1208 Masbate 2008 NI 43

To CGA Mining
NI43-101 Technical Report, October 2008

Masbate Gold Project
Masbate Island, Philippines
Report number: LQS2008.014
Publish Date: 5th December, 2008
Authors: Daniel Tuffin, BEng, BSc, Dip.PM, MAusIMM

Anthony Keers, B.Eng (Mining,Hons), Dip. PM
Lower Quartile Solutions Pty Ltd

1311 Hay Street,
West Perth, WA 6005
Tel: +61 8 9467 7456
Fax: +61 8 9322 2886
NI43-101 TECHNICAL REPORT- MASBATE GOLD PROJECT
OCTOBER 2008
Certificate of Authors
Daniel Albert Tuffin. Daniel.Tuffin@LQSgroup.com
I, Daniel Albert Tuffin, BEng, BSc, Dip.PM, MAusIMM hereby certify that:
I am an independent Consulting Mining Engineer with my office at 1311 Hay Street, West Perth,
Western Australia 6005, Australia (telephone +61-8-9467-7456)
I have Bachelor’s Degrees in Science (Engineering and Mine Surveying) from the Western Australian
School of Mines and Engineering (Mining) from the University of Ballarat. Additional to this, I also hold
a Diploma in Project Management. I am a current member of the Australasian Institute of Mining and
Metallurgy (AusIMM), membership number 228649.
For the purposes of this Technical Report I am a Qualified Person as defined in National Instrument
43-101. I have read NI43-101F1 and Form 43-101F1, and this technical report has been prepared in
compliance with that instrument and form.
My most recent personal inspection of the Masbate property was in May 2008.
As of the date hereof, to the best of my knowledge, information and belief, the Technical Report
contains all scientific and technical information that is required to be disclosed to make the Technical
Report not misleading.
I consent to the public filing of the technical report with any stock exchange and other regulatory
authority and any publication by them for regulatory purposes of the Technical Report.
th
Dated at Perth this 5 day of December 2008.
Anthony James Keers. Anthony.Keers@LQSgroup.com
I, Anthony James Keers, BEng Hons, Dip.PM, MAusIMM hereby certify that:
I am an independent Consulting Mining Engineer with my office at 1311 Hay Street, West Perth,
Western Australia 6005, Australia (telephone +61-8-9467-7456)
I have a Bachelor’s Degree with Honours in Engineering (Mining) from the University of Queensland.
Additional to this, I also hold a Diploma in Project Management. I am a current member of the
Australasian Institute of Mining and Metallurgy (AusIMM), membership number 209571.
My most recent personal inspection of the Masbate property was in September 2008.
As of the date hereof, to the best of my knowledge, information and belief, the Technical Report
contains all scientific and technical information that is required to be disclosed to make the Technical
Report not misleading.
I consent to the public filing of the technical report with any stock exchange and other regulatory
authority and any publication by them for regulatory purposes of the Technical Report.
th
Dated at Perth this 5 day of December 2008.
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OCTOBER 2008
Contents
3 Executive Summary ........................................................................................................... 1
4 Introduction ........................................................................................................................ 3
5 Reliance on Other Experts ................................................................................................. 4
6 Property Description and Location ..................................................................................... 4
7 Accessibility, Climate, Local Resources, Infrastructure and Physiography ......................... 4
8 History................................................................................................................................ 4
9 Geological Setting .............................................................................................................. 4
10 Deposit Types .................................................................................................................. 4
11 Mineralization ................................................................................................................... 4
12 Exploration ....................................................................................................................... 5
13 Drilling .............................................................................................................................. 5
14 Sampling Method and Approach ...................................................................................... 5
15 Sample Preparation, Analyses and Security..................................................................... 5
16 Data Verification ............................................................................................................... 5
17 Adjacent Properties .......................................................................................................... 5
18 Mineral processing and Metallurgical Testing ................................................................... 5
19 Mineral Resource and Mineral Reserve ........................................................................... 5
19.1 Mineral Resource ...................................................................................................... 5
19.2 Mineral Reserve ........................................................................................................ 6
19.2.1 Block Model Preparation ..................................................................................... 6
19.2.2 Whittle Optimisation Parameters ......................................................................... 7
19.2.2.1 Slope Sets .................................................................................................... 7
19.2.2.2 Study Base Date ........................................................................................... 7
19.2.2.3 Initial Capital ................................................................................................. 7
19.2.2.4 Plant Capacity .............................................................................................. 7
19.2.2.5 Mining Limit .................................................................................................. 8
19.2.2.6 Processing Recovery .................................................................................... 8
19.2.2.7 Grade Cut-Offs ............................................................................................. 9
19.2.2.8 Mining Dilution .............................................................................................. 9
19.2.2.9 Mining Recovery ........................................................................................... 9
19.2.2.10 Commodity Price ........................................................................................ 9
19.2.2.11 Selling Costs............................................................................................... 9
19.2.2.12 Exchange Rate ........................................................................................... 9
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OCTOBER 2008
19.2.2.13 Discount Rate ............................................................................................. 9

19.2.2.14 Mining Costs ............................................................................................... 9
19.2.2.15 Processing Costs ...................................................................................... 10
19.2.3 Whittle Results .................................................................................................. 10
19.2.3.1 Main Vein ................................................................................................... 10
19.2.3.2 Colorado ..................................................................................................... 12
19.2.3.3 Holy Moses Basalt ...................................................................................... 14
19.2.3.4 Montana ..................................................................................................... 16
19.2.3.5 Combined Whittle Results........................................................................... 18
19.3 Sensitivity Analysis .................................................................................................. 20
19.4 Mine Design ............................................................................................................ 23
19.4.1 Geotechnical Constraints .................................................................................. 23
19.4.2 Ramp Design Parameters ................................................................................. 24
19.4.3 Staged Pit Designs ............................................................................................ 24
19.4.3.1 Main Vein ................................................................................................... 25
19.4.3.2 Colorado ..................................................................................................... 29
19.4.3.3 Holy Moses Basalt ...................................................................................... 31
19.4.3.4 Montana ..................................................................................................... 33
19.4.4 Dumps .............................................................................................................. 33
19.4.5 Voids ................................................................................................................. 34
19.5 Mineral Reserve ...................................................................................................... 34
19.6 Schedule ................................................................................................................. 35
20 Other Relevant Data and Information ............................................................................. 38
21 Interpretation and Conclusions ....................................................................................... 38
22 Recommendations ......................................................................................................... 38
23 References..................................................................................................................... 39
24 Date and Signature Page ............................................................................................... 40
25 Additional Requirements for Technical Reports on Development Properties and
Production Properties.......................................................................................................... 41
25.1 Unchanged Items from the 2006 Technical Report .................................................. 41
25.2 Power ...................................................................................................................... 41
25.3 Markets.................................................................................................................... 41
25.4 Contracts ................................................................................................................. 41
25.5 Mining Operations ................................................................................................... 41
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OCTOBER 2008
25.6 Capital Costs and Operating Costs .......................................................................... 42

25.7 Economic Analysis .................................................................................................. 42
25.8 Mine Life .................................................................................................................. 42
26 Illustrations ..................................................................................................................... 42
APPENDIX I: Block Model Preparation Script ..................................................................... 43
APPENDIX II: Complete Whittle Outputs............................................................................. 47
APPENDIX III: Production Schedule ................................................................................... 55
Tables
Table 1: Block Model Rock Codes for Whittle Optimisation ................................................... 6
Table 2: Mining Limits for each Area ..................................................................................... 8
Table 3: Processing Recoveries by Rock Code..................................................................... 8
Table 4: Mining Cost by Rock Code .................................................................................... 10
Table 5: Main Vein Whittle Results...................................................................................... 11
Table 6: Colorado Whittle Results ....................................................................................... 13
Table 7: Holy Moses Basalt Whittle Results ........................................................................ 15
Table 8: Montana Whittle Results........................................................................................ 17
Table 9: Whittle Results Summary – Shell Inventories ........................................................ 18
Table 10: Results from Sensitivity Runs .............................................................................. 20
Table 11: Comparison of Sensitivity Run Results ................................................................ 20
Table 12: Geotechnical Design Parameters ........................................................................ 24
Table 13: Main Vein Staged Pit Design Tonnes and Grade................................................. 25
Table 14: Colorado Staged Pit Design Tonnes and Grade .................................................. 29
Table 15: Holy Moses Basalt Staged Pit Design Tonnes and Grade ................................... 31
Table 16: Montana Staged Pit Design Tonnes and Grade .................................................. 33
Table 17: Mineral Reserves at the Masbate Gold Project .................................................... 35
Table 18: Masbate Production Schedule ............................................................................. 37
Table 19: Unchanged Items from 2006 Technical Report.................................................... 41
Figures
Figure 1: Masbate Gold Project Location Map....................................................................... 3
Figure 2: Main Vein Whittle Results Graph.......................................................................... 12
Figure 3: Colorado Whittle Results Graph ........................................................................... 14
Figure 4: Holy Moses Basalt Whittle Results Graph ............................................................ 16
Figure 5: Montana Whittle Results Graph............................................................................ 18
Figure 6: Whittle Pit Shells .................................................................................................. 19
Figure 7: Spider Graph of Key Parameters ......................................................................... 21
Figure 8: Discounted Pit Value Sensitivity Graph ................................................................ 22
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OCTOBER 2008
Figure 9: Pit Ore Tonnages Sensitivity Graph ..................................................................... 22

Figure 10: Pit Waste Tonnages Sensitivity Graph ............................................................... 23
Figure 11: Pushback Design Schematic Example ............................................................... 24
Figure 12: Main Vein Stage 1 .............................................................................................. 26
Figure 18: Colorado Stage 1 ............................................................................................... 29
Figure 21: Holy Moses Basalt Stage 1 ................................................................................ 31
Figure 24: Montana Stage 1 ................................................................................................ 33
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OCTOBER 2008
3 Executive Summary
Lower Quartile Solutions Pty Ltd (LQS) was commissioned by CGA Mining Limited (CGA) to
perform a review of the Bankable Feasibility Study conducted in 2006 by IMC Mining
Solutions Pty Ltd (IMC 2006 BFS) and to update the Total Mineral Reserve based on an
updated Mineral Resource model and economic factors.
Upon receiving the Mineral Resource model from Filminera Resource Corporation (Mineral
Resource Geology work carried out by Mining Associates Pty Ltd), the model was prepared
for Whittle optimisation. Using costs supplied by CGA (as detailed in Section 19.2.2) in the
Whittle optimisation and a gold sell price of US$750/oz, a set of pit shells were produced
which formed the basis of the pit design. The model was split into four areas before
importing into Whittle; this was done to accurately depict the mining schedule, in particular
mining three large, independent pits using three mining fleets capable of moving a total of
12Mtpa.
The geotechnical constraints used during the design phase were based on work conducted
for the IMC 2006 BFS. Much of this information is still relevant; however there are issues in
some areas due to the increase in pit size when compared to the IMC 2006 BFS work. It is
relevant to understand that previous mining has taken place and that all original ‘pitwalls’
remain in good condition and are stable. Detailed examination of the walls is not possible
due to revegetation. It is strongly recommended that as soon as possible following project
commissioning, a geotechnical review be carried out on all work completed during this study.
In saying this it is expected that any changes that may arise from a latter geotechnical
review will not cause significant changes to the overall Mineral Reserve stated in this report.
The total Mineral Reserve at the Masbate Project is 92 Mt at a grade of 1.0 g/t containing 3
Moz of Gold. This material is sourced from 3 major independent pits and a number of
smaller surrounding pits, with the average strip ratio (W:O) being 1.05:1. In the Mineral
Reserve Statement released on October 22, 2008, the tonnes and grade for each area was
labeled incorrectly. The overall tonnes and grade were correct, below is the table as it should
have read in the Mineral Reserve Statement.
Area Ore Grade Ounces

Tonnes
Main Vein 57,242,000 1.0 1,888,000
Colorado 22,967,000 1.0 736,000
Holy Moses Basalt 11,398,000 1.0 374,000
Montana 629,000 1.7 34,000
Total 92,236,000 1.0 3,032,000
Dumping of waste and low grade material (planned low grade/ high grade split in the first two
years of production) will play a significant role in the scheduling of this project. There is
limited surface area on which to dump waste within the existing mining lease boundary and
in-pit dumping could lead to potential sterilisation of ore should there be any changes to the
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OCTOBER 2008
Mineral Resource model or financial situation resulting in an increased Mineral Reserve in

the future.
Existing underground voids, a result of the previous mining operation could, also affect the
design and schedule. The information available to LQS at the time of this study was
sufficient in terms of size and location of major underground voids, however the geotechnical
conditions in these areas is not as well known. The Mineral Resource model has been
created to take a conservative approach to the material around these voids, with tonnes and
grade reduced, resulting in a possible slight upgrade to the Mineral Reserve should probe
drilling and or geotechnical holes highlight any discrepancies from the voids file created for
this purpose.
CGA has committed to an initial two year high grading period, where an elevated cut-off will
be used to determine the material fed to the mill. During this period all material above a cut-
off of 0.7g/t will be preferentially fed to the mill, any shortfall in the mill capacity will be made
up using the low grade material (0.4 – 0.7g/t). The remaining low grade material will be
stockpiled for later processing. The mill feed in the first two years will be at a rate of 4Mtpa at
an average grade of 2.0g/t.
Beyond the second year a bulk mining approach will be implemented to exploit the
remaining in situ Mineral Reserves. With the mill limit increasing to 5Mtpa the average feed
grade will fall to around 1.0g/t up to year 15. After YR 15 all in situ Mineral Reserves will be
exhausted and the low grade stockpile will begin to be fed into the mill if still financially
viable, which based on current knowledge of the area may extend the processing life to a
total of approximately 18.5 years.
For this project, the limiting process is the mill capacity. If future studies into the milling
capacity could be conducted and it is found that there is a possible expansion to the mill an
updated mining study would be highly recommended. Other potential studies could be to
investigate increasing the mining limit to maintain a high grade mill feed for as long as
possible, while stockpiling all low grade material; and continuing Mineral Reserve updates
following completed drilling programs.
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OCTOBER 2008
4 Introduction
Lower Quartile Solutions Pty Ltd (LQS) was commissioned by CGA Mining Limited (CGA) to
perform a review of a Bankable Feasibility Study conducted in 2006 by IMC Mining Solutions
Pty Ltd (IMC 2006 BFS) and to update the Total Mineral Reserve for the Masbate Gold
Project based on an updated Mineral Resource model and economic factors.
The Masbate Gold Project is located on the island of Masbate in the Philippines,
approximately 350km southeast of the capital Manila. Primary access to the mine site is by
the Samar Sea. Anthony Keers, the author of this report, visited the site on the 8th
September 2008 to gain a better understanding of the project and comply with NI43-101
standards.
Figure 1: Masbate Gold Project Location Map
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OCTOBER 2008
The primary focus of this study is to update the Total Mineral Reserve based on an updated
Gold price of US$750/oz; the IMC 2006 BFS used a Gold price of US$450/oz. Other
information that has been updated from the original study includes a slight increase in mining
costs from an average $1.80/t to $1.93/t and taking a slightly different approach in applying
the processing recovery.
As a result of this being an update to a previous study, there are several issues not
specifically covered in this report such as capital costs and mining fleet selection. The mining
fleet had been selected based on the IMC 2006 BFS and ordered prior to LQS undertaking
this study. Other capital costs for site infrastructure had already been finalised and
committed, the IMC 2006 BFS also covers these areas.
5 Reliance on Other Experts

Refer to - Technical Report on the Mineral Resources of the Masbate Deposit Masbate
Province, Republic of the Philippines, For CGA Mining Limited, 20 May 2008, Section 3
6 Property Description and Location

7 Accessibility, Climate, Local Resources, Infrastructure and

Physiography
8 History
9 Geological Setting
10 Deposit Types
11 Mineralization
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OCTOBER 2008
12 Exploration
13 Drilling
14 Sampling Method and Approach

15 Sample Preparation, Analyses and Security

16 Data Verification
17 Adjacent Properties
18 Mineral processing and Metallurgical Testing

19 Mineral Resource and Mineral Reserve

19.1 Mineral Resource
For all Mineral Resource estimates please refer to - Technical Report on the Mineral
Resources of the Masbate Deposit Masbate Province, Republic of the Philippines, For CGA
Mining Limited, 20 May 2008, Section 17.1
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OCTOBER 2008
19.2 Mineral Reserve

Due to the nature of the project having several distinct areas, the block model was split into
four areas, creating four models, each run in separate optimisations using the Whittle
Optimiser Software. The four areas are Main Vein (includes Binstar, Doris, Libra etc),
Colorado (includes Syndicate and Grandview), Holy Moses Basalt and Montana, all results
have also been reported by area.
19.2.1 Block Model Preparation

The Block Model “masbate20080502.mdl” was updated on several different occasions
throughout May 2008; each time a “new” model was received it was checked against the
other versions to ensure the most complete model was used. With the most complete model
selected, the following changes were made to the block model to make it suitable for use in
Whittle:
• All blocks not of Mineral Resource Category Indicated given zero grade
• Created a “rock” attribute which would be divided by area and rock type (primary,
transitional and oxide)
• Created a “zone” attribute that to give the option of differing slope wall angles in
Whittle optimisations depending on the area- ultimately this wasn’t used
• Main Vein given rock code in 100’s, Colorado 200’s, HMB 300’s and Montana 400’s
• Oxide given suffix in rock code of 1, Transitional 2, Primary 3 and dumps 0
• Waste values given rock code of 1, air given a value of 0
• Fill waste blocks with density- material given transitional ore density (2.35t/m3) above
100RL and primary ore density (2.5t/m3) below 100RL
Table 1: Block Model Rock Codes for Whittle Optimisation
Material Rock code
Air 0
Waste 1
Main Vein Dump 100
Main Vein Oxide 101
Main Vein Transitional 102
Main Vein Primary 102
Colorado Grand View Dump 200
Colorado Grand View Oxide 201
Colorado Grand View Transitional 202
Colorado Grand View Primary 203
HMB Dump 300
HMB Oxide 301
HMB Transitional 302
HMB Primary 303
Montana Oxide 401
Montana Transitional 402
Montana Primary 403
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OCTOBER 2008
A Surpac tcl script was used to perform the above work. This script can be viewed in
Appendix I.
The result of the above processes was an Engineering block model in Surpac format
covering the entire Masbate Gold Project “masbate20080903.mdl”. In order to get separate
block models for each individual area, the au_krig grade field was cleared to zero for all
blocks not in the area. For example, to create the Montana model, all blocks that didn’t have
a “Rock code” of 401, 402 or 403 were given zero grade, the au_krig field was left
unchanged for blocks with a rock code of 401, 402 or 403.
The names of the models used in Whittle were:
• mv_20.mod for Main Vein

• col_20.mod for Colorado
• hmb_20.mod for Holy Moses Basalt
• mon_20.mod for Montana
The Whittle optimisation was run using a block size of 20m x 20m x 10m (X,Y,Z). The block
size chosen was due to the model type, whereby the deposit contains a mixture of high
grade veins and lower grade stockwork and halo areas, with the model being estimated
using this block size. A secondary advantage of this is the reduced processing time.
19.2.2 Whittle Optimisation Parameters

The following pages explain the Whittle parameters used in the optimisation process
performed on the Masbate gold project.
19.2.2.1 Slope Sets

Slope set input parameters for Whittle were taken to be the same as the IMC 2006 BFS. The
slope set applied in that study and thus this update was a standard 50 degree wall angle
across the entire deposit.
19.2.2.2 Study Base Date

The Whittle optimisation phase of this study commenced in June of 2008 and all supplied
costs and revenues used and the resulting outputs must be referred to this date.
19.2.2.3 Initial Capital

No CAPEX costs were included in the optimisation and as such they do not influence the
selection of the optimal pit shell.
19.2.2.4 Plant Capacity

The plant capacity was set at 4,000,000 tonnes per annum for the first two years, increasing
to 5,000,000 tonnes per annum from year three onwards. These figures were supplied to
LQS by CGA.
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OCTOBER 2008
19.2.2.5 Mining Limit

A mining limit of 4,000,000 tonnes per annum per fleet was applied to the optimisation. It
was determined that for the Main Vein and Colorado pits, there would be on average two
fleets operating in each area at any one time, whereas the Holy Moses Basalt and Montana
areas could would have capacity for just one fleet. The mining limits used for each area is
shown in Table 3 below. These mining limits were calculated by LQS using existing
knowledge of CAT 773D truck productivity and accounting for the expected poor weather
during the wet season, fleet size (approximately 5 trucks per fleet) and haulage distances at
the Masbate project.
Table 2: Mining Limits for each Area
Area Mining Limit

Main Vein 8,000,000 tpa
Colorado 8,000,000 tpa
Holy Moses Basalt 4,000,000 tpa
Montana 4,000,000 tpa
19.2.2.6 Processing Recovery

The processing recovery was initially calculated for the IMC 2006 BFS using a head grade
and residual grade for each separate region of each area, resulting in approximately 50
different recoveries. In order to simplify the optimisation, yet maintain overall accuracy, the
recovery of each material type in each area was used, this was confirmed by Mr Geoff
Jones, CGA’s Consulting Engineer; Table 3 shows these recoveries.
Table 3: Processing Recoveries by Rock Code
Area Rock Code Processing

Recovery
Main Vein dump 100 87.0
Main Vein Oxide 101 87.0
Main Vein Transitional 102 80.5
Main Vein Primary 103 72.3
Colorado Grand View Dump 200 87.7
Colorado Grand View Oxide 201 87.7
Colorado Grand View Transitional 202 85.6
Colorado Grand View Primary 203 72.9
HMB Dump 300 89.7
HMB Oxide 301 89.7
HMB Transitional 302 85.8
HMB Primary 303 80.4
Montana Oxide 401 93.8
Montana Transitional 402 83.6
Montana Primary 403 79.2
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OCTOBER 2008
19.2.2.7 Grade Cut-Offs

No cut-off grades were forced within the optimization; Whittle determined the final economic
cut-offs dependent upon sale price and overall costs.
The economic cut-off grade for the base case optimisation determined by Whittle ranged
from 0.37g/t to 0.46g/t depending on the location and material type. This figure was rounded
to 0.4g/t Au across all locations and material types for practicality purposes.
19.2.2.8 Mining Dilution

A 5% mining dilution factor was applied to the project to account for dilution that would be
expected to occur during the course of mining due to the mixing of ore and waste material in
the blasting and excavation processes. The grade of the diluting material is 0g/t for the
Whittle optimisation, however with stockwork and halo material surrounding the high grade
veins within the deposit; a dilutant grade of approximately 0.25g/t was applied to the final
Mineral Reserve calculations and scheduling.
19.2.2.9 Mining Recovery

A 95% mining recovery factor was applied to the project to account for the amount of ore
that is lost in old workings or due to re-handling as well as any unforeseen additional ore
losses (ore trammed to waste dump, etc).
19.2.2.10 Commodity Price

The base case commodity sell price was supplied to be US$750/oz of Au. This was
converted to US$24.11 per gram Au.
19.2.2.11 Selling Costs

The selling cost from the original feasibility study was calculated at 2% of the sell price, this
figure was again used, resulting in a selling cost of US$0.48 per gram of gold.
19.2.2.12 Exchange Rate

All costs are in US dollars unless otherwise stated.
19.2.2.13 Discount Rate

A discount rate of 10% was used for the optimisation; implicit time costs were applied.
19.2.2.14 Mining Costs

The costs associated with mining this deposit are dependent upon material type (oxide,
transitional or primary) more than elevation. This information is based upon simulation work
conducted by Mr Julien Lawrence of Leighton Asia, with information conveyed via a
memorandum titled Masbate Whittle Optimization- Input Parameters Summary from the 8th
of May, 2008. The mining costs for each area and material type is shown in Table 4. The
mining cost for waste was determined to be US$1.90/t. There was no MCAF applied by
elevation to the block model or Whittle optimisation as the material type has in effect taken
the elevation into consideration.
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OCTOBER 2008
Table 4: Mining Cost by Rock Code
Area Rock Mining

Code Cost $/t
Main Vein dump 100 1.83
Main Vein Oxide 101 1.90
Main Vein Transitional 102 1.83
Main Vein Primary 103 2.07
Colorado Grand View Dump 200 1.83
Colorado Grand View Oxide 201 1.90
Colorado Grand View Transitional 202 1.83
Colorado Grand View Primary 203 2.07
HMB Dump 300 1.83
HMB Oxide 301 1.90
HMB Transitional 302 1.83
HMB Primary 303 2.07
Montana Oxide 401 1.90
Montana Transitional 402 1.83
Montana Primary 403 2.07
19.2.2.15 Processing Costs

The costs associated with processing the ore were unchanged from the IMC 2006 BFS. The
processing cost used was US$7.50/t. There was no PCAF applied to the block model or
Whittle optimisation.
19.2.3 Whittle Results

All cashflows displayed in the following tables are operational cashflows only and do not take
into consideration such factors as capital expenditure or taxes and cannot be viewed as the
discounted cashflow for the project.
19.2.3.1 Main Vein

After preliminary Whittle optimisations on the Main Vein area the final pit was found to be
quite large, with a significant difference between mining the pit in the “Worst Case” and “Best
Case” scenarios. Worst Case refers to mining the pit from the top down, completely mining
one bench before moving to the next bench below, Best Case is where each pit (as in table
5 below) is mined before moving to the next pit. This creates a set of nested pits, which in
general terms is not practicable to design to or mine.
To get a more realistic final pit shell, a number of pushbacks were chosen such that the end
result, or “Specified Case”, is somewhere between the Worst Case and Best Case
scenarios. In Main Vein, the chosen pushbacks were pits 15, 20 and 26; the overall pit shell
chosen was pit 34 (highlighted in Table 5) which has the highest Specified Case discounted
cashflow.
Table 5 has been truncated to pit 53, while Figure 2 is the graphical representation of the full
table. Appendix II contains the full Whittle output table for each of the four optimisations.
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OCTOBER 2008
Table 5: Main Vein Whittle Results
Open pit Open pit Open pit Ore Grade Mine

cashflow cashflow cashflow tonne Waste input life
Final best specified worst input tonne AU_K years
pit $ disc $ disc $ disc
1 $ 49,186,835 $ 49,186,835 $ 49,186,835 1,582,374 1,883,477 2.38 0.43

2 $ 54,670,374 $ 54,670,374 $ 54,670,374 1,871,974 2,150,668 2.28 0.50
3 $ 64,253,646 $ 64,253,646 $ 64,253,646 2,451,295 2,801,098 2.13 0.66
4 $ 67,781,032 $ 67,781,032 $ 67,781,032 2,692,628 3,009,526 2.07 0.71
5 $ 73,862,944 $ 73,862,944 $ 73,862,944 3,134,959 3,518,460 2 0.83
6 $ 84,741,034 $ 84,654,014 $ 84,654,014 3,943,428 4,639,294 1.91 1.10
7 $ 94,383,359 $ 93,953,220 $ 93,953,220 4,711,900 5,449,056 1.83 1.29
8 $ 107,249,949 $ 105,299,570 $ 105,299,570 5,926,073 6,848,561 1.72 1.66
9 $ 120,235,379 $ 116,922,662 $ 116,922,662 7,442,968 7,786,380 1.62 2.04
10 $ 128,188,407 $ 124,337,632 $ 124,337,632 8,383,700 8,669,668 1.57 2.24
11 $ 150,059,315 $ 143,134,335 $ 143,134,335 11,582,397 10,614,836 1.44 2.91
12 $ 162,958,321 $ 154,371,230 $ 154,371,230 13,525,838 12,359,006 1.4 3.38
13 $ 173,113,782 $ 161,900,053 $ 161,900,053 15,241,282 13,883,281 1.37 3.82
14 $ 180,585,958 $ 168,110,054 $ 168,110,054 16,729,973 14,838,530 1.34 4.12
15 $ 196,386,112 $ 177,807,481 $ 177,807,481 20,072,878 18,053,124 1.29 5.00
16 $ 212,220,928 $ 193,367,055 $ 186,697,928 24,104,169 22,058,929 1.25 5.81
17 $ 223,247,924 $ 203,864,949 $ 191,448,710 27,610,009 24,965,197 1.21 6.71
18 $ 230,468,644 $ 210,525,043 $ 194,184,320 30,128,413 27,519,373 1.2 7.33
19 $ 237,156,705 $ 215,852,297 $ 195,203,171 32,837,599 30,088,435 1.18 8.07
20 $ 242,373,685 $ 219,718,771 $ 194,405,200 34,934,574 32,974,729 1.17 8.69
21 $ 248,630,226 $ 225,759,255 $ 190,250,594 37,982,519 37,793,208 1.15 9.47
22 $ 251,818,036 $ 228,908,346 $ 189,793,460 39,988,862 40,013,152 1.14 10.00
23 $ 255,524,001 $ 232,076,723 $ 185,830,705 42,353,627 43,323,451 1.13 10.77
24 $ 258,132,438 $ 234,205,990 $ 183,929,468 44,560,425 45,622,118 1.11 11.32
25 $ 261,358,106 $ 235,946,162 $ 174,747,222 47,413,286 51,503,117 1.11 12.43
26 $ 263,015,450 $ 236,702,803 $ 170,992,538 49,498,379 54,714,595 1.1 13.13
27 $ 264,144,857 $ 237,762,988 $ 167,246,645 50,871,869 57,194,614 1.09 13.51
28 $ 265,080,208 $ 238,606,996 $ 164,427,997 52,401,999 59,611,106 1.09 14.00
29 $ 265,476,784 $ 238,972,976 $ 162,439,999 53,082,641 60,751,519 1.08 14.24
30 $ 265,866,437 $ 239,254,610 $ 160,115,214 53,946,095 62,060,090 1.08 14.52
31 $ 266,431,359 $ 239,620,570 $ 156,852,325 55,621,255 64,462,719 1.07 15.02
32 $ 266,815,535 $ 239,875,703 $ 153,070,214 56,920,656 66,787,002 1.07 15.47
33 $ 267,089,699 $ 239,873,176 $ 150,467,868 58,330,292 69,020,508 1.06 15.92
34 $ 267,209,315 $ 239,888,298 $ 148,282,006 59,254,294 70,289,396 1.05 16.22
35 $ 267,270,136 $ 239,869,906 $ 146,371,521 59,998,280 71,401,421 1.05 16.43
36 $ 267,298,393 $ 239,662,516 $ 143,006,699 61,051,338 73,174,039 1.04 16.78
37 $ 267,266,185 $ 239,458,783 $ 139,730,688 62,076,035 74,911,428 1.04 17.12
38 $ 267,191,156 $ 239,431,358 $ 137,010,367 62,968,368 76,667,830 1.03 17.45
39 $ 267,029,186 $ 239,304,645 $ 131,693,348 64,091,126 79,768,530 1.03 17.98
40 $ 266,916,390 $ 239,115,925 $ 129,626,157 64,791,802 81,234,946 1.03 18.25
41 $ 266,779,946 $ 238,951,027 $ 127,350,902 65,520,160 82,562,544 1.02 18.51
42 $ 266,634,611 $ 238,654,947 $ 125,405,375 66,210,965 83,676,690 1.02 18.74
43 $ 266,482,781 $ 238,396,677 $ 123,218,415 66,852,419 84,708,083 1.01 18.95
44 $ 266,274,853 $ 238,374,202 $ 120,728,608 67,597,944 86,064,568 1.01 19.21
45 $ 265,855,803 $ 237,797,288 $ 114,840,995 68,877,713 89,412,208 1 19.79
46 $ 265,662,968 $ 237,536,300 $ 112,817,143 69,412,629 90,895,182 1 20.04
47 $ 265,386,179 $ 237,198,561 $ 109,793,251 70,106,225 92,940,036 1 20.38
48 $ 265,203,135 $ 236,948,049 $ 107,836,944 70,564,329 94,251,983 1 20.60
49 $ 264,964,110 $ 236,611,129 $ 105,793,786 71,127,582 96,111,165 0.99 20.90
50 $ 264,683,416 $ 236,215,018 $ 101,921,198 71,680,137 98,301,700 0.99 21.25
51 $ 264,513,705 $ 236,000,741 $ 100,427,265 72,030,305 99,362,905 0.99 21.42
52 $ 264,377,867 $ 235,814,857 $ 98,940,183 72,271,537 100,364,943 0.99 21.58
53 $ 264,090,374 $ 235,423,495 $ 97,203,333 72,836,455 102,225,486 0.99 21.88
11
OCTOBER 2008
Main Vein- Whittle Results

300 250
250
Discounted Cashflow (US$M)
200
200
Tonnes (Mt)
150
150
100
100
50
50
0 0
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85
Pit Number
Ore Tonnes Waste Tonnes Best Case Specified Case Worst Case
Figure 2: Main Vein Whittle Results Graph
19.2.3.2 Colorado
The Colorado pit was again sufficiently large to select one pushback to increase the pit size
and improve the discounted cashflow. The pushback selected was pit 21, the selected final
pit was pit 33; Table 6 highlights these two pits and has been truncated to pit 48, with Figure
3 showing the full table in graphical form.
12
OCTOBER 2008
Table 6: Colorado Whittle Results

1 $ 18,288,638 $ 18,288,638 $ 18,288,638 665,792 690,919 1.91 0.17

2 $ 22,204,582 $ 22,204,582 $ 22,204,582 835,977 979,191 1.88 0.23
3 $ 26,049,314 $ 26,049,314 $ 26,049,314 1,042,870 1,258,445 1.81 0.29
4 $ 35,542,290 $ 35,542,290 $ 35,542,290 1,672,874 1,631,271 1.62 0.42
5 $ 41,431,791 $ 41,431,791 $ 41,431,791 2,159,095 1,921,043 1.52 0.54
6 $ 47,889,506 $ 47,889,506 $ 47,889,506 2,700,650 2,422,271 1.46 0.68
7 $ 57,020,535 $ 57,020,535 $ 57,020,535 3,520,374 3,309,271 1.4 0.88
8 $ 63,162,302 $ 63,161,619 $ 63,161,619 4,116,871 3,892,236 1.36 1.03
9 $ 71,236,667 $ 71,104,377 $ 71,104,377 4,879,921 4,830,505 1.33 1.23
10 $ 86,975,800 $ 84,893,765 $ 84,893,765 6,468,575 7,275,656 1.3 1.81
11 $ 93,121,256 $ 90,391,727 $ 90,391,727 7,189,369 8,361,639 1.28 2.03
12 $ 99,850,630 $ 96,324,657 $ 96,324,657 8,027,335 9,542,055 1.26 2.33
13 $ 106,037,124 $ 101,665,346 $ 101,665,346 8,959,674 10,548,853 1.23 2.57
14 $ 112,374,233 $ 107,195,426 $ 107,195,426 9,950,659 11,661,963 1.21 2.78
15 $ 118,163,222 $ 111,846,347 $ 111,846,347 11,017,590 13,011,046 1.18 3.05
16 $ 130,226,936 $ 121,550,221 $ 121,550,221 13,271,646 15,999,544 1.14 3.66
17 $ 132,243,655 $ 123,118,061 $ 123,118,061 13,730,022 16,529,572 1.14 3.78
18 $ 134,777,617 $ 124,644,628 $ 124,644,628 14,295,091 17,715,424 1.13 4.00
19 $ 139,501,693 $ 127,895,674 $ 127,895,674 15,566,933 19,140,879 1.11 4.34
20 $ 143,892,597 $ 130,041,028 $ 130,041,028 16,825,252 20,963,273 1.09 4.72
21 $ 146,846,959 $ 131,350,077 $ 131,350,077 17,791,381 22,401,559 1.08 5.03
22 $ 147,910,235 $ 132,368,631 $ 132,207,448 18,157,974 22,858,488 1.07 5.13
23 $ 148,796,933 $ 133,261,466 $ 132,818,968 18,498,678 23,272,689 1.07 5.22
24 $ 151,530,480 $ 135,870,299 $ 134,071,580 19,631,572 25,324,750 1.05 5.62
25 $ 152,540,533 $ 136,827,941 $ 134,416,572 20,179,390 26,098,165 1.05 5.78
26 $ 153,152,486 $ 137,397,278 $ 134,532,993 20,546,075 26,813,053 1.04 5.92
27 $ 153,547,030 $ 137,743,346 $ 134,565,365 20,802,011 27,252,286 1.04 6.01
28 $ 154,521,574 $ 138,924,438 $ 134,661,550 21,482,031 28,606,273 1.03 6.26
29 $ 155,279,652 $ 139,543,669 $ 134,181,467 22,095,864 29,907,185 1.02 6.50
30 $ 155,918,534 $ 140,016,479 $ 133,796,342 22,762,072 31,254,022 1.01 6.75
31 $ 156,366,052 $ 140,246,579 $ 133,011,155 23,343,951 32,514,452 1.01 6.98
32 $ 156,560,671 $ 140,392,541 $ 132,802,157 23,650,103 33,038,155 1 7.09
33 $ 156,786,319 $ 140,458,832 $ 132,151,306 24,169,681 33,973,302 1 7.27
34 $ 157,138,912 $ 140,134,435 $ 129,432,762 25,165,505 36,938,490 0.99 7.76
35 $ 157,200,946 $ 139,959,362 $ 128,660,151 25,536,919 37,785,668 0.98 7.92
36 $ 157,270,352 $ 139,015,235 $ 125,783,571 26,712,323 42,849,396 0.98 8.70
37 $ 157,251,417 $ 138,897,398 $ 125,090,714 26,925,918 43,631,997 0.98 8.82
38 $ 157,217,618 $ 138,807,698 $ 124,728,919 27,081,311 44,044,153 0.98 8.89
39 $ 156,612,793 $ 138,008,938 $ 120,117,708 28,932,938 50,159,426 0.96 9.89
40 $ 156,480,883 $ 137,860,605 $ 119,444,078 29,239,120 51,224,802 0.96 10.06
41 $ 156,392,641 $ 137,756,320 $ 119,152,875 29,401,567 51,776,873 0.96 10.15
42 $ 155,455,647 $ 136,409,074 $ 114,829,566 30,737,456 57,905,595 0.95 11.08
43 $ 155,203,892 $ 136,091,518 $ 114,080,478 31,089,783 59,076,298 0.95 11.27
44 $ 154,927,717 $ 135,715,707 $ 113,248,447 31,466,623 60,221,127 0.94 11.46
45 $ 154,796,023 $ 135,541,209 $ 112,973,528 31,594,624 60,887,080 0.94 11.56
46 $ 154,059,321 $ 134,488,915 $ 110,535,089 32,341,356 64,224,659 0.94 12.07
47 $ 153,420,749 $ 133,631,688 $ 108,495,040 33,020,959 66,465,145 0.93 12.44
48 $ 153,314,528 $ 133,468,103 $ 108,213,503 33,120,581 66,906,089 0.93 12.50
13
OCTOBER 2008
Colorado- Whittle Results

180 140
160
120
140
100
120
Tonnes (Mt)
100 80
80 60
60
40
40
20
20
0 0
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85
Pit Number
Figure 3: Colorado Whittle Results Graph
19.2.3.3 Holy Moses Basalt

Similar to Colorado, the Holy Moses Basalt (HMB) area had one pushback selected for the
final Whittle optimisation. The chosen pushback was pit 20 with the selected final pit being
pit 33. Table 7 and Figure 4 show the Whittle optimisation results for HMB.
14
OCTOBER 2008
Table 7: Holy Moses Basalt Whittle Results

1 $ 7,074,317 $ 7,074,317 $ 7,074,317 250,046 249,142 1.96 0.12

2 $ 7,702,232 $ 7,702,232 $ 7,702,232 285,172 294,336 1.9 0.14
3 $ 9,702,598 $ 9,702,598 $ 9,702,598 380,146 473,512 1.86 0.21
4 $ 23,924,530 $ 23,924,530 $ 23,924,530 1,331,795 1,673,423 1.57 0.75
5 $ 26,638,121 $ 26,638,121 $ 26,638,121 1,556,914 1,825,040 1.53 0.85
6 $ 28,212,358 $ 28,212,358 $ 28,212,358 1,682,852 2,037,472 1.52 0.93
7 $ 29,990,367 $ 29,990,358 $ 29,990,358 1,851,151 2,162,300 1.49 1.00
8 $ 32,326,509 $ 32,275,554 $ 32,275,554 2,079,162 2,347,233 1.45 1.11
9 $ 32,716,942 $ 32,647,112 $ 32,647,112 2,116,038 2,393,488 1.45 1.13
10 $ 37,822,790 $ 37,337,931 $ 37,337,931 2,668,581 2,931,632 1.38 1.40
11 $ 39,756,810 $ 38,995,833 $ 38,995,833 2,881,520 3,203,922 1.36 1.52
12 $ 44,288,673 $ 42,752,775 $ 42,752,775 3,514,927 3,889,203 1.3 1.85
13 $ 45,323,636 $ 43,642,233 $ 43,642,233 3,664,573 3,993,820 1.29 1.91
14 $ 47,870,567 $ 45,854,430 $ 45,854,430 4,061,705 4,296,163 1.26 2.09
15 $ 57,680,874 $ 52,971,442 $ 52,971,442 5,593,947 6,862,689 1.21 3.11
16 $ 63,532,418 $ 57,375,927 $ 57,375,927 6,646,826 8,651,295 1.19 3.82
17 $ 65,305,638 $ 58,690,440 $ 58,690,440 7,093,534 9,115,366 1.17 4.05
18 $ 66,262,360 $ 59,550,988 $ 59,550,988 7,336,462 9,224,921 1.16 4.14
19 $ 67,963,447 $ 60,701,817 $ 60,701,817 7,741,213 9,917,165 1.15 4.41
20 $ 68,847,777 $ 61,294,961 $ 61,294,961 8,022,621 10,117,944 1.14 4.54
21 $ 70,220,510 $ 62,380,632 $ 61,315,045 8,390,788 11,017,499 1.14 4.85
22 $ 71,446,269 $ 63,451,196 $ 61,667,312 8,832,144 11,538,166 1.12 5.09
23 $ 72,306,308 $ 64,247,286 $ 61,783,689 9,135,828 12,076,472 1.11 5.30
24 $ 73,851,866 $ 65,746,627 $ 61,576,343 9,799,082 13,371,003 1.1 5.79
25 $ 74,113,051 $ 65,997,365 $ 61,488,415 9,939,180 13,535,890 1.09 5.87
26 $ 74,641,823 $ 66,509,381 $ 61,520,106 10,313,737 13,733,844 1.08 6.01
27 $ 75,489,680 $ 67,242,950 $ 61,314,500 10,885,237 14,390,074 1.06 6.32
28 $ 76,109,877 $ 67,675,006 $ 60,398,167 11,372,067 15,214,146 1.05 6.65
29 $ 76,408,436 $ 67,904,593 $ 60,161,980 11,680,664 15,472,979 1.04 6.79
30 $ 76,603,698 $ 68,060,630 $ 59,739,077 11,888,483 15,930,451 1.03 6.95
31 $ 76,793,453 $ 68,190,467 $ 59,285,403 12,104,067 16,492,237 1.03 7.15
32 $ 76,954,507 $ 68,242,640 $ 58,704,944 12,370,925 16,901,663 1.02 7.32
33 $ 77,057,484 $ 68,226,899 $ 58,148,556 12,602,291 17,270,303 1.01 7.47
34 $ 77,196,266 $ 68,139,150 $ 56,892,725 13,063,338 17,987,952 1 7.76
35 $ 77,233,810 $ 68,051,890 $ 56,065,256 13,289,412 18,393,223 1 7.92
36 $ 77,231,264 $ 67,976,883 $ 55,514,123 13,462,421 18,761,255 0.99 8.06
37 $ 77,211,320 $ 67,943,912 $ 54,645,827 13,737,904 19,510,667 0.99 8.31
38 $ 77,154,062 $ 67,804,933 $ 53,753,333 14,051,157 20,017,329 0.98 8.52
39 $ 77,090,646 $ 67,717,059 $ 53,082,224 14,285,282 20,370,444 0.97 8.66
40 $ 77,043,693 $ 67,615,535 $ 52,673,209 14,435,250 20,513,381 0.97 8.74
41 $ 76,889,392 $ 67,363,072 $ 51,411,753 14,758,973 21,192,729 0.96 8.99
42 $ 76,630,197 $ 67,045,309 $ 50,100,320 15,142,521 22,101,639 0.95 9.31
43 $ 76,468,394 $ 66,721,626 $ 48,943,624 15,394,164 22,608,007 0.95 9.50
44 $ 76,321,569 $ 66,534,048 $ 48,312,264 15,599,983 23,000,094 0.94 9.65
45 $ 76,039,227 $ 66,026,435 $ 46,441,950 15,927,981 23,969,432 0.94 9.97
46 $ 75,956,008 $ 66,528,688 $ 45,913,792 16,016,096 24,244,665 0.94 10.07
47 $ 75,762,816 $ 65,675,478 $ 45,059,959 16,224,950 24,657,310 0.93 10.22
15
OCTOBER 2008
Holy Moses Basalt- Whittle Results

90 60
80
50
70
60 40
Tonnes (Mt)
50
30
40
30 20
20
10
10
0 0
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85
Pit Number
Figure 4: Holy Moses Basalt Whittle Results Graph
19.2.3.4 Montana
Due to the small size of Montana, no pushbacks were needed to be selected; in this case
the final pit selected was pit 30. Table 8 and Figure 5 show the Whittle optimisation results
for Montana.
16
OCTOBER 2008
Table 8: Montana Whittle Results

1 $ 7,374,655 $ 7,374,655 $ 7,374,655 155,686 179,022 3.09 0.08

2 $ 7,979,485 $ 7,979,485 $ 7,979,485 178,147 214,724 2.97 0.10
3 $ 8,157,139 $ 8,157,139 $ 8,157,139 183,264 239,007 2.97 0.11
4 $ 9,432,629 $ 9,432,629 $ 9,432,629 244,287 341,455 2.68 0.15
5 $ 10,667,807 $ 10,667,807 $ 10,667,807 298,557 465,937 2.56 0.19
6 $ 10,758,747 $ 10,758,747 $ 10,758,747 301,513 482,295 2.56 0.20
7 $ 10,966,704 $ 10,966,704 $ 10,966,704 312,416 509,217 2.53 0.21
8 $ 11,233,084 $ 11,233,084 $ 11,233,084 334,410 526,214 2.45 0.22
9 $ 11,530,264 $ 11,530,264 $ 11,530,264 366,386 551,312 2.33 0.23
10 $ 11,623,515 $ 11,623,515 $ 11,623,515 382,742 563,924 2.27 0.24
11 $ 11,789,779 $ 11,789,779 $ 11,789,779 390,023 613,851 2.28 0.25
12 $ 11,846,404 $ 11,846,404 $ 11,846,404 395,474 618,400 2.26 0.25
13 $ 11,893,620 $ 11,893,620 $ 11,893,620 401,545 622,329 2.25 0.26
14 $ 12,257,836 $ 12,257,836 $ 12,257,836 433,066 707,501 2.19 0.29
15 $ 12,335,268 $ 12,335,268 $ 12,335,268 439,908 739,216 2.18 0.29
16 $ 12,630,693 $ 12,630,693 $ 12,630,693 477,160 839,422 2.11 0.33
17 $ 13,166,461 $ 13,166,461 $ 13,166,461 544,815 1,088,395 2.02 0.41
18 $ 13,554,857 $ 13,554,857 $ 13,554,857 613,936 1,262,054 1.93 0.47
19 $ 13,645,355 $ 13,645,355 $ 13,645,355 622,966 1,340,572 1.93 0.49
20 $ 13,704,463 $ 13,704,463 $ 13,704,463 637,302 1,374,336 1.91 0.50
21 $ 13,853,790 $ 13,853,790 $ 13,853,790 663,554 1,496,218 1.89 0.54
22 $ 13,895,072 $ 13,895,072 $ 13,895,072 675,557 1,522,068 1.87 0.55
23 $ 14,447,999 $ 14,447,999 $ 14,447,999 827,807 2,147,201 1.76 0.74
24 $ 14,656,351 $ 14,656,351 $ 14,656,351 899,706 2,608,659 1.74 0.88
25 $ 14,666,539 $ 14,666,539 $ 14,666,539 904,688 2,623,597 1.74 0.88
26 $ 14,707,179 $ 14,707,179 $ 14,707,179 936,614 2,740,943 1.71 0.92
27 $ 14,723,047 $ 14,723,047 $ 14,723,047 960,741 3,035,614 1.72 1.00
28 $ 14,756,493 $ 14,755,320 $ 14,755,320 977,555 3,078,800 1.71 1.01
29 $ 14,901,134 $ 14,858,708 $ 14,858,708 1,045,747 3,382,792 1.67 1.11
30 $ 15,013,098 $ 14,911,309 $ 14,911,309 1,141,046 3,626,922 1.6 1.19
31 $ 15,095,239 $ 14,851,819 $ 14,851,819 1,187,565 4,117,792 1.61 1.33
32 $ 15,102,176 $ 14,849,535 $ 14,849,535 1,199,108 4,144,565 1.6 1.34
33 $ 15,101,626 $ 14,847,135 $ 14,847,135 1,207,211 4,146,462 1.59 1.34
34 $ 15,092,274 $ 14,811,641 $ 14,811,641 1,234,419 4,217,050 1.57 1.36
35 $ 15,087,635 $ 14,805,103 $ 14,805,103 1,241,118 4,220,351 1.57 1.37
36 $ 15,055,161 $ 14,748,628 $ 14,748,628 1,267,594 4,293,815 1.55 1.39
37 $ 14,942,935 $ 14,540,013 $ 14,540,013 1,333,938 4,545,968 1.51 1.47
38 $ 14,663,771 $ 14,030,007 $ 14,030,007 1,436,830 5,115,899 1.47 1.64
39 $ 14,620,195 $ 13,969,166 $ 13,969,166 1,454,897 5,157,832 1.46 1.65
40 $ 14,416,725 $ 13,652,250 $ 13,652,250 1,482,603 5,438,215 1.45 1.73
41 $ 14,411,869 $ 13,644,868 $ 13,644,868 1,483,226 5,447,592 1.45 1.73
42 $ 14,181,004 $ 13,233,120 $ 13,233,120 1,514,523 5,845,731 1.45 1.84
43 $ 14,170,240 $ 13,219,647 $ 13,219,647 1,518,884 5,851,370 1.45 1.84
44 $ 14,114,237 $ 13,133,734 $ 13,133,734 1,533,362 5,916,892 1.44 1.86
45 $ 13,764,245 $ 12,590,666 $ 12,590,666 1,580,382 6,369,394 1.43 1.99
46 $ 13,732,327 $ 12,544,526 $ 12,544,526 1,583,494 6,426,156 1.43 2.00
17
OCTOBER 2008
Montana- Whittle Results

16 12
14
10
12
8
10
Tonnes (Mt)
8 6
6
4
4
2
2
0 -
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59
Pit Number
Figure 5: Montana Whittle Results Graph
19.2.3.5 Combined Whittle Results

The selected pit shells from each area have been tabulated below. The subsequent pit
design process used these pit shells shown in Figure 6 to achieve the Final Mineral Reserve.
The economic cut-off grade for the base case optimisation determined by Whittle was 0.4g/t
Au.
Table 9: Whittle Results Summary – Shell Inventories

Area best specified worst input tonne AU_K years
$ disc $ disc $ disc
Main Vein $ 267,209,315 $ 239,888,298 $ 148,282,006 59,254,294 70,289,396 1.05 16.22

Colorado $ 156,786,319 $ 140,458,832 $ 132,151,306 24,169,681 33,973,302 1.00 7.27
HMB $ 77,057,484 $ 68,226,899 $ 58,148,556 12,602,291 17,270,303 1.01 7.47
Montana $ 15,013,098 $ 14,911,309 $ 14,911,309 1,141,046 3,626,922 1.60 1.19
Total $ 516,066,216 $ 463,485,338 $ 353,493,177 97,167,312 125,159,923 1.04 19.8*
* Calculated based on the milling throughput of 4Mtpa for first two years and 5Mtpa for the remaining years
18
OCTOBER 2008
Figure 6: Whittle Pit Shells
19
OCTOBER 2008
19.3 Sensitivity Analysis

A number of sensitivity runs were performed on the base case scenario for each deposit
where processing, mining costs and sell price were run at -20%. -10%, +10% and +20% as
well as optimisation runs executed with the mining dilution set at 5% and 25%. All cashflows
are operational cashflows only and do not take into consideration capital expenditure or
taxes etc and cannot be viewed as the discounted cashflow for the project. The following
tables and graphs illustrate the sensitivity outputs:
Table 10: Results from Sensitivity Runs
Scenario Discounted Cashflow ($m) Pit Tonnages (Mt)

Best Specified Worst Ore Waste
Base Case 516.0 463.5 354.0 96.9 124.8
Metal Price +20% 764.3 646.3 509.4 120.2 148.6
Metal Price +10% 638.3 556.3 423.3 110.5 141.6
Metal Price -10% 398.5 366.4 280.1 82.7 110.7
Metal Price -20% 288.0 271.0 215.8 63.6 90.2
Processing Cost +20% 433.6 397.9 310.1 76.1 113.7
Processing Cost +10% 459.0 418.2 323.0 83.4 119.7
Processing Cost -10% 561.0 496.3 379.5 106.5 127.9
Processing Cost -20% 610.2 529.0 411.0 118.7 131.0
Mining Cost +20% 467.8 429.4 333.4 86.5 103.3
Mining Cost +10% 488.9 442.5 344.1 94.4 120.6
Mining Cost -10% 534.1 481.0 373.6 101.8 137.3
Mining Cost -20% 558.5 500.3 388.1 109.7 159.1
Dilution 10% 503.7 452.7 344.5 97.9 116.1
Dilution 15% 475.6 428.4 326.3 99.0 112.9
Table 11: Comparison of Sensitivity Run Results
Parameter Discounted Cashflow ($m)

-20% -10% +10% +20%
Processing Cost 529.0 496.3 418.2 397.9
Mining Cost 500.3 481.0 442.5 429.4
Metal Price 271.0 366.4 556.3 646.3
Variance
Processing Cost 14.1% 7.1% -9.8% -14.1%
Mining Cost 7.9% 3.8% -4.5% -7.4%
Metal Price -41.5% -21.0% 20.0% 39.4%
20
OCTOBER 2008
Figure 7: Spider Graph of Key Parameters
21
OCTOBER 2008
Discounted Pit Value

Dilution 15%
Sensitivity
Dilution 10%
Mining Cost -20%
Mining Cost -10%
Mining Cost +10%
Mining Cost +20%
Processing Cost -20%
Processing Cost +10%
Metal Price -20%
Metal Price -10%
Metal Price +10%
Metal Price +20%
Base Case
250 300 350 400 450 500 550 600 650

US$m
Figure 8: Discounted Pit Value Sensitivity Graph
Pit Ore Tonnages

Sensitivity
Dilution 15%
Dilution 10%
Mining Cost -20%
Mining Cost -10%
Mining Cost +10%
Mining Cost +20%
Metal Price -20%
Metal Price -10%
Metal Price +10%
Metal Price +20%
Base Case
50 60 70 80 90 100 110 120 130

Ore Tonnes (Mt)
Figure 9: Pit Ore Tonnages Sensitivity Graph
22
OCTOBER 2008
Sensitivity Pit Waste Tonnages

Dilution 15%
Dilution 10%
Mining Cost -20%
Mining Cost -10%
Mining Cost +10%
Mining Cost +20%
Metal Price -20%
Metal Price -10%
Metal Price +10%
Metal Price +20%
Base Case
80 90 100 110 120 130 140 150 160 170

Waste Tonnes (Mt)
Figure 10: Pit Waste Tonnages Sensitivity Graph
19.4 Mine Design

Mine designs were created to replicate each of the pushbacks selected and highlighted in
the tables in Section 19.2.3 of this report, as well as the final pit shell chosen for each area.
Additional to these designs were a set of “starter pits” aimed at providing a high grade mill
feed for the first two years of production. The Whittle pit shells on which the starter pit
designs were based on were determined by targeting 8Mt of high grade ore. The entire
Montana pit was of sufficient grade to warrant being completely mined as a starter pit;
therefore approximately 7Mt was required from the other areas. To achieve this target, pit
shell 5 from the Main Vein, Colorado and HMB optimisations were used as the starting point.
An iterative approach was ultimately required to achieve the ideal mining locations.
Geotechnical work carried out by Knight Piesold (KP) for the IMC 2006 BFS was used as a
starting point and altered slightly for these designs based on the increased size of each of
the pits.
It is strongly recommended that a geotechnical review be carried out on these designs,

although in saying that, it is anticipated that any alterations made to the designs as a result
of the review would not significantly change the Mineral Reserve.
19.4.1 Geotechnical Constraints

In general, the slope angles and berm widths used throughout the design process were 65°
batter angles and five metre wide berms given a final toe to crest wall angle of between 55°
and 60° depending on the wall height. There are a few areas where, due to poorer ground
conditions, the batter angles have been decreased or berm widths increased. The
geotechnical parameters used through the design process are in table 12.
23
OCTOBER 2008
Table 12: Geotechnical Design Parameters
Area Batter Berm Bench Toe to

Angle Width Height Crest Angle
General 65° 5m 20m 55-60°
South-Eastern Wall of Colorado 60° 5m 20m 50°
Southern Wall of Holy Moses Basalt 60° 10m 20m 45-47°
Northern Wall of Main Vein below -50mRL 60° 7.5m 10m 43°
Existing Dumps 40° 5m 20m 37°
19.4.2 Ramp Design Parameters

The ramp width is directly related to the width of the dump trucks in use and is typically 2:1
(ramp width vs truck width) for a single lane ramp and 3.5:1 for a double lane ramp. As the
selected dump truck for this project is the CAT 773D with an operating width of around 5.1m,
the minimum ramp width used was 10m with the majority of ramps being designed at 15m
wide to allow for bunds and drains. The 10m wide ramps are only situated at the bottom of
certain pits and the maximum ramp distance has been kept below 200m in these regions. In
the upper section of the Main Vein pit, a double lane ramp of 22m wide has been used. The
maximum gradient of ramps throughout the designs is 1 in 10. The ramp width used
throughout the design is in excess of the typical factors mentioned earlier due to the
expected poor weather conditions during the wet season; allowing extra room for large
drains on ramps as required. The ramp gradient of 1 in 10 was also selected for similar
reasons.
19.4.3 Staged Pit Designs

Pit designs have been completed for each of the pushbacks selected during the Whittle
optimisation. Due to the nature of the geology with narrow, near vertical high grade veins
running through much of the area, the size of the cut-backs required to accurately follow the
Whittle pushback shells would be less than the minimum mining width. The designed
pushbacks were therefore created to match the tonnes and grade of the Whittle pushbacks
as opposed to the location, this has been shown schematically in Figure 11. Practicality in
mining has also dictated the way in which the stages have been designed.
Figure 11: Pushback Design Schematic Example
The tonnes and grade stated over the following pages are in-situ, mining recovery and
dilution will be taken into account during scheduling.
24
OCTOBER 2008
In each case, the ore mined in stage 1 will be split into high grade (+0.7g/t) and low grade
(0.4-0.7g/t) where the low grade material will be stockpiled allowing an elevated mil feed
grade for the first two years.
19.4.3.1 Main Vein

The tonnes and grade of each designed stage of the Main Vein pit are shown in Table 13
and correspond to the incremental change between Figures 12 to 17 over the following
pages. Stage 6 of Main Vein mines the existing waste dump; this material could be
recovered at an earlier stage, however initial discussions with CGA have highlighted this
‘dump’ Mineral Reserve may be added to in early years and then exploited and processed at
the end of the mine’s life.
Some of the smaller pit shells pictured in Figure 6 have not been included in the pit design
due to one of two factors; either the pit was too small to realistically mine, or was located in
an area where the Mineral Resource is largely classified as Inferred and will be optimised
and designed at a later time.
Table 13: Main Vein Staged Pit Design Tonnes and Grade
Stage Ore (Mt) Grade Waste (Mt)

1 5.4 1.63 6.9
2 15.3 1.09 8.3
3 12.4 1.00 19.6
4 2.8 1.25 6.4
5 17.7 0.96 12.1
6 3.6 0.72 0.4
Total design 57.2 1.07 53.7
Whittle shell 59.3 1.05 70.3
25
OCTOBER 2008
Figure 12: Main Vein Stage 1
26
OCTOBER 2008
27
OCTOBER 2008
28
OCTOBER 2008
19.4.3.2 Colorado
Three stages have been designed for Colorado (including the Syndicate area), with Stage 2
by far the largest. During the mining process, smaller pushbacks designed by the site
engineer as required may be advantageous, but these 3 stages are sufficient for the
purposes of this study.
From the Whittle pit shell in Figure 6, Syndicate and the main Colorado area are linked by a
continuous pit. This area has not been included in the final design as the Whittle optimised
pit shell crosses the extent of the current mining lease boundary.
Table 14: Colorado Staged Pit Design Tonnes and Grade

1 1.8 1.48 2.4
2 17.2 1.02 20.7
3 4.0 0.89 6.1
Figure 18: Colorado Stage 1
29
OCTOBER 2008
30
OCTOBER 2008
19.4.3.3 Holy Moses Basalt

The Holy Moses Basalt (HMB) area has also been designed using three stages, the last of
which will be required to be scheduled in with stage 5 of Main Vein for mining practicality due
to a very slight overlap of these two pitshells resulting from the optimisation. Mining width
becomes a significant issue at the base of the HMB pits, resulting in a decrease in ore
tonnes when compared to the Whittle optimised pit shells.
Table 15: Holy Moses Basalt Staged Pit Design Tonnes and Grade

1 3.6 1.21 3.6
2 5.2 1.11 8.0
3 2.6 0.74 1.0
Figure 21: Holy Moses Basalt Stage 1
31
OCTOBER 2008
32
OCTOBER 2008
19.4.3.4 Montana
As Montana is a small area, only one stage has been designed. The size of the designed pit
varies from the Whittle optimised shell due to the optimised shell crossing the extent of the
current mining lease boundary.
Table 16: Montana Staged Pit Design Tonnes and Grade

Figure 24: Montana Stage 1
19.4.4 Dumps
Dumping is a primary concern for this project; within the current mining lease boundaries
there is a lack of available land on which to create waste dumps. One option is to backfill
completed pits, the issue here being the potential sterilisation of future economic ore at
depth should there be any changes to the Mineral Resource model or financial situation
resulting in an increased Mineral Reserve in the future.
Looking at the current Mineral Resource model, there appears to be the option of backfilling
the Holy Moses Basalt East pit and Colorado as neither seems to have geology open at
depth (note however that this may just be resulting from a case of only shallow drilling done
to date. LQS makes this statement without confirmation).
33
OCTOBER 2008
In the first two years of production, the mill will be fed using only high grade ore (+0.7g/t),
requiring all other economic ore (0.4-0.7g/t) to be stockpiled for later processing. This
stockpile will be an extension of the existing low grade dump “Dump 90” as this dump has
been ‘modelled’ and found to have an average grade of 0.7g/t. The location of “Dump 90” is
close to most pits and the processing plant, limiting haulage distance both to the dump and
to the mill when being processed.
19.4.5 Voids
Voids from existing underground workings could play a significant role during the mining
operation of this project. The Mineral Resource model has been created taking into account
the known voids, with a buffer zone around these voids where the grades have been
downgraded. The Mineral Resource has therefore been conservatively stated, with a
potential increase in ounces possible.
There are several unknowns when it comes to the voids, primarily the final size and location
of voids and the ground conditions surrounding them. This is not an uncommon situation
when re-development of a previously operated mine takes place. The reason is that it is
extremely unlikely that the original operators carried out ‘Stope’ surveys at the completion of
the previous operation. Reliance is placed on these ‘Stope’ plans that are available. In
addition recent small scale mining may have resulted in an increase in voids, particularly in
the Syndicate and Colorado areas. Ground conditions around the final stopes are unknown.
Pit walls that have been designed in reasonably close proximity to known stopes in the
Colorado and Main Vein (Binstar area) pits have tried to account for this. Geotechnical or
probe drill holes will be required around void areas to clearly understand the prevailing
conditions.
Scheduling will also be affected by the presence of voids with some of the larger known
stopes upward of 20 metres wide. The voids will reduce productivity around these areas; a
suitable voids procedure will need to be in place to ensure safe and efficient mining around
these voids.
19.5 Mineral Reserve

The in-situ ore has been shown in tables 12 to 15, with the sum total from the four areas
being 92.3Mt at 1.06g/t. Using mining dilution and recovery factors of 5% and 95%
respectively, and a dilutant grade of 0.25g/t, the total Mineral Reserve at the Masbate
Project is 92Mt at a grade of 1.0g/t containing 3.0Moz of Gold. This has been further
expanded in table 17. In the Mineral Reserve Statement released on October 22, 2008, the
tonnes and grade for each area was labeled incorrectly. The overall tonnes and grade were
correct, below is the table as it should have read in the Mineral Reserve Statement.
34
OCTOBER 2008
Table 17: Mineral Reserves at the Masbate Gold Project
Area Ore Grade (g/t) Ounces

Tonnes
Main Vein 57,242,000 1.0 1,888,000
Colorado 22,967,000 1.0 736,000
Holy Moses Basalt 11,398,000 1.0 374,000
Montana 629,000 1.7 34,000
Total 92,236,000 1.1 3,032,000
19.6 Schedule
The schedule covered in this report is focused mainly on the mining of ore and feeding the
processing plant as opposed to dumping waste and low grade material. These issues could
play a significant role in the final schedule; however the focus for the purposes of this
Mineral Reserve update was to focus on ore movement; onsite short to medium term
planning should be put in place to deal with the issue of dump spacing and capacities. As
with the Whittle optimisation, a total production rate of 12Mtpa has been used for the entire
life of the mine which will be provided by three mining fleets each consisting of a PC1250
and the required number of CAT773 dump trucks and auxiliary support machinery.
In previous reports, there is an amount of alluvial and eluvial material in and around the HMB
and Colorado areas. This material has not been included in the Mineral Reserve statement
as it is still considered to be Inferred, however has been included in the schedule for two
reasons. The area on which the alluvial material sits is potentially a waste dump area,
therefore the material needs to be removed before dumping commences. Secondly, the
material is of sufficient tonnes and grade (~640,000t at 1.7g/t) to assist in the early mill feed
in year three of the schedule. The primary reason this material is considered Inferred and not
Indicated is there has been no statement made by any qualified persons confirming that the
Mineral Resource estimation work in the alluvial / eluvial areas has been carried out under
the guidelines of NI43-101.
In the first two years of production, CGA has committed to target the highest possible grade
material in order to achieve a mill feed of 8mt (4Mtpa) at a grade of 2.0g/t. This material
includes a limited amount of Inferred material that would need to be mined in this initial two
year period. No inferred material was included in the Mineral Reserve figures discussed in
Section 19.5 of this report.
Within the first two years, mining will commence in the pits within close proximity to the
processing plant, limiting hauling distance and allowing for potential civil works (final haul
roads, river crossings etc) to be completed in advance of these facilities being fully utilised.
In this time there will be significant movement of mining fleets, however the distances
between pits is limited. The movement of ore and waste has also been scheduled to limit
fluctuations in grade to 2g/t ± 0.3g/t for the majority of this period and maintain a
35
OCTOBER 2008
manageable ROM stockpile on a monthly basis. There are a few spikes in the feed grade,
however with further blending grade fluctuations could be limited to ± 0.2g/t.
There are two pits close to the processing plant which ideally would be completed in the first
two years for practicality purposes, but due to the low grade in these areas have been left
until year three. If the feed grade of 2.0g/t could be lowered slightly to 1.3 or 1.4g/t for a few
months in year 1, these pits (named Main Vein West and Holy Moses Basalt West) could be
included in the initial two year schedule.
The pits on the northern side of the river will be left until into the second year of production to
allow time for the construction of a suitable river crossing and the upgrading and creation of
roads to allow heavy vehicle access to the top of the Colorado pit.
The selected cut-off grade to achieve the 2.0g/t mill feed is 0.7g/t. All material below this
grade but above the economic cut-off of 0.4g/t will create a low grade stockpile near the
processing plant adjacent to the ROM pad and will be used to supplement the mill feed
should there be insufficient high grade material to maintain the full mill capacity. This
stockpile is expected to be in the region of 5Mt after year two.
From year three to the end of the mine life, the economic cut-off of 0.4g/t has been used as
the mining cut-off grade (this economic cut-off will need to be regularly reviewed during the
life of the mine). The milling capacity will be increased to 5Mtpa from year three, with the
resulting mill feed grade being 1.0g/t ± 0.5g/t up until production year 15. During the years
three to fifteen there will still be a low grade/high grade split at the 0.7g/t mentioned earlier
with the higher grade ore being fed preferentially. Approximately 12Mt of low grade material
will be added to the stockpile started in the first two years, resulting in a total of around 17Mt
of material averaging 0.54g/t, which could then be treated at the completion of mining
operations if it is feasible to do so at the time.
The general schedule of mining from years three to fifteen is to complete the small satellite
pits including Main Vein West, Syndicate and HMB West and the alluvial/eluvial material
mentioned earlier as soon as possible. Due to the size of the Main Vein pit, this will be the
focus of mining operations for much of the mine life, in general there will be two fleets
operating for the life of the mine in this pit. The second fleet from the Main Vein pit will be
shifted to Colorado or HMB East Stage 3 at various times when required. Stage 2 of HMB
East will commence in year three and should be complete by year five, at which point that
fleet will move across to Colorado for the remainder of the mines life.
There is a difference of 2Mt between the Mineral Reserve stated in Section 6 of this report
and the ore mined in the schedule in Table 17; this is due to the fact that Main Vein Stage 6
has not been included in the schedule, while the alluvial and eluvial material is included.
Mining Main Vein Stage 6 which is in effect the existing waste dump, will consist of little
more than free digging, and could provide the mill with a further 6-12 months feed at a grade
of 0.72g/t.
The overall production schedule is shown in Table 18, a more detailed schedule can be
found in Appendix III. Within the schedule is a pre-production period which is envisaged to
36
OCTOBER 2008
take approximately one to two months to complete. The first year’s production is separated
into months, the second year into quarters, then annually until the end of the mine’s life.
Table 18: Masbate Production Schedule
HG ore mined LG ore mined Mill feed Waste mined Total

mined
t g/t t g/t t g/t t s/ratio t
pre-prod 105,957 1.97 69,920 0.53 60,000 1.36 728,123 4.14 904,000
Mth1 254,096 1.75 205,620 0.51 333,333 1.78 540,284 1.18 1,000,000
Mth2 352,549 2.18 102,099 0.56 333,333 2.18 544,511 1.20 999,159
Mth3 389,456 2.30 139,502 0.58 333,334 2.30 521,042 0.99 1,050,000
Mth4 359,105 2.41 189,596 0.56 333,333 2.41 501,299 0.91 1,050,000
Mth5 251,317 2.69 163,446 0.53 333,333 2.59 635,237 1.53 1,050,000
Mth6 328,133 2.18 168,209 0.54 333,334 2.18 522,124 1.05 1,018,466
Mth7 366,683 1.48 212,335 0.55 333,333 1.48 420,982 0.73 1,000,000
Mth8 315,631 1.70 333,320 0.57 333,333 1.70 397,436 0.61 1,046,387
Mth9 294,923 1.88 357,247 0.55 333,334 1.83 397,830 0.61 1,050,000
Mth10 388,823 1.91 299,228 0.54 333,333 1.91 361,949 0.53 1,050,000
Mth11 410,043 1.95 287,641 0.54 333,333 1.95 352,316 0.50 1,050,000
Mth12 377,064 1.99 290,257 0.54 333,334 1.99 382,769 0.57 1,050,090
Qtr5 782,358 2.26 710,832 0.54 1,000,000 2.10 1,656,810 1.11 3,150,000
Qtr6 1,230,243 2.06 639,126 0.56 1,000,000 2.07 1,278,038 0.68 3,147,407
Qtr7 753,308 2.21 560,376 0.54 1,000,000 2.17 1,685,382 1.28 2,999,066
Qtr8 835,975 1.99 370,710 0.59 1,000,000 1.75 2,992,747* 2.48* 4,199,432*
Yr3 2,610,338 1.46 2,290,961 0.53 5,000,000 1.01 7,126,372 1.46 12,027,671
Yr4 3,665,676 1.31 3,285,702 0.53 5,000,000 1.10 5,048,622 0.73 12,000,000
Yr5 5,002,516 1.48 3,186,844 0.54 5,000,000 1.48 3,810,640 0.47 12,000,000
Yr6 2,282,118 1.42 1,995,419 0.52 5,000,000 0.93 7,713,927 1.80 11,991,464
Yr7 1,883,673 1.35 2,286,972 0.54 5,000,000 0.84 7,829,355 1.88 12,000,000
Yr8 1,510,930 1.45 2,312,834 0.54 5,000,000 0.82 8,176,236 2.14 12,000,000
Yr9 3,767,619 1.29 2,690,312 0.55 5,000,000 1.11 5,542,069 0.86 12,000,000
Yr10 2,658,944 1.54 2,105,061 0.56 5,000,000 1.08 7,233,239 1.52 11,997,244
Yr11 2,866,241 1.34 2,699,805 0.55 5,000,000 1.00 6,430,179 1.16 11,996,225
Yr12 2,411,034 1.18 3,391,347 0.54 5,000,000 0.85 6,189,827 1.07 11,992,208
Yr13 3,175,295 1.31 3,843,930 0.55 5,000,000 1.03 4,980,775 0.71 12,000,000
Yr14 3,537,846 1.36 3,556,870 0.55 5,000,000 1.13 4,905,284 0.69 12,000,000
Yr15 3,727,612 1.39 3,575,887 0.54 5,000,000 1.18 4,654,030 0.64 11,957,529
Yr16 419,027 1.50 595,676 0.55 5,000,000 0.63 808,470 0.80 1,823,173
Yr17 - - - - 5,000,000 0.54 - - -
Yr18 - - - - 5,000,000 0.54 - - -
Yr19 - - - - 2,171,617 0.54 - - -
Total 47,314,533 1.50 42,917,084 0.55 90,231,617 1.05 94,367,904 1.05 184,599,521
Pre-production period will provide waste for ROM pad construction and ore for Mill commissioning.
*- Includes pre-strip for Stage 2 HMB East of approximately 1.2Mt of waste
A second schedule was tested where the high grade material (>0.7g/t) was targeted and fed
through the mill within a constrained mine life of 10 years. The schedule has not been shown
37
OCTOBER 2008
in this report as altering the mining rate could significantly alter the economics of this project
and the overall Mineral Reserve. The information supplied in this paragraph is just an
indication to highlight the fact that a high grading option could be achievable with a change
in fleet or equipment size. In order to achieve this mill feed, the mining production rate would
have to be increased to around 20Mtpa, resulting in high grade production of 5Mtpa at an
average feed grade of around 1.4g/t. If a more detailed study into this schedule is requested,
the ability to mine at the elevated production rate will need to be confirmed and the study will
need to be reviewed, specifically the Whittle optimisation.
20 Other Relevant Data and Information
There is no new “other relevant data and information” since the last Technical Report
submitted for the Mineral Reserve. Please refer to this document: Masbate Gold Project,
Masbate Island, Philippines Form NI43-101F1 Technical Report to Thistle Mining and CGA
Mining Limited, 30 April 2006, Report No: IMC 01099.
21 Interpretation and Conclusions
Under the current circumstances in terms of mining and milling capacity, this project has a
high return; however future studies into increasing the mining and/or milling capacity could
further improve this project.
For those areas of the study that have not changed since the April 2006 Technical Report
(Tailings Storage Facility Geotechnical work, Environmental considerations etc), please refer
to: Masbate Gold Project, Masbate Island, Philippines Form NI43-101F1 Technical Report to
Thistle Mining and CGA Mining Limited, 30 April 2006, Report No: IMC 01099.
22 Recommendations
Further drilling will be advantageous to convert the current Inferred material in the Panique
and Doris areas to Indicated, with the potential to turn those Mineral Resources into Mineral
Reserves. Drilling at depth in existing areas is also required to determine the extent of
mining and the possibility of utilising the mined out pits as waste dumps.
38
OCTOBER 2008
23 References
IMC Mining Solutions Pty Ltd, 2008, Report to CGA Mining on the Masbate Optimisation
Based on $750, Report No IMC908.
Lawrence, Julien and Wan, Irwan, 2008, Masbate Whittle Optimisation- Input Parameters
Summary, memo communicated to Filminera Resources Corporation and Leighton.
IMC Mining Solutions Pty Ltd, 2006, Report to Thistle Mining and CGA Mining Limited-
Masbate Gold Project, Masbate Island, Philippines-Form NI43-101F1 Technical Report,
Report No IMC01099
Mining Associates Pty Ltd, 2008, Technical Report on the Mineral Resources of the
Masbate Deposit- Masbate Province, Republic of the Philippines, for CGA Mining Limited
IMC Mining Solutions Pty Ltd, 2006, Masbate Project Bankable Feasibility Study Mining
Report for Thistle Mining Corp- Version 1, Report No IMC1084
39
OCTOBER 2008
24 Date and Signature Page
Mr Daniel Tuffin
Original Copy Signed
_____________________
Date: 5th December, 2008
Mr Anthony Keers
Original Copy Signed
_____________________
Date: 5th December, 2008
40
OCTOBER 2008
25 Additional Requirements for Technical Reports on Development

Properties and Production Properties
25.1 Unchanged Items from the 2006 Technical Report

Several items required for a Technical Report have not changed since the IMC Mining
Solutions Technical Report was submitted in April 2006, the unchanged items are listed
below, please refer to Masbate Gold Project, Masbate Island, Philippines Form NI43-101F1
Technical Report to Thistle Mining and CGA Mining Limited, 30 April 2006, Report No: IMC
01099 for more detail.
Table 19: Unchanged Items from 2006 Technical Report
Item April 2006

Report Section
Process Plant 25.1

Site Infrastructure 25.2
Tailings Storage Facility 25.3
Water Management 25.4
Environmental Controls 25.8
Implementation 25.10
Tax 25.11
Import Duties 25.12
Corporate Income Tax 25.13
Property Tax 25.14
Withholding Tax 25.15
Government Excise Taxes 25.16
25.2 Power
Power costs have been included in the US$7.50/t processing cost supplied by CGA, no
further breakdown of costs was provided.
25.3 Markets
The selling price of gold used for this Technical Report was US$750/oz, this lies towards the
lower end of the gold price over the last twelve months which has seen the price vary from
US$720/oz to over US$1000/oz. Taking into account forward predictions from varied
sources, a sell price of US$750/oz was considered appropriate for this study.
25.4 Contracts
Filminera Resources Corporation and Leighton have undertaken an Alliance to exploit this
Mineral Reserve.
25.5 Mining Operations

This study has only considered open cut mining methods for use at this project in the current
environment. Filminera and Leighton have undertaken an Alliance to mine this deposit.
41
OCTOBER 2008
The mining rate used for this study was 12Mtpa using three fleets each consisting of a
PC1250 excavator and five trucks. A conservative estimate has been used due to the
prevailing poor weather conditions and limited operator experience; there is however a
potential upside if a high standard of road maintenance operator training can be achieved.
25.6 Capital Costs and Operating Costs

Capital costs have been determined and in many situations the funds have been committed
as per the information detailed in the Masbate Gold Project, Masbate Island, Philippines
Form NI43-101F1 Technical Report to Thistle Mining and CGA Mining Limited, 30 April
2006, Report No: IMC 01099, please review this document for more information. Capital
costs were not included in the Whittle Optimisation as the Discounted Cashflow of the mining
phase and the selection of the optimal pit is independent of any capital.
A detailed breakdown of operating costs was not available for this report, operating costs
supplied by CGA for this study can be found in Section 19.2.2 of this report.
25.7 Economic Analysis

An updated cost model was not available to complete the economic analysis at the time of
writing this report. In turn a payback period could not be calculated.
25.8 Mine Life

Under the current mining conditions, the mine life for this project is 18.5 years. The main
constraint on this figure is the mill. Total movement has been kept at 12Mtpa for the life of
the mine, even with this the in situ Mineral Reserve will be exhausted after just over 15
years, with the last 3 years of the project life being processing only.
There is a good potential for exploration drilling to increase the life of mine. Areas to the
south of the Main Vein pit have had a number of exploration holes drilled but require more to
be able to improve the classification of the Mineral Resource from Inferred to Indicated.
Future drilling could increase the high grading period at the beginning of the project.
26 Illustrations
No further illustrations are included.
42
OCTOBER 2008
APPENDIX I: Block Model Preparation Script

# Make all "air" values 1 for blocks above the topo
set status [ SclFunction "BM BLOCK MATHS" {
frm20220={
{
block_maths={
{
opfld="air"
value="1"
}
}
constrain="YES"
}
}
frm20111={
{
constraints=table { not op contype location id rnga rngb lbound ubound ext } {
{ "" "ABOVE" "DTM" "../imc_topo_masbate" "" "" "" "" "" "" }
}
conexp=""
confile=""
keep_blocks="N"
}
}
}]
# Fill sg for waste blocks with value of 2.35 above the 100RL
frm20220={
{
block_maths={
{
opfld="sg"
value="2.35"
}
}
constrain="YES"
}
}
frm20111={
{
{ "" "ABOVE" "Z PLANE" "100" "" "" "" "" "" "" }
{ "" "=" "BLOCK" "au_krig" "0" "" "" "" "" "" }
}
conexp=""
confile=""
43
OCTOBER 2008
keep_blocks="N"
}
}
}]
# Fill sg for waste blocks with value of 2.5 below the 100RL
frm20220={
{
block_maths={
{
opfld="sg"
value="2.50"
}
}
constrain="YES"
}
}
frm20111={
{
{ "NOT" "ABOVE" "Z PLANE" "100" "" "" "" "" "" "" }
{ "" "=" "BLOCK" "au_krig" "0" "" "" "" "" "" }
}
conexp=""
confile=""
keep_blocks="N"
}
}
}]

frm20220={
{
block_maths=table { opfld value } {
{ "oxzones" "iif(sg<2.5,iif(sg<2.35,iif(sg<2.2,0,1),2),3)" }
}
constrain="NO"
}
}
}]
# Create attribute "rock" to separate areas and material type and "zone" for geotech/slope
regions
set status [ SclFunction "BM ADD ATTRIBUTE" {
frm20150={
{
attributes=table { name type decimals bgv description } {
{ "rock" "integer" null "1" "100-400 for area, 001-003 for ox zones, 000 for dumps" }
44
OCTOBER 2008
{ "zone" "integer" null "0" "geotech zones" }

}
}
}
}]
# Fill rock with integers based on area and material type

foreach i {"100" "100" "200" "300" "100" "400" "100"} j {"Binstar Doris" "Boston" "Colorado Grand
View" "Holy Moses Basalt" "Main Vein Libra" "Montana" "Panique"} {
frm20220={
{
block_maths={
{
opfld="rock"
value="$i"
}
}
constrain="YES"
}
}
frm20111={
{
{ "" "=" "BLOCK" "area_name" "$j" "" "" "" "" "" }
}
conexp=""
confile=""
keep_blocks="N"
}
}
}]
}

frm20220={
{
{ "rock" "rock + oxzones" }
}
constrain="YES"
}
}
frm20111={
{
{ "" ">" "BLOCK" "rock" "50" "" "" "" "" "" }
}
conexp=""
45
OCTOBER 2008
confile=""
keep_blocks="N"
}
}
}]
# Fill "zone" attribute with values 1 to 4 based on string file zones.str

foreach i {1 2 3 4} {
frm20220={
{
block_maths={
{
opfld="zone"
value="$i"
}
}
constrain="YES"
}
}
frm20111={
{
{ "" "INSIDE" "STRING" "ZONES.str" "0" "$i" "" "" "" "z" }
{ "" "" "" "" "" "" "" "" "" "" }
}
conexp=""
confile=""
keep_blocks="N"
}
}
}]
}
# Fill the "rock" attribute with 0 for all blocks completely in air (either above topo or in stope
voids)
frm20220={
{
{ "rock" "iif(air=1,0,rock)" }
}
constrain="NO"
}
}
}]
46
OCTOBER 2008
APPENDIX II: Complete Whittle Outputs
Main Vein Whittle Output

1 $ 49,186,835 $ 49,186,835 $ 49,186,835 1,582,374 1,883,477 2.38 0.43

2 $ 54,670,374 $ 54,670,374 $ 54,670,374 1,871,974 2,150,668 2.28 0.50
3 $ 64,253,646 $ 64,253,646 $ 64,253,646 2,451,295 2,801,098 2.13 0.66
4 $ 67,781,032 $ 67,781,032 $ 67,781,032 2,692,628 3,009,526 2.07 0.71
5 $ 73,862,944 $ 73,862,944 $ 73,862,944 3,134,959 3,518,460 2 0.83
6 $ 84,741,034 $ 84,654,014 $ 84,654,014 3,943,428 4,639,294 1.91 1.10
7 $ 94,383,359 $ 93,953,220 $ 93,953,220 4,711,900 5,449,056 1.83 1.29
8 $ 107,249,949 $ 105,299,570 $ 105,299,570 5,926,073 6,848,561 1.72 1.66
9 $ 120,235,379 $ 116,922,662 $ 116,922,662 7,442,968 7,786,380 1.62 2.04
10 $ 128,188,407 $ 124,337,632 $ 124,337,632 8,383,700 8,669,668 1.57 2.24
11 $ 150,059,315 $ 143,134,335 $ 143,134,335 11,582,397 10,614,836 1.44 2.91
12 $ 162,958,321 $ 154,371,230 $ 154,371,230 13,525,838 12,359,006 1.4 3.38
13 $ 173,113,782 $ 161,900,053 $ 161,900,053 15,241,282 13,883,281 1.37 3.82
14 $ 180,585,958 $ 168,110,054 $ 168,110,054 16,729,973 14,838,530 1.34 4.12
15 $ 196,386,112 $ 177,807,481 $ 177,807,481 20,072,878 18,053,124 1.29 5.00
16 $ 212,220,928 $ 193,367,055 $ 186,697,928 24,104,169 22,058,929 1.25 5.81
17 $ 223,247,924 $ 203,864,949 $ 191,448,710 27,610,009 24,965,197 1.21 6.71
18 $ 230,468,644 $ 210,525,043 $ 194,184,320 30,128,413 27,519,373 1.2 7.33
19 $ 237,156,705 $ 215,852,297 $ 195,203,171 32,837,599 30,088,435 1.18 8.07
20 $ 242,373,685 $ 219,718,771 $ 194,405,200 34,934,574 32,974,729 1.17 8.69
21 $ 248,630,226 $ 225,759,255 $ 190,250,594 37,982,519 37,793,208 1.15 9.47
22 $ 251,818,036 $ 228,908,346 $ 189,793,460 39,988,862 40,013,152 1.14 10.00
23 $ 255,524,001 $ 232,076,723 $ 185,830,705 42,353,627 43,323,451 1.13 10.77
24 $ 258,132,438 $ 234,205,990 $ 183,929,468 44,560,425 45,622,118 1.11 11.32
25 $ 261,358,106 $ 235,946,162 $ 174,747,222 47,413,286 51,503,117 1.11 12.43
26 $ 263,015,450 $ 236,702,803 $ 170,992,538 49,498,379 54,714,595 1.1 13.13
27 $ 264,144,857 $ 237,762,988 $ 167,246,645 50,871,869 57,194,614 1.09 13.51
28 $ 265,080,208 $ 238,606,996 $ 164,427,997 52,401,999 59,611,106 1.09 14.00
29 $ 265,476,784 $ 238,972,976 $ 162,439,999 53,082,641 60,751,519 1.08 14.24
30 $ 265,866,437 $ 239,254,610 $ 160,115,214 53,946,095 62,060,090 1.08 14.52
31 $ 266,431,359 $ 239,620,570 $ 156,852,325 55,621,255 64,462,719 1.07 15.02
32 $ 266,815,535 $ 239,875,703 $ 153,070,214 56,920,656 66,787,002 1.07 15.47
33 $ 267,089,699 $ 239,873,176 $ 150,467,868 58,330,292 69,020,508 1.06 15.92
34 $ 267,209,315 $ 239,888,298 $ 148,282,006 59,254,294 70,289,396 1.05 16.22
35 $ 267,270,136 $ 239,869,906 $ 146,371,521 59,998,280 71,401,421 1.05 16.43
36 $ 267,298,393 $ 239,662,516 $ 143,006,699 61,051,338 73,174,039 1.04 16.78
37 $ 267,266,185 $ 239,458,783 $ 139,730,688 62,076,035 74,911,428 1.04 17.12
38 $ 267,191,156 $ 239,431,358 $ 137,010,367 62,968,368 76,667,830 1.03 17.45
39 $ 267,029,186 $ 239,304,645 $ 131,693,348 64,091,126 79,768,530 1.03 17.98
40 $ 266,916,390 $ 239,115,925 $ 129,626,157 64,791,802 81,234,946 1.03 18.25
41 $ 266,779,946 $ 238,951,027 $ 127,350,902 65,520,160 82,562,544 1.02 18.51
47
OCTOBER 2008
42 $ 266,634,611 $ 238,654,947 $ 125,405,375 66,210,965 83,676,690 1.02 18.74

43 $ 266,482,781 $ 238,396,677 $ 123,218,415 66,852,419 84,708,083 1.01 18.95
44 $ 266,274,853 $ 238,374,202 $ 120,728,608 67,597,944 86,064,568 1.01 19.21
45 $ 265,855,803 $ 237,797,288 $ 114,840,995 68,877,713 89,412,208 1 19.79
46 $ 265,662,968 $ 237,536,300 $ 112,817,143 69,412,629 90,895,182 1 20.04
47 $ 265,386,179 $ 237,198,561 $ 109,793,251 70,106,225 92,940,036 1 20.38
48 $ 265,203,135 $ 236,948,049 $ 107,836,944 70,564,329 94,251,983 1 20.60
49 $ 264,964,110 $ 236,611,129 $ 105,793,786 71,127,582 96,111,165 0.99 20.90
50 $ 264,683,416 $ 236,215,018 $ 101,921,198 71,680,137 98,301,700 0.99 21.25
51 $ 264,513,705 $ 236,000,741 $ 100,427,265 72,030,305 99,362,905 0.99 21.42
52 $ 264,377,867 $ 235,814,857 $ 98,940,183 72,271,537 100,364,943 0.99 21.58
53 $ 264,090,374 $ 235,423,495 $ 97,203,333 72,836,455 102,225,486 0.99 21.88
54 $ 263,939,351 $ 235,220,016 $ 96,124,205 73,100,115 103,094,114 0.99 22.02
55 $ 263,557,997 $ 234,692,423 $ 91,892,030 73,699,824 105,880,484 0.98 22.45
56 $ 263,476,263 $ 234,586,397 $ 91,365,663 73,830,048 106,356,979 0.98 22.52
57 $ 263,328,487 $ 234,371,764 $ 89,575,553 74,069,937 107,459,227 0.98 22.69
58 $ 263,192,632 $ 234,167,917 $ 88,706,891 74,234,524 108,599,636 0.98 22.85
59 $ 263,098,808 $ 234,036,445 $ 88,083,736 74,390,242 109,117,918 0.98 22.94
60 $ 262,943,382 $ 233,831,824 $ 86,276,946 74,566,683 110,125,222 0.98 23.09
61 $ 262,772,435 $ 233,620,344 $ 85,353,554 74,748,508 111,103,476 0.98 23.23
62 $ 262,714,760 $ 233,547,827 $ 85,057,929 74,816,380 111,396,859 0.98 23.28
63 $ 262,527,698 $ 233,290,601 $ 83,439,566 75,035,276 112,598,174 0.98 23.45
64 $ 262,399,174 $ 233,110,936 $ 82,293,371 75,142,197 113,392,870 0.98 23.57
65 $ 262,243,902 $ 232,887,605 $ 81,166,153 75,290,468 114,601,539 0.98 23.74
66 $ 262,028,595 $ 232,565,906 $ 79,180,957 75,509,169 116,101,516 0.98 23.95
67 $ 261,942,499 $ 232,450,866 $ 78,752,717 75,607,655 116,617,494 0.98 24.03
68 $ 261,804,580 $ 232,263,141 $ 77,965,697 75,716,643 117,575,027 0.98 24.16
69 $ 261,620,990 $ 232,021,115 $ 76,906,565 75,904,829 118,774,500 0.98 24.33
70 $ 261,485,592 $ 231,844,052 $ 75,988,977 76,012,078 119,581,875 0.98 24.45
71 $ 261,433,469 $ 231,773,064 $ 75,649,795 76,060,403 119,922,711 0.98 24.50
72 $ 261,295,874 $ 231,577,553 $ 74,563,029 76,201,366 120,829,070 0.97 24.63
73 $ 261,195,852 $ 231,448,539 $ 74,164,240 76,258,714 121,422,838 0.97 24.71
74 $ 261,034,008 $ 231,218,587 $ 72,948,193 76,418,463 122,567,032 0.97 24.87
75 $ 260,939,741 $ 231,085,509 $ 72,361,729 76,495,463 123,124,879 0.97 24.95
76 $ 260,731,385 $ 230,810,020 $ 70,933,136 76,646,023 124,587,228 0.97 25.15
77 $ 260,609,105 $ 230,640,145 $ 70,107,673 76,727,379 125,385,659 0.97 25.26
78 $ 260,472,613 $ 230,457,497 $ 68,934,271 76,835,947 126,317,959 0.97 25.39
79 $ 260,324,773 $ 230,247,820 $ 67,886,532 76,949,886 127,348,913 0.97 25.54
80 $ 260,273,902 $ 230,175,285 $ 67,454,923 76,985,349 127,689,006 0.97 25.58
81 $ 260,186,183 $ 230,042,432 $ 66,875,767 77,040,339 128,482,964 0.97 25.69
82 $ 260,131,270 $ 229,958,447 $ 66,343,305 77,078,298 128,935,045 0.97 25.75
83 $ 260,007,377 $ 229,778,978 $ 65,489,781 77,184,776 129,742,648 0.97 25.87
84 $ 259,974,604 $ 229,734,232 $ 65,309,370 77,204,024 129,956,863 0.97 25.90
85 $ 259,936,120 $ 229,679,931 $ 65,051,346 77,220,752 130,259,404 0.97 25.94
86 $ 259,739,337 $ 229,416,673 $ 63,819,221 77,330,496 131,657,023 0.97 26.12
48
OCTOBER 2008
Colorado Whittle Output

1 $ 18,288,638 $ 18,288,638 $ 18,288,638 665,792 690,919 1.91 0.17

2 $ 22,204,582 $ 22,204,582 $ 22,204,582 835,977 979,191 1.88 0.23
3 $ 26,049,314 $ 26,049,314 $ 26,049,314 1,042,870 1,258,445 1.81 0.29
4 $ 35,542,290 $ 35,542,290 $ 35,542,290 1,672,874 1,631,271 1.62 0.42
5 $ 41,431,791 $ 41,431,791 $ 41,431,791 2,159,095 1,921,043 1.52 0.54
6 $ 47,889,506 $ 47,889,506 $ 47,889,506 2,700,650 2,422,271 1.46 0.68
7 $ 57,020,535 $ 57,020,535 $ 57,020,535 3,520,374 3,309,271 1.4 0.88
8 $ 63,162,302 $ 63,161,619 $ 63,161,619 4,116,871 3,892,236 1.36 1.03
9 $ 71,236,667 $ 71,104,377 $ 71,104,377 4,879,921 4,830,505 1.33 1.23
10 $ 86,975,800 $ 84,893,765 $ 84,893,765 6,468,575 7,275,656 1.3 1.81
11 $ 93,121,256 $ 90,391,727 $ 90,391,727 7,189,369 8,361,639 1.28 2.03
12 $ 99,850,630 $ 96,324,657 $ 96,324,657 8,027,335 9,542,055 1.26 2.33
13 $ 106,037,124 $ 101,665,346 $ 101,665,346 8,959,674 10,548,853 1.23 2.57
14 $ 112,374,233 $ 107,195,426 $ 107,195,426 9,950,659 11,661,963 1.21 2.78
15 $ 118,163,222 $ 111,846,347 $ 111,846,347 11,017,590 13,011,046 1.18 3.05
16 $ 130,226,936 $ 121,550,221 $ 121,550,221 13,271,646 15,999,544 1.14 3.66
17 $ 132,243,655 $ 123,118,061 $ 123,118,061 13,730,022 16,529,572 1.14 3.78
18 $ 134,777,617 $ 124,644,628 $ 124,644,628 14,295,091 17,715,424 1.13 4.00
19 $ 139,501,693 $ 127,895,674 $ 127,895,674 15,566,933 19,140,879 1.11 4.34
20 $ 143,892,597 $ 130,041,028 $ 130,041,028 16,825,252 20,963,273 1.09 4.72
21 $ 146,846,959 $ 131,350,077 $ 131,350,077 17,791,381 22,401,559 1.08 5.03
22 $ 147,910,235 $ 132,368,631 $ 132,207,448 18,157,974 22,858,488 1.07 5.13
23 $ 148,796,933 $ 133,261,466 $ 132,818,968 18,498,678 23,272,689 1.07 5.22
24 $ 151,530,480 $ 135,870,299 $ 134,071,580 19,631,572 25,324,750 1.05 5.62
25 $ 152,540,533 $ 136,827,941 $ 134,416,572 20,179,390 26,098,165 1.05 5.78
26 $ 153,152,486 $ 137,397,278 $ 134,532,993 20,546,075 26,813,053 1.04 5.92
27 $ 153,547,030 $ 137,743,346 $ 134,565,365 20,802,011 27,252,286 1.04 6.01
28 $ 154,521,574 $ 138,924,438 $ 134,661,550 21,482,031 28,606,273 1.03 6.26
29 $ 155,279,652 $ 139,543,669 $ 134,181,467 22,095,864 29,907,185 1.02 6.50
30 $ 155,918,534 $ 140,016,479 $ 133,796,342 22,762,072 31,254,022 1.01 6.75
31 $ 156,366,052 $ 140,246,579 $ 133,011,155 23,343,951 32,514,452 1.01 6.98
32 $ 156,560,671 $ 140,392,541 $ 132,802,157 23,650,103 33,038,155 1 7.09
33 $ 156,786,319 $ 140,458,832 $ 132,151,306 24,169,681 33,973,302 1 7.27
34 $ 157,138,912 $ 140,134,435 $ 129,432,762 25,165,505 36,938,490 0.99 7.76
35 $ 157,200,946 $ 139,959,362 $ 128,660,151 25,536,919 37,785,668 0.98 7.92
36 $ 157,270,352 $ 139,015,235 $ 125,783,571 26,712,323 42,849,396 0.98 8.70
37 $ 157,251,417 $ 138,897,398 $ 125,090,714 26,925,918 43,631,997 0.98 8.82
38 $ 157,217,618 $ 138,807,698 $ 124,728,919 27,081,311 44,044,153 0.98 8.89
39 $ 156,612,793 $ 138,008,938 $ 120,117,708 28,932,938 50,159,426 0.96 9.89
40 $ 156,480,883 $ 137,860,605 $ 119,444,078 29,239,120 51,224,802 0.96 10.06
41 $ 156,392,641 $ 137,756,320 $ 119,152,875 29,401,567 51,776,873 0.96 10.15
42 $ 155,455,647 $ 136,409,074 $ 114,829,566 30,737,456 57,905,595 0.95 11.08
43 $ 155,203,892 $ 136,091,518 $ 114,080,478 31,089,783 59,076,298 0.95 11.27
49
OCTOBER 2008
44 $ 154,927,717 $ 135,715,707 $ 113,248,447 31,466,623 60,221,127 0.94 11.46

45 $ 154,796,023 $ 135,541,209 $ 112,973,528 31,594,624 60,887,080 0.94 11.56
46 $ 154,059,321 $ 134,488,915 $ 110,535,089 32,341,356 64,224,659 0.94 12.07
47 $ 153,420,749 $ 133,631,688 $ 108,495,040 33,020,959 66,465,145 0.93 12.44
48 $ 153,314,528 $ 133,468,103 $ 108,213,503 33,120,581 66,906,089 0.93 12.50
49 $ 152,832,400 $ 132,728,634 $ 106,662,159 33,556,934 68,743,617 0.93 12.79
50 $ 152,780,170 $ 132,653,438 $ 106,548,745 33,596,089 68,985,068 0.93 12.82
51 $ 152,562,204 $ 132,310,134 $ 105,851,363 33,739,232 69,918,979 0.93 12.96
52 $ 152,352,390 $ 132,028,187 $ 105,229,474 33,890,267 70,708,212 0.93 13.07
53 $ 152,173,114 $ 131,812,923 $ 104,927,808 34,034,289 71,194,874 0.92 13.15
54 $ 151,882,239 $ 131,441,554 $ 104,306,061 34,227,754 72,045,452 0.92 13.28
55 $ 151,719,444 $ 131,209,763 $ 103,829,830 34,338,357 72,545,957 0.92 13.36
56 $ 151,533,637 $ 130,951,954 $ 103,363,249 34,437,590 73,120,557 0.92 13.44
57 $ 151,431,085 $ 130,823,729 $ 103,200,362 34,482,342 73,388,879 0.92 13.48
58 $ 151,295,168 $ 130,639,432 $ 102,923,715 34,545,122 73,701,872 0.92 13.53
59 $ 151,033,955 $ 130,292,333 $ 102,491,975 34,719,091 74,401,709 0.92 13.64
60 $ 150,269,797 $ 129,109,347 $ 100,123,610 35,120,463 76,861,393 0.92 14.00
61 $ 149,909,222 $ 128,657,014 $ 99,384,752 35,266,925 77,833,883 0.91 14.14
62 $ 149,644,023 $ 128,327,875 $ 98,905,120 35,369,160 78,531,487 0.91 14.24
63 $ 149,499,978 $ 128,130,921 $ 98,547,327 35,427,461 78,943,987 0.91 14.30
64 $ 149,145,490 $ 127,673,160 $ 97,842,122 35,594,235 79,917,090 0.91 14.44
65 $ 149,031,623 $ 127,508,743 $ 97,455,467 35,637,250 80,264,332 0.91 14.49
66 $ 148,909,584 $ 127,355,512 $ 97,230,112 35,685,768 80,587,492 0.91 14.53
67 $ 148,565,338 $ 126,874,680 $ 96,475,665 35,791,019 81,619,887 0.91 14.68
68 $ 148,344,470 $ 126,574,967 $ 96,050,000 35,873,055 82,237,103 0.91 14.76
69 $ 148,197,277 $ 126,377,265 $ 95,800,087 35,928,063 82,665,341 0.91 14.82
70 $ 148,048,339 $ 126,167,730 $ 95,437,603 35,972,805 83,081,385 0.91 14.88
71 $ 147,892,842 $ 125,943,249 $ 95,103,768 36,024,527 83,486,104 0.91 14.94
72 $ 147,753,510 $ 125,758,198 $ 94,829,667 36,055,616 83,899,586 0.91 14.99
73 $ 147,664,934 $ 125,636,873 $ 94,641,538 36,076,142 84,192,690 0.91 15.03
74 $ 147,471,433 $ 125,400,239 $ 94,310,731 36,154,236 84,658,500 0.91 15.10
75 $ 146,941,141 $ 124,757,590 $ 93,513,439 36,286,581 85,978,754 0.91 15.28
76 $ 146,750,855 $ 124,525,110 $ 93,137,829 36,335,903 86,438,418 0.91 15.35
77 $ 146,693,742 $ 124,454,003 $ 93,043,092 36,356,979 86,578,335 0.91 15.37
78 $ 146,495,015 $ 124,184,744 $ 92,623,467 36,406,754 87,121,289 0.9 15.44
79 $ 146,284,058 $ 123,924,008 $ 92,282,933 36,461,578 87,637,897 0.9 15.51
80 $ 146,042,270 $ 123,596,038 $ 91,796,563 36,514,558 88,409,087 0.9 15.62
81 $ 145,841,298 $ 123,308,815 $ 91,291,596 36,571,060 89,010,417 0.9 15.70
82 $ 145,657,819 $ 123,064,858 $ 90,948,295 36,609,535 89,533,440 0.9 15.77
83 $ 145,545,089 $ 122,916,994 $ 90,751,739 36,619,537 89,829,250 0.9 15.81
84 $ 145,426,346 $ 122,754,010 $ 90,506,249 36,642,767 90,140,033 0.9 15.85
85 $ 145,326,271 $ 122,632,908 $ 90,371,313 36,656,218 90,412,452 0.9 15.88
86 $ 145,204,212 $ 122,453,300 $ 90,017,131 36,673,158 90,818,556 0.9 15.94
50
OCTOBER 2008
Holy Moses Basalt Whittle Output

1 $ 7,074,317 $ 7,074,317 $ 7,074,317 250,046 249,142 1.96 0.12

2 $ 7,702,232 $ 7,702,232 $ 7,702,232 285,172 294,336 1.9 0.14
3 $ 9,702,598 $ 9,702,598 $ 9,702,598 380,146 473,512 1.86 0.21
4 $ 23,924,530 $ 23,924,530 $ 23,924,530 1,331,795 1,673,423 1.57 0.75
5 $ 26,638,121 $ 26,638,121 $ 26,638,121 1,556,914 1,825,040 1.53 0.85
6 $ 28,212,358 $ 28,212,358 $ 28,212,358 1,682,852 2,037,472 1.52 0.93
7 $ 29,990,367 $ 29,990,358 $ 29,990,358 1,851,151 2,162,300 1.49 1.00
8 $ 32,326,509 $ 32,275,554 $ 32,275,554 2,079,162 2,347,233 1.45 1.11
9 $ 32,716,942 $ 32,647,112 $ 32,647,112 2,116,038 2,393,488 1.45 1.13
10 $ 37,822,790 $ 37,337,931 $ 37,337,931 2,668,581 2,931,632 1.38 1.40
11 $ 39,756,810 $ 38,995,833 $ 38,995,833 2,881,520 3,203,922 1.36 1.52
12 $ 44,288,673 $ 42,752,775 $ 42,752,775 3,514,927 3,889,203 1.3 1.85
13 $ 45,323,636 $ 43,642,233 $ 43,642,233 3,664,573 3,993,820 1.29 1.91
14 $ 47,870,567 $ 45,854,430 $ 45,854,430 4,061,705 4,296,163 1.26 2.09
15 $ 57,680,874 $ 52,971,442 $ 52,971,442 5,593,947 6,862,689 1.21 3.11
16 $ 63,532,418 $ 57,375,927 $ 57,375,927 6,646,826 8,651,295 1.19 3.82
17 $ 65,305,638 $ 58,690,440 $ 58,690,440 7,093,534 9,115,366 1.17 4.05
18 $ 66,262,360 $ 59,550,988 $ 59,550,988 7,336,462 9,224,921 1.16 4.14
19 $ 67,963,447 $ 60,701,817 $ 60,701,817 7,741,213 9,917,165 1.15 4.41
20 $ 68,847,777 $ 61,294,961 $ 61,294,961 8,022,621 10,117,944 1.14 4.54
21 $ 70,220,510 $ 62,380,632 $ 61,315,045 8,390,788 11,017,499 1.14 4.85
22 $ 71,446,269 $ 63,451,196 $ 61,667,312 8,832,144 11,538,166 1.12 5.09
23 $ 72,306,308 $ 64,247,286 $ 61,783,689 9,135,828 12,076,472 1.11 5.30
24 $ 73,851,866 $ 65,746,627 $ 61,576,343 9,799,082 13,371,003 1.1 5.79
25 $ 74,113,051 $ 65,997,365 $ 61,488,415 9,939,180 13,535,890 1.09 5.87
26 $ 74,641,823 $ 66,509,381 $ 61,520,106 10,313,737 13,733,844 1.08 6.01
27 $ 75,489,680 $ 67,242,950 $ 61,314,500 10,885,237 14,390,074 1.06 6.32
28 $ 76,109,877 $ 67,675,006 $ 60,398,167 11,372,067 15,214,146 1.05 6.65
29 $ 76,408,436 $ 67,904,593 $ 60,161,980 11,680,664 15,472,979 1.04 6.79
30 $ 76,603,698 $ 68,060,630 $ 59,739,077 11,888,483 15,930,451 1.03 6.95
31 $ 76,793,453 $ 68,190,467 $ 59,285,403 12,104,067 16,492,237 1.03 7.15
32 $ 76,954,507 $ 68,242,640 $ 58,704,944 12,370,925 16,901,663 1.02 7.32
33 $ 77,057,484 $ 68,226,899 $ 58,148,556 12,602,291 17,270,303 1.01 7.47
34 $ 77,196,266 $ 68,139,150 $ 56,892,725 13,063,338 17,987,952 1 7.76
35 $ 77,233,810 $ 68,051,890 $ 56,065,256 13,289,412 18,393,223 1 7.92
36 $ 77,231,264 $ 67,976,883 $ 55,514,123 13,462,421 18,761,255 0.99 8.06
37 $ 77,211,320 $ 67,943,912 $ 54,645,827 13,737,904 19,510,667 0.99 8.31
38 $ 77,154,062 $ 67,804,933 $ 53,753,333 14,051,157 20,017,329 0.98 8.52
39 $ 77,090,646 $ 67,717,059 $ 53,082,224 14,285,282 20,370,444 0.97 8.66
40 $ 77,043,693 $ 67,615,535 $ 52,673,209 14,435,250 20,513,381 0.97 8.74
41 $ 76,889,392 $ 67,363,072 $ 51,411,753 14,758,973 21,192,729 0.96 8.99
42 $ 76,630,197 $ 67,045,309 $ 50,100,320 15,142,521 22,101,639 0.95 9.31
43 $ 76,468,394 $ 66,721,626 $ 48,943,624 15,394,164 22,608,007 0.95 9.50
51
OCTOBER 2008
44 $ 76,321,569 $ 66,534,048 $ 48,312,264 15,599,983 23,000,094 0.94 9.65

45 $ 76,039,227 $ 66,026,435 $ 46,441,950 15,927,981 23,969,432 0.94 9.97
46 $ 75,956,008 $ 66,528,688 $ 45,913,792 16,016,096 24,244,665 0.94 10.07
47 $ 75,762,816 $ 65,675,478 $ 45,059,959 16,224,950 24,657,310 0.93 10.22
48 $ 75,668,423 $ 66,202,528 $ 44,540,245 16,298,889 24,983,640 0.93 10.32
49 $ 75,509,218 $ 66,017,100 $ 43,605,619 16,408,078 25,463,522 0.93 10.47
50 $ 75,372,084 $ 65,862,390 $ 43,129,815 16,515,012 25,727,621 0.93 10.56
51 $ 75,281,912 $ 65,758,316 $ 42,730,770 16,585,154 25,946,840 0.93 10.63
52 $ 75,140,553 $ 65,593,649 $ 41,966,061 16,664,623 26,267,021 0.92 10.73
53 $ 74,856,292 $ 65,269,087 $ 40,986,513 16,836,781 26,832,746 0.92 10.92
54 $ 74,699,809 $ 65,089,889 $ 40,428,479 16,941,119 27,187,526 0.92 11.03
55 $ 74,553,811 $ 64,930,542 $ 39,932,915 17,019,282 27,484,246 0.92 11.13
56 $ 74,441,175 $ 64,807,354 $ 39,652,692 17,047,401 27,659,416 0.92 11.18
57 $ 74,318,830 $ 64,672,923 $ 39,252,122 17,125,707 27,854,725 0.91 11.25
58 $ 74,077,833 $ 64,392,737 $ 38,240,846 17,227,159 28,343,193 0.91 11.39
59 $ 73,926,493 $ 64,218,924 $ 37,812,799 17,306,629 28,589,863 0.91 11.47
60 $ 73,796,145 $ 64,067,365 $ 37,386,747 17,356,021 28,847,411 0.91 11.55
61 $ 73,400,503 $ 63,596,893 $ 36,049,769 17,521,736 29,599,972 0.91 11.78
62 $ 73,018,760 $ 63,138,015 $ 34,657,119 17,681,930 30,457,677 0.9 12.03
63 $ 72,884,219 $ 62,987,101 $ 34,138,282 17,734,797 30,726,125 0.9 12.12
64 $ 72,770,129 $ 62,858,740 $ 33,824,883 17,761,883 30,968,448 0.9 12.18
65 $ 72,703,550 $ 62,783,422 $ 33,641,482 17,779,644 31,102,217 0.9 12.22
66 $ 72,635,662 $ 62,708,856 $ 33,464,979 17,795,537 31,227,546 0.9 12.26
67 $ 72,531,992 $ 62,589,005 $ 33,166,422 17,817,579 31,487,397 0.9 12.33
68 $ 72,377,398 $ 62,411,481 $ 32,712,769 17,874,619 31,777,654 0.9 12.41
69 $ 72,301,471 $ 62,324,612 $ 32,491,818 17,885,660 31,917,636 0.9 12.45
70 $ 72,216,033 $ 62,228,098 $ 32,267,321 17,910,837 32,067,355 0.9 12.49
71 $ 72,107,886 $ 62,093,714 $ 31,748,907 17,927,479 32,315,228 0.9 12.56
72 $ 72,008,676 $ 61,979,766 $ 31,482,585 17,964,505 32,491,921 0.9 12.61
73 $ 71,918,740 $ 61,874,283 $ 31,188,164 18,003,349 32,647,724 0.9 12.66
74 $ 71,894,498 $ 61,846,419 $ 31,099,673 18,010,019 32,709,401 0.9 12.68
75 $ 71,870,313 $ 61,818,783 $ 31,035,001 18,015,322 32,756,797 0.9 12.69
76 $ 71,728,840 $ 61,652,689 $ 30,622,457 18,048,736 33,024,891 0.9 12.77
77 $ 71,618,655 $ 61,514,161 $ 30,182,488 18,066,252 33,339,567 0.9 12.85
78 $ 71,521,650 $ 61,398,543 $ 29,883,466 18,086,772 33,525,247 0.9 12.90
79 $ 71,430,805 $ 61,291,834 $ 29,613,887 18,112,951 33,729,282 0.9 12.96
80 $ 71,155,901 $ 60,985,976 $ 28,964,994 18,172,993 34,257,329 0.9 13.11
81 $ 71,124,027 $ 60,951,673 $ 28,871,094 18,178,048 34,329,139 0.9 13.13
82 $ 71,057,535 $ 60,873,128 $ 28,617,748 18,189,792 34,464,238 0.89 13.16
83 $ 71,009,017 $ 60,818,962 $ 28,510,477 18,198,357 34,555,425 0.89 13.19
84 $ 70,921,703 $ 60,718,856 $ 28,267,924 18,211,544 34,735,504 0.89 13.24
85 $ 70,817,493 $ 60,601,605 $ 28,033,913 18,215,718 34,939,319 0.89 13.29
86 $ 70,746,018 $ 60,517,054 $ 27,798,516 18,229,583 35,083,560 0.89 13.33
52
OCTOBER 2008
Montana Whittle Output

1 $ 7,374,655 $ 7,374,655 $ 7,374,655 155,686 179,022 3.09 0.08

2 $ 7,979,485 $ 7,979,485 $ 7,979,485 178,147 214,724 2.97 0.10
3 $ 8,157,139 $ 8,157,139 $ 8,157,139 183,264 239,007 2.97 0.11
4 $ 9,432,629 $ 9,432,629 $ 9,432,629 244,287 341,455 2.68 0.15
5 $ 10,667,807 $ 10,667,807 $ 10,667,807 298,557 465,937 2.56 0.19
6 $ 10,758,747 $ 10,758,747 $ 10,758,747 301,513 482,295 2.56 0.20
7 $ 10,966,704 $ 10,966,704 $ 10,966,704 312,416 509,217 2.53 0.21
8 $ 11,233,084 $ 11,233,084 $ 11,233,084 334,410 526,214 2.45 0.22
9 $ 11,530,264 $ 11,530,264 $ 11,530,264 366,386 551,312 2.33 0.23
10 $ 11,623,515 $ 11,623,515 $ 11,623,515 382,742 563,924 2.27 0.24
11 $ 11,789,779 $ 11,789,779 $ 11,789,779 390,023 613,851 2.28 0.25
12 $ 11,846,404 $ 11,846,404 $ 11,846,404 395,474 618,400 2.26 0.25
13 $ 11,893,620 $ 11,893,620 $ 11,893,620 401,545 622,329 2.25 0.26
14 $ 12,257,836 $ 12,257,836 $ 12,257,836 433,066 707,501 2.19 0.29
15 $ 12,335,268 $ 12,335,268 $ 12,335,268 439,908 739,216 2.18 0.29
16 $ 12,630,693 $ 12,630,693 $ 12,630,693 477,160 839,422 2.11 0.33
17 $ 13,166,461 $ 13,166,461 $ 13,166,461 544,815 1,088,395 2.02 0.41
18 $ 13,554,857 $ 13,554,857 $ 13,554,857 613,936 1,262,054 1.93 0.47
19 $ 13,645,355 $ 13,645,355 $ 13,645,355 622,966 1,340,572 1.93 0.49
20 $ 13,704,463 $ 13,704,463 $ 13,704,463 637,302 1,374,336 1.91 0.50
21 $ 13,853,790 $ 13,853,790 $ 13,853,790 663,554 1,496,218 1.89 0.54
22 $ 13,895,072 $ 13,895,072 $ 13,895,072 675,557 1,522,068 1.87 0.55
23 $ 14,447,999 $ 14,447,999 $ 14,447,999 827,807 2,147,201 1.76 0.74
24 $ 14,656,351 $ 14,656,351 $ 14,656,351 899,706 2,608,659 1.74 0.88
25 $ 14,666,539 $ 14,666,539 $ 14,666,539 904,688 2,623,597 1.74 0.88
26 $ 14,707,179 $ 14,707,179 $ 14,707,179 936,614 2,740,943 1.71 0.92
27 $ 14,723,047 $ 14,723,047 $ 14,723,047 960,741 3,035,614 1.72 1.00
28 $ 14,756,493 $ 14,755,320 $ 14,755,320 977,555 3,078,800 1.71 1.01
29 $ 14,901,134 $ 14,858,708 $ 14,858,708 1,045,747 3,382,792 1.67 1.11
30 $ 15,013,098 $ 14,911,309 $ 14,911,309 1,141,046 3,626,922 1.6 1.19
31 $ 15,095,239 $ 14,851,819 $ 14,851,819 1,187,565 4,117,792 1.61 1.33
32 $ 15,102,176 $ 14,849,535 $ 14,849,535 1,199,108 4,144,565 1.6 1.34
33 $ 15,101,626 $ 14,847,135 $ 14,847,135 1,207,211 4,146,462 1.59 1.34
34 $ 15,092,274 $ 14,811,641 $ 14,811,641 1,234,419 4,217,050 1.57 1.36
35 $ 15,087,635 $ 14,805,103 $ 14,805,103 1,241,118 4,220,351 1.57 1.37
36 $ 15,055,161 $ 14,748,628 $ 14,748,628 1,267,594 4,293,815 1.55 1.39
37 $ 14,942,935 $ 14,540,013 $ 14,540,013 1,333,938 4,545,968 1.51 1.47
38 $ 14,663,771 $ 14,030,007 $ 14,030,007 1,436,830 5,115,899 1.47 1.64
39 $ 14,620,195 $ 13,969,166 $ 13,969,166 1,454,897 5,157,832 1.46 1.65
40 $ 14,416,725 $ 13,652,250 $ 13,652,250 1,482,603 5,438,215 1.45 1.73
41 $ 14,411,869 $ 13,644,868 $ 13,644,868 1,483,226 5,447,592 1.45 1.73
42 $ 14,181,004 $ 13,233,120 $ 13,233,120 1,514,523 5,845,731 1.45 1.84
43 $ 14,170,240 $ 13,219,647 $ 13,219,647 1,518,884 5,851,370 1.45 1.84
53
OCTOBER 2008
44 $ 14,114,237 $ 13,133,734 $ 13,133,734 1,533,362 5,916,892 1.44 1.86

45 $ 13,764,245 $ 12,590,666 $ 12,590,666 1,580,382 6,369,394 1.43 1.99
46 $ 13,732,327 $ 12,544,526 $ 12,544,526 1,583,494 6,426,156 1.43 2.00
47 $ 13,717,583 $ 12,529,668 $ 12,529,668 1,585,984 6,443,666 1.43 2.01
48 $ 13,522,682 $ 12,285,059 $ 12,285,059 1,614,782 6,684,268 1.42 2.07
49 $ 13,090,435 $ 11,705,387 $ 11,705,387 1,657,273 7,189,950 1.41 2.21
50 $ 13,029,614 $ 11,621,082 $ 11,621,082 1,659,919 7,276,956 1.41 2.23
51 $ 12,918,845 $ 11,464,224 $ 11,464,224 1,664,587 7,422,168 1.42 2.27
52 $ 12,890,034 $ 11,432,265 $ 11,432,265 1,667,388 7,439,367 1.42 2.28
53 $ 12,834,952 $ 11,367,839 $ 11,367,839 1,671,745 7,485,010 1.41 2.29
54 $ 12,772,953 $ 11,287,532 $ 11,287,532 1,676,106 7,540,523 1.41 2.30
55 $ 12,756,556 $ 11,269,743 $ 11,269,743 1,676,106 7,550,523 1.41 2.31
56 $ 12,687,364 $ 11,173,128 $ 11,173,128 1,677,818 7,628,811 1.41 2.33
57 $ 12,542,742 $ 10,974,861 $ 10,974,861 1,686,843 7,759,786 1.41 2.36
58 $ 12,512,774 $ 10,940,364 $ 10,940,364 1,687,932 7,778,697 1.41 2.37
59 $ 12,390,385 $ 10,780,422 $ 10,780,422 1,694,779 7,881,850 1.41 2.39
60 $ 12,201,784 $ 10,499,631 $ 10,499,631 1,703,966 8,080,863 1.41 2.45
54
OCTOBER 2008
APPENDIX III: Production Schedule

HG Stockpile LG Stockpile Ore Waste Mine
HG Mine to HG Stockpile to Cummulative LG Mine to LG Stockpile to Cummulative To Mill tonne Strip Total
HG Mined HG Mine to Mill LG Mined LG Mine to Mill
Period Stockpile Mill Stockpile Mill Mined Ratio Mining
tonne g/t tonne g/t tonne g/t tonne g/t tonne g/t tonne g/t tonne g/t tonne g/t tonne g/t tonne g/t tonne g/t
pre-prod 105,957 1.97 60,000 1.36 45,957 2.83 45,957 2.83 69,920 0.53 - 0.53 69,920 0.53 69,920 0.53 60,000 1.36 728,124 4.14 904,000
M1 254,096 1.75 254,096 1.75 - - 45,957 2.83 - - 205,620 0.51 33,280 0.51 172,339 0.51 - - 242,259 0.52 333,333 1.78 540,284 1.18 1,000,000
M2 352,549 2.18 333,333 2.18 19,216 2.18 - - 19,216 2.18 102,099 0.56 - - 102,099 0.56 - - 344,358 0.53 333,333 2.18 544,511 1.20 999,159
M3 389,456 2.30 333,333 2.30 56,122 2.30 - - 75,338 2.27 139,502 0.58 - - 139,502 0.58 - - 483,860 0.54 333,333 2.30 521,042 0.99 1,050,000
M4 359,105 2.41 333,333 2.41 25,771 2.41 - - 101,109 2.30 189,596 0.56 - - 189,596 0.56 - - 673,456 0.55 333,333 2.41 501,300 0.91 1,050,000
M5 251,317 2.69 251,317 2.69 - - 82,017 2.30 19,093 2.30 163,446 0.53 - - 163,446 0.53 - - 836,902 0.55 333,333 2.59 635,237 1.53 1,050,000
M6 328,133 2.18 328,133 2.18 - - 5,200 2.30 13,892 2.30 168,209 0.54 - - 168,209 0.54 - - 1,005,111 0.55 333,333 2.18 522,124 1.05 1,018,466
M7 366,683 1.48 333,333 1.48 33,349 1.48 - - 47,242 1.72 212,335 0.55 - - 212,335 0.55 - - 1,217,446 0.55 333,333 1.48 420,983 0.73 1,000,000
M8 315,631 1.70 315,631 1.70 - - 17,702 1.72 29,540 1.72 333,320 0.57 - - 333,320 0.57 - - 1,550,765 0.55 333,333 1.70 397,436 0.61 1,046,387
M9 294,923 1.88 294,923 1.88 - - 29,540 1.72 - - 357,247 0.55 8,871 0.55 348,376 0.55 - - 1,899,142 0.55 333,333 1.83 397,830 0.61 1,050,000
M10 388,823 1.91 333,333 1.91 55,490 1.91 - - 55,490 1.91 299,228 0.54 - - 299,228 0.54 - - 2,198,370 0.55 333,333 1.91 361,949 0.53 1,050,000
M11 410,043 1.95 333,333 1.95 76,710 1.95 - - 132,200 1.93 287,641 0.54 - - 287,641 0.54 - - 2,486,011 0.55 333,333 1.95 352,315 0.50 1,050,000
M12 377,064 1.99 333,333 1.99 43,731 1.99 - - 175,931 1.95 290,257 0.54 - - 290,257 0.54 - - 2,776,268 0.55 333,333 1.99 382,769 0.57 1,050,090
M13 174,760 2.17 174,760 2.17 - - 158,574 1.95 17,357 1.95 243,105 0.53 - - 243,105 0.53 - - 3,019,373 0.55 333,333 2.07 632,135 1.51 1,050,000
M14 258,200 2.24 258,200 2.24 - - 17,357 1.95 - - 215,563 0.54 57,776 0.54 157,787 0.54 - - 3,177,160 0.55 333,333 1.93 576,236 1.22 1,050,000
M15 349,398 2.31 333,333 2.31 16,065 2.31 - - 16,065 2.31 252,164 0.54 - - 252,164 0.54 - - 3,429,324 0.55 333,333 2.31 448,438 0.75 1,050,000
M16 496,687 1.99 333,333 1.99 163,354 1.99 - - 179,418 2.02 232,009 0.56 - - 232,009 0.56 - - 3,661,333 0.55 333,333 1.99 321,304 0.44 1,050,000
M17 464,431 2.08 333,333 2.08 131,098 2.08 - - 310,517 2.04 200,449 0.58 - - 200,449 0.58 - - 3,861,783 0.55 333,333 2.08 382,526 0.58 1,047,407
M18 269,124 2.15 269,124 2.15 - - 64,209 2.04 246,308 2.04 206,668 0.56 - - 206,668 0.56 - - 4,068,450 0.55 333,333 2.13 574,208 1.21 1,050,000
M19 218,947 2.26 218,947 2.26 - - 114,387 2.04 131,921 2.04 175,365 0.55 - - 175,365 0.55 - - 4,243,815 0.55 333,333 2.18 604,754 1.53 999,066
M20 208,444 2.28 208,444 2.28 - - 124,889 2.04 7,032 2.04 196,321 0.53 - - 196,321 0.53 - - 4,440,136 0.55 333,333 2.19 595,235 1.47 1,000,000
M21 325,917 2.14 325,917 2.14 - - 7,032 2.04 - - 188,690 0.54 385 0.54 188,306 0.54 - - 4,628,442 0.55 333,333 2.14 485,393 0.94 1,000,000
M22 361,857 1.76 333,333 1.76 28,524 1.76 - - 28,524 1.76 181,356 0.61 - - 181,356 0.61 - - 4,809,798 0.55 333,333 1.76 456,787 0.84 1,000,000
M23 225,326 1.89 225,326 1.89 - - 28,524 1.76 - - 69,456 0.57 69,456 0.57 - - 10,028 0.55 4,799,770 0.55 333,333 1.57 705,218 2.39 1,000,000
M24 248,793 2.40 248,793 2.40 - - - - - - 119,898 0.57 84,540 0.60 35,358 0.57 - - 4,835,128 0.55 333,333 1.94 1,830,741 4.97 2,199,432
Y3 2,610,338 1.47 2,610,338 1.47 - - - - - - 2,290,961 0.53 2,290,961 0.53 - - 98,702 0.55 4,736,426 0.55 5,000,000 1.02 7,156,758 1.46 12,058,056
Y4 3,665,676 1.33 3,665,676 1.33 - - - - - - 3,285,702 0.54 1,334,324 0.54 1,951,378 0.54 - - 6,687,804 0.55 5,000,000 1.12 5,048,622 0.73 12,000,000
Y5 5,002,516 1.50 5,000,000 1.50 2,516 1.50 - - 2,516 1.50 3,186,844 0.55 - - 3,186,844 0.55 - - 9,874,648 0.55 5,000,000 1.50 3,810,640 0.47 12,000,000
Y6 2,282,118 1.43 2,282,118 1.43 - - 2,516 1.50 - - 1,995,419 0.53 1,995,419 0.53 - - 719,947 0.55 9,154,701 0.55 5,000,000 0.94 7,713,928 1.80 11,991,464
Y7 1,883,673 1.36 1,883,673 1.36 - - - - - - 2,286,972 0.55 2,286,972 0.55 - - 829,355 0.55 8,325,346 0.55 5,000,000 0.86 7,829,355 1.88 12,000,000
Y8 1,510,930 1.47 1,510,930 1.47 - - - - - - 2,312,834 0.55 2,312,834 0.55 - - 1,176,236 0.55 7,149,110 0.55 5,000,000 0.83 8,176,236 2.14 12,000,000
Y9 3,767,619 1.31 3,767,619 1.31 - - - - - - 2,690,312 0.56 1,232,381 0.56 1,457,931 0.56 - - 8,607,041 0.55 5,000,000 1.12 5,542,069 0.86 12,000,000
Y10 2,658,944 1.55 2,658,944 1.55 - - - - - - 2,105,061 0.57 2,105,061 0.57 - - 235,995 0.55 8,371,046 0.55 5,000,000 1.09 7,233,239 1.52 11,997,244
Y11 2,866,241 1.36 2,866,241 1.36 - - - - - - 2,699,805 0.56 2,133,759 0.56 566,046 0.56 - - 8,937,092 0.55 5,000,000 1.02 6,430,179 1.16 11,996,225
Y12 2,411,034 1.19 2,411,034 1.19 - - - - - - 3,391,347 0.55 2,588,966 0.55 802,381 0.55 - - 9,739,473 0.55 5,000,000 0.86 6,189,827 1.07 11,992,208
Y13 3,175,295 1.32 3,175,295 1.32 - - - - - - 3,843,930 0.56 1,824,705 0.56 2,019,225 0.56 - - 11,758,698 0.55 5,000,000 1.04 4,980,775 0.71 12,000,000
Y14 3,537,846 1.38 3,537,846 1.38 - - - - - - 3,556,870 0.57 1,462,154 0.57 2,094,716 0.57 - - 13,853,414 0.56 5,000,000 1.14 4,905,284 0.69 12,000,000
Y15 3,727,612 1.41 3,727,612 1.41 - - - - - - 3,575,887 0.55 1,272,388 0.55 2,303,500 0.55 - - 16,156,914 0.55 5,000,000 1.19 4,654,029 0.64 11,957,529
Y16 419,027 1.51 419,027 1.51 - - - - - - 595,676 0.57 595,676 0.57 - - 3,985,297 0.55 12,171,617 0.55 5,000,000 0.64 808,470 0.80 1,823,173
Y17 - - - - - - - - - - - - - - - - 5,000,000 0.55 7,171,617 0.55 5,000,000 0.55 - - -
Y18 - - - - - - - - - - - - - - - - 5,000,000 0.55 2,171,617 0.55 5,000,000 0.55 - - -
Y19 - - - - - - - - - - - - - - - - 2,171,617 0.55 - - 2,171,617 0.55 - - -
55 LQS2008.014
OCTOBER 2008
% of period in
% of period in
% of period in
% of period in
% of period in
% of period in
% of period in
% of period in
Bench (m) Bench (m) Bench (m) Bench (m) Bench (m) Bench (m) Acitve Pit Bench (m) Bench (m)
Acitve Pit or Acitve Pit or Acitve Pit or Acitve Pit or Acitve Pit or Acitve Pit or Acitve Pit or
pit
pit
pit
pit
pit
pit
pit
pit
or
Pushback Pushback Pushback Pushback Pushback Pushback Pushback
Pushback
From To From To From To From To From To From To From To From To
- - - - - - - - HMB East 47% 150-2 90-2 - - - - - - - - - - - - - - - - HMB West 44% 90 50 pre-prod
- - - - - - - - HMB East 50% 90-2 70-2 - - - - - - - - - - - - - - - - HMB West 50% 50 30 M1
- - - - - - - - HMB East 50% 70-2 50-2 Libra West 42% 70 40 - - - - - - - - - - - - HMB West 8% 30 30 M2
- - - - - - - - HMB East 50% 50-2 40-2 Libra West 55% 40 30 - - - - - - - - - - - - - - - - M3
- - - - - - - - HMB East 50% 40-2 90-1 Libra West 55% 30 20 - - - - - - - - - - - - - - - - M4
- - - - - - - - HMB East 50% 90-1 70-1 Libra West 55% 20 - - - - - - - - - - - - - - - - - M5
- - - - - - - - HMB East 50% 70-1 60-1 Libra West 32% - -20 - - - - Libra1 20% 160 140 - - - - - - - - M6
- - - - - - - - HMB East 50% 60-1 50-1 - - - - - - - - Libra1 50% 140 110 - - - - - - - - M7
Binstar 35% 160 130 - - - - HMB East 50% 50-1 40-1 - - - - - - - - Libra1 20% 110 90 - - - - - - - - M8
Binstar 55% 130 110 - - - - HMB East 50% 40-1 30-1 - - - - - - - - - - - - - - - - - - - - M9
Binstar 55% 100 90 - - - - HMB East 37% 10-1 -20-1 - - - - MV1 13% 130 100 - - - - - - - - - - - - M12
Binstar 55% 90 90 - - - - - - - - - - - - MV1 50% 100 70 - - - - - - - - - - - - M13
Binstar 55% 90 80 - - - - - - - - - - - - MV1 50% 70 60 - - - - - - - - - - - - M14
Binstar 55% 80 80 - - - - - - - - - - - - MV1 50% 60 40 - - - - - - - - - - - - M15
Binstar 55% 80 70 - - - - - - - - - - - - MV1 50% 40 10 - - - - - - - - - - - - M16
Binstar 55% 70 60 Colorado1 13% 310-1 300-1 - - - - - - - - MV1 37% 10 -10 - - - - - - - - - - - - M17
Binstar 55% 60 40 Colorado1 50% 300-1 290-1 - - - - - - - - - - - - - - - - - - - - - - - - M18
Binstar 17% 40 20 Colorado1 50% 290-1 280-1 - - - - - - - - - - - - - - - - Montana 33% 100 70 - - - - M19
- - - - Colorado1 59% 280-1 270-1 - - - - - - - - - - - - - - - - Montana 41% 70 60 - - - - M20
HMB East- 2&3 100% 2-150 2-70 Colorado1 64% 160-3 130-3 - - - - - - - - - - - - - - - - Montana 36% 30 10 - - - - M24
HMB East- 2&3 33% 2-70 2-20 Colorado1 1% 130-3 100-3 Main Vein- 2 46% 170 80 - - - - - - - - - - - - Satellite Pits 17% mvw-100 syn-30 Alluvials/Eluvials 3% Eluvials Eluvials Y3
HMB East- 2&3 33% 2-20 2--10 - - - - Main Vein- 2 67% 80 40 - - - - - - - - - - - - - - - - - - - - Y4
HMB East- 2&3 24% 2--10 2--50 Colorado- 2&3 9% 2-310 2-280 Main Vein- 2 67% 40 -20 - - - - - - - - - - - - - - - - - - - - Y5
- - - - Colorado- 2&3 33% 2-280 2-250 Main Vein- 2 13% -20 -70 Main Vein- 3 54% 180 80 - - - - - - - - - - - - - - - - Y6
- - - - Colorado- 2&3 33% 2-250 2-240 - - - - Main Vein- 3 67% 80 50 - - - - - - - - - - - - - - - - Y7
- - - - Colorado- 2&3 33% 2-240 2-230 - - - - Main Vein- 3 67% 50 - - - - - - - - - - - - - - - - - Y8
- - - - Colorado- 2&3 33% 2-230 2-220 - - - - Main Vein- 3 67% - -80 - - - - - - - - - - - - - - - - Y9
- - - - Colorado- 2&3 33% 2-220 2-210 - - - - Main Vein- 3 12% -80 -110 Main Vein- 4 55% 170 60 - - - - - - - - - - - - Y10
HMB East- 2&3 11% 2--50 3-60 Colorado- 2&3 33% 2-210 2-200 - - - - - - - - Main Vein- 4 22% 60 - Main Vein- 5 34% 150 80 - - - - - - - - Y11
HMB East- 2&3 20% 3-60 3-0 Colorado- 2&3 33% 2-200 2-180 - - - - - - - - - - - - Main Vein- 5 47% 80 50 - - - - - - - - Y12
- - - - Colorado- 2&3 33% 2-180 2-160 - - - - - - - - - - - - Main Vein- 5 67% 50 10 - - - - - - - - Y13
- - - - Colorado- 2&3 66% 2-160 3-170 - - - - - - - - - - - - Main Vein- 5 34% 10 -10 - - - - - - - - Y14
- - - - Colorado- 2&3 33% 3-170 3-120 - - - - - - - - - - - - Main Vein- 5 67% -10 -150 - - - - - - - - Y15
- - - - Colorado- 2&3 15% 3-120 3-70 - - - - - - - - - - - - - - - - - - - - - - - - Y16
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Y17
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Y18
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Y19
56 LQS2008.014

1208 Masbate 2008 NI 43

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1208 Masbate 2008 NI 43

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To CGA Mining

NI43-101 Technical Report, October 2008

Report number: LQS2008.014

Publish Date: 5th December, 2008

Authors: Daniel Tuffin, BEng, BSc, Dip.PM, MAusIMM

Lower Quartile Solutions Pty Ltd

Anthony James Keers. Anthony.Keers@LQSgroup.com

19.2.2.13 Discount Rate ............................................................................................. 9

25.6 Capital Costs and Operating Costs .......................................................................... 42

Figure 9: Pit Ore Tonnages Sensitivity Graph ..................................................................... 22

Area Ore Grade Ounces

Mineral Resource model or financial situation resulting in an increased Mineral Reserve in

Figure 1: Masbate Gold Project Location Map

5 Reliance on Other Experts

6 Property Description and Location

7 Accessibility, Climate, Local Resources, Infrastructure and

14 Sampling Method and Approach

15 Sample Preparation, Analyses and Security

18 Mineral processing and Metallurgical Testing

19 Mineral Resource and Mineral Reserve

19.2 Mineral Reserve

19.2.1 Block Model Preparation

Table 1: Block Model Rock Codes for Whittle Optimisation

Material Rock code

The names of the models used in Whittle were:

• mv_20.mod for Main Vein

19.2.2 Whittle Optimisation Parameters

19.2.2.1 Slope Sets

19.2.2.2 Study Base Date

19.2.2.3 Initial Capital

19.2.2.4 Plant Capacity

19.2.2.5 Mining Limit

Table 2: Mining Limits for each Area

Area Mining Limit

19.2.2.6 Processing Recovery

Table 3: Processing Recoveries by Rock Code

Area Rock Code Processing

19.2.2.7 Grade Cut-Offs

19.2.2.8 Mining Dilution

19.2.2.9 Mining Recovery

19.2.2.10 Commodity Price

19.2.2.11 Selling Costs

19.2.2.12 Exchange Rate

19.2.2.13 Discount Rate

19.2.2.14 Mining Costs

Table 4: Mining Cost by Rock Code

Area Rock Mining

19.2.2.15 Processing Costs

19.2.3 Whittle Results

19.2.3.1 Main Vein

Table 5: Main Vein Whittle Results

Open pit Open pit Open pit Ore Grade Mine

1 $ 49,186,835 $ 49,186,835 $ 49,186,835 1,582,374 1,883,477 2.38 0.43

Main Vein- Whittle Results

Figure 2: Main Vein Whittle Results Graph

Table 6: Colorado Whittle Results

Open pit Open pit Open pit Ore Grade Mine

1 $ 18,288,638 $ 18,288,638 $ 18,288,638 665,792 690,919 1.91 0.17

Colorado- Whittle Results

Figure 3: Colorado Whittle Results Graph

19.2.3.3 Holy Moses Basalt

Table 7: Holy Moses Basalt Whittle Results