TECHNICAL REPORT ON THE LELY GOLD PROJECT
SIPALIWINI District
SURINAME, South America
PREPARED FOR REUNION GOLD CORPORATION BY:
Dr. Dennis J. LaPoint, Licensed Geologist North Carolina, USA
APPALACHIAN RESOURCES LLC
P.O. Box 3810
CHAPEL HILL, NC 27515
1-919-969-9594
597-8834515 SURINAME
[email protected]
And
Adrian Fleming B.Sc.(Hons), M.Aus.I.M.M. M.A.I.G., RPGeo
ROCKWORKS LIMITED
20 HARBOUR HEIGHTS, WAVERLEY
DUNEDIN, 9013 NEW ZEALAND
Tel 64 21 467 002
[email protected]
March 26, 2008
APPALACHIAN RESOURCES LLC
TABLE OF CONTENTS
1.
EXECUTIVE SUMMARY................................................................................................................................3
2.
INTRODUCTION AND TERMS OF REFERENCE .....................................................................................4
3.
RELIANCE ON OTHER EXPERTS...............................................................................................................5
4.
PROPERTY LOCATION AND DESCRIPTION...........................................................................................5
5.
PHYSIOGRAPHY, ACCESSIBILITY, CLIMATE, LOCAL RESOURCES AND INFRASTRUCTURE
10
6.
GEOLOGICAL SETTING .............................................................................................................................16
7.
DEPOSIT TYPES ............................................................................................................................................20
8.
MINERALIZATION .......................................................................................................................................21
9.
EXPLORATION..............................................................................................................................................21
10.
DRILLING...................................................................................................................................................22
11.
SAMPLING METHOD AND APPROACH .............................................................................................22
12.
SAMPLE PREPARATION, ANALYSES AND SECURITY..................................................................23
13.
DATA VALIDATION AND VERIFICATION ........................................................................................24
14.
ADJACENT PROPERTIES.......................................................................................................................24
15.
MINERAL PROCESSING AND METALLURGICAL TESTING........................................................26
16.
MINERAL RESOURCE ESTIMATES ....................................................................................................26
17.
OTHER RELEVANT DATA AND INFORMATION .............................................................................26
18.
INTERPRETATION AND CONCLUSIONS...........................................................................................26
19.
RECOMMENDATIONS ............................................................................................................................26
20.
REFERENCES ............................................................................................................................................28
21.
APPENDIX ..................................................................................................................................................30
22.
DATE AND SIGNATURE PAGE .............................................................................................................49
23.
CERTIFICATES OF AUTHORS..............................................................................................................50
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LIST OF FIGURES
FIGURE 1 LOCATION OF THE LELY PROJECT, SURINAME.........................................................................5
FIGURE 2. PERMIT BOUNDARIES OF G.M.D. 299/07, G.M.D. 352/07 AND G.M.D. 353/07 ..........................6
FIGURE 3. PERMIT BOUNDARIES OF G.M.D. 299/07, G.M.D. 352/07 AND G.M.D. 353/07 IN LATITUDE
AND LONGITUDE CORDINATES, ZANDERJI DATUM. .............................................................................8
FIGURE 4. SMALL SCALE MINING OPERATIONS AT HAVELAARS CREEK.............................................10
FIGURE 5. AIRSTRIP AND TELEPHONE REPEATER TOWER ON LELY MOUNTAIN SOUTHWEST
PLATEAU .........................................................................................................................................................13
FIGURE 6. TYPICAL BOAT TRANSPORT ON RIVERS AND LAKE TO CONCESSION...............................13
FIGURE 7. WEATHERED PROFILE BEING MINED AT HAVELAARS CREEK. ...........................................16
FIGURE 8. SIMPLIFIED GEOLOGY OF THE GUIANA SHIELD (WATSON, 2008)........................................18
FIGURE 9 SIMPLIFIED GEOLOGY MAP OF SURINAME. ..............................................................................19
FIGURE 10. LELY PROJECT PERMITS SHOWN WITH CROSS HATCHED SHADING, AND ADJACENT
PERMITS HELD BY OTHER PARTIES. ........................................................................................................25
FIGURE 11 SAMPLES LM-DJL-01 TO 03. ...........................................................................................................45
FIGURE 12. SAMPLES LM-DJL-04 AND 05........................................................................................................46
FIGURE 13. SAMPLES LM-DJL-06 AND 07........................................................................................................46
LIST OF TABLES
TABLE 1.
TABLE 2
TABLE 3
RESULTS OF SAMPLING FROM SITE VISIT BY LAPOINT ON MARCH 13TH, 2008 ..............15
RECOMMENDED BUDGET FIRST SIX MONTH PROGRAM .......................................................27
SUPPORT COSTS FOR SIX MONTH PROGRAM............................................................................27
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1. EXECUTIVE SUMMARY
This technical report was prepared by Dennis LaPoint of Appalachian Resources LLC and co-authored by
Adrian Fleming of RockWorks Limited at the request of Reunion Gold Corporation (“Reunion”), a
Canadian corporation whose common shares are listed on the TSX Venture Exchange (“TSX-V”).
LaPoint is the Independent Qualified Person as specified by the TSX-V and assumes responsibility for the
content of this report, based on the available data provided by Reunion and public documents. The report
was written in compliance with disclosure and reporting requirements set forth in the Canadian Securities
Administrators’ National Instrument 43-101, Companion Policy 43-101CP, and Form 43-101F1. The
information contained in this technical report is current as of March 15th, 2008 unless otherwise noted.
Reunion has entered into an agreement with Laurentian Mountain Resources Inc. (“Laurentian”) under
which Laurentian assigned to Reunion its rights to acquire a 100% interest in a project located in the Lely
Mountain area, 150 km south of the capital city Paramaribo, in the Sipaliwini District, in south eastern
Suriname, South America (the “Lely Project”). The Lely Project consists of three rights of exploration for
gold, diamonds and other minerals (the “Lely Rights”) which aggregate 82,850 hectares. The agreement
between Reunion and Laurentian is subject to the acceptance of the TSX-V.
The objective of this technical report is to provide a summary of the scientific and technical information
available relating to the Lely Project area and indicate exploration methods to locate a potential gold
resource.
Gold has been mined in the Lely Mountain greenstone belt in eastern Suriname since the late nineteenth
century by small parties of artisanal miners. This small scale gold mining activity continues today.
In the early 1970s, the Lely Mountain plateau tops were explored for bauxite, but the bauxite companies
paid little attention to the potential for other metals. The area has remained unexplored for gold and base
metals by modern systematic exploration methods because of its remoteness, difficult access, and delays
in the assignment of the concession exploration rights by the Government of Suriname.
The Lely Project encompasses early Proterozoic greenstone terrain which in other parts of the Guyana
Shield hosts gold deposits with reserves and resources of millions of ounces. The area is strategically
located at the convergence of two structural trends within a package of tightly folded sediments and
volcanic rocks. Felsic and mafic intrusive rocks occur within this package. Shear hosted and intrusive
related gold deposits are the primary target, but base metal mineralization may be present.
The objective of the initial exploration program proposed herein is to identify hard rock gold resources
that might support an economic mining operation. The initial focus is to identify the sources of the gold
mineralization which has and is being mined by small scale artisanal, alluvial mining operations. Details
and proposed budget for a six-month work program are provided. Contingent upon the results of this
program, a second six month program of exploration is also recommended.
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2. INTRODUCTION AND TERMS OF REFERENCE
This report reviews the ownership of the area covered by the Lely Rights and Reunion’s rights to acquire
the Lely Rights, the geology and mineralization at the Lely Project, exploration work conducted to date,
and historic and present day small scale gold mining operations. This report identifies exploration targets
and recommends a program of additional exploration. There has been no drilling on the Lely Project.
There is only a limited amount of information available concerning previous work at the Lely Project.
This technical report is based on geological reports, a compilation of published and unpublished data,
maps, and other reports made by persons and entities cited under the References’ section. No new data
have been produced as a result of this compilation. Reunion has just initiated an exploration program and
only very limited new data is available for in this report.
The authors have discussed the Lely Project in detail with Sytze Miedema, a Senior Consulting Geologist
who visited the Lely Project in September 2007, has made recent trips as part of Reunion’s exploration
program, and who has been involved in exploration for gold in Suriname for more than 15 years. LaPoint
visited the project area with Sytze Miedema on March 13, 2008 via helicopter and collected samples and
visited sites of small scale mining activity. In addition, LaPoint has reviewed the Lely Project area while
consulting for another company, has 9 years of exploration and project management in Suriname,
including initiating and managing the exploration program for Alcoa that discovered the Nassau deposit
that is now in pre-feasibility by Newmont, and is and has conducted significant exploration programs on
many of the adjoining concessions mentioned in this report.
Sytze Miedema made a scouting and logistical inspection of the northwest portion of the Lely Project
from September 17 to September 22, 2007. The trip was made from Suriname’s capital Paramaribo to an
airstrip on Sara Creek in a Cessna Caravan carrying a four-wheel all terrain vehicle (“ATV”). Sara Creek
was crossed by dugout canoe to its eastern bank. Then the northwest permit GMD 352/07 was crossed
from north to south and the northwest portion of the north permit GMD 353/07 was reconnoitered by
ATV on roads and trails made by artisanal miners. He has made several other scouting, mapping and
planning trips since that date. His knowledge of Suriname, Dutch speaking and reading skills, and
research into historic records at the Suriname Geological Survey (GMD) form the foundation for geologic
information on the Lely Project and this report.
LIST OF ABREVIATIONS
Most of the information about the Lely Project and surrounding areas are given in metric units.
References to currency are in United States dollars. The following units of measurement and conversion
factors are provided for clarification:
1 troy ounce = 31.103 grams
1 ppm = 1 part per million
1 ppb = 1 part per billion
g/t Au = grams of gold per metric tonne
Au g/t = grams of gold per metric tonne
g Au/t = grams of gold per metric tonne
1 oz Au/ton = 34.286 g/t Au
100 hectares = 1 square kilometers
1 foot = 31.28 cm or 0.3128 meters
1 mile = 1.609 km
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1m3 = 1 cubic meter = 35.31 ft3
1 ton (Imperial) = 2240 lbs
1 hectare = 10,000m2 = 2.471 acres
1 cubic foot = 0.028317 cubic meters
Ma = million years ago
3. RELIANCE ON OTHER EXPERTS
Very limited data is available describing the previous exploration work on the Lely Project as only a
limited amount of gold exploration has been conducted on the project. The persons that undertook that
exploration work and who wrote those reports were experienced geologists who it is assumed carried out
their work using generally accepted industry practices at the time. Some but not all of those persons
would have met the current requirements of a ‘Qualified Person’ at the time the work was carried out. As
mentioned previously, this report draws extensively on the work of other persons, however, the
conclusions and recommendations of this Technical Report are those of the authors of this report.
4. PROPERTY LOCATION AND DESCRIPTION
LOCATION
The 82,850-hectare Lely Project is located on Lely Mountain and adjacent land in central-east Suriname,
South America (Figure 1). The Project is 160 to 200 kilometers south-southeast of the capital Paramaribo
and 12 to 18 kilometers west of the Lawa and Marowijne Rivers which form the border between
Suriname in the west and French Guiana in the east. The northeast draining Tapanahony River at the
southeast property border is a major left tributary of the Lawa River. Downstream from its confluence
with the Lawa River the two rivers form the Marowijne River.
Figure 1. Location of the Lely Project, Suriname
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For the exploration program, coordinates used are in UTM system, WGS 84, Zone 21, northern
Hemisphere (Figure 2). This coordinate system is easier to use in the field and grids can be tied into this
coordinate system.
Figure 2. Permit boundaries of G.M.D. 299/07, G.M.D. 352/07 and G.M.D. 353/07 on a Digital Terrain Model
(DEM) image that reflects topography of Lely Mountain. Coordinates are shown as UTM coordinates, WGS84,
Zone 21. This coordinate system is used in the field, and for any digital data acquired by Reunion.
.
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MINERAL RIGHTS AND AGREEMENTS
Grasshopper Aluminium Company N.V. (“Grassalco”), a state-owned Surinamese company established
in 1971, is the holder of the Lely Rights that consist of three mineral rights of exploration for gold,
diamonds and other minerals (Figure 3). The three rights were initially granted to Grassalco by the
Minister of Natural Resources of Suriname on August 12, 2005 under the number G.M.D. 485/05, 486/05
and 487/05 but were re-granted at the request of Grassalco in November 2007 to remedy an error in the
surface area of one of the Rights as originally granted, and these re-granted Rights are as follows
(attached in section 21):
(i)
Right of Exploration for Gold, Diamonds and other Minerals, G.M.D. no 299/07,
covering approximately 27,600 hectares, located in the District of Sipaliwini, issued on
November 6, 2007, valid until November 6th 2010;
(ii)
Right of Exploration for Gold, Diamonds and other Minerals, G.M.D. no 352/07,
covering approximately 15,250 hectares, located in the Districts of Sipaliwini and Brokopondo,
issued on November 6, 2007, valid until November 6th, 2010;
(iii)
Right of Exploration for Gold, Diamonds and other Minerals, G.M.D. no 353/07,
covering approximately 40,000 hectares located in the District of Sipaliwini, issued on November
6th, 2007, valid until November 6th, 2010.
The rights cover an aggregate of 82,850 hectares in central-eastern Suriname (Figure 3). The initial term
of each right of exploration is three years, expiring in November 2010. They are renewable under certain
conditions for two additional terms of two years each. The three rights surround and enclose a 13,650
hectare rectangular bauxite reserve area on the south end of Lely Mountain that belongs to Suriname
Aluminum Company, L.L.C. (“Suralco”), a subsidiary of Alcoa Inc. There is no requirement under
Suriname mining legislation to define property boundaries on the ground.
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Figure 3. Permit boundaries of G.M.D. 299/07, G.M.D. 352/07 and G.M.D. 353/07 in latitude and longitude
cordinates, Zanderji datum.
A right of exploration does not include any surface rights, which remain with the government of
Suriname. The holder of an exploration concession is entitled to:
•
•
•
•
•
•
Enter the exploration area for exploration activities.
To drill holes for sample collection, make excavations and carry out any subsurface work that is
judged necessary by Reunion.
Erect camps and temporary buildings necessary for personnel and equipment.
Build necessary infrastructure.
Use geologic samples collected in the exploration area for tests and analysis.
After approval by Minister, take samples abroad.
The right of exploration provides all of the permits required to carry out the proposed work program.
Permits for an airborne geophysical survey have been obtained by the contractor.
There are no environmental liabilities associated with a right of exploration that affects the rights of
Reunion to conduct exploration. Small scale mining is illegal and is an operation between local people
and Brazilians. To the authors knowledge, the government has not required any concession holder to take
environmental responsibility for any of the illegal mining activities either during exploration or mining.
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A right of exploitation is required for mineral extraction and processing. This is a later stage in the
process that is based on the results from the exploration conducted under the right of exploration.
Grassalco and Laurentian Mountains Resources Inc. (“Laurentian”), a company controlled by the
chairman of Reunion, entered into an option agreement dated March 26, 2007 (the “Grassalco Option”),
under which Grassalco granted the right to Laurentian to acquire a 100% interest in the Lely Rights.
Pursuant to the Grassalco Option, Laurentian can earn the 100% interest by spending US$8,000,000 on
exploration on the Lely Rights over a five year period, as well as making payments to Grassalco of an
aggregate of US$775,000 over the same period. The Grassalco Option provides for ongoing annual
payments of US$250,000 until the feasibility study stage and a onetime payment of US$300,000, upon
receipt by Laurentian of all permitting necessary to construct a mine. The Grassalco Option also provides
for a sliding scale net smelter return royalty (“NSR”) payable to Grassalco, ranging from 3% to 5%
(inclusive of any royalty payable to the government of Suriname), based on the price of gold. Laurentian
has a right of first refusal in respect of the NSR. The Grassalco Option as amended is assignable.
Subject to regulatory approval, Reunion has entered into an assignment agreement with Laurentian dated
October 15, 2007 (the “Assignment Agreement”) under which Reunion will acquire Laurentian’s rights
and obligations under the Grassalco Option. Consideration payable to Laurentian for the Assignment
Agreement is 2,000,000 common shares of Reunion, plus an additional two common shares of Reunion
for every ounce of gold reported in a National Instrument 43-101-compliant technical report.
The Grassalco Option is amended to reflect the issuance and registration of the new rights of exploration
(G.M.D. 299/07, 352/07 and 353/07). The Assignment Agreement is also amended to reflect the new
rights and to specify that the additional consideration to be paid to Laurentian of two common shares of
Reunion for each ounce of gold reported as measured and/or indicated resources in a technical report
prepared by an independent qualified person in compliance with National Instrument 43-101.
LOCATION OF MINERALIZED ZONES
Presently, small-scale mining of alluvial gold (placer mining) is taking place in the northwest foothills of
Lely Mountain, both within and to the northwest of the Lely Project, by artisanal miners, referred to as
“porkknockers” and Brazilian garimpeiros. There are no records as to how much gold the artisanal miners
are extracting or producing. Operations generally require diesel powered pumps to wash the material
with high pressure hoses and then suction pumps to lift the gravels to a sluice box. Typically a tracked 10
tonne to 20 tonne excavator is required to remove the overburden down to the pay zone. The main cost of
an operation is fuel and the economics of the operation and the breakeven mining cost is based on fuel
costs and consumption. One of the artisanal mining operations visited by Sytze Miedema in September
2007 and by LaPoint on March 13th, 2008 that is located at Havelaars Creek (Figure 4), ferries diesel fuel
to the site by helicopter in the dry season when boat transport is less feasible and transports the gold
production to town to avoid robbery. This implies good gold production to support an operation.
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Figure 4. Small scale mining operations at Havelaars Creek
In the early 1970’s, Suralco assessed the six 600 to 700 meter high plateaus that define Lely Mountain for
bauxite potential. The four southernmost plateaus were the subject of detailed exploration by auger
drilling. They constructed an access road from the lake and built an airstrip on the plateau, which allowed
access to the concessions. A bauxite resource was defined but the scope of work carried out by Suralco
and the nature and quantity of the bauxite resource is confidential and not available. The historic resource
is contained in the rectangular area immediately south of and contiguous with the southern boundary of
Lely Project permit GMD 353/07 (Figure 2).
The historic Suralco bauxite resource on Lely Mountain is the only identified body of mineralization in
the general area of the Lely Project. Reunion has no rights to the area encompassing this resource.
Due to no significant prior exploration on the concessions, there are no gold mineralized zones in
saprolite or fresh rock yet discovered. That is the objective of Reunion’s planned exploration program.
5. PHYSIOGRAPHY, ACCESSIBILITY, CLIMATE, LOCAL RESOURCES AND
INFRASTRUCTURE
PHYSIOGRAPHY
The Lely Project is composed of a series of 600m to 700m high plateau hills arranged in an arcuate shape
with its apex towards the southwest (Figure 2). The plateaus are remnants of a more extensive, deeply
weathered surface thought to have formed in late Cretaceous or early Tertiary time. The plateaus are
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capped by an iron laterite and bauxite duricrust that represents the top horizon of a deeply weathered and
leached profile where only iron and aluminum oxides are stable mineral assemblages. The plateaus are
dissected by incision of surrounding drainage systems, in the west by the north draining Sara Creek basin
and south draining Tosso Creek, in the north by the northeast draining Gran Creek basin, in its centraleastern portion by the northeast draining Djuka Creek basin and on its south flank by tributary creeks of
the Tapanhony River basin.
The vegetation in the Lely Project area consists of tropical rain forest in general terms. A high dryland
forest occurs on slopes of the project. Soils on the slopes are deeper than on the plateau, allowing a forest
with a very high stature, at times reaching a height of 60 meters, to be found. On the ridges the soil can be
shallower and this is also reflected in the species composition. The composition can be a mix of species
occurring more at the plateau and more in the lowlands. Where the soil is well-developed, this forest type
has an understory dominated by several palm species (Steeger and others, 2007).
On the plateaus of the project a high dryland forest occurs. The forest has a high stature with trees of 3040 m and emergent trees to 50 m in height. The soil is covered with a relatively thin layer of organic
material, and occasionally the laterite/bauxite cap is deep-seated, preventing the soil from drying out
quickly during dry seasons. Palm trees hardly occur in this type of forest (Steeger and others, 2007).
Secondary growth occurs near the major rivers where land has been cleared by the local inhabitants and in
areas of past small scale mining activity.
ACCESS
Depending on the area of work, the Lely Project can be accessed by the lake, river, and several airstrips
within or near the margins of the project. Within the project, access is by a network of ATV trails and a
road prepared for the bauxite exploration.
Access to the property by air is from Paramaribo to one of four airstrips, each of which is approximately
150 km from the main city Paramaribo. The most proximal airstrip is within the Suralco bauxite reserve
area on top of Lely Mountain's southwest plateau hill (Figure 5). This airstrip is in the center of the Lely
Project. Jeep trails now abandoned but constructed for bauxite exploration, can be repaired to provide
access into the northern and western portion of the property from this airstrip. Another airstrip is on Sara
Creek in the Sarakreek concession west of the property. From this airstrip, ATV or jeep trails lead into
the north-western portion of the concession, a distance of approximately 30 km. Another airfield is on
Stoelmanseiland, an island at the confluence of the Lawa and Tapanahony Rivers from which the Lely
Project can then be entered via a 22 km boat trip up the Tapanahony River. The last airstrip is on
Dritabiki Island set in the middle of the Tapanahony, 40 km upstream of the river mouth. From Dritabiki
Island access is by boat upstream or downstream to the southern or south-eastern property boundary.
The eastern side of the Lely Project can also be accessed by driving 250 kilometers east of Paramaribo on
a paved highway towards French Guiana and the town of Albina. From Albina a boat or canoe can be
taken upstream on the Marowijne River until the confluence with the Tapanahony River, then on the
Tapanahony River until the eastern property boundary. The western portion of the concession can be
also accessed by boat across the Lake van Blommesteinmeer to one of the landings established by small
scale mining communities. From a landing, fuel and supplies can be transported by ATV to the project
area (Figure 6).
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CLIMATE
The Lely Project is located just north of the equator and has an equatorial humid climate with dry and
rainy seasons. The short rainy season typically lasts from mid-November or December to mid-February,
the long rainy season typically lasts from May to August with the heaviest rainfall in May and June.
Field work can be carried out throughout the year, but activities involving heavy equipment (such as road
construction and drilling) should be minimized in the months with most rain.
Throughout the year the average daily temperature varies between 21º and 34º C. Suriname lies outside
the hurricane zone and the most extreme weather condition is the “sibibusi” (which means forest broom),
a heavy rain shower with strong gusts of wind. Mornings are often more clear before the clouds build up,
so aircraft flights are preferred in the morning. The airstrip on Lely Mountain is the one most likely to be
obscured by clouds and also early morning fog.
If equipment is being ferried up river to the eastern portion of the Lely Project area, heavy loads can only
be carried during, and for a month or so after, each rainy season when river levels are higher. Low river
levels reveal rapids which can be difficult and treacherous to navigate. Heavy equipment and fuel can be
transported over the lake by a pontoon boat at any time of the year to the western portion of the project.
LOCAL RESOURCES AND INFRASTRUCTURES
In 1974 Suralco built approximately 45 kilometers road from the Sara Creek to Lely Mountain for its
exploration activities including auger drilling. They used a Unimog, a very rugged multi-purpose
permanent four wheel drive medium sized truck produced by Mercedes-Benz with very high ground
clearance and a flexible frame. This unit was still being used a few years ago by the senior author.
Extensive portions of the road located on hogback ridges and watershed areas have been found on a
scouting trip by Miedema. This road can provide access overland for ATVs for future exploration after
reopening by using a bulldozer and excavator. It is believed that Suralco constructed some 80 kilometers
of bulldozer road during its bauxite exploration program. Most of this is currently impassable but could
be opened up with heavy equipment. The requirement to reclaim abandoned track and construct new
access roads will add cost to an exploration program, but can allow more a more cost-effective program
for exploration and drilling. Significant road work with heavy equipment would allow access by light
four wheel drive vehicles to portions of the concession, but such roads maybe impassible in the rainy
season and hazardous on steep slopes with inexperienced drivers.
There are no local villages on the concession except for several small “gold rush” villages of artisanal
miners that are accessible by ATV for reconnaissance exploration. Personnel experienced in the bush and
speaking Portuguese may also use these villages for food and lodging for short periods. These villages
may rapidly become ghost towns if the miners move elsewhere in their search for gold.
The Tapanahony River villages are inhabited by members of the Ndjuka tribe may offer lodging facilities
in villages on the river bank in the south-eastern portion of the Lely Project. These people from these
villages outside the concession are willing to work to assist exploration activity.
From Paramaribo there are qualified personnel for line cutting and auger sampling who have had
experience in exploration work. Technical people such as geologists, technicians and database
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management are in limited supply and exploration will need personnel from overseas or surrounding
countries such as Brazil, Peru and Chile.
The sufficiency of surface rights for mining operations, the availability and sources of power, water,
mining personnel, potential tailings storage areas, potential waste disposal areas, heap leach pad areas and
potential processing plant sites is not required for the rights of exploration and this stage of project.
These questions will be addressed by scoping studies, pre-feasibility and feasibility studies once a
potential economic resource is located. No information has been disclosed to the author to indicate that
there are any issues with surface use for mining, processing and disposal of waste.
Figure 5. Airstrip and telephone repeater tower on Lely Mountain southwest plateau
Figure 6. Typical boat transport on rivers and lake to concession.
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PRIOR OWNERSHIP
Details of prior ownership, other than for bauxite exploration, in the vicinity of the Lely Project are not
known since such records are not readily available in Suriname.
EXPLORATION AND DEVELOPMENT HISTORY
The Lely Project area, with the exception of sporadic short-lived exploration attempts, is largely
unexplored. As noted, a bauxite resource was identified on Central Lely Mountain, but no mining has
been undertaken. The only mining that has occurred in the property is that done by small scale artisanal
miners exploiting alluvial gold in creeks and small rivers.
Gold has been mined from alluvial deposits by artisanal miners north, south, east and west of Lely
Mountain during different periods over the last one hundred years. Production is unknown and not
documented. Recently most activities are concentrated in the headwaters of Gran Creek in the northwest
Lely Mountain foothills.
From 1954 to 1957, Union Carbide Ore Company carried out regional exploration in Suriname for
manganese. Small uneconomic resources (amount unknown) were indicated on Maripa Hill 56 km
northwest of Lely Mountain, at Apoema Soela 55 km northeast of Lely Mountain and on Poeketi Hill in
the southern foothills of Lely Mountain.
In the early 1970s, Suralco explored the 600m high duricrust covered Lely plateaus for bauxite. During
the campaign, indications of copper mineralization were noted in rock samples and they were submitted
to laboratory for analysis. In 1976, Suralco briefly prospected both east and west flanks of the western
Lely plateaus and upper course of Djuka Creek for copper, zinc and nickel by rock chip and soil
sampling. Selected rock chip samples with pyrite, chalcopyrite and arsenopyrite were reported with
values of 2,800 ppm Cu and 2,000 ppm Zn. Soil samples indicated copper values ranging from 60 to
1,200 ppm Cu with an average of 100 ppm Cu and zinc grades in the range of 70 to 2,400 ppm Zn with an
average of 195 ppm Zn (memos from files at the GMD).
The Geological and Mining Service of Suriname (GMD) followed up on these indications by exploring a
2km by 1km test area on the northwest flank the southwest Lely Mountain plateau for gold and base
metals. It is believed this work was undertaken in the late 1970’s. Isolated peak gold values of 85 to 153
ppb Au were indicated. Modest small copper anomalies of 80 to 200 ppm Cu and zinc anomalies with
values ranging from 200 to 300 ppm Zn were detected. No follow up work was undertaken to further
evaluate the area where these samples were collected (DeRooy, 1979).
LaPoint visited the project on March 13th accompanied by Sytze Miedema. A helicopter was used to
sample at three areas of active or recently active small scale mining. Seven samples were collected. They
were assayed by standard fire assay procedures at Filab Suriname in Paramaribo, Suriname. Results are
as follows:
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Table 1. Results of sampling from site visit by LaPoint on March 13th, 2008
Au VALUE
SAMPLE ID
LOCATION
UTM N
(ppm)
Agua Branca (Havelaars
LM-DJL-01
0.04
485988
Ck)
Agua Branca (Havelaars
LM-DJL-02
Ck)
0.04
485988
Agua Branca (Havelaars
LM-DJL-03
Ck)
0.05
485988
UTM E
SAMPLE TYPE
753115 1m channel
753115 1m channel
LM-DJL-04
LM-DJL-05
Tabocal
Tabocal
0.04
0.03
472702
472738
753115 1m channel
vertical channel
746228 0.3m
746083 Chip sample
LM-DJL-06
LM-DJL-07
Currutela do Meia
Currutela do Meia
0.04
0.04
480968
480968
735400 channel 0.5 m
735400 channel 0.5 m
No mineralized zones in saprolite or bedrock were encountered in the areas of mining alluvial or colluvial
material, but the site examination allowed a review of the north and western portions of the project and
assists in conclusions and recommendations for this report. The small scale mining is significant in size
and longevity and suggests a nearby source of gold in the drainage basin of the Havelaars Creek area.
Colluvial material as well as stream gravels are being mined (Figure 7). Several periods of working
material and extensive workings were noted at both other small scale mining sites visited. At Tabocal,
the workings are close to the contact between mafic volcanic rocks and granite. Abundant quartz gravels
and boulders are present. At Currutela do Meia, a more sedimentary package of sericitic schist occurs in
the workings (section 21 photos of samples). The degree of terrain relief in part reflects the lithologies
with the granites forming a more rolling terrain and the mafic rocks more rugged topography.
Understanding regolith development will be essential in an exploration program. Analytical sheets are
attached as in Item 21.
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Figure 7. Weathered profile being mined at Havelaars Creek.
The material looks colluvial and consists of massive clay with scattered fragments. Saprolite is exposed
at base of slope.
6. GEOLOGICAL SETTING
REGIONAL GEOLOGY
Suriname is set in the Guiana shield, a Paleoproterozoic massif of rocks in the northwest corner of South
America between the Orinoco and Amazon River basins, to the north and south respectively (Gibbs and
Barron, 1993). The majority of the Guiana shield is comprised of granitic rocks associated with the
Paleoproterozoic Transamazonian orogeny. Granite-greenstone-belts are present, predominantly in the
northern part of the shield between Venezuela and French Guiana, trend roughly NE-SW, and span a
geographic distance of about 200km (Figure 8).
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In Suriname and French Guiana, the lower greenstones, comprising the Marowijne and Maroni
supergroups, respectively that are overlain by several low-grade sedimentary formations, listed below in
probable stratigraphic order and classic interpretation of their tectonic setting (Gibbs and Barron, 1993):
Suriname
French Guiana
Mid-Proterozoic
Ston Formation (fluvial)
Lower Proterozoic
Molasse Rosebel Formation
Flysch Armina Formation
Volcanics Paramaka Formation
(not found)
Orapu Group
Bonidoro Group
Paramaca Group
The Armina Formation includes quartzite, rhyolitic flows and tuff, aplitic microgranite, polymict basal
conglomerate, schist, phyllite, greenish sandstone, and arkosic quartzite. Cross-bedding, ripple marks,
and rhythmic, graded beds (i.e. turbidites) are common features in the Armina Formation (Gibbs and
Barron, 1993). The contact between the Armina Formation and the underlying Paramaka Formation is
described by Gibbs and Barron (1993) as an unconformity.
Below the sedimentary formations lies the Paramaka Formation, which is comprised of predominantly
mafic volcanic rocks. In French Guiana a tholeiitic metabasalt and metagabbro comprise the lower parts
of the group which are overlain by felsic gneiss derived from calc-alkaline dacitic and rhyolitic tuff. The
uppermost units of the Paramaka Formation consists of mica-schist and aluminous gneiss, with dark,
interbedded quartzite, iron-formation, and manganese-rich sandstone (Gibbs and Barron, 1993).
The lithologic packages of rocks (Figure 9) represented by these formations represent a general arcrelated sequence of rocks found in greenstone belts and gold deposits throughout the world. Sarakreek
concessions are thought to occur mainly in the lower, more igneous-related, portion of this complex
package (Paramaka) while Rosebel and Nassau are in the upper, more sedimentary package (Armina).
In general, the stratigraphy of greenstone belts is highly convoluted due to complex stratigraphic facies
and multiple episodes of deformation including folding and faulting. The structural complexity of
greenstone belts can make stratigraphic interpretations, in a traditional sense, an improbable if not
impossible task. The structure and stratigraphy of greenstone belts will only be unraveled when
'stratigraphic' methods of mapping are abandoned. Mapping key marker units is helpful in understanding
the structural setting of the gold mineralization and developing mineralization models to better define
major new gold deposits.
Similar rocks on the Guiana shield host major ore bodies in Venezuela, Guyana (Omai with over 4.5
million ounces produced), and Suriname (Rosebel current with 10 million ounces reserves, resources and
production). Rocks of the Guiana Shield correlate to other rocks in various terranes in the circum-southAtlantic continents that were involved in the Transamazonian - Eburnean (in Africa) orogeny. Similar
styles of sedimentation, structural evolution, and igneous evolution are recorded in the rocks of West
Africa which host the long-lived and current producing mines with over 50 million ounces of gold. This
age of rocks is a major source of gold production and resources on both South America and Africa which
were linked together prior to the opening of the Atlantic Ocean.
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Figure 8. Simplified geology of the Guiana Shield (Watson, 2008)
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Figure 9 Simplified geology map of Suriname.
This figure is based on the 1977, 1:500,000 scale geological map prepared by the Geological and Mining Service of
Suriname (G.M.D).
REGIONAL STRUCTURE
The collision of two Archean cratons, the Guiana Craton in the south and the Galibi-Ile de Cayenne in the
north are thought to have intensely folded the Marowijne Group along west-northwest fold axes during
the Transamazonian orogeny of around 2 Ga ago. Doming of the basement in the east-central portion of
the orogenic belt caused the belt to split towards the east in French Guiana into a northern and southern
belt which converges into a single belt at the border between Suriname and French Guiana.
The knowledge of the geology and structure of the Project area is poorly understood with minimal
mapping due to the deep weathering profile and dense vegetation. Significant shear corridors are one
primary control on structurally controlled deposits and the Lely project occurs at the intersection of a
dominant north-south structural trend and a northeast structural fabric that is seen a a control in most
known gold deposits in Suriname (Figure 9). Lithologic contrast between host rocks, and fold structures
also play a role in gold mineralization in known deposits. The contrast between granites and mafic
igneous rocks is thought to be a favourable site for higher grade gold mineralization. Folded rocks can
create tensional structures that can form sites for mineralizing fluids to deposit quartz and gold.
PROPERTY GEOLOGY
The geology of Lely project is poorly mapped and understood. The only published geology is the
country-wide geologic map published in 1977 (Figure 9). The geology of Lely Mountain and adjacent
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areas is thought to be composed of northeast striking meta-basalt, gabbro-norite and amphibolite of the
Lower Proterozoic Marowijne Group. The Group was subjected to upper green schist - lower amphibolite
facies metamorphism. Regional studies of deformation and metamorphism suggest an age of around 2.1
to 1.9 Ma ago. The Marowijne Group assemblage is intruded by tonalite and granite bodies, ranging from
small intrusives to batholith scale. Regional, radiometric age dating has indicated an age of 1.8 Ma. Small
bodies of meta-gabbro or ultramafic rocks occur throughout the area. Regionally, their age is also thought
to be around 1.8 Ma (Priem et. al., 1966, 1967). The Lely Mountain southern foothills are reported to be
composed of east striking chlorite-sericite schist. Limited mapping and the aeromagnetic pattern suggests
the area west and north of the Lely Project to be underlain by a steep south-western plunging
anticlinorium followed southwards by a south-western plunging syncline. The syncline continues into
French Guiana (Miedema, unpublished notes 2007).
Significant shear zones are expected to occur and be associated with gold mineralization. The detailed
airborne geophysical survey will help to locate and define these structures.
7. DEPOSIT TYPES
All the gold extracted to date from the Lely Project area has come from artisanal mining of alluvial basal
gravel and colluvial material (placer deposits). This mining represents the first stage of an exploration
program as the source of the gold in the alluvial operations is from the surrounding hills. Transport into
the creeks is by down slope movement by mechanical methods such as debris flows, landslides, slope
wash and creek. Gold is also transported in solution in shallow groundwater, probably with organic acids,
and is precipitated as fine flour gold in the drainages. The gold-bearing material on the slopes is
considered colluvial and in the smaller drainages is often the source of the gold in the alluvial mining
conducted by Brazilian or local miners. In the smaller drainages, the gold distribution is often more
erratic with high grade pockets of course gold. In the larger drainages, the gold is finer and more
uniform. A few miners eventually work their way back to the bedrock source and initiate mining of the
weathered rock, saprolite. As seen at Rosebel, the soft nature of the saprolite, free gold that is partially
recovered by gravity, and high gold recoveries allow for a gold mine with lower capital and operating
costs and thus a requirement for lower average grades of ore.
Resources of gold mineralization identified in Suriname to date represent two different hard rock deposit
types. Both are well documented from greenstone belts in other parts of the world. The first type is shear
zone hosted and the second is intrusive hosted.
Shear zone hosted gold mineralization is structurally controlled and is characterized by significant
hydrothermal activity, alteration and mineralization. It is generally exposed at the transition from brittle
to ductile deformation. Gold is associated with tension and shear veins composed of quartz with variable
amounts of pyrite and possibly other sulfides. The host rock typically has an envelope of carbonate plus
pyrite alteration plus gold. Interesting structures and lithologic contrasts typically provide the best sites
for gold mineralization. Much of the mineralization at the Gross Rosebel mine in northern Suriname is of
this style.
Intrusive-hosted gold mineralization is also possible. The Omai gold deposit in Guyana, now mined out
is an excellent example of this deposit type. At Omai, a series of sheeted quartz veins with pyrite and
other minerals hosts mineralization within a dioritic intrusion.
Hard rock gold mineralization that might be found within the Lely Project area will likely be consistent in
style with one or other or both of the above mentioned deposit types. The package of mafic and
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ultramafic igneous rocks and past reports of copper mineralization suggest that base metals, including
nickel are possibly present. The airborne magnetic survey may also define pipe-like or dike-like bodies
that may represent kimberlites. Kimberlites can host diamonds and diamonds are reported from the some
of the gold fields of Suriname.
8. MINERALIZATION
No substantial hard rock hosted mineralization has been identified to date within the Lely Project area.
9. EXPLORATION
Many alluvial workings, both active and abandoned were inspected by senior geologist Sytze Miedema in
September 2007 as part of a preliminary scouting expedition to determine access and areas of active
mining. . Thirteen one-meter horizontal channel samples were taken in three locations from residual soil
and weathered bedrock below pay gravel. Samples were submitted to the Assay Office laboratory in
Paramaribo, Suriname for assay of gold by fire assay with atomic absorption finish. The Assay Office
laboratory’s lower detection limit is 0.005 g/t Au.
Four samples numbered 389817-389820 were taken in Havelaars Creek in the northwest of GMD 353/07
in two north south channels across east striking vertically dipping mottled brown gray saprolitic
weathered sericite schist with some quartz stringers. Assays in g/t Au are as below:
Sample no.
389817
89818
389819
89820
Au (g/t)
0.010
0.009
0.021
less than 0.005
Five further channel samples numbered 389821-389825 were taken in the south of GMD 352/07 from
brown gray, weathered, coarse, biotite granite below pay gravel in Upper Gran Creek. Assays in g/t Au
are:
Sample no.
389821
389822
389823
389824
389825
Au (g/t)
0.019
less than 0.005
less than 0.005
0.024
0.006
Four one-meter channel samples numbered 389826-389829 were taken in the west of G.M.D. 352/07 in a
045º northeast bearing channel of brown clayey residual soil being prepared for mining. Assays in g/t Au
are:
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Sample no.
389826
389827
389828
389829
Au (g/t)
0.033
0.045
0.010
0.036
The highest gold values including one sample grading 0.045 g/t Au came from the sampling. This is to be
expected as the mining sites in major drainages in alluvial or colluvial materials are downstream of the
primary bedrock sources of the gold. The alluvial mining represents a good first phase of exploration to
locate regions prospective in gold, but further exploration is typically required to locate the bedrock
sources. The lack of high gold values is to be expected.
Currently Reunion has started geologic mapping by Miedema in the western portion of the project. The
mapping includes small granitic intrusive rocks within a package of fine-grained mafic volcanic or
intrusive rocks. This geologic environment represents good structural sites for mineralization. An
airborne magnetic and radiometric survey is just starting, and shallow auger sampling is in progress and
techniques are being evaluated. The results are too limited to draw any conclusions for this report.
Miedema mapped one high level terrace of gravels. This terrace reflects the need for quality regolith
mapping to understand results from auger sampling.
Exploration undertaken by Reunion includes the compilation of a digital database of all existing
information and an initial site investigation by senior geologist Sytze Miedema to examine some of the
artisanal mining activities in the northwest part of the property. It is evident that considerable amounts of
alluvial gold mineralization has been and is being extracted from lag deposits or basal gravels and
accumulations in streams and small rivers. The source of this gold mineralization has not been found.
Reunion has started establishing roads and camps for exploration and Miedema has initiated geologic
mapping. Soil sampling methods are being reviewed and tested, but the exploration is in the initial
planning and training stages.
10. DRILLING
To date, no drilling for gold or base metals has been carried out on the property. It is understood that
Suralco undertook programs of drilling to evaluate bauxite occurrences in the general area, but these
resources are outside of the exploration concessions that Reunion has right to and were not assayed for
gold based on the LaPoint’s experience.
11. SAMPLING METHOD AND APPROACH
Information on the sampling method utilised by Suralco and the GMD are not known. Reunion is
evaluating sampling methods for the best techniques for exploration, but there are no conclusions yet on
sampling methods and approach.
LaPoint visited the Project on March 13th for the independent site visit. Seven samples of in situ material
from mottled zone, saprolite or fresh rock in the vicinity of areas of recently active or active small scale
mining were collected (Section 21). Also samples represent channel samples or chip rock samples.
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LaPoint personally collected the samples and they remained in his possession at all times until delivered
to the assay lab in Paramaribo.
In an early stage project in deeply weathered regions with dense vegetation, exposures of saprolite or
fresh rock are rare. Fresh rock that is exposed is often late dikes or intrusive bodies that are not
mineralized.
The standard approach that was used by both Miedema in the September, 2007 sampling and the site visit
by LaPoint is to examine areas of small scale mining activity. These areas represent the best opportunity
to locate in situ material consisting of mottled zone or saprolite. The weathered material may or may not
be altered or mineralized. Miedema’s reconnaissance trip located areas of small scale mining where
there are limited exposures of saprolite. He collected channel samples of any exposures with evidence of
quartz veining, alteration, or structural preparation. Typically the actual bedrock source of the gold is
further upstream, so such sampling is unlikely to encounter highly anomalous values of gold. The intent is
to determine trends and weak gold anomalies that may suggest targets further upstream. Auger sampling
of soils is then used to locate bedrock sources. That is one of the methods to be used in the exploration
program by Reunion.
On the site visit by LaPoint on March 13th, 2008, the intent was to revisit the areas of small scale mining
located by Miedema and confirm his sample results. This visit and sampling confirms the prior sampling
and sample methods. The use of the helicopter allowed rapid examination to determine that Miedema had
located the largest, most recent areas of small scale mining with saprolite exposures. These exposures
may be limited to washed areas or shallow trenches a few meters to a few tens of meters in width (Sample
photos section 21).
Channel samples were collected of available exposures by Miedema on his visit and by LaPoint on his
site visit. Spacing is based on the available exposures in the area of mining. Channel samples are
collected by first cleaning the surface to avoid contamination by alluvial operations. If channel sampling
is not feasible, chip samples of rock material are collected. Typically this represents 1 to 2 kg of material
for either channels or chip samples. No float material was sampled. Photos of samples and sample sites
collected during site visit are included in section 21. There is no splitting of samples and bags are
labelled and tied during sampling.
No obvious mineralized zones were detected either visually during field examination or in assay results
by either Miedema or LaPoint. There are no composite anomalous intervals, geologic controls, and
saprolite or rock lithologies to be summarized for anomalous gold values.
The sampling by Miedema and LaPoint accurately reflects the gold values of the material. For this type
of early stage exploration, the absolute gold value is not significant. More important is the presence or
absence of gold in the sample and area and the relative gold value when compared to other samples. The
same approach will be true for later auger sampling when done by Reunion.
12. SAMPLE PREPARATION, ANALYSES AND SECURITY
Information concerning the sample preparation, analysis or security procedures utilised by Suralco and
the GMD is not available. The Reunion program is just being established and procedures are being
developed by or under the supervision of Qualified Persons.
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The samples collected by Miedema in September, 2007 were delivered to the Assay Lab in Paramaribo.
This lab is used by all companies working in Suriname and their procedures and “round-robin” assays
have been checked by several international companies.
Samples collected by LaPoint on March 13th, 2008 were personally collected by LaPoint. There was no
splitting of the sample in the field. The samples were personally delivered to Filab Suriname, a branch
office of Filab Guyane SARL in Paramaribo, Suriname on March 14th, 2007 by LaPoint. Final results
were received March 17th. Filab is an international recognized assay lab used by many exploration
companies. The Suriname branch opened in the fall of 2007 and is in the process of being accredited.
No employee, officer, director or associate of Reunion had any contact with the samples or sample
preparation of samples collected during site visit by LaPoint. Filab also does assays for Reunion, but it is
an independent laboratory. Industry standard procedures of sample drying, crushing, splitting and
preparation of the pulp are employed by Filab and LaPoint has personally examined and toured the
facilities and observed operations. A standard 30 gram pulp was used for the fire assay. LaPoint has
received and reviewed the sample prep and assay procedures. Any issues can be personally discussed
with the laboratory manager or owner of the laboratory. There are no issues.
Standards and blanks are not used for this early stage program or for the sampling by LaPoint on the site
visit. As was noted previously, the presence or absence of anomalous gold and the relative gold value is
more critical rather that the absolute gold value. At the low levels of gold expected in this sampling,
blanks are often difficult to locate with representative material with no gold and such material was not
available that had been confirmed by repeated assays. The internal standards and blanks of the lab were
reviewed as part of verification of sample data. No additional check assays were requested other than
what is reported by the lab.
LaPoint has taken reasonable precautions for sample validity and integrity. He is confident that sample
security, preparation, and assay procedures are adequate for this early stage exploration program. He has
personally used the lab for other clients and is familiar with procedures and personnel.
13. DATA VALIDATION AND VERIFICATION
Any data cited in this report from previous work by other parties has been quoted direct from available
reports of historic data. It is not possible to validate this historic data. The Lely Project is an early stage
exploration project with very limited previous exploration activity having been carried out to evaluate the
gold and base metal potential of the area.
There is limited new data collected by Reunion to verify. Reunion will need to develop databases and
sample verification procedures, but this report predates significant exploration except for the sampling by
Miedema. LaPoint has worked with Miedema on several projects and is aware of his detailed attention to
data quality and verification. LaPoint has personally examined the original assay sheets, spreadsheets of
sample descriptions and locations and plotted data in GIS software to insure accurate sample locations.
There are no validation or verification issues noted with the data collected by Miedema on the Lely
Project.
14. ADJACENT PROPERTIES
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The three permits constituting the Lely Project and all current adjacent permits are shown in Figure 10.
Permit locations and permit numbers were obtained from the GMD in Paramaribo. All of the area
surrounding the Lely Project is held by other parties. Current active exploration is being conducted by
third parties on most of these permits.
In September 1982, Falconbridge Nickel Mines Limited prospected the lower course of Djuka Creek east
of Lely Mountain as far as the Tapanahony-Lawa River confluence for gold, silver and base metals by
stream sediment and soil sampling. This work was conducted within what is now G.M.D. 475/98. High
gold values were reported in several streams draining into Djuka Creek and into the Tapanahony and
Marowijne Rivers (Cloutier, 1983). In 1998, Golden Star Resources Ltd. (“Golden Star”) followed up on
Falconbridge’s anomalies by BLEG stream sediment sampling. The high gold values reported by
Falconbridge could not be repeated. This area is within concession G.M.D.475/98 and is currently held
by other parties (Sytze Miedema, personal communication).
Figure 10. Lely Project permits shown with cross hatched shading, and adjacent permits held by other parties.
From 1995 to 1997, Golden Star carried out exploration for gold in a concession around Sara Creek at 20
to 25 km west of Lely Mountain within what is now G.M.D. 122/05. Stream sediment sampling was
followed by one-meter auger soil-saprolite sampling. Hand drilled auger holes to up to 15 meters depth
were sunk in anomalous ground. Four high-grade anomalies were indicated. IAMGOLD has carried out
exploration in the Sara Creek area within permit GMD 122/05 on deep auger gold anomalies discovered
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by Golden Star in the mid-1990s. Trenching by IAMGOLD confirmed the results of Golden Star’s deep
auger sampling. IAMGOLD is currently starting a second phase of diamond core drilling on the
anomalies (Sytze Miedema, personal communication).
Hemisphere Gold published news releases in 2007 on their exploration for gold in an area northwest of
Lely Mountain on permits GMD 312/00 and 313/00 controlled by Orion Resources NV (Sytze Miedema,
personal communication).
Dr. LaPoint has conducted exploration for both of these companies and can not disclose results of the
exploration for confidentiality reasons. Any positive results on surrounding concessions do not imply
mineralization on the Lely Project concessions.
15. MINERAL PROCESSING AND METALLURGICAL TESTING
No sample has been taken for mineral processing or metallurgical testing.
16. MINERAL RESOURCE ESTIMATES
There is no mineral resource currently existing on the property.
17. OTHER RELEVANT DATA AND INFORMATION
There is no other relevant information that is known to the authors that would make this report more
understandable.
18. INTERPRETATION AND CONCLUSIONS
The Lely Project is an 82,850 hectare area of greenstone terrain in Suriname from which small scale gold
miners have been recovering alluvial gold for more than a century, in spite of the rugged terrain and
accessibility. Despite the geologic similarity of this area to other greenstone belts in Guyana, Suriname
and French Guyana, where substantial gold deposits have been found and mined, this particular area has
seen minimal systematic modern exploration for hard rock gold deposits. The long history of artisanal
mining, the very limited work in the 1970’s by Suralco and the GMD, and the on-going exploration on
surrounding concessions indicates that this area has potential and deserves to be the subject of a
comprehensive, multi disciplinary, exploration program for gold. A potential for base metals should be
included in any exploration program.
19. RECOMMENDATIONS
Approximate costs of the recommended work programs are summarized in Table 2. These
recommendations cover the first phase of exploration work only; further work beyond these
recommendations will be warranted based on results.
The program of exploration recommended for the first six month at the Lely Project will consist of the
following activities:
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• logistics including support services, local labor, temporary camps, meals, lodging and transport to
be supplied by Paramaribo based Nana Resources
• Heavy equipment contracting to open up existing and new roads to supply field operations.
• airborne magnetic and radiometric survey on 250m line spacing
• Geologic mapping of creeks and saprolite exposures within areas of small scale mining activities.
• interpretation of high resolution satellite imagery, identification of all artisanal gold mining
operations, inspection, mapping and sampling of such workings
• Mapping of regolith to access soil sampling results and methods in particular recognizing
transported versus in situ soil development in this deeply weathered region with steep topography
from the Lely Plateau.
• Pilot studies on sample method, sample depth, spacing, and orientation to be applied to ridge and
spur geochemical sampling and grid sampling in areas of small scale mining.
• Trenching in areas of positive results.
Table 2 Recommended budget first six month program
General:
Includes charters, capital equipment, labor, meals & lodging, fuel communications,
freight, insurance, transport & vehicles
Geology:
Includes salaries, geological supplies, computers & software, maps, imagery, travel
Geophysics: airborne magnetic and radiometric survey
Geochemistry (assays)
Bulldozer and excavator, road building, trenching
Support and logistical services supplied by Nana, a local independent contractor
Sub Total
10% Contingency
Total
$965,000
$395,000
$490,000
$374,000
$243,000
$60,000
$2,527,000
$253,000
$2,780,000
A breakdown of support costs is as follows (Table 3).
Table 3 Support costs for six month program
Charters
Capital Equipment
Labor (line cutting, auger crews)
Meals and Lodging
Fuel
Communication
Insurance
Transportation and Vehicles
TOTAL
$127,000
$198,000
$238,000
$123,000
$186,000
$25,000
$14,000
$ 54,000
$965,000
The program for the second six months is contingent upon results from the first six months exploration. It
is proposed that 4,200 meters of core drilling be undertaken to test identified targets. Costs for this
second program would be approximately $4,000,000.
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20. REFERENCES
Boeckel, J.J.G.M. 1968. Gravitational and geomagnetic investigations in Surinam and their structural
implications. Thesis, Amsterdam. Also in Contributions to the geology of Suriname 17.
Bosma, W. 1971. Geological and geophysical maps of Suriname.
In Contributions to the geology of Suriname 2, pp.137-142.
Bosma, W., Kroonenberg, S.B., Van Lissa, R.V., Maas, K., De Roever, E.W.F., 1984.
An explanation to the geology of Suriname. In G.M.D. publication Contributions to the geology
of Suriname 8.
Cloutier, J.P., 1983, Suriname Permit, D-125, Final Report, Internal Memo, Falconbridge Nickel Mines
Ltd.
Fraser, I. 1972. Airborne radiometric survey Suriname for Geologisch Mijnbouwkundige Dienst.
Geoterrex Ltd., Ottawa. G.M.D. internal report.
Gibbs, A.K., 1980, Geology of the Barama-Mazaruni Supergroup of Guyana.
Univ., Cambridge, MA, 385 p.
Gibbs, A.K. & C. N. Barron, 1993, The Geology of the Guiana Shield,
Collins, First Edition, 246 p.
Ph. D. Thesis, Harvard
Oxford University Press, NY,
Holtrop, J.F., 1962. De mangaanafzettingen van het Guyana schild. Geologisch Mijnbouwkundige Dienst
van Suriname – G.M.D. – 13.
International Aero Service Corporation, 1962, 1963, 1963.
Combined in-phase EM and magnetometer survey for the Geological and Mining Service,
Government of Surinam, Parts 1, 2 and 3. Philadelphia, Pa., U.S.A. (A.R. Rattew). G.M.D.
internal report.
Janssen, J.J., 1976. Copper Indication – Lely Mountains.
Suralco internal report in GMD library.
O’Herne, L. 1956-1958. Sheet Lelygebergte – E8(40). Preliminary geological sketch map.
In G.M.D. Yearbook 1956-58.
O’Herne, L. 1966. Photogeological map of Suriname, 1:500,000.
Priem, H.N.A., et. al, 1966, Isotopic Age Determinations on Suriname Rocks. GMD Mededeling 14.
Priem, H.N.A., et. al, 1967, Isotopic Age Determinations on Suriname Rocks, 2. GMD Mededeling 16.
Rooy, L. de, 1979. Geochemical exploration in the Lely Mountain areas Eastern Suriname (sheet 49a).
G.M.D. internal report.
Lely Project
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Steege, H., et. al., 2007, Plant diversity of the bauxite plateaus of North East Suriname, in Alonso, L.E.
and Mol, J.M. (ed.), A Rapid Biological assessment of the Lely and Nassau Plateaus, Suriname,
RAP Bulletin of Biologic Assessment 43, Conservation International.
Vletter, D. R. De. 1984. Synthesis of the Precambrian of Suriname and review of some outstanding
problems. In G.M.D. publication Contributions to the geology of Suriname 27.
Vletter, D. R. De. 1984. Economic geology and mineral potential of Suriname. In Contributions to the
geology of Suriname 27.
Watson, T., 2008. Volcanism and Sedimentation: Stratigraphic Framework of a
Synkinematic Paleoproterozoic Basin: Rosebel Gold Mine, Northeastern Suriname, unpublished
M.S. Thesis, University of North Carolina, Chapel Hill.
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21. APPENDIX
CONCESSION DOCUMENTS
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INDEPENDENT SITE VISIT SAMPLE RESULTS AND DESCRIPTIONS
SAMPLE
ID
LM-DJL01
LM-DJL02
LM-DJL03
LM-DJL04
LM-DJL05
LM-DJL06
LM-DJL07
LOCATION
Agua Branca
(Havelaars Ck)
Agua Branca
(Havelaars Ck)
Agua Branca
(Havelaars Ck)
Au
(ppm)
UTM N
UTM E
SAMPLE
TYPE
DESCRIPTION
mottled zone, kaolinite and
FeOx
0.04
485988
753115
1m channel
0.04
485988
753115
1m channel
0.05
485988
753115
Tabocal
0.04
472702
746228
1m channel
vertical
channel
0.3m
Tabocal
Currutela do
Meia
Currutela do
Meia
0.03
472738
746083
0.04
480968
735400
0.04
480968
735400
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chip sample
channel 0.5
m
channel 0.5
m
as above with qtz stringers
as above near vertical
structure 125
dense fine-gr mafic rock,
small bk xls
as above
qtz-rich sericite schist qtz
stringers, mottled zone
as above
LAB
Filab
Suriname
Filab
Suriname
Filab
Suriname
Filab
Suriname
Filab
Suriname
Filab
Suriname
Filab
Suriname
CERTIFICATE
LM-D52
LM-D52
LM-D52
LM-D52
LM-D52
LM-D52
LM-D52
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Sample photos from site visit March 13th, 2008
Figure 11 Samples LM-DJL-01 to 03.
Channel samples from small scale mining at Havelaars Creek. Samples in mottled zone and have sheared
fabric and small quartz veins. Each sample one meter across strike.
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Figure 12. Samples LM-DJL-04 and 05.
Chip samples of mafic igneous rock from road cut at area of small scale mining at Tabocal.
Figure 13. Samples LM-DJL-06 and 07
Channel samples of foliated sericitic schist from drain channel at Currutela do Meia.
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22. DATE AND SIGNATURE PAGE
Effective Date of report:
March 15, 2008
Completion Date of report:
March 26, 2008
“DENNIS J. LaPOINT”__________________________________________________March 26, 2008
Dennis J. LaPoint
Date Signed
“ADRIAN FLEMING”
ADRIAN FLEMING, P. Geo.
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March 26, 2008
Date Signed
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23. CERTIFICATES OF AUTHORS
Dennis J. LaPoint, Ph.D.
Licensed Geologist, North Carolina, USA
Licensed Geologist, South Carolina, USA
APPALACHIAN RESOURCES LLC
P.O. Box 3810
Chapel Hill, NC 27515
1-919-969-9594
597-8834515
[email protected]
I, Dennis J. LaPoint, PhD, Registered geologist in North Carolina, USA do hereby certify that:
1.
I am President of Appalachian Resources LLC, a North Carolina Corporation with an office at 9601 Gates
Lane, Chapel Hill, NC 27516 and provide geological consulting services. I am an Adjunct Faculty
Member in the Department of Geological Sciences at the University of North Carolina in Chapel Hill.
2.
I graduated with a PhD in Geology from the University of Colorado, Boulder, CO in 1977; an M.S. degree
in Geology from the University of Montana, Missoula, MT in 1971; and a B.A. in Geology from the
University of Iowa, Iowa City, IA in 1968.
3.
I am a Licensed Geologist in North Carolina and also was appointed and serve on the North Carolina Board
of Licensing Geologists by the Governor of North Carolina. I am also a Licensed Geologist in South
Carolina. I am a member of various professional organizations including Society of Economic Geologists,
Geological Society of America, Society of Exploration Geochemists, Carolina Geological Society (Past
President), and Society of Mining Engineers (Past chairman of Carolina Section). I have published and
presented many professional papers at Professional meetings.
4.
I have been employed as a geologist for over 35 years and have managed Exploration Programs in
Suriname since 2000. This includes initiating and managing the program by Alcoa that discovered the
Nassau deposit, now being evaluated by Newmont, Exploration Manager for Suriname for Cambior
(Iamgold), and VP Exploration and Director for Hemisphere Gold. I reviewed the Lely Mountain area for
another client in 2000-2001.
5.
I have read the definition of “qualified person” as set out in National Instrument 43-101 (NI 43-101) and
certify that by reason of my education, affiliation with a professional association (as defined by NI 43-101)
and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of
NI 43-101.
6.
I am responsible for the technical report titled”Technical Report on the Lely Gold Project.” dated March
26, 2008 (the “Technical Report”) for Reunion Gold Corporation. I visited the property on March 13th,
2008.
7.
I am not aware of any material fact or material change with respect to subject matter of the Technical
Report that is not reflected in the Technical Report, the omission to disclose which makes the technical
report misleading.
8.
I am independent of Reunion Gold Corporation.
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9.
I have read NI 43-101 and Form 43-101F and the Technical Report has been prepared with compliance
with that instrument and form.
10. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and
any publication by them for regulatory purposes, including electronic publication in the public company
files on their websites accessible by the public, of the Technical Report.
Dated this 26th day of March, 2008
(Signed) “Dennis J. LaPoint”
Dennis J. LaPoint
Lely Project
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APPALACHIAN RESOURCES LLC
Adrian Fleming B.Sc. (Hons), M.A.I.G., RPGeo, M.Aus.I.M.M,
ROCKWORKS LIMITED
20 Harbour Heights, Waverley, Dunedin 9013 New Zealand
Tel: +64 3 454 3684
E-mail: [email protected]
CERTIFICATE OF AUTHOR
I, Adrian Wallace Fleming, B.Sc. (Hons), M.A.I.G., MRPGeo, M.Aus.I.M.M, do hereby certify that:
1.
I am the President of ROCKWORKS LIMITED, a corporation having an office at 20 Harbour
Heights, Waverley, Dunedin 9013, New Zealand, and providing geological consultant services.
2.
I graduated with a degree in geology from the University of Newcastle, NSW, Australia in 1973.
3.
I am a member of the Australian Institute of Geoscientists and have accreditation from that body
as a Registered Professional Geologist (RPGeo). I am a member of the Australasian Institute of
Mining and Metallurgy and a member of the Society of Economic Geologists.
4.
I have worked as a geologist for 35 years since my graduation from University.
5.
I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 43101”) and certify that by reason of my education, affiliation with a professional association (as
defined by NI 43-101) and past relevant work experience, I fulfill the requirements to be a
“qualified person” for the purposes of NI 43-101.
6.
I am co-author of this report entitled “Technical Report on the Lely Gold Project, Sipaliwini
District, Suriname, South America” dated March 26, 2008 (the “Technical Report”) for Reunion
Gold Corporation (“Reunion Gold”).
7.
I have not had prior involvement with the property that is the subject of the Technical Report. I
have not personally visited the property. I have recently provided technical direction to Reunion
Gold for the exploration program at the property. I have been involved with several exploration
projects in Suriname over the past 17 years for Golden Star and as manager of the Antino project
of Reunion Gold.
8.
To the best of my knowledge, information and belief, this technical report contains all the
scientific and technical information that is required to be disclosed to make this technical report
not misleading.
9.
I am not independent of Reunion Gold in respect of the tests in section 1.4 of NI 43-101 as I
perform services for Reunion Gold under a Consulting Agreement.
10.
I have read National Instrument 43-101 and Form 43-101F, and the Technical Report has been
prepared in compliance with that instrument and form.
11.
I consent to the filing of the Technical Report with any stock exchange and other regulatory
authority and any publication by them for regulatory purposes, including electronic publication in
the public company files on their websites accessible by the public, of the Technical Report.
Dated this March 26, 2008.
“Adrian Wallace Fleming”
Adrian Wallace Fleming, RPGeo
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