Certej Updated Definitive Feasibility Study Summary Technical Report Authors:- Patrick Forward February 26th 2009 Neil Liddell Tony Jackson Certej Updated Definitive Feasibility Study Summary Technical Report Contents 3. SUMMARY ................................................................................................................................................................... 1 4. INTRODUCTION AND TERMS OF REFERENCE ................................................................................................................ 6 5. RELIANCE ON OTHER EXPERTS ...................................................................................................................................... 7 6. PROPERTY DESCRIPTION AND LOCATION ..................................................................................................................... 8 7. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY ............................................. 10 7.1. ACCESS ............................................................................................................................................................. 10 7.2. CLIMATE ........................................................................................................................................................... 10 7.3. LOCAL RESOURCES AND INFRASTRUCTURE ....................................................................................................... 10 7.4. PHYSIOGRAPHY ................................................................................................................................................ 11 8. HISTORY ..................................................................................................................................................................... 14 8.1. PRIOR TO WORLD WAR 2 .................................................................................................................................. 14 8.2. POST WORLD WAR 2 ........................................................................................................................................ 15 8.3. RECENT HISTORY .............................................................................................................................................. 16 8.3.1. HISTORICAL INFORMATION ON EXISTING DUMPS ............................................................................................ 19 9. GEOLOGICAL SETTING ................................................................................................................................................ 20 9.1. REGIONAL GEOLOGY......................................................................................................................................... 20 9.2. LOCAL GEOLOGY ............................................................................................................................................... 21 10. DEPOSIT TYPES .......................................................................................................................................................... 27 11. MINERALISATION ....................................................................................................................................................... 28 11.1. ALTERATION ..................................................................................................................................................... 30 11.2. DEPOSIT ZONATION .......................................................................................................................................... 31 12. EXPLORATION ............................................................................................................................................................ 36 12.1. EXPLORATION BY PREVIOUS OWNERS .............................................................................................................. 36 12.2. EXPLORATION BY CURRENT OWNERS ............................................................................................................... 36 12.3. EXPLORATION MANAGED BY RSG GLOBAL – 2000 TO 2003 ............................................................................... 36 12.4. INVOLVEMENT OF OTHER CONSULTANTS – NOVEMBER 2003 TO OCTOBER 2004 ............................................. 36 12.5. MANAGEMENT BY EUROPEAN GOLDFIELDS TECHNICAL TEAM ......................................................................... 37 12.5.1. EXPLORATION OF EXISTING DUMPS .............................................................................................................. 37 13. DRILLING .................................................................................................................................................................... 39 13.1. DRILLING OF DEPOSIT ....................................................................................................................................... 39 13.2. DRILLING OF EXISTING DUMPS ......................................................................................................................... 39 14. SAMPLING METHOD AND APPROACH ........................................................................................................................ 42 14.1. DUMP SAMPLING APPROACH ........................................................................................................................... 43 14.1.1. SURFACE CHANNEL ........................................................................................................................................ 43 14.1.2. REVERSE CIRCULATION .................................................................................................................................. 44 15. SAMPLE PREPARATION, ANALYSES AND SECURITY ..................................................................................................... 47 15.1. DUMP SAMPLE PREPARATION, ANALYSIS AND SECURITY ................................................................................. 49 16. DATA VERIFICATION ................................................................................................................................................... 51 16.1. ACCURACY ........................................................................................................................................................ 51 16.2. ASSAY PRECISION ............................................................................................................................................. 52 16.3. DATA VERIFICATION FOR THE DUMP EXPLORATION DATABASE. ...................................................................... 53 16.3.1. ASSAY STANDARDS ....................................................................................................................................... 53 16.3.2. DUMP FIELD DUPLICATES (RC AND CHANNEL) ............................................................................................... 54 16.3.3. LABORATORY REPLICATES AND REPEATS ....................................................................................................... 57 16.3.4. LABORATORY PREPARATION REPEATS – SPLITS (FOR 2004-2005) .................................................................. 59 16.3.5. LABORATORY BLANKS ................................................................................................................................... 61 16.3.6. INTER-LABORATORY ROUND ROBIN .............................................................................................................. 61 16.3.7. CONCLUSIONS DUMP QAQC .......................................................................................................................... 61 17. ADJACENT PROPERTIES .............................................................................................................................................. 63 18. MINERAL PROCESSING AND METALLURGICAL TESTING .............................................................................................. 64 Certej Updated Definitive Feasibility Study Summary Technical Report 18.1. INTRODUCTION ................................................................................................................................................ 64 18.2. MINERALOGY ................................................................................................................................................... 64 18.2.1. INTRODUCTION ............................................................................................................................................. 64 18.2.2. MINERALOGY PRE 2004 ................................................................................................................................. 65 18.2.3. DEPORTMENT OF GOLD AND SILVER IN CERTEJ FLOTATION CONCENTRATES AND TAILS ............................... 66 18.2.4. COMMENTS AND OBSERVATIONS ................................................................................................................. 72 18.3. METALLURGICAL TESTWORK ............................................................................................................................ 73 18.3.1. HISTORIC METALLURGICAL TESTWORK (PRE 2005) ........................................................................................ 73 18.3.2. 2005 TESTWORK SAMPLES ............................................................................................................................ 73 18.3.3. 2005 FLOTATION