Prodigy-Gold-Technic.. - Argonaut Gold Inc.
Prodigy-Gold-Technic.. - Argonaut Gold Inc.
Prodigy-Gold-Technic.. - Argonaut Gold Inc.
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Final<br />
<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update,<br />
Magino <strong>Gold</strong> Project, Ste. Sault Marie Mining District, Ontario<br />
Project No. V1111<br />
NI 43-101 <strong>Technic</strong>al Report<br />
2 November 2011
Office Locations<br />
Perth<br />
87 Colin St, West Perth WA 6005<br />
AUSTRALIA<br />
PO Box 77, West Perth WA 6872<br />
AUSTRALIA<br />
Tel: +61 8 9213 9213<br />
Fax: +61 8 9322 2576<br />
ABN: 99 085 319 562<br />
perth@snowdengroup.com<br />
Brisbane<br />
Level 15, 300 Adelaide Street<br />
Brisbane QLD 4000 AUSTRALIA<br />
PO Box 2207, Brisbane QLD 4001<br />
AUSTRALIA<br />
Tel: +61 7 3231 3800<br />
Fax: +61 7 3211 9815<br />
ABN: 99 085 319 562<br />
brisbane@snowdengroup.com<br />
Johannesburg<br />
Technology House ,Greenacres Office Park,<br />
Cnr. Victory and Rustenburg Roads, Victory<br />
Park<br />
JOHANNESBURG 2195 SOUTH AFRICA<br />
PO Box 2613, Parklands 2121<br />
SOUTH AFRICA<br />
Tel: + 27 11 782 2379<br />
Fax: + 27 11 782 2396<br />
Reg No. 1998/023556/07<br />
johannesburg@snowdengroup.com<br />
Vancouver<br />
Suite 550, 1090 West Pender St,<br />
VANCOUVER BC V6E 2N7 CANADA<br />
Tel: +1 604 683 7645<br />
Fax: +1 604 683 7929<br />
Reg No. 557150<br />
vancouver@snowdengroup.com<br />
Calgary<br />
Suite 850, 550 11th Avenue SW CALGARY,<br />
ALBERTA T2R 1M7<br />
Tel +1 403 452 5559<br />
Fax +1 403 452 5988<br />
calgary@snowdengroup.com<br />
Belo Horizonte<br />
Afonso Pena 2770, CJ 201 A 205<br />
Funcionários, 30.130-007, BELO HORIZONTE<br />
MG BRASIL<br />
Tel: +55 (31) 3222-6286<br />
Fax: +55 (31) 3222-6286<br />
belohorizonte@snowdengroup.com<br />
Oxford<br />
Lvl 3, The Magdalen Centre 1 Robert Robinso<br />
Avenue The Oxford Science Park<br />
OXFORD OX4 4GA<br />
Tel: +44 1865 784 884<br />
Fax: +44 1865 784 888<br />
oxford@snowdengroup.com<br />
Website<br />
www.snowdengroup.com<br />
IMPORTANT NOTICE<br />
This report was prepared as a National Instrument 43-101 <strong>Technic</strong>al<br />
Report, in accordance with Form 43-101F1, for <strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated<br />
by Snowden. The quality of information, conclusions, and estimates<br />
contained herein is consistent with the level of effort involved in Snowden’s<br />
services, based on: i) information available at the time of preparation, ii)<br />
data supplied by outside sources, and iii) the assumptions, conditions, and<br />
qualifications set forth in this report. This report is intended to be used by<br />
<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated, subject to the terms and conditions of its<br />
contract with Snowden. That contract permits <strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated<br />
to file this report as a <strong>Technic</strong>al Report with Canadian Securities<br />
Regulatory Authorities pursuant to provincial securities legislation. Except<br />
for the purposes legislated under provincial securities law, any other use of<br />
this report by any third party is at that party’s sole risk.<br />
2011<br />
All rights are reserved. No part of this document may be reproduced,<br />
stored in a retrieval system, or transmitted in any form or by any means,<br />
electronic, mechanical, photocopying, recording or otherwise, without the<br />
prior written permission of Snowden.<br />
By<br />
Qualified<br />
Person<br />
Andrew F. Ross<br />
M.Sc., P. Geo., CP, FAusIMM,<br />
Senior Principal Consultant.........................................................<br />
Issued by: Vancouver Office<br />
Doc Ref: 111216_V1111_Final_<strong>Prodigy</strong><strong>Gold</strong>_MR_NI43101.docx<br />
Last Edited: 16/12/2011 4:26:00 PM<br />
Number of copies<br />
Snowden: 2<br />
<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: 2
<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />
Project, Ste. Sault Marie Mining District, Ontario<br />
NI 43-101 <strong>Technic</strong>al Report<br />
1 Summary ............................................................................................................................. 8<br />
1.1 Geology and Mineralization ...................................................................................... 8<br />
1.2 Mineral Resource Estimate ...................................................................................... 9<br />
1.3 Recommendations ................................................................................................. 11<br />
2 Introduction ........................................................................................................................ 12<br />
3 Reliance on other experts .................................................................................................. 13<br />
4 Property description and location ....................................................................................... 14<br />
4.1 Location ................................................................................................................. 14<br />
4.2 Status of mining titles ............................................................................................. 14<br />
4.3 Environmental matters ........................................................................................... 17<br />
5 Accessibility, climate, local resources, infrastructure and physiography ............................. 19<br />
5.1 Accessibility ........................................................................................................... 19<br />
5.2 Climate ................................................................................................................... 19<br />
5.3 Local resources ...................................................................................................... 19<br />
5.4 Physiography ......................................................................................................... 19<br />
6 History ............................................................................................................................... 21<br />
6.1 Prior to 1940s ......................................................................................................... 21<br />
6.2 1972 to 1996 McNellen Resources and Muscocho Explorations ............................ 22<br />
6.2.1 Comments on drilling and core sampling ................................................ 26<br />
6.2.2 Comments on analytical laboratory ........................................................ 26<br />
6.3 1996 – 2010 <strong>Gold</strong>en Goose ................................................................................... 26<br />
6.3.1 1996....................................................................................................... 26<br />
6.3.2 1997....................................................................................................... 26<br />
6.3.3 1998-1999.............................................................................................. 28<br />
6.3.4 2000....................................................................................................... 29<br />
6.3.5 2001....................................................................................................... 30<br />
6.3.6 2002....................................................................................................... 30<br />
6.3.7 2004....................................................................................................... 30<br />
6.3.8 2006....................................................................................................... 31<br />
6.3.9 2007....................................................................................................... 32<br />
6.3.10 2008....................................................................................................... 32<br />
6.3.11 2009....................................................................................................... 33<br />
6.3.12 2010....................................................................................................... 33<br />
6.3.13 Summary ................................................................................................ 34<br />
7 Geological setting and mineralization ................................................................................ 39<br />
7.1 The Archean Superior Province ............................................................................. 39<br />
7.2 The Wawa Sub-province ........................................................................................ 39<br />
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7.3 The Michipicoten greenstone belt ........................................................................... 41<br />
7.4 The geology of the Magino mine area .................................................................... 43<br />
7.5 <strong>Gold</strong> mineralization ................................................................................................ 45<br />
7.6 Structures associated with gold mineralization ....................................................... 47<br />
7.7 Current view on mineralization controls and identification of ore zones .................. 48<br />
8 Deposit types ..................................................................................................................... 50<br />
9 Exploration ........................................................................................................................ 53<br />
10 Drilling ............................................................................................................................... 54<br />
10.1 <strong>Prodigy</strong> drilling ....................................................................................................... 54<br />
10.1.1 Type and extent ..................................................................................... 54<br />
10.1.2 Procedures followed ............................................................................... 54<br />
10.1.3 Relevant results ..................................................................................... 55<br />
10.1.4 Factors that could materially impact the accuracy and reliability of<br />
the results .............................................................................................. 71<br />
10.1.5 Drill plan ................................................................................................. 71<br />
10.1.6 Examples of drill sections ....................................................................... 72<br />
11 Sample preparation, analyses and security ....................................................................... 76<br />
11.1 Sampling method and approach ............................................................................. 76<br />
11.2 Sample preparation methods and quality control measures employed before<br />
dispatch of samples ............................................................................................... 76<br />
11.2.1 2009 - 2010 <strong>Gold</strong>en Goose program ...................................................... 76<br />
11.2.2 2010 2011 Kodiak and <strong>Prodigy</strong> program ................................................ 77<br />
11.2.3 Statement ............................................................................................... 77<br />
11.3 Analytical laboratories ............................................................................................ 78<br />
11.3.1 Accurassay Laboratories Ltd .................................................................. 78<br />
11.3.2 ALS Chemex .......................................................................................... 78<br />
11.4 Sample splitting and reduction ............................................................................... 78<br />
11.4.1 Accurassay Laboratories Ltd .................................................................. 78<br />
11.4.2 ALS Chemex .......................................................................................... 78<br />
11.5 Analytical procedures ............................................................................................. 79<br />
11.5.1 Accurassay Laboratories Ltd .................................................................. 79<br />
11.5.2 ALS Chemex .......................................................................................... 79<br />
11.6 Quality control ........................................................................................................ 80<br />
11.6.1 2009 - 2010 <strong>Gold</strong>en Goose program ...................................................... 80<br />
11.6.2 Accurassay Laboratories Ltd .................................................................. 80<br />
11.6.3 2010 Kodiak sampling program .............................................................. 80<br />
11.7 <strong>Prodigy</strong> QAQC for 2011 ......................................................................................... 81<br />
11.8 Specific gravity determinations ............................................................................... 86<br />
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NI 43-101 <strong>Technic</strong>al Report<br />
11.9 Author’s opinion on 2011 sample preparation, security and analytical<br />
procedures ............................................................................................................. 86<br />
12 Data verification ................................................................................................................. 87<br />
12.1 Site verification ....................................................................................................... 89<br />
13 Mineral processing and metallurgical testing ..................................................................... 90<br />
13.1 Historic test data and reports.................................................................................. 90<br />
13.1.1 Grindability and CIL Efficiency ................................................................ 90<br />
13.2 September 2011 testwork ...................................................................................... 91<br />
14 Mineral resource estimates ................................................................................................ 92<br />
14.1 Summary................................................................................................................ 92<br />
14.2 Disclosure .............................................................................................................. 92<br />
14.2.1 Known issues that materially affect mineral resources ........................... 92<br />
14.3 Assumptions, methods and parameters ................................................................. 95<br />
14.3.1 Data provided ......................................................................................... 96<br />
14.3.2 Geological interpretation and modelling .................................................. 98<br />
14.3.3 Compositing of assay intervals ............................................................... 98<br />
14.3.4 Consideration of grade outliers and estimation method ........................ 101<br />
14.3.5 Variogram analysis ............................................................................... 101<br />
14.3.6 Establishment of block models ............................................................. 103<br />
14.3.7 Grade interpolation parameters ............................................................ 104<br />
14.3.8 Density assignment .............................................................................. 104<br />
14.3.9 Prior mining .......................................................................................... 104<br />
14.3.10 Resource classification ......................................................................... 104<br />
14.3.11 Resource reporting ............................................................................... 105<br />
15 Adjacent properties .......................................................................................................... 107<br />
16 Other relevant data and information................................................................................. 108<br />
17 Interpretation and conclusions ......................................................................................... 109<br />
18 Recommendations ........................................................................................................... 110<br />
19 References ...................................................................................................................... 111<br />
20 Certificate of author, date and signature page ................................................................. 118<br />
Tables<br />
Table 1.1 Indicated Mineral Resource estimate – November 2011 ........................ 10<br />
Table 1.2 Inferred Mineral Resource estimate – November 2011 ........................... 10<br />
Table 4.1 Description of mining title types in Ontario .............................................. 14<br />
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NI 43-101 <strong>Technic</strong>al Report<br />
Table 6.1 Historical tonnages and grades estimated for the Magino Joint<br />
Venture <strong>Gold</strong> Project of McNellen Resources ......................................... 23<br />
Table 6.1 Historical summary ................................................................................. 35<br />
Table 10.1 <strong>Prodigy</strong> drilling details ............................................................................ 54<br />
Table 10.2 <strong>Prodigy</strong> drillhole mineralization intersect results ..................................... 55<br />
Table 13.1 Grindability data ..................................................................................... 90<br />
Table 13.2 Bottle leach results ................................................................................. 91<br />
Table 13.3 Bottle leach results – samples at minus 150 microns ............................. 91<br />
Table 14.1 Indicated Mineral Resource estimate – November 2011 ........................ 92<br />
Table 14.2 Inferred Mineral Resource estimate – November 2011 ........................... 92<br />
Table 14.3 <strong>Prodigy</strong> density data ............................................................................... 93<br />
Table 14.4 Statistics for all 5 m composites ............................................................. 99<br />
Table 14.5 Statistics for mineralized composites .................................................... 100<br />
Table 14.6 Variography by domain ........................................................................ 102<br />
Table 14.7 Indicated mineral resource reported for a range of cut-off grades ......... 105<br />
Table 14.8 Inferred resource reported for a range of cut-off grades ....................... 106<br />
Figures<br />
Figure 4.1 Map showing the location of the Magino property in Ontario .................. 16<br />
Figure 4.2 Claim map of the Magino property .......................................................... 17<br />
Figure 5.1 Topography and accessibility of the Magino property ............................. 20<br />
Figure 7.1 Tectonic subdivisions of the Superior Province within northern<br />
Ontario ................................................................................................... 40<br />
Figure 7.2 Major geological elements of the eastern Wawa Sub-province ............... 40<br />
Figure 7.3 Mineral belts in the Michipicoten-Shebandowan region of the Wawa<br />
Sub-province .......................................................................................... 41<br />
Figure 7.4 Geology of the Magino mine area ........................................................... 44<br />
Figure 7.5 Historical G Zone in the 24+75E drift ...................................................... 46<br />
Figure 7.6 <strong>Gold</strong>-bearing veins on the face of the 23+80E drift ................................. 46<br />
Figure 8.1 Inferred crustal levels of gold deposition showing the different types<br />
of lode gold deposits and the inferred deposit clan ................................. 50<br />
Figure 8.2 Schematic diagram illustrating the setting of greenstone-hosted<br />
quartz-carbonate vein deposits............................................................... 51<br />
Figure 8.3 Location of the Goudreau Lake deformation zone .................................. 52<br />
Figure 10.1 Plan view of <strong>Prodigy</strong> drillhole locations ................................................... 72<br />
Figure 10.2 Drill cross section 300SW....................................................................... 73<br />
Figure 10.3 Drill cross section 1375SW ..................................................................... 74<br />
Figure 10.4 Drill cross section 1180SW ..................................................................... 75<br />
Figure 11.1 <strong>Gold</strong> assays for coarse blank inserted by <strong>Prodigy</strong> .................................. 81<br />
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<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />
Project, Ste. Sault Marie Mining District, Ontario<br />
NI 43-101 <strong>Technic</strong>al Report<br />
Figure 11.2 <strong>Gold</strong> assays for standard CDN-BL-7 ...................................................... 81<br />
Figure 11.3 <strong>Gold</strong> assays for standard CDN-GS-1F ................................................... 82<br />
Figure 11.4 <strong>Gold</strong> assays for standard CDN-GS-2E ................................................... 82<br />
Figure 11.5 <strong>Gold</strong> assays for standard CDN-GS-30B ................................................. 82<br />
Figure 11.6 <strong>Gold</strong> assays for standard CDN-GS-2G................................................... 83<br />
Figure 11.7 <strong>Gold</strong> assays for standard CDN-GS-1G................................................... 83<br />
Figure 11.8 <strong>Gold</strong> assays for standard CDN-GS-1P5C ............................................... 83<br />
Figure 11.9 <strong>Gold</strong> assays for standard CDN-GS-2E ................................................... 84<br />
Figure 11.10 <strong>Gold</strong> assays for standard CDN-GS-2G................................................... 84<br />
Figure 11.11 <strong>Gold</strong> assays for standard CDN-GS-3G................................................... 84<br />
Figure 11.12 <strong>Gold</strong> assays for standard CDN-GS-4B ................................................... 85<br />
Figure 11.13 <strong>Gold</strong> assays for standard CDN-GS-7B ................................................... 85<br />
Figure 11.14 <strong>Gold</strong> assays for standard CDN-GS-P2 ................................................... 85<br />
Figure 11.15 <strong>Gold</strong> assays for standard CDN-GS-P4A ................................................. 86<br />
Figure 14.1 Comparison of declustered composites – surface drilling vs<br />
underground drilling less than 50 metres total length .............................. 94<br />
Figure 14.2 Comparison of declustered composites – surface drilling vs<br />
underground drilling greater than 50 metres total length ......................... 95<br />
Figure 14.3 Distribution of underground drillholes ..................................................... 97<br />
Figure 14.4 Distribution of surface drillholes .............................................................. 98<br />
Figure 14.5 Log histogram of all 5 m composites ...................................................... 99<br />
Figure 14.6 Log histogram of 5 m gold composites for mineralized zones ............... 100<br />
Figure 14.7 Log probability plot indicating mixed populations .................................. 101<br />
. Final 2 November 2011 7 of 118
<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />
Project, Ste. Sault Marie Mining District, Ontario<br />
NI 43-101 <strong>Technic</strong>al Report<br />
1 Summary<br />
The purpose of this <strong>Technic</strong>al Report is to provide an update to the February 2011<br />
Resource Estimate (Ross 2011) and to support the news release of 2 November 2011 in<br />
which an updated Mineral Resource estimate was reported for the Magino gold property.<br />
The February 2011 Resource Estimate was the basis for a preliminary economic<br />
assessment (PEA) completed in April 2011 (Ross et al., 2011). That PEA is now<br />
superseded and an updated PEA will be reported in a subsequent technical report to be<br />
issued by Wardrop, a Tetra Tech Company.<br />
In September 2011, Snowden Mining Industry Consultants <strong>Inc</strong>. (“Snowden”) was<br />
requested by <strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated (“<strong>Prodigy</strong>”), to complete an updated Mineral<br />
Resource Estimate for the Magino gold project in compliance with National Instrument 43-<br />
101 and Form 43-101F1. <strong>Prodigy</strong> was formed in January 2011 by the unification of<br />
Kodiak Exploration Limited (“Kodiak”) and <strong>Gold</strong>en Goose Resources <strong>Inc</strong>orporated<br />
(“<strong>Gold</strong>en Goose”).<br />
The Magino property is approximately 40 km north-east of the town of Wawa, Ontario, and<br />
consists of a former underground mine that was active in the period 1988 to 1992, and<br />
processed 768,678 tons at a recovered grade of 0.137 oz/t Au to produce 105,543 ounces<br />
of gold. Since closure of the underground mine there have been several studies by<br />
<strong>Gold</strong>en Goose to evaluate the feasibility for re-commencing underground operations and /<br />
or commencing open pit operations.<br />
The intention of <strong>Prodigy</strong> is to re-assess the Magino gold deposit as an open pittable<br />
scenario.<br />
Land Manager Mr Randy Sedore confirmed that the issuer’s wholly-owned (i.e., 100%<br />
Registered Ownership) land holdings forming the Magino property comprise seven (7)<br />
patented mining claims (mining and surface rights), four (4) leased mining claims, and<br />
sixty-six (66) unpatented mining claims with a combined area of 5,131,180 acres<br />
(2,076.515 hectares). Additionally, on 9 February, 2011 <strong>Prodigy</strong> announced that it had<br />
signed an option agreement with MPH Resources Corp. that allows <strong>Prodigy</strong> to earn up to<br />
a 100% interest in the 128 ha Gould <strong>Gold</strong> property located adjacent to the Magino<br />
property.<br />
1.1 Geology and Mineralization<br />
The Magino property is located within the Michipicoten greenstone belt of the Archean<br />
Superior Province. The Michipicoten greenstone belt is a structurally and stratigraphically<br />
complex assemblage of volcanic, sedimentary and intrusive rocks that were<br />
metamorphosed to greenschist and amphibolites facies. Several suites of plutonic rocks<br />
ranging in composition from gabbro to monzogranite and syenite occur in and around the<br />
Michipicoten greenstone belt. The Magino property is situated in the Goudreau-Lochalsh<br />
gold district of the Wawa gold camp. Supracrustal rocks in the Goudreau-Lochalsh district<br />
consist of Cycle 2 felsic to intermediate pyroclastic metavolcanics capped by pyritebearing<br />
ironstone. To the north are pillowed, massive and schistose, mafic to intermediate<br />
metavolcanics and minor intercalations of Cycle 3 mafic pyroclastic rock. Several<br />
medium- to coarse-grained quartz dioritic to dioritic sills and/or dikes intrude all<br />
metavolcanic rocks.<br />
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<strong>Gold</strong> mineralization at the former Magino mine is dominantly hosted by the Webb Lake<br />
stock, which intrudes Cycle 3 mafic volcanic rocks. The Webb Lake stock is a felsic<br />
intrusion interpreted as a trondhjemite, but continues to be called a granodiorite in mine<br />
terminology. The long axis of the Webb Lake stock is parallel to the regional supracrustal<br />
rock stratigraphy. The Webb Lake stock is ENE-striking and has a steep northerly dip.<br />
The granodiorite (trondhjemite) contains 5-10% veins of carbonate, quartz, tourmaline and<br />
pyrite in various orientations.<br />
The current focuses of <strong>Prodigy</strong>’s evaluation are zones of low-grade gold-bearing quartzsericite-pyrite<br />
mineralization that include narrow higher-grade gold-bearing veins, the<br />
target of former underground mining. <strong>Prodigy</strong> commenced a surface drilling program in<br />
early 2011 to in-fill and replace earlier sample data. The database used for the current<br />
study update (this report) includes this recent drilling information.<br />
1.2 Mineral Resource Estimate<br />
The region of interest covers 1,350 metres of the 075 degree trending Webb Lake<br />
grandiorite stock and the alteration zones that aggregate up to 300 metres width, and dip<br />
steeply to depths of up to 600 metres. At Magino the Webb Lake stock is covered by up<br />
to 30 m thickness of fluvio-glacial material. The felsic and mafic volcanic country rock<br />
surrounding the stock does contain examples of low grade mineralization encountered by<br />
drilling, however the main focus remains the broad low-grade alteration zones within the<br />
stock. A late stage diabase dyke transects the stock.<br />
The database provided to Snowden by <strong>Prodigy</strong> on 16 September 2011 contains 512<br />
surface diamond drillholes (for a total of 103,491 metres; average length 202 m) and 980<br />
underground diamond drillholes (for a total of 60,345 m; average length 62 m).<br />
Ninety-four surface drillholes were completed in the period from 1997 to 2009 and<br />
comprise HQ and NQ diameter core. All underground drillholes were completed in the<br />
period 1986 to 1991 and are dominated by AQ diameter core with some BQ diameter<br />
core, clearly clustered around the underground workings and, in some cases subsequently<br />
stoped out. Since the sample volumes of the underground drill cores are markedly less<br />
than the surface drill cores, and because of potential bias contained within some samples,<br />
Snowden elected to use only the assays from the surface drillholes and those<br />
underground drill holes relatively unbiased for the grade estimates. The underground<br />
diamond drillholes retained for the resource estimates comprised 484 drillholes for a total<br />
of 48,896 m, average length 100 m. Assay information from all of the underground drill<br />
cores however was used to develop the geological interpretation of the mineralized<br />
bodies.<br />
A Vulcan block model with cell dimensions of 10m (X) 10m (Y) 5m (Z) was coded to reflect<br />
the surface topography, base of overburden, Webb Lake granodiorite contacts, domain<br />
solids, and the late stage diabase dyke. A 3D wireframe model of the underground<br />
development and stopes was stored as percent volumes in the block model to ensure that<br />
the reported mineral resource estimates are depleted for prior mining. The <strong>Prodigy</strong><br />
geologists have interpreted 17 structural domains to identify the zones of mineralization in<br />
the drill cores.<br />
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<strong>Gold</strong> grades were estimated from 5 m length-weighted un-cut composites into the<br />
interpreted mineralized blocks by ordinary kriging, using parameters established from<br />
analysis of domain variography. The impact of clustered high gold grades was controlled<br />
by using a combination of “sample per hole” restrictions, octant search and maximum<br />
distance extrapolation restrictions for grades above 22 g/t Au. Minimum / maximum<br />
numbers of composites used for estimation were set to 3 / 14 per block. Discretisation<br />
was set to 2 x 2 x 1.<br />
Density factors of 2.72 (SG) were assigned to granodiorite and mafic to felsic country rock<br />
based on approximately 2,300 new specific gravity determinations of core specimens by<br />
<strong>Prodigy</strong>.<br />
A conceptual pit shell was developed by Snowden using Whittle software in order to<br />
identify those parts of the block model that have reasonable prospects for eventual<br />
economic extraction. Parameters used were: 52 degree (overall pit slope); $1.25 /t mining<br />
cost; $1500 per oz gold price; 95% process recovery; $7 /t process cost. Mineralized<br />
blocks that lie within the conceptual pit shell have been classified as either Indicated or<br />
Inferred Mineral Resource estimates. Blocks lying outside the conceptual pit were left<br />
unclassified and have not been reported. Geostatistical parameters from the kriging<br />
system were used to identify regions of better confidence estimates.<br />
Snowden has applied an Inferred classification to blocks in the mineral resource that lie<br />
within low confidence regions and below 150 metres and within the limit of the conceptual<br />
pit shell.<br />
Above a depth from surface of 150 metres, resource blocks that lie within greater<br />
confidence regions have been classified as Indicated resource blocks. Snowden has not<br />
classified any Measured blocks after considering the uncertainty in geological<br />
interpretation and extent of the underground workings, the high nugget environment, short<br />
ranges of gold grade continuity, use of assigned densities and the current drill spacing.<br />
Snowden notes that <strong>Prodigy</strong> <strong>Gold</strong> has an ongoing drill program to in-fill the existing drill<br />
pattern.<br />
Mineral Resource estimates for the Magino property are reported in categories of<br />
Indicated and Inferred, in accordance with the CIM Definition Standards - For Mineral<br />
Resources and Mineral Reserves (CIM Code), as follows:<br />
Table 1.1 Indicated Mineral Resource estimate – November 2011<br />
Category<br />
CIM<br />
Code<br />
Reporting<br />
cut-off<br />
grade g/t<br />
Au<br />
Density<br />
Tonnes<br />
X 1,000<br />
Grade<br />
g/t Au<br />
<strong>Gold</strong><br />
grams<br />
X 1,000<br />
<strong>Gold</strong><br />
ounces<br />
X 1,000<br />
Indicated 0.35 2.72 67,555 1.00 67,690.5 2,176.3<br />
Table 1.2 Inferred Mineral Resource estimate – November 2011<br />
Category<br />
CIM<br />
Code<br />
Reporting<br />
cut-off<br />
grade g/t<br />
Au<br />
Density<br />
Tonnes<br />
X 1,000<br />
Grade<br />
g/t Au<br />
<strong>Gold</strong><br />
grams<br />
X 1,000<br />
<strong>Gold</strong><br />
ounces<br />
X 1,000<br />
Inferred 0.35 2.72 54,242 0.99 53,537.3 1,721.2<br />
In the above Mineral Resource tables there may be inconsistencies due to rounding.<br />
Estimates are rounded since the figures are not precise calculations.<br />
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There are no Mineral Reserves reported in this <strong>Technic</strong>al Report. Mineral Resources are<br />
not Mineral Reserves and do not have demonstrated economic viability. There is no<br />
certainty that all or any part of the Mineral Resource will be converted into Mineral<br />
Reserve.<br />
1.3 Recommendations<br />
The authors make the following recommendations:<br />
Continue the current in-fill drilling and sampling program so that all of the historic<br />
assay information can be replaced for use in subsequent mineral resource estimates.<br />
Where possible, re-sample existing core and ensure QAQC programs are in place,<br />
thus making use of much of the historic core.<br />
Update the drillhole and sample database with consistent lithogical, alteration and<br />
structural records.<br />
Complete a new series of 3D interpretations to map the distribution of quartz-sericitepyrite<br />
alteration and veins and define deeper depth mineralization. Consider multielement<br />
assays to assist in characterization of alteration zones and geological<br />
interpretation.<br />
Use the November 2011 updated resource block model for a preliminary economic<br />
assessment.<br />
Refine the current 17 structural domain solids to reflect the latest geologic<br />
interpretation and to honour alteration zones.<br />
Complete a drill hole spacing study report to establish minimum standards for<br />
resource to reserve conversion.<br />
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2 Introduction<br />
This <strong>Technic</strong>al Report has been prepared by Snowden Mining Industry Consultants<br />
(“Snowden”) for <strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated (“<strong>Prodigy</strong>”). <strong>Prodigy</strong> was formed from the<br />
unification of Kodiak Exploration Limited (“Kodiak”) and <strong>Gold</strong>en Goose Resources<br />
<strong>Inc</strong>orporated (“<strong>Gold</strong>en Goose”) in 2011.<br />
The purpose of the <strong>Technic</strong>al Report is to support the news release of 2 November 2011<br />
in which an updated Mineral Resource estimate was reported for the Magino gold property<br />
located in Ontario.<br />
Data provided to Snowden was used as the basis for the study. A Gemcom drillhole and<br />
assay database was reviewed by Snowden, and is supported by documentation for<br />
numerous drilling programs covering the period from the early 1980s to the present.<br />
The author has made two personal inspections of the Magino gold property in 2011 during<br />
which time <strong>Prodigy</strong> was undertaking core drilling programs.<br />
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3 Reliance on other experts<br />
The authors have relied upon an opinion provided by Mr Randy Sedore in respect of the<br />
status of the mineral titles held by <strong>Prodigy</strong>’s subsidiary, <strong>Gold</strong>en Goose. This opinion is<br />
detailed in Section 4.2.<br />
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4 Property description and location<br />
Information in this section has been excerpted from Turcotte, B., and Pelletier, C., (May<br />
2009) and updated.<br />
4.1 Location<br />
The Magino property is approximately 40 kilometres (“km”) northeast of the town of Wawa,<br />
Ontario, on NTS map sheet 42C/08 (Figure 4.1). The project is located in Finan<br />
Township, which falls within the Sault Ste. Marie mining district of Ontario. The Magino<br />
mine is about 14 km southeast of the town of Dubreuilville. The approximate UTM<br />
coordinates for the geographic centre of the property are 685900E, 5351800N (Zone 16,<br />
NAD 83). The approximate position of the Magino mine is 689000E, 5351000N.<br />
4.2 Status of mining titles<br />
Mr Randy Sedore acts as the Land Manager for <strong>Gold</strong>en Goose (a subsidiary of the issuer)<br />
with regards to the exploration and mining lands that form the Magino property<br />
(Figure 4.2). He confirmed on 15 December 2011 that the issuer’s wholly-owned (i.e.,<br />
100% Registered Ownership) land holdings forming the Magino property comprise seven<br />
(7) patented mining claims (mining and surface rights), four (4) leased mining claims, and<br />
sixty-six (66) unpatented mining claims with a combined area of 5,131,18 acres<br />
(2,076.515 hectares).<br />
The four (4) leased mining claims are contiguous and consist of seven (7) mining titles<br />
(SSM 581948 to 581953 and SSM 722481) (Table 4.1). <strong>Gold</strong>en Goose owns the mining<br />
and surface rights on these leased mining claims, except mining title SSM 722481 for<br />
which <strong>Gold</strong>en Goose owns only the mining rights.<br />
The mineralized area hosting the underground workings is located just north of Webb<br />
Lake near the south-eastern corner of the property (Figure 4.2).<br />
Table 4.1<br />
Description of mining title types in Ontario<br />
Mining Titles<br />
Unpatented Mining Claims<br />
Leased Mining Claims<br />
Patented Mining Claims<br />
(from Turcotte, B., and Pelletier, C., (May 2009)<br />
Associated Rights<br />
Exploration for mineral substances<br />
Right to subsurface only<br />
Work required for renewal of right<br />
20-year period<br />
No obligation or work required<br />
Payment of annual fee<br />
Surface rights limited to mining activities<br />
For life<br />
No obligation or work required<br />
Payment of annual fee<br />
Surface rights limited to mining activities<br />
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On 1 November, 1985, an agreement was reached between Cavendish Investing Ltd<br />
(“Cavendish”) and Muscocho Explorations Ltd (“Muscocho”). At the time, Cavendish<br />
Investing Ltd owned a 50% interest in the Magino property, and McNellen Resources <strong>Inc</strong>.<br />
(“McNellen”), formerly Rico Copper (1966) <strong>Inc</strong>., the other 50%.<br />
The agreement stipulated that Muscocho would purchase all of Cavendish’s right, title and<br />
interest in and to the Joint Venture with McNellen, and that Cavendish would retain a 10%<br />
royalty of Muscocho’s share of net profits derived from its participation in the Joint<br />
Venture. The agreement further stipulated that if Muscocho assigns any or all part of its<br />
interest in the Joint Venture to another party or parties, it will cause the assignee(s) of<br />
such interest to enter into an agreement with Cavendish under which such assignee(s) will<br />
assume all of Muscocho’s obligations under the terms of the agreement, including the<br />
payment of said royalty to Cavendish.<br />
Net profits for the purposes of the above paragraph shall mean the monies received by<br />
Muscocho from its interest in the Joint Venture after Cavendish has paid Muscocho for all<br />
its costs incidental to the Joint Venture incurred before and after the closing date of the<br />
agreement.<br />
In 1996, three companies; Muscocho Explorations, McNellen Resources and Flanagan<br />
McAdam Resources <strong>Inc</strong>., combined to form <strong>Gold</strong>en Goose, which emerged with a 100%<br />
interest in the Magino property. <strong>Gold</strong>en Goose thus became an assignee of Muscocho’s<br />
obligation to pay Cavendish a 10% royalty for its share of the net profits, after<br />
reimbursement of all costs incurred by Muscocho since November 1985. <strong>Prodigy</strong> cannot<br />
reasonably estimate the likelihood of a royalty being paid, nor the amount.<br />
On 31 August, 2010, Kodiak and <strong>Gold</strong>en Goose announced that they entered into a<br />
definitive merger agreement and plan of arrangement dated 30 August, 2010 wherein<br />
Kodiak would acquire all of the issued and outstanding shares of <strong>Gold</strong>en Goose. The<br />
arrangement effectively combined the assets of both companies on a consolidated basis,<br />
with <strong>Gold</strong>en Goose becoming a wholly-owned subsidiary of Kodiak.<br />
On 4 January, 2011 <strong>Prodigy</strong> announced that it was the named unification of Kodiak and<br />
<strong>Gold</strong>en Goose.<br />
On 9 February, 2011 <strong>Prodigy</strong> announced that it had signed an option agreement with MPH<br />
Resources Corp. that allows <strong>Prodigy</strong> to earn up to a 100% interest in the 128 ha Gould<br />
gold property located adjacent to the Magino property. The option property is identified as<br />
numbers 4218037 and 4218038 in Figure 4.2.<br />
<strong>Prodigy</strong> has advised that the terms of the option agreement, subject to TSXV approval,<br />
are as follows:<br />
<strong>Prodigy</strong> will pay MPH $10,000 and issue to MPH 50,000 common shares of <strong>Prodigy</strong><br />
("Shares") following acceptance by the TSXV of this transaction.<br />
<strong>Prodigy</strong> can earn a 60% interest in the Property within two years of TSXV approval by<br />
paying MPH an additional $35,000, issuing MPH an additional 150,000 Shares and<br />
incurring expenditures of $250,000.<br />
<strong>Prodigy</strong> can earn a 100% interest in the Property within three years of TSXV approval<br />
by paying MPH an additional $25,000 ($70,000 in aggregate), issuing MPH an<br />
additional 200,000 Shares (400,000 Shares in aggregate), incurring additional<br />
expenditures of $500,000 ($750,000 in aggregate) and granting MPH a net smelter<br />
returns royalty of 1%, which may be repurchased for $1,000,000.<br />
The Property is subject to an additional 2% net smelter returns royalty held by prior<br />
owners, half of which may be acquired for $1,000,000.<br />
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Figure 4.1<br />
Map showing the location of the Magino property in Ontario<br />
(after Turcotte, B., and Pelletier, C., (May 2009))<br />
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Figure 4.2<br />
Claim map of the Magino property<br />
4.3 Environmental matters<br />
<strong>Gold</strong>en Goose retained AMEC Earth & Environmental, a division of AMEC Americas<br />
Limited, to carry out a dam safety inspection of the tailings dams at the Magino mine<br />
(Yong et al., 2008). The inspection was conducted in accordance with guidelines<br />
applicable to structures in Ontario, and also took into account the site’s closure plan<br />
requirements and the recommendations provided in AMEC’s previous dam safety<br />
inspection report (AMEC Earth and Environmental Ltd, 2002). With the exception of some<br />
requirements for erosion protection maintenance, all three dams appeared to be in stable<br />
condition with no visible signs of distress or instability. The conditions of the dams are not<br />
expected to change because the tailings are no longer being discharged to the primary<br />
pond.<br />
Since 1992, the site has been kept on a care and maintenance basis (temporary<br />
suspension) during which time the issuer was pursuing financing opportunities that could<br />
potentially lead to the resumption of mining operations. Personnel were kept on site to<br />
provide security and ensure compliance with the Certificate of Approval (C of A #4-0115-<br />
88-896) and other environmental requirements. In 1996, an authorization to reduce<br />
sampling frequency was granted for the Magino mine. These changes can only be<br />
implemented when the mine is not in operation. Once the mine reactivates, the<br />
frequencies specified in the Certificate of Approval must be re-implemented. The annual<br />
toxicity sample for the Rainbow Trout 96-hour LC50 bioassay toxicity test was collected<br />
from the secondary polishing pond in June 2009. Water was no longer being pumped<br />
from the mine, so the mine water settling pond was dry and sampling the pond was not<br />
required.<br />
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A detailed mine site characterization was completed for the Magino mine as part of the<br />
mine closure plan. The original plan, titled “Magino Mine Closure Plan – Muscocho<br />
Explorations Limited” was prepared in October 1992 by Environmental Applications Group<br />
Limited (Young and Simms, 1992). It was revised in 1993 by HBT AGRA Limited (Young<br />
and Simms, 1993). The mine site characterization is part of the February 2003<br />
amendment titled “Closure Plan - Amendment No.1, <strong>Gold</strong>en Goose Resources <strong>Inc</strong>.,<br />
Magino Mine Site” (Dyck and Bleiker, 2003). The changes in the amendment are in<br />
accordance with the requirements laid out in Part VII of the Ontario Mining Act and have<br />
been formatted as per Ontario Regulation 240/00 and the associated Mine Rehabilitation<br />
Code of Ontario. The 2003 closure plan will have to be updated to reflect the current site<br />
conditions and the required Financial Assurance for completing mine site rehabilitation.<br />
In addition, the following documents will be required if mining operations resume:<br />
A Certificate of Authorization for Air under the Environmental Protection Act,<br />
Regulation 346.<br />
A permit to take water (PTTW) for dewatering of the mine.<br />
A permit to take water (PTTW) from Webb Lake.<br />
Waste Generator Registration from the Ontario Ministry of Environment (MOE), for<br />
waste generated on site such as oils, solvents, etc.<br />
A Notice of Project Status (NOPS) must be submitted to change the current status of the<br />
mine from Temporary Suspension to Advanced Exploration or Mine Production status<br />
under Regulation 240/00. In addition, a Notice of Project must be submitted to the<br />
Ministry of Labour.<br />
A First Nation Consultation must be held with any First Nations potentially affected by the<br />
project. Such consultations would address a requirement in Ontario's mining regulations,<br />
as well as various requirements for other approvals. The project lies within the Finan and<br />
Jacobson townships. The Michipicoten and Missanabie Cree First Nations will have to be<br />
apprised and the consultation process initiated. The Métis Nation of Ontario should also<br />
be consulted.<br />
In 2010 AMEC Earth & Environmental conducted a hydro-geological study for <strong>Gold</strong>en<br />
Goose (McBride, T.I. and Duckworth, P., 2010).<br />
On 29 September 2011, <strong>Prodigy</strong> announced that it had signed an agreement with EBA, a<br />
Tetra Tech Company, to provide environmental baseline studies at Magino.<br />
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5 Accessibility, climate, local resources, infrastructure<br />
and physiography<br />
Information in this section has been excerpted from Turcotte, B., and Pelletier, C., (May<br />
2009) and updated.<br />
5.1 Accessibility<br />
The closed Magino mine is located in Finan Township, Ontario, Canada, approximately<br />
40 km northeast of Wawa. The Magino mine can be reached by travelling along a 14-km<br />
all-weather gravel road (Chemin Goudreau) that turns off Highway 519 just west of the<br />
town of Dubreuilville (Figure 5.1). Dubreuilville is on Highway 519, 30 km east of the<br />
junction of highways 17 and 519. This junction is about 40 km north of Wawa on Highway<br />
17. The Magino mine is also connected to the rail sidings of Lochalsh (14 km to the east,<br />
Canadian Pacific Railway) and Goudreau (7 km to the west, Algoma Central Railway) by<br />
means of a gravel road. A 44-kV power line extends from Goudreau to Lochalsh and<br />
currently services the Magino mine. Most of the former surface buildings have been<br />
dismantled, and only the electrical and carpenter shops remain in service. The<br />
underground workings have been flooded since the early 1990s and are sealed to prevent<br />
entry.<br />
5.2 Climate<br />
The mean annual temperature for the area is slightly above the freezing point at 1 °C. The<br />
average July temperature is 20 °C and the average January temperature is -15 °C.<br />
Average annual precipitation is 650 mm. Rainfall is highest in September, averaging<br />
90 mm. Snow typically falls from October to May, but the peak is from November to March<br />
when the monthly average reaches 30 mm (expressed in mm of water).<br />
5.3 Local resources<br />
The area is well serviced by mining and milling industries. The town of Dubreuilville,<br />
population 900, is the closest service community. The Island <strong>Gold</strong> mine (operated by<br />
Richmont) is 1.5 km east of the Magino mine, and the Eagle River mine (Wesdome <strong>Gold</strong><br />
Mines) is 80 km to the west. The Hemlo operations (Barrick <strong>Gold</strong> Corp) are located<br />
approximately 150 km to the northwest. General labour and experienced workers are<br />
readily available in Wawa, Sault Ste. Marie and Thunder Bay.<br />
5.4 Physiography<br />
The Magino mine is located in the geological Wawa Sub-province of the Canadian Shield.<br />
The topography of the area is characterized by low ridges and hills (up to 50 m of relief),<br />
flanked by generally flat areas of glacial outwash, swamps and numerous lakes and bogs.<br />
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Figure 5.1<br />
Topography and accessibility of the Magino property<br />
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6 History<br />
Information in this section has been excerpted from Turcotte, B., and Pelletier, C., (May<br />
2009) and updated with information from Turcotte et al (2010).<br />
6.1 Prior to 1940s<br />
The area around the towns of Goudreau and Lochalsh has been prospected for many<br />
years. The discovery of iron ore around the turn of the twentieth century in the<br />
Michipicoten area southwest of Wawa led to a search for similar deposits along the iron<br />
ranges further north. In places, the iron formations near Goudreau were found to contain<br />
pyrite in sufficient quantity to form the basis of a mining industry of considerable<br />
importance at one time. Between 1916 and 1919, about 250,000 tons of pyrite were<br />
produced, but a lack of markets for sulphuric acid at the close of World War I led to the<br />
abandonment of the mines and the dismantling of the acid plants that had been erected 2<br />
miles east of Goudreau.<br />
Meanwhile, gold was discovered in 1918 in the vicinity of Goudreau, and prospecting and<br />
mining have continued since then, being particularly active from the mid-1920s to the<br />
beginning of World War II. The available records show that gold production from the<br />
Goudreau area was somewhat sporadic.<br />
In the fall of 1917, D.J. McCarthy and W.J. Webb of Sault Ste. Marie staked the current<br />
patented claims for pyrite after Rand Consolidated and Nichols Chemical Company<br />
started their operations in the district. <strong>Gold</strong> was discovered on the property on what is<br />
now claim 2050. Between then and 1925, when McCarthy-Webb Goudreau Mines Limited<br />
was formed to take over and develop the claim group, two shallow shafts or pits had been<br />
sunk and some stripping and 1,100 feet (335.3 m) of surface diamond drilling had also<br />
been completed.<br />
Between 1925 and 1933, McCarthy-Webb Goudreau Mines excavated test pits and<br />
trenches on the property while trying to interest major companies. One such company<br />
was Consolidated Mining and Smelting Company, which drilled an unknown number of<br />
metres (“m”) in five (5) surface holes. McCarthy-Webb Goudreau Mines constructed and<br />
operated a small test mill with a daily capacity of 25 tons. In 1934, this mill processed 421<br />
tons of ore and extracted 144 ounces of gold for a recovered gold grade of 0.342 oz/t 1 .<br />
In 1935, Algoma Summit started underground development by sinking an inclined shaft at<br />
-33° on the Grey Vein to a vertical depth of 100 feet (30.5 m). During 1936, a 500-ton-perday<br />
mill was constructed, consisting of amalgamation and flotation sections. According to<br />
the existing records, underground development was minor.<br />
A report written in 1937 by consulting mining engineer, M.C.H. Little, states that extremely<br />
poor mining practices were in effect throughout the initial production stage, resulting in a<br />
significant amount of over-break in the stopes (dilution up to 100-200%), and the<br />
processing of substantial amounts of waste rock derived from development drifting and<br />
cross-cutting. Poor production planning also resulted in the initial mill feed coming from<br />
low-grade sections of the D-Zone where ground conditions were exceptionally poor as a<br />
result of the hanging wall felsite. Once the D-Zone open cut was abandoned, mill<br />
recoveries improved, though it only operated at 25% efficiency.<br />
1 Tons = short tons; oz/t = ounces per short ton; tonnes or t = metric tons<br />
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Between April and August 1937, the mill processed 26,801 tons of ore from the open pit.<br />
The grade was 0.042 oz/t and 1,125 ounces of gold were extracted. <strong>Gold</strong> recovery in the<br />
mill was about 79%. At the end of August 1937, production from the open pit was<br />
abandoned and ore came only from underground stopes.<br />
Production continued through to 1938 when the inclined shaft was deepened to a vertical<br />
depth of 200 feet. Algoma Summit apparently developed and mined some stopes in the<br />
A-Zone and D-Zone, but mining conditions did not improve that year. Toward the end of<br />
1938, control of the property passed to a newly formed company called Magino <strong>Gold</strong><br />
Mines Ltd. The company quickly began a detailed underground exploration program<br />
consisting of diamond drilling, mapping, sampling and drifting in an effort to develop a<br />
proven ore reserve inventory. From 1934 to 1939, the company drilled twenty-three (23)<br />
underground diamond drillholes totalling 4,190 feet (1,277 m). From 1938 to 1940,<br />
Algoma Summit and Magino <strong>Gold</strong> Mines Ltd drifted 3,613 feet (1,101 m) and cross-cut<br />
945 feet (288 m) on the first level, and drifted 2,248 feet (685 m) and cross-cut 757 feet<br />
(230 m) on the second level. In 1939 and 1940, Magino <strong>Gold</strong> Mines Ltd drilled forty-two<br />
(42) underground diamond drillholes totalling 2,124 feet (647 m).<br />
Just before Magino <strong>Gold</strong> Mines acquired the property, the M. J. O’Brien interests, who<br />
operated the nearby Cline gold mine, drilled a series of holes east of the mill buildings and<br />
discovered a new gold zone referred to as the E-Zone. Monthly reports from 1940<br />
referred to these drillholes. By the late 1940s, Magino was unable to obtain the financing<br />
needed to continue ore development, and there was undoubtedly a growing shortage of<br />
men and supplies due to wartime rationing. As a consequence, the mine was closed and<br />
the mill sold in 1942. Between 1934 and 1939, 116,627 tons were milled with a grade<br />
recovery of 0.075 oz/t (8,776 ounces).<br />
6.2 1972 to 1996 McNellen Resources and Muscocho<br />
Explorations<br />
The Magino property lay dormant until 1972 when Mr. C. McNellen of Toronto carried out<br />
a privately financed six (6)-hole drilling program totalling 2,000 feet (610 m). The property<br />
remained idle until 1981 when Rico Copper (1966) Limited (later renamed McNellen<br />
Resources <strong>Inc</strong>.) conducted a diamond drilling program to evaluate the depth continuity of<br />
the A-Zone and B-Zone, and the lateral continuity of the E-Zone. A total of 6,915 feet<br />
(2 107 m) was drilled in sixteen (16) holes.<br />
McNellen Resources entered into a joint venture with Cavendish Investing Ltd on<br />
25 September, 1981. Under the terms of the agreement, Cavendish could earn an<br />
undivided 50% interest in the property by spending C$900,000 on the property. Work on<br />
the property started on 6 October, 1981. Surface facilities were installed and dewatering<br />
of the underground workings dewatered. Pumping started on 26 November, 1981 and<br />
was completed on 21 January, 1982.<br />
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<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />
Project, Ste. Sault Marie Mining District, Ontario<br />
NI 43-101 <strong>Technic</strong>al Report<br />
S. L. MacDougall O.L.S. of Sault Ste. Marie conducted a surface survey in 1981. The<br />
surface drillholes from the 1981 summer drilling were tied into several surface triangulation<br />
points and the old mill foundation. A sun-shot was taken to determine true north. The<br />
underground workings were resurveyed and the survey carried to surface and tied into the<br />
surface survey. A channel sampling program was carried out on both levels. Channel<br />
samples were cut into the drift backs using a stoping machine and a power air hammer. A<br />
total of 1,723 individual samples were collected. Seventy-five (75) test holes, 20 feet long<br />
(6.1 m), were drilled into the drift walls. Sludge samples were assayed. Cuttings were<br />
collected every 2.5 feet (0.76 m) for a total of 600 samples. A total of 8,581 feet (2,615 m)<br />
of forty-two (42) AQ holes was completed underground. Old core was re-logged and<br />
re-sampled.<br />
During the fall of 1982, a total of 6,798 feet (2,072 m) of surface drilling was completed in<br />
thirty-eight (38) holes. Old drill core was re-logged and about 683 new samples were<br />
taken, revealing a number of “ore-grade” intersections. Magnetic, electromagnetic and<br />
geological surveys were also carried out on the Magino property.<br />
In 1983, James Wade Engineer Ltd was contracted by McNellen Resources <strong>Inc</strong>., to<br />
prepare a pre-feasibility study for the Magino Joint Venture <strong>Gold</strong> Project. James Wade<br />
Engineer Ltd calculated a mineral inventory estimate over a minimum of 4.0 feet (1.2 m)<br />
and at two “cut back” levels for high-grade assays. Table 6.1 presents the reported<br />
tonnages and grades.<br />
Table 6.1<br />
Historical tonnages and grades estimated for the Magino Joint Venture<br />
<strong>Gold</strong> Project of McNellen Resources 2<br />
Classification Short tons Grades cut to 2 oz Grades cut to 1 oz<br />
Proven 17,091 0.220 0.168<br />
Probable 151,876 0.214 0.176<br />
Possible 120,913 0.190 0.163<br />
Inferred 70,623 0.150 0.142<br />
Proven + Probable 168,967 0.215 0.175<br />
James Wade Engineer Ltd concluded that the 1983 mineral inventory was insufficient to<br />
support a viable independent mining and milling operation on the property given the gold<br />
prices of the early 1980s. The report also stated that reserves of three-quarters to one<br />
million tons would be required to support this scale of mining using a mill with a capacity of<br />
500 tons per day.<br />
2 Resources and / or reserves reported are historical. These historical “resources” and/or “reserves”<br />
should not be relied upon because it is unlikely they conform to current Regulation 43-101 criteria or to<br />
CIM Definition Standards, and they have not been verified to determine their relevance or reliability. They<br />
are included in this section for illustrative purposes only and should not be disclosed out of context.<br />
. Final 2 November 2011 23 of 118
<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />
Project, Ste. Sault Marie Mining District, Ontario<br />
NI 43-101 <strong>Technic</strong>al Report<br />
At the request of Prophet Resources Ltd and June Resources <strong>Inc</strong>., D. A. Bourne, a<br />
professional engineer and consulting geologist, carried out a re-assessment and<br />
evaluation of the Magino gold mine in 1984. The mineral inventory was evaluated at<br />
228,734 tons 2 grading 0.35 oz/t Au to a vertical depth of 400 feet (122 m) and over a<br />
minimum mining width of 4.0 feet (1.20 m). The “cut back” level for high-grade assays<br />
was 2 oz. Prior to a production decision and in order to progress to a proper feasibility<br />
study, Donald A. Bourne recommended a program of 18,000 feet (5,485 m) of surface<br />
diamond drilling. From 5 July to 19 September, 1984, McNellen Resources completed<br />
5,122 feet (1,561 m) of surface diamond drilling in twenty (25) holes on the Magino<br />
property without Prophet Resources Ltd or June Resources <strong>Inc</strong>.<br />
Muscocho Explorations Ltd acquired a 50% interest in the property from Cavendish<br />
Resources in the fall of 1985. From September to December, they carried out a surface<br />
drilling program west of the main mine workings. During this period, twenty-nine (29)<br />
diamond drillholes were completed on the Magino property for a total of 16,441 feet (5,011<br />
m). The objective of the program was to delineate the gold-bearing zones outlined by<br />
McNellen Resources in 1984.<br />
Surface drilling continued in 1986. During the period of June 1986 to December 1986,<br />
sixty-four (64) diamond drillholes (BQ diameter) were drilled on the Magino property for a<br />
total of 12,372 feet (3,771 m). Exploratory underground development started in June. A<br />
ramp was collared at 25+00 E, 5+50 S. From June to December 1986, 3,075 feet (937 m)<br />
of underground advances were completed, consisting of 1,900 feet (579 m) of ramp, 755<br />
feet (230 m) of crosscut (the crosscut was established on line 20+50 E), and 420 feet (128<br />
m) of drifting.<br />
Five (5) drift headings were driven on three potential ore zones, 200 feet (61 m) below<br />
surface. The haulage ramp was collared south of the granodiorite stock, and the<br />
dimensions were 10 feet (3 m) by 16 feet (4.9 m). The best drift results, based on face<br />
sampling, included 0.298 oz/t over an 8.0-foot horizontal width along a strike length of 120<br />
feet (35.50 m), and 0.25 oz/t over a 4.0-foot horizontal width along a strike length of 50<br />
feet (15 m). A total of 5,508 feet (1,679 m) of underground drilling in twelve (12) diamond<br />
drillholes (AQ diameter), completed from the ramp, helped delineate eight (8) potential ore<br />
zones (A through H) east of the crosscut between sections 2070E and 2450E. Estimated<br />
property-wide “inferred reserves”, as at the end of 1986, stood at 1,926,645 tons grading<br />
0.251 oz/t to the 500 foot level 3 . These reserves were derived from four laterally<br />
contiguous zones: Mine, North-east, West and West Extension (Bourne et al., 1987).<br />
Sample processing and assaying was conducted on-site from 1986 (Magino JV 1986 Year<br />
End report).<br />
Drillholes (with few exceptions) were sampled in their entirety. Samples were analysed for<br />
gold either by AA (“atomic absorption”) or FA (“fire assay”) methods, or by both methods if<br />
the primary AA value was greater than 800 ppb Au (0.8 g/t Au). On-site assaying was<br />
done on 20 g pulp by AA and where the value exceeded 800 ppb then the coarse reject<br />
fraction was re-assayed using a 1 assay-ton gravimetric FA. The reject was crushed to<br />
3/8 inch. Consequently obtaining a representative split of discrete particles of gold was<br />
not likely (Perkins, 1997).<br />
3 Resources and / or reserves reported are historical. These historical “resources” and/or “reserves”<br />
should not be relied upon because it is unlikely they conform to current Regulation 43-101 criteria or to<br />
CIM Definition Standards, and they have not been verified to determine their relevance or reliability. They<br />
are included in this section for illustrative purposes only and should not be disclosed out of context.<br />
. Final 2 November 2011 24 of 118
<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />
Project, Ste. Sault Marie Mining District, Ontario<br />
NI 43-101 <strong>Technic</strong>al Report<br />
Mining and construction of a mill with a capacity of 400 tons per day started in 1987.<br />
Surface drilling continued early in 1987. From January 1987 to December 1987, ninetytwo<br />
(92) diamond drillholes (BQ diameter) were drilled on the Magino property for a total of<br />
54,359 feet (16,569 m). An additional 51,330 feet (15,645 m) were drilled underground<br />
from drifts in 187 diamond drillholes (AQ diameter). Underground development was also<br />
carried out.<br />
The first gold bar was poured in June of 1988 and production began in October of 1988.<br />
From February 1988 to December 1988, Muscocho and McNellen drilled 213 underground<br />
diamond drillholes totalling 57,434 feet (17,506 m). Between January 1988 and June<br />
1988, nine (9) surface holes were completed for a total of 19,545 feet (5,957 m).<br />
Underground development and mining work was also carried out.<br />
There was no surface drilling in 1989, although 53,493 feet (16,305 m) were drilled<br />
underground from drifts in 293 diamond drillholes. Underground development and mining<br />
work was also carried out. By the end of December 1989, the mine had processed<br />
202,764 tons of ore, which returned 29,350 ounces of gold for an average recovered<br />
grade of 0.145 oz/t. From 1988 to sometime in 1989, mining was mainly accomplished by<br />
shrinkage stoping, which produced an average grade of 0.20 oz/t Au. In 1989, mill<br />
throughput was increased to 640 tons per day and production was mainly from long-hole<br />
stopes at an average grade of 0.12 oz/t. The reduced mining cost for the long-hole stopes<br />
was offset by substantial dilution, with a resultant increase in the cost per ounce mined.<br />
In 1990, underground drilling amounted to 15,178 feet (4,626 m) in 166 holes, compared<br />
to only 1,081 feet (329 m) in 13 holes in 1991. There was no surface drilling in either year,<br />
although underground development and mining work continued.<br />
Neither underground nor surface drilling was carried out in 1992. The 650 ramp was<br />
driven down to a depth of 685 feet (back elevation), and work was started to open up the<br />
exploration/mining level. Almost 1,100 feet of exploration drifting and cross-cutting was<br />
carried out. Several rounds of the 650 exploration drift were mucked to the mill. The 680<br />
level was ready for further detailed exploration, which was considered necessary if it was<br />
to be established as the future source of mill feed. The mine closed in mid-1992 due to<br />
high operating costs, and the underground workings were allowed to flood. From 1988 to<br />
1992, the Magino mine processed 768,678 tons at a recovered grade of 0.137 oz/t Au to<br />
produce 105,543 ounces of gold.<br />
The total production from twenty-eight (28) shrinkage stopes was 177,486 tons with a<br />
grade of 0.217 oz/ton (38,572 ounces). The total production from thirty-four (34) long-hole<br />
stopes was 371,285 tons with a grade of 0.118 oz/ton (43,938 ounces). Three stopes<br />
were mined using a combination of long-hole and shrinkage methods, producing 53,766<br />
tons with a grade of 0.177 oz/ton (9,534 ounces). Essentially, the excess dilution within<br />
long-hole stopes seemed to be a major factor in the reduced grades from these stopes<br />
(Nielsen, 1995). The average long-hole stope had a width in excess of 10.0 feet (3 m).<br />
The lower operating costs of the long-hole mining method were not sufficient to offset the<br />
dilution factor (Nielsen, 1995).<br />
In February 1995, Muscocho Explorations Ltd requested that R. Bruce Graham and<br />
Associates Ltd carry out a technical review of the Magino mine property. Conclusions<br />
released by the author, F. W. Nielsen, included: (1) the mining methods resulted in<br />
excessive dilution on the relatively narrow, high-grade zones and veins; (2) the zones<br />
which were thought to join up, both along strike and up and down dip, were in fact<br />
discontinuous; (3) there are no proven reserves left in the underground mine workings;<br />
and (4) there remain numerous narrow, high-grade drill intersections, indicating that a<br />
similar mineralized environment occurs throughout the Webb Lake granodiorite, especially<br />
at depth.<br />
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Project, Ste. Sault Marie Mining District, Ontario<br />
NI 43-101 <strong>Technic</strong>al Report<br />
6.2.1 Comments on drilling and core sampling<br />
Drill logs for the period do not always describe the core diameter. Where this information<br />
is recorded it is clear that surface drilling was generally BQ diameter and underground<br />
drilling was either BQ or AQ diameter (though several drillhole cores are recorded as EX).<br />
Surface and underground BQ core, when originally split, was with a mechanical splitter<br />
which would result in many broken fragments and poor sample representativity (Bloom,<br />
2009).<br />
Drill logs often indicate that underground core was either, sampled in its entirety, or split.<br />
It is likely that BQ core was either split or sampled entirely, and that AQ and EX core was<br />
sampled entirely.<br />
6.2.2 Comments on analytical laboratory<br />
There currently is no documentation to confirm the quality of sample processing and<br />
analytical determinations performed by the Magino mine assay laboratory during the<br />
period of mine operations (late 1980s to early 1990s).<br />
In 1997, it was considered that sample assaying procedure used at the mine was not<br />
standard industry practice and studies indicated that a rigorous check assay program was<br />
required (Perkins, 1997).<br />
Accordingly several studies have been undertaken in the <strong>Gold</strong>en Goose period to<br />
understand whether sample representativity and analytical bias is an issue for the deposit<br />
which is characterized by coarse gold mineralization. There is no comprehensive<br />
documentation to address this issue.<br />
6.3 1996 – 2010 <strong>Gold</strong>en Goose<br />
6.3.1 1996<br />
In 1996, <strong>Gold</strong>en Goose obtained the Magino mine property through an amalgamation of<br />
Muscocho Explorations Ltd, Flanagan McAdams Resources <strong>Inc</strong>. and McNellen Resources<br />
<strong>Inc</strong>. In that same year, BLM Bharti Engineering Ltd conducted a property review that<br />
evaluated the potential for both underground and open-pit mining (BLM Bharti Engineering<br />
Limited, 1996).<br />
6.3.2 1997<br />
In early 1997, a drill core re-sampling program was carried out to determine the reliability<br />
of previous drill assay results. A stripping program with structural mapping was completed<br />
on 17 July, 1997, to determine the orientation and continuity of gold bearing veins.<br />
Drilling<br />
In 1997, ten (10) diamond drillholes totalling 2,087.5 m were drilled from 1 April to 25 April<br />
by Chibougamau Diamond Drilling Ltd of Chibougamau, Québec (Nielsen, 1997). The<br />
holes were drilled to: (1) verify the potential of the mine area for hosting large-tonnage,<br />
low-grade gold mineralization amenable to open-pit mining; (2) determine the distribution<br />
of gold mineralization; (3) twin previous holes and determine the repeatability of assay<br />
results; and (4) establish a sampling protocol.<br />
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Project, Ste. Sault Marie Mining District, Ontario<br />
NI 43-101 <strong>Technic</strong>al Report<br />
All holes were drilled from north to south (N180° Az) on baseline-cut grid lines turned off a<br />
surveyed base line that was established in late 1996. The locations of the holes were<br />
determined using the Magino mine grid. All recovered core was NQ diameter. After each<br />
hole was completed, a Van Ruth plug was inserted in the bedrock below the bottom of the<br />
casing, and the top of the hole cemented. The casing was left in all holes. All drill core<br />
from this program is stored in tagged core boxes at the mine site. Several important<br />
objectives were set for the April 1997 program, with positive results. Firstly, the program<br />
confirmed the nature of the Magino mine mineralization and demonstrated that low-grade<br />
mineralization (0.5 g/t Au or higher), amenable to open-pit mining, occurs throughout the<br />
previously mined areas. Secondly, the new drillholes were used to determine sampling<br />
and assaying protocols for any future work.<br />
Sampling and analytical quality assurance and quality control<br />
In 1997, 5% of the original pulps and 5% of the coarse rejects were checked by Swastika<br />
Laboratories Ltd of Swastika, Ontario. <strong>Gold</strong>en Goose did not insert any standards or<br />
blanks. Another total of 87 pulps were sent to another laboratory (ALS Chemex) for an<br />
independent check (Nielsen, 1997).<br />
Mineral processing and metallurgical testwork<br />
Samples from diamond drillholes and rock samples from the stripped areas were sent to<br />
Lakefield Research Laboratories for gravity, column leach, bottle roll and Bond Work Index<br />
testing to develop metallurgical mill process flow sheets (Perkins, 1999a).<br />
BLM Bharti Engineering Ltd (BLME) conducted a metallurgical research program as part<br />
of their 1997 Preliminary Feasibility Study on the Magino gold property. The main results<br />
and conclusions provided below were extracted from the report (BLM Bharti Engineering<br />
Limited, 1997):<br />
Based on excellent standard leaching results, a carbon-in-leach (CIL) process was<br />
chosen for the Magino ore.<br />
Drill core and surface bulk samples were tested at Lakefield Research Laboratories.<br />
The drill core samples were higher grade material representing the main ore types to<br />
be processed. <strong>Gold</strong> recoveries for future operations were determined using a blended<br />
mill feed of drill core and surface sample ore.<br />
Bottle roll tests show that the material has an excellent dissolution rate of 97.8% in<br />
cyanide solution at a grind of 84% at minus 200 mesh. The cyanide and lime<br />
additions were found to be low relative to the majority of gold leaching applications.<br />
An overall dissolution of 96.4% can be expected, even when including a 25% blend of<br />
surface ore at 92% extraction. Consequently, an overall gold recovery of 95% should<br />
be attainable.<br />
Column leaching tests indicated that heap leaching is not economical. Recoveries<br />
were very low even after 35 to 42 days of leaching.<br />
Gravity separation did not lead to high grades in the concentrate, the highest test<br />
result being 1.64%. A higher grade is generally desired to minimize direct smelting<br />
costs.<br />
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Project, Ste. Sault Marie Mining District, Ontario<br />
NI 43-101 <strong>Technic</strong>al Report<br />
Geochemistry and geophysical surveys<br />
A baseline study was completed to evaluate the usefulness of geochemical sampling in<br />
future surface exploration. Quantec Consulting <strong>Inc</strong>. carried out an induced polarizationresistivity<br />
survey over the Webb Lake granodiorite on a local cut-and-picketed survey grid<br />
(non-UTM reference). The line separation was 400 feet and the station interval 100 feet.<br />
In all, 15.4 miles (24.8 km) were surveyed. The gradient and dipole-dipole IP-resistivity<br />
results for the Magino property identified potential chargeability and resistivity signatures<br />
relating to subsurface geology, including possible lithological discriminations, concordant<br />
and discordant fault-fracture structures, geochemical alteration, and weak concentrations<br />
of disseminated mineralization potentially associated with auriferous quartz- and<br />
carbonate-altered faults, fractures or shear zones.<br />
Sample and assay database<br />
A digital database that included imported archived diamond drillhole information was<br />
compiled for the property, and digital solids were created for the purposes of computer<br />
based modelling. The underground workings, including both long-hole and shrinkage<br />
stopes, were modelled using Gemcom software. A block model was created for resource<br />
evaluation purposes.<br />
Economic analysis<br />
A scoping study was performed to determine the economic viability of the project using the<br />
block model data and estimated costs for commissioning and operating an open-pit mine<br />
with a mill throughput of 7,500 tons per day (Pearson, Hofman and Associates Ltd., 1997).<br />
The scoping study indicated that at a gold price of US$350 per ounce and a cut-off grade<br />
of 0.025 oz/t Au, the property had combined proven and probable reserves of 20.5 million<br />
short tons at an overall average grade of 0.050 oz/t Au (18.6 Mt @ 1.7 g/t Au) 4 .<br />
Discounted cash flow indicators from that study showed a pre-tax internal rate of return of<br />
11.3% and a net present value of C$32M at a 5% discount rate. The decline in the gold<br />
price to the US$265-275 level in the late 1990s obviously nullified these economic<br />
analyses.<br />
6.3.3 1998-1999<br />
Mineral processing and metallurgical testwork<br />
In August 1998, two bulk samples representing two rock types; mafic volcanics and<br />
granodiorite, were amassed from the 1997 diamond drill core and sent to Kappes<br />
Cassiday and Associates for further metallurgical column leach testing. The average head<br />
grade was 0.88 g/t Au for the mafic volcanics and 0.96 g/t Au for the granodiorite (Kappes<br />
Cassiday and Associates, 1999). Column testing indicated an expected field recovery of<br />
45% Au for the mafic volcanics and 51% for the granodiorite ore when crushed to minus<br />
9.5 mm. <strong>Gold</strong> recovery increased from 80 to 84% with crushing to minus 1.70 mm.<br />
4 Resources and/or reserves reported are historical. These historical “resources” and/or “reserves” should<br />
not be relied upon because it is unlikely they conform to current Regulation 43-101 criteria or to CIM<br />
Definition Standards, and they have not been verified to determine their relevance or reliability. They are<br />
included in this section for illustrative purposes only and should not be disclosed out of context.<br />
. Final 2 November 2011 28 of 118
<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />
Project, Ste. Sault Marie Mining District, Ontario<br />
NI 43-101 <strong>Technic</strong>al Report<br />
6.3.4 2000<br />
Additional sampling<br />
In May of 2000, F. W. Nielsen of <strong>Gold</strong>en Goose asked Reddick Consulting <strong>Inc</strong>. to carry out<br />
a program that would assist their re-evaluation of the Magino mine property. There were<br />
two separate components to the work. The first was a review of the digital diamond<br />
drillhole database to determine where un-sampled and/or missing core occurred in the<br />
central part of deposit. This was followed by retrieving the archived core for those<br />
intervals and having them assayed to determine background gold levels for un-sampled<br />
lengths of core.<br />
Drilling<br />
The second component involved the drilling of nineteen (19) large diameter diamond<br />
drillholes (HQ diameter) in the central part of the deposit to: a) assist with grade<br />
determination in areas subject to underground mining; b) provide new baseline data to aid<br />
with grade reconciliation; and c) determine if there was variability in assay data as a<br />
function of sample size.<br />
Dominik Drilling of Timmins, Ontario, was awarded the drill contract in 2000. Drilling ran<br />
from 30 September to 18 October (Reddick, 2001a). A total of 1,231 m was drilled,<br />
producing 1,196 m of recovered core. The core was logged and sampled on the site. Drill<br />
collars were located by clearing out and re-chaining the parts of the grid lines that had<br />
been turned off the surveyed baseline established by <strong>Gold</strong>en Goose in 1996. All drill<br />
cores from this program core is stored in tagged core boxes at the mine site. The 2000<br />
drill program was designed to test the central part of the property to help reconcile grade<br />
estimates in the main mine area where stoping has removed some of the mineralization.<br />
There were two main considerations in designing the 2000 drill program. Firstly, in order<br />
to provide an even spatial distribution of samples, the holes were laid out in the most<br />
regular pattern possible. Secondly, only large diameter holes (HQ) were drilled and only<br />
one quarter of the core was archived to obtain the most representative samples possible.<br />
Sampling and analytical quality assurance – quality control (QA/QC)<br />
In 2000, <strong>Gold</strong>en Goose randomly inserted diabase samples in the shipped samples as<br />
blanks. In addition, Swastika Laboratories reported on their internal blanks, which they<br />
use for their own QA/QC purposes. To determine the variation introduced by<br />
sub-sampling, every 25th sample had a check assay done on the original pulp and a<br />
second pulp was split from the coarse reject fraction for a third assay. Swastika also<br />
performed many additional random checks. <strong>Gold</strong>en Goose did not insert any standards.<br />
None of the samples assayed by Swastika Laboratory were sent for independent<br />
verification at another laboratory (Reddick, 2001b).<br />
A total of 1,231 m was drilled. The results of the 2000 drilling program, as well as the<br />
re-sampling program, helped to establish a mean grade of 0.015 oz/t Au for un-sampled<br />
core from the central 1,000 feet (305 m) of the deposit. It also provided information on the<br />
existence of a significant percentage of granodiorite in the main part of the deposit at a<br />
grade considered sufficient for a low-grade, large-tonnage mining operation (0.06-0.10<br />
oz/t).<br />
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Project, Ste. Sault Marie Mining District, Ontario<br />
NI 43-101 <strong>Technic</strong>al Report<br />
6.3.5 2001<br />
In 2001, Reddick Consulting <strong>Inc</strong>. re-evaluated the variography and interpolation<br />
techniques to produce a revised resource estimate based on the inclusion of data<br />
obtained in 2000. Taking into account past production, the total measured resource 5 when<br />
applying a cut-off grade of 0.05 oz/t was estimated at approximately 5.8 Mt at a grade of<br />
0.09 oz/t Au. These resources were estimated for an open-pit operation.<br />
6.3.6 2002<br />
Drilling<br />
In 2002, <strong>Gold</strong>en Goose conducted a seventeen (17)-hole diamond drilling program<br />
(2,743 m) under the supervision of Reddick Consulting <strong>Inc</strong>. The holes were mostly drilled<br />
west of the mine area and did not identify significant mineralization.<br />
Dominik Drilling of Timmins, Ontario, was awarded the drill contract in 2002. Drilling ran<br />
from 12 May to 12 June, 2002 (Reddick, 2002). A total of 2,743 m was drilled with 2,508<br />
m of core recovered. Drill collars were located on the grid established by <strong>Gold</strong>en Goose in<br />
1996–1997. The core was logged and sampled on the site. All drill cores from this<br />
program are stored in tagged core boxes at the mine site. The 2002 drill program tested<br />
targets along the gold trend in the mine area; these targets were in the vicinity of<br />
anomalous results obtained during earlier drilling of the Lovell Lake and North Plug<br />
granodiorite intrusions, and the previously undrilled Southern granodiorite. The best<br />
mineralization from the 2002 drilling program was in diamond drillholes near the mine<br />
area.<br />
Sampling and analytical quality assurance – quality control<br />
In 2002, <strong>Gold</strong>en Goose inserted seventeen (17) diabase samples in the shipped samples<br />
as blanks. As in 2000, Swastika Laboratories reported their internal blanks. Check<br />
assays were performed on random pulps, as were checks of a second pulp split from the<br />
coarse reject fraction. None of the assayed samples were sent for independent<br />
verification at another laboratory (Reddick, 2002).<br />
6.3.7 2004<br />
Resource estimate<br />
An NI43-101 <strong>Technic</strong>al Report by Snowden Mining Industry Consultants and Reddick<br />
Consulting <strong>Inc</strong>. in 2004 reviewed the 2001 block model resource estimate to determine its<br />
suitability for use in scoping studies involving pit optimization (Burns and Reddick, 2004).<br />
Reddick Consulting <strong>Inc</strong>. concluded that for a potential open pit mine based on a cut-off<br />
grade of 0.04 oz/t, the 2004 combined Measured and Indicated Mineral Resource at the<br />
Magino mine was 7.295 Mt grading 0.075 oz/t Au after subtracting historical production.<br />
5 Resources and/or reserves reported are historical. These historical “resources” and/or “reserves” should<br />
not be relied upon because it is unlikely they conform to current Regulation 43-101 criteria or to CIM<br />
Definition Standards, and they have not been verified to determine their relevance or reliability. They are<br />
included in this section for illustrative purposes only and should not be disclosed out of context.<br />
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6.3.8 2006<br />
Drilling<br />
In 2006, eighteen (18) NQ diamond drillholes were completed for a total of 8,055 m. The<br />
holes identified a very robust system of gold mineralization with numerous intersections<br />
greater than 100 g/t Au, and clearly demonstrated the down-dip continuity of the<br />
mineralization, which remained open at depth and along strike. The deepest intersection<br />
of the diamond drill program was 440 m below surface (Hole 06-12), and mineralization<br />
was still open.<br />
The 2006 drill contract was awarded to Bradley Brothers Drilling of Rouyn-Noranda,<br />
Québec. Drilling ran from 9 February to 11 April, producing eleven (11) NQ diamond<br />
drillholes totalling 4,802 m. Another four (4) holes totalling 1,866 m were drilled from 9<br />
June to 1 July.<br />
Three (3) other holes totalling 1,387 m were drilled from 23 November to 12 December.<br />
The core was logged and sampled at the mine site. All drill core from this program is<br />
stored in tagged core boxes at the mine site. The 2006 drilling program was designed to<br />
target mineralization below historical workings from a depth of 130 to 400 m below surface<br />
and within the range of a future extended decline access.<br />
Sampling and analytical quality assurance – quality control<br />
In 2006, the <strong>Gold</strong>en Goose QA/QC program consisted of 189 un-mineralized mafic<br />
volcanic samples inserted as blanks to check for cross-contamination. In addition,<br />
177 core duplicates were assayed at ALS Chemex in Thunder Bay to monitor sample<br />
variability. <strong>Gold</strong>en Goose did not insert any standards. A selection of 115 master pulps<br />
were sent to a secondary laboratory (Swastika) for check assays (Waldie, 2006). For the<br />
assay range from 0 to 100 g/t Au, the correlation coefficient was 0.983.<br />
From 1997 to 2006, <strong>Gold</strong>en Goose did not detect any significant variation between<br />
subsamples.<br />
Analytical laboratory<br />
In 2006 core samples were sent to the ALS Chemex laboratory at Thunder Bay, Ontario.<br />
The sample preparation process was as follows:<br />
Sample login<br />
Received sample weighing<br />
Crush with 90% passing 2 mm<br />
Crushing – quality control test<br />
Split sample with riffle splitter<br />
Pulverise 1000 g to 85% passing 75 micron<br />
Pulverising – quality control test<br />
<strong>Gold</strong> analysis conformed to Code Au-AA24 with a 50 g charge for fire assay followed by<br />
AA finish. “Ore” grade results were re-assayed according to Code Au-AA26.<br />
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6.3.9 2007<br />
Drilling<br />
<strong>Gold</strong>en Goose drilled fourteen (14) NQ diamond drillholes on the Magino property for a<br />
total of 9,239 m. The drilling program was originally designed to outline and extend<br />
multiple known gold zones from 150 to 400 m below surface, below the historical Magino<br />
mine workings.<br />
Bradley Brothers Drilling of Rouyn-Noranda, Québec was awarded the drill contract in<br />
2007. Drilling ran from 6 January to 17 December. Fourteen (14) NQ diamond drillholes<br />
were completed totalling 9,836 m. The core was logged and sampled at the mine site. All<br />
drill core from this program is stored in tagged core boxes at the mine site. The fourteen<br />
(14) diamond drillholes identified a gold system with numerous intersections and clearly<br />
demonstrated the continuity of the mineralization, which remains open at depth and along<br />
strike.<br />
Sampling and Analytical Quality Assurance – Quality Control<br />
In 2007, samples were assayed at Accurassay Laboratories in Thunder Bay, Ontario.<br />
<strong>Gold</strong>en Goose did not establish a QA/QC protocol for samples from the 2007 drilling<br />
program, nor did the company double-check the results using a second laboratory.<br />
Independent consultants InnovExplo asked <strong>Gold</strong>en Goose to send assayed samples for<br />
independent verification at ALS Chemex in Thunder Bay, Ontario. In all, 363 pulps from<br />
the 2007 program were sent, and InnovExplo’s analysis of the results from this second<br />
laboratory revealed no bias in the original data obtained from Accurassay.<br />
6.3.10 2008<br />
Resource estimate<br />
In 2008, InnovExplo completed a Mineral Resource Estimate for the Magino gold mine<br />
below the old mine workings (i.e., below the 650 level) that was published as a <strong>Technic</strong>al<br />
Report in compliance with NI 43-101 and Form 43-101F1 (Turcotte and Pelletier, 2008).<br />
Specifically, InnovExplo’s mandate was to prepare a Resource Estimate from a depth of<br />
200 to 600 m. The resulting resources could only be classified as Inferred as per CIM<br />
standards and guidelines for reporting mineral resources and reserves. The total<br />
estimated Inferred Resources were 3,755,600 tonnes grading 5.94 g/t Au for a total of<br />
717,227 ounces of gold (cut-off at 3 g/t Au). The highlight of this Resource Estimate was<br />
the addition of a large portion of Inferred Resources below the old workings of the Magino<br />
mine (i.e., below the 650 level). This upgrade was possible due to the results from the<br />
2006-2007 diamond drilling program, the most recent drill program at that time. This<br />
additional information increased the number of mineralized zones.<br />
Exploration potential<br />
InnovExplo also performed an exhaustive compilation of the entire Magino property to<br />
identify new regional exploration targets for diamond drilling and stripping. It was<br />
concluded that there is potential for gold mineralization in granodiorite, gabbro/diorite and<br />
volcanic rocks throughout the Magino property. InnovExplo constructed a geological<br />
compilation map showing all historical exploration work on the Magino property. The<br />
compilation work encompassed all previous geological mapping, trenching, diamond<br />
drilling, surface sampling, geophysical surveying, geochemical surveying, etc., and all<br />
historical mineral occurrences<br />
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Surface sampling<br />
In July 2008, <strong>Gold</strong>en Goose carried out stripping and channel sampling in the vicinity of<br />
the southern contact of the Webb Lake granodiorite stock and adjacent volcanic rocks<br />
(<strong>Gold</strong>en Goose news release dated 28 October, 2008). The stripped area lays over the<br />
old mine workings and consists of seven (7) small strippings totalling 2,790 square m.<br />
The purpose of the work was to enhance the understanding of structural controls on gold<br />
deposition. A total of seventy-eight (78) channel samples were collected from the stripped<br />
areas. The best results for the stripping and channel sampling program were: 19.85 g/t Au<br />
over 0.5 metre, and 17.59 g/t Au over 1.0 metre.<br />
6.3.11 2009<br />
Geochemistry and geophysical surveys<br />
In 2009, Gestion Aline Leclerc <strong>Inc</strong>. of Val-d’Or, Québec, performed a geochemical field<br />
survey from 18 to 21 September, 2009. A total of 661 humus samples were collected and<br />
assayed for gold and 48 other elements. Two grids were established with lines spaced<br />
100 m apart. Grid locations were established with a hand-held GPS. One (1) sample was<br />
collected every 25 m. That same Autumn, D/C Géophysique of Val d’Or, Québec, carried<br />
out a ground magnetic survey from 26 September to 10 October, 2009. A total of 75 km<br />
was surveyed on a grid of 42 lines spaced 50 m apart.<br />
Resource estimate<br />
InnovExplo reported that the Magino mine has Measured and Indicated Resources of<br />
2,091,900 metric tonnes grading 6.74 g/t Au for a total of 453,189 ounces. Total Inferred<br />
Resources were reported as 5,828,800 metric tonnes grading 6.29 g/t Au for a total of<br />
1,178,124 ounces at a cut-off grade of 3.0 g/t Au, as published in a <strong>Technic</strong>al Report in<br />
compliance with NI 43-101 and Form 43-101F1 (Turcotte and Pelletier, 2009).<br />
6.3.12 2010<br />
Drilling<br />
From 15 November, 2009 to 1 March, 2010, <strong>Gold</strong>en Goose conducted a fourteen (14)-<br />
hole diamond drilling program totalling 4,012 m. Most of the holes were drilled in volcanic<br />
rocks south of the mine area and succeeded in identifying some significant gold<br />
mineralization.<br />
Bradley Brothers Drilling of Rouyn-Noranda, Québec was awarded the drill contract in<br />
2009-2010. Drilling ran from 15 November, 2009 to 30 March, 2010. Fourteen (14) NQ<br />
diamond drillholes were completed totalling 4,012 m. The core was logged and sampled<br />
at the mine site.<br />
All drill core from this program is stored in tagged core boxes at the mine site. The overall<br />
objective of the 2009-2010 drilling program was to discover new mineralized zones in<br />
volcanic rocks on the Magino property, south of the mine area. The fourteen (14) diamond<br />
drillholes identified some gold intersections and clearly demonstrated the possibility of<br />
increasing the gold resources in the volcanic rocks south of the mine area, which remain<br />
open at depth and along strike.<br />
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Sampling and Analytical Quality Assurance – Quality Control<br />
A QA/QC control program was active during the <strong>Gold</strong>en Goose 2009-2010 diamond<br />
drilling program on the Magino property. The objectives of the QA/QC program were to<br />
monitor and document the quality and integrity of the sampling procedure, sample<br />
preparation, and assaying. Using a series of quality control samples, <strong>Gold</strong>en Goose’s<br />
protocol stipulates that the entire sampling, sample preparation and assaying process be<br />
monitored and evaluated for:<br />
The integrity of field sampling and sample shipment by monitoring field blank results<br />
and sample shipment procedures;<br />
Possible contamination during sample preparation or the assaying process by<br />
monitoring the results of field blank standards submitted as regular samples, and by<br />
monitoring laboratory analytical blank standard results;<br />
The suitability of crushing/splitting/pulverization sizes by measuring the precision of<br />
coarse and pulp duplicate samples; and<br />
The level of assaying accuracy by using external and internal (laboratory) certified<br />
reference standards and by assaying blind certified reference standards in each batch<br />
of samples.<br />
The laboratory inserted one (1) coarse crush duplicate sample split, selected at random,<br />
into each 10-sample sub-batch. Three (3) certified reference standards (CRMs) with<br />
different grades, all from Rocklabs in New Zealand, were used for QA/QC. One (1) field<br />
blank standard was prepared using “barren” rock from the project site, or other potentially<br />
“barren” material. One (1) of the three CRMs, or one (1) blank, was included in each<br />
batch of fifty (50) samples shipped by the <strong>Gold</strong>en Goose geologist.<br />
6.3.13 Summary<br />
The exploration and mining history of Magino is summarized in Table 6.1.<br />
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Table 6.1 Historical summary<br />
Year Company Work description Results References<br />
1917 to 1924<br />
1925 to 1932<br />
1933 to 1934<br />
McCarthy-Webb Goudreau<br />
Mines Ltd<br />
McCarthy-Webb Goudreau<br />
Mines Ltd<br />
Consolidated Mining and<br />
Smelting Company<br />
1935 to 1937 Algoma Summit <strong>Gold</strong> Mines<br />
1938 to 1939 Algoma Summit <strong>Gold</strong> Mines<br />
Development of claim group<br />
Sinking of two shallow shafts or pits<br />
335 m of surface diamond drilling<br />
Test pits and trenching<br />
5 surface diamond drillholes (DDH)<br />
Diamond drilling<br />
Construction of mill<br />
<strong>Inc</strong>lined shaft sunk at 33 degrees<br />
Sublevel at 100 ft (30.5 m); 1st level at 176 ft (53.6 m);<br />
2nd level at 374 ft (114 m)<br />
Underground diamond drilling<br />
<strong>Inc</strong>lined shaft sunk to 2nd level at 374 ft (114 m)<br />
Underground diamond drilling<br />
Drifting<br />
1939 to 1942 Magino <strong>Gold</strong> Mines Detailed underground exploration program<br />
Mine closed<br />
Discovery of gold Bourne et al., 1983<br />
421 tons of ore milled<br />
144 oz of gold extracted<br />
47,785 tons of ore milled<br />
2,274 oz of gold extracted<br />
68,421 tons of ore milled<br />
6,049 oz of gold extracted<br />
Discovery of a new gold zone<br />
309 oz of gold from clean-up of mill<br />
Bourne et al., 1983<br />
Bourne et al., 1983<br />
Bourne et al., 1983<br />
Bourne et al., 1983<br />
Bourne et al., 1983<br />
1972 Mr. C. McNellen Surface diamond drilling: 6 DDH (AS-72-01 to AS-72-<br />
06) totalling 2,000 ft (610 m)<br />
Many new “ore-grade” intersections Bourne et al., 1983<br />
1981 Rico Copper (1966) Ltd Surface diamond drilling: 16 DDH (S-81-1 to S-81-16)<br />
totalling 6,915 ft (2,107 m)<br />
1981 to 1982<br />
1982<br />
McNellen Resources <strong>Inc</strong>.<br />
Cavendish Investing Ltd<br />
McNellen Resources <strong>Inc</strong>.<br />
Cavendish Resources Ltd<br />
Surfaces facilities installed<br />
Underground workings dewatered and resurveyed<br />
Channel sampling<br />
Test hole drilling<br />
75 test holes totalling 1,500 ft (457 m)<br />
Surface diamond drilling: 38 DDH (SS-1 to SS-37A)<br />
totalling 6,798 ft (2,072 m)<br />
Underground drilling: 42 DDH (U1-1 to U1-11;<br />
U2-1 to U2-31) totalling 8,581 ft (2,615 m)<br />
Magnetic and electromagnetic surveys<br />
Geological survey<br />
Many new “ore-grade” intersections Bourne et al., 1983<br />
Many new “ore-grade” intersections Bourne et al., 1983<br />
No electromagnetic conductors<br />
Magnetic anomalies<br />
Mongeau, 1982<br />
Parbery and<br />
Mongeau, 1982<br />
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Year Company Work description Results References<br />
1983<br />
McNellen Resources <strong>Inc</strong>.<br />
Cavendish Resources Ltd<br />
Pre-feasibility study<br />
Mineral inventory estimation<br />
Project not viable Bourne et al., 1983<br />
1984<br />
McNellen Resources <strong>Inc</strong>.<br />
Cavendish Resources Ltd<br />
Prophet Resources Ltd June<br />
Resources <strong>Inc</strong>.<br />
Pre-feasibility study<br />
Mineral inventory estimation<br />
Surface diamond drilling: 25 DDH (JJ-1 to JJ-24)<br />
totalling 5,122 ft (1,561 m)<br />
New gold-bearing zones found<br />
Bourne, 1984<br />
Sutherland, 1987<br />
1985<br />
McNellen Resources <strong>Inc</strong>.<br />
Muscocho Explorations Ltd<br />
1986 McNellen Resources <strong>Inc</strong>.<br />
Muscocho Explorations Ltd<br />
1987 McNellen Resources <strong>Inc</strong>.<br />
Muscocho Explorations Ltd<br />
1988<br />
McNellen Resources <strong>Inc</strong>.<br />
Muscocho Explorations Ltd<br />
Surface diamond drilling<br />
29 DDH (MAG-85-01 to MAG-85-29) totalling 16,441 ft<br />
(5,011 m)<br />
Surface diamond drilling: 64 DDH (S-86-01to S-86-55;<br />
S-86-57 to S-86-65) totalling 12,372 ft (3,771 m)<br />
Underground diamond drilling: 12 DDH (U-86-01 to U-<br />
86-12) totalling 5,508 ft (1,679 m)<br />
Ramp collared<br />
Underground development<br />
Surface diamond drilling: 92 DDH (S-87-001 to S-87-<br />
079; S-87-201 to S-87-211) totalling 54,359 ft (16,369<br />
m)<br />
Underground diamond drilling: 187 DDH (U- 87-001 to<br />
U-87-118; U-87-120 to U-87-186) totalling 51,330 ft<br />
(15,645 m)<br />
Underground development<br />
Surface diamond drilling<br />
9 DDH (S-88-001 to S-88-009) totalling 54,359 ft<br />
(16,369 m)<br />
Underground diamond drilling: 213 DDH (U-88-001 to<br />
U-88-064; U-88-072 to U-88-151; U-88-155 to U-88-<br />
166; U-88-171 to U-88-207; U-88-219 to U-88-232; U-<br />
88-240 to U-88-245) totalling 57,434 ft (17,506 m)<br />
Underground development and mining work<br />
Four (4) mineralized zones outlined Sutherland, 1987<br />
Best drift results: 0.298 oz/t over 8.0 ft<br />
horizontal width along strike length of<br />
120 ft (35.50 m)<br />
DDH S-86-014 intersected 0.624 oz/t<br />
over 13.0 ft (21.38 g/t Au over 3.96 m)<br />
DDH S-87-045 intersected 0.708 oz/t<br />
over 14.2 ft (24.29 g/t Au over 4.33 m)<br />
DDH S-88-001 intersected 0.371 oz/t<br />
over 31.0 ft (12.73 g/t Au over 9.45 m)<br />
Muscocho<br />
Explorations Ltd,<br />
1987<br />
Sutherland, 1987<br />
DDH Logs<br />
DDH logs<br />
DDH logs<br />
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Year Company Work description Results References<br />
1989<br />
1990<br />
1991<br />
1992<br />
1988 to 1992<br />
McNellen Resources <strong>Inc</strong>.<br />
Muscocho Explorations Ltd<br />
McNellen Resources <strong>Inc</strong>.<br />
Muscocho Explorations Ltd<br />
McNellen Resources <strong>Inc</strong>.<br />
Muscocho Explorations Ltd<br />
McNellen Resources <strong>Inc</strong>.<br />
Muscocho Explorations Ltd<br />
McNellen Resources <strong>Inc</strong>.<br />
Muscocho Explorations Ltd<br />
Underground diamond drilling: 293 DDH (U-89-001 to<br />
U-89-090; U-89-092 to U-89-116; U-89-118 to U-89-<br />
142; U-89-147 to U-89-64; U-89-168 to U-89-169; U-<br />
89-171; U-89-173 to U-89-176; U-89-179 to U-89-188;<br />
U-89-190 to U-89-192; U-89-194 to U-89-196; U-89-<br />
198 to U-89-200; U-89-204 to U-89-237; U-89-238 to<br />
U-89-248; U-89-251 to U-89-315) totalling 53,493 ft<br />
(16,305 m)<br />
Underground development and mining work<br />
Underground diamond drilling: 166 DDH (U-90-001 to<br />
U-90-015; U-90-017 to U-90-019; U-90-021 to U-90-<br />
023; U-90-025 to U-90-092; U-90-101 to U-90-127; U-<br />
90-129 to U-90-178) totalling 15,178 ft (4,626 m)<br />
Underground development and mining work<br />
Underground diamond drilling: 13 DDH (U-91-001 to<br />
U-91-013) totalling 1,081 ft (329 m)<br />
Underground development and mining work<br />
No underground and surface diamond drilling<br />
Underground development and mining work<br />
The 650 ramp was driven to a depth of 685 ft<br />
Mining production<br />
DDH U-89-043 intersected 0.257 oz/t<br />
over 6.0 ft (8.81 g/t Au over 1.83 m)<br />
DDH U-89-061 intersected 0.244 oz/t<br />
over 9.4 ft (8.37 g/t Au over 2.87 m)<br />
DDH U-89-159 intersected 2.283 oz/t<br />
over 3.4 ft (78.27 g/t Au over 1.02 m)<br />
DDH U-89-163 intersected 0.30 oz/t<br />
over 24.8 ft (10.29 g/t Au over 7.56 m)<br />
DDH U-90-080 intersected 0.21 oz/t<br />
over 10.3 ft (7.21 g/t Au over 3.14 m)<br />
DDH U-91-008 intersected 0.243 oz/t<br />
over 9.70 ft (8.32 g/t Au over 2.96 m)<br />
768,678t processed production of<br />
105,543 oz of gold<br />
28 shrinkage stopes totalling 177,486 t<br />
with a grade of 0.217 oz/t (38,572 oz)<br />
34 long-hole stopes totalling 371,285 t<br />
with a grade of 0.118 oz/t (43,938 oz)<br />
3 combined long-hole and shrinkage<br />
stopes totalling 53,766 t with a grade<br />
of 0.177 oz/t (9,534 oz)<br />
DDH logs<br />
DDH logs<br />
DDH logs<br />
Muschocho<br />
Explorations, 1992<br />
McBride, 1991<br />
Nielsen, 1995<br />
Perkins, 1999<br />
1995<br />
McNellen Resources <strong>Inc</strong>.<br />
Muscocho Explorations Ltd<br />
1996 <strong>Gold</strong>en Goose Resources <strong>Inc</strong>.<br />
<strong>Technic</strong>al review of the Magino mine property Nielsen, 1995<br />
Acquisition of Magino mine<br />
Evaluation of potential for both underground and openpit<br />
mining<br />
BLME 1996<br />
Reddick 1996a<br />
Reddick 1996b<br />
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Year Company Work description Results References<br />
1997 <strong>Gold</strong>en Goose Resources <strong>Inc</strong>.<br />
1998 <strong>Gold</strong>en Goose Resources <strong>Inc</strong>. Two bulk samples<br />
2000 to 2001 <strong>Gold</strong>en Goose Resources <strong>Inc</strong>.<br />
Check sampling program<br />
Geochemical study for surface exploration<br />
IP survey of Webb Lake granodiorite<br />
Surface diamond drilling<br />
10 DDH (S-97-01 to S-97-10) totalling 2,087 m<br />
Stripping, mapping and channel sampling<br />
Structural study<br />
Creation of a digital database in Gemcom software<br />
Creation of a block model for resource evaluation<br />
Scoping study<br />
Surface diamond drilling<br />
19 DDH (00-01 to 00-18) totalling 1,231 m<br />
Revised resource estimate<br />
2002<br />
Surface diamond drilling<br />
<strong>Gold</strong>en Goose Resources <strong>Inc</strong>.<br />
17 DDH (00-02 to 02-17) totalling 2,743 m<br />
2004 <strong>Gold</strong>en Goose Resources <strong>Inc</strong>. Review of mineral resources<br />
DDH S-97-05 intersected 18.57 g/t Au<br />
over 7.00 m<br />
Measured Resources: 5.8 Mt grading<br />
0.09 oz/t Au<br />
DDH 00-02 intersected 9.54 g/t Au<br />
over 3.65 m<br />
DDH 02-02 intersected 12.89 g/t Au<br />
over 0.67 m<br />
Measured and Indicated Resources:<br />
7.295 Mt grading 0.075 oz/t Au<br />
Nielsen, 1997<br />
Perkins, 1997<br />
PHA, 1997<br />
Hall et al., 1997<br />
Wilson, 1997<br />
BLME, 1997<br />
Analytical Solutions<br />
Ltd, 1997<br />
Reddick, 1999<br />
Perkins, 1999<br />
Reddick, 2000<br />
Reddick, 1999<br />
Perkins, 1999<br />
Reddick, 2001a<br />
Reddick, 2001b<br />
Reddick, 2002<br />
Burns and Reddick,<br />
2004<br />
2006 <strong>Gold</strong>en Goose Resources <strong>Inc</strong>.<br />
2007 <strong>Gold</strong>en Goose Resources <strong>Inc</strong>.<br />
2008 <strong>Gold</strong>en Goose Resources <strong>Inc</strong>.<br />
2009 to 2010 <strong>Gold</strong>en Goose Resources <strong>Inc</strong>.<br />
Surface diamond drilling<br />
18 DDH (06-01 to 06-15; 2006-16 to 2006-17) totalling<br />
8,055 m<br />
Surface diamond drilling<br />
14 DDH (2007-17 to 2007-30) totalling 9,239 m<br />
<strong>Technic</strong>al Report and Mineral Resource Estimate<br />
Stripping and channel sampling<br />
Compilation of the entire Magino property<br />
Geochemical field survey (humus)<br />
Ground magnetic survey (75 km)<br />
14 DDH (2009-01 to 2009-08; 2010-01 to 2010-06)<br />
totalling 4,012 m<br />
DDH 06-14 intersected 7.29 g/t Au<br />
over 5.4 m<br />
DDH 2007-30 intersected 7.94 g/t Au<br />
over 2.9 m<br />
Inferred Resources: 3,775 Mt grading<br />
5.94 g/t (717,227 oz) below the old<br />
workings<br />
Best channel sampling results: 19.85<br />
g/t over 0.5 m and 17.59 g/t over 1.0 m<br />
Some gold anomalies (humus)<br />
Some magnetic anomalies<br />
Some significant gold mineralization<br />
Waldie, 2006<br />
DDH logs<br />
Turcotte and<br />
Pelletier, 2008<br />
Press release from<br />
<strong>Gold</strong>en Goose<br />
Resources: October<br />
28, 2008<br />
Leclerc and Fleury,<br />
2009 News release<br />
from <strong>Gold</strong>en Goose<br />
Resources: March<br />
30, 2010<br />
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7 Geological setting and mineralization<br />
Information in this section has been excerpted from Turcotte, B., and Pelletier, C., (May<br />
2009) and updated.<br />
7.1 The Archean Superior Province<br />
The Archean Superior Craton forms the core of the North American continent and is<br />
surrounded and truncated on all sides by Proterozoic orogens, the collisional zones along<br />
which elements of the Precambrian Canadian Shield were amalgamated (Hoffman, 1988<br />
and 1989). The Superior Province represents two million square km of this craton that is<br />
free of significant post-Archean cover rocks and deformation (Card and Poulsen, 1998).<br />
Tectonic stability has prevailed since ca. 2.6 Ga in large parts of the Superior Province<br />
(Percival, 2007). The rocks of this Province are mainly Mesoarchean and Neoarchean in<br />
age and have been significantly affected by post-Archean deformation only along the<br />
boundaries marked by Proterozoic orogens, such as the Trans-Hudson and Grenville<br />
orogens, or along major internal fault zones, such as the Kapuskasing Structural Zone.<br />
The rest of the Superior Province has remained stable since the end of the Archean<br />
(Goodwin et al., 1972).<br />
Proterozoic and younger activity is limited to rifting along the margins, emplacement of<br />
numerous mafic dyke swarms (Buchan and Ernst, 2004), compressional reactivation, and<br />
large scale rotation at ca. 1.9 Ga, and failed rifting at ca 1.1 Ga. With the exception of the<br />
northwest and northeast Superior margins that were pervasively deformed and<br />
metamorphosed at 1.9 to 1.8 Ga, the craton has escaped ductile deformation. A<br />
first-order feature of the Superior Province is its linear sub-provinces of distinctive<br />
lithological and structural character, accentuated by sub-parallel boundary faults (e.g.<br />
Card and Ciesielski, 1986). Trends in the Superior Province are generally easterly in the<br />
south, westerly to north-westerly in the northwest, and north-westerly in the northeast<br />
(Figure 7.1). The southern Superior Province (to latitude 52°N) is a major source of<br />
mineral wealth. Owing to its potential for base metals, gold and other commodities, the<br />
Superior Province continues to attract mineral exploration in both established and frontier<br />
regions.<br />
7.2 The Wawa Sub-province<br />
The Magino property is located in the Wawa Sub-province (Figure 7.2). Most workers<br />
accept a correlation between the Wawa and Abitibi terranes across the transverse<br />
Kapuskasing uplift (Percival, 2007). Volcanism appears to have begun with the 2.89 to<br />
2.88 Ga Hawk assemblages. The 2.745 Ga Wawa assemblage and the 2.72 Ga<br />
Greenwater and Manitouwadge assemblages reflect oceanic settings. Volcanogenic<br />
massive sulphide deposits in the Wawa terrane have similar ages of 2.72 Ga (Corfu and<br />
Stott, 1986; Williams et al., 1991; Sage et al, 1996a and b). Polat and Kerrich (1999)<br />
reported a variety of oceanic magma types from the Schreiber belt and interpreted the belt<br />
as a tectonic mélange (Polat et al., 1998; Polat and Kerrich, 1999 and 2001). Relatively<br />
late-stage volcanism at ca. 2.695 Ga (Carfish assemblage) took place during D1 thrusting.<br />
Subsequent calc-alkalic to alkali magmatism (ca. 2.689 Ga; Corfu and Stott, 1996) and<br />
associated coarse clastic sedimentation (< 2.689 Ga) was followed by the emplacement of<br />
sanukitoid plutons (2.685-2.68 Ga) and dextral transpressive D2 deformation.<br />
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Figure 7.1<br />
Tectonic subdivisions of the Superior Province within northern Ontario<br />
(from Stott et al., 2007)<br />
Figure 7.2<br />
Major geological elements of the eastern Wawa Sub-province<br />
(from Card and Poulsen, 1998)<br />
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Mineralization occurs in two main regions: the Michipicoten-Mishubishu belt in the Wawa<br />
area, and the Shebandowan-Schreiber belt to the west (Percival, 2007). The<br />
Michipicoten-Mishubishu belt contains mainly iron and gold deposits with some nickel and<br />
copper-vein deposits (Figure 7.3). Iron deposits are in oxide-, sulphide- and<br />
carbonate-facies iron formations that lie stratigraphically above the 2.74 to 2.735 Ga<br />
Wawa assemblage. <strong>Gold</strong> deposits in this region occur within veins associated with shear<br />
zones in plutonic rocks of variable composition and age.<br />
The Shebandowan-Schreiber belt hosts important deposits of gold, iron and base metals<br />
(volcanic-hosted massive sulphide deposits; e.g., Manitouwadge) (Peterson and Zaleski,<br />
1999; Zaleski et al., 1999), as well as intrusion-hosted nickel deposits. The most<br />
significant is the Hemlo gold camp, a large disseminated deposit (Muir, 2003) in a strongly<br />
deformed, ca 2.693 to 2.685 Ga volcano-sedimentary sequence (Davis and Lin, 2003).<br />
<strong>Gold</strong> was deposited during D2 sinistral wrench deformation between 2.680 and 2.677 Ga,<br />
likely from fluids derived from granitoid rocks.<br />
Figure 7.3<br />
Mineral belts in the Michipicoten-Shebandowan region of the Wawa<br />
Sub-province<br />
(from Card and Poulsen, 1998)<br />
7.3 The Michipicoten greenstone belt<br />
The Magino mine is located within the Michipicoten greenstone belt (Figure 7.2 and<br />
Figure 7.3). This belt, including the adjacent Gamitagama and Mishubishu greenstone<br />
belts, is one of the key localities with respect to the Superior Province (Wawa<br />
Sub-province) geology, partly because of the importance of its Algoma-type iron<br />
formations, partly because many important concepts of greenstone belt geology are based<br />
there, and partly because it contains a record of volcanism, sedimentation and plutonism<br />
that spans at least 240 Ma of Archean time (Card and Poulsen, 1998).<br />
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The Michipicoten greenstone belt is a structurally and stratigraphically complex<br />
assemblage of volcanic, sedimentary and intrusive rocks that were metamorphosed to<br />
greenschist and amphibolite facies (Attoh, 1981; Williams et al., 1991). To the east and<br />
south, the Michipicoten greenstone belt and satellite Gamitagama greenstone belt are<br />
bounded by plutonic rocks of the Wawa gneiss domain, mainly tonalite gneiss with<br />
abundant granitic intrusions (Card and Poulsen, 1998). The north-eastern Wawa<br />
Sub-province consists of similar gneissic and plutonic rocks along with the small<br />
Saganash Lake and Kabinakagami Lake greenstone belts. At the eastern edge of the<br />
Michipicoten greenstone belt, a Mesoarchean sequence (Cycle 1) of basalt and komatiite,<br />
overlain by calc-alkaline tuff, is intruded by the 2888 Ma Hawk granite and 2881 Ma felsic<br />
sills (Sage, 1994; Card and Poulsen, 1998). This sequence is in contact with 2747 Ma<br />
tonalite gneiss cut by 2698 Ma intrusions of the Whitefish Lake batholith. The<br />
Mesoarchean rocks may represent a basement to the younger volcanic succession<br />
(Jackson and Sutcliffe, 1990). The Mesoarchean and Neoarchean supracrustal rocks<br />
form at least three (3) mafic-felsic cycles with intercalated sediments, notably the thick<br />
Helen iron formation that caps the lower cycle and consists of a lower siderite member, a<br />
middle pyritic carbonate member, and upper chert-carbonate and black shale members<br />
(Goodwin, 1962; Sage, 1987; Sage, 1994). Cycle 2 is a 2749 to 2746 Ma and 2729 Ma<br />
sequence consisting of tholeiitic basalt and andesite overlain by calc-alkaline dacite and<br />
rhyolite (Sage, 1994; Card and Poulsen, 1998). The upper volcanic cycle (Cycle 3), which<br />
is separated from the lower cycles by the Doré conglomerate containing tonalite clasts as<br />
young as 2698 Ma, consists of tholeiitic basalt with minor komatiite, capped by 2701 to<br />
2691 Ma calc-alkaline felsic volcanic and clastic sedimentary rocks that include wacke,<br />
arkose, polymictic conglomerate and oligomictic quartz conglomerate (Sage, 1994; Card<br />
and Poulsen, 1998). Detrital zircons from the sedimentary rocks are as young as 2680 Ma<br />
(Corfu and Sage, 1992), demonstrating that these sediments, like similar sequences in the<br />
Abitibi greenstone belt, were deposited following major volcanism. The petrography of the<br />
wacke units indicates that they were derived from bimodal mafic-felsic volcanic sequences<br />
(Ayres, 1983).<br />
Several suites of plutonic rocks ranging in composition from gabbro to monzogranite and<br />
syenite occur in and around the Michipicoten greenstone belt. Early tonalite, trondhjemite<br />
and granodiorite plutons with ages of 2747 to 2737 Ma, 2729 to 2721 Ma and 2698 to<br />
2693 Ma, respectively—similar to the ages of the main volcanic cycles—are probably<br />
syn-volcanic and have characteristics consistent with derivation from melting of basaltic<br />
sources (Card and Poulsen, 1998).<br />
The rocks of the Michipicoten and Gamitagama greenstone belts have been repeatedly<br />
deformed and metamorphosed under low-pressure, greenschist to lower amphibolite<br />
facies conditions (Ayres, 1969, 1983; Studemeister, 1983; McGill and Shrady, 1986; Arias<br />
and Helmstaedt, 1990; McGill, 1992; Sage, 1993 and 1994). Early structures include<br />
major recumbent folds, thrusts and associated cleavages (Card and Poulsen, 1998).<br />
Later superimposed upright folds are accompanied by steep cleavages. The latest<br />
structures include northeast-trending shear zones that host auriferous vein systems<br />
(Heather, 1989) and northerly-trending sinistral faults.<br />
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The Michipicoten-Mishubishu mineral belt is dominated by iron and gold deposits<br />
(Figure 7.3); lesser prospects include nickel sulphide and copper-vein deposits. Iron<br />
formation deposits are widely distributed in this region. <strong>Gold</strong> deposits also typify the<br />
Michipicoten-Mishubishu mineral belt. Most of these occur in a linear zone extending<br />
west-southwest from Renabie in the east, through the Goudreau-Lochalsh area, to<br />
Mishubishu Lake. Although the gold deposits of this area occur in a terrane with extensive<br />
iron formations, they display a remarkable association with altered shear zones and<br />
plutonic rocks regardless of composition or age (Studemeister, 1985; Studemeister and<br />
Kilias, 1987; Arias and Heather, 1987; Heather and Arias, 1987 and 1992).<br />
7.4 The geology of the Magino mine area<br />
The Magino mine is situated in the Goudreau-Lochalsh gold district of the Wawa gold<br />
camp. The geology of the Goudreau-Lochalsh gold district has been mapped by Sage<br />
and published over a ten-year period (Sage 1983, 1984, 1985, 1987a, 1993, 1993a,<br />
1993b, 1993c and 1993d). Supracrustal rocks in the Goudreau-Lochalsh district consist of<br />
Cycle 2 felsic to intermediate pyroclastic metavolcanics capped by pyrite-bearing<br />
ironstone. To the north are pillowed, massive and schistose, mafic to intermediate<br />
metavolcanics and minor intercalations of Cycle 3 mafic pyroclastic rock. Several<br />
medium- to coarse-grained quartz dioritic to dioritic sills and/or dikes intrude all<br />
metavolcanic rocks.<br />
<strong>Gold</strong> mineralization at the Magino mine is dominantly hosted by the Webb Lake stock<br />
(Deevy, 1994), which intrudes isoclinally folded Cycle 3 mafic volcanic rocks (Sage, 1993).<br />
The Webb Lake stock is a felsic intrusion interpreted by Sage (1993, 1994) as a<br />
trondhjemite, but continues to be called a granodiorite in mine terminology and by mine<br />
geologists.<br />
The long axis of the Webb Lake stock is parallel to the regional supracrustal rock<br />
stratigraphy (Sage, 1993; 1994). The Webb Lake stock is ENE-striking and has a steep<br />
northerly dip (Deevy, 1992 and 1994). Its surface expression is at least 1,800 m long and<br />
up to 300 m wide. The aureole rocks of the Webb Lake stock are predominately mafic<br />
volcanic rocks (Deevy, 1992 and 1994). The southern contact is quite linear and regular,<br />
consisting mostly of dark green mafic rocks. The northern contact is quite irregular and<br />
there is interfingering of granodiorite (trondhjemite) and aureole rocks. The granodiorite<br />
(trondhjemite) is medium- to coarse-grained, green-grey, moderately hard, non-magnetic<br />
and massive (Sutherland, 1987). It is locally foliated and hydrothermally altered, and has<br />
been affected by greenschist facies metamorphism. The granodiorite (trondhjemite)<br />
contains 5% to 10% veins of carbonate, quartz, tourmaline and pyrite in various<br />
orientations. Approximately 5% of the igneous rock contains healed faults and fractures,<br />
generally filled with chlorite and carbonate. They may correspond to the late,<br />
north-trending, 45°-dipping, carbonate-filled faults observed underground (Sutherland,<br />
1987).<br />
Some lithologies occur within the granodiorite. In mine terminology, these are “felsites”,<br />
“mafics” and “intermediates” (Deevy, 1992 and 1994). “Grey felsite” is the oldest of the<br />
three and possibly predates gold mineralization. It is predominately a medium to dark<br />
grey aphanitic body about 0.30 to 1.20 m thick that can be traced from one end of the<br />
mine to the other. Grey felsite may not in fact be an intrusive in its own right, but rather<br />
cataclastized granodiorite (trondhjemite) (Deevy, 1992). “Pink felsite” and “brown felsite”<br />
postdate gold mineralization. They are both fine-grained rocks of quartz-feldspar porphyry<br />
composition. They vary from a few centimetres to 3.5 m wide and can be traced for a<br />
hundred metres or more both laterally and vertically.<br />
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The “mafics” may be either dykes or xenoliths. They are dark green in colour, generally<br />
strongly foliated, and are of similar composition to the aureole mafic rocks (Deevy, 1992<br />
and 1994). These mafic rafts or dykes are up to 6 m wide (Bourne et al., 1987). The<br />
“intermediates” are much more limited in extent and have the texture of a crystal tuff.<br />
They are probably true xenoliths within the granodiorite. Both the mafic and intermediate<br />
xenoliths/dykes predate gold mineralization (Deevy, 1992 and 1994).<br />
Figure 7.4<br />
Geology of the Magino mine area<br />
(adapted and modified from Sage 1990, 1993b, 1993c and 1993d)<br />
Several diabase dykes up to 12 m wide, of probable Keweenawan age, strike<br />
north-north-west and cut all rock types (Bourne et al., 1987). Diamond drilling east of the<br />
diabase dyke marking the eastern limit of underground workings in the “old mine” indicates<br />
that the granodiorite(trondhjemite)-metavolcanic contact has been offset by approximately<br />
50 feet (15 m), and that the dip of the contact at this location is vertical instead of 65° to<br />
the north as is found west of the dyke. Bourne et al. (1987) believe the diabase dyke<br />
intruded a pre-existing fault zone along which movement was mainly rotational in nature<br />
(sinistral displacement), which would explain both the apparent horizontal offset and the<br />
marked change in dip. The horizontal distance between mineralized zones across this<br />
structure exceeds that shown for the displacement of the stock’s margins on mine plans<br />
(Nielsen, 1997). This suggests that if displacement entirely post-dates mineralization, it<br />
must have been oblique, or alternatively, the zones on either side of the diabase are not<br />
related (Nielsen, 1997).<br />
The granodiorite (trondhjemite) intrusion is cut by numerous shear zones related to the<br />
Goudreau Lake Deformation Zone and it is on these shear-hosted gold-bearing quartz<br />
veins that the Magino mine occurs (Sage, 1994). The portion of the intrusion north of the<br />
deformation zone hosts the gold mineralization and is more deformed than the southern<br />
portion. The Goudreau Lake Deformation Zone is a major contact between Cycle 2 to the<br />
south and Cycle 3 to the north. In the Magino mine area, the Goudreau Lake Deformation<br />
Zone consists of a 070°-striking, ductile-brittle zone sub-parallel to dextral oblique-slip<br />
high-strain zones developed within strongly altered and deformed, felsic to intermediate<br />
metavolcanic rocks (Heather and Arias, 1992).<br />
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7.5 <strong>Gold</strong> mineralization<br />
<strong>Gold</strong> mineralization at the Magino gold mine occurs within the Webb Lake granodiorite<br />
(trondhjemite) stock. The Webb Lake stock underwent variable metasomatic alteration<br />
during deformation and gold mineralization (Heather and Arias, 1992). Distinct haloes of<br />
quartz-sericite-pyrite with minor Fe-carbonate and hematite alteration are observed<br />
adjacent to the quartz vein systems. Alteration of the Webb Lake stock outside the goldbearing<br />
zones is manifested by a chlorite-albite-quartz-tourmaline-calcite assemblage<br />
(Heather and Arias, 1992). Locally present within the stock are lenticular chlorite-schist<br />
zones that represent either strongly foliated mafic metavolcanic xenoliths or a chloritealtered<br />
felsic intrusion (Heather and Arias, 1992).<br />
<strong>Gold</strong> mineralization occurs in several sub-parallel high-strain zones striking 070°–080°<br />
within the Webb Lake stock and within mafic metavolcanic rocks immediately along the<br />
northern margin of the stock (Heather and Arias, 1992). Deevy (1992 and 1994)<br />
distinguished and described two types of ore shoots, namely “zones” and “veins”. The<br />
“zones” are usually 2 to 4.5 m wide and have a strike length of 25 to 70 m. They consist<br />
of foliated, bleached and silica-flooded granodiorite (trondhjemite). The zones are folded<br />
in places, which produces mineable widths of up to 10.5 m. The “zones” dip at about the<br />
same angle as the foliation and have a vertical plunge. The vertical continuity of the<br />
“zones” is at a vertical to horizontal ratio of 2.5:1 (Deevy, 1994). Weak bleaching and<br />
silica flooding are the distinguishing features of the “zones” (Deevy, 1994). Silica flooding<br />
consists of incipient pale gray quartz replacing the foliated granodiorite. <strong>Gold</strong> content is<br />
directly related to the amount of silica flooding (Deevy, 1994).<br />
The “veins” consist of discrete pale grey to pale green to almost white quartz veins varying<br />
in width from a few to 45 centimetres. They have a strike length of several to 35 m. <strong>Gold</strong><br />
values are distributed erratically within the veins, but overall grades are quite high. The<br />
veins are folded in places, with gold concentrated in the fold noses (Deevy, 1992 and<br />
1994). Vertical continuity of the “veins” is similar to that of the “zones”, and the plunge is<br />
also vertical.<br />
Native gold occurs in zones of pervasive silicification and in narrow (i.e.,
<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />
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Figure 7.5<br />
Historical G Zone in the 24+75E drift<br />
The granodiorite (trondhjemite) is sericitized, carbonatized, silicified and chloritized.<br />
<strong>Gold</strong>-bearing quartz veins have diffuse boundaries. Photographed area is 50 centimetres<br />
across (from Sutherland, 1987)<br />
Figure 7.6<br />
<strong>Gold</strong>-bearing veins on the face of the 23+80E drift<br />
Note the vein spacing and sericite alteration selvage along the vein contact. Centre vein<br />
is 15 centimetres wide (from Sutherland, 1987)<br />
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7.6 Structures associated with gold mineralization<br />
There is a strong structural control on the gold-bearing quartz vein system within the<br />
Webb Lake stock. The system consists of several main 070°- to 075°-striking high-strain<br />
zones, which in turn consist of subsidiary, parallel 070°- to 075°-striking mineralized zones<br />
(Heather and Aria, 1992). The zones are also parallel to the regional schistosity in this<br />
area, which strikes 070°. Individual quartz veins are localized within narrow, secondary,<br />
brittle-ductile shear fractures with the following documented attitudes and apparent<br />
horizontal displacements (Heather and Arias, 1992):<br />
a) 080°-090° / 65°N, ductile, dextral (oblique-slip)<br />
b) 045°-055° / 70°N, ductile, (?)<br />
A strongly developed foliation defined by elongated feldspar and aligned sericite has been<br />
observed wrapping asymptotically into the narrow shear fractures (Heather and Arias,<br />
1992). These shear-fractures appear to splay off each other, with the 085° set being<br />
dominant. Surface outcrops show no obvious crosscutting relationships between these<br />
two sets of shear-fractures, suggesting synchronous development (Heather and Arias,<br />
1992). Underground, however, it was reported by Magino’s mine geologist T. Deevy that<br />
the 055° set is part of a conjugate set of post-ore faults (1991 pers. comm. cited in<br />
Heather and Arias, 1992). Locally, the veins are better developed within the 085°-striking<br />
fracture set than in the 055° set. Some of the auriferous high-strain zones comprise two<br />
or more obliquely-oriented auriferous vein structures (e.g., the 070°-striking high-strain<br />
zone containing 085°- and 050°-striking veins) (Heather and Arias, 1992).<br />
Underground at the Magino mine, mine geologist T. Deevy noted that raise-mining on a<br />
single quartz vein structure revealed that the vein rolls from a dip of 80° to 60° and back to<br />
80° over a vertical distance of roughly 15 m. He also noted that the best gold grades are<br />
found at the intersections between vein-bearing shear fractures with different orientations<br />
(1987 pers. comm. cited in Heather and Arias, 1992). The plunge of the Magino<br />
mineralization is sub-vertical and parallel to measured elongation lineations defined by<br />
stretched feldspar crystals (Heather and Arias, 1992).<br />
The brittle-ductile shear fractures and associated veins are consistently offset by a few<br />
centimetres along brittle fractures with the following attitudes and apparent horizontal<br />
displacements (Heather and Arias, 1992):<br />
a) 190° (010°) / 85°W, brittle, sinistral<br />
b) 310° (130°) 67°N, brittle, dextral<br />
North-striking late tourmaline-quartz veins cut both the Webb Lake stock and<br />
aforementioned gold-bearing quartz vein systems (Heather and Arias, 1992). Zones of<br />
intense tourmaline-quartz fracture-filling, flooding and brecciation are locally present within<br />
the Webb Lake stock. This late tourmaline-quartz mineralization uses the pre-existing<br />
fracture network in the rock. The tourmaline-quartz fracture-fillings and veins can contain<br />
anomalous gold values, especially where they cut an earlier gold-bearing quartz vein.<br />
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7.7 Current view on mineralization controls and identification<br />
of ore zones<br />
The mineralization of the Magino Mine is associated with varying amounts of alteration to<br />
the Webb Lake Stock. This variation is marked by five progressive levels of<br />
alteration/deformation described below. In general; alteration levels are marked by<br />
increasing amount of foliation, sericite alteration, silicification (veining, flooding, pervasive<br />
silicification) and pyrite mineralization. Carbonatization is also apparent, but it is poorly<br />
understood if variation from calcite to ankerite is associated with higher gold grades. In<br />
areas such as the Northeast zone it is also suggested that the focus, or central and most<br />
highly altered portion of the ‘zone’ is associated with dolomite alteration, however this<br />
needs more study.<br />
Generally four (4) levels of alteration to Webb Lake Stock Granodiorite are recognized, as<br />
follows:<br />
Granodiorite: Relatively unaltered, coarse grained, equigranular quartz – plagioclase –<br />
chlorite +/- carbonate with typically > 10 % chlorite, network texture, no planar fabric is<br />
observed.<br />
Weakly Altered Granodiorite: Weakly developed planar fabric (foliation) caused by the<br />
alignment of sericite/chlorite grains, unit is finer grained than “Network Granodiorite”<br />
however relict texture can still be interpreted. Quartz +/- carbonate +/- tourmaline veining<br />
varies from 1 – 2 %, pyrite mineralization is elevated in places but generally < 0.5 %.<br />
Moderately Altered Granodiorite: Well developed planar fabric (foliation) caused by<br />
alignment of sericite/chlorite grains which make up > 20% of the rock. This planar<br />
sericite/chlorite alignment is referred to as “Sericite Lace”. Dependent on amount of<br />
chlorite this rock has a light green to light grey – grey colour. The Unit is finer grained<br />
than weakly altered granodiorite, with rounded quartz crystals. Quartz +/- carbonate +/-<br />
tourmaline veining varies from 2 – 5%, pyrite mineralization is elevated in places but<br />
generally 0.5 – 1%<br />
Strongly Altered Granodiorite: Well developed planar fabric (foliation) caused by<br />
alignment of sericite/chlorite/quartz grains which make up > 80% of the rock, the<br />
remaining constituent being quartz +/- carbonate +/- tourmaline veining. Visible gold is<br />
most commonly observed in this alteration, and the presence of visible gold is believed to<br />
be dependent on amount of smokey grey quartz veining/flooding (i.e. silica in the system<br />
at that locality). <strong>Gold</strong> bearing grey (altered) quartz veins are typically sub-parallel to<br />
foliation, mm-cm in scale with some 5-10 grey quartz flooded zones. The rock has a<br />
green and more often a light tan – pink coloration, remnant intrusive texture is completely<br />
destroyed. Remnant quartz phenocrysts are often augen shape and appear isolated in<br />
the sericite matrix.<br />
Visible gold is nearly always observed within silica (most typically small veinlets of smokey<br />
grey quartz). <strong>Gold</strong> emplacement within the moderate to strong altered zones is somewhat<br />
erratic due to the anastomosing nature of silica (quartz vein/flooding emplacement). As<br />
veins are typically
<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />
Project, Ste. Sault Marie Mining District, Ontario<br />
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It is understood that historic logging and some mapping of the Magino deposit was<br />
focused on identifying several ‘types’ (or compositional phases) of granodiorite. It is<br />
because of this interpretation, that <strong>Prodigy</strong>’s geologists believe the past geological<br />
interpretation was forced into a model where the central portion of the stock was<br />
considered a more mafic ‘phase’ and then there were ring shaped outer phases, with a<br />
more felsic (and more calcic trondjhemite) phase along the contacts. <strong>Prodigy</strong>’s<br />
interpretation consists of sigmoidal cross-cutting zones which are folded (drag) in places<br />
and offset. To some extent, the historic phases were described similarly to the varying<br />
amounts of alteration/deformation that are now observed, however the phases were<br />
described primarily utilizing compositional differences, ignoring most<br />
alteration/deformation variations, and so the historic geologic logging data is not as useful<br />
for modelling, beyond the use for general lithology (i.e. Granodiorite or Metavolcanic).<br />
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8 Deposit types<br />
Information in this section has been excerpted from Turcotte, B., and Pelletier, C., (May<br />
2009).<br />
Lode gold deposits (gold from bedrock sources: Figure 8.1) occur dominantly in terranes<br />
with an abundance of volcanic and clastic sedimentary rocks of low to medium<br />
metamorphic grade (Poulsen, 1996). The Magino mine is an orogenic gold occurrence<br />
related to longitudinal shear zones (greenstone-hosted quartz-carbonate vein deposit).<br />
Greenstone-hosted quartz-carbonate vein deposits are a subtype of lode-gold deposits<br />
(Poulsen et al., 2000). They correspond to structurally controlled, complex epigenetic<br />
deposits hosted in deformed metamorphosed terranes (Dubé and Gosselin, 2007).<br />
Figure 8.1<br />
Inferred crustal levels of gold deposition showing the different types of<br />
lode gold deposits and the inferred deposit clan<br />
(from Dubé et al., 2001; Poulsen et al., 2000)<br />
Greenstone-hosted quartz-carbonate vein deposits consist of simple to complex networks<br />
of gold-bearing, laminated quartz-carbonate fault-fill veins in moderately to steeply<br />
dipping, compressional brittle-ductile shear zones and faults with locally associated<br />
shallow-dipping extensional veins and hydrothermal breccias. They are hosted by<br />
greenschist to locally amphibolite-facies metamorphic rocks of dominantly mafic<br />
composition and formed at intermediate depth in the crust (5-10 km). They are distributed<br />
along major compressional to transtensional crustal-scale fault zones in deformed<br />
greenstone terranes of all ages, but are more abundant and significant, in terms of total<br />
gold content, in Archean terranes. Greenstone hosted quartz-carbonate veins are thought<br />
to represent a major component of the greenstone deposit clan (Figure 8.1) (Dubé and<br />
Gosselin, 2007). They can coexist regionally with iron formation-hosted vein and<br />
disseminated deposits, as well as with turbidite-hosted quartz-carbonate vein deposits<br />
(Figure 8.2).<br />
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Figure 8.2 Schematic diagram illustrating the setting of greenstone-hosted<br />
quartz-carbonate vein deposits<br />
(from Poulsen et al., 2000)<br />
The main gangue minerals are quartz and carbonate, with variable amounts of white<br />
micas, chlorite, scheelite and tourmaline. The sulphide minerals typically constitute less<br />
than 10% of the ore. The main ore minerals are native gold with pyrite, pyrrhotite and<br />
chalcopyrite without significant vertical zoning (Dubé and Gosselin, 2007).<br />
The Magino gold deposit lies within the Goudreau Lake Deformation Zone, a major<br />
contact between Cycle 2 felsic to intermediate pyroclastic metavolcanic rocks to the south<br />
and Cycle 3 massive pillowed mafic metavolcanic rocks to the north (Heather and Arias,<br />
1992). The Goudreau Lake Deformation Zone appears to be spatially related to a large,<br />
regionally mappable intrusive sheet. This rigid meta-intrusive body deformed in a brittle<br />
manner relative to the enclosing mafic metavolcanic rocks, thus acting as a competency<br />
contrast and thereby focusing the strain and associated mineralization (Heather and Arias,<br />
1992).<br />
In the Magino gold deposit area, the Goudreau Lake Deformation Zone (Figure 8.3) is<br />
characterized as a 1- to 2-kilometre wide, 070°-striking zone of sub-parallel ductile and<br />
brittle-ductile high-strain zones (Heather and Arias, 1992). <strong>Gold</strong> mineralization occurs in<br />
these high-strain zones.<br />
At the regional scale, there is no readily discernible alteration pattern directly related to<br />
gold mineralization. However, rocks within the Goudreau Lake Deformation Zone are<br />
slightly more altered relative to the rest of the supracrustal rocks in the Michipicoten<br />
Greenstone Belt. This suggests that hydrothermal fluids were preferentially focused into<br />
regional deformation zones (Heather and Arias, 1992).<br />
Regionally, two types of gold mineralization have been recognized in the Magino gold<br />
mine area (Heather and Arias, 1992): (a) quartz veins hosted by brittle and brittle-ductile<br />
high strain zones; (b) brittle fault-hosted breccia-style mineralization.<br />
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Figure 8.3<br />
Location of the Goudreau Lake deformation zone<br />
(adapted and modified from Heather and Arias, 1992)<br />
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9 Exploration<br />
In August 2010, Kodiak announced an agreement with <strong>Gold</strong>en Goose to evaluate the<br />
Magino gold property.<br />
Since that announcement, Kodiak has conducted a review of the geological and<br />
exploration data, and recompiled the drillhole and assay database in metric format. In<br />
addition, Kodiak has undertaken sampling of previously un-sampled intervals of drill core<br />
from the 2006 program, and submitted these for assaying at independent analytical<br />
laboratories.<br />
The intervals of core that had been previously sampled by <strong>Gold</strong>en Goose were visually<br />
mineralised and/or altered and interpreted as vein structures that might be amenable to<br />
underground mining. The intervening altered intervals were regarded as disseminated<br />
mineralization; were not the focus of <strong>Gold</strong>en Goose’s recent program; and remained<br />
un-sampled.<br />
In response to higher prevailing gold prices in 2010, Kodiak considered that Magino’s<br />
disseminated mineralization could be evaluated as an open pittable mining scenario.<br />
In addition to the further sampling undertaken on existing drill core, <strong>Prodigy</strong> has conducted<br />
surface diamond core drilling throughout 2011 and this program is described in Section 10<br />
Drilling.<br />
Details of pre-<strong>Prodigy</strong> exploration other than drilling undertaken at the Magino property are<br />
presented in Section 6 History.<br />
Gould <strong>Gold</strong> property<br />
The Gould <strong>Gold</strong> property covers an extensive sequence of gabbroic intrusive and<br />
metavolcanic rocks along a prospective structural trend that is parallel to the Magino gold<br />
deposit. There is no information from this property contained in the database that was<br />
provided to Snowden.<br />
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10 Drilling<br />
<strong>Prodigy</strong> commenced an in-fill drilling program at Magino in January 2011. Assays from<br />
the drilling undertaken by <strong>Prodigy</strong> from January 2011 until approximately mid-September<br />
2011 are included in the mineral resource estimate reported in this technical report.<br />
Assays from drilling undertaken by <strong>Prodigy</strong> after mid-September 2011 are not included in<br />
the updated resource report.<br />
Details of pre-<strong>Prodigy</strong> drilling are provided in Section 6 History.<br />
10.1 <strong>Prodigy</strong> drilling<br />
10.1.1 Type and extent<br />
In late 2010 <strong>Prodigy</strong> designed a 20,000 m diamond core drilling program on the whollyowned<br />
Magino Mine property. The drilling program, designed to in-fill and expand the<br />
existing resource, started on 4 January 2011. In May 2011 <strong>Prodigy</strong> announced a doubling<br />
of the drill program to approximately 45,000 metres. The program is carried out by various<br />
rigs from two contractors: Northstar Drilling and Discovery Drilling.<br />
To mid-September, Northstar Drilling completed 42 of the drillholes and Discovery Drilling<br />
completed 85 drillholes.<br />
Information used in the resource estimate update includes 29,755.84 m of drilling from 127<br />
<strong>Prodigy</strong> drillholes. Core diameters are: HQ in five (5) holes; NQ in eighty-one (81) holes;<br />
and NQ2 in forty-one (41) holes.<br />
The drill rigs are conventional wireline machines operated by experienced drilling<br />
companies. Due to the proximity of underground workings several holes were<br />
commenced as HQ diameter and were reduced to NQ diameter on intersecting the<br />
workings.<br />
Details of the <strong>Prodigy</strong> drillholes are provided in Table 10.1.<br />
Table 10.1<br />
<strong>Prodigy</strong> drilling details<br />
Item Total Minimum Maximum Average<br />
Number of drillholes 127 50 m length 710 m length 234 m length<br />
Collar easting - 688171 mE 689375 mE -<br />
Collar northing - 53508541 mN 535081643 mN -<br />
Collar elevation - 388 mRL 406 mRL -<br />
10.1.2 Procedures followed<br />
Drillholes are located and set-up so that, as much as possible, the drillholes are<br />
perpendicular to the strike and dip of the mineralized zones at Magino. Drillhole collar<br />
locations are surveyed to 1 cm accuracy using DGPS instruments, and drillhole paths are<br />
typically surveyed at 3 m intervals using a multishot instrument. Eighteen drillhole paths<br />
were surveyed at intervals of 20 m to 50 m using a single shot instrument, and 3 drillhole<br />
paths remained unsurveyed.<br />
Drill core at Magino is boxed, covered, and sealed at the drill rig and moved to the <strong>Prodigy</strong><br />
logging and sample preparation facilities by <strong>Prodigy</strong> personnel. The core is then split<br />
down the centre using a typical table fed circular rock saw normally at one metre intervals.<br />
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Core from this drilling is currently stored next to the company’s core shed facilities north of<br />
the town of Dubreuilville, Ontario.<br />
10.1.3 Relevant results<br />
Results from <strong>Prodigy</strong>’s core drilling program were reported in five news releases during<br />
2011 (18 May, 20 June, 4 August, 30 August and 27 September).<br />
Table 10.2 provides a summary of mineralization intercepts from <strong>Prodigy</strong>’s drilling<br />
program. The records are composited intervals where the cut-off grade is 0.35 g/t Au over<br />
a minimum length of 5 m. Composited intervals can include up to 5 m of assays below<br />
0.35 g/t Au. The estimated true thickness reflects 76 % of the downhole drill length.<br />
Table 10.2<br />
<strong>Prodigy</strong> drillhole mineralization intersect results<br />
Drillhole<br />
From<br />
(m)<br />
To (m)<br />
Length<br />
(m)<br />
Estimated true<br />
thickness (m)<br />
Au g/t<br />
MA11-001 68.0 73.6 5.6 4.3 0.31<br />
MA11-001 82.8 115.0 32.2 24.5 0.35<br />
MA11-001 127.9 197.7 69.8 53.0 0.88<br />
MA11-001 204.0 212.0 8.0 6.1 0.45<br />
MA11-001 218.0 229.0 11.0 8.4 0.43<br />
MA11-001 250.0 260.0 10.0 7.6 0.55<br />
MA11-001 267.0 272.0 5.0 3.8 0.52<br />
MA11-001 282.0 294.4 12.4 9.4 1.05<br />
MA11-001 301.0 318.3 17.3 13.1 0.35<br />
MA11-001 338.2 359.0 20.8 15.8 1.15<br />
MA11-001 365.0 401.0 36.0 27.4 1.11<br />
MA11-001 470.0 479.0 9.0 6.8 2.26<br />
MA11-001 485.0 490.0 5.0 3.8 0.64<br />
MA11-002 0.0 0.0 0.0 0.0 0.00<br />
MA11-003 128.0 145.0 17.0 12.9 1.68<br />
MA11-003 163.0 175.0 12.0 9.1 0.81<br />
MA11-003 182.0 223.0 41.0 31.2 1.52<br />
MA11-003 230.0 240.0 10.0 7.6 0.30<br />
MA11-003 312.0 321.0 9.0 6.8 0.60<br />
MA11-004 125.0 228.0 103.0 78.3 2.09<br />
MA11-004 237.0 248.0 11.0 8.4 0.50<br />
MA11-004 255.0 272.4 17.4 13.2 1.10<br />
MA11-004 306.6 317.0 10.4 7.9 27.14<br />
MA11-004 334.0 340.0 6.0 4.6 1.70<br />
MA11-004 511.0 526.0 15.0 11.4 0.32<br />
MA11-004 545.0 558.0 13.0 9.9 0.48<br />
MA11-004 572.0 594.0 22.0 16.7 0.39<br />
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Drillhole<br />
From<br />
(m)<br />
To (m)<br />
Length<br />
(m)<br />
Estimated true<br />
thickness (m)<br />
Au g/t<br />
MA11-004 610.0 623.0 13.0 9.9 2.99<br />
MA11-004 635.0 655.0 20.0 15.2 0.45<br />
MA11-004 681.0 703.0 22.0 16.7 2.00<br />
MA11-005 113.0 122.0 9.0 6.8 0.20<br />
MA11-005 156.0 161.0 5.0 3.8 1.20<br />
MA11-005 171.0 176.0 5.0 3.8 0.69<br />
MA11-005 201.0 207.4 6.4 4.8 1.32<br />
MA11-005 226.0 241.0 15.0 11.4 0.40<br />
MA11-005 252.0 259.0 7.0 5.3 1.48<br />
MA11-005 265.0 274.0 9.0 6.8 0.61<br />
MA11-005 321.0 331.0 10.0 7.6 6.92<br />
MA11-005 362.0 409.0 47.0 35.7 1.49<br />
MA11-006 131.0 244.7 113.7 86.4 1.69<br />
MA11-006 259.0 266.0 7.0 5.3 0.46<br />
MA11-006 295.0 301.0 6.0 4.6 1.87<br />
MA11-006 404.0 426.0 22.0 16.7 0.35<br />
MA11-006 446.0 459.0 13.0 9.9 0.38<br />
MA11-006 594.0 603.0 9.0 6.8 0.90<br />
MA11-006 614.0 634.0 20.0 15.2 0.63<br />
MA11-006 640.0 652.0 11.0 8.4 0.76<br />
MA11-007 79.0 86.0 7.0 5.3 1.00<br />
MA11-007 121.0 145.0 24.0 18.2 0.50<br />
MA11-007 153.0 158.0 5.0 3.8 0.43<br />
MA11-007 168.0 173.0 5.0 3.8 7.94<br />
MA11-007 208.0 238.0 30.0 22.8 0.57<br />
MA11-007 255.0 260.0 5.0 3.8 0.43<br />
MA11-007 285.0 290.0 5.0 3.8 2.37<br />
MA11-007 320.8 328.0 7.2 5.5 0.21<br />
MA11-007 366.0 372.0 6.0 4.6 5.23<br />
MA11-008 48.0 62.0 14.0 10.6 0.58<br />
MA11-008 71.0 90.0 19.0 14.4 1.16<br />
MA11-008 106.0 131.0 25.0 19.0 0.81<br />
MA11-008 164.0 169.0 5.0 3.8 0.35<br />
MA11-008 219.0 232.0 13.0 9.9 0.72<br />
MA11-008 244.5 252.0 7.5 5.7 0.34<br />
MA11-008 306.0 334.0 28.0 21.3 2.05<br />
MA11-008 363.0 369.0 6.0 4.6 0.47<br />
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Drillhole<br />
From<br />
(m)<br />
To (m)<br />
Length<br />
(m)<br />
Estimated true<br />
thickness (m)<br />
Au g/t<br />
MA11-008 385.0 412.0 27.0 20.5 0.45<br />
MA11-008 422.0 429.0 7.0 5.3 0.19<br />
MA11-008 439.0 451.0 12.0 9.1 1.55<br />
MA11-008 458.0 470.0 12.0 9.1 0.44<br />
MA11-008 477.0 508.0 31.0 23.6 0.78<br />
MA11-008 538.0 560.9 22.9 17.4 2.35<br />
MA11-008 575.0 591.0 16.0 12.2 1.06<br />
MA11-008 600.7 612.0 11.4 8.6 0.82<br />
MA11-008 629.0 635.0 6.0 4.6 0.21<br />
MA11-008 643.0 654.0 11.0 8.4 1.03<br />
MA11-009 30.4 36.0 5.6 4.3 0.97<br />
MA11-009 104.0 122.0 18.0 13.7 0.41<br />
MA11-009 138.0 181.0 43.0 32.7 0.74<br />
MA11-009 187.0 198.0 11.0 8.4 2.22<br />
MA11-009 239.0 312.0 73.0 55.5 1.30<br />
MA11-009 319.0 326.0 7.0 5.3 2.11<br />
MA11-009 333.0 338.0 5.0 3.8 0.82<br />
MA11-009 348.0 370.0 22.0 16.7 0.50<br />
MA11-009 401.0 420.0 19.0 14.4 2.31<br />
MA11-009 465.0 477.0 12.0 9.1 0.20<br />
MA11-009 505.0 513.0 8.0 6.1 1.09<br />
MA11-010 45.0 55.0 10.0 7.6 0.26<br />
MA11-010 78.0 93.0 15.0 11.4 0.17<br />
MA11-010 118.0 127.0 9.0 6.8 0.84<br />
MA11-010 163.0 173.0 10.0 7.6 0.58<br />
MA11-010 184.0 211.0 27.0 20.5 1.78<br />
MA11-010 225.0 235.0 10.0 7.6 0.34<br />
MA11-010 270.0 280.0 10.0 7.6 0.33<br />
MA11-011 9.0 18.0 9.0 6.8 0.33<br />
MA11-011 37.0 45.0 8.0 6.1 0.33<br />
MA11-012 20.0 26.0 6.0 4.6 0.45<br />
MA11-012 49.0 65.0 16.0 12.2 2.88<br />
MA11-012 86.0 99.0 13.0 9.9 0.60<br />
MA11-012 105.9 125.0 19.1 14.5 1.43<br />
MA11-012 133.0 143.3 10.3 7.8 3.02<br />
MA11-012 164.0 194.0 30.0 22.8 0.79<br />
MA11-013 50.0 55.0 5.0 3.8 5.57<br />
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Drillhole<br />
From<br />
(m)<br />
To (m)<br />
Length<br />
(m)<br />
Estimated true<br />
thickness (m)<br />
Au g/t<br />
MA11-013 61.0 80.0 19.0 14.4 0.35<br />
MA11-013 92.0 100.0 8.0 6.1 1.59<br />
MA11-014 31.0 39.0 8.0 6.1 1.11<br />
MA11-014 56.0 82.0 26.0 19.8 1.88<br />
MA11-014 89.0 98.0 9.0 6.8 0.41<br />
MA11-014 106.0 123.0 17.0 12.9 0.43<br />
MA11-014 136.0 143.0 7.0 5.3 5.87<br />
MA11-015 20.0 61.0 41.0 31.2 0.60<br />
MA11-016 11.0 16.0 5.0 3.8 0.39<br />
MA11-016 50.0 66.0 16.0 12.2 0.73<br />
MA11-016 80.0 86.0 6.0 4.6 0.38<br />
MA11-016 101.0 109.0 8.0 6.1 0.74<br />
MA11-016 129.0 154.0 25.0 19.0 0.49<br />
MA11-016 162.0 170.0 8.0 6.1 0.47<br />
MA11-016 182.0 191.0 9.0 6.8 2.86<br />
MA11-017 9.0 19.0 10.0 7.6 2.25<br />
MA11-017 29.0 36.0 7.0 5.3 2.59<br />
MA11-017 42.0 65.0 23.0 17.5 0.71<br />
MA11-017 79.0 86.0 7.0 5.3 0.62<br />
MA11-018 36.0 45.0 9.0 6.8 0.41<br />
MA11-018 54.0 61.0 7.0 5.3 0.75<br />
MA11-018 76.0 98.0 22.0 16.7 0.63<br />
MA11-018 107.0 117.0 10.0 7.6 0.38<br />
MA11-018 179.0 198.0 19.0 14.4 0.95<br />
MA11-018 204.0 218.0 14.0 10.6 0.33<br />
MA11-018 236.0 248.0 12.0 9.1 0.52<br />
MA11-018 374.0 386.0 12.0 9.1 2.36<br />
MA11-019 29.0 45.0 16.0 12.2 0.52<br />
MA11-019 88.0 104.0 16.0 12.2 1.16<br />
MA11-020 189.0 201.0 12.0 9.1 0.57<br />
MA11-020 230.0 259.0 29.0 22.0 0.51<br />
MA11-020 266.0 279.0 13.0 9.9 2.04<br />
MA11-020 299.0 308.0 9.0 6.8 0.60<br />
MA11-021 6.2 26.0 19.8 15.0 4.44<br />
MA11-022 26.0 69.0 43.0 32.7 0.81<br />
MA11-022 76.0 87.0 11.0 8.4 0.68<br />
MA11-023 249.0 255.0 6.0 4.6 1.59<br />
. Final 2 November 2011 58 of 118
<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />
Project, Ste. Sault Marie Mining District, Ontario<br />
NI 43-101 <strong>Technic</strong>al Report<br />
Drillhole<br />
From<br />
(m)<br />
To (m)<br />
Length<br />
(m)<br />
Estimated true<br />
thickness (m)<br />
Au g/t<br />
MA11-023 282.0 294.0 12.0 9.1 0.99<br />
MA11-023 387.0 402.0 15.0 11.4 0.56<br />
MA11-023 416.0 431.0 15.0 11.4 0.49<br />
MA11-024 20.0 37.0 17.0 12.9 0.61<br />
MA11-024 49.0 54.0 5.0 3.8 3.70<br />
MA11-024 75.0 104.0 29.0 22.0 0.96<br />
MA11-024 118.0 124.0 6.0 4.6 1.06<br />
MA11-025 15.0 24.0 9.0 6.8 1.94<br />
MA11-025 40.0 48.0 8.0 6.1 0.27<br />
MA11-025 66.0 83.0 17.0 12.9 0.42<br />
MA11-025 104.0 111.0 7.0 5.3 2.42<br />
MA11-025 121.0 135.0 14.0 10.6 1.38<br />
MA11-025 186.0 193.0 7.0 5.3 0.25<br />
MA11-026 12.0 20.0 8.0 6.1 1.30<br />
MA11-026 26.0 59.0 32.0 24.3 1.05<br />
MA11-026 77.0 89.0 12.0 9.1 1.10<br />
MA11-027 20.0 32.0 12.0 9.1 0.34<br />
MA11-027 64.0 85.0 21.0 16.0 0.49<br />
MA11-027 98.0 104.0 6.0 4.6 2.80<br />
MA11-027 114.0 132.0 18.0 13.7 0.82<br />
MA11-027 144.0 160.0 16.0 12.2 0.57<br />
MA11-028 77.0 97.0 20.0 15.2 0.62<br />
MA11-028 115.7 127.0 11.4 8.6 0.50<br />
MA11-028 136.0 150.0 14.0 10.6 0.54<br />
MA11-028 156.0 164.0 8.0 6.1 0.22<br />
MA11-028 170.0 196.0 26.0 19.8 0.87<br />
MA11-028 213.0 225.5 12.5 9.5 0.42<br />
MA11-029 0.0 0.0 0.0 0.0 0.00<br />
MA11-030 16.0 21.0 5.0 3.8 2.33<br />
MA11-030 32.2 38.0 5.8 4.4 0.82<br />
MA11-030 46.0 53.0 7.0 5.3 0.42<br />
MA11-030 169.0 176.0 7.0 5.3 4.96<br />
MA11-030 183.0 193.0 10.0 7.6 1.55<br />
MA11-030 200.0 208.0 8.0 6.1 0.70<br />
MA11-031 71.0 77.0 6.0 4.6 0.35<br />
MA11-031 90.0 100.0 10.0 7.6 0.31<br />
MA11-032 4.6 32.0 27.4 20.8 0.88<br />
. Final 2 November 2011 59 of 118
<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />
Project, Ste. Sault Marie Mining District, Ontario<br />
NI 43-101 <strong>Technic</strong>al Report<br />
Drillhole<br />
From<br />
(m)<br />
To (m)<br />
Length<br />
(m)<br />
Estimated true<br />
thickness (m)<br />
Au g/t<br />
MA11-032 38.0 72.0 34.0 25.8 0.63<br />
MA11-033 11.0 16.0 5.0 3.8 0.19<br />
MA11-034 37.0 54.0 17.0 12.9 0.80<br />
MA11-034 84.0 91.3 7.3 5.5 0.73<br />
MA11-034 105.0 136.0 31.0 23.6 1.19<br />
MA11-035 0.0 0.0 0.0 0.0 0.00<br />
MA11-036 60.0 65.0 5.0 3.8 0.34<br />
MA11-036 120.0 125.0 5.0 3.8 0.42<br />
MA11-036 160.7 179.0 18.4 13.9 0.46<br />
MA11-036 187.0 194.0 7.0 5.3 2.02<br />
MA11-036 217.7 228.0 10.3 7.8 0.34<br />
MA11-037 13.1 31.0 17.9 13.6 0.75<br />
MA11-037 54.0 94.0 40.0 30.4 1.10<br />
MA11-038 32.0 44.0 12.1 9.2 0.51<br />
MA11-039 21.0 28.0 7.0 5.3 0.54<br />
MA11-039 35.0 54.0 19.0 14.4 0.32<br />
MA11-039 71.0 78.0 7.0 5.3 0.66<br />
MA11-039 88.0 94.0 6.0 4.6 0.26<br />
MA11-039 112.0 135.0 23.0 17.5 0.56<br />
MA11-039 159.0 167.0 8.0 6.1 0.39<br />
MA11-039 187.0 194.0 7.0 5.3 0.39<br />
MA11-039 205.0 211.0 6.0 4.6 0.76<br />
MA11-039 250.0 258.0 8.0 6.1 0.29<br />
MA11-039 313.8 324.0 10.3 7.8 0.30<br />
MA11-040 34.0 41.0 7.0 5.3 0.21<br />
MA11-040 106.0 117.0 11.0 8.4 0.63<br />
MA11-040 166.0 181.0 15.0 11.4 0.49<br />
MA11-040 188.0 223.0 35.0 26.6 1.23<br />
MA11-041 21.0 51.0 30.0 22.8 1.57<br />
MA11-041 68.0 78.0 10.0 7.6 0.16<br />
MA11-041 86.0 104.0 18.0 13.7 1.08<br />
MA11-042 6.0 13.0 7.0 5.3 0.36<br />
MA11-042 21.0 45.0 24.0 18.2 0.79<br />
MA11-042 53.0 97.0 44.0 33.4 1.56<br />
MA11-042 123.0 137.0 14.0 10.6 2.71<br />
MA11-043 30.3 51.0 20.7 15.7 0.42<br />
MA11-043 81.0 100.0 19.0 14.4 0.47<br />
. Final 2 November 2011 60 of 118
<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />
Project, Ste. Sault Marie Mining District, Ontario<br />
NI 43-101 <strong>Technic</strong>al Report<br />
Drillhole<br />
From<br />
(m)<br />
To (m)<br />
Length<br />
(m)<br />
Estimated true<br />
thickness (m)<br />
Au g/t<br />
MA11-043 118.0 128.0 10.0 7.6 0.74<br />
MA11-043 147.0 157.0 10.0 7.6 0.62<br />
MA11-043 166.0 171.0 5.0 3.8 0.39<br />
MA11-043 182.0 188.0 6.0 4.6 0.37<br />
MA11-043 197.0 219.0 22.0 16.7 0.79<br />
MA11-043 225.0 230.0 5.0 3.8 0.99<br />
MA11-043 236.0 255.0 19.0 14.4 0.70<br />
MA11-044 10.0 38.0 28.0 21.3 0.60<br />
MA11-044 44.0 54.0 10.0 7.6 0.47<br />
MA11-045 14.0 51.0 37.0 28.1 0.42<br />
MA11-045 61.0 66.7 5.7 4.3 4.07<br />
MA11-045 72.0 97.0 25.0 19.0 0.47<br />
MA11-045 108.0 113.0 5.0 3.8 0.79<br />
MA11-045 140.0 146.0 6.0 4.6 0.24<br />
MA11-046 18.0 24.0 6.0 4.6 0.21<br />
MA11-046 61.0 85.0 24.0 18.2 0.62<br />
MA11-046 91.0 130.0 39.0 29.6 0.59<br />
MA11-046 136.0 143.0 7.0 5.3 0.37<br />
MA11-047 20.0 35.0 15.0 11.4 0.40<br />
MA11-048 15.0 46.0 31.0 23.6 0.49<br />
MA11-048 55.0 72.0 17.0 12.9 0.51<br />
MA11-049 65.0 77.0 12.0 9.1 3.85<br />
MA11-049 84.0 91.0 7.0 5.3 1.47<br />
MA11-049 98.0 106.0 8.0 6.1 0.35<br />
MA11-049 129.0 159.0 30.0 22.8 0.88<br />
MA11-050 59.0 74.0 15.0 11.4 0.39<br />
MA11-050 140.0 187.0 47.0 35.7 0.55<br />
MA11-050 211.5 247.0 35.5 27.0 0.43<br />
MA11-050 270.0 292.0 22.0 16.7 0.75<br />
MA11-050 298.0 330.0 32.0 24.3 0.70<br />
MA11-050 340.0 349.0 9.0 6.8 1.16<br />
MA11-050 357.0 365.0 8.0 6.1 0.83<br />
MA11-050 376.0 383.0 7.0 5.3 0.57<br />
MA11-051 24.0 35.0 11.0 8.4 0.39<br />
MA11-051 75.0 80.0 5.0 3.8 0.40<br />
MA11-051 99.0 120.0 21.0 16.0 0.39<br />
MA11-051 141.0 148.0 7.0 5.3 0.58<br />
. Final 2 November 2011 61 of 118
<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />
Project, Ste. Sault Marie Mining District, Ontario<br />
NI 43-101 <strong>Technic</strong>al Report<br />
Drillhole<br />
From<br />
(m)<br />
To (m)<br />
Length<br />
(m)<br />
Estimated true<br />
thickness (m)<br />
Au g/t<br />
MA11-051 201.0 212.0 11.0 8.4 0.80<br />
MA11-051 229.0 238.0 9.0 6.8 0.31<br />
MA11-051 253.0 258.0 5.0 3.8 0.53<br />
MA11-052 23.0 37.0 14.0 10.6 1.35<br />
MA11-052 53.0 61.0 8.0 6.1 0.37<br />
MA11-053 35.0 45.0 10.0 7.6 0.73<br />
MA11-053 70.0 76.0 6.0 4.6 0.18<br />
MA11-053 84.0 104.0 20.0 15.2 0.54<br />
MA11-054 26.0 70.0 44.0 33.4 1.19<br />
MA11-054 79.0 120.0 41.0 31.2 0.52<br />
MA11-055 69.0 74.0 5.0 3.8 1.78<br />
MA11-055 116.0 196.0 80.0 60.8 1.46<br />
MA11-055 211.0 222.0 11.0 8.4 0.64<br />
MA11-055 246.0 277.0 31.0 23.6 2.58<br />
MA11-056 31.6 98.0 66.4 50.5 1.41<br />
MA11-056 120.0 130.0 10.0 7.6 0.59<br />
MA11-057 118.0 123.0 5.0 3.8 0.20<br />
MA11-057 146.0 158.0 12.0 9.1 0.27<br />
MA11-057 167.0 182.0 15.0 11.4 1.38<br />
MA11-057 199.0 208.0 9.0 6.8 1.51<br />
MA11-057 214.0 234.0 20.0 15.2 0.27<br />
MA11-057 250.0 294.0 44.0 33.4 1.31<br />
MA11-057 310.0 316.0 6.0 4.6 0.31<br />
MA11-057 325.0 338.0 13.0 9.9 0.55<br />
MA11-058 5.0 10.0 5.0 3.8 3.02<br />
MA11-058 17.0 28.0 11.0 8.4 0.36<br />
MA11-059 5.0 33.0 28.0 21.3 0.38<br />
MA11-059 53.0 79.4 24.0 18.2 1.20<br />
MA11-060 20.0 60.0 40.0 30.4 1.19<br />
MA11-060 87.0 92.0 5.0 3.8 1.04<br />
MA11-060 99.0 107.0 8.0 6.1 1.06<br />
MA11-060 113.0 128.0 15.0 11.4 0.46<br />
MA11-061 8.4 16.3 7.9 6.0 1.23<br />
MA11-061 41.5 50.9 9.4 7.1 0.59<br />
MA11-061 59.0 70.0 11.0 8.4 0.35<br />
MA11-061 78.0 86.0 8.0 6.1 0.36<br />
MA11-061 99.0 149.0 50.0 38.0 1.08<br />
. Final 2 November 2011 62 of 118
<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />
Project, Ste. Sault Marie Mining District, Ontario<br />
NI 43-101 <strong>Technic</strong>al Report<br />
Drillhole<br />
From<br />
(m)<br />
To (m)<br />
Length<br />
(m)<br />
Estimated true<br />
thickness (m)<br />
Au g/t<br />
MA11-061 163.0 168.0 5.0 3.8 0.43<br />
MA11-061 184.0 192.0 8.0 6.1 2.20<br />
MA11-061 277.0 296.0 19.0 14.4 0.49<br />
MA11-061 340.0 346.0 6.0 4.6 3.18<br />
MA11-061 363.0 377.0 14.0 10.6 0.54<br />
MA11-061 383.0 388.0 5.0 3.8 0.29<br />
MA11-061 394.0 400.0 6.0 4.6 1.87<br />
MA11-062 22.0 32.0 10.0 7.6 0.46<br />
MA11-062 43.0 64.0 21.0 16.0 0.62<br />
MA11-062 73.0 85.0 12.0 9.1 0.73<br />
MA11-063 71.1 77.0 5.9 4.5 1.58<br />
MA11-063 118.0 142.0 24.0 18.2 1.08<br />
MA11-063 165.0 189.0 24.0 18.2 1.15<br />
MA11-064 9.2 27.0 17.9 13.6 0.59<br />
MA11-064 54.0 63.0 9.0 6.8 0.97<br />
MA11-064 109.0 128.0 19.0 14.4 0.73<br />
MA11-064 175.0 190.0 15.0 11.4 2.96<br />
MA11-065 45.0 77.0 32.0 24.3 0.55<br />
MA11-065 96.0 112.0 16.0 12.2 0.36<br />
MA11-065 141.0 169.0 28.0 21.3 0.33<br />
MA11-066 29.0 34.0 5.0 3.8 2.63<br />
MA11-067 0.0 0.0 0.0 0.0 0.00<br />
MA11-068 12.5 30.0 17.5 13.3 0.28<br />
MA11-068 93.0 98.0 5.0 3.8 2.04<br />
MA11-069 12.0 21.0 9.0 6.8 1.36<br />
MA11-069 47.0 59.0 12.0 9.1 0.46<br />
MA11-069 74.0 87.9 13.9 10.6 0.74<br />
MA11-069 94.0 99.0 5.0 3.8 3.19<br />
MA11-070 21.0 30.0 9.0 6.8 2.15<br />
MA11-070 43.0 54.0 11.0 8.4 1.41<br />
MA11-070 78.0 94.0 16.0 12.2 0.56<br />
MA11-071 24.0 67.0 43.0 32.7 0.46<br />
MA11-072 52.0 59.0 7.0 5.3 0.71<br />
MA11-072 97.0 102.0 5.0 3.8 0.90<br />
MA11-072 109.0 137.0 28.0 21.3 0.76<br />
MA11-073 113.0 120.0 7.0 5.3 0.23<br />
MA11-073 137.5 161.0 23.5 17.9 0.63<br />
. Final 2 November 2011 63 of 118
<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />
Project, Ste. Sault Marie Mining District, Ontario<br />
NI 43-101 <strong>Technic</strong>al Report<br />
Drillhole<br />
From<br />
(m)<br />
To (m)<br />
Length<br />
(m)<br />
Estimated true<br />
thickness (m)<br />
Au g/t<br />
MA11-073 190.0 207.0 17.0 12.9 0.77<br />
MA11-073 219.0 226.0 7.0 5.3 0.35<br />
MA11-073 233.0 243.0 10.0 7.6 0.99<br />
MA11-073 250.0 280.0 30.0 22.8 1.80<br />
MA11-074 51.0 67.0 16.0 12.2 0.69<br />
MA11-074 116.0 148.0 32.0 24.3 0.86<br />
MA11-074 167.0 175.0 8.0 6.1 1.83<br />
MA11-075 43.0 77.0 34.0 25.8 0.66<br />
MA11-076 5.5 17.0 11.5 8.7 0.58<br />
MA11-076 41.0 52.0 11.0 8.4 0.68<br />
MA11-076 69.0 98.0 29.0 22.0 0.37<br />
MA11-076 104.0 116.0 12.0 9.1 0.42<br />
MA11-076 132.0 137.0 5.0 3.8 1.17<br />
MA11-077 70.0 76.8 6.8 5.1 0.37<br />
MA11-077 82.9 96.0 13.2 10.0 0.31<br />
MA11-077 105.0 124.0 19.0 14.4 0.33<br />
MA11-077 144.0 201.0 57.0 43.3 1.33<br />
MA11-077 261.0 271.0 10.0 7.6 0.87<br />
MA11-077 290.0 295.8 5.8 4.4 0.19<br />
MA11-078 26.0 104.0 78.0 59.3 0.94<br />
MA11-078 142.0 157.0 15.0 11.4 0.33<br />
MA11-078 166.0 181.0 15.0 11.4 0.46<br />
MA11-078 188.0 203.0 15.0 11.4 1.35<br />
MA11-078 253.0 261.0 8.0 6.1 0.41<br />
MA11-078 278.0 288.0 10.0 7.6 0.25<br />
MA11-078 323.0 336.0 13.0 9.9 0.38<br />
MA11-078 352.0 359.0 7.0 5.3 0.25<br />
MA11-078 378.0 385.0 7.0 5.3 0.83<br />
MA11-079 21.0 73.0 52.0 39.5 0.64<br />
MA11-080 14.0 50.0 36.0 27.4 1.55<br />
MA11-081 106.0 132.0 26.0 19.8 0.63<br />
MA11-081 154.0 161.0 7.0 5.3 0.29<br />
MA11-081 173.0 182.0 9.0 6.8 0.29<br />
MA11-081 203.0 221.0 18.0 13.7 2.01<br />
MA11-081 227.0 254.0 27.0 20.5 1.90<br />
MA11-081 328.0 335.0 7.0 5.3 1.78<br />
MA11-082 15.0 31.0 15.0 11.4 0.66<br />
. Final 2 November 2011 64 of 118
<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />
Project, Ste. Sault Marie Mining District, Ontario<br />
NI 43-101 <strong>Technic</strong>al Report<br />
Drillhole<br />
From<br />
(m)<br />
To (m)<br />
Length<br />
(m)<br />
Estimated true<br />
thickness (m)<br />
Au g/t<br />
MA11-082 50.0 58.0 7.0 5.3 0.60<br />
MA11-082 119.0 146.0 25.0 19.0 0.30<br />
MA11-082 166.0 174.0 8.0 6.1 6.31<br />
MA11-082 180.0 192.0 12.0 9.1 0.55<br />
MA11-082 225.0 236.0 8.0 6.1 1.07<br />
MA11-082 311.0 320.0 9.0 6.8 1.12<br />
MA11-083 166.0 234.0 68.0 51.7 1.88<br />
MA11-083 257.0 325.0 68.0 51.7 0.69<br />
MA11-083 436.0 453.0 17.0 12.9 1.47<br />
MA11-084 25.0 57.0 32.0 24.3 0.52<br />
MA11-084 65.0 79.0 14.0 10.6 1.13<br />
MA11-084 93.0 138.0 45.0 34.2 0.78<br />
MA11-084 175.0 183.0 8.0 6.1 0.46<br />
MA11-084 205.0 211.0 5.0 3.8 0.27<br />
MA11-085 31.0 46.0 15.0 11.4 0.44<br />
MA11-086 11.0 24.0 13.0 9.9 0.65<br />
MA11-087 22.0 28.0 6.0 4.6 0.76<br />
MA11-087 66.0 71.0 5.0 3.8 0.25<br />
MA11-087 77.0 87.0 10.0 7.6 0.36<br />
MA11-088 53.0 58.0 5.0 3.8 0.44<br />
MA11-088 83.0 106.7 23.7 18.0 0.32<br />
MA11-088 121.0 129.0 8.0 6.1 0.26<br />
MA11-088 146.0 151.0 5.0 3.8 8.47<br />
MA11-088 167.3 175.0 7.7 5.9 0.83<br />
MA11-088 192.0 200.0 8.0 6.1 3.63<br />
MA11-088 237.0 247.0 10.0 7.6 0.45<br />
MA11-088 271.0 281.0 10.0 7.6 0.45<br />
MA11-089 34.0 98.0 64.0 48.6 0.66<br />
MA11-089 121.0 126.0 5.0 3.8 0.42<br />
MA11-089 139.0 155.0 16.0 12.2 1.20<br />
MA11-089 168.0 173.0 5.0 3.8 0.39<br />
MA11-089 191.3 197.0 5.7 4.3 4.11<br />
MA11-089 226.0 246.0 20.0 15.2 0.67<br />
MA11-089 260.0 269.0 9.0 6.8 0.30<br />
MA11-090 37.0 50.0 13.0 9.9 1.17<br />
MA11-090 96.0 103.0 7.0 5.3 0.41<br />
MA11-090 111.0 125.0 14.0 10.6 0.66<br />
. Final 2 November 2011 65 of 118
<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />
Project, Ste. Sault Marie Mining District, Ontario<br />
NI 43-101 <strong>Technic</strong>al Report<br />
Drillhole<br />
From<br />
(m)<br />
To (m)<br />
Length<br />
(m)<br />
Estimated true<br />
thickness (m)<br />
Au g/t<br />
MA11-090 175.0 231.0 56.0 42.6 0.49<br />
MA11-090 241.0 247.0 6.0 4.6 1.29<br />
MA11-091 71.0 85.0 14.0 10.6 1.67<br />
MA11-091 91.0 98.0 7.0 5.3 0.46<br />
MA11-091 107.0 150.0 43.0 32.7 0.37<br />
MA11-091 158.0 166.0 8.0 6.1 0.60<br />
MA11-091 177.0 209.0 32.0 24.3 1.05<br />
MA11-091 224.0 302.0 77.0 58.5 1.14<br />
MA11-091 386.0 393.0 7.0 5.3 0.26<br />
MA11-091 413.0 420.0 7.0 5.3 0.49<br />
MA11-092 57.0 64.0 7.0 5.3 0.33<br />
MA11-092 78.0 99.0 21.0 16.0 1.10<br />
MA11-092 192.0 200.0 8.0 6.1 0.25<br />
MA11-092 207.0 213.0 6.0 4.6 1.29<br />
MA11-092 222.0 270.0 48.0 36.5 0.80<br />
MA11-092 298.0 303.0 5.0 3.8 3.73<br />
MA11-092 311.0 318.0 7.0 5.3 0.19<br />
MA11-093 18.0 42.0 24.0 18.2 0.27<br />
MA11-093 51.0 63.5 12.5 9.5 0.51<br />
MA11-093 87.0 111.0 24.0 18.2 0.50<br />
MA11-093 144.0 156.0 12.0 9.1 0.22<br />
MA11-093 239.0 254.0 15.0 11.4 7.68<br />
MA11-094 75.0 97.0 22.0 16.7 1.35<br />
MA11-094 168.0 176.0 8.0 6.1 0.78<br />
MA11-094 187.0 208.0 21.0 16.0 0.46<br />
MA11-094 218.0 227.0 9.0 6.8 0.42<br />
MA11-094 233.0 254.0 19.0 14.4 1.09<br />
MA11-094 285.0 296.0 11.0 8.4 0.79<br />
MA11-095 47.0 53.8 6.8 5.2 0.36<br />
MA11-095 59.0 76.0 17.0 12.9 0.91<br />
MA11-095 97.0 112.0 13.0 9.9 2.47<br />
MA11-095 119.0 136.0 17.0 12.9 0.61<br />
MA11-095A 53.0 74.0 18.0 13.7 0.48<br />
MA11-095A 80.0 109.0 29.0 22.0 0.53<br />
MA11-095A 120.0 142.0 22.0 16.7 0.36<br />
MA11-095A 213.0 226.0 13.0 9.9 2.08<br />
MA11-095A 275.0 287.0 12.0 9.1 0.82<br />
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Drillhole<br />
From<br />
(m)<br />
To (m)<br />
Length<br />
(m)<br />
Estimated true<br />
thickness (m)<br />
Au g/t<br />
MA11-095A 296.0 304.0 8.0 6.1 0.80<br />
MA11-095A 319.0 326.0 7.0 5.3 1.56<br />
MA11-095A 334.0 344.0 10.0 7.6 1.06<br />
MA11-095A 352.0 403.0 47.0 35.7 0.98<br />
MA11-095A 421.0 441.0 20.0 15.2 0.71<br />
MA11-096 148.0 154.0 6.0 4.6 0.33<br />
MA11-096 186.0 194.0 8.0 6.1 0.80<br />
MA11-096 221.0 235.0 14.0 10.6 0.54<br />
MA11-096 251.0 271.0 20.0 15.2 1.03<br />
MA11-096 277.0 285.0 8.0 6.1 0.36<br />
MA11-096 294.0 301.9 7.9 6.0 0.39<br />
MA11-097 12.0 17.0 5.0 3.8 0.20<br />
MA11-097 80.0 105.0 23.0 17.5 1.79<br />
MA11-098 97.0 193.0 96.0 73.0 1.06<br />
MA11-098 200.4 223.0 22.6 17.2 1.16<br />
MA11-099 57.0 69.0 12.0 9.1 0.55<br />
MA11-099 85.0 142.0 57.0 43.3 0.47<br />
MA11-099 160.0 167.0 7.0 5.3 0.32<br />
MA11-100 5.0 17.0 12.0 9.1 0.86<br />
MA11-100 32.0 52.0 20.0 15.2 0.68<br />
MA11-100 60.0 69.0 9.0 6.8 0.47<br />
MA11-100 77.0 83.0 6.0 4.6 0.32<br />
MA11-100 101.0 111.0 10.0 7.6 2.98<br />
MA11-101 10.0 32.0 21.0 16.0 0.89<br />
MA11-101 101.0 133.0 32.0 24.3 0.36<br />
MA11-101 140.0 147.0 7.0 5.3 0.43<br />
MA11-101 153.0 158.0 5.0 3.8 0.44<br />
MA11-102 78.0 109.0 31.0 23.6 4.68<br />
MA11-103 22.0 34.0 12.0 9.1 0.59<br />
MA11-103 42.0 49.0 7.0 5.3 0.60<br />
MA11-103 56.0 63.0 7.0 5.3 1.21<br />
MA11-103 74.0 82.0 8.0 6.1 0.38<br />
MA11-104 56.0 61.0 5.0 3.8 0.34<br />
MA11-104 68.0 77.0 9.0 6.8 0.45<br />
MA11-104 83.0 111.0 27.0 20.5 0.48<br />
MA11-104 144.0 154.0 10.0 7.6 0.84<br />
MA11-104 174.0 189.0 15.0 11.4 2.54<br />
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Drillhole<br />
From<br />
(m)<br />
To (m)<br />
Length<br />
(m)<br />
Estimated true<br />
thickness (m)<br />
Au g/t<br />
MA11-104 197.0 217.0 20.0 15.2 0.46<br />
MA11-104 238.0 243.0 5.0 3.8 0.20<br />
MA11-104 250.0 270.0 20.0 15.2 0.44<br />
MA11-105 22.0 34.0 12.0 9.1 1.38<br />
MA11-105 42.0 66.0 24.0 18.2 6.36<br />
MA11-105 78.0 101.0 21.0 16.0 0.41<br />
MA11-105 116.0 150.0 34.0 25.8 0.76<br />
MA11-106 17.0 32.0 15.0 11.4 0.44<br />
MA11-106 81.0 102.0 21.0 16.0 3.75<br />
MA11-106 114.0 149.0 35.0 26.6 0.91<br />
MA11-106 156.0 192.0 34.0 25.8 0.83<br />
MA11-107 8.5 22.0 13.5 10.3 0.27<br />
MA11-107 92.0 98.0 6.0 4.6 0.31<br />
MA11-107 105.0 110.0 5.0 3.8 0.67<br />
MA11-107 121.0 127.0 6.0 4.6 0.29<br />
MA11-107 167.0 174.0 7.0 5.3 0.43<br />
MA11-107 186.0 208.0 22.0 16.7 2.86<br />
MA11-107 291.0 296.0 5.0 3.8 6.23<br />
MA11-107 319.0 325.0 6.0 4.6 2.61<br />
MA11-107 336.0 357.0 20.0 15.2 1.16<br />
MA11-107 364.0 382.0 18.0 13.7 0.64<br />
MA11-107 412.7 427.0 14.3 10.9 0.39<br />
MA11-108 22.0 31.0 9.0 6.8 1.01<br />
MA11-108 40.0 49.0 7.0 5.3 2.10<br />
MA11-108 73.0 80.0 7.0 5.3 0.77<br />
MA11-108 87.0 93.0 6.0 4.6 0.23<br />
MA11-109 24.0 35.0 11.0 8.4 0.41<br />
MA11-109 50.0 55.0 5.0 3.8 0.30<br />
MA11-110 45.0 58.0 13.0 9.9 0.32<br />
MA11-110 71.0 95.0 23.0 17.5 0.58<br />
MA11-111 56.0 65.0 9.0 6.8 0.57<br />
MA11-111 82.0 90.0 8.0 6.1 0.60<br />
MA11-112 55.0 63.0 8.0 6.1 0.88<br />
MA11-112 79.0 86.0 7.0 5.3 4.02<br />
MA11-112 96.0 122.0 26.0 19.8 0.38<br />
MA11-112 138.0 146.0 8.0 6.1 0.44<br />
MA11-112 152.0 159.0 7.0 5.3 0.49<br />
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Drillhole<br />
From<br />
(m)<br />
To (m)<br />
Length<br />
(m)<br />
Estimated true<br />
thickness (m)<br />
Au g/t<br />
MA11-112 165.0 175.0 10.0 7.6 1.35<br />
MA11-112 193.0 201.0 8.0 6.1 1.13<br />
MA11-112 224.0 236.0 12.0 9.1 7.08<br />
MA11-112 246.0 265.0 19.0 14.4 0.65<br />
MA11-112 340.0 345.0 5.0 3.8 0.69<br />
MA11-113 10.0 16.0 6.0 4.6 0.23<br />
MA11-113 24.0 41.0 16.2 12.3 0.88<br />
MA11-113 55.8 73.0 17.2 13.0 0.59<br />
MA11-114 77.0 83.0 6.0 4.6 1.15<br />
MA11-114 103.0 121.0 18.0 13.7 1.01<br />
MA11-114 127.0 137.0 10.0 7.6 1.72<br />
MA11-114 173.0 180.0 7.0 5.3 0.79<br />
MA11-114 203.0 210.0 7.0 5.3 0.86<br />
MA11-115 4.0 30.0 26.0 19.8 0.54<br />
MA11-115 36.0 42.0 6.0 4.6 2.48<br />
MA11-115 51.0 59.0 8.0 6.1 0.80<br />
MA11-115 65.0 78.0 11.0 8.4 2.44<br />
MA11-116 42.0 62.0 20.0 15.2 0.39<br />
MA11-116 91.0 103.0 12.0 9.1 0.30<br />
MA11-116 112.0 122.0 10.0 7.6 0.58<br />
MA11-117 Assays pending<br />
MA11-118 108.0 123.0 15.0 11.4 0.78<br />
MA11-118 163.0 180.0 17.0 12.9 0.61<br />
MA11-118 220.0 236.0 16.0 12.2 0.78<br />
MA11-119 167.0 198.0 31.0 23.6 1.02<br />
MA11-119 204.0 219.0 13.0 9.9 0.51<br />
MA11-119 234.0 251.0 17.0 12.9 0.59<br />
MA11-119 266.0 279.0 12.0 9.1 2.72<br />
MA11-120 41.0 51.0 10.0 7.6 0.99<br />
MA11-120 75.0 99.0 24.0 18.2 0.33<br />
MA11-120 107.0 129.0 22.0 16.7 0.35<br />
MA11-120 237.0 249.0 12.0 9.1 2.10<br />
MA11-120 255.0 265.0 10.0 7.6 0.81<br />
MA11-120 271.0 305.0 34.0 25.8 0.75<br />
MA11-120 324.0 334.0 10.0 7.6 0.30<br />
MA11-120 341.0 381.0 40.0 30.4 1.12<br />
MA11-120 387.0 430.0 43.0 32.7 1.05<br />
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Drillhole<br />
From<br />
(m)<br />
To (m)<br />
Length<br />
(m)<br />
Estimated true<br />
thickness (m)<br />
Au g/t<br />
MA11-120 452.0 469.0 17.0 12.9 0.64<br />
MA11-120 488.0 505.0 17.0 12.9 0.45<br />
MA11-121 Assays pending<br />
MA11-122 268.0 302.0 33.0 25.1 0.92<br />
MA11-122 320.0 325.0 5.0 3.8 0.69<br />
MA11-122 352.0 362.0 10.0 7.6 4.14<br />
MA11-122 374.0 380.0 4.0 3.0 7.98<br />
MA11-123 126.0 147.0 21.0 16.0 0.56<br />
MA11-123 157.0 162.0 5.0 3.8 1.65<br />
MA11-123 176.0 187.0 11.0 8.4 0.45<br />
MA11-123 194.0 199.0 5.0 3.8 0.53<br />
MA11-123 251.0 269.0 18.0 13.7 0.34<br />
MA11-123 276.0 287.0 9.0 6.8 1.00<br />
MA11-123 304.0 309.0 5.0 3.8 0.48<br />
MA11-123 318.0 344.0 24.0 18.2 0.96<br />
MA11-123 351.0 369.0 17.0 12.9 0.52<br />
MA11-123 394.0 401.0 7.0 5.3 0.54<br />
MA11-123 439.0 445.0 5.0 3.8 0.85<br />
MA11-124 Assays pending<br />
MA11-125 184.0 279.0 95.0 72.2 1.45<br />
MA11-125 285.0 325.0 38.0 28.9 0.86<br />
MA11-125 342.0 360.2 18.2 13.8 17.24<br />
MA11-125 438.0 443.0 5.0 3.8 0.29<br />
MA11-126 8.0 14.0 6.0 4.6 2.92<br />
MA11-126 23.0 31.0 7.0 5.3 1.01<br />
MA11-126 37.0 87.0 49.0 37.2 1.25<br />
MA11-127 77.0 95.0 17.0 12.9 0.30<br />
MA11-127 105.0 125.0 20.0 15.2 0.81<br />
MA11-127 247.0 255.0 8.0 6.1 0.69<br />
MA11-127 272.0 278.0 6.0 4.6 0.64<br />
MA11-127 286.6 298.0 11.4 8.7 1.65<br />
MA11-127 317.0 322.0 5.0 3.8 2.61<br />
MA11-127 337.0 342.0 5.0 3.8 0.69<br />
MA11-127 350.0 360.0 8.0 6.1 1.73<br />
MA11-128 132.0 147.0 15.0 11.4 0.38<br />
MA11-128 212.0 273.0 61.0 46.4 0.41<br />
MA11-128 305.0 348.0 42.0 31.9 0.66<br />
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NI 43-101 <strong>Technic</strong>al Report<br />
Drillhole<br />
From<br />
(m)<br />
To (m)<br />
Length<br />
(m)<br />
Estimated true<br />
thickness (m)<br />
Au g/t<br />
MA11-128 379.0 392.0 13.0 9.9 0.57<br />
MA11-129 Assays pending<br />
MA11-130 Assays pending<br />
MA11-131 108.0 115.0 7.0 5.3 0.99<br />
MA11-131 121.0 127.0 6.0 4.6 0.62<br />
MA11-131 163.0 184.0 21.0 16.0 0.47<br />
MA11-131 198.0 239.0 39.0 29.6 1.10<br />
MA11-131 257.0 272.0 15.0 11.4 0.96<br />
MA11-131 284.0 300.0 16.0 12.2 0.55<br />
MA11-131 310.0 316.0 6.0 4.6 0.34<br />
MA11-131 322.0 361.0 39.0 29.6 1.06<br />
MA11-131 396.0 410.0 14.0 10.6 0.32<br />
MA11-131 417.0 434.0 17.0 12.9 0.32<br />
MA11-131 462.0 467.0 4.0 3.0 1.60<br />
10.1.4 Factors that could materially impact the accuracy and reliability of<br />
the results<br />
In the author’s opinion there are no recovery factors that would materially affect sampling.<br />
The rock mass is typically tight and recovery information indicates better than 98% core<br />
recovery in the granodiorite stock. Core recoveries can be affected in proximity to<br />
underground workings.<br />
10.1.5 Drill plan<br />
Figure 10.1 provides the location of <strong>Prodigy</strong> drillholes as at mid-September 2011. The<br />
outline of the proposed pit shown in this figure is now superseded.<br />
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NI 43-101 <strong>Technic</strong>al Report<br />
Figure 10.1<br />
Plan view of <strong>Prodigy</strong> drillhole locations<br />
10.1.6 Examples of drill sections<br />
Figure 10.2 to Figure 10.4 illustrate representative examples of drill sections through the<br />
Magino mineral deposit. Depictions of a PEA Pit Outline in these figures are now<br />
superseded.<br />
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Figure 10.2<br />
Drill cross section 300SW<br />
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Figure 10.3<br />
Drill cross section 1375SW<br />
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Figure 10.4<br />
Drill cross section 1180SW<br />
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11 Sample preparation, analyses and security<br />
11.1 Sampling method and approach<br />
Sampling at Magino has been carried out through drill core sampling and underground<br />
channel sampling. The current database contains no verified channel sample data and<br />
therefore this sample type has not been used in the current study.<br />
The reader is referred to Section 6 History for details of pre-<strong>Prodigy</strong> sampling programs.<br />
Drill core programs have been conducted from surface and from underground during the<br />
operating mine period from 1988 to 1992. Drill core sizes have included AQ, EXT (both<br />
27 mm diameter); BQ (36.5 mm); NQ (47.6 mm); and HQ (63.5 mm).<br />
Surface drilling has included BQ, NQ and HQ coring, while underground drilling has<br />
included AQ, EXT and BQ coring.<br />
Records are incomplete for the underground drilling and some of the early surface drilling,<br />
but they indicate that underground core was either sampled whole, or split or sawn. It is<br />
assumed that 27 mm core was sampled whole, and it is reported that BQ was either<br />
sampled whole or split / sawn. Surface drill core was either split or sawn prior to sampling.<br />
Coarse grained (“nuggety”) gold mineralization is a feature of the Magino deposit.<br />
Consequently it has been noted by previous mineral resource estimators that samples of<br />
small-diameter core are likely to be unrepresentative, however no recent study has been<br />
undertaken to establish what is an acceptable minimum sample volume.<br />
In the author’s opinion, half-sawn NQ core is the minimum core diameter recommended<br />
for sampling of this deposit type. Apart from HQ coring in 2000, <strong>Gold</strong>en Goose and<br />
<strong>Prodigy</strong> have maintained this standard. Snowden recommends that <strong>Prodigy</strong> continues to<br />
re-drill certain altered zones with NQ, where earlier pre-<strong>Gold</strong>en Goose coring was BQ<br />
diameter or smaller.<br />
11.2 Sample preparation methods and quality control measures<br />
employed before dispatch of samples<br />
11.2.1 2009 - 2010 <strong>Gold</strong>en Goose program<br />
Turcotte et al (2010) describe the process as follows:<br />
The drill core sampling method and approach was established by <strong>Gold</strong>en Goose and<br />
verified by their geologist Gilles Provost, P.Geo. Turcotte et al (2010) found no<br />
indication of anything in the drilling, core handling and sampling procedures, or in the<br />
sampling methods and approach that could have had a negative impact on the<br />
reliability of the reported assay results.<br />
Drill core sections were selected for sampling and assaying based on the presence of<br />
sulphide mineralization or visible gold and quartz veins.<br />
After being examined and described (logged), the core was sampled according to an<br />
established protocol. First, the core of the selected section was cut in half with a core<br />
splitter, with one half put aside for eventual shipment to the laboratory. The second<br />
half of the core was then put back in its place in the core box and a tag bearing the<br />
same number was placed at the beginning of sawed core halves forming the selected<br />
sampled length. The metallic bowls, core splitter and work table were cleaned<br />
thoroughly before proceeding to the next sample. Each bag, after being closed and<br />
tied, was placed with about twenty (20) other samples into a larger bag for shipment.<br />
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<br />
Trans-Provincial Freight Carriers Ltd came to the mine site, picked up the larger bags,<br />
and shipped them to Accurassay Laboratories in Thunder Bay, Ontario.<br />
11.2.2 2010 2011 Kodiak and <strong>Prodigy</strong> program<br />
In the latter half of 2010 Kodiak identified sections of core from the 2006 drill program that<br />
had not been sampled, and undertook the following process to effect the sampling:<br />
Core that is to be sampled is first logged by the geologist and a cut line is drawn on<br />
the core, perpendicular to the dominant structural fabric.<br />
The core is cut by a Kodiak employee using a table-fed circular diamond saw into<br />
halves with one half sent for analysis and the remaining half labelled and retained in<br />
core boxes for future reference. Core cutting is supervised by the geologist logging<br />
core who ensures that a sequence of blanks, duplicates and standards is followed.<br />
Sampling occurs at 1 metre intervals, or less to account for lithological contacts.<br />
Zones of low core recovery are noted, however these are rare due to the competency<br />
of the rock mass.<br />
The half core selected for analysis is always from one side and no regard for<br />
presence of visible gold is made, in order to reduce sampling bias.<br />
The sampled half core is placed into clean, new transparent plastic sample bags with<br />
one pre-printed sample tag as laboratories have their own internal numbering system.<br />
The sample bags are rolled and sealed with staples.<br />
A metal tag is stapled in the core tray along with the meterage represented by the<br />
sample. The sample tag is also printed on the remaining sample card in the booklets<br />
and once all tags have been used the booklets are stored in the core logging facility.<br />
The sealed sample bags are placed in rice sacks in sequence for shipment to the<br />
laboratory. A copy of the sample submittal form is returned to the project<br />
geologist/project manager after being stamped by the receiving laboratory. Samples<br />
are transported by Kodiak personnel or picked up by the laboratories directly from the<br />
project. If a third party transportation company is used the number or rice sacks is<br />
accounted for and sealed with a numbered sealing tie. The number is controlled by<br />
the laboratory to ensure no tampering of the bags has occurred.<br />
The same procedures apply to the 2011 <strong>Prodigy</strong> program<br />
11.2.3 Statement<br />
Drilling programs in 2010 and 2011 were conducted under the supervision of employees<br />
of <strong>Gold</strong>en Goose, Kodiak and <strong>Prodigy</strong>. Employees of these companies undertook<br />
sampling of the core, under the supervision of staff Qualified Persons and this is normal<br />
industry practice.<br />
Gilles Provost, P.Geo. and Quentin Browne, P.Geo, were the Qualified Persons for site<br />
activities in 2010. Tom Pollock P.Geo is the Qualified Person for 2011.<br />
Following transport of half core samples to the analytical laboratory, all sample handling,<br />
reduction, splitting and analysis were conducted by independent registered companies<br />
and their employees.<br />
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11.3 Analytical laboratories<br />
11.3.1 Accurassay Laboratories Ltd<br />
Accurassay Laboratories Ltd is located at 1046 Gorham Street, Thunder Bay, Ontario P7B<br />
5X5. Accurassay’s methods are accredited to ISO 17025 by the Standards Council of<br />
Canada (SCC). Accurassay Laboratories is an independent, privately owned company<br />
with 30 years of experience in the mineral analysis business in Canada.<br />
11.3.2 ALS Chemex<br />
ALS Chemex is a division of ALS Laboratory Group, itself owned by the publically listed<br />
Campbell Brothers Limited company (Australia).<br />
ALS Chemex has a sample preparation facility located at 2090 Riverside Drive, Timmins,<br />
Ontario P4R 0A2. Prepared samples are shipped from Timmins to the ALS Chemex Val<br />
D’Or laboratory for analysis. The Val D’Or laboratory is located at 1324 Rue Turcotte,<br />
Québec J9P 3X6. ALS Chemex laboratories are registered to ISO 9001:2008 certification,<br />
and analytical facilities have received ISO 17025 accreditations for specific laboratory<br />
procedures.<br />
ALS Chemex commenced processing of <strong>Prodigy</strong>’s Magino samples on 21 June 2010.<br />
11.4 Sample splitting and reduction<br />
11.4.1 Accurassay Laboratories Ltd<br />
Turcotte et al (2010) describe the process as follows:<br />
Upon arrival at Accurassay Laboratories, rock samples are entered into the Laboratory<br />
Information Management System (LIMS). Samples are then dried, if necessary, and jaw<br />
crushed to approximately 8 mesh. A 250- to 500-gram subsample is taken and pulverized<br />
to 90% at 150 mesh, and then matted to ensure homogeneity. Silica sand is used to clean<br />
out the pulverizing dishes between each sample to prevent cross-contamination. The<br />
homogenized sample is then sent to the fire assay laboratory or the wet chemistry<br />
laboratory, depending on the analysis required.<br />
11.4.2 ALS Chemex<br />
Upon arrival at the Timmins sample preparation facility, samples are entered into the<br />
LIMS. The average sample weight of split drill core is 2.2 kg. After drying, samples are<br />
crushed using a Terminator jaw crusher such that 70% of material passes 2 mm. Crushed<br />
material is then riffle split and 1 kg is pulverised such that 85% of material passes 75 µm.<br />
An extra 1 kg pulp is created for every 10 th sample, for check analysis.<br />
In the year ending 30 March 2011, ALS Chemex has processed 5,843 drill core samples<br />
from Magino.<br />
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11.5 Analytical procedures<br />
11.5.1 Accurassay Laboratories Ltd<br />
Turcotte et al (2010) describe the process as follows:<br />
For precious metal analysis (gold, platinum, palladium, and/or rhodium), the sample is<br />
mixed with a lead-based flux and fused for one hour and fifteen minutes. A silver solution<br />
is added to each sample prior to fusion, producing a button that contains lead from the<br />
flux, the added silver and any precious metals from the sample. The button is placed in a<br />
cupelling furnace where all the lead is absorbed by the cupel, and a silver bead containing<br />
all the gold, platinum and palladium remains in the cupel. The cupel is then removed from<br />
the furnace and allowed to cool. Once the cupel is sufficiently cooled, the silver bead is<br />
placed in a labelled test tube and digested using aqua regia. The samples are bulked up<br />
with 1.0 ml of distilled de-ionized water and 1.0 ml of 1% digested lanthanum solution.<br />
The samples are allowed to cool before mixing to ensure proper homogeneity in the<br />
solution. Once the samples are settled, they are analyzed for gold, platinum and<br />
palladium using atomic absorption spectroscopy (AAS). The AAS unit is calibrated for<br />
each element using the appropriate ISO 9002 certified standards in an air-acetylene<br />
flame. The AAS results are checked by a technician, forwarded to data entry by means of<br />
electronic transfer, and a certificate produced. The Laboratory Manager checks the data,<br />
validates the certificates, and issues the results in the format requested by the client.<br />
11.5.2 ALS Chemex<br />
<strong>Gold</strong> analysis is by way of fire assay of a 30 g or 50 g pulp sub-sample. All samples are<br />
first subject to procedure AuAA23 which uses AAS. Any sample that returns grades<br />
higher than 10 g/t Au is re-assayed with a gravimetric finish, per procedure AuGRA21.<br />
Details below are sourced from ALS Chemex.<br />
Fire Assay-Gravimetric Procedure for Ore Grade Samples<br />
Gravimetric methods involve the use of balances to weigh the element of interest, either in<br />
its pure elemental form or as a chemical compound. One of the most common gravimetric<br />
determinations is that of gold and silver following a fire Assay Fusion cupellation. The<br />
precious metal bead that remains following cupellation is an alloy of silver and gold.<br />
Weighing this bead will give the total weight of silver and gold. If the bead is then treated<br />
with dilute nitric acid, it is possible to remove the silver quantitatively. The residual mass<br />
consists of pure gold which can then be weighed separately, thus allowing the silver to be<br />
determined by difference. The balances used for this purpose are microbalances capable<br />
of weighing to the nearest microgram (one millionth of a gram). Analysis of Bullion for<br />
gold, silver and base metal content is another common procedure. The classical<br />
technique for determining gold is the fire assay fusion followed by cupellation and a<br />
gravimetric finish (method codes Au-GRA21, Au-GRA22and Au-GRA24).This is still the<br />
preferred procedure for the analysis of high grade ores. There is no upper quantitative<br />
limit applied for these procedures but clients should note that the detection limit is<br />
significantly higher than for procedures that use spectroscopic measurement techniques.<br />
Fire Assay-Atomic Absorption procedures for Low to Medium Grade Ore<br />
Samples<br />
The method involves fire assay collection followed by cupellation, dissolution of the<br />
precious metal prill and a pre-concentration solvent extraction step. The final<br />
determination is by flame AAS, providing a detection limit of 5 ppb.<br />
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11.6 Quality control<br />
11.6.1 2009 - 2010 <strong>Gold</strong>en Goose program<br />
Turcotte et al (2010) describe the process as follows:<br />
A quality control program was present for the <strong>Gold</strong>en Goose 2009-2010 diamond drilling<br />
program on the Magino property. The objectives of the quality control program were to<br />
monitor and document the quality and integrity of the sampling procedure, sample<br />
preparation, and assaying. Using a series of quality control samples, <strong>Gold</strong>en Goose’s<br />
protocol stipulates that the entire sampling, sample preparation and assaying process be<br />
monitored and evaluated for:<br />
the integrity of field sampling and sample shipment by monitoring field blank results<br />
and sample shipment procedures;<br />
possible contamination during sample preparation or the assaying process by<br />
monitoring the results of field blank standards submitted as regular samples, and by<br />
monitoring laboratory analytical blank standard results;<br />
the suitability of crushing/splitting/pulverization sizes by measuring the precision of<br />
coarse and pulp duplicate samples; and<br />
the level of assaying accuracy by using external and internal (laboratory) certified<br />
reference standards and by assaying blind certified reference standards in each batch<br />
of samples.<br />
The laboratory inserted one (1) coarse crush duplicate sample split, selected at random,<br />
into each 10-sample sub-batch. Three (3) certified reference standards (CRMs) with<br />
different grades, all from Rocklabs in New Zealand, were used for quality control. One (1)<br />
field blank standard was prepared using “barren” rock from the project site, or other<br />
potentially “barren” material. One (1) of the three CRMs, or one (1) blank, was included in<br />
each batch of fifty (50) samples shipped by the <strong>Gold</strong>en Goose geologist.<br />
11.6.2 Accurassay Laboratories Ltd<br />
Turcotte et al (2010) describe the process as follows:<br />
Accurassay Laboratories employs an internal quality control system that tracks certified reference materials and inhouse<br />
quality assurance standards. Accurassay Laboratories uses a combination of reference materials, including<br />
reference materials purchased from CANMET, standards created in-house by Accurassay Laboratories (and tested<br />
by round robin with laboratories across Canada), and ISO-certified calibration standards purchased from suppliers.<br />
Should any of the standards fall outside the warning limits (+/- 2SD), reassays are performed on 10% of the<br />
samples analyzed in the same batch, and the reassay values are compared with the original values. If the values from<br />
the reassays match the original assays, the data is certified; if they do not match, the entire batch is reassayed.<br />
Should any of the standards fall outside the control limit (+/- 3SD), all the assay values are rejected and all<br />
samples in that batch are reassayed.<br />
11.6.3 2010 Kodiak sampling program<br />
Until September 2010, the protocol described in Section 13.5.1 continued. Since that time<br />
each batch of 20 samples included one (1) coarse reject, one (1) pulp duplicate, one (1)<br />
certified reference standard, and one (1) coarse blank.<br />
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Should any of the standards fall outside the warning limits (+/- 2SD), reassays are<br />
performed on 10 of the samples analyzed in the same batch around the position of the<br />
standard, and the reassay values are compared with the original values. If the values<br />
from the reassays match the original assays, the data is certified; if they do not match, the<br />
entire batch is reassayed. Should any of the standards fall outside the control limit (+/-<br />
3SD), all the assay values are rejected and all samples in that batch are reassayed.<br />
11.7 <strong>Prodigy</strong> QAQC for 2011<br />
<strong>Prodigy</strong> collates and monitors all quality control data through Maxwell Geosciences Data<br />
Shed and QAQCReporter softwares on a batch basis.<br />
Results for blank and standard assays are presented below. <strong>Prodigy</strong> has advised the<br />
author that reassays have been requested for instances where certified reference<br />
standard assays fall outside of the control lines (blue).<br />
Figure 11.1<br />
<strong>Gold</strong> assays for coarse blank inserted by <strong>Prodigy</strong><br />
Figure 11.2<br />
<strong>Gold</strong> assays for standard CDN-BL-7<br />
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Figure 11.3<br />
<strong>Gold</strong> assays for standard CDN-GS-1F<br />
Figure 11.4<br />
<strong>Gold</strong> assays for standard CDN-GS-2E<br />
Figure 11.5<br />
<strong>Gold</strong> assays for standard CDN-GS-30B<br />
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Figure 11.6<br />
<strong>Gold</strong> assays for standard CDN-GS-2G<br />
Figure 11.7<br />
<strong>Gold</strong> assays for standard CDN-GS-1G<br />
Figure 11.8<br />
<strong>Gold</strong> assays for standard CDN-GS-1P5C<br />
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Figure 11.9<br />
<strong>Gold</strong> assays for standard CDN-GS-2E<br />
Figure 11.10<br />
<strong>Gold</strong> assays for standard CDN-GS-2G<br />
Figure 11.11<br />
<strong>Gold</strong> assays for standard CDN-GS-3G<br />
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Figure 11.12<br />
<strong>Gold</strong> assays for standard CDN-GS-4B<br />
Figure 11.13<br />
<strong>Gold</strong> assays for standard CDN-GS-7B<br />
Figure 11.14<br />
<strong>Gold</strong> assays for standard CDN-GS-P2<br />
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Figure 11.15<br />
<strong>Gold</strong> assays for standard CDN-GS-P4A<br />
Assays are performed on an extra split sample to monitor precision. Results for 30<br />
“repeats” show that precision is within acceptable limits for the grade range from 0 to 10<br />
g/t Au for 70% of samples tested. Thus far there are insufficient results for the grade<br />
range from 10 to 50 g/t Au.<br />
11.8 Specific gravity determinations<br />
On 11 April 2008, <strong>Gold</strong>en Goose received 12 specific gravity analysis determinations from<br />
Accurassay Labs of Thunder Bay, Ontario, The samples were analysed by pycnometer<br />
using pulverised core.<br />
During 2011 <strong>Prodigy</strong> has undertaken 2,268 specific gravity determinations using the<br />
immersion method at its core shed in Dubreuilville. Solid full core samples between<br />
approximately 10 cm and 15 cm in length were taken at approximately 3 metre intervals<br />
regardless of composition. Samples were weighed using a RADWAG model PS 1200/C/2<br />
digital balance. Samples were first weighed dry and then weighed in distilled de-ionised<br />
water by suspension ensuring the entire sample was submerged (Simpson 2011).<br />
As part of the QAQC program, <strong>Prodigy</strong> selected 49 samples from its dataset for specific<br />
gravity analysis checks at ALS Chemex. The check determinations indicated that<br />
<strong>Prodigy</strong>’s determinations were acceptable.<br />
11.9 Author’s opinion on 2011 sample preparation, security and<br />
analytical procedures<br />
Procedures undertaken in 2011 have been under the supervision and security of the<br />
issuer’s Qualified Persons, as far as drill core sampling prior to dispatch. Laboratory<br />
sample reduction and analytical procedures have been conducted by independent<br />
accredited companies with acceptable practices.<br />
<strong>Prodigy</strong> ensures quality control is monitored through the insertion of blanks, certified<br />
reference materials and duplicates for the on-going 2011 drill campaign.<br />
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12 Data verification<br />
Since the introduction of National Instrument 43-101 in 2000, the Magino drilling and<br />
sampling database has been re-compiled from first principles, updated as necessary and<br />
reported as verified by independent Qualified Persons on several occasions, as follows:<br />
2000 (Reddick, 2001b)<br />
2002 (Reddick, 2002)<br />
2004 (Burns & Reddick, 2004)<br />
2008 (Turcotte & Pelletier, 2008)<br />
2009 (Turcotte & Pelletier, 2009)<br />
The current drilling and sampling database is an update of the 2008 recompilation by<br />
Turcotte & Pelletier, with the addition of data by <strong>Prodigy</strong>. In the 2008 exercise, Turcotte &<br />
Pelletier conducted the following (excerpted from Turcotte et al (2010):<br />
The purpose of an earlier mine site visit by author Carl Pelletier in December 2007 was to<br />
conduct a general review of the site. The visit was led by Gilles Provost of <strong>Gold</strong>en Goose,<br />
field geologist for the Magino Project. Carl Pelletier reviewed some of the mineralized<br />
zones from five (5) <strong>Gold</strong>en Goose diamond drillholes. Sample tags were still present in<br />
the core boxes and it was possible to validate sample numbers and gold grades for each<br />
of the samples in the mineralized zones. Not all of the diamond drill core was stored on<br />
the mine site, and some holes were therefore not available for verification. Geological<br />
logging was generally done using the standard logging codes for the Magino mine (i.e.,<br />
the geological legend). These codes are amenable to management in a computer<br />
database.<br />
The result was coded lithological and mineralogical descriptors and brief descriptive<br />
columns. Unfortunately, the mine’s geological legend did not provide any codes for<br />
alteration, structural elements or mineralization, and the resulting level of detail is barely<br />
adequate for basic interpretation, especially in logs before 2000. Structural geology<br />
logging was also inadequate prior to 2000 (e.g., shears are observed but their orientations<br />
are consistently missing), but descriptions by geologists from 2000 to 2007 are more<br />
detailed. Many of the original paper logs and/or copies of logs are present at the Magino<br />
mine site. Paper logs for all surface and underground diamond drillholes from 1981 to<br />
2010 were available for consultation. Only partial diamond drillhole information is<br />
available before 1981 (typically location and assays). No geotechnical logging was<br />
performed, therefore none of the diamond drillhole logs have records of fracture frequency<br />
or RQD (Rock Quality Designation).<br />
The data supplied by <strong>Gold</strong>en Goose for the Magino mine were in the form of a GeoticLog<br />
and Gemcom software database. The Gemcom software database came from the<br />
<strong>Technic</strong>al Report published by Snowden Mining Industry Consultants in 2004 (Burns and<br />
Reddick, 2004).<br />
Snowden used this database to produce resource estimation work in compliance with<br />
National Instrument (NI) 43-101. The GeoticLog software database only contained data<br />
for <strong>Gold</strong>en Goose’s last diamond drillholes carried out in 2006-2010. InnovExplo<br />
transferred the GeoticLog software data into a Gemcom software database, and validated<br />
and corrected the data.<br />
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InnovExplo carefully reviewed the database before generating cross-sections and carrying<br />
out the Mineral Resource Estimate. The integrity of the database was checked by Bruno<br />
Turcotte and Pierre Gauthier of InnovExplo. All surface and underground diamond<br />
drillholes were retained. The drilling database consists of 1,286 diamond drillholes<br />
totalling 124,118 m. Only the 2006 to 2010 diamond drillhole casings were surveyed in<br />
the field using a Sokkia GPS.<br />
Measurement precision and position accuracies were plus or minus five centimetres (±5<br />
cm). Casings of earlier diamond drillholes were surveyed with traditional surveying<br />
equipment using the mine grid or a small GPS. Coordinates for pre-2006 surface diamond<br />
drillholes and all underground diamond drillholes are preserved as handwritten entries on<br />
summary log sheets. The data from location and orientation surveys for diamond<br />
drillholes from 1972 to 2007 were checked by Pierre Gauthier (InnovExplo) using available<br />
summary log sheets and old crosssections. Many mistakes were found and corrected by<br />
InnovExplo personnel. Generally, both tropari and acid tests were done for surface holes,<br />
but only acid tests were performed for underground holes. All drilling data are available as<br />
a computer database (Excel and Gemcom software).<br />
InnovExplo went to the Magino mine site to recover all historical information from past<br />
mining operations. Most of the information was available on paper, such as longitudinal<br />
sections, crosssections and level plans showing geological mapping and channel<br />
sampling. InnovExplo also recovered information from old back-up (Bernouilly) disks<br />
containing data from a 1991 survey of the ramp, drifts and stopes. More recent<br />
information from 1991 to 1993 was not found.<br />
All assays from the drilling database were verified by Bruno Turcotte and Pierre Gauthier<br />
of InnovExplo. In all, they reviewed 136,953 samples with assay certificates and/or log<br />
sheets. Unfortunately, there are no original assay certificates remaining for a large<br />
number of diamond drillholes, specifically between 1972 and 1991, and as such, the gold<br />
assay results are preserved only as handwritten entries on log sheets. A lot of missing<br />
assay data was found on log sheets and old drilling reports on the Ministry of Northern<br />
Development and Mines website (http://www.mndm.gov.on.ca/mines/default_e.asp).<br />
InnovExplo calculated an average gold value (g/t Au) for each sample with one or more reassays.<br />
InnovExplo used these average gold values when calculating the Mineral<br />
Resource Estimate. All assays from the drilling database are now available in a computer<br />
database (Excel and Gemcom software).<br />
InnovExplo geologists noticed that the mine grid on the old set of cross-sections was not<br />
oriented for optimum geological interpretation. Using the information on geological maps<br />
from several levels, they adjusted the direction to create a new grid and generate another<br />
set of cross-sections, which were used to produce a new geological interpretation.<br />
InnovExplo oriented these cross-sections to be as perpendicular as possible to the<br />
auriferous structures. The resulting trend for the set is N075°, with each cross-section<br />
oriented at N345°.<br />
Channel samples were taken from each development for grade control purposes. The<br />
channel sampling in drifts was mapped out on a mapping sheet. Sample locations were<br />
drawn on the sheet (scale 1’’ = 20’) with the length (feet) and gold grade (oz/t) indicated.<br />
There were no geological descriptions for the samples, and the channel sampling data<br />
were not provided in a computer database. In addition, data were not available for all<br />
levels, sub-levels and raises, although the majority of the samples were present on the<br />
mapping sheet.<br />
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The Gemcom software database containing old mine working data was obtained from the<br />
<strong>Technic</strong>al Report published by Snowden Mining Industry Consultants in 2004 (Burns and<br />
Reddick, 2004). This database was reviewed by Serge Morin of InnovExplo before<br />
generating the new cross-sections and carrying out the Mineral Resource Estimate.<br />
Missing data were found on old plans stored at the Magino mine site. Length data were<br />
missing for some drifts and sublevels, raises and stopes, as were numerous assay results.<br />
When missing information was found, it was added to the Gemcom software database.<br />
Unfortunately, InnovExplo was unable to find the survey data for many of the raises.<br />
Consequently, the information for many raises is not present in the Gemcom software<br />
database.<br />
Lastly, InnovExplo discovered a survey error on one back plug at the start of the ramp.<br />
This error displaces the old mine workings by about one to five m (1-5 m) in plan and<br />
elevation. Consequently, the current survey coordinates for underground drillholes are not<br />
accurate.<br />
In December 2010 the author restored the 2004 Snowden Gemcom database that is<br />
archived in Snowden’s office in Vancouver, and conducted cross-checks with the 2008<br />
InnovExplo Gemcom database and finally with the Gemcom database supplied by<br />
<strong>Prodigy</strong>.<br />
In September 2011 <strong>Prodigy</strong> provided Snowden with an updated Gemcom database, for<br />
the November Resource Estimate update. Internal validation and integrity checks were<br />
conducted on the database submitted to Snowden by <strong>Prodigy</strong>.<br />
12.1 Site verification<br />
In February and August 2011 the author visited site and inspected drill core laid out for the<br />
2011 drilling program currently underway for <strong>Prodigy</strong>. The following items were verified:<br />
Locations of drill rigs and operation, however operations were suspended due to a<br />
driller’s accident.<br />
Cross-check of <strong>Prodigy</strong> drill logs with drill core.<br />
Core handling, storage and security.<br />
Core logging process, alignment, recovery, mark-up and core sawing, sampling.<br />
Insertion of blanks, certified reference material.<br />
Core farm at the mine site where <strong>Prodigy</strong> are conducting an inventory, for subsequent<br />
re-sampling consideration.<br />
Density measurements using water displacement weighing method.<br />
Cross-check of low grade and high grade assays against alteration and visible gold in<br />
drill core.<br />
Review of drill logs and assay sheets at the mine office.<br />
The author has not undertaken a complete data verification study, however sufficient<br />
checks have been completed to satisfy the author that the Magino drilling and sampling<br />
data is suitable to use in estimating a Mineral Resource to support a preliminary economic<br />
assessment.<br />
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13 Mineral processing and metallurgical testing<br />
Data available for process design is sourced from metallurgical data from the historical<br />
work by Lakefield Research (Lakefield) in 1997 as part of the Prefeasibility Study for a 2.6<br />
Mtpa open pit mine and leach plant prepared by BLM Bharti Engineering Ltd. for <strong>Gold</strong>en<br />
Goose in 1997, and Kappes Cassiday & Associates (KCA) in 1999. The samples tested in<br />
Lakefield Research were taken from drill core and surface bulk samples by BLM Bharti<br />
Engineering as representative for future operations (BLM Bharti Engineering Limited,<br />
1997).<br />
In September 2011, <strong>Prodigy</strong> reported the results of metallurgical testing by G & T<br />
Metallurgical Services Ltd (“G & T”) of twenty samples from cut and halved drill core.<br />
13.1 Historic test data and reports<br />
In 1997, Lakefield conducted ore hardness, gravity concentration, column leach and bottle<br />
roll tests on a core and a surface bulk sample. The results are contained in the report, “An<br />
Investigation of the Recovery of <strong>Gold</strong> from Magino Project Samples”.<br />
In 1999, KCA conducted further column leach and bottle roll tests on a mafic volcanic<br />
sample and a granodiorite sample. The results are reported in (Kappes, Cassiday and<br />
Associates, 1999).<br />
The Lakefield work showed low levels of gravity recoverable gold. Both Lakefield and<br />
KCA reported low recoveries from column tests, hence the ore is not amenable to heap<br />
leaching but high recoveries from bottle roll tests, indicating that grind-CIL is the preferred<br />
process.<br />
13.1.1 Grindability and CIL Efficiency<br />
Lakefield conducted one standard Bond ball mill work index test on each of the core and<br />
bulk sample. The results in Table 13.1 showed similar and relatively low ore hardness for<br />
both samples, indicating relatively low grinding energy requirements.<br />
Table 13.1<br />
Grindability data<br />
Imperial<br />
Bond ball work index<br />
Metric<br />
Core sample 11.5 12.6<br />
Bulk samples 11.7 12.8<br />
The results of the direct cyanidation bottle roll tests are shown in Table 13.2 (Lakefield)<br />
and Table 13.3 (KCA).<br />
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Table 13.2<br />
Core<br />
sample<br />
Bulk<br />
sample<br />
%-200<br />
mesh<br />
Bottle leach results<br />
Reagents, kg/t Calc. Head Residue g/t % Au Extraction<br />
NaCN CaO g/t Au Au 24 h 48 h<br />
84 0.30 0.48 1.34 0.03 85.0 97.8<br />
72 0.13 0.46 1.03 0.08 75.0 92.2<br />
60 0.13 0.50 0.95 0.07 71.0 92.6<br />
84 0.37 0.57 0.75 0.06 83.0 92.0<br />
72 0.15 0.48 0.90 0.04 81.0 95.6<br />
59 0.14 0.51 0.76 0.05 77.0 93.4<br />
(Lakefield)<br />
Table 13.3<br />
Bottle leach results – samples at minus 150 microns<br />
Reagents, kg/t Calc. Head Residue % Au Extraction<br />
NaCN CaO g/t Au g/t Au 24 h 48 h<br />
Mafic volcanics 0.49 0.76 0.73 0.05 91.9 93.2<br />
Grano-diorite 0.45 0.61 1.57 0.05 96.1 96.8<br />
(KCA)<br />
13.2 September 2011 testwork<br />
Twenty samples were submitted to G & T and ranged in feed grade from 0.07 g/t Au to<br />
5.99 g/t Au. The testing intentionally focused on lower grade material as most previous<br />
metallurgical testing was completed on higher grade samples.<br />
A total of twenty samples were subjected to the testing program; for the ten samples with<br />
feed grades greater than 0.35 g/t Au (cut off grade for the gold resource), combined<br />
gravity and cyanide gold recovery was 95% (range: 86 to 99%). Average gold recovery<br />
for all twenty samples in the test program was 92%. For the ten samples with grades less<br />
than cut off, average recovery was 89%, ranging from 63 to 99%.<br />
The twenty samples averaged about 15 kilograms in weight and were composited from cut<br />
and halved drill core. A total of 313 kilograms of core was used in the study. The samples<br />
were ground to 80 % passing 75 microns and then subject to industry standard gravity<br />
concentration. Average gold recovery in the gravity circuit was 33%. The tailings from the<br />
gravity concentration circuit were then subjected to a 48 hour cyanide bottle roll test at a<br />
targeted cyanide concentration of 250 ppm. Average cyanide consumption was 0.02<br />
kilogram/tonne (<strong>Prodigy</strong> News Release 15 September 2011).<br />
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14 Mineral resource estimates<br />
14.1 Summary<br />
Mineral Resource estimates for the Magino property are reported in categories of<br />
Indicated and Inferred, in accordance with the CIM Definition Standards - For Mineral<br />
Resources and Mineral Reserves (CIM Code), as follows:<br />
Table 14.1 Indicated Mineral Resource estimate – November 2011<br />
Category<br />
CIM Code<br />
Reporting<br />
cut-off<br />
grade g/t<br />
Au<br />
Density<br />
Tonnes<br />
X 1,000<br />
Grade g/t<br />
Au<br />
<strong>Gold</strong><br />
grams<br />
X 1,000<br />
<strong>Gold</strong><br />
ounces<br />
X 1,000<br />
Indicated 0.35 2.72 67,555 1.00 67,690.5 2,176.3<br />
Table 14.2 Inferred Mineral Resource estimate – November 2011<br />
Category<br />
CIM Code<br />
Reporting<br />
cut-off<br />
grade g/t<br />
Au<br />
Density<br />
Tonnes<br />
X 1,000<br />
Grade g/t<br />
Au<br />
<strong>Gold</strong><br />
grams<br />
X 1,000<br />
<strong>Gold</strong><br />
ounces<br />
X 1,000<br />
Inferred 0.35 2.72 54,242 0.99 53,537.3 1,721.2<br />
In the above Mineral Resource tables there may be inconsistences due to rounding.<br />
Estimates are rounded since the figures are not precise calculations.<br />
There are no Mineral Reserves reported in this <strong>Technic</strong>al Report. Mineral Resources are<br />
not Mineral Reserves and do not have demonstrated economic viability. There is no<br />
certainty that all or any part of the Mineral Resource will be converted into Mineral<br />
Reserve.<br />
14.2 Disclosure<br />
Mineral Resources reported in Section 14 were prepared by the W. A. Dzick, Principal<br />
Consultant, an employee of Snowden Mining Industry Consultants <strong>Inc</strong>. under the<br />
supervision of the author who is an employee of Snowden Mining Industry Consultants<br />
<strong>Inc</strong>.<br />
14.2.1 Known issues that materially affect mineral resources<br />
Snowden is not aware of any permitting, legal, title, taxation, socio-economic, and<br />
marketing or political issues that could materially affect the mineral resource estimates.<br />
There are a number of items that will require addressing by <strong>Prodigy</strong> in order to update<br />
mineral resource estimates for use in feasibility studies.<br />
These are discussed below:<br />
Lithological records, interpretation of alteration zones and vein structures<br />
The current database has incomplete and inconsistent records for lithology and alteration.<br />
A revised 3D interpretation of quartz-sericite-pyrite alteration zones and mineralised veins<br />
will be required for future mineral resource estimates.<br />
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The identification of seventeen (17) structural zones has allowed the deposit to be subdomained<br />
for local estimation purposes.<br />
Density measurements<br />
A tonnage factor of 2.72 gm/cc for granodiorite is used in reporting of Mineral Resource<br />
estimates. The February 2011 tonnage factor of 2.82 gm/cc used in the February 2011<br />
Resource Estimate was based on laboratory density determinations for 10 samples<br />
(Turcotte, B., and Pelletier, C., 2009). <strong>Prodigy</strong> have since made approximately 700<br />
additional determinations at site that indicate a lower tonnage factor of 2.72 for the Webb<br />
Lake stock, however the determinations require confirmation under laboratory conditions<br />
(Table 14.3).<br />
Table 14.3<br />
<strong>Prodigy</strong> density data<br />
Lithology # Samples Average SG Value<br />
Mafic meta-volcanics 68 2.81<br />
Intermediate meta-volcanics 34 2.78<br />
Chemical meta-sediments 23 3.03<br />
Synvolcanic Felsic to<br />
Intermediate Intrusive<br />
Felsic to Intermediate<br />
Intrusive<br />
513 2.71<br />
5 2.71<br />
Mafic Intrusive 12 2.81<br />
Diabase Dyke 60 3.01<br />
Quartz Vein 1 2.64<br />
Historical data<br />
There are uncertainties in respect of pre-<strong>Gold</strong>en Goose historical data that remain<br />
unverifiable (Section 6 History). The current estimates have not incorporated any of the<br />
sample grades from underground channel and core drilling of less than 50 metres, as<br />
these sample groups have a potential bias. The potential for bias exists because<br />
descriptions of mine laboratory sample preparation and quality control methods in the<br />
period 1988 to 1992 do not conform to current industry standards and the small diameter<br />
core samples obtained from underground drilling would appear to be unrepresentative as<br />
well.<br />
A comparison was made between underground drillholes less than 50 metres total length<br />
and greater than 50 metres total length and surface drillhole assay data after compositing<br />
to 5 m intervals (Figure 14.1) and (Figure 14.2) The data was declustered within a region<br />
measuring 650 mE by 600 mN, and occurring within 295 m and 165 m relative elevations.<br />
The study indicated that the less than 50 metre total length underground drilled<br />
composites were approximately 30% higher in grade than the surface drilled composites<br />
and the greater than 50 metre total length underground drilled composites exhibited much<br />
less potential bias (Dzick 2011).<br />
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Figure 14.1<br />
Comparison of declustered composites – surface drilling vs underground<br />
drilling less than 50 metres total length<br />
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Figure 14.2<br />
Comparison of declustered composites – surface drilling vs underground<br />
drilling greater than 50 metres total length<br />
The lithological information from underground core drill logs, however is relevant and was<br />
used for geological interpretation.<br />
Many historic (predating <strong>Gold</strong>en Goose) surface drillholes with adequate core diameter<br />
remain in the database and are incorporated into the Mineral Resource estimates.<br />
Intervals from these holes have been subjected to re-sampling and assaying, however this<br />
task is incomplete. <strong>Prodigy</strong> has embarked on an in-fill drilling and sampling program and it<br />
is expected that much of the historic assay information will be superseded for use in<br />
subsequent feasibility studies.<br />
Prior resource estimates for Magino have included a component of the Measured<br />
category. No Measured resources are currently categorised by the author to reflect the<br />
uncertainties described above.<br />
14.3 Assumptions, methods and parameters<br />
The estimates were prepared in the following steps:<br />
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Data validation. This is described in Section 12 Data Verification.<br />
Data preparation – this and subsequent steps are summarised below.<br />
Exploratory data analysis of gold data.<br />
Geological interpretation and modelling.<br />
Establishment of block models.<br />
Compositing of assay intervals.<br />
Consideration of grade outliers.<br />
Variogram analysis.<br />
Derivation of kriging plan.<br />
Grade interpolation of gold values.<br />
Deduction for prior mined volume.<br />
Classification of estimates with respect to CIM Definition Standards.<br />
Resource tabulation and resource reporting.<br />
14.3.1 Data provided<br />
<strong>Prodigy</strong> has focused its geological and resource evaluation program on assessment of the<br />
wide zones of quartz-pyrite-sericite altered granodiorite that host the former underground<br />
mine workings at Magino. Throughout 2011 <strong>Prodigy</strong> has re-logged existing core, taken<br />
samples of previously intact core to provide fuller coverage of sampling throughout the<br />
alteration zones, and updated the drillhole and sample database accordingly to ensure<br />
consistency.<br />
For the purpose of this report, specific areas of the deposit were identified as uniquely<br />
similar in alteration, mineralization, structure as well as level of dissemination vs. narrow<br />
high grade mineralization. Seventeen (17) individual 3D solid domains were created<br />
utilizing lithology, sericite alteration, foliation information and assay information obtained<br />
from the 2011 drill campaign. <strong>Prodigy</strong> geologists believe these interpretations are<br />
accurately identifying areas in the deposit which contain similar style mineralization, in<br />
particular the NE zone, The Central zone and the Southwest zone. Zones were created in<br />
Gemcom drawing rings in 25 m spaced cross sections and then connecting those rings to<br />
create 3D solids. The zones were more readily identified where more information was<br />
available from the current drilling campaign. Extension of these zones was carried across<br />
historic drilling information by utilizing grade to identify continuation of the interpreted<br />
zone. Detailed alteration modelling was not possible due to the lack of digitized data from<br />
historic drilling.<br />
The database used by the author contains 512 surface diamond drillholes (for a total of<br />
103,491 m; average length 202 m) and 980 underground diamond drillholes (for a total of<br />
60,345 m; average length 62 m) (Figure 14.3 and Figure 14.4).<br />
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Ninety-four surface drillholes were completed in the period from 1997 to 2010 and<br />
comprise HQ and NQ diameter core. All underground drillholes were completed in the<br />
period 1984 to 1991 and are dominated by AQ diameter core with some BQ diameter<br />
core, clearly clustered around the underground workings and, in some cases subsequently<br />
stoped out. Since the sample volumes of the short underground drill cores are markedly<br />
less than the surface and longer underground drill cores, the author elected to use only<br />
the assays from the surface and longer underground drillholes in the grade estimates.<br />
The underground diamond drillholes retained for the resource estimates comprised 484<br />
drillholes for a total of 48,896 m, average length 100 m. Assay information from all the<br />
underground drill cores however was used to develop the geological interpretation through<br />
a categorical indicator method.<br />
<strong>Prodigy</strong> also provided geological interpretations in the form of wireframes for the major<br />
rock units at Magino, as follows:<br />
Overburden<br />
Webb Lake granodiorite stock, and internal synvolcanic felsic and intermediate sills<br />
Late stage diabase dyke<br />
Wireframes for the surface topography and underground mining areas were also provided.<br />
Figure 14.3<br />
Distribution of underground drillholes<br />
N<br />
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Figure 14.4<br />
Distribution of surface drillholes<br />
14.3.2 Geological interpretation and modelling<br />
The area of interest covers 1,350 m parallel to the Goudreau deformation zone. The<br />
075 degree trending Webb Lake grandiorite stock and the alteration zones that aggregate<br />
up to 300 m width, dip steeply to depths of up to 600 m. At Magino the Webb Lake stock<br />
is covered by up to 30 m thickness of fluvio-glacial material. The felsic and mafic volcanic<br />
country rock surrounding the stock does contain examples of low grade mineralization<br />
encountered by drilling, however the main focus remains the broad low-grade alteration<br />
zones. A late stage diabase dyke transects the stock.<br />
14.3.3 Compositing of assay intervals<br />
The dominant sample interval is 1 metre. A 5 metre composite length interval was applied<br />
for compositing underground and surface cored drillholes used for resource estimation.<br />
Unsampled intervals within the mineralized zones were assigned a zero grade during the<br />
compositing process.<br />
Basic statistics for gold composites are presented in Table 14.4 and Figure 14.5. Basic<br />
statistics for the composites located within the mineralized zones as modelled in Section<br />
14.3.3 are presented in Table 14.5 and Figure 14.6.<br />
This sub-set was subsequently used for grade estimation.<br />
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Table 14.4<br />
Statistics for all 5 m composites<br />
Number of<br />
samples<br />
Min<br />
g/t<br />
Au<br />
Max g/t<br />
Au<br />
Mean<br />
g/t<br />
Au<br />
CV<br />
28,342 0.0 355.83 0.74 4.24<br />
Distribution<br />
g/t Au<br />
10% 0.02<br />
20% 0.06<br />
30% 0.10<br />
40% 0.16<br />
50% 0.23<br />
60% 0.34<br />
70% 0.50<br />
80% 0.77<br />
90% 1.45<br />
95% 2.73<br />
97.5% 4.93<br />
99% 10.11<br />
Figure 14.5<br />
Log histogram of all 5 m composites<br />
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Table 14.5<br />
Statistics for mineralized composites<br />
Number of<br />
samples<br />
Min<br />
g/t<br />
Au<br />
Max g/t<br />
Au<br />
Mean<br />
g/t<br />
Au<br />
CV<br />
23,900 0.0 355.8 0.82 4.03<br />
Distribution<br />
g/t Au<br />
10% 0.04<br />
20% 0.09<br />
30% 0.15<br />
40% 0.20<br />
50% 0.29<br />
60% 0.39<br />
70% 0.57<br />
80% 0.87<br />
90% 1.65<br />
95% 3.10<br />
97.5% 5.60<br />
99% 11.47<br />
Figure 14.6<br />
Log histogram of 5 m gold composites for mineralized zones<br />
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14.3.4 Consideration of grade outliers and estimation method<br />
Assay populations from gold deposits are generally skewed and contain high grade<br />
outliers that can introduce bias to mineral resource estimates. Estimation practice is to<br />
use grade caps or top cuts when using estimation methods such as inverse distance<br />
weighting or ordinary kriging.<br />
In the Magino case, the zones of mineralization are characterized by mixing of background<br />
low grade disseminated regions and higher grade vein styles (Figure 14.7). The author<br />
elected to use a distance grade capping strategy to address the mixed grade populations<br />
and grade outliers.<br />
The impact of high gold grade outliers was controlled by using restricted search<br />
dimensions; a combination of “sample per hole” restrictions; octant search and maximum<br />
distance extrapolation restrictions for grades above 22 g/t Au. Grades were not capped<br />
further.<br />
Figure 14.7<br />
Log probability plot indicating mixed populations<br />
14.3.5 Variogram analysis<br />
Grade continuity across each structural domain was investigated using variogram analysis<br />
in Snowden’s Supervisor software. Experimental variograms were modelled for each of<br />
the 17 structural domains and the granodiorite stock. For the few domains that lacked<br />
sample density for meaningful variography the granodiorite results were used. The<br />
spherical model parameters that were fitted to the variograms are provided in Table 14.6.<br />
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Table 14.6<br />
Variography by domain<br />
Domain<br />
Component<br />
– increment<br />
Angle 1<br />
X<br />
rotation<br />
Angle 2<br />
Y<br />
rotation<br />
Angle 3<br />
Z<br />
rotation<br />
Range<br />
1 (m)<br />
Range<br />
2 (m)<br />
Range<br />
3 (m)<br />
C0 – 0.66<br />
- - -<br />
llsh1<br />
C1 – 0.32 26.5 -17 -169.5 80 100 50<br />
C2 – 0.03 300 300 100<br />
C0 – 0.66<br />
- - -<br />
llsh2<br />
C1 – 0.32 26.5 -17 -169.5 80 100 50<br />
C2 – 0.03 300 300 100<br />
C0 – 0.69<br />
- - -<br />
bend<br />
C1 – 0.29 -30 0 114 21.5 14.5 22.5<br />
C2 – 0.02 114 151 155<br />
C0 – 0.42<br />
- - -<br />
c1<br />
C1 – 0.44 0 90 -90 20 18 16<br />
C2 – 0.13 183 480 187<br />
C0 – 0.85<br />
- - -<br />
c2<br />
C1 – 0.14 39.5 22.5 134 19.5 30 31<br />
C2 – 0.01 82 83.5 53<br />
C0 – 0.84<br />
- - -<br />
n<br />
C1 – 0.10 80 -44 -104 80.5 22.5 15<br />
C2 – 0.06 126.5 115.5 233<br />
C0 – 0.84<br />
- - -<br />
n1<br />
C1 – 0.10 80 -44 -104 81 23 15<br />
C2 – 0.06 127 116 233<br />
C0 – 0.81<br />
- - -<br />
nc<br />
C1 – 0.14 10 -14 69 33 23 36<br />
C2 – 0.04 250 187 298<br />
C0 – 0.66<br />
- - -<br />
nc1<br />
C1 – 0.32 26.5 -17 -169.5 80 100 50<br />
C2 – 0.03 300 300 100<br />
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Domain<br />
Component<br />
– increment<br />
Angle 1<br />
X<br />
rotation<br />
Angle 2<br />
Y<br />
rotation<br />
Angle 3<br />
Z<br />
rotation<br />
Range<br />
1 (m)<br />
Range<br />
2 (m)<br />
Range<br />
3 (m)<br />
C0 – 0.66<br />
- - -<br />
nc2<br />
C1 – 0.32 26.5 -17 -169.5 80 100 50<br />
C2 – 0.03 300 300 100<br />
C0 – 0.66<br />
- - -<br />
ne<br />
C1 – 0.26 59.5 -19 -106 31 73.5 24<br />
C2 – 0.08 146 250 157<br />
C0 – 0.66<br />
- - -<br />
rich<br />
C1 – 0.32 26.5 -17 -169.5 80 100 50<br />
C2 – 0.03 300 300 100<br />
C0 – 0.42<br />
- - -<br />
se<br />
C1 – 0.53 60 -5 19 12.5 6.5 17.5<br />
C2 – 0.05 203 34 158<br />
C0 – 0.78<br />
- - -<br />
sw<br />
C1 – 0.19 174 26 24 42.5 54 35.5<br />
C2 – 0.04 488.5 278.5 239.5<br />
C0 – 0.66<br />
- - -<br />
sw1<br />
C1 – 0.32 26.5 -17 -169.5 80 100 50<br />
C2 – 0.03 300 300 100<br />
C0 – 0.73<br />
- - -<br />
sw2<br />
C1 – 0.24 155 -10 -2 14.5 20 16<br />
C2 – 0.03 83 86.5 203<br />
C0 – 0.36<br />
- - -<br />
sw3<br />
C1 – 0.49 357 -13 59 7 8 8<br />
C2 – 0.15 163.5 71.5 198.5<br />
14.3.6 Establishment of block models<br />
A Vulcan bmf Project block model with cell dimensions of 10m (X) 10m (Y) 5m (Z) was<br />
coded to reflect the surface topography, base of overburden, Webb Lake granodiorite<br />
contacts, late stage diabase dyke, and the 17 domain solids.<br />
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14.3.7 Grade interpolation parameters<br />
<strong>Gold</strong> grades were interpolated from 5m length-weighted un-cut composites into the<br />
domain solids by ordinary kriging, using parameters established from the variographic<br />
analyses (Table 14.6).<br />
The interpolation was controlled by:<br />
Minimum / maximum numbers of composites: set to 3 / 20 per block<br />
Discretisation: 2 x 2 x 1<br />
Octant search type<br />
Maximum samples per octant: 4<br />
Minimum number of octants: 2<br />
Maximum number of composites per hole: 2<br />
High yield limit threshold value: 22 g/t Au<br />
High yield limit ellipse: 60 m x 12.5 m x 35 m<br />
Search ellipse: 170 m x 25 m x 120 m<br />
14.3.8 Density assignment<br />
Density factor of 2.72 was assigned to all blocks, based upon approximately 2,300 specific<br />
gravity determinations.<br />
14.3.9 Prior mining<br />
A 3D wireframe model of the underground development and stopes was stored as percent<br />
volumes in the block model to ensure that the reported mineral resource estimates are<br />
depleted for prior mining.<br />
14.3.10 Resource classification<br />
The resource classification definitions used for this estimate are those published by the<br />
Canadian Institute of Mining, Metallurgy and Petroleum in their document “CIM Definition<br />
Standards”.<br />
Measured Mineral Resource: that part of a Mineral Resource for which quantity, grade or<br />
quality, densities, shape, physical characteristics are so well established that they can be<br />
estimated with confidence sufficient to allow the appropriate application of technical and<br />
economic parameters, to support production planning and evaluation of the economic<br />
viability of the deposit. The estimate is based on detailed and reliable exploration,<br />
sampling and testing information gathered through appropriate techniques from locations<br />
such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough<br />
to confirm both geological and grade continuity.<br />
Indicated Mineral Resource: that part of a Mineral Resource for which quantity, grade or<br />
quality, densities, shape and physical characteristics can be estimated with a level of<br />
confidence sufficient to allow the appropriate application of technical and economic<br />
parameters, to support mine planning and evaluation of the economic viability of the<br />
deposit. The estimate is based on detailed and reliable exploration and testing information<br />
gathered through appropriate techniques from locations such as outcrops, trenches, pits,<br />
workings and drill holes that are spaced closely enough for geological and grade continuity<br />
to be reasonably assumed.<br />
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Inferred Mineral Resource: that part of a Mineral Resource for which quantity and grade<br />
or quality can be estimated on the basis of geological evidence and limited sampling and<br />
reasonably assumed, but not verified, geological and grade continuity. The estimate is<br />
based on limited information and sampling gathered through appropriate techniques from<br />
locations such as outcrops, trenches, pits, workings and drill holes.<br />
In order to identify those blocks in the Vulcan block model that could reasonably be<br />
considered as a Mineral Resource, the block model was filtered by a conceptual pit shell<br />
wireframe. A conceptual pit shell was developed using Whittle software in order to identify<br />
those parts of the block model that have reasonable prospects for eventual economic<br />
extraction. Parameters used were: 52º (overall pit slope); $1.25 /t mining cost; $1500 per<br />
oz gold price; 95% process recovery; $7 /t process cost.<br />
The blocks occurring within the conceptual pit shell were classified as either Indicated or<br />
Inferred. Mineralised blocks lying outside the pit shell are too low grade and lack<br />
geological continuity to be considered as part of a Mineral Resource estimate.<br />
After considering the distribution of composites in the deeper parts of the pit shell through<br />
the examination of geostatistical parameters from the kriging system, the author<br />
constructed a Vulcan solid for classification purposes. An Inferred Classification applies to<br />
all blocks in the Mineral Resource that lie beyond depths of 150 m but within the limit of<br />
the conceptual pit shell.<br />
Above 150 m, resource blocks that lie within the search ellipse and have been estimated<br />
by at least 12 samples have been classified as Indicated Resource blocks. The author<br />
has not classified any Measured blocks after considering the uncertainty in geological<br />
interpretation; the high nugget environment; short ranges of gold grade continuity; use of<br />
assigned densities and the current drill spacing.<br />
14.3.11 Resource reporting<br />
The Mineral Resource estimates are reported for a range of cut-off grades in Table 14.7<br />
and Table 14.8. A gold cut-off grade of 0.35 g/t Au for mineral resource reporting is<br />
recommended as it reflects the parameters used in the pit shell construction and is<br />
reasonable, given that there are existing open pit operations in similar geological terranes<br />
in Québec that are currently reported at cut-off grades of 0.30 to 0.32 g/t Au.<br />
Table 14.7<br />
Indicated mineral resource reported for a range of cut-off grades<br />
Reporting cut-off grade<br />
g/t Au<br />
Tonnes<br />
X 1,000<br />
Grade g/t Au<br />
<strong>Gold</strong> grams<br />
X 1,000<br />
<strong>Gold</strong> ounces<br />
X 1,000<br />
2.00 5,562 3.36 18,704.5 601.3<br />
1.50 10,345 2.60 26,928.0 865.7<br />
1.00 20,779 1.91 39,603.9 1,273.3<br />
0.75 31,730 1.55 49,086.0 1,578.2<br />
0.50 50,056 1.21 60,367.0 1,940.8<br />
0.35 67,555 1.00 67,690.0 2,420.8<br />
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Table 14.8<br />
Inferred resource reported for a range of cut-off grades<br />
Reporting cut-off grade<br />
g/t Au<br />
Tonnes<br />
X 1,000<br />
Grade g/t Au<br />
<strong>Gold</strong> grams<br />
X 1,000<br />
<strong>Gold</strong> ounces<br />
X 1,000<br />
2.00 4,272 3.47 14,834.8 476.9<br />
1.50 7,345 2.74 20,096.3 646.1<br />
1.00 15,897 1.91 30,411.8 977.7<br />
0.75 25,072 1.53 38,335.5 1232.5<br />
0.50 40,464 1.10 47,747.9 1535.1<br />
0.35 54,242 0.99 53,537.3 1721.2<br />
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15 Adjacent properties<br />
There is no information on adjacent properties for inclusion in this report.<br />
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16 Other relevant data and information<br />
There is no other relevant data and information for inclusion in this report.<br />
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17 Interpretation and conclusions<br />
An updated Mineral Resource estimate has been prepared for <strong>Prodigy</strong>’s Magino gold<br />
property located near Wawa in Ontario. The Indicated and Inferred estimates are<br />
intended for use to update a preliminary economic assessment of an open pit mining<br />
scenario.<br />
In the process of preparing the estimates, it was concluded that:<br />
The supplied database included 512 surface diamond drillholes (total of 103,491m)<br />
and 980 underground diamond drillholes (for a total of 60,345 m). Of the underground<br />
drillholes, the author elected to use only assays in the grade estimates from the longer<br />
drillholes and these amounted to 484 drillholes for a total of 48,896 m.<br />
All underground drillholes were completed in the period 1984 to 1991 and are<br />
dominated by narrow AQ diameter core with some BQ diameter core, clearly clustered<br />
around the underground workings as expected and, in some cases subsequently<br />
stoped out. Most underground core was sampled in its entirety. Sample volumes of<br />
the underground drill cores are markedly less than the surface drill cores and are<br />
likely unrepresentative given the incidence of coarse gold. Assays of underground<br />
core were performed at the mine laboratory during operations in the period 1987 to<br />
1991, and are unverifiable. Comparisons of underground core assays with surface<br />
core assays indicate a potential bias. Subsequent analysis allowed the exclusion of<br />
that set of underground drill cores which exhibited the most potential bias.<br />
Ninety-four (94) surface drillholes were completed in the period from 1997 to 2010<br />
and comprise HQ and NQ diameter core. Intervals from these holes have been<br />
subjected to re-sampling and assaying, however this task is incomplete. <strong>Prodigy</strong> has<br />
embarked on an in-fill drilling and sampling program and it is expected that much of<br />
the historic assay information will be superseded for use in subsequent mineral<br />
resource estimates.<br />
The geological interpretation used in the resource estimates will require updating to<br />
better reflect the distribution of quartz-sericite-pyrite zones and mineralised veins.<br />
The mineralized zones were geologically interpreted as structural domains and<br />
modelled as 3D solids using GEMS software. Blocks within these domains were<br />
estimated using ordinary kriging of 5 m composites.<br />
The Mineral Resource estimates were generated using Ordinary Kriging in Vulcan<br />
software. Search restrictions were applied to reduce the impact of high grade<br />
composites.<br />
The resource reporting was constrained by a conceptual pit shell to identify those<br />
regions of the model that have reasonable prospects for economic extraction.<br />
Eventual drill spacing of 25 m or less, confirmed through statistical analysis in a drill<br />
hole spacing study, should be considered for categorisation of Measured Mineral<br />
Resource estimates, and a bulk sampling program completed to validate this<br />
category.<br />
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18 Recommendations<br />
The author makes the following recommendations:<br />
Continue an in-fill drilling and sampling program so that all of the historic assay<br />
information can be replaced for use in subsequent mineral resource estimates. It will<br />
be possible to re-sample existing core and to ensure QAQC programs are in place,<br />
thus making use of the available historic core.<br />
Update the drillhole and sample database with consistent lithogical, alteration and<br />
structural records for historic data where possible.<br />
Complete a new series of 3D interpretations to map the distribution of quartz-sericitepyrite<br />
alteration and veins. Consider multi-element assays to assist in<br />
characterization of alteration zones and geological interpretation.<br />
Use the current resource block model for an update of the preliminary economic<br />
assessment reported in March 2011.<br />
Compile exploration data for the Gould property and develop a budget and schedule<br />
for an exploration program.<br />
Review and update current domain solids to ensure all mineralized rock is captured<br />
within a domain.<br />
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Project, Ste. Sault Marie Mining District, Ontario<br />
NI 43-101 <strong>Technic</strong>al Report<br />
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Project, Ste. Sault Marie Mining District, Ontario<br />
NI 43-101 <strong>Technic</strong>al Report<br />
20 Certificate of author, date and signature page<br />
(a)<br />
I, Andrew F. Ross, Senior Principal Consultant of Snowden Mining Industry<br />
Consultants <strong>Inc</strong>., 600 -1090 W. Pender St., Vancouver; do hereby certify that:<br />
(b) I am the author of “Mineral Resource Estimate Update, Magino <strong>Gold</strong> Project, Ste.<br />
Sault Marie Mining District, Ontario”, dated 2 November 2011 (the ‘Report’)<br />
prepared for <strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated.<br />
(c) I graduated with an BSc Honours Degree in Geology from the University of Adelaide<br />
in 1972. In 1985 I graduated with a MSc degree in Mining and Exploration Geology<br />
from James Cook University of North Queensland. I am: a Fellow and Chartered<br />
Professional of the Australasian Institute of Mining and Metallurgy; a member of the<br />
Australian Institute of Geoscientists; licensed as a Professional Geoscientist with<br />
APEG (British Columbia). I have worked as a geologist continuously for a total of 39<br />
years since graduation. I have been involved in resource evaluation consulting for<br />
16 years, including resource estimation of primary gold deposits for at least 5 years.<br />
I have been involved in gold exploration and mining operations for at least 5 years. I<br />
have read the definition of ‘qualified person’ set out in NI 43-101 (‘the Instrument’)<br />
and certify that by reason of my education, affiliation with a professional association<br />
and past relevant work experience, I fulfill the requirements of a ‘qualified person’ for<br />
the purposes of the Instrument.<br />
(d) I visited the Magino property from 23 February to 24 February, 2011 and from 1<br />
August to 3 August 2011.<br />
(e) I am responsible for the preparation of the Report.<br />
(f) I am independent of the issuer as defined in section 1.4 of the Instrument.<br />
(g) I have had prior involvement with the property that is the subject of the Report. I<br />
reviewed the technical report prepared by Burns & Reddick (Snowden, 2004); and<br />
authored technical reports in February and March 2011.<br />
(h) I have read the Instrument and Form 43-101F1, and the Report has been prepared<br />
in compliance with that instrument and form.<br />
(i) As of the date of this certificate, to the best of my knowledge, information and belief,<br />
the Report contains all the scientific and technical information that is required to be<br />
disclosed to make the Report not misleading.<br />
(j) I consent to the filing of the Report with any stock exchange or any regulatory<br />
authority and any publication by them, including electronic publication in the public<br />
company files on their websites accessible by the public, of the Report.<br />
Dated at Perth, Australia this 14th Day of December, 2011.<br />
[signed]<br />
Andrew F. Ross<br />
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