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Eagle Mountain

Project Overview

Eagle Mountain is an advanced, 100%-owned gold project in strategic partnership with IAMGOLD. The company is working aggressively towards the commencement of initial production in 2014, which will generate significant cash flow to accelerate operations to mid-tier producer levels.

Located in mining-friendly Guyana – an English-speaking jurisdiction with a stable democracy based on British law – the project contains an existing shallow NI 43-101-compliant resource:

  • 188,000 ounces (indicated), average grade of 1.49 g/t gold (0.5 g/t gold cut-off) and
  • 792,000 ounces (inferred), average grade of 1.19 g/t gold (0.5 g/t gold cut-off)

Strong gold grades and mineralization starting from surface make the deposit potentially suitable for lower-cost, open-pit production. Mineralogical and metallurgical testing completed at SGS Laboratories in Toronto shows strong recovery potential of up to 92%, which is in line with historical recoveries/mines in the region.

With the current resource covering only a small portion of Eagle Mountain – 250 hectares inside the 5,050-hectare property – there is excellent potential for expansion. The deposit remains open in three lateral directions and at depth, showing strong mineralization along its edges. Eagle Mountain also has an option agreement to earn up to 95% of the Mowasi property directly adjacent to the Eagle Mountain gold project.

Work Completed to Date

  • 281 holes drilled totaling 35,993 metres.
    - 78 drill holes (~11,000 metres) completed by Eagle Mountain.
    - Remaining holes completed by predecessors including IAMGOLD.
  • Excellent historical database (geophysics, adits, extensive sampling, auger drilling, LIDAR, etc.).
  • Over $16.5 million spent on exploration work at Eagle Mountain to date.

Milestones Achieved

  • Successfully expanded gold resource. Updated NI 43-101-compliant resource (Nov. 2012) represents 34% increase from Nov. 2010 resource.
  • Commenced Environmental Impact Assessment (EIA) report in support of mining permit application.
    - Biodiversity and water quality management work in progress.
    - Ensure compliance with environmental regulations and global best practices.
  • Discussions and legal regarding small-scale production partnerships in Guyana underway, with first co-production and income targeted in 2013.
    - Cash-flow would be leveraged to advance the flagship Eagle Mountain project.

Location and Infrastructure

Eagle Mountain is located approximately 200 km southwest of Guyana’s capital, Georgetown, and ~40 km from the historic Omai Gold Mine, which profitably produced almost four million ounces of gold at an average grade of approximately 1.4 g/t through 2005. Historical production from the general Madhia area is estimated at over one million ounces of gold from alluvial and eluvial sources. Over 300,000 ounces are recorded annually by artisanal miners in Guyana.

Other successful Guyanese operations include Guyana Goldfields’ Aurora project, which contains approximately 6.5 million ounces of gold. In February 2013, Guyana Goldfields closed a $100-million bought deal to fund development at Aurora. Sandspring Resources’ multi-million ounce Toroparu gold-copper deposit is targeted for large-scale production in 2015. The West Omai project containing approximately 1.2 million ounces is proposed to advance in cooperation with Troy Resources, which has proposed to acquire Azimuth Resources in a friendly takeover.

Eagle Mountain has excellent access and infrastructure. There is an existing road to the property and a major road to Georgetown is just 5 km away. A small airport at Madhia Township is within 4 km of Eagle Mountain and waterways are 30 km from the property.

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