FOCUS REPORT TOUQUOY GOLD PROJECT MOOSE RIVER GOLD MINES, NOVA SCOTIA Prepared For: DDV Gold Limited REPORT TEXT NOVEMBER 2007 Prepared by: REF. NO. 820933 (8) Conestoga-Rovers This report is printed on recycled paper. & Associates 31 Gloster Court Dartmouth, Nova Scotia Canada, B3B 1X9 Telephone: 902.468.1248 Facsimile: 902.468.2207 Worldwide Engineering, Environmental, Construction, and IT Services TABLE OF CONTENTS Page EXECUTIVE SUMMARY.................................................................................................................... i 1.0 INTRODUCTION ...................................................................................................................1 1.1 BACKGROUND AND PURPOSE.....................................................................1 1.2 PROJECT DESCRIPTION...................................................................................1 1.3 PROJECT LOCATION........................................................................................3 1.4 SCOPE OF THE FOCUS REPORT ....................................................................3 1.5 TERMS OF REFERENCE CONCORDANCE ..................................................3 1.6 ORGANIZATION OF THE FOCUS REPORT.................................................6 2.0 PROJECT DESIGN PROCESS ...............................................................................................9 2.1 OVERVIEW ..........................................................................................................9 2.2 DESIGN PRINCIPLES........................................................................................9 2.3 MINERAL RESOURCES..................................................................................10 2.4 TECHNICAL ASSESSMENT...........................................................................11 2.4.1 Mining Method..................................................................................................11 2.4.2 Processing Method............................................................................................11 2.4.3 Scale Of Operation ............................................................................................12 2.5 ECONOMIC ASSESSMENT............................................................................12 2.5.1 Capital Cost........................................................................................................12 2.5.2 Operating Cost...................................................................................................13 2.5.3 Financial Performance......................................................................................13 2.6 ENVIRONMENTAL ASSESSMENT..............................................................14 2.6.1 Assessment Process...........................................................................................14 2.6.2 Impact Management.........................................................................................15 2.7 PROJECT DESIGN REVIEW............................................................................15 2.8 OPEN PIT...........................................................................................................17 2.8.1 Location ..............................................................................................................17 2.8.2 Visual Impact.....................................................................................................17 2.8.3 Noise....................................................................................................................17 2.8.4 Air Quality..........................................................................................................18 2.8.5 Water Quality.....................................................................................................18 2.8.6 Recreational Value.............................................................................................18 2.8.7 Wilderness Experience......................................................................................19 2.8.8 Flora & Fauna.....................................................................................................19 2.8.9 Habitat.................................................................................................................19 2.8.10 Landscape...........................................................................................................19 2.8.11 Access..................................................................................................................20 2.8.12 Community ........................................................................................................20 2.9 WASTE ROCK STOCKPILE............................................................................20 2.9.1 Location ..............................................................................................................20 2.9.2 Visual Impact.....................................................................................................21 2.9.3 Noise....................................................................................................................21 2.9.4 Air Quality..........................................................................................................22 820933 (8) CONESTOGA-ROVERS &ASSOCIATES 2.9.5 Water Quality.....................................................................................................22 2.9.6 Recreational Value.............................................................................................22 2.9.7 Wilderness Experience......................................................................................22 2.9.8 Flora And Fauna................................................................................................22 2.9.9 Habitat.................................................................................................................23 2.9.10 Landscape...........................................................................................................23 2.9.11 Access..................................................................................................................23 2.9.12 Community ........................................................................................................23 2.10 PROCESS PLANT.............................................................................................23 2.10.1 Location ..............................................................................................................23 2.10.2 Visual Impact.....................................................................................................24 2.10.3 Noise....................................................................................................................25 2.10.4 Air Quality..........................................................................................................25 2.10.5 Water Quality.....................................................................................................25 2.10.6 Recreational Value.............................................................................................26 2.10.7 Wilderness Experience......................................................................................26 2.10.8 Flora And Fauna................................................................................................26 2.10.9 Habitat.................................................................................................................26 2.10.10 Landscape...........................................................................................................26 2.10.11 Access..................................................................................................................27 2.10.12 Community ........................................................................................................27 2.11 TAILINGS MANAGEMENT FACILITY........................................................27 2.11.1 Tmf Risk Management......................................................................................27 2.11.2 Location ..............................................................................................................29 2.11.3 Visual Impact.....................................................................................................30 2.11.4 Noise....................................................................................................................30 2.11.5 Air Quality..........................................................................................................30 2.11.6 Water Quality.....................................................................................................31 2.11.7 Discharge ............................................................................................................31 2.11.8 Recreational Value.............................................................................................32 2.11.9 Wilderness Experience......................................................................................32 2.11.10 Flora And Fauna................................................................................................32 2.11.11 Habitat.................................................................................................................32 2.11.12 Landscape...........................................................................................................32 2.11.13 Community ........................................................................................................33