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 Destiny Project, Quebec
* Todd McCracken, P.Geo, is a Qualified Person ("QP") for purposes of NI 43-101 Report. He is responsible for preparing the Report and the Resource Estimate disclosed in the Report. Mr McCracken is an employee of Wardrop, and independent from the Companies as described in section 1.4 of NI 43-101. Location and Access
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</html> Destiny Project, Quebec Maps
Geology
History In January, 2011 the company received a draft of an NI43-101 Technical Report (the Report) including a new Mineral Resource Estimate for the DAC Gold Deposit. The Report was prepared by Wardrop, a Tetra Tech Company (Wardrop)* and incorporates over 7,600 m of additional drilling that was completed on the deposit subsequent to an earlier NI43-101 compliant resource estimate calculated by W. A. Hubacheck Consultants Ltd and filed on SEDAR in 2007. The Report was filed on Sedar on March 3, 2011. Indicated and Inferred resources have been determined for the DAC Deposit. The deposit is made up of narrow high grade gold-bearing quartz veins occurring within five parallel alteration zones. These alteration zones carry gold at lower grades than the quartz veins but are significantly wider. The Wardrop report indicates that the additional drilling has expanded the DAC Deposit and significantly increased the contained ounces of gold. At a cut-off grade of 0.5 g/t gold and using the Inverse Distance Squared (ID2) estimation method, the five gold zones contain an Indicated Resource of about 10.8 million tonnes with an average grade of 1.05 g/t gold (364,000 contained ounces). In addition, the Inferred Resource totals 8.3 million tonnes with an average grade of 0.92 g/t gold (247,000 contained ounces). The current resource estimate indicates that the contained ounces are more than five times greater than was reported in the previous resource estimate report in 2007. Table 1 summarises the Resource Estimate at the 0.5 g/t cut-off. Table 1. DAC Resource Estimation Summary (using ID2 method)
Table 2 Cut-off Sensitivities for the DAC Deposit Resource Estimate
A cut off grade of 0.5 g/t gold was selected to tabulate the total resources based on the results of similar gold projects located in Ontario and Quebec. In addition, the following parameters were considered; 4:1 stripping ratio, operating costs of $14.30/tonne at 10,000 tonnes per day, long term gold price of $US973/troy ounce, $US to $Cdn conversion of 1.02 and gold recovery of 94%. The resources block considers the mineralization to start at approximately 15 m below surface down to a depth of 400m for the deepest zone (Zone 5). A four million dollar exploration and expansion program was recommended in the report by Wardrop. Major exploration programs for later this year are in the planning stages. The programs will consist of surface geochemical surveys over the Despinassy Shear, to help locate specific drill targets, followed by diamond drilling. The drilling is intended to target additional shallow gold mineralization to increase the viability of an open pit mining scenario for the project. Mineral Resources are not Mineral Reserves and by definition do not demonstrate economic viability. *Todd McCracken, P.Geo, is a Qualified Person ("QP") for purposes of NI 43-101 Report. He is responsible for preparing the Report and the Resource Estimate disclosed in the Report. Mr McCracken is an employee of Wardrop, and independent from the Companies as described in section 1.4 of NI 43-101. An exploration program including high resolution airborne magnetometer surveying as well as Borehole EM testing of selected drill holes was completed in December 2010. Some of these targets were tested with three holes, totalling 1,358 m in December. In 2009 Alto entered into an option agreement with Pacific Northwest Capital. In 2002, Cameco stopped work on the project as part of corporate restructuring. In 2004, Alto entered into an agreement with Cameco to purchase Cameco's 70% interest. Alto purchased Commander's remaining 30% interest in 2008. In 1998 Cameco Gold Inc, a subsidiary of Cameco Corporation, entered into a 70/30 JV with Commander Resources. Their work identified a strong shear-deformation corridor and resulted in the discovery of several parallel zones of anomalous gold. Prior to 1998, the property was subject to limited exploration. |
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