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In 1996 Western
Mining reported a remaining measured and indicated
resource of 1.45 million tonnes at an average
grade of 1.13 grams of gold per tonne, plus an
additional inferred resource of 0.4 million tonnes
at a grade of 1.85 grams of gold per tonne.
The reported resource represents unmined disseminated
zones only and excludes consideration of the high-grade
intersections from deeper exploration holes as
well as deeper mineralization underlying or adjoining
the previously mined pits. A significant
amount of work was conducted by previous owners
to establish the contained gold on the property
in conjunction with the active mining operation.
Industry standard methods were used for sampling
and assaying and the resource models derived from
this work preformed successfully during mining
operations. Mr. Threlkeld has concluded
the work performed by previous owners is reliable
and adequate for establishing the degree of confidence
necessary for estimating and classifying a mineral
resource according to NI 43-101.
Mr. Threlkeld considers historical resource estimates
of Western Mining disclosed above are relevant.
Mr. Threlkeld considers the estimates to be reliable,
particularly in light of the reputation of the
corporation that prepared them and the historical
performance of the resource estimates during mining.
Mr. Threlkeld has concluded that the definitions
of “measured resource”, “indicated
resource” and “inferred resource”
used by Western Mining when calculating resources
are materially identical to the definitions of
those terms in NI 43-101.
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