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

6824 OTHER RELEVANT DATA AND INFORMATIONTo the author’s knowledge, there is no additional information or explanationnecessary to make this report understandable and not misleading.25 INTERPRETATION AND CONCLUSIONSDespite current interest in exploration for REE deposits, few deposits of theion-adsorption type are known outside China, where they are a significant source ofREE, especially of the mid and heavy REE, and they appear to have someadvantages over other types of REE deposit. Although only a small amount ofinformation is yet available, some soil samples of the Chambe Basin have highpercentages of leachable REE and suggest it may have potential for a REE deposit ofthe ion adsorption type, as originally suggested by J. Ishikawa, JOGMEC andMINDECO. The Chambe Basin deserves a thorough sampling to determine the size,grade, recovery, and economic potential of leachable REE.27 RECOMMENDATIONSThe program briefly described below to explore for a REE deposit of the ionadsorption type was prepared by MINDECO and, as the work and the expenditureshave both been presented to and approved as commitments by the Government ofMalawi in the course of applying for the licence, the author has no opportunity torecommend anything different. However, in the author’s opinion the MINDECOprogram is well designed, systematic, and should provide the data to make an initialevaluation of the leachable REE mineralization in the Chambe Basin. The author hasno hesitation in endorsing this program.Field work on the exploration program, being conducted by MINDECO underdirection of H. Harada, began in August of 2011. Estimated expenditures are listed inTable 18 and the principal activities of this program are as follows (Anonymous,2011b).Geology Drilling of about 160 shallow drill holes in soils on a 200 m grid (Figure 23)using two portable drills. Holes will be logged lithologically and radiometrically, andspecific gravity of soils measured. Samples will be taken every metre or at lithological