NI 43-101 TECHNICAL REPORT AND MINERAL RESOURCE

Transcription

NI 43-101 TECHNICAL REPORT AND MINERAL
RESOURCE ESTIMATE FOR THE THOR DEPOSIT,
VIKING PROJECT
White Bay Area, Newfoundland and Labrador, Canada
Prepared For
Anaconda Mining Inc.
By
David A. Copeland, M.Sc., P. Geo
Shane Ebert, Ph. D., P. Geo.
Gary Giroux, MASc., P. Eng.
Effective Date: August 29, 2016
Publication Date: August 29, 2016
NI 43-101 Technical Report and Mineral Resource Estimate
For the Thor Deposit, Viking Project - White Bay, NL
Contents
1.0
2.0
3.0
4.0
Summary ....................................................................................................................................... 8
Introduction ................................................................................................................................. 12
Reliance on Other Experts .......................................................................................................... 14
Property Description and Location ............................................................................................. 15
4.1
4.2
4.3
4.4
General ........................................................................................................................................ 15
Confirmation of Title .................................................................................................................. 16
Agreements with Other Parties ................................................................................................... 16
Summary of Exploration Title Information ................................................................................ 17
5.0
Accessibility, Climate, Local Resources, Infrastructure and Physiography ............................... 19
5.1
5.2
Accessibility................................................................................................................................ 19
Physiography and Climate .......................................................................................................... 19
5.2.1
5.2.2
5.3
Physiography....................................................................................................................... 19
Climate ................................................................................................................................ 19
Infrastructure and Local Resources............................................................................................. 20
6.0
History......................................................................................................................................... 21
6.1
6.2
Introduction ................................................................................................................................. 21
Historical Exploration ................................................................................................................. 24
6.2.1
6.2.2
6.2.3
6.2.4
6.2.5
7.0
7.1
7.2
7.3
7.4
7.5
7.6
8.0
9.0
Exploration Programs Completed Prior to 1987 ................................................................. 24
Exploration Programs Completed Between 1987 and 1990 ............................................... 24
Exploration Programs Completed Between 2006 and 2007 ............................................... 24
Viking Property Exploration Between 2008 and 2011 ....................................................... 24
Kramer Property Exploration Between 2009 and 2013 ...................................................... 26
Geological Setting and Mineralization ....................................................................................... 27
Lithotectonic Subdivisions Relative to the Viking Project ......................................................... 27
Regional Geology of White Bay Area ........................................................................................ 29
Property Geology ........................................................................................................................ 31
Description of Mineralization Styles .......................................................................................... 33
Description of the Thor Deposit.................................................................................................. 34
Other Mineralized Trends ........................................................................................................... 41
Deposit Type ............................................................................................................................... 44
Exploration.................................................................................................................................. 45
9.1
9.2
Introduction ................................................................................................................................. 45
Viking Property ........................................................................................................................... 45
9.2.1
2007-2008 Exploration Programs ....................................................................................... 45
3
9.2.2
9.2.3
9.2.4
9.3
2009 Exploration Program .................................................................................................. 46
Kramer Property.......................................................................................................................... 56
9.3.1
9.3.2
9.3.3
10.0
2009 Exploration Programs ................................................................................................ 56
2012 and 2013 Exploration Program .................................................................................. 57
Drilling ........................................................................................................................................ 59
10.1
10.2
10.3
10.4
General .................................................................................................................................... 63
Methodology ........................................................................................................................... 63
Comments on Core Recovery ................................................................................................. 64
Viking Property Drilling ......................................................................................................... 64
10.4.1
10.4.2
10.4.3
10.4.4
10.5
2008 Drilling Program ........................................................................................................ 64
Kramer Property Drilling ........................................................................................................ 73
10.5.1 2010 Drilling Program ........................................................................................................ 73
10.5.2 2013 Drilling Program ........................................................................................................ 73
11.0
Sampling Preparation and Security ............................................................................................. 75
11.1
11.2
11.3
12.0
12.1
12.2
12.3
Drilling and Trenching Programs............................................................................................ 75
Sample Preparation and Analyses ........................................................................................... 75
Security for All Northern Abitibi Programs............................................................................ 76
Data Verification ......................................................................................................................... 77
Review and Validation of Project Data Sets ........................................................................... 77
Site Visit by the Authors ......................................................................................................... 77
Quality Control and Quality Assurance (QA/QC) .................................................................. 78
12.3.1 Introduction ......................................................................................................................... 78
12.3.2 Certified Reference Material Program ................................................................................ 78
12.3.3 Blank Sample Programs ...................................................................................................... 79
12.3.4 Quarter Core Duplicate Split Program ................................................................................ 80
12.3.5 Check Sample Programs ..................................................................................................... 80
13.0
Mineral Processing and Metallurgical Testing ........................................................................... 81
14.0
Mineral Resource Estimate ......................................................................................................... 82
14.1
14.2
14.3
Data Analysis .......................................................................................................................... 82
Composites.................................................................................................................................. 86
Variography ................................................................................................................................ 87
4
14.4
14.5
14.6
14.7
14.8
15.0
16.0
16.1
Block Model............................................................................................................................ 88
Bulk Density ............................................................................................................................... 88
Grade Interpolation ..................................................................................................................... 89
Classification............................................................................................................................... 90
Model Verification ...................................................................................................................... 93
Adjacent Properties ..................................................................................................................... 96
Other Relevant Data and Information ......................................................................................... 97
Environmental and Surface Title Liabilities ........................................................................... 97
17.0
Interpretation and Conclusions ................................................................................................... 98
18.0
Recommendations ..................................................................................................................... 100
19.0
References Cited and Selected References ............................................................................... 101
20.0
Statements of Qualifications ..................................................................................................... 104
APPENDIX 1 – LISTING OF DRILL HOLES ........................................................................................ 107
APPENDIX 2 – SEMIVARIOGRAMS ................................................................................................... 111
APPENDIX C – CONSENT OF QUALIFIED PERSONS ...................................................................... 118
5
List of Figures
Figure 1: A map showing the location of the Viking, Kramer and staked licences in relation to White Bay
and the communities of Pollards Point and Sop’s Arm .............................................................................. 15
Figure 2: Lithotectonic Subdivisions of the Northern Appalachians .......................................................... 28
Figure 3: Regional Geology Map of the Southern White Bay Area ........................................................... 30
Figure 4: Viking Property Geology Map .................................................................................................... 32
Figure 5: Au Soil Map with Rock Samples > 1 g/t ..................................................................................... 34
Figure 6: Thor Trend Drill Hole Location Map .......................................................................................... 36
Figure 7: Cross Section A-A' Thor Vein..................................................................................................... 37
Figure 8: Cross Section B-B' Thor Trend ................................................................................................... 38
Figure 9: Surface Map of the Thor Vein Prepared by Northern Abitibi ..................................................... 39
Figure 10: Orientation Diagram for the Thor Trend Quartz Veins ............................................................. 40
Figure 11: A) High-grade Thor Vein exposed at surface. B) Low-grade sheeted vein zone hosted in granite.
C) Close up of quartz-sulfide vein with gold grains. D) Close up of a sulfide rich portion of the Thor Vein.
.................................................................................................................................................................... 41
Figure 12: Photos from the Viking Trend. A) View of Viking Pond looking south which parallels the Viking
Trend (located on the left side of the photo). B) Trench 25 looking west. Note the strong quartz veining
throughout the outcrop. C) Close up of Trench 25 showing the strong-sheeted veining and subordinate
conjugate vein set. D) and E) Laminated quartz vein containing wallrock parallel rock fragments and iron
carbonate +/- feldspar. The wallrock surrounding the quartz vein is soft and strongly sericite altered...... 42
Figure 13: Location of 2007 to 2009 trenches along the Thor Trend ......................................................... 48
Figure 14: Simplified geology of the Thor Trend ...................................................................................... 49
Figure 15: Location of 2010 Trenches ........................................................................................................ 50
Figure 16: Location of 2011 drilling, trenching, and IP survey .................................................................. 52
Figure 17: Plan Map 3D Chargeability Model at 50m depth ...................................................................... 54
Figure 18: Plan Map 3D Resistivity Model at 50m depth .......................................................................... 55
Figure 19: Kramer Area Drillhole and Trench Locations ........................................................................... 58
Figure 20: Thor Trend drillhole location map showing all drillholes to 2011 ............................................ 66
Figure 21: Plot of original versus check assays – drillholes 09VK-20 and 10VK-46 ............................... 78
Figure 22: Plan view showing Thor Trend (from Northern Abitibi Web Site)........................................... 83
Figure 23: Isometric view looking north showing the mineralized Thor solids ......................................... 84
Figure 24: Isometric view looking NW showing the Thor mineralized solids, drillholes and surface
topography .................................................................................................................................................. 84
Figure 25: Lognormal Cumulative Frequency Plot for Au in Thor Mineralized Solids ............................. 85
Figure 26: Section 500617 E showing Kriged Au grades in estimated blocks and composite both colour
coded ........................................................................................................................................................... 94
Figure 27: Section 500667 E showing Kriged Au grades in estimated blocks and composite both colour
coded ........................................................................................................................................................... 95
6
List of Tables
Table 1: Thor Trend - Mineral Resources as at December 30, 2011 .......................................................... 10
Table 2: Summary of Licences ................................................................................................................... 16
Table 3: Standard Claims Renewal Fees and Work Requirements............................................................. 17
Table 4: Historical Exploration on the Viking Project (1987 to 2013) ....................................................... 22
Table 5: Thor Trend – Mineral Resources as per the December 30, 2011 Mineral Resource Estimate ..... 25
Table 6: Select sample results from the 2008 trenching program at Viking ............................................... 45
Table 7: Select sample results from the 2009 trenching program ............................................................... 46
Table 8: March 2011 Thor Trend Inferred Mineral Resources ................................................................... 53
Table 9: Thor Trend - Mineral Resources as of December 30, 2011 .......................................................... 56
Table 10: Drillhole locations and parameters for the Viking Project ......................................................... 59
Table 11: Significant Drill Intercepts from the Viking Trend .................................................................... 67
Table 12: Significant drill intercepts from the Kramer Trend .................................................................... 73
Table 13: Certified standards used during the Viking exploration programs ............................................. 79
Table 14: Gold assay statistics inside and outside the Thor Mineralized Solids ........................................ 85
Table 15: Au Populations in Thor Mineralized Solids................................................................................ 86
Table 16: Capped Gold assay statistics inside and outside the Thor Mineralized Solids ........................... 86
Table 17: Gold 2.5 m Composite statistics inside and outside the Thor Mineralized Solids...................... 86
Table 18: Au Populations for 2.5 m Composites in Thor Mineralized Solids ........................................... 87
Table 19: Semivariogram Parameters ......................................................................................................... 88
Table 20: Specific Gravity Determinations ................................................................................................ 89
Table 21: Kriging Parameters ..................................................................................................................... 90
Table 22: Thor Trend Indicated Mineral Resources ................................................................................... 92
Table 23: Thor Trend - Inferred Mineral Resource .................................................................................... 93
Table 24: Thor Trend - Mineral Resources ................................................................................................. 98
Table 25: Budget for recommended work program inclusive of labour, logistics and geochemical analysis
.................................................................................................................................................................. 100
7
1.0
Summary
The Viking Project is held by Anaconda Mining Inc. and is located in the White Bay area of western
Newfoundland, in the province of Newfoundland and Labrador, Canada. The Project consists of four
mineral licences: 014079M, 019689M, 023770M and 023771M, totaling 6,225 hectares. The Project is
accessible through truck roads off the main highway into Pollards Point (Route 420), which trends north
off the Trans-Canada Highway west of Deer Lake, which hosts the nearest airport.
Licences 014079M and 019689M were acquired from Spruce Ridge Resources through two option
agreements dated February 5th, 2016, and include a 100% undivided interest in these mineral licences.
Licences 023770M and 023771M were acquired through staking. Licence 014079M is subject to a 0.5%
Net Smelter Royalty to Spruce Ridge Resources and a 2.5% Net Smelter Royalty to Altius Resources Inc.
and a prospector, Paul Crocker. Licence 019689M is subject to a 2% Net Smelter Royalty to Spruce Ridge
Resources and a 1% Net Smelter Royalty to Altius Resources Inc. The Spruce Ridge Net Smelter Royalty
on Licence 019689M is capped at two and one-half million dollars ($2,500,000), after which, the Spruce
Ridge Net Smelter Royalty will be reduced to 1%. A further 1.5% Net Smelter Royalty is granted to Altius
Resources Inc. on an area of interest within 3 km of the combined licences 014079M and 019689M. There
are no known risk factors that could affect access, title or Anaconda Mining Inc.’s ability to conduct the
work required on the property.
Bedrock geology on the property is characterized by ~1500 Ma granitoid gneisses that were intruded by
both ~1980-1030 Ma granitoid bodies and late Proterozoic mafic and ultramafic dikes. Gold mineralization
in the area was first explored by BP Selco Ltd. in 1986 and low-grade gold mineralization (<1.0 grams per
tonne) occurring in altered gneisses and associated quartz veins was first encountered in drilling on the
property by Noranda Exploration Company Limited in 1989. In 2007 Northern Abititbi Mining Corp.
discovered high-grade gold mineralization (>20.0 grams per tonne) within quartz veins hosted by altered
granitoid gneisses and intrusions. Subsequent trenching and sampling resulted in the discovery of the Thor
Deposit, which was partially delineated through several core-drilling programs. Mineralization is typical of
Orogenic style gold.
Data presented in this Technical Report are verified in the field where possible and against logs or
notebooks as well as assay certificates to assure high data quality. For core related data, following an
original assessment, compiled digital databases undergo a second check for errors and inconsistencies using
Geosoft Target software. All of the digital databases for core and channel samples related to the Mineral
Resource Estimate have been constructed, reviewed, and checked by Author Ebert. All drillhole logs, assay
certificates, and historic documents have been made available to Author Giroux who conducted the current
Mineral Resource Estimate.
The validated drillhole and trenching databases from the 2007 to 2011 programs on the Viking Project are
considered to be accurate and acceptable for use in this Mineral Resource Estimate. For further verification,
author Copeland conducted independent checks on select channel samples, drill collars, core and check
assays. All data is considered accurate and acceptable.
A drill core sampling in the Mineral Resource Estimate were subject to a Quality Control and Quality
Assurance program. This included submission of blind blank samples, duplicate split samples of quarter
8
core, certified analytical standards and analysis of check samples at a third party commercial laboratory.
Additionally, internal laboratory reporting of quality control and assurance sampling was monitored on an
on-going basis during the course of the drilling. The results from the use of standards indicate sufficiently
consistent variability to support the use of the assay data in the current Mineral Resource Estimate. The use
of blind blanks in the analytical program indicate there are no significant or systematic cross-contamination
effect is interpreted to be present in the Au data set. The results of the quarter core sampling show reasonable
correlation in lower-grade samples. High-grade samples, however, can show considerable variability
indicating a strong nugget effect as a result of coarse heterogeneous gold distribution in the high-grade
veins. The check (pulp) sample program included samples submitted to a second laboratory and the results
compare well with the original results and are interpreted to show acceptable confirmation of the dataset
mineralization levels. In some of the higher-grade samples, however, the check samples show higher
degrees of variation. This variation is attributed to the strong nugget effect seen within the high-grade veins.
The majority of samples in the database are not strongly influenced by this nugget effect.
Preliminary metallurgical test work was done on the Thor Deposit in 2010 and in 2015. The 2010 sample
consisted representative drill core and was conducted by Met-Solve Laboratories Inc. of Burnaby, British
Columbia. The work included screen analysis to determine average free gold particle size, preliminary grind
size versus recovery studies, and determination of gravity recoverable gold percentage and gold recovery
by bottle roll cyanide leaching. Results of the metallurgical testing showed that gold mineralization at the
Thor Trend is not refractory and can be readily extracted by gravity or cyanide recovery methods. No
significant metallurgical concerns were identified. Results included: gold recovery of 97% by cyanide
leaching of a 59-micron grind size product, 70% of the gold is recoverable by gravity concentration methods
at a 97-micron grind size, and higher gravity recoveries might be possible through process optimization. As
part of its due diligence, Anaconda Mining conducted metallurgical testing in late 2015, which indicates
that ore from the Thor Deposit could be processed at the Pine Cove Mill using current flotation and leach
circuit configuration. The results of the study are based on a homogenized sample collected from two
diamond drillholes. Bench scale test work, conducted by NB Research and Productivity Council, primarily
focused on flotation, cyanide leaching and grinding to evaluate the response of the Thor Deposit material
to the current plant flow sheet for the Pine Cove Mill. In a flotation test, using a grind of (80% passing) 150
µm, currently used for Pine Cove ore, the Thor Deposit sample attained 96.0% Au recovery in 4.4% of the
mass at a grade of 35.12 grams per tonne Au in the rougher stage. In a bottle roll cyanidation test the current
Pine Cove Mill, regrind size of (80% passing) 20 µm obtained 94.1% Au extraction without requiring
accelerating reagents and consumed 1.1 kilograms per tonne NaCN compared to 3.6 kilograms per tonne
for Pine Cove ore. A Bond Ball mill grindability test was performed utilizing a limiting screen size of 150
µm and indicated that the sample has a Bond Ball Work Index value of 18.5 kWh/t.
A Technical Report authored by Shane Ebert and Gary Giroux, dated December 30, 2011, reported a
Mineral Resource at cut-off grade of 0.2 grams per tonne Au with the Thor Deposit containing an Indicated
Mineral Resource of 98,000 ounces Au (3,232,000 tonnes at an average grade of 0.95 grams per tonne) plus
an Inferred Mineral Resource of 45,000 ounces Au (2,123,000 tonnes at an average grade of 0.66 grams
per tonne). This Mineral Resource Estimate, established in the December 30th, 2011 report, remains valid
as no additional material work has been conducted since the publication of that resource. The Mineral
Resource Estimate is restated in this Technical Report using a cut-off grade of 1.0 grams per tonne. This
cut-off grade is established based on Anaconda’s mining experience at its Pine Cove operation near Baie
9
Verte, Newfoundland and Labrador where gold is mined using a cut-off grade of 0.7 grams per tonne. The
Company will investigate leveraging the mill and tailings infrastructure at the Pine Cove site in any potential
development of the Thor Deposit. Based on this 1.0 grams per tonne cut-off is considered reasonable. In
accordance with Canadian Securities Administrators National Instrument 43-101 and the CIM Standards
on Mineral Resources and Reserves the Thor Deposit Mineral Resource is stated at a 1.0 grams per tonne
cut-off, as containing an Indicated Mineral Resource of 937,000 tonnes grading 2.09 grams per tonne and
an Inferred Mineral Resource of 350,000 tonnes grading 1.79 grams per tonne and has an effective date of
August 29, 2016. Results of the Mineral Resource Estimate are summarized in Table 1 below.
Table 1: Thor Trend - Mineral Resources as at December 30, 2011
Au Cut-off
(grams per tonne)
Tonnes> Cut-off
(tonnes)
Grade > Cut-off
Contained
Au (grams per tonne) Ounces Au*
Indicated
0.50
1,817,000
1.42
83,000
1.00
937,000
2.09
63,000
2.00
357,000
3.19
36,600
Inferred
0.50
847,000
1.15
31,000
1.00
350,000
1.79
20,000
2.00
94,000
2.90
8,800
*Mineralized domains are spatially constrained and capped.
At a cut-off grade of 1.0 grams per tonne Au the Thor Deposit contains an Indicated Mineral Resource of
63,000 ounces Au (937,000 tonnes at an average grade of 2.09 grams per tonne) plus an Inferred Mineral
Resource of 20,000 ounces Au (350,000 tonnes at an average grade of 1.79 grams per tonne).
The current Mineral Resource Estimate was carried out by Giroux Consultants Ltd. of Vancouver, British
Columbia and Independent Qualified Person Gary Giroux, P.Eng is responsible for the estimate. The
Mineral Resource Estimate is based on a database containing 109 holes drilled into the Thor Trend totaling
15,574 m of diamond drilling, and 74 lines of surface channel samples cut from trenches using a diamond
saw.
Mineralization was constrained within 3D geologic solids built using Gemcom software. Some isolated
high gold assays sit outside the mineralized solids and have not been included in the Mineral Resource
Estimate. The distributions of gold within and outside the mineralized solids were examined using
lognormal cumulative distribution plots and six overlapping gold populations were identified. Gold assays
within the mineralized solid were capped at 66 grams per tonne Au while those outside the solid were
capped at 4.0 grams per tonne Au. There is insufficient drill data at present to accurately model the highgrade zones along the Thor Trend so an indicator approach was used to model the high-grade.
10
Drillhole assay samples were composited into 2.5 m intervals and a block model with 5m x 5m x 5m block
size was created. Grades for gold were interpolated into all blocks, by a combination of Ordinary and
Indicator Kriging. North-south cross sections showing the kriged block Au grades and drillhole composites
were produced to validate the block model and in general the block grades match the composite grades well
and there is no indication of bias present.
A follow up program of surface exploration is recommended including 7000 m of diamond drilling, channel
sampling and mapping, at a cost of approximately $1 million Canadian. Several IP anomalies remain to be
drill tested, including an anomaly which occurs immediately south of the Thor Trend resource. Anaconda
began exploration activities on the Viking Project in August of 2016 with the goal of discovering new gold
deposits on the property and expanding existing deposit, with a focus on outlining the potential for
significant mineral expansion and grades higher. At the time of writing, Anaconda had conducted
geological mapping and initiated surface sampling on the Kramer and Viking Trends and began drilling to
the north of the Mineral Resource outlined in this Technical Report.
The Company plans to conduct preliminary studies on the potential development of the Thor Deposit with
an emphasis on the potential to leverage existing infrastructure at the Pine Cove Mill site approximately
180 km by road from the Viking Project. These studies will be on going as drill results are available from
the current exploration program and future mineral estimates become available.
11
2.0
Introduction
The purpose of this NI 43-101 Technical Report and Mineral Resource Estimate (“Technical Report” or
“Report”) is to support the disclosure of Mineral Resources at the mineral project referred to as the Viking
Project (the “Project”), controlled by Anaconda Mining Inc. (“Anaconda” or the “Company”) and located
in north western Newfoundland, in the province of Newfoundland and Labrador. This Report describes the
Viking Project and a Mineral Resource Estimate for the Thor Deposit (“Thor Deposit”). The Report was
prepared by D. Copeland, S. Ebert and G. Giroux on behalf of Anaconda to comply with technical reporting
and disclosure requirements set out under National Instrument 43-101 (“43-101”). The Report is considered
to be in accordance with Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral
Resources and Reserves Definitions and Guidelines (“the CIM Standards”). Author D. Copeland is an
independent qualified person working on behalf of Anaconda. Author S. Ebert is an independent qualified
person and former officer and a director of Northern Abitibi Mining Corp. (“Northern Abitibi” or “NA”),
the company that conducted much of the work on which this Report and Mineral Resource Estimate is
based. Author G. Giroux is an independent qualified person and is responsible for section 14.0 of this Report
covering the Mineral Resource Estimate. Mr. Ebert and Mr. Giroux are the authors of the previous
Technical Report on a portion of the Viking Project containing the Thor Deposit as described below. Mr.
Copeland and Mr. Ebert are responsible for the remaining sections of the report. Much of the information
and figures contained in this Report have been taken from historic reports and parts have been taken directly
from previous Technical Reports titled “MINERAL RESOURCE ESTIMATE FOR THE THOR TREND
GOLD DEPOSIT NORTHERN ABITIBI MINING CORP.”, dated March 2nd 2011, authored by M.P.
Cullen and M. Harrington of Mercator Geological Services and “MINERAL RESOURCE ESTIMATE
UPDATE FOR THE THOR TREND GOLD DEPOSIT, WHITE BAY AREA, NEWFOUNDLAND AND
LABRADOR, LATITUDE 49o 42’ N, LONGITUDE 57o 00’ W” dated December 30, 2011 and authored
by Dr. Shane Ebert, P. Geo. and Gary Giroux, P. Eng. MASc.
Terms of reference were established through discussions between Anaconda representatives, Mr. Copeland,
Mr. Ebert, and Mr. Giroux in August of 2016. It was determined that an updated description of the Viking
Project was required and that the Mineral Resource Estimate published in December of 2011 remains valid
since no material work has been conducted on the deposit since that time. The Mineral Resource Estimate
presented here is based upon validated results for all core drilling completed by Northern Abitibi during the
2007 through 2011 period as well as validated results for channel sampling along the Thor Deposit during
that same period. The Mineral Resource Estimate is based on a database containing 109 holes drilled into
the Thor Deposit totaling 15,574 m of diamond drilling and 10,522 assays for gold and 74 lines of surface
channel samples cut from trenches using a diamond saw totaling 385 assays for gold. Hard copy and/or
digital records of the 2008-2011 drilling and trenching program results, as well as digital elevation files and
geological reports, were delivered to Mr. Giroux by Anaconda for purposes of the resource estimation
program. This included complete drill logs, drill plans, assay records and laboratory records for drilling and
channel sampling completed by the Company, as well as geological reports covering all exploration
programs. Based on the preceding, Mr. Giroux assembled and validated a digital drilling and channel
sampling database upon which the three-dimensional Mineral Resource Estimate block model for the Thor
Deposit was developed. Mineralization was constrained within 3D geologic solids built using Gemcom
software. Drillhole assay samples were composited into 2.5 m intervals and a block model with 5m x 5m x
12
5m block size was created. Grades for gold were interpolated into all blocks, by a combination of Ordinary
and Indicator Kriging.
Mr. Copeland has visited the Viking Project most recently between August 8th and 15th, 2016 and has
validated the location of drill collars and channel sample locations at both sites. Mr. Copeland has also
validated drilling associated with the Thor Deposit through the visual inspection of core and through
geochemical analysis of select samples. Mr. Copeland has also extensively mapped the trenched exposures
at the Kramer Property and reviewed the Kramer diamond drill core.
Mr. Ebert has been involved in all aspects of the Viking exploration programs carried out from 2007 to
2011 inclusive and has several months of field experience on the Viking Property, and is familiar with all
aspects of the geology of that licence, drilling, trenching, and sampling programs carried out between 2007
and 2011.
Mr. Giroux has not visited the property.
13
3.0
Reliance on Other Experts
The information in this Report was prepared by, or under the supervision of Mr. Copeland P.Geo. and Mr.
Ebert, P.Geo. The Mineral Resource Estimate was prepared by Mr. Giroux, P.Eng. The independent
qualified persons have relied on information provided by Anaconda concerning the legal status of claims
that form the Viking Project. Effort was made by Mr. Copeland to review the information provided for
obvious errors and omissions; however, Mr. Copeland shall not be held liable for any errors or omissions
relating to the legal status of mineral claims described in this Report.
Copies of mineral tenure documents were reviewed by Mr. Copeland and a verification of claim title was
performed using the Mineral Rights Inquiry form found on the Newfoundland and Labrador Department of
Natural Resources webpage. Operating licences permits, and work contracts were not reviewed. Mr.
Copeland has not verified the legality of any underlying agreements that may exist concerning the licence
or other agreements between third parties, but has relied on, and believes they have a reasonable basis to
rely upon, Anaconda to have conducted proper legal due diligence.
Select technical data, as noted in the report, was provided by Anaconda; Mr. Copeland and Mr. Ebert have
relied on the integrity of such data. Mr. Copeland and Mr. Ebert have assumed and relied on the fact, that
all the information and existing technical documents listed in Section 19 (“References Cited and Selected
References”) of this Report are accurate and complete in all material aspects. While the authors carefully
reviewed all available information presented to them, the principal authors cannot guarantee its accuracy
and completeness. In particular the authors are relying on work previously completed by Northern Abitibi
and Spruce Ridge Resources Ltd. (“Spruce Ridge)” as presented and verified in the “NI 43-101 compliant
reports entitled MINERAL RESOURCE ESTIMATE FOR THE THOR TREND GOLD DEPOSIT
NORTHERN ABITIBI MINING CORP.”, dated March 2nd 2011, authored by M.P. Cullen and M.
Harrington of Mercator Geological Services and “MINERAL RESOURCE ESTIMATE UPDATE FOR
THE THOR TREND GOLD DEPOSIT, WHITE BAY AREA, NEWFOUNDLAND AND LABRADOR,
LATITUDE 49o 42’ N, LONGITUDE 57o 00’ W” dated December 30, 2011 and authored by Dr. Shane
Ebert, P. Geo. and Gary Giroux, P. Eng. MASc.
All statements and opinions expressed in this document are given in good faith and in the belief that such
statements and opinions are not false and misleading at the date of this Report.
14
4.0
Property Description and Location
4.1
General
The Viking Project includes 6,225 ha of prospective geology located adjacent to the community of Pollards
Point and extending south and southwestward approximately 8-10 km. The project consists of four mineral
licences: 014079M (“Viking Property”), 019689M (“Kramer Property”), 023770M and 023771M (Figure
1). The Viking and Kramer properties were acquired from Spruce Ridge, through two option agreements
dated February 5th, 2016 and include a 100% undivided interest in these mineral licences. Licences
023770M and 023771M were acquired through staking. The project area is located within NTS sheets
12H10 and 12H11. At the effective date of this Report mineral licence 023770M and 023771M were
registered to Anaconda Mining Inc. and mineral licence 14079M and 19689M were registered to Spruce
Ridge. Table 2 and Figure 1 present details of the Viking Project exploration holding.
Figure 1: A map showing the location of the Viking, Kramer and staked licences in relation to White Bay and the communities of
Pollards Point and Sop’s Arm
15
Table 2: Summary of Licences
Licence
Holder
014079M
Spruce Ridge
Resources Ltd.
Spruce Ridge
Resources Ltd.
Anaconda Mining
Inc.
Anaconda Mining
Inc.
019689M
023771M
023770M
4.2
No.
Claims
Date Issued
Anniversary
Date
Work Requirements
36
28-Jun-02
28-Jun-17
$43,200 by June 28 2021
125
22-Nov-16
22-Nov-16
$25,000 by Nov. 22, 2019
25
29-Feb-16
28-Feb-21
$5,000 by March 1, 2017
63
29-Feb-16
28-Feb-21
$12,600 by March 1, 2017
Confirmation of Title
The Newfoundland and Labrador Department of Natural Resources (“NLDNR”) online claims registry
system showed that a registered option agreement between Spruce Ridge and Anaconda for both the Viking
and Kramer licences enables Anaconda to conduct work on the properties currently registered in the name
of Spruce Ridge. The remaining two licences are confirmed to be in the name of Anaconda Mining Inc. All
claims were in good standing. Surface rights to lands in the property area are held by the province of
Newfoundland and Labrador and Anaconda has established access agreements and permits to these lands,
as necessary, to allow exploration activities to be carried out. It is understood that these agreements provide
permission to complete drillholes, trenches and access roads required by the Company. The Viking Project
does include and boarder tributaries of licenced salmon rivers as well as Pine Martin habitat. These
characteristics do not interfere with the completion of future exploration or development projects and at the
time of writing Anaconda has received exploration permits to conduct exploration activities. There are no
First Nations or other aboriginal groups that currently have land claims on the Viking Project.
4.3
Agreements with Other Parties
As per the option agreement signed on February 5th, 2016: to earn a 100% interest in the Viking Property,
the Company is required to make aggregate payments to Spruce Ridge of $300,000 over a five-year period
based on milestones to production ($25,000 paid at closing) including a final payment of $175,000 upon
commencement of commercial production. The Company can pay all option payments at any time during
the option period to earn its 100% interest. In addition, the Company granted warrants to Spruce Ridge to
purchase 350,000 common shares of Anaconda at an exercise price of $0.10 per share, expiring three years
from the Effective Date of the agreement. Further, the Viking Agreement provides for a 0.5% Net Smelter
Royalty (“NSR”) to Spruce Ridge on the sale of gold from the Viking Property.
As per the option agreement signed on February 5th, 2016: to earn a 100% interest in the Kramer Property,
the Company is required to make aggregate payments to Spruce Ridge of $132,500 over the five-year
period, beginning with an initial payment of $12,500 on closing with increasing payments on the
anniversary of the Effective Date. The Company also issued 250,000 common shares to Spruce Ridge and
a 2% NSR to Spruce Ridge on the sale of gold from the Kramer Property. The NSR is capped at two and
one-half million dollars ($2,500,000), after which, the NSR will be reduced to 1%. Anaconda is required
16
to spend a total of $750,000 in qualified exploration expenditures on the Kramer Property during the option
period.
As per the NSR agreement with Altius Resources Inc. (“Altius”) on February 5th, 2016: two previous NSR
agreements held by Altius and a prospector, Paul Crocker, in relation to Viking Property, will be terminated
upon Anaconda earning its 100% interest in the Viking Property and/or the Kramer Property. These
agreements will be replaced by new NSR agreements that stipulate that the Company will pay Altius a 2.5%
NSR granted on the Viking Property, a 1% NSR granted on the Kramer Property and a 1.5% NSR granted
on an area of interest within 3 km of the combined Viking and Kramer Properties.
4.4
Summary of Exploration Title Information
Mineral exploration licences in Newfoundland and Labrador are issued under the province’s Mineral
Resources Act (1990 and as subsequently amended) (“the Act”) and provide a licencee with exclusive right
to explore for specified minerals within the licenced area for a period of 5 years, subject to terms and
conditions of the Act. An exploration licence can consist of up to 256 mineral claims. Individual claims
held under a mineral exploration licence measure 16.188 hectares in surface area (~forty acres) and are
renewable on a yearly basis. Maintaining claims in good standing from year to year requires filing of
scheduled annual renewal fees and documents for each exploration licence as well as meeting minimum
yearly work commitment and reporting requirements. A $60/claim staking fee consists of a $10/claim
staking recording fee and a $50/claim staking security deposit. The staking security deposit is refunded
upon submission and acceptance of the report covering the first year work requirements. A mineral
exploration licence is issued for a term of five years. However, a mineral exploration licence may be held
for a maximum of twenty years provided the required annual assessment work is completed and reported
upon and the mineral exploration licence is renewed every five years. Under normal circumstances, fees
and minimum work requirements set out under the provision of the Act vary according to the year of licence
issue and are summarized in Table 3.
Table 3: Standard Claims Renewal Fees and Work Requirements
Year of Issue
1
2
3
4
5
6 through 10
11 through 15
16 through 20
Assessment Expenditure Required
$200 per claim
$250 per claim
$300 per claim
$350 per claim
$400 per claim
$600 per claim
$900 per claim
$1200 per claim
Renewal Fee
$25 per claim/year 5
In each year of the licence, the minimum annual assessment work must be completed on or before the
anniversary date. The assessment report must then be submitted within 60 days after the anniversary date.
If a report cannot be completed and submitted on schedule, a partial report acceptable to the Mineral Claims
Recorder may be submitted and a (Condition 3) sixty day extension of time applied for in order to submit
the completed report. The partial report, at a minimum, must contain a title page, a table of contents, a brief
17
description of work completed and an estimated statement of expenditures. Excess assessment work
completed in any one year can be is carried forward for a maximum of nine years and it is automatically
credited to the licence. Excess assessment work credit is the amount of work completed and reported above
what is required to be done during any twelve-month period of the licence. When a licence holder is unable
to complete the assessment work required to be done in any twelve-month period, an application for a
(Condition 2) twelve-month extension of time in which to complete the work may be approved. An
extension of time does not relieve a licence holder from performing and reporting the assessment work for
the ensuing twelve months on schedule. An extension of time (Condition 2 extension of time) requires that
the licence holder post a security deposit in the form of cash, cheque or an irrevocable letter of credit for
the amount of the deficiency. The security deposit must be delivered to the Mineral Claims Recorder prior
to the anniversary date of the year for which the extension is requested. When the deficient work is
completed and accepted, the security deposit will be refunded, otherwise, the security deposit will be
forfeited. For map staked licences, a (Condition 2) twelve month extension of time for the first year will
result in the staking security deposit of $50 per /claim being refunded. Where approved work cannot be
completed in any year and the delay is caused by environmental considerations imposed under the
exploration permit, the requirement for delivery of the security deposit for a (Condition 2) twelve month
extension of time shall be waived at the request of the licencee.
Any person who intends to conduct an exploration program on a staked or licenced area must submit prior
notice with a detailed description of the activity to NLDNR. An exploration program that may result in
major ground disturbance or disruption to wildlife or wildlife habitat must have an Exploration Approval
from the department before the activity can commence.
An exploration licence conveys an exclusive right to explore for named minerals but does not provide
certainty with regard to land access or ownership of minerals. Access to lands is at the discretion of surface
titleholders and a Mining Lease or Special Mining Lease must be granted by the government to establish
ownership of Mineral Resources for which production is planned. Mining activities can only be initiated
after an Environmental Approval has been granted and various permits relating to industrial, environmental
and engineering aspects of the proposed mining operation have been obtained.
18
5.0
Accessibility, Climate, Local Resources, Infrastructure and Physiography
5.1
Accessibility
The Viking Project is located approximately 12 km southwest of the community of Jackson’s Arm, White
Bay, on NTS map 12H/15. The area is accessed by paved provincial Route 420 that intersects the TransCanada Highway approximately 55 km to the south. Deer Lake Airport, with daily scheduled flight access
to St. John’s, Halifax, Toronto and other domestic locations, is located roughly 120 road km south of
Jackson’s Arm via Route 420 and the Trans-Canada Highway. From Route 420 an access road and trail
extends from the paved highway for a distance of approximately 2.5 km to the central Thor Deposit area
where a core logging and storage facility has been established. Other trails suitable for movement of heavy
equipment extend from this area to the various drilling and trenching sites on the property. Core logging
and sampling facilities are located immediately east of the Thor Deposit on the access road. The property
is accessible from mid-May to December for most exploration work and snow clearing along the access
road from Route 420 would allow winter access to the deposit area. Diamond drilling and ground
geophysics could be carried out year-round but could be hampered by extensive snow cover. Work
programs requiring access to bare ground surfaces and outcrops would typically be restricted to the May
through late November period.
5.2
Physiography and Climate
5.2.1
Physiography
Topography in the Viking Project area is moderate, with forested hillsides and local rock escarpments,
rising from the ~ 120 m above sea level (“ASL”) elevation of adjacent Route 420 to ridge-top plateaus such
as that in the Thor Deposit area that occurs at an elevation of about -480 m ASL. The project area is strongly
incised by major east and northeast trending stream valleys that are further dissected by northwest trending
secondary valleys. Moderate slopes and flat hilltops characterize most of the area and the majority of the
property can be easily accessed for exploration purposes. Locally steep slopes and rock escarpments prevent
easy exploration access in some areas. Numerous small ponds and lakes are also present. Glacial overburden
and thin soils occur throughout this area are generally shallow, making trenching a viable exploration
option. Bedrock exposures are typically isolated and irregular.
Well-developed coniferous forest cover characterizes the major northeast trending stream valleys and
sparser tree cover interspersed with small barren patches occurs on intervening ridges.
5.2.2
Climate
The Viking Project is situated in the White Bay area of northwest Newfoundland where northern temperate
zone climatic conditions prevail. Winter conditions, expected from late November through to late March,
include freezing temperatures and substantial snowfalls. Summer conditions prevail from late June through
early September and typically provide good working conditions for field parties. Spring, and fall seasons
experience cool temperatures with frequent periods of rain.
19
The following climate information is an average of those reported for Sop’s Arm, White Bay during the
30-year period ending in 2000 and generally characterizes seasonal precipitation and temperature trends in
the area. The average August daily mean temperature for the reporting period was 15.5 ºC with a
corresponding extreme maximum temperature of 32 ºC. Average daily winter temperature for February was
-8.4 ºC with a corresponding extreme minimum being -33.5 ºC. Mean annual temperature is 3.5 ºC, mean
annual snowfall is 273 cm and mean total annual precipitation is 958.7 mm.
5.3
Infrastructure and Local Resources
Basic support infrastructure is present in the area, with Route 420 passing within 1 km of the eastern
property boundary and the Trans-Canada Highway and Deer Lake Airport located within a highway travel
radius of less than an hour. Basic support services such as motel accommodations, a grocery store and fuel
stations are present in Pollards Point, less than 12 km from the field area, and access to contract heavy
equipment services typically used in forestry road building and domestic construction markets is also
possible. The nearest communities providing medical, scheduled airline and broader support services are
those in the Deer Lake–Corner Brook area, located approximately 100 km and 140 km by highway,
respectively, to the south. The provincial Crown controls holds most the regional surface and timber rights
in this part of Newfoundland and Labrador and access to areas for mineral exploration purposes is generally
straight forward, consisting of notification and authorization as required under provincial legislation.
20
6.0
History
6.1
Introduction
The history of reported mineral exploration on the Viking Project is relatively short and spans the period
between 1986 and 2013. Portions of the underlying discussion are taken directly from Cullen and
Harrington (2011) and Ebert and Giroux (2011) with little modification (Table 4).
21
Table 4: Historical Exploration on the Viking Project (1987 to 2013)
Viking Property Historical Work
Year
Company
Work
1987
BP
Line cutting and soil sampling,
Resources
prospecting, geological
mapping and airborne
magnetics and VLF-EM
1987Noranda
Prospecting, geological
1988
mapping, rock and soil
sampling
1989
Noranda
systematic soil and rock
sampling, prospecting,
geological mapping, diamond
drilling, ground magnetics,
VLF and IP surveys
1990
Noranda
Additional line cutting, soil
and rock sampling, ground
magnetic, VLF and IP surveys,
and diamond drilling
2006
Altius
Data compilation, drill core
Minerals
review and rock sampling
Trenching
Drilling
Highlights
Definition of broad gold-in-soil
anomaly
Viking Trend anomaly identified
2007
Northern
Abitibi
Road building, prospecting
and trenching
6 trenches
(TR-1 to 6)
2008
Northern
Abitibi
Trenching, diamond drilling,
geological mapping
20 trenches
(TR-7 to 26)
2 holes - 243.2 m (SM-89-1
and 2)
45 m of altered granite assaying 0.56
gram-per-tonne (“g/t”) Au over 5.3
m; discovery of the Viking Trend
1 hole - 110.4 m (SM-90-1)
Discovery of the Thor Trend; SM90-1 assays 0.17 g/t Au over 20 m
Assays up to 26.6 g/t Au from Viking
Trend, traced zone of mineralization
over 200 m
22
10 holes - 575 m (08VK-01
to 10)
Re-discovery of Thor Trend; assays
up to 2.2 g/t Au over 7 m in trenches.
Drill assays up to 33.74 g/t Au over
5.75 m (08VK-01); 5.12 g/t Au over
23 m (08VK-03)
2009
Northern
Abitibi
geological mapping
15 trenches
(TR-27 to 41)
35 holes - 3,612.6 (09VK11 to 45)
Expansion of the Thor Trend; 2.8 g/t
Au over 57.4 m (09VK-14); 4.1 g/t
Au over 18.2 m (09VK-19)
2010
Northern
Abitibi
rock and soil sampling
13 trenches
(TR-42 to 54)
58 holes - 9,734.8 m
(10VK-46 to 103)
Expansion of the Thor Trend; 1.8 g/t
Au over 32 m (10VK-60)
2011
Northern
Abitibi
IP surveying
8 trenches
(TR-55 to 62)
25 holes - 4,698.2
m(11VK-104 to 128)
Initial and Resource Update for the
Thor Trend
62 trenches
131 holes - 18,974.2 metres
Trenching
Drilling
Totals
Kramer Property Historical Work
Year
Company
Work
1987
BP
Line cutting and soil sampling,
Resources
prospecting, geological
mapping and airborne
magnetics and VLF-EM
2009
Spruce
Road building and prospecting
Ridge
Resources
Highlights
Definition of broad gold-in-soil
anomaly
Discovery of mineralized bedrock
with assays up to 49.8 g/t Au and
111.2 g/t Ag at Kramer
2010
Spruce
Ridge
Resources
Prospecting, Trenching and
diamond drilling
4 trenches
6 holes - 600 m (KR-10-01
to 06)
0.39 g/t Au over 7.2 m (KR-10-07)
and up to 32.10 g/t Au over 0.18 m in
trenches
2010
Spruce
Ridge
Resources
Trenching and diamond
drilling
Expand
existing
trenches; 5
new trenches
8 holes - 1,000 m (KR-1007 to 14)
1.12 g/t Au over 20.05 m including
3.78 g/t Au over 5.15 m (KR-10-07)
testing of the Kramer, Whiskey Jack
and Quartzite prospects
2013
Spruce
Ridge
Resources
Diamond drilling
Totals
14 holes - 2,051.8 m (KR10-15 to 28)
9 trenches
28 holes - 3,651.8 metres
23
Drillhole KR13-17 assayed 25.41 g/t
Au over 0.50 metres
6.2
Historical Exploration
6.2.1
Exploration Programs Completed Prior to 1987
Prior to 1987, there is no record of industry-sponsored work in the area of these claims. A detailed
compilation of significant mineral exploration activity in the area is presented in Churchill and Voordouw
(2006).
6.2.2
Exploration Programs Completed Between 1987 and 1990
In 1987, BP Resources Canada Limited (“BP”) undertook a program of line cutting and soil sampling and
defined a broad, moderate gold-in-soil anomaly in the eastern part of the claim block. In 1988, BP conducted
additional line cutting, grid mapping, prospecting, took 267 additional soil samples, and conducted a
helicopter borne magnetic and VLF-EM survey. They outlined a 200 m x 500 m gold-in soil anomaly with
values ranging between 100 and 200 parts per billion that was open to the west and south. In 1987 and
1988, Noranda Exploration Company Limited (“Noranda”) conducted large programs of prospecting,
mapping, and rock and soil sampling on claims adjacent to this held by BP. In 1989, Noranda completed
additional soil and rock samples, prospecting, geological mapping, diamond drilling, ground magnetics,
VLF and IP surveys. Two diamond drillholes (SM-89-1 and SM-89-2) totalling 243.2 m were also
completed. Drillhole SM-89-1 intersected 45 m of altered granite within which a grade of 0.56 g/t Au over
5.3 m was returned that corresponded with a weak Induced Polarization (IP) anomaly. This anomaly showed
increased strength towards the southwest, possibly indicating that intensity of gold mineralization might
also increase in this direction. Hole SM-89-2 returned a high of 0.61 g/t Au over 0.5 m from altered granite.
In 1990, Noranda completed a small program of line cutting, soil sampling, magnetometer, VLF- EM and
IP surveying and drilled one diamond drillhole (SM-90-1). The hole was drilled to a depth of 110.4 m and
the best intersection was 0.17 g/t Au over 20 m.
6.2.3
Exploration Programs Completed Between 2006 and 2007
In 2006, Altius acquired the Viking claims and conducted a comprehensive data compilation and review.
Historic information was compiled in digital format to support further assessment using a geographic
information system. Altius conducted field visits to the property, collected 42 rock samples for analyses,
and examined historic drill core from the property. In 2007, Altius completed an airborne magnetic,
electromagnetic and radiometric survey over the Viking claims as part of a larger 1916.2 line km survey
(Thurlow and Churchill, 2007). In 2007, Northern Abitibi optioned the property from Altius and results of
subsequent work programs carried out by Northern Abitibi are reported below and in report section 9.0.
6.2.4
Viking Property Exploration Between 2008 and 2011
24
From 2007 to 2011, Northern Abitibi completed soil sampling, prospecting, IP geophysical surveying,
excavation of 62 trenches (TR1 to TR62), road building (6.5 km), and 18,624.6 m of diamond drilling in
128 drillholes (Cullen and Harrington, 2011; Ebert and Giroux, 2011). The work resulted in outlining
several areas of gold mineralization on the property including the Thor, Viking, Asgard, Thor’s Cross and
Odin’s Triangle Trends. Work as resulted in initial and updated NI43-101-compliant resources on the Thor
Deposit in 2011.
The initial Mineral Resource Estimate on the Thor Deposit was completed for Northern Abitibi by Mercator
Geological Services Limited in March 2011 and resulted in an Inferred Mineral Resource containing
6,284,000 tonnes grading 0.61 g/t Au (123,242 ounces) using a 0.2 g/t Au cut-off. In this initial estimate
high-grade domains are spatially constrained and capped at 28 g/t Au and low-grade domains were capped
at 5 g/t Au (Cullen and Harrington, 2011).
Follow-up work in 2011 by Northern Abitibi included 8 trenches (trenches 55 to 62) and drilling and
additional 25 holes totaling 4,698.2 m. This resulted in an updated Mineral Resource on December 30,
2011, for the Thor Deposit (Ebert and Giroux, 2011). Results of the December 30, 2011 Mineral Resource
Estimate are summarized in Table 5 below. At a cut-off grade of 0.20 g/t Au the Thor Trend Deposit
contains an Indicated Mineral Resource of 98,000 ounces Au (3,232,000 tonnes at an average grade of 0.95
g/t) plus an Inferred Mineral Resource of 45,000 ounces Au (2,123,000 tonnes at an average grade of 0.66
g/t). These new results represent a 55% increase in grade over the previous estimate and a 16% increase in
contained ounces. Approximately 80% of the contained gold ounces were upgraded from the Inferred to
the Indicated category.
Table 5: Thor Trend – Mineral Resources as per the December 30, 2011 Mineral Resource Estimate
Au Cut-off
(g/t)
Tonnes> Cut-off
(tonnes)
Grade > Cut-off
Au (g/t)
Contained
Ounces Au*
Indicated
0.10
3,593,000
0.87
100,000
0.20
3,232,000
0.95
98,000
0.50
1,817,000
1.42
83,000
1.00
937,000
2.09
63,000
2.00
357,000
3.19
36,600
3.00
147,000
4.33
20,500
Inferred
0.10
2,459,000
0.59
47,000
0.20
2,123,000
0.66
45,000
0.50
847,000
1.15
31,000
1.00
350,000
1.79
20,000
2.00
94,000
2.90
8,800
3.00
29,000
4.10
3,800
25
The exploration work completed by Northern Abitibi is presented in greater detail in section 9.0 below.
Northern Abitibi sold the rights to the Viking Property to Spruce Ridge in 2012.
6.2.5
Kramer Property Exploration Between 2009 and 2013
During the summer 2009, workers constructing an access road to the Viking Property uncovered a zone at
least 30 m in width within altered granite containing at least three quartz-sulfide rich veins measuring up
to 30 cm in width and locally carrying fine visible gold. Grab samples returned assays grading up to 49.8
g/t Au and 111.2 g/t Ag.
Since 2009, Spruce Ridge has completed prospecting and geological mapping, excavated 9 large trenches
and drilled 28 diamond drillholes totalling 3,651.8 m (Table 4). Exploration work has led to the discovery
of the Kramer, Kramer Northeast, Quartzite, Whiskey Jack and Discovery zones. Gold mineralization is
currently outlined over a strike length of 1.3 kilometres.
On February 5, 2016, Anaconda optioned the Viking and Kramer Properties from Spruce Ridge,
consolidating both properties into one project.
26
7.0
Geological Setting and Mineralization
7.1
Lithotectonic Subdivisions Relative to the Viking Project
Williams (1979) proposed a five part litho-tectonic framework for the Northern Appalachian orogen and,
although subsequently modified, this basic framework can still be usefully applied (e.g. Williams et al.,
1988, van Staal and Fyffe, 1991, van Staal, 2006). Figure 2 outlines the five major litho-tectonic zones,
these being from west to east, the Humber, Dunnage, Gander, Avalon and Meguma zones. Evolution of
these major zones reflects development and destruction of the Lower Paleozoic Iapetus Ocean through
sequential closure that incorporated two major stages of arc-related rifting, with staged subsequent accretion
and superimposed structural modification of accreted terranes (van Staal, 2006). Summarily, the Humber
Zone reflects the early Paleozoic continental margin sequence of cratonic North America that was deposited
on and adjacent to late Precambrian (Grenvillian) basement. The Dunnage Zone adjoins to the east and is
comprised of remnants of Iapetan oceanic crust plus some accreted fragments of associated back-arc basins
and volcanic arc complexes. These record earliest increments of Iapetan closure that correlate with the
initial pulses of the Late Ordovician Taconic Orogeny. The Gander Zone consists predominantly of
sedimentary sequences plus remnants of subduction-related back-arc volcanic sequences that accumulated
oceanward of the opposing Iapetan passive margin. Volcanic arc complexes developed as a result of eastdirected subduction and this culminated in full ocean closure during the final, Late Ordovician phase of the
Taconic Orogeny. Van Staal (2007) inferred presence of a narrow micro-continental block of sialic crust
within the Iapetan ocean basin that separated the major arc complexes, all of which were telescoped and
accreted during late Ordovician through early Silurian time. The adjoining Avalon and Meguma Zones to
the east were subsequently tectonically assembled within the orogen by Mid Devonian time. The Viking
Project occurs within Long Range Inlier basement orthogneisses of the Humber Zone that immediately
adjoin the structural boundary between that zone and Dunnage Zone sequences to the east.
27
Figure 2: Lithotectonic Subdivisions of the Northern Appalachians
28
7.2
Regional Geology of White Bay Area
Figure 3 presents regional geology of the southern White Bay area as interpreted by Knight (2007). The
oldest mapped units in the area are those assigned to the Long Range Massif or Inlier, which are mainly
~1500Ma granitoid gneisses (Owen, 1986; Kerr, 2006). Younger granites (~1030-980 Ma) intruded these
gneisses as did late Precambrian (~613Ma) ultramafic and mafic intrusions associated with the Long Range
Dike complex. In the Viking Property area, these younger granites are mapped as the Main River Pluton,
which is correlated with the ca. 1036 Ma Apsy Granite that occurs several km to the northeast. Humber
Zone Sedimentary sequences of Cambro-Ordovician age unconformably overly basement rocks of the Long
Range Inlier and were in part allocthonously transported westward over the Inlier by late Ordovician
tectonism. The eastern edge of the Inlier in this area was intruded by the Silurian Devil’s Room Granite
(425± 10 Ma) and Taylor Brook layered gabbro (430.5±2.5 Ma).
The Doucers Valley Fault marks the eastern limit at surface of Inlier sequences in this area and is interpreted
to have accommodated substantial amounts of both strike-slip and reverse slip motion beginning in late
Silurian time and continuing episodically until early Carboniferous time (Kerr, 2006). Deering (1989)
considered this fault in the Viking area to be comprised of at least two or three parallel, steeply east-dipping
main structures with secondary splays crossing the Long Range Inlier and showing association with gold
mineralization. This fault zone is considered to mark a major tectono-stratigraphic break within the
Appalachian orogen and to have a complex reactivation history throughout Paleozoic time. Predominantly
sedimentary sequences of the, Silurian Sop’s Arm Group occur east of the Doucers Valley Fault, along with
a significant area of late Precambrian granite of the Gull Lake Intrusive Suite and a lesser area of
Carboniferous Anguille Group sedimentary rocks (Figure 3). Westward structural imbrication of Sop’s Arm
Group strata during later tectonism is well recognized (e.g. Kerr, 2006).
29
Figure 3: Regional Geology Map of the Southern White Bay Area
30
7.3
Property Geology
Figure 4 presents a simplified interpretation of Viking Property geology that is based on outcrop mapping,
trench mapping, and drillhole geology. The dominant rock types present are feldspar augen gneiss, granite
gneiss, diorite and gabbro. The augen and granite gneisses form part of the Main River Pluton and are
intruded by younger diorite and gabbro dikes and sills considered to be associated with the Long Range
Dyke complex. In the Thor Trend area pink potassium-feldspar augen structures that show strong shape
fabrics at cm scale and occur in a fine grained matrix of biotite, white feldspar, and quartz. Foliated, fine to
medium grained, white to beige granite that locally shows gneissic fabric cross cuts the augen gneisses and
contains up to 5% biotite in unaltered areas. Locally the granite gneiss has a very fine-grained aplitic texture
and contains pods of quartz-feldspar ± biotite pegmatite. Fabric development in the granite gneiss can be
subtle. Both granite gneiss and augen gneiss are locally cut by pegmatite veins up to 50 cm thick. Mafic
intrusive rocks also occur on the property and are characterised by fine to medium-grained diorite to coarse
gabbro that locally contains 50% to 70% amphibole. The mafic intrusions generally show distinct chilled
margins at contacts with augen gneiss and granite gneiss but also locally show strong effects of shearing
and associated fabric development along contacts. Topographic trends in the property areas are dominated
by regional scale northeast trending stream valleys that mark major shear zone trends crossing the metaigneous rocks of the area. Property scale mapping indicates that these features are secondary splays of the
major north-northeast striking Doucers Valley Fault that follows the Doucers Valley topographic lineament
and passes immediately adjacent to the eastern margin of the Viking claims. Several secondary splay
structures have been defined to date on the Viking Property and both can be traced as topographic features
to points of respective intersection with the Doucers Valley Fault. In addition to these major splays, detailed
mapping along the Thor Trend has shown that north-south trending zones of shearing are also present on
the property and that these, as well as some members of the northeast splay set of structures, have been the
focus of extensive alteration associated with both low- and high-grade styles of Au mineralization on the
property.
31
Figure 4: Viking Property Geology Map
32
7.4
Description of Mineralization Styles
Gold occurrences have been identified at various locations throughout the Viking Project but have been
noted mostly on the Viking and Kramer Properties to date, and all can be classified as having examples of
both the low-grade disseminated style and high-grade vein style of mineralization. To date, exploration
programs have investigated bedrock Au mineralization through focused trenching and core drilling
programs in six main areas, these being the Thor Trend, the Viking Trend, the Asgard trend the Odin’s
Hammer area and the Thor’s Cross area (Figure 5). The Thor Trend is the most important and best defined
of these mineralized areas.
Mineralization is best developed within the granite and augen gneiss units. Mineralization occurs within
the mafic unit as fairly restricted high-grade zones and as narrow, 1.0 to 2.0 m wide sericite-pyrite altered
shear zones with minor quartz veining. Two dominant styles of gold mineralization are observed on the
property. The first style consists of quartz veins containing 2% to 5% sulfides, dominantly pyrite-galenachalcopyrite-sphalerite and minor visible gold. These veins range from centimetres to about 2 metres in
width and the continuity along strike has not yet been determined. Gold grades within these veins range
from less than 1 g/t to 335 g/t. In the White Bottom Pond area gold-bearing quartz-sulfide veins generally
trend roughly E-W (100 to 110 degrees) and N-NW. At the Viking zone, large quartz-sulfide veins exposed
in trench 25 trend north-south (180 degrees). The Thor Vein consists of a strong zone of quartz-sulfide
veining localized around a fold nose. The second main style of mineralization consists of tan to orange
weathering, sericite-pyrite and locally carbonate altered rock with minor quartz veinlets. These zones
generally have a fissile appearance and contain a strong cleavage and slickensided surfaces oriented in
several directions. This style of mineralization is hosted in both augen gneiss and granite. Large zones
(100’s of metres to over 1000 metres in strike length) of sericite-pyrite-quartz-carbonate alteration trending
northeast (around 60 degrees) occur in the Viking area. In the White Bottom Pond area, similar zones trend
west to northwest (100 to 165 degrees) and the main Thor Trend strikes roughly north-south. Chip sampling
across this style of mineralization at Trench 1 returned 2.2 g/t Au over 7 metres. In addition to the 2 main
styles of mineralization described above, narrow, shallowly dipping sericite-pyrite+/-quartz altered shear
zones within mafic rocks locally contain 1 to 8.5 g/t Au, and quartz +/- feldspar veins associated with
granite and aplite have returned trace to 0.285 g/t Au. Zones of granite gneiss with 2% to 5% disseminated
pyrite with our without base metal sulfides also occur and are known to contain low-grade gold values.
33
Thor’s
Cross
Asgard
Figure 5: Au Soil Map with Rock Samples > 1 g/t
7.5
Description of the Thor Deposit
Gold mineralization and associated alteration within the Thor Trend have been defined to date through
geological and analytical results obtained from 8,348 assay composites derived from Northern Abitibi
diamond drilling and trenching datasets. Figure 6 shows the distribution of drillholes along the Thor Trend
and shows the location of the cross sections A-A’ and B-B’ shown in Figure 7 and Figure 8. Figure 7
provides a cross section through the high-grade Thor Vein and shows the halo of lower-grade mineralization
that surrounds the high-grade shoot. Figure 8 shows a more typical section across the Thor Trend illustrating
both high and low-grade styles of mineralization. The Thor Trend consists of mesothermal style quartz ±
iron carbonate ± sulfide veins and stockworks hosted by altered Precambrian intrusive rocks. Surface
mapping and drill core observations show that quartz veins within the Thor Trend commonly contain 2%
to 5% total sulfides consisting of pyrite, galena, chalcopyrite or sphalerite, and locally show trace amounts
of visible gold. Distribution of quartz veins and/or associated vein arrays is irregular along the 600 metre
length of the Thor Trend that is the focus of this Report and correlation of individual veins and arrays over
substantial distances is difficult. The Thor Vein, the best-mineralized discrete vein identified to date,
measures from a few centimetres in thickness near its strike extremities to approximately 4.0 m at its widest
area. The vein strikes east-west across the dominant north-south strike of the Thor Trend alteration zone
34
and dips at approximately 70 degree to the south. Other cross-trend quartz vein arrays are present within
the Thor Trend and occur as discrete entities. In contrast, low-grade Au mineralization defined by drilling
and trenching along the trend shows substantive strike and dip continuity at a low Au threshold value such
as 0.10 g/t Au. Gold grades within the quartz veins range from less than 1 g/t Au up to 335 g/t Au and
sheeted or stockwork vein sets surrounding high-grade veins typically contain 0.5% - 2% pyrite-galenachalcopyrite-sphalerite along with minor visible gold. Iron carbonate is locally present in both high-grade
veins and in mineralized vein stockworks. High-grade veins ranging from a few 10’s of centimetres to a
few metres in width are common and are typically surrounded by a halo of veinlets containing lower-grade
mineralization. At outcrop scale, veins and veinlets typically display en-echelon, and pinch and swell
patterns and can occur in multiple orientations. Some high-grade quartz veins are localized at fold noses.
High-grade veins occur in all 3 of the main rock types (granite, augen gneiss, diorite) whereas larger lowergrade zones of mineralization are best developed within the granite and augen gneiss units, and poorly
developed within the diorite. Figure 9 presents a detailed geological plan of the Thor Vein’s surface
expression. The Thor Vein is well defined and continuous to a depth of at least 170 metres below surface
and 10 additional discrete higher-grade mineralized zones that are characterized in part by vein arrays and
stockworks have been identified along the Thor Trend. Some of these show steeply south plunging
geometry similar to the Thor Vein but others trend north-south and are broadly parallel with the steeply
east dipping main structural grain within the alteration zone. Barren quartz veins also occur in the area.
Figure 10 shows vein strike orientations from surface mapping and these identify a prominent NE trending
set of veins, a strong E-W set of veins and subordinate NNE-trending veins. Vein dips are commonly to the
south and east. Figure 11 shows photographs of mineralization and alteration from the Thor Trend.
35
Figure 6: Thor Trend Drill Hole Location Map
36
Figure 7: Cross Section A-A' Thor Vein
37
Figure 8: Cross Section B-B' Thor Trend
38
Figure 9: Surface Map of the Thor Vein Prepared by Northern Abitibi
39
Figure 10: Orientation Diagram for the Thor Trend Quartz Veins
40
Figure 11: A) High-grade Thor Vein exposed at surface. B) Low-grade sheeted vein zone hosted in granite. C) Close up of
quartz-sulfide vein with gold grains. D) Close up of a sulfide rich portion of the Thor Vein.
7.6
Other Mineralized Trends
Five other gold bearing mineralized trends have been discovered on the Property in addition to the Thor
Trend. These are the Viking Trend, Thor’s Cross, Asgard Trend, Odin’s Hammer and Kramer. Results of
trenching, sampling and core drilling, in these areas have demonstrated that both higher-grade quartz vein
and disseminated low-grade styles of Au mineralization are present. The Viking Trend was investigated by
nine drillholes during 2010 and 3 drillholes during 2011. These returned significant intervals of altered and
quartz-sulfide veined augen gneiss, foliated granite and deformed mafic rocks. Photographs from the Viking
Trend are shown in Figure 12. Trenching along Viking has returned low Au grades ranging between 0.10
and 0.40 g/t over continuously sampled intervals of up to 40 m, and high-grade results including a grab
sample from a large boulder of altered granite from the northeast end of the Viking Trend, which returned
12.0 g/t Au, and a channel sample grading 9.9 g/t Au and 52 g/t Ag over 1.4 m. This northeast trending
zone of anomalous Au in soil geochemistry results appears to be related to a moderately east-dipping reverse
fault, which splays into the Doucers Valley Fault.
41
Figure 12: Photos from the Viking Trend. A) View of Viking Pond looking south which parallels the Viking Trend (located on the
left side of the photo). B) Trench 25 looking west. Note the strong quartz veining throughout the outcrop. C) Close up of Trench
25 showing the strong-sheeted veining and subordinate conjugate vein set. D) and E) Laminated quartz vein containing wallrock
parallel rock fragments and iron carbonate +/- feldspar. The wallrock surrounding the quartz vein is soft and strongly sericite
altered.
At Kramer, a 30 m wide alteration zone has been discovered in Precambrian granite hosting quartz-sulfide
stockwork and locally carrying fine visible gold. Subsequent trenching and rock sampling has verified the
existence of multiple broad zones (5 to 30 m) of alteration and stockwork quartz/sulfide veins, stringers and
fracture fillings. These alteration zones are similar in style to that observed at Thor and other prospects on
42
the Viking Property. At Kramer, the host rock to mineralization and alteration is variable, where fracture
and alteration zones transect the Precambiran-Cambrian unconformity with mineralization hosted locally
within younger Cambrian quartzite and argillites. This is similar to the host rock environment as observed
to the north at Kermode’s Rattling Brook Gold Deposits. The work completed to date at Kramer has outlined
a near surface, open ended, north to northeast trending zone of intrusion hosted gold mineralization,
comprising high-grade precious metal veins as well as associated lower-grade haloes. The mineralized area,
which encompasses the Kramer, Whiskey Jack, Quartzite and Discovery Zones, has been established over
an area measuring a minimum of 1300 m in length and 100 m in width and remains open to the northeast
and southwest.
43
8.0
Deposit Type
The tectonic setting, host rocks, vein and alteration characteristics at the Viking Project are consistent with
an orogenic or mesothermal style of mineralization for both the veins and related stockworks. The deposit
host similar characteristics as numerous intrusive hosted gold deposits in Proterozoic or Archean granitegreenstone terrains worldwide. These deposits typical have temporal overlap with large-scale regional
metamorphic events, associated intrusive activity, and often show a strong structural control on high-grade
shoots. These deposits typically have a substantial down dip plunge extent to the mineralization which is
seen on the high-grade Thor Vein to the limits tested by drilling.
Mineralization and alteration along the Viking Trend contains much higher Te-Bi-Mo-Se-Tl-W than
mineralization along the Thor Trend. This trace element association is typical of reduced intrusion related
gold deposits (e.g. Lang et al., 2000), and some orogenic gold deposits (Groves et al., 2003), and the origin
of this zone remains uncertain.
44
9.0
Exploration
9.1
Introduction
Systematic exploration has been carried out on the Viking (2007 to 2011) and Kramer (2009 to 2013)
Properties by previous owners Northern Abitibi and Spruce Ridge. The bulk of this exploration work has
been fully disclosed in previous reports by Cullen and Harrington (2011) and Ebert and Giroux (2011) and
associated mineral assessment reports on file with the Department of Mines and Energy, Government of
Newfoundland and Labrador. The work is summarized in this section, with particular focus on prospecting,
trenching, channel sampling and geological mapping. Details of the diamond drilling programs on each
property are presented in section 10.0 below.
9.2
Viking Property
9.2.1
2007-2008 Exploration Programs
In 2007, Northern Abitibi constructed a 6.5 km long access trail from the west side of the property and
excavated 6 trenches (Trenches 1 to 6). A total of 40 rock chip and grab samples were collected and four
gold bearing areas were identified. Assay results ranged from below detection (5 parts per billion) to a
maximum of 246.6 g/t Au from Trench 1. Chip samples from Trench 1 returned 2.2 g/t Au over a sampled
interval of 7.0 m. Trench 6 of the program uncovered a portion of the northeast striking Viking Trend and
exposed sericite-carbonate altered fine-grained granite containing sheeted and stockwork quartz veinlets
with 1-3% pyrite-chalcopyrite-galena. Three samples from these boulders returned 1.1 g/t Au, 2.2 g/t Au,
and 26.6 g/t Au and similar altered boulders and subcrop were traced intermittently for over 200 metres
along a prominent linear feature that measures approximately 900 m in length.
In 2008 an additional 1.9 km of access trail was completed, 20 more trenches (Trenches 7 to 26) were
excavated, and 10 holes for 575 m of drilling were completed. A total of 247 rock samples were taken and
several zones of high-grade and low-grade gold mineralization were identified. Results of the trench
sampling are shown in Table 6.
Table 6: Select sample results from the 2008 trenching program at Viking
Location
Trench 1
Description
Granite with irregular quartz-sulfide veins
Width (m) Au g/t
0.5
79.5
Trench 14 Folded quartz veins in sericite altered augen gneiss
1
84.4
Trench 14 Folded quartz veins in sericite altered augen gneiss
2
7.7
Trench 14 Sericite altered augen gneiss with quartz veins
9
0.5
Trench 15 Augen gneiss with quartz veinlets and pyrite
1
1.1
Trench 16 Sericite-pyrite altered augen gneiss
1
1.7
Trench 16 Sericite-pyrite altered augen gneiss with quartz veins
8
0.8
Trench 18 Sericite-pyrite altered augen gneiss with quartz veins
0.8
2.0
45
Trench 20 Sericite-pyrite altered augen gneiss
grab
2.3
Trench 23 Boulder of granite cut by quartz veinlets
grab
3.3
Trench 7
Quartz boulder with sulfides
grab
314.1
Trench 7
Granite cut by thin quartz veinlets with abundant pyrite
1.0
35.0
Trench 7
Sericite-pyrite altered augen gneiss with quartz veinlets 1.0
2.7
Trench 7
Sericite-pyrite altered augen gneiss with quartz veinlets 1.3
2.1
Trench 7
Silicified and sericite altered granite and augen gneiss
4.0
1.2
Trench 9
Quartz-sulfide vein
grab
335.4
Trench 9
Trench 9
Same quartz-sulfide vein as above
0.6 metre wide quartz sulfide vein
0.75
grab
308
18.6
Trench 9
Same quartz-sulfide vein as above
grab
16.4
Trench 9
Sericite altered rock with quartz veinlets
1
8
Trench 9
Sericite-carbonate altered rock with quartz veinlets
2.2
7.9
Trench 9
Sericite-carbonate altered rock with quartz veinlets
4
1.9
The zones targeted by the 2008 drill program had never been drill tested previously, and zones of very
significant gold mineralization were confirmed in the exploration drilling and are summarized in section
10.0.
9.2.2
2009 Exploration Program
During 2009 Northern Abitibi completed 3,612.6 m of diamond drilling in 35 holes, excavated 15 new
trenches (trenches 27 to 41), carried out geologic mapping, and constructed a 2.5 km long access road
directly connecting the Thor Trend area to Highway 420 on the east side of the claims. Select results from
the 2009 trenching program are summarized in Table 7 and the location of 2009 and earlier trenches along
the Thor Trend are shown in Figure 13. The 2009 trenching program continued to define known zones of
gold mineralization and significantly expand the Thor Trend.
Table 7: Select sample results from the 2009 trenching program
Location
Trench 9
Trench 9
Trench 9
Trench 9
Trench 9
Trench 9
Trench 9
Trench 9
Trench 9
Description
New Thor exposure – quartz sulfide vein
New Thor exposure – quartz sulfide vein and
wall rock
New Thor exposure - altered veined granite
Thor Zone – average of 61 mineralized channel
samples
46
Width (m)
0.4
0.62
0.8
0.5
1.6
Au g/t
98.5
60.4
41.3
30.3
25.2
1.0
0.6
0.5
22.9
22.2
13.2
13.0
Location
Trench 27
Trench 27
Trench 27
Trench 28
Trench 28
Trench 28
Trench 28
Trench 28
Trench 28
Trench 28
Trench 28
including
Trench 28
including
Trench 30
Trench 30
Trench 30
Trench 30
Trench 30
Trench 30
Trench 30
Trench 31
Trench 31
Trench 31
Trench 32
Trench 32
Trench 33
Trench 33
Trench 33
Trench 33
Trench 33
Description
20 cm quartz-sulfide vein in altered augen
gneiss
Altered quartz veined granite
Altered granite and augen gneiss
Quartz sulfide vein in altered granite
Altered granite with quartz veins
Altered veined granite
Sheared altered granite with quartz veins
Quartz sulfide vein
Quartz sulfide vein
Quartz sulfide vein in altered gneiss
Altered silicified augen gneiss
Altered veined augen gneiss
Altered veined augen gneiss
Altered and veined granite and augen gneiss
20 cm quartz vein
20 cm quartz vein
Quartz-sulfide vein
Quartz-sulfide vein
Altered mafic and granite
Altered augen gneiss
Altered augen gneiss
Width (m)
0.4
Au g/t
9.4
0.7
8.1
grab
grab
grab
0.9
2.0
1.1
1.0
6.4
1.0
5.2
1.1
grab
grab
grab
0.65
4.0
2.1
0.8
1.2
1.0
7.05
0.4
0.4
0.7
0.3
2.6
2.0
1.3
5.4
1.0
120.1
57.8
37.1
19.0
14.6
8.2
7.0
5.1
13.4
4.3
12.8
148.1
83.0
44.3
21.0
12.7
8.6
3.9
13.2
10.4
2.0
1
0.9
30.1
10.4
1.1
1.4
1.0
A simplified geologic map of the Thor Trend is shown in Figure 14. The dominant rock type in the area
consists of a package of foliated augen gneiss and fine-grained felsic granite. This granitic package is
inferred to be Proterozoic in age, belonging to the Grenvillian age Long Range Inlier. These rocks are cut
by a shallow north-dipping dike or sill of diorite to gabbro (locally amphibolite). The diorite dike has chilled
margins, is weak to moderately foliated, and could be related to a Grenvillian age mafic intrusive event, or
perhaps to the Precambrian (~613Ma) Long Range Dikes.
47
Figure 13: Location of 2007 to 2009 trenches along the Thor Trend
Alteration and mineralization at Viking cut and post-date the diorite dike. On the east side of the sheet an
inferred Ordovician to Cambrian age package of meta-sedimentary rocks sits unconformably over the
Grenvillian granitic rocks and mafic dikes. These rocks consist of a pebbly sandstone with rounded pale
blue quartz pebbles (2 to 10 mm) in a sand size quartz rich sandstone. This pebbly sandstone in inferred to
sit at the main unconformity and is on the order of 5 to 15 m wide. Zones of gold mineralization are known
to occur within this quartz rich sandstone on the Viking Property. East of this unit is a fine-grained strongly
deformed phyllite, and then a package of gray limestone and dolomite. Shearing and deformation within
the phyllite unit suggest a major strand of the Doucer’s Valley Fault passes through it.
The mapped zone of alteration and quartz veining (yellow dashed line on Figure 14) define a north-south
trending zone at least 1000 metres in length that is termed the Thor Trend. Several smaller zones of east-
48
west and northwest trending alteration following localized shear zones appear to intersect or bleed off of
the main north-south zone.
Figure 14: Simplified geology of the Thor Trend
9.2.3
During 2010 Northern Abitibi completed a total of 9734.8 m of diamond core drilling in 58 holes (holes 46
to 103), completed 13 trenches (trenches 42 to 54), took 819 surface rock, and 243 soil samples, and
completed substantial surface geological mapping (see Figure 15). A high-resolution elevation survey using
a Light Detection and Ranging (LiDAR) Sensor has been flown over the project in combination with highresolution (15cm) Ortho imagery.
49
Figure 15: Location of 2010 Trenches
The trenching and mapping programs significantly expanded the geologic knowledge of the property and
uncovered mineralization in numerous areas outside of the Thor Trend. A total of 5 major exploration
targets with significant size potential have been identified on the property, including the Thor Trend. These
additional targets include the Asgard Trend, Thor’s Cross, Odin’s Triangle, and the Viking Trend. There
remains excellent potential to discover additional significant exploration targets in areas of the Viking
Property that have seen limited exploration work to date. All 5 of the large exploration targets at Viking
coincide with gold-in-soil anomalies, most coincide with airborne geophysical magnetic lows as the Thor
Trend does, and all have been partially exposed by trenching. Each are briefly described below.
Thor Trend
The Thor Trend is a north-south oriented mineralized zone that has been traced by trenching and sampling
for 1500 m and it remains open to the north and south. Drilling shows the north part of the Thor Trend has
excellent potential to host bulk minable style gold mineralization in a zone that is at least 600 m long (and
50
open to the north), 30 to 80 m wide, and at least 200 m deep (open at depth). Numerous zones of high-grade
mineralization have been intersected along the Thor Trend and these continue to be evaluated for their
underground minable potential.
Asgard Trend
The Asgard Trend is a north-south oriented mineralized zone located 250 m east of the Thor Trend. The
zone has been traced for 400 m by trenching and remains open to the north where strong gold-in-soil
anomalies continue for an additional 500 m. Trenching has exposed zones of sericite-pyrite alteration and
quartz veining with widths of 20 to 40 metres. Trench 47 exposes several zones of alteration within an area
80 m wide. Surface sampling has identified both high-grade and low-grade gold mineralization along this
trend. Two samples from an exposed quartz-sulfide vein returned 18.5 and 42.9 g/t Au. Thirteen samples
returned gold values between 0.6 and 1.9 g/t Au, and approximately 144 samples returned gold values
below 0.4 g/t.
Thor’s Cross
Thor’s Cross is a 1000 m long east-west trending zone of alteration and gold mineralization that intersects
the central part of the Thor Trend. On the west side the Thor’s Cross zone intersects Odin’s Triangle and
possibly the Viking Trend in an area where the controls on mineralization are still under investigation.
Thor’s Cross is approximately 30 to 50 m wide and consists of pyritic granite and augen gneiss with variable
sericite alteration and minor quartz veining. Surface sampling on the eastern side of Thor’s Cross,
surrounding the Thor Trend, has returned modest gold grades up to 0.6 and 0.9 g/t Au, whereas sampling
on the west side of Thor’s Cross has returned higher-grades, up to 2.3 and 8.7 g/t Au.
Odin’s Triangle
Odin’s Triangle contains several zones of alteration and mineralization within an area roughly 500 m by
350 m. The area is intersected by Thor’s Cross on the east side and the Viking Trend on the west side. The
geometry, controls, width, and grades of mineralized zones within the triangle remain poorly defined. A
north-south orientation, parallel to the Thor and Asgard Trends, is possible. Surface sampling at Odin’s
Triangle has returned a high of 26.6 g/t Au, with several samples ranging from 0.5 to 3.3 g/t Au.
Viking Trend
The Viking Trend is a northeast-oriented zone that has been partially traced by soil data, airborne magnetics,
and surface mapping and sampling over a strike length of 3000 metres. Large quartz-sulfide boulders are
abundant at the southwest end of the Viking Trend along the southeast shoreline of a lake, and historic
sampling in this area has returned several samples grading from 0.5 to 6.9 g/t Au over an area 600 m long.
Trenching in the area in 2009 exposed quartz sulfide veins and stockwork in outcrop, and limited sampling
returned grades up to 2.2 g/t Au. Trenches 51, 52, and 53 have been excavated in the central part of the
Viking Trend and have intersected zones of alteration and low-grade mineralization with up to 1.0 g/t Au.
Trench 44, located at the far northeast end of the Viking Trend, has exposed variably altered rocks over a
51
40 m wide zone. Channel sampling at trench 44 has encountered elevated gold values up to 0.9 and 1.0 g/t
Au.
9.2.4
In March 2011, an initial Mineral Resource Estimate was completed for the Thor Trend Deposit by Cullen
and Harrington (2011). During May to August 2011 Northern Abitibi also completed 8 trenches (trenches
55 to 62), 4,698.2 m of drilling in 25 holes (holes 104 to 128), and an IP survey over the Property. A map
showing the location of 2011 drilling and trenching and the IP survey location is shown in Figure 16.
Figure 16: Location of 2011 drilling, trenching, and IP survey
In March 2011 a Mineral Resource Estimate was completed on the Thor Trend based on all of the drilling
up to 2010 (holes 1 through 103), and numerous surface channel samples. The resource estimation project
was carried out by Mercator Geological Services Limited (Mercator) of Dartmouth, Nova Scotia and
Independent Qualified Person Michael P. Cullen, M.Sc., P. Geo. conducted the resource estimation. This
initial Mineral Resource Estimate is described in detail in the 2011 Technical Report by M. Cullen, and M.
Harrington titled “MINERAL RESOURCE ESTIMATE FOR THE THOR TREND GOLD DEPOSIT
NORTHERN ABITIBI MINING CORP.”. Modeling was performed using the Gemcom Surpac® 6.1.4
modeling software package with grades estimated by inverse distance squared interpolation from 1.0 metre
52
down hole assay composites combined with surface channel samples. Block size was 5 metres (x) by 5
metres (y) by 5 metres (z) with sub-blocking at 2.5 m (x) by 2.5 m (y) by 2.5 m (z).
Nine discrete high-grade gold solids were modeled that typically grade in excess of 2.0 g/t Au and these
occur within a large alteration halo characterized by gold levels between 0.05 g/t and 1.0 g/t Au. Two lowgrade solids and a peripheral domain were incorporated in the block model. For high-grade mineralization
values were capped at 28 g/t and for low-grade mineralization, values were capped at 5 g/t. All resources
were assigned to the Inferred category and are summarized in Table 8. At a 0.2 g/t Au cut-off, an Inferred
Mineral Resource of 6,284,000 tonnes grading 0.61 g/t Au was determined (123,242 ounces).
Table 8: March 2011 Thor Trend Inferred Mineral Resources
Threshold
0.10
0.20
0.50
1.00
1.50
2.00
3.00
Tonnes (Rounded)
11,710,000
6,284,000
1,738,000
577,000
371,000
265,000
155,000
Au g/t
0.39
0.61
1.41
2.92
3.87
4.72
6.33
Grams
4,566,900
3,833,240
2,450,580
1,684,840
1,435,770
1,250,800
981,150
Ounces*
146,829
123,242
78,788
54,169
46,161
40,214
31,545
*High-grade domains are spatially constrained and capped at 28 g/t gold. Low-grade domains capped at 5 g/t gold.
During May to August 2011 Northern Abitibi completed 8 trenches (trenches 55 to 62) testing areas to the
north of the Thor Trend, along the Viking Trend and within Odin’s Triangle. Zones of alteration and minor
gold mineralization were uncovered to the north of the Thor Trend, whereas more significant zones of
mineralization were uncovered along the Viking Trend and at Odin’s Triangle. Three trenches were
completed along the northeastern end of the Viking Trend, located roughly 2 kilometres west of the Thor
Trend. A new zone of alteration and mineralization has been uncovered over an area 400 m long by 100 m
wide and the zone remains open along strike. Surface sampling indicates the entire zone contains anomalous
gold with values ranging from trace to 1 g/t, and several high-grade gold veins were identified. Channel
sampling across the higher-grade veins has returned values of 9.9 g/t Au and 52 g/t Ag over 1.4 m, 5.2 g/t
Au over 1 metre, 3 g/t Au and 17.3 g/t Ag over 1.1 m, and a grab sample of a mineralized vein returned 10
g/t Au and 8.1 g/t silver. A grab sample from a large boulder of altered granite from the northeast end of
the Viking Trend has returned 12.1 g/t Au. Trenching of an induced polarization geophysical anomaly in
the central part of the Viking Property has encountered a high-grade zone grading 5.5 g/t Au over 1.3 m.
This mineralized zone occurs within a larger 50-metre wide zone of pyrite-bearing alteration containing
gold values ranging from trace to 1.9 g/t.
Prospecting has discovered a new area of mineralization located 100 m north-northeast of the Asgard trend
near the eastern edge of the claim block. This zone is interpreted to represent the northern continuation of
the Asgard trend. Sericite altered and pyritic-quartz veined granite has been found and sampling of outcrop
from the zone has returned gold values up to 1.3 g/t opening up a new zone for further work.
53
In August 2011, a 13.8 line kilometre time domain pole-dipole 2D and 3D Induced Polarization/Resistivity
survey was completed over the Viking Property. The field survey was conducted by Eastern Geophysical
with results processed by processed and modeling by SJV Geophysical Consultants. A 50-metre electrode
spacing was used and equipment included two ELREC IP-6 receivers, a Walcer TX KW10 transmitter, the
Walcer MG-12, a 10 KVA generator and a Phoenix IPT-1 transmitter. The location of the survey lines is
shown on Figure 16. Figure 17 shows a map with the modeled 3D chargeability data at 50 metres depth.
Figure 18 shows a map with the modeled 3D resistivity data at 50 m depth.
Figure 17: Plan Map 3D Chargeability Model at 50m depth
54
Figure 18: Plan Map 3D Resistivity Model at 50m depth
Several geophysical exploration targets have been identified including a 330 m long chargeability anomaly
at the southern projection of the Thor Trend, which has not been tested by drilling. The chargeability
anomaly is interpreted to be related to sulfide-bearing intrusive rocks and the target has significant potential
to host additional gold resources along the Thor Trend. Several chargeability anomalies occur west and east
of the Thor Trend and some correspond to mineralized surface exposures indicating potential for additional
mineralized zones in these areas. The 2D geophysical results over the southern and western part of the
property have identified 3 large chargeability anomalies with strike lengths up to 1000 m and widths up to
100 m. Drillhole 127 tested one of these anomalies and returned significant intersections of anomalous gold
mineralization including 11.8 m grading 0.2 g/t Au from 43.2 to 55 m depth and 47.5 m grading 0.2 g/t Au
from 85 to 132.5 m depth. This hole demonstrates that at least some of the chargeability anomalies are
associated with gold mineralization and highlights the exploration potential of the area.
55
A second Mineral Resource Estimate was initiated by Northern Abitibi on December 30, 2011, following
the completion of 20 additional drillholes into the Thor Trend (Ebert and Giroux, 2011).
Results of the December 30, 2011 Mineral Resource Estimate are summarized in Table 9 below.
Table 9: Thor Trend - Mineral Resources as of December 30, 2011
Tonnes> CutAu Cut-off
off
(g/t)
(tonnes)
Grade > Cutoff
Au (g/t)
Contained
Ounces Au*
Indicated
0.10
3,593,000
0.87
100,000
0.20
3,232,000
0.95
98,000
0.50
1,817,000
1.42
83,000
1.00
937,000
2.09
63,000
2.00
357,000
3.19
36,600
3.00
147,000
4.33
20,500
Inferred
0.10
2,459,000
0.59
47,000
0.20
2,123,000
0.66
45,000
0.50
847,000
1.15
31,000
1.00
350,000
1.79
20,000
2.00
94,000
2.90
8,800
3.00
29,000
4.10
3,800
At a cut-off grade of 0.20 g/t Au the Thor Trend Deposit contains an Indicated Mineral Resource of 98,000
ounces Au (3,232,000 tonnes at an average grade of 0.95 g/t) plus an Inferred Mineral Resource of 45,000
ounces Au (2,123,000 tonnes at an average grade of 0.66 g/t). These new results represent a 55% increase
in grade over the previous estimate and a 16% increase in contained ounces. Approximately 80% of the
contained gold ounces were upgraded from the Inferred to the Indicated category.
9.3
Kramer Property
Since 2009, Spruce Ridge has completed prospecting and geological mapping, excavated 9 trenches and
drilled 28 hole totalling 3,651.8 m (Table 12 and Figure 19). Exploration work has led to the discovery of
the Kramer, Kramer Northeast, Quartzite, Whiskey Jack and Discovery zones. Gold mineralization is
currently outlined over a strike length of 1.3 kilometres.
9.3.1
2009 Exploration Programs
56
During the summer 2009, workers constructing an access road to the Viking Property uncovered a zone at
least 30 m in width within altered granite containing at least three quartz-sulfide rich veins measuring up
to 30 cm in width and locally carrying fine visible gold; grab samples returned assays grading up to 49.78
g/t Au and 111.2 g/t Ag (Froude, 2010).
Follow-up work to the discovery included completion of a 157 line km airborne magnetic and VLF survey,
prospecting and collection of 91 rock grab samples.
The airborne magnetic data reveals the presence of several northeast to north trending linear anomalies that
are interpreted to represent faults or shear zones cutting the underlying granite. These structures are similar
to those on the Viking Property that are known to host gold.
Based on the favourable results of the prospecting program led to excavation of two trenches at the Kramer
discovery site and grab sampling of the outcrop. Trenching exposed a broad (up to 30 m) zone of altered
and quartz veined granite gneiss.
9.3.2
During 2010 additional prospecting and rock grab sampling (43 samples) was completed over the property
resulting in the discovery of the Whisky Jack Prospect. Assays up to 8.06 g/t Au were obtained from
prospecting (Froude 2011).
Spruce Ridge completed extensive trenching (9 large trenches) of anomalous soil and rock samples over
the Kramer Property, including the recently discovered Whisky Jack Prospect. The exposed bedrock was
washed and 237 channel samples were collected. Channel sample results from Whiskey Jack include up to
45.16 g/t Au over 1.00 m from base metal rich quartz veining. At least three zones of fine-grained
mineralized intrusive up to 10 metres in apparent thickness and of unknown strike length were exposed in
association with the high-grade Whiskey Jack vein. The fine-grained zones all returned significant gold
values including; 1.90 g/t Au average from 21 random 0.50 m long saw cut channel samples ranging from
0.189 g/t Au to a maximum of 6.11 g/t Au; and a second zone returned an average of 2.98 g/t Au from 14
random 0.50 m long saw cut channel samples ranging from 0.15 g/t Au to 11.19 g/t Au. The high-grade
Kramer vein was exposed and sampled over a 70 metre length and includes saw cut channel sample assays
up to 32.10 g/t Au and 31.79 g/t Au over 0.18 m (Froude, 2011).
Spruce Ridge also completed 14 diamond drillholes (KR-10-01 to 14) totalling 1,582.2 metres.
9.3.3
2012 and 2013 Exploration Program
During 2012, Spruce Ridge completed additional trenching and channel sampling generally following the
trends of altered and mineralized shear/fault zones that transect the Kramer area. A total of 253 rock grab
and channel samples were collected (Froude, 2013).
In 2013, Spruce Ridge completed 14 diamond drillholes (KR-13-15 to 28) totalling 2,051.8 m at the Kramer
Prospect (Froude, 2014).
57
Figure 19: Kramer Area Drillhole and Trench Locations
58
10.0 Drilling
A total of 22,607.50 m of drilling in 160 holes have been completed on the Viking Project to date, including
18,973.80 m in 132 holes at the Viking Property and 3,633.70 m in 28 holes at the Kramer Property (Table
10).
The Mineral Resources presented in Section 14 rely on historical drilling data that has been verified and
validated by Anaconda staff and contractors and has been subject of the previous report by Ebert and Giroux
(2011).
Table 10: Drillhole locations and parameters for the Viking Project
Property
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Drillhole ID
SM-89-1
SM-89-2
SM-90-1
08-VK-01
08-VK-02
08-VK-03
08-VK-04
08-VK-05
08-VK-06
08-VK-07
08-VK-08
08-VK-09
08-VK-10
09-VK-11
09-VK-12
09-VK-13
09-VK-14
09-VK-15
09-VK-16
09-VK-17
09-VK-18
09-VK-19
09-VK-20
09-VK-21
09-VK-22
09-VK-23
09-VK-24
09-VK-25
09-VK-26
09-VK-27
UTM83 Easting
498546.44
498786.32
498248.87
498241.70
500660.48
500659.89
500651.91
500659.89
500653.43
500680.56
500664.46
500661.66
500702.52
500692.89
500693.41
500706.05
500696.53
500695.55
500651.53
500647.26
500648.11
500652.31
500653.21
500622.91
500653.08
500652.63
500646.06
500647.74
500676.10
500653.08
UTM83 Northing
5503991.29
5504054.61
5503805.24
5503786.22
5504650.34
5504640.26
5504651.20
5504639.26
5504572.14
5504579.98
5504603.56
5504617.23
5504273.41
5504373.82
5504373.27
5504357.84
5504455.92
5504455.29
5504428.90
5504733.29
5504732.64
5504704.73
5504704.19
5504724.26
5504644.18
5504643.26
5504765.98
5504765.19
5504475.41
5504459.66
59
Elevation
389.00
427.00
384.00
440.71
440.69
440.61
442.00
440.61
442.12
434.66
437.36
438.51
376.99
397.66
397.30
388.57
419.35
419.31
424.39
443.04
443.08
442.39
442.31
444.61
441.22
441.07
443.64
443.62
428.47
432.69
Azimuth
335
335
330
0
0
0
0
0
35
320
160
175
340
320
320
320
230
230
50
76
300
300
300
120
20
0
300
300
310
50
Dip
-50
-50
-45
-45
-60
-60
-45
-90
-45
-45
-45
-60
-50
-45
-70
-65
-45
-70
-45
-44
-65
-45
-65
-45
-60
-90
-45
-65
-45
-45
Depth
125.60
117.20
110.40
89.50
55.00
40.00
64.50
71.00
58.00
35.00
38.00
67.50
56.50
57.50
67.50
130.50
111.00
211.00
99.00
76.00
59.00
55.00
110.00
61.00
50.00
50.00
63.20
62.00
118.00
70.50
Property
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Drillhole ID
09-VK-28
09-VK-29
09-VK-30
09-VK-31
09-VK-32
09-VK-33
09-VK-34
09-VK-35
09-VK-36
09-VK-37
09-VK-38
09-VK-39
09-VK-40
09-VK-41
09-VK-42
09-VK-43
09-VK-44
09-VK-45
10-VK-100
10-VK-101
10-VK-102
10-VK-103
10-VK-46
10-VK-47
10-VK-48
10-VK-49
10-VK-50
10-VK-51
10-VK-52
10-VK-53
10-VK-54
10-VK-55
10-VK-56
10-VK-57
10-VK-58
10-VK-59
10-VK-60
10-VK-61
10-VK-62
10-VK-63
UTM83 Easting
500652.21
500621.49
500645.64
500645.43
500633.71
500574.91
500633.49
500632.89
500632.79
500620.28
500604.96
500611.82
500661.84
500661.25
500657.59
500658.09
500693.94
500640.10
500623.24
500560.52
500619.54
500550.61
500673.97
500636.40
500643.91
500583.49
500611.70
500587.17
500586.41
500612.08
500597.85
500584.40
500676.80
500597.39
500669.36
500646.79
500622.45
500596.82
500596.37
500629.82
UTM83 Northing
5504459.11
5504392.95
5504628.91
5504628.45
5504665.28
5504753.72
5504665.07
5504600.66
5504600.26
5504593.90
5504525.47
5504473.80
5504363.29
5504362.73
5504296.82
5504296.82
5504136.26
5504282.09
5504704.53
5504659.01
5504629.37
5504581.48
5504604.63
5504576.91
5504520.18
5504469.24
5504428.55
5504229.52
5504228.39
5504428.13
5504367.29
5504230.75
5504313.70
5504366.75
5504249.59
5504229.91
5504331.02
5504313.52
5504313.10
5504216.36
60
Elevation
432.62
420.55
441.24
441.19
441.32
449.43
441.26
439.14
439.14
439.60
450.08
446.05
401.34
401.65
386.99
386.99
354.73
386.87
440.71
449.76
442.19
448.51
437.51
442.01
446.83
446.07
432.16
385.27
385.14
432.28
417.54
385.24
387.17
417.47
378.85
373.63
402.19
400.87
400.73
372.81
Azimuth
50
50
20
0
90
120
90
24
0
0
90
90
50
50
50
50
50
50
43
48
50
50
225
0
0
50
49
50
50
49
50
50
50
50
50
50
49
50
50
50
Dip
-65
-45
-73
-90
-45
-75
-70
-73
-90
-90
-60
-50
-50
-70
-50
-70
-50
-70
-51
-62
-50
-70
-45
-90
-90
-70
-51
-50
-70
-50
-70
-50
-50
-65
-50
-50
-50
-50
-70
-50
Depth
92.00
157.00
56.00
71.00
100.00
245.00
77.00
119.00
122.00
140.00
170.00
98.00
95.00
65.00
96.40
125.00
196.00
137.00
74.00
200.00
80.00
212.00
47.00
215.00
206.00
272.00
167.00
194.00
269.00
198.00
239.00
98.60
89.00
272.00
161.00
171.90
161.00
197.00
260.00
185.00
Property
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Drillhole ID
10-VK-64
10-VK-65
10-VK-66
10-VK-67
10-VK-68
10-VK-69
10-VK-70
10-VK-71
10-VK-72
10-VK-73
10-VK-74
10-VK-75
10-VK-76
10-VK-77
10-VK-78
10-VK-79
10-VK-80
10-VK-81
10-VK-82
10-VK-83
10-VK-84
10-VK-85
10-VK-86
10-VK-87
10-VK-88
10-VK-89
10-VK-90
10-VK-91
10-VK-91A
10-VK-92
10-VK-93
10-VK-94
10-VK-95
10-VK-96
10-VK-97
10-VK-98
10-VK-99
11-VK-104
11-VK-105
11-VK-106
UTM83 Easting
500578.19
500678.15
500600.38
500655.63
500599.21
500604.42
500703.97
500635.63
500756.48
500635.63
500756.48
500613.74
500774.58
500661.69
500668.54
500661.69
500668.54
500661.69
500581.12
500327.79
498410.45
500504.21
498420.57
500580.15
498097.20
498096.57
500591.50
498066.86
500619.81
498025.42
500842.19
498025.42
500648.21
500597.96
498232.96
499838.86
500646.50
500585.10
500629.00
500577.00
UTM83 Northing
5504518.06
5504197.77
5504114.37
5504731.09
5504114.93
5504751.98
5504270.16
5504935.35
5503782.38
5504935.35
5503782.38
5505005.72
5503737.38
5504407.28
5504217.11
5504407.28
5504217.11
5504407.28
5504605.91
5504229.55
5503977.56
5504607.32
5503976.96
5504730.23
5503766.35
5503765.58
5504844.34
5503715.51
5504859.49
5503676.34
5504809.71
5503676.34
5504524.79
5504534.39
5503581.24
5504554.88
5504589.50
5504571.50
5504536.00
5504493.00
61
Elevation
455.23
364.10
376.65
442.94
376.73
447.29
376.86
444.40
341.57
444.40
341.57
442.73
334.53
415.50
367.66
415.50
367.66
415.50
443.83
428.81
383.00
454.37
383.31
447.76
384.88
384.90
442.77
384.86
438.06
383.13
409.46
383.13
446.44
450.27
389.37
478.37
440.80
443.00
446.30
457.70
Azimuth
50
50
50
230
345
50
230
50
50
50
50
52
50
12
207
12
10
12
41
193
45
50
290
50
35
35
50
35
50
333
49
22
50
50
330
330
50
30
50
50
Dip
-70
-50
-50
-65
-50
-50
-57
-50
-50
-70
-70
-50
-50
-45
42
-70
-70
-86
-65
-50
-45
-60
-45
-65
-45
-70
-70
-70
-50
-45
-45
-45
-70
-67
-45
-45
-70
-70
-70
-70
Depth
278.00
221.00
215.00
170.00
101.40
110.00
161.00
164.00
165.50
209.00
191.00
176.00
146.00
65.00
52.00
88.10
93.00
104.00
206.00
110.00
140.00
261.50
146.00
50.00
125.00
137.00
168.50
152.00
128.00
154.30
193.00
130.00
113.00
176.00
257.00
263.00
94.00
232.00
169.00
282.00
Property
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Viking
Kramer
Kramer
Kramer
Kramer
Kramer
Kramer
Kramer
Kramer
Kramer
Kramer
Kramer
Kramer
Kramer
Kramer
Kramer
Kramer
Kramer
Kramer
Drillhole ID
11-VK-107
11-VK-108
11-VK-109
11-VK-110
11-VK-111
11-VK-112
11-VK-113
11-VK-114
11-VK-115
11-VK-116
11-VK-117
11-VK-118
11-VK-119
11-VK-120
11-VK-121
11-VK-122
11-VK-123
11-VK-124
11-VK-125
11-VK-126
11-VK-127
11-VK-128
KR-09-01
KR-10-02
KR-10-03
KR-10-04
KR-10-05
KR-10-06
KR-10-07
KR-10-08
KR-10-09
KR-10-10
KR-10-11
KR-10-12
KR-10-13
KR-10-14
KR-13-15
KR-13-16
KR-13-17
KR-13-18
UTM83 Easting
500620.00
500613.00
500598.00
500568.90
500624.20
500601.70
500571.70
500592.90
500587.00
500595.00
500680.00
500641.00
500567.00
500508.00
500529.00
500552.00
498575.00
498623.00
498715.00
499924.00
500422.00
500581.15
501287.19
501314.19
501280.19
501280.19
501331.20
501331.20
501112.18
501112.18
501130.19
501130.18
501265.19
501265.19
501347.19
501348.19
501668.23
501668.23
501653.22
501653.22
UTM83 Northing
5504520.00
5504614.00
5504659.00
5504696.20
5504681.50
5504725.40
5504752.50
5504768.60
5504449.00
5504314.00
5504252.00
5504257.00
5504433.00
5504630.00
5504783.00
5504739.00
5504058.00
5504037.00
5504093.00
5504580.00
5504262.00
5504731.23
5505274.60
5505312.59
5505300.59
5505300.59
5505299.59
5505299.59
5505087.60
5505087.60
5505087.60
5505061.59
5505313.59
5505313.59
5505324.59
5505325.59
5505924.59
5505924.59
5505839.58
5505839.58
62
Elevation
446.70
440.50
441.30
447.80
439.70
442.80
449.60
448.00
443.50
400.73
386.00
384.30
443.50
447.00
449.00
450.50
391.00
388.00
394.00
483.00
420.00
447.76
339.00
345.00
344.00
344.00
335.50
335.50
360.00
360.00
352.00
352.00
351.00
351.00
338.00
338.00
323.00
323.00
313.00
313.00
Azimuth
50
40
50
50
50
50
50
50
50
70
50
50
54
50
50
50
330
330
332
155
180
50
73
80
60
60
76
76
110
110
106
110
46
46
173
144
315
315
300
300
Dip
-78
-70
-70
-70
-70
-70
-70
-70
-70
-55
-50
-50
-70
-70
-70
-70
-50
-50
-50
-61
-50
-65
-45
-45
-45
-60
-45
-60
-45
-60
-45
-60
-45
-60
-45
-45
-45
-60
-45
-60
Depth
225.00
195.00
165.00
237.00
153.00
191.00
141.00
132.00
285.00
260.00
118.00
202.00
318.00
201.00
207.00
204.00
58.20
122.00
119.00
197.00
191.00
146.00
169.80
136.50
50.90
50.00
72.20
119.20
128.00
245.00
123.60
179.00
95.00
95.00
50.00
68.00
179.00
131.00
184.50
191.00
Property
Kramer
Kramer
Kramer
Kramer
Kramer
Kramer
Kramer
Kramer
Kramer
Kramer
Project Total
Viking Total
Kramer Total
10.1
Drillhole ID
KR-13-19
KR-13-20
KR-13-21
KR-13-22
KR-13-23
KR-13-24
KR-13-25
KR-13-26
KR-13-27
KR-13-28
160
132
28
UTM83 Easting
501603.22
501603.22
501533.21
501533.21
501385.20
501385.20
501415.20
501415.20
501423.20
501318.20
UTM83 Northing
5505819.59
5505819.59
5505799.59
5505799.59
5505411.59
5505411.59
5505415.59
5505415.59
5505434.59
5505439.59
Elevation
326.00
326.00
343.00
343.00
331.00
331.00
328.00
328.00
326.00
337.00
Azimuth
285
285
135
135
338
338
335
325
265
253
Dip
-45
-60
-45
-60
-45
-60
-45
-60
-45
-50
Depth
182.00
200.00
131.00
191.00
50.00
98.00
137.00
128.00
154.00
95.00
22,607.50
18,973.80
3,633.70
General
The current Mineral Resource Estimate is based on a drillhole database for the Viking Property containing
a total of 128 drillholes for a total of 18,620.6 m of drilling. These holes were drilled by Northern Abitibi
from 2008 to 2011 and include industry standard Quality Control and Quality Assurance (“QAQC”)
procedures described below. Each drill collar is marked by a wooden post with a metal tag and the location
of each hole has been professionally surveyed by differential GPS methods. The majority of holes contain
down-hole orientation surveys. All of the Northern Abitibi drilling is supported by full geochemical
analytical data and original assay certificates, archived sample pulps, and half of all the drill core samples
are stored in a shed on site for reference and verification purposes. From this database, a total of 109 holes
have been drilled into the Thor Deposit totaling 15,574 m of diamond drilling, and these have been used in
the current Mineral Resource Estimate. In addition to drillholes, 74 lines of surface channel samples cut
from trenches using a diamond saw have been treated as horizontal drillholes and also used in the resource
calculation.
Drilling program details are presented below. All drill information such as rock lithology and alteration,
sampling information, assay results, laboratory reports, collar survey data and down-hole survey data has
been assembled into digital format for modelling.
10.2
Methodology
Springdale Forest Resources Ltd. of Springdale, NL provided contract drilling services for the 2008 and
2009 drilling programs at Viking, completing holes 08VK-01 to 09VK-39. NQ size drill core (~47.6 mm
in diameter) was recovered in both instances using a track mounted Duralite 500 drill. Cabo Drilling
(Atlantic) Corp. of Springdale, NL provided subsequent drilling in 2009 and 2010, and completed holes
10-VK-30 through 10-VK-103. Cabo employed two skid mounted hydraulic drilling rigs and recovered NQ
size core in 2009 and HQ size core (63.5 mm in diameter) in 2010. Logan Drilling Ltd. of Stewiacke, Nova
63
Scotia provided drilling in 2011 and completed holes 11VK-104 to 128. Logan used a skid mounted
hydraulic drill and recovered NQ size drill core (~47.6 mm in diameter).
Northern Abitibi personnel and consultants supervised all on-site geological work under the supervision of
Dr. Shane Ebert, President of Northern Abitibi, and also carried out core logging, sampling, interpretive
and reporting functions. Field operations were coordinated from the Company’s Pollard’s Point exploration
base and drill core from Northern Abitibi programs has been placed in wooden boxes with metal
identification tags and stacked in a core storage shed on site at the Company’s core logging and sampling
facility. Collar locations and elevations for all holes were surveyed by independent commercial surveying
firm Yates and Woods Ltd. of Corner Brook, NL using differential geographic positioning system (DGPS)
methods coordinated to the Universal Transverse Mercator (UTM) grid, Northern Hemisphere, Zone 21,
and North American Datum 83 (NAD 83). Topographic relief at the Thor Trend is low to moderate, with
surveyed collar coordinates defining a total elevation range of range of 143.9 m between 334.5 m and 478.4
m ASL. For Resource estimation purposes a detailed digital terrain model developed from the LIDAR
survey dataset was used. The majority of holes completed by Northern Abitibi were tested for inclination
and azimuth variation using a Flexit electronic down-hole survey instrument and in most instances, an end
of hole measurement was made along with a mid-hole depth measurement in deeper holes.
All drill core recovered by Northern Abitibi during the 2008 through 2011 programs was systematically
photographed using a digital camera prior to completion of core logging and sampling. These photographs
form a permanent digital record of all core recovered to date from the project and have been archived by
Northern Abitibi.
10.3
Comments on Core Recovery
Core recovery for the majority of drilling was measured and entered on paper logging sheets during the
Northern Abitibi programs. Overall core recovery was excellent, typically averaging near 100 percent.
Localized zones of broken ground were encountered in drilling with recoveries dipping to less than 80%,
but these were not common. No substantive core recovery issues were encountered in any of the drilling
programs. Northern Abitibi did not record RQD values.
10.4
Viking Property Drilling
From 2008 to 2011, Northern Abitibi completed a total 18,620.6 m in 128 drillholes at the Viking Property
(Table 11).
10.4.1 2008 Drilling Program
In 2008, 10 diamond drillholes (08VK-01 to 10) totalling 575 metres of drilling were completed as an initial
test of the Thor Trend (Figure 6).
The drill program was successful in intersecting significant high-grade gold mineralization including 5.75
m grading 33.7 g/t Au in hole 08VK-01, 3.8 m grading 16.1 g/t Au in hole 08VK-02, 0.5 m grading 176 g/t
Au in hole 08VK-03 and 0.9 m grading 119.6 g/t Au in hole 08VK-05. The drill program also identified
64
larger zones of lower-grade mineralization surrounding the high-grade veins, such as 23 m grading 5.1 g/t
Au in hole 08VK-03 and 22 m grading 1.9 g/t Au in hole 08VK-04.
In 2009, Northern Abitibi completed a total of 3,612.6 m of diamond core drilling in 35 drillholes (09VK11 to 45) that tested the Thor Trend over 500 m of north-south strike length. The 2009 drilling program
continued to expand the known zone of gold mineralization along the Thor Trend and identify additional
high-grade shoots and broader low-grade halos.
During 2010, Northern Abitibi completed 9,734.8 m of diamond core drilling in 57 holes (10VK-46 to 103).
Select results from the 2010 drilling are summarized in table 9.6 below, a location map showing all holes
drilled into the Thor Trend is shown in Figure 20.
Drilling in 2010 has continued to expand and infill mineralization along the Thor Trend as well as identify
new zones on the property that contain potential to host additional zones of mineralization.
Drilling at the southern part of the Viking Trend (known as the Viking Pond area), indicates the altered
zone is up to 70 m wide and dips at a moderate angle to the southeast controlled in part by a major fault.
Surface work and drilling results show the zones contains highly anomalous Au, Ag, Zn, and Cu with
elevated Te-Bi-Mo-Se-Tl-W. The Viking Trend contains mesothermal style quartz and Fe-carbonate veins
similar to those at the Thor Trend; however, the zone contains distinct metal associations, structural
controls, and isotopic signatures (M. Minnett, pers. comm.), suggesting distinct sources/timing for
mineralization or perhaps a property scale metal zonation. All of the holes drilled into the zone intersected
highly anomalous gold over widths ranging from 47 to 108 m. Highlights include hole 102 which
intersected 11.5 m grading 0.4 g/t Au, hole 88 which intersected 27.7 m grading 0.3 g/t Au, and hole 93
which intersected 73.5 m grading 0.2 g/t Au. Significant drill intercepts from the Viking Trend are
summarized in Table 11. Drilling has defined an altered and weakly mineralized zone that is 50 to 70 m
wide, dips about 45 degrees to the southwest, and is very continuous to the depths drilled (about 200m
depth to date). To date only low-grade gold values have been intersected, however, only a small portion of
the Trend has been tested by drilling, and higher-grade zones have been identified on surface.
Most drillholes into the Viking Trend have intersected a ductile fault zone at the base of the zone, which
appears to form the lower boundary to the mineralized and altered zone. This fault is termed the Viking
Fault and is characterized by a highly strained mylonitic like zone locally containing boudinaged quartz
vein fragments and minor biotite schist. In addition to ductile faulting, several zones of brittle faulting occur
within the mineralized zone containing, chloritic-clay fault gouge and brecciated host rocks (largely augen
gneiss).
65
Figure 20: Thor Trend drillhole location map showing all drillholes to 2011
During 2011, Northern Abitibi completed 4,698.2 m of diamond drilling in 25 holes (11VK-104 to 128).
Drilling along the Thor Trend continues to infill and expand the mineralized zone, and several new highgrade shoots have been identified. Select results from the 2011 drill are shown in Table 11. The location of
2011 drillholes are shown in Figures 9.4 and 9.5.
66
Results from the Thor Trend continue to show the zone contains a large area with anomalous to low-grade
gold with localized high-grade shoots, many of which remain poorly defined. Several holes have been
drilled outside the Thor Trend to explore additional areas of alteration and mineralization on the property.
Holes 124, 125, and 126 tested the northern end of the Viking Trend, located 2 km west of the Thor Trend.
All three holes intersected anomalous gold and silver mineralization located within a corridor of strong
alteration and quartz veining that has been traced for 1.3 km in length and remains open at both ends.
Results from hole 124 includes 8.1 metres grading 0.45 g/t Au and 2 g/t silver from 3.2 to 11.3 m depth,
and 1.5 m grading 2.1 g/t Au from 17 to 18.5 m depth. Hole 125 returned 25.2 m grading 0.3 g/t Au and 2
g/t silver from 8.3 to 33.5 m depth, along with a 1.5 metre intercept grading 0.5 g/t Au and 2 g/t silver from
60 to 61.5 m depth. Hole 126 encountered anomalous gold from 9.0 to 60.5 m depth with the best interval
returning 0.5 g/t Au and 4 g/t silver over 1.5 m.
Hole 127 tested an induced polarization chargeability anomaly in a mostly covered zone in the central part
of the Viking Property. The recently completed geophysical survey has defined this chargeability anomaly
over a strike length exceeding 1000 m, with widths up to 100 m, and to date it has only been tested with
one drillhole. Hole 127 intersected altered pyritic intrusive rocks with anomalous gold mineralization from
39.7 to 162.1 m depth, including 11.8 m grading 0.2 g/t Au from 43.2 to 55 m depth and 47.5 m grading
0.2 g/t Au from 85 to 132.5 m depth. The highest interval in the hole returned 0.9 g/t Au over 0.85 m. This
is the first drill test of this large anomaly, and initial results are encouraging, demonstrating the zone
contains significant gold anomalies and that further exploration of the zone is warranted.
Table 11: Significant Drill Intercepts from the Viking Trend
Drill Hole
08VK-01
including
including
and
08VK-02
and
including
including
and
and
and
08VK-03
including
including
and
08VK-04
including
including
and
including
08VK-05
and
From
(m)
3.00
3.00
3.60
6.70
1.80
6.00
7.00
9.30
13.60
33.40
42.20
1.30
15.00
17.10
27.50
2.50
5.00
23.00
43.20
45.00
9.00
25.80
To (m)
Interval (m)
Au (g/t)
8.75
6.70
4.10
40.00
6.00
9.80
7.40
9.80
18.80
34.00
43.20
24.30
15.50
17.40
28.50
24.50
5.40
24.00
54.00
46.00
25.80
26.70
5.75
3.70
0.50
33.30
4.20
3.80
0.40
0.50
5.20
0.60
1.00
23.00
0.50
0.30
1.00
22.00
0.40
1.00
10.80
1 .0
16.80
0.90
33.74
50.05
218.79
0.73
2.88
16.12
35.84
41.66
0.93
7.02
37.62
5.12
176.20
23.41
2.12
1.91
13.30
9.61
2.43
7.85
1.54
119.65
67
Drill Hole
08VK-06
08VK-08
including
and
08VK-09
and
08VK-10
and
including
including
09VK-11
including
09VK-12
including
09VK-13
including
09VK-14
including
including
including
including
09VK-16
including
09VK-17
including
09VK-18
including
09VK-19
including
including
09VK-20
including
including
including
09VK-20
09VK-20
09VK-21
including
including
09VK-22
including
including
09VK-23
including
including
09VK-24
From
(m)
39.40
7.00
11.00
33.20
8.50
47.90
10.00
29.50
30.50
32.50
2.10
5.70
0.00
8.20
5.90
123.00
20.60
48.30
49.30
57.90
73.50
31.50
37.50
20.70
47.20
28.50
38.40
2.80
12.20
26.30
5.60
6.80
14.50
33.90
71.50
71.90
4.70
18.90
43.00
8.00
10.80
18.50
11.00
19.70
24.00
13.50
To (m)
Interval (m)
Au (g/t)
40.00
21.00
12.60
34.80
9.50
49.20
18.00
33.50
31.50
36.50
57.50
6.40
61.50
8.60
129.40
123.60
78.00
52.60
50.30
58.40
74.50
49.00
38.00
50.10
47.60
38.80
38.80
44.20
30.40
27.50
35.60
7.00
19.00
34.60
71.90
72.30
45.20
19.40
44.00
30.20
11.00
19.00
38.00
24.50
24.50
14.50
0.60
14.00
1.60
1.60
1.00
1.30
10.00
4.00
1.00
1.00
55.40
0.70
61.50
0.40
113.00
0.60
57.40
4.30
1.00
0.50
1.00
17.50
0.50
29.40
0.40
10.30
0.40
41.40
18.20
1.20
30.00
0.20
4.50
0.70
0.40
0.40
40.50
0.50
1.00
22.20
0.20
0.50
27.00
4.80
0.50
1.00
7.58
1.73
9.84
16.07
2.62
6.07
0.96
3.23
6.63
5.05
0.40
8.10
0.20
4.70
0.20
9.30
2.80
20.60
45.50
36.20
12.20
2.70
36.00
1.00
19.80
1.00
5.00
2.00
4.10
37.50
1.70
34.70
5.80
11.20
7.50
14.70
1.80
14.30
6.20
1.70
37.20
7.30
7.90
41.70
135.90
1.10
68
Drill Hole
09VK-24
09VK-25
09VK-26
including
09VK-26
09VK-27
including
including
including
including
09VK-28
including
including
09VK-29
including
including
09VK-30
including
including
09VK-31
including
09VK-32
including
including
09VK-34
09VK-35
09VK-36
09VK-37
including
09VK-38
including
09VK-38
09VK-39
including
including
09VK-40
09VK-41
including
including
09VK-42
09VK-43
including
including
09VK-45
including
10VK-46
From
(m)
43.70
6.50
46.00
52.40
75.00
1.30
7.00
32.80
36.50
49.00
1.10
10.50
38.20
10.50
63.00
66.40
15.00
31.50
37.10
43.90
45.80
12.50
13.50
28.10
60.00
65.40
95.00
89.00
113.00
74.00
86.00
163.00
52.50
70.40
70.40
20.10
21.10
34.80
40.30
46.00
53.70
79.00
79.00
99.80
108.50
9.60
To (m)
Interval (m)
Au (g/t)
44.90
8.00
65.50
65.50
77.00
49.30
10.00
39.50
37.50
49.30
60.00
11.60
45.30
67.80
67.80
67.80
38.80
37.90
37.90
49.00
46.90
52.20
31.10
28.60
60.65
66.00
96.50
123.50
123.50
95.00
87.50
169.00
98.00
98.00
71.50
31.20
41.00
35.80
41.00
66.60
85.00
84.00
80.00
116.50
109.50
48.50
1.20
1.50
19.50
13.10
2.00
48.00
3.00
6.70
1.00
0.30
58.90
1.10
7.10
57.30
4.80
1.40
23.80
6.40
0.80
5.10
1.10
39.70
17.60
0.50
0.65
0.60
1.50
34.50
10.50
21.00
1.50
6.00
45.50
27.60
1.10
11.10
19.90
1.00
0.70
20.60
31.30
5.00
1.00
16.70
1.00
38.90
1.00
0.40
0.80
1.10
1.20
0.60
2.50
1.70
5.30
12.40
0.50
5.70
1.40
0.30
1.90
2.50
2.50
7.20
32.70
17.40
24.10
1.60
2.80
45.90
6.70
27.70
3.00
0.80
1.40
1.30
5.90
0.60
1.00
1.50
23.40
0.80
1.60
14.50
21.90
0.50
1.00
2.80
7.00
0.50
1.90
1.00
69
Drill Hole
including
including
including
10VK-47
10VK-47
10VK-47
10VK-47
10VK-48
10VK-48
10VK-48
10VK-49
including
including
10VK-50
10VK-51
including
including
including
including
10VK-52
including
and
and
10VK-53
10VK-53
10VK-53
10VK-54
10VK-54
including
10VK-54
10VK-55
10VK-56
10VK-57
10VK-57
10VK-58
10VK-60
including
including
including
including
10VK-61
10VK-62
including
10VK-63
including
including
From
(m)
9.60
15.00
18.50
102.10
133.40
151.50
199.00
41.80
47.80
76.50
135.80
135.80
146.60
10.00
66.50
104.50
123.50
123.50
134.60
32.00
70.00
127.10
187.00
90.30
123.40
186.90
49.35
78.60
90.00
114.30
39.80
107.00
91.80
152.00
141.40
4.00
21.50
24.50
27.00
27.50
156.90
28.40
30.00
33.20
33.20
33.20
To (m)
Interval (m)
Au (g/t)
22.35
15.45
18.90
121.60
134.10
165.00
200.00
42.70
55.40
76.90
161.20
136.80
147.20
16.00
147.40
105.00
147.40
135.60
135.60
94.30
78.50
134.20
187.50
108.40
149.00
192.10
52.00
93.00
91.50
118.00
53.50
109.00
92.80
180.30
141.90
36.00
30.00
25.50
27.50
28.50
158.00
33.50
31.00
41.00
36.00
34.00
12.75
0.45
0.40
19.50
0.70
13.50
1.00
0.90
7.60
0.40
25.40
1.00
0.60
6.00
80.90
0.50
23.90
12.10
1.00
62.30
8.50
7.10
0.50
18.10
25.60
5.20
2.65
14.40
1.50
3.70
13.70
2.00
1.00
28.30
0.50
32.00
8.50
1.00
0.50
1.00
1.10
5.10
1.00
7.80
2.80
0.80
2.20
36.80
7.40
0.70
3.80
0.50
0.90
6.00
0.70
7.60
0.60
5.50
3.60
1.30
0.80
4.70
1.50
2.60
21.10
0.80
2.40
0.90
4.00
0.40
0.30
1.10
1.70
1.20
7.10
0.90
0.30
1.30
2.30
0.30
124.80
1.80
6.40
11.10
12.90
23.00
6.80
2.30
5.40
5.00
13.30
21.50
70
Drill Hole
10VK-64
10VK-65
10VK-68
10VK-68
10VK-68
including
10VK-71
including
including
including
10VK-73
including
10VK-74
including
10VK-77
10VK-79
including
10VK-81
10VK-82
10VK-83
including
10VK-85
10VK-85
10VK-86
including
including
10VK-87
10VK-91A
10VK-91A
including
including
10VK-94
10VK-94
10VK-96
Hole 100
including
10VK-100
10VK-101
10VK-101
10VK-101
11VK-104
11VK-104
11VK-105
11VK-105
11VK-105
11VK-106
From
(m)
28.10
85.30
99.50
140.50
176.70
176.70
15.10
32.00
45.50
51.10
20.00
22.20
17.00
32.20
64.50
63.50
65.50
45.50
36.20
20.40
36.70
36.00
90.50
94.80
134.60
174.50
40.00
81.00
100.40
100.40
109.30
28.90
81.10
79.50
36.50
42.50
73.50
101.20
115.00
150.00
3.00
51.40
66.90
117.50
184.60
69.40
To (m)
Interval (m)
Au (g/t)
28.50
86.00
101.00
154.40
178.90
177.20
111.50
37.10
70.60
51.80
34.00
32.80
35.80
33.30
71.60
69.80
65.90
52.00
43.10
37.40
37.40
51.50
91.00
175.70
135.00
175.70
54.00
91.50
110.00
101.00
110.00
29.40
84.00
89.50
74.50
57.50
74.50
101.90
131.00
150.50
3.20
51.90
67.20
149.50
185.50
72.40
0.40
0.70
1.50
13.90
2.20
0.50
96.40
5.10
25.10
0.70
14.00
10.60
18.80
1.10
7.10
6.30
0.40
6.50
6.90
17.00
0.70
13.10
0.50
65.80
0.40
1.20
14.00
10.50
9.60
0.60
0.70
0.50
2.90
10.00
38.00
15.00
1.00
0.70
16.00
0.50
0.20
0.50
0.30
32.00
0.90
3.00
3.60
2.40
2.70
0.40
4.10
9.10
0.70
2.20
1.10
8.50
1.40
1.80
1.00
6.20
0.50
0.70
6.50
0.50
0.70
1.10
8.90
0.90
96.50
0.70
10.20
5.40
0.70
0.40
1.00
6.20
5.40
3.10
0.50
0.70
0.90
1.30
7.00
5.30
0.50
12.50
1.70
3.80
2.00
0.50
1.70
0.70
71
Drill Hole
11VK-106
including
11VK-106
11VK-107
11VK-108
including
11VK-109
11VK-109
including
11VK-110
11VK-110
11VK-111
11VK-111
including
11VK-112
including
11VK-113
11VK-113
11VK-114
including
including
11VK-115
11VK-115
11VK-116
11VK-116
11VK-116
11VK-118
11VK-119
11VK-120
11VK-121
including
including
including
11VK-122
including
11VK-123
including
11VK-127
11VK-127
From
(m)
92.50
106.40
116.50
199.90
143.50
164.90
91.50
149.00
149.00
71.60
134.00
120.00
135.10
138.00
24.10
46.00
59.50
159.80
92.60
92.60
92.60
50.50
67.30
109.00
180.00
200.10
14.60
90.20
162.10
99.00
141.70
147.80
164.00
143.00
149.50
147.50
147.50
43.20
85.00
To (m)
Interval (m)
Au (g/t)
110.20
106.80
116.80
201.70
170.40
165.20
112.50
159.20
150.30
82.00
142.50
126.00
152.10
139.50
49.50
47.10
60.00
177.40
136.90
114.00
93.60
52.20
68.60
119.50
190.10
201.10
40.50
101.10
214.20
164.30
142.00
148.10
164.30
152.30
150.60
165.50
150.50
55.00
132.50
17.70
0.40
0.30
1.80
26.90
0.30
21.00
10.20
1.30
10.40
8.50
6.00
17.00
1.50
25.40
1.10
0.50
17.60
44.30
21.40
1.00
1.70
1.30
10.50
10.10
1.00
25.90
10.90
52.10
65.30
0.30
0.30
0.30
9.30
1.10
18.00
3.00
11.80
47.50
0.30
6.00
29.30
2.40
0.80
26.40
0.70
2.40
10.40
0.70
0.70
0.80
1.00
3.00
0.70
6.90
2.80
0.40
0.60
0.90
4.10
4.30
2.40
0.40
0.60
1.80
0.60
0.50
0.50
0.50
20.20
10.20
10.90
0.80
3.20
0.50
1.30
0.20
0.20
72
10.5
Kramer Property Drilling
From 2010 to 2013, Spruce Ridge completed a total 3,633.70 m in 28 drillholes at the Kramer Property
(Table 12).
During 2010 Spruce Ridge completed 14 diamond drillholes (KR-10-01 to 14) totalling 1,582.2 metres
(Froude, 2011).
Diamond drillhole KR-09-1 intersected a narrow, base metal bearing quartz vein at a depth of 6.20 m that
returned an assay of 3.69 g/t Au, and is probably the down dip extension of the Kramer vein sampled at
surface that returned up to 49.78 g/t Au from a well-mineralized grab sample. Diamond drillhole KR-10-2,
intersected 42.5 m of altered and quartz vein mineralized augen gneiss that averaged nearly 90 ppb Au
including a 3.0 m section that returned 0.70 g/t Au including 1.543 g/t Au over 1.0 m.
Holes KR-10-7 and KR-10-8 tested the Whiskey Jack Prospect. Mineralization intersected in these holes
supported the surface trenching results including locally higher-grade, sulfide rich quartz veining with
assays of 1.12 g/t over 20.05 m and 1.50 over 14.4 m, respectively (Table 12).
Drillholes KR-9 and 10, drilled from the same setup, 25 metres to the southwest of KR-10-7 and 8,
intersected much thinner zones of mineralization, possibly due to a northeast plunge to the mineralized
trend. This is suggested by the outcrop pattern mapped in the Whiskey Jack trench which shows the finer
grained bodies irregular distribution (not continuous across the stripped area), suggesting that holes KR10-9 and 10 most likely undercut the zone.
Drillholes KR-10-11 and 12 (drilled from the same setup), were designed to test the northern strike
extension of the high-grade Kramer vein as well as some newly exposed fine grained granite that locally
carried significant gold from channel sampling. Results were mixed suggesting a very complex and perhaps
folded nature to the mineralized zone.
Drillholes KR-10-13 and 14 successfully tested the quartzite zone located immediately east of the Kramer
Zone. The best result was from KR-10-14, which returned 1.04 g/t Au over 11.7 m (Table 12).
Mineralization (pyritic replacement of magnetite) and alteration in the quartzite is strongest at this locality,
possibly influenced by an inferred east west fault immediately south of the Quartzite trench.
During 2013, Spruce Ridge completed 14 diamond drillholes (KR-13-15 to 28) totalling 2,051.8 m at the
Kramer Prospect (Froude, 2014). The drilling program was designed to test new zones of gold
mineralization exposed by surface trenching in 2012, mainly to the northeast of the original Kramer
showing discovered in 2009. Locally strongly anomalous gold values (e.g. 25.4 g/t Au over 0.5 m; KR-1317) were reported in each holes and thereby successfully extending the mineralized zone an additional 1.5
kilometres along strike (Table 12) from the original Whiskey Jack and Kramer occurrences.
Table 12: Significant drill intercepts from the Kramer Trend
73
Drill Hole
KR-09-1
including
KR-10-2
including
KR-10-3
KR-10-5
KR-10-7
and
and
and
including
and
KR-10-8
and
including
including
KR-10-9
KR-10-10
and
KR-10-11
and
and
KR-10-12
KR-10-14
including
KR-13-15
KR-13-16
KR-13-17
And
And
KR-13-18
And
And
KR-13-19
KR-13-20
From (m)
6.20
6.20
39.50
42.50
16.60
41.00
10.10
17.00
32.80
53.50
60.05
92.80
52.00
66.85
66.85
75.50
72.00
19.35
100.70
15.70
23.65
44.15
2.40
27.75
31.40
37.75
27.50
19.70
43.80
57.05
27.10
37.40
57.50
69.25
75.25
To (m)
7.40
6.40
43.50
43.50
23.20
42.90
14.40
19.10
43.80
73.55
63.30
98.65
53.80
90.70
81.25
80.65
74.20
19.60
103.55
16.20
24.00
44.50
5.90
39.45
36.30
38.70
58.50
20.20
46.80
60.05
28.20
39.55
57.90
69.75
75.75
74
Interval (m)
1.20
0.20
4.00
1.00
6.60
1.90
4.40
2.10
11.00
20.05
3.25
5.65
1.80
23.85
14.40
5.15
2.20
0.25
2.85
0.50
0.35
0.35
3.50
11.70
4.90
0.35
1.00
0.50
3.00
3.00
1.10
2.15
0.40
0.50
0.50
Au (g/t)
0.64
3.69
0.53
1.53
0.17
0.89
0.99
0.68
0.51
1.12
5.42
0.61
0.71
0.99
1.50
3.78
0.65
2.15
1.04
1.17
0.47
2.33
0.64
1.04
2.10
0.52
0.53
25.44
0.47
0.84
0.51
0.42
0.71
0.68
1.40
11.0 Sampling Preparation and Security
11.1
Drilling and Trenching Programs
All of the drill core was collected directly from the drill by Northern Abitibi personnel, brought to a core
processing facility on the Viking site, photographed, logged, and sampled. Samples for assay are delivered
by Northern Abitibi personnel directly to the assay laboratory in Springdale, NL. All drill core assay
samples were marked on the drill core and on the wooden core boxes by experienced Northern Abitibi
geological staff or geological consultants. Numbered sample tags for each assay interval were stapled into
the core box and a second tag was placed in a plastic bag with the sample sent for assay. Drill core was cut
in half by technical support staff using a diamond saw with half of the core placed in clean numbered plastic
bags for assay, and half remaining in the core box and stored on site. Duplicate samples, blanks, and
certified standards are included with the samples sent for assay and checked to ensure data quality and
integrity. Assay samples were tied shut and placed in larger rice bags and a numbered security strap was
attached to each bag. For surface channel samples, Northern Abitibi geological staff or geological
consultants marked sample lines and sample intervals on exposed bedrock in trenches with spray paint.
Technical support staff cut out the samples from the bedrock using a hand held diamond saw and placed
them in numbered plastic bags. Metal tags with sample numbers were nailed to the outcrop along each
sample line. Core and trench sampling was closely monitored by experienced geological staff.
Northern Abitibi geological staff or geological consultants systematically recorded recovery, lithology,
alteration and structural observations, and sample intervals from each core hole. This information is
subsequently entered into Excel spreadsheets and then undergoes various checks to ensure data accuracy
and to correct any data entry errors.
Drill core sample intervals were laid out by geological staff based on visually determined mineralized zone
limits or lithologic boundaries, and a 0.10 m minimum sample length parameter was applied along with a
maximum sample length parameter of 4.0 m. The majority of sampling was carried out at 1.0 m to 1.5 m
lengths. Continuous down-hole sampling of core across weakly mineralized zones was typically carried out
to document low-grade values present in the alteration envelope.
11.2
Sample Preparation and Analyses
Bagged core and channel samples were transported to Springdale Newfoundland, roughly 1.5 hours’ drive
from the exploration site, and the majority were delivered directly to Eastern Analytical Limited the primary
assay lab for the project. Over the duration of the project, some of the assay samples were sent to Accurassay
Labs in Gambo, Newfoundland.
Standard rock and core sample preparation protocol were generally applied, which includes drying, jaw
crushing to 75% minus 10 mesh, riffle splitting of a 250 g sub-sample and then pulverizing to produce
material at 98% minus 150 mesh. For several samples, a total pulp preparation was used. Gold was analyzed
using Fire Assay pre-concentration and Atomic Absorption finish on a 1-assay-tonne prepared split. A
second analytical split of pulverised material was analyzed for a multi-element suite using the ICP-30
analytical protocol that provides analysis of 30 separate elements using Inductively Coupled Plasma –
75
Emission Spectrometry (ICP-ES) methods after aqua regia digestion. Eastern Analytical Limited is a
commercial laboratory that provides a range of analytical services to the exploration and mining industries.
It is not ISO certified but maintains industry standard internal quality control procedures that include
independent third party check sampling protocols. Accurassay Labs is ISO certified.
Most core and channel samples returning a gold value of 5 g/t or more were re-analysed using a screen
metallics processing protocol to better address potential for presence of coarse Au in such samples. The
screen metallic process used by Eastern includes pulverization of the entire sample to minus 200 mesh
followed by screening to create a plus 150 mesh fraction that is separately analysed. Analysis of a minus
fraction split is also carried out and the two analyses are weight averaged to create a head grade for the
sample.
11.3
Security for All Northern Abitibi Programs
Northern Abitibi staff and consultants were responsible for general security at drill sites, for collection of
core from the drilling sites and secure delivery of core to the logging facility. All subsequent core handling,
sampling and sample shipment activities were carried out in the logging facility under secure conditions
under direct supervision of geological staff. Cut and bagged core and channel samples were put into rice
bags and each rice bag was secured with a numbered tamper proof security strap. The samples were
removed from the field facility by Northern Abitibi personnel and transported directly to Eastern Analytical
laboratory in Springdale, NL or to a locked sample-receiving container at the Cabo drilling company site
in Springdale for shipment to Accurassay in Gambo by a commercial transportation firm. Both laboratories
were instructed to advise Northern Abitibi if any bags arrived at the respective facilities with broken security
seals or other evidence of intrusion. Northern Abitibi maintained a digital record of all sample shipments
information, including constituent samples in every shipment, relevant shipment dates and laboratory
receipt dates.
The sample preparation, analyses and security of Northern Abitibi’s Viking drill programs are consistent
with industry standards and acceptable for support of the current Mineral Resource Estimate.
76
12.0 Data Verification
12.1
Review and Validation of Project Data Sets
Anaconda has compiled all of the digital data bases used in the current resource calculation. Field data and
sample intervals were originally entered into Excel spreadsheets and manually checked against source
documents for errors. Original assay files received from the lab are merged into the sample database and
systematically checked to ensure all samples numbers, intervals, and descriptions are correct. All of the
digital databases have been constructed, reviewed, and checked by Author Ebert. All drillhole logs, assay
certificates, and historic documents have been made available to Author Giroux who conducted the current
The validated drillhole and trenching databases from the 2007 to 2011 programs at Viking are considered
to be accurate and acceptable for use in this Mineral Resource Estimate.
12.2
Site Visit by the Authors
Author Ebert has been involved in all aspects of the Viking exploration programs carried out by Northern
Abitibi and is familiar with all aspects of the project geology, drilling, trenching, and sampling programs
carried out between 2007 and 2011. Author Ebert has spent several months in the field at the Viking Project
over the course of the Northern Abitibi exploration programs.
Author Giroux has not visited the property.
As part of an independent data verification Mr. Copeland completed a site visit to the Viking Project most
recently from August 8th to 15th, 2016. As part of the site visit Mr. Copeland reviewed diamond drill core
from the Thor and Kramer prospects. Independent check samples were taken of the drill core. A total of 10
samples were collected from two representative drillholes (09VK-20 and 10VK-46) where the mineralized
zones form part of the current Mineral Resource. Check assays reasonably reproduce the results of previous
sampling as shown in Figure 21. A review of sample tags within drill core boxes matches sample intervals
within the database accurately.
Mr. Copeland reviewed the current drill database against scanned logs, original assay certificates from
Eastern Analytical and Accurassay from Northern Abitibi archive files and finds that the drillhole logging
sheets and assay certificates match the database accurately and the data collected is of industry standard
quality.
Mr. Copeland also completed a review of Northern Abitibi QA/QC programs form the period 2007 to 2011
and finds that the QA/QC program completed by Northern Abitibi meets or exceeds industry standard
practice.
Downhole survey files were reviewed for extreme changes in the dip or azimuth.
77
All collar coordinates were checked against the topographic surface provided by Anaconda and several
collar locations for the Thor and Kramer Prospects were located using a hand held GPS and match the
drillhole locations in the database.
Based on the review of previous procedures and practices and the results of the data verification, Mr.
Copeland has very reason to believe that the drill data is of industry standard quality and suitable for use in
the estimation of Mineral Resources.
Figure 21: Plot of original versus check assays – drillholes 09VK-20 and 10VK-46
12.3
Quality Control and Quality Assurance (QA/QC)
12.3.1 Introduction
Drill core sampling carried out by Northern Abitibi during the 2008 through 2011 programs on the Viking
Property were subject to a QAQC program administered by the company. This included submission of blind
blank samples, duplicate split samples of quarter core, certified analytical standards and analysis of check
samples at a third party commercial laboratory. Additionally, internal laboratory reporting of quality control
and assurance sampling was monitored by Northern Abitibi on an on-going basis during the course of the
project. Details of the various program components are discussed below under separate headings. Portions
of the underlying discussion are taken directly from Cullen and Harrington (2011) with little modification.
12.3.2 Certified Reference Material Program
78
Northern Abitibi used four certified reference standards during the course of the 2008 through 2011
exploration programs, these being MA-3A obtained from CANMET and HGS2, AUQ2, and AUQ1
obtained from Accurassay Laboratories Ltd.. Details for all three certified standards used appear in Table
13.
Table 13: Certified standards used during the Viking exploration programs
Reference
Material
MA-3A
HGS2
AUQ2
AUQ1
Certified Mean Au Value
8.56 g/t ± 0.09 g/t
3792 ppb ± 312 ppb
1431 ppb ± 94.04 ppb
1330 ppb ± 114.8 ppb
Project control limits (Mean
+/- 2 standard deviations)
8.56 g/t ± 0.42 g/t
3792 ppb ± 624 ppb
1431 ppb ± 188 ppb
1330 ppb ± 230 ppb
Each certified standard sample consisted of a pre-packaged, prepared sample pulp weighing approximately
50 grams that was systematically inserted into the laboratory sample shipment sequence by Northern Abitibi
staff. Records of certified standard insertion were maintained as part of the core sampling and logging
protocols and ensured that at least one standard was submitted with each laboratory shipment. Range limits
for review of certified standard results were established at the certified mean ± 2 standard deviations levels
reported for inter-lab results obtained by the source laboratories.
The majority of certified standards from the Viking database fall within the accepted control limits of 2
standard deviations from the certified mean value. During the 2010 drilling program several results for
certified reference material AUQ2 fall below the accepted limits indicating some under reporting of gold
values might have occurred. Overall, the combined results for the certified standards carried out by Northern
Abitibi and the laboratories are sufficiently consistent to support the use of the assay data in the current
12.3.3 Blank Sample Programs
Blank samples of comparable weight to normal half core samples were systematically inserted into the
laboratory sample stream by Northern Abitibi staff during the 2008-2011 exploration programs, with
approximately 1 blank per 20 samples submitted. Blank samples used by Northern Abitibi consisted of nonmineralized granitic intrusive rock from the Gull Lake Granite and were collected from a talus slide on the
side of highway 420 near the start of the Viking access road.
The majority of blank samples return gold values less than 5 ppb (below detection), a few samples in
mineralized zones show weak gold values, with an overall average of less than 15 ppb. Only 4 blank samples
show evidence of cross contamination during sample preparation with a maximum value of 375 ppb Au
obtained from one blank. These anomalous blank samples typically follow samples with very high gold
grade, and the labs were made aware of the concerns.
No significant and systematic cross-contamination effect is interpreted to be present in the Au data set.
79
12.3.4 Quarter Core Duplicate Split Program
Northern Abitibi carried out a program of quarter core sampling to check on variation of results between
half core sample components. Roughly one quarter core duplication sample was taken in every 20 samples
sent for assay. In addition, each laboratory also ran routine duplicate analyses on pulps as part of their
internal quality control procedures.
The samples generally show reasonable correlation in lower-grade samples. High-grade samples, however,
can show considerable variability indicating a strong nugget effect as a result of coarse heterogeneous gold
distribution in the high-grade veins.
12.3.5 Check Sample Programs
During the course of the Viking exploration programs, Northern Abitibi periodically submitted pulp
samples previously analysed by Eastern Analytical to Accurassay as an independent check on gold analyses.
Accurassay is an ISO accredited commercial laboratory. Overall, the check assays compare well with the
original results and are interpreted to show acceptable confirmation of Northern Abitibi dataset
mineralization levels. In some of the higher-grade samples, however, the check samples show higher
degrees of variation. This variation is attributed to the strong nugget effect seen within the high-grade veins.
The majority of samples in the database are not strongly influenced by this nugget effect.
80
13.0 Mineral Processing and Metallurgical Testing
To date only preliminary metallurgical test work has been done on the Thor Trend mineralization. In 2010,
preliminary metallurgical testing was conducted on a single composite sample of representative drill core
from the Thor Trend by Met-Solve Laboratories Inc. of Burnaby, British Columbia. The objective of the
test work was to obtain a better understanding of the metallurgical characteristics of the mineralization at
Viking and provide early identification of potential metallurgical complexities. The program included
screen analysis to determine average free gold particle size, preliminary grind size versus recovery studies,
and determination of gravity recoverable gold percentage and gold recovery by bottle roll cyanide leaching.
Results of the metallurgical testing showed that gold mineralization at the Thor Trend is not refractory and
can be readily extracted by gravity or cyanide recovery methods. No significant metallurgical concerns
were identified.
During the testing gold recovery of 97% was achieved by cyanide leaching of a 59-micron grind size
product. Gold recovery of 95% was obtained with a combination of gravity separation and cyanide leaching
at a 59-micron grind size. Gold recovery of 86% was obtained with a combination of gravity separation and
cyanide leaching at a coarser grind of 258 microns. Preliminary tests showed that 70% of the gold is
recoverable by gravity concentration methods at a 97-micron grind size, and higher gravity recoveries might
be possible through process optimization (Ebert and Giroux, 2011).
Follow-up preliminary metallurgical testing by Anaconda in late 2015 indicates that mineralization from
the Thor Deposit of the Viking Project could be processed at the Pine Cove Mill using current flotation and
leach circuit configuration. The results of the study are based on a homogenized sample collected from two
diamond drillholes. Bench scale test work, conducted by NB Research and Productivity Council (“RPC”),
primarily focused on flotation, cyanide leaching and grinding to evaluate the response of the Thor Deposit
material to the current plant flow sheet for the Pine Cove Mill.
In a flotation test, using a grind of (80% passing) 150 µm, currently used for Pine Cove ore, the Thor
Deposit sample attained 96.0% Au recovery in 4.4% of the mass at a grade of 35.12 g/t Au in the rougher
stage. In a bottle roll cyanidation test the current Pine Cove Mill regrind size of (80% passing) 20 µm
obtained 94.1% Au extraction without requiring accelerating reagents and consumed 1.1 kg/t NaCN
compared to 3.6 kg/t for Pine Cove ore. A Bond Ball mill grindability test was performed utilizing a limiting
screen size of 150 µm and indicated that the sample has a Bond Ball Work Index (“BWI”) value of 18.5
kWh/t.
The sample for the metallurgical test work on the Thor Deposit was collected by Anaconda staff from
diamond drillholes VK09-20 and VK10-46, located at the northern portion of the Deposit and sent to RPC
in Fredericton, New Brunswick. The 59.8 kg sample was homogenized and analyzed by ICP-OES, whole
rock analysis and Au fire assay and was found to have a head grade of 1.86 g/t Au, 1.4 g/t Ag, 0.003% Cu
and 2.1% Fe, and found to contain 67.26% SiO2.
81
14.0 Mineral Resource Estimate
At the request of Anaconda Mining Inc., Giroux Consultants Ltd. was retained to produce an updated
Mineral Resource Estimate for the Viking Project, in Newfoundland. The effective date for this Resource
is August 29, 2016. The updated resource was completed in order to re-assess the deposit given current
gold market conditions. No additional drilling or channel sampling has been completed since the 2011
Mineral Resource Estimate of Ebert and Giroux (2011). G.H. Giroux is the qualified person responsible for
the Mineral Resource Estimate. Mr. Giroux is a qualified person by virtue of education, experience and
membership in a professional association. He is independent of both the issuer and the vendor applying all
of the tests in section 1.5 of National Instrument 43-101. Mr. Giroux has not visited the property.
14.1
Data Analysis
The supplied database for the Viking Project consisted of 128 drillholes, 218 down-hole surveys and 10,522
assays for gold. Of these holes, 109 intersected the Thor Trend mineralized zone totalling 15,574 m of
diamond drilling (see Appendix 1 for a listing of all drillholes with the holes intersecting the Thor Trend
highlighted). Figure 22 shows a plan view of the property and outlines the Thor Trend, which is the subject
of this Mineral Resource Estimate. In addition to the drillholes a total of 74 channel samples were cut across
the mineralized Thor zone using a diamond saw. These channels contained a total of 385 gold assays and
were treated as horizontal drillholes in the database. The trenches containing the channel samples are shown
in blue on Figure 22.
A total of 42 gaps in the from-to record were found and values for gold of 1 ppb were inserted. Gold assays
reported as <5 ppb were set to 3 ppb in 484 samples. Gold assays reported as blank were set to 1 ppb in 476
samples. All gold assays were then converted to ppm or grams / metric tonne (g/t). Collar locations were
provided in NAD 83 format.
Mr. Ebert provided a guide to produce a 3D geologic solid by outlining drillhole intervals as:
•
Unmineralized and weak alteration
•
Low-grade zone with moderate to strong alteration
•
High-grade zone with quartz veining, brecciation and/or stockwork
This outline was used along with gold grades to produce a set of 3D mineralized solids for constraining the
Mineral Resource Estimate. The solids were built using Gemcom software. The Thor Trend mineralized
solids are shown in Figure 23 and Figure 24.
82
Figure 22: Plan view showing Thor Trend (from Northern Abitibi Web Site)
83
Figure 23: Isometric view looking north showing the mineralized Thor solids
Figure 24: Isometric view looking NW showing the Thor mineralized solids, drillholes and surface topography
84
Individual assays were “back tagged” as inside or outside the mineralized solids. Table 14 shows the
statistics for gold assays inside and outside the Thor solids.
Table 14: Gold assay statistics inside and outside the Thor Mineralized Solids
Inside Thor Solids
Au (g/t)
Number of Assays
3,373
Mean Au Grade
1.58
Standard Deviation
9.43
Minimum Value
0.001
Maximum Value
307.99
Coefficient of Variation 5.97
Outside Thor Solids
Au (g/t)
7,569
0.10
0.62
0.001
20.24
5.91
Some isolated high gold assays sit outside the mineralized solids and could not be joined to other intervals
on other sections. The distributions of gold within and outside the mineralized solids were examined using
lognormal cumulative distribution plots to determine if capping was required and if so at what level. The
gold grade distribution within the Thor mineralized solids showed multiple overlapping lognormal
populations (Figure 25) which when partitioned showed 6 overlapping gold populations.
Figure 25: Lognormal Cumulative Frequency Plot for Au in Thor Mineralized Solids
85
Table 15: Au Populations in Thor Mineralized Solids
Population
1
2
3
4
5
6
Mean Au (g/t)
163.00
35.78
7.39
0.65
0.16
0.02
Percentage Of Total
0.15 %
1.00 %
3.06 %
40.50 %
34.49 %
20.80 %
Number of Assays
5
30
91
1,211
1,031
620
Of these 6 gold populations the highest (population 1), at 0.15% of the data, represents widely spaced outlier
high-grades that should be capped. Populations 2 and 3 probably represent the quartz vein intersections
while perhaps populations 4 and 5 represent the disseminated and lower-grade styles of mineralization.
Population 6 represents internal waste. A threshold that would separate the outliers from the remaining data
would be two standard deviations above the mean of population 2, a value of 66 g/t Au. A total of 10 Au
assays were capped at 66 g/t. A similar procedure was used to cap 25 assays outside the mineralized solids
at 4.0 g/t Au. The results of capping are shown in Table 16.
Table 16: Capped Gold assay statistics inside and outside the Thor Mineralized Solids
Number of Assays
Mean Au Grade
Standard Deviation
Minimum Value
Maximum Value
Coefficient of Variation
14.2
Inside Thor Solids Au (g/t)
2,988
1.14
4.82
0.001
66.00
4.21
Outside Thor Solids Au (g/t)
7,569
0.09
0.32
0.001
4.00
3.62
Composites
Drillhole sample lengths ranged from a minimum of 0.10 m to a maximum of 4.0 m within the Thor
mineralized solids. A total of 85% of the assays had sample lengths between 1 and 2 m. A composite length
of 2.5 m was chosen to best fit the data. Uniform down-hole composites 2.5 m in length were formed
honouring the Thor mineralized solids boundaries. Intervals less than 1.25 m at the edges of the solids were
combined with adjoining samples. In this manner, a uniform support of 2.5± 1.25 m was created. The
composite statistics are tabulated in Table 17 below.
Table 17: Gold 2.5 m Composite statistics inside and outside the Thor Mineralized Solids
Number of Assays
Mean Au Grade
Standard Deviation
Minimum Value
Maximum Value
Coefficient of Variation
Inside Thor Solids Au (g/t)
1,615
1.04
3.16
0.001
45.65
3.05
86
Outside Thor Solids Au (g/t)
4,765
0.05
0.16
0.001
2.92
3.37
The Au grade distribution from 2.5 m composites was examined using a lognormal cumulative frequency
plot. Again, 6 overlapping lognormal populations were identified (Table 18).
Table 18: Au Populations for 2.5 m Composites in Thor Mineralized Solids
Population Mean Au (g/t) Percentage
Of Total
1
23.89
0.82 %
2
9.69
0.92 %
3
3.14
4.05 %
4
0.32
82.16 %
5
0.05
5.76 %
6
0.009
6.28 %
Number of
Assays
12
14
61
1,233
86
94
The upper 3 populations are real and represent the higher-grade veins while population 4 represents the
lower-grade stockwork and disseminated styles of mineralization. Populations 5 and 6 represent internal
waste within the mineralized solids. A threshold of 2 standard deviations above the mean of population 4,
a value of 2 g/t Au would separate the higher-grade populations from the more prevalent lower-grade style.
14.3
Variography
Since a high-grade gold component is superimposed on a more prevalent lower-grade style of
mineralization and there is insufficient data at present to model this high-grade, an indicator approach was
used to model the deposit. Using an indicator methodology can utilize the higher-grade material even if the
exact limits of the structures are at present unknown. The composite database is simplified and broken into
two sets of data based on the threshold of 2 g/t Au. Samples below 2 g/t Au are assigned a value of 0 and
those ≥ 2 g/t Au are assigned a value of 1. The 0’s and 1’s are then modelled using variography to determine
the orientation of the higher-grade mineralization. The idea is to estimate a value between 0 and 1 for every
block, through kriging these indicator values, that will predict the probability of finding high-grade in that
block.
The indicators were modelled using pairwise relative semivariograms. The nugget effect and sill levels
were first established from the down-hole semivariogram. Horizontal models were produced in four main
horizontal directions: Azimuths 90, 0, 45 and 135 degrees. The longest ranges were detected at Azimuths
135 and 180. Next, the azimuths between 135 and 180 were modelled with the longest range indicated at
azimuth 150. The plunge directions along azimuth 150 were then modelled with the longest range indicated
at Azimuth 150 Dip -48. The vertical plane perpendicular to azimuth 150 was then modelled with the
longest range found at Azimuth 240 Dip -70. Finally, the orthogonal direction to this, of Azimuth 60 Dip 20, was modelled. In all cases, nested spherical models were fit to the data. The semivariogram parameters
are shown below in Table 19 with the models used shown in Appendix 2.
Once the high-grade indicator was modelled, the high-grade composites were removed from the database
and the composites less than 2 g/t Au were modelled in a similar manner as explained above. The directions
87
of maximum continuity, in low-grades, was similar but different from the HG Indicator, with the longest
directions of continuity shown along Azimuth 170 Dip 0 and Azimuth 260 Dip -30.
Table 19: Semivariogram Parameters
14.4
Variable Az / Dip
C0
C1
C2
HG IND. 150 / -48
060 / -20
240 / -70
LG AU
170 / 0
080 / -60
260 / -30
1.40
1.40
1.40
0.38
0.38
0.38
0.40
0.40
0.40
0.20
0.20
0.20
0.20
0.20
0.20
0.12
0.12
0.12
Short Range
(m)
10.0
10.0
15.0
12.0
8.0
10.0
Long Range
(m)
110.0
40.0
110.0
70.0
26.0
40.0
Block Model
A block model, with blocks 5 m x 5 m x 5 m in dimension, was superimposed over the mineralized solids
with the percentage below surface topography and the percentage within the mineralized solids recorded in
each block. The block model origin was as follows:
Lower Left Corner of Model
500520 E
Block size = 5 m
50 columns
5504090 N
Block size = 5 m
196 rows
Top of Model
460 Elevation Block size = 5 m
55 levels
No Rotation
14.5
Bulk Density
A total of 23 samples from drillholes and channels were collected for specific gravity analysis. The samples
were tested by the weight in air/ weight in water method by Northern Abitibi staff in the field. Six of the
samples were shipped to ALS Chemex for checks and were found to have similar results. The results are
tabulated in Table 20 below.
88
Table 20: Specific Gravity Determinations
ALS
Chemex
Viking Field Measurements
Drill Hole
10VK-47 60.3m
10VK-47 65.9m
10VK-51 130m
10VK-51 83m
10VK-65 185.2m
10VK-49 136m
Sample
Rock type
Number
Wt in air
(g)
Wt in water
(g)
Specific
gravity
Specific
gravity
808.3
766.6
859.9
763.2
475.9
492.4
557.5
581.5
598.2
677.5
439.6
738.6
725497
725498
Granite
Granite
Granite
Granite
789.8
815.4
595.4
636.5
Diorite
Diorite
1027.4
987.7
Mineralized qtz vein
807.7
833.9
596.5
823.4
505.6
513.3
487.3
545
483.7
302.8
310.9
350.1
369
377.4
426.7
277.7
472
Average
489.3
503.1
372.1
391.5
Average
691.6
669.3
Average
514.7
520.2
373.7
520.1
314.7
Average
2.74
2.74
2.73
2.73
2.75
2.71
2.69
2.74
2.71
2.70
2.72
2.77
2.73
2.63
2.61
2.67
2.60
2.63
3.06
3.10
3.08
2.76
2.66
2.68
2.71
2.65
2.69
2.73
2.74
722965
725485
726550
275487
725491
725492
725493
725494
725496
725500
Augen gneiss
Augen gneiss
Augen gneiss
Augen gneiss
Augen gneiss
Augen gneiss
Augen gneiss
Augen gneiss
Augen gneiss
Augen gneiss
Augen gneiss
Augen gneiss
10VK-47 71.9m
10VK-47 73.8m
10VK-47 43.7m
10VK-47 42.8m
10VK-53 187.1m
725484
725484
725484
723344
725499
2.64
2.64
3.06
3.04
The average SG in the rock types augen gneiss, granite and diorites was 2.74, which was used for the lowgrade portion of the blocks while the 2.69 for quartz veins was used for the high-grade portion. A weighted
average SG was then used for the mineralized portion of the block.
14.6
Grade Interpolation
Grades for gold were interpolated into all blocks, with some percentage inside the mineralized solids, by a
combination of Ordinary and Indicator Kriging. First, the indicator variable (HG IND) was kriged into the
blocks producing a number between 0 and 1, which represents the probability of finding high-grade in that
block. Then the grade for the low-grade material (LG Au) was estimated into each block using only
composites below 2 g/t Au. Finally, for all blocks with a probability of having high-grade (Kriged IND >
89
0.0), a grade for the high-grade material (HG Au) was estimated using composites with Au ≥ 2.0 g/t. The
final grade for the block was a weighted average determined as follows:
Au Grade = (HG IND * HG Au) + ((1 – HG IND) * LG Au)
All kriging runs were completed in a series of 4 passes with the search ellipse for each pass a function of
the semivariogram range. For the first pass, the search ellipse was set to ¼ of the semivariogram range in
each of the three principal directions. A minimum of 4 composites were required to estimate a block. For
all blocks not estimated in pass 1, a second pass using ½ the semivariogram range was completed. A third
pass using the full range and a fourth pass using twice the range completed the kriging exercise. In all
passes, the maximum number of composites used was set to 12 with a maximum of 3 from any single
drillhole. The search parameters and number of blocks estimated in each pass, for each run, are tabulated
in Table 21 below.
Table 21: Kriging Parameters
Variable Pass Number
Estimated
HG IND 1
14,093
2
17,670
3
3,057
LG Au
1
2,377
2
15,433
3
14,708
4
3,057
HG Au
1
1,611
2
4,410
3
3,599
4
751
Az/Dip
150 / -48
150 / -48
150 / -48
170 / 0
170 / 0
170 / 0
170 / 0
150 / -48
150 / -48
150 / -48
150 / -48
Dist.
(m)
27.5
55.0
110.0
17.5
35.0
70.0
140.0
27.5
55.0
110.0
220.0
Az/Dip
060/-20
060/-20
060/-20
080 / -60
080 / -60
080 / -60
080 / -60
060/-20
060/-20
060/-20
060/-20
Dist.
(m)
10.0
20.0
40.0
6.5
13.0
26.0
52.0
10.0
20.0
40.0
80.0
Az/Dip
240/-70
240/-70
240/-70
260 / -30
260 / -30
260 / -30
260 / -30
240/-70
240/-70
240/-70
240/-70
Dist.
(m)
27.5
55.0
110.0
10.0
20.0
40.0
80.0
27.5
55.0
110.0
220.0
The tonnage for each block was determined by:
Tonnes = (5 x 5 x 5) * % inside solid * SG
Where SG = (2.69 * HG IND) + (2.74 * (1 – HG IND))
14.7
Classification
Based on the study herein reported, delineated mineralization of the Thor Trend within the Viking Property
is classified as a resource according to the following definitions from National Instrument 43-101 and from
CIM (2014):
“In this Instrument, the terms "Mineral Resource", "Inferred Mineral Resource", "Indicated Mineral
Resource" and "Measured Mineral Resource" have the meanings ascribed to those terms by the Canadian
Institute of Mining, Metallurgy and Petroleum, as the CIM Definition Standards on Mineral Resources and
Mineral Reserves adopted by CIM Council, as those definitions may be amended.”
90
The terms Measured, Indicated and Inferred are defined by CIM (2014) as follows:
“A Mineral Resource is a concentration or occurrence of solid material of economic interest in or on the
Earth’s crust in such form, grade or quality and quantity that there are reasonable prospects for eventual
economic extraction. The location, quantity, grade or quality, continuity and other geological
characteristics of a Mineral Resource are known, estimated or interpreted from specific geological
evidence and knowledge, including sampling.” “Material of economic interest refers to diamonds, natural
solid inorganic material, or natural solid fossilized organic material including base and precious metals,
coal, and industrial minerals. “
“The term Mineral Resource covers mineralization and natural material of intrinsic economic interest
which has been identified and estimated through exploration and sampling and within which Mineral
Reserves may subsequently be defined by the consideration and application of Modifying Factors. The
phrase ‘reasonable prospects for eventual economic extraction’ implies a judgment by the Qualified Person
in respect of the technical and economic factors likely to influence the prospect of economic extraction. The
Qualified Person should consider and clearly state the basis for determining that the material has
reasonable prospects for eventual economic extraction. Assumptions should include estimates of cutoff
grade and geological continuity at the selected cut-off, metallurgical recovery, smelter payments,
commodity price or product value, mining and processing method and mining, processing and general and
administrative costs. The Qualified Person should state if the assessment is based on any direct evidence
and testing. “
“Interpretation of the word ‘eventual’ in this context may vary depending on the commodity or mineral
involved. For example, for some coal, iron, potash deposits and other bulk minerals or commodities, it may
be reasonable to envisage ‘eventual economic extraction’ as covering time periods in excess of 50 years.
However, for many gold deposits, application of the concept would normally be restricted to perhaps 10 to
15 years, and frequently to much shorter periods of time.”
Inferred Mineral Resource
“An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality
are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient
to imply but not verify geological and grade or quality continuity.”
“An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral
Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of
Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued
exploration.”
“An Inferred Mineral Resource is based on limited information and sampling gathered through appropriate
sampling techniques from locations such as outcrops, trenches, pits, workings and drill holes. Inferred
Mineral Resources must not be included in the economic analysis, production schedules, or estimated mine
life in publicly disclosed Pre-Feasibility or Feasibility Studies, or in the Life of Mine plans and cash flow
models of developed mines. Inferred Mineral Resources can only be used in economic studies as provided
under NI 43-101.”
“There may be circumstances, where appropriate sampling, testing, and other measurements are sufficient
to demonstrate data integrity, geological and grade/quality continuity of a Measured or Indicated Mineral
Resource, however, quality assurance and quality control, or other information may not meet all industry
norms for the disclosure of an Indicated or Measured Mineral Resource. Under these circumstances, it may
91
be reasonable for the Qualified Person to report an Inferred Mineral Resource if the Qualified Person has
taken steps to verify the information meets the requirements of an Inferred Mineral Resource.“
Indicated Mineral Resource
“An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality,
densities, shape and physical characteristics are estimated with sufficient confidence to allow the
application of Modifying Factors in sufficient detail to support mine planning and evaluation of the
economic viability of the deposit.
Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and
is sufficient to assume geological and grade or quality continuity between points of observation.”
“An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured Mineral
Resource and may only be converted to a Probable Mineral Reserve.“
“Mineralization may be classified as an Indicated Mineral Resource by the Qualified Person when the
nature, quality, quantity and distribution of data are such as to allow confident interpretation of the
geological framework and to reasonably assume the continuity of mineralization. The Qualified Person
must recognize the importance of the Indicated Mineral Resource category to the advancement of the
feasibility of the project. An Indicated Mineral Resource Estimate is of sufficient quality to support a PreFeasibility Study which can serve as the basis for major development decisions.”
Within the Thor Deposit, mineralized zones the geological continuity has been established though surface
mapping, trenching and diamond drillhole interpretation. Grade continuity can be quantified by
semivariogram analysis. By tying the classification to the semivariogram ranges, through the use of various
search ellipses, the resource can be classified as follows:
In general, Blocks estimated during pass 1 and 2 using search ellipses with dimensions up to ½ the
semivariogram range were classified as Indicated.
All remaining blocks were classified as Inferred.
The following tables show the Indicated (Table 22) and Inferred (Table 23) Resource within the mineralized
solids. This resource assumes one could mine to the limits of these solids and no dilution has been
considered. Although at this time, no economic studies have been completed on the Thor Deposit and as a
result, the economic cut-off is unknown, a cut-off grade of 1.0 g/t Au has been highlighted, as a possible
open pit cut-off grade. This cut-off grade was chosen based on similarities of mining at Anaconda’s Pine
Cove Mine also on the island of Newfoundland. The Pine Cove Mine is an active mine producing gold
through the Pine Cove Mill using a cut-off of 0.7 g/t. Based on the Company’s mining experience and the
potential to leverage the Pine Cove infrastructure where possible in any potential development of the Thor
Deposit, a cut-off grade of 1.0 g/t tonne is reasonable in the absence of economic analysis.
Table 22: Thor Trend Indicated Mineral Resources
Au Cut-off
(g/t)
Tonnes> Cut-off
(tonnes)
Grade > Cut-off
Au (g/t)
Contained
Ounces Au
0.50
0.60
1,817,000
1,550,000
1.42
1.57
83,000
78,000
92
0.70
0.80
0.90
1.00
1.10
1.20
1.30
1.40
1.50
2.00
2.50
3.00
1,342,000
1,188,000
1,055,000
937,000
840,000
762,000
689,000
630,000
572,000
357,000
214,000
147,000
1.71
1.84
1.96
2.09
2.21
2.32
2.43
2.53
2.64
3.19
3.83
4.33
74,000
70,000
66,000
63,000
59,600
56,700
53,800
51,200
48,500
36,600
26,400
20,500
Table 23: Thor Trend - Inferred Mineral Resource
Au Cut-off
(g/t)
0.50
0.60
0.70
0.80
0.90
1.00
1.10
1.20
1.30
1.40
1.50
2.00
2.50
3.00
14.8
Tonnes> Cut-off
(tonnes)
847,000
688,000
592,000
502,000
412,000
350,000
300,000
262,000
231,000
200,000
176,000
94,000
48,000
29,000
Grade > Cut-off
Au (g/t)
1.15
1.29
1.40
1.52
1.66
1.79
1.91
2.02
2.12
2.25
2.36
2.90
3.56
4.10
Contained
Ounces Au
31,000
29,000
27,000
24,000
22,000
20,000
18,400
17,000
15,800
14,400
13,300
8,800
5,500
3,800
Model Verification
North-south cross sections showing the kriged block Au grades and drillhole composites, both colour coded
by grade, were produced to validate the block model. Two sections are shown in Figure 26 and Figure 27.
In general, the block grades match the composite grades well and there is no indication of bias present.
93
5504400N
5504500N
5504600N
5504700N
5504800N
5504900N
5505000N
5505100N
5505200N
500
5504300N
500
5504200N
0.314
0.268
0.268
0.267
0.267
0.267
0.267
0.267
0.267
0.267
0.267
0.267
0.268
0.268
0.268
0.269
0.269
0.269
0.271
0.271
0.271
0.272
0.228
0.258
0.339
0.339
0.341
0.236
0.241
0.236
0.226
0.230
0.236
0.231
0.256
0.246
0.239
300
0.176
0.230
0.247
0.181
0.197
0.199
0.261
0.184
0.189
0.189
0.193
0.188
0.183
0.311
0.838
0.309
0.298
0.318
0.323
0.324
0.324
0.322
0.849
0.888
0.344
0.347
0.342
0.338
0.988
0.899
0.368
0.323
0.310
0.277
0.984
0.890
0.298
0.284
0.273
0.267
0.252
0.263
0.262
0.259
0.327
0.377
0.944
0.324
0.376
0.354
0.957
0.347
0.344
0.344
0.333
0.339
0.182
0.184
0.185
0.261
0.311
0.273
0.238
0.287
0.289
0.287
0.221
0.266
0.129
0.129
0.288
0.291
0.373
0.265
0.260
0.254
0.129
0.256
0.243
0.275
0.786
0.286
0.279
0.278
0.333
0.353
0.369
0.329
0.321
0.338
0.301
0.303
0.330
0.220
0.245
0.250
0.256
0.202
0.235
0.247
0.250
0.337
0.314
0.354
0.309
0.198
0.198
0.180
0.160
0.233
0.211
0.288
0.289
0.289
0.289
0.288
0.289
0.302
0.302
0.302
0.302
0.302
0.302
0.302
0.264
0.324
0.279
0.187
0.149
0.136
0.136
0.136
0.424
0.081
0.126
0.365
0.510
0.657
0.740
0.420
0.426
0.212
0.386
0.460
0.276
0.430
0.148
0.489
0.324
0.329
0.331
0.315
0.314
0.331
0.340
0.311
0.803
0.254
0.258
0.280
0.254
0.261
0.723
0.264
0.263
0.263
0.248
0.302
0.360
0.288
0.275
0.479
0.362
0.290
0.294
0.293
0.315
0.301
0.697
0.243
0.245
0.221
0.221
0.218
0.242
0.288
0.284
0.479
0.293
0.306
0.303
0.370
0.381
0.334
0.370
0.721
0.277
0.276
0.270
0.257
0.257
0.256
0.259
0.310
0.314
0.282
0.281
0.278
0.247
0.219
0.263
0.262
0.303
0.338
0.146
0.165
0.172
0.288
0.296
0.297
0.240
0.199
0.213
0.273
0.278
0.249
0.249
0.249
0.241
0.230
0.274
0.229
0.231
0.231
0.232
0.096
0.211
0.198
0.205
0.227
0.203
0.208
0.207
0.384
0.488
0.501
0.366
0.427
0.327
0.396
0.279
0.356
0.405
0.270
0.259
0.627
0.618
0.543
0.691
0.723
0.761
0.757
1.421
1.054
1.002
0.891
0.766
0.559
0.655
0.427
0.540
0.533
0.546
0.973
0.825
0.358
0.355
0.393
0.497
0.511
0.418
0.499
0.569
0.510
0.512
0.494
0.469
0.461
0.655
1.105
0.139
0.141
0.255
0.785
0.397
0.468
0.468
0.446
0.321
0.371
0.348
0.294
0.436
0.364
0.331
0.595
0.382
0.235
1.058
0.154
0.254
0.266
0.277
0.874
0.742
0.323
0.393
0.345
0.344
0.411
0.381
0.387
0.449
0.381
0.242
0.270
0.269
0.527
1.031
0.875
1.600
2.581
1.941
1.056
0.613
0.605
0.630
0.711
0.707
2.468
3.509
1.863
2.153
1.215
1.479
1.569
1.552
2.500
1.083
0.682
0.578
0.309
0.308
0.667
0.579
0.271
2.439
0.716
0.670
0.591
0.203
0.203
0.204
0.482
0.527
0.499
0.638
1.163
1.341
1.670
2.251
1.397
1.473
1.186
1.452
1.674
2.045
0.548
0.545
0.830
0.848
0.845
0.655
0.764
0.836
0.599
0.641
0.597
0.588
0.588
0.532
0.591
0.591
0.833
0.447
0.461
0.466
0.414
0.375
0.345
0.114
0.485
0.109
0.168
0.163
0.153
0.155
0.152
0.385
0.352
0.303
0.201
0.304
0.292
0.267
0.247
0.289
0.314
0.354
0.390
0.416
0.431
0.416
1.488
1.093
0.325
0.329
0.440
0.403
0.399
0.578
1.234
0.501
0.492
0.349
0.347
0.375
0.640
1.095
0.686
0.356
0.389
0.355
0.377
0.555
0.877
0.324
0.588
0.546
0.424
0.275
0.129
0.637
0.622
0.570
0.357
0.104
0.597
1.191
0.298
0.113
0.666
0.629
0.594
0.578
0.110
0.566
0.625
0.625
0.504
0.397
0.135
0.670
0.557
0.479
0.468
0.361
0.119
0.133
0.678
0.543
0.398
0.334
0.378
0.121
0.161
0.668
0.326
0.342
0.396
0.365
0.288
0.103
0.129
0.991
0.590
0.271
0.458
0.390
0.618
0.129
0.725
0.882
0.310
0.637
0.790
0.782
1.131
1.216
0.694
0.513
0.466
0.310
0.635
1.380
0.330
0.648
0.642
0.371
0.634
0.707
0.695
0.781
0.585
0.736
0.646
0.379
0.679
1.199
1.398
1.517
0.708
0.713
0.695
0.873
0.348
0.665
2.105
1.046
1.226
0.606
0.752
0.765
0.901
0.501
0.310
0.573
0.505
0.175
0.551
0.420
0.373
0.340
0.470
0.143
0.147
0.153
0.506
0.526
0.565
0.551
0.531
0.565
0.556
0.538
0.644
0.823
0.771
0.547
0.489
0.458
0.460
0.260
0.451
0.280
0.386
0.578
0.412
0.418
0.424
0.368
0.205
0.280
0.275
0.275
0.318
0.322
0.540
0.250
0.247
0.434
0.455
0.653
0.651
0.589
0.634
0.626
0.966
0.479
0.574
0.539
0.551
0.577
0.540
0.512
0.487
0.440
0.481
0.372
0.378
1.893
1.285
0.630
0.677
0.498
0.469
0.464
0.494
0.412
0.729
0.822
0.896
0.902
0.818
0.838
0.560
0.430
0.451
0.400
0.635
0.415
0.447
0.407
0.535
0.409
0.442
1.223
0.617
0.721
0.587
0.556
0.455
0.530
0.567
0.608
0.508
0.324
0.406
0.417
0.432
0.358
0.426
0.434
0.491
0.600
0.653
0.911
0.890
0.623
0.619
0.524
0.467
0.460
0.467
0.379
0.389
0.766
1.441
0.492
0.465
0.735
0.226
0.213
0.204
0.231
0.232
0.228
0.202
0.206
0.262
0.274
0.304
0.316
0.393
0.396
0.398
0.489
0.492
0.607
0.607
0.568
0.570
0.509
0.704
0.421
0.473
0.484
0.489
0.407
0.409
0.537
0.328
0.135
0.166
0.612
0.946
0.322
0.328
0.673
0.539
0.284
0.295
0.364
0.337
0.303
0.301
0.333
0.331
0.254
0.292
0.301
0.305
0.298
0.337
0.336
0.351
0.337
0.371
0.425
0.410
0.295
0.649
0.329
0.310
0.267
0.267
0.379
0.345
0.346
0.355
0.322
0.949
0.345
0.320
0.303
0.316
0.305
0.307
0.334
0.208
0.199
0.403
0.181
0.708
0.330
0.420
0.533
0.466
0.463
0.676
0.602
0.438
0.384
0.359
0.383
0.288
0.270
0.294
0.284
0.339
0.709
0.363
0.160
0.170
0.588
0.936
0.863
0.769
0.163
0.111
0.104
0.259
0.264
0.123
0.081
0.203
0.206
0.214
0.310
0.259
0.262
0.262
0.076
1.674
0.818
1.156
0.899
0.162
0.163
0.180
0.187
0.105
0.096
0.067
0.212
0.281
0.249
0.248
0.219
0.222
0.260
0.212
0.212
0.219
0.670
0.723
0.187
2.175
1.269
0.522
0.205
0.206
0.201
0.279
0.209
0.186
0.184
0.221
0.229
0.175
0.181
0.257
0.203
0.117
0.122
0.177
0.187
1.920
2.601
2.153
0.367
0.093
0.169
0.195
0.177
0.153
0.105
0.104
0.123
0.107
0.230
0.258
0.270
0.302
0.354
0.470
0.474
1.013
2.186
3.347
2.404
0.086
0.109
0.108
0.327
0.504
0.456
0.785
0.709
0.673
0.317
0.225
0.121
1.023
1.044
3.547
3.522
1.040
1.002
1.937
3.505
1.148
1.940
1.926
0.916
1.789
1.442
1.104
1.720
0.317
0.291
0.195
0.670
0.547
0.877
1.877
0.979
0.428
0.632
0.360
0.678
0.799
0.907
0.388
0.273
0.506
0.127
0.293
0.235
0.148
0.131
0.250
0.158
0.150
0.162
0.147
0.222
0.182
0.206
0.173
0.216
0.225
0.185
0.208
0.164
1.113
1.142
0.194
0.168
0.203
0.795
0.189
0.072
1.043
1.212
0.254
0.253
0.252
0.115
1.175
0.137
0.245
0.210
0.138
0.139
0.184
0.189
0.335
0.369
0.255
0.264
0.263
0.166
0.215
0.269
0.301
0.295
0.316
0.120
0.122
0.334
0.332
0.333
0.373
0.325
0.339
0.363
0.359
0.083
0.264
0.272
0.421
0.502
0.534
0.409
0.299
0.500
0.338
0.401
0.454
0.473
0.426
0.459
0.244
0.446
0.242
0.507
0.310
0.517
0.520
0.589
0.228
0.298
0.727
0.285
0.287
0.330
0.336
0.338
0.549
0.485
0.498
0.628
0.294
0.507
0.228
0.238
0.237
0.252
0.251
0.250
0.188
0.144
0.171
0.170
0.128
0.123
0.123
0.127
0.130
0.157
0.133
0.136
0.135
0.146
0.116
0.118
0.166
0.314
0.178
0.313
0.267
0.370
0.458
0.690
0.561
0.505
0.455
0.548
0.427
0.558
0.344
0.252
0.201
0.214
0.213
0.205
0.207
0.209
0.210
0.210
0.200
0.202
0.203
0.203
0.203
0.195
0.196
0.196
0.194
0.195
0.196
0.209
0.210
0.210
0.211
0.235
0.235
0.235
0.235
0.236
0.236
0.200
200
1.026
1.733
0.586
0.252
0.564
0.766
0.927
0.380
0.458
1.713
0.782
0.603
0.774
1.818
0.620
0.345
0.390
0.693
0.932
1.096
0.337
0.444
0.135
0.214
0.871
1.256
1.116
2.599
0.369
0.476
0.869
0.580
0.788
0.524
0.487
0.425
1.351
1.175
0.641
2.874
0.483
0.439
0.559
0.560
0.664
0.295
0.822
0.115
0.529
0.235
0.128
0.609
0.866
0.710
0.382
0.114
0.211
0.644
0.894
0.613
0.286
0.087
0.192
0.774
0.860
0.598
0.371
0.146
0.125
0.822
1.147
0.629
0.278
0.228
0.155
0.782
0.651
0.504
0.229
0.147
0.982
0.676
0.451
0.393
0.191
0.164
1.564
1.513
0.426
0.208
0.207
2.485
0.732
0.240
0.141
0.409
0.329
2.928
1.471
0.500
0.198
1.231
1.529
0.930
0.656
2.581
0.457
0.199
0.275
0.249
0.229
0.185
1.333
1.686
1.323
3.149
0.160
0.197
0.200
0.238
0.227
0.188
1.333
1.360
1.805
1.632
3.476
0.294
0.157
0.212
0.181
1.514
2.102
1.772
2.065
3.618
0.331
0.177
0.191
0.245
2.084
1.984
2.041
2.122
0.159
0.167
0.191
0.225
2.393
0.482
0.727
1.785
1.299
0.449
0.301
0.167
0.188
0.161
1.906
1.669
1.231
1.277
0.283
0.135
0.191
0.178
1.312
1.299
1.391
1.731
0.299
0.165
0.185
0.199
0.221
1.754
2.128
1.554
2.197
1.527
0.235
0.171
0.187
0.233
2.108
2.445
3.114
2.831
2.490
0.164
0.306
0.218
0.183
0.208
0.162
2.032
3.585
3.485
4.325
4.482
0.266
0.275
0.160
0.138
0.205
0.181
2.877
4.094
4.541
3.375
3.063
0.236
0.271
0.201
0.143
0.200
0.218
0.258
0.282
0.265
0.197
0.157
0.216
0.244
0.257
0.277
0.289
0.181
0.134
0.217
0.252
0.307
0.196
0.242
0.284
0.170
0.134
0.217
0.181
0.272
0.252
0.282
0.295
0.178
0.134
0.303
0.261
0.296
0.263
0.291
0.171
0.172
0.219
0.210
0.293
1.586
4.134
3.740
2.450
0.480
0.317
0.256
0.174
0.309
1.190
1.761
2.436
1.777
0.437
0.299
0.404
0.220
0.219
0.138
0.397
1.091
1.261
0.308
0.667
0.468
0.320
0.482
0.237
0.343
0.179
0.290
0.278
0.397
0.267
0.320
0.279
0.321
0.266
0.414
0.304
0.325
1.155
1.293
0.311
0.267
0.210
0.355
0.086
0.182
0.345
0.192
0.213
0.340
0.283
3.499
4.796
3.443
3.678
2.813
0.424
0.176
0.343
0.186
0.455
0.457
0.358
0.274
0.225
0.218
0.456
0.446
0.358
0.174
0.235
0.630
0.221
0.461
0.275
0.174
0.635
0.199
0.521
0.313
0.219
0.219
0.528
0.273
0.219
0.183
0.518
0.177
0.215
0.224
0.525
0.314
0.210
0.192
0.531
0.200
0.220
0.255
1.100
0.288
0.405
0.200
0.179
0.184
0.183
0.516
0.292
0.217
0.270
0.201
0.183
0.186
0.541
0.210
0.350
0.483
0.516
0.205
0.314
4.161
3.614
4.871
3.798
3.649
0.211
200
0.314
0.267
5.022
4.385
3.799
3.132
2.798
400
0.464
0.312
0.267
0.526
0.502
0.227
0.280
0.337
0.267
3.348
3.715
2.995
1.137
0.524
0.524
0.229
0.305
0.399
4.033
3.335
300
400
2.344
LEGEND
100
Au >= 0.20 < 0.40 g/t
Au >= 0.40 < 0.60 g/t
Au >= 0.60 < 0.80 g/t
Au >= 0.80 < 1.00 g/t
Au >= 1.00 g/t
100
Au > 0.0 < 0.20 g/t
SECTION 500617.5 E - SHOWING INDICATOR KRIGING FOR AU ( g/t)
5504200N
5504300N
5504400N
5504500N
5504600N
5504700N
5504800N
5504900N
5505000N
Figure 26: Section 500617 E showing Kriged Au grades in estimated blocks and composite both colour coded
94
5505100N
5505200N
5504400N
5504500N
5504600N
5504700N
5504800N
5504900N
5505000N
5505100N
5505200N
5505100N
5505200N
500
5504300N
500
5504200N
0.444
0.392
1.336
1.340
0.447
0.399
1.537
1.309
1.224
0.959
0.411
1.409
3.023
1.347
1.871
0.249
0.252
0.946
0.817
0.268
0.263
0.251
0.766
0.759
0.315
0.313
0.269
0.365
0.335
0.348
0.831
0.382
0.243
1.672
0.373
1.627
0.456
0.423
1.259
1.134
1.302
0.216
0.323
1.043
0.342
0.912
0.362
0.219
0.222
0.832
1.390
1.197
0.718
2.386
2.620
0.256
0.246
1.100
0.279
0.879
0.279
0.848
0.176
0.170
0.172
0.671
0.726
0.535
1.219
0.245
0.194
0.194
0.210
0.829
0.834
0.190
0.510
0.724
0.260
0.264
0.268
0.299
0.302
2.017
0.152
0.134
0.151
0.141
0.147
1.269
0.202
0.520
0.269
0.301
0.304
0.302
0.300
0.506
0.145
0.151
0.170
0.174
0.995
1.002
0.972
0.570
0.272
0.274
0.277
0.126
0.163
0.195
0.220
0.583
0.574
0.676
0.177
0.232
1.014
1.014
0.624
0.565
0.168
0.230
0.644
0.269
0.923
0.448
0.316
0.346
0.354
0.364
0.153
0.332
0.335
0.341
0.336
0.328
0.145
0.291
0.274
0.262
0.278
0.280
0.296
0.302
0.559
0.510
0.374
0.617
0.316
0.259
0.270
0.376
0.344
0.567
0.193
0.230
0.361
0.356
0.351
0.352
0.307
0.504
0.455
0.216
0.238
0.177
0.176
0.175
0.175
0.380
0.361
0.171
0.151
0.285
0.274
0.245
0.214
0.227
0.287
0.274
0.235
0.223
0.337
0.170
0.169
0.175
0.166
0.254
0.253
0.525
0.629
0.274
0.683
0.276
0.363
0.600
1.668
1.840
3.537
4.405
7.630
2.803
3.364
2.144
1.149
1.825
2.733
1.532
2.735
1.687
2.208
1.757
1.651
2.494
1.779
1.447
1.521
2.547
1.803
2.815
1.781
1.302
2.814
1.489
0.438
0.486
0.518
0.677
0.867
0.766
0.728
0.638
0.772
0.811
1.748
1.820
0.775
2.284
1.559
1.163
0.673
0.699
0.928
0.998
0.980
0.698
0.807
0.835
0.609
0.641
0.624
1.212
1.672
0.994
1.411
2.085
0.916
0.700
0.596
0.597
0.915
0.815
0.803
0.759
0.804
0.797
0.731
0.648
1.296
1.644
1.032
0.867
0.416
0.512
0.654
0.521
0.779
0.622
0.458
0.594
0.376
1.531
2.327
2.312
2.434
3.635
3.029
2.203
1.507
1.672
1.260
2.425
1.830
2.084
2.054
1.241
4.319
1.861
2.945
0.475
0.973
1.841
1.295
1.669
3.182
3.252
2.445
2.223
1.281
1.124
1.487
1.669
0.536
0.481
0.625
0.649
0.639
1.407
0.486
0.476
0.534
1.273
1.676
1.000
0.938
3.169
2.748
3.245
1.736
0.816
1.013
0.928
0.785
1.106
0.374
0.352
0.339
0.340
0.324
0.522
0.591
0.832
1.047
1.054
1.502
0.306
0.976
0.541
1.579
1.325
0.426
1.097
2.188
2.020
1.070
0.929
0.814
0.906
1.684
0.754
1.001
0.173
0.163
0.162
0.094
0.359
0.559
0.548
0.451
0.977
0.979
0.299
0.160
0.357
0.394
0.364
0.221
0.093
0.275
0.355
2.049
1.707
1.150
1.193
1.899
2.216
1.677
1.143
0.183
1.712
1.667
2.889
1.671
0.246
0.161
0.222
2.120
0.072
1.582
0.055
0.044
0.116
0.111
0.749
1.948
0.102
2.213
0.114
0.126
0.072
0.066
0.465
0.693
1.624
1.043
0.097
0.165
0.282
0.105
0.102
0.101
0.099
0.095
0.481
0.483
0.078
0.081
0.092
0.097
0.167
0.162
0.169
0.186
0.161
0.128
0.107
0.120
0.061
0.071
0.082
0.105
0.104
0.760
0.158
0.144
0.164
0.162
0.155
0.127
0.091
0.054
0.055
0.071
0.109
0.686
0.945
0.052
0.698
0.037
0.038
0.040
0.714
0.809
0.675
0.606
0.692
2.123
1.430
0.203
0.170
0.183
1.823
1.354
0.688
1.220
0.662
0.125
0.101
0.102
0.106
0.052
0.099
0.116
0.083
0.074
0.085
0.125
0.117
0.123
0.101
0.280
0.253
0.252
0.279
0.229
0.259
0.284
0.286
0.281
1.306
1.244
3.472
0.104
0.277
2.207
1.689
1.662
2.926
0.129
0.277
1.368
1.477
0.594
1.763
1.027
0.066
0.278
0.201
0.778
0.157
0.162
0.744
0.175
0.172
0.686
0.167
0.168
0.148
0.158
0.163
0.640
0.169
0.185
0.110
0.127
0.144
1.070
0.187
0.188
0.312
0.306
0.936
0.330
0.311
0.334
0.327
0.340
0.356
0.381
0.821
0.323
0.355
0.354
0.880
0.384
0.365
0.329
0.324
0.303
0.296
0.299
0.296
0.283
0.423
0.454
0.438
0.441
0.363
0.369
0.375
0.379
0.311
0.334
0.344
0.361
0.345
0.820
0.287
0.340
0.323
0.329
1.233
0.771
0.255
0.265
0.257
1.283
1.380
0.319
0.308
1.005
1.069
0.895
0.805
0.334
1.078
0.266
0.800
1.038
0.982
0.102
1.652
1.085
0.388
0.393
0.258
0.892
0.975
0.919
0.290
0.691
0.413
0.547
0.276
0.513
0.442
0.545
0.454
0.456
3.474
0.406
1.864
2.045
1.185
0.226
0.887
1.706
1.491
0.888
0.968
1.087
1.292
1.578
1.353
3.043
5.854
6.077
4.456
1.000
0.158
2.289
0.877
0.238
0.260
1.746
1.698
1.636
1.158
1.362
1.623
1.838
1.405
3.796
4.742
5.370
4.666
0.247
3.754
0.245
0.264
0.250
1.103
0.746
1.566
2.050
1.591
0.407
1.128
1.162
1.448
2.221
4.632
6.059
3.111
5.569
4.198
0.448
0.383
0.409
0.547
0.554
0.595
1.478
1.345
0.364
0.951
4.543
3.776
0.872
0.777
1.187
1.294
0.918
1.448
1.697
1.510
2.353
1.582
1.226
2.952
1.198
0.525
0.525
0.597
0.638
0.392
0.528
0.483
0.492
0.489
0.485
0.483
0.481
0.480
0.481
0.482
0.484
0.487
0.475
0.479
0.507
0.369
0.231
0.232
0.385
0.404
0.401
0.527
0.522
0.218
0.216
0.215
0.213
0.212
0.211
0.366
0.366
0.343
0.212
0.214
0.474
0.226
0.227
0.214
0.376
0.188
0.281
0.373
0.222
0.221
0.220
0.219
0.217
0.216
0.214
0.212
0.211
0.216
0.215
0.216
0.210
0.211
0.212
0.202
0.358
0.293
0.275
0.278
0.480
0.236
0.235
0.234
0.221
0.227
0.226
0.335
0.644
0.329
0.324
0.319
0.316
0.313
0.311
0.313
0.319
0.294
0.350
0.284
0.373
0.354
0.340
0.413
0.408
0.402
0.380
0.374
0.321
0.329
0.325
0.321
0.309
0.291
0.297
0.291
0.510
0.348
0.424
0.327
0.325
0.415
0.411
0.406
0.401
0.396
0.391
0.372
0.338
0.327
0.311
0.462
0.414
0.411
0.409
0.334
0.334
0.387
0.394
0.464
0.532
0.553
0.332
0.884
0.515
0.818
1.157
0.534
0.582
0.654
0.746
1.000
0.884
0.582
0.715
0.787
1.038
0.750
0.615
0.642
0.530
0.369
0.369
0.339
0.337
0.429
0.427
0.424
0.421
0.268
0.502
0.412
0.428
0.429
0.382
0.380
0.439
0.437
0.433
0.395
0.391
0.387
0.737
0.775
0.595
0.520
0.522
0.524
0.471
0.451
0.448
0.490
0.674
1.101
0.994
1.009
0.898
0.868
1.155
0.581
0.630
0.639
0.635
0.623
0.616
0.493
0.936
0.997
0.342
0.340
0.337
0.559
0.480
0.636
0.636
0.624
0.615
0.231
0.682
0.619
0.592
0.479
0.939
0.723
0.511
0.919
0.527
0.469
0.460
0.230
0.289
0.285
0.216
0.394
0.291
0.285
0.280
0.272
0.485
0.338
0.310
0.313
0.287
0.293
0.353
0.188
0.518
0.255
0.182
0.181
0.179
0.183
0.191
0.192
0.255
0.173
0.185
0.184
0.181
0.187
0.167
0.255
0.293
0.294
0.352
0.341
0.365
0.303
0.559
0.298
0.231
0.197
0.343
0.930
0.590
0.237
0.208
0.349
0.465
0.275
0.246
0.166
0.350
0.570
0.388
0.353
0.277
0.222
0.364
0.819
0.543
0.295
0.369
0.285
0.391
0.353
0.422
0.543
0.314
0.570
0.281
0.361
0.543
0.542
0.141
0.328
0.293
2.010
0.180
0.259
2.703
0.539
0.259
0.191
0.751
0.409
0.558
4.591
1.057
0.317
0.179
5.561
1.072
0.410
0.184
0.216
1.557
0.855
0.836
0.346
0.213
0.473
0.733
1.224
2.430
0.734
0.355
0.181
0.294
0.640
3.988
2.393
0.691
0.331
0.182
0.825
7.468
5.390
7.021
1.062
0.259
0.169
6.238
3.865
4.313
7.905
0.981
0.270
0.162
4.081
4.856
6.731
8.155
0.905
0.507
0.153
3.862
3.697
4.015
2.057
0.752
0.498
0.221
3.110
1.973
1.486
0.378
0.537
0.355
0.293
0.255
0.822
0.607
0.467
1.423
0.987
0.388
0.191
0.347
0.398
1.417
0.595
0.222
0.292
0.192
0.319
0.308
0.764
0.289
1.042
1.487
0.518
0.275
0.240
0.181
0.302
0.385
1.749
0.812
0.548
0.080
0.159
0.153
0.344
0.835
1.287
0.781
0.608
0.925
0.468
0.080
0.141
0.151
2.312
0.680
0.598
0.225
0.224
0.114
1.881
0.894
1.595
1.068
1.042
1.158
0.816
0.914
0.494
0.266
1.131
1.397
1.604
0.365
0.916
2.510
0.752
0.273
0.277
1.088
0.336
1.151
0.940
3.931
2.007
0.980
0.424
1.268
0.269
0.271
0.305
0.305
0.277
0.157
0.236
0.222
1.229
1.239
1.383
0.300
0.293
0.295
0.312
0.213
0.187
0.200
0.143
0.222
0.260
0.262
0.248
0.249
0.782
1.692
0.161
0.158
0.283
0.286
0.222
0.160
0.151
0.151
0.150
0.156
0.158
0.709
0.788
0.145
0.160
0.163
0.164
0.158
0.169
0.162
0.162
0.167
0.148
0.148
0.154
0.150
0.151
0.151
0.154
0.176
0.160
0.138
0.138
0.146
0.175
0.176
0.176
0.177
0.166
0.168
0.153
0.166
0.166
0.254
0.234
0.246
0.162
0.669
0.607
0.538
4.164
1.477
0.618
0.479
1.151
0.160
0.262
0.263
0.378
0.443
3.415
0.845
1.136
0.909
1.436
0.154
0.243
0.268
0.314
1.430
1.219
0.449
0.577
1.922
1.036
1.925
2.761
1.746
0.472
0.460
1.843
1.526
2.176
2.480
2.006
1.691
0.468
0.527
1.592
1.400
1.579
2.345
2.113
0.597
1.050
1.653
1.754
2.648
1.527
1.465
0.448
0.891
1.669
1.258
3.264
0.459
0.645
1.271
2.474
1.686
1.615
0.547
0.528
0.785
1.186
0.304
3.053
1.236
0.592
0.528
0.685
0.486
0.333
1.806
1.314
0.736
0.685
0.807
0.481
0.295
1.856
1.732
0.971
0.607
0.578
0.479
0.465
0.332
1.134
2.632
1.669
0.519
0.550
0.436
0.526
0.517
0.352
3.020
0.600
0.382
0.476
0.481
0.370
0.460
0.253
0.971
4.120
1.889
0.283
0.100
0.159
0.151
0.153
0.934
0.125
0.167
0.151
1.225
0.108
0.283
0.153
1.192
0.118
0.564
0.151
1.342
0.156
0.409
0.161
2.181
0.186
0.462
0.152
1.508
0.135
0.430
1.095
0.355
0.546
0.143
0.926
0.380
2.281
0.179
0.571
0.233
1.941
0.089
0.916
0.222
2.595
0.137
0.326
0.149
1.482
0.168
0.170
0.508
0.847
1.466
0.322
0.553
1.955
0.248
0.172
0.578
2.181
0.200
0.526
0.269
3.107
0.120
0.309
0.291
6.438
0.155
0.405
0.578
0.837
5.620
0.509
0.383
0.900
3.546
0.530
0.365
0.294
1.945
0.249
0.189
0.835
1.782
0.214
0.829
0.389
0.398
0.356
0.155
0.731
0.145
0.786
0.284
0.284
0.406
0.380
1.843
2.652
0.594
0.350
0.272
0.282
0.388
1.905
0.041
0.638
0.250
0.822
0.265
0.276
0.136
2.488
1.304
0.973
0.242
0.796
0.189
0.261
0.133
1.636
1.758
1.292
0.183
0.886
0.267
0.366
0.132
0.135
0.889
1.257
0.266
0.540
1.686
0.270
0.362
0.132
0.135
0.133
1.625
0.923
0.196
0.353
0.578
1.633
1.707
0.738
0.277
1.085
0.585
0.280
0.132
0.133
0.132
0.623
0.523
0.588
2.920
0.248
0.285
0.289
0.278
0.218
0.130
0.129
0.130
0.598
0.367
0.298
0.258
0.232
0.626
0.666
0.818
0.383
1.449
1.079
0.713
0.341
0.762
0.989
1.806
1.271
1.922
1.739
0.248
0.471
0.376
0.438
1.389
1.350
2.034
2.120
2.118
0.244
0.652
0.441
0.394
0.371
0.293
2.113
4.256
2.594
2.176
0.238
0.444
0.425
0.388
0.233
0.306
4.478
3.103
1.785
3.218
0.350
0.552
0.414
0.383
0.230
0.281
0.320
3.815
2.629
2.059
6.269
0.322
0.465
0.406
0.378
0.322
0.338
1.483
3.953
2.298
2.355
5.299
0.072
0.598
0.325
1.232
1.426
2.374
2.698
0.205
4.401
0.084
0.534
1.352
0.843
0.555
4.536
2.721
0.232
2.324
0.125
0.268
0.139
0.374
0.124
0.267
0.267
0.399
0.127
0.264
0.396
0.439
7.069
0.381
2.487
0.073
1.352
0.196
0.130
0.128
0.759
1.249
0.137
300
1.842
0.296
0.263
0.339
2.146
0.443
0.942
1.912
2.185
0.459
0.424
3.212
1.723
2.720
0.390
2.139
0.259
5.648
1.488
0.235
0.282
400
0.293
4.897
1.801
300
400
1.451
0.781
0.130
0.196
0.205
0.309
0.359
200
200
0.166
0.322
0.323
LEGEND
Au > 0.0 < 0.20 g/t
100
100
Au >= 0.20 < 0.40 g/t
Au >= 0.40 < 0.60 g/t
Au >= 0.60 < 0.80 g/t
Au >= 0.80 < 1.00 g/t
Au >= 1.00 g/t
SECTION 500667.5 E - SHOWING INDICATOR KRIGING FOR AU ( g/t)
5504200N
5504300N
5504400N
5504500N
5504600N
5504700N
5504800N
5504900N
5505000N
Figure 27: Section 500667 E showing Kriged Au grades in estimated blocks and composite both colour coded
95
15.0 Adjacent Properties
There are no adjacent properties of significance to report.
96
16.0 Other Relevant Data and Information
16.1
Environmental and Surface Title Liabilities
The Viking Project is located adjacent to a tributary of a licensed salmon river and Pine Martin habitat. This
has not created any liability or problem in receiving permits to conduct work. Anaconda has received all
permits to conduct exploration on the property in 2016 and there are no known historical permitting issues.
Further, there does not appear to be any impediment to development. No problematic site environmental
conditions or liabilities are known to Anaconda at the date of this Report. The Company has obtained all
legal permissions or agreements required to access the property for purposes of mineral exploration
activities, and these permits are in good standing at the effective date of this Report.
97
17.0 Interpretation and Conclusions
Anaconda holds a 100% undivided interest in the Viking Project located in the White Bay area of western
Newfoundland, in the province of Newfoundland and Labrador. The property includes four properties:
Viking, Kramer and licences 023770M and 023771M totaling 6,225 hectares.
Both the Viking and Kramer properties contain several zones of orogenic style bedrock gold mineralization,
many of which have not been fully explored or defined. The best-defined zone, includes the Thor Deposit
and is the subject of this Mineral Resource Estimate update, and remains open at depth, to the north and to
the south. The Thor Deposit contains high-grade veins and shoots along with larger zones of lower-grade
mineralization. The outline of low-grade gold mineralization has been fairly well defined over a 600-metre
strike length, whereas individual high-grade shoots contain low drill densities and remain poorly defined.
This Mineral Resource Estimate outlined in this Technical Report is the same as the resource update
provided on December 30, 2011 in a Technical Report titled MINERAL RESOURCE ESTIMATE
UPDATE FOR THE THOR TREND DEPOSIT, NORTHERN ABITIBI MINING CORP., WHITE BAY
AREA, NEWFOUNDLAND AND LABRADOR, CANADA, authored by Dr. Shane Ebert and Mr. Gary
Giroux. No additional material work has been conducted on the Thor Deposit since December 30. 2011.
The Mineral Resource Estimate is based on a database containing 109 holes drilled into the Thor Deposit
totaling 15,574 m of diamond drilling, and 74 lines of surface channel samples cut from trenches using a
diamond saw. Mineralization was constrained within 3D geologic solids built using Gemcom software.
Gold assays within the mineralized solid were capped at 66 g/t Au while those outside the solid were capped
at 4.0 g/t Au. There is insufficient drill data at present to accurately model the high-grade zones along the
Thor Deposit so an indicator approach was used to model the high-grade.
At a cut-off grade of 1.0 g/t Au, the Thor Deposit contains an Indicated Mineral Resource of 63,000 ounces
Au (937,000 tonnes at an average grade of 2.09 g/t) plus an Inferred Mineral Resource of 20,000 ounces
Au (350,000 tonnes at an average grade of 1.79 g/t) (see Table 24 below).
Table 24: Thor Trend - Mineral Resources
Au Cut-off
(g/t)
Tonnes> Cut-off
(tonnes)
Grade > Cut-off
Au (g/t)
Contained
Ounces Au*
Indicated
0.50
1,817,000
1.42
83,000
1.00
937,000
2.09
63,000
2.00
357,000
3.19
36,600
Inferred
0.50
847,000
1.15
31,000
1.00
350,000
1.79
20,000
2.00
94,000
2.90
8,800
98
The mineralized zone measures approximately 600 m in length, 30 to 50 m in width and locally up to 250
m in dip extent, and remains open along strike and to depth. There is good potential to define significant
high-grade gold resources along the trend of the Thor Deposit by detailed drill delineation or underground
exploration along the known high-grade gold shoots.
There is further potential for discovery based on work conducted by previous operators on the Viking
Property – specifically along the large valley to the west, which contains highly altered rocks over a 2-km
strike length and along the area immediately east of the Thor Deposit referred to as the Asgard. The Kramer
Property contains numerous mineralized zones on surface with host rocks and alteration very similar in
style and setting to those observed at the Thor Deposit. The prospectivity of this property remains high for
potential discovery. Licences 023770M and 023771M both contain historic soil and prospecting samples,
though collected as part of a regional exploration effort. This data indicates there are areas within these two
properties that may contain prospective areas for future exploration.
99
18.0 Recommendations
The previous Technical Report dated December 30, 2011 recommended further exploration on the Viking
Property. It was considered prudent by Mr. Ebert and Mr. Giroux to continue drilling and trenching on the
Viking Property to test a suite of IP anomalies both adjacent to the Thor Deposit and to the west of the
deposit in the Viking Trend.
Previous work on the Kramer Property by Spruce Ridge indicates a suite of mineralized zones over a strike
of approximately 1.4 km associated with quartz-carbonate veining and sericitization of host rocks of similar
provenance at the Thor Deposit. Surface sampling indicated the presence of gold mineralization associated
with these areas of alteration. Further work is required on this property to delineate the continuity of
localized alteration systems and if broader zones of mineralization can be found at surface or at depth.
Historic soil sampling from the 1980s predominately by BP and Noranda regionally and on licence
023771M specifically, indicates possible linear trends in soil geochemistry. More work is required to
investigate the soil cover in these areas and to determine if they represent in-situ mineralization.
Based on the available data the following recommendations are made for future work on the Viking Project:
Viking Property – conduct drilling to determine the northern and southern extents of the mineralizing
system associated with the current resource at the Thor Deposit and to test possible IP anomalies in the area
south of the deposit. An initial 3,000-metre diamond drill program is recommended to test the possible
extensions of the Thor Deposit and test existing IP anomalies. Also, a 2,000-metre diamond drill program
is recommended to test the entire strike extent of the Viking Trend with the goal of discovering another
gold deposit.
Kramer Property – conduct systematic channel sampling across the mineralized zones and follow up with
an initial 2,000-metre diamond drill program with the goal of discovering another gold deposit.
Licences 023771M and 023770M – conduct prospecting and detailed soil sampling in areas of historical
soil anomalies.
A budget of $1,000,000 is proposed to conduct this first phase of work outlined above with the
understanding that more diamond drilling will be required to infill areas of the existing resource as well as
areas of new discovery. Table 25 contains a budget for the recommended work program at Viking, Kramer
and licences 023770M and 023771M. It is estimated that the second phase of exploration, if phase 1 is
successful will require expenditures of $2,000,000 - $3,000,000.
Table 25: Budget for recommended work program inclusive of labour, logistics and geochemical analysis
Item
Viking Drilling 5000m
Kramer Drilling 2000m
Channel
sampling/prospecting
Grand Total
Estimated cost $C
625,000
250,000
125,000
1,017,500
100
19.0 References Cited and Selected References
Churchill, R. and Voordouw, R., 2006: First, second, third & fourth year assessment report documenting
reconnaissance prospecting & compilation for map staked licences 09287m (Wizard Property) & Claim
Groups 08878m, 10935m & 12734m (Viking Property), White Bay area, Newfoundland, NTS Sheets
12H10 & 12H11. NLDNR assessment report by Altius Resources Inc., 137 p.
CIM Standards, 2005: Canadian Institute of Mining and Metallurgy - Standards on Mineral Resources
and Reserve: Definitions and Guidelines, prepared by CIM Standing Committee on Reserve Definitions
Adopted by CIM Council on December 11, 2005, 10p.
Cullen, M.P., and Harrington, M., 2011: March 2nd 2011, MINERAL RESOURCE ESTIMATE FOR
THE THOR TREND GOLD DEPOSIT NORTHERN ABITIBI MINING CORP. White Bay Area
Newfoundland and Labrador, Canada. Technical Report for Northern Abitibi Mining Corp., 145 pages.
Deering, P., 1989: First and third year assessment report on geological, geochemical, geophysical and
diamond drilling exploration for Licence 3158 on Claim Blocks 5429 and 5445-5449, Licence 3159 on
Claim Blocks 5433 and 5450 and Licence 3612 on Claim Blocks 4412-4416 in the Silver Mountain area,
Newfoundland for Noranda Exploration Company Limited; NLDNR Assessment File 12H/1093, 1989, 109
p.
Dresen, G., 1991. Stress distribution and the orientation of Riedel shears; Tectonophysics 188, pp. 239–
247
Ebert, S.E., 2008: Fifth year assessment report on trenching at the Viking Property, Mineral Licence
014079m, White Bay area, Newfoundland, NTS Sheets 12H10 & 12H11; NLDNR assessment report for
Altius Resources Inc., 48 p.
Ebert, S. E., 2009: Seventh year assessment report on drilling and trenching at the Viking Property, Mineral
Licence 014079m, white bay area, Newfoundland, NTS Sheets 12H 10 & 12H11; NLDNR assessment
report for Altius Resources Inc., 46p.
Ebert, S.E., 2010: Eighth year assessment report on drilling and trenching at the Viking Property, Mineral
Licence 014079m, White Bay area, Newfoundland, NTS Sheets 12H10 & 12H11; NLDNR assessment
report for Northern Abitibi Mining Corp, 94p.
Froude, T., 2010: Report of Work on the Kramer Property, White Bay Area Newfoundland. Airborne
Survey, Compilation on licence 15519M and Supplementary Report of Work on Prospecting, Trenching
and Assaying on licence 12713M. Assessment work report prepared for Spruce Ridge Resources Ltd. 41
pages. Geofile 012H/2046.
Froude, T., 2011: Report on Diamond Drilling, Trenching and Prospecting Activities by Spruce Ridge
Resources Limited on the Kramer Property Area, and adjacent licences, White Bay Area, Newfoundland.
Licences 12713M, 17095M and 17096M. Assessment work report prepared for Spruce Ridge Resources
Ltd. 255 pages. Geofile 012H/2150.
101
Froude, T. 2013: Report on Trenching and Prospecting Activities by Spruce Ridge Resources Limited on
licences 18601M (1st Year), 19689M (6th Year) and 19690M (6th Year), Kramer Project, White Bay, NL.
Assessment work report prepared for Spruce Ridge Resources Ltd. 70 pages.
Froude, T., 2014: Final Report on Diamond Drilling Activities in Fulfillment of JEA Funding by Spruce
Ridge Resources Limited on the Kramer Property, Western Newfoundland, Licence 19689M. 159 pages.
Groves, D.I., Goldfarb, R.J., Robert, R., Hart, C., 2003, Gold Deposits in Metamorphic Belts: Overview
of Current Understanding, Outstanding Problems, Future Research, and Exploration Significance.
Economic Geology, Vol. 98, 2003, pp. 1–29
Groves, D.I., Goldfarb, R.J., Gebre-Mariam, M., Hagemann, S. G., and F. Robert, 1998: Orogenic
gold deposits: A proposed classification in the context of their crustal distribution and relationship to other
gold deposit types, Ore Geology Reviews, v.13, 1998, pages 7-27
Kerr, A., 2006: Mesothermal gold mineralization in the Silurian Sop’s Arm Group, western
Newfoundland: a descriptive and historical overview. Edited by C. P. G. Pereira and D. G. Walsh,
Government of Newfoundland and Labrador, Department of Natural Resources, Geological Survey, Report
6-1, 2006, pages 61-90, NFLD/2924
Kerr. A., 2006: Silurian rocks of the Sop’s Arm Group, western Newfoundland: some new food for future
digestion, Edited by C. P. G. Pereira and D. G. Walsh, Government of Newfoundland and Labrador,
Department of Natural Resources, Geological Survey, Report 6-1, 2006b, pp.91- 117, NFLD/2924
Knight, I., 2007: Geological studies in the Lomond (NTS 12H/5) and adjacent map areas, of the eastern
part of the Goose Arm Thrust stack, western Newfoundland, in Current Research, NLDNR Department of
Mines and Energy, Geological Survey Report 04-01, pp. 127-156
Lang, J.R., Baker, T., Hart, C.J.R., and Mortensen, J.K., 2000, An Exploration Model for Intrusion
Reated Gold Systems. SEG Newsletter, January 2000, Number 60.
Owen, J.V., 1991: Geology of the Long Range Inlier, Newfoundland. Map 1764A. Scale: 1:250,000. In
Geology of the Long Rang Inlier, Newfoundland, Geological Survey of Canada, Bulletin 395, 89 p.
Owen, J.V., 1986: Geology of the Silver Mountain area, Western Newfoundland (12H/11) Scale: 1:50,000.
Geological Survey of Canada, Open File 1279.
Minett, M., Sandeman, H.A., and D. Wilton, 2010: Regional setting of gold mineralization at the Viking
Property, southern White Bay, Newfoundland, in Current Research, NLDNR Geological Survey Report 101, pp. 51-64
McClay, K. R. 1987: The mapping of geological structures; Geological Society of London handbook.
Milton Keynes, England, Open University Press. 161 p.
National Instrument 43-101: Standards of Disclosure for Mineral Projects, Canadian Securities
Administrators, adopted December 30, 2005, 19 p.
102
Ramsay, J. G., and Huber, M.I., 1983: The techniques of modern structural geology – volume 1: strain
analysis, Academic Press, London.
Rowins S.M., 2009: Geological report on regional structures and mineralization trends at the Viking gold
property, western Newfoundland, NTS Sheets 12H10 & 12H11; unpublished draft report prepared for
Northern Abitibi Mining Corp., 10p.
Thurlow, J.G. and Churchill, R., 2007: Assessment Report on an Airborne Geophysical Survey Covering
Mineral Licences 7897M, 8647M, 10141M, 10727M (Rocky Brook Property); 8878M, 9287M and
10935M (Viking and Wizard Properties); 8193M and Mining Lease 60, Western Newfoundland, NTS
Sheets 12H06, 12H10, 12H11 and 12H15. Mineral assessment report prepared for Altius Resources Inc.,
JNR Resources Inc., Spruce Ridge Resources and Rodger Bidgood. 43 pages. Geofile 012H/1850.
van Staal and Fyffe (1991) van Staal, C.R. and Fyffe, L. R., 1991: Dunnage and Gander zones, New
Brunswick: Canadian Appalachian region; New Brunswick Natural Resources and Energy, Mineral
Resources Division, Geoscience Report 91-2, 39p.
van Staal, C.R., 2007: Pre-Carboniferous Tectonic Evolution and Metallogeny of the Canadian
Appalachians; in Geological Association of Canada Special Publication No. 5, Wayne Goodfellow editor,
p. 793-818
Williams, H., 1979: Appalachian Orogen in Canada; Canadian Journal of Earth Sciences, v. 16, pp. 197208
Williams, H., Coleman-Sadd, S.P., and Swinden, H.S., 1988: Tectonostratigraphic subdivisions of
Central Newfoundland: Geological Survey of Canada, Paper 88-1B, pp. 91-98
103
..
Anaconda
Mining
20.0 Statements of Qualifications
CERTIFICATED.A. Copeland
I, David. A. Copeland, of 6 Falcon Place, St. John's, Newfoundland and Labrador, as an author of the
Technical Report entitled: "NI 43-101 TECHNICAL REPORT AND MINERAL RESOURCE ESTIMATE
FOR THE THOR DEPOSIT, VIKING PROJECT, WHITE BAY AREA, NEWFOUNDLAND AND
LABRADOR, CANADA" dated effective August 29, 2016 (the "Technical Report"), do hereby certify
that:
1)
I am a self-employed geological consultant with an office at 6 Falcon Place, St. John's, Newfoundland
and Labrador.
2)
I am a graduate of the University ofNew Brunswick (B.Sc. Honours Geology- 1995) (M.Sc. Geology
- 1999).
3)
I am a member in good standing ofthe Professional Engineers and Geoscientists ofNewfoundland and
Labrador (Member Number 04257).
4)
I have practiced my profession continuously in Canada and internationally since graduation.
My relevant experience with respect to this project includes extensive professional experience with
respect to geology, mineral deposits and exploration activities in the Province of Newfoundland and
Labrador and elsewhere.
5)
I have read the definition of"qualified person" set out in National Instrument 43-101 and certify that,
by reason ofmy education, relevant experience, and affiliation with a professional association, I meet
the requirements ofa "qualified person" as defined in National Instrument 43-101.
6)
I am responsible for the preparation ofparts of Sections 1 to 13 and 15 to 20 ofthe Technical Report.
7)
I visited the Viking Project on behalfofAnaconda Mining Inc. most recently between August 8th and
15th, 2016.
8)
I have no previous involvement with the property that is the subject of the Technical Report.
9)
As ofthe effective date of the Technical Report, to the best of my knowledge, information and belief,
the portion of the Technical Report for which I am responsible contains all scientific and technical
information that is required to be disclosed to make the portion ofthe Technical Report for which I am
responsible not misleading.
10)
I am independent of Anaconda Mining Inc. as described in section 1.5 of the National Instrument 43101.
11)
I have read National Instrument 43-101 and Form 43-IOIFI, and the Technical Report has been
prepared in compliance with that instrument and form.
JJ:!lJla;;:;
[Sealed]
David A. Copeland, M.Sc., P.Geo.
104
f>...\
A�a.conda
Mining
CERTIFICATES. W. Ebert
I, S.W. Ebert, of 9610 Shad Road, Prince George, British Columbia, as an author of the Technical Report
entitled: "NI 43-101 TECHNICAL REPORT AND MINERAL RESOURCE ESTIMATE FOR THE
THOR DEPOSIT, VIKING PROJECT, WHITE BAY AREA, NEWFOUNDLAND AND LABRADOR,
CANADA" dated effective August 29, 2016 (the "Technical Report"), do hereby certify that:
1)
I am a professional geoscientist providing consulting services to the mining industry with an office
at 9610 Shad Road, Prince George, British Columbia.
2)
I graduated from the University of Alberta in 1991 with a B.Sc. (honours) in geology and from the
University of Western Australia in 1995 with a PhD. in geology.
3)
I am a member in good standing of the Association of Professional Engineers and Geoscientists of
the Province of British Columbia.
4)
I have practiced my profession continuously since 1991. I have had 25 years' experience in ore deposits
and mineral exploration working on a variety of ore deposit types.
5)
I have read the definition of "qualified person" set out in National Instrument 43-101 and certify
that by reason of my education, relevant experience, and affiliation with a professional association,
I meet the requirements of a "qualified person" as defined in National Instrument 43-101.
6)
I am responsible for the preparation of parts of Sections 1 to 13 and 15 to 20 of the Technical
Report. I have visited the property from 2007 to 2011.
7)
I have been responsible for all of the exploration programs conducted on the Viking Property by
Northern Abitibi from 2007 to 2011, and have spent considerable time on the project.
8)
As of the effective date of the Technical Report, to the best of my knowledge, information and
belief, the portion of the Technical Report for which I am responsible contains all scientific and
technical information that is required to be disclosed to make the portion of the Technical Report
for which I am responsible not misleading.
9)
I am independent of Anaconda Mining Inc. as described in section 1.5 of the National Instrument
43-101.
10)
I have read National Instrument 43-101 and Form 43-lOlFl, and the Technical Report has been
prepared in compliance with that instrument and form.
Dated this 29th day of August, 2016 �E'ssir..
i&-o
0�)_,
q PR0;"1CE 1' "'
(
.
____
Dr. S. Ebert Ph.D., P.Geo.
· W. EBERT
#27825
'\.
£
i
�[S�aled]
1
��-<;./
�i1'
105
.f>.,.\
A�a.conda
Mining
CERTIFICATE G.H. Giroux
I, G.H. Giroux, of 982 Broadview Drive, North Vancouver, British Columbia, as an author of the
Technical Report entitled: "NI 43-101 TECHNICAL REPORT AND MINERAL RESOURCE
ESTIMATE FOR THE THOR DEPOSIT, VIKING PROJECT, WHITE BAY AREA,
NEWFOUNDLAND AND LABRADOR, CANADA" dated effective August 29, 2016 (the "Technical
Report"), do hereby certify that:
I am a consulting geological engineer with an office at 982 Broadview Dr., North Vancouver,
1)
British Columbia.
I am a graduate of the University of British Columbia in 1970 with a B.A. Sc. and in 1984 with a
2)
M.A. Sc., both in Geological Engineering.
3)
4)
I am a member in good standing of the Association of Professional Engineers and Geoscientists
of the Province of British Columbia.
I have practiced my profession continuously since 1970. I have had over 40 years' experience
calculating Mineral Resources. I have previously completed resource estimations on a wide variety
of precious metal deposits both in B.C. and around the world, including narrow vein deposits like
6)
Montarde and Efemcukuru.
I have read the definition of "qualified person" set out in National Instrument 43-101 and certify
that by reason of my education, experience, and affiliation with a professional association, I meet
the requirements of a "qualified person" as defined in National Instrument 43-101.
I am responsible for the preparation of Section 14 of the Technical Report. I have not visited the
7)
property.
I have not previously worked on this deposit.
5)
9)
As of the effective date of the Technical Report, to the best of my knowledge, information and
belief, the portion of the Technical Report for which I am responsible contains all scientific and
technical information that is required to be disclosed to make the portion of the Technical Report
for which I am responsible not misleading.
I am independent of Anaconda Mining Inc. as described in section 1.5 of the National Instrument
10)
43-101 and National Instrument 43-101 Companion Policy Section 3.5.
I have read National Instrument 43-101 and Form 43- lOlF l , and the Technical Report has been
8)
106
APPENDIX 1 – LISTING OF DRILL HOLES
Holes intersecting the Thor Trend and used in the Mineral Resource Estimate are highlighted
HOLE
08-VK-01
08-VK-02
08-VK-03
08-VK-04
08-VK-05
08-VK-06
08-VK-07
08-VK-08
08-VK-09
08-VK-10
09-VK-11
09-VK-12
09-VK-13
09-VK-14
09-VK-15
09-VK-16
09-VK-17
09-VK-18
09-VK-19
09-VK-20
09-VK-21
09-VK-22
09-VK-23
09-VK-24
09-VK-25
09-VK-26
09-VK-27
09-VK-28
09-VK-29
09-VK-30
09-VK-31
09-VK-32
09-VK-33
09-VK-34
09-VK-35
09-VK-36
09-VK-37
EASTING
500660.50
500660.48
500659.89
500651.91
500659.89
500653.43
500680.56
500664.46
500661.66
500702.52
500692.89
500693.41
500706.05
500696.53
500695.55
500651.53
500647.26
500648.11
500652.31
500653.21
500622.91
500653.08
500652.63
500646.06
500647.74
500676.10
500653.08
500652.21
500621.49
500645.64
500645.43
500633.71
500574.91
500633.49
500632.89
500632.79
500620.28
NORTHING
5504651.16
5504650.34
5504640.26
5504651.20
5504639.26
5504572.14
5504579.98
5504603.56
5504617.23
5504273.41
5504373.82
5504373.27
5504357.84
5504455.92
5504455.29
5504428.90
5504733.29
5504732.64
5504704.73
5504704.19
5504724.26
5504644.18
5504643.26
5504765.98
5504765.19
5504475.41
5504459.66
5504459.11
5504392.95
5504628.91
5504628.45
5504665.28
5504753.72
5504665.07
5504600.66
5504600.26
5504593.90
107
ELEVATION
440.71
440.69
440.61
442.00
440.61
442.12
434.66
437.36
438.51
376.99
397.66
397.30
388.57
419.35
419.31
424.39
443.04
443.08
442.39
442.31
444.61
441.22
441.07
443.64
443.62
428.47
432.69
432.62
420.55
441.24
441.19
441.32
449.43
441.26
439.14
439.14
439.60
Hole Length (m)
89.50
55.00
40.00
64.50
71.00
58.00
35.00
38.00
67.50
56.50
57.50
67.50
130.50
111.00
211.00
99.00
76.00
59.00
55.00
110.00
61.00
50.00
50.00
63.20
62.00
118.00
70.50
92.00
157.00
56.00
71.00
100.00
245.00
77.00
119.00
122.00
140.00
09-VK-38
09-VK-39
09-VK-40
09-VK-41
09-VK-42
09-VK-43
09-VK-44
09-VK-45
10-VK-100
10-VK-101
10-VK-102
10-VK-103
10-VK-46
10-VK-47
10-VK-48
10-VK-49
10-VK-50
10-VK-51
10-VK-52
10-VK-53
10-VK-54
10-VK-55
10-VK-56
10-VK-57
10-VK-58
10-VK-59
10-VK-60
10-VK-61
10-VK-62
10-VK-63
10-VK-64
10-VK-65
10-VK-66
10-VK-67
10-VK-68
10-VK-69
10-VK-70
10-VK-71
10-VK-72
10-VK-73
10-VK-74
10-VK-75
10-VK-76
500604.96
500611.82
500661.84
500661.25
500657.59
500658.09
500693.94
500640.10
500648.21
500597.96
498232.96
499838.86
500623.24
500560.52
500619.54
500550.61
500673.97
500636.40
500643.91
500583.49
500611.70
500587.17
500586.41
500612.08
500597.85
500584.40
500676.80
500597.39
500669.36
500646.79
500622.45
500596.82
500596.37
500629.82
500578.19
500678.15
500600.38
500655.63
500599.21
500604.42
500703.97
500635.63
500756.48
5504525.47
5504473.80
5504363.29
5504362.73
5504296.82
5504296.82
5504136.26
5504282.09
5504524.79
5504534.39
5503581.24
5504554.88
5504704.53
5504659.01
5504629.37
5504581.48
5504604.63
5504576.91
5504520.18
5504469.24
5504428.55
5504229.52
5504228.39
5504428.13
5504367.29
5504230.75
5504313.70
5504366.75
5504249.59
5504229.91
5504331.02
5504313.52
5504313.10
5504216.36
5504518.06
5504197.77
5504114.37
5504731.09
5504114.93
5504751.98
5504270.16
5504935.35
5503782.38
108
450.08
446.05
401.34
401.65
386.99
386.99
354.73
386.87
446.44
450.27
389.37
478.37
440.71
449.76
442.19
448.51
437.51
442.01
446.83
446.07
432.16
385.27
385.14
432.28
417.54
385.24
387.17
417.47
378.85
373.63
402.19
400.87
400.73
372.81
455.23
364.10
376.65
442.94
376.73
447.29
376.86
444.40
341.57
170.00
98.00
95.00
65.00
96.40
125.00
196.00
137.00
113.00
176.00
257.00
263.00
74.00
200.00
80.00
212.00
47.00
215.00
206.00
272.00
167.00
194.00
269.00
198.00
239.00
98.60
89.00
272.00
161.00
171.90
161.00
197.00
260.00
185.00
278.00
221.00
215.00
170.00
101.40
110.00
161.00
164.00
165.50
10-VK-77
10-VK-78
10-VK-79
10-VK-80
10-VK-81
10-VK-82
10-VK-83
10-VK-84
10-VK-85
10-VK-86
10-VK-87
10-VK-88
10-VK-89
10-VK-90
10-VK-91
10-VK-91A
10-VK-92
10-VK-93
10-VK-94
10-VK-95
10-VK-96
10-VK-97
10-VK-98
10-VK-99
11-VK-104
11-VK-105
11-VK-106
11-VK-107
11-VK-108
11-VK-109
11-VK-110
11-VK-111
11-VK-112
11-VK-113
11-VK-114
11-VK-115
11-VK-116
11-VK-117
11-VK-118
11-VK-119
11-VK-120
11-VK-121
11-VK-122
500635.63
500756.48
500613.74
500774.58
500661.69
500668.54
500661.69
500668.54
500661.69
500581.12
500327.79
498410.45
500504.21
498420.57
500580.15
500581.15
498097.20
498096.57
500591.50
498066.86
500619.81
498025.42
500842.19
498025.42
500647.08
500586.25
500625.87
500574.96
500613.42
500613.60
500599.23
500573.65
500622.21
500600.52
500571.40
500590.86
500589.82
500593.36
500680.07
500640.55
500565.67
500566.20
500532.93
5504935.35
5503782.38
5505005.72
5503737.38
5504407.28
5504217.11
5504407.28
5504217.11
5504407.28
5504605.91
5504229.55
5503977.56
5504607.32
5503976.96
5504730.23
5504731.23
5503766.35
5503765.58
5504844.34
5503715.51
5504859.49
5503676.34
5504809.71
5503676.34
5504589.71
5504569.39
5504533.87
5504492.86
5504524.00
5504614.54
5504653.40
5504695.25
5504679.63
5504724.37
5504750.02
5504769.36
5504447.09
5504313.20
5504285.27
5504258.02
5504428.85
5504628.49
5504787.46
109
444.40
341.57
442.73
334.53
415.50
367.66
415.50
367.66
415.50
443.83
428.81
383.00
454.37
383.31
447.76
447.76
384.88
384.90
442.77
384.86
438.06
383.13
409.46
383.13
440.00
444.18
447.19
457.17
448.93
440.83
442.57
447.57
440.31
446.12
449.57
447.83
442.84
400.58
385.42
385.11
442.33
447.46
449.36
209.00
191.00
176.00
146.00
65.00
52.00
88.10
93.00
104.00
206.00
110.00
140.00
261.50
146.00
50.00
146.00
125.00
137.00
168.50
152.00
128.00
154.30
193.00
130.00
94.00
232.00
169.00
282.00
225.00
195.00
165.00
237.00
153.00
191.00
141.00
132.00
285.00
260.00
118.00
202.00
318.00
201.00
207.00
11-VK-123
11-VK-124
11-VK-125
11-VK-126
11-VK-127
11-VK-128
500553.12
498581.96
498624.28
498712.20
499921.07
500419.92
5504732.27
5504057.85
5504033.01
5504091.67
5504577.35
5504252.92
110
449.46
396.62
394.65
405.27
481.44
415.18
204.00
58.20
122.00
119.00
197.00
191.00
APPENDIX 2 – SEMIVARIOGRAMS
for
High Grade Indicator
Low Grade Gold
111
112
113
114
115
116
117
APPENDIX C – CONSENT OF QUALIFIED PERSONS
118

NI 43-101 TECHNICAL REPORT AND MINERAL RESOURCE

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