Report to:
MASUPARIA GOLD CORPORATION
Reconciliation Report for the
Greywacke North Gold Deposit 2013
Open Pit Bulk Sample, La Ronge
Mining District, Saskatchewan
885 Dunsmuir Street, Suite 350, Vancouver, BC. V6C 1N5
Phone: 604-644-3885 Fax: 604-688-7307
Prepared by: Frank Hrdy P.Geo.
Date: August 6, 2015
Contents
Summary ............................................................................................................................................. 2
Introduction ........................................................................................................................................ 3
Overview ............................................................................................................................................. 4
Estimated Resource of the Planned Bulk Sample ........................................................................... 4
Estimation Method and Quality Control......................................................................................... 6
Reported Production ...................................................................................................................... 7
Discussion ........................................................................................................................................... 8
“As-Built (Surveyed)” vs “Planned” Open Pits ................................................................................ 8
Reconciliation................................................................................................................................ 11
Conclusion......................................................................................................................................... 13
Appendix 1 ........................................................................................................................................ 14
Appendix 2 ........................................................................................................................................ 18
1
Summary
At present a possible 2,046 gold ounce discrepancy exists between the estimated and reported
results from the bulk sample open pit at the Greywacke North gold deposit taken in 2013.
Reconciliation of the information and data indicates that an additional 4,859 tonnes were blasted
from the Greywacke North open pit then what was reported. In addition, when an independent
survey of the “As-Built” open pit is overlain over the original geological model and resource
estimate there is a negative 70 gold ounce discrepancy from what was reported.
The reported grade of 6.87 g/t gold is higher than the 4.64 g/t gold predicted by the reconciled
model (using the independent survey of the “As-Built” open pit); however, the gold ounces
reconcile well whereas the tonnes (4,859 tonnes) do not. This indicates that all of the material
was not shipped to the mill and this (unshipped) material was most likely waste (possibly from the
ramp). An additional 5,390 tonnes grading 7.07 g/t gold (1,225 gold ounces) remains outside of
the surveyed pit and represents material that was left behind from what was originally planned to
be mined.
2
Introduction
At present a possible 2,046 gold ounce discrepancy exists between the estimated and reported
results from the bulk sample open pit at the Greywacke North gold deposit (see Appendix 1 and 2
for news releases). An independent survey was conducted by Meridian Surveys, out of Melfort,
Saskatchewan, on the open pit and remaining mineralized stockpile as the previous surveys were
not conducted by certified surveyors. When the two surveys of the open pit are compared a
significant discrepancy exists. This reconciliation document discusses and attempts to reconcile
the above.
Estimated – In Situ (see Appendix 1)
Category
Mineralized
Estimated
Tonnes (t)
11,000
Estimated
Grade g/t Au
12.4
Estimated
Au Ounces
4,385
Dilution
7,900
1.8
457
Total
18,900
8.0
4,842
Reported – 94.3% Reported Mill Recovery (see Appendix 2)
Category
Reported
Tonnes (t)
?
Reported
Grade g/t
Au ?
Reported Au
Ounces
?
Stockpiled
1,262
6.87?
262.86?
Milled & Poured
12,164
Mined
2,242.5
Mill Circuit Inventory
Sub Total Milled
290.9
12,164
6.87
2,533.4
Total
13,426
?
2,796.26?
Note: The remaining gold ounces in the reported stockpile is an
estimate based on the reported head grade of 6.87 g/t gold, reported
94.3% mill recovery and reported tonnage.
3
Overview
Estimated Resource of the Planned Bulk Sample
On May 13, 2013 Golden Band Resources Inc. and Masuparia Gold Corporation reported an
estimated 18,900 tonnes grading 8.0 g/t gold (4,842 ounces of gold in situ) to come from the bulk
sample open pit at the Greywacke North gold deposit (see Table 1, Figure 1 and Appendix 1). It
was reported that this estimate does not account for recovery in either the pit or the mill and that
a reconciliation of grade, tonnes and gold ounces would need to be completed once the bulk
sample is milled and the “As-Built” pit is surveyed and compared with the “Planned” pit.
Table 1: In Situ estimated tonnes, grade (g/t gold) and gold ounces for the Greywacke “Planned”
open pit bulk sample.
Mineralized
Estimated
Tonnes (t)
11,000
Estimated
Grade g/t Au
12.4
Dilution
7,900
1.8
457
Total
18,900
8.0
4,842
Category
Estimated
Au Ounces
4,385
Figure 1a: Plan View Image of the Greywacke “Planned” open Pit (Red = Mineralized, Yellow =
Dilution, Black Dots = Blast Drill Hole Collars (see Appendix 1 for Original Press Release).
Figure 1b: Plan View Image of the “Planned” Blast Outline (in blue) representing the Original hand
4
drawn-blast outline.
Figure 1c: Copy of the original hand drawn blast outline.
5
Estimation Method and Quality Control
Assaying of samples was conducted at Contractors assay lab located at the Jolu Mill facility. The
assay results are derived from the North Zone and include 1,790 samples of drill cuttings collected
from 467 blast holes that were spaced 2 m x 2 m apart and that had a continuous 2.5 m sample
spacing. All of the drill holes were vertical. A rigorous assay quality assurance/quality control
program consisting of 217 sample standards, 12 sample blanks, 89 duplicates analysis and 74
duplicate lab checks was conducted by routine insertion of these reference standards, sample
blanks and repeat assays into the sampling stream. A standard fire assay method of analysis was
performed on drill cuttings utilizing a 50 g assay charge. The results from the this QA/QC program
do not indicate any problems except in the case of Standard CDN-GS-5E (4.46 g/t Au lower limit, 5.2
g/t Au upper limit) where approximately 25 of 47 results assayed above the upper limit. However,
Standard CDN-GS-4D (3.56 g/t Au lower limit, 4.06 g/t Au upper limit) only had 1 of 78 samples
above the upper limit. All other QA/QC samples fell within acceptable range. It is speculated that
the anomalous data from Sample Standard CDN-GS-5E indicates a possible problem with the
Standard as this anomaly does not exist with the other Standards, in particular. Standard CDN-GS4D which overlaps with Standard CDN GS-5E (the Standard in question).
The tonnes and grade estimate for the “mineralized” and “diluted” components of the bulk sample
was constrained by a three-dimensional solid model (one for the mineralization and one for the
dilution) that were modeled to tightly constrain the indicated mineralization derived from assay
results and from the planned margins of the pit. Block size is 2.5 m x 2.5 m x 2.5 m and grade
estimation was carried out by the inverse distance squared method using 2.5 m down-hole
composite lengths. Top “cap” and lower “cut” grades were not utilized due to the close spacing of
the samples (2.5 m apart). A spherical search was conducted with a maximum search distance of 6
m and a minimum of 2 and maximum of 10 composite samples were required within a given search
radius.
Mr. Frank Hrdy P.Geo., serves as an independent Qualified Person (QP) as defined under NI 43-101
and has reviewed and approved the scientific and technical information contained in this news
release.
6
Reported Production
On October 30, 2013 (see Appendix 2) a total of 12,164 tonnes were reported to have been
processed and 1,262 tonnes remained at the mill. The “reconciled” head grade was reported to be
6.87 g/t gold versus the estimated in situ grade of 8 g/t gold (see Table 2 below). A reconciliation
of the shape, volume (tonnes) and location of the “Planned” pit versus the final surveyed pit (“AsBuilt” pit) was not discussed at this time.
Table 2: Mined, stockpiled and processed tonnes and grade (g/t gold)
Reported
Tonnes (t)
?
Reported
Grade g/t
Au ?
Reported Au
Ounces
?
Stockpiled
1,262
6.87?
262.86?
Milled & Poured
12,164
Category
Mined
2,242.5
Mill Circuit Inventory
290.9
Sub Total Milled
12,164
6.87
Total
13,426
?
2,533.4
2,796.26?
This summary report discusses the “Planned’ open pit versus the independently surveyed open pit
(As Built) and attempts to provide a reconciliation of the two based on available information.
7
Discussion
At present a 2,046 gold ounce discrepancy exists between the estimated and reported results
from the bulk sample open pit at the Greywacke North gold deposit. The factors to consider
include:
1.
2.
3.
4.
Accuracy of the original tonnage and grade estimation,
Difference between planned and actual location and size of the open pit,
Percent recovery from the milling operation,
Possible existence of waste and/or ore pads somewhere in the general area or unreported
use of pit material,
5. Accuracy of accounting of material transport,
6. Accuracy of accounting of milled material,
7. Possible mixing or blending of ore materials from other projects.
“As-Built (Surveyed)” vs “Planned” Open Pits
Figures 2a and 2b (below) are images of the “planned” open pit as it is described in Appendix 1
(May 13, 2013 press release) and represented here in light blue and red, and the “surveyed” open
pit represented here in yellow color. There is a 10 x 10m grid overlying Figure 2a for scale.
Figure 2a: Plan view of surveyed open pit (yellow color) and planned open pit (light blue
color). Red color = ore, light blue = low grade (see Appendix 1).
8
Figure 2b: Oblique view of surveyed open pit (yellow color) and planned open pit (light
blue color). Red color = ore, light blue = low grade (see Appendix 1). Note that the light
blue and red represent remaining ore that has been left behind by the “As-Built” pit.
Figures 2a and 2b show that there exists a significant difference between the “planned” open pit
(light blue and red) location and size and the “As-Built or surveyed” open pit (yellow) location and
size. The data indicate that a significant portion of the high grade ore (red) was not extracted and
that dilution was added when comparing what was estimated (Appendix 1) and what was realized
(As-Built – surveyed, open pit).
A pit shell was constructed from the above mentioned survey data and existing surveyed blast
hole collar information in Surpac geological modeling software (version 6.6) and was
superimposed on the same grade model that was used in the original “Planned” open pit
estimation (the May 13, 2013 news release – Appendix 1). The corresponding estimated tonnes,
grade and in-situ ounces were derived (A density of 2.6 g/cm3 was used to convert the volume
into a tonnage and this density was obtained from a NI 43-101 compliant report on this project
conducted by Wardrop Engineering).
Tables 3 shows the results of what the expected in-situ tonnes, grade and gold ounces are if the
“As-Built or surveyed” pit (as described above) was used for planning of the original work (3,044
in-situ gold ounces, 20,411 in-situ tonnes and 2,726 estimated in-situ gold ounces), which is a
difference of -70 gold ounces when compared to what was reported to have been produced
(2,796 gold ounces reported, 2,726 gold ounces estimated).
9
Table 3: In Situ estimated tonnes, grade and ounces expected from the “As-Built” open pit using
the same grade model as was used for the ‘Planned’ pit estimate.
Item
Tonnes
Grade (g/t Au)
Ounces (Au)
Est. Pit
20,411
Ore
6,707
13.32
2,872
Low Grade
4,361
1.23
172
Waste
9,343
0
0
Total
20,411
4.64
3,044
Attachment 1: Below is a Cut-Out from a 2013 Weekly Operations Report that Reports that
22,165 Tonnes had been blasted from the Greywacke Open pit which is more in line with what the
As-Built pit survey indicates.
10
Reconciliation
An in-depth review of the original “Planned” estimate as stated in Appendix 1 (press release dated
May 13, 2013) vs the recently independently surveyed pit indicates a significant discrepancy
between the two. However, some inconsistencies between estimation methods were observed so
these were then accounted for. The inconsistencies identified include:
1. The original estimate was reported as an “in-situ” resource and did not account for
estimated pit and mill recovery,
2. The original estimate used a density of 2.7 g/cm3 but the measured density is 2.6
g/cm3,
3. There may exist a topographic inconsistency between what was originally estimated
and what is indicated (i.e. the original estimate may have slightly overestimated the
elevation of the ore by using publically available topographic data and not surveyed
topographic data) from the surveyed pit and its topographic profile.
The following table lists the reconciled estimates with consideration to the above.
Item
Tonnes
In-situ
Grade InSitu
Ounces
Au
(g/t Au)
In-Situ
Estimated Pit
Recovery (%)
Mill
Recovery
(%)
tonnes
Ounces
Au
Amended Planned
Ore
10,291
12.383
4,097
95
94.3
9,219
3,670
Amended Planned
Waste
7,360
1.764
417
95
94.3
6,594
374
Total Planned
17,651
7.95
4,514
95
94.3
15,813
4,044
?
6.87
?
95
94.3
13,426
2,796
As-Built Est.
20,411
4.64
3,044
95
94.3
18,285
2,726
Est. Remaining Ore
that was not taken
by the “As-Built”
pit.
3,336
10.770
1,155
95
94.3
2,989
1,035
Est. Remaining
Waste
2,675
2.459
212
95
94.3
2,401
190
Total Remaining
Mineralization
6,011
7.07
1,367
95
94.3
5,390
1,225
Reported
11
Reconciliation
Note:
Tonnes
Ounces
Planned minus Reported
+2,387
-1,248
Planned minus Reported plus Remaining
+7,777
+23
Remaining
+5,390
+1,225
Extra material taken as indicated by surveyed pit.
+4,859
-70
An internal “Closure Report” by P. Evans states that an additional
2,500 to 3,000 tonnes were taken as waste during the development of
the ramp. This is not stated anywhere else but needs to be considered
for this reconciliation.
12
Conclusion
1. The independent and certified survey data indicate that an additional 4,859 tonnes were
blasted from the Greywacke North open pit then what was reported. When the surveyed
pit is overlain over the existing geological model and resource estimate (the ones that
were used for the original estimate stated in Appendix 1) there is a -70 gold ounce
discrepancy from what was reported. So the gold ounces this model would have predicted
correlate well with what was actually produced but the reported tonnage does not.
2. The reported grade of 6.87 g/t gold is higher than the 4.64 g/t gold predicted by the
reconciled model; however, the gold ounces reconcile well whereas the tonnes (4,859
tonnes) do not. This indicates that all of the material was not shipped to the mill and this
(unshipped) material was most likely waste (possibly from the ramp). An internal “Closure
Report” dated November, 2013 (Patty Ogilvie-Evans) corroborates this as it states that
2,500 – 3,000 tonnes were taken as waste during ramp development.
3. An additional 5,390 tonnes grading 7.07 g/t gold (1,225 gold ounces) remains outside of
the surveyed pit and represents material that was left behind.
4. The original plan was modified and as a result ore was left behind and dilution was added
(see Figures 2a and 2b).
5. Based on the data presented here the original estimate (Appendix 1) is relatively accurate:
a. Amended planned = 4,004 gold ounces
b. Reported (2,796 gold ounces) + Remaining (1,225 gold ounces) = 4,021 gold
ounces (within 99%).
13
Appendix 1
14
15
16
17
Appendix 2
18
19