Abcourt-Barvue Property — 2014 Resources Evaluation Report

This report details proposed processing methods and past operational context for the Abcourt-Barvue property, based on historical technical studies.

Report context

This Resources Evaluation Report for the Abcourt-Barvue property, located in Barraute Township, Quebec, Canada, is dated 2014. The report acknowledges that a new Feasibility Study is required for sections concerning recovery methods, project infrastructures, market studies, environmental studies, capital and operating costs, and economic analysis. Information on processing presented in the report is derived from Genivar's 2007 technical report and is provided for preliminary reference only. The property has a recorded production history of 5,002,190 tonnes grading 38.74 g/t Ag and 2.98% Zn from open pit mining (1952-1957), and 632,319 tonnes grading 131.65 g/t Ag and 5.04% Zn from underground mining (1986-1990).

Processing route

2007 Genivar proposed design

In 2007, Genivar proposed a mill processing rate of 1,800 tonnes per day of ore. The proposed treatment method involved a two-step process combining cyanidation and flotation. The ore would first pass through a cyanidation circuit to recover most of the silver and a small amount of gold, producing Ag-Au ingots. Following cyanidation, zinc flotation would be performed in a conventional rougher-scavenger-cleaner circuit to produce Zn-Ag concentrates. Residual materials would then be directed to a pyrite flotation circuit to reduce the bulk of residues with acid-generating potential in the tailings pond.

2008 optimization testwork

After Genivar's publication, several optimization tests and ore treatment scenarios were carried out. One scenario, identified as scenario B revision 2 and prepared in 2008, proposed recovering 80% of silver and 96% of zinc through a straight flotation process. This alternative process would produce a pyrite concentrate. The scenario indicated that the addition of a cyanidation circuit could recover 15% of the gold and 9% of the silver from the pyrite concentrate.

Existing site infrastructure

The report states that existing installations on site would be used if needed, including service building, warehouse, power line, fuel storage and refuelling station, roads, parking area, telephone line, artesian well, sewage treatment facilities, ditches and ponds. The service building would comprise engineering and mine department office, mine dry, mine warehouse, and a mechanical workshop for light vehicles and equipment of limited size, requiring only minor improvements and reshaping. The process plant would be erected on the foundations of the previous mill, and the repair shop for mining equipment would be constructed on an existing concrete slab near the service building.

Key reported parameters

Technical qualifications

The report states that a new Feasibility Study is required for sections on recovery methods, project infrastructures, market studies and contracts, environmental studies and permitting, capital and operating costs, and economic analysis. The information on processing was mainly extracted from Genivar’s 2007 technical report and is delivered only to give the reader a first sight of the proposed methods. The report indicates that several optimization tests and ore treatment scenarios were carried out after Genivar's publication, but does not provide validation or detailed results. The design parameters presented are based on historical studies that require updating through a new Feasibility Study.

Source: Abcourt-Barvue Property , 2014 Resources Evaluation Report, Sections 17, 18, 24, 25