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Prodigy Gold Incorporated: Mineral Resource Estimate Update, Magino Gold Project, Ste. Sault Marie Mining District, Ontario Project No. V1111
NI 43-101 Technical Report 2 November 2011
Office Locations IMPORTANT NOTICE
Perth This report was prepared as a National Instrument 43-101 Technical 87 Colin St, West Perth WA 6005 Report, in accordance with Form 43-101F1, for Prodigy Gold Incorporated AUSTRALIA by Snowden. The quality of information, conclusions, and estimates PO Box 77, West Perth WA 6872 contained herein is consistent with the level of effort involved in Snowden’s AUSTRALIA services, based on: i) information available at the time of preparation, ii) Tel: +61 8 9213 9213 data supplied by outside sources, and iii) the assumptions, conditions, and Fax: +61 8 9322 2576 qualifications set forth in this report. This report is intended to be used by ABN: 99 085 319 562 Prodigy Gold Incorporated, subject to the terms and conditions of its [email protected] contract with Snowden. That contract permits Prodigy Gold Incorporated Brisbane to file this report as a Technical Report with Canadian Securities Level 15, 300 Adelaide Street Regulatory Authorities pursuant to provincial securities legislation. Except Brisbane QLD 4000 AUSTRALIA for the purposes legislated under provincial securities law, any other use of PO Box 2207, Brisbane QLD 4001 this report by any third party is at that party’s sole risk. AUSTRALIA 0 2011 Tel: +61 7 3231 3800 Fax: +61 7 3211 9815 ABN: 99 085 319 562 All rights are reserved. No part of this document may be reproduced, [email protected] stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the Johannesburg prior written permission of Snowden. Technology House ,Greenacres Office Park, Cnr. Victory and Rustenburg Roads, Victory Park JOHANNESBURG 2195 SOUTH AFRICA PO Box 2613, Parklands 2121 SOUTH AFRICA Tel: + 27 11 782 2379 Fax: + 27 11 782 2396 Reg No. 1998/023556/07 [email protected] Vancouver Suite 550, 1090 West Pender St, VANCOUVER BC V6E 2N7 CANADA Tel: +1 604 683 7645 Fax: +1 604 683 7929 Reg No. 557150 By Andrew F. Ross [email protected] Qualified M.Sc., P. Geo., CP, FAusIMM, Calgary Person Senior Principal Consultant...... Suite 850, 550 11th Avenue SW CALGARY, ALBERTA T2R 1M7 Tel +1 403 452 5559 Fax +1 403 452 5988 [email protected] Belo Horizonte Afonso Pena 2770, CJ 201 A 205 Funcionários, 30.130-007, BELO HORIZONTE MG BRASIL Tel: +55 (31) 3222-6286 Fax: +55 (31) 3222-6286 [email protected] Oxford Issued by: Vancouver Office Lvl 3, The Magdalen Centre 1 Robert Robinso Doc Ref: 111216_V1111_Final_ProdigyGold_MR_NI43101.docx Avenue The Oxford Science Park OXFORD OX4 4GA Last Edited: 16/12/2011 4:26:00 PM Tel: +44 1865 784 884 Fax: +44 1865 784 888 Number of copies [email protected] Snowden: 2 Website Prodigy Gold Incorporated: 2 www.snowdengroup.com
Prodigy Gold Incorporated: Mineral Resource Estimate Update, Magino Gold Project, Ste. Sault Marie Mining District, Ontario NI 43-101 Technical Report
1 Summary ...... 8 1.1 Geology and Mineralization ...... 8 1.2 Mineral Resource Estimate ...... 9 1.3 Recommendations ...... 11
2 Introduction ...... 12
3 Reliance on other experts ...... 13
4 Property description and location ...... 14 4.1 Location ...... 14 4.2 Status of mining titles ...... 14 4.3 Environmental matters ...... 17
5 Accessibility, climate, local resources, infrastructure and physiography ...... 19 5.1 Accessibility ...... 19 5.2 Climate ...... 19 5.3 Local resources ...... 19 5.4 Physiography ...... 19
6 History ...... 21 6.1 Prior to 1940s ...... 21 6.2 1972 to 1996 McNellen Resources and Muscocho Explorations ...... 22 6.2.1 Comments on drilling and core sampling ...... 26 6.2.2 Comments on analytical laboratory ...... 26 6.3 1996 – 2010 Golden Goose ...... 26 6.3.1 1996...... 26 6.3.2 1997...... 26 6.3.3 1998-1999...... 28 6.3.4 2000...... 29 6.3.5 2001...... 30 6.3.6 2002...... 30 6.3.7 2004...... 30 6.3.8 2006...... 31 6.3.9 2007...... 32 6.3.10 2008...... 32 6.3.11 2009...... 33 6.3.12 2010...... 33 6.3.13 Summary ...... 34
7 Geological setting and mineralization ...... 39 7.1 The Archean Superior Province ...... 39 7.2 The Wawa Sub-province ...... 39
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7.3 The Michipicoten greenstone belt ...... 41 7.4 The geology of the Magino mine area ...... 43 7.5 Gold mineralization ...... 45 7.6 Structures associated with gold mineralization ...... 47 7.7 Current view on mineralization controls and identification of ore zones ...... 48
8 Deposit types ...... 50
9 Exploration ...... 53
10 Drilling ...... 54 10.1 Prodigy drilling ...... 54 10.1.1 Type and extent ...... 54 10.1.2 Procedures followed ...... 54 10.1.3 Relevant results ...... 55 10.1.4 Factors that could materially impact the accuracy and reliability of the results ...... 71 10.1.5 Drill plan ...... 71 10.1.6 Examples of drill sections ...... 72
11 Sample preparation, analyses and security ...... 76 11.1 Sampling method and approach ...... 76 11.2 Sample preparation methods and quality control measures employed before dispatch of samples ...... 76 11.2.1 2009 - 2010 Golden Goose program ...... 76 11.2.2 2010 2011 Kodiak and Prodigy program ...... 77 11.2.3 Statement ...... 77 11.3 Analytical laboratories ...... 78 11.3.1 Accurassay Laboratories Ltd ...... 78 11.3.2 ALS Chemex ...... 78 11.4 Sample splitting and reduction ...... 78 11.4.1 Accurassay Laboratories Ltd ...... 78 11.4.2 ALS Chemex ...... 78 11.5 Analytical procedures ...... 79 11.5.1 Accurassay Laboratories Ltd ...... 79 11.5.2 ALS Chemex ...... 79 11.6 Quality control ...... 80 11.6.1 2009 - 2010 Golden Goose program ...... 80 11.6.2 Accurassay Laboratories Ltd ...... 80 11.6.3 2010 Kodiak sampling program ...... 80 11.7 Prodigy QAQC for 2011 ...... 81 11.8 Specific gravity determinations ...... 86
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11.9 Author’s opinion on 2011 sample preparation, security and analytical procedures ...... 86
12 Data verification ...... 87 12.1 Site verification ...... 89
13 Mineral processing and metallurgical testing ...... 90 13.1 Historic test data and reports...... 90 13.1.1 Grindability and CIL Efficiency ...... 90 13.2 September 2011 testwork ...... 91
14 Mineral resource estimates ...... 92 14.1 Summary...... 92 14.2 Disclosure ...... 92 14.2.1 Known issues that materially affect mineral resources ...... 92 14.3 Assumptions, methods and parameters ...... 95 14.3.1 Data provided ...... 96 14.3.2 Geological interpretation and modelling ...... 98 14.3.3 Compositing of assay intervals ...... 98 14.3.4 Consideration of grade outliers and estimation method ...... 101 14.3.5 Variogram analysis ...... 101 14.3.6 Establishment of block models ...... 103 14.3.7 Grade interpolation parameters ...... 104 14.3.8 Density assignment ...... 104 14.3.9 Prior mining ...... 104 14.3.10 Resource classification ...... 104 14.3.11 Resource reporting ...... 105
15 Adjacent properties ...... 107
16 Other relevant data and information...... 108
17 Interpretation and conclusions ...... 109
18 Recommendations ...... 110
19 References ...... 111
20 Certificate of author, date and signature page ...... 118
Tables Table 1.1 Indicated Mineral Resource estimate – November 2011 ...... 10 Table 1.2 Inferred Mineral Resource estimate – November 2011 ...... 10 Table 4.1 Description of mining title types in Ontario ...... 14
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Table 6.1 Historical tonnages and grades estimated for the Magino Joint Venture Gold Project of McNellen Resources ...... 23 Table 6.1 Historical summary ...... 35 Table 10.1 Prodigy drilling details ...... 54 Table 10.2 Prodigy drillhole mineralization intersect results ...... 55 Table 13.1 Grindability data ...... 90 Table 13.2 Bottle leach results ...... 91 Table 13.3 Bottle leach results – samples at minus 150 microns ...... 91 Table 14.1 Indicated Mineral Resource estimate – November 2011 ...... 92 Table 14.2 Inferred Mineral Resource estimate – November 2011 ...... 92 Table 14.3 Prodigy density data ...... 93 Table 14.4 Statistics for all 5 m composites ...... 99 Table 14.5 Statistics for mineralized composites ...... 100 Table 14.6 Variography by domain ...... 102 Table 14.7 Indicated mineral resource reported for a range of cut-off grades ...... 105 Table 14.8 Inferred resource reported for a range of cut-off grades ...... 106
Figures Figure 4.1 Map showing the location of the Magino property in Ontario ...... 16 Figure 4.2 Claim map of the Magino property ...... 17 Figure 5.1 Topography and accessibility of the Magino property ...... 20 Figure 7.1 Tectonic subdivisions of the Superior Province within northern Ontario ...... 40 Figure 7.2 Major geological elements of the eastern Wawa Sub-province ...... 40 Figure 7.3 Mineral belts in the Michipicoten-Shebandowan region of the Wawa Sub-province ...... 41 Figure 7.4 Geology of the Magino mine area ...... 44 Figure 7.5 Historical G Zone in the 24+75E drift ...... 46 Figure 7.6 Gold-bearing veins on the face of the 23+80E drift ...... 46 Figure 8.1 Inferred crustal levels of gold deposition showing the different types of lode gold deposits and the inferred deposit clan ...... 50 Figure 8.2 Schematic diagram illustrating the setting of greenstone-hosted quartz-carbonate vein deposits...... 51 Figure 8.3 Location of the Goudreau Lake deformation zone ...... 52 Figure 10.1 Plan view of Prodigy drillhole locations ...... 72 Figure 10.2 Drill cross section 300SW...... 73 Figure 10.3 Drill cross section 1375SW ...... 74 Figure 10.4 Drill cross section 1180SW ...... 75 Figure 11.1 Gold assays for coarse blank inserted by Prodigy ...... 81
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Figure 11.2 Gold assays for standard CDN-BL-7 ...... 81 Figure 11.3 Gold assays for standard CDN-GS-1F ...... 82 Figure 11.4 Gold assays for standard CDN-GS-2E ...... 82 Figure 11.5 Gold assays for standard CDN-GS-30B ...... 82 Figure 11.6 Gold assays for standard CDN-GS-2G...... 83 Figure 11.7 Gold assays for standard CDN-GS-1G...... 83 Figure 11.8 Gold assays for standard CDN-GS-1P5C ...... 83 Figure 11.9 Gold assays for standard CDN-GS-2E ...... 84 Figure 11.10 Gold assays for standard CDN-GS-2G...... 84 Figure 11.11 Gold assays for standard CDN-GS-3G...... 84 Figure 11.12 Gold assays for standard CDN-GS-4B ...... 85 Figure 11.13 Gold assays for standard CDN-GS-7B ...... 85 Figure 11.14 Gold assays for standard CDN-GS-P2 ...... 85 Figure 11.15 Gold assays for standard CDN-GS-P4A ...... 86 Figure 14.1 Comparison of declustered composites – surface drilling vs underground drilling less than 50 metres total length...... 94 Figure 14.2 Comparison of declustered composites – surface drilling vs underground drilling greater than 50 metres total length ...... 95 Figure 14.3 Distribution of underground drillholes ...... 97 Figure 14.4 Distribution of surface drillholes ...... 98 Figure 14.5 Log histogram of all 5 m composites ...... 99 Figure 14.6 Log histogram of 5 m gold composites for mineralized zones ...... 100 Figure 14.7 Log probability plot indicating mixed populations ...... 101
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1 Summary The purpose of this Technical Report is to provide an update to the February 2011 Resource Estimate (Ross 2011) and to support the news release of 2 November 2011 in which an updated Mineral Resource estimate was reported for the Magino gold property. The February 2011 Resource Estimate was the basis for a preliminary economic assessment (PEA) completed in April 2011 (Ross et al., 2011). That PEA is now superseded and an updated PEA will be reported in a subsequent technical report to be issued by Wardrop, a Tetra Tech Company. In September 2011, Snowden Mining Industry Consultants Inc. (“Snowden”) was requested by Prodigy Gold Incorporated (“Prodigy”), to complete an updated Mineral Resource Estimate for the Magino gold project in compliance with National Instrument 43- 101 and Form 43-101F1. Prodigy was formed in January 2011 by the unification of Kodiak Exploration Limited (“Kodiak”) and Golden Goose Resources Incorporated (“Golden Goose”). The Magino property is approximately 40 km north-east of the town of Wawa, Ontario, and consists of a former underground mine that was active in the period 1988 to 1992, and processed 768,678 tons at a recovered grade of 0.137 oz/t Au to produce 105,543 ounces of gold. Since closure of the underground mine there have been several studies by Golden Goose to evaluate the feasibility for re-commencing underground operations and / or commencing open pit operations. The intention of Prodigy is to re-assess the Magino gold deposit as an open pittable scenario. Land Manager Mr Randy Sedore confirmed that the issuer’s wholly-owned (i.e., 100% Registered Ownership) land holdings forming the Magino property comprise seven (7) patented mining claims (mining and surface rights), four (4) leased mining claims, and sixty-six (66) unpatented mining claims with a combined area of 5,131,180 acres (2,076.515 hectares). Additionally, on 9 February, 2011 Prodigy announced that it had signed an option agreement with MPH Resources Corp. that allows Prodigy to earn up to a 100% interest in the 128 ha Gould Gold property located adjacent to the Magino property. 1.1 Geology and Mineralization The Magino property is located within the Michipicoten greenstone belt of the Archean Superior Province. The Michipicoten greenstone belt is a structurally and stratigraphically complex assemblage of volcanic, sedimentary and intrusive rocks that were metamorphosed to greenschist and amphibolites facies. Several suites of plutonic rocks ranging in composition from gabbro to monzogranite and syenite occur in and around the Michipicoten greenstone belt. The Magino property is situated in the Goudreau-Lochalsh gold district of the Wawa gold camp. Supracrustal rocks in the Goudreau-Lochalsh district consist of Cycle 2 felsic to intermediate pyroclastic metavolcanics capped by pyrite- bearing ironstone. To the north are pillowed, massive and schistose, mafic to intermediate metavolcanics and minor intercalations of Cycle 3 mafic pyroclastic rock. Several medium- to coarse-grained quartz dioritic to dioritic sills and/or dikes intrude all metavolcanic rocks.
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Prodigy Gold Incorporated: Mineral Resource Estimate Update, Magino Gold Project, Ste. Sault Marie Mining District, Ontario NI 43-101 Technical Report
Gold mineralization at the former Magino mine is dominantly hosted by the Webb Lake stock, which intrudes Cycle 3 mafic volcanic rocks. The Webb Lake stock is a felsic intrusion interpreted as a trondhjemite, but continues to be called a granodiorite in mine terminology. The long axis of the Webb Lake stock is parallel to the regional supracrustal rock stratigraphy. The Webb Lake stock is ENE-striking and has a steep northerly dip. The granodiorite (trondhjemite) contains 5-10% veins of carbonate, quartz, tourmaline and pyrite in various orientations. The current focuses of Prodigy’s evaluation are zones of low-grade gold-bearing quartz- sericite-pyrite mineralization that include narrow higher-grade gold-bearing veins, the target of former underground mining. Prodigy commenced a surface drilling program in early 2011 to in-fill and replace earlier sample data. The database used for the current study update (this report) includes this recent drilling information. 1.2 Mineral Resource Estimate The region of interest covers 1,350 metres of the 075 degree trending Webb Lake grandiorite stock and the alteration zones that aggregate up to 300 metres width, and dip steeply to depths of up to 600 metres. At Magino the Webb Lake stock is covered by up to 30 m thickness of fluvio-glacial material. The felsic and mafic volcanic country rock surrounding the stock does contain examples of low grade mineralization encountered by drilling, however the main focus remains the broad low-grade alteration zones within the stock. A late stage diabase dyke transects the stock. The database provided to Snowden by Prodigy on 16 September 2011 contains 512 surface diamond drillholes (for a total of 103,491 metres; average length 202 m) and 980 underground diamond drillholes (for a total of 60,345 m; average length 62 m). Ninety-four surface drillholes were completed in the period from 1997 to 2009 and comprise HQ and NQ diameter core. All underground drillholes were completed in the period 1986 to 1991 and are dominated by AQ diameter core with some BQ diameter core, clearly clustered around the underground workings and, in some cases subsequently stoped out. Since the sample volumes of the underground drill cores are markedly less than the surface drill cores, and because of potential bias contained within some samples, Snowden elected to use only the assays from the surface drillholes and those underground drill holes relatively unbiased for the grade estimates. The underground diamond drillholes retained for the resource estimates comprised 484 drillholes for a total of 48,896 m, average length 100 m. Assay information from all of the underground drill cores however was used to develop the geological interpretation of the mineralized bodies. A Vulcan block model with cell dimensions of 10m (X) 10m (Y) 5m (Z) was coded to reflect the surface topography, base of overburden, Webb Lake granodiorite contacts, domain solids, and the late stage diabase dyke. A 3D wireframe model of the underground development and stopes was stored as percent volumes in the block model to ensure that the reported mineral resource estimates are depleted for prior mining. The Prodigy geologists have interpreted 17 structural domains to identify the zones of mineralization in the drill cores.
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Gold grades were estimated from 5 m length-weighted un-cut composites into the interpreted mineralized blocks by ordinary kriging, using parameters established from analysis of domain variography. The impact of clustered high gold grades was controlled by using a combination of “sample per hole” restrictions, octant search and maximum distance extrapolation restrictions for grades above 22 g/t Au. Minimum / maximum numbers of composites used for estimation were set to 3 / 14 per block. Discretisation was set to 2 x 2 x 1. Density factors of 2.72 (SG) were assigned to granodiorite and mafic to felsic country rock based on approximately 2,300 new specific gravity determinations of core specimens by Prodigy. A conceptual pit shell was developed by Snowden using Whittle software in order to identify those parts of the block model that have reasonable prospects for eventual economic extraction. Parameters used were: 52 degree (overall pit slope); $1.25 /t mining cost; $1500 per oz gold price; 95% process recovery; $7 /t process cost. Mineralized blocks that lie within the conceptual pit shell have been classified as either Indicated or Inferred Mineral Resource estimates. Blocks lying outside the conceptual pit were left unclassified and have not been reported. Geostatistical parameters from the kriging system were used to identify regions of better confidence estimates. Snowden has applied an Inferred classification to blocks in the mineral resource that lie within low confidence regions and below 150 metres and within the limit of the conceptual pit shell. Above a depth from surface of 150 metres, resource blocks that lie within greater confidence regions have been classified as Indicated resource blocks. Snowden has not classified any Measured blocks after considering the uncertainty in geological interpretation and extent of the underground workings, the high nugget environment, short ranges of gold grade continuity, use of assigned densities and the current drill spacing. Snowden notes that Prodigy Gold has an ongoing drill program to in-fill the existing drill pattern. Mineral Resource estimates for the Magino property are reported in categories of Indicated and Inferred, in accordance with the CIM Definition Standards - For Mineral Resources and Mineral Reserves (CIM Code), as follows:
Table 1.1 Indicated Mineral Resource estimate – November 2011
Reporting Category Gold Gold cut-off Tonnes Grade CIM Density grams ounces grade g/t g/t Au Code X 1,000 Au X 1,000 X 1,000
Indicated 0.35 2.72 67,555 1.00 67,690.5 2,176.3
Table 1.2 Inferred Mineral Resource estimate – November 2011
Reporting Category Gold Gold cut-off Tonnes Grade CIM Density grams ounces grade g/t g/t Au Code X 1,000 Au X 1,000 X 1,000
Inferred 0.35 2.72 54,242 0.99 53,537.3 1,721.2
In the above Mineral Resource tables there may be inconsistencies due to rounding. Estimates are rounded since the figures are not precise calculations.
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There are no Mineral Reserves reported in this Technical Report. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resource will be converted into Mineral Reserve. 1.3 Recommendations The authors make the following recommendations: Continue the current in-fill drilling and sampling program so that all of the historic assay information can be replaced for use in subsequent mineral resource estimates. Where possible, re-sample existing core and ensure QAQC programs are in place, thus making use of much of the historic core. Update the drillhole and sample database with consistent lithogical, alteration and structural records. Complete a new series of 3D interpretations to map the distribution of quartz-sericite- pyrite alteration and veins and define deeper depth mineralization. Consider multi- element assays to assist in characterization of alteration zones and geological interpretation. Use the November 2011 updated resource block model for a preliminary economic assessment. Refine the current 17 structural domain solids to reflect the latest geologic interpretation and to honour alteration zones. Complete a drill hole spacing study report to establish minimum standards for resource to reserve conversion.
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2 Introduction This Technical Report has been prepared by Snowden Mining Industry Consultants (“Snowden”) for Prodigy Gold Incorporated (“Prodigy”). Prodigy was formed from the unification of Kodiak Exploration Limited (“Kodiak”) and Golden Goose Resources Incorporated (“Golden Goose”) in 2011. The purpose of the Technical Report is to support the news release of 2 November 2011 in which an updated Mineral Resource estimate was reported for the Magino gold property located in Ontario. Data provided to Snowden was used as the basis for the study. A Gemcom drillhole and assay database was reviewed by Snowden, and is supported by documentation for numerous drilling programs covering the period from the early 1980s to the present. The author has made two personal inspections of the Magino gold property in 2011 during which time Prodigy was undertaking core drilling programs.
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3 Reliance on other experts The authors have relied upon an opinion provided by Mr Randy Sedore in respect of the status of the mineral titles held by Prodigy’s subsidiary, Golden Goose. This opinion is detailed in Section 4.2.
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4 Property description and location Information in this section has been excerpted from Turcotte, B., and Pelletier, C., (May 2009) and updated. 4.1 Location The Magino property is approximately 40 kilometres (“km”) northeast of the town of Wawa, Ontario, on NTS map sheet 42C/08 (Figure 4.1). The project is located in Finan Township, which falls within the Sault Ste. Marie mining district of Ontario. The Magino mine is about 14 km southeast of the town of Dubreuilville. The approximate UTM coordinates for the geographic centre of the property are 685900E, 5351800N (Zone 16, NAD 83). The approximate position of the Magino mine is 689000E, 5351000N. 4.2 Status of mining titles Mr Randy Sedore acts as the Land Manager for Golden Goose (a subsidiary of the issuer) with regards to the exploration and mining lands that form the Magino property (Figure 4.2). He confirmed on 15 December 2011 that the issuer’s wholly-owned (i.e., 100% Registered Ownership) land holdings forming the Magino property comprise seven (7) patented mining claims (mining and surface rights), four (4) leased mining claims, and sixty-six (66) unpatented mining claims with a combined area of 5,131,18 acres (2,076.515 hectares). The four (4) leased mining claims are contiguous and consist of seven (7) mining titles (SSM 581948 to 581953 and SSM 722481) (Table 4.1). Golden Goose owns the mining and surface rights on these leased mining claims, except mining title SSM 722481 for which Golden Goose owns only the mining rights. The mineralized area hosting the underground workings is located just north of Webb Lake near the south-eastern corner of the property (Figure 4.2).
Table 4.1 Description of mining title types in Ontario
Mining Titles Associated Rights Exploration for mineral substances Unpatented Mining Claims Right to subsurface only Work required for renewal of right 20-year period No obligation or work required Leased Mining Claims Payment of annual fee Surface rights limited to mining activities For life No obligation or work required Patented Mining Claims Payment of annual fee Surface rights limited to mining activities (from Turcotte, B., and Pelletier, C., (May 2009)
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On 1 November, 1985, an agreement was reached between Cavendish Investing Ltd (“Cavendish”) and Muscocho Explorations Ltd (“Muscocho”). At the time, Cavendish Investing Ltd owned a 50% interest in the Magino property, and McNellen Resources Inc. (“McNellen”), formerly Rico Copper (1966) Inc., the other 50%. The agreement stipulated that Muscocho would purchase all of Cavendish’s right, title and interest in and to the Joint Venture with McNellen, and that Cavendish would retain a 10% royalty of Muscocho’s share of net profits derived from its participation in the Joint Venture. The agreement further stipulated that if Muscocho assigns any or all part of its interest in the Joint Venture to another party or parties, it will cause the assignee(s) of such interest to enter into an agreement with Cavendish under which such assignee(s) will assume all of Muscocho’s obligations under the terms of the agreement, including the payment of said royalty to Cavendish. Net profits for the purposes of the above paragraph shall mean the monies received by Muscocho from its interest in the Joint Venture after Cavendish has paid Muscocho for all its costs incidental to the Joint Venture incurred before and after the closing date of the agreement. In 1996, three companies; Muscocho Explorations, McNellen Resources and Flanagan McAdam Resources Inc., combined to form Golden Goose, which emerged with a 100% interest in the Magino property. Golden Goose thus became an assignee of Muscocho’s obligation to pay Cavendish a 10% royalty for its share of the net profits, after reimbursement of all costs incurred by Muscocho since November 1985. Prodigy cannot reasonably estimate the likelihood of a royalty being paid, nor the amount. On 31 August, 2010, Kodiak and Golden Goose announced that they entered into a definitive merger agreement and plan of arrangement dated 30 August, 2010 wherein Kodiak would acquire all of the issued and outstanding shares of Golden Goose. The arrangement effectively combined the assets of both companies on a consolidated basis, with Golden Goose becoming a wholly-owned subsidiary of Kodiak. On 4 January, 2011 Prodigy announced that it was the named unification of Kodiak and Golden Goose. On 9 February, 2011 Prodigy announced that it had signed an option agreement with MPH Resources Corp. that allows Prodigy to earn up to a 100% interest in the 128 ha Gould gold property located adjacent to the Magino property. The option property is identified as numbers 4218037 and 4218038 in Figure 4.2. Prodigy has advised that the terms of the option agreement, subject to TSXV approval, are as follows: Prodigy will pay MPH $10,000 and issue to MPH 50,000 common shares of Prodigy ("Shares") following acceptance by the TSXV of this transaction. Prodigy can earn a 60% interest in the Property within two years of TSXV approval by paying MPH an additional $35,000, issuing MPH an additional 150,000 Shares and incurring expenditures of $250,000. Prodigy can earn a 100% interest in the Property within three years of TSXV approval by paying MPH an additional $25,000 ($70,000 in aggregate), issuing MPH an additional 200,000 Shares (400,000 Shares in aggregate), incurring additional expenditures of $500,000 ($750,000 in aggregate) and granting MPH a net smelter returns royalty of 1%, which may be repurchased for $1,000,000. The Property is subject to an additional 2% net smelter returns royalty held by prior owners, half of which may be acquired for $1,000,000.
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Figure 4.1 Map showing the location of the Magino property in Ontario
(after Turcotte, B., and Pelletier, C., (May 2009))
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Figure 4.2 Claim map of the Magino property
4.3 Environmental matters Golden Goose retained AMEC Earth & Environmental, a division of AMEC Americas Limited, to carry out a dam safety inspection of the tailings dams at the Magino mine (Yong et al., 2008). The inspection was conducted in accordance with guidelines applicable to structures in Ontario, and also took into account the site’s closure plan requirements and the recommendations provided in AMEC’s previous dam safety inspection report (AMEC Earth and Environmental Ltd, 2002). With the exception of some requirements for erosion protection maintenance, all three dams appeared to be in stable condition with no visible signs of distress or instability. The conditions of the dams are not expected to change because the tailings are no longer being discharged to the primary pond. Since 1992, the site has been kept on a care and maintenance basis (temporary suspension) during which time the issuer was pursuing financing opportunities that could potentially lead to the resumption of mining operations. Personnel were kept on site to provide security and ensure compliance with the Certificate of Approval (C of A #4-0115- 88-896) and other environmental requirements. In 1996, an authorization to reduce sampling frequency was granted for the Magino mine. These changes can only be implemented when the mine is not in operation. Once the mine reactivates, the frequencies specified in the Certificate of Approval must be re-implemented. The annual toxicity sample for the Rainbow Trout 96-hour LC50 bioassay toxicity test was collected from the secondary polishing pond in June 2009. Water was no longer being pumped from the mine, so the mine water settling pond was dry and sampling the pond was not required.
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A detailed mine site characterization was completed for the Magino mine as part of the mine closure plan. The original plan, titled “Magino Mine Closure Plan – Muscocho Explorations Limited” was prepared in October 1992 by Environmental Applications Group Limited (Young and Simms, 1992). It was revised in 1993 by HBT AGRA Limited (Young and Simms, 1993). The mine site characterization is part of the February 2003 amendment titled “Closure Plan - Amendment No.1, Golden Goose Resources Inc., Magino Mine Site” (Dyck and Bleiker, 2003). The changes in the amendment are in accordance with the requirements laid out in Part VII of the Ontario Mining Act and have been formatted as per Ontario Regulation 240/00 and the associated Mine Rehabilitation Code of Ontario. The 2003 closure plan will have to be updated to reflect the current site conditions and the required Financial Assurance for completing mine site rehabilitation. In addition, the following documents will be required if mining operations resume: A Certificate of Authorization for Air under the Environmental Protection Act, Regulation 346. A permit to take water (PTTW) for dewatering of the mine. A permit to take water (PTTW) from Webb Lake. Waste Generator Registration from the Ontario Ministry of Environment (MOE), for waste generated on site such as oils, solvents, etc. A Notice of Project Status (NOPS) must be submitted to change the current status of the mine from Temporary Suspension to Advanced Exploration or Mine Production status under Regulation 240/00. In addition, a Notice of Project must be submitted to the Ministry of Labour. A First Nation Consultation must be held with any First Nations potentially affected by the project. Such consultations would address a requirement in Ontario's mining regulations, as well as various requirements for other approvals. The project lies within the Finan and Jacobson townships. The Michipicoten and Missanabie Cree First Nations will have to be apprised and the consultation process initiated. The Métis Nation of Ontario should also be consulted. In 2010 AMEC Earth & Environmental conducted a hydro-geological study for Golden Goose (McBride, T.I. and Duckworth, P., 2010). On 29 September 2011, Prodigy announced that it had signed an agreement with EBA, a Tetra Tech Company, to provide environmental baseline studies at Magino.
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Prodigy Gold Incorporated: Mineral Resource Estimate Update, Magino Gold Project, Ste. Sault Marie Mining District, Ontario NI 43-101 Technical Report
5 Accessibility, climate, local resources, infrastructure and physiography Information in this section has been excerpted from Turcotte, B., and Pelletier, C., (May 2009) and updated. 5.1 Accessibility The closed Magino mine is located in Finan Township, Ontario, Canada, approximately 40 km northeast of Wawa. The Magino mine can be reached by travelling along a 14-km all-weather gravel road (Chemin Goudreau) that turns off Highway 519 just west of the town of Dubreuilville (Figure 5.1). Dubreuilville is on Highway 519, 30 km east of the junction of highways 17 and 519. This junction is about 40 km north of Wawa on Highway 17. The Magino mine is also connected to the rail sidings of Lochalsh (14 km to the east, Canadian Pacific Railway) and Goudreau (7 km to the west, Algoma Central Railway) by means of a gravel road. A 44-kV power line extends from Goudreau to Lochalsh and currently services the Magino mine. Most of the former surface buildings have been dismantled, and only the electrical and carpenter shops remain in service. The underground workings have been flooded since the early 1990s and are sealed to prevent entry. 5.2 Climate The mean annual temperature for the area is slightly above the freezing point at 1 °C. The average July temperature is 20 °C and the average January temperature is -15 °C. Average annual precipitation is 650 mm. Rainfall is highest in September, averaging 90 mm. Snow typically falls from October to May, but the peak is from November to March when the monthly average reaches 30 mm (expressed in mm of water). 5.3 Local resources The area is well serviced by mining and milling industries. The town of Dubreuilville, population 900, is the closest service community. The Island Gold mine (operated by Richmont) is 1.5 km east of the Magino mine, and the Eagle River mine (Wesdome Gold Mines) is 80 km to the west. The Hemlo operations (Barrick Gold Corp) are located approximately 150 km to the northwest. General labour and experienced workers are readily available in Wawa, Sault Ste. Marie and Thunder Bay. 5.4 Physiography The Magino mine is located in the geological Wawa Sub-province of the Canadian Shield. The topography of the area is characterized by low ridges and hills (up to 50 m of relief), flanked by generally flat areas of glacial outwash, swamps and numerous lakes and bogs.
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Prodigy Gold Incorporated: Mineral Resource Estimate Update, Magino Gold Project, Ste. Sault Marie Mining District, Ontario NI 43-101 Technical Report
Figure 5.1 Topography and accessibility of the Magino property
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Prodigy Gold Incorporated: Mineral Resource Estimate Update, Magino Gold Project, Ste. Sault Marie Mining District, Ontario NI 43-101 Technical Report
6 History Information in this section has been excerpted from Turcotte, B., and Pelletier, C., (May 2009) and updated with information from Turcotte et al (2010). 6.1 Prior to 1940s The area around the towns of Goudreau and Lochalsh has been prospected for many years. The discovery of iron ore around the turn of the twentieth century in the Michipicoten area southwest of Wawa led to a search for similar deposits along the iron ranges further north. In places, the iron formations near Goudreau were found to contain pyrite in sufficient quantity to form the basis of a mining industry of considerable importance at one time. Between 1916 and 1919, about 250,000 tons of pyrite were produced, but a lack of markets for sulphuric acid at the close of World War I led to the abandonment of the mines and the dismantling of the acid plants that had been erected 2 miles east of Goudreau. Meanwhile, gold was discovered in 1918 in the vicinity of Goudreau, and prospecting and mining have continued since then, being particularly active from the mid-1920s to the beginning of World War II. The available records show that gold production from the Goudreau area was somewhat sporadic. In the fall of 1917, D.J. McCarthy and W.J. Webb of Sault Ste. Marie staked the current patented claims for pyrite after Rand Consolidated and Nichols Chemical Company started their operations in the district. Gold was discovered on the property on what is now claim 2050. Between then and 1925, when McCarthy-Webb Goudreau Mines Limited was formed to take over and develop the claim group, two shallow shafts or pits had been sunk and some stripping and 1,100 feet (335.3 m) of surface diamond drilling had also been completed. Between 1925 and 1933, McCarthy-Webb Goudreau Mines excavated test pits and trenches on the property while trying to interest major companies. One such company was Consolidated Mining and Smelting Company, which drilled an unknown number of metres (“m”) in five (5) surface holes. McCarthy-Webb Goudreau Mines constructed and operated a small test mill with a daily capacity of 25 tons. In 1934, this mill processed 421 tons of ore and extracted 144 ounces of gold for a recovered gold grade of 0.342 oz/t1. In 1935, Algoma Summit started underground development by sinking an inclined shaft at -33° on the Grey Vein to a vertical depth of 100 feet (30.5 m). During 1936, a 500-ton-per- day mill was constructed, consisting of amalgamation and flotation sections. According to the existing records, underground development was minor. A report written in 1937 by consulting mining engineer, M.C.H. Little, states that extremely poor mining practices were in effect throughout the initial production stage, resulting in a significant amount of over-break in the stopes (dilution up to 100-200%), and the processing of substantial amounts of waste rock derived from development drifting and cross-cutting. Poor production planning also resulted in the initial mill feed coming from low-grade sections of the D-Zone where ground conditions were exceptionally poor as a result of the hanging wall felsite. Once the D-Zone open cut was abandoned, mill recoveries improved, though it only operated at 25% efficiency.
1 Tons = short tons; oz/t = ounces per short ton; tonnes or t = metric tons
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Prodigy Gold Incorporated: Mineral Resource Estimate Update, Magino Gold Project, Ste. Sault Marie Mining District, Ontario NI 43-101 Technical Report
Between April and August 1937, the mill processed 26,801 tons of ore from the open pit. The grade was 0.042 oz/t and 1,125 ounces of gold were extracted. Gold recovery in the mill was about 79%. At the end of August 1937, production from the open pit was abandoned and ore came only from underground stopes. Production continued through to 1938 when the inclined shaft was deepened to a vertical depth of 200 feet. Algoma Summit apparently developed and mined some stopes in the A-Zone and D-Zone, but mining conditions did not improve that year. Toward the end of 1938, control of the property passed to a newly formed company called Magino Gold Mines Ltd. The company quickly began a detailed underground exploration program consisting of diamond drilling, mapping, sampling and drifting in an effort to develop a proven ore reserve inventory. From 1934 to 1939, the company drilled twenty-three (23) underground diamond drillholes totalling 4,190 feet (1,277 m). From 1938 to 1940, Algoma Summit and Magino Gold Mines Ltd drifted 3,613 feet (1,101 m) and cross-cut 945 feet (288 m) on the first level, and drifted 2,248 feet (685 m) and cross-cut 757 feet (230 m) on the second level. In 1939 and 1940, Magino Gold Mines Ltd drilled forty-two (42) underground diamond drillholes totalling 2,124 feet (647 m). Just before Magino Gold Mines acquired the property, the M. J. O’Brien interests, who operated the nearby Cline gold mine, drilled a series of holes east of the mill buildings and discovered a new gold zone referred to as the E-Zone. Monthly reports from 1940 referred to these drillholes. By the late 1940s, Magino was unable to obtain the financing needed to continue ore development, and there was undoubtedly a growing shortage of men and supplies due to wartime rationing. As a consequence, the mine was closed and the mill sold in 1942. Between 1934 and 1939, 116,627 tons were milled with a grade recovery of 0.075 oz/t (8,776 ounces). 6.2 1972 to 1996 McNellen Resources and Muscocho Explorations The Magino property lay dormant until 1972 when Mr. C. McNellen of Toronto carried out a privately financed six (6)-hole drilling program totalling 2,000 feet (610 m). The property remained idle until 1981 when Rico Copper (1966) Limited (later renamed McNellen Resources Inc.) conducted a diamond drilling program to evaluate the depth continuity of the A-Zone and B-Zone, and the lateral continuity of the E-Zone. A total of 6,915 feet (2 107 m) was drilled in sixteen (16) holes. McNellen Resources entered into a joint venture with Cavendish Investing Ltd on 25 September, 1981. Under the terms of the agreement, Cavendish could earn an undivided 50% interest in the property by spending C$900,000 on the property. Work on the property started on 6 October, 1981. Surface facilities were installed and dewatering of the underground workings dewatered. Pumping started on 26 November, 1981 and was completed on 21 January, 1982.
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Prodigy Gold Incorporated: Mineral Resource Estimate Update, Magino Gold Project, Ste. Sault Marie Mining District, Ontario NI 43-101 Technical Report
S. L. MacDougall O.L.S. of Sault Ste. Marie conducted a surface survey in 1981. The surface drillholes from the 1981 summer drilling were tied into several surface triangulation points and the old mill foundation. A sun-shot was taken to determine true north. The underground workings were resurveyed and the survey carried to surface and tied into the surface survey. A channel sampling program was carried out on both levels. Channel samples were cut into the drift backs using a stoping machine and a power air hammer. A total of 1,723 individual samples were collected. Seventy-five (75) test holes, 20 feet long (6.1 m), were drilled into the drift walls. Sludge samples were assayed. Cuttings were collected every 2.5 feet (0.76 m) for a total of 600 samples. A total of 8,581 feet (2,615 m) of forty-two (42) AQ holes was completed underground. Old core was re-logged and re-sampled. During the fall of 1982, a total of 6,798 feet (2,072 m) of surface drilling was completed in thirty-eight (38) holes. Old drill core was re-logged and about 683 new samples were taken, revealing a number of “ore-grade” intersections. Magnetic, electromagnetic and geological surveys were also carried out on the Magino property. In 1983, James Wade Engineer Ltd was contracted by McNellen Resources Inc., to prepare a pre-feasibility study for the Magino Joint Venture Gold Project. James Wade Engineer Ltd calculated a mineral inventory estimate over a minimum of 4.0 feet (1.2 m) and at two “cut back” levels for high-grade assays. Table 6.1 presents the reported tonnages and grades.
Table 6.1 Historical tonnages and grades estimated for the Magino Joint Venture Gold Project of McNellen Resources2
Classification Short tons Grades cut to 2 oz Grades cut to 1 oz Proven 17,091 0.220 0.168 Probable 151,876 0.214 0.176 Possible 120,913 0.190 0.163 Inferred 70,623 0.150 0.142 Proven + Probable 168,967 0.215 0.175
James Wade Engineer Ltd concluded that the 1983 mineral inventory was insufficient to support a viable independent mining and milling operation on the property given the gold prices of the early 1980s. The report also stated that reserves of three-quarters to one million tons would be required to support this scale of mining using a mill with a capacity of 500 tons per day.
2 Resources and / or reserves reported are historical. These historical “resources” and/or “reserves” should not be relied upon because it is unlikely they conform to current Regulation 43-101 criteria or to CIM Definition Standards, and they have not been verified to determine their relevance or reliability. They are included in this section for illustrative purposes only and should not be disclosed out of context.
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Prodigy Gold Incorporated: Mineral Resource Estimate Update, Magino Gold Project, Ste. Sault Marie Mining District, Ontario NI 43-101 Technical Report
At the request of Prophet Resources Ltd and June Resources Inc., D. A. Bourne, a professional engineer and consulting geologist, carried out a re-assessment and evaluation of the Magino gold mine in 1984. The mineral inventory was evaluated at 228,734 tons2 grading 0.35 oz/t Au to a vertical depth of 400 feet (122 m) and over a minimum mining width of 4.0 feet (1.20 m). The “cut back” level for high-grade assays was 2 oz. Prior to a production decision and in order to progress to a proper feasibility study, Donald A. Bourne recommended a program of 18,000 feet (5,485 m) of surface diamond drilling. From 5 July to 19 September, 1984, McNellen Resources completed 5,122 feet (1,561 m) of surface diamond drilling in twenty (25) holes on the Magino property without Prophet Resources Ltd or June Resources Inc. Muscocho Explorations Ltd acquired a 50% interest in the property from Cavendish Resources in the fall of 1985. From September to December, they carried out a surface drilling program west of the main mine workings. During this period, twenty-nine (29) diamond drillholes were completed on the Magino property for a total of 16,441 feet (5,011 m). The objective of the program was to delineate the gold-bearing zones outlined by McNellen Resources in 1984. Surface drilling continued in 1986. During the period of June 1986 to December 1986, sixty-four (64) diamond drillholes (BQ diameter) were drilled on the Magino property for a total of 12,372 feet (3,771 m). Exploratory underground development started in June. A ramp was collared at 25+00 E, 5+50 S. From June to December 1986, 3,075 feet (937 m) of underground advances were completed, consisting of 1,900 feet (579 m) of ramp, 755 feet (230 m) of crosscut (the crosscut was established on line 20+50 E), and 420 feet (128 m) of drifting. Five (5) drift headings were driven on three potential ore zones, 200 feet (61 m) below surface. The haulage ramp was collared south of the granodiorite stock, and the dimensions were 10 feet (3 m) by 16 feet (4.9 m). The best drift results, based on face sampling, included 0.298 oz/t over an 8.0-foot horizontal width along a strike length of 120 feet (35.50 m), and 0.25 oz/t over a 4.0-foot horizontal width along a strike length of 50 feet (15 m). A total of 5,508 feet (1,679 m) of underground drilling in twelve (12) diamond drillholes (AQ diameter), completed from the ramp, helped delineate eight (8) potential ore zones (A through H) east of the crosscut between sections 2070E and 2450E. Estimated property-wide “inferred reserves”, as at the end of 1986, stood at 1,926,645 tons grading 0.251 oz/t to the 500 foot level3. These reserves were derived from four laterally contiguous zones: Mine, North-east, West and West Extension (Bourne et al., 1987). Sample processing and assaying was conducted on-site from 1986 (Magino JV 1986 Year End report). Drillholes (with few exceptions) were sampled in their entirety. Samples were analysed for gold either by AA (“atomic absorption”) or FA (“fire assay”) methods, or by both methods if the primary AA value was greater than 800 ppb Au (0.8 g/t Au). On-site assaying was done on 20 g pulp by AA and where the value exceeded 800 ppb then the coarse reject fraction was re-assayed using a 1 assay-ton gravimetric FA. The reject was crushed to 3/8 inch. Consequently obtaining a representative split of discrete particles of gold was not likely (Perkins, 1997).
3 Resources and / or reserves reported are historical. These historical “resources” and/or “reserves” should not be relied upon because it is unlikely they conform to current Regulation 43-101 criteria or to CIM Definition Standards, and they have not been verified to determine their relevance or reliability. They are included in this section for illustrative purposes only and should not be disclosed out of context.
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Prodigy Gold Incorporated: Mineral Resource Estimate Update, Magino Gold Project, Ste. Sault Marie Mining District, Ontario NI 43-101 Technical Report
Mining and construction of a mill with a capacity of 400 tons per day started in 1987. Surface drilling continued early in 1987. From January 1987 to December 1987, ninety- two (92) diamond drillholes (BQ diameter) were drilled on the Magino property for a total of 54,359 feet (16,569 m). An additional 51,330 feet (15,645 m) were drilled underground from drifts in 187 diamond drillholes (AQ diameter). Underground development was also carried out. The first gold bar was poured in June of 1988 and production began in October of 1988. From February 1988 to December 1988, Muscocho and McNellen drilled 213 underground diamond drillholes totalling 57,434 feet (17,506 m). Between January 1988 and June 1988, nine (9) surface holes were completed for a total of 19,545 feet (5,957 m). Underground development and mining work was also carried out. There was no surface drilling in 1989, although 53,493 feet (16,305 m) were drilled underground from drifts in 293 diamond drillholes. Underground development and mining work was also carried out. By the end of December 1989, the mine had processed 202,764 tons of ore, which returned 29,350 ounces of gold for an average recovered grade of 0.145 oz/t. From 1988 to sometime in 1989, mining was mainly accomplished by shrinkage stoping, which produced an average grade of 0.20 oz/t Au. In 1989, mill throughput was increased to 640 tons per day and production was mainly from long-hole stopes at an average grade of 0.12 oz/t. The reduced mining cost for the long-hole stopes was offset by substantial dilution, with a resultant increase in the cost per ounce mined. In 1990, underground drilling amounted to 15,178 feet (4,626 m) in 166 holes, compared to only 1,081 feet (329 m) in 13 holes in 1991. There was no surface drilling in either year, although underground development and mining work continued. Neither underground nor surface drilling was carried out in 1992. The 650 ramp was driven down to a depth of 685 feet (back elevation), and work was started to open up the exploration/mining level. Almost 1,100 feet of exploration drifting and cross-cutting was carried out. Several rounds of the 650 exploration drift were mucked to the mill. The 680 level was ready for further detailed exploration, which was considered necessary if it was to be established as the future source of mill feed. The mine closed in mid-1992 due to high operating costs, and the underground workings were allowed to flood. From 1988 to 1992, the Magino mine processed 768,678 tons at a recovered grade of 0.137 oz/t Au to produce 105,543 ounces of gold. The total production from twenty-eight (28) shrinkage stopes was 177,486 tons with a grade of 0.217 oz/ton (38,572 ounces). The total production from thirty-four (34) long-hole stopes was 371,285 tons with a grade of 0.118 oz/ton (43,938 ounces). Three stopes were mined using a combination of long-hole and shrinkage methods, producing 53,766 tons with a grade of 0.177 oz/ton (9,534 ounces). Essentially, the excess dilution within long-hole stopes seemed to be a major factor in the reduced grades from these stopes (Nielsen, 1995). The average long-hole stope had a width in excess of 10.0 feet (3 m). The lower operating costs of the long-hole mining method were not sufficient to offset the dilution factor (Nielsen, 1995). In February 1995, Muscocho Explorations Ltd requested that R. Bruce Graham and Associates Ltd carry out a technical review of the Magino mine property. Conclusions released by the author, F. W. Nielsen, included: (1) the mining methods resulted in excessive dilution on the relatively narrow, high-grade zones and veins; (2) the zones which were thought to join up, both along strike and up and down dip, were in fact discontinuous; (3) there are no proven reserves left in the underground mine workings; and (4) there remain numerous narrow, high-grade drill intersections, indicating that a similar mineralized environment occurs throughout the Webb Lake granodiorite, especially at depth.
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Prodigy Gold Incorporated: Mineral Resource Estimate Update, Magino Gold Project, Ste. Sault Marie Mining District, Ontario NI 43-101 Technical Report
6.2.1 Comments on drilling and core sampling Drill logs for the period do not always describe the core diameter. Where this information is recorded it is clear that surface drilling was generally BQ diameter and underground drilling was either BQ or AQ diameter (though several drillhole cores are recorded as EX). Surface and underground BQ core, when originally split, was with a mechanical splitter which would result in many broken fragments and poor sample representativity (Bloom, 2009). Drill logs often indicate that underground core was either, sampled in its entirety, or split. It is likely that BQ core was either split or sampled entirely, and that AQ and EX core was sampled entirely. 6.2.2 Comments on analytical laboratory There currently is no documentation to confirm the quality of sample processing and analytical determinations performed by the Magino mine assay laboratory during the period of mine operations (late 1980s to early 1990s). In 1997, it was considered that sample assaying procedure used at the mine was not standard industry practice and studies indicated that a rigorous check assay program was required (Perkins, 1997). Accordingly several studies have been undertaken in the Golden Goose period to understand whether sample representativity and analytical bias is an issue for the deposit which is characterized by coarse gold mineralization. There is no comprehensive documentation to address this issue. 6.3 1996 – 2010 Golden Goose 6.3.1 1996 In 1996, Golden Goose obtained the Magino mine property through an amalgamation of Muscocho Explorations Ltd, Flanagan McAdams Resources Inc. and McNellen Resources Inc. In that same year, BLM Bharti Engineering Ltd conducted a property review that evaluated the potential for both underground and open-pit mining (BLM Bharti Engineering Limited, 1996). 6.3.2 1997 In early 1997, a drill core re-sampling program was carried out to determine the reliability of previous drill assay results. A stripping program with structural mapping was completed on 17 July, 1997, to determine the orientation and continuity of gold bearing veins. Drilling In 1997, ten (10) diamond drillholes totalling 2,087.5 m were drilled from 1 April to 25 April by Chibougamau Diamond Drilling Ltd of Chibougamau, Québec (Nielsen, 1997). The holes were drilled to: (1) verify the potential of the mine area for hosting large-tonnage, low-grade gold mineralization amenable to open-pit mining; (2) determine the distribution of gold mineralization; (3) twin previous holes and determine the repeatability of assay results; and (4) establish a sampling protocol.
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Prodigy Gold Incorporated: Mineral Resource Estimate Update, Magino Gold Project, Ste. Sault Marie Mining District, Ontario NI 43-101 Technical Report
All holes were drilled from north to south (N180° Az) on baseline-cut grid lines turned off a surveyed base line that was established in late 1996. The locations of the holes were determined using the Magino mine grid. All recovered core was NQ diameter. After each hole was completed, a Van Ruth plug was inserted in the bedrock below the bottom of the casing, and the top of the hole cemented. The casing was left in all holes. All drill core from this program is stored in tagged core boxes at the mine site. Several important objectives were set for the April 1997 program, with positive results. Firstly, the program confirmed the nature of the Magino mine mineralization and demonstrated that low-grade mineralization (0.5 g/t Au or higher), amenable to open-pit mining, occurs throughout the previously mined areas. Secondly, the new drillholes were used to determine sampling and assaying protocols for any future work. Sampling and analytical quality assurance and quality control In 1997, 5% of the original pulps and 5% of the coarse rejects were checked by Swastika Laboratories Ltd of Swastika, Ontario. Golden Goose did not insert any standards or blanks. Another total of 87 pulps were sent to another laboratory (ALS Chemex) for an independent check (Nielsen, 1997). Mineral processing and metallurgical testwork Samples from diamond drillholes and rock samples from the stripped areas were sent to Lakefield Research Laboratories for gravity, column leach, bottle roll and Bond Work Index testing to develop metallurgical mill process flow sheets (Perkins, 1999a). BLM Bharti Engineering Ltd (BLME) conducted a metallurgical research program as part of their 1997 Preliminary Feasibility Study on the Magino gold property. The main results and conclusions provided below were extracted from the report (BLM Bharti Engineering Limited, 1997): Based on excellent standard leaching results, a carbon-in-leach (CIL) process was chosen for the Magino ore. Drill core and surface bulk samples were tested at Lakefield Research Laboratories. The drill core samples were higher grade material representing the main ore types to be processed. Gold recoveries for future operations were determined using a blended mill feed of drill core and surface sample ore. Bottle roll tests show that the material has an excellent dissolution rate of 97.8% in cyanide solution at a grind of 84% at minus 200 mesh. The cyanide and lime additions were found to be low relative to the majority of gold leaching applications. An overall dissolution of 96.4% can be expected, even when including a 25% blend of surface ore at 92% extraction. Consequently, an overall gold recovery of 95% should be attainable. Column leaching tests indicated that heap leaching is not economical. Recoveries were very low even after 35 to 42 days of leaching. Gravity separation did not lead to high grades in the concentrate, the highest test result being 1.64%. A higher grade is generally desired to minimize direct smelting costs.
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Prodigy Gold Incorporated: Mineral Resource Estimate Update, Magino Gold Project, Ste. Sault Marie Mining District, Ontario NI 43-101 Technical Report
Geochemistry and geophysical surveys A baseline study was completed to evaluate the usefulness of geochemical sampling in future surface exploration. Quantec Consulting Inc. carried out an induced polarization- resistivity survey over the Webb Lake granodiorite on a local cut-and-picketed survey grid (non-UTM reference). The line separation was 400 feet and the station interval 100 feet. In all, 15.4 miles (24.8 km) were surveyed. The gradient and dipole-dipole IP-resistivity results for the Magino property identified potential chargeability and resistivity signatures relating to subsurface geology, including possible lithological discriminations, concordant and discordant fault-fracture structures, geochemical alteration, and weak concentrations of disseminated mineralization potentially associated with auriferous quartz- and carbonate-altered faults, fractures or shear zones. Sample and assay database A digital database that included imported archived diamond drillhole information was compiled for the property, and digital solids were created for the purposes of computer based modelling. The underground workings, including both long-hole and shrinkage stopes, were modelled using Gemcom software. A block model was created for resource evaluation purposes. Economic analysis A scoping study was performed to determine the economic viability of the project using the block model data and estimated costs for commissioning and operating an open-pit mine with a mill throughput of 7,500 tons per day (Pearson, Hofman and Associates Ltd., 1997). The scoping study indicated that at a gold price of US$350 per ounce and a cut-off grade of 0.025 oz/t Au, the property had combined proven and probable reserves of 20.5 million short tons at an overall average grade of 0.050 oz/t Au (18.6 Mt @ 1.7 g/t Au)4. Discounted cash flow indicators from that study showed a pre-tax internal rate of return of 11.3% and a net present value of C$32M at a 5% discount rate. The decline in the gold price to the US$265-275 level in the late 1990s obviously nullified these economic analyses. 6.3.3 1998-1999 Mineral processing and metallurgical testwork In August 1998, two bulk samples representing two rock types; mafic volcanics and granodiorite, were amassed from the 1997 diamond drill core and sent to Kappes Cassiday and Associates for further metallurgical column leach testing. The average head grade was 0.88 g/t Au for the mafic volcanics and 0.96 g/t Au for the granodiorite (Kappes Cassiday and Associates, 1999). Column testing indicated an expected field recovery of 45% Au for the mafic volcanics and 51% for the granodiorite ore when crushed to minus 9.5 mm. Gold recovery increased from 80 to 84% with crushing to minus 1.70 mm.
4 Resources and/or reserves reported are historical. These historical “resources” and/or “reserves” should not be relied upon because it is unlikely they conform to current Regulation 43-101 criteria or to CIM Definition Standards, and they have not been verified to determine their relevance or reliability. They are included in this section for illustrative purposes only and should not be disclosed out of context.
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Prodigy Gold Incorporated: Mineral Resource Estimate Update, Magino Gold Project, Ste. Sault Marie Mining District, Ontario NI 43-101 Technical Report
6.3.4 2000 Additional sampling In May of 2000, F. W. Nielsen of Golden Goose asked Reddick Consulting Inc. to carry out a program that would assist their re-evaluation of the Magino mine property. There were two separate components to the work. The first was a review of the digital diamond drillhole database to determine where un-sampled and/or missing core occurred in the central part of deposit. This was followed by retrieving the archived core for those intervals and having them assayed to determine background gold levels for un-sampled lengths of core. Drilling The second component involved the drilling of nineteen (19) large diameter diamond drillholes (HQ diameter) in the central part of the deposit to: a) assist with grade determination in areas subject to underground mining; b) provide new baseline data to aid with grade reconciliation; and c) determine if there was variability in assay data as a function of sample size. Dominik Drilling of Timmins, Ontario, was awarded the drill contract in 2000. Drilling ran from 30 September to 18 October (Reddick, 2001a). A total of 1,231 m was drilled, producing 1,196 m of recovered core. The core was logged and sampled on the site. Drill collars were located by clearing out and re-chaining the parts of the grid lines that had been turned off the surveyed baseline established by Golden Goose in 1996. All drill cores from this program core is stored in tagged core boxes at the mine site. The 2000 drill program was designed to test the central part of the property to help reconcile grade estimates in the main mine area where stoping has removed some of the mineralization. There were two main considerations in designing the 2000 drill program. Firstly, in order to provide an even spatial distribution of samples, the holes were laid out in the most regular pattern possible. Secondly, only large diameter holes (HQ) were drilled and only one quarter of the core was archived to obtain the most representative samples possible. Sampling and analytical quality assurance – quality control (QA/QC) In 2000, Golden Goose randomly inserted diabase samples in the shipped samples as blanks. In addition, Swastika Laboratories reported on their internal blanks, which they use for their own QA/QC purposes. To determine the variation introduced by sub-sampling, every 25th sample had a check assay done on the original pulp and a second pulp was split from the coarse reject fraction for a third assay. Swastika also performed many additional random checks. Golden Goose did not insert any standards. None of the samples assayed by Swastika Laboratory were sent for independent verification at another laboratory (Reddick, 2001b). A total of 1,231 m was drilled. The results of the 2000 drilling program, as well as the re-sampling program, helped to establish a mean grade of 0.015 oz/t Au for un-sampled core from the central 1,000 feet (305 m) of the deposit. It also provided information on the existence of a significant percentage of granodiorite in the main part of the deposit at a grade considered sufficient for a low-grade, large-tonnage mining operation (0.06-0.10 oz/t).
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6.3.5 2001 In 2001, Reddick Consulting Inc. re-evaluated the variography and interpolation techniques to produce a revised resource estimate based on the inclusion of data obtained in 2000. Taking into account past production, the total measured resource5 when applying a cut-off grade of 0.05 oz/t was estimated at approximately 5.8 Mt at a grade of 0.09 oz/t Au. These resources were estimated for an open-pit operation. 6.3.6 2002 Drilling In 2002, Golden Goose conducted a seventeen (17)-hole diamond drilling program (2,743 m) under the supervision of Reddick Consulting Inc. The holes were mostly drilled west of the mine area and did not identify significant mineralization. Dominik Drilling of Timmins, Ontario, was awarded the drill contract in 2002. Drilling ran from 12 May to 12 June, 2002 (Reddick, 2002). A total of 2,743 m was drilled with 2,508 m of core recovered. Drill collars were located on the grid established by Golden Goose in 1996–1997. The core was logged and sampled on the site. All drill cores from this program are stored in tagged core boxes at the mine site. The 2002 drill program tested targets along the gold trend in the mine area; these targets were in the vicinity of anomalous results obtained during earlier drilling of the Lovell Lake and North Plug granodiorite intrusions, and the previously undrilled Southern granodiorite. The best mineralization from the 2002 drilling program was in diamond drillholes near the mine area. Sampling and analytical quality assurance – quality control In 2002, Golden Goose inserted seventeen (17) diabase samples in the shipped samples as blanks. As in 2000, Swastika Laboratories reported their internal blanks. Check assays were performed on random pulps, as were checks of a second pulp split from the coarse reject fraction. None of the assayed samples were sent for independent verification at another laboratory (Reddick, 2002). 6.3.7 2004 Resource estimate An NI43-101 Technical Report by Snowden Mining Industry Consultants and Reddick Consulting Inc. in 2004 reviewed the 2001 block model resource estimate to determine its suitability for use in scoping studies involving pit optimization (Burns and Reddick, 2004). Reddick Consulting Inc. concluded that for a potential open pit mine based on a cut-off grade of 0.04 oz/t, the 2004 combined Measured and Indicated Mineral Resource at the Magino mine was 7.295 Mt grading 0.075 oz/t Au after subtracting historical production.
5 Resources and/or reserves reported are historical. These historical “resources” and/or “reserves” should not be relied upon because it is unlikely they conform to current Regulation 43-101 criteria or to CIM Definition Standards, and they have not been verified to determine their relevance or reliability. They are included in this section for illustrative purposes only and should not be disclosed out of context.
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6.3.8 2006 Drilling In 2006, eighteen (18) NQ diamond drillholes were completed for a total of 8,055 m. The holes identified a very robust system of gold mineralization with numerous intersections greater than 100 g/t Au, and clearly demonstrated the down-dip continuity of the mineralization, which remained open at depth and along strike. The deepest intersection of the diamond drill program was 440 m below surface (Hole 06-12), and mineralization was still open. The 2006 drill contract was awarded to Bradley Brothers Drilling of Rouyn-Noranda, Québec. Drilling ran from 9 February to 11 April, producing eleven (11) NQ diamond drillholes totalling 4,802 m. Another four (4) holes totalling 1,866 m were drilled from 9 June to 1 July. Three (3) other holes totalling 1,387 m were drilled from 23 November to 12 December. The core was logged and sampled at the mine site. All drill core from this program is stored in tagged core boxes at the mine site. The 2006 drilling program was designed to target mineralization below historical workings from a depth of 130 to 400 m below surface and within the range of a future extended decline access. Sampling and analytical quality assurance – quality control In 2006, the Golden Goose QA/QC program consisted of 189 un-mineralized mafic volcanic samples inserted as blanks to check for cross-contamination. In addition, 177 core duplicates were assayed at ALS Chemex in Thunder Bay to monitor sample variability. Golden Goose did not insert any standards. A selection of 115 master pulps were sent to a secondary laboratory (Swastika) for check assays (Waldie, 2006). For the assay range from 0 to 100 g/t Au, the correlation coefficient was 0.983. From 1997 to 2006, Golden Goose did not detect any significant variation between subsamples. Analytical laboratory In 2006 core samples were sent to the ALS Chemex laboratory at Thunder Bay, Ontario. The sample preparation process was as follows: Sample login Received sample weighing Crush with 90% passing 2 mm Crushing – quality control test Split sample with riffle splitter Pulverise 1000 g to 85% passing 75 micron Pulverising – quality control test Gold analysis conformed to Code Au-AA24 with a 50 g charge for fire assay followed by AA finish. “Ore” grade results were re-assayed according to Code Au-AA26.
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6.3.9 2007 Drilling Golden Goose drilled fourteen (14) NQ diamond drillholes on the Magino property for a total of 9,239 m. The drilling program was originally designed to outline and extend multiple known gold zones from 150 to 400 m below surface, below the historical Magino mine workings. Bradley Brothers Drilling of Rouyn-Noranda, Québec was awarded the drill contract in 2007. Drilling ran from 6 January to 17 December. Fourteen (14) NQ diamond drillholes were completed totalling 9,836 m. The core was logged and sampled at the mine site. All drill core from this program is stored in tagged core boxes at the mine site. The fourteen (14) diamond drillholes identified a gold system with numerous intersections and clearly demonstrated the continuity of the mineralization, which remains open at depth and along strike. Sampling and Analytical Quality Assurance – Quality Control In 2007, samples were assayed at Accurassay Laboratories in Thunder Bay, Ontario. Golden Goose did not establish a QA/QC protocol for samples from the 2007 drilling program, nor did the company double-check the results using a second laboratory. Independent consultants InnovExplo asked Golden Goose to send assayed samples for independent verification at ALS Chemex in Thunder Bay, Ontario. In all, 363 pulps from the 2007 program were sent, and InnovExplo’s analysis of the results from this second laboratory revealed no bias in the original data obtained from Accurassay. 6.3.10 2008 Resource estimate In 2008, InnovExplo completed a Mineral Resource Estimate for the Magino gold mine below the old mine workings (i.e., below the 650 level) that was published as a Technical Report in compliance with NI 43-101 and Form 43-101F1 (Turcotte and Pelletier, 2008). Specifically, InnovExplo’s mandate was to prepare a Resource Estimate from a depth of 200 to 600 m. The resulting resources could only be classified as Inferred as per CIM standards and guidelines for reporting mineral resources and reserves. The total estimated Inferred Resources were 3,755,600 tonnes grading 5.94 g/t Au for a total of 717,227 ounces of gold (cut-off at 3 g/t Au). The highlight of this Resource Estimate was the addition of a large portion of Inferred Resources below the old workings of the Magino mine (i.e., below the 650 level). This upgrade was possible due to the results from the 2006-2007 diamond drilling program, the most recent drill program at that time. This additional information increased the number of mineralized zones. Exploration potential InnovExplo also performed an exhaustive compilation of the entire Magino property to identify new regional exploration targets for diamond drilling and stripping. It was concluded that there is potential for gold mineralization in granodiorite, gabbro/diorite and volcanic rocks throughout the Magino property. InnovExplo constructed a geological compilation map showing all historical exploration work on the Magino property. The compilation work encompassed all previous geological mapping, trenching, diamond drilling, surface sampling, geophysical surveying, geochemical surveying, etc., and all historical mineral occurrences
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Surface sampling In July 2008, Golden Goose carried out stripping and channel sampling in the vicinity of the southern contact of the Webb Lake granodiorite stock and adjacent volcanic rocks (Golden Goose news release dated 28 October, 2008). The stripped area lays over the old mine workings and consists of seven (7) small strippings totalling 2,790 square m. The purpose of the work was to enhance the understanding of structural controls on gold deposition. A total of seventy-eight (78) channel samples were collected from the stripped areas. The best results for the stripping and channel sampling program were: 19.85 g/t Au over 0.5 metre, and 17.59 g/t Au over 1.0 metre. 6.3.11 2009 Geochemistry and geophysical surveys In 2009, Gestion Aline Leclerc Inc. of Val-d’Or, Québec, performed a geochemical field survey from 18 to 21 September, 2009. A total of 661 humus samples were collected and assayed for gold and 48 other elements. Two grids were established with lines spaced 100 m apart. Grid locations were established with a hand-held GPS. One (1) sample was collected every 25 m. That same Autumn, D/C Géophysique of Val d’Or, Québec, carried out a ground magnetic survey from 26 September to 10 October, 2009. A total of 75 km was surveyed on a grid of 42 lines spaced 50 m apart. Resource estimate InnovExplo reported that the Magino mine has Measured and Indicated Resources of 2,091,900 metric tonnes grading 6.74 g/t Au for a total of 453,189 ounces. Total Inferred Resources were reported as 5,828,800 metric tonnes grading 6.29 g/t Au for a total of 1,178,124 ounces at a cut-off grade of 3.0 g/t Au, as published in a Technical Report in compliance with NI 43-101 and Form 43-101F1 (Turcotte and Pelletier, 2009). 6.3.12 2010 Drilling From 15 November, 2009 to 1 March, 2010, Golden Goose conducted a fourteen (14)- hole diamond drilling program totalling 4,012 m. Most of the holes were drilled in volcanic rocks south of the mine area and succeeded in identifying some significant gold mineralization. Bradley Brothers Drilling of Rouyn-Noranda, Québec was awarded the drill contract in 2009-2010. Drilling ran from 15 November, 2009 to 30 March, 2010. Fourteen (14) NQ diamond drillholes were completed totalling 4,012 m. The core was logged and sampled at the mine site. All drill core from this program is stored in tagged core boxes at the mine site. The overall objective of the 2009-2010 drilling program was to discover new mineralized zones in volcanic rocks on the Magino property, south of the mine area. The fourteen (14) diamond drillholes identified some gold intersections and clearly demonstrated the possibility of increasing the gold resources in the volcanic rocks south of the mine area, which remain open at depth and along strike.
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Sampling and Analytical Quality Assurance – Quality Control A QA/QC control program was active during the Golden Goose 2009-2010 diamond drilling program on the Magino property. The objectives of the QA/QC program were to monitor and document the quality and integrity of the sampling procedure, sample preparation, and assaying. Using a series of quality control samples, Golden Goose’s protocol stipulates that the entire sampling, sample preparation and assaying process be monitored and evaluated for: The integrity of field sampling and sample shipment by monitoring field blank results and sample shipment procedures; Possible contamination during sample preparation or the assaying process by monitoring the results of field blank standards submitted as regular samples, and by monitoring laboratory analytical blank standard results; The suitability of crushing/splitting/pulverization sizes by measuring the precision of coarse and pulp duplicate samples; and The level of assaying accuracy by using external and internal (laboratory) certified reference standards and by assaying blind certified reference standards in each batch of samples. The laboratory inserted one (1) coarse crush duplicate sample split, selected at random, into each 10-sample sub-batch. Three (3) certified reference standards (CRMs) with different grades, all from Rocklabs in New Zealand, were used for QA/QC. One (1) field blank standard was prepared using “barren” rock from the project site, or other potentially “barren” material. One (1) of the three CRMs, or one (1) blank, was included in each batch of fifty (50) samples shipped by the Golden Goose geologist. 6.3.13 Summary The exploration and mining history of Magino is summarized in Table 6.1.
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Table 6.1 Historical summary
Year Company Work description Results References McCarthy-Webb Goudreau Development of claim group 1917 to 1924 Discovery of gold Bourne et al., 1983 Mines Ltd Sinking of two shallow shafts or pits 335 m of surface diamond drilling McCarthy-Webb Goudreau 1925 to 1932 Test pits and trenching Bourne et al., 1983 Mines Ltd 5 surface diamond drillholes (DDH) Consolidated Mining and Diamond drilling 421 tons of ore milled 1933 to 1934 Bourne et al., 1983 Smelting Company Construction of mill 144 oz of gold extracted Inclined shaft sunk at 33 degrees Sublevel at 100 ft (30.5 m); 1st level at 176 ft (53.6 m); 47,785 tons of ore milled 1935 to 1937 Algoma Summit Gold Mines Bourne et al., 1983 2nd level at 374 ft (114 m) 2,274 oz of gold extracted Underground diamond drilling Inclined shaft sunk to 2nd level at 374 ft (114 m) 68,421 tons of ore milled 1938 to 1939 Algoma Summit Gold Mines Underground diamond drilling 6,049 oz of gold extracted Bourne et al., 1983 Drifting Detailed underground exploration program Discovery of a new gold zone 1939 to 1942 Magino Gold Mines Bourne et al., 1983 Mine closed 309 oz of gold from clean-up of mill 1972 Mr. C. McNellen Surface diamond drilling: 6 DDH (AS-72-01 to AS-72- Many new “ore-grade” intersections Bourne et al., 1983 06) totalling 2,000 ft (610 m) 1981 Rico Copper (1966) Ltd Surface diamond drilling: 16 DDH (S-81-1 to S-81-16) Many new “ore-grade” intersections Bourne et al., 1983 totalling 6,915 ft (2,107 m) Surfaces facilities installed Underground workings dewatered and resurveyed Channel sampling McNellen Resources Inc. Test hole drilling 1981 to 1982 Cavendish Investing Ltd 75 test holes totalling 1,500 ft (457 m) Many new “ore-grade” intersections Bourne et al., 1983 Surface diamond drilling: 38 DDH (SS-1 to SS-37A) totalling 6,798 ft (2,072 m) Underground drilling: 42 DDH (U1-1 to U1-11; U2-1 to U2-31) totalling 8,581 ft (2,615 m) Mongeau, 1982 No electromagnetic conductors 1982 McNellen Resources Inc. Magnetic and electromagnetic surveys Parbery and Magnetic anomalies Cavendish Resources Ltd Geological survey Mongeau, 1982
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Year Company Work description Results References
1983 McNellen Resources Inc. Pre-feasibility study Project not viable Bourne et al., 1983 Cavendish Resources Ltd Mineral inventory estimation
McNellen Resources Inc. Pre-feasibility study Bourne, 1984 1984 Cavendish Resources Ltd Mineral inventory estimation New gold-bearing zones found Surface diamond drilling: 25 DDH (JJ-1 to JJ-24) Sutherland, 1987 Prophet Resources Ltd June totalling 5,122 ft (1,561 m) Resources Inc. Surface diamond drilling McNellen Resources Inc. 1985 29 DDH (MAG-85-01 to MAG-85-29) totalling 16,441 ft Four (4) mineralized zones outlined Sutherland, 1987 Muscocho Explorations Ltd (5,011 m) Surface diamond drilling: 64 DDH (S-86-01to S-86-55; Best drift results: 0.298 oz/t over 8.0 ft Muscocho S-86-57 to S-86-65) totalling 12,372 ft (3,771 m) horizontal width along strike length of Explorations Ltd, 1986 McNellen Resources Inc. Underground diamond drilling: 12 DDH (U-86-01 to U- 120 ft (35.50 m) 1987 Muscocho Explorations Ltd 86-12) totalling 5,508 ft (1,679 m) DDH S-86-014 intersected 0.624 oz/t Sutherland, 1987 Ramp collared over 13.0 ft (21.38 g/t Au over 3.96 m) DDH Logs Underground development Surface diamond drilling: 92 DDH (S-87-001 to S-87- 079; S-87-201 to S-87-211) totalling 54,359 ft (16,369 m) McNellen Resources Inc. DDH S-87-045 intersected 0.708 oz/t 1987 Underground diamond drilling: 187 DDH (U- 87-001 to DDH logs Muscocho Explorations Ltd over 14.2 ft (24.29 g/t Au over 4.33 m) U-87-118; U-87-120 to U-87-186) totalling 51,330 ft (15,645 m) Underground development Surface diamond drilling 9 DDH (S-88-001 to S-88-009) totalling 54,359 ft (16,369 m) McNellen Resources Inc. DDH S-88-001 intersected 0.371 oz/t 1988 Underground diamond drilling: 213 DDH (U-88-001 to DDH logs Muscocho Explorations Ltd U-88-064; U-88-072 to U-88-151; U-88-155 to U-88- over 31.0 ft (12.73 g/t Au over 9.45 m) 166; U-88-171 to U-88-207; U-88-219 to U-88-232; U- 88-240 to U-88-245) totalling 57,434 ft (17,506 m) Underground development and mining work
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Year Company Work description Results References
Underground diamond drilling: 293 DDH (U-89-001 to DDH U-89-043 intersected 0.257 oz/t U-89-090; U-89-092 to U-89-116; U-89-118 to U-89- over 6.0 ft (8.81 g/t Au over 1.83 m) 142; U-89-147 to U-89-64; U-89-168 to U-89-169; U- DDH U-89-061 intersected 0.244 oz/t McNellen Resources Inc. 89-171; U-89-173 to U-89-176; U-89-179 to U-89-188; over 9.4 ft (8.37 g/t Au over 2.87 m) 1989 DDH logs Muscocho Explorations Ltd U-89-190 to U-89-192; U-89-194 to U-89-196; U-89- DDH U-89-159 intersected 2.283 oz/t 198 to U-89-200; U-89-204 to U-89-237; U-89-238 to over 3.4 ft (78.27 g/t Au over 1.02 m) U-89-248; U-89-251 to U-89-315) totalling 53,493 ft DDH U-89-163 intersected 0.30 oz/t (16,305 m) over 24.8 ft (10.29 g/t Au over 7.56 m) Underground development and mining work Underground diamond drilling: 166 DDH (U-90-001 to McNellen Resources Inc. U-90-015; U-90-017 to U-90-019; U-90-021 to U-90- DDH U-90-080 intersected 0.21 oz/t 1990 DDH logs Muscocho Explorations Ltd 023; U-90-025 to U-90-092; U-90-101 to U-90-127; U- over 10.3 ft (7.21 g/t Au over 3.14 m) 90-129 to U-90-178) totalling 15,178 ft (4,626 m) Underground development and mining work McNellen Resources Inc. Underground diamond drilling: 13 DDH (U-91-001 to DDH U-91-008 intersected 0.243 oz/t 1991 DDH logs Muscocho Explorations Ltd U-91-013) totalling 1,081 ft (329 m) over 9.70 ft (8.32 g/t Au over 2.96 m) Underground development and mining work McNellen Resources Inc. No underground and surface diamond drilling Muschocho 1992 Muscocho Explorations Ltd Underground development and mining work Explorations, 1992 The 650 ramp was driven to a depth of 685 ft 768,678t processed production of 105,543 oz of gold 28 shrinkage stopes totalling 177,486 t with a grade of 0.217 oz/t (38,572 oz) McBride, 1991 McNellen Resources Inc. 1988 to 1992 Mining production 34 long-hole stopes totalling 371,285 t Nielsen, 1995 Muscocho Explorations Ltd with a grade of 0.118 oz/t (43,938 oz) Perkins, 1999 3 combined long-hole and shrinkage stopes totalling 53,766 t with a grade of 0.177 oz/t (9,534 oz)
McNellen Resources Inc. 1995 Technical review of the Magino mine property Nielsen, 1995 Muscocho Explorations Ltd Acquisition of Magino mine BLME 1996 1996 Golden Goose Resources Inc. Evaluation of potential for both underground and open- Reddick 1996a pit mining Reddick 1996b
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Year Company Work description Results References Nielsen, 1997 Check sampling program Perkins, 1997 Geochemical study for surface exploration PHA, 1997 IP survey of Webb Lake granodiorite Hall et al., 1997 Surface diamond drilling Wilson, 1997 DDH S-97-05 intersected 18.57 g/t Au 1997 10 DDH (S-97-01 to S-97-10) totalling 2,087 m BLME, 1997 Golden Goose Resources Inc. over 7.00 m Stripping, mapping and channel sampling Analytical Solutions Structural study Ltd, 1997 Creation of a digital database in Gemcom software Reddick, 1999 Creation of a block model for resource evaluation Perkins, 1999 Scoping study Reddick, 2000 Reddick, 1999 1998 Golden Goose Resources Inc. Two bulk samples Perkins, 1999 Measured Resources: 5.8 Mt grading Surface diamond drilling 0.09 oz/t Au Reddick, 2001a 2000 to 2001 Golden Goose Resources Inc. 19 DDH (00-01 to 00-18) totalling 1,231 m DDH 00-02 intersected 9.54 g/t Au Reddick, 2001b Revised resource estimate over 3.65 m Surface diamond drilling DDH 02-02 intersected 12.89 g/t Au 2002 Golden Goose Resources Inc. Reddick, 2002 17 DDH (00-02 to 02-17) totalling 2,743 m over 0.67 m Measured and Indicated Resources: Burns and Reddick, 2004 Golden Goose Resources Inc. Review of mineral resources 7.295 Mt grading 0.075 oz/t Au 2004
Surface diamond drilling DDH 06-14 intersected 7.29 g/t Au 2006 Golden Goose Resources Inc. 18 DDH (06-01 to 06-15; 2006-16 to 2006-17) totalling over 5.4 m Waldie, 2006 8,055 m Surface diamond drilling DDH 2007-30 intersected 7.94 g/t Au 2007 Golden Goose Resources Inc. DDH logs 14 DDH (2007-17 to 2007-30) totalling 9,239 m over 2.9 m Inferred Resources: 3,775 Mt grading Turcotte and 5.94 g/t (717,227 oz) below the old Pelletier, 2008 Technical Report and Mineral Resource Estimate Press release from 2008 Golden Goose Resources Inc. Stripping and channel sampling workings Golden Goose Compilation of the entire Magino property Best channel sampling results: 19.85 g/t over 0.5 m and 17.59 g/t over 1.0 m Resources: October 28, 2008 Leclerc and Fleury, Geochemical field survey (humus) Some gold anomalies (humus) 2009 News release 2009 to 2010 Ground magnetic survey (75 km) Some magnetic anomalies from Golden Goose Golden Goose Resources Inc. 14 DDH (2009-01 to 2009-08; 2010-01 to 2010-06) Some significant gold mineralization Resources: March totalling 4,012 m 30, 2010
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7 Geological setting and mineralization Information in this section has been excerpted from Turcotte, B., and Pelletier, C., (May 2009) and updated. 7.1 The Archean Superior Province The Archean Superior Craton forms the core of the North American continent and is surrounded and truncated on all sides by Proterozoic orogens, the collisional zones along which elements of the Precambrian Canadian Shield were amalgamated (Hoffman, 1988 and 1989). The Superior Province represents two million square km of this craton that is free of significant post-Archean cover rocks and deformation (Card and Poulsen, 1998). Tectonic stability has prevailed since ca. 2.6 Ga in large parts of the Superior Province (Percival, 2007). The rocks of this Province are mainly Mesoarchean and Neoarchean in age and have been significantly affected by post-Archean deformation only along the boundaries marked by Proterozoic orogens, such as the Trans-Hudson and Grenville orogens, or along major internal fault zones, such as the Kapuskasing Structural Zone. The rest of the Superior Province has remained stable since the end of the Archean (Goodwin et al., 1972). Proterozoic and younger activity is limited to rifting along the margins, emplacement of numerous mafic dyke swarms (Buchan and Ernst, 2004), compressional reactivation, and large scale rotation at ca. 1.9 Ga, and failed rifting at ca 1.1 Ga. With the exception of the northwest and northeast Superior margins that were pervasively deformed and metamorphosed at 1.9 to 1.8 Ga, the craton has escaped ductile deformation. A first-order feature of the Superior Province is its linear sub-provinces of distinctive lithological and structural character, accentuated by sub-parallel boundary faults (e.g. Card and Ciesielski, 1986). Trends in the Superior Province are generally easterly in the south, westerly to north-westerly in the northwest, and north-westerly in the northeast (Figure 7.1). The southern Superior Province (to latitude 52°N) is a major source of mineral wealth. Owing to its potential for base metals, gold and other commodities, the Superior Province continues to attract mineral exploration in both established and frontier regions. 7.2 The Wawa Sub-province The Magino property is located in the Wawa Sub-province (Figure 7.2). Most workers accept a correlation between the Wawa and Abitibi terranes across the transverse Kapuskasing uplift (Percival, 2007). Volcanism appears to have begun with the 2.89 to 2.88 Ga Hawk assemblages. The 2.745 Ga Wawa assemblage and the 2.72 Ga Greenwater and Manitouwadge assemblages reflect oceanic settings. Volcanogenic massive sulphide deposits in the Wawa terrane have similar ages of 2.72 Ga (Corfu and Stott, 1986; Williams et al., 1991; Sage et al, 1996a and b). Polat and Kerrich (1999) reported a variety of oceanic magma types from the Schreiber belt and interpreted the belt as a tectonic mélange (Polat et al., 1998; Polat and Kerrich, 1999 and 2001). Relatively late-stage volcanism at ca. 2.695 Ga (Carfish assemblage) took place during D1 thrusting. Subsequent calc-alkalic to alkali magmatism (ca. 2.689 Ga; Corfu and Stott, 1996) and associated coarse clastic sedimentation (< 2.689 Ga) was followed by the emplacement of sanukitoid plutons (2.685-2.68 Ga) and dextral transpressive D2 deformation.
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Figure 7.1 Tectonic subdivisions of the Superior Province within northern Ontario
(from Stott et al., 2007)
Figure 7.2 Major geological elements of the eastern Wawa Sub-province
(from Card and Poulsen, 1998)
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Mineralization occurs in two main regions: the Michipicoten-Mishubishu belt in the Wawa area, and the Shebandowan-Schreiber belt to the west (Percival, 2007). The Michipicoten-Mishubishu belt contains mainly iron and gold deposits with some nickel and copper-vein deposits (Figure 7.3). Iron deposits are in oxide-, sulphide- and carbonate-facies iron formations that lie stratigraphically above the 2.74 to 2.735 Ga Wawa assemblage. Gold deposits in this region occur within veins associated with shear zones in plutonic rocks of variable composition and age. The Shebandowan-Schreiber belt hosts important deposits of gold, iron and base metals (volcanic-hosted massive sulphide deposits; e.g., Manitouwadge) (Peterson and Zaleski, 1999; Zaleski et al., 1999), as well as intrusion-hosted nickel deposits. The most significant is the Hemlo gold camp, a large disseminated deposit (Muir, 2003) in a strongly deformed, ca 2.693 to 2.685 Ga volcano-sedimentary sequence (Davis and Lin, 2003). Gold was deposited during D2 sinistral wrench deformation between 2.680 and 2.677 Ga, likely from fluids derived from granitoid rocks.
Figure 7.3 Mineral belts in the Michipicoten-Shebandowan region of the Wawa Sub-province
(from Card and Poulsen, 1998) 7.3 The Michipicoten greenstone belt The Magino mine is located within the Michipicoten greenstone belt (Figure 7.2 and Figure 7.3). This belt, including the adjacent Gamitagama and Mishubishu greenstone belts, is one of the key localities with respect to the Superior Province (Wawa Sub-province) geology, partly because of the importance of its Algoma-type iron formations, partly because many important concepts of greenstone belt geology are based there, and partly because it contains a record of volcanism, sedimentation and plutonism that spans at least 240 Ma of Archean time (Card and Poulsen, 1998).
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The Michipicoten greenstone belt is a structurally and stratigraphically complex assemblage of volcanic, sedimentary and intrusive rocks that were metamorphosed to greenschist and amphibolite facies (Attoh, 1981; Williams et al., 1991). To the east and south, the Michipicoten greenstone belt and satellite Gamitagama greenstone belt are bounded by plutonic rocks of the Wawa gneiss domain, mainly tonalite gneiss with abundant granitic intrusions (Card and Poulsen, 1998). The north-eastern Wawa Sub-province consists of similar gneissic and plutonic rocks along with the small Saganash Lake and Kabinakagami Lake greenstone belts. At the eastern edge of the Michipicoten greenstone belt, a Mesoarchean sequence (Cycle 1) of basalt and komatiite, overlain by calc-alkaline tuff, is intruded by the 2888 Ma Hawk granite and 2881 Ma felsic sills (Sage, 1994; Card and Poulsen, 1998). This sequence is in contact with 2747 Ma tonalite gneiss cut by 2698 Ma intrusions of the Whitefish Lake batholith. The Mesoarchean rocks may represent a basement to the younger volcanic succession (Jackson and Sutcliffe, 1990). The Mesoarchean and Neoarchean supracrustal rocks form at least three (3) mafic-felsic cycles with intercalated sediments, notably the thick Helen iron formation that caps the lower cycle and consists of a lower siderite member, a middle pyritic carbonate member, and upper chert-carbonate and black shale members (Goodwin, 1962; Sage, 1987; Sage, 1994). Cycle 2 is a 2749 to 2746 Ma and 2729 Ma sequence consisting of tholeiitic basalt and andesite overlain by calc-alkaline dacite and rhyolite (Sage, 1994; Card and Poulsen, 1998). The upper volcanic cycle (Cycle 3), which is separated from the lower cycles by the Doré conglomerate containing tonalite clasts as young as 2698 Ma, consists of tholeiitic basalt with minor komatiite, capped by 2701 to 2691 Ma calc-alkaline felsic volcanic and clastic sedimentary rocks that include wacke, arkose, polymictic conglomerate and oligomictic quartz conglomerate (Sage, 1994; Card and Poulsen, 1998). Detrital zircons from the sedimentary rocks are as young as 2680 Ma (Corfu and Sage, 1992), demonstrating that these sediments, like similar sequences in the Abitibi greenstone belt, were deposited following major volcanism. The petrography of the wacke units indicates that they were derived from bimodal mafic-felsic volcanic sequences (Ayres, 1983). Several suites of plutonic rocks ranging in composition from gabbro to monzogranite and syenite occur in and around the Michipicoten greenstone belt. Early tonalite, trondhjemite and granodiorite plutons with ages of 2747 to 2737 Ma, 2729 to 2721 Ma and 2698 to 2693 Ma, respectively—similar to the ages of the main volcanic cycles—are probably syn-volcanic and have characteristics consistent with derivation from melting of basaltic sources (Card and Poulsen, 1998). The rocks of the Michipicoten and Gamitagama greenstone belts have been repeatedly deformed and metamorphosed under low-pressure, greenschist to lower amphibolite facies conditions (Ayres, 1969, 1983; Studemeister, 1983; McGill and Shrady, 1986; Arias and Helmstaedt, 1990; McGill, 1992; Sage, 1993 and 1994). Early structures include major recumbent folds, thrusts and associated cleavages (Card and Poulsen, 1998). Later superimposed upright folds are accompanied by steep cleavages. The latest structures include northeast-trending shear zones that host auriferous vein systems (Heather, 1989) and northerly-trending sinistral faults.
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The Michipicoten-Mishubishu mineral belt is dominated by iron and gold deposits (Figure 7.3); lesser prospects include nickel sulphide and copper-vein deposits. Iron formation deposits are widely distributed in this region. Gold deposits also typify the Michipicoten-Mishubishu mineral belt. Most of these occur in a linear zone extending west-southwest from Renabie in the east, through the Goudreau-Lochalsh area, to Mishubishu Lake. Although the gold deposits of this area occur in a terrane with extensive iron formations, they display a remarkable association with altered shear zones and plutonic rocks regardless of composition or age (Studemeister, 1985; Studemeister and Kilias, 1987; Arias and Heather, 1987; Heather and Arias, 1987 and 1992). 7.4 The geology of the Magino mine area The Magino mine is situated in the Goudreau-Lochalsh gold district of the Wawa gold camp. The geology of the Goudreau-Lochalsh gold district has been mapped by Sage and published over a ten-year period (Sage 1983, 1984, 1985, 1987a, 1993, 1993a, 1993b, 1993c and 1993d). Supracrustal rocks in the Goudreau-Lochalsh district consist of Cycle 2 felsic to intermediate pyroclastic metavolcanics capped by pyrite-bearing ironstone. To the north are pillowed, massive and schistose, mafic to intermediate metavolcanics and minor intercalations of Cycle 3 mafic pyroclastic rock. Several medium- to coarse-grained quartz dioritic to dioritic sills and/or dikes intrude all metavolcanic rocks. Gold mineralization at the Magino mine is dominantly hosted by the Webb Lake stock (Deevy, 1994), which intrudes isoclinally folded Cycle 3 mafic volcanic rocks (Sage, 1993). The Webb Lake stock is a felsic intrusion interpreted by Sage (1993, 1994) as a trondhjemite, but continues to be called a granodiorite in mine terminology and by mine geologists. The long axis of the Webb Lake stock is parallel to the regional supracrustal rock stratigraphy (Sage, 1993; 1994). The Webb Lake stock is ENE-striking and has a steep northerly dip (Deevy, 1992 and 1994). Its surface expression is at least 1,800 m long and up to 300 m wide. The aureole rocks of the Webb Lake stock are predominately mafic volcanic rocks (Deevy, 1992 and 1994). The southern contact is quite linear and regular, consisting mostly of dark green mafic rocks. The northern contact is quite irregular and there is interfingering of granodiorite (trondhjemite) and aureole rocks. The granodiorite (trondhjemite) is medium- to coarse-grained, green-grey, moderately hard, non-magnetic and massive (Sutherland, 1987). It is locally foliated and hydrothermally altered, and has been affected by greenschist facies metamorphism. The granodiorite (trondhjemite) contains 5% to 10% veins of carbonate, quartz, tourmaline and pyrite in various orientations. Approximately 5% of the igneous rock contains healed faults and fractures, generally filled with chlorite and carbonate. They may correspond to the late, north-trending, 45°-dipping, carbonate-filled faults observed underground (Sutherland, 1987). Some lithologies occur within the granodiorite. In mine terminology, these are “felsites”, “mafics” and “intermediates” (Deevy, 1992 and 1994). “Grey felsite” is the oldest of the three and possibly predates gold mineralization. It is predominately a medium to dark grey aphanitic body about 0.30 to 1.20 m thick that can be traced from one end of the mine to the other. Grey felsite may not in fact be an intrusive in its own right, but rather cataclastized granodiorite (trondhjemite) (Deevy, 1992). “Pink felsite” and “brown felsite” postdate gold mineralization. They are both fine-grained rocks of quartz-feldspar porphyry composition. They vary from a few centimetres to 3.5 m wide and can be traced for a hundred metres or more both laterally and vertically.
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The “mafics” may be either dykes or xenoliths. They are dark green in colour, generally strongly foliated, and are of similar composition to the aureole mafic rocks (Deevy, 1992 and 1994). These mafic rafts or dykes are up to 6 m wide (Bourne et al., 1987). The “intermediates” are much more limited in extent and have the texture of a crystal tuff. They are probably true xenoliths within the granodiorite. Both the mafic and intermediate xenoliths/dykes predate gold mineralization (Deevy, 1992 and 1994).
Figure 7.4 Geology of the Magino mine area
(adapted and modified from Sage 1990, 1993b, 1993c and 1993d) Several diabase dykes up to 12 m wide, of probable Keweenawan age, strike north-north-west and cut all rock types (Bourne et al., 1987). Diamond drilling east of the diabase dyke marking the eastern limit of underground workings in the “old mine” indicates that the granodiorite(trondhjemite)-metavolcanic contact has been offset by approximately 50 feet (15 m), and that the dip of the contact at this location is vertical instead of 65° to the north as is found west of the dyke. Bourne et al. (1987) believe the diabase dyke intruded a pre-existing fault zone along which movement was mainly rotational in nature (sinistral displacement), which would explain both the apparent horizontal offset and the marked change in dip. The horizontal distance between mineralized zones across this structure exceeds that shown for the displacement of the stock’s margins on mine plans (Nielsen, 1997). This suggests that if displacement entirely post-dates mineralization, it must have been oblique, or alternatively, the zones on either side of the diabase are not related (Nielsen, 1997). The granodiorite (trondhjemite) intrusion is cut by numerous shear zones related to the Goudreau Lake Deformation Zone and it is on these shear-hosted gold-bearing quartz veins that the Magino mine occurs (Sage, 1994). The portion of the intrusion north of the deformation zone hosts the gold mineralization and is more deformed than the southern portion. The Goudreau Lake Deformation Zone is a major contact between Cycle 2 to the south and Cycle 3 to the north. In the Magino mine area, the Goudreau Lake Deformation Zone consists of a 070°-striking, ductile-brittle zone sub-parallel to dextral oblique-slip high-strain zones developed within strongly altered and deformed, felsic to intermediate metavolcanic rocks (Heather and Arias, 1992).
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7.5 Gold mineralization Gold mineralization at the Magino gold mine occurs within the Webb Lake granodiorite (trondhjemite) stock. The Webb Lake stock underwent variable metasomatic alteration during deformation and gold mineralization (Heather and Arias, 1992). Distinct haloes of quartz-sericite-pyrite with minor Fe-carbonate and hematite alteration are observed adjacent to the quartz vein systems. Alteration of the Webb Lake stock outside the gold- bearing zones is manifested by a chlorite-albite-quartz-tourmaline-calcite assemblage (Heather and Arias, 1992). Locally present within the stock are lenticular chlorite-schist zones that represent either strongly foliated mafic metavolcanic xenoliths or a chlorite- altered felsic intrusion (Heather and Arias, 1992). Gold mineralization occurs in several sub-parallel high-strain zones striking 070°–080° within the Webb Lake stock and within mafic metavolcanic rocks immediately along the northern margin of the stock (Heather and Arias, 1992). Deevy (1992 and 1994) distinguished and described two types of ore shoots, namely “zones” and “veins”. The “zones” are usually 2 to 4.5 m wide and have a strike length of 25 to 70 m. They consist of foliated, bleached and silica-flooded granodiorite (trondhjemite). The zones are folded in places, which produces mineable widths of up to 10.5 m. The “zones” dip at about the same angle as the foliation and have a vertical plunge. The vertical continuity of the “zones” is at a vertical to horizontal ratio of 2.5:1 (Deevy, 1994). Weak bleaching and silica flooding are the distinguishing features of the “zones” (Deevy, 1994). Silica flooding consists of incipient pale gray quartz replacing the foliated granodiorite. Gold content is directly related to the amount of silica flooding (Deevy, 1994). The “veins” consist of discrete pale grey to pale green to almost white quartz veins varying in width from a few to 45 centimetres. They have a strike length of several to 35 m. Gold values are distributed erratically within the veins, but overall grades are quite high. The veins are folded in places, with gold concentrated in the fold noses (Deevy, 1992 and 1994). Vertical continuity of the “veins” is similar to that of the “zones”, and the plunge is also vertical. Native gold occurs in zones of pervasive silicification and in narrow (i.e., <1 to 20 cm wide) quartz veins that form complex systems 1 to 3 m wide. Gold occurs within both quartz veins and foliated and altered wall rocks, but the better gold grades are in the veins (1987 pers. comm. with T. Deevy, Magino mine geologist, as cited in Heather and Arias, 1992). Finely disseminated leaf-like visible gold was observed in numerous quartz veins in diamond drill cores and in drift backs on the second level (Koskitalo, 1983). The gold tends to form plates or leaves along fractures in quartz rather than coarse nuggets. The quartz hosting the gold tends to be fine-grained and dull milky grey (Koskitalo, 1983). Up to 10% disseminated pyrite is also present, most commonly found in alteration haloes around the gold-bearing quartz veins (Heather and Arias, 1992).
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Figure 7.5 Historical G Zone in the 24+75E drift
The granodiorite (trondhjemite) is sericitized, carbonatized, silicified and chloritized. Gold-bearing quartz veins have diffuse boundaries. Photographed area is 50 centimetres across (from Sutherland, 1987)
Figure 7.6 Gold-bearing veins on the face of the 23+80E drift
Note the vein spacing and sericite alteration selvage along the vein contact. Centre vein is 15 centimetres wide (from Sutherland, 1987)
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7.6 Structures associated with gold mineralization There is a strong structural control on the gold-bearing quartz vein system within the Webb Lake stock. The system consists of several main 070°- to 075°-striking high-strain zones, which in turn consist of subsidiary, parallel 070°- to 075°-striking mineralized zones (Heather and Aria, 1992). The zones are also parallel to the regional schistosity in this area, which strikes 070°. Individual quartz veins are localized within narrow, secondary, brittle-ductile shear fractures with the following documented attitudes and apparent horizontal displacements (Heather and Arias, 1992): a) 080°-090° / 65°N, ductile, dextral (oblique-slip) b) 045°-055° / 70°N, ductile, (?) A strongly developed foliation defined by elongated feldspar and aligned sericite has been observed wrapping asymptotically into the narrow shear fractures (Heather and Arias, 1992). These shear-fractures appear to splay off each other, with the 085° set being dominant. Surface outcrops show no obvious crosscutting relationships between these two sets of shear-fractures, suggesting synchronous development (Heather and Arias, 1992). Underground, however, it was reported by Magino’s mine geologist T. Deevy that the 055° set is part of a conjugate set of post-ore faults (1991 pers. comm. cited in Heather and Arias, 1992). Locally, the veins are better developed within the 085°-striking fracture set than in the 055° set. Some of the auriferous high-strain zones comprise two or more obliquely-oriented auriferous vein structures (e.g., the 070°-striking high-strain zone containing 085°- and 050°-striking veins) (Heather and Arias, 1992). Underground at the Magino mine, mine geologist T. Deevy noted that raise-mining on a single quartz vein structure revealed that the vein rolls from a dip of 80° to 60° and back to 80° over a vertical distance of roughly 15 m. He also noted that the best gold grades are found at the intersections between vein-bearing shear fractures with different orientations (1987 pers. comm. cited in Heather and Arias, 1992). The plunge of the Magino mineralization is sub-vertical and parallel to measured elongation lineations defined by stretched feldspar crystals (Heather and Arias, 1992). The brittle-ductile shear fractures and associated veins are consistently offset by a few centimetres along brittle fractures with the following attitudes and apparent horizontal displacements (Heather and Arias, 1992): a) 190° (010°) / 85°W, brittle, sinistral b) 310° (130°) 67°N, brittle, dextral North-striking late tourmaline-quartz veins cut both the Webb Lake stock and aforementioned gold-bearing quartz vein systems (Heather and Arias, 1992). Zones of intense tourmaline-quartz fracture-filling, flooding and brecciation are locally present within the Webb Lake stock. This late tourmaline-quartz mineralization uses the pre-existing fracture network in the rock. The tourmaline-quartz fracture-fillings and veins can contain anomalous gold values, especially where they cut an earlier gold-bearing quartz vein.
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7.7 Current view on mineralization controls and identification of ore zones The mineralization of the Magino Mine is associated with varying amounts of alteration to the Webb Lake Stock. This variation is marked by five progressive levels of alteration/deformation described below. In general; alteration levels are marked by increasing amount of foliation, sericite alteration, silicification (veining, flooding, pervasive silicification) and pyrite mineralization. Carbonatization is also apparent, but it is poorly understood if variation from calcite to ankerite is associated with higher gold grades. In areas such as the Northeast zone it is also suggested that the focus, or central and most highly altered portion of the ‘zone’ is associated with dolomite alteration, however this needs more study. Generally four (4) levels of alteration to Webb Lake Stock Granodiorite are recognized, as follows: Granodiorite: Relatively unaltered, coarse grained, equigranular quartz – plagioclase – chlorite +/- carbonate with typically > 10 % chlorite, network texture, no planar fabric is observed. Weakly Altered Granodiorite: Weakly developed planar fabric (foliation) caused by the alignment of sericite/chlorite grains, unit is finer grained than “Network Granodiorite” however relict texture can still be interpreted. Quartz +/- carbonate +/- tourmaline veining varies from 1 – 2 %, pyrite mineralization is elevated in places but generally < 0.5 %. Moderately Altered Granodiorite: Well developed planar fabric (foliation) caused by alignment of sericite/chlorite grains which make up > 20% of the rock. This planar sericite/chlorite alignment is referred to as “Sericite Lace”. Dependent on amount of chlorite this rock has a light green to light grey – grey colour. The Unit is finer grained than weakly altered granodiorite, with rounded quartz crystals. Quartz +/- carbonate +/- tourmaline veining varies from 2 – 5%, pyrite mineralization is elevated in places but generally 0.5 – 1% Strongly Altered Granodiorite: Well developed planar fabric (foliation) caused by alignment of sericite/chlorite/quartz grains which make up > 80% of the rock, the remaining constituent being quartz +/- carbonate +/- tourmaline veining. Visible gold is most commonly observed in this alteration, and the presence of visible gold is believed to be dependent on amount of smokey grey quartz veining/flooding (i.e. silica in the system at that locality). Gold bearing grey (altered) quartz veins are typically sub-parallel to foliation, mm-cm in scale with some 5-10 grey quartz flooded zones. The rock has a green and more often a light tan – pink coloration, remnant intrusive texture is completely destroyed. Remnant quartz phenocrysts are often augen shape and appear isolated in the sericite matrix. Visible gold is nearly always observed within silica (most typically small veinlets of smokey grey quartz). Gold emplacement within the moderate to strong altered zones is somewhat erratic due to the anastomosing nature of silica (quartz vein/flooding emplacement). As veins are typically <5 cm in thickness and pinch and swell in nature or are anastamosing, it is not realistic to model continuity amongst the individual veins. The more broadly altered zones which contain the erratic quartz units are more continuous in nature and can be modeled more readily. The logging of the current Prodigy drill program is focussed on describing; foliation, sericite alteration, silica (quartz veining), pyrite mineralization and VG (Visible Gold) mineralization.
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It is understood that historic logging and some mapping of the Magino deposit was focused on identifying several ‘types’ (or compositional phases) of granodiorite. It is because of this interpretation, that Prodigy’s geologists believe the past geological interpretation was forced into a model where the central portion of the stock was considered a more mafic ‘phase’ and then there were ring shaped outer phases, with a more felsic (and more calcic trondjhemite) phase along the contacts. Prodigy’s interpretation consists of sigmoidal cross-cutting zones which are folded (drag) in places and offset. To some extent, the historic phases were described similarly to the varying amounts of alteration/deformation that are now observed, however the phases were described primarily utilizing compositional differences, ignoring most alteration/deformation variations, and so the historic geologic logging data is not as useful for modelling, beyond the use for general lithology (i.e. Granodiorite or Metavolcanic).
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8 Deposit types Information in this section has been excerpted from Turcotte, B., and Pelletier, C., (May 2009). Lode gold deposits (gold from bedrock sources: Figure 8.1) occur dominantly in terranes with an abundance of volcanic and clastic sedimentary rocks of low to medium metamorphic grade (Poulsen, 1996). The Magino mine is an orogenic gold occurrence related to longitudinal shear zones (greenstone-hosted quartz-carbonate vein deposit). Greenstone-hosted quartz-carbonate vein deposits are a subtype of lode-gold deposits (Poulsen et al., 2000). They correspond to structurally controlled, complex epigenetic deposits hosted in deformed metamorphosed terranes (Dubé and Gosselin, 2007).
Figure 8.1 Inferred crustal levels of gold deposition showing the different types of lode gold deposits and the inferred deposit clan
(from Dubé et al., 2001; Poulsen et al., 2000) Greenstone-hosted quartz-carbonate vein deposits consist of simple to complex networks of gold-bearing, laminated quartz-carbonate fault-fill veins in moderately to steeply dipping, compressional brittle-ductile shear zones and faults with locally associated shallow-dipping extensional veins and hydrothermal breccias. They are hosted by greenschist to locally amphibolite-facies metamorphic rocks of dominantly mafic composition and formed at intermediate depth in the crust (5-10 km). They are distributed along major compressional to transtensional crustal-scale fault zones in deformed greenstone terranes of all ages, but are more abundant and significant, in terms of total gold content, in Archean terranes. Greenstone hosted quartz-carbonate veins are thought to represent a major component of the greenstone deposit clan (Figure 8.1) (Dubé and Gosselin, 2007). They can coexist regionally with iron formation-hosted vein and disseminated deposits, as well as with turbidite-hosted quartz-carbonate vein deposits (Figure 8.2).
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Figure 8.2 Schematic diagram illustrating the setting of greenstone-hosted quartz-carbonate vein deposits
(from Poulsen et al., 2000) The main gangue minerals are quartz and carbonate, with variable amounts of white micas, chlorite, scheelite and tourmaline. The sulphide minerals typically constitute less than 10% of the ore. The main ore minerals are native gold with pyrite, pyrrhotite and chalcopyrite without significant vertical zoning (Dubé and Gosselin, 2007). The Magino gold deposit lies within the Goudreau Lake Deformation Zone, a major contact between Cycle 2 felsic to intermediate pyroclastic metavolcanic rocks to the south and Cycle 3 massive pillowed mafic metavolcanic rocks to the north (Heather and Arias, 1992). The Goudreau Lake Deformation Zone appears to be spatially related to a large, regionally mappable intrusive sheet. This rigid meta-intrusive body deformed in a brittle manner relative to the enclosing mafic metavolcanic rocks, thus acting as a competency contrast and thereby focusing the strain and associated mineralization (Heather and Arias, 1992). In the Magino gold deposit area, the Goudreau Lake Deformation Zone (Figure 8.3) is characterized as a 1- to 2-kilometre wide, 070°-striking zone of sub-parallel ductile and brittle-ductile high-strain zones (Heather and Arias, 1992). Gold mineralization occurs in these high-strain zones. At the regional scale, there is no readily discernible alteration pattern directly related to gold mineralization. However, rocks within the Goudreau Lake Deformation Zone are slightly more altered relative to the rest of the supracrustal rocks in the Michipicoten Greenstone Belt. This suggests that hydrothermal fluids were preferentially focused into regional deformation zones (Heather and Arias, 1992). Regionally, two types of gold mineralization have been recognized in the Magino gold mine area (Heather and Arias, 1992): (a) quartz veins hosted by brittle and brittle-ductile high strain zones; (b) brittle fault-hosted breccia-style mineralization.
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Figure 8.3 Location of the Goudreau Lake deformation zone
(adapted and modified from Heather and Arias, 1992)
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9 Exploration In August 2010, Kodiak announced an agreement with Golden Goose to evaluate the Magino gold property. Since that announcement, Kodiak has conducted a review of the geological and exploration data, and recompiled the drillhole and assay database in metric format. In addition, Kodiak has undertaken sampling of previously un-sampled intervals of drill core from the 2006 program, and submitted these for assaying at independent analytical laboratories. The intervals of core that had been previously sampled by Golden Goose were visually mineralised and/or altered and interpreted as vein structures that might be amenable to underground mining. The intervening altered intervals were regarded as disseminated mineralization; were not the focus of Golden Goose’s recent program; and remained un-sampled. In response to higher prevailing gold prices in 2010, Kodiak considered that Magino’s disseminated mineralization could be evaluated as an open pittable mining scenario. In addition to the further sampling undertaken on existing drill core, Prodigy has conducted surface diamond core drilling throughout 2011 and this program is described in Section 10 Drilling. Details of pre-Prodigy exploration other than drilling undertaken at the Magino property are presented in Section 6 History. Gould Gold property The Gould Gold property covers an extensive sequence of gabbroic intrusive and metavolcanic rocks along a prospective structural trend that is parallel to the Magino gold deposit. There is no information from this property contained in the database that was provided to Snowden.
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10 Drilling Prodigy commenced an in-fill drilling program at Magino in January 2011. Assays from the drilling undertaken by Prodigy from January 2011 until approximately mid-September 2011 are included in the mineral resource estimate reported in this technical report. Assays from drilling undertaken by Prodigy after mid-September 2011 are not included in the updated resource report. Details of pre-Prodigy drilling are provided in Section 6 History. 10.1 Prodigy drilling 10.1.1 Type and extent In late 2010 Prodigy designed a 20,000 m diamond core drilling program on the wholly- owned Magino Mine property. The drilling program, designed to in-fill and expand the existing resource, started on 4 January 2011. In May 2011 Prodigy announced a doubling of the drill program to approximately 45,000 metres. The program is carried out by various rigs from two contractors: Northstar Drilling and Discovery Drilling. To mid-September, Northstar Drilling completed 42 of the drillholes and Discovery Drilling completed 85 drillholes. Information used in the resource estimate update includes 29,755.84 m of drilling from 127 Prodigy drillholes. Core diameters are: HQ in five (5) holes; NQ in eighty-one (81) holes; and NQ2 in forty-one (41) holes. The drill rigs are conventional wireline machines operated by experienced drilling companies. Due to the proximity of underground workings several holes were commenced as HQ diameter and were reduced to NQ diameter on intersecting the workings. Details of the Prodigy drillholes are provided in Table 10.1.
Table 10.1 Prodigy drilling details
Item Total Minimum Maximum Average Number of drillholes 127 50 m length 710 m length 234 m length Collar easting - 688171 mE 689375 mE - Collar northing - 53508541 mN 535081643 mN - Collar elevation - 388 mRL 406 mRL - 10.1.2 Procedures followed Drillholes are located and set-up so that, as much as possible, the drillholes are perpendicular to the strike and dip of the mineralized zones at Magino. Drillhole collar locations are surveyed to 1 cm accuracy using DGPS instruments, and drillhole paths are typically surveyed at 3 m intervals using a multishot instrument. Eighteen drillhole paths were surveyed at intervals of 20 m to 50 m using a single shot instrument, and 3 drillhole paths remained unsurveyed. Drill core at Magino is boxed, covered, and sealed at the drill rig and moved to the Prodigy logging and sample preparation facilities by Prodigy personnel. The core is then split down the centre using a typical table fed circular rock saw normally at one metre intervals.
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Core from this drilling is currently stored next to the company’s core shed facilities north of the town of Dubreuilville, Ontario. 10.1.3 Relevant results Results from Prodigy’s core drilling program were reported in five news releases during 2011 (18 May, 20 June, 4 August, 30 August and 27 September). Table 10.2 provides a summary of mineralization intercepts from Prodigy’s drilling program. The records are composited intervals where the cut-off grade is 0.35 g/t Au over a minimum length of 5 m. Composited intervals can include up to 5 m of assays below 0.35 g/t Au. The estimated true thickness reflects 76 % of the downhole drill length.
Table 10.2 Prodigy drillhole mineralization intersect results
From Length Estimated true Drillhole To (m) Au g/t (m) (m) thickness (m) MA11-001 68.0 73.6 5.6 4.3 0.31 MA11-001 82.8 115.0 32.2 24.5 0.35 MA11-001 127.9 197.7 69.8 53.0 0.88 MA11-001 204.0 212.0 8.0 6.1 0.45 MA11-001 218.0 229.0 11.0 8.4 0.43 MA11-001 250.0 260.0 10.0 7.6 0.55 MA11-001 267.0 272.0 5.0 3.8 0.52 MA11-001 282.0 294.4 12.4 9.4 1.05 MA11-001 301.0 318.3 17.3 13.1 0.35 MA11-001 338.2 359.0 20.8 15.8 1.15 MA11-001 365.0 401.0 36.0 27.4 1.11 MA11-001 470.0 479.0 9.0 6.8 2.26 MA11-001 485.0 490.0 5.0 3.8 0.64 MA11-002 0.0 0.0 0.0 0.0 0.00 MA11-003 128.0 145.0 17.0 12.9 1.68 MA11-003 163.0 175.0 12.0 9.1 0.81 MA11-003 182.0 223.0 41.0 31.2 1.52 MA11-003 230.0 240.0 10.0 7.6 0.30 MA11-003 312.0 321.0 9.0 6.8 0.60 MA11-004 125.0 228.0 103.0 78.3 2.09 MA11-004 237.0 248.0 11.0 8.4 0.50 MA11-004 255.0 272.4 17.4 13.2 1.10 MA11-004 306.6 317.0 10.4 7.9 27.14 MA11-004 334.0 340.0 6.0 4.6 1.70 MA11-004 511.0 526.0 15.0 11.4 0.32 MA11-004 545.0 558.0 13.0 9.9 0.48 MA11-004 572.0 594.0 22.0 16.7 0.39
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From Length Estimated true Drillhole To (m) Au g/t (m) (m) thickness (m) MA11-004 610.0 623.0 13.0 9.9 2.99 MA11-004 635.0 655.0 20.0 15.2 0.45 MA11-004 681.0 703.0 22.0 16.7 2.00 MA11-005 113.0 122.0 9.0 6.8 0.20 MA11-005 156.0 161.0 5.0 3.8 1.20 MA11-005 171.0 176.0 5.0 3.8 0.69 MA11-005 201.0 207.4 6.4 4.8 1.32 MA11-005 226.0 241.0 15.0 11.4 0.40 MA11-005 252.0 259.0 7.0 5.3 1.48 MA11-005 265.0 274.0 9.0 6.8 0.61 MA11-005 321.0 331.0 10.0 7.6 6.92 MA11-005 362.0 409.0 47.0 35.7 1.49 MA11-006 131.0 244.7 113.7 86.4 1.69 MA11-006 259.0 266.0 7.0 5.3 0.46 MA11-006 295.0 301.0 6.0 4.6 1.87 MA11-006 404.0 426.0 22.0 16.7 0.35 MA11-006 446.0 459.0 13.0 9.9 0.38 MA11-006 594.0 603.0 9.0 6.8 0.90 MA11-006 614.0 634.0 20.0 15.2 0.63 MA11-006 640.0 652.0 11.0 8.4 0.76 MA11-007 79.0 86.0 7.0 5.3 1.00 MA11-007 121.0 145.0 24.0 18.2 0.50 MA11-007 153.0 158.0 5.0 3.8 0.43 MA11-007 168.0 173.0 5.0 3.8 7.94 MA11-007 208.0 238.0 30.0 22.8 0.57 MA11-007 255.0 260.0 5.0 3.8 0.43 MA11-007 285.0 290.0 5.0 3.8 2.37 MA11-007 320.8 328.0 7.2 5.5 0.21 MA11-007 366.0 372.0 6.0 4.6 5.23 MA11-008 48.0 62.0 14.0 10.6 0.58 MA11-008 71.0 90.0 19.0 14.4 1.16 MA11-008 106.0 131.0 25.0 19.0 0.81 MA11-008 164.0 169.0 5.0 3.8 0.35 MA11-008 219.0 232.0 13.0 9.9 0.72 MA11-008 244.5 252.0 7.5 5.7 0.34 MA11-008 306.0 334.0 28.0 21.3 2.05 MA11-008 363.0 369.0 6.0 4.6 0.47
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From Length Estimated true Drillhole To (m) Au g/t (m) (m) thickness (m) MA11-008 385.0 412.0 27.0 20.5 0.45 MA11-008 422.0 429.0 7.0 5.3 0.19 MA11-008 439.0 451.0 12.0 9.1 1.55 MA11-008 458.0 470.0 12.0 9.1 0.44 MA11-008 477.0 508.0 31.0 23.6 0.78 MA11-008 538.0 560.9 22.9 17.4 2.35 MA11-008 575.0 591.0 16.0 12.2 1.06 MA11-008 600.7 612.0 11.4 8.6 0.82 MA11-008 629.0 635.0 6.0 4.6 0.21 MA11-008 643.0 654.0 11.0 8.4 1.03 MA11-009 30.4 36.0 5.6 4.3 0.97 MA11-009 104.0 122.0 18.0 13.7 0.41 MA11-009 138.0 181.0 43.0 32.7 0.74 MA11-009 187.0 198.0 11.0 8.4 2.22 MA11-009 239.0 312.0 73.0 55.5 1.30 MA11-009 319.0 326.0 7.0 5.3 2.11 MA11-009 333.0 338.0 5.0 3.8 0.82 MA11-009 348.0 370.0 22.0 16.7 0.50 MA11-009 401.0 420.0 19.0 14.4 2.31 MA11-009 465.0 477.0 12.0 9.1 0.20 MA11-009 505.0 513.0 8.0 6.1 1.09 MA11-010 45.0 55.0 10.0 7.6 0.26 MA11-010 78.0 93.0 15.0 11.4 0.17 MA11-010 118.0 127.0 9.0 6.8 0.84 MA11-010 163.0 173.0 10.0 7.6 0.58 MA11-010 184.0 211.0 27.0 20.5 1.78 MA11-010 225.0 235.0 10.0 7.6 0.34 MA11-010 270.0 280.0 10.0 7.6 0.33 MA11-011 9.0 18.0 9.0 6.8 0.33 MA11-011 37.0 45.0 8.0 6.1 0.33 MA11-012 20.0 26.0 6.0 4.6 0.45 MA11-012 49.0 65.0 16.0 12.2 2.88 MA11-012 86.0 99.0 13.0 9.9 0.60 MA11-012 105.9 125.0 19.1 14.5 1.43 MA11-012 133.0 143.3 10.3 7.8 3.02 MA11-012 164.0 194.0 30.0 22.8 0.79 MA11-013 50.0 55.0 5.0 3.8 5.57
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From Length Estimated true Drillhole To (m) Au g/t (m) (m) thickness (m) MA11-013 61.0 80.0 19.0 14.4 0.35 MA11-013 92.0 100.0 8.0 6.1 1.59 MA11-014 31.0 39.0 8.0 6.1 1.11 MA11-014 56.0 82.0 26.0 19.8 1.88 MA11-014 89.0 98.0 9.0 6.8 0.41 MA11-014 106.0 123.0 17.0 12.9 0.43 MA11-014 136.0 143.0 7.0 5.3 5.87 MA11-015 20.0 61.0 41.0 31.2 0.60 MA11-016 11.0 16.0 5.0 3.8 0.39 MA11-016 50.0 66.0 16.0 12.2 0.73 MA11-016 80.0 86.0 6.0 4.6 0.38 MA11-016 101.0 109.0 8.0 6.1 0.74 MA11-016 129.0 154.0 25.0 19.0 0.49 MA11-016 162.0 170.0 8.0 6.1 0.47 MA11-016 182.0 191.0 9.0 6.8 2.86 MA11-017 9.0 19.0 10.0 7.6 2.25 MA11-017 29.0 36.0 7.0 5.3 2.59 MA11-017 42.0 65.0 23.0 17.5 0.71 MA11-017 79.0 86.0 7.0 5.3 0.62 MA11-018 36.0 45.0 9.0 6.8 0.41 MA11-018 54.0 61.0 7.0 5.3 0.75 MA11-018 76.0 98.0 22.0 16.7 0.63 MA11-018 107.0 117.0 10.0 7.6 0.38 MA11-018 179.0 198.0 19.0 14.4 0.95 MA11-018 204.0 218.0 14.0 10.6 0.33 MA11-018 236.0 248.0 12.0 9.1 0.52 MA11-018 374.0 386.0 12.0 9.1 2.36 MA11-019 29.0 45.0 16.0 12.2 0.52 MA11-019 88.0 104.0 16.0 12.2 1.16 MA11-020 189.0 201.0 12.0 9.1 0.57 MA11-020 230.0 259.0 29.0 22.0 0.51 MA11-020 266.0 279.0 13.0 9.9 2.04 MA11-020 299.0 308.0 9.0 6.8 0.60 MA11-021 6.2 26.0 19.8 15.0 4.44 MA11-022 26.0 69.0 43.0 32.7 0.81 MA11-022 76.0 87.0 11.0 8.4 0.68 MA11-023 249.0 255.0 6.0 4.6 1.59
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From Length Estimated true Drillhole To (m) Au g/t (m) (m) thickness (m) MA11-023 282.0 294.0 12.0 9.1 0.99 MA11-023 387.0 402.0 15.0 11.4 0.56 MA11-023 416.0 431.0 15.0 11.4 0.49 MA11-024 20.0 37.0 17.0 12.9 0.61 MA11-024 49.0 54.0 5.0 3.8 3.70 MA11-024 75.0 104.0 29.0 22.0 0.96 MA11-024 118.0 124.0 6.0 4.6 1.06 MA11-025 15.0 24.0 9.0 6.8 1.94 MA11-025 40.0 48.0 8.0 6.1 0.27 MA11-025 66.0 83.0 17.0 12.9 0.42 MA11-025 104.0 111.0 7.0 5.3 2.42 MA11-025 121.0 135.0 14.0 10.6 1.38 MA11-025 186.0 193.0 7.0 5.3 0.25 MA11-026 12.0 20.0 8.0 6.1 1.30 MA11-026 26.0 59.0 32.0 24.3 1.05 MA11-026 77.0 89.0 12.0 9.1 1.10 MA11-027 20.0 32.0 12.0 9.1 0.34 MA11-027 64.0 85.0 21.0 16.0 0.49 MA11-027 98.0 104.0 6.0 4.6 2.80 MA11-027 114.0 132.0 18.0 13.7 0.82 MA11-027 144.0 160.0 16.0 12.2 0.57 MA11-028 77.0 97.0 20.0 15.2 0.62 MA11-028 115.7 127.0 11.4 8.6 0.50 MA11-028 136.0 150.0 14.0 10.6 0.54 MA11-028 156.0 164.0 8.0 6.1 0.22 MA11-028 170.0 196.0 26.0 19.8 0.87 MA11-028 213.0 225.5 12.5 9.5 0.42 MA11-029 0.0 0.0 0.0 0.0 0.00 MA11-030 16.0 21.0 5.0 3.8 2.33 MA11-030 32.2 38.0 5.8 4.4 0.82 MA11-030 46.0 53.0 7.0 5.3 0.42 MA11-030 169.0 176.0 7.0 5.3 4.96 MA11-030 183.0 193.0 10.0 7.6 1.55 MA11-030 200.0 208.0 8.0 6.1 0.70 MA11-031 71.0 77.0 6.0 4.6 0.35 MA11-031 90.0 100.0 10.0 7.6 0.31 MA11-032 4.6 32.0 27.4 20.8 0.88
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From Length Estimated true Drillhole To (m) Au g/t (m) (m) thickness (m) MA11-032 38.0 72.0 34.0 25.8 0.63 MA11-033 11.0 16.0 5.0 3.8 0.19 MA11-034 37.0 54.0 17.0 12.9 0.80 MA11-034 84.0 91.3 7.3 5.5 0.73 MA11-034 105.0 136.0 31.0 23.6 1.19 MA11-035 0.0 0.0 0.0 0.0 0.00 MA11-036 60.0 65.0 5.0 3.8 0.34 MA11-036 120.0 125.0 5.0 3.8 0.42 MA11-036 160.7 179.0 18.4 13.9 0.46 MA11-036 187.0 194.0 7.0 5.3 2.02 MA11-036 217.7 228.0 10.3 7.8 0.34 MA11-037 13.1 31.0 17.9 13.6 0.75 MA11-037 54.0 94.0 40.0 30.4 1.10 MA11-038 32.0 44.0 12.1 9.2 0.51 MA11-039 21.0 28.0 7.0 5.3 0.54 MA11-039 35.0 54.0 19.0 14.4 0.32 MA11-039 71.0 78.0 7.0 5.3 0.66 MA11-039 88.0 94.0 6.0 4.6 0.26 MA11-039 112.0 135.0 23.0 17.5 0.56 MA11-039 159.0 167.0 8.0 6.1 0.39 MA11-039 187.0 194.0 7.0 5.3 0.39 MA11-039 205.0 211.0 6.0 4.6 0.76 MA11-039 250.0 258.0 8.0 6.1 0.29 MA11-039 313.8 324.0 10.3 7.8 0.30 MA11-040 34.0 41.0 7.0 5.3 0.21 MA11-040 106.0 117.0 11.0 8.4 0.63 MA11-040 166.0 181.0 15.0 11.4 0.49 MA11-040 188.0 223.0 35.0 26.6 1.23 MA11-041 21.0 51.0 30.0 22.8 1.57 MA11-041 68.0 78.0 10.0 7.6 0.16 MA11-041 86.0 104.0 18.0 13.7 1.08 MA11-042 6.0 13.0 7.0 5.3 0.36 MA11-042 21.0 45.0 24.0 18.2 0.79 MA11-042 53.0 97.0 44.0 33.4 1.56 MA11-042 123.0 137.0 14.0 10.6 2.71 MA11-043 30.3 51.0 20.7 15.7 0.42 MA11-043 81.0 100.0 19.0 14.4 0.47
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From Length Estimated true Drillhole To (m) Au g/t (m) (m) thickness (m) MA11-043 118.0 128.0 10.0 7.6 0.74 MA11-043 147.0 157.0 10.0 7.6 0.62 MA11-043 166.0 171.0 5.0 3.8 0.39 MA11-043 182.0 188.0 6.0 4.6 0.37 MA11-043 197.0 219.0 22.0 16.7 0.79 MA11-043 225.0 230.0 5.0 3.8 0.99 MA11-043 236.0 255.0 19.0 14.4 0.70 MA11-044 10.0 38.0 28.0 21.3 0.60 MA11-044 44.0 54.0 10.0 7.6 0.47 MA11-045 14.0 51.0 37.0 28.1 0.42 MA11-045 61.0 66.7 5.7 4.3 4.07 MA11-045 72.0 97.0 25.0 19.0 0.47 MA11-045 108.0 113.0 5.0 3.8 0.79 MA11-045 140.0 146.0 6.0 4.6 0.24 MA11-046 18.0 24.0 6.0 4.6 0.21 MA11-046 61.0 85.0 24.0 18.2 0.62 MA11-046 91.0 130.0 39.0 29.6 0.59 MA11-046 136.0 143.0 7.0 5.3 0.37 MA11-047 20.0 35.0 15.0 11.4 0.40 MA11-048 15.0 46.0 31.0 23.6 0.49 MA11-048 55.0 72.0 17.0 12.9 0.51 MA11-049 65.0 77.0 12.0 9.1 3.85 MA11-049 84.0 91.0 7.0 5.3 1.47 MA11-049 98.0 106.0 8.0 6.1 0.35 MA11-049 129.0 159.0 30.0 22.8 0.88 MA11-050 59.0 74.0 15.0 11.4 0.39 MA11-050 140.0 187.0 47.0 35.7 0.55 MA11-050 211.5 247.0 35.5 27.0 0.43 MA11-050 270.0 292.0 22.0 16.7 0.75 MA11-050 298.0 330.0 32.0 24.3 0.70 MA11-050 340.0 349.0 9.0 6.8 1.16 MA11-050 357.0 365.0 8.0 6.1 0.83 MA11-050 376.0 383.0 7.0 5.3 0.57 MA11-051 24.0 35.0 11.0 8.4 0.39 MA11-051 75.0 80.0 5.0 3.8 0.40 MA11-051 99.0 120.0 21.0 16.0 0.39 MA11-051 141.0 148.0 7.0 5.3 0.58
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From Length Estimated true Drillhole To (m) Au g/t (m) (m) thickness (m) MA11-051 201.0 212.0 11.0 8.4 0.80 MA11-051 229.0 238.0 9.0 6.8 0.31 MA11-051 253.0 258.0 5.0 3.8 0.53 MA11-052 23.0 37.0 14.0 10.6 1.35 MA11-052 53.0 61.0 8.0 6.1 0.37 MA11-053 35.0 45.0 10.0 7.6 0.73 MA11-053 70.0 76.0 6.0 4.6 0.18 MA11-053 84.0 104.0 20.0 15.2 0.54 MA11-054 26.0 70.0 44.0 33.4 1.19 MA11-054 79.0 120.0 41.0 31.2 0.52 MA11-055 69.0 74.0 5.0 3.8 1.78 MA11-055 116.0 196.0 80.0 60.8 1.46 MA11-055 211.0 222.0 11.0 8.4 0.64 MA11-055 246.0 277.0 31.0 23.6 2.58 MA11-056 31.6 98.0 66.4 50.5 1.41 MA11-056 120.0 130.0 10.0 7.6 0.59 MA11-057 118.0 123.0 5.0 3.8 0.20 MA11-057 146.0 158.0 12.0 9.1 0.27 MA11-057 167.0 182.0 15.0 11.4 1.38 MA11-057 199.0 208.0 9.0 6.8 1.51 MA11-057 214.0 234.0 20.0 15.2 0.27 MA11-057 250.0 294.0 44.0 33.4 1.31 MA11-057 310.0 316.0 6.0 4.6 0.31 MA11-057 325.0 338.0 13.0 9.9 0.55 MA11-058 5.0 10.0 5.0 3.8 3.02 MA11-058 17.0 28.0 11.0 8.4 0.36 MA11-059 5.0 33.0 28.0 21.3 0.38 MA11-059 53.0 79.4 24.0 18.2 1.20 MA11-060 20.0 60.0 40.0 30.4 1.19 MA11-060 87.0 92.0 5.0 3.8 1.04 MA11-060 99.0 107.0 8.0 6.1 1.06 MA11-060 113.0 128.0 15.0 11.4 0.46 MA11-061 8.4 16.3 7.9 6.0 1.23 MA11-061 41.5 50.9 9.4 7.1 0.59 MA11-061 59.0 70.0 11.0 8.4 0.35 MA11-061 78.0 86.0 8.0 6.1 0.36 MA11-061 99.0 149.0 50.0 38.0 1.08
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From Length Estimated true Drillhole To (m) Au g/t (m) (m) thickness (m) MA11-061 163.0 168.0 5.0 3.8 0.43 MA11-061 184.0 192.0 8.0 6.1 2.20 MA11-061 277.0 296.0 19.0 14.4 0.49 MA11-061 340.0 346.0 6.0 4.6 3.18 MA11-061 363.0 377.0 14.0 10.6 0.54 MA11-061 383.0 388.0 5.0 3.8 0.29 MA11-061 394.0 400.0 6.0 4.6 1.87 MA11-062 22.0 32.0 10.0 7.6 0.46 MA11-062 43.0 64.0 21.0 16.0 0.62 MA11-062 73.0 85.0 12.0 9.1 0.73 MA11-063 71.1 77.0 5.9 4.5 1.58 MA11-063 118.0 142.0 24.0 18.2 1.08 MA11-063 165.0 189.0 24.0 18.2 1.15 MA11-064 9.2 27.0 17.9 13.6 0.59 MA11-064 54.0 63.0 9.0 6.8 0.97 MA11-064 109.0 128.0 19.0 14.4 0.73 MA11-064 175.0 190.0 15.0 11.4 2.96 MA11-065 45.0 77.0 32.0 24.3 0.55 MA11-065 96.0 112.0 16.0 12.2 0.36 MA11-065 141.0 169.0 28.0 21.3 0.33 MA11-066 29.0 34.0 5.0 3.8 2.63 MA11-067 0.0 0.0 0.0 0.0 0.00 MA11-068 12.5 30.0 17.5 13.3 0.28 MA11-068 93.0 98.0 5.0 3.8 2.04 MA11-069 12.0 21.0 9.0 6.8 1.36 MA11-069 47.0 59.0 12.0 9.1 0.46 MA11-069 74.0 87.9 13.9 10.6 0.74 MA11-069 94.0 99.0 5.0 3.8 3.19 MA11-070 21.0 30.0 9.0 6.8 2.15 MA11-070 43.0 54.0 11.0 8.4 1.41 MA11-070 78.0 94.0 16.0 12.2 0.56 MA11-071 24.0 67.0 43.0 32.7 0.46 MA11-072 52.0 59.0 7.0 5.3 0.71 MA11-072 97.0 102.0 5.0 3.8 0.90 MA11-072 109.0 137.0 28.0 21.3 0.76 MA11-073 113.0 120.0 7.0 5.3 0.23 MA11-073 137.5 161.0 23.5 17.9 0.63
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From Length Estimated true Drillhole To (m) Au g/t (m) (m) thickness (m) MA11-073 190.0 207.0 17.0 12.9 0.77 MA11-073 219.0 226.0 7.0 5.3 0.35 MA11-073 233.0 243.0 10.0 7.6 0.99 MA11-073 250.0 280.0 30.0 22.8 1.80 MA11-074 51.0 67.0 16.0 12.2 0.69 MA11-074 116.0 148.0 32.0 24.3 0.86 MA11-074 167.0 175.0 8.0 6.1 1.83 MA11-075 43.0 77.0 34.0 25.8 0.66 MA11-076 5.5 17.0 11.5 8.7 0.58 MA11-076 41.0 52.0 11.0 8.4 0.68 MA11-076 69.0 98.0 29.0 22.0 0.37 MA11-076 104.0 116.0 12.0 9.1 0.42 MA11-076 132.0 137.0 5.0 3.8 1.17 MA11-077 70.0 76.8 6.8 5.1 0.37 MA11-077 82.9 96.0 13.2 10.0 0.31 MA11-077 105.0 124.0 19.0 14.4 0.33 MA11-077 144.0 201.0 57.0 43.3 1.33 MA11-077 261.0 271.0 10.0 7.6 0.87 MA11-077 290.0 295.8 5.8 4.4 0.19 MA11-078 26.0 104.0 78.0 59.3 0.94 MA11-078 142.0 157.0 15.0 11.4 0.33 MA11-078 166.0 181.0 15.0 11.4 0.46 MA11-078 188.0 203.0 15.0 11.4 1.35 MA11-078 253.0 261.0 8.0 6.1 0.41 MA11-078 278.0 288.0 10.0 7.6 0.25 MA11-078 323.0 336.0 13.0 9.9 0.38 MA11-078 352.0 359.0 7.0 5.3 0.25 MA11-078 378.0 385.0 7.0 5.3 0.83 MA11-079 21.0 73.0 52.0 39.5 0.64 MA11-080 14.0 50.0 36.0 27.4 1.55 MA11-081 106.0 132.0 26.0 19.8 0.63 MA11-081 154.0 161.0 7.0 5.3 0.29 MA11-081 173.0 182.0 9.0 6.8 0.29 MA11-081 203.0 221.0 18.0 13.7 2.01 MA11-081 227.0 254.0 27.0 20.5 1.90 MA11-081 328.0 335.0 7.0 5.3 1.78 MA11-082 15.0 31.0 15.0 11.4 0.66
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From Length Estimated true Drillhole To (m) Au g/t (m) (m) thickness (m) MA11-082 50.0 58.0 7.0 5.3 0.60 MA11-082 119.0 146.0 25.0 19.0 0.30 MA11-082 166.0 174.0 8.0 6.1 6.31 MA11-082 180.0 192.0 12.0 9.1 0.55 MA11-082 225.0 236.0 8.0 6.1 1.07 MA11-082 311.0 320.0 9.0 6.8 1.12 MA11-083 166.0 234.0 68.0 51.7 1.88 MA11-083 257.0 325.0 68.0 51.7 0.69 MA11-083 436.0 453.0 17.0 12.9 1.47 MA11-084 25.0 57.0 32.0 24.3 0.52 MA11-084 65.0 79.0 14.0 10.6 1.13 MA11-084 93.0 138.0 45.0 34.2 0.78 MA11-084 175.0 183.0 8.0 6.1 0.46 MA11-084 205.0 211.0 5.0 3.8 0.27 MA11-085 31.0 46.0 15.0 11.4 0.44 MA11-086 11.0 24.0 13.0 9.9 0.65 MA11-087 22.0 28.0 6.0 4.6 0.76 MA11-087 66.0 71.0 5.0 3.8 0.25 MA11-087 77.0 87.0 10.0 7.6 0.36 MA11-088 53.0 58.0 5.0 3.8 0.44 MA11-088 83.0 106.7 23.7 18.0 0.32 MA11-088 121.0 129.0 8.0 6.1 0.26 MA11-088 146.0 151.0 5.0 3.8 8.47 MA11-088 167.3 175.0 7.7 5.9 0.83 MA11-088 192.0 200.0 8.0 6.1 3.63 MA11-088 237.0 247.0 10.0 7.6 0.45 MA11-088 271.0 281.0 10.0 7.6 0.45 MA11-089 34.0 98.0 64.0 48.6 0.66 MA11-089 121.0 126.0 5.0 3.8 0.42 MA11-089 139.0 155.0 16.0 12.2 1.20 MA11-089 168.0 173.0 5.0 3.8 0.39 MA11-089 191.3 197.0 5.7 4.3 4.11 MA11-089 226.0 246.0 20.0 15.2 0.67 MA11-089 260.0 269.0 9.0 6.8 0.30 MA11-090 37.0 50.0 13.0 9.9 1.17 MA11-090 96.0 103.0 7.0 5.3 0.41 MA11-090 111.0 125.0 14.0 10.6 0.66
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From Length Estimated true Drillhole To (m) Au g/t (m) (m) thickness (m) MA11-090 175.0 231.0 56.0 42.6 0.49 MA11-090 241.0 247.0 6.0 4.6 1.29 MA11-091 71.0 85.0 14.0 10.6 1.67 MA11-091 91.0 98.0 7.0 5.3 0.46 MA11-091 107.0 150.0 43.0 32.7 0.37 MA11-091 158.0 166.0 8.0 6.1 0.60 MA11-091 177.0 209.0 32.0 24.3 1.05 MA11-091 224.0 302.0 77.0 58.5 1.14 MA11-091 386.0 393.0 7.0 5.3 0.26 MA11-091 413.0 420.0 7.0 5.3 0.49 MA11-092 57.0 64.0 7.0 5.3 0.33 MA11-092 78.0 99.0 21.0 16.0 1.10 MA11-092 192.0 200.0 8.0 6.1 0.25 MA11-092 207.0 213.0 6.0 4.6 1.29 MA11-092 222.0 270.0 48.0 36.5 0.80 MA11-092 298.0 303.0 5.0 3.8 3.73 MA11-092 311.0 318.0 7.0 5.3 0.19 MA11-093 18.0 42.0 24.0 18.2 0.27 MA11-093 51.0 63.5 12.5 9.5 0.51 MA11-093 87.0 111.0 24.0 18.2 0.50 MA11-093 144.0 156.0 12.0 9.1 0.22 MA11-093 239.0 254.0 15.0 11.4 7.68 MA11-094 75.0 97.0 22.0 16.7 1.35 MA11-094 168.0 176.0 8.0 6.1 0.78 MA11-094 187.0 208.0 21.0 16.0 0.46 MA11-094 218.0 227.0 9.0 6.8 0.42 MA11-094 233.0 254.0 19.0 14.4 1.09 MA11-094 285.0 296.0 11.0 8.4 0.79 MA11-095 47.0 53.8 6.8 5.2 0.36 MA11-095 59.0 76.0 17.0 12.9 0.91 MA11-095 97.0 112.0 13.0 9.9 2.47 MA11-095 119.0 136.0 17.0 12.9 0.61 MA11-095A 53.0 74.0 18.0 13.7 0.48 MA11-095A 80.0 109.0 29.0 22.0 0.53 MA11-095A 120.0 142.0 22.0 16.7 0.36 MA11-095A 213.0 226.0 13.0 9.9 2.08 MA11-095A 275.0 287.0 12.0 9.1 0.82
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From Length Estimated true Drillhole To (m) Au g/t (m) (m) thickness (m) MA11-095A 296.0 304.0 8.0 6.1 0.80 MA11-095A 319.0 326.0 7.0 5.3 1.56 MA11-095A 334.0 344.0 10.0 7.6 1.06 MA11-095A 352.0 403.0 47.0 35.7 0.98 MA11-095A 421.0 441.0 20.0 15.2 0.71 MA11-096 148.0 154.0 6.0 4.6 0.33 MA11-096 186.0 194.0 8.0 6.1 0.80 MA11-096 221.0 235.0 14.0 10.6 0.54 MA11-096 251.0 271.0 20.0 15.2 1.03 MA11-096 277.0 285.0 8.0 6.1 0.36 MA11-096 294.0 301.9 7.9 6.0 0.39 MA11-097 12.0 17.0 5.0 3.8 0.20 MA11-097 80.0 105.0 23.0 17.5 1.79 MA11-098 97.0 193.0 96.0 73.0 1.06 MA11-098 200.4 223.0 22.6 17.2 1.16 MA11-099 57.0 69.0 12.0 9.1 0.55 MA11-099 85.0 142.0 57.0 43.3 0.47 MA11-099 160.0 167.0 7.0 5.3 0.32 MA11-100 5.0 17.0 12.0 9.1 0.86 MA11-100 32.0 52.0 20.0 15.2 0.68 MA11-100 60.0 69.0 9.0 6.8 0.47 MA11-100 77.0 83.0 6.0 4.6 0.32 MA11-100 101.0 111.0 10.0 7.6 2.98 MA11-101 10.0 32.0 21.0 16.0 0.89 MA11-101 101.0 133.0 32.0 24.3 0.36 MA11-101 140.0 147.0 7.0 5.3 0.43 MA11-101 153.0 158.0 5.0 3.8 0.44 MA11-102 78.0 109.0 31.0 23.6 4.68 MA11-103 22.0 34.0 12.0 9.1 0.59 MA11-103 42.0 49.0 7.0 5.3 0.60 MA11-103 56.0 63.0 7.0 5.3 1.21 MA11-103 74.0 82.0 8.0 6.1 0.38 MA11-104 56.0 61.0 5.0 3.8 0.34 MA11-104 68.0 77.0 9.0 6.8 0.45 MA11-104 83.0 111.0 27.0 20.5 0.48 MA11-104 144.0 154.0 10.0 7.6 0.84 MA11-104 174.0 189.0 15.0 11.4 2.54
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From Length Estimated true Drillhole To (m) Au g/t (m) (m) thickness (m) MA11-104 197.0 217.0 20.0 15.2 0.46 MA11-104 238.0 243.0 5.0 3.8 0.20 MA11-104 250.0 270.0 20.0 15.2 0.44 MA11-105 22.0 34.0 12.0 9.1 1.38 MA11-105 42.0 66.0 24.0 18.2 6.36 MA11-105 78.0 101.0 21.0 16.0 0.41 MA11-105 116.0 150.0 34.0 25.8 0.76 MA11-106 17.0 32.0 15.0 11.4 0.44 MA11-106 81.0 102.0 21.0 16.0 3.75 MA11-106 114.0 149.0 35.0 26.6 0.91 MA11-106 156.0 192.0 34.0 25.8 0.83 MA11-107 8.5 22.0 13.5 10.3 0.27 MA11-107 92.0 98.0 6.0 4.6 0.31 MA11-107 105.0 110.0 5.0 3.8 0.67 MA11-107 121.0 127.0 6.0 4.6 0.29 MA11-107 167.0 174.0 7.0 5.3 0.43 MA11-107 186.0 208.0 22.0 16.7 2.86 MA11-107 291.0 296.0 5.0 3.8 6.23 MA11-107 319.0 325.0 6.0 4.6 2.61 MA11-107 336.0 357.0 20.0 15.2 1.16 MA11-107 364.0 382.0 18.0 13.7 0.64 MA11-107 412.7 427.0 14.3 10.9 0.39 MA11-108 22.0 31.0 9.0 6.8 1.01 MA11-108 40.0 49.0 7.0 5.3 2.10 MA11-108 73.0 80.0 7.0 5.3 0.77 MA11-108 87.0 93.0 6.0 4.6 0.23 MA11-109 24.0 35.0 11.0 8.4 0.41 MA11-109 50.0 55.0 5.0 3.8 0.30 MA11-110 45.0 58.0 13.0 9.9 0.32 MA11-110 71.0 95.0 23.0 17.5 0.58 MA11-111 56.0 65.0 9.0 6.8 0.57 MA11-111 82.0 90.0 8.0 6.1 0.60 MA11-112 55.0 63.0 8.0 6.1 0.88 MA11-112 79.0 86.0 7.0 5.3 4.02 MA11-112 96.0 122.0 26.0 19.8 0.38 MA11-112 138.0 146.0 8.0 6.1 0.44 MA11-112 152.0 159.0 7.0 5.3 0.49
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From Length Estimated true Drillhole To (m) Au g/t (m) (m) thickness (m) MA11-112 165.0 175.0 10.0 7.6 1.35 MA11-112 193.0 201.0 8.0 6.1 1.13 MA11-112 224.0 236.0 12.0 9.1 7.08 MA11-112 246.0 265.0 19.0 14.4 0.65 MA11-112 340.0 345.0 5.0 3.8 0.69 MA11-113 10.0 16.0 6.0 4.6 0.23 MA11-113 24.0 41.0 16.2 12.3 0.88 MA11-113 55.8 73.0 17.2 13.0 0.59 MA11-114 77.0 83.0 6.0 4.6 1.15 MA11-114 103.0 121.0 18.0 13.7 1.01 MA11-114 127.0 137.0 10.0 7.6 1.72 MA11-114 173.0 180.0 7.0 5.3 0.79 MA11-114 203.0 210.0 7.0 5.3 0.86 MA11-115 4.0 30.0 26.0 19.8 0.54 MA11-115 36.0 42.0 6.0 4.6 2.48 MA11-115 51.0 59.0 8.0 6.1 0.80 MA11-115 65.0 78.0 11.0 8.4 2.44 MA11-116 42.0 62.0 20.0 15.2 0.39 MA11-116 91.0 103.0 12.0 9.1 0.30 MA11-116 112.0 122.0 10.0 7.6 0.58 MA11-117 Assays pending MA11-118 108.0 123.0 15.0 11.4 0.78 MA11-118 163.0 180.0 17.0 12.9 0.61 MA11-118 220.0 236.0 16.0 12.2 0.78 MA11-119 167.0 198.0 31.0 23.6 1.02 MA11-119 204.0 219.0 13.0 9.9 0.51 MA11-119 234.0 251.0 17.0 12.9 0.59 MA11-119 266.0 279.0 12.0 9.1 2.72 MA11-120 41.0 51.0 10.0 7.6 0.99 MA11-120 75.0 99.0 24.0 18.2 0.33 MA11-120 107.0 129.0 22.0 16.7 0.35 MA11-120 237.0 249.0 12.0 9.1 2.10 MA11-120 255.0 265.0 10.0 7.6 0.81 MA11-120 271.0 305.0 34.0 25.8 0.75 MA11-120 324.0 334.0 10.0 7.6 0.30 MA11-120 341.0 381.0 40.0 30.4 1.12 MA11-120 387.0 430.0 43.0 32.7 1.05
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From Length Estimated true Drillhole To (m) Au g/t (m) (m) thickness (m) MA11-120 452.0 469.0 17.0 12.9 0.64 MA11-120 488.0 505.0 17.0 12.9 0.45 MA11-121 Assays pending MA11-122 268.0 302.0 33.0 25.1 0.92 MA11-122 320.0 325.0 5.0 3.8 0.69 MA11-122 352.0 362.0 10.0 7.6 4.14 MA11-122 374.0 380.0 4.0 3.0 7.98 MA11-123 126.0 147.0 21.0 16.0 0.56 MA11-123 157.0 162.0 5.0 3.8 1.65 MA11-123 176.0 187.0 11.0 8.4 0.45 MA11-123 194.0 199.0 5.0 3.8 0.53 MA11-123 251.0 269.0 18.0 13.7 0.34 MA11-123 276.0 287.0 9.0 6.8 1.00 MA11-123 304.0 309.0 5.0 3.8 0.48 MA11-123 318.0 344.0 24.0 18.2 0.96 MA11-123 351.0 369.0 17.0 12.9 0.52 MA11-123 394.0 401.0 7.0 5.3 0.54 MA11-123 439.0 445.0 5.0 3.8 0.85 MA11-124 Assays pending MA11-125 184.0 279.0 95.0 72.2 1.45 MA11-125 285.0 325.0 38.0 28.9 0.86 MA11-125 342.0 360.2 18.2 13.8 17.24 MA11-125 438.0 443.0 5.0 3.8 0.29 MA11-126 8.0 14.0 6.0 4.6 2.92 MA11-126 23.0 31.0 7.0 5.3 1.01 MA11-126 37.0 87.0 49.0 37.2 1.25 MA11-127 77.0 95.0 17.0 12.9 0.30 MA11-127 105.0 125.0 20.0 15.2 0.81 MA11-127 247.0 255.0 8.0 6.1 0.69 MA11-127 272.0 278.0 6.0 4.6 0.64 MA11-127 286.6 298.0 11.4 8.7 1.65 MA11-127 317.0 322.0 5.0 3.8 2.61 MA11-127 337.0 342.0 5.0 3.8 0.69 MA11-127 350.0 360.0 8.0 6.1 1.73 MA11-128 132.0 147.0 15.0 11.4 0.38 MA11-128 212.0 273.0 61.0 46.4 0.41 MA11-128 305.0 348.0 42.0 31.9 0.66
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From Length Estimated true Drillhole To (m) Au g/t (m) (m) thickness (m) MA11-128 379.0 392.0 13.0 9.9 0.57 MA11-129 Assays pending MA11-130 Assays pending MA11-131 108.0 115.0 7.0 5.3 0.99 MA11-131 121.0 127.0 6.0 4.6 0.62 MA11-131 163.0 184.0 21.0 16.0 0.47 MA11-131 198.0 239.0 39.0 29.6 1.10 MA11-131 257.0 272.0 15.0 11.4 0.96 MA11-131 284.0 300.0 16.0 12.2 0.55 MA11-131 310.0 316.0 6.0 4.6 0.34 MA11-131 322.0 361.0 39.0 29.6 1.06 MA11-131 396.0 410.0 14.0 10.6 0.32 MA11-131 417.0 434.0 17.0 12.9 0.32 MA11-131 462.0 467.0 4.0 3.0 1.60 10.1.4 Factors that could materially impact the accuracy and reliability of the results In the author’s opinion there are no recovery factors that would materially affect sampling. The rock mass is typically tight and recovery information indicates better than 98% core recovery in the granodiorite stock. Core recoveries can be affected in proximity to underground workings. 10.1.5 Drill plan Figure 10.1 provides the location of Prodigy drillholes as at mid-September 2011. The outline of the proposed pit shown in this figure is now superseded.
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Figure 10.1 Plan view of Prodigy drillhole locations
10.1.6 Examples of drill sections Figure 10.2 to Figure 10.4 illustrate representative examples of drill sections through the Magino mineral deposit. Depictions of a PEA Pit Outline in these figures are now superseded.
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Figure 10.2 Drill cross section 300SW
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Figure 10.3 Drill cross section 1375SW
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Figure 10.4 Drill cross section 1180SW
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11 Sample preparation, analyses and security 11.1 Sampling method and approach Sampling at Magino has been carried out through drill core sampling and underground channel sampling. The current database contains no verified channel sample data and therefore this sample type has not been used in the current study. The reader is referred to Section 6 History for details of pre-Prodigy sampling programs. Drill core programs have been conducted from surface and from underground during the operating mine period from 1988 to 1992. Drill core sizes have included AQ, EXT (both 27 mm diameter); BQ (36.5 mm); NQ (47.6 mm); and HQ (63.5 mm). Surface drilling has included BQ, NQ and HQ coring, while underground drilling has included AQ, EXT and BQ coring. Records are incomplete for the underground drilling and some of the early surface drilling, but they indicate that underground core was either sampled whole, or split or sawn. It is assumed that 27 mm core was sampled whole, and it is reported that BQ was either sampled whole or split / sawn. Surface drill core was either split or sawn prior to sampling. Coarse grained (“nuggety”) gold mineralization is a feature of the Magino deposit. Consequently it has been noted by previous mineral resource estimators that samples of small-diameter core are likely to be unrepresentative, however no recent study has been undertaken to establish what is an acceptable minimum sample volume. In the author’s opinion, half-sawn NQ core is the minimum core diameter recommended for sampling of this deposit type. Apart from HQ coring in 2000, Golden Goose and Prodigy have maintained this standard. Snowden recommends that Prodigy continues to re-drill certain altered zones with NQ, where earlier pre-Golden Goose coring was BQ diameter or smaller. 11.2 Sample preparation methods and quality control measures employed before dispatch of samples 11.2.1 2009 - 2010 Golden Goose program Turcotte et al (2010) describe the process as follows: The drill core sampling method and approach was established by Golden Goose and verified by their geologist Gilles Provost, P.Geo. Turcotte et al (2010) found no indication of anything in the drilling, core handling and sampling procedures, or in the sampling methods and approach that could have had a negative impact on the reliability of the reported assay results. Drill core sections were selected for sampling and assaying based on the presence of sulphide mineralization or visible gold and quartz veins. After being examined and described (logged), the core was sampled according to an established protocol. First, the core of the selected section was cut in half with a core splitter, with one half put aside for eventual shipment to the laboratory. The second half of the core was then put back in its place in the core box and a tag bearing the same number was placed at the beginning of sawed core halves forming the selected sampled length. The metallic bowls, core splitter and work table were cleaned thoroughly before proceeding to the next sample. Each bag, after being closed and tied, was placed with about twenty (20) other samples into a larger bag for shipment.
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Trans-Provincial Freight Carriers Ltd came to the mine site, picked up the larger bags, and shipped them to Accurassay Laboratories in Thunder Bay, Ontario. 11.2.2 2010 2011 Kodiak and Prodigy program In the latter half of 2010 Kodiak identified sections of core from the 2006 drill program that had not been sampled, and undertook the following process to effect the sampling: Core that is to be sampled is first logged by the geologist and a cut line is drawn on the core, perpendicular to the dominant structural fabric. The core is cut by a Kodiak employee using a table-fed circular diamond saw into halves with one half sent for analysis and the remaining half labelled and retained in core boxes for future reference. Core cutting is supervised by the geologist logging core who ensures that a sequence of blanks, duplicates and standards is followed. Sampling occurs at 1 metre intervals, or less to account for lithological contacts. Zones of low core recovery are noted, however these are rare due to the competency of the rock mass. The half core selected for analysis is always from one side and no regard for presence of visible gold is made, in order to reduce sampling bias. The sampled half core is placed into clean, new transparent plastic sample bags with one pre-printed sample tag as laboratories have their own internal numbering system. The sample bags are rolled and sealed with staples. A metal tag is stapled in the core tray along with the meterage represented by the sample. The sample tag is also printed on the remaining sample card in the booklets and once all tags have been used the booklets are stored in the core logging facility. The sealed sample bags are placed in rice sacks in sequence for shipment to the laboratory. A copy of the sample submittal form is returned to the project geologist/project manager after being stamped by the receiving laboratory. Samples are transported by Kodiak personnel or picked up by the laboratories directly from the project. If a third party transportation company is used the number or rice sacks is accounted for and sealed with a numbered sealing tie. The number is controlled by the laboratory to ensure no tampering of the bags has occurred. The same procedures apply to the 2011 Prodigy program 11.2.3 Statement Drilling programs in 2010 and 2011 were conducted under the supervision of employees of Golden Goose, Kodiak and Prodigy. Employees of these companies undertook sampling of the core, under the supervision of staff Qualified Persons and this is normal industry practice. Gilles Provost, P.Geo. and Quentin Browne, P.Geo, were the Qualified Persons for site activities in 2010. Tom Pollock P.Geo is the Qualified Person for 2011. Following transport of half core samples to the analytical laboratory, all sample handling, reduction, splitting and analysis were conducted by independent registered companies and their employees.
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11.3 Analytical laboratories 11.3.1 Accurassay Laboratories Ltd Accurassay Laboratories Ltd is located at 1046 Gorham Street, Thunder Bay, Ontario P7B 5X5. Accurassay’s methods are accredited to ISO 17025 by the Standards Council of Canada (SCC). Accurassay Laboratories is an independent, privately owned company with 30 years of experience in the mineral analysis business in Canada. 11.3.2 ALS Chemex ALS Chemex is a division of ALS Laboratory Group, itself owned by the publically listed Campbell Brothers Limited company (Australia). ALS Chemex has a sample preparation facility located at 2090 Riverside Drive, Timmins, Ontario P4R 0A2. Prepared samples are shipped from Timmins to the ALS Chemex Val D’Or laboratory for analysis. The Val D’Or laboratory is located at 1324 Rue Turcotte, Québec J9P 3X6. ALS Chemex laboratories are registered to ISO 9001:2008 certification, and analytical facilities have received ISO 17025 accreditations for specific laboratory procedures. ALS Chemex commenced processing of Prodigy’s Magino samples on 21 June 2010. 11.4 Sample splitting and reduction 11.4.1 Accurassay Laboratories Ltd Turcotte et al (2010) describe the process as follows: Upon arrival at Accurassay Laboratories, rock samples are entered into the Laboratory Information Management System (LIMS). Samples are then dried, if necessary, and jaw crushed to approximately 8 mesh. A 250- to 500-gram subsample is taken and pulverized to 90% at 150 mesh, and then matted to ensure homogeneity. Silica sand is used to clean out the pulverizing dishes between each sample to prevent cross-contamination. The homogenized sample is then sent to the fire assay laboratory or the wet chemistry laboratory, depending on the analysis required. 11.4.2 ALS Chemex Upon arrival at the Timmins sample preparation facility, samples are entered into the LIMS. The average sample weight of split drill core is 2.2 kg. After drying, samples are crushed using a Terminator jaw crusher such that 70% of material passes 2 mm. Crushed material is then riffle split and 1 kg is pulverised such that 85% of material passes 75 µm. An extra 1 kg pulp is created for every 10th sample, for check analysis. In the year ending 30 March 2011, ALS Chemex has processed 5,843 drill core samples from Magino.
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11.5 Analytical procedures 11.5.1 Accurassay Laboratories Ltd Turcotte et al (2010) describe the process as follows: For precious metal analysis (gold, platinum, palladium, and/or rhodium), the sample is mixed with a lead-based flux and fused for one hour and fifteen minutes. A silver solution is added to each sample prior to fusion, producing a button that contains lead from the flux, the added silver and any precious metals from the sample. The button is placed in a cupelling furnace where all the lead is absorbed by the cupel, and a silver bead containing all the gold, platinum and palladium remains in the cupel. The cupel is then removed from the furnace and allowed to cool. Once the cupel is sufficiently cooled, the silver bead is placed in a labelled test tube and digested using aqua regia. The samples are bulked up with 1.0 ml of distilled de-ionized water and 1.0 ml of 1% digested lanthanum solution. The samples are allowed to cool before mixing to ensure proper homogeneity in the solution. Once the samples are settled, they are analyzed for gold, platinum and palladium using atomic absorption spectroscopy (AAS). The AAS unit is calibrated for each element using the appropriate ISO 9002 certified standards in an air-acetylene flame. The AAS results are checked by a technician, forwarded to data entry by means of electronic transfer, and a certificate produced. The Laboratory Manager checks the data, validates the certificates, and issues the results in the format requested by the client. 11.5.2 ALS Chemex Gold analysis is by way of fire assay of a 30 g or 50 g pulp sub-sample. All samples are first subject to procedure AuAA23 which uses AAS. Any sample that returns grades higher than 10 g/t Au is re-assayed with a gravimetric finish, per procedure AuGRA21. Details below are sourced from ALS Chemex. Fire Assay-Gravimetric Procedure for Ore Grade Samples Gravimetric methods involve the use of balances to weigh the element of interest, either in its pure elemental form or as a chemical compound. One of the most common gravimetric determinations is that of gold and silver following a fire Assay Fusion cupellation. The precious metal bead that remains following cupellation is an alloy of silver and gold. Weighing this bead will give the total weight of silver and gold. If the bead is then treated with dilute nitric acid, it is possible to remove the silver quantitatively. The residual mass consists of pure gold which can then be weighed separately, thus allowing the silver to be determined by difference. The balances used for this purpose are microbalances capable of weighing to the nearest microgram (one millionth of a gram). Analysis of Bullion for gold, silver and base metal content is another common procedure. The classical technique for determining gold is the fire assay fusion followed by cupellation and a gravimetric finish (method codes Au-GRA21, Au-GRA22and Au-GRA24).This is still the preferred procedure for the analysis of high grade ores. There is no upper quantitative limit applied for these procedures but clients should note that the detection limit is significantly higher than for procedures that use spectroscopic measurement techniques. Fire Assay-Atomic Absorption procedures for Low to Medium Grade Ore Samples The method involves fire assay collection followed by cupellation, dissolution of the precious metal prill and a pre-concentration solvent extraction step. The final determination is by flame AAS, providing a detection limit of 5 ppb.
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11.6 Quality control 11.6.1 2009 - 2010 Golden Goose program Turcotte et al (2010) describe the process as follows: A quality control program was present for the Golden Goose 2009-2010 diamond drilling program on the Magino property. The objectives of the quality control program were to monitor and document the quality and integrity of the sampling procedure, sample preparation, and assaying. Using a series of quality control samples, Golden Goose’s protocol stipulates that the entire sampling, sample preparation and assaying process be monitored and evaluated for: the integrity of field sampling and sample shipment by monitoring field blank results and sample shipment procedures; possible contamination during sample preparation or the assaying process by monitoring the results of field blank standards submitted as regular samples, and by monitoring laboratory analytical blank standard results; the suitability of crushing/splitting/pulverization sizes by measuring the precision of coarse and pulp duplicate samples; and the level of assaying accuracy by using external and internal (laboratory) certified reference standards and by assaying blind certified reference standards in each batch of samples. The laboratory inserted one (1) coarse crush duplicate sample split, selected at random, into each 10-sample sub-batch. Three (3) certified reference standards (CRMs) with different grades, all from Rocklabs in New Zealand, were used for quality control. One (1) field blank standard was prepared using “barren” rock from the project site, or other potentially “barren” material. One (1) of the three CRMs, or one (1) blank, was included in each batch of fifty (50) samples shipped by the Golden Goose geologist. 11.6.2 Accurassay Laboratories Ltd Turcotte et al (2010) describe the process as follows: Accurassay Laboratories employs an internal quality control system that tracks certified reference materials and in- house quality assurance standards. Accurassay Laboratories uses a combination of reference materials, including reference materials purchased from CANMET, standards created in-house by Accurassay Laboratories (and tested by round robin with laboratories across Canada), and ISO-certified calibration standards purchased from suppliers. Should any of the standards fall outside the warning limits (+/- 2SD), reassays are performed on 10% of the samples analyzed in the same batch, and the reassay values are compared with the original values. If the values from the reassays match the original assays, the data is certified; if they do not match, the entire batch is reassayed. Should any of the standards fall outside the control limit (+/- 3SD), all the assay values are rejected and all samples in that batch are reassayed. 11.6.3 2010 Kodiak sampling program Until September 2010, the protocol described in Section 13.5.1 continued. Since that time each batch of 20 samples included one (1) coarse reject, one (1) pulp duplicate, one (1) certified reference standard, and one (1) coarse blank.
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Should any of the standards fall outside the warning limits (+/- 2SD), reassays are performed on 10 of the samples analyzed in the same batch around the position of the standard, and the reassay values are compared with the original values. If the values from the reassays match the original assays, the data is certified; if they do not match, the entire batch is reassayed. Should any of the standards fall outside the control limit (+/- 3SD), all the assay values are rejected and all samples in that batch are reassayed. 11.7 Prodigy QAQC for 2011 Prodigy collates and monitors all quality control data through Maxwell Geosciences Data Shed and QAQCReporter softwares on a batch basis. Results for blank and standard assays are presented below. Prodigy has advised the author that reassays have been requested for instances where certified reference standard assays fall outside of the control lines (blue).
Figure 11.1 Gold assays for coarse blank inserted by Prodigy
Figure 11.2 Gold assays for standard CDN-BL-7
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Figure 11.3 Gold assays for standard CDN-GS-1F
Figure 11.4 Gold assays for standard CDN-GS-2E
Figure 11.5 Gold assays for standard CDN-GS-30B
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Figure 11.6 Gold assays for standard CDN-GS-2G
Figure 11.7 Gold assays for standard CDN-GS-1G
Figure 11.8 Gold assays for standard CDN-GS-1P5C
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Figure 11.9 Gold assays for standard CDN-GS-2E
Figure 11.10 Gold assays for standard CDN-GS-2G
Figure 11.11 Gold assays for standard CDN-GS-3G
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Figure 11.12 Gold assays for standard CDN-GS-4B
Figure 11.13 Gold assays for standard CDN-GS-7B
Figure 11.14 Gold assays for standard CDN-GS-P2
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Figure 11.15 Gold assays for standard CDN-GS-P4A
Assays are performed on an extra split sample to monitor precision. Results for 30 “repeats” show that precision is within acceptable limits for the grade range from 0 to 10 g/t Au for 70% of samples tested. Thus far there are insufficient results for the grade range from 10 to 50 g/t Au. 11.8 Specific gravity determinations On 11 April 2008, Golden Goose received 12 specific gravity analysis determinations from Accurassay Labs of Thunder Bay, Ontario, The samples were analysed by pycnometer using pulverised core. During 2011 Prodigy has undertaken 2,268 specific gravity determinations using the immersion method at its core shed in Dubreuilville. Solid full core samples between approximately 10 cm and 15 cm in length were taken at approximately 3 metre intervals regardless of composition. Samples were weighed using a RADWAG model PS 1200/C/2 digital balance. Samples were first weighed dry and then weighed in distilled de-ionised water by suspension ensuring the entire sample was submerged (Simpson 2011). As part of the QAQC program, Prodigy selected 49 samples from its dataset for specific gravity analysis checks at ALS Chemex. The check determinations indicated that Prodigy’s determinations were acceptable. 11.9 Author’s opinion on 2011 sample preparation, security and analytical procedures Procedures undertaken in 2011 have been under the supervision and security of the issuer’s Qualified Persons, as far as drill core sampling prior to dispatch. Laboratory sample reduction and analytical procedures have been conducted by independent accredited companies with acceptable practices. Prodigy ensures quality control is monitored through the insertion of blanks, certified reference materials and duplicates for the on-going 2011 drill campaign.
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12 Data verification Since the introduction of National Instrument 43-101 in 2000, the Magino drilling and sampling database has been re-compiled from first principles, updated as necessary and reported as verified by independent Qualified Persons on several occasions, as follows: 2000 (Reddick, 2001b) 2002 (Reddick, 2002) 2004 (Burns & Reddick, 2004) 2008 (Turcotte & Pelletier, 2008) 2009 (Turcotte & Pelletier, 2009) The current drilling and sampling database is an update of the 2008 recompilation by Turcotte & Pelletier, with the addition of data by Prodigy. In the 2008 exercise, Turcotte & Pelletier conducted the following (excerpted from Turcotte et al (2010): The purpose of an earlier mine site visit by author Carl Pelletier in December 2007 was to conduct a general review of the site. The visit was led by Gilles Provost of Golden Goose, field geologist for the Magino Project. Carl Pelletier reviewed some of the mineralized zones from five (5) Golden Goose diamond drillholes. Sample tags were still present in the core boxes and it was possible to validate sample numbers and gold grades for each of the samples in the mineralized zones. Not all of the diamond drill core was stored on the mine site, and some holes were therefore not available for verification. Geological logging was generally done using the standard logging codes for the Magino mine (i.e., the geological legend). These codes are amenable to management in a computer database. The result was coded lithological and mineralogical descriptors and brief descriptive columns. Unfortunately, the mine’s geological legend did not provide any codes for alteration, structural elements or mineralization, and the resulting level of detail is barely adequate for basic interpretation, especially in logs before 2000. Structural geology logging was also inadequate prior to 2000 (e.g., shears are observed but their orientations are consistently missing), but descriptions by geologists from 2000 to 2007 are more detailed. Many of the original paper logs and/or copies of logs are present at the Magino mine site. Paper logs for all surface and underground diamond drillholes from 1981 to 2010 were available for consultation. Only partial diamond drillhole information is available before 1981 (typically location and assays). No geotechnical logging was performed, therefore none of the diamond drillhole logs have records of fracture frequency or RQD (Rock Quality Designation). The data supplied by Golden Goose for the Magino mine were in the form of a GeoticLog and Gemcom software database. The Gemcom software database came from the Technical Report published by Snowden Mining Industry Consultants in 2004 (Burns and Reddick, 2004). Snowden used this database to produce resource estimation work in compliance with National Instrument (NI) 43-101. The GeoticLog software database only contained data for Golden Goose’s last diamond drillholes carried out in 2006-2010. InnovExplo transferred the GeoticLog software data into a Gemcom software database, and validated and corrected the data.
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InnovExplo carefully reviewed the database before generating cross-sections and carrying out the Mineral Resource Estimate. The integrity of the database was checked by Bruno Turcotte and Pierre Gauthier of InnovExplo. All surface and underground diamond drillholes were retained. The drilling database consists of 1,286 diamond drillholes totalling 124,118 m. Only the 2006 to 2010 diamond drillhole casings were surveyed in the field using a Sokkia GPS. Measurement precision and position accuracies were plus or minus five centimetres (±5 cm). Casings of earlier diamond drillholes were surveyed with traditional surveying equipment using the mine grid or a small GPS. Coordinates for pre-2006 surface diamond drillholes and all underground diamond drillholes are preserved as handwritten entries on summary log sheets. The data from location and orientation surveys for diamond drillholes from 1972 to 2007 were checked by Pierre Gauthier (InnovExplo) using available summary log sheets and old crosssections. Many mistakes were found and corrected by InnovExplo personnel. Generally, both tropari and acid tests were done for surface holes, but only acid tests were performed for underground holes. All drilling data are available as a computer database (Excel and Gemcom software). InnovExplo went to the Magino mine site to recover all historical information from past mining operations. Most of the information was available on paper, such as longitudinal sections, crosssections and level plans showing geological mapping and channel sampling. InnovExplo also recovered information from old back-up (Bernouilly) disks containing data from a 1991 survey of the ramp, drifts and stopes. More recent information from 1991 to 1993 was not found. All assays from the drilling database were verified by Bruno Turcotte and Pierre Gauthier of InnovExplo. In all, they reviewed 136,953 samples with assay certificates and/or log sheets. Unfortunately, there are no original assay certificates remaining for a large number of diamond drillholes, specifically between 1972 and 1991, and as such, the gold assay results are preserved only as handwritten entries on log sheets. A lot of missing assay data was found on log sheets and old drilling reports on the Ministry of Northern Development and Mines website (http://www.mndm.gov.on.ca/mines/default_e.asp). InnovExplo calculated an average gold value (g/t Au) for each sample with one or more re- assays. InnovExplo used these average gold values when calculating the Mineral Resource Estimate. All assays from the drilling database are now available in a computer database (Excel and Gemcom software). InnovExplo geologists noticed that the mine grid on the old set of cross-sections was not oriented for optimum geological interpretation. Using the information on geological maps from several levels, they adjusted the direction to create a new grid and generate another set of cross-sections, which were used to produce a new geological interpretation. InnovExplo oriented these cross-sections to be as perpendicular as possible to the auriferous structures. The resulting trend for the set is N075°, with each cross-section oriented at N345°. Channel samples were taken from each development for grade control purposes. The channel sampling in drifts was mapped out on a mapping sheet. Sample locations were drawn on the sheet (scale 1’’ = 20’) with the length (feet) and gold grade (oz/t) indicated. There were no geological descriptions for the samples, and the channel sampling data were not provided in a computer database. In addition, data were not available for all levels, sub-levels and raises, although the majority of the samples were present on the mapping sheet.
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The Gemcom software database containing old mine working data was obtained from the Technical Report published by Snowden Mining Industry Consultants in 2004 (Burns and Reddick, 2004). This database was reviewed by Serge Morin of InnovExplo before generating the new cross-sections and carrying out the Mineral Resource Estimate. Missing data were found on old plans stored at the Magino mine site. Length data were missing for some drifts and sublevels, raises and stopes, as were numerous assay results. When missing information was found, it was added to the Gemcom software database. Unfortunately, InnovExplo was unable to find the survey data for many of the raises. Consequently, the information for many raises is not present in the Gemcom software database. Lastly, InnovExplo discovered a survey error on one back plug at the start of the ramp. This error displaces the old mine workings by about one to five m (1-5 m) in plan and elevation. Consequently, the current survey coordinates for underground drillholes are not accurate. In December 2010 the author restored the 2004 Snowden Gemcom database that is archived in Snowden’s office in Vancouver, and conducted cross-checks with the 2008 InnovExplo Gemcom database and finally with the Gemcom database supplied by Prodigy. In September 2011 Prodigy provided Snowden with an updated Gemcom database, for the November Resource Estimate update. Internal validation and integrity checks were conducted on the database submitted to Snowden by Prodigy. 12.1 Site verification In February and August 2011 the author visited site and inspected drill core laid out for the 2011 drilling program currently underway for Prodigy. The following items were verified: Locations of drill rigs and operation, however operations were suspended due to a driller’s accident. Cross-check of Prodigy drill logs with drill core. Core handling, storage and security. Core logging process, alignment, recovery, mark-up and core sawing, sampling. Insertion of blanks, certified reference material. Core farm at the mine site where Prodigy are conducting an inventory, for subsequent re-sampling consideration. Density measurements using water displacement weighing method. Cross-check of low grade and high grade assays against alteration and visible gold in drill core. Review of drill logs and assay sheets at the mine office. The author has not undertaken a complete data verification study, however sufficient checks have been completed to satisfy the author that the Magino drilling and sampling data is suitable to use in estimating a Mineral Resource to support a preliminary economic assessment.
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13 Mineral processing and metallurgical testing Data available for process design is sourced from metallurgical data from the historical work by Lakefield Research (Lakefield) in 1997 as part of the Prefeasibility Study for a 2.6 Mtpa open pit mine and leach plant prepared by BLM Bharti Engineering Ltd. for Golden Goose in 1997, and Kappes Cassiday & Associates (KCA) in 1999. The samples tested in Lakefield Research were taken from drill core and surface bulk samples by BLM Bharti Engineering as representative for future operations (BLM Bharti Engineering Limited, 1997). In September 2011, Prodigy reported the results of metallurgical testing by G & T Metallurgical Services Ltd (“G & T”) of twenty samples from cut and halved drill core. 13.1 Historic test data and reports In 1997, Lakefield conducted ore hardness, gravity concentration, column leach and bottle roll tests on a core and a surface bulk sample. The results are contained in the report, “An Investigation of the Recovery of Gold from Magino Project Samples”. In 1999, KCA conducted further column leach and bottle roll tests on a mafic volcanic sample and a granodiorite sample. The results are reported in (Kappes, Cassiday and Associates, 1999). The Lakefield work showed low levels of gravity recoverable gold. Both Lakefield and KCA reported low recoveries from column tests, hence the ore is not amenable to heap leaching but high recoveries from bottle roll tests, indicating that grind-CIL is the preferred process. 13.1.1 Grindability and CIL Efficiency Lakefield conducted one standard Bond ball mill work index test on each of the core and bulk sample. The results in Table 13.1 showed similar and relatively low ore hardness for both samples, indicating relatively low grinding energy requirements.
Table 13.1 Grindability data
Bond ball work index Imperial Metric Core sample 11.5 12.6 Bulk samples 11.7 12.8
The results of the direct cyanidation bottle roll tests are shown in Table 13.2 (Lakefield) and Table 13.3 (KCA).
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Table 13.2 Bottle leach results
%-200 Reagents, kg/t Calc. Head Residue g/t % Au Extraction mesh NaCN CaO g/t Au Au 24 h 48 h Core 84 0.30 0.48 1.34 0.03 85.0 97.8 sample 72 0.13 0.46 1.03 0.08 75.0 92.2 60 0.13 0.50 0.95 0.07 71.0 92.6 Bulk 84 0.37 0.57 0.75 0.06 83.0 92.0 sample 72 0.15 0.48 0.90 0.04 81.0 95.6 59 0.14 0.51 0.76 0.05 77.0 93.4
(Lakefield)
Table 13.3 Bottle leach results – samples at minus 150 microns
Reagents, kg/t Calc. Head Residue % Au Extraction NaCN CaO g/t Au g/t Au 24 h 48 h Mafic volcanics 0.49 0.76 0.73 0.05 91.9 93.2 Grano-diorite 0.45 0.61 1.57 0.05 96.1 96.8
(KCA) 13.2 September 2011 testwork Twenty samples were submitted to G & T and ranged in feed grade from 0.07 g/t Au to 5.99 g/t Au. The testing intentionally focused on lower grade material as most previous metallurgical testing was completed on higher grade samples. A total of twenty samples were subjected to the testing program; for the ten samples with feed grades greater than 0.35 g/t Au (cut off grade for the gold resource), combined gravity and cyanide gold recovery was 95% (range: 86 to 99%). Average gold recovery for all twenty samples in the test program was 92%. For the ten samples with grades less than cut off, average recovery was 89%, ranging from 63 to 99%. The twenty samples averaged about 15 kilograms in weight and were composited from cut and halved drill core. A total of 313 kilograms of core was used in the study. The samples were ground to 80 % passing 75 microns and then subject to industry standard gravity concentration. Average gold recovery in the gravity circuit was 33%. The tailings from the gravity concentration circuit were then subjected to a 48 hour cyanide bottle roll test at a targeted cyanide concentration of 250 ppm. Average cyanide consumption was 0.02 kilogram/tonne (Prodigy News Release 15 September 2011).
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14 Mineral resource estimates 14.1 Summary Mineral Resource estimates for the Magino property are reported in categories of Indicated and Inferred, in accordance with the CIM Definition Standards - For Mineral Resources and Mineral Reserves (CIM Code), as follows:
Table 14.1 Indicated Mineral Resource estimate – November 2011
Reporting Gold Gold Category cut-off Tonnes Grade g/t Density grams ounces CIM Code grade g/t X 1,000 Au Au X 1,000 X 1,000
Indicated 0.35 2.72 67,555 1.00 67,690.5 2,176.3
Table 14.2 Inferred Mineral Resource estimate – November 2011
Reporting Gold Gold Category cut-off Tonnes Grade g/t Density grams ounces CIM Code grade g/t X 1,000 Au Au X 1,000 X 1,000
Inferred 0.35 2.72 54,242 0.99 53,537.3 1,721.2
In the above Mineral Resource tables there may be inconsistences due to rounding. Estimates are rounded since the figures are not precise calculations. There are no Mineral Reserves reported in this Technical Report. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resource will be converted into Mineral Reserve. 14.2 Disclosure Mineral Resources reported in Section 14 were prepared by the W. A. Dzick, Principal Consultant, an employee of Snowden Mining Industry Consultants Inc. under the supervision of the author who is an employee of Snowden Mining Industry Consultants Inc. 14.2.1 Known issues that materially affect mineral resources Snowden is not aware of any permitting, legal, title, taxation, socio-economic, and marketing or political issues that could materially affect the mineral resource estimates. There are a number of items that will require addressing by Prodigy in order to update mineral resource estimates for use in feasibility studies. These are discussed below: Lithological records, interpretation of alteration zones and vein structures The current database has incomplete and inconsistent records for lithology and alteration. A revised 3D interpretation of quartz-sericite-pyrite alteration zones and mineralised veins will be required for future mineral resource estimates.
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The identification of seventeen (17) structural zones has allowed the deposit to be sub- domained for local estimation purposes. Density measurements A tonnage factor of 2.72 gm/cc for granodiorite is used in reporting of Mineral Resource estimates. The February 2011 tonnage factor of 2.82 gm/cc used in the February 2011 Resource Estimate was based on laboratory density determinations for 10 samples (Turcotte, B., and Pelletier, C., 2009). Prodigy have since made approximately 700 additional determinations at site that indicate a lower tonnage factor of 2.72 for the Webb Lake stock, however the determinations require confirmation under laboratory conditions (Table 14.3).
Table 14.3 Prodigy density data
Lithology # Samples Average SG Value Mafic meta-volcanics 68 2.81 Intermediate meta-volcanics 34 2.78 Chemical meta-sediments 23 3.03 Synvolcanic Felsic to 513 2.71 Intermediate Intrusive Felsic to Intermediate 5 2.71 Intrusive Mafic Intrusive 12 2.81 Diabase Dyke 60 3.01 Quartz Vein 1 2.64
Historical data There are uncertainties in respect of pre-Golden Goose historical data that remain unverifiable (Section 6 History). The current estimates have not incorporated any of the sample grades from underground channel and core drilling of less than 50 metres, as these sample groups have a potential bias. The potential for bias exists because descriptions of mine laboratory sample preparation and quality control methods in the period 1988 to 1992 do not conform to current industry standards and the small diameter core samples obtained from underground drilling would appear to be unrepresentative as well. A comparison was made between underground drillholes less than 50 metres total length and greater than 50 metres total length and surface drillhole assay data after compositing to 5 m intervals (Figure 14.1) and (Figure 14.2) The data was declustered within a region measuring 650 mE by 600 mN, and occurring within 295 m and 165 m relative elevations. The study indicated that the less than 50 metre total length underground drilled composites were approximately 30% higher in grade than the surface drilled composites and the greater than 50 metre total length underground drilled composites exhibited much less potential bias (Dzick 2011).
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Figure 14.1 Comparison of declustered composites – surface drilling vs underground drilling less than 50 metres total length
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Figure 14.2 Comparison of declustered composites – surface drilling vs underground drilling greater than 50 metres total length
The lithological information from underground core drill logs, however is relevant and was used for geological interpretation. Many historic (predating Golden Goose) surface drillholes with adequate core diameter remain in the database and are incorporated into the Mineral Resource estimates. Intervals from these holes have been subjected to re-sampling and assaying, however this task is incomplete. Prodigy has embarked on an in-fill drilling and sampling program and it is expected that much of the historic assay information will be superseded for use in subsequent feasibility studies. Prior resource estimates for Magino have included a component of the Measured category. No Measured resources are currently categorised by the author to reflect the uncertainties described above. 14.3 Assumptions, methods and parameters The estimates were prepared in the following steps:
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Data validation. This is described in Section 12 Data Verification. Data preparation – this and subsequent steps are summarised below. Exploratory data analysis of gold data. Geological interpretation and modelling. Establishment of block models. Compositing of assay intervals. Consideration of grade outliers. Variogram analysis. Derivation of kriging plan. Grade interpolation of gold values. Deduction for prior mined volume. Classification of estimates with respect to CIM Definition Standards. Resource tabulation and resource reporting. 14.3.1 Data provided Prodigy has focused its geological and resource evaluation program on assessment of the wide zones of quartz-pyrite-sericite altered granodiorite that host the former underground mine workings at Magino. Throughout 2011 Prodigy has re-logged existing core, taken samples of previously intact core to provide fuller coverage of sampling throughout the alteration zones, and updated the drillhole and sample database accordingly to ensure consistency. For the purpose of this report, specific areas of the deposit were identified as uniquely similar in alteration, mineralization, structure as well as level of dissemination vs. narrow high grade mineralization. Seventeen (17) individual 3D solid domains were created utilizing lithology, sericite alteration, foliation information and assay information obtained from the 2011 drill campaign. Prodigy geologists believe these interpretations are accurately identifying areas in the deposit which contain similar style mineralization, in particular the NE zone, The Central zone and the Southwest zone. Zones were created in Gemcom drawing rings in 25 m spaced cross sections and then connecting those rings to create 3D solids. The zones were more readily identified where more information was available from the current drilling campaign. Extension of these zones was carried across historic drilling information by utilizing grade to identify continuation of the interpreted zone. Detailed alteration modelling was not possible due to the lack of digitized data from historic drilling. The database used by the author contains 512 surface diamond drillholes (for a total of 103,491 m; average length 202 m) and 980 underground diamond drillholes (for a total of 60,345 m; average length 62 m) (Figure 14.3 and Figure 14.4).
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Ninety-four surface drillholes were completed in the period from 1997 to 2010 and comprise HQ and NQ diameter core. All underground drillholes were completed in the period 1984 to 1991 and are dominated by AQ diameter core with some BQ diameter core, clearly clustered around the underground workings and, in some cases subsequently stoped out. Since the sample volumes of the short underground drill cores are markedly less than the surface and longer underground drill cores, the author elected to use only the assays from the surface and longer underground drillholes in the grade estimates. The underground diamond drillholes retained for the resource estimates comprised 484 drillholes for a total of 48,896 m, average length 100 m. Assay information from all the underground drill cores however was used to develop the geological interpretation through a categorical indicator method. Prodigy also provided geological interpretations in the form of wireframes for the major rock units at Magino, as follows: Overburden Webb Lake granodiorite stock, and internal synvolcanic felsic and intermediate sills Late stage diabase dyke Wireframes for the surface topography and underground mining areas were also provided.
Figure 14.3 Distribution of underground drillholes
N
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Figure 14.4 Distribution of surface drillholes
14.3.2 Geological interpretation and modelling The area of interest covers 1,350 m parallel to the Goudreau deformation zone. The 075 degree trending Webb Lake grandiorite stock and the alteration zones that aggregate up to 300 m width, dip steeply to depths of up to 600 m. At Magino the Webb Lake stock is covered by up to 30 m thickness of fluvio-glacial material. The felsic and mafic volcanic country rock surrounding the stock does contain examples of low grade mineralization encountered by drilling, however the main focus remains the broad low-grade alteration zones. A late stage diabase dyke transects the stock. 14.3.3 Compositing of assay intervals The dominant sample interval is 1 metre. A 5 metre composite length interval was applied for compositing underground and surface cored drillholes used for resource estimation. Unsampled intervals within the mineralized zones were assigned a zero grade during the compositing process. Basic statistics for gold composites are presented in Table 14.4 and Figure 14.5. Basic statistics for the composites located within the mineralized zones as modelled in Section 14.3.3 are presented in Table 14.5 and Figure 14.6. This sub-set was subsequently used for grade estimation.
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Table 14.4 Statistics for all 5 m composites
Min Mean Number of Max g/t g/t CV samples Au g/t Au Au
28,342 0.0 355.83 0.74 4.24 Distribution g/t Au
10% 0.02
20% 0.06
30% 0.10
40% 0.16
50% 0.23
60% 0.34
70% 0.50
80% 0.77
90% 1.45
95% 2.73
97.5% 4.93
99% 10.11
Figure 14.5 Log histogram of all 5 m composites
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Table 14.5 Statistics for mineralized composites
Min Mean Number of Max g/t g/t CV samples Au g/t Au Au 23,900 0.0 355.8 0.82 4.03 Distribution g/t Au 10% 0.04 20% 0.09 30% 0.15 40% 0.20 50% 0.29 60% 0.39 70% 0.57 80% 0.87 90% 1.65 95% 3.10 97.5% 5.60 99% 11.47
Figure 14.6 Log histogram of 5 m gold composites for mineralized zones
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14.3.4 Consideration of grade outliers and estimation method Assay populations from gold deposits are generally skewed and contain high grade outliers that can introduce bias to mineral resource estimates. Estimation practice is to use grade caps or top cuts when using estimation methods such as inverse distance weighting or ordinary kriging. In the Magino case, the zones of mineralization are characterized by mixing of background low grade disseminated regions and higher grade vein styles (Figure 14.7). The author elected to use a distance grade capping strategy to address the mixed grade populations and grade outliers. The impact of high gold grade outliers was controlled by using restricted search dimensions; a combination of “sample per hole” restrictions; octant search and maximum distance extrapolation restrictions for grades above 22 g/t Au. Grades were not capped further.
Figure 14.7 Log probability plot indicating mixed populations
14.3.5 Variogram analysis Grade continuity across each structural domain was investigated using variogram analysis in Snowden’s Supervisor software. Experimental variograms were modelled for each of the 17 structural domains and the granodiorite stock. For the few domains that lacked sample density for meaningful variography the granodiorite results were used. The spherical model parameters that were fitted to the variograms are provided in Table 14.6.
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Table 14.6 Variography by domain
Angle 1 Angle 2 Angle 3 Domain Component Range Range Range X Y Z – increment 1 (m) 2 (m) 3 (m) rotation rotation rotation
C0 – 0.66 -- -
llsh1 C1 – 0.32 26.5 -17 -169.5 80 100 50
C2 – 0.03 300 300 100
C0 – 0.66 -- -
llsh2 C1 – 0.32 26.5 -17 -169.5 80 100 50
C2 – 0.03 300 300 100
C0 – 0.69 -- -
bend C1 – 0.29 -30 0 114 21.5 14.5 22.5
C2 – 0.02 114 151 155
C0 – 0.42 -- -
c1 C1 – 0.44 090-90 20 18 16
C2 – 0.13 183 480 187
C0 – 0.85 -- -
c2 C1 – 0.14 39.5 22.5 134 19.5 30 31
C2 – 0.01 82 83.5 53
C0 – 0.84 -- -
n C1 – 0.10 80 -44 -104 80.5 22.5 15
C2 – 0.06 126.5 115.5 233
C0 – 0.84 -- -
n1 C1 – 0.10 80 -44 -104 81 23 15
C2 – 0.06 127 116 233
C0 – 0.81 -- -
nc C1 – 0.14 10 -14 69 33 23 36
C2 – 0.04 250 187 298
C0 – 0.66 -- -
nc1 C1 – 0.32 26.5 -17 -169.5 80 100 50
C2 – 0.03 300 300 100
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Angle 1 Angle 2 Angle 3 Domain Component Range Range Range X Y Z – increment 1 (m) 2 (m) 3 (m) rotation rotation rotation
C0 – 0.66 -- -
nc2 C1 – 0.32 26.5 -17 -169.5 80 100 50
C2 – 0.03 300 300 100
C0 – 0.66 -- -
ne C1 – 0.26 59.5 -19 -106 31 73.5 24
C2 – 0.08 146 250 157
C0 – 0.66 -- -
rich C1 – 0.32 26.5 -17 -169.5 80 100 50
C2 – 0.03 300 300 100
C0 – 0.42 -- -
se C1 – 0.53 60 -5 19 12.5 6.5 17.5
C2 – 0.05 203 34 158
C0 – 0.78 -- -
sw C1 – 0.19 174 26 24 42.5 54 35.5
C2 – 0.04 488.5 278.5 239.5
C0 – 0.66 -- -
sw1 C1 – 0.32 26.5 -17 -169.5 80 100 50
C2 – 0.03 300 300 100
C0 – 0.73 -- -
sw2 C1 – 0.24 155 -10 -2 14.5 20 16
C2 – 0.03 83 86.5 203
C0 – 0.36 -- -
sw3 C1 – 0.49 357 -13 59 78 8
C2 – 0.15 163.5 71.5 198.5 14.3.6 Establishment of block models A Vulcan bmf Project block model with cell dimensions of 10m (X) 10m (Y) 5m (Z) was coded to reflect the surface topography, base of overburden, Webb Lake granodiorite contacts, late stage diabase dyke, and the 17 domain solids.
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14.3.7 Grade interpolation parameters Gold grades were interpolated from 5m length-weighted un-cut composites into the domain solids by ordinary kriging, using parameters established from the variographic analyses (Table 14.6). The interpolation was controlled by: Minimum / maximum numbers of composites: set to 3 / 20 per block Discretisation: 2 x 2 x 1 Octant search type Maximum samples per octant: 4 Minimum number of octants: 2 Maximum number of composites per hole: 2 High yield limit threshold value: 22 g/t Au High yield limit ellipse: 60 m x 12.5 m x 35 m Search ellipse: 170 m x 25 m x 120 m 14.3.8 Density assignment Density factor of 2.72 was assigned to all blocks, based upon approximately 2,300 specific gravity determinations. 14.3.9 Prior mining A 3D wireframe model of the underground development and stopes was stored as percent volumes in the block model to ensure that the reported mineral resource estimates are depleted for prior mining. 14.3.10 Resource classification The resource classification definitions used for this estimate are those published by the Canadian Institute of Mining, Metallurgy and Petroleum in their document “CIM Definition Standards”. Measured Mineral Resource: that part of a Mineral Resource for which quantity, grade or quality, densities, shape, physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity. Indicated Mineral Resource: that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.
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Inferred Mineral Resource: that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. In order to identify those blocks in the Vulcan block model that could reasonably be considered as a Mineral Resource, the block model was filtered by a conceptual pit shell wireframe. A conceptual pit shell was developed using Whittle software in order to identify those parts of the block model that have reasonable prospects for eventual economic extraction. Parameters used were: 52º (overall pit slope); $1.25 /t mining cost; $1500 per oz gold price; 95% process recovery; $7 /t process cost. The blocks occurring within the conceptual pit shell were classified as either Indicated or Inferred. Mineralised blocks lying outside the pit shell are too low grade and lack geological continuity to be considered as part of a Mineral Resource estimate. After considering the distribution of composites in the deeper parts of the pit shell through the examination of geostatistical parameters from the kriging system, the author constructed a Vulcan solid for classification purposes. An Inferred Classification applies to all blocks in the Mineral Resource that lie beyond depths of 150 m but within the limit of the conceptual pit shell. Above 150 m, resource blocks that lie within the search ellipse and have been estimated by at least 12 samples have been classified as Indicated Resource blocks. The author has not classified any Measured blocks after considering the uncertainty in geological interpretation; the high nugget environment; short ranges of gold grade continuity; use of assigned densities and the current drill spacing. 14.3.11 Resource reporting The Mineral Resource estimates are reported for a range of cut-off grades in Table 14.7 and Table 14.8. A gold cut-off grade of 0.35 g/t Au for mineral resource reporting is recommended as it reflects the parameters used in the pit shell construction and is reasonable, given that there are existing open pit operations in similar geological terranes in Québec that are currently reported at cut-off grades of 0.30 to 0.32 g/t Au.
Table 14.7 Indicated mineral resource reported for a range of cut-off grades
Reporting cut-off grade Tonnes Gold grams Gold ounces Grade g/t Au g/t Au X 1,000 X 1,000 X 1,000 2.00 5,562 3.36 18,704.5 601.3 1.50 10,345 2.60 26,928.0 865.7 1.00 20,779 1.91 39,603.9 1,273.3 0.75 31,730 1.55 49,086.0 1,578.2 0.50 50,056 1.21 60,367.0 1,940.8 0.35 67,555 1.00 67,690.0 2,420.8
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Table 14.8 Inferred resource reported for a range of cut-off grades
Reporting cut-off grade Tonnes Gold grams Gold ounces Grade g/t Au g/t Au X 1,000 X 1,000 X 1,000 2.00 4,272 3.47 14,834.8 476.9 1.50 7,345 2.74 20,096.3 646.1 1.00 15,897 1.91 30,411.8 977.7 0.75 25,072 1.53 38,335.5 1232.5 0.50 40,464 1.10 47,747.9 1535.1 0.35 54,242 0.99 53,537.3 1721.2
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15 Adjacent properties There is no information on adjacent properties for inclusion in this report.
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16 Other relevant data and information There is no other relevant data and information for inclusion in this report.
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17 Interpretation and conclusions An updated Mineral Resource estimate has been prepared for Prodigy’s Magino gold property located near Wawa in Ontario. The Indicated and Inferred estimates are intended for use to update a preliminary economic assessment of an open pit mining scenario. In the process of preparing the estimates, it was concluded that: The supplied database included 512 surface diamond drillholes (total of 103,491m) and 980 underground diamond drillholes (for a total of 60,345 m). Of the underground drillholes, the author elected to use only assays in the grade estimates from the longer drillholes and these amounted to 484 drillholes for a total of 48,896 m. All underground drillholes were completed in the period 1984 to 1991 and are dominated by narrow AQ diameter core with some BQ diameter core, clearly clustered around the underground workings as expected and, in some cases subsequently stoped out. Most underground core was sampled in its entirety. Sample volumes of the underground drill cores are markedly less than the surface drill cores and are likely unrepresentative given the incidence of coarse gold. Assays of underground core were performed at the mine laboratory during operations in the period 1987 to 1991, and are unverifiable. Comparisons of underground core assays with surface core assays indicate a potential bias. Subsequent analysis allowed the exclusion of that set of underground drill cores which exhibited the most potential bias. Ninety-four (94) surface drillholes were completed in the period from 1997 to 2010 and comprise HQ and NQ diameter core. Intervals from these holes have been subjected to re-sampling and assaying, however this task is incomplete. Prodigy has embarked on an in-fill drilling and sampling program and it is expected that much of the historic assay information will be superseded for use in subsequent mineral resource estimates. The geological interpretation used in the resource estimates will require updating to better reflect the distribution of quartz-sericite-pyrite zones and mineralised veins. The mineralized zones were geologically interpreted as structural domains and modelled as 3D solids using GEMS software. Blocks within these domains were estimated using ordinary kriging of 5 m composites. The Mineral Resource estimates were generated using Ordinary Kriging in Vulcan software. Search restrictions were applied to reduce the impact of high grade composites. The resource reporting was constrained by a conceptual pit shell to identify those regions of the model that have reasonable prospects for economic extraction. Eventual drill spacing of 25 m or less, confirmed through statistical analysis in a drill hole spacing study, should be considered for categorisation of Measured Mineral Resource estimates, and a bulk sampling program completed to validate this category.
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18 Recommendations The author makes the following recommendations: Continue an in-fill drilling and sampling program so that all of the historic assay information can be replaced for use in subsequent mineral resource estimates. It will be possible to re-sample existing core and to ensure QAQC programs are in place, thus making use of the available historic core. Update the drillhole and sample database with consistent lithogical, alteration and structural records for historic data where possible. Complete a new series of 3D interpretations to map the distribution of quartz-sericite- pyrite alteration and veins. Consider multi-element assays to assist in characterization of alteration zones and geological interpretation. Use the current resource block model for an update of the preliminary economic assessment reported in March 2011. Compile exploration data for the Gould property and develop a budget and schedule for an exploration program. Review and update current domain solids to ensure all mineralized rock is captured within a domain.
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19 References AMEC Earth & Environmental Ltd, 2002. Reference TC630.01, Magino Mine Tailings Containment Area, Dam Safety Inspection 2002. Magino Mine, Wawa, Ontario, November 2002. Arias, Z. G., and Heather, K. B., 1987. Regional structural geology related to gold mineralization in Goudreau-Lochalsh area, District of Algoma; in Summary of Field Work and Other Activities 1987, Ontario Geological Survey, Miscellaneous Paper 137, pages 146-154. Arias, Z., and Helmstaedt, H., 1990. Structural evolution of the Michipicoten (Wawa) greenstone belt, Superior Province; in Geoscience research Program, Summary of Research 1989-1990; Ontario Geological Survey, Miscellaneous Paper 150, pages 107-114. Attoh, K., 1981. Pre- and Post-Doré sequences in the Wawa volcanic belt, Ontario; in Current Research, Part B; Geological Survey of Canada, Paper 81-1B, pages 49-54. Ayres, L. D., 1969. Geology of Townships 31 and 30, Ranges 20 and 19; Ontario Department Mines, G.R-69, 100 pages. Ayres, L. D., 1983. Bimodal volcanism in Archean greenstone belts exemplified greywacke composition, Lake Superior Park, Ontario; Canadian Journal of Earth Sciences, v. 20, p. 1168-1194. BLM Bharti Engineering Limited, 1996. Magino Mine Study (“Revised”), Internal Report. Golden Goose Resources Inc. BLM Bharti Engineering Limited, 1997. Preliminary Feasibility Study for a 2.6M tpa Open Pit Mine and Leach Plant, Magino Gold Project, Dubreuilville, Ontario, Internal Report, Golden Goose Resources Inc. Bloom, L., 2009. Memo from ASL to Golden Goose Resources “Preliminary comments on the Magino project re-assay program”. Internal Report, Golden Goose Resources Inc. 9 pages. Bourne, D. A., 1984. An evaluation of the Magino Gold Mine, Goudreau-Lochalsh area, Ontario. Report presented to Prophet Resources Ltd and June Resources Inc. Donald A. Bourne, B.Sc., M. Sc., P. Eng. Consulting Geologist. Internal Report. 28 pages. Bourne, D. A., Botsford, J. N., and Ross, M., 1987. Report on the Magino Gold Project. Commissioned by Muscocho Explorations Ltd. Report presented to Muscocho Explorations Ltd and McNellen Resources Inc. Internal Report. 172 pages. Bourne, D.A., Mongeau, J. R., Seeber, O. A., Wade, J., and Wilson, B. H., 1983. The Magino Mine Technical and Economic Study. 96 pages. (Assessment File Research Imaging AFRI file No. 42C08SW0235 on Ministery of Northern Development and Mines website) Buchan, K. L., and Ernst, R. E., 2004. Diabase dyke swarms and related units in Canada and adjacent regions (with accompanying notes): Geological Survey of Canada, Map 2022A, 1:5,000,000. Burns, N. R., and Reddick, J., 2004. Technical Report Magino Property, Wawa, Ontario, Canada. Report presented to Golden Goose Resources Inc. Report prepared by Snowden Mining Industry Consultants. Report published on SEDAR website dated 6 April, 2004, 43 pages.
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Card, K. D. and Ciesielski, A. 1986. DNAG #1. Subdivisions of the Superior province of the Canadian Shield. Geoscience Canada 13. p. 5-13. Card, K. D., and Poulsen, K. H., 1998. Geology and mineral deposits of the Superior Province of the Canadian Shield; Chapter 2 in Geology of the Precambrian Superior and Grenville Provinces and Precambrian Fossils in North America, (co-ord.) S. Lucas; Geological Survey of Canada, Geology of Canada, no. 7, pages 12-194. Corfu, F., and Sage, R. P., 1992. U-Pb constraints for deposition of clastic metasedimentary rocks and late-tectonic plutonism, Michipicoten belt, Superior Province; Canadian Journal of Earth Sciences, v. 29, pages 1640-1651. Corfu, F., and Stott, G. M., 1986. U-Pb ages for late magmatism and regional deformation in the Shebandowan belt, Superior Province, Canada. Canadian Journal of Earth Sciences, v. 35, pages 1075-1082. Davis, D. W., and Lin, S., 2003. Unravelling the geologic history of the Hemlo Archean gold deposit, Superior Province, Canada: A U-Pb geochronological study. Economic Geology, v. 98, pages 51-67. Deevy, A. J., 1992. Magino, The making of a mine. Muscocho Explorations Ltd. Internal Report. 28 pages. Deevy, A. J., 1994. Magino, The making of a Mine. Exploration and Mining Geology, vol. 3, No. 1 pages 45-51. Dubé, B. and Gosselin, P., 2007. Greenstone-Hosted Quartz-Carbonate Vein Deposits. In Goodfellow, W. D., ed. Mineral Deposits of Canada: A Synthesis of Major Deposit-Types, District Metallogeny, the Evolution of Geological Provinces, and Exploration Methods. Geological Association of Canada, Mineral Deposits Division, Special Publication No. 5. p. 49-73. Dubé, B., O’Brien, S., and Dunning, G. R., 2001. Gold deposits in deformed terranes: examples of epithermal and quartz-carbonate shear-zone-related gold systems in the Newfoundland Appalachians and their implications for exploration. In North Atlantic Symposium, St-John’s, NF, Canada. Extended abstracts volume, 27-30 May, 2001. p. 31-35. Dyck, D. and Bleiker, D. 2003. Closure Plan – Amendment No. 1 – Golden Goose Resources Inc., Magino Mine Site. Prepared by AMEC Earth & Environmental Limited (TC630.01). February 2003. 22 pages, appendices and plan. Dzick, W., 2011. Report on Magino Drillhole Analysis. Comparison of drill sampling campaigns – Magino Gold Project, Ontario, Canada. Snowden Mining Consultants. Internal Report. 20 pages. Goodwin, A. M., 1962. Structure, stratigraphy and iron formation, Michipicoten area, Algoma District, Ontario, Canada; Geological Society of America Bulletin, v. 73, pages 561-586. Goodwin, A. M., Ambrose, J. W., Ayers, L. D., Clifford, P. M., Currie, K. L., Ermanovics, I. M., Fahrig, W. F., Gibb, R. A., Hall, D. H., Innes, M. J. S., Irvine, T. N., MacLaren, A. S., Norris, A. W., Pettijohn, F. J., and Ridler, P. H., 1972. The Superior Province. In: Variations in Tectonic Style in Canada, (eds.) R. A. Price and R. W. Douglas; Geological Association of Canada, Special Paper 11, pages 528-623.
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Hall, D., Williston, C., and Legault, J. M., 1997. Regarding the Induced Polarization Surveys over the Magino Mine Project, Finan Township, Ontario on behalf of Golden Goose Resources Inc. Report prepared by Quantec Consulting Inc. Internal Report. 25 pages. Heather, K. B., 1989. The geological and structural setting of gold mineralization in the Renabie portion of the Missanabie-Renabie gold district, Wawa gold camp; in Summary of Field Work and Other Activities 1989, Ontario Geological Survey, Miscellaneous Paper 146, pages 99-107. Heather, K. B., and Arias, Z. G., 1987. Geological setting of gold mineralization in Goudreau-Lochalsh area, District of Algoma; in Summary of Field Work and Other Activities 1987, Ontario Geological Survey, Miscellaneous Paper 137, pages 155-162. Heather, K. B., and Arias, Z., 1992. Geological and structural setting of gold mineralization in the Goudreau-Lochalsh area, Wawa gold camp. Ontario Geological Survey, Open File Report 5832. 159 pages. Hoffman, P. F. 1988. United plates of America, the birth of a craton: Early Proterozoic assembly and growth of Laurentia; Annual Review of Earth and Planetary Science, v. 16, pages 543-603. Hoffman, P. F., 1989. Precambrian geology and tectonic history of North America; in The Geology of North America – An overview, (ed.) A. W. Bally and A. R. Palmer; Geological Society of America, The Geology of North America, Volume A, pages 447-512. Jackson, S. L., and Sutcliffe, R. H., 1990. Central Superior Province geology; evidence for an allochthonous, ensimatic, southern Abitibi greenstone belt; Canadian Journal of Earth Sciences, v. 27, pages 582-589. Kappes, Cassiday & Associates, 1999. Report of Metallurgical Testwork, Magino Property. Internal Report. Koskitalo, L. O., 1983. Magino Gold Project, Wawa Area, Ontario. Report presented to McNellen Resources Inc. James Wade Engineering Ltd. Toronto. Project No. WE83-068. Internal Report. 67 pages. Leclerc, A., and Fleury, F., 2009. Propriété Magino, Levé Pédogéochimique d’humus, Grilles Magino SE et NO. Gestion Aline Leclerc Inc. Internal Report. 32 pages. McBride, D. E., 1991. Report of the geology, reserves and potential of the Magino Deposit, Finan township, Ontario. Internal Report. 19 pages. McBride, T.I. and Duckworth, P., 2010. Hydrogeological Study, Magino Mine Project, Finan Township, District of Wawa, Ontario. Golden Goose Resources Inc. Prepared by AMEC Earth & Environmental – Project TC63001 2000. March 17, 2010. 53 pages. McGill, G. E., 1992. Structure and kinematics of a major tectonic contact belt, Ontario; Canadian Journal of Earth Sciences, v. 29, pages 2118-2132. McGill, G. E., and Shrady, C. H., 1986. Evidence for a complex Archean deformational history, southwestern Michipicoten greenstone belt, Ontario; Journal of Geophysical Reports, v. 91, pages E281-E289. Mongeau, R., 1982. Geophysical Survey of the A, B, C claim group, Finan Twp, Ontario. Magino Joint Venture. Internal Report. 7 pages. Muscocho Explorations Ltd., 1987. 1986 year-end report, Magino Joint Venture Gold Project. March 1987. Muscocho Explorations Ltd. and McNellen Resources. Internal Report. 22 pages.
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Muir, T. L., 2003. Structural evolution of the Hemlo greenstone belt in the vicinity of the worldclass Hemlo gold deposit. Canadian Journal of Earth Sciences, v. 40, pages 395- 430. Nielsen, F. W., 1995. Summary and Review of Past Work and Options for Future Work, Magino Mine, Wawa Area, Ontario. Report presented to Muscocho Explorations Ltd. Prepared by R. Bruce Graham and Associates Ltd. Internal Report. 38 pages. Nielsen, F. W., 1997. Diamond Drilling Program, Magino Mine, Wawa Area, Ontario, September 1997. Report presented to Golden Goose Resources Inc. Prepared by Pearson, Hofman and Associates Ltd. Internal Report. 19 pages. Parbery, D., and Mongeau, J. 1982. Geological Survey of the A, B, C Claim Group, Finan TWP, Ontario. Magino Joint Venture. Internal Report. 6 pages. Percival, J. A., 2007. Geology and Metallogeny of the Superior Province, Canada. In Goodfellow W. D., ed., Mineral Deposits of Canada: A Synthesis of Major Deposit-Types, District Metallogeny, the Evolution of Geological Provinces, and Exploration Methods: Geological Association of Canada, Mineral Deposits Division, Special Publication No.5, p. 903-928. Pearson, Hofman and Associates Ltd., 1997. Evaluation of In-Situ Resources (“Revised”), Magino Mine Project, Wawa Area, Ontario, Internal Report, Golden Goose Resources Inc. Perkins, M. J., 1997. Report on Magino Gold Mine Property Check Sampling Program. Report presented to Golden Goose Resources Inc. Report prepared by Pearson, Hofman and Associates Ltd. Internal Report 16 pages. Perkins, M. J., 1999. Structural Geology and Gold Magino Mine Project, Wawa Area, Ontario. Report prepared for Golden Goose Resources Inc. Internal Report 9 pages. Perkins, M. J., 1999a. Report of Metallurgical Testwork Magino Mine Project, Wawa Area, Ontario. Report prepared for Golden Goose Resources Inc. Internal Report 12-pages. Peterson, V. L., and Zaleski, E., 1999. Structural history of the Manitouwadge greenstone belt and its volcanogenic Cu-Zn massive sulphide deposits, Wawa Subprovince, south- central Superior Province. Canadian Journal of Earth Sciences, v. 36, pages 605-625. Polat, A, and Kerrich, R., 1999. Formation of an Archean tectonic mélange in the Schreiber-Hemlo greenstone belt, Superior Province, Canada: Implications for Archean subductionaccretion processes. Tectonics, v. 18, p. 733-755. Polat, A., and Kerrich, R., 2001. Magnesian andesites, Nb-enriched basalts-andesites, and adakites from late Archean 2.7 Ga Wawa greenstone belts, Superior Province, Canada: Implication for late Archean subduction zone petrogenetic processes. Contribution to Mineralogy and Petrology, v. 141, pages 36-52. Polat, A., Kerrich, R., and Wyman, D., 1998. The late Archean Schreiber-Hemlo and White River-Dayohessarah greenstone belts, Superior Province: Collage of oceanic plateaus, oceanic arcs, and subduction-accretion complexes. Tectonophysics, v. 289, pages 295-326. Poulsen, K. H., 1996. Lode Gold : in Geology of Canadian Mineral Deposits Types, (ed.) O. R. Eckstrand, W. D. Sinclair, and R. I. Thorpe; Geological Survey of Canada, Geology of Canada, no 8, p. 323-328. Poulsen, K. H., Robert, F., and Dubé, B., 2000. Geological classification of Canadian gold deposits: Geological Survey of Canada, Bulletin 540, 106 pages.
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Reddick, J. R., 1996a. Geological section of the property report, BLM Bharti Engineering Limited. Internal Report. Reddick, J. R., 1996b. Overview, Recommendations, and Budgets for Magino Property, Consultants report. Reddick, J. R., 2001a. The 2000 diamond drilling and sampling program, Magino Mine Property, Wawa Ontario. Report presented to Golden Goose Resources Inc. Prepared by Reddick Consulting Inc. Internal Report. 18 pages. Reddick, J. R., 2001b. Block Model Resource Estimates for the Magino Mine Property, Wawa Ontario (Revised June 2001). Report presented to Golden Goose Resources Inc. Prepared by Reddick Consulting Inc. Report published on SEDAR website dated 15 May, 2002. 31 pages. Reddick, J. R., 2002. The 2002 diamond drilling and sampling program, Magino Mine Property, Wawa Ontario. Report presented to Golden Goose Resources Inc. Prepared by Reddick Consulting Inc. Internal Report. Ross, A.F., 2011. Mineral Resource Estimate, Magino Gold Project, Ste. Sault Marie Mining District, Ontario. Report presented to Prodigy Gold Inc. Report prepared by Snowden Mining Industry Consultants Inc. Report published on SEDAR website dated 28 February 2011. 93 pages. Ross, A.F., Finch A., Yang D., Yu F., Teh H., 2011. Magino Property Preliminary Economic Assessment Technical Report. Report presented to Prodigy Gold Inc. Report prepared by Snowden Mining Industry Consultants Inc., CWA Engineers Inc., Knight Piesold Canada. Report published on SEDAR website dated 29 March 2011. Sage, R. P., 1984. Goudreau-Lochalsh Area, District of Algoma; in Summary of Field Work and Other Activities 1984; Ontario Geological Survey, Miscellaneous Paper 119, pages 56-61. Sage, R. P., 1985. Josephine-Goudreau Area, District of Algoma; in Summary of Field Work and Other Activities 1985; Ontario Geological Survey, Miscellaneous Paper 126, pages 90-94. Sage, R. P., 1987. Preliminary interpretation of the relationship between economic mineralization and volcanic stratigraphy in the Wawa area; Ontario Geological Survey, Miscellaneous Paper 100, pages 41-44. Sage, R. P., 1987a. Geology of the Goudreau-Lochalsh and Kabenung Lake Areas, District of Algoma; in Summary of Field Work and Other Activities 1987; Ontario Geological Survey, Miscellaneous Paper 137, pages 134-137. Sage, R. P., 1990. Precambrian geology Finan Township. Ontario Geological Survey, Preliminary Map P3168, Scale 1 : 15 840. Sage, R. P., 1993. Geology of Aguonie, Bird, Finan and Jacobson townships, District of Algoma. Ontario Geological Survey, Open File Report 5588, 286 pages. Sage, R. P., 1993a. Geology of Abotossaway, Corbiere, LeClaire and Musquash and part of Dunphy township. Ontario Geological Survey, Open File Report 5587, 308 pages. Sage, R. P., 1993b. Precambrian geology Aguonie Township. Ontario Geological Survey, Open File Map 217, Scale 1: 15 840. Sage, R. P., 1993c. Precambrian geology Abotossaway Township. Ontario Geological Survey, Open File Map 223, Scale 1: 15 840.
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Sage, R. P., 1993d. Precambrian geology Dunphy Township. Ontario Geological Survey, Open File Map 224, Scale 1: 15 840. Sage, R. P., 1994. Geology of the Michipicoten greenstone belt. Ontario Geological Survey, Open File Report 5888, 592 pages. Sage, R. P., Lightfoot, P. C., and Doherty, W., 1996a. Bimodal cyclical Archean basalts and rhyolites from the Michipicoten(Wawa) greenstone belt, Ontario: Geochemical evidence for magma contributions from asthenospheric mantle and ancient continental lithosphere near southern margin of the Superior Province. Precambrian Research, v. 76, page 119-153. Sage, R. P., Lightfoot, P. C., and Doherty, W., 1996b. Geochemical characteristics of granitoid rocks from within Archean Michipicoten greenstone belt, Wawa Subprovince, Superior Province, Canada: Implications for source regions and tectonic evolution. Precambrian Research, v. 76, page 155-190. Simpson, M. 2011. Specific Gravity Sampling Program. Internal report prepared for Prodigy Gold Incorporated. 151 pages. Stott, G.M., Buse, S and Préfontaine, S., 2007. A possible Mesoarchean Anticlinorium in the Berens River Region and its Tectonic Significance. Summary of Field Work and Other Activities 2007, Ontario Geological Survey, Open File Report 6213, pages 38-1 to 38-5. Studemeister, P. A., 1983. The greenschist facies of an Archean assemblage near Wawa, Ontario. Canadian Journal of Earth Sciences, v. 20, pages 1409-1420. Studemeister, P. A., 1985. Gold-bearing veins around a felsic stock near Wawa, Ontario: implications for gold exploration; Canadian Institute of Mining and Metallurgy Bulletin, v. 78, pages 43-47. Studemeister, P. A., and Kilias, S., 1987. Alteration pattern and fluid inclusions of gold-bearing quartz veins in Archean trondhjemite near Wawa, Ontario, Canada Economic Geology, v. 82. pages 429-439. Sutherland, K. S., 1987. Report on the Magino Gold Project. Report commissioned by Muscocho Explorations Ltd. Queen’s University, Kingston, Ontario. Internal Report. 60 pages. Turcotte, B., and Pelletier, C., 2008. Technical Report and Mineral Resource Estimate for the Magino Mine (according to the Regulation 43-101 and Form 43-101F1). Report prepared by InnovExplo for Golden Goose Resources Inc. Report published on SEDAR website dated 3 July, 2008. 85 pages. Turcotte, B., and Pelletier, C., 2009. Technical Report and Mineral Resource Estimate for the Magino Mine (according to Regulation 43-101 and 43-101F1). Report prepared by InnovExplo for Golden Goose Resources Inc. Report published on SEDAR website dated 29 May, 2009. 116 pages. Turcotte, B., Pelletier, C., and Poirier S., 2010. Technical Report on the Preliminary Economic Assessment prepared by InnovExplo for Golden Goose Resources Inc. Unpublished draft report dated 3 June, 2010. Internal Report, Golden Goose Resources Inc. 176 pages. Yong, P., Verma, N. S., and Dyck, D., 2008. Magino Mine tailings containment area dam safety inspection 2007. Submitted by AMEC Earth & Environmental. 10 pages. Young, R. and Simms, D. 1992. Magino Mine Closure Plan – Muscocho Explorations Limited. October 1992. Prepared by Environmental Applications Group Limited. 60 pages, plans and appendices.
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Young, R. and Simms, D. 1993. Magino Mine Closure Plan – Muscocho Explorations Limited- Revised January 1993. Prepared by HBT AGRA Limited (TC 630). 72 pages, appendices and maps in pocket. Waldie, C., 2006. Report on the 2006 Diamond Drilling Program, Magino Mine Property, Wawa, Ontario, Canada. Golden Goose Resources Inc. Internal Report. 45 pages. Williams, H. R., Scott, G. M., Heather, K. B., Muir, T. L., and Sage, R. P., 1991. Wawa Subprovince; in Geology of Ontario, (eds.) P. C. Thurston, H. R. Williams, R. H., Sutcliffe, and G. M. Scott; Ontario Geological Survey, Special Paper 4, pt.1, pages 485-539. Wilson, B. C., 1997. Structural Geology and Gold on the Magino Mine Property. Report prepared for Golden Goose Resources Inc. Internal Report. 21 pages. Zaleski, E., van Breemen, O., and Peterson, V. L., 1999. Geological evolution of the Manitouwadge greenstone belt and Wawa-Quetico subprovince boundary, Superior Province, Ontario: Constrained by U-Pb zircon dates of supracrustal and plutonic rocks. Canadian Journal of Earth Sciences, v.36, pages 945-966.
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20 Certificate of author, date and signature page (a) I, Andrew F. Ross, Senior Principal Consultant of Snowden Mining Industry Consultants Inc., 600 -1090 W. Pender St., Vancouver; do hereby certify that: (b) I am the author of “Mineral Resource Estimate Update, Magino Gold Project, Ste. Sault Marie Mining District, Ontario”, dated 2 November 2011 (the ‘Report’) prepared for Prodigy Gold Incorporated. (c) I graduated with an BSc Honours Degree in Geology from the University of Adelaide in 1972. In 1985 I graduated with a MSc degree in Mining and Exploration Geology from James Cook University of North Queensland. I am: a Fellow and Chartered Professional of the Australasian Institute of Mining and Metallurgy; a member of the Australian Institute of Geoscientists; licensed as a Professional Geoscientist with APEG (British Columbia). I have worked as a geologist continuously for a total of 39 years since graduation. I have been involved in resource evaluation consulting for 16 years, including resource estimation of primary gold deposits for at least 5 years. I have been involved in gold exploration and mining operations for at least 5 years. I have read the definition of ‘qualified person’ set out in NI 43-101 (‘the Instrument’) and certify that by reason of my education, affiliation with a professional association and past relevant work experience, I fulfill the requirements of a ‘qualified person’ for the purposes of the Instrument. (d) I visited the Magino property from 23 February to 24 February, 2011 and from 1 August to 3 August 2011. (e) I am responsible for the preparation of the Report. (f) I am independent of the issuer as defined in section 1.4 of the Instrument. (g) I have had prior involvement with the property that is the subject of the Report. I reviewed the technical report prepared by Burns & Reddick (Snowden, 2004); and authored technical reports in February and March 2011. (h) I have read the Instrument and Form 43-101F1, and the Report has been prepared in compliance with that instrument and form. (i) As of the date of this certificate, to the best of my knowledge, information and belief, the Report contains all the scientific and technical information that is required to be disclosed to make the Report not misleading. (j) I consent to the filing of the Report with any stock exchange or any regulatory authority and any publication by them, including electronic publication in the public company files on their websites accessible by the public, of the Report.
Dated at Perth, Australia this 14th Day of December, 2011.
[signed]
Andrew F. Ross
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