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Mount Hope 43-101 Feasibility Study 2013 M3‐PN130154 Effective Date: January 15, 2014 Issue Date: January 15, 2014 Mount Hope Project Form 43-101F1 Technical Report Feasibility Study Eureka, Nevada REVISION 0 Prepared For: Qualified Persons: Conrad E. Huss, P.E., Ph.D. Robert Davidson, P.E. Art S. Ibrado, Ph.D. Daniel Roth, P.E. John M. Marek, P.E. M3 Engineering & Technology Corporation ● 2051 West Sunset Road, Tucson, AZ 85704 ● 520.293.1488 MOUNT HOPE PROJECT FORM 43-101F1 TECHNICAL REPORT DATE AND SIGNATURES PAGE The issue date of this Report is January 15, 2014. The effective date of this Report is January 15, 2014. The effective date of the Mineral Reserve estimate is December 14, 2013. See Appendix A, Feasibility Study Contributors and Professional Qualifications, for certificates of Qualified Persons. These certificates are considered the date and signature of this Report in accordance with Form 43-101F1. (Signed) “Conrad E. Huss” January 15, 2014 Conrad E. Huss, P.E., Ph.D. Date (Signed) “Robert Davidson” January 15, 2014 Robert Davidson, P.E. Date (Signed) “Art S. Ibrado” January 15, 2014 Art S. Ibrado, Ph.D. Date (Signed) “Daniel Roth” January 15, 2014 Daniel Roth, P.E. Date (Signed) “John Marek” January 15, 2014 John Marek, P.E. Date M3-PN130154 15 January 2014 Revision 0 i MOUNT HOPE PROJECT FORM 43-101F1 TECHNICAL REPORT MOUNT HOPE PROJECT FORM 43-101F1 TECHNICAL REPORT FEASIBILITY STUDY EUREKA, NEVADA TABLE OF CONTENTS SECTION PAGE DATE AND SIGNATURES PAGE ..................................................................................................... I TABLE OF CONTENTS ..................................................................................................................... II LIST OF FIGURES AND ILLUSTRATIONS ............................................................................... IX LIST OF TABLES .............................................................................................................................. XI 1 SUMMARY ................................................................................................................................ 1 1.1 KEY DATA ....................................................................................................................... 2 1.2 SUMMARY ....................................................................................................................... 3 1.3 SCOPE .............................................................................................................................. 5 1.4 RELIANCE ON OTHER EXPERTS .................................................................................... 6 1.5 PROPERTY ....................................................................................................................... 6 1.6 OWNERSHIP .................................................................................................................... 6 1.7 LOCATION ....................................................................................................................... 6 1.8 GEOLOGY ........................................................................................................................ 7 1.9 EXPLORATION STATUS .................................................................................................. 7 1.10 MINERALIZATION .......................................................................................................... 8 1.11 MINERAL RESOURCES AND RESERVES ........................................................................ 8 1.12 DEVELOPMENT AND OPERATIONS ................................................................................ 9 1.12.1 Mining ........................................................................................................ 9 1.12.2 Process Plant ........................................................................................... 10 1.12.3 Schedule ................................................................................................... 10 1.13 AUTHORS’ CONCLUSIONS ............................................................................................ 10 1.14 RECOMMENDATIONS ................................................................................................... 11 2 INTRODUCTION ................................................................................................................... 12 2.1 PURPOSE ........................................................................................................................ 12 2.2 SOURCES OF INFORMATION ........................................................................................ 12 2.3 QUALIFIED PERSONS AND SITE VISITS ....................................................................... 12 2.4 TERMS OF REFERENCE AND UNITS OF MEASURE ..................................................... 13 M3-PN130154 15 January 2014 Revision 0 ii MOUNT HOPE PROJECT FORM 43-101F1 TECHNICAL REPORT 3 RELIANCE ON OTHER EXPERTS .................................................................................. 16 4 PROPERTY DESCRIPTION AND LOCATION ............................................................. 17 4.1 CLAIMS .......................................................................................................................... 17 4.2 OWNERSHIP .................................................................................................................. 22 4.2.1 Grazing Allotments and Agricultural Use .......................................... 23 4.2.2 Survey of Property ................................................................................. 23 4.2.3 Location Map .......................................................................................... 24 4.3 ROYALTIES, AGREEMENTS, AND ENCUMBRANCES ................................................... 24 4.3.1 Advance Royalty ..................................................................................... 25 4.3.2 Production Royalty ................................................................................ 25 4.3.3 Encumbrances ........................................................................................ 25 4.4 ENVIRONMENTAL AND PERMITTING CONSIDERATIONS ........................................... 26 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ........................................................................................................ 30 6 HISTORY ................................................................................................................................. 32 6.1 RECENT HISTORY OF OWNERSHIP OF THE PROJECT ................................................ 33 7 GEOLOGICAL SETTING AND MINERALIZATION .................................................. 35 7.1 REGIONAL GEOLOGY .................................................................................................. 35 7.2 PROJECT AREA GEOLOGY .......................................................................................... 36 7.3 MINERALIZATION ........................................................................................................ 38 7.3.1 Eastern and Western Minerals Systems ............................................. 38 7.3.2 Overlap Zone .......................................................................................... 39 8 DEPOSIT TYPES ................................................................................................................... 40 9 EXPLORATION ..................................................................................................................... 41 10 DRILLING ............................................................................................................................... 42 11 SAMPLE PREPARATION, ANALYSES AND SECURITY .......................................... 44 11.1 SAMPLING METHOD AND APPROACH ......................................................................... 44 11.2 SAMPLE PREPARATION, ANALYSES, AND SECURITY ................................................. 44 12 DATA VERIFICATION ........................................................................................................ 46 12.1 GMI QAQC ................................................................................................................. 46 12.2 CHECK ASSAYS OF EXXON DATA ............................................................................... 49 12.3 CHECK ASSAY SAMPLE PREP AND ASSAY PROCEDURES ......................................... 49 12.4 EXXON QA/QC PROCEDURES .................................................................................... 50 12.5 NEAREST NEIGHBOR GMI VERSUS HISTORIC DRILLING. ....................................... 51 M3-PN130154 15 January 2014 Revision 0 iii MOUNT HOPE PROJECT FORM 43-101F1 TECHNICAL REPORT 12.6 CORRECTIONS TO EXXON MOLYBDENUM OXIDE ASSAYS ....................................... 53 12.7 DIAMOND DRILLING VERSUS RC DRILLING ............................................................. 54 13 MINERAL PROCESSING AND METALLURGICAL TESTING ............................... 55 13.1 COMMINUTION ............................................................................................................. 55 13.1.1 Comminution Testing and Modeling ................................................... 55 13.1.2 Comminution Test Results and Circuit Design .................................. 56 13.1.3 Design of Grinding Circuit .................................................................... 56 13.1.4 Update of Grinding Circuit Design .....................................................
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