Technical Report for the Certej Project, Romania Effective Date: February 2014 Prepared By: Richard Alexander, P.Eng Stephen Juras, PhD, P.Geo Richard Miller, P.Eng Robin Kalanchey, P.Eng TECHNICAL REPORT CERTEJ PROJECT, ROMANIA Effective Date: February 21, 2014 Prepared by: Rick Alexander, P.Eng. Stephen Juras, P. Geo. Richard Miller, P. Eng. Robin Kalanchey, P. Eng. C E R T E J P ROJECT , R O MANIA T E C H N I C A L R EPORT Contents Table of Contents SECTION • 1 SUMMARY ................................................................................................................ 1-1 1.1 Terms of Reference ...................................................................................... 1-1 1.2 Project Description ....................................................................................... 1-1 1.3 Drilling, Sampling and Analyses ................................................................... 1-3 1.4 Mineral Processing & Gold Recovery ........................................................... 1-3 1.5 Mineral Resource Estimates ........................................................................ 1-4 1.6 Mineral Reserve Estimates .......................................................................... 1-5 1.7 Project Economics ........................................................................................ 1-6 1.8 Conclusion and Recommendations .............................................................. 1-8 SECTION • 2 INTRODUCTION AND TERMS OF REFERENCE ................................................... 2-1 SECTION • 3 RELIANCE ON OTHER EXPERTS .......................................................................... 3-1 SECTION • 4 PROPERTY LOCATION AND DESCRIPTION ........................................................ 4-1 4.1 Property Location ......................................................................................... 4-1 4.2 Land Tenure ................................................................................................. 4-1 4.3 Royalties ....................................................................................................... 4-4 4.4 Environmental Liabilities ............................................................................... 4-4 4.5 Permits and Agreements .............................................................................. 4-4 SECTION • 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ...................................................................................................... 5-1 5.1 Physiography ................................................................................................ 5-1 5.2 Climate.......................................................................................................... 5-1 5.3 Accessibility .................................................................................................. 5-1 5.4 Local Resources and Infrastructure ............................................................. 5-2 5.5 Infrastructure ................................................................................................ 5-3 SECTION • 6 HISTORY ................................................................................................................... 6-1 6.1 Historical Mining and Exploration Activities .................................................. 6-1 6.2 Recent Mining and Exploration Activities ..................................................... 6-3 SECTION • 7 GEOLOGICAL SETTING AND MINERALIZATION ................................................. 7-1 7.1 Regional Geology ......................................................................................... 7-1 SECTION • 8 DEPOSIT TYPES ...................................................................................................... 8-1 SECTION • 9 EXPLORATION ......................................................................................................... 9-1 SECTION • 10 DRILLING ................................................................................................................ 10-1 SECTION • 11 SAMPLE PREPARATON, ANALYSES AND SECURITY .................................... 11-1 11.1 Sampling Method and Approach ................................................................ 11-1 11.2 Sample Preparation and Assaying ............................................................. 11-1 11.3 QA/QC Program ......................................................................................... 11-2 11.4 Concluding Statement ................................................................................ 11-7 SECTION • 12 DATA VERIFICATION ............................................................................................ 12-1 TOC ii REV A C E R T E J P ROJECT , R O MANIA T E C H N I C A L R EPORT SECTION • 13 MINERAL PROCESSING AND METALLURGICAL TESTWORK ........................ 13-1 13.1 Introduction ................................................................................................. 13-1 13.2 Mineralogy .................................................................................................. 13-2 13.3 Distribution of Gold and Silver in Certej Ores ............................................. 13-6 13.4 Mineral Processing Testwork ..................................................................... 13-9 13.5 Metallurgical Testwork – Pressure Oxidation ........................................... 13-13 13.6 Liquid Solids Separation Testing For Pressure Oxidation Products ........ 13-24 13.7 Supplementary Flotation Testwork ........................................................... 13-25 13.8 Ore Variability Testing .............................................................................. 13-25 13.9 Summary of Recoveries ........................................................................... 13-26 13.10 Technical Uncertainties and Future Work ................................................ 13-27 SECTION • 14 MINERAL RESOURCE ESTIMATES ..................................................................... 14-1 14.1 Geologic Models ......................................................................................... 14-1 14.2 Data Analysis .............................................................................................. 14-3 14.3 Model Setup ............................................................................................... 14-4 14.4 Estimation ................................................................................................... 14-5 14.5 Validation .................................................................................................... 14-6 14.6 Mineral Resource Classification ............................................................... 14-12 14.7 Mineral Resource Summary ..................................................................... 14-13 SECTION • 15 MINERAL RESERVE ESTIMATES ........................................................................ 15-1 15.1 Mineral Reserve Classification and Summary ........................................... 15-1 15.2 Pit Optimization Parameters ....................................................................... 15-2 15.3 Final Pit Design .......................................................................................... 15-3 15.4 Cut-off Grade .............................................................................................. 15-6 15.5 Factors Affecting the Mineral Reserve Estimate ........................................ 15-7 SECTION • 16 MINING METHODS ................................................................................................. 16-1 16.1 Introduction ................................................................................................. 16-1 16.2 Geotech Parameters .................................................................................. 16-1 16.3 Mining Phases ............................................................................................ 16-3 16.4 Mining Schedule ......................................................................................... 16-7 16.5 Waste Rock and Low Grade Ore Management ....................................... 16-11 16.6 Mining Equipment Selection ..................................................................... 16-12 16.7 Mining Operating Costs ............................................................................ 16-21 SECTION • 17 RECOVERY METHODS ......................................................................................... 17-1 17.1 Introduction ................................................................................................. 17-1 17.2 Previous Recovery Methods ...................................................................... 17-2 17.3 Pressure Oxidation Process Selection ....................................................... 17-2 17.4 Design Basis ............................................................................................... 17-6 17.5 Process Plant Description .......................................................................... 17-8 17.6 Process Consumables, Reagents and Chemicals ................................... 17-19 17.7 Energy and Water Requirements ............................................................. 17-22 SECTION • 18 PROJECT INFRASTRUCTURE ............................................................................. 18-1 18.1 Transportation and Logistics .....................................................................