HIGHLIGHTS OF THE PRE-FEASIBILITY STUDY (All Funds are in CDN dollars)

  • Using the 2005 Technical Report issued by Innov-Explo, containing Measured and Indicated Resources of 841,591 tonnes grading 7.79 g/t(grams per tonne) representing 210,857 ounces gold using a 3.43 g/t cut-off grade, (Table 3).
  • Proven and Probable reserves were determined, using a cut-off grade of 3.43 g/t to be 843,772 tonnes at 7.38 g/t Au for 200,177 oz Au (Table 4).
  • The net present value discounted at 5% is $ 76.3 M with an IRR at 85%, and a payback period of only10 months.
  • The Pre-Feasibility Study estimates total pre-production capital expenditures of $35.4M.
  • Total operating costs are planned at $ 464 per ounce of gold during the production phase.
  • Project schedule to achieve full commercial production by Q3 2012 is as follows:
    • Deepen the shaft another 536 ft. in Q1-Q2 2011.
    • Develop two complete new operating levels and infrastructure in Q3-Q4 2011,
    • Complete a 5,000 tonne bulk sample in Q4 2011,
    • Ramp up production in Q1-Q2 2012.
    • Achieve full commercial production in Q3 2012 averaging 5,000 oz per month.