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

9 EXPLORATIONReconnaissance samples taken include 9 samples taken in 2010 beforethe Prospecting Licence was granted and another 16 after granting of the licencein early 2011.(a) Procedures and parametersSamples taken so far (Table 2 and 3) are only of a reconnaissance nature,were taken mainly from convenient roadside exposures and are 1 to 5 kg in size.(b) Sampling methods and sample quality, representativeness, bias.Samples shown in Tables 2 and 3 were scraped mainly from available roadcuts and appear typical of the soils exposed at shallow depths. There isinsufficient data to determine how representative these soils are of thosethroughout the basin. As the leachable REE content is not directly observable inthe field it cannot be said whether they are biased toward higher or lower values.(c) Location, number, type, nature, sample spacing, size of area covered.Locations of the 21 soils and 3 rocks taken are listed in Table 2 and 3 andshown in Figure 12. These are mainly from exposures along logging tracks,spaced from 50 m to 500 m apart over about 2.5 km and mainly in the easternand southern part of the basin.(d) Significant results and interpretation of exploration informationThe most significant result of the analyses from the few samples so faranalyzed (Table 2 to 7) is that some of them contain easily-leachable REE (up to74% recovery from TREE of 620 ppm in one sample). The interpretation of thismeagre information is that it suggests the possibility that Chambe Basin maycontain REE mineralization of the ion adsorption type. The purpose of the currentdrill program is to provide sufficient data to evaluate this possibility.Of interest is MINDECO dike sample 11052306 with 5,495 ppm TREE(Table 5), including 2,131 ppm Y and high levels of other REE, an indication ofthe presence of primary REE enrichment in the rocks of Chambe Basin.