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Projects

Hawk Ridge Project

Hopes Advance Main Zone


Source: NI43-101 Technical Report for Hawk Ridge Project, Quebec -- April 30, 2012

* Historical resource estimates of reserves calculated on the Hopes Advance Main Zone are non-compliant with NI43-101

The Hopes Advance Main Zone is located in the northern part of the property immediately north of Lambda Lake. The zone is underlain by a unit of porphyritic gabbro that dips steeply to the east and lies above a unit of grey siliceous metasedimentary unit 3-15 m thick that contains 2-20% pyrrhotite and 0-1% chalcopyrite. Peridotite, gabbro and basalt in thrust contact with the glomeroporphyritic gabbro are present to the east.

On surface the porphyritic gabbro appears as a gossan about 30 m wide and 800 m long. To the east of the Main Zone an overturned doubly plunging syncline strikes north-northwest. The hinge zone for the double plunging syncline strikes northeast 400 m east of the zone of mineralization (Figure 18).



In 1962 the Main Zone was tested by several channel samples and by two drill holes for a total of 676 m. The Main Zone was further evaluated in 1996-1997 with 15 drill holes for 2922 m. The important intersections from these holes are presented in Table 10.

A consultant performed a historical resource estimate using the drill hole assay data on the Hopes Advance Main Zone and reported 48.4 million tonnes of proven and probable reserves with an average grade of 0.51% Cu, 0.18% Ni and <0.01% Co to a depth of 500 m (Paul, 1997). The calculation was made using assay data from 14 drill holes from the 1996-1997 drilling campaign and from incomplete data in two holes drilled in 1962 and provided a to a depth of about 500 m. The details of this historical resource estimate were described earlier in this report and present three scenarios for open pit operations and four scenarios for underground mining using key assumptions for commodity prices, exchange rates and costs that are no longer valid (Paul, 1997).



The mineral reserve calculations of the Hopes Advance Main Zone are unreliable and undependable because they were carried out prior to the development of the regulations of NI 43-101 and were performed by someone who is not a qualified person. The economic projections are invalid and of little value because many of the assumptions were not based on factual data and most are no longer valid.

These historical resource estimates of reserves calculated on the Hopes Advance Main Zone by Paul should not be considered current mineral reserves. A more recent resource calculation has not been prepared on the Hopes Advance Main Zone because additional infill drilling and assaying in the zone are required to confirm the extent of the mineralization. Moreover, assay verifications of the core still available are necessary before any further resource calculation can be made by a qualified person in this area. The historical resource estimate is not being treated as current mineral resources or reserves.

The mineralization is present as disseminated and veined sulphides mostly in glomeroporphyritic gabbro. The glomeroporphyritic gabbro is uniform, massive and medium-grained, 60-80% of which is composed of greyish-white plagioclase glomerocrysts in a coarse-grained amphibole-rich matrix.

More important mineralization is often reported 10-20 m above the base as in drill hole HR 96-10 where grades 0.7-1.4% Cu and 0.2-1.5% Ni were reported over a total core length of 8.7 m. The composite assays show a consistent average grade of mineralization throughout the unit and averages 0.54% Cu and 0.20% Ni over 46.6 m (Figure 19).



A soil and rock chip survey carried out in 1989 on 332 samples reported three samples with more than 500 ppb Pt and six samples with more than 500 ppb Pt (see Table 11).



Rock samples from the porphyritic gabbro and surrounding rocks reported values of 0-180 ppb Au, 5-50 ppb Pt and 4-210 ppb Pd from 17 samples (Wares and Goutier, 1990).

In certain drill holes such as HR 96-20 the better mineralization occurs near the metasedimentary unit that has been hornfelsed where a composite grade of 0.51% Cu and 0.17% Ni were reported over about 51.7 m, true width.

Several of the drill holes in this section were not sampled to the bottom of the hole and additional mineralization could be identified in these sections.