The Imwelo Gold Project

The Project resource comprises seven mineralized locations that have been drilled and includes:

A qualified person has not done sufficient work to classify the Historical Resource Estimate as current mineral resources, and the Company is not treating the Historical Resource Estimate as current mineral resources or mineral reserves. The Company believes that the Historical Resource Estimate is relevant to an appraisal of the merits of the Project and forms a reliable basis upon which to develop future exploration programs. The Company will need to conduct further exploration, and there is no guarantee that the results obtained will reflect the historical estimate. In order to verify the Historical Resource Estimate to a current mineral resource estimate, the Company will need to retain a qualified person to verify historical drilling and assaying methods and validate historical results, add any drilling and assaying or other pertinent geological information generated since the last estimation, and complete an updated resource estimate and a new technical report. Significant data compilation, drilling, sampling and data verification may be required by a qualified person before the Historical Resource Estimate can be classified as a current resource. There can be no assurance that any of the historical mineral resources, in whole or in part, will ever become economically viable. In addition, mineral resources are not mineral reserves and do not have demonstrated economic viability. Even if classified as a current mineral resource, there is no certainty as to whether further exploration will result in any inferred mineral resources being upgraded to an indicated or measured mineral resource category.

A large portion of the Project area is under a thick lateritic and saprolitic weathered horizon up to 50 m metres in vertical depth. Little outcrop is present on the property limiting the amount of local bedrock mapping to artisanal pits (where deep enough). Based on the drilling results and mapping done in artisanal pits, the felsic and mafic volcanic units of the Lower Nyanzian stratigraphy constitute the lithologies of the license area Quartz veins cross cut the lithologies and generally contain gold only within shear zones that have developed on lithological contacts. Mineralisation is pronounced when veins are associated with sulphide minerals (i.e. FeS2).’

Gold at Imwelo occurs in three main forms:

1. Auriferous quartz veins – Significant intersections announced by Mincor as well those from Barrick’s RAB and RC programs are associated with quartz veins.
2. Alluvial gold – Near-surface, artisanal workings are found in the north-western area of the tenement.
3. Fine disseminated gold within laterite – Commonly associated with strongly fractured and weathered quartz, suspended in the laterite matrix. This is the main material which villagers are recovering gold currently.

Drilling confirms the presence of gold within quartz veins, but further notes that not all veins are auriferous and the presence of shearing is regarded as a prerequisite. Gold is also not associated with vein only and the country rock (i.e. hanging and footwall) also hosts mineralization (also to a lesser grade) at least 0.5 m into country rock from the quartz vein.

IMWDD-003  14.7g/t over 5m from 49m down hole

IMWRC-009  6.8 g/t over 4m from 62m down hole

IMWRC-018  3.5 g/t over 5m from 37m down hole

IMWRC-037  14.2g/t over 7m from 33m down hole

IMWRC-038  4.2 g/t over 4m from 20m down hole

IMWRC-041  6.0 g/t over 3m from 15m down hole

IMWRC-047  5.2 g/t over 3m from 43m down hole

IMWRC-067  3.6 g/t over 6m from 21m down hole

IMRAB296  20.8g/t over 3m from 11m down hole

2BH-004  5.9 g/t over 5m from 40m down hole

7BH-002  13.0g/t over 3m from 22m down hole