Technical Reports

Qualified Person Status

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

43-101 F1 Technical Reports

Basic technical reports, written to meet NI 43-101 Form 1, provide a summary of a property suitable for filing with stock markets and distribution to prospective investors. These reports cover aspects of the property such as its geology, history, and ownership status, and can include the results of a resource/reserve estimate. MineTech staff have extensive experience with the 43-101 standard and the report submission process.

Basic technical reports generally cost between $US20,000 and $US40,000. Independent technical reports are required for a number of transactions on stock markets such as the TSX and TSX-V.

In 2009, MineTech was commissioned to write a Geological Report on a gold property in Nova Scotia, Canada. The report is being used as a supporting document for a qualifying transaction on the TSX-V.

Feasibility Studies

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

There are three basic levels of Feasibility Studies:

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

In 2005-2006, MineTech, along with sub-contractors, prepared a feasibility study on the Scotia Mine, a past-producing lead-zinc mine in Nova Scotia owned by ScoZinc Limited. The study covered re-opening the former underground mine as an open pit mine.

Valuation Reports

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

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

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

In 2009, Bacanora Minerals Limited commissioned MineTech to write a Property Report and a Valuation Report on their Borate deposit in northern Mexico as part of their Qualifying Transaction on the TSX-V.