Technical Report on the Enchi Gold Project, Ghana
June 15, 2010
Prepared for: Edgewater Exploration Ltd. Suite 1250 – 999 W. Hastings Street Vancouver, B. C., V6C 2W2
Prepared by:
Wardrop Engineering Inc. 330 Bay Street, Suite 900 Toronto, Ontario, M5H 2S8
Todd McCracken, P. Geo. Principal Geologist
Report to:
EDGEWATER EXPLORATION LTD.
Technical Report on the Enchi Gold Project, Ghana
Document No. 1054420100-REP-R0001-03
Report to:
EDGEWATER EXPLORATION INC.
TECHNICAL REPORT ON THE ENCHI GOLD PROJECT, GHANA
JUNE 2010
Prepared by “Original document, version 03, signed by Todd McCracken, P. Geo.” Date June 15, 2010 Todd McCracken, P. Geo.
Reviewed by “Original document, version 03, signed by Jeff Wilson, P. Geo.” Date June 15, 2010 Jeff Wilson, P. Geo.
Authorized by “Original document, version 03, signed by Paul Gribble, FIMMM, C. Eng.” Date June 15, 2010 Paul Gribble, FIMMM, C. Eng. PG/vc
330 Bay Street, Suite 900, Toronto, Ontario M5H 2S8 Phone: 416-368-9080 Fax: 416-368-1963
REVISION HISTORY
REV. PREPARED BY REVIEWED BY APPROVED BY NO ISSUE DATE AND DATE AND DATE AND DATE DESCRIPTION OF REVISION 00 2010/04/23 Todd McCracken Jeff Wilson Paul Gribble Draft to Client 01 2010/04/30 Todd McCracken Jeff Wilson Paul Gribble Draft to Client 02 2010/05/05 Todd McCracken Jeff Wilson Paul Gribble Final Report 03 2010/06/15 Todd McCracken Jeff Wilson Paul Gribble Final Report – changed from TSX
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TABLE OF CONTENTS
1.0 SUMMARY ...... 1 1.1 GEOLOGY ...... 1 1.2 CONCLUSIONS ...... 2 1.3 RECOMMENDATIONS ...... 2 1.3.1 BOIN AND NYAMEBEKYERE RESOURCE DELINEATION ...... 3 1.3.2 ENCHI REGIONAL EXPLORATION AND TARGET GENERATION ...... 3 2.0 INTRODUCTION ...... 4
3.0 RELIANCE ON OTHER EXPERTS ...... 5
4.0 PROPERTY DESCRIPTION AND LOCATION ...... 6
5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ...... 11 5.1 SITE TOPOGRAPHY, ELEVATION, AND VEGETATION ...... 11 5.2 ACCESS ...... 11 5.3 CLIMATE ...... 11 5.4 INFRASTRUCTURE ...... 12 6.0 HISTORY ...... 13
7.0 GEOLOGICAL SETTING ...... 15 7.1 REGIONAL GEOLOGICAL SETTING ...... 15 7.2 LOCAL GEOLOGY ...... 17 7.2.1 BOIN GOLD ZONE GEOLOGY ...... 19 7.2.2 SEWUM GOLD PROSPECTS GEOLOGY ...... 19 8.0 DEPOSIT TYPE...... 22
9.0 MINERALIZATION ...... 23 9.1 BOIN ZONE ...... 25 9.2 SEWUM MINE ...... 26 9.3 TOKOSEA MINE ...... 26 9.4 SEWUM WEST ...... 27 9.5 SEWUM SOUTH ...... 27 9.6 SEWUM VILLAGE ...... 28 9.7 ACHIMFU ...... 29 9.8 NKWANTA ...... 29
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9.9 TOKOSEA SOUTH ...... 29 9.10 ADAMANSU ...... 29 9.11 NYAMEBEKYERE ...... 29 9.12 KWAKYEKROM ...... 30 9.13 BEEKOKROM ...... 31 9.14 KOJINA HILL ...... 31 9.15 ALATAKROM ...... 31 9.16 ERADI ...... 32 10.0 EXPLORATION ...... 34
11.0 DRILLING ...... 35
12.0 SAMPLING METHOD AND APPROACH ...... 36
13.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY ...... 37 13.1 EDGEWATER ...... 37 13.2 RED BACK ...... 37 14.0 DATA VERIFICATION ...... 41 14.1 EDGEWATER ...... 41 14.2 RED BACK ...... 41 15.0 ADJACENT PROPERTIES ...... 45
16.0 MINERAL PROCESSING AND METALLURGICAL TESTING ...... 46
17.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ...... 47
18.0 OTHER RELEVANT DATA AND INFORMATION ...... 48
19.0 INTERPRETATION AND CONCLUSIONS ...... 49
20.0 RECOMMENDATIONS ...... 51 20.1 EXPLORATION RECOMMENDATIONS ...... 51 20.1.1 BOIN AND NYAMEBEKYERE RESOURCE DELINEATION ...... 51 20.1.2 ENCHI REGIONAL EXPLORATION AND TARGET GENERATION ...... 52 20.2 OTHER RECOMMENDATIONS ...... 53 21.0 REFERENCES ...... 55
22.0 CERTIFICATE OF QUALIFIED PERSON ...... 56 22.1 CERTIFICATE OF TODD MCCRACKEN, P. GEO...... 56
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LIST OF TABLES
Table 4.1 Enchi License Status...... 9 Table 6.1 History of Exploration Activities for the Enchi Licence Area ...... 14 Table 9.1 Boin Zone RC Drill Summary ...... 25 Table 9.2 Sewum Mine RC Drill Summary ...... 26 Table 9.3 Tokosea Mine RC Drill Summary ...... 27 Table 9.4 Sewum West RC Drill Summary ...... 27 Table 9.5 Sewum South RC Drill Summary ...... 28 Table 9.6 Sewum Village Trench Summary ...... 28 Table 9.7 Achimfu RC Drill Summary ...... 29 Table 9.8 Nyamebekyere RC Drill Summary ...... 30 Table 9.9 Kwakyekrom RC Drill Summary ...... 30 Table 9.10 Kojina Hill RC Drill Summary ...... 31 Table 9.11 Alatakrom RC Drill Summary ...... 31 Table 9.12 Eradi Trench Summary ...... 32 Table 14.1 Validation of Red Back RC Drill Collars ...... 43 Table 20.1 Boin and Nyamebekyere Drill Budget ...... 52 Table 20.2 Enchi Soil Survey Budget ...... 53
LIST OF FIGURES
Figure 4.1 Location Map ...... 7 Figure 4.2 License Map ...... 8 Figure 7.1 Regional Geology ...... 16 Figure 7.2 Local Geology ...... 18 Figure 9.1 Prospect Location Map ...... 24 Figure 9.2 Eradi Gold Target ...... 33 Figure 13.1 Chip Boards ...... 37 Figure 13.2 Chip Board ...... 38 Figure 13.3 Pulp Boxes ...... 38 Figure 13.4 Pulp Boxes ...... 39 Figure 13.5 Drill Core ...... 40 Figure 14.1 Wardrop Check Pulp Assays versus Red Back Original Assays ...... 44
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1.0 SUMMARY
The Enchi Project (the Project) is located in south-western Ghana, in a region well known for prolific gold production, and hosts numerous historical and current operating mines located along strike to the northeast of the Project. In 2009, Ghana was the second largest gold producer in Africa at 2.9 million ounces (Moz). The Project covers a 40 kilometre (km) strike length of the Bibiani Shear Zone (BMZ) along the eastern margin of the Sefwi Belt stretching from the Cote d'Ivoire border in the southwest to the southern margin of the Suhuma Forest Reserve, to the northeast. The Bibiani Shear is known to host significantly large lode-gold deposits, such as the Bibiani (5 Moz historical production) and Chirano (183,000 oz production in 2009) deposits.
The Project is located 290 km west of the capital of Accra and 70 km southwest of the Chirano Gold Mine operated by Red Back Mining Inc. (“Red Back”). The project is centered on 5°47’N latitude and 2°42’ W longitude.
In March 2010,Wardrop, a Tetra Tech Company, (Wardrop) was commissioned by Featherstone Capital Advisors Inc. (Featherstone) to complete a technical review of the Enchi Gold Project located in Southwest Ghana as part of a due diligence study, on Red Back’s Project. This report is to comply with disclosure and reporting requirements set forth in National Instrument 43-101 (NI 43-101) Standards of disclosure for Mineral Projects, Companion Policy 43-101CP to NI 43-101, and Form 43-101F of NI 43-101.
The Project area is comprised of eight licenses totalling 568 square kilometres (km2) held 90% by Red Back and 10% by the Government of Ghana. Featherstone has a Letter of Intent (LOI) dated February 24th, 2010 defining the terms of an Option-Joint Venture agreement with Red Back, whereby Featherstone can earn 51% interest in Red Back’s ownership interest in the Enchi Project. Featherstone has executed an Assignment Agreement with Edgewater Exploration Ltd. (“Edgewater”) dated April 27th , 2010 whereby Edgewater will assume all right, title interest and obligations in the Featherstone LOI with Red Back in exchange for a Finders Fee. Edgewater has executed a definitive Option Agreement with Red Back dated May 5, 2010.
1.1 G EOLOGY
The Project is situated on the contact between the Sefwi Belt to the west, and the Kumasi Basin to the east. The Sefwi Belt is dominated by mafic volcanics, metasediments and intrusive granitoids. The Kumasi basin contains wide basins of marine clastic sediments. All of the rocks in the region have been extensively metamorphosed to greenschist facies.
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Extensive faulting, on local and regional scales, occurs along the margins of the volcanic-sediments belts. These northeast-trending structures are fundamentally important in the development of gold deposits for the region. The major shear system within the Enchi concession is located at the boundary of the Sefwi Belt and Kumasi basin is called the Bibiani Shear Zone. Gold deposits are typically located in third order structures or splays off the second order structures.
The Enchi Project contains mineralized zones that are characteristic of mesothermal quartz vein style gold deposits. This type of mineralization is the most important type of gold occurring within West Africa, and is commonly referred to as the Ashanti-type.
Mineralization can occur as both refractory and non-refractory styles. Refractory mineralization is characterized by early-stage disseminated sulphides of primarily pyrite and/or arsenopyrite, hosting significant gold content, which is overprinted by late-stage quartz veining with minor amounts of visible gold and accessory polymetallic sulphides. Non-refractory ore is described as gold not hosted within sulphide minerals of either the early or late stage mineralization events.
Extensive exploration has been conducted at Enchi by various operators in the past. Red Back has consolidated the land package and has successfully compiled most of the historic data available. Besides sporadic small-scale mines that operated in the past, there is no history of mining operations in the project area. Widespread soil sampling and other regional-scale exploration techniques have been used in the past. Rotary Air Blast (RAB) and Recirculation (RC) drill programs have delineated several gold prospects.
1.2 C ONCLUSIONS
The Enchi Project comprises a land package with a strike-length of over 40 km along the Birimian-aged Bibiani Shear Zone, south-west Ghana. The Bibiani Shear is known to host significantly large lode-gold deposits, such as the Bibiani and Chirano deposits. The geological dataset primarily generated by Red Back consisting of data derived from soil surveys, stream sediment sampling, airborne geophysics, remote sensing, trenching, rock chip samples, RAB drilling and RC drilling is deemed to be suitable for use in future exploration programs and interpretation after complete validation of the data.
1.3 R ECOMMENDATIONS
Exploration on the Project is proposed as two separate programs, which are independent of each other and can be run concurrently, as the results of one program does not affect the work proposed in the second program.
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1.3.1 BOIN AND NYAMEBEKYERE RESOURCE DELINEATION
In order to upgrade the Boin and Nyamebekyere Zones to allow for the generation of a NI 43-101 Compliant Resource Statement, a delineation diamond drilling and RC program is proposed.
Both prospects are open along strike and down dip of the current drilling. The RC programs are designed to extend the potential resource along strike while the diamond drill programs are used to validate the existing RC results and to provide geological and structural data. The proposed budget for the drilling program is US$1.74 million.
1.3.2 ENCHI REGIONAL EXPLORATION AND TARGET GENERATION
Extension of the detailed soil grid to the east of the Boin Zone and north of the Sewum prospect is recommended. This would allow for the collection of geochemical data that targets the highly prospective structural boundary between the volcanic and sediments as well as the across the Nyamebekyere Shear.
In addition to the soil sampling, a geological mapping program should be conducted in order to map out the regolith of the region as well as detailed mapping of any outcrop that may be encountered. Upon completion of the soil and mapping programs, the compilation and review of all the data should be under taken to prioritize future exploration targets.
The proposed budget to complete the soil survey and mapping program is US$0.26 million.
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2.0 INTRODUCTION
The Enchi Project is located in south western Ghana within Birimian aged rocks of the Sefwi volcanic and Kumasi sediments. The region is well known as a prolific gold producing camp, hosting numerous historical and current operating mines along strike to the northeast.
In March 2010, Wardrop was commissioned by Featherstone to complete a due diligence study on the Red Back Enchi Gold Project located in Ghana, West Africa. Featherstone has executed an Assignment Agreement with Edgewater dated April 27th, 2010 whereby Edgewater will assume all right, title interest and obligations in the Featherstone LOI with Red Back in exchange for a Finder’s Fee. Edgewater has executed a definitive Option Agreement with Red Back dated May 5, 2010.
The objective of the study is to:
• complete a NI 43-101 Compliant Technical Report on the project including summarizing all land tenures, exploration history, soil geochemistry, trenching, geophysics, and RC and RAB drilling • provide recommendations and budget for additional work on the Project.
This report is to comply with disclosure and reporting requirements set forth in NI 43- 101 Standards of Disclosure for Mineral Projects, Companion Policy 43-101CP to NI 43-101, and Form 43-101F of NI 43-101.
All the data files reviewed for the due diligence study were provided by Red Back in digital format, with access to paper reports and logs when requested. The work completed by Red Back encompasses several years of intensive exploration including stream sediment surveys, soil surveys, trenching, geophysics, remote sensing, RAB drilling and RC drilling. Historical work conducted in the region has been compiled by previous consults and was available for review.
The primary author for this report is Mr. Todd McCracken, P. Geo., who is a professional geologist with 18 years of experience in exploration and operations, including several years working in shear hosted lode-gold systems. Mr. McCracken visited the Enchi licence area and the Accra offices of Red Back between March 18 and 22, 2010 inclusive.
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3.0 RELIANCE ON OTHER EXPERTS
Wardrop has reviewed and analyzed data and reports provided by Featherstone and Red Back, together with publicly available data, and has drawn its own conclusions, augmented by its direct field examination.
Wardrop has relied on others for information in this report. Information from third party sources are quoted in the report or referenced.
Neither Wardrop or the author of this report are qualified to provide extensive comment on legal issues, including status of tenure associated with the Enchi Property referred to in this report. A description of the property and ownership is provided for general information purpose only. Assessment of these aspects has relied on information provided by Featherstone and Red Back, which has not been independently verified by Wardrop.
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4.0 PROPERTY DESCRIPTION AND LOCATION
The Enchi Project comprises eight prospecting licences, totalling 568 square kilometres (km2) located in the Enchi and Aowin Suaman Districts, in the south- western region of Ghana.
The Project covers a 40 km strike length of the eastern margin of the Sefwi Belt stretching from the Cote d'Ivoire border in the southwest to the southern margin of the Suhuma Forest Reserve, to the northeast. The Enchi Project is located 290 km west of the capital of Accra and 70 km southwest of the Chirano Mine operated by Red Back (Figure 4.1). The project is centered on 5º47’N latitude and 2º42’ W longitude.
The eight licences that make up the Enchi Project are (Figure 4.2) summarized in Table 4.1. Lease boundaries are defined by a list of latitude and longitude coordinates of the corners (pillar points) submitted to the Minerals Commission. The boundaries are not physically marked on the ground and have not been surveyed by Red Back.
Yiwabra, Omanpe and Yankoman are new license applications and are required to proceed through the full application process. The application process for a prospecting license, which is required for drilling and excavation work, is as follows;
1. Application submitted to the Minerals Commission
2. Minerals Commission completes paper work and checks maps.
3. Minerals Commission generates a letter that is sent to the local authorities and is posted for 3 weeks. This provides an opportunity for objections to the license application.
4. Local authorities write back to the Minerals Commission if no objections are presented.
5. Application proceeds to a technical committee.
6. Upon technical committee approval, the licence is prepared and sent to the Minister for signature.
The Yiwabra and Yankoman applications are at stage 2, while Omanpe is at stage 3. The entire process typically takes two years or more to complete. Once an application is submitted, work in the license is allowed to proceed.
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Figure 4.1 Location Map
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Figure 4.2 License Map
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Table 4.1 Enchi License Status
Project Holding Name Type Number Area km Grant Date Status Area Company 30th Consolidation of the Sewum Tokosea Achimfu and Red Back Mining Sewum PL PL 2/424 68.79 November Adaka PLs. Granted Nov 30 2007. Extension Ghana Ltd 2008 granted March 22, 2009 License expired on May 8, 2007. 1 year extension Red Back Mining 9th May granted on 24th December 2007. Renewal with 50% Enkye PL PL 2/404 71.59 Ghana Ltd 2005 shed - TR submitted Dec11 2008, Renewal granted January 16, 2010. Expires January 15, 2012 not Red Back Mining not yet Shed off area for Enkye, new application. Awaiting Yiwabra PL assigned 68.44 Ghana Ltd granted response from Mincom. yet License expired on May 8, 2007. Extended for 1 year Red Back Mining 9th May from 12/12/07. Renewal with 50% shed - TR Nyamabekyere PL PL 2/406 79.74 Ghana Ltd 2005 submitted Dec11 2008. Renewal granted January 16, 2010. Expires January 15, 2012 Enchi not Red Back Mining not yet Shed off area Nyamabekyere, new application. Omanpe PL assigned 79.87 Ghana Ltd granted Awaiting response from Mincom. yet License expired on May 8, 2007. Extended for 1 year Red Back Mining 9th May from 12/12/07. Renewal with 50% shed - TR Yehikwakrom PL PL 2/405 70.49 Ghana Ltd 2005 submitted Dec11 2008. Renewal granted January 16, 2010. Expires January 15, 2012 not Red Back Mining not yet Shed off area Yehikwkrom, new application. Awaiting Yankoman PL assigned 67.9 Ghana Ltd granted response from Mincom. yet License expired on May 9, 2007. 1 year renewal Red Back Mining granted 12th February 2008. Paid for the offer letter Abotia RL RL 2/119 61.79 10-May-06 Ghana Ltd for conversion from RL to PL on 19/5/09. PL granted December 31, 2009. Expires December 30, 2012
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Edgewater has executed a definitive Option Agreement dated May 5, 2010 that outlines the terms of an Option-Joint Venture agreement with Red Back, whereby Edgewater can earn a 51% interest in Red Back’s ownership interest in the Enchi Project. Red Back, through its subsidiary Red Back Mining Ghana Ltd, owns and controls a 90% interest in the Prospecting and Reconnaissance Licenses that make up the Enchi Project. The Government of Ghana owns the remaining 10% interest. Under an Assignment Agreement dated April 27, 2010 between Featherstone and Edgewater, Featherstone has assigned all right, title, interest and obligations in the Enchi Project LOI with Redback to Edgewater in exchange for a Finders Fee.
In order to earn the 51% interest, Edgewater must spend a total of CDN$5.0 million on work expenditures on the project within 26 months, including CDN$2.0 million in the first 14 months. Edgewater will be the operator of the option-joint venture, and would continue to be the operator of the joint venture as long as Edgewater holds the largest equity interest in the joint venture.
Once Edgewater has completed a total of CDN$5.0 million in work expenditures on the project in the 26 month period, Edgewater will have a 51% interest in Red Back’s ownership of the licences and a joint venture company (“JVCO”) would be formed. The share of the ownership of the JVCO would be as follows;
Edgewater 45.9% Red Back 44.1% Ghana Government 10.0%
There are no known royalties, back-in rights, or payments outside of the agreement between Edgewater and Red Back. A 3% royalty on revenues is due to the Ghanaian government.
The Enchi Project is not subject to any known environmental liabilities.
All required permits for conducting exploration on the licences have been granted, or applied for and awaiting government approval.
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5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY
5.1 S ITE T OPOGRAPHY, E LEVATION, AND V EGETATION
The Enchi Project area is primarily drained by the Tano River and its tributaries, which flow generally in an easterly direction. Much of the Project area comprises steep topography incised by river tributaries with scattered flat plateaus with an average height of about 300 metres (m) above sea level.
The majority of the Project area is covered by farmland. The main food crops grown locally are cocoa, plantain, maize, cocoyam, cassava, and rice.
The northern part of the project lies within forest reserves, and is covered by tall, primary, semi-deciduous rain forest. Most of this area is reserved for commercial timber production.
5.2 A CCESS
The Project is located in the south-western Region of Ghana and is accessed from Accra on sealed roads via the regional port city of Takoradi or the mining centre of Tarkwa. From either of these centers access to Enchi (population 9,270), the capital of Aowin-Suaman district is available by gravel roads (Elubo-Enchi Rd or the Asankragua-Enchi Rd). Access through the remainder of the project area is by earthen roads.
Accra has daily international flights to and from Europe, and from South Africa. Domestic flight services have recently been reintroduced in Ghana, including scheduled flights between Accra and Kumasi which is located 170 km northeast of the Project. There is no known scheduled air service to the Project area.
5.3 C LIMATE
The Project is situated in the Wet-Semi Equatorial Climatic Zone with mean-monthly temperature of 27 degrees Celsius (°C). It experiences two rainy seasons; the major rainy season occurs from May to July and the minor September to October. Generally, the annual rainfall is between 1,500 and 1,800 millimetres (mm).
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During the dry season, particularly December to February, Harmattan winds blow from the northeast bringing dust from the Sahara and lowering the humidity.
5.4 I NFRASTRUCTURE
The entire project area has limited infrastructure. The district capital of Enchi is located 77 km north of the substation at Elubo serviced by a 225 kilovolt (kV) line and 122 km southwest of the substation at Asawinso serviced by a 161 kV line. The Chirano Gold Mine located 70 km north-east of the Project is supplied by power from a 33 kV overhead power line from an existing transformer supplying the Bibiani gold mine plant. In addition, six diesel generators are located at the Chirano facility to provide stand-by power in case of Electricity Commission of Ghana (ECG) supply issues.
Potable water must either be trucked into the area or water wells drilled.
The region has a long history of mining, and there is a large population base of skilled and unskilled labour to draw upon during the exploration programs.
Modern sea ports at Takoradi and Tema located 207 km and 447 km south-east of the Project respectively and have been used for the implementation and construction of several gold mines in recent years.
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6.0 HISTORY
The exploration activities in the entire project area date back to colonial times, with activities completed sporadically and by various different individuals and companies.
Both alluvial and reef gold were prospected and exploited by several generations of galamsey workings to the present day. European companies explored, developed, and mined in several phases since 1900. The result is that erratic gold in vein quartz mineralization was "opened up" in a large number of pits, shafts, and drives, notably at the Sewum, Tokosea, Alatakrom, Achimfu, Nkwanta, and Kojina Hill prospects. Only the colonial Sewum and Tokosea mines appear to have any significant development and production history although this is poorly recorded. The limited mining activity ceased in the 1940’s.
Table 6.1 summarizes the exploration activities that have taken place within the boundaries of the Enchi Project as currently held by Red Back. Due to the scattered nature of the work and the various licence holders, Wardrop cautions that the history may not be complete. The majority of the information was derived from reports and digital data acquired from Leo Shield Exploration Ghana NL (“Leo Shield”), Mutual Ghana Ltd (“Mutual”) and Red Back.
The majority of the exploration work conducted by Red Back was undertaken during the period 2004 to 2006. During this period Red Back collected 19,644 soil samples. 237 regional stream sediments samples and 148 rock samples. In addition, Red Back completed 319 RAB drill holes totalling 12,443 m and 153 RC drill holes totalling 17,118 m. The majority of the RAB and RC drilling was targeted on the Boin and Sewum gold prospects.
The extensive work completed by the previous land holders has resulted in the identification of at least 16 gold bearing prospects. A summary of the results for each prospect is provided in Section 9.0 Mineralization.
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Table 6.1 History of Exploration Activities for the Enchi Licence Area
Year Company Activity 1987 EQ Resources • 2,837 soil samples on a 100 m x 25 m spaced grid 1993 Mt. Edon • 3,260 soil samples on 6 km by 3 km, followed by a 100 m x 25 m grid spacing • 250 rock chip and float samples 1994- Mutual • Spot Imagery 1997 • Helicopter Magnetic and Electromagnetics on 100 m spaced lines • Fix Wing Magnetics and Radiometrics on 200 m spaced lines • 2,837 soil samples on 100 m by 25 m grid spacing • 2,257 soil samples on 200 m x 40 m grid spacing • 34 trenches totalling 2,396 m • Six diamond drill holes totalling 464 m. • RC drill program totalling 1,202 m 1995- Leo Shield • 14,470 soil samples in 400 m by 50 m grid 1998 • 89 trenches totalling 10,240 m • Audit sampling at Kojina Hill and Achimfu • Stream sediment sampling (76 pit) • 121 RC holes totalling 7,621 m • 49 RAB holes totalling 2,028 m 2003 Red Back • Assess historical data 2004 Red Back • 237 regional stream sediment samples • 16,728 soil samples • 148 rock chip samples 2005 Red Back • 695 soil samples • 69 trenches totalling 5,750 m • 102 RAB holes totalling 5,261 m • 80 RC holes totalling 9,715 m 2006 Red Back • Ground magnetic survey • Induced Polarization survey • 2,221 soil samples • 38 trenches totalling 3,564 m • 217 RAB holes totalling 7,182 m • 73 RC holes totalling 7,403
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7.0 GEOLOGICAL SETTING
7.1 R EGIONAL G EOLOGICAL S ETTING
The Enchi concession is located within southwest Ghana and straddles the boundary between the Sefwi Volcanic Belt to the west and the Kumasi sedimentary basin to the east. The Safwi and Kumasi are comprised predominantly of Birimian-age rocks (2.17-2.18 Ga) Davis et al. 1994 (Figure 7.1).
The Sefwi Belt is dominated by mafic volcanics, metasediments and intrusive granitoids that are sandwiched between sedimentary basins (Sunyani Basin to the west and the Kumasi Basin to the east. The Safwi Belt is traceable for hundreds of kilometres along strike, but is usually only 20 to 60 km wide.
The Kumasi basin is characterised by wide sequences of marine clastic sediments (quartzite, conglomerates and phyllites). Both the Birimian sediments and volcanics have been extensively metamorphosed to greenschist facies, locally to amphibolite facies.
Extensive faulting occurs along the margins of the volcanic-sediments belts. Observed at local and regional scales, these northeast-trending structures are fundamentally important in the development of gold deposits for the region. The major shear system within the Enchi concession at the boundary of the Sefwi Belt and Kumasi basin is termed the Bibiani Shear Zone. Gold deposits are located in third order structures that splay off the second order structures and sub-parallel to the overall trend of the Bibiani shear zone. The Bibiani Shear Zone has been traced for 50 kms on the Project area. Major structures within the concession are named from west to east, the Bibiani Shear (“BS”), West Sewum Shear (“WSS”), and Nyamebekyere Shear (“NS”).
The Obuasi-Enchi lineament, a major east-west crustal scale feature deflects the Bibiani Shear zone at the north end of the Enchi property in the vicinity of the Eradi gold prospect. This lineament is associated with the major (40 million ounces) Ashanti and (3 million ounces) Akyem gold deposits in the Ashanti Belt, 100 to 200 km to the east.
Multiple tectonic events have affected virtually all Birimian rocks. The dominant event is compressional folding and thrusting from the Eburnean Orogeny (2.1-2.2 Ga) (Schofield, 2006 and Eisenlohr, 1989).
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Figure 7.1 Regional Geology
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7.2 L OCAL G EOLOGY
The entire concession is characterised by variably degraded laterite to residual soil profiles with minor caps of indurated ferro-duricrust across the main hilltops. The local geology is described for the two mineral zones (Boin and Sewum) based on the results received from trenching and RC drilling programs by Red Back (Figure 7.2).
The principal rock types found on the project are defined below;
1. Volcanics – (MB): massive, very fine-grained, textureless, weathered white to brown, to deep pink and red, igneous rock generally evident as un-deformed rafts, fault-bound, within foliated and sheared volcaniclastics and pelitic sediments.
2. Volcaniclastics – (SVC): hanging-wall, fine- to medium-grained, immature, lithic to crystal volcaniclastic wacke, with a characteristic porous, spongy, honeycombed texture. It weathers to light pink and is variably graphitised and foliated to sheared, proximal to the late faults.
3. Turbidites – (SPH): footwall, metre-thick, cyclically bedded, turbidite sequence of graded, fine to medium grained, grey to black, phyllitic pelite- psammite beds. The finer pelite horizons are more preferentially strained and the coarser units are more preferentially fractured.
4. Graphitic Phyllites – (SPG): black, very fine to fine-grained carbonaceous and graphitically altered phyllites and schists. Each of the host rock-types may be preferentially graphitized +/- silicified and sheared proximal to the reactivating faults and shears, becoming increasingly assimilated to SPG. Within and proximal to the main SPG deformation zones texture was the main discriminating feature used to distinguish and map the SVC - SPH contact.
5. Quartz Veins – (QV): massive 0.5m to 5m wide, white to smoky, blue polyphase quartz veins variably faulted and graphitised and mineralised. The major quartz zones represent the main hanging-wall deformation zone developed as a result of the progressive movement along the basal contact shear zone.
6. Basic, Intermediate and Felsic Dykes and Sills – coarse grained granodiorite to diorite and finer grained equivalent andesites to dolerites have been logged. The felsic and intermediate dykes tend to be layer parallel, altered and structurally deformed within the surrounding host volcanics and sediments. The dolerites are generally much later, cross-cutting. They were traditionally mapped as post-deformational, though they are often cross-cut and displaced by late reactivation. There is evidence for multiple generations of dolerites through to post-Cretaceous times.
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Figure 7.2 Local Geology
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During the period 2004 to 2006 Red Back focussed the majority of their exploration programs on the Boin Gold Zone and the Sewum Gold Prospects.
7.2.1 BOIN GOLD ZONE GEOLOGY
The Boin mineralised corridor is >10km in length, located parallel to the Bibiani Shear (“BSZ”) on a major second-order thrust replication. The zone is formed in the west hanging-wall of this major second-order, west-dipping, thrust contact between mafic volcanic +/- volcaniclastic sediments which over-thrust turbidites to the east. The whole contact is expressed as a 10-30 m wide graphitic shear zone, which trends 025-040° and dips west 30-70°. The Boin thrust is an early, regionally second- order splay or replication off the main basin-boundary contact further to the west. Multiple sets of crosscutting fabrics, veins and faults have been recorded within the core and trench logging. The gold is mostly found in the hanging-wall quartz zone and is characterised by massive 20-30 m wide zones of intensive quartz veining cut and fractured by late, graphitic faults.
There are multiple generations of pyrite developed within the Boin structures. The early, barren, non-auriferous pyrite tends to be intense, well formed, coarse and cubic. The later, possibly remobilised, auriferous pyrite tends to form as fine to very fine, disseminated cubic crystals within graphitic fault margins, or amorphous ribbons, rims or coatings within quartz veins. Pyrite is the predominant sulphide mineral logged from all of the Nyamebekyere Shear prospects.
Hydrothermal alteration displays a typical greenschist assemblage (Gold + Quartz + Sericite +/- Graphite +/- Chlorite +/- Epidote +/- Ankerite). Chlorite + epidote clots are observed within, or proximal to, the gold mineralization within the brecciated quartz veins. These probably result from remobilisation associated with regional alteration.
Early hydrothermal alteration and ground preparation is represented by pervasive fine to coarse ankerite crystallisation and pervasive silicification within the SVC, proximal to the major shear zones. The early silica flooding is demonstrated by the presence of rotated pressure shadows around ankerites, together with early, major non-auriferous quartz veining and fault in-fills.
7.2.2 SEWUM GOLD PROSPECTS GEOLOGY
The Sewum West and South prospects are found along the eastern contact of a thrust-bounded volcanic sliver, outcropping 6 km to the east of the Boin Zone on the Nyamebekyere Shear (“NSZ”). The gold mineralization is associated with late D2 to D4 deformation phases. It is structurally controlled within, and adjacent to, late graphitic faults focused on the margins of poly-phase quartz veins within faults. The veins developed along the axial planes of hinges and limbs of earlier hanging-wall D3 drag folds +/- intrusives.
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The main relief of Sewum West Hill is characterised by a relict indurated, duricrust or ferricrete plateau along the main hilltop, degraded breakaways forming the slope crests and variably mixed and transported upper-slope soils progressing into residual mid and lower slope soils. The duricrust mantle is geochemically subdued and potentially transported ferricrete. Various surrounding hilltops have similar remnant duricrust caps and should be evaluated with care to understand and develop the regolith model for the region. Sewum West Hill has a very significant deep weathering profile with RAB holes drilled easily to >85 m below surface.
The Sewum gold prospects form a continuous 40 km strike length of prospects from Sewum Hill northeast through Kojina Hill and Nyamebekeyere Prospects to the north. Further to the north of this sequence of prospects is the Eradi Prospects, which links into the main Bibiani Shear Zone. Another major spur or thrust zone exists further to the east called the Enchi East Trends (EET).
The Sewum setting differs, however, in the scale of shear zones as compared to those expressed at Boin and has proportionally more igneous volcanic rocks and late-stage, intrusive intermediate and felsic dykes or sills.
The Sewum Prospects are situated along several major thrust zones that crop out across the regional 3 km wide north-south corridor, south of Tokosea. The structures comprise (west to east)
• The Road Zone (“SRZ”) • Hilltop Shears (“SHS”) • Main Contact Zone (“MCZ”) • Swum West Zone (“SWZ”) • Seum-Tokosea Mine Trend (“SETO”).
The dominant strike-parallel trend is 030°. However, it is believed that a strong 060° intersecting structural trend may control the distribution of the larger gold deposits. The NSZ is characterised as a regional 3 to 5 km wide, >50 km long, anomalous corridor, or spur, off the main Bibiani Shear Zone, which hosts a multiplicity of potential grade structures within its internal architecture. In the south, around Sewum, the western hanging-wall is volcanic hosting the SRZ and SHS trends, over- thrust along the MCZ graphitic contact onto the basin sediments hosting the Sewum West and SETO trends. Further to the north, the thrust controls sediments over- thrusting sediments. The stacking and replication of volcanics and sediments in the south of Enchi may be important indicating deep plumbing within the southern Enchi blocks. A variety of fine to coarse-grained late, intrusive dykes and sills, ranging from granodiorite and diorite to andesite and dolerite have been observed cross-cutting and layer parallel within the NS at Sewum.
The mineralized zones defined at the MCZ and eastern sediment-hosted trends are like Boin, characteristically pyrite dominant, highly oxidised, soft, variably veined and
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graphitically altered. The Sewum Hilltop Shears are more discrete, 2nd order, volcanic hosted shears and veins. The main SRZ is currently defined as a broad, low-grade, highly ferruginised, moderately graphitic, pyrite dominant, shear zone with quartz and intrusive controls.
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8.0 DEPOSIT TYPE
The Enchi Project mineralized zones have the characteristics of epigenetic, mesothermal quartz vein style gold deposits. This type of mineralization is the most important type of gold occurrence in West Africa, and is commonly referred to as the Ashanti-type.
Mesothermal mineralization has a strong structural control and brittle-ductile deformational style that is related to large tectonic corridors (>50 km long and several km wide). These deformational zones display evidence of complex multiphase displacement with mineralization typically associated with second and third order structures (Roberts, R.G., 1988). Auriferous veins are best developed at dilatational sites where structural or compositional irregularities occur within the shear structure. Favourable sites include conjugate or branching shear zone intersections, major flexures within the shear plane and compositional variations associated with major lithological contacts or incorporated dyke material.
The most common host rock is usually a fine-grained metasediment in close proximity to graphitic or siliceous chemical sediments. However, in some areas, mafic volcanic and intrusive rocks are known to host significant gold mineralization as at Red Back’s Chirano Gold Mine located 70 km north-east of the Project.
Mesothermal alteration is generally more visible within greenschist facies settings. Alteration usually occurs as chloritization, pyritization, silicification and tourmalinization, with minor amounts of potassic and alkali feldspar alteration as well as potassic phyllosilicate (sericite, muscovite, and biotite) alteration. Carbonate alteration is pervasive (ankerite, and calcite) on regional- and deposit-scales (Vu, L. et al, 1987).
Mineralization can occur as both refractory and non-refractory styles. Refractory mineralization is characterized by early-stage, disseminated sulphides of primarily pyrite, and/or arsenopyrite hosting significant gold content, which is overprinted by late-stage quartz veining with minor amounts of visible gold and accessory polymetallic sulphides. Examples of the refractory-style deposits include; Obuasi (381,000ozs Au production 2009, AngloGold), and Prestea (186,000 oz Au production 2009, Golden Star Resources). Non-refractory ore is described as gold not hosted within sulphide minerals of either the early or late stage mineralization events. Examples of non-refractory mineralization include Chirano (183,000 oz Au production 2009, Red Back Mining), and Ahafo (546,000 oz Au production 2009, Newmont).
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9.0 MINERALIZATION
Several anomalous gold zones have been identified by the exploration work carried out by Red Back Mining and the pervious property holders. Section 6.0 History describes the work conducted to date on the various prospects.
Figure 9.1 displays the location of the various prospects within the concession. The summary tables for the prospects list only the RC intervals with greater than 1 gram per tonne (g/t) gold. If no drilling has been completed on the prospect, a summary table of the trenching intervals with greater than 1 g/t gold is provided.
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Figure 9.1 Prospect Location Map
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9.1 B OIN Z ONE
The Boin Zone was explored over a 10 km strike length between 2005 and 2006 by Red Back. The work completed during this time period consisted of 26 trenches totalling 3,495 m, 275 RAB holes totalling 9,341 m, 112 RC holes totalling 13,033 m and 3 diamond drill holes totalling 129 m. Gold bearing mineralization at Boin occurs as late fine grained to medium grained auriferous pyrite cubes, stringers, and blebs within quartz-carbonate (ankerite) veins or as disseminated sulphides within the altered and sheared volcaniclastics or phyllites. The 112 completed RC drill holes returned a total of 80 gold intercepts greater than 1.0 g/t Au as shown in Table 9.1.
Table 9.1 Boin Zone RC Drill Summary
From To From To Hole Au Intersection Hole Au Intersection (m) (m) (m) (m) KBRC001 29 49 20 m @ 1.57 g/t KBRC062 76 80 4 m @ 1.61g/t KBRC002 82 102 20 m @ 1.42 g/t KBRC062 98 104 6 m @ 2.13g/t KBCR003 113 121 8 m @ 1.00 g/t KBRC065 78 91 13 m @ 1.16g/t KBRC004 67 83 16 m @ 2.26 g/t KBRC067 5 21 16 m @ 3.23g/t KBRC005 94 99 5 m @ 1.41 g/t KBRC068 133 137 4 m @ 1.19g/t KBRC005 112 118 6 m @ 1.78 g/t KBRC069 56 74 18 m @ 2.51g/t KBRC007 59 71 12 m @ 1.13 g/t KBRC071 19 22 3 m @ 1.75g/t KBRC007 75 78 3 m @ 1.09 g/t KBRC074 24 32 8 m @ 2.53g/t KBRC007 84 96 12 m @ 1.75 g/t KBRC075 48 52 4 m @ 1.87g/t KBRC007 116 133 17 m @ 1.07 g/t KBRC076 19 35 16 m @ 2.51g/t KBRC007 140 150 10 m @ 1.02 g/t KBRC077 46 52 6 m @ 5.78g/t KBRC008 26 56 30 m @ 1.92 g/t KBRC078 58 60 2 m @ 1.22g/t KBRC011 53 57 4 m @ 1.55 g/t KBRC079 44 48 4 m @ 1.55g/t KBRC011 74 79 5 m @ 1.56 g/t KBRC080 19 21 2 m @ 1.39g/t KBRC011 105 126 21 m @ 2.56 g/t KBRC081 32 35 3 m @ 1.2g/t KBRC012 31 64 33 m @ 2.1 g/t KBRC081 75 80 5 m @ 1.4g/t KBRC013 88 106 18 m @ 1.8 g/t KBRC081 121 124 3 m @ 1.05g/t KBRC016 142 147 5 m @ 1.41 g/t KBRC081 139 147 8 m @ 4.61g/t KBRC023 41 51 10 m @ 1.08 g/t KBRC082 64 68 4 m @ 1.56g/t KBRC024 39 61 22 m @ 1.44 g/t KBRC082 118 120 2 m @ 1.33g/t KBRC026 20 24 4 m @ 1.42 g/t KBRC083 41 45 4 m @ 2.99g/t KBRC028 3 10 7 m @ 1.24 g/t KBRC083 50 56 6 m @ 1.7g/t KBRC030 95 112 17 m @ 1.7 g/t KBRC084 10 14 4 m @ 1.52g/t KBRC034 1 18 17 m @ 2.82 g/t KBRC084 16 20 4 m @ 1.02g/t KBRC035 12 24 12 m @ 1.61 g/t KBRC085 66 72 6 m @ 2.91g/t KBRC036 2 6 4 m @ 1.18 g/t KBRC088 4 11 7 m @ 1.06g/t KBRC037 50 58 8 m @ 1.59 g/t KBRC090 76 78 2 m @ 1.14g/t KBRC039 53 59 6 m @ 1.09 g/t KBRC091 119 122 3 m @ 1.57g/t KBRC040 113 120 7 m @ 1.76 g/t KBRC100 19 32 13 m @ 4.11g/t table continues…
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KBRC041 26 38 12 m @ 1.39 g/t KBRC103 10 18 8 m @ 1.05g/t KBRC044 56 61 5 m @ 1.82 g/t KBRC106 35 39 5 m @ 3.02g/t KBRC044 68 71 3 m @ 1.34 g/t KBRC108 34 39 5 m @ 2.85g/t KBRC044 87 116 29 m @ 1.68 g/t KBRC109 76 83 7 m @ 4.54g/t KBRC045 17 21 4 m @ 2.17 g/t KBRC110 70 73 3 m @ 1.51g/t KBRC047 76 82 6 m @ 1.62 g/t KBRC110 109 111 2 m @ 3.02g/t KBRC047 86 95 9 m @ 1.71 g/t KBRD006 153.4 156.4 3 m @ 1.21g/t KBRC052 111 150 39 m @ 1.79 g/t KBRD059 51 59 8 m @ 1.03g/t KBRC053 11 26 15 m @ 1.61 g/t KBRD059 74 77 3 m @ 1.46g/t KBRC053 31 37 6 m @ 2.35 g/t KBRD059 106 116 10 m @ 1.28g/t KBRC061 29 41 12 m @ 1.39 g/t KBRD060 166.8 172 5.2 m @ 3.77g/t
9.2 S EWUM M INE
The Sewum Mine developed two narrow (0.5 to 1 m wide) quartz veins; the Main Reef and West Reef, over a strike of 450 m. The veins dip southeast at 45 to 60° within a strongly deformed carbonaceous phyllite near a contact with less deformed volcaniclastics to the west. The Sewum mine is possibly hosted by a bedding concordant splay from the second order West Sewum Shear.
In 1940-1951 the Kwahu Mining Co. deepened the main shaft to 120 m and developed the 45 m and 78 m levels. No production was recorded (Kesse, 1985)
Table 9.2 Sewum Mine RC Drill Summary
Hole From (m) To (m) Au Intersection SE3 81 82.8 1.8 m @ 2.5 g/t SE3 88.9 91.5 2.6 m @ 4.4 g/t STRC08 37 38 1.0 m @ 5.5 g/t STRC12 4 5 1.0 m @ 1.8 g/t STRC14 49 51 2.0 m @ 18.8 g/t
9.3 T OKOSEA M INE
The Tokosea prospect is located on the same phyllite/volcaniclastic contact as that located west of the Sewum mine, although offset by faulting south of Adamansu. The prospect includes the workings of the Tokosea mine and several parallel and en echelon gold mineralized quartz veined zones some 30 m to the east, including the Tokosea East prospect. The mine has development on the 18 m, 27 m, and 45 m levels.
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All the significant gold mineralization is hosted by sub vertical quartz veined structures in phyllite with some gold in quartz veinlets within the volcaniclastic unit. The main structure developed in the Tokosea mine is a shear hosted, thin (0.3 to 1 m) lenticular quartz vein, dipping 85° northwest, and following a contact between a dominantly argillaceous (phyllite) footwall (eastern) and a dominantly volcaniclastic hanging-wall (western) unit. The immediate host rock is a black carbonaceous phyllite. The general strike is 030°.
Table 9.3 Tokosea Mine RC Drill Summary
Hole From (m) To (m) Au Intersection STRC01 15 16 1.0 m @ 22.5 g/t STRC01 72 73 1.0 m @ 3.9 g/t STRC02 37 39 2.0 m @ 2.8 g/t STRC02 47 49 2.0 m @ 4.5 g/t
9.4 S EWUM W EST
At Sewum West prospect, a mineralized intersection (4 m at 0.57 g/t) from a trench is associated with sheared contact between mafic volcanics (to the west) and phyllites (to the east). The phyllite dips 40° east-southeast. An acidic dyke, dipping 70° southeast intrudes phyllite near the contact. Both the mafic volcanics and the phyllites are interpreted to be part of the basinal sequence east of the West Sewum Shear.
Table 9.4 Sewum West RC Drill Summary
Hole From (m) To (m) Au Intersection STRC15 0 1 1.0 m@ 1.8 g/t STRC15 20 21 1.0 m @ 1.2 g/t STRC16 5 6 1.0 m @ 1.1 g/t STRC16 49 50 1.0 m @ 1.6 g/t STRC16 52 53 1.0 m @ 2.0 g/t SWRC001 7 18 11.0 m @ 1.36 g/t SWRC006 59 62 3.0 m @ 2.37 g/t
9.5 S EWUM S OUTH
The prospect area includes several gold mineralized quartz vein zones hosted by a sequence of phyllite and volcaniclastics exposed in pits, trenches, and adits. The prospect area coincides with a LandSat anomaly. Extensive sol sampling in the
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regions has demonstrated some of the strongest gold in soil anomalies currently tested.
Table 9.5 Sewum South RC Drill Summary
Hole From (m) To (m) Au Intersection SWRC014 17 24 7 m @ 1.32 g/t SWRC014 68 71 3 m @ 1.24 g/t SWRC015 73 76 3 m @ 1.32 g/t SWRC016 15 23 8 m @ 1.65 g/t SWRC016 69 72 3 m @ 1.56 g/t SWRC017 10 13 3 m @ 1.83 g/t SWRC017 78 87 9 m @ 2.07 g/t SWRC019 7 9 2 m @ 3.60 g/t SWRC020 112 117 5 m @ 1.83 g/t SWRC023 9 24 15 m @ 2.77 g/t SWRC024 6 16 10 m @ 1.35 g/t SWRC024 96 102 6 m @ 1.36 g/t SWRC031 7 12 5 m @ 1.67 g/t
9.6 S EWUM V ILLAGE
The prospect area includes several gold mineralized quartz vein zones hosted by a sequence of phyllite and volcaniclastics exposed in pits, trenches, and adits. The prospect area coincides with a LandSat anomaly. At the Sewum village prospect rock chip sampling revealed gold mineralization from a northeast trending 200 m long line of pits exposing folded quartz veins hosted by phyllite. The Sewum Village prospect is located 500 m south of the Sewum South Prospect. No drilling has been conducted on the prospect to data. Trenching results are summarized in table 9.6
Table 9.6 Sewum Village Trench Summary
Trench Au Intersection SWTR029 9.7 m @ 1.4 g/t SWTR034 10.5 m @ 1.84 g/t SWTR038 24.2 m @ 1.14 g/t SWTR038 7 m @ 1.19 g/t SWTR039B 7 m @ 1.08 g/t SWTR045 11 m @ 2.35 g/t SWTR035 3.3 m @ 2.0 g/t
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9.7 A CHIMFU
Several thin (<1 m wide) quartz veined structures are hosted by phyllite exposed in old workings including small shafts and galamsey workings over strike-lengths of up to 400m and depths of up to 40 m. Erratic high-grade gold is hosted by quartz veining. The vein hosting structures are considered steep southeast dipping thrusts that juxtaposed folded finer and coarser grained metasediments (carbonate altered siltstones, pyrite altered quartzite and greywacke).
Table 9.7 Achimfu RC Drill Summary
Hole From (m) To (m) Au Intersection ARC010 38 40 2.0 m @ 2.6 g/t
9.8 N KWANTA
An adit at the Nkwanta prospect tests a weakly mineralized narrow quartz vein over a strike of 300 m. The quartz vein is hosted by phyllite, within a contact zone, with volcaniclastics to the west. The contact zone is possibly the strike extension of that in the Tokosea mine 3 km to the south. No RC drilling or trenching has been conducted at the Nkwanta prospect.
9.9 T OKOSEA S OUTH
An adit intersected patchy gold (the best result was 1 m at 2.04 g/t) on a shear zone with quartz stringers and veins hosted by phyllite, within a contact zone, with volcaniclastics to the west. The contact zone is the strike extension of that in the Tokosea mine, 800m to the northeast. No RC drilling has been conducted at the Tokosea South prospect.
9.10 A DAMANSU
Quartz veining is hosted by phyllite, within a contact zone, with volcaniclastics to the west. The contact zone is possibly the fault displaced strike extension of that at the Sewum mine and the southern extension of that at the Tokosea mine.
9.11 N YAMEBEKYERE
The Nyamebekyere lode strikes over a distance of 1,600 m, hosted by altered phyllite, 200 to 300 m west of the interpreted position of the second order Nyamebekyere Shear. Nyamebekyere mineralization is part of a continuous 15 km
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strike length of gold prospects on the Enchi Project from Nyamebekyere southwest through Kojina Hill to Sewum Hill in the south. The Nyamebekyere lode and Nyamebekyere Shear converge to the north suggesting that the lode is hosted by a splay off the major structure. An extensive envelope of weak gold mineralization (>0.25 g/t) dips sub-vertically and strikes 030°. RC drilling has been conducted to a depth of approximately 80 m along the entire strike length.
Table 9.8 Nyamebekyere RC Drill Summary
Hole From (m) To (m) Au Intersection KRC021 29 43 14 m @ 1.57 g/t KRC024 10 16 6 m @ 3.90 g/t KRC027 3 14 11 m @ 3.6 g/t KRC032 69 85 16 m @ 1.83 g/t KRC033 54 62 8 m @ 2.94 g/t KRC043 42 51 9 m @ 3.07 g/t KRC061 76 83 7 m @ 2.08 g/t KRC064 7 13 6 m @ 2.18 g/t KRC064 22 30 8 m @ 1.51 g/t KRC065 15 24 9 m @ 1.92 g/t KRC065 29 39 10 m @ 1.75 g/t KRC075 12 28 16 m @ 1.66 g/t KRC087 24 34 10 m @ 1.49 g/t KRC095 21 25 4 m @ 5.19 g/t KRC096 21 30 9 m @ 1.90 g/t KRC097 7 16 9 m @ 2.77 g/t
9.12 K WAKYEKROM
The Kwakyekrom prospect is 4km southwest of the Nyamebekyere deposit. Several shear hosted gold lodes strike northeast and dip steeply (70-80°) east within phyllite, 500 m to 900 m west of the Nyamebekyere shear.
Table 9.9 Kwakyekrom RC Drill Summary
Hole From (m) To (m) Au Intersection ADRC006 0 9 9 m @ 1.57 g/t ADRC006 16 22 6 m @ 2.50 g/t
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9.13 B EEKOKROM
The prospect straddles projected strike positions of mineralized structures defined at the Kwakyekrom prospect, 2 km to the southeast. No RC drilling has been conducted at the Beekokrom prospect.
9.14 K OJINA H ILL
Mineralization is hosted by a zone of deeply weathered quartz-veined phyllite. Fuchsite altered greywacke is also noted. Mineralized zone dips west at 80° and plunges steeply to moderately north.
Table 9.10 Kojina Hill RC Drill Summary
Hole From (m) To (m) Au Intersection KRC005 3 10 7 m @ 2.30 g/t KRC005 17 24 7 m @ 8.50 g/t KRC006 18 26 8 m @ 1.65 g/t KRC006 45 47 2 m @ 1.34 g/t KRC007 48 50 2 m @ 3.16 g/t KRC009 46 50 4 m @ 6.20 g/t KRC010 8 13 5 m @ 2.30 g/t KRC016 42 47 5 m @ 2.60 g/t KRC016 69 80 11.0 m @ 4.30 g/t KRC049A 76 78 2 m @ 1.12 g/t
9.15 A LATAKROM
The Alatakrom prospect is along strike, north-east of the Tokosea East prospect. Several conformable sub-vertical gold mineralized quartz vein zones are hosted by phyllite, within 50 m of a contact with volcaniclastics to the west.
Table 9.11 Alatakrom RC Drill Summary
Hole From (m) To (m) Au Intersection STRC18 56 58 2 m @ 5.3 g/t
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9.16 E RADI
During 2004 and 2005 Red Back completed an extensive soil sampling program in the Eradi area on 400m by 50 m spacings and locally 100m by 50 m sample spacing. Three parallel gold in soil anomalies were defined (Eradi East, Eradi Central and Eradi West, with gold-in-soil anomaly measuring up to 3.2 km in strike length and up to 200 m in width. Only two trenches totalling 435.5 m were completed on the Eradi Central soil anomaly where 256 continuous rock samples were collected from the trenches. No trenching was completed on the Eradi West and Eradi East gold in soil anomalies and no drilling has been conducted on any of the Eradi soil anomalies. Table 9.12 summarizes the significant trench results from the Eradi Central anomaly. The Eradi prospect is located in the area where the Boin and Nyamebekyere shears converge and are deflected by the Obuasi Structure (Figure 9.2)
Table 9.12 Eradi Trench Summary
Trench Au Intersection ERT001 5.0m @ 0.63 g/t ERT002 36.9 m @ 1.47 g/t
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Figure 9.2 Eradi Gold Target
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10.0 EXPLORATION
Edgewater has not conducted any exploration programs on the concessions to date.
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11.0 DRILLING
Edgewater has not conducted any diamond drilling or reverse circulation drilling on the concession to date.
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12.0 SAMPLING METHOD AND APPROACH
Edgewater has not conducted any sampling programs on the concession to date.
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13.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY
13.1 E DGEWATER
Edgewater has not conducted any sample preparation or analysis of any sort on the concession.
13.2 R ED B ACK
The sampling programs conducted by Red Back were not observed or audited by Wardrop. At no time was an employee, officer, director or associate of Edgewater involved with the sampling programs conducted by Red Back. A review of Red Back’s geologist’s procedural manual suggests a robust program that meets current industry standards for sampling and quality assurance/quality control (QA/QC) measures.
Red Back constructed RC chip boards for the 2005 and 2006 RC drill programs. Boards were clearly marked with borehole numbers, and depth intervals. The boards are stored in numerical order, in boxes at the Red Back office in Accra. (Figure 13.1 and Figure 13.2)
Figure 13.1 Chip Boards
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Figure 13.2 Chip Board
Pulps for the RC drill campaigns have been returned to Red Back and are stored in cardboard boxes the Red Back office in Accra (Figures 13.3 and 13.4).
Figure 13.3 Pulp Boxes
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Figure 13.4 Pulp Boxes
To date, very limited diamond drill coring has been completed on the concession by Red Back. The core has been sampled repeatedly and as a result very little core remains. Core was stored on site and has recently been transported to the Red Back office in Accra. Core was placed in wooden boxes with wooden run markers placed at 1 m intervals. The boxes were marked with marker on the end with the borehole number and the box number (Figure 13.5).
Analysis for the RC chips and drill core was performed at Transworld Laboratories Ghana Ltd. and Analabs. Both laboratories are based in Ghana and since the 2005/2006 RC programs have been acquired by larger international analytical companies, Intertek Mineral Group and SGS respectively. Both laboratories are accredited.
The following sample preparation and analysis was conducted on the material collected by Red Back;
Stream Sediments; dried and sieved to -80 mesh, pulverised to 90% passing -75 microns, analysed by 50 g Fire Assay with Aqua Regia digest an AAS finish.
Soil Samples: dried and pulverized to 90% passing -75 microns, analysed by 50 g Fire Assay with Aqua Regia and DIBK extraction with an AAS finish.
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Trench, RC and diamond Drill Core; pulverized to 90% passing -75 microns, analysed by 50 g Fire Assay with Aqua Regia with an AAS finish.
Figure 13.5 Drill Core
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14.0 DATA VERIFICATION
14.1 E DGEWATER
Edgewater has not conducted any sampling programs on the Enchi concessions to date.
Red Back Mining has conducted an extensive data validation and QA/QC program. A summary of the Red Back verification process is described below. Wardrop has not conducted an independent validation of the data at this time. Red Back being an established producer in the region with a TSX listing, combined with the robust data validation process that Red Back conducts itself, it was determined by the author that due to the volume of data presented, that the validation of the data could be conducted later date prior to a resource estimate.
14.2 R ED B ACK
The various trench, RAB and RC drilling log formats, procedures and dictionaries are found in the Exploration Procedures Manual available from Red Back Mining.
All Red Back geological logging and sampling was conducted by geologists at the face, or on the rig, manually using standardized paper copy logging forms and dictionaries. All hard-copy field logs were manually transcribed by a Data Entry Clerk (DEC) into a Red Back designed Microsoft Access™ front-end database. The front- end database was designed with a set of data entry forms, the digital equivalent of the Exploration Manual, to capture all drill hole and trench collar, survey, geology and sampling data. Each alphanumeric field, or attribute, has a linked look-up tables, which controls the entry of the specifically defined dictionary codes for each of the defined database attributes. This prevents the entry of incorrect codes. The numeric fields included in the survey, sampling and geology forms were also manually transcribed to complete the database for each of the Projects.
Following data entry, each drill hole or trench log is printed out for the logging geologist to validate and approve, or sign-off. The file is then transferred to the Senior Geologist to compile into the drill hole database. Micromine™ software has been used by the Senior Geologists to validate and compile the three dimensional (3D) drill hole databases at both Boin and Sewum. Micromine includes a variety of techniques to validate the drill hole data. Senior geological staff complete the validation of the project Drill hole Databases and all RC and DD geological,
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geotechnical and structural logs were reviewed during the 2005 and 2006 programs, prior to compiling the final resource and project sections.
The numeric assay data, produced by Transworld and Analabs labs were merged and validated into the Access™ database through Datashed™ in the Accra Head Office. The Senior Geologist at site is responsible for the routine analysis and reporting on the QC/QA standards, blanks and duplicates submitted during the programs.
Routinely, Red Back submitted a combined 12% QC component with project sampling, comprised of 8% blind field duplicates, 2% in-house blanks and 2% Rocklabs CRM standards. Since Wardrop has not validated the data set, it has not reviewed the results of the QA/QC data for compliance or comment of the validity of the results.
A validation of the Red Back RC drill collars was conducted during the 2010 site visit. Seventeen collars representing 11% of the RC drilling completed by Red Back were surveyed using a hand held Garmin GPSMAP 60Sx. Global Positioning System (GPS) readings were collected in UTM WGS 84 co-ordinate system. Table 14.1 contains the results of the collar checks. Two of the Boin Zone collars have substantial errors, which are likely due to incorrectly recording the collar number in the field. The accepted error for the hand held GPS is typically 3 to 5 m of which all but one collar passed (SWRC005). During future drill programs, drill collar SWRC005 should be checked a second time with the GPS to verify the location.
Wardrop collect 21 pulps from the Boin RC drilling program and resubmitted the samples to SGS Laboratories of Ghana for check analysis. The small number of samples collected does not statistically represent the entire Boin Zone drilling data set, yet should indicate the reproducibility of the material. Over all the data collected has a strong correlation to the original samples submitted by Red Back (R=0.84) (Figure 14.1). The correlation does appear to break down with samples with assay values above the 2.5 g/t range. This is likely due to the analytical process of flame atomic absorption (FAA), which is fire-assay with an atomic absorption finish. FAA is accurate at the lower detection limits, yet tends to have poor precision range at the higher detection limits. It would be recommended for future programs to switch analysis to a fire assay with a gravimetric finish for samples with grades higher than 3 to 5 g/t, which has better precision at the higher grades.
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Table 14.1 Validation of Red Back RC Drill Collars
Wardrop GPS Red Back Log Delta Dist BHID Site Comment Northing Easting Elevation Northing Easting Elevation (m) KBRC-003 633907 519032 194 633905 519034 194 Boin 2.6 KBRC-038 633844 519178 193 633902 519021 193 Boin 167.4 incorrect GPS reading KBRC-040 633936 519183 187 633937 519183 187 Boin 0.7 KBRC-044 634032 519218 163 634033 519217 163 Boin 1.1 KBRC-046 634133 519321 156 634131 519322 156 Boin 2.0 KBRC-054 634748 519566 176 634749 519567 176 Boin 1.5 KBRC-083 634177 519388 157 636784 521474 135 Boin 3338.3 miss identified BHID KBRC-085 633993 519299 163 633992 519300 163 Boin 1.6 KBRC-086 634021 519248 167 634021 519248 167 Boin 0.4 KBRC-106 633953 519156 180 633954 519155 180 Boin 0.8 SWRC-001 629009 520941 138 629097 520937 138 Sewum 2.0 SWRC-005 629175 521003 143 629182 520997 143 Sewum 9.5 SWRC-007 627932 521296 128 627931 521298 128 Sewum 2.3 SWRC-009 627669 521179 154 627668 521179 154 Sewum 1.0 SWRC-014 627707 521237 158 627705 521232 158 Sewum 5.0 SWRC-015 627735 521261 159 627735 521260 159 Sewum 1.0 SWRC-021 627809 521294 160 627806 521298 160 Sewum 4.9
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Figure 14.1 Wardrop Check Pulp Assays versus Red Back Original Assays
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15.0 ADJACENT PROPERTIES
Edgewater Exploration’s Enchi Gold Project is located 70 km south of Red Back’s Chirano Gold Mine property (Figure 4.1). The Chirano mine area lies within the Proterozoic terrain of southwest Ghana, along a major structure separating the Sefwi Belt to the west from the Kumasi Basin to the east known as the Bibiani Shear Zone (BM”). The Enchi Gold Project covers a 40 km segment of the BMZ where known gold mineralization is associated with major structures and subsidiary splays. The Chirano gold mine was commissioned in September, 2005 and in 2009 processed 2.72 Mt of ore grading 2.38 g/t Au with production of 181,000 oz of gold at a cash operating cost of $444/oz (Red Back Mining AIF, March 30, 2010). Gold mineralization at Chirano is hosted within fractured and intensely hydrothermally altered granite where gold is associated with 1% to 5% pyrite and the distribution of gold appears to be closely associated with the presence of pyrite (Red Back AIF, March 30, 2010).
At the Chirano Mine, fourteen known gold deposits over a 9 km strike length range in individual length from 150 m to 700 m and range in thickness from a few metres to over 70 m (Red Back NI 43-101 Chirano Gold Mine Technical Report, May, 2009). Individual deposits may extend to over 700 m in depth. Mining at Chirano is done by both open pit and underground extraction. As of December 21st, 2010 total open pit and underground Measured, Indicated, and Stockpiles Resources are 41.7 Mt grading 2.49 g/t Au containing 3.34 Moz, and Inferred Resources of 12.6 Mt grading 3.38 g/t Au containing 1.3 Moz. Total open pit Measured, Indicated and Stockpiles Resources are 30.9 Mt grading 1.73 g/t Au containing 1.72 Moz and Inferred Resources of 5.6 Mt grading 1.7 g/t Au containing 0.3 Moz (Red Back AIF, March 30, 2010).
Wardrop has not verified the technical data on the Chirano Mine and the gold mineralization at Chirano is not necessarily indicative of the mineralization on the Enchi Gold Project.
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16.0 MINERAL PROCESSING AND METALLURGICAL TESTING
Edgewater has not conducted and metallurgical testing on material from the Enchi project.
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17.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES
No compliant resource estimate has been generated for any of the prospects within the Enchi licence area.
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18.0 OTHER RELEVANT DATA AND INFORMATION
This section is not applicable.
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19.0 INTERPRETATION AND CONCLUSIONS
The Enchi Project comprises a land package with a strike-length of over 40 km in along the Birimian-aged Bibiani Shear Zone. The Bibiani Shear is known to host significantly large lode-gold deposits, such as the Bibiani (5 Moz Au historical production) and Chirano (183,000 oz Au production 2009) deposits.
Currently the eight licences (568 km 2) are held by Red Back (90%) and the Ghana Government (10%) Edgewater has entered into a definitive Option Agreement with Red Back dated May 5, 2010 to earn a 51% interest in Red Back’s ownership in the Project.
A vast amount of geological, geochemical and geophysical data has been collected in the region by several different companies. Red Back has attempted, fairly successfully, to compile this data into a central repository. Wardrop has not validated any of the data in respect to the digital database against original assay certificates or drill logs.
The geological dataset consists of data derived from soil surveys, stream sediment sampling, airborne geophysics, remote sensing, trenching, rock chip samples, RAB drilling and RC drilling. The data from the various data sets were reviewed by the author and deemed to be suitable for use in future exploration programs and interpretation after complete validation of the data.
At the time this report was generated, 16 prospects have been identified through the use of airborne and ground geophysics, 45,000 soil samples and 230 trenches totalling 22,000 meters, A prospects consist of anomalous gold associated with quartz carbonate veins hosted within a deformational zone.
Of the 16 prospect currently identified, ten have been drilled though a combination of RAB, RC and diamond drill totalling 648 holes (40,876 m). The most significant results from the drilling have occurred at the Boin Zone, Sewum Valley (Sewum Mine, Sewum West, Sewum South, and Sewum Village) and Nyamebekyere prospects with the occurrence of significantly elevated gold grades (>1 g/t) over considerable widths and continuous over hundreds of meters of strike length.
Several minor inconsistencies were noted within the data set during the review and should be corrected prior to implementation of the data into future exploration programs.
1. There is a distinct lack of quality geological mapping at the prospect and semi-regional scale. This is largely hampered by the exceptionally small amount of outcrop exposure.
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2. Extensive soil sampling campaigns have been conducted over the majority of the licence tenement with relatively good success. Several minor issues related to the soil surveys have been identified:
• the creation of artificial sub-sets due to the various sample media collected, and analytical procedures used of the ten year period • lack of regolith mapping • lack of data verification • no elevation data incorporated in to the dataset.
3. Trenching was conducted in areas demonstrating anomalous gold in soil results. The trench data has been effectively converted in to borehole-style data to work in conjunction with the RC and RAB holes geological mapping of the trenches was completed and available as hard copies, yet is it difficult to determine if the trench mapping has been incorporated into the project scale geological map. The sample medium of the trenches at times displays a leaching of gold which would imply that trench samples may not be reliable.
4. RAB Drilling has proven to be effective in certain areas. Wet areas can be problematic for the RAB, yet can be more effective than soil sampling. The limitation of the RAB drilling is the depth of penetration. RC and diamond drill core typically provide a better quality sample and have the potential to drill to greater depths.
5. RC Drilling would appear to be the most cost-effective method of delineating gold mineralization in terms of speed and cost per meter, but the quality of the data is downgraded compared to the result typically recovered for a coring program.
6. The elevations of the historical trenches and RC drilling do not match the work conducted by Red Back. There needs to be a correction to the database.
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20.0 RECOMMENDATIONS
20.1 E XPLORATION R ECOMMENDATIONS
The nature of the geological environment and the data collected to date by the various operators using an assortment of exploration tools warrants additional exploration expenditures to advance the Project. Exploration on the project is proposed as two separate programs, which are independent of each other and can be run concurrently, as the result of one program does not affect the work proposed in the second program.
20.1.1 BOIN AND NYAMEBEKYERE RESOURCE DELINEATION
Extensive RC drilling has been conducted at both the Boin (13,033 m in 112 holes) and Nyamebekyere (4,658 m in 71 drill holes) gold prospects in the past. In order to upgrade these zones to allow for the generation of a NI43-101 Compliant Resource Statement, a delineation diamond drilling and RC program is recommended.
The drilling programs at both prospects are designed to share one RC and one diamond drill core rig. Once the RC rig has completed the drilling at Boin, it would be moved to Nyamebekyere. The same practice should be implemented with the diamond drill rig, which would start up approximately one month after the RC rig in order to allow for the assay results to be returned from the RC program.
At present, gold mineralization of > 1.0 g/t Au is open along strike and down dip of the current drilling at both the Boin and Nyamebekyere prospects. The RC programs are designed to extend the resources along strike using the more cost effective RC rig while confirming the existing RC results and providing geological and structural data using a diamond drill ore rig.
Table 20.1 summarizes the budget proposed for the RC and diamond drill program.
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Table 20.1 Boin and Nyamebekyere Drill Budget
Project Activity Rate Units Cost Survey sites $150/day 5 $750 Compensation - Access & Sites $10/m 5,500 $55,000 RC Drilling (30 holes) $80/m 3,750 $300,000 Boin (includes all drilling related charges, sample analysis, dozing, support, DD Drilling (15 holes) $180/m 2,700 $486,000 (includes all drilling related charges, sample analysis, dozing, support, Survey sites $150/day 5 $750 Compensation - Access & Sites $10/m 5,000 $50,000 RC Drilling (25 holes) $80/m 3,100 $248,000 Nyamebekyere (includes all drilling related charges, sample analysis, dozing, support, DD Drilling (15 holes) $180/m 2,700 $486,000 (includes all drilling related charges, sample analysis, dozing, support, Salaries $12000/month 5 $60,000 Man Days $4000/month 3 $12,000 Indirect Costs Fuel $7500/month 3 $22,500 Admin $4,000 Consumables $10,000 Total $1,735,000
20.1.2 ENCHI REGIONAL EXPLORATION AND TARGET GENERATION
Extension of the detailed soil grid to the east of the Boin prospect and north of the Sewum prospect is recommended. This would allow for the collection of geochemical data that targets the highly prospective structural boundary between the volcanic and sediments as well as the across the Nyamebekyere Shear.
In addition to the soil sampling, a geological mapping program should be conducted in order to map the regolith of the region as well as detailed mapping of any outcrop that may be encountered. Upon completion of the soil and mapping programs, the compilation and review of all the data should be under taken to prioritize future exploration programs.
Table 20.2 summarized the budget proposed for the soil survey and mapping program.
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Table 20.2 Enchi Soil Survey Budget
Project Activity Rate Units Cost 200 x 50 m soil sample grid $25/sample 6200 $155,000 Geological Mapping $1000/day 29 $29,000 Salaries $12000/month 6 $72,000 Indirect Costs Admin $4,000 Consumables $4,000 Total $264,000
20.2 O THER R ECOMMENDATIONS
The extremely large digital dataset, particularity in terms of MapInfo files should be compiled and organized, including the removal of duplicate files, in order to allow a more efficient review of the data. Following the compilation of the data sets, a reassessment of the information should be conducted to prioritize the exploration targets based on a geological model that utilizes all of the available data.
Exploration targets should be generated using a systematic approach, which is derived from the parameters that best suit the deposit model being targeted, large tonnage-low grade versus low tonnage-high grade.
The previous work conducted by Red back and other operators have clearly demonstrated that the use of regional magnetic survey combined with LandSat imagery are great tools for generating prospect targets. With the proper geological model defined, a disciplined approach to the exploration programs should be implemented. This would eliminate the inconsistent way in which many of the prospects have been drilled.
During all exploration programs, it is recommended that the following practices are implemented:
• during all soil sampling programs, regolith mapping should be conducted to allow proper evaluation of the soil data • due to the small amount of outcrop exposure, detailed geological mapping of all outcrop occurrences, including adits and other underground working should be conducted where feasible • a more sophisticated interpretation methodology should be implemented when reviewing soil sampling results • continued used of the RAB drilling is encouraged, particularly in regions where soil sampling is poor or unavailable, such as wet low-lying areas • employ a combined RC and coring drilling program to target anomalous zones to effectively collect the pertinent data required to evaluate the prospect. RC drilling should be used on a broad spacing to delineate the
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potential strike extent of the prospect as well as collecting considerable amounts of geological and geochemical data in a cost effective manner. Diamond drill coring should be merged into the exploration program once the RC drilling has identified an anomalous gold-bearing zone with both strike and depth potential. The drill coring provides a superior sample medium for interpretation of vein systems and allows detailed sampling of various geological features.
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21.0 REFERENCES
Ashanti Gold, http://www.anglogold.com/About+our+business/Our+operations/Ghana.htm
Davis, D.W., Hirdes, W., Shaltegger, E., and Nunoo, 1994; U-Pb age constraints on deposition and provenance of Birimian and gold-bearing Tarkwaian sediments in Ghana, West Africa, Precambrian Research, v.67, pp. 89-107.
Eisenlohr, B.N., 1989; The Structure Geology of the Birimian and Tarkwaian Rocks of Southwest Ghana, Rep. Arch. BGR, pp. 66.
Golden Star Resources, http://www.gsr.com/News_Releases/Archived/Index.asp
Kesse, G.O., 1985; The Mineral and Rock Resources of Ghana, A.A. Balkema.
Newmont, http://files.shareholder.com/downloads/NEM/936443965x0x352998/de17cb73-db00- 4e32-8717- f2f7d6437312/NEM_Fourth_Quarter_and_2009_Earnings_Release_Presentation.pdf
Red Back Mining Inc. Annual Information Form, March 30, 2010
Red Back Mining Inc., http://www.redbackmining.com/s/OperationsUpdate.asp
Red Back Mining Inc. Chirano Gold Mine Technical Report, May, 2009
Roberts, R.G, 1988; Archean Lode Gold Deposits, Ore Deposit Models, Geoscience Canada reprint series 3, pp. 1-20.
Schofield, D I ;"Timing and kinematics of Eburnean tectonics in the central Reguibat Shield, Mauritania". Journal of the Geological Society. FindArticles.com. 23 Apr, 2010. http://findarticles.com/p/articles/mi_qa3721/is_200605/ai_n17184426/,
Stuart, H., 2009; Technical Report on the Chirano Gold Mine, Republic of Ghana,
Vu, L., Darling, R., Beland, J, and Popov, V., 1987; Structures of the Ferderber Gold Deposit, Belmoral Mines Ltd., Val d Or, Quebec; CIMM Bulletin, vol 80, No. 907, pp. 68-77.
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22.0 CERTIFICATE OF QUALIFIED PERSON
22.1 C ERTIFICATE OF T ODD M C C RACKEN, P. G EO.
I, Todd McCracken, of Sudbury, Ontario, do hereby certify that as the author of this report entitled “Technical Report on the Enchi Gold Project, Ghana” dated June 15, 2010, I hereby make the following statements:
• I am a Principal Geologist with Wardrop Engineering Inc. with a business address at 101-957 Cambrian Heights, Sudbury, Ontario, P3C 5M6. • I am a graduate of the University of Waterloo, (B. Sc. Honours, 1992). • I am a member in good standing of the Association of Professional Geoscientists of Ontario (License #0631). • I have practiced my profession continuously since graduation. • I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that, by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purpose of NI 43-101. • I have 18 years of exploration, operations and consulting experience, including eight years of mesothermal lode gold experience in Archean and Proterozoic terrains. • I am responsible for all Section(s) of this technical report titled “Technical Report on the Enchi Gold Project, Ghana“, dated June 15, 2010. I conducted a site visit of the property from March 18 to 22, 2010. • I have no prior involvement with the Property that is the subject of the Technical Report. • As of the date of this Certificate, to my knowledge, information, and belief, this Technical Report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading. • I am independent of the Issuer as defined by Section 1.4 of the Instrument. • I have read National Instrument 43-101 and the Technical Report has been prepared in compliance with National Instrument 43-101 and Form 43- 101F1.
Signed and dated this 15th day of June, 2010 at Sudbury, Ontario.
“Original document, version 03, signed and sealed by Todd McCracken, P. Geo.” Todd McCracken, P. Geo. Principal Geologist Edgewater Exploration Inc. 56 1054420100-REP-R0001-03 Technical Report on the Enchi Gold Project, Ghana June 2010