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TECHNICAL REPORT and PRELIMINARY ECONOMIC ASSESSMENT for the MOSS LAKE PROJECT (Compliant with Regulation 43-101 / NI 43-101 and Form 43-101F1)

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TECHNICAL REPORT and PRELIMINARY ECONOMIC ASSESSMENT for the MOSS LAKE PROJECT (Compliant with Regulation 43-101 / NI 43-101 and Form 43-101F1) InnovExplo – Consulting Firm Mines & Exploration 560, 3rd Avenue Val-d’Or, Québec, Canada, J9P 1S4 Telephone: 819.874.0447 Facsimile: 819.874.0379 Toll-free: 866.749.8140 Email: [email protected] Web site: www.innovexplo.com TECHNICAL REPORT AND PRELIMINARY ECONOMIC ASSESSMENT FOR THE MOSS LAKE PROJECT (compliant with Regulation 43-101 / NI 43-101 and Form 43-101F1) Project Location Latitude: 48º 32´ North; Longitude: 90º 41’ West Moss Township Province of Ontario, Canada Prepared for Moss Lake Gold Mines Ltd 8 King Street East, Suite 1305 Toronto, Ontario M5C 1B5 Prepared by: Sylvie Poirier, Eng Gary Anthony Patrick, B.Sc InnovExplo – Consulting Firm Consulting Metallurgist Val-d’Or (Québec) Perth (Australia) Pierre-Luc Richard, M.Sc, P.Geo Julie Palich, M.Sc, P.Geo InnovExplo – Consulting Firm Caracle Creek Val-d’Or (Québec) Toronto (Ontario) Effective Date: May 31, 2013 Signature Date: July 30, 2013 www.innovexplo.com TABLE OF CONTENTS CERTIFICATE OF AUTHOR – PIERRE-LUC RICHARD ............................................................. 9 CERTIFICATE OF AUTHOR – SYLVIE POIRIER ...................................................................... 10 CERTIFICATE OF AUTHOR – JULIE PALICH .......................................................................... 11 CERTIFICATE OF AUTHOR – GARY ANTHONY PATRICK .................................................... 12 1. SUMMARY ...................................................................................................................... 13 2. INTRODUCTION ............................................................................................................. 25 2.1 Terms of Reference and Scope of Work ..................................................................... 25 2.2 Principal Sources of Information .................................................................................. 25 2.3 Qualified Persons and Inspection on the Property ...................................................... 27 2.4 Units and Currencies ................................................................................................... 27 3. RELIANCE ON OTHER EXPERTS ................................................................................ 28 4. PROPERTY DESCRIPTION AND LOCATION ............................................................... 29 4.1 Location ....................................................................................................................... 29 4.2 Mining Title and Claim Status ...................................................................................... 30 4.2.1 Mining titles ........................................................................................................ 30 4.2.2 Ownership history and underlying agreements.................................................. 34 4.3 Environment, Permits and Development Expenditures ............................................... 35 5. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ............................................................................................................ 37 5.1 Accessibility ................................................................................................................. 37 5.2 Climate ........................................................................................................................ 37 5.3 Local Resources and Infrastructure ............................................................................. 37 5.4 Physiography ............................................................................................................... 38 6. HISTORY ......................................................................................................................... 40 7. GEOLOGICAL SETTING AND MINERALIZATION ....................................................... 52 7.1 Regional Geological Setting ........................................................................................ 52 7.1.1 Superior Province .............................................................................................. 52 7.1.2 Quetico terrane .................................................................................................. 53 7.1.3 Wawa terrane .................................................................................................... 54 7.2 Local Geological Setting .............................................................................................. 55 7.2.1 Moss Township area .......................................................................................... 55 7.2.2 Moss Lake property ........................................................................................... 58 8. DEPOSIT TYPES ............................................................................................................ 61 9. EXPLORATION ............................................................................................................... 64 10. DRILLING ........................................................................................................................ 65 11. SAMPLE PREPARATION, ANALYSES, AND SECURITY ............................................ 66 11.1 Sample Preparation ..................................................................................................... 66 11.2 Gold Analysis ............................................................................................................... 66 11.3 Quality Control ............................................................................................................. 66 11.3.1 Blanks ................................................................................................................ 67 11.3.2 Certified Reference Materials (standards) ......................................................... 67 11.3.3 Duplicates .......................................................................................................... 68 43-101 Technical Report and Mineral Resource Estimate – Moss Lake Deposit 2 www.innovexplo.com 11.4 Conclusions ................................................................................................................. 70 12. DATA VERIFICATION .................................................................................................... 71 12.1 Historical Work ............................................................................................................ 71 12.2 Moss Lake Database ................................................................................................... 71 12.3 Moss Lake Diamond Drilling ........................................................................................ 71 12.4 Moss Lake Sampling and Assaying Procedures ......................................................... 73 12.5 Site Visit Sampling ....................................................................................................... 75 12.6 Underground Workings ................................................................................................ 77 13. MINERAL PROCESSING AND METALLURGICAL TESTING ...................................... 78 13.1 Introduction .................................................................................................................. 78 13.2 Metallurgical Samples ................................................................................................. 78 13.2.1 Sample receipt and characterization ................................................................. 78 13.2.2 Sample inventory ............................................................................................... 78 13.2.3 Sample preparation ........................................................................................... 79 13.3 Head Analysis .............................................................................................................. 79 13.4 Mineralogy ................................................................................................................... 80 13.5 Ore Characterization ................................................................................................... 80 13.5.1 Bond Ball Mill Work Index testing (BBMWi) ....................................................... 81 13.5.2 Bond Rod Mill Work Index testing (BRMWi) ...................................................... 81 13.5.3 Bond Abrasion testing ........................................................................................ 81 13.5.4 SAG Mill Comminution testing (SMC) ................................................................ 81 13.5.5 MinnovEX SAG Power Index testing (SPI®) ..................................................... 82 13.6 Metallurgical Test Work ............................................................................................... 82 13.6.1 Whole mineralized material cyanidation leaching .............................................. 82 13.6.2 Diagnostic leach test .......................................................................................... 87 13.7 Acid Base Accounting Test Work ................................................................................ 89 13.8 Selection of Processing Methods ................................................................................ 90 13.8.1 Process flowsheet .............................................................................................. 90 13.8.2 Throughput design basis ..................................................................................
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