Bomboré Gold Project Burkina Faso
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NI 43-101 TECHNICAL REPORT FEASIBILITY STUDY OF THE BOMBORÉ GOLD PROJECT BURKINA FASO Prepared by Lycopodium Minerals Canada Ltd in accordance with the requirements of National Instrument 43-101, “Standards of Disclosure for Mineral Project”, of the Canadian Securities Administrators Qualified Persons: Neil Lincoln, P.Eng., VP Business Development and Studies, Lycopodium Minerals Canada Ltd. Alan Turner, CEng., Principal Mining Engineer, AMC Consultants Jean-Sebastien Houle, P.Eng., Project Director, WSP Canada Inc. Tudorel Ciuculescu, P.Geo., Senior Geologist, Roscoe Postle Associates Inc. José Texidor Carlsson, P.Geo., Senior Geologist, Roscoe Postle Associates Inc. Thomas Kerr, P.Eng., Senior Executive Project Engineer, Knight Piésold Consulting File Location: 16.04 Report Date : 23 August, 2018 Rev: 0 Lycopodium Minerals Canada, 5060 Spectrum Way, Suite 400, Mississauga, Ontario L4W 5N5 BOMBORÉ GOLD PROJECT l limon NI 43-101 TECHNICAL REPORT Table of Contents 1.0 SUMMARY 1.1 1.1 Introduction 1.1 1.2 Project Description and Ownership 1.1 1.3 Geology and Mineralization 1.4 1.4 Exploration Status 1.4 1.5 Mineral Resources 1.5 1.6 Mineral Reserves 1.6 1.7 Mining 1.8 1.8 Metallurgy 1.8 1.9 Process Plant 1.10 1.10 Services and Infrastructure 1.13 1.11 Environmental and Social Impact 1.16 1.11.1 Environmental and Social Management Plan 1.17 1.11.2 Resettlement Action Plan (RAP) 1.17 1.11.3 Closure and Reclamation 1.17 1.12 Capital and Operating Costs 1.18 1.12.1 Capital Costs 1.18 1.12.2 Operating Costs 1.19 1.13 Economic Analysis 1.19 1.13.1 Project Upfront Capital Costs 1.21 1.13.2 Sensitivity Analysis 1.22 1.14 Conclusions and Recommendations 1.23 2.0 INTRODUCTION 2.1 2.1 Terms of Reference and Purpose of this Report 2.1 2.2 Site Visits 2.2 2.3 Abbreviations 2.3 3.0 RELIANCE ON OTHER EXPERTS 3.1 3.1 Legal Standing of Tenements 3.1 3.2 Pit Slope Design Recommendations for Saprolite 3.1 3.3 Tax 3.1 4.0 PROPERTY DESCRIPTION AND LOCATION 4.1 4.1 Property Location 4.1 4.2 Land Tenure 4.1 4.3 Underlying Agreements 4.10 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY 5.1 5.1 Accessibility 5.1 5.2 Climate 5.1 5.3 Local Infrastructure and Resources 5.1 5.4 Physiography 5.2 6.0 HISTORY 6.1 6.1 Exploration History 6.1 6.1.1 Exploration by GMC 1989-1994 6.1 5088\16.04\5088-REP-001 August 2018 Lycopodium Minerals Canada Ltd BOMBORÉ GOLD PROJECT l limon NI 43-101 TECHNICAL REPORT 6.1.2 Exploration by Channel 1994-2000 6.1 6.2 Previous Mineral Resource Estimates 6.2 7.0 GEOLOGICAL SETTING AND MINERALIZATION 7.1 7.1 Regional Geology 7.1 7.2 Property Geology 7.4 7.2.1 Lithologies 7.7 7.2.2 Structural Geology 7.15 7.3 Mineralization 7.18 7.3.1 Sequence of Geological Events 7.20 8.0 DEPOSIT TYPES 8.1 9.0 EXPLORATION 9.1 9.1 Bomboré Exploration Permit 9.1 9.2 Bomboré I Exploration Permit 9.1 10.0 DRILLING 10.1 10.1 Drilling Programs 10.1 10.2 Drilling Procedures 10.4 10.2.1 Type of Drilling 10.4 10.2.2 Water Table Elevation and Sample Recovery 10.4 10.2.3 Borehole Orientation and Drilling Pattern 10.5 10.2.4 Planning and Borehole Implementation 10.5 10.2.5 Borehole Trajectory 10.6 10.2.6 Description of RC Cuttings 10.7 10.2.7 Description of drill core 10.8 10.2.8 RPA Comments 10.9 11.0 SAMPLE PREPARATION, ANALYSES AND SECURITY 11.1 11.1 Sampling and Analysis by Orezone 2003 to 2015 11.1 11.1.1 2003 RC Program 11.1 11.1.2 2005 to 2007 RC Programs 11.1 11.1.3 2008 Drilling Program 11.2 11.1.4 2010 to Present RC Drilling Programs 11.4 11.1.5 Certifications and Independence 11.9 11.2 Specific Gravity Data 11.10 11.3 Quality Assurance and Quality Control 11.13 11.3.1 LeachWELL QA/QC 11.15 11.4 RPA Comments 11.19 12.0 DATA VERIFICATION 12.1 12.1 Orezone Database Verification Procedures 12.1 12.2 Site Visit and Core Review 12.1 12.3 Assay Table Review 12.2 12.4 Basic Database Verification Tests 12.2 13.0 MINERAL PROCESSING AND METALLURGICAL TESTING 13.1 13.1 Introduction 13.1 13.2 Historical Testwork Programs 13.3 5088\16.04\5088-REP-001 August 2018 Lycopodium Minerals Canada Ltd BOMBORÉ GOLD PROJECT l limon NI 43-101 TECHNICAL REPORT 13.2.1 SGS/ITS 1997 13.3 13.2.2 Osborne 2008 Testwork Program 13.3 13.2.3 AMMTEC 2009 Testwork Program 13.5 13.2.4 McClelland 2012 Testwork Program 13.10 13.2.5 Phillips 2012 Testwork Program 13.22 13.2.6 Orezone 2012 Scrubbing Testwork Program 13.22 13.2.7 SGS 2013 Testwork Program 13.23 13.2.8 COREM 2013 Testwork Program 13.24 13.2.9 Met-Solve 2013/2014 Testwork Program 13.25 13.2.10 KCA 2014 Heap Leach (HL) Test Program 13.28 13.2.11 KCA 2014 Preliminary Hybrid Test Program 13.32 13.2.12 KCA 2014 Feasibility Study (FS) Hybrid Test Program 13.35 13.2.13 SGS 2014 Testwork Program 13.43 13.2.14 SGS 2016 Testwork Program 13.43 13.3 Most Recent Testwork Programs 13.44 13.3.1 SGS 2017/2018 Testwork Program 13.44 13.3.2 Outotec 2018 Testwork Program 13.47 13.4 Results Interpretation 13.48 13.4.1 Ore Characteristics 13.48 13.4.2 Grind Size Selection 13.49 13.4.3 Gold Extraction Model 13.50 13.4.4 Major Reagents Consumption 13.52 13.4.5 Summary of Metallurgical Design Criteria 13.54 13.5 Conclusions and Recommendations 13.55 13.5.1 Conclusions 13.55 13.5.2 Recommendations 13.55 14.0 MINERAL RESOURCE ESTIMATES 14.1 14.1 Summary 14.1 14.2 Description of Databases 14.3 14.3 Lithology and Mineralization Wireframes 14.9 14.3.1 Weathering Profile 14.9 14.3.2 Host Rock Lithology 14.10 14.3.3 Mineralization Wireframes 14.15 14.4 Mined Out Areas 14.18 14.5 Topography Models 14.20 14.6 Sample Statistics and Grade Capping 14.20 14.7 Compositing Methods 14.25 14.8 Bulk Density 14.27 14.9 Variography 14.27 14.9.1 North Model Area 14.27 14.9.2 South Model Area 14.31 14.9.3 Other Areas 14.34 14.10 Block Model Construction 14.34 14.11 Block Model Validation 14.38 14.12 Mineral Resource Classification Criteria 14.47 14.13 Responsibility for the Estimate 14.50 14.14 Cut-Off Grade and Resource Reporting 14.50 14.15 Mineral Resource Estimate 14.52 14.16 Comparison to Previous Estimate 14.53 5088\16.04\5088-REP-001 August 2018 Lycopodium Minerals Canada Ltd BOMBORÉ GOLD PROJECT l limon NI 43-101 TECHNICAL REPORT 15.0 MINERAL RESERVE ESTIMATES 15.1 15.1 Open-Pit Optimization 15.1 15.1.1 Optimization Block Models 15.1 15.1.2 Optimization Inputs 15.2 15.1.3 Sterilized Areas 15.5 15.1.4 Optimization Results 15.9 15.2 Open-pit Design 15.15 15.2.1 Reconciliation between Pit Optimization and Design 15.16 15.3 Mineral Reserve Estimate 15.17 16.0 MINING METHODS 16.1 16.1 Mine Planning 16.2 16.1.1 Material Types 16.2 16.1.2 Open Pit Design 16.3 16.1.3 In Pit Ramp Design 16.5 16.1.4 Surface Haul Roads 16.7 16.1.5 Grade Control 16.7 16.1.6 Pit De-Watering 16.8 16.1.7 Dust Control 16.8 16.2 Waste Dump and Stockpile Design 16.8 16.2.1 Design Parameters 16.9 16.2.2 Low Grade Stockpiles 16.10 16.2.3 Waste Management 16.10 16.2.4 ROM Stockpile 16.11 16.3 Detailed Mine Plan 16.11 16.3.1 Schedule Inputs 16.12 16.3.2 Mine Schedule Summary 16.13 16.3.3 Process Feed Schedule 16.16 16.3.4 Stockpiling Strategy 16.17 16.3.5 Waste Movement 16.19 16.3.6 Production Schedule Details 16.19 16.3.7 Equipment Requirements 16.22 16.3.8 Fuel Consumption 16.24 16.3.9 Surface Haul Road Development 16.25 16.3.10 Mining Personnel 16.25 16.4 Mineral Reserve Estimate and Mining - Risks & Opportunities 16.26 16.4.1 Risks 16.26 16.4.2 Opportunities 16.27 17.0 RECOVERY METHODS 17.1 17.1 Process Design 17.1 17.1.1 Selected Process Flowsheet 17.1 17.1.2 Key Process Design Criteria 17.6 17.2 Process and Plant Description 17.7 17.2.1 Introduction 17.7 17.2.2 Run of Mine Ore Receipt and Mill Feed 17.7 17.2.3 Grinding and Classification 17.8 17.2.4 CIL Circuit 17.8 17.2.5 Desorption and Carbon Regeneration 17.10 17.2.6 Electrowinning and Gold Room 17.11 5088\16.04\5088-REP-001 August 2018 Lycopodium Minerals Canada Ltd BOMBORÉ GOLD PROJECT l limon NI 43-101 TECHNICAL REPORT 17.2.7 Tailings Disposal 17.12 17.2.8 Event Pond 17.12 17.2.9 Reagents Mixing and Storage 17.12 17.2.10 Water Services 17.14 17.2.11 Plant Air Services 17.16 17.3 Water, Power and Reagent Consumption 17.16 17.3.1 Water Consumption 17.16 17.3.2 Energy Consumption 17.17 17.3.3 Reagent and Consumable Consumption 17.17 17.4 Plant Control System 17.18 17.4.1 General Overview 17.18 17.5 Sampling and Assaying 17.18 18.0 PROJECT INFRASTRUCTURE 18.1 18.1 Site Access 18.4 18.2 Accommodation 18.4 18.3 Mine Service Area 18.5 18.4 Site Buildings 18.5 18.5 Power Supply 18.6 18.6 Potable Water 18.7 18.7 Sewage & Waste Management 18.7 18.8 Communications 18.7 18.9 Fuel & Lubricant Supply 18.8 18.10 Site Security 18.8 18.11 Ouagadougou Facilities 18.8 18.12 Tailings Storage Facility 18.9 18.13 Site Water Management 18.15 19.0 MARKET STUDIES AND CONTRACTS 19.1 19.1 Product Sales 19.1 19.2 Major Operations Contracts 19.1 20.0 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT 20.1 20.1 Introduction 20.1 20.2 Regulatory and International Standards Requirements 20.1 20.2.1 Policies and Strategies for Environmental Protection 20.1 20.2.2 Legal Framework 20.2 20.2.3 Mining Code 20.3 20.2.4 Institutional Framework 20.4 20.2.5 Required Permits 20.5 20.3 Baseline Studies 20.7 20.3.1 Baseline Studies Conducted 20.7 20.3.2 Description of the Main Environmental and Social Components 20.9 20.4 Community Information and Consultation Program 20.12 20.5 Project Impacts, Risk Analysis, Environmental and Social Management Plan 20.14 20.5.1 Project Impacts 20.14 20.5.2 Risk Analysis 20.15 20.5.3 Environmental and Social Management Plan 20.16 20.6 Resettlement 20.18 5088\16.04\5088-REP-001 August 2018 Lycopodium