PRE-FEASIBILITY METALLURGICAL TESTING GOLIATH GOLD PROJECT TREASURY METALS INCORPORATED KM2906. June 1, 2011

Transcription

1 PRE-FEASIBILITY METALLURGICAL TESTING GOLIATH GOLD PROJECT TREASURY METALS INCORPORATED KM2906 June 1, 2011 G&T METALLURGICAL SERVICES LTD Bowers Place, Kamloops, B.C. Canada V1S 1W5 Website: ISO 9001:2008 Certificate No. FS 63170

2 June 1, 2011 Mr. Andrew Cheatle Vice President Exploration Treasury Metals Inc. 130 King Street West Suite 3680 Toronto, ON M5X 1B1 Dear Mr. Cheatle; Re: Pre-feasibility Metallurgical Testing Goliath Gold Project KM2906 We are pleased to report that we have completed the scoping level metallurgical test program on a master composite sample from the Goliath Gold Project. We investigated the application of two flowsheets for gold recovery from a master composite sample with a measured gold content of 3.5 g/tonne. The silver feed grade was 25 g/tonne. The two flowsheets investigated included; gravity concentration followed by cyanidation of the gravity tailing and gravity concentration followed by flotation of the gravity tailing followed by cyanidation of the flotation concentrate. The gravity plus cyanidation of gravity tailing produced overall gold recoveries of between 96 to 97 percent across a range of conditions tested. Gold extractions appeared relatively insensitive to primary grind sizing and target sodium cyanide concentration in the range tested for these variables. At a target sodium cyanide concentration of 500 ppm, sodium cyanide consumption was 0.2 kg/tonne. Associated lime consumption estimates were 0.6 kg/tonne.

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4 PRE-FEASIBILITY METALLURGICAL TESTING GOLIATH GOLD PROJECT DRYDEN, ONTARIO KM2906 June 1, 2011 Work Performed on Behalf of Treasury Metals Inc.

5 INDEX PAGE 1.0 Introduction Properties of Master Composite Chemical Content Mineral Content and Liberation Ore Hardness Metallurgical Test Results The Flowsheets The Test Results Ancillary Testing ADIS Results Settling Test Results Conclusions and Recommendations...17

6 1 1.0 Introduction Treasury Metals Incorporated is currently investigating the technical and economic feasibility of its flagship project; Goliath Gold Project, located near Dryden, Ontario, Canada. The company reports that the project is an advanced stage, high grade gold deposit with an NI compliant resource of over one million ounces of gold. They note the potential also exists for additional silver, lead, and zinc credits. Mr. Andrew Cheatle, Vice President of Exploration for Treasury Metals Incorporated, contacted G&T Metallurgical Services Ltd. and requested a proposal to carry out metallurgical testing on a master composite sample from the property. A proposal was sent to Mr. Cheatle via on January 13, 2011 and, upon some minor revision, the proposal was accepted. The main objectives of this test program can be summarized by the following points: Determine the mineral content and fragmentation properties for Master Composite 1 using the Bulk Mineral Analysis with Liberation (BMAL) feature within QEMSCAN. Determine gold and silver metallurgical response using either a gravity/cyanidation or gravity/flotation flowsheet. Carry out some preliminary optimization testing using the flowsheet that produces the most favourable gold metallurgical performance. Investigate the master composite ore hardness by carrying out a standard Bond ball mill work index test.

7 2 The samples, used to construct Master Composite 1, were received at G&T Metallurgical Services Ltd. on February 21, The samples were received in the form of half diamond drill core. Thirty individual core samples were included in the shipment. The estimated shipment weight was 59 kilograms. The first metallurgical test, a gravity concentration test, was conducted on March 11, The final metallurgical test was completed on May 4, 2011, and the program concluded the week of May 16, 2011 with completion of ADIS analysis and a settling test on a cyanidation residue. The main findings from this test program are presented in the main body of this report. Individual test results and supporting data may be found in any one of the following appendices of information which are presented as follows: Appendix I Sample Origin Appendix II Metallurgical Test Data Appendix III Particle Sizing Data Appendix IV Comminution Data Appendix V Special Data Appendix VI Mineralogical Data Appendix VII ADIS Analysis Data

8 3 2.0 Properties of Master Composite 1 Sample properties such as chemical and mineral contents, mineral fragmentation, and ore hardness play an important role in process flowsheet development. These properties for the Goliath Gold Master Composite 1 are discussed in more detail in the following sub-sections. 2.1 Chemical Content The chemical content data in the Master Composite 1 was determined using standard analytical techniques. The chemical content data is presented in Table 1. TABLE 1 CHEMICAL CONTENT DATA Sample Name Element for Assay percent or g/tonne Cu Pb Zn Fe S Ag Au Master Composite Note: Au and Ag assays are reported in g/tonne, all others are reported in percent. The gold content in the feed for Master Composite 1 was estimated at 3.5 g/tonne. There was some difficulty in measuring the feed gold content due to the presence of the coarse gold in the sample. Pulp metallic assays were eventually used to get better agreement between duplicate head assay cuts. The silver content in the feed was measured at about 25 g/tonne. The copper, lead, and zinc contents were all relatively low at less than 0.1 percent in the Master Composite 1. The zinc concentration in the feed the was most elevated concentration of the three metals.

9 4 PHOTOMICROGRAPH 1 GOLIATH GOLD MASTER COMPOSITE 1 KM2906 <75>37µm Gn Cp Gn <75>37µm Gn Py Py Gn Sp *Cp-Chalcopyrite, Sp-Sphalerite, Py-Pyrite, Gn-Gangue

10 5 2.2 Mineral Content and Liberation The mineral content and preliminary mineral fragmentation data were acquired by completing a QEMSCAN Bulk Mineral Analysis with Liberation (BMAL) on Master Composite 1. The BMAL data are presented in Figure 1 and are further discussed in the following key points: The total sulphide mineral content, in Master Composite 1, accounted for about 2.1 percent of the sample mass. The majority of sulphide minerals present, in order of abundance, were pyrite and pyrrhotite. About 10 percent of the sulphide mineral was present as pyrrhotite. Pyrrhotite can become quite reactive in cyanidation leaching, especially in summer when pulp temperatures become quite warm *. No silver minerals were observed during the mineralogical analysis. The concentration of silver in the feed was relatively low to allow for observation of the carrier minerals. It is also possible that silver may be tied up in the structure of a mineral like tetrahedrite. More in-depth analyses will be required to determine the silver deportment. The dominant non-sulphide gangue minerals present in Master Composite 1, in order of abundance, were; quartz (56 percent), micas (22 percent), and feldspars (17 percent). Minor amounts of chlorites and iron oxides were also observed. * No negative impacts of this nature were noted during the testing phase of the program.

11 6 FIGURE 1A THE MINERAL COMPOSITION AND ELEMENTAL DEPORTMENT Master Composite 1 Mineral Composition Elemental Deportment Sulphide Mineral Mass (%) Non-Sulphide Mineral Mass (%) Copper Deportment Distribution (%) Sulphur Deportment Distribution (%) Cu Sulphides 0.05 Iron Oxides 0.09 Chalcopyrite 57.6 Cu Sulphides 1.51 Galena 0.04 Quartz 55.6 Covellite 16.0 Galena 0.6 Sphalerite 0.13 Feldspars 16.7 Tetrahedrite 26.4 Sphalerite 4.2 Pyrite 1.65 Micas 22.2 Pyrite 86.2 Pyrrhotite 0.20 Chlorite 0.71 Pyrrhotite 7.5 Other Gangue 2.65 Total 2.08 Total 97.9 Total 100 Total 100 Note: 1) Copper Sulphides includes: Chalcopyrite, Covellite and Tetrahedrite. 2) Iron Oxides includes: Magnetite, Hematite, Goethite and Limonite. 3) Other Gangue includes: Epidote, Ti Group Minerals, Tourmaline, Apatite, Amphibole Group and Calcite. See Appendix IV for details. 100 FIGURE 1C MINERAL DISTRIBUTION BY CLASS OF ASSOCIATION Master Composite 1, 105µm K Mineral Distribution By Class (WT. %) Multiphase Binary - Py/Po Binary - Ga Liberated Binary - Gn Binary - Sp Binary - Cs 0 Copper Sulphides Galena Spalerite Pyrite/Pyrrhotite Gangue

12 7 2.3 Ore Hardness A preliminary measure of ore hardness was made using the standard F.C. Bond ball mill work index test. A single Bond ball mill work index test was completed on Master Composite 1 and the results are presented in Table 2. TABLE 2 BOND BALL MILL WORK INDEX DATA Sample Name Bond ball mill work index kwh/ton kwh/tonne Master Composite Note: The standard F.C. Bond ball mill work index test is done using a closing sieve size of 106 m K 80. The result of a single Bond ball mill work index test revealed Master Composite 1 has a Bond ball mill work index value of 11.1 kwh/tonne. On the basis of this result, the sample tested can be considered to be relatively soft with respect to energy requirements for breakage in a ball mill.

13 8 PHOTOMICROGRAPH 2 GOLIATH GOLD PAN CONCENTRATE OF MASTER COMPOSITE 1 Test 8 KM2906 Unsized Au Py Gn Unsized Py Au *Au-Gold, Py-Pyrite, Gn-Gangue

14 9 3.0 Metallurgical Test Results Two principal flowsheets were evaluated in the current test program. The flowsheets combined unit operations that involved gravity concentration, flotation, and cyanidation. Tests that mirror each of these unit operations were utilized to evaluate the principal flowsheets. 3.1 The Flowsheets The flowsheets used in this test program are presented in Figure 2. A summary of the key features of the flowsheet and the principal test conditions are discussed further below: The primary grind sizing, for flowsheet 1, was varied between 100 to 150 m K 80. Once the primary grind sizing was established, additional tests were carried out at variable sodium cyanide concentrations ranging from 500 to 1,000 ppm. The ph in the cyanidation circuit was maintained at For flowsheet 2, the primary grind sizing was maintained at 105 m K 80. The gravity circuit tailing was subjected to open circuit rougher flotation. Potassium Amyl Xanthate (PAX) was used as the sulphide mineral collector in the rougher circuit. The rougher circuit ph was maintained at about 8.0 through eight minutes of rougher flotation. The rougher concentrate was then treated in a 48 hour bottle roll cyanidation test at a target sodium cyanide concentration of 2,000 ppm and a pulp ph of 11.0.

15 10 FIGURE 2 FLOWSHEET AND TEST CONDITIONS Flowsheet 1 Gravity-Cyanidation ( Tests 1-6,8-9,11-12) Feed Knelson Tail µm K80 Knelson Con 2 hr 6 hr 24 hr 48 hr Leach Liquor Tailings Pan Tail Pan Con Flowsheet 2 Gravity-Flotation-Cyanidation ( Tests 7,10,13) Feed Knelson Tail Rougher Tail 105µm K80 Knelson Con Bulk Con Pan Tail Pan Con 2 hr 6 hr 24 hr 48 hr Leach Liquor Tailings

16 The Test Results As noted in previous sections, metallurgical testing focused on assessment of metallurgical performance for two flowsheets, featuring gravity concentration, flotation, and cyanidation unit operations. The results of the tests are presented in summary format in Figure 3. The presented data is further discussed as follows: The feed gold in the Master Composite 1 was very amenable to recovery by gravity concentration and cyanidation techniques. It was possible to recover about 96 to 97 percent of the feed gold to a pan concentrate and 48 hour leach solution upon cyanidation of the gravity tailing. The overall gold recovery did not appear to be very sensitive to either primary grind sizing or target sodium cyanide concentration in the ranges tested. On the basis of this testing, about 96 percent of the feed gold can be recovered at a primary grind sizing of 105 m K 80 and target NaCN concentration of 500 ppm. Further testing should be undertaken to see if the primary grind sizing could be coarsened at 500 ppm sodium cyanide concentration. Sodium cyanide and lime consumptions are projected at 0.2 and 0.6 kg/tonne, respectively. The gravity/flotation and cyanidation of flotation concentrate flowsheet had about 6 percent lower gold overall recoveries compared with the gravity cyanidation flowsheet. Overall silver recoveries were, however, about 18 percent higher due to higher silver extractions from the flotation concentrate.

17 12 Gold Extraction (percent) FIGURE 3 METALLURGICAL TEST RESULTS Gravity Test Results Pan Concentrate Pan Tail Knelson Tail Test Assay g/t Dist % Assay g/t Dist % Assay g/t Dist % Au Ag Au Ag Au Ag Au Ag Au Ag Au Ag Test 2- PG= 105 µm K80 Test 3- PG= 105 µm K80 Test 5- PG= 125 µm K80 48 Hour Gold and Silver Extractions Silver Extraction (percent) 100 Test 6- PG= 68 µm K80 Test 9- PG= 144 µm K80 Test 11- PG= 105 µm K80, 1000 ppm NaCN 20 Test 12- PG= 105 µm K80, 500 ppm NaCN Test 13- No Regrind,2000 ppm NaCN Time (Hours) Test 2- PG= 105 µm K80 Test 3- PG= 105 µm K80 Test 5- PG= 125 µm K80 Test 6- PG= 68 µm K80 Test 9- PG= 144 µm K80 Test 11- PG= 105 µm K80, 1000 ppm NaCN Test 12- PG= 105 µm K80, 500 ppm NaCN Test 13- No Regrind,2000 ppm NaCN Time (Hours) Note: Test 1 CN feed was the Knelson Tail only,test 3,5,6,9,11,and 12 had the Knelson and Pan tail blended as CN feed. The CN feed for Test 13 was the rougher cocnetrate produced in Test 10. All tests, other than 11 and 12 were run at 2000 ppm NaCN. Gravity CN Primary NaCN Test Test Grind Conc. Overall Gravity/Cyanidation Gold and Silver Extractions Metal Recovery * Gravity Conc. **48 Hr CN Soln. No. No. µm K 80 ppm Au (%) Ag(%) Au (%) Ag(%) Au (%) Ag(%) NaCN Lime * with respect to gravity feed,**- with respect to CN feed, ***-with respect to gravity feed Grav/Float CN Primary NaCN Test Test Grind Conc. ***Overall Overall Gravity/Flotation/Cyanidation Gold and Silver Extractions Metal Recovery Reagent Cons.kg/t * Gravity Conc. **Flotation Conc. ***48 Hr CN Soln. ****Overall No. No. µm K 80 ppm Au (%) Ag(%) Au (%) Ag(%) Au (%) Ag(%) NaCN Lime * with respect to gravity feed,**- with respect to Gravityfeed, ***-with respect to CN feed, **** with respect to gravity feed

18 Ancillary Testing Automated Digital Imaging System (ADIS) analyses were completed on a sample of gravity concentrate to investigate the mode of occurrence in visible gold particles. A settling test was also conducted on a cyanidation test residue to investigate the settling properties for the Master Composite 1 tailing. 4.1 ADIS Results A summary of the ADIS scan results, along with a photomicrograph, are presented in Figure 4. The findings can be summarized by the following comments: A total of 35 gold occurrences were observed in the Test 8 gravity concentrate. Of these, about 60 percent were observed to be gold particles in binary form with pyrite. About 37 percent of the observed gold occurrences were seen to be liberated. By definition, particles containing more than 95 percent gold by area were classified as liberated. A small proportion of the observed gold occurrences were observed to be gold and non-sulphide gangue particles. These occurrences only accounted for about 3 percent of the observed gold occurrences in the Test 8 gravity concentrate. In general, the observed gold occurrences were dominated by coarser particles, either liberated or unliberated. This observation explains the good gravity and cyanidation performance.

19 14 FIGURE 4 THE STATUS OF GOLD IN THE TEST 8 PAN CONCENTRATE 3% Liberated Au Au-Py Au-Gn 60% 37% Number of Gold Occurences - 35 Average Gold Particle Size µm Notes: 1) Liberated Au - Particles containing more than 95% by area gold. Au-Py - Binary or Multiphase particles dominated by Pyrite. Au-Gn - Binary or Multiphase particlesdominated by non-sulphide gangue. 2) Detailed data can be located in Appendix V II- ADIS Data. Unsized PHOTOMICROGRAPH 3 GOLIATH GOLD PAN CONCENTRATE TEST 8 Gn Au Py *Au-Gold, Py-Pyrite, Gn-Gangue.

20 Settling Test Results A single settling test was conducted using the cyanidation residue from Test 11. The test was done using a solid weight of 150 grams in a standard 1,000 millilitres graduated cylinder. The solids specific gravity was measured at The pulp ph was maintained at 11.0 and 2 g/tonne of flocculent superfloc was added to the test. The Talmade-Fitch method was used to estimate the thickener area requirements at a final underflow density of 50 percent solids. The residue from Test 11 settled very well with a minimal flocculent addition. The estimated thickener area requirement was m 2 /day/tonne. Please note that this estimate area requirement is a rough estimated only and should not be used for engineering design purposes. More in depth settling tests will be required at the design stage of this project.

21 16 PHOTOMICROGRAPH 4 GOLIATH GOLD PAN CONCENTRATE OF MASTER COMPOSITE 1 Test 8 KM2906 Unsized Py Au Unsized Sp Au Gn Py *Au-Gold, Sp-Sphalerite, Py-Pyrite, Gn-Gangue.

22 Conclusions and Recommendations A preliminary metallurgical test program has been completed on a master composite sample from the Goliath Gold Project. The sample tested had a measured gold and silver feed grade of about 3.5 and 25 g/tonne, respectively. Minor concentrations, all below 0.1 percent, of copper, lead, and zinc were also present in the sample. The sulphide mineral content in the sample was about 2 percent. Most of the sulphide mineral was present as pyrite (about 90 percent) and pyrrhotite (about 10 percent). Traces of copper sulphides, galena, and sphalerite were also observed. The iron sulphide minerals were about 85 percent liberated, as estimated in twodimensions. A single standard F.C. Bond ball mill work index test revealed the Goliath sample to be relatively soft. The Bond ball mill work index was 11.1 kwh/tonne. Two alternate process flowsheets were investigated for processing the Goliath sample. Gravity concentration, followed by cyanidation of the gravity circuit tailing was one option. The other utilized gravity concentration, flotation of the gravity tailing, and cyanidation of the flotation concentrate. The gravity/cyanidation flowsheet produced the best overall metallurgical performance with between 96 to 97 percent gold recovery to the combined gravity concentrate and 48 hour cyanidation liquor. The primary grind sizing and target sodium cyanide concentration did not impact significantly on gold extractions in the range tested for these variables. Some additional testing is required to confirm the optimal primary grind sizing. It may be possible to coarsen beyond 100 m K 80.

23 18 At a target NaCN concentration of 500 ppm, sodium cyanide consumption was 0.2 kg/tonne, on the lower end of cyanide consumption for gold ores. Lime consumption was estimated at about 0.6 kg/tonne. The gravity/flotation/cyanidation flowsheet produced lower gold recoveries, estimated at about 90 percent. Silver recoveries were higher using this flowsheet, mainly due to higher cyanidation extractions from the flotation concentrate. A scoping level settling test was completed on the cyanidation residue form Test 11. The result was quite favorable, with an estimated thickener area requirement of m 2 /day/tonne. This figure should not be used for engineering design. Additional settling tests will be required to contain this number at the design stage for the project. No silver minerals were observed in the mineralogical analysis undertaken. More in-depth analyses using QEMSCAN or ADIS will be required to identify the deportment of silver in this ore. Silver deportment information may provide some clues as to the potential to improve silver extractions in leaching.

24 APPENDIX I KM2906 SAMPLE ORIGIN

25 1 1.0 Sample Origin The samples used in this test program were received at G&T Metallurgical Services Ltd. on February 21, The samples that arrived were in the form of half diamond drill core. A total of 30 discrete samples were received with a total estimated weight of 58.6 kilograms. The samples were combined, after bulk sample preparation, to construct a single master composite sample for metallurgical testing. The chemical contents of the Master Composite 1 were determined using standard analytical procedures. The results of these determinations are presented in Table I-1. TABLE I-1 CHEMICAL CONTENT DATA Sample Name Element for Assay percent or g/tonne Cu Pb Zn Fe S Au Ag Master Composite Note: Au and Ag assays are reported in g/tonne, all others are reported in percent. A listing of samples received and their respective weights are shown in Table I-2. All the samples were used to construct Master Composite 1. TABLE I-2 SAMPLES RECEIVED FEBRUARY 21, 2011 Sample Number Weight kg Sample Number Weight kg

26 APPENDIX II KM2906 FLOTATION TEST DATA

27 INDEX TEST PAGE 1 Gravity Test Master Composite Cyanidation Test Test 1 Knelson Tail 3 3 Cyanidation Test Test 1 Knelson and Pan Tail Blend 5 4 Gravity Test Master Composite Cyanidation Test Test 4 Knelson and Pan Tail Blend 9 6 Cyanidation Test Test 4 Knelson and Pan Tail Blend 11 7A Gravity Test Master Composite B Rougher Test Test 7A Gravity Tails 14 8 Gravity Test Master Composite Cyanidation Test Test 8 Knelson and Pan Tail Blend 18 10A Gravity Test Master Composite B Rougher Test Test 10A Gravity Tails Cyanidation Test Test 1 Knelson and Pan Tail Blend Cyanidation Test Test 1 Knelson and Pan Tail Blend Cyanidation Test Test 10 Bulk Rougher Concentrate 27

28 1 PROJECT NO: PURPOSE: PROCEDURE: KM To Produce a Gravity Concentrate. Perform a standard Knelson/Panning Technique. FEED: 10 kg Master Composite 1 ground to a nominal 105mm K 80. FLOWSHEET NO: 4 Stage Inlet Outlet Pressures Time Pressure Start Finish Minutes Grind 16 KN Separation

29 2 KM Master Composite 1 Overall Metallurgical Balance Product Weight Assay - percent or g/t Distribution - percent grams % Au Ag Au Ag Pan Con Pan Tail Knelson Tail Feed KM Master Composite 1 Cumulative Metallurgical Balance Cumulative Cum. Weight Assay - percent or g/t Distribution - percent Product grams % Au Ag Au Ag Product Product 1 to Product Feed

30 3 PROJECT NO: PURPOSE: PROCEDURE: SAMPLE: KM To Perform a Cyanide Leach on Test 1 Knelson Tail. Standard bottle roll procedure. Agitate on rolls using cyanide, and lime. 2,000 ppm. 500 g Test 1 Knelson Tail. Parameter Time phadded (g) Dissolved Residual (g) Consumed (g) Cum NaCN CaO NaCN CaO NaCN CaO O 2 (mg/l) Natural Leach Leach Leach Leach Total Mass of Sample 500 NaCN Consumption 0.7 kg/tonne Volume of Water 1000 Lime Consumption 0.7 kg/tonne Pulp Density 33

31 4 KM Test 1 Knelson Tail Cumulative Metallurgical Balance Product Cumulative Volume or Assay - g/t Distribution - percent Units Time - Hrs Mass Gold Silver Gold Silver Cyanide Liquor (2 hr) ml Cyanide Liquor (6 hr) ml Cyanide Liquor (24 hr) ml Cyanide Liquor (48 hr) ml Cyanidation Tails g Calculated Feed 500 g Cyanide Leach Kinetic Curves Recovery (percent) ppm Gold Silver Cumulative Time (hours)

32 5 PROJECT NO: PURPOSE: PROCEDURE: SAMPLE: KM To Repeat Test 2 with Pan Tail. Standard bottle roll procedure. Agitate on rolls using cyanide, and lime. 2,000 ppm. 500 g Test 1 Knelson and Pan Tail Blend. Parameter Time ph Added (g) Dissolved Residual (g) Consumed (g) Cum NaCN CaO NaCN CaO NaCN CaO O 2 (mg/l) Natural Leach Leach Leach Leach Total Mass of Sample 500 NaCN Consumption 0.7 kg/tonne Volume of Water 1000 Lime Consumption 0.5 kg/tonne Pulp Density 33

33 6 KM Test 1 Knelson and Pan Tail Blend Cumulative Metallurgical Balance Product Cumulative Volume or Assay - g/t Distribution - percent Units Time - Hrs Mass Gold Silver Gold Silver Cyanide Liquor (2 hr) ml Cyanide Liquor (6 hr) ml Cyanide Liquor (24 hr) ml Cyanide Liquor (48 hr) ml Cyanidation Tails g Calculated Feed 500 g Cyanide Leach Kinetic Curves Recovery (percent) ppm NaCN Cumulative Time (hours) Gold Silver

34 7 PROJECT NO: PURPOSE: PROCEDURE: KM To Investigate Gravity Performance at a target of 150mm K 80 Primary Standard Knelson and panning technique. FEED: 10 kg Master Composite 1 ground to a nominal 125mm K 80. FLOWSHEET NO: 4 Stage Inlet Outlet Pressures Time Pressure Start Finish Minutes Grind 11 KN Separation

35 8 KM Master Composite 1 Overall Metallurgical Balance Product Weight Assay - percent or g/t Distribution - percent grams % Au Ag Au Ag Pan Con Pan Tail Knelson Tail Feed KM Master Composite 1 Cumulative Metallurgical Balance Cumulative Cum. Weight Assay - percent or g/t Distribution - percent Product grams % Au Ag Au Ag Product Product 1 to Product Feed

36 9 PROJECT NO: PURPOSE: PROCEDURE: SAMPLE: KM To Perform a Cyanide Leach on Test 4 Knelson and Pan Tail Blend. Standard bottle roll procedure. Agitate on rolls using cyanide, and lime. 2,000 ppm. 500 g Test 4 Knelson and Pan Tail Blend. Parameter Time phadded (g) Dissolved Residual (g) Consumed (g) Cum NaCN CaO NaCN CaO NaCN CaO O 2 (mg/l) Natural Leach Leach Leach Leach Total Mass of Sample 500 NaCN Consumption 0.9 kg/tonne Volume of Water 1000 Lime Consumption 0.4 kg/tonne Pulp Density 33

37 10 KM Test 4 Knelson and Pan Tail Blend Cumulative Metallurgical Balance Product Cumulative Volume or Assay - g/t Distribution - percent Units Time - Hrs Mass Gold Silver Gold Silver Cyanide Liquor (2 hr) ml Cyanide Liquor (6 hr) ml Cyanide Liquor (24 hr) ml Cyanide Liquor (48 hr) ml Cyanidation Tails g Calculated Feed 500 g Cyanide Leach Kinetic Curves Recovery (percent) ppm NaCN Cumulative Time (hours) Gold Silver

38 11 PROJECT NO: PURPOSE: PROCEDURE: KM To Repeat Test 5 at a Finer Grind Size. Standard bottle roll procedure. Agitate on rolls using cyanide, and lime. 2,000 ppm. SAMPLE: 500 g Test 4 Knelson and Pan Tail Blend ground for 25 Mins to reach a nominal 68µm K80. Parameter Time phadded (g) Dissolved Residual (g) Consumed (g) Cum NaCN CaO NaCN CaO NaCN CaO O 2 (mg/l) Natural Leach Leach Leach Leach Total Mass of Sample 500 NaCN Consumption 1.6 kg/tonne Volume of Water 1000 Lime Consumption 0.4 kg/tonne Pulp Density 33

39 12 KM Test 4 Knelson and Pan Tail Blend Cumulative Metallurgical Balance Product Cumulative Volume or Assay - g/t Distribution - percent Units Time - Hrs Mass Gold Silver Gold Silver Cyanide Liquor (2 hr) ml Cyanide Liquor (6 hr) ml Cyanide Liquor (24 hr) ml Cyanide Liquor (48 hr) ml Cyanidation Tails g Calculated Feed 500 g Cyanide Leach Kinetic Curves Recovery (percent) ppm NaCN Cumulative Time (hours) Gold Silver

40 13 PROJECT NO: PURPOSE: PROCEDURE: KM A To Produce a Gravity Concentrate. Standard Knelson and panning technique. FEED: 4 kg Master Composite 1 ground to a nominal 105mm K 80 using 1,000 ml of water in M6 steel rod mill. FLOWSHEET NO: 4 Stage Inlet Outlet Pressures Time Pressure Start Finish Minutes Grind 16 KN Separation

41 14 PROJECT NO: PURPOSE: PROCEDURE: FEED: KM B Preliminary Rougher Test. Perform a standard one product rougher test. ~4 kg of Test 7A Gravity Tails. FLOWSHEET: 1 Stage Reagents Added g/tonne Time (minutes) ph PAX MIBC Grind Cond. Float Natural 8.0 BULK CIRCUIT: Rougher Rougher Rougher Rougher Flotation Data Rougher Flotation Machine D2A Cell Size in liters 8.0 Air Aspiration Impeller Speed in rpm Air 1100

42 15 KM Master Composite 1 Overall Metallurgical Balance Product Weight Assay - percent or g/t Distribution - percent grams % Cu Pb Zn Fe S Ag Au Cu Pb Zn Fe S Ag Au Pan Con Bulk Ro Con Bulk Ro Con Bulk Ro Con Bulk Ro Con 4* Bulk Ro Tail Feed *estimated for Au KM Master Composite 1 Cumulative Metallurgical Balance Cumulative Cum. Weight Assay - percent or g/t Distribution - percent Product grams % Cu Pb Zn Fe S Ag Au Cu Pb Zn Fe S Ag Au Product Product Product 1 to Product 1 to Product 1 to Product Feed

43 16 PROJECT NO: PURPOSE: PROCEDURE: KM To Repeat Test 4 at a Coarser Primary Grind. Standard Knelson and panning technique. FEED: 4 kg Master Composite 1 ground to a nominal 144mm K 80 FLOWSHEET NO: 4 Stage Inlet Outlet Pressures Time Pressure Start Finish Minutes Grind 9 KN Separation

44 17 KM Master Composite 1 Overall Metallurgical Balance Product Weight Assay - percent or g/t Distribution - percent grams % Au Ag Au Ag Pan Con Pan Tail Knelson Tail Feed KM Master Composite 1 Cumulative Metallurgical Balance Cumulative Cum. Weight Assay - percent or g/t Distribution - percent Product grams % Au Ag Au Ag Product Product 1 to Product Feed

45 18 PROJECT NO: PURPOSE: PROCEDURE: SAMPLE: KM To Perform a Cyanide Leach on Test 8 Knelson and Pan Tail Blend. Standard bottle roll procedure. Agitate on rolls using cyanide, and lime. 2,000 ppm. 500 g Test 8 Knelson and Pan Tail Blend. Parameter Time ph Added (g) Dissolved Residual (g) Consumed (g) Cum NaCN CaO NaCN CaO NaCN CaO O 2 (mg/l) Natural Leach Leach Leach Leach Total Mass of Sample 500 NaCN Consumption 0.6 kg/tonne Volume of Water 1000 Lime Consumption 0.8 kg/tonne Pulp Density 33

46 19 KM Test 8 Knelson and Pan Tail Blend Cumulative Metallurgical Balance Product Cumulative Volume or Assay - g/t Distribution - percent Units Time - Hrs Mass Gold Silver Gold Silver Cyanide Liquor (2 hr) ml Cyanide Liquor (6 hr) ml Cyanide Liquor (24 hr) ml Cyanide Liquor (48 hr) ml Cyanidation Tails g Calculated Feed 500 g Cyanide Leach Kinetic Curves Recovery (percent) ppm NaCN Cumulative Time (hours) Gold Silver

47 20 PROJECT NO: PURPOSE: PROCEDURE: KM A To Produce a Gravity Concentrate. Standard Knelson and panning technique. FEED: 8 kg Master Composite 1 ground to a nominal 105mm K 80 using 1,000 ml of water in M6 steel rod mill. FLOWSHEET NO: 4 Stage Inlet Outlet Pressures Time Pressure Start Finish Minutes Grind 16 KN Separation

48 21 PROJECT NO: KM B PURPOSE: To Repeat Test 7. PROCEDURE: FEED: Perform a standard one product rougher test. ~8 kg of Test 10A Gravity Tails. FLOWSHEET: 1 Stage Reagents Added g/tonne Time (minutes) ph PAX MIBC Grind Cond. Float Natural 8.0 BULK CIRCUIT: Rougher Rougher Rougher Rougher Flotation Data Rougher Flotation Machine D2A Cell Size in liters 8.0 Air Aspiration Impeller Speed in rpm Air 1100

49 22 KM Master Composite 1 Overall Metallurgical Balance Product Weight Assay - percent or g/t Distribution - percent grams % Cu Pb Zn Fe S Ag Au Cu Pb Zn Fe S Ag Au Pan Con Bulk Ro Con Bulk Ro Tail Feed KM Master Composite 1 Cumulative Metallurgical Balance Cumulative Cum. Weight Assay - percent or g/t Distribution - percent Product grams % Cu Pb Zn Fe S Ag Au Cu Pb Zn Fe S Ag Au Product Product Product Feed

50 23 PROJECT NO: PURPOSE: PROCEDURE: SAMPLE: KM To Repeat Test 3 at 1,000 ppm Cyanide. Standard bottle roll procedure. Agitate on rolls using cyanide, and lime. 1,000 ppm. 500 g Test 1 Knelson and Pan Tail Blend. Parameter Time ph Added (g) Dissolved Residual (g) Consumed (g) Cum NaCN CaO NaCN CaO NaCN CaO O 2 (mg/l) Natural Leach Leach Leach Leach Total Mass of Sample 500 NaCN Consumption 0.3 kg/tonne Volume of Water 1000 Lime Consumption 1.0 kg/tonne Pulp Density 33

51 24 KM Test 1 Knelson and Pan Tail Blend Cumulative Metallurgical Balance Product Cumulative Volume or Assay - g/t Distribution - percent Units Time - Hrs Mass Gold Silver Gold Silver Cyanide Liquor (2 hr) ml Cyanide Liquor (6 hr) ml Cyanide Liquor (24 hr) ml Cyanide Liquor (48 hr) ml Cyanidation Tails g Calculated Feed 500 g Cyanide Leach Kinetic Curves Recovery (percent) ppm NaCN Cumulative Time (hours) Gold Silver

52 25 PROJECT NO: PURPOSE: PROCEDURE: SAMPLE: KM To Repeat Test 11 at 500 ppm Cyanide. Standard bottle roll procedure. Agitate on rolls using cyanide, and lime. 500 ppm. 500 g Test 1 Knelson and Pan Tail Blend. Parameter Time ph Added (g) Dissolved Residual (g) Consumed (g) Cum NaCN CaO NaCN CaO NaCN CaO O 2 (mg/l) Natural Leach Leach Leach Leach Total Mass of Sample 500 NaCN Consumption 0.2 kg/tonne Volume of Water 1000 Lime Consumption 0.6 kg/tonne Pulp Density 33

53 26 KM Test 1 Knelson and Pan Tail Blend Cumulative Metallurgical Balance Product Cumulative Volume or Assay - g/t Distribution - percent Units Time - Hrs Mass Gold Silver Gold Silver Cyanide Liquor (2 hr) ml Cyanide Liquor (6 hr) ml Cyanide Liquor (24 hr) ml Cyanide Liquor (48 hr) ml Cyanidation Tails g Calculated Feed 500 g Cyanide Leach Kinetic Curves Recovery (percent) ppm NaCN Cumulative Time (hours) Gold Silver

54 27 PROJECT NO: PURPOSE: PROCEDURE: SAMPLE: KM To Perform a Cyanide Leach on Test 10 Bulk Rougher Concentrate. Standard bottle roll procedure. Agitate on rolls using cyanide, and lime. 2,000 ppm. 377 g Test 10 Bulk Rougher Concentrate. Parameter Time ph Added (g) Dissolved Residual (g) Consumed (g) Cum NaCN CaO NaCN CaO NaCN CaO O 2 (mg/l) Natural Leach Leach Leach Leach Total Mass of Sample 377 NaCN Consumption 2.9 kg/tonne Volume of Water 754 Lime Consumption 1.2 kg/tonne Pulp Density 33

55 28 KM Test 10 Bulk Rougher Concentrate Cumulative Metallurgical Balance Product Cumulative Volume or Assay - g/t Distribution - percent Units Time - Hrs Mass Gold Silver Gold Silver Cyanide Liquor (2 hr) ml Cyanide Liquor (6 hr) ml Cyanide Liquor (24 hr) ml Cyanide Liquor (48 hr) ml Cyanidation Tails g Calculated Feed 377 g Cyanide Leach Kinetic Curves Recovery (percent) ppm NaCN Cumulative Time (hours) Gold Silver

56 APPENDIX III KM2906 PARTICLE SIZING DATA

57 INDEX TABLE m K 80 PAGE GRIND CALIBRATIONS III-1 KM2906 Master Composite 1 9 Minute Grind III-2 KM2906 Master Composite 1 11 Minute Grind III-3 KM2906 Master Composite 1 14 Minute Grind III-4 KM2906 Master Composite 1 16 Minute Grind C III-5 KM2906 Master Composite 1 23 Minute Grind 81 5 TEST PRODCUTS III-6 KM Knelson Tail III-7 KM Cyanide Tail 68 7

58 1 TABLE III-1 SCREEN ANALYSIS KM2906 Master Composite 1-9 Minute Grind Calibration Product Particle Size Weight Cumulative µm % Retained % Passing 35 Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh TOTAL ** K80 =144µm Note: 9 min. grind calibration using 2 kg. Ore, 1000 ml water and 20 kg. of Mild Steel rods in Mill: M6 Particle Size Distribution Plot Cumulative Percent Passing Particle Size (microns)

59 2 TABLE III-2 SCREEN ANALYSIS KM2906 Master Composite 1-11 Minute Grind Calibration Product Particle Size Weight Cumulative µm % Retained % Passing 48 Mesh Mesh Mesh Mesh Mesh Mesh Mesh TOTAL ** K80 =125µm Note: 11 min. grind calibration using 2 kg. Ore, 1000 ml water and 20 kg. of Mild Steel rods in Mill: M6 Particle Size Distribution Plot Cumulative Percent Passing Particle Size (microns)

60 3 TABLE III-3 SCREEN ANALYSIS KM2906 Master Composite 1-14 Minute Grind Calibration Product Particle Size Weight Cumulative µm % Retained % Passing 48 Mesh Mesh Mesh Mesh Mesh Mesh Mesh TOTAL ** K80 =119µm Note: 14 min. grind calibration using 2 kg. Ore, 1000 ml water and 20 kg. of Mild Steel rods in Mill: M6 Particle Size Distribution Plot Cumulative Percent Passing Particle Size (microns)

61 4 TABLE III-4 CYCLOSIZING ANALYSIS KM2906 Master Composite 1-16 Minute Grind Calibration Product Size (µm) Weight Cumulative Limiting Effective % Retained % Passing 48 Mesh Mesh Mesh Mesh Mesh Mesh Cyclone Cyclone Cyclone Cyclone Cyclone Total ** Operating Conditions Measured Factor Temperature ( C) Specific Gravity Flow Rate (mm) Elutriation Time (min) Overall Factor K80 Size (microns) 105 Note: 16 min. grind calibration using 2 kg. Ore, 1000 ml water and 20 kg. of Mild Steel rods in Mill: M6 Particle Size Distribution Plot Cumulative Percent Passing Particle Size (microns)

62 5 TABLE III-5 SCREEN ANALYSIS KM2906 Master Composite 1-23 Minute Grind Calibration Product Particle Size Weight Cumulative µm % Retained % Passing 65 Mesh Mesh Mesh Mesh Mesh Mesh TOTAL ** K80 =81µm Note: 23 min. grind calibration using 2 kg. Ore, 1000 ml water and 20 kg. of Mild Steel rods in Mill: M6 Particle Size Distribution Plot Cumulative Percent Passing Particle Size (microns)

63 6 TABLE III-6 SCREEN ANALYSIS KM Knelson Tail Product Particle Size Weight Cumulative µm % Retained % Passing 35 Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh TOTAL ** K80 =126µm Particle Size Distribution Plot Cumulative Percent Passing Particle Size (microns)

64 7 TABLE III-7 SCREEN ANALYSIS KM Cyanide Tail Product Particle Size Weight Cumulative µm % Retained % Passing 48 Mesh Mesh Mesh Mesh Mesh Mesh Mesh TOTAL ** K80 =68µm Particle Size Distribution Plot Cumulative Percent Passing Particle Size (microns)

65 APPENDIX IV KM2906 COMMINUTION DATA

66 INDEX TEST PAGE BOND BALL TEST IV-1 KM2906 Master Composite 1 1

67 1 TABLE IV-1A BOND BALL GRINDABILITY TEST KM2906 Master Composite 1 Weight of 700 ml Sample : g. Aperture Test Sieve : 106µm 1/3.5 of Sample Weight : g. Percent Undersize : 24.2% Cycle Weight of Number of Weight of Undersize New Feed Revolutions Product Feed Net Product Net / Rev BOND'S WORK INDEX FORMULA Wi = 44.5 / (Pi^.23 x Gpb^.82 x (10/ P - 10/ F)) Pi = Sieve Size Tested 106 µm Gbp = Net undersize produced per revolution of mill g. P = 80% Passing size of test product. 85 µm F = 80% Passing size of test feed µm WORK INDEX (Wi) 10.1 kw-hr/ton 11.1 kw-hr/tonne NB: Gbp = Average of last 3 Net/Rev Cycles

68 2 TABLE IV-1B BOND BALL SCREEN ANALYSIS KM2906 Master Composite 1 - Cycle 6 Undersize Product Particle Size Weight Cumulative µm % Retained % Passing 150 Mesh Mesh Mesh Mesh Mesh Mesh TOTAL ** K80 =85µm Cumulative Percent Passing Particle Size Distribution Plot Particle Size (microns)

69 3 TABLE IV-1C BOND BALL SCREEN ANALYSIS KM2906 Master Composite 1 - Average Feed Product Particle Size Weight Cumulative µm % Retained % Passing 6 Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh TOTAL ** K80 =1966µm 0 0 Particle Size Distribution Plot Cumulative Percent Passing Particle Size (microns)

70 4 TABLE IV-1D BOND BALL SCREEN ANALYSIS KM2906 Master Composite 1 - Feed 1 Product Particle Size Weight Cumulative µm % Retained % Passing 6 Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh TOTAL ** K80 =1973µm 0 0 Particle Size Distribution Plot Cumulative Percent Passing Particle Size (microns)

71 5 TABLE IV-1E BOND BALL SCREEN ANALYSIS KM2906 Master Composite 1 - Feed 2 Product Particle Size Weight Cumulative µm % Retained % Passing 6 Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh TOTAL ** K80 =1914µm 0 0 Particle Size Distribution Plot Cumulative Percent Passing Particel Size (microns)

72 6 TABLE IV-1F BOND BALL SCREEN ANALYSIS KM2906 Master Composite 1 - Feed 3 Product Particle Size Weight Cumulative µm % Retained % Passing 6 Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh Mesh TOTAL ** K80 =2003µm Cumulative Percent Passing Particle Size Distribution Plot Particle Size (microns)

73 APPENDIX V KM2906 SPECIAL DATA

74 INDEX TABLE PAGE V-1 Replicate Head Assay Data 1 V-2 Thickener Test KM Cyanide Tail 2

75 1 Sample TABLE V-1 REPLICATE HEAD ASSAY DATA Assays - percent or g/tonne Cu Pb Zn Fe S Au Ag C Master Composite 1 Head Master Composite 1 Head Master Composite 1 Head Master Composite 1 Head Average

76 2 TABLE V-2A KM2906-A KM Cyanide Tail SETTLING DATA TEST CONDITIONS Elapsed Interface Interface Solids S.G Time (min) Height (ml) Height (mm) Solids Weight (g) 150 Solids Volume (ml) ph ( as tested ) ph modifier (g/t) Flocculant Type Superfloc A Flocculant ( g/t) Temperature (C) Slurry Volume (ml) Slurry S.G Final Slurry Volume Initial Percent Solids Final Percent Solids Thickener Area - m 2 /d/tonne U/F Density - percent solids Note: Thickener area estimated using thetalmadge-fitch Method SETTLING RATE Good Clarity 400 Interface - millimetres Time - minutes

77 3 TABLE V-2B KM2906-A KM Cyanide Tail Specific Gravity Calculation Volumetric Flask Sample KM2906 Thickening Tail A - S.G. Weight Flask + Methyl Hydrate Sample Flask + Sample + Methyl H S.G. Methyl Hydrate S.G. Sample 2.69 S.G. Factor 1.001

78 APPENDIX VI KM2906 MINERALOGICAL DATA

79 TABLE INDEX PAGE 1 Mineral Composition of Goliath Gold Master Composite Distribution of Copper/Sulphur Bearing Minerals 2 3 Mineral Distribution by Class of Associations 3 4 Chemical Composition of Goliath Gold Master Composite 1 4

80 1 TABLE 1 MINERAL COMPOSITION OF GOLIATH GOLD MASTER COMPOSITE 1 KM2906 Minerals Weight Percent Sizing (K80, µm) 105 Copper Sulphides 0.05 Galena 0.04 Sphalerite 0.13 Pyrite 1.65 Pyrrhotite 0.20 Iron Oxides 0.09 Quartz 55.6 Feldspars 16.7 Muscovite 19.9 Biotite/Phlogopite 2.27 Chlorite 0.71 Epidote 0.45 Ti Minerals 0.24 Tourmaline 0.35 Apatite 0.17 Amphibole (Hornblende) 0.16 Calcite 0.07 Others 1.21 Total 100 Note: 1) Copper Sulphides includes Chalcopyrite, Covellite and Tetrahedrite 2) Iron Oxides includes Magnetite, Hematite, Goethite and Limonite. 2) Feldspars includes Plagioclase-Feldspar, Feldspar-Albite, Alkali Feldspar and K-Feldspar. 3) Ti Minerals includes Sphene and Rutile/Anatase. 4) Tourmaline includes 'Kaoline' (clay). 5) Others incluides Chromite, Garnet and unsolved mineral species.

81 2 TABLE 2A DISTRIBUTION OF COPPER BEARING MINERALS Master Composite 1 Mineral Assays % Copper % Copper Bearing Mineral Wt. % Bearing Mineral of Total Copper Chalcopyrite Covellite Tetrahedrite Total TABLE 2B DISTRIBUTION OF SULPHUR BEARING MINERALS Master Composite 1 Mineral Assays % Sulphur % Sulphur Bearing Mineral Wt. % Bearing Mineral of Total Sulphur Copper Sulphides Galena Sphalerite Pyrite Pyrrhotite Total

82 3 TABLE 3 MINERAL DISTRIBUTION BY CLASS OF ASSOCIATIONS Master composite 1, 105µm K80 Mineral Status Copper Sulphides Galena Spalerite Pyrite Gangue Liberated Binary - Cs Binary - Ga Binary - Sp Binary - Py Binary - Gn Multiphase Total Note: 1) Cs-Copper Sulphides including Chalcopyrite, Covellite and Tetrahedrite, Ga-Galena, Sp-Sphalerite, Py-Pyrite and Pyrrhotite, Gn-Non-Sulphide Gangue Minerals.

83 4 TABLE 4 CHEMICAL COMPOSITION OF GOLIATH GOLD MASTER COMPOSITE 1 KM2906 Element Assay Methods Assay % Cu Fe Pb S Zn QEMSCAN 0.02 Chemical 0.02 QEMSCAN 1.37 Chemical 1.53 QEMSCAN 0.04 Chemical 0.04 QEMSCAN 1.03 Chemical 1.41 QEMSCAN 0.08 Chemical 0.08

84 APPENDIX VII KM2906 ADIS ANALYSIS DATA

85 INDEX TABLE PAGE 1 KM2906 Test 8 Pan Concentrate of Master Composite 1 1 PHOTOMICROGRAPH 1 Goliath Gold Pan Concentrate of Master Composite 1 5

86 1 TABLE 1A AVERAGE SIZE OF THE GOLD OCCURRENCES BY CLASS OF ASSOCIATION KM2906 Test 8 Pan Concentrate of Master Composite 1 Particles Observed Mode of Occurrence Average Projected Area Diameter - microns Area % Au Cs Ga Sp Ap Py FeOx Gn Gold 8 Liberated Gold Gold Pyrite Adhesion Binary Gold Pyrite Inclusion Binary Gold Pyrite Adhesion Inclusion Binary Gold Gangue Adhesion Binary Gold Adhesion Multiphase Gold Inclusion Mutliphase Notes: a) Au-Gold, Cs-Copper Sulphides including Chalcopyrite, Tetrahedrite, and Enargite, Ga-Galena, Sp-Sphalerite, Ap-Arsenopyrite, Py-Pyrite, FeOx-Iron Oxides including Magnetite and Hematite, Gn-Gangue. b) Projected area diameter is the diameter of a circle in mineralogical terms. TABLE 1B AVERAGE COMPOSITION BY MASS OF THE GOLD OCCURRENCES BY CLASS OF ASSOCIATION KM2906 Test 8 Pan Concentrate of Master Composite 1 Particles Observed Mode of Occurrence Average Mass - Percent Au Cs Ga Sp Ap Py FeOx Gn 8 Liberated Gold Gold Pyrite Adhesion Binary Gold Pyrite Inclusion Binary Gold Pyrite Adhesion Inclusion Binary Gold Gangue Adhesion Binary <1 4 Gold Adhesion Multiphase <1 <1 46 <1 2 9 Gold Inclusion Mutliphase <1 <1 <1 < <1 Notes: a) Au-Gold, Cs-Copper Sulphides including Chalcopyrite, Tetrahedrite, and Enargite, Ga-Galena, Sp-Sphalerite, Ap-Arsenopyrite, Py-Pyrite, FeOx-Iron Oxides including Magnetite and Hematite, Gn-Gangue. b) Mass data assumes particles are spherical in shape.

87 2 TABLE 1C DISTRIBUTION OF GOLD OCCURRENCES BY CLASS OF ASSOCIATION KM2906 Test 8 Pan Concentrate of Master Composite 1 Sample Liberated Locked in Binary With: Cs Ga Sp Ap Py FeOx Gn Test 8 Pan Concentrate Notes: a) Cs-Copper Sulphides including Chalcopyrite, Tetrahedrite, and Enargite, Ga-Galena, Sp-Sphalerite, Ap-Arsenopyrite, Py-Pyrite, FeOx-Iron Oxides including Magnetite and Hematite, Gn-Gangue. MP TABLE 1D DISTRIBUTION OF GOLD MASS BY CLASS OF ASSOCIATION KM2906 Test 8 Pan Concentrate of Master Composite 1 Sample Liberated Locked in Binary With: Cs Ga Sp Ap Py FeOx Gn Test 8 Pan Concentrate Notes: a) Cs-Copper Sulphides including Chalcopyrite, Tetrahedrite, and Enargite, Ga-Galena, Sp-Sphalerite, Ap-Arsenopyrite, Py-Pyrite, FeOx-Iron Oxides including Magnetite and Hematite, Gn-Gangue. MP TABLE 1E SUMMARY OF ADIS ANALYSIS OF GOLD KM2906 Test 8 Pan Concentrate of Master Composite 1 Parameter Size Fraction Number of Slides Scanned Number of Particles Scanned Total Surface Area of Particles Total Surface Area of Gold Estimated Volume of All Particles Estimated Volume of Gold Grains Number of Gold Occurrences Mean Projected Diameter of Gold Measured Gold Content Units Unsized x x 10 9 µm x 10 5 µm x µm x 10 7 µm µm 341 g/t

88 3 TABLE 1F STATUS OF GOLD OCCURRENCES BY CLASS OF ASSOCIATION KM2906 Test 8 Pan Concentrate of Master Composite 1 Particle Mode of Occurrence Projected Area Diameter - microns Au Cs Ga Sp Ap Py FeOx Gn 1 Liberated Gold Gold Pyrite Adhesion Inclusion Binary Liberated Gold Gold Pyrite Adhesion Binary <1 5 Gold Inclusion Multiphase Gold Gangue Adhesion Binary Gold Gangue Adhesion Binary Liberated Gold Gold Pyrite Inclusion Binary Liberated Gold Gold Inclusion Multiphase Liberated Gold Liberated Gold Gold Pyrite Adhesion Binary Gold Inclusion Multiphase <1 16 Gold Adhesion Multiphase Gold Pyrite Adhesion Binary Gold Inclusion Multiphase <1 19 Gold Inclusion Multiphase Gold Pyrite Inclusion Binary Gold Adhesion Multiphase Gold Inclusion Multiphase <1 23 Liberated Gold Gold Inclusion Multiphase Gold Pyrite Adhesion Binary Gold Inclusion Multiphase Gold Pyrite Adhesion Binary Liberated Gold Gold Pyrite Adhesion Binary Gold Inclusion Multiphase <1 31 Gold Pyrite Adhesion Binary Gold Adhesion Multiphase <1 33 Gold Adhesion Multiphase Gold Pyrite Inclusion Binary Gold Pyrite Inclusion Binary Notes: a) Au-Gold, Cs-Copper Sulphides including Chalcopyrite, Tetrahedrite, and Enargite, Ga-Galena, Sp-Sphalerite, Ap-Arsenopyrite, Py-Pyrite, FeOx-Iron Oxides including Magnetite and Hematite, Gn-Gangue. b) Projected area diameter is the diameter of a circle in mineralogical terms. Area % Gold

89 4 TABLE 1G STATUS OF GOLD OCCURRENCES BY MASS BY CLASS OF ASSOCIATION KM2906 Test 8 Pan Concentrate of Master Composite 1 Particle Mode of Occurrence Mass - Percent Au Cs Ga Sp Ap Py FeOx Gn 1 Liberated Gold Gold Pyrite Adhesion Inclusion Binary Liberated Gold Gold Pyrite Adhesion Binary < Gold Inclusion Multiphase 1 - <1 < Gold Gangue Adhesion Binary <1 7 Gold Gangue Adhesion Binary <1 8 Liberated Gold Gold Pyrite Inclusion Binary < Liberated Gold Gold Inclusion Multiphase <1 - - < Liberated Gold Liberated Gold Gold Pyrite Adhesion Binary Gold Inclusion Multiphase <1 < Gold Adhesion Multiphase Gold Pyrite Adhesion Binary < Gold Inclusion Multiphase <1 - - < <1 19 Gold Inclusion Multiphase < Gold Pyrite Inclusion Binary < Gold Adhesion Multiphase <1 <1-22 Gold Inclusion Multiphase <1 < Liberated Gold Gold Inclusion Multiphase <1 - - < <1 25 Gold Pyrite Adhesion Binary Gold Inclusion Multiphase 1 <1 < Gold Pyrite Adhesion Binary Liberated Gold Gold Pyrite Adhesion Binary Gold Inclusion Multiphase < <1 31 Gold Pyrite Adhesion Binary Gold Adhesion Multiphase <1 < Gold Adhesion Multiphase Gold Pyrite Inclusion Binary Gold Pyrite Inclusion Binary Notes: a) Au-Gold, Cs-Copper Sulphides including Chalcopyrite, Tetrahedrite, and Enargite, Ga-Galena, Sp-Sphalerite, Ap-Arsenopyrite, Py-Pyrite, FeOx-Iron Oxides including Magnetite and Hematite, Gn-Gangue. b) Mass data assumes particles are spherical in shape.

90 5 PHOTOMICROGRAPH 1 GOLIATH GOLD PAN CONCENTRATE OF MASTER COMPOSITE 1 Test 8 KM2906 Particle 1 Particle 3 Area:5989µm 2 Au Au Area:2547µm 2 Particle 6 Particle 24 Gn Area:43070µm 2 Sp Au Area:98µm 2 Au Gn Py Particle 27 Particle 35 Py Area:5778µm 2 Area:5754µm 2 Au Py Au Py *Au-Gold, Sp-Sphalerite, Py-Pyrite, Gn-Gangue.