NI43-101 Technical Report – Big Daddy Chromite Deposit National Instrument 43-101Technical Report Big Daddy chromite deposit McFaulds Lake Area, Ontario, Canada Porcupine Mining Division, NTS 43D16 Mineral Resource Estimation Revised Technical Report UTM: Zone 16, 551333m E, 5845928m N, NAD83 Prepared For KWG Resources Inc. By Alan Aubut P.Geo. May 29, 2014 PO Box 304, Nipigon, Ontario, P0T 2J0 Tel: (807) 887-2300 Email: [email protected] i NI43-101 Technical Report – Big Daddy Chromite Deposit ii NI43-101 Technical Report – Big Daddy Chromite Deposit 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 ....................................................................................................... 5 4.1. Property History and Underlying Agreements .............................................................................. 6 4.2. Property History and Underlying Agreements .............................................................................. 6 4.3. Parties to the Agreements ............................................................................................................ 8 5. Accessibility, Climate, Local Resources, Infrastructure and Physiography ........................................... 8 5.1. Accessibility ................................................................................................................................... 8 5.2. Climate .......................................................................................................................................... 8 5.3. Local resources .............................................................................................................................. 9 5.4. Infrastructure ................................................................................................................................ 9 5.5. Physiography ................................................................................................................................. 9 6. History ................................................................................................................................................. 10 6.1. General ........................................................................................................................................ 10 6.2. Discovery history ......................................................................................................................... 10 7. Geological Setting and Mineralization ................................................................................................ 12 7.1. Regional geology ......................................................................................................................... 12 7.1.1. Precambrian Basement Complex ........................................................................................ 12 7.1.2. Paleozoic Platform Rocks .................................................................................................... 12 7.1.3. Quaternary Cover ................................................................................................................ 12 7.2. Local Geology .............................................................................................................................. 13 7.2.1. Volcanics ............................................................................................................................. 13 7.2.2. Ultramafic Rocks ................................................................................................................. 14 7.2.3. Felsic Intrusive Rocks .......................................................................................................... 14 7.2.4. Faulting ................................................................................................................................ 14 7.3 Mineralisation ............................................................................................................................. 14 7.3.1 Chromite Mineralization ..................................................................................................... 14 8. Deposit Types ...................................................................................................................................... 15 9. Exploration .......................................................................................................................................... 16 10. Drilling ................................................................................................................................................. 16 11. Sample Preparation, Analyses and Security........................................................................................ 19 11.1. QA/QC Procedure ....................................................................................................................... 19 12. Data Verification ................................................................................................................................. 19 13. Mineral Processing and Metallurgical Testing .................................................................................... 20 13.1.1. Methods Used ..................................................................................................................... 20 13.1.2. Results ................................................................................................................................. 20 13.2. SGS Mineral Services Testing ...................................................................................................... 21 13.2.1. Methods Used ..................................................................................................................... 21 13.2.2. Results ................................................................................................................................. 21 13.3. Xstrata Process Support .............................................................................................................. 22 iii NI43-101 Technical Report – Big Daddy Chromite Deposit 13.3.1. Campaign One (2011) ......................................................................................................... 22 13.3.1.1. Crushing and Screening ....................................................................................................... 22 13.3.1.1.1. Methods Used ............................................................................................................. 22 13.3.1.1.2. Results ......................................................................................................................... 23 13.3.1.2. Metallurgical Testing ........................................................................................................... 23 13.3.1.2.1. Methods Used ............................................................................................................. 23 13.3.1.2.2. Results ......................................................................................................................... 23 13.3.2. Campaign 2 (2013) .............................................................................................................. 23 13.3.2.1. Metallurgical Testing ........................................................................................................... 23 13.3.2.2. Results ................................................................................................................................. 24 14. Mineral Resource and Mineral Reserve Estimates ............................................................................. 24 14.1. Mineral Resource Estimation ...................................................................................................... 24 14.1.1. Resource Estimation Methodology ..................................................................................... 24 14.1.1.1. Software Used and Data Validation ............................................................................ 24 13.1.1.2. Geological Domains..................................................................................................... 26 13.1.1.3. Drill Hole Database...................................................................................................... 27 13.1.1.4. Sample Selection ......................................................................................................... 28 13.1.1.5. Compositing