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12-181-AUC-Reno-Cree RENO CREEK ISR PROJECT TECHNICAL REPORT AND AUDIT OF RESOURCES OF THE RENO CREEK ISR PROJECT CAMPBELL COUNTY, WYOMING, USA FOR AUC LLC LATITUDE 43°36′52″TO LATITUDE 43°44′51″ NORTH LONGITUDE 105°37′22″ TO LONGITUDE 105°47′17″ WEST (BEHRE DOLBEAR PROJECT 12-181) 31 JULY 2016 PREPARED BY: BETTY L. GIBBS, MMSA #01164QP ROBERT D. MAXWELL, CPG, AIPG #10903 BEHRE DOLBEAR & COMPANY (USA), INC. 6430 SOUTH FIDDLER’S GREEN CIRCLE, SUITE 250 GREENWOOD VILLAGE, COLORADO 80112 (303) 620-0020 A Member of the Behre Dolbear Group Inc. © 2016, Behre Dolbear Group Inc. All Rights Reserved. www.dolbear.com Technical Report and Audit of Resources of the Reno Creek ISR Project 31 July 2016 TABLE OF CONTENTS 1.0 SUMMARY ............................................................................................................................. 1 1.1 PROPERTY DESCRIPTION AND LOCATION ...................................................... 2 1.2 HISTORY AND STATUS ......................................................................................... 4 1.3 GEOLOGY AND MINERALIZATION .................................................................... 5 1.4 MINERAL RESOURCES .......................................................................................... 6 1.5 PROPOSED RECOVERY TECHNIQUE .................................................................. 9 1.6 CONCLUSIONS AND RECOMMENDATIONS ..................................................... 9 2.0 INTRODUCTION ................................................................................................................. 11 2.1 PURPOSE OF THE REPORT .................................................................................. 11 2.2 SOURCES OF INFORMATION AND DATA ........................................................ 11 2.3 QUALIFIED PERSONS/PROFESSIONALS AND AUTHORS ............................. 12 2.4 CURRENCY AND UNITS OF MEASUREMENT ................................................. 12 3.0 RELIANCE ON OTHER EXPERTS .................................................................................... 13 4.0 PROPERTY DESCRIPTION AND LOCATION ................................................................. 14 4.1 PROPERTY DESCRIPTION ................................................................................... 14 4.2 LOCATION .............................................................................................................. 16 4.3 MINERAL TENURE, RIGHTS, AND ROYALTIES ............................................. 16 4.4 OTHER SIGNIFICANT FACTORS OR RISKS ..................................................... 17 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY ....................................................................................................... 18 5.1 TOPOGRAPHY, ELEVATION, AND VEGETATION .......................................... 18 5.2 ACCESS TO THE PROPERTY ............................................................................... 19 5.3 PROXIMITY OF THE PROPERTY TO POPULATION CENTERS AND TRANSPORTATION ..................................................................................... 19 5.4 CLIMATE AND LENGTH OF OPERATING SEASON ........................................ 20 5.5 SURFACE RIGHTS FOR ISR OPERATIONS, POWER, MINING PERSONNEL, AND LAND AVAILABLE FOR PROCESSING FACILITIES ............................................................................................................. 20 6.0 HISTORY .............................................................................................................................. 21 6.1 PRIOR OWNERSHIP AND OWNERSHIP CHANGES ......................................... 21 6.1.1 North Reno Creek and Southwest Reno Creek Units .................................. 21 6.1.2 Moore, Pine Tree, and Bing Units ............................................................... 21 6.2 TYPE, AMOUNT, QUANTITY, AND RESULTS OF WORK BY PREVIOUS OWNERS ............................................................................................. 22 6.2.1 Disequilibrium Studies ................................................................................ 22 6.2.2 North Reno Creek and Southwest Reno Creek ............................................ 23 6.2.3 Moore Unit ................................................................................................... 23 6.2.4 Pine Tree Unit .............................................................................................. 24 6.2.5 Bing Unit ..................................................................................................... 24 6.3 HISTORICAL MINERAL RESOURCE ESTIMATES ........................................... 24 6.4 PRODUCTION ......................................................................................................... 25 7.0 GEOLOGICAL SETTING AND MINERALIZATION ....................................................... 27 7.1 REGIONAL GEOLOGY .......................................................................................... 27 7.2 SITE GEOLOGY ...................................................................................................... 29 7.2.1 North Reno Creek and Southwest Reno Creek Geology ............................. 31 7.2.2 Moore Resource Unit Geology .................................................................... 35 Project 12-181 (NI 43-101 Report) i BEHRE DOLBEAR Technical Report and Audit of Resources of the Reno Creek ISR Project 31 July 2016 TABLE OF CONTENTS (CONTINUED) 7.2.3 Pine Tree Resource Unit Geology ............................................................... 36 7.2.4 Bing Resource Unit Geology ....................................................................... 37 7.2.5 Lithologic Characteristics ............................................................................ 39 8.0 DEPOSIT TYPE .................................................................................................................... 41 8.1 DEPOSIT TYPE AND GEOLOGIC MODEL ......................................................... 41 9.0 EXPLORATION ................................................................................................................... 42 10.0 DRILLING ............................................................................................................................. 43 10.1 TYPE AND EXTENT OF DRILLING .................................................................... 43 10.1.1 North Reno Creek and Southwest Reno Creek Unit Drilling ...................... 43 10.1.2 Moore Unit Drilling ..................................................................................... 44 10.1.3 Pine Tree Unit Drilling ................................................................................ 45 10.1.4 Bing Unit Drilling ........................................................................................ 45 11.0 SAMPLE PREPARATION, ANALYSIS, AND SECURITY .............................................. 46 11.1 DOWNHOLE GEOPHYSICAL LOGGING ........................................................... 46 11.2 CORE DRILLING .................................................................................................... 46 12.0 DATA VERIFICATION ....................................................................................................... 48 12.1 DATABASE ............................................................................................................. 48 12.1.1 Data Preparation .......................................................................................... 48 12.1.2 Data Verification.......................................................................................... 49 12.1.3 Data Adequacy ............................................................................................. 51 12.2 CORE SAMPLING .................................................................................................. 51 13.0 MINERAL PROCESSING AND METALLURGICAL TESTING ...................................... 54 13.1 CORE ANALYSES .................................................................................................. 54 13.1.1 Permeability and Porosity Measurements .................................................... 54 13.1.2 Effective Porosity – Nuclear Magnetic Resonance ..................................... 55 13.1.3 Metallurgical Testing ................................................................................... 55 13.1.4 Column Leach .............................................................................................. 58 13.1.5 Equilibrium Study ........................................................................................ 58 13.1.6 Host Rock Characteristics ............................................................................ 59 14.0 MINERAL RESOURCE ESTIMATES................................................................................. 61 14.1 BACKGROUND ...................................................................................................... 61 14.2 RESOURCE ESTIMATION .................................................................................... 61 14.3 MINERAL RESOURCE CLASSIFICATION METHOD ....................................... 61 14.4 MEASURED AND INDICATED RESOURCES .................................................... 62 14.5 INFERRED MINERAL RESOURCE ...................................................................... 64 14.6 VERIFICATION OF ESTIMATE ............................................................................ 64 14.7
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