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Thor Lake Rare Earth Element Project, Canada

The Thor Lake Project will consist of a rare earth mine and concentrator located at Thor Lake, in addition to a hydrometallurgical upgrade facility at Pine Point, both in the North West Territories.

The Project will ramp up to a production rate of 2,000 tpd, and has a mine life of 18 years. The hydrometallurgical plant will produce a mixed rare earth oxide concentrate, as well as zirconium, niobium and tantalum products. RPA recommended that the Project be advanced to the Feasibility Study stage.

In 2001, RPA and Hatch Associates Limited were retained by a major bank to act as independent engineers for a group of Lead Arrangers to carry out an initial technical audit and ongoing monitoring during construction of the Diavik Diamond Project.

Using the results of the study, Avalon was able to raise capital through an equity offering.

In 2011, RPA was responsible for an updated Pre-feasibility Study and an updated Mineral Resource and Mineral Reserve estimate based on recent drilling at the Thor Lake project. The estimate was disclosed in an NI 43-101 compliant Technical Report. This report also included updated financial projections, cost estimates and cash flows.

Hammond Reef Gold Project, Canada

The Hammond Reef Gold Project is an exploration property located 170 km west of Thunder Bay, Ontario. Gold mineralization occurs in association with quartz veins, stockworks, and fractures which occupy a branch of a broad regional-scale brittle-ductile shear zone. RPA completed an audit of the Mineral Resource estimate and conceptual mine plan, including a preliminary economic review.

The conceptual mine plan consisted of an optimized open pit mine design, generation of a production schedule, and specification of necessary equipment. The economic review included an economic summary, discounted cash flow analysis, as well as capital and operating cost estimates.

RPA’s recommendations for further development of the project were primarily concerned with confirming the existing data and the acquisition of additional data to expand resources and eventually support Pre-feasibility or Feasibility level studies. A drilling program was recommended to upgrade the Resource estimate and to determine the extents of the deposit and possibly expand the resource into prospective areas.

Subsequent to RPA’s recommendations, Brett Resources Inc. initiated an in-fill drilling campaign in the winter of 2009-2010. They were also able to raise capital through a bought deal financing and a private placement financing. In March 2010 it was announced that Brett Resources Inc. was to be acquired via a friendly takeover bid from another Canadian gold mining company.

Mineral Expert Report for African Barrick Gold

The MER was on the company’s gold mining, development, and exploration assets located in Tanzania. The assets included four active gold mines and various exploration projects. Scott Wilson RPA, predecessor to RPA, carried out Resource and Reserve estimations on the four operating mines, as well as valuations of the numerous exploration projects.

Scott Wilson RPA performed a Mineral Resource and Mineral Reserve estimate for each operating mine. Projections were made based on the operating plans, production schedules, budget presentations, life of mine plans and past operating results for each mine. The operations include both open pit and underground mining methods. Using this information, it was possible to identify any material risks, areas of weakness and strengths related to each operation.

The exploration review focused on tenements, exploration prospects, exploration targets, and resource properties. The valuation was based on Mineral Resource estimates, data obtained from maps, licence details, joint venture agreements, sample databases, progress reports, and past and planned for exploration expenditures. Properties with estimated Mineral Resources were given a valuation based on dollar per contained ounce of gold, and properties without Mineral Resource estimates were given a dollar per hectare value. The valuation was presented with an upper and lower bound.

The MER was published as part of a prospectus in support for the global offering of shares for African Barrick Gold plc.

Uranium Operations, Kazakhstan

Uranium One is a Canadian based company listed on the Toronto and Johannesburg Stock Exchanges. Uranium One has an interest in five operating in situ recovery uranium mines (Akdala, South Inkai, Karatau, Akbastau, Zarechnoye), and one advanced development in situ recovery project (Kharasan), in south-central Kazakhstan.

RPA’s involvement with the projects dates back to 2006 when RPA (then Scott Wilson RPA) reclassified resources and (where present) reserves from the Russian classification, updated the resource and reserve estimates, and prepared NI 43-101 Technical Reports for the Akdala, South Inkai and Kharasan development projects for UrAsia Energy, predecessor to Uranium One.

In 2007, RPA audited the resource estimate and prepared a NI 43-101 Technical Report for the Karatau project for Effective Energy NV, a subsidiary of JSC Atomredmetzoloto, from which Uranium One acquired its interests in the Karatau, Akbastau and Zarechnoye mines.

In 2008, RPA completed a resource audit and NI 43-101 compliant Preliminary Assessment on the Akbastau development project and recommended that Effective Energy carry out further drilling and advance the project towards a prefeasibility study. Production commenced at Akbastau in 2009. RPA completed an updated resource estimate, Preliminary Assessment and NI 43-101 Technical Report in March 2010. Based on the current Mineral Resources, RPA estimated a remaining mine life of 14 years, as of January 1, 2010.

In 2010, RPA also completed Mineral Resource updates and NI 43-101 Technical Reports for the Karatau, Zarechnoye, and Akdala mines.

RPA continues to update the NI 43-101 Technical Reports for the Uranium One properties in Kazakhstan.

St. Lawrence Fluorspar Project, Canada

The St. Lawrence Fluorspar Project, located on the Burin Peninsula 350 road km southwest of St. John’s, Newfoundland, is an advanced stage exploration property. It hosts at least 40 fluorite bearing veins up to three kilometres long and up to 30 m thick. The project is a past producing mine, with approximately 4.6 million tonnes of fluorspar ore mined by previous operators. Canada Fluorspar (NL) Inc. plans to put the project back into production.

RPA estimated mineral resources of two mineralized veins, Tarefare and Blue Beach North, and converted them to mineral reserves. Two mining methods, Alimak and sublevel longhole stoping, were evaluated, with Alimak considered to be the better, less costly stoping alternative given ground support and development requirements at the property. The current plan is to develop two mines, Blue Beach North and Tarefare, with an overall mine life of 15 years to produce 1.8 million tonnes of fluorspar concentrate. The veins will be mined in series and some equipment will be transferred between the sites. The mill site will be a combination of new and existing facilities, which will be expanded and furnished with new equipment. An all-season, deep sea port will be constructed to replace the old wharf in the shallow St. Lawrence Harbour.

The project shows positive economics. In RPA’s opinion, the construction of a deep sea port, which would provide direct shipping of aggregates and other products from the area, will increase the value of the project. RPA recommends evaluation of the numerous other fluorite veins, such as the Canal Vein, to extend the mine life beyond the current 15 year plan.

© Copyright 2011 Roscoe Postle Associates, Inc.

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