Technical Reports

Qualified Person Status

MineTech staff are considered Qualified Persons for base metals, precious metals, industrial minerals, and coal for the purposes of submitting technical reports to the TSX, TSX-V and other stock exchanges.

Property Reports

Property reports, written to meet NI 43-101 Form 1, provide a summary of a property suitable for filing with stock markets and distribution to prospective investors. These reports cover aspects of the property such as its geology, history, and ownership status.

Basic technical reports generally cost between $US20,000 and $US30,000. Independent technical reports are required for a number of transactions on stock markets such as the TSX and TSX-V.

In 2013, MineTech was commissioned to write a Geological Report on a graphite property in Sri Lanka. The report was used as part of a property evaluation by the client.

Resource Estimates

43-101 compliant resource estimates include all the data in a property report, along with an independent resource estimate of the property. Extra information includes the grade and tonnage of the deposit, as well as a detailed description of the methodology used to arrive at the estimate.

Basic technical reports generally cost between $US30,000 and $US50,000, depending on past work and the quality of the digital data set. Independent resource estimates reports are required at various points in a mine's life for companies listed TSX and TSX-V.

MineTech has prepared many 43-101 compliant resource estimates, for internal and public use, and for a wide variety of deposit types and minerals. Recent deposit types include underground and open pit gold deposits in the Canadian shield and an industrial mineral deposit in eastern Canada

Feasibility Studies

Feasibility Studies are used in the planning stages of a mine, and provide advice on whether and how to proceed with the development of a mineral property. The cost of a Feasibility Study depends on the size of the project and the level of accuracy required.

There are three basic levels of Feasibility Studies:

1. Scoping Studies, also known as Order of Magnitude Studies or Preliminary Economic Assessments ("PEA's"), offer initial guidance on whether to proceed with the development of a property. Estimates are made based preliminary mine designs and costs. Scoping studies generally cost between $US50,000 and $US100,000.
2. Preliminary Feasibility Studies are more detailed, basing their estimates on such things as a conceptual mine design for the deposit and aggregate material costs. Preliminary feasibility studies generally cost between $US100,000 and $US500,000, depending on the scope and complexity of the project.
3. Full Feasibility Studies are detailed studies, incorporating a detailed mine design plan and budget. They are used for debt financing, and are often the final stage of engineering before a property is brought into production. Full feasibility studies generally cost 1-2% of project capital costs.

Between late 2011 and early 2012, MineTech prepared feasibility studies on two past-producing lead-zinc properties. Work was completed in concert with the client's in-house technical staff and MineTech's sub-contractors. Where appropriate, MineTech reviewed and signed off on work the client had already completed.

Valuation Reports

Valuation reports assign a value to mineral properties with and without established mineral reserves using methods set out in the CIMVal standard, such as comparable transactions or discounted cash flow.

Securities on the TSX that include Valuation Reports for their properties during some transactions can be classed as Value Securities, giving them shorter escrow periods. Transactions where Valuation Reports are applicable include acquisitions at non-arms-length, changes of control and reverse takeovers (see part 3 of Appendix 3G of the TSX-V Corporate Finance Manual).

Valuation reports generally cost between $US50,000 and $US75,000.

In 2009, MineTech was commissioned to write a Property Report and a Valuation Report on an industrial minerals deposit in Mexico as part of a Qualifying Transaction on the TSX-V.