Report to: Amended Technical Report on the Mactung Property Document No. 1053390100-REP-R0001-00 Suite 800, 555 West Hastings Street, Vancouver, British Columbia V6B 1M1 Phone: 604-408-3788 Fax: 604-408-3722 E-mail: [email protected] Report to: AMENDED TECHNICAL REPORT ON THE MACTURN PROPERTY EFFECTIVE DATE: APRIL 3, 2009 Prepared by: Honorio Narciso, P.Eng., Wardrop Engineering Inc. Iouri Iakovlev, P.Eng., Wardrop Engineering Inc. Marinus André de Ruijter, P.Eng., Wardrop Engineering Inc. Guy Impey, P.Eng., Wardrop Engineering Inc. Scott Cowie, MAusIMM, Wardrop Engineering Inc. Adrian Tanase, P.Eng., Wardrop Engineering Inc. Andy Nichols, P.Eng., MAN Mining Inc. Jay Collins, P.Eng., Merit Consultants International Inc. Nigel Goodall, Goodall Business Resource Management Ltd. Peter Lacroix, P.Eng., Scott Wilson Roscoe Postle Associates Inc. Richard Trimble, P.Eng., EBA Engineering Consultants Ltd. Suite 800, 555 West Hastings Street, Vancouver, British Columbia V6B 1M1 Phone: 604-408-3788 Fax: 604-408-3722 E-mail: [email protected] 1053390100-REP-R0001-00 TABLE OF CONTENTS 1.0 SUMMARY ....................................................................................................................... 1-1 1.1 GEOLOGY .......................................................................................................................... 1-2 1.1.1 MINERALIZATION ............................................................................................... 1-2 1.1.2 MINERAL RESOURCE ESTIMATE ......................................................................... 1-2 1.1.3 MINERAL RESERVE ESTIMATE ........................................................................... 1-3 1.2 MINING .............................................................................................................................. 1-3 1.3 METALLURGY AND MILL ...................................................................................................... 1-4 1.4 TAILINGS DISPOSAL ........................................................................................................... 1-6 1.5 INFRASTRUCTURE .............................................................................................................. 1-7 1.6 YUKON’S ASSESSMENT AND PERMITTING REGIME ............................................................... 1-8 1.7 RECLAMATION, DECOMMISSIONING, AND CLOSURE ............................................................. 1-8 1.8 PROJECT EXECUTION ......................................................................................................... 1-9 1.9 CAPITAL COST ESTIMATE ................................................................................................. 1-10 1.10 OPERATING COST ESTIMATE ............................................................................................ 1-11 1.11 PRELIMINARY MARKET REVIEW ........................................................................................ 1-11 1.11.1 PRODUCTION AND SUPPLY .............................................................................. 1-11 1.11.2 CONSUMPTION................................................................................................ 1-12 1.11.3 PRICE STRUCTURES ....................................................................................... 1-12 1.11.4 OPPORTUNITY FOR NEW PRODUCERS ............................................................. 1-13 1.11.5 PRELIMINARY MARKET REVIEW CONCLUSIONS................................................. 1-14 1.12 FINANCIAL ANALYSIS ........................................................................................................ 1-14 1.13 RISK AND MITIGATION ...................................................................................................... 1-16 1.14 PROJECT OPPORTUNITIES ................................................................................................ 1-17 1.15 CONCLUSIONS AND RECOMMENDATIONS .......................................................................... 1-19 2.0 INTRODUCTION .............................................................................................................. 2-1 3.0 RELIANCE ON OTHER EXPERTS .................................................................................. 3-1 3.1 GEOLOGY, MINERAL RESOURCES, AND RELATED INFORMATION .......................................... 3-1 3.2 MARKET REVIEW AND METAL PRICE FORECASTS ................................................................ 3-1 3.3 CONSTRUCTION MANAGEMENT COST ................................................................................. 3-1 3.4 TAILINGS DISPOSAL ........................................................................................................... 3-2 3.5 YUKON ASSESSMENT & PERMITTING REGIME/RECLAMATION, DECOMMISSIONING & CLOSURE .......................................................................................................................... 3-2 4.0 PROPERTY DESCRIPTION AND LOCATION ................................................................ 4-1 4.1 CLAIM STATUS ................................................................................................................... 4-2 ii 1053390100-REP-R0001-00 4.2 ROYALTIES ........................................................................................................................ 4-2 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY ............................................................................................................. 5-1 5.1 ACCESS ............................................................................................................................. 5-1 5.2 CLIMATE ............................................................................................................................ 5-1 5.3 LOCAL RESOURCES ........................................................................................................... 5-2 5.4 INFRASTRUCTURE .............................................................................................................. 5-2 5.5 PHYSIOGRAPHY ................................................................................................................. 5-2 6.0 HISTORY .......................................................................................................................... 6-1 6.1 1962 – 1972 ...................................................................................................................... 6-1 6.2 1973 – 1980 ...................................................................................................................... 6-1 6.3 1981 – 1985 ...................................................................................................................... 6-1 6.4 1986 – 1996 ...................................................................................................................... 6-2 6.5 1997 – 2007 ...................................................................................................................... 6-2 6.6 HISTORICAL MINERAL RESOURCE ESTIMATES ..................................................................... 6-4 7.0 GEOLOGICAL SETTING ................................................................................................. 7-1 7.1 REGIONAL GEOLOGY.......................................................................................................... 7-1 7.2 LOCAL GEOLOGY ............................................................................................................... 7-2 7.3 PROPERTY GEOLOGY ......................................................................................................... 7-2 8.0 DEPOSIT TYPES ............................................................................................................. 8-1 9.0 MINERALIZATION ........................................................................................................... 9-1 10.0 EXPLORATION .............................................................................................................. 10-1 11.0 DRILLING ....................................................................................................................... 11-1 12.0 SAMPLING METHOD AND APPROACH ...................................................................... 12-1 12.1 1968 – 1983 .................................................................................................................... 12-1 12.2 2005 ............................................................................................................................... 12-1 12.3 BULK SAMPLES ................................................................................................................ 12-2 13.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY ............................................ 13-1 13.1 1968-1980 ...................................................................................................................... 13-1 13.2 2005 ............................................................................................................................... 13-1 13.3 DUPLICATES .................................................................................................................... 13-1 14.0 DATA VERIFICATION ................................................................................................... 14-1 14.1 2005 DATA VERIFICATION ................................................................................................ 14-1 14.2 SCOTT WILSON RPA