Lang Lo Is Tech RPT

Breakwater Resources Ltd.
Langlois Mine Lebel-sur-Quvillon, Qubec NI 43-101 Technical Report
Prepared By: Torben Jensen, P.Eng., Vice President, Engineering Breakwater Resources Ltd.
December 3, 2010
Langlois Mine Technical Report
Table of Contents
1.0 Summary ............................................................................................................................. 4 2.0 Introduction and Terms of Reference .................................................................................. 9 3.0 Disclaimer ......................................................................................................................... 10 4.0 Property Description and Location .................................................................................... 11 5.0 Accessibility, Climate, Local Resources, Infrastructure and Physiography ...................... 13 6.0 History ............................................................................................................................... 15 7.0 Geological Setting ............................................................................................................. 16 8.0 Deposit Types .................................................................................................................... 19 9.0 Mineralization ................................................................................................................... 19 10.0 Exploration ........................................................................................................................ 21 11.0 Drilling .............................................................................................................................. 23 12.0 Sampling Method and Approach ....................................................................................... 25 13.0 Sample Preparation, Analyses and Security ...................................................................... 27 14.0 Data Verification ............................................................................................................... 40 15.0 Adjacent Properties ........................................................................................................... 41 16.0 Mineral Processing and Metallurgical Testing .................................................................. 42 16.1 Tailings Disposal ........................................................................................................... 43 17.0 Mineral Resources and Mineral Reserve Estimates .......................................................... 44 17.1 Conversion of Mineral Resources to Mineral Reserves ................................................ 45 17.2 Metal Price Assumptions ............................................................................................... 47 18.0 Other Relevant Data and Information ............................................................................... 48 19.0 Additional Requirements for Technical Reports on Development Properties and Production Properties .................................................................................................................... 49 19.1 Mining Operations ......................................................................................................... 49 19.2 Recoverability ............................................................................................................... 51 19.3 Markets .......................................................................................................................... 51 19.4 Contracts ........................................................................................................................ 52 19.5 Environmental Considerations ...................................................................................... 52 19.6 Taxes ............................................................................................................................. 52 19.7 Capital and Operating Cost Estimates ........................................................................... 52 19.8 Economic Analysis ........................................................................................................ 53 19.9 Payback ......................................................................................................................... 55 19.10 Mine Life ................................................................................................................... 55 20.0 Interpretation and Conclusions .......................................................................................... 56 21.0 Recommendations ............................................................................................................. 57 22.0 References ......................................................................................................................... 58 List of Tables Table 1-2 - Metallurgy - Historical Production 1997 - 2008 ........................................................... 5 Table 1-3 Forecast Production: Years 1 10 ............................................................................... 6 Table 1-4 Long-Term Pricing Assumptions ................................................................................. 6 Table 1-5 Projected Operating Results: Years 1 10 .................................................................. 7 Table 11-1 Distribution of Drill hole Collar Locations ................................................................. 23 Table 12-1 Distribution of Langlois Channel Sample Locations .................................................. 25 Table 12-2 Distribution of Grevet B Channel Sample Locations.................................................. 26 Table 17-1 - Langlois Mine Measured & Indicated Mineral Resources .................................... 45 Table 17-2 - Langlois Mine Inferred Mineral Resources ........................................................... 45
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Table 17-3 - Langlois Mine Proven & Probable Mineral Reserves ........................................... 46 Table 19-1 - Metallurgy - Historical Production 1997 2008 ...................................................... 51 Table 19-2 Forecast Production: Years 1 10 ........................................................................... 53 Table 19-3 Long-Term Pricing Assumptions ............................................................................. 54 Table 19-4 Projected Operating Results: Years 1 10 .............................................................. 54 Table 19-5 Sensitivities: Years 1 10 ........................................................................................ 55 List of Figures Figure 4-1 - Langlois Mine, Location Map ................................................................................... 11 Figure 4-2 - Property Map ............................................................................................................. 12 Figure 5-1 - Langlois Mine, Site Plan ........................................................................................... 13 Figure 7-1 - Regional Geology Map of Langlois Mine ................................................................. 16 Figure 7-2 - Geologic Map of the Langlois Mine Area ................................................................. 17 Figure 7-3 - Typical Cross Section (looking west) Through Zone 97 Showing Geometry of the Sulphide Mineralization ................................................................................................................ 18 Figure 9-1 - Longitudinal Section (looking north) Showing Location of Zones 3, 4 and 97 and the Current Mine Development. .......................................................................................................... 20 Figure 13-1 - Charts Comparing Zinc Check Assay Data Collected by Cambior in 1994............ 29 Figure 13-2 - Bias Charts Comparing IRM 2008 .......................................................................... 30 Figure 13-3 - Bias Charts Comparing Duplicated Pulp at Langlois Lab in 2008.......................... 32 Figure 13-4 - Bias Charts Comparing Blanks at Langlois Lab in 2008 ........................................ 34 Figure 13-5 - Bias Charts Comparing Zinc External Check Assay Data Pulp Collected by Breakwater in 2008 ....................................................................................................................... 36 Figure 13-6 - Bias Charts Comparing Copper External Check Assay Data Pulp Collected by Breakwater in 2008 ....................................................................................................................... 37 Figure 13-7 - Bias Charts Comparing Silver External Check Assay Data Pulp Collected by Breakwater in 2008 ....................................................................................................................... 38 Figure 13-8 - Bias Charts Comparing Zinc Check Assay Data Rejects Collected by Breakwater in 2008 ............................................................................................................................................... 39 Figure 16-1 - Mill Flowsheet ......................................................................................................... 42
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1.0
Summary
Langlois, which is situated in north-western Qubec approximately 213 kilometres north of ValdOr, reached commercial production as of July 1, 2007. The mine was purchased by Breakwater Resources Ltd. (Breakwater or the Company) as of May 2000. On November 28, 2000, Breakwater suspended operations at the Langlois Mine due to operating problems associated with the main ore-pass system and low zinc prices. The temporary suspension of operations was expected to provide Breakwater with the time necessary to compile new geological data and design a long-term development and operating plan that would allow for production at lower operating costs. SRK Consulting (SRK) was contracted to conduct a full feasibility study including the latest drill results of Zone 97 and a complete rework of the mine design and plan. The feasibility study was issued in August, 2001 and further updated in 2003. In November, 2005, Breakwater announced that it would develop the Langlois mine. Extensive engineering, metallurgical testing, mine re-design work and exploration had been carried out in support of a revised mine plan. Given the existing infrastructure and the work completed to date, which included shaft infrastructure upgrades, new ore passes and development work, the mine was ready for the drift development work to bring the mine into production. Production commenced during the fourth quarter of 2006 in Zones 3 and 4 with a total of 59,373 tonnes milled during 2006 and 437,875 tonnes milled during 2007. Commercial production was announced as of July 1, 2007. On November 2, 2008, operations at Langlois were temporarily suspended due to the decline in commodity prices and the general deterioration of the economic outlook globally. During operation, the Langlois mine produces zinc from two narrow, tabular volcanogenic massive (VMS) sulphide lenses: Zone 3, (1995-2000, 2006 to present), and Zone 4, (19972000, 2006 to present). A third lens, Zone 97, which is located approximately 1,000m to the east, is currently being developed on three levels. The mineral resource and mineral reserve estimates have been classified in accordance with the CIM Standards on Mineral Resources and Reserves Definitions and Guidelines adopted by the CIM Council on August 20, 2000, that classifies the mineral resources into measured, indicated and inferred categories and mineral reserves into proven and probable categories. Table 1-1 - Langlois Mine - Mineral Reserves and Resources
Tonnes 1,470,000 3,625,000 5,095,000 2,398,000 4,261,000 6,659,000 1,543,000 December 31, 2009 Zn (% ) Cu (% ) 8.67 0.50 10.06 0.71 9.66 0.65 9.42 10.44 10.07 7.99 0.56 0.70 0.65 0.54 Ag (g/t) 38.25 47.58 44.89 40.92 51.12 47.44 43.77 Au (g/t) 0.06 0.08 0.07 0.06 0.08 0.07 0.09
Proven Reserves Probable Reserves Proven & Probable Reserves Measured Resources Indicated Resources Measured & Indicated Resources Inferred Resources
* Note: Measured and Indicated Resources Include Proven and Probable Reserves
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Existing proven and probable mineral reserves are sufficient for at least ten years of production. Being an underground operation, additional mineralization tends to be delineated as mining proceeds. There is potential for existing mineral resources to be converted to reserves as well as potential for additional new discoveries. The mine facilities include a headframe, a paste backfill plant located within the mill, mechanical and electrical shops, a service building, a zinc/copper concentrator and a tailings pond. The mine produces zinc and copper concentrates, which are sold and shipped to smelters for further processing. From such processing, gold and silver credits are obtained as by-products. During operation in 2008, the mine employed up to 180 staff and hourly employees. All of the hourly employees are represented by a union with a collective agreement which expires in January 2012. In addition, there are several contractors on site working on mine development. The Grevet B deposit was being mined entirely by contractors. During 2008, there were a total of 297 contractors on site. Production statistics for the past eleven years are given in Table 1-2 below. Table 1-2 - Metallurgy - Historical Production 1997 - 2008
1997 Production Tonnes Milled Head Grade Zn (%) Cu (%) Ag (g/t) Recoveries Zn (%) Cu (%) Ag (%) Conc. Grade Zn (%) Cu (%) Tonnes Conc. Zn (t) Cu (t) Tonnes Metal Zn (t) Cu (T) Ag (Oz) 261,068 6.4 0.4 29.1 92.6 75.1 43.7 52.7 21.3 29,181 3,322 15,382 709 90,914 1998 1999 2000 2006 59,373 8.3 0.5 41.0 82.2 72.1 29.2 49.5 19.3 8,201 1,078 4,057 208 22,855 2007 437,875 7.1 0.4 28.6 90.9 72.1 39.6 52.3 20.3 54,184 6,492 28,327 1,315 159,673 2008 514,444 8.1 0.5 35.5 92.5 77.3 51.0 53.7 18.7 71,868 10,661 38,620 1,994 298,863
414,742 402,224 310,466 6.5 0.3 26.7 93.3 73.6 35.4 52.9 24.0 47,770 4,198 7.5 0.4 28.8 93.6 69.9 30.1 52.0 21.6 54,397 4,739 7.9 0.4 31.4 92.8 70.6 30.9 52.7 22.3 43,287 3,589 22,792 800 96,976
25,281 28,280 1,009 1,,023 126,224 112,063
A long-term plan has been developed that is based on mining and processing only the proven and probable reserves at a rate of up to 600,000 tonnes per annum. Table 1-3 shows the total forecast production for years one through 10.
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Table 1-3 Forecast Production: Years 1 10

Total M illed Tonnes Head Grades Zinc Copper Silver M ill Recoveries Zinc Copper Concentrate Prod. Zinc Copper Contained M etal Zinc Copper Silver
000 t % % g/t % % 000 t 000 t 000 t 000 t 000 oz
5,096 9.7% 0.7% 45 93.5% 80.0% 852.5 130.2 460.3 26.7 4,046
For the December 31, 2009 mineral reserves estimates, metal prices, including premiums, used to determine economic viability for Grevet B, Zones 3, 4 and 97 at Langlois were US$1.00/lb. zinc, C$/US$ exchange rate of 1.12, US$700/oz. gold, US$12.55/oz. silver, US$2.66/lb. copper and US$0.83/lb. lead. The metal prices used represent the approximate historical five year average for each metal from 2005 to 2009. Only metal prices for zinc, copper and silver were used to determine the NSR value of the various blocks. A cut-off NSR value of $85.00 per tonne has been used for all zones, including Grevet B. A financial model has been prepared based on the metal prices, currencies and treatment and refining charges listed in Table 1-4 below. Table 1-4 Long-Term Pricing Assumptions
Commodity Prices Zinc US$/lb. US$/t US$/lb. Copper US$/t Silver US$/oz Exchange Rate C$/US$ 1.00 2,205 2.66 5,864 12.55 1.12
Treatment Charges Zinc US$/t Copper US$/t Refining Charges US/lb. Copper
204 50 0.07
Projected total operating results for years one through 10 are summarized in Table 1-5.
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Table 1-5 Projected Operating Results: Years 1 10

Total Milled Tonnes Payable Metal Zinc Copper Silver
000 lb. 000 lb. 000 oz 000 t
5,096
862,648 55,960 3,720
Smelter Revenue Smelter Treatment Transportation Operating Cost Operating Cash Flow Mining Tax Capital Cashflow Cash Cost US$/lb./Payable Zinc Operating Cost/t Milled
(millions)
1,186 (232) (85) (471) 397 (2) (115) 280
$ $
0.541 92.51
The long-term plan estimates the production of 863 billion pounds of payable zinc, 56 million pounds of payable copper and 3,720,000 ounces of payable silver. Up-to-date operating costs have been included to reflect increased costs of labour and consumables. The long-term plan is sensitive to metal prices, exchange rates, operating and capital costs, grade and smelter charges. The operating scenario depicted in Table 1-5 indicates that all future capital will be paid back. The Langlois mine has a major mineralized system comprising mineralized zones of many types and sizes, often of exceptional grade. The current property mineral reserves provide an estimated mine life of approximately ten years if production is limited to the currently known areas. Sufficient additional tonnages are contained in the measured, indicated and inferred resource categories to increase substantially the current mine life, however, exploration work must be conducted in the near future to determine the extent to which these mineral resources can be upgraded to mineable tonnages and to ensure these areas are developed for mining within the time frame of the current mine plan. Historically, a consistent and committed funding level for exploration programs resulted in successful identification of additional mineral reserves and resources and consequently added to the life of the mine. There is potential to upgrade mineral resources and identify new deposits.
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Cautionary Statement on Forward Looking Statements

This Report may include certain forward-looking statements relating to Breakwater and Langlois, including mineral resource and mineral reserve estimates, production capacities, operating and capital costs, exchange rates, products to be produced and demand for such products. Inherent in such forward-looking statements are risks and uncertainties well beyond the ability of Breakwater or Langlois management to predict or control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this Report. These forward-looking statements should not be relied upon as representing any partys views as of any date subsequent to the effective date of this Report.
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2.0
Introduction and Terms of Reference
The Langlois mine technical report has been prepared to satisfy National Instrument 43-101 Section 4.2 - Obligation to File a Technical Report in Connection with Certain Written Disclosure Concerning Mineral Projects on Material Properties.
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3.0
Disclaimer
The achievability of life of mine plans, budgets and forecasts are inherently uncertain. Consequently actual results may be significantly more or less favourable. This report includes technical information, which requires subsequent calculations to derive subtotals, totals and weighted averages. Such calculations inherently involve a degree of rounding and consequently introduce a margin of error.
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4.0
Property Description and Location
The Langlois mine is located in north-western Qubec, approximately 48kilometres northeast of the town of Lebel-Sur-Quvillon and 213 kilometres northeast of Val-dOr (49o 14 50 N, 76o 40 26 W). Lebel-Sur-Quvillon has a population of approximately 3,500.
Figure 4-1 - Langlois Mine, Location Map
The property is held through a 134.27 hectare mining lease granted until the year 2015. The lease, upon expiry, may be renewed by formal application to the applicable governmental authorities. During 2007, a new 60.014 hectare mining lease was granted for the Grevet B deposit, located three kilometres south-east of the Langlois mine. On April 15, 2008, the Company purchased 100% of Metco Resources Inc. for 7.0 million Common Shares of the Company. The transaction enabled the Company to consolidate its land position in the Lebel-sur-Quvillon camp, gain entry into a large and prospective land package in the Matagami camp and also secure potential additional feed for the Langlois mill. As a result of the Metco purchase, there are now 691 claims surrounding the lease covering approximately 11,580 hectares in Grevet, Mountain and Ruette Townships. In 2007, a block of 221 claims was staked on the Wedding River property covering approximately 11,657 hectares in Grevet, Franquet and Verneuil Townships. There are no royalties payable on mineral production from the Langlois mine or from Grevet B. The mine operates under required Certificates of Authorization issued by the Qubec Ministry of Environment under the Loi sur la qualit de lenvironnement (L.R.Q., chapter Q-2). In addition, all approvals/leases required for land use (tailings pond, quarries and pits) have been issued by
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the Qubec Ministry of Natural Resources pursuant to the Loi sur les mines (L.R.Q., chapter M13.1). Figure 4-2 - Property Map
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5.0
Accessibility, Climate, Local Resources, Infrastructure and Physiography
The mine is accessed via a gravel road jointly maintained by the Company and a forest products company which has stopped its operation for an undefined period of time. The climate in northwestern Qubec includes cold winters followed by temperate summers. Temperatures in winter can reach 45C and summer temperatures can reach +33C. Average precipitation is 690 mm per year. The topography of the minesite is relatively flat. Vegetation is typical of north-western Qubec with scrub brush and swamp. The property is at an elevation of 300 metres above sea level. The mine facilities include a headframe, a paste backfill plant located within the mill, mechanical and electrical shops, a service building, a zinc/copper concentrator and a tailings pond. The mine produces zinc and copper concentrates, which are sold and shipped to smelters for further processing. From such processing, gold and silver credits are obtained as by-products. Figure 5-1 - Langlois Mine Site Plan
The mine is equipped with a 902 metre deep four-compartment shaft. There are two hoists, a three metre diameter double drum hoist for skipping and a 2.4 metre diameter double drum service hoist. Two seven tonne skips are used to hoist the blasted material to surface. At present, there is a crusher station at the bottom level of the mine. However, due to severe ore-pass wall erosion, constant plugging and consequent dilution, an additional loading facility was established
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on level 11. Other loading facilities have been installed on levels 9 and 13 to overcome the orepass problems which plagued previous operations. During operation in 2008, the mine employed up to 180 staff and hourly employees. All of the hourly employees are represented by a union with a collective agreement which expires in January 2012. In addition, there are several contractors on site working on mine development. The Grevet B deposit was being mined entirely by contractors. During 2008, there were a total of 297 contractors on site.
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6.0
History
The deposit, originally known as the Grevet Project, was discovered in 1989 by Serem-Qubec Inc. (50 percent) and VSM Exploration Inc. (50 percent). Cambior acquired its initial 50 percent interest in the Grevet Project in July 1992 with the acquisition of VSM. In September 1993, Cambior purchased the remaining 50 percent interest in the project from Serem to hold a 100 percent interest. In 1994, Cambior commenced an underground exploration program designed to delineate mineable reserves. Due to the success of the underground exploration program, development work on the property commenced in the third quarter of 1994 and was completed in December 1995. Commercial production began at the mine in February 1996. Production at Langlois was halted in December 1996 due to high dilution problems in the mine. These problems were rectified by modifications to the mining method and production resumed in July 1997. The mine was purchased by Breakwater as of May 2000. During the months of June and July, the ore-pass system from the main production zone was out of service while a new system was being commissioned. This had a negative impact on mill throughput and grade. On November 28, 2000, Breakwater suspended operations at Langlois due to operating problems associated with the main ore-pass system and low zinc prices. The difficulties with the ore-pass system combined with a drop in metal prices and high treatment charges made it uneconomic to operate the mine. The temporary suspension of operations was expected to provide Breakwater with the time necessary to compile new geological data and design a long-term development and operating plan that would allow for production at lower operating costs. SRK was contracted to conduct a full feasibility study including the latest drill results of Zone 97 and a complete rework of the mine design and plan. The feasibility study was issued in August, 2001. During the fourth quarter of 2002, a drill program totaling 7,935 metres was initiated with the objective of further delineating and upgrading resources to reserves in Zone 97, both above 6 level and below 13 level. SRK updated the feasibility study in 2003 to include new mineral reserves. In November, 2005, Breakwater announced that it would develop the Langlois mine. Extensive engineering, metallurgical testing, mine re-design work and exploration had been carried out in support of a revised mine plan. Given the existing infrastructure and the work completed to date, which included shaft infrastructure upgrades, new ore handling facilities and development work, the mine was ready for the drift development work to bring the mine into production. Milling commenced in November 2006 and commercial production, effective July 1, 2007, was announced. On November 2, 2008, operations at Langlois were temporarily suspended due to the decline in commodity prices and the general deterioration of the economic outlook globally.
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7.0
Geological Setting
The Langlois mine produces zinc (along with lesser values of copper, silver and gold) from narrow, tabular volcanogenic massive sulphide (VMS) bodies. The bodies are hosted within mafic to intermediate volcanic and volcaniclastic units in the central-east portion of the northern Archean volcanic belt of the Abitibi Sub-province or, more precisely, within the Miquelon segment. The lithologies in the area predominately consist of a succession of mafic to intermediate lava flows and volcaniclastic rocks with less abundant felsic volcanic and sedimentary units. The rock sequence has been affected by a regional deformation, which forms sub-vertical isoclinal folds. The rock package is intruded by widespread thin mafic to intermediate sills. The volcanic complex is bounded to the south by the Mountain pluton, a large syn-kinematic felsic intrusion whose thermal aureole has metamorphosed the volcanic rocks including the sulphide mineralization to lower amphibolite mineral assemblages. Figure 7-1 - Regional Geology Map of Langlois Mine
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Figure 7-2 - Geologic Map of the Langlois Mine Area
The Langlois mine is located within the Cameron deformation zone, a high strain zone imparting strong penetrative planar fabric to all lithologies. This shear zone trends approximately 120 degrees and extends regionally over more than 80 kilometres of strike length and is up to five kilometres thick. In the mine area it is over three kilometres in thickness. The intense ductile deformation associated with the Cameron deformation zone has obliterated most of the primary stratigraphic relationships and textures. All known sulphide occurrences are aligned sub-parallel to the dominant foliation, slightly oblique to the strike of volcano-sedimentary units. Three corridors host the most significant zincrich massive sulphide bodies, including Langlois mine, Grevet B and Orphe. Each corridor may correspond to fossilized volcanogenic fluid conduits.
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Figure 7-3 - Typical Cross Section (looking west) Through Zone 97 Showing Geometry of the Sulphide Mineralization
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8.0
Deposit Types
The character and nature of the polymetallic sulphide mineralization found at the Langlois mine is identical to a group of sulphide deposits known as volcanogenic massive sulphide deposits. In these deposits, the metal-rich sulphide mineralization is formed by hydrothermal processes generally related with and contemporaneous to active sub-marine volcanic activity. In this type of deposit, metal-bearing sulphides form stratabound horizons and discordant stockwork feeder zones produced by precipitation of sulphide minerals at or near the seafloor, typically proximal to a major felsic volcanic edifice. Stratabound sulphide bodies have a lenticular shape while discordant stockwork zones adopt various shapes depending on the architecture of the fluid conduits. Hydrothermal alteration is important and often used as a pathfinder for the exploration of this type of deposit. Such deposits exhibit a strong lithological and structural control. In the Abitibi region, volcanogenic massive sulphide deposits are predominantly associated with felsic volcanic rocks, particularly with proximal volcanic facies and volcanogenic faults. Individual deposits typically exhibit strong metal and hydrothermal alteration zoning related to primary cooling patterns of hydrothermal fluids. Zinc, silver and clay-rich alteration minerals are typically found along the cooler fringe of the stratabound portions of the deposit while copper, gold and white-mica alteration minerals often predominate in the discordant stockwork proximal to the hotter fluid conduits. These patterns also depict strong chemical zoning in rocks surrounding volcanogenic deposits and are also useful pathfinders used in exploration.
9.0
Mineralization
The Langlois mine produces zinc from two massive sulphide zones: Zone 3, (1995-2000, 2006 to present), and Zone 4, (1997-2000, 2006 to present). A third lens, Zone 97, which is located approximately 1,000 metres to the east, has been developed along two levels (level 9 and 13) and one sub-level 14 metres above the level 9. Recent development has accessed Zone 97 on levels 6 and 13 and ramp development is currently being carried out from level 9 to level 6. Grevet B is another sulphide body located about 3 kilometres south-east of Langlois. At Grevet B, one principal lens is vertically developed for 114 metres with levels at 20 metre vertical spacing. Grevet B has similar characteristics to the Langlois lenses. Zone 97 consists of three closely spaced massive sulphide bodies (South, Main and North). Zones 3 and 4 are located between surface and 700 metres below the surface, while Zone 97 is located between 300 and 900 metres below the surface. Zone 5 is a fourth sulphide-bearing zone located to the west of Zone 3, near the surface. Grevet B zone is located from 20 to 200 metres below surface. Each massive sulphide body is relatively thin (one to eight metres in thickness), but with considerable vertical and lateral extensions (more than 500 metres in either direction). The sulphide zones are stacked across the felsic sequence along a narrow corridor slightly oblique to the main rock layering. From south-west to north-east, the zones are: Zone 5, Zone 4, Zone 3 and Zone 97.
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Figure 9-1 - Longitudinal Section (looking north) Showing Location of Zones 3, 4 and 97 and the Current Mine Development.
FRESH AIR RAISE
EXHAUST RAISE
ZONE 97
500
ZONE 4
ZONE 3
SHAFT
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ZONE 1
ZONE 3
EXHAUST RAISE
20
METRES
In longitudinal section, each massive sulphide zone, except Zone 5, portrays an elongated lensoid shape, the long axis of which plunges moderately towards the south-east, parallel to the plunge of the regional stretching lineation. In addition, the centre of gravity of each lens becomes progressively deeper moving along the stacking corridor toward the north-east. The long axis of Zone 5 seems to plunge to the west instead. The main sulphide minerals are pyrite, sphalerite and to a lesser degree, chalcopyrite and pyrrhotite. Locally, sulphide mineralization can grade up to 60 percent zinc. The volcanogenic massive sulphide mineralization at Langlois has survived regional metamorphism and intense ductile deformation which has considerably modified the primary distribution of the sulphide minerals. Sulphides are completely recrystallized and have been redistributed into narrow tabular sheets (almost vein-like), sub-parallel to the main rock layering. Despite this post-mineralization redistribution, primary metal and to a certain extent alteration mineral zoning has been preserved and betrays the volcanogenic origin of the sulphide mineralization. Mafic dikes cut the sulphide zones in many areas and have historically been a major contributor of internal dilution. In addition, the well-foliated, chloritic volcanic host rocks have poor rock mass quality and have locally caused ground-control problems and excessive dilution.
10.0
Exploration
Most of the relevant exploration work pertaining to the Langlois mine property was carried out prior to the Companys acquisition of the project. Surface exploration work leading to the discovery of the sulphide deposits was carried out between the early 1980s and mid-1990s by Serem and VSM and subsequently by Cambior. Surface exploration work prior to commencement of mining included geological mapping, ground and airborne geophysics and extensive diamond drilling and downhole geophysical surveying. Underground exploration work was initiated by Cambior in 1994 and included underground tunneling, definition drilling and bulk sampling in preparation for a production decision which was made in late 1995. After commencement of production, underground exploration primarily consisted of delineation and definition drilling in Zones 3 and 4 and to a lesser extent Zone 97. The bulk of the underground exploration work carried out by Cambior targeted Zone 3 and Zone 4 while Breakwater focused its exploration efforts on Zone 97. Cambior and subsequently the Company conducted surface exploration drilling work outside the main sulphide zones but inside the mine lease and on adjoining mineral claims. This work consisted primarily of ground geophysical surveys followed by diamond drilling on geophysical and geological targets. The description of the exploration work presented here focuses on relevant exploration work carried out inside the mine lease area. The extensive exploration work carried out by previous operators and Breakwater on the adjoining mineral claims is not considered material and therefore is not discussed here.
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A diamond drill program was conducted in 2007 to investigate the highly prospective extensions of all the known zones containing resources and reserves at the mine. This program covered an area of 800 vertical metres from surface by two kilometres along the strike of the Langlois deposit. One objective of this program was to move some of the known inferred resources into the indicated category. Very few of the proximal zone extensions had been tested from underground before 2007 due to a lack of development. By the end of 2007, 52,614 metres were drilled from both surface and underground to investigate the surface and underground extensions of Zones 3, 4 and 97. For Zone 3, economic mineralization appears to extend to the surface and consequently a new resource estimate was prepared. Zone 97 has been tested using two drill rigs and results show a new satellite zone near surface at the east end of the existing deposit. From underground, Zone 97 west extension was tested from level 13 following a promising intersection obtained in 2006 from surface drilling which was located about 400 metres west of the currently known Zone 97. Another satellite zone has been defined and has been included in the resource estimate. In 2007, a deep drilling program was initiated in Zone 97 to target 300 metres below the last developed level. By the end of the year, two holes were drilled, one of which intersected the mineralized zone with an economic intersect and the other did not reach the target. The new resource estimate takes this information into account. During the third and fourth quarters of 2007, Zone 1 (parallel to Zone 3 but about 20-30 metres further south) and Zone 3 were drill tested from surface with the objective of upgrading some inferred resources to the indicated category. The Zone 3 west extension, located between level 6 and 8, has also been drilled in order to upgrade inferred resources to the reserve category. A 200 metre long lateral extension of economic mineralization was defined to the west of Zone 4 between level 4 and 6. Underground drilling has also defined an eastern down plunge extension of Zone 4 below level 4. During 2007, all of the zones were reinterpreted and re-modeled to incorporate forecast base metal prices, lower cut-off grades and incorporation of all diamond drill intersections and channel samples in order to redefine the economic envelope. At end of 2007, a fully integrated 3D block model has been developed for Langlois and Grevet B with which to calculate new resource and reserve estimates. During 2008, an 11,974 metre surface and underground diamond drilling program was carried out with the goal of completing infill, definition and valuation drilling. More than half of the program was completed in Zone 97 in order to better define the relationship between the Main and North zones. This drilling was done to evaluate the potential of mining Zone 97 Main and Zone 97 North, a parallel vein structure, at one time within one stope. All drilling was done from the 13 level targeting the area between 12 and 14 levels. Results show two veins with massive to semi-massive sulphides (mainly sphalerite). The veins range from less than a metre to four metres width with the waste between the veins ranging from virtually zero to five to six metres in some places. Zone 97 North and West extensions were delineated from level 13. The main goal was to optimize stope design and mining. A final interpretation shows areas where two veins are mineable together which is accounted for in the December 31, 2009 reserve estimate. Additional drilling may be required in the future in order to identify other similar areas. Diamond drilling was carried out in Zones 3 and 4 and at Grevet B as well. For Zone 3, the continuity of economic mineralization was confirmed in the central west part between levels 6 and 8. Zone 1 was investigated from surface by shallow drilling.
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11.0
Drilling
The Langlois diamond drilling database contains information from a total 2,449 holes of which 361 drill holes were drilled from surface and 2,088 from underground. The holes were drilled between 1988 and 2008. The drill hole database is in Access format and has been processed with Gemcom software. The distribution of drill hole collar locations is presented in Table 11-1 below. Table 11-1 Distribution of Drill Hole Collar Locations
Collar Location Surface Level 1 Level 3 Level 4 Level 5 Level 6 Level 7 Level 8 Level 9 Level 10 Level 11 Level 12 Level 13 Number of holes 361 2 12 378 346 165 20 97 567 206 145 6 144
The Grevet B diamond drill database contains information from a total 149 holes of which 116 drill holes were drilled from surface and 33 from underground. Grevet Bs drill hole database is in Access format and has been processed with Gemcom software. All surface drill holes are 36.5mm in diameter (BQ), while BQ and 27mm diameter drill holes (AQ) were drilled from underground. Typically, all drill holes were drilled on sections aligned north-south, in respect to the north of the local mine grid which is 27 degrees east of true north, intersecting the plane of the sulphide zones as close to a right angle as possible. Section lines are spaced at 10 metre intervals in Zones 3 and 4 and at 10 and 20 metre intervals in Zone 97. Since 2006, some holes were drilled from specific drill bays and holes are not necessarily at a right angle to the sulphide zones. Drilling and chip assay sampling procedures were designed to sample the entire width of the sulphide mineralization. Drill core recovery is typically better than 95 percent. The drill core is stored on-site in clearly identified wooden boxes stacked into covered steel racks, with sample numbers marked for easy review. The position of all drill hole collars is surveyed. An independent land surveyor surveys the collar of all surface drill holes according to the local mine grid and a modified Transverse Mercator grid (MTM Nad83 datum). Underground drill hole collars are surveyed by mine surveyors into the local mine grid system.
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Surface exploration drill holes are routinely surveyed for plunge deviation using hydrochloric acid testing at regular intervals varying between 30 and 50 metres. Lateral deviation is monitored during drilling using Pajari magnetic readings at regular intervals, typically 100 to 150 metres and care is taken to avoid readings in magnetic sections. In addition, several longer surface drill holes are also surveyed using gyroscopic instruments with readings at 5 to 10 metres. Since October, 2006, all surface and underground holes are routinely surveyed for plunge and lateral deviation using Flex-it gyroscopic readings at regular intervals, typically 30 metres. Underground drill holes are typically short. For holes drilled before 2006, lateral deviation was monitored using hydrochloric acid testing only, except for longer holes in which Pajari readings were also taken at regular intervals during drilling. Typically, drilling data is spaced at approximately 10 to 15 metres in Zone 3, except in the area between levels 6 and 7, where the majority of resources remain; 20 metres in Zone 4 and approximately 40 metres in Zone 97, except between levels 8 and 9, and the 2007-08 underground drilling where the spacing is approximately 10 to 20 metres. The 2008 drilling was mainly done on the west extension between levels 11 and 14 and infill drilling between levels 11 and 13.
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12.0
Sampling Method and Approach
Little information is available about the sampling methodologies used prior to the beginning of mining at Langlois. Core samples from historical surface exploration drill holes were typically collected on half core mechanically split over lengths varying between 0.2 and 1.5 metres and honouring geology. After commencement of mining, the geology department implemented elaborate core description and sampling procedures. Drilled core was first examined for consistency by a geologist. Recovery, rock mass quality and geological description of core was recorded on paper and subsequently transferred into a core logging computer package. Sampling intervals were marked by an appropriately qualified geologist. Since 2007, the geological description of the core is recorded directly into a core logging computer package designed by Gemcom. For BQ-size holes, core assay samples are collected on half core mechanically split lengthwise. Historically, for AQ-size drill holes, assay samples were collected from full core, however, since 2006, assay samples are now collected from half core for AQ-size. Sampling intervals vary between 0.2 and 1.0 metre and honour geological and mineralogical boundaries. In the sampling protocol, care is given to sample sulphide material according to mineralogy. Each assay sample is placed in plastic bags, assigned a unique identification number and stored for future assaying at the mine laboratory. Underground chip samples are collected from all active development faces by a geologist or qualified technician. Individual samples are collected by chipping the face with a rock hammer at waist height from left to right across the full width of the sulphide zone and perpendicular to its dip. Care is taken to avoid chipped rock larger than 2.5cm in size. Average weight of each sample is approximately one kilogram. Individual sample lengths vary between 0.3 and 1.0 metre. Each sample is collected in a plastic sample bag, assigned a unique sample identification number and descriptive information about the nature and location of each sample was recorded. Underground sampling data is routinely integrated with drill hole data. The Langlois channel sample database contains information from a total 2,124 sampled faces where 682 are averaged from two or three single faces while 1,442 are single faces. All the averaged samples coming from channeling were performed before 2003 while the rest is from sampling after 2005 between levels 3 and 13. The channel sample database is in Access format and has been processed with Gemcom software. The distribution of channel sample vein locations is presented in Table 12-1 below Table 12-1 Distribution of Langlois Channel Sample Locations
Collar Location Vein 1, 2 and 3 Vein 4 Vein 97 Number of Channels 1,095 454 575
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The Grevet B channel sample database contains information from a total 487 sampled faces that were sampled during 2006 and 2007. Test holes are considered for interpretation but not included in the resource estimate. All of the channel sample database is in Access format and has been processed with Gemcom software. The distribution of channel sample vein locations is presented in Table 12-2 below Table 12-2 Distribution of Grevet B Channel Sample Locations
Collar Location Level 25 Level 54 Level 74 Level 94 Level 114 Level 134 Number of Channels 52 111 44 116 164 0
The chip samples are analyzed for zinc, copper, silver and gold. A density measurement is also determined for the chip samples. On a regular basis test holes are drilled into the walls of the development headings to determine the extent of the mineralization. In certain cases, the values obtained from the test holes are used to determine the average grade of the heading. Generally, the correlation between the chip sampling and the values obtained from diamond drilling are comparable. Before 2006, muck samples were taken on a daily basis by the Geology Department from every working place in order to maintain grade control. Since January 2007, muck samples are taken by miners. Since February 2008, muck sampling in the stopes has been stopped as systematic sampling (1 sample every 40 tonnes) is being carried out at the mill feeder. Once a month, reconciliation is performed analyzing the assays of the development headings and stopes compared with the results from the mill in order to adjust the stope results. The results are then compared with the mineral reserves for the respective areas for reconciliation.
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13.0
Sample Preparation, Analyses and Security
Assay samples collected from surface diamond drill holes drilled prior to commencement of mining were assayed at independent laboratories for zinc, copper, silver and gold. Assaying procedures used for those samples were not available for review. According to the initial feasibility study completed on the project by Cambior Inc. in 1994, historical samples were assayed at the Techni-lab Laboratory (Techni-Lab) located in Ste-Germaine-de-Boul, Qubec. At the time the assays were performed, this laboratory was not accredited. Zinc, copper, lead and silver assays were conducted by acid digestion followed by atomic absorption spectrometry. Gold assays were performed using standard fire assay protocols on 30 gram charges. Specific gravity was measured by the immersion volumetric method on half core samples. After commencement of mining in 1995, all assay samples collected from drilling and underground chip sampling were prepared and assayed by the unaccredited Langlois mine laboratory operated under the supervision of a certified chemist. The laboratory used written standardized preparation and assaying procedures which included regular check assay programs at umpire laboratories. After re-opening the mine in October 2006, the Langlois laboratory continues to prepare and analyze all drill hole, chip and muck samples from the mine. Up to December 2009, the Langlois lab was still not accredited. Assay samples are dried in an oven heated at 110 degrees Celsius. Dried samples are coarsely crushed to 6mm. A sub-sample is pulverized in a jaw crusher to 80 percent passing a -200 mesh screen. The jaw crusher is thoroughly cleaned between samples. Occasionally, samples are pulverized using a ring crusher. Zinc, copper, lead, and silver assays are performed by multi-acid digestion followed by atomic absorption spectrometry on approximately 500 milligrams charges. Gold assays are performed by standard fire assay procedures followed by atomic absorption of 15 gram charges. Surface core samples sent for assaying were initially routinely assayed for zinc, copper, silver, lead and gold. After commencement of mining, underground samples from Zone 3 and Zone 4 were not assayed for gold. Instead, gold tenors for development areas were derived from average milling data. In January 1998, systematic lead assaying was discontinued. Samples from only one in ten definition drill holes were assayed for lead in Zone 3 and Zone 4. In Zone 97, all samples were assayed for gold and lead, in addition to zinc, copper and silver. Since December 2006, all drill hole and chip samples are analyzed for zinc, copper, silver, lead and gold. Due to the limited capacity at the Langlois laboratory, the gold assays are performed by Techni-Lab. Muck samples from mining activities are not analyzed for gold. Specific gravity data is also collected on all core and chip samples submitted for assaying at the mine laboratory by immersion volumetric method. After the closure of the mine in November 2000, the Company conducted additional drilling in Zone 97 during 2001 and 2003. Core assay samples collected by the Company were submitted to Techni-Lab for assaying. Zinc, copper, lead and silver were assayed by acid digestion followed by atomic absorption spectrometry. Gold was assayed by standard fire assay with atomic absorption finish on 30 gram charges.
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There are no records of quality control measures implemented during the collection of historical surface drilling data. In 1994, Cambior reported that for historical assay samples submitted to Techni-Lab, each batch of 24 samples contained one certified reference material sample, one sample blank and one pulp duplicate, inserted by the laboratory for internal control measures. Also, replicate assays were performed on all samples grading above five percent zinc. The assay data for these control samples were available for review. It is not known if external control samples were inserted within the sample stream submitted for assaying. As part of the 1994 feasibility study, Cambior submitted 69 duplicate pulp samples of various grades for re-assaying at Techni-Lab and also at Cambiors unaccredited assay laboratory at the Yvan Vezina mine, located in Rouyn-Noranda. A comparison of pulp check-assay results reported by Cambior indicates that original zinc assays could be reproduced very well from the same pulp by Techni-Lab, while the Yvan Vezina assays appear to have reported slightly more conservative zinc grades as indicated in Figure 13-1.
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Figure 13-1 - Charts Comparing Zinc Check Assay Data Collected by Cambior in 1994 Top. Yvan Vezina Laboratory Assay Data, Bottom. Techni-Lab Re-Assay Data.
Comparison of Zinc Check Assays (Cambior 1994 data)
40
Zinc Check Assay, Y. Vezina Lab (Percent)
N = 69
35
30
y = 1.0538x R2 = 0.992
25
20 15
10
0 0 5 10 15 20 25 30 35
Original Zinc Assay, Techni-Lab (percent)
Comparison of Pulp Zinc Check Assays (Cambior 1994 data)

35
Zinc Re-assay at Techni-Lab (percent)
30
25
20
15
N = 69
10
0 0 5 10 15 20 25 30 35
Original Zinc Assay, Techni-Lab (percent)
After commencement of mining, the geology department and the mine assay laboratory implemented comprehensive quality control measures designed to verify, monitor and assess the quality and reliability of exploration and mining data. These written procedures concern all aspects of the sampling process including drilling planning, monitoring, surveying, core description and sampling, assaying and data management. In the feasibility study, SRK considered that the measures taken by mine personnel represent adequate safeguards ensuring the
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reliability of exploration and mining data. After re-opening the mine in 2006, the geology department continued to use these written procedures, and in addition, added a few more procedures concerning three dimensional data management using Gemcom. After the reopening of the mine in October 2006, mine laboratory specific quality control measures were implemented to ensure the reliability of assaying data. With each batch of 24 samples submitted by the geology department for assaying at the mine laboratory, three of five standard reference material samples (two of which are certified) are inserted in the sample stream, one at the beginning, one in the middle and one at the end of the sample batch. One pulp duplicate and one sample blank are also inserted within each 24-sample batch. During 2008, 1,398 standard reference material samples, 699 duplicates (internal reassays) and 699 blanks have been analyzed at Langlois lab as per the QA/QC program. Figures 13-2 to 13-4 show good accuracy and correlation in all cases. Figure 13-2 - Bias Charts Comparing IRM 2008
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Figure 13-3 Bias Charts Comparing Duplicated Pulp at Langlois Lab in 2008
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Figure 13-4 Bias Charts Comparing Blanks at Langlois Lab in 2008
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In the past, a random selection of sample pulps was also submitted to one of two umpire laboratories for check assaying. Typically approximately five percent of all samples assayed are randomly selected for check assaying. In addition, on a monthly basis the mine assay laboratory also submitted a selection of ten samples to two umpire laboratories for check assaying. Umpire laboratories assayed each sample twice for zinc, copper, lead, silver and gold. The results of the check assays were constantly monitored for consistency. In 2000, 81 samples were re-assayed at Techni-Lab and X-Ral Laboratory located in Rouyn-Noranda. SRK reviewed check assay data collected by the mine laboratory during 2000 and concluded that the mine laboratory reported accurate assay results. During 2008, following the same procedure as above, 217 pulp samples and 250 reject samples were re-assayed at Techni-Lab and ALS Chemex. Results shown in Figures 13-5 to 13-8 are similar to those obtained in 2000.
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Figure 13-5 - Bias Charts Comparing Zinc External Check Assay Data Pulp Collected by Breakwater in 2008
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Figure 13-6 - Bias Charts Comparing Copper External Check Assay Data Pulp Collected by Breakwater in 2008
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Figure 13-7 - Bias Charts Comparing Silver External Check Assay Data Pulp Collected by Breakwater in 2008
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Figure 13-8 - Bias Charts Comparing Zinc Check Assay Data Rejects Collected by Breakwater in 2008
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14.0
Data Verification
During the preparation of the Langlois Mine Feasibility Study, SRK Consulting reviewed the sampling and assaying procedures and the extensive quality control and quality assurance program implemented by the Company. SRK was of the opinion that the drill hole and assay databases are reliable for mineral resource estimation. Although verification sampling was not completed by SRK, numerous drill cores were examined to compare the recorded geology and mineralization with the assay grades. In addition, SRK reviewed reconciliation data accumulated by the mine since 1995. Reconciliation data examined by SRK indicated a generally good agreement between tonnages and grades forecasted by the resource model and production from the mill. As part of the verifications, SRK audited the exploration database maintained by the Company. This review did not uncover any material errors in the digital database, and therefore SRK concluded that the drill hole and assay databases are reliable for mineral resource estimation. During 2007, a review of all existing data, including drill holes, underground openings and chip samples was carried out by the Company in order to re-interpret all of the deposits at the Langlois and Grevet B mines. For every drill hole or underground face, new intersects were generated and identified with their own vein number. As part of the verification, Scott Wilson Rosco Postle and Associates (SWRPA) audited all of the databases maintained by the Company and concluded that the databases and methods were reliable for resource estimation. SWRPA also defined or reviewed all parameters that were used for block model interpolation including the method (Inverse Distance Squared), variography, search ellipses and grade capping factors. Finally, the complete resource estimation process was audited and validated by SWRPA.
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15.0
Adjacent Properties
The Company holds majority interest in several mineral claims surrounding the Langlois mine lease. Previous operators and subsequently Breakwater have carried out extensive surface exploration drilling on these properties. For the purpose of this report, these adjacent properties are not considered material.
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16.0
Mineral Processing and Metallurgical Testing
The Langlois mill has a nominal capacity of 2,570 tonnes per day. During 2008, 514,444 tonnes were milled from all sources, including stockpiles. Zinc and copper concentrates are produced by differential flotation, with payable silver and a nominal amount of payable gold recovered in the copper concentrate.
Figure 16-1 - Mill Flowsheet
Mineralized material from the satellite deposits is crushed in a portable jaw crusher installed on surface. Material from Zones 3, 4 and 97 is sized underground through a 0.3 metre grizzly. The material is then sent to the grinding circuit, which consists of an open circuit SAG mill and a ball mill in closed circuit with cyclones. The grinding circuit cyclone overflow feeds the copper flotation circuit, where SO2 is added to modify the pH and to depress the pyrite. The copper flotation circuit includes a conventional rougher, scavenger and three cleaner flotation stages. A single regrind mill is available but to date has not been required in either the copper or zinc cleaning circuits. The final copper concentrate is then pumped to the copper thickener and stock tank. The copper first cleaner tailings and copper scavenger tailings are pumped to the zinc flotation circuit where they are conditioned in two tanks with lime to increase pH and depress the pyrite and copper sulfate to activate the zinc mineral, sphalerite. The zinc flotation circuit includes roughers, scavengers and three cleaner flotation stages. The tailings from the zinc scavenger and
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zinc first cleaner scavenger constitute the final mill tailings and are pumped to the tails thickener to be used as backfill underground or otherwise for disposal in the tailings management facility. The zinc third cleaner concentrate is pumped to the zinc thickener. Underflows from the zinc and copper thickeners are separately pumped to storage tanks and then batch filtered. The filtered concentrates are then conveyed to their respective loading areas. A storage building is annexed to the filter area/loading station for storage of final concentrates and loaded using a front-end loader when railcars are received. Most of the tailings pond effluent overflow is recycled as mill process water.
16.1
Tailings Disposal
The mill tailings not used for paste backfill underground (approximately 50 percent) are discharged subaqueously to a two square kilometre tailings impoundment. Impoundment retaining dykes consist of constructed sand and gravel masses with slope protection composed of clean, non-acid generating mine rockfill. Seepage control within the dykes is achieved with a low permeability geosynthetic clay liner (thin layer of bentonite sandwiched between two layers of geotextile). The pond is located three kilometres away from the mine site. The pond will require a raise in Year 4 to accommodate the mined tonnage. Water from the impoundment is recycled back to the mill for use in mineral processing. A portion of the tailings pond effluent is released to the Wedding River after treatment in accordance with regulations.
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17.0
Mineral Resources and Mineral Reserve Estimates
The mineral resource and mineral reserve estimates have been classified in accordance with the CIM Standards on Mineral Resources and Reserves Definitions and Guidelines adopted by the CIM Council on August 20, 2000, that classifies the mineral resources into measured, indicated and inferred categories and mineral reserves into proven and probable categories. The effective date of the Companys mineral reserves and mineral resources estimate for Langlois is December 31, 2009. The 2009 estimated measured and indicated mineral resource and the estimated inferred mineral resource were prepared under the supervision of Torben Jensen, P.Eng., who is employed by the Company as Vice President, Engineering and who is a Qualified Person under NI 43-101. The mineral resources and mineral reserves at Langlois and Grevet B mines are estimated utilizing 3D block models using the information from diamond drilling and underground chip sampling across development faces. For each drill hole intersection and underground face sample, intersects were generated and identified with their own vein number. Based on mining method and design, a variable minimum mining width was considered to define each intersect used in the resource estimate. A 3D wire frame model was constructed for each sulphide zone and then a block model was constructed based on this interpretation. Block model dimensions are 5 metres high by 5 metres long by 1 metre wide which reflects the elongated narrow lenses. Limits of each zone were determined visually on plan views and vertical sections based on geology, underground openings, sulphide abundance and mineralogy. An arbitrary lower zinc cutoff was not used for determining the limits of the zones. Assay data for zinc, copper, silver, gold and lead are density-weighted and composited in one metre increments over the true thickness intersect of each zone. Variography analysis and 3D block model interpolation was performed on the one metre composites for all elements. Langlois and Grevet B contain nine different lenses and each one has been statistically treated as a specific geological domain. Grades for individual blocks in the model have been defined by inverse distance square interpolation using a minimum of two samples and a maximum of 12. Variography analysis was carried out and search ellipses were defined for each lens. According to a statistical review of all tagged assays, capping of the zinc, copper, silver, gold and lead has been applied on assays and then extrapolated to one metre composites. Each lens has a specific cut off for drill hole and chip assays. Drill holes or underground samples that did not intersect the entire width of the mineralized zone were discarded from the calculation. The Langlois and Grevet B mineralization contains significant values for three elements: zinc, copper and silver. An NSR value is determined for each metal unit. These metal units are then used to calculate the NSR value of each interpreted block while determining the resource estimates. Zinc, copper, and silver grades of each block have been converted into dollar values based on the smelter parameter. The minimum mining width used for interpretation of the lenses at Grevet B is 2.0 metres. For Langlois, the minimum mining width used was 3.0 metres in Zones 1 to 4 and 2.2 metres in Zone 97 Main, North and South. All lenses were interpreted from drill holes, chip samples and underground development projected on various level plans from surface to 800 metres depth and
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transversal sections were developed every 10 or 15 metres over a strike length of about 2,000 metres. Table 17-1 - Langlois Mine Measured & Indicated Mineral Resources
December 31, 2009 Zn (% ) Cu (% ) 8.46 0.48 8.47 0.35 13.02 0.91 8.65 0.60 9.42 0.56 Zn (% ) 7.54 7.31 11.79 10.44 Zn (% ) 8.11 7.80 11.97 8.65 10.07 Cu (% ) 0.37 0.32 0.86 0.70 Cu (% ) 0.44 0.33 0.87 0.60 0.65
Measured Resources Zone 3 Zone 4 Zone 97 Grevet B Total Indicated Resources Zone 3 Zone 4 Zone 97 Grevet B Total Measured & Indicated Resources Zone 3 Zone 4 Zone 97 Grevet B Total
Tonnes 1,524,000 282,000 498,000 94,000 2,398,000 Tonnes 955,000 381,000 2,925,000 4,261,000 Tonnes 2,479,000 663,000 3,423,000 94,000 6,659,000
Ag (g/t) 33.2 38.0 69.6 23.6 40.9 Ag (g/t) 33.7 36.4 58.7 51.1 Ag (g/t) 33.4 37.1 60.3 23.6 47.4
Au (g/t) 0.05 0.07 0.09 0.04 0.06 Au (g/t) 0.05 0.11 0.09 0.08 Au (g/t) 0.05 0.09 0.09 0.04 0.07
Note: Measured and Indicated Resources Include Proven and Probable Reserves
Table 17-2 - Langlois Mine Inferred Mineral Resources

Inferred Resources Zone 3 Zone 4 Zone 97 Zone 5 Grevet B Total Tonnes 233,000 8,000 1,021,000 281,000 1,543,000 December 31, 2009 Zn (% ) Cu (% ) 7.19 0.28 5.55 0.31 8.79 0.72 5.80 0.12 7.99 0.54 Ag (g/t) 40.8 31.6 50.8 21.0 43.8 Au (g/t) 0.05 0.03 0.10 0.07 0.09
17.1
Conversion of Mineral Resources to Mineral Reserves
The mineral reserves are estimated by applying mining recovery and dilution to the measured and indicated resources. Minimum mining widths are applied including 3.0 metres for Zones 3 and 4, 2.2 metres for Zone 97 and 2.0 metres for Grevet B. The mineral reserves consist of contiguous zones of mineralization delineated in the geological model, while isolated areas were not included. The mineral reserves for Zones 3 and 4 are based on the mining method selected for developed and undeveloped areas. Where stope development already exists, stope dimensions will remain
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30 metres in height. For the portions of Zones 3 and 4 that are not yet developed, sublevel spacing will be reduced to 20 metres. In Zone 97 sublevel spacing will be 11 metres (14 metres floor to floor). All stopes will be mined in a retreating sequence and will be accessible by ramp. Table 17-3 - Langlois Mine Proven & Probable Mineral Reserves
Proven Reserves Zone 3 Zone 4 Zone 97 Grevet B Total Probable Reserves Zone 3 Zone 4 Zone 97 Grevet B Total Proven & Probable Reserves Zone 3 Zone 4 Zone 97 Grevet B Total Tonnes 804,000 167,000 438,000 61,000 1,470,000 Tonnes 814,000 268,000 2,543,000 3,625,000 Tonnes 1,618,000 435,000 2,981,000 61,000 5,095,000 December 31, 2009 Zn (% ) Cu (% ) 7.58 0.38 7.75 0.31 11.05 0.82 8.45 0.33 8.67 0.50 Zn (% ) 7.72 6.58 11.18 10.06 Zn (% ) 7.65 7.03 11.16 8.45 9.66 Cu (% ) 0.45 0.30 0.84 0.71 Cu (% ) 0.42 0.30 0.84 0.33 0.65 Ag (g/t) 29.1 32.8 59.2 23.7 38.3 Ag (g/t) 30.9 33.3 54.4 47.6 Ag (g/t) 30.0 33.1 55.1 23.7 44.9 Au (g/t) 0.04 0.07 0.09 0.04 0.06 Au (g/t) 0.06 0.06 0.09 0.08 Au (g/t) 0.05 0.06 0.09 0.04 0.07
Because of the highly variable width of mineralization in all zones (especially in Zone 97 and Grevet B), a dilution chart was generated in order to apply more realistic dilution according to the width variability of the lenses. Dilution for individual blocks in the model has been derived by multiplying interpolated thickness by dilution width. This method is about the same as constructing a skin, or layer adjacent to the mineralized zone to calculate dilution. It is more accurate than a global dilution factor that ignores geometry and assumes a constant dilution percentage over mineralized zones of variable thickness. A thickness of over-break equivalent to 50cm off of each wall has been assumed with a minimum mining thickness from 2.0 to 3.0 metres. Dilution, defined as the volume of waste recovered as a percentage of the mineralized material removed, has a density of 2.75 tonnes per cubic metres and a grade of zero and is estimated to be 25 percent by volume (approximately 18 percent - 20 percent by tonnage) for Zone 3, 36 percent for Zone 4, 25 percent for Zone 97 and 23 percent for Grevet B. In all cases, dilution is never assumed to be less than one metre. The higher dilution rate (1.0 to 1.5 metre) for Zone 4 is related to ground conditions, where sheared, chloritic host rocks often account for excessive dilution. Internal dilution is accounted for during the initial identification of intersects within the minimum mining width. That dilution is included in the composited grades. The one metre dilution discussed here is applied above the internal dilution. Anticipated dilution and recovery for the planned mining method and stope dimensions for Zones 3 and 4 fits the historic mining information. The dilution and recovery for Zone 97, excluding pillars is comparable to the historical rates realized in Zones 3 and 4.
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Zone 97 will be mined using an overhand benching method of stoping. Stope dimensions are planned at 11 to 16 metres high and, on average, 45 metres in strike length. The average zone width is approximately 3.1 metres. Stope sequencing will be in a retreat fashion to the central access cross cut provided at each sublevel. The reduced stope height is designed to control dilution while allowing long, yet stable stope dimensions. The longer strike length provides for more continuous mining operations, such as drilling, with less moving between work places. Ramp access is planned, as is backfilling with cemented paste fill. Recovery, excluding pillars, is expected at 95 percent for all zones. Some pillars left in the mine before 2006 have been included in the reserve category after analyzing the possibility of recovering them. There is only one mining pillar located along level 9 in Zone 97 and it is five metres high. The mineral reserves and the production schedule do not include any of the tonnage within this pillar. Typically, drilling data is spaced at approximately 40 metres in Zone 97 except between levels 8 and 9 (i.e. 60 metre level spacing), where the spacing is 20 metres. This is considered to be an adequate drilling density for delineating the zones of sulphide mineralization; however, this drilling is not sufficient to predict the occurrence of numerous mafic dikes that occur within the mineralized zones and late stage faults that transect the mineralization. As such, additional drilling will be required for Zone 97, and for a portion of Zones 3 and 4 to obtain sufficient data density before final stope design can be completed.
17.2
Metal Price Assumptions
For the December 31, 2009 mineral reserves estimates, metal prices, including premiums, used to determine economic viability for Zones 3, 4 and 97 and Grevet B were US$1.00/lb. zinc, C$/US$ exchange rate of 1.12, US$700/oz. gold, US$12.55/oz. silver, US$2.66/lb. copper and US$0.83/lb. lead. The metal prices used represent the approximate historical five year average for each metal from 2005 to 2009. Only metal prices for zinc, copper and silver were used to determine the NSR value of the various blocks. A cut-off NSR value of $85.00 per tonne has been used for all zones, including Grevet B.
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18.0
Other Relevant Data and Information
This section does not apply.
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19.0
Additional Requirements for Technical Reports on Development Properties and Production Properties
19.1
Mining Operations
The mining method initially implemented in 1996 at Langlois was transverse longhole stoping using 114 millimetres ITH drills with subsequent paste backfill. The level spacing was 60 metres high and mining blocks were 20 metres along strike and four to five metres thick. Remote operated scooptrams were used for mucking. Once terminated, the stopes were filled with highdensity paste backfill containing 78 percent solids. From the beginning, the mining operation experienced excessive dilution. This excessive dilution stemmed from the height of the stopes, the sericitization and chloritization of the joint sets and the wall erosion from the ore-passes. In 1997, Cambior, the original operator, made a decision to stop the operation and convert the 60 metre high stopes into smaller 15 or 30 metre high stopes depending on the width of the mineralization. Since re-opening the mine in 2006, the Company has further refined the mining method to reduce dilution. In the portions of Zone 3 where stope development already exists, longhole stope dimensions of 30 metres in height, and 64 millimetres (2.5 inches) diameter production drilling are maintained. The planned burden ranges from 1.4 metres to a 2.1 metres maximum and the spacing is a nominal 1.0 metre. For the portions of Zone 3 that are not yet developed, sublevel spacing will be reduced to 20 metres and production drilling will employ 64 millimetres (2.5 inches) diameter holes. All stopes are mined in a retreating sequence and will be accessible by ramp. Production mucking will be to orepasses. Stopes are filled with cemented paste backfill. Zone 4 longhole stope dimensions are 15 metres high by 20 metres strike length, using a retreating sequence. Ramp access will be provided to the sublevels. Tire-mounted, top hammer pneumatic longhole drills are used to drill 64 millimetre (2.5 inches) diameter holes approximately 15 metres in length. The burden is fixed at 1.2 metres and the nominal spacing of 1.0 metre varies according to the width of the mineralized material. The mined out stopes are filled with cemented paste backfill. For Zone 97, an overhand benching method of stoping has been applied. Stope dimensions are 14 metres open vertical span and, on average, 45 to 50 metres in strike length. The average zone width is approximately 3.0 metres. Stope sequencing will be in a retreating fashion towards the central access cross cut provided at each sublevel. Where the length of a sublevel is approximately 70 metres from its extremity to the central access cross cut, it will be divided into two stopes, with the second stope mined after backfilling the first stope. In Zone 97, tire mounted, top hammer pneumatic long hole drills drill 64 millimetres (2.5 inches) diameter holes of approximately 8.0 metres in length. The burden is fixed at 1.2 metres and the nominal spacing of 0.7 metres will vary according to the width of the mineralized material. All production mucking is performed by 3.5 and 4.0 yards scooptrams equipped with remote controls. Retreat mining is carried out in all areas, so each stope is mucked from one draw point oriented along strike.
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The stope and drift rounds are blasted using ANFO. Most of the holes are drilled down except in the extremities of the zone where no access is available above. All the blasting is done centrally. All backs and walls are screened with wire mesh. Rebars of 2.1 metres length are placed in the back on a 1.2 metre by 1.2 metre pattern. Resin bolts are used in the back to avoid corrosion of the ground support due to mildly acid mine water. The walls were bolted with 1.5 metres long split set bolts. Approximately 60 percent of the tailings are used as paste backfill. The paste backfill plant thickens and filters the mill tailings and then mixes these tailings with cement and water to make a paste that flows underground by gravity to Zone 3. The Company has installed two pumps and pipelines to deliver paste backfill to Zones 4 and 97. The actual capacity of the paste backfill plant is 75 tonnes per hour using only one of the two available disc filters. A main ventilation raise supplies 220,000 cubic feet per minute of fresh air to the mine. Exhaust is through the main production shaft and through a raise bore-hole in Zone 97. A new ventilation raise is currently being driven to supply additional ventilation to Zone 97. Primary dewatering pumps are multistage Mather and Platts. The average pumping rate is 100 US gallons per minute. The main pump stations are located on levels 13 and 16. In March 2006, the Company performed a small drilling program over the Grevet B deposit to verify past drilling and to better establish the continuity in the mineralization. Following the success of this program, the Company decided to extract a 15,000 tonne bulk sample to confirm spatial relationship and grade. The development of the Grevet B project was initiated starting mid-2006. In 2006, a total of 9,738 tonnes of mineralized material was extracted as part of a 15,000 tonne bulk sample program. In 2007 and 2008, a total of 86,874 and 140,868 tonnes of mineralized material respectively was extracted and hauled to the Langlois mill. At Langlois, during 2006, development was done mostly to access Zone 97 on levels 4, 9 and 13 and to develop the infrastructure referred to in the SRK feasibility study. Production also resumed gradually and a total of 60,117 tonnes of mineralized material was blasted and hoisted to surface and stockpiled. During 2007 and 2008, development drifts continue to be driven between Zone 3, Zone 4 and Zone 97 to the east on levels 4, 9 and 13. Ramp development from level 9 to access Zone 97 between level 9 and level 4 continued as well. Development of a decline to access Zone 97 between level 9 and level 13 commenced during the third quarter of 2007 and continued during 2008. Development of a new surface ramp commenced in early 2007, however, development of the ramp was terminated in 2008 in order to reduce capital costs. Commercial production was declared in July, 2007. At Langlois, a total of 351,000 tonnes of mineralized material was blasted and hoisted to surface and milled in 2007 and a total of 362,677 tonnes of mineralized material was blasted and hoisted to surface and milled in 2008. On November 2, 2008, the Company temporarily suspended operations at the Langlois mine. The operation is being maintained on a care and maintenance basis. The Company plans to restart the mine in the first quarter of 2012 following the completion of approximately 4,200 metres of development.
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19.2
Recoverability
The Langlois mill has historically produced a zinc concentrate in the range of 49.5 percent to 53.7 percent (during four previous years of operation from 1997 to 2000 and the latest operating period from November 2006 to November 2008) from head grades ranging from 6.4 percent to 8.3 percent zinc. The grade of the copper concentrate has been in the range of 18.7 percent to 24.0 percent. Recovery of zinc has been in the range of 82.2 percent to 93.6 percent and copper recovery has been in the range of 69.9 percent to 77.3 percent. Table 19-1 lists the operating parameters from 1997 2008 along with the metallurgical results. Table 19-1 - Metallurgy - Historical Production 1997 2008
1997 Production Tonnes Milled Head Grade Zn (%) Cu (%) Ag (g/t) Recoveries Zn (%) Cu (%) Ag (%) Conc. Grade Zn (%) Cu (%) Tonnes Conc. Zn (t) Cu (t) Tonnes Metal Zn (t) Cu (T) Ag (Oz) 261,068 6.4 0.4 29.1 92.6 75.1 43.7 52.7 21.3 29,181 3,322 15,382 709 90,914
1998
1999
2000
2006 59,373 8.3 0.5 41.0 82.2 72.1 29.2 49.5 19.3 8,201 1,078 4,057 208 22,855
2007 437,875 7.1 0.4 28.6 90.9 72.1 39.6 52.3 20.3 54,184 6,492 28,327 1,315 159,673
2008 514,444 8.1 0.5 35.5 92.5 77.3 51.0 53.7 18.7 71,868 10,661 38,620 1,994 298,863
414,742 402,224 310,466 6.5 0.3 26.7 93.3 73.6 35.4 52.9 24.0 47,770 4,198 7.5 0.4 28.8 93.6 69.9 30.1 52.0 21.6 54,397 4,739 7.9 0.4 31.4 92.8 70.6 30.9 52.7 22.3 43,287 3,589 22,792 800 96,976
25,281 28,280 1,009 1,,023 126,224 112,063
The zinc recovery in 2006 was low as the operation was in a start-up mode. Zinc recovery during 2008 has steadily improved with recovery averaging 92.5 percent. The same holds true for copper recoveries. Copper recovery during 2008 averaged 77.3 percent.
19.3
Markets
The zinc concentrate is loaded on Canadian National (CN) railcars directly at the mine site and transported to Xstrata Plc.s (Xstrata) CEZ smelter in Valleyfield, Qubec or to the HudBay Minerals Inc. smelter in Flin-Flon, Manitoba. Copper concentrate is sent by rail to Xstratas Horne smelter in Rouyn-Noranda, Qubec.
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19.4
Contracts
Contracts governing the sale of concentrate to customers are within market parameters. Most sales are on renewable contracts with terms ranging from three to five years. There are currently no hedging or forward sales contracts. There are currently no long-term arrangements in place covering the transportation of the concentrates.
19.5
Environmental Considerations
The mine operates under required Certificates of Authorization issued by the Qubec Ministry of Environment under the Loi sur la qualit de lenvironnement (L.R.Q., chapter Q-2). In addition, all approvals/leases required for land use (tailings pond, quarries and pits) have been issued by the Qubec Ministry of Natural Resources pursuant to the Loi sur les mines (L.R.Q., chapter M-13.1). Langlois holds a restoration plan (the Plan) that received approval from the Qubec Ministry of Natural Resources (in consultation with the Qubec Ministry of the Environment) in August 1996. The Plan was subsequently updated, as required, and resubmitted in 2005. This Plan consists of the following main elements: placing non-acid generating development rock underground and placing the acid-generating development rock under one metre of water in the tailings pond to avoid acid generation; directing surplus water through an alternate discharge spillway on the southeastern side of the pond; dismantling/demolishing and removing all surface infrastructure from the site; salvaging and removing any equipment and material that has value to another operation; disposing of any remaining hazardous materials off-site; and, re-contouring and re-vegetating the site with native species.
Due to the relatively small footprint of the site, the cost of reclamation is currently estimated to be $1.7 million.
19.6
Taxes
The Langlois operation is subject to federal income taxation of resource income at a rate of 21 percent. Provincial taxes at 10.95 percent as well as 12 percent Qubec Mining Duties also apply. The taxes are calculated after deducting appropriate cost allowances.
19.7
Capital and Operating Cost Estimates
Operating and capital costs were developed to coincide with the forecast production plan (Table 19-2). Projected operating costs are consistent with actual 2008 costs which are higher than historical numbers due to increases in labour costs, consumables and the use of contractors for a
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portion of the mine development and production. Significant increases have been made to staff wages in order to attract workers to the Langlois operation. Mill reagent costs have increased 25 percent to 35 percent since the decision was first made to re-open the mine, with the largest increase due to the price of copper sulfate. Increases have also been noted in fuel and lubricants due to the recent record high oil prices. The operating costs are expected to average $92.51 per tonne milled over the period. Langlois is going through a phase of capital commitment that will enable the mine to operate at least until the end of current mineral reserves.
19.8
Economic Analysis
A long-term plan has been developed that is based on mining and processing only the proven and probable reserves at a rate of up to 600,000 tonnes per annum. Table 19-2 shows the total forecast production for years one to 10. Table 19-2 Forecast Production: Years 1 10
Total M illed Tonnes Head Grades Zinc Copper Silver M ill Recoveries Zinc Copper Concentrate Prod. Zinc Copper Contained M etal Zinc Copper Silver
000 t % % g/t % % 000 t 000 t 000 t 000 t 000 oz
5,096 9.7% 0.7% 45 93.5% 80.0% 852.5 130.2 460.3 26.7 4,046
A financial model has been prepared based on the metal prices, currencies and treatment and refining charges listed in Table 19-3.
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Table 19-3 Long-Term Pricing Assumptions

Commodity Prices Zinc US$/lb. US$/t Copper US$/lb. US$/t Silver US$/oz Exchange Rate C$/US$ 1.00 2,205 2.66 5,864 12.55 1.12
Treatment Charges Zinc US$/t US$/t Copper Refining Charges Copper US/lb.
204 50 0.07
Projected total operating results for years one through 10 are summarized in Table 19-4. Table 19-4 Projected Operating Results: Years 1 10
Total Milled Tonnes Payable Metal Zinc Copper Silver
000 lb. 000 lb. 000 oz 000 t
5,096
862,648 55,960 3,720
Smelter Revenue Smelter Treatment Transportation Operating Cost Operating Cash Flow Mining Tax Capital Cashflow Cash Cost US$/lb./Payable Zinc Operating Cost/t Milled
(millions)
1,186 (232) (85) (471) 397 (2) (115) 280
$ $
0.541 92.51
The long-term plan estimates the production of 863 billion pounds of payable zinc, 56 million pounds of payable copper and 3,720,000 ounces of payable silver.
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The long-term plan is sensitive to metal prices, exchange rates, operating and capital costs, grade and smelter charges. Table 19-5 Sensitivities: Years 1 10
($C 000's)
Base Case A. M etal Price Zn Price Cu Price Zn+Cu Price Cash Cost $0.541 Cash Flow 280,419 NPV 7.5% 158,751 NPV 10% 134,232 NPV 12% 117,645
+ $0.10/lb - $0.10/lb + $0.10/lb - $0.10/lb + $0.10/lb - $0.10/lb + $0.05 US/Cdn - $0.05 US/Cdn
$0.555 $0.528 $0.535 $0.548 $0.548 $0.535 $0.564 $0.521
$350,522 $197,242 $286,624 $274,214 $355,765 $191,031 $242,035 $314,759
$206,181 $104,641 $162,853 $154,648 $209,760 $100,531 $133,691 $181,840
$176,579 $86,485 $137,859 $130,605 $179,774 $82,851 $112,109 $154,786
$156,452 $74,264 $120,946 $114,345 $159,381 $70,957 $97,539 $136,439
B. Exchange Rate
C. Cost Operating Cost Capital Cost 10% -10% 10% -10% $0.588 $0.494 $0.541 $0.541 $235,435 $320,567 $271,031 $289,792 $128,533 $186,612 $151,697 $165,791 $107,432 $159,156 $127,748 $140,704 $93,200 $140,521 $111,561 $123,718
D. Production Zn Grade Change Cu Grade Change 10% -10% 10% -10% $0.516 $0.573 $0.527 $0.556 $339,318 $213,789 $294,218 $266,604 $198,237 $115,415 $167,878 $149,612 $169,384 $95,994 $142,303 $126,152 $149,789 $82,905 $124,989 $110,292
E. Smelter Charges Zn Charges + $10/t con Cu Charges + $10/t con
$0.551 $0.543
$270,957 $278,975
$152,597 $157,796
$128,803 $133,389
$112,713 $116,878
19.9
Payback
The operating scenario depicted in Table 19-4 indicates that all future capital will be paid back.
19.10 Mine Life

Existing proven and probable mineral reserves are sufficient for at least 10 years of production. Being an underground operation, additional mineralization tends to be delineated as mining proceeds. There is potential for existing mineral resources to be converted to reserves as well as potential for additional new discoveries. Recent additions have been found by diamond drilling in the vicinity of existing reserves.
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20.0
Interpretation and Conclusions
Langlois has a major mineralized system comprising mineralized zones of many types and sizes, often of exceptional grade. The current property mineral reserves provide an estimated mine life of approximately 10 years if production is limited to the currently known areas. Sufficient additional tonnages are contained in the measured, indicated and inferred resource categories to potentially double the current mine life, however, exploration work must be conducted in the near future to determine the extent to which these mineral resources can be upgraded to mineable tonnages and to ensure these areas are developed for mining within the time frame of the current mine plan.
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21.0
Recommendations
Historically, a consistent and committed funding level for exploration programs resulted in successful identification of additional mineral reserves and resources and consequently added to the life of the mine. As stated earlier, there is potential to upgrade mineral resources and identify new deposits. To accomplish the foregoing it is recommended that the Company: complete a review of the potential for increasing mineral resources and reserves at Langlois; prepare and implement an exploration program based on such review; and initiate annual exploration programs.
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22.0
References
Gervais, D., February 1, 2009. Resources and Reserves Evaluation on December 31, 2008, Langlois Mine. Gervais, D., March 1, 2008. Langlois Mine. SRK Consulting, Feasibility Study. June 2003, Resources and Reserves Evaluation on December 31, 2007,
Langlois Mine, Lebel-sur-Quvillion, Qubec, 2CB003.02
SRK Consulting, May 14, 2003. An Independent Technical Report on the Mining Assets of Breakwater Resources Ltd.
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APPENDIX I List of Leases
Type BM BM BNE Surface Railway
Title No. 831 874 19812 815232 813008
Twp. Grevet Grevet Grevet Grevet Grevet
Area (Ha) 134.27 60.014 0.01 295 -
Title Breakwater Breakwater Breakwater
% 100 100 100
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APPENDIX II List of Claims

Type CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC NTS 1 32F01 32F01 32F01 32F01 32F01 32F01 32F01 32F01 32F01 32F01 32F01 32F02 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 NTS 2 Title No 16254 83837 83838 1105840 1105841 1105842 1123078 1123079 1123080 1123081 1123082 2032342 2032343 2032344 2032345 2032346 2046434 2046435 2046436 2046437 2046438 2046439 2046440 2046441 2046442 2046443 2046444 2046445 2046446 2046447 2128860 2128861 2128862 2128863 2128864 2128865 2128866 2128867 2128868 2128869 2128870 2128871 2128872 2128873 2128874 2128875 2128876 2128877 2128878 2128879 2128880 2128881 2128882 2128883 2128884 2128885 2128886 2128887 2128888 Area (Ha) 56,23 56,25 56,25 56,24 56,24 56,24 56,24 56,24 56,24 56,24 56,24 56,21 56,19 56,19 56,19 56,17 56,18 56,18 56,18 56,18 56,18 56,18 56,17 56,17 56,17 56,17 56,17 56,17 56,17 56,17 56,32 56,32 56,32 56,32 56,31 56,31 56,31 56,31 56,31 56,31 56,3 56,3 56,3 56,3 56,3 56,3 56,3 56,29 56,29 56,29 56,29 56,29 56,29 56,29 56,29 56,26 56,26 56,26 56,26 Titleholder(s) (Name, Number and Percentage) Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 %
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Type CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC
NTS 1 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02 32F02
NTS 2
Title No 2128889 2128890 2128891 2128892 2128893 2128894 2128895 2128896 2128897 2128898 2128899 2128900 2128901 2128902 2128903 2128904 2128905 2128906 2128907 2128908 2128909 2128910 2128911 2128912 2128913 2128914 2128915 2128916 2128917 2128918 2128919 2128920 2128921 2128922 2128923 2128924 2128925 2128926 2128927 2128928 2128929 2128930 2128931 2128932 2128933 2128934 2128935 2128936 2128937 2128938 2128939 2128940 2128941 2128942 2128943 2128944 2128945 2128946 2128947
Area (Ha) 56,26 56,26 56,26 56,26 56,26 56,25 56,25 56,25 56,25 56,25 56,25 56,25 56,25 56,25 56,24 56,24 56,24 56,24 56,24 56,24 56,24 56,24 56,24 56,23 56,23 56,23 56,22 56,22 56,21 56,21 56,21 56,2 56,2 43,61 56,2 29,54 11,91 12,05 12,63 11,72 11,94 12,71 5,89 20,37 29,81 56,32 12,12 56,31 44,12 56,3 56,3 56,3 42,72 56,29 56,29 56,29 29,32 15,44 7,6
Titleholder(s) (Name, Number and Percentage) Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 %
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NTS 2
Title No 2128948 2128949 2128950 2128951 2128952 2128953 2128954 2128955 2128956 2128957 2128958 2128959 2128960 2128961 2128962 2128963 2128964 2128965 2128966 2128967 2128968 2128969 2128970 2128971 2128972 2128973 2128974 2128975 2128976 2128977 2128978 2128979 2128980 2128981 2128982 2128983 2128984 2128985 2128986 2128987 2128988 2128989 2128990 2128991 2128992 2128993 2128994 2128995 2128996 2128997 2128998 2128999 2129000 2129001 2129002 2129003 2129004 2129005 2129006
Area (Ha) 47,18 56,29 56,29 56,29 5,76 56,28 56,28 56,28 56,28 56,28 27,81 45,43 32,03 56,27 56,27 56,27 56,27 56,27 42,93 35,85 56,27 56,27 56,27 56,27 56,26 56,26 56,26 56,26 56,26 56,26 56,26 56,26 56,26 56,26 56,26 56,26 56,26 56,25 56,25 56,25 56,25 56,25 56,25 56,25 56,25 56,25 56,25 56,25 56,25 56,25 56,25 56,25 56,25 56,25 56,24 56,24 56,24 56,24 56,24
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NTS 2
Title No 2129007 2129008 2129009 2129010 2129011 2129012 2129013 2129014 2129015 2129016 2129017 2129018 2129019 2129020 2129021 2129022 2129023 2129024 2129025 2129026 2129027 2129028 2129029 2129030 2129031 2129032 2129033 2129034 2129035 2129036 2129037 2129038 2129039 2129040 2129041 2129042 2129043 2129044 2129045 2129046 2129047 2129048 2129049 2129050 2129051 2129052 2129053 2129054 2129055 2129056 2129057 2129058 2129059 2129060 2129061 2129062 2129063 2129064 2129065
Area (Ha) 56,24 56,24 56,24 56,24 56,24 56,24 56,24 56,24 56,24 56,24 56,24 56,23 56,23 56,23 56,23 56,23 56,23 56,23 56,23 56,23 56,23 56,23 56,23 56,23 56,23 56,23 56,23 56,23 56,23 56,23 56,22 56,22 56,22 56,22 56,22 56,22 56,22 56,22 56,22 56,22 56,22 56,22 56,22 56,22 56,22 56,22 56,22 56,22 56,21 56,21 56,21 56,21 56,21 56,21 56,21 56,21 56,21 56,21 56,21
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Type CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL
NTS 2
Title No 2129066 2129067 2129068 2129069 2129070 2129071 2129072 2129073 2129074 2129075 2146253 2146254 2146255 2146256 3658811 3658812 3658821 3658822 3658841 3658842 3723543 3723545 3723551 3723552 3723553 3804543 3804544 3804545 3804571 3804572 3804573 3804703 3804704 3804705 3804714 3804715 3804725 3804734 3804735 3808374 3808375 3808401 3808402 3808403 3808404 3808405 3808415 3820143 3820144 3820145 3820151 3820153 3820154 3820155 3820161 3820162 3820172 3820173 3820174
Area (Ha) 56,21 56,21 56,21 56,21 56,21 56,2 56,2 56,19 56,19 41,93 56,31 56,31 56,3 56,24 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 9 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 15 17 16
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Type CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL
NTS 2 32F01 32F01 32F01
32F02
32F02
Title No 3820182 3820183 3820184 3820205 3820211 3820212 3820252 3820253 3820254 3820255 3820261 3820264 3820265 3820271 3820272 3820273 3820301 3820302 3820303 3820304 3820305 3820313 3820314 3820315 3820321 3820322 3820335 3822662 3822663 3822664 3822665 3822695 3822781 3822811 3822812 3822813 3822814 3822821 3822822 3822823 3822831 3822834 3822835 3822843 3822844 3822845 3822853 3828132 3828133 3828134 3828135 3828171 3828184 3828185 3828344 3828345 3828351 3828352 3923651
Area (Ha) 16 17 15 15 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 10 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 4,48
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NTS 2
32F01
32F01
32F02 32F02 32F02
32F02 32F02 32F02
Title No 3923652 3949531 3949532 3990521 3990522 3990523 3990524 3990525 3990535 3997341 3997351 3997352 3997361 3997362 4067453 4160873 4160874 4160875 4160881 4230874 4438275 4484461 4484462 4484463 4484464 4484465 4484671 4484672 4484673 4484674 4484675 4527871 4527872 4527873 4550401 4550402 4550403 4550404 4550411 4550412 4550413 4550414 4552202 4552203 4552204 4552215 4552221 4552222 4552225 4552232 4552233 4552234 4552235 4552492 4552493 4552494 4552562 4552563 4552564
Area (Ha) 4,09 9,68 16 16 16 16 16 16 16 0,18 16,06 16 0,51 15,85 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16
NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30%
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NTS 2
32F02
32F02 32F02 32F02 32F02
32F02
32F02
Title No 4552572 4552921 4552922 4552923 4552932 4552933 4552934 4552944 4552945 4552951 4552954 4552955 4703911 4703912 4703913 4703914 4703915 4703921 4703922 4703923 4703924 4703925 4703931 4703932 4703933 4703934 4703935 4703942 4703943 4703944 4703951 4703952 4703953 4703954 4703961 4703962 4703963 4703964 4703965 4703971 4703972 4703973 4703974 4703975 4704001 4704002 4704003 4704004 4704005 4704011 4704012 4704024 4704025 4704031 4704032 4704033 4704035 4704951 4704952
Area (Ha) 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 7,69 3,87 1,01 6,78 16 15,29 16 16 16 16 16 10,32 16 16,07 7,44 16 16 8,88 16 11,51 7,73 16 16 16 16 16 10,85 16 16 16 16 16 16 16 16 16 16 16 16 16 16
December 3, 2010
67
NTS 2
Title No 4704953 4704954 4704955 4704961 5011956 5011957 5011958 5011959 5011960 5011961 5011964 5012461 5012462 5012463 5012464 5012465 5012466 5012467 5012468 5012469 5012470 5012471 5012472 5012473 5012474 5012475 5012476 5012477 5012478 5012479 5012480 5012481 5012482 5012483 5012484 5012485 5012486 5012487 5012488 5012489 5012490 5012491 5012492 5012493 5012494 5012495 5013867 5013869 5013870 5013871 5013872 5013873 5013874 5013875 5013876 5013877 5013878 5013879 5013880
Area (Ha) 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16
NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30%
December 3, 2010
68
NTS 2
32F02 32F02
32F02 32F02 32F02 32F02
32F02
Title No 5013881 5013882 5013883 5013884 5013889 5013890 5013891 5013892 5013893 5013894 5013895 5013896 5013897 5013901 5013902 5013903 5013904 5013905 5013906 5013907 5013908 5013909 5013930 5013931 5013932 5013933 5013934 5013935 5013936 5013939 5013940 5013941 5013942 5013943 5013944 5013947 5013948 5013954 5013955 5013956 5013962 5013963 5013964 5013965 5013966 5013970 5013971 5013972 5013973 5013974 5013975 5013977 5013978 5014129 5015163 5016372 5016373 5016389 5016390
Area (Ha) 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16
NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30% NEXTAIR INC. (20958) 30%
December 3, 2010
69
NTS 2
Title No 5016391 5016392 5016401 5016408 5016409 5016410 5016411 5016412 5016413 5016414 5016415 5016416 5016417 5017021 5236611 5236612 5251251 5251252 5251253 5251254 5251255 5251256 5251257 5251258 5251259 5251260 5251261 5251262 5251263 5251264 5251265 5251266 5251267 5251268 5251269 5251270 5251271 5251272 5251273 5251274 5251275 5251276 5251277 5251278 5251279 5251280 5251281 5251282 5251283 5251284 5251285 5251286 5251287 5251288 5251289 5251290 5251291 5251292 5251293
Area (Ha) 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 11,4 16 16 16 16 16 16 16 16 16 4 16 16
December 3, 2010
70
NTS 2
32F02 32F02 32F02 32F02 32F02 32F02 32F02
Title No 5251294 5251295 5251296 5251297 5251298 5251299 5251300 5251301 5251302 5251303 5251304 5251305 5251306 5251307 5251308 5251309 5251310 5251311 5251312 5251313 5251314 5251315 5251316 5251317 5251318 5251319 5251320 5251321 5251322 5251323 5251324 5251325 5251326 5251327 5251328 5251329 5251330 5251331 5251332 5251333 5251334 5251335 5251336 5251337 5251338 5251339 5251340 5251341 5251342 5251343 5251344 5251345 5251346 5251347 5251348 5251349 5251350 5251351 5251352
Area (Ha) 16 16 16 16 16 16 16 16 16 16 4 16 16 16 16 16 16 16 16 16 16 8 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16
December 3, 2010
71
NTS 2 32F02 32F02 32F02 32F02
Title No 5251353 5251354 5251355 5251356 5251357 5251358 5251359 5251360 5251361 5251362 5251363 5251364 5251365 5251366 5251367 5251368 5251369 5251370 5251371 5251372 5251373 5251374 5251375 5251376 5251377 5251378 5251379 5251380 5251381 5251382 5251383 5251384 5251385 5251386 5251387 5251388 5251389 5251390 5251391 5251392 5251393 5251394 5251395 5251396 5251397 5251398 5251399 5251400 5251401 5251402 5251403 5251404 5251405 5251406 5251407 5251408 5251409 5251410 5251411
Area (Ha) 16 16 16 16 11,4 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16
December 3, 2010
72
NTS 2
Title No 5251412 5251413 5251414 5251415 5251416 5251417 5251418 5251419 5251420 5251421 5251422 5251423 5251424 5251425 5251426 5251427 5251428 5251429 5251430 5251431 5251432 5251433 5251434 5251435 5251436 5251437 5251438 5251439 5251440 5251441 5251442 5251443 5251444 5251445 5251446 5251447 5251448 5251449 5251450 5251451 5251452 5251453 5251454 5251455 5251456 5251457 5251458 5251459 5258066 5258067 5258068 5261845 5261846 5261847 5263304 5263305 5263306 5263307 5263308
Area (Ha) 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 15 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16
December 3, 2010
73
Type CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL CL
NTS 1 32F01 32F01 32F01 32F01 32F01 32F01 32F01 32F01 32F01 32F01 32F01 32F01 32F01 32F01 32F01 32F01 32F01 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F07 32F02 32F02 32F02 32F02
NTS 2
Title No 5263309 5263310 5263311 5263312 5263313 5263314 5263315 5263316 5263317 5263318 5263319 5263320 5263321 5263322 5263323 5263324 5263325 5263328 5263329 5263330 5263331 5263332 5263337 5263338 5263339 5263340 5263341 5263342 5263343 5263344 5263345 5263346 5263347 5263348 5263349 5263350 5269026 5269027 5269028 5269029 5270552 5270553 5270554 5270555 5270556 5270557 5270798 5270799 5270800 5270801 5270802 5272566 5272567 5272568 5272569
Area (Ha) 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16
Titleholder(s) (Name, Number and Percentage) Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 % Breakwater Resources Ltd (6436) 100 %
December 3, 2010
74
Breakwater Resources Ltd. Suite 950, 95 Wellington St. W. Toronto, Ontario M5J 2N7
Fax: 416-363-1315 Email: tjensen@breakwater.ca
CERTIFICATE of Author I, Torben Jensen, P.Eng., do hereby certify that: 1. I am Vice President, Engineering of: Breakwater Resources Ltd. Suite 950, 95 Wellington St. W. Toronto, Ontario M5C 2N7 I graduated with a diploma in Mining Engineering Technology from Haileybury School of Mines in 1975. In addition, I graduated with a diploma in Mining Engineering from the South Dakota School of Mines, Rapid City, South Dakota in 1978. I am licensed by Professional Engineers Ontario (PEO) since 1992. I have practiced my profession continuously since 1975. I have held positions in the mining industry in underground coal mining and both underground and surface metal mining in engineering, construction, operating and management roles including Chief Mining Engineer for Hillsborough Resources Ltd. (1985-1995), Manager of Engineering for Black Hawk Mining Inc. (1995-1997), Manager of Engineering and North American Exploration for Breakwater Resources Ltd. (1997-2003) and Vice President, Engineering for Breakwater Resources Ltd. (2003 - present). I have read the definition of qualified person set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as described in NI 43-101) and past relevant work experience, I fulfill the requirements to be a qualified person for the purposes of NI 43-101. I am responsible for the preparation of all sections of the technical report titled Langlois Mine, Lebel-sur-Quvillon, Qubec, NI 43-101 Technical Report and dated December 3, 2010, (the Technical Report) relating to the Langlois property. I have visited the property on an on-going basis from January 2000 to the present date to review geology, exploration, infrastructure and development. I have had prior involvement with the property that is the subject of the Technical Report. The nature of my prior involvement is a due diligence review in January 2000, when the property was originally for sale. I am not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the Technical Report, the omission to disclose which makes the Technical Report misleading. I am not independent of the issuer applying all of the tests in section 1.5 of National Instrument 43-101. I am currently an insider of Breakwater Resources Ltd.
2.
3. 4.
5.
6.
7.
8.
9.
December 3, 2010
75
10.
I have read National Instrument 43-101 and Form 43-101F1 and the Technical Report has been prepared in compliance with that instrument and form. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication by them for regulatory purposes, including electronic publication in the public company files on their websites accessible by the public, of the Technical report.
11.
Dated this 3rd day of December, 2010
Signed Torben Jensen
___________________ Torben Jensen, P.Eng., Vice President, Engineering Breakwater Resources Ltd.
December 3, 2010
76
Breakwater Resources Ltd. Suite 950, 95 Wellington St. W. Toronto, Ontario M5J 2N7
Tel.: 416-363-4798 Fax: 416-363-1315 Email: tjensen@breakwater.ca
Consent of Author
TO: British Columbia Securities Commission Alberta Securities Commission Saskatchewan Financial Services Commission, Securities Division The Manitoba Securities Commission Commission des valeurs mobilires du Qubec Office of the Administrator, New Brunswick Nova Scotia Securities Commission Registrar of Securities, Prince Edward Island Securities Commission of Newfoundland and Labrador Ontario Securities Commission Government of Yukon Government of Northwest Territories Government of Nunavut Toronto Stock Exchange
I, Torben Jensen, P.Eng., do hereby consent to the filing of the written disclosure of the technical report Langlois Mine, Lebel-sur-Quvillon, Qubec, NI 43-101 Technical Report and dated December 3, 2010 (the Technical Report), and to the filing of the technical report with the securities regulatory authorities referred to above. I also certify that I have read the written disclosure being filed and I do not have any reason to believe that there are any misrepresentations in the information derived from the Technical Report contains any misrepresentation of the information contained in the Technical Report.
Dated this 3rd day of December, 2010
Signed Torben Jensen
___________________ Torben Jensen, P.Eng., Vice President, Engineering Breakwater Resources Ltd.
December 3, 2010
77

Lang Lo Is Tech RPT

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Breakwater Resources Ltd.

Langlois Mine Lebel-sur-Quvillon, Qubec NI 43-101 Technical Report

Langlois Mine Technical Report

Langlois Mine Technical Report

Langlois Mine Technical Report

Langlois Mine Technical Report

25,281 28,280 1,009 1,,023 126,224 112,063

Langlois Mine Technical Report

Table 1-3 Forecast Production: Years 1 10

Langlois Mine Technical Report

Table 1-5 Projected Operating Results: Years 1 10

862,648 55,960 3,720

1,186 (232) (85) (471) 397 (2) (115) 280

Langlois Mine Technical Report

Cautionary Statement on Forward Looking Statements

Langlois Mine Technical Report

Introduction and Terms of Reference

Langlois Mine Technical Report

Langlois Mine Technical Report

Property Description and Location

Figure 4-1 - Langlois Mine, Location Map

Langlois Mine Technical Report

Langlois Mine Technical Report

Accessibility, Climate, Local Resources, Infrastructure and Physiography

Langlois Mine Technical Report

Langlois Mine Technical Report

Langlois Mine Technical Report

Langlois Mine Technical Report

Figure 7-2 - Geologic Map of the Langlois Mine Area

Langlois Mine Technical Report

Langlois Mine Technical Report

Langlois Mine Technical Report

FRESH AIR RAISE

Langlois Mine Technical Report

Langlois Mine Technical Report

Langlois Mine Technical Report

Langlois Mine Technical Report

Langlois Mine Technical Report

Sampling Method and Approach

Langlois Mine Technical Report

Langlois Mine Technical Report

Sample Preparation, Analyses and Security

Langlois Mine Technical Report

Langlois Mine Technical Report

Zinc Check Assay, Y. Vezina Lab (Percent)

Original Zinc Assay, Techni-Lab (percent)

Comparison of Pulp Zinc Check Assays (Cambior 1994 data)

Zinc Re-assay at Techni-Lab (percent)

Original Zinc Assay, Techni-Lab (percent)

Langlois Mine Technical Report

Langlois Mine Technical Report

Langlois Mine Technical Report

Langlois Mine Technical Report

Langlois Mine Technical Report

Figure 13-4 Bias Charts Comparing Blanks at Langlois Lab in 2008

Langlois Mine Technical Report

Langlois Mine Technical Report

Langlois Mine Technical Report

Langlois Mine Technical Report

Langlois Mine Technical Report

Langlois Mine Technical Report

Langlois Mine Technical Report