National Instrument 43-101Technical Report
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NI43-101 Technical Report – Koper Lake Project National Instrument 43-101Technical Report Koper Lake Project McFauld’s Lake Area, Ontario, Canada Porcupine Mining Division, NTS 43D16 Geology Technical Report Prepared For KWG Resources Inc. By Alan Aubut P.Geo. August 29, 2013 PO Box 304, Nipigon, Ontario, P0T 2J0 Tel: (807) 887-2300 Email: [email protected] i NI43-101 Technical Report – Koper Lake Project ii NI43-101 Technical Report – Koper Lake Project Table of Contents Table of Contents ....................................................................................................................... iii List of Figures .............................................................................................................................. v List of Tables .............................................................................................................................. vi 1. Summary..............................................................................................................................1 1.1. Cautionary Note ............................................................................................................2 2. Introduction .........................................................................................................................3 3. Reliance on Other Experts ....................................................................................................3 4. Property Description and Location .......................................................................................3 4.1. Property History and Underlying Agreements ...............................................................3 4.2. Parties to the Agreements ............................................................................................7 5. Accessibility, Climate, Local Resources, Infrastructure and Physiography .............................8 5.1. Accessibility ..................................................................................................................8 5.2. Climate .........................................................................................................................8 5.3. Local resources .............................................................................................................8 5.4. Infrastructure ................................................................................................................9 5.5. Physiography ................................................................................................................9 6. History ...............................................................................................................................10 6.1. General .......................................................................................................................10 6.2. Discovery history.........................................................................................................11 7. Geological Setting and Mineralization ................................................................................12 7.1. Regional geology .........................................................................................................12 7.1.1. Precambrian Basement Complex .........................................................................12 7.1.2. Paleozoic Platform Rocks .....................................................................................13 7.1.3. Quaternary Cover ................................................................................................13 7.2. Local Geology ..............................................................................................................13 7.2.1. Volcanics ..............................................................................................................14 7.2.2. Ultramafic Rocks ..................................................................................................14 7.2.3. Felsic Intrusive Rocks ...........................................................................................14 7.2.4. Faulting ................................................................................................................14 7.3 Mineralisation .............................................................................................................15 7.3.1 Chromite Mineralization ......................................................................................15 8. Deposit Types ....................................................................................................................15 9. Exploration.........................................................................................................................15 10. Drilling ...............................................................................................................................19 10.1 2008 and 2010 Drilling ................................................................................................19 10.2 2013 Drilling ................................................................................................................19 11. Sample Preparation, Analyses and Security ........................................................................20 11.1. QA/QC Procedure .......................................................................................................20 12. Data Verification ................................................................................................................22 13. Mineral Processing and Metallurgical Testing ....................................................................22 iii NI43-101 Technical Report – Koper Lake Project 14. Mineral Resource and Mineral Reserve Estimates ..............................................................23 14.1. Mineral Resource Estimation ......................................................................................23 14.1.1. Resource Estimation Methodology ......................................................................23 14.1.1.1. Software Used and Data Validation ...............................................................23 14.1.1.2. Geological Domains ......................................................................................23 14.1.1.3. Drill Hole Database .......................................................................................24 14.1.1.4. Sample Selection...........................................................................................25 14.1.1.5. Compositing ..................................................................................................26 14.1.1.6. Exploratory Data Analysis .............................................................................26 14.1.1.7 Unfolding ......................................................................................................27 14.1.1.8 Grade Variography ........................................................................................28 14.1.1.9 Block Size Determination ..............................................................................28 14.1.1.10 Nearest Neighbour Block Model ...................................................................29 14.1.1.11 Ordinary Kriging Block Model ........................................................................30 14.1.1.12 Block Model Validation .................................................................................30 14.1.1.13 Model Verification ........................................................................................31 14.2. Mineral Resource Reporting ........................................................................................31 14.2.1. Resource Classification – Koper Lake Project chromite deposit ............................31 14.2.2. Risks and Opportunities .......................................................................................33 14.2.2.1. Risks..............................................................................................................33 14.2.2.2. Opportunities ...............................................................................................33 15. Mineral Reserve Estimates .................................................................................................33 16. Mining Methods.................................................................................................................33 17. Recovery Methods .............................................................................................................33 18. Project Infrastructure .........................................................................................................33 19. Market Studies and Contracts ............................................................................................33 20. Environmental Studies, Permitting and Social or Community Impact .................................34 21. Capital and Operating Costs ...............................................................................................34 22. Economic Analysis ..............................................................................................................34 23. Adjacent Properties ...........................................................................................................35 23.1. Noront Eagle 1, Eagle 2 and Blackbird deposits ...........................................................35 23.2. Big Daddy Chromite Deposit .......................................................................................36