2013 PROJECT REPORT FOR METALLURGICAL TESTING ON THE SAN ALBINO PROJECT

Transcription

1 213 PROJECT REPORT FOR METALLURGICAL TESTING ON THE SAN ALBINO PROJECT Prepared for: GOLDEN REIGN RESOURCES CORP Howe Street Vancouver, BC V6C 2T5 Attention: Mr. Zoran Pudar, VP Exploration Mr. John Kowalchuk, Project Manager Prepared by: Inspectorate Exploration & Mining Services Ltd Metallurgical Division 1162 Horseshoe Way Richmond, B.C. V7A 4V5 Project No.: 1312 Reported by: Stephane Beland Senior Metallurgist Reviewed by: Michael Redfearn, P.Eng. Director Metallurgical Services Date: June 4th, 213

2 Metallurgical testing report Golden Reign Resources San Albino Project 2 TABLE OF CONTENT Page No. 1 SUMMARY INTRODUCTION DISCUSSION OF RESULTS HEAD SAMPLE CHARACTERIZATION TEST GRINDS DIAGNOSTIC LEACH TESTS CYANIDE LEACH TESTS GRAVITY RECOVERY TESTS ROUGHER FLOTATION TESTS SIZE-BY-ASSAY ANALYSIS OF TEST TAILINGS SEQUENTIAL GRAVITY-FLOTATION TESTS ANALYTICAL CONSISTENCY CHECKS CONCLUSIONS AND RECOMMENDATIONS... 2 APPENDICES Appendix I - Sample Receiving & Preparation Log Appendix II Metallurgical Test Results & Procedures Appendix III Sizing Results Inspectorate Metallurgical Division

3 Metallurgical testing report Golden Reign Resources San Albino Project 3 1 SUMMARY A laboratory testing program was conducted on four composite samples collected by Golden Reign, designated as A, B, C and D, to determine their amenability to gold and silver recovery via direct cyanide leaching, centrifugal gravity concentration and sulphide flotation processes. The study covers the following major topics: head assay, cyanide leaching at three different grind sizes, gravity concentration at 2 grind sizes and rougher flotation kinetic assessment at three different grind sizes. The best results were combined to test the combined gravity-flotation gold recovery from two primary composites. Fire assays of the four composites indicated gold grades of 29.9, 13.7, 6.3 and 3.9 g/t for composites A, B, C and D, respectively. These grades were used to check for analytical consistency in each test. Diagnostic leach tests results show that samples A, B and D contained cyanidesoluble gold in the range of 78.6 to 89.3 using 2g/L activated carbon. The gravity pre-concentration tests indicated that 3-pass Au recoveries between 8.2 to 84.4% were achieved on composites A through C at a grind target P8 of 1µm. Gravity recovery of Au on composite D was lower, just under 52%. All samples generally responded well to sulphide flotation, with gold recoveries in the range of 76.6 to 85.5% on tests carried-out at the finer grind size target of P 8 75µm and after 8 minutes of flotation. Sequential gravity-flotation testing on composite D as well as a 5/5 blend of composite A and B material resulted in total recoveries of 96.4% Au and 92.6% Ag for composite AB and 84.3% Au and 86.8% Ag for composite D. It is recommended to pursue this processing route for further optimization and to investigate upgrading of the concentrate grades. Inspectorate Metallurgical Division

4 Metallurgical testing report Golden Reign Resources San Albino Project 4 2 INTRODUCTION Inspectorate Metallurgical Division was retained by Mr. Zoran Pudar, on behalf of Golden Reign Resources Ltd., to perform metallurgical testing on gold-bearing samples originating from the San Albino property in Nicaragua. The scope of work proposed is a preliminary study of three basic methods of gold recovery on four composite samples representing vein material, schist material with graphite and oxidized material from trenches. This report summarizes the laboratory test procedures and results of the scoping study, which involves: Head assay characterization; Diagnostic leach test to evaluate the gold deportment; Baseline cyanide leaching tests at 3 different grind sizes over a 72 hour period; Gravity separation tests at 2 grinds to determine the presence of coarse gold; Rougher flotation at 3 grinds to determine if a bulk sulphide float will recover the precious metal content as well as sulphide Pb and Zn. Sequential gravity-flotation testing of a master vein composite of 5/5 composites A and B, as well as on composite D. Inspectorate Metallurgical Division

5 Metallurgical testing report Golden Reign Resources San Albino Project 5 3 DISCUSSION OF RESULTS Various sub-topics will be addressed, as organized in the following sections. Details of the individual test results are presented in the Appendices, and major findings only are highlighted in the text. 3.1 HEAD SAMPLE CHARACTERIZATION A shipment consisting of 14 sample bags containing combination of rock samples and assay rejects, with a total weight of 177 kg was received on February 13, 213 via the courier DHL. The samples were received into inventory, air dried and separated into four (4) composites, designated A, B, C and D. As composite samples A to C were already crushed to 6 mesh, only composite D needed to be crushed to 6 mesh. The composite samples were then mixed and split into the required samples for testing. The preparation procedure and receipt list for the San Albino samples are presented in Appendix I. Precious metal contents were determined for each composite by both fire assay and metallic screen methods for Au, ICP-AES3, Leco (C) and Whole Rock Analysis as shown in Tables 1, 2 and 3. Table 1. Precious Metal Head Assays Assays Element Unit Comp A Comp B Comp C Comp D Gold (Met Scrn) Au ppm Gold (FA) Au ppm Silver Ag ppm Graphite C % Sulphur (total) S % Inspectorate Metallurgical Division

6 Metallurgical testing report Golden Reign Resources San Albino Project 6 Table 2. ICP-MS3 Head Assays Assays Element Unit Comp A Comp B Comp C Comp D Element Unit Comp A Comp B Comp C Comp D Assays Aluminum Al % Manganese Mn ppm Antimony Sb ppm Mercury Hg ppm <3 <3 <3 <3 Arsenic As ppm Molybdenum Mo ppm Barium Ba ppm Nickel Ni ppm Bismuth Bi ppm <2 Phosphorus P ppm Cadmium Cd ppm Potassium K % Calcium Ca ppm Scandium Sc ppm <1 Chromium Cr ppm Sodium Na % Cobalt Co ppm <1 Strontium Sr ppm Copper Cu ppm Titanium Ti % <.1 <.1 <.1 <.1 Indium In ppm Thallium Tl ppm <1 <1 <1 <1 Iron Fe ppm Tungsten W ppm <1 <1 <1 <1 Lanthanum La ppm <2 <2 3. <2 Vanadium V ppm Lead Pb ppm Zinc Zn ppm Magnesium Mg % <.1 Zirconium Zr ppm <5 <5 <5 <5 Table 3. Whole Rock Analysis Assays Compound Unit Comp A Comp B Comp C Comp D Compound Unit Comp A Comp B Comp C Comp D Assays Al 2 O 3 % MnO % BaO % Na 2 O % CaO % P 2 O 5 % Cr 2 O 3 % SiO 2 % Fe 2 O 3 % TiO 2 % K 2 O % LIO % MgO % Total % The specific gravity of each sample was also determined and is shown in Table 4 below. Table 4. Specific Gravity Sample Solids Specific Gravity, g/cm 3 ID Comp. A Comp. B Comp. C Comp. D Inspectorate Metallurgical Division

7 P8, microns Metallurgical testing report Golden Reign Resources San Albino Project TEST GRINDS Three 2 kg samples were ground at 65% solids in a stainless steel rod mill for varying times from 1.5 to 22 minutes in order to establish a grind size versus time curve. These results are listed in Table 5 and Figure 1 below. These grind time estimates were used to target specific grind sizes throughout the testing campaign. Complete details are shown in Appendix III, pages 25 to 36. Table 5. Test Grind Summary Test Composite Time P8 No. ID min µm TG TG2 A TG TG TG5 B TG TG TG8 C TG TG TG11 D TG San Albino Composites - P8 vs Grind Time Grind time, min Compo A Compo B Compo C Compo D Figure 1. P 8 vs. Grind time for San Albino composites Inspectorate Metallurgical Division

8 Metallurgical testing report Golden Reign Resources San Albino Project DIAGNOSTIC LEACH TESTS A standard diagnostic leach was performed on the San Albino composites. As shown in Tables 6 to 9, samples A, B and D contained cyanide-soluble gold in the range of 78.6 to However in sample C it was found that only 43.4% of the gold is cyanide-soluble, with much of the sample associated with a combination of majority sulphides and preg-robbing or refractory minerals. It should be noted that the Stage-1 test is done using 2g/L activated carbon as a CIL bottle roll leach. Complete test details are shown in Appendix II, pages 1 to 4. Table 6. Test Grind Summary Composite A Distribution Distribution SUMMARY Au Au Ag Ag mg % mg % Stage 1 - Cyanide Soluble Stage 2 - Primarily associated with carbonaceous minerals Stage 3 - Primarily associated with calcite/dolomite/pyrrhotite minerals Stage 4 - Primarily associated with base metals sulphides (Labile sulphides) Stage 5 - Primarily associated with majority sulphides (Py,AsPy and Marcasite) Residue - Insoluble or associated with preg-robbing and other refractory minerals Total Table 7. Test Grind Summary Composite B Distribution Distribution SUMMARY Au Au Ag Ag mg % mg % Stage 1 - Cyanide Soluble Stage 2 - Primarily associated with carbonaceous minerals Stage 3 - Primarily associated with calcite/dolomite/pyrrhotite minerals Stage 4 - Primarily associated with base metals sulphides (Labile sulphides) Stage 5 - Primarily associated with majority sulphides (Py,AsPy and Marcasite) Residue - Insoluble or associated with preg-robbing and other refractory minerals Total Table 8. Test Grind Summary Composite C Distribution Distribution SUMMARY Au Au Ag Ag mg % mg % Stage 1 - Cyanide Soluble Stage 2 - Primarily associated with carbonaceous minerals Stage 3 - Primarily associated with calcite/dolomite/pyrrhotite minerals Stage 4 - Primarily associated with base metals sulphides (Labile sulphides) Stage 5 - Primarily associated with majority sulphides (Py,AsPy and Marcasite) Residue - Insoluble or associated with preg-robbing and other refractory minerals Total Inspectorate Metallurgical Division

9 Metallurgical testing report Golden Reign Resources San Albino Project 9 Table 9. Test Grind Summary Composite D Distribution Distribution SUMMARY Au Au Ag Ag mg % mg % Stage 1 - Cyanide Soluble Stage 2 - Primarily associated with carbonaceous minerals Stage 3 - Primarily associated with calcite/dolomite/pyrrhotite minerals Stage 4 - Primarily associated with base metals sulphides (Labile sulphides) Stage 5 - Primarily associated with majority sulphides (Py,AsPy and Marcasite) Residue - Insoluble or associated with preg-robbing and other refractory minerals Total CYANIDE LEACH TESTS The purpose of the baseline bottle-roll direct cyanide leach tests was to evaluate gold extraction rates at three different grinds. All tests were conducted over 72 hours in.5g/l NaCN with PLS samples taken at 2, 4, 8, 24, 48 and 72 hours and assayed along with the leach residues for Au and Ag, from which a mass balance was completed for each test. Cyanide leach results are summarized in Table 1 and Figure 2, and further details are provided in Appendix II, pages 5 to 16. Table 1. Cyanide Leach Test Summary Test No Sample Grind P8 Measured Head Calculated Head Recovery Residue Consumption (kg/t) ID µm Au (g/t) Ag (g/t) Au (g/t) Ag (g/t) Au (%) Ag (%) Au (g/t) Ag (g/t) NaCN Lime C C2 Composite A C C C5 Composite B C C C8 Composite C C C C11 Composite D C Inspectorate Metallurgical Division

10 Extractions, % Extractions, % Metallurgical testing report Golden Reign Resources San Albino Project 1 Gold Extraction Kinetics Leach time, hours C1 C2 C3 C4 C5 C6 Figure 2. Cyanide Leach Kinetics for Au on Composites A and B Gold Extraction Kinetics Leach time, hours C7 C8 C9 C1 C11 C12 Figure 3. Cyanide Leach Kinetics for Au on Composites C and D In general, the San Albino samples were found not to be sensitive to grind size in the 15 to 75µm range. Poor leach extractions by direct cyanide leaching is likely Inspectorate Metallurgical Division

11 Max. Au extraction, % Metallurgical testing report Golden Reign Resources San Albino Project 11 due to the graphite carbon in the samples leading to preg robbing, which was found to be evident in the diagnostic leach tests. Furthermore, the highest Au extraction observed in these test were on composite D, which assayed at the lowest graphite content of the three composites. The effect of carbon on leach extraction is better demonstrated in Figure 4 below. 1. Leach Extraction Vs. Graphite Carbon Graphite content, % Compo A Compo B Compo C Compo D Figure 4. Gold extraction vs. graphite content on all composites Cyanide consumption was on the order of.61 to.95 at the coarse grind, and.95 to 1.16 kg/t at the fine grind, at a level of.5 g/l NaCN. 3.5 GRAVITY RECOVERY TESTS The centrifugal gravity tests were carried out to evaluate the San Albino samples response to gravity concentration to recover gold at two different grind sizes. A 2kg sample of each sample was slurried to 2% solids and fed through a 3 laboratory Knelson concentrator in three stages, as shown in the test flowsheet in Figure 5 below. The concentrates from the first and second passes were panned and all 6 products were assayed for Au and Ag. The test details are available in Appendix II, pages 17 to 24. Inspectorate Metallurgical Division

12 Metallurgical testing report Golden Reign Resources San Albino Project 12 Feed P8~2/1 microns Conc 1 Conc 2 Final Tails Pan Conc. 1 Pan Conc. 2 Conc 3 Pan Tails 1 Pan Tails 2 Figure 5. 3-stage Gravity Separation Test Tables 11 and 12 below outline the results of the 3-stage gravity separation test. Table 11. Gravity Test Summary for Au Recovery (Au, %) per gravity test product Composite No. A B C D Grind Size (µm) Test No. G1 G2 G3 G4 G5 G6 G7 G8 Pan Concentrate Pan Tails KC Concentrate Pan Concentrate Pan Tails KC Concentrate KC Concentrate KC Concentrate Total KC Concentrate Calculated Head Measured Head Inspectorate Metallurgical Division

13 Metallurgical testing report Golden Reign Resources San Albino Project 13 Table 12. Gravity Test Summary for Ag Recovery (Ag, %) per gravity test product Composite No. A B C D Grind Size (µm) Test No. G1 G2 G3 G4 G5 G6 G7 G8 Pan Concentrate Pan Tails KC Concentrate Pan Concentrate Pan Tails KC Concentrate KC Concentrate KC Concentrate Total KC Concentrate Calculated Head Measured Head The gravity pre-concentration tests showed that 3-pass Au recoveries of 8.2 to 84.4% were achieved on composites A to C at a grind target P8 of 1µm. Gravity recovery of Au on composite D was lower, at just under 52%. The test results for Ag show recoveries in the range of 51.4 to 68.6% for composites A through C, and were found to be inconsistently sensitive with respect to grind size. 3.6 ROUGHER FLOTATION TESTS Baseline rougher flotation tests were conducted on the each composite sample at three different grinds, targeting a P 8 of 149, 16 and 74 µm, to investigate the effect of primary grind on metal recoveries. Each rougher stage was conducted over two (2) minutes, and for a total of four (4) stages. Summaries of the tests including recoveries of Ag, Zn and Pb are shown in Tables 13 to 16 below. The details of each test and full results can be found in Appendix II, pages 25 to 48. The results indicate that gold recoveries in the range of 76.6 to 85.5% were achieved on all composites at the finer grind size target of P 8 75µm and after 8 minutes of flotation. Recoveries of Ag were in the range of 6-69% while Pb and Zn recoveries were quite poor, in the range of 6. to 35%. Inspectorate Metallurgical Division

14 Metallurgical testing report Golden Reign Resources San Albino Project 14 Table 13. Flotation Test Summary Au Test P8 Size Rougher Concentrate Au Grade, g/t Au Recovery, % No mm RC 1 RC 1+2 RC 1-4 RC 1 RC 1+2 RC 1-4 Comp A F , , F2 13 2, , , F3 87 1, , Comp B F F F Compo C F F F Compo D F F F Table 14. Flotation Test Summary - Ag Test P8 Size Rougher Concentrate Ag Grade, g/t Ag Recovery, % No mm RC 1 RC 1+2 RC 1-4 RC 1 RC 1+2 RC 1-4 Comp A F ,69.8 1, , F2 13 3, ,55.8 1, F3 87 3, , , Comp B F , , F5 17 2,632. 1, F6 93 2, , Compo C F F F Compo D F F F Inspectorate Metallurgical Division

15 Metallurgical testing report Golden Reign Resources San Albino Project 15 Table 15. Flotation Test Summary - Pb Test P8 Size Rougher Concentrate Pb Grade, % Pb Recovery, % No mm RC 1 RC 1+2 RC 1-4 RC 1 RC 1+2 RC 1-4 Comp A F F F Comp B F F F Compo C F F F Compo D F F F Table 16. Flotation Test Summary - Zn Test P8 Size Rougher Concentrate Zn Grade, % Zn Recovery, % No mm RC 1 RC 1+2 RC 1-4 RC 1 RC 1+2 RC 1-4 Comp A F F F Comp B F F F Compo C F F F Compo D F F F Inspectorate Metallurgical Division

16 Metallurgical testing report Golden Reign Resources San Albino Project SIZE-BY-ASSAY ANALYSIS OF TEST TAILINGS For each composite, a 5g sample was split from the blended residues from the tests which yielded the best results. The samples were then screened and the 7 screen fractions were assayed individually for Au and Ag. The purpose of this test is to determine where the unrecovered precious metals reside, in terms of particle size, to gain a better sense of what could be done to increase metals recovery. A summary of the size analysis are shown in Table 17. The details of each test and full results analysis with 7 screen fractions can be found in Appendix II, pages 49 to 6. Table 17. Size-by-assay analysis results Test Tails P8 Size Au loss (%) per size fraction Ag loss (%) per size fraction (µm) No From Test: mm + 75 µm -75 / + 37 µm - 37 µm + 75 µm -75 / + 37 µm - 37 µm Comp A SA1 C SA2 G SA3 F Comp B SA4 C SA5 G SA6 F Compo C SA7 C SA8 G SA9 F Compo D SA1 C SA11 G SA12 F Results show that: In general, gold and silver losses were primarily found to be in the -37 µm range for both the cyanide leaches and gravity recovery tests. In contrast, gold losses from rougher flotation tests were higher in the coarser size fractions, with the exception of composite D. Running rougher flotation on the gravity tailings stream could produce high combined recoveries. Inspectorate Metallurgical Division

17 Metallurgical testing report Golden Reign Resources San Albino Project SEQUENTIAL GRAVITY-FLOTATION TESTS Based on the gravity, flotation and size-by-assay results, it is clear that the San Albino samples generally respond well to each processing route. Gravity and flotation processing routes complement each other well because flotation can recover the finer particles that cannot be recovered via gravity methods. For this reason, it was decided to test the sequential gravity-flotation processing route to determine the maximum recovery possible from these processing methods. Figure 6 below describes the flowsheet chosen for these tests. Feed P8~74microns Conc 1 Conc 2 Final Tails Flot cons 1-2 Gav + Flot concentrate Figure 6. Sequential Gravity-Flotation Flowsheet The composites chosen for these tests were a 5/5 mix of composite A and B material (denoted as Composite AB) as well as composite D by itself. The head assay for composite AB indicated a gold grade of g/t and silver grade of 36.2 g/t. The results of the test are summarized in Table 18 and 19 below for gold and silver. Note that a 74 micron grind was chosen as the optimal size for both composites. Complete test details are shown in Appendix II, pages 61 to 64. Inspectorate Metallurgical Division

18 Metallurgical testing report Golden Reign Resources San Albino Project 18 Table 18. Gravity-Flotation test results for Au Composite Gravity Concentrate 1 Gravity Concentrate 1+2 Au Recovery, % Rougher Concentrate 1+2 No. Grind Size (µm) Test No. 1st Rougher Concentrate AB 74 GF D 74 GF Gravity + Flotation Table 19. Gravity-Flotation test results for Ag Composite Grind Size Test Gravity Concentrate 1 Ag Recovery, % Gravity Concentrate 1st Rougher 1+2 Concentrate Rougher Concentrate 1+2 Gravity + Flotation No. (µm) No. AB 74 GF D 74 GF Sequential gravity-flotation testing on the two composites resulted in total recoveries of 96.4% Au and 92.6% Ag for composite AB and 84.3% Au and 86.8% Ag for composite D. It was also noted that flotation of the precious metals was mostly complete in the first 4 minutes (rougher stage 1), and that the second stage produced minimal additional metal recovery. 3.9 ANALYTICAL CONSISTENCY CHECKS Weighted head assays for all tests were calculated as a check to ensure overall consistency and no major errors. The assay verifications are shown in Table 2 below. The recovery figures for each tests was calculated by summing the metal content of each test product [weight (g) x assay (g/t)]. The total gold and silver content is then divided by the combined weight of all test products to obtain a grade in g/t. This number was compared with the measured head assays to check for consistency. Inspectorate Metallurgical Division

19 Metallurgical testing report Golden Reign Resources San Albino Project 19 Table 2. Head assay consistency checks Test Composite A - Calculated Head Grades Test Composite C - Calculated Head Grades No. Au g/t Ag g/t No. Au g/t Ag g/t C C C C C C G G G G F F F F F F Calc. Average Calc. Average Head Sample Head Sample Test Composite B - Calculated Head Grades Test Composite D - Calculated Head Grades No. Au g/t Ag g/t No. Au g/t Ag g/t C C C C C C G G G G F F F F F F GF Calc. Average Calc. Average Head Sample Head Sample Test Composite AB - Calculated Head Grades No. Au g/t Ag g/t GF Calc. Average Head Sample All head grades are well within the normal variation for such a testing program, however the calculated Ag levels for composites A and B were generally higher than the measured values in the flotation tests. This is due to using fire assays (FA) on the 1 st rougher concentrates, as the high grades exceeded the detection limits of the Atomic-Absorption (AA) method that was used for all other Ag assays. Inspectorate Metallurgical Division

20 Metallurgical testing report Golden Reign Resources San Albino Project 2 4 CONCLUSIONS AND RECOMMENDATIONS The San Albino samples generally responded well to gravity and flotation concentration. The diagnostic leach results show that Au extractions could exceed 8% in a carbon-in-leach (CIL) circuit, with the highest extraction observed on composite D at 89.3% CN-soluble gold. The gravity pre-concentration tests showed that 3-pass Au recoveries of 8.2 to 84.4% were achieved on composites A through C at a grind target P8 of 1µm. Gravity recovery of Au on composite D was lower, at around 52%. Gravity recoveries of Ag were found to be lower on all tests, in the range of 51.4 to 68.6% for composites A through C, and were found to be inconsistently sensitive with respect to grind size. All samples responded well to sulphide flotation, with gold recoveries in the range of 76.6 to 85.5% attained on tests at the finer grind size target of P 8 75µm and after 8 minutes of flotation. Recoveries of Ag were in the range of 6-69% while Pb and Zn recoveries were quite poor, in the range of 6. to 35%. The size analysis on the tailings from the tests which yielded the best results indicate that, in general, gold losses were predominantly in the finer fractions on the gravity tails and cyanide leach residues, and in the coarse fractions on the rougher flotation tails. Sequential gravity-flotation testing on composite D as well as a combined 5/5 composite made of A and B material resulted in total recoveries of 96.4% Au and 92.6% Ag for composite AB and 84.3% Au and 86.8% Ag for composite D. It is recommended to pursue this processing route for further optimization and to investigate upgrading of the concentrate grades. Inspectorate Metallurgical Division

21 METALLURGICAL TESTING OF SAMPLES FROM THE GOLDEN REIGN RESOURCES, SAN ALBINO PROJECT APPENDIX I SAMPLE RECEIVING AND PREPARATION LOG Page Sample Description 1 Sample Receiving Logs 2

22 1 Sample Description: A shipment consisting of 14 sample bags containing combination of rock samples and assay rejects, with a total weight of 177 kg was received on February 13, 213 via the courier DHL. The samples were received into inventory, air dried and separated into four (4) composites, designated A, B, C and D. As composite samples A to C were already crushed to 6 mesh, only composite D needed to be crushed to 6 mesh. The composite samples were then mixed and split into the required samples for testing. The receiving log sheets are attached on page 2.

23 SAMPLE RECEIVING LOG SHEET 2 Receiving Date: 13-Feb-13 Project No: 1312 Carrier: DHL Receiver: Joe Soe Page: 1 of 1 Count Container Type Sample Type (C, R, P, Sl, S) Wet /Dry Top Size Weight (kg) 1 Sack-5, Pail 14/14 Pail, Rice bag R D 5" Sack-4, Pail 14/13 Pail, Rice bag R D 5" Sack-3, Pail 14/12 Pail, Rice bag R D 5" Sack-2, Pail 14/11 Pail, Rice bag R D 5" 9. 5 Sack-1, Pail 14/1 Pail, Rice bag R D 6" Sack-3, Pail 14/9 Pail, Rice bag R D 6M Sack-2, Pail 14/8 Pail, Rice bag R D 6M Sack-1, Pail 14/7 Pail, Rice bag R D 6M Sack-3, Pail 14/6 Pail, Rice bag R D 6M Sack-2, Pail 14/5 Pail, Rice bag R D 6M Sack-1, Pail 14/4 Pail, Rice bag R D 6M Sack-3, Pail 14/3 Pail, Rice bag R D 6M Sack-2, Pail 14/2 Pail, Rice bag R D 6M Sack-1, Pail 14/1 Pail, Rice bag R D 6M Sample Label Location: Note : Core, Rock, Pulp, Slurry, Solution

24 METALLURGICAL TESTING OF SAMPLES FROM THE GOLDEN REIGN RESOURCES, SAN ALBINO PROJECT APPENDIX II TEST RESULTS and BALANCES Test Comp. / P 8 (µm) Data Page DL1 A Cyanide Leaching Metallurgical 1 Balance DL2 B Cyanide Leaching Metallurgical 2 Balance DL3 C Cyanide Leaching Metallurgical 3 Balance DL4 D Cyanide Leaching Metallurgical 4 Balance C1 A / 15µm Cyanide Leaching Metallurgical 5 Balance C2 A / 16µm Cyanide Leaching Metallurgical 6 Balance C3 A / 74µm Cyanide Leaching Metallurgical 7 Balance C4 B / 15µm Cyanide Leaching Metallurgical 8 Balance C5 B / 16µm Cyanide Leaching Metallurgical 9 Balance C6 B / 74µm Cyanide Leaching Metallurgical 1 Balance C7 C / 15µm Cyanide Leaching Metallurgical 11 Balance C8 C / 16µm Cyanide Leaching Metallurgical 12 Balance C9 C / 74µm Cyanide Leaching Metallurgical 13 Balance C1 D / 15µm Cyanide Leaching Metallurgical 14 Balance

25 TEST RESULTS and BALANCES (con t) Test Comp. / P 8 (µm) Data Page C11 D / 16µm Cyanide Leaching Metallurgical 15 Balance C12 D / 74µm Cyanide Leaching Metallurgical 16 Balance G1 A 2µm Centrifugal Gravity Concentration 17 Metallurgical Balance G2 A 1µm Centrifugal Gravity Concentration 18 Metallurgical Balance G3 B 2µm Centrifugal Gravity Concentration 19 Metallurgical Balance G4 B 1µm Centrifugal Gravity Concentration 2 Metallurgical Balance G5 C 2µm Centrifugal Gravity Concentration 21 Metallurgical Balance G6 C 1µm Centrifugal Gravity Concentration 22 Metallurgical Balance G7 D 2µm Centrifugal Gravity Concentration 23 Metallurgical Balance G8 D 1µm Centrifugal Gravity Concentration 24 Metallurgical Balance F1 A / 15 Flotation Metallurgical Balance 25 Testing Parameters 26 F2 A / 16 Flotation Metallurgical Balance 27 Testing Parameters 28 F3 A / 74 Flotation Metallurgical Balance 29 Testing Parameters 3 F4 B / 15 Flotation Metallurgical Balance 31 Testing Parameters 32 F5 B / 16 Flotation Metallurgical Balance 33 Testing Parameters 34 F6 B / 74 Flotation Metallurgical Balance 35 Testing Parameters 36 F7 C / 15 Flotation Metallurgical Balance 37 Testing Parameters 38 F8 C / 16 Flotation Metallurgical Balance 39 Testing Parameters 4 F9 C / 74 Flotation Metallurgical Balance 41 Testing Parameters 42

26 TEST RESULTS and BALANCES (con t) Test Comp. / P 8 (µm) Data Page F1 D / 15 Flotation Metallurgical Balance 43 Testing Parameters 44 F11 D / 16 Flotation Metallurgical Balance 45 Testing Parameters 46 F12 D / 74 Flotation Metallurgical Balance 47 Testing Parameters 48 SA1 A / 1 G2 tails Size-by-assay Analysis 49 SA2 A / 16 C2 tails Size-by-assay Analysis 5 SA3 A / 74 F3 tails Size-by-assay Analysis 51 SA4 B / 1 G4 tails Size-by-assay Analysis 52 SA5 B / 74 C6 tails Size-by-assay Analysis 53 SA6 B / 74 F6 tails Size-by-assay Analysis 54 SA7 C / 1 G6 tails Size-by-assay Analysis 55 SA8 C / 16 C8 tails Size-by-assay Analysis 56 SA9 C / 74 F9 tails Size-by-assay Analysis 57 SA1 D / 1 G8 tails Size-by-assay Analysis 58 SA11 D / 74 C12 tails Size-by-assay Analysis 59 SA12 D / 74 F12 tails Size-by-assay Analysis 6 GF1 AB / 74 Grav-Flot Metallurgical Balance 61 Testing Parameters 62 GF2 AB / 74 Grav-Flot Metallurgical Balance 63 Testing Parameters 64

27 DIAGNOSTIC LEACH REPORT 1 Date : 16-Apr-13 Test No: DL1 Project : 1312 Sample ID : Comp. A Initial sample weight : 268 g Au Ag Calculated grade : 3.92 g/t g/t Measured grade : g/t 3.48 g/t Assay Assay Volume Weight Au Au Ag Ag (ml) (g) (mg/l), (g/t) (mg) (mg/l), (g/t) (mg) Stage 1 - CIL leach CIL leach solution CIL leach carbon Stage 2 - Acetonitrile/Cyanide leach Acetonitrile/Cyanide leach PLS Stage 3 - Hydrochloric Acid Leach/CIL leach HCl leach PLS 195 < *CIL leach solution <.1.17 CIL leach carbon Stage 4 - FeCl3+HCL Leach/CIL leach FeCl3+HCl leach PLS 543 < *CIL leach solution <.1.17 *CIL leach carbon <1.1.7 *Assay of Stage 4 Carbon for Ag=<1.1; for the calculation.55g/t entered Stage 5 - Nitric Acid Leach/CIL leach HNO3 leach PLS CIL leach solution <.1.15 CIL leach carbon Final leach residue *Note: For Ag<.1 mg/l in leach solutions.5 mg/l was entered for calculations Distribution Distribution SUMMARY Au Au Ag Ag mg % mg % Stage 1 - Cyanide Soluble Stage 2 - Primarily associated with carbonaceous minerals Stage 3 - Primarily associated with calcite/dolomite/pyrrhotite minerals Stage 4 - Primarily associated with base metals sulphides (Labile sulphides) Stage 5 - Primarily associated with majority sulphides (Py,AsPy and Marcasite) Residue - Insoluble or associated with preg-robbing and other refractory minerals Total

28 DIAGNOSTIC LEACH REPORT 2 Date : 16-Apr-13 Test No: DL2 Project : 1312 Sample ID : Comp. B Initial sample weight : 268 g Au Ag Calculated grade : g/t 34.3 g/t Measured grade : g/t g/t Assay Assay Volume Weight Au Au Ag Ag (ml) (g) (mg/l), (g/t) (mg) (mg/l), (g/t) (mg) Stage 1 - CIL leach CIL leach solution CIL leach carbon Stage 2 - Acetonitrile/Cyanide leach Acetonitrile/Cyanide leach PLS Stage 3 - Hydrochloric Acid Leach/CIL leach HCl leach PLS 195 < *CIL leach solution <.1.17 CIL leach carbon Stage 4 - FeCl3+HCL Leach/CIL leach FeCl3+HCl leach PLS 543 < *CIL leach solution <.1.17 CIL leach carbon Stage 5 - Nitric Acid Leach/CIL leach HNO3 leach PLS *CIL leach solution <.1.15 CIL leach carbon Final leach residue* *Note: For Ag<.1 mg/l in leach solutions.5 mg/l was entered for calculations Distribution Distribution SUMMARY Au Au Ag Ag mg % mg % Stage 1 - Cyanide Soluble Stage 2 - Primarily associated with carbonaceous minerals Stage 3 - Primarily associated with calcite/dolomite/pyrrhotite minerals Stage 4 - Primarily associated with base metals sulphides (Labile sulphides) Stage 5 - Primarily associated with majority sulphides (Py,AsPy and Marcasite) Residue - Insoluble or associated with preg-robbing and other refractory minerals Total

29 DIAGNOSTIC LEACH REPORT 3 Date : 16-Apr-13 Test No: DL3 Project : 1312 Sample ID : Comp. C Initial sample weight : 268 g Au Ag Calculated grade : 4.84 g/t 5.65 g/t Measured grade : 6.25 g/t 6.7 g/t Assay Assay Volume Weight Au Au Ag Ag (ml) (g) (mg/l), (g/t) (mg) (mg/l), (g/t) (mg) Stage 1 - CIL leach *CIL leach solution <.1.19 CIL leach carbon Stage 2 - Acetonitrile/Cyanide leach Acetonitrile/Cyanide leach PLS Stage 3 - Hydrochloric Acid Leach/CIL leach HCl leach PLS 161 < *CIL leach solution <.1.15 CIL leach carbon Stage 4 - FeCl3+HCL Leach/CIL leach FeCl3+HCl leach PLS 397 < *CIL leach solution <.1.17 *CIL leach carbon <1.1.5 Stage 5 - Nitric Acid Leach/CIL leach HNO3 leach PLS <.1.36 *CIL leach solution <.1.15 CIL leach carbon Final leach residue *Note: For Ag<.1 mg/l in leach solutions.5 mg/l was entered for calculations Distribution Distribution SUMMARY Au Au Ag Ag mg % mg % Stage 1 - Cyanide Soluble Stage 2 - Primarily associated with carbonaceous minerals Stage 3 - Primarily associated with calcite/dolomite/pyrrhotite minerals Stage 4 - Primarily associated with base metals sulphides (Labile sulphides) Stage 5 - Primarily associated with majority sulphides (Py,AsPy and Marcasite) Residue - Insoluble or associated with preg-robbing and other refractory minerals Total

30 DIAGNOSTIC LEACH REPORT 4 Date : 16-Apr-13 Test No: DL4 Project : 1312 Sample ID : Comp. D Initial sample weight : 268 g Au Ag Calculated grade : 6.16 g/t 17.8 g/t Measured grade : 3.91 g/t 15.2 g/t Assay Assay Volume Weight Au Au Ag Ag (ml) (g) (mg/l), (g/t) (mg) (mg/l), (g/t) (mg) Stage 1 - CIL leach *CIL leach solution <.1.2 CIL leach carbon Stage 2 - Acetonitrile/Cyanide leach Acetonitrile/Cyanide leach PLS Stage 3 - Hydrochloric Acid Leach/CIL leach HCl leach PLS CIL leach solution <.1.17 CIL leach carbon <1.1.5 Stage 4 - FeCl3+HCL Leach/CIL leach FeCl3+HCl leach PLS 413 <.1.2 <.1.21 CIL leach solution <.1.16 CIL leach carbon <1.1.5 Stage 5 - Nitric Acid Leach/CIL leach HNO3 leach PLS <.1.37 CIL leach solution <.1.17 CIL leach carbon <1.1.5 Final leach residue *Note: For Ag<.1 mg/l in leach solutions.5 mg/l was entered for calculations Distribution Distribution SUMMARY Au Au Ag Ag mg % mg % Stage 1 - Cyanide Soluble Stage 2 - Primarily associated with carbonaceous minerals Stage 3 - Primarily associated with calcite/dolomite/pyrrhotite minerals Stage 4 - Primarily associated with base metals sulphides (Labile sulphides) Stage 5 - Primarily associated with majority sulphides (Py,AsPy and Marcasite) Residue - Insoluble or associated with preg-robbing and other refractory minerals Total

31 CYANIDATION TEST REPORT 5 Date: 17-Apr-13 Test: C1 Project: 1312 Sample: Composite A Objective: 72 hours bottle roll cyanide leach in.5 g/l NaCN at 3 different grind sizes TEST CONDITIONS TEST DESCRIPTION Solids: 1,999 g - repulped to 4% solids Solution: 3, g - adjusted to and maintained ph 1.5 Solids: 4 % - adjusted to and maintained at.5g/l NaCN Grind Size - P 8: 142 µm - sampled at 2,4,7,24 and 48 hours Initial NaCN:.5 g/l - test ended after 72 hours Target ph: filtered and displacement washed with hot cyanide solution Test Duration: 72 hours followed by two hot water displacement washes - solution and solids assayed for Au, Ag content HEAD GRADE Au Ag Calculated Total: 27. g/t 32.5 g/t Measured Total: 29.9 g/t 3.5 g/t LEACH TEST DATA Time NaCN Lime ph do 2 Slurry Solution Weight Vol. Assay Vol. Au Ag (hours) (g/l) (g) (g) before after (mg/l) (g) (ml) (ml) (mg/l) (mg) (mg/l) (mg) , 3, ,4 3, , 3, ,998 2, ,996 2, ,99 2, ,988 2, Total SOLIDS Time Total Residue Weight Au Ag (hours) (g) (g/t) (mg) (g/t) (mg) 72 1, CYANIDATION RESULTS Time Distribution Reagent Consumption Reducing Power Au Ag NaCN Ca(OH) 2.1 N KMnO 4 /L (hours) (%) (%) (kg/t) (kg/t) (ml) Residue Total 1. 1.

32 CYANIDATION TEST REPORT 6 Date: 17-Apr-13 Test: C2 Project: 1312 Sample: Composite A Objective: 72 hours bottle roll cyanide leach in 1 g/l NaCN as sample received from client TEST CONDITIONS TEST DESCRIPTION Solids: 2,1 g - repulped to 4% solids Solution: 3, g - adjusted to and maintained ph 1.5 Solids: 4 % - adjusted to and maintained at.5g/l NaCN Grind Size - P 8: 13 µm - sampled at 2,4,7,24 and 48 hours Initial NaCN:.5 g/l - test ended after 72 hours Target ph: filtered and displacement washed with hot cyanide solution Test Duration: 72 hours followed by two hot water displacement washes - solution and solids assayed for Au, Ag content HEAD GRADE Au Ag Calculated Total: 26. g/t 32.5 g/t Measured Total: 29.9 g/t 3.5 g/t LEACH TEST DATA Time NaCN Lime ph do 2 Slurry Weight Vol. Assay Vol. Au Ag (hours) (g/l) (g) (g) before after (mg/l) (g) (ml) (ml) (mg/l) (mg) (mg/l) (mg) , 2, ,998 2, ,2 3, ,998 2, ,99 2, ,988 2, ,986 2, Total SOLIDS Time Total Residue Weight Au Ag (hours) (g) (g/t) (mg) (g/t) (mg) 72 2, CYANIDATION RESULTS Solution Time Distribution Reagent Consumption Reducing Power Au Ag NaCN Ca(OH) 2.1 N KMnO 4 /L (hours) (%) (%) (kg/t) (kg/t) (ml) Residue Total 1. 1.

33 CYANIDATION TEST REPORT 7 Date: 17-Apr-13 Test: C3 Project: 1312 Sample: Composite A Objective: 72 hours bottle roll cyanide leach in 1 g/l NaCN as sample received from client TEST CONDITIONS TEST DESCRIPTION Solids: 2, g - repulped to 4% solids Solution: 3, g - adjusted to and maintained ph 1.5 Solids: 4 % - adjusted to and maintained at.5g/l NaCN Grind Size - P 8: 86 µm - sampled at 2,4,7,24 and 48 hours Initial NaCN:.5 g/l - test ended after 72 hours Target ph: filtered and displacement washed with hot cyanide solution Test Duration: 72 hours followed by two hot water displacement washes - solution and solids assayed for Au, Ag content HEAD GRADE Au Ag Calculated Total: 27.5 g/t 32.1 g/t Measured Total: 29.9 g/t 3.5 g/t LEACH TEST DATA Time NaCN Lime ph do 2 Slurry Solution Weight Vol. Assay Vol. Au Ag (hours) (g/l) (g) (g) before after (mg/l) (g) (ml) (ml) (mg/l) (mg) (mg/l) (mg) , 3, ,998 2, ,2 3, ,998 2, ,994 2, ,994 2, ,986 2, Total SOLIDS Time Total Residue Weight Au Ag (hours) (g) (g/t) (mg) (g/t) (mg) 72 2, CYANIDATION RESULTS Time Distribution Reagent Consumption Reducing Power Au Ag NaCN Ca(OH) 2.1 N KMnO 4 /L (hours) (%) (%) (kg/t) (kg/t) (ml) Residue Total 1. 1.

34 CYANIDATION TEST REPORT 8 Date: 17-Apr-13 Test: C4 Project: 1312 Sample: Composite B Objective: 72 hours bottle roll cyanide leach in 1 g/l NaCN as sample received from client TEST CONDITIONS TEST DESCRIPTION Solids: 1,999 g - repulped to 4% solids Solution: 3, g - adjusted to and maintained ph 1.5 Solids: 4 % - adjusted to and maintained at.5g/l NaCN Grind Size - P 8: 15 µm - sampled at 2,4,7,24 and 48 hours Initial NaCN:.5 g/l - test ended after 72 hours Target ph: filtered and displacement washed with hot cyanide solution Test Duration: 72 hours followed by two hot water displacement washes - solution and solids assayed for Au, Ag content HEAD GRADE Au Ag Calculated Total: 14.3 g/t 37.3 g/t Measured Total: 13.7 g/t 29.8 g/t LEACH TEST DATA Time NaCN Lime ph do 2 Slurry Solution Weight Vol. Assay Vol. Au Ag (hours) (g/l) (g) (g) before after (mg/l) (g) (ml) (ml) (mg/l) (mg) (mg/l) (mg) , 3, ,996 2, ,2 3, , 3, ,996 2, ,992 2, ,99 2, Total SOLIDS Time Total Residue Weight Au Ag (hours) (g) (g/t) (mg) (g/t) (mg) 72 1, CYANIDATION RESULTS Time Distribution Reagent Consumption Reducing Power Au Ag NaCN Ca(OH) 2.1 N KMnO 4 /L (hours) (%) (%) (kg/t) (kg/t) (ml) Residue Total 1. 1.

35 CYANIDATION TEST REPORT 9 Date: 17-Apr-13 Test: C5 Project: 1312 Sample: Composite B Objective: 72 hours bottle roll cyanide leach in 1 g/l NaCN as sample received from client TEST CONDITIONS TEST DESCRIPTION Solids: 2, g - repulped to 4% solids Solution: 3, g - adjusted to and maintained ph 1.5 Solids: 4 % - adjusted to and maintained at.5g/l NaCN Grind Size - P 8: 14 µm - sampled at 2,4,7,24 and 48 hours Initial NaCN:.5 g/l - test ended after 72 hours Target ph: filtered and displacement washed with hot cyanide solution Test Duration: 72 hours followed by two hot water displacement washes - solution and solids assayed for Au, Ag content HEAD GRADE Au Ag Calculated Total: 14.6 g/t 37.7 g/t Measured Total: 13.7 g/t 29.8 g/t LEACH TEST DATA Time NaCN Lime ph do 2 Slurry Solution Weight Vol. Assay Vol. Au Ag (hours) (g/l) (g) (g) before after (mg/l) (g) (ml) (ml) (mg/l) (mg) (mg/l) (mg) , 3, ,4 3, , 3, ,996 2, ,998 2, ,992 2, ,984 2, Total SOLIDS Time Total Residue Weight Au Ag (hours) (g) (g/t) (mg) (g/t) (mg) 72 2, CYANIDATION RESULTS Time Distribution Reagent Consumption Reducing Power Au Ag NaCN Ca(OH) 2.1 N KMnO 4 /L (hours) (%) (%) (kg/t) (kg/t) (ml) Residue Total 1. 1.

36 CYANIDATION TEST REPORT 1 Date: 17-Apr-13 Test: C6 Project: 1312 Sample: Composite B Objective: 72 hours bottle roll cyanide leach in 1 g/l NaCN as sample received from client TEST CONDITIONS TEST DESCRIPTION Solids: 2, g - repulped to 4% solids Solution: 3, g - adjusted to and maintained ph 1.5 Solids: 4 % - adjusted to and maintained at.5g/l NaCN Grind Size - P 8: 92 µm - sampled at 2,4,7,24 and 48 hours Initial NaCN:.5 g/l - test ended after 72 hours Target ph: filtered and displacement washed with hot cyanide solution Test Duration: 72 hours followed by two hot water displacement washes - solution and solids assayed for Au, Ag content HEAD GRADE Au Ag Calculated Total: 14.4 g/t 38.6 g/t Measured Total: 13.7 g/t 29.8 g/t LEACH TEST DATA Time NaCN Lime ph do 2 Slurry Solution Weight Vol. Assay Vol. Au Ag (hours) (g/l) (g) (g) before after (mg/l) (g) (ml) (ml) (mg/l) (mg) (mg/l) (mg) , 3, ,996 2, ,998 2, ,996 2, ,12 3, ,99 2, ,99 2, Total SOLIDS Time Total Residue Weight Au Ag (hours) (g) (g/t) (mg) (g/t) (mg) 72 2, CYANIDATION RESULTS Time Distribution Reagent Consumption Reducing Power Au Ag NaCN Ca(OH) 2.1 N KMnO 4 /L (hours) (%) (%) (kg/t) (kg/t) (ml) Residue Total 1. 1.

37 CYANIDATION TEST REPORT 11 Date: 17-Apr-13 Test: C7 Project: 1312 Sample: Composite C Objective: 72 hours bottle roll cyanide leach in 1 g/l NaCN as sample received from client TEST CONDITIONS TEST DESCRIPTION Solids: 2, g - repulped to 4% solids Solution: 3, g - adjusted to and maintained ph 1.5 Solids: 4 % - adjusted to and maintained at.5g/l NaCN Grind Size - P 8: 144 µm - sampled at 2,4,7,24 and 48 hours Initial NaCN:.5 g/l - test ended after 72 hours Target ph: filtered and displacement washed with hot cyanide solution Test Duration: 72 hours followed by two hot water displacement washes - solution and solids assayed for Au, Ag content HEAD GRADE Au Ag Calculated Total: 6.2 g/t 7. g/t Measured Total: 6.3 g/t 6.7 g/t LEACH TEST DATA Time NaCN Lime ph do 2 Slurry Solution Weight Vol. Assay Vol. Au* Ag (hours) (g/l) (g) (g) before after (mg/l) (g) (ml) (ml) (mg/l) (mg) (mg/l) (mg) , 3, , 3, , 3, ,998 2, ,99 2, ,988 2, ,972 2, Total SOLIDS Time Total Residue Weight Au Ag (hours) (g) (g/t) (mg) (g/t) (mg) 72 2, CYANIDATION RESULTS Time Distribution Reagent Consumption Reducing Power Au Ag NaCN Ca(OH) 2.1 N KMnO 4 /L (hours) (%) (%) (kg/t) (kg/t) (ml) Residue Total 1. 1.