Report to: Technical Report on the Magino Property, Wawa, Ontario Document No. 1295890100-REP-R0001-02 1295890100-REP-R0001-02 Report to: TECHNICAL REPORT ON THE MAGINO PROPERTY,WAWA,ONTARIO EFFECTIVE DATE:OCTOBER 4, 2012 Prepared by Patrick Huxtable, MAIG (RPGeo) Todd McCracken, P.Geo. Todd Kanhai, P.Eng. PT/JW/jc 1295890100-REP-R0001-02 Report to: TECHNICAL REPORT ON THE MAGINO PROPERTY,WAWA,ONTARIO EFFECTIVE DATE:OCTOBER 4, 2012 “Original document signed by Prepared by Patrick Huxtable, MAIG (RPGeo)” Date October 4, 2012 Patrick Huxtable, MAIG (RPGeo) “Original document signed by Prepared by Todd McCracken, P.Geo.” Date October 4, 2012 Todd McCracken, P.Geo. “Original document signed by Prepared by Todd Kanhai, P.Eng.” Date October 4, 2012 Todd Kanhai, P.Eng. “Original document signed by Reviewed by Jeff Wilson, Ph.D., P.Geo.” Date October 4, 2012 Jeff Wilson, Ph.D., P.Geo. “Original document signed by Authorized by Jeff Wilson, Ph.D., P.Geo.” Date October 4, 2012 Jeff Wilson, Ph.D., P.Geo. PT/JW/jc Suite 900, 330 Bay Street, Toronto, Ontario M5H 2S8 Phone: 416-368-9080 Fax: 416-368-1963 1295890100-REP-R0001-02 REVISION HISTORY REV. PREPARED BY REVIEWED BY APPROVED BY NO ISSUE DATE AND DATE AND DATE AND DATE DESCRIPTION OF REVISION 00 2012/09/20 Patrick Huxtable Jeff Wilson Jeff Wilson Draft to Client for review. Todd McCracken 01 2012/09/27 Patrick Huxtable Jeff Wilson Jeff Wilson Draft to Client for review. Todd McCracken 02 2012/10/04 Patrick Huxtable Jeff Wilson Jeff Wilson Final to Client. Todd McCracken Todd Kanhai 1295890100-REP-R0001-02 TABLE OF CONTENTS 1.0 SUMMARY ..........................................................................................................................1 1.1 INTRODUCTION .....................................................................................................................1 1.2 PROPERTY DESCRIPTION AND OWNERSHIP............................................................................1 1.3 GEOLOGY AND MINERALIZATION ............................................................................................2 1.4 MINERAL RESOURCE ESTIMATE.............................................................................................2 1.5 RECOMMENDATIONS .............................................................................................................5 1.5.1 DRILLING .............................................................................................................5 1.5.2 PREFEASIBILITY STUDY........................................................................................5 2.0 INTRODUCTION .................................................................................................................6 3.0 RELIANCE ON OTHER EXPERTS.....................................................................................7 4.0 PROPERTY DESCRIPTION AND LOCATION ...................................................................8 4.1 LOCATION.............................................................................................................................8 4.2 STATUS OF THE MINING TITLES .............................................................................................9 4.3 ENVIRONMENTAL MATTERS .................................................................................................12 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY.............................................................................................................. 14 5.1 ACCESSIBILITY....................................................................................................................14 5.2 CLIMATE.............................................................................................................................14 5.3 LOCAL RESOURCES ............................................................................................................14 5.4 INFRASTRUCTURE ...............................................................................................................14 5.5 PHYSIOGRAPHY ..................................................................................................................15 6.0 HISTORY...........................................................................................................................17 6.1 1950-1999.........................................................................................................................17 6.2 2000-2010 GOLDEN GOOSE ...............................................................................................22 6.2.1 2000.................................................................................................................22 6.2.2 2001.................................................................................................................23 6.2.3 2002.................................................................................................................24 6.2.4 2004.................................................................................................................24 6.2.5 2006.................................................................................................................25 6.2.6 2007.................................................................................................................26 6.2.7 2008.................................................................................................................27 6.2.8 2009.................................................................................................................28 6.2.9 2010.................................................................................................................28 7.0 GEOLOGICAL SETTING AND MINERALIZATION.......................................................... 30 7.1 THE ARCHEAN SUPERIOR PROVINCE ...................................................................................30 7.2 THE WAWA SUBPROVINCE ..................................................................................................30 i 1295890100-REP-R0001-02 7.3 THE MICHIPICOTEN GREENSTONE BELT...............................................................................33 7.4 THE GEOLOGY OF THE MAGINO MINE AREA .........................................................................35 7.5 GOLD MINERALIZATION .......................................................................................................38 7.6 STRUCTURES ASSOCIATED WITH GOLD MINERALIZATION......................................................40 7.7 CURRENT VIEW ON MINERALIZATION CONTROLS AND IDENTIFICATION OF MINERALIZED MATERIAL ZONES................................................................................................................41 8.0 DEPOSIT TYPES .............................................................................................................. 44 9.0 EXPLORATION................................................................................................................. 48 10.0 DRILLING.......................................................................................................................... 49 10.1.1 TYPE AND EXTENT .............................................................................................49 10.1.2 DRILL COLLARS .................................................................................................56 10.1.3 DOWN-HOLE SURVEYS.......................................................................................56 10.1.4 GEOLOGICAL LOGGING ......................................................................................56 10.1.5 DRILLHOLE CASING............................................................................................59 10.1.6 2011/12 DIAMOND DRILLING RESULTS ...............................................................60 10.1.7 CORE RECOVERY ..............................................................................................67 10.1.8 SAMPLING METHOD ...........................................................................................67 10.1.9 DRILL PLAN .......................................................................................................68 11.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY............................................... 70 11.1 SAMPLE PREPARATION........................................................................................................70 11.2 LABORATORY FACILITIES.....................................................................................................70 11.2.1 ACTIVATION LABORATORIES LTD. .......................................................................70 11.2.2 ALS CHEMEX ....................................................................................................70 11.3 SAMPLE SPLITTING AND REDUCTION....................................................................................71 11.3.1 ACTIVATION LABORATORIES ...............................................................................71 11.3.2 ALS CHEMEX ....................................................................................................71 11.4 ANALYTICAL PROCEDURES..................................................................................................71 11.4.1 ACTIVATION LABORATORIES ...............................................................................71 11.4.2 ALS CHEMEX ....................................................................................................72 11.4.3 COARSE REJECT AND PULP STORAGE ................................................................73