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Mineral Resource Estimate Technical Report for the Goldboro Property Guysborough County Nova Scotia Canada

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Mineral Resource Estimate Technical Report for the Goldboro Property Guysborough County Nova Scotia Canada MINERAL RESOURCE ESTIMATE TECHNICAL REPORT FOR THE GOLDBORO PROPERTY GUYSBOROUGH COUNTY NOVA SCOTIA CANADA For Orex Exploration Inc. Located at 45o 12’ 2.6” North Latitude 61o 39’ 2.0” West Longitude Prepared by Michael Cullen, P. Geo. and Stewart Yule, P.Geo Mercator Geological Services Limited Effective Date: February 11th, 2013 Report Date: April 15th, 2013 Goldboro Resource Estimate Report ii April, 2013 Table of Contents Summary ....................................................................................................................................... ix 1 Introduction and Terms of Reference ................................................................................. 1 1.1 General Terms .................................................................................................................. 1 1.2 Information Sources ......................................................................................................... 1 1.3 Site Visits ......................................................................................................................... 2 1.4 Abbreviations Used in this Report ................................................................................... 2 2 Reliance on Other Experts .................................................................................................... 4 3 Property Description and Location...................................................................................... 5 3.1 Access To Lands For Future Exploration and Development Purposes ............................ 5 3.2 Environmental Site Conditions ........................................................................................ 8 4 Accessibility, Climate, Local Resources, Infrastructure and ............................................ 9 Physiography ................................................................................................................................. 9 4.1 Accessibility ..................................................................................................................... 9 4.2 Climate and Physiography ............................................................................................... 9 4.2.1 Climate ...................................................................................................................... 9 4.2.2 Physiography and Vegetation ................................................................................... 9 4.3 Local Resources and Infrastructure ................................................................................ 10 4.3.1 Local Resources ...................................................................................................... 10 4.3.2 Site Infrastructure.................................................................................................... 10 5 History .................................................................................................................................. 14 5.1 Introduction .................................................................................................................... 14 5.2 Summarized Exploration History ................................................................................... 14 6 Geological Setting ................................................................................................................ 18 6.1 Regional Geology ........................................................................................................... 18 6.2 Local Geology ................................................................................................................ 22 6.2.1 Goldboro Property General Geological Setting ...................................................... 22 6.2.2 South Limb Geology ............................................................................................... 22 6.2.3 North Limb Geology ............................................................................................... 26 6.3 Mineralization ................................................................................................................ 27 65 Queen St. • Dartmouth, NS B2Y 1G4 • Ph.: (902) 463-1440 • Fax: (902) 463-1419 E-mail: [email protected] • Web: www.mercatorgeo.com Goldboro Resource Estimate Report iii April, 2013 6.4 Structure ......................................................................................................................... 29 6.4.1 Structural Geology and Deformation Phases .......................................................... 29 6.4.2 Structural Setting, Vein Styles and Genetic Model ................................................ 30 6.5 Alteration ........................................................................................................................ 30 7 Deposit Type ......................................................................................................................... 32 8 Exploration ........................................................................................................................... 33 8.1 1988 to 1991 Programs .................................................................................................. 33 8.2 1991 to 1993 Programs .................................................................................................. 36 8.3 1995 Program ................................................................................................................. 37 8.4 2004 to 2009 Programs .................................................................................................. 38 8.5 2009 to 2012 Programs .................................................................................................. 40 8.6 Summary of Orex Programs Between 1988 and 2011 ................................................... 41 9 Drilling .................................................................................................................................. 43 9.1 Introduction .................................................................................................................... 43 9.2 1988 and 1989 Programs ................................................................................................ 46 9.3 1991 and 1993 Programs ................................................................................................ 46 9.4 1995 Program ................................................................................................................. 48 9.5 2005 Program ................................................................................................................. 48 9.6 2008 Program ................................................................................................................. 49 9.7 2010 Programs ................................................................................................................ 50 9.7.1 Core Drilling ........................................................................................................... 50 9.7.2 Reverse Circulation Drilling ................................................................................... 51 9.8 2011 Program ................................................................................................................. 52 10 Sample Preparation, Analyses and Security ..................................................................... 54 10.1 Introduction .................................................................................................................... 54 10.2 1984 to 1985: Onitap Resources Inc. ............................................................................. 54 10.3 1987: Petromet Resources Inc.-Greenstrike Gold Corp. ................................................ 54 10.4 1987: Onitap Resources Inc. .......................................................................................... 55 10.5 1988-1990: Orex ............................................................................................................ 55 10.6 2005 and 2008: Orex ...................................................................................................... 56 10.7 2010-2011: Osisko ......................................................................................................... 57 65 Queen St. • Dartmouth, NS B2Y 1G4 • Ph.: (902) 463-1440 • Fax: (902) 463-1419 E-mail: [email protected] • Web: www.mercatorgeo.com Goldboro Resource Estimate Report iv April, 2013 10.8 Sampling Approach for Orex 2010-2011 Programs ...................................................... 58 10.9 Quality Control and Assurance Programs ...................................................................... 58 10.9.1 1984 to 1995 Programs ........................................................................................... 58 10.9.2 2005 to 2011 Programs ........................................................................................... 58 10.9.3 Certified Reference Materials ................................................................................. 62 10.9.4 Blank Samples ........................................................................................................ 67 10.9.5 Duplicate Coarse Reject Split Program .................................................................. 69 10.9.6 Quarter Core Field Duplicates ................................................................................ 69 10.9.7 Third Party Check Sample Program ......................................................................
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