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

6613 MINERAL PROCESSING AND METALLURGICAL TESTINGNo mineral processing or metallurgical studies have been made. However, theonly feasible method of processing this type of deposit is by chemical leaching. In Item8 it was noted that one of the attractions of the ion-adsorption REE type of deposit istheir metallurgical simplicity relative to the often-complex processing required for othertypes of REE deposit. Analyses of REE leached from exploration samples, by dilutesolutions of ammonium salts for example, should be a good initial indication of theirextractability with such solutions on a commercial scale. However, these analyses areno substitute for metallurgical tests.14 MINERAL RESOURCE ESTIMATESThe scattered meagre data do not allow any estimate of a REE mineralresource in the Chambe Basin.15 MINERAL RESERVE ESTIMATESThe data are not yet available to estimate a REE mineral resource in theChambe Basin.16 MINING METHODSNo consideration of mining methods has been made at the present time.However, the potential material is surficial soil and is known to be shallow, extendingfrom surface down to about 15 m depth. Presumably, shallow surface mining and insitu recovery will be considered if the project obtains encouraging results.17 RECOVERY METHODSAt this preliminary stage of exploration no specific information on any recoverymethod is appropriate, but would likely involve ion exchange of loosely-held REE bydilute aqueous solutions.18 PROJECT INFRASTUCTURENo consideration has yet been given to project infrastructure. However, in Item5 (c) the necessity of rehabilitating the existing cableway, or some other means of