1.0 TITLE PAGE

   TECHNICAL REPORT ON THE NUUK GOLD
   PROVINCE PROJECT, NUUK FJORD AREA,
            WEST GREENLAND
    ...
TABLE OF CONTENTS

3.0 EXECUTIVE SUMMARY AND RECOMMENDATIONS ................................................................
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND


10.0 DEPOSIT TYPE............................................
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND




3.0 EXECUTIVE SUMMARY AND RECOMMENDATIONS

3.1    INTROD...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND


control cost, drill program are generally conducted betwee...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND


major, deep seated, regional NE structural zone, separatin...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND


3.6     MINERALIZATION
        At Storoe mineralization oc...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND


       Re-Os analyses of arsenopyrite show that two period...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND

•   Alma Zone west of Swan N Zone, discovered in 2008, has ...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND


Table 3.1 Writer’s Check Samples from NGP.

 Sample #     ...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND

      At Igasoq a 54 sediment sampling program was carried ...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND

4.0 INTRODUCTION AND TERMS OF REFERENCE
4.1    INTRODUCTION...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND

The writer visited the site of the Storoe Gold Deposit and ...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND

•




•
                                    ▲north

       ...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND




                     Figure 6.2: Location of NGP License...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND

49% interest or 65% interest a joint venture to develop the...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND




6.3     GREENLAND MINING LAW

       The Danish Consolid...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND




6.4    LEGAL SURVEY
        The lease areas are establis...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND

7.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES,
INFRASTRUCTURE...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND

include whales, seals, and walrus. Fishing and harvesting s...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND

became the focus of a PhD thesis and a Master thesis by stu...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND


Table 8.1 Summary of Exploration History of the NGP.

Year...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND

                        drilling completed on lower and upp...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND

*Intersections are drilled intervals and not true width.

9...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND

       The Qingaaq and Aappalaartoq mountains contain a sup...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND




Figure 9.1: Geology of Greenland



         PAC GEOLOGI...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND




       Figure 9.2 Generalized Geology of License Areas.
...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND




                             ▲north

Figure 9.3 Geology ...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND




Figure 9.4 Qussuk Area Showings and Amphibolite Zones (F...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND




Figure 9.5 Swan North Geology, Drillhole Locations and W...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND




Figure 9.6 Geology of Plateau Prospect Showing Drillhole...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND




10.0 DEPOSIT TYPE
10.1 Archean Gold (Figures 10.1& 10.2)...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND




Figure 10.1 Model for Archean Greenstone Belt Gold Depos...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND




11.0 MINERALIZATION
       At Storoe mineralization occu...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND

metamorphism into structurally controlled and higher grade ...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND




                                                        ...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND

11.1 GENERAL DESCRIPTION

       The NGP covers the known g...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND

11.3 EXPLORATION POTENTIAL
      The NGP is believed to hav...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND

quartz-sulphide zones, were intersected, core logged and sa...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND




Figure 12.1 Location of Qussuk 2009 Boreholes and Surfac...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND



13.0 DRILLING
       NGL supported 2009 drilling in the S...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND




Figure 13.1 Drillhole Plan at the BD and Main Zones (Sto...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND




.


    Figure 13.2 Qingaaq Longitudinal Section 1. (fro...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND




Figure 13.3 Qingaaq Longitudinal Section 2 (From Nuna (L...
TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND

              Table 13.2 Summary of Selected Drill core Sam...
Nuukfjord 43-101
Nuukfjord 43-101
Nuukfjord 43-101
Nuukfjord 43-101
Nuukfjord 43-101
Nuukfjord 43-101
Nuukfjord 43-101
Nuukfjord 43-101
Nuukfjord 43-101
Nuukfjord 43-101
Nuukfjord 43-101
Nuukfjord 43-101
Nuukfjord 43-101
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Nuukfjord 43-101

  1. 1. 1.0 TITLE PAGE TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, NUUK FJORD AREA, WEST GREENLAND PROPERTY Storoe License (2007/59) 878Km2 Isua License (2005/25) 179 Km2 Iqasoq License (2008/27) 193 Km2 Qilanngaarsiut License (Pending) 27Km2 LOCATION Storoe Centered Near: 64 42' N Latitude, 51o06' W Longitude o Prepared for: Nuukfjord Gold Ltd. Suite 520-470 Granville Street Vancouver, British Columbia Report prepared by Peter A. Christopher PhD., P.Eng. PAC GEOLOGICAL CONSULTING INC. 3707 West 34th Avenue Vancouver, British Columbia V6N 2K9 September 18, 2009 i
  2. 2. TABLE OF CONTENTS 3.0 EXECUTIVE SUMMARY AND RECOMMENDATIONS ................................................................... 3 3.1 INTRODUCTION AND PROPERTY DESCRIPTION ................................................................ 3 3.2 LOCATION, INFRASTRUCTURE AND ACCESS ..................................................................... 3 3.3 OWNERSHIP AND TERMS OF AGREEMENT ......................................................................... 4 3.4 GEOLOGY..................................................................................................................................... 4 3.5 EXPLORATION CONCEPT & DEPOSIT MODEL..................................................................... 5 3.6 MINERALIZATION...................................................................................................................... 6 3.7 STATUS OF EXPLORATION, DEVELOPMENT AND OPERATIONS.................................... 8 Table 3.1 Writer’s Check Samples from NGP. ...................................................................................... 9 3.8 CONCLUSIONS AND RECOMMENDATIONS ....................................................................... 10 3.9 OPINION OF MERIT .................................................................................................................. 10 4.0 INTRODUCTION AND TERMS OF REFERENCE ...................................................................... 11 4.1 INTRODUCTION ........................................................................................................................ 11 4.2 TERMS OF REFERENCE AND PURPOSE............................................................................... 11 4.3 SOURCES OF INFORMATION ................................................................................................. 11 4.4 FIELD INVOLVEMENT OF THE WRITER.............................................................................. 11 5.0 RELIANCE ON OTHER EXPERTS ............................................................................................... 12 6.0 PROPERTY DESCRIPTION AND LOCATION ............................................................................ 12 6.1 PROPERTY AREA AND LOCATION ....................................................................................... 12 Table 6.1 Pertinent Data on NGP Licenses. ......................................................................................... 12 Figure 6.1 General Location Plan For Nuuk Area, Greenland. ............................................................ 13 Figure 6.2: Location of NGP Licenses. ................................................................................................ 14 6.2 LAND TENURE, AND LEGAL AGREEMENTS ...................................................................... 14 Table 6.2 Summary of Payment Schedule and Nuukfjord/NunaMinerals Deal Summary................... 15 6.3 GREENLAND MINING LAW.................................................................................................... 16 TABLE 6.3: SUMMARY OF GREENLAND MINERAL TENURE * .................................................. 16 6.4 LEGAL SURVEY ........................................................................................................................ 17 6.5 LOCATION OF MINERALIZATION AND FACILITIES......................................................... 17 6.6 ENVIRONMENTAL LIABILITIES............................................................................................ 17 6.7 PERMITS ..................................................................................................................................... 17 7.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ....................................................................................................................................... 18 7.1 ACCESS AND PROXIMITY TO POPULATION CENTRES ................................................... 18 7.2 PHYSIOGRAPHY, TOPOGRAPHY, ELEVATION, CLIMATE AND VEGETATION........... 18 7.3 SURFACE RIGHTS, POWER, WATER, PERSONNEL, TAILINGS SITES, PROCESSING PLANT SITES ......................................................................................................................................... 19 7.4 ENVIRONMENTAL CONCERNS ................................................................................................... 19 8.0 HISTORY......................................................................................................................................... 19 Table 8.1 Summary of Exploration History of the NGP. ..................................................................... 21 Year ...................................................................................................................................................... 21 Operator................................................................................................................................................ 21 Work Program ...................................................................................................................................... 21 8.1 HISTORIC DRILLING AND SAMPLING ................................................................................. 22 Table 8.2 Historic Drilling Through 2008 on NGP. ............................................................................. 22 9.0 GEOLOGICAL SETTING............................................................................................................... 23 9.1 REGIONAL GEOLOGY AND TECTONICS (Figure 9.1& 9.2) ................................................ 23 9.2 PROPERTY GEOLOGY (Figures 9.3, 9.4, 9.5, & 9.6) ............................................................... 23 Figure 9.1: Geology of Greenland ........................................................................................................ 25 Figure 9.2 Generalized Geology of License Areas............................................................................... 26 Figure 9.3 Geology Map of Central Storø (from Ostergaard, 2009). ................................................... 27 Figure 9.4 Qussuk Area Showings and Amphibolite Zones (From Nuna, ........................................... 28 Figure 9.5 Swan North Geology, Drillhole Locations and Writer’s Sample Location. ........................ 29 Figure 9.6 Geology of Plateau Prospect Showing Drillhole & Writer’s Sample Locations. ................ 30 PAC GEOLOGICAL CCONSULTING INC. SEPTEMBER 2009 1
  3. 3. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND 10.0 DEPOSIT TYPE............................................................................................................................... 31 10.1 Archean Gold (Figures 10.1& 10.2) ............................................................................................. 31 10.2 Nuuk Gold Province Exploration Approach................................................................................. 31 Figure 10.1 Model for Archean Greenstone Belt Gold Deposits (Pulsen et al., 2000)......................... 32 Figure 10.2 Simplified Model of Geological Environment and Mineral Occurrences NGP (Stensgaard and Stendal, 2007). ............................................................................................................................... 32 11.0 MINERALIZATION........................................................................................................................ 33 Figure 11.1 Qingaaq Prospect Showing Locations for BD and Main Mineralized Zones.................... 35 11.1 GENERAL DESCRIPTION......................................................................................................... 36 11.2 EXPLORATION TARGETS ....................................................................................................... 36 11.3 EXPLORATION POTENTIAL ................................................................................................... 37 12.0 EXPLORATION BY THE ISSUER ................................................................................................ 37 Figure 12.1 Location of Qussuk 2009 Boreholes and Surface Saw channel Samples.......................... 39 13.0 DRILLING ................................................................................................................................... 40 Table 13.1 Selected Drill Intersections From the Main Zone and the BD Zone, Qingaaq prospect, Storø. .................................................................................................................................................... 40 Figure 13.1 Drillhole Plan at the BD and Main Zones (Storoe Deposit) at Qingaaq Mountain Prospect. .............................................................................................................................................................. 41 Figure 13.2 Qingaaq Longitudinal Section 1. (from Nuna (Loc. see Fig. 13.1). .................................. 42 Figure 13.3 Qingaaq Longitudinal Section 2 (From Nuna (Loc. see Fig. 13.1). .................................. 43 Table 13.3 Summary of Historic Drilling by NunaOil and Nuna on NGP. .......................................... 45 14.0 SAMPLING METHODS AND APPROACH.............................................................................. 46 14.1 SAMPLING BY NUNA............................................................................................................... 46 14.2 Sample Preparation, Analysis and Security...................................................................................... 46 Table 14.1 Laboratory and Analytical Procedure Summary................................................................. 47 14.3 INSPECTION BY THE WRITER ............................................................................................... 48 15.0 DATA VERIFICATION and QA/QC Procedures. ...................................................................... 48 Table 15.1 Writer’s Check Samples from NGP. .................................................................................. 49 16.0 ADJACENT PROPERTIES ............................................................................................................. 50 17.0 MINERAL PROCESSING AND METALLURGICAL TESTING............................................. 50 18.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ........................................ 50 Table 17.1 Data for Micro-bulk Samples from NGP............................................................................ 51 19.0 OTHER RELEVANT DATA AND INFORMATION ................................................................ 51 20.0 INTERPRETATION AND CONCLUSIONS.............................................................................. 51 21.0 RECOMMENDATIONS AND BUDGET....................................................................................... 52 21.1 PHASE 1 PROGRAM.................................................................................................................. 52 21.2 PHASE 2 PROGRAM.................................................................................................................. 52 Table 21.1 Budget for NGP Recommended Phase 1 Program. ............................................................ 53 Table 21.2 Budget for NGP Success Contingent Phase 2 Program...................................................... 53 21.3 OPINION OF MERIT .................................................................................................................. 53 Figure 21.1 Proposed Diamond Drill Hole Store (Qingaaq) Main Zone.............................................. 54 22.0 REFERENCES AND SOURCES OF INFORMATION.................................................................. 55 23.0 SIGNATURE, STAMP AND DATE ................................................................................................... 56 24.0 CERTIFICATE................................................................................................................................. 57 ______________________________________________________________________________________ PAC GEOLOGICAL CCONSULTING INC. SEPTEMBER 2009
  4. 4. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND 3.0 EXECUTIVE SUMMARY AND RECOMMENDATIONS 3.1 INTRODUCTION AND PROPERTY DESCRIPTION Nuukfjord Gold Ltd. (“NGL”) through an agreement dated June 23, 2009 and subsequent purchase agreement has acquired an option to earn up to 65% interest in NunaMinerals A/S (“Nuna”) 100% interest in the c. 1277km2 Nuuk Gold Province Project (“NGP”) in West Greenland (Nuna NR dated June 23, 2009). The project is an exploration stage property that has the advanced Storoe gold deposit (also Storø) and several other significant gold prospects at Qussuk in a 20km gold bearing Archean metamorphosed belt. Nuna explored the NGP since the 1990s and has conducted extensive surface geochemical and geophysical work and drilled c. 17,000 meters of diamond drilling mainly on the Storoe (Main, BD), Swan and Plateau prospects. NGL commissioned PAC Geological Consulting Inc. to prepare a technical report reviewing and summarizing exploration data and mineral potential of the NGP and recommend, if deemed appropriate, a program of exploration work on the project. The writer prepared this report in compliance with National Instrument 43-101 and followed Form 43-101F1. The report is required by NGL for supporting documentation to be filed with the TSX Exchange. The writer, an independent Qualified Person, as defined by National Instrument 43-101, spent from July 11th to July 14th, 2009 on the property and in Nuna’s Nuuk, Greenland office examining, sampling and assessing NGP gold prospects and gathering background information. The writer collected 12 check samples and observed the preparation of these samples in Nuuk at a modern laboratory preparation facility operated by Activation Laboratories Ltd. (“Actlabs”). 3.2 LOCATION, INFRASTRUCTURE AND ACCESS The NGP covers an area of approximately 1277 km2 and covers over 40 kilometres of metamorphosed greenstone in the Nuuk Gold Province or Belt of West Greenland. The project involves seven non-contiguous blocks with six under concession and a recent application pending for the 27km2 Qilanngaarsiut block. The seven blocks are within a rectangular area defined by latitudes 63°45’N to 65°30’N and longitudes 51°40’W to 49°30’W and extend northeast for 150km from 20km south of Nuuk, the capital of Greenland. The NGP, Storoe License, is centered near 64°42' N Latitude, 50°06' W Longitude. Access to most parts of the property is by boat with helicopter used to support crew and drill moves and to move some supplies and samples. Greenland obtains most of its electrical power from hydro projects and a number of local run of river power possibilities exist. Nuuk, the capital and largest city in Greenland, is within the NGP area and provides a source of supplies and services. The NGP concession blocks cover ground that extends from near sea level to low mountains with rugged relief. Glaciers lie east of the NGP and to PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 3
  5. 5. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND control cost, drill program are generally conducted between May and October. Geophysical program can start earlier and extend later but geological mapping is best done during summer months when most of the snow has melted. 3.3 OWNERSHIP AND TERMS OF AGREEMENT On June 23, 2009, Nuna, the main mineral exploration company in Greenland, signed an option agreement with Nuukfjord Gold Mines Ltd. (NGM) covering the 1277km2 Nuuk Gold Project (NGP) in the Nuuk Gold Province in West Greenland. Nuukfjord Gold Ltd. (“NGL”) through subsequent purchase agreement has acquired the NGM option to earn up to 65% interest in the NunaMinerals A/S (“Nuna”) interest in the c. 1277km2 Nuuk Gold Province Project (“NGP”) in West Greenland (Nuna NR dated June 23, 2009). The NGP is an amalgamation of select parts of the Storoe exploration license which contain the advanced Storoe Gold Deposit and the Qussuk Gold Prospect, the Isua exploration license, the Igasoq exploration license and the Qilanngaarsuit exploration license (under application). Under the option agreement term, NGL is able to earn, incrementally through four phases, a 65% interest in Nuna’s 100% interest in the NGP by funding Cdn $23,000,000 (c. DKK 106 million) of exploration expenditures by September 30, 2013. Upon NGL earning a 49% interest or 65% interest a joint venture to develop the NGP will be formed between NGL and Nuna (see Table 6.2). Nuna remains the operator of the NGP and NGM controls the funding. 3.4 GEOLOGY The gold prospects in the Nuuk Fjord area on the NGP are located in the strongly deformed and metamorphosed rocks of Archean age. The area is an extension of the North American Craton and correlates with the Nain Province in Labrador, Canada. The geology of the Nuuk area is dominated by grey orthogneisses formed during episodes of crustal growth. The gneisses representing crustal terranes of different ages were amalgamated during the Neo-Archean (c. 2.7-2.6 Ga). The terranes are often separated by structurally complex, deep-seated tectonic boundaries. Supracrustal belts, consisting of metavolcanic and minor metasedimentary rocks, occur within or between crustal blocks. The supracrustal rocks have similarities to Archean greenstone belts in Ontario and Quebec but the metamorphic grade is generally amphibolite to granulite facies, so the metamorphic rocks have different mineralogy. The metamorphic terrane once called the Akulleq terrane (McGregor et al., 1991) is now, with better age control, subdivided into the Eo-Archean Faeringehavn and Iskasia terranes, the Meso-Archean Kapisillit terrane and the Neo-Archean Tre Brødre terrane with the Faeringehavn and Tre Brødre terranes occupying much of the central and south-western part of Nuuk Fjord. The gold prospect on Storoe is hosted by metavolcanic and metasedimentary rocks of the Storoe supracrustal belt, bounded to the west by the NNE, 300-400m wide, Storoe shear zone. The Storoe shear zone is part of a PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 4
  6. 6. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND major, deep seated, regional NE structural zone, separating supracrustal rock from footwall Akia terrane orthogneisses. Early Archean orthogneisses of the Faeringehavn terrane overlie Storoe supracrustal rocks to the east and interleaved gneisses occur under supracrustal rocks to the north. The area was metamorphosed to amphibolite facies with sillimanite being the dominant alumino-silicate. A10-20m wide, poorly foliated unit of highly aluminous rocks consisting of garnet, sillimanite, mica and feldspar, near a contact of overlying amphibolite, is referred to as the BD zone. Within the garnet-biotite gneiss, up to a 10m thick layer of garnet-magnetite-rich (locally over 80% garnet) ironstone occurs as irregular layers. The uppermost unit, up to 250m wide, consists of fine to medium-grained black amphibolites. Main zone gold mineralization occurs in altered zones within the upper amphibolite unit. Biotite-garnet alteration zones up to 50m thick enclose auriferous quartz veins. The auriferous zones show an increase in the concentrations of biotite, garnet, quartz, diopside and sulphides (mainly pyrrhotite and arsenopyrite). The geology of the Qussuk area comprises a central belt of island arc elements with NNE, isoclinally folded panels of volcaniclastic meta-andesites intercalated with altered volcano-sedimentary rocks, tholeiitic amphibolite and ultra-mafic bodies surrounded by gneissic and granitic bodies of the Taserssuaq tonalite complex and Qussuk granite. Hydrothermal altered, leucocratic andesitic amphibolite hosts gold mineralization in the southern and western part of Qussuk peninsula and western areas of Qussuk Bay. 3.5 EXPLORATION CONCEPT & DEPOSIT MODEL The exploration model is that of Archean greenstone gold deposits which are well documented in the North American Craton (Figure 10.1) and the Archean Greenstone belts in Ontario and Quebec. The deposits occur in basic to intermediate volcanic terrain that may be subsequently intruded by island arc, intermediate to acidic volcanic. Gold deposits or camps are associated with major structural zones which are traced for long distances and after occur at or near unit boundaries. A difference in mineralogy occurs because of amphibolite to granulite grade metamorphism in the NGP (Figure 10.2). The Archean gold deposits can often be located using conventional silt, soil and rock geochemistry and in higher sulfidation types or pyrrhotite bearing type may be detectable with magnetic and electromagnetic geophysical methods. The exceptional amount of outcrop and sparse vegetation in West Greenland allows for conventional prospect by tracing of rusty, biotite and garnet bearing contacts. Then sawed rock channel samples are used to evaluate the gold content. PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 5
  7. 7. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND 3.6 MINERALIZATION At Storoe mineralization occurs at two main tectono-stratigraphic levels with high-grade lenses of quartz veins and disseminated sulphides and sulpharsenides in mineralized and altered higher-grade zones up to 12m wide and several hundred meters along strike within a larger, 10-50m, wide low-grade alteration envelope dominated by garnet-hornblende-biotite-diopside-rich rocks. Gold mineralization on the Storoe License occurs together with arsenopyrite at the BD Zone and the Main Zone on the north slopes of Qingaaq Mountain. Extensive channel sampling and more than 12,000 metres of core drilling has demonstrated continuity of mineralization in three dimensions on both the Main and BD Zones. The Main Zone gold mineralization occurs in an altered upper amphibolite sequence in the core of an antiformal fold with gold in quartz veined rocks, commonly rich in garnet and biotite. A Main Zone, 1.00m chip sample by the writer contained 25.0g/t Au (Acme 22.31g/t Au) and 2.00m chip samples 197353 and 197356 contained 8.72 g/t Au and 8.80g/t Au respectively. The Main Zone occurs within a large, ENE-plunging F3 antiformal hinge (Main Zone s.s.) with an eastern flank (Main Zone east and Hanging Wall Zone) and a western flank (Main Zone west) that each can be followed uphill for approximately 400 m on surface (Fig. 11.1). Rock samples return up to 91 g/t Au in this area with common visible gold in both surface and drill core samples. The mineralisation has been traced to 150 m below the surface in drill holes. The lower part of the hinge area is covered by scree, and the exact dimensions and geometry of the mineralisation in this area is thus only indicated from drill hole data. Higher-grade gold mineralisation occurs as a series of presumably discontinuous lens-shaped bodies (2–12 m wide), within a larger, low-grade alteration envelope dominated by garnet-hornblende-biotite-diopside-rich rocks (10–50 m wide). The area is partly disturbed by late pegmatites. Gold grades in drill samples range up to 52 g/t Au over 2 m (12.67 g/t Au over 12 m). The lower BD Zone is on the contact between biotite-sillimanite-garnet gneiss and the upper amphibolites. The BD gold mineralization occurs mainly in quartz-veined, arsenopyrite-bearing zones along the contact and in both rock types up to 20m away from the contact, mainly within or next to sections of sheeted quartz veins. The BD zone, exposed at 700–1050 m elevations, has been followed along strike for 700-800m with channel samples that returned up to 20g/t Au over a true width of 2.5m. Three-dimensional modeling of the BD zone based on surface geology and drill core information shows that the zone dips to the NE underneath the Qingaaq north face, and defines a major folded mineralised plane structurally below the Main Zone. It gets progressively shallower (dipping c. 45° at depth) down from the exposures near the top of the Qingaaq north face. The fold geometry gets progressively more complex towards the north (downhill). In drill holes at the foot of the Qingaaq north face, the BD plane has been recognized as deep as 300 m elevation (150–200 m below surface), giving a minimum known length of the BD horizon of c. 1000 m. Gold grades in drill core samples range up to 30 g/t Au over 2m. PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 6
  8. 8. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND Re-Os analyses of arsenopyrite show that two periods of gold mineralization occurred with older mineralization of the BD Zone possibly re- mobilized during peak metamorphism into structurally controlled and higher grade Main Zone mineralization. Gold grades in drill samples range up to 52 g/t Au over 2m in a 12m interval grading 12.67 g/t Au. The higher-grade nature of the Main zone mineralization was verified by the writer’s samples. A New Main Zone, discovered in 1996, is 2-10m wide and located west of the Main Zone west in a NE-SW trending ductile thrust plane. Narrow quartz veins occur within altered amphibolite which can be traced for about 400 meters (Figure 10.1). Gold at Storoe also occurs within sulphide-rich garnetite consisting mainly of almandine garnet, biotite and pyrrhotite, and within Iron formation. The iron formation, occurring stratigraphically below the BD horizon will be targeted with some Phase 1 drill holes. A BD zone, 1.00m chip sample by the writers contained 5.24g/t Au (Acme 3.90g/t Au) and a 2.00m chip sample contained 0.976g/t Au (Acme 0.83 g/t Au). At the Qussuk prospects mineralization has been traced for nearly 20km with mineralization believed to be syn-volcanic and formed in an island-arc environment. Four main named zones include the Plateau Zone, Blue Fox Zone, Swan Zone, Swan N Zone and recently discovered Alma Zone: • Plateau Zone contains auriferous zones 1.5-2.0m wide consisting of garnet altered sulphide-bearing, quartz veined amphibolite. Visible gold (VG) has been identified in quartz veins with a Nuna grab sample yielding 35g/t Au and 7 of 20 diamond drill holes completed in 2008 reporting VG. The VG is typically found in narrow quartz veins (up to 0.6m) flanked by semi-massive to massive pyrrhotite and minor chalcopyrite. A 1m chip sample collected by the writer contained 9.40 g/t Au. • Blue Fox Zone is exposed on the south-side of Qussuk Bay where gold occurs in quartz veined amphibolite, calc-silicate alteration and a 5-30cm wide band of massive to semi-massive iron-copper sulphides. A Nuna sawed 1.5m channel yielded 21.7g/t Au and several other rock and sediment samples in an area 25 by 100m are in the 2-5g/t Au range. • Swan Zone contains semi-massive to massive iron-copper sulphides in fold hinges in grey meta-andesite and amphibolite with local meter wide zones enriched in sulphides. An 80m wide alteration package with quartz, hornblende, garnet, tourmaline and iron-copper sulphides returned modest gold values. DDH 25 intersected 24m grading 1.23 g/t Au in the alteration zone. • Swan N Zone is a 30-80m wide by 1km N-S trending zone of partly silicified, hornblende, quartz, garnet, biotite, and iron-copper sulphide bearing zone. Nuna channel samples yield up to 2m grading 6.5g/t Au (writer’s check sample 6.15g/t Au) with several other 2m channel samples grading 1-3g/t Au. Zone was drill in 2009 with results pending. PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 7
  9. 9. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND • Alma Zone west of Swan N Zone, discovered in 2008, has several surface samples in the 1-4.5g/t Au range. The zone occurs along a 1.5km trend that is in the early prospecting stage. 3.7 STATUS OF EXPLORATION, DEVELOPMENT AND OPERATIONS Nuna and an associated company NunaOil have explored the in the NGP area since 1991. The Qingaaq prospect and Aappalaartoq Mountain area have been explored with c. 3600 surface samples which includes c. 3000m of rock channel sampling and approximately 13,000m of drilling with 66 holes at Qingaaq and 6 at Aappalaartoq. Six short Winkie holes were also drilled. Drilling was started at Qingaaq by NunaOil in 1995 and 1996 and later continued by Nuna in 2003, 2004, 2005, 2006 and 2007. A regional recognisance programs of Qussuk in 2004 and 2005 produced samples with encouraging results and in 2006 a more substantial surface sampling program was conducted. The 2007 results led to a helicopter supported airborne SkyTem magnetic and electromagnetic survey covering 45km2 with lines spaced at 100 meters and 400 line kilometres flown. The positive results from surface sampling and airborne geophysics led to a 3430 m drilling program in 2008 with 20 holes drilled in the Plateau Zone, 1-300m hole drilled to test a SkyTem anomaly in the Swan Zone and 4 holes drilled in the Swan N Zone. The Isua concession contains the Tangent Gold Showing and Baseline Target (base metals) with a 110g/t grab sample containing from the Target showing and a kilometre long electromagnetic Baseline conductor associated with Zn, Pb, Ag, and Au mineralization. A four hole 372m initial drilling program at Isua produced no significant drill results. Historic exploration from 1991 through 2008 by Nuna and NunaOil on the GNP has included over 5,000 surface samples and 17,010m of diamond drilling. Screened metallics assays have been used on mineralized core and elevated surface sample to moderate the nugget effect caused by the irregular distribution of course gold. The 2009 program, presently in progress, is being funded by NGL with an advance of $500,000 paid to Nuna. At Storoe, 9 sites were selected for drill pad preparation for the 2010 drilling program (Figure 21.1). About 4,000 (20-25 holes) of drilling is planned to provide information on the BD Zone on about an 80m x 100m grid. Drilling would extent up to 60m beyond the BD zone to intersect the underlying iron formation. An additional 1000m of drilling in the main zone to test a thrust ramp model and possibly extend the Main zone is being considered. PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 8
  10. 10. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND Table 3.1 Writer’s Check Samples from NGP. Sample # Location Type/ Width Au g/t Au g/t COMMENTS Long./Lat. KG Acme Actlabs (Elevation) s 197351 51°0.09434W Chip/ 2.0m 0.83 0.976 BD Zone (Upper Qingaaq) 64°0.40915N 2.34 197352 51°0.09447W Chip/ 1.0m 3.90 5.240 BD Zone channel in garnet 64°0.40917N 2.13 gneiss 197353 51°0.08445W Chip/ 2.0m 8.18 8.720 @84612: 16260ppb Au; HW to 64°0.41217N 1.86 Main Zone; rusty Amp. aspy., pyrrhotite 197354 51°0.08438W Chip/ 2.0m 1.41 1.350 Laminated rusty Amp. aspy., 64°0.41217N 2.18 pyrrhotite 197355 51°0.08438W Chip/ 2.0m 2.69 4.840 Main Zone Discovery Area 64°0.41268N 2.02 Amp., QV, aspy., pyrrhotite, 570m garnet + biotite alteration 197356 51°0.08446W Chip/ 2.3m 7.56 8.80 Amp., QV, aspy., pyrrhotite, 64°0.41271N 1.96 garnet + biotite alteration 570m 197357 51°0.08530W Chip/ 1.0m 22.31 25.0 @Channel#72 Amp., QV, aspy., 64°0.41284N 1.73 pyrrhotite, garnet + biotite alteration 197358 51°0.08445W Chip/ 2.0m 5.19 6.150 Swan North py, po, cpy silica- 64°0.41217N 1.98 garnet-biotite alteration @ 245m #184271: 6490 ppb Au 197359 51°0.12255W Chip/ 1.0m 8.07 9.40 Plateau Zone sil. Amp. With py, 64°0.66918N 3.33 po, tr cpy Au in QV @184094: 730m 35.8 g/t Au 13174 DDH05-03 30.0- 2.3m 1.64 1.380 Original Au: 1654ppb 32.3m 14303 DDH05-22 136- 2.0m 23.12 8.930 Original Au: 4517ppb 138m 103322 DDH07-42 130-132 2.0m 0.28 0.159 Original Au: 5700ppb Acme= Acme Analytical Laboratories (Vancouver) Ltd. Actlabs= Activation Laboratories Ltd. (Nuuk, Greenland) Sampling by the writer (Table 3.1) verified the presence of significant gold. The variation in result obtained by Acme and Actlabs reflect the nugget effect which has been evaluated by Nuna’s checking programs and shown to exist. Nuna uses 1000g of pulped sample for screened metallic assays of mineralized core and re-runs of higher-grade surface samples to minimize the nugget effect. At Qussuk, a 13 hole drilling program of 1363.45m was completed at 7 sites at Swan North (Table 12.1, Figure 12.1). The garnet-biotite-quartz-sulphide targeted zones were intersected with core logged, sampled and submitted for analyses. Surface saw channel sampling included: • Alma-15 profiles with total length of 82.5m, • Swan North-8 profiles with total length of 95m. A total of 34 sediment samples were collected from drainage systems to the east and northeast of Swan and Swan North. PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 9
  11. 11. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND At Igasoq a 54 sediment sampling program was carried out. At Qilanngaarsuit a one week reconnaissance rock sampling and sediment sampling program was carried out. Further 2009 drilling (possibly 600m) and follow-up surface geochemical sampling are contingent on the successful analytical results from the completed 2009 work grogram. 3.8 CONCLUSIONS AND RECOMMENDATIONS NunaMinerals has systematically explored the NGP since the early 1990’s and compiled an extensive inventory of geological, geochemical, geophysical and drilling data on an area prospective for Archean hosted gold deposits. The deposits have similarities to productive camps in Ontario and Quebec, Canada which encouraged NGL to participate in the NGP by funding of Nuna to earn up to 65% interest. The writer visited the NGP with Nuna exploration personnel and found exploration practices to meet or exceed industry best practice standards. Nuna’s exploration staff has the infrastructure and experience to conduct the exploration in an efficient manor for NGL. The licenses included in the NGP range from the advance stage Qingaaq and Qussuk prospects in the Storoe licenses to early stage targets at with Isua and Igasoq licenses and reconnaissance prospecting at the Qilanngaarsiut license application. The NGP provides the opportunity to participate in exploration ranging from gold resource definition at the Storoe gold deposit to early stage prospecting of Archean volcanic belts in an area demonstrated to host significant gold mineralization. The writer recommends a Phase 1, Cdn $3,000,000 work program for the property. The recommended program is designed to carry out further exploration of the Storoe Gold deposit with 4,500 meters (~20-25 hole program) of definition diamond drilling and 1,000m available to test in the thrust ramp zone. The Phase 1 should further evaluate the advanced Qussuk prospects and continue early stage exploration of the Igasoq, Isua and Qilanngaarsuit licenses. The Phase 1 program expenditures combined with 2009 exploration costs would allow NGL to earn a 15% interest in the NGP. A success contingent, Phase 2, 6,000m drilling program should be planned and budgeted based on Phase 1 experience. If the Phase 1 drill results are successful and time remains in the field season, then some Phase 2 drilling might be considered for the 2010 field season. The Phase 2 budget is estimated at Cdn $3,500,000 and will allow NGL to earn an additional 15% in the NGP. 3.9 OPINION OF MERIT It is the opinion of the writer that the NGP is of sufficient merit that the recommended budget, as outlined above, represents a worthwhile exploration program and expenditure for NGL. PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 10
  12. 12. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND 4.0 INTRODUCTION AND TERMS OF REFERENCE 4.1 INTRODUCTION Nuukfjord Gold Ltd. (“NGL”) holds an option to earn up to a 65% interest in the NGP. The 1277km2 project is located in West Greenland mainly northeast of the capital city of Nuuk with one lease application 20km to the south of Nuuk. Access to most parts of the property is by boat along numerous fjords with helicopter supported drill and crew moves. The main objectives of NGP exploration work on the property are to better define known mineralized zones and to identify new exploration targets with potential for new deposit discoveries. This report describes: • the geological setting of the NGP area, • mineralization within the NGP, • the results of the exploration work carried out to date, • comments on exploration potential, and • recommended further exploration work for the NGP. 4.2 TERMS OF REFERENCE AND PURPOSE NGL commissioned the writer to prepare a technical report reviewing and summarizing exploration data and mineral potential of the NGP and recommend, if deemed appropriate, a program of exploration work on the project. The report was prepared in compliance with National Instrument 43-101 and follows Form 43-101F1. The report is required by NGL for supporting documentation needed for listing on the TSX Exchange. 4.3 SOURCES OF INFORMATION This report on the NGP is based on the following sources of information: • Technical publications of a regional and a district nature from the Greenland Bureau of Mines and Petroleum (“BMP”), international scientific journals, PDAC 2009 conference proceedings notes and power points and assessment reports filed by NunaMinerals with the BMP. These are listed in References and Sources of Information section of this report (Section 22.0). • Private technical documents written by previous workers on the property and listed in Section 22.0 of this report. • Public news releases of NunaMinerals, a Nuuk based public company that holds the licenses for the NGP. • Discussions with Nuna technical and management personnel. 4.4 FIELD INVOLVEMENT OF THE WRITER The writer made a site visit to the NGP for NGL on July 11th to 14th, 2009, 2009 at which time he had the opportunity to have extended discussions with NunaMinerals geologists who have had long term experience on the project area. PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 11
  13. 13. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND The writer visited the site of the Storoe Gold Deposit and the Qussuk Gold prospects and started verification of sampling and results by collecting 9 chip samples and 3 reject pulp sample from previous work. The writer has no previous exploration experience on the NGP. 5.0 RELIANCE ON OTHER EXPERTS The writer, not an expert in legal matters, is required by NI 43-101 to include a description of the property title, terms of legal agreements and related information in this report. The writer relied on property agreements and title documents in order to provide summaries of title, ownership and related information in this report. Property agreements, title opinion and other relevant legal documents were prepared or reviewed by NGL’s legal counsels, Maitland and Company of Vancouver and the writer has relied on their expert opinion. . 6.0 PROPERTY DESCRIPTION AND LOCATION 6.1 PROPERTY AREA AND LOCATION The NGP covers an area of approximately 1277km2 and encompasses most of the auriferous potential of the Nuuk Gold Province, southwest Greenland. The property is located in the Nuuk Fjord area of West Greenland. The seven blocks are within a rectangular area defined by latitudes 63°45’N to 65°30’N and longitudes 51°40’W to 49°30’W and extend northeast for 150km from 20km south of Nuuk, the capital of Greenland. The NGP, Storoe License, is centered near 64°42' N Latitude, 50°06' W Longitude (Figures 6.1 & 6.2). Table 6.1 Pertinent Data on NGP Licenses. License Name License # Km2 covered by Period Renewal agreement Required Storoe 2007/59 884*-6=878 1-1-07/31-12-11 31-12-2011 Isua 2005/25 179 1-1-05/31-12-09 31-12-2009 Igasoq 2008/37 193 1-1-08/31-12-12 31-12-2012 Qilanngaarsiut (application) 27 pending N/A • *NGL has copy of License showing 884km2, in the agreement with in NGL’s agreement with NunaMinerals 6km2 were excluded so the area subject to the agreement may be 884-6=878 km2 (from copy of license) or 874-6=868 km2 (from figures in BMP data base). The area of the NGP is c. 1277km2. PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 12
  14. 14. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND • • ▲north Figure 6.1 General Location Plan For Nuuk Area, Greenland. (A=Aappalaartoq and Q=Qingaaq mountains) PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 13
  15. 15. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND Figure 6.2: Location of NGP Licenses. 6.2 LAND TENURE, AND LEGAL AGREEMENTS On June 23, 2009, Nuna, the main mineral exploration company in Greenland, signed an option agreement with Nuukfjord Gold Mines Ltd. (NGM) covering the 1277km2 Nuuk Gold Province Project (NGP) in the Nuuk Gold Province in West Greenland. Nuukfjord Gold Ltd. (“NGL”) through a subsequent purchase agreement acquired the NGM option to earn up to 65% interest in the 100% NunaMinerals A/S (“Nuna”) interest in the c. 1277km2 NGP in West Greenland (Nuna NR dated June 23, 2009). The NGP is an amalgamation of select parts of the Storoe exploration license which contain the advanced Storoe Gold Deposit and the Qussuk Gold Prospect, the Isua exploration license, the Igasoq exploration license and the Qilanngaarsuit exploration license (under application). Under the option agreement term, NGL is able to earn, incrementally through four phases, a 65% interest in the NGP by funding Cdn $23,000,000 (c. DKK 106 million) of exploration expenditures by September 30, 2013. Upon NGL earning a PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 14
  16. 16. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND 49% interest or 65% interest a joint venture to develop the NGP will be formed between NGL and Nuna (see Table 6.2). Nuna remains the operator of the NGP and NGM controls the funding. Table 6.2 Summary of Payment Schedule and Nuukfjord/NunaMinerals Deal Summary. Cumulative Cumulative Advance Advance Date Required % Interest Earned % Interest Earned Millions CDN $ Millions CDN $ 3.5 *** 3.5 *** *** 15 15 3.5 7.0 Sept 30, 2011 15 30 4.5 11.5 Sept 30, 2012 19 49 11.5 23.0 Sept 30, 2013 16 65 *** The initial $3.5 million is spread out over the first year as follows: Advance Cumulative Advance Date Required Millions CDN $ Millions CDN $ 0.50 0.50 July 31, 2009 Already PAID 1.25 1.75 10 days after IPO closing but not later than Dec 21, 2009 0.25 2.00 December 31, 2009 0.25 2.25 March 31, 2010 1.25 3.50 June 30, 2010 • Nuukfjord Gold Province, 1,277 square Km in 4 licenses (7 areas) • Nuukfjord can earn up to a 65% interest by property expenditures with no cash or stock payments. • Initially Nuukfjord can earn 49% by expenditures totaling CDN$11.5 million over the next 3 years. • Nuukfjord then has the option to earn an additional 16% for a total interest of 65% by advancing an additional CDN$11.5 million in the next year for a total of CDN$23.0 million. • During the earn-in period Nuna will be operator but Nuukfjord has control of the budget. • No interest is earned until $3.5 million is advanced. • A Joint Venture (J/V) can be formed once Nuukfjord has earned at least 49%. Usual dilution provisions apply. If Nuukfjord stops short of 49% it will retain its earned interest subject to dilution if Nuna continues and/or subject to a buyout for amount spent. PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 15
  17. 17. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND 6.3 GREENLAND MINING LAW The Danish Consolidating Act no. 368 of 18 June 1998 on mineral resources in Greenland (“Mineral Resources Act”) governs activities concerning and rights to exploration and exploitation of mineral deposits. The licenses issued under the Act are summarized in Table 6.3 and exclude hydrocarbons, radioactive elements and hydropower resources, which are subject to separate regulations. All applications, licenses and concessions are reviewed in accordance with the “Application procedures and standard terms for exploration and prospecting licenses for minerals in Greenland” published by the BMP on 16 November 1998. TABLE 6.3: SUMMARY OF GREENLAND MINERAL TENURE * TYPE OF TENURE Annual per License PERIOD RENEWALS Exploration Required/km2 years years Prospecting License (non Exclusive) 5 years Upon application N/A Yrs. 1-2: DKK 100,000 Yrs. 3-5: DDK 200,000 Yrs. 1-2: DKK 1,000 Exploration License Yrs. 6-10: DDK 1 for 5 years; 3 Yrs. 3-5: DKK 5,000 (Exclusive) 400,000 5 years for 2 years ea.** Yrs. 6-10: DKK 10,000 Exploitation License Extension to 50 (Exclusive) Outlined in License 30 years years N/A Notes to Table 6.2 • *An applicant may hold more than one mineral tenure. • **Years 11-12: 13-14; and 15-16 are available on 2 year basis after BMP has reviewed application for renewal by Dec. 31 in years 10, 12, and 14. The BMP is entitle to change terms of the concession. PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 16
  18. 18. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND 6.4 LEGAL SURVEY The lease areas are established by claim of an area defined by coordinates of corners. A GPS survey can be used to establish claim boundaries in the field and a legal survey is only necessary to resolve conflicting ownership. If a legal survey is required, the costs of the survey are the responsibility of the license holder. 6.5 LOCATION OF MINERALIZATION AND FACILITIES The location of main zones of known mineralized zones and drill locations are shown on Figures 9.4, 9.5, 9.6, 12.1 and 13.1. Drilling and diamond sawed channel samples are the main evaluation tools with minor blasting of rock trenches. The NGP has never contained a processing facility but a number of sites were viewed that are suitable for a mill and tailings and waste rock disposal. The proximity of water transport allows for a central facility fed by a number of mineralized zones. 6.6 ENVIRONMENTAL LIABILITIES NGL has informed the writer that their initial due diligence work indicates that the property interest is subject only to normal environmental regulations and liabilities as stipulated under the laws of Greenland and the sufficiency of rights for exploration and mining operations on the property is subject only to normal procedures and permits under the laws of Greenland. The auriferous zones are generally low sulfidation system and acid leaching should not be a problem. The project areas and camp visited by the writer were reclaimed and cleaned to industry best practice standards. The writer is not aware of any environmental liabilities affecting the NGP. 6.7 PERMITS Exploration Permits are required for drilling and blasting. Permits are issued by the BMP and have been obtained for the 2009 field season. Camps are inspected on a regular basis by the BMP and must be maintained to permit requirements. Annual reports of activity are filed with the BMP that summarize drill location, site reclamation and site cleaning. Annual assessment or work reports with results of work are filed with the BMP. Each area or sub-area, where work is performed, requires a report. PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 17
  19. 19. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND 7.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY 7.1 ACCESS AND PROXIMITY TO POPULATION CENTRES Access to most parts of the property is by boat with helicopter used to support crew and drill moves and to move some supplies and samples. Greenland obtains most of its electrical power from hydro projects and a number of local run of river power possibilities exist. The NGP concession blocks cover ground that extends from near sea level to low mountains. Glaciers lie east of the NGP and to control cost, drill program are generally conducted between May and October. Geophysical program can start earlier and extend later but geological mapping is best done during summer months when most of the snow has melted. 7.2 PHYSIOGRAPHY, TOPOGRAPHY, ELEVATION, CLIMATE AND VEGETATION The NGP property has elevations ranging from sea level to over 1,000m and some rugged mountains terrain but generally the terrain consists of rounded hills or low mountains separated by glacially carved valleys. Elevations on the property extend up to 1500m in ice covered areas in the northeast. The climate at lower elevations is moderated by proximity to ocean currents. Ocean with normal temperatures ranging between about -10° and +7° but in the innermost parts of long fjords, temperatures can rise to more than 20°C in June, July and August. Annual rainfall at Nuuk, in the order of 750mm, is distributed in relatively moist, >80mm per month, summers and dry, ~45mm per month, cold snowy winters. Higher elevations, occurring in much of the north- eastern part of the property, are covered by ice. Exploration can be carried out year round with proper preparations but costly challenges are caused by short periods of daylight, snow and cold temperature. Mapping and regional sampling are summer activities. Geophysical surveys can start in mid-April but daylight is only about 6 hours. The vegetation is characterized by an absence of trees. However, in sheltered valleys in southern Greenland there is rock birch, mountain ash, alder, and willow scrub. The overall vegetation is low rock and tundra plants. Greenland’s national flower is Niviarsiaq which combines with wild flowers, herbs, mosses, greyleaf willow and heather to give a colourful summer landscape. The reindeer, also known as the caribou when wild in North America, is an Arctic and sub-Arctic dwelling deer commonly found in Greenland. Other terrestrial mammals include arctic fox, arctic wolf, polar bear (North and East Greenland), musk ox, collared lemming and mountain hare. Marine mammals PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 18
  20. 20. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND include whales, seals, and walrus. Fishing and harvesting sea mammals is the main industry in Greenland. . 7.3 SURFACE RIGHTS, POWER, WATER, PERSONNEL, TAILINGS SITES, PROCESSING PLANT SITES Surface rights in the NGP project area are largely held by the State with local small fishing villages privately owned. The issuance of an Exploitation License will give rights to exploit a mineral deposit in a manner outline and overseen by the Bureau of Mines and Petroleum (BMP). The Store Gold Deposit, the most advance gold prospect on the NGP has a basin area situated nearby that could be used for waste and tailings disposal but no environmental or mining assessment has been completed. 7.4 ENVIRONMENTAL CONCERNS The BMP is responsible for the issuing of and supervision of issued licenses. A one stop licensing and permitting process is seen by Greenland as an advantage to the exploration industry. The concern and care of the environment is a responsibility of the BMP and Greenland which relies on fishing as its main industry. BMP may undertake inspection of licensee’s activities and review all information relating to the licensee’s activities under a license. Transportation costs of inspection personnel between inspection points and the nearest airport is the responsibility of the licensee. Within 12 months of termination of a license, a licensee must remove all installations, buildings and stored items in the expired license area and carry out final clean up activities to remedy remaining damages to terrain or vegetation. The writer visited several NunaMinerals exploration, drill and camps sites and found them to be clean and reclaimed to near original conditions. The writer is not aware of environmental problems or situations which affect the GNP. 8.0 HISTORY The historic exploration is mainly taken from an assessment report on the Storoe License (Ostergaard, 2007, updated 2009). Ostergaard’s historic section is mainly based on his personal experience while conducting and managing exploration of the NGP for NunaMinerals and associated companies. Previous exploration of the NGP included regional geological mapping and reconnaissance geochemistry by the former Geological Survey of Greenland and stream sediment sampling by Kidd Creek Mines in 1985. NunaOil visited the Storoe area in 1990, and increased company activity the following years with mapping, rock sampling and sediment sampling that resulted in a 13 hole (c. 2900m) drill program in 1995. Encouraging results justified continued exploration during 1996 with 8 holes totalling c. 2000m. The gold mineralization and geology PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 19
  21. 21. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND became the focus of a PhD thesis and a Master thesis by students from Aarhus University. Due to decreasing gold prices and NunaOil’s focus on the evolving Nalunaq Gold Mine in South Greenland, the NunaOil license was relinquished in 1998. In 2002, NunaMinerals A/S, a minerals division formed by NunaOil in 1968, re-claimed the Storoe license and initiated further exploration. Nuna, in collaboration with The Geological Survey of Denmark and Greenland (GEUS) demonstrated that the Nuuk Fjord region and especially mineralization on Storoe showed similarities to gold districts like the Abitibi greenstone Belt in Canada and the Yilgarn craton in Western Australia. Promising results from minor drilling in 2003 located a new mineralized level in an untested area in the southern part of the license. The new discover resulted in extensive drilling of 24 holes totalling c. 3900m in 2005; 14 holes totalling c. 2800m in 2006 and 12 holes totalling c. 1800m in 2007. In 2007 Nuna collected c. 1.2 tonnes of mineralized material for metallurgical studies of different gold zones and an additional seven mini-bulk samples were collected in 2008 for grain size studies and fundamental sample error calculations. A considerable percentage of the mineralization at Storoe was found to occur as “coarse-gold” with grains up to 3mm wide. The coarse-gold grains are unevenly distributed causing some large grade variations in analyses of mineralized zones. At the Qussuk Gold Project (Storoe, sub 2 License) was first acquired in 2002. Nuna visited the area on 2004 and 2005 as part of a regional recognisance program with 100 samples collected. The results were encouraging and in 2006 a more trough sampling program and VLF and Ground magnetic surveys were carried out in the Blue Fox and Swan zones. Sampling included 165 sediment samples and 198 rock samples including 230m of sawed rock channel sampling. The results lead to a 2007 airborne geophysical survey (SkyTEM) and extensive surface sampling to outline previously identified mineralization and identify new prospective areas. The positive indications led to a 3430m drill program at Qussuk in 2008 and additional surface sampling. PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 20
  22. 22. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND Table 8.1 Summary of Exploration History of the NGP. Year Operator Work Program 1991 NunaOil 8 days in June and July. Approx. 100 rock and sediment samples (including HMC). Samples ere mainly from Aappalaartoq area and the northern part of Storoe. Gold values up to 3.5ppm. Anomalous W, Cu and Ni. Minor geological reconnaissance. 1992 NunaOil 10 days in July. Approx. 400 rock samples and 100HMC samples. Geological sketch maps of the Aappalaartoq mountain. Generally moderate gold grades from rock samples (up to 500ppb). Most rock samples were from sillimanite-garnet- biotite gneiss. 1993 NunaOil Many site visits in June, July, August and September. A total of 210 mainly rock and sediment samples were collected. The main work was on known anomalous scree and sediment areas on Aappalaartoq. The fieldwork identified: 1. Gold associated with arsenopyrite in altered amphibolite. 2) Gold in sulphide rich garnet-hornblende rocks. Best rock sample 11.5ppm Au from a discontinuous mineralized layer immediately above the contact between gneiss and amphibolite on the Aappalaartoq SW face. 1994 NunaOil 5.5 weeks geological and geochemical survey. Approx. 550 mainly rock and sediment samples collected. Follow-up work on Aappalaartoq and discovery of Qingaaq (Main Zone (“ MZ”)) mineralization (up to 32ppm Au over 4m). Qingaaq (@1:10,000) and Aappalaartoq (@1:5,000) were mapped in the vicinity of mineralization. Topographic map prepared by Northway Map Technology with 10m contours but significant errors. 1995 NunaOil Bedrock sampling (including channel sampling) at revealed new targets at Qingaaq and Aappalaartoq areas. A 2,478m drilling program was carried out in MZ and on Aappalaartoq. 1996 NunaOil June through September- 400 mainly rock and sediment samples were collected to evaluate favorable geology on Storoe. A 2128m drilling program was carried out in Qingaaq and Aappalaartoq area. Several areas mapped and sketched. A 1:1,000near the main zone and area at 1:5,000. An 11.75km magnetic survey completed at the lower part of the Main Zone. A new zone, New Main Zone (NMZ) found east of Main Zone. Surface samples with gold values to 18ppm. 1997 NunaOil Two weeks of fieldwork in August to follow-up NMZ. Mapping and preliminary VLF studies revealed that MZ and NMZ could be identified by VLF. 2002 NunaMinerals Re-establish license (2002/07-222km2). Two day exploration in Aappalaartoq area with 30 rock samples and a few sediment and scree samples from known mineralized areas. 2003 NunaMinerals July-October: A total of 400 rock and sediment samples collected. A single 10m Winkie hole completed on upper Qingaaq but no other holes do to drill problems. Exploration resulted in discovery of BD Zone (BDZ) with best sample 17ppm Au. 2004 NunaMinerals May-September: Approximately 650m of not assayed 1996 core was split and analyzed with sections up to 4.7ppm Au. At Qingaaq area, 550m of channel sampling was completed in 34 profiles. Sampling focused on BDZ and produced grades up to 20ppm Au/2.5m. Winkie drilling (5holes c. 130m)at upper Qingaaq. 2005 NunaMinerals June-September: Westherhaven Base Camp established for NM and GEUS activities in Nuuk Fjord. Approx. 160 rock samples collected from Qingaaq and Aappalaartoq areas. A c. 3900m drill program in the Qingaaq area. 2006 NunaMinerals June-August: A total of 220, mainly rock, samples included 300m of channel sampling from MZ West; NMZ and Aappalaartoq SE areas. GEUS and NM co- finance with 1:2000 mapping of mineralized areas and 1:10000 mapping of all other zones on central Storoe. 2893m of diamond drill completed in the Qingaaq and Aappalaartoq North shoulder areas. 2007 NunaMinerals July-August: A total of 100 rock sample, mainly channel samples collected on the Aappalaartoq east ridge and at MZ West and BDZ on Qingaaq.1816m of diamond PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 21
  23. 23. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND drilling completed on lower and upper Qingaaq. 7 small bulk samples (c. 1200kg) collected from different Au-zones for metallurgical tests and to assess the nugget effect. 2008 NunaMinerals July to August: A total of 113 rock samples, mainly channel samples collected from MZW and upper BDZ areas for grain size studies. 8.1 HISTORIC DRILLING AND SAMPLING Saw channelled sampling programs were used to trace gold mineralized surface exposures and establish drill targets. Drilling campaigns were undertaken by Nuna Oil and Nuna in 1995, 1996, 2005, 2006, 2007, and 2008. The historic drilling totalled c. 15,000m. Since Nuna continue as operator of the NGP until a JV is formed with NGL, previous drilling is reviewed in Section 13 and 2009, current exploration, is summarized in Section 12. Table 8.2 Historic Drilling Through 2008 on NGP. NO. OF DRILL PROJECT TOTAL LENGTH SIGNIFICANT RESULTS* MINERALISATION HOLES Gold mineralisation at 25m grading 6.89 g/t two tectono- Storoe Au, stratigraphic levels Qingaaq 65 11480 m 11.95m grading 12.67 separated by 100- Prospect g/t Au 150 m. Gold zones 2m grading 52 g/t Au can be traced for minimum 1.2 km. Similar structural and geological 14m grading 0.5 g/t Storoe setting as Qingaaq Au. Surface Aappalaartoq 6 1728 m prospect. Part of sampling return prospect c. 5 km long 46 g/t Au. continuous gold anomalous belt. Series of gold- Qussuk 0.6m grading 19.6 g/t bearing qtz-lenses. Plateau 21 2828 m Au. Surface sampling Traceable for up prospect return up to 36 g/t Au. to 600 m along strike. Hydrothermal Qussuk 23m grading 1.24 g/t alteration zone. Swan North 17 602 m Au Can be traced for prospect 2009 results pending several kilometres along strike. Shear induced, No significant drill Isua carbonate hosted grades. Surface Tangent 4 372 m gold lenses sampling return up to Showing traceable for 106 g/t Au several kilometres PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 22
  24. 24. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND *Intersections are drilled intervals and not true width. 9.0 GEOLOGICAL SETTING 9.1 REGIONAL GEOLOGY AND TECTONICS (Figure 9.1& 9.2) The Regional geology of Greenland is shown after a GEUS compilation in Figures 9.1 and 9.2. The southern part of Greenland is shown to be underlain by Archean Craton that separated from the North American Craton, and an early Phanerozoic orogenic belt, both of which have been intruded by a middle Proterozoic intrusive complex. The Nuuk region comprises some of the largest areas of exposed early, middle and late Archean crust. The region makes up part of the North American Craton and correlates with Archean gneisses of the Nain Province in Labrador, Canada. The geology is dominated by grey orthogneisses formed during several episodes of crustal growth. The gneisses can be subdivided into several distinct ages which amalgamated during the Neoarchean (c. 2.7-2.6 Ga). Individual terranes are separated by deeply-seated tectonic boundaries. Archean supracrustal belts, consisting of predominantly metavolcanic rocks and lesser metasedimentary rocks occur within or between crustal blocks. The Storoe supracrustal rocks are bounded to the west by the Storoe shear Zone (Figures 9.2 & 9.3), which separates supracrustal rocks from the c. 3.05 Ga orthogneisses of the Akia terrane in the structural footwall exposed along much of northern Storoe’s western coast. To the east, supracrustal rocks are overlain by Early Archean orthogneisses of the Faeringehavn terrane and underneath the supracrustal belt, interleaved geisses of Early to Late Archean age occur to the north. The NGP was affected mainly by amphibolite facies metamorphism, with sillimanite being the dominate alumino-silicate. Petrographic observations of gold inclusions in garnet show that gold mineralization occurred prior to peak metamorphism. Post peak metamorphism gold associated with retrograde sericitization and epidotization suggest later gold remobilization. The coastal Nuuk Fjord region has significant potential to contain large lode gold deposits. The region’s structural similarity to Timmins, Ontario and Kalgoorlie, Australia demonstrates that the Ivinnguit fault system,,which includes the Storoe shear zone, may have been a major feeder conduit for gold-bearing hydrothermal fluids. The presence of high grade gold occurrences along the 150 km length of the fault system supports its importance as a controlling feeder zone. 9.2 PROPERTY GEOLOGY (Figures 9.3, 9.4, 9.5, & 9.6) The supracrustal rocks on the NGP comprise a tectonically dismembered sequence of mafic to intermediate amphibolite, ultrabasic rocks, garnet-mica- sillimanite schist and fuchsite-bearing quartzite (Hollis et al., 2004). The sequence is best exposed in the central and northern part of Storoe in the area around Qingaaq (1616m) and Aappalaartoq (1440m) which are about 4 km apart (Figures 9.2 & 9.3). PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 23
  25. 25. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND The Qingaaq and Aappalaartoq mountains contain a supracrustal sequence consisting mainly of biotite gneiss, amphibolite, pegmatite and quartzite and quartz rich gneiss. The Storoe shear zone represent a 350-400m wide major structural zone with synformal and antiformal folding of supracrustal rocks in its hanging wall (Figure 9.3). The supracrustal rocks generally follow the NNE or NE trend of the major structural zone but are subject to complex folding and structural offset at Aappalaartoq Mountain. Amphibolite zones in the Qussuk area are shown in Figure 9.4 with traces of alteration zones containing gold showings. Details of the geology of the Swan North prospect and Plateau prospect (examined by the writer) are shown in Figures 5 and 6 (prepared by Nuna, 2009) along with the location of the writer’s verification samples. . PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 24
  26. 26. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND Figure 9.1: Geology of Greenland PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 25
  27. 27. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND Figure 9.2 Generalized Geology of License Areas. (Figure Prepared by NunaMinerals) PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 26
  28. 28. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND ▲north Figure 9.3 Geology Map of Central Storø (from Ostergaard, 2009). (A=Aappalaartoq Mountain and QN=Qingaaq) PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 27
  29. 29. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND Figure 9.4 Qussuk Area Showings and Amphibolite Zones (From Nuna, PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 28
  30. 30. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND Figure 9.5 Swan North Geology, Drillhole Locations and Writer’s Sample Location. PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 29
  31. 31. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND Figure 9.6 Geology of Plateau Prospect Showing Drillhole & Writer’s Sample Locations. PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 30
  32. 32. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND 10.0 DEPOSIT TYPE 10.1 Archean Gold (Figures 10.1& 10.2) Exploration targets on the NGP are Archean greenstone belt structurally controlled gold deposits (Figure 10.1) that are low sulfidation in the Storoe Gold deposit with four named zones consisting of the BD, hanging wall, main and new main zones. The highest gold concentrations are linked to zones of quartz veins and arsenopyrite mineralization. The BD zone is associated with the contact between garnet-rich gneiss and amphibolite while the other three zones occur in an antiformal fold hinge. At Aappalaartoq Mountain elevated gold occurs in a rust contact zone with sulphide mineralization in association with copper, lead and zinc mineralization in quartz vein systems. Like the BD zone, the gold mineralization occurs at the contact between amphibolite and garnet-rich gneiss. Mineralization, at the Qussuk prospects, is intermediate sulfidation with modeling by Stensgaard and Stendal (2007) suggesting the geological environment has possibility for volcanic massive sulphide (VMS). The gold mineralized intermediate and basic supracrustal volcanic rocks at Storoe probably formed in a back-arc or intra-arc volcanic environment. The gold mineralization occurs within zones of intense and deformation. The earliest mineralization is believed to be synvolcanic, formed in an island-arc environment (e.g. Qussuk), or associated with an early shearing event at low metamorphic grades. The gold could be concentrated from nearby volcanic sources. At the BD zone gold mineralization occurred pre-metamorphic, and is partly bound to the lower contact of the upper amphibolite. 10.2 Nuuk Gold Province Exploration Approach Greenstone belts are a major source of gold in parts of most Precambrian shields with the gold production in central and eastern Canada mainly from Archean greenstone belts. Silt sampling helps to select specific areas for ground follow-up with geological mapping and prospecting and when gold is involved heavy mineral sediment sampling may be more selective. In steep terrane silts and soils may not develop and scree sampling can give indications of the content of rugged areas. The extensive exposure and poorly developed vegetation allows prospectors to follow favourable horizons and geologists to evaluate surface mineralization using sawed channels. All of the common geochemical approaches have been used with reasonably good success by Nuna. In areas with higher sulphide content or stronger pyrrhotite, magnetic and electrical geophysical methods might help define mineralized zones. Silicified zones without connected sulphide layers may be revealed as high resistivity zones. Airborne magnetic and electromagnetic methods have been attempted but their utility has yet to be established. Since Archean gold deposits are associated with contacts and/or structures the VLF-EM method can be used to follow mineralized structures in covered areas and resistivity may help in evaluating the degree of silicification. Eventually the surface indication must be evaluated at depth and along strike with drilling and because of complex structure Nuna has mainly relied on diamond drilling. PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 31
  33. 33. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND Figure 10.1 Model for Archean Greenstone Belt Gold Deposits (Pulsen et al., 2000). Figure 10.2 Simplified Model of Geological Environment and Mineral Occurrences NGP (Stensgaard and Stendal, 2007). PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 32
  34. 34. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND 11.0 MINERALIZATION At Storoe mineralization occurs at two main tectono-stratigraphic levels with high-grade lenses of quartz veins and disseminated sulphides and sulpharsenides in mineralized and altered higher-grade zones up to 12m wide and several hundred meters along strike within a larger, 10-50m, wide low-grade alteration envelope dominated by garnet-hornblende-biotite-diopside-rich rocks. Gold mineralization on the Storoe License occurs together with arsenopyrite at the BD Zone and the Main Zone on the north slopes of Qingaaq Mountain. Extensive channel sampling and more than 12,000 metres of core drilling has demonstrated continuity of mineralization in three dimensions on both the Main and BD Zones. The Main Zone gold mineralization occurs in an altered upper amphibolite sequence in the core of an antiformal fold with gold in quartz veined rocks, commonly rich in garnet and biotite. A Main Zone, 1.00m chip sample by the writer contained 25.0g/t Au (Acme 22.31g/t Au) and 2.00m chip samples 197353 and 197356 contained 8.72 g/t Au and 8.80g/t Au respectively. The Main Zone occurs within a large, ENE-plunging F3 antiformal hinge (Main Zone s.s.) with an eastern flank (Main Zone east and Hanging Wall Zone) and a western flank (Main Zone west) that each can be followed uphill for approximately 400 m on surface (Fig. 11.1). Rock samples return up to 91 g/t Au in this area with common visible gold in both surface and drill core samples. The mineralisation has been traced to 150 m below the surface in drill holes. The lower part of the hinge area is covered by scree, and the exact dimensions and geometry of the mineralisation in this area is thus only indicated from drill hole data. Higher-grade gold mineralisation occurs as a series of presumably discontinuous lens-shaped bodies (2–12 m wide), within a larger, low-grade (generally >1g/t Au) alteration envelope dominated by garnet-hornblende-biotite-diopside-rich rocks (10–50 m wide). The area is partly disturbed by late pegmatites. Gold grades in drill samples up to 52 g/t Au over 2 m occur in a 12m interval grading 12.67 g/t Au. The lower BD Zone is on the contact between biotite-sillimanite-garnet gneiss and the upper amphibolites. The BD gold mineralization occurs mainly in quartz- veined, arsenopyrite-bearing zones along the contact and in both rock types up to 20m away from the contact, mainly within or next to sections of sheeted quartz veins. The BD zone, exposed at 700–1050 m elevations, has been followed along strike for 700-800m with channel samples that returned up to 20g/t Au over a true width of 2.5m. Three-dimensional modeling of the BD zone based on surface geology and drill core information shows that the zone dips to the NE underneath the Qingaaq north face, and defines a major folded mineralised plane structurally below the Main Zone. It gets progressively shallower (dipping c. 45° at depth) down from the exposures near the top of the Qingaaq north face. The fold geometry gets progressively more complex towards the north (downhill). In drill holes at the foot of the Qingaaq north face, the BD plane has been recognized as deep as 300 m elevation (150–200 m below surface), giving a minimum known length of the BD horizon of c. 1000 m. Gold grades in drill core samples range from 1g/t Au to up to 30 g/t Au over a minimum of 2m. Re-Os analyses of arsenopyrite show that two periods of gold mineralization occurred with older mineralization of the BD Zone possibly re-mobilized during peak PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 33
  35. 35. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND metamorphism into structurally controlled and higher grade Main Zone mineralization. Gold grades in drill samples range up to 52 g/t Au over 2m in a 12m interval grading 12.67 g/t Au. The higher-grade nature of the Main zone mineralization was verified by the writer’s samples. A New Main Zone, discovered in 1996, is 2-10m wide and located west of the Main Zone west in a NE-SW trending ductile thrust plane. Narrow quartz veins occur within altered amphibolite which can be traced for about 400 meters. Gold at Storoe also occurs within sulphide-rich garnetite consisting mainly of almandine garnet, biotite and pyrrhotite, and within Iron formation. The iron formation, occurring stratigraphically below the BD horizon will be targeted with some Phase 1 drill holes. A BD zone, 1.00m chip sample by the writers contained 5.24g/t Au (Acme 3.90g/t Au) and a writer’s 2.00m chip sample contained 0.976g/t Au (Acme 0.83 g/t Au). PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 34
  36. 36. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND ▲north Figure 11.1 Qingaaq Prospect Showing Locations for BD and Main Mineralized Zones. PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 35
  37. 37. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND 11.1 GENERAL DESCRIPTION The NGP covers the known gold prospects in the Nuuk Gold Province and favourable geology believed to have excellent potential for new discoveries. The area has similar geological history to Archean greenstone belts in Ontario and Quebec, Canada but the host rock were exposed to higher pressure and temperatures. The metamorphic conditions resulted in mainly amphibolite and some granulite facies metamorphism with mineralized zones rich in garnet, amphibole, mica and sillimanite, pyrrhotite, and arsenopyrite with more abundant chalcopyrite, sphalerite and galena in area with VMS affinity. 11.2 EXPLORATION TARGETS At the Storoe gold deposit the emphasis is on definition drilling and expansion of the Main and BD zone mineralization (Storoe Gold Deposit). A thrust ramp model has been postulated and if found to be applicable will expand the tonnage potential of the BD and Main zones. At the Qussuk prospects mineralization has been traced for nearly 20km with mineralization believed to be syn-volcanic and formed in an island-arc environment. Four main named zones include the Plateau Zone, Blue Fox Zone, Swan Zone, Swan N Zone and recently discovered Alma Zone: • Plateau Zone contains auriferous zones 1.5-2.0m wide consisting of garnet altered sulphide-bearing, quartz veined amphibolite. Visible gold (VG) has been identified in quartz veins with a Nuna grab sample yielding 35g/t Au and 7 of 20 diamond drill holes completed in 2008 reporting VG. The VG is typically found in narrow quartz veins (up to 0.6m) flanked by semi-massive to massive pyrrhotite and minor chalcopyrite. A 1m chip sample collected by the writer contained 9.40 g/t Au. • Blue Fox Zone is exposed on the south-side of Qussuk Bay where gold occurring quartz veined amphibolite, calc-silicate alteration and 5-30cm wide band of massive to semi-massive iron-copper sulphides. A Nuna sawed 1.5m channel yielded 21.7g/t Au and several other rock and sediment samples in an area 25 by 100m are in the 2-5g/t Au range. • Swan Zone contains semi-massive to massive iron-copper sulphides in fold hinges in grey meta-andesite and amphibolite with local meter wide zones enriched in sulphides. An 80m wide alteration package with quartz, hornblende, garnet, tourmaline and iron-copper sulphides returned modest gold values. DDH 25 intersected 24m grading 1.23 g/t Au in the alteration zone. • Swan N Zone is a 30-80m wide by 1km N-S trending zone of partly silicified, hornblende, quartz, garnet, biotite, and iron-copper sulphide bearing zone. Nuna channel samples yield up to 2m grading 6.5g/t Au (writer’s check sample 6.15g/t Au) with several other 2m channel samples grading 1-3g/t Au. Zone was drill in 2009 with results pending. • Alma Zone west of Swan N Zone was discovered in 2008 has several surface samples in the 1-4.5g/t Au range. The zone occurs along a 1.5km trend that is in the early prospecting stage. PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 36
  38. 38. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND 11.3 EXPLORATION POTENTIAL The NGP is believed to have potential to develop into a significant Archean gold camp with the geological model developed by NUNA and GEUS (Figure 10.2) suggesting the potential for precious metal enhanced VMS deposits. The VMS possibilities are also being investigated at the Qussuk, Isua and Igasoq licenses. 12.0 EXPLORATION BY THE ISSUER NGL is earning its interest in the NGP by initially funding exploration with Nuna acting as operator. Nuna’s staff gained experience in exploring the NGP through programs conducted since 1991 and NGL will acquire expertise as it manages budgets and earns toward a JV. The previous exploration included c. 3600 surface samples from Storoe including c. 3000m of diamond sawed channel samples. The majority of these samples are from the Aappalaartoq and Qingaaq mountain areas and Qussuk where systematic sampling is continuing during the 2009 field season. Historic drilling totalling over 17,000m is summarized in Table 8.2 and in Section 13 of this report. Nuna and an associated company NunaOil have explored the in the NGP area since 1991. The Qingaaq prospect and Aappalaartoq Mountain area has been explored with c. 3600 surface samples which includes c. 3000m of rock channel sampling and approximately 13,000m of drilling with 66 holes at Qingaaq and 6 at Aappalaartoq. Six short Winkie holes were also drilled. Drilling was started at Qingaaq by NunaOil in 1995 and 1996 and later continued by Nuna in 2003, 2004, 2005, 2006 and 2007. A regional recognisance programs of Qussuk in 2004 and 2005 produced samples with encouraging results and in 2006 a more substantial surface sampling program was conducted. The 2007 results led to a helicopter supported airborne SkyTem magnetic and electromagnetic survey covering 45km2 with lines spaced at 100 meters and 400 line kilometres flown. The positive results from surface sampling and airborne geophysics led to a 3430 m drilling program in 2008 with 20 holes drilled in the Plateau Zone, 1-300m hole drilled to test a SkyTem anomaly in the Swan Zone and 4 holes drilled in the Swan N Zone. The Isua concession contains the Tangent Gold Showing and Baseline Target (base metals) with a 110g/t grab sample containing from the Target showing and a kilometre long electromagnetic Baseline conductor associated with Zn, Pb, Ag, and Au mineralization. A 2008 four hole 372m initial drilling program at Isua produced no significant drill results. Historic exploration from 1991 through 2008 by Nuna and NunaOil on the GNP has included over 5,000 surface samples and 17,010m of diamond drilling. Screened metallics assays have been used on mineralized core and elevated surface sample to moderate the nugget effect caused by the irregular distribution of course gold. The 2009 field season being financed by NGL has concentrated on the Qussuk prospect area with a diamond drilling program at Swan North (Figure 12.1) of 1363.45m completed in 13 holes at 7 sites. The target zones, auriferous garnet-biotite- PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 37
  39. 39. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND quartz-sulphide zones, were intersected, core logged and samples. A drill hole summary is presented in Table 12.1 with hole locations shown on Figure 12.1. The 2009 program, presently in progress, is being funded by NGL with an advance of $500,000 paid to Nuna. At Storoe, 9 sites were selected for drill pad preparation for the 2010 drilling program (Figure xx). About 4,000 (20-25 holes) of drilling is planned to provide information on the BD Zone on about an 80m x 100m grid. Drilling would extent up to 60m beyond the BD zone to intersect the underlying iron formation. An additional 1000m of drilling in the main zone to test a thrust ramp model and possibly extend the Main zone is being considered. At Qussuk, a 13 hole drilling program of 1363.45m was completed at 7 sites at Swan North (Table 12.1, Figure 12.1). The garnet-biotite-quartz-sulphide targeted zones were intersected with core logged, sampled and submitted for analyses. Surface saw channel sampling included: • Alma-15profiles with total length of 82.5m, • Swan North-8 profiles with total length of 95m. A total of 34 sediment samples were collected from drainage systems to the east and northeast of Swan and Swan North. At Igasoq a 54 sediment sampling program was carried out. At Qilanngaarsuit a one week reconnaissance rock sampling and sediment sampling program was carried out. Further 2009 drilling (possibly 600m) and follow-up surface geochemical sampling are contingent on the successful results of the completed work grogram. Table 12.1 Pertinent Hole Data for NGL/Nuna 2009 Drill Program. Borehole Inclination Azimuth Depth Drill Pad Coords Elevatio No. N W n DDH-26 -80o 125o 124.68m 64.81082 51.09246 257m DDH-27 -45o 120o 80.00m 64.81173 51.09060 258m DDH-28 -70o 120o 100.35m 64.81173 51.09060 258m DDH-29 -45o 120o 82.11m 64.81290 51.08865 270m DDH-30 -70o 120o 112.52m 64.81290 51.08865 270m DDH-31 -45o 120o 80.22m 64.81401 51.08628 328m DDH-32 -70o 120o 120.64m 64.81401 51.08628 328m DDH-33 -45o 120o 100.35m 64.81490 51.08496 364m DDH-34 -70o 120o 121.64m 64.81490 51.08496 364m DDH-35 -45o 115o 91.23m 64.80742 51.09920 308m DDH-36 -70o 115o 127.72m 64.80742 51.09920 308m DDH-37 -45o 110o 91.23m 64.80843 51.09689 268m DDH-38 -70o 110o 130.76m 64.80843 51.09689 268m PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 38
  40. 40. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND Figure 12.1 Location of Qussuk 2009 Boreholes and Surface Saw channel Samples. (Profile lines are detailed traverses for location of boreholes (from Brown, 2009). PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 39
  41. 41. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND 13.0 DRILLING NGL supported 2009 drilling in the Swan North Prospect, Qussuk area of the NGP was completed prior to the writer’s site examination (Table 12.1; Figure 9.5). Historic drilling totalling c. 17,000m had been conducted by Nuna and NunaOil with the majority concentrated on the BD and Main Zone at the Qingaaq prospect on Store (Figures 13.1, 13.2, &13.3). Significant drill intersection from the BD and Main Zone are summarized in Table 13.1). Nuna, with funding provided by NGL, has prepared 9 additional pads to further evaluate and if successful delineate gold mineralization at the BD and Main zones. Table 13.1 Selected Drill Intersections From the Main Zone and the BD Zone, Qingaaq prospect, Storø. Storø Drill Hole Intersection (m)* Length (m) Au g/t No. Main Zone 95-01 6.00-18.00 12.00 4.24 95-03 32.00-42.00 10.00 10.10 95-05 45.10-57.00 11.90 12.70 05-24 37.00-51.00 14.00 7.92 06-32 63.95-78.00 14.05 3.83 BD-Zone 05-14 89.00-93.00 4.00 9.58 05-17 129.00-135.00 6.00 5.07 06-29 160.00-162.00 2.00 12.90 07-47 69.00-73.00 4.00 7.01 * Drilled interval not corrected to true width. PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 40
  42. 42. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND Figure 13.1 Drillhole Plan at the BD and Main Zones (Storoe Deposit) at Qingaaq Mountain Prospect. PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 41
  43. 43. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND . Figure 13.2 Qingaaq Longitudinal Section 1. (from Nuna (Loc. see Fig. 13.1). PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 42
  44. 44. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND Figure 13.3 Qingaaq Longitudinal Section 2 (From Nuna (Loc. see Fig. 13.1). PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 43
  45. 45. TECHNICAL REPORT ON THE NUUK GOLD PROVINCE PROJECT, GREENLAND Table 13.2 Summary of Selected Drill core Samples 2008 Qussuk. Length Drill Hole Section [m] Gold [g/t] DDH-01 36.00-36.60 0.60 19.10 Plateau Zone DDH-02 46.00-48.00 2.00 4.64 DDH-03 39.50-41.00 1.50 5.92 DDH-14 36.60-37-70 1.10 12.60 DDH-15 32.80-34.00 1.20 6.68 DDH-25 45.00-46.00 1.00 3.59 DDH-25 51.00-52.00 1.00 1.11 Swan N Zone DDH-25 52.00-53.00 1.00 1.68 DDH-25 53.00-54.00 1.00 4.51 DDH-25 65.00-67.00 2.00 8.46 Selected drill hole intersections from Qussuk 2008 drill programme Drilled intervals not corrected to true width. Selected drill intersection from the 2008 drilling of the Plateau and Swan North zones at Qussuk are shown in Table 13.2 with hole locations shown on Figures 9.5 and 9.6. The 2009 drillhole locations at Swan North are also shown on Figure 9.5. A summary of historic drilling in the NGP is presented in Table 13.3. PAC GEOLOGICAL CONSULTING INC. SEPTEMBER 2009 44

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