Osikonmaki (Central Finland)
The deposit at Osikonmaki is located in eastern central Finland, 40km south of Outokumpu. The model for Osikonmaki is an epigenetic intrusion related shear zone gold deposit located in the northwest trending crustal scale Ladoga-Bothnian deformation zone. Gold is concentrated in the footwall to the shear zone which dips to the south at about 45°, and plunges towards the east.
In excess of 20km of historic drilling, IP and magnetic geophyscial surveys and base of till geochemical sampling has been undertaken at the project with potential for extensions outlined. The Osikonmaki Project has a historical resource estimate (the “historic estimate”) prepared under National Instrument 43-101 Standards of Disclosure for Mineral Project (NI 43-101), Companion Policy 43-101CP and Form 43-101F1, based on a 0.5 g/t cut off grade, including an Indicated mineral resource of 1.296 Mt at a grade of 1.70 g/t Au (68koz) and an Inferred mineral resource of 3.542 Mt at a grade of 2.09 g/t Au (244koz), as summarised in the Osikonmaki Technical Report, (defined in the “Technical Information” section below). While the Company considers the historical estimate to be relevant to investors, a qualified person has not done sufficient work to classify the historical estimate as current mineral resources and the Company is now not treating the historical estimate as current mineral resources.
Certain disclosure contained above of a scientific or technical nature has been summarized or extracted from the technical report entitled “Mineral Resource Estimate of the Rantasalmi Gold Deposit in Finland”, with an effective date of November 10, 2010 (the “Osikonmaki Technical Report”) that was prepared for Belvedere Resources Ltd. (“Belvedere”) by under the supervision of Alexandra Akyurek, MSc, CSci MIMMM, Senior Resource Geologist of Golder Associates (UK) Ltd (“Golder”), and who was an independent Qualified Person as such term is defined in NI 43-101 and sets forth the historical estimate. The Osikonmaki Technical Report was filed by Belvedere under its profile on SEDAR (www.sedar.com) on October 19, 2011. The mineral resource estimation included in the Osikonmaki Technical Report is historic in nature and was prepared using the guidelines of National Instrument 43-101. Tonnage and contained metal figures were rounded to the nearest thousand after calculations. The tonnes and grades were estimated in-situ and have had no mining factors applied to them.
A qualified person” for the purposes of NI 43-101 has not done sufficient work to classify the historical estimate as current mineral resources and Rupert is not treating the historical estimate as current mineral resources. A review by the Company indicates that the data preparation for the historical estimate as disclosed in the Osikonmaki Technical Report was undertaken according to industry best practices and the historical estimate provides an appropriate basis for the Company’s ongoing analysis of the Osikonmaki Project. To the best of the Company’s knowledge, information and belief, there is no new material scientific or technical information that would make the disclosure of the historic estimate inaccurate or misleading. Since the Osikonmaki Technical Report was written, 22 holes totalling 2,227m were drilled on the periphery of the resource pursuant to an option agreement and Belvedere filed the results thereof in a news release on SEDAR on April 23, 2012. Although encouraging the results are not expected to materially change the 2011 resource.
A new NI 43-101 report will be completed by the Company within 180 days of the closing of the acquisition of Northern Aspect Resources Ltd by Rupert on May 15, 2018, and will include all subsequent drilling completed by Belvedere. To complete the new NI 43-101 report a site visit to the project will be undertaken by a qualified person, whom will also review the drilling, surveying, sampling, QAQC and assay methods used by all previous operators to assess the reliability of the data to be included in completing the new NI 43-101 report.
The key assumptions used to prepare the historical estimate are as follows. Geological and assay information was derived from drilling by Belvedere Resources between 2005 and 2011 totalling 7,672m on a 0.4km2 area called Osikonmaki East (16,000m of drilling had previously been completed by the GTK on a strike length of 2.7km). Mineralisation was defined using a cut-off grade of 0.5 g/t Au. The Osikonmäki East deposit consists of three mineralised zones namely Main, Offset and Top. The Main zone gently undulates and therefore it was deemed necessary to unfold this deposit during variography and estimation. It was not necessary to unfold the Offset and Top zones. No additional mineralisation outside the deposits modelled was considered in the October 10, 2011 Mineral Resource estimate. Exploratory Data Analysis (EDA) was carried out by Golder for all deposits by looking at histograms, univariate and multivariate statistics and log-probability plots. This helps guide decisions such as: domaining, declustering, high grade restraining (treatment of high grades or outliers), compositing, parameters to be used during variography such as lag distance, and block size for the resource model. Golder composited samples to as close to 1.0 m as possible while forcing all samples to be included as this is the most frequently occurring sample length, as well as close to the average sample length. This was accomplished by slightly adjusting the composite length for each drill hole to be divisible across the wireframe while staying as close to 1.0 m as possible. Composites were broken at the intersection of the drill hole with the wireframe. Density was estimated for the Osikonmäki East deposit using a database of Specific Gravity (SG) measurements. No high grade restraining or top cutting was applied to the mineral resource estimate. Experimental variograms were generated and modelled for gold and density for the main lode. These parameters were then applied to the offset and top lodes, which did not have enough samples to build variogram models. Block grades were assigned to each lode using a three pass approach of Ordinary Kriging (OK). SG values were applied to blocks using Inverse Distance Weighting (IDW). Validation against the raw input data was conducted by Golder to ensure reproduction of drill hole grades is realistic and representative in the model. Both statistical and spatial aspects of validation were checked on a global and local scale. A block was classified as Indicated if it was estimated in the first estimation pass, was estimated using Belvedere samples only and was estimated using more than 15 samples; A block was classified as Inferred if was contained within the mineralized wireframes; and everything outside the mineralized wireframes or above the topography was unclassified. Golder considers the mineralisation contained within the Osikonmäki East deposit to fulfil the criteria of “potentially economic” to be reported as a resource. Golder considers a cut-off grade of 0.5 g/t gold to be reasonable for public reporting. This assumes the resource would be exploitable using open pit mining methods.
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