL RESPONSIBILITY ............................................... 35 6 HISTORY ............................................................................................................... 36 6.1 DISCOVERY AND OWNERSHIP ..................................................................................................... 36 6.2 PREVIOUS EXPLORATION ............................................................................................................. 37 7 GEOLOGICAL SETTING AND MINERALIZATION .................................................. 39 7.1 REGIONAL TECTONIC SETTING ................................................................................................... 39 7.1.1 Luzon Arc ........................................................................................................................... 40 7.1.2 Batangas Regional Geology .............................................................................................. 41 7.2 LOCAL GEOLOGY ........................................................................................................................... 43 7.3 STRUCTURE .................................................................................................................................... 44 7.4 MINERALIZATION ............................................................................................................................ 45 7.5 SEISMIC HAZARD ASSESSMENT – PEAK GROUND ACCELERATION ESTIMATION ............... 47 7.5.1 Introduction ........................................................................................................................ 47 7.5.2 Methodology ...................................................................................................................... 48 7.5.3 Earthquake Catalogues and Seismicity Map ..................................................................... 49 7.5.4 Seismic Sources of Project Area ....................................................................................... 53 7.5.5 PGA of MCE ...................................................................................................................... 55 7.5.6 PGA Corresponding to the 475-Year Return Period ......................................................... 55 7.5.7 Influence of Geology .......................................................................................................... 56 7.5.8 Conclusion and Recommendation ..................................................................................... 56 7.5.9 Limits of this Report ..........................................................................................................
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