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

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4List of tablespageTable 1 Property boundaries 15Table 2 Soil samples collected by J. Ishikawa 27Table 3 Soil samples collected by MINDECO 28Table 4 REE analyses of Ishikawa samples 29Table 5 Total and leached REE in MINDECO samples 30Table 6 Recovery of leachable REE from MINDECO samples 31Table 7 Leachable REE in Ishikawa samples by MINDECO 31Table 8 Samples collected by P. Le Couteur 44Table 9 Reanalysis of 3 Ishikawa samples 45Table 10 Total REE in Le Couteur samples 48Table 11 Leachable REE in Le Couteur samples (method ME-MS04) 49Table 12 Ratio of soil REE to syenite REE 50Table 13 Leachable REE in Le Couteur samples (method ME-MS23) 50Table 14 Comparative analyses by Ishikawa, MINDECO, Le Couteur 51Table 15 Screen size of 2 soils 56Table 16 Composition of Chambe Basin syenite 60Table 17 Energy dispersive analyses of minerals in syenite E686961 62Table 18 Exploration expenditures estimated by MINDECO for phase 1 69List of Appendices (following page 73)Appendix 1 Total REE analyses of soilsAppendix 2 Leachable REE analyses of soilsAppendix 3 X-ray diffraction scans
51 SUMMARYProperty Description Chambe Basin is part of Malawi Exclusive Prospecting Licence 0325/11,a rectangular block about 40 km E-W and 27 km N-S with an area of 1,050 sq km, within whichthe licencee has exclusive rights to prospect for rare earths (“REE”) and bauxite.Location The Property is located in southernmost Malawi (south central East Africa) andcovers the Mulanje Massif. The centre of the Property is at approximately 15˚ 57”S, 35˚ 37”E.Ownership EPL 0325/11 is held in the name of Spring Stone Limited, a private Malawi companythat is a 100% subsidiary of Spring Stone Exploration Inc., a private company registered in BritishColumbia and a 100% subsidiary of Canadian public company Gold Canyon Resources Inc. Theproject is a joint venture between Gold Canyon Resources Inc, and Japan Oil, Gas and MetalsNational Corporation (“JOGMEC”), which provides 67% of funding for Spring Stone ExplorationInc. and consequently has a 67% equity option holding in licence-holder Spring Stone Ltd.Geology A gneissic basement complex of Precambrian to Lower Paleozoic age forms the oldestrocks in the area. This is intruded by a series of partly overlapping, subcircular, mostly syeniticplutons that are part of the Chilwa Alkaline Province, of Upper Jurassic to Lower Cretaceous age.Chambe Basin is an area of low relief covered by thick, bouldery, residual kaolinitic soils in themiddle of one of these syenite intrusions that is surrounded by a circular outer rim of bare syenite.Mineralization A small number of reconnaissance samples of soils collected in 2010 and early2011 from Chambe Basin and analysed for leachable rare earths (“REE”) suggest there ispotential for a bulk REE deposit in these soils.Exploration concept Chambe Basin is being explored for a REE deposit of the “ion adsorption”type. Such deposits are quite important REE producers in China but few have been foundelsewhere. Typically the REE content is low, but a significant part is easily extractable by ionexchange using dilute solutions of common chemicals such as ammonium sulphate. Othercharacteristics include very low U and Th, a large proportion of high value “mid” and “heavy” REE,and they may be mined by relatively inexpensive shallow surface excavations or in situ.Status of exploration The Property licence was acquired on 18 March of 2011, mostly on thebasis of reconnaissance samples by Geological Survey Dept headed by J. Ishikawa in 2010. Anexploration program of systematic short-hole drilling, with some pitting, initial environmentalsampling, and analysis of soils for leachable REE is currently being carried out by Mitsui MineralDevelopment Engineering Co. Ltd (“MINDECO”) under contract to Spring Stone Exploration Inc.,the vehicle for the joint venture between Gold Canyon Resources Inc and JOGMEC.Conclusions and recommendations Only a small number of reconnaissance samples of soilsfrom the Chambe Basin have so far been analyzed, but from review of these and verifyinganalyses the author agrees with the interpretation by J. Ishikawa, JOGMEC and MINDECO thatthere is potential for a REE deposit of the ion adsorption type. A US~$1.1 M program proposed byMINDECO, and accepted by the Malawi Government, is currently under way. While the authorhas had no opportunity to recommend changes to this approved program he endorses it as a welldesignedand thorough first phase plan of exploration of the Chambe Basin for ion-adsorptionREE potential.
Page 1 and 2: Geological reporton theCHAMBE BASIN
Page 3: 3List of FigurespageFig 1 Relations
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 and 16: 154 PROPERTY DESCRIPTION AND LOCATI
Page 17 and 18: 17JOGMEC to Spring Stone Limited by
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
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4 Nature of soilsTwo samples (E6869
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57Figure 15. Photomicrograph of sam
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Figure 17. Xray diffraction scan of
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61Figure 19. Polished slab 40 mm lo
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63Figure 21 Photomicrograph of syen
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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
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Materials Data, Inc.[XRD] Thursday,
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Materials Data, Inc.[XRD] Thursday,
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Malawi NI 43-101 - December 2011 - Gold Canyon Resources Inc.

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