Goldquest Mining Corporation

GOLDQUEST MINING CORPORATION MINERAL RESOURCE ESTIMATE FOR LA ESCANDALOSA PROJECT, PROVINCE OF SAN JUAN, DOMINICAN REPUBLIC NI 43-101 TECHNICAL REPORT Prepared By Jonathan Steedman, MAusIMM (CP) Richard M. Gowans, P.Eng Micon International Co Limited Suite 10 Keswick Hall, Norwich, NR4 6TJ, United Kingdom 14th August 2012 La Escandalosa Project TABLE OF CONTENTS Page 1.0 SUMMARY ................................................................................................................... 6 1.1 INTRODUCTION ..................................................................................................... 6 1.2 PROPERTY DESCRIPTION AND LOCATION ..................................................... 6 1.3 GEOLOGY AND MINERALISATION ................................................................... 7 1.4 DRILLING AND SAMPLING.................................................................................. 7 1.5 MINERAL PROCESSING AND METALLURGICAL TESTING ......................... 7 1.6 RESOURCES ............................................................................................................ 8 1.7 INTERPRETATION AND CONCLUSIONS ........................................................... 9 1.8 RECOMMENDATIONS ........................................................................................... 9 2.0 INTRODUCTION ....................................................................................................... 11 2.1 TERMS OF REFERENCE AND PURPOSE OF THE TECHNICAL REPORT ... 11 2.2 QUALIFICATIONS OF THE CONSULTANTS ................................................... 12 2.2.1 General ................................................................................................................. 12 2.2.2 Micon Qualifications ........................................................................................... 12 2.3 UNITS OF MEASURE............................................................................................ 13 3.0 RELIANCE ON OTHER EXPERTS .......................................................................... 15 4.0 PROPERTY DESCRIPTION AND LOCATION ....................................................... 16 4.1 PROPERTY LOCATION ........................................................................................ 16 4.2 PROPERTY DESCRIPTION .................................................................................. 16 4.2.1 Property Status ..................................................................................................... 16 4.2.2 Property Legal History ......................................................................................... 19 4.3 DOMINICAN REPUBLIC MINING LAW ............................................................ 21 4.4 ENVIRONMENTAL REGULATIONS AND LIABILITIES ................................ 22 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ................................................................................................................... 24 5.1 ACCESSIBILITY .................................................................................................... 24 5.2 CLIMATE ................................................................................................................ 25 5.3 LOCAL RESOURCES AND INFRASTRUCTURE .............................................. 27 5.4 PHYSIOGRAPHY ................................................................................................... 28 6.0 HISTORY .................................................................................................................... 29 6.1 HISTORICAL MINING .......................................................................................... 29 6.2 EXPLORATION IN THE 1960’S AND 1970’S ..................................................... 30 6.3 SYSMIN REGIONAL SURVEYS IN THE 2000’S ............................................... 30 6.4 EXPLORATION BY GOLDQUEST ...................................................................... 30 7.0 GEOLOGICAL SETTING AND MINERALISATION ............................................. 31 7.1 REGIONAL GEOLOGY ......................................................................................... 31 GoldQuest Mining Corporation i August 2012 La Escandalosa Project 7.2 PROJECT GEOLOGY ............................................................................................ 33 7.2.1 Lithological Units ................................................................................................ 35 7.2.2 Structure ............................................................................................................... 38 7.2.3 Alteration and Mineralisation .............................................................................. 38 7.2.4 Geomorphology and Overburden ........................................................................ 41 7.3 MINERALISATION ............................................................................................... 42 8.0 DEPOSIT TYPES ........................................................................................................ 44 9.0 EXPLORATION.......................................................................................................... 46 9.1 TOPOGRAPHY AND IMAGERY ......................................................................... 46 9.2 GEOLOGICAL MAPPING ..................................................................................... 46 9.3 GEOCHEMISTRY .................................................................................................. 46 9.4 GEOPHYSICS ......................................................................................................... 46 9.5 SUMMARY OF EXPLORATION RESULTS ....................................................... 47 10.0 DRILLING ................................................................................................................... 51 11.0 SAMPLE PREPARATION, ANALYSES AND SECURITY .................................... 61 11.1 SAMPLING METHOD AND APPROACH ........................................................... 61 11.2 SAMPLE SECURITY AND CHAIN OF CUSTODY ............................................ 61 11.3 SAMPLE PREPARATION ..................................................................................... 62 11.4 SAMPLE ANALYSIS ............................................................................................. 63 11.5 QUALITY ASSURANCE / QUALITY CONTROL (QA/QC) .............................. 63 11.5.1 Certified Standard Reference Materials ........................................................... 64 11.5.2 Blank Assays .................................................................................................... 67 11.5.3 Core Duplicates ................................................................................................ 68 11.5.4 External Laboratory Repeats ............................................................................ 69 11.6 SPECIFIC GRAVITY ............................................................................................. 70 11.7 DATABASE ............................................................................................................ 70 11.8 MICON COMMENTS............................................................................................. 71 12.0 DATA VERIFICATION ............................................................................................. 72 13.0 MINERAL PROCESSING AND METALLURGICAL TESTING ........................... 73 13.1 METALLURGICAL TESTWORK ......................................................................... 73 13.1.1 Sample Characterization .................................................................................. 73 13.1.2 Gravity Concentration and Cyanide Leaching ................................................. 74 13.1.3 Flotation ........................................................................................................... 74 13.2 RECOMMENDATIONS ......................................................................................... 75 14.0 MINERAL RESOURCE ESTIMATE ......................................................................... 76 14.1 STATISTICAL ANALYSIS ................................................................................... 79 14.2 BLOCK MODEL ..................................................................................................... 80 14.2.1 Grade Interpolation .......................................................................................... 81 GoldQuest Mining Corporation ii August 2012 La Escandalosa Project 14.2.2 Block-model Validation ................................................................................... 83 14.3 MINERAL RESOURCE ESTIMATE ..................................................................... 83 15.0 MINERAL RESERVE ESTIMATES.......................................................................... 85 16.0 ADJACENT PROPERTIES ........................................................................................ 86 17.0 OTHER RELEVANT DATA AND INFORMATION ............................................... 87 18.0 INTERPRETATION AND CONCLUSIONS ............................................................. 88 19.0 RECOMMENDATIONS ............................................................................................. 89 20.0 DATE AND SIGNATURE PAGE .............................................................................. 90 21.0 CERTIFICATES .........................................................................................................

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