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Eagle's Nest Feasibility Study

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Eagle's Nest Feasibility Study NORONT RESOURCES LTD. NI 43-101 TECHNICAL REPORT FEASIBILITY STUDY McFAULDS LAKE PROPERTY EAGLE’S NEST PROJECT JAMES BAY LOWLANDS ONTARIO, CANADA Harry Burgess, P.Eng. Richard Gowans, P.Eng. Christopher Jacobs, C.Eng., MIMMM Charley Murahwi, M.Sc., P.Geo., MAusIMM Bogdan Damjanović, P.Eng. Effective Date: September 4, 2012 Signing Date: October 19, 2012 Table of Contents Page 1.0 SUMMARY .................................................................................................................... 1 1.1 INTRODUCTION ....................................................................................................... 1 1.2 TERMS OF REFERENCE .......................................................................................... 2 1.2.1 Qualified Persons and Site Visits ......................................................................... 2 1.3 PREVIOUS TECHNICAL REPORTS ........................................................................ 2 1.4 LOCATION ................................................................................................................. 3 1.5 CLAIMS ...................................................................................................................... 5 1.6 HISTORY .................................................................................................................... 5 1.7 GEOLOGY AND MINERALIZATION ..................................................................... 5 1.8 EXPLORATION ......................................................................................................... 6 1.9 SAMPLING METHOD AND APPROACH, SAMPLE PREPARATION, ANALYSES AND SECURITY ..................................................... 6 1.10 DATA VERIFICATION ............................................................................................. 6 1.11 MINERAL PROCESSING AND METALLURGICAL TESTWORK ...................... 6 1.12 MINERAL RESOURCE ESTIMATE ......................................................................... 7 1.13 MINERAL RESERVE ESTIMATE ............................................................................ 7 1.14 MINING METHODS .................................................................................................. 8 1.15 RECOVERY METHODS ............................................................................................ 9 1.16 PROJECT INFRASTRUCTURE .............................................................................. 10 1.17 MARKET STUDIES AND CONTRACTS ............................................................... 10 1.18 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT .......................................................................................... 10 1.19 CAPITAL AND OPERATING COSTS .................................................................... 11 1.19.1 Capital Costs ...................................................................................................... 11 1.19.2 Operating Costs .................................................................................................. 11 1.20 ECONOMIC ANALYSIS ......................................................................................... 12 1.21 INTERPRETATION AND CONCLUSIONS ........................................................... 14 1.22 RECOMMENDATIONS ........................................................................................... 15 1.22.1 Budget for Further Work ................................................................................... 16 2.0 INTRODUCTION........................................................................................................ 17 2.1 TERMS OF REFERENCE ........................................................................................ 18 2.2 QUALIFIED PERSONS ............................................................................................ 19 2.2.1 Site Visits ........................................................................................................... 19 2.2.2 Use of Report ..................................................................................................... 19 2.2.3 Sources of Information ...................................................................................... 19 2.3 PREVIOUS TECHNICAL REPORTS ...................................................................... 20 2.3.1 Eagle’s Nest ....................................................................................................... 20 2.3.2 Other Properties ................................................................................................. 21 2.4 UNITS AND CURRENCY ....................................................................................... 21 3.0 RELIANCE ON OTHER EXPERTS ........................................................................ 26 i 4.0 PROPERTY DESCRIPTION AND LOCATION .................................................... 27 4.1 LOCATION ............................................................................................................... 27 4.2 CLAIMS .................................................................................................................... 28 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ....................................................... 31 5.1 ACCESS .................................................................................................................... 31 5.2 CLIMATE AND PHYSIOGRAPHY ........................................................................ 31 5.3 INFRASTRUCTURE ................................................................................................ 32 5.4 FLORA AND FAUNA .............................................................................................. 32 6.0 HISTORY ..................................................................................................................... 33 7.0 GEOLOGICAL SETTING AND MINERALIZATION .......................................... 35 7.1 REGIONAL GEOLOGY ........................................................................................... 35 7.2 LOCAL GEOLOGY .................................................................................................. 36 7.3 LOCAL DEPOSITS AND MINERAL OCCURRENCES ....................................... 37 7.3.1 Eagle’s Nest Deposit .......................................................................................... 38 7.3.2 Blackbird Deposit .............................................................................................. 38 7.3.3 Triple J Gold Mineral Occurrence ..................................................................... 38 7.3.4 AT12 Nickel-Copper Mineral Occurrence ........................................................ 38 7.3.5 Thunderbird Vanadium-Titanium-Iron Mineral Occurrence ............................. 39 7.4 MINERALIZATION ................................................................................................. 39 7.4.1 MASSIVE SULPHIDES ................................................................................... 39 7.4.2 NET-TEXTURED AND DISSEMINATED SULPHIDES ............................... 39 8.0 DEPOSIT TYPES ........................................................................................................ 41 9.0 EXPLORATION .......................................................................................................... 42 9.1 AIRBORNE GEOPHYSICS ..................................................................................... 42 9.1.1 2003 Fugro Airborne Survey ............................................................................. 42 9.1.2 2007 Noront AeroTEM III Helicopter Survey................................................... 43 9.1.3 2008 VTEM Airborne Survey ........................................................................... 43 9.1.4 2009 Gravity Gradiometry Airborne Survey ..................................................... 43 9.1.5 2009 Z-Axis tripper Electromagnetic Geophysical Survey – Airborne Survey ................................................................................................ 44 9.1.6 2009 High Resolution Aeromagnetic Gradient and VLF-EM Airborne Surveys ............................................................................................... 44 9.2 GROUND GEOPHYSICS ......................................................................................... 44 9.2.1 2004 Ground Magnetic and Horizontal Loop EM Survey ................................. 45 9.2.2 2006 Condor Diamond Corp. In-fill Ground Magnetic Survey ......................... 45 9.2.3 2007 Magnetics, HLEM and Gravity Surveys over Eagle’s Nest Deposit ............................................................................................................... 45 9.2.4 2007 Gravity Survey .......................................................................................... 46 9.2.5 2008 Magnetic, VLF, HLEM, Gravity and Large Loop TDEM Surveys .............................................................................................................. 46 ii 9.2.6 2010 Surface EM – Crone SQUID system ........................................................ 46 9.2.7 2010 Surface EM – Lamontagne UTEM system ............................................... 46 9.2.8 2011 and 2012 Insight IP and Resistivity Surveys ............................................ 47 9.3 DIAMOND DRILLING ............................................................................................ 47 9.3.1
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