Mineral Resources

July 17, 2012 - Rovina Valley Project, NI 43-101 Mineral Resource Estimate Update

Mineral Resource

Category & Zone

Tonnage (Mt)

Au (g/t)

Cu (%)

Gold (Moz)

Copper (Mlb)

Au eq* (Moz)

 

Measured

Rovina (open-pit)

31.8

0.36

0.30

0.37

209.0

0.91

Colnic (open-pit)

29.4

0.64

0.12

0.61

75.0

0.80

Ciresata (underground)

29.7

0.86

0.16

0.82

105.0

1.09

Total Measured

90.9

0.62

0.19

1.81

389.0

2.80

 

Indicated

Rovina (open-pit)

73.5

0.27

0.23

0.64

370.0

1.59

Colnic (open-pit)

106.3

0.47

0.10

1.59

226.0

2.18

Ciresata (underground)

135.1

0.72

0.15

3.15

435.0

4.26

Total Indicated

315.0

0.53

0.15

5.38

1,031.0

8.03

 

Total Measured + Indicated

405.9

0.55

0.16

7.19

1,420.0

10.84

Notes: AuEq determined by using a gold price of US$1,370/oz and a copper price of US$3.52/lb. These prices are the three-year trailing average as of July 10, 2012. Metallurgical recoveries are not taken into account for AuEq. Base case cut-off used in the table are 0.35 g/t AuEq for the Colnic deposit and 0.25% CuEq for the Rovina deposit, both of which are amenable to open-pit mining and 0.65 g/t AuEq for the Ciresata deposit which is amenable to underground bulk mining. For the Rovina and Colnic porphyries, the resource is an in-pit resource derived from a Whittle Shell Model using gross metal values of $1,350/oz Au price and $3.00/lb Cu price, net of payable amounts after smelter charges and royalty for net values of US$1,313/oz Au and US$2.57/lb Cu for Rovina and US$2.27/Ib Cu for Colnic). Rounding of tonnes as required by reporting guidelines may result in apparent differences between tonnes, grade, and contained metal content.

Regional Geology

On a regional level, the majority of the mineral deposits in the Romanian/Hungarian region are located in the Carpathian Fold Belt; an arcuate orogenic belt which is part of a much larger belt extending westward into Austria and Switzerland and south into Serbia and Bulgaria. These belts developed during the late Cretaceous and Tertiary, following closure of the Tethys Ocean, due to the collision of continental fragments of Gondwana with continental Europe and the related subduction of small, intervening oceanic basins. The development of the Carpathian Fold Belt was accompanied by widespread igneous activity including a suite of late Cretaceous to early Eocene acidic to intermediate intrusive and extrusive rocks, known as “banatites.” These rocks are believed to have formed early stages of subduction and are host to several Cu–Mo–Fe Porphyry and skarn deposits.

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