Preliminary Economic Assessment
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PRELIMINARY ECONOMIC ASSESSMENT on the Bralorne Gold Mines Property Gold Bridge British Columbia Canada Prepared for Bralorne Gold Mines Ltd. Vancouver, B.C. By Beacon Hill Consultants (1988) Ltd. Report Date October 15, 2012 Effective date October 15, 2012 Amended date November 20, 2012 Bralorne Gold Mines Ltd. Bralorne Mine - PEA TABLE OF CONTENTS SECTION 1.0 SUMMARY ................................................................................................................................. 1-1 1.1 OVERVIEW ............................................................................................................................................... 1-1 1.2 PURPOSE OF REPORT .................................................................................................................................... 1-1 1.2.1 Present Operations ............................................................................................................................ 1-2 1.3 INTRODUCTION ....................................................................................................................................... 1-3 1.4 RESOURCES .............................................................................................................................................. 1-3 1.5 REVIEW OF PRESENT OPERATIONS .................................................................................................... 1-5 1.6 CAPITAL COSTS ....................................................................................................................................... 1-8 1.7 OPERATING COSTS ................................................................................................................................. 1-8 1.8 FINANCIAL ANALYSIS ........................................................................................................................... 1-9 1.8.1 Present Operations ............................................................................................................................ 1-9 1.8.2 Results .............................................................................................................................................. 1-12 1.9 CONCLUSIONS ....................................................................................................................................... 1-12 1.10 RECOMMENDATIONS ...................................................................................................................... 1-13 SECTION 2.0 INTRODUCTION ....................................................................................................................... 2-1 2.1 SCOPE OF WORK .......................................................................................................................................... 2-1 2.2 TEAM ........................................................................................................................................................... 2-1 2.3 ACKNOWLEDGEMENTS ................................................................................................................................. 2-1 2.4 DISCUSSION ................................................................................................................................................. 2-1 SECTION 3.0 RELIANCE ON OTHER EXPERTS ........................................................................................ 3-1 SECTION 4.0 PROPERTY DESCRIPTION AND LOCATION .................................................................... 4-1 4.1 INTRODUCTION ....................................................................................................................................... 4-1 4.2 LOCATION ................................................................................................................................................ 4-1 4.3 CLAIMS ...................................................................................................................................................... 4-3 4.3.1 List of Claims ..................................................................................................................................... 4-1 SECTION 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOLOGRAPHY ............................................................................................................................................. 5-1 5.1 ACCESSIBILITY ....................................................................................................................................... 5-1 SECTION 6.0 HISTORY .................................................................................................................................... 6-1 6.1 EARLY HISTORY AND PRODUCTION .................................................................................................. 6-1 6.2 WORK AFTER MINE CLOSURE ............................................................................................................. 6-1 6.2.1 Taylor-Bridge - Peter Vein Area ........................................................................................................ 6-1 6.2.2 Bralorne-Pioneer Area ...................................................................................................................... 6-2 SECTION 7.0 GEOLOGY SETTING AND MINERALIZATION ................................................................ 7-1 7.1 REGIONAL GEOLOGY ............................................................................................................................ 7-1 7.2 LOCAL AND PROPERTY GEOLOGY ..................................................................................................... 7-2 7.3 MINERALIZATION................................................................................................................................... 7-8 SECTION 8.0 DEPOSIT TYPES ....................................................................................................................... 8-1 SECTION 9.0 EXPLORATION ......................................................................................................................... 9-1 9.1 2009 PROGRAM ........................................................................................................................................ 9-2 9.2 2010 PROGRAM ........................................................................................................................................ 9-3 9.3 2011 PROGRAM ........................................................................................................................................ 9-3 9.4 MINE SAMPLING METHODS ................................................................................................................. 9-6 9.5 2012 PROGRAM AND PLANS .................................................................................................................. 9-6 SECTION 10.0 DRILLING ............................................................................................................................ 10-1 Beacon Hill Consultants (1988) Ltd. November 2012 Bralorne Gold Mines Ltd. Bralorne Mine - PEA 10.1 2009 SURFACE DRILL PROGRAM .................................................................................................. 10-1 10.1.1 Results for BK Structure ............................................................................................................. 10-4 10.1.2 Results for Alhambra Structure ................................................................................................... 10-4 10.1.3 Results for Parallel Veins ........................................................................................................... 10-4 10.2 2010 SURFACE DRILLING ................................................................................................................ 10-5 10.2.1 Results for BK Structure ............................................................................................................. 10-6 10.3 2011 SURFACE DRILL PROGRAM .................................................................................................. 10-7 10.3.1 Results for BK Structure ............................................................................................................. 10-8 10.4 UNDERGROUND DRILLING (2011-CURRENT) .......................................................................... 10-11 10.4.1 Results for Underground Drilling ............................................................................................. 10-14 SECTION 11.0 SAMPLE PREPARATION, ANALYSIS AND SECURITY ............................................ 11-1 11.1 DRILL CORE SAMPLING .................................................................................................................. 11-1 11.2 ASSAY QUALITY ASSURANCE /QUALITY CONTROL ............................................................... 11-2 11.2.1 Drill Core QA/QC ....................................................................................................................... 11-2 11.2.2 Mine Sample QA/QC ................................................................................................................... 11-3 SECTION 12.0 DATA VERIFICATION ...................................................................................................... 12-1 SECTION 13.0 MINERAL PROCESSING AND METALLURGICAL TESTING ................................ 13-1 SECTION 14.0 MINERAL RESOURCE ESTIMATES ............................................................................