Malawi NI 43-101 - December 2011 - Gold Canyon Resources Inc.

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16(d) Ownership, surface rights, legal access, obligations, expiration date.The Chambe Basin lies within the Mulanje Mountain Forest Reserve and the mineraland surface rights are owned by the Government of the Republic of Malawi. Licence EPL0325/11 permits exclusive rights to carry on prospecting operations for rare earth elementsand bauxite. Legal access is by public roads and paths administered by the LikhubulaForestry Office of the Department of Forestry .Obligations assumed by licence-holder Spring Stone Ltd include the carrying out ofthe exploration program for rare earths and bauxite as proposed in the licence application(Anonymous (2011), Anonymous (2011a), Kojima (2011), Kojima (2011a). The originallyproposed expenditure of US $2.5 million was later reduced to US$1.0 million. Theexploration program was designed and will be carried out by Mitsui Mineral DevelopmentEngineering Co (“MINDECO”) under contract to Spring Stone Exploration Inc. Phase I ofthis program is to be carried out in fiscal year 2011 and consists of systematic shallowdrilling and pitting in Chambe Basin, with analysis and testing of soils for recovery of rareearths. Environmental observations will also be made.Conditions specified in the licence include requirements to commence operationswithin 3 months of granting of the licence, to supply quarterly progress reports and annualreports, to annually report the proposed program and budget for the next year’s work, toemploy and train Malawian citizens, to use goods and services from Malawi wheneverpossible, to conserve the environment, and to reclaim and restore areas damaged byexploration activities. Any shortfall from the proposed expenditures is considered a debt tothe Republic of Malawi.The Licence was granted on the 18 th day of March of 2011 for a period of 3 years, withan option to renew the Licence in accordance with Section 50 of the Malawi Mines andMinerals Act 1981.(e)Royalties, back-in rights, payments, agreements, encumbrancesThe joint venture between JOGMEC and Gold Canyon concerning a program forexploration of minerals in Malawi, defined as the “Malawi Project”, is detailed in a ProjectJoint Venture Agreement (”PVA”) made on September 13 of 2011 between JOGMEC, GoldCanyon, Spring Stone Limited and Spring Stone Exploration Inc and effective on November14 of 2011, the date of reassignment of Exclusive Prospecting Licence 0325/11 from
17JOGMEC to Spring Stone Limited by the Government of Malawi. Some details of thisagreement are contained in a news release made on September 8 of 2011 by Gold Canyonand available on the Gold Canyon website.Among other provisions and conditions of the PVA the Malawi Project is defined toinclude EPL 0325/11 and any other properties that may be acquired in Malawi. JOGMECholds the option to acquire 67% equity interest in the Malawi Project, which may beconverted to a proportionate shareholding in any Joint Venture formed from the MalawiProject. Gold Canyon holds the option to acquire 33% by contributing to the PVA. The PVAalso addresses matters such as conversion to net smelter royalty interests of 1.5% if dilutedto
Page 1 and 2: Geological reporton theCHAMBE BASIN
Page 3 and 4: 3List of FigurespageFig 1 Relations
Page 5 and 6: 51 SUMMARYProperty Description Cham
Page 7 and 8: 7Relationships between companies in
Page 9 and 10: 9Figure 3. More detailed map of Mal
Page 11 and 12: 11(b) Purpose of reportAccording to
Page 13 and 14: Figure 8 General geology of the Mul
Page 15: 154 PROPERTY DESCRIPTION AND LOCATI
Page 19 and 20: 19be required, and also a “Licenc
Page 21 and 22: 21(d) Climate, length of operating
Page 23 and 24: 23(c) Significant historical minera
Page 25 and 26: 25The following year, on May 22-23
Page 27 and 28: Table 2 Samples collected by J. Ish
Page 29 and 30: Table 4 REE analyses of 3 leached s
Page 31 and 32: Table 6 REE recovered from leach li
Page 33 and 34: 337D Individual REE composition of
Page 35 and 36: 35(such as apatite or the barium al
Page 37 and 38: 376 U and Th, which are generally a
Page 39 and 40: 9 EXPLORATIONReconnaissance samples
Page 41 and 42: 41(c) Quality control procedures.Th
Page 43 and 44: 43leach gives much lower values (se
Page 45 and 46: TABLE 9 Analyses of REE in 3 Ishika
Page 47 and 48: CHA-4ppm20015010050ISHMINPCL0La Ce
Page 49 and 50: Table 11 Results of leaching REE fr
Page 51 and 52: Table 14 Soils analyzed by Ishikawa
Page 53 and 54: 53Table 14 c REE leached from soil
Page 55 and 56: 4 Nature of soilsTwo samples (E6869
Page 57 and 58: 57Figure 15. Photomicrograph of sam
Page 59 and 60: Figure 17. Xray diffraction scan of
Page 61 and 62: 61Figure 19. Polished slab 40 mm lo
Page 63 and 64: 63Figure 21 Photomicrograph of syen
Page 65 and 66: 65profiles have well developed lowe
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67transporting material and people
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69boundaries. Pits and trenches wil
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71REFERENCESAnders, E., Grevesse, N
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-lDATE AND SIGNATURE PAGEl, Peter C
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VA11171150 - FinalizedCLIENT : MICG
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ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-
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5 TOT-ICP06SAMPLE TotalDESCRIPT%E68
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VA11176930 - FinalizedCLIENT : MICG
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77APPENDIX 3XRAY DIFFRACTION SCANSS
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[56.MDI] 56SCAN: 4.0/70.0/0.05/1(se
Page 99 and 100:
Materials Data, Inc.[XRD] Thursday,
Page 101:
Materials Data, Inc.[XRD] Thursday,
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Malawi NI 43-101 - December 2011 - Gold Canyon Resources Inc.

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