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November 13, 2014 --- Vol. 08, No. 46November 2014

Yukon Territory

NICKEL/IRON – First Point Minerals Corp. Nov. 13 reported results from its first diamond drilling campaign at its Mich nickel-iron alloy (awaruite) property, located 55 kilometers (34 miles) southeast of Whitehorse in southern Yukon Territory. Results include 156 meters averaging a grade of 0.096 percent Davis Tube magnetically-recovered nickel from 3.0-159.1 meters in hole 1, and 453.6 meters averaging 0.087 percent DTR nickel from 2.7-456.3 meters in hole 2. “The results from this first drill program at Mich provide encouraging confirmation of the project’s potential to host a significant nickel-iron alloy mineralized system,” said Dr. Ron Britten, First Point’s vice president of exploration. “We drilled two holes into one section across a 5.5-kilometre-long geophysical magnetic high target, partially delineated by detailed mapping and rock sampling, and pulled long intercepts of DTR nickel exceeding a 0.06 percent cut-off grade, with grades increasing to 0.123 percent at the bottom of hole 2.” The Mich claims cover 2,006 hectares and are underlain by serpentinized ultramafic rocks of the Cache Creek Terrane, the same belt of rocks that host the awaruite mineralization at First Point’s 40 percent-owned Decar project in central British Columbia. The Mich property lies just 18 kilometers off the Alaska Highway and 200 kilometers by road from the port of Skagway, Alaska. It is accessible by an all-terrain vehicle trail.

ADVISOR – Rockhaven Resources Ltd. Nov. 13 reported the appointment of Jeremy Richards, Ph.D., P.Geol as a technical advisor. Richards will manage research focused on studying and classifying the mineralization and deposit style at Rockhaven’s Klaza gold-silver project located in central Yukon Territory. “Rockhaven is very pleased to add Dr. Richards, an acknowledged expert on porphyry and epithermal gold deposits, to Rockhaven’s technical team,” said Rockhaven CEO Matt Turner. “Under his guidance, detailed analytical studies have commenced, which will assist in targeting high-grade gold and silver mineralization in future programs. Rockhaven plans aggressive exploration at Klaza in 2015 to follow up its highly successful 2014 results.” Richards is a professor of economic geology at the University of Alberta, and is a registered professional geologist in Alberta. He received a bachelor’s degree in geology from Cambridge University in 1983, a master’s degree from the University of Toronto in 1986, and a doctorate degree from the Australian National University in 1990. He was appointed as lecturer at the University of Leicester, UK, in 1992, and joined the University of Alberta in 1997. Rockhaven has granted 100,000 incentive stock options to Richards, which are exercisable at C25 cents per share for a period of five years. These options are subject to vesting provisions under which 25 percent of the options will vest at the conclusion of each three months during the first year of the exercise period.

GOLD – Golden Predator Mining Corp. Nov. 12 reported results of a preliminary economic assessment for the company’s Brewery Creek gold project. The net present value of the project ranges from US$18.1 million at US$1,150 gold to US$114.5 million at US$1,500 gold, with internal rates of return ranging from 12-45 percent with corresponding gold prices; these scenarios are pre-tax and assume a 5 percent discount rate. Total life of mine capital is estimated to be C$89.4 million, which includes initial capital, sustaining capital, indirect costs and owner costs. “We are happy to have our belief regarding the potential economics of re-opening the Brewery Creek mine confirmed by this study. Having a project with truly modest Cap-ex and a break-even point around US$1,100 gold provides us with a quality asset with only a minimal revival in the price of gold,” said Golden Predator CEO Janet Lee-Sheriff. “The compelling low start-up cost, along with the untapped exploration potential of the project should make this an attractive opportunity for a prospective joint venture candidate.” The PEA evaluated the economics of resuming mining at Brewery Creek through a combination of open pit mining and reprocessing former heap leach material for gold recovery to doré. The study was prepared by Tetra Tech EBA Inc. in cooperation with Tetra Tech Inc. of Tucson, AZ; SGS-E&S Engineering Solutions Inc. of Tucson, AZ; Resource Modeling Inc. of Stites, ID; Gustavson and Associates of Lakewood, CO and Access Consulting Group of Whitehorse, YT. The base case assumes the owner will lease all mining equipment to result in a lower initial capital cost. The base case assumes mining and crushing for 230 days per year at an average rate of 7,500 metric tons per day. All heap leach feed material would be crushed to 80 percent passing 9.5 millimeters. Some material on the old heap leach pad would be re-processed by crushing and re-leaching on an as needed basis to meet demand when open pit mining is not at full capacity. The existing leach pad would have the last three original designed cells built. Recent geotechnical studies indicate the pad can safely accommodate an increase in stacking height from 30-40 meters, providing more capacity on the pad. Solutions would be circulated and gold recovered year round through a carbon adsorption desorption recovery plant to produce doré on site. Power generation for the PEA was modeled as diesel-powered, providing a total of 5.0 megawatts with normal power draws of 3.93 MW. Waste rock generated from some of the new open pits has been designed to be used to backfill existing and new pits as scheduling allows. Trade off studies were evaluated against the base case and these included the owner purchasing all mining equipment. The owner-purchase scenario, while increasing initial capital costs, project NPV remained relatively consistent, with less than a US$1 million decrease in NPV. This scenario will be evaluated further in the future engineering studies. A number of other enhancements identified in the PEA will be evaluated. The PEA used indicated and inferred resources from eight of the 15 deposits at Brewery Creek and the old heap leach pad to develop the plans included in the PEA. Mining was considered on the oxide portions of eight deposits aligned in a more or less east-west trend along eight kilometers (five miles) in what is known locally as the “reserve trend”. The deposits are West Big Rock, East Big Rock, Lower Fosters, Kokanee, Golden, Lucky, Bohemian and Schooner. The mine schedule calls for mining and processing over 10.0 million metric tons of heap leach feed and 43.5 million metric tons of waste for a strip ratio of 4.2:1. The current life of mine is nine years. The mine plan also includes reprocessing 4.1 million metric tons of material from the old heap leach pad. An additional 3.3 million metric tons of old heap material will be moved but not processed. Recent studies have shown that since the original material was not crushed, an additional 45 percent of the remaining contained gold can be recovered after crushing. The old pad material will be mined and processed when the mining in the open pits is not at full capacity. The PEA projects mining a total of 10.2 million metric tons of oxide material at an average grade of 1.35 g/t gold from the eight open pits and reprocesses 3.1 million metric tons from the old heap at 0.77 g/t gold. The total oxide resources for the Brewery Creek are estimated at 14.1 million metric tons at 1.27 g/t gold classified as indicated and 9.3 million metric tons at 0.93 g/t gold classified as inferred. Operating costs average US$19.95 per metric ton processed over the life of mine, including equipment leasing, which equates to US$778 per troy ounce sold. The estimation of operating costs is based on consumables, labor, maintenance and other requirements. Community and First Nations engagement has been a strong component of the Brewery Creek project dating to the initial mine operator, Viceroy Resources. In 2011 Golden Predator updated and modernized a socio-economic agreement with the Tr’ondek Hwech’in, which addresses environmental responsibilities, permitting, education and employment as well as preferential contracting opportunities and wealth-sharing. The Brewery Creek Project lies within the traditional territory of both the Tr’ondek Hwech’in and the First Nation of Na Cho Nyak Dun. Regardless of the pre-existing relationship and agreement with Tr’ondek Hwech’in and the proximity to Dawson City, Yukon the company has and will continue to consult with both First Nations on all permitting and regulatory matters, the company said. The previous operator and Golden Predator have conducted extensive environmental studies and monitoring programs that document the property since the early 1990s. Studies include water quality, fisheries, wildlife, heritage and vegetation. The company continues to conduct regular environmental sampling and monitoring on the property.

GEOSCIENCE FORUM – The Government of Yukon Nov. 12 said Yukon Premier Darrell Pasloski, Minister of Energy, Mines and Resources Scott Kent, and Minister of Economic Development Currie Dixon will attend the 42nd annual Geoscience Forum and Trade Show hosted by the Yukon Chamber of Mines on Nov. 15-19 in Whitehorse, Yukon. Yukon-based mining and exploration companies, researchers and businesses also will be present. Discussion topics will include initiatives, progressive partnerships and new developments to move Yukon’s mining industry forward. “The Government of Yukon is proud to be involved in the geoscience forum,” said Minister Kent said. “The forum is an unparalleled opportunity to build relationships and to share ideas, information and expertise across our geoscience industry.” Premier Pasloski said, “Mining is Yukon’s largest private industry. The Geoscience Forum provides an opportunity for governments, industry and stakeholders to connect and positively impact our economy and communities. The mining and mineral sector has always been an important part of Yukon’s identity and its growth over the past decade has significantly contributed to making our territory the best place in Canada to live, work, play and raise a family.” The 2014 forum will kick off with a Minerals Investment Forum covering what to look for when investing in mineral companies and will include presentations from some of Yukon’s major mining companies.

LEAD/ZINC/BARITE – Silver Range Resources Ltd. Nov. 11 provided results of an updated independent resource estimate for the Mel main zone on its Mel property in southeastern Yukon Territory. Silver Range also reported results of an independent barite marketing study relating to the property. The Mel main zone hosts an inferred resource of 5.38 million metric tons grading 6.45 percent zinc, 1.85 percent lead and 44.79 percent barite (BaSO4), at a cut-off grade of 5 percent zinc-equivalent. A barite marketing study regarding potential production of barite from the Mel property recently was completed by World Industrial Minerals Inc. of Arvada, Colo. This study concluded that barite from the Mel Property could likely be sold into the drilling products market in Western Canada and Alaska. Based on current demand, World Industrial Minerals estimated that sales of 50,000 metric tons per year at $US100 per metric ton would be reasonable into the Western Canadian market. The study also recommended that further work be conducted to verify that impurity levels meet specifications. “Silver Range is very encouraged by the resource estimate – especially considering that the Mel Main zone remains open to extension and is only one of four known zones on the property,” said Silver Range President and CEO Doug Eaton. “Project economics will certainly be enhanced with barite as a potential co-product.” The Mel Property lies 80 kilometers (50 miles) east of Watson Lake and 40 kilometers (25 miles) north of the Alaska Highway. Silver Range also said it will soon be filing exploration permitting applications in regard to the Mel property, which will include plans for detailed drilling at the Mel Main zone to define an indicated resource, and exploration drilling at Mel Main and other zones on the property to further evaluate and expand resource potential. The application also will include various environmental, heritage and geotechnical studies needed to advance development of the project.

SILVER/GOLD – Jaxon Minerals Inc. Nov. 10 reported an arrangement to purchase the ST silver-gold prospect located roughly 120 kilometers (74 miles) northwest of Whitehorse, Yukon Territory. The company says streams draining the area have long been known to carry fine crystalline gold with the source as yet undetermined. Previous operators have conducted regional and local surveys, which resulted in the discovery of a significant gold-silver exploration target. The claims cover coincident electromagnetic and induced polarization geophysical anomalies. The area of the airborne electromagnetic anomaly was covered with a survey grid totaling 23 kilometers (14 miles) of cut lines. Soil geochemical sampling has identified a gold-silver anomaly immediately down slope from the geophysical zones. Historic exploration expenditures total about C$175,000. To earn a 100 percent interest in the ST prospect, Jaxon will pay the arms-length vendor C$1,000 cash and issue 500,000 of its common shares. The vendor will retain a 2 percent net smelter return royalty on future production and will receive an annual royalty payment of C$5,000 commencing two years from the date of the agreement. Jaxon is a Vancouver, B.C.-based junior exploration company with an option to acquire 100 percent of the mineral rights to three properties located in the Flin Flon-Snow Lake volcanogenic massive sulfide and gold deposit greenstone belt in Manitoba and Saskatchewan.

PROJECT ASSESSMENT – The 2013-2014 Annual Report for the Yukon Environment and Socioeconomic Assessment Board is now available on the regulatory body’s web site. The report highlights some of the work completed over the year and includes information about the assessment process, the Board and YESAB’s organizational structure. A summary of assessment statistics and activities undertaken by the Designated Offices and the Executive Committee are included. In 2013 the Designated Offices received 163 project assessments, and in 2014, 165 project assessments, including 15 quartz mining and 50 placer mining projects. The board also continued to expand outreach efforts within the communities and among First Nations. Information about YESAB’s Online Registry, communications and outreach efforts and a copy of the audited financial statements can also be found within the report. Hard copies of the report are sent to members of our mailing list and digital copies of past and current annual reports can be found on the YESAB website. To receive a hard copy of YESAB’s Annual Report,


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