Resource Estimate, Preliminary Economic Assessment & Detailed Feasibility Study
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1 RESOURCE ESTIMATE, PRELIMINARY ECONOMIC ASSESSMENT & DETAILED FEASIBILITY STUDY ON THE OMAGH GOLD PROJECT COUNTY TYRONE, NORTHERN IRELAND 26th July 2014 R.Phelps C.Eng., B.Sc(Hons), MIOM3 Dr. S. Coulter B.Sc(Hons), M.Sc, PhD, FGS M. Mawson B.Sc(Hons), FGS., G. Harris B.Eng(Hons), ACSM, GradIMMM 2 NI.43-101 Report, 2014 Revision Contents 1. SUMMARY ..................................................................................................................................... 6 1.1 SUMMARY DESCRIPTION……………………………………………………………………………………………….……..….6 1.2 MINERAL RESOURCE ESTIMATE ……………………………………………………………………………………….……...9 1.3 MINING STUDY RESOURCE UTILISATION ………………………………………………………….………………..….11 1.4 MINE PLAN………………………………………..……………………………………………………………………………….….11 1.5 ECONOMIC SUMMARY………………………………………………………………………………………..…………………13 2. INTRODUCTION ........................................................................................................................... 14 3. RELIANCE ON THIRD PARTIES ...................................................................................................... 15 4. PROPERTY DESCRIPTION AND LOCATION ................................................................................... 15 4.1 MINERAL LEGISLATION AND LICENSING .................................................................................. 15 4.2 LOCATION ................................................................................................................................. 16 4.3 OMAGH MINERALS LTD LICENCES ........................................................................................... 16 4.4 PERMITS ................................................................................................................................... 19 5. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ............ 19 6. HISTORY ...................................................................................................................................... 20 6.1. PROJECT HISTORY ..................................................................................................................... 21 6.2 HISTORICAL ESTIMATES OF MINERAL RESOURCES AND RESERVES. ........................................ 22 6.2.1 INTRODUCTION ................................................................................................................ 22 6.2.2 1995 RESOURCE/RESERVE ESTIMATE .............................................................................. 23 6.2.3 CONFORMITY OF 1995 RESOURCES TO CIM CLASSIFICATION ......................................... 24 6.2.4 2004 RESOURCE AND RESERVE STUDY ............................................................................ 24 6.2.5 BULK MINING TRIALS, 2003.............................................................................................. 25 6.2.6 2008 RESOURCE ESTIMATE .............................................................................................. 26 6.3 OPEN PIT MINING, 2006-2012 ................................................................................................. 27 7 GEOLOGICAL SETTING AND MINERALISATION ............................................................................ 27 7.1 REGIONAL GEOLOGY AND GOLD DEPOSITS ............................................................................. 28 7.2 LOCAL GEOLOGY ....................................................................................................................... 29 7.3 MINERALISATION ..................................................................................................................... 32 8 DEPOSIT TYPES ............................................................................................................................ 34 9. REGIONAL AND CROSS BORDER EXPLORATION .......................................................................... 34 10. HISTORICAL EXPLORATION WITHIN THE MINE SITE .................................................................... 39 10.1 CHANNEL SAMPLING, 2012 ...................................................................................................... 40 10.1.1 KEARNEY VEIN .................................................................................................................. 40 10.1.2 JOSHUA VEIN .................................................................................................................... 40 10.1.3 KERR VEIN ......................................................................................................................... 40 10.2 EXPLORATION POTENTIAL AND PRIORITISED PROJECT TARGETS IN OM1-09 ......................... 41 11 DRILLING ...................................................................................................................................... 45 11.1 OVERVIEW ................................................................................................................................ 45 11.2 DRILLING METHODOLOGY ....................................................................................................... 48 11.3 CORE RECOVERY ....................................................................................................................... 49 11.4 DRILLING RESULTS 2011-2014.................................................................................................. 53 11.4.1 JOSHUA DRILLING ............................................................................................................. 55 11.4.2 KEARNEY DRILLING ........................................................................................................... 56 11.4.3 KERR DRILLING ................................................................................................................. 57 12 SAMPLE PREPARATION, ANALYSES AND SECURITY ..................................................................... 57 3 12.1 QUALITY ASSURANCE AND QUALITY CONTROL ....................................................................... 60 12.1.1 OMAC INTERNAL LABORATORY QA/QC ........................................................................... 60 12.2 GALANTAS QA/QC .................................................................................................................... 63 12.2.1 GALANTAS STANDARD SAMPLES, 2012-2014 .................................................................. 63 12.2.1.1 GALANTAS STANDARD SAMPLES, 2013-2014 .............................................................. 65 12.2.2 PULP RE ASSAY SAMPLES ................................................................................................. 66 12.2.3 BLANK SAMPLES ............................................................................................................... 67 12.3 QA/QC CONCLUSIONS .............................................................................................................. 68 13 DATA VERIFICATION .................................................................................................................... 68 14 MINERAL PROCESSING AND METALLURGICAL TESTING ............................................................. 69 15 MINERAL RESOURCE ESTIMATES ................................................................................................ 69 15.1 RESOURCE ESTIMATION OVERVIEW ........................................................................................ 69 15.2 SOFTWARE................................................................................................................................ 69 15.3 DATABASE COMPILATION ........................................................................................................ 69 15.4 DATABASE VALIDATION ........................................................................................................... 71 15.5 COLLAR LOCATIONS.................................................................................................................. 72 15.6.1 INTERPRETATION OF MINERALISED ZONES ..................................................................... 73 15.7 WIREFRAMING ......................................................................................................................... 75 15.7.1 SAMPLE DATA SELECTION, TOP-CUTTING AND COMPOSITING ....................................... 78 15.7.2 GLOBAL REFERENCE ESTIMATE ........................................................................................ 81 15.7.3 GEOSTATISTICS ................................................................................................................. 81 15.8 BLOCK MODELLING .................................................................................................................. 82 15.9 GRADE INTERPOLATION ........................................................................................................... 83 15.10 RESOURCE CLASSIFICATION ................................................................................................. 88 15.11 DENSITY ................................................................................................................................ 91 15.12 RESOURCE TABLE ................................................................................................................. 92 15.13 MODEL VALIDATIONS ........................................................................................................... 93 15.14 COMPARISON WITH PREVIOUS RESOURCE ESTIMATES ...................................................... 97 16 MINERAL RESERVE ESTIMATES ...................................................................................................