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Eagle's Nest Pre-Feasibility Study

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Eagle's Nest Pre-Feasibility Study NORONT RESOURCES LTD. NI 43-101 TECHNICAL REPORT PRE-FEASIBILITY STUDY McFAULDS LAKE PROPERTY EAGLE’S NEST PROJECT JAMES BAY LOWLANDS ONTARIO, CANADA Effective Date: August 23, 2011 Signing Date: October 6, 2011 Harry Burgess, P.Eng. Richard Gowans, P.Eng. Christopher Jacobs, C.Eng., MIMMM Charley Murahwi, M.Sc., P.Geo., MAusIMM SUITE 900 - 390 BAY STREET, TORONTO ONTARIO, CANADA M5H 2Y2 Telephone (1) (416) 362-5135 Fax (1) (416) 362 5763 Table of Contents Page 1.0 SUMMARY .................................................................................................................... 1 1.1 INTRODUCTION ....................................................................................................... 1 1.2 PROPERTY DESCRIPTION ...................................................................................... 1 1.3 HISTORY .................................................................................................................... 2 1.4 GEOLOGY AND MINERALIZATION ..................................................................... 3 1.5 EXPLORATION AND OTHER PROGRAMS .......................................................... 3 1.6 MINERAL RESOURCE ESTIMATE ......................................................................... 3 1.7 MINERAL RESERVE ESTIMATE ............................................................................ 4 1.8 MINING METHODS .................................................................................................. 4 1.9 METALLURGICAL TESTING AND PROCESS RECOVERY METHODS .................................................................................................................. 6 1.10 PROJECT INFRASTRUCTURE ................................................................................ 6 1.11 ENVIRONMENTAL STUDIES ................................................................................. 7 1.12 PROJECT IMPLEMENTATION ................................................................................ 7 1.13 CAPITAL COSTS ....................................................................................................... 7 1.14 OPERATING COSTS ................................................................................................. 7 1.15 ECONOMIC ANALYSIS ........................................................................................... 8 1.16 CONCLUSIONS ....................................................................................................... 11 1.17 RECOMMENDATIONS ........................................................................................... 13 2.0 INTRODUCTION........................................................................................................ 15 2.1 PREVIOUS TECHNICAL REPORTS ...................................................................... 16 2.2 TERMS OF REFERENCE ........................................................................................ 17 2.2.1 Qualified Persons ............................................................................................... 19 2.2.2 Site Visits ........................................................................................................... 19 2.2.3 Use of Report ..................................................................................................... 19 2.3 SOURCES OF INFORMATION .............................................................................. 19 2.4 UNITS AND CURRENCY ....................................................................................... 19 3.0 RELIANCE ON OTHER EXPERTS......................................................................... 24 4.0 PROPERTY DESCRIPTION AND LOCATION .................................................... 25 4.1 LOCATION ............................................................................................................... 25 4.2 CLAIMS .................................................................................................................... 26 4.3 ENVIRONMENTAL PERMITTING, MANAGEMENT AND SOCIO- ECONOMIC CONSIDERATIONS .......................................................................... 35 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTUREAND PHYSIOGRAPHY ........................................................ 36 5.1 ACCESS .................................................................................................................... 36 5.2 CLIMATE AND PHYSIOGRAPHY ........................................................................ 36 5.3 INFRASTRUCTURE ................................................................................................ 37 5.4 FLORA AND FAUNA .............................................................................................. 37 i 6.0 HISTORY ..................................................................................................................... 38 7.0 GEOLOGICAL SETTING AND MINERALIZATION .......................................... 40 7.1 REGIONAL GEOLOGY ........................................................................................... 40 7.2 LOCAL GEOLOGY .................................................................................................. 41 7.3 LOCAL DEPOSITS AND MINERAL OCCURRENCES ....................................... 42 7.3.1 Eagle’s Nest Deposit .......................................................................................... 42 7.3.2 Blackbird Deposit .............................................................................................. 43 7.3.3 Triple J Gold Mineral Occurrence ..................................................................... 43 7.3.4 AT12 Nickel-Copper Mineral Occurrence ........................................................ 43 7.3.5 Thunderbird Vanadium-Titanium-Iron Mineral Occurrence ............................. 43 7.4 MINERALIZATION ................................................................................................. 44 7.5 MASSIVE SULPHIDES ........................................................................................... 44 7.6 NET-TEXTURED AND DISSEMINATED SULPHIDES ...................................... 44 8.0 DEPOSIT TYPES ........................................................................................................ 45 9.0 EXPLORATION .......................................................................................................... 46 9.1 AIRBORNE GEOPHYSICS ..................................................................................... 46 9.1.1 2003 Fugro Airborne Survey ............................................................................. 46 9.1.2 2007 Noront AeroTEM III Helicopter Survey................................................... 47 9.1.3 2008 VTEM Airborne Survey ........................................................................... 47 9.1.4 2009 Gravity Gradiometry Airborne Survey ..................................................... 47 9.1.5 2009 Z-Axis tripper Electromagnetic Geophysical Survey – Airborne Survey ................................................................................................................ 48 9.1.6 2009 High Resolution Aeromagnetic Gradient and VLF-EM Airborne Surveys ............................................................................................... 48 9.2 GROUND GEOPHYSICS ......................................................................................... 48 9.3 2004 GROUND MAGNETIC AND HORIZONTAL LOOP EM SURVEY ................................................................................................................... 49 9.3.1 2006 Condor Diamond Corp. In-fill Ground Magnetic Survey ......................... 49 9.3.2 2007 Magnetics, HLEM and Gravity Surveys over Eagle’s Nest Deposit ............................................................................................................... 49 9.3.3 2007 Gravity Survey .......................................................................................... 49 9.3.4 2008 Magnetic, VLF, HLEM, Gravity and Large Loop TDEM Surveys .............................................................................................................. 50 9.3.5 2010 Surface EM – Crone SQUID system ........................................................ 50 9.3.6 2010 Surface EM – Lamontagne UTEM system ............................................... 50 9.4 DIAMOND DRILLING ............................................................................................ 51 9.4.1 2006 Probe Diamond Drill Program .................................................................. 51 9.4.2 2007 and 2008 Noront Diamond Drill Program ................................................ 51 9.4.3 2009 Noront Diamond Drill Program ................................................................ 51 9.4.4 2010 Noront Diamond Drilling Program ........................................................... 51 9.4.5 2011 Noront Diamond Drilling Program ........................................................... 51 9.5 OTHER EXPLORATION WORK ............................................................................ 51 9.5.1 2008 Drill Hole IP Surveys ................................................................................ 51 ii 9.5.2 2009 to Present Drill Hole EM Surveys ............................................................ 52 9.6 RESULTS OF FIELD PROGRAMS ......................................................................... 52 9.6.1 Eagle’s Nest Deposit .........................................................................................
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