Geological, Geophysical Report
Transcription
Geological, Geophysical Report
Technical Report on the Geology of the Klein Aub, Group of Prospecting Licenses Republic of Namibia, Southern Africa 24º 54’ South Latitude, 16º 33’ East Longitude Rehoboth District, Hardap Region For: MIDNIGHT SUN MINING CORP. 910-475 HOWE STREET VANCOUVER, B.C. V6B 2B3 By: WARREN ROBB P.GEO. 21968 127 Avenue Maple Ridge, BC V2X 4P5 October 15, 2011 ________________________________________________________________________ 2. Table of Contents TECHNICAL REPORT ON THE GEOLOGY OF THE KLEIN AUB, GROUP OF PROSPECTING LICENSES................................................................. 1 2. TABLE OF CONTENTS ............................................................................ I 2.1 List of Tables...................................................................................................... ii 2.2 List of Figures .................................................................................................... ii 3. SUMMARY ............................................................................................. 1 4. INTRODUCTION ................................................................................... 2 5. RELIANCE ON OTHER EXPERTS .......................................................... 3 6. PROPERTY DESCRIPTION AND LOCATION .......................................... 5 7. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ........................................... 9 8. HISTORY ............................................................................................. 10 9. GEOLOGICAL SETTING AND MINERALIZATION ................................. 18 9.1 Regional Geology .............................................................................................. 18 9.2 Property Geology .............................................................................................. 21 9.3 Mineralization ................................................................................................. 24 10. DEPOSIT TYPES .................................................................................. 28 11. EXPLORATION ................................................................................... 28 12. SAMPLE PREPARATION, ANALYSES AND SECURITY ......................... 31 13. DATA VERIFICATION ......................................................................... 32 14. ADJACENT PROPERTIES .................................................................... 33 15. MINERAL PROCESSING AND METALLURGICAL TESTING ................. 33 16. MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ............ 34 17. OTHER RELEVANT DATA AND INFORMATION .................................. 34 18. INTERPRETATION AND CONCLUSIONS ............................................. 34 18.1 CONCLUSIONS .................................................................................... 35 19. RECOMMENDATIONS ........................................................................ 35 phase One – Budget ....................................................................................................35 phase Two – Budget .................................................................................................... 36 20. REFERENCES ..................................................................................... 36 Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page i ________________________________________________________________________ 21. DATE .................................................................................................. 40 21.1 Signiture page and date: .................................................................................. 40 21.2 Certificate of Qualified Person: ........................................................................ 41 APPENDIX I ................................................................................................. 43 PERMIT DETAILS......................................................................................... 43 APPENDIX II ................................................................................................ 44 2.1 LIST OF TABLES Table 1. Klein Aub Licenses Coordinates................................................................................. 6 Table 2. Klein Aub Mine Production ...................................................................................... 11 Table 3. Rock Samples ........................................................................................................... 33 2.2 LIST OF FIGURES Figure 1. LOCATION MAP ....................................................................................................... 4 Figure 2. License Map ...............................................................................................................7 Figure 3 Klein Aub MIne ......................................................................................................... 13 Figure 4 Barite vein ................................................................................................................. 17 Figure 5 Regional Geology Map ............................................................................................. 20 Figure 6 South African Copper Belts ....................................................................................... 21 Figure 7 Property Geology map .............................................................................................. 22 Figure 8 Sample Locations ..................................................................................................... 30 Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page ii ________________________________________________________________________ 3. Summary Midnight Sun Mining Corp. (“MMA”) has entered into an option agreement with Logwood Investments (Pty) Ltd. (“Logwood”) whereby it can earn up to a sixty percent (60%) interest in the Klein Aub Group of Prospecting Licenses centrally located in the Republic of Namibia in Southern Africa. The Klein Aub Group consists of 3 Exclusive Prospecting Licenses EPL 3663, EPL 3501, and EPL3760 which cover an area of 99,974.90 hectares and registered in the name of Logwood. EPL 3663 hosts the workings of the Klein Aub Copper mine which between 1966 and 1987 processed 5,128,518 tonnes of mineralized rock and recovered copper concentrates totaling 211,293 tonnes. Two phases of mineralisation exist in the Klein Aub Formation a strataform type consisting of disseminated sulphides in silicified, chloritic mudstone, and a cross – cutting type represented by fillings of brittle fractures related to the remobilisation during Damaran deformation and metamorphic events. Surface mineralization consists of copper oxide mineral primarily malachite azurite. The Kline Aub formation which hosted the mineralization extends from the Kline Aub mine site some 15.5 kilometers to the west across EPL 3501 to the northeast corner of EPL 3760. Trenching has exposed copper mineralization occurring primarily as malachite and azurite along strike of the formation and was confirmed by check samples taken by the author. To the south similar style mineralization was observed in trenches at farm Blaubeker suggesting that a similar mineralizing event may be present there. The exploration data supplied by Logwood is primarily regional in nature, this is due impart to size of the EPLs. The geophysical data sets are useful in identifying various stratagraphic and structural components and will be useful in defining areas for ground follow-up. Based on a thorough review of the existing data and a property visit where samples were taken, it is the author’s professional opinion that the Kline Aub Group of EPL’s constitutes a property of merit with the appropriate geological characteristics to potentially host economic concentrations of copper-silver mineralization. In order to advance the property a $1,400,000.00 Can Phase One exploration program is recommended. Phase One would consist of a thorough and detailed search of Geological arMidnight Sun Namibia Project 43-101 OCT 15, 2011 Page 1 ________________________________________________________________________ chives and of past operators and or employees of the Klein Aub mine for available data. This would be supplemented by a full compilation of all data pertaining to EPLs 3663, 3501 and 3760. All data would be input into a suitable digital database. Concurrent with the compilation and data entry, a program of surficial geological mapping and prospecting at a scale of 1:10,000 along the Strike of the Klein Aub Formation west of the West Shaft to the western boundaries of EPL’s 3501 and 3760 would be conducted. Concurrent with this ground work a combination soil geochemical and ground geophysical surveys should be undertaken to infill gaps between surface outcrops. This Phase one program should culminate with 5000 meters of diamond drilling to first of all test the potential of the remaining mineralization of the Vliegveld zone at the Kline Aub Mine, and secondly to test the new targets identified by the ground work. Contingent on positive results from Phase One, a Phase Two program consisting of 10,000 meters of diamond or Reverse Circulation drilling would be recommended. This Phase Two program would be estimated at $2,500,000. 4. Introduction This Technical report was commissioned by Midnight Sun Mining Corp. to summarize the geology, mineralization and exploration potential of the Klein Aub group of Exploration Permits located in the Republic of Namibia in Southern Africa (Figure 1), and to recommend a suitable exploration program to test and expand identified copper targets. The author, Mr. Warren Robb P.Geo. of Maple Ridge B.C., was retained by the Directors of Midnight Sun to complete this technical report which has been prepared in conformity with guidelines presented in National Instrument 43-101 and companion documents. The information contained in this report was taken primarily from data, reports and maps supplied by Logwood Investment (Pty) Ltd. The author visited the Namibian Geological Survey in Windhoek to review past exploration reports but was unable to locate the actual reports as they either did not exist or had been lost and thus had to rely on government annual reports and some archived company reports for the majority of the historical data. The author conducted a personal inspection of the properties between August 24 and August 29, 2011 and was accompanied with Mr. Robert Sibthorpe, a director of Midnight Sun, and Mr.’s. Tom and Kevin Ye of Logwood Investments (PTY) Ltd. Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 2 ________________________________________________________________________ 5. RELIANCE ON OTHER EXPERTS This report has been prepared by Warren Robb P. Geo. for Midnight Sun Mining Corp. The information, opinions and conclusions contained herein are based on information available to the author at the time of preparation of this report, assumptions, conditions and qualifications as set forth in this report and data, reports, and other information supplied by Logwood In- vestments (PTY) Ltd and other third party sources. For the purpose of the report the author has relied on ownership information provided by Logwood Investment (Pty) Inc. For the purpose of the option agreement the author is relying on information provided by Midnight Sun Mining Corp. Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 3 Figure 1: Location Map ________________________________________________________________________ 6. Property Description and Location The Klein Aub Group consists of 3 Exclusive Prospecting Licenses (EPL’s”) which encompass an area of 99,974.90 hectares in the Rehoboth District, Hardap Region in the Republic of Namibia in southern Africa see figure 1. The property is centered at approximately 24º54’ south Lati- tude, 16º33’ East Longitude or UTM coordinates 7353638 mS 659110 mE WGS 84 Zone 33. The three contiguous EPL’s which comprise the Klein Aub Group are registered as EPL3663 (20,000 hectares), EPL 3501 (19,974.9 hectares) and EPL 3760 (60,000 hectares) were originally acquired by Risk Based Solutions or its principle Dr. Sindila Mwiya in 2006 and 2007 and were then transferred to Logwood Investment (Pty) Inc. in September 2009. The EPL’s form an irregular shaped boundary whose corner locations is shown in Table 1 and is displayed in Figure 2. Within the Republic of Namibia the government holds all mineral rights. Mineral exploration and development is controlled by the 1992 Minerals (Prospecting and Mining) Act, which is administered by the Ministry of Mines and Energy. The holder of an EPL, is required to carry on within a particular period in accordance with the work program, prospecting operation or to expend certain expenditures and shall furnish the Commissioner with the particulars of the prospecting operations, either operation or expenditure. The EPL is granted for a period not exceeding 3 years and may be renewed for a further period not exceeding 2 years at a time. The EPL cannot be renewed on more than two occasions unless the Minister deems it desirable in the interest of the development of mineral resources of Namibia that such license be renewed in any particular case on a third or subsequent occasion. At present EPL’s 3663, 3670 are in there first 2 year extension, and due to expire on April 16, 2012 and August 28, 2012 respectively. A second renewal request must be submitted no later than 3 months prior to the expiration date. Application has been made with the NaMidnight Sun Namibia Project 43-101 OCT 15, 2011 Page 5 ________________________________________________________________________ mibian Ministry of Mines and Energy for the second 2 year extension on EPL 3501, that was due to expire on August 7, 2011 the extension to EPL 3501 is pending. (see appendix) Table 1. KLEIN AUB PERMIT COORDINATES LICENSE Corner number Latitude (South) Longitude (East) EPL-3663 1 23.75876225 16.57086350 2 23.77158507 13.68964140 3 23.83470216 16.67250015 4 23.91564090 16.67432629 5 23.93239704 16.59495355 6 23.92102588 16.56325778 7 23.82829680 16.56942175 1 23.73726616 16.41632582 2 23.73539505 16.57137254 3 23.82889680 16.56942175 4 23.83097494 13.50469579 5 23.81804697 16.41120591 6 23.82746087 16.39897521 7 23.81980179 16.36350252 8 23.75916463 16.36829115 1 23.82829680 16.56942175 EPL- 3760 2 23.92102588 16.56325778 EPL- 3760 3 23.93239704 16.59495355 4 23.10193643 16.49872367 5 23.09503520 16.34789248 6 23.99309412 16.31673829 7 23.82133130 16.43776541 8 23.83151641 16.50500275 EPL-3663 EPL-3663 EPL-3663 EPL-3663 EPL-3663 EPL-3663 EPL-3501 EPL-3501 EPL-3501 EPL-3501 EPL-3501 EPL-3501 EPL-3501 EPL-3501 EPL- 3760 EPL- 3760 EPL- 3760 EPL- 3760 EPL- 3760 EPL- 3760 Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 6 Midnight Sun License Boundary Midnight Sun License Map Klein Aub Project Figure 2 ________________________________________________________________________ Logwood Investments has made application to the Ministry of Mines and energy for a Mining License (“ML”) noted as ML 165 this license is currently pending. This license would be valid for 25 years with the possibility of renewal for an additional 15 years. Midnight Sun has entered into an option agreement on July 28, 2011 with Logwood Investment (Pty) Inc. where by Midnight Sun can earn up to a 60 % interest in the Klein Aub Group EPL’s. In order to earn its interest Midnight Sun must make the following minimum work expenditures a) $1,350,000 before 18 months of the effective date; b) Spend a further $1,700,000 (for a cumulative 3,050,000) before 36 months of the Effective Date c) A further 1,950,000 (for a cumulative $5,000,000) before 48 months of the effective date In addition the Midnight Sun must issue common shares to Logwood in the amounts as follows; a) 1,000,000 Midnight Sun shares upon assignment or transfer by Midnight Sun of its rights under the option agreement b) 3,000,000 shares on or before 18 months of the Effective Date c) 6,000,000 shares on or before 36 months of the Effective date To the best of the author’s knowledge the EPL’s have not been legally surveyed To the best of the author’s knowledge there are no royalties, back in rights, payments or any other agreements or encumbrances associated with the Klein Aub Group of Exclusive Prospecting licenses. EPL 3663 contains approximately 5 million tonnes of mine tailings located just east of the village of Klein Aub. The tailings could pose an environmental hazard to the population from winds carrying particulates, or a hazard to livestock from falling into caverns that have formed in the tailings pile. Logwood has received approval for exploration on the properties from the Ministry of Environment of Namibia. No additional permitting is required to conduct exploration on the prospecting licenses at this time. Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 8 ________________________________________________________________________ 7. Accessibility, Climate, Local Resources, Infrastructure and Physiography The Klein Aub Group is situated in central Namibia approximately 180 kilometres from the capital city of Windhoek. The morphology of the area is characterised by flat alluvial plains that are interrupted by rugged ridges and peaks with elevations that vary from 1480 m ASL on the plain to and 1721 m ASL on the peaks. Vegetation consists of grasses low shrub and small trees. Namibia is serviced by an international Airport located at Windhoek with daily flights to Europe and South Africa. Regionally, the Trans-Caprivi Highway a paved all weather road linking Walvis Bay to the countries of Botswana, Zambia and Zimbabwe, as well as the Democratic Republic of Congo. The Trans-Kalahari Highway links Walvis Bay with South Africa’s Gauteng industrial heartland via Botswana. The Klein Aub Group can be accessed by travelling south 90 kilometres from Windhoek along the paved two lane National Highway B1 to the town of Rehoboth, then travelling west along the secondary gravel road designated C24, 90 kilometres to the village of Klein Aub. Access within Klein Aub Group project area is through a network of 4 x 4 trails with various access points along the C24 in and around the village of Klein Aub. The village of Klein Aub has a resident population of approximately 1000 and is serviced with electrical power but has limited suppliers. The main activity in the area is ranching with herds of cattle, goats and sheep grazing for local consumption and for export. Fuel and equipment is readily available at the town of Rehoboth 90 kilometres to the northeast. The climate of the area is best term semiarid with daytime temperatures that range between 35° to 45° C from October to March, the hottest months, and can drop below freezing between June and August. The average annual rainfall of the area is around 150 mm. Winter months may be characterised by the highest frequency of these north-eastern winds. Due to lack of data, the frequency of high-energy gusts could not be determined and local variability is likely to occur. Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 9 ________________________________________________________________________ The Klein Aub permit has sufficient surface rights that should an economic mineral deposit be defined there is adequate area for potential tailings storage areas, waste disposal, heap leach pads if required and processing facilities. Water would need to trucked to the site for the purpose of drilling while the flooded workings of the closed Klein Aub mine could act as a reservoir. Mining personnel could be sourced from the village of Klein Aub or from the city of Rehoboth. 8. History The information in the history section is taken from the Mineral Resources of Namibia by Schneider and Seeger, (1992), in which, descriptions of the previous copper exploration activities around Klein Aub is described. EPL 3663 The occurrence of copper on the farm Klein Aub 350 was first recorded by Rimann (1915). In 1027 the mineralized zone was explored by test pits and a 10 meter inclined shaft under the direction of Dr. Hans Merensky was driven but returned disappointing results. By the late 1950’s most of the strike of the copper bearing horizon has been located. Mr Giep Booysen staked most of the strike length and optioned the property to Tsumeb Corporation Ltd. The property saw intensive drilling between 1959 and 1960 by Tsumeb Corporation Ltd., which then dropped its option on the property. The property was then purchased by Marine Products Limited a subsidiary of Federale Volksbeleggings bpk. In 1966 the Klein Aub property was brought into production by General Mining/Federale Volksbeleggings who operated the mine until 1985, the mine was then operated by the Klein Aub Copper Company a subsidiary of Metorex. The Mine operated until 1987 when it was closed due to low grade and depressed metal market prices, a production summary is shown in table 2. Between 1966 and 1987 the mine processed 5,128,518 tonnes and recovered Copper concentrates totaling 211,293 tonnes see figure 3. The mine did produce silver but the author was unable to obtain records specifying the total amount of silver produced. The historic literature made many references to exploration drilling but the author was unable to find any records or drill logs. Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 10 ________________________________________________________________________ Table 2. Klein Aub Mine Production Production of copper concentrates (4556% copper, 700-1100 g/t silver) of the Klein Aub Mine (Source: Directorate of Mines Namibia) Year 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 Totals Ore mined (tonnes) 41 138 186 519 250 787 258 315 225 037 222 353 179 193 163 769 234 282 253 839 289 334 279 650 310 329 318 400 321 549 306 200 294 600 259 400 249 357 214 120 230 000 38 347 5,128,518 Cu-concentrate (tonnes) 460 7 428 9 983 10 965 8 926 9 590 7 617 6 460 9 575 8 674 12 441 12 025 13 389 13 576 16 405 14 155 11 464 10 043 9 917 10 064 7 501 1 265 211,293 Between 1989 and 1990 the Erongo Mining and Exploration Company conducted a 63 hole 622 meter drill program over the mine tailings at Klein Aub in an attempt to determine the grade of copper and silver still contained in the tailings and if the material could be retreated by acid leaching. The holes were spaced at 70 meter centers over the tailings pile. Sampling was conducted over 1.5 metre runs and analysised individually and then composited. The composites were then compared and a computed average was calculated at 0.23% copper, 8.6 g/t silver. Erongo conducted several leaching tests on tailings material, using diluted (5%) sulphuric acid and 2% KCN solution (Simmonds 1990). Despite a recovery of 78.3% of contained copper over a 24 hour period under agitation an exceptionally Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 11 ________________________________________________________________________ high rate of acid consumption was recorded varying from 78 to 206 kg H 2 SO 4 (conc.) to one tonne tailings. This was due to the high carbonate content in the material. Thus, reprocessing of the tailings was abandoned. It was noted that a KCN solution recovered 75% of the copper and 90.5% of the silver. In 2003 Joubert (2003) supported by the Centre for Development of Enterprise and the Minerals Development Fund carried out a testing programme of the Klein Aub tailings with the objective to pre-concentrate the material by gravity separation and subsequently to leach it. The Namibian Small Miners Assistance Centre was the promoter of the project. The tailings dump was subdivided into 8 major abutments, A to H. Sixty four auger holes were drilled down to a depth of 2 m. A total of 128 one-metre samples were collected and analysed for copper. Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 12 ________________________________________________________________________ Mineralized body Remaining mineralization Klein Aub ore body showing the W360 and W60 boreholes that were drilled as part of the previous mining exploration activities (after Borg, 1987) FIGURE 3 KLEIN AUB MINE Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 13 ________________________________________________________________________ EPL 3501 Rimann (1915) noted the presence of gold on farm Auchas 347, 80 km southwest of Rehoboth. A more detailed report by De Kock (1934) described the Auchas geology as an anastomosing quartz vein stockwork with copper mineralisation. Average gold values are given as 0.6 g/t gold, but restricted secondary enrichment yielded results of up to 41 g/t gold (De Kock, 1934). Söhnge (1961) reported that copper mineralisation and minor gold were associated with narrow chloritic schist lenses, each a few metres in length, and with branching quartz veins up to 2 m wide. Subsequent exploration was undertaken by Rand Mines (Snowdowne, 1964) and Kappa Mining (1974). Along the Kam River near the settlement on the eastern portion of the farm Nuwedam 348, a geochemical survey delineated two zones of sporadic malachite in conglomerate of the Eindpaal Member which underlies the Kagas Member of the Klein Aub Formation. Erongo Mining and Exploration Company Ltd. continued exploring for copper by checking the geochemical anomalies by way of ten inclined wagon drill holes totalling 216 m to test the copper-bearing zone exposed in five trenches north of the Nuwedam settlement. No borehole logs have been found to date. No significant assays were reported except for one borehole, where 0.8 to 1.0% copper was intersected between 4.5 and 9.1 m (Worst, 1970). Channel samples from the trenches were assayed and returned values that ranged from trace to 0.9% copper, and in a number of trenches that contained visible mineralization returned values of up to 2% copper. In 1969 a barite deposit on the farm Auchas 347, some 15 km due west of the Klein Aub Copper Mine within the EPL 3501, was investigated in considerable detail. The barite fills an irregular fracture in Piksteel granodiorite striking east-west for some 265 m. The vein ranges in width from 1 to 6 m on surface and dips at 80° to the north. Partly covered by surficial deposits, the barite in places exhibits distinct banding parallel to the contact and contains granodiorite inclusions. Several apophyses of barite extend into granodioritic wall rock. The barite vein was prospected by several shallow trenches which revealed an average width of 4.9 m and a grade of 48.5% BaSO 4 (Fig. 3.10). The continuity of the mineralisation at depth Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 14 ________________________________________________________________________ was tested by 49 short inclined wagon drill holes and 5 inclined diamond drill holes figure 4. The latter intersected the mineralized body at a vertical depth of approximately 50 m. EPL 3670 Within the EPL 3670 and in the eastern portion of the farm Blaubeker 488, there are several outcrops of cupriferous argillite at various levels of the succession that have been drilled. One of these is situated at a hill north of the homestead, where an interbedded zone of argillite, siltstone and fine-grained quartzite occurs near the base of the conglomerate. This shaley unit is about 5 to 10 m thick, has a strike length of several hundred metres, and shows considerable malachite staining in outcrop. Copper is confined to shaley quartzite bands up to 35 cm thick and exposed in a number of trenches in the eastern and northeastern parts of the farm. Malachite and azurite mainly present along bedding planes, also occur sporadically in cross-cutting narrow quartz veins. The northeastern showings were opened up over a strike distance of 170 m, and channel samples from four of the trenches assayed as follows: 0.31% copper over 1 m (2.0 g/t silver), 0.17% copper over 4.25 m (5.8 g/t silver), 1.1% copper over 2.5 m (3.6 g/t silver). The eastern occurrence was tested by four diamond drill holes. The cupriferous zone was penetrated at depths ranging between 13.1 and 59.3 m. The results vary between 37 ppm and 440 ppm copper, while a maximum silver content of 1 g/t is recorded (Van Wyk, 1970). Copper occurrences outside the Naukluft Nappe Complex have been reported in literature. Disseminated malachite, azurite and chrysocolla with grains of chalcocite in greyish-brown quartzite of the Kagas Member are present near the contact of the Klein Aub Formation with the Nama Group in the northwestern portion of the farm Lepel 339. The mineralisation is confined to a north-northeast trending fault. Copper has been reported from several localities within the upper allochthon of the Naukluft Nappe Complex. This unit comprises in ascending order the Dassie, Zebra, Pavian and Kudu Nappes with rocks of the Damara Sequence and is underlain by the lower Rietoog Nappe with rocks of the Nama Group. The individual thrust plates are made up of folded shales, quartzites, conglomerates, limestones and dolomites (Geological Survey, 1992). Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 15 ________________________________________________________________________ Since 1969 various copper occurrences have been investigated. The mineralisation in the limestone and shale of the Dassie Nappe is thought to be syngenetic, whereas that associated with crosscutting quartz veins probably occurred during tectonism when copper was redistributed along fractures and breccia zones (Geological Survey, 1992). Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 16 ________________________________________________________________________ FIGURE 4 BARITE VEIN Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 17 ________________________________________________________________________ 9. Geological Setting and Mineralization 9.1 REGIONAL GEOLOGY The geology of the region is dominated by Neoproterozoic (1300Ma – 900Ma) basins of the Sinclair Sequence and their equivalents which occur as relatively narrow, discontinuous, fault-bounded troughs which trend from southern, central and eastern Namibia over 800 kilometres into the northern part of Botswana figure 5. The troughs are volcano sedimentary basins aligned along the western, north-western and northern margin of the Kalahari Craton in areas of Koras in South Africa, Sinclair, Klein Aub, and Witvlei in Namibia and Ghanzi, Goha and Shinamba located in Botswana (Ruxton, 1986). These basins share similar features such as low metamorphic grade and a moderate degree of deformationand are often termed the Kalihari Copperbelt figure 6. The plate tectonic settings of the basins has been extensively interpreted during the last 3 decades resulting in various possible tectonic settings being proposed such as a magmatic arc (Watters,1974), an auclogen (Kröner,1977) and as a continental rift in extensional crust regime (Porada, 1985, Borg, 1995). A continental rift is supported by the bimodal volcanism with thoelitic affinity, thick coarse grained clastic red bed successions and extensional tectonism which can be found in all basins (Borg, 1995). The Klein Aub Formation that form part of the Sinclair sequence is an intercratonic basin along a zone of crustal weakness that developed between the Kalahari Craton and Congo Craton (Borg et al, 1995). Within the Klein Aub Formation the Kagas Member which hosts the mineralization is interpreted to be equivalent to the “Ore Shale” within the Zambain Copper belt. The Sinclair Sequence is bordered by the Damara Orogenic Belt in the north. Individual rift basins such as the Klein Aub basin developed from an initial rift phase of crustal extension and bimodal volcanism through a phase of continuous block faulting, erosion of graben structures and continental sedimentation of the red beds that was preceded by a phase of thermal subsidence with marine or lacustrine environments overstepping the shoulders of the initial rifts (Borg et al., 1996) Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 18 ________________________________________________________________________ The similarity shared by the basins is also evident in their metallurgy as they all share a pattern of the abundance of stratbound copper-silver mineralization in clastic sedimentary rocks and numerously in volcanic rocks as well as the lack of other mineral occurrences. Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 19 550000 mE 600000 mE 650000 mE 700000 mE 800000 mE 750000 mE Uis Uis Steinhausen Steinhausen 7550000 mN 7500000 mN Okahandja Okahandja 7500000 mN Windhoek Windhoek Swakopmund Swakopmund 7450000 mN 7450000 mN Karibib Karibib 7550000 mN Usakos Usakos 7600000 mN Omaruru Omaruru 7600000 mN 7650000 mN 500000 mE 7650000 mN 450000 mE Walvis Walvis Bay Bay Midnight Sun Sun Midnight License Boundary Boundary License Legend Kalkrand Kalkrand 7350000 mN 7350000 mN 7400000 mN 7400000 mN Rehoboth Rehoboth Tertiary phonolite Cretaceous basalt;minor quartz latite Etendeka Mariental Mariental 7300000 mN 7300000 mN Tertiary to Quaternary alluvium;sand;gravel;calcrete;dunes Jurassic to Cretaceous dolerite 7250000 mN Maltahohe Maltahohe Carboniferous to Jurassic mudstone;siltstone;sandstone;grit;conglomerate;tillite 7250000 mN Jurassic basalt Cambrian Damara / Kuboos-Bremen Intrusives 7200000 mN Late Namibian green/red shale/sandstone;black limestone;conglomerate Nama Midnight Sun Mokolian rhyolite;basalt;amphibolite;phyllite;limestone;gneiss 7200000 mN Gibeon Gibeon Namibian quartzite;conglomerate;schist;marble Nosib Regional Geology Map Date:13/10/2011 7150000 mN Office: Figure 5 Drawing: main_road Scale: 1:2,000,000 Projection: UTM Zone 33, Southern Hemisphere (WGS 84) main_rivers 20 0 20 40 7150000 mN Vaalian anorthosite;dunite;gabbro;norite;syenite;foyaite Klein Aub Project Author: kilometres 500000 mE 550000 mE 600000 mE 650000 mE 700000 mE 750000 mE 800000 mE 7 450000 mE 640000 mE 650000 mE 660000 mE 670000 mE 680000 mE 7370000 mN Auchas Auchas Mine Mine Auchas Auchas Gold Gold (MM) (MM) 7370000 mN Auchas Auchas Copper Copper (MM) (MM) Klein Klein Aub Aub Auchas Auchas Barite Barite Klein Klein Aub Aub Mine Mine 7360000 mN 7360000 mN Nuwedam Nuwedam 348 348 Kuburuchab Kuburuchab 520 520 (MM) (MM) Garies Garies Oos Oos 489 489 (MM) (MM) Blaubeker Blaubeker 488 488 Blaubeker Blaubeker Copper Copper Garies Garies Oos Oos 489 489 Midnight Midnight Sun Sun License License Boundary Boundary 7350000 mN Garies Garies Wes Wes 492 492 Klein Aub Project Legend Karpfenkliff Formation conglomerate Weissrand Formation conglomerate; grit Bloedrivier Bloedrivier 491 491 (MM) (MM) 7350000 mN Ebenhout Ebenhout 487 487 Nama Group tillite; boulder shale; shale Damara Group Granites Blaubeker Formation Schist Kambes Kambes 498 498 Tsabisis Tsabisis 340 340 Sinclair Sequence conglomerate; quartzite (red); rhyolitic pyroclastics/tuffite; metavolcanics (mafic) Mokolian Midnight Sun Property Geology Map Spitskop Spitskop Suidwes Suidwes 500 500 Mineral Occurrence Date:13/10/2011 Klein Aub Project Rivers Figure 7 Road Author: Office: Drawing: Mainroad Scale: 1:200,000 Projection: UTM Zone 33, Southern Hemisphere (WGS 84) 2 0 2 4 Midnight Sun License Boundary kilometres 640000 mE 650000 mE 660000 mE 670000 mE 680000 mE 7340000 mN 7340000 mN dolomite; shale; volcaniclastic; sandstone; limestone-dolomite breccia Namibian ________________________________________________________________________ Doornpoort Formation comprises of continental, partly evaporitic red beds with intercalated subaerialy extruded basic volcanic rocks. The overlying Klein Aub Formation forms a belt of continuous outcrop extending over a strike length of about 90km from farm Lepel 339 in the west to the farm Kareeboomkolk 424 in the east. It comprised of dark grey pyritic finely laminated sandstone, siltstone and quartzite, sub ordinate limestone and arkose (Borg, 1988b). The rocks dip at moderate angles to the south and have been deformed into several open folds. This formation has attracted considerable interest over the past years since the discovery of copper within the Formation. The Formation is overlain by oxidised arkosic quartzites which are regarded as being equivalent to the Kamtsas Formation of the Damara Sequence (Schalk, 1970). The prominent parallel – bedding fault in the Klein Aub Formation has dragged and fractured the rocks within the formation and controls the shape, size and grade of the mineralized bodies at the Klein Aub mine and surrounding areas. The northern and western part of the Kline Aub Group is underlain by basement rocks termed Rehoboth basement inlier. It consists of rocks of the Elim Formation (Rehoboth Sequence), the Piksteel Granodiorite and the Kobos Granite. The basement is overlain by Mesoproterozoic rocks of the Sinclair Sequence. The Nückopf and Grauwater Formations form the lower part of the Sequence and consist mainly of rhyolithic volcanic rocks and subordinate conglomerate, quartzite and minor basalt (Borg, 1995; Borg and Stanistreet, 1996) The Doornpoort and Klein Aub Formations form the upper part and are composed of continental, partly evaporitic red beds with intercalated tholeiitic basalt, which are overlain by fine clastic sedimentary rocks and minor carbonate (Kagas and Dikdoorn Members). The southwestern and southern portions of the Klein Aub Group (EPL 3760) belong to the Naukluft Mountains. They are composed of three main geological units, the basement rocks of the Mesoproterozoic Rehoboth and Sinclair Sequences, sediments of the Neoproterozoic to Cambrian Nama Group and nappes of the Naukluft Nappe Complex. The basement is found mainly on the western and northern side of the mountains, and consists of meta- Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 23 ________________________________________________________________________ sedimentary and meta-volcanic rocks, gneisses and granites, varying in age between 1800 and 1000 Ma. 9.3 MINERALIZATION Two phases of mineralisation exist in the Klein Aub Formation a stratiform type consisting of disseminated sulphides in the silicified, chloritic mudstone, and a cross – cutting type represented by fillings of brittle fractures related to the remobilisation during Damaran deformation and metamorphic events. Copper mineralization is essentially confined to green argillite and to a lesser extent to lenses of green quartzite and shaley limestone within the Kagas Beds. The argillite or mineralised rocks consist of interbedded calcite quartzite, interlaminated siltstone/mudstone, silicified chloritic mudstone, thin chloritic layers and rare layers of calcite nodules. The permeability of the sedimentary features and tectonic features are controlling factors for the distribution of mineralization within the chalcocite bands of the Klein Aub mine. Copper mineralization is also hosted by both basalts predominantly of the Doornpoort Formation and pyritic green mudstone and siltstone of the Klein Aub Formation. The basalts of the Doornpoort Formation are generally altered and copper depleted but locally hosts small amounts of native copper and cuprite in and adjacent to amygdales and quartz veins (Borg, 1995). In the Klein Aub Formation copper anomalies occur as laterally extensive anomalies which follow the stratigraphic redox contact between continental red beds and overlying pyritic sedimentary rocks. The disseminated mineralization at the Klein Aub mine accounts for 55% of the total mineralization. The occurrence is over a strike length of 7.5km and units in the mineralized zone is concentrated are intercalated in a stratigraphic succession of nearly 100m and range in thickness from cm – meters. The units dip southwards at approximately 450. The remaining 45% is hosted by fractures such as breccia zones and cleavage planes. Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 24 ________________________________________________________________________ Chalcocite is the most abundant Cu mineral in the Klein Aub mineralization and accounts for more than 85% of the total Cu sulphides. Minor Cu minerals are bornite and chalcopyrite occurring as a narrow fringe zone that encloses the chalcocite mineralization. A list of the economic minerals observed at the Klein Aub mine in order of decreasing abundance are as follows: Chalcocite, Djurleite, Digenite, Hematite, Bornite, Chalcopyrite, Pyrite, Covellite, Native Copper, Cuprite, Magnetite, Native Silver, Malachite, Galena, Wittchenite. According to Borg, 1995, some parts of the mineralized bodies contain rich fracture hosted chalcocite mineralization in rocks that also contain disseminated sulphide mineralisation. Concentrations of other minerals are low and no economically significant anomalies of Pb or Zn have been identified up to date. There exists however Pb anomalies of up 700 ppm and traces of galena on fractures in pyrite cubes, distal to the chalcocite mineralized zone and the enclosing, suggesting the presence of a weakly developed lead zone (Borg, 1995). The Klein Aub fault controls the shape, size and grade of the mineralization at the Klein Aub mine. The mineral and metal zonation pattern of the mineralized zones is related systematically to the fault in the shape of concentric lobes with their source close to the deeper part of the fault. The zonation pattern is elongated along the bedding of the northerly rising green sedimentary rocks. The zonation pattern starts with a zone of native copper and grades outwards and upwards into the chalcocite zone (main mineralization) which is enclosed by the bornite and then chalcopyrite fringe zones. The fringe zone grades into a pyrite zone bearing galena and finally into unmineralised rocks containing diagenetic pyrite, which is the unaffected host rock. EPL 3501 In the eastern portion of the farm Nuwedam 348, copper mineralisation occurs in conglomerate of the Eindpaal Member which underlies the Kagas Member of the Klein Aub Formation. The rocks of the Kagas Member host the stratabound copper-silver mineralisation which was mined at Klein Aub. Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 25 ________________________________________________________________________ The Klein Aub Fault which controls the shape, size and grade of the copper mineralization at the Klein Aub Mine , seems to extend into farm Nuwedam 348, where the above mentioned copper occurrence has been explored. Barite The barite deposit on the farm Auchas 347 is accessed by a 10 km long road branching off from the district road C24. The last 2 km, which cross a hill, are in poor condition. The barite vein was investigated by trenches and drill holes to a vertical depth of approximately 50 m (Plate 5.2). The barite vein fills an irregular fracture in Piksteel granodiorites striking east-west for some 265 m. In the past, some exploration activities were conducted on the gold-copper quartz vein stockwork on farm Auchas 347, which is probably associated with the Piksteel granodiorite. However, more detailed information is needed in order to evaluate the mineral potential. EPL 3760 Lepel 339 The area of farm Lepel 339, where copper was found in quartzite of the Kagas Member of the Klein Aub Formation, has a potential for a stratabound and structurally controlled copper –silver mineralisation of the Klein Aub type. The mineralisation occurs along the strike of the Klein Aub Formation. Blaubeker 488 Copper-silver mineralisation, occurs in rocks of the Blaubeker Formation of the Damara Sequence in the eastern part of farm Blaubeker 488. Mineralization consists of malachite and minor azurite mineralisation and is exposed on a steep river slope and in four trenches on an adjacent hill crest to the east. The mineralisation is associated with grey-green shale beds and shaley quartzite up to 30 cm thick marking a reducing environment. Up to eight shale beds are intercalating thicker quartzite layers. The series, which steeply dips to the northwest, is overlain by conglomerate and underlain by barren red shale. The mineralised series is exposed over a strike length of 200 m and a width of 50 m. Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 26 ________________________________________________________________________ Bloedrivier 491 Due to the sparse available information on the mineralised quartz vein on farm Bloedrivier 491 an assessment of its potential is impossible. Spitskop Suidwes 500 and Kambes 498 On the farms Spitskop Suidwes 500 and Kambes 498, copper indications in lenses of finegrained limestone and locally in shale of the Dassie Nappe have been traced over a distance of 5 km. Mineralization consists of malachite occurring on bedding planes of the limestone. The limestone is overlain and underlain by barren red shale marking an oxidising environment. The striking feature of the copper showings is their extension over a distance of 5 km. They seem to be associated with the same stratigraphic horizon, a shale layer with limestone lenses. Locally, disseminated copper sulphides are occurring. Tsabisis 340 Quartz veins have been identified as occurring on farm Tsabisis 340, which are mineralised with copper sulphides and malachite. They very likely are of a post-deformational origin. Garies Wes 492 The copper mineralisation occurring as Malachite is reported as occurring on farm Garies Wes 492. The mineralization occurs in cherty layers at the base of a black limestone. It may belong to the stratabound type. Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 27 ________________________________________________________________________ 10. Deposit Types The type of deposit being sought for on the Kline Aub Group is a Stratabound copper-silver deposit. The following description is taken from an abstract for the symposium on Sediment Hosted Strataform Copper deposits by Borg and Maiden. The basins have formed in an extensional tectonic environment, with intensive block faulting. A lower volcanic suite is overlain by a succession of continental red-beds. Above these beds lie grey and green, fine clastic sediments and carbonates deposited in a shallow marine environment. The whole succession is affected by metamorphism in the lower greenschist facies and is slightly deformed by tectonism of Damaran age. In the volcanic suite, copper mineralization occurs in basaltic lavas that are strongly altered locally, and gold mineralization is hosted by felsic porphyries. Stratabound copper deposits in the fine clastic sediments consist of Cu-Ag-Au-(Pb)-(Zn)-Mo-Co, with chalcocite, bornite and chalcopyrite as the principal economic minerals. Exploration to date has shown the existence of five mineralized districts, with mineralized zones of between 1 and 20 million tonnes. Although the mineralization shows a stratabound character, it is not limited to a single horizon or host-rock. Copper mineralization occurs in pyritic slate, metasiltstone, pyritic sandstone, calcareous slate and detrital and algal limestone. Fluids are considered to have moved upward through the succession; they leached metals out of the volcanic rocks and precipitated them in favorable host-rocks. Basement faults, forming horst and graben structures, had a channeling effect on the moving fluids and determined the localization of the mineralized bodies. 11. Exploration Exploration programs conducted by Logwood investments have consisted of desk top studies consisting primarily of obtaining and compiling historical data and reports and summary’s from the Geological Survey of Namibia (“GSN”). The company purchased geophysical and radiometric data covering the three EPL’s. There has been limited to no Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 28 ________________________________________________________________________ interpretation of this data by Logwood. Field samples have been collected by Logwood on the East shaft area and from the main tailings area and from the smaller tailings area near the Maria shaft. The results are shown in table 3 below: Table 3. Logwood samples Sample No. Coordinates ES1 ES2 Element Analaysed Gold (Au) Platinum (Pt) Silver (Ag) Copper (Cu) S: 23°46’50.1’’ E: 016°40’44.0’’ As above Analytical Results (mg/kg) 0.02 <0.05 45.4 15500 Lead (Pb) Zinc (Zn) 153 105 Gold (Au) 0.02 Platinum (Pt) Silver (Ag) Copper (Cu) Lead (Pb) Zinc (Zn) <0.05 38.7 13300 64 66 The check samples collected by the author are plotted on the tilt derivative of the Reduced to Pole of the Total Magnetic intensity as in the authors opinion this data best shows the trend of the Klein Aub Formation. Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 29 7370000 mN % % %% KLA-5 KLA-5 7365000 mN KLA-6 KLA-6 KLA-2 KLA-1 KLA-1 KLA-2 7375000 mN 7360000 mN 7355000 mN KLA-3 KLA-3 KLA-4 KLA-4 7350000 mN Midnight Midnight Sun Sun License License Boundary Boundary 7345000 mN 7340000 mN Legend Mine Shaft Klein Aub Samples 7335000 mN % License Boundary 7330000 mN Midnight Sun Sample Location Map Tilt Derivative of RTP Date:19/10/2011 Klein Aub Project Author: Office: Scale: 1:200,000 Projection: UTM Zone 33, Southern Hemisphere (WGS 84) 2 0 2 kilometres 635000 mE 640000 mE 645000 mE 650000 mE 655000 mE 660000 mE 665000 mE 670000 mE 4 7325000 mN Figure 8 Drawing: ________________________________________________________________________ 12. Sample Preparation, Analyses and Security The sampling method employed by the author was to obtain type samples of the mineralization encountered generally the author would take grab samples from dumps of the trenches of from the bottom of trenches. The samples were placed in a 3mil poly plastic bag and labeled with a felt marker. The samples then remained under the supervision of the author until his arrival in Vancouver where the samples were then couriered by Federal Express to TSL Laboratories (“TSL”) in Saskatoon Saskatchewan. TSL is an accredited lab which conforms with requirements of CAN−P−1579, CAN−P−4E (ISO/IEC 17025:2005)). Upon receipt at the lab the procedure was to crush the entire sample to 70% passing 10 mesh (1.70 mm), then riffle split and pulverize approximately so 95% passing 150 mesh (106 μm). For Ag, Cu, Pb, Zn a 0.5 gram sample was dissolved in a four acid digest consisting of HNO3( nitric acid)-HF(Hydrofluoric)-HCLO4)(Perchloric)-HCl( hydrochloric) and then analysed by absorption. AAS method is absorption analysis (as opposed to emission analysis). The elements in solution are vaporized into an acetylene flame. The atoms of the element in the flame absorb light. The analysis is performed by the measurement of the amount of this light that is absorbed by the sample. The monochromatic light source used is selected to match an absorption line of the element of interest. The monochromatic light source used produces a wavelength of light that precisely matches the absorption line of the element of interest. AAS is capable of achieving ppm values for most elements. AAS analysis can only accurately be done one element at a time. For gold analysis the preparation was the same as for the base metal elements but a 1 AT (29.16 grams) was combined with a flux mixture of litharge, soda, borax, silica, fluorspar with fur- ther oxidants or reductants added as required. The relative concentrations of the fluxing materials are adjusted to suit the type of sample being analyzed. Crucibles are placed into trays of 24 and ~120 grams of flux is added. Twenty samples, three repeats and a standard are weighed into the crucibles, then placed into a tumbler and mixed for 10 minutes. When mixed, the samples are removed, inquarted and fused. The resultant lead button is then cupelled. After cupellation the subsequent Doré bead is flattened, placed in a porcelain cup and parted with a dilute nitric acid solution. The gold obtained is decanted with de-ionized water, dried, annealed, and weighed on a microbalance. Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 31 ________________________________________________________________________ The author has relied on the Quality Assurance procedures employed by TSL Labs, three standards were analysed along with the submitted samples and values returned were acceptable to the lab. In the author’s professional opinion the sample preparation, security and analytical procedures employed by the author and TSL Laboratories were adequate given the purpose of the check samples and the stage of exploration the property is currently at. 13. Data Verification During the property visit conducted by the author, all the permits were visited and assessed for access by roads and trails. The author toured the old Kline Aub Mine workings viewing the Maria shaft location, west shaft and approximate location of the Van Zyl shaft, the tailings impoundment area for both the Maria shaft and the near the Van Zyl shaft were observed. The author also viewed and verified trenches on EPL 3501, 3663, 3760. In Windhoek, Logwood operates a modern office where a main data digital base of all exploration data is maintained. All maps and documentation are also stored here. No independent data verification was undertaken on samples collected by previous operators or by Logwood. During the site visit the author traveled to three documented mineral occurrences, the author attempted to access the barite occurrence on 3501 but was unable to access any of the mineral showings in the north of EPL 3501 due to being unable to ford the river. Additionally the author was unable to visit showings on the eastern and western portions of EPL 3760 due to time constraints. The author did collect 6 grab samples of trench material taken from trenches at Nuwedam 1, 2 Blaubeker 1, 2 and Klein Aub South mineral occurrences. Rock descriptions and assay data are summarized in table 6 below: Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 32 ________________________________________________________________________ Table 4. Rock samples Utm south Utm East Type 7365529 655858 grab 7365967 658140 grab 7355663 650761 grab 7353588 649877 grab 7365995 669724 grab 7365995 669724 grab Description taken at Nuwedam 2 trench qtzite with abundant Malachite/azurite stain along schistose plane taken at Nuwedam 1 trench qtzite with abundant Malachite/azurite stain taken at Blaubeker 1 trench qtzite with abundant Malachite/azurite stain along schistose plane taken at Blaubeker 2 trench qtzite with abundant Malachite/azurite stain along schistose plane taken at Klein Aub South trench qtzite with abundant Malachite/azurite stain along schistose plane taken at Klein Aub South trench quartz vein abundant Malachite/azurite stain along schistose plane Cu % Ag (g/t) 2.35 132 6.18 81.9 0.49 19 3.87 125.9 3.97 22.2 2.85 31.6 Data pertaining to the Exclusive Prospecting Licenses was verified on the Namibian Ministry of Mines and Energy website www.mme.gov.na under the Current Licenses tab. The author did not take samples from the tailings impoundments as the option agreement does not cover the tailings. 14. Adjacent Properties There is no description of adjacent properties for this report. 15. Mineral Processing and Metallurgical Testing There has been no mineral processing or metalurgical test work carried out on Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 33 ________________________________________________________________________ 16. Mineral Resource and Mineral Reserve Estimates At present no mineral resource or reserves exist for any of the three permit areas 17. Other Relevant Data and Information At present there is no other relevant data or information for any of the three permit areas 18. Interpretation and Conclusions The Klein Aub Group of Exclusive Prospecting Licenses is strategically located in central Namibia with good road access and electrical power. The property hosts the past producing Kline Aub Copper Mine which produced 211,293 tonnes of copper concentrate from 5,128,518 tonnes of mineralized rock. The Kline Aub formation which hosted the mineralization at the mine extends from the Kline Aub mine site some 12.5 kilometers to the west across EPL 3501 to the northeast corner of EPL 3760. Trenching has exposed copper mineralization occurring primarily as malachite an azurite along strike of the formation and was confirmed by check samples taken by the author. To the south similar style mineralization was observed in trenches at farm Blaubeker suggesting that a similar mineralizing event may be present there. The exploration data supplied by Logwood is primarily regional in nature, this is due impart to size of the EPLs. The geophysical data sets are useful in identifying various stratigraphic and structural components and will be useful in defining areas for ground follow-up. Risks associated with regional geophysical data are that it measures the relative intensity of the physical properties of the underlying geology, and may result in outlining a suitable geological trend to follow up, but is no assurance that economic mineralization is present along the trend. The bulk of the information reported on in this report has relied on historical data, or archived data which at the time of this report was often incomplete or lost and thus could affect the prospectivity of the EPL’s. A further and more comprehensive search for historical data may for instance show that the grade of the remaining mineralization at the Klein Aub Mine may be of an uneconomic concentration, or that previous explorers had tested areas thought to be prospective but had shown to be uneconomic or devoid of mineralization. Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 34 ________________________________________________________________________ 18.1 Conclusions Based on a thorough review of the existing data and a property visit where samples were taken, it is the author’s professional opinion that the Kline Aub Group of EPL’s constitutes a property of merit with the appropriate geological characteristics to potentially host economic concentrations of copper-silver mineralization. 19. Recommendations In order to advance the property a $1,400,000.00 Can Phase One exploration program is recommended. . Phase One would consist of a thorough and detailed search of Geological archives and of past operators and or employees of the Klein Aub mine for available data. This would be supplemented by a full compilation of all data pertaining to EPLs 3663, 3501 and 3760 including if possible purchasing any airborne EM data. All data would be input into a suitable digital database. Concurrent with the compilation and data entry, a program of surficial geological mapping and prospecting at a scale of 1:10,000 along the Strike of the Klein Aub Formation west of the West Shaft to the western boundaries of EPL’s 3501 and 3760 would be conducted. Concurrent with this ground work a combination soil geochemical and ground geophysical survey should be undertaken to infill gaps between surface outcrops. This Phase one program should culminate with 5000 meters of diamond drilling to first of all test the potential of the remaining mineralization of the Vliegveld zone at the Kline Aub Mine, and secondly to test the new targets identified by the ground work. Contingent on positive results from Phase One, a Phase Two program consisting of 10,000 meters of diamond or Reverse Circulation drilling would be recommended. This Phase two program would be estimated at $2,500,000. PHASE ONE – BUDGET Compilation ………………….……………………………………………………………………..………….$30,000 Sr. Geologist 60 days @700 per day ……………………………………………………..…………….. $42,000 Jr. Geologist a 60 days @500 per day ……………………………….…………………………………. $72,000 Jr. Geologist b 60 days @500 per day ……………………………….…………………………………. $72,000 4 Geo techs for 60 days @350 per man per day………………………………………………..……$84,000 Accommodation Midnight Sun Namibia Project 43-101 and food 350 man-days OCT 15, 2011 @100 per man-days Page 35 ________________________________________________________________________ …………………………………….$35,000 Geophysics and soil sampling ……………………………….………………………………………………$50,000 Trucks and travel ………………..……………………………….………………………………………………$25,000 Subtotal ground work $410,000 Geologist 45 days @700 per day ……………………..… …………………………………..…………..$31,500 Geotech 45 days @350 per day ……………………..… …………………………………..…………..$15,750 Diamond drilling 5000 meters @150 per meter… …………………………………..…………..$750,000 (assumes all in costs transport fuel, assays, lodging drill crew, assays,etc ) Subtotal drilling $797,250 Contingency $193,750 TOTAL Phase One ..……………………………………………………...$1,400,000 PHASE TWO – BUDGET Follow up exploration on all three Prospecting Licenses contingent to positive results from Phase One work totaling at least $2,500,000. The work would focus on follow-up and definition drilling. Total Stage 2…………………………………………………………………………………………$2,250,000.00 Contingency Stage 2 Total Stage 2 ……………….………………………………………………………… $ 250,000.00 ……………………………………………………….……..$2,500,000.00 20. References Borg, G. (1988): Controls on stratabound copper mineralisation at Klein Aub Mine and similar deposits within the Kalahari Copperbelt of south West Africa/Namibia and Botswana. – Unpubl. Ph.D. thesis University of the Witwatersrand, Johannesburg, South Africa, 107 p.; Johannesburg. Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 36 ________________________________________________________________________ Borg, G. (1995): Metallogenesis of Neoproterozoic basins in Namibia and Botswana. – Communs. Geol. Surv. Namibia, 10, 109-119. Borg, G. and Stanistreet, I.G. (1996): Sedimentation and basin development of the Middle Proterozoic Doornport and Klein Aub Formations, Central Namibia. – Hallesches Jahrb. Geowiss., B 18, 1-21; Halle (Saale). Borg, G. and Maiden, K.J. (1986): Stratabound Copper-Silver-Gold Mineralization of Late Proterozoic Age along the Margin of the Kalahari Craton in SWA/Namibia and Botswana.- The Canadian Mineralogist. vol 24 pp169-214 Cunningham, P.L. (2007): Desktop study: Vertebrate fauna & flora expected in the Klein Aub area. – Unpubl. rep., 24 pp.; Windhoek. De Kock, W.P. (1934): The geology of the Western Rehoboth. Expl. Sheet F.33-W.3 (Rehoboth). – Mem. Geol. Surv. S. Afr. (SWA Series, 1, 148 pp. Department of Water Affairs, 2001. Groundwater in Namibia: An explanation to the hydrogeological map. MAWRD, Windhoek, 1, 128 pp. Directorate of Environmental Affairs (DEA)., 1995. Namibia's environmental assessment policy for sustainable development and environmental conservation. Ministry of Environment and Tourism, 17 pp. Directorate of Environmental Affairs, 2002. Namibia Environmental Atlas. Compiled by the Geological Survey of Namibia, MME, Windhoek. Erongo Exploration (1964): Prospecting grant M46/3/82. – Unpubl. rep., 1 p. Geological Survey (1992): The mineral resources of Namibia. Chapter 2.13.9.1.1. Klein Aub mine, p. 2.3-33 – 2.3-35. Geological Survey of Namibia., 1999. The Simplified Geological Map of Namibia, Windhoek. Giess, W. 1971. A preliminary vegetation map of South West Africa. Dintera 4: 1-114. Grasty, R.L., Whitton, R.M., and Duffy, A., 1992, Back calibration and reprocessing of an airborne gamma-ray survey, Malaysia, 62nd Annual SEG Meeting, Extended Abstracts GM2.3, 550-551. Grasty, R.L., and Minty, B.R.S., 1995, A guide to the technical specifications for airborne gamma-ray surveys: Australian. Geol. Surv. Org., Record 1995/60. IAEA, 1991, Airborne gamma ray spectrometer surveying, Technical report series, no 323, International Atomic Energy Agency, Vienna. Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 37 ________________________________________________________________________ Jasper, M.J.U., Stanistreet, I.G. and Charlesworth, E.G. (2000): Neoproterozoic inversion tectonics, half-graben depositories and glacial controversies, Gariep fold-thrust belt, southern Namibia. – Communs geol. Surv. Namibia, 12, 187-196. Joubert, J. (2003): Klein Aub Copper Namibia. Final report. – Unpubl. rep. Joubert, J. (2006): Klein Aub Copper Tailings, Namibia. Final report. – Unpubl. rep., 9 pp. Rimann, E. (1915): Geologische Untersuchungen des Bastardlandes in DeutschSüdwestafrika. – D. Reimer, Berlin, 100 pp. Kappa Mining and Prospecting C. (1974): Report on Grant M46/3/511. –Unpubl. rep., 3 pp. Miller, R. McG., 1992. Stratigraphy. The mineral resource of Namibia, Geological Survey of Namibia, MME, Windhoek, 1.2 .1 -1.2.13. Miller, R. McG., 1983a. The Pan – African Damara Orogen od S.W.A. / Namibia, Special Publication of the Geological Society of South Africa, 11, 431 - 515. Miller, R. McG., 1983b. Economic implications of plate tectonic models of the Damara Orogen, Special Publication of the Geological Society of South Africa, 11, 115 -138. Minty, B.R.S.,1992, Airborne gamma-ray spectrometric background estimation using full spectrum analysis: Geophysics, 57(2), 279-287. Nash, C.R., 1997, Geological image interpretation and GIS-based data integration: Australian Mining Foundation, Adelaide, Course notes, 107/97. Porada, H. (1979): Pan-African rifting and orogenesis in Southern to Equatorial Africa and Eastern Brazil. – Precambr. Res., 44, 103-136. Rimann, E. (1915): Geologische Untersuchungen des Bastardlandes in DeutschSüdwestafrika. – D. Reimer, Berlin, 100 pp. Seeger, K.G. (1978): Copper. – Unpubl. rep., Geol. Surv. Namibia, 268 pp. Schneider, G. I. C and Seeger, K. G. 1992. Copper. In: Mineral resource of Namibia, Geological Survey of Namibia, Ministry of Mines and Energy, Windhoek, 2.3.1 – 2.3.172. Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 38 ________________________________________________________________________ Schalk, K.E.L. (1970): Some Late Precambrian Formations in central South West Africa. – Ann. Geol. Surv. S. Afr., 8, 29-47. Snowdowne, J.B.H. (1964): Investigation of the Rehoboth gold field, South West Africa. – Unpubl. rep., Rand Mines, and Int. rep., geol. Surv. Namibia, IO 300 (EG 042), 13 pp. Söhnge, G. (1961): Copper and lead prospects on Auchas 347, Rehoboth. – Unpubl. rep., Tsumeb Corp. Ltd., 7 pp. Van der Merwe, J.H. (1983): National atlas of South West Africa (Namibia). -National Book Printers, Cape Town, South Africa, 92pp. Van Der Heever J., Van Rensburg J., Arengi A. (2009): Preliminary Assessment report Ghanzi Copper-silver Project Ghanzi, Botswana, Hana Mining Corp. 43-101 report Sedar, 116 pages Worst, B.G. (1970): Nuwedam Grant – Rehoboth M46/3/203. – Unpubl. rep. Tsumeb Corp. Ltd., 19 pp. Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 39 ________________________________________________________________________ 21. Date 21.1 SIGNITURE PAGE AND DATE: The undersigned prepared this technical report titled “Technical Report on the Geology of the Klein Aub Group of Prospecting Licenses Republic of Namibia, Southern Africa.” The effective date of this Technical report is 15 October 2011. Dated this _15th Day of _October__2011 Signed “SIGNED AND SEALED” ______________________ Warren Robb P.Geo. Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 40 ________________________________________________________________________ 21.2 CERTIFICATE OF QUALIFIED PERSON: CERTIFICATE To accompany the report entitled “Technical report on the Geology of the Klein Aub, Group of Prospecting Licenses Republic of Namibia, Southern Africa Dated October 15, 2011 I, WARREN D. ROBB, do hereby certify that: a) I am a consulting geologist residing at 21968- 127 Avenue Maple Ridge, B.C. V2X 4P5 b) I graduated from the University of British Columbia with a Bachelor of Science degree in Geological Sciences in 1987, and I have practiced my profession continuously since that time. I have conducted gold exploration programs and property reviews in Canada, Argentina, China and worked for six years in the Republic of Guinea, Southern Africa in the production of diamonds and in the exploration for gold. I have been a member of the Association of Professional Engineers and Geoscientists of British Columbia registration number 19947, since December 1992. c) That by reason of my education, affiliation with a professional association and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI43-101. d) I personally visited the property for four days August 24,26,27,29, 2011. Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 41 ________________________________________________________________________ e) I am responsible for the preparation of all items of the technical report entitled “Technical Report on the Geology on the Klein Aub Group of Prospecting Licenses” dated October 15, 2011 (“the technical report”) relating to the Klein Aub Group of Prospecting Licenses in the Republic of Namibia, Southern Africa. f) I am independent of the issuer Midnightsun Mining Corp. and of Logwood Investments (Pty) Ltd. applying all tests in section 1.5 of National instrument 43-101. g) I have had no prior involvement with the Klein Aub Group of Exclusive Prospecting Licenses. h) I have read National Instrument 43-101 and Form 43-101F1, and the Technical report has been prepared in compliance with that instrument and form. g) As of the effective date of the technical report to the best of my knowledge, information and belief the technical report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading. Dated this _15th Day of _October __2011 “SIGNED AND SEALED” __Warren Robb, P. Geo.________________ Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 42 ________________________________________________________________________ APPENDIX I PERMIT DETAILS Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 43 ________________________________________________________________________ APPENDIX II CERTIFICATE OF ANALYSIS Midnight Sun Namibia Project 43-101 OCT 15, 2011 Page 44
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