Technical Report Phosphate and Titanium resource...

Respectfully submitted to: Arianne Resources Inc.

Date: May 8th 2009

Technical Report Phosphate and Titanium

resource estimation of the Lac à Paul property deposit, Saguenay-Lac-St-Jean

Quebec Canada

SGS Geostat Ltd 10 boul. de la Seigneurie Est, Suite 203, Blainville, Québec Canada

t (450) 433 1050 f (450) 433 1048 www.geostat.com www.sgs.com/met

Member of SGS Group (SGS SA)

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Table of Contents

Table of Contents .............................................................................................................................................. ii

List of tables ....................................................................................................................................................... v

List of Figures .................................................................................................................................................... vi

FOREWORD .................................................................................................................................................... 8

1- Summary ......................................................................................................................................................... 9

2- Introduction ................................................................................................................................................. 14

2.1 Terms and units used ............................................................................................................................ 15 2.2 Reliance on Other Experts ................................................................................................................... 16

3- Property Description and Location .......................................................................................................... 17

3.1 Location .................................................................................................................................................. 17 3.2 Property description .............................................................................................................................. 18

4- Accessibility, Climate, Local Resources, Infrastructure and Physiography ........................................ 27

4.1 Accessibility ............................................................................................................................................ 27 4.2 Climate..................................................................................................................................................... 28

Temperature °C ........................................................................................................................................ 28 Precipitations ............................................................................................................................................. 28 Other parameters ...................................................................................................................................... 28 Number of days where ............................................................................................................................ 28

4.3 Local resources ....................................................................................................................................... 29 4.4 Infrastructures ........................................................................................................................................ 29 4.5 Physiography .......................................................................................................................................... 31

5- History .......................................................................................................................................................... 33

5.1 Mapping history ..................................................................................................................................... 33 5.2 Works of Exploration history in the region ....................................................................................... 33 5.3 Exploration and historical mineral resources (not 43-101 compliant) .......................................... 37

6- Geology setting ............................................................................................................................................ 38

6.1 Regional geology .................................................................................................................................... 38 6.2 Property Geology ................................................................................................................................... 39

7- Deposit Types .............................................................................................................................................. 42

8- Mineralization .............................................................................................................................................. 43

9 - Other mineralization .................................................................................................................................. 46

10- Exploration 2008-2009 ............................................................................................................................. 48

10.1 Geophysical surveys in Zone 2 .......................................................................................................... 48 10.2 Surface sampling .................................................................................................................................. 51 10.3 Surface sampling results ...................................................................................................................... 51 10.4 Samples density .................................................................................................................................... 53

10.4.1 SGS measurements ....................................................................................................................... 53

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10.4.1 Arianne measurements ................................................................................................................. 55

11- Drilling ........................................................................................................................................................ 56

11.1 Historical Drilling ................................................................................................................................ 56 11.2 Drilling campaign 2008-2009 ............................................................................................................. 56 11.3- Exploration drilling results ............................................................................................................... 60

12. Sampling method and approach .............................................................................................................. 64

13- Sample Preparation, Analyses and Security ........................................................................................... 66

13.1 Sample preparation and analysis ........................................................................................................ 66 13.1.1 Sample preparation at the laboratory ......................................................................................... 66 13.1.2 Analyses at the laboratory ............................................................................................................ 69

13.2 Quality control program ..................................................................................................................... 70 13.3 Security .................................................................................................................................................. 71

14- Data Verification ....................................................................................................................................... 72

14.1 Independent sampling ......................................................................................................................... 72 14.1.1 Phase 1 ........................................................................................................................................... 72 14.1.2 Phase 2 ........................................................................................................................................... 78

14.2 Sample preparation at the laboratory ................................................................................................ 81 14.3 Analyses at the laboratory & Quality control program .................................................................. 81 14.4 Conclusions of verification ................................................................................................................ 85

15- Adjacent Properties ................................................................................................................................... 86

16- Mineral Processing and Metallurgical Testing....................................................................................... 87

17- Mineral Resource and Mineral Reserve Estimates ............................................................................... 89

17.1 Resources .............................................................................................................................................. 89 17.1.1 Data used ....................................................................................................................................... 89

17.1.1.1 Computerized drill hole database used for resources .............................................................................................................. 89 17.1.2 Topographic survey ...................................................................................................................... 91

17.1.2.1 Line cuttings .................................................................................................................................................................................. 91 17.1.2.2 Differential GPS survey along lines by Mesures Lasertech Inc ............................................................................................. 91

17.1.3 Mineralized envelope ................................................................................................................... 94 17.1.3.1 Zone 2 ............................................................................................................................................................................................ 94 17.1.3.2 Paul Zone ....................................................................................................................................................................................... 96 17.1.3.3 Manouane Zone .......................................................................................................................................................................... 100

17.1.4 Mineralized intersections ........................................................................................................... 103 17.1.5 Compositing of assay intervals within mineralized intercepts ................................................................................................. 105 17.1.6 Specific gravity data ....................................................................................................................................................................... 106 17.1.7 Resource block grade interpolation ............................................................................................................................................. 106 17.1.7.1 Zone 2 .......................................................................................................................................................................................... 106 17.1.7.2 Paul Zone ..................................................................................................................................................................................... 108 17.1.7.3 Manouane Zone .......................................................................................................................................................................... 110 17.1.8 Resource estimates ......................................................................................................................................................................... 112

18- Other Relevant Data and Information ................................................................................................ 115

18.1 Market for the commodities ............................................................................................................ 116

19- Interpretation and Conclusions ............................................................................................................ 119

20- Recommendations .................................................................................................................................. 121

20.1 Improvements .................................................................................................................................... 121

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20.2 Work Program to develop the project ............................................................................................ 121

21- References ................................................................................................................................................ 123

22- Certificate of qualification ...................................................................................................................... 125

Appendix 1 – Metallurgical testing report from SGS Lakefield .............................................................. 126

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List of tables Table 1- List of abbreviations ........................................................................................................................ 15 Table 2- Mining titles list (1) from MRNQ GESTIM mining title management system. ..................... 20 Table 3- Mining titles list (2) from MRNQ GESTIM mining title management system. ..................... 21 Table 4- Mining titles list (3) from MRNQ GESTIM mining title management system. ..................... 22 Table 5- Mining titles list (4) from MRNQ GESTIM mining title management system. ..................... 23 Table 6- Mining titles list (5) from MRNQ GESTIM mining title management system. ..................... 24 Table 7- Mining titles list (6) from MRNQ GESTIM mining title management system. ..................... 25 Table 8: List of surface samples in the Lac à Paul property (Tollari, N., and Boulianne, D.,

2008/2009) ................................................................................................................................................ 51 Table 9- Density measurements of hole Man-09-10 by SGS Geostat ..................................................... 53 Table 10- Density measurements of hole Man-09-11 by SGS Geostat ................................................... 53 Table 11- Density measurements of SGS measurements both hole from Manouane .......................... 54 Table 12- Density measurements of hole Z2-08-06 (2008/2009 exploration campaign) ..................... 55 Table 13- Density measurements of hole PAU-08-02 (2008/2009 exploration campaign) ................. 55 Table 14- Drying procedure by ALS Chemex Laboratory in Val d’Or ................................................... 66 Table 15- Crushing procedure by ALS Chemex Laboratory in Val d’Or ................................................ 67 Table 16- Splitting procedure by ALS Chemex Laboratory in Val d’Or ................................................. 67 Table 17- Pulverizing procedure by ALS Chemex Laboratory in Val d’Or ............................................ 67 Table 18- Screening procedure by ALS Chemex Laboratory in Val d’Or ............................................... 68 Table 19: Database assay results labororatory list ....................................................................................... 69 Table 20- Chlorine analysis content by SGS Geostat ................................................................................. 80 Table 21: PAU-08-02 samples analysis results by SGS Lakefield laboratory .......................................... 81 Table 22: PAU-08-12 samples analysis results by SGS Lakefield laboratory .......................................... 82 Table 23: Assays comparison for %P2O5 and %TiO2 between SGS Lakefield and ALS Chemex

databases analysis results ......................................................................................................................... 82 Table 24- Man-09-10 samples analysis results by SGS Lakefield laboratory .......................................... 84 Table 25- Man-09-11 samples analysis results by SGS Lakefield laboratory .......................................... 84 Table 26- Assays comparison for %P2O5 and %TiO2 between SGS Lakefield and ALS Chemex

databases analysis results in the 2nd control phase ............................................................................... 84 Table 27: List of mineralized intersections for ore zone definition ....................................................... 104 Table 28: Resource model for 3 zones 43-101 compliant at various cut-off ........................................ 113 Table 29: Resource model for 3 zones 43-101 compliant at 2% P2O5 cut-off ................................... 114 Table 30: Ranking of Canada Phosphate production in 2007(USG,2007) ............................................ 117 Table 31: Igneous phosphate deposit comparison (Arianne 2009, N.T.): ............................................. 118 Table 32: Official final classified Resource statement 3 zones at 2% P2O5 cut-off ........................... 120 Table 33: Proposed work program and associated cost ........................................................................... 122

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List of Figures Figure 1: Location of the Lac à Paul property in the province of Quebec ............................................. 17 Figure 2- Location of the Lac à Paul property claims ................................................................................ 18 Figure 3- Lac à Paul property boundary with its different studied zones and access roads ................. 19 Figure 4- Screen capture validation window of owner status of the titles on line from GESTIM. .... 25 Figure 5- Claims limit and access roads to the Lac à Paul property ......................................................... 27 Figure 6- General topography along access road to Zone 2 ..................................................................... 31 Figure 7- Typical surface texture enhanced by surface weathering near zone 2 .................................... 32 Figure 8- Location of blocks (St-Hilaire, C., Archer, P., 1997) ................................................................. 34 Figure 9- Magnetometric contour in Manouane zone (St-Hilaire, C., 1997) .......................................... 35 Figure 10- Magnetometric contour in zone Paul property (St-Hilaire, C., 1997) ................................... 36 Figure 11 – Regional geology and location of the anorthosite of Lac-Saint-Jean inside the Grenville

Geological Province map from (Cimon, J. and Hebert, C., 1998, PRO 98-06) .............................. 39 Figure 12- Geological map of the Lac à Paul property and positions of the different claims ............. 41 Figure 13: Cross section of the massive Nelsonite cumulate looking west ............................................. 43 Figure 14: Typical cross section (MAN-2) looking 64 degrees North (ENE) ........................................ 44 Figure 15: Mineralization observed in core during site visit in February 2009 ....................................... 45 Figure 16: Detailed aspect of the mineralization core from Manouane zone ......................................... 45 Figure 17- Other mineralization in the property of the Lac à Paul project by SOQUEM geochemical

surveys (Hébert, C., Beaumier, M., 2000, RG 99-05) .......................................................................... 46 Figure 18- Geochemical surveys of streams and lakes sediments during the summer campaign 1998

(Hébert, C., Beaumier, M., 2000, RG 99-05) ........................................................................................ 47 Figure 19- Location map of geophysical investigation in Zone 2 ............................................................ 49 Figure 20: Magnetic field map from geophysical investigation in Zone 2 (Lambert, G., 2008) .......... 50 Figure 21: Geological map and location of the surface samples 08/09 campaign ................................. 52 Figure 22- Location of zones drilled during campaign (2008/2009) Red ellipsoids. ............................. 58 Figure 23- Map showing the location of the different zones drilled, drill holes and main geology

during 2008/2009 exploration campaign (from Arianne April 2009 report) .................................. 59 Figure 24- The influence of chlorine content on fission track annealing kinetics in apatite (Geotrack

International Laboratory) ........................................................................................................................ 80 Figure 25: Comparison of SGS and ALS Chemex analysis data ............................................................... 83 Figure 26- Comparison of SGS and ALS Chemex analysis data .............................................................. 85 Figure 27- Map of adjacent properties of Lac à Paul property (GESTIM-MRNQ) ............................. 86 Figure 28: Hole PAU-08-10, typical collar view in Geobase ..................................................................... 90 Figure 29: Hole PAU-08-10, typical assay view in Geobase ...................................................................... 90 Figure 30: Position of the surveyed lines for the 3 zones .......................................................................... 91 Figure 31: Layout of lines at the Paul Zone ................................................................................................. 92 Figure 32: Layout of lines at the Manouane Zone ...................................................................................... 92 Figure 33: Layout of lines at Zone 2 ............................................................................................................. 93 Figure 34: Drill hole layout in plan view UTM NAD 83 coordinates ..................................................... 94 Figure 35: Typical cross section labelled Z3 in zone 2 ............................................................................... 95 Figure 36: Oblique view of the interpretation on 10m levels looking North West ............................... 95 Figure 37: Drill hole layout in plan view UTM NAD 83 coordinates ..................................................... 96 Figure 38: Cross sections from West to East from previous plan view .................................................. 98 Figure 39: Oblique view of the interpretation on 10m levels looking North West ............................... 99 Figure 40: Oblique view of the interpretation on 10m levels looking North East ................................ 99 Figure 41: Drill hole layout in plan view UTM NAD 83 coordinates ................................................... 100 Figure 42: Cross sections from west to East looking 60 degrees North(ENE) ................................... 102

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Figure 43: Oblique view of the interpretation on 10m levels looking North East .............................. 102 Figure 44: Block model origin and extent Zone 2 .................................................................................... 106 Figure 45: Search ellipsoid parameters Zone 2 .......................................................................................... 107 Figure 46: Block model origin and extent Paul zone ................................................................................ 108 Figure 47: Search ellipsoid parameters Paul zone ..................................................................................... 109 Figure 48: Block model origin and extent Manouane Zone .................................................................... 110 Figure 49: Search ellipsoid parameters Manouane Zone ......................................................................... 111 Figure 50: Phosphate product price from 2006 to 2008 prior to economic crisis ............................... 116 Figure 51: Phosphate Rock price from 2006 to March 2009 (information from Arianne 2009) ....... 117

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FOREWORD

The mandate of SGS Geostat Ltd given by Arianne Resources Inc. is to carry estimation of resources based on the new drilling carried by this company in 2008 and 2009 and prepare a NI 43-101 compliant technical report. The following report presents the resources estimates with appropriate recommendations.


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1- Summary Arianne Resources Inc. commissioned SGS-Geostat Ltd. (“Geostat”) to carry out the estimation of the mineral resources of the Lac à Paul Phosphorus and Titanium deposit, north of Lac St-Jean, Quebec. This technical report is prepared in compliance with the Standards of Disclosure for Mineral Projects as defined by NI 43-101. The Lac à Paul Property is located in the north of Saguenay Lac St-Jean area, the nearest village is St-Ludger-de-Millot approximately 175km south of the property. The property is 30km east of the Chute-des-Passes Hydro-electrical complex of Rio Tinto ALCAN. The property is approximately 190 km north of the seaport of Grande-Anse (Saguenay) which is a good connection to Saint Laurent River. The property is around on latitude 49º 47’ North and longitude 70º 50’ west. In the SNRC system, the references maps are 22E/10 and 22E/15. At the beginning of the sixty’s, geological mapping and geochemistry studies have been done in the area of the SNRC map 22E/15 where we could find the main area of the Lac à Paul property. Since 1995, mining explorations of the anorthosite complex of Lac Saint-Jean increase. And many mineralogical indexes were found (Cu-Ni and Ti-P) by geologists and the Virginia Gold Mines Inc. company. And in 1998, Phosphorus & Titanium showing found in the area of the Lac à Paul have been upgrade during prospection campaign conducted by the Mining Funds of Saguenay-Lac-Saint-Jean and interesting apatite values (> 20%) were found (Hébert, C., 1998). On May 1999, a petrographic description of the mineralized zone was done by the IOS Services Géoscientifiques Inc. And on December 1999, Arianne Resources Inc. took an option on the property. On March 2000, a drilling campaign in the Zone 1 of the property was completed. The steps following this campaign were the tests of crushing and calculations of the Bonds index by the IOS Services Géoscientifiques Inc. (Aubin, A., 2000). And the preparation and the evaluation study of concentrates quality of ilmenite and apatite were also done by the IOS Services Géoscientifiques Inc. (report 00-197-1, Villeneuve, P., 2000). At the end of this study, the conclusion was that these 2 minerals are easy to separate and it’s possible to obtain by crushing and separation two concentrates with high concentrations (46.6 % TiO2 and 41.39 % P2O5) and excellent mineralogical and chemistry purity (> 90%). And no toxic contaminant was detected in proportion of being able to decrease the value of the concentrates. On autumn 2000 and winter 2001, Arianne Resources Inc. carried out additional prospecting work on the property of Lac à Paul. It was a recognition survey and sampling and drilling campaign. The Drilling campaign (autumn 2000 and winter 2001) made possible to estimate inferred resources (not 43-101 compliant) which were not subject of independent verification in compliance with Ni-43-101.


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Inferred resources of 20.1 Mt at a grade of 4.43 % TiO2 and 3.78 % P2O5 were estimated for Zone 1 - Block method of calculation was used (total area of 0.37 km2, average width of 17 m, density of 3.2 and average grades of all the drill intersections)

Inferred resources of 17.6 Mt at a grade of 4.34% TiO2 and 4.27% P2O5 were estimated for Zone 2 (1.1 km long, 250 m width and 20 m deep)

The samples analyses were done by ALS Chemex laboratory from Vancouver, B.C., and independent control samples were processed at SGS laboratory from Lakefield, Ont., Canada and show no bias. Tests of concentrate ore of phosphorus made by SGS Lakefield with these igneous deposits, showed a high rate of concentrate around 39% P2O5. And the quality of concentrate is higher than the most common current concentrates. The ilmenite mineral is also of interest in this deposit as a by-product which needs more works on processing side. + The Lac a Paul phosphate property is made of two groups of claims (claim blocks) and contains concentration of Apatite and Ilmenite within Nelsonite units which are defined as deposits. The property is located north of Lac St-Jean. The Anorthositic igneous complex was put in place inside the gneisses of the Granulites Centrales (CGT) of the Grenville province. + In the past Virginia Gold Mines Inc. & SOQUEM conducted various work programs including: geophysics, prospecting, mapping, grab surface sampling, diamond drilling in the sector but let their property expired. Arianne took significant position in terms of property in the sector 14,725 hectares in 265 claims. Most of the claims are 100% Arianne, 12 are under 85-15% venture with the Saguenay Lac St-Jean Mining fund and 4 have a 1.5 NSR attached to it; claims CDC 2121340, CDC 2121341, CDC 2129818 & CDC 2129819. + A total of 57 diamond drill holes were completed by previous owners and Arianne Resources Inc. on the property. The 2008/2009 holes are spaced approximately 100 meters apart on section with 200 to 250 meters between sections. These holes were sampled generally on 1.5 meter intervals and 3 meters intervals. Assays were completed for oxides and especially P2O5 and TiO2, ,from pulverized rock samples from half drill core. Results show that grades are relatively homogenous. The higher phosphate grades are observed in the Paul Zone. The actual Nelsonite P2O5 and TiO2 rich is bounded by TiO2 horizon. The magnetic anomalies are good indicators of location, size and trends of mineralized zones, however the orientation of the horizon has effect on the magnetic signature of the zones. +Metallurgical testwork completed to date by SGS Lakefield demonstrates that a Phosphate concentrate can be produced by a combination of standard industrial processes or treatment; + The current expected metallurgical recovery from the Lac à Paul phosphate rock based on preliminary laboratory testwork process range from 85 to 92%. Additional work is also required for the Titanium, but a preliminary test shows recovery of 72%. +Independent sampling by SGS Geostat Ltd has indicated that data is good for resource estimation and can be reproduced. No bias is observed.


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+ SGS Geostat completed a Mineral Resource estimate for the property using the historical data with new Arianne Resources Inc. diamond drill holes . The following table presents the current 43-101 compliant estimate: On March 25, 2009, SGS-Geostat Ltd completed a resource estimation of 3 zones in the Lac à Paul property according to the NI 43-101. The cut off used was 2% P2O5 and the results are:

Paul deposit Class Cut‐Off Tonnage Specific Gravity %P2O5 %TiO2

% P2O5 in '000s fixed

Inferred 2 99.315 3.58 7.84 8.24

Manouane deposit Class Cut‐Off Tonnage Specific Gravity %P2O5 %TiO2


Inferred 2 140.632 3.58 5.77 9.01

Zone 2 deposit Class Cut‐Off Tonnage Specific Gravity %P2O5 %TiO2


Inferred 2 64.099 3.23 4.52 4.51

TOTAL RESOURCES (Paul+Manouane+Zone 2)

Class Cut‐Off Tonnage Specific Gravity %P2O5 %TiO2


Inferred 2 304.046 3.51 6.18 7.81

The actual completed work carried by Arianne Resources Inc. shows the property has important phosphate resources and has significant potential to increase. The metallurgical testing indicates feasible processing to generate a sellable concentrate of good quality. Arianne Resources Inc. having these three trumps in hand, SGS Geostat Ltd. concludes the property merit additional work and progressive development.


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+ Arianne Resources Inc. should acquire the most recent high resolution satellite image to integrate to GIS. + All geological, geographical, geophysical, property boundaries, access and surface analytical data should be integrated into a Geographical Information System with the satellite images. The proposed Phase 1 program consists in preparation of a preliminary economic assessment which will enable Arianne Resources Inc. to prepare documentation for environmental permitting and if positive to proceed to the prefeasibility level in 2010. Most of the work should focus on the Paul zone which has better grade and low overburden. The preliminary economic assessment program: A) Diamond drilling program of 5,000 m of NQ drilling. The program has 3 goals:

a) Increase the quantity and quality of resources in Zones: Paul & Manouane b) Validate orebody model orientations c) Test other anomalies on the property. d) Recover mineralized material for additional metallurgical testing. e) RQD should be done on all core and also SG measurements

B) Metallurgical testing - Develop Process engineering Flowsheet and Pilot plant tests

a) To refine flow sheet for the Apatite b) Develop flow sheet for ilmenite & magnetite to minimize rejects

C) An independent market study D) Start the environmental characterization E) Review legal considerations & permitting F) Prepare environmental management plan in accordance with the progressive reclamation plan G) Validate the economics and financing research H) Realize a preliminary geotechnical study for slope design parameters (shear and compressive strength on core) I) Resource model, Pit optimization and PEA Technical report + Arianne Resources Inc. should prepare a technical report at the end of each phase of exploration providing full description of the program and results with recommendations + SGS Geostat Ltd. formally recommends continuing the development of the project +And finally acquire additional claims located near the property; we suspect highly magnetic mineralization on the fringe of actual claim block and in the extension of the actual property. The following table presents the work program Phase 1 budget to be done with associated costs in Canadian dollars.


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PHASE 1 ‐ PEA program ‐ Lac à Paul Phosphate project 2009 A) diamond drilling program of 5,000 m of NQ drilling. (RQD+SG) 1,000,000.00 $

B) Metallurgical testing - Develop Process engineering Flowsheet and Pilot plant tests 250,000.00 $

C) An independent market study 25,000.00 $

D) Start the environmental characterization 30,000.00 $

E) Review legal considerations & permitting 10,000.00 $

F) Prepare environmental management plan in accordance with a progressive reclamation plan 25,000.00 $

G) Validate the economics and financing research 15,000.00 $

H) Realize a preliminary geotechnical study for slope design 10,000.00 $

I) Resource model Pit optimization and PEA Technical report 75,000.00 $

other: Satellite image 50,000.00 $

Sub-total 1,490,000.00 $

Contingency 10% 149,000.00 $

Total Phase 1 program - PEA 1,639,000.00 $ Claude Duplessis ing OIQ #45523 SGS Geostat Ltd. May 8th 2009


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2- Introduction This study is done with the objective of estimating the apatite resources considering higher commodity market prices of phosphate rocks which are increasing during these last years for many reasons:

Increasing demand for general food production Strong increase in growing biofuels crops Need for additional fertilizer for these new plantations Increased demand by China and cessation of his exports Tight supplies from Middle Eastern and North African suppliers

In early 2000, prices were around 50 $ / ton for apatite concentrate and 70 $ / ton for ilmenite concentrate. In the mid of 2008, the apatite concentrate (or phosphate rock) selling price became more than 450 $ / ton and nowadays. SGS Geostat Ltd. was retained by Arianne Resource Inc. to carry out NI43-101 compliant resource estimate of the Lac à Paul P2O5 & TiO2 property located to the north of Lac St-Jean in the province of Quebec, Canada. This report presents a technical review of the geology and the mineralization. It includes a review of previous works with emphasis on metallurgical testing, a field and core shack visit, independent check samples, an estimation of mineral resources and a proposed program of work in phases. Arianne Resources Inc. has acquired 100% of the property in 2008. As part of its development strategy, the company required the preparation of a NI 43-101 compliant technical report on the Lac à Paul property resources. The report was prepared under the supervision of the Qualified Person Claude Duplessis Eng. Geological engineer. He visited on three times the Lac à Paul property site on August 22nd & 23rd 2008, 12 to 14th of November 2008 and on February 1st to 4th 2009. Independent sampling of witness core during drilling was done by Claude Duplessis Eng. The results are included in this report. The results of resource estimation are based on drilling and exploration data from past owners of the property and drilling of Arianne. The information herein is derived from a review of the documents listed in the References and from information provided by representatives of Arianne Resource Inc.


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2.1 Terms and units used All measurements in this report are presented in metric system. Monetary units are in Canadian dollars (CA$) unless when specified in United States dollars (US$). A table showing abbreviations used in this report is provided below. tonnes or mt Metric tones tpd Tonnes per day Ton corr Tonnage corrected according to the zone dip t, st, ST, ton Short tons (0.907185 tonnes) kg Kilograms g Grams oz Troy ounce (31.1035 grams) oz/t Troy ounce per short ton g/t Grams/tonne or ppm NSR Net Smelter Return ppm, ppb Parts per million, parts per billion ha Hectares ft Feet in Inches m Metres km Kilometres m³ Cubic metres

Table 1- List of abbreviations


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2.2 Reliance on Other Experts The author relies on metallurgist Ben Yu, M.A.Sc. and Hans Raabe for the mineral processing and metallurgical testing section of this report. The author also relies on the independent survey company Mesures Lasertech for the differential GPS topographic survey and the positioning of the holes in the field.


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3- Property Description and Location

3.1 Location The Lac à Paul Property is located in the north of Lac St-Jean area and the nearest city with all major services is the city of Alma about 190km south(figures 1 and 2). The village of Saint-Ludger-de-Milot is around 175 km south. The property is also located at 190 km North from the seaport of Grande-Anse which is a good connection to the open sea via Saguenay and the Saint Laurent River.

Figure 1: Location of the Lac à Paul property in the province of Quebec

The property is around on latitude 49º 47’ North and longitude 70º 50’ west. In the SNRC system, the references maps are 22E/10 and 22E/15.


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3.2 Property description The Lac à Paul is located in a mining property and contains 265 designated claims (CDC) with 14,725 hectares north of Lac St-Jean, about 190 km north from the city of Saguenay. In the property (two blocks of claims see figure below) 5 mineralized zones are identified as containing phosphate rocks, 3 of these 5 zones have sufficient information to allow resource estimation (see figure 3):

- Zone Paul - Zone 2 - Zone Manouane

It important to mention that 10 years ago Arianne had explored 3 zones previously named Zone1, Zone 2 and Zone 3. Two of these zones have historical resources not 43-101 compliant. For this report there are 3 zones which include one from previous work and two new zones as listed above in bullet. The claims are registered in the Province of Quebec electronic system and boundaries in the field may be located with a differential global positioning system (DGPS). The claims are in good standing at the moment of writing this report. There are no environmental liabilities which we are aware of.

Figure 2- Location of the Lac à Paul property claims

.


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Figure 3- Lac à Paul property boundary with its different studied zones and access roads

The Claims of Arianne Resources Inc. have been validated on the MNR Quebec GESTIM website (figure 4) and are listed in table 2


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Type de titre No titre Détenteur(s) (Nom, Numéro et Pourcentage) Feuillet Superficie (Ha)

CDC 2165596 Ressources D'Arianne Inc.. (Les) (16503) 100 % SNRC 22E10 55,67
















































CDC 1024230 Fonds minier du Saguenay‐Lac‐St‐Jean 15 % Ressources SNRC 22E15 55,55 Table 2- Mining titles list (1) from MRNQ GESTIM mining title management system.


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CDC 1024231 Fonds minier du Saguenay‐Lac‐St‐Jean 15 % Ressources SNRC 22E15 55,55














































CDC 2165610 Ressources D'Arianne Inc.. (Les) (16503) 100 % SNRC 22E15 55,61 Table 3- Mining titles list (2) from MRNQ GESTIM mining title management system.


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Figure 4- Screen capture validation window of owner status of the titles on line from GESTIM.

The majority of claims are 100% own by Arianne, a block of 12 claims is own at 85% while 155 belongs to the Saguenay Lac St-Jean mining Fund.


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3.3 Royalties

To SGS Geostat Ltd. knowledge, only a royalty of 1.5% NSR is applicable on 4 claims; CDC 2121340, CDC 2121341, CDC 2129818 and CDC 2129819. This royalty can be purchased at any time for 1,000,000$ Canadian. For the other claims there is no applicable royalties other than normal exploration works requirements to maintain the claims in good standing with the Quebec Minister of Natural Resources.


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4- Accessibility, Climate, Local Resources, Infrastructure and Physiography

4.1 Accessibility It is possible to access the property by two well maintained gravel roads which are used by large lumber trucks. The first, called "Chemin des Passes" begins from the village of Saint-Ludger-de-Milot north of Alma city. This road was built by the company ALCAN (now Rio-Tinto-Alcan) during the "Chute des Passes" dam construction in the southern boundary of the reservoir Péribonka (figure 5). Since then, foresters companies have added a multitude of other paths that contribute to provide good access in the region. The main road goes through the forest from the SW region to the NE. The second access road begins at the Saint David de Falardeau village (Figure 2), north of Chicoutimi. This road is the junction with the "Chemin-des-Passes" SW corner of the sheet 22E/15.

Figure 5- Claims limit and access roads to the Lac à Paul property

Lac à Paul

Manouane River

Hydroelectric Project Betsiamites

Lac Judith

Lac du Caribou

Manouane River

Pipmuacan River


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4.2 Climate Statistics from Bagotville, Saguenay nearest official meteorological station from Météomedia web site as per Tuesday, April 28th 2009 information about Chute des passes is also included. Latitude: 48.20N Longitude: 071.00W Altitude: 159m

Temperature °C

J F M A M J J A S O N D

Maximum -9 -7 0 8 16 22 24 22 17 10 1 -6Minimum -21 -19 -11 -2 3 9 12 11 5 0 -5 -16Average -15 -13 -5 2 9 15 18 16 11 5 -1 -11

Precipitations


Rain (mm) 4 4 12 31 77 89 114 100 99 67 35 8Snow (cm) 67 56 48 23 4 0 0 0 1 11 49 86Total (mm) 59 49 52 52 81 89 114 100 99 78 78 77Snow on ground (cm) 48 55 26 1 0 0 0 0 0 1 13 41

Other parameters


Hum. rel. (%) 80 77 74 68 65 67 71 74 77 78 82 81Wind speed (km/h) 16 16 18 17 16 14 12 12 14 15 16 16Wind direction 270 270 270 270 90 270 270 270 270 270 270 270

Number of days where


Temp.<=0°C 31 28 30 23 9 0 0 0 4 15 26 31Rain >=0.2 mm 2 1 3 8 14 15 15 16 17 14 8 2Rain >=5 mm 0 0 0 2 5 6 7 7 6 5 2 0Rain >=10 mm 0 0 0 0 2 3 4 3 3 2 1 0Rain >=25 mm 0 0 0 0 0 0 0 0 0 0 0 0Snow >=0.2 cm 20 16 13 7 2 0 0 0 0 4 14 20Snow >=5 cm 4 4 3 2 0 0 0 0 0 0 4 6Snow >=10 cm 1 1 1 0 0 0 0 0 0 0 1 2Snow >=25 cm 0 0 0 0 0 0 0 0 0 0 0 0


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Pcpn total>=0.2 mm 20 16 14 13 15 15 15 16 17 16 19 20Pcpn total>=5 mm 4 4 3 4 6 6 7 7 7 5 5 5Pcpn total>=10 mm 1 0 1 1 3 3 4 3 3 2 2 2Pcpn totale>=25 mm 0 0 0 0 0 0 0 0 0 0 0 0Snow Cover>=1cm 31 28 31 17 0 0 0 0 0 1 17 30Snow Cover>=5cm 31 28 29 13 0 0 0 0 0 0 13 28Snow Cover>=10cm 30 28 29 11 0 0 0 0 0 0 9 25Snow Cover>=20cm 26 27 26 7 0 0 0 0 0 0 3 17Snow Cover>=50cm 10 14 11 2 0 0 0 0 0 0 0 4The above statistics represent average values of the meteorological parameters for each month of the year. Sampling represents 30 years from 1961 to 1991. Meteorological data of Chute des Passes, closest area to the property with available data between May 03, 2008 and May 03, 2009: Maximum temperature: 30.6 °C Date with maximum temperature: September 2, 2008 Minimum temperature: -38.4 °C Date with minimum temperature: January 14, 2009 Precipitations: 19 mm

4.3 Local resources The region of Lac St-Jean has an extensive agricultural and forestry industry, it also has a significant hydro-power dam system to supply electricity to the aluminum production and transformation industry. The mining operations are mainly quarries for aggregates and dimensional stone. One world renown underground Niobium mine is located at St-Honoré Saguenay which is owned by IAMGOLD. Even if the region is not a mining area, qualified personal may be found in the region. The University of Quebec in Chicoutimi has a well developed geological department. The Chibougamau area is around 230 km far from the Lac à Paul project and offers also mining facilities. The city of Alma can provide basic needs such as food and limited accommodation. Several surrounding cities with their distinct services may also provide extensive contractor services and supplies within 200 km.

4.4 Infrastructures The main infrastructure at the site is the access roads which are generally in good condition. The property area is large enough to support mining operations, infrastructures, processing facilities, waste dump and tailings. The nearest power line is the major transmission line from Chute-des-Passes. Another power line which Arianne project could connect to is at the former wollastonite


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project (Orleans Resources) near Saint-Ludger-de-Millot. Otherwise the Lac à Paul project accesses has many facilities left by forestry activities and the property is in the neighbourhood of hydroelectric projects Betsiamites.


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4.5 Physiography The hills in the region are usually between 425 and 675 meters above sea level. The property is adjacent to lakes and rivers (see previous claim figure for illustration). The claims are limited in the north by the river Manouane which shows along its way very steep cliffs. Manouane River crosses from east to west in the north of the region and north to south in the west region. In NW part of the property, the main lake is the Lac à Paul which is approximately 400 meters above sea level.

Figure 6- General topography along access road to Zone 2

In the picture above taken by Claude Duplessis during August 22nd&23rd 2008 site visit, we can see the type of topography with regional vegetation. In the area, forest fires and forest exploitation have decimated much of the vegetation and contains mainly black spruce. Vegetation includes also white spruce, balsam fir and jack pine. There are also birch, poplar and pine bankesians (St-Hilaire, C., Archer, P., 1997). Along the shores of lakes and rivers, the white cedar is very common. Bogs are also observed in some low regions.


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In the picture below taken by Claude Duplessis during August 2008 site visit, we can also see at left the geologist of Arianne Resources Inc. Nadège Tollari observing the Nelsonite rock in the field. The right pictures shows the coarse apatite mineralization observed in the field near zone 2.

Figure 7- Typical surface texture enhanced by surface weathering near zone 2


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5- History This section is made of information taken from the exploration report work; part apatite-ilmenite Chute des Passes Project (1279-1, Roy, I., 2000). The region was part of an extensive mapping project called "Grenville Project" which was made in the years 1960 and early 1970 by Laurin and Sharma (1975).

5.1 Mapping history 1970: Mapping within the project Grenville by MRN 1997: Identification by C. Hebert (MRNQ) potential mineralization Ni-Cu and Co in the north of the anorthositic rocks of Lac St-Jean at field work of regional recognition. 1998 to 1999: Mapping at 1: 50 000 scale sheets 22E/06, 22E/07, 22E/10, 22E/11, 22E/14 and 22E/15

5.2 Works of Exploration history in the region 1970: NQN Mines Ltd carry out exploration work using geophysical methods, geological mapping and drilling a few kilometers west of Chute des Passes. 1971: SOQUEM achieved forage on a geophysical anomaly with NQN Mines Ltd without obtaining economic values. 1986 to 1988: Lionel Lefebvre, prospector did some trenches excavation on showings known since the 1970s. 1996: Option on claim block on a showing containing copper and nickel of Mining Fund Saguenay-Lac St-Jean by Virginia Gold Mines Inc. Prospecting work performed in 1996, showing gave values above 2.5% Ni-Cu-Co in the east of Lac à Paul (Lake Paul). This property had been taken under option by the junior exploration Virginia Gold Mines. It was also the first heliport mapping large-scale sequencing followed by several blocks of claims. 1997: The Virginia Gold Mines perform various tasks of exploring an EM-mag helicopter of 2067 km with linear spaced lines of 200 m and a survey of 3 423 km with spaced linear line 200 or 400 m. Total: 5490 km. Cut line (5 networks) Survey EMH Maxmin (65.75 km) and Magnetometric survey (65.8 km) Geological mapping, rock sampling, pedogeochem, Stripping and trenches Campaign of diamond drilling of 18 holes to 1 998 m. Claude Hebert, Geology of Quebec, made a series of geological sections of recognition in this region. Rocks of particular interest of Ni-Cu mineralisation have been observed in the NW sector sheet (22E/15) of Lac à Paul and in the NE sector, sheet of Chute-des-Passes (22E/l4).


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The results published in the PRO 98-05 (Hebert, 1998) encourage the Virginia Gold Mines company to realize a second helicopter exploration after which other properties have been staked. The recognition works in 1997 provided the opportunity to confirm potential of apatite (P205). Indeed, several indices have reported excellent phosphate rock values, some more than 20% of apatite. Geophysical surveys in 1997 A magnetic survey and electromagnetic heliport were realized by Sial Geosciences Inc. (St-Hilaire, C., Archer, P., 1997). Five mining blocks located at eastern of Chute-des-Passes were studied. This work was done for Virginia Gold Mines Inc. and it allows highlighting several targets of interest for exploration. The following figure 8 show layout of survey lines and orientation.

Figure 8- Location of blocks (St-Hilaire, C., Archer, P., 1997)


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Extensions on the blocks East and West, South Dyke, Details 1 and 2, maps of field magnetic total and vertical gradient anomalies show a complex pattern. Indeed, areas with high and low magnetic are alternating and present sometimes arc forms, sometimes are elongated or without any simple form. In addition several contacts and geological units have been identified. Area with strong magnetic is probably anorthositic gabbros, whereas the lowest magnetic represent gray gneiss. A basic dyke oriented north-north-east has been clearly mapped in south-eastern bloc South-Dyke. On Manouane block the magnetic anomaly total field (see figure 9 below) is more complex than that observed on the Dyke block north. Two strong anomalies are observed in the southeast corner of the block while a broadband magnetic oriented north-west, crosses the south-west.

Figure 9- Magnetometric contour in Manouane zone (St-Hilaire, C., 1997)

Regarding the electromagnetic surveys on blocks east and West extensions, South Dyke, Details 1 and 2, the method helps for locate three types of anomalous. Any EM conductor type 1 was observed on Dyke block north, while on block Manouane several interesting EM anomalies have been mapped. These anomalies appear to draw unless three axes sub-parallel conductors and can explain the characteristic of a geological fold. The fold axis is oriented east-west and its front is located between lines 1802 and 1901. The following picture shows magnetic anomalies with a high amplitude and oriented NW-SE in the Paul Zone (figure 10).


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Figure 10- Magnetometric contour in zone Paul property (St-Hilaire, C., 1997)

1998: The results of the campaign of 1998 and the apatite data available since 1997 were disclosed in Seminar Information Geology Quebec in November 1998. The Virginia Gold Mines continued exploration and made the following work: - Magnetometric survey and MaxMin (60.7 km) - Mapping, prospecting by BMIV + on the new grids. Exploration of high magnetic accessible by roads (> 57 000 gamma), analyzes drilling for P205 and Ti02 and mineralogical study in CRM. 1999: SOQUEM, already involved in the Sept-Iles apatite deposit, has taken an option on properties of Virginia Gold Mines. In addition, prospectors of Fund Mining of Saguenay-Lac-Saint-Jean made several claims in this region after an exploration campaign based on data provided by the report PRO 98-05 (Hebert, 1998). This document had been published to guide the exploration work for different substances which apatite in the Lac à Paul region. Arianne took an option to the Fund’s claims.


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5.3 Exploration and historical mineral resources (not 43-101 compliant) The following table gives a summary of past exploration works and some historical resources: 1960 1975

Grenville Project (geological mapping campaign)

Identified targets of interest

1996 Mining Fund of Saguenay-Lac-Saint-Jean prospecting work Property had been taken under option by the junior exploration Mines Virginia Gold

- Index with values above 2.5% Ni-Cu-Co has been found in the east of Lac à Paul. - First heliport mapping with large-scale sequencing and blocks of claims building

1997 - Regional recognition project in some properties by geology of Quebec : series of surface geological sections of recognition

- Publication in the PRO 97-05 (Hebert, 1997)

- Virginia Gold Mines Company realizes a second helicopter exploration after

- Recognition mapping of 1997 by Arianne

- Rocks of particular interest of Ni-Cu mineralisation have been observed in the NW sector of Lac à Paul (sheet: 22E/15) and in the NE sector, sheet of Chute-des-Passes (22E/l4).

- Other properties have been staked. - Indices P205 values, more than 20% of

apatite.

1998 Seminar Information Geology Quebec in November 1998

Exploration campaign based on data provided by PRO 98-05 (Hebert, 1998) document: exploration guide work for different substances which the apatite in the region of Lac à Paul.

1999 Settlement of property option between the Virginia Gold Mines Inc. and SOQUEM. Mapping description of mineralized zone

prospection and regional grids Houliere, Duhamel, MHY-Ap, MHY-B, DNE, Nourricier Noir and Manouane Claims staking

2000 Arianne Resources Inc. IOS Services Géoscientifiques Inc did; Drilling in Zone 1, Crushing and calculations of Bonds index

Two concentrates with high concentration found: 46.6 % TiO2 and 41.39 % P2O5) and purity > 90%

Autumn 2000 to Winter 2001

Arianne Resources Inc.: Additional prospecting work Recognition survey and sampling and drilling campaign. Historical resources.

Zone 1 : Inferred resources 20.1 Mt (4.43 % TiO2 and 3.78 % P2O5); 0.37 km2; average width 17 m; density 3.2 (not 43-101 compliant) Zone 2: Inferred resources 17.6 Mt (4.34% TiO2 and 4.27% P2O5 ; 1.1 km long, 250 m width and 20 m deep) (not 43-101 compliant)

July to September 2008

Prospection and surface sampling Surface sampling analyses (Arianne Resources Inc, April 2009)

Extension of interest economic zones and position of drilling campaign. Internal report.


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6- Geology setting

6.1 Regional geology This section is extracted from previous reports done in the MRNF sheet 22E/15 by (Cimon, J., and Hébert, C., MB 98-09) and (Hébert, C. and Beaumier, M., RG 99-05), Geology Quebec; the most relevant information has been translated from French to English language mainly from that report. Occupying an area of nearly 20 000 km squares, the Lac-Saint-Jean anorthosite is the largest anorthositic complex in the world. The entire property is covered by Proterozoic rocks of the Grenville Province. It is part of polycyclic tectonic division according Rivers and al (1989). Rocks in property are mainly composed of intrusive rocks subsequently associated with anorthositic rock of Lac St-Jean (see figure 11). These rocks take the form of coalescing lobes with leuconorites, anorthosite, norite, gabbronorite, gabbro with olivine and gabbro. The lower pyroxenite contains dunites, peridotites, oxides-Fe-Ti rocks, apatite, jotunites and mangerites. In general, the morphology of the lobes of anorthosite is quite similar. These areas are a body with a core which contains anorthosite relatively pure. Rocks surrounding the gneissic complex contain hornblende with quartz-biotite, gneiss, granulitic gneiss and gabbroic ribbon gneiss. These rocks are injected by the intrusion of felsic granite, monzonite and hypersthene (Hébert, C and Beaumier,M , RG 99-05 ). Metamorphism of these rocks is amphibolite facies of upper or granulites. The anorthositic rocks of Lac St-Jean represent an assembly of scales (or sheet) straddles the older gneiss units. The rocks of the Lac à Paul property knew at least two episodes of deformation. Anorthositic massifs are particularly abundant in the Grenville Province. Its economic interest is usually limited to deposits of Fe-Ti-P. However, the discovery of many showings Cu, Ni and Co sulphide in the environment has revived during the last years, the exploration ambition in mineral and the interest of researchers in geosciences (Cimon, J.,and Hébert, C., PRO 98-06). The Grenville Geological Province contains a considerable number of mafic intrusions. It contains magmatic mineralization Ni-Cu and platinum. Regionally, the rocks can be identified into three groups:

- ultramafic sills - intrusions - and gabbroic anorthosites

Ultramafic sills offer the greatest economic potential. This group corresponds to the smaller intrusions. Poirier, 1988 in his thesis, has established a classification of deposits that includes six separate categories: • Ni-Cu deposits in massive sulphide associated with levels of ultramafic sills • Non-economic Ni-Cu deposits disseminated sulphide in mafic intrusions and / or ultramafic with a degree of differentiation more or less high • Ni-Cu (Pd, Pt and Au) deposits in disseminated sulphide in mafic-ultramafic sills well differentiated and tholeitic affinity • Ni-Cu (Au, Pd, and Pt) deposits in disseminated sulphide


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• Ni-Cu deposits semi-massive and / or disseminate to levels associated differentiated anorthositic complexes • Ni-Cu deposits (Ag-Co-Pt-Au) related to shear zones of gabbroic intrusions (presence of arsenide Ni-Co associated to sulphides disseminated) All mineralization observed have always the same mineralogical association (except for the last category). These associations are characterized by a dominance of pyrrhotite to which, is added chalcopyrite, pentlandite and a few quantity of pyrite.

Figure 11 – Regional geology and location of the anorthosite of Lac-Saint-Jean inside the

Grenville Geological Province map from (Cimon, J. and Hebert, C., 1998, PRO 98-06)

6.2 Property Geology The geophysical investigations conducted by Sial Geosciences Inc. (St-Hilaire, C., 1997, GM56149) and mandate by Virginia Gold Mines Inc. Company highlight several targets of interest for exploration. After data processing, they identify several contacts and geologic units. The area with strong magnetic field is recognized as anorthositic gabbros and the one with low magnetic field represents gray gneiss. The area contains also intrusive ultramafic rocks. The Lac à Paul property is located in the MNR sheets 22E/15 and 22/10. Its basement contains rocks belonging the Grenville geological province. The region lies in the belt of allochthonous polycyclic after suggested subdivisions by Rivers and al. (1989) for this geological province. The dominant rocks are a sequence of mafic to ultramafic rocks which contain anorthosite, leuconorite, norite, gabbronorite, gabbro with olivine, gabbro, pyroxenite and locally peridotite, dunite and magnetite.


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The anorthosite, the norite and the leuconorite occupy the most important area of the half southern part of the sheet 22E/15. Ultramafic rocks go especially with the norite.The northern part of the anorthosites is occupied by a large area of gabbronorite coronitic while the SE corner of the region is occupied by a mass gabbroic. The host rock is form by gneiss quartzo-feldspathic with biotite-hornblende, granulitic gneiss, gray gneiss ribbon and pink and gabbroic gneiss. The figure 12 presents the regional geology with claim blocks of Arianne. The youngest outcrop rocks lie in the SW corner. They belong to the granite of La Carpe (~ 35 km2) which contains granite (charnockite) and monzonite (mangerite) with or without hypersthenes. This pluton takes its name after the lake La Carpe located in the west of Chute-des-Passes (22E/l4) (Hébert, C., Beaumier, M., 1999 RG 99-05). The rocks of the anorthositic suite overlap on the gneiss, which had previously, knew one or more phases of deformation. There are sub-horizontal shear zones, located in different scales. Simultaneously, a penetrating mass is developed; it is orthogonal to the plane of overlap with an orientation parallel to the transport direction of the different layers to the ESE or WNW. High layers were also formed. The mylonite zone orientation SSW-NNE, located immediately in the west of the lake Paul (see figure), represents the bottom of one of these high layers. An episode of a later deformation is represented by a sub-vertical ductile shear lineation which plunges to the north but the movement direction could not be determined. Its width is kilometric and its orientation is NNE-SSW with an abrupt dip to SE. Finally, the Duhamel lake is parallel to a lineament almost NS and there is no shear, no apparent movement observed along it. The work done by Arianne Resources Inc. in 2000 and 2001 (GM 58768, GM 58767 & GM 59784) confirmed the presence of anorthosite, anorthositic gabbros and some gneissic horizons in the Lac à Paul area. The master thesis from Sophie Turcotte indicates a general 30 degrees dip to the north, A sub-horizontal stratum is frequently observed. This observed in Zone 2 and Manouane under study, the Paul zone appears to be sub-vertical.


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Figure 12- Geological map of the Lac à Paul property and positions of the different claims

Lac Duhamel

Lac Guy

Lac Froid

Lac àPaul

Direction

to

Saint-L

uger-d

e-Milot

and

Alm

a

Direction to Falardeau and Chicoutimi


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7- Deposit Types The deposits originate from magmatic sedimentation and segregation within the anorthositic complex. The main geological unit is a Nelsonite. The observed facies show variable enrichment in iron, titanium and phosphorus. The MRNF (Cimon, J., & Hébert, C., PRO 98-06) study using eight samples from different lithologies enriched of Fe-Ti ± P (anorthosite to apatite, apatite in peridotite, dunite to apatite, dunite oxide Fe-Ti-Al and magnetite to ilmenite and spinel) demonstrated the existence of variations in the lithologies sampled. In their report of 1998, Jules Cimon and Claude Hébert explain the process at the origin of sequences associated with anorthosites differentiated in six steps:

1. Crystallization and fractionation by density of plagioclase crystals in a deep primary magma chamber, forming crystals and interstitial liquid basalt.

2. Ascension cell of crystals by gravitational instability. 3. Interstitial fluid separation into two immiscible phases: a phase rich in iron (jotunitic) and a

phase rich in silica (mangeritic). 4. Expulsion of immiscible phases by filter pressing and implementation of these phases in new

magma chambers. 5. Density separation of the two immiscible phases: the jotunitic phase at the bottom and the

mangeritic phase on the top. 6. Fractional crystallization of jotunitic phase characterized by the presence of magnetite and

spinel; it may contain more aluminous 3% Cr203, apatite exceeding 20% and aluminous spinels rich in zinc.

Fredette in 2006 made a Master thesis and proposed some modifications and updates according to observations she did during her project.


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8- Mineralization In the sector prospection and geophysical investigations allow the mapping of the magnetic properties of the underlying rocks and define the lithological units. The geological structures contain mineralization in industrial minerals (apatite/phosphorus, ilmenite/titanium) economic interest in gabbroic and anorthositic rocks locally mineralized with concentrations significant magnetite, apatite and ilmenite. For this report 3 zones are under study. In the Zone Paul, rocks encountered in the surveys are anorthosites more or less gabbroic, rocks rich in oxides and apatite from nelsonitic troctolites to nelsonites. The nelsonites are the most interesting in economical point of view for all zones. They correspond to the mineralized zone. The thickness of the observed Paul zone varies from 150 to 300 meters, the actual known extension of the cumulat extent on 1000 meters. The zone has a taffy shape where the center is almost sub-vertical while going East it dip north while going west it dips south. It is actually the richest zone of the property. It is open at depth, to the east and to the West, Northern and southern contacts needs to be detailed as they are now interpreted in relation to magnetic anomaly on surface. The zone is close to surface with very shallow overburden.

Figure 13: Cross section of the massive Nelsonite cumulate looking west

The Zone 2 is of lower grade in phosphorus and titanium than the other two zones; the Paul zone and the Manouane zone. The rocks intercepted by drilling are anorthositic or troctolites composition with, in some cases, an enrichment in oxides and apatite. The grain size is different from the two other zones, some apatite grains are milimetric in size. The thickness of the observed zones varies from 40 up to 80 meters, the actual known extension of the cumulus extent on 1200 meters. There is almost no overburden and the zone is on surface. The zone is open in all directions.


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Rocks intercepted on the Manouane Zone are similar to those observed in the Paul Zone (anorthosites and nelsonitic troctolites to nelsonites) classified as Nelsonite. Similar to the Paul zone, some rocks are highly enriched in oxides and apatite. The thickness of the observed zones varies from 50 up to 165 meters, the actual known extension of the cumulus extent on 900 meters. The zone has a bowl shape. The zone is covered by overburden; it has been drilled because of the magnetic anomaly.

Figure 14: Typical cross section (MAN-2) looking 64 degrees North (ENE)


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Figure 15: Mineralization observed in core during site visit in February 2009

Figure 16: Detailed aspect of the mineralization core from Manouane zone


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9 - Other mineralization The pictures below show various minerals in the Lac à Paul property according to the survey campaign of 1998 by SOQUEM. Details of the sheet 22E/15 show the anomaly of the Lac à Paul. This area is a geochemical field characterized by a combination of Cu + Ni. This region provides the combination of elements present in high levels, Cu, Ni, Co and Mo as shown in figure 17.

Figure 17- Other mineralization in the property of the Lac à Paul project by SOQUEM geochemical surveys (Hébert, C., Beaumier, M., 2000, RG 99-05)


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Anomalies of Fe and V could be interesting for mineralization of vanadium associated with magnetite as shown in figure 18.

Figure 18- Geochemical surveys of streams and lakes sediments during the summer

campaign 1998 (Hébert, C., Beaumier, M., 2000, RG 99-05)


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10- Exploration 2008-2009 The 2008/2009 project has mainly consisted of a sampling campaign performed on some of the claims of the property. The surface exploration is followed by a diamond drilling campaign which has been completed in two (2) phases. The diamond drill holes were made to investigate the grade and continuity of the mineralized apatite zones in order to provide data for estimation of resources in Zone: Paul, Zone 02 and Zone Manouane. Anomaly maps from various magnetic surveys were used to locate the diamond drill holes targets and zones.

10.1 Geophysical surveys in Zone 2 In October 2008, geophysical investigations consisted in surveying total magnetic field were made on the property for the Arianne Resources Inc. (this section is from Lambert, G., 2008 report). The goal of this work was to map the magnetic properties of the underlying rocks in order to define better the lithological units, their boundaries and possibly identify geological structures likely to contain mineralization in industrial minerals (apatite/phosphorus, ilmenite/titanium) economic interest in a gabbroic and anorthositic rocks locally mineralized with concentrations significant magnetite, apatite and ilmenite. Field work (grid line and magnetic surveys) were done by Exploration Services in Rouyn-Noranda. Data processing, geophysical interpretations were made by the geophysical contractor, Gérard Lambert. Work description Geophysical magnetometric were done on grid lines located in the Zone 2 portion of the property, with 16 lines oriented NW-SE (2960) spaced by 100 to 200 meters (Figures 19 and 20). The lines are confined to south-east of the river Castor-qui-Cale. Three tie lines were also established. Several GPS points have been read and recorded on the grid to locate these points in the UTM coordinate system Nad-83 (area 19). The magnetic measurements were made by a precession magnetometer nuclear GSM-19 of GEM-systems. The total field readings were taken systematically to 12.5 meters along all survey lines. The magnetic data were corrected by diurnal drift from measurements of a fixed base station, earth sampling per 10 seconds. The accuracy of the final reading is corrected to 0.1 gammas. Next figure shows 16 magnetic grid lines oriented NW-SE (2960) spaced by 100 to 200 m (Lambert, G., 2008). Results


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Magnetometric surveys have identified gabbroic and anorthositic rocks of variable composition with alternating banded linear north-east/south-west. Their compositions are more or less rich in magnetite. They are located at shallow depths and are linear, irregular, sometimes poorly organized.

Figure 19- Location map of geophysical investigation in Zone 2

Zone 2 Lac

à Paul


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Figure 20: Magnetic field map from geophysical investigation in Zone 2 (Lambert, G., 2008)

The relief shows magnetic amplitude on average around 55500 + 1000 gammas. It is very active, often bumpy, sometimes poorly organized. This is largely explained by the fact that the land studied contains anorthositic gabbros enriched by magnetite and ilmenite. In undisturbed parts, the magnetic amplitude variations often exceed 200 gammas. Most units show a magnetic amplitude with a main orientation NE-SW (Figure 20). The magnetic relief is disrupted by several positive anomalies along corridors oriented at about 0300. The anomalies form is poorly organized and are occasionally isolated linear masses. The sector most affected is between 000E and 600E between lines 1100N and 800N and are opened at both ends. Magnetic anomaly amplitudes can go until 13,000 gammas. The second corridor is situated between 900E and 1200E, and also appears open at both ends. Likely, they are bands or phases of lithological composition enriched by magnetite in anorthositic and in gabbroic rocks. Wavelengths are very short, indicating that the magnetic sources are located at very low and even sub-outcrop.

N


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Some of the following information are taken directly from the 2008/2009 exploration report done for the Lac à Paul property by Tollari, Nadège, trainee geologist and verified by Boulianne, Daniel, geologist.

10.2 Surface sampling The sample surface was made from 21 to 26 July 2008. In total 51 Samples were taken in some sectors of the property. All these samples are listed (table 8 below) and positions are in the figure 21. Échantillon UTM_E83 UTM_N83 Échantillon UTM_E83 UTM_N83 Échantillon UTM_E83 UTM_N83

700351 383926 5513686 700383 375217 5521293 700414 371716 5518746

700352 384055 5513708 700384 375357 5521559 700415 371997 5519038

700353 384158 5513746 700390 377678 5529214 700416 372630 5518841

700354 384532 5513821 700391 378238 5530031 700417 372061 5518999

700355 384798 5514114 700395 375324 5529244 700418 371974 5519976

700365 384512 5515510 700396 375320 5529242 700419 371741 5520604

700366 384771 5515493 700399 381666 5521816 700421 369027 5520601

700370 383349 5513601 700400 382164 5522863 700422 367205 5517624

700371 383328 5513007 700401 382323 5522863 700423 367213 5517599

700372 383219 5512057 700402 382671 5522783 700432 366969 5519159

700373 382732 5511705 700403 382684 5522785 700433 366983 5519196

700374 382714 5511549 700404 382697 5522753 700434 367037 5519316

700375 382674 5514529 700405 383127 5522430 700435 372490 5518876

700379 374925 5519882 700406 383465 5522369 700436 372017 5518998

700380 374936 5520156 700411 374100 5518038 700437 371943 5519246

700381 374955 5520137 700412 373377 5518316 700438 372041 5519633

700382 375044 5520751 700413 372406 5517642 700439 372247 5520927 Table 8: List of surface samples in the Lac à Paul property (Tollari, N., and Boulianne, D.,

2008/2009)

Grab samples taken on the field were sent to ALS Chemex Company in Val d’Or for analyses. These analysis provided grades of phosphorus (P5O2) rocks.

10.3 Surface sampling results The rocks collected were anorthositic gabbros and gabbroic anorthosites and purple anorthosites. The analysis revealed that the rocks in the Lac à Paul sector are generally rich in P2O5. In 51 samples taken, 16 gave values greater than 4% P2O5 and sometimes 9.74% P2O5.These samples have confirmed the interest of Zones 2 and Paul. Absence outcrop on the Zone Manouane and samples have not been taken. Zone 2 samples gave values ranging from 3.38 to 9.74% P2O5 and 4.86 to 11.4% TiO2 (sample 700433, 9.74% P2O5 and 11.4% TiO2). The two samples of the Paul zone gave 7.23% P2O5 and 5.72 TiO2 (700396) and 5.33% P2O5 and 15.9 TiO2 (700395). This sampling campaign has also identified a new area of interest: France zone. This area is located northeast of the Zone 2. Five samples taken from on this zone gave values greater than 4% P2O5, and sometimes up to 9.02% P2O5 and 11.11% TiO2 (700419).(detailed results are available at Arianne office in Saguenay).


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Figure 21: Geological map and location of the surface samples 08/09 campaign


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10.4 Samples density SGS Geostat Ltd took samples of two (2) holes (Man-09-10 and Man-09-11) in order to do a density measurements study. Arianne Resources did also a density study with samples taken from two (2) holes (PAU-08-02 and Z2-08-06).

10.4.1 SGS measurements The results of SGS measurements are summarized in the tables below. The density average calculated is 3.555 g/cm3 from Man-09-10’s quarter core and 3,608 g/cm3 from Man-09-11’s quarter core. The average is 3.58g/cm3 Hole name From To Length vol (ml) weigth (g) density (g/cm3)

Man‐09‐10 51 54 3 2357 8240 3.495969453

Man‐09‐10 54 57 3 2250 8214 3.650666667

Man‐09‐10 57 58.4 1.4 1655 5784 3.494864048

Man‐09‐10 58.4 60.5 2.1 1645 5112 3.107598784

Man‐09‐10 60.5 63 2.5 2055 7648 3.721654501

Man‐09‐10 63 66 3 2355 8920 3.787685775

Man‐09‐10 66 69 3 1930 7128 3.693264249

Man‐09‐10 69 72 3 2205 8214 3.725170068

Man‐09‐10 104.7 108 3.3 2235 7420 3.319910515

Man‐09‐10 108 111 3 2080 7234 3.477884615

Man‐09‐10 111 114 3 2190 7750 3.538812785

Man‐09‐10 114 117 3 2205 8042 3.647165533

Average 3.555053916 Table 9- Density measurements of hole Man-09-10 by SGS Geostat

Hole name FromTo Length vol (ml) weigth (g) density (g/cm3)

Man‐09‐11 12 15 3 2605 8618 3.308253359

Man‐09‐11 15 18 3 2550 9128 3.579607843

Man‐09‐11 18 21 3 2350 8544 3.635744681

Man‐09‐11 21 24 3 2230 8338 3.739013453

Man‐09‐11 24 27 3 2225 8106 3.643146067

Man‐09‐11 27 30 3 2410 8802 3.652282158

Man‐09‐11 30 33 3 2190 8014 3.659360731

Man‐09‐11 33 36 3 2105 7680 3.648456057

Average 3.608233044 Table 10- Density measurements of hole Man-09-11 by SGS Geostat

The density average calculated is 3.580 g/cm3 for Manouane has shown in the next table.


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Lab Longueur vol (ml) masse (g) densité (g/cm3)

1012951 3 2357 8240 3.495969453

1012952 3 2250 8214 3.650666667

1012953 1.4 1655 5784 3.494864048

1012954 2.1 1645 5112 3.107598784

1012955 2.5 2055 7648 3.721654501

1012956 3 2355 8920 3.787685775

1012957 3 1930 7128 3.693264249

1012958 3 2205 8214 3.725170068

1012859 3.3 2235 7420 3.319910515

1012960 3 2080 7234 3.477884615

1012961 3 2190 7750 3.538812785

1012962 3 2205 8042 3.647165533

1012963 3 2605 8618 3.308253359

1012964 3 2550 9128 3.579607843

1012965 3 2350 8544 3.635744681

1012966 3 2230 8338 3.739013453

1012967 3 2225 8106 3.643146067

1012968 3 2410 8802 3.652282158

1012969 3 2190 8014 3.659360731

1012970 3 2105 7680 3.648456057

57.3 43827 156936 3.580806352

Table 11- Density measurements of SGS measurements both hole from Manouane


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10.4.1 Arianne measurements The results of Arianne measurements are summarized in the tables below. The density average calculated is 3.289 g/cm3 from Z2-08-06’s core and 3,634 g/cm3 from PAU-08-02’s core.

Hole name From (m) To(m) Length(m) Density

gr/cm3

Z2-08-06 8.35 9 0.65 3.379697

Z2-08-06 9 10.5 1.5 3.291537

Z2-08-06 10.5 12 1.5 3.125757

Z2-08-06 12 13.5 1.5 3.293107

Z2-08-06 13.5 15 1.5 3.186583

Z2-08-06 15 16.5 1.5 3.308415

Z2-08-06 16.5 18 1.5 3.224402

Z2-08-06 18 19.5 1.5 3.234867

Z2-08-06 19.5 21 1.5 3.401466

Z2-08-06 21 22.5 1.5 3.361937

Z2-08-06 22.5 24 1.5 3.306116

Z2-08-06 24 25.5 1.5 3.363738

Average 3.289802

Table 12- Density measurements of hole Z2-08-06 (2008/2009 exploration campaign)

Hole name From(m) To(m) Length (m) Density

gr/cm3

PAU-08-02 108 109.5 1.5 3.644794596

PAU-08-02 109.5 111 1.5 3.658540298

PAU-08-02 111 112.5 1.5 3.681957968

PAU-08-02 112.5 115.5 3 3.574402412

PAU-08-02 115.5 117 1.5 3.528220273

PAU-08-02 117 118.5 1.5 3.622343967

PAU-08-02 118.5 120 1.5 3.688462185

PAU-08-02 120 120.45 0.45 3.678075512

Average 3.634599651

Table 13- Density measurements of hole PAU-08-02 (2008/2009 exploration campaign)

Conclusion The density measurements of Arianne and SGS are similar. The measurements provided by the four (4) holes (Man-09-10, Z2-08-06, PAU-08-12 and PAU-08-12) give an average density of 3.5 g/cm3. As per grade for each deposit Paul and Manouane are similar and a fixed 3.58 g/cm3 will be used to convert volume to tonnage. For Zone 2 having a lower grade a fixed density of 3.23 g/cm3 is used which correspond to the density of the average grade of the maximum and minimum measurement. In the future all samples should be measured for density and afterward density could be incorporated into the resource model.


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11- Drilling

11.1 Historical Drilling Historical drilling on the property has consisted of diamond drill hole. 1970: NQN Mines Ltd carries out exploration work using geophysical methods, geological mapping and drilling in west of Chute des Passes. No detailed data available. 1997: Mapping project in some properties was conducted by Quebec geology. It was done for series of geological surface sections of recognition. Virginia Gold Mines and SOQUEM did various exploration activities and 18 holes for 1998m were drilled (Isabelle, R., 2000). 2 of these holes are located at Manouane Zone and 2 holes at Paul zone. 1999: On December 1999, Arianne Resources took an option to the property. A drilling campaign by diamond drill BQ was done and the length drilled was 51.56 m. It was two (2) holes located in the Zone 1 and the campaign was completed on March 2000 (IOS, rapport 00-197-2, Girard,R., 2000). 2001: 10 drill holes were made in the first campaign (Internal report, 2000-2001) The length drilled was 270m in order to better define the mineralized horizon. 7 holes were drilled on Zone 1 and 3 holes on Zone 2. At the end of 2001 Arianne Resources Inc. has realized 8 additional holes on Zone 2.

11.2 Drilling campaign 2008-2009 Following the positive results of the surface sampling and increasing Phosphate market value, Arianne Resources Inc. has decided to explore this property in order to prepare first resource estimation with the standard NI 43-101 by the SGS-Geostat Ltd group on 3 main areas of the property (Zone Paul, Zone 2 and Zone Manouane). A diamond drilling campaign was planned in order to better define three of the most promising zones and perform a calculation of resources. This campaign was conducted in two distinct periods by the drilling company Dami-Or of Sullivan, Quebec, Canada. Figures 22 and 23 respectively show the drill hole position. The first campaign took place from October 27 to November 22, 2008. More than 1860 meters were drilled with 13 drill holes on the Zone Paul; and 9 drill holes on Zone 2 totaling about 924 meters. The Paul zone drilling was on 5 sections oriented north/south and separated by 200 to 300 meters. 2


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to 3 drill holes spaced approximately 100 meters had been planned by section. It was possible to test an area around 140 000 m2 with 1 km long. The Zone 2 drilling consisted of 4 sections oriented west/northwest, east/southeast and separate by 200 meters. Each section consisted of 3 holes spaced approximately by 100 meters. It was to test an area of 120 000 m2, but only three sections were completed. The second drilling campaign occurred from 19 January to 7 February 2009. Thirteen (13) drills The A second campaign in February 2009 totaling 1947 m was made on the Manouane Zone. It consisted of 4 sections oriented northwest/southeast. The drills holes were spaced about 200 meters and included 2 to 4 holes spaced approximately 100 meters apart on section. Then, it allowed testing an area of more than 120 000 m2. The following figure 22 from Arianne Resource’s report of April 2009 show drilling location according to claim blocks and geology.


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Figure 22- Location of zones drilled during campaign (2008/2009) Red ellipsoids.

Figure below shows the position of drill holes realized in the 2008 drilling campaign


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Figure 23- Map showing the location of the different zones drilled, drill holes and main geology during 2008/2009 exploration campaign (from Arianne April 2009 report)


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11.3- Exploration drilling results This section presents information as submitted by Arianne April 2009 report and press release. Zone Paul Thirteen (13) holes (see table below) were conducted in the area, nine (9) have intercepted completely or partially the mineralized zone as per Arianne April 2009 report.

Hole name

COORDINATES

Nad 83

Drill holes length +

overburden

Content

Drill holes length UTM EST

UTM NORD P2O5 TiO2

PAU-08-01 374744 5529547 164 m. 7.50% 8.11% 160 m. (total length)

PAU-08-02 374737 5529449 153 m. 7.52% 8.75% 104.5 m. (from 48.5 to 153.0m.)


PAU-08-04 374934 5529345 160 m. 2.18% 2.52% 153 m. ((total length)

PAU-08-05 375139 5529546 201 m. 7.80% 11.01% 151.3 m. (from the top to 160.3 m.)

PAU-08-06 375137 5529350 150 m. 7.40% 6.19% 106.5 m. (from 43.5 to 150.0 m.)


PAU-08-08 375437 5529450 60 m. 8.15% 11.55% 14m. (from the top to 18 .0 m.)

PAU-08-09 375639 5529251 162 m. PAU-08-10 375646 5529348 135 m. PAU-08-11 375438 5529253 156 m. 7.98% 8.71% 153 m. (total length)

PAU-08-12 375430 5529352 126 m. 8.35% 11.29% 66.6 m. (total length)

PAU-08-13 375437 5529450 84 m. Total 1863 m.

The rocks are mostly Nelsonite, troctolitic nelsonite and troctolite and contain amounts of phosphorus and titanium. For example, the hole Pau-08-04 contains on average 2.18% P2O5 and 2.52% TiO2. In addition, it contains several intersections of more than 4% P2O5 and 5% TiO2 (4.83% P2O5 and 5.07 TiO2 on 1.5 m, from 19.50 m to 21 m; 4.88% P2O5 and 5.25 TiO2 on 4.5 m, from 111 m to 115.50 m, 4.23% P2O5 and 5.02 TiO2 on 3 123 m to 126 m). The Nelsonite generally have 2/3 oxydes de Iron(Fe) and Titanium(Ti) with 1/3 apatite. Nine (9) drill holes intercepted the mineralized zone. The intersections of these holes are summarized in the table above.


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The most interesting values are from Pau-08-07 which gave an average of 10.32% P2O5 and 7.80% TiO2 (141 meters of drilling). The intersections of this hole are listed in following table:

Hole name P2O5 TiO2 Length Pau-08-07 14,85 6,53 6 m (de 37,50 à 43,50 m) Pau-08-07 14,31 6,09 4,5 m (de 48,00 à 52,50 m) Pau-08-07 14,35 5,54 1,4 m (de 58,60 à 60,00 m Pau-08-07 16,47 6,59 1,5 m (de 63,00 à 64,50 m) Pau-08-07 15,72 6,16 3 m (de 67,50 à 70,50 m) Pau-08-07 15,07 5,18 1,5 m (de 73,50 à 75,00 m) Pau-08-07 14,50 7,54 1,5 m (de 78,00 à 79,50 m) Pau-08-07 15,62 4,86 1,5 m (de 84,00 à 85,50 m)


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Zone 2 This area is of lower grade for phosphorus and titanium than the other two Zones; Paul and Manouane. The rocks intercepted by drilling are anorthositic or troctolites composition with, in some cases, an enrichment in oxides and apatite. This enrichment was less important than that observed in some rocks in the Paul Zone and the Manouane Zone. However, it is sufficient to observe a mineralized zone with interesting phosphorus and titanium concentrations. In their internal report, Arianne Resources geologist’s choose the limit of phosphorus mineralizing in rock which at least 4% P2O5. In their internal geological report Arianne resources geologist’s mention that the granulometry between the rocks of the Zone 2 and the other two zones is different. Its size is bigger in Zone 2 than the two others. With nine (9) drill holes, eight (8) have intercepted the mineralized zone. This indicates that the deposit is open to a vertical depth of more than 100 meters. And, looking at the values obtained in each drill hole and their position, a slight enrichment of P2O5 can be observed in the east side. The intersections of these holes are summarized in table below. The most interesting hole for Zone 2 is the Z2-08-04 which gave an average of 5.23% P2O5 and 4.76% TiO2 within 97 meters total drill.

Drill hole

COORDINATES Nad 83 Length

drilled +

overburden

Contents

Intersection length (m.)

UTM EST UTM

NORD

P2O5

TiO2

Z2-08-01 366935 5516058 102 m. 4.62% 4.73% 99 m. (total drill) Z2-08-02 366858 5516104 102 m. 4.54% 4.73% 98 m. (total drill) Z2-08-03 366761 5516138 120 m. 4.29% 4.70% 117 m. (total drill) Z2-08-04 367052 5516227 102 m. 5.23% 4.76% 97 m. (total drill)) Z2-08-05 366947 5516271 102 m. 4.78% 4.48% 99 m. (total drill) Z2-08-06 366847 5516312 102 m. 4.93% 4.69% 99 m. (total drill)

Z2-08-07 367131 5516403 99 m. 4.75% 4.50% 66 m. (de 12.0 à 78.0 m.)

Z2-08-08 367040 5516451 93 m. 4.23% 4.52% 43.8 m. (de 3 à 46.8 m.)

3.38% 3.88% 12.1 m. (de 71.33 à

83.4 m.)

Z2-08-09 366955 5516500 102 m. 3.35% 4.23%36.7 m. (de 3 à 39.7 m.)

3.73% 4.78% 33 m. (de 51 à 84 m.) Total 924 m.


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Zone Manouane Rocks intercepted on the Zone Manouane are similar to those observed in the Zone Paul (anorthosites, nelsonitic troctolites and nelsonite). To compare with Zone 2, most of the rocks are highly enriched in oxides and apatite. Of the thirteen (13) drills holes conducted in this area all intercepted the mineralized zone. The Paul zone which seems to be a single mineralized zone, Manouane has two distinct zones separated by a lower grade layer. In holes Man-09-06 and Man-09-11 two zones of mineralization have been identified. The first starts from the surface down to 100 m vertical in Man-09-06 and to a depth nearly 60 m in Man-09-11. The intersections of all the holes are summarized in the table below. The most interesting result from the Man-09-11, gives an average of 7.40% P2O5 and 10.51% TiO2 on 46.5 m corresponding to the first mineralized zone.

Hole name

COORDINATES Nad 83

Length drilled with overburden

Content Intersection length (m.) UTM

EST UTM

NORD P2O5 TiO2

MAN-09-01 381102 5527321 150 5.35% 9.29% 132 m. (from 12 to 150 m.) MAN-09-02 381139 5527232 195 5.73% 9.31% 183 m. (from 12 to 195 m.) MAN-09-03 381213 5527137 150 5.29% 6.74% 76.7 m. (from 73.3 to 150 m.) MAN-09-04 381430 5527138 168 6.38% 8.70% 22.6 m. (from 88.4 to 111 m.) MAN-09-05 381327 5527408 177 6.10% 9.38% 159 m. (from 18 to 177 m.)

MAN-09-06 381367 5527320 165 5.47% 8.70% 150 m. (from 15 to 165 m.)

6.13% 9.96% 91 m. (from 15 to 106 m.) 6.10% 9.04% 40 m. (from 125 to 165 m.)

MAN-09-07 381339 5527226 108 4.93% 9.67% 50.6 m. (from 15 to 65.6 m.) MAN-09-08 381504 5527483 153 6.31% 10.16% 105.4 m. (from 18 to 123.4 m.) MAN-09-09 381604 5527407 144 6.57% 9.12% 119.5 m. (from 18 to 137.5 m.) MAN-09-10 381635 5527312 126 6.03% 9.44% 98 m. (from 20 to 118 m.) MAN-09-11 381730 5527539 162 7.40% 10.51% 46.5 m. (from 12 to 58.5m.) 5.83% 8.43% 89.6 m. (from 69.0 to 158.6m.) MAN-09-12 381826 5527493 129 6.02% 8.78% 75.7 m. (from 12 to 87.70 m.) MAN-09-13 381466 5527577 120 6.04% 9.29% 78.5 m. (from 10 to 88.5m.) Total 1947 m.

Conclusion and recommendations after 2008/2009 work by Arianne Resources geologists These three studied zones (Zone Paul, zone 2 and Zone Manouane) are open laterally. Paul Zone and Manouane Zone are opened to the west. Zone 2 is closed on any side. A new drilling campaign is recommended. As a first step it should work on the three areas already drilled to define better their attitude and their extent. In a second time, the France Zone should be drilling to check its potential. The 2008-2009 work has identified three zones of mineralization that have a sufficient enrichment in phosphorus and titanium for exploitation, but depending on the price of the resources in the market. The results are very encouraging and Arianne Resources Inc. plans to continue work on this property.


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12. Sampling method and approach This section describes the method and approach used by Arianne Resources Inc. The Lac à Paul deposit has been sampled by BQ and NQ diamond drill holes. The drill hole spacing varied from 100 to 125 meters. The cross section spacing varies from 200 meters to 250 meters but generally 220meters. The deposits are recognized over lengths over 1km each and are massive bowl and tabular structure with an average true thickness of about 150 to 300meters depending of the deposit. The rock is competent and core recovery is extremely good. The samples are of good quality and are representative of the intersected rock. The mineralized rock being generally of massive fine grain, SGS Geostat Ltd. does not recommend drilling smaller than BQ diameter. The mineralisation with grade of interest is within the nelsonite unit of the anorthositic complex. This Nelsonite has some inclusions and is crossed from times to times by quartz and dykes which are barren, these sections are not sampled and are considered zero grades. The decision to sample is based on the aspect of the rock and its visual composition. The core is usually sampled and analyse over its full length. The mineralization is associated with significant magnetic expression on surface. We have found that a layer of relatively high grade TiO2 with magnetite is at contact of the Nelsonite, this layer of low grade apatite is difficult to differentiate from the normal mineralization so it is sampled and the analytical results assist in putting the contacts during interpretation phase. The surface sampling by Arianne Resources Inc. is made by hammering the surface rock in order to get about 2 to 5Kg of rock which is put into a bag with a tag and label. The rock is described and the position recorded with a hand held GPS. For the core recovered by diamond drilling, the core boxes were identified, length of core were marked with wood blocks and the boxes were closed and wrapped from drill site to portable core logging and splitting facilities of Arianne Resources Inc. At the core shack the core was reviewed and logged by geologist; sections to sample were identified by the geologists (Christian Tremblay and Roger Ouellet). Afterward the technicians prepare the core and split the core in half to keep a witness core. This was done under supervision of Arianne Resources Inc. contract geologists Christian Tremblay or Roger Ouellet. Samples bags with label and tags were sealed and put into rice bags and identified for shipping to laboratory facilities. There are no reason to believe that work performed by Arianne staff and contractors was not made in a professional manner, hence in SGS Geostat Ltd opinion, the work performed by Arianne is in respect with the standard of best practice for sampling and logging diamond drilling core.


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Initially sample length were at 1.5 meter long, after reception of the first drilling campaign results with relatively low variation of grade within 2 samples of 1.5m, decision was made to increase sample length to 3 meters SGS Geostat Ltd has participated in this decision.


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13- Sample Preparation, Analyses and Security

13.1 Sample preparation and analysis The work records by previous activities include descriptions of samples collected from the property. These samples consist of:

+ Surface samples + Diamond drill core samples It has not been possible to find complete descriptions of sampling methods and approach for all these sample types and past sampling campaigns. The BQ and NQ core was separated in two parts with a hydraulic core splitter, witness core was preserved. The half core sample is put into plastic bags, tagged and sealed. The sample bags where afterward listed and included into a rice bag for shipment to the laboratory. The exploration program, emphasis was on P2O5 and TiO2. And the works mainly aim at defining minerals resources of P2O5 and TiO2. All major oxides were analyzed.

13.1.1 Sample preparation at the laboratory Arianne Resources had shipped the samples to ALS Chemex laboratory in Val d'Or, Quebec. The following procedures are used either separately or combined in a package in order to meet specific sample preparation requirements: Drying Drying is applied when samples are excessively wet.

Table 14- Drying procedure by ALS Chemex Laboratory in Val d’Or


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Crushing Samples that are too coarse to be put directly into a large pulverizing mill, or where the particle size needs to be reduced before taking a representative split for further pulverization, are crushed using jaw crushers.

Table 15- Crushing procedure by ALS Chemex Laboratory in Val d’Or

Splitting Some samples may require splitting into representative sub samples.

Table 16- Splitting procedure by ALS Chemex Laboratory in Val d’Or

Pulverizing All pulverizing procedures make use of “flying disk” or “ring and puck” style grinding mills. Unless otherwise indicated, all pulverizing procedures guarantee that for most sample types at least 85% of the material will be pulverized to 75 micron (200 mesh) or better.

Table 17- Pulverizing procedure by ALS Chemex Laboratory in Val d’Or


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Screening Most pulverizing bowls and pucks are made from a low chrome steel. For “chrome free” pulverizing and non-metallic sample preparation, other bowls are available (i.e. tungsten carbide, agate, zirconium, etc.). For some sample types, one or more size fractions need to be separated from the bulk sample. Other mesh sizes, as well as multiple screening procedures are also available.

Table 18- Screening procedure by ALS Chemex Laboratory in Val d’Or

And at the end samples were analyzed for major elements in the ICP-MS. The lengths of sample drilling analyzed were 1.50 m for drilling Pau-08-01 to Pau-08-07 then it was 3 m for the rest of the campaign.


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13.1.2 Analyses at the laboratory The following table presents the source of the analytical results validated with certificate of analysis on paper. SGS Geostat has carried out a formal review of the assay certificates.

Hole name Laboratory P205% TiO2% Hole name Laboratory P205% TiO2%

Man‐09‐01 ALS Chemex yes yes PAU‐08‐01 ALS Chemex yes yes












Man‐09‐13 ALS Chemex yes yes PAU‐08‐13 ALS Chemex yes yes Hole name Laboratory P205% TiO2%

Z‐2‐08‐01 ALS Chemex yes yes









Table 19: Database assay results labororatory list

The summary table above has allowed us to conclude that Arianne Resources Inc. has relied on ALS Chemex as its main laboratory for this project. According to the certificates in the report of Arianne Resources Inc. (Tollari, N., and Boulianne, D., 2009), SGS Geostat Ltd. concludes that the analytical results were from the same laboratory batch. Some analytical results were presented in oxides while some were expressed by element, in percent or ppm.


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13.2 Quality control program As QC program Arianne Resources Inc. has used standard KPT-1 (lot 29) from Quebec University of Chicoutimi which was inserted at every 50 core samples and sent to ALS Chemex laboratory. Results are reproducible and constant as shown below. In addition to this Arianne Resources Inc. also relied on independent samples taken by SGS Geostat Ltd. as quality control program for this campaign.

CLIENT : RESARI - Ressources D Arianne Inc.# of SAMPLES :35DATE RECEIVED : PROJECT : LAC PAULCERTIFICATE COMMENTS : PO NUMBER :

2008ME-XRFME-XRFME-XRFME-XRFME-XRFME-XRFME-XRFME-XRFME-XRFME-XRFME-XRFME-XRFME-XRFME-XRFME-XRF06

SAMPLESiO2 Al2O3 Fe2O3 CaO MgO Na2O K2O Cr2O3 TiO2 MnO P2O5 SrO BaO LOI TotalDESCRIP% % % % % % % % % % % % % % %927050 54.26 14.73 12.07 6.8 4.4 2.46 1.6 0.02 0.93 0.14 0.16 0.03 0.05 1.61 99.26927100 53.85 14.69 12.02 6.76 4.37 2.44 1.6 0.02 0.93 0.14 0.161 0.02 0.05 1.61 98.66927150 54.19 14.76 12.11 6.8 4.4 2.46 1.61 0.02 0.92 0.14 0.16 0.03 0.05 1.54 99.2927200 54.35 14.72 12.08 6.81 4.41 2.47 1.61 0.02 0.93 0.14 0.161 0.03 0.05 1.6 99.39927250 54.24 14.73 12.08 6.82 4.41 2.45 1.61 0.02 0.94 0.14 0.161 0.03 0.05 1.54 99.23927300 54.23 14.71 12.04 6.79 4.38 2.45 1.59 0.02 0.92 0.14 0.161 0.03 0.05 1.55 99.07927350 54.07 14.69 12.06 6.8 4.39 2.46 1.61 0.02 0.93 0.14 0.16 0.03 0.05 1.62 99.04927400 54.07 14.7 12.05 6.78 4.4 2.46 1.61 0.02 0.92 0.14 0.16 0.02 0.05 1.54 98.92927450 54.06 14.71 12.05 6.78 4.38 2.45 1.6 0.02 0.93 0.14 0.16 0.03 0.05 1.53 98.89927500 53.99 14.69 12.05 6.8 4.4 2.46 1.61 0.02 0.93 0.14 0.161 0.03 0.05 1.62 98.95927550 54.17 14.71 12.06 6.79 4.38 2.46 1.61 0.02 0.92 0.14 0.161 0.03 0.05 1.61 99.11927600 54.19 14.7 12.04 6.78 4.38 2.45 1.6 0.02 0.93 0.14 0.161 0.03 0.05 1.58 99.05927650 54.09 14.71 12.04 6.78 4.38 2.45 1.59 0.02 0.93 0.14 0.16 0.03 0.05 1.58 98.95927700 54.15 14.71 12.05 6.79 4.38 2.46 1.59 0.02 0.93 0.14 0.161 0.03 0.05 1.59 99.06927750 54.12 14.71 12.06 6.8 4.38 2.45 1.59 0.02 0.93 0.14 0.16 0.03 0.05 1.58 99.02927800 54.17 14.7 12.04 6.81 4.39 2.46 1.61 0.02 0.94 0.14 0.16 0.03 0.05 1.56 99.08927850 54.19 14.7 12.06 6.79 4.38 2.45 1.59 0.02 0.93 0.14 0.16 0.03 0.05 1.6 99.09927900 54.13 14.7 12.1 6.81 4.41 2.45 1.6 0.02 0.93 0.14 0.16 0.03 0.05 1.61 99.15927950 54.16 14.73 12.07 6.79 4.39 2.45 1.61 0.02 0.93 0.14 0.161 0.03 0.05 1.53 99.07928000 54.07 14.7 12.04 6.8 4.4 2.45 1.61 0.02 0.93 0.14 0.16 0.03 0.05 1.49 98.9928250 54.14 14.72 12.1 6.79 4.39 2.47 1.6 0.02 0.93 0.14 0.16 0.03 0.05 1.56 99.1928300 54.13 14.71 12.06 6.79 4.38 2.46 1.6 0.02 0.93 0.14 0.161 0.03 0.05 1.62 99.09928350 54.16 14.71 12.05 6.8 4.39 2.45 1.6 0.02 0.93 0.14 0.16 0.03 0.05 1.59 99.08928396 54.23 14.73 12.1 6.81 4.41 2.45 1.6 0.02 0.93 0.14 0.161 0.03 0.05 1.6 99.27

2009ME-XRFME-XRFME-XRFME-XRFME-XRFME-XRFME-XRFME-XRFME-XRFME-XRFME-XRFME-XRFME-XRFME-XRFME-XRF06

SAMPLESiO2 Al2O3 Fe2O3 CaO MgO Na2O K2O Cr2O3 TiO2 MnO P2O5 SrO BaO LOI TotalDESCRIP% % % % % % % % % % % % % % %928450 54.17 14.71 12.08 6.81 4.39 2.45 1.6 0.02 0.93 0.14 0.161 0.03 0.05 1.51 99.05928500 54.06 14.71 12.05 6.79 4.39 2.46 1.59 0.02 0.92 0.14 0.16 0.03 0.05 1.56 98.93928550 54.22 14.75 12.1 6.79 4.41 2.47 1.61 0.02 0.92 0.14 0.161 0.03 0.05 1.62 99.3928600 54.27 14.68 12.05 6.82 4.39 2.47 1.59 0.02 0.93 0.14 0.161 0.03 0.05 1.59 99.19928650 54.21 14.7 12.05 6.78 4.39 2.47 1.6 0.02 0.93 0.14 0.161 0.03 0.05 1.48 99.01928700 54.19 14.71 12.08 6.79 4.39 2.45 1.59 0.02 0.94 0.14 0.161 0.03 0.05 1.61 99.15928750 54.2 14.69 12.03 6.78 4.38 2.45 1.61 0.02 0.93 0.14 0.161 0.03 0.05 1.59 99.06928800 54.35 14.85 12.11 6.82 4.4 2.48 1.61 0.02 0.93 0.14 0.161 0.03 0.05 1.53 99.48928850 54.15 14.68 12.06 6.81 4.4 2.46 1.61 0.02 0.92 0.14 0.161 0.03 0.05 1.57 99.06928900 54.16 14.73 12.05 6.78 4.38 2.45 1.59 0.02 0.93 0.14 0.16 0.03 0.05 1.64 99.11928950 54.09 14.76 12.08 6.81 4.42 2.45 1.61 0.02 0.93 0.14 0.162 0.03 0.05 1.57 99.13

Résultats d'analyse obtenus pour le standard de


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13.3 Security There are no reasons to believe that the assays or samples were tampered with. In SGS Geostat opinion, the work has been done in a professional way. ALS Chemex and Arianne Resources geologists and professional team have a good reputation for their standard work.


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14- Data Verification The author has verified the database assay table against the original paper logs on a random basis and did not find major errors. Extensive verification by colleagues of the author took place. The collar location, azimuth, dip, holes length, assay values, and assay length were checked. Available historical cross sections on paper were reviewed and compared with on screen equivalent cross sections. Independent samples were taken from witness core holes and on outcrop by the author, Claude Duplessis QP. He supervised the preparation and sampling protocol and participated to the sample bags sealing and sent them to the SGS laboratory facilities at Lakefield.

14.1 Independent sampling During the site visit of the property in February 2008, a grab samples was taken. The core shack located at Arianne Resources Inc. facilities is also visited. Independent samples were taken from four witness holes. 64 samples from PAU-08-02 and PAU-08-12 (Phase 1 control) in 2008 and 19 samples from Man-09-10 and Man-09-11 (Phase 2 control) were taken for independent sampling in 2009. Samples were put in plastic bags with sample tag identification and sealed with a tie-wrap. The samples in plastic bags were put into rice bags with sample numbers on it. The rice bags were sealed with tie-wraps and put into SGS Geostat vehicle. The samples were later transported to the SGS Geostat warehouse. The samples were wrapped on a wooden crate and shipped to SGS Lakefield by a commercial carrier.

14.1.1 Phase 1 The samples analysis made by SGS Lakefield laboratory for the phase 1 are summarized is the following tables:


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14.1.2 Phase 2 Analyses of the 2nd phase are summarized in the following tables:


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SGS Geostat did some Chlorine (Cl) analysis with three (3) holes PAU-08-02, Man-09-11 and Man-09-11. Chlorine can be a contaminant when it is present in large proportions and may have destructive properties by introducing differential annealing in apatite. Chlorine analysis results are summarized in the table below:

Hole name From To Length Cl (g/t) Cl(%)

PAU‐08‐02 116.9 118.4 1.5 338 0.0338

PAU‐08‐02 118.4 119.9 1.5 344 0.0344

PAU‐08‐02 119.9 121.4 1.5 281 0.0281

PAU‐08‐02 121.4 122.9 1.5 257 0.0257

PAU‐08‐02 122.9 124.7 1.8 335 0.0335

Man‐09‐10 108 111 3 961 0.0961

Man‐09‐10 111 114 3 760 0.0760

Man‐09‐10 114 117 3 913 0.0913

Man‐09‐11 12 15 3 804 0.0804

Table 20- Chlorine analysis content by SGS Geostat

The SGS Geostat Chlorine analysis content is very low.

Figure 24- The influence of chlorine content on fission track annealing kinetics in apatite

(Geotrack International Laboratory)

This illustrates the typical degree of differential annealing behaviour introduced by chlorine. The difference in the depths at which apatites containing 0.0-0.1 and those containing 0.5-0.6 wt% Cl are totally annealed. In comparison between this observations and SGS Geostat Chlorine analysis results, it can be concluded that the Chlorine content in Zones Paul and Manouane are very low and can’t introduce any phenomena of annealing.


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14.2 Sample preparation at the laboratory SGS Geostat has requested a standard preparation of samples by SGS Lakefield mineral services. The protocol is presented in appendix.

14.3 Analyses at the laboratory & Quality control program The rock samples were at first analyzed by ALS Chemex of Val d’Or laboratory and at a second time SGS Lakefield analyzed 65 samples for verification. And the analysis results are summarized in the tables below:

Type From To Sample numbSample ID Length P2O5% TiO2% Acc.P2O5 Acc. TiO2

PAU‐08‐02 77.9 79.4 927067 485 1.5 6.71 11.2 10.065 16.8

PAU‐08‐02 79.4 80.9 926068 486 1.5 8.64 10.6 12.96 15.9

PAU‐08‐02 80.9 82.4 927069 487 1.5 6.04 11.4 9.06 17.1

PAU‐08‐02 82.4 83.9 927070 488 1.5 6.28 11.3 9.42 16.95

PAU‐08‐02 83.9 85.4 927071 489 1.5 7.45 10.6 11.175 15.9

PAU‐08‐02 85.4 86.9 927072 490 1.5 8.3 10.3 12.45 15.45

PAU‐08‐02 86.9 88.4 927073 491 1.5 9.38 9.92 14.07 14.88

PAU‐08‐02 88.4 89.9 927074 492 1.5 9.83 9.28 14.745 13.92

PAU‐08‐02 89.9 91.4 927075 493 1.5 9.06 9.4 13.59 14.1

PAU‐08‐02 91.4 92.9 927076 494 1.5 8.6 7.74 12.9 11.61

PAU‐08‐02 92.9 94.4 927077 495 1.5 10.3 10 15.45 15

PAU‐08‐02 94.4 95.9 927078 496 1.5 9.85 10.5 14.775 15.75

PAU‐08‐02 95.9 97.4 927079 497 1.5 8.92 10.5 13.38 15.75

PAU‐08‐02 97.4 98.9 927080 498 1.5 8.87 10.1 13.305 15.15

PAU‐08‐02 98.9 100.4 927081 499 1.5 10.9 9.55 16.35 14.325

PAU‐08‐02 100.4 101.9 927082 500 1.5 8.84 10.7 13.26 16.05

PAU‐08‐02 101.9 103.4 927083 251 1.5 8.92 10.8 13.38 16.2

PAU‐08‐02 103.4 104.9 927084 252 1.5 8.61 10.4 12.915 15.6

PAU‐08‐02 104.9 106.4 927085 253 1.5 7.6 9.92 11.4 14.88

PAU‐08‐02 106.4 107.9 927086 254 1.5 7.43 9.85 11.145 14.775

PAU‐08‐02 107.9 109.4 927087 255 1.5 7.52 9.44 11.28 14.16

PAU‐08‐02 109.4 110.9 927088 256 1.5 6.68 10.2 10.02 15.3

PAU‐08‐02 110.9 112.4 927089 257 1.5 7.37 9.6 11.055 14.4

PAU‐08‐02 112.4 113.9 927090 258 1.5 9.27 10.1 13.905 15.15

PAU‐08‐02 113.9 115.4 927091 259 1.5 10.2 9.52 15.3 14.28

PAU‐08‐02 115.4 116.9 927092 260 1.5 9.11 10.6 13.665 15.9

PAU‐08‐02 116.9 118.4 927093 261 1.5 8.91 10.2 13.365 15.3

PAU‐08‐02 118.4 119.9 927094 262 1.5 10 9.87 15 14.805

PAU‐08‐02 119.9 121.4 927095 263 1.5 9.39 9.96 14.085 14.94

PAU‐08‐02 121.4 122.9 927096 264 1.5 8.71 9.69 13.065 14.535

PAU‐08‐02 122.9 124.7 927097 265 1.8 10 10.1 18 18.18 Table 21: PAU-08-02 samples analysis results by SGS Lakefield laboratory


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Type From To Sample numbSample ID Length P2O5% TiO2% Acc.P2O5 Acc. TiO2

PAU‐08‐12 77.3 78 927852 452 0.7 10.9 11.2 7.63 7.84

PAU‐08‐12 78 79.5 927853 453 1.5 16.2 7.27 24.3 10.905

PAU‐08‐12 79.5 81 454 1.5 12.3 10.9 18.45 16.35

PAU‐08‐12 81 82.5 455 1.5 6.24 11 9.36 16.5

PAU‐08‐12 82.5 84 927854 456 1.5 4.09 16.6 6.135 24.9

PAU‐08‐12 84 85.5 457 1.5 4.95 12.3 7.425 18.45

PAU‐08‐12 85.5 87 458 1.5 10.7 7.99 16.05 11.985

PAU‐08‐12 87 88.5 459 1.5 13.7 9.02 20.55 13.53

PAU‐08‐12 88.5 90 927856 460 1.5 10.4 8.92 15.6 13.38

PAU‐08‐12 90 91.5 461 1.5 4.42 17.9 6.63 26.85

PAU‐08‐12 91.5 93 927857 462 1.5 7.75 14.9 11.625 22.35

PAU‐08‐12 93 94.5 463 1.5 10.4 12 15.6 18

PAU‐08‐12 94.5 96 927858 464 1.5 11.4 8 17.1 12

PAU‐08‐12 96 97.5 927859 465 1.5 11.1 8.65 16.65 12.975

PAU‐08‐12 97.5 99 466 1.5 11.6 8.31 17.4 12.465

PAU‐08‐12 99 100.5 467 1.5 10.6 7.83 15.9 11.745

PAU‐08‐12 100.5 102 926860 468 1.5 11.7 8.49 17.55 12.735

PAU‐08‐12 102 103.5 469 1.5 8.67 4.77 13.005 7.155

PAU‐08‐12 103.5 105 927861 470 1.5 7.62 8.04 11.43 12.06

PAU‐08‐12 105 106.5 471 1.5 9.23 8.41 13.845 12.615

PAU‐08‐12 106.5 108 472 1.5 12.4 9.18 18.6 13.77

PAU‐08‐12 108 109.5 927862 473 1.5 11.2 8.63 16.8 12.945

PAU‐08‐12 109.5 111 474 1.5 11.3 9.26 16.95 13.89

PAU‐08‐12 111 112.5 475 1.5 10.1 9.95 15.15 14.925

PAU‐08‐12 112.5 114 476 1.5 7.92 11.7 11.88 17.55

PAU‐08‐12 114 115.5 927864 477 1.5 9.84 10.8 14.76 16.2

PAU‐08‐12 115.5 117 927865 478 1.5 11.1 9.03 16.65 13.545

PAU‐08‐12 117 118.5 479 1.5 11.5 10.7 17.25 16.05

PAU‐08‐12 118.5 120 927866 480 1.5 9.68 10.6 14.52 15.9

PAU‐08‐12 120 121.5 481 1.5 10.7 9.96 16.05 14.94

PAU‐08‐12 121.5 123 927867 482 1.5 10.2 9.74 15.3 14.61

PAU‐08‐12 123 124.5 483 1.5 7.22 6.84 10.83 10.26

PAU‐08‐12 124.5 126.9 484 2.4 9.59 11.8 23.016 28.32 Table 22: PAU-08-12 samples analysis results by SGS Lakefield laboratory

With the control, a minor difference was noticed in the database between ALS Chemex results versus SGS Lakefield laboratory check values. Even if average grades are slightly different, bias is not detected or observed. The average grade of the whole mineralized intersection from ALS Chemex and SGS Lakefield can be matched SGS being lightly higher.

Database (SGS) Database (ALS Chemex)

P2O5 TiO2 P2O5 TiO2

PAU‐08‐02 8.643910 10.10769 8.423516129 10.45387

PAU‐08‐12 9.878851 10.03417 9.733470588 10.32706 Table 23: Assays comparison for %P2O5 and %TiO2 between SGS Lakefield and ALS

Chemex databases analysis results

In the following figure, the data provided by the 2 laboratories have the same variation and can be matched.


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Figure 25: Comparison of SGS and ALS Chemex analysis data

According to the previous comparisons, SGS laboratory in Lakefield has reproduced the standard giving confidence to the validation.


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Phase 2 Analysis results (Man-09-10 and Man-09-11) for phase 1 are summarized in the tables below:

Type From To Length TiO2% P2O5% Acc.P2O5 Acc. TiO2

Man‐09‐10 108 111 3 10.9 6.89 32.7 20.67

Man‐09‐10 111 114 3 10.4 8.82 31.2 26.46

Man‐09‐10 114 117 3 9.91 8.01 29.73 24.03

Table 24- Man-09-10 samples analysis results by SGS Lakefield laboratory

Type From To Length TiO2% P2O5% Acc.P2O5 Acc. TiO2

Man‐09‐11 12 15 3 9.05 7.57 27.15 22.71

Man‐09‐11 15 18 3 10.2 7.99 30.6 23.97

Man‐09‐11 18 21 3 10.4 9.45 31.2 28.35

Man‐09‐11 21 24 3 10.4 8.48 31.2 25.44

Man‐09‐11 24 27 3 10.9 7.65 32.7 22.95

Man‐09‐11 27 30 3 10.7 8.1 32.1 24.3

Man‐09‐11 30 33 3 11.2 7.42 33.6 22.26

Man‐09‐11 33 36 3 10.6 7.65 31.8 22.95

Man‐09‐11 51 54 3 9.87 5.75 29.61 17.25

Man‐09‐11 54 57 3 9.32 7.65 27.96 22.95

Man‐09‐11 57 58.4 1.4 9.23 7.43 12.922 10.402

Man‐09‐11 58.4 60.5 2.1 4.7 3.75 9.87 7.875

Man‐09‐11 60.5 63 2.5 12.3 5.94 30.75 14.85

Man‐09‐11 63 66 3 13.8 5.95 41.4 17.85

Man‐09‐11 66 69 3 10.2 7.65 30.6 22.95

Man‐09‐11 69 72 3 10.8 7.48 32.4 22.44

Man‐09‐11 104.7 108 3.3 9.2 7.9 30.36 26.07 Table 25- Man-09-11 samples analysis results by SGS Lakefield laboratory

With the 2nd control, no difference was noticed in the databases between ALS Chemex results versus SGS Lakefield laboratory check values. Average grades of P2O5 have increased with the SGS Geostat analysis.

BD(SGS) BD(Client)

TiO2% P2O5% P2O5 TiO2

Man‐09‐11 10.27374741 7.361635611 7.093339545 10.79714286

Man‐09‐10 10.40333333 7.906666667 7.874000000 10.81333333 Table 26- Assays comparison for %P2O5 and %TiO2 between SGS Lakefield and ALS

Chemex databases analysis results in the 2nd control phase


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Figure 26- Comparison of SGS and ALS Chemex analysis data

14.4 Conclusions of verification Following the small discrepancy between ALS Chemex data and SGS Lakefield laboratory assay results, a resource model was built. The resource models were built on a the three (3) zones of the Lac à Paul property.


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15- Adjacent Properties The following figure (sheets 22E15 and 22E10 MRNQ) shows the adjacent properties surrounding the Lac à Paul properties. These other properties belong to SOQUEM Inc., Mine Virginia and Holmstead Wayne (4 claims), 2 isolated and 2 adjacent to Arianne south block. As shown below. Twelve claims are shared between Arianne Resources (85% each claim) and the Fonds Minier du Saguenay-Lac-Saint (15% each claim).

Figure 27- Map of adjacent properties of Lac à Paul property (GESTIM-MRNQ)


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16- Mineral Processing and Metallurgical Testing This is an extract of SGS Lakefield report which is in appendix. Resources d’Arianne Inc. submitted samples from the Lac à Paul deposit for a scoping level metallurgical test program. Three composites labelled Zone 2, Man(Manouane) and Pau(Paul) were prepared based on the samples received from the three zones. An overall comp was prepared by combining the samples from the three zones in equal ratio. A sub-sample of the four composites was submitted for chemical analysis and is summarized below.

Flotation testwork was carried out on the four composites to attain an apatite concentrate at commercial grade. Table 2 below presents the flotation results of the four composites. Rougher concentrates with P2O5 recovery in the range of 89-96% were produced for all four of the composites. In the most successful test for the overall comp (F-03), a cleaner concentrate grading 40.1% P2O5 with 86.9% P2O5 recovery. The established flowsheet and flotation conditions from the overall comp were applied to the Zone 2, Man and Pau composites. Similar cleaner concentrate to the overall comp grading 38-40% P2O5 with 85-92% P2O5 recovery was obtained.

Ressources d’Arianne – Lac à Paul Deposit – 12057-001 SGS Minerals Services


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The flotation results from Zone 2 were better than for the Man and Pau samples. Magnetic separation of the flotation feed was found to recover approximately 10% of the TiO2 into the magnetic portion. Magnetic separation by WHIMS on the cleaner concentrate and rougher tailings did not improve results. Insignificant upgrading in P2O5 of the cleaner concentrate was found. The recovery of TiO2 was 72.1% in the magnetic portion in only 5.6% of the cleaner concentrate mass. Magnetic separation on the rougher tailings provided marginal recovery of the TiO2 (75.6%) in the magnetic portion in 60.2% of the rougher tailings mass.


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17- Mineral Resource and Mineral Reserve Estimates There are no mineral reserves 43-101 compliant at this stage on this project.

17.1 Resources

17.1.1 Data used The final drill hole database used for the resource estimation of the Lac à Paul project Zone 2, Paul and Manouane is in file 20090323_Lac_Paul(AS).mdb dated May 8th, 2009. That database has information for 57 drill holes for these. The surface samples are not integrated into the database at the moment. The plotting of this data on maps is in 2D i.e. no elevation and are not equivalent samples versus core holes. A database in MS-Excell format has been transferred to SGS Geostat from the client. SGS Geostat Ltd. Has imported and validated the database into GEOBASE.

17.1.1.1 Computerized drill hole database used for resources + That database has information for 57 drill holes from the entire Lac à Paul property. + Total drill holes length in database is 5708.46 meters. + There are 2440 assay records for %P2O5, %TiO2, %SiO2, %Fe2O3, %AL2O3, %CaO, %K2O, %Na2O, %MnO & %MgO + There are 36 deviation records 32 with Flexit +There are 707 lithology records + There are no RDQ records


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Figure 28: Hole PAU-08-10, typical collar view in Geobase

Figure 29: Hole PAU-08-10, typical assay view in Geobase


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17.1.2 Topographic survey

17.1.2.1 Line cuttings Arianne Resources has contracted line cutters in order to prepare access over the 3 zones of interest; Paul, Manouane and Zone 2. The lines were cut to allow circulation of personnel and give drill access along the lines.

17.1.2.2 Differential GPS survey along lines by Mesures Lasertech Inc Arianne Resources has contracted an independent surveyor to survey topography with a differential GPS along the lines in order to be able to have a representative and adequate surface for resource calculation. At the moment of the survey some holes already drilled so exact position were surveyed while in other case theoretical position was surveyed. Final survey was done with hand help and validated from marks in the field from exact DGPS positioning.

Figure 30: Position of the surveyed lines for the 3 zones


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Figure 31: Layout of lines at the Paul Zone

Figure 32: Layout of lines at the Manouane Zone


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Figure 33: Layout of lines at Zone 2

The AutoCAD file was used to create surface for resource estimation. Each zone has a local field line grid, however UTM NAD 83 is used as coordinate system. The resource model uses the UTM NAD 83 system and the surveyed topography model.


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17.1.3 Mineralized envelope

In order to adequately define the mineralized envelopes, a mineralized solid is defined using geological description and grade information along the drill hole core. The mineralized envelopes are built on sections and are subsequently connected and sliced on levels. The interpretation of the mineralized structures (Nelsonite mass with enriched Apatite content) was made by Claude Duplessis geological engineer and QP. Survey topography and overburden thickness are taken into account in the calculation of mineralized solids. In SGS Geostat Ltd. mineralized envelope interpretation there are zones under study respectively. + Zone 2 centered on 366947.96E, 5516273.78N, + Paul (PAU) Zone centered on 375141.90E, 5529452.00N + Manouane (MAN) Zone centered on 381327.00E, 5527408.00N The following section presents the interpretation on sections which has been meshed afterward in SECTCAD and then loaded in BLKCAD for regular block model resource estimation purposes.

17.1.3.1 Zone 2

Figure 34: Drill hole layout in plan view UTM NAD 83 coordinates


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Figure 35: Typical cross section labelled Z3 in zone 2

Figure 36: Oblique view of the interpretation on 10m levels looking North West


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17.1.3.2 Paul Zone A relatively rich TiO2 layer is observed on the north side of the zone with very low P2O5, this geological tool is used to assist in the interpretation and extension to the east. We are in the opinion the Phosphate rich layer on the last eastern section was missed.



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Figure 38: Cross sections from West to East from previous plan view


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Figure 39: Oblique view of the interpretation on 10m levels looking North West

Figure 40: Oblique view of the interpretation on 10m levels looking North East


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17.1.3.3 Manouane Zone It is important to mention that drilling was done in winter with snow while topographic survey was done prior to freeze and snow. The orebody is chopped by surface but it has not been adjusted for this swelling of overburden(snow).



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Figure 42: Cross sections from west to East looking 60 degrees North(ENE)

Figure 43: Oblique view of the interpretation on 10m levels looking North East


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17.1.4 Mineralized intersections Mineralized intersections are that part of drill holes samples inside the interpreted limits of mineralized zones. Most intersections in drill holes are complete (start and end points at zone limits). A total of 45 intersections have been defined from the holes, some holes having intersected more than one zone and sum are not passing in the zone. The following table is the list of the intersection limit file used for the creation of standard length composites. This is with dilution of gaps. Hole From(m) To(m) Core Length(m) Zone %P2O5 %TiO2

PAU‐08‐06 6.5 150 143.5 PAU_P 7.04 5.94

PAU‐08‐07 12 153 141 PAU_P 10.32 7.8

PAU‐08‐05 9 157.5 148.5 PAU_P 7.85 11.05

PAU‐08‐03 3 159 156 PAU_P 7.45 7.32

PAU‐97‐02 3.8 102 98.2 PAU_P 7.22 9.81

PAU‐08‐08 4 38 34 PAU_P 6.62 10.84

PAU‐08‐02 67.5 153 85.5 PAU_P 8.49 10.14

PAU‐08‐01 4 164 160 PAU_P 7.5 8.11

PAU‐08‐11 3 156 153 PAU_P 7.99 8.7

PAU‐08‐12 69 126 57 PAU_P 9.2 10.54

Z‐2‐08‐04 5 102 97 zone 2 5.23 4.76

Z‐2‐08‐05 3 102 99 zone 2 4.78 4.48

Z‐2‐08‐06 3 102 99 zone 2 4.93 4.69

Z‐2‐08‐01 3 102 99 zone 2 4.62 4.73

Z‐2‐08‐02 4 102 98 zone 2 4.54 4.73

01‐LP‐208 3.05 32 28.95 zone 2 4.81 4.34

Z‐2‐08‐03 3 120 117 zone 2 4.29 4.7

Z‐2‐08‐07 12 78 66 zone 2 4.69 4.48

01‐LP‐207 2.13 32.61 30.48 zone 2 5.01 4.32

01‐LP‐202 2.87 35.05 32.18 zone 2 4.88 4.47

01‐LP‐206 2.13 25.26 23.13 zone 2 4.68 4.35

Z‐2‐08‐08 3 46.8 43.8 zone 2 4.23 4.52

Z‐2‐08‐09 3 84 81 zone 2 3.12 4.17

01‐LP‐205 1.71 20.9 19.19 zone 2 4.44 5.41

01‐LP‐203 2.18 23.91 21.73 zone 2 4.95 4.41

01‐LP‐201 19.45 23.37 3.92 zone 2 4.58 5.39

01‐LP‐209 16.25 32.31 16.06 zone 2 3.9 4.47

01‐LP‐210 2.13 30.85 28.72 zone 2 4.02 4.39

01‐LP‐211 5.5 17.89 12.39 zone 2 2.58 3.18

MAN‐97‐01 24 153 129 man 7.51 9.83

MAN‐97‐02 27 51 24 man 6.62 9.81

MAN‐09‐05 18 177 159 man 6.26 9.63


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MAN‐09‐06 15 106 91 man 6.13 9.96

MAN‐09‐06 125 165 40 man 6.1 9.04

MAN‐09‐07 15 65.6 50.6 man 5.22 10.23

MAN‐09‐13 10 120 110 man 4.69 8.1

MAN‐09‐08 18 153 135 man 5.27 9.3

MAN‐09‐09 18 144 126 man 6.91 9.59

MAN‐09‐10 20 118 98 man 6.48 10.22

MAN‐09‐01 18 150 132 man 5.35 8.27

MAN‐09‐02 12 195 183 man 5.89 9.54

MAN‐09‐03 28 150 122 man 4.28 5.74

MAN‐09‐04 36 112.8 76.8 man 2.96 5.68

MAN‐09‐12 12 129 117 man 4.18 7.08

MAN‐09‐11 12 162 150 man 6.26 9.07

Table 27: List of mineralized intersections for ore zone definition

Average core length mineralization is 87.5 meters.


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17.1.5 Compositing of assay intervals within mineralized intercepts Since original assay intervals do not have all the same length, it is necessary to standardize the length of the grade “support” through numerical compositing before assigning grades to dimensionless “points” in the 3D space (the composite centers) in the block grade interpolation. The majority of assay intervals have a length of 1.5m and 3 meters. The selectivity of 1.5m is not commonly achievable in bulk tonnage mining, therefore a 3m standard length has been elected. This also allows for internal smoothing and internal dilution, since it could be difficult and unrealistic in the Lac a Paul context to exclude dykes and barren inclusions of smaller dimension within a blast. The material not analysed is considered barren with % P2O5 and % TiO2 No capping on grade is done, from our point of view it is not necessary. Compositing is done down hole from the start of mineralized intercepts. Missing assays are assumed to be zero grade. At the end of the mineralized intercepts, the last composite kept is the one with at least a 1.5 meter length. It is important to mention that only composites within the envelope and its vicinity have been used to estimate the mineralized zones. The composites are calculated from original uncapped samples.


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17.1.6 Specific gravity data From the measurements of core, specific gravity to convert volumes into tonnes was a fixed value of 3.23 t/m3 for Zone 2, 3.58 t/m3 for Paul and 3.58 t/m3 for Manouane zone.

17.1.7 Resource block grade interpolation All estimations are done with SGS Geostat Ltd. BLKCAD block modelling and resource estimation software

17.1.7.1 Zone 2 The grades are estimated in each 10 m (EW) x 10 m (NS) x 10 m (Z) block of a regular matrix of 161 columns (EW), 179 rows (NS) and 32 benches (Z) with its center within the limits of the mineralized zones. Altogether, we have estimated 20,272 blocks within the envelope from 383 composites (data points representing 3 meters). The block model is cut by overburden\rock surface and the topography. The average %P2O5 and % TiO2 grade of each block is interpolated by inverse of the distance from the grades of nearby 3 m composites. We have used interpolation parameters based on drill spacing, envelope extension and orientation.

Figure 44: Block model origin and extent Zone 2


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Figure 45: Search ellipsoid parameters Zone 2

For interpolation process, estimation was made with one run: A search ellipse of 350m,150m, 75m maximum composite 10, minimum of 2, maximum from same hole is 4. With long axis North 30 degrees and dipping South East at 20 degrees.


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17.1.7.2 Paul Zone The grades are estimated in each 10 m (EW) x 10 m (NS) x 10 m (Z) block of a regular matrix of 171 columns (EW), 81 rows (NS) and 32 benches (Z) with its center within the limits of the mineralized zones. Altogether, we have estimated 30,669 blocks within the envelope from 395 composites (data points representing 3 meters). The block model is cut by overburden\rock surface and the topography. The average %P2O5 and % TiO2 grade of each block is interpolated by inverse of the distance from the grades of nearby 3 m composites. We have used interpolation parameters based on drill spacing, envelope extension and orientation.

Figure 46: Block model origin and extent Paul zone


SGS Geostat Ltd

Figure 47: Search ellipsoid parameters Paul zone

For interpolation process, estimation was made with one run: A search ellipse of 350m,150m, 75m maximum composite 10, minimum of 2, maximum from same hole is 4. With long axis North 112 degrees and dipping South West at 80 degrees.


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17.1.7.3 Manouane Zone The grades are estimated in each 10 m (EW) x 10 m (NS) x 10 m (Z) block of a regular matrix of 141 columns (EW), 104 rows (NS) and 32 benches (Z) with its center within the limits of the mineralized zones. Altogether, we have estimated 40,698 blocks within the envelope from 563 composites (data points representing 3 meters). The block model is cut by overburden\rock surface and the topography. The average %P2O5 and % TiO2 grade of each block is interpolated by inverse of the distance from the grades of nearby 3 m composites. We have used interpolation parameters based on drill spacing, envelope extension and orientation.

Figure 48: Block model origin and extent Manouane Zone


SGS Geostat Ltd

Figure 49: Search ellipsoid parameters Manouane Zone

For interpolation process, estimation was made with one run: A search ellipse of 350m,150m, 75m maximum composite 10, minimum of 2, maximum from same hole is 4. With long axis North 60 degrees and dipping South East at 20 degrees.


SGS Geostat Ltd

17.1.8 Resource estimates The following resources models are presented for each zone and for the 3 zones. At this stage, according to actual drill spacing and limited contact information and overburden/rock contact the resources are classified as inferred.

Arianne Resources Inc.Lac à Paul - Igneous phosphate project 43-101 compliant resource statementMarch 24th 2009 Claude Duplessis eng. QP



Inferred 0 99.315 3.58 7.84 8.24

Inferred 2 99.315 3.58 7.84 8.24

Inferred 4 98.169 3.58 7.89 8.26

Inferred 6 91.000 3.58 8.09 8.35

Inferred 8 44.082 3.58 9.06 8.5



Inferred 0 144.067 3.58 5.67 8.91

Inferred 2 140.632 3.58 5.77 9.01

Inferred 4 123.097 3.58 6.14 9.38

Inferred 6 78.764 3.58 6.71 9.89

Inferred 8 0.153 3.58 7.63 9.44


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Inferred 0 64.106 3.23 4.51 4.51

Inferred 2 64.099 3.23 4.52 4.51

Inferred 4 52.481 3.23 4.73 4.61

Inferred 6 1.159 3.23 6.38 5.01

Inferred 8 0 3.23 0 0




Inferred 0 307.488 3.51 6.13 7.78

Inferred 2 304.046 3.51 6.18 7.81

Inferred 4 273.747 3.51 6.50 8.06

Inferred 6 170.923 3.58 7.44 9.04

Inferred 8 44.235 3.58 9.06 8.50

Table 28: Resource model for 3 zones 43-101 compliant at various cut-off


SGS Geostat Ltd



Inferred 2 99.315 3.58 7.84 8.24



Inferred 2 140.632 3.58 5.77 9.01



Inferred 2 64.099 3.23 4.52 4.51




Inferred 2 304.046 3.51 6.18 7.81

Table 29: Resource model for 3 zones 43-101 compliant at 2% P2O5 cut-off


SGS Geostat Ltd

18- Other Relevant Data and Information A part of the property lies within Lac à Paul fishing and hunting resort.


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18.1 Market for the commodities All prices indicated in this section are US$. Market prices of phosphate rocks are increasing during these last years for many reasons:

- Increasing demand for general food production - Strong increase in growing biofuels crops - Need for additional fertilizer for these new plantations - Increased demand by China and cessation of his exports - Tight supplies from Middle Eastern and North African suppliers

Phosphate products prices (http://www.wsrw.org/index.php?cat=128&art=735)

Figure 50: Phosphate product price from 2006 to 2008 prior to economic crisis

In early 2000, prices are around 50 $/ton for apatite concentrate and 70 $ / ton for ilmenite concentrate. In the mid of 2008, the apatite concentrate (or phosphate rock) selling price became more than 450 $ / ton and nowadays. Despite the world economic crisis, the price of concentrate stays at around 200$/ton. During 2007, Canada has seen its production decrease and has been ranked 15th of the world producer as shown in table 30.


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Pays Mining Production 2007 (000t)

World Classification

Chine 35 000 1 États-Unis 29 700 2 Maroc et Ouest du Sahara 28 000 3 Russie 11 000 4 Tunisie 7 700 5 Brésil 6 000 6 Jordanie 5 700 7 Syrie 3 800 8 Israël 3 000 9 Afrique du Sud 2 700 10 Égypte 2 300 11 Australie 2 200 12 Togo 1 000 13 Sénégal 800 14 Canada 500 15

Table 30: Ranking of Canada Phosphate production in 2007(USG,2007)

Figure 51: Phosphate Rock price from 2006 to March 2009 (information from Arianne 2009)

http://www.wsrw.org/index.php?cat=128&art=735 and Fertilizer Week. As per available information at the moment of completing this report the peak of 450US$/ton has apparently stabilized at US$200/ton.

0

50

100

150

200

250

300

350

400

450

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nov-

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Start of economic crisis (october 2008 collapse) 200 $/t

50 $/t Price Stabilisation over the

next months


SGS Geostat Ltd

Most recent pricing of phosphate concentrates are (Fertilizer Week, Mars 2009): Concentré de Phosphore 26 mars 2009 02 avril 2009 FOB Morocco (65-75% BPL) 145 - 170 145 – 170 CFR India (72-75% BPL) 170 – 180 170 – 180 The actual processing tests show the possibility to produce a concentrate of 39% P2O5 for the Lac à Paul deposit, this represent approximately 85% of the BPL. The latest price range of 135 et 195$/t for concentrate ranging from 63.5-73.5 %BPL.

Site name Country Tonnage (Mt)

Rock grade (% P2O5)

Concentrate grade (% P2O5)

status

Khibiny Russie 4 000 15 Unknown In operation Tapira Brésil 1010 6,5 35 In operationKovdor Russie 700 7 Unknown In operation Araxa Brésil 619 15 36 In operationSiilinjarvi Finlande 465 4 35,3 In operation Catalao Brésil 275 11 35 In operationJacupiranga Brésil 100 5 36 In operation Martison Canada 118 23 37,5 In developmentLac à Paul Canada 304 6,18 39 In development

*The Quebec Sept-Iles apatite deposit is also in development but no public data is available Table 31: Igneous phosphate deposit comparison (Arianne 2009, N.T.): The Arianne Resources Inc. phosphate property compares well with others and also presents advantages in terms of access to energy for the processing of rock and the making of the concentrate.


SGS Geostat Ltd

19- Interpretation and Conclusions + The Lac a Paul phosphate property is made of two groups of claims (claim blocks) and contains concentration of Apatite and Ilmenite within a Nelsonite unit which are defined as deposits. The property is located north of Lac St-Jean. The Anorthositic igneous complex was put in place inside the gneisses of the Granulites Centrales (CGT) of the Grenville province. + In the past Virginia Gold Mines Inc. & SOQUEM conducted various work programs including: geophysics, prospecting, mapping, grab surface sampling, diamond drilling in the sector but let their property expired. Arianne took significant position in terms of property in the sector 14,725 hectares in 265 claims. Most of the claims are 100% Arianne, 12 are under 85-15% venture with the mining fund of Saguenay-Lac-St-Jean and 4 have a 1.5 NSR attached to it; claims CDC 2121340, CDC 2121341, CDC 2129818 & CDC 2129819. + A total of 57 diamond drill holes were completed by previous owners and Arianne Resources Inc. The 2008/2009 holes are spaced approximately 120 meters apart on section with 200 to 250 meters between sections. These holes were sampled generally on 1.5 meter intervals and 3 meters intervals. Assays were completed for oxides and especially P2O5 and TiO2, ,from pulverized rock samples from half drill core. Results show that grades are relatively homogenous. The higher phosphate grades are observed in the Paul Zone. The actual Nelsonite P2O5 and TiO2 rich is bounded by TiO2 horizon. The magnetic anomalies are good indicators of location, size and trends of mineralized zones, however the orientation of the horizon has effect on the magnetic signature of the zones. +Metallurgical testwork completed to date by SGS Lakefield demonstrates that a Phosphate concentrate can be produced by a combination of standard industrial processes or treatment; + The current expected metallurgical recovery from the Lac à Paul phosphate rock based on preliminary laboratory testwork process range from 85 to 92%. Additional work is also required for the Titanium, but a preliminary test shows recovery of 72%. +Independent sampling by SGS Geostat Ltd has indicated that data is good for resource estimation and can be reproduced. No biais is observed. + SGS Geostat completed a Mineral Resource estimate for the property using the historical data with new Arianne Resources Inc. diamond drill holes . The following table presents the current 43-101 compliant estimate:


SGS Geostat Ltd



Inferred 2 99.315 3.58 7.84 8.24



Inferred 2 140.632 3.58 5.77 9.01



Inferred 2 64.099 3.23 4.52 4.51




Inferred 2 304.046 3.51 6.18 7.81

Table 32: Official final classified Resource statement 3 zones at 2% P2O5 cut-off

The actual completed work carried by Arianne Resources Inc. shows the property has important phosphate resources and has significant potential to increase. The metallurgical testing indicates feasible processing to generate a sellable concentrate of good quality. Arianne Resources Inc. having these three trumps in hand, SGS Geostat Ltd. concludes the property merit additional work and progressive development.


SGS Geostat Ltd

20- Recommendations SGS Geostat Ltd. makes the following recommendations that focus on two aspects: The improvement of the available data and the working plan for the development of the property.

20.1 Improvements + Arianne Resources Inc. should acquire the most recent high resolution satellite image to integrate to GIS. + All geological, geographical, geophysical, property boundaries, access and surface analytical data should be integrated into a Geographical Information System with the satellite images.

20.2 Work Program to develop the project Arianne Resources Inc. has developed a program with a budget in conjunction with SGS Geostat Ltd. to advance the project. The proposed Phase 1 program consists in preparation of a preliminary economic assessment which will enable Arianne Resources Inc. to prepare documentation for environmental permitting and if positive to proceed to the prefeasibility level in 2010. Most of the work should focus on the Paul zone which has better grade and low overburden. The preliminary economic assessment program: C) Diamond drilling program of 5,000 m of NQ drilling. The program has 3 goals:

a) Increase the quantity and quality of resources in Zones: Paul & Manouane b) Validate orebody model orientations c) Test other anomalies on the property. d) Recover mineralized material for additional metallurgical testing. e) RQD should be done on all core and also SG measurements

D) Metalurgical testing - Develop Process engineering Flowsheet and Pilot plant tests

a) To refine flow sheet for the Apatite b) Develop flow sheet for ilmenite & magnetite to minimize rejects

C) An independent market study D) Start the environmental characterization E) Review legal considerations & permitting F) Prepare environmental management plan in accordance with the progressive reclamation plan G) Validate the economics and financing research H) Realize a preliminary geotechnical study for slope design parameters (shear and compressive strength on core) I) Resource model, Pit optimization and PEA Technical report


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+ Arianne Resources Inc. should prepare a technical report at the end of each phase of exploration providing full description of the program and results with recommendations + SGS Geostat Ltd. formally recommends continuing the development of the project +And finally acquire additional claims located near the property; we suspect highly magnetic mineralization on the fringe of actual claim block and in the extension of the actual property. The following table presents the work program Phase 1 budget to be done with associated costs in Canadian dollars. PHASE 1 ‐ PEA program ‐ Lac à Paul Phosphate project 2009 A) diamond drilling program of 5,000 m of NQ drilling. (RQD+SG) 1,000,000.00 $

B) Metallurgical testing - Develop Process engineering Flowsheet and Pilot plant tests 250,000.00 $

C) An independent market study 25,000.00 $

D) Start the environmental characterization 30,000.00 $

E) Review legal considerations & permitting 10,000.00 $

F) Prepare environmental management plan in accordance with a progressive reclamation plan 25,000.00 $

G) Validate the economics and financing research 15,000.00 $

H) Realize a preliminary geotechnical study for slope design 10,000.00 $

I) Resource model Pit optimization and PEA Technical report 75,000.00 $

other: Satellite image 50,000.00 $

Sub-total 1,490,000.00 $

Contingency 10% 149,000.00 $

Total Phase 1 program - PEA 1,639,000.00 $

Table 33: Proposed work program and associated cost


SGS Geostat Ltd

21- References RAPPORT DE LA CAMPAGNE D’EXPLORATION PROPRIÉTÉ DU LAC À PAUL (PHOSPHORE ET TITANE), SNRC 22E10 et 22E15 Saguenay-Lac-Saint-Jean Québec, Canada, (Tollari, N., Boulianne, D., 2008-2009) INTERNAL REPORT, Phosphate-Titanium, Lac à Paul Project, Saguenay-Lac-Saint-Jean, Canada, Arianne Resources, October 2008 LEVÉS MAGNÉTOMÉTRIQUES : RAPPORTS SOMMAIRES SUR DES TRAVAUX GÉOPHYSIQUES AU SOL Lambert, G., Novembre 2008 GM 61185 - RAPPORT SUR LA CAMPAGNE DE FORAGE, SECTEUR MHY, PROJET CHUTE DES PASSES. 2004, Par ROY, I, CHARTRAND, F, TRUDEAU, Y. 85 pages. 3 microfiches. GM 60730 - RAPPORT SUR LA CAMPAGNE DE FORAGE, AVRIL 2003, SECTEUR MHY, PROJET CHUTE DES PASSES (1279). 2003, Par ROY, I. 117 pages. 3 microfiches. GM 60731 - LEVE DE GRAVIMETRIE, PROPRIETE CHUTES-DES-PASSES (1279), GRILLE "MHY". 2003, Par TSHIMBALANGA, S. 13 pages. 3 cartes. 1 microfiche. GM 59784 - RAPPORT DE LA CAMPAGNE D'EXPLORATION, AUTOMNE 2001, PROPRIETE DU LAC A PAUL, PROJET 197. 2002, Par BOULIANNE, D. 192 pages. 5 microfiches. GM 58807 - RAPPORT SUR LA CAMPAGNE DE FORAGE, JUIN 2000, PROJET CHUTE DES PASSES 1279. 2001, Par ROY, I. 191 pages. 9 cartes. 6 microfiches. GM 58815 - RAPPORT SUR LA CAMPAGNE DE FORAGE, OCTOBRE 2000, SECTEUR MHY, PROJET CHUTE DES PASSES 1279. 2001, Par ROY, I. 170 pages. 9 cartes. 7 microfiches. GM 59143 - RAPPORT SUR LA CAMPAGNE DE FORAGE, JUIN 2001, PROJET CHUTE DES PASSES (1279). 2001, Par ROY, I. 171 pages. 8 cartes. 6 microfiches. GM 58769 - PREPARATION ET EVALUATION DE LA QUALITE D'UN CONCENTRE D'APATITE ET D'ILMENITE, PROJET LAC A PAUL. 2000, Par VILLENEUVE, P. 62 pages. 2 cartes. 3 microfiches. GM 58190 - TRAVAUX D'EXPLORATION 1999, PROJET CHUTE DES PASSES 1279, 1279-1. 2000, Par ROY, I. 149 pages. 18 cartes. 7 microfiches. GM 58232 - TRAVAUX D'EXPLORATION 2000, PROJET CHUTE DES PASSES 1279-1, VOLET APATITE-ILMENITE. 2000, Par ROY, I. 48 pages. 1 microfiche GM 58768 - CAMPAGNE DE SONDAGES D'EXPLORATION POUR L'ILMENITE ET L'APATITE, PROJET DU LAC A PAUL. 2000, Par GIRARD, R, BOUDREAULT, A. 21 pages. 1 microfiche.


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GM 58769 - PREPARATION ET EVALUATION DE LA QUALITE D'UN CONCENTRE D'APATITE ET D'ILMENITE, PROJET LAC A PAUL. 2000, Par VILLENEUVE, P. 62 pages. 2 cartes. 3 microfiches. GM 58774 - ESSAIS DE BROYAGE ET CALCULS DE L'INDICE DE BONDS SUR DES MINERAIS D'APATITE-TITANE, PROJETS LAC-A-PAUL ET MIREPOIX. 2000, AUBIN, A. 398 pages. 2 cartes. 9 microfiches. RG 99-05 - GEOLOGIE DE LA REGION DU LAC A PAUL (22E/15). 2000, Par HEBERT, C, BEAUMIER, M. 34 pages. 1 microfiche. MB 98-09 - SEQUENCES DIFFERENCIEES ASSOCIEES AU MASSIF ANORTHOSITIQUE DE LAC-SAINT-JEAN, ORIGINE, MISE EN PLACE ET IMPLICATIONS ECONOMIQUES. 1998, Par CIMON, J, HEBERT, C. 24 pages. 1 microfiche. PRO 98-05 - GUIDE D'EXPLORATION POUR L'APATITE, LE NICKEL ET LE CUIVRE DANS LA REGION DE LAC A PAUL (SAGUENAY-LAC-SAINT-JEAN). 1998, Par HEBERT, C. 9 pages. 1 microfiche. PRO 98-06 - MODELE PRELIMINAIRE SUR L'ORIGINE, LA MISE EN PLACE ET LE POTENTIEL ECONOMIQUE DES SEQUENCES DIFFERENCIEES ASSOCIEES A L'ANORTHOSITE DE LAC-SAINT-JEAN. 1998, Par CIMON, J, HEBERT, C. 8 pages. 1 microfiche. GM 56024 - LEVES MAGNETOMETRIQUE ET D'EMH-MAXMIN, GRILLES NOURRICIER A ET B, MHY-A, MANOUANE ET PAUL. 1997, Par POIRIER, M, GRANGER, B. 18 pages. 13 cartes. 4 microfiches. GM 56149 - LEVE ELECTROMAGNETIQUE ET MAGNETIQUE HELIPORTE, REGION DU LAC SAINT-JEAN. 1997, Par ST-HILAIRE, C. 43 pages. 10 cartes. 8 microfiches. GM 57184 - LEVE ELECTROMAGNETIQUE ET MAGNETIQUE HELIPORTE REGION DE CHUTE-DES-PASSES REGION, LAC ST-JEAN. 1997, ST-HILAIRE, C. ARCHER, P. 65 pages 11 cartes 5 microfiches. ÉTUDE MÉTALLOGÉNIQUE DE GÎTES DE NICKEL, CUIVRE ET PLATINOIDES DE L’OUEST DE GRENVILLE, QUEBEC. Théses M.Sc. POIRIER, G., 1988 RG 99-05 - GEOLOGIE DE LA REGION DU LAC A PAUL (22E/15). 2000, Par HEBERT, C, BEAUMIER, M. 34 pages. 1 microfiche. MB 98-09 - SEQUENCES DIFFERENCIEES ASSOCIEES AU MASSIF ANORTHOSITIQUE DE LAC-SAINT-JEAN, ORIGINE, MISE EN PLACE ET IMPLICATIONS ECONOMIQUES. 1998, Par CIMON, J, HEBERT, C. 24 pages. 1 microfiche. PRO 98-06 - MODELE PRELIMINAIRE SUR L'ORIGINE, LA MISE EN PLACE ET LE POTENTIEL ECONOMIQUE DES SEQUENCES DIFFERENCIEES ASSOCIEES A L'ANORTHOSITE DE LAC-SAINT-JEAN. 1998, Par CIMON, J, HEBERT, C. 8 pages. 1 microfiche.


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22- Certificate of qualification Certificate of Claude Duplessis, Eng. To Accompany the Report entitled: Technical report – Phosphate and Titanium resource estimation of the Lac à Paul property deposit North of Lac St-Jean, Quebec, Canada. Dated May 8th 2009. I, Claude Duplessis, eng., do hereby certify that: I reside at 3 du Carabinier, Blainville, Quebec, Canada, J7C 5B8. I am a graduate from the University of Quebec in Chicoutimi, Quebec in 1988 with a B.Sc.A in geological engineering and I have practised my profession continuously since that time. I am a registered member of the Ordre des ingénieurs du Québec (Registration Number 45523). I am also a registered engineer in the province of Alberta. I am a Member of the Canadian Institute of Mining, Metallurgy and Petroleum and member of the Prospector and Developers Association of Canada. I am a Senior Engineer and Manager of SGS Geostat Ltd. I have worked as an engineer for a total of 20 years since my graduation. My relevant experience for the purpose of the Technical Report is: Over 16 years of consulting in the field of Mineral Resource estimation, orebody modelling, mineral resource auditing and geotechnical engineering. I have read the definition of “qualified person” set out in the National Instrument 43-101 and certify that by reason of my education, affiliation with a professional association and past relevant work experience, I fulfil the requirements to be an independent qualified person for the purposes of NI 43-101. I have prepared and written the technical report. I have personally visited the site on August 22nd and 23rd, on November 12th to 14th 2008 and on February 1st to 4th of 2009 and I have personally taken independent samples at Arianne Resources Inc. core shack facilities on November 2008 and February 2009. I have no personal knowledge as of the date of this certificate of any material fact or material change, which is not reflected in this report. I am independent of Arianne Resources Inc. applying all of the tests set forth in section 1.4 of NI 43-101 and section 3.5 of NI 43-101 Companion Policy. I have read NI 43-101 and Form 43-101F1 and have prepared the technical report in compliance with NI 43-101 and Form 43-101F1; and have prepared the report in conformity with generally accepted Canadian mining industry practice, and as of the date of this certificate, to the best of my knowledge, information and belief, the technical report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading. Signed at Blainville, Quebec this 8th May, 2009 Claude Duplessis, Eng.


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Appendix 1 – Metallurgical testing report from SGS Lakefield

SGS Lakefield Research Limited P.O. Box 4300, 185 Concession Street, Lakefield, Ontario, Canada K0L 2H0 Tel: (705) 652-2000 Fax: (705) 652-6365 www.met.sgs.com www.ca.sgs.com

Member of the SGS Group (SGS SA)

An Investigation into

MMEETTAALLLLUURRGGIICCAALL TTEESSTTIINNGG OONN TTHHEE LLAACC AA PPAAUULL AAPPAATTIITTEE DDEEPPOOSSIITT

prepared for

RReessssoouurrcceess dd’’AArriiaannnnee

Project 12057-001 – Final Report February 24, 2009

NOTE: This report refers to the samples as received.

The practice of this Company in issuing reports of this nature is to require the recipient not to publish the report or any part thereof without the written consent of SGS Lakefield Research Limited.

Ressources d’Arianne – Lac à Paul Deposit – 12057-001

SGS Minerals Services

i

Table of Contents

Page No.

Executive Summary iii

Introduction v

Testwork Summary 1

1. Sample Preparation and Ore Characterization...........................................................1 1.1. Sample Receipt and Preparation.........................................................................1 1.2. Chemical Head Analysis ....................................................................................2

2. Flotation Testing ........................................................................................................2 2.1. Detailed Concentrate Analysis ...........................................................................6

Conclusions................................................................................................................................8 Appendix A Flotation Test Results.............................................................................................9



ii

List of Tables

Table 1: Summary of Head Sample Assay Results ................................................................. iii Table 2: Summary of Flotation Results ................................................................................... iii Table 3: Head Sample Assay Results ........................................................................................2 Table 4: Summary of Flotation Reagent Dosages .....................................................................3 Table 5: Summary of Rougher Concentrate Results..................................................................4 Table 6: Summary of Cleaner Concentrate Results...................................................................4 Table 7: Magnetic Separation (WHIMS) Results......................................................................6 Table 8: Chemical Analysis of Final Concentrate .....................................................................6

List of Figures

Figure 1: Description of Sample Preparation.............................................................................1 Figure 2: Gravity – Flotation Flowsheet for Test F-01..............................................................3 Figure 3: P2O5 Cleaner Concentrate Results..............................................................................5 Figure 4: TiO2 – Fe2O3 Relationship .........................................................................................5



iii

Executive Summary

Ressources d’Arianne submitted samples from the Lac à Paul deposit for a scoping level

metallurgical test program. Three composites labelled Zone 2, Man and Pau were prepared

based on the samples received from the three zones. An overall comp was prepared by

combining the samples from the three zones in equal ratio. A sub-sample of the four composites

was submitted for chemical analysis and is summarized below.

Table 1: Summary of Head Sample Assay Results

Overall Comp Zone 2 Man PauFe2O3 % 33.1 27.1 36.6 32.8

TiO2 % 9.27 4.56 10.4 10.9

P2O5 % 6.92 5.34 7.81 7.34

Flotation testwork was carried out on the four composites to attain an apatite concentrate at

commercial grade. Table 2 presents the flotation results of the four composites. Rougher

concentrates with P2O5 recovery in the range of 89-96% were produced for all four of the

composites. In the most successful test for the overall comp (F-03), a cleaner concentrate

grading 40.1% P2O5 with 86.9% P2O5 recovery. The established flowsheet and flotation

conditions from the overall comp were applied to the Zone 2, Man and Pau composites. Similar

cleaner concentrate to the overall comp grading 38-40% P2O5 with 85-92% P2O5 recovery was

obtained.

Table 2: Summary of Flotation Results

Weight Assays g/t, % % Distribution

% P2O5 Fe2O3 TiO2 P2O5 Fe2O3 TiO2

P2O5 Rougher Conc 31.5 19.9 17.0 5.13 93.1 15.8 17.0

P2O5 Clnr Conc 14.6 40.1 1.46 0.51 86.9 0.63 0.78

P2O5 Rougher Conc 16.6 29.6 6.97 1.21 95.2 4.32 4.77

P2O5 Clnr Conc 11.9 39.5 1.55 0.19 91.5 0.69 0.53

P2O5 Rougher Conc 29.1 23.8 14.02 4.76 90.5 11.03 13.46

P2O5 Clnr Conc 16.8 38.6 3.10 1.20 85.0 1.41 1.96

P2O5 Rougher Conc 19.0 33.3 6.94 2.74 88.6 3.94 4.72

P2O5 Clnr Conc 15.2 39.9 1.98 0.77 85.0 0.90 1.06

Zone 2

Pau

Man

Sample Product

Overall Comp



iv

The flotation results from Zone 2 were better than for the Man and Pau samples. Magnetic

separation of the flotation feed was found to recover approximately 10% of the TiO2 into the

magnetic portion. Magnetic separation by WHIMS on the cleaner concentrate and rougher

tailings did not improve results. Insignificant upgrading in P2O5 of the cleaner concentrate was

found. The recovery of TiO2 was 72.1% in the magnetic portion in only 5.6% of the cleaner

concentrate mass. Magnetic separation on the rougher tailings provided marginal recovery of the

TiO2 (75.6%) in the magnetic portion in 60.2% of the rougher tailings mass.



v

Introduction

A metallurgical test program was initiated by Mr. Bernard Lapointe of Ressources d’Arianne on

the Lac à Paul deposit. The principle scope was to assess the concentrate quality of the apatite.

Minimal work was performed on recovering the illmenite (TiO2). Results were forwarded to Mr.

Lapointe as they became available

Ben Yu, M.A.Sc., Hans Raabe, Senior Technologist Specialist Project Manager

Experimental work by: Ben Yu Report preparation by: Ben Yu, Su McKenzie



1

Testwork Summary

1. Sample Preparation and Ore Characterization

1.1. Sample Receipt and Preparation

Ore samples were received from Ressources d’Arianne on October 24, 2008 and assigned an

internal receipt number 0326-OCT08. The samples received were from three zones and labelled

as Zone 2, Man and Pau. Individual composites from the three zones were prepared as illustrated

in Figure 1. In addition, an overall composite was prepared by combining the three composites

in equal ratios. The composites were prepared by stage-crushing the as-received samples to -10

mesh. These were blended, homogenized, riffled and rotary split into 2 kg charges. A sub-

sample from each of the composites was riffled out and submitted for chemical analysis.

Each Bag (Weighed)

Crush to 1/2 inch1/3rd

Store

2/3rd

Place into one of 3 Composites

Each of 3 Composites: PAU, MAN, Zone2 1/2

Store

1/2

Crush to 10 Mesh Head Sample (WRA)

1/2 1/2

Indiv. Comp (PAU,MAN,Zone2)

Overall Comp Head Sample (WRA)

2-kg Test Charges 2-kg Test Charges

Figure 1: Description of Sample Preparation



2

1.2. Chemical Head Analysis

A sub-sample from each of the individual composites was submitted for head assay analyses.

The head samples were analysed for whole rock analysis (WRA). The results of the head assays

are presented in Table 3.

Table 3: Head Sample Assay Results

Overall Comp Zone 2 Man PauSiO2 % 22.5 34.2 17.7 21.0

Al2O3 % 4.53 10.4 1.87 4.25

Fe2O3 % 33.1 27.1 36.5 32.8

MgO % 11.6 5.97 13.7 12.4CaO % 10.5 9.88 10.8 11.0Na2O % 0.8 2.37 0.15 0.69

K2O % 0.41 1.03 0.21 0.21

TiO2 % 9.27 4.56 10.4 10.9

P2O5 % 6.92 5.34 7.81 7.34MnO % 0.29 0.32 0.29 0.27Cr2O3 % 0.010 < 0.01 0.010 0.020

V2O5 % 0.080 < 0.01 0.11 0.080

LOI % 0.13 -0.33 1.02 -1.06Sum % <100.2 100.8 100.6 99.9

2. Flotation Testing

The test program was designed to attain a final apatite concentrate at commercial grade. A total

of three batch cleaner tests were completed to establish an apatite flotation flowsheet and reagent

scheme. Tests F-01 to F-03 investigated various flotation conditions such as flotation time,

collector dosage, depressant dosage and the effect of regrind on the overall comp. Gravity and

magnetic separations to remove magnetite and illmenite from the flotation feed was explored.

Tests F-04 to F-06 tested the Zone 2, Man and Pau composites with the established flowsheet

and flotation conditions from the overall comp for variability testing. Test F-06 was repeated in

F-07, targeting better P2O5 recovery. Table 4 summarizes the flotation reagent dosages used.

Full detailed test conditions and results can be found in Appendix A. Test F-01 followed the

flowsheet as shown in Figure 2. A gravity and magnetic separation stage was performed to

recover the illmenite prior to flotation. The gravity and magnetic circuits recovered only 12.7%

of the TiO2 with the majority recovered by the magnetic circuit (9.9% TiO2 recovery). The

gravity circuit was abandoned in subsequent tests. The magnetic separation removes

approximately 30% of the Fe2O3, which may hinder flotation, from the flotation feed.



3

Table 4: Summary of Flotation Reagent Dosages

Grind Size Reagent Dosage, g/t

Soda Ash Caustic Starch FA2 Silicate 'N'

Rougher Cleaner Total Rougher Cleaner Total Rougher Cleaner Total Rougher Cleaner Total

F-01 135 - 500 0 500 500 350 850 500 0 500 0 600 600

F-02 135 67 500 0 500 750 300 1050 200 100 300 0 300 300

F-03 130 58 500 0 500 750 250 1000 100 100 200 0 150 150

Zone 2 F-04 133 51 500 0 500 750 200 950 100 100 200 0 100 100

Man F-05 101 50 500 0 500 750 250 1000 100 100 200 0 150 150

F-06 117 55 500 0 500 750 200 950 100 100 200 0 100 100

F-07 114 64 500 0 500 700 100 800 100 150 250 0 100 100

Regr (µm)

Overall Comp

Pau

Sample Test # 1º Grind (µm)

2 kg

Gravity Concentrate

Wilfrey Table

Mozley Table

M

1

1

Rougher Tailings

Cleaner Tailings

Cleaner Concentrate

1

2

3

Product Legend

2

2

2

3

C

T

F

Rougher

1st Cleaner

2nd Cleaner

3rd Cleaner

Figure 2: Gravity – Flotation Flowsheet for Test F-01

A reagent scheme for the rougher circuit was comprised of soda ash (Na2CO3) as the pH

modifier, caustic starch as the iron depressant and FA2 as the collector. The reagents were added

prior to the rougher circuit in a conditioning stage at a pulp density of 70-75% solids. A pulp pH

of 10.5 and at temperatures 25-30ºC during the flotation process was maintained with pH

adjusted warm water. Table 5 shows that 93.9% of the P2O5 was recovered in a rougher

concentrate in test F-01 with 66.6% TiO2 recovery. Further optimization of the reagent dosage



4

and flotation time in test F-02 and F-03 produced rougher concentrates with 93-96% P2O5

recovery and reduced the TiO2 recovery to 17.0%.

Table 5: Summary of Rougher Concentrate Results


% P2O5 Fe2O3 SiO2 TiO2 CaO S P2O5 Fe2O3 SiO2 TiO2 CaO S

Overall Comp F-01 P2O5 Rougher Conc 64.8 10.1 25.7 21.9 9.37 14.6 0.25 93.9 49.7 63.7 66.6 90.9 49.9



Zone 2 F-04 P2O5 Rougher Conc 16.6 29.6 6.97 11.6 1.21 40.6 0.084 95.2 4.32 5.63 4.77 70.0 4.93

Man F-05 P2O5 Rougher Conc 29.1 23.8 14.0 11.9 4.76 32.2 0.227 90.5 11.0 19.6 13.5 89.3 14.8

Pau F-06 P2O5 Rougher Conc 19.9 33.0 7.03 5.96 2.70 43.7 0.089 95.5 71.2 94.9 89.7 96.0 74.6

Pau F-07 P2O5 Rougher Conc 19.0 33.3 6.94 5.78 2.74 44.2 0.098 88.6 3.94 5.23 4.72 79.7 7.79

Sample Test Product

In the cleaner circuit of test F-01, a depressant scheme of caustic starch and silicate ‘N’ was used

to produce a final cleaner concentrate grading 37.0% P2O5 with 80.1% P2O5 recovery. Table 6

summarizes the cleaner concentrate results. The effect of regrinding was investigated in tests F-

02 and F-03. It was shown that collector addition was necessary with the regrind to prevent P2O5

recovery loss in the cleaner stage. The best overall result was found in the cleaner concentrate of

test F-03 which had a grade of 40.1% P2O5 with a 86.9% P2O5 recovery.

Table 6: Summary of Cleaner Concentrate Results


% P2O5 Fe2O3 SiO2 TiO2 CaO S P2O5 Fe2O3 SiO2 TiO2 CaO S

Overall Comp F-01 P2O5 Clnr Conc 15.1 37.0 2.88 4.11 0.93 50.3 0.05 80.1 1.30 2.78 1.53 72.6 2.47



Zone 2 F-04 P2O5 Clnr Conc 11.9 39.5 1.55 2.21 0.19 52.4 0.023 91.5 0.69 0.78 0.53 65.3 0.99

Man F-05 P2O5 Clnr Conc 16.8 38.6 3.10 2.22 1.20 51.8 0.086 85.0 1.41 2.10 1.96 82.9 3.23

Pau F-06 P2O5 Clnr Conc 10.8 40.2 1.70 1.16 0.57 52.7 0.046 60.6 0.55 0.59 0.59 53.6 1.96

Pau F-07 P2O5 Clnr Conc 15.2 39.9 1.98 1.28 0.77 52.5 0.067 85.0 0.90 0.93 1.06 75.9 4.30

Sample Test Product

The flotation flowsheet and reagent scheme established in test F-03 was applied on the Zone 2,

Man and Pau composites in tests F-04 to F-07. Rougher concentrates with P2O5 recovery in the

range of 89-95% was found for the three composites. The results were consistent with those

found in the overall comp.

Figure 3 shows that the cleaner concentrates from the three composites were similar, grading 38-

40% P2O5 at 85-92% P2O5 recovery. Zone 2 provided the best cleaner concentrate with similar



5

grades to the other two ore samples but with a 6% greater P2O5 recovery. An atypical P2O5

recovery (60.6%) was found in test F-06 for the Pau composite. Test F-06 was repeated in F-07

to improve P2O5 recovery by decreasing the caustic starch dosage by 150 g/t and increasing the

FA2 dosage by 50 g/t. An improvement in P2O5 recovery to 85.0% was found with little impact

on concentrate grade. Test F-07 recovery was similar to that obtained for the other two ore

samples.

0

5

10

15

20

25

30

35

40

45

0 20 40 60 80 100

P2O5 Recovery

P2O

5 G

rade

, %

F-01 (Comp)F-02 (Comp)F-03 (Comp)F-04 (Zone 2)F-05 (Man)F-06 (Pau)F-07 (Pau)

Figure 3: P2O5 Cleaner Concentrate Results

0

5

10

15

20

25

30

0 20 40 60 80 100

Fe2O3 Grade, %

TiO

2 G

rade

, %

F-01 (Comp)F-02 (Comp)F-03 (Comp)F-04 (Zone 2)F-05 (Man)F-06 (Pau)F-07 (Pau)

Magnetic Fraction

Figure 4: TiO2 – Fe2O3 Relationship



6

Figure 4 shows that the TiO2 correlates with the Fe2O3 in assays of the non-magnetic fraction and

it appears both are equally depressed during flotation. This possibly indicates that they are

mineralogically associated. On the magnetic fraction, the TiO2 to Fe2O3 ratio is much less than

the non-magnetic fraction which likely indicates a different mineral assemblage. The Fe2O3 –

TiO2 relationship of the Zone 2 test is different from the other tests. As Zone 2 also gave the

best flotation results, this may indicate a difference in the mineralogy of this sample.

Magnetic separation (WHIMS) was performed on the cleaner concentrate and rougher tailings

from test F-03. Table 7 summarizes the results. The magnetic separation on the cleaner

concentrate did not provide additional upgrading on the concentrate. Insignificant improvements

in grade from 41.0% P2O5 to 41.3% P2O5 and at the expense of 5% P2O5 recovery was found. It

was determined that magnetic separation on the cleaner concentrate was not required. As for the

magnetic separation on the rougher tailings, 75.6% of the TiO2 was recovered in the magnetic

portion at 60% mass of the rougher tailings. Further work is required to develop a methodology

to recover the TiO2. A mineralogical examination of the rougher tailings may help provide

insight on TiO2 liberation and recovery options.

Table 7: Magnetic Separation (WHIMS) Results


g % P2O5 Fe2O3 SiO2 TiO2 CaO S P2O5 Fe2O3 SiO2 TiO2 CaO S

Clnr 3 Conc Mags 2.63 5.64 36.2 6.37 2.67 2.59 48.0 0.33* 4.97 36.2 26.6 72.1 4.91 13.2

Clnr 3 Conc Non-Mags 44.0 94.4 41.3 0.67 0.44 0.060 55.5 0.13* 95.0 63.8 73.4 27.9 95.1 86.8

Head (calc.) 46.6 100.0 41.0 0.99 0.57 0.20 55.1 0.14 100.0 100.0 100.0 100.0 100.0 100.0

(direct) 41.0 0.75 0.47 0.22 55.0 0.04

Ro Tail Mags 36.8 60.2 0.14 35.5 26.8 13.2 1.03 0.42 58.6 71.4 51.2 75.6 33.9 66.5

Ro Tail Non-Mags 24.3 39.8 0.15 21.5 38.7 6.44 3.04 0.32 41.4 28.6 48.8 24.4 66.1 33.5

Head (calc.) 61.1 100.0 0.14 29.9 31.5 10.5 1.83 0.38 100.0 100.0 100.0 100.0 100.0 100.0

(direct) 0.15 33.6 29.3 13.3 1.49 0.38

Product

*Suspect assays – Insufficient mass to re-assay

2.1. Detailed Concentrate Analysis

The 1st cleaner concentrate of test F-04, F-05 and F-07 representing the Zone 2, Man and Pau

composites were submitted for detailed concentrate analyses as shown in

.



7

Table 8: Chemical Analysis of Final Concentrate

Flotation Concentrate Assays

1st Cleaner Concentrate

Test F-04 F-05 F-07 Test F-04 F-05 F-07

Sample Zone 2 Man Pau Sample Zone 2 Man Pau

Mass, % 11.9 16.8 15.2 ICP-Scan

P2O5 % 39.5 38.6 39.9 Co g/t < 20 < 40 < 40

P2O5 Recov, % 91.5 85.0 85.0 Cr g/t 370 200 200

Fe2O3 1.55 3.10 1.98 Cu g/t 30 55 0.007

SiO2 2.21 2.22 1.28 Fe g/t 13000 23000 13000

TiO2 0.19 1.20 0.77 K g/t 1400 260 160

CaO 52.4 51.8 52.5 Li g/t < 10 < 10 < 20

S 0.023 0.086 0.067 Mg g/t 3800 12000 4600

CaO/P2O5 1.33 1.34 1.32 Mn g/t 700 570 490

Cl g/t 938 884 1201 Mo g/t 24 < 20 12

F % 1.53 1.82 1.77 Na g/t 2200 630 1000

U % < 0.002 < 0.002 < 0.002 Ni g/t 200 130 130

Hg g/t < 0.3 < 0.3 < 0.3 P g/t 180000 170000 170000

TOC leco % 0.63 0.1 0.09 Pb g/t 40 < 30 < 50

ICP-Scan Sb g/t < 10 < 10 < 30

Ag g/t < 2 < 2 < 2 Se g/t < 30 < 30 < 30

Al g/t 4300 1400 1400 Sn g/t < 20 < 20 < 20

As g/t < 30 < 30 < 30 Sr g/t 720 840 470

Ba g/t 81 20 12 Ti g/t 1200 7400 4400

Be g/t < 0.03 0.04 < 0.05 Tl g/t < 30 < 30 < 30

Bi g/t < 20 < 20 < 20 V g/t < 4 12 9

Ca g/t 370000 370000 360000 Y g/t 540 410 360

Cd g/t < 2 < 2 < 2 Zn g/t 39 32 0.003



8

Conclusions

Ore samples from three different zones labelled as Zone 2, Man and Pau received from the Lac à

Paul deposit on behalf of Ressources d’Arianne were prepared for flotation testwork.

Composites from the three zones were prepared along with an overall composite by combining

the ore samples from the three zones in equal ratio. The head grades of the composites are

shown below.

Overall Comp Zone 2 Man PauFe2O3 % 33.1 27.1 36.6 32.8

TiO2 % 9.27 4.56 10.4 10.9

P2O5 % 6.92 5.34 7.81 7.34

Flotation testing to attain an apatite concentrate at commercial grade was performed on the

overall, Zone 2, Man and Pau composites. The following were observed:

• Gravity separation of the overall comp was not successful in recovering the illmenite prior to flotation.

• Magnetic separation of the flotation feed reduced the Fe2O3 content by approximately 30% which may otherwise hinder apatite flotation.

• A reagent suite consisting of soda ash (Na2CO3), caustic starch, silicate ‘N’ and FA2 was used in all flotation testing. Pulp pH was maintained at 10.5 with temperature ranging from 25-30ºC.

• Similar P2O5 recovery of 89-96% in the rougher concentrates was obtained for all the composites.

• The best results for the overall comp was provided by test F-03 producing a cleaner concentrate graded 40.1% P2O5 with 86.9% P2O5 recovery.

• Cleaner concentrate results for the Zone 2, Man and Pau composites were similar grading 38-40% P2O5 with 85-92% P2O5 recovery. Zone 2 produced the best cleaner concentrate between the three composites grading 39.5% P2O5 with 91.5% P2O5 recovery.

• Assay results for the magnetic and non-magnetic portions of the flotation feed showed a correlation between TiO2 and Fe2O3, possibly indicating that both are part of the same particle. The correlation of the magnetic portion deviates from the non-magnetic portion which likely indicates different mineral species.

• Magnetic separation of the cleaner concentrate did not provide further upgrading on the concentrate and was determined to be unnecessary.

• Magnetic separation of the rougher tailings showed 75.6% TiO2 recovery in the magnetic portion in 60% of the mass, which is deemed a poor separation for plant use.



9

Appendix A

Flotation Test Results

10

Test No.:F01 Project No.: 12057-001 Operator: Ben Yu Date: November 5, 2008

Purpose: Preliminary test to obtain an apaite flotation concentratewhile removing magnetics and heavy minerals prior to apatite flotation

Procedure: As outlined below. µm

Feed: 2 kg, -10m test charge of Overall composite Ro Tail K80 135

Grind: 30 minutes at 65% solids in the Bench Laboratory Rod Mill µm. Comb. Clnr Prod K80

Conditions:

Reagents added, grams per tonne Time, minutes Soda Caustic FA-2 Silicate Caustic Soda Temp

Stage Ash Starch N' Grind Cond. Froth pH oC

Grind 30

Pass the ground product over the Wilfley table to obtain a heavy mineral concentrateUpgrade the Wilfley concentrate on the Mozley TableCombine the Wilfley tailing and the Mozley tailingUse a hand magnet to remove magnetics and clean magnetics once

Allow the non-magnetics to settle. Decant and filter the solids 5

Repulp the solids to 70-75% solids for conditioning

P2O5 Cond. 1 500 1P2O5 Cond. 2 500 2 10 20P2O5 Cond. 3 500 10

P2O5 Rougher 250 9

P2O5 Cleaner 1 100 2 6 10.5 26P2O5 Cleaner 2 250 2 4 10.5P2O5 Cleaner 3 300 1 drop 2 4.5 9.8P2O5 Cleaner 4 300 1 drop 2 2 9.4 25

P2O5 Rougher 500 500 500 0 250 0 0 30 18 9P2O5 Cleaner 0 350 0 600 0 0 0 0 8 16.5

Total 500 850 500 600 250 0 0 30 26 25.5

Stage RougherFlotation Cell 1000g D1Speed: rpm 1800

Metallurgical Balance

Product Weight Assays g/t, % % Distributiong % P2O5 Fe2O3 SiO2 TiO2 CaO S P2O5 Fe2O3 SiO2 TiO2 CaO S

P2O5 Clnr 4 Conc 172 8.79 39.7 1.31 1.67 0.32 53.9 0.050 50.2 0.34 0.66 0.31 45.4 1.33P2O5 Clnr 4 Tail 122 6.26 33.2 5.09 7.54 1.78 45.2 0.060 29.9 0.95 2.12 1.22 27.1 1.14P2O5 Clnr 3 Tail 139 7.11 6.57 20.4 29.5 6.00 10.5 0.22 6.72 4.33 9.42 4.68 7.16 4.74P2O5 Clnr 2 Tail 327 16.8 2.16 32.0 27.8 9.85 4.35 0.27 5.20 16.0 20.9 18.1 6.99 13.7P2O5 Clnr 1 Tail 504 25.8 0.52 36.3 26.3 14.9 1.68 0.37 1.93 28.0 30.5 42.3 4.16 28.9P2O5 Ro Tail 375 19.2 0.56 29.3 33.4 9.83 2.50 0.43 1.55 16.8 28.9 20.7 4.61 25.0LIMS Magnetics 293 15.0 2.07 70.1 10.9 5.99 3.10 0.50 4.47 31.4 7.35 9.87 4.46 22.7Mozley Grav Conc 1 16.0 0.82 0.27 69.8 3.35 25.3 0.51 0.77 0.032 1.71 0.12 2.27 0.040 1.91Mozley Grav Conc 2 3.56 0.18 0.28 71.7 1.94 26.1 0.41 0.85 0.007 0.39 0.016 0.52 0.007 0.47Head (calc.) 1951 100.0 6.95 33.5 22.3 9.11 10.4 0.33 100.0 100.0 100.0 100.0 100.0 100.0 (direct) 6.92 33.1 22.5 9.27

Combined Products

P2O5 Clnr 4 Conc 8.79 39.7 1.31 1.67 0.32 53.9 0.050 50.2 0.34 0.66 0.31 45.4 1.33P2O5 Clnr 3 Conc 15.1 37.0 2.88 4.11 0.93 50.3 0.054 80.1 1.30 2.78 1.53 72.6 2.47P2O5 Clnr 2 Conc 22.2 27.2 8.50 12.3 2.55 37.5 0.11 86.8 5.63 12.2 6.22 79.7 7.21P2O5 Clnr 1 Conc 38.9 16.4 18.6 18.9 5.69 23.2 0.18 92.0 21.6 33.1 24.3 86.7 20.9P2O5 Rougher Conc 64.8 10.1 25.7 21.9 9.37 14.6 0.25 93.9 49.7 63.7 66.6 90.9 49.9P2O5 Float Feed 84.0 7.91 26.5 24.5 9.47 11.9 0.29 95.5 66.5 92.5 87.3 95.5 74.9Grav + Magn Conc 16.0 1.96 70.1 10.4 7.21 2.94 0.52 4.51 33.5 7.49 12.7 4.51 25.1

Product Assays g/t, %SiO2 % Al2O3 % Fe2O3 % MgO % CaO % Na2O % K2O % TiO2 % P2O5 % MnO % Cr2O3 % V2O5 % LOI % Sum %

P2O5 Clnr 4 Conc 1.67 0.46 1.31 0.77 53.9 0.19 0.080 0.32 39.7 0.070 < 0.01 < 0.01 0.89 99.4P2O5 Clnr 4 Tail 7.54 2.31 5.09 2.60 45.2 0.58 0.55 1.78 33.2 0.090 < 0.01 < 0.01 0.79 99.7P2O5 Clnr 3 Tail 29.5 8.90 20.4 11.0 10.5 1.56 1.58 6.00 6.57 0.22 0.01 0.01 2.27 98.5P2O5 Clnr 2 Tail 27.8 5.20 32.0 15.5 4.35 0.67 0.40 9.85 2.16 0.39 0.01 < 0.01 0.50 98.8P2O5 Clnr 1 Tail 26.3 3.81 36.3 15.7 1.68 0.59 0.19 14.9 0.52 0.39 < 0.01 < 0.01 -0.64 99.8P2O5 Ro Tail 33.4 6.97 29.3 14.3 2.50 1.72 0.42 9.83 0.56 0.32 0.01 < 0.01 0.72 100.0LIMS Magnetics 10.9 2.24 70.1 6.13 3.10 0.14 0.12 5.99 2.07 0.24 0.19 0.50 -1.12 101Mozley Grav Conc 1 3.4 1.05 69.8 3.20 0.51 0.04 0.02 25.30 0.27 0.36 0.17 0.35 -3.19 101Mozley Grav Conc 2 1.94 1.00 71.7 2.35 0.41 < 0.01 < 0.01 26.100 0.28 0.35 0.080 0.40 -3.260 101

1st-3rd Clnr 4th Clnr500g D1

15001000g D1

1800

11


Purpose: Repeat Test F01, but use a lower dose of collector and include regrindingFor this test, omit the heavy mineral separation.


Feed: 2 kg, -10m test charge of Overall composite Ro Tail K80 130

Grind: 30 minutes at 65% solids in the Bench Laboratory Rod Mill µm. Comb. Clnr Prod K80 67

Conditions:

Reagents added, grams per tonne Time, minutes Soda Caustic FA-2 Silicate NaOH Temp


Grind 30

Use a hand magnet to remove magnetics and clean magnetics once



P2O5 Cond. 1 500 1 10 19P2O5 Cond. 2 750 2 11 18P2O5 Cond. 3 200 10 10.5 24P2O5 Cond. 4 to pH 1 10.5 30

P2O5 Rougher to pH 8 10.5 30

P2O5 Cleaner 1 100 to pH 2 4.5 10.5 25

Decant Rougher Conc for regrindingP2O5 Regrind (SSRM) 2

P2O5 Cleaner 2 200 to pH 2 3.5 10.5 20P2O5 Cleaner 3 300 to pH 2 3 10.5 20

P2O5 Cleaner 3 Scav 100 2 2 10.5 20


Total 500 1050 300 300 0 0 0 32 27 21

Stage Rougher Issue P2O5 Ro tail for PSAFlotation Cell Issue Comb Cleaner Products for PSASpeed: rpm

Use warm water adjusted to pH=10.5 throughout the testMetallurgical Balance


F02 3rd Cl Conc 24.1 1.22 34.9 4.93 4.92 1.08 47.8 0.13 6.36 0.18 0.26 0.15 5.73 0.43F02 3rd Cl Scav Conc 64.1 3.25 38.7 2.00 1.88 0.55 53.1 0.070 18.8 0.19 0.26 0.20 16.9 0.61F02 3rd Cl Scav Tl 47.2 2.39 31.4 7.53 7.82 2.25 43.1 0.13 11.2 0.54 0.80 0.61 10.1 0.84F02 2nd Cl Tl 240 12.2 31.3 8.51 6.74 2.96 42.9 0.15 56.8 3.08 3.52 4.09 51.1 4.90F02 1st Cl Tl 432 21.9 0.82 33.1 30.1 9.73 2.67 0.38 2.68 21.6 28.3 24.2 5.73 22.4F02 Ro Tl 902 45.7 0.13 33.4 31.0 12.0 1.60 0.41 0.89 45.5 61.0 62.3 7.17 50.4F02 Mag Cl Conc 263 13.4 1.65 73.0 10.2 5.56 2.45 0.57 3.29 29.0 5.86 8.43 3.21 20.5

Head (calc.) 1972 100.0 6.70 33.6 23.3 8.81 10.2 0.37 100.0 100.0 100.0 100.0 100.0 100.0 (direct) 6.92 33.1 22.5 9.27

Combined Products

Clnr 3 Conc 1.22 34.9 4.93 4.92 1.08 47.8 0.13 6.36 0.18 0.26 0.15 5.73 0.43Clnr 3 + Scav Conc 4.47 37.7 2.80 2.71 0.69 51.7 0.086 25.1 0.37 0.52 0.35 22.6 1.04Clnr 2 Conc 6.87 35.5 4.45 4.49 1.24 48.7 0.10 36.4 0.91 1.33 0.96 32.8 1.88Clnr 1 Conc 19.0 32.8 7.04 5.93 2.34 45.0 0.13 93.1 3.99 4.85 5.05 83.9 6.78Rougher Conc 40.9 15.7 21.0 18.9 6.29 22.3 0.26 95.8 25.5 33.2 29.2 89.6 29.1Float Feed 86.6 7.48 27.5 25.3 9.31 11.4 0.34 96.7 71.0 94.1 91.6 96.8 79.5F02 Mag Cl Conc 13.4 1.65 73.0 10.2 5.56 2.45 0.57 3.29 29.0 5.86 8.43 3.21 20.5


F02 3rd Cl Conc 4.92 0.96 4.93 2.25 47.8 0.25 0.070 1.08 34.9 0.090 0.02 < 0.01 1.90 99.2F02 3rd Cl Scav Conc 1.88 0.37 2.00 0.99 53.1 0.13 0.03 0.55 38.7 0.060 < 0.01 < 0.01 0.87 98.7F02 3rd Cl Scav Tl 7.8 1.69 7.5 3.6 43.1 0.37 0.15 2.25 31.40 0.13 0.03 0.01 0.93 99.1F02 2nd Cl Tl 6.7 1.31 8.5 3.8 42.90 0.24 0.14 2.96 31.30 0.13 0.03 < 0.01 0.70 98.8F02 1st Cl Tl 30.1 6.29 33.1 16.2 2.67 0.89 0.71 9.7 0.82 0.39 0.02 0.05 -1.12 99.8F02 Ro Tl 31.0 6.09 33.4 14.9 1.60 1.30 0.48 12.00 0.13 0.36 0.01 0.04 -0.47 100.8F02 Mag Cl Conc 10.2 2.19 73.0 5.86 2.45 0.11 0.13 5.56 1.65 0.23 0.13 0.56 -1.26 101

3rd Clnr250g D1

1200

1st Clnr 2nd Clnr1000g D1 500g D11000g D1

1800 1800 1500

12


Purpose: Repeat Test F02, but further reduce collectorAdd collector to cleaners


Feed: 2 kg, -10m test charge of Overall composite Ro Tail K80


Conditions:



Grind 30






P2O5 Cleaner 1 100 to pH 2 2 10.5 28

Decant Rougher Conc for regrindingP2O5 Regrind (SSRM) 100 3

P2O5 Cleaner 2 100 100 to pH 2 4.5 10.5 22P2O5 Cleaner 3 50 50 to pH 2 3 10.5 24


Total 500 1000 200 150 0 0 0 33 25 13.5




F03 3rd Cl Conc 259 13.2 41.0 0.75 0.47 0.22 55.0 0.040 80.6 0.29 0.28 0.31 72.1 1.55F03 3rd Cl Tl 26.7 1.36 31.3 8.31 6.16 3.33 43.2 0.18 6.33 0.33 0.38 0.48 5.83 0.72F03 2nd Cl Tl 44.6 2.28 6.63 29.2 22.0 11.1 10.5 0.43 2.24 1.96 2.27 2.66 2.37 2.87F03 1st Cl Tl 287 14.7 1.81 30.6 28.8 8.81 4.33 0.30 3.94 13.2 19.1 13.6 6.28 12.9F03 Ro Tl 1020 52.0 0.15 33.6 29.3 13.3 1.49 0.38 1.16 51.6 69.1 72.8 7.68 57.9F03 Mag Cl Conc 322 16.4 2.36 67.2 11.9 5.86 3.54 0.50 5.76 32.6 8.86 10.1 5.76 24.1

Head (calc.) 1959 100.0 6.73 33.9 22.1 9.50 10.1 0.34 100.0 100.0 100.0 100.0 100.0 100.0 (direct) 6.92 33.1 22.5 9.27

Combined Products

Clnr 3 Conc 13.2 41.0 0.75 0.47 0.22 55.0 0.040 80.6 0.29 0.28 0.31 72.1 1.55Clnr 2 Conc 14.6 40.1 1.46 1.00 0.51 53.9 0.053 86.9 0.63 0.66 0.78 77.9 2.27Clnr 1 Conc 16.9 35.6 5.20 3.83 1.94 48.0 0.10 89.1 2.59 2.93 3.44 80.3 5.14Rougher Conc 31.5 19.9 17.0 15.4 5.13 27.7 0.20 93.1 15.8 22.1 17.0 86.6 18.0Float Feed 83.6 7.60 27.3 24.1 10.2 11.4 0.31 94.2 67.4 91.1 89.9 94.2 75.9F03 Mag Cl Conc 16.4 2.36 67.2 11.9 5.86 3.54 0.50 5.76 32.6 8.86 10.1 5.76 24.1


F03 3rd Cl Conc 0.47 0.07 0.75 0.39 55.0 0.06 < 0.01 0.22 41.0 0.050 < 0.01 < 0.01 0.57 98.6F03 3rd Cl Tl 6.16 1.29 8.31 3.64 43.2 0.22 0.10 3.33 31.3 0.130 0.05 0.02 1.04 98.8F03 2nd Cl Tl 22.0 4.46 29.2 12.7 10.5 0.58 0.34 11.10 6.63 0.36 0.14 0.03 1.34 99.4F03 1st Cl Tl 28.8 6.31 30.6 15.9 4.33 0.79 0.53 8.81 1.81 0.40 < 0.01 0.02 1.72 100.1F03 Ro Tl 29.3 5.54 33.6 15.0 1.49 1.12 0.49 13.3 0.15 0.36 < 0.01 0.03 -0.39 100.0F03 Mag Cl Conc 11.9 2.54 67.2 6.80 3.54 0.20 0.18 5.86 2.36 0.25 0.11 0.49 -0.85 101

M-01 WHIMS Separation of Clnr 3 Float Concentrate


Clnr 3 Conc Mags 2.63 5.64 36.2 6.37 2.67 2.59 48.0 0.33 4.97 36.2 26.6 72.1 4.91 13.2Clnr 3 Conc Non-Mags 44.0 94.4 41.3 0.67 0.44 0.060 55.5 0.13 95.0 63.8 73.4 27.9 95.1 86.8

Head (calc.) 46.6 100.0 41.0 0.99 0.57 0.20 55.1 0.14 100.0 100.0 100.0 100.0 100.0 100.0 (direct) 41.0 0.75 0.47 0.22 55.0 0.040Suspect assays - Insufficient mass to re-assayProduct Assays g/t, %

SiO2 % Al2O3 % Fe2O3 % MgO % CaO % Na2O % K2O % TiO2 % P2O5 % MnO % Cr2O3 % V2O5 % LOI % Sum %

Clnr 3 Conc Mags 2.67 0.44 6.37 1.64 48.0 0.13 0.030 2.59 36.2 0.090 0.02 0.01 1.11 99.3Clnr 3 Conc Nob-Mags 0.44 0.05 0.67 0.38 55.5 0.13 < 0.01 0.06 41.3 0.020 < 0.01 < 0.01 0.45 99.0

1000g D11800 1800 1500

1st Clnr 2nd-3rd Clnr1000g D1 500g D1

13


Purpose: Repeat Test F03 with the Zone 2 OreAdd collector to cleaners


Feed: 2 kg, -10m test charge of Zone 2 Sample Ro Tail K80 133


Conditions:



Grind 30




P2O5 Cond. 1 500 1 10.3 23P2O5 Cond. 2 750 2 11.5 25P2O5 Cond. 3 100 10 11.3 25P2O5 Cond. 4 to pH 1 10.7 29


P2O5 Cleaner 1 100 to pH 2 2 10.7 28


P2O5 Cleaner 2 100 100 to pH 2 4.5 10.5 21


Total 500 950 200 100 0 0 0 33 23 10.5




F04 2nd Cl Conc 129 6.61 41.1 0.70 1.17 0.070 54.2 0.010 52.7 0.17 0.23 0.11 37.4 0.23F04 2nd Cl Tail 104 5.33 37.5 2.60 3.50 0.33 50.2 0.040 38.7 0.52 0.55 0.42 27.9 0.76F04 1st Cl Tail 90.1 4.62 4.11 21.0 35.7 3.84 9.92 0.24 3.68 3.63 4.85 4.24 4.78 3.94F04 Ro Tail 1365 70.0 0.24 23.8 41.6 5.27 3.84 0.30 3.26 62.4 85.7 88.2 28.0 74.5F04 Mag Cl Conc 262 13.4 0.61 66.1 21.9 2.19 1.39 0.43 1.59 33.3 8.67 7.04 1.95 20.5

Head (calc.) 1951 100.0 5.16 26.7 34.0 4.18 9.59 0.28 100.0 100.0 100.0 100.0 100.0 100.0 (direct) 6.92 33.1 22.5 9.27

Combined Products

Clnr 2 Conc 6.61 41.1 0.70 1.17 0.070 54.2 0.010 52.7 0.17 0.23 0.11 37.4 0.23Clnr 1 Conc 11.9 39.5 1.55 2.21 0.19 52.4 0.023 91.5 0.69 0.78 0.53 65.3 0.99Rougher Conc 16.6 29.6 6.97 11.6 1.21 40.6 0.084 95.2 4.32 5.63 4.77 70.0 4.93Float Feed 86.6 5.86 20.6 35.9 4.49 10.9 0.26 98.4 66.7 91.3 93.0 98.1 79.5F04 Mag Cl Conc 13.4 0.61 66.1 21.9 2.19 1.39 0.43 1.59 33.3 8.67 7.04 1.95 20.5


F04 2nd Cl Conc 1.17 0.33 0.70 0.28 54.2 0.21 0.100 0.07 41.1 0.070 0.05 < 0.01 1.21 99.5F04 2nd Cl Tail 3.50 1.04 2.60 0.82 50.2 0.27 0.21 0.33 37.5 0.100 0.14 < 0.01 1.56 98.3F04 1st Cl Tail 35.7 11.50 21.0 6.6 9.9 2.50 1.62 3.84 4.11 0.31 0.01 < 0.01 1.77 98.9F04 Ro Tail 41.6 13.30 23.8 6.5 3.84 3.14 1.34 5.27 0.24 0.35 < 0.01 0.01 -0.11 99.2F04 Mag Cl Conc 21.9 2.88 66.1 6.81 1.39 0.38 0.25 2.19 0.61 0.34 0.15 0.09 -2.02 101

1st Clnr 2nd Clnr1000g D1 500g D11000g D1

1800 1800 1500

14


Purpose: Repeat Test F03 with the MAN SampleAdd collector to cleaners


Feed: 2 kg, -10m test charge of Man Sample Ro Tail K80 101


Conditions:



Grind 30






P2O5 Cleaner 1 100 to pH 2 2 10.5 28




Total 500 1000 200 150 0 0 0 33 25 13.5




F05 - 3rd Cl Conc 93.9 4.84 41.9 0.47 0.32 0.11 56.3 0.11 26.5 0.061 0.087 0.052 25.9 1.19F05 - 3rd Cl Tl 140 7.23 41.4 1.02 0.70 0.36 55.3 0.040 39.2 0.20 0.29 0.25 38.1 0.65F05 - 2nd Cl Tl 92.5 4.77 31.0 8.91 6.44 3.59 41.8 0.13 19.3 1.15 1.73 1.66 19.0 1.39F05 - 1st Cl Tl 238 12.3 3.39 29.0 25.2 9.65 5.45 0.42 5.45 9.62 17.4 11.5 6.37 11.5F05 - Ro Tls 962 49.5 0.22 36.8 25.1 15.1 0.52 0.48 1.43 49.3 70.1 72.6 2.45 53.2F05 - Mag Cl Conc 414 21.3 2.90 68.9 8.59 6.75 4.06 0.67 8.09 39.7 10.3 14.0 8.24 32.0

Head (calc.) 1941 100.0 7.64 37.0 17.7 10.3 10.5 0.45 100.0 100.0 100.0 100.0 100.0 100.0 (direct) 6.92 33.1 22.5 9.27

Combined Products

Clnr 3 Conc 4.84 41.9 0.47 0.32 0.11 56.3 0.11 26.5 0.061 0.087 0.052 25.9 1.19Clnr 2 Conc 12.1 41.6 0.80 0.55 0.26 55.7 0.068 65.7 0.26 0.37 0.30 64.0 1.84Clnr 1 Conc 16.8 38.6 3.10 2.22 1.20 51.8 0.086 85.0 1.41 2.10 1.96 82.9 3.23Rougher Conc 29.1 23.8 14.0 11.9 4.76 32.2 0.23 90.5 11.0 19.6 13.5 89.3 14.8Float Feed 78.7 8.93 28.4 20.2 11.3 12.3 0.39 91.9 60.3 89.7 86.0 91.8 68.0F05 - Mag Cl Conc 21.3 2.90 68.9 8.59 6.75 4.06 0.67 8.09 39.7 10.3 14.0 8.24 32.0


F05 - 3rd Cl Conc 0.32 0.02 0.47 0.31 56.3 0.04 < 0.01 0.11 41.9 0.040 < 0.01 < 0.01 0.28 99.7F05 - 3rd Cl Tl 0.70 0.04 1.02 0.59 55.3 0.04 < 0.01 0.36 41.4 0.050 < 0.01 < 0.01 0.30 99.8F05 - 2nd Cl Tl 6.4 0.72 8.9 4.9 41.8 0.08 0.07 3.59 31.00 0.13 0.08 0.02 1.49 99.3F05 - 1st Cl Tl 25.2 3.39 29.0 18.6 5.45 0.27 0.47 9.65 3.39 0.35 0.01 0.03 3.93 99.8F05 - Ro Tls 25.1 2.28 36.8 19.2 0.52 0.16 0.27 15.1 0.22 0.41 < 0.01 0.03 0.76 100.9F05 - Mag Cl Conc 8.6 1.72 68.9 6.86 4.06 0.03 0.09 6.75 2.90 0.23 0.11 0.57 -0.21 101

1000g D11800 1800 1500


15


Purpose: Repeat Test F03 with the Pau OreAdd collector to cleaners


Feed: 2 kg, -10m test charge of Pau Sample Ro Tail K80 117


Conditions:



Grind 30




P2O5 Cond. 1 500 1 10+11.5 21P2O5 Cond. 2 750 2 11 23P2O5 Cond. 3 100 10 10.5 23P2O5 Cond. 4 to pH 1 10.5 29


P2O5 Cleaner 1 100 to pH 2 2 10.5 28


P2O5 Cleaner 2 100 100 to pH 2 4.5 10.5 26


Total 500 950 200 100 0 0 0 33 23 10.5




F06 2nd Cl Conc 78.4 3.95 42.1 0.79 0.59 0.20 54.2 0.040 23.2 0.094 0.11 0.076 20.1 0.62F06 2nd Cl Tail 137 6.89 39.1 2.22 1.49 0.78 51.9 0.050 37.5 0.46 0.48 0.51 33.5 1.35F06 1st Cl Tail 180 9.07 24.4 13.4 11.7 5.24 33.0 0.14 30.8 3.64 5.01 4.54 28.1 4.96F06 Ro Tail 1320 66.5 0.44 33.6 28.4 13.3 2.29 0.26 4.07 67.0 89.3 84.6 14.3 67.6F06 Mag Cl Conc 269 13.6 2.39 70.9 8.03 7.95 3.17 0.48 4.51 28.8 5.14 10.3 4.03 25.4

Head (calc.) 1983 100.0 7.19 33.4 21.2 10.5 10.7 0.26 100.0 100.0 100.0 100.0 100.0 100.0 (direct) 6.92 33.1 22.5 9.27

Combined Products

Clnr 2 Conc 3.95 42.1 0.79 0.59 0.20 54.2 0.040 23.2 0.094 0.11 0.076 20.1 0.62Clnr 1 Conc 10.8 40.2 1.70 1.16 0.57 52.7 0.046 60.6 0.55 0.59 0.59 53.6 1.96Rougher Conc 19.9 33.0 7.03 5.96 2.70 43.7 0.089 91.4 4.19 5.61 5.13 81.7 6.93Float Feed 86.4 7.94 27.5 23.2 10.9 11.8 0.22 95.5 71.2 94.9 89.7 96.0 74.6F06 Mag Cl Conc 13.6 2.39 70.9 8.03 7.95 3.17 0.48 4.51 28.8 5.14 10.3 4.03 25.4


F06 2nd Cl Conc 0.59 0.11 0.79 0.40 54.2 0.09 < 0.01 0.20 42.1 0.060 0.02 < 0.01 1.18 99.8F06 2nd Cl Tail 1.49 0.31 2.22 0.94 51.9 0.12 0.01 0.78 39.1 0.070 0.08 < 0.01 0.77 97.8F06 1st Cl Tail 11.7 2.36 13.4 6.8 33.0 0.43 0.15 5.24 24.4 0.16 0.04 0.02 0.62 98.3F06 Ro Tail 28.4 5.45 33.6 16.7 2.29 0.92 0.28 13.30 0.44 0.34 0.01 0.04 -1.17 100.5F06 Mag Cl Conc 8.0 2.60 70.9 6.0 3.17 0.12 0.07 7.95 2.39 0.22 0.20 0.65 -1.81 100.4

1000g D11800 1800 1500


16

Test No.:F07 Project No.: 12057-001 Operator: Ben Yu Date: December 22, 2008

Purpose: Repeat Test F06 with the Pau OreIncrease collector and decrease depressant in the cleaners to improve recovery


Feed: 2 kg, -10m test charge of Pau Sample Ro Tail K80 114


Conditions:



Grind 30




P2O5 Cond. 1 500 1P2O5 Cond. 2 750 2P2O5 Cond. 3 100 10 10.6 26P2O5 Cond. 4 to pH 1 10.5 30


Minimise water use in rougher froth collection to allow collector conditioning at high densityCleaner Conditioner 50 5 10.5 25

P2O5 Cleaner 1 0 to pH 4 10.5 29




Total 500 850 250 100 0 0 0 33 28 15.5




F07 - 3rd Cl Conc 58.7 2.99 41.5 0.71 0.38 0.21 54.4 0.020 17.3 0.063 0.054 0.057 15.4 0.25F07 - 3rd Cl Tail 137 6.95 41.0 1.19 0.65 0.39 53.8 0.040 39.9 0.25 0.22 0.25 35.5 1.17F07 - 2nd Cl Tail 104 5.28 37.6 3.74 2.61 1.58 49.8 0.13 27.8 0.59 0.66 0.76 25.0 2.88F07 - 1st Cl Tail 74.3 3.78 6.91 26.9 23.9 10.7 10.8 0.22 3.66 3.04 4.31 3.67 3.88 3.49F07 - Ro Tail 1321 67.2 0.71 33.3 28.0 13.8 2.46 0.21 6.68 66.9 89.7 84.1 15.7 59.2F07 - Mag Cl Conc 271 13.8 2.44 70.8 7.68 8.99 3.48 0.57 4.70 29.2 5.04 11.2 4.55 33.0

Head (calc.) 1965 100.0 7.15 33.5 21.0 11.0 10.5 0.24 100.0 100.0 100.0 100.0 100.0 100.0 (direct) 6.92 33.1 22.5 9.27

Combined Products

Clnr 3 Conc 2.99 41.5 0.71 0.38 0.21 54.4 0.020 17.3 0.063 0.054 0.057 15.4 0.25Clnr 2 Conc 9.93 41.2 1.05 0.57 0.34 54.0 0.034 57.2 0.31 0.27 0.30 50.9 1.42Clnr 1 Conc 15.2 39.9 1.98 1.28 0.77 52.5 0.067 85.0 0.90 0.93 1.06 75.9 4.30Rougher Conc 19.0 33.3 6.94 5.78 2.74 44.2 0.098 88.6 3.94 5.23 4.72 79.7 7.79Float Feed 86.2 7.90 27.5 23.1 11.4 11.7 0.19 95.3 70.8 95.0 88.8 95.4 67.0F07 - Mag Cl Conc 13.8 2.44 70.8 7.68 8.99 3.48 0.57 4.70 29.2 5.04 11.2 4.55 33.0


F07 - 3rd Cl Conc 0.38 0.05 0.71 0.38 54.4 0.19 < 0.01 0.21 41.5 0.070 0.01 < 0.01 0.26 98.2F07 - 3rd Cl Tail 0.65 0.08 1.19 0.52 53.8 0.17 0.01 0.39 41.0 0.050 0.02 < 0.01 0.34 98.1F07 - 2nd Cl Tail 2.6 0.53 3.7 1.6 49.8 0.25 0.03 1.58 37.6 0.09 0.07 < 0.01 0.40 98.3F07 - 1st Cl Tail 23.9 4.97 26.9 14.5 10.80 0.64 0.37 10.70 6.91 0.31 0.02 0.05 0.61 100.7F07 - Ro Tail 28.0 5.40 33.3 17.2 2.46 0.71 0.26 13.80 0.71 0.38 < 0.01 0.04 -1.39 100.8F07 - Mag Cl Conc 7.68 2.45 70.8 6.12 3.48 < 0.01 0.060 8.990 2.44 0.24 0.240 0.64 -1.850 101

1st Clnr 2nd-3rd Clnr1000g D1 500g D11000g D1

1800 1800 1500

17

Test No.:M-02 Project No.: 12057-001 Operator: Ben Yu Date: November 28, 2008

WHIMS Separation of flotation tails for the recovery of TiO2

Product: F-03 Rougher Flotation TailWHIMS Eriez Lab Unit at 20,000 Gauss

WHIMS Separation


Ro Tail Mags 36.80 60.23 0.14 35.5 26.8 13.2 1.03 0.42 58.57 71.4 51.2 75.6 33.91 66.5Ro Tail Non-Mags 24.3 39.8 0.15 21.5 38.7 6.44 3.04 0.32 41.4 28.6 48.8 24.4 66.1 33.5

Head (calc.) 61.1 100.0 0.1 29.93 31.53 10.51 1.8 0.38 100.0 100.0 100.0 100.0 100.0 100.0 (direct) 0.15 33.6 29.3 13.3 1.49 0.38Suspect assays - Insufficient mass to re-assayProduct Assays g/t, %

SiO2 % Al2O3 % Fe2O3 % MgO % CaO % Na2O % K2O % TiO2 % P2O5 % MnO % Cr2O3 % V2O5 % LOI % Sum %

Ro Tail Mags 26.8 3.94 35.5 16.6 1.03 0.63 0.51 13.2 0.14 0.39 < 0.01 0.060 -0.35 98.4Ro Tail Non-Mags 38.7 11.2 21.5 11.6 3.04 3.02 0.75 6.44 0.15 0.23 < 0.01 0.030 0.35 97.1

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