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KM61, Ontario

KM61 43-101 Technical Report


Click here for KM61 43-101 Technical Report.

Summary:

On December 9, 2008, the Company reported an initial Mineral Resource estimate for the Main Zone at its KM61 Project located near Armstrong, Ontario. This resource consists of a single body of mineralization as detailed in the tables below. At a cut-off grade of 0.02% molybdenum, the 66.6 million tonne Indicated Resource includes in-situ metal quantities of 127.7 million pounds of copper, 78.2 million pounds of molybdenum, and 5.5 million ounces of silver. In addition, the 38.9 million tonne Inferred Resource includes in-situ metal quantities of 78.0 million pounds of copper, 46.5 million pounds of molybdenum, and 3.4 million ounces of silver.

The Mineral Resources encompass the 1.55 kilometre long and up to 275 metres wide Main Zone of the KM61 project where exploration has focused to date. Metallurgical recoveries, from a locked cycle test for KM61, had been reported previously (see press release dated November 24, 2008), and though subject to change as more test work is completed, show mineralization that responds well to conventional flotation.

Table 1. Indicated Mineral Resources -- December 3, 2008

Molybdenum
(%) cut-off
Tonnes Molybdenum (%) Copper (%) Silver (g/t) Molybdenum Equivalent (%)
0.10 2,700,000 0.119 0.12 3.3 0.133
0.08 7,800,000 0.099 0.11 3.2 0.111
0.06 21,100,000 0.080 0.10 3.0 0.091
0.04 45,500,000 0.064 0.09 2.8 0.074
0.03 57,900,000 0.057 0.09 2.7 0.068
0.02 66,600,000 0.053 0.09 2.6 0.063


Table 2. Inferred Mineral Resource Table -- December 3, 2008

Molybdenum
(%) cut-off
Tonnes Molybdenum (%) Copper (%) Silver (g/t) Molybdenum Equivalent (%)
0.10 1,600,000 0.125 0.09 2.5 0.135
0.08 5,300,000 0.100 0.11 3.5 0.112
0.06 13,500,000 0.081 0.11 3.5 0.094
0.04 25,900,000 0.066 0.10 3.0 0.077
0.03 33,600,000 0.059 0.09 2.8 0.070
0.02 38,900,000 0.054 0.09 2.7 0.065


Notes:

1. CIM definitions were followed for Mineral Resources.
2. The cut-off grade of 0.02% Molybdenum was calculated using long-term prices of US$2.50 per pound copper, US $20.00 per pound molybdenum, and US$13.50 per ounce silver.
3. Molybdenum equivalent values were calculated using the same long-term prices as above and take into account projected metallurgical recoveries, certain concentrate properties, smelter charges, and payable percentages.
4. High Molybdenum values were cut to 0.04% prior to compositing to three metres. Similarly, Silver was cut to 30 g/t.
5. Blocks are 10 metres by 10 metres by 10 metres. Inverse distance squared interpolation was used to estimate block grades.


Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA), independent geological and mining consultants, prepared the estimate as at December 3, 2008 in accordance with the guidelines set forth in National Instrument 43-101 ("NI 43-101"). The estimate was based on a geology model prepared by Geoff Chinn, P.Geo., Stockport's Senior Resource Geologist, on data for drill holes completed through to September 25th, 2008. The resource was estimated through block modeling in Gemcom software. Volumes were constrained using 3D wireframes interpreted from geological logs and assay data, and a preliminary open pit shell modeled in Whittle software.